<PAGE>
CASH ACCUMULATION TRUST
2187 ATLANTIC STREET, STAMFORD, CT 06902
April 26, 1996
DEAR FELLOW SHAREHOLDER:
After spectacular gains from both stocks and bonds in 1995, the financial
markets have taken us on a bumpy ride thus far in 1996. To recap 1995, the stock
market, as measured by the Standard & Poor's 500 Index, posted a 37.4%
return--its best performance in nearly 40 years. The bond market, as measured by
the Lehman Aggregate Bond Index, rose 18.5%--its strongest return in a decade. A
number of factors were responsible for these dramatic gains, including strong
corporate profits, falling interest rates and low inflation.
STOCKS BOUNCE HIGHER
Thus far in 1996, the stock market's performance has largely confounded the
financial experts. As the year began, few felt the five year bull market could
be sustained. Yet during the first quarter of the year, stocks rose 5.4% amid
increasing volatility. The market's ascent was especially surprising given
rising interest rates, the mixed outlook for corporate profits, and lack of a
federal budget accord.
RISING INTEREST RATES HURT BONDS
Just as the experts were surprised by the stock market's strength, many have
been equally surprised by the bond market's recent weakness. As the year began,
inflation was low and the economy appeared weak. This is typically a good
environment for bonds, as it often leads to a downward trend in interest rates.
When interest rates fall, the prices of bonds rise.
However, during the first quarter, interest rates rose sharply on fears that
economic growth would outperform previous expectations. Good economic news is
generally negative for the bond market. After a full two percentage point drop
in long-term interest rates during 1995, these rates jumped nearly 3/4 of a
percentage point during the first quarter of 1996.
While recent employment figures point to renewed economic strength, we
expect more moderate growth could be in store. In addition, we feel inflation
will remain under control, hovering in the 3% range.
The Cash Accumulation Trust continues to meet its objective of providing
current income to the extent consistent with preservation of capital. As of
March 31, 1996, the Fund's 7-day effective yield was 4.66%. This compares to a
7-day effective yield of 5.15% on September 30, 1995 and 5.41% one year ago. The
Fund's average maturity is 18 days, versus 24 days six months ago.
We appreciate your support and look forward to being a part of your
financial future for years to come.
Sincerely,
[SIG.]
Robert A. Prindiville
President
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
MARCH 31, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
FACE AMOUNT (NOTE 1)
- ------------- --------------
<C> <S> <C> <C>
SHORT-TERM NOTES--99.8%
BANKS--15.5%
$ 19,300,000 Abbey National North American Finance, Inc., 5.30%, 5/9/96............................. $ 19,192,027
8,700,000 BBV Bank, 5.24%, 4/15/96............................................................... 8,682,271
10,000,000 BHF Finance (Delaware), Inc., 5.35%, 4/4/96............................................ 9,995,542
Government Development Bank for Puerto Rico:
10,000,000 5.25%, 5/6/96.......................................................................... 9,948,958
15,000,000 5.38%, 4/11/96......................................................................... 14,977,583
Matterhorn Capital Corp.:
15,000,000 5.20%, 4/10/96......................................................................... 14,980,500
10,000,000 5.29%, 4/22/96......................................................................... 9,969,137
9,000,000 OKB Bank, 5.35%, 5/6/96................................................................ 8,953,188
--------------
96,699,206
--------------
BEVERAGES--6.6%
Bass Finance (C.I.) Ltd., guaranteed by Bass PLC:
7,700,000 5.12%, 4/19/96......................................................................... 7,680,288
10,000,000 5.13%, 4/24/96......................................................................... 9,967,225
10,000,000 5.15%, 5/7/96.......................................................................... 9,948,500
14,000,000 PepsiCo, Inc., 5.25%, 4/25/96.......................................................... 13,950,971
--------------
41,546,984
--------------
BROKER/DEALERS--11.5%
Bear Stearns & Co., Inc.:
15,000,000 5.21%, 4/12/96......................................................................... 14,976,121
10,000,000 5.24%, 4/12/96......................................................................... 9,983,989
Goldman Sachs & Co.:
10,000,000 5.17%, 4/9/96.......................................................................... 9,988,511
9,800,000 5.30%, 4/2/96.......................................................................... 9,798,557
10,000,000 5.35%, 4/16/96......................................................................... 9,977,708
17,100,000 Merrill Lynch & Co., Inc., 5.23%, 4/3/96............................................... 17,095,032
--------------
71,819,918
--------------
BUILDING MATERIALS--1.8%
11,000,000 Redland Finance, Inc., 5.28%, 4/11/96.................................................. 10,983,867
--------------
CHEMICALS--3.7%
23,100,000 DuPont, Inc., 5.34%, 4/8/96............................................................ 23,076,015
--------------
</TABLE>
1
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
MARCH 31, 1996 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
VALUE
FACE AMOUNT (NOTE 1)
- ------------- --------------
<C> <S> <C> <C>
SHORT-TERM NOTES--(CONTINUED)
COMMERCIAL FINANCE--8.1%
APRECO, Inc.:
$ 5,900,000 5.07%, 5/15/96......................................................................... $ 5,863,440
8,500,000 5.30%, 5/23/96......................................................................... 8,434,928
7,300,000 5.38%, 4/30/96......................................................................... 7,268,392
Sheffield Receivables Corp.:
14,000,000 5.27%, 4/16/96......................................................................... 13,969,258
15,000,000 5.30%, 4/12/96......................................................................... 14,975,708
--------------
50,511,726
--------------
CONSUMER FINANCE--10.9%
CSW Credit, Inc.:
14,100,000 5.18%, 4/17/96......................................................................... 14,067,539
15,000,000 5.32%, 5/17/96......................................................................... 14,898,033
Dean Witter, Discover & Co.:
10,000,000 5.13%, 4/19/96......................................................................... 9,974,350
15,000,000 5.32%, 4/23/96......................................................................... 14,951,233
14,000,000 Student Loan Finance Corp., 5.28%, 4/18/96............................................. 13,965,093
--------------
67,856,248
--------------
ELECTRIC UTILITIES--1.6%
10,000,000 National Rural Utilities Cooperative Finance Corp., 5.18%, 4/2/96...................... 9,998,561
--------------
ELECTRONICS--1.3%
8,200,000 Siemens Corp., 5.25%, 4/22/96.......................................................... 8,174,888
--------------
FOOD--5.8%
Canadian Wheat Board:
16,900,000 5.22%, 4/9/96.......................................................................... 16,880,396
12,400,000 5.30%, 4/29/96......................................................................... 12,348,884
7,000,000 Nestle Capital Corp., 5.25%, 4/25/96................................................... 6,989,792
--------------
36,219,072
--------------
INDUSTRIAL SERVICES--2.4%
15,300,000 PHH Corp., 5.15%, 4/4/96............................................................... 15,293,434
--------------
METALS/MINING--3.2%
20,000,000 RTZ America, Inc., 5.45%, 4/1/96....................................................... 20,000,000
--------------
OIL-INTEGRATED--2.5%
Statoil:
10,000,000 5.21%, 4/10/96......................................................................... 9,986,975
6,000,000 5.33%, 4/24/96......................................................................... 5,979,568
--------------
15,966,543
--------------
</TABLE>
2
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
MARCH 31, 1996 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
VALUE
FACE AMOUNT (NOTE 1)
- ------------- --------------
<C> <S> <C> <C>
SHORT-TERM NOTES--(CONTINUED)
PUBLISHING/PRINTING--3.9%
Pearson, Inc.:
$ 12,000,000 5.35%, 4/18/96......................................................................... $ 11,969,683
12,500,000 5.40%, 4/26/96......................................................................... 12,453,125
--------------
24,422,808
--------------
RESTAURANTS--6.6%
Golden Managers Acceptance Corp.:
12,800,000 5.25%, 4/17/96......................................................................... 12,770,133
14,100,000 5.35%, 5/1/96.......................................................................... 14,037,138
Supplier Managers Acceptance Corp.:
7,300,000 5.23%, 4/3/96.......................................................................... 7,297,879
7,000,000 5.25%, 4/17/96......................................................................... 6,983,667
--------------
41,088,817
--------------
SPECIAL PURPOSE FINANCIAL--13.3%
Cooperative Association of Tractor Dealers, Inc.:
13,900,000 5.22%, 4/4/96.......................................................................... 13,893,954
10,600,000 5.35%, 5/23/96......................................................................... 10,518,086
Corporate Asset Funding Co., Inc.:
10,000,000 5.18%, 4/11/96......................................................................... 9,985,611
3,600,000 5.18%, 4/2/96.......................................................................... 3,599,482
15,000,000 5.27%, 5/1/96.......................................................................... 14,934,123
Preferred Receivables Funding Corp.:
10,000,000 5.23%, 4/8/96.......................................................................... 9,989,830
20,000,000 5.33%, 4/15/96......................................................................... 19,958,544
--------------
82,879,630
--------------
TELEPHONE UTILITIES--1.1%
6,700,000 BellSouth Telecommunications, Inc., 5.17%, 4/26/96..................................... 6,675,945
--------------
TOTAL INVESTMENTS (Cost $623,213,662) 99.8% $ 623,213,662
Other Assets Net of Liabilities 0.2 1,200,794
----- --------------
NET ASSETS 100.0% $ 624,414,456
----- --------------
----- --------------
</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.
3
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1996 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments, at amortized cost (cost $623,213,662) (Note 1)....... $623,213,662
Cash.............................................................. 40,020
Receivable for Fund shares sold................................... 19,177,355
Other............................................................. 102,718
------------
Total assets.............................................. 642,533,755
------------
LIABILITIES
Payables and other liabilities:
Fund shares redeemed............................................ 16,703,160
Dividends....................................................... 791,448
Management fees (Note 3)........................................ 215,237
Shareholder communications...................................... 129,220
Trustees' fees.................................................. 115,448
Distribution fees (Note 4)...................................... 51,162
Transfer and dividend disbursing agent fees..................... 34,865
Other........................................................... 78,759
------------
Total liabilities......................................... 18,119,299
------------
NET ASSETS............................................................ $624,414,456
------------
------------
NET ASSET VALUE, REDEMPTION VALUE AND OFFERING PRICE PER SHARE
($624,414,456 DIVIDED BY 624,414,456 SHARES)......................... $ 1.00
------------
------------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest and discount earned.................................. $ 16,486,025
------------
EXPENSES
Management fees (Note 3)...................................... 1,225,381
Distribution fees (Note 4).................................... 290,696
Transfer and dividend disbursing agent fees................... 146,546
Legal and auditing fees....................................... 126,554
Shareholder communications.................................... 87,298
Trustees' fees and expenses (Note 3).......................... 85,742
Registration and filing fees.................................. 69,698
Insurance expenses............................................ 55,143
Custodian fees and expenses................................... 22,029
------------
Total expenses............................................ 2,109,087
------------
NET INVESTMENT INCOME AND NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................................... $ 14,376,938
------------
------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1996 SEPTEMBER 30,
(UNAUDITED) 1995
---------------- ---------------
<S> <C> <C>
OPERATIONS
Net investment income and net increase in net assets resulting from
operations.................................................................. $ 14,376,938 $ 35,922,653
---------------- ---------------
DIVIDENDS TO SHAREHOLDERS........................................................ (14,376,938) (35,922,653)
---------------- ---------------
BENEFICIAL INTEREST TRANSACTIONS
Net decrease in net assets resulting from beneficial interest transactions
(Note 2).................................................................... (60,813,835) (138,114,232)
---------------- ---------------
Net decrease in net assets................................................... (60,813,835) (138,114,232)
NET ASSETS
Beginning of period.......................................................... 685,228,291 823,342,523
---------------- ---------------
End of period................................................................ $ 624,414,456 $ 685,228,291
---------------- ---------------
---------------- ---------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
NATIONAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1996 -------------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
---------------- --------- --------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations--net investment
income........................................... .02 .05 .03 .02 .04 .06
Dividends and distributions to shareholders....... (.02) (.05) (.03) (.02) (.04) (.06)
-------- --------- --------- --------- ----------- -----------
Net asset value, end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- --------- --------- --------- ----------- -----------
-------- --------- --------- --------- ----------- -----------
Total Return...................................... 2.5% 5.2% 3.2% 2.3% 3.7% 6.2%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).......... $624,414 $685,228 $823,343 $652,256 $2,286,067 $2,523,392
Ratios to average net assets:
Net investment income........................... 4.94%(1) 5.15% 3.20% 2.26% 3.70% 6.17%
Expenses........................................ .73%(1) .69% .61% .71% .74% .74%
</TABLE>
(1) Annualized
See accompanying notes to financial statements.
6
<PAGE>
NATIONAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 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 discount.
2) SHARES OF BENEFICIAL INTEREST
The Trust has authorized an unlimited number of $.00001 par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
1996 1995
---------------- ----------------
<S> <C> <C>
Shares sold...................................................................... 2,485,584,092 5,211,739,188
Shares issued to shareholders in reinvestment of dividends....................... 13,248,739 34,655,237
---------------- ----------------
Total.................................................................... 2,498,832,831 5,246,394,425
Shares redeemed.................................................................. (2,559,646,666) (5,384,508,657)
---------------- ----------------
Net decrease..................................................................... (60,813,835) (138,114,232)
---------------- ----------------
---------------- ----------------
</TABLE>
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:
7
<PAGE>
NATIONAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
MARCH 31, 1996
3) MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES--(CONTINUED)
.425% of the first $500 million,
.400% of the next $500 million,
.375% of the next $500 million,
.350% of the next $500 million,
.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 1/2% of the first $30 million of average annual net assets, 2%
of the next $70 million and 1 1/2% 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, $290,696 for services provided and expenses incurred during the six
months ended March 31, 1996 in connection with assistance rendered in the sale
of Trust shares. During the six months ended March 31, 1996, the distribution
fee, which is accrued daily and paid monthly, was equal on an annual basis to
.10% of the Trust's average daily net assets.
8
<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
The financial statements included herein have been taken from the records of the
Trust without examination by the independent accountants.
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.
SEMI-ANNUAL
REPORT
MARCH 31, 1996
