Daily Cash Accumulation Fund, Inc. 1997 Semi-Annual Report
Officers and Directors
James C. Swain, Chairman and Chief
Executive Officer
Bridget A. Macaskill, Director and
President
Robert G. Avis, Director
William A. Baker, Director
Charles Conrad, Jr., Director
Jon S. Fossel, Director
Sam Freedman, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director Daily Cash
Robert M. Kirchner, Director
Ned M. Steel, Director Accumulation
George C. Bowen, Vice President, Treasurer Fund, Inc.
and Assistant Secretary
Andrew J. Donohue, Vice President and June 30, 1997
Secretary
Dorothy G. Warmack, Vice President
Carol E. Wolf, Vice President
Arthur J. Zimmer, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
Investment Adviser And Distributor
Centennial Asset Management Corporation
Transfer and Shareholder Servicing Agent
Shareholder Services, Inc.
Custodian of Portfolio Securities
Citibank, N.A.
Independent Auditors
Deloitte & Touche LLP
Legal Counsel
Myer, Swanson, Adams & Wolf, P.C.
The financial statements included
herein have been taken from the
records of the Fund without
examination by the independent
auditors.
This is a copy of a report to
shareholders of Daily Cash
Accumulation Fund, Inc. This report
must be preceded or accompanied by a
Prospectus of Daily Cash Accumulation
Fund, Inc. For material information
concerning the Fund, see the
Prospectus.
For shareholder servicing call:
1-800-525-9310 (in U.S.)
303-768-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5143
Denver, CO 80217-5143
<PAGE>
Dear Shareholder:
The job of a money market fund is to provide liquidity, safety of principal and
a yield that keeps pace with inflation. During the six months ended June 30,
1997, your Daily Cash Accumulation Fund, Inc. achieved those objectives.
For the six months ended June 30, 1997, Daily Cash Accumulation Fund, Inc. had
a compounded annualized yield of 5.05%. Without compounding, the corresponding
yield was 4.93%. The seven-day annualized yields, with and without compounding,
for the six months ended June 30, 1997 were 5.17% and 5.04%, respectively.1
It's important to remember that an investment in the Fund is neither insured
nor guaranteed by the U.S. government, and there is no assurance that the Fund
will maintain a stable $1.00 share price in the future.
Our strategy is to invest in the securities that present minimal credit risk.
Through our independent credit analysis, we are able to add value in the way of
additional yield, by identifying and investing in securities that are improving
credits. We may invest in securities that receive the second highest rating
issued by one credit rating agency, but that security must also have been
assigned the highest rating by at least two other ratings agencies. We invest
in such a "split-rated" security only if it is, in our opinion, an improving
credit and likely to be upgraded.
The U.S. economy is in the midst of one of its best periods in decades, with
growth in 1997 reaching an annual rate of 4%, up from about 2% in 1995.
Unemployment has fallen to its lowest level since the early 1970s. Meanwhile,
inflation is dormant, despite the strengthening economy.
As a result, interest rates have remained under control. Although 30-year
Treasury rates have risen above 7% several times during the past twelve months,
yields on short-term securities, such as U.S. Treasury bills and money market
securities, have hovered closer to 5%.
In comparison, the annual inflation rate is generally agreed to be about 2.5%.2
That means that the difference between money market yields and inflation is
roughly 3 percentage points, twice the normal "spread." Considering their low
level of risk and their traditional role as an alternative to cash, today's
money market fund yields are quite attractive.
On March 25, 1997, the Federal Reserve Board raised short-term interest rates
by 0.25%. Many market observers predicted the Fed's attempt to slow down the
economy, since the Gross Domestic Product during the first quarter of 1997 was
growing at a 5.8% annual rate. Although the March action came as no surprise,
the next question was whether the Fed was going to raise interest rates
further. However, the Fed often behaves unexpectedly. Many investors expected
the Fed to raise interest rates another 0.25% at its May 20, 1997 meeting.
Instead, the Fed left interest rates unchanged, satisfied that the economy was
slowing down.
Rather than try to make such predictions, our strategy is to "ladder" the
portfolio with some securities maturing in a few days, some maturing in a
month, some maturing in two months and so on. With a relatively broad maturity
spectrum, the portfolio is less affected by Fed moves up or down. At the same
time, the portfolio is able to enjoy
<PAGE>
higher income typically available on longer-term money market securities.
Thank you for your confidence in Daily Cash Accumulation Fund, Inc. We look
forward to helping you reach your investment goals in the future.
Sincerely,
/s/ James C. Swain
James C. Swain
Chairman
Daily Cash Accumulation Fund, Inc.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
President
Daily Cash Accumulation Fund, Inc.
July 22, 1997
1. Compounded yields assume reinvestment of dividends. An "annualized" yield
assumes that the actual six-month performance is replicated for a full
year. Past performance does not guarantee future results.
2. Data: Labor Dept.
2
<PAGE>
Statement of Investments June 30, 1997 (Unaudited)
Daily Cash Accumulation Fund, Inc.
Face Value
Amount See Note 1
------------ ------------
Bankers' Acceptances-0.6%
BankBoston, N.A.:
5.28%, 8/18/97............................... $ 7,000,000 $ 6,950,720
5.60%, 10/24/97.............................. 5,000,000 4,910,555
Societe Generale, 5.64%, 10/15/97............. 8,000,000 7,867,147
------------
Total Bankers' Acceptances.................... 19,728,422
------------
Certificates of Deposit-3.6%
Domestic Certificates of Deposit-0.6%
LaSalle National Bank:
5.46%, 7/1/97................................ 5,000,000 5,000,000
5.52%, 7/9/97................................ 8,000,000 8,000,000
5.53%, 7/2/97................................ 10,000,000 10,000,000
------------
23,000,000
------------
Yankee Certificates of Deposit-2.9%
ABN Amro Bank, N.V., 5.49%, 7/11/97........... 15,000,000 15,000,082
Deutsche Bank AG, 5.55%, 7/14/97.............. 10,000,000 10,000,035
Societe Generale:
5.68%, 8/21/97............................... 7,000,000 7,000,081
5.68%, 8/21/97............................... 10,000,000 9,999,925
5.72%, 10/21/97.............................. 10,000,000 9,989,803
5.75%, 12/23/97.............................. 15,000,000 15,000,000
5.75%, 12/23/97.............................. 15,000,000 15,000,000
5.75%, 8/8/97................................ 10,000,000 10,000,000
5.92%, 9/17/97............................... 10,000,000 10,006,032
------------
101,995,958
------------
Total Certificates of Deposit................. 124,995,958
Direct Bank Obligations-4.6%
Abbey National North America Corp.:
5.275%, 8/21/97.............................. 10,000,000 9,925,271
5.39%, 7/11/97............................... 10,000,000 9,985,014
ABN Amro North America Finance, Inc.:
5.28%, 7/23/97............................... 10,000,000 9,967,122
5.37%, 7/11/97............................... 15,000,000 14,997,625
BankBoston, N.A.:
5.53%, 7/11/97............................... 10,000,000 10,000,000
5.69%, 8/29/97............................... 10,000,000 10,000,000
5.69%, 9/8/97................................ 5,000,000 5,000,000
Bankers Trust Co., New York:
5.37%, 12/10/97(1)........................... 8,000,000 7,999,147
3
<PAGE>
Statement of Investments June 30, 1997 (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- --------------
<S> <C> <C>
Direct Bank Obligations (Continued)
Bankers Trust Co., New York: (Continued)
5.60%, 11/26/97(1)........................................... $10,000,000 $ 9,997,210
5.66%, 6/9/98(1)............................................. 8,000,000 7,996,352
FCC National Bank, 5.60%, 5/8/98(1)........................... 10,000,000 9,996,668
Societe Generale North America, Inc.:
5.39%, 7/14/97............................................... 15,000,000 14,970,804
5.59%, 12/10/97.............................................. 8,000,000 7,798,760
5.60%, 9/8/97................................................ 25,000,000 24,731,667
5.61%, 9/2/97................................................ 10,000,000 9,901,825
---------------
Total Direct Bank Obligations................................. 163,247,465
---------------
Letters of Credit-6.3%
ABN Amro Bank, N.V., guaranteeing commercial paper of:
Formosa Plastics Corp. USA-Series A:
5.60%, 8/26/97.............................................. 10,000,000 9,912,889
5.60%, 9/22/97.............................................. 5,000,000 4,935,444
5.63%, 8/28/97.............................................. 15,000,000 14,863,942
Bank of America NT & SA, guaranteeing commercial paper of:
Hyundai Motor Finance Co., 5.38%, 7/7/97..................... 5,000,000 4,995,517
Bank One, Cleveland, guaranteeing commercial paper of:
Capital One Funding Corp.-Series 1995F:
5.63%, 7/13/97(1)(2)........................................ 10,404,000 10,404,000
5.63%, 7/13/97(1)(2)........................................ 8,750,000 8,750,000
Barclays Bank PLC, guaranteeing commercial paper of:
Banco Bradesco SA-Grand Cayman Branch:
Series A, 5.65%, 12/1/97.................................... 5,000,000 4,881,212
Series A, 5.69%, 12/3/97.................................... 13,000,000 12,681,518
Series B, 5.62%, 12/3/97.................................... 5,000,000 4,879,014
Barclays Bank PLC, guaranteeing commercial paper of:
Banco Nacionale de Mexico SA-Series B, 5.63%, 7/1/97......... 10,000,000 10,000,000
Bayerische Vereinsbank AG, guaranteeing commercial paper of:
Galicia Funding Corp.-Series A:
5.63%, 9/5/97(3)............................................ 10,000,000 9,896,783
5.65%, 12/5/97(3)........................................... 13,000,000 12,681,421
Credit Suisse, guaranteeing commercial paper of:
CEMEX, S.A. de C.V.-Series A, 5.31%, 8/18/97................. 5,000,000 4,964,600
CEMEX, S.A. de C.V.-Series B, 5.61%, 8/22/97................. 17,000,000 16,862,243
CEMEX, S.A. de C.V.-Series B, 5.68%, 8/19/97................. 5,750,000 5,706,016
COSCO (Cayman) Co., Ltd., 5.59%, 10/24/97.................... 5,000,000 4,910,715
Daewoo International Corp., 5.45%, 7/15/97................... 6,000,000 5,987,283
Daewoo International Corp., 5.60%, 9/9/97.................... 10,000,000 9,891,111
</TABLE>
4
<PAGE>
Statement of Investments June 30, 1997 (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- --------------
<S> <C> <C>
Letters of Credit (Continued)
Guangdon Enterprises Ltd., 5.67%, 8/19/97.............................. $ 5,000,000 $ 4,961,412
Minmetals Capitals & Securities, Inc., 5.61%, 8/12/97.................. 5,000,000 4,967,275
Pemex Capital, Inc.-Series A, 5.28%, 7/14/97........................... 25,000,000 24,952,388
Pemex Capital, Inc.-Series B, 5.62%, 11/3/97........................... 5,000,000 4,902,431
Societe Generale, guaranteeing commercial paper of:
Banco Nacionale de Comercio Exterior, SNC-Series A, 5.61%, 11/25/97 5,000,000 4,885,463
Banco Nacionale de Comercio Exterior, SNC-Series B, 5.61%, 12/1/97..... 10,000,000 9,761,575
Nacional Financiera SNC-Series A, 5.75%, 8/18/97....................... 10,000,000 9,923,333
--------------
Total Letters of Credit................................................. 221,557,585
--------------
Short-Term Notes-80.3%
Automotive-1.4%
BMW US Capital Corp.:
5.60%, 8/20/97......................................................... 20,000,000 19,844,444
5.60%, 8/25/97......................................................... 10,000,000 9,914,444
5.62%, 8/26/97......................................................... 10,425,000 10,333,862
5.65%, 8/5/97.......................................................... 10,000,000 9,945,069
--------------
50,037,819
--------------
Bank Holding Companies-2.2%
Bankers Trust New York Corp., 5.39%, 7/9/97............................. 25,000,000 24,970,056
Barnett Banks, Inc., 5.70%, 7/7/97...................................... 15,000,000 14,985,750
CoreStates Capital Corp., 5.61%, 7/14/97(1)............................. 5,000,000 5,000,000
Morgan (J.P.) & Co., Inc., 5.38%, 7/9/97................................ 10,000,000 9,988,044
NationsBank Corp., 5.37%, 7/8/97........................................ 16,000,000 15,983,293
Norwest Corp., 7.70%, 11/15/97.......................................... 5,000,000 5,031,092
--------------
75,958,235
--------------
Beverages-0.3%
Coca-Cola Enterprises, Inc.:
5.66%, 7/24/97(3)...................................................... 5,000,000 4,981,919
5.68%, 7/14/97(3)...................................................... 5,000,000 4,989,744
--------------
9,971,663
--------------
Broker/Dealers-15.0%
Bear Stearns Cos., Inc.:
5.42%, 10/16/97(1)..................................................... 5,000,000 4,999,386
5.43%, 4/21/98(1)...................................................... 5,000,000 4,999,916
5.44%, 5/22/98(1)...................................................... 7,000,000 7,000,000
5.60%, 8/20/97......................................................... 10,000,000 9,922,222
5.61%, 8/27/97......................................................... 15,000,000 14,866,762
5.61%, 8/28/97......................................................... 10,000,000 9,909,617
</TABLE>
5
<PAGE>
Statement of Investments June 30, 1997 (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Broker/Dealers (Continued)
Bear Stearns Cos., Inc.: (Continued)
5.61%, 9/22/97............................... $ 7,000,000 $ 6,909,461
5.62%, 9/2/97................................ 15,000,000 14,852,475
5.62%, 9/4/97................................ 10,000,000 9,898,528
5.63%, 7/14/97............................... 16,000,000 15,967,471
5.64%, 10/6/97............................... 15,000,000 14,772,050
5.66%, 7/8/97................................ 18,000,000 17,980,190
5.677%, 2/9/98(1)............................ 5,000,000 5,006,286
CS First Boston, Inc.:
5.36%, 7/11/97............................... 5,000,000 4,992,556
5.42%, 5/12/98(1)............................ 5,000,000 5,000,000
5.43%, 6/2/98(1)............................. 5,000,000 5,000,000
5.617%, 3/13/98(1)........................... 8,000,000 8,000,000
Goldman Sachs Group, L.P.:
5.60%, 9/12/97............................... 15,000,000 14,829,667
5.61%, 9/10/97............................... 15,000,000 14,834,037
5.62%, 10/6/97............................... 10,000,000 9,848,572
5.62%, 9/4/97................................ 15,000,000 14,847,792
Promissory Nts., 5.844%, 10/10/97(2)......... 6,000,000 6,000,000
Promissory Nts., 5.87%, 11/10/97(2).......... 10,000,000 10,000,000
Promissory Nts., 5.88%, 12/12/97(2).......... 15,000,000 15,000,000
Promissory Nts., 5.89%, 9/4/97(2)............ 10,000,000 10,000,000
Lehman Brothers Holdings, Inc.:
5.62%, 11/21/97.............................. 10,000,000 9,776,761
5.63%, 8/22/97............................... 5,000,000 4,959,339
5.64%, 9/10/97............................... 20,000,000 19,777,533
5.65%, 7/10/97............................... 10,000,000 9,985,875
5.65%, 7/7/97................................ 10,000,000 9,990,583
5.677%, 2/3/98(1)............................ 10,000,000 10,000,000
5.771%, 6/18/98(1)........................... 10,000,000 10,030,510
Merrill Lynch & Co., Inc.:
5.28%, 7/3/97................................ 5,000,000 4,998,533
5.36%, 7/2/97................................ 10,000,000 9,998,511
5.40%, 7/9/97................................ 5,000,000 4,994,000
5.58%, 10/29/97.............................. 20,000,000 19,628,000
5.58%, 12/15/97.............................. 9,000,000 8,767,035
5.60%, 8/29/97............................... 5,000,000 4,954,111
5.63%, 7/14/97............................... 28,000,000 27,943,074
5.648%, 1/8/98(1)............................ 15,000,000 14,998,469
5.65%, 7/10/97............................... 10,000,000 9,985,875
5.68%, 10/24/97(1)........................... 10,000,000 9,999,370
5.68%, 3/18/98(1)............................ 5,000,000 4,999,304
</TABLE>
6
<PAGE>
Statement of Investments June 30, 1997 (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- --------------
<S> <C> <C>
Broker/Dealers (Continued)
5.68%, 7/16/97...................................................... $20,000,000 $ 19,952,667
5.685%, 5/26/98(1).................................................. 8,000,000 7,998,927
5.70%, 8/12/97...................................................... 5,000,000 4,966,750
5.75%, 12/19/97(1).................................................. 15,000,000 14,999,774
Morgan Stanley, Dean Witter, Discover & Co., 5.50%, 3/24/98......... 28,900,000 28,900,000
--------------
528,041,989
--------------
Chemicals-0.2%
Henkel Corp., 5.61%, 9/11/97(3)...................................... 6,185,000 6,115,604
--------------
Commercial Finance-16.9%
CIT Group Holdings, Inc.:
5.58%, 11/20/97(1).................................................. 15,000,000 14,995,578
5.60%, 5/22/98(1)................................................... 15,000,000 14,990,973
5.60%, 8/26/97...................................................... 10,000,000 9,912,889
5.625%, 9/17/97(1).................................................. 20,000,000 19,996,901
5.63%, 7/17/97...................................................... 10,000,000 9,974,978
5.764%, 3/11/98(1).................................................. 38,500,000 38,500,000
Countrywide Home Loans:
5.57%, 7/1/97....................................................... 15,000,000 15,000,000
5.57%, 7/9/97....................................................... 32,000,000 31,960,391
5.59%, 9/18/97...................................................... 20,000,000 19,754,661
5.61%, 8/27/97...................................................... 10,000,000 9,911,175
5.62%, 8/14/97...................................................... 10,000,000 9,931,311
5.62%, 8/26/97...................................................... 75,000,000 74,343,556
FINOVA Capital Corp.:
5.30%, 7/14/97...................................................... 5,000,000 4,990,431
5.40%, 7/1/97....................................................... 10,000,000 10,000,000
5.40%, 7/21/97...................................................... 5,000,000 4,985,000
5.43%, 7/10/97...................................................... 5,000,000 4,993,212
5.44%, 7/7/97....................................................... 10,000,000 9,990,775
5.47%, 7/11/97...................................................... 10,000,000 9,984,806
5.47%, 7/16/97...................................................... 5,000,000 4,988,604
5.61%, 10/30/97..................................................... 15,000,000 14,717,162
5.61%, 11/21/97..................................................... 8,000,000 7,821,727
5.61%, 11/7/97...................................................... 5,000,000 4,899,487
5.62%, 11/10/97..................................................... 5,000,000 4,896,967
5.63%, 12/4/97...................................................... 15,000,000 14,634,050
5.63%, 8/21/97...................................................... 10,000,000 9,920,242
5.64%, 11/14/97..................................................... 13,000,000 12,723,013
5.64%, 9/8/97....................................................... 10,000,000 9,891,900
5.65%, 9/19/97...................................................... 15,000,000 14,811,667
5.69%, 12/11/97..................................................... 20,000,000 19,484,739
</TABLE>
7
<PAGE>
Statement of Investments June 30, 1997 (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Commercial Finance (Continued)
Heller Financial, Inc.:
5.71%, 10/1/97(1) .................................... $20,000,000 $ 19,998,992
5.71%, 10/10/97(1) .................................... 13,000,000 12,999,281
5.72%, 8/27/97 ....................................... 15,000,000 14,864,150
5.73%, 9/9/97 .......................................... 15,000,000 14,832,875
5.74%, 11/13/97 ....................................... 15,000,000 14,677,125
5.75%, 12/15/97 ....................................... 9,000,000 8,759,938
5.75%, 7/16/97 ....................................... 10,000,000 9,976,042
5.75%, 9/4/97 .......................................... 10,000,000 9,896,181
5.75%, 9/8/97 .......................................... 7,000,000 6,922,854
5.80%, 10/9/97 ....................................... 20,000,000 19,677,778
5.80%, 12/22/97 ....................................... 15,000,000 14,579,500
5.831%, 12/18/97(1) .................................... 15,000,000 15,000,000
------------
595,190,911
------------
Computer Software-0.6%
First Data Corp.:
5.58%, 12/16/97 ....................................... 15,000,000 14,609,400
5.605%, 1/27/98 ....................................... 8,000,000 7,738,433
------------
22,347,833
------------
Conglomerates-0.5%
Mitsubishi International Corp.:
5.60%, 9/15/97 ....................................... 9,800,000 9,684,142
5.61%, 8/20/97 ....................................... 10,000,000 9,922,083
------------
19,606,225
------------
Consumer Finance-1.9%
Island Finance Puerto Rico, Inc.:
5.60%, 9/10/97 ....................................... 6,000,000 5,933,733
5.61%, 8/25/97 ....................................... 10,000,000 9,914,292
5.61%, 8/29/97 ....................................... 8,000,000 7,926,447
Sears Roebuck Acceptance Corp.:
5.60%, 8/25/97 ....................................... 10,000,000 9,914,444
6.20%, 7/1/97 .......................................... 31,800,000 31,800,000
------------
65,488,916
------------
Diversified Financial-7.0%
Associates Corp. of North America, 5.65%, 7/14/97 ...... 15,000,000 14,969,396
Ford Motor Credit Corp., 5.57%, 11/20/97 ............... 30,000,000 29,340,883
General Electric Capital Corp.:
5.37%, 7/10/97 ....................................... 10,000,000 9,986,575
5.40%, 7/8/97 .......................................... 10,000,000 9,989,500
5.57%, 11/28/97 ....................................... 25,000,000 24,419,792
</TABLE>
8
<PAGE>
Statement of Investments June 30, 1997 (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Diversified Financial (Continued)
5.59%, 9/15/97........................................... $25,000,000 $ 24,704,972
5.75%, 7/2/97............................................ 25,000,000 24,996,007
General Electric Capital Services, 5.36%, 7/16/97......... 7,000,000 6,984,367
General Motors Acceptance Corp.:
5.31%, 8/6/97............................................ 31,000,000 30,835,150
5.41%, 7/15/97........................................... 8,000,000 7,983,169
5.45%, 7/14/97........................................... 7,000,000 6,986,224
5.61%, 12/22/97.......................................... 7,000,000 6,810,195
5.73%, 11/18/97.......................................... 15,000,000 14,665,750
5.73%, 11/24/97.......................................... 8,000,000 7,814,093
5.75%, 4/21/98(1)........................................ 15,000,000 14,993,808
Prudential Funding Corp., 5.685%, 5/5/98(1)............... 10,000,000 9,997,964
------------
245,477,845
------------
Electronics-2.6%
Avnet, Inc.:
5.55%, 8/6/97............................................ 10,000,000 9,943,400
5.67%, 7/14/97........................................... 10,000,000 9,979,525
Mitsubishi Electric Finance America, Inc.:
5.63%, 8/20/97........................................... 10,000,000 9,921,806
5.63%, 9/3/97(3)......................................... 35,000,000 34,649,689
5.65%, 8/27/97(3)........................................ 7,000,000 6,937,379
5.66%, 8/6/97(3)......................................... 13,825,000 13,746,624
5.67%, 7/23/97(3)........................................ 5,000,000 4,982,675
------------
90,161,098
------------
Healthcare/Supplies & Services-1.3%
American Home Products Corp.:
5.62%, 9/8/97(3)......................................... 25,000,000 24,730,708
5.63%, 7/14/97(3)........................................ 9,871,000 9,850,932
5.63%, 9/3/97(3)......................................... 10,000,000 9,899,911
------------
44,481,551
------------
Industrial Services-0.5%
Atlas Copco AB, 5.625%, 8/25/97(3)........................ 5,000,000 4,957,031
PHH Corp.:
5.658%, 1/27/98(1)....................................... 5,000,000 4,999,091
5.698%, 1/15/98(1)....................................... 8,000,000 7,999,577
------------
17,955,699
------------
</TABLE>
9
<PAGE>
Statement of Investments June 30, 1997 (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Insurance-8.7%
Allstate Life Insurance Co., 5.691%, 7/1/97(1)................... $10,000,000 $ 10,000,000
General American Life Insurance Co., 5.89%, 7/1/97(1)............ 30,000,000 30,000,000
Jackson National Life Insurance Co.:
5.71%, 3/1/98(1)................................................ 30,000,000 30,000,000
5.711%, 8/1/98(1)............................................... 15,000,000 15,000,000
Pacific Mutual Life Insurance Co., 5.756%, 7/21/97(1)(2)......... 30,000,000 30,000,000
Protective Life Insurance Co.:
5.751%, 4/1/98(1)............................................... 10,000,000 10,000,000
5.841%, 7/21/97(1)(2)........................................... 20,000,000 20,000,000
5.773%, 1/31/00(1).............................................. 60,000,000 60,000,000
TransAmerica Life Insurance & Annuity Co.:
5.687%, 5/15/98(1).............................................. 10,000,000 10,000,000
5.691%, 10/15/97(1)............................................. 25,000,000 25,000,000
5.691%, 8/7/97(1)............................................... 25,000,000 25,000,000
5.691%, 9/30/97(1).............................................. 20,000,000 20,000,000
TransAmerica Occidental Corp., 5.691%, 9/29/97(1)................ 20,000,000 20,000,000
------------
305,000,000
------------
Leasing & Factoring-1.9%
American Honda Finance Corp.:
5.62%, 7/31/97.................................................. 25,000,000 24,882,917
5.65%, 8/4/97................................................... 10,000,000 9,946,639
5.812%, 6/16/98(1).............................................. 5,000,000 5,000,000
International Lease Finance Corp.:
5.27%, 7/17/97.................................................. 8,000,000 7,981,262
5.27%, 7/21/97.................................................. 10,000,000 9,970,722
The Hertz Corp., 5.60%, 9/2/97................................... 8,000,000 7,921,600
------------
65,703,140
------------
Manufacturing-0.1%
Rexam PLC, 5.67%, 8/12/97(3)..................................... 2,535,000 2,518,231
------------
Metals/Mining-0.4%
RTZ America, Inc.:
5.57%, 12/22/97(3).............................................. 5,500,000 5,351,931
5.58%, 12/19/97(3).............................................. 8,000,000 7,787,960
------------
13,139,891
------------
</TABLE>
10
<PAGE>
Statement of Investments June 30, 1997 (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Nondurable Household Goods-1.0%
Avon Capital Corp.:
5.63%, 9/8/97(3)............................................................ $ 8,000,000 $ 7,913,673
5.64%, 8/28/97(3)........................................................... 23,000,000 22,791,007
Newell Co., 5.60%, 10/17/97(3)............................................... 5,000,000 4,916,000
------------
35,620,680
------------
Oil-Integrated-0.4%
Repsol International Finance BV, 5.35%, 7/1/97............................... 15,000,000 15,000,000
------------
Savings & Loans-1.7%
First Bank FSB, 5.658%, 8/29/97(1)........................................... 7,000,000 6,999,889
Great Western Bank FSB:
5.61%, 9/17/97.............................................................. 7,000,000 6,914,915
5.62%, 8/27/97.............................................................. 35,000,000 34,688,954
5.62%, 9/11/97.............................................................. 10,000,000 9,887,800
------------
58,491,558
------------
Special Purpose Financial-15.1%
Asset Backed Capital Finance, Inc.:
5.60%, 11/17/97(3).......................................................... 4,000,000 3,913,511
5.65%, 7/8/97(3)............................................................ 17,400,000 17,380,884
5.66%, 3/16/98(1)(2)........................................................ 5,000,000 4,998,416
5.67%, 12/1/97(3)........................................................... 23,200,000 22,640,938
5.687%, 12/15/97(1)(2)...................................................... 15,000,000 14,997,563
Asset Backed Securities Investment Trust-Series 1997A, 5.738% 2/16/98(1)(2) 15,000,000 14,999,063
Asset Securitization Cooperative Corp.:
5.63%, 8/4/97(3)............................................................ 10,000,000 9,946,828
5.64%, 7/7/97(3)............................................................ 55,000,000 54,948,300
Beta Finance, Inc.:
5.61%, 9/5/97(3)............................................................ 9,000,000 8,907,435
5.62%, 9/26/97(3)........................................................... 12,000,000 11,837,020
5.62%, 9/8/97(3)............................................................ 8,000,000 7,913,827
Corporate Asset Funding Co., Inc.:
5.60%, 12/12/97(3).......................................................... 18,000,000 17,540,800
5.60%, 8/25/97(3)........................................................... 15,000,000 14,871,667
CXC, Inc.:
5.59%, 9/8/97(3)............................................................ 15,000,000 14,839,288
5.62%, 11/17/97(3).......................................................... 5,000,000 4,891,503
5.62%, 7/3/97(3)............................................................ 10,000,000 9,996,878
5.62%, 8/15/97(3)........................................................... 7,000,000 6,950,825
5.62%, 9/3/97(3)............................................................ 20,000,000 19,800,178
5.63%, 7/9/97(3)............................................................ 10,000,000 9,987,489
</TABLE>
11
<PAGE>
Statement of Investments June 30, 1997 (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- -------------
<S> <C> <C>
Special Purpose Financial (Continued)
Enterprise Funding Corp.:
5.61%, 8/11/97(3).......................................... $10,000,000 $ 9,936,108
5.64%, 8/28/97(3).......................................... 20,097,000 19,914,385
5.65%, 12/10/97(3)......................................... 10,000,000 9,745,750
5.65%, 7/16/97(3).......................................... 8,000,000 7,981,167
Falcon Asset Securitization Corp.:
5.60%, 7/28/97(3).......................................... 38,400,000 38,238,720
5.67%, 8/18/97(3).......................................... 10,800,000 10,718,352
New Center Asset Trust, 5.27%, 7/28/97...................... 20,000,000 19,920,950
Preferred Receivables Funding Corp.:
5.40%, 7/10/97............................................. 5,375,000 5,367,744
5.62%, 8/28/97............................................. 10,350,000 10,256,287
RACERS:
Series 1996-MM-12-3, 5.687%, 12/15/97(1)(2)................ 15,000,000 15,000,000
Series 1997-MM-1-1, 5.687%, 1/15/98(1)(2).................. 12,000,000 11,997,414
Sigma Finance, Inc.:
5.60%, 10/15/97(3)......................................... 13,000,000 12,785,644
5.60%, 12/4/97(3).......................................... 3,000,000 2,927,200
5.61%, 8/27/97(3).......................................... 6,500,000 6,442,264
5.62%, 9/10/97(3).......................................... 15,000,000 14,833,742
5.64%, 8/28/97(3).......................................... 10,000,000 9,909,133
5.68%, 7/25/97(3).......................................... 13,000,000 12,950,773
5.69%, 11/26/97(3)......................................... 5,000,000 4,883,039
5.70%, 8/19/97(3).......................................... 10,000,000 9,922,417
SMM Trust 1996-B, 5.738%, 8/4/97(1)(2)...................... 10,000,000 10,000,000
SMM Trust 1997-I, 5.687%, 5/29/98(1)(2)..................... 10,000,000 10,000,000
TIERS Series DCMT 1996-A, 5.717%, 10/15/97(1)(2)............ 5,000,000 5,000,000
-------------
530,093,502
-------------
Specialty Retailing-0.6%
St. Michael Finance Ltd., 5.61%, 9/11/97.................... 22,000,000 21,753,160
-------------
Total Short-Term Notes...................................... 2,818,155,550
-------------
U.S. Government Obligations-1.3%
Federal Home Loan Bank, 5.67%, 8/1/97(1).................... 34,000,000 33,997,453
Student Loan Marketing Assn., 5.82%, 1/23/98................ 10,000,000 9,999,153
-------------
Total U.S. Government Obligations (Cost $43,996,606)........ 43,996,606
-------------
</TABLE>
12
<PAGE>
Statement of Investments June 30, 1997 (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
Foreign Government Obligations-0.9%
Bayerische Landesbank Girozentrale, 5.80%, 7/29/97(1)............... $ 15,000,000 $ 15,000,000
Swedish Export Credit Corp., 5.36%, 7/9/97.......................... 15,000,000 14,982,133
--------------
Total Foreign Government Obligations................................ 29,982,133
--------------
Municipal Bonds and Notes-0.1%
Virginia Housing Development Authority Series 1997-A-STEM 11, 5.85%,
12/30/97........................................................... 5,000,000 4,998,647
--------------
Total Investments, at Value......................................... 97.6% 3,426,662,366
Other Assets Net of Liabilities..................................... 2.4 84,564,549
------------ --------------
Net Assets.......................................................... 100.0% $3,511,226,915
============ ==============
</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. The interest rate, which is based on
specific, or an index of, market interest rates, is subject to change
periodically and is the effective rate on June 30, 1997. This instrument
may also have a demand feature which allows the recovery of principal at
any time, or at specified intervals not exceeding one year, on up to 30
days' notice. Maturity date shown represents effective maturity based on
variable rate and, if applicable, demand feature.
2. Restricted securities which are considered illiquid, by virtue of the
absence of a readily available market or because of legal or contractual
restrictions on resale, amount to $197,146,456, or 5.61% of the Fund's net
assets. The Fund may not invest more than 10% of its net assets (determined
at the time of purchase) in illiquid securities.
3. Restricted securities, including those issued in exempt transactions without
registration under the Securities Act of 1933 (the Act), amounting to
$607,255,287, or 17.29% of the Fund's net assets, have been determined to
be liquid pursuant to guidelines adopted by the Board of Directors.
See accompanying Notes to Financial Statements.
13
<PAGE>
Statement of Assets and Liabilities June 30, 1997 (Unaudited)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<S> <C>
ASSETS:
Investments, at value-see accompanying statement............................. $3,426,662,366
Cash......................................................................... 422,403
Receivables:
Shares of capital stock sold................................................ 109,823,219
Interest.................................................................... 9,973,808
Other....................................................................... 362,050
--------------
Total assets............................................................... 3,547,243,846
--------------
LIABILITIES:
Payables and other liabilities:
Shares of capital stock redeemed............................................ 29,590,330
Dividends................................................................... 5,237,092
Transfer and shareholder servicing agent fees............................... 534,261
Service plan fees........................................................... 206,544
Other....................................................................... 448,704
--------------
Total liabilities.......................................................... 36,016,931
--------------
NET ASSETS................................................................... $3,511,226,915
==============
COMPOSITION OF NET ASSETS:
Par value of shares of capital stock......................................... $ 351,106,706
Additional paid-in capital................................................... 3,159,960,353
Accumulated net realized gain on investment transactions..................... 159,856
--------------
NET ASSETS-applicable to 3,511,067,059 shares of capital stock outstanding... $3,511,226,915
==============
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE............... $ 1.00
==============
</TABLE>
See accompanying Notes to Financial Statements.
14
<PAGE>
Statement of Operations For the Six Months Ended June 30, 1997 (Unaudited)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest........................................................................... $ 97,897,308
------------
EXPENSES:
Management fees-Note 3............................................................. 6,569,757
Service plan fees-Note 3........................................................... 3,477,939
Transfer and shareholder servicing agent fees-Note 3............................... 2,157,975
Shareholder reports................................................................ 367,033
Legal and auditing fees............................................................ 25,806
Custodian fees and expenses........................................................ 139,130
Registration and filing fees....................................................... 19,356
Directors' fees and expenses....................................................... 10,831
Other.............................................................................. 8,039
------------
Total expenses..................................................................... 12,775,866
Less assumption of expenses by Centennial Asset Management Corporation-Note 3...... (956,999)
------------
Net expenses....................................................................... 11,818,867
------------
NET INVESTMENT INCOME.............................................................. 86,078,441
NET REALIZED GAIN ON INVESTMENTS................................................... 22,893
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................... $ 86,101,334
============
</TABLE>
See accompanying Notes to Financial Statements.
15
<PAGE>
Statements of Changes in Net Assets
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
--------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income................................................. $ 86,078,441 $ 173,243,313
Net realized gain..................................................... 22,893 2,534
-------------- --------------
Net increase in net assets resulting from operations.................. 86,101,334 173,245,847
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS........................... (86,078,441) (173,245,601)
CAPITAL STOCK TRANSACTIONS:
Net increase (decrease) in net assets resulting from capital stock
transactions-Note 2.................................................. (90,285,048) 77,763,723
-------------- --------------
NET ASSETS:
Total increase (decrease)............................................. (90,262,155) 77,763,969
Beginning of period................................................... 3,601,489,070 3,523,725,101
-------------- --------------
End of period......................................................... $3,511,226,915 $3,601,489,070
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
16
<PAGE>
Financial Highlights
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------
Six Months
Ended June 30,
1997 (Unaudited) 1996 1995 1994 1993 1992
------------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment
operations-net investment
income and net realized gain.................. .02 .05 .05 .04 .03 .03
Dividends and distributions to
shareholders.................................. (.02) (.05) (.05) (.04) (.03) (.03)
--------- ------ ------ ------ ------ ------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ====== ====== ====== ====== ======
TOTAL RETURN, AT
NET ASSET VALUE(1)............................ 2.44% 4.93% 5.47% 3.77% 2.69% 3.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions)........ $ 3,511 $3,602 $3,524 $2,958 $3,589 $4,061
Average net assets (in millions)............... $ 3,546 $3,591 $3,379 $3,378 $3,940 $4,760
Ratios to average net assets:
Net investment income.......................... 4.90%(2) 4.82% 5.32% 3.64% 2.67% 3.50%
Expenses, before voluntary
assumption by the Manager..................... 0.73%(2) 0.68% 0.71% 0.74% 0.74% 0.70%
Expenses, net of voluntary
assumption by the Manager..................... 0.67%(2) 0.67% N/A 0.73% N/A N/A
</TABLE>
1. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Total returns are
not annualized for periods of less than one full year. Total returns
reflect changes in net investment income only.
2. Annualized.
See accompanying Notes to Financial Statements.
17
<PAGE>
Notes to Financial Statements (Unaudited)
Daily Cash Accumulation Fund, Inc.
1. Significant Accounting Policies
Daily Cash Accumulation Fund, Inc. (the Fund) is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund's investment objective is to seek the maximum
current income that is consistent with low capital risk and the maintenance of
liquidity. The Fund seeks to achieve this objective by investing in "money
market" securities meeting specified quality standards. The Fund's investment
adviser is Centennial Asset Management Corporation (the Manager), a subsidiary
of OppenheimerFunds, Inc. (OFI). The following is a summary of significant
accounting policies consistently followed by the Fund.
Investment Valuation-Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
Federal Taxes-The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders. Therefore, no federal
income or excise tax provision is required.
Distributions to Shareholders-The Fund intends to declare dividends from net
investment income each day the New York Stock Exchange is open for business and
pay such dividends monthly. To effect its policy of maintaining a net asset
value of $1.00 per share, the Fund may withhold dividends or make distributions
of net realized gains.
Other-Investment transactions are accounted for on the date the investments are
purchased or sold (trade date). Realized gains and losses on investments are
determined on an identified cost basis, which is the same basis used for
federal income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
18
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
Daily Cash Accumulation Fund, Inc.
2. Capital Stock
The Fund has authorized 15 billion shares of $0.10 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Six Months Ended June 30, 1997 Year Ended December 31, 1996
----------------------------------------- -----------------------------------------
Shares Amount Shares Amount
-------------------- -------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
Sold......................... 3,494,880,002 $ 3,494,880,002 7,263,772,507 $ 7,263,772,507
Dividends and distributions
reinvested................. 79,091,318 79,091,318 170,695,960 170,695,960
Redeemed..................... (3,664,256,368) (3,664,256,368) (7,356,704,744) (7,356,704,744)
---------------- ----------------- ---------------- -----------------
Net increase (decrease)...... (90,285,048) $ (90,285,048) 77,763,723 $ 77,763,723
================ ================= ================ =================
</TABLE>
3. Management Fees and Other Transactions with Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.45% of the first
$500 million of net assets; 0.425% of the next $500 million; 0.40% of the next
$500 million; 0.375% of the next $500 million; 0.35% of the next $500 million;
0.325% of the next $500 million; 0.30% of the next $500 million; 0.275% of the
next $500 million; and 0.25% of net assets in excess of $4 billion.
Independent 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, a related Fund for which the Manager also serves
as investment adviser.
Shareholder Services, Inc. (SSI), a subsidiary of OFI, is the transfer and
shareholder servicing agent for the Fund, and for other registered investment
companies. SSI's total costs of providing such services are allocated ratably
to these companies.
Under an approved plan of distribution, the Fund may expend up to 0.20% of its
net assets annually to reimburse certain securities dealers and other financial
institutions and organizations for costs incurred in distributing Fund shares.
4. Subsequent Event
On June 24, 1997, the Board of Directors approved the reorganization of Daily
Cash Accumulation Fund with and into Centennial Money Market Trust.
Shareholders of Daily Cash Accumulation Fund will be asked to approve a
reorganization whereby shareholders of Daily Cash Accumulation Fund would
receive shares of Centennial Money Market Trust and Daily Cash Accumulation
Fund would be liquidated. If shareholder approval is received, it is expected
that the reorganization will occur on or about November 21, 1997.
19
