<PAGE>
SEMIANNUAL REPORT MARCH 31, 2000
Cash Accumulation Trust/
Liquid Assets Fund
Fund Type Money market
Objective Current income to the extent consistent with
preservation of capital and liquidity
(GRAPHIC)
This report is not authorized for distribution to
prospective investors unless preceded or accompanied by a
current prospectus.
(LOGO)
<PAGE>
Build on the Rock
Investment Goals and Style
Liquid Assets Fund--one of two series of Cash Accumulation
Trust--seeks current income to the extent consistent with
preservation of capital and liquidity. The Fund is a
diversified portfolio of high-quality, U.S. dollar-
denominated money market securities issued by the U.S.
government and its agencies, major corporations, and
commercial banks of the United States and foreign
countries. Maturities can range from one day to 13
months. We purchase securities rated in one of the two
highest rating categories by at least two major
independent rating agencies or, if not rated, deemed to
be of equivalent quality by our credit research staff.
There can be no assurance that the Fund will achieve its
investment objective.
Money Market Fund Yield Comparison
(GRAPH)
<PAGE>
www.prudential.com (800) 225-1852
Performance at a Glance
Fund Facts As of 3/31/00
7-Day Net Asset Weighted Avg. Net Assets
Current Yld. Value (NAV) Mat. (WAM) (Millions)
Liquid Assets Fund 5.92% $1.00 53 Days $406
iMoneyNet, Inc.(1st
& 2nd Tier-
General Purpose-Retail)
Average* 5.29% $1.00 52 Days N/A
Note: Yields will fluctuate from time to time, and past
performance is not indicative of future results. An
investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve
the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
*iMoneyNet, Inc. reports a seven-day current yield, NAV,
and WAM on Tuesdays. This is the data of all funds in the
iMoneyNet, Inc. Money Fund (1st & 2nd Tier-General
Purpose-Retail) category as of March 28, 2000, the
closest date to the end of our reporting period.
Weighted Average Maturity Compared to the Average Money
Market Fund
(GRAPH)
1
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Message From the Fund's President May 16, 2000
Dear Shareholder,
Prudential's Money Markets Sector Team identified and
took advantage of good investment opportunities that
emerged as money market yields climbed during our six-
month review period that ended on March 31, 2000. The
team employed credit research, interest-rate analysis,
and relative value analysis that enabled Liquid Assets
Fund--one of two series of Cash Accumulation Trust--to
provide a competitive yield and a stable $1.00 net asset
value.
The Fund's seven-day current yield was 5.92% on March 31,
2000, compared with 5.29% for the average comparable
money market fund tracked by iMoneyNet, Inc. The
following report takes a closer look at developments in
the money markets, and explains how the Fund was
positioned accordingly.
HIGH-QUALITY INVESTMENTS CAN HELP REDUCE RISK
Having a conservative, high-quality investment
alternative, such as a money market fund, made good sense
for investors who were concerned about volatile
conditions in the financial markets. Indeed, investors
may do well to consider allocating some of their assets
to a money market fund as part of their overall
investment strategy. For any of life's unexpected events,
it is reassuring to have quick access to your money and
an investment vehicle that provides stability of
principal and liquidiInvestment Adviser's Reportty.
Thank you for your continued confidence in Prudential
mutual funds.
Sincerely,
John R. Strangfeld, President
Cash Accumulation Trust/Liquid Assets Fund
2
<PAGE>
www.prudential.com (800) 225-1852
Investment Adviser's ReportDear Shareholder,
Shortly after our six-month review period began on
October 1, 1999, Federal Reserve policy makers announced
they were leaning toward raising short-term interest
rates again. The Fed had already hiked rates twice in
1999 to cool off the economy. However, the Fed remained
concerned that continued strong economic growth and
rising oil prices could drive inflation higher. In
anticipation of another rate increase, investors pushed
yields on money market securities higher, which caused
their prices to fall.
Y2K bargains benefited the Fund
As money market yields rose in the early autumn of 1999,
we bought only a modest amount of fixed-rate securities
because we had invested heavily in adjustable-rate
securities during the summer of that year. Some banks and
corporations had rushed to complete their year-end
borrowing early by issuing securities whose interest
rates adjusted periodically based on London Interbank
Offered Rates or LIBOR. (LIBOR is a widely quoted money
market benchmark.) This was done to avoid any
difficulties that might occur in the financial markets if
computers malfunctioned or shut down while switching
their internal dates from 1999 to 2000 (Y2K). The
adjustable-rate securities provided generous yield
spreads in order to appeal to investors. We increased our
holdings to roughly 37% of the Fund's total investments
by late 1999, up from a normal exposure of approximately
20%.
Meanwhile, the U.S. central bank had engineered a
quarter-point rate hike on November 16, 1999, that raised
the federal funds rate (the rate U.S. banks charge each
other for overnight loans ) to 5.50%. The discount rate
on loans to banks that borrow from the Federal Reserve
system was also increased to 5.00% from 4.75%. There had
been talk that the Fed might refrain from tightening
monetary policy out of concern that potential Y2K
computer problems might hurt the economy. But the
changeover from 1999 to 2000 went smoothly, and yield
spreads on adjustable-rate securities narrowed to
historical norms in the new year. The Fund's performance
benefited from this trend because of its overweight
exposure to these securities.
3
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Investment Adviser's Report
New year brought fresh buying opportunities
As concern about Y2K risks faded rapidly from the market,
investor attention turned toward the next Fed meeting
scheduled for early February 2000. Our strategy involved
purchasing shorter-dated money market instruments. As
they matured, we were able to reinvest the proceeds in
higher-yielding money market securities that became
available after the Fed engineered back-to-back rate
hikes. It boosted the federal funds rate to 5.75% and the
discount rate to 5.25% on February 2, 2000, then raised
them to 6.00% and 5.50%, respectively, on March 21, 2000.
Looking Ahead--We expect more short-term rate hikes
The U.S. economy grew at an annual pace of more than 5.0%
in the first three months of 2000, powered by the largest
increase in consumer spending in 17 years. While this is
slower than the 7.3% annual pace of the final quarter of
1999, the longest economic expansion in the history of
the United States remains very strong. Moreover, labor
costs rose for U.S. businesses at the fastest pace in
more than 10 years in the first quarter of 2000. There is
also evidence that these cost pressures are being passed
along to consumers in the form of higher prices. This
combination of brisk economic growth and rising inflation
led the Fed to raise the federal funds rate and the
discount rate by half of a percentage point to 6.50% and
6.00%, respectively, in May. Unless there is significant
moderation in economic activity, the Fed has
hinted that more interest-rate increases will be
forthcoming.
Prudential Money Markets Sector Team
4
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Portfolio of Investments as of March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C> <C>
-----------------------------------------------------------------------------------------
Bank Notes 12.7%
American Express Centurion Bank
$ 4,000 6.36%, 4/10/00(b) $ 4,000,000
Comerica Bank
6,000 5.93%, 4/3/00(b) 5,998,237
First Union National Bank
5,000 5.89%, 4/3/00(b) 5,000,000
3,000 6.04%, 4/19/00(b) 3,000,000
4,000 6.07%, 4/21/00(b) 4,000,000
7,000 6.18%, 6/21/00(b) 7,002,086
KeyBank NA
1,500 6.09%, 4/17/00(b) 1,500,324
3,000 6.05%, 6/14/00(b) 2,999,642
National City Bank
10,000 6.55%, 1/31/01 9,996,030
U.S. Bank NA
3,000 5.91%, 4/19/00(b) 2,999,542
1,000 6.05%, 4/19/00(b) 999,939
4,000 6.055%, 4/25/00(b) 3,999,537
---------------
51,495,337
-------------------------------------------------------------------------------------
Certificates Of Deposit - Domestic 2.5%
Chase Manhattan Bank
5,000 5.365%, 5/22/00 4,999,458
Southtrust Bank NA
5,000 6.30%, 8/28/00 5,000,201
---------------
9,999,659
-------------------------------------------------------------------------------------
Certificates Of Deposit - Yankee 8.7%
Bank Austria AG
6,600 6.01%, 5/8/00 6,599,922
Bank of Nova Scotia
5,000 5.51%, 6/8/00 4,992,584
Deutsche Bank AG
3,000 5.60%, 6/14/00 2,999,708
5,000 6.075%, 11/24/00 4,997,677
5,000 6.75%, 2/22/01 4,997,876
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Portfolio of Investments as of March 31, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C> <C>
UBS AG
$ 5,000 5.29%, 5/18/00 $ 4,999,629
2,000 6.38%, 12/20/00 1,999,314
Westpac Banking Corp.
4,000 6.22%, 11/30/00 3,997,970
---------------
35,584,680
-------------------------------------------------------------------------------------
Commercial Paper 49.0%
Alliance & Leicester PLC
2,000 5.88%, 4/6/00 1,998,367
1,000 5.88%, 4/11/00 998,367
Allianz of America, Inc.
1,000 5.75%, 5/19/00 992,333
B-One Australia Ltd.
2,000 5.90%, 4/20/00 1,993,772
5,000 5.95%, 5/3/00 4,973,556
BankAmerica Corp.
5,000 6.06%, 8/1/00 4,897,317
Barton Capital Corp.
2,000 5.90%, 4/20/00 1,993,772
1,259 6.11%, 4/20/00 1,254,940
BBL North America Funding Corp.
5,000 5.96%, 6/5/00 4,946,194
Bear Stearns Companies, Inc.
4,898 5.87%, 4/25/00 4,878,832
Black Forest Funding Corp.
1,000 6.10%, 5/1/00 995,256
Bradford & Bingley Building Society
13,000 5.88%, 4/11/00 12,978,767
CBA (Delaware) Finance Inc.
5,000 6.05%, 8/14/00 4,886,562
Centric Capital Corp.
2,000 6.04%, 5/15/00 1,985,236
6,000 6.08%, 5/24/00 5,946,293
CIT Group, Inc.
3,000 6.09%, 5/16/00 2,977,162
3,000 6.10%, 6/20/00 2,959,333
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Portfolio of Investments as of March 31, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C> <C>
Citicorp
$ 3,000 6.06%, 5/10/00 $ 2,980,305
DaimlerChrysler NA Holding Corp.
5,000 6.06%, 5/22/00 4,957,075
Den Danske Corp.
1,000 5.90%, 6/21/00 986,725
Den Norske Bank
1,000 5.96%, 6/2/00 989,736
Dexia CLF Finance Co.
7,400 5.87%, 4/17/00 7,380,694
Finova Capital Corp.
3,150 6.11%, 4/27/00 3,136,100
Forrestal Funding Master Trust
4,000 5.88%, 4/17/00 3,989,547
1,500 6.05%, 4/24/00 1,494,202
1,460 5.98%, 6/1/00 1,445,206
5,000 6.09%, 8/10/00 4,889,196
GE Capital International Funding
8,000 6.04%, 4/26/00 7,966,444
General Electric Capital Corp.
2,394 5.95%, 5/19/00 2,375,008
5,000 6.12%, 8/10/00 4,888,650
1,000 6.04%, 8/15/00 977,182
General Electric Capital Services, Inc.
3,000 6.07%, 5/18/00 2,976,226
GTE Corp.
7,000 6.10%, 4/25/00 6,971,533
2,000 6.10%, 4/28/00 1,990,850
ING America Insurance Holdings, Inc.
5,000 5.96%, 5/12/00 4,966,061
1,000 5.94%, 5/24/00 991,255
Intrepid Funding Master Trust
2,000 6.12%, 5/18/00 1,984,020
2,000 6.01%, 6/6/00 1,977,963
Market Street Funding Corp.
1,000 6.10%, 5/3/00 994,578
2,000 6.10%, 5/5/00 1,988,478
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Portfolio of Investments as of March 31, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C> <C>
Marsh & McLennan Cos., Inc.
$ 1,100 5.97%, 6/6/00 $ 1,087,960
MCI WorldCom, Inc.
1,000 5.93%, 4/11/00 998,353
2,000 6.10%, 4/18/00 1,994,239
1,000 6.00%, 5/15/00 992,667
Merrill Lynch & Co., Inc.
6,000 5.87%, 4/10/00 5,991,195
3,158 5.91%, 5/8/00 3,138,818
Morgan Stanley Dean Witter & Co.
6,000 5.90%, 4/14/00 5,987,217
National Rural Utilities Cooperative Fin. Corp.
1,000 6.12%, 7/17/00 981,810
Nationwide Building Society
10,000 5.91%, 5/3/00 9,947,467
Old Line Funding Corp.
1,957 6.10%, 4/17/00 1,951,694
3,137 6.10%, 4/18/00 3,127,964
PHH Corp.
2,000 6.00%, 4/3/00 1,999,333
2,000 6.12%, 4/17/00 1,994,560
Pitney Bowes, Inc.
2,151 6.16%, 4/19/00 2,144,375
PNC Funding Corp.
3,000 6.03%, 4/14/00 2,993,467
1,000 6.14%, 5/23/00 991,131
Sears Roebuck Acceptance Corp.
6,000 6.15%, 4/18/00 5,982,575
Suntrust Banks, Inc.
3,000 6.05%, 5/12/00 2,979,329
Sweetwater Capital Corp.
1,765 6.05%, 4/7/00 1,763,220
Textron Financial Corp.
1,000 5.95%, 4/24/00 996,199
Triple A One Funding Corp.
1,166 6.11%, 4/27/00 1,160,855
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Portfolio of Investments as of March 31, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C> <C>
Variable Funding Capital Corp.
$ 2,000 6.07%, 4/20/00 $ 1,993,593
Washington Mutual Finance Corp.
3,000 6.05%, 5/30/00 2,970,254
---------------
199,121,368
-------------------------------------------------------------------------------------
Loan Participations 2.5%
Bear Stearns Companies, Inc.
1,000 6.33%, 4/3/00 1,000,000
Newell Rubbermaid, Inc.
5,000 5.945%, 4/6/00(c) 5,000,000
Warner-Lambert Co.
4,000 6.20%, 4/14/00(c) 4,000,000
---------------
10,000,000
-------------------------------------------------------------------------------------
Other Corporate Obligations 23.3%
Abbey National Treasury Services PLC, M.T.N.
8,000 5.97%, 4/24/00(b) 7,998,535
Associates Corp. of North America, M.T.N.
10,000 6.06%, 5/1/00(b) 9,998,298
Bank One Corp., M.T.N.
4,000 6.12%, 5/9/00(b) 4,000,000
Centex Home Mortgage LLC
1,000 6.21%, 4/20/00(b)(c) 1,000,000
Citicorp, M.T.N.
1,000 5.95%, 4/3/00(b) 1,000,000
Conseco Finance Vehicle Trust
2,701 6.16%, 4/17/00(b)(c) 2,700,583
DaimlerChrysler NA Holding Corp., M.T.N.
4,000 5.81%, 4/6/00(b) 3,998,632
Dover Corp.
5,000 6.13%, 5/30/00(b) 5,000,000
Ford Motor Credit Co., M.T.N.
7,000 6.06%, 5/18/00(b) 6,997,846
9,000 6.27%, 6/30/00(b) 8,995,581
General Electric Capital Corp., M.T.N.
1,000 6.05%, 5/12/00(b) 1,000,000
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Portfolio of Investments as of March 31, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C> <C>
J.P. Morgan & Co., Inc., M.T.N.
$ 4,000 5.99%, 4/17/00(b) $ 4,000,000
Restructured Asset Certificates
8,000 6.02%, 4/6/00(b)(c) 8,000,000
Security Life Of Denver
1,000 6.10%, 4/12/00(b)(c) 1,000,000
Short Term Repack Asset Trust
6,000 6.17%, 4/18/00(b)(c) 6,000,000
Strategic Money Market Trust
9,000 6.02%, 4/5/00(b) 9,000,000
7,000 6.15%, 4/13/00(b) 7,000,000
Travelers Insurance Co.
1,000 6.06%, 4/5/00(b)(c) 1,000,000
Westpac Banking Corp.
6,000 5.97%, 4/4/00(b) 5,997,713
---------------
94,687,188
-----------------------------------------------------------------------------------
Total Investments 98.7%
(amortized cost $400,888,232 (a)) 400,888,232
Other assets in excess of liabilities 1.3% 5,474,274
---------------
Net Assets 100% $ 406,362,506
---------------
---------------
</TABLE>
--------------------------------------------------------------------------------
(a) The cost of securities for federal income tax purposes is substantially the
same as for financial reporting purposes.
(b) Variable rate instruments. The maturity date presented for these instruments
is the later of the next date on which the security can be redeemed at par
or on the next date on which the rate of interest is adjusted.
(c) Private placement restricted as to resale and does not have a readily
available market; the aggregate cost of such securities is $28,700,583. The
aggregatge value $28,700,583 is approximately 7% of net assets.
M.T.N.--Medium Term Note.
10 See Notes to Financial Statements
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Portfolio of Investments as of March 31, 2000 (Unaudited) Cont'd.
The industry classification of portfolio holdings and other assets in excess of
liabilities shown as a percentage of net assets as of March 31, 2000 was as
follows:
<TABLE>
<S> <C>
Commercial Banks......................................................... 50.4%
Asset Backed Securities.................................................. 8.4
Business Credit (Finance)................................................ 7.3
Motor Vehicles........................................................... 6.0
Security Brokers & Dealers............................................... 4.8
Bank Holding Companies................................................... 4.8
Personal Credit Institutions............................................. 3.1
Telephone & Communications............................................... 3.1
Life Insurance........................................................... 2.9
Department Stores........................................................ 1.5
Fire Insurance........................................................... 1.4
Construction Machinery & Equipment....................................... 1.2
Furniture................................................................ 1.2
Pharmaceutical........................................................... 1.0
Office Machines.......................................................... 0.5
Automobile Renting & Lease............................................... 0.5
Insurance Agencies....................................................... 0.3
Aircrafts................................................................ 0.3
-----
98.7%
Other assets in excess of liabilities.................................... 1.3
-----
100.0%
-----
-----
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Statement of Assets and Liabilities (Unaudited)
<TABLE>
<CAPTION>
March 31, 2000
<S> <C> <C>
--------------------------------------------------------------------------------------
ASSETS
Investments, at amortized cost which approximates market
value $ 400,888,232
Cash 673
Receivable for Fund shares sold 26,772,881
Interest receivable 2,124,736
Prepaid expenses and other assets 72,891
--------------
Total assets $ 429,859,413
--------------
LIABILITIES
Payable for Fund shares reacquired 21,854,199
Payable for investments purchased 995,256
Dividends payable 537,431
Management fee payable 62,738
Accrued expenses 47,283
--------------
Total liabilities 23,496,907
--------------
NET ASSETS $ 406,362,506
--------------
--------------
Net assets were comprised of:
Shares of beneficial interest, at $.00001 par value $ 4,064
Paid-in capital in excess of par 406,358,442
--------------
Net assets, March 31, 2000 $ 406,362,506
--------------
--------------
Net asset value, offering and redemption price per share
($406,362,506 / 406,362,506 shares of beneficial interest
issued and outstanding) $1.00
--------------
--------------
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
March 31, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest $ 11,651,615
--------------------
Expenses
Management fee 142,498
Transfer agent's fees and expenses 151,000
Registration fees 72,000
Custodian's fees and expenses 41,000
Reports to shareholders 21,000
Legal fees and expenses 14,000
Audit fee and expenses 13,500
Trustees' fees and expenses 6,500
Miscellaneous 315
--------------------
Total expenses 461,813
--------------------
Net investment income 11,189,802
--------------------
REALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions 2,309
--------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 11,192,111
--------------------
--------------------
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Six Months Year Ended
Ended September 30,
March 31, 2000 1999
<S> <C> <C> <C>
-----------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income $ 11,189,802 $ 19,068,883
Net realized gain on investment
transactions 2,309 10,652
---------------- --------------
Net increase in net assets resulting from
operations 11,192,111 19,079,535
---------------- --------------
Dividends and distributions (Note 1) (11,192,111) (19,079,535)
---------------- --------------
Fund share transactions (at $1 per share)
Net proceeds from shares sold 2,701,345,888 4,047,261,454
Net asset value of shares issued in
reinvestment of dividends and
distributions 10,848,230 18,772,289
Cost of shares reacquired (2,700,443,373) (4,113,366,470)
---------------- --------------
Net increase (decrease) in net assets from
Fund share transactions 11,750,745 (47,332,727)
---------------- --------------
Total increase (decrease) 11,750,745 (47,332,727)
NET ASSETS
Beginning of period 394,611,761 441,944,488
---------------- --------------
End of period $ 406,362,506 $ 394,611,761
---------------- --------------
---------------- --------------
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Notes to Financial Statements (Unaudited)
Cash Accumulation Trust (the 'Trust') is registered under the Investment
Company Act of 1940 as an open-end, diversified management investment company.
The Trust consists of two series - the National Money Market Fund and the Liquid
Assets Fund (the 'Fund'). The Fund commenced investment operations on December
22, 1997, when $295,683,132 was transferred from the National Money Market Fund
to the Fund. The investment objective of the Fund is current income to the
extent consistent with the preservation of capital and liquidity. The Fund
invests primarily in a portfolio of U.S. Government obligations, financial
institution obligations and other high quality money market instruments maturing
in thirteen months or less whose ratings are within the two highest ratings
categories by a nationally recognized statistical rating organization or, if not
rated, are of comparable quality. The ability of the issuers of the securities
held by the Fund to meet its obligations may be affected by economic
developments in a specific industry or region.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Trust and the Fund in the preparation of its financial statements.
Securities Valuations: Portfolio securities are valued at amortized
cost, which approximates market value. The amortized cost method involves
valuing a security at its cost on the date of purchase and thereafter assuming a
constant amortization to maturity of any discount or premium.
Securities Transactions and Net Investment Income: Securities
transactions are recorded on the trade date. Realized gains and losses on sales
of investments are calculated on the identified cost basis. Interest income is
recorded on the accrual basis. Expenses are recorded on the accrual basis which
may require the use of certain estimates by management.
Federal Income Taxes: For Federal income tax purposes, each fund in the
Trust is treated as a separate tax paying entity. It is the intent of the Fund
to continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its taxable net income
to its shareholders. Therefore, no federal income tax provision is required.
Dividends and Distributions: The Fund declares all of its net
investment income and net realized short-term capital gains or losses, if any,
as dividends daily to its shareholders of record at the time of such
declaration. Net investment income for dividend purposes includes interest
accrued or discount earned less amortization of premium and the estimated
expenses applicable to the dividend period. Payment of dividends is made
monthly. The Fund does not expect to realize long-term capital gains or losses.
15
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Notes to Financial Statements (Unaudited) Cont'd.
Note 2. Agreements
The Trust has a management agreement with Prudential Investments Fund Management
LLC ('PIFM'). Pursuant to this agreement, PIFM has responsibility for all
investment advisory services and supervises the subadviser's performance of such
services. PIFM has entered into a subadvisory agreement with The Prudential
Investment Corporation ('PIC'); PIC furnishes investment advisory services in
connection with the management of the Trust. PIFM pays for the cost of the
subadviser's services, the compensation of officers of the Trust, occupancy and
certain clerical and bookkeeping costs of the Trust. The Trust bears all other
costs and expenses.
Under the management agreement, PIFM is reimbursed by the Fund for its
direct administrative costs and expenses, excluding overhead and profit incurred
in providing services to the Fund up to a maximum of .39% of the average daily
net assets. For the six months ended March 31, 2000, the management costs were
.07% of the Fund's average daily net assets.
The Trust has a distribution agreement with Prudential Investment
Management Services LLC ('PIMS'). No distribution or service fees are paid to
PIMS as distributor of the Fund.
PIFM, PIC and PIMS are wholly owned subsidiaries of The Prudential
Insurance Company of America.
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), a wholly owned subsidiary of PIFM,
serves as the Fund's transfer agent. During the six months ended March 31, 2000,
the Fund incurred fees of approximately $144,100 for the services of PMFS. As of
March 31, 2000 $26,300 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to nonaffiliates.
16
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
Six Months Year December 22,
Ended Ended 1997(a) Through
March 31, September 30, September 30,
2000 1999 1998
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period $ 1.00 $ 1.00 $ 1.00
---------- ------------- ---------------
Net investment income and net
realized gains .03 .05 .04
Dividends and distributions to
shareholders (.03) (.05) (.04)
---------- ------------- ---------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
---------- ------------- ---------------
---------- ------------- ---------------
TOTAL RETURN:(b) 2.82% 5.05% 4.52%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $406,363 $ 394,612 $ 441,944
Average net assets (000) $395,775 $ 386,144 $ 374,141
Ratios to average net assets:
Expenses .23%(c) .27% .21%(c)
Net investment income 5.65%(c) 4.94% 5.53%(c)
</TABLE>
------------------------------
(a) Commencement of investment operations.
(b) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes reinvestment
of dividends and distributions. Total returns for less than a full year are
not annualized.
(c) Annualized.
See Notes to Financial Statements 17
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Prudential Mutual Fund Family
Prudential offers a broad range of mutual funds designed
to meet your individual needs. For information about
these funds, contact your financial adviser or call us at
(800) 225-1852. Read the prospectus carefully before you
invest or send money.
STOCK FUNDS
Prudential Emerging Growth Fund, Inc.
Prudential Equity Fund, Inc.
Prudential Equity Income Fund
The Prudential Investment Portfolios, Inc.
Prudential Jennison Growth Fund
Prudential Jennison Growth & Income Fund
Prudential Real Estate Securities Fund
Prudential Sector Funds, Inc.
Prudential Financial Services Fund
Prudential Health Sciences Fund
Prudential Technology Fund
Prudential Utility Fund
Prudential Small-Cap Quantum Fund, Inc.
Prudential Small Company Value Fund, Inc.
Prudential Stock Index Fund
Prudential Tax-Managed Funds
Prudential Tax-Managed Equity Fund
Prudential 20/20 Focus Fund
Nicholas-Applegate Fund, Inc.
Nicholas-Applegate Growth Equity Fund
Target Funds
Large Capitalization Growth Fund
Large Capitalization Value Fund
Small Capitalization Growth Fund
Small Capitalization Value Fund
Asset Allocation/Balanced Funds
Prudential Balanced Fund
Prudential Diversified Funds
Conservative Growth Fund
Moderate Growth Fund
High Growth Fund
The Prudential Investment Portfolios, Inc.
Prudential Active Balanced Fund
GLOBAL FUNDS
Global Stock Funds
Prudential Developing Markets Fund
Prudential Developing Markets Equity Fund
Prudential Latin America Equity Fund
Prudential Europe Growth Fund, Inc.
Prudential Global Genesis Fund, Inc.
Prudential Natural Resources Fund, Inc.
Prudential Pacific Growth Fund, Inc.
Prudential World Fund, Inc.
Prudential Global Growth Fund
Prudential International Value Fund
Prudential Jennison International Growth Fund
Global Utility Fund, Inc.
Target Funds
International Equity Fund
Global Bond Funds
Prudential Global Total Return Fund, Inc.
Prudential International Bond Fund, Inc.
<PAGE>
www.prudential.com (800) 225-1852
BOND FUNDS
Taxable Bond Funds
Prudential Diversified Bond Fund, Inc.
Prudential Government Income Fund, Inc.
Prudential Government Securities Trust
Short-Intermediate Term Series
Prudential High Yield Fund, Inc.
Prudential High Yield Total Return Fund, Inc.
Prudential Structured Maturity Fund, Inc.
Income Portfolio
Target Funds
Total Return Bond Fund
Tax-Exempt Bond Funds
Prudential California Municipal Fund
California Series
California Income Series
Prudential Municipal Bond Fund
High Income Series
Insured Series
Prudential Municipal Series Fund
Florida Series
Massachusetts Series
New Jersey Series
New York Series
North Carolina Series
Ohio Series
Pennsylvania Series
Prudential National Municipals Fund, Inc.
MONEY MARKET FUNDS
Taxable Money Market Funds
Cash Accumulation Trust
Liquid Assets Fund
National Money Market Fund
Prudential Government Securities Trust
Money Market Series
U.S. Treasury Money Market Series
Prudential Special Money Market Fund, Inc.
Money Market Series
Prudential MoneyMart Assets, Inc.
Tax-Free Money Market Funds
Prudential Tax-Free Money Fund, Inc.
Prudential California Municipal Fund
California Money Market Series
Prudential Municipal Series Fund
Connecticut Money Market Series
Massachusetts Money Market Series
New Jersey Money Market Series
New York Money Market Series
Command Funds
Command Money Fund
Command Government Fund
Command Tax-Free Fund
Institutional Money Market Funds
Prudential Institutional Liquidity Portfolio, Inc.
Institutional Money Market Series
<PAGE>
Cash Accumulation Trust Liquid Assets Fund
Getting the Most From Your Prudential Mutual Fund
When you invest through Prudential Mutual Funds, you
receive financial advice from a Prudential Securities
Financial Advisor or Pruco Securities registered
representative. Your advisor or representative can
provide you with the following services:
There's No Reward Without Risk; but Is This Risk Worth
It?
Your financial advisor or registered representative can
help you match the reward you seek with the risk you can
tolerate. Risk can be difficult to gauge--sometimes even
the simplest investments bear surprising risks. The
educated investor knows that markets seldom move in just
one direction. There are times when a market sector or
asset class will lose value or provide little in the way
of total return. Managing your own expectations is easier
with help from someone who understands the markets and
who knows you!
Keeping Up With the Joneses
A financial advisor or registered representative can help
you wade through the numerous available mutual funds to
find the ones that fit your individual investment profile
and risk tolerance. While the newspapers and popular
magazines are full of advice about investing, they are
aimed at generic groups of people or representative
individuals--not at you personally. Your financial advisor
or registered representative will review your investment
objectives with you. This means you can make financial
decisions based on the assets and liabilities in your
current portfolio and your risk tolerance--not just based
on the current investment fad.
Buy Low, Sell High
Buying at the top of a market cycle and selling at the
bottom are among the most common investor mistakes. But
sometimes it's difficult to hold on to an investment when
it's losing value every month. Your financial advisor or
registered representative can answer questions when
you're confused or worried about your investment, and
should remind you that you're investing for the long haul.
<PAGE>
www.prudential.com (800) 225-1852
For More Information
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
Trustees
Delayne Dedrick Gold
Robert F. Gunia
Robert E. LaBlanc
Robin B. Smith
Stephen Stoneburn
John R. Strangfeld
Nancy H. Teeters
Clay T. Whitehead
Officers
John R. Strangfeld, President
Robert F. Gunia, Vice President
David R. Odenath, Jr., Vice President
Grace C. Torres, Treasurer
Robert C. Rosselot, Secretary
Stephen M. Ungerman, Assistant Treasurer
William V. Healey, Assistant Secretary
Manager
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07102-3777
Distributor
Prudential Investment Management Services LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services LLC
194 Wood Avenue South
Iselin, NJ 08830
Independent Accountants
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, NY 10004
Cusip Number 147541502
The views expressed in this report and information about
the Fund's portfolio holdings are for the period covered
by this report and are subject to change thereafter.
The accompanying financial statements as
of March 31, 2000, were not audited and, accordingly, no
opinion is expressed on them.
<PAGE>
BULK RATE
U.S. POSTAGE
PAID
Permit 6807
New York, NY
(LOGO)
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
MF175E2 147541502
(LOGO) Printed on Recycled Paper
<PAGE>
SEMIANNUAL REPORT MARCH 31, 2000
Cash Accumulation Trust/
National Money Market Fund
Fund Type Money market
Objective Current income to the extent consistent with
preservation of capital and liquidity
(GRAPHIC)
This report is not authorized for distribution to
prospective investors unless preceded or accompanied by a
current prospectus.
(LOGO)
<PAGE>
Build on the Rock
Investment Goals and Style
National Money Market Fund--one of two series of Cash
Accumulation Trust--seeks current income to the extent
consistent with preservation of capital and liquidity.
The Fund is a diversified portfolio of high-quality, U.S.
dollar-denominated money market securities issued by the
U.S. government and its agencies, major corporations, and
commercial banks of the United States and foreign
countries. Maturities can range from one day to 13
months. We purchase securities rated in one of the two
highest rating categories by at least two major
independent rating agencies or, if not rated, deemed to
be of equivalent quality by our credit research staff.
There can be no assurance that the Fund will achieve its
investment objective.
Money Market Fund Yield Comparison
(GRAPH)
<PAGE>
www.prudential.com (800) 225-1852
Performance at a Glance
Fund Facts As of 3/31/00
7-Day Net Asset Weighted Avg. Net Assets
Current Yld. Value (NAV) Mat. (WAM) (Millions)
National Money
Market Fund 5.48% $1.00 61 Days $380.2
iMoneyNet, Inc.
(1st & 2nd Tier--
General Purpose-
Retail) Average* 5.29% $1.00 52 Days N/A
Note: Yields will fluctuate from time to time, and past
performance is not indicative of future results. An
investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve
the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
*iMoneyNet, Inc. reports a seven-day current yield, NAV,
and WAM on Tuesdays. This is the data of all funds in the
iMoneyNet, Inc. Money Fund (1st & 2nd Tier--General
Purpose-Retail) category as of March 28, 2000, the
closest date to the end of our reporting period.
Weighted Average Maturity Compared to the Average Money
Market Fund
(GRAPH)
1
<PAGE>
Cash Accumulation Trust National Money Market Fund
Message From the Fund's President May 16, 2000
Dear Shareholder,
Prudential's Money Markets Sector Team identified and
took advantage of good investment opportunities that
emerged as money market yields climbed during our six-
month review period that ended on March 31, 2000. The
team employed credit research, interest-rate analysis,
and relative value analysis that enabled National Money
Market Fund--one of two series of Cash Accumulation Trust--
to provide a competitive yield and a stable $1.00 net
asset value.
The Fund's seven-day current yield was 5.48% on March
31, 2000, compared with 5.29% for the average comparable
money market fund tracked by iMoneyNet, Inc. The
following report takes a closer look at developments in
the money markets, and explains how the Fund was
positioned accordingly.
HIGH-QUALITY INVESTMENTS CAN HELP REDUCE RISK
Having a conservative, high-quality investment
alternative, such as a money market fund, makes good
sense for investors who are concerned about volatile
conditions in the financial markets.
Indeed, investors may do well to consider allocating some
of their assets to a money market fund as part of their
overall investment strategy. For any of life's unexpected
events, it is reassuring to have quick access to your
money and an investment vehicle that provides stability
of principal and liquidity.
Thank you for your continued confidence in Prudential
mutual funds.
Sincerely,
John R. Strangfeld, President
Cash Accumulation Trust/National Money Market Fund
2
<PAGE>
www.prudential.com (800) 225-1852
Investment Adviser's Report
Dear Shareholder,
Shortly after our six-month review period began on
October 1, 1999, Federal Reserve policy makers announced
they were leaning toward increasing short-term interest
rates again. The Fed had already hiked rates twice in
1999 to cool off the economy. However, the central
bankers remained concerned that continued strong economic
growth and rising oil prices could drive inflation
higher. In anticipation of another rate increase,
investors pushed up yields on money market securities,
which caused their prices to fall.
Good buying opportunities emerged in late 1999
During October, we bought securities that matured at the
end of 1999. These purchases prepared the Fund to
accommodate normal year-end shareholder liquidity needs
and any additional withdrawals that might occur out of
concern that computers could malfunction or shut down
when their internal dates switched from 1999 to 2000.
In hindsight, it would have been more advantageous to
invest in securities with even shorter maturities in
October. The Fed raised the federal funds rate (the rate
U.S. banks charge each other for overnight loans) by a
quarter of a percentage point to 5.50% in mid-November.
It also raised its discount rate on loans to banks that
borrow from the Federal Reserve system to 5.00% from
4.75%. After this change in monetary policy, money market
yields continued to climb throughout the remainder of the
year. In December, we were able to buy attractively
priced securities maturing in February and March 2000.
These purchases boosted the Fund's yield and allowed us
to avoid having to invest during the lower-interest-rate
environment that typically occurs in early January.
Our barbell strategy locked in attractive yields
We adopted a barbell strategy early in 2000 by purchasing
very short-term money market instruments and securities
maturing in one year. Yields on one-year securities were
substantially higher than yields on securities maturing
in three months or less. This large differential
reflected the fact
3
<PAGE>
Cash Accumulation Trust National Money Market Fund
Investment Adviser's Report
that many investors expected yields on one-year
securities to be much
higher later in the year as the Fed continued to boost
rates.
The barbell approach allowed us to reinvest money from
very short-term securities in higher-yielding money
market instruments that became available after each of
the Fed's two rate hikes that occurred during the first
three months of 2000.
The central bank's first move came on February 2, when it
increased the federal funds rate by another quarter of a percentage
point to 5.75% and the discount rate to 5.25%. Some money
market participants had expected a half-point increase
that month. We believed, however, that the Fed did not
want to make such an aggressive change in monetary policy
at that time. An additional quarter-point rate hike occurred on March
21, which lifted the federal funds rate to 6.00% and the
discount rate to 5.50%.
Looking Ahead--We expect more short-term rate hikes
The U.S. economy grew at an annual pace of more than 5.0%
in the first three months of 2000, powered by the largest
increase in consumer spending in 17 years. While this is
slower than the 7.3% annual pace of the final quarter of
1999, the longest economic expansion in the history of
the United States remains very strong. Moreover, labor
costs rose for U.S. businesses at the fastest pace in
more than 10 years in the first quarter of 2000. There is
also evidence that these cost pressures are being passed
along to consumers in the form of higher prices. This
combination of brisk economic growth and rising inflation
led the Fed in May to raise the federal funds rate and
the discount rate by half of a percentage point to 6.50% and
6.00%, respectively. Unless there is significant
moderation in economic activity, the Fed has
hinted that more interest-rate increases will be
forthcoming.
Prudential Money Markets Sector Team
4
<PAGE>
Cash Accumulation Trust National Money Market Fund
Portfolio of Investments as of March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C> <C>
-----------------------------------------------------------------------------------------
Bank Notes 11.7%
American Express Centurion Bank
$ 2,000 6.36%, 4/10/00(b) $ 2,000,000
Comerica Bank
1,000 5.93%, 4/3/00(b) 999,706
5,000 5.88875%, 4/13/00(b) 4,999,359
First Union National Bank
12,400 6.29%, 5/17/00(b) 12,410,607
KeyBank NA
1,000 6.09%, 4/17/00(b) 1,000,216
3,000 6.05%, 6/14/00(b) 2,999,642
1,000 6.17%, 6/26/00(b) 999,885
National City Bank
4,700 6.14%, 4/10/00(b) 4,701,791
7,000 5.99875%, 4/14/00(b) 6,998,413
7,400 6.55%, 1/31/01 7,397,062
--------------
44,506,681
-------------------------------------------------------------------------------------
Certificates Of Deposit-Domestic 2.2%
Chase Manhattan Bank
6,000 5.365%, 5/22/00 5,999,517
U.S. Bank, NA
2,500 6.02%, 4/19/00(b) 2,500,277
--------------
8,499,794
-------------------------------------------------------------------------------------
Certificates Of Deposit-Yankee 6.9%
Bank of Nova Scotia
2,500 6.65%, 2/1/01 2,499,005
Ontario Province Canada
1,000 6.125%, 6/28/00 1,000,974
Rabobank Nederland
5,000 6.06%, 4/27/00 4,978,117
Westpac Banking Corp.
9,200 6.54%, 1/18/01 9,196,503
8,600 6.52%, 1/29/01 8,596,609
--------------
26,271,208
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Cash Accumulation Trust National Money Market Fund
Portfolio of Investments as of March 31, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C> <C>
Commercial Paper 41.5%
American General Finance Corp.
$ 10,000 6.07%, 5/19/00 $ 9,919,067
American Home Products Corp.
9,700 6.08%, 5/8/00 9,639,386
Baus Funding LLC
10,500 6.07%, 5/16/00 10,420,331
CIT Group, Inc.
3,000 6.09%, 5/16/00 2,977,163
Citicorp
3,000 6.06%, 5/10/00 2,980,305
Dover Corp.
8,000 6.13%, 5/30/00(b) 8,000,000
Equitable Resources Inc.
1,169 6.10%, 4/12/00 1,166,821
Finova Capital Corp.
5,000 6.125%, 4/28/00 4,977,031
General Electric Capital Corp.
16,700 6.05%, 5/23/00 16,554,061
Goldman Sachs Group LP
10,000 6.02%, 4/26/00 10,000,000
Homeside Lending, Inc.
10,500 6.07%, 5/5/00 10,439,806
Household International, Inc.
3,000 6.11%, 4/26/00(c) (cost $2,987,271;
date purchased 3/22/00) 2,987,271
Market Street Funding Corp.
3,984 6.10%, 5/8/00 3,959,023
MCI WorldCom, Inc.
10,000 6.09%, 4/20/00 9,967,858
PHH Corp.
2,000 6.00%, 4/3/00 1,999,333
9,315 6.00%, 4/4/00 9,310,342
PNC Funding Corp.
3,000 6.14%, 5/23/00 2,973,393
Salomon Smith Barney Holdings, Inc.
5,000 6.07%, 5/18/00 4,960,376
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Cash Accumulation Trust National Money Market Fund
Portfolio of Investments as of March 31, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C> <C>
Sweetwater Capital Corp.
$ 2,363 6.10%, 4/24/00 $ 2,353,791
Target Corp.
9,100 6.07%, 4/14/00 9,080,053
Unifunding, Inc.
10,000 6.08%, 5/8/00 9,937,511
Variable Funding Capital Corp.
4,000 6.10%, 5/22/00 3,965,433
Washington Mutual Finance Corp.
3,000 6.05%, 5/30/00(c) (cost $2,970,254;
date purchased 3/3/00) 2,970,254
Wood Street Funding Corp.
6,000 6.10%, 5/2/00 5,968,483
--------------
157,507,092
-------------------------------------------------------------------------------------
Euro Time Deposit-Yankee 3.9%
Halifax PLC
14,655 6.34%, 4/3/00 14,655,000
-------------------------------------------------------------------------------------
Other Corporate Obligations 30.4%
Associates Corp. of North America, M.T.N.
9,700 6.06%, 5/1/00(b) 9,698,349
Bank One Corp., M.T.N.
4,000 6.16%, 5/22/00(b) 4,000,000
3,100 6.20%, 6/13/00(b) 3,100,500
Chrysler Financial Co., LLC, M.T.N.
2,000 6.13%, 12/11/00 1,999,153
Citicorp, M.T.N.
1,000 5.95%, 4/3/00(b) 1,000,000
Commercial Credit Co.
900 6.00%, 4/15/00 900,096
9,098 5.75%, 7/15/00 9,098,207
Conseco Finance Vehicle Trust
2,701 6.16375%, 4/17/00(b)(c) (cost $2,700,583;
date purchased 12/16/99) 2,700,583
DaimlerChrysler NA Holding Corp., M.T.N.
9,000 5.81%, 4/6/00(b) 8,996,923
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Cash Accumulation Trust National Money Market Fund
Portfolio of Investments as of March 31, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C> <C>
First Chicago Corp., M.T.N.
$ 11,200 6.15%, 5/18/00 $ 11,201,898
First Union Corp.
3,500 6.60%, 6/15/00 3,506,735
Ford Motor Credit Co., M.T.N.
9,000 6.0575%, 5/18/00(b) 8,997,231
3,800 6.27%, 6/30/00(b) 3,798,134
4,400 5.99%, 2/27/01(b) 4,371,565
General Electric Capital Corp.
3,000 5.92%, 4/3/01 2,975,139
International Lease Finance Corp.
3,000 6.20%, 5/1/00 3,001,316
J.P. Morgan & Co., Inc., M.T.N.
19,300 5.99375%, 4/17/00(b) 19,300,000
Paccar Financial Corp., M.T.N.
3,000 6.08%, 7/12/00 3,002,675
Student Loan Marketing Assn., M.T.N.
4,000 6.535%, 5/3/00(b) 4,005,224
U.S. Bancorp, M.T.N.
10,000 6.09%, 4/20/00(b) 9,997,685
--------------
115,651,413
--------------
Total Investments 96.6%
(amortized cost $367,091,188(a)) 367,091,188
Other assets in excess of liabilities 3.4% 13,097,844
--------------
Net Assets 100% $ 380,189,032
--------------
--------------
</TABLE>
------------------------------
(a) The cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
(b) Variable rate instrument. The maturity date presented for these instruments
is the later of the next date on which the security can be redeemed at par
or the next date on which the rate of interest is adjusted.
(c) Indicates a restricted security; the aggregate cost and value is $8,658,108;
approximately 2.3% of net assets.
M.T.N.--Medium Term Note.
8 See Notes to Financial Statements
<PAGE>
Cash Accumulation Trust National Money Market Fund
Portfolio of Investments as of March 31, 2000 (Unaudited) Cont'd.
The industry classification of portfolio holdings and other assets in excess of
liabilities shown as a percentage of net assets as of March 31, 2000 was as
follows:
<TABLE>
<S> <C> <C>
Commercial Banks 28.1%
Bank Holding Companies-Domestic 15.2
Personal Credit Institutions 9.8
Motor Vehicle Parts 8.6
Short-Term Business Credit 7.5
Asset-Backed Securities 5.2
Security Brokers & Dealers 4.1
Mortgage Banking 2.9
Telecommunications 2.7
Pharmaceutical 2.7
Auto Rental & Leasing 2.6
Variety Stores 2.5
Construction Machinery & Equipment 2.2
Federal Credit Agencies 1.1
Equipment Rental & Leasing 0.8
Natural Gas Transportation 0.3
Canadian Government 0.3
-----
96.6%
Other assets in excess of liabilities 3.4
-----
100.0%
-----
-----
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Cash Accumulation Trust National Money Market Fund
Statement of Assets and Liabilities (Unaudited)
<TABLE>
<CAPTION>
March 31, 2000
<S> <C> <C>
---------------------------------------------------------------------------------------
ASSETS
Investments, at amortized cost which approximates market value $ 367,091,188
Cash 357
Receivable for Fund shares sold 27,963,788
Interest receivable 1,684,661
Prepaid expenses and other assets 79,354
--------------
Total assets 396,819,348
--------------
LIABILITIES
Payable for Fund shares reacquired 15,843,239
Dividends payable 460,767
Accrued expenses 177,004
Management fee payable 130,883
Distribution fee payable 18,423
--------------
Total liabilities 16,630,316
--------------
NET ASSETS $ 380,189,032
--------------
--------------
Net assets were comprised of:
Shares of beneficial interest, at $.00001 par value $ 3,802
Paid-in capital in excess of par 380,185,230
--------------
Net assets, March 31, 2000 $ 380,189,032
--------------
--------------
Net asset value, offering price and redemption price per share
($380,189,032 / 380,189,032 shares of beneficial interest
issued and outstanding $1.00
--------------
--------------
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Cash Accumulation Trust National Money Market Fund
Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
March 31, 2000
<S> <C> <C>
---------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest $ 11,422,894
--------------
Expenses
Management fee 762,521
Distribution fee 195,518
Registration fees 145,000
Transfer agent's fees and expenses 128,000
Custodian's fees and expenses 39,000
Reports to shareholders 35,000
Legal fees and expenses 15,000
Audit fees and expenses 13,500
Trustees' fees and expenses 6,500
Miscellaneous 1,225
--------------
Total expenses 1,341,264
--------------
Net investment income 10,081,630
--------------
REALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions 247
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 10,081,877
--------------
--------------
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Cash Accumulation Trust National Money Market Fund
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
March 31, 2000 September 30, 1999
<S> <C> <C> <C>
-----------------------------------------------------------------------------------
DECREASE IN NET ASSETS
Operations
Net investment income $ 10,081,630 $ 18,795,764
Net realized gain on investment
transactions 247 21,374
--------------- ------------------
Net increase in net assets resulting
from operations 10,081,877 18,817,138
--------------- ------------------
Dividends and distributions to shareholders
(Note 1) (10,081,877) (18,817,138)
--------------- ------------------
Fund share transactions (at $1 per share)
Net proceeds from shares sold 2,162,121,079 3,676,378,022
Net asset value of shares issued to
shareholders in reinvestment of
dividends and distributions 9,766,228 18,433,584
Cost of shares reacquired (2,195,263,987) (3,798,533,694)
--------------- ------------------
Net increase (decrease) in net assets from
Fund share transactions (23,376,680) (103,722,088)
--------------- ------------------
Total decrease (23,376,680) (103,722,088)
NET ASSETS
Beginning of period 403,565,712 507,287,800
--------------- ------------------
End of period $ 380,189,032 $ 403,565,712
--------------- ------------------
--------------- ------------------
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Cash Accumulation Trust National Money Market Fund
Notes to Financial Statements (Unaudited)
Cash Accumulation Trust (the 'Trust') is registered under the Investment Company
Act of 1940 as an open-end, diversified management investment company. The Trust
consists of two series--the National Money Market Fund (the 'Fund') and the
Liquid Assets Fund. The investment objective of the Fund is current income to
the extent consistent with the preservation of capital and liquidity. The Fund
invests primarily in a portfolio of U.S. Government obligations, financial
institution obligations and other high quality money market instruments maturing
in thirteen months or less whose ratings are within the two highest ratings
categories by a nationally recognized statistical rating organization or, if not
rated, are of comparable quality. The ability of the issuers of the securities
held by the Fund to meet its obligations may be affected by economic
developments in a specific industry or region.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Trust and the Fund in the preparation of its financial statements.
Securities Valuations: Portfolio securities are valued at amortized
cost, which approximates market value. The amortized cost method involves
valuing a security at its cost on the date of purchase and thereafter assuming a
constant amortization to maturity of any discount or premium.
Securities Transactions and Net Investment Income: Securities
transactions are recorded on the trade date. Realized gains and losses on sales
of investments are calculated on the identified cost basis. Interest income is
recorded on the accrual basis. Expenses are recorded on the accrual basis, which
may require the use of certain estimates by management.
Federal Income Taxes: For federal income tax purposes, each fund in the
Trust is treated as a separate taxpaying entity. It is the intent of the Fund to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its taxable net income
to its shareholders. Therefore, no federal income tax provision is required.
Dividends and Distributions: The Fund declares all of its net
investment income and net realized short-term capital gains or losses, if any,
as dividends daily to its shareholders of record at the time of such
declaration. Net investment income for dividend purposes includes interest
accrued or discount earned less amortization of premium and the estimated
expenses applicable to the dividend period. The Fund does not expect to realize
long-term capital gains or losses.
13
<PAGE>
Cash Accumulation Trust National Money Market Fund
Notes to Financial Statements (Unaudited) Cont'd.
Note 2. Agreements
The Trust has a management agreement with Prudential Investments Fund Management
LLC ('PIFM'). Pursuant to this agreement, PIFM has responsibility for all
investment advisory services and supervises the subadviser's performance of such
services. PIFM has entered into a subadvisory agreement with The Prudential
Investment Corporation ('PIC'); PIC furnishes investment advisory services in
connection with the management of the Trust. PIFM pays for the cost of the
subadviser's services, the compensation of officers of the Trust, occupancy and
certain clerical and bookkeeping costs of the Fund. The Trust bears all other
costs and expenses.
The management fee paid PIFM is computed daily and payable monthly, at an
annual rate of .39% of the Fund's average daily net assets up to and including
$1 billion, .375% of the next $500 million, .35% of the next $500 million and
.325% of the Fund's average daily net assets in excess of $2 billion.
The Trust has a distribution agreement with Prudential Investment
Management Services LLC ('PIMS'). The Fund compensates PIMS for distributing and
servicing the Fund's shares pursuant to the plan of distribution at an annual
rate of .10 of 1% of the average daily net assets of the shares, regardless of
expenses actually incurred by them. The distribution fees are accrued daily and
payable monthly.
PIFM, PIC and PIMS are wholly owned subsidiaries of The Prudential
Insurance Company of America.
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), a wholly owned subsidiary of PIFM,
serves as the Fund's transfer agent and during the six months ended March 31,
2000, the Fund incurred fees of approximately $122,100 for the services of PMFS.
As of March 31, 2000, approximately $21,100 of such fees were due to PMFS.
Transfer agent fees and expenses in the Statement of Operations include certain
out-of-pocket expenses paid to nonaffiliates.
14
<PAGE>
Cash Accumulation Trust National Money Market Fund
Financial
Highlights
<PAGE>
Cash Accumulation Trust National Money Market Fund
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
March 31, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 1.00
----------------
Net investment income .03
Dividends and distributions to shareholders (.03)
----------------
Net asset value, end of period $ 1.00
----------------
----------------
TOTAL RETURN(a) 2.58%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $380,189
Ratios to average net assets:
Expenses, including distribution fee 0.69%(b)
Expenses, excluding distribution fees 0.59%(b)
Net investment income 5.16%(b)
</TABLE>
------------------------------
(a) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes reinvestment
of dividends and distributions. Total return for periods of less than a full
year are not annualized.
(b) Annualized.
16 See Notes to Financial Statements
<PAGE>
Cash Accumulation Trust National Money Market Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Year Ended March 31,
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------
1999 1998 1997 1996 1995
------------------------------------------------------------------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- ---
0.05 0.05 0.05 0.05 0.05
(0.05) (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- -------- -------- ---
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- ---
-------- -------- -------- -------- -------- ---
4.6% 5.2% 5.0% 5.0% 5.2%
$403,566 $507,288 $702,003 $652,327 $685,228
0.68% 0.62% 0.65% 0.69% 0.69%
0.58% 0.52% 0.55% 0.59% 0.59%
4.56% 5.05% 4.89% 4.86% 5.15%
</TABLE>
See Notes to Financial Statements 17
<PAGE>
Cash Accumulation Trust National Money Market Fund
Prudential Mutual Fund Family
Prudential offers a broad range of mutual funds designed
to meet your individual needs. For information about
these funds, contact your financial adviser or call us at
(800) 225-1852. Read the prospectus carefully before you
invest or send money.
STOCK FUNDS
Prudential Emerging Growth Fund, Inc.
Prudential Equity Fund, Inc.
Prudential Equity Income Fund
The Prudential Investment Portfolios, Inc.
Prudential Jennison Growth Fund
Prudential Jennison Growth & Income Fund
Prudential Real Estate Securities Fund
Prudential Sector Funds, Inc.
Prudential Financial Services Fund
Prudential Health Sciences Fund
Prudential Technology Fund
Prudential Utility Fund
Prudential Small-Cap Quantum Fund, Inc.
Prudential Small Company Value Fund, Inc.
Prudential Stock Index Fund
Prudential Tax-Managed Funds
Prudential Tax-Managed Equity Fund
Prudential 20/20 Focus Fund
Nicholas-Applegate Fund, Inc.
Nicholas-Applegate Growth Equity Fund
Target Funds
Large Capitalization Growth Fund
Large Capitalization Value Fund
Small Capitalization Growth Fund
Small Capitalization Value Fund
Asset Allocation/Balanced Funds
Prudential Balanced Fund
Prudential Diversified Funds
Conservative Growth Fund
Moderate Growth Fund
High Growth Fund
The Prudential Investment Portfolios, Inc.
Prudential Active Balanced Fund
GLOBAL FUNDS
Global Stock Funds
Prudential Developing Markets Fund
Prudential Developing Markets Equity Fund
Prudential Latin America Equity Fund
Prudential Europe Growth Fund, Inc.
Prudential Global Genesis Fund, Inc.
Prudential Natural Resources Fund, Inc.
Prudential Pacific Growth Fund, Inc.
Prudential World Fund, Inc.
Prudential Global Growth Fund
Prudential International Value Fund
Prudential Jennison International Growth Fund
Global Utility Fund, Inc.
Target Funds
International Equity Fund
Global Bond Funds
Prudential Global Total Return Fund, Inc.
Prudential International Bond Fund, Inc.
<PAGE>
www.prudential.com (800) 225-1852
BOND FUNDS
Taxable Bond Funds
Prudential Diversified Bond Fund, Inc.
Prudential Government Income Fund, Inc.
Prudential Government Securities Trust
Short-Intermediate Term Series
Prudential High Yield Fund, Inc.
Prudential High Yield Total Return Fund, Inc.
Prudential Structured Maturity Fund, Inc.
Income Portfolio
Target Funds
Total Return Bond Fund
Tax-Exempt Bond Funds
Prudential California Municipal Fund
California Series
California Income Series
Prudential Municipal Bond Fund
High Income Series
Insured Series
Prudential Municipal Series Fund
Florida Series
Massachusetts Series
New Jersey Series
New York Series
North Carolina Series
Ohio Series
Pennsylvania Series
Prudential National Municipals Fund, Inc.
MONEY MARKET FUNDS
Taxable Money Market Funds
Cash Accumulation Trust
Liquid Assets Fund
National Money Market Fund
Prudential Government Securities Trust
Money Market Series
U.S. Treasury Money Market Series
Prudential Special Money Market Fund, Inc.
Money Market Series
Prudential MoneyMart Assets, Inc.
Tax-Free Money Market Funds
Prudential Tax-Free Money Fund, Inc.
Prudential California Municipal Fund
California Money Market Series
Prudential Municipal Series Fund
Connecticut Money Market Series
Massachusetts Money Market Series
New Jersey Money Market Series
New York Money Market Series
Command Funds
Command Money Fund
Command Government Fund
Command Tax-Free Fund
Institutional Money Market Funds
Prudential Institutional Liquidity Portfolio, Inc.
Institutional Money Market Series
<PAGE>
Cash Accumulation Trust National Money Market Fund
Getting the Most From Your Prudential Mutual Fund
When you invest through Prudential Mutual Funds, you
receive financial advice from a Prudential Securities
Financial Advisor or Pruco Securities registered
representative. Your advisor or representative can
provide you with the following services:
There's No Reward Without Risk; but Is This Risk Worth
It?
Your financial advisor or registered representative can
help you match the reward you seek with the risk you can
tolerate. Risk can be difficult to gauge--sometimes even
the simplest investments bear surprising risks. The
educated investor knows that markets seldom move in just
one direction. There are times when a market sector or
asset class will lose value or provide little in the way
of total return. Managing your own expectations is easier
with help from someone who understands the markets and
who knows you!
Keeping Up With the Joneses
A financial advisor or registered representative can help
you wade through the numerous available mutual funds to
find the ones that fit your individual investment profile
and risk tolerance. While the newspapers and popular
magazines are full of advice about investing, they are
aimed at generic groups of people or representative
individuals--not at you personally. Your financial advisor
or registered representative will review your investment
objectives with you. This means you can make financial
decisions based on the assets and liabilities in your
current portfolio and your risk tolerance--not just based
on the current investment fad.
Buy Low, Sell High
Buying at the top of a market cycle and selling at the
bottom are among the most common investor mistakes. But
sometimes it's difficult to hold on to an investment when
it's losing value every month. Your financial advisor or
registered representative can answer questions when
you're confused or worried about your investment, and
should remind you that you're investing for the long
haul.
<PAGE>
www.prudential.com (800) 225-1852
For More Information
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
Trustees
Delayne Dedrick Gold
Robert F. Gunia
Robert E. LaBlanc
Robin B. Smith
Stephen Stoneburn
John R. Strangfeld
Nancy H. Teeters
Clay T. Whitehead
Officers
John R. Strangfeld, President
Robert F. Gunia, Vice President
David R. Odenath, Jr., Vice President
Grace C. Torres, Treasurer
Robert C. Rosselot, Secretary
Stephen M. Ungerman, Assistant Treasurer
William V. Healey, Assistant Secretary
Manager
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07102-3777
Distributor
Prudential Investment Management Services LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services LLC
194 Wood Avenue South
Iselin, NJ 08830
Independent Accountants
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, NY 10004
Cusip Number 147541106
The views expressed in this report and information about
the Fund's portfolio holdings are for the period covered
by this report and are subject to change thereafter.
The accompanying financial statements as
of March 31, 2000, were not audited and, accordingly, no
opinion is expressed on them.
<PAGE>
BULK RATE
U.S. POSTAGE
PAID
Permit 6807
New York, NY
(LOGO)
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
MF178E2 147541106
(LOGO) Printed on Recycled Paper
