<PAGE>
Dear Shareholder:
We are pleased to send you the annual report for Daily Cash Accumulation Fund,
Inc. The past year was a good one for short-term investors. During the 12-month
period ended December 31, 1994, the Fund's compounded annualized yield was
3.79%. The corresponding yield without compounding was 3.72%. The seven-day
annualized yields with and without compounding on December 31, 1994 were 5.46%
and 5.32%, respectively.1
During 1994, the U.S. Federal Reserve undertook one of the most aggressive
efforts to raise interest rates in its history, and although the Fed's efforts
brought significant uncertainty to the nation's stock and bond markets, the
short-term money markets benefited throughout the year from rising yields.
In this environment, your Fund met its objectives well, combining an attractive
short-term yield and share-price stability with daily liquidity and investment
convenience.2
At this writing, the outlook for the money markets remains positive. Inflation
remains low, and short-term money-market investments are providing attractive
inflation-adjusted yields. Given the uncertainties still surrounding the
longer-term investment outlook, many investors are seeking stable, liquid,
short-term vehicles that provide dependable returns, and our money-market funds
offer some of the best vehicles conservative investors can find for their
short-term funds.
The reason has to do with our approach to short-term investing, a disciplined
one designed to identify money market instruments that seem especially
attractive when compared to others in the market, and to avoid those that seem
to carry unnecessary risks.
This conservative approach is especially noteworthy in light of the widely
publicized problems some aggressively managed money funds encountered during the
year. Although your managers are always looking for opportunities to enhance
portfolio income by monitoring yield differentials in the nation's money
markets, principal stability is their top priority.
In closing, I want to welcome new investors to the Fund and to thank those who
have been with us for some time. We appreciate your trust in Daily Cash
Accumulation Fund, Inc. and we look forward to helping you meet your investment
objectives in the future.
Sincerely,
JON S. FOSSEL
Jon S. Fossel
President, Daily Cash Accumulation Fund, Inc.
JAMES C. SWAIN
James C. Swain
Chairman, Daily Cash Accumulation Fund, Inc.
January 23, 1995
1. Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
2. The Fund is neither insured nor guaranteed by the U.S. Government. There is
no assurance that the Fund will maintain a stable $1 share price in the future.
<PAGE>
STATEMENT OF INVESTMENTS December 31, 1994
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
BANKERS' ACCEPTANCES -- 0.3%
Chase Manhattan Bank, N.A., 6.15%, 2/17/95 (Cost $9,919,708)............................... $ 10,000,000 $ 9,919,708
CERTIFICATES OF DEPOSIT -- 2.6%
YANKEE CERTIFICATES OF DEPOSIT -- 1.2%
Mitsubishi Bank Ltd., 5.60%, 1/25/95....................................................... 10,000,000 9,962,667
Mitsubishi Bank Ltd., 5.87%, 2/17/95....................................................... 10,000,000 9,999,165
Mitsubishi Bank Ltd., 6.20%, 2/6/95........................................................ 15,000,000 15,000,000
--------------
34,961,832
--------------
DOMESTIC CERTIFICATES OF DEPOSIT -- 1.4%
Huntington National Bank, 5.82%, 1/4/95(1)................................................. 20,000,000 19,994,140
LaSalle National Bank, 5.57%, 1/17/95...................................................... 5,000,000 5,000,000
LaSalle National Bank, 5.87%, 2/6/95....................................................... 15,000,000 15,000,000
--------------
39,994,140
--------------
Total Certificates of Deposit (Cost $74,955,972)........................................... 74,955,972
--------------
DIRECT BANK OBLIGATIONS -- 1.8%
ABN Amro Bank NV, guaranteeing commercial paper of:
ABN Amro Bank, Canada, 5.85%, 2/24/95.................................................... 10,000,000 9,912,250
First National Bank of Boston, 5.72%, 1/3/95(1)............................................ 13,000,000 13,001,098
PNC Bank, N.A., 5.66%, 1/4/95(1)........................................................... 10,000,000 9,994,356
PNC Bank, N.A., 5.82%, 1/4/95(1)........................................................... 15,000,000 14,995,428
South Carolina National Bank, 8.95%, 1/30/95............................................... 5,000,000 5,014,155
--------------
Total Direct Bank Obligations (Cost $52,917,287)........................................... 52,917,287
--------------
LETTERS OF CREDIT -- 3.3%
Banc One Dayton, guaranteeing commercial paper of:
Nationwide Funding Corp., 6.28%, 1/5/95(1)(2)............................................ 17,267,000 17,267,000
Credit Suisse, guaranteeing commercial paper of:
Queensland Alumina Ltd., 5.60%, 1/17/95.................................................. 10,000,000 9,975,111
Credit Suisse, guaranteeing commercial paper of:
Queensland Alumina Ltd., 5.80%, 2/1/95................................................... 8,000,000 7,960,044
Credit Suisse, guaranteeing commercial paper of:
Queensland Alumina Ltd., 5.85%, 2/13/95.................................................. 10,834,000 10,758,297
Credit Suisse, guaranteeing commercial paper of:
Queensland Alumina Ltd., 6.07%, 2/6/95................................................... 6,091,000 6,054,028
Mitsubishi Bank Ltd., guaranteeing commercial paper of:
Mitsubishi Motors Credit of America, 5.45%, 1/13/95...................................... 6,000,000 5,989,100
Mitsubishi Bank Ltd., guaranteeing commercial paper of:
Mitsubishi Motors Credit of America, 5.50%, 1/17/95...................................... 5,000,000 4,987,779
</TABLE>
2
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
LETTERS OF CREDIT (CONTINUED)
Mitsubishi Bank Ltd., guaranteeing commercial paper of:
Mitsubishi Motors Credit of America, 5.50%, 1/18/95..................................... $ 10,000,000 $ 9,974,028
Mitsubishi Bank Ltd., guaranteeing commercial paper of:
Mitsubishi Motors Credit of America, 5.65%-5.70%, 1/9/95................................ 15,000,000 14,981,111
Sanwa Bank Ltd., guaranteeing commercial paper of:
Orix America, Inc., 5.47%, 1/9/95(2).................................................... 5,000,000 4,993,922
Sanwa Bank Ltd., guaranteeing commercial paper of:
Orix America, Inc., 5.56%, 2/1/95(2).................................................... 5,000,000 4,976,061
Total Letters of Credit (Cost $97,916,481)................................................ --------------
97,916,481
--------------
SHORT-TERM NOTES -- 87.4%
ASSET-BACKED -- 13.9%
Asset Securitization Cooperative, 5.40%, 1/13/95(2)....................................... 15,000,000 14,973,000
Asset Securitization Cooperative, 5.65%, 1/11/95(2)....................................... 15,000,000 14,976,458
Asset Securitization Cooperative, 6.05%-6.10%, 2/1/95(2).................................. 35,000,000 34,816,583
Beta Finance, Inc., 5.80%- 5.82%, 2/21/95(2).............................................. 36,000,000 35,704,030
CIESCO L.P., 5.27%, 1/24/95............................................................... 15,000,000 14,949,496
Cooperative Association of Tractor Dealers, Inc., 5.55%, 1/23/95.......................... 5,000,000 4,983,042
Cooperative Association of Tractor Dealers, Inc., 6.07%, 1/19/95.......................... 11,300,000 11,265,705
CXC, Inc., 5.75%, 2/10/95................................................................. 10,000,000 9,936,111
CXC, Inc., 5.98%, 2/1/95(2)............................................................... 20,000,000 19,897,011
CXC, Inc., 6.15%, 2/16/95................................................................. 15,000,000 14,882,125
Falcon Asset Securitization Corp., 6.10%, 1/10/95(2)...................................... 5,025,000 5,017,337
Falcon Asset Securitization Corp., 6.10%, 1/20/95(2)...................................... 5,400,000 5,382,615
Falcon Asset Securitization Corp., 6.10%, 1/23/95(2)...................................... 5,525,000 5,504,404
Falcon Asset Securitization Corp., 6.12%, 2/10/95(2)...................................... 15,000,000 14,898,000
Falcon Asset Securitization Corp., 6.15%, 2/6/95(2)....................................... 15,000,000 14,907,750
First Deposit Master Trust 1993-3, 5.375%, 1/17/95(2)(3).................................. 4,900,000 4,888,294
First Deposit Master Trust 1993-3, 5.42%, 1/23/95(2)(3)................................... 5,900,000 5,880,458
First Deposit Master Trust 1993-3, 5.08%, 2/8/95(2)(3).................................... 15,000,000 14,919,567
Preferred Receivables Funding Corp., 5.625%-5.70%, 1/9/95................................. 29,775,000 29,737,535
Preferred Receivables Funding Corp., 5.65%, 1/10/95....................................... 10,000,000 9,985,875
Preferred Receivables Funding Corp., 5.80%, 2/14/95....................................... 30,000,000 29,787,333
Riverwoods Funding Corp., 6%, 1/11/95..................................................... 10,000,000 9,983,333
Riverwoods Funding Corp., 6%, 1/9/95...................................................... 10,000,000 9,986,667
Sheffield Receivables Corp., 5.98%, 2/1/95................................................ 20,000,000 19,897,011
</TABLE>
3
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
SHORT-TERM NOTES (CONTINUED)
ASSET-BACKED (CONTINUED)
SMM Trust 1994-A, 6.425%, 3/17/95(1)(2)(3)................................................ $ 35,000,000 $ 34,997,407
Structured Enhanced Return Trust 1994 Series A-07, 5.87%, 1/4/95(1)(2)(3)................. 10,000,000 9,998,997
Structured Enhanced Return Trust 1994 Series A-11, 5.865%, 1/3/95(1)(2)(3)................ 10,000,000 10,000,000
--------------
412,156,144
--------------
BANKS -- 2.7%
Chase Manhattan Corp., 5.36%, 1/13/95..................................................... 20,000,000 19,964,267
Chase Manhattan Corp., 5.40%, 1/17/95..................................................... 10,000,000 9,976,000
Fleet Financial Group, Inc., 6.08%, 1/17/95............................................... 15,000,000 14,959,467
NationsBank Corp., 5.84%, 2/15/95......................................................... 10,000,000 9,927,000
PNC Funding Corp., 5.08%, 3/2/95.......................................................... 25,000,000 24,788,333
--------------
79,615,067
--------------
BEVERAGES: ALCOHOLIC -- 0.6%
Seagram (Joseph E.) & Sons, Inc., 5.90%, 2/24/95(2)....................................... 18,000,000 17,840,700
--------------
BEVERAGES: SOFT DRINKS -- 1.9%
Coca-Cola Enterprises, Inc., 5.55%, 1/4/95(2)............................................. 15,000,000 14,993,062
Coca-Cola Enterprises, Inc., 5.80%, 2/13/95(2)............................................ 30,000,000 29,792,167
Coca-Cola Enterprises, Inc., 6%, 1/30/95(2)............................................... 10,000,000 9,951,667
--------------
54,736,896
--------------
BROKER/DEALERS -- 15.1%
Bear Stearns Cos., Inc., 5.79%, 1/3/95(1)................................................. 10,000,000 10,000,000
Bear Stearns Cos., Inc., 5.97%, 1/4/95(1)................................................. 10,000,000 10,000,000
Bear Stearns Cos., Inc., 6.178%, 1/3/95(1)................................................ 17,000,000 17,000,000
Bear Stearns Cos., Inc., 6.244%, 1/9/95(1)................................................ 5,000,000 5,000,000
BT Securities Corp., 5.92%, 1/4/95(1)..................................................... 10,000,000 10,000,000
CS First Boston Group, Inc., 5.10%, 3/8/95(2)............................................. 10,000,000 9,906,500
CS First Boston Group, Inc., 5.82%, 1/31/95............................................... 10,000,000 9,951,500
CS First Boston Group, Inc., 6.12%, 2/8/95................................................ 25,000,000 24,838,500
Dean Witter, Discover & Co., 5.16%, 1/17/95............................................... 5,000,000 4,988,533
Dean Witter, Discover & Co., 5.35%, 1/12/95............................................... 25,000,000 24,959,132
Goldman Sachs Group L.P., 5.08%, 3/1/95................................................... 17,000,000 16,858,466
Goldman Sachs Group L.P., 5.685%, 1/4/95(1)(2)(3)(4)...................................... 10,000,000 10,000,000
Goldman Sachs Group L.P., 5.738%, 1/13/95(1)(2)(3)(4)..................................... 10,000,000 10,000,000
Goldman Sachs Group L.P., 5.92%, 1/4/95(1)(2)(3).......................................... 5,000,000 5,000,000
Goldman Sachs Group L.P., 6.145%, 1/13/95(1)(2)(3)........................................ 25,000,000 25,000,000
Goldman Sachs Group L.P., 6.375%, 3/21/95(1)(2)(3)........................................ 28,000,000 28,000,000
</TABLE>
4
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
SHORT-TERM NOTES (CONTINUED)
BROKER/DEALERS (CONTINUED)
Goldman Sachs Group L.P., 6.575%, 3/8/95(1)(2)(3)......................................... $ 15,000,000 $ 15,011,215
Lehman Brothers Holdings, Inc., 5.61%, 1/12/95............................................ 11,000,000 11,000,000
Lehman Brothers Holdings, Inc., 6.15%, 1/3/95(1).......................................... 10,000,000 10,000,000
Lehman Brothers Holdings, Inc., 6.22%, 1/3/95(1).......................................... 127,900,000 127,900,000
Morgan Stanley Group, Inc., 5.49%, 1/3/95(1).............................................. 59,700,000 59,700,000
--------------
445,113,846
--------------
BUILDING MATERIALS GROUP -- 0.3%
Compagnie de Saint-Gobain SA, 5.08%, 3/1/95............................................... 10,000,000 9,916,744
--------------
COMMERCIAL FINANCE -- 1.3%
CIT Group Holdings, Inc., 6.309%, 1/11/95(1)(4)........................................... 38,500,000 38,500,000
--------------
CONGLOMERATES -- 4.5%
ITT Corp., 5.87%, 2/15/95................................................................. 25,000,000 24,816,563
ITT Corp., 6.02%, 2/1/95(2)............................................................... 10,000,000 9,948,161
ITT Corp., 6.15%, 2/6/95(2)............................................................... 10,000,000 9,938,500
ITT Corp., 6.22%, 2/6/95.................................................................. 10,000,000 9,937,800
Mitsubishi International Corp., 5.50%, 1/24/95............................................ 5,000,000 4,982,431
Mitsubishi International Corp., 5.60%, 2/1/95............................................. 5,000,000 4,975,889
Mitsubishi International Corp., 5.82%, 2/17/95............................................ 12,000,000 11,908,820
Mitsubishi International Corp., 5.85%, 2/21/95............................................ 21,700,000 21,520,160
Pacific Dunlop Ltd., 5.12%, 2/21/95(2).................................................... 25,000,000 24,818,667
Pacific Dunlop Ltd., 5.12%, 2/28/95(2).................................................... 10,000,000 9,917,511
--------------
132,764,502
--------------
CONSUMER FINANCE (PERSONAL LOANS) -- 3.9%
Sears Roebuck Acceptance Corp., 5.10%, 1/23/95............................................ 21,000,000 20,934,550
Sears Roebuck Acceptance Corp., 5.83%, 1/31/95............................................ 35,000,000 34,829,958
Sears Roebuck Acceptance Corp., 5.83%, 2/8/95............................................. 25,000,000 24,846,153
Sears Roebuck Acceptance Corp., 5.90%, 2/6/95............................................. 35,000,000 34,793,500
--------------
115,404,161
--------------
DIVERSIFIED FINANCE -- 11.6%
Ford Motor Credit Co., 5.80%-6.13%, 2/6/95................................................ 72,500,000 72,071,250
Ford Motor Credit Co., 6.05%, 1/30/95..................................................... 10,000,000 9,951,264
General Electric Capital Corp., 5.82%, 2/21/95............................................ 15,000,000 14,876,325
General Motors Acceptance Corp., 5.81%, 2/13/95........................................... 15,000,000 14,895,904
General Motors Acceptance Corp., 5.92%, 1/30/95........................................... 30,000,000 29,856,933
</TABLE>
5
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
SHORT-TERM NOTES (CONTINUED)
DIVERSIFIED FINANCE NOTES (CONTINUED)
General Motors Acceptance Corp., 6.10%, 1/25/95........................................... $ 18,000,000 $ 17,926,800
General Motors Acceptance Corp., 6.15%, 2/3/95............................................ 35,000,000 34,802,688
General Motors Acceptance Corp., 6.20%, 2/9/95............................................ 10,000,000 9,932,833
General Motors Acceptance Corp., 6.65%, 2/10/95........................................... 16,500,000 16,523,216
Household Finance Corp., 6.25%, 1/3/95(1)................................................. 15,000,000 14,998,733
ITT Financial Corp., 5.45%-5.52%, 1/17/95................................................. 18,000,000 17,956,151
ITT Financial Corp., 5.83%, 2/15/95....................................................... 45,000,000 44,672,062
ITT Financial Corp., 5.94%, 2/1/95........................................................ 25,000,000 24,872,125
ITT Financial Corp., 6.125%, 1/27/95...................................................... 9,000,000 8,960,188
Transamerica Finance Corp., 5.10%, 2/3/95................................................. 10,000,000 9,953,250
--------------
342,249,722
--------------
ELECTRIC COMPANIES -- 2.6%
Central & Southwest Corp., 5.98%, 2/8/95.................................................. 10,000,000 9,936,878
Central & Southwest Corp., 6.12%, 2/13/95................................................. 15,000,000 14,890,350
Central & Southwest Corp., 6.15%, 2/2/95.................................................. 20,000,000 19,890,667
Vattenfall Treasury, Inc., guaranteed by Vattenfall AB, 5.80%, 1/30/95.................... 7,000,000 6,967,294
Vattenfall Treasury, Inc., guaranteed by Vattenfall AB, 5.80%, 2/21/95.................... 25,000,000 24,794,583
--------------
76,479,772
--------------
FACTORING -- 3.4%
CSW Credit, Inc., 5.70%, 1/9/95........................................................... 20,000,000 19,974,667
CSW Credit, Inc., 6.08%, 1/31/95.......................................................... 15,000,000 14,924,000
CSW Credit, Inc., 6.10%, 2/10/95.......................................................... 15,000,000 14,898,333
CSW Credit, Inc., 6.10%-6.17%, 2/13/95.................................................... 45,000,000 44,670,453
CSW Credit, Inc., 6.12%, 2/14/95.......................................................... 7,000,000 6,947,640
--------------
101,415,093
--------------
FINANCIAL SERVICES: MISCELLANEOUS -- 3.8%
Countrywide Funding Corp., 6.10%, 1/4/95.................................................. 15,000,000 14,992,375
Countrywide Funding Corp., 6.20%, 1/3/95.................................................. 9,000,000 8,996,900
Countrywide Funding Corp., 6.30%, 1/5/95.................................................. 65,000,000 64,954,500
Fleet Mortgage Group, Inc., 6.10%, 1/20/95................................................ 25,000,000 24,919,514
--------------
113,863,289
--------------
HEALTHCARE: MISCELLANEOUS -- 2.0%
American Home Products, 5.95%, 2/21/95(2)................................................. 35,000,000 34,704,979
Sherwood Medical Co., 5.95%, 2/21/95(2)................................................... 25,000,000 24,789,271
--------------
59,494,250
--------------
</TABLE>
6
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
SHORT-TERM NOTES (CONTINUED)
HOUSEWARES -- 1.4%
Newell Co., 5.82%, 2/17/95(2)............................................................. $ 25,000,000 $ 24,810,041
Newell Co., 6.15%, 1/11/95(2)............................................................. 18,400,000 18,368,567
--------------
43,178,608
--------------
INSURANCE -- 8.7%
Internationale Nederlanden Verzekeringen, NV, guaranteeing commercial paper of:
Internationale Nederlanden U.S. Insurance Holdings, Inc., 5.80%, 1/25/95................ 10,950,000 10,907,660
Internationale Nederlanden NV, guaranteeing commercial paper of:
Internationale Nederlanden U.S. Insurance Holdings, Inc., 6%, 1/30/95................... 10,000,000 9,951,667
Pacific Mutual Life Insurance Co., 5.633%, 1/3/95(1)(2)(3)(4)............................. 50,000,000 50,000,000
Protective Life Insurance Co., 6.15%, 1/3/95(1)(2)(4)..................................... 20,000,000 20,000,000
Protective Life Insurance Co., 6.31%, 1/9/95(2)(4)........................................ 20,000,000 20,000,000
Sun Life Insurance Co., 6.275%, 1/4/95(1)(4).............................................. 145,000,000 145,000,000
--------------
255,859,327
--------------
LEASE FINANCING -- 4.1%
International Lease Finance Corp., 5.15%, 1/17/95......................................... 10,000,000 9,977,111
International Lease Finance Corp., 5.75%, 2/8/95.......................................... 17,000,000 16,896,819
International Lease Finance Corp., 5.82%, 2/22/95......................................... 10,000,000 9,915,933
International Lease Finance Corp., 5.87%, 2/1/95.......................................... 20,000,000 19,898,906
International Lease Finance Corp., 6%, 2/3/95............................................. 10,000,000 9,945,000
Sanwa Business Credit Corp., 5.74%, 1/3/95(1)............................................. 15,000,000 15,000,000
Sanwa Business Credit Corp., 5.90%, 1/30/95............................................... 10,000,000 9,952,472
Sanwa Business Credit Corp., 5.97%, 2/24/95............................................... 10,000,000 9,910,450
Sanwa Business Credit Corp., 6.10%, 1/19/95............................................... 5,000,000 4,984,750
Sanwa Business Credit Corp., 6.12%, 2/3/95................................................ 5,000,000 4,971,950
Sanwa Business Credit Corp., 6.125%, 2/7/95............................................... 10,000,000 9,937,049
--------------
121,390,440
--------------
MANUFACTURING: DIVERSIFIED INDUSTRIALS -- 0.6%
Bowater PLC, 5.40%, 1/11/95(2)............................................................ 11,000,000 10,983,500
Hanson Finance (UK) PLC, guaranteed by Hanson PLC, 5.42%, 1/13/95......................... 7,000,000 6,987,353
--------------
17,970,853
--------------
RETAIL STORES: DEPARTMENT, GENERAL AND SPECIALTY -- 0.4%
St. Michael Finance Ltd., guaranteed by Marks & Spencer, PLC, 5.09%, 2/28/95.............. 11,045,000 10,954,425
--------------
</TABLE>
7
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
SHORT-TERM NOTES (CONTINUED)
TECHNOLOGY -- 0.5%
Electronic Data Systems Corp., 5.52%, 1/17/95............................................ $ 6,000,000 $ 5,985,280
Electronic Data Systems Corp., 5.63%, 1/24/95............................................ 4,000,000 3,985,612
Electronic Data Systems Corp., 5.77%, 2/15/95............................................ 5,000,000 4,963,938
--------------
14,934,830
--------------
TELECOMMUNICATIONS -- 3.4%
NYNEX Corp., 5.10%, 1/17/95.............................................................. 10,000,000 9,977,333
NYNEX Corp., 5.60%, 1/20/95.............................................................. 5,000,000 4,985,222
NYNEX Corp., 5.82%, 2/13/95.............................................................. 30,000,000 29,791,450
NYNEX Corp., 5.85%-6.12%, 2/16/95........................................................ 56,000,000 55,574,219
--------------
100,328,224
--------------
TOBACCO -- 0.7%
American Brands, Inc., 5.52%, 1/18/95.................................................... 5,000,000 4,986,967
American Brands, Inc., 5.58%, 1/23/95.................................................... 15,000,000 14,948,850
--------------
19,935,817
--------------
Total Short-Term Notes (Cost $2,584,102,710)............................................................. 2,584,102,710
--------------
U.S. GOVERNMENT OBLIGATIONS -- 5.6%
Small Business Administration, 5.625%-10.125%, 1/1/95(1) (Cost $166,916,983)............. 161,581,146 166,916,983
--------------
Total Investments, at Value (Cost $2,986,729,141)............................................ 101.0% 2,986,729,141
Liabilities in Excess of Other Assets........................................................ (1.0) (28,496,978)
----- --------------
Net Assets................................................................................... 100.0% $2,958,232,163
----- --------------
----- --------------
</TABLE>
- ------------
1. Variable rate security. The interest rate, which is based on specific, or an
index of, market interest rates, is subject to change periodically and is the
effective rate on December 31, 1994.
2. Security purchased in private placement transaction, without registration
under the Securities Act of 1933 (the Act). The securities are carried at
amortized cost, and amount to $707,773,403, or 23.9% of the Fund's net
assets.
3. In addition to being restricted, the security is considered illiquid by
virtue of the absence of a readily available market or because of legal or
contractual restrictions on resale, illiquid securities amount to
$223,695,938, or 7.6% of the Fund's net assets, at December 31, 1994. The
Fund may not invest more than 10% of its net assets (determined at the time
of purchase) in illiquid securities.
4. Put obligation redeemable at full face value on the date reported.
See accompanying Notes to Financial Statements.
8
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES December 31, 1994
Daily Cash Accumulation Fund, Inc.
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $2,986,729,141) -- see accompanying statement........................ $2,986,729,141
Cash.............................................................................................. 6,444,695
Receivables:
Interest and principal paydowns................................................................. 8,380,640
Shares of capital stock sold.................................................................... 533,647
Other............................................................................................. 199,523
--------------
Total assets................................................................................. 3,002,287,646
--------------
LIABILITIES:
Payables and other liabilities:
Shares of capital stock redeemed................................................................ 42,240,559
Service plan fees -- Note 3.................................................................... 265,121
Other........................................................................................... 1,549,803
--------------
Total liabilities............................................................................ 44,055,483
--------------
NET ASSETS........................................................................................ $2,958,232,163
--------------
--------------
COMPOSITION OF NET ASSETS:
Par value of shares of capital stock.............................................................. $ 295,813,146
Additional paid-in capital........................................................................ 2,662,318,310
Accumulated net realized gain (loss) from investment transactions................................. 100,707
--------------
NET ASSETS -- Applicable to 2,958,131,456 shares of capital stock outstanding.................... $2,958,232,163
--------------
--------------
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE.................................... $1.00
</TABLE>
See accompanying Notes to Financial Statements.
9
<PAGE>
STATEMENT OF OPERATIONS For the Year Ended December 31, 1994
Daily Cash Accumulation Fund, Inc.
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest........................................................................................... $147,806,217
------------
EXPENSES:
Management fees -- Note 3......................................................................... 11,918,801
Service plan fees -- Note 3....................................................................... 6,661,667
Transfer and shareholder servicing agent fees -- Note 3........................................... 5,076,668
Shareholder reports................................................................................ 386,525
Custodian fees and expenses........................................................................ 310,880
Registration and filing fees....................................................................... 163,365
Legal and auditing fees............................................................................ 66,104
Directors' fees and expenses....................................................................... 43,404
Other.............................................................................................. 231,806
------------
Total expenses................................................................................ 24,859,220
------------
Less reimbursement of expenses by Centennial Asset Management Corporation -- Note 3............... (125,619)
------------
Net expenses....................................................................................... 24,733,601
NET INVESTMENT INCOME (LOSS)....................................................................... 123,072,616
NET REALIZED GAIN (LOSS) ON INVESTMENTS............................................................ (27,746)
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................................... $123,044,870
------------
------------
</TABLE>
See accompanying Notes to Financial Statements.
10
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------
1994 1993
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)............................................... $ 123,072,616 $ 105,100,335
Net realized gain (loss) on investments.................................... (27,746) 9,018
-------------- --------------
Net increase (decrease) in net assets resulting from operations.......... 123,044,870 105,109,353
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS................................ (123,088,801) (105,233,465)
CAPITAL STOCK TRANSACTIONS:
Net increase (decrease) in net assets resulting from capital stock
transactions -- Note 2................................................... (630,590,211) (472,064,008)
-------------- --------------
NET ASSETS
Total increase (decrease).................................................. (630,634,142) (472,188,120)
Beginning of period........................................................ 3,588,866,305 4,061,054,425
-------------- --------------
End of period.............................................................. $2,958,232,163 $3,588,866,305
-------------- --------------
-------------- --------------
</TABLE>
See accompanying Notes to Financial Statements.
11
<PAGE>
FINANCIAL HIGHLIGHTS
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- -----
Income from investment
operations -- net investment income
and net realized gain on
investments.......................... .04(1) .03 .03 .06 .08 .08 .07 .06
Dividends and distributions to
shareholders......................... (.04) (.03) (.03) (.06) (.08) (.08) (.07) (.06)
----- ----- ----- ----- ----- ----- ----- -----
Net asset value, end of period......... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- -----
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
millions)............................ $2,958 $3,589 $4,061 $5,208 $5,025 $4,920 $3,128 $2,555
Average net assets (in millions)....... $3,378 $3,940 $4,760 $5,434 $4,849 $4,112 $2,809 $2,541
Number of shares outstanding at end of
period (in millions)................. 2,958 3,589 4,061 5,208 5,024 4,920 3,128 2,555
Ratios to average net assets:
Net investment income................ 3.64% 2.67% 3.50% 5.64% 7.61% 8.58% 7.01% 6.10%
Expenses............................. .73%(1) .74% .70% .67% .68% .71% .77% .78%
<CAPTION>
1986 1985
------ ------
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period... $1.00 $1.00
----- -----
Income from investment
operations -- net investment income
and net realized gain on
investments.......................... .06 .07
Dividends and distributions to
shareholders......................... (.06) (.07)
----- -----
Net asset value, end of period......... $1.00 $1.00
----- -----
----- -----
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
millions)............................ $2,635 $2,311
Average net assets (in millions)....... $2,530 $2,071
Number of shares outstanding at end of
period (in millions)................. 2,635 2,311
Ratios to average net assets:
Net investment income................ 6.11% 7.46%
Expenses............................. .78% .80%
</TABLE>
1. Net investment income would have been $.04 per share absent the voluntary
expense limitation, resulting in an expense ratio of .74%.
See accompanying Notes to Financial Statements.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Daily Cash Accumulation Fund, Inc.
1. SIGNIFICANT ACCOUNTING POLICIES
Daily Cash Accumulation Fund, Inc. (the Fund) is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund's investment advisor is Centennial Asset Management
Corporation (the Manager), a subsidiary of Oppenheimer Management Corporation
(OMC). The following is a summary of significant accounting policies
consistently followed by the Fund.
Investment Valuation -- Portfolio securities are valued on the basis of
amortized cost, which approximates market value.
Federal Income Taxes -- The Fund intends to continue to comply with provisions
of the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders. Therefore, no federal
income tax provision is required.
Distributions to Shareholders -- The Fund intends to declare dividends from net
investment income each day the New York Stock Exchange is open for business and
pay such dividends monthly. To effect its policy of maintaining a net asset
value of $1.00 per share, the Fund may withhold dividends or make distributions
of net realized gains.
Other -- Investment transactions are accounted for on the date the investments
are purchased or sold (trade date). Realized gains and losses on investments are
determined on an identified cost basis, which is the same basis used for federal
income tax purposes.
2. CAPITAL STOCK
The Fund has authorized 15,000,000,000 shares of $.10 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1994 December 31, 1993
--------------------------------- ---------------------------------
Shares Amount Shares Amount
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold.......................... 7,074,792,010 $ 7,074,792,010 9,243,874,957 $ 9,243,874,957
Dividends and
distributions
reinvested.................. 120,864,868 120,864,868 103,269,781 103,269,781
Redeemed...................... (7,826,247,089) (7,826,247,089) (9,819,208,746) (9,819,208,746)
-------------- --------------- -------------- ---------------
Net decrease............. (630,590,211) $ (630,590,211) (472,064,008) $ (472,064,008)
-------------- --------------- -------------- ---------------
-------------- --------------- -------------- ---------------
</TABLE>
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of .45% on the
first $500 million of net assets with a reduction of .025% on each $500 million
thereafter, to .25% on net assets in excess of $4 billion. The Manager has
agreed to reimburse the Fund if aggregate expenses (with specified exceptions)
exceed the most stringent applicable regulatory limit on Fund expenses. A
voluntary undertaking to waive a portion of its management fee to ensure that
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
the Fund's management fee does not exceed .35% of average annual net assets was
terminated December 1, 1994. In addition, the Manager has voluntarily undertaken
to assume Trust expenses to the level needed to maintain a seven-day yield at
least equal to, and a dividend equal to, that of Centennial Money Market Trust
Fund another registered investment company advised by the Manager effective
December 1, 1994.
Shareholder Services, Inc. (SSI), a subsidiary of OMC, is the transfer and
shareholder servicing agent for the Fund, and for other registered investment
companies. SSI's total costs of providing such services are allocated ratably to
these companies.
Under an approved plan of distribution, the Fund may expend up to .20% of its
net assets annually to reimburse certain securities dealers and other financial
institutions and organizations for costs incurred in distributing Fund shares.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION (Unaudited)
Daily Cash Accumulation Fund, Inc.
In early 1995, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1994. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal year ended December 31,
1994 are eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
14
<PAGE>
INDEPENDENT AUDITORS' REPORT
Daily Cash Accumulation Fund, Inc.
The Board of Directors and Shareholders of Daily Cash Accumulation Fund,
Inc.:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Daily Cash Accumulation Fund, Inc., as of
December 31, 1994, the related statement of operations for the year then ended,
the statements of changes in net assets for the years ended December 31, 1994
and 1993, and the financial highlights for the period January 1, 1985 to
December 31, 1994. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
at December 31, 1994 by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Daily Cash
Accumulation Fund, Inc., at December 31, 1994, the results of its operations,
the changes in its net assets, and the financial highlights for the respective
stated periods, in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
January 23, 1995
15
<PAGE>
DAILY CASH ACCUMULATION FUND, INC.
Officers and Directors
James C. Swain, Chairman and
Chief Executive Officer
Robert G. Avis, Director
William A. Baker, Director
Charles Conrad, Jr., Director
Jon S. Fossel, Director and President
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
Andrew J. Donohue, Vice President
Dorothy G. Warmack, Vice President
Carol E. Wolf, Vice President
Arthur J. Zimmer, Vice President
George C. Bowen, Vice President,
Secretary and Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
Investment Advisor and Distributor
Centennial Asset Management
Corporation
Transfer and Shareholder Servicing Agent
Shareholder Services, Inc.
Custodian of Portfolio Securities
Citibank, N.A.
Independent Auditors
Deloitte & Touche LLP
Legal Counsel
Myer, Swanson & Adams, P.C.
This is a copy of a report to shareholders of Daily
Cash Accumulation Fund, Inc. This report must be
preceded or accompanied by a Prospectus of Daily Cash
Accumulation Fund, Inc. For material information
concerning the Fund, see the Prospectus.
For shareholder servicing, call:
1-800-525-7048 (in U.S.)
303-671-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5270
Denver, CO 80217-5270
RA0140.001.0295 ['Recycled' Logo] Printed on recycled paper.
1994 ANNUAL REPORT
DAILY CASH
ACCUMULATION
FUND, INC.
DECEMBER 31, 1994
