<PAGE> 1
DAILY CASH ACCUMULATION FUND, INC.
Officers and Directors
James C. Swain, Chairman and Chief Executive Officer
Bridget A. Macaskill, Director and President
Robert G. Avis, Director
William A. Baker, Director
Charles Conrad, Jr., Director
Jon S. Fossel, Director
Sam Freedman, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
George C. Bowen, Vice President, Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Dorothy G. Warmack, Vice President
Carol E. Wolf, Vice President
Arthur J. Zimmer, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
Investment 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.
This is a copy of a report to shareholders of Daily Cash Accumulation
Fund, Inc. This report must be preceded or accompanied by a
Prospectus of Daily Cash Accumulation Fund, Inc. For material
information concerning the Fund, see the Prospectus.
For shareholder servicing call:
1-800-525-9310 (in U.S.)
303-671-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5143
Denver, CO 80217-5143
RA0140.001.1296 [Recycled Paper Logo] Printed on recycled paper
<PAGE> 2
DEAR SHAREHOLDER:
The second half of 1996 was a period of uncertainty in the fixed income
markets, largely due to investor fears of rapid economic growth and
accelerating inflation. The 30-year Treasury rates rose above 7% in the second
quarter and remained relatively unchanged until the end of the third quarter.
That's when negative investor sentiment that led to the market downturn in June
and July began to subside.
The swing away from inflationary fears seemed complete in October with the
release of economic indicators showing a firm dollar, low inflation and slow
growth. When the Federal Reserve responded to these indicators with another
decision to leave rates alone, it appeared that concerns about rapid growth had
been overblown, and interest rates fell in response. The status quo outcome of
the presential election also aided the decline in rates, and the bond market
experienced one of the most substantial post-election rallies in recent
history. With continued, substainable non-inflationary growth of around 2% to
2.5%, and long-term rates at their lowest levels since April, the economy seems
to have settled into a comfortable path of neither too little nor too much
growth.
This decline in long-term Treasury rates over the past few months has caused
the return on money market instruments to decline marginally, but the positive
inflationary situation has helped to keep yields relatively strong. Money market
fund yields are usually between three and five percentage points less than the
yields on long-term bonds, and typically one percentage point above inflation.
Assuming that the annual inflation rate is about 2.5%, money market yields
would normally be about 3.5%, while longer-term yields might be as high as 5.5%.
However, the difference between money market yields and inflation is currently
greater than this formula would suggest. Part of the reason for this
irregularity is the successful way in which the Federal Reserve Board has
fought inflation.
As we head into 1997, money market funds continue to be a highly liquid
opportunity to earn steady income while protecting principal. This year, money
market funds turned out to be a good investment choice for the income-oriented
investor.
For the twelve months ended December 31, 1996, the Fund's compounded annualized
yield was 4.94%. Without compounding, the corresponding yield was 4.82%. The
seven-day annualized yields with and without compounding on December 31, 1996
were 4.98% and 4.86%, respectively.(1)
<PAGE> 3
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.
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.
January 22, 1997
1. Compounded yields assume reinvestment of dividends. Past performance is
not indicative of future results.
<PAGE> 4
STATEMENT OF INVESTMENTS December 31, 1996
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
--------- -----------
<S> <C> <C>
BANKERS' ACCEPTANCES-0.1%
First National Bank of Boston, 5.30%,
5/2/97 (Cost $4,910,931) ....................... $ 5,000,000 $ 4,910,931
-----------
CERTIFICATES OF DEPOSIT-1.6%
DOMESTIC CERTIFICATES OF DEPOSIT-0.4%
LaSalle National Bank:
5.51%, 4/4/97 ................................ 8,000,000 8,000,000
5.55%, 2/11/97 ............................... 7,000,000 7,000,000
-----------
15,000,000
-----------
YANKEE CERTIFICATES OF DEPOSIT-1.2%
Societe Generale North America, Inc.:
5.45%, 2/10/97 ............................... 8,000,000 8,000,087
5.50%, 4/21/97 ............................... 5,000,000 5,000,000
5.55%, 2/6/97 ................................ 10,000,000 10,000,000
5.62%, 3/25/97 ............................... 8,000,000 8,001,957
5.92%, 9/17/97 ............................... 10,000,000 10,020,031
-----------
41,022,075
-----------
Total Certificates of Deposit (Cost $56,022,075) 56,022,075
-----------
DIRECT BANK OBLIGATIONS-4.2%
ABN Amro Bank Canada, 5.43%, 1/10/97................ 10,000,000 9,986,425
Bayerische Vereinsbank AG, 5.35%, 4/10/97........... 8,150,000 8,030,093
FCC National Bank, 5.55%, 2/14/97................... 10,000,000 10,000,000
First National Bank of Boston:
5.44%, 1/10/97 ................................... 5,000,000 5,000,000
5.44%, 1/13/97 ................................... 5,000,000 5,000,000
5.47%, 2/12/97 ................................... 10,000,000 10,000,000
5.47%, 2/21/97 ................................... 10,000,000 10,000,000
5.47%, 4/3/97 .................................... 7,000,000 7,000,000
5.50%, 3/14/97 ................................... 10,000,000 10,000,000
5.50%, 3/17/97 ................................... 15,000,000 15,000,000
5.50%, 4/4/97 .................................... 5,000,000 5,000,000
Huntington National Bank:...........................
5.35%, 1/2/97 .................................... 10,000,000 10,000,000
5.35%, 1/8/97 .................................... 7,000,000 7,000,000
5.53%, 2/3/97 .................................... 15,000,000 15,001,002
</TABLE>
3
<PAGE> 5
STATEMENT OF INVESTMENTS December 31, 1996 (continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
--------- -----------
<S> <C> <C>
DIRECT BANK OBLIGATIONS-4.2% (CONTINUED)
National Westminster Bank of Canada:
5.36%, 4/7/97 ................................. $ 7,000,000 $ 6,899,946
5.40%, 2/18/97 ................................ 5,000,000 4,964,000
Societe Generale North America, Inc.:
5.30%, 4/11/97 ................................ 5,000,000 4,926,389
5.38%, 2/7/97 ................................. 7,000,000 6,961,294
------------
Total Direct Bank Obligations (Cost $150,769,149) 150,769,149
------------
LETTERS OF CREDIT-6.0%
Bank of America NT & SA, guaranteeing commercial paper of:
Formosa Plastics Corp., USA-Series A, 5.34%, 3/21/97 5,000,000 4,941,408
Hyundai Motor Finance Co., 5.37%, 4/21/97 5,000,000 4,917,958
Bank One, Cleveland, guaranteeing commercial paper of:
Capital One Funding Corp.-Series 1995F, 5.85%, 1/2/97(1) 10,650,000 10,650,000
Capital One Funding Corp.-Series 1995F, 5.85%, 1/2/97(1)(2) 8,900,000 8,900,000
Barclays Bank PLC, guaranteeing commercial paper of:
Banco Bradesco S.A.-Grand Cayman Branch:
Series A, 5.31%, 4/28/97 ............ 11,000,000 10,810,167
Series A, 5.35%, 4/18/97 ............ 5,000,000 4,920,493
Series B, 5.33%, 5/20/97 ............ 5,000,000 4,897,101
Banco Real S.A., Grand Cayman Branch:
Series A, 5.32%, 4/22/97 ............ 5,000,000 4,917,983
Series A, 5.37%, 4/21/97 ............ 10,000,000 9,835,917
Petroleo Brasileiro, S.A.-Petrobras II:
Series C, 5.35%, 4/1/97 ............. 5,000,000 4,933,125
Series C, 5.38%, 4/3/97 ............. 5,000,000 4,931,256
Petroleo Brasileiro, S.A.-Petrobras:
Series A, 5.30%, 5/5/97 ............. 5,000,000 4,908,722
Series A, 5.31%, 5/6/97 ............. 15,000,000 14,723,438
Series A, 5.31%, 5/7/97 ............. 5,000,000 4,907,075
Series A, 5.37%, 4/7/97 ............. 5,000,000 4,928,400
Series B, 5.32%, 6/3/97 ............. 5,000,000 4,886,950
Series B, 5.40%, 4/9/97 ............. 10,000,000 9,853,000
</TABLE>
4
<PAGE> 6
STATEMENT OF INVESTMENTS December 31, 1996 (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- -----------
<S> <C> <C>
LETTERS OF CREDIT-6.0% (CONTINUED)
Bayerische Vereinsbank AG, guaranteeing commercial paper of:
Banco Rio de la Plata S.A.:
Series A, 5.40%, 1/21/97 ............................ $ 5,000,000 $4,985,000
Series A, 5.43%, 1/17/97 ............................ 10,000,000 9,975,867
Series A, 5.40%, 1/22/97 ............................ 5,000,000 4,984,250
Galicia Funding Corp.:
Series A, 5.36%, 3/3/97(3)........................... 5,000,000 4,954,589
Series B, 5.35%, 3/3/97(3)........................... 5,000,000 4,954,674
Series B, 5.45%, 3/4/97(3)........................... 10,000,000 9,907,000
Credit Suisse, guaranteeing commercial paper of:
COSCO (Cayman) Co., Ltd., 5.38%, 3/14/97............. 15,000,000 14,838,600
Societe Generale, guaranteeing commercial paper of:
Girsa Funding Corp., 5.32%, 4/3/97(3)................ 9,000,000 8,877,640
Nacional Financiera, SNC:
Series A, 5.31%, 2/24/97........................... 20,000,000 19,840,700
Series A, 5.44%, 1/8/97............................ 5,000,000 4,994,711
Series A, 5.44%, 1/9/97............................ 5,000,000 4,993,956
Series B, 5.33%, 3/3/97............................ 5,000,000 4,954,843
-----------
Total Letters of Credit (Cost $217,124,823)............ 217,124,823
-----------
SHORT-TERM NOTES-86.7%
AUTOMOTIVE-0.8%
BMW U.S. Capital Corp.:
5.31%, 2/24/97 ................................... 10,000,000 9,920,350
5.32%, 2/20/97 ................................... 20,000,000 19,852,222
-----------
29,772,572
-----------
BANKS-0.7%
Bankers Trust Co., New York, 5.35%, 11/26/97(1)............ 10,000,000 9,993,799
CoreStates Capital Corp.:
5.36%, 6/27/97 .......................................... 5,000,000 4,868,233
5.47%, 7/14/97(1)........................................ 5,000,000 5,000,000
5.70%, 6/27/97(1)........................................ 5,000,000 5,000,000
-----------
24,862,032
-----------
</TABLE>
5
<PAGE> 7
STATEMENT OF INVESTMENTS December 31, 1996 (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
--------- -----------
<S> <C> <C>
BEVERAGES-3.2%
Coca-Cola Enterprises, Inc.:
5.31%, 3/19/97(3) .......................................... $12,000,000 $11,863,453
5.31%, 3/7/97(3) ........................................... 27,000,000 26,739,910
5.32%, 2/26/97(3) .......................................... 15,000,000 14,875,867
5.32%, 2/27/97(3) .......................................... 10,000,000 9,915,767
5.33%, 2/19/97(3) .......................................... 15,000,000 14,891,179
5.34%, 1/31/97(3) .......................................... 17,000,000 16,924,350
5.35%, 3/11/97(3) .......................................... 5,000,000 4,948,729
5.35%, 3/18/97(3) .......................................... 8,000,000 7,909,644
5.35%, 3/24/97(3) .......................................... 7,000,000 6,914,697
-----------
114,983,596
-----------
BROKER/DEALERS-12.5%
CS First Boston, Inc.:
5.31%, 1/30/97 ............................................ 7,000,000 6,970,057
5.31%, 2/20/97 ............................................ 15,000,000 14,889,375
5.33%, 2/13/97(3) ......................................... 25,000,000 24,840,661
5.35%, 2/12/97(3) ......................................... 10,000,000 9,937,642
5.38%, 3/4/97(1)(4) ....................................... 10,000,000 10,000,000
5.58%, 1/21/97(1)(4) ...................................... 10,000,000 10,000,000
Goldman Sachs Group, L.P.:
5.31%, 3/21/97 ............................................ 23,000,000 22,731,992
5.31%, 5/5/97 ............................................. 15,000,000 14,725,650
5.38%, 3/14/97 ............................................ 10,000,000 9,892,400
5.42%, 1/17/97 ............................................ 10,000,000 9,975,911
5.43%, 1/13/97 ............................................ 30,000,000 29,945,700
5.50%, 4/4/97 ............................................. 15,000,000 14,786,875
8.25%, 1/2/97 ............................................. 52,550,000 52,539,173
Merrill Lynch & Co., Inc.:
5.31%, 2/28/97 ............................................ 5,000,000 4,957,225
5.33%, 1/2/97 ............................................. 20,000,000 19,997,036
5.33%, 1/24/97 ............................................ 20,000,000 19,931,894
5.33%, 3/10/97 ............................................ 20,000,000 19,798,644
5.35%, 1/28/97 ............................................ 5,000,000 4,979,937
5.40%, 1/31/97(1) ......................................... 20,000,000 20,000,000
5.40%, 2/10/97 ............................................ 12,000,000 11,928,000
5.42%, 1/23/97 ............................................ 35,000,000 34,884,897
5.42%, 12/19/97(1) ........................................ 15,000,000 14,999,534
5.43%, 10/24/97(1) ........................................ 10,000,000 9,998,378
5.44%, 1/21/97 ............................................ 10,000,000 9,969,778
</TABLE>
6
<PAGE> 8
STATEMENT OF INVESTMENTS December 31, 1996 (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
--------- -----------
<S> <C> <C>
BROKER/DEALERS-12.5% (CONTINUED)
Morgan Stanley Group, Inc.:
5.26%, 6/27/97(1) ...................................... $36,815,000 $ 36,815,000
5.41%, 2/3/97 .......................................... 10,000,000 9,950,408
-----------
449,446,167
-----------
BUILDING MATERIALS-0.1%
Compagnie de Saint-Gobain, 5.38%, 4/23/97.................. 5,000,000 4,916,311
-----------
CHEMICALS-0.2%
Monsanto Co., 5.30%, 1/27/97(3)............................ 6,900,000 6,873,588
-----------
COMMERCIAL FINANCE-12.3%
CIT Group Holdings, Inc.:
5.31%, 1/24/97 .......................................... 15,000,000 14,949,112
5.33%, 11/20/97(1) ...................................... 15,000,000 14,989,942
5.35%, 5/1/97(1) ........................................ 10,000,000 9,996,244
5.35%, 6/11/97(1) ....................................... 10,000,000 9,994,762
5.37%, 9/17/97(1) ....................................... 20,000,000 19,989,710
5.67%, 3/1/98(1) ........................................ 38,500,000 38,500,000
Countrywide Home Loans:
5.33%, 1/23/97 .......................................... 24,000,000 23,921,827
5.33%, 2/19/97 .......................................... 5,000,000 4,963,726
5.33%, 3/3/97 ........................................... 5,000,000 4,954,843
5.34%, 1/8/97 ........................................... 9,000,000 8,990,655
5.34%, 3/12/97 .......................................... 5,000,000 4,948,083
5.36%, 3/5/97 ........................................... 16,000,000 15,849,920
5.37%, 3/4/97 ........................................... 10,000,000 9,907,517
FINOVA Capital Corp.:
5.37%, 2/18/97 .......................................... 3,000,000 2,978,520
5.37%, 2/24/97 .......................................... 10,000,000 9,919,450
5.37%, 2/28/97 .......................................... 7,000,000 6,939,326
5.38%, 1/7/97 ........................................... 8,000,000 7,992,827
5.38%, 2/20/97 .......................................... 5,000,000 4,962,639
5.40%, 1/15/97 .......................................... 5,000,000 4,989,500
5.40%, 2/27/97 .......................................... 32,000,000 31,727,682
5.43%, 2/26/97 .......................................... 20,000,000 19,831,067
5.49%, 2/5/97 ........................................... 5,000,000 4,973,312
5.53%, 1/24/97 .......................................... 5,000,000 4,982,335
5.68%, 1/17/97 .......................................... 3,000,000 2,992,427
6.06%, 2/21/97(1) ....................................... 15,000,000 15,000,000
</TABLE>
7
<PAGE> 9
STATEMENT OF INVESTMENTS December 31, 1996 (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
--------- -----------
<S> <C> <C>
COMMERCIAL FINANCE-12.3% (CONTINUED)
Heller Financial, Inc.:
5.41%, 3/17/97 ............................................. $20,000,000 $19,774,479
5.42%, 2/6/97 .............................................. 7,000,000 6,962,060
5.43%, 1/14/97 ............................................. 15,000,000 14,970,587
5.45%, 3/20/97 ............................................. 5,000,000 4,940,958
5.45%, 3/21/97 ............................................. 2,000,000 1,976,081
5.46%, 10/1/97(1) .......................................... 20,000,000 19,997,008
5.46%, 10/10/97(1) ......................................... 13,000,000 12,997,991
5.55%, 4/10/97 ............................................. 7,000,000 6,893,162
5.55%, 4/2/97 .............................................. 9,500,000 9,366,723
5.59%, 12/18/97(1) ......................................... 15,000,000 15,000,000
5.66%, 1/15/97 ............................................. 10,000,000 10,000,518
5.69%, 3/28/97(1) .......................................... 20,000,000 20,001,439
-----------
442,126,432
-----------
COMPUTER SOFTWARE-0.3%
First Data Corp.:
5.37%, 6/10/97 ............................................ 5,000,000 4,880,667
5.40%, 2/25/97 ............................................ 5,000,000 4,958,750
-----------
9,839,417
-----------
CONGLOMERATES-1.0%
Mitsubishi International Corp.:
5.34%, 1/8/97 ............................................... 9,500,000 9,490,136
5.43%, 2/7/97 ............................................... 19,000,000 18,893,964
5.44%, 2/14/97 .............................................. 7,800,000 7,748,139
----------
36,132,239
-----------
CONSUMER FINANCE-3.0%
American Express Corp., 5.32%, 1/3/97 ....................... 15,000,000 14,995,567
Island Finance Puerto Rico, Inc.:
5.32%, 3/11/97 .............................................. 13,700,000 13,560,306
5.34%, 3/24/97 .............................................. 5,100,000 5,037,967
5.36%, 1/15/97 .............................................. 8,000,000 7,983,324
5.39%, 3/25/97 .............................................. 16,500,000 16,294,955
5.44%, 3/20/97 .............................................. 10,000,000 9,882,133
</TABLE>
8
<PAGE> 10
STATEMENT OF INVESTMENTS December 31, 1996 (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
--------- -----------
<S> <C> <C>
CONSUMER FINANCE-3.0% (CONTINUED)
Sears Roebuck Acceptance Corp.:
5.31%, 3/3/97 ........................................... $25,000,000 $ 24,775,063
5.32%, 3/31/97 .......................................... 9,000,000 8,881,630
5.43%, 1/16/97 .......................................... 5,000,000 4,988,688
------------
106,399,633
------------
DIVERSIFIED FINANCIAL-14.5%
Associates Corp. of North America, 7.28%, 1/2/97 .......... 75,000,000 74,984,833
Ford Motor Credit Co.:
5.32%, 1/10/97 .......................................... 15,000,000 14,980,050
5.32%, 1/6/97 ........................................... 24,300,000 24,282,045
5.32%, 1/8/97 ........................................... 13,600,000 13,585,932
5.32%, 1/9/97 ........................................... 15,000,000 14,982,267
5.40%, 1/2/97 ........................................... 75,000,000 74,985,167
5.57%, 5/12/97(1) ....................................... 15,000,000 15,001,935
General Electric Capital Corp.:
5.31%, 1/15/97 .......................................... 15,000,000 14,969,025
5.50%, 1/31/97 .......................................... 5,000,000 4,977,083
General Electric Capital Services, 7.12%, 1/2/97 .......... 78,000,000 77,984,573
General Motors Acceptance Corp.:
5.35%, 1/8/97 ........................................... 21,000,000 20,978,154
5.35%, 3/3/97 ........................................... 5,000,000 4,954,674
5.38%, 2/18/97 .......................................... 10,000,000 9,928,267
5.41%, 4/10/97 .......................................... 5,000,000 5,058,018
5.41%, 4/7/97 ........................................... 27,975,000 27,569,817
5.45%, 1/16/97 .......................................... 10,000,000 9,977,292
5.45%, 2/12/97 .......................................... 13,000,000 12,917,342
5.45%, 2/12/97 .......................................... 17,000,000 16,891,908
5.45%, 2/4/97 ........................................... 8,900,000 8,854,190
5.45%, 2/6/97 ........................................... 10,000,000 9,945,500
5.45%, 4/21/97(1) ....................................... 15,000,000 14,991,777
5.47%, 2/14/97 .......................................... 18,500,000 18,376,317
5.48%, 3/11/97 .......................................... 5,000,000 4,947,483
5.48%, 3/26/97 .......................................... 5,025,000 4,960,747
Household Finance Corp., 5.30%, 2/24/97.................... 15,000,000 14,880,750
Transamerica Finance Corp., 5.33%, 3/17/97 ................ 5,000,000 4,944,479
----------
520,909,625
-----------
</TABLE>
9
<PAGE> 11
STATEMENT OF INVESTMENTS December 31, 1996 (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
--------- ---------
<S> <C> <C>
ELECTRICAL EQUIPMENT-0.4%
Xerox Corp., 5.30%, 1/10/97 ............................. $15,000,000 $14,980,125
-----------
ELECTRONICS-2.3%
Avnet, Inc., 5.34%, 3/14/97 .............................. 5,000,000 4,946,600
Mitsubishi Electric Finance America, Inc.:
5.32%, 2/21/97(3) ...................................... 10,000,000 9,924,633
5.33%, 1/30/97(3) ...................................... 16,285,000 16,214,929
5.35%, 1/15/97(3) ...................................... 10,000,000 9,979,194
5.36%, 2/5/97(3) ....................................... 25,000,000 24,869,722
5.37%, 1/3/97(3) ....................................... 16,734,000 16,729,008
-----------
82,664,086
-----------
ENVIRONMENTAL-0.1%
WMX Technologies, Inc., 5.36%, 4/18/97(3).................. 5,000,000 4,920,344
-----------
HEALTHCARE/DRUGS-0.1%
Sandoz Corp., 5.30%, 1/23/97(3)............................ 5,000,000 4,983,806
-----------
HEALTHCARE/SUPPLIES & SERVICES-0.5%
American Home Products, 5.33%, 1/10/97(3)................. 10,000,000 9,986,675
Sherwood Medical Co., 5.32%, 1/24/97(3).................... 7,000,000 6,976,208
-----------
16,962,883
-----------
INDUSTRIAL SERVICES-0.4%
Atlas Copco AB, 5.30%, 2/24/97(3)......................... 5,000,000 4,960,250
PHH Corp., 5.79%, 3/26/97(1).............................. 10,000,000 9,998,653
-----------
14,958,903
-----------
INSURANCE-6.8%
Allstate Life Insurance Co., 5.38%, 1/3/97(1)............. 10,000,000 10,000,000
General American Life Insurance Co., 5.58%, 1/3/97(1)..... 30,000,000 30,000,000
Jackson National Life:
5.39%, 1/3/97(1) ....................................... 15,000,000 15,000,000
5.40%, 1/3/97(1) ....................................... 30,000,000 30,000,000
Pacific Mutual Life Insurance Co., 5.57%, 1/2/97(1)(4).....50,000,000 50,000,000
Protective Life Insurance Co., 5.52%, 1/26/97(1)(4)........20,000,000 20,000,000
</TABLE>
10
<PAGE> 12
STATEMENT OF INVESTMENTS December 31, 1996 (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
--------- -----------
<S> <C> <C>
INSURANCE-6.8% (CONTINUED)
TransAmerica Life Insurance & Annuity Co.:
5.38%, 10/15/97(1) .................................. $25,000,000 $ 25,000,000
5.38%, 8/7/97(1)(4) ................................. 25,000,000 25,000,000
5.38%, 9/30/97(1) ................................... 20,000,000 20,000,000
TransAmerica Occidental Life, 5.38%, 9/29/97(1)......... 20,000,000 20,000,000
-----------
245,000,000
-----------
LEASING & FACTORING-0.9%
International Lease Finance Corp.:
5.30%, 3/7/97 ........................................ 10,000,000 9,904,306
5.33%, 2/3/97 ........................................ 13,775,000 13,707,698
5.33%, 2/7/97 ........................................ 10,000,000 9,945,219
-----------
33,557,223
-----------
NONDURABLE HOUSEHOLD GOODS-0.1%
Newell Co., 5.33%, 3/7/97(3)............................. 5,000,000 4,951,882
-----------
OIL-INTEGRATED-0.3%
Repsol International Finance, 5.35%, 3/28/97............. 10,000,000 9,872,194
-----------
SAVINGS & LOANS-0.2%
First Bank FSB, 5.58%, 8/29/97(1)........................ 7,000,000 6,999,550
-----------
SPECIAL PURPOSE FINANCIAL-23.1%
Asset Backed Capital Finance, Inc.:
5.45%, 3/12/97(3) 15,000,000 14,841,042
5.48%, 12/15/97(1)(4) ................................. 15,000,000 14,994,921
Asset-Securitization Cooperative:
5.31%, 1/29/97(3) ..................................... 10,000,000 9,958,700
5.31%, 2/18/97(3) ..................................... 15,000,000 14,893,867
5.31%, 2/26/97(3) ..................................... 25,000,000 24,793,500
5.33%, 3/11/97(3) ..................................... 7,000,000 6,928,489
5.33%, 3/17/97(3) ..................................... 10,000,000 9,888,958
5.34%, 3/18/97(3) ..................................... 14,200,000 14,039,919
5.35%, 3/19/97(3) ..................................... 10,000,000 9,885,569
</TABLE>
11
<PAGE> 13
STATEMENT OF INVESTMENTS December 31, 1996 (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
--------- -----------
<S> <C> <C>
SPECIAL PURPOSE FINANCIAL-23.1% (CONTINUED)
Beta Finance, Inc.:
5.32%, 5/12/97(1)(3) ............................................... $15,000,000 $15,001,041
5.35%, 3/17/97(3) .................................................. 10,000,000 9,888,542
5.35%, 4/17/97(3) .................................................. 15,000,000 14,763,708
Cooperative Association of Tractor Dealers, Inc., 5.50%, 2/4/97 ...... 8,200,000 8,157,406
CXC, Inc.:
5.31%, 2/25/97(3) .................................................. 15,000,000 14,878,313
5.32%, 1/7/97(3) ................................................... 15,000,000 14,986,700
5.32%, 3/12/97(3) .................................................. 10,000,000 9,896,556
5.33%, 1/8/97(3) ................................................... 20,000,000 19,979,272
5.35%, 1/16/97(3) .................................................. 5,000,000 4,988,854
5.35%, 2/5/97(3) ................................................... 25,000,000 24,869,965
Falcon Asset Securitization Corp.:
5.30%, 2/25/97(3) .................................................. 15,000,000 14,878,542
5.32%, 1/13/97(3) .................................................. 21,000,000 20,962,760
5.33%, 1/7/97(3) ................................................... 16,000,000 15,985,787
First Deposit Master Trust 1993-3:
5.32%, 1/24/97(3) .................................................. 5,000,000 4,983,006
5.32%, 2/24/97(3) .................................................. 12,000,000 11,904,240
5.32%, 2/26/97(3) .................................................. 5,900,000 5,851,174
5.32%, 2/27/97(3) .................................................. 17,000,000 16,856,803
5.35%, 1/21/97(3) .................................................. 9,200,000 9,172,656
5.35%, 3/20/97(3) .................................................. 5,000,000 4,942,042
5.65%, 1/9/97(3) ................................................... 5,000,000 4,993,944
Fleet Funding Corp.:
5.32%, 1/9/97(3) ................................................... 27,026,000 26,994,049
5.45%, 1/17/97(3) .................................................. 25,000,000 24,939,444
New Center Asset Trust:
5.35%, 4/1/97 ...................................................... 15,000,000 14,799,375
5.40%, 2/6/97 ...................................................... 15,000,000 14,919,000
5.43%, 1/29/97 ..................................................... 25,000,000 24,894,417
7.30%, 1/2/97 ...................................................... 100,000,000 99,979,722
RACERS Series 1996-MM-12-3, 5.59%, 12/15/97(1)(4) .................... 15,000,000 15,000,000
</TABLE>
12
<PAGE> 14
STATEMENT OF INVESTMENTS DECEMBER 31, 1996 (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
--------- -----------
<S> <C> <C>
SPECIAL PURPOSE FINANCIAL-23.1% (CONTINUED)
Sheffield Receivables Corp.:
5.32%, 1/16/97 ................................................... $ 7,450,000 $ 7,433,486
5.32%, 1/16/97(3) ................................................ 10,000,000 9,977,833
5.32%, 1/6/97(3) ................................................. 26,160,000 26,140,648
Short Term Card Account Trust 1995-1, Class A1, 5.61%, 1/15/97(1)(4) 15,000,000 15,000,000
Sigma Finance, Inc.:
5.30%, 5/16/97(3) ................................................ 5,000,000 4,900,625
5.31%, 5/12/97(3) ................................................ 10,000,000 9,806,775
5.31%, 5/14/97(3) ................................................ 6,500,000 6,372,486
5.31%, 5/19/97(3) ................................................ 5,000,000 4,898,225
5.32%, 5/6/97(3) ................................................. 5,000,000 4,907,639
5.33%, 3/3/97(3) ................................................. 5,000,000 4,954,843
5.37%, 4/15/97(3) ................................................ 15,000,000 14,767,300
5.37%, 4/28/97(3) ................................................ 21,000,000 20,634,668
5.37%, 4/8/97(3) ................................................. 14,000,000 13,797,432
5.38%, 1/3/97(3) ................................................. 10,000,000 9,997,011
5.38%, 4/9/97(3) ................................................. 24,000,000 23,649,024
5.44%, 2/28/97(3) ................................................ 10,000,000 9,912,356
5.45%, 1/24/97(3) ................................................ 5,000,000 4,982,590
5.45%, 2/19/97(3) ................................................ 15,000,000 14,888,729
SMM Trust:
1996-B, 5.42%, 8/4/97(4) ......................................... 10,000,000 10,000,000
1996-I, 5.71%, 5/29/97(1)(4) ..................................... 10,000,000 10,000,000
1996-V, 5.98%, 3/26/97(4) ........................................ 10,000,000 10,000,000
TIERS Series DCMT 1996-A, 5.64%, 10/15/97(1)(4)............ ........ 5,000,000 5,000,000
-----------
831,713,953
-----------
TELECOMMUNICATIONS-TECHNOLOGY-2.9%
GTE Corp., 5.48%, 4/1/97 ............................................ 10,000,000 9,863,000
NYNEX Corp.:
5.32%, 2/21/97 .................................................... 8,000,000 7,939,707
5.33%, 2/18/97 .................................................... 5,000,000 4,964,467
5.34%, 1/27/97 .................................................... 5,000,000 4,980,717
5.34%, 3/6/97 ..................................................... 10,000,000 9,905,067
5.34%, 3/7/97 ..................................................... 7,000,000 6,932,508
</TABLE>
13
<PAGE> 15
STATEMENT OF INVESTMENTS December 31, 1996 (Continued)
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
--------- -----------
<S> <C> <C>
TELECOMMUNICATIONS-TECHNOLOGY-2.9% (CONTINUED)
5.35%, 1/10/97 ........................................................... $20,000,000 $ 19,973,250
5.35%, 1/24/97 ........................................................... 10,000,000 9,965,819
5.35%, 3/5/97 ............................................................ 5,000,000 4,953,363
5.42%, 1/13/97 ........................................................... 15,000,000 14,972,900
5.42%, 1/17/97 ........................................................... 9,400,000 9,377,607
--------------
103,828,405
--------------
Total Short-Term Notes (Cost $3,121,654,966)................................ 3,121,654,966
--------------
U.S. GOVERNMENT AGENCIES-0.9%
Federal Home Loan Bank, 5.68%, 8/1/97 (Cost $33,982,579)(1) ................ 34,000,000 33,982,579
--------------
FOREIGN GOVERNMENT OBLIGATIONS-1.0%
Bayerische Landesbank Girozentrale, 5.07%, 7/29/97(1) ...................... 15,000,000 15,000,000
Westdeutsche Landesbank Girozentrale, guaranteeing commercial paper of:
Unibanco-Uniao de Bancos Brasileiros SA-Grand Cayman-Series A, 5.37%, 4/7/97 5,000,000 4,928,400
Comision Federal de Electricidad:
Series A, 5.31%, 2/18/97 ............................................... 10,000,000 9,929,200
Series A, 5.36%, 3/11/97 ............................................... 5,000,000 4,948,633
--------------
Total Foreign Government Obligations (Cost $34,806,233).... 34,806,233
--------------
Total Investments, at Value................................................. 100.5% 3,619,270,756
Liabilities in Excess of Other Assets....................................... (0.5) (17,781,686)
----- --------------
Net Assets.................................................................. 100.0% $3,601,489,070
===== ==============
</TABLE>
14
<PAGE> 16
STATEMENT OF INVESTMENTS December 31, 1996 (Continued)
Daily Cash Accumulation Fund, Inc.
Short-term notes, 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 December 31, 1996. This instrument
may also have a demand feature which allows the recovery of principal at any
time, or at specified intervals not exceeding one year, on up to 30 days'
notice. Maturity date shown represents effective maturity based on variable
rate and, if applicable, demand feature.
2. Put obligation redeemable at full face value on the date reported.
3. Restricted securities, including those issued in exempt transactions without
registration under the Securities Act of 1933 (the Act), amounting to
$881,361,667, or 24.47% of the Fund's net assets, have been determined to be
liquid pursuant to guidelines adopted by the Board of Directors.
4. 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 $194,994,921, or 5.41% 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.
See accompanying Notes to Financial Statements.
15
<PAGE> 17
STATEMENT OF ASSETS AND LIABILITIES December 31, 1996
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments, at value-see accompanying statement ............. $3,619,270,756
Cash ......................................................... 4,025,043
Receivables:
Interest ................................................... 7,239,494
Shares of capital stock sold ............................... 435,693
Other ........................................................ 71,879
--------------
Total assets ............................................. 3,631,042,865
--------------
LIABILITIES:
Payables and other liabilities:
Shares of capital stock redeemed ........................... 28,952,775
Service plan fees .......................................... 235,143
Dividends .................................................. 8,792
Directors' fees ............................................ 4,452
Other ........................................................ 352,633
--------------
Total liabilities .......................................... 29,553,795
--------------
NET ASSETS ................................................... $3,601,489,070
==============
COMPOSITION OF NET ASSETS:
Par value of shares of capital stock ......................... $ 360,135,211
Additional paid-in capital ................................... 3,241,216,896
Accumulated net realized gain on investment transactions ..... 136,963
--------------
NET ASSETS-applicable to 3,601,352,108 shares of capital
stock outstanding .......................................... $3,601,489,070
==============
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE
PER SHARE .................................................. $1.00
</TABLE>
See accompanying Notes to Financial Statements.
16
<PAGE> 18
STATEMENT OF OPERATIONS For the Year Ended December 31, 1996
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME-Interest ............................................................. $ 197,327,796
-------------
EXPENSES:
Management fees-Note 3 ................................................................. 13,374,834
Service plan fees-Note 3 ............................................................... 7,123,026
Transfer and shareholder servicing agent fees-Note 3 ................................... 2,910,657
Custodian fees and expenses ............................................................ 384,166
Registration and filing fees ........................................................... 342,496
Shareholder reports .................................................................... 273,627
Legal and auditing fees ................................................................ 45,581
Directors' fees and expenses ........................................................... 30,738
Insurance expenses ..................................................................... 29,160
Other .................................................................................. 11,999
-------------
Total expenses ....................................................................... 24,526,284
Less reimbursement of expenses by Centennial Asset Management Corporation-Note 3 ..... (441,801)
-------------
Net expenses ......................................................................... 24,084,483
-------------
NET INVESTMENT INCOME .................................................................. 173,243,313
NET REALIZED GAIN ON INVESTMENTS ....................................................... 2,534
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................... $ 173,245,847
=============
</TABLE>
See accompanying Notes to Financial Statements.
17
<PAGE> 19
STATEMENTS OF CHANGES IN NET ASSETS
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Year Ended December 31,
1996 1995
--------------- ---------------
OPERATIONS:
<S> <C> <C>
Net investment income ................................. $ 173,243,313 $ 179,893,318
Net realized gain ..................................... 2,534 664,800
--------------- ---------------
Net increase in net assets resulting from operations .. 173,245,847 180,558,118
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS ........... (173,245,601) (180,522,108)
CAPITAL STOCK TRANSACTIONS:
Net increase in net assets resulting from capital stock
transactions-Note 2 ................................. 77,763,723 565,456,928
--------------- ---------------
NET ASSETS:
Total increase ........................................ 77,763,969 565,492,938
Beginning of period ................................... 3,523,725,101 2,958,232,163
--------------- ---------------
End of period ......................................... $ 3,601,489,070 $ 3,523,725,101
=============== ===============
</TABLE>
See accompanying Notes to Financial Statements.
18
<PAGE> 20
FINANCIAL HIGHLIGHTS
Daily Cash Accumulation Fund, Inc.
<TABLE>
<CAPTION>
Year Ended December 31,
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <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
Income from investment
operations-net investment
income and net realized gain ................ .05 .05 .04 .03 .03
Dividends and distributions to shareholders ... (.05) (.05) (.04) (.03) (.03)
----- ----- ----- ----- -----
Net asset value, end of period ................ $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
TOTAL RETURN, AT
NET ASSET VALUE(1) .......................... 4.93% 5.47% 3.77% 2.69% 3.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) ....... $3,602 $3,524 $2,958 $3,589 $4,061
Average net assets (in millions) .............. $3,591 $3,379 $3,378 $3,940 $4,760
RATIOS TO AVERAGE NET ASSETS:
Net investment income ......................... 4.82% 5.32% 3.64% 2.67% 3.50%
Expenses, before voluntary reimbursement
by the Manager .............................. 0.68% 0.71% 0.74% 0.74% 0.70%
Expenses, net of voluntary reimbursement
by the Manager .............................. 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.
See accompanying Notes to Financial Statements.
19
<PAGE> 21
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 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.
20
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS (Continued)
Daily Cash Accumulation Fund, Inc.
2. CAPITAL STOCK
The Fund has authorized 15,000,000,000 shares of $0.10 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Year Ended December 31, 1996 Year Ended December 31, 1995
------------------------------------ ------------------------------------
Shares Amount Shares Amount
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold ...................... 7,263,772,507 $ 7,263,772,507 7,320,626,109 $ 7,320,626,109
Dividends and distributions
reinvested ................ 170,695,960 170,695,960 177,673,219 177,673,219
Redeemed .................. (7,356,704,744) (7,356,704,744) (6,932,842,400) (6,932,842,400)
-------------- --------------- -------------- ---------------
Net increase .............. 77,763,723 $ 77,763,723 565,456,928 $ 565,456,928
============== =============== ============== ===============
</TABLE>
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.45% on the first
$500 million of average annual net assets with a reduction of 0.025% on each
$500 million thereafter, to 0.25% on net assets in excess of $4 billion. The
Manager has agreed to reimburse the Fund if aggregate expenses (with specified
exceptions) exceed the most stringent applicable regulatory limit on Fund
expenses.
Independently of the investment advisory agreement with the Fund, effective
December 1, 1994, the Manager has voluntarily agreed to assume the Fund's
expenses to the level needed to enable the Fund's seven-day yield (computed in
accordance with procedures specified pursuant to regulations adopted under the
Investment Company Act of 1940) to at least equal the seven-day yield of
Centennial Money Market Trust, 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.
21
<PAGE> 23
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, 1996, the related statement of operations for the year then ended,
the statements of changes in net assets for the years ended December 31, 1996
and 1995, and the financial highlights for the period January 1, 1992 to
December 31, 1996. 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, 1996 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, 1996, the results of its operations,
the changes in its net assets, and the financial highlights for the respective
stated periods, in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
January 22, 1997
22
<PAGE> 24
FEDERAL INCOME TAX INFORMATION (Unaudited)
Daily Cash Accumulation Fund, Inc.
In early 1997, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1996. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal year ended December 31,
1996 are eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax adviser for specific guidance.
23
