<PAGE>
CASH ACCUMULATION TRUST
2187 Atlantic Street, Stamford, CT 06902
November 1, 1996
Dear Fellow Shareholder:
We're pleased to report that the Cash Accumulation Trust continues to meet
its objective of providing current income, to the extent consistent with
preservation of capital and liquidity. As of September 30, 1996, the Fund's
7-day yield was 4.72%. This is slightly higher than six months ago, but lower
than its 7-day yield of 5.15% at the end of September, 1995. The Fund's average
maturity was 19 days, relatively unchanged from six months ago.
Given this year's stock and bond market volatility, it's apparent that money
market funds continue to play an important role in an investor's diversified
portfolio. They offer the stability and liquidity that can help add balance to
investments in stocks and bonds. In addition, they can serve as a temporary
"parking place" until a longer-term investment choice is made.
Of course, it's important to note that money market funds are neither
insured nor guaranteed by the U.S. Government, and there can be no assurance
that the Fund will be able to maintain a stable net asset value of $1.00 per
share.
As always, we appreciate your support and we look forward to being a part of
your financial future for years to come.
Sincerely,
[SIG]
Robert A. Prindiville
President
1
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1996
<TABLE>
<S> <C>
ASSETS
Investments, at amortized cost (cost $659,021,567) (Note
1)..................................................... $659,021,567
Cash.................................................... 76,516
Receivable for Fund shares sold......................... 16,229,201
Other................................................... 120,589
----------------
Total assets.................................... 675,447,873
----------------
LIABILITIES
Payables and other liabilities:
Fund shares redeemed.................................. 21,529,021
Dividends............................................. 922,830
Management fees (Note 3).............................. 225,004
Shareholder communications............................ 110,561
Trustees' fees........................................ 77,521
Transfer and dividend disbursing agent fees........... 54,054
Distribution fees (Note 4)............................ 53,689
Other................................................. 147,762
----------------
Total liabilities............................... 23,120,442
----------------
NET ASSETS.................................................. $652,327,431
----------------
----------------
NET ASSET VALUE, REDEMPTION VALUE AND OFFERING PRICE PER
SHARE
($652,327,431 DIVIDED BY 652,327,431 shares)............. $1.00
----------------
----------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1996
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest and discount earned........................ $ 33,807,078
----------------
EXPENSES
Management fees (Note 3)............................ 2,560,734
Distribution fees (Note 4).......................... 609,136
Transfer and dividend disbursing agent fees......... 360,560
Legal and auditing fees............................. 230,923
Trustees' fees and expenses (Note 3)................ 127,614
Registration and filing fees........................ 122,547
Shareholder communications.......................... 95,299
Insurance expenses.................................. 61,776
Custodian fees and expenses......................... 35,058
----------------
Total expenses.................................. 4,203,647
----------------
NET INVESTMENT INCOME AND NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS................................. $ 29,603,431
----------------
----------------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
-------------------------------
1996 1995
-------------- ---------------
<S> <C> <C>
OPERATIONS
Net investment income and net increase in net assets resulting from
operations................................................................ $ 29,603,431 $ 35,922,653
-------------- ---------------
DIVIDENDS TO SHAREHOLDERS....................................................... (29,603,431) (35,922,653)
-------------- ---------------
BENEFICIAL INTEREST TRANSACTIONS
Net decrease in net assets resulting from beneficial interest transactions
(Note 2).................................................................. (32,900,860) (138,114,232)
-------------- ---------------
Net decrease in net assets.................................................. (32,900,860) (138,114,232)
NET ASSETS
Beginning of period......................................................... 685,228,291 823,342,523
-------------- ---------------
End of period............................................................... $ 652,327,431 $ 685,228,291
-------------- ---------------
-------------- ---------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
- ----------- ------------
<C> <S> <C>
SHORT-TERM NOTES -- 101.0%
BANKS -- 11.7%
Government Development Bank for Puerto Rico:
$11,500,000 5.29%, 10/8/96...................................... $ 11,488,171
5,000,000 5.35%, 10/2/96...................................... 4,999,257
7,600,000 5.35%, 10/7/96...................................... 7,593,223
5,000,000 5.40%, 10/9/96...................................... 4,994,000
12,526,000 Matterhorn Capital Corp., 5.34%, 10/21/96........... 12,488,840
3,000,000 Oesterreichische Kontrollbank AG, 5.40%, 11/22/96... 2,976,600
12,100,000 UBS Finance (DE) Inc., 5.33%, 10/3/96............... 12,096,417
U.S. Financial, Inc., guaranteed by Commerzbank AG:
10,000,000 5.34%, 10/21/96..................................... 9,970,333
9,865,000 5.40%, 11/12/96..................................... 9,802,850
------------
76,409,691
------------
BEVERAGES -- 4.3%
Bass Finance (C.I.) Ltd., guaranteed by Bass PLC:
10,000,000 5.32%, 11/26/96..................................... 9,917,244
18,600,000 5.33%, 12/10/96..................................... 18,407,232
------------
28,324,476
------------
BROKER/DEALERS -- 14.2%
Bear Stearns & Co., Inc.:
7,000,000 5.35%, 10/18/96..................................... 6,982,315
15,000,000 5.37%, 10/23/96..................................... 14,950,775
10,000,000 5.40%, 11/4/96...................................... 9,949,000
Goldman Sachs Group, L.P.:
10,000,000 5.37%, 10/4/96...................................... 9,995,525
10,000,000 5.37%, 10/8/96...................................... 9,989,558
10,000,000 5.40%, 11/7/96...................................... 9,944,500
Merrill Lynch & Co., Inc.:
10,000,000 5.28%, 10/9/96...................................... 9,988,267
3,700,000 5.31%, 10/7/96...................................... 3,696,726
17,000,000 5.41%, 10/31/96..................................... 16,923,358
------------
92,420,024
------------
</TABLE>
4
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS -- (CONTINUED)
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
- ----------- ------------
SHORT-TERM NOTES -- (CONTINUED)
<C> <S> <C>
BUILDING MATERIALS -- 3.2%
Redland Finance, Inc.:
$10,000,000 5.28%, 10/4/96...................................... $ 9,995,600
11,100,000 5.35%, 10/10/96..................................... 11,085,154
------------
21,080,754
------------
CHEMICALS -- 2.3%
15,000,000 Dupont (E.I.) DeNemours & Co., 5.33%, 10/29/96...... 14,937,817
------------
COMMERCIAL FINANCE -- 12.6%
APRECO, Inc.:
10,000,000 5.30%, 10/15/96..................................... 9,979,389
10,000,000 5.33%, 10/21/96..................................... 9,970,389
CIESCO L.P.:
10,000,000 5.33%, 10/25/96..................................... 9,964,467
20,000,000 5.40%, 10/1/96...................................... 20,000,000
Sheffield Receivables Corp.:
10,000,000 5.37%, 10/7/96...................................... 9,991,050
12,000,000 5.37%, 10/15/96..................................... 11,974,940
10,000,000 5.40%, 10/21/96..................................... 9,970,000
------------
81,850,235
------------
CONGLOMERATES -- 1.7%
10,800,000 CSR Finance Ltd., guaranteed by CSR Ltd., 5.32%,
11/13/96.......................................... 10,731,372
------------
CONSUMER FINANCE -- 14.8%
CSW Credit, Inc.:
3,200,000 5.27%, 10/9/96...................................... 3,196,252
8,000,000 5.33%, 10/24/96..................................... 7,972,758
6,000,000 5.33%, 11/7/96...................................... 5,967,132
4,300,000 5.35%, 10/22/96..................................... 4,286,580
4,800,000 5.37%, 10/25/96..................................... 4,782,816
5,000,000 5.43%, 10/22/96..................................... 4,984,163
15,300,000 Dean Witter, Discover & Co., 5.28%, 10/3/96......... 15,295,512
Student Loan Finance Corp.:
10,000,000 5.29%, 10/21/96..................................... 9,970,611
9,700,000 5.31%, 11/1/96...................................... 9,655,647
9,800,000 5.45%, 10/1/96...................................... 9,800,000
</TABLE>
5
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS -- (CONTINUED)
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
- ----------- ------------
SHORT-TERM NOTES -- (CONTINUED)
<C> <S> <C>
US Central Credit Union:
$ 8,600,000 5.32%, 10/17/96..................................... $ 8,579,666
4,400,000 5.33%, 10/17/96..................................... 4,389,577
7,800,000 5.34%, 10/3/96...................................... 7,797,686
------------
96,678,400
------------
DIVERSIFIED FINANCIAL -- 1.3%
8,478,000 General Electric Capital Corp., 5.35%, 10/28/96..... 8,443,982
------------
DRUG WHOLESALERS -- 1.5%
10,000,000 SmithKline Beecham Corp., 5.35%, 10/23/96........... 9,967,306
------------
ELECTRIC UTILITIES -- 3.4%
National Rural Utilities Cooperative Finance Corp.:
7,200,000 5.26%, 10/28/96..................................... 7,171,596
5,000,000 5.36%, 11/1/96...................................... 4,976,922
10,000,000 5.36%, 11/5/96...................................... 9,947,889
------------
22,096,407
------------
LEASING & FACTORING -- 4.7%
PHH Corp.:
8,000,000 5.32%, 10/24/96..................................... 7,972,809
5,000,000 5.35%, 10/9/96...................................... 4,994,056
8,000,000 5.35%, 10/16/96..................................... 7,982,167
10,000,000 5.35%, 10/17/96..................................... 9,976,222
------------
30,925,254
------------
OIL-INTEGRATED -- 6.4%
9,700,000 Petrofina Delaware, Inc., 5.40%, 10/3/96............ 9,697,090
Statoil:
10,000,000 5.32%, 10/16/96..................................... 9,977,833
15,000,000 5.33%, 10/18/96..................................... 14,962,246
7,000,000 5.43%, 10/25/96..................................... 6,974,660
------------
41,611,829
------------
PUBLISHING/PRINTING -- 2.9%
Pearson, Inc.:
6,750,000 5.33%, 10/15/96..................................... 6,732,605
12,200,000 5.34%, 10/18/96..................................... 12,169,236
------------
18,901,841
------------
</TABLE>
6
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS -- (CONTINUED)
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
- ----------- ------------
SHORT-TERM NOTES -- (CONTINUED)
<C> <S> <C>
RESTAURANTS -- 6.1%
Golden Managers Acceptance Corp.:
$20,000,000 5.29%, 10/2/96...................................... $ 19,997,061
10,000,000 5.38%, 10/16/96..................................... 9,977,583
10,000,000 Supplier Managers Acceptance Corp., 5.38%,
10/16/96.......................................... 9,977,583
------------
39,952,227
------------
SPECIAL PURPOSE FINANCIAL -- 8.4%
Cooperative Association of Tractor Dealers, Inc.:
12,200,000 5.33%, 10/11/96..................................... 12,181,937
3,000,000 5.35%, 10/23/96..................................... 2,990,192
8,500,000 5.40%, 10/3/96...................................... 8,497,450
Preferred Receivables Funding Corp.:
16,100,000 5.29%, 10/22/96..................................... 16,050,318
10,000,000 5.32%, 10/7/96...................................... 9,991,133
5,000,000 5.35%, 10/1/96...................................... 5,000,000
------------
54,711,030
------------
TELEPHONE UTILITIES -- 1.5%
10,000,000 Bell Atlantic Capital Funding Corp.,
guaranteed by Bell Atlantic Corp., 5.42%,
10/15/96.......................................... 9,978,922
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost $659,021,567)................... 101.0% 659,021,567
Liabilities in Excess of Other Assets................... (1.0) (6,694,136)
------ ------------
NET ASSETS.............................................. 100.0% $652,327,431
------ ------------
------ ------------
</TABLE>
Short-term notes are generally traded on a discount basis; the interest rate is
the discount rate received by the Fund at the time of purchase.
See accompanying notes to financial statements.
7
<PAGE>
NATIONAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
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................................ 0.05 0.05 0.03 0.02 0.04
Dividends to shareholders......................... (0.05) (0.05) (0.03) (0.02) (0.04)
--------- --------- --------- ----------- -----------
Net asset value, end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- ----------- -----------
--------- --------- --------- ----------- -----------
Total Return.................................... 5.0% 5.2% 3.2% 2.3% 3.7%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).......... $652,327 $685,228 $823,343 $ 652,256 $2,286,067
Ratios to average net assets:
Net investment income............................. 4.86% 5.15% 3.20% 2.26% 3.70%
Expenses.......................................... 0.69% 0.69% 0.61% 0.71% 0.74%
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
NATIONAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash Accumulation Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended, as an open-end, diversified, management
investment company. The Trust consists of the National Money Market Fund, which
is managed by PIMCO Advisors L.P. ("the Manager").
INVESTMENT VALUATION -- The Trust values its portfolio on the basis of
amortized cost which approximates market value. The Trust maintains a
dollar-weighted average portfolio maturity of 90 days or less and only purchases
instruments having remaining maturities of 397 days or less.
FEDERAL TAXES -- No provision for Federal income taxes has been made since
the Trust has qualified as a regulated investment company under the Internal
Revenue Code. The cost basis of investments approximates amortized cost, which
is used for both tax and book purposes.
OTHER -- Security transactions are accounted for on the date the investments
are purchased or sold (trade date). Dividends (representing net investment
income) are declared daily and paid or reinvested in additional Trust shares
monthly. Investment income consists solely of interest income which includes
amortization of premium or accretion of discount.
ESTIMATES -- The preparation of financial statements in accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
2) SHARES AND DOLLARS OF BENEFICIAL INTEREST
The Trust has authorized an unlimited number of $.00001 par value shares of
beneficial interest. Transactions in shares and dollars of beneficial interest
were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 1996 SEPTEMBER 30, 1995
------------------ ------------------
<S> <C> <C>
Shares and dollars sold............................... 5,037,785,418 5,211,739,188
Shares and dollars issued to shareholders in
reinvestment of dividends............................ 27,657,940 34,655,237
------------------ ------------------
Total......................................... 5,065,443,358 5,246,394,425
Shares and dollars redeemed........................... (5,098,344,218) (5,384,508,657)
------------------ ------------------
Net decrease.......................................... (32,900,860) (138,114,232)
------------------ ------------------
------------------ ------------------
</TABLE>
9
<PAGE>
NATIONAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
SEPTEMBER 30, 1996
3) MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees are paid to the Manager in accordance with the investment
advisory agreement (the "Agreement") with the Trust. Under the Agreement, the
Manager selects and reviews investments and provides executive and other
personnel for management of the Trust. For such services, the Manager receives a
fee, computed daily and paid monthly, based on the annual percentage rates of
the corresponding levels of the Trust's average daily net assets as follows:
0.425% of the first $500 million,
0.400% of the next $500 million,
0.375% of the next $500 million,
0.350% of the next $500 million,
0.325% on amounts in excess of $2 billion.
The Manager's compensation is subject to reduction to the extent in any year
that the expenses (excluding brokerage commissions, taxes, interest,
distribution-related expenses and extraordinary expenses) of the Trust exceed
statutory limits of any jurisdiction in which the Trust's shares are qualified
for offer and sale. The most restrictive of such limitations is presently
believed to be 2.5% of the first $30 million of average annual net assets, 2% of
the next $70 million and 1.5% of any excess over $100 million.
The Trustees have approved a unified fee plan, covering compensation from
both of the Trusts for which they serve as independent Trustees, the Cash
Accumulation Trust and the PIMCO Advisors Funds. The fee is allocated between
the Trusts and among the Funds of the Trusts based on relative net assets. The
total Trustees' fees to be allocated are as follows:
<TABLE>
<S> <C>
Annual Retainer............................. $ 35,000
Meeting Fee (each meeting attended)......... 3,000
Committees:
Contract Chairman....................... 6,000
Audit Chairman.......................... 2,000
Audit Member............................ 1,000
</TABLE>
In addition, the Trustees receive reimbursement for travel and out-of-pocket
costs. Several individuals who are trustees or officers (or both) of the Trust
are also directors or officers of the Manager or its affiliates.
4) DISTRIBUTION ASSISTANCE
Pursuant to a Distribution Plan adopted by the Trust, the Trust compensated
the distributor, PIMCO Advisors Distribution Company, an affiliate of the
Manager, $609,136 for services provided and expenses incurred during the year
ended September 30, 1996 in connection with assistance rendered in the sale of
Trust shares. During the year ended September 30, 1996, the distribution fee,
which is accrued daily and paid monthly, was equal on an annual basis to 0.10%
of the Trust's average daily net assets.
10
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of Cash Accumulation Trust:
We have audited the accompanying statement of assets and liabilities of the
Cash Accumulation Trust (National Money Market Fund), including the statement of
investments, as of September 30, 1996, and the related statement of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Trust'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 as of
September 30, 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, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
National Money Market Fund of the Cash Accumulation Trust as of September 30,
1996, and the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
October 23, 1996
11
<PAGE>
INVESTMENT ADVISER
PIMCO Advisors L.P.
DISTRIBUTOR
PIMCO Advisors Distribution Company
SHAREHOLDER SERVICING AND TRANSFER AGENT
Shareholder Services, Inc.
CUSTODIAN OF PORTFOLIO SECURITIES
The Bank of New York
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
LEGAL COUNSEL
Ropes & Gray
This is a copy of a report by Cash Accumulation Trust to its shareholders.
Distribution of this report to persons other than shareholders of the Trust is
authorized only in connection with or when preceded by the Trust's Prospectus.
This report does not offer for sale or solicit orders to buy any securities.
ANNUAL
REPORT
SEPTEMBER 30, 1996
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