<PAGE> 1
1996 SEMIANNUAL REPORT
DAILY CASH
ACCUMULATION
FUND, INC.
JUNE 30, 1996
<PAGE> 2
Dear Shareholder:
The six months ended June 30, 1996 were defined by changing beliefs about the
direction of the economy which, in turn, has had both positive and negative
effects on the securities markets.
Toward the end of 1995, most investors expected that the economy would continue
to show signs of slowing. In fact, many were convinced that the economy was
moving toward recession. Given the prevailing sentiment, it wasn't a surprise
when the Federal Reserve lowered interest rates in an effort to prolong the
economic expansion. The goal: a slow but steady and sustainable rate of economic
growth that would diminish the possibility of recession. The impact of lower
interest rates on both the stock and bond markets was profound. The Dow Jones
Industrial Average reached an all time high, while most sectors of the bond
market chalked up double digit returns.
But in mid-February, the federal government issued a report on job growth that
radically altered investor perceptions. Suddenly, investors believed that the
economy was heating up and inflation was around the corner. In the weeks that
followed, the bond market sold off sharply, as long-term interest rates spiked
upward, with the benchmark 30-year Treasury yield moving above seven percent. As
a result, the bond market weakened between February and June.
Though this market environment has created some concerns for both stock and bond
investors, rising interest rates are good for investors in short-term
securities. Because the portfolio is structured to capture as much yield as
possible without taking on any additional credit risk, the Fund continues to
invest in short maturity money market securities -- especially during the
current market. Although shorter-term securities require us to reinvest the
proceeds we receive upon maturity more often, in a rising rate environment that
means moving into securities issued at higher rates.
For the six months ended June 30, 1996, the Fund's compounded annualized yield
was 4.96%. Its seven-day yields with and without compounding for the six-month
period ended June 30, 1996 were 4.85% and 4.74% respectively. (1)
As we move through 1996, the strength of the economy continues to be an
uncertainty. However, with higher gasoline and agricultural prices there could
be some upward pressure on inflation over the next several months. As such, we
continue to look for opportunities to add to the portfolio's yield, while
keeping the Fund's average maturity shorter than other money funds and remaining
alert to the possibility that interest rates may move higher or lower in the
coming months.
<PAGE> 3
We are pleased to be able to maintain a competitive yield, as well as share
price stability, in light of the dramatic changes that have taken place during
the past six months. Thank you for your confidence in Daily Cash Accumulation
Fund, Inc. We look forward to helping you reach your financial goals.
Sincerely,
/s/ James C. Swain
James C. Swain
Chairman
Daily Cash Accumulation Fund, Inc.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
President
Daily Cash Accumulation Fund, Inc.
July 22, 1996
An investment in the Fund is neither insured nor guaranteed by the U.S.
Government and there can be no assurance that the Fund will be able to maintain
a stable net asset value of $1.00 per share.
1. Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
<PAGE> 4
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited)
DAILY CASH ACCUMULATION FUND, INC.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
CERTIFICATES OF DEPOSIT - 5.4%
DOMESTIC CERTIFICATES OF DEPOSIT - 1.3%
Bank of New York, 5.07%, 8/27/96 ..................... $ 10,000,000 $ 10,000,000
LaSalle National Bank:
5%, 8/19/96 ....................................... 5,000,000 5,000,000
5%, 8/7/96 ........................................ 5,000,000 5,000,000
5.05%, 8/26/96 .................................... 5,000,000 5,000,000
5.35%, 11/5/96 .................................... 5,000,000 5,000,000
5.35%, 7/15/96 .................................... 10,000,000 10,000,000
5.38%, 8/5/96 ..................................... 5,000,000 5,000,000
------------
45,000,000
------------
EURODOLLAR CERTIFICATES OF DEPOSIT - 1.7%
Abbey National PLC, 5.01%, 8/1/96 .................... 10,000,000 10,000,253
Deutsche Bank, 5%, 8/12/96 ........................... 25,000,000 24,998,376
Rabobank Nederland, 5.02%, 8/22/96 ................... 5,000,000 4,999,789
Societe Generale, 5.10%, 7/26/96 ..................... 20,000,000 20,000,898
------------
59,999,316
------------
YANKEE CERTIFICATES OF DEPOSIT - 2.4%
ABN Amro Bank, 5.03%, 8/20/96 ........................ 10,000,000 10,000,136
Deutsche Bank, 5.06%, 8/19/96 ........................ 10,000,000 10,000,000
Dresdner Bank, 5.18%, 11/22/96 ....................... 13,000,000 12,977,092
Societe Generale:
5.05%, 8/23/96 .................................... 10,000,000 9,999,374
5.07%, 8/6/96 ..................................... 5,000,000 5,000,241
5.08%, 8/21/96 .................................... 25,000,000 25,000,345
Swiss Bank Corp., 5.32%, 7/12/96 ..................... 10,000,000 10,000,000
------------
82,977,188
------------
Total Certificates of Deposit (Cost $187,976,504) .... 187,976,504
============
</TABLE>
3
<PAGE> 5
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited) (Continued)
DAILY CASH ACCUMULATION FUND, INC.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- -----------
<S> <C> <C>
DIRECT BANK OBLIGATIONS - 13.6%
Abbey National North America Corp., 4.92%, 8/23/96 ................................. $ 7,220,000 $ 7,167,703
ABN Amro Bank North America Finance, Inc.:
4.89%, 8/6/96 .................................................................... 5,000,000 4,975,550
4.90%, 7/8/96 .................................................................... 20,000,000 19,980,944
5.10%, 7/24/96 ................................................................... 10,000,000 9,967,417
5.35%, 11/12/96 .................................................................. 10,000,000 9,800,936
Bank of Scotland:
5.10%, 7/25/96 ................................................................... 25,000,000 24,915,000
5.35%, 10/7/96 ................................................................... 10,000,000 9,854,361
Bank One, Cleveland, guaranteeing commercial paper of Capital One Funding Corp.:
Series 1995F, 5.50%, 7/5/96(1)(2)(3) ............................................. 10,800,000 10,800,000
Series 1996C, 5.50%, 7/5/96(1)(2)(3) ............................................. 9,000,000 9,000,000
Barclays Bank Canada, 4.92%, 8/21/96 ............................................... 20,000,000 19,860,600
Barclays Bank PLC, guaranteeing commercial paper of:
Banco Nacional de Mexico, SNC S.A. - Series A, 4.96%, 7/17/96 ................... 5,000,000 4,988,156
Banco Nacional de Mexico, SNC S.A. - Series A, 5.35%, 7/2/96 .................... 10,000,000 9,998,514
Banco Real S.A. - Grand Cayman Branch, 5.36%, 10/7/96 ........................... 5,000,000 4,927,044
Petroleo Brasileiro, S.A. - Petrobras, 4.96%, 8/16/96 ........................... 10,000,000 9,936,622
Petroleo Brasileiro, S.A. - Petrobras, 4.96%, 8/5/96 ............................ 5,000,000 4,975,889
Petroleo Brasileiro, S.A. - Petrobras, 5.01%, 8/15/96 ........................... 10,000,000 9,937,375
Petroleo Brasileiro, S.A. - Petrobras, 5.18%, 7/19/96 ........................... 5,000,000 4,987,050
Bayerische Vereinsbank AG, guaranteeing commercial paper of
Galicia Funding Corp. - Series B, 5.35%, 10/7/96(4) ................................ 5,000,000 4,927,181
Credit Suisse, guaranteeing commercial paper of:
Cemex, S.A. de C.V. - Series A, 5.31%, 7/25/96 .................................. 15,000,000 14,946,900
Cemex, S.A. de C.V. - Series A, 5.35%, 7/18/96 .................................. 5,000,000 4,987,439
Cemex, S.A. de C.V. - Series B, 5.40%, 8/23/96 .................................. 15,000,000 14,880,750
Daewoo International Corp., 5.05%, 8/29/96 ...................................... 5,000,000 4,958,618
PEMEX - Series B, 5.30%, 8/6/96 ................................................. 15,000,000 14,920,500
Queensland Alumina Ltd., 5.30%, 7/26/96 ......................................... 5,000,000 4,981,597
Dresdner U.S. Finance, Inc., 5.03%, 8/26/96 ........................................ 45,000,000 44,653,578
FCC National Bank:
5.36%, 12/27/96(1) ............................................................... 30,000,000 29,991,434
5.47%, 10/7/96 ................................................................... 5,000,000 5,000,000
First National Bank of Boston:
5.35%, 7/3/96 .................................................................... 10,000,000 10,000,000
5.37%, 11/13/96(1) ............................................................... 10,000,000 9,998,496
5.53%, 9/16/96 ................................................................... 5,000,000 5,000,000
5.65%, 8/28/96(1) ................................................................ 10,000,000 10,000,000
5.88%, 10/30/96(1) ............................................................... 10,000,000 10,000,000
</TABLE>
4
<PAGE> 6
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited) (Continued)
DAILY CASH ACCUMULATION FUND, INC.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- -----------
<S> <C> <C>
DIRECT BANK OBLIGATIONS (CONTINUED)
Huntington National Bank:
5.09%, 8/21/96 ........................................................ $ 7,000,000 $ 7,000,000
5.33%, 7/10/96 ........................................................ 10,000,000 10,000,000
5.52%, 11/13/96(1) .................................................... 10,000,000 10,000,000
5.33%, 8/29/96(1) ..................................................... 10,000,000 9,999,024
National Westminster Bank of Canada:
4.90%, 7/19/96 ........................................................ 10,000,000 9,975,500
5.18%, 7/8/96 ......................................................... 7,000,000 6,992,650
Societe Generale North America, Inc.:
4.89%, 8/8/96 ......................................................... 10,000,000 9,948,383
4.92%, 8/23/96 ........................................................ 5,000,000 4,963,783
4.95%, 8/22/96 ........................................................ 15,000,000 14,892,858
5.10%, 7/22/96 ........................................................ 5,000,000 4,985,125
Societe Generale, guaranteeing commercial paper of:
Banco Nacional de Comercio Exterior, SNC - Series A, 5.17%, 7/15/96 ... 5,000,000 4,989,908
Banco Nacional de Comercio Exterior, SNC - Series B, 5.20%, 7/11/96 ... 10,000,000 9,985,556
Nacionale Financiera, SNC - Series A, 5.30%, 8/28/96 .................. 5,000,000 4,957,306
------------ ------------
Total Direct Bank Obligations (Cost $474,009,747) ....................... 474,009,747
------------
SHORT-TERM NOTES - 79.8%
BANKS - 3.0%
Barnett Banks, Inc., 5.36%, 7/1/96 ...................................... 24,300,000 24,300,000
Chemical Banking Corp.:
4.90%, 7/15/96 ........................................................ 5,000,000 4,990,472
4.93%, 8/15/96 ........................................................ 10,000,000 9,938,375
4.94%, 8/23/96 ........................................................ 25,000,000 24,818,181
CoreStates Capital Corp.:
5.40%, 10/25/96(1) .................................................... 5,000,000 5,000,000
5.84%, 8/13/96(1) ..................................................... 10,000,000 10,000,000
Fleet Financial Group, Inc., 5.34%, 7/19/96 ............................. 20,000,000 19,946,600
J.P. Morgan and Co., 5.02%, 9/6/96 ...................................... 5,000,000 4,953,286
------------
103,946,914
------------
BEVERAGES - 2.2%
Coca-Cola Enterprises, Inc.:
5.30%, 7/19/96(4) ..................................................... 19,450,000 19,398,458
5.30%, 9/4/96(4) ...................................................... 5,000,000 4,952,153
5.32%, 8/12/96(4) ..................................................... 10,000,000 9,937,933
5.35%, 8/5/96(4) ...................................................... 10,000,000 9,947,986
5.37%, 7/11/96(4) ..................................................... 30,000,000 29,955,278
------------
74,191,808
------------
</TABLE>
5
<PAGE> 7
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited) (Continued)
DAILY CASH ACCUMULATION FUND, INC.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- -----------
<S> <C> <C>
BROKER/DEALERS - 8.9% CS First Boston, Inc.:
5.10%, 7/12/96(4) ............................... $ 10,000,000 $ 9,984,417
5.39%, 8/8/96 ................................... 20,000,000 19,886,211
5.44%, 3/4/97(1)(2) ............................. 10,000,000 10,000,000
5.55%, 1/21/97(1)(2) ............................ 10,000,000 10,000,000
Dean Witter, Discover & Co., 5.76%, 11/22/96(1) ... 10,000,000 10,009,228
Merrill Lynch & Co., Inc.:
4.94%, 8/19/96 .................................. 10,000,000 9,932,761
5.21%, 7/3/96 ................................... 10,000,000 9,997,106
5.25%, 7/2/96 ................................... 10,000,000 9,998,542
5.29%, 8/14/96 .................................. 15,000,000 14,903,017
5.31%, 7/17/96 .................................. 15,034,000 14,998,520
5.36%, 7/11/96 .................................. 12,000,000 11,982,133
5.40%, 1/31/97(1) ............................... 20,000,000 20,000,000
5.44%, 11/1/96(1) ............................... 10,000,000 10,000,000
5.45%, 9/19/96(1) ............................... 15,000,000 14,999,344
5.47%, 10/24/96(1) .............................. 10,000,000 10,000,000
Morgan Stanley Group, Inc.:
5.12%, 7/26/96 .................................. 25,000,000 24,911,111
5.21%, 7/15/96 .................................. 10,000,000 9,979,739
5.27%, 9/30/96(1) ............................... 61,600,000 61,600,000
5.62%, 7/1/96 ................................... 26,000,000 26,000,000
------------
309,182,129
------------
BUILDING MATERIALS - 0.6%
Compagnie de Saint Gobain:
4.98%, 8/29/96 .................................. 5,000,000 4,959,233
5.01%, 9/5/96 ................................... 10,000,000 9,908,150
Redland Finance, 5.35%, 7/12/96 ................... 7,000,000 6,988,557
------------
21,855,940
------------
COMMERCIAL FINANCE - 15.2%
CIT Group Holdings, Inc.:
5.30%, 7/31/96 .................................. 15,000,000 14,933,750
5.35%, 5/1/97(1) ................................ 10,000,000 9,990,484
5.35%, 6/11/97(1) ............................... 10,000,000 9,988,776
6.02%, 7/10/96(1)(3) ............................ 38,500,000 38,500,000
</TABLE>
6
<PAGE> 8
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited) (Continued)
DAILY CASH ACCUMULATION FUND, INC.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- -----------
<S> <C> <C>
COMMERCIAL FINANCE (CONTINUED)
Countrywide Home Loan:
5.32%, 7/25/96 .................. $ 10,000,000 $ 9,964,167
5.32%, 8/12/96 .................. 25,000,000 24,844,833
5.32%, 8/23/96 .................. 6,000,000 5,953,007
5.35%, 7/17/96 .................. 15,000,000 14,964,333
5.36%, 7/22/96 .................. 10,000,000 9,968,733
5.38%, 7/12/96 .................. 46,400,000 46,323,632
5.38%, 7/8/96 ................... 25,000,000 24,973,750
5.42%, 8/9/96 ................... 10,000,000 9,941,283
FINOVA Capital Corp.:
4.97%, 8/30/96 .................. 5,000,000 4,958,583
5.37%, 7/29/96 .................. 10,000,000 9,958,233
5.37%, 8/14/96 .................. 15,000,000 14,901,367
5.38%, 7/25/96 .................. 10,000,000 9,964,133
5.40%, 2/21/97(1) ............... 15,000,000 15,000,000
5.40%, 7/10/96 .................. 47,000,000 46,936,388
5.40%, 7/22/96 .................. 10,000,000 9,968,500
5.41%, 8/16/96 .................. 19,000,000 18,868,772
5.43%, 7/15/96 .................. 5,000,000 4,989,442
5.45%, 7/18/96 .................. 10,000,000 9,974,264
5.45%, 9/3/96 ................... 5,000,000 4,952,000
5.49%, 8/9/96 ................... 10,000,000 9,940,471
5.52%, 8/26/96 .................. 7,000,000 6,939,893
Heller Financial, Inc.:
5.38%, 7/26/96 .................. 5,000,000 4,981,319
5.39%, 7/15/96 .................. 7,000,000 6,985,327
5.40%, 7/25/96 .................. 10,000,000 9,964,000
5.41%, 7/11/96 .................. 10,000,000 9,984,958
5.47%, 10/4/96(1) ............... 18,000,000 17,997,256
5.48%, 8/15/96 .................. 12,400,000 12,315,060
5.50%, 10/7/96(1) ............... 10,000,000 9,999,773
5.50%, 10/7/96(1) ............... 8,000,000 8,000,000
5.51%, 8/28/96(1) ............... 20,000,000 20,000,000
5.66%, 1/15/97(1) ............... 10,000,000 10,007,331
5.67%, 3/28/97(1) ............... 20,000,000 20,004,517
5.98%, 10/1/96(1) ............... 10,000,000 10,000,000
------------
527,938,335
------------
COMPUTER SOFTWARE - 0.5%
First Data Corp.:
5.37%, 7/15/96 .................. 7,000,000 6,985,382
5.38%, 7/2/96 ................... 8,600,000 8,598,715
------------
15,584,097
------------
</TABLE>
7
<PAGE> 9
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited) (Continued)
DAILY CASH ACCUMULATION FUND, INC.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- -----------
<S> <C> <C>
CONGLOMERATES - 0.3%
Mitsubishi International Corp., 5.23%, 7/5/96 .......................................... $ 3,000,000 $ 2,998,257
Pacific Dunlop Holdings, Inc., guaranteed by Pacific Dunlop, Ltd., 5.08%, 7/31/96(4) ... 6,650,000 6,620,518
------------
9,618,775
------------
CONSUMER FINANCE - 3.2%
American Express Credit Corp.:
5.10%, 7/19/96 ....................................................................... 10,000,000 9,974,500
5.22%, 7/8/96 ........................................................................ 12,000,000 11,987,517
5.30%, 10/28/96 ...................................................................... 5,000,000 4,912,403
Island Finance Puerto Rico, Inc.:
5.31%, 7/10/96 ....................................................................... 10,000,000 9,986,725
5.31%, 7/11/96 ....................................................................... 20,000,000 19,970,500
5.31%, 7/12/96 ....................................................................... 10,000,000 9,983,775
5.31%, 7/8/96 ........................................................................ 8,000,000 7,991,740
5.45%, 8/2/96 ........................................................................ 5,000,000 4,975,778
Sears Roebuck Acceptance Corp.:
5.10%, 7/1/96 ........................................................................ 20,000,000 20,000,000
5.36%, 7/10/96 ....................................................................... 10,000,000 9,986,600
------------
109,769,538
------------
DIVERSIFIED FINANCIAL - 8.7%
Associates Corp. of North America, 5.60%, 7/1/96 ....................................... 5,000,000 5,000,000
Ford Motor Credit Co.:
5.31%, 7/12/96 ....................................................................... 15,000,000 14,975,663
5.31%, 7/2/96 ........................................................................ 10,000,000 9,998,525
5.34%, 7/8/96 ........................................................................ 18,000,000 17,981,310
5.36%, 10/7/96 ....................................................................... 10,000,000 9,854,089
General Electric Capital Corp.:
4.92%, 8/22/96 ....................................................................... 36,300,000 36,027,568
4.94%, 8/19/96 ....................................................................... 10,000,000 9,932,761
5.15%, 7/15/96 ....................................................................... 10,000,000 9,979,972
5.24%, 7/2/96 ........................................................................ 10,000,000 9,998,544
5.36%, 10/4/96 ....................................................................... 15,000,000 14,787,833
5.39%, 8/1/96(1) ..................................................................... 10,000,000 9,998,745
General Electric Capital Services, 5.28%, 10/28/96 ..................................... 10,000,000 9,825,467
General Motors Acceptance Corp.:
5.33%, 7/12/96 ....................................................................... 10,000,000 9,983,714
5.39%, 10/2/96 ....................................................................... 10,000,000 9,860,758
5.39%, 7/3/96 ........................................................................ 35,000,000 34,989,508
5.42%, 11/8/96 ....................................................................... 5,000,000 4,902,139
5.64%, 7/1/96 ........................................................................ 25,000,000 25,000,000
5.66%, 8/19/96(1) .................................................................... 15,000,000 14,999,914
5.67%, 7/19/96(1) .................................................................... 20,000,000 19,999,971
8.75%, 8/1/96 ........................................................................ 5,550,000 5,563,431
</TABLE>
8
<PAGE> 10
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited) (Continued)
DAILY CASH ACCUMULATION FUND, INC.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- -----------
<S> <C> <C>
DIVERSIFIED FINANCIAL (CONTINUED)
Household Finance Corp., 5.28%, 8/19/96 .......................................... $ 10,000,000 $ 9,928,133
Prudential Funding Corp., 5.06%, 7/8/96 .......................................... 7,000,000 6,993,113
------------
300,581,158
------------
ELECTRIC UTILITIES - 0.4%
Vattenfall Treasury, Inc., guaranteed by Vattenfall AB, 5.35%, 10/16/96 .......... 15,000,000 14,761,479
------------
ELECTRICAL EQUIPMENT - 0.6%
Xerox Corp., 5.30%, 7/26/96 ...................................................... 20,000,000 19,926,389
------------
ELECTRONICS - 2.0%
Avnet, Inc.:
5.30%, 7/19/96 ................................................................. 10,000,000 9,973,500
5.40%, 8/19/96 ................................................................. 5,000,000 4,963,250
ITT Industries, Inc., 5.35%, 7/22/96(4) .......................................... 10,000,000 9,968,792
Mitsubishi Electric Finance America, Inc.:
5.30%, 8/21/96(4) .............................................................. 10,000,000 9,924,917
5.35%, 7/10/96(4) .............................................................. 10,000,000 9,986,625
5.36%, 7/3/96(4) ............................................................... 4,107,000 4,105,777
5.37%, 7/10/96 ................................................................. 10,000,000 9,986,575
5.41%, 8/7/96(4) ............................................................... 10,000,000 9,944,397
------------
68,853,833
------------
ENERGY SERVICES & PRODUCERS - 0.4%
Union Pacific Resources Group, Inc.:
5.34%, 7/11/96(4) .............................................................. 5,000,000 4,992,583
5.35%, 7/9/96(4) ............................................................... 8,000,000 7,990,489
------------
12,983,072
------------
ENVIRONMENTAL - 2.2%
WMX Technologies, Inc.:
4.90%, 11/15/96(4) ............................................................. 8,000,000 7,850,822
5.10%, 8/16/96(4) .............................................................. 10,000,000 9,934,833
5.21%, 7/11/96(4) .............................................................. 10,000,000 9,985,194
5.22%, 7/9/96(4) ............................................................... 15,000,000 14,982,233
5.32%, 9/10/96(4) .............................................................. 10,000,000 9,895,078
5.35%, 10/15/96(4) ............................................................. 10,000,000 9,842,472
5.35%, 7/18/96(4) .............................................................. 10,000,000 9,974,736
5.36%, 7/16/96(4) .............................................................. 5,000,000 4,988,917
------------
77,454,285
------------
HEALTHCARE/SUPPLIES & SERVICES - 3.7%
A.H. Robins Co., Inc., guaranteed by American Home Products, 5.32%, 7/26/96(4) ... 10,000,000 9,962,361
Allergan, Inc., 5.42%, 9/10/96 ................................................... 5,800,000 5,738,001
</TABLE>
9
<PAGE> 11
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited) (Continued)
DAILY CASH ACCUMULATION FUND, INC.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- -----------
<S> <C> <C>
HEALTHCARE/SUPPLIES & SERVICES (Continued)
American Home Food Products, Inc., guaranteed by American Home
Products, 5.40%, 8/7/96(4) ..................................... $ 30,000,000 $ 29,833,500
American Home Products:
5.31%, 8/2/96(4) ................................................ 8,115,000 8,076,697
5.37%, 7/12/96(4) ............................................... 20,000,000 19,967,183
5.42%, 8/19/96(4) ............................................... 7,015,000 6,963,249
Sherwood Medical Co., guaranteed by American Home Products:
5.37%, 7/12/96(4) ............................................... 20,000,000 19,967,183
5.41%, 8/21/96(4) ............................................... 21,000,000 20,839,053
5.43%, 7/19/96(4) ............................................... 7,730,000 7,709,013
------------
129,056,240
------------
INDUSTRIAL SERVICES - 0.7%
Atlas Copco AB:
5.02%, 9/3/96(4) ................................................ 5,000,000 4,955,378
5.32%, 10/30/96(4) .............................................. 10,000,000 9,821,189
PHH Corp., 5.45%, 3/26/97(1) ...................................... 10,000,000 9,995,702
------------
24,772,269
------------
INSURANCE - 7.1%
Allstate Life Insurance Co., 5.44%, 7/1/96(1)(2)(3) ............... 10,000,000 10,000,000
General American Life Insurance Co., 6%, 7/1/96(1)(2)(3) .......... 30,000,000 30,000,000
Jackson National Life, 5.46%, 7/1/96(1)(2)(3) ..................... 30,000,000 30,000,000
Pacific Mutual Life Insurance Co., 5.57%, 2/14/97(1)(2)(3) ........ 50,000,000 50,000,000
Protective Life Insurance Co., 5.59%, 7/1/96(1)(2)(3) ............. 20,000,000 20,000,000
TransAmerica Life Insurance & Annuity Co.:
5.44%, 10/15/96(1)(2)(3) ........................................ 25,000,000 25,000,000
5.44%, 8/7/96(1)(2)(3) .......................................... 25,000,000 25,000,000
5.44%, 9/27/96(1)(2)(3) ......................................... 25,000,000 25,000,000
5.44%, 9/30/96(1)(2)(3) ......................................... 20,000,000 20,000,000
5.52%, 7/10/96(2)(3) ............................................ 10,000,000 10,000,000
------------
245,000,000
------------
LEASING & FACTORING - 2.2%
CSW Credit, Inc., 5.42%, 8/12/96 .................................. 20,000,000 19,873,533
International Lease Finance Corp.:
5.30%, 7/30/96 .................................................. 20,000,000 19,914,611
5.35%, 7/12/96 .................................................. 5,000,000 4,991,888
The Hertz Corp.:
5.20%, 7/12/96 .................................................. 10,000,000 9,984,111
5.37%, 7/10/96 .................................................. 21,000,000 20,971,808
------------
75,735,951
------------
</TABLE>
10
<PAGE> 12
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited) (Continued)
DAILY CASH ACCUMULATION FUND, INC.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- -----------
<S> <C> <C>
MANUFACTURING - 0.2%
Rexam PLC, 5.35%, 7/1/96(4) .......................... $ 6,500,000 $ 6,500,000
-----------
METALS/MINING - 0.5%
English China Clays PLC:
5.35%, 7/11/96(4) .................................. 5,000,000 4,992,569
5.40%, 8/19/96(4) .................................. 13,700,000 13,599,305
-----------
18,591,874
-----------
NONDURABLE HOUSEHOLD GOODS - 0.4%
Colgate-Palmolive Co., 5.20%, 9/23/96(4) ............. 15,000,000 14,818,058
-----------
SAVINGS & LOANS - 1.7%
Great Western Bank FSB, 5.32%, 7/12/96 ............... 15,000,000 14,975,617
Household Bank FSB:
5.35%, 8/15/96 ..................................... 10,000,000 9,999,877
5.39%, 8/7/96 ...................................... 7,500,000 7,500,000
5.39%, 9/27/96(1) .................................. 25,000,000 24,997,940
-----------
57,473,434
-----------
SPECIAL PURPOSE FINANCIAL - 11.6%
Asset-Securitization Cooperative:
5.28%, 7/12/96(4) .................................. 5,000,000 4,991,933
5.30%, 7/18/96(4) .................................. 20,000,000 19,949,944
5.31%, 7/17/96(4) .................................. 30,000,000 29,929,200
Cooperative Association of Tractor Dealers, Inc.:
4.92%, 8/20/96 ..................................... 7,200,000 7,150,800
5.37%, 7/12/96 ..................................... 13,700,000 13,677,434
CXC, Inc.:
5.32%, 8/5/96(4) ................................... 20,000,000 19,896,556
5.32%, 8/7/96(4) ................................... 15,000,000 14,917,983
5.32%, 9/13/96(4) .................................. 25,000,000 24,726,611
5.42%, 8/27/96(4) .................................. 15,000,000 14,871,275
First Deposit Master Trust 1993 - 3:
5.07%, 7/10/96(4) .................................. 10,000,000 9,987,325
5.10%, 8/8/96(4) ................................... 5,000,000 4,973,083
5.31%, 8/26/96(4) .................................. 9,995,000 9,912,441
Fleet Funding Corp., 5.37%, 7/10/96(4) ............... 11,335,000 11,319,811
New Center Asset Trust:
5.29%, 8/5/96 ...................................... 10,000,000 9,948,569
5.36%, 7/12/96 ..................................... 15,000,000 14,975,433
5.37%, 9/12/96 ..................................... 15,000,000 14,836,663
Sheffield Receivables Corp.:
5.35%, 7/8/96 ...................................... 30,350,000 30,318,428
5.37%, 7/11/96 ..................................... 9,780,000 9,765,412
</TABLE>
11
<PAGE> 13
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited) (Continued)
DAILY CASH ACCUMULATION FUND, INC.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SPECIAL PURPOSE FINANCIAL (CONTINUED)
Short-Term Card Account Trust 1995 - 1, Class A1, 5.51%, 1/15/97(1)(2) ... $ 15,000,000 $ 15,000,000
SMM Trust:
1996 - I, 5.48%, 5/29/97(1)(2) ........................................... 10,000,000 10,000,000
1995 - B, 5.49%, 8/2/96(1)(2) ............................................ 10,000,000 10,000,000
1995 - B, 5.91%, 11/15/96(1)(2) .......................................... 15,000,000 15,000,000
1996 - V, 5.62%, 3/26/97(1)(2) ........................................... 10,000,000 10,000,000
Structured Enhanced Return Trust 1993 Series A - 02, 5.54%, 11/18/96(1)(2) 10,000,000 10,000,000
WCP Funding:
5.30%, 7/25/96(4) ........................................................ 9,200,000 9,167,493
5.30%, 7/26/96(4) ........................................................ 5,000,000 4,981,597
5.31%, 7/12/96(4) ........................................................ 25,000,000 24,959,392
5.35%, 7/10/96(4) ........................................................ 10,000,000 9,986,625
5.35%, 7/11/96(4) ........................................................ 8,000,000 7,988,111
5.42%, 8/16/96(4) ........................................................ 10,000,000 9,930,744
--------------
403,162,863
--------------
SPECIALTY RETAILING - 0.9%
St. Michael Finance Ltd., guaranteed by Marks & Spencer PLC:
4.90%, 8/22/96 ........................................................... $ 10,568,000 10,493,202
5.29%, 8/13/96 ........................................................... 10,000,000 9,936,874
5.31%, 8/28/96 ........................................................... 10,000,000 9,914,450
--------------
30,344,526
--------------
TELECOMMUNICATIONS - TECHNOLOGY - 1.6%
NYNEX Corp.:
5.33%, 7/16/96 ........................................................... 20,000,000 19,955,583
5.33%, 8/14/96 ........................................................... 11,000,000 10,928,341
5.35%, 7/29/96 ........................................................... 20,000,000 19,916,078
5.38%, 8/5/96 ............................................................ 6,000,000 5,968,617
--------------
56,768,619
--------------
TELEPHONE UTILITIES - 1.0%
GTE CORP.:
5.37%, 7/18/96 ........................................................... 8,600,000 8,578,192
5.37%, 7/9/96 ............................................................ 27,000,000 26,967,780
--------------
35,545,972
--------------
Total Short-Term Notes (Cost $2,764,417,558) ............................. 2,764,417,558
==============
</TABLE>
12
<PAGE> 14
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited) (Continued)
DAILY CASH ACCUMULATION FUND, INC.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
U.S. GOVERNMENT AGENCY - 0.5%
Federal Home Loan Mortgage Corp., 5.18%, 7/25/96 (Cost $15,944,747) $ 16,000,000 $ 15,944,747
---------------
FOREIGN GOVERNMENT OBLIGATIONS - 1.4%
Bayerische Landesbank Girozentrale, 5.10%, 8/23/96 ................. 10,000,000 10,000,144
Finnish Export Credit, Ltd. supported by the Republic of Finland:
5.08%, 7/26/96 ..................................................... 5,000,000 4,982,361
5.10%, 7/25/96 ..................................................... 20,000,000 19,932,000
Unibanco - Uniao de Brancos Brasileiros SA - Grand Cayman,
guaranteed by Westdeutsche Landesbank Girozentrale, 5.37%, 7/5/96 14,250,000 14,241,497
---------------
Total Foreign Government Obligations (Cost $49,156,002) ............ 49,156,002
---------------
Total Investments, at Value ........................................ 100.7% 3,491,504,558
Liabilities in Excess of Other Assets .............................. (0.7) (25,197,308)
--------------- ---------------
Net Assets ......................................................... 100.0 % $ 3,466,307,250
=============== ===============
</TABLE>
Short-term notes and direct bank obligations are generally traded on a discount
basis; the interest rate is the discount rate received by the Fund at the time
of purchase. Other securities normally bear interest at the rates shown.
1. Floating or variable rate obligation maturing in more than one year. 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 June
30, 1996. This instrument may also have a demand feature which allows the
recovery of principal at any time, or at specified intervals not exceeding
one year, on up to 30 days' notice. Maturity date shown represents
effective maturity based on variable rate and, if applicable, demand
feature.
2. Restricted securities amount to $354,800,000, or 10.24% of the Fund's net
assets, at June 30, 1996. In addition to being restricted, the security may
be 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 $160,000,000, or 4.62% of the Fund's net assets, at
June 30, 1996. The Fund may not invest more than 10% of its net assets
(determined at the time of purchase) in illiquid securities.
3. Put obligation redeemable at full face value on the date reported.
4. Security issued in an exempt transaction without registration under the
Securities Act of 1933 (the Act). The securities are carried at amortized
cost, and amount to $640,586,651 or 18.48% of the Fund's net assets.
See accompanying Notes to Financial Statements.
13
<PAGE> 15
STATEMENT OF ASSETS AND LIABILITIES June 30, 1996 (Unaudited)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<S> <C>
ASSETS:
Investments, at value - see accompanying statement ........... $3,491,504,558
Cash ......................................................... 5,814,389
Receivables:
Interest .................................................. 9,124,181
Shares of capital stock sold .............................. 337,877
Other ........................................................ 26,894
--------------
Total assets .............................................. 3,506,807,899
--------------
LIABILITIES:
Payables and other liabilities:
Shares of capital stock redeemed .......................... 34,914,455
Dividends ................................................. 4,570,149
Transfer and shareholder servicing agent fees ............. 462,955
Service plan fees ......................................... 191,297
Directors' fees ........................................... 1,475
Other ..................................................... 360,318
--------------
Total liabilities ......................................... 40,500,649
--------------
NET ASSETS ................................................... $3,466,307,250
==============
COMPOSITION OF NET ASSETS:
Par value of shares of capital stock ......................... $ 346,615,224
Additional paid-in capital ................................... 3,119,537,013
Accumulated net realized gain on investment transactions ..... 155,013
--------------
NET ASSETS - applicable to 3,466,152,237 shares of capital
stock outstanding ......................................... $3,466,307,250
==============
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $ 1.00
</TABLE>
See accompanying Notes to Financial Statements.
14
<PAGE> 16
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1996 (Unaudited)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest ................................................... $99,556,295
-----------
EXPENSES:
Management fees - Note 3 ................................... 6,724,349
Service plan fees - Note 3 ................................. 3,594,635
Transfer and shareholder servicing agent fees - Note 3 ..... 1,484,371
Custodian fees and expenses ................................ 145,002
Registration and filing fees ............................... 73,057
Directors' fees and expenses ............................... 11,692
Other ...................................................... 89,711
-----------
Total expenses .......................................... 12,122,817
-----------
NET INVESTMENT INCOME ...................................... 87,433,478
NET REALIZED GAIN ON INVESTMENTS ........................... 995
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ....... $87,434,473
===========
</TABLE>
See accompanying Notes to Financial Statements.
15
<PAGE> 17
STATEMENTS OF CHANGES IN NET ASSETS
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1996 Year Ended
(Unaudited) December 31, 1995
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income .............................. $ 87,433,478 $ 179,893,318
Net realized gain .................................. 995 664,800
--------------- ---------------
Net increase in net assets resulting from operations 87,434,473 180,558,118
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS ........ (87,416,177) (180,522,108)
CAPITAL STOCK TRANSACTIONS:
Net increase (decrease) in net assets resulting from
capital stock transactions - Note 2 ............. (57,436,147) 565,456,928
--------------- ---------------
NET ASSETS
Total increase (decrease) .......................... (57,417,851) 565,492,938
Beginning of period ................................ 3,523,725,101 2,958,232,163
--------------- ---------------
End of period ...................................... $ 3,466,307,250 $ 3,523,725,101
=============== ===============
</TABLE>
See accompanying Notes to Financial Statements.
16
<PAGE> 18
FINANCIAL HIGHLIGHTS
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31,
June 30, 1996 --------------------------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
--------- --------- --------- --------- --------- ---------
<S> <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
Income from investment
operations - net investment
income and net realized gain
on investments ..................... .02 .05 .04(1) .03 .03 .06
Dividends and distributions
to shareholders .................... (.02) (.05) (.04) (.03) (.03) (.06)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
TOTAL RETURN, AT
NET ASSET VALUE(2) .................... 2.41% 5.47% 3.77% 2.69% 3.54% 5.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $ 3,466 $ 3,524 $ 2,958 $ 3,589 $ 4,061 $ 5,208
Average net assets (in millions) ...... $ 3,644 $ 3,379 $ 3,378 $ 3,940 $ 4,760 $ 5,434
RATIOS TO AVERAGE NET ASSETS:
Net investment income ................. 4.83%(3) 5.32% 3.64% 2.67% 3.50% 5.64%
Expenses .............................. 0.67%(3) 0.71% 0.73%(1) 0.74% 0.70% 0.67%
</TABLE>
1. Net investment income would have been $.04 per share absent the voluntary
expense limitation, resulting in an expense ratio of 0.74%.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Total returns are
not annualized for periods of less than one full year. Total returns
reflect changes in net investment income only.
3. Annualized.
See accompanying Notes to Financial Statements.
17
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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 objective is to seek the maximum
current income that is consistent with low capital risk and the maintenance of
liquidity. The Fund's investment advisor is Centennial Asset Management
Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). 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 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 or excise 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.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
18
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
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>
Six Months Ended June 30, 1996 Year Ended December 31, 1995
-------------------------------------- --------------------------------------
Shares Amount Shares Amount
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Sold ...................... 3,732,241,386 $ 3,732,241,386 7,320,626,109 $ 7,320,626,109
Dividends and distributions
reinvested ................ 81,575,064 81,575,064 177,673,219 177,673,219
Redeemed .................. (3,871,252,597) (3,871,252,597) (6,932,842,400) (6,932,842,400)
--------------- --------------- --------------- ---------------
Net increase (decrease) ... (57,436,147) $ (57,436,147) 565,456,928 $ 565,456,928
=============== =============== =============== ===============
</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 a fee of 0.45% on the first
$500 million of average annual net assets with a reduction of 0.025% on each
$500 million thereafter, to 0.25% 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.
Independently of the investment advisory agreement with the Fund, effective
December 1, 1994, the Manager has voluntarily agreed to assume the Fund's
expenses to the level needed to enable the Fund's seven-day yield (computed in
accordance with procedures specified pursuant to regulations adopted under the
Investment Company Act of 1940) to at least equal the seven-day yield of
Centennial Money Market Trust.
Shareholder Services, Inc. (SSI), a subsidiary of OFI, 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 0.20% of its
net assets annually to reimburse certain securities dealers and other financial
institutions and organizations for costs incurred in distributing Fund shares.
19
<PAGE> 21
DAILY CASH ACCUMULATION FUND, INC.
Officers and Directors
James C. Swain, Chairman and Chief
Executive Officer
Bridget A. Macaskill, Director and President
Robert G. Avis, Director
William A. Baker, Director
Charles Conrad, Jr., Director
Jon S. Fossel, Director
Sam Freedman, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
George C. Bowen, Vice President, Treasurer
and Assistant Secretary
Andrew J. Donohue, Vice President and
Secretary
Dorothy G. Warmack, Vice President
Carol E. Wolf, Vice President
Arthur J. Zimmer, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. 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 & Wolf, P.C.
The financial statements included herein have been taken from
the records of the Fund without examination by the independent
auditors.
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:
1-800-525-9310 (in U.S.)
303-671-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5143
Denver, CO 80217-5143
[LOGO]Printed on recycled paper.
