Registration No. 2-46891
File No. 811-2346
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / X /
PRE-EFFECTIVE AMENDMENT NO. __ / /
POST-EFFECTIVE AMENDMENT NO. 38 /X /
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940 / X /
Amendment No. 31 / X /
DAILY CASH ACCUMULATION FUND, INC.
(Exact Name of Registrant as Specified in Charter)
3410 South Galena Street
Denver, Colorado 80231
(Address of Principal Executive Offices)
303-671-3200
(Registrant's Telephone Number)
ANDREW J. DONOHUE, ESQ.
OppenheimerFunds, Inc.
Two World Trade Center, New York, New York 10048-0203
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check
appropriate box):
/ / Immediately upon filing pursuant to paragraph (b)
/ X / On May 1, 1996, pursuant to paragraph (b)
/ / 60 days after filing, pursuant to paragraph (a)
/ / On _______________ pursuant to paragraph (a)(1)
/ / 75 days after filing, pursuant to paragraph (a)(2)
/ / On _______________ pursuant to paragraph (a)(2) of Rule 485
The Registrant has registered an indefinite number of shares under the
Securities Act of 1933 pursuant to Rule 24f-2 promulgated under the
Investment Company Act of 1940. A Rule 24f-2 Notice for the
Registrant's fiscal year ended December 31, 1995 was filed on February
28, 1996.
<PAGE>
FORM N-1A
DAILY CASH ACCUMULATION FUND, INC.
Cross Reference Sheet
Part A of
Form N-1A
Item No. Prospectus Heading
1 Cover Page
2 Fund Expenses
3 Financial Highlights; Yield Information
4 Cover Page; The Fund and Its Investment
Policies; Investment Restrictions
5 Management of the Fund; Fund Expenses; Inside
Back Cover; Additional Information - The
Custodian and the Transfer Agent
6 Dividends, Distributions and Tax Information;
Additional Information; Management of the Fund
7 How to Buy Shares; Exchanges of Shares and
Retirement Plans; How to Redeem Shares
8 How to Redeem Shares
9 *
Part B of
Form N-1A
Item No. Heading in Statement of Additional Information
10 Cover Page
11 Cover Page
12 *
13 Investment Objective and Policies; Investment
Restrictions; Appendix A - Description of
Securities Ratings
14 Directors and Officers; Investment Management
Services
15 Investment Objective and Policies; Directors and
Officers - Major Shareholders
16 Investment Management Services; Service Plan
17 Investment Management Services - Portfolio
Transactions
18 (Prospectus - "Additional Information -
Description of Capital Stock")
19 Yield Information; Purchase, Redemption and
Pricing of Shares; Automatic Withdrawal Plan
Provisions
20 (Prospectus - "Dividend, Distributions and Tax
Information")
21 (Prospectus-"How to Buy Shares"); Service Plan;
Additional Information - General Distributor's
Agreement
22 Yield Information
23 Financial Statements
_______________
* Not applicable or negative answer.
<PAGE>
Daily Cash Accumulation Fund, Inc.
Prospectus dated May 1, 1996
Daily Cash Accumulation Fund, Inc. is a no-load "money market"
mutual fund with the investment objective of seeking the maximum
current income that is consistent with low capital risk and the
maintenance of liquidity. The Fund seeks to achieve this objective by
investing in "money market" securities meeting specified quality
standards. Shares of the Fund are sold at net asset value without a
sales charge.
An investment in the Fund is neither insured nor guaranteed by
the U.S. Government. Shares of the Fund are not deposits or
obligations of any bank, are not guaranteed by any bank, and are not
insured by the F.D.I.C. or any other agency. While the Fund seeks to
maintain a stable net asset value of $1.00 per share, there can be no
assurance that the Fund will be able to do so. See "The Fund and Its
Investment Policies."
Shares of the Fund may be purchased directly from dealers
having sales agreements with the Fund's Distributor and also are
offered to participants in Automatic Purchase and Redemption Programs
(the "Programs") established by certain brokerage firms with which the
Fund's Distributor has entered into agreements for that purpose. See
"How to Buy Shares," below for more details. Program participants
should also read the description of the Program provided by their
broker.
This Prospectus sets forth concisely information about the
Fund that a prospective investor should know before investing. A
Statement of Additional Information about the Fund dated May 1, 1996,
has been filed with the Securities and Exchange Commission ("SEC") and
is available without charge upon written request to Shareholder
Services, Inc. (the "Transfer Agent"), P.O. Box 5143, Denver, Colorado
80217-5143 or by calling the toll-free number shown above. The
Statement of Additional Information (which is incorporated by reference
in its entirety in this Prospectus) contains more detailed information
about the Fund and its management.
Investors are advised to read and retain this Prospectus for
future reference.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
Table of Contents
Page
Fund Expenses
Financial Highlights
Yield Information
The Fund and Its Investment Policies
Investment Restrictions
Management of the Fund
How to Buy Shares
Purchases Through Automatic Purchase and Redemption Programs
Direct Purchases
Payment by Check
Payment by Federal Funds Wire
Guaranteed Payment
Automatic Investment Plan
General
Service Plan
How to Redeem Shares
Program Participants
Shares of the Fund Owned Directly
Regular Redemption Procedure
Expedited Redemption Procedure
Check Writing
Telephone Redemptions
Automatic Withdrawal Plan
General Information on Redemptions
Distributions from Retirement Plans
Exchanges of Shares and Retirement Plans
Dividends, Distributions and Taxes
Additional Information
<PAGE>
Fund Expenses
The following table sets forth the fees that an investor in the Fund
might pay and the expenses paid by the Fund during the Fund's fiscal
year ended December 31, 1995.
Shareholder Transaction Expenses
Maximum Sales Charge on Purchases None
Sales Charge on Reinvested Dividends None
Redemption Fees None (1)
Exchange Fee None
(1) There is a $10 transaction fee for redemptions paid by Federal
Funds wire, but not for redemptions paid by check.
Annual Fund Operating Expenses
(as a percentage of average annual net assets)
Management Fees 0.38%
12b-1 (Service Plan) Fees 0.20%
Other Expenses 0.13%
Total Fund Operating Expenses 0.71%
The purpose of this table is to assist an investor in understanding
the various costs and expenses that an investor in the Fund will bear
directly (shareholder transaction expenses) or indirectly (annual fund
operating expenses). "Other Expenses" includes such expenses as
custodial and transfer agent fees and audit, legal and other business
operating expenses, but excludes extraordinary expenses. For further
details, see the Fund's financial statements included in the Statement
of Additional Information.
The following example applies the above-stated expenses to a
hypothetical $1,000 investment in shares of the Fund over the time
periods shown below, assuming a 5% annual rate of return on the
investment and also assuming that the shares are redeemed at the end of
each stated period. The amounts shown below are the cumulative costs
of such hypothetical $1,000 investment for the periods shown.
1 year 3 years 5 years 10 years
$7 $23 $40 $88
This example shows the effect of expenses on an investment, but is
not meant to predict actual or expected costs or investment returns of
the Fund, all of which may be more or less than those shown.
Financial Highlights
The table below presents selected financial information about the
Fund including per share data and expense ratios and other data based
on the Fund's average net assets. This information has been audited by
Deloitte & Touche LLP independent auditors, whose report on the
financial statements of the Fund for the fiscal year ended December 31,
1995 is included in the Statement of Additional Information.
<TABLE>
<CAPTION>
Year Ended December 31,
- -----------------------------------------------------------------------
- ---------------
1995 1994 1993
1992 1991 1990 1989 1988 1987 1986
------ ------ ------
- ------ ------ ------ ------ ------ ------ -----
<S> <C> <C> <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 $1.00 $1.00
----- ----- -----
- ----- ----- ----- ----- ----- ----- -----
Income from investment operations --
net investment income and net
realized gain........................ .05 .04(1) .03
.03 .06 .08 .08 .07 .06 .06
Dividends and distributions to
shareholders......................... (.05) (.04) (.03)
(.03) (.06) (.08) (.08) (.07) (.06) (.06)
----- ----- -----
- ----- ----- ----- ----- ----- ----- -----
Net asset value, end of period......... $1.00 $1.00 $1.00
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- -----
- ----- ----- ----- ----- ----- ----- -----
----- ----- -----
- ----- ----- ----- ----- ----- ----- -----
TOTAL RETURN, AT NET ASSET VALUE(2).... 5.47% 3.77% 2.69%
3.54% 5.87% 7.93% 8.94% 7.18% 6.51% 6.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
millions)............................ $3,524 $2,958 $3,589
$4,061 $5,208 $5,025 $4,920 $3,128 $2,555 $2,635
Average net assets (in millions)....... $3,379 $3,378 $3,940
$4,760 $5,434 $4,849 $4,112 $2,809 2,541 $2,530
Ratios to average net assets:
Net investment income................ 5.32% 3.64% 2.67%
3.50% 5.64% 7.61% 8.58% 7.01% 6.10% 6.11%
Expenses............................. 0.71% 0.73%(1) 0.74%
0.70% 0.67% 0.68% 0.71% 0.77% 0.78% 0.78%
</TABLE>
1. Net investment income would have been $.04 per share absent the
voluntary expense limitation, resulting in an expense ratio of .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.
<PAGE>
Yield Information
From time to time the "yield" and "compounded effective yield" of an
investment in the Fund may be advertised. Both yield figures are based
on historical earnings per share and are not intended to indicate
future performance. The "yield" of the Fund is the income generated by
an investment in the Fund over a seven-day period, which is then
"annualized." In annualizing, the amount of income generated by the
investment during that seven days is assumed to be generated each week
over a 52-week period, and is shown as a percentage of the investment.
The "compounded effective yield" is calculated similarly, but the
annualized income earned by an investment in the Fund is assumed to be
reinvested. The "compounded effective yield" will therefore be
slightly higher than the yield because of the effect of the assumed
reinvestment. From time to time the Manager may voluntarily assume a
portion of the Fund's expenses (which may include the management fee),
thereby lowering the overall expense ratio per share and increasing the
Fund's yield and total return during the time such expenses are
assumed. See "Yield Information" in the Statement of Additional
Information for more information about the methods of calculating these
yields.
The Fund and Its Investment Policies
The Fund is a no-load "money market" fund. It is an open-end,
diversified management investment company incorporated in Maryland in
1981. It was originally organized as a Delaware corporation in 1972.
The Fund's objective is to seek the maximum current income that is
consistent with low capital risk and maintenance of liquidity. The
value of the Fund's shares is not insured or guaranteed by any
government agency. However, shares held in brokerage accounts could be
eligible for coverage by the Securities Investor Protection Corporation
for losses arising from the insolvency of the brokerage firm. The
Fund's shares may be purchased at their net asset value, which will
remain fixed at $1.00 per share except under extraordinary
circumstances (see "Determination of Net Asset Value Per Share" in the
Statement of Additional Information for further information). There
can be no assurance, however, that the Fund's net asset value will not
vary or that the Fund will achieve its investment objective. In
seeking its objective, the Fund may invest in the securities discussed
below. The Fund's investment policies and practices are not
"fundamental" policies (as defined below) unless a particular policy is
identified as fundamental. The Board may change non-fundamental
investment policies without shareholder approval. The Fund's
investment objective is a fundamental policy.
- U.S. Government Securities. The Fund may invest in obligations
issued or guaranteed by the U.S. Government or any of its agencies or
instrumentalities, maturing in twelve months or less from the date of
purchase.
- Bank Obligations and Instruments Secured Thereby. The Fund may
invest in time deposits, certificates of deposit, bankers' acceptances
and other bank obligations if they are obligations of: (1) any U.S.
bank having total assets at least equal to $1 billion, or (2) any
foreign bank, if such bank has total assets at least equal to U.S. $1
billion. The Fund may also invest in instruments secured by such
obligations. Such foreign obligations or instruments must be payable in
U.S. dollars and mature in twelve months or less from the date of
purchase. For purposes of this section, the term "bank" includes
commercial banks, savings banks, and savings and loan associations.
The term "foreign bank" includes foreign branches of U.S. banks
(issuers of "Eurodollar" instruments), U.S. branches and agencies of
foreign banks (issuers of "Yankee dollar" instruments) and foreign
branches of foreign banks. The ratings restrictions described below do
not apply to banks in which the Fund's cash is kept.
- Commercial Paper and Certain Debt Obligations. The Fund may
invest in any "Eligible Security" permissible under Rule 2a-7
(discussed below). The securities must mature in 12 months from the
date of purchase, have been called for redemption by the issuer if the
redemption is effective within one year, or mature within one year in
accordance with the provisions of that Rule. These securities include
commercial paper maturing in nine months or less from the date of
purchase, variable and floating rate notes or master demand notes
(described in "Investment Objective and Policies" in the Statement of
Additional Information), and other securities discussed below.
- Other Obligations. The Fund may invest in obligations, other than
those listed above, if accompanied by a guarantee of principal and
interest or letter of credit, provided that the guarantee or letter of
credit is that of a bank or corporation whose certificates of deposit
or commercial paper may otherwise be purchased by the Fund. Such
obligations and guarantees must be due within twelve months or less
from the date of purchase. Also, the Fund may invest in obligations of
the types listed above that mature in more than twelve months, if they
are purchased subject to repurchase agreements calling for delivery in
twelve months or less.
- Board-Approved Instruments. The Fund may invest in obligations,
other than those discussed above, approved by the Fund's Board of
Directors and which are in accordance with the Fund's investment
objective, policies and restrictions. One such type of obligation
which the Board has approved is bank loan participation agreements,
described under "Investment Objective and Policies" in the Statement of
Additional Information.
Ratings of Securities
Under Rule 2a-7 of the Investment Company Act of 1940, as amended
(the "Investment Company Act"), the Fund uses the amortized cost method
to value its portfolio securities to determine the Fund's net asset
value per share. Rule 2a-7 places restrictions on a money market
fund's investments. Under the Rule, the Fund may purchase only those
securities that the Manager under procedures approved by the Fund's
Board of Directors has determined have minimal credit risk and are
"Eligible Securities," as defined below.
An "Eligible Security" is (a) one that has received a rating in one
of the two highest short-term rating categories by any two "nationally-
recognized statistical rating organizations" (as defined in the Rule)
("Rating Organizations"), or, if only one Rating Organization has rated
that security, by that Rating Organization, or (b) an unrated security
that is judged by the Manager to be of comparable quality to
investments that are "Eligible Securities" rated by Rating
Organizations. The Rule permits the Fund to purchase "First Tier
Securities," which are Eligible Securities rated in the highest rating
category for short-term debt obligations by at least two Rating
Organizations, or, if only one Rating Organization has rated a
particular security, by that Rating Organization, or comparable unrated
securities. Under the Rule, the Fund may invest only up to 5% of its
assets in "Second Tier Securities," which are Eligible Securities that
are not "First Tier Securities." In addition to the overall 5% limit
on Second Tier Securities, the Fund may not invest more than (i) 5% of
its total assets in the securities of any one issuer (other than the
U.S. Government, its agencies or instrumentalities) or (ii) 1% of its
total assets or $1 million (whichever is greater) in Second Tier
Securities of any one issuer. The Fund's Board must approve or ratify
the purchase of Eligible Securities that are unrated or are rated by
only one Rating Organization. Additionally, under Rule 2a-7, the Fund
must maintain a dollar-weighted average portfolio maturity of no more
than 90 days, and the maturity of any single portfolio investment may
not exceed 397 days. Some of the Fund's existing investment
restrictions (which are fundamental policies that may be changed only
by shareholder vote) are more restrictive than the provisions of Rule
2a-7. For example, as a matter of fundamental policy, the Fund may not
invest in any debt instrument having a maturity in excess of one year
from the date of the investment. The Fund's Board has adopted
procedures under Rule 2a-7 pursuant to which the Board has delegated to
the Manager certain responsibilities, in accordance with the Rule, of
conforming the Fund's investments with the requirements of the Rule and
those procedures.
Appendix A to the Statement of Additional Information contains
descriptions of the rating categories of Rating Organizations. Ratings
at the time of purchase will determine whether securities may be
acquired under the above restrictions. Subsequent downgrades in
ratings may require reassessments of the credit risk presented by a
security and may require its sale. The rating restrictions described
in this Prospectus do not apply to banks in which the Fund's cash is
kept. See "Ratings of Securities" in "Investment Objective and
Policies" in the Statement of Additional Information for further
details.
Obligations of Foreign Banks
The Fund's investment in obligations of foreign banks (which
obligations, as described above, must be payable in U.S. dollars), may
involve the following considerations not typically associated with the
obligations of domestic banks: (i) exchange control regulations; (ii)
availability of information about the issuer; (iii) differences in
accounting, auditing and financial reporting standards and government
regulation; (iv) the possibility of expropriation or confiscatory
taxation, political or social instability or diplomatic developments;
(v) the differences between the economies of the United States and the
applicable foreign country; and (vi) greater difficulties in commencing
a lawsuit against the issuer of a foreign security than against a U.S.
issuer. The Fund will not invest in obligations of foreign banks which
will cause more than 25% of the Fund's net assets to be so invested,
and will not speculate in foreign currencies.
Repurchase Agreements
The Fund may acquire securities that are subject to repurchase
agreements in order to generate income while providing liquidity. The
Fund's repurchase agreements will comply with the collateral
requirements of Rule 2a-7. If the vendor fails to pay the agreed-upon
repurchase price on the delivery date, the Fund's risks may include any
costs of disposing of the collateral, and any loss resulting from any
delay in foreclosing on the collateral. The Fund will not enter into a
repurchase agreement that will cause more than 10% of the Fund's net
assets at the time of purchase to be subject to repurchase agreements
maturing in more than seven days. There is no limit on the amount of
the Fund's net assets that may be subject to repurchase agreements
maturing in seven days or less. See "Repurchase Agreements" in
"Investment Objective and Policies" in the Statement of Additional
Information for more details.
Illiquid and Restricted Securities
Under the policies and procedures established by the Fund's Board
of Directors, the Manager determines the liquidity of certain of the
Fund's investments. Investments may be illiquid because of the absence
of an active trading market, making it difficult to value them or
dispose of them promptly at an acceptable price. A restricted security
is one that has a contractual restriction on its resale or which cannot
be sold publicly until it is registered under the Securities Act of
1933. The Fund will not purchase or otherwise acquire any security if,
as a result, more than 10% of its net assets would be invested in
securities that are illiquid by virtue of the absence of a readily
available market or because of legal or contractual restrictions on
resale. The Fund may invest up to 25% of its net assets in restricted
securities, subject to the above 10% limitation on illiquid securities.
The Fund's percentage limitation on these investments does not apply to
certain restricted securities that are eligible for resale to qualified
institutional purchasers. For further information, see "Illiquid and
Restricted Securities" in "Investment Objective and Policies" in the
Statement of Additional Information.
Loans of Portfolio Securities
To attempt to increase its income for liquidity purposes, the Fund
may lend its portfolio securities to qualified borrowers (other than in
repurchase transactions) if the loan is collateralized in accordance
with applicable regulatory requirements, and if after any loan, the
value of the securities loaned does not exceed 25% of the value of the
Fund's total assets. The Fund will not enter into any securities
lending agreements having a duration of greater than one year. Any
securities received as collateral for a loan must mature in 12 months
or less. The Fund presently does not intend to lend its portfolio
securities, but if it does, the value of securities loaned will not
exceed 5% of the value of the Fund's net assets in the coming year.
See "Loans of Portfolio Securities" in the Statement of Additional
Information for further information on securities loans.
Investment Restrictions
The Fund has certain investment restrictions which, together with
its investment objective, are fundamental policies changeable only by
the vote of a "majority" (as defined in the Investment Company Act) of
the Fund's outstanding voting securities. Under some of those
restrictions, the Fund cannot do any of the following:
- -- make loans, except through the purchase of the kinds of debt
securities described in "The Fund and Its Investment Policies";
repurchase agreements are not considered loans for purposes of this
restriction; the Fund may also lend its portfolio securities as
described above;
- -- borrow money in excess of 10% of the value of its assets; it may
borrow only as a temporary measure for extraordinary or emergency
purposes; no assets of the Fund may be pledged, mortgaged or assigned
to secure a debt;
- -- invest more than 5% of the value of its total assets in securities
of any one issuer, not including government or government agency
securities;
- -- purchase more than 10% of the outstanding non-voting securities or
more than 10% of the total debt securities of any one issuer;
- -- invest in any debt instrument having a maturity in excess of one
year from the date of the investment or, in the case of a debt
instrument subject to a repurchase agreement or called for redemption,
having a repurchase or redemption date more than one year from the date
of the investment; or
- -- concentrate investments to the extent of 25% of its assets in any
industry; however, there is no limitation as to investment in
obligations issued by domestic banks or savings and loan associations
(for this purpose, foreign branches of domestic banks are not
considered to be "domestic banks") or in obligations issued by the U.S.
Government or its agencies or instrumentalities.
The percentage restrictions described above and in the Statement of
Additional Information are applicable only at the time of investment
and require no action by the Fund as a result of subsequent changes in
the value of the investment or the size of the Fund. A supplementary
list of investment restrictions is contained in the Statement of
Additional Information.
Management of the Fund
The Fund's Board of Directors has overall responsibility for the
management of the Fund under the laws of Maryland governing the
responsibilities of directors. "Directors and Officers" in the
Statement of Additional Information identifies the Fund's Directors and
officers and provides information about them. Subject to the authority
of the Board of Directors, the Manager is responsible for the day-to-
day management of the Fund's business, supervises the investment opera-
tions of the Fund and the composition of its portfolio and furnishes
the Fund advice and recommendations with respect to investments,
investment policies and the purchase and sale of securities, pursuant
to an investment advisory agreement with the Fund (the "Agreement").
The management fee is payable monthly to the Manager, under the terms
of the Agreement and is computed on the net assets of the Fund as of
the close of business each day at the following annual rates: 0.450%
of the first $500 million of net assets; 0.425% of the next $500
million; 0.400% of the next $500 million; 0.375% of the next $500
million; 0.350% of the next $500 million; 0.325% of the next $500
million; 0.300% of the next $500 million; 0.275% of the next $500
million; and 0.250% of net assets in excess of $4 billion. The Fund's
management fee for its last fiscal year ended December 31, 1995 was
0.38%. "Investment Management Services" in the Statement of Additional
Information contains more complete information about the Agreement,
including a discussion of expense arrangements, exculpation provisions
and portfolio transactions.
The Manager, a wholly-owned subsidiary of OppenheimerFunds, Inc.,
has operated as an investment adviser since 1978. OppenheimerFunds,
Inc. is owned by Oppenheimer Acquisition Corp., a holding company owned
in part by senior management of OppenheimerFunds, Inc., and ultimately
controlled by Massachusetts Mutual Life Insurance Company. The Manager
and its affiliates currently advise U.S. investment companies with
assets aggregating over $50 billion as of March 31, 1996, and having
more than 2.8 million shareholder accounts.
How to Buy Shares
The Fund's shares may be purchased at their offering price, which is
net asset value per share without sales charge. The net asset value
will remain fixed at $1.00 per share, except under extraordinary
circumstances (see "Determination of Net Asset Value Per Share" in the
Statement of Additional Information for further details). There can be
no guarantee that the Fund will maintain a stable net asset value of
$1.00 per share. Centennial Asset Management Corporation (the
"Distributor"), may in its sole discretion accept or reject any order
for purchase of the Fund's shares. OppenheimerFunds Distributor, Inc.
("OFDI") an affiliate of the Distributor, acts as the sub-distributor
for the Fund (the "Sub-Distributor").
The minimum initial investment is $500 ($2,500 if by Federal Funds
wire), except as otherwise described in this Prospectus. Subsequent
purchases must be in amounts of $25 or more, and may be made through
authorized dealers or brokers by forwarding payment to the Distributor
at P.O. Box 5143, Denver, Colorado 80217 with the name(s) of all
account owners, the account number and the name of the Fund. The
minimum initial and subsequent purchase requirements are waived on
purchases made by reinvesting dividends from any of the "Eligible
Funds" listed in "Exchange Privilege" below or by reinvesting
distributions from unit investment trusts for which reinvestment
arrangements have been made with the Distributor. Under an Automatic
Investment Plan, military allotment plan, 403(b)(7) custodial plan or
payroll deduction plan, initial and subsequent investments must be at
least $25. No share certificates will be issued unless specifically
requested by an investor or the dealer or broker.
The Fund intends to be as fully invested as practicable to maximize
its yield. Therefore, dividends will accrue on newly-purchased shares
only after the Distributor accepts the purchase order at its address in
Denver, Colorado, on a day The New York Stock Exchange (the "Exchange")
is open (a "regular business day"), under one of the methods of
purchasing shares described below. The purchase will be made at the
net asset value next determined after the Distributor accepts the
purchase order.
The Fund's net asset value per share is determined twice each
regular business day, at 12:00 Noon and the close of the Exchange that
day, which is normally 4:00 P.M., but may be earlier on some days (all
references to time in this Prospectus mean New York time), by dividing
the net assets of the Fund by the total number of its shares
outstanding. The Fund's Board of Directors has established procedures
for valuing the Fund's assets, using the amortized cost method as
described in "Determination of Net Asset Value Per Share" in the
Statement of Additional Information.
Purchases Through Automatic Purchase and Redemption Programs
Shares of the Fund are available under Automatic Purchase and
Redemption Programs ("Programs") of broker-dealers that have entered
into agreements with the Distributor for that purpose. Broker-dealers
whose clients participate in such Programs will invest the "free cash
balances" in such client's Program account in shares of the Fund
selected as the primary Fund by the client for the program account.
Such purchases will be made by the broker-dealer under the procedures
described in "Guaranteed Payment," below. The Program may have minimum
investment requirements established by the broker-dealer. The
description of the Program provided by the broker-dealer should be
consulted for details, and all questions about investing in, exchanging
or redeeming Fund shares through a Program should be directed to the
broker-dealer.
Direct Purchases
An investor may directly purchase shares of the Fund through any
dealer which has a sales agreement with the Distributor or the
Sub-Distributor. There are two ways to make a direct initial
investment: either (1) complete a Centennial Funds New Account
Application and mail it with payment to the Distributor at P.O. Box
5143, Denver, Colorado 80217 (if no dealer is named in the Application,
the Sub-Distributor will act as the dealer), or (2) order the shares
through your dealer or broker. Purchases made by Application should
have a check enclosed, or payment may be made by one of the alternative
means described below.
- Payment by Check. Orders for shares purchased by check in U.S.
dollars drawn on a U.S. bank will begin to be effected on the regular
business day on which the check (and a purchase application, if the
account is new) is accepted by the Distributor. Dividends will begin
to accrue on such shares the next regular business day after the
purchase order is accepted. For other checks, the shares will not be
purchased until the Distributor is able to convert the purchase payment
to Federal Funds, and dividends will begin to accrue on such shares on
the next regular business day.
- Payment by Federal Funds Wire. Shares may be purchased by direct
shareholders by Federal Funds wire. The minimum investment by wire is
$2,500. The investor must first call the Distributor's Wire Department
at 1-800-852-8457, to notify the Distributor of the transmittal of the
wire and to order the shares. The investor's bank must wire the
Federal Funds to Citibank, N.A., ABA No. 0210-0008-9, for credit to
Concentration Account No. 3723-2796, for further credit to Daily Cash
Accumulation Fund, Inc. (Custodian Account No. 349-294).
The wire must state the investor's name. Shares will be purchased
on the regular business day on which the Federal Funds are received by
Citibank N.A. (the "Custodian") prior to the close of the Exchange,
which is normally 4:00 P.M., but may be earlier on some days and the
Distributor has received and accepted the investor's notification of
the wire order prior to the close of the Exchange. Those shares will
be purchased at the net asset value next determined after receipt of
the Federal Funds and the order. Dividends on newly purchased shares
will begin to accrue on the purchase date if the Federal Funds and
order for the purchase are received and accepted by 12:00 Noon.
Dividends will begin to accrue on the next regular business day if the
Federal Funds and purchase order are received and accepted between
12:00 Noon and the close of the Exchange. The investor must also send
the Distributor a completed Application when the purchase order is
placed to establish a new account.
- Automatic Investment Plan. Direct investors may purchase shares
of the Fund automatically. Automatic Investment Plans may be used to
make regular monthly investments ($25 minimum) from the investor's
account at a bank or other financial institution. To establish an
Automatic Investment Plan from a bank account, a check (minimum $25)
for the initial purchase must accompany the application. Shares
purchased by Automatic Investment Plan payments are subject to the
redemption restrictions for recent purchases described in "How to
Redeem Shares." The amount of the Automatic Investment Plan payment
may be changed or the automatic investments may be terminated at any
time by writing to Shareholder Services, Inc. (the "Transfer Agent").
A reasonable period (approximately 15 days) is required after receipt
of such instructions to implement them. The Fund reserves the right to
amend, suspend or discontinue offering Automatic Investment Plans at
any time without prior notice.
- Guaranteed Payment. Broker-dealers with sales agreements with the
Distributor (including broker-dealers who have made special
arrangements with the Distributor for purchases for Program accounts)
may place purchase orders with the Distributor for purchases of the
Fund's shares prior to 12:00 Noon on a regular business day, and the
order will be effected at net asset value determined at 12:00 Noon that
day if the broker-dealer guarantees that payment for such shares in
Federal Funds will be received by the Fund's Custodian prior to 2:00
P.M., on the same day. Dividends will begin to accrue on the purchase
date. If an order is received between 12:00 Noon and the close of the
Exchange, which is normally 4:00 P.M., on a regular business day, with
the broker-dealer's guarantee that payment for such shares in Federal
Funds will be received by the Fund's Custodian by the close of the
Exchange on the next regular business day, the order will be effected
at the close of the Exchange on the day the order is received, and
dividends on such shares will begin to accrue on the next regular
business day after the Federal Funds are received. If the
broker-dealer guarantees that the Federal Funds payment will be
received by the Fund's Custodian by 2:00 P.M. on a regular business day
on which an order is placed for shares after 12:00 Noon, the order will
be effected at the close of the Exchange that day and dividends will
begin to accrue on such shares on the purchase date.
General
Dealers and brokers who process orders for the Fund's shares on
behalf of their customers may charge a fee for this service. That fee
can be avoided by purchasing shares directly from the Fund. The
Distributor, in its sole discretion, may accept or reject any order for
purchases of the Fund's shares. The sale of shares will be suspended
during any period when the determination of net asset value is
suspended, and may be suspended by the Board of Directors whenever the
Board judges it in the best interest of the Fund to do so.
Service Plan
The Fund has adopted a service plan (the "Plan") under Rule 12b-1 of
the Investment Company Act pursuant to which the Fund will reimburse
the Distributor for all or a portion of its costs incurred in
connection with the personal service and maintenance of accounts that
hold Fund shares. The Distributor will use all the fees received from
the Fund to reimburse dealers, brokers, banks, or other institutions
("Recipients") each month or quarter for providing personal service and
maintenance of accounts that hold Fund shares. The services to be
provided by Recipients under the Plan include, but shall not be limited
to, the following: answering routine inquiries from the Recipient's
customers concerning the Fund, providing such customers with
information on their investment in Fund shares, assisting in the
establishment and maintenance of accounts or sub-accounts in the Fund,
making the Fund's investment plans and dividend payment options
available, and providing such other information and customer liaison
services and the maintenance of accounts as the Distributor or the Fund
may reasonably request. Plan payments by the Fund to the Distributor
will be made monthly or quarterly in the amount of the lesser of: (i)
0.20% annually of the net asset value of the Fund, computed as of the
close of each business day or (ii) the Distributor's actual
distribution expenses for that quarter of the type approved by the
Board. Any unreimbursed expenses incurred for any quarter by the
Distributor may not be recovered in later periods. The Plan has the
effect of increasing annual expenses of the Fund by up to 0.20% of
average annual net assets from what its expenses would otherwise be.
In addition, the Manager may, under the Plan, from time to time from
its own resources (which may include the profits derived from the
advisory fee it receives from the Fund), make payments to Recipients
for distribution, administrative and accounting services performed by
Recipients. For further details, see "Service Plan" in the Statement
of Additional Information.
How to Redeem Shares
Program Participants
A Program participant may redeem shares in the Program by writing
checks as described below, or by contacting the dealer or broker. A
Program participant may also arrange for "Expedited Redemptions," as
described below, only through the dealer or broker.
Shares of the Fund Owned Directly
Shares of the Fund owned by a shareholder directly (not through a
Program) (a "direct shareholder"), may be redeemed in the following
ways:
- Regular Redemption Procedure. To redeem some or all shares in
an account (whether or not represented by certificates) under the
Fund's regular redemption procedure, a direct shareholder must send the
following to the Transfer Agent, Shareholder Services, Inc., P.O. Box
5143, Denver, Colorado 80217 (send courier or express mail deliveries
to 10200 E. Girard Avenue, Building D, Denver, Colorado 80231): (1) a
written request for redemption signed by all registered owners exactly
as the shares are registered, including fiduciary titles, if any, and
specifying the account number and the dollar amount or number of shares
to be redeemed; (2) a guarantee of the signatures of all registered
owners on the redemption request or on the endorsement on the share
certificate or accompanying stock power, by a U.S. bank, trust company,
credit union or savings association, or a foreign bank having a U.S.
correspondent bank, or by a U.S. registered dealer or broker in
securities, municipal securities or government securities, or by a U.S.
national securities exchange, registered securities association or
clearing agency; (3) any share certificates issued for any of the
shares to be redeemed; and (4) any additional documents which may be
required by the Transfer Agent for redemption by corporations,
partnerships or other organizations, executors, administrators,
trustees, custodians, guardians, or from Individual Retirement Accounts
("IRAs") or other retirement plans, or if the redemption is requested
by anyone other than the shareholder(s) of record. A signature
guarantee is not required for redemptions of $50,000 or less, requested
by and payable to all shareholders of record, to be sent to the address
of record for that account. Transfers of shares are subject to similar
requirements.
To avoid delay in redemptions or transfers, shareholders having
questions about these requirements should contact the Transfer Agent in
writing or by calling 1-800-525-9310 before submitting a request. From
time to time the Transfer Agent in its discretion may waive any or
certain of the foregoing requirements in particular cases. Redemption
or transfer requests will not be honored until the Transfer Agent
receives all required documents in proper form.
- Expedited Redemption Procedure. In addition to the regular
redemption procedure set forth above, direct shareholders whose shares
are not represented by certificates may arrange to have redemption
proceeds of $2,500 or more wired in Federal Funds to a designated
commercial bank if the bank is a member of the Federal Reserve wire
system. To place a wire redemption request, call the Transfer Agent at
1-800-852-8457. The account number of the designated financial
institution and the bank ABA number must be supplied to the Transfer
Agent on the Application or dealer settlement instructions establishing
the account or may be added to existing accounts or changed only by
signature-guaranteed instructions to the Transfer Agent from all
shareholders of record. Such redemption requests may be made by
telephone, wire or written instructions to the Transfer Agent. The
wire for the redemption proceeds of shares redeemed prior to 12:00 Noon
normally will be transmitted by the Transfer Agent to the shareholder's
designated bank account on the day the shares are redeemed (or, if that
day is not a bank business day, on the next bank business day). Shares
redeemed prior to 12:00 Noon do not earn dividends on the redemption
date. The wire for the redemption proceeds of shares redeemed between
12:00 Noon and the close of the Exchange, which is normally 4:00 P.M.,
but may be earlier on some days, normally will be transmitted by the
Transfer Agent to the shareholder's designated bank account on the next
bank business day after the redemption. Shares redeemed between 12:00
Noon and the close of the Exchange earn dividends on the redemption
date. There is a $10 fee for each wire. See "Purchase, Redemption and
Pricing of Shares" in the Statement of Additional Information for
further details.
- Check Writing. Upon request, the Transfer Agent will provide
any direct shareholder of the Fund or any Program participant whose
shares are not represented by certificates with forms of drafts
("checks") payable through a bank selected by the Fund (the "Bank").
Checks may be made payable to the order of anyone in any amount not
less than $250, and will be subject to the Bank's rules and regulations
governing checks. Program participants' checks will be payable from
the primary account designated by the Program participant. The
Transfer Agent will arrange for checks written by shareholders to be
honored by the Bank after obtaining a specimen signature card from the
shareholder(s). Program participants should arrange for check writing
through their brokers or dealers. If a check is presented for an
amount greater than the account value, it will not be honored.
Shareholders of joint accounts may elect to have checks honored with a
single signature. Checks issued for one Fund account must not be used
if the shareholder's account has been transferred to a new account or
if the account number or registration has changed. Shares purchased by
check or Automatic Investment Plan payments within the prior 10 days
may not be redeemed by check writing. A check that would require the
redemption of some or all of the shares so purchased is subject to non-
payment. The Bank will present checks to the Fund to redeem shares to
cover the amount of the check. Checks may not be presented for cash
payment at the offices of the Bank or the Fund's Custodian. This
limitation does not affect the use of checks for the payment of bills
or to obtain cash at other banks. The Fund reserves the right to
amend, suspend, or discontinue check writing privileges at any time
without prior notice.
- Telephone Redemptions. Direct shareholders of the Fund may redeem
their shares by telephone by calling the Transfer Agent at
1-800-852-8457. This procedure for telephone redemptions is not
available to Program participants. Proceeds of telephone redemptions
will be paid by check payable to the shareholder(s) of record and sent
to the address of record for the account. Telephone redemptions are
not available within 30 days of a change of the address of record. Up
to $50,000 may be redeemed by telephone in any seven day period. The
Transfer Agent may record any calls. Telephone redemptions may not be
available if all lines are busy, and shareholders would have to use the
Fund's regular redemption procedure described above. Telephone
redemption privileges are not available for newly-purchased (within the
prior 10 days) shares or for shares represented by certificates.
Telephone redemption privileges apply automatically to each shareholder
and the dealer representative of record unless the Transfer Agent
receives cancellation instructions from a shareholder of record. If an
account has multiple owners, the Transfer Agent may rely on the
instructions of any one owner.
- Automatic Withdrawal Plan. Direct shareholders of the Fund can
authorize the Transfer Agent to redeem shares (minimum $50)
automatically on a monthly, quarterly semi-annual or annual basis under
an Automatic Withdrawal Plan. Shares will be redeemed as of the close
of The New York Stock Exchange, which is normally 4:00 P.M. (but may be
earlier on some days), three days prior to the date requested by the
shareholder for receipt of the payment. The Fund cannot guarantee
receipt of payment on the date requested and reserves the right to
amend, suspend or discontinue offering such Plans at any time without
prior notice. Required minimum distributions from OppenheimerFunds-
sponsored retirement plans may not be arranged on this basis. For
further details, see the "Automatic Withdrawal Plan Provisions,"
Appendix B to the Statement of Additional Information.
General Information on Redemptions
Payment for redeemed shares is made ordinarily in cash and forwarded
within seven days of the Transfer Agent's receipt of redemption
instructions in proper form, except under unusual circumstances as
determined by the SEC. For accounts registered in the name of a
broker-dealer, payment will be forwarded within three business days.
The Transfer Agent may delay forwarding a redemption check for recently
purchased shares only until the purchase payment has cleared, which may
take up to 10 days or more from the purchase date. Such delay may be
avoided if the shareholder arranges telephone or written assurance
satisfactory to the transfer agent from the bank on which the purchase
payment was drawn, or by purchasing shares by Federal Funds wire as
described above. Under the Internal Revenue Code, the Fund may be
required to impose "back-up" withholding of Federal income tax at the
rate of 31% from dividends and distributions the Fund may make if the
shareholder has not furnished the Fund a certified taxpayer
identification number or has not complied with the provisions of the
Internal Revenue Code relating to reporting dividends. The Fund makes
no charge for redemption of shares. Dealers or brokers may charge a
fee for handling redemption transactions but such fee can be avoided by
requesting the redemption directly by the Fund through the Transfer
Agent. Under certain circumstances, proceeds of redemptions of shares
of the Fund acquired by exchange of shares of Eligible Funds that were
purchased subject to a "contingent deferred sales charge" ("CDSC") may
be subject to the CDSC (see "Exchange Privilege" below).
Distributions from Retirement Plans
Requests for distributions from OppenheimerFunds-sponsored
Individual Retirement Accounts ("IRAs"), 403(b)(7) custodial plans, or
pension or profit-sharing plans of direct shareholders for which the
Manager or its affiliates act as sponsors should be addressed to "Bank
of Boston, c/o Shareholder Services, Inc." at the above address, and
must (i) state the reason for the distribution, (ii) state the owner's
awareness of tax penalties if the distribution is premature, and (iii)
conform to the requirements of the plan and the Fund's requirements for
regular redemptions discussed above. Participants (other than self-
employed persons) in OppenheimerFunds-sponsored pension or profit-
sharing plans may not directly request redemption of their accounts.
The employer or plan administrator must sign the request.
Distributions from such plans are subject to additional requirements
under the Internal Revenue Code of 1986, as amended (the "Internal
Revenue Code"), and certain documents (available from the Transfer
Agent) must be completed before the distribution may be made.
Distributions from retirement plans are subject to withholding
requirements under the Internal Revenue Code, and IRS Form W-4P
(available from the Transfer Agent) must be submitted to the Transfer
Agent with the distribution request, or the distribution may be
delayed. Unless the shareholder has provided the Transfer Agent with a
certified tax identification number, the Internal Revenue Code requires
that tax be withheld from any distribution, even if the shareholder
elects not to have tax withheld. The Trustee, the Fund, the Manager,
the Distributor and the Transfer Agent assume no responsibility to
determine whether a distribution satisfies the conditions of applicable
tax laws and will not be responsible for any penalties assessed.
Exchanges of Shares and Retirement Plans
Exchange Privilege
Shares of the Fund held under a Program may be exchanged for shares
of Centennial Money Market Trust, Centennial Government Trust,
Centennial Tax Exempt Trust, Centennial California Tax Exempt Trust and
Centennial New York Tax Exempt Trust if available for sale in the
shareholder's state of residence only by instructions of the broker.
Shares of the Fund may, under certain conditions, be exchanged by
direct shareholders for Class A shares of certain "Eligible Funds"
which are listed in the Statement of Additional Information. Direct
shareholders may also obtain a list of the Eligible Funds by calling
the transfer agent at 1-800-525-9310. The list of Eligible Funds may
change from time to time.
Shares of the Fund and of the other Eligible Funds may be exchanged,
if all of the following conditions are met: (1) shares of the fund
selected for exchange are available for sale in the shareholder's state
of residence; (2) the respective prospectuses of the funds whose shares
are to be exchanged and acquired offer the Exchange Privilege to the
investor; (3) newly-purchased shares (by initial or subsequent
investment) are held in an account for at least seven days prior to the
exchange; and (4) the aggregate net asset value of the shares
surrendered for exchange into a new account is at least equal to the
minimum investment requirements of the fund whose shares are to be
acquired.
In addition to the conditions stated above, shares of the Fund may
be exchanged for shares of any Money Market Fund at net asset value. A
list of the Money Market Funds appears in the Statement of Additional
Information. Shares of any Money Market Fund (including the Fund)
purchased without a sales charge may be exchanged for shares of
Eligible Funds offered with a sales charge upon payment of the sales
charge (or, if applicable, may be used to purchase shares of Eligible
Funds subject to a CDSC); and shares of the Fund acquired by
reinvestment of dividends and distributions from any Eligible Fund
(except Oppenheimer Cash Reserves) or from any unit investment trust
for which reinvestment arrangements have been made with the Distributor
may be exchanged at net asset value for shares of any Eligible Fund.
The redemption proceeds of shares of the Fund acquired by exchange of
Class A shares of an Eligible Fund purchased subject to a CDSC, that
are redeemed within 18 months of the end of the calendar month of the
initial purchase of the exchanged shares, will be subject to the CDSC
as described in the prospectus of that other Eligible Fund. In
determining whether the CDSC is payable, shares of the fund not subject
to the CDSC are redeemed first, including shares purchased by
reinvestment of dividends and capital gains distributions from any
Eligible Fund or shares of the fund acquired by exchange of shares of
Eligible Funds on which a front-end sales charge was paid or credited,
and then other shares are redeemed in the order of purchase.
- How to Exchange Shares. An exchange may be made by direct
shareholders by submitting an Exchange Authorization Form to the
Transfer Agent, signed by all registered owners. In addition, direct
shareholders of the Fund may exchange shares of the Fund for Class A
shares of any Eligible Fund by telephone exchange instructions to the
Transfer Agent by a shareholder or the dealer representative of record
for an account. The Fund may modify, suspend or discontinue this
exchange privilege at any time. Although the Fund will attempt to
provide you with notice whenever reasonably able to do so, it may
impose these changes at anytime. The Fund reserves the right to reject
multiple exchange requests submitted by a shareholder or dealer.
Exchange requests must be received by the Transfer Agent by the close
of the Exchange on a regular business day to be effected that day. The
number of shares exchanged may be less than the number requested if the
number requested would include shares subject to a restriction cited
above or shares covered by a certificate that is not tendered with such
request. Only the shares available for exchange without restriction
will be exchanged.
- Telephone Exchanges. Direct shareholders may place a telephone
exchange request by calling the Transfer Agent at 1-800-852-8457.
Telephone exchanges are subject to the rules described above. By
exchanging shares by telephone, the shareholder is acknowledging
receipt of a prospectus of the fund to which the exchange is made and
that for full exchanges, any special account features such as Automatic
Investment Plans, Automatic Withdrawal Plans and retirement plan
contributions will be switched to the new account unless the Transfer
Agent is otherwise instructed. Telephone exchange privileges
automatically apply to each direct shareholder of record and the dealer
representative of record unless and until the Transfer Agent receives
written instructions from the shareholder(s) of record canceling such
privileges. If an account has multiple owners, the Transfer Agent may
rely on the instructions of any one owner. Shares acquired by
telephone exchange must be registered exactly as the account from which
the exchange was made. Certificated shares are not eligible for
telephone exchange. If all telephone exchange lines are busy (which
might occur, for example, during periods of substantial market
fluctuations), shareholders might not be able to request telephone
exchanges and would have to submit written exchange requests.
- General Information on Exchanges. Shares to be exchanged are
redeemed on the day the Transfer Agent receives an exchange request in
proper form (the "Redemption Date"), as of the close of the Exchange,
which is normally 4:00 P.M., but may be earlier on some days.
Normally, shares of the fund to be acquired are purchased on the
Redemption Date, but such purchases may be delayed by either fund up to
five business days if it determines that it would be disadvantaged by
an immediate transfer of the redemption proceeds. The Fund in its
discretion reserves the right to refuse any exchange request that will
disadvantage it.
The Eligible Funds have different investment objectives and
policies. Each of those funds imposes a sales charge on purchases of
Class A shares except the Money Market Funds. For complete
information, including sales charges and expenses, a prospectus of the
fund into which the exchange is being made should be read prior to an
exchange. Dealers and brokers who process exchange orders on behalf of
their customers may charge for their services. Direct shareholders may
avoid those charges by requesting the Fund directly to exchange shares.
For Federal tax purposes, an exchange is treated as a redemption and
purchase of shares.
The Transfer Agent has adopted reasonable procedures to confirm that
telephone instructions are genuine, by requiring callers to provide tax
identification number(s) and other account data and by recording calls
and confirming such transactions in writing. If the Transfer Agent
does not use such procedures, it may be liable for losses due to
unauthorized transactions, but otherwise neither it nor the Fund will
be liable for losses or expenses arising out of telephone instructions
reasonably believed to be genuine. The Transfer Agent reserves the
right to require shareholders to confirm, in writing, telephone
exchange or redemption privileges for an account.
Retirement Plans
The Distributor has available for direct shareholders who purchase
shares of the Fund: (i) individual retirement accounts ("IRAs")
including Simplified Employee Pension Plans (SEP IRAs); (ii) prototype
pension and profit-sharing plans for corporations and self-employed
individuals; and (iii) 403(b)(7) custodial plans for employees of
public educational institutions and organizations of the type described
in Section 501(c)(3) of the Internal Revenue Code. The minimum initial
IRA, SEP IRA, pension or profit-sharing plan investment is normally
$250. The minimum initial 403(b)(7) plan investment is $25. For
further details, including the administrative fees, the appropriate
retirement plan should be requested from the Distributor. The Fund
reserves the right to discontinue offering its shares to such plans at
any time without prior notice.
Dividends, Distributions and Taxes
This discussion relates solely to Federal tax laws and is not
exhaustive; a qualified tax adviser should be consulted. Dividends and
distributions may be subject to Federal, state and local taxation. See
"Tax Status of the Fund's Dividends and Distributions" in the Statement
of Additional Information for a further discussion of tax matters
affecting the Fund and its distributions, as well as a procedure for
electing to reinvest dividends and distributions of any of the Eligible
Funds into shares of the Fund at net asset value.
Dividends and Distributions
The Fund intends to declare all of its net income, as defined below,
as dividends on each regular business day and to pay dividends monthly.
Dividends will be payable to shareholders as described above in "How
toBuy Shares." All dividends and capital gains distributions for
accounts of Program participants are automatically reinvested in Fund
shares. Dividends accumulated since the prior payment will be
reinvested in full and fractional shares at net asset value on the
third Thursday of each calendar month. If a shareholder redeems all
shares at any time during a month, the redemption proceeds include all
dividends accrued up to the redemption date for shares redeemed prior
to 12:00 Noon, and include all dividends accrued through the redemption
date for shares redeemed between 12:00 Noon and the close of the
Exchange. Program participants may receive cash payments by asking the
broker to redeem shares.
Participants in an A.G. Edwards & Sons, Inc. Cash Convenience
Account Program (other than those whose account is an Individual
Retirement Account) holding shares of the Fund will receive account
statements five times a year, at the end of March, May, August, October
and December, if the only activity in their account during that period
is the automatic reinvestment of dividends.
Dividends and distributions payable to direct shareholders of the
Fund will also be automatically reinvested in shares of the Fund at net
asset value, on the third Thursday of each calendar month, unless the
shareholder asks the Transfer Agent in writing to pay dividends and
distributions in cash or to reinvest them in another Eligible Fund, as
described in "Dividend Reinvestment in Another Fund" in the Statement
of Additional Information. That notice must be received prior to the
record date for a dividend to be effective as to that dividend.
Dividends, distributions and the proceeds of redemptions of Fund shares
represented by checks returned to the Transfer Agent by the Postal
Service as undeliverable will be reinvested in shares of the Fund, as
promptly as possible after the return of such check to the Transfer
Agent to enable the investor to earn a return on otherwise idle funds.
Under the terms of a Program, a broker-dealer may pay out the value
of some or all of a Program participant's Fund shares prior to
redemption of such shares by the Fund. In such cases, the shareholder
will be entitled to dividends on such shares only up to and including
the date of such payment. Dividends on such shares accruing between
the date of payment and the date such shares are redeemed by the Trusts
will be paid to the broker-dealer. Program participants should discuss
these arrangements with their broker-dealer.
The Fund's net investment income for dividend purposes consists of
all interest accrued on portfolio assets, less all expenses of the Fund
for such period. Distributions from net realized gains on securities,
if any, will be paid at least once each year, and may be made more
frequently in compliance with the Internal Revenue Code and the
Investment Company Act. Long-term capital gains, if any, will be
identified separately when tax information is distributed. The Fund
will not make any distributions from net realized securities gains
unless capital loss carry forwards, if any, have been used or have
expired. Any net realized capital loss is carried forward to offset
against gains in later years. To effect its policy of maintaining a
net asset value of $1.00 per share, the Fund, under certain
circumstances, may withhold dividends or make distributions from
capital or capital gains.
Tax Status of the Fund's Dividends and Distributions
Dividends paid by the Fund derived from net investment income or
net short-term capital gains are taxable to shareholders as ordinary
income, whether received in cash or reinvested, and will not be
eligible for the dividends-received deduction for corporations. If the
Fund has net realized long-term capital gains in a fiscal year, it may
pay an annual "long-term capital gains distribution," which will be so
identified when paid and when tax information is distributed. Long-
term gains are taxable to shareholders as long-term capital gains
whether received in cash or reinvested, and regardless of how long the
Fund shares have been held. For information on "backup" withholding on
dividends, see "General Information on Redemptions," above.
Tax Status of the Fund
If the Fund qualifies as a "regulated investment company" under the
Internal Revenue Code, it will not be liable for Federal income taxes
on amounts paid by it as dividends and distributions. The Fund
qualified during its last fiscal year and intends to qualify in current
and future fiscal years, while reserving the right not to qualify.
However, the Internal Revenue Code contains a number of complex tests
relating to such qualification which the Fund might not meet in any
particular fiscal year. If the Fund does not qualify, it would be
treated for Federal tax purposes as an ordinary corporation and receive
no tax deduction for payments made to shareholders.
Additional Information
Description of Capital Stock
The Fund's shares are of one class, are transferable without
restriction, and have equal rights and privileges. Each share of the
Fund entitles the holder to one vote per share (and a fractional vote
for a fractional share) on matters submitted to a shareholder vote, and
to participate pro rata in dividends and distributions and in the net
distributable assets of the Fund on liquidation. The Directors may
divide or combine the shares into a greater or lesser number of shares
without thereby changing the proportionate beneficial interest in the
Fund. Shares of the Fund have equal liquidation rights as to the
assets of the Fund. When issued, shares of the Fund are fully-paid and
nonassessable, and have no preemptive, conversion or exchange rights.
Under the provisions of the Fund's By-Laws and as permitted by Maryland
law, the Fund does not anticipate holding annual meetings.
The Custodian and the Transfer Agent
The Custodian of the assets of the Fund is Citibank, N.A. The
Manager and its affiliates presently have banking relationships with
the Custodian. See "Additional Information" in the Statement of
Additional Information for further information. The Fund's cash
balances in excess of $100,000 held by the Custodian are not protected
by Federal deposit insurance. Such uninsured balances may at times be
substantial. The foregoing rating restrictions under Rule 2a-7
described under "The Fund and Its Investment Policies" do not apply to
banks in which the Fund's cash is kept.
Shareholder Services, Inc., a subsidiary of OppenheimerFunds, Inc.,
acts as Transfer Agent and shareholder servicing agent for the Fund and
other mutual funds advised by the Manager on an at-cost basis. The
fees to the Transfer Agent do not include payments for any services of
the type paid or to be paid, by the Fund to the Distributor and to
Recipients under the Service Plan. Shareholders should direct any
inquiries regarding the Fund to the Transfer Agent at the address and
toll-free phone number on the back cover. Program participants should
direct any inquiries regarding the Fund to their broker.
<PAGE>
Investment Adviser and Distributor
Centennial Asset Management Corporation
3410 South Galena Street
Denver, Colorado 80231
Transfer and Shareholder Servicing Agent
Shareholder Services, Inc.
P.O. Box 5143
Denver, Colorado 80217-5143
1-800-525-9310
Custodian of Portfolio Securities
Citibank, N.A.
399 Park Avenue
New York, New York 10043
Independent Auditors
Deloitte & Touche LLP
555 Seventeenth Street, Suite 3600
Denver, Colorado 80202
Legal Counsel
Myer, Swanson, Adams & Wolf, P.C.
The Colorado State Bank Building
1600 Broadway - Suite 1480
Denver, Colorado 80202
No dealer, broker, salesperson or any other person has been authorized
to give any information or to make any representations other than those
contained in this Prospectus or the Statement of Additional
Information, and if given or made, such information and representations
must not be relied upon as having been authorized by the Fund, the
Distributor, or any affiliate thereof. This Prospectus does not
constitute an offer to sell or a solicitation of an offer to buy any of
the securities offered hereby in any state to any person to whom it is
unlawful to make such offer in such state.
PRO.140.001.0496 Printed on recycled paper
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
DAILY CASH ACCUMULATION FUND, INC.
3410 South Galena Street, Denver, Colorado 80231
1-800-525-9310
This Statement of Additional Information is not a Prospectus.
This Statement of Additional Information should be read together with the
Prospectus, dated May 1, 1996 (the "Prospectus"), of Daily Cash
Accumulation Fund, Inc. (the "Fund"), which may be obtained by writing to
Shareholder Services, Inc. ( the "Transfer Agent"), P.O. Box 5143, Denver,
Colorado 80217, or by calling the toll-free number shown above.
TABLE OF CONTENTS
Page
Investment Objective and Policies
Yield Information
Investment Restrictions
Directors and Officers
Investment Management Services
Purchase, Redemption and Pricing of Shares
Service Plan
Additional Information
Independent Auditors' Report
Financial Statements
Appendix A: Description of Securities RatingsA-1
Appendix B: Automatic Withdrawal Plan ProvisionsB-1
Appendix C: Industry ClassificationsC-1
This Statement of Additional Information is effective May 1, 1996.
<PAGE>
INVESTMENT OBJECTIVE AND POLICIES
The investment objective and policies of the Fund are described in the
Prospectus. Supplemental information about those policies is set forth
below. Certain capitalized terms used in this Statement of Additional
Information are defined in the Prospectus.
The Fund will not make investments with the objective of seeking
capital growth. However, the value of the securities held by the Fund may
be affected by changes in general interest rates. Because the current
value of debt securities varies inversely with changes in prevailing
interest rates, if interest rates increase after a security is purchased
that security would normally decline in value. Conversely, should
interest rates decrease after a security is purchased, its value would
rise. However, those fluctuations in value will not generally result in
realized gains or losses to the Fund since the Fund does not usually
intend to dispose of securities prior to their maturity. A debt security
held to maturity is redeemable by its issuer at full principal value plus
accrued interest. To a limited degree, the Fund may engage in short-term
trading to attempt to take advantage of short-term market variations, or
may dispose of a portfolio security prior to its maturity if, on the basis
of a revised credit evaluation of the issuer or other considerations, the
Fund believes such disposition advisable or it needs to generate cash to
satisfy redemptions. In such cases, the Fund may realize a capital gain
or loss.
Ratings of Securities. The Prospectus describes "Eligible Securities" in
which the Fund may invest and indicates that if a security's rating is
downgraded, the Manager and/or the Board may have to reassess the
security's credit risks. If a security has ceased to be a First Tier
Security, the Manager will promptly reassess whether the security
continues to present "minimal credit risks." If the Manager becomes aware
that any Rating Organization has downgraded its rating of a Second Tier
Security or rated an unrated security below its second highest rating
category, the Fund's Board of Directors shall promptly reassess whether
the security presents minimal credit risks and whether it is in the best
interests of the Fund to dispose of it; but if the Fund disposes of the
security within five days of the Manager's learning of the downgrade, the
Manager will provide the Board with subsequent notice of such downgrade.
If a security is in default, or ceases to be an Eligible Security, or is
determined no longer to present minimal credit risks, the Board must
determine whether it would be in the best interests of the Fund to dispose
of the security. The Rating Organizations currently designated as such
by the SEC are Standard & Poor's Corporation, Moody's Investors Service,
Inc., Fitch Investors Services, Inc., Duff and Phelps, Inc., IBCA Limited
and its affiliate, IBCA, Inc. and Thomson BankWatch, Inc. A description
of the ratings categories of those Rating Organizations is contained in
Appendix A.
Floating Rate/Variable Rate Obligations. The Fund may invest in
instruments with floating or variable interest rates. The interest rate
on a floating rate obligation is based on a stated prevailing market rate,
such as a bank's prime rate, the 90-day U.S. Treasury Bill rate, the rate
of return on commercial paper or bank certificates of deposit, or some
other standard, and is adjusted automatically each time such market rate
is adjusted. The interest rate on a variable rate obligation is also
based on a stated prevailing market rate but is adjusted automatically at
a specified interval of no more than one year. Some variable rate or
floating rate obligations in which the Fund may invest have a demand
feature entitling the holder to demand payment at an amount approximately
equal to amortized cost or the principal amount thereof plus accrued
interest at any time, or at specified intervals not exceeding one year.
These notes may or may not be backed by bank letters of credit.
Variable rate demand notes may include master demand notes, discussed
below. The Manager, on behalf of the Fund, will consider on an ongoing
basis the creditworthiness of the issuers of the floating and variable
rate obligations in the Fund's portfolio. There is no limit on the amount
of the Fund's assets that may be invested in floating rate and variable
rate obligations.
Repurchase Agreements. In a repurchase transaction, the Fund acquires a
security from, and simultaneously resells it to, an approved vendor (a
U.S. commercial bank or the U.S. branch of a foreign bank having total
domestic assets of at least $1 billion or a broker-dealer with a net
capital of at least $50 million and which has been designated a primary
dealer in government securities). The resale price exceeds the purchase
price by an amount that reflects an agreed-upon interest rate effective
for the period during which the repurchase agreement is in effect. The
majority of these transactions run from day to day, and delivery pursuant
to resale typically will occur within one to five days of the purchase.
Repurchase agreements are considered "loans" under the Investment Company
Act collateralized by the underlying security. The Fund's repurchase
agreements require that at all times while the repurchase agreement is in
effect, the value of the collateral must equal or exceed the repurchase
price to fully collateralize the repayment obligation. Additionally, the
Manager will impose creditworthiness requirements to confirm that the
vendor is financially sound and will continuously monitor the collateral's
value.
Master Demand Notes. A master demand note is a corporate obligation that
permits the investment of fluctuating amounts by the Fund at varying rates
of interest pursuant to direct arrangements between the Fund, as lender,
and the corporate borrower that issues the note. These notes permit daily
changes in the amounts borrowed. The Fund has the right to increase the
amount under the note at any time up to the full amount provided by the
note agreement, or to decrease the amount, and the borrower may repay up
to the full amount of the note at any time without penalty. Because
variable amount master demand notes are direct lending arrangements
between the lender and the borrower, it is not generally contemplated that
such instruments will be traded. There is no secondary market for these
notes, although they are redeemable and thus immediately repayable by the
borrower at face value, plus accrued interest, at any time. Accordingly,
the Fund's right to redeem is dependent on the ability of the borrower to
pay principal and interest on demand. In evaluating the master demand
note arrangements, the Manager considers the earning power, cash flow, and
other liquidity ratios of the issuer. Master demand notes are not
typically rated by credit rating agencies. If they are not rated, the
Fund may invest in them only if, at the time of an investment, they are
Eligible Securities. The Manager will continuously monitor the borrower's
financial ability to meet all of its obligations because the Fund's
liquidity might be impaired if the borrower were unable to pay principal
and interest on demand.
Loans of Portfolio Securities. The Fund may lend its portfolio securities
subject to the restrictions stated in the Prospectus, to attempt to raise
the Fund's income to distribute to shareholders. Under applicable
regulatory requirements (which are subject to change), the loan collateral
must, on each business day, at least equal the market value of the loaned
securities and must consist of cash, bank letters of credit or U.S.
Government securities, or other cash equivalents which the Fund is
permitted to purchase. To be acceptable as collateral, letters of credit
must obligate a bank to pay amounts demanded by the Fund if the demand
meets the terms of the letter. The Fund receives an amount equal to the
dividends or interest on loaned securities and also receives one or more
of (a) negotiated loan fees, (b) interest on securities used as
collateral, or (c) interest on short-term debt securities purchased with
such loan collateral; either type of interest may be shared with the
borrower. The Fund may also pay reasonable finder's, custodian and
administrative fees and will not lend its portfolio securities to any
officer, trustee, employee or affiliate of the Fund or the Manager. The
terms of the Fund's loans must meet applicable tests under the Internal
Revenue Code and permit the Fund to reacquire loaned securities on five
business days' notice or in time to vote on any important matter.
Illiquid and Restricted Securities. Illiquid securities in which the Fund
may invest include issues which only may be redeemed by the issuer upon
more than seven days notice or at maturity, repurchase agreements maturing
in more than seven days, fixed time deposits subject to withdrawal
penalties which mature in more than seven days, and other securities which
cannot be sold freely due to legal or contractual restrictions on resale.
Contractual restrictions on the resale of illiquid securities might
prevent or delay their sale by the Fund at a time when such sale would be
desirable. Restricted securities that are not illiquid, in which the Fund
may invest, include certain master demand notes redeemable on demand, and
short-term corporate debt instruments which are not related to current
transactions of the issuer and therefore are not exempt from registration
as commercial paper, as described in the Prospectus.
Bank Loan Participation Agreements. The Fund may invest in bank loan
participation agreements, subject to the investment limitation set forth
in "The Fund and Its Investment Policies - Illiquid and Restricted
Securities" in the Prospectus. These participation agreements give the
Fund an undivided interest in U.S. dollar-denominated loans made by the
bank selling the participation interests, in the proportion that the
Fund's participation interest bears to the total principal amount of the
loan. The selling bank may not have any obligation to the purchaser of
the interest other than to pay to it principal and interest on the loan
if and when received by the selling bank. The Manager has set certain
creditworthiness standards for issuers of loan participations, and
monitors their creditworthiness. Participation interests are considered
investments in illiquid securities (see "Illiquid and Restricted
Securities," above). Their value primarily depends upon the
creditworthiness of the borrower, and its ability to pay interest and
principal. Borrowers may have difficulty making payments. If a borrower
fails to make scheduled interest or principal payments, the Fund could
experience a reduction in its income and a decline in the net asset value
of its shares. Therefore, the loan must be an obligation of a corporation
whose commercial paper or corporate debt obligations the Fund may
purchase. The Fund will only purchase participation interests from a bank
in whose obligations the Fund may invest, and subject to the restriction
described above on investments in illiquid securities. Only loans which
mature in one year or less may be the subject of participation interests.
YIELD INFORMATION
The Fund's current yield is calculated for a seven-day period of time,
determined in accordance with regulations adopted under the Investment
Company Act as follows. First, a base period return is calculated for the
seven-day period by determining the net change in the value of a
hypothetical pre-existing account having one share at the beginning of the
seven day period. The change includes dividends declared on the original
share and dividends declared on any shares purchased with dividends on
that share, but such dividends are adjusted to exclude any realized or
unrealized capital gains or losses affecting the dividends declared.
Next, the base period return is multiplied by 365/7 to obtain the current
yield to the nearest hundredth of one percent. The compounded effective
yield for a seven-day period is calculated by (a) adding 1 to the base
period return (obtained as described above), (b) raising the sum to a
power equal to 365 divided by 7, and (c) subtracting 1 from the result.
For the seven days ended December 31, 1995, the Fund's yield was 5.10% and
its compounded effective yield was 5.23%.
The yield as calculated above may vary for accounts less than
approximately $100 in value due to the effect of rounding off each daily
dividend to the nearest full cent. Since the calculation of yield under
either procedure described above does not take into consideration any
realized or unrealized gains or losses on the Fund's portfolio securities
which may affect dividends, the return on dividends declared during a
period may not be the same on an annualized basis as the yield for that
period.
Yield information may be useful to investors in reviewing the Fund's
performance. The Fund may make comparisons between its yield and that of
other investments, by citing various indices such as The Bank Rate Monitor
National Index (provided by Bank Rate Monitor TM), which measures the
average rate paid on bank money market accounts, NOW accounts and
certificates of deposit by the 100 largest banks and thrift institutions
in the top ten metropolitan areas. However, a number of factors should
be considered before using yield information as a basis for comparison
with other investments. An investment in the Fund is not insured. Its
yield is not guaranteed and normally will fluctuate on a daily basis. The
yield for any given past period is not an indication or representation by
the Fund of future yields or rates of return on its shares. The Fund's
yield is affected by portfolio quality, portfolio maturity, type of
instruments held and operating expenses. When comparing the Fund's yield
with that of other investments, investors should understand that certain
other investment alternatives such as certificates of deposit, U.S.
government securities, money market instruments or bank accounts may
provide fixed yields or yields that may vary above a stated minimum, and
also that bank accounts may be insured. Certain types of bank accounts
may not pay interest when the balance falls below a specified level and
may limit the number of withdrawals by check per month.
INVESTMENT RESTRICTIONS
The Fund's most significant investment restrictions are described in
the Prospectus. The following investment restrictions are also
fundamental policies and, together with the fundamental investment
policies and restrictions described in the Prospectus, cannot be changed
without the vote of a "majority" of the Fund's outstanding shares. Under
the Investment Company Act, such a "majority" vote is defined as the vote
of the holders of the lesser of:(i) 67% or more of the shares present or
represented by proxy at a shareholder's meeting, if the holders of more
than 50% of the outstanding shares are present or represented by proxy,
or (ii) more than 50% of the outstanding shares. Under these additional
restrictions, the Fund cannot do any of the following:
- -- The Fund cannot invest in commodities or commodity contracts, or invest
in interests in oil, gas, or other mineral exploration or development
programs;
- -- The Fund cannot invest in real estate; however, the Fund may purchase
debt securities issued by companies which invest in real estate or
interests therein;
- -- The Fund cannot purchase securities on margin or make short sales of
securities;
- -- The Fund cannot invest in or hold securities of any issuer if those
officers and directors of the Fund or its adviser who beneficially own
individually more than 0.5% of the securities of such issuer together own
more than 5% of the securities of such issuer;
- -- The Fund cannot underwrite securities of other companies;
- -- The Fund cannot invest more than 5% of the value of its total assets
in securities of companies that have operated less than three years,
including the operations of predecessors; and
- -- The Fund cannot invest in securities of other investment companies.
For purposes of the Fund's policy not to concentrate described in
"Investment Restrictions" in the Prospectus, the Fund has adopted, as a
matter of non-fundamental policy, the industry classifications set forth
in Appendix C to this Statement of Additional Information.
DIRECTORS AND OFFICERS
The Directors and officers of the Fund and their principal business
affiliations and occupations during the past five years are listed below.
All of the Directors are also trustees, directors, or managing general
partners of Centennial Money Market Trust, Centennial Government Trust,
Centennial Tax Exempt Trust, Centennial New York Tax Exempt Trust,
Centennial California Tax Exempt Trust and Centennial America Fund, L.P.
(collectively, the "Centennial Trusts"), Oppenheimer Equity Income Fund,
Oppenheimer Total Return Fund, Inc., Oppenheimer High Yield Fund,
Oppenheimer Cash Reserves, The New York Tax-Exempt Income Fund, Inc.,
Oppenheimer Limited-Term Government Fund, Oppenheimer International Bond
Fund, Oppenheimer Tax-Exempt Fund, Oppenheimer Variable Account Funds,
Oppenheimer Main Street Funds, Inc., Oppenheimer Champion Income Fund,
Oppenheimer Integrity Funds, Oppenheimer Strategic Income Fund and
Oppenheimer Strategic Income & Growth Fund (all of the foregoing funds are
collectively referred to as the "Denver-based Oppenheimer funds"). All
officers except Ms. Wolf, Ms. Warmack and Mr. Zimmer hold similar
positions with such other funds. Ms. Macaskill is President and Mr. Swain
is Chairman of the Denver-based Oppenheimer funds. As of April 19, 1996,
the Directors and officers of the Fund as a group owned less than 1% of
the Fund's outstanding shares. The foregoing statement does not reflect
ownership of shares held of record by an employee benefit plan for
employees of the Manager (for which three of the officers listed below,
Ms. Macaskill, Messrs. Fossel and Donohue, are trustees), other than the
shares beneficially owned under the plan by the officers of the Fund
listed above.
ROBERT G. AVIS, Director*; Age: 64
One North Jefferson Avenue, St. Louis, Missouri 63103
Vice Chairman of A.G. Edwards & Sons, Inc. (a broker-dealer) and A.G.
Edwards, Inc. (its parent holding company); Chairman of A.G.E. Asset
Management and A.G. Edwards Trust Company (its affiliated investment
adviser and trust company, respectively).
WILLIAM A. BAKER, Director; Age: 81
197 Desert Lakes Drive, Palm Springs, California 92264
Management Consultant.
__________________
*A Director who is an "interested person" of the Fund as defined in the
Investment Company Act.
CHARLES CONRAD, JR., Director; Age: 65
1501 Quail Street, Newport Beach, California 92660
Chairman and Chief Executive Officer of Universal Space Lines, Inc;
formerly Vice President of McDonnell Douglas Space Systems Co.;
associated with the National Aeronautics and Space Administration.
JON S. FOSSEL, Director*; Age: 54
Two World Trade Center, New York, New York 10048
Chairman and a Director of OFI; Director of Oppenheimer Acquisition
Corp. ("OAC"), OFI's parent holding company; a President and a
director of HarbourView Asset Management Corporation ("HarbourView"),
an investment advisory subsidiary of OFI; a Director of the Transfer
Agent and Shareholder Financial Services, Inc. ("SFSI"), transfer
agent subsidiaries of OFI; formerly President of OFI.
RAYMOND J. KALINOWSKI, Director; Age: 66
44 Portland Drive, St. Louis, Missouri 63131
Director of Wave Technologies International, Inc.; formerly Vice
Chairman and Director of A.G. Edwards, Inc., parent holding company
of A.G. Edwards & Sons, Inc. (a broker-dealer), of which he was a
Senior Vice President.
C. HOWARD KAST, Director; Age: 74
2552 East Alameda, Denver, Colorado 80209
Formerly Managing Partner of Deloitte Haskins & Sells (an accounting
firm).
ROBERT M. KIRCHNER, Director; Age: 74
7500 E. Arapahoe Road, Englewood, Colorado 80112
President of The Kirchner Company (management consultants).
BRIDGET A. MACASKILL, President and Trustee*; Age: 47
Two World Trade Center, New York, New York 10048
President, Chief Executive Officer and a Director of the Manager;
Chairman and a Director of SSI, President and a Director of OAC and
HarbourView; and a Director of Oppenheimer Partnership Holdings, Inc.,
a holding company subsidiary of the Manager; formerly an Executive
Vice President of the Manager.
NED M. STEEL, Director; Age: 81
3416 South Race Street, Englewood, Colorado 80110
Chartered Property and Casualty Underwriter; Director of Visiting
Nurse Corporation of Colorado; formerly Senior Vice President and a
Director of the Van Gilder Insurance Corp. (insurance brokers).
JAMES C. SWAIN, Director and Chairman*; Age: 62
3410 South Galena Street, Denver, Colorado 80231
Vice Chairman of OFI; formerly President and a Director of the Manager
and Chairman of the Board of the Transfer Agent.
ANDREW J. DONOHUE, Vice President and Secretary; Age: 45
Two World Trade Center, New York, New York 10048
Executive Vice President and General Counsel of OFI and
OppenheimerFunds Distributor, Inc. ("OFDI"); President and a Director
of the Manager; an officer of other Oppenheimer funds; formerly Senior
Vice President and Associate General Counsel of OFI and OFDI; Partner
in Kraft & McManimon (a law firm); an officer of First Investors
Corporation (a broker-dealer) and First Investors Management Company,
Inc. (broker-dealer and investment adviser); director and an officer
of First Investors Family of Funds and First Investors Life Insurance
Company.
GEORGE C. BOWEN, Vice President, Assistant Secretary and Treasurer; Age:
59
3410 South Galena Street, Denver, Colorado 80231
Senior Vice President and Treasurer of OFI; Vice President and
Treasurer of OFDI and HarbourView; Senior Vice President, Treasurer,
Assistant Secretary and a Director of the Manager; Vice President,
Secretary and Treasurer of the Transfer Agent and SFSI; an officer of
other Oppenheimer funds.
DOROTHY G. WARMACK, Vice President and Portfolio Manager; Age: 59
3410 South Galena Street, Denver, Colorado 80231
Vice President of the Manager and OFI; an officer of other Oppenheimer
funds.
CAROL E. WOLF, Vice President and Portfolio Manager; Age: 44
3410 South Galena Street, Denver, Colorado 80231
Vice President of OFI and the Manager; an officer of other Oppenheimer
funds.
ARTHUR J. ZIMMER, Vice President and Portfolio Manager; Age: 49
3410 South Galena Street, Denver, Colorado 80231
Vice President of OFI and the Manager; an officer of other Oppenheimer
funds.
ROBERT G. ZACK, Assistant Secretary; Age: 47
Two World Trade Center, New York, New York 10048
Senior Vice President and Associate General Counsel of OFI; Assistant
Secretary of the Transfer Agent and SFSI; an officer of other
Oppenheimer funds.
ROBERT J. BISHOP, Assistant Treasurer; Age: 37
3410 South Galena Street, Denver, Colorado 80231
Assistant Vice President of OFI/Mutual Fund Accounting; an officer of
other Oppenheimer funds; previously a Fund Controller for OFI, prior
to which he was an Accountant for Yale & Seffinger, P.C. (an
accounting firm) and previously an Accountant and Commissions
Supervisor for Stuart James Company, Inc., a broker-dealer.
SCOTT FARRAR, Assistant Treasurer; Age: 30
3410 South Galena Street, Denver, Colorado 80231
Assistant Vice President of OFI/Mutual Fund Accounting; an officer of
other Oppenheimer funds; previously a Fund Controller for OFI, prior
to which he was an International Mutual Fund Supervisor for Brown
Brothers Harriman Co., a bank, and previously a Senior Fund Accountant
for State Street Bank & Trust Company.
Remuneration of Directors. The officers of the Fund are affiliated with
the Manager; they and the Directors of the Fund who are affiliated with
the Manager (Ms. Macaskill and Messrs. Fossel and Swain; Mr. Swain and Ms.
Macaskill are also officers) receive no salary or fee from the Fund. The
Directors of the Fund (excluding Ms. Macaskill and Messrs. Fossel and
Swain) received the total amounts shown below (i) from the Fund, during
its fiscal year ended December 31, 1995, and (ii) from all of the Denver-
based Oppenheimer funds (including the Fund) listed in the first paragraph
of this section (and from Oppenheimer Strategic Investment Grade Bond Fund
and Oppenheimer Strategic Short-Term Income Fund, which ceased operation
following the acquisition of their assets by certain other Oppenheimer
funds), for services in the positions shown:
<TABLE>
<CAPTION>
Total Compensation
Aggregate From All
Compensation Denver-based
Name Position from Fund Oppenheimer Funds1
<S> <C> <C> <C>
Robert G. Avis Director $3,508.50 $53,000.00
William A. Baker Audit and Review $4,849.32 $73,254.66
Committee Chairman
and Director
Charles Conrad, Jr. Audit and Review $4,257.14 $64,309.17
Committee
Member and Director
Raymond J. Kalinowski Director $4,302.87 $65,000.00
C. Howard Kast Director $4,302.87 $65,000.00
Robert M. Kirchner Audit and Review $4,520.80 $68,292.00
Committee Member
and Director
Ned M. Steel Director $3,508.50 $53,000.00
______________________
1 For the 1995 calendar year.
</TABLE>
Major Shareholders. As of April 19, 1996, the only person known by the
management of the Fund to be the record or beneficial owner of 5% or more
of the outstanding shares of the Fund was A.G. Edwards & Sons, Inc.
("Edwards"), One North Jefferson Street, St. Louis, MO 63103, which was
the record owner of 3,581,210,536 shares (approximately 98.95% of the
shares outstanding). The Fund has been informed that the shares held of
record by Edwards were beneficially owned for the benefit of its brokerage
clients.
INVESTMENT MANAGEMENT SERVICES
The Manager is a wholly-owned subsidiary of OppenheimerFunds, Inc.
("OFI"), which is wholly-owned by Oppenheimer Acquisition Corporation
("OAC"), a holding company controlled by Massachusetts Mutual Life
Insurance Company. The remaining stock of OAC is also owned by: (i)
certain of OFI's directors and officers, some of whom may also serve as
officers of the Fund, and three of whom (Ms. Macaskill and Messrs. Fossel
and Swain) serve as Directors of the Fund, and (ii) A.G. Edwards, which
owns less than 5% of its equity.
The Manager supervises the investment operations of the Fund and the
composition of its portfolio and furnishes the Fund advice and
recommendations with respect to investments, investment policies, and the
purchase and sale of securities pursuant to an investment advisory
agreement (the "Agreement") with the Fund, described in "Management of the
Fund" in the Prospectus. During the Fund's fiscal years ended December
31, 1995, 1994 and 1993, the Fund paid the Manager management fees of
$12,746,352, $118,801, and $13,841,735 and respectively, pursuant to the
Agreement.
The Agreement requires the Manager, at its expense, to provide the
Fund with adequate office space, facilities and equipment and to provide
and supervise the activities of all administrative and clerical personnel
required to provide effective administration for the Fund, including the
compilation and maintenance of records with respect to its operations, the
preparation and filing of specified reports, and the composition of proxy
materials and registration statements for continuous public sale of shares
of the Fund. Expenses not expressly assumed by the Manager under the
Agreement or as Distributor of the shares of the Fund are paid by the
Fund. The Agreement lists examples of expenses paid by the Fund, the
major categories of which relate to interest, taxes, fees to unaffiliated
directors, legal, bookkeeping and audit expenses, brokerage, custodian and
transfer agent expenses, stock issuance costs, certain printing costs
(excluding the cost of printing prospectuses for sales materials),
registration fees, and non-recurring expenses, including litigation.
The Agreement provides that the Manager will reimburse the Fund for
annual expenses of the Fund (excluding brokerage commissions, taxes,
interest and extraordinary expenses such as litigation) which exceed the
most stringent limits prescribed by any state in which the Fund's shares
are offered for sale. At present, that limitation is imposed by
California and limits expenses (with specified exclusions) to 2.5% of the
first $30 million of average annual net assets, 2.0% of the next $70
million, and 1.5% of average annual net assets in excess of $100 million.
The payment of the management fee at the end of any month will be reduced
so that at no time will there be any accrued but unpaid liability under
this expense limitation. Independently of the 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 7-day yield
(computed in accordance with procedures specified pursuant to regulations
adopted under the Investment Company Act of 1940) to at least equal the
7-day yield of Centennial Money Market Trust. The Manager reserves the
right to modify or terminate the latter of these voluntary undertakings
at any time without prior notice to investors or shareholders. Prior to
December 1, 1994, the Manager voluntarily agreed to waive a portion of the
management fee otherwise payable to it by the Fund to the extent necessary
to ensure that the annual management fee of the Fund did not exceed 0.35%
of the Fund's average net assets.
The Manager assumes no responsibility under the Agreement other than
that which is imposed by law, and shall not be responsible for any action
of the Board of Directors of the Fund in following or declining to follow
any advice or recommendations of the Manager. The Manager shall not be
liable for any error of judgment or mistake of law, or for any loss
suffered by the Fund in connection with matters to which the Agreement
relates, except a loss resulting by reason of the Manager's willful
misfeasance, bad faith or gross negligence in the performance of its
duties, or its reckless disregard of its obligations and duties, under the
Agreement. The Agreement permits the Manager to act as investment adviser
for any other person, firm or corporation.
Portfolio Transactions. Portfolio decisions are based upon the
recommendations and judgment of the Manager subject to the overall
authority of the Board of Directors. As most purchases made by the Fund
are principal transactions at net prices, the Fund incurs little or no
brokerage costs. Purchases of portfolio securities from underwriters
include a commission or concession paid by the issuer to the underwriter,
and purchases from dealers include a spread between the bid and asked
price. The Fund's policy of investing in short-term debt securities with
maturities of less than one year results in high portfolio turnover.
However, since brokerage commissions, if any, are small and securities are
usually held to maturity, high turnover does not have an appreciable
adverse effect upon the net asset value or income of the Fund.
The Fund seeks to obtain prompt and reliable execution of orders at
the most favorable net price. If brokers are used for portfolio
transactions, transactions may be directed to brokers furnishing execution
and research services deemed by the Manager to be useful or valuable to
the performance of its investment advisory functions for the Fund.
Research information may be in written form or through direct contact with
individuals and includes information on particular companies and
industries as well as market, economic or institutional activity areas.
It serves to broaden the scope and supplement the research activities of
the Manager, to make available additional views for consideration and
comparisons, and to enable the Manager to obtain market information for
the valuation of securities held in the Fund's portfolio. The Fund does
not direct the handling of purchases or sales of portfolio securities,
whether on a principal or agency basis, to brokers for selling shares of
the Fund. No portfolio transactions are handled by brokers which are
affiliated with the Fund or the Manager.
PURCHASE, REDEMPTION AND PRICING OF SHARES
Determination of Net Asset Value Per Share. The net asset value per share
of the Fund's shares is determined twice each day as of 12:00 Noon and as
of the close of The New York Stock Exchange (the "Exchange") which is
normally 4:00 P.M., but may be earlier on some days, each day the Exchange
is open (a "regular business day"), (all references to time mean New York
time) by dividing the Fund's net assets (the total value of the Fund's
portfolio securities, cash and other assets less all liabilities) by the
total number of shares outstanding. The Exchange's most recent annual
holiday schedule states that it will close New Year's Day, Presidents'
Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving
Day and Christmas Day. The Exchange may also close on other days.
The Fund will seek to maintain a net asset value of $1.00 per share
for purchases and redemptions. There can be no assurance that it will do
so. The Fund operates under Rule 2a-7 under which the Fund may use the
amortized cost method of valuing its shares. The amortized cost method
values a security initially at its cost and thereafter assumes a constant
amortization of any market discount or premium, regardless of the impact
of fluctuating interest rates on the market value of the security. The
method does not take into account unrealized capital gains or losses.
The Fund's Board of Directors has established procedures intended to
stabilize the Fund's net asset value at $1.00 per share. If the Fund's
net asset value per share were to deviate from $1.00 by more than 0.5%,
Rule 2a-7 requires the Board promptly to consider what action, if any,
should be taken. If the Directors find that the extent of any such
deviation may result in material dilution or other unfair effects on
shareholders, the Board will take whatever steps it considers appropriate
to eliminate or reduce such dilution or unfair effects, including, without
limitation, selling portfolio securities prior to maturity, shortening the
average portfolio maturity, withholding or reducing dividends, reducing
the outstanding number of Fund shares without monetary consideration, or
calculating net asset value per share by using available market
quotations.
As long as it uses Rule 2a-7, the Fund must abide by certain
conditions described in the Prospectus. Some of those conditions which
relate to portfolio management are that the Fund must: (i) maintain a
dollar-weighted average portfolio maturity not in excess of 90 days; (ii)
limit its investments, including repurchase agreements, to those
instruments which are denominated in U.S. dollars, and which are rated in
one of the two highest short-term rating categories by at least two
"nationally-recognized statistical rating organizations" ("Rating
Organizations") as defined in Rule 2a-7, or by one Rating Organization if
only one Rating Organization has rated the security; an instrument that
is not rated must be of comparable quality as determined by the Manager
under guidelines approved by the Board; and (iii) not purchase any
instrument with a remaining maturity of more than 397 days. The Fund's
fundamental investment policy that the remaining maturity of an instrument
shall not exceed one year is more restrictive than the provisions of Rule
2a-7. Under Rule 2a-7, the maturity of an instrument is generally
considered to be its stated maturity (or in the case of an instrument
called for redemption, the date on which the redemption payment must be
made), with special exceptions for certain variable and floating rate
instruments. Repurchase agreements and securities loan agreements are,
in general, treated as having a maturity equal to the period scheduled
until repurchase or return, or if subject to demand, equal to the notice
period.
While the amortized cost method provides certainty in valuation,
there may be periods during which the value of an instrument, as
determined by amortized cost, is higher or lower than the price the Fund
would receive if it sold the instrument. During periods of declining
interest rates, the daily yield on shares of the Fund may tend to be lower
(and net investment income and daily dividends higher) than a like
computation made by a fund with identical investments utilizing a method
of valuation based upon market prices or estimates of market prices for
its portfolio. Thus, if the use of amortized cost by the Fund resulted
in a lower aggregate portfolio value on a particular day, a prospective
investor in the Fund would be able to obtain a somewhat higher yield than
would result from investment in a fund utilizing solely market values, and
existing investors in the Fund would receive less investment income than
if the Fund were priced at market value. Conversely, during periods of
rising interest rates, the daily yield on Fund shares will tend to be
higher and its aggregate value lower than that of a portfolio priced at
market value. A prospective investor would receive a lower yield than
from an investment in a portfolio priced at market value, while existing
investors in the Fund would receive more investment income than if the
Fund were priced at market value.
Redemptions. The Fund's Board of Directors has the right, in conformity
with applicable law, to cause the involuntary redemption of the shares
held in any account if the aggregate net asset value of such shares is
less than $500 or such lesser amount as the Board may decide. Should the
Board elect to exercise this right, it will establish the terms of any
notice of such redemption required to be provided to the shareholder under
the Investment Company Act or Maryland law, including any provision the
Board may establish to enable the shareholder to increase the amount of
the investment to avoid involuntary redemption.
Expedited Redemption Procedures. Under the Expedited Redemption Procedure
available to direct shareholders of the Fund, as discussed in the
Prospectus, the wiring of redemption proceeds may be delayed if the Fund's
Custodian bank is not open for business on a day that the Fund would
normally authorize the wire to be made, which is usually the same day for
redemptions prior to 12:00 Noon, and the Fund's next regular business day
for redemptions between 12:00 Noon and the close of the Exchange, which
is normally 4:00 P.M., but may be earlier on some days. In those
circumstances, the wire will not be transmitted until the next bank
business day on which the Fund is open for business and no dividends will
be paid on the proceeds of redeemed shares waiting transfer by wire.
SERVICE PLAN
The Fund has adopted a service plan (the "Plan") under Rule 12b-1 of
the Investment Company Act pursuant to which the Fund is permitted to
reimburse the Distributor for a portion of its costs incurred in
connection with the servicing of the Fund's shares, as described in the
Prospectus for costs incurred in rendering assistance in connection with
the distribution of Fund shares. Under the Plan, the Fund's Distributor
is authorized to reimburse certain securities dealers and other financial
institutions and organizations ("Recipients") in connection with the
personal service and the maintenance of shareholder accounts that hold
Fund shares. Payment is made monthly or quarterly (i) at the annual rate
of 0.20 of 1.0% (or such lesser amount as the disinterested Directors may
determine) of the average net asset value of the Fund's shares owned
beneficially or of record during the month or quarter by the Recipient or
its customers, or (ii) in an amount equal to the Recipient's total cost
during the month of rendering personal service (including reasonable
allocations of overhead), whichever is less. No payment will be made to
a Recipient for any month during which the average net asset value of Fund
shares held by the Recipient and its customers was less than $3 million.
Although no payments are retained by the Distributor or the Manager,
Recipients which are affiliates of the Manager may receive payments.
Payments by the Fund under the Plan for the fiscal year ended December 31,
1995 totaled $6,678,853.
Under the Plan, a Recipient must certify monthly or quarterly that
its expenses for providing such services do not exceed its administrative
and sales-related costs. A Recipient is required to reimburse the Fund
if the aggregate payments it receives during the year exceed its costs as
so certified.
The Plan may continue in effect for a period of more than one year
from the date of its execution only so long as continuance is approved at
least annually by the Board of Directors of the Fund, including a majority
of the disinterested Directors, by a vote cast in person at a meeting
called for the purpose of voting on that Agreement. The Plan
automatically terminates in the event of its assignment and also
terminates if (i) the Fund terminates the Plan, or (ii) a majority of the
disinterested Directors or the holders of a majority of the outstanding
voting securities of the Fund vote to terminate the Agreement.
The Plan provides that, as long as the Plan remains in effect, the
selection and nomination of Directors of the Fund who are not "interested
persons" of the Fund shall be committed to the discretion of the Directors
then in office who are not "interested persons" of the Fund. However,
others may participate in such selection and nomination provided that the
final decision is approved by a majority of the incumbent Independent
Directors. Finally, the Plan cannot be amended without shareholder
approval as set forth above to increase materially the amount of payments
to be made and all material amendments are required to be approved by the
vote of the Board of Directors of the Fund, including a majority of the
disinterested Directors, cast in person at a meeting called for that
purpose.
ADDITIONAL INFORMATION
Tax Status of the Fund's Dividends and Distributions. The Federal tax
treatment of the Fund's dividends and distributions to shareholders is
explained in the Prospectus under the caption "Dividends, Distributions
and Taxes." Under the Internal Revenue Code, the Fund must distribute by
December 31 each year 98% of its taxable investment income earned from
January 1 through December 31 of that year, and 98% of its capital gains
realized from the prior November 1 through October 31 of that year, or
else the Fund must pay an excise tax on the amounts not distributed.
While it is presently anticipated that the Fund's distributions will meet
those requirements, the Fund's Board and Manager might determine in a
particular year that it might be in the best interest of the Fund's
shareholders not to distribute income or capital gains at the mandated
levels and to pay the excise tax on the undistributed amounts, which would
reduce the amount available for distribution to shareholders.
Dividend Reinvestment in Another Fund. Direct shareholders of the Fund
may elect to reinvest all dividends and/or distributions in Class A shares
of any of the other "Eligible Funds" listed below at net asset value
without sales charge. To elect this option, a shareholder must notify the
Transfer Agent in writing, and either must have an existing account in the
fund selected for reinvestment or must obtain a prospectus for that fund
and an application from the Transfer Agent to establish an account. The
investment will be made at the net asset value per share next determined
on the payable date of the dividend or distribution.
Eligible Funds:
Oppenheimer Tax-Free Bond Fund
Oppenheimer New York Tax-Exempt Fund
Oppenheimer California Tax-Exempt Fund
Oppenheimer Intermediate Tax-Exempt Fund
Oppenheimer Insured Tax-Exempt Fund
Oppenheimer Main Street California Tax-Exempt Fund
Oppenheimer Florida Tax-Exempt Fund
Oppenheimer Pennsylvania Tax-Exempt Fund
Oppenheimer New Jersey Tax-Exempt Fund
Oppenheimer Fund
Oppenheimer Discovery Fund
Oppenheimer Target Fund
Oppenheimer Growth Fund
Oppenheimer Equity Income Fund
Oppenheimer Value Stock Fund
Oppenheimer Asset Allocation Fund
Oppenheimer Total Return Fund, Inc.
Oppenheimer Main Street Income & Growth
Fund
Oppenheimer Disciplined Allocation Fund
Oppenheimer Disciplined Value Fund
Oppenheimer LifeSpan Balanced Fund
Oppenheimer LifeSpan Growth Fund
Oppenheimer LifeSpan Income Fund
Oppenheimer High Yield Fund
Oppenheimer Champion Income Fund
Oppenheimer Bond Fund
Oppenheimer U.S. Government Trust
Oppenheimer Limited-Term Government Fund
Oppenheimer Global Fund
Oppenheimer Global Emerging Growth Fund
Oppenheimer Global Growth & Income Fund
Oppenheimer Gold & Special Minerals Fund
Oppenheimer Strategic Income Fund
Oppenheimer Strategic Income & Growth Fund
Oppenheimer International Bond Fund
Oppenheimer Enterprise Fund
Oppenheimer International Growth Fund
Oppenheimer Quest Opportunity Value Fund
Oppenheimer Quest Growth & Income Value Fund
Oppenheimer Quest Small Cap Value Fund
Oppenheimer Quest Officers Value Fund
Oppenheimer Quest Global Value Fund, Inc.
Oppenheimer Quest Value Fund, Inc.
Bond Fund Series - Oppenheimer Bond Fund for Growth
Rochester Portfolio Series - Limited Term
New York Municipal Fund*
Rochester Fund Municipals*
and the following "Money Market Funds":
Oppenheimer Money Market Fund, Inc.
Oppenheimer Cash Reserves
Centennial Money Market Trust
Centennial Tax Exempt Trust
Centennial Government Trust
Centennial New York Tax Exempt Trust
Centennial California Tax Exempt Trust
Centennial America Fund, L.P.
Daily Cash Accumulation Fund, Inc.
* Shares of the Fund are not presently exchangeable for shares of
this Fund.
The Custodian and the Transfer Agent. The Custodian's responsibilities
include safeguarding and controlling the Fund's portfolio securities and
handling the delivery of portfolio securities to and from the Fund. The
Manager has represented to the Fund that its banking relationships between
the Manager and the Custodian have been and will continue to be unrelated
to and unaffected by the relationship between the Fund and the Custodian.
It will be the practice of the Fund to deal with the Custodian in a manner
uninfluenced by any banking relationship the Custodian may have with the
Manager or its affiliates.
Shareholder Services, Inc. as the Transfer Agent, is responsible for
maintaining the Fund's shareholder registry and shareholder accounting
records, and for shareholder servicing and administrative functions.
General Distributor's Agreement. Under the General Distributor's
Agreement between the Fund and the Distributor, the Distributor is the
Fund's principal underwriter in the continuous public offering of the
Fund's shares but is not obligated to sell a specific number of shares.
Expenses normally attributable to sales (other than those paid under the
Service Plan), including advertising and the cost of printing and mailing
prospectuses (other than those furnished to existing shareholders), are
borne by the Distributor.
Independent Auditors. The independent auditors of the Fund audit the
Fund's financial statements and perform other related audit services.
They also act as auditors for the Manager, OppenheimerFunds, Inc., the
Manager's immediate parent, as well as for certain other funds advised by
the Manager and OppenheimerFunds, Inc.
<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, 1995, the related statement of operations for the
year then ended, the statements of changes in net assets for the years
ended December 31, 1995 and 1994, and the financial highlights for the
period January 1, 1986 to December 31, 1995. 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 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, 1995 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, 1995, 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.
/s/ Deloitte & Touche LLP
- -----------------------------
DELOITTE & TOUCHE LLP
Denver, Colorado
January 22, 1996
<PAGE>
STATEMENT OF INVESTMENTS December 31, 1995
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
BANKERS' ACCEPTANCES -- 0.5% Amount See Note 1
--------- ----------
<S> <C> <C>
CoreStates Bank N.A. Corp.:
5.63%, 2/15/96......................................................... $5,000,000 $ 4,964,813
5.67%-5.68%, 1/26/96................................................... 12,265,528 12,217,182
-------------
Total Bankers' Acceptances (Cost $17,1895)............................ 17,1895
-------------
CERTIFICATES OF DEPOSIT -- 3.4%
DOMESTIC CERTIFICATES OF DEPOSIT -- 1.4%
BANKS -- 1.4%
LaSalle National Bank:
5.45%, 6/19/96......................................................... 5,000,000 5,000,000
5.69%, 1/29/96......................................................... 15,000,000 15,000,000
5.74%, 2/15/96......................................................... 10,000,000 10,000,000
5.76%, 1/5/96.......................................................... 10,000,000 10,000,000
5.80%, 1/25/96......................................................... 10,000,000 10,000,000
-------------
50,000,000
-------------
YANKEE CERTIFICATES OF DEPOSIT -- 2.0%
BANKS -- 2.0%
Rabobank Nederland, 5.50%, 6/13/96....................................... 5,000,000 5,000,000
-------------
Sanwa Bank Ltd., 5.75%, 1/11/96.......................................... 5,000,000 4,999,870
-------------
Societe Generale:
5.50%, 6/14/96......................................................... 25,000,000 25,000,000
5.75%, 4/23/96......................................................... 10,000,000 10,000,000
5.86%, 1/22/96......................................................... 10,000,000 10,000,000
-------------
Swiss Bank Corp., 5.50%, 6/10/96......................................... 15,000,000 15,000,000
-------------
69,999,870
-------------
Total Certificates of Deposit (Cost $119,999,870)........................ 119,999,870
-------------
DIRECT BANK OBLIGATIONS -- 13.8%
Abbey National North America Corp.:
5.23%, 6/27/96......................................................... 60,000,000 58,412,833
5.63%, 1/12/96......................................................... 10,000,000 9,982,797
-------------
ABN Amro Bank Canada, 5.36%, 6/10/96..................................... 10,000,000 9,760,289
-------------
ABN Amro North America Finance, Inc.:
5.45%, 1/12/96......................................................... 22,000,000 263,364
5.47%, 1/5/96.......................................................... 15,000,000 14,990,883
5.55%, 4/29/96......................................................... 13,000,000 12,761,504
-------------
Barclays Bank Canada, 5.65%, 1/10/96..................................... 10,000,000 9,985,875
-------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
DIRECT BANK OBLIGATIONS (CONTINUED) Amount See Note 1
--------- ----------
<S> <C> <C>
Chase Manhattan Bank, 5.45%, 5/17/96..................................... $17,000,000 $ 16,6544
-------------
Colorado National Bank of Denver, 5.918%, 4/17/96(1)..................... 10,000,000 9,999,408
-------------
Dresdner U.S. Finance, Inc., 5.23%, 6/25/96.............................. 10,000,000 9,738,933
-------------
FCC National Bank:
5.11%, 2/20/96(1)...................................................... 10,000,000 9,995,015
5.26%, 1/11/96(1)...................................................... 10,000,000 10,000,000
5.32%, 3/12/96(1)...................................................... 10,000,000 10,000,216
5.77%, 2/16/96......................................................... 10,000,000 9,998,995
-------------
First Bank, N.A. Minneapolis, 5.90%, 1/17/96(1).......................... 10,000,000 10,000,000
-------------
First National Bank of Boston:
5.53%, 5/28/96......................................................... 10,000,000 10,000,000
5.53%, 9/16/96......................................................... 5,000,000 5,000,000
5.60%, 3/11/96......................................................... 6,000,000 5,934,667
5.63%, 11/13/96(1)..................................................... 10,000,000 9,996,468
5.65%, 8/28/96......................................................... 10,000,000 10,000,000
5.68%, 1/30/96......................................................... 8,000,000 7,963,396
5.75%, 5/31/96(1)...................................................... 10,000,000 10,000,000
5.77%, 1/16/96......................................................... 10,000,000 10,000,000
5.77%, 6/7/96(1)....................................................... 10,000,000 10,000,000
5.78%, 1/4/96.......................................................... 10,000,000 10,000,000
5.80%, 4/9/96(1)....................................................... 10,000,000 10,000,610
5.85%, 4/18/96(1)...................................................... 10,000,000 10,000,000
5.88%, 10/30/96........................................................ 10,000,000 10,000,000
-------------
Huntington National Bank:
5.59%, 8/29/96(1)...................................................... 10,000,000 9,996,013
5.87%, 11/13/96(1)..................................................... 10,000,000 10,000,000
6.15%, 3/4/96(1)....................................................... 20,000,000 20,009,255
-------------
National Westminster Bank of Canada:
5.18%, 7/8/96.......................................................... 7,000,000 6,801,550
5.65%, 1/26/96......................................................... 5,000,000 4,980,382
5.70%, 2/2/96.......................................................... 10,000,000 9,949,333
-------------
NationsBank of Texas:
5.50%, 6/28/96......................................................... 10,000,000 10,000,000
5.76%, 4/9/96.......................................................... 10,000,000 10,001,106
-------------
3
</TABLE>
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
DIRECT BANK OBLIGATIONS (CONTINUED) Amount See Note 1
--------- ----------
<S> <C> <C>
Shawmut Bank of Connecticut, N.A.,
5.68%, 6/24/96(1)...................................................... $20,000,000 $ 19,999,140
5.75%, 6/17/96(1)...................................................... 15,000,000 15,000,000
5.75%, 6/24/96(1)...................................................... 10,000,000 10,000,000
5.895%, 5/10/96(1)..................................................... 10,000,000 10,000,000
7.03%, 2/23/96......................................................... 5,000,000 5,007,386
-------------
Total Direct Bank Obligations (Cost $484,881,362)........................ 484,881,362
-------------
LETTERS OF CREDIT -- 2.5%
Bank One, Cleveland, guaranteeing commercial paper of: Capital One
Funding Corp., Series 1995F, 5.83%, 1/4/96(1).......................... 11,000,000 11,000,000
-------------
Barclays Bank PLC, guaranteeing commercial paper of:
Banco Bradesco S.A.-Grand Cayman Branch, 5.60%, 6/6/96................... 8,000,000 7,810,205
Banco Real S.A.-Grand Cayman Branch, 5.47%, 4/25/96...................... 15,000,000 14,735,979
Petroleo Brasileiro S.A.-Petrobras, 5.44%, 5/29/96....................... 10,000,000 9,771,533
-------------
Credit Suisse, guaranteeing commercial paper of:
COSCO (Cayman) Co. Ltd., 5.44%, 6/10/96................................ 10,000,000 9,758,500
COSCO (Cayman) Co. Ltd., 5.49%, 4/5/96................................. 5,000,000 4,926,375
COSCO (Cayman) Co. Ltd., 5.59%, 2/21/96................................ 10,000,000 9,919,675
COSCO (Cayman) Co. Ltd., 5.67%, 2/29/96................................ 5,550,000 5,498,427
Queensland Alumina Limited, 5.71%, 1/18/96............................. 10,000,000 9,973,036
Queensland Alumina Limited, 5.67%, 2/16/96............................. 5,000,000 4,963,775
-------------
Total Letters of Credit (Cost $88,357,505)............................... 88,357,505
-------------
SHORT-TERM NOTES -- 78.5%
BANKS -- 2.4%
Bank America Corp., 5.26%, 6/26/96....................................... 5,000,000 4,870,692
-------------
Barnett Banks, Inc., 6.10%, 1/5/96....................................... 20,000,000 19,986,444
-------------
Chemical Banking Corp.:
5.22%, 6/28/96......................................................... 20,000,000 19,467,972
5.62%-5.70%, 1/22/96................................................... 10,000,000 9,967,217
5.70%, 2/29/96......................................................... 10,000,000 9,906,583
CoreStates Capital Corp.:
5.64%, 1/22/96......................................................... 10,000,000 9,967,100
5.84%, 8/13/96(1)...................................................... 10,000,000 10,000,000
-------------
84,166,008
-------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
SHORT-TERM NOTES (CONTINUED) Amount See Note 1
--------- ----------
<S> <C> <C>
BEVERAGES -- 2.3%
Coca-Cola Enterprises, Inc.:
5.65%, 3/8/96.......................................................... $20,000,000 $ 19,789,415
5.67%, 2/21/96......................................................... 20,000,000 19,839,350
5.67%-5.68%, 2/20/96................................................... 20,000,000 19,842,222
5.68%, 2/26/96......................................................... 10,000,000 9,911,644
5.71%, 1/29/96......................................................... 10,000,000 9,955,589
-------------
79,338,220
-------------
BROKER/DEALERS -- 10.4%
CS First Boston, Inc.:
5.65%, 1/19/96......................................................... 25,000,000 24,929,375
5.68%, 2/15/96......................................................... 10,000,000 9,929,000
5.70%, 1/26/96......................................................... 10,000,000 9,960,417
-------------
Dean Witter, Discover & Co.:
5.69%, 1/18/96......................................................... 10,000,000 9,973,131
6%, 1/4/96............................................................. 50,000,000 49,975,000
-------------
Lehman Brothers Holdings, Inc., 6.25%, 1/2/96............................ 30,000,000 29,994,792
-------------
Merrill Lynch & Co., Inc.:
5.60%, 3/8/96.......................................................... 15,000,000 14,843,667
5.63%, 2/7/96.......................................................... 10,000,000 9,942,136
5.63%, 2/8/96.......................................................... 10,000,000 9,940,572
5.68%-5.70%, 2/29/96................................................... 10,000,000 9,906,911
5.70%, 9/19/96(1)...................................................... 15,000,000 14,997,852
5.70%-5.72%, 1/31/96................................................... 35,000,000 34,833,500
5.75%, 10/24/96(1)..................................................... 10,000,000 10,000,000
5.973%, 11/1/96(1)..................................................... 10,000,000 10,000,000
-------------
Morgan Stanley Group, Inc.:
5.32%, 6/24/96......................................................... 10,000,000 9,741,389
5.53%, 9/30/96(1)...................................................... 83,700,000 83,700,000
5.75%, 1/29/96......................................................... 24,000,000 23,892,667
-------------
366,560,409
-------------
COMMERCIAL FINANCE -- 11.2%
CIT Group Holdings, Inc.:
5.70%, 3/1/96.......................................................... 10,000,000 9,905,000
5.95%, 1/12/96(1)...................................................... 10,000,000 9,999,910
5.95%, 2/5/96(1)....................................................... 20,000,000 20,006,465
6.027%, 1/10/96(1)..................................................... 38,500,000 38,500,000
-------------
5
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
SHORT-TERM NOTES (CONTINUED) Amount See Note 1
--------- ----------
<S> <C> <C>
Commercial Finance (Continued)
FINOVA Capital Corp.
5.49%, 8/9/96.......................................................... $10,000,000 $ 9,662,668
5.51%, 3/15/96......................................................... 10,000,000 9,881,806
5.58%, 3/6/96.......................................................... 10,000,000 9,895,097
5.60%, 2/12/96......................................................... 10,000,000 9,931,167
5.64%, 3/11/96......................................................... 10,000,000 9,888,778
5.72%-5.97%, 1/31/96................................................... 25,000,000 24,876,917
5.78%, 1/24/96......................................................... 20,000,000 19,926,144
5.80%, 2/27/96......................................................... 15,000,000 14,862,250
5.85%, 1/18/96......................................................... 6,000,000 5,983,425
5.85%-5.90%, 1/30/96................................................... 15,000,000 14,928,708
5.87%, 4/26/96(1)...................................................... 10,000,000 10,000,000
5.90%, 1/29/96......................................................... 5,000,000 4,977,056
5.90%, 2/5/96.......................................................... 5,000,000 4,971,319
5.97%, 1/19/96......................................................... 5,000,000 4,985,075
5.97%, 1/4/96.......................................................... 4,700,000 4,697,662
-------------
Fleet Mortgage Group, Inc., 5.58%, 4/4/96................................ 5,000,000 4,927,150
-------------
Heller Financial, Inc.:
5.52%, 3/12/96......................................................... 25,000,000 24,727,833
5.70%, 4/15/96......................................................... 5,000,000 4,916,875
5.75%, 10/7/96(1)...................................................... 8,000,000 8,000,000
5.75%, 4/5/96.......................................................... 10,000,000 9,848,264
5.78%, 1/31/96......................................................... 10,000,000 9,951,833
5.78%, 2/12/96......................................................... 17,000,000 16,885,363
5.78%, 2/28/96......................................................... 10,000,000 9,906,878
5.78%, 3/1/96.......................................................... 10,000,000 9,903,667
5.78%, 3/15/96......................................................... 5,000,000 4,940,594
5.78%, 3/4/96.......................................................... 8,000,000 7,919,080
5.80%, 4/29/96......................................................... 5,000,000 4,904,139
5.957%, 8/28/96(1)..................................................... 20,000,000 20,000,000
6.07%, 10/1/96(1)...................................................... 10,000,000 10,000,000
6.108%, 6/10/96(1)..................................................... 10,000,000 10,007,063
-------------
394,718,186
-------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
SHORT-TERM NOTES (CONTINUED) Amount See Note 1
--------- ----------
<S> <C> <C>
Conglomerates -- 3.3%
Mitsubishi International Corp.:
5.58%, 3/15/96......................................................... $6,550,000 $ 6,474,872
5.64%, 1/22/96......................................................... 6,475,000 6,453,697
5.67%, 3/29/96......................................................... 24,800,000 24,455,969
5.72%, 1/16/96......................................................... 10,000,000 9,976,167
5.75%, 1/9/96.......................................................... 2,000,000 97,444
5.75%, 2/1/96.......................................................... 2,000,000 90,097
5.76%, 1/23/96......................................................... 23,000,000 22,919,040
5.76%, 1/24/96......................................................... 10,000,000 9,963,168
5.76%, 1/25/96......................................................... 5,000,000 4,980,783
5.78%, 1/31/96......................................................... 5,000,000 4,975,917
-------------
Pacific Dunlop Holdings, Inc., guaranteed by Pacific Dunlop Ltd.:
5.70%, 2/14/96......................................................... 18,000,000 17,874,600
5.73%, 1/18/96......................................................... 5,000,000 4,986,471
-------------
117,048,225
-------------
CONSUMER FINANCE -- 3.9%
American Express Credit Corp.:
5.22%, 7/8/96.......................................................... 12,000,000 11,662,950
5.40%, 6/10/96......................................................... 5,000,000 4,879,250
-------------
Beneficial Corp., 5.26%, 2/1/96(1)....................................... 5,000,000 5,000,000
-------------
Island Finance Puerto Rico, Inc.:
5.45%, 8/2/96.......................................................... 5,000,000 4,838,014
5.65%, 3/4/96.......................................................... 15,000,000 14,851,688
5.67%, 2/22/96......................................................... 5,000,000 4,958,111
5.67%-5.70%, 2/9/96.................................................... 29,600,000 29,417,545
5.72%, 2/1/96.......................................................... 8,100,000 8,060,103
5.75%, 1/26/96......................................................... 15,100,000 15,039,705
-------------
Sears Roebuck Acceptance Corp.:
5.69%, 2/21/96......................................................... 10,000,000 9,919,392
5.70%, 1/19/96......................................................... 20,000,000 19,943,000
5.73%, 1/8/96.......................................................... 10,000,000 9,988,858
-------------
138,558,616
-------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
SHORT-TERM NOTES (CONTINUED) Amount See Note 1
--------- ----------
<S> <C> <C>
DIVERSIFIED FINANCIAL -- 9.1%
Ford Motor Credit Co.:
5.46%, 5/10/96......................................................... $10,000,000 $ 9,805,000
5.67%, 2/21/96......................................................... 25,000,000 24,799,188
5.68%, 1/12/96......................................................... 10,000,000 9,982,644
-------------
General Electric Capital Corp.:
5.20%, 8/1/96(1)....................................................... 10,000,000 9,991,374
5.43%, 6/10/96......................................................... 30,000,000 29,280,867
5.43%, 6/7/96.......................................................... 20,000,000 19,529,511
5.46%, 5/7/96.......................................................... 25,000,000 24,516,694
5.48%, 4/3/96.......................................................... 10,000,000 9,855,592
5.50%, 4/23/96......................................................... 15,000,000 14,741,042
5.67%, 2/13/96......................................................... 25,000,000 24,830,688
6%, 1/2/96............................................................. 35,000,000 34,994,167
-------------
General Motors Acceptance Corp.:
5.47%, 8/19/96(1)...................................................... 15,000,000 14,999,596
5.49%, 4/2/96.......................................................... 10,000,000 9,857,656
5.50%, 2/16/96......................................................... 20,000,000 19,859,444
5.50%, 5/13/96(1)...................................................... 10,000,000 10,000,000
5.50%, 6/7/96(1)....................................................... 7,600,000 7,602,350
5.75%, 2/16/96......................................................... 20,000,000 19,853,056
5.75%, 2/9/96.......................................................... 5,000,000 4,968,854
6.05%, 1/2/96.......................................................... 15,000,000 14,997,479
8.75%, 8/1/96.......................................................... 5,550,000 5,642,283
-------------
320,107,485
-------------
ELECTRIC UTILITIES -- 1.3%
Central & Southwest Corp.:
5.66%, 2/22/96......................................................... 10,000,000 9,917,233
5.66%, 2/27/96......................................................... 5,000,000 4,954,083
5.66%, 2/28/96......................................................... 20,000,000 19,815,528
5.75%, 2/13/96......................................................... 9,400,000 9,335,440
-------------
44,022,284
-------------
ELECTRICAL EQUIPMENT -- 0.4%
Xerox Corp.:
5.62%, 3/11/96......................................................... 5,000,000 4,945,361
5.72%, 1/11/96......................................................... 10,000,000 9,984,111
-------------
14,929,472
-------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
SHORT-TERM NOTES (CONTINUED) Amount See Note 1
--------- ----------
<S> <C> <C>
ELECTRONICS -- 1.3%
Avnet, Inc., 5.70%, 2/5/96............................................... $10,000,000 $ 9,944,583
------------
Mitsubishi Electric Finance America, Inc.:
5.32%, 6/19/96......................................................... 5,000,000 4,874,389
5.61%, 2/26/96......................................................... 10,000,000 9,910,867
5.78%, 1/25/96......................................................... 10,000,000 9,961,467
5.81%, 1/19/96......................................................... 10,000,000 9,970,950
-------------
44,662,256
-------------
ENVIRONMENTAL -- 1.8%
WMX Technologies, Inc.:
5.21%, 7/11/96......................................................... 10,000,000 9,715,733
5.22%, 7/9/96.......................................................... 15,000,000 14,578,042
5.32%, 9/10/96......................................................... 10,000,000 9,626,122
5.35%, 7/18/96......................................................... 10,000,000 9,704,264
5.36%, 7/16/96......................................................... 5,000,000 4,854,439
5.44%, 6/4/96.......................................................... 5,000,000 4,884,826
5.45%, 3/8/96.......................................................... 10,000,000 9,898,569
-------------
63,2695
-------------
HEALTHCARE/SUPPLIES & SERVICES -- 3.2%
A.H. Robins Co., Inc., guaranteed by American Home Products:
5.67%, 3/7/96.......................................................... 6,275,000 6,209,771
5.68%, 3/4/96.......................................................... 15,000,000 14,850,900
5.71%, 1/30/96......................................................... 20,000,000 19,908,006
5.71%, 2/7/96.......................................................... 5,000,000 4,970,657
-------------
American Home Food Products, Inc., guaranteed by American Food Products:
5.72%, 1/30/96......................................................... 27,500,000 27,373,286
5.72%, 1/30/96......................................................... 10,000,000 9,953,922
-------------
American Home Products, 5.71%, 2/6/96.................................... 10,000,000 9,942,900
-------------
Sandoz Corp., 5.70%, 2/13/96............................................. 10,000,000 9,9317
-------------
Sherwood Medical Co., guaranteed by American Home Products, 5.70%,
2/26/96................................................................ 9,500,000 9,415,767
-------------
112,557,126
-------------
INSURANCE -- 5.8%
Allstate Life Insurance Co., 5.973%, 2/1/96(1)(3)(4)..................... 10,000,000 10,000,000
-------------
General American Life Insurance Co., 6%, 1/6/96(1)(3).................... 30,000,000 30,000,000
-------------
Pacific Mutual Life Insurance Co., 5.995%, 2/17/96(1)(2)(3)(4)........... 50,000,000 50,000,000
-------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
SHORT-TERM NOTES (CONTINUED) Amount See Note 1
--------- ----------
<S> <C> <C>
INSURANCE (CONTINUED)
Protective Life Insurance Co., 6.123%, 2/17/96(1)(2)(3)(4)............... $20,000,000 $ 20,000,000
-------------
TransAmerica Life Insurance & Annuity Co.:
5.973%, 10/15/96(1)(3)................................................. 25,000,000 25,000,000
5.973%, 9/27/96(1)(3).................................................. 25,000,000 25,000,000
5.973%, 9/30/96(1)(3).................................................. 20,000,000 20,000,000
5.995%, 8/7/96(1)(3)................................................... 25,000,000 25,000,000
-------------
205,000,000
-------------
LEASING & FACTORING -- 1.4%
International Lease Finance Corp., 5.70%, 1/19/96........................ 20,000,000 19,943,000
-------------
Sanwa Business Credit Corp.:
5.28%, 4/11/96(1)(3)................................................... 10,000,000 10,000,000
5.73%, 2/9/96(1)(3).................................................... 10,000,000 9,999,622
-------------
The Hertz Corp., 5.32%, 5/31/96.......................................... 10,000,000 9,776,856
-------------
49,719,478
-------------
MANUFACTURING -- 3.2%
Hanson Finance (UK) PLC, guaranteed by Hanson PLC:
5.65%, 1/18/96......................................................... 10,000,000 9,973,319
5.67%-5.70%, 2/9/96.................................................... 9,000,000 8,944,425
5.68%-5.70%, 1/26/96................................................... 30,000,000 29,881,389
5.70%, 1/12/96......................................................... 10,000,000 9,982,583
5.70%, 2/5/96.......................................................... 15,000,000 14,916,875
5.71%, 1/19/96......................................................... 20,000,000 19,942,900
5.71%, 1/24/96......................................................... 10,000,000 9,963,519
5.71%-5.77%, 1/16/96................................................... 10,000,000 9,975,958
-------------
113,580,968
-------------
METALS/MINING -- 0.3%
English China Clays PLC:
5.66%, 2/14/96......................................................... 7,267,000 7,216,729
5.66%, 2/21/96......................................................... 5,000,000 4,959,873
-------------
12,176,602
-------------
NONDURABLE HOUSEHOLD GOODS -- 0.6%
Colgate-Palmolive Co.:
5.20%, 9/23/96......................................................... 10,000,000 9,615,778
5.37%, 6/24/96......................................................... 10,000,000 9,738,715
-------------
19,354,493
-------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
SHORT-TERM NOTES (CONTINUED) Amount See Note 1
--------- ----------
<S> <C> <C>
SAVINGS & LOANS -- 4.8%
Great Western Bank FSB:
5.72%, 2/9/96.......................................................... $10,000,000 $ 9,938,033
5.72%-5.74%, 1/22/96................................................... 35,000,000 34,882,983
5.72%-5.75%, 1/29/96................................................... 16,000,000 15,928,584
5.73%-5.74%, 1/16/96................................................... 35,000,000 34,916,333
5.74%, 1/25/96......................................................... 10,000,000 9,961,733
5.74%, 1/26/96......................................................... 25,000,000 24,900,347
-------------
Household Bank FSB:
5.77%, 1/24/96......................................................... 15,000,000 15,000,000
5.89%, 9/27/96(1)...................................................... 25,000,000 24,993,679
-------------
170,521,692
-------------
SPECIAL PURPOSE FINANCIAL -- 7.6%
Cooperative Association of Tractor Dealers, Inc.
5.44%, 5/10/96......................................................... 5,190,000 5,085,796
5.44%, 6/12/96......................................................... 4,600,000 4,487,530
5.67%, 3/8/96.......................................................... 4,000,000 3,957,790
5.69%, 2/23/96......................................................... 4,000,000 3,966,492
5.70%, 4/5/96.......................................................... 5,100,000 5,023,288
5.73%, 1/22/96......................................................... 6,300,000 6,278,942
5.75%, 1/26/96......................................................... 5,000,000 4,980,035
5.75%-5.77%, 1/12/96................................................... 5,000,000 4,991,215
-------------
CXC, Inc.:
5.60%, 2/26/96......................................................... 25,000,000 24,779,189
5.70%, 1/26/96......................................................... 10,000,000 9,960,417
-------------
Falcon Asset Securitization Corp.:
5.55%, 4/1/96.......................................................... 5,000,000 4,929,854
5.72%, 2/6/96.......................................................... 15,125,000 15,038,485
-------------
First Deposit Master Trust 1993-3, 5.71%, 2/9/96......................... 15,000,000 14,907,213
-------------
Madison Funding Corp.:
5.58%, 3/6/96.......................................................... 5,150,000 5,095,603
5.70%, 1/22/96......................................................... 25,000,000 24,911,333
5.70%, 1/25/96......................................................... 7,000,000 6,972,327
5.77%-5.95%, 1/10/96................................................... 35,775,000 35,721,785
6%, 1/8/96............................................................. 10,000,000 9,988,333
-------------
New Center Asset Trust, 5.67%, 2/14/96................................... 10,000,000 9,930,700
-------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
SHORT-TERM NOTES (CONTINUED) Amount See Note 1
--------- ----------
<S> <C> <C>
SPECIAL PURPOSE FINANCIAL (CONTINUED)
SMM Trust:
1995-B, 6.027%, 8/2/96(1)(3)(4)........................................ $10,000,000 $ 10,000,000
1995-I, 5.77%, 5/29/96(1)(3)(4)........................................ 5,000,000 4,999,408
1995-N, 5.92%, 11/15/96(1)(3)(4)....................................... 15,000,000 15,000,000
-------------
STEERS 1994:
Series A-02, 5.925%, 11/18/96(1)(3)(4)................................. 10,000,000 10,000,000
Series A-11, 5.82%, 5/20/96(1)(3)(4)................................... 10,000,000 10,000,000
-------------
WCP Funding, 5.71%, 1/19/96.............................................. 15,000,000 14,957,175
-------------
265,962,910
-------------
SPECIALTY RETAILING -- 0.1%
St. Michael Finance, Ltd., guaranteed by Marks & Spencer PLC, 5.62%,
1/12/96................................................................ 4,134,000 4,126,901
-------------
TELECOMMUNICATIONS-TECHNOLOGY -- 4.1%
Electronic Data Systems Corp., 5.71%, 1/22/96............................ 15,000,000 14,950,038
-------------
NYNEX Corp.:
5.47%, 6/3/96.......................................................... 7,500,000 7,324,504
5.66%, 3/1/96.......................................................... 5,000,000 4,952,833
5.69%-5.70%, 2/16/96................................................... 10,000,000 9,927,167
5.70%-5.73%, 2/12/96................................................... 17,000,000 16,886,705
5.71%, 2/14/96......................................................... 14,500,000 14,398,806
5.72%, 2/20/96......................................................... 14,000,000 13,888,778
5.74%, 1/22/96......................................................... 20,000,000 19,933,150
5.74%, 1/24/96......................................................... 10,000,000 9,963,328
5.74%, 1/31/96......................................................... 20,000,000 19,904,333
5.76%, 2/9/96.......................................................... 13,000,000 12,919,021
-------------
145,048,663
-------------
Total Short-Term Notes (Cost $2,765,4289)............................. 2,765,4289
-------------
U.S. GOVERNMENT OBLIGATIONS -- 0.0%
Small Business Administration, 10.375%, 1/2/96 (Cost $358,527)(1)........ 331,226 358,527
-------------
FOREIGN GOVERNMENT OBLIGATIONS -- 1.9%
Bayerische Landesbank Girozentrale supported by Federal Republic of
Germany, 5.95%, 7/22/96................................................ 10,000,000 9,997,343
-------------
New South Wales Treasury Corp., guaranteed by the State of New South
Wales, Commonwealth of Australia:
5.45%, 1/11/96......................................................... 12,000,000 181,833
5.45%, 1/8/96.......................................................... 10,000,000 9,989,403
-------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED) Amount See Note 1
--------- ----------
<S> <C> <C>
Swedish Export Credit Corp., supported by Kingdom of Sweden:
5.49%, 4/9/96.......................................................... $10,000,000 $ 9,848,750
5.60%-5.68%, 1/16/96................................................... 15,000,000 14,964,500
-------------
Westdeutsche Landesbank Girozentrale supported by Federal Republic of
Germany, guaranteeing commercial paper of Unibanco-Unaio de Brancos
Brasileiros S.A.-Grand Cayman:
5.58%, 4/4/96.......................................................... 5,000,000 4,927,150
5.66%, 4/15/96......................................................... 6,000,000 5,818,880
-------------
Total Foreign Government Obligations (Cost $67,527,859).................. 67,527,859
-------------
Total Investments, at Value.............................................. 100.6% 3,543,729,107
----- --------------
Liabilities in Excess of Other Assets.................................... (0.6) (20,004,006)
------ ---------------
Net Assets............................................................... 100.0% $3,523,725,101
------ ---------------
------ ---------------
</TABLE>
Short-term notes, bankers' acceptances, direct bank obligations and
letters of credit 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 December 31, 1995. 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. Put obligation redeemable at full face value on the date reported.
3. 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 $274,999,030, or 7.8% of the
Fund's net assets. Pursuant to guidelines adopted by the Board of
Directors, these securities are determined to be liquid.
4. 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 $129,999,408, or 3.7% of the Fund's net assets,
at December 31, 1995. The Fund may not invest more than 10% of its net
assets (determined at the time of purchase) in illiquid securities.
See accompanying Notes to Financial Statements.
STATEMENT OF ASSETS AND LIABILITIES December 31, 1995
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments, at value -- see accompanying statement......................... $3,543,729,107
Cash......................................................................... 8,588,133
Receivables:
Interest and principal paydowns............................................ 7,998,662
Shares of capital stock sold............................................... 408,611
Other........................................................................ 158,224
-------------
Total assets............................................................. 3,560,882,737
-------------
LIABILITIES:
Payables and other liabilities:
Shares of capital stock redeemed........................................... 35,638,297
Transfer and shareholder servicing agent fees -- Note 3................... 895,549
Shareholder reports........................................................ 353,412
Service plan fees -- Note 3............................................... 194,999
Dividends.................................................................. 25,790
Directors' fees............................................................ 7,157
Other...................................................................... 42,432
-------------
Total liabilities........................................................ 37,157,636
-------------
NET ASSETS................................................................... $3,523,725,101
-------------
-------------
COMPOSITION OF NET ASSETS:
Par value of shares of capital stock......................................... $ 352,358,838
Additional paid-in capital................................................... 3,171,229,546
Accumulated net realized gain on investment transactions..................... 136,717
-------------
NET ASSETS -- Applicable to 3,523,588,384 shares of capital stock
outstanding................................................................ $3,523,725,101
-------------
-------------
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE............... $1.00
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest....................................................................... $203,988,495
------------
EXPENSES:
Management fees -- Note 3..................................................... 12,746,352
Service plan fees -- Note 3................................................... 6,678,853
Transfer and shareholder servicing agent fees -- Note 3....................... 3,928,337
Shareholder reports............................................................ 263,477
Registration and filing fees................................................... 154,476
Legal and auditing fees........................................................ 32,651
Insurance expenses............................................................. 31,675
Directors' fees and expenses................................................... 29,250
Custodian fees and expenses.................................................... 221,556
Other.......................................................................... 8,550
-----------
Total expenses............................................................. 24,095,177
-----------
NET INVESTMENT INCOME.......................................................... 179,893,318
NET REALIZED GAIN ON INVESTMENTS............................................... 664,800
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $180,558,118
-----------
-----------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------
1995 1994
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income....................................... $ 179,893,318 $ 123,072,616
Net realized gain (loss).................................... 664,800 (27,746)
------------- -------------
Net increase in net assets resulting from operations...... 180,558,118 123,044,870
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS................. (180,522,108) (123,088,801)
CAPITAL STOCK TRANSACTIONS:
Net increase (decrease) in net assets resulting from capital
stock transactions -- Note 2............................. 565,456,928 (630,590,211)
------------- -------------
NET ASSETS:
Total increase (decrease)................................... 565,492,938 (630,634,142)
Beginning of period......................................... 2,958,232,163 3,588,866,305
-------------- -------------
End of period............................................... $3,523,725,101 $2,958,232,163
-------------- -------------
-------------- -------------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
<S> <C> <C> <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 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Income from investment operations --
net investment income and net
realized gain........................ .05 .04(1) .03 .03 .06 .08 .08 .07 .06 .06
Dividends and distributions to
shareholders......................... (.05) (.04) (.03) (.03) (.06) (.08) (.08) (.07) (.06) (.06)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value, end of period......... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
TOTAL RETURN, AT NET ASSET VALUE(2).... 5.47% 3.77% 2.69% 3.54% 5.87% 7.93% 8.94%
7.18% 6.51% 6.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
millions)............................ $3,524 $2,958 $3,589 $4,061 $5,208 $5,025 $4,920 $3,128 $2,555 $2,635
Average net assets (in millions)....... $3,379 $3,378 $3,940 $4,760 $5,434 $4,849 $4,112 $2,809 2,541 $2,530
Ratios to average net assets:
Net investment income................ 5.32% 3.64% 2.67% 3.50% 5.64% 7.61% 8.58% 7.01% 6.10%
6.11%
Expenses............................. 0.71% 0.73%(1) 0.74% 0.70% 0.67% 0.68% 0.71% 0.77% 0.78%
0.78%
</TABLE>
1. Net investment income would have been $.04 per share absent the
voluntary expense limitation, resulting in an expense ratio of .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.
See accompanying Notes to Financial Statements.
<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 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.
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, 1995 December 31, 1994
--------------------------------- ---------------------------------
Shares Amount Shares Amount
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold.......................... 7,320,626,109 $ 7,320,626,109 7,074,792,010 $ 7,074,792,010
Dividends and
distributions
reinvested.................. 177,673,219 177,673,219 120,864,868 120,864,868
Redeemed...................... (6,932,842,400) (6,932,842,400) (7,826,247,089) (7,826,247,089)
-------------- --------------- -------------- ---------------
Net increase
(decrease)............. 565,456,928 $ 565,456,928 (630,590,211) $ (630,590,211)
-------------- --------------- -------------- ---------------
-------------- --------------- -------------- ---------------
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
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 .45% on the
first $500 million of average annual 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 state
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 .20% of
its net assets annually to reimburse certain securities dealers and other
financial institutions and organizations for costs incurred in
distributing Fund shares.
APPENDIX A
DESCRIPTION OF SECURITIES RATINGS
Below is a description of the two highest rating categories for Short Term
Debt and Long Term Debt by the "Nationally-Recognized Statistical Rating
Organizations" which the Manager evaluates in purchasing securities on
behalf of the Fund. The ratings descriptions are based on information
supplied by the ratings organizations to subscribers.
Short Term Debt Ratings.
Moody's Investors Service, Inc. ("Moody's"): The following rating
designations for commercial paper (defined by Moody's as promissory
obligations not having original maturity in excess of nine months), are
judged by Moody's to be investment grade, and indicate the relative
repayment capacity of rated issuers:
Prime-1:
Superior capacity for repayment. Capacity will normally be evidenced by
the following characteristics: (a) leveling market positions in well-
established industries; (b) high rates of return on funds employed; (c)
conservative capitalization structures with moderate reliance on debt and
ample asset protection; (d) broad margins in earning coverage of fixed
financial charges and high internal cash generation; and (e) well
established access to a range of financial markets and assured sources of
alternate liquidity.
Prime-2:
Strong capacity for repayment. This will normally be evidenced by many
of the characteristics cited above but to a lesser degree. Earnings
trends and coverage ratios, while sound, will be more subject to
variation. Capitalization characteristics, while still appropriate, may
be more affected by external conditions. Ample alternate liquidity is
maintained.
Moody's ratings for state and municipal short-term obligations are
designated "Moody's Investment Grade" ("MIG"). Short-term notes which
have demand features may also be designated as "VMIG". These rating
categories are as follows:
MIG1/VMIG1:
Best quality. There is present strong protection by established cash
flows, superior liquidity support or demonstrated broadbased access to the
market for refinancing.
MIG2/VMIG2:
High quality. Margins of protection are ample although not so large as
in the preceding group.
Standard & Poor's Corporation ("S&P"): The following ratings by S&P for
commercial paper (defined by S&P as debt having an original maturity of
no more than 365 days) assess the likelihood of payment:
A-1:
Strong capacity for timely payment. Those issues determined to possess
extremely strong safety characteristics are denoted with a plus sign (+)
designation.
A-2:
Satisfactory capacity for timely payment. However, the relative degree
of safety is not as high as for issues designated "A-1".
S&P's ratings for Municipal Notes due in three years or less are:
SP-1:
Very strong or strong capacity to pay principal and interest. Those
issues determined to possess overwhelming safety characteristics will be
given a plus (+) designation.
SP-2:
Satisfactory capacity to pay principal and interest.
S&P assigns "dual ratings" to all municipal debt issues that have a demand
or double feature as part of their provisions. The first rating addresses
the likelihood of repayment of principal and interest as due, and the
second rating addresses only the demand feature. With short-term demand
debt, S&P's note rating symbols are used with the commercial paper symbols
(for example, "SP-1+/A-1+").
Fitch Investors Service, Inc. ("Fitch"): Fitch assigns the following
short-term ratings to debt obligations that are payable on demand or have
original maturities of generally up to three years, including commercial
paper, certificates of deposit, medium-term notes, and municipal and
investment notes:
F-1+:
Exceptionally strong credit quality; the strongest degree of assurance for
timely payment.
F-1:
Very strong credit quality; assurance of timely payment is only slightly
less in degree than issues rated "F-1+".
F-2:
Good credit quality; satisfactory degree of assurance for timely payment,
but the margin of safety is not as great as for issues assigned "F-1+" or
"F-1" ratings.
Duff & Phelps, Inc. ("Duff & Phelps"): The following ratings are for
commercial paper (defined by Duff & Phelps as obligations with maturities,
when issued, of under one year), asset-backed commercial paper, and
certificates of deposit (the ratings cover all obligations of the
institution with maturities, when issued, of under one year, including
bankers' acceptance and letters of credit):
Duff 1+:
Highest certainty of timely payment. Short-term liquidity, including
internal operating factors and/or access to alternative sources of funds,
is outstanding, and safety is just below risk-free U.S. Treasury short-
term obligations.
Duff 1:
Very high certainty of timely payment. Liquidity factors are excellent
and supported by good fundamental protection factors. Risk factors are
minor.
Duff 1-:
High certainty of timely payment. Liquidity factors are strong and
supported by good fundamental protection factors. Risk factors are very
small.
Duff 2:
Good certainty of timely payment. Liquidity factors and company
fundamentals are sound. Although ongoing funding needs may enlarge total
financing requirements, access to capital markets is good. Risk factors
are small.
IBCA Limited or its affiliate IBCA Inc. ("IBCA"): Short-term ratings,
including commercial paper (with maturities up to 12 months), are as
follows:
A1+: Obligations supported by the highest capacity for timely repayment.
A1: Obligations supported by a very strong capacity for timely repayment.
A2: Obligations supported by a strong capacity for timely repayment,
although such capacity may be susceptible to adverse changes in business,
economic, or financial conditions.
Thomson BankWatch, Inc. ("TBW"): The following short-term ratings apply
to commercial paper, certificates of deposit, unsecured notes, and other
securities having a maturity of one year or less.
TBW-1: The highest category; indicates the degree of safety regarding
timely repayment of principal and interest is very strong.
TBW-2: The second highest rating category; while the degree of safety
regarding timely repayment of principal and interest is strong, the
relative degree of safety is not as high as for issues rated "TBW-1".
Long Term Debt Ratings. These ratings are relevant for securities
purchased by the Fund with a remaining maturity of 397 days or less, or
for rating issuers of short-term obligations.
Moody's: Bonds (including municipal bonds) are rated as follows:
Aaa: Judged to be the best quality. They carry the smallest degree of
investment risk and are generally referred to as "gilt edge." Interest
payments are protected by a large or by an exceptionally stable margin,
and principal is secure. While the various protective elements are likely
to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong positions of such issues.
Aa: Judged to be of high quality by all standards. Together with the
"Aaa" group they comprise what are generally known as high-grade bonds.
They are rated lower than the best bonds because margins of protection may
not be as large as in "Aaa" securities or fluctuations of protective
elements may be of greater amplitude or there may be other elements
present which make the long-term risks appear somewhat larger than in
"Aaa" securities.
Moody's applies numerical modifiers "1", "2" and "3" in its "Aa" rating
classification. The modifier "1" indicates that the security ranks in the
higher end of its generic rating category; the modifier "2" indicates a
mid-range ranking; and the modifier "3" indicates that the issue ranks
in the lower end of its generic rating category.
Standard & Poor's: Bonds (including municipal bonds) are rated as
follows:
AAA: The highest rating assigned by S&P. Capacity to pay interest and
repay principal is extremely strong.
AA: A strong capacity to pay interest and repay principal and differ from
"AAA" rated issues only in small degree.
Fitch:
AAA: Considered to be investment grade and of the highest credit quality.
The obligor has an exceptionally strong ability to pay interest and repay
principal, which is unlikely to be affected by reasonably foreseeable
events.
AA: Considered to be investment grade and of very high credit quality.
The obligor's ability to pay interest and repay principal is very strong,
although not quite as strong as bonds rated "AAA". Plus (+) and minus (-)
signs are used in the "AA" category to indicate the relative position of
a credit within that category.
Because bonds rated in the "AAA" and "AA" categories are not significantly
vulnerable to foreseeable future developments, short-term debt of these
issuers is generally rated "F-1+".
Duff & Phelps:
AAA: The highest credit quality. The risk factors are negligible, being
only slightly more than for risk-free U.S. Treasury debt.
AA: High credit quality. Protection factors are strong. Risk is modest
but may vary slightly from time to time because of economic conditions.
Plus (+) and minus (-) signs are used in the "AA" category to indicate the
relative position of a credit within that category.
IBCA: Long-term obligations (with maturities of more than 12 months) are
rated as follows:
AAA: The lowest expectation of investment risk. Capacity for timely
repayment of principal and interest is substantial such that adverse
changes in business, economic, or financial conditions are unlikely to
increase investment risk significantly.
AA: A very low expectation for investment risk. Capacity for timely
repayment of principal and interest is substantial. Adverse changes in
business, economic, or financial conditions may increase investment risk
albeit not very significantly.
A plus (+) or minus (-) sign may be appended to a long term rating to
denote relative status within a rating category.
TBW: TBW issues the following ratings for companies. These ratings
assess the likelihood of receiving payment of principal and interest on
a timely basis and incorporate TBW's opinion as to the vulnerability of
the company to adverse developments, which may impact the market's
perception of the company, thereby affecting the marketability of its
securities.
A: Possesses an exceptionally strong balance sheet and earnings record,
translating into an excellent reputation and unquestioned access to its
natural money markets. If weakness or vulnerability exists in any aspect
of the company's business, it is entirely mitigated by the strengths of
the organization.
A/B: The company is financially very solid with a favorable track record
and no readily apparent weakness. Its overall risk profile, while low,
is not quite as favorable as for companies in the highest rating category.
<PAGE>
APPENDIX B
AUTOMATIC WITHDRAWAL PLAN PROVISIONS
By requesting an Automatic Withdrawal Plan, the shareholder agrees
to the terms and conditions applicable to such plans, as stated below and
elsewhere in the Application for such Plans, and the Prospectus and this
Statement of Additional Information as they may be amended from time to
time by the Fund and/or the Distributor. When adopted, such amendments
will automatically apply to existing Plans.
Fund shares will be redeemed as necessary to meet withdrawal
payments. Depending on the amount withdrawn, the investor's principal may
be depleted. Payments made to shareholders under such plans may not be
considered as a yield or income on investment. Purchases of additional
shares concurrently with withdrawals are undesirable because of sales
charges on purchases. Accordingly, a shareholder may not maintain an
Automatic Withdrawal Plan while simultaneously making regular purchases.
1. Shareholder Services, Inc. (the "Transfer Agent") will administer the
Automatic Withdrawal Plan (the "Plan") as agent for the person (the
"Planholder") who executed the Plan authorization and application
submitted to the Transfer Agent.
2. Certificates will not be issued for shares of the Funds purchased for
and held under the Plan, but the Transfer Agent will credit all such
shares to the account of the Planholder on the records of the Fund. Any
share certificates now held by the Planholder may be surrendered
unendorsed to the Transfer Agent with the Plan application so that the
shares represented by the certificate may be held under the Plan. Those
shares will be carried on the Planholder's Plan Statement.
3. Distributions of capital gains must be reinvested in shares of the
Fund, which will be done at net asset value without a sales charge.
Dividends may be paid in cash or reinvested.
4. Redemptions of shares in connection with disbursement payments will
be made at the net asset value per share determined on the redemption
date.
5. Checks or ACH payments will be transmitted three business days prior
to the date selected for receipt of the monthly or quarterly payment (the
date of receipt is approximate), according to the choice specified in
writing by the Planholder.
6. The amount and the interval of disbursement payments and the address
to which checks are to be mailed may be changed at any time by the
Planholder on written notification to the Transfer Agent. The Planholder
should allow at least two weeks' time in mailing such notification before
the requested change can be put into effect.
7. The Planholder may, at any time, instruct the Transfer Agent by
written notice (in proper form in accordance with the requirements of the
then-current Prospectus of the Fund) to redeem all, or any part of, the
shares held under the Plan. In such case, the Transfer Agent will redeem
the number of shares requested at the net asset value per share in effect
in accordance with the Fund's usual redemption procedures and will mail
a check for the proceeds of such redemption to the Planholder.
8. The Plan may, at any time, be terminated by the Planholder on written
notice to the Transfer Agent, or by the Transfer Agent upon receiving
directions to that effect from the Fund. the Transfer Agent will also
terminate the Plan upon receipt of evidence satisfactory to it of the
death or legal incapacity of the Planholder. Upon termination of the Plan
by the Transfer Agent or the Fund, shares remaining unredeemed will be
held in an uncertificated account in the name of the Planholder, and the
account will continue as a dividend-reinvestment, uncertificated account
unless and until proper instructions are received from the Planholder, his
executor or guardian, or as otherwise appropriate.
9. For purposes of using shares held under the Plan as collateral, the
Planholder may request issuance of a portion of his shares in certificated
form. Upon written request from the Planholder, the Transfer Agent will
determine the number of shares as to which a certificate may be issued,
so as not to cause the withdrawal checks to stop because of exhaustion of
uncertificated shares needed to continue payments. Should such
uncertificated shares become exhausted, Plan withdrawals will terminate.
10. The Transfer Agent shall incur no liability to the Planholder for any
action taken or omitted by the Transfer Agent in good faith.
11. In the event that the Transfer Agent shall cease to act as
transfer agent for the Fund, the Planholder will be deemed to have
appointed any successor transfer agent to act as his agent in
administering the Plan.
<PAGE>
APPENDIX C
INDUSTRY CLASSIFICATIONS
Aerospace/Defense
Air Transportation
Auto Parts Distribution
Automotive
Bank Holding Companies
Banks
Beverages
Broadcasting
Broker-Dealers
Building Materials
Cable Television
Chemicals
Commercial Finance
Computer Hardware
Computer Software
Conglomerates
Consumer Finance
Containers
Convenience Stores
Department Stores
Diversified Financial
Diversified Media
Drug Stores
Drug Wholesalers
Durable Household Goods
Education
Electric Utilities
Electrical Equipment
Electronics
Energy Services & Producers
Entertainment/Film
Environmental
Food
Gas Transmission
Gas Utilities
Gold
Health Care/Drugs
Health Care/Supplies & Services
Homebuilders/Real Estate
Hotel/Gaming
Industrial Services
Insurance
Leasing & Factoring
Leisure
Manufacturing
Metals/Mining
Nondurable Household Goods
Oil - Integrated
Paper
Publishing/Printing
Railroads
Restaurants
Savings & Loans
Shipping
Special Purpose Financial
Specialty Retailing
Steel
Supermarkets
Telecommunications - Technology
Telephone - Utility
Textile/Apparel
Tobacco
Toys
Trucking
<PAGE>
Investment Adviser and Distributor
Centennial Asset Management Corporation
3410 South Galena Street
Denver, Colorado 80231
Transfer and Shareholder Servicing Agent
Shareholder Services, Inc.
P.O. Box 5143
Denver, Colorado 80217
1-800 525-9310
Custodian
Citibank, N.A.
399 Park Avenue
New York, New York 10043
Independent Auditors
Deloitte & Touche LLP
555 Seventeenth Street, Suite 3600
Denver, Colorado 80202-3942
Legal Counsel
Myer, Swanson, Adams & Wolf, P.C.
The Colorado State Bank Building
1600 Broadway, Suite 1480
Denver, Colorado 80202
<PAGE>
DAILY CASH ACCUMULATION FUND, INC.
FORM N-1A
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
1. Financial Highlights (See Part A): Filed herewith.
2. Independent Auditors' Report (See Part B): Filed herewith.
3. Statement of Investments (See Part B): Filed herewith.
4. Statement of Assets and Liabilities (See Part B): Filed
herewith.
5. Statement of Operations (See Part B): Filed herewith.
6. Statements of Changes in Net Assets (See Part B): Filed
herewith.
7. Notes to Financial Statements (See Part B): Filed herewith.
(b) Exhibits:
1.(a) Articles of Incorporation dated 12/5/79: filed 12/11/79
(Maryland): filed with Post-Effective Amendment No. 9 to
Registrant's Registration Statement, 10/30/81, and refiled with
Registrant's Post-Effective Amendment No. 37, 4/17/95, pursuant to
Item 102 of regulation S-T, and incorporated herein by reference.
(b) Articles of Amendment dated 6/24/80, 4/20/81 and 6/5/81 to
Articles of Incorporation: filed with Post-Effective Amendment No.
9 to Registrant's Registration Statement, 10/30/81, and refiled
with Registrant's Post-Effective Amendment No. 37, 4/17/95,
pursuant to Item 102 of regulation S-T, and incorporated herein by
reference.
2. By-Laws, amended through 6/26/90: filed with Post-Effective
Amendment No. 31 to the Registrant's Registration Statement,
4/29/92, and refiled with Registrant's Post-Effective Amendment
No. 37, 4/17/95, pursuant to Item 102 of regulation S-T, and
incorporated herein by reference.
3. Not applicable.
4. Specimen Common Stock Certificate: filed with Post-Effective
Amendment No. 34 to the Registrant's Registration Statement,
4/21/94, and incorporated herein by reference.
5. Investment Advisory Agreement dated 10/22/90: filed with Post-
Effective Amendment No. 27 to the Registrant's Registration
Statement, 3/1/91, and refiled with Registrant's Post-Effective
Amendment No. 37, 4/17/95, pursuant to Item 102 of regulation
S-T, and incorporated herein by reference.
6.(a) General Distributor's Agreement dated 10/13/92 between Registrant
and Centennial Asset Management Corporation: filed with Post-
Effective Amendment No. 34 to Registrant's Registration Statement,
4/21/94, and incorporated herein by reference.
(b) Sub-Distributor's Agreement dated 5/28/93 between Centennial Asset
Management Corporation and Oppenheimer Funds Distributor, Inc.:
with Post-Effective Amendment No. 34 to Registrant's Registration
Statement, 4/21/94, and incorporated herein by reference.
(c) Form of Dealer Agreement of Centennial Asset Management Corp. -
Filed with Post-Effective Amendment No. 6 of the Registration
Statement of Daily Cash Government Trust, 10/26/84, (Reg.
No. 2-46891) and incorporated herein by reference.
(d) Form of Oppenheimer Funds Distributor, Inc. Dealer Agreement:
Filed with Post-Effective Amendment No. 14 of Oppenheimer Main
Street Funds, Inc. (Reg. No. 33-17850), 9/30/94, and incorporated
herein by reference.
7. Not applicable.
8.(a) Custody Agreement dated 7/19/78 and Amendment to Custodian
Agreement dated 7/19/78: filed with Post-Effective Amendment
No. 4 to Registrant's Registration Statement and refiled with
Registrant's Post-Effective Amendment No. 37, 4/17/95, pursuant
to Item 102 of regulation S-T, and incorporated herein by
reference.
(b) Second Amendment dated 12/29/81 to Custody Agreement: filed with
Post-Effective Amendment No. 9 to Registrant's Registration
Statement, 10/30/81, and refiled with Registrant's Post-Effective
Amendment No. 37, 4/17/95, pursuant to Item 102 of regulation S-T,
and incorporated herein by reference.
9. Not applicable.
10. Opinion and Consent of Counsel dated 7/21/78: filed with Pre-
Effective Amendment No. 6 to Registrant's Registration Statement,
7/25/78, and refiled with Registrant's Post-Effective Amendment
No. 37, 4/17/95, pursuant to Item 102 of regulation S-T, and
incorporated herein by reference.
11. Independent Auditor's Consent: Filed herewith.
12. Not applicable.
13. Not applicable.
14.(a) Form of prototype Standardized and Non-Standardized Profit-Sharing
Plans and Money Purchase Plans for self-employed persons and
corporations: filed with Post-Effective Amendment No. 3 to the
Registration Statement of Oppenheimer Global Growth & Income Fund
(Reg. No. 33-23799), 1/31/92, and refiled with Post-Effective
Amendment No. 7 to the Registration Statement of Oppenheimer
Global Growth & Income Fund (Reg. No. 33-23799), 12/1/94, pursuant
to Item 102 of Regulation S-T, and incorporated herein by
reference.
(b) Form of Individual Retirement Account Trust Agreement: filed with
Post-Effective Amendment No. 21 of Oppenheimer U.S. Government
Trust (Reg. No. 2-76645), 8/25/93 and incorporated herein by
reference.
(c) Form of Tax Sheltered Retirement Plan and Custody Agreement for
employees of public schools and tax-exempt organizations: filed
with Post-Effective Amendment No. 47 of the Registration Statement
of Oppenheimer Growth Fund (Reg. No. 2-45272), 10/21/94, and
incorporated herein by reference.
(d) Form of Simplified Employee Pension IRA: filed with Post-Effective
Amendment No. 42 to the Registration Statement of Oppenheimer
Equity Income Fund (Reg. No. 2-33043), 10/28/94, and incorporated
herein by reference.
(e) Form of SAR-SEP Simplified Employee Pension IRA: filed with Post-
Effective Amendment No. 15 to the Registration Statement of
Oppenheimer Mortgage Income Fund (File No. 33-6614), 1/19/95, and
incorporated herein by reference.
15.(a) Service Plan and Agreement dated 8/24/93 under Rule 12b-1 of the
Investment Company Act of 1940: Filed with Registrant's Post-
Effective Amendment No. 37, 4/17/95, pursuant to Item 102 of
regulation S-T, and incorporated herein by reference.
(b) Distribution Assistance Agreement dated 4/28/92 between Centennial
Asset Management Corporation and A.G. Edwards & Sons, Inc. - Filed
with Post-Effective Amendment No. 34 to Registrant's Registration
Statement, 4/21/94, and incorporated herein by reference.
16. Performance Data Computation Schedule: Filed herewith.
17. Financial Date Schedule: Filed herewith.
-- Powers of Attorney: Filed herewith (Bridget A. Macaskill) and
previously filed (all other Trustees) with Post-Effective
Amendment No. 34 to the Registrant's Registration Statement
4/21/94, and incorporated herein by reference.
Item 25. Persons Controlled by and Under Common Control with Registrant
None
Item 26. Number of Holders of Securities
Number of Record Holders
Title of Class as of April 19, 1996
Common Stock, par value $.10 350,434
Item 27. Indemnification
Reference is made to Registrant's Articles of Incorporation, previously
filed as an exhibit to this Registration Statement, incorporated herein
by reference, and to Section 2-418 of the Maryland General Corporation
Law.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of Registrant pursuant to the foregoing provisions or otherwise,
Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as
expressed in the Securities Act of 1933 and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by Registrant of expenses incurred or paid by a
director, officer or controlling person of Registrant in the successful
defense of any action, suit or proceeding) is asserted by such director,
officer of controlling person, Registrant will, unless in the opinion of
its counsel the matter has been settled by controlling precedent, submit
to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the
Securities Act of 1933 and will be governed by the final adjudication of
such issue.
Item 28. Business and Other Connections of Investment Adviser
(a) Centennial Asset Management Corporation is the investment adviser
of the Registrant; it and certain subsidiaries and affiliates act in the
same capacity to other registered investment companies as described in
Parts A and B hereof and listed in Item 28(b) below.
(b) There is set forth below information as to any other business,
profession, vocation or employment of a substantial nature in which each
officer and director of Centennial Asset Management Corporation is, or at
any time during the past two fiscal years has been, engaged for his/her
own account or in the capacity of director, officer, employee, partner or
trustee.
<TABLE>
<CAPTION>
Name & Current Position
with Centennial Asset Other Business and Connections
Management Corporation During the Past Two Years
- ----------------------- ------------------------------
<S> <C>
George C. Bowen, Director, Treasurer of the New York-based
Senior Vice President, Oppenheimer funds; Vice President, Treasurer
and Assistant Secretary and Treasurer of the Denver-
Secretary. based Oppenheimer funds. Vice President and
Treasurer of OppenheimerFunds Distributor,
Inc. ("OFDI") and HarbourView
Asset Management Corporation
("HarbourView"), an investment adviser
subsidiary of OFI; Vice President,
Treasurer and Secretary of Shareholder
Services, Inc. ("SSI") and Shareholder
Financial Services, Inc. ("SFSI"), transfer
agent subsidiaries of OFI; President,
Treasurer and Director of Centennial Capital Corporation; Vice
President and Treasurer of Main Street
Advisers; Treasurer of Oppenheimer Partnership Holdings, Inc.
Michael Carbuto, Vice Vice President and Portfolio Manager of
President Centennial California Tax Exempt Trust,
Centennial New York Tax Exempt Trust and
Centennial Tax Exempt Trust.
Andrew J. Donohue, President Secretary of the New York-based
and Director Oppenheimer funds; Vice President and
Secretary of the Denver-based Oppenheimer
funds; Executive
Vice President, Director and General Counsel
of the Distributor; Executive Vice
President
and General Counsel of OFI; Director of
HarbourView Asset Management; Director of
Main Street Advisers; Director of
Oppenheimer Partnership Holdings, Inc.;
formerly Senior Vice President and
Associate General Counsel of OFI and OFDI.
Katherine P. Feld, Secretary Vice President and Secretary of OFDI;
Secretary of HarbourView, Main Street Advisers, Inc. and
Oppenheimer Partnership Holdings, Inc.;
Secretary, Vice President and Director of Centennial
Capital Corp.
Gary P. Tyc, Assistant Assistant Treasurer of OFDI and
Treasurer and Assistant SFSI.
Secretary
Dorothy Warmack, Vice Vice President and Portfolio Manager of
President Daily Cash Accumulation Fund, Inc.,
Oppenheimer Cash Reserves, Oppenheimer
Variable Account Funds, Centennial
America Fund, L.P., Centennial Government
Trust and Centennial Money Market Trust;
Vice President of OFI.
Carol Wolf, Vice President Vice President and Portfolio Manager of
Oppenheimer Money Market Fund, Inc.,
Centennial America Fund, L.P., Centennial
Government Trust, Centennial Money Market
Trust and Daily Cash Accumulation Fund,
Inc.; Vice President of Oppenheimer Multi-
Sector Income Trust, Vice President of OFI.
Arthur Zimmer, Vice Vice President and Portfolio Manager of
President Oppenheimer Variable Account Funds,
Centennial America Fund, L.P., Oppenheimer
Money Fund, Centennial Government Trust,
Centennial Money Market Trust and Daily Cash
Accumulation Fund, Inc.; Vice President of
Oppenheimer Multi-Sector Income Trust; Vice
President of OFI; an officer of other
Oppenheimer funds.
</TABLE>
The Oppenheimer funds include the New York-based Oppenheimer funds
and the Denver-based Oppenheimer funds set forth below:
New York-based Oppenheimer funds
Oppenheimer Asset Allocation Fund
Oppenheimer California Tax-Exempt Fund
Oppenheimer Discovery Fund
Oppenheimer Enterprise Fund
Oppenheimer Global Emerging Growth Fund
Oppenheimer Global Fund
Oppenheimer Global Growth & Income Fund
Oppenheimer Gold & Special Minerals Fund
Oppenheimer Growth Fund
Oppenheimer International Growth Fud
Oppenheimer Money Market Fund, Inc.
Oppenheimer Multi-Government Trust
Oppenheimer Multi-Sector Income Trust
Oppenheimer Multi-State Tax-Exempt Trust
Oppenheimer New York Tax-Exempt Trust
Oppenheimer Fund
Oppenheimer Quest Global Value Fund, Inc.
Oppenheimer Quest Value Fund, Inc.
Oppenheimer Quest for Value Funds
Oppenheimer Target Fund
Oppenheimer Tax-Free Bond Fund
Oppenheimer U.S. Government Trust
Denver-based Oppenheimer funds
Oppenheimer Cash Reserves
Centennial America Fund, L.P.
Centennial California Tax Exempt Trust
Centennial Government Trust
Centennial Money Market Trust
Centennial New York Tax Exempt Trust
Centennial Tax Exempt Trust
Daily Cash Accumulation Fund, Inc.
The New York Tax-Exempt Income Fund, Inc.
Oppenheimer Champion Income Fund
Oppenheimer Equity Income Fund
Oppenheimer High Yield Fund
Oppenheimer Integrity Funds
Oppenheimer International Bond Fund
Oppenheimer Limited-Term Government Fund
Oppenheimer Main Street Funds, Inc.
Oppenheimer Strategic Funds Trust
Oppenheimer Strategic Income & Growth Fund
Oppenheimer Tax-Exempt Fund
Oppenheimer Total Return Fund, Inc.
Oppenheimer Variable Account Funds
Rochester-based Funds
Rochester Fund Municipals
Bond Fund Series - Oppenheimer Bond Fund For
Growth
Rochester Portfolio Series - Limited Term
New York Municipal Fund
The address of Oppenheimer funds, Inc., the New York-based
Oppenheimer funds, OppenheimerFunds Distributor, Inc., Harbourview Asset
Management Corp., Oppenheimer Partnership Holdings, Inc., and Oppenheimer
Acquisition Corp. is Two World Trade Center, New York, New York 10048-
0203.
The address of the Denver-based Oppenheimer funds, Shareholder
Financial Services, Inc., Shareholder Services, Inc., OppenheimerFunds
Services, Centennial Asset Management Corporation, Centennial Capital
Corp., and Main Street Advisers, Inc. is 3410 South Galena Street, Denver,
Colorado 80231.
The address of the Rochester-based funds is 350 Linden Oaks,
Rochester, New York 14625-2807.
Item 29. Principal Underwriter
(a) Centennial Asset Management Corporation is the Distributor of
Registrant's shares. It is also the Distributor of each of the other
registered open-end investment companies for which Centennial Asset
Management Corporation is the investment adviser, as described in Part A
and B of this Registration Statement and listed in Item 28(b) above.
(b) The directors and officers of the Registrant's principal
underwriter are:
<TABLE>
<CAPTION>
Positions and
Name & Principal Positions & Offices Offices and
and with with
Business Address Underwriter Registrant
- ---------------- ------------------- -------------
<S> <C> <C>
George C.Bowen+ Director, Senior Vice Vice President
President Treasurer and and Assistant
Assistant Secretary Treasurer
Michael Carbuto+ Vice President None
Andrew J. Donohue* President and Director Vice President
and
Secretary
Katherine P. Feld* Secretary None
Gary Paul Tyc+ Assistant Treasurer and None
Assistant Secretary
Dorothy Warmack+ Vice President Vice President &
Portfolio Manager
Carol Wolf* Vice President Vice President &
Portfolio Manager
Arthur Zimmer* Vice President Vice President
& Portfolio Manager
</TABLE>
* Two World Trade Center, New York, NY 10048-0203
+ 3410 South Galena St., Denver, CO 80231
(c) Not applicable.
Item 30. Location of Accounts and Records
The accounts, books and other documents required to be maintained by
Registrant pursuant to Section 31(a) of the Investment Company Act of 1940
and rules promulgated thereunder are under the possession of Centennial
Asset Management Corporation, whose business address is 3410 South Galena
Street, Denver, Colorado 80231.
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and/or the
Investment Company Act of 1940, the Registrant certifies that it meets all
the requirements for effectiveness of this Registration Statement pursuant
to Rule 485(b) under the Securities Act of 1933 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Denver and State of Colorado on
the 29th day of April, 1996.
DAILY CASH ACCUMULATION FUND, INC.
By: /s/ James C. Swain*
----------------------------------
James C. Swain, Chairman
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in
the capacities on the dates indicated:
Signatures Title Date
- ---------- ----- ----
/s/ James C. Swain* Chairman of the April 29, 1996
- ------------------ Board of Directors
James C. Swain
/s/ George C. Bowen* Chief Financial April 29, 1996
- ------------------- and Accounting
George C. Bowen Officer and Treasurer
/s/ Bridget A. Macaskill* President, Principal April 29, 1996
- ------------------------ Executive Officer & Director
Bridget A. Macaskill
/s/ Robert G. Avis* Director April 29, 1996
- ------------------
Robert G. Avis
/s/ William A. Baker* Director April 29, 1996
- --------------------
William A. Baker
/s/ Charles Conrad, Jr.* Director April 29, 1996
- -----------------------
Charles Conrad, Jr.
/s/ Jon S. Fossel* Director April 29, 1996
- --------------------
Jon S. Fossel
/s/ Raymond J. Kalinowski* Director April 29, 1996
- -------------------------
Raymond J. Kalinowski
/s/ C. Howard Kast* Director April 29, 1996
- ------------------
C. Howard Kast
/s/ Robert M. Kirchner* Director April 29, 1996
- ----------------------
Robert M. Kirchner
/s/ Ned M. Steel* Director April 29, 1996
- ----------------
Ned M. Steel
*By: /s/ Robert G. Zack
- --------------------------------
Robert G. Zack, Attorney-in-Fact
<PAGE>
DAILY CASH ACCUMULATION FUND, INC.
Registration No. 2-46891
Post-Effective Amendment No. 38
Exhibit Index
Exhibit Description
24(b)11 Independent Auditor's Consent
24(b)16 Performance Data Computation Schedule
24(b)17 Financial Data Schedule
-- Power of Attorney - Bridget A.
Macaskill
Exhibit 24(b)11
INDEPENDENT AUDITORS' CONSENT
- -----------------------------
Daily Cash Accumulation Fund, Inc.
We consent to the use in Post-Effective Amendment No. 38 to Registration
Statement No. 2-46891 of our report dated January 22, 1996 on the
financial statements of Daily Cash Accumulation Fund, Inc. appearing in
the Statement of Additional Information, which is a part of such
Registration Statement, and to the reference to us under the caption
"Financial Highlights" appearing in the Prospectus, which is also a part
of such Registration Statement.
/s/ Deloitte & Touche LLP
- ----------------------------
DELOITTE & TOUCHE LLP
Denver, Colorado
April 26, 1996
prosp\140con.wpd
Daily Cash Accumulation Fund, Inc.
Exhibit 24(b)(16) to Form N-1A
Performance Data Computation Schedule
1. YIELD AND EFFECTIVE YIELD FOR 7-DAY PERIOD ENDED 12/31/95:
Calculations of the Fund's "Yield" and "Compounded Effective Yield"
set forth
in the section entitled "Yield Information" in the Statement of
Additional
Information were made as follows:
Date Daily Accrual Per Share (in $)
12/26/95 .0001392
12/27/95 .0001395
12/28/95 .0001402
12/29/95 .0001398
12/30/95 .0001398
12/31/95 .0001399
01/01/96 .0001399
Seven Day
Total: .0009783
Current Yield: $0.0009783/7 x 365 = 5.10%
365/7
Effective Yield: (.0009783 + 1) - 1 = 5.23%
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000045129
<NAME> DAILY CASH ACCUMULATION FUND, INC.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 3543729107
<INVESTMENTS-AT-VALUE> 3543729107
<RECEIVABLES> 8407273
<ASSETS-OTHER> 158224
<OTHER-ITEMS-ASSETS> 8588133
<TOTAL-ASSETS> 3560882737
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 37157636
<TOTAL-LIABILITIES> 37157636
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3523588384
<SHARES-COMMON-STOCK> 3523588384
<SHARES-COMMON-PRIOR> 2958131456
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 136717
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 3523725101
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 203988495
<OTHER-INCOME> 0
<EXPENSES-NET> 24095177
<NET-INVESTMENT-INCOME> 179893318
<REALIZED-GAINS-CURRENT> 664800
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 180558118
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 180522108
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7320626109
<NUMBER-OF-SHARES-REDEEMED> 6932842400
<SHARES-REINVESTED> 177673219
<NET-CHANGE-IN-ASSETS> 565492938
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 100707
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 12746352
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 24095177
<AVERAGE-NET-ASSETS> 3379000000
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .71
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned constitutes
and appoints Andrew J. Donohue or Robert G. Zack, and each of them, her
true and lawful attorneys-in-fact and agents, with full power of
substitution and resubstitution, for her and in her capacity as a trustee
of DAILY CASH ACCUMULATION FUND, L.P., a Maryland corporation (the
"Fund"), to sign on her behalf any and all Registration Statements
(including any post-effective amendments to Registration Statements) under
the Securities Act of 1933, the Investment Company Act of 1940 and any
amendments and supplements thereto, and other documents in connection
thereunder, and to file the same, with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of
them, full power and authority to do and perform each and every act and
thing requisite and necessary to be done in and about the premises, as
fully as to all intents and purposes as she might or could do in person,
hereby ratifying and confirming all that said attorneys-in-fact and
agents, and each of them, may lawfully do or cause to be done by virtue
hereof.
Dated this 24th day of October, 1995.
/s/ Bridget A. Macaskill
- ---------------------------------
Bridget A. Macaskill
