<PAGE>
CASH ACCUMULATION TRUST
840 Newport Center Drive
Newport Beach, CA 92660
April 22, 1997
Dear Cash Accumulation Trust Shareholder:
We are 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 March 31, 1997, the Fund's 7-day
yield was 4.83%. This is slightly higher than six months ago, and higher than
its 7-day yield of 4.66% at the end of March, 1996.
Given the last year's stock and bond market volatility, it is 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 is 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,
/s/ Stephen J. Treadway
Stephen J. Treadway
President
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
FACE AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
SHORT-TERM NOTES--100.0%
BANKS--22.3%
Abbey National North America Corp.:
$ 8,500,000 5.26%, 4/23/97................................... $ 8,472,677
10,000,000 5.57%, 5/12/97................................... 9,936,564
10,000,000 BHF Finance (Delaware), Inc., 5.27%, 5/21/97...... 9,926,806
Commonwealth Bank of Australia:
15,000,000 5.29%, 5/7/97.................................... 14,920,650
10,000,000 5.32%, 5/9/97.................................... 9,943,844
Cregem North America, Inc.:
5,400,000 5.29%, 6/26/97................................... 5,331,759
10,000,000 5.32%, 4/24/97................................... 9,966,011
13,400,000 5.33%, 4/21/97................................... 13,360,321
9,600,000 Deutsche Bank Financial, Inc., 5.33%, 4/1/97...... 9,600,000
Government Development Bank for Puerto Rico:
11,000,000 5.28%, 4/22/97................................... 10,966,120
15,200,000 5.30%, 4/18/97................................... 15,161,958
5,300,000 5.30%, 4/23/97................................... 5,282,834
12,760,000 Matterhorn Capital Corp., 5.24%, 4/8/97........... 12,746,999
18,000,000 Oesterreichische Kontrollbank AG, 5.31%, 5/6/97... 17,907,075
10,000,000 U.S. Financial, Inc., guaranteed by Commerzbank
AG, 5.43%, 4/28/97............................... 9,959,275
------------
163,482,893
------------
BEVERAGES--4.7%
Bass Finance (C.I.) Ltd., guaranteed by Bass PLC:
10,000,000 5.33%, 5/6/97.................................... 9,948,181
5,988,000 5.37%, 5/8/97.................................... 5,954,951
13,600,000 5.52%, 4/28/97................................... 13,543,696
5,000,000 5.55%, 5/6/97.................................... 4,973,021
------------
34,419,849
------------
BROKER/DEALERS--13.2%
Bear Stearns & Co., Inc.:
15,800,000 5.35%, 4/29/97................................... 15,734,256
16,000,000 5.52%, 5/16/97................................... 15,889,600
Goldman Sachs Group, L.P.:
9,200,000 5.30%, 5/5/97.................................... 9,153,949
8,000,000 5.31%, 5/9/97.................................... 7,955,160
14,600,000 5.32%, 5/8/97.................................... 14,520,170
</TABLE>
1
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
VALUE
FACE AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
Merrill Lynch & Co., Inc.:
$ 7,000,000 5.31%, 4/16/97................................... $ 6,984,512
7,000,000 5.50%, 6/2/97.................................... 6,933,694
10,000,000 5.55%, 5/5/97.................................... 9,947,583
10,000,000 5.60%, 6/20/97................................... 9,875,556
------------
96,994,480
------------
BUILDING MATERIALS--2.8%
Redland Finance, Inc.:
5,000,000 5.33%, 4/14/97................................... 4,990,376
15,200,000 5.40%, 4/24/97................................... 15,147,560
------------
20,137,936
------------
CHEMICALS--1.7%
12,750,000 United States Borax & Chemicals Corp., 5.40%,
6/16/97.......................................... 12,604,650
------------
COMMERCIAL FINANCE--14.6%
6,000,000 Alpha Financial Corp., 5.30%, 5/13/97............. 5,962,900
APRECO, Inc.:
10,000,000 5.60%, 4/30/97................................... 9,954,889
7,900,000 5.65%, 5/2/97.................................... 7,861,564
CIESCO L.P.:
15,000,000 5.28%, 4/9/97.................................... 14,982,400
7,800,000 5.28%, 4/11/97................................... 7,788,560
9,900,000 5.45%, 5/2/97.................................... 9,853,539
Corporate Receivables Corp.:
10,000,000 5.27%, 4/4/97.................................... 9,995,608
10,000,000 5.27%, 4/10/97................................... 9,986,825
Sheffield Receivables Corp.:
8,000,000 5.32%, 4/10/97................................... 7,989,360
11,100,000 5.32%, 4/11/97................................... 11,083,597
12,008,000 5.55%, 5/1/97.................................... 11,952,463
------------
107,411,705
------------
CONSUMER FINANCE--12.1%
CSW Credit, Inc.:
8,300,000 5.26%, 4/14/97................................... 8,284,235
7,000,000 5.31%, 4/11/97................................... 6,989,675
3,800,000 5.37%, 4/7/97.................................... 3,796,599
3,812,000 5.37%, 4/8/97.................................... 3,808,020
9,000,000 5.51%, 4/25/97................................... 8,966,940
</TABLE>
2
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
VALUE
FACE AMOUNT (NOTE 1)
----------- ------------
<C> <S> <C>
Dean Witter, Discover & Co.:
$15,000,000 5.32%, 4/3/97.................................... $ 14,995,567
15,000,000 5.33%, 5/15/97................................... 14,902,283
United States Central Credit Union:
17,264,000 5.25%, 4/4/97.................................... 17,256,447
10,000,000 5.32%, 5/12/97................................... 9,939,411
------------
88,939,177
------------
ELECTRIC UTILITIES--3.7%
National Rural Utilities Cooperative Finance
Corp.:
7,000,000 5.30%, 4/7/97.................................... 6,993,817
10,000,000 5.31%, 4/2/97.................................... 9,998,525
10,000,000 5.31%, 5/14/97................................... 9,936,575
------------
26,928,917
------------
ELECTRONICS--0.7%
5,000,000 General Electric Co., 5.43%, 4/30/97.............. 4,978,129
------------
GOVERNMENT AGENCIES--1.8%
13,000,000 Federal Home Loan Mortgage Corp., 5.64%, 8/28/97.. 13,010,002
------------
METAL: MISCELLANEOUS--1.4%
RTZ America, Inc.:
5,700,000 5.28%, 4/13/97................................... 5,664,888
4,700,000 5.32%, 4/1/97.................................... 4,700,000
------------
10,364,888
------------
RESTAURANTS--6.4%
Golden Managers Acceptance Corp.:
20,000,000 5.27%, 4/2/97.................................... 19,997,072
10,000,000 5.27%, 4/2/97.................................... 9,998,536
5,000,000 5.35%, 4/16/97................................... 4,988,854
12,100,000 5.42%, 4/30/97................................... 12,047,170
------------
47,031,632
------------
SPECIAL PURPOSE FINANCIAL--12.6%
6,500,000 Cooperative Association of Tractor Dealers, Inc.,
5.72%, 4/8/97.................................... 6,492,771
Delaware Funding Corp.:
15,000,000 5.28%, 4/15/97................................... 14,969,200
15,000,000 5.60%, 5/19/97................................... 14,888,000
5,500,000 Falcon Asset Securitization Corp., 5.32%, 4/7/97.. 5,495,123
</TABLE>
3
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
VALUE
FACE AMOUNT (NOTE 1)
----------- -----------
<C> <S> <C>
Preferred Receivables Funding Corp.:
$10,200,000 5.30%, 4/3/97..................................... $10,196,997
13,500,000 5.33%, 5/12/97.................................... 13,418,051
9,000,000 5.47%, 4/16/97.................................... 8,979,488
Windmill Funding Corp.:
5,400,000 5.33%, 4/1/97..................................... 5,400,000
12,600,000 5.35%, 4/17/97.................................... 12,570,040
-----------
92,409,670
-----------
TELEPHONE UTILITIES--2.0%
15,000,000 Bell Atlantic Network Funding Corp., 5.60%,
4/14/97........................................... 14,969,667
------------
TOTAL INVESTMENTS (Cost $733,683,595) 100.0% $733,683,595
Other Assets Net of Liabilities 0.0 119,213
----- ------------
NET ASSETS 100.0% $733,802,808
===== ============
</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.
4
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1997 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments, at amortized cost (cost $733,683,595)(Note 1)........ $733,683,595
Cash.............................................................. 72,243
Receivables:
Receivable for Fund shares sold.................................. 28,976,630
Interest......................................................... 4,806
Other............................................................ 188,927
------------
Total assets.................................................. 762,926,201
------------
LIABILITIES
Payables and other liabilities:
Fund shares redeemed............................................. 27,306,874
Dividends........................................................ 1,037,312
Management fees (Note 3)......................................... 242,668
Transfer and dividend disbursing agent fees...................... 136,268
Shareholder communications....................................... 92,513
Distribution fees (Note 4)....................................... 58,013
Trustees' fees (Note 3).......................................... 56,029
Other............................................................ 193,716
------------
Total liabilities............................................. 29,123,393
------------
NET ASSETS.......................................................... $733,802,808
============
NET ASSET VALUE, REDEMPTION VALUE AND OFFERING PRICE PER SHARE
($733,802,808 / 733,802,808 SHARES)................................ $ 1.00
============
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1997 (UNAUDITED)
INVESTMENT INCOME
Interest and discount earned...................................... $ 17,525,691
------------
EXPENSES
Management fees (Note 3).......................................... 1,350,334
Distribution fees (Note 4)........................................ 322,020
Transfer and dividend disbursing agent fees....................... 211,607
Legal and auditing fees........................................... 101,904
Trustees' fees and expenses (Note 3).............................. 41,311
Custodian fees and expenses....................................... 21,230
Registration and filing fees...................................... 143,902
Other............................................................. 5,968
------------
Total expenses................................................ 2,198,276
------------
NET INVESTMENT INCOME AND NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS......................................................... $ 15,327,415
============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
NATIONAL MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1997 SEPTEMBER 30,
(UNAUDITED) 1996
---------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income and net increase in net
assets resulting from operations............. $ 15,327,415 $ 29,603,431
------------ ------------
DIVIDENDS TO SHAREHOLDERS....................... (15,327,415) (29,603,431)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets
resulting from beneficial interest
transactions (Note 2)........................ 81,475,377 (32,900,860)
------------ ------------
Net increase (decrease) in net assets......... 81,475,377 (32,900,860)
NET ASSETS
Beginning of period........................... 652,327,431 685,228,291
------------ ------------
End of period................................. $733,802,808 $652,327,431
============ ============
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
NATIONAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1997 --------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
---------------- -------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
DATA:
Net asset value,
beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment
operations--net
investment income...... 0.02 0.05 0.05 0.03 0.02 0.04
Dividends to
shareholders........... (0.02) (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 $ 1.00
======== ======== ======== ======== ======== ==========
Total Return............ 2.2% 5.0% 5.2% 3.2% 2.3% 3.7%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (in thousands).. $733,803 $652,327 $685,228 $823,343 $652,256 $2,286,067
Ratios to average net
assets:
Net investment income.. 4.75%(1) 4.86% 5.15% 3.20% 2.26% 3.70%
Expenses............... 0.68%(1) 0.69% 0.69% 0.61% 0.71% 0.74%
</TABLE>
(1) Annualized
See accompanying notes to financial statements.
7
<PAGE>
NATIONAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1997
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's investment objective is current income to the
extent consistent with preservation of capital and liquidity. The Trust
consists of the National Money Market Fund (the "Fund"), which is managed by
PIMCO Advisors L.P. ("the Manager"). The Fund also has a sub-adviser, Columbus
Circle Investors ("CCI"), which, under the supervision of the Manager and the
Trust's Trustees, directs the investment of the Fund's assets.
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 intends to qualify 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 and 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>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
1997 1996
---------------- --------------
<S> <C> <C>
Shares and dollars sold...................... 2,833,816,051 5,037,785,418
Shares and dollars issued to shareholders in
reinvestment of dividends................... 14,607,558 27,657,940
-------------- --------------
Total.................................... 2,848,423,609 5,065,443,358
Shares and dollars redeemed.................. (2,766,948,232) (5,098,344,218)
-------------- --------------
Net increase (decrease)...................... 81,475,377 (32,900,860)
============== ==============
</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,
8
<PAGE>
NATIONAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
MARCH 31, 1997
3) MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES--(CONTINUED)
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.
Under a sub-adviser agreement between the Manager and CCI, the Manager pays
CCI a monthly fee based on the Fund's average daily net asset value at an
annual rate of 0.05% of net assets.
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 Funds: Multi-Manager Series. 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................................ $45,000
Meeting Fee (each meeting attended)............ 2,000
Committees:
Chairman..................................... 2,000
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 Funds Distribution Company, an affiliate of the
Manager, $322,020 for services provided and expenses incurred during the six
months ended March 31, 1997 in connection with assistance rendered in the sale
of Trust shares. During the six months ended March 31, 1997, 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.
9
<PAGE>
INVESTMENT ADVISER
PIMCO Advisors L.P.
SUB-ADVISER
Columbus Circle Investors
DISTRIBUTOR
PIMCO Funds Distribution Company
SHAREHOLDER SERVICING AND TRANSFER AGENT
Shareholder Services, Inc.
CUSTODIAN OF PORTFOLIO SECURITIES
The Bank of New York
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
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.
SEMI-ANNUAL
REPORT
MARCH 31, 1997
--------------------------
Cash
Accumulation
Trust
--------------------------
National Money Market Fund
--------------------------