-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GbG9nS6a9gilXKcuANBkRGzYMe7BicgWg0uiQVOXR1JTi+g9+zH7jwc+NR+rGBXV 65k6wISDt1giBtAzG3O96Q== 0000876409-97-000043.txt : 19970819 0000876409-97-000043.hdr.sgml : 19970819 ACCESSION NUMBER: 0000876409-97-000043 CONFORMED SUBMISSION TYPE: N14AE24 PUBLIC DOCUMENT COUNT: 9 FILED AS OF DATE: 19970815 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTENNIAL MONEY MARKET TRUST CENTRAL INDEX KEY: 0000312538 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 840856138 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N14AE24 SEC ACT: 1933 Act SEC FILE NUMBER: 333-33811 FILM NUMBER: 97665466 BUSINESS ADDRESS: STREET 1: 3410 S GALENA ST CITY: DENVER STATE: CO ZIP: 80231 BUSINESS PHONE: 3036713200 MAIL ADDRESS: STREET 2: 3410 SOUTH GALENA STREET CITY: DENVER STATE: CO ZIP: 80231 FORMER COMPANY: FORMER CONFORMED NAME: DAILY CASH INSTITUTIONAL TRUST DATE OF NAME CHANGE: 19810624 N14AE24 1 PROXY DAILY CASH, PROSPECTUS CENT. MONEY MKT. As filed with the Securities and Exchange Commission on August 15, 1997 Registration No. 811-2945 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-14 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/ PRE-EFFECTIVE AMENDMENT NO. / / POST-EFFECTIVE AMENDMENT NO. / / CENTENNIAL MONEY MARKET TRUST ----------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) 6803 South Tucson Way, Englewood, Colorado 80112 ----------------------------------------------------------------- (Address of Principal Executive Offices) (303) 671-3200 ---------------------------------------------------------------- (Registrant's Telephone Number) Andrew J. Donohue, Esq. Executive Vice President & General Counsel OppenheimerFunds, Inc. Two World Trade Center, New York, New York 10048-0203 (212) 323-0256 ----------------------------------------------------------------- (Name and Address of Agent for Service) As soon as practicable after the Registration Statement becomes effective. (Approximate Date of Proposed Public Offering) It is proposed that this filing will become effective on September 15, 1997, pursuant to Rule 488. No filing fee is due because the Registrant has previously registered an indefinite number of shares under Rule 24f-2; a Rule 24f-2 notice for the year ended June 30, 1996 was filed on August 23,1996. CONTENTS OF REGISTRATION STATEMENT This Registration Statement contains the following pages and documents: Front Cover Contents Page Cross-Reference Sheet Part A Proxy Statement for Daily Cash Accumulation Fund, Inc. Prospectus for Centennial Money Market Trust Part B Statement of Additional Information Part C Other Information Signatures Exhibits FORM N-14 CENTENNIAL MONEY MARKET TRUST ("Registrant") Cross Reference Sheet Part A of Proxy Statement of Daily Cash Form N-14 Accumulation Fund, Inc.("Daily Cash") and Prospectus of Registrant Item No. Heading and/or Title of Document - --------- -------------------------------------------------- 1 (a) Cross Reference Sheet (b) Front Cover Page (c) * 2 (a) * (b) Table of Contents 3 (a) Comparative Fee Tables (b) Synopsis (c) Principal Risk Factors 4 (a) Synopsis; Approval of the Reorganization; Comparison between Registrant and Daily Cash; Miscellaneous (b) Approval of the Reorganization - Capitalization Table 5 (a) Registrant's Prospectus; Comparison Between Registrant and Daily Cash (b) * (c) * (d) * (e) Miscellaneous (f) Miscellaneous 6 (a) Prospectus of Daily Cash; Annual Report of Daily Cash; Comparison Between Registrant and Daily Cash (b) Miscellaneous (c) * (d) * 7 (a) Synopsis; Information Concerning the Meeting (b) * (c) Synopsis; Information Concerning the Meeting 8 (a) Proxy Statement (b) * 9 * Part B of Form N-14 Item No. Statement of Additional Information Heading - --------- ------------------------------------------- 10 Cover Page 11 Table of Contents 12 (a) Registrant's Statement of Additional Information (b) * (c) * 13 (a) Statement of Additional Information about Daily Cash (b) * (c) * 14 Registrant's Statement of Additional Information; Statement of Additional Information about Daily Cash; Annual Report of Daily Cash at 12/31/96; Registrant's Annual Report at 6/30/97 Part C of Form N-14 Item No. Other Information Heading - --------- ------------------------- 15 Indemnification 16 Exhibits 17 Undertakings - ---------------- * Not Applicable or negative answer Preliminary Copy Daily Cash Accumulation Fund, Inc. 6803 South Tucson Way, Englewood, Colorado 80112 1-800-525-7048 NOTICE OF SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON NOVEMBER 18, 1997 To the Shareholders of Daily Cash Accumulation Fund, Inc.: Notice is hereby given that a Special Meeting of the Shareholders of Daily Cash Accumulation Fund, Inc.("Daily Cash Fund"), a registered management investment company, will be held at 6803 South Tucson Way, Englewood, Colorado 80112 at 10:00 A.M., Denver time, on November 18, 1997, or any adjournments thereof (the "Meeting"), for the following purposes: 1. To approve or disapprove an Agreement and Plan of Reorganization between Daily Cash Fund and Centennial Money Market Trust ("Money Market Trust"), and the transactions contemplated thereby, including (a)the transfer of substantially all the assets of Daily Cash Fund in exchange for shares of Money Market Trust, (b) the distribution of such shares to the shareholders of Daily Cash Fund in complete liquidation of Daily Cash Fund, (c) the de- registration of Daily Cash Fund as an investment company under the Investment Company Act of 1940, as amended, and (d) the dissolution of Daily Cash Fund and in connection therewith, the cancellation of the outstanding shares of Daily Cash Fund (the "Proposal"). 2. To act upon such other matters as may properly come before the Meeting. Shareholders of record at the close of business on September 19, 1997 are entitled to notice of, and to vote at, the Meeting. The Proposal is more fully discussed in the Proxy Statement and Prospectus. Please read it carefully before telling us, through your proxy or in person, how you wish your shares to be voted. Daily Cash Fund's Board of Directors recommends a vote in favor of the Proposal. WE URGE YOU TO SIGN, DATE AND MAIL THE ENCLOSED PROXY PROMPTLY. By Order of the Board of Directors, Andrew J. Donohue, Secretary October 1, 1997 - ----------------------------------------------------------------- Shareholders who do not expect to attend the Meeting are requested to indicate voting instructions on the enclosed proxy and to date, sign and return it in the accompanying postage-paid envelope. To avoid unnecessary duplicate mailings, we ask your cooperation in promptly mailing your proxy no matter how large or small your holdings may be. 140 Preliminary Copy Daily Cash Accumulation Fund, Inc. 6803 South Tucson Way, Englewood, Colorado 80112 1-800-525-7048 PROXY STATEMENT Centennial Money Market Trust 6803 South Tucson Way, Englewood, Colorado 80112 1-800-525-7048 PROSPECTUS This Proxy Statement of Daily Cash Accumulation Fund, Inc. relating to the Agreement and Plan of Reorganization and the transactions contemplated thereby (the "Reorganization") also constitutes a Prospectus of Centennial Money Market Trust included in a Registration Statement on Form N-14 filed by Money Market Trust with the Securities and Exchange Commission (the "SEC"). Such Registration Statement relates to the registration of shares of Money Market Trust to be offered to the shareholders of Daily Cash Fund pursuant to the Reorganization Agreement. Daily Cash Fund is located at 6803 South Tucson Way, Englewood, Colorado 80112 (telephone 1-800-525-7048). This Proxy Statement and Prospectus sets forth concisely information about Money Market Trust that shareholders of Daily Cash Fund should know before voting on the Reorganization. A copy of the Prospectus for Money Market Trust, dated October 1,1997 is enclosed, and incorporated herein by reference. The following documents have been filed with the SEC and are available without charge upon written request to Shareholder Services, Inc. ("SSI"), the transfer and shareholder servicing agent for Money Market Trust and Daily Cash Fund, at P.O. Box 5143, Denver, Colorado 80217, or by calling the toll-free number shown above: (i) a Prospectus for Daily Cash Fund, dated April 25, 1997, as supplemented August 14, 1997, (ii) a Statement of Additional Information for Daily Cash Fund, dated April 25, 1997, as revised May 12,1997 and (iii) a Statement of Additional Information for Money Market Trust, dated October 1, 1997. A Statement of Additional Information relating to the Reorganization, dated October 1, 1997 (the "Money Market Trust Additional Statement"), which is incorporated herein by reference and which contains more detailed information about Money Market Trust and its management, has been filed with the SEC as part of the Money Market Trust Registration Statement on Form N-14 and is available by written request to OFS at the same address immediately above or by calling the toll-free number shown above. Investors are advised to read and retain this Proxy Statement and Prospectus for future reference. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. This Proxy Statement and Prospectus is dated October 1, 1997 TABLE OF CONTENTS PROXY STATEMENT AND PROSPECTUS Page Introduction............................................................... General................................................................ Record Date; Vote Required; Share Information.......................... Proxies................................................................ Costs of the Solicitation and the Reorganization....................... Comparative Fee Table...................................................... Synopsis................................................................... Parties to the Reorganization.......................................... Shares to be Issued.................................................... The Reorganization..................................................... Reasons for the Reorganization......................................... Tax Consequences of the Reorganization................................. Investment Objectives and Policies..................................... Investment Advisory and Service Plan Fees.............................. Purchases, Exchanges and Redemptions................................... Principal Risk Factors..................................................... Approval of the Reorganization (The Proposal).............................. Reasons for the Reorganization......................................... The Reorganization..................................................... Tax Aspects of the Reorganization...................................... Capitalization Table (Unaudited)....................................... Comparison Between Daily Cash Fund and Money Market Trust.................. Investment Objectives.................................................. Investment Policies.................................................... Investment Restrictions................................................ Expense Ratios and Performance......................................... Shareholder Services................................................... Comparative Information on Shareholders' Rights........................ Management and Distribution Arrangements............................... Purchase of Additional Shares.......................................... Method of Carrying Out the Reorganization.................................. Miscellaneous.............................................................. Financial Information.................................................. Public Information..................................................... Other Business............................................................. Exhibit A - Agreement and Plan of Reorganization by and between Daily Cash Accumulation Fund, Inc. and Centennial Money Market Trust.......................................................................A-1 Exhibit B - Average Annual Total Returns for Periods Ended June 30, 1997........................................................................B-1 -1- DAILY CASH ACCUMULATION FUND, INC. 6803 South Tucson Way, Englewood, Colorado 80112 1-800-525-7048 PROXY STATEMENT AND PROSPECTUS Special Meeting of Shareholders to be held November 18, 1997 INTRODUCTION General This Proxy Statement and Prospectus is being furnished to the shareholders of Daily Cash Accumulation Fund, Inc.("Daily Cash Fund"), a registered management investment company, in connection with the solicitation by the Board of Directors (the "Board") of proxies to be used at the Special Meeting of Shareholders of Daily Cash Fund to be held at 6803 South Tucson Way, Englewood, Colorado 80112, at 10:00 A.M., Denver time, on November 18, 1997, or any adjournments thereof (the "Meeting"). It is expected that the mailing of this Proxy Statement and Prospectus will commence on or about October 1, 1997. At the Meeting, shareholders of Daily Cash Fund will be asked to approve an Agreement and Plan of Reorganization (the "Reorganization Agreement") between Daily Cash Fund and Centennial Money Market Trust ("Money Market Trust"), each a "Fund" and referred to herein collectively as the "Funds" and the transactions contemplated thereby, including (a) the transfer of substantially all the assets of Daily Cash Fund in exchange for shares of Money Market Trust, (b) the distribution of such shares to the shareholders of Daily Cash Fund in complete liquidation of Daily Cash Fund, (c) the de-registration of Daily Cash Fund as an investment company, under the Investment Company Act of 1940, as amended (the "Investment Company Act"), and (d) the dissolution of Daily Cash Fund and in connection therewith the cancellation of the outstanding shares of Daily Cash Fund (the "Reorganization"). Money Market Trust currently offers a single class of shares. There is no initial sales charge on purchases of Shares. The Shares issued pursuant to the Reorganization will be issued at net asset value without a sales charge. Additional information with respect to the shares issued by Money Market Trust is set forth herein, in the Prospectus of Money Market Trust accompanying this Proxy Statement and Prospectus and in the Money Market Trust Statement of Additional Information ("Money Market Trust Additional Statement"), which is incorporated herein by reference. Record Date; Vote Required; Share Information The Board has fixed the close of business on September 19, 1997 as the record date (the "Record Date") for the determination of shareholders entitled to notice of, and to vote at, the Meeting. The affirmative vote of the holders of a majority of the total number of shares outstanding and entitled to vote thereon of Daily Cash Fund is required to approve the Reorganization. Each shareholder will be entitled to one vote for each share and a fractional vote for each fractional share held of record at the close of business on the Record Date. Only shareholders of Daily Cash Fund will vote on the Reorganization. The vote of shareholders of Money Market Trust is not being solicited. At the close of business on the Record Date, there were_________ shares of Daily Cash Fund issued and outstanding. At the close of business on the Record Date, there were _________ shares of Money Market Trust issued and outstanding. The presence in person or by proxy of the holders of a majority of all of the shares of Daily Cash Fund constitutes a quorum for the transaction of business at the Meeting. To the knowledge of Daily Cash Fund, as of the Record Date, no person owned of record or beneficially owned 5% or more of its outstanding Shares except for A.G. Edwards & Sons, Inc. which owned ____ shares (____% of the outstanding shares of Daily Cash Fund). As of the Record Date, to the knowledge of Money Market Trust, no person owned of record or beneficially owned 5% or more of its outstanding Shares except for _______________. In addition, as of the Record Date, the Directors and officers of Daily Cash Fund and the Trustees and officers of Money Market Trust owned less than 1% of the outstanding shares of either Daily Cash Fund or Money Market Trust, respectively. Proxies The enclosed form of proxy, if properly executed and returned, will be voted (or counted as an abstention or withheld from voting) in accordance with the choices specified thereon, and will be included in determining whether there is quorum to conduct the Meeting. The proxy will be voted in favor of the Proposal unless a choice is indicated to vote against or to abstain from voting on the Proposal. Shares owned of record by broker-dealers for the benefit of their -2- customers ("street account shares") will be voted by the broker-dealer based on instructions received from its customers. If no instructions are received, the broker-dealer may (if permitted under applicable stock exchange rules), as record holder, vote such shares on the Proposal in the same proportion as that broker-dealer votes street account shares for which voting instructions were received in time to be voted. Broker "non-votes" exist where a proxy received from a broker indicates that the broker does not have discretionary authority to vote the shares on the matter. Shares represented in person or by proxy (including shares which abstain or do not vote on the Proposal, including broker "non- votes") will be counted for purposes of determining the number of shares that are present and are entitled to vote on the Proposal, but will not be counted as a vote in favor of such Proposal. Accordingly, an abstention from voting on the Proposal or a broker "non-vote" will have the same legal effect as a vote against the Proposal. If a shareholder executes and returns a proxy but fails to indicate how the votes should be cast, the proxy will be voted in favor of the Proposal. The proxy may be revoked at any time prior to the voting thereof by: (i) writing to the Secretary of Daily Cash Fund at Two World Trade Center, New York, New York 10048-0203 if the correspondence is received in time to be acted upon; (ii) attending the Meeting and voting in person; or (iii) signing and returning a new proxy (if returned and received in time to be voted). Costs of the Solicitation and the Reorganization All expenses of this solicitation, including the cost of printing and mailing this Proxy Statement and Prospectus, will be borne by Daily Cash Fund. Any documents such as existing prospectuses or annual reports that are included in that mailing will be a cost of the Fund issuing the document. In addition to the solicitation of proxies by mail, proxies may be solicited by officers of Daily Cash Fund or officers and employees of SSI, personally or by telephone or telegraph; any expenses so incurred will be borne by SSI. Proxies may also be solicited by a proxy solicitation firm hired at Daily Cash Fund's expense for such purpose. Brokerage houses, banks and other fiduciaries may be requested to forward soliciting material to the beneficial owners of shares of Daily Cash Fund and to obtain authorization for the execution of proxies. For those services, if any, they will be reimbursed by Daily Cash Fund for their reasonable out-of-pocket expenses. With respect to the Reorganization, Daily Cash Fund and Money -3- Market Trust will bear the cost of their respective tax opinions. Any other out-of-pocket expenses of Daily Cash Fund and Money Market Trust associated with the Reorganization, including legal, accounting and transfer agent expenses, will be borne by Daily Cash Fund and Money Market Trust, respectively, in the amounts so incurred by each. COMPARATIVE FEE TABLE Daily Cash Fund and Money Market Trust each pays a variety of expenses for management of its assets, administration, distribution of shares and other services, and those expenses are reflected in each Fund's net asset value per share. The following table is provided to help you compare the direct expenses of investing in each class of Daily Cash Fund with the direct expenses of investing in each class of Money Market Trust and the pro forma expenses of the surviving fund after giving effect to the Reorganization. Daily Cash Fund Money Market Trust Shareholder Transaction Expenses - ------------------------------------------------------------------------------- Maximum Sales Charge None None on Purchases (as a % of offering price) - ------------------------------------------------------------------------------- Maximum Deferred Sales None None Charge (as a % of the lower of the original purchase price or redemption proceeds) - ------------------------------------------------------------------------------- Maximum Sales Charge None None on Reinvested Dividends - ------------------------------------------------------------------------------- Exchange Fee None None Pro Forma Surviving Money Market Trust Shareholder Transaction Expenses - ------------------------------------------------------------------------------ Maximum Sales Charge None on Purchases (as a % of offering price) - ------------------------------------------------------------------------------ Maximum Sales Charge on None Reinvested Dividends -4- - ----------------------------------------------------------------------------- Exchange Fee None - ----------------------------------------------------------------------------- Redemption Fee None The Funds pay a variety of expenses directly for management of their assets, administration, distribution of their shares and other services and those expenses are reflected in each Fund's net asset value per share. The operating expenses of Daily Cash Fund and the operating expenses of Money Market Trust, respectively, as a percentage of average net assets for the twelve month period ended June 30, 1997 are set forth in the table below. The pro forma information (set forth below) consists of an estimate of the business expenses of the surviving Money Market Trust as of June 30, 1997, after giving effect to the Reorganization. All amounts shown are a percentage of net assets of each of the Funds. Daily Cash Fund Money Market Trust - ------------------------------------------------------------------------------- Management Fees 0.33% 0.35% - ------------------------------------------------------------------------------- 12b-1 Distribution & Service Plan Fees 0.20% 0.20% - ------------------------------------------------------------------------------- Other Expenses 0.14% 0.12% - ------------------------------------------------------------------------------- Total Fund Operating Expenses 0.67% 0.67% - ------------------------------------------------------------------------------- Pro Forma Combined Funds (Daily Cash Fund with Money Market Trust) - ------------------------------------------------------------------------------- Management Fees 0.34% - ------------------------------------------------------------------------------- 12b-1 Distribution & Service Plan Fees 0.20% - ------------------------------------------------------------------------------- Other Expenses 0.12% - ------------------------------------------------------------------------------- Total Fund Operating Expenses 0.66% The 12b-1 fees for shares of Daily Cash Fund and Money Market Trust consist of service plan fees. The service plan fees are a maximum -5- of 0.20% of average annual net assets of each Fund. The annual fund operating expenses for each Fund shown above are net of a voluntary waiver of a portion of its management fee by the Funds' investment adviser, Centennial Asset Management Corporation. Without the waivers, "Management Fees" and "Total Fund Operating Expenses" would have been 0.37% and 0.71% of average net assets of Daily Cash Fund and 0.41% and 0.73% of average net assets of Money Market Trust, respectively. The pro forma expenses for the combined Daily Cash Fund with Money Market Trust reflect the incorporation of additional breakpoints in the fee schedule as a result of a proposed amendment to the Investment Advisory Agreement between Centennial Asset Management Corporation and Money Market Trust. See "Synopsis" - "Investment Advisory and Distribution and Service Plan Fees." Examples. To attempt to show the effect of the expenses on an investment over time, the hypotheticals shown below have been created. Assume that you make a $1,000 investment in (1) shares of Daily Cash Fund, or (2) shares of Money Market Trust, or (3) shares of the pro forma surviving Money Market Trust (after the Reorganization), that the annual return is 5% and that the operating expenses for each Fund are the ones shown in the chart above, including expense assumptions or waivers. If you were to redeem your shares at the end of each period shown below, your investment would incur the following expenses by the end of each period shown.
1 year 3 years 5 years 10 years ------ ------- ------- -------- Daily Cash Fund 7 21 37 83 Money Market Trust 7 21 37 83 Pro Forma Surviving Money Market Trust (after Reorganization) 7 21 37 82
The examples show the effect of expenses on an investment, but are not meant to state or predict actual or expected costs or investment returns of the Fund(s), all of which may be more or less than the amounts shown. -6- SYNOPSIS The following is a synopsis of certain information contained in or incorporated by reference in this Proxy Statement and Prospectus and presents key considerations for shareholders of Daily Cash Fund to assist them in determining whether to approve the Reorganization. This synopsis is only a summary and is qualified in its entirety by the more detailed information contained in or incorporated by reference in this Proxy Statement and Prospectus and by the Reorganization Agreement, a copy of which is attached as an Exhibit A hereto. Shareholders should carefully review this Proxy Statement and Prospectus and the Reorganization Agreement in their entirety and, in particular, the current Prospectus of Money Market Trust which accompanies this Proxy Statement and Prospectus and is incorporated herein by reference. Parties to the Reorganization Daily Cash Fund is an open-end, diversified management investment company organized in 1981 as a Maryland corporation. It was originally organized as a Delaware corporation in 1972. Money Market Trust is an open-end, diversified management investment company organized as a Massachusetts business trust in 1979. Daily Cash Fund is currently authorized to issue 15 billion shares whereas Money Market Trust may issue an unlimited number of shares, of beneficial interest. Each Fund is located at 6803 South Tucson Way, Englewood, Colorado 80112. The address of Centennial Asset Management Corporation, the investment adviser to each Fund (the "Manager"),is also 6803 South Tucson Way, Englewood, Colorado 80112. Additional information about the parties is set forth below. Shares to be Issued All shareholders of Daily Cash Fund will receive shares of Money Market Trust in exchange for their shares of Daily Cash Fund. The voting rights of shares of each Fund are substantially the same. See "Comparative Information on Shareholders' Rights." The Reorganization The Reorganization Agreement provides for the transfer of the assets of Daily Cash Fund to Money Market Trust in exchange for shares of Money Market Trust. The net asset value of Money Market Trust shares issued in the exchange will equal the value of the -7- assets of Daily Cash Fund received by Money Market Trust. Following the Effective Date of the Reorganization, presently scheduled for November 20, 1997, Daily Cash Fund will distribute the shares of Money Market Trust received by Daily Cash Fund on the Closing Date (as defined herein) to shareholders of Daily Cash Fund. As a result of the Reorganization, each shareholder will receive the number of full and fractional Money Market Trust shares that is equal in value to such shareholder's pro rata interest in the assets transferred to Money Market Trust as of the Valuation Date (as defined herein). The Board of Directors of Daily Cash Fund has determined that the interests of existing Daily Cash Fund shareholders will not be diluted as a result of the Reorganization. For the reasons set forth below under "Reasons for the Reorganization," the Board, including the directors who are not "interested persons," as that term is defined in the Investment Company Act, of Daily Cash Fund (the "Independent Directors"), has concluded that the Reorganization is in the best interests of Daily Cash Fund and its shareholders and recommends approval of the Reorganization by Daily Cash Fund shareholders. The Board of Trustees of Money Market Trust has also determined that the interests of Money Market Trust shareholders will not be diluted as a result of the Reorganization and, accordingly, have approved Money Market Trust's participation in the Reorganization. If the Reorganization is not approved, Daily Cash Fund will continue in existence and the Board will determine whether to pursue alternative actions. Reasons for the Reorganization The Manager proposed to the Board the Reorganization of Daily Cash Fund into Money Market Trust so that shareholders of Daily Cash Fund may become shareholders of a larger fund, which after such Reorganization would permit shareholders to experience a slight reduction in expenses. In connection with its consideration of the Manager's recommendation, the Board of Directors of Daily Cash Fund reviewed extensive information from the Manager in evaluating the effect of the Reorganization on shareholders of the Fund. In determining whether to recommend approval of the Reorganization to shareholders of Daily Cash Fund, the Board of Directors considered a number of factors including, but not limited to: (1) the relative size and performance of each Fund, whether or not the Reorganization is effected; (2) the future prospects for growth and performance of each Fund; (3) the compatibility of the Funds' respective investment objectives, policies and restrictions; (4) the comparability of Funds' respective arrangements with their -8- investment adviser, general distributor and transfer agent; (5) the Funds' respective organizational structures; (6) the relative expense ratios of each Fund and the likely effect of the Reorganization on those expense ratios; (7) the costs of the Reorganization and the allocation of such costs to the constituent parties; (8) whether any cost savings can be achieved by combining the Funds; (9) the tax status and consequences of the Reorganization; and (10) whether the Reorganization would result in the dilution of shareholder interests. See "Approval of the Reorganization". Tax Consequences of the Reorganization The Reorganization is intended to qualify for Federal income tax purposes as a tax-free reorganization. As a condition to the closing of the Reorganization, each Fund will receive an opinion to the effect that the Reorganization will so qualify. As a result, it is expected that no gain or loss will be recognized by either Fund, or by the shareholders of either Fund for Federal income tax purposes as a result of the Reorganization. For further information about the tax consequences of the Reorganization, see "Approval of the Reorganization - Tax Aspects" below. Investment Objectives and Policies The investment objectives of Daily Cash Fund and Money Market Trust are substantially identical in that each Fund seeks the maximum current income that is consistent with low capital risk and the maintenance of liquidity. Each Fund invests in high quality money market instruments that are determined to present minimal credit risk and to be of eligible quality under SEC Rule 2a-7 promulgated under the Investment Company Act, ("Rule 2a-7"). See "Comparison Between Daily Cash Fund and Money Market Trust" - "Investment Objectives" and "Investment Policies" below. Investment Advisory and Service Plan Fees The services provided by the Manager under each Investment Advisory Agreement are substantially the same. Both Funds obtain investment management services from the Manager. In each instance the management fee is computed on the net asset value of the Fund as of the close of business each day and is payable monthly at specified annual rates. Pursuant to its Investment Advisory Agreement Daily Cash Fund pays the Manager 0.450% of the first $500 million of net assets; 0.425% of the next $500 million; 0.400% of the next $500 -9- million; 0.375% of the next $500 million; 0.350% of the next $500 million; 0.325% of the next $500 million; 0.300% of the next $500 million; 0.275% of the next $500 million; and 0.250% of net assets in excess of $4 billion. Independently of its Investment Advisory Agreement with Daily Cash Fund, the Manager has voluntarily agreed to waive a portion of the management fee otherwise payable to it by Daily Cash Fund to the extent necessary to enable the Fund's seven-day yield to equal the seven-day yield of Money Market Trust. This undertaking became effective as of December 1, 1994 and may be modified or terminated at any time. Money Market Trust pays the Manager 0.50% of the first $250 million of net assets; 0.475% of the next $250 million; 0.45% of the next $250 million; 0.425% of the next $250 million and 0.40% of net assets in excess of $1 billion. Independently of its Investment Advisory Agreement with Money Market Trust, the Manager has voluntarily agreed to waive a portion of the management fee otherwise payable to it by Money Market Trust to the extent necessary to: (a) permit Money Market Trust to have a seven-day yield at least equal to that of Daily Cash Fund, and (b) to reduce, on an annual basis, the management fee paid on the average net assets of the Trust in excess of $1 billion from 0.40% to: 0.40% of average net assets in excess of $1 billion but less than $1.25 billion; 0.375% of average net assets in excess of $1.25 billion but less that $1.50 billion; 0.35% of average net assets in excess of $1.50 billion but less than $2 billion; and 0.325% of average net assets in excess of $2 billion. This undertaking became effective as of December 1, 1991, and may be modified or terminated by the Manager at any time. Daily Cash Fund and Money Market Trust have both adopted Service Plans for their respective shares. Both Service Plans provide for reimbursement to the Distributor for a portion of its costs incurred in connection with the personal service and maintenance of accounts that hold shares. Under each plan, payment is made at an annual rate that may not exceed 0.20% of the average annual net assets of shares of each of the Funds. Purchases, Exchanges and Redemptions Both Daily Cash Fund and Money Market Trust are part of the OppenheimerFunds complex of mutual funds. The procedures for -10- purchases, exchanges and redemptions of shares of the Funds are substantially the same. Shares of either Fund may be exchanged only for Class A shares of the other Oppenheimer funds offering such shares. PRINCIPAL RISK FACTORS In evaluating whether to approve the Reorganization and invest in Money Market Trust, shareholders should carefully consider the following discussion of risks, the information set forth in this Proxy Statement and Prospectus and the more complete description of risk factors set forth in the documents incorporated by reference herein, including the Prospectuses of the Funds and their respective Statements of Additional Information. In general, an investment in either Fund entails substantially the same risks. The Funds invest only in securities that have remaining maturities of 397 days (thirteen months) or less at the date of purchase. For this purpose, floating rate or variable rate obligations (described below), which are payable on demand, but which may otherwise have a stated maturity in excess of this period, will be deemed to have remaining maturities of less than 397 days pursuant to conditions established by the SEC. The Funds maintain a dollar-weighted average portfolio maturity of ninety days or less. The Funds follow these policies in order to maintain a stable net asset value of $1.00 per share, although there is no assurance that they can do so on a continuing basis. The market value of the obligations in a Fund's portfolio can be expected to vary inversely to changes in prevailing interest rates. APPROVAL OF THE REORGANIZATION (The Proposal) Reasons for the Reorganization At regular meetings held on April 29, 1997, June 24, 1997 and August 26, 1997, the Board of Directors of Daily Cash Fund, including the Independent Directors, considered the Manager's recommendation to reorganize the Fund with and into Money Market Trust and unanimously approved the Reorganization as in the best interests of shareholders. The Board of Directors also determined that the transactions contemplated by the Reorganization would not dilute the interests of existing shareholders of the Fund. These matters were reviewed by the Board of Directors at -11- their regular meeting held on August 26, 1997. In approving the Reorganization, the Board of Directors reviewed various factors about the Funds and the Reorganization. The Board considered the fact that Daily Cash Fund and Money Market Trust are both money market funds and that, as such, there are substantial similarities between the Funds. Daily Cash Fund and Money Market Trust have substantially similar investment objectives and policies. Each Fund seeks current income that is consistent with low capital risk and the maintenance of liquidity. See "Comparison Between Daily Cash Fund and Money Market Trust" below. The Funds have comparable risk profiles and the investment performance of both Funds is substantially the same. See Exhibit B. In considering the Reorganization, the Board reviewed information which demonstrated that Daily Cash Fund is a significantly smaller fund than Money Market Trust. The Board acknowledged the fact Daily Cash Fund has decreased in size since the sale of shares to new investors was terminated in 1991 and that it is anticipated that the Fund will continue to decrease in size. The Board considered the fact that as the Fund becomes smaller, there will be fewer assets over which to spread Fund expenses, thus increasing the Fund's expense ratio. At the same time the Board evaluated the potential economies of scale associated with larger mutual funds and concluded that operational efficiencies as well as a potentially lower expense ratio may be achieved upon reorganization of the Fund with another larger mutual fund advised by the Manager. As of June 30, 1997, Daily Cash Fund's net assets were $3,511,226,915 whereas Money Market Trust's assets were $9,062,966,881. As of June 30, 1997, the expense ratio of Daily Cash Fund was 0.67% (net of the Manager's voluntary waiver of a portion of the management fee to which it was entitled)and the expense ratio of Money Market Trust was also 0.67%. Without these waivers, Daily Cash Fund's expense ratio would have been 0.71% and Money Market Trust's expense ratio would have been 0.73%. In connection with these discussions, it was noted that the pro forma expense ratio of Money Market Trust (assuming completion of the Reorganization) would be lower than that of Daily Cash Fund, assuming that assets of Money Market Trust remain at current levels or increase even though there would be a slight increase in the management fee as a percentage of assets. Since the management fee schedules of the Funds are not identical under their respective Investment Advisory Agreements with the Manager, it is possible that following the Reorganization, the management fees to be paid -12- by Money Market Trust under its current Investment Advisory Agreement could be greater than the management fee currently paid by Daily Cash Fund if asset levels of Money Market Trust declined to a level comparable to that of Daily Cash Fund at June 30, 1997. Independently of its Investment Advisory Agreement with Daily Cash Fund, the Manager has voluntarily agreed to waive a portion of the management fee otherwise payable to it by Daily Cash Fund to the extent necessary to enable the Fund's seven-day yield to equal the seven-day yield of Money Market Trust. Daily Cash Fund's management fee for its fiscal year ended December 31, 1996 was 0.36% after giving effect to this voluntary waiver which became effective as of December 1, 1994, and may be modified or terminated at any time. Independently of its Investment Advisory Agreement with Money Market Trust, the Manager has voluntarily agreed to waive a portion of the management fee otherwise payable to it by Money Market Trust to the extent necessary to: (a) permit Money Market Trust to have a seven-day yield at least equal to that of Daily Cash Fund, and (b) to reduce, on an annual basis, the management fee paid on the average net assets of the Trust in excess of $1 billion from 0.40% to: 0.40% of average net assets in excess of $1 billion but less than $1.25 billion; 0.375% of average net assets in excess of $1.25 billion but less that $1.50 billion; 0.35% of average net assets in excess of $1.50 billion but less than $2 billion; and 0.325% of average net assets in excess of $2 billion. Money Market Trust's management fee for its fiscal year ended June 30, 1997 was 0.35% after giving effect to this voluntary waiver which became effective as of December 1, 1991, and may be modified or terminated at any time. The Manager has agreed to amend its Investment Advisory Agreement with Money Market Trust to incorporate the additional breakpoints in the management fee upon the completion of the Reorganization. Once incorporated into the Investment Advisory Agreement, the Manager would be unable to revise the fee schedule without shareholder approval. The Board of Directors considered various other factors relevant to the Reorganization, including the nature of the anticipated benefits to be derived from the Reorganization by shareholders of Daily Cash Fund. They considered the fact that the Reorganization is expected to qualify as a tax-free reorganization and, in -13- addition, the fact that no sales charges would be imposed upon shareholders in connection with the Reorganization. They also considered the fact that the Reorganization may result in economies of an indeterminate amount to the Manager. The Board of Directors evaluated the merits of the Fund's participation in the Reorganization and concluded that the Fund's participation in the Reorganization was in the best interests of the Fund and, in addition, that the interests of current shareholders of the Fund would not be diluted as a result of its participation. The Board of Directors were represented by legal counsel in connection with the proposed transaction. At regular meetings held on April 29, 1997, June 24, 1997 and August 26, 1997, the Board of Trustees of Money Market Trust, including the Independent Trustees, considered the Manager's recommendation to reorganize Daily Cash Fund with and into Money Market Trust. The Trustees of Money Market Trust also concluded that the proposed Reorganization would be in the best interests of shareholders of that Fund and that the interests of shareholders of that Fund would not be diluted as a result of the Reorganization. The Trustees of Money Market Trust, who also serve as Directors of Daily Cash Fund, were represented by legal counsel in connection with the proposed Reorganization. The Reorganization The Reorganization Agreement (a copy of which is set forth in full as Exhibit A to this Proxy Statement and Prospectus) contemplates a reorganization under which (a) all of the assets of Daily Cash Fund (other than the cash reserve described below (the "Cash Reserve")) will be transferred to Money Market Trust in exchange for shares of Money Market Trust, (b) the shares of Money Market Trust will be distributed among the shareholders of Daily Cash Fund in complete liquidation of Daily Cash Fund,(c) Daily Cash Fund will be de-registered as an investment company under the Investment Company Act, and (d) Daily Cash Fund will be dissolved and in connection with such dissolution its outstanding shares will be canceled. The Reorganization Agreement provides that Money Market Trust will not assume any of Daily Cash Fund's liabilities except for portfolio securities purchased which have not settled and outstanding shareholder redemption and dividend checks. The result of effectuating the Reorganization would be that: (i) Money Market Trust will add to its gross assets all of the assets (net of any liability for portfolio securities purchased but not -14- settled and outstanding shareholder redemption and dividend checks) of Daily Cash Fund other than its Cash Reserve; and (ii) the shareholders of Daily Cash Fund as of the close of business on the Closing Date will become shareholders of Money Market Trust. The effect of the Reorganization will be that shareholders of Daily Cash Fund who vote their shares in favor of the Reorganization will be electing to redeem their shares of Daily Cash Fund (at net asset value on the Valuation Date referred to below under "Method of Carrying Out the Reorganization Plan," calculated after subtracting the Cash Reserve) and reinvest the proceeds in shares of Money Market Trust at net asset value without sales charge and without recognition of taxable gain or loss for Federal income tax purposes (see "Tax Aspects of the Reorganization" below). The Cash Reserve is that amount retained by Daily Cash Fund which is sufficient in the discretion of the Board for the payment of: (a) Daily Cash Fund's expenses of liquidation, and (b) its liabilities, other than those assumed by Money Market Trust. Daily Cash Fund and Money Market Trust will bear all of their respective expenses associated with the Reorganization, as set forth under "Costs of the Solicitation and the Reorganization" above. Management estimates that such expenses associated with the Reorganization to be borne by Daily Cash Fund will be approximately $350,000. Liabilities as of the date of the transfer of assets will consist primarily of accrued but unpaid normal operating expenses of Daily Cash Fund, excluding the cost of any portfolio securities purchased but not yet settled and outstanding shareholder redemption and dividend checks. See "Method of Carrying Out the Reorganization" below. The Reorganization Agreement provides for coordination between the Funds as to their respective portfolios so that, after the closing, Money Market Trust will be in compliance with all of its investment policies and restrictions. Daily Cash Fund will recognize capital gain or loss on any sales made pursuant to this paragraph. Tax Aspects of the Reorganization Immediately prior to the Valuation Date referred to in the Reorganization Agreement, Daily Cash Fund will pay a dividend or dividends which, together with all previous dividends, will have the effect of distributing to Daily Cash Fund's shareholders all of Daily Cash Fund's investment company taxable income for taxable years ending on or prior to the Closing Date (computed without regard to any deduction for dividends paid) and all of its net -15- capital gain, if any, realized in taxable years ending on or prior to the Closing Date (after reduction for any available capital loss carry-forward). Such dividends will be included in the taxable income of Daily Cash Fund's shareholders as ordinary income and capital gain, respectively. The exchange of the assets of Daily Cash Fund for shares of Money Market Trust and the assumption by Money Market Trust of certain liabilities of Daily Cash Fund is intended to qualify for Federal income tax purposes as a tax-free reorganization under Section 368(a)(1) of the Internal Revenue Code of 1986, as amended (the "Code"). Daily Cash Fund has represented to Deloitte & Touche, LLP, tax adviser to Daily Cash Fund, that to the best of the Fund's knowledge, there is no plan or intention by any Fund shareholder who owns 5% or more of Daily Cash Fund's outstanding shares, and, to Daily Cash Fund's best knowledge, there is no plan or intention on the part of the remaining Daily Cash Fund shareholders, to redeem, sell, exchange or otherwise dispose of a number of Money Market Trust shares received in the transaction that would reduce Daily Cash Fund shareholders' ownership of Money Market Trust shares to a number of shares having a value, as of the Closing Date, of less than 50% of the value of all the formerly outstanding Daily Cash Fund shares as of the same date. Money Market Trust and Daily Cash Fund have each represented to Deloitte & Touche LLP, that, as of the Closing Date, it will qualify as a regulated investment company or will meet the diversification test of Section 368(a)(2)(F)(ii) of the Code. As a condition to the closing of the Reorganization, Money Market Trust and Daily Cash Fund, respectively, will receive an opinion of Deloitte & Touche LLP to the effect that, based on the Reorganization Agreement, the above representations, existing provisions of the Code, Treasury Regulations issued thereunder, current Revenue Rulings, Revenue Procedures and court decisions, for Federal income tax purposes: 1. The transactions contemplated by the Reorganization Agreement will qualify as a tax-free "reorganization" within the meaning of Section 368(a)(1) of the Code. 2. Daily Cash Fund and Money Market Trust will each qualify as "a party to a reorganization" within the meaning of Section 368(b)(2) of the Code. 3. No gain or loss will be recognized by the shareholders of -16- Daily Cash Fund upon the distribution of shares of beneficial interest in Money Market Trust to the shareholders of Daily Cash Fund pursuant to Section 354 of the Code. 4. Under Section 361(a) of the Code no gain or loss will be recognized by Daily Cash Fund by reason of the transfer of its assets solely in exchange for shares of Money Market Trust. 5. Under Section 1032 of the Code no gain or loss will be recognized by Money Market Trust by reason of the transfer of Daily Cash Fund's assets solely in exchange for shares of Money Market Trust. 6. The shareholders of Daily Cash Fund will have the same tax basis and holding period for the shares of beneficial interest in Money Market Trust that they receive as they had for Daily Cash Fund shares that they previously held, pursuant to Sections 358(a) and 1223(1) of the Code, respectively. 7. The securities transferred by Daily Cash Fund to Money Market Trust will have the same tax basis and holding period in the hands of Money Market Trust as they had for Daily Cash Fund, pursuant to Sections 362(b) and 1223(1) of the Code, respectively. Opinions of experts are not binding upon the Internal Revenue Service or the courts. If the Reorganization is consummated but does not qualify as a tax-free reorganization under the Code, each Daily Cash Fund shareholder would recognize a taxable gain or loss equal to the difference between his or her tax basis in his or her Daily Cash Fund shares and the fair market value of Money Market Trust shares he or she received as a result of the Reorganization. Shareholders of Daily Cash Fund should consult their tax advisors regarding the effect, if any, of the Reorganization in light of their individual circumstances. Since the foregoing discussion relates only to the Federal income tax consequences of the Reorganization, shareholders of Daily Cash Fund should also consult their tax advisors as to state and local tax consequences, if any, of the Reorganization. Capitalization Table (Unaudited) The table below sets forth the capitalization of Daily Cash Fund and Money Market Trust and indicates the pro forma combined -17- capitalization as of June 30, 1997 as if the Reorganization had occurred on that date. June 30, 1997
Net Asset Shares Value Net Assets Outstanding Per Share ---------- ------------ ---------- Daily Cash Fund $3,511,226,915 3,511,067,059 $1.00 Money Market Trust $9,062,966,881 9,062,904,841 $1.00 Money Market Trust $12,574,193,796 12,574,133,409 $1.00 Pro Forma Surviving Fund (after Reorganization with Daily Cash)(1) (1) Reflects issuance of 3,511,228,568.08 shares of Money Market Trust in a tax-free exchange for the net assets of Daily Cash Fund, aggregating $3,511,226,915.00. The pro forma ratio of expenses to average annual net assets of the shares for fiscal year ended June 30, 1997 would have been 0.66%.
COMPARISON BETWEEN DAILY CASH FUND AND MONEY MARKET TRUST The following discussion is based upon and qualified in its entirety by the descriptions of the respective investment objectives, policies and restrictions set forth in the respective Prospectus and Statement of Additional Information of each Fund. The investment objectives, policies and restrictions of Money Market Trust can be found in its Prospectus, which accompanies this Proxy Statement and Prospectus, under the captions "Investment Objective and Policies" and "Investment Restrictions". The investment objectives, policies and restrictions of Daily Cash Fund can be found in the Prospectus of Daily Cash Fund under the captions "Investment Objective and Policies" and "Investment Restrictions". Investment Objectives Both Daily Cash Fund and Money Market Trust seek to achieve a level of current income consistent with preserving capital and providing liquidity. Each Fund's investment objective is a fundamental policy which means that is may not be changed without shareholder approval. -18- Investment Policies Both Funds are subject to the provisions of Rule 2a-7. As a result, the Funds may only purchase U.S. dollar-denominated instruments that each Fund's Board of Directors or Board of Trustees, as the case may be, determines presents minimal credit risks and are "Eligible Securities" at the time of purchase. Eligible Securities include (1) securities rated in one of the two highest short-term rating categories by any two "nationally recognized statistical rating organizations" as defined in Rule 2a- 7 ("NRSROs") or if only one NRSRO has assigned a rating, by that NRSRO; or (2) unrated securities that are judged by the Manager to be of comparable quality to investments that are "Eligible Securities" rated by NRSROs. In addition, Rule 2a-7 prohibits either Fund from holding more than 5% of its assets in "Second Tier Securities". (A First Tier Security is a security that is rated in the highest short-term rating category. A Second Tier Security is one that is eligible for purchase under Rule 2a-7, but is not a First Tier Security.) Rule 2a-7 also has certain portfolio maturity restrictions. The Funds may invest only in securities that have remaining maturities of 397 days (thirteen months) or less at the date of purchase. For this purpose, the Funds deem floating rate or variable rate obligations that are payable on demand, but may otherwise have a stated maturity greater than this period, to have remaining maturities of less than 397 days pursuant to conditions established by the SEC. The Funds must also maintain a dollar-weighted average portfolio maturity of ninety days or less. The Funds follow these policies in order to maintain a stable net asset value of $1.00 per share, although there is no assurance that they can do so regularly. Shareholders should expect the market value of the obligations in each Fund's portfolio to vary inversely to changes in prevailing interest rates. Subject to the parameters of Rule 2a-7, the Funds invest in the types of securities described below. These policies are non- fundamental policies. The Board may change non-fundamental policies without shareholder approval. U.S. Government Securities. Both Funds may invest in obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities, maturing in twelve months or less from the date of purchase. -19- Bank Obligations. Both Funds may invest in U.S. dollar-denominated certificates of deposit, bankers' acceptances and any other bank obligations if they are obligations of: (1) any U.S. bank having total assets at least equal to $1 billion or (2) any foreign bank, if such bank has total assets at least equal of U.S. $1 billion. Daily Cash Fund may also invest in instruments secured by such obligations. Neither Fund may invest more than 25% of its assets in securities issued by foreign banks. Commercial Paper. Both Funds may invest in commercial paper maturing in nine months or less from the date of purchase, or in variable rate notes, variable rate master demand notes or master demand notes that meet the requirements of Rule 2a-7. Certain Debt Obligations. Both Funds may invest in certain debt obligations which are Eligible Securities and that either mature within twelve months from the date of purchase or have been called for redemption by the issuer, with such redemption to be effective within one year. Floating Rate/Variable Rate Notes. Both Funds may invest in floating rate or variable rate notes having a remaining maturity of one year or less or floating rate or variable rate notes having a remaining maturity of more than one year if they have a demand feature that permits the Fund to recover the principal amount of the underlying security at specified intervals not exceeding one year and upon no more than 30 days' notice. Repurchase Agreements. Both Funds may acquire securities that are subject to repurchase agreements, provided that such repurchase agreements will be fully collateralized under the requirements of Rule 2a-7. Other Obligations. Daily Cash Fund may invest in obligations other than those enumerated above if accompanied by a guarantee of principal and interest or letter of credit, provided that the guarantee or letter of credit is that of a bank or corporation whose certificates of deposit or commercial paper may otherwise be purchased by the Fund. Money Market Trust may invest in obligations other than those enumerated above if they are guaranteed as to principal and interest by the U.S. Government or one of its agencies or by a bank or corporation whose certificates of deposit or commercial paper may otherwise be eligible for purchase by the Fund. In the case of both Funds such obligations and guarantees must be due within twelve months or less from the -20- date of purchase unless they are purchased subject to repurchase agreements calling for delivery in twelve months or less. Board Approved Instruments. Both Funds may invest in obligations other than those enumerated above, provided that such obligations are approved by the Fund's Board and are in accordance with the Fund's investment objective, policies and restrictions. Illiquid and Restricted Securities. Both Funds may invest up to 25% of their net assets in restricted securities, subject to a 10% overall limitation on investments in illiquid securities. i.e. securities that are illiquid by virtue of the absence of a readily available market or because of legal or contractual restrictions on resale. Investment Restrictions Both Funds have certain investment restrictions which, together with their respective investment objectives, are fundamental policies. Fundamental policies are policies which can be changed only by the vote of a "majority" (as defined in the Investment Company Act) of the Fund's outstanding voting securities. Under some of those restrictions, the Funds cannot: (1) invest more than 5% of the value of its total assets in the securities of any one issuer (other than the U.S. Government or its agencies or instrumentalities); (2) purchase more than 10% of the outstanding non-voting securities or more than 10% of the total debt securities of any one issuer; (3) concentrate investments to the extent of 25% of its assets in any industry; however, there is no limitation as to investment in obligations issued by banks, savings and loan associations or the U.S. Government and its agencies or instrumentalities; (4) invest in any debt instrument having a maturity in excess of one year from the date of the investment or, in the case of a debt instrument subject to a repurchase agreement or called for redemption, having a repurchase or redemption date more than one year from the date of the investment; (5) borrow money except as a temporary measure for extraordinary or emergency purposes, and then only up to 10% of the market value of the Fund's assets; no assets of the Fund may be pledged, mortgaged or assigned to secure a debt and as to Money Market Trust only, the Fund will not make any investment when such borrowing exceeds 5% of the value of its assets; (6) invest more than 5% of the value of its total assets in securities of companies that have operated less than three years, including the operations of predecessors; or (7) make loans, except the Fund may: (i) purchase debt securities, (ii) -21- purchase debt securities subject to repurchase agreements, or (iii) lend its securities as described in the Statement of Additional Information; (8) invest in commodities or commodity contracts or invest in interests in oil, gas or other mineral exploration or mineral development programs; (9) invest in real estate; however the Fund may purchase debt securities issued by companies which invest in real estate or interests therein; (10) purchase securities on margin or make short sales of securities; (11) invest in or hold securities of any issuer if those officers and Directors or Trustees of the Fund or the Manager who beneficially own individually more than 0.5% of the securities of such issuer together own more than 5% of the securities of such issuer; (12) underwrite securities of other companies; or (13) invest in securities of other investment companies (as to Money Market Trust only, except in connection with a consideration or merger). Additional information about both Funds is set forth in documents that may be obtained upon request of the Transfer Agent or upon review at the offices of the SEC. The following discussion about the investment objectives and policies of Daily Cash Fund and Money Market Trust is qualified in its entirety by reference to each Fund's current Prospectus and Statement of Additional Information. See "Miscellaneous - Public Information." The securities in which Money Market Trust and Daily Cash Fund each normally invest are summarized below. The Funds invest in substantially the same types of securities and are subject to similar investment restrictions. These investment techniques and strategies involve certain risks which are explained more fully in each Fund's Statement of Additional Information. Unless the Prospectus of either Money Market Trust or Daily Cash Fund states that a percentage restriction applies on an ongoing basis, a restriction applies only at the time the Fund makes an investment, and the Fund need not sell securities to meet the percentage limits if the value of the investment increases in proportion to the size of the Fund. Additional investment restrictions are listed in "Other Investment Restrictions" in the Statement of Additional Information of each Fund. Expense Ratios and Performance The ratio of expenses to average net assets for Daily Cash Fund for the period ended June 30, 1997 was 0.67% (after the Manager's voluntary waiver). The ratio of expenses to average net assets -22- would have been 0.71% without the Manager's voluntary waiver. The ratio of expenses to average net assets for Money Market Trust for the fiscal year ended June 30, 1997, was 0.67%. The ratio of expenses to average net assets would have been 0.73% without the Manager's voluntary waiver. Further details are set forth above under "Comparative Fee Table", and in Daily Cash Fund's Annual Report as of December 31, 1996, and Money Market Trust's Annual Report as of June 30, 1997, which are included in the Statement of Additional Information. The performance of the Funds for the 1, 3, 5 and 10 year periods ended June 30, 1997 is set forth in Exhibit B. Shareholder Services The policies of Daily Cash Fund and Money Market Trust with respect to minimum initial investments and subsequent investments by its shareholders are the same. Both Daily Cash Fund and Money Market Trust offer the following privileges:(i) Automatic Purchase and Redemption Plans with certain brokers, (ii) Automatic Withdrawal Plans,(iii) exchanges of shares for shares of certain other funds at net asset value,(iv) telephone redemption and exchange privileges,(v) payments by Federal Wires,(vi) Checkwriting privileges,(vii)Expedited redemptions. Shares of either Fund may be exchanged for shares of certain Oppenheimer funds at net asset value per share. Shareholders of the Funds may redeem their shares by written request or by telephone request in an amount up to $50,000 in any seven-day period. Shareholders may arrange to have share redemption proceeds of $2,500 or more wired by the Transfer Agent by Federal Funds wire to a designated commercial bank which is a member of the Federal Reserve wire system. Both Funds offer Automatic Withdrawal and Automatic Exchange Plans under certain conditions. Comparative Information On Shareholders' Rights Form of Organization. Daily Cash Fund and Money Market Trust are open-end management investment companies registered with the SEC under the Investment Company Act, which continuously offer shares to the public. Daily Cash Fund is organized as a Maryland corporation and is governed by Articles of Incorporation, By-Laws and Board of Directors. Money Market Trust is organized as a Massachusetts business trust and in governed by a Declaration of Trust, By-Laws and Board of Trustees. Daily Cash Fund is governed by applicable Maryland law whereas Money Market Trust is governed -23- by applicable Massachusetts law. Both Funds are governed by applicable federal law. Capitalization. Daly Cash Fund is authorized to issue 15 billion shares,$.10 par value per share. Money Market Trust may issue an unlimited number of transferable shares of beneficial interest, having no par value per share. The respective Articles of Incorporation or Declaration of Trust under which each Fund has been established permits the respective Directors or Trustees to allocate shares into an unlimited number of classes thereof, with the rights determined by the Directors or Trustees, as the case may be, all without shareholder approval. Each Fund currently has a single class of shares outstanding. Fractional shares may be issued. Each Fund's shares have equal voting rights with respect to matters affecting shareholders and represent equal proportionate interests in the assets belonging to the Funds. Shareholders of each Fund are entitled to receive dividends and other amounts as determined by Daily Cash Fund's Board of Directors or Money Market Trust's Board of Trustees. Shareholder Liability. Daily Cash Fund is a corporation organized under the laws of the state of Maryland. As a general matter, shareholders of a corporation will not be liable to the corporation or its creditors with respect to their interests in the corporation as long as their shares have been paid for and the requisite corporate formalities has been observed, both in the organization of the corporation and in the conduct of its business. Under Massachusetts law, shareholders of a business trust could, under certain circumstances, be held personally liable for the obligations of the business trust. However, the Declaration of Trust under which Money Market Trust was established disclaims shareholder liability for acts or obligations of the Fund and requires that notice of such disclaimer be given in each agreement, obligation or instrument entered into or executed by the Fund or the Trustees. The Declaration of Trust provides for indemnification out of the Fund's property for all losses and expenses of any shareholder held personally liable for the obligation of the Fund. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is considered remote since it is limited to circumstances in which the Fund itself would be unable to meet its obligations. A substantial number of mutual funds in the United States are organized as Massachusetts business trusts. Shareholder Meetings and Voting Rights. Neither Daily Cash Fund -24- nor Money Market Trust is required to hold annual meetings of shareholders. Each Fund is required to call a meeting of shareholders for the purpose of electing Directors or Trustees if, at any time, less than a majority of the Directors or Trustees then holding office were elected by shareholders. Neither Daily Cash Fund nor Money Market Trust currently intends to hold regular shareholder meetings. Neither permits cumulative voting. Liquidation or Dissolution. In the event of the liquidation of a Fund the shareholders are entitled to receive, when, and as declared by the Directors or Trustees, the excess of the assets belonging to such Fund over the liabilities belonging to the Fund. In either case, the assets so distributable to shareholders of the Fund will be distributed among the shareholders in proportion to the number of shares of the Fund held by them and recorded on the books of the Fund. Management and Distribution Arrangements The Manager, located at 6803 South Tucson Way, Englewood, Colorado 80112, acts as the investment adviser to both Daily Cash Fund and Money Market Trust. The terms and conditions of the Investment Advisory Agreement for each Fund are substantially the same. The monthly management fee payable to the Manager by each fund is set forth under "Synopsis - Investment Advisory and Distribution and Service Plan Fees." The 12b-1 Distribution and Service Plan fees paid by the Funds are set forth above under "Synopsis - Investment Advisory and Distribution and Service Plan Fees." Pursuant to the Investment Advisory Agreements, the Manager supervises the investment operations of the Funds and the composition of their portfolios, and furnishes advice and recommendations with respect to investments, investment policies and the purchase and sale of securities. The Investment Advisory Agreements require the Manager to provide Daily Cash Fund and Money Market Trust with adequate office space, facilities and equipment and to provide and supervise the activities of all administrative and clerical personnel required to provide effective administration for the Funds, including the compilation and maintenance of records with respect to their operations, the preparation and filing of specified reports, and composition of proxy materials and registration statements for the continuous public sale of shares of each Fund. Expenses not expressly assumed by the Manager under each Fund's -25- Investment Advisory Agreement or by Centennial Asset Management Corporation as Distributor of the Funds (the "Distributor"), under the General Distributor's Agreement, are paid by the Funds. The Investment Advisory Agreements list examples of expenses paid by the Funds, the major categories of which relate to interest, taxes, brokerage commissions, fees to certain Trustees, legal and audit expenses, custodian and transfer agent expenses, share issuance costs, certain printing and registration costs and non-recurring expenses, including litigation costs. The management fee paid by Daily Cash Fund for the period ended June 30, 1997 was $13,220,242. This does not reflect the expense assumption by the Manager of $1,398,800. For the fiscal year ended June 30, 1997, the management fee paid by Money Market Trust was $32,755,568. This does not reflect the expense assumption by the Manager of $4,890,123. Under its Investment Advisory Agreement with Daily Cash Fund, the Manager has agreed to reimburse the Fund for annual expenses of the Fund which exceed the most stringent limits prescribed by any state in which the Fund's shares are offered for sale. Excluded from such reimbursement are brokerage commissions, taxes, interest and extraordinary expenses such as litigation costs. As a result of changes in federal securities laws which have effectively pre- empted state expense limitations, the contractual commitment relating to such reimbursements is no longer relevant. Under its Investment Advisory Agreement with Money Market Trust, the Manager has agreed to reimburse the Fund for any amounts by which the Fund's expenses (excluding taxes, interest, brokerage commissions and extraordinary expenses such as litigations costs) in any fiscal year exceed the lesser of (i) 1.5% of the average annual net assets of the Fund up to $30 million and 1% of its average annual net assets in excess of $30 million; or (ii) 25% of total annual investment income of the Fund. Since Money Market Trust's assets were $9,062,966,881 at June 30, 1997, it is not anticipated that the Manager's commitment would result in reimbursement to the Fund unless asset levels declined to a point at which the commitment would become meaningful. The Manager is a wholly owned subsidiary of OppenheimerFunds, Inc. which is controlled by Oppenheimer Acquisition Corp., a holding company owned in part by senior management of the Manager and ultimately controlled by Massachusetts Mutual Life Insurance Company, a mutual life insurance company that also advises pension plans and investment companies. The Manager has operated as an -26- investment adviser since 1978. The Manager and its affiliates currently advise investment companies with combined net assets aggregating over $60 billion as of June 30, 1997, with more than 3 million shareholder accounts. Shareholder Services, Inc., a subsidiary of OppenheimerFunds, Inc., acts as transfer and shareholder servicing agent on an at-cost basis for Daily Cash Fund and Money Market Trust and for certain other open-end funds managed by the Manager and its affiliates. The Distributor, under a General Distributor's Agreement for each of the Funds, acts as the principal underwriter in the continuous public offering of shares of each Fund. For additional information about distribution of the Funds' shares and the payments made by the Funds to the Distributor in connection with such activities, please refer to "Distribution and Service Plans," in each Fund's Statement of Addition Information. Purchase of Additional Shares Shares of both Daily Cash Fund and shares of Money Market Trust may be purchased without any initial sales charge. METHOD OF CARRYING OUT THE REORGANIZATION The consummation of the transactions contemplated by the Reorganization Agreement is contingent upon the approval of the Reorganization by the shareholders of Daily Cash Fund and the receipt of the opinions and certificates set forth in Sections 10 and 11 of the Reorganization Agreement and the occurrence of the events described in those Sections. Under the Reorganization Agreement, all the assets of Daily Cash Fund, excluding the Cash Reserve, will be delivered to Money Market Trust in exchange for shares of Money Market Trust. The Cash Reserve to be retained by Daily Cash Fund will be sufficient in the discretion of the Board for the payment of Daily Cash Fund's liabilities, and Daily Cash Fund's expenses of liquidation and dissolution. Assuming the shareholders of Daily Cash Fund approve the Reorganization, the actual exchange of assets is expected to take place on November 21, 1997, or as soon thereafter as is practicable (the "Closing Date") on the basis of net asset values as of the close of business on the business day preceding the Closing Date (the "Valuation Date"). Under the Reorganization Agreement, all redemptions of shares of Daily Cash Fund shall be permanently suspended on the Valuation Date; only redemption requests received -27- in proper form on or prior to the close of business on that date shall be fulfilled by it; redemption requests received by Daily Cash Fund after that date will be treated as requests for redemptions of shares of Money Market Trust to be distributed to the shareholders requesting redemption. The exchange of assets for shares will be done on the basis of the per share net asset value of the shares of Money Market Trust, and the value of the assets of Daily Cash Fund to be transferred as of the close of business on the Valuation Date, valued in the manner used by Money Market Trust in the valuation of assets. Money Market Trust is not assuming any of the liabilities of Daily Cash Fund, except for portfolio securities purchased which have not settled and outstanding shareholder redemption and dividend checks. The net asset value of the shares transferred by Money Market Trust to Daily Cash Fund will be the same as the value of the assets received by Money Market Trust. For example, if, on the Valuation Date, Daily Cash Fund were to have securities with a market value of $95,000 and cash in the amount of $10,000 (of which $5,000 was to be retained by it as the Cash Reserve), the value of the assets which would be transferred to Money Market Trust would be $100,000. If the net asset value per share of Money Market Trust were $1.00 per share at the close of business on the Valuation Date, the number of shares to be issued would be 100,000 ($100,000 / $1.00). These 100,000 shares of Money Market Trust would be distributed to the former shareholders of Daily Cash Fund. This example is given for illustration purposes only and does not bear any relationship to the dollar amounts or shares expected to be involved in the Reorganization. In conjunction with the Closing, Daily Cash Fund will distribute on a pro rata basis to its shareholders of record on the Valuation Date the shares of Money Market Trust received by Daily Cash Fund at the Closing, in liquidation of the outstanding shares of Daily Cash Fund, and the outstanding shares of Daily Cash Fund will be canceled. To assist Daily Cash Fund in this distribution, Money Market Trust will, in accordance with a shareholder list supplied by Daily Cash Fund, cause its transfer agent to credit and confirm an appropriate number of shares of Money Market Trust to each shareholder of Daily Cash Fund. Certificates for shares of Money Market Trust will be issued upon written request of a former shareholder of Daily Cash Fund but only for whole shares with fractional shares credited to the name of the shareholder on the books of Money Market Trust, provided that shares represented by certificates are delivered for cancellation. Former shareholders of -28- Daily Cash Fund who wish to obtain certificates representing their shares of Money Market Trust must, after receipt of their confirmations, make a written request to SSI, P.O. Box 5143, Denver, Colorado 80217. Shareholders of Daily Cash Fund holding certificates representing their shares will not be required to surrender their certificates to anyone in connection with the Reorganization. After the Reorganization, however, it will be necessary for such shareholders to surrender such certificates in order to redeem, transfer, pledge or exchange any shares of Money Market Trust or in order to obtain a share certificate representing their interests in Money Market Trust. Under the Reorganization Agreement, within one year after the Closing Date, Daily Cash Fund shall: (a) either pay or make provision for all of its debts and taxes; and (b) either (i) transfer any remaining amount of the Cash Reserve to Money Market Trust, if such remaining amount is not material (as defined below) or (ii) distribute such remaining amount to the shareholders of Daily Cash Fund who were such on the Valuation Date. Such remaining amount shall be deemed to be material if the amount to be distributed, after deducting the estimated expenses of the distribution, equals or exceeds one cent per share of the number of Daily Cash Fund shares outstanding on the Valuation Date. Within one year after the Closing Date, Daily Cash Fund will complete its liquidation. Under the Reorganization Agreement, either Daily Cash Fund or Money Market Trust may abandon and terminate the Reorganization Agreement without liability for any reason except that in the event that either party terminates the Agreement without reasonable cause, the terminating party will be required, upon demand by the non- terminating party, to reimburse the non-terminating party for all expenses, including reasonable out-of-pocket expenses. In the event that the Reorganization Agreement is not consummated for any reason, the Board will consider and may submit to the shareholders other alternatives. MISCELLANEOUS Financial Information The Reorganization will be accounted for by the surviving Fund in its financial statements as a tax free reorganization. Further financial information as to Daily Cash Fund is contained in its -29- current Prospectus, which is available without charge from Shareholder Services, Inc., the Transfer Agent, P.O. Box 5143, Denver, Colorado 80217, and is incorporated herein by reference, and in its Annual Report as of December 31, 1996, both of which are included in the Additional Statement relating to this Reorganization. Financial information for Money Market Trust is contained in its current Prospectus accompanying this Proxy Statement and Prospectus and incorporated herein by reference, and in its Annual Report as of June 30, 1997, which is included in the Additional Statement. Public Information Additional information about Daily Cash Fund and Money Market Trust is available, as applicable, in the following documents which are incorporated herein by reference: (i) Money Market Trust's Prospectus dated October 1, 1997 accompanying this Proxy Statement and incorporated herein; (ii) Daily Cash Fund's Prospectus dated April 25, 1997, as supplemented on August 14, 1997, which may be obtained without charge by writing to Shareholder Services, Inc. , P.O. Box 5143, Denver, Colorado 80217; (iii) Money Market Trust's Annual Report as of June 30, 1997, which may be obtained without charge by writing to Shareholder Services, Inc. at the address indicated above; and (iv) Daily Cash Fund's Annual Report as of December 31, 1996, which may be obtained without charge by writing to Shareholder Services, Inc. at the address indicated above. All of the foregoing documents may be obtained by calling the toll-free number on the cover of this Proxy Statement and Prospectus. Additional information about the following matters is contained in the Statement of Additional Information relating to this Reorganization, which incorporates by reference the Money Market Trust Prospectus and Statement of Additional Information dated October 1, 1997 and Daily Cash Fund's Prospectus dated April 25, 1997, as supplemented August 14, 1997, and Statement of Additional Information dated April 25,1997, as revised May 12, 1997; the organization and operation of Money Market Trust and Daily Cash Fund; more information on investment policies, practices and risks; information about Daily Cash Fund's and Money Market Trust's Boards and their responsibilities; a further description of the services provided by Money Market Trust's and Daily Cash Fund's investment adviser, distributor, and transfer and shareholder servicing agent; dividend policies; tax matters; an explanation of the method of determining the offering price of the shares of Money Market Trust and Daily Cash Fund; purchase, redemption and exchange programs; -30- and distribution arrangements. Daily Cash Fund and Money Market Trust are subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and in accordance therewith, file reports and other information with the SEC. Proxy material, reports and other information about Daily Cash Fund and Money Market Trust which are of public record can be inspected and copied at public reference facilities maintained by the SEC in Washington, D.C. and certain of its regional offices, and copies of such materials can be obtained at prescribed rates from the Public Reference Branch, Office of Consumer Affairs and Information Services, SEC, Washington, D.C. 20549. OTHER BUSINESS Management of Daily Cash Fund knows of no business other than the matters specified above which will be presented at the Meeting. Since matters not known at the time of the solicitation may come before the Meeting, the proxy as solicited confers discretionary authority with respect to such matters as properly come before the Meeting, including any adjournment or adjournments thereof, and it is the intention of the persons named as attorneys-in-fact in the proxy to vote this proxy in accordance with their judgment on such matters. By Order of the Board of Directors Andrew J. Donohue, Secretary October 1, 1997 -31- EXHIBIT A AGREEMENT AND PLAN OF REORGANIZATION AGREEMENT AND PLAN OF REORGANIZATION (the "Agreement") dated as of ______________ 1997 by and between Daily Cash Accumulation Fund, Inc. ("Daily Cash Fund"), a Maryland corporation, and Centennial Money Market Trust ("Money Market Trust"), a Massachusetts business trust (the "Trust"). W I T N E S S E T H: WHEREAS, the parties are each open-end investment companies of the management type; and WHEREAS, the parties hereto desire to provide for the reorganization pursuant to Section 368(a)(1) of the Internal Revenue Code of 1986, as amended (the "Code"), of Daily Cash Fund through the acquisition by Money Market Trust of substantially all of the assets of Daily Cash Fund in exchange for the shares of beneficial interest of Money Market Trust and the assumption by Money Market Trust of certain liabilities of Daily Cash Fund, which shares of Money Market Trust are to be distributed by Daily Cash Fund pro rata to its shareholders in complete liquidation of Daily Cash Fund and in complete cancellation of its shares in connection with the dissolution of Daily Cash Fund; NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties hereto agree as follows: 1. The parties hereto hereby adopt this Agreement and Plan of Reorganization (the "Agreement") pursuant to Section 368(a)(1) of the Code as follows: The reorganization will be comprised of the acquisition by Money Market Trust of substantially all of the properties and assets of Daily Cash Fund in exchange for shares of Money Market Trust and the assumption by Money Market Trust of certain liabilities of Daily Cash Fund, followed by the distribution of such shares of Money Market Trust to the shareholders of Daily Cash Fund in exchange for their shares of Daily Cash Fund, all upon and subject to the terms of this Agreement as hereinafter set forth. The share transfer books of Daily Cash Fund will be A-1 permanently closed at the close of business on the Valuation Date (as hereinafter defined) and only redemption requests received in proper form on or prior to the close of business on the Valuation Date as defined herein shall be fulfilled by Daily Cash Fund; redemption requests received by Daily Cash Fund after that date shall be treated as requests for the redemption of the shares of Money Market Trust to be distributed to the shareholder in question as provided in Section 5. 2. On the Closing Date (as hereinafter defined), all of the assets of Daily Cash Fund on that date, excluding a cash reserve (the "Cash Reserve") to be retained by Daily Cash Fund sufficient in its discretion for the payment of the expenses of Daily Cash Fund's dissolution and its liabilities, but not in excess of the amount contemplated by Section 10E, shall be delivered as provided in Section 8 to Money Market Trust, in exchange for and against delivery to Daily Cash Fund on the Closing Date of a number of shares of Money Market Trust, having an aggregate net asset value equal to the value of the assets of Daily Cash Fund so transferred and delivered. 3. The net asset value of the shares of Money Market Trust and the value of the assets of Daily Cash Fund to be transferred shall in each case be determined as of the close of business of the New York Stock Exchange on the Valuation Date. The computation of the net asset value of the shares of Money Market Trust and the shares of Daily Cash Fund shall be done in the manner used by Money Market Trust and Daily Cash Fund, respectively, in the computation of such net asset value per share as set forth in their respective prospectuses. The methods used by Money Market Trust in such computation shall be applied to the valuation of the assets of Daily Cash Fund to be transferred to Money Market Trust. Daily Cash Fund shall declare and pay, immediately prior to the Valuation Date, a dividend or dividends which, together with all previous such dividends, shall have the effect of distributing to Daily Cash Fund's shareholders all of Daily Cash Fund's investment company taxable income for taxable years ending on or prior to the Closing Date (computed without regard to any dividends paid) and all of its net capital gain, if any, realized in taxable years ending on or prior to the Closing Date (after reduction for any capital loss carry-forward). 4. The closing (the "Closing") shall be at the offices of OppenheimerFunds, Inc. (the "Agent"), Two World Trade Center, 34th A-2 Floor, New York, New York 10048, at 4:00 P.M. New York time on November 21, 1997 or at such other time or place as the parties may designate or as provided below (the "Closing Date"). The business day preceding the Closing Date is herein referred to as the "Valuation Date." In the event that on the Valuation Date either party has, pursuant to the Investment Company Act of 1940, as amended (the "Act"), or any rule, regulation or order thereunder, suspended the redemption of its shares or postponed payment therefor, the Closing Date shall be postponed until the first business day after the date when both parties have ceased such suspension or postponement; provided, however, that if such suspension shall continue for a period of 60 days beyond the Valuation Date, then the other party to the Agreement shall be permitted to terminate the Agreement without liability to either party for such termination. 5. In conjunction with the closing, Daily Cash Fund shall distribute on a pro rata basis to the shareholders of Daily Cash Fund on the Valuation Date, the shares of Money Market Trust received by Daily Cash Fund on the Closing Date in exchange for the assets of Daily Cash Fund in complete liquidation of Daily Cash Fund; for the purpose of the distribution by Daily Cash Fund of shares of Money Market Trust to its shareholders, Money Market Trust will promptly cause its transfer agent to: (a) credit an appropriate number of shares of Money Market Trust on the books of Money Market Trust to each shareholder of Daily Cash Fund in accordance with a list of its shareholders (the "Shareholder List") received from Daily Cash Fund; and (b) confirm an appropriate number of shares of Money Market Trust to each shareholder of Daily Cash Fund. Certificates for shares of Money Market Trust will be issued upon written request of a former shareholder of Daily Cash Fund but only for whole shares, with fractional shares credited to the name of the shareholder on the books of Money Market Trust. The Shareholder List shall indicate, as of the close of business on the Valuation Date, the name and address of each shareholder of Daily Cash Fund, indicating his or her share balance. Daily Cash Fund agrees to supply the Shareholder List to Money Market Trust not later than the Closing Date. Shareholders of Daily Cash Fund holding certificates representing their shares shall not be required to surrender their certificates to anyone in connection with the reorganization. After the Closing Date, however, it will be necessary for such shareholders to surrender their certificates in order to redeem, transfer, exchange or pledge A-3 the shares of Money Market Trust which they received, or in order to obtain certificates representing their shares of Money Market Trust issued in connection with the Reorganization. 6. Within one year after the Closing Date, Daily Cash Fund shall (a) either pay or make provision for payment of all of its liabilities and taxes, and (b) either (i) transfer any remaining amount of the Cash Reserve to Money Market Trust, if such remaining amount (as reduced by the estimated cost of distributing it to shareholders) is not material (as defined below) or (ii) distribute such remaining amount to the shareholders of Daily Cash Fund on the Valuation Date. Such remaining amount shall be deemed to be material if the amount to be distributed, after deduction of the estimated expenses of the distribution, equals or exceeds one cent per share of Daily Cash Fund shares outstanding on the Valuation Date. 7. Prior to the Closing Date, there shall be coordination between the parties as to their respective portfolios so that, after the closing, Money Market Trust will be in compliance with all of its investment policies and restrictions. At the Closing, Daily Cash Fund shall deliver to Money Market Trust two copies of a list setting forth the securities then owned by Daily Cash Fund. Promptly after the Closing, Daily Cash Fund shall provide Money Market Trust a list setting forth the respective federal income tax bases thereof. 8. Portfolio securities or written evidence acceptable to Money Market Trust of record ownership thereof by The Depository Trust Company or through the Federal Reserve Book Entry System or any other depository approved by Daily Cash Fund pursuant to Rule 17f-4 and Rule 17f-5 under the Act shall be endorsed and delivered, or transferred by appropriate transfer or assignment documents, by Daily Cash Fund on the Closing Date to Money Market Trust, or at its direction, to its custodian bank, in proper form for transfer in such condition as to constitute good delivery thereof in accordance with the custom of brokers and shall be accompanied by all necessary state transfer stamps, if any. The cash delivered shall be in the form of certified or bank cashiers' checks or by bank wire or intra-bank transfer payable to the order of Money Market Trust for the account of Money Market Trust. Shares of Money Market Trust representing the number of shares of Money Market Trust being delivered against the assets of Daily Cash Fund, registered in the name of Daily Cash Fund, shall be transferred to Daily Cash Fund on the Closing Date. Such shares shall thereupon A-4 be assigned by Daily Cash Fund to its shareholders so that the shares of Money Market Trust may be distributed as provided in Section 5. If, at the Closing Date, Daily Cash Fund is unable to make delivery under this Section 8 to Money Market Trust of any of its portfolio securities or cash for the reason that any of such securities purchased by Daily Cash Fund, or the cash proceeds of a sale of portfolio securities, prior to the Closing Date have not yet been delivered to it or Daily Cash Fund's custodian, then the delivery requirements of this Section 8 with respect to said undelivered securities or cash will be waived and Daily Cash Fund will deliver to Money Market Trust by or on the Closing Date and with respect to said undelivered securities or cash executed copies of an agreement or agreements of assignment in a form reasonably satisfactory to Money Market Trust, together with such other documents, including a due bill or due bills and brokers' confirmation slips as may reasonably be required by Money Market Trust. 9. Money Market Trust shall not assume the liabilities (except for portfolio securities purchased which have not settled and for shareholder redemption and dividend checks outstanding) of Daily Cash Fund, but Daily Cash Fund will, nevertheless, use its best efforts to discharge all known liabilities, so far as may be possible, prior to the Closing Date. The cost of printing and mailing the proxies and proxy statements will be borne by Daily Cash Fund. Daily Cash Fund and Money Market Trust will bear the cost of their respective tax opinions, or, if a single tax opinion is issued to the parties, Daily Cash Fund and Money Market Trust will share equally the cost of such tax opinion. Any documents such as existing prospectuses or annual reports that are included in that mailing will be a cost of the fund issuing the document. Any other out-of-pocket expenses of Money Market Trust and Daily Cash Fund associated with this reorganization, including legal, accounting and transfer agent expenses, will be borne by Daily Cash Fund and Money Market Trust, respectively, in the amounts so incurred by each. 10. The obligations of Money Market Trust hereunder shall be subject to the following conditions: A. The Board of Directors of Daily Cash Fund shall have authorized the execution of the Agreement, and the shareholders of Daily Cash Fund shall have approved the Agreement and the A-5 transactions contemplated thereby, including, but not limited to, dissolution of Daily Cash Fund, and Daily Cash Fund shall have furnished to Money Market Trust copies of resolutions to that effect certified by the Secretary or an Assistant Secretary of Daily Cash Fund; such shareholder approval shall have been by the affirmative vote of a majority of the total number of shares of Daily Cash Fund outstanding and entitled to vote thereon at a meeting for which proxies have been solicited by the Proxy Statement and Prospectus (as hereinafter defined). B. Money Market Trust shall have received an opinion dated the Closing Date of counsel to Daily Cash Fund, to the effect that (i) Daily Cash Fund is a corporation duly organized, validly existing and in good standing under the laws of the State of Maryland with full powers to carry on its business as described in its Articles of Incorporation and as then being conducted and to enter into and perform the Agreement subject to usual and customary qualifications (Maryland counsel may be relied upon for this opinion); and (ii) that all action necessary to make the Agreement, according to its terms, valid, binding and enforceable on Daily Cash Fund and to authorize effectively the transactions contemplated by the Agreement have been taken by Daily Cash Fund subject to usual and customary qualifications. C. The representations and warranties of Daily Cash Fund contained herein shall be true and correct at and as of the Closing Date, and Money Market Trust shall have been furnished with a certificate of the President, or a Vice President, or the Secretary or the Assistant Secretary or the Treasurer of Daily Cash Fund, dated the Closing Date, to that effect. D. On the Closing Date, Daily Cash Fund shall have furnished to Money Market Trust a certificate of the Treasurer or Assistant Treasurer of Daily Cash Fund as to the amount of the capital loss carry-over and net unrealized appreciation or depreciation, if any, with respect to Daily Cash Fund as of the Closing Date. E. The Cash Reserve shall not exceed 10% of the value of the net assets, nor 30% in value of the gross assets, of Daily Cash Fund at the close of business on the Valuation Date. F. A Registration Statement on Form N-14 filed by Money Market Trust under the Securities Act of 1933, as amended (the "1933 Act"), containing a preliminary form of the Proxy Statement A-6 and Prospectus, shall have become effective under the 1933 Act not later than December 31,1997. G. On the Closing Date, Money Market Trust shall have received a letter of Andrew J. Donohue or other senior executive officer of Centennial Asset Management Corporation acceptable to Money Market Trust, stating that nothing has come to his or her attention which in his or her judgment would indicate that as of the Closing Date there were any material actual or contingent liabilities of Daily Cash Fund arising out of litigation brought against Daily Cash Fund or claims asserted against it, or pending or to the best of his or her knowledge threatened claims or litigation not reflected in or apparent from the most recent audited financial statements and footnotes thereto of Daily Cash Fund delivered to Money Market Trust. Such letter may also include such additional statements relating to the scope of the review conducted by such person and his or her responsibilities and liabilities as are not unreasonable under the circumstances. H. Money Market Trust shall have received an opinion, dated as of the Closing Date, of Deloitte & Touche LLP, to the same effect as the opinion contemplated by Section 11.E of the Agreement. I. Money Market Trust shall have received at the closing all of the assets of Daily Cash Fund to be conveyed hereunder, which assets shall be free and clear of all liens, encumbrances, security interests, restrictions and limitations whatsoever. 11. The obligations of Daily Cash Fund hereunder shall be subject to the following conditions: A. The Board of Trustees of Money Market Trust shall have authorized the execution of the Agreement, and the transactions contemplated thereby, and Money Market Trust shall have furnished to Daily Cash Fund copies of resolutions to that effect certified by the Secretary or an Assistant Secretary of Money Market Trust. B. Daily Cash Fund's shareholders shall have approved the Agreement and the transactions contemplated hereby, by an affirmative vote of the percentage of shares required by applicable Maryland law and Daily Cash Fund's charter documents, and Daily Cash Fund shall have furnished Money Market Trust copies of A-7 resolutions to that effect certified by the Secretary or an Assistant Secretary of Daily Cash Fund. C. Daily Cash Fund shall have received an opinion dated as of the Closing Date of counsel to Money Market Trust, to the effect that (i) Money Market Trust is a business trust duly organized, validly existing and in good standing under the laws of the Commonwealth of Massachusetts with full powers to carry on its business as described in its Declaration of Trust and as then being conducted and to enter into and perform the Agreement subject to usual and customary qualifications (Massachusetts counsel may be relied upon for this opinion); (ii) all action necessary to make the Agreement, according to its terms, valid, binding and enforceable upon Money Market Trust and to authorize effectively the transactions contemplated by the Agreement have been taken by Money Market Trust subject to usual and customary qualifications, and (iii) the shares of Money Market Trust to be issued hereunder are duly authorized and when issued will be validly issued, fully-paid and non-assessable, except as set forth in Money Market Trust's then current Prospectus and Statement of Additional Information. Massachusetts counsel may be relied upon for this opinion. D. The representations and warranties of Money Market Trust contained herein shall be true and correct at and as of the Closing Date, and Daily Cash Fund shall have been furnished with a certificate of the President, a Vice President or the Secretary or an Assistant Secretary or the Treasurer of Money Market Trust to that effect dated the Closing Date. E. Daily Cash Fund shall have received an opinion of Deloitte & Touche LLP to the effect that the Federal tax consequences of the transaction, if carried out in the manner outlined in this Plan of Reorganization and in accordance with (i) Daily Cash Fund's representation that there is no plan or intention by any Fund shareholder who owns 5% or more of Daily Cash Fund's outstanding shares, and, to Daily Cash Fund's best knowledge, there is no plan or intention on the part of the remaining Fund shareholders, to redeem, sell, exchange or otherwise dispose of a number of Money Market Trust shares received in the transaction that would reduce Daily Cash Fund shareholders' ownership of Money Market Trust shares to a number of shares having a value, as of the Closing Date, of less than 50% of the value of all of the formerly outstanding Fund shares as of the same date, and (ii) the representation by each of Daily Cash Fund and Money Market Trust A-8 that, as of the Closing Date, Daily Cash Fund and Money Market Trust will qualify as regulated investment companies or will meet the diversification test of Section 368(a)(2)(F)(ii) of the Code, will be as follows: 1. e transactions contemplated by the Agreement will qualify as a tax-free "reorganization" within the meaning of Section 368(a)(1) of the Code, and under the regulations promulgated thereunder. 2. Daily Cash Fund and Money Market Trust will each qualify as a "party to a reorganization" within the meaning of Section 368(b)(2) of the Code. 3. No gain or loss will be recognized by the shareholders of Daily Cash Fund upon the distribution of shares of beneficial interest in Money Market Trust to the shareholders of Daily Cash Fund pursuant to Section 354 of the Code. 4. Under Section 361(a) of the Code no gain or loss will be recognized by Daily Cash Fund by reason of the transfer of substantially all its assets in exchange for shares of Money Market Trust. 5. der Section 1032 of the Code no gain or loss will be recognized by Money Market Trust by reason of the transfer of substantially all Daily Cash Fund's assets in exchange for shares of Money Market Trust and Money Market Trust's assumption of certain liabilities of Daily Cash Fund. 6. he shareholders of Daily Cash Fund will have the same tax basis and holding period for the shares of beneficial interest in Money Market Trust that they receive as they had for Daily Cash Fund shares that they previously held, pursuant to Section 358(a) and 1223(1), respectively, of the Code. 7. he securities transferred by Daily Cash Fund to Money Market Trust will have the same tax basis and holding period in the hands of Money Market Trust as they had for Daily Cash Fund, pursuant to Section 362(b) and 1223(1), respectively, of the Code. F. The Cash Reserve shall not exceed 10% of the value of the net assets, nor 30% in value of the gross assets, of Daily Cash Fund at the close of business on the Valuation Date. A-9 G. A Registration Statement on Form N-14 filed by Money Market Trust under the 1933 Act, containing a preliminary form of the Proxy Statement and Prospectus, shall have become effective under the 1933 Act not later than December 31, 1997. H. On the Closing Date, Daily Cash Fund shall have received a letter of Andrew J. Donohue or other senior executive officer of Centennial Asset Management Corporation acceptable to Daily Cash Fund, stating that nothing has come to his or her attention which in his or her judgment would indicate that as of the Closing Date there were any material actual or contingent liabilities of Money Market Trust arising out of litigation brought against Money Market Trust or claims asserted against it, or pending or, to the best of his or her knowledge, threatened claims or litigation not reflected in or apparent by the most recent audited financial statements and footnotes thereto of Money Market Trust delivered to Daily Cash Fund. Such letter may also include such additional statements relating to the scope of the review conducted by such person and his or her responsibilities and liabilities as are not unreasonable under the circumstances. I. Daily Cash Fund shall acknowledge receipt of the shares of Money Market Trust. 12. Daily Cash Fund hereby represents and warrants that: A. The financial statements of Daily Cash Fund at December 31, 1996 (audited) as heretofore furnished to Money Market Trust, present fairly the financial position, results of operations, and changes in net assets of Daily Cash Fund as of that date, in conformity with generally accepted accounting principles applied on a basis consistent with the preceding year; and that from December 31, 1996 through the date hereof there have not been, and through the Closing Date there will not be, any material adverse change in the business or financial condition of Daily Cash Fund, it being agreed that a decrease in the size of Daily Cash Fund due to a diminution in the value of its portfolio and/or redemption of its shares shall not be considered a material adverse change; B. Contingent upon approval of the Agreement and the transactions contemplated thereby by Daily Cash Fund's shareholders, Daily Cash Fund has authority to transfer all of the assets of Daily Cash Fund to be conveyed hereunder free and clear of all liens, encumbrances, security interests, restrictions and A-10 limitations whatsoever; C. The Prospectus, as amended and supplemented, contained in Daily Cash Fund's Registration Statement under the 1933 Act, as amended, is true, correct and complete, conforms to the requirements of the 1933 Act and does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Registration Statement, as amended, was, as of the date of the filing of the last Post-Effective Amendment, true, correct and complete, conformed to the requirements of the 1933 Act and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; D. There is no material contingent liability of Daily Cash Fund and no material claim and no material legal, administrative or other proceedings pending or, to the knowledge of Daily Cash Fund, threatened against Daily Cash Fund, not reflected in such Prospectus; E. With the exception of this Agreement there are no material contracts outstanding to which Daily Cash Fund is a party other than those ordinary in the conduct of its business; F. Daily Cash Fund is a corporation duly organized, validly existing and in good standing under the laws of the state of Maryland; and has all necessary and material Federal and state authorizations to own all of its assets and to carry on its business as now being conducted; and Daily Cash Fund is duly registered under the Act and such registration has not been rescinded or revoked and is in full force and effect; G. All Federal and other tax returns and reports of Daily Cash Fund required by law to be filed have been filed, and all Federal and other taxes shown due on said returns and reports have been paid or provision shall have been made for the payment thereof and to the best of the knowledge of Daily Cash Fund no such return is currently under audit and no assessment has been asserted with respect to such returns and to the extent such tax returns with respect to the taxable year of Daily Cash Fund ended December 31, 1996 have not been filed, such returns will be filed when required and the amount of tax shown as due thereon shall be paid when due; and A-11 H. Daily Cash Fund has elected to be treated as a regulated investment company and, for each fiscal year of its operations, Daily Cash Fund has met the requirements of Subchapter M of the Code for qualification and treatment as a regulated investment company and Daily Cash Fund intends to meet such requirements with respect to its current taxable year. 13. Money Market Trust hereby represents and warrants that: A. The financial statements of Money Market Trust at December 31, 1996(unaudited) as heretofore furnished to Daily Cash Fund, present fairly the financial position, results of operations, and changes in net assets of Money Market Trust, as of that date, in conformity with generally accepted accounting principles applied on a basis consistent with the preceding year; and that from June 30, 1996 through the date hereof there have not been, and through the Closing Date there will not be, any material adverse changes in the business or financial condition of Money Market Trust, it being understood that a decrease in the size of Money Market Trust due to a diminution in the value of its portfolio and/or redemption of its shares shall not be considered a material or adverse change; B. The Prospectus, as amended and supplemented, contained in Money Market Trust's Registration Statement under the 1933 Act, is true, correct and complete, conforms to the requirements of the 1933 Act and does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Registration Statement, as amended, was, as of the date of the filing of the last Post-Effective Amendment, true, correct and complete, conformed to the requirements of the 1933 Act and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; C. There is no material contingent liability of Money Market Trust and no material claim and no material legal, administrative or other proceedings pending or, to the knowledge of Money Market Trust, threatened against Money Market Trust, not reflected in such Prospectus; D. With the exception of this Agreement, there are no material contracts outstanding to which Money Market Trust is a party other than those ordinary in the conduct of its business; A-12 E. Money Market Trust is a business trust duly organized, validly existing and in good standing under the laws of the Commonwealth of Massachusetts; has all necessary and material Federal and state authorizations to own all its properties and assets and to carry on its business as now being conducted; the shares of Money Market Trust which it issues to Daily Cash Fund pursuant to the Agreement will be duly authorized, validly issued, fully-paid and non-assessable, except as otherwise set forth in Money Market Trust's Registration Statement; and will conform to the description thereof contained in Money Market Trust's Registration Statement, will be duly registered under the 1933 Act and in the states where registration is required; and Money Market Trust is duly registered under the Act and such registration has not been revoked or rescinded and is in full force and effect; F. All Federal and other tax returns and reports of Money Market Trust required by law to be filed have been filed, and all Federal and other taxes shown due on said returns and reports have been paid or provision shall have been made for the payment thereof and to the best of the knowledge of Money Market Trust no such return is currently under audit and no assessment has been asserted with respect to such returns and to the extent such tax returns with respect to the taxable year of Money Market Trust ended June 30, 1997 have not been filed, such returns will be filed when required and the amount of tax shown as due thereon shall be paid when due; G. Money Market Trust has elected to be treated as a regulated investment company and, for each fiscal year of its operations, Money Market Trust has met the requirements of Subchapter M of the Code for qualification and treatment as a regulated investment company and Money Market Trust intends to meet such requirements with respect to its current taxable year; H. Money Market Trust has no plan or intention (i) to dispose of any of the assets transferred by Daily Cash Fund, other than in the ordinary course of business, or (ii) to redeem or reacquire any of the shares issued by it in the reorganization other than pursuant to valid requests of shareholders; and I. After consummation of the transactions contemplated by the Agreement, Money Market Trust intends to operate its business in a substantially unchanged manner. 14. Each party hereby represents to the other that no broker A-13 or finder has been employed by it with respect to the Agreement or the transactions contemplated hereby. Each party also represents and warrants to the other that the information concerning it in the Proxy Statement and Prospectus will not as of its date contain any untrue statement of a material fact or omit to state a fact necessary to make the statements concerning it therein not misleading and that the financial statements concerning it will present the information shown fairly in accordance with generally accepted accounting principles applied on a basis consistent with the preceding year. Each party also represents and warrants to the other that the Agreement is valid, binding and enforceable in accordance with its terms and that the execution, delivery and performance of the Agreement will not result in any violation of, or be in conflict with, any provision of any charter, by-laws, contract, agreement, judgment, decree or order to which it is subject or to which it is a party. Money Market Trust hereby represents to and covenants with Daily Cash Fund that, if the reorganization becomes effective, Money Market Trust will treat each shareholder of Daily Cash Fund who received any of Money Market Trust's shares as a result of the reorganization as having made the minimum initial purchase of shares of Money Market Trust received by such shareholder for the purpose of making additional investments in shares of Money Market Trust, regardless of the value of the shares of Money Market Trust received. 15. Money Market Trust agrees that it will prepare and file a Registration Statement on Form N-14 under the 1933 Act which shall contain a preliminary form of proxy statement and prospectus contemplated by Rule 145 under the 1933 Act. The final form of such proxy statement and prospectus is referred to in the Agreement as the "Proxy Statement and Prospectus." Each party agrees that it will use its best efforts to have such Registration Statement declared effective and to supply such information concerning itself for inclusion in the Proxy Statement and Prospectus as may be necessary or desirable in this connection. Daily Cash Fund covenants and agrees to deregister as an investment company under the Investment Company Act of 1940, as amended, as soon as practicable and to cause the cancellation of its outstanding shares at the Closing. 16. The obligations of the parties, their respective trustees, directors, officers, agents or others acting on their behalf under the Agreement shall be subject to the right of either party to abandon and terminate the Agreement for any reason and there shall be no liability for damages or other recourse available A-14 to a party not so terminating the Agreement, provided, however, that in the event that a party shall terminate this Agreement without reasonable cause, the party so terminating shall, upon demand, reimburse the party not so terminating for all expenses, including reasonable out-of-pocket expenses and fees incurred in connection with this Agreement. 17. The Agreement may be executed in several counterparts, each of which shall be deemed an original, but all taken together shall constitute one Agreement. The rights and obligations of each party pursuant to the Agreement shall not be assignable. 18. All prior or contemporaneous agreements and representations are merged into the Agreement, which constitutes the entire contract between the parties hereto. No amendment or modification hereof shall be of any force and effect unless in writing and signed by the parties and no party shall be deemed to have waived any provision herein for its benefit unless it executes a written acknowledgment of such waiver. 19. Daily Cash Fund understands that the obligations of Money Market Trust under the Agreement are not binding upon any Trustee or shareholder of Money Market Trust personally, but bind only Money Market Trust and Money Market Trust's property. Daily Cash Fund represents that it has notice of the provisions of the Declaration of Trust of Money Market Trust disclaiming shareholder and Trustee liability for acts or obligations of Money Market Trust. IN WITNESS WHEREOF, each of the parties has caused the Agreement to be executed and attested by its officers thereunto duly authorized on the date first set forth above. Centennial Money Market Trust By: ____________________________________ Andrew J. Donohue, Vice President Daily Cash Accumulation Fund, Inc. By: _____________________________________ George Bowen, Vice President A-15 EXHIBIT B DAILY CASH ACCUMULATION FUND, INC. AVERAGE ANNUAL TOTAL RETURNS AT JUNE 30, 1997(1) 1 Year 3 Years 5 Years 10 Years ------ ------- -------- --------- 4.96% 5.05% 4.20% 5.63% CENTENNIAL MONEY MARKET TRUST AVERAGE ANNUAL TOTAL RETURNS AT JUNE 30, 1997(1) 1 Year 3 Years 5 Years 10 Years ------ ------- -------- --------- 4.97% 5.10% 4.20% 5.58% (1) Reflects waiver of advisory fees and reimbursements and/or waivers of expenses. Without such reimbursements and/or waiver, the average annual total return during the period would have been lower. B-1 PRELIMINARY COPY Daily Cash Accumulation Fund, Inc. Proxy for Special Shareholders Meeting To Be Held November 18, 1997 Your shareholder vote is important! Your prompt response can save your Fund the expense of another mailing. Please mark your proxy on the reverse side, date and sign it, and return it promptly in the accompanying envelope, which requires no postage if mailed in the United States. Please detach at perforation before mailing. Daily Cash Accumulation Fund, Inc. PROXY FOR SPECIAL SHAREHOLDERS MEETING TO BE HELD NOVEMBER 18, 1997 The undersigned shareholder of Daily Cash Accumulation Fund, Inc.(the "Fund"), does hereby appoint Robert Bishop, George C. Bowen, Andrew J. Donohue and Scott Farrar, and each of them, as attorneys-in-fact and proxies of the undersigned, with full power of substitution, to attend the Special Meeting of the Shareholders of the Fund to be held on November 18, 1997, at 6803 South Tucson Way, Englewood, Colorado 80112 at 10:00 A.M., Denver time, and at all adjournments thereof, and to vote the shares held in the name of the undersigned on the record date for said meeting on the Proposal specified on the reverse side. Said attorneys-in-fact shall vote in accordance with their best judgment as to any other matter. PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS, WHO RECOMMENDS A VOTE FOR THE PROPOSAL ON THE REVERSE SIDE. THE SHARES REPRESENTED HEREBY WILL BE VOTED AS INDICATED ON THE REVERSE SIDE OR FOR IF NO CHOICE IS INDICATED. Please mark your proxy, date and sign it on the reverse side and return it promptly in the accompanying envelope, which requires no postage if mailed in the United States. (Over) 140 Daily Cash Accumulation Fund, Inc. Proxy for Special Shareholders Meeting To Be Held November 18, 1997 Your shareholder vote is important! Your prompt response can save your Fund money. Please vote, sign and mail your proxy ballot (this card) in the enclosed postage-paid envelope today, no matter how many shares you own. A majority of the Fund's shares must be represented in person or by proxy. Please vote your proxy so your Fund can avoid the expense of another mailing. Please detach at perforation before mailing. The Proposal: To approve an Agreement and Plan of Reorganization between the Fund and Centennial Money Market Trust ("Money Market Trust"), and the transactions contemplated thereby, including (a) the transfer of substantially all the assets of the Fund in exchange for shares of Money Market Trust, (b) the distribution of such shares to the shareholders of the Fund in complete liquidation of the Fund, (c) the de-registration of the Fund as an investment company under the Investment Company Act of 1940, as amended, and (d) the dissolution of the Fund and the cancellation of the outstanding shares of the Fund. o FOR o AGAINST o ABSTAIN NOTE: PLEASE SIGN EXACTLY AS YOUR NAME(S) APPEAR ON THIS PROXY. When signing as custodian, attorney, executor, administrator, trustee, etc., please give your full title as such. All joint owners should sign this proxy. If the account is registered in the name of a corporation, partnership or other entity, a duly authorized individual must sign on its behalf and give his or her title. Dated: ___________________________, 1997 (Month) (Day) --------------------------------------- Signature(s) --------------------------------------- Signature(s) Please read both sides of this ballot 140 CENTENNIAL MONEY MARKET TRUST 6803 South Tucson Way Englewood, Colorado 80112 1-800-525-7048 STATEMENT OF ADDITIONAL INFORMATION October 1, 1997 ----------------------------------- This Statement of Additional Information of Centennial Money Market Trust (the "Registrant") consists of this cover page and the following documents: 1. Statement of Additional Information of Registrant dated November 1, 1996 2. Prospectus of Daily Cash Accumulation Fund, Inc. dated April 25, 1997, as supplemented August 14, 1997 3. Statement of Additional Information of Daily Cash Accumulation Fund, Inc. dated April 25, 1997, as revised May 12, 1997 4. Annual Report of Registrant as of June 30, 1997 5. Annual Report of Daily Cash Accumulation Fund, Inc. as of December 31, 1996 6. Semiannual Report of Daily Cash Accumulation Fund, Inc. as of December 31, 1996 7. Pro Forma Financial Statements, including Pro Forma Statement of Investments: Daily Cash Accumulation Fund, Inc. into the Registrant This Statement of Additional Information (the "Additional Statement") is not a Prospectus. This Additional Statement should be read in conjunction with the Proxy Statement and Prospectus of the Registrant dated October 1, 1997, which may be obtained by written request to Shareholder Services, Inc. P.O. Box 5143, Denver, Colorado 80217, or by calling at the toll-free number shown above. Centennial Money Market Trust 3410 South Galena Street, Denver, Colorado 80231 1-800-525-9310 Statement of Additional Information dated November 1, 1996 This Statement of Additional Information is not a Prospectus. This document contains additional information about the Trust and supplements information in the Prospectus dated November 1, 1996. It should be read together with the Prospectus which may be obtained by writing to the Trust's Transfer Agent, Shareholder Services, Inc. at P.O. Box 5143, Denver, Colorado 80217- 5143 or by calling the Transfer Agent at the toll-free number shown above. Contents Page Investment Objective and Policies...........................................2 Other Investment Restrictions...............................................4 Appendix Trustees and Officers.................................................A-1 Investment Management Services........................................A-5 Service Plan..........................................................A-8 Purchase, Redemption and Pricing of Shares............................A-10 Exchange of Shares....................................................A-11 Yield Information.....................................................A-13 Additional Information................................................A-14 Independent Auditors' Report..........................................A-16 Financial Statements..................................................A-17 Exhibit A: Description of Securities Ratings........................A-37 Exhibit B: Industry Classifications.................................A-42 Exhibit C: Automatic Withdrawal Plan Provisions.....................A-43 -1- Investment Objective and Policies Investment Policies and Strategies. The investment objective and policies of the Trust are described in the Prospectus. Set forth below is supplemental information about those policies. Certain capitalized terms used in this Statement of Additional Information are defined in the Prospectus. The Trust will not make investments with the objective of seeking capital growth. However, the value of the securities held by the Trust may be affected by changes in general interest rates. Because the current value of debt securities varies inversely with changes in prevailing interest rates, if interest rates increase after a security is purchased, that security would normally decline in value. Conversely, should interest rates decrease after a security is purchased, its value would rise. However, those fluctuations in value will not generally result in realized gains or losses to the Trust since the Trust does not usually intend to dispose of securities prior to their maturity. A debt security held to maturity is redeemable by its issuer at full principal value plus accrued interest. To a limited degree, the Trust may engage in short-term trading to attempt to take advantage of short-term market variations, or may dispose of a portfolio security prior to its maturity if, on the basis of a revised credit evaluation of the issuer or other considerations, the Trust believes such disposition advisable or it needs to generate cash to satisfy redemptions. In such cases, the Trust may realize a capital gain or loss. Bank Obligations. The Trust may invest in the bank obligations described in the Prospectus. In addition, the Trust may invest in certificates of deposit of $100,000 or less of a domestic bank, regardless of asset size, if such certificate of deposit is fully insured as to principal by the Federal Deposit Insurance Corporation. At no time will the Trust hold more than one certificate of deposit from any such bank. Because of the limited marketability of such certificates of deposit, no more than 10% of the Trust's net assets will be invested in certificates of deposit of $100,000 or less of a bank having total assets less than $1 billion. U.S. Government Securities. Obligations of certain U.S. Government agencies and instrumentalities may not be guaranteed or supported by the full faith and credit of the United States. Some obligations are backed only by the right of the issuer to borrow from the U.S. Treasury; others by discretionary authority of the U.S. Government to purchase the agency's obligations; while still others are supported only by the credit of the instrumentality. In the case of securities not backed by the full faith and credit of the United States, the Trust must look to the agency issuing or guaranteeing the obligation for repayment and may not be able to assert a claim against the United States if the agency does not meet its commitments. The Trust will invest in securities of such instrumentalities only when the Trust's investment manager, Centennial Asset Management Corporation (the "Manager"), is satisfied that the credit risk with respect to the instrumentality is minimal. Floating Rate/Variable Rate Obligations. The Trust may invest in instruments with floating or variable interest rates. The interest rate on a floating rate obligation is based on a stated prevailing market rate, such as a bank's prime rate, the 91-day U.S. Treasury Bill rate, the rate of return on commercial paper or bank certificates of deposit, or some other standard, and is adjusted -2- automatically each time such market rate is adjusted. The interest rate on a floating rate demand note is based on a stated prevailing market rate, such as the PSA Municipal Swap Index or the J.J. Kenney Index, or some other standard, and is adjusted automatically each time such rate is adjusted. The interest rate on a variable rate demand note is also bases on a stated prevailing market rate but is adjusted automatically at a specified interval of no less than one year. Some variable rate or floating rate obligations in which the Trust may invest have a demand feature entitling the holder to demand payment at an amount approximately equal to amortized cost or the principal amount thereof plus accrued interest at any time, or at specified intervals not exceeding one year. These notes may or may not be backed by bank letters of credit. Variable rate demand notes may include master demand notes discussed below. The Manager, on behalf of the Trust, will consider on an ongoing basis the creditworthiness of the issuers of the floating and variable rate obligations in the Trust's portfolio. Master Demand Notes. A master demand note is a corporate obligation that permits the investment of fluctuating amounts by the Trust at varying rates of interest pursuant to direct arrangements between the Trust, as lender, and the corporate borrower that issues the note. These notes permit daily changes in the amounts borrowed. The Trust has the right to increase the amount under the note at any time up to the full amount provided by the note agreement, or to decrease the amount, and the borrower may repay up to the full amount of the note at any time without penalty. Because variable amount master demand notes are direct lending arrangements between the lender and the borrower, it is not generally contemplated that such instruments will be traded. There is no secondary market for these notes, although they are redeemable and thus immediately repayable by the borrower at face value, plus accrued interest, at any time. Accordingly, the Trust's right to redeem is dependent on the ability of the borrower to pay principal and interest on demand. In evaluating the master demand note arrangements, the Manager considers the earning power, cash flow, and other liquidity ratios of the issuer. Master demand notes are not typically rated by credit rating agencies. If they are not rated, the Trust may invest in them only if, at the time of an investment, they are Eligible Securities. The Manager will continuously monitor the borrower's financial ability to meet all of its obligations because the Trust's liquidity might be impaired if the borrower were unable to pay principal and interest on demand. Repurchase Agreements. In a repurchase transaction, the Trust acquires a security from, and simultaneously resells it to, an approved vendor (a U.S. commercial bank or the U.S. branch of a foreign bank having total domestic assets of at least $1 billion or a broker-dealer with a net capital of at least $50 million and which has been designated a primary dealer in government securities). The resale price exceeds the purchase price by an amount that reflects an agreed-upon interest rate effective for the period during which the repurchase agreement is in effect. The majority of these transactions run from day to day, and delivery pursuant to the resale typically will occur within one to five days of the purchase. Repurchase agreements are considered "loans" under the Investment Company Act, collateralized by the underlying security. The Trust's repurchase agreements require that at all times while the repurchase agreement is in effect, the value of the collateral must equal or exceed the repurchase price to fully collateralize the repayment obligation. Additionally, the Manager will impose creditworthiness requirements to confirm that the vendor is financially sound and will continuously monitor the collateral's value. -3- Loans of Portfolio Securities. To attempt to increase its income for liquidity purposes, the Trust may lend its portfolio securities to qualified borrowers (other than in repurchase transactions) if the loan is collateralized in accordance with applicable regulatory requirements, and if, after any loan, the value of the securities loaned does not exceed 25% of the value of the Trust's total assets. The Trust will not enter into any securities lending agreements having a duration of greater than one year. Any securities received as collateral for a loan must mature in twelve months or less. The Trust presently does not intend that the value of securities loaned will exceed 5% of the value of the Trust's net assets in the coming year. Under applicable regulatory requirements (which are subject to change), the loan collateral must, on each business day, at least equal the market value of the loaned securities and must consist of cash, bank letters of credit or U.S. Government Securities or other cash equivalents which the Fund is permitted to purchase. To be acceptable as collateral, letters of credit must obligate a bank to pay amounts demanded by the Trust if the demand meets the terms of the letter. The Trust receives an amount equal to the dividends or interest on loaned securities and also receives one or more of (a) negotiated loan fees, (b) interest on securities used as collateral, or (c) interest on short-term debt securities purchased with such loan collateral; either type of interest may be shared with the borrower. The Trust may also pay reasonable finder's, custodian and administrative fees and will not lend its portfolio securities to any officer, trustee, employee or affiliate of the Trust or the Manager. The terms of the Trust's loans must meet applicable tests under the Internal Revenue Code and permit the Trust to reacquire loaned securities on five days' notice or in time to vote on any important matter. Ratings of Securities. The prospectus describes "Eligible Securities" in which the Trust may invest and indicates that if a security's rating is downgraded, the Manager and/or the Board may have to reassess the security's credit risks. If a security has ceased to be a First Tier Security, the Manager will promptly reassess whether the security continues to present "minimal credit risks." If the Manager becomes aware that any Rating Organization has downgraded its rating of a Second Tier Security or rated an unrated security below its second highest rating category, the Trust's Board of Trustees shall promptly reassess whether the security presents minimal credit risks and whether it is in the best interests of the Trust to dispose of it. If a security is in default, or ceases to be an Eligible Security, or is determined no longer to present minimal credit risks, the Board must determine whether it would be in the best interests of the Trust to dispose of the security. In each of the foregoing instances, Board action is not required if the Trust disposes of the security within five days of the Manager learning of the downgrade, in which event the Manager will provide the Board with subsequent notice of such downgrade. The Rating Organizations currently designated as such by the Securities and Exchange Commission ("SEC") are Standard & Poor's Corporation, Moody's Investors Service, Inc., Fitch Investors Services, Inc., Duff and Phelps, Inc., IBCA Limited and its affiliate, IBCA, Inc., and Thomson BankWatch, Inc. A description of the ratings categories of those Rating Organizations is contained in Exhibit A. Other Investment Restrictions The Trust's significant investment restrictions are described in the Prospectus. The following investment restrictions are also fundamental investment policies and, together with the fundamental -4- policies and restrictions described in the Prospectus, cannot be changed without the vote of a "majority" of the Trust's outstanding shares. Under the Investment Company Act, such a "majority" vote is defined as the vote of the holders of the lesser of: (i) 67% or more of the shares present or represented by proxy at a shareholder's meeting, if the holders of more than 50% of the outstanding shares are present or represented by proxy, or (ii) more than 50% of the outstanding shares. Under these additional restrictions, the Trust cannot: (1) invest in commodities or commodity contracts or invest in interests in oil, gas or other mineral exploration or mineral development programs; (2) invest in real estate; however the Trust may purchase debt securities issued by companies which invest in real estate or interests therein; (3) purchase securities on margin or make short sales of securities; (4) invest in or hold securities of any issuer if those officers and Trustees of the Trust or the Manager who beneficially own individually more than 0.5% of the securities of such issuer together own more than 5% of the securities of such issuer; (5) underwrite securities of other companies; or (6) invest in securities of other investment companies, except in connection with a consolidation or merger. For purposes of the Trust's policy not to concentrate in securities of issuers as described in the investment restrictions listed in the Prospectus, the Trust has adopted the industry classification set forth in Exhibit B to this Statement of Additional Information. This is not a fundamental policy. -5- APPENDIX This Appendix is part of the Statement of Additional Information of Centennial Money Market Trust ("Money Market Trust"), Centennial Tax Exempt Trust ("Tax Exempt Trust") and Centennial Government Trust ("Government Trust"), each of which is referred to in this Appendix individually as a "Trust" and collectively are referred to as the "Trusts." Unless otherwise indicated, the information in this Appendix applies to each Trust. Trustees and Officers The Trustees and officers of the Trusts and their principal business affiliations and occupations during the past five years are listed below. All Trustees are Trustees of each of the Trusts. The Trustees are also trustees, directors, or managing general partners of Centennial America Fund, L.P., Centennial California Tax Exempt Trust, Centennial New York Tax Exempt Trust, Daily Cash Accumulation Fund, Inc., Oppenheimer Cash Reserves, Oppenheimer Champion Income Fund, Oppenheimer Equity Income Fund, Oppenheimer High Yield Fund, Oppenheimer Integrity Funds, Oppenheimer International Bond Fund, Oppenheimer Limited-Term Government Fund, Oppenheimer Main Street Funds, Inc., Oppenheimer Municipal Fund, Oppenheimer Strategic Income Fund, Oppenheimer Strategic Income & Growth Fund, Oppenheimer Total Return Fund, Inc., Oppenheimer Total Return Fund, Inc. Capital Accumulation Plan, Oppenheimer Variable Account Funds, Panorama Series Fund, Inc. and The New York Tax Exempt Income Fund, Inc. (all of the foregoing funds are collectively referred to as the "Denver Oppenheimer funds") except for Mr. Fossel and Ms. Macaskill, who are Trustees, Directors or Managing Partners of all the Denver-based Oppenheimer funds except Oppenheimer Integrity Funds, Oppenheimer Strategic Income Fund, Oppenheimer Variable Account Funds and Panorama Series Fund Inc. Mr. Fossel is also not a trustee of Centennial New York Tax Exempt Trust and he is not a Managing General Partner of Centennial America Fund, L.P. Ms. Macaskill is President and Mr. Swain is Chairman of the Denver Oppenheimer funds. All of the officers except Mr. Carbuto, Ms. Wolf, Mr. Zimmer and Ms. Warmack hold similar positions with each of the Denver Oppenheimer funds. As of October 1, 1996, the Trustees and officers of the Trust in the aggregate owned less than 1% of the outstanding shares of the Trust. ROBERT G. AVIS, Trustee*; Age 65 One North Jefferson Avenue, St. Louis, Missouri 63103 Vice Chairman of A.G. Edwards & Sons, Inc. (a broker-dealer) and A.G. Edwards, Inc. (its parent holding company); Chairman of A.G.E. Asset Management and A.G. Edwards Trust Company (its affiliated investment advisor and trust company, respectively). WILLIAM A. BAKER, Trustee; Age 81 197 Desert Lakes Drive, Palm Springs, California 92264 Management Consultant. CHARLES CONRAD, JR., Trustee; Age 66 1501 Quail Street, Newport Beach, California 92660 Chairman and Chief Executive Officer of Universal Space Lines, Inc. (A space services management company); formerly, Vice President of McDonnell Douglas Space Systems Co. and associated with National Aeronautics and Space Administration. JON S. FOSSEL, Trustee*; Age 54 Box 44 Mead Street, Waccabuc, New York 10597 Member of the Board of Governors of the Investment Company Institute (a national trade association of investment companies), Chairman of the Investment Company Institute Education Foundation; Formerly Chairman and a director of OppenheimerFunds, Inc. ("OFI"), the immediate parent of Centennial Asset Management Corporation ("Manager"); formerly President and a director of Oppenheimer Acquisition Corp.("OAC"), OFI's parent holding company; formerly a director of Shareholder Services, Inc. ("SSI") and Shareholder Financial Services, Inc. ("SFSI"), transfer agent subsidiaries of OFI. SAM FREEDMAN, Trustee; Age 56 4975 Lakeshore Drive, Littleton, Colorado 80123 Formerly, Chairman and Chief Executive Officer of OppenheimerFunds Services (a transfer agent); Chairman, Chief Executive Officer and a director of SSI; Chairman, Chief Executive Officer and director of Shareholder Financial Services, Inc. ("SFSI"); Vice President and a director of OAC and a director of OFI. RAYMOND J. KALINOWSKI, Trustee; Age 67 44 Portland Drive, St. Louis, Missouri 63131 Director of Wave Technologies International, Inc.(a computer products training company), formerly Vice Chairman and a director of A.G. Edwards, Inc., parent holding company of A.G. Edwards & Sons, Inc. (a broker-dealer), of which he was a Senior Vice President. C. HOWARD KAST, Trustee; Age 74 2552 E. Alameda, Denver, Colorado 80209 Formerly Managing Partner of Deloitte, Haskins & Sells (an accounting firm). ROBERT M. KIRCHNER, Trustee; Age 75 7500 East Arapahoe Road, Englewood, Colorado 80112 President of The Kirchner Company (management consultants). BRIDGET A. MACASKILL, President and Trustee*; Age 48 Two World Trade Center, New York, New York 10048-0203 President, Chief Executive Officer and a director of the OFI and HarbourView Asset Management Corporation ("HarbourView"), a subsidiary of OFI; Chairman and a director of SSI and SFSI; President and a director of OAC and Oppenheimer Partnership Holdings Inc., a holding company subsidiary of OFI; a director of Oppenheimer Real Asset Management, Inc. ("Real Asset"); formerly an Executive Vice President of OFI. NED M. STEEL, Trustee; Age 81 3416 South Race Street, Englewood, Colorado 80110 Chartered Property and Casualty Underwriter; Director of Visiting Nurse Corporation of A-6 Colorado; formerly Senior Vice President and a director of the Van Gilder Insurance Corp. (insurance brokers). JAMES C. SWAIN, Chairman, Chief Executive Officer and Trustee*; Age 62 3410 South Galena Street, Denver, Colorado 80231 Vice Chairman of OFI; formerly President and a director of the Manager, and formerly Chairman of the Board of SSI. MICHAEL A. CARBUTO, Vice President and Portfolio Manager of Tax Exempt Trust; Age 41 Two World Trade Center, New York, New York 10048-0203 Vice President of the Manager and OFI; an officer of other Oppenheimer funds. DOROTHY WARMACK, Vice President and Portfolio Manager of Money Market Trust and Government Trust; Age 60 3410 South Galena Street, Denver, Colorado 80231 Vice President of the Manager and OFI; an officer of other Oppenheimer funds. CAROL E. WOLF, Vice President and Portfolio Manager of Money Market Trust and Government Trust; Age 44 3410 South Galena Street, Denver, Colorado 80231 Vice President of the Manager and OFI; an officer of other Oppenheimer funds. ARTHUR J. ZIMMER, Vice President and Portfolio Manager of Money Market Trust and Government Trust; Age 50 3410 South Galena Street, Denver, Colorado 80231 Vice President of the Manager and OFI; an officer of other Oppenheimer funds. ANDREW J. DONOHUE, Vice President and Secretary; Age 46 Two World Trade Center, New York, New York 10048-0203 Executive Vice President and General Counsel of OFI and OppenheimerFunds Distributor, Inc. ("OFDI"); President and a director of the Manager; Executive Vice President, General Counsel and a director of HarbourView, SFSI, SSI and Oppenheimer Partnership Holdings Inc.; President and a director of Real Asset; General Counsel of OAC; Executive Vice President, Chief Legal Officer and a director of MultiSource Services, Inc. (A broker-dealer); an officer of other Oppenheimer funds; formerly Senior Vice President and Associate General Counsel of OFI and OFDI; Partner in Kraft & McManimon (a law firm); an officer of First Investors Corporation (a broker-dealer) and First Investors Management Company, Inc. (broker-dealer and investment advisor); director and an officer of First Investors Family of Funds and First Investors Life Insurance Company. GEORGE C. BOWEN, Vice President, Treasurer and Assistant Secretary; Age 60 3410 South Galena Street, Denver, Colorado 80231 Senior Vice President and Treasurer of OFI; Vice President and Treasurer of OFDI and HarbourView; Senior Vice President, Treasurer Assistant Secretary and a director of the Manager; Vice President, Treasurer and Secretary of SSI and SFSI; Treasurer of OAC; Vice A-7 President and Treasurer of Real Asset; Chief Executive Officer, Treasurer and a director of MultiSource Services, Inc.; an officer of other Oppenheimer funds. ROBERT J. BISHOP, Assistant Treasurer; Age 37 3410 South Galena Street, Denver, Colorado 80231 Vice President of the OFI/Mutual Fund Accounting; an officer of other Oppenheimer funds; formerly a Fund Controller for OFI, prior to which he was an Accountant for Yale & Seffinger, P.C., an accounting firm, and previously an Accountant and Commissions Supervisor for Stuart James Company, Inc., a broker-dealer. SCOTT T. FARRAR, Assistant Treasurer; Age 31 3410 South Galena Street, Denver, Colorado 80231 Vice President of OFI/Mutual Fund Accounting; an officer of other Oppenheimer funds; formerly a Fund Controller for OFI, prior to which he was an International Mutual Fund Supervisor for Brown Brothers, Harriman Co., a bank, and previously a Senior Fund Accountant for State Street Bank & Trust Company. ROBERT G. ZACK, Assistant Secretary; Age 48 Two World Trade Center, New York, New York 10048-0203 Senior Vice President and Associate General Counsel of OFI; Assistant Secretary of SSI and SFSI; an officer of other Oppenheimer funds. - --------------------- * A Trustee who is an "interested person" of the Trusts as defined in the Investment Company Act. Remuneration of Trustees. The officers of the Trusts are affiliated with the Manager. They and the Trustees of the Trusts who are affiliated with the Manager (Ms. Macaskill and Mr. Swain) receive no salary or fee from the Trusts. The remaining Trustees of the Trusts (excluding Mr. Freedman, who did not become a Trustee until June 27, 1996) received the compensation shown below from the Trusts, during its fiscal year ended June 30, 1996, and from all of the Denver-based Oppenheimer funds (including the Trust) for which they served as Trustee, Director or Managing General Partner. Compensation is paid for services in the positions listed beneath their names:
Aggregate Aggregate Aggregate Total Compensation Compensation Compensation Compensation from the from the from the from all Money Market Tax Exempt Government Denver-based Name and Position Trust Trust Trust Oppenheimer funds1 - ----------------- ------------ ------------ ------------- ------------------ Robert G. Avis $2,495 $2,147 $ 941 $53,000 Trustee William A. Baker $3,449 $2,968 $1,300 $73,255 Audit and Review A-8 Committee Chairman and Trustee Charles Conrad, Jr. $3,028 $2,605 $1,142 $64,309 Audit and Review Committee Member and Trustee Raymond J. Kalinowski $3,061 $2,633 $1,154 $65,000 Risk Management Oversight Committee Member and Trustee C. Howard Kast $3,061 $2,633 $1,154 $65,000 Risk Management Oversight Committee Member and Trustee Robert M. Kirchner $3,215 $2,766 $1,212 $68,292 Audit and Review Committee Member and Trustee Ned M. Steel $2,495 $2,147 $ 941 $53,000 Trustee 1 For the 1995 calendar year during which the Denver-based Oppenheimer funds listed in the first paragraph of this section included Oppenheimer Strategic Investment Grade Bond Fund and Oppenheimer Strategic Short-Term Income Fund (which ceased operations following the acquisition of their assets by other Oppenheimer funds.)
Major Shareholders. As of October 1, 1996, A.G. Edwards & Sons, Inc. ("A.G. Edwards"), 1 North Jefferson Avenue, St. Louis, MO 63103 was the record owner of 7,293,504,730.510 shares of Money Market Trust, 1,472,207,497 shares of Tax Exempt Trust and 978,301,664 shares of Government Trust (approximately 99.85%, 97.81 and 96.82% of outstanding shares, respectively, of these Trusts). A.G. Edwards has advised the Trusts that all such shares are held for the benefit of brokerage clients and that no such client owned beneficially 5% or more of the outstanding shares of any of the Trusts. Investment Management Services The Manager is wholly-owned by OFI, which is a wholly-owned subsidiary of Oppenheimer Acquisition Corp. ("OAC"), a holding company controlled by Massachusetts Mutual Life Insurance Company. The remaining stock of OAC is owned by (i) certain of OFI's directors and officers, some of whom may serve as officers of the Trust, and two of whom (Mr. Swain and Ms. Macaskill) serve as Trustees of the Trust and (ii) Edwards, which owns less than 5% of its equity. A-9 The management fee is payable monthly to the Manager under the terms of the investment advisory agreements between the Manager and each Trust (collectively, the "Agreements"), and is computed on the aggregate net assets of the respective Trust as of the close of business each day. The management fees paid to the Manager by the Trusts during their last three fiscal periods were as follows: (a) $9,435,959, $12,657,193 and $21,572,5143 paid for the fiscal years ended June 30, 1994, 1995 and 1996, respectively, of Money Market Trust; (b) $4,761,673, $5,050,991 and $6,380,737 paid for the fiscal years ended June 30, 1994, 1995 and 1996, respectively, of Tax Exempt Trust; and (c) $3,182,956, $3,414,212 and $4,468,617 paid for the fiscal years ended June 30, 1994, 1995 and 1996, respectively, of Government Trust. The Agreements require the Manager, at its expense, to provide the Trusts with adequate office space, facilities and equipment, and to provide and supervise the activities of all administrative and clerical personnel required to provide effective administration for the Trusts, including the compilation and maintenance of records with respect to operations, the preparation and filing of specified reports, and the composition of proxy materials and registration statements for continuous public sale of shares of the Trusts. Expenses not expressly assumed by the Manager under the Agreements or as Distributor of the shares of the Trusts, are paid by the Trusts. The Agreements list examples of expenses paid by the Trusts, the major categories of which relate to interest, taxes, certain insurance premiums, fees to unaffiliated Trustees, legal, bookkeeping and audit expenses, brokerage, custodian and transfer agent expenses, share issuance costs, certain printing costs (excluding the cost of printing prospectuses for sales materials) and registration fees, and non-recurring expenses, including litigation. Under its Agreements with the Money Market Trust and the Government Trust, respectively, the Manager has agreed to reimburse each Trust to the extent that the Trust's total expenses (including the management fee but excluding interest, taxes, brokerage commissions, and extraordinary expenses such as litigation costs) exceed in any fiscal year the lesser of: (i) 1.5% of average annual net assets of the Trust up to $30 million plus 1% of the average annual net assets in excess of $30 million or; (ii) 25% of the total annual investment income of the Trust. Independently of the Money Market Trust's Agreement, the Manager has voluntarily agreed to waive a portion of the management fee otherwise payable to it by the Money Market Trust to the extent necessary to: (a) permit the Money Market Trust to have a seven-day yield at least equal to that of Daily Cash Accumulation Fund, Inc., and (b) to reduce, on an annual basis, the management fee paid on the average net assets of the Trust in excess of $1 billion from 0.40% to: 0.40% of average net assets in excess of $1 billion but less than $1.25 billion; 0.375% of average net assets in excess of $1.25 billion but less than $1.50 billion; 0.35% of average net assets in excess of $1.50 billion but less than $2 billion; and 0.325% of average net assets in excess of $2 billion. This undertaking became effective as of December 1, 1991, and may be modified or terminated by the Manager any time. For fiscal year ended June 30, 1994, June 30, 1995 and June 30, 1996, the reimbursements by the Manager to Money Market Trust were $1,201,403, $0 and $0, respectively. Under its Agreement with Tax Exempt Trust, the Manager has agreed to assume that Trust's expenses to the extent that the total expenses (as described above) of the Trust exceed the most A-10 stringent limits prescribed by any state in which the Trust's shares are offered for sale. The payment of the management fee at the end of any month will be reduced so that at no time will there be any accrued but unpaid liabilities under any of these expense assumptions. No reimbursement or assumption was necessary by the Manager to Government Trust during its three most recent fiscal years. The Agreements permit the Manager to act as investment advisor for any other person, firm or corporation. The Tax Exempt Trust Agreement provides that the Manager assumes no responsibility under the Agreement other than that which is imposed by law, and shall not be responsible for any action of the Board of Trustees of the Trust in following or declining to follow any advice or recommendations of the Manager. The Agreement provides that the Manager shall not be liable for any error of judgment or mistake of law, or for any loss suffered by the Trust in connection with matters to which the Agreement relates, except a loss resulting by reason of the Manager's willful misfeasance, bad faith or gross negligence in the performance of its duties, or its reckless disregard of its obligations and duties under the Agreement. The Agreements of Money Market Trust and Government Trust provide that the Manager shall not be liable for any loss sustained by reason of the adoption of an investment policy or the purchase, sale or retention of any security on its recommendation, whether or not such recommendation shall have been based upon its own investigation and research or upon investigation and research made by any other individual, firm or corporation, if such recommendation shall have been made and such other individual, firm or corporation shall have been selected with due care and in good faith, provided that nothing in the Agreements shall be construed to protect the Manager against any liability to such Trusts or their shareholders by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties, or by reason of its reckless disregard of its obligations and duties under such Agreements. Portfolio Transactions. Portfolio decisions are based upon the recommendations and judgment of the Manager subject to the overall authority of the Board of Trustees. As most purchases made by the Trust are principal transactions at net prices, the Trust incurs little or no brokerage costs. Purchases of portfolio securities from underwriters include a commission or concession paid by the issuer to the underwriter, and purchases from dealers include a spread between the bid and asked prices. The Trust's policy of investing in short-term debt securities with maturities of less than one year results in high portfolio turnover. However, since brokerage commissions, if any, are small and securities are usually held to maturity, high turnover does not have an appreciable adverse effect upon the net asset value or income of the Trust in periods of stable or declining rates, and may have a positive effect in periods of rising interest rates. The Trust seeks to obtain prompt and reliable execution of orders at the most favorable net price. If brokers are used for portfolio transactions, transactions are directed to brokers furnishing execution and research services. The research services provided by a particular broker may be useful only to one or more of the advisory accounts of the Manager and its affiliates, and investment research received for the commissions of those other accounts may be useful both to the Trust and one or more of such other accounts. Such research, which may be supplied by a third party at the instance of a broker, includes information and analyses on particular companies and industries as A-11 well as market or economic trends and portfolio strategy, receipt of market quotations for portfolio evaluations, information systems, computer hardware and similar products and services. If a research service also assists the Manager in a non-research capacity (such as bookkeeping or other administrative functions), then only the percentage or component that provides assistance to the Manager in the investment decision-making process may be paid for in commission dollars. The research services provided by brokers broaden the scope and supplement the research activities of the Manager to make available additional views for consideration and comparisons, and to enable the Manager to obtain market information for the valuation of securities held in the Trust's portfolio or being considered for purchase. In the rare instances where the Trust pays commissions for research, the Board of Trustees, including the independent Trustees of the Trust, will review information furnished by the Manager as to the commissions paid to brokers furnishing such services in an effort to ascertain that the amount of such commissions was reasonably related to the value or the benefit of such services. The Trust does not direct the handling of purchases or sales of portfolio securities, whether on a principal or agency basis, to brokers for selling shares of the Trust. No portfolio transactions are handled by brokers which are affiliated with the Trust or the Manager if that broker is acting as principal. Service Plan Each Trust has adopted a Service Plan (the "Plan") under Rule 12b-1 of the Investment Company Act, pursuant to which the Trust will reimburse the Distributor for a portion of its costs incurred in connection with the services rendered to the Trust, as described in the Prospectus. Each Plan has been approved: (i) by a vote of the Board of Trustees of the Trust, including a majority of the "Independent Trustees" (those Trustees of the Trust who are not "interested persons," as defined in the Investment Company Act, and who have no direct or indirect financial interest in the operation of the Plan or in any agreements relating to the Plan) cast in person at a meeting called for the purpose of voting on the Plan; and (ii) by the vote of the holders of a "majority" (as defined under the Investment Company Act) of that Trust's outstanding voting securities. In approving each Plan, the Board determined that it is likely each Plan will benefit the shareholders of that Trust. The Distributor has entered into Supplemental Distribution Assistance Agreements ("Supplemental Agreements") under the Plan with selected dealers distributing shares of Centennial America Fund, L.P., Centennial California Tax Exempt Trust, Centennial Government Trust, Centennial New York Tax Exempt Trust and Oppenheimer Cash Reserves. Quarterly payments by the Distributor, which are not a Trust expense, for distribution-related services will range from 0.10% to 0.30%, annually, of the average net asset value of shares of these funds owned during the quarter beneficially or of record by the dealer or its customers. However, no payment shall be made to any dealer for any quarter during which the average net asset value of shares of such funds owned during that quarter by the dealer or its customers is less than $5 million. Payments made pursuant to Supplemental Agreements are not a fund expense, but are made by the Distributor out of its own resources or out of the resources of the Manager which may include profits derived from the advisory fee it receives from each such fund. No such supplemental payments will be paid to any dealer which is an "affiliate" (as defined in the Investment Company Act) of the Distributor. A-12 Each Plan, unless terminated as described below, shall continue in effect from year to year but only so long as such continuance is specifically approved at least annually by each Trust's Board of Trustees, including its Independent Trustees, by a vote cast in person at a meeting called for that purpose. The Supplemental Agreements are subject to the same renewal requirement. A Plan and the Supplemental Agreements may be terminated at any time by the vote of a majority of the Trust's Independent Trustees or by the vote of the holders of a "majority" (as defined in the Investment Company Act) of the Trust's outstanding voting securities. The Supplemental Agreements will automatically terminate in the event of their "assignment" (as defined in the Investment Company Act), and each may be terminated by the Distributor: (i) in the event a Trust amends its Plan, or (ii) if the net asset value of shares of the funds covered by the Supplemental Agreements held by the dealer or its customers is less than $5 million for two or more consecutive quarters. A dealer may terminate a Supplemental Agreement at any time upon giving 30 days' notice. Each Plan may not be amended to increase materially the amount of payments to be made unless such amendment is approved by the shareholders of that Trust. All material amendments must be approved by the Independent Trustees. Under each Plan, no payment will be made to any Recipient in any quarter if the aggregate net asset value of all Trust shares held by the Recipient for itself and its customers did not exceed a minimum amount, if any, that may be determined from time to time by a majority of the Trust's Independent Trustees. The Board of Trustees has set the fee at the maximum rate and set no minimum amount. The Plans permit the Distributor and the Manager to make additional distribution payments to Recipients from their own resources (including profits from advisory fees) at no cost to a Trust. The Distributor and the Manager may, in their sole discretion, increase or decrease the amount of distribution assistance payments they make to Recipients from their own assets. Each Recipient who is to receive distribution payments for any month or quarter is required to certify in writing that the aggregate payments to be received from the applicable Trust during that month or quarter do not exceed the Recipient's administrative and sales related costs in rendering distribution assistance during the month or quarter, and will reimburse the Trust for any excess. For each Trust's fiscal year ended June 30, 1996, payments to the Distributor under its Plan totaled $12,171,435, $2,929,180 and $1,929,551 for Money Market Trust, Tax Exempt Trust and Government Trust, respectively, of which $12,170,702, $2,876,667 and $1,868,803 was paid by Money Market Trust, Tax Exempt Trust and Government Trust, respectively, to an affiliate of the Distributor, as a Recipient. Payments received by the Distributor under the Plans will not be used to pay any interest expense, carrying charge, or other financial costs, or allocation of overhead by the Distributor. Any unreimbursed expenses incurred for any fiscal quarter by the Distributor may not be recovered under that Plan in subsequent fiscal quarters. While the Plan is in effect, the Treasurer of each Trust shall provide a report to the Board of Trustees in writing at least quarterly on the amount of all payments made pursuant to the Plan, the identity of each Recipient that received any such payment, and the purposes for which the payments were made. The Plan further provides that while it is in effect, the election and nomination of those Trustees of a Trust who are not "interested persons" of the Trust is committed to the discretion of the Independent Trustees. This does not prevent the involvement of others in such selection and A-13 nomination if the final decision on any such selection or nomination is approved by a majority of the Independent Trustees. Purchase, Redemption and Pricing of Shares Determination of Net Asset Value Per Share. The net asset value of each Trust's shares is determined twice each day as of 12:00 Noon and the close of The New York Stock Exchange (the "Exchange") which is normally 4:00 P.M., but may be earlier on some days, each day the Exchange is open (a "regular business day") (all references to time mean New York time) by dividing that Trust's net assets (the total value of the Trust's portfolio securities, cash and other assets less all liabilities) by the total number of shares outstanding. The Exchange's most recent annual holiday schedule states that it will close New Year's Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The Exchange may also close on other days. Dealers other than Exchange members may conduct trading in Municipal Securities on certain days on which the Exchange is closed (e.g., Good Friday), so that securities of the same type held by Tax Exempt Trust may be traded, and its net asset value per share may be affected significantly, on such days when shareholders may not purchase or redeem shares. Each Trust's Board of Trustees has established procedures for the valuation of the Trust's securities, generally as follows: (i) long-term debt securities having a remaining maturity in excess of 60 days are valued based on the mean between the "bid" and "ask" prices determined by a portfolio pricing service approved by the Trust's Board of Trustees or obtained by the Manager from two active market makers in the security on the basis of reasonable inquiry; (ii) debt instruments having a maturity of more than 397 days when issued, and non-money market type instruments having a maturity of 397 days or less when issued, which have a remaining maturity of 60 days or less are valued at the mean between the "bid" and "ask" prices determined by a pricing service approved by the Trust's Board of Trustees or obtained by the Manager from two active market makers in the security on the basis of reasonable inquiry; (iii) money market debt securities that had a maturity of less than 397 days when issued that have a remaining maturity of 60 days or less are valued at cost, adjusted for amortization of premiums and accretion of discounts; and (iv) securities (including restricted securities) not having readily-available market quotations are valued at fair value determined under the Board's procedures. If the Manager is unable to locate two market makers willing to give quotes (see (i) and (ii) above), the security may be priced at the mean between the "bid" and "ask" prices provided by a single active market maker (which in certain cases may be the "bid" price if no "ask" price is available). In the case of Municipal Securities, when last sale information is not generally available, such pricing procedures may include "matrix" comparisons to the prices for comparable instruments on the basis of quality, yield, maturity, and other special factors involved (such as the tax-exempt status of the interest paid by Municipal Securities). The Manager may use pricing services approved by the Board of Trustees to price any of the types of securities described above. The Manager will monitor the accuracy of such pricing services, which may include comparing prices used for portfolio evaluation to actual sales prices of selected securities. In the case of U.S. Government Securities and mortgage-backed securities, where last sale A-14 information is not generally available, such pricing procedures may include "matrix" comparisons to the prices for comparable instruments on the basis of quality, yield, maturity and other special factors involved. The Manager may use pricing services approved by the Board of Trustees to price U.S. Government Securities for which last sale information is not generally available. The Manager will monitor the accuracy of such pricing services, which may include comparing prices used for portfolio evaluation to actual sales prices of selected securities. Redemptions. Each Trust's Board of Trustees has the right, in conformity with the Trust's Declaration of Trust and applicable law, to cause the involuntary redemption of the shares held in any account if the aggregate net asset value of such shares is less than $500 or such lesser amount as the Board may decide. Should the Board elect to exercise this right, it will establish the terms of any notice of such redemption required to be provided to the shareholder under the Investment Company Act, including any provision the Board may establish to enable the shareholder to increase the amount of the investment to avoid involuntary redemption. Expedited Redemption Procedures. Under the Expedited Redemption Procedure available to shareholders of the Trusts, as discussed in the Appendix to the Prospectus, the wiring of redemption proceeds may be delayed if the Trust's Custodian bank is not open for business on a day that the Trust would normally authorize the wire to be made, which is usually the same day for redemptions prior to 12:00 Noon, and the Trust's next regular business day for redemptions between 12:00 Noon and the close of The New York Stock Exchange, which is normally 4:00 P.M., but may be earlier on some days. In those circumstances, the wire will not be transmitted until the next bank business day on which the Trust is open for business, and no dividends will be paid on the proceeds of redeemed shares waiting transfer by wire. Dividend Reinvestment in Another Fund. Direct shareholders of the Trusts may elect to reinvest all dividends and/or distributions in Class A shares of any of the other funds listed in the Prospectus as "Eligible Funds" at net asset value without sales charge. To elect this option, a shareholder must notify the Transfer Agent in writing, and either must have an existing account in the fund selected for reinvestment or must obtain a prospectus for that fund and an application from the Transfer Agent to establish an account. The investment will be made at the net asset value per share next determined on the payable date of the dividend or distribution. Exchange of Shares Eligible Funds. As stated in the Prospectus, shares of the Trust may, under certain circumstances, be exchanged by direct shareholders for Class A shares of the following Oppenheimer funds ("Eligible Funds"): Bond Fund Series-Oppenheimer Bond Fund for Growth Oppenheimer Asset Allocation Fund Oppenheimer California Municipal Fund Oppenheimer Champion Income Fund Oppenheimer Discovery Fund Oppenheimer Enterprise Fund A-15 Oppenheimer Equity Income Fund Oppenheimer Fund Oppenheimer Global Emerging Growth Fund Oppenheimer Global Fund Oppenheimer Global Growth & Income Fund Oppenheimer Gold & Special Minerals Fund Oppenheimer Growth Fund Oppenheimer High Yield Fund Oppenheimer Integrity Funds Oppenheimer International Bond Fund Oppenheimer International Growth Fund Oppenheimer Limited-Term Government Fund Oppenheimer Main Street Funds, Inc. Oppenheimer Multi-Sector Income Trust Oppenheimer Multi-State Municipal Trust Oppenheimer Municipal Bond Fund Oppenheimer Municipal Fund Oppenheimer New York Municipal Fund Oppenheimer Quest for Value Funds Oppenheimer Quest Global Value Fund, Inc. Oppenheimer Quest Value Fund, Inc. Oppenheimer Series Fund, Inc. Oppenheimer Strategic Income Fund Oppenheimer Strategic Income & Growth Fund Oppenheimer Target Fund Oppenheimer Total Return Fund, Inc. Oppenheimer U.S. Government Trust Oppenheimer World Bond Fund Rochester Fund Municipals* Rochester Portfolio Series - Limited Term New York Municipal Fund* The New York Tax Exempt Income Fund, Inc. the following "Money Market Funds": Centennial America Fund, L.P. Centennial California Tax Exempt Trust Centennial Government Trust Centennial Money Market Trust Centennial New York Tax Exempt Trust Centennial Tax Exempt Trust Daily Cash Accumulation Fund, Inc. Oppenheimer Cash Reserves Oppenheimer Money Market Fund, Inc. - ---------------------------------------------------- *Shares of the Trust are not presently exchangeable for shares of these funds. A-16 Yield Information Each Trust's current yield is calculated for a seven-day period of time, in accordance with regulations adopted under the Investment Company Act, as follows: First, a base period return is calculated for the seven-day period by determining the net change in the value of a hypothetical pre-existing account having one share at the beginning of the seven-day period. The change includes dividends declared on the original share and dividends declared on any shares purchased with dividends on that share, but such dividends are adjusted to exclude any realized or unrealized capital gains or losses affecting the dividends declared. Next, the base period return is multiplied by 365/7 to obtain the current yield to the nearest hundredth of one percent. The compounded effective yield for a seven-day period is calculated by (a) adding 1 to the base period return (obtained as described above), (b) raising the sum to a power equal to 365 divided by 7 and (c) subtracting 1 from the result. For the seven day period ended June 30, 1996, the "current yield" for each Money Market Trust, Tax Exempt Trust and Government Trust was 4.74%, 2.89% and 4.58%, respectively. The seven-day compounded effective yield for that period was 4.85%, 2.93% and 4.69%, respectively. The yield as calculated above may vary for accounts less than approximately $100 in value due to the effect of rounding off each daily dividend to the nearest full cent. Since the calculation of yield under either procedure described above does not take into consideration any realized or unrealized gains or losses on each Trust's portfolio securities which may affect dividends, the return on dividends declared during a period may not be the same on an annualized basis as the yield for that period. Tax Exempt Trust's "tax equivalent yield" adjusts Tax Exempt Trust's current yield, as calculated above, by a stated Federal tax rate. The tax equivalent yield is computed by dividing the tax-exempt portion of the Trust's current yield by one minus a stated income tax rate and adding the result to the portion (if any) of the Trust's current yield that is not tax-exempt. The tax equivalent yield may be compounded as described above to provide a compounded effective tax equivalent yield. The tax equivalent yield may be used to compare the tax effects of income derived from the Trust with income from taxable investments at the tax rates stated. Exhibit D, which is applicable only to Tax Exempt Trust, includes a tax equivalent yield table, based on various effective tax brackets for individual taxpayers. Such tax brackets are determined by a taxpayer's Federal taxable income (the net amount subject to Federal income tax after deductions and exemptions). The tax equivalent yield table assumes that the investor is taxed at the highest bracket, regardless of whether a switch to non-taxable investments would cause a lower bracket to apply and that state income tax payments are fully deductible for income tax purposes. For taxpayers with income above certain levels, otherwise allowable itemized deductions are limited. The Tax Exempt Trust's tax equivalent yield for the seven-day period ended June 30, 1996 was 4.52%. Its tax-equivalent compounded effective yield for the same period was 4.58% for an investor in the highest Federal tax bracket. Yield information may be useful to investors in reviewing each Trust's performance. A Trust may make comparisons between its yield and that of other investments, by citing various indices such as The Bank Rate Monitor National Index (provided by Bank Rate Monitor TM), which measures the average rate paid on bank money market accounts, NOW accounts and certificates of A-17 deposit by the 100 largest banks and thrift institutions in the top ten metropolitan areas. However, a number of factors should be considered before using yield information as a basis for comparison with other investments. An investment in a Trust is not insured. Its yield is not guaranteed and normally will fluctuate on a daily basis. The yield for any given past period is not an indication or representation by the Trust of future yields or rates of return on its shares. Each Trust's yield is affected by portfolio quality, portfolio maturity, type of instruments held and operating expenses. When comparing a Trust's yield with that of other investments, investors should understand that certain other investment alternatives such as certificates of deposit, U.S. Government Securities, money market instruments or bank accounts may provide fixed yields or yields that may vary above a stated minimum, and also that bank accounts may be insured. Certain types of bank accounts may not pay interest when the balance falls below a specified level and may limit the number of withdrawals by check per month. In order to compare the Tax Exempt Trust's dividends to the rate of return on taxable investments, Federal income taxes on such investments should be considered. Additional Information Description of the Trusts. Each Trust's Declaration of Trust contains an express disclaimer of shareholder and Trustee liability for the Trust's obligations, and provides for indemnification and reimbursement of expenses out of its property for any shareholder held personally liable for its obligations. Each Declaration of Trust also provides that the Trust shall, upon request, assume a defense of any claim made against any shareholder for any act or obligation of the Trust and satisfy any judgment thereon. Thus, while Massachusetts law permits a shareholder of a trust (such as the Trust) to be held personally liable as a "partner" for the Trust's obligations under certain circumstances, the risk of a Trust shareholder incurring any financial loss on account of shareholder liability is highly unlikely and is limited to the relatively remote circumstance in which the Trust would be unable to meet its obligations described above. Any person doing business with the Trust, and any shareholder of the Trust, agrees under the Trust's Declaration of Trust to look solely to the assets of the Trust for satisfaction of any claim or demand which may arise out of any dealings with the Trust, and the Trustees shall have no personal liability to any such person, to the extent permitted by law. It is not contemplated that regular annual meetings of shareholders will be held. The Trust will hold meetings when required to do so by the Investment Company Act or other applicable law, or when a shareholder meeting is called by the Trustees. Shareholders have the right, upon the declaration in writing or vote of two-thirds of the outstanding shares of the Trust, to remove a Trustee. The Trustees will call a meeting of shareholders to vote on the removal of a Trustee upon the written request of the shareholders of 10% of its outstanding shares. In addition, if the Trustees receive a request from at least 10 shareholders (who have been shareholders for at least six months) holding in the aggregate shares of the Trust valued at $25,000 or more or holding 1% or more of the Trust's outstanding shares, whichever is less, that they wish to communicate with other shareholders to request a meeting to remove a Trustee, the Trustees will then either make the Trust's shareholder list available to the applicants or mail their communication to all other shareholders at the applicants' expense, or the Trustees may take such other action as set forth in Section 16(c) of the Investment Company Act. A-18 Tax Status of the Trust's Dividends and Distributions. The Federal tax treatment of the Trust's dividends and distributions to shareholders is explained in the Prospectus under the caption "Dividends, Distributions and Taxes." Under the Internal Revenue Code, the Trust must distribute by December 31 each year 98% of its taxable investment income earned from January 1 through December 31 of that year and 98% of its capital gains realized from the prior November 1 through October 31 of that year or else pay an excise tax on the amounts not distributed. While it is presently anticipated that the Trust's distributions will meet those requirements, the Trust's Board and the Manager might determine in a particular year that it is in the best interest of the Trust's shareholders not to distribute income or capital gains at the mandated levels and to pay the excise tax on the undistributed amounts. The Custodian and the Transfer Agent. The Custodian's responsibilities include safeguarding and controlling the Trusts' portfolio securities and handling the delivery of portfolio securities to and from the Trusts. The Manager has represented to the Trusts that its banking relationships with the Custodian have been and will continue to be unrelated to and unaffected by the relationships between the Trusts and the Custodian. It will be the practice of the Trusts to deal with the Custodian in a manner uninfluenced by any banking relationship the Custodian may have with the Manager or its affiliates. Shareholder Services, Inc., the Transfer Agent, is responsible for maintaining each Trust's shareholder registry and shareholder accounting records, and for shareholder servicing and administrative functions. General Distributor's Agreement. Under the General Distributor's Agreement between each Trust and the Distributor, the Distributor acts as each Trust's principal underwriter in the continuous public offering of its shares but is not obligated to sell a specific number of shares. Expenses normally attributable to sales (other than those paid under the General Distributor's Agreement and the Service Plan), including advertising and the cost of printing and mailing prospectuses other than those furnished to existing shareholders, are borne by the Distributor. Independent Auditors and Financial Statements. The independent auditors of the Trusts examine the Trusts' financial statements and perform other related audit services. They also act as auditors for the Manager and for OFI, the Manager's immediate parent, as well as for certain other funds advised by the Manager and OFI. A-19 INDEPENDENT AUDITORS' REPORT Centennial Money Market Trust The Board of Trustees and Shareholders of Centennial Money Market Trust: We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Centennial Money Market Trust as of June 30, 1996, the related statement of operations for the year then ended, the statements of changes in net assets for the years ended June 30, 1996 and 1995, and the financial highlights for the period July 1, 1991 to June 30, 1996. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at June 30, 1996 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of Centennial Money Market Trust at June 30, 1996, the results of its operations, the changes in its net assets, and the financial highlights for the respective stated periods, in conformity with generally accepted accounting principles. /s/ Deloitte & Touche LLP - -------------------------- DELOITTE & TOUCHE LLP Denver, Colorado July 22, 1996 STATEMENT OF INVESTMENTS June 30, 1996 Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ BANKERS' ACCEPTANCES - 0.4% Chase Manhattan Bank, N.A., 4.94%, 8/19/96 (Cost $24,831,903).............................................. $ 25,000,000 $ 24,831,903 ------------ CERTIFICATES OF DEPOSIT - 5.9% DOMESTIC CERTIFICATES OF DEPOSIT - 1.6% Bank of New York, 5.07%, 8/27/96 ............................ 15,000,000 15,000,000 LaSalle National Bank: 5%, 8/19/96 .............................................. 10,000,000 10,000,000 5%, 8/7/96 ............................................... 10,000,000 10,000,000 5.05%, 8/26/96 ........................................... 10,000,000 10,000,000 5.35%, 11/5/96 ........................................... 5,000,000 5,000,000 5.35%, 7/15/96 ........................................... 15,000,000 15,000,000 5.35%, 8/14/96 ........................................... 10,000,000 10,000,000 5.35%, 8/19/96 ........................................... 15,000,000 15,000,000 5.38%, 8/5/96 ............................................ 10,000,000 10,000,000 5.40%, 7/5/96 ............................................ 5,000,000 5,000,000 ------------ 105,000,000 ------------ EURODOLLAR CERTIFICATES OF DEPOSIT - 1.5% Abbey National PLC, 5.01%, 8/1/96 ........................... 15,000,000 15,000,379 Deutsche Bank: 5%, 8/12/96 .............................................. 20,000,000 19,999,385 5.10%, 8/23/96 ........................................... 19,000,000 19,000,273 Rabobank Nederland, 5.02%, 8/22/96 .......................... 20,000,000 19,999,155 Societe Generale, 5.10%, 7/26/96 ............................ 30,000,000 30,001,347 ------------ 104,000,539 ------------ YANKEE CERTIFICATES OF DEPOSIT - 2.8% ABN Amro Bank: 5.01%, 8/7/96 ............................................ 20,000,000 19,998,798 5.03%, 8/20/96 ........................................... 10,000,000 10,000,136 Deutsche Bank: 4.96%, 8/20/96 ........................................... 23,000,000 22,992,920 5.06%, 8/19/96 ........................................... 15,000,000 15,000,000 Dresdner Bank, 5.13%, 11/22/96 .............................. 20,000,000 19,964,757 Rabobank Nederland, 5.06%, 7/26/96 .......................... 20,000,000 20,000,097
3 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ YANKEE CERTIFICATES OF DEPOSIT - 2.8% (CONTINUED) Societe Generale: 5.05%, 8/23/96 ....................................................................... $ 15,000,000 $ 14,999,061 5.07%, 8/23/96 ....................................................................... 10,000,000 10,000,000 5.07%, 8/6/96 ........................................................................ 20,000,000 20,000,962 5.10%, 8/29/96 ....................................................................... 10,000,000 10,000,000 5.36%, 7/1/96 ........................................................................ 10,000,000 10,000,000 Swiss Bank Corp., 5.32%, 7/12/96 ........................................................ 15,000,000 15,000,000 ------------ 187,956,731 ------------ Total Certificates of Deposit (Cost $396,957,270) ....................................... 396,957,270 ------------ DIRECT BANK OBLIGATIONS - 12.7% ABN Amro Bank Canada, 5.31%, 8/7/96 ..................................................... 15,000,000 14,918,215 ABN Amro Bank North America Finance, Inc.: 4.89%, 8/6/96 ........................................................................ 15,000,000 14,926,650 4.90%, 7/8/96 ........................................................................ 30,000,000 29,971,417 4.93%, 8/5/96 ........................................................................ 10,000,000 9,952,069 5.10%, 7/24/96 ....................................................................... 12,350,000 12,309,760 5.35%, 11/12/96 ...................................................................... 15,000,000 14,701,403 Bank of Scotland Treasury Services PLC, 5.35%, 10/7/96 .................................. 40,000,000 39,417,444 Bank One, Cleveland, guaranteeing commercial paper of Capital One Funding Corp.: Series 1995F, 5.50%, 7/5/96(1)(2)(3) ................................................. 10,900,000 10,900,000 Series 1996C, 5.50%, 7/5/96(1)(2)(3) ................................................. 9,000,000 9,000,000 Barclays Bank PLC, guaranteeing commercial paper of: Banco Nacional de Mexico S.A., 5.36%, 10/7/96 ........................................ 15,000,000 14,781,133 Banco Nacional de Mexico S.A.-Series A, 4.96%, 7/17/96 ............................... 5,000,000 4,988,155 Banco Real S.A.-Grand Cayman Branch, 5.36%, 7/8/96 ................................... 19,250,000 19,231,434 Petroleo Brasileiro, S.A.-Petrobras, 4.96%, 8/5/96 ................................... 5,000,000 4,975,889 Petroleo Brasileiro, S.A.-Petrobras, 5.01%, 8/15/96 .................................. 15,000,000 14,906,062 Petroleo Brasileiro, S.A.-Petrobras, 5.18%, 7/19/96 .................................. 15,000,000 14,961,150 Petroleo Brasileiro, S.A.-Petrobras, 5.29%, 8/14/96 .................................. 10,000,000 9,935,344 Bayerische Vereinsbank AG, guaranteeing commercial paper of: Galicia Funding Corp.-Series B, 5.35%, 10/7/96(4) .................................... 12,000,000 11,825,233 COSCO (Cayman) Co., Ltd., 5.31%, 7/16/96 ................................................ 6,000,000 5,986,725 Credit Suisse, guaranteeing commercial paper of: Cemex, S.A. de C.V.-Series A, 5.30%, 8/21/96 ......................................... 15,000,000 14,887,375 Cemex, S.A. de C.V.-Series B, 5.32%, 7/22/96 ......................................... 10,000,000 9,968,967 Cemex, S.A. de C.V.-Series B, 5.35%, 7/10/96 ......................................... 18,000,000 17,975,925 Cemex, S.A. de C.V.-Series A, 5.31%, 7/25/96 ......................................... 10,000,000 9,964,600
4 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ DIRECT BANK OBLIGATIONS (CONTINUED) Cemex, S.A. de C.V.-Series A, 5.35%, 7/18/96 ... $ 10,000,000 $ 9,974,878 Daewoo International Corp., 5.05%, 8/29/96 ..... 10,000,000 9,917,236 Queensland Alumina Ltd., 5.30%, 7/26/96 ........ 15,000,000 14,944,792 Dresdner U.S. Finance, Inc.: 4.94%, 7/22/96 ................................. 11,650,000 11,616,429 5.03%, 8/26/96 ................................. 86,500,000 85,831,858 FCC National Bank: 5.36%, 12/27/96(1) ............................. 40,000,000 39,988,490 5.47%, 10/7/96 ................................. 10,000,000 10,000,000 First National Bank of Boston: 5.32%, 7/19/96 ................................. 15,000,000 15,000,000 5.35%, 7/3/96 .................................. 10,000,000 10,000,000 5.37%, 11/13/96(1) ............................. 7,000,000 6,998,947 5.53%, 9/16/96 ................................. 10,000,000 10,000,000 5.65%, 8/28/96(1) .............................. 15,000,000 15,000,000 5.88%, 10/30/96(1) ............................. 10,000,000 10,000,000 Huntington National Bank: 5.09%, 8/21/96 ................................. 10,000,000 10,000,000 5.33%, 7/10/96 ................................. 20,000,000 20,000,000 5.52%, 11/13/96(1) ............................. 15,000,000 15,000,000 5.33%, 8/29/96(1) .............................. 15,000,000 14,998,536 National Westminster Bank of Canada, 5.19%, 7/31/96 ........................................ 5,000,000 4,978,375 Societe Generale North America, Inc.: 4.89%, 8/8/96 .................................. 30,000,000 29,845,150 4.90%, 8/13/96 ................................. 30,000,000 29,824,417 4.92%, 8/23/96 ................................. 25,000,000 24,818,917 4.92%, 8/23/96 ................................. 10,000,000 9,927,567 4.95%, 8/21/96 ................................. 25,000,000 24,824,865 5.10%, 7/22/96 ................................. 10,000,000 9,970,250 Societe Generale, guaranteeing commercial paper of: Banco Nacional de Comercio Exterior, SNC: Series A, 5.17%, 7/15/96 ....................... 22,500,000 22,454,685 Series A, 5.20%, 7/10/96 ....................... 20,000,000 19,974,000 Series B, 5.20%, 7/11/96 ....................... 10,000,000 9,985,556 Series A, 5.20%, 7/16/96 ....................... 13,000,000 12,971,833 Series A, 5.37%, 10/7/96 ....................... 10,000,000 9,853,817 Nacionale Financiera, SNC: Series A, 5.30%, 8/28/96 ....................... 15,000,000 14,871,917 Series A, 5.35%, 8/27/96 ....................... 20,000,000 19,830,583 ------------ Total Direct Bank Obligations (Cost $863,888,048) .................................. 863,888,048 ------------
5 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ SHORT-TERM NOTES - 80.0% BANKS - 3.6% Barnett Banks, Inc., 5.36%, 7/1/96 ........... $ 84,000,000 $ 84,000,000 Chase Manhattan Bank, N.A., 5.36%, 10/4/96 ... 10,000,000 9,858,556 Chemical Banking Corp.: 4.90%, 7/15/96 ............................ 30,000,000 29,942,056 4.93%, 8/15/96 ............................ 10,000,000 9,938,375 CoreStates Capital Corp.: 5.40%, 10/25/96(1) ........................ 15,000,000 15,000,000 5.84%, 8/13/96(1) ......................... 15,000,000 15,000,000 Fleet Financial Group, Inc., 5.34%, 7/19/96 .. 25,000,000 24,933,250 J.P. Morgan Delaware, 5.02%, 9/6/96 .......... 7,900,000 7,826,192 NationsBank Corp.: 5.28%, 8/26/96 ............................ 10,000,000 9,917,867 5.31%, 7/31/96 ............................ 20,000,000 19,911,500 Societe Generale, 5.33%, 7/1/96 .............. 10,000,000 10,000,000 ------------ 236,327,796 ------------ BEVERAGES - 2.9% Coca-Cola Enterprises, Inc.: 5.30%, 7/9/96(4) .......................... 25,000,000 24,970,556 5.30%, 8/8/96(4) .......................... 35,000,000 34,803,772 5.30%, 9/4/96(4) .......................... 20,000,000 19,808,611 5.32%, 7/10/96(4) ......................... 10,500,000 10,486,035 5.32%, 7/3/96(4) .......................... 20,000,000 19,994,089 5.32%, 8/12/96(4) ......................... 15,000,000 14,906,900 5.35%, 8/5/96(4) .......................... 15,000,000 14,921,979 5.37%, 7/11/96(4) ......................... 45,000,000 44,932,917 5.40%, 7/12/96(4) ......................... 10,000,000 9,983,500 ------------ 194,808,359 ------------ BROADCASTING - 0.3% Walt Disney Co., 5.26%, 10/23/96 ............. 17,584,000 17,291,109 ------------
6 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ BROKER/DEALERS - 7.8% CS First Boston, Inc.: 5.10%, 7/12/96(4) ................... $ 10,000,000 $ 9,984,417 5.39%, 8/8/96 ....................... 30,000,000 29,829,317 5.41%, 7/31/96 ...................... 25,000,000 24,887,292 5.44%, 3/4/97(1)(2) ................. 20,000,000 20,000,000 5.55%, 1/21/97(1)(2) ................ 15,000,000 15,000,000 Dean Witter, Discover & Co.: 5.58%, 9/29/96(1) ................... 6,000,000 6,003,300 5.76%, 11/22/96(1) .................. 15,000,000 15,013,842 5.71%, 2/3/97(1) .................... 20,000,000 20,029,110 Merrill Lynch & Co., Inc.: 4.94%, 8/19/96 ...................... 25,000,000 24,831,903 4.95%, 8/28/96 ...................... 15,000,000 14,880,375 5.10%, 7/29/96 ...................... 16,000,000 15,936,533 5.21%, 7/3/96 ....................... 25,000,000 24,992,764 5.25%, 7/2/96 ....................... 15,000,000 14,997,812 5.31%, 7/17/96 ...................... 24,966,000 24,907,080 5.36%, 7/11/96 ...................... 48,000,000 47,928,367 5.36%, 7/8/96 ....................... 10,000,000 9,989,597 5.40%, 1/31/97(1) ................... 30,000,000 30,000,000 5.44%, 11/1/96(1) ................... 15,000,000 15,000,000 5.45%, 9/19/96(1) ................... 20,000,000 20,000,000 5.47%, 10/24/96(1) .................. 15,000,000 15,000,000 Morgan Stanley Group, Inc.: 4.91%, 9/20/96 ...................... 7,000,000 6,922,667 5.12%, 7/26/96 ...................... 25,000,000 24,911,111 5.21%, 7/15/96 ...................... 10,000,000 9,979,739 5.27%, 9/30/96(1) ................... 33,600,000 33,600,000 5.30%, 7/12/96 ...................... 15,000,000 14,975,708 5.62%, 7/1/96 ....................... 37,250,000 37,250,000 ------------ 526,850,934 ------------ BUILDING MATERIALS - 0.4% Compagnie de Saint Gobain: 4.98%, 8/29/96 ...................... 10,000,000 9,918,465 5.01%, 9/5/96 ....................... 5,000,000 4,954,075 Redland Finance, 5.35%, 7/12/96 ........ 12,000,000 11,980,383 ------------ 26,852,923 ------------
7 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ----------- ----------- CHEMICALS - 0.4% Monsanto Co., 4.93%, 8/9/96 ............ $25,000,000 $24,866,479 ----------- COMMERCIAL FINANCE - 16.8% CIT Group Holdings, Inc.: 5.30%, 7/31/96 ...................... 33,330,000 33,182,792 5.31%, 9/26/96(1) ................... 25,000,000 24,995,757 5.32%, 8/2/96 ....................... 15,000,000 14,929,067 5.35%, 5/1/97(1) .................... 35,000,000 34,966,696 5.35%, 6/11/97(1) ................... 15,000,000 14,983,164 5.55%, 11/18/96(1) .................. 20,000,000 19,992,391 6.02%, 7/10/96(1)(3) ................ 11,000,000 11,000,000 Countrywide Home Loan: 5.32%, 7/24/96 ...................... 50,000,000 49,830,056 5.32%, 7/25/96 ...................... 29,000,000 28,896,120 5.32%, 8/12/96 ...................... 20,000,000 19,875,867 5.32%, 8/23/96 ...................... 10,000,000 9,921,678 5.35%, 7/17/96 ...................... 30,000,000 29,928,667 5.35%, 7/3/96 ....................... 47,000,000 46,986,031 5.36%, 7/22/96 ...................... 30,000,000 29,906,200 5.38%, 7/12/96 ...................... 25,000,000 24,958,750 5.38%, 7/8/96 ....................... 45,000,000 44,952,828 5.40%, 7/11/96 ...................... 25,000,000 24,962,361 5.42%, 8/9/96 ....................... 20,000,000 19,882,567 FINOVA Capital Corp.: 4.97%, 8/30/96 ...................... 10,000,000 9,917,167 5.36%, 8/5/96 ....................... 15,000,000 14,921,833 5.37%, 8/14/96 ...................... 37,500,000 37,253,417 5.38%, 7/25/96 ...................... 15,000,000 14,946,200 5.39%, 9/5/96 ....................... 15,000,000 14,851,775 5.40%, 2/21/97(1) ................... 35,000,000 35,000,000 5.40%, 7/10/96 ...................... 30,000,000 29,959,387 5.40%, 7/19/96 ...................... 10,000,000 9,973,000 5.40%, 7/22/96 ...................... 20,000,000 19,937,000 5.40%, 7/30/96 ...................... 15,000,000 14,934,992 5.41%, 8/16/96 ...................... 36,000,000 35,751,217 5.42%, 7/26/96 ...................... 8,000,000 7,969,889 5.43%, 7/15/96 ...................... 25,000,000 24,947,208
8 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 -------------- -------------- COMMERCIAL FINANCE (CONTINUED) 5.45%, 7/18/96 ................................................................. $ 20,000,000 $ 19,948,528 5.45%, 7/9/96 .................................................................. 10,000,000 9,987,889 5.45%, 9/3/96 .................................................................. 23,000,000 22,779,200 5.49%, 8/9/96 .................................................................. 5,000,000 4,970,235 5.52%, 8/26/96 ................................................................. 3,000,000 2,974,240 Fleet Mortgage Group, Inc., 5.55%, 11/20/96(1) .................................... 10,000,000 9,997,104 Heller Financial, Inc.: 5.38%, 7/26/96 ................................................................. 20,000,000 19,925,278 5.39%, 7/15/96 ................................................................. 10,000,000 9,979,039 5.40%, 7/25/96 ................................................................. 20,000,000 19,928,000 5.41%, 7/11/96 ................................................................. 50,000,000 49,924,778 5.42%, 9/30/96(1) .............................................................. 10,000,000 10,000,315 5.47%, 10/4/96(1) .............................................................. 27,000,000 26,995,883 5.47%, 10/7/96(1) .............................................................. 20,000,000 19,999,546 5.48%, 8/15/96 ................................................................. 5,000,000 4,965,750 5.50%, 10/7/96(1) .............................................................. 10,000,000 9,998,317 5.50%, 10/7/96(1) .............................................................. 12,000,000 12,000,000 5.50%, 3/31/97(1) .............................................................. 7,500,000 7,510,443 5.51%, 8/28/96(1) .............................................................. 20,000,000 20,000,000 5.55%, 6/2/97(1) ............................................................... 20,000,000 19,994,267 5.66%, 1/15/97(1) .............................................................. 10,000,000 10,007,331 5.67%, 3/28/97(1) .............................................................. 30,000,000 30,006,770 5.70%, 12/1/96(1) .............................................................. 20,970,000 20,981,858 5.98%, 10/1/96(1) .............................................................. 20,000,000 20,000,000 -------------- 1,137,388,848 -------------- COMPUTER SOFTWARE - 0.8% First Data Corp.: 5.37%, 7/15/96 ................................................................. 20,000,000 19,958,233 5.38%, 7/2/96 .................................................................. 13,000,000 12,998,057 5.38%, 9/3/96 .................................................................. 20,000,000 19,808,711 -------------- 52,765,001 -------------- CONGLOMERATES - 0.5% Mitsubishi International Corp.: 5.23%, 7/5/96 .................................................................. 5,000,000 4,997,094 5.37%, 9/30/96 ................................................................. 6,301,000 6,215,549 Pacific Dunlop Holdings, Inc., guaranteed by Pacific Dunlop Ltd., 5.66%, 1/17/97(1) ..................................................................... 20,000,000 20,010,556 -------------- 31,223,199 --------------
9 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ CONSUMER FINANCE - 3.0% American Express Credit Corp.: 4.92%, 8/23/96 ................................ $ 15,000,000 $ 14,891,350 5.10%, 7/19/96 ................................ 20,000,000 19,949,000 5.22%, 7/3/96 ................................. 15,000,000 14,995,550 5.22%, 7/8/96 ................................. 18,000,000 17,981,275 5.30%, 10/28/96 ............................... 10,000,000 9,824,806 Commercial Credit Co., 8%, 9/1/96 ................ 5,000,000 5,019,167 Island Finance Puerto Rico, Inc.: 5.31%, 7/10/96 ................................ 20,000,000 19,973,450 5.31%, 7/8/96 ................................. 15,000,000 14,984,512 5.40%, 8/12/96 ................................ 20,300,000 20,172,110 5.45%, 8/2/96 ................................. 5,500,000 5,473,356 Sears Roebuck Acceptance Corp.: 5.10%, 7/1/96 ................................. 40,000,000 40,000,000 5.36%, 7/10/96 ................................ 16,800,000 16,777,488 ------------ 200,042,064 ------------ DIVERSIFIED FINANCIAL - 7.1% Associates Corp. of North America, 5.60%, 7/1/96 ........................................ 10,000,000 10,000,000 Ford Motor Credit Co.: 5.31%, 7/12/96 ................................ 10,000,000 9,983,775 5.31%, 7/2/96 ................................. 10,000,000 9,998,525 5.35%, 10/3/96 ................................ 20,000,000 19,720,611 5.36%, 10/7/96 ................................ 15,000,000 14,781,133 8.88%, 8/1/96 ................................. 5,500,000 5,516,613 General Electric Capital Corp.: 4.92%, 8/22/96 ................................ 35,000,000 34,751,267 4.94%, 8/19/96 ................................ 10,000,000 9,932,761 4.94%, 8/21/96 ................................ 12,000,000 11,916,020 5.15%, 7/15/96 ................................ 20,000,000 19,959,944 5.24%, 7/2/96 ................................. 10,000,000 9,998,544 5.36%, 10/4/96 ................................ 30,000,000 29,575,667 5.39%, 8/6/96 ................................. 12,600,000 12,532,086 General Electric Capital Services, 5.28%, 10/28/96 ...................................... 20,000,000 19,650,933
10 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ DIVERSIFIED FINANCIAL (CONTINUED) General Motors Acceptance Corp.: 5.33%, 7/12/96 .................................................... $ 40,000,000 $ 39,934,856 5.39%, 10/2/96 .................................................... 15,000,000 14,791,137 5.39%, 7/2/96 ..................................................... 25,000,000 24,996,257 5.40%, 7/5/96 ..................................................... 25,000,000 24,985,000 5.42%, 11/8/96 .................................................... 10,000,000 9,804,278 5.42%, 8/19/96 .................................................... 8,000,000 7,940,982 5.43%, 8/12/96 .................................................... 9,500,000 9,439,817 5.64%, 7/1/96 ..................................................... 40,000,000 40,000,000 5.66%, 8/19/96(1) ................................................. 30,000,000 29,999,789 5.67%, 7/19/96(1) ................................................. 23,300,000 23,299,998 8.25%, 8/1/96 ..................................................... 8,400,000 8,419,869 8.63%, 7/15/96 .................................................... 10,000,000 10,011,847 Household Finance Corp., 5.28%, 8/19/96 .............................. 10,000,000 9,928,133 Prudential Funding Corp., 5.06%, 7/8/96 .............................. 10,000,000 9,990,161 ------------ 481,860,003 ------------ DRUG WHOLESALERS - 1.1% Glaxo Wellcome PLC: 5.28%, 8/16/96(4) ................................................. 8,000,000 7,946,027 5.28%, 8/22/96(4) ................................................. 14,000,000 13,893,227 5.29%, 7/26/96(4) ................................................. 40,000,000 39,852,892 5.30%, 7/12/96(4) ................................................. 5,000,000 4,991,903 5.35%, 7/8/96(4) .................................................. 9,200,000 9,190,429 ------------ 75,874,478 ------------ ELECTRIC UTILITIES - 0.4% Vattenfall Treasury, Inc. guaranteed by Vattenfall AB, 5.35%, 10/16/96............................................................. 30,000,000 29,522,958 ------------- ELECTRICAL EQUIPMENT - 0.4% Xerox Corp.: 4.93%, 8/19/96 .................................................... 10,000,000 9,932,897 5.30%, 7/26/96 .................................................... 15,000,000 14,944,792 ------------ 24,877,689 ------------
11 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------ ---------- ELECTRONICS-1.8% Avnet, Inc., 5.30%, 7/18/96 ................... $ 10,000,000 $ 9,974,972 ITT Industries, Inc.: 5.31%, 7/12/96(4) .......................... 20,000,000 19,967,306 5.35%, 7/22/96(4) .......................... 10,000,000 9,968,792 5.40%, 7/8/96(4) ........................... 7,000,000 6,992,650 Mitsubishi Electric Finance America, Inc.: 5.12%, 7/24/96(4) .......................... 12,000,000 11,960,747 5.30%, 8/21/96(4) .......................... 10,000,000 9,924,917 5.35%, 7/31/96(4) .......................... 25,000,000 24,888,542 5.41%, 8/7/96(4) ........................... 8,000,000 7,955,518 Panasonic Finance, Inc.: 5.28%, 8/23/96(4) .......................... 11,277,000 11,189,340 5.28%, 8/8/96(4) ........................... 10,000,000 9,944,267 ------------ 122,767,051 ------------ ENERGY SERVICES & PRODUCERS-0.4% Union Pacific Resources Group, Inc.: 5.34%, 7/11/96(4) .......................... 10,000,000 9,985,167 5.35%, 7/9/96(4) ........................... 15,700,000 15,681,334 ------------ 25,666,501 ------------ ENVIRONMENTAL-1.9% WMX Technologies, Inc.: 4.90%, 11/15/96(4) ......................... 12,600,000 12,365,045 5.10%, 8/16/96(4) .......................... 20,000,000 19,869,667 5.21%, 7/11/96(4) .......................... 15,000,000 14,977,792 5.22%, 7/9/96(4) ........................... 20,000,000 19,976,311 5.32%, 9/10/96(4) .......................... 10,000,000 9,895,078 5.35%, 10/15/96(4) ......................... 15,000,000 14,763,708 5.35%, 7/18/96(4) .......................... 20,000,000 19,949,472 5.36%, 7/16/96(4) .......................... 8,700,000 8,680,715 5.38%, 8/12/96(4) .......................... 10,000,000 9,937,233 ------------ 130,415,021 ------------ HEALTHCARE/DRUGS-0.4% Sandoz Corp.: 5.28%, 7/25/96(4) .......................... 10,000,000 9,964,767 5.30%, 7/17/96 ............................. 20,000,000 19,952,889 ------------ 29,917,656 ------------
12 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ HEALTHCARE/SUPPLIES & SERVICES-1.7% A.H. Robins Co., Inc., guaranteed by American Home Products: 5.32%, 7/26/96(4) ....................................... $ 40,000,000 $ 39,851,181 5.42%, 8/21/96(4) ....................................... 15,000,000 14,884,825 American Home Products, 5.32%, 7/26/96(4) .................. 40,000,000 39,852,222 Sherwood Medical Co., guaranteed by American Home Products: 5.31%, 8/2/96(4) ........................................ 13,447,000 13,383,530 5.43%, 7/19/96(4) ....................................... 5,000,000 4,986,425 ------------ 112,958,183 ------------ INDUSTRIAL SERVICES-0.4% Atlas Copco AB: 5.02%, 9/3/96(4) ........................................ 8,000,000 7,928,604 5.32%, 10/30/96(4) ...................................... 5,000,000 4,910,594 PHH Corp., 5.45%, 3/26/97(1) ............................... 15,000,000 14,993,554 ------------ 27,832,752 ------------ INSURANCE-5.1% Allstate Life Insurance Co., 5.44%, 7/1/96(1)(2)(3) ........ 40,000,000 40,000,000 General American Life Insurance Co., 6%, 7/1/96(1)(2)(3) ... 50,000,000 50,000,000 Jackson National Life, 5.46%, 7/1/96(1)(2)(3) .............. 40,000,000 40,000,000 Pacific Mutual Life Insurance Co., 5.57%, 2/14/97(1)(2)(3) . 25,000,000 25,000,000 Protective Life Insurance Co., 5.59%, 7/1/96(1)(2)(3) ...... 10,000,000 10,000,000 TransAmerica Life Insurance & Annuity Co.: 5.44%, 10/15/96(1)(2)(3) ................................ 50,000,000 50,000,000 5.44%, 9/27/96(1)(2)(3) ................................. 25,000,000 25,000,000 5.44%, 9/30/96(1)(2)(3) ................................. 30,000,000 30,000,000 5.52%, 8/1/96(1)(2)(3) .................................. 43,000,000 43,000,000 5.52%, 7/10/96(1)(2)(3) ................................. 30,000,000 30,000,000 ------------ 343,000,000 ------------ LEASING & FACTORING-3.6% CSW Credit, Inc.: 5.30%, 7/19/96 .......................................... 17,300,000 17,254,155 5.31%, 7/8/96 ........................................... 15,100,000 15,084,409 5.42%, 8/12/96 .......................................... 20,200,000 20,072,269
13 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 -------- --------- LEASING & FACTORING-3.6% (CONTINUED) International Lease Finance Corp.: 5.27%, 8/2/96 ............................................... $ 25,000,000 $ 24,882,889 5.28%, 8/13/96 .............................................. 20,000,000 19,873,867 5.28%, 8/15/96 .............................................. 33,750,000 33,527,250 5.30%, 7/8/96 ............................................... 35,000,000 34,963,931 5.35%, 7/12/96 .............................................. 30,600,000 30,550,351 The Hertz Corp.: 5.20%, 7/12/96 .............................................. 15,000,000 14,976,167 5.31%, 7/17/96 .............................................. 30,000,000 29,929,200 ------------ 241,114,488 ------------ MANUFACTURING-0.5% Rexam PLC: 5.30%, 7/24/96(4) ........................................... 23,115,000 23,036,730 5.35%, 7/1/96(4) ............................................ 10,000,000 10,000,000 ------------ 33,036,730 ------------ METALS/MINING-0.6% English China Clays PLC, 5.30%, 7/8/96(4) ...................... 15,700,000 15,683,804 RTZ America, Inc., guaranteed by RTC Corp. PLC, 5.35%, 7/8/96(4) ................................................... 27,000,000 26,971,912 ------------ 42,655,716 ------------ NONDURABLE HOUSEHOLD GOODS-0.5% Colgate-Palmolive Co., 5.20%, 9/23/96(4) ....................... 35,000,000 34,575,508 ------------ SAVINGS & LOANS-1.5% Great Western Bank FSB, 5.32%, 7/12/96 ......................... 25,000,000 24,959,361 Household Bank FSB: 5.35%, 8/15/96 .............................................. 25,000,000 24,999,691 5.39%, 8/7/96 ............................................... 10,000,000 10,000,000 5.39%, 9/27/96(1) ........................................... 45,000,000 44,997,169 ------------ 104,956,221 ------------ SPECIAL PURPOSE FINANCIAL-13.5% Asset-Securitization Cooperative: 5.28%, 7/12/96(4) ........................................... 15,000,000 14,975,800 5.30%, 7/18/96(4) ........................................... 25,000,000 24,937,431 5.30%, 7/23/96(4) ........................................... 20,000,000 19,935,222 5.31%, 7/17/96(4) ........................................... 15,000,000 14,964,600 5.31%, 7/31/96(4) ........................................... 8,665,000 8,626,657 5.41%, 8/19/96(4) ........................................... 25,000,000 24,815,910
14 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 -------- --------- SPECIAL PURPOSE FINANCIAL-13.5% CIESCO L.P.: 5.35%, 7/11/96 ................................................... $10,000,000 $ 9,985,139 5.42%, 5/19/97(1)(4) ............................................. 17,000,000 16,997,422 Cooperative Association of Tractor Dealers, Inc.: 5%, 8/22/96 ...................................................... 6,300,000 6,250,405 5.08%, 7/2/96 .................................................... 12,000,000 11,998,248 5.17%, 7/15/96 ................................................... 7,000,000 6,985,926 Corporate Asset Funding Co., Inc.: 5%, 9/3/96 ....................................................... 10,100,000 10,010,222 5.27%, 9/12/96 ................................................... 25,000,000 24,732,840 CXC, Inc.: 5.32%, 8/5/96(4) ................................................. 30,000,000 29,844,833 5.32%, 9/13/96(4) ................................................ 25,000,000 24,726,611 5.35%, 7/1/96(4) ................................................. 25,000,000 25,000,000 5.35%, 7/11/96(4) ................................................ 6,300,000 6,290,637 5.39%, 8/20/96(4) ................................................ 25,000,000 24,812,847 5.40%, 8/22/96(4) ................................................ 44,000,000 43,656,800 Falcon Asset Securitization Corp.: 5.31%, 8/7/96(4) ................................................. 15,100,000 15,017,592 5.35%, 7/10/96(4) ................................................ 9,200,000 9,187,695 5.41%, 7/25/96(4) ................................................ 12,860,000 12,813,618 First Deposit Master Trust 1993-3: 5.10%, 8/8/96(4) ................................................. 5,000,000 4,973,083 5.33%, 7/25/96(4) ................................................ 5,000,000 4,982,233 5.42%, 8/12/96(4) ................................................ 15,400,000 15,302,621 Fleet Funding Corp.: 5.35%, 7/8/96(4) ................................................. 19,900,000 19,879,298 5.37%, 7/12/96(4) ................................................ 21,268,000 21,233,103 New Center Asset Trust: 5.29%, 8/5/96 .................................................... 15,000,000 14,922,854 5.36%, 7/12/96 ................................................... 20,000,000 19,967,244 5.37%, 9/12/96 ................................................... 25,000,000 24,727,771 Sheffield Receivables Corp.: 5.28%, 7/1/96 .................................................... 27,685,000 27,685,000 5.35%, 7/11/96(4) ................................................ 19,200,000 19,171,467 5.35%, 7/8/96 .................................................... 39,360,000 39,318,936 Short-Term Card Account Trust 1995-1, Class A1, 5.51%, 1/15/97(1)(2) .................................................... 25,000,000 25,000,000
15 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 -------- ---------- SPECIAL PURPOSE FINANCIAL (CONTINUED) SMM Trust: 1995-I, 5.48%, 5/29/97(1)(2) ........................................ $ 35,000,000 $ 35,000,000 1995-B, 5.49%, 8/2/96(1)(2) ......................................... 20,000,000 20,000,000 1995-B, 5.91%, 11/15/96(1)(2) ....................................... 10,000,000 10,000,000 1996-V, 5.62%, 3/26/97(1)(2) ........................................ 20,000,000 20,000,000 Structured Enhanced Return Trust 1993 Series A-02, 5.54%, 11/18/96(1)(2) ...................................................... 10,000,000 10,000,000 WCP Funding: 5.30%, 7/25/96(4) ................................................... 30,000,000 29,894,000 5.30%, 7/26/96(4) ................................................... 20,000,000 19,926,389 5.31%, 7/12/96(4) ................................................... 25,000,000 24,959,437 5.34%, 7/2/96(4) .................................................... 25,000,000 24,996,292 5.35%, 7/10/96(4) ................................................... 20,000,000 19,973,250 5.35%, 7/11/96(4) ................................................... 12,000,000 11,982,167 5.40%, 8/21/96(4) ................................................... 50,000,000 49,617,500 5.42%, 8/16/96(4) ................................................... 15,000,000 14,896,117 -------------- 914,975,217 -------------- SPECIALTY RETAILING-0.5% St. Michael Finance Ltd., guaranteed by Marks & Spencer PLC: 5.03%, 8/29/96 ...................................................... 10,000,000 9,918,056 5.28%, 8/20/96 ...................................................... 15,000,000 14,890,000 5.31%, 8/28/96 ...................................................... 6,739,000 6,681,348 -------------- 31,489,404 -------------- TELECOMMUNICATIONS-TECHNOLOGY-1.0% NYNEX Corp.: 5.33%, 7/12/96 ...................................................... 26,600,000 26,556,679 5.33%, 8/14/96 ...................................................... 15,000,000 14,902,283 5.35%, 7/29/96 ...................................................... 15,000,000 14,937,583 5.38%, 8/5/96 ....................................................... 10,000,000 9,947,694 -------------- 66,344,239 -------------- TELEPHONE UTILITIES-1.1% GTE Corp.: 5.37%, 7/18/96 ...................................................... 6,400,000 6,383,771 5.37%, 7/8/96 ....................................................... 31,890,000 31,856,701 5.40%, 7/10/96 ...................................................... 37,000,000 36,950,050 -------------- 75,190,522 -------------- Total Short-Term Notes (Cost $5,397,447,049) ........................... 5,397,447,049 --------------
16 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 -------- ---------- U.S. GOVERNMENT OBLIGATIONS-0.3% U.S. Treasury Bills, 4.87%, 8/15/96 (Cost $19,878,375) .......................... $ 20,000,000 $ 19,878,375 --------------- FOREIGN GOVERNMENT OBLIGATIONS-1.3% Bayerische Landesbank Girozentrale: 5.06%, 8/27/96 ............................................................... 25,000,000 25,000,000 5.07%, 8/21/96 ............................................................... 25,000,000 25,000,346 Finnish Export Credit, Ltd., supported by the Republic of Finland, 5.08%, 7/26/96 ...................................................................... 15,000,000 14,947,083 Unibanco-Uniao de Brancos Brasileiros SA-Grand Cayman, guaranteed by Westdeutsche Landesbank Girozentrale, 5.37%, 7/5/96 ............ 25,000,000 24,985,083 --------------- Total Foreign Government Obligations (Cost $89,932,512) ......................... 89,932,512 --------------- Total Investments, at Value ..................................................... 100.6% 6,792,935,157 --------------- --------------- Liabilities in Excess of Other Assets ........................................... (0.6) (40,051,124) --------------- --------------- Net Assets ...................................................................... 100.0% $ 6,752,884,033 ================ ================
Short-term notes, bankers' acceptances, and direct bank obligations are generally traded on a discount basis; the interest rate is the discount rate received by the Trust at the time of purchase. Other securities normally bear interest at the rates shown. 1. Floating or variable rate obligation maturing in more than one year. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on June 30, 1996. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice. Maturity date shown represents effective maturity based on variable rate and, if applicable, demand feature. 2. Restricted securities amount to $517,900,000, or 7.67% of the Trust's net assets, at June 30, 1996. In addition to being restricted, the security may be considered illiquid by virtue of the absence of a readily available market or because of legal or contractual restrictions on resale. Illiquid securities amount to $190,000,000, or 2.81% of the Trust's net assets, at June 30, 1996. The Trust may not invest more than 10% of its net assets (determined at the time of purchase) in illiquid securities. 3. Put obligation redeemable at full face value on the date reported. 4. Security issued in an exempt transaction without registration under the Securities Act of 1933 (the Act). The securities are carried at amortized cost, and amount to $1,405,786,822, or 20.82% of the Trust's net assets. See accompanying Notes to Financial Statements. 17 STATEMENT OF ASSETS AND LIABILITIES June 30, 1996 Centennial Money Market Trust ASSETS: Investments, at value-see accompanying statement ............. $6,792,935,157 Cash ......................................................... 208,823 Receivables: Shares of beneficial interest sold .......................... 27,411,186 Interest .................................................... 18,308,069 Securities sold ............................................. 6,800,000 Other ........................................................ 43,878 -------------- Total assets ............................................... 6,845,707,113 -------------- LIABILITIES: Payables and other liabilities: Shares of beneficial interest redeemed ...................... 81,487,588 Dividends ................................................... 8,884,619 Transfer and shareholder servicing agent fees ............... 721,994 Service plan fees ........................................... 377,260 Shareholder reports ......................................... 347,170 Trustees' fees .............................................. 3,120 Other ....................................................... 1,001,329 -------------- Total liabilities .......................................... 92,823,080 NET ASSETS ................................................... $6,752,884,033 ============== COMPOSITION OF NET ASSETS: Paid-in capital .............................................. $6,752,559,664 Accumulated net realized gain on investment transactions ..... 324,369 -------------- NET ASSETS-applicable to 6,752,559,664 shares of beneficial interest outstanding ...................................... $6,752,884,033 ============== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE ..................................................... $ 1.00
See accompanying Notes to Financial Statements. 18 STATEMENT OF OPERATIONS For the Year Ended June 30, 1996 Centennial Money Market Trust
INVESTMENT INCOME-Interest ........................... $345,130,867 ------------ EXPENSES: Management fees-Note 3 ............................... 21,572,513 Service plan fees-Note 3 ............................. 12,171,435 Transfer and shareholder servicing agent fees - Note 3 ............................................. 5,648,855 Registration and filing fees ......................... 1,002,403 Custodian fees and expenses .......................... 625,400 Shareholder reports .................................. 590,603 Trustees' fees and expenses .......................... 20,804 Other ................................................ 86,307 ------------ Total expenses ..................................... 41,718,320 ------------ NET INVESTMENT INCOME ................................ 303,412,547 NET REALIZED GAIN ON INVESTMENTS ..................... 265,465 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......................................... $303,678,012 ============
=============================================================================== STATEMENTS OF CHANGES IN NET ASSETS Centennial Money Market Trust
Year Ended June 30, 1996 1995 ---- ---- OPERATIONS: Net investment income ....................................... $ 303,412,547 $ 167,484,276 Net realized gain ........................................... 265,465 431,897 --------------- --------------- Net increase in net assets resulting from operations ........ 303,678,012 167,916,173 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS ................. (303,849,237) (167,484,999) BENEFICIAL INTEREST TRANSACTIONS Net increase in net assets resulting from beneficial interest transactions-Note 2 ...................................... 1,940,862,519 2,252,373,243 --------------- --------------- NET ASSETS: Total increase .............................................. 1,940,691,294 2,252,804,417 Beginning of period ......................................... 4,812,192,739 2,559,388,322 --------------- --------------- End of period ............................................... $ 6,752,884,033 $ 4,812,192,739 =============== ===============
See accompanying Notes to Financial Statements. 19 FINANCIAL HIGHLIGHTS Centennial Money Market Trust
Year Ended June 30, ------------------------------------------------------------------------------- 1996 1995 1994 1993 1992 ---- ---- ---- ---- ---- PER SHARE OPERATING DATA: Net asset value, beginning of period ................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from investment operations-net investment income and net realized gain .............. .05 .05 .03(1) .03(1) .04(1) Dividends and distributions to shareholders... (.05) (.05) (.03) (.03) (.04) --------- --------- --------- --------- --------- Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========= ========= ========= ========= ========= TOTAL RETURN, AT NET ASSET VALUE(2) ........................ 5.11% 5.21% 2.82% 2.91% 4.73% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in millions) ...... $ 6,753 $ 4,812 $ 2,559 $ 1,991 $ 1,270 Average net assets (in millions) ............. $ 6,077 $ 3,342 $ 2,346 $ 1,701 $ 821 RATIOS TO AVERAGE NET ASSETS: Net investment income ........................ 4.99% 5.01% 2.84% 2.82% 4.31% Expenses ..................................... 0.69% 0.73% 0.76%(1) 0.78%(1) 0.69%(1)
1. Net investment income would have been $.03, $.03 and $.04 per share absent the voluntary expense limitation, resulting in an expense ratio of 0.81%, 0.83%, and 0.81% for the years ended June 30, 1994, 1993 and 1992, respectively. 2. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods of less than one full year. Total returns reflect changes in net investment income only. See accompanying Notes to Financial Statements. 20 NOTES TO FINANCIAL STATEMENTS Centennial Money Market Trust 1. SIGNIFICANT ACCOUNTING POLICIES Centennial Money Market Trust (the Trust) is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Trust's investment objective is to seek the maximum current income that is consistent with low capital risk and the maintenance of liquidity. The Trust's investment advisor is Centennial Asset Management Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). The following is a summary of significant accounting policies consistently followed by the Trust. Investment Valuation-Portfolio securities are valued on the basis of amortized cost, which approximates market value. Federal Taxes-The Trust intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. Therefore, no federal income or excise tax provision is required. Distributions to Shareholders-The Trust intends to declare dividends from net investment income each day the New York Stock Exchange is open for business and pay such dividends monthly. To effect its policy of maintaining a net asset value of $1.00 per share, the Trust may withhold dividends or make distributions of net realized gains. Other-Investment transactions are accounted for on the date the investments are purchased or sold (trade date). Realized gains and losses on investments are determined on an identified cost basis, which is the same basis used for federal income tax purposes. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 21 NOTES TO FINANCIAL STATEMENTS (Continued) Centennial Money Market Trust 2. SHARES OF BENEFICIAL INTEREST The Trust has authorized an unlimited number of no par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
Year Ended June 30, 1996 Year Ended June 30, 1995 ---------------------------------------- ---------------------------------------- Shares Amount Shares Amount ------ ------ ------ ------ Sold ...................... 21,158,638,888 $ 21,158,638,888 14,974,552,413 $ 14,974,552,413 Dividends and distributions reinvested .............. 297,883,433 297,883,433 156,243,456 156,243,456 Redeemed .................. (19,515,659,802) (19,515,659,802) (12,878,422,626) (12,878,422,626) ---------------- ---------------- ---------------- ---------------- Net increase .............. 1,940,862,519 $ 1,940,862,519 2,252,373,243 $ 2,252,373,243 ================ ================ ================ ================
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust which provides for a fee of 0.50% on the first $250 million of average annual net assets with a reduction of 0.025% on each $250 million thereafter, to 0.40% on net assets in excess of $1 billion. The Manager has agreed to reimburse the Trust if aggregate expenses (with specified exceptions) exceed the lesser of 1.5% of the first $30 million of average annual net assets of the Trust, plus 1% of average annual net assets in excess of $30 million; or 25% of the total annual investment income of the Trust. Independent of the investment advisory agreement, the Manager has voluntarily agreed to waive a portion of the management fee otherwise payable to it by the Trust to the extent necessary to: (a) permit the Trust to have a seven-day yield equal to that of Daily Cash Accumulation Fund, Inc., and (b) to reduce, on an annual basis, the management fee paid on the average net assets of the Trust in excess of $1 billion from 0.40% to: 0.40% of average net assets in excess of $1 billion but less than $1.25 billion; 0.375% of average net assets in excess of $1.25 billion but less than $1.50 billion; 0.35% of average net assets in excess of $1.50 billion but less than $2 billion; and 0.325% of average net assets in excess of $2 billion. This undertaking became effective as of December 1, 1991, and may be modified or terminated by the Manager at any time. Shareholder Services, Inc. (SSI), a subsidiary of OFI, is the transfer and shareholder servicing agent for the Trust, and for other registered investment companies. SSI's total costs of providing such services are allocated ratably to these companies. Under an approved service plan, the Trust may expend up to 0.20% of its net assets annually to reimburse certain securities dealers and other financial institutions and organizations for costs incurred in distributing Trust shares. 22 Exhibit A DESCRIPTION OF SECURITIES RATINGS Below is a description of the two highest rating categories for Short Term Debt and Long Term Debt by the "Nationally-Recognized Statistical Rating Organizations" which the Manager evaluates in purchasing securities on behalf of the Trust. The ratings descriptions are based on information supplied by the ratings organizations to subscribers. Short Term Debt Ratings. Moody's Investors Service, Inc. ("Moody's"): The following rating designations for commercial paper (defined by Moody's as promissory obligations not having original maturity in excess of nine months), are judged by Moody's to be investment grade, and indicate the relative repayment capacity of rated issuers: Prime-1: Superior capacity for repayment. Capacity will normally be evidenced by the following characteristics: (a) leveling market positions in well-established industries; (b) high rates of return on funds employed; (c) conservative capitalization structures with moderate reliance on debt and ample asset protection; (d) broad margins in earning coverage of fixed financial charges and high internal cash generation; and (e) well established access to a range of financial markets and assured sources of alternate liquidity. Prime-2: Strong capacity for repayment. This will normally be evidenced by many of the characteristics cited above but to a lesser degree. Earnings trends and coverage ratios, while sound, will be more subject to variation. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternate liquidity is maintained. Moody's ratings for state and municipal short-term obligations are designated "Moody's Investment Grade" ("MIG"). Short-term notes which have demand features may also be designated as "VMIG". These rating categories are as follows: MIG1/VMIG1: Best quality. There is present strong protection by established cash flows, superior liquidity support or demonstrated broadbased access to the market for refinancing. MIG2/VMIG2: High quality. Margins of protection are ample although not so large as in the preceding group. Standard & Poor's Corporation ("S&P"): The following ratings by S&P for commercial paper (defined by S&P as debt having an original maturity of no more than 365 days) assess the likelihood of payment: A-1: Strong capacity for timely payment. Those issues determined to possess extremely strong safety characteristics are denoted with a plus sign (+) designation. A-23 A-2: Satisfactory capacity for timely payment. However, the relative degree of safety is not as high as for issues designated "A-1". S&P's ratings for Municipal Notes due in three years or less are: SP-1: Very strong or strong capacity to pay principal and interest. Those issues determined to possess overwhelming safety characteristics will be given a plus (+) designation. SP-2: Satisfactory capacity to pay principal and interest. S&P assigns "dual ratings" to all municipal debt issues that have a demand or double feature as part of their provisions. The first rating addresses the likelihood of repayment of principal and interest as due, and the second rating addresses only the demand feature. With short-term demand debt, S&P's note rating symbols are used with the commercial paper symbols (for example, "SP- 1+/A-1+"). Fitch Investors Service, Inc. ("Fitch"): Fitch assigns the following short- term ratings to debt obligations that are payable on demand or have original maturities of generally up to three years, including commercial paper, certificates of deposit, medium-term notes, and municipal and investment notes: F-1+: Exceptionally strong credit quality; the strongest degree of assurance for timely payment. F-1: Very strong credit quality; assurance of timely payment is only slightly less in degree than issues rated "F-1+". F-2: Good credit quality; satisfactory degree of assurance for timely payment, but the margin of safety is not as great as for issues assigned "F-1+" or "F-1" ratings. Duff & Phelps, Inc. ("Duff & Phelps"): The following ratings are for commercial paper (defined by Duff & Phelps as obligations with maturities, when issued, of under one year), asset-backed commercial paper, and certificates of deposit (the ratings cover all obligations of the institution with maturities, when issued, of under one year, including bankers' acceptance and letters of credit): Duff 1+: Highest certainty of timely payment. Short-term liquidity, including internal operating factors and/or access to alternative sources of funds, is outstanding, and safety is just below risk-free U.S. Treasury short-term obligations. Duff 1: Very high certainty of timely payment. Liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. Duff 1-: High certainty of timely payment. Liquidity factors are strong and supported by good fundamental protection factors. Risk factors are very small. Duff 2: Good certainty of timely payment. Liquidity factors and company fundamentals are sound. Although ongoing funding needs may enlarge total financing requirements, access to capital markets is good. Risk factors are small. IBCA Limited or its affiliate IBCA Inc. ("IBCA"): Short-term ratings, including commercial paper (with maturities up to 12 months), are as follows: A1: Obligations supported by the highest capacity for timely repayment. A1: Obligations supported by a very strong capacity for timely repayment. A2: Obligations supported by a strong capacity for timely repayment, although such capacity may be susceptible to adverse changes in business, economic, or financial conditions. Thomson BankWatch, Inc. ("TBW"): The following short-term ratings apply to commercial paper, certificates of deposit, unsecured notes, and other securities having a maturity of one year or less. TBW-1: The highest category; indicates the degree of safety regarding timely repayment of principal and interest is very strong. TBW-2: The second highest rating category; while the degree of safety regarding timely repayment of principal and interest is strong, the relative degree of safety is not as high as for issues rated "TBW-1". Long Term Debt Ratings. These ratings are relevant for securities purchased by the Trust with a remaining maturity of 397 days or less, or for rating issuers of short-term obligations. Moody's: Bonds (including municipal bonds) are rated as follows: Aaa: Judged to be the best quality. They carry the smallest degree of investment risk and are generally referred to as "gilt edge." Interest payments are protected by a large or by an exceptionally stable margin, and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong positions of such issues. Aa: Judged to be of high quality by all standards. Together with the "Aaa" group they comprise what are generally known as high-grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in "Aaa" securities or fluctuations of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in "Aaa" securities. Moody's applies numerical modifiers "1", "2" and "3" in its "Aa" rating classification. The modifier "1" indicates that the security ranks in the higher end of its generic rating category; the modifier "2" indicates a mid-range ranking; and the modifier "3" indicates that the issue ranks in the lower end of its generic rating category. A-24 Standard & Poor's: Bonds (including municipal bonds) are rated as follows: AAA: The highest rating assigned by S&P. Capacity to pay interest and repay principal is extremely strong. AA: A strong capacity to pay interest and repay principal and differ from "AAA" rated issues only in small degree. Fitch: AAA: Considered to be investment grade and of the highest credit quality. The obligor has an exceptionally strong ability to pay interest and repay principal, which is unlikely to be affected by reasonably foreseeable events. AA: Considered to be investment grade and of very high credit quality. The obligor's ability to pay interest and repay principal is very strong, although not quite as strong as bonds rated "AAA". Plus (+) and minus (-) signs are used in the "AA" category to indicate the relative position of a credit within that category. Because bonds rated in the "AAA" and "AA" categories are not significantly vulnerable to foreseeable future developments, short-term debt of these issuers is generally rated "F-1+". Duff & Phelps: AAA: The highest credit quality. The risk factors are negligible, being only slightly more than for risk-free U.S. Treasury debt. AA: High credit quality. Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Plus (+) and minus (-) signs are used in the "AA" category to indicate the relative position of a credit within that category. IBCA: Long-term obligations (with maturities of more than 12 months) are rated as follows: AAA: The lowest expectation of investment risk. Capacity for timely repayment of principal and interest is substantial such that adverse changes in business, economic, or financial conditions are unlikely to increase investment risk significantly. AA: A very low expectation for investment risk. Capacity for timely repayment of principal and interest is substantial. Adverse changes in business, economic, or financial conditions may increase investment risk albeit not very significantly. A plus (+) or minus (-) sign may be appended to a long term rating to denote relative status within a rating category. TBW: TBW issues the following ratings for companies. These ratings assess the likelihood of A-25 receiving payment of principal and interest on a timely basis and incorporate TBW's opinion as to the vulnerability of the company to adverse developments, which may impact the market's perception of the company, thereby affecting the marketability of its securities. A: Possesses an exceptionally strong balance sheet and earnings record, translating into an excellent reputation and unquestioned access to its natural money markets. If weakness or vulnerability exists in any aspect of the company's business, it is entirely mitigated by the strengths of the organization. A/B: The company is financially very solid with a favorable track record and no readily apparent weakness. Its overall risk profile, while low, is not quite as favorable as for companies in the highest rating category. A-26 Exhibit B CORPORATE INDUSTRY CLASSIFICATIONS Aerospace/Defense Air Transportation Auto Parts Distribution Automotive Bank Holding Companies Banks Beverages Broadcasting Broker-Dealers Building Materials Cable Television Chemicals Commercial Finance Computer Hardware Computer Software Conglomerates Consumer Finance Containers Convenience Stores Department Stores Diversified Financial Diversified Media Drug Stores Drug Wholesalers Durable Household Goods Education Electric Utilities Electrical Equipment Electronics Energy Services & Producers Entertainment/Film Environmental Food Gas Utilities Gold Health Care/Drugs Health Care/Supplies & Services Homebuilders/Real Estate Hotel/Gaming Industrial Services Insurance Leasing & Factoring Leisure Manufacturing Metals/Mining Nondurable Household Goods Oil - Integrated Paper Publishing/Printing Railroads Restaurants Savings & Loans Shipping Special Purpose Financial Specialty Retailing Steel Supermarkets Telecommunications - Technology Telephone - Utility Textile/Apparel Tobacco Toys Trucking A-23 Exhibit C AUTOMATIC WITHDRAWAL PLAN PROVISIONS By requesting an Automatic Withdrawal Plan, the shareholder agrees to the terms and conditions applicable to such plans, as stated below and elsewhere in the Application for such Plans, and the Prospectus and this Statement of Additional Information as they may be amended from time to time by the Trust and/or the Distributor. When adopted, such amendments will automatically apply to existing Plans. Trust shares will be redeemed as necessary to meet withdrawal payments. Shares acquired without a sales charge will be redeemed first and thereafter shares acquired with reinvested dividends and distributions followed by shares acquired with a sales charge will be redeemed to the extent necessary to make withdrawal payments. Depending upon the amount withdrawn, the investor's principal may be depleted. Payments made to shareholders under such plans should not be considered as a yield or income on investment. Purchases of additional shares concurrently with withdrawals are undesirable because of sales charges on purchases when made. Accordingly, a shareholder may not maintain an Automatic Withdrawal Plan while simultaneously making regular purchases. 1. Shareholder Services, Inc., the Transfer Agent of the Trust, will administer the Automatic Withdrawal Plan (the "Plan") as agent for the person (the "Planholder") who executed the Plan authorization and application submitted to the Transfer Agent. 2. Certificates will not be issued for shares of the Trust purchased for and held under the Plan, but the Transfer Agent will credit all such shares to the account of the Planholder on the records of the Trust. Any share certificates now held by the Planholder may be surrendered unendorsed to the Transfer Agent with the Plan application so that the shares represented by the certificate may be held under the Plan. Those shares will be carried on the Planholder's Plan Statement. 3. Distributions of capital gains must be reinvested in shares of the Trust, which will be done at net asset value without a sales charge. Dividends may be paid in cash or reinvested. 4. Redemptions of shares in connection with disbursement payments will be made at the net asset value per share determined on the redemption date. 5. Checks or ACH payments will be transmitted three business days prior to the date selected for receipt of the monthly or quarterly payment (the date of receipt is approximate), according to the choice specified in writing by the Planholder. 6. The amount and the interval of disbursement payments and the address to which checks are to be mailed may be changed at any time by the Planholder on written notification to the Transfer Agent. The Planholder should allow at least two weeks' time in mailing such notification before the requested change can be put in effect. A-24 7. The Planholder may, at any time, instruct the Transfer Agent by written notice (in proper form in accordance with the requirements of the then current Prospectus of the Trust) to redeem all, or any part of, the shares held under the Plan. In such case, the Transfer Agent will redeem the number of shares requested at the net asset value per share in effect in accordance with the Trust's usual redemption procedures and will mail a check for the proceeds of such redemption to the Planholder. 8. The Plan may, at any time, be terminated by the Planholder on written notice to the Transfer Agent, or by the Transfer Agent upon receiving directions to that effect from the Trust. The Transfer Agent will also terminate the Plan upon receipt of evidence satisfactory to it of the death or legal incapacity of the Planholder. Upon termination of the Plan by the Transfer Agent or the Trust, shares remaining unredeemed will be held in an uncertificated account in the name of the Planholder, and the account will continue as a dividend-reinvestment, uncertificated account unless and until proper instructions are received from the Planholder, his executor or guardian, or as otherwise appropriate. 9. For purposes of using shares held under the Plan as collateral, the Planholder may request issuance of a portion of his shares in certificated form. Upon written request from the Planholder, the Transfer Agent will determine the number of shares as to which a certificate may be issued, so as not to cause the withdrawal checks to stop because of exhaustion of uncertificated shares needed to continue payments. Should such uncertificated shares become exhausted, Plan withdrawals will terminate. 10. The Transfer Agent shall incur no liability to the Planholder for any action taken or omitted by the Transfer Agent in good faith. 11. In the event that the Transfer Agent shall cease to act as transfer agent for the Trust, the Planholder will be deemed to have appointed any successor transfer agent to act as his agent in administering the Plan. A-25 Investment Advisor and Distributor Centennial Asset Management Corporation 3410 South Galena Street Denver, Colorado 80231 Transfer Agent and Shareholder Servicing Agent Shareholder Services, Inc. P.O. Box 5143 Denver, Colorado 80217-5143 1-800-525-9310 Custodian Citibank, N.A. 399 Park Avenue New York, New York 10043 Independent Auditors Deloitte & Touche LLP 555 Seventeenth Street, Suite 3600 Denver, Colorado 80202-3942 Legal Counsel Myer, Swanson, Adams & Wolf, P.C. The Colorado State Bank Building 1600 Broadway - Suite 1480 Denver, Colorado 80202 PXO150.001 1196 A-26 DAILY CASH ACCUMULATION FUND, INC. Supplement dated August 14, 1997 to the Prospectus dated April 25, 1997 This Supplement to the Prospectus replaces the Supplement dated May 1, 1997 and changes the Prospectus as follows: 1. The following paragraphs are added on page 9 at the end of "How the Fund is Managed": The Board of Directors of the Fund has determined that it is in the best interest of the Fund's shareholders that the Fund reorganize with and into Centennial Money Market Trust. The Board of Directors unanimously approved the terms of an Agreement and Plan of Reorganization to be entered into between these funds (the "Reorganization Plan") and the transactions contemplated (the transactions are referred to as the "Reorganization"). The Board of Directors further determined that the Reorganization should be submitted to the Fund's shareholders for approval, and recommended that shareholders approve the Reorganization. Pursuant to the Reorganization Plan, (i) substantially all of the assets of the Fund would be exchanged for shares of Centennial Money Market Trust, (ii) these shares of Centennial Money Market Trust would be distributed to the shareholders of the Fund, (iii) the Fund would be liquidated, and (iv) the Fund would be dissolved and, in connection with the dissolution, the outstanding shares of the Fund would be canceled. It is expected that the Reorganization will be tax-free pursuant to Section 368(a)(1) of the Internal Revenue Code of 1986, as amended, and the Fund will request an opinion from the Fund's independent auditors to that effect. A meeting of the shareholders has been scheduled for November 18, 1997 to vote on the Reorganization. Approval of the Reorganization requires the affirmative vote of the holders of a majority of the total number of shares outstanding and entitled to vote thereon. There is no assurance that the Fund's shareholders will approve the Reorganization. Details about the Reorganization will be contained in a proxy statement and other soliciting materials to be sent to the Fund's shareholders of record as of September 19, 1997. Persons who become shareholders of the Fund after the record date for the shareholder meeting will not be entitled to vote on the Reorganization. Continued 2. In "Exchange Privilege" under "Exchanges of Shares" on page 15, the fourth sentence of the third paragraph is replaced by the following: The redemption proceeds of shares of the Fund acquired by exchange of Class A shares of an Eligible Fund purchased subject to a CDSC, that are redeemed within 12 months of the end of the calendar month of the initial purchase of the exchanged shares (18 months for shares purchased prior to May 1, 1997), will be subject to the CDSC as described in the prospectus of that other Eligible Fund. 3. The section captioned "Exchanges of Shares" is revised by adding the following after the sub-section captioned "Telephone Instructions" on page 16: Shareholder Transactions by Fax. Beginning May 30, 1997, requests for certain account transactions may be sent to the Transfer Agent by fax (telecopier). Please call 1-800-525-7048 for information about which transactions are included. Transaction requests submitted by fax are subject to the same rules and restrictions as written and telephone requests described in this Prospectus. August 14, 1997 PS0140.002 Daily Cash Accumulation Fund, Inc. Prospectus dated April 25, 1997 Daily Cash Accumulation Fund, Inc. is a no-load "money market" mutual fund that seeks the maximum current income that is consistent with low capital risk and the maintenance of liquidity. The Fund seeks to achieve this objective by investing in "money market" securities meeting specified quality standards. An investment in the Fund is neither insured nor guaranteed by the U.S. Government. While the Fund seeks to maintain a stable net asset value of $1.00 per share, there can be no assurance that the Fund will be able to do so. See "Investment Objective and Policies." Shares of the Fund may be purchased directly from dealers having sales agreements with the Fund's Distributor and also are offered to participants in Automatic Purchase and Redemption Programs (the "Programs") established by certain brokerage firms with which the Fund's Distributor has entered into agreements for that purpose. See "How to Buy Shares," below for more details. Program participants should also read the description of the Program provided by their broker. This Prospectus explains concisely what you should know before investing in the Fund. Please read this Prospectus carefully and keep it for future reference. You can find more detailed information about the Fund in the April 25, 1997 Statement of Additional Information. For a free copy, call Shareholder Services, Inc., the Fund's Transfer Agent, at 1-800-525-9310 or write to the Transfer Agent at the address on the back cover. The Statement of Additional Information has been filed with the Securities and Exchange Commission and is incorporated into this Prospectus by reference (which means that it is legally part of this Prospectus). Shares of the Fund are not deposits or obligations of any bank, are not guaranteed by any bank, and are not insured by the F.D.I.C. or any other agency and involve investment risks including the possible loss of the principal amount invested. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. Contents ABOUT THE FUND Expenses Financial Highlights Investment Objective and Policies How the Fund Is Managed Performance of the Fund ABOUT YOUR ACCOUNT How to Buy Shares Purchases Through Automatic Purchase and Redemption Programs Direct Purchases Payment by Check Payment by Federal Funds Wire Guaranteed Payment Automatic Investment Plan General Service Plan How to Sell Shares Program Participants Shares of the Fund Owned Directly Regular Redemption Procedure Expedited Redemption Procedure Check Writing Telephone Redemptions Automatic Withdrawal Plan General Information on Redemptions Distributions from Retirement Plans Exchanges of Shares Retirement Plans Dividends, Distributions and Taxes ABOUT THE FUND Expenses The following tables set forth the fees that an investor in the Fund might pay and the expenses paid by the Fund during the Fund's fiscal year ended December 31, 1996. o Shareholder Transaction Expenses Maximum Sales Charge on Purchases (as a % of Offering price) None - ------------------------------------------------------------------- Maximum Sales Charge on Reinvested Dividends None - ------------------------------------------------------------------- Redemption Fee None(1) - ------------------------------------------------------------------- Exchange Fee None (1) There is a $10 transaction fee for redemptions paid by Federal Funds wire, but not for redemptions paid by check. o Annual Fund Operating Expenses (as a percentage of average annual net assets) Management Fees (after expense assumption) 0.36% - ------------------------------------------------------------------- 12b-1 Service Plan Fees 0.20% - ------------------------------------------------------------------- Other Expenses 0.11% - ------------------------------------------------------------------- Total Fund Operating Expenses (after expense assumption) 0.67% The purpose of these tables is to assist an investor in understanding the various costs and expenses that an investor in the Fund will bear directly (shareholder transaction expenses) and indirectly (annual fund operating expenses). "Other Expenses" includes such expenses as custodial and transfer agent fees and audit, legal and other business operating expenses, but excludes extraordinary expenses. The Annual Fund Operating Expenses shown are net of a voluntary expense assumption undertaking by the Fund's investment manager, Centennial Asset Management Corporation (the "Manager"). Without such assumption, "Management Fees" and "Total Fund Operating Expenses" would have been 0.37% and 0.68% of average net assets, respectively. The expense assumption undertaking is -3- described in "The Manager and Its Affiliates" in the Statement of Additional Information and may be withdrawn or amended at any time. For further details concerning expenses, see the Fund's financial statements included in the Statement of Additional Information. o Example. The following example applies the operating expenses shown in the table expenses to a hypothetical $1,000 investment in shares of the Fund over the time periods shown below, assuming a 5% annual rate of return on the investment and also assuming that the shares are redeemed at the end of each stated period. The amounts shown below are the cumulative costs of such hypothetical $1,000 investment for the periods shown. 1 year 3 years 5 years 10 years ------ ------- ------- -------- $7 $21 $37 $83 This example shows the effect of expenses on an investment in the Fund, but is not meant to predict actual or expected costs or investment returns of the Fund, all of which may be more or less than those shown. Financial Highlights The table on the following page presents selected financial information about the Fund including per share data and expense ratios and other data based on the Fund's average net assets. This information has been audited by Deloitte & Touche LLP independent auditors, whose report on the financial statements of the Fund for the fiscal year ended December 31, 1996 is included in the Statement of Additional Information. -4- FINANCIAL HIGHLIGHTS
Year Ended December 31, --------------------------------------------------------------------------------------- 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ----------------------------------------------------------------------------------------------------------------------------------- Income from investment operations - net investment income and net realized gain .05 .05 .04 .03 .03 .06 .08 .08 .07 .06 Dividends and distributions to shareholders (.05) (.05) (.04) (.03) (.03) (.06) (.08) (.08) (.07) (.06) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE(1) 4.93% 5.47% 3.77% 2.69% 3.54% 5.87% 7.93% 8.94% 7.18% 6.51% - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in millions) $3,602 $3,524 $2,958 $3,589 $4,061 $5,208 $5,025 $4,920 $3,128 $2,555 - ----------------------------------------------------------------------------------------------------------------------------------- Average net assets (in millions) $3,591 $3,379 $3,378 $3,940 $4,760 $5,434 $4,849 $4,112 $2,809 $2,541 - ----------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: Net investment income 4.82% 5.32% 3.64% 2.67% 3.50% 5.64% 7.61% 8.58% 7.01% 6.10% Expenses, before voluntary reimbursement by the Manager 0.68% 0.71% 0.74% 0.74% 0.70% 0.67% 0.68% 0.71% 0.77% 0.78% Expenses, net of voluntary reimbursement by the Manager 0.67% N/A 0.73% N/A N/A N/A N/A N/A N/A N/A
1. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods of less than one full year. Total returns reflect changes in net investment income only. Investment Objective and Policies Objective and Policies. The Fund is a no-load "money market" fund. It is an open-end, diversified management investment company incorporated in Maryland in 1981. It was originally organized as a Delaware corporation in 1972. The Fund's objective is to seek the maximum current income that is consistent with low capital risk and maintenance of liquidity. The value of the Fund's shares is not insured or guaranteed by any government agency. However, shares held in brokerage accounts could be eligible for coverage by the Securities Investor Protection Corporation for losses arising from the insolvency of the brokerage firm. The Fund's shares may be purchased at their net asset value, which will remain fixed at $1.00 per share except under extraordinary circumstances (see "Determination of Net Asset Value Per Share" in the Statement of Additional Information for further information). There can be no assurance, however, that the Fund's net asset value will not vary or that the Fund will achieve its investment objective. In seeking its objective, the Fund may invest in the securities discussed below. The Fund's investment policies and practices are not "fundamental" policies (as defined below) unless a particular policy is identified as fundamental. The Board may change non- fundamental investment policies without shareholder approval. The Fund's investment objective is a fundamental policy. Securities in Which the Fund Invests. The following is a brief description of the types of securities in which the Fund may invest: |X| U.S. Government Securities. The Fund may invest in obligations issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities, maturing in twelve months or less from the date of purchase. |X| Bank Obligations and Instruments Secured Thereby. The Fund may invest in time deposits, certificates of deposit, bankers' acceptances and other bank obligations if they are obligations of: (1) any U.S. bank having total assets at least equal to $1 billion, or (2) any foreign bank, if such bank has total assets at least equal to U.S. $1 billion. The Fund may also invest in instruments secured by such obligations. Such foreign obligations or instruments must be payable in U.S. dollars and mature in twelve months or less from the date of purchase. For purposes of this section, the term "bank" includes commercial banks, savings banks, and savings and loan associations. The term "foreign bank" -5- includes foreign branches of U.S. banks (issuers of "Eurodollar" instruments), U.S. branches and agencies of foreign banks (issuers of "Yankee dollar" instruments) and foreign branches of foreign banks. The ratings restrictions described below do not apply to banks in which the Fund's cash is kept. |X| Commercial Paper and Certain Debt Obligations. The Fund may invest in any "Eligible Security" permissible under Rule 2a-7 (discussed below). The securities must mature in 12 months from the date of purchase, have been called for redemption by the issuer if the redemption is effective within one year, or mature within one year in accordance with the provisions of that Rule. These securities include commercial paper maturing in nine months or less from the date of purchase, variable and floating rate notes or master demand notes (described in "Investment Objective and Policies" in the Statement of Additional Information), and other securities discussed below. o Floating Rate/Variable Rate Notes. Some of the notes the Fund may purchase may have variable or floating interest rates. Variable rates are adjustable at stated periodic intervals of no more than one year. Floating rates are automatically adjusted according to a specified market rate for such investments, such as the prime rate of a bank, or the 90 day U.S. Treasury bill rate. The Fund may purchase these obligations if they have a remaining maturity of one year or less; if their maturity is greater than one year, they may be purchased if they have a demand feature that permits the Fund to recover the principal amount of the underlying security at specified intervals not exceeding one year and upon no more than 30 days' notice. Such obligations may be secured by bank letters of credit or other credit support arrangements. See "Floating Rate/Variable Rate Obligations" in the Statement of Additional Information for more details. |X| Other Obligations. The Fund may invest in obligations, other than those listed above, if accompanied by a guarantee of principal and interest or letter of credit, provided that the guarantee or letter of credit is that of a bank or corporation whose certificates of deposit or commercial paper may otherwise be purchased by the Fund. Such obligations and guarantees must be due within twelve months or less from the date of purchase. Also, the Fund may invest in obligations of the types listed above that mature in more than twelve months, if they are purchased subject to repurchase agreements calling for delivery in twelve months or less. -6- o Board-Approved Instruments. The Fund may invest in obligations, other than those discussed above, approved by the Fund's Board of Directors and which are in accordance with the Fund's investment objective, policies and restrictions. One such type of obligation which the Board has approved is bank loan participation agreements, described under "Investment Objective and Policies" in the Statement of Additional Information. Ratings of Securities. Under Rule 2a-7 of the Investment Company Act of 1940, as amended (the "Investment Company Act"), the Fund uses the amortized cost method to value its portfolio securities to determine the Fund's net asset value per share. Rule 2a-7 places restrictions on a money market fund's investments. Under the Rule, the Fund may purchase only those securities that the Manager under procedures approved by the Fund's Board of Directors has determined have minimal credit risk and are "Eligible Securities," as defined below. An "Eligible Security" is (a) one that has received a rating in one of the two highest short-term rating categories by any two "nationally-recognized statistical rating organizations" (as defined in the Rule) ("Rating Organizations"), or, if only one Rating Organization has rated that security, by that Rating Organization, or (b) an unrated security that is judged by the Manager to be of comparable quality to investments that are "Eligible Securities" rated by Rating Organizations. The Rule permits the Fund to purchase "First Tier Securities," which are Eligible Securities rated in the highest rating category for short-term debt obligations by at least two Rating Organizations, or, if only one Rating Organization has rated a particular security, by that Rating Organization, or comparable unrated securities. Under the Rule, the Fund may invest only up to 5% of its assets in "Second Tier Securities," which are Eligible Securities that are not "First Tier Securities." In addition to the overall 5% limit on Second Tier Securities, the Fund may not invest more than (i) 5% of its total assets in the securities of any one issuer (other than the U.S. Government, its agencies or instrumentalities) or (ii) 1% of its total assets or $1 million (whichever is greater) in Second Tier Securities of any one issuer. Under current provisions of Rule 2a-7, the Fund's Board must approve or ratify the purchase of Eligible Securities that are unrated or are rated by only one Rating Organization. Additionally, under Rule 2a-7, the Fund must maintain a dollar-weighted average portfolio maturity of no more than 90 days, and the maturity of any single portfolio investment may not exceed 397 days. Some of the Fund's existing investment -7- restrictions (which are fundamental policies that may be changed only by shareholder vote) are more restrictive than the provisions of Rule 2a-7. For example, as a matter of fundamental policy, the Fund may not invest in any debt instrument having a maturity in excess of one year from the date of the investment. The Fund's Board has adopted procedures under Rule 2a-7 pursuant to which the Board has delegated to the Manager certain responsibilities, in accordance with the Rule, of conforming the Fund's investments with the requirements of the Rule and those procedures. Appendix A to the Statement of Additional Information contains descriptions of the rating categories of Rating Organizations. Ratings at the time of purchase will determine whether securities may be acquired under the above restrictions. Subsequent downgrades in ratings may require reassessments of the credit risk presented by a security and may require its sale. The rating restrictions described in this Prospectus do not apply to banks in which the Fund's cash is kept. See "Ratings of Securities" in "Investment Objective and Policies" in the Statement of Additional Information for further details. Other Investment Techniques and Strategies. The Fund may also use the investment techniques and strategies described below. The Statement of Additional Information contains more information about some of these practices. o Obligations of Foreign Banks. The Fund's investment in obligations of foreign banks (which obligations, as described above, must be payable in U.S. dollars), may involve the following considerations not typically associated with the obligations of domestic banks: (i) exchange control regulations; (ii) availability of information about the issuer; (iii) differences in accounting, auditing and financial reporting standards and government regulation; (iv) the possibility of expropriation or confiscatory taxation, political or social instability or diplomatic developments; (v) the differences between the economies of the United States and the applicable foreign country; and (vi) greater difficulties in commencing a lawsuit against the issuer of a foreign security than against a U.S. issuer. The Fund will not invest in obligations of foreign banks which will cause more than 25% of the Fund's net assets to be so invested. o Repurchase Agreements. The Fund may acquire securities that are subject to repurchase agreements in order to generate income while providing liquidity. The Fund's repurchase agreements -8- will comply with the collateral requirements of Rule 2a-7. If the vendor fails to pay the agreed upon repurchase price on the delivery date, the Fund's risks may include any costs of disposing of the collateral, and any loss resulting from any delay in foreclosing on the collateral. The Fund will not enter into a repurchase agreement that will cause more than 10% of the Fund's net assets at the time of purchase to be subject to repurchase agreements maturing in more than seven days. There is no limit on the amount of the Fund's net assets that may be subject to repurchase agreements maturing in seven days or less. See "Repurchase Agreements" in "Investment Objective and Policies" in the Statement of Additional Information for more details. o Illiquid and Restricted Securities. Under the policies and procedures established by the Fund's Board of Directors, the Manager determines the liquidity of certain of the Fund's investments. Investments may be illiquid because of the absence of an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. A restricted security is one that has a contractual restriction on its resale or which cannot be sold publicly until it is registered under the Securities Act of 1933. The Fund will not purchase or otherwise acquire any security if, as a result, more than 10% of its net assets would be invested in securities that are illiquid by virtue of the absence of a readily available market or because of legal or contractual restrictions on resale. The Fund's percentage limitation on these investments does not apply to certain restricted securities that are eligible for resale to qualified institutional purchasers. The Manager monitors holdings of illiquid securities on an ongoing basis and at times the Fund may be required to sell some holdings to maintain adequate liquidity. The Fund may invest up to 25% of its net assets in restricted securities, subject to the above 10% limitation on illiquid securities. For further information, see "Illiquid and Restricted Securities" in "Investment Objective and Policies" in the Statement of Additional Information. o Investment Restrictions. The Fund has certain investment restrictions which, together with its investment objective, are fundamental policies changeable only by the vote of a "majority of the Fund's outstanding voting securities" (as defined in the Investment Company Act). See the Statement of Additional Information. Under some of those restrictions, the Fund cannot do any of the following: -9- o make loans, except through the purchase of the kinds of debt securities described above; repurchase agreements are not considered loans for purposes of this restriction; the Fund may also lend its portfolio securities as described in the Statement of Additional Information; o borrow money in excess of 10% of the value of its assets; it may borrow only as a temporary measure for extraordinary or emergency purposes; no assets of the Fund may be pledged, mortgaged or assigned to secure a debt; o invest more than 5% of the value of its total assets in securities of any one issuer, not including government or government agency securities; o purchase more than 10% of the outstanding non-voting securities or more than 10% of the total debt securities of any one issuer; o invest in any debt instrument having a maturity in excess of one year from the date of the investment or, in the case of a debt instrument subject to a repurchase agreement or called for redemption, having a repurchase or redemption date more than one year from the date of the investment; or o concentrate investments to the extent of 25% of its assets in any industry; however, there is no limitation as to investment in obligations issued by domestic banks or savings and loan associations (for this purpose, foreign branches of domestic banks are not considered to be "domestic banks") or in obligations issued by the U.S. Government or its agencies or instrumentalities. Unless the Prospectus states that a percentage restriction applies on an ongoing basis, it applies only at the time the Fund makes an investment, and the Fund need not sell securities to meet the percentage limits if the value of the investment increases in proportion to the size of the Fund. Additional investment restrictions are listed in "Other Investment Restrictions" in the Statement of Additional Information. How the Fund is Managed Organization and History. The Fund's Board of Directors has overall responsibility for the management of the Fund under the laws of Maryland governing the responsibilities of directors. "Directors and Officers of the Fund" in the Statement of Additional Information identifies the Fund's Directors and officers and provides information about them. Subject to the authority of the Board of Directors, the Manager is responsible for the day-to-day management of the Fund's business, supervises the investment -10- operations of the Fund and the composition of its portfolio and furnishes the Fund advice and recommendations with respect to investments, investment policies and the purchase and sale of securities, pursuant to an Investment Advisory Agreement with the Fund (the "Agreement"). The Fund's shares are of one class, are transferable without restriction, and have equal rights and privileges. Each share of the Fund entitles the holder to one vote per share (and a fractional vote for a fractional share) on matters submitted to a shareholder vote, and to participate pro rata in dividends and distributions and in the net distributable assets of the Fund on liquidation. The Directors may divide or combine the shares into a greater or lesser number of shares without thereby changing the proportionate beneficial interest in the Fund. Shares of the Fund have equal liquidation rights as to the assets of the Fund. When issued, shares of the Fund are fully paid and nonassessable, and have no preemptive or conversion rights. Under the provisions of the Fund's By-Laws and as permitted by Maryland law, the Fund does not anticipate holding annual meetings. The Manager and Its Affiliates. The Manager, a wholly-owned subsidiary of OppenheimerFunds, Inc., has operated as an investment adviser since 1978. OppenheimerFunds, Inc. is owned by Oppenheimer Acquisition Corp., a holding company owned in part by senior management of OppenheimerFunds, Inc., and ultimately controlled by Massachusetts Mutual Life Insurance Company. The Manager and its affiliates currently advise U.S. investment companies with assets aggregating over $60 billion as of March 31, 1997, and having more than 3 million shareholder accounts. o Fees and Expenses. The management fee is payable monthly to the Manager under the terms of the Agreement and is computed on the net assets of the Fund as of the close of business each day at the following annual rates: 0.450% of the first $500 million of net assets; 0.425% of the next $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% of the next $500 million; 0.300% of the next $500 million; 0.275% of the next $500 million; and 0.250% of net assets in excess of $4 billion. The Fund's management fee for its last fiscal year ended December 31, 1996 was 0.36% (after expense assumption by the Manager). See "The Manager and Its Affiliates" in the Statement of Additional Information for more complete information about the Agreement, including a discussion of expense arrangements, exculpation provisions and portfolio transactions. -11- o The Custodian. The Custodian of the assets of the Fund is Citibank, N.A. The Manager and its affiliates presently have banking relationships with the Custodian. See "The Manager and Its Affiliates" in the Statement of Additional Information for further information. The Fund's cash balances in excess of $100,000 held by the Custodian are not protected by Federal deposit insurance. Such uninsured balances may at times be substantial. The rating restrictions under Rule 2a-7 described under "Investment Objective and Policies" do not apply to banks in which the Fund's cash is kept. o The Transfer Agent. Shareholder Services, Inc., a subsidiary of OppenheimerFunds, Inc., acts as Transfer Agent and shareholder servicing agent for the Fund and other mutual funds advised by the Manager on an at-cost basis. The fees to the Transfer Agent do not include payments for any services of the type paid or to be paid, by the Fund to the Distributor and to Recipients under the Service Plan. Shareholders should direct any inquiries regarding the Fund to the Transfer Agent at the address and toll-free phone number on the back cover. Program participants should direct any inquiries regarding the Fund to their broker. Performance of the Fund Yield. From time to time the "yield" and "compounded effective yield" of an investment in the Fund may be advertised. Both yield figures are based on historical earnings per share and are not intended to indicate future performance. The "yield" of the Fund is the income generated by an investment in the Fund over a seven day period, which is then "annualized." In annualizing, the amount of income generated by the investment during that seven days is assumed to be generated each week over a 52 week period, and is shown as a percentage of the investment. The "compounded effective yield" is calculated similarly, but the annualized income earned by an investment in the Fund is assumed to be reinvested. The "compounded effective yield" will therefore be slightly higher than the yield because of the effect of the assumed reinvestment. From time to time the Manager may voluntarily assume a portion of the Fund's expenses (which may result in a reduction of the management fee), thereby lowering the overall expense ratio per share and increasing the Fund's yield and total return during the time such expenses are assumed. See "Performance of the Fund" in the Statement of Additional Information for more information about the methods of calculating these yields. -12- ABOUT YOUR ACCOUNT How to Buy Shares The Fund's shares may be purchased at their offering price, which is net asset value per share without sales charge. The net asset value will remain fixed at $1.00 per share, except under extraordinary circumstances. See "Determination of Net Asset Value Per Share" in the Statement of Additional Information for further details. There can be no guarantee that the Fund will maintain a stable net asset value of $1.00 per share. Centennial Asset Management Corporation (the "Distributor"), may in its sole discretion accept or reject any order for purchase of the Fund's shares. OppenheimerFunds Distributor, Inc. ("OFDI") an affiliate of the Distributor, acts as the sub-distributor for the Fund (the "Sub-Distributor"). The minimum initial investment is $500 ($2,500 if by Federal Funds wire), except as otherwise described in this Prospectus. Subsequent purchases must be in amounts of $25 or more, and may be made through authorized dealers or brokers by forwarding payment to the Distributor at P.O. Box 5143, Denver, Colorado 80217 with the name(s) of all account owners, the account number and the name of the Fund. The minimum initial and subsequent purchase requirements are waived on purchases made by reinvesting dividends from any of the "Eligible Funds" listed in "Dividend Reinvestment in Another Fund" in the Statement of Additional Information or by reinvesting distributions from unit investment trusts for which reinvestment arrangements have been made with the Distributor. Under an Automatic Investment Plan, military allotment plan, 403(b)(7) custodial plan or payroll deduction plan, initial and subsequent investments must be at least $25. No share certificates will be issued unless specifically requested by an investor or the dealer or broker. The Fund intends to be as fully invested as practicable to maximize its yield. Therefore, dividends will accrue on newly- purchased shares only after the Distributor accepts the purchase order at its address in Denver, Colorado, on a day the New York Stock Exchange (the "Exchange") is open (a "regular business day"), under one of the methods of purchasing shares described below. The purchase will be made at the net asset value next determined after the Distributor accepts the purchase order. -13- The Fund's net asset value per share is determined twice each regular business day, at 12:00 Noon and the close of the Exchange that day, which is normally 4:00 P.M., but may be earlier on some days (all references to time in this Prospectus mean New York time), by dividing the net assets of the Fund by the total number of its shares outstanding. The Fund's Board of Directors has established procedures for valuing the Fund's assets, using the amortized cost method as described in "Determination of Net Asset Value Per Share" in the Statement of Additional Information. Purchases Through Automatic Purchase and Redemption Programs. Shares of the Fund are available under Automatic Purchase and Redemption Programs ("Programs") of broker-dealers that have entered into agreements with the Distributor for that purpose. Broker-dealers whose clients participate in such Programs will invest the "free cash balances" in such client's Program account in shares of the Fund selected as the primary Fund by the client for the program account. Such purchases will be made by the broker-dealer under the procedures described in "Guaranteed Payment," below. The Program may have minimum investment requirements established by the broker-dealer. The description of the Program provided by the broker-dealer should be consulted for details, and all questions about investing in, exchanging or redeeming Fund shares through a Program should be directed to the broker-dealer. Direct Purchases. An investor may directly purchase shares of the Fund through any dealer which has a sales agreement with the Distributor or the Sub-Distributor. There are two ways to make a direct initial investment, either (1) complete a Centennial Funds New Account Application and mail it with payment to the Distributor at P.O. Box 5143, Denver, Colorado 80217 (if no dealer is named in the Application, the Sub-Distributor will act as the dealer), or (2) order the shares through your dealer or broker. Purchases made by Application should have a check enclosed, or payment may be made by one of the alternative means described below. |X| Payment by Check. Orders for shares purchased by check in U.S. dollars drawn on a U.S. bank will begin to be effected on the regular business day on which the check (and a purchase application, if the account is new) is accepted by the Distributor. Dividends will begin to accrue on such shares the next regular business day after the purchase order is accepted. For other checks, the shares will not be purchased until the Distributor is able to convert the purchase payment to Federal Funds, and -14- dividends will begin to accrue on such shares on the next regular business day. |X| Payment by Federal Funds Wire. Shares may be purchased by direct shareholders by Federal Funds wire. The minimum investment by wire is $2,500. The investor must first call the Distributor's Wire Department at 1-800-852-8457, to notify the Distributor of the transmittal of the wire and to order the shares. The investor's bank must wire the Federal Funds to Citibank, N.A., ABA No. 0210- 0008-9, for credit to Concentration Account No. 3723-2796, for further credit to Daily Cash Accumulation Fund, Inc. (Custodian Account No. 349-294). The wire must state the investor's name. Shares will be purchased on the regular business day on which the Federal Funds are received by the Custodian prior to the close of the Exchange, which is normally 4:00 P.M., but may be earlier on some days and the Distributor has received and accepted the investor's notification of the wire order prior to the close of the Exchange. Those shares will be purchased at the net asset value next determined after receipt of the Federal Funds and the order. Dividends on newly purchased shares will begin to accrue on the purchase date if the Federal Funds and order for the purchase are received and accepted by 12:00 Noon. Dividends will begin to accrue on the next regular business day if the Federal Funds and purchase order are received and accepted between 12:00 Noon and the close of the Exchange. The investor must also send the Distributor a completed Application when the purchase order is placed to establish a new account. |X| Automatic Investment Plan. Direct investors may purchase shares of the Fund automatically. Automatic Investment Plans may be used to make regular monthly investments ($25 minimum) from the investor's account at a bank or other financial institution. To establish an Automatic Investment Plan from a bank account, a check (minimum $25) for the initial purchase must accompany the Application. Shares purchased by Automatic Investment Plan payments are subject to the redemption restrictions for recent purchases described in "How to Sell Shares." The amount of the Automatic Investment Plan payment may be changed or the automatic investments may be terminated at any time by writing to the Transfer Agent. A reasonable period (approximately 15 days) is required after receipt of such instructions to implement them. The Fund reserves the right to amend, suspend or discontinue offering Automatic Investment Plans at any time without prior notice. -15- |X| Guaranteed Payment. Broker-dealers with sales agreements with the Distributor (including broker-dealers who have made special arrangements with the Distributor for purchases for Program accounts) may place purchase orders with the Distributor for purchases of the Fund's shares prior to 12:00 Noon on a regular business day, and the order will be effected at net asset value determined at 12:00 Noon that day if the broker-dealer guarantees that payment for such shares in Federal Funds will be received by the Fund's Custodian prior to 2:00 P.M., on the same day. Dividends will begin to accrue on the purchase date. If an order is received between 12:00 Noon and the close of the Exchange, which is normally 4:00 P.M., on a regular business day, with the broker- dealer's guarantee that payment for such shares in Federal Funds will be received by the Fund's Custodian by the close of the Exchange on the next regular business day, the order will be effected at the close of the Exchange on the day the order is received, and dividends on such shares will begin to accrue on the next regular business day after the Federal Funds are received. If the broker-dealer guarantees that the Federal Funds payment will be received by the Fund's Custodian by 2:00 P.M. on a regular business day on which an order is placed for shares after 12:00 Noon, the order will be effected at the close of the Exchange that day and dividends will begin to accrue on such shares on the purchase date. General. Dealers and brokers who process orders for the Fund's shares on behalf of their customers may charge a fee for this service. That fee can be avoided by purchasing shares directly from the Fund. The Distributor, in its sole discretion, may accept or reject any order for purchases of the Fund's shares. The sale of shares will be suspended during any period when the determination of net asset value is suspended, and may be suspended by the Board of Directors whenever the Board judges it in the best interest of the Fund to do so. Service Plan. The Fund has adopted a service plan (the "Plan") under Rule 12b-1 of the Investment Company Act pursuant to which the Fund will reimburse the Distributor for all or a portion of its costs incurred in connection with the personal service and maintenance of accounts that hold Fund shares. The Distributor will use all the fees received from the Fund to reimburse dealers, brokers, banks, or other institutions ("Recipients") each month or quarter for providing personal service and maintenance of accounts that hold Fund shares. The services to be provided by Recipients under the Plan include, but shall not be limited to, the following: answering routine inquiries from the Recipient's customers -16- concerning the Fund, providing such customers with information on their investment in Fund shares, assisting in the establishment and maintenance of accounts or sub-accounts in the Fund, making the Fund's investment plans and dividend payment options available, and providing such other information and customer liaison services and the maintenance of accounts as the Distributor or the Fund may reasonably request. Plan payments by the Fund to the Distributor will be made monthly or quarterly in the amount of the lesser of: (i) 0.20% annually of the net asset value of the Fund, computed as of the close of each business day or (ii) the Distributor's actual distribution expenses for that quarter of the type approved by the Board. Any unreimbursed expenses incurred for any quarter by the Distributor may not be recovered in later periods. The Plan has the effect of increasing annual expenses of the Fund by up to 0.20% of average annual net assets from what its expenses would otherwise be. In addition, the Manager may, under the Plan, from time to time from its own resources (which may include the profits derived from the advisory fee it receives from the Fund), make payments to Recipients for distribution, administrative and accounting services performed by Recipients. For further details, see "Service Plan" in the Statement of Additional Information. How to Sell Shares Program Participants. A Program participant may sell (redeem) shares in the Program by writing checks as described below, or by contacting the dealer or broker. A Program participant may also arrange for "Expedited Redemptions," as described below, only through the dealer or broker. Shares of the Fund Owned Directly. Shares of the Fund owned by a shareholder directly (not through a Program) (a "direct shareholder"), may be redeemed in the following ways: |X| Regular Redemption Procedure. To redeem some or all shares in an account (whether or not represented by certificates) under the Fund's regular redemption procedure, a direct shareholder must send the following to the Transfer Agent, Shareholder Services, Inc., P.O. Box 5143, Denver, Colorado 80217 [send courier or express mail deliveries to 10200 E. Girard Avenue, Building D, Denver, Colorado 80231]: (1) a written request for redemption signed by all registered owners exactly as the shares are registered, including fiduciary titles, if any, and specifying the account number and the dollar amount or number of shares to be redeemed; (2) a guarantee of the signatures of all registered -17- owners on the redemption request or on the endorsement on the share certificate or accompanying stock power, by a U.S. bank, trust company, credit union or savings association, or a foreign bank having a U.S. correspondent bank, or by a U.S. registered dealer or broker in securities, municipal securities or government securities, or by a U.S. national securities exchange, registered securities association or clearing agency; (3) any share certificates issued for any of the shares to be redeemed; and (4) any additional documents which may be required by the Transfer Agent for redemption by corporations, partnerships or other organizations, executors, administrators, trustees, custodians, guardians, or from Individual Retirement Accounts ("IRAs") or other retirement plans, or if the redemption is requested by anyone other than the shareholder(s) of record. A signature guarantee is not required for redemptions of $50,000 or less, requested by and payable to all shareholders of record, to be sent to the address of record for that account. Transfers of shares are subject to similar requirements. To avoid delay in redemptions or transfers, shareholders having questions about these requirements should contact the Transfer Agent in writing or by calling 1-800-525-9310 before submitting a request. From time to time the Transfer Agent in its discretion may waive any or certain of the foregoing requirements in particular cases. Redemption or transfer requests will not be honored until the Transfer Agent receives all required documents in proper form. |X| Expedited Redemption Procedure. In addition to the regular redemption procedure set forth above, direct shareholders whose shares are not represented by certificates may arrange to have redemption proceeds of $2,500 or more wired in Federal Funds to a designated commercial bank if the bank is a member of the Federal Reserve wire system. To place a wire redemption request, call the Transfer Agent at 1-800-852-8457. The account number of the designated financial institution and the bank ABA number must be supplied to the Transfer Agent on the Application or dealer settlement instructions establishing the account or may be added to existing accounts or changed only by signature-guaranteed instructions to the Transfer Agent from all shareholders of record. Such redemption requests may be made by telephone, wire or written instructions to the Transfer Agent. The wire for the redemption proceeds of shares redeemed prior to 12:00 Noon normally will be transmitted by the Transfer Agent to the shareholder's designated bank account on the day the shares are redeemed (or, if that day is -18- not a bank business day, on the next bank business day). Shares redeemed prior to 12:00 Noon do not earn dividends on the redemption date. The wire for the redemption proceeds of shares redeemed between 12:00 Noon and the close of the Exchange, which is normally 4:00 P.M., but may be earlier on some days, normally will be transmitted by the Transfer Agent to the shareholder's designated bank account on the next bank business day after the redemption. Shares redeemed between 12:00 Noon and the close of the Exchange earn dividends on the redemption date. There is a $10 fee for each wire. See "Purchase, Redemption and Pricing of Shares" in the Statement of Additional Information for further details. |X| Check Writing. Upon request, the Transfer Agent will provide any direct shareholder of the Fund or any Program participant whose shares are not represented by certificates with forms of drafts ("checks") payable through a bank selected by the Fund (the "Bank"). Checks may be made payable to the order of anyone in any amount not less than $250, and will be subject to the Bank's rules and regulations governing checks. Program participants' checks will be payable from the primary account designated by the Program participant. The Transfer Agent will arrange for checks written by shareholders to be honored by the Bank after obtaining a specimen signature card from the shareholder(s). Program participants should arrange for check writing through their brokers or dealers. If a check is presented for an amount greater than the account value, it will not be honored. Shareholders of joint accounts may elect to have checks honored with a single signature. Checks issued for one Fund account must not be used if the shareholder's account has been transferred to a new account or if the account number or registration has changed. Shares purchased by check or Automatic Investment Plan payments within the prior 10 days may not be redeemed by check writing. A check that would require the redemption of some or all of the shares so purchased is subject to non-payment. The Bank will present checks to the Fund to redeem shares to cover the amount of the check. Checks may not be presented for cash payment at the offices of the Bank or the Fund's Custodian. This limitation does not affect the use of checks for the payment of bills or to obtain cash at other banks. The Fund reserves the right to amend, suspend, or discontinue check writing privileges at any time without prior notice. o Telephone Redemptions. Direct shareholders of the Fund may redeem their shares by telephone by calling the Transfer Agent at 1-800-852-8457. This procedure for telephone redemptions is not -19- available to Program participants. Proceeds of telephone redemptions will be paid by check payable to the shareholder(s) of record and sent to the address of record for the account. Telephone redemptions are not available within 30 days of a change of the address of record. Up to $50,000 may be redeemed by telephone in any seven day period. The Transfer Agent may record any calls. Telephone redemptions may not be available if all lines are busy, and shareholders would have to use the Fund's regular redemption procedure described above. Telephone redemption privileges are not available for newly-purchased (within the prior 10 days) shares or for shares represented by certificates. Telephone redemption privileges apply automatically to each shareholder and the dealer representative of record unless the Transfer Agent receives cancellation instructions from a shareholder of record. If an account has multiple owners, the Transfer Agent may rely on the instructions of any one owner. |X| Automatic Withdrawal Plan. Direct shareholders of the Fund can authorize the Transfer Agent to redeem shares (minimum $50) automatically on a monthly, quarterly semi-annual or annual basis under an Automatic Withdrawal Plan. Shares will be redeemed as of the close of The New York Stock Exchange, which is normally 4:00 P.M. (but may be earlier on some days), three days prior to the date requested by the shareholder for receipt of the payment. The Fund cannot guarantee receipt of payment on the date requested and reserves the right to amend, suspend or discontinue offering such Plans at any time without prior notice. Required minimum distributions from OppenheimerFunds-sponsored retirement plans may not be arranged on this basis. For further details, see the "Automatic Withdrawal Plan Provisions," Appendix B to the Statement of Additional Information. General Information on Redemptions. Payment for redeemed shares is made ordinarily in cash and forwarded within seven days of the Transfer Agent's receipt of redemption instructions in proper form, except under unusual circumstances as determined by the SEC. For accounts registered in the name of a broker-dealer, payment will be forwarded within three business days. The Transfer Agent may delay forwarding a redemption check for recently purchased shares only until the purchase payment has cleared, which may take up to 10 days or more from the purchase date. Such delay may be avoided if the shareholder arranges telephone or written assurance satisfactory to the transfer agent from the bank on which the purchase payment was drawn, or by purchasing shares by Federal Funds wire as described above. Under the Internal Revenue Code of -20- 1986, as amended (the "Internal Revenue Code"), the Fund may be required to impose "back-up" withholding of Federal income tax at the rate of 31% from dividends and distributions the Fund may make if the shareholder has not furnished the Fund a certified taxpayer identification number or has not complied with the provisions of the Internal Revenue Code relating to reporting dividends. The Fund makes no charge for redemption of shares. Dealers or brokers may charge a fee for handling redemption transactions but such fee can be avoided by requesting the redemption directly by the Fund through the Transfer Agent. Under certain circumstances, proceeds of redemptions of shares of the Fund acquired by exchange of shares of Eligible Funds that were purchased subject to a "contingent deferred sales charge" ("CDSC") may be subject to the CDSC (see "Exchange Privilege" below). Distributions from Retirement Plans. Requests for distributions from OppenheimerFunds-sponsored Individual Retirement Accounts ("IRAs"), 403(b)(7) custodial plans, or pension or profit-sharing plans of direct shareholders for which the Manager or its affiliates act as sponsors should be addressed to "Bank of Boston, c/o Shareholder Services, Inc." at the above address, and must (i) state the reason for the distribution, (ii) state the owner's awareness of tax penalties if the distribution is premature, and (iii) conform to the requirements of the plan and the Fund's requirements for regular redemptions discussed above. Participants (other than self-employed persons) in OppenheimerFunds-sponsored pension or profit-sharing plans may not directly request redemption of their accounts. The employer or plan administrator must sign the request. Distributions from such plans are subject to additional requirements under the Internal Revenue Code, and certain documents (available from the Transfer Agent) must be completed before the distribution may be made. Distributions from retirement plans are subject to withholding requirements under the Internal Revenue Code, and IRS Form W-4P (available from the Transfer Agent) must be submitted to the Transfer Agent with the distribution request, or the distribution may be delayed. Unless the shareholder has provided the Transfer Agent with a certified tax identification number, the Internal Revenue Code requires that tax be withheld from any distribution, even if the shareholder elects not to have tax withheld. The Trustee, the Fund, the Manager, the Distributor and the Transfer Agent assume no responsibility to determine whether a distribution satisfies the conditions of applicable tax laws and will not be responsible for any penalties assessed. -21- Exchanges of Shares Exchange Privilege. Shares of the Fund held under a Program may be exchanged for shares of Centennial Money Market Trust, Centennial Government Trust, Centennial Tax Exempt Trust, Centennial California Tax Exempt Trust and Centennial New York Tax Exempt Trust if available for sale in the shareholder's state of residence only by instructions of the broker. Shares of the Fund may, under certain conditions, be exchanged by direct shareholders for Class A shares of certain "Eligible Funds" which are listed in the Statement of Additional Information. Direct shareholders may also obtain a list of the Eligible Funds by calling the transfer agent at 1-800-525-9310. The list of Eligible Funds may change from time to time. Shares of the Fund and of the other Eligible Funds may be exchanged, if all of the following conditions are met: (1) shares of the fund selected for exchange are available for sale in the shareholder's state of residence; (2) the respective prospectuses of the funds whose shares are to be exchanged and acquired offer the Exchange Privilege to the investor; (3) newly-purchased shares (by initial or subsequent investment) are held in an account for at least seven days prior to the exchange; and (4) the aggregate net asset value of the shares surrendered for exchange into a new account is at least equal to the minimum investment requirements of the fund whose shares are to be acquired. In addition to the conditions stated above, shares of the Fund may be exchanged by direct shareholders for shares of any Money Market Fund at net asset value. A list of the Money Market Funds appears in the Statement of Additional Information. Shares of any Money Market Fund (including the Fund) purchased without a sales charge may be exchanged for shares of Eligible Funds offered with a sales charge upon payment of the sales charge (or, if applicable, may be used to purchase shares of Eligible Funds subject to a CDSC); and shares of the Fund acquired by reinvestment of dividends and distributions from any Eligible Fund (except Oppenheimer Cash Reserves) or from any unit investment trust for which reinvestment arrangements have been made with the Distributor may be exchanged at net asset value for shares of any Eligible Fund. The redemption proceeds of shares of the Fund acquired by exchange of Class A shares of an Eligible Fund purchased subject to a CDSC, that are redeemed within 18 months of the end of the calendar month of the initial purchase of the exchanged shares, will be subject to the CDSC as described in the prospectus of that other Eligible Fund. -22- In determining whether the CDSC is payable, shares of the fund not subject to the CDSC are redeemed first, including shares purchased by reinvestment of dividends and capital gains distributions from any Eligible Fund or shares of the fund acquired by exchange of shares of Eligible Funds on which a front-end sales charge was paid or credited, and then other shares are redeemed in the order of purchase. How to Exchange Shares. An exchange may be made by direct shareholders by submitting an Exchange Authorization Form to the Transfer Agent, signed by all registered owners. In addition, direct shareholders of the Fund may exchange shares of the Fund for Class A shares of any Eligible Fund by telephone exchange instructions to the Transfer Agent by a shareholder or the dealer representative of record for an account. The Fund may modify, suspend or discontinue this exchange privilege at any time. Although the Fund will attempt to provide you with notice whenever reasonably able to do so, it may impose these changes at anytime. The Fund reserves the right to reject multiple exchange requests submitted by a shareholder or dealer. Exchange requests must be received by the Transfer Agent by the close of the Exchange on a regular business day to be effected that day. The number of shares exchanged may be less than the number requested if the number requested would include shares subject to a restriction cited above or shares covered by a certificate that is not tendered with such request. Only the shares available for exchange without restriction will be exchanged. General Information on Exchanges. Shares to be exchanged are redeemed on the day the Transfer Agent receives an exchange request in proper form (the "Redemption Date"), as of the close of the Exchange, which is normally 4:00 P.M., but may be earlier on some days. Normally, shares of the fund to be acquired are purchased on the Redemption Date, but such purchases may be delayed by either fund up to five business days if it determines that it would be disadvantaged by an immediate transfer of the redemption proceeds. The Fund in its discretion reserves the right to refuse any exchange request that will disadvantage it. The Eligible Funds have different investment objectives and policies. Each of those funds imposes a sales charge on purchases of Class A shares except the Money Market Funds. For complete information, including sales charges and expenses, a prospectus of the fund into which the exchange is being made should be read prior to an exchange. Dealers and brokers who process exchange orders on -23- behalf of their customers may charge for their services. Direct shareholders may avoid those charges by requesting the Fund directly to exchange shares. For Federal tax purposes, an exchange is treated as a redemption and purchase of shares. Telephone Exchanges. Direct shareholders may place a telephone exchange request by calling the Transfer Agent at 1-800-852-8457. Telephone exchanges are subject to the rules described above. By exchanging shares by telephone, the shareholder is acknowledging receipt of a prospectus of the fund to which the exchange is made and that for full exchanges, any special account features such as Automatic Investment Plans, Automatic Withdrawal Plans and retirement plan contributions will be switched to the new account unless the Transfer Agent is otherwise instructed. Telephone exchange privileges automatically apply to each direct shareholder of record and the dealer representative of record unless and until the Transfer Agent receives written instructions from the shareholder(s) of record canceling such privileges. If an account has multiple owners, the Transfer Agent may rely on the instructions of any one owner. Shares acquired by telephone exchange must be registered exactly as the account from which the exchange was made. Certificated shares are not eligible for telephone exchange. If all telephone exchange lines are busy (which might occur, for example, during periods of substantial market fluctuations), shareholders might not be able to request telephone exchanges and would have to submit written exchange requests. Telephone Instructions. The Transfer Agent has adopted reasonable procedures to confirm that telephone instructions are genuine, by requiring callers to provide tax identification number(s) and other account data or by using PINs, and by confirming such transactions in writing. If the Transfer Agent does not use such reasonable procedures, it may be liable for losses due to unauthorized transactions, but otherwise neither it nor the Fund will be liable for losses or expenses arising out of telephone instructions reasonably believed to be genuine. The Transfer Agent reserves the right to require shareholders to confirm, in writing, telephone exchange or redemption privileges for an account. Retirement Plans The Distributor has available for direct shareholders who purchase shares of the Fund: (i) individual retirement accounts ("IRAs") including Simplified Employee Pension Plans (SEP IRAs); (ii) -24- prototype pension and profit-sharing plans for corporations and self-employed individuals; and (iii) 403(b)(7) custodial plans for employees of public educational institutions and organizations of the type described in Section 501(c)(3) of the Internal Revenue Code. The minimum initial IRA, SEP IRA, pension or profit-sharing plan investment is normally $250. The minimum initial 403(b)(7) plan investment is $25. For further details, including the administrative fees, the appropriate retirement plan should be requested from the Distributor. The Fund reserves the right to discontinue offering its shares to such plans at any time without prior notice. Dividends, Distributions and Taxes Dividends and Distributions. The Fund intends to declare all of its net income, as defined below, as dividends on each regular business day and to pay dividends monthly. Dividends will be payable to shareholders as described above in "How to Buy Shares." All dividends and capital gains distributions for accounts of Program participants are automatically reinvested in Fund shares. Dividends accumulated since the prior payment will be reinvested in full and fractional shares at net asset value on the third Thursday of each calendar month. If a shareholder redeems all shares at any time during a month, the redemption proceeds include all dividends accrued up to the redemption date for shares redeemed prior to 12:00 Noon, and include all dividends accrued through the redemption date for shares redeemed between 12:00 Noon and the close of the Exchange. Program participants may receive cash payments by asking the broker to redeem shares. Participants in an A.G. Edwards & Sons, Inc. Cash Convenience Account Program (other than those whose account is an Individual Retirement Account) holding shares of the Fund will receive account statements five times a year, at the end of March, May, August, October and December, if the only activity in their account during that period is the automatic reinvestment of dividends. Dividends and distributions payable to direct shareholders of the Fund will also be automatically reinvested in shares of the Fund at net asset value, on the third Thursday of each calendar month, unless the shareholder asks the Transfer Agent in writing to pay dividends and distributions in cash or to reinvest them in another Eligible Fund, as described in "Dividend Reinvestment in Another Fund" in the Statement of Additional Information. That notice must be received prior to the record date for a dividend to -25- be effective as to that dividend. Dividends, distributions and the proceeds of redemptions of Fund shares represented by checks returned to the Transfer Agent by the Postal Service as undeliverable will be reinvested in shares of the Fund, as promptly as possible after the return of such check to the Transfer Agent to enable the investor to earn a return on otherwise idle funds. Under the terms of a Program, a broker-dealer may pay out the value of some or all of a Program participant's Fund shares prior to redemption of such shares by the Fund. In such cases, the shareholder will be entitled to dividends on such shares only up to and including the date of such payment. Dividends on such shares accruing between the date of payment and the date such shares are redeemed by the Trusts will be paid to the broker-dealer. Program participants should discuss these arrangements with their broker-dealer. The Fund's net investment income for dividend purposes consists of all interest accrued on portfolio assets, less all expenses of the Fund for such period. Distributions from net realized gains on securities, if any, will be paid at least once each year, and may be made more frequently in compliance with the Internal Revenue Code and the Investment Company Act. Long-term capital gains, if any, will be identified separately when tax information is distributed. The Fund will not make any distributions from net realized securities gains unless capital loss carry forwards, if any, have been used or have expired. Any net realized capital loss is carried forward to offset against gains in later years. To effect its policy of maintaining a net asset value of $1.00 per share, the Fund, under certain circumstances, may withhold dividends or make distributions from capital or capital gains. Tax Status of the Fund's Dividends and Distributions. This discussion relates solely to Federal tax laws and is not exhaustive. A qualified tax adviser should be consulted. Dividends and distributions may be subject to Federal, state and local taxation. See "Tax Status of the Fund's Dividends and Distributions" in the Statement of Additional Information for a further discussion of tax matters affecting the Fund and its distributions, as well as a procedure for electing to reinvest dividends and distributions of any of the Eligible Funds into shares of the Fund at net asset value. -26- Dividends paid by the Fund derived from net investment income or net short-term capital gains are taxable to shareholders as ordinary income, whether received in cash or reinvested, and will not be eligible for the dividends-received deduction for corporations. If the Fund has net realized long-term capital gains in a fiscal year, it may pay an annual "long-term capital gains distribution," which will be so identified when paid and when tax information is distributed. Long-term gains are taxable to shareholders as long-term capital gains whether received in cash or reinvested, and regardless of how long the Fund shares have been held. For information on "backup" withholding on dividends, see "General Information on Redemptions," above. Tax Status of the Fund. If the Fund qualifies as a "regulated investment company" under the Internal Revenue Code, it will not be liable for Federal income taxes on amounts paid by it as dividends and distributions. The Fund qualified during its last fiscal year and intends to qualify in current and future fiscal years, while reserving the right not to qualify. However, the Internal Revenue Code contains a number of complex tests relating to such qualification which the Fund might not meet in any particular fiscal year. If the Fund does not qualify, it would be treated for Federal tax purposes as an ordinary corporation and receive no tax deduction for payments made to shareholders. -27- No dealer, broker, salesperson or any other person has been authorized to give any information or to make any representations other than those contained in this Prospectus or the Statement of Additional Information, and if given or made, such information and representations must not be relied upon as having been authorized by the Fund, the Distributor, or any affiliate thereof. This Prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered hereby in any state to any person to whom it is unlawful to make such offer in such state. Investment Advisor and Distributor Centennial Asset Management Corporation 6803 South Tucson Way Englewood, Colorado 80112 Sub-Distributor OppenheimerFunds Distributor, Inc. P.O. Box 5254 Denver, Colorado 80217 Daily Cash Transfer and Shareholder Servicing Agent Accumulation Fund, Inc. Shareholder Services, Inc. P.O. Box 5143 Prospectus Denver, Colorado 80217-5143 1-800-525-9310 Dated April 25, 1997 Custodian of Portfolio Securities Citibank, N.A. 399 Park Avenue New York, New York 10043 Independent Auditors Deloitte & Touche LLP 555 Seventeenth Street Denver, Colorado 80202 Legal Counsel Myer, Swanson, Adams & Wolf, P.C. 1600 Broadway Denver, Colorado 80202 PR0140.002.0497 Printed on recycled paper DAILY CASH ACCUMULATION FUND, INC. 6803 South Tucson Way, Englewood, Colorado 80112 1-800-525-9310 Statement of Additional Information dated April 25, 1997, as revised May 12, 1997 This Statement of Additional Information of Daily Cash Accumulation Fund, Inc. is not a Prospectus. This document contains additional information about the Fund and supplements information in the Prospectus dated April 25, 1997. It should be read together with the Prospectus, which may be obtained by writing to Shareholder Services, Inc., the Fund's Transfer Agent, P.O. Box 5143, Denver, Colorado 80217, or by calling the toll-free number shown above. Contents Page About the Fund Investment Objective and Policies...........................................2 Other Investment Restrictions...............................................5 Directors and Officers of the Fund..........................................5 The Manager and Its Affiliates..............................................9 Performance of the Fund....................................................12 Service Plan...............................................................13 About Your Account Purchase, Redemption and Pricing of Shares.................................13 Dividends and Taxes........................................................14 Financial Information About the Fund Independent Auditors' Report...............................................17 Financial Statements.......................................................18 Appendices Appendix A: Description of Securities Ratings.............................A-1 Appendix B: Automatic Withdrawal Plan Provisions..........................B-1 Appendix C: Industry Classifications......................................C-1 ABOUT THE FUND Investment Objective and Policies The investment objective and policies of the Fund are described in the Prospectus. Supplemental information about those policies is set forth below. Certain capitalized terms used in this Statement of Additional Information are defined in the Prospectus. The Fund will not make investments with the objective of seeking capital growth. However, the value of the securities held by the Fund may be affected by changes in general interest rates. Because the current value of debt securities varies inversely with changes in prevailing interest rates, if interest rates increase after a security is purchased that security would normally decline in value. Conversely, should interest rates decrease after a security is purchased, its value would rise. However, those fluctuations in value will not generally result in realized gains or losses to the Fund since the Fund does not usually intend to dispose of securities prior to their maturity. A debt security held to maturity is redeemable by its issuer at full principal value plus accrued interest. To a limited degree, the Fund may engage in short-term trading to attempt to take advantage of short-term market variations, or may dispose of a portfolio security prior to its maturity if, on the basis of a revised credit evaluation of the issuer or other considerations, the Fund believes such disposition advisable or it needs to generate cash to satisfy redemptions. In such cases, the Fund may realize a capital gain or loss. Ratings of Securities. The Prospectus describes "Eligible Securities" in which the Fund may invest and indicates that if a security's rating is downgraded, the Manager and/or the Board may have to reassess the security's credit risks. If a security has ceased to be a First Tier Security, the Manager will promptly reassess whether the security continues to present "minimal credit risks." If the Manager becomes aware that any Rating Organization has downgraded its rating of a Second Tier Security or rated an unrated security below its second highest rating category, the Fund's Board of Directors shall promptly reassess whether the security presents minimal credit risks and whether it is in the best interests of the Fund to dispose of it; but if the Fund disposes of the security within five days of the Manager's learning of the downgrade, the Manager will provide the Board with subsequent notice of such downgrade. If a security is in default, or ceases to be an Eligible Security, or is determined no longer to present minimal credit risks, the Board must determine whether it would be in the best interests of the Fund to dispose of the security. The Rating Organizations currently designated as such by the SEC are Standard & Poor's Corporation, Moody's Investors Service, Inc., Fitch Investors Services, Inc., Duff and Phelps, Inc., IBCA Limited and its affiliate, IBCA, Inc. and Thomson BankWatch, Inc. A description of the ratings categories of those Rating Organizations is contained in Appendix A. Floating Rate/Variable Rate Obligations. The Fund may invest in instruments with floating or variable interest rates. The interest rate on a floating rate obligation is based on a stated prevailing market rate, such as a bank's prime rate, the 90-day U.S. Treasury Bill rate, the rate of return on commercial paper or bank certificates of deposit, or some other standard, and is adjusted automatically each time such market rate is adjusted. The interest rate on a variable rate obligation is also based on a stated prevailing market rate but is adjusted automatically at a specified interval -2- of no more than one year. Some variable rate or floating rate obligations in which the Fund may invest have a demand feature entitling the holder to demand payment at an amount approximately equal to amortized cost or the principal amount thereof plus accrued interest at any time, or at specified intervals not exceeding one year. These notes may or may not be backed by bank letters of credit. Variable rate demand notes may include master demand notes, discussed below. The Manager, on behalf of the Fund, will consider on an ongoing basis the creditworthiness of the issuers of the floating and variable rate obligations in the Fund's portfolio. There is no limit on the amount of the Fund's assets that may be invested in floating rate and variable rate obligations. Repurchase Agreements. In a repurchase transaction, the Fund acquires a security from, and simultaneously resells it to, an approved vendor (a U.S. commercial bank or the U.S. branch of a foreign bank having total domestic assets of at least $1 billion or a broker-dealer with a net capital of at least $50 million and which has been designated a primary dealer in government securities). The resale price exceeds the purchase price by an amount that reflects an agreed-upon interest rate effective for the period during which the repurchase agreement is in effect. The majority of these transactions run from day to day, and delivery pursuant to resale typically will occur within one to five days of the purchase. Repurchase agreements are considered "loans" under the Investment Company Act of 1940, as amended (the "Investment Company Act") collateralized by the underlying security. The Fund's repurchase agreements require that at all times while the repurchase agreement is in effect, the value of the collateral must equal or exceed the repurchase price to fully collateralize the repayment obligation. Additionally, the Manager will impose creditworthiness requirements to confirm that the vendor is financially sound and will continuously monitor the collateral's value. Master Demand Notes. A master demand note is a corporate obligation that permits the investment of fluctuating amounts by the Fund at varying rates of interest pursuant to direct arrangements between the Fund, as lender, and the corporate borrower that issues the note. These notes permit daily changes in the amounts borrowed. The Fund has the right to increase the amount under the note at any time up to the full amount provided by the note agreement, or to decrease the amount, and the borrower may repay up to the full amount of the note at any time without penalty. Because variable amount master demand notes are direct lending arrangements between the lender and the borrower, it is not generally contemplated that such instruments will be traded. There is no secondary market for these notes, although they are redeemable and thus immediately repayable by the borrower at face value, plus accrued interest, at any time. Accordingly, the Fund's right to redeem is dependent on the ability of the borrower to pay principal and interest on demand. In evaluating the master demand note arrangements, the Manager considers the earning power, cash flow, and other liquidity ratios of the issuer. Master demand notes are not typically rated by credit rating agencies. If they are not rated, the Fund may invest in them only if, at the time of an investment, they are Eligible Securities. The Manager will continuously monitor the borrower's financial ability to meet all of its obligations because the Fund's liquidity might be impaired if the borrower were unable to pay principal and interest on demand. Loans of Portfolio Securities. The Fund may lend its portfolio securities to qualified borrowers -3- (other than in repurchase transactions) to attempt to raise the Fund's income for liquidity purposes. Under applicable regulatory requirements (which are subject to change), the loan collateral must, on each business day, at least equal the market value of the loaned securities and must consist of cash, bank letters of credit or U.S. Government securities, or other cash equivalents which the Fund is permitted to purchase. To be acceptable as collateral, letters of credit must obligate a bank to pay amounts demanded by the Fund if the demand meets the terms of the letter. The Fund receives an amount equal to the dividends or interest on loaned securities and also receives one or more of (a) negotiated loan fees, (b) interest on securities used as collateral, or (c) interest on short-term debt securities purchased with such loan collateral; either type of interest may be shared with the borrower. The Fund may also pay reasonable finder's, custodian and administrative fees and will not lend its portfolio securities to any officer, trustee, employee or affiliate of the Fund or the Manager. The terms of the Fund's loans must meet applicable tests under the Internal Revenue Code and permit the Fund to reacquire loaned securities on five business days' notice or in time to vote on any important matter. After any loan, the value of the securities loaned can not exceed 25% of the value of the Fund's total assets. The Fund will not enter into any securities lending agreements having a duration of greater than one year. Any securities received as collateral for a loan must mature in 12 months or less. The Fund presently does not intend to lend its portfolio securities, but if it does, the value of securities loaned will not exceed 5% of the value of the Fund's net assets in the coming year. Illiquid and Restricted Securities. Illiquid securities in which the Fund may invest include issues which only may be redeemed by the issuer upon more than seven days notice or at maturity, repurchase agreements maturing in more than seven days, fixed time deposits subject to withdrawal penalties which mature in more than seven days, and other securities which cannot be sold freely due to legal or contractual restrictions on resale. Contractual restrictions on the resale of illiquid securities might prevent or delay their sale by the Fund at a time when such sale would be desirable. Restricted securities that are not illiquid, in which the Fund may invest, include certain master demand notes redeemable on demand, and short-term corporate debt instruments which are not related to current transactions of the issuer and therefore are not exempt from registration as commercial paper, as described in the Prospectus. Bank Loan Participation Agreements. The Fund may invest in bank loan participation agreements, subject to the investment limitation set forth in "The Fund and Its Investment Policies - Illiquid and Restricted Securities" in the Prospectus. These participation agreements give the Fund an undivided interest in U.S. dollar-denominated loans made by the bank selling the participation interests, in the proportion that the Fund's participation interest bears to the total principal amount of the loan. The selling bank may not have any obligation to the purchaser of the interest other than to pay to it principal and interest on the loan if and when received by the selling bank. The Manager has set certain creditworthiness standards for issuers of loan participations, and monitors their creditworthiness. Participation interests are considered investments in illiquid securities (see "Illiquid and Restricted Securities," above). Their value primarily depends upon the creditworthiness of the borrower, and its ability to pay interest and principal. Borrowers may have difficulty making payments. If a borrower fails to make scheduled interest or principal payments, the Fund could experience a reduction in its income and a decline in the net asset value of its shares. Therefore, the loan must be an obligation of a corporation whose commercial paper or corporate debt -4- obligations the Fund may purchase. The Fund will only purchase participation interests from a bank in whose obligations the Fund may invest, and subject to the restriction described above on investments in illiquid securities. Only loans which mature in one year or less may be the subject of participation interests. Other Investment Restrictions The Fund's most significant investment restrictions are described in the Prospectus. The following investment restrictions are also fundamental policies and, together with the fundamental investment policies and restrictions described in the Prospectus, cannot be changed without the vote of a "majority" of the Fund's outstanding shares. Under the Investment Company Act, such a "majority" vote is defined as the vote of the holders of the lesser of:(i) 67% or more of the shares present or represented by proxy at a shareholder's meeting, if the holders of more than 50% of the outstanding shares are present or represented by proxy, or (ii) more than 50% of the outstanding shares. Under these additional restrictions, the Fund cannot do any of the following: o The Fund cannot invest in commodities or commodity contracts, or invest in interests in oil, gas, or other mineral exploration or development programs; o The Fund cannot invest in real estate; however, the Fund may purchase debt securities issued by companies which invest in real estate or interests therein; o The Fund cannot purchase securities on margin or make short sales of securities; o The Fund cannot invest in or hold securities of any issuer if those officers and directors of the Fund or its adviser who beneficially own individually more than 0.5% of the securities of such issuer together own more than 5% of the securities of such issuer; o The Fund cannot underwrite securities of other companies; o The Fund cannot invest more than 5% of the value of its total assets in securities of companies that have operated less than three years, including the operations of predecessors; and o The Fund cannot invest in securities of other investment companies. Unless the Prospectus or this Statement of Additional Information states that a percentage restriction applies on an ongoing basis, it applies only at the time the Fund makes an investment, and the Fund need not sell securities to meet the percentage limits if the value of the investment increases in proportion to the size of the Fund. For purposes of the Fund's policy not to concentrate described in "Investment Restrictions" in the Prospectus, the Fund has adopted, as a matter of non-fundamental policy, the industry classifications set forth in Appendix C to this Statement of Additional Information. Directors and Officers of the Fund The Fund's Directors and officers and their principal business affiliations and occupations during the past five years are listed below. Sam Freedman became a Director of the Fund on June 27, 1996. All of the directors are also trustees or directors of Centennial America Fund L.P., Centennial Money Market Trust, Centennial Tax Exempt Trust, Centennial Government Trust, Centennial New York Tax Exempt Trust, Centennial California Tax Exempt Trust (the "Centennial Funds"), Oppenheimer Cash Reserves, Oppenheimer Champion Income Fund, Oppenheimer Equity Income Fund, -5- Oppenheimer Limited-Term Government Fund, Oppenheimer Integrity Funds, Oppenheimer International Bond Fund, Oppenheimer High Yield Fund, Oppenheimer Main Street Funds, Inc., Oppenheimer Real Asset Fund, Oppenheimer Strategic Income Fund, Oppenheimer Strategic Income & Growth Fund, Oppenheimer Municipal Fund, Oppenheimer Total Return Fund, Inc., Oppenheimer Variable Account Funds, Panorama Series Funds, Inc., and The New York Tax- Exempt Income Fund, Inc. (together with the Centennial Funds, the "Denver Oppenheimer funds") except for Ms. Macaskill and Mr. Fossel. Ms. Macaskill and Mr. Fossel are Trustees, Directors or Managing General Partners of all the Denver-based Oppenheimer funds except Oppenheimer Integrity Funds, Oppenheimer Strategic Income Fund, Panorama Series Funds, Inc. and Oppenheimer Variable Account Funds. Also, Mr. Fossel is not a trustee of Centennial New York Tax-Exempt Trust nor a managing general partner of Centennial America Fund L.P. Ms. Macaskill is President and Mr. Swain is Chairman and CEO of the Denver Oppenheimer funds. All of the officers except Ms. Warmack, Ms. Wolf and Mr. Zimmer hold similar positions as officers of all the Denver Oppenheimer funds. As of April 7, 1997, the directors and officers of the Fund as a group owned of record or beneficially less than 1% of its outstanding shares. The foregoing statement does not reflect ownership of shares held of record by an employee benefit plan for employees of the Manager (for which plan two of the officers listed below, Ms. Macaskill and Mr. Donohue, are trustees) other than the shares beneficially owned under that plan by the officers of the Fund listed above. ROBERT G. AVIS, Director; Age 65* One North Jefferson Ave., St. Louis, Missouri 63103 Vice Chairman of A.G. Edwards & Sons, Inc. (a broker-dealer) and A.G. Edwards, Inc. (its parent holding company); Chairman of A.G.E. Asset Management and A.G. Edwards Trust Company (its affiliated investment adviser and trust company, respectively). WILLIAM A. BAKER, Director; Age 82 197 Desert Lakes Drive, Palm Springs, California 92264 Management Consultant. CHARLES CONRAD, JR., Director; Age 67* 1501 Quail Street, Newport Beach, CA 92660 Chairman and CEO of Universal Space Lines, Inc. (a space services management company); formerly Vice President of McDonnell Douglas Space Systems Co. and associated with the National Aeronautics and Space Administration. JON S. FOSSEL, Directors, Age 55* P.O. Box 44, Mead Street, Waccabuc, New York 10597 Member of the Board of Governors of the Investment Company Institute (a national trade association of investment companies), Chairman of the Investment Company Institute Education Foundation; formerly Chairman and a director of OppenheimerFunds, Inc. ("OFI"), President and a director of Oppenheimer Acquisition Corp.("OAC"), OFI's parent holding company, and Shareholder Services, Inc .("SSI") and Shareholder Financial Services, Inc. ("SFSI"), transfer agent subsidiaries of OFI. -6- SAM FREEDMAN, Director; Age 56 4975 Lakeshore Drive, Littleton, Colorado 80123 Formerly Chairman and Chief Executive Officer of OppenheimerFunds Services, Chairman, Chief Executive Officer and a director of SSI, Chairman, Chief Executive and Officer and director of SFSI, Vice President and director of OAC and a director of OFI. RAYMOND J. KALINOWSKI, Director; Age 67 44 Portland Drive, St. Louis, Missouri 63131 Director of Wave Technologies International, Inc. (a computer products training company); formerly Vice Chairman and a director of A.G. Edwards, Inc., parent holding company of A.G. Edwards & Sons, Inc. (a broker-dealer), of which he was a Senior Vice President. C. HOWARD KAST, Director; Age 75 2552 East Alameda, Denver, Colorado 80209 Formerly Managing Partner of Deloitte, Haskins & Sells (an accounting firm). ROBERT M. KIRCHNER, Director; Age 75 7500 E. Arapahoe Road, Englewood, Colorado 80112 President of The Kirchner Company (management consultants). BRIDGET A. MACASKILL, President and Director; Age 48* President, Chief Executive Officer and a Director of OFI and HarbourView Asset Management Corporation ("HarbourView"), a subsidiary of OFI; Chairman and a director of SSI and SFSI.; President and a director of OAC and Oppenheimer Partnership Holdings, Inc., a holding company subsidiary of OFI; a director of Oppenheimer Real Asset Management, Inc.; formerly an Executive Vice President of OFI. NED M. STEEL, Director; Age 81 3416 South Race Street, Englewood, Colorado 80110 Chartered Property and Casualty Underwriter; a director of Visiting Nurse Corporation of Colorado; formerly Senior Vice President and a Director of Van Gilder Insurance Corp. (insurance brokers). JAMES C. SWAIN, Chairman, Chief Executive Officer and Director; Age 63* 6803 South Tucson Way, Englewood, Colorado 80112 Vice Chairman of the OFI; formerly President and a director of Centennial Asset Management Corporation (the "Manager"), and Chairman of the Board of SSI. DOROTHY G. WARMACK, Vice President and Portfolio Manager; Age 60 Vice President of OFI and the Manager; an officer of other Oppenheimer funds. CAROL E. WOLF, Vice President and Portfolio Manager; Age 45 Vice President of OFI and the Manager; an officer of other Oppenheimer funds. ARTHUR J. ZIMMER, Vice President and Portfolio Manger; Age 50 Vice President of the OFI and the Manager; an officer of other Oppenheimer funds. -7- ANDREW J. DONOHUE, Vice President and Secretary; Age 46 Executive Vice President, General Counsel and a Director of OFI, OppenheimerFunds Distributor, Inc. , HarbourView, SSI, SFSI, Oppenheimer Partnership Holdings, Inc. and MultiSource Services, Inc. (a broker-dealer); President and a director of the Manager; President and a director of Oppenheimer Real Asset Management, Inc.; General Counsel of OAC; an officer of other Oppenheimer funds. GEORGE C. BOWEN, Vice President, Treasurer and Assistant Secretary; Age 60 6803 Tucson Way, Englewood, Colorado 80112 Senior Vice President and Treasurer of OFI; Vice President and Treasurer of OppenheimerFunds Distributor, Inc. and HarbourView; Senior Vice President, Treasurer, Assistant Secretary and a director of the Manager; President, Treasurer and a director of Centennial Capital Corporation; Senior Vice President, Treasurer and Secretary of SSI; Vice President, Treasurer and Secretary of SFSI; Treasurer of OAC; Treasurer of Oppenheimer Partnership Holdings, Inc.; Vice President and Treasurer of Oppenheimer Real Asset Management, Inc.; Chief Executive Officer, Treasurer and a director of MultiSource Services, Inc. (a broker-dealer); an officer of other Oppenheimer funds. ROBERT G. ZACK, Assistant Secretary; Age 48 Senior Vice President and Associate General Counsel of OFI, Assistant Secretary of SSI and SFSI; an officer of other Oppenheimer funds. ROBERT J. BISHOP, Assistant Treasurer; Age 38 6803 Tucson Way, Englewood, Colorado 80112 Vice President of the OFI /Mutual Fund Accounting; an officer of other Oppenheimer funds; formerly a Fund Controller for OFI. SCOTT T. FARRAR, Assistant Treasurer; Age 31 6803 Tucson Way, Englewood, Colorado 80112 Vice President of OFI/Mutual Fund Accounting; an officer of other Oppenheimer funds; formerly a Fund Controller for OFI. - ----------------------- * A director who is an "interested person" of the Fund as defined in the Investment Company Act . Remuneration of Directors. The officers of the Fund and certain directors of the Fund (Ms. Macaskill and Mr. Swain) who are affiliated with the Manager receive no salary or fees from the Fund. Mr. Fossel did not receive any salary or fees from the Fund prior to January 1, 1997. The remaining directors of the Fund received the total amounts shown below. Mr. Freedman received no compensation from the Fund before June 27, 1996, the date he became a director. The compensation from the Fund was paid during fiscal year ended December 31, 1996. The compensation from the Denver-based Oppenheimer funds includes compensation received as a director, trustee, managing partner or member of a committee of the Board of those funds during calendar year 1996. -8-
Total Compensation Aggregate From All Compensation Denver-based Name Position from Fund Oppenheimer funds Robert G. Avis Director $3,409 $58,003 William A. Baker Audit and Review $4,685 $79,715 Committee, Chairman and Director Charles Conrad, Jr. Audit and Review $4,391 $74,717 Committee Member and Director Sam Freedman Director $1,734 $29,502 Raymond J. Kalinowski Risk Oversight Committee Member, Director $4,359 $74,173 C. Howard Kast Risk Oversight Committee Member, Director $4,359 $74,173 Robert M. Kirchner Audit and Review $4,391 $74,717 Committee and Director Ned M. Steel Director $3,409 $58,003
Major Shareholders. As of April 7, 1997, the only person known by the management of the Fund to be the record or beneficial owner of 5% or more of the outstanding shares of the Fund was A.G. Edwards & Sons, Inc. ("Edwards"), One North Jefferson Street, St. Louis, MO 63103, which was the record owner of 3,475,220,498.760 shares (approximately 98.91% of the shares outstanding). The Fund has been informed that the shares held of record by Edwards were owned for the benefit of its brokerage clients. The Manager and Its Affiliates The Manager is a wholly-owned subsidiary of OppenheimerFunds, Inc. ("OFI"), which is wholly-owned by Oppenheimer Acquisition Corporation ("OAC"), a holding company controlled by Massachusetts Mutual Life Insurance Company. OAC is also owned by certain of OFI's directors and officers, some of whom may also serve as officers of the Fund, and two of whom (Ms. Macaskill and Mr. Swain) serve as Directors of the Fund. -9- Investment Advisory Agreement. The Manager supervises the investment operations of the Fund and the composition of its portfolio and furnishes the Fund advice and recommendations with respect to investments, investment policies, and the purchase and sale of securities pursuant to an investment advisory agreement (the "Agreement") with the Fund, described in "Management of the Fund" in the Prospectus. During the Fund's fiscal years ended December 31, 1996, 1995 and 1994, the Fund paid the Manager management fees of $12,933,033, $12,746,352 and $11,918,801 respectively, pursuant to the Agreement. The management fees for the fiscal year ended December 31, 1996 are net of a voluntary expense assumption by the Manager which reduced the management fees for that year in an amount of $441,801. In the absence of such voluntary expense assumption, the management fees payable by the Fund would have been $13,374,834. The Agreement requires the Manager, at its expense, to provide the Fund with adequate office space, facilities and equipment and to provide and supervise the activities of all administrative and clerical personnel required to provide effective administration for the Fund, including the compilation and maintenance of records with respect to its operations, the preparation and filing of specified reports, and the composition of proxy materials and registration statements for continuous public sale of shares of the Fund. Expenses not expressly assumed by the Manager under the Agreement or as Distributor of the shares of the Fund are paid by the Fund. The Agreement lists examples of expenses paid by the Fund, the major categories of which relate to interest, taxes, fees to unaffiliated directors, legal, bookkeeping and audit expenses, brokerage, custodian and transfer agent expenses, stock issuance costs, certain printing costs (excluding the cost of printing prospectuses for sales materials), registration fees, and non-recurring expenses, including litigation. The Agreement provides that the Manager will reimburse the Fund for annual expenses of the Fund (excluding brokerage commission, taxes, interest and extraordinary expenses such as litigation) which exceed the most stringent limits prescribed by any state in which the Fund's shares are offered for sale. Due to changes in federal securities laws, such state regulations no longer apply. During the Fund's last fiscal year, the Fund's expenses did not exceed the most stringent state regulatory limit and the voluntary undertaking was not invoked. Independently of the Agreement with the Fund, effective December 1, 1994, the Manager has voluntarily agreed to assume the Fund's expenses to the level needed to enable the Fund's 7-day yield (computed in accordance with procedures specified pursuant to regulations adopted under the Investment Company Act) to at least equal the 7-day yield of Centennial Money Market Trust. The Manager reserves the right to modify or terminate this voluntary undertaking at any time without prior notice to investors or shareholders. Prior to December 1, 1994, the Manager voluntarily agreed to waive a portion of the management fee otherwise payable to it by the Fund to the extent necessary to ensure that the annual management fee of the Fund did not exceed 0.35% of the Fund's average net assets. The Manager assumes no responsibility under the Agreement other than that which is imposed by law, and shall not be responsible for any action of the Board of Directors of the Fund in following or declining to follow any advice or recommendations of the Manager. The Manager shall not be liable for any error of judgment or mistake of law, or for any loss suffered by the Fund in connection with matters to which the Agreement relates, except a loss resulting by reason of the -10- Manager's willful misfeasance, bad faith or gross negligence in the performance of its duties, or its reckless disregard of its obligations and duties, under the Agreement. The Agreement permits the Manager to act as investment adviser for any other person, firm or corporation. Custodian. The Custodian's responsibilities include safeguarding and controlling the Fund's portfolio securities and handling the delivery of portfolio securities to and from the Fund. The Manager has represented to the Fund that its banking relationships between the Manager and the Custodian have been and will continue to be unrelated to and unaffected by the relationship between the Fund and the Custodian. It will be the practice of the Fund to deal with the Custodian in a manner uninfluenced by any banking relationship the Custodian may have with the Manager or its affiliates. Transfer Agent. Shareholder Services, Inc. as the Transfer Agent, is responsible for maintaining the Fund's shareholder registry and shareholder accounting records, and for shareholder servicing and administrative functions. Distributor. Under the General Distributor's Agreement between the Fund and the Distributor, the Distributor is the Fund's principal underwriter in the continuous public offering of the Fund's shares but is not obligated to sell a specific number of shares. Expenses normally attributable to sales (other than those paid under the Service Plan), including advertising and the cost of printing and mailing prospectuses (other than those furnished to existing shareholders), are borne by the Distributor. Independent Auditors. The independent auditors of the Fund audit the Fund's financial statements and perform other related audit services. They also act as auditors for the Manager, OppenheimerFunds, Inc., the Manager's immediate parent, as well as for certain other funds advised by the Manager and OppenheimerFunds, Inc. Portfolio Transactions. Portfolio decisions are based upon the recommendations and judgment of the Manager subject to the overall authority of the Board of Directors. As most purchases made by the Fund are principal transactions at net prices, the Fund incurs little or no brokerage costs. Purchases of portfolio securities from underwriters include a commission or concession paid by the issuer to the underwriter, and purchases from dealers include a spread between the bid and asked price. The Fund's policy of investing in short-term debt securities with maturities of less than one year results in high portfolio turnover. However, since brokerage commissions, if any, are small and securities are usually held to maturity, high turnover does not have an appreciable adverse effect upon the net asset value or income of the Fund. The Fund seeks to obtain prompt and reliable execution of orders at the most favorable net price. If brokers are used for portfolio transactions, transactions may be directed to brokers furnishing execution and research services deemed by the Manager to be useful or valuable to the performance of its investment advisory functions for the Fund. Research information may be in written form or through direct contact with individuals and includes information on particular companies and industries as well as market, economic or institutional activity areas. It serves to broaden the scope and supplement the research activities of the Manager, to make available -11- additional views for consideration and comparisons, and to enable the Manager to obtain market information for the valuation of securities held in the Fund's portfolio. The Fund does not direct the handling of purchases or sales of portfolio securities, whether on a principal or agency basis, to brokers for selling shares of the Fund. No portfolio transactions are handled by brokers which are affiliated with the Fund or the Manager. Performance of the Fund Yield Information. The Fund's current yield is calculated for a seven-day period of time, determined in accordance with regulations adopted under the Investment Company Act as follows. First, a base period return is calculated for the seven-day period by determining the net change in the value of a hypothetical pre-existing account having one share at the beginning of the seven day period. The change includes dividends declared on the original share and dividends declared on any shares purchased with dividends on that share, but such dividends are adjusted to exclude any realized or unrealized capital gains or losses affecting the dividends declared. Next, the base period return is multiplied by 365/7 to obtain the current yield to the nearest hundredth of one percent. The compounded effective yield for a seven-day period is calculated by (a) adding 1 to the base period return (obtained as described above), (b) raising the sum to a power equal to 365 divided by 7, and (c) subtracting 1 from the result. For the seven days ended December 31, 1996, the Fund's yield was 4.86% and its compounded effective yield was 4.98%. The yield as calculated above may vary for accounts less than approximately $100 in value due to the effect of rounding off each daily dividend to the nearest full cent. Since the calculation of yield under either procedure described above does not take into consideration any realized or unrealized gains or losses on the Fund's portfolio securities which may affect dividends, the return on dividends declared during a period may not be the same on an annualized basis as the yield for that period. Yield information may be useful to investors in reviewing the Fund's performance. The Fund may make comparisons between its yield and that of other investments, by citing various indices such as The Bank Rate Monitor National Index (provided by Bank Rate Monitor TM), which measures the average rate paid on bank money market accounts, NOW accounts and certificates of deposit by the 100 largest banks and thrift institutions in the top ten metropolitan areas. However, a number of factors should be considered before using yield information as a basis for comparison with other investments. An investment in the Fund is not insured. Its yield is not guaranteed and normally will fluctuate on a daily basis. The yield for any given past period is not an indication or representation by the Fund of future yields or rates of return on its shares. The Fund's yield is affected by portfolio quality, portfolio maturity, type of instruments held and operating expenses. When comparing the Fund's yield with that of other investments, investors should understand that certain other investment alternatives such as certificates of deposit, U.S. government securities, money market instruments or bank accounts may provide fixed yields or yields that may vary above a stated minimum, and also that bank accounts may be insured. Certain types of bank accounts may not pay interest when the balance falls below a specified level and may limit the number of withdrawals by check per month. -12- Service Plan The Fund has adopted a service plan (the "Plan") under Rule 12b-1 of the Investment Company Act pursuant to which the Fund is permitted to reimburse the Distributor for a portion of its costs incurred in connection with personal service and maintenance of shareholder accounts as described in the Prospectus. Under the Plan, the Fund's Distributor is authorized to reimburse certain securities dealers and other financial institutions and organizations ("Recipients") in connection with the personal service and the maintenance of shareholder accounts that hold Fund shares. Payment is made monthly or quarterly (i) at the annual rate of 0.20 of 1.0% (or such lesser amount as the disinterested Directors may determine) of the average net asset value of the Fund's shares owned beneficially or of record during the month or quarter by the Recipient or its customers, or (ii) in an amount equal to the Recipient's total cost during the month of rendering personal service (including reasonable allocations of overhead), whichever is less. No payment will be made to a Recipient for any month during which the average net asset value of Fund shares held by the Recipient and its customers was less than $3 million. Although no payments are retained by the Distributor or the Manager, Recipients which are affiliates of the Manager may receive payments. Payments by the Fund under the Plan for the fiscal year ended December 31, 1996 totaled $7,123,026, all of which was paid to Edwards. Under the Plan, a Recipient must certify monthly or quarterly that its expenses for providing such services do not exceed its administrative and sales-related costs. A Recipient is required to reimburse the Fund if the aggregate payments it receives during the year exceed its costs as so certified. The Plan may continue in effect for a period of more than one year from the date of its execution only so long as continuance is approved at least annually by the Board of Directors of the Fund, including a majority of the disinterested Directors, by a vote cast in person at a meeting called for the purpose of voting on that Agreement. The Plan automatically terminates if (i) the Fund terminates the Plan, or (ii) a majority of the disinterested Directors or the holders of a majority of the outstanding voting securities of the Fund vote to terminate the Agreement. The Plan provides that, as long as the Plan remains in effect, the selection and nomination of Directors of the Fund who are not "interested persons" of the Fund shall be committed to the discretion of the Directors then in office who are not "interested persons" of the Fund. However, others may participate in such selection and nomination provided that the final decision is approved by a majority of the incumbent Independent Directors. Finally, the Plan cannot be amended without shareholder approval as set forth above to increase materially the amount of payments to be made and all material amendments are required to be approved by the vote of the Board of Directors of the Fund, including a majority of the disinterested Directors, cast in person at a meeting called for that purpose. ABOUT YOUR ACCOUNT Purchase, Redemption and Pricing of Shares -13- Determination of Net Asset Value Per Share. The net asset value per share of the Fund's shares is determined twice each day as of 12:00 Noon and as of the close of The New York Stock Exchange (the "Exchange") which is normally 4:00 P.M., but may be earlier on some days, each day the Exchange is open (a "regular business day"), (all references to time mean New York time) by dividing the Fund's net assets (the total value of the Fund's portfolio securities, cash and other assets less all liabilities) by the total number of shares outstanding. The Exchange's most recent annual holiday schedule states that it will close New Year's Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The Exchange may also close on other days. The Fund will seek to maintain a net asset value of $1.00 per share for purchases and redemptions. There can be no assurance that it will do so. The Fund operates under Rule 2a-7 under which the Fund may use the amortized cost method of valuing its shares. The amortized cost method values a security initially at its cost and thereafter assumes a constant amortization of any market discount or premium, regardless of the impact of fluctuating interest rates on the market value of the security. The method does not take into account unrealized capital gains or losses. The Board of Directors has established procedures for the valuation of the Fund's securities, which provide that money market debt securities that had a maturity of less than 397 days when issued that have a remaining maturity of 60 days or less are valued at cost, adjusted for amortization of premiums and accretion of discounts. Redemptions. The Fund's Board of Directors has the right, in conformity with applicable law, to cause the involuntary redemption of the shares held in any account if the aggregate net asset value of such shares is less than $500 or such lesser amount as the Board may decide. Should the Board elect to exercise this right, it will establish the terms of any notice of such redemption required to be provided to the shareholder under the Investment Company Act or Maryland law, including any provision the Board may establish to enable the shareholder to increase the amount of the investment to avoid involuntary redemption. Expedited Redemption Procedures. Under the Expedited Redemption Procedure available to direct shareholders of the Fund, as discussed in the Prospectus, the wiring of redemption proceeds may be delayed if the Fund's Custodian bank is not open for business on a day that the Fund would normally authorize the wire to be made, which is usually the same day for redemptions prior to 12:00 Noon, and the Fund's next regular business day for redemptions between 12:00 Noon and the close of the Exchange, which is normally 4:00 P.M., but may be earlier on some days. In those circumstances, the wire will not be transmitted until the next bank business day on which the Fund is open for business and no dividends will be paid on the proceeds of redeemed shares waiting transfer by wire. Dividends and Taxes Tax Status of the Fund's Dividends and Distributions. The Federal tax treatment of the Fund's dividends and distributions to shareholders is explained in the Prospectus under the caption "Dividends, Distributions and Taxes." Under the Internal Revenue Code, the Fund must distribute -14- by December 31 each year 98% of its taxable investment income earned from January 1 through December 31 of that year, and 98% of its capital gains realized from the prior November 1 through October 31 of the current year, or else the Fund must pay an excise tax on the amounts not distributed. While it is presently anticipated that the Fund's distributions will meet those requirements, the Fund's Board and Manager might determine in a particular year that it might be in the best interest of the Fund's shareholders not to distribute income or capital gains at the mandated levels and to pay the excise tax on the undistributed amounts, which would reduce the amount available for distribution to shareholders. Dividend Reinvestment in Another Fund. Direct shareholders of the Fund may elect to reinvest all dividends and/or distributions in Class A shares of any of the other "Eligible Funds" listed below at net asset value without sales charge. To elect this option, a shareholder must notify the Transfer Agent in writing, and either must have an existing account in the fund selected for reinvestment or must obtain a prospectus for that fund and an application from the Transfer Agent to establish an account. The investment will be made at the net asset value per share next determined on the payable date of the dividend or distribution. Eligible Funds: Limited Term New York Municipal Fund* Oppenheimer Bond Fund Oppenheimer Bond Fund for Growth Oppenheimer California Municipal Fund Oppenheimer Capital Appreciation Fund Oppenheimer Champion Income Fund Oppenheimer Developing Markets Fund Oppenheimer Disciplined Allocation Fund Oppenheimer Disciplined Value Fund Oppenheimer Discovery Fund Oppenheimer Enterprise Fund Oppenheimer Equity Income Fund Oppenheimer Florida Municipal Fund Oppenheimer Fund Oppenheimer Global Emerging Growth Fund Oppenheimer Global Fund Oppenheimer Global Growth & Income Fund Oppenheimer Gold & Special Minerals Fund Oppenheimer Growth Fund Oppenheimer High Yield Fund Oppenheimer Insured Municipal Fund Oppenheimer Intermediate Municipal Fund Oppenheimer International Bond Fund Oppenheimer International Growth Fund Oppenheimer LifeSpan Balanced Fund Oppenheimer LifeSpan Growth Fund -15- Oppenheimer LifeSpan Income Fund Oppenheimer Limited-Term Government Fund Oppenheimer Main Street Income & Growth Fund Oppenheimer Main Street California Municipal Fund Oppenheimer Multiple Strategies Fund Oppenheimer Municipal Bond Fund Oppenheimer New Jersey Municipal Fund Oppenheimer New York Municipal Fund Oppenheimer Pennsylvania Municipal Fund Oppenheimer Quest Capital Value Fund, Inc. Oppenheimer Quest Global Value Fund, Inc. Oppenheimer Quest Growth & Income Value Fund Oppenheimer Quest Officers Value Fund Oppenheimer Quest Opportunity Value Fund Oppenheimer Quest Small Cap Value Fund Oppenheimer Quest Value Fund, Inc. Oppenheimer Real Asset Fund Oppenheimer Strategic Income & Growth Fund Oppenheimer Strategic Income Fund Oppenheimer Total Return Fund, Inc. Oppenheimer U.S. Government Trust Oppenheimer Value Stock Fund Oppenheimer World Bond Fund Rochester Fund Municipals The New York Tax Exempt Income Fund, Inc. the following "Money Market Funds": Centennial America Fund L.P. Centennial California Tax Exempt Trust Centennial Government Trust Centennial Money Market Trust Centennial New York Tax Exempt Trust Centennial Tax Exempt Trust Oppenheimer Cash Reserves Oppenheimer Money Market Fund, Inc. There is an initial sales charge on the purchase of Class A shares of each Eligible Fund except the Money Market Funds (under certain circumstances, described in the Prospectus, redemption proceeds of Money Market Fund shares may be subject to a CDSC). *Shares of the Fund are not exchangeable for shares of Limited Term New York Municipal Fund prior to May 1, 1997. -16- INDEPENDENT AUDITORS' REPORT Daily Cash Accumulation Fund, Inc. The Board of Directors and Shareholders of Daily Cash Accumulation Fund, Inc.: We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Daily Cash Accumulation Fund, Inc., as of December 31, 1996, the related statement of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1996 and 1995, and the financial highlights for the period January 1, 1992 to December 31, 1996. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 1996 by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of Daily Cash Accumulation Fund, Inc., at December 31, 1996, the results of its operations, the changes in its net assets, and the financial highlights for the respective stated periods, in conformity with generally accepted accounting principles. /s/ Deloitte & Touche LLP - -------------------------------------- DELOITTE & TOUCHE LLP Denver, Colorado January 22, 1997 STATEMENT OF INVESTMENTS December 31, 1996 Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- BANKERS' ACCEPTANCES-0.1% First National Bank of Boston, 5.30%, 5/2/97 (Cost $4,910,931) ....................... $ 5,000,000 $ 4,910,931 ----------- CERTIFICATES OF DEPOSIT-1.6% DOMESTIC CERTIFICATES OF DEPOSIT-0.4% LaSalle National Bank: 5.51%, 4/4/97 ................................ 8,000,000 8,000,000 5.55%, 2/11/97 ............................... 7,000,000 7,000,000 ----------- 15,000,000 ----------- YANKEE CERTIFICATES OF DEPOSIT-1.2% Societe Generale North America, Inc.: 5.45%, 2/10/97 ............................... 8,000,000 8,000,087 5.50%, 4/21/97 ............................... 5,000,000 5,000,000 5.55%, 2/6/97 ................................ 10,000,000 10,000,000 5.62%, 3/25/97 ............................... 8,000,000 8,001,957 5.92%, 9/17/97 ............................... 10,000,000 10,020,031 ----------- 41,022,075 ----------- Total Certificates of Deposit (Cost $56,022,075) 56,022,075 ----------- DIRECT BANK OBLIGATIONS-4.2% ABN Amro Bank Canada, 5.43%, 1/10/97................ 10,000,000 9,986,425 Bayerische Vereinsbank AG, 5.35%, 4/10/97........... 8,150,000 8,030,093 FCC National Bank, 5.55%, 2/14/97................... 10,000,000 10,000,000 First National Bank of Boston: 5.44%, 1/10/97 ................................... 5,000,000 5,000,000 5.44%, 1/13/97 ................................... 5,000,000 5,000,000 5.47%, 2/12/97 ................................... 10,000,000 10,000,000 5.47%, 2/21/97 ................................... 10,000,000 10,000,000 5.47%, 4/3/97 .................................... 7,000,000 7,000,000 5.50%, 3/14/97 ................................... 10,000,000 10,000,000 5.50%, 3/17/97 ................................... 15,000,000 15,000,000 5.50%, 4/4/97 .................................... 5,000,000 5,000,000 Huntington National Bank:........................... 5.35%, 1/2/97 .................................... 10,000,000 10,000,000 5.35%, 1/8/97 .................................... 7,000,000 7,000,000 5.53%, 2/3/97 .................................... 15,000,000 15,001,002
3 STATEMENT OF INVESTMENTS December 31, 1996 (continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- DIRECT BANK OBLIGATIONS-4.2% (CONTINUED) National Westminster Bank of Canada: 5.36%, 4/7/97 ................................. $ 7,000,000 $ 6,899,946 5.40%, 2/18/97 ................................ 5,000,000 4,964,000 Societe Generale North America, Inc.: 5.30%, 4/11/97 ................................ 5,000,000 4,926,389 5.38%, 2/7/97 ................................. 7,000,000 6,961,294 ------------ Total Direct Bank Obligations (Cost $150,769,149) 150,769,149 ------------ LETTERS OF CREDIT-6.0% Bank of America NT & SA, guaranteeing commercial paper of: Formosa Plastics Corp., USA-Series A, 5.34%, 3/21/97 5,000,000 4,941,408 Hyundai Motor Finance Co., 5.37%, 4/21/97 5,000,000 4,917,958 Bank One, Cleveland, guaranteeing commercial paper of: Capital One Funding Corp.-Series 1995F, 5.85%, 1/2/97(1) 10,650,000 10,650,000 Capital One Funding Corp.-Series 1995F, 5.85%, 1/2/97(1)(2) 8,900,000 8,900,000 Barclays Bank PLC, guaranteeing commercial paper of: Banco Bradesco S.A.-Grand Cayman Branch: Series A, 5.31%, 4/28/97 ............ 11,000,000 10,810,167 Series A, 5.35%, 4/18/97 ............ 5,000,000 4,920,493 Series B, 5.33%, 5/20/97 ............ 5,000,000 4,897,101 Banco Real S.A., Grand Cayman Branch: Series A, 5.32%, 4/22/97 ............ 5,000,000 4,917,983 Series A, 5.37%, 4/21/97 ............ 10,000,000 9,835,917 Petroleo Brasileiro, S.A.-Petrobras II: Series C, 5.35%, 4/1/97 ............. 5,000,000 4,933,125 Series C, 5.38%, 4/3/97 ............. 5,000,000 4,931,256 Petroleo Brasileiro, S.A.-Petrobras: Series A, 5.30%, 5/5/97 ............. 5,000,000 4,908,722 Series A, 5.31%, 5/6/97 ............. 15,000,000 14,723,438 Series A, 5.31%, 5/7/97 ............. 5,000,000 4,907,075 Series A, 5.37%, 4/7/97 ............. 5,000,000 4,928,400 Series B, 5.32%, 6/3/97 ............. 5,000,000 4,886,950 Series B, 5.40%, 4/9/97 ............. 10,000,000 9,853,000
4 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ----------- ----------- LETTERS OF CREDIT-6.0% (CONTINUED) Bayerische Vereinsbank AG, guaranteeing commercial paper of: Banco Rio de la Plata S.A.: Series A, 5.40%, 1/21/97 ............................ $ 5,000,000 $4,985,000 Series A, 5.43%, 1/17/97 ............................ 10,000,000 9,975,867 Series A, 5.40%, 1/22/97 ............................ 5,000,000 4,984,250 Galicia Funding Corp.: Series A, 5.36%, 3/3/97(3)........................... 5,000,000 4,954,589 Series B, 5.35%, 3/3/97(3)........................... 5,000,000 4,954,674 Series B, 5.45%, 3/4/97(3)........................... 10,000,000 9,907,000 Credit Suisse, guaranteeing commercial paper of: COSCO (Cayman) Co., Ltd., 5.38%, 3/14/97............. 15,000,000 14,838,600 Societe Generale, guaranteeing commercial paper of: Girsa Funding Corp., 5.32%, 4/3/97(3)................ 9,000,000 8,877,640 Nacional Financiera, SNC: Series A, 5.31%, 2/24/97........................... 20,000,000 19,840,700 Series A, 5.44%, 1/8/97............................ 5,000,000 4,994,711 Series A, 5.44%, 1/9/97............................ 5,000,000 4,993,956 Series B, 5.33%, 3/3/97............................ 5,000,000 4,954,843 ----------- Total Letters of Credit (Cost $217,124,823)............ 217,124,823 ----------- SHORT-TERM NOTES-86.7% AUTOMOTIVE-0.8% BMW U.S. Capital Corp.: 5.31%, 2/24/97 ................................... 10,000,000 9,920,350 5.32%, 2/20/97 ................................... 20,000,000 19,852,222 ----------- 29,772,572 ----------- BANKS-0.7% Bankers Trust Co., New York, 5.35%, 11/26/97(1)............ 10,000,000 9,993,799 CoreStates Capital Corp.: 5.36%, 6/27/97 .......................................... 5,000,000 4,868,233 5.47%, 7/14/97(1)........................................ 5,000,000 5,000,000 5.70%, 6/27/97(1)........................................ 5,000,000 5,000,000 ----------- 24,862,032 -----------
5 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- BEVERAGES-3.2% Coca-Cola Enterprises, Inc.: 5.31%, 3/19/97(3) .......................................... $12,000,000 $11,863,453 5.31%, 3/7/97(3) ........................................... 27,000,000 26,739,910 5.32%, 2/26/97(3) .......................................... 15,000,000 14,875,867 5.32%, 2/27/97(3) .......................................... 10,000,000 9,915,767 5.33%, 2/19/97(3) .......................................... 15,000,000 14,891,179 5.34%, 1/31/97(3) .......................................... 17,000,000 16,924,350 5.35%, 3/11/97(3) .......................................... 5,000,000 4,948,729 5.35%, 3/18/97(3) .......................................... 8,000,000 7,909,644 5.35%, 3/24/97(3) .......................................... 7,000,000 6,914,697 ----------- 114,983,596 ----------- BROKER/DEALERS-12.5% CS First Boston, Inc.: 5.31%, 1/30/97 ............................................ 7,000,000 6,970,057 5.31%, 2/20/97 ............................................ 15,000,000 14,889,375 5.33%, 2/13/97(3) ......................................... 25,000,000 24,840,661 5.35%, 2/12/97(3) ......................................... 10,000,000 9,937,642 5.38%, 3/4/97(1)(4) ....................................... 10,000,000 10,000,000 5.58%, 1/21/97(1)(4) ...................................... 10,000,000 10,000,000 Goldman Sachs Group, L.P.: 5.31%, 3/21/97 ............................................ 23,000,000 22,731,992 5.31%, 5/5/97 ............................................. 15,000,000 14,725,650 5.38%, 3/14/97 ............................................ 10,000,000 9,892,400 5.42%, 1/17/97 ............................................ 10,000,000 9,975,911 5.43%, 1/13/97 ............................................ 30,000,000 29,945,700 5.50%, 4/4/97 ............................................. 15,000,000 14,786,875 8.25%, 1/2/97 ............................................. 52,550,000 52,539,173 Merrill Lynch & Co., Inc.: 5.31%, 2/28/97 ............................................ 5,000,000 4,957,225 5.33%, 1/2/97 ............................................. 20,000,000 19,997,036 5.33%, 1/24/97 ............................................ 20,000,000 19,931,894 5.33%, 3/10/97 ............................................ 20,000,000 19,798,644 5.35%, 1/28/97 ............................................ 5,000,000 4,979,937 5.40%, 1/31/97(1) ......................................... 20,000,000 20,000,000 5.40%, 2/10/97 ............................................ 12,000,000 11,928,000 5.42%, 1/23/97 ............................................ 35,000,000 34,884,897 5.42%, 12/19/97(1) ........................................ 15,000,000 14,999,534 5.43%, 10/24/97(1) ........................................ 10,000,000 9,998,378 5.44%, 1/21/97 ............................................ 10,000,000 9,969,778
6 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- BROKER/DEALERS-12.5% (CONTINUED) Morgan Stanley Group, Inc.: 5.26%, 6/27/97(1) ...................................... $36,815,000 $ 36,815,000 5.41%, 2/3/97 .......................................... 10,000,000 9,950,408 ----------- 449,446,167 ----------- BUILDING MATERIALS-0.1% Compagnie de Saint-Gobain, 5.38%, 4/23/97.................. 5,000,000 4,916,311 ----------- CHEMICALS-0.2% Monsanto Co., 5.30%, 1/27/97(3)............................ 6,900,000 6,873,588 ----------- COMMERCIAL FINANCE-12.3% CIT Group Holdings, Inc.: 5.31%, 1/24/97 .......................................... 15,000,000 14,949,112 5.33%, 11/20/97(1) ...................................... 15,000,000 14,989,942 5.35%, 5/1/97(1) ........................................ 10,000,000 9,996,244 5.35%, 6/11/97(1) ....................................... 10,000,000 9,994,762 5.37%, 9/17/97(1) ....................................... 20,000,000 19,989,710 5.67%, 3/1/98(1) ........................................ 38,500,000 38,500,000 Countrywide Home Loans: 5.33%, 1/23/97 .......................................... 24,000,000 23,921,827 5.33%, 2/19/97 .......................................... 5,000,000 4,963,726 5.33%, 3/3/97 ........................................... 5,000,000 4,954,843 5.34%, 1/8/97 ........................................... 9,000,000 8,990,655 5.34%, 3/12/97 .......................................... 5,000,000 4,948,083 5.36%, 3/5/97 ........................................... 16,000,000 15,849,920 5.37%, 3/4/97 ........................................... 10,000,000 9,907,517 FINOVA Capital Corp.: 5.37%, 2/18/97 .......................................... 3,000,000 2,978,520 5.37%, 2/24/97 .......................................... 10,000,000 9,919,450 5.37%, 2/28/97 .......................................... 7,000,000 6,939,326 5.38%, 1/7/97 ........................................... 8,000,000 7,992,827 5.38%, 2/20/97 .......................................... 5,000,000 4,962,639 5.40%, 1/15/97 .......................................... 5,000,000 4,989,500 5.40%, 2/27/97 .......................................... 32,000,000 31,727,682 5.43%, 2/26/97 .......................................... 20,000,000 19,831,067 5.49%, 2/5/97 ........................................... 5,000,000 4,973,312 5.53%, 1/24/97 .......................................... 5,000,000 4,982,335 5.68%, 1/17/97 .......................................... 3,000,000 2,992,427 6.06%, 2/21/97(1) ....................................... 15,000,000 15,000,000
7 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- COMMERCIAL FINANCE-12.3% (CONTINUED) Heller Financial, Inc.: 5.41%, 3/17/97 ............................................. $20,000,000 $19,774,479 5.42%, 2/6/97 .............................................. 7,000,000 6,962,060 5.43%, 1/14/97 ............................................. 15,000,000 14,970,587 5.45%, 3/20/97 ............................................. 5,000,000 4,940,958 5.45%, 3/21/97 ............................................. 2,000,000 1,976,081 5.46%, 10/1/97(1) .......................................... 20,000,000 19,997,008 5.46%, 10/10/97(1) ......................................... 13,000,000 12,997,991 5.55%, 4/10/97 ............................................. 7,000,000 6,893,162 5.55%, 4/2/97 .............................................. 9,500,000 9,366,723 5.59%, 12/18/97(1) ......................................... 15,000,000 15,000,000 5.66%, 1/15/97 ............................................. 10,000,000 10,000,518 5.69%, 3/28/97(1) .......................................... 20,000,000 20,001,439 ----------- 442,126,432 ----------- COMPUTER SOFTWARE-0.3% First Data Corp.: 5.37%, 6/10/97 ............................................ 5,000,000 4,880,667 5.40%, 2/25/97 ............................................ 5,000,000 4,958,750 ----------- 9,839,417 ----------- CONGLOMERATES-1.0% Mitsubishi International Corp.: 5.34%, 1/8/97 ............................................... 9,500,000 9,490,136 5.43%, 2/7/97 ............................................... 19,000,000 18,893,964 5.44%, 2/14/97 .............................................. 7,800,000 7,748,139 ---------- 36,132,239 ----------- CONSUMER FINANCE-3.0% American Express Corp., 5.32%, 1/3/97 ....................... 15,000,000 14,995,567 Island Finance Puerto Rico, Inc.: 5.32%, 3/11/97 .............................................. 13,700,000 13,560,306 5.34%, 3/24/97 .............................................. 5,100,000 5,037,967 5.36%, 1/15/97 .............................................. 8,000,000 7,983,324 5.39%, 3/25/97 .............................................. 16,500,000 16,294,955 5.44%, 3/20/97 .............................................. 10,000,000 9,882,133
8 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- CONSUMER FINANCE-3.0% (CONTINUED) Sears Roebuck Acceptance Corp.: 5.31%, 3/3/97 ........................................... $25,000,000 $ 24,775,063 5.32%, 3/31/97 .......................................... 9,000,000 8,881,630 5.43%, 1/16/97 .......................................... 5,000,000 4,988,688 ------------ 106,399,633 ------------ DIVERSIFIED FINANCIAL-14.5% Associates Corp. of North America, 7.28%, 1/2/97 .......... 75,000,000 74,984,833 Ford Motor Credit Co.: 5.32%, 1/10/97 .......................................... 15,000,000 14,980,050 5.32%, 1/6/97 ........................................... 24,300,000 24,282,045 5.32%, 1/8/97 ........................................... 13,600,000 13,585,932 5.32%, 1/9/97 ........................................... 15,000,000 14,982,267 5.40%, 1/2/97 ........................................... 75,000,000 74,985,167 5.57%, 5/12/97(1) ....................................... 15,000,000 15,001,935 General Electric Capital Corp.: 5.31%, 1/15/97 .......................................... 15,000,000 14,969,025 5.50%, 1/31/97 .......................................... 5,000,000 4,977,083 General Electric Capital Services, 7.12%, 1/2/97 .......... 78,000,000 77,984,573 General Motors Acceptance Corp.: 5.35%, 1/8/97 ........................................... 21,000,000 20,978,154 5.35%, 3/3/97 ........................................... 5,000,000 4,954,674 5.38%, 2/18/97 .......................................... 10,000,000 9,928,267 5.41%, 4/10/97 .......................................... 5,000,000 5,058,018 5.41%, 4/7/97 ........................................... 27,975,000 27,569,817 5.45%, 1/16/97 .......................................... 10,000,000 9,977,292 5.45%, 2/12/97 .......................................... 13,000,000 12,917,342 5.45%, 2/12/97 .......................................... 17,000,000 16,891,908 5.45%, 2/4/97 ........................................... 8,900,000 8,854,190 5.45%, 2/6/97 ........................................... 10,000,000 9,945,500 5.45%, 4/21/97(1) ....................................... 15,000,000 14,991,777 5.47%, 2/14/97 .......................................... 18,500,000 18,376,317 5.48%, 3/11/97 .......................................... 5,000,000 4,947,483 5.48%, 3/26/97 .......................................... 5,025,000 4,960,747 Household Finance Corp., 5.30%, 2/24/97.................... 15,000,000 14,880,750 Transamerica Finance Corp., 5.33%, 3/17/97 ................ 5,000,000 4,944,479 ---------- 520,909,625 -----------
9 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- --------- ELECTRICAL EQUIPMENT-0.4% Xerox Corp., 5.30%, 1/10/97 ............................. $15,000,000 $14,980,125 ----------- ELECTRONICS-2.3% Avnet, Inc., 5.34%, 3/14/97 .............................. 5,000,000 4,946,600 Mitsubishi Electric Finance America, Inc.: 5.32%, 2/21/97(3) ...................................... 10,000,000 9,924,633 5.33%, 1/30/97(3) ...................................... 16,285,000 16,214,929 5.35%, 1/15/97(3) ...................................... 10,000,000 9,979,194 5.36%, 2/5/97(3) ....................................... 25,000,000 24,869,722 5.37%, 1/3/97(3) ....................................... 16,734,000 16,729,008 ----------- 82,664,086 ----------- ENVIRONMENTAL-0.1% WMX Technologies, Inc., 5.36%, 4/18/97(3).................. 5,000,000 4,920,344 ----------- HEALTHCARE/DRUGS-0.1% Sandoz Corp., 5.30%, 1/23/97(3)............................ 5,000,000 4,983,806 ----------- HEALTHCARE/SUPPLIES & SERVICES-0.5% American Home Products, 5.33%, 1/10/97(3)................. 10,000,000 9,986,675 Sherwood Medical Co., 5.32%, 1/24/97(3).................... 7,000,000 6,976,208 ----------- 16,962,883 ----------- INDUSTRIAL SERVICES-0.4% Atlas Copco AB, 5.30%, 2/24/97(3)......................... 5,000,000 4,960,250 PHH Corp., 5.79%, 3/26/97(1).............................. 10,000,000 9,998,653 ----------- 14,958,903 ----------- INSURANCE-6.8% Allstate Life Insurance Co., 5.38%, 1/3/97(1)............. 10,000,000 10,000,000 General American Life Insurance Co., 5.58%, 1/3/97(1)..... 30,000,000 30,000,000 Jackson National Life: 5.39%, 1/3/97(1) ....................................... 15,000,000 15,000,000 5.40%, 1/3/97(1) ....................................... 30,000,000 30,000,000 Pacific Mutual Life Insurance Co., 5.57%, 1/2/97(1)(4).....50,000,000 50,000,000 Protective Life Insurance Co., 5.52%, 1/26/97(1)(4)........20,000,000 20,000,000
10 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- INSURANCE-6.8% (CONTINUED) TransAmerica Life Insurance & Annuity Co.: 5.38%, 10/15/97(1) .................................. $25,000,000 $ 25,000,000 5.38%, 8/7/97(1)(4) ................................. 25,000,000 25,000,000 5.38%, 9/30/97(1) ................................... 20,000,000 20,000,000 TransAmerica Occidental Life, 5.38%, 9/29/97(1)......... 20,000,000 20,000,000 ----------- 245,000,000 ----------- LEASING & FACTORING-0.9% International Lease Finance Corp.: 5.30%, 3/7/97 ........................................ 10,000,000 9,904,306 5.33%, 2/3/97 ........................................ 13,775,000 13,707,698 5.33%, 2/7/97 ........................................ 10,000,000 9,945,219 ----------- 33,557,223 ----------- NONDURABLE HOUSEHOLD GOODS-0.1% Newell Co., 5.33%, 3/7/97(3)............................. 5,000,000 4,951,882 ----------- OIL-INTEGRATED-0.3% Repsol International Finance, 5.35%, 3/28/97............. 10,000,000 9,872,194 ----------- SAVINGS & LOANS-0.2% First Bank FSB, 5.58%, 8/29/97(1)........................ 7,000,000 6,999,550 ----------- SPECIAL PURPOSE FINANCIAL-23.1% Asset Backed Capital Finance, Inc.: 5.45%, 3/12/97(3) 15,000,000 14,841,042 5.48%, 12/15/97(1)(4) ................................. 15,000,000 14,994,921 Asset-Securitization Cooperative: 5.31%, 1/29/97(3) ..................................... 10,000,000 9,958,700 5.31%, 2/18/97(3) ..................................... 15,000,000 14,893,867 5.31%, 2/26/97(3) ..................................... 25,000,000 24,793,500 5.33%, 3/11/97(3) ..................................... 7,000,000 6,928,489 5.33%, 3/17/97(3) ..................................... 10,000,000 9,888,958 5.34%, 3/18/97(3) ..................................... 14,200,000 14,039,919 5.35%, 3/19/97(3) ..................................... 10,000,000 9,885,569
11 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- SPECIAL PURPOSE FINANCIAL-23.1% (CONTINUED) Beta Finance, Inc.: 5.32%, 5/12/97(1)(3) ............................................... $15,000,000 $15,001,041 5.35%, 3/17/97(3) .................................................. 10,000,000 9,888,542 5.35%, 4/17/97(3) .................................................. 15,000,000 14,763,708 Cooperative Association of Tractor Dealers, Inc., 5.50%, 2/4/97 ...... 8,200,000 8,157,406 CXC, Inc.: 5.31%, 2/25/97(3) .................................................. 15,000,000 14,878,313 5.32%, 1/7/97(3) ................................................... 15,000,000 14,986,700 5.32%, 3/12/97(3) .................................................. 10,000,000 9,896,556 5.33%, 1/8/97(3) ................................................... 20,000,000 19,979,272 5.35%, 1/16/97(3) .................................................. 5,000,000 4,988,854 5.35%, 2/5/97(3) ................................................... 25,000,000 24,869,965 Falcon Asset Securitization Corp.: 5.30%, 2/25/97(3) .................................................. 15,000,000 14,878,542 5.32%, 1/13/97(3) .................................................. 21,000,000 20,962,760 5.33%, 1/7/97(3) ................................................... 16,000,000 15,985,787 First Deposit Master Trust 1993-3: 5.32%, 1/24/97(3) .................................................. 5,000,000 4,983,006 5.32%, 2/24/97(3) .................................................. 12,000,000 11,904,240 5.32%, 2/26/97(3) .................................................. 5,900,000 5,851,174 5.32%, 2/27/97(3) .................................................. 17,000,000 16,856,803 5.35%, 1/21/97(3) .................................................. 9,200,000 9,172,656 5.35%, 3/20/97(3) .................................................. 5,000,000 4,942,042 5.65%, 1/9/97(3) ................................................... 5,000,000 4,993,944 Fleet Funding Corp.: 5.32%, 1/9/97(3) ................................................... 27,026,000 26,994,049 5.45%, 1/17/97(3) .................................................. 25,000,000 24,939,444 New Center Asset Trust: 5.35%, 4/1/97 ...................................................... 15,000,000 14,799,375 5.40%, 2/6/97 ...................................................... 15,000,000 14,919,000 5.43%, 1/29/97 ..................................................... 25,000,000 24,894,417 7.30%, 1/2/97 ...................................................... 100,000,000 99,979,722 RACERS Series 1996-MM-12-3, 5.59%, 12/15/97(1)(4) .................... 15,000,000 15,000,000
12 STATEMENT OF INVESTMENTS DECEMBER 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- SPECIAL PURPOSE FINANCIAL-23.1% (CONTINUED) Sheffield Receivables Corp.: 5.32%, 1/16/97 ................................................... $ 7,450,000 $ 7,433,486 5.32%, 1/16/97(3) ................................................ 10,000,000 9,977,833 5.32%, 1/6/97(3) ................................................. 26,160,000 26,140,648 Short Term Card Account Trust 1995-1, Class A1, 5.61%, 1/15/97(1)(4) 15,000,000 15,000,000 Sigma Finance, Inc.: 5.30%, 5/16/97(3) ................................................ 5,000,000 4,900,625 5.31%, 5/12/97(3) ................................................ 10,000,000 9,806,775 5.31%, 5/14/97(3) ................................................ 6,500,000 6,372,486 5.31%, 5/19/97(3) ................................................ 5,000,000 4,898,225 5.32%, 5/6/97(3) ................................................. 5,000,000 4,907,639 5.33%, 3/3/97(3) ................................................. 5,000,000 4,954,843 5.37%, 4/15/97(3) ................................................ 15,000,000 14,767,300 5.37%, 4/28/97(3) ................................................ 21,000,000 20,634,668 5.37%, 4/8/97(3) ................................................. 14,000,000 13,797,432 5.38%, 1/3/97(3) ................................................. 10,000,000 9,997,011 5.38%, 4/9/97(3) ................................................. 24,000,000 23,649,024 5.44%, 2/28/97(3) ................................................ 10,000,000 9,912,356 5.45%, 1/24/97(3) ................................................ 5,000,000 4,982,590 5.45%, 2/19/97(3) ................................................ 15,000,000 14,888,729 SMM Trust: 1996-B, 5.42%, 8/4/97(4) ......................................... 10,000,000 10,000,000 1996-I, 5.71%, 5/29/97(1)(4) ..................................... 10,000,000 10,000,000 1996-V, 5.98%, 3/26/97(4) ........................................ 10,000,000 10,000,000 TIERS Series DCMT 1996-A, 5.64%, 10/15/97(1)(4)............ ........ 5,000,000 5,000,000 ----------- 831,713,953 ----------- TELECOMMUNICATIONS-TECHNOLOGY-2.9% GTE Corp., 5.48%, 4/1/97 ............................................ 10,000,000 9,863,000 NYNEX Corp.: 5.32%, 2/21/97 .................................................... 8,000,000 7,939,707 5.33%, 2/18/97 .................................................... 5,000,000 4,964,467 5.34%, 1/27/97 .................................................... 5,000,000 4,980,717 5.34%, 3/6/97 ..................................................... 10,000,000 9,905,067 5.34%, 3/7/97 ..................................................... 7,000,000 6,932,508
13 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- TELECOMMUNICATIONS-TECHNOLOGY-2.9% (CONTINUED) 5.35%, 1/10/97 ........................................................... $20,000,000 $ 19,973,250 5.35%, 1/24/97 ........................................................... 10,000,000 9,965,819 5.35%, 3/5/97 ............................................................ 5,000,000 4,953,363 5.42%, 1/13/97 ........................................................... 15,000,000 14,972,900 5.42%, 1/17/97 ........................................................... 9,400,000 9,377,607 -------------- 103,828,405 -------------- Total Short-Term Notes (Cost $3,121,654,966)................................ 3,121,654,966 -------------- U.S. GOVERNMENT AGENCIES-0.9% Federal Home Loan Bank, 5.68%, 8/1/97 (Cost $33,982,579)(1) ................ 34,000,000 33,982,579 -------------- FOREIGN GOVERNMENT OBLIGATIONS-1.0% Bayerische Landesbank Girozentrale, 5.07%, 7/29/97(1) ...................... 15,000,000 15,000,000 Westdeutsche Landesbank Girozentrale, guaranteeing commercial paper of: Unibanco-Uniao de Bancos Brasileiros SA-Grand Cayman-Series A, 5.37%, 4/7/97 5,000,000 4,928,400 Comision Federal de Electricidad: Series A, 5.31%, 2/18/97 ............................................... 10,000,000 9,929,200 Series A, 5.36%, 3/11/97 ............................................... 5,000,000 4,948,633 -------------- Total Foreign Government Obligations (Cost $34,806,233).... 34,806,233 -------------- Total Investments, at Value................................................. 100.5% 3,619,270,756 Liabilities in Excess of Other Assets....................................... (0.5) (17,781,686) ----- -------------- Net Assets.................................................................. 100.0% $3,601,489,070 ===== ==============
14 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc. Short-term notes, direct bank obligations and letters of credit are generally traded on a discount basis; the interest rate is the discount rate received by the Fund at the time of purchase. Other securities normally bear interest at the rates shown. 1. Floating or variable rate obligation. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on December 31, 1996. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice. Maturity date shown represents effective maturity based on variable rate and, if applicable, demand feature. 2. Put obligation redeemable at full face value on the date reported. 3. Restricted securities, including those issued in exempt transactions without registration under the Securities Act of 1933 (the Act), amounting to $881,361,667, or 24.47% of the Fund's net assets, have been determined to be liquid pursuant to guidelines adopted by the Board of Directors. 4. Restricted securities which are considered illiquid, by virtue of the absence of a readily available market or because of legal or contractual restrictions on resale, amount to $194,994,921, or 5.41% of the Fund's net assets. The Fund may not invest more than 10% of its net assets (determined at the time of purchase) in illiquid securities. See accompanying Notes to Financial Statements. 15 STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 Daily Cash Accumulation Fund, Inc.
ASSETS: Investments, at value-see accompanying statement ............. $3,619,270,756 Cash ......................................................... 4,025,043 Receivables: Interest ................................................... 7,239,494 Shares of capital stock sold ............................... 435,693 Other ........................................................ 71,879 -------------- Total assets ............................................. 3,631,042,865 -------------- LIABILITIES: Payables and other liabilities: Shares of capital stock redeemed ........................... 28,952,775 Service plan fees .......................................... 235,143 Dividends .................................................. 8,792 Directors' fees ............................................ 4,452 Other ........................................................ 352,633 -------------- Total liabilities .......................................... 29,553,795 -------------- NET ASSETS ................................................... $3,601,489,070 ============== COMPOSITION OF NET ASSETS: Par value of shares of capital stock ......................... $ 360,135,211 Additional paid-in capital ................................... 3,241,216,896 Accumulated net realized gain on investment transactions ..... 136,963 -------------- NET ASSETS-applicable to 3,601,352,108 shares of capital stock outstanding .......................................... $3,601,489,070 ============== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE .................................................. $1.00
See accompanying Notes to Financial Statements. 16 STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 Daily Cash Accumulation Fund, Inc.
INVESTMENT INCOME-Interest ............................................................. $ 197,327,796 ------------- EXPENSES: Management fees-Note 3 ................................................................. 13,374,834 Service plan fees-Note 3 ............................................................... 7,123,026 Transfer and shareholder servicing agent fees-Note 3 ................................... 2,910,657 Custodian fees and expenses ............................................................ 384,166 Registration and filing fees ........................................................... 342,496 Shareholder reports .................................................................... 273,627 Legal and auditing fees ................................................................ 45,581 Directors' fees and expenses ........................................................... 30,738 Insurance expenses ..................................................................... 29,160 Other .................................................................................. 11,999 ------------- Total expenses ....................................................................... 24,526,284 Less reimbursement of expenses by Centennial Asset Management Corporation-Note 3 ..... (441,801) ------------- Net expenses ......................................................................... 24,084,483 ------------- NET INVESTMENT INCOME .................................................................. 173,243,313 NET REALIZED GAIN ON INVESTMENTS ....................................................... 2,534 ------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................... $ 173,245,847 =============
See accompanying Notes to Financial Statements. 17 STATEMENTS OF CHANGES IN NET ASSETS Daily Cash Accumulation Fund, Inc.
Year Ended December 31, 1996 1995 --------------- --------------- OPERATIONS: Net investment income ................................. $ 173,243,313 $ 179,893,318 Net realized gain ..................................... 2,534 664,800 --------------- --------------- Net increase in net assets resulting from operations .. 173,245,847 180,558,118 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS ........... (173,245,601) (180,522,108) CAPITAL STOCK TRANSACTIONS: Net increase in net assets resulting from capital stock transactions-Note 2 ................................. 77,763,723 565,456,928 --------------- --------------- NET ASSETS: Total increase ........................................ 77,763,969 565,492,938 Beginning of period ................................... 3,523,725,101 2,958,232,163 --------------- --------------- End of period ......................................... $ 3,601,489,070 $ 3,523,725,101 =============== ===============
See accompanying Notes to Financial Statements. 18 FINANCIAL HIGHLIGHTS Daily Cash Accumulation Fund, Inc.
Year Ended December 31, 1996 1995 1994 1993 1992 ---- ---- ---- ---- ---- PER SHARE OPERATING DATA: Net asset value, beginning of period ................................... $1.00 $1.00 $1.00 $1.00 $1.00 Income from investment operations-net investment income and net realized gain ................ .05 .05 .04 .03 .03 Dividends and distributions to shareholders ... (.05) (.05) (.04) (.03) (.03) ----- ----- ----- ----- ----- Net asset value, end of period ................ $1.00 $1.00 $1.00 $1.00 $1.00 ===== ===== ===== ===== ===== TOTAL RETURN, AT NET ASSET VALUE(1) .......................... 4.93% 5.47% 3.77% 2.69% 3.54% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in millions) ....... $3,602 $3,524 $2,958 $3,589 $4,061 Average net assets (in millions) .............. $3,591 $3,379 $3,378 $3,940 $4,760 RATIOS TO AVERAGE NET ASSETS: Net investment income ......................... 4.82% 5.32% 3.64% 2.67% 3.50% Expenses, before voluntary reimbursement by the Manager .............................. 0.68% 0.71% 0.74% 0.74% 0.70% Expenses, net of voluntary reimbursement by the Manager .............................. 0.67% N/A 0.73% N/A N/A
1. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods of less than one full year. See accompanying Notes to Financial Statements. 19 NOTES TO FINANCIAL STATEMENTS Daily Cash Accumulation Fund, Inc. 1. SIGNIFICANT ACCOUNTING POLICIES Daily Cash Accumulation Fund, Inc. (the Fund) is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Fund's investment objective is to seek the maximum current income that is consistent with low capital risk and the maintenance of liquidity. The Fund seeks to achieve this objective by investing in "money market" securities meeting specified quality standards. The Fund's investment adviser is Centennial Asset Management Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). The following is a summary of significant accounting policies consistently followed by the Fund. Investment Valuation-Portfolio securities are valued on the basis of amortized cost, which approximates market value. Federal Taxes-The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. Therefore, no federal income or excise tax provision is required. Distributions to Shareholders-The Fund intends to declare dividends from net investment income each day the New York Stock Exchange is open for business and pay such dividends monthly. To effect its policy of maintaining a net asset value of $1.00 per share, the Fund may withhold dividends or make distributions of net realized gains. Other-Investment transactions are accounted for on the date the investments are purchased or sold (trade date). Realized gains and losses on investments are determined on an identified cost basis, which is the same basis used for federal income tax purposes. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 20 NOTES TO FINANCIAL STATEMENTS (Continued) Daily Cash Accumulation Fund, Inc. 2. CAPITAL STOCK The Fund has authorized 15,000,000,000 shares of $0.10 par value capital stock. Transactions in shares of capital stock were as follows:
Year Ended December 31, 1996 Year Ended December 31, 1995 ------------------------------------ ------------------------------------ Shares Amount Shares Amount -------------- --------------- -------------- --------------- Sold ...................... 7,263,772,507 $ 7,263,772,507 7,320,626,109 $ 7,320,626,109 Dividends and distributions reinvested ................ 170,695,960 170,695,960 177,673,219 177,673,219 Redeemed .................. (7,356,704,744) (7,356,704,744) (6,932,842,400) (6,932,842,400) -------------- --------------- -------------- --------------- Net increase .............. 77,763,723 $ 77,763,723 565,456,928 $ 565,456,928 ============== =============== ============== ===============
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for a fee of 0.45% on the first $500 million of average annual net assets with a reduction of 0.025% on each $500 million thereafter, to 0.25% on net assets in excess of $4 billion. The Manager has agreed to reimburse the Fund if aggregate expenses (with specified exceptions) exceed the most stringent applicable regulatory limit on Fund expenses. Independently of the investment advisory agreement with the Fund, effective December 1, 1994, the Manager has voluntarily agreed to assume the Fund's expenses to the level needed to enable the Fund's seven-day yield (computed in accordance with procedures specified pursuant to regulations adopted under the Investment Company Act of 1940) to at least equal the seven-day yield of Centennial Money Market Trust, a related Fund for which the Manager also serves as investment adviser. Shareholder Services, Inc. (SSI), a subsidiary of OFI, is the transfer and shareholder servicing agent for the Fund, and for other registered investment companies. SSI's total costs of providing such services are allocated ratably to these companies. Under an approved plan of distribution, the Fund may expend up to 0.20% of its net assets annually to reimburse certain securities dealers and other financial institutions and organizations for costs incurred in distributing Fund shares. 21 APPENDIX A DESCRIPTION OF SECURITIES RATINGS Below is a description of the two highest rating categories for Short Term Debt and Long Term Debt by the "Nationally-Recognized Statistical Rating Organizations" which the Manager evaluates in purchasing securities on behalf of the Fund. The ratings descriptions are based on information supplied by the ratings organizations to subscribers. Short Term Debt Ratings. Moody's Investors Service, Inc. ("Moody's"): The following rating designations for commercial paper (defined by Moody's as promissory obligations not having original maturity in excess of nine months), are judged by Moody's to be investment grade, and indicate the relative repayment capacity of rated issuers: Prime-1: Superior capacity for repayment. Capacity will normally be evidenced by the following characteristics: (a) leveling market positions in well- established industries; (b) high rates of return on funds employed; (c) conservative capitalization structures with moderate reliance on debt and ample asset protection; (d) broad margins in earning coverage of fixed financial charges and high internal cash generation; and (e) well established access to a range of financial markets and assured sources of alternate liquidity. Prime-2: Strong capacity for repayment. This will normally be evidenced by many of the characteristics cited above but to a lesser degree. Earnings trends and coverage ratios, while sound, will be more subject to variation. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternate liquidity is maintained. Moody's ratings for state and municipal short-term obligations are designated "Moody's Investment Grade" ("MIG"). Short-term notes which have demand features may also be designated as "VMIG". These rating categories are as follows: MIG1/VMIG1: Best quality. There is present strong protection by established cash flows, superior liquidity support or demonstrated broad-based access to the market for refinancing. MIG2/VMIG2: High quality. Margins of protection are ample although not so large as in the preceding group. Standard & Poor's Corporation ("S&P"): The following ratings by S&P for commercial paper (defined by S&P as debt having an original maturity of no more than 365 days) assess the likelihood of payment: A-1 A-1: Strong capacity for timely payment. Those issues determined to possess extremely strong safety characteristics are denoted with a plus sign (+) designation. A-2: Satisfactory capacity for timely payment. However, the relative degree of safety is not as high as for issues designated "A-1". S&P's ratings for Municipal Notes due in three years or less are: SP-1: Very strong or strong capacity to pay principal and interest. Those issues determined to possess overwhelming safety characteristics will be given a plus (+) designation. SP-2: Satisfactory capacity to pay principal and interest. S&P assigns "dual ratings" to all municipal debt issues that have a demand or double feature as part of their provisions. The first rating addresses the likelihood of repayment of principal and interest as due, and the second rating addresses only the demand feature. With short-term demand debt, S&P's note rating symbols are used with the commercial paper symbols (for example, "SP- 1+/A-1+"). Fitch Investors Service, Inc. ("Fitch"): Fitch assigns the following short-term ratings to debt obligations that are payable on demand or have original maturities of generally up to three years, including commercial paper, certificates of deposit, medium-term notes, and municipal and investment notes: F-1+: Exceptionally strong credit quality; the strongest degree of assurance for timely payment. F-1: Very strong credit quality; assurance of timely payment is only slightly less in degree than issues rated "F-1+". F-2: Good credit quality; satisfactory degree of assurance for timely payment, but the margin of safety is not as great as for issues assigned "F-1+" or "F-1" ratings. Duff & Phelps, Inc. ("Duff & Phelps"): The following ratings are for commercial paper (defined by Duff & Phelps as obligations with maturities, when issued, of under one year), asset-backed commercial paper, and certificates of deposit (the ratings cover all obligations of the institution with maturities, when issued, of under one year, including bankers' acceptance and letters of credit): Duff 1+: Highest certainty of timely payment. Short-term liquidity, including internal operating factors and/or access to alternative sources of funds, is outstanding, and safety is just below risk-free U.S. Treasury short-term A-2 obligations. Duff 1: Very high certainty of timely payment. Liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. Duff 1-: High certainty of timely payment. Liquidity factors are strong and supported by good fundamental protection factors. Risk factors are very small. Duff 2: Good certainty of timely payment. Liquidity factors and company fundamentals are sound. Although ongoing funding needs may enlarge total financing requirements, access to capital markets is good. Risk factors are small. IBCA Limited or its affiliate IBCA Inc. ("IBCA"): Short-term ratings, including commercial paper (with maturities up to 12 months), are as follows: A1+: Obligations supported by the highest capacity for timely repayment. A1: Obligations supported by a very strong capacity for timely repayment. A2: Obligations supported by a strong capacity for timely repayment, although such capacity may be susceptible to adverse changes in business, economic, or financial conditions. Thomson BankWatch, Inc. ("TBW"): The following short-term ratings apply to commercial paper, certificates of deposit, unsecured notes, and other securities having a maturity of one year or less. TBW-1: The highest category; indicates the degree of safety regarding timely repayment of principal and interest is very strong. TBW-2: The second highest rating category; while the degree of safety regarding timely repayment of principal and interest is strong, the relative degree of safety is not as high as for issues rated "TBW-1". Long Term Debt Ratings. These ratings are relevant for securities purchased by the Fund with a remaining maturity of 397 days or less, or for rating issuers of short-term obligations. Moody's: Bonds (including municipal bonds) are rated as follows: Aaa: Judged to be the best quality. They carry the smallest degree of investment risk and are generally referred to as "gilt edge." Interest payments are protected by a large or by an exceptionally stable margin, and principal is secure. While the various protective elements are likely to change, such A-3 changes as can be visualized are most unlikely to impair the fundamentally strong positions of such issues. Aa: Judged to be of high quality by all standards. Together with the "Aaa" group they comprise what are generally known as high-grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in "Aaa" securities or fluctuations of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in "Aaa" securities. Moody's applies numerical modifiers "1", "2" and "3" in its "Aa" rating classification. The modifier "1" indicates that the security ranks in the higher end of its generic rating category; the modifier "2" indicates a mid-range ranking; and the modifier "3" indicates that the issue ranks in the lower end of its generic rating category. Standard & Poor's: Bonds (including municipal bonds) are rated as follows: AAA: The highest rating assigned by S&P. Capacity to pay interest and repay principal is extremely strong. AA: A strong capacity to pay interest and repay principal and differ from "AAA" rated issues only in small degree. Fitch: AAA: Considered to be investment grade and of the highest credit quality. The obligor has an exceptionally strong ability to pay interest and repay principal, which is unlikely to be affected by reasonably foreseeable events. AA: Considered to be investment grade and of very high credit quality. The obligor's ability to pay interest and repay principal is very strong, although not quite as strong as bonds rated "AAA". Plus (+) and minus (-) signs are used in the "AA" category to indicate the relative position of a credit within that category. Because bonds rated in the "AAA" and "AA" categories are not significantly vulnerable to foreseeable future developments, short-term debt of these issuers is generally rated "F-1+". Duff & Phelps: AAA: The highest credit quality. The risk factors are negligible, being only slightly more than for risk-free U.S. Treasury debt. AA: High credit quality. Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Plus (+) A-4 and minus (-) signs are used in the "AA" category to indicate the relative position of a credit within that category. IBCA: Long-term obligations (with maturities of more than 12 months) are rated as follows: AAA: The lowest expectation of investment risk. Capacity for timely repayment of principal and interest is substantial such that adverse changes in business, economic, or financial conditions are unlikely to increase investment risk significantly. AA: A very low expectation for investment risk. Capacity for timely repayment of principal and interest is substantial. Adverse changes in business, economic, or financial conditions may increase investment risk albeit not very significantly. A plus (+) or minus (-) sign may be appended to a long term rating to denote relative status within a rating category. TBW: TBW issues the following ratings for companies. These ratings assess the likelihood of receiving payment of principal and interest on a timely basis and incorporate TBW's opinion as to the vulnerability of the company to adverse developments, which may impact the market's perception of the company, thereby affecting the marketability of its securities. A: Possesses an exceptionally strong balance sheet and earnings record, translating into an excellent reputation and unquestioned access to its natural money markets. If weakness or vulnerability exists in any aspect of the company's business, it is entirely mitigated by the strengths of the organization. A/B: The company is financially very solid with a favorable track record and no readily apparent weakness. Its overall risk profile, while low, is not quite as favorable as for companies in the highest rating category. A-5 APPENDIX B AUTOMATIC WITHDRAWAL PLAN PROVISIONS By requesting an Automatic Withdrawal Plan, the shareholder agrees to the terms and conditions applicable to such plans, as stated below and elsewhere in the Application for such Plans, and the Prospectus and this Statement of Additional Information as they may be amended from time to time by the Fund and/or the Distributor. When adopted, such amendments will automatically apply to existing Plans. Fund shares will be redeemed as necessary to meet withdrawal payments. Depending on the amount withdrawn, the investor's principal may be depleted. Payments made to shareholders under such plans may not be considered as a yield or income on investment. Purchases of additional shares concurrently with withdrawals are undesirable because of sales charges on purchases. Accordingly, a shareholder may not maintain an Automatic Withdrawal Plan while simultaneously making regular purchases. 1. Shareholder Services, Inc. (the "Transfer Agent") will administer the Automatic Withdrawal Plan (the "Plan") as agent for the person (the "Planholder") who executed the Plan authorization and application submitted to the Transfer Agent. 2. Certificates will not be issued for shares of the Funds purchased for and held under the Plan, but the Transfer Agent will credit all such shares to the account of the Planholder on the records of the Fund. Any share certificates now held by the Planholder may be surrendered unendorsed to the Transfer Agent with the Plan application so that the shares represented by the certificate may be held under the Plan. Those shares will be carried on the Planholder's Plan Statement. 3. Distributions of capital gains must be reinvested in shares of the Fund, which will be done at net asset value without a sales charge. Dividends may be paid in cash or reinvested. 4. Redemptions of shares in connection with disbursement payments will be made at the net asset value per share determined on the redemption date. 5. Checks or ACH payments will be transmitted three business days prior to the date selected for receipt of the monthly or quarterly payment (the date of receipt is approximate), according to the choice specified in writing by the Planholder. 6. The amount and the interval of disbursement payments and the address to which checks are to be mailed may be changed at any time by the Planholder on written notification to the Transfer Agent. The Planholder should allow at least two weeks' time in mailing such notification before the requested change can be put into effect. 7. The Planholder may, at any time, instruct the Transfer Agent by written notice (in proper form in accordance with the requirements of the then-current Prospectus of the Fund) to B-1 redeem all, or any part of, the shares held under the Plan. In such case, the Transfer Agent will redeem the number of shares requested at the net asset value per share in effect in accordance with the Fund's usual redemption procedures and will mail a check for the proceeds of such redemption to the Planholder. 8. The Plan may, at any time, be terminated by the Planholder on written notice to the Transfer Agent, or by the Transfer Agent upon receiving directions to that effect from the Fund. the Transfer Agent will also terminate the Plan upon receipt of evidence satisfactory to it of the death or legal incapacity of the Planholder. Upon termination of the Plan by the Transfer Agent or the Fund, shares remaining unredeemed will be held in an uncertificated account in the name of the Planholder, and the account will continue as a dividend-reinvestment, uncertificated account unless and until proper instructions are received from the Planholder, his executor or guardian, or as otherwise appropriate. 9. For purposes of using shares held under the Plan as collateral, the Planholder may request issuance of a portion of his shares in certificated form. Upon written request from the Planholder, the Transfer Agent will determine the number of shares as to which a certificate may be issued, so as not to cause the withdrawal checks to stop because of exhaustion of uncertificated shares needed to continue payments. Should such uncertificated shares become exhausted, Plan withdrawals will terminate. 10. The Transfer Agent shall incur no liability to the Planholder for any action taken or omitted by the Transfer Agent in good faith. 11. In the event that the Transfer Agent shall cease to act as transfer agent for the Fund, the Planholder will be deemed to have appointed any successor transfer agent to act as his agent in administering the Plan. B-2 APPENDIX C Industry Classifications Corporate Industry Classifications Aerospace/Defense Air Transportation Auto Parts Distribution Automotive Bank Holding Companies Banks Beverages Broadcasting Broker-Dealers Building Materials Cable Television Chemicals Commercial Finance Computer Hardware Computer Software Conglomerates Consumer Finance Containers Convenience Stores Department Stores Diversified Financial Diversified Media Drug Stores Drug Wholesalers Durable Household Goods Education Electric Utilities Electrical Equipment Electronics Energy Services & Producers Entertainment/Film Environmental Food Gas Utilities Gold Health Care/Drugs Health Care/Supplies & Services Homebuilders/Real Estate Hotel/Gaming Industrial Services Insurance Leasing & Factoring Leisure Manufacturing Metals/Mining Nondurable Household Goods Oil - Integrated Paper Publishing/Printing Railroads Restaurants Savings & Loans Shipping Special Purpose Financial Specialty Retailing Steel Supermarkets Telecommunications - Technology Telephone - Utility Textile/Apparel Tobacco Toys Trucking C-1 Investment Advisor and Distributor Centennial Asset Management Corporation 6803 South Tucson Way Englewood, Colorado 80112 Transfer and Shareholder Servicing Agent Shareholder Services, Inc. P.O. Box 5143 Denver, Colorado 80217 1-800 525-9310 Custodian Citibank, N.A. 399 Park Avenue New York, New York 10043 Independent Auditors Deloitte & Touche LLP 555 Seventeenth Street Denver, Colorado 80202 Legal Counsel Myer, Swanson, Adams & Wolf, P.C. 1600 Broadway Denver, Colorado 80202 PX0140.001.0597 DEAR SHAREHOLDER: The job of a money market portfolio is to provide liquidity, safety of principal and a yield that keeps pace with inflation. During the fiscal year ended June 30, 1997, your Centennial Money Market Trust achieved those objectives. For the fiscal year ended June 30, 1997, Centennial Money Market Trust had a compounded annual yield of 4.99%. Without compounding, the corresponding yield was 4.87%. The seven-day annualized yields, with and without compounding, for the year ended June 30, 1997 were 5.17% and 5.04%, respectively.(1) It's important to remember that an investment in the Trust is neither insured nor guaranteed by the U.S. government, and there is no assurance that the Trust will maintain a stable $1.00 share price in the future. Our strategy is to invest in the securities that present minimal credit risk. Through our independent credit analysis, we are able to add value, in the way of additional yield, by identifying and investing in securities that are improving credits. We may invest in securities that receive the second highest rating issued by one credit rating agency, but that security must also have been assigned the highest rating by at least two other ratings agencies. We invest in such a "split-rated" security only if it is, in our opinion, an improving credit and likely to be upgraded. The U.S. economy is in the midst of one of its best periods in decades, with growth in 1997 reaching an annual rate of 4%, up from about 2% in 1995. Unemployment has fallen to its lowest level since the early 1970s. Meanwhile, inflation is dormant, despite the strengthening economy. As a result, interest rates have remained under control. Although 30-year Treasury rates have risen above 7% several times during the past twelve months, yields on short-term securities, such as U.S. Treasury bills and money market securities, have hovered closer to 5%. In comparison, the annual inflation rate is generally agreed to be about 2.5%.(2) That means that the difference between money market yields and inflation is roughly 3 percentage points, twice the normal "spread." Considering their low level of risk and their traditional role as an alternative to cash, today's money market fund yields are quite attractive. On March 25, 1997, the Federal Reserve Board raised short-term interest rates by 0.25%. Many market observers predicted the Fed's attempt to slow down the economy, since the Gross Domestic Product during the first quarter of 1997 was growing at a 5.8% annual rate. Although the March action came as no surprise, the next question was whether the Fed was going to raise interest rates further. However, the Fed often behaves unexpectedly. Many investors expected the Fed to raise interest rates another 0.25% at its May 20, 1997 meeting. Instead, the Fed left interest rates unchanged, satisfied that the economy was slowing down. Rather than try to make such predictions, our strategy is to "ladder" the portfolio with some securities maturing in a few days, some maturing in a month, some maturing in two months and so on. With a relatively broad maturity spectrum, the portfolio is less affected by Fed moves up or down. At the same time, the portfolio is able to enjoy higher income typically available on longer-term money market securities. Thank you for your confidence in Centennial Money Market Trust. We look forward to helping you reach your investment goals in the future. Sincerely, /s/ JAMES C. SWAIN James C. Swain Chairman Centennial Money Market Trust /s/ BRIDGET A. MACASKILL Bridget A. Macaskill President Centennial Money Market Trust July 22, 1997 1. Compounded yields assume reinvestment of dividends. Past performance does not guarantee future results. 2. Data: Labor Dept. STATEMENT OF INVESTMENTS June 30, 1997 Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- BANKERS' ACCEPTANCES-0.3% BankBoston, N.A., 5.28%, 8/18/97 . . . . . . . . . . . . . . . . . . . . $ 18,000,000 $ 17,873,280 Barnett Banks, Inc., 5.59%, 11/25/97 . . . . . . . . . . . . . . . . . . 10,000,000 9,771,742 -------------- Total Bankers' Acceptances . . . . . . . . . . . . . . . . . . . . . . . 27,645,022 -------------- CERTIFICATES OF DEPOSIT-3.1% DOMESTIC CERTIFICATES OF DEPOSIT-0.7% LaSalle National Bank: 5.46%, 7/1/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000 5.52%, 7/9/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 17,000,000 5.67%, 10/17/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000 -------------- 62,000,000 -------------- YANKEE CERTIFICATES OF DEPOSIT-2.4% ABN Amro Bank, N.V., 5.49%, 7/11/97 . . . . . . . . . . . . . . . . . . . 35,000,000 35,000,191 Deutsche Bank AG, 5.55%, 7/3/97 . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,999,952 Societe Generale: 5.45%, 7/14/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,398 5.68%, 8/21/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000,000 18,000,206 5.68%, 8/21/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,999,850 5.72%, 10/21/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,969,410 5.75%, 12/23/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 5.75%, 12/23/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000 5.75%, 8/18/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 5.75%, 8/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 5.92%, 9/17/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,012,065 -------------- 212,982,072 -------------- Total Certificates of Deposit . . . . . . . . . . . . . . . . . . . . . 274,982,072 -------------- DIRECT BANK OBLIGATIONS-5.8% Abbey National North America Corp.: 5.275%, 8/21/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,850,542 5.39%, 7/11/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,000,000 71,892,339 ABN Amro North America Finance, Inc.: 5.28%, 7/23/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,835,611 5.37%, 7/11/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,947,792 Bank One Dayton N.A., 5.70%, 11/3/97(1) . . . . . . . . . . . . . . . . . 15,000,000 14,997,187 BankBoston, N.A.: 5.05%, 1/20/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 5.53%, 7/11/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 5.69%, 8/27/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 30,000,000 5.69%, 8/29/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 40,000,000 5.69%, 9/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000
3 STATEMENT OF INVESTMENTS June 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- DIRECT BANK OBLIGATIONS (CONTINUED) Bankers Trust Co., New York: 5.37%, 12/10/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,000,000 $ 16,998,186 5.60%, 11/26/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,993,026 5.66%, 6/9/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,992,249 5.70%, 10/17/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,999,126 5.70%, 4/3/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,996,809 5.71%, 4/15/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000 CoreStates Capital Corp., 5.608%, 12/18/97(1) . . . . . . . . . . . . . . . . . . . . . . 13,000,000 12,996,562 FCC National Bank: 5.60%, 5/8/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,993,336 5.63%, 8/21/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,999,595 Huntington National Bank, 5.53%, 7/9/97 . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 National Westminster Bank of Canada: 5.38%, 7/2/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 6,998,954 5.38%, 7/7/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,986,550 Societe Generale North America, Inc.: 5.39%, 7/14/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,961,072 5.61%, 9/2/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,852,737 Westdeutsche Landesbank Girozentrale, 5.58%, 12/22/97 . . . . . . . . . . . . . . . . . . 13,500,000 13,135,905 -------------- Total Direct Bank Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528,427,578 -------------- LETTERS OF CREDIT-3.5% Bank of America, guaranteeing commercial paper of Formosa Plastics Corp. USA-Series B, 5.57%, 10/27/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,543,569 Bank One, Cleveland, guaranteeing commercial paper of Capital One Funding Corp.: Series 1995F, 5.63%, 7/13/97(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . 10,496,000 10,496,000 Series 1995F, 5.63%, 7/13/97(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . 8,750,000 8,750,000 Barclays Bank PLC, guaranteeing commercial paper of: Banco Bradesco SA-Grand Cayman Branch-Series A, 5.58%, 10/21/97 . . . . . . . . . . . 20,000,000 19,652,800 Banco Bradesco SA-Grand Cayman Branch-Series A, 5.62%, 9/4/97 . . . . . . . . . . . . 20,000,000 19,797,056 Banco Bradesco SA-Grand Cayman Branch-Series A, 5.65%, 12/1/97 . . . . . . . . . . . . 5,000,000 4,879,937 Banco Bradesco SA-Grand Cayman Branch-Series B, 5.59%, 12/2/97 . . . . . . . . . . . . 22,000,000 21,473,919 Banco Bradesco SA-Grand Cayman Branch-Series B, 5.62%, 12/3/97 . . . . . . . . . . . . 5,000,000 4,879,014 Banco Nacionale de Mexico SA-Series B, 5.64%, 7/8/97 . . . . . . . . . . . . . . . . . 15,000,000 14,983,550 Bayerische Vereinsbank AG, guaranteeing commercial paper of Galicia Funding Corp.-Series B, 5.62%, 9/5/97(3) . . . . . . . . . . . . . . . . . . . 10,000,000 9,896,967
4 STATEMENT OF INVESTMENTS June 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- LETTERS OF CREDIT (CONTINUED) Credit Suisse, guaranteeing commercial paper of: CEMEX, S.A. de C.V.-Series A, 5.31%, 8/18/97 . . . . . . . . . . . . . . . . . . . . . $ 15,000,000 $ 14,893,800 COSCO (Cayman) Co., Ltd., 5.59%, 10/24/97 . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,821,431 COSCO (Cayman) Co., Ltd., 5.62%, 8/19/97 . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,885,258 Daewoo International Corp., 5.45%, 7/15/97 . . . . . . . . . . . . . . . . . . . . . . 9,000,000 8,980,925 Daewoo International Corp., 5.60%, 9/9/97 . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,891,111 Guangdon Enterprises Ltd., 5.67%, 8/19/97 . . . . . . . . . . . . . . . . . . . . . . 6,000,000 5,953,613 Minmetals Capitals & Securities, Inc., 5.61%, 8/12/97 . . . . . . . . . . . . . . . . 10,000,000 9,934,550 Pemex Capital, Inc.-Series B, 5.62%, 11/3/97 . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,902,431 Societe Generale, guaranteeing commercial paper of: Banco Nacionale de Comercio Exterior, SNC-Series A, 5.61%, 11/25/97 . . . . . . . . . 30,000,000 29,312,775 Banco Nacionale de Comercio Exterior, SNC-Series A, 5.61%, 12/1/97 . . . . . . . . . . 22,500,000 21,963,544 Banco Nacionale de Comercio Exterior, SNC-Series B, 5.61%, 12/1/97 . . . . . . . . . . 10,000,000 9,761,575 Girsa Funding Corp., 5.57%, 7/2/97(3) . . . . . . . . . . . . . . . . . . . . . . . . 8,200,000 8,198,731 Nacional Financiera SNC-Series A, 5.60%, 8/20/97 . . . . . . . . . . . . . . . . . . . 10,000,000 9,922,222 Nacional Financiera SNC-Series A, 5.75%, 8/18/97 . . . . . . . . . . . . . . . . . . . 20,000,000 19,846,667 -------------- Total Letters of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317,621,445 -------------- SHORT-TERM Notes-81.4% AUTOMOTIVE-0.9% BMW US Capital Corp.: 5.60%, 8/20/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,844,444 5.60%, 8/25/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,740,000 65,177,558 -------------- 85,022,002 -------------- BANK HOLDING COMPANIES-1.0% Bankers Trust New York Corp., 5.39%, 7/9/97 . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,982,033 Barnett Banks, Inc., 5.70%, 7/7/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,966,750 CoreStates Capital Corp., 5.61%, 7/14/97(1) . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 Morgan (J.P.) & Co., Inc., 5.38%, 7/9/97 . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,976,089 NationsBank Corp., 5.37%, 7/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000,000 8,990,602 -------------- 93,915,474 -------------- BANKS-2.1% BankBoston, N.A.: 5.42%, 8/19/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000 5.69%, 9/4/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 30,000,000 Bankers Trust Co., New York: 5.39%, 7/7/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,955,083 5.69%, 4/23/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,996,837
5 STATEMENT OF INVESTMENTS June 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- BANKS (CONTINUED) FCC National Bank: 5.62%, 2/20/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000,000 $ 14,995,294 5.69%, 9/11/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000 5.87%, 11/10/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000,000 32,008,127 -------------- 186,955,341 -------------- BEVERAGES-1.2% Coca-Cola Enterprises, Inc.: 5.65%, 7/21/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,921,528 5.66%, 7/24/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,927,678 5.67%, 8/5/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,862,187 5.68%, 7/14/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,979,489 5.70%, 8/21/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,798,125 ------------- 104,489,007 ------------- BROKER/DEALERS-16.3% Bear Stearns Cos., Inc.: 5.44%, 5/22/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000,000 18,000,000 5.47%, 8/1/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000 5.60%, 8/20/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,805,556 5.60%, 8/4/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,841,333 5.61%, 8/27/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,689,112 5.61%, 8/28/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,728,850 5.61%, 9/22/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000,000 17,767,185 5.62%, 9/11/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,719,000 5.62%, 9/2/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,852,475 5.62%, 9/4/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,746,319 5.63%, 7/14/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,000,000 33,930,876 5.64%, 10/6/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,468,117 5.66%, 7/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,891,000 49,836,197 5.668%, 4/3/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 5.677%, 2/9/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,018,858 5.75%, 4/1/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000 CS First Boston, Inc.: 5.36%, 7/11/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000,000 17,973,200 5.42%, 5/12/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000 5.43%, 6/2/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000 5.43%, 7/8/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,973,604 5.60%, 8/28/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,774,444 5.617%, 3/13/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 17,000,000
6 STATEMENT OF INVESTMENTS June 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- BROKER/DEALERS (CONTINUED) Dean Witter, Discover & Co., 5.888%, 9/29/97(1) . . . . . . . . . . . . . . . . . . . . . $ 20,000,000 $ 20,010,940 Goldman Sachs Group, L.P.: 5.60%, 9/12/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,602,556 5.61%, 9/10/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,612,754 5.62%, 10/6/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,470,003 5.62%, 9/4/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,644,847 5.62%, 9/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,730,708 5.78%, 9/22/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 30,000,000 Goldman Sachs Group, L.P., Promissory Nts.: 5.844%, 10/10/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 5.87%, 11/10/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000 5.88%, 12/12/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 35,000,000 5.89%, 9/4/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000 Lehman Brothers Holdings, Inc.: 5.62%, 11/21/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,000,000 27,374,931 5.63%, 8/22/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,918,678 5.64%, 7/2/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,994,517 5.64%, 9/10/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,777,533 5.65%, 7/10/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,964,687 5.65%, 7/7/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,976,458 5.677%, 2/3/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 5.771%, 6/18/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 35,106,786 Merrill Lynch & Co., Inc.: 5.28%, 7/3/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,995,600 5.36%, 7/2/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,996,239 5.39%, 7/18/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,961,821 5.40%, 7/11/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,970,000 5.40%, 7/9/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,988,000 5.58%, 10/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,671,400 5.58%, 12/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000,000 20,456,415 5.59%, 12/1/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,524,850 5.60%, 8/25/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,871,667 5.60%, 8/29/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,862,333 5.62%, 8/28/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,818,911 5.62%, 9/3/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,800,178 5.63%, 7/14/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,000,000 26,945,107 5.648%, 1/8/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,997,449 5.65%, 7/10/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,971,750 5.68%, 10/24/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,998,425 5.68%, 3/18/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,997,912
7 STATEMENT OF INVESTMENTS June 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- BROKER/DEALERS (CONTINUED) Merrill Lynch & Co., Inc. (Continued) 5.68%, 7/16/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000,000 $ 24,940,833 5.685%, 5/26/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,997,720 5.70%, 8/12/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,000,000 12,913,550 5.70%, 9/19/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000 5.75%, 12/19/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,999,661 Morgan Stanley, Dean Witter, Discover & Co., 5.50%, 3/24/98 . . . . . . . . . . . . . . . 23,744,000 23,744,000 -------------- 1,476,734,345 -------------- CHEMICALS-1.1% Henkel Corp.: 5.58%, 10/17/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,000,000 12,782,380 5.58%, 10/23/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,558,250 5.58%, 10/24/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,554,375 5.61%, 9/11/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,887,800 5.70%, 10/20/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,000,000 28,490,325 -------------- 100,273,130 -------------- COMMERCIAL FINANCE-14.2% CIT Group Holdings, Inc.: 5.58%, 11/20/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000,000 69,980,400 5.60%, 12/23/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,990,703 5.60%, 5/22/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,978,936 5.60%, 8/26/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000,000 64,433,778 5.625%, 9/17/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,996,126 5.63%, 7/17/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,949,956 5.764%, 3/11/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000,000 11,000,000 Countrywide Home Loans: 5.57%, 7/1/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 50,000,000 5.59%, 9/18/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,754,661 5.60%, 8/13/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 39,732,444 5.60%, 8/25/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,095,000 68,503,854 5.61%, 8/27/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,822,350 5.62%, 8/14/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,896,967 5.62%, 8/28/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 39,637,822 5.63%, 8/29/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 39,630,922 5.63%, 9/4/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,491,736 FINOVA Capital Corp.: 5.30%, 7/14/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,961,217 5.40%, 7/21/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,922,667 5.43%, 7/10/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,993,212
8 STATEMENT OF INVESTMENTS June 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- COMMERCIAL FINANCE (CONTINUED) 5.47%, 7/11/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000,000 $ 9,984,806 5.47%, 7/16/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,988,604 5.61%, 10/16/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,749,888 5.61%, 10/22/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,559,771 5.61%, 10/30/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000,000 53,962,929 5.61%, 10/31/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,809,883 5.61%, 11/21/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000,000 11,732,590 5.61%, 11/7/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,899,488 5.63%, 11/25/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,655,163 5.63%, 8/21/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,840,483 5.63%, 9/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,940,572 5.64%, 11/14/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,573,867 5.64%, 9/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,783,800 5.65%, 9/12/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,770,861 5.65%, 9/4/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,744,965 5.69%, 12/3/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,000,000 28,289,540 5.72%, 8/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,821,250 Heller Financial, Inc.: 5.71%, 10/1/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,998,488 5.71%, 10/10/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,998,340 5.72%, 8/27/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,728,300 5.73%, 9/9/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,665,750 5.74%, 11/13/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,461,875 5.75%, 12/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,733,264 5.75%, 7/16/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,964,063 5.75%, 9/4/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,636,632 5.75%, 9/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,779,583 5.80%, 10/9/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000,000 44,275,000 5.80%, 12/22/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,018,833 5.831%, 12/18/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 35,000,000 -------------- 1,289,046,339 -------------- COMPUTER SOFTWARE-0.8% First Data Corp.: 5.58%, 12/16/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,088,600 5.60%, 9/9/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000,000 23,738,667 5.605%, 1/27/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,444,171 -------------- 74,271,438 --------------
9 STATEMENT OF INVESTMENTS June 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- CONGLOMERATES-1.0% Mitsubishi International Corp.: 5.55%, 7/3/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68,850,000 $ 68,828,771 5.60%, 9/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,940,889 5.61%, 8/20/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,844,167 -------------- 93,613,827 -------------- CONSUMER FINANCE-1.2% Island Finance Puerto Rico, Inc.: 5.60%, 9/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,881,778 5.61%, 8/29/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,843,699 5.61%, 9/2/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,803,650 5.61%, 9/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,946,238 5.62%, 8/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,894,625 Sears Roebuck Acceptance Corp.: 5.60%, 8/25/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,700,556 6.20%, 7/1/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000,000 9,000,000 -------------- 110,070,546 -------------- DIVERSIFIED FINANCIAL-10.4% Associates Corp. of North America, 5.65%, 7/14/97 . . . . . . . . . . . . . . . . . . . . 35,000,000 34,928,590 Ford Motor Credit Corp.: 5.57%, 10/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000,000 73,769,958 5.57%, 10/30/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,063,931 5.57%, 11/20/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,500,000 41,566,251 5.58%, 12/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,256,000 General Electric Capital Corp.: 5.37%, 7/10/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 39,946,300 5.40%, 7/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,989,500 5.57%, 11/20/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,340,883 5.57%, 11/28/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,419,792 5.58%, 11/3/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,515,625 5.59%, 9/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,704,972 5.60%, 9/10/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,613,444 5.75%, 7/2/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,992,014 General Electric Capital Services: 5.36%, 7/16/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000,000 17,959,800 5.57%, 11/24/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 48,870,528 General Motors Acceptance Corp.: 5.31%, 8/6/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,000,000 63,659,750 5.41%, 7/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,964,234 5.45%, 7/14/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000,000 17,964,575 5.60%, 7/29/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,847,556 5.61%, 12/22/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,000,000 22,376,355
10 STATEMENT OF INVESTMENTS JUNE 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- DIVERSIFIED FINANCIAL (CONTINUED) 5.63%, 12/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,340,000 $ 6,181,359 5.70%, 12/9/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 48,725,417 5.73%, 11/18/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,000,000 26,398,350 5.73%, 11/24/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,604,948 5.75%, 4/21/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,987,616 6.25%, 7/1/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,000,000 46,000,000 Household Finance Corp., 5.59%, 9/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,409,944 Prudential Funding Corp., 5.685%, 5/5/98(1) . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,992,873 -------------- 947,050,565 -------------- DRUG WHOLESALERS-0.4% Glaxo Wellcome PLC, 5.60%, 9/11/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000,000 37,574,400 -------------- ELECTRONICS-0.8% Avnet, Inc., 5.66%, 8/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,940,256 Mitsubishi Electric Finance America, Inc.: 5.63%, 8/20/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,804,514 5.63%, 9/3/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,949,956 5.66%, 8/6/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,915,000 5.67%, 7/23/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,982,675 5.68%, 8/13/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000,000 8,938,940 -------------- 68,531,341 -------------- HEALTHCARE/SUPPLIES & SERVICES-1.6% AC Acquisition Holding Co.: 5.61%, 8/15/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,824,688 5.61%, 8/22/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000,000 17,854,140 American Home Products Corp.: 5.62%, 9/10/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,667,483 5.62%, 9/8/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000,000 44,515,275 5.63%, 9/4/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,745,868 -------------- 141,607,454 -------------- INDUSTRIAL SERVICES-1.1% Atlas Copco AB, 5.625%, 8/25/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,957,031 PHH Corp.: 5.658%, 1/27/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,991,076 5.658%, 1/27/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,000,000 26,996,927 5.698%, 1/15/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,999,102 -------------- 98,944,136 --------------
11 STATEMENT OF INVESTMENTS JUNE 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- INSURANCE-6.7% Allstate Life Insurance Co., 5.691%, 7/1/97(1) . . . . . . . . . . . . . . . . . . . . . $ 40,000,000 $ 40,000,000 General American Life Insurance Co., 5.89%, 7/1/97(1) . . . . . . . . . . . . . . . . . . 50,000,000 50,000,000 Jackson National Life Insurance Co.: 5.71%, 3/1/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 40,000,000 5.711%, 8/1/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 30,000,000 Pacific Mutual Life Insurance Co., 5.756%, 7/21/97(1)(2) . . . . . . . . . . . . . . . . 60,000,000 60,000,000 Protective Life Insurance Co.: 5.751%, 11/25/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000 5.751%, 4/1/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 5.841%, 7/21/97(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000 Prudential Life Insurance Co., 5.773%, 1/31/00(1) . . . . . . . . . . . . . . . . . . . . 140,000,000 140,000,000 Transamerica Life Insurance & Annuity Co.: 5.687%, 5/15/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 40,000,000 5.691%, 10/15/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 50,000,000 5.691%, 9/30/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 30,000,000 5.735%, 3/22/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,000,000 43,000,000 Transamerica Occidental Corp., 5.691%, 9/29/97(1) . . . . . . . . . . . . . . . . . . . . 30,000,000 30,000,000 -------------- 603,000,000 -------------- LEASING & FACTORING-1.9% American Honda Finance Corp.: 5.62%, 7/31/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000,000 54,742,417 5.65%, 7/28/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,915,250 5.65%, 8/4/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,866,597 5.812%, 6/16/98(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 15,000,000 International Lease Finance Corp.: 5.27%, 7/17/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,960,182 5.27%, 7/21/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,926,806 The Hertz Corp., 5.60%, 9/2/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,833,400 -------------- 173,244,652 -------------- METALS/MINING-0.3% RTZ America, Inc.: 5.57%, 12/22/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000,000 13,623,097 5.58%, 12/19/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,549,415 -------------- 30,172,512 --------------
12 STATEMENT OF INVESTMENTS JUNE 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- NONDURABLE HOUSEHOLD GOODS-0.9% Avon Capital Corp.: 5.63%, 9/11/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,000,000 $ 7,909,920 5.63%, 9/29/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000,000 8,873,325 5.63%, 9/8/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,500,000 8,408,278 5.64%, 8/28/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,909,133 Newell Co.: 5.60%, 10/17/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,664,000 5.60%, 9/19/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,688,889 -------------- 79,453,545 -------------- OIL-INTEGRATED-0.4% Repsol International Finance BV: 5.39%, 7/15/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000,000 10,976,943 5.60%, 12/9/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000,000 23,398,933 -------------- 34,375,876 -------------- SAVINGS & LOANS-1.9% First Bank FSB, 5.658%, 8/29/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,999,606 Great Western Bank FSB: 5.60%, 8/21/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,801,667 5.61%, 9/12/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,772,483 5.61%, 9/17/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,817,675 5.61%, 9/19/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,688,333 5.62%, 9/11/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 39,550,700 Household Bank FSB., 5.71%, 9/19/97(1) . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000 -------------- 173,630,464 -------------- SPECIAL PURPOSE FINANCIAL-15.2% Asset Backed Capital Finance, Inc.: 5.60%, 11/17/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,891,889 5.60%, 12/26/97(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 39,987,424 5.65%, 9/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,510,000 11,385,356 5.66%, 3/16/98(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,995,248 5.66%, 8/1/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000,000 47,766,053 5.68%, 7/22/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,900,600 5.687%, 12/15/97(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,994,313 5.70%, 8/22/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,794,167
13 STATEMENT OF INVESTMENTS JUNE 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- SPECIAL PURPOSE FINANCIAL (CONTINUED) Asset Backed Securities Investment Trust-Series 1997A, 5.738% 2/16/98(1)(2) . . . . . . . $ 20,000,000 $ 19,998,751 Asset Securitization Cooperative Corp.: 5.59%, 12/3/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,759,319 5.60%, 9/18/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000,000 20,741,933 5.62%, 9/5/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,484,833 5.62%, 9/8/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,676,850 5.63%, 8/1/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,927,279 Beta Finance, Inc.: 5.61%, 9/5/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,000,000 18,804,585 5.62%, 9/26/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,500,000 14,303,066 5.62%, 9/8/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,000,000 45,504,848 5.65%, 7/11/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,000,000 22,963,903 Corporate Asset Funding Co., Inc.: 5.60%, 12/12/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 6,821,422 5.60%, 8/25/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,700,556 CXC, Inc.: 5.58%, 9/26/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,595,450 5.59%, 9/8/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,625,004 5.61%, 9/10/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,668,075 5.62%, 7/3/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 39,987,511 5.62%, 8/15/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000,000 17,873,550 5.62%, 9/3/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,750,222 5.63%, 7/7/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,966,000 10,955,710 5.63%, 7/9/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 29,962,467 5.67%, 8/14/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000,000 31,779,768 Enterprise Funding Corp.: 5.61%, 8/11/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,904,163 5.62%, 7/14/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,364,000 11,340,937 5.65%, 7/16/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 16,959,979 5.67%, 8/15/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,482,000 21,329,746 5.67%, 8/18/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,886,600 Falcon Asset Securitization Corp., 5.60%, 7/28/97(3) . . . . . . . . . . . . . . . . . . 50,000,000 49,790,000 New Center Asset Trust, 5.27%, 7/28/97 . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,901,188 Preferred Receivables Funding Corp.: 5.58%, 10/16/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,751,225 5.60%, 11/18/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000,000 13,695,111 5.60%, 9/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,800,000 36,405,013 5.65%, 12/8/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,497,778
14 STATEMENT OF INVESTMENTS JUNE 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- SPECIAL PURPOSE FINANCIAL (CONTINUED) Providian Mastertrust 1993-3: 5.61%, 9/10/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,500,000 $ 24,228,928 5.62%, 9/11/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000,000 10,876,360 Racers Series 1996-MM-12-3, 5.687%, 12/15/97(1)(2) . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000 Racers Series 1997-MM-1-1, 5.687%, 1/15/98(1)(2) . . . . . . . . . . . . . . . . . . . . 38,000,000 37,991,827 Sigma Finance, Inc.: 5.40%, 7/21/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,955,000 5.59%, 7/28/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,937,113 5.60%, 10/15/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,500,000 13,277,400 5.60%, 11/17/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 5,870,267 5.61%, 8/29/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,862,088 5.62%, 9/10/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,600,000 15,427,091 5.63%, 9/5/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,793,567 5.64%, 8/28/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 39,636,533 5.64%, 9/3/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000,000 8,909,760 5.65%, 12/15/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,000,000 12,659,274 5.68%, 7/25/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000,000 17,931,840 5.69%, 11/26/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,532,156 5.70%, 8/19/97(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,844,833 SMM Trust 1996-B, 5.738%, 8/4/97(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000 SMM Trust 1997-I, 5.687%, 5/29/98(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 30,000,000 Tiers Series DCMT 1996-A, 5.717%, 10/15/97(1)(2) . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000 -------------- 1,374,795,929 -------------- Total Short-Term Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,376,772,323 -------------- U.S. GOVERNMENT AGENCIES-0.9% Federal Home Loan Bank, 5.67%, 8/1/97(1) . . . . . . . . . . . . . . . . . . . . . . . . 60,000,000 59,995,504 Student Loan Marketing Assn., 5.82%, 1/23/98 . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,998,307 -------------- Total U.S. Government Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,993,811 --------------
15 STATEMENT OF INVESTMENTS JUNE 30, 1997 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ -------------- FOREIGN GOVERNMENT OBLIGATIONS-1.9% Bayerische Landesbank Girozentrale, 5.80%, 7/29/97(1) . . . . . . . . . . . . . . . . . . $ 30,000,000 $ 30,000,000 Swedish Export Credit Corp., 5.36%, 7/9/97 . . . . . . . . . . . . . . . . . . . . . . . 45,000,000 44,946,400 Westdeutsche Landesbank Girozentrale, 5.60%, 9/11/97 . . . . . . . . . . . . . . . . . . 50,000,000 49,440,000 Westdeutsche Landesbank Girozentrale, 5.61%, 8/29/97 . . . . . . . . . . . . . . . . . . 25,000,000 24,770,146 Westdeutsche Landesbank Girozentrale, guaranteeing commercial paper of: Unibanco-Uniao de Brancos Brasileiros S.A.-Grand Cayman-Series A, 5.61%, 9/8/97 . . . 25,000,000 24,731,187 -------------- Total Foreign Government Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . 173,887,733 -------------- Total Investments, at Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96.9% 8,779,329,984 ------ -------------- Other Assets Net of Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 283,636,897 ------ -------------- Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $9,062,966,881 ====== ==============
Short-term notes, bankers' acceptances, direct bank obligations and letters of credit are generally traded on a discount basis; the interest rate is the discount rate received by the Trust at the time of purchase. Other securities normally bear interest at the rates shown. 1. Floating or variable rate obligation. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on June 30, 1997. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice. Maturity date shown represents effective maturity based on variable rate and, if applicable, demand feature. 2. Restricted securities which are considered illiquid, by virtue of the absence of a readily available market or because of legal or contractual restrictions on resale, amount to $427,213,563, or 4.71% of the Trust's net assets. The Trust may not invest more than 10% of its net assets (determined at the time of purchase) in illiquid securities. 3. Restricted securities, including those issued in exempt transactions without registration under the Securities Act of 1933 (the Act), amounting to $1,476,842,989, or 16.30% of the Trust's net assets, have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees. See accompanying Notes to Financial Statements. 16 STATEMENT OF ASSETS AND LIABILITIES June 30, 1997 Centennial Money Market Trust ASSETS: Investments, at value-see accompanying statement . . . . . . . . . . . . . . . . . . . . . . . . . . $8,779,329,984 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794,723 Receivables: Shares of beneficial interest sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373,361,415 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,187,765 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,687 -------------- Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,177,754,574 -------------- LIABILITIES: Payables and other liabilities: Shares of beneficial interest redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,776,201 Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,441,882 Service plan fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530,348 Trustees' fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,008 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,035,254 -------------- Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,787,693 -------------- NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,062,966,881 ============== COMPOSITION OF NET ASSETS: Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,062,904,841 Accumulated net realized gain on investment transactions . . . . . . . . . . . . . . . . . . . . . . 62,040 -------------- NET ASSETS-applicable to 9,062,904,841 shares of beneficial interest outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,062,966,881 ============== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE . . . . . . . . . . . . . . . . . . . $1.00
See accompanying Notes to Financial Statements. 17 STATEMENT OF OPERATIONS For the Year Ended June 30, 1997 Centennial Money Market Trust INVESTMENT INCOME-interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $443,824,705 ------------ EXPENSES: Management fees-Note 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,755,568 Service plan fees-Note 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,003,021 Transfer and shareholder servicing agent fees-Note 3 . . . . . . . . . . . . . . . . . . 5,938,571 Registration and filing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,077,649 Custodian fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 812,579 Shareholder reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 774,249 Legal and auditing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,976 Tustees' fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,237 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,846 ------------ Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,546,696 ------------ Less assumption of expenses by Centennial Asset Management Corp. . . . . . . . . . . . (4,890,123) ------------ Net Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,656,573 ------------ NET INVESTMENT INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390,168,132 NET REALIZED GAIN ON INVESTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,890 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . $390,181,022 ============
================================================================================ STATEMENTS OF CHANGES IN NET ASSETS
Year Ended June 30, -------------------------------------- 1997 1996 -------------- -------------- OPERATIONS: Net investment income . . . . . . . . . . . . . . . . . . . . . . . . $ 390,168,132 $ 303,412,547 Net realized gain . . . . . . . . . . . . . . . . . . . . . . . . . . 12,890 265,465 -------------- -------------- Net increase in net assets resulting from operations . . . . . . . . 390,181,022 303,678,012 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS . . . . . . . . . . . . . (390,443,351) (303,849,237) BENEFICIAL INTEREST TRANSACTIONS: Net increase in net assets resulting from beneficial interest transactions-Note 2 . . . . . . . . . . . . . . . . . . . . . . . 2,310,345,177 1,940,862,519 -------------- -------------- NET ASSETS: Total increase . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,310,082,848 1,940,691,294 Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . 6,752,884,033 4,812,192,739 -------------- ------------- End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,062,966,881 $6,752,884,033 ============== ==============
See accompanying Notes to Financial Statements. 18 \FINANCIAL HIGHLIGHTS Centennial Money Market Trust
Year Ended June 30, -------------------------------------------------------- 1997 1996 1995 1994 1993 ----- ---- ---- ---- ----- PER SHARE OPERATING DATA: Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . $1.00 $1.00 $1.00 $1.00 $1.00 Income from investment operations-net investment income and net realized gain . . . . . . . . . . . .05 .05 .05 .03 .03 Dividends and distributions to shareholders . . . . . (.05) (.05) (.05) (.03) (.03) ---- ---- ---- ---- ---- Net asset value, end of period . . . . . . . . . . . $1.00 $1.00 $1.00 $1.00 $1.00 ===== ===== ===== ===== ===== TOTAL RETURN, AT NET ASSET VALUE(1) . . . . . . . . . . . . . . . . 4.97% 5.11% 5.21% 2.82% 2.91% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in millions) . . . . . . . $9,063 $6,753 $4,812 $2,559 $1,991 Average net assets (in millions) . . . . . . . . . . $8,033 $6,077 $3,342 $2,346 $1,701 Ratios to average net assets: Net investment income . . . . . . . . . . . . . . . 4.86% 4.99% 5.01% 2.84% 2.82% Expenses, before voluntary assumption by the Manager . . . . . . . . . . . . 0.73% 0.74% 0.77% 0.81% 0.83% Expenses, net of voluntary assumption by the Manager . . . . . . . . . . . . 0.67% 0.69% 0.73% 0.76% 0.78%
1. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns reflect changes in net investment income only. See accompanying Notes to Financial Statements. 19 NOTES TO FINANCIAL STATEMENTS Centennial Money Market Trust 1. SIGNIFICANT ACCOUNTING POLICIES Centennial Money Market Trust (the Trust) is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Trust's investment objective is to seek the maximum current income that is consistent with low capital risk and the maintenance of liquidity. The Trust seeks to achieve this objective by investing in "money market" securities meeting specified quality standards. The Trust's investment adviser is Centennial Asset Management Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). The following is a summary of significant accounting policies consistently followed by the Trust. Investment Valuation-Portfolio securities are valued on the basis of amortized cost, which approximates market value. Repurchase Agreements-The Trust requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the underlying securities is required to be at least 102% of the resale price at the time of purchase. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Trust may be delayed or limited. Federal Taxes-The Trust intends to continue to comply with provisions of the Internal Revenue code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. Therefore, no federal income or excise tax provision is required. Distributions to Shareholders-The Trust intends to declare dividends from net investment income each day the New York stock Exchange is open for business and pay such dividends monthly. To effect its policy of maintaining a net asset value of $1.00 per share, the Trust may withhold dividends or make distributions of net realized gains. Other-Investment transactions are accounted for on the date the investments are purchased or sold (trade date). Realized gains and losses on investments are determined on an identified cost basis, which is the same basis used for federal income tax purposes. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. 20 NOTES TO FINANCIAL STATEMENTS (Continued) Centennial Money Market Trust 2. SHARES OF BENEFICIAL INTEREST The Trust has authorized an unlimited number of no par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
Year Ended June 30, 1997 Year Ended June 30, 1996 ------------------------------------ ------------------------------------- Shares Amount Shares Amount --------------- --------------- -------------- ---------------- Sold . . . . . . . . . . . . . 27,792,751,077 $ 27,792,751,077 21,158,638,888 $ 21,158,638,888 Dividends and distributions reinvested . . . . . . . . . 378,092,268 378,092,268 297,883,433 297,883,433 Redeemed . . . . . . . . . . . (25,860,498,168) (25,860,498,168) (19,515,659,802) (19,515,659,802) --------------- ---------------- --------------- ---------------- Net increase . . . . . . . . 2,310,345,177 $ 2,310,345,177 1,940,862,519 $ 1,940,862,519 =============== ================ =============== ================
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust which provides for a fee of 0.50% of the first $250 million of net assets; 0.475% of the next $250 million of net assets; 0.45% of the next $250 million of net assets; 0.425% of the next $250 million of net assets; and 0.40% on net assets in excess of $1 billion. The Manager has agreed to reimburse the Trust if aggregate expenses (with specified exceptions) exceed the lesser of 1.5% of the first $30 million of average annual net assets of the trust, plus 1% of average annual net assets in excess of $30 million; or 25% of the total annual investment income of the Trust. Independently of the investment advisory agreement, the Manager has voluntarily agreed to waive a portion of the management fee otherwise payable to it by the Trust to the extent necessary to: (a) permit the Trust to have a seven-day yield equal to that of Daily Cash Accumulation Fund, Inc., and (b) to reduce, on an annual basis, the management fee paid on the average net assets of the Trust in excess of $1 billion from 0.40% to: 0.40% of average net assets in excess of $1 billion but less than $1.25 billion; 0.375% of average net assets in excess of $1.25 billion but less than $1.50 billion; 0.35% of average net assets in excess of $1.50 billion but less than $2 billion; and 0.325% of average net assets in excess of $2 billion. This undertaking became effective as of December 1, 1991, and may be modified or terminated by the Manager at any time. 21 NOTES TO FINANCIAL STATEMENTS (Continued) Centennial Money Market Trust Shareholder Services, Inc. (SSI), a subsidiary of OFI, is the transfer and shareholder servicing agent for the Trust, and for other registered investment companies. SSI's total costs of providing such services are allocated ratably to these companies. Under an approved service plan, the Trust may expend up to 0.20% of its net assets annually to reimburse certain securities dealers and other financial institutions and organizations for costs incurred in distributing Trust shares. 22 INDEPENDENT AUDITORS' REPORT Centennial Money Market Trust The Board of Trustees and Shareholders of Centennial Money Market Trust: We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Centennial Money Market Trust as of June 30, 1997, the related statement of operations for the year then ended, the statements of changes in net assets for the years ended June 30, 1997 and 1996, and the financial highlights for the period July 1, 1992 to June 30, 1997. These financial statements and financial highlights are the responsibility of the Trust's Management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at June 30, 1997 by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of Centennial Money Market Trust at June 30, 1997, the results of its operations, the changes in its net assets, and the financial highlights for the respective stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado July 22, 1997 ================================================================================ FEDERAL INCOME TAX INFORMATION (Unaudited) Centennial Money Market Trust In early 1998, shareholders will receive information regarding all dividends and distributions paid to them by the Trust during calendar year 1997. Regulations of the U.S. Treasury Department require the Trust to report this information to the Internal Revenue Service. None of the dividends paid by the Trust during the fiscal year ended June 30, 1997 are eligible for the corporate dividend-received deduction. The foregoing information is presented to assist shareholders in reporting distributions received from the Trust to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax adviser for specific guidance. 23 CENTENNIAL MONEY MARKET TRUST Officers and Trustees James C. Swain, Chairman and Chief Executive Officer Bridget A. Macaskill, Trustee and President Robert G. Avis, Trustee William A. Baker, Trustee Charles Conrad, Jr., Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Ned M. Steel, Trustee George C. Bowen, Vice President, Treasurer and Assistant Secretary Andrew J. Donohue, Vice President and Secretary Dorothy G. Warmack, Vice President Carol E. Wolf, Vice President Arthur J. Zimmer, Vice President Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary Investment Adviser and Distributor Centennial Asset Management Corporation Transfer and Shareholder Servicing Agent Shareholder Services, Inc. Custodian of Portfolio Securities Citibank, N.A. Independent Auditors Deloitte & Touche LLP Legal Counsel Myer, Swanson, Adams & Wolf, P.C. This is a copy of a report to shareholders of Centennial Money Market Trust. This report must be preceded or accompanied by a Prospectus of Centennial Money Market Trust. For material information concerning the Trust, see the Prospectus. For shareholder servicing call: 1-800-525-9310 (in U.S.) 303-768-3200 (outside U.S.) Or write: Shareholder Services, Inc. P.O. Box 5143 Denver, CO 80217-5143 RA0150.001.0697 [RECYCLED LOGO] Printed on recycled paper 1997 ANNUAL REPORT CENTENNIAL MONEY MARKET TRUST JUNE 30, 1997 24 1 DAILY CASH ACCUMULATION FUND, INC. Officers and Directors James C. Swain, Chairman and Chief Executive Officer Bridget A. Macaskill, Director and President Robert G. Avis, Director William A. Baker, Director Charles Conrad, Jr., Director Jon S. Fossel, Director Sam Freedman, Director Raymond J. Kalinowski, Director C. Howard Kast, Director Robert M. Kirchner, Director Ned M. Steel, Director George C. Bowen, Vice President, Treasurer and Assistant Secretary Andrew J. Donohue, Vice President and Secretary Dorothy G. Warmack, Vice President Carol E. Wolf, Vice President Arthur J. Zimmer, Vice President Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary Investment Adviser And Distributor Centennial Asset Management Corporation Transfer and Shareholder Servicing Agent Shareholder Services, Inc. Custodian of Portfolio Securities Citibank, N.A. Independent Auditors Deloitte & Touche LLP Legal Counsel Myer, Swanson, Adams & Wolf, P.C. This is a copy of a report to shareholders of Daily Cash Accumulation Fund, Inc. This report must be preceded or accompanied by a Prospectus of Daily Cash Accumulation Fund, Inc. For material information concerning the Fund, see the Prospectus. For shareholder servicing call: 1-800-525-9310 (in U.S.) 303-671-3200 (outside U.S.) Or write: Shareholder Services, Inc. P.O. Box 5143 Denver, CO 80217-5143 RA0140.001.1296 [Recycled Paper Logo] Printed on recycled paper 2 DEAR SHAREHOLDER: The second half of 1996 was a period of uncertainty in the fixed income markets, largely due to investor fears of rapid economic growth and accelerating inflation. The 30-year Treasury rates rose above 7% in the second quarter and remained relatively unchanged until the end of the third quarter. That's when negative investor sentiment that led to the market downturn in June and July began to subside. The swing away from inflationary fears seemed complete in October with the release of economic indicators showing a firm dollar, low inflation and slow growth. When the Federal Reserve responded to these indicators with another decision to leave rates alone, it appeared that concerns about rapid growth had been overblown, and interest rates fell in response. The status quo outcome of the presential election also aided the decline in rates, and the bond market experienced one of the most substantial post-election rallies in recent history. With continued, substainable non-inflationary growth of around 2% to 2.5%, and long-term rates at their lowest levels since April, the economy seems to have settled into a comfortable path of neither too little nor too much growth. This decline in long-term Treasury rates over the past few months has caused the return on money market instruments to decline marginally, but the positive inflationary situation has helped to keep yields relatively strong. Money market fund yields are usually between three and five percentage points less than the yields on long-term bonds, and typically one percentage point above inflation. Assuming that the annual inflation rate is about 2.5%, money market yields would normally be about 3.5%, while longer-term yields might be as high as 5.5%. However, the difference between money market yields and inflation is currently greater than this formula would suggest. Part of the reason for this irregularity is the successful way in which the Federal Reserve Board has fought inflation. As we head into 1997, money market funds continue to be a highly liquid opportunity to earn steady income while protecting principal. This year, money market funds turned out to be a good investment choice for the income-oriented investor. For the twelve months ended December 31, 1996, the Fund's compounded annualized yield was 4.94%. Without compounding, the corresponding yield was 4.82%. The seven-day annualized yields with and without compounding on December 31, 1996 were 4.98% and 4.86%, respectively.(1) 3 An investment in the Fund is neither insured nor guaranteed by the U.S. government, and there is no assurance that the Fund will maintain a stable $1.00 share price in the future. Thank you for your confidence in Daily Cash Accumulation Fund, Inc. We look forward to helping you reach your investment goals in the future. Sincerely, /s/ James C. Swain - -------------------- James C. Swain Chairman Daily Cash Accumulation Fund, Inc. /s/ Bridget A. Macaskill - ------------------------ Bridget A. Macaskill President Daily Cash Accumulation Fund, Inc. January 22, 1997 1. Compounded yields assume reinvestment of dividends. Past performance is not indicative of future results. 4 STATEMENT OF INVESTMENTS December 31, 1996 Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- BANKERS' ACCEPTANCES-0.1% First National Bank of Boston, 5.30%, 5/2/97 (Cost $4,910,931) ....................... $ 5,000,000 $ 4,910,931 ----------- CERTIFICATES OF DEPOSIT-1.6% DOMESTIC CERTIFICATES OF DEPOSIT-0.4% LaSalle National Bank: 5.51%, 4/4/97 ................................ 8,000,000 8,000,000 5.55%, 2/11/97 ............................... 7,000,000 7,000,000 ----------- 15,000,000 ----------- YANKEE CERTIFICATES OF DEPOSIT-1.2% Societe Generale North America, Inc.: 5.45%, 2/10/97 ............................... 8,000,000 8,000,087 5.50%, 4/21/97 ............................... 5,000,000 5,000,000 5.55%, 2/6/97 ................................ 10,000,000 10,000,000 5.62%, 3/25/97 ............................... 8,000,000 8,001,957 5.92%, 9/17/97 ............................... 10,000,000 10,020,031 ----------- 41,022,075 ----------- Total Certificates of Deposit (Cost $56,022,075) 56,022,075 ----------- DIRECT BANK OBLIGATIONS-4.2% ABN Amro Bank Canada, 5.43%, 1/10/97................ 10,000,000 9,986,425 Bayerische Vereinsbank AG, 5.35%, 4/10/97........... 8,150,000 8,030,093 FCC National Bank, 5.55%, 2/14/97................... 10,000,000 10,000,000 First National Bank of Boston: 5.44%, 1/10/97 ................................... 5,000,000 5,000,000 5.44%, 1/13/97 ................................... 5,000,000 5,000,000 5.47%, 2/12/97 ................................... 10,000,000 10,000,000 5.47%, 2/21/97 ................................... 10,000,000 10,000,000 5.47%, 4/3/97 .................................... 7,000,000 7,000,000 5.50%, 3/14/97 ................................... 10,000,000 10,000,000 5.50%, 3/17/97 ................................... 15,000,000 15,000,000 5.50%, 4/4/97 .................................... 5,000,000 5,000,000 Huntington National Bank:........................... 5.35%, 1/2/97 .................................... 10,000,000 10,000,000 5.35%, 1/8/97 .................................... 7,000,000 7,000,000 5.53%, 2/3/97 .................................... 15,000,000 15,001,002
3 5 STATEMENT OF INVESTMENTS December 31, 1996 (continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- DIRECT BANK OBLIGATIONS-4.2% (CONTINUED) National Westminster Bank of Canada: 5.36%, 4/7/97 ................................. $ 7,000,000 $ 6,899,946 5.40%, 2/18/97 ................................ 5,000,000 4,964,000 Societe Generale North America, Inc.: 5.30%, 4/11/97 ................................ 5,000,000 4,926,389 5.38%, 2/7/97 ................................. 7,000,000 6,961,294 ------------ Total Direct Bank Obligations (Cost $150,769,149) 150,769,149 ------------ LETTERS OF CREDIT-6.0% Bank of America NT & SA, guaranteeing commercial paper of: Formosa Plastics Corp., USA-Series A, 5.34%, 3/21/97 5,000,000 4,941,408 Hyundai Motor Finance Co., 5.37%, 4/21/97 5,000,000 4,917,958 Bank One, Cleveland, guaranteeing commercial paper of: Capital One Funding Corp.-Series 1995F, 5.85%, 1/2/97(1) 10,650,000 10,650,000 Capital One Funding Corp.-Series 1995F, 5.85%, 1/2/97(1)(2) 8,900,000 8,900,000 Barclays Bank PLC, guaranteeing commercial paper of: Banco Bradesco S.A.-Grand Cayman Branch: Series A, 5.31%, 4/28/97 ............ 11,000,000 10,810,167 Series A, 5.35%, 4/18/97 ............ 5,000,000 4,920,493 Series B, 5.33%, 5/20/97 ............ 5,000,000 4,897,101 Banco Real S.A., Grand Cayman Branch: Series A, 5.32%, 4/22/97 ............ 5,000,000 4,917,983 Series A, 5.37%, 4/21/97 ............ 10,000,000 9,835,917 Petroleo Brasileiro, S.A.-Petrobras II: Series C, 5.35%, 4/1/97 ............. 5,000,000 4,933,125 Series C, 5.38%, 4/3/97 ............. 5,000,000 4,931,256 Petroleo Brasileiro, S.A.-Petrobras: Series A, 5.30%, 5/5/97 ............. 5,000,000 4,908,722 Series A, 5.31%, 5/6/97 ............. 15,000,000 14,723,438 Series A, 5.31%, 5/7/97 ............. 5,000,000 4,907,075 Series A, 5.37%, 4/7/97 ............. 5,000,000 4,928,400 Series B, 5.32%, 6/3/97 ............. 5,000,000 4,886,950 Series B, 5.40%, 4/9/97 ............. 10,000,000 9,853,000
4 6 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ----------- ----------- LETTERS OF CREDIT-6.0% (CONTINUED) Bayerische Vereinsbank AG, guaranteeing commercial paper of: Banco Rio de la Plata S.A.: Series A, 5.40%, 1/21/97 ............................ $ 5,000,000 $4,985,000 Series A, 5.43%, 1/17/97 ............................ 10,000,000 9,975,867 Series A, 5.40%, 1/22/97 ............................ 5,000,000 4,984,250 Galicia Funding Corp.: Series A, 5.36%, 3/3/97(3)........................... 5,000,000 4,954,589 Series B, 5.35%, 3/3/97(3)........................... 5,000,000 4,954,674 Series B, 5.45%, 3/4/97(3)........................... 10,000,000 9,907,000 Credit Suisse, guaranteeing commercial paper of: COSCO (Cayman) Co., Ltd., 5.38%, 3/14/97............. 15,000,000 14,838,600 Societe Generale, guaranteeing commercial paper of: Girsa Funding Corp., 5.32%, 4/3/97(3)................ 9,000,000 8,877,640 Nacional Financiera, SNC: Series A, 5.31%, 2/24/97........................... 20,000,000 19,840,700 Series A, 5.44%, 1/8/97............................ 5,000,000 4,994,711 Series A, 5.44%, 1/9/97............................ 5,000,000 4,993,956 Series B, 5.33%, 3/3/97............................ 5,000,000 4,954,843 ----------- Total Letters of Credit (Cost $217,124,823)............ 217,124,823 ----------- SHORT-TERM NOTES-86.7% AUTOMOTIVE-0.8% BMW U.S. Capital Corp.: 5.31%, 2/24/97 ................................... 10,000,000 9,920,350 5.32%, 2/20/97 ................................... 20,000,000 19,852,222 ----------- 29,772,572 ----------- BANKS-0.7% Bankers Trust Co., New York, 5.35%, 11/26/97(1)............ 10,000,000 9,993,799 CoreStates Capital Corp.: 5.36%, 6/27/97 .......................................... 5,000,000 4,868,233 5.47%, 7/14/97(1)........................................ 5,000,000 5,000,000 5.70%, 6/27/97(1)........................................ 5,000,000 5,000,000 ----------- 24,862,032 -----------
5 7 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- BEVERAGES-3.2% Coca-Cola Enterprises, Inc.: 5.31%, 3/19/97(3) .......................................... $12,000,000 $11,863,453 5.31%, 3/7/97(3) ........................................... 27,000,000 26,739,910 5.32%, 2/26/97(3) .......................................... 15,000,000 14,875,867 5.32%, 2/27/97(3) .......................................... 10,000,000 9,915,767 5.33%, 2/19/97(3) .......................................... 15,000,000 14,891,179 5.34%, 1/31/97(3) .......................................... 17,000,000 16,924,350 5.35%, 3/11/97(3) .......................................... 5,000,000 4,948,729 5.35%, 3/18/97(3) .......................................... 8,000,000 7,909,644 5.35%, 3/24/97(3) .......................................... 7,000,000 6,914,697 ----------- 114,983,596 ----------- BROKER/DEALERS-12.5% CS First Boston, Inc.: 5.31%, 1/30/97 ............................................ 7,000,000 6,970,057 5.31%, 2/20/97 ............................................ 15,000,000 14,889,375 5.33%, 2/13/97(3) ......................................... 25,000,000 24,840,661 5.35%, 2/12/97(3) ......................................... 10,000,000 9,937,642 5.38%, 3/4/97(1)(4) ....................................... 10,000,000 10,000,000 5.58%, 1/21/97(1)(4) ...................................... 10,000,000 10,000,000 Goldman Sachs Group, L.P.: 5.31%, 3/21/97 ............................................ 23,000,000 22,731,992 5.31%, 5/5/97 ............................................. 15,000,000 14,725,650 5.38%, 3/14/97 ............................................ 10,000,000 9,892,400 5.42%, 1/17/97 ............................................ 10,000,000 9,975,911 5.43%, 1/13/97 ............................................ 30,000,000 29,945,700 5.50%, 4/4/97 ............................................. 15,000,000 14,786,875 8.25%, 1/2/97 ............................................. 52,550,000 52,539,173 Merrill Lynch & Co., Inc.: 5.31%, 2/28/97 ............................................ 5,000,000 4,957,225 5.33%, 1/2/97 ............................................. 20,000,000 19,997,036 5.33%, 1/24/97 ............................................ 20,000,000 19,931,894 5.33%, 3/10/97 ............................................ 20,000,000 19,798,644 5.35%, 1/28/97 ............................................ 5,000,000 4,979,937 5.40%, 1/31/97(1) ......................................... 20,000,000 20,000,000 5.40%, 2/10/97 ............................................ 12,000,000 11,928,000 5.42%, 1/23/97 ............................................ 35,000,000 34,884,897 5.42%, 12/19/97(1) ........................................ 15,000,000 14,999,534 5.43%, 10/24/97(1) ........................................ 10,000,000 9,998,378 5.44%, 1/21/97 ............................................ 10,000,000 9,969,778
6 8 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- BROKER/DEALERS-12.5% (CONTINUED) Morgan Stanley Group, Inc.: 5.26%, 6/27/97(1) ...................................... $36,815,000 $ 36,815,000 5.41%, 2/3/97 .......................................... 10,000,000 9,950,408 ----------- 449,446,167 ----------- BUILDING MATERIALS-0.1% Compagnie de Saint-Gobain, 5.38%, 4/23/97.................. 5,000,000 4,916,311 ----------- CHEMICALS-0.2% Monsanto Co., 5.30%, 1/27/97(3)............................ 6,900,000 6,873,588 ----------- COMMERCIAL FINANCE-12.3% CIT Group Holdings, Inc.: 5.31%, 1/24/97 .......................................... 15,000,000 14,949,112 5.33%, 11/20/97(1) ...................................... 15,000,000 14,989,942 5.35%, 5/1/97(1) ........................................ 10,000,000 9,996,244 5.35%, 6/11/97(1) ....................................... 10,000,000 9,994,762 5.37%, 9/17/97(1) ....................................... 20,000,000 19,989,710 5.67%, 3/1/98(1) ........................................ 38,500,000 38,500,000 Countrywide Home Loans: 5.33%, 1/23/97 .......................................... 24,000,000 23,921,827 5.33%, 2/19/97 .......................................... 5,000,000 4,963,726 5.33%, 3/3/97 ........................................... 5,000,000 4,954,843 5.34%, 1/8/97 ........................................... 9,000,000 8,990,655 5.34%, 3/12/97 .......................................... 5,000,000 4,948,083 5.36%, 3/5/97 ........................................... 16,000,000 15,849,920 5.37%, 3/4/97 ........................................... 10,000,000 9,907,517 FINOVA Capital Corp.: 5.37%, 2/18/97 .......................................... 3,000,000 2,978,520 5.37%, 2/24/97 .......................................... 10,000,000 9,919,450 5.37%, 2/28/97 .......................................... 7,000,000 6,939,326 5.38%, 1/7/97 ........................................... 8,000,000 7,992,827 5.38%, 2/20/97 .......................................... 5,000,000 4,962,639 5.40%, 1/15/97 .......................................... 5,000,000 4,989,500 5.40%, 2/27/97 .......................................... 32,000,000 31,727,682 5.43%, 2/26/97 .......................................... 20,000,000 19,831,067 5.49%, 2/5/97 ........................................... 5,000,000 4,973,312 5.53%, 1/24/97 .......................................... 5,000,000 4,982,335 5.68%, 1/17/97 .......................................... 3,000,000 2,992,427 6.06%, 2/21/97(1) ....................................... 15,000,000 15,000,000
7 9 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- COMMERCIAL FINANCE-12.3% (CONTINUED) Heller Financial, Inc.: 5.41%, 3/17/97 ............................................. $20,000,000 $19,774,479 5.42%, 2/6/97 .............................................. 7,000,000 6,962,060 5.43%, 1/14/97 ............................................. 15,000,000 14,970,587 5.45%, 3/20/97 ............................................. 5,000,000 4,940,958 5.45%, 3/21/97 ............................................. 2,000,000 1,976,081 5.46%, 10/1/97(1) .......................................... 20,000,000 19,997,008 5.46%, 10/10/97(1) ......................................... 13,000,000 12,997,991 5.55%, 4/10/97 ............................................. 7,000,000 6,893,162 5.55%, 4/2/97 .............................................. 9,500,000 9,366,723 5.59%, 12/18/97(1) ......................................... 15,000,000 15,000,000 5.66%, 1/15/97 ............................................. 10,000,000 10,000,518 5.69%, 3/28/97(1) .......................................... 20,000,000 20,001,439 ----------- 442,126,432 ----------- COMPUTER SOFTWARE-0.3% First Data Corp.: 5.37%, 6/10/97 ............................................ 5,000,000 4,880,667 5.40%, 2/25/97 ............................................ 5,000,000 4,958,750 ----------- 9,839,417 ----------- CONGLOMERATES-1.0% Mitsubishi International Corp.: 5.34%, 1/8/97 ............................................... 9,500,000 9,490,136 5.43%, 2/7/97 ............................................... 19,000,000 18,893,964 5.44%, 2/14/97 .............................................. 7,800,000 7,748,139 ---------- 36,132,239 ----------- CONSUMER FINANCE-3.0% American Express Corp., 5.32%, 1/3/97 ....................... 15,000,000 14,995,567 Island Finance Puerto Rico, Inc.: 5.32%, 3/11/97 .............................................. 13,700,000 13,560,306 5.34%, 3/24/97 .............................................. 5,100,000 5,037,967 5.36%, 1/15/97 .............................................. 8,000,000 7,983,324 5.39%, 3/25/97 .............................................. 16,500,000 16,294,955 5.44%, 3/20/97 .............................................. 10,000,000 9,882,133
8 10 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- CONSUMER FINANCE-3.0% (CONTINUED) Sears Roebuck Acceptance Corp.: 5.31%, 3/3/97 ........................................... $25,000,000 $ 24,775,063 5.32%, 3/31/97 .......................................... 9,000,000 8,881,630 5.43%, 1/16/97 .......................................... 5,000,000 4,988,688 ------------ 106,399,633 ------------ DIVERSIFIED FINANCIAL-14.5% Associates Corp. of North America, 7.28%, 1/2/97 .......... 75,000,000 74,984,833 Ford Motor Credit Co.: 5.32%, 1/10/97 .......................................... 15,000,000 14,980,050 5.32%, 1/6/97 ........................................... 24,300,000 24,282,045 5.32%, 1/8/97 ........................................... 13,600,000 13,585,932 5.32%, 1/9/97 ........................................... 15,000,000 14,982,267 5.40%, 1/2/97 ........................................... 75,000,000 74,985,167 5.57%, 5/12/97(1) ....................................... 15,000,000 15,001,935 General Electric Capital Corp.: 5.31%, 1/15/97 .......................................... 15,000,000 14,969,025 5.50%, 1/31/97 .......................................... 5,000,000 4,977,083 General Electric Capital Services, 7.12%, 1/2/97 .......... 78,000,000 77,984,573 General Motors Acceptance Corp.: 5.35%, 1/8/97 ........................................... 21,000,000 20,978,154 5.35%, 3/3/97 ........................................... 5,000,000 4,954,674 5.38%, 2/18/97 .......................................... 10,000,000 9,928,267 5.41%, 4/10/97 .......................................... 5,000,000 5,058,018 5.41%, 4/7/97 ........................................... 27,975,000 27,569,817 5.45%, 1/16/97 .......................................... 10,000,000 9,977,292 5.45%, 2/12/97 .......................................... 13,000,000 12,917,342 5.45%, 2/12/97 .......................................... 17,000,000 16,891,908 5.45%, 2/4/97 ........................................... 8,900,000 8,854,190 5.45%, 2/6/97 ........................................... 10,000,000 9,945,500 5.45%, 4/21/97(1) ....................................... 15,000,000 14,991,777 5.47%, 2/14/97 .......................................... 18,500,000 18,376,317 5.48%, 3/11/97 .......................................... 5,000,000 4,947,483 5.48%, 3/26/97 .......................................... 5,025,000 4,960,747 Household Finance Corp., 5.30%, 2/24/97.................... 15,000,000 14,880,750 Transamerica Finance Corp., 5.33%, 3/17/97 ................ 5,000,000 4,944,479 ---------- 520,909,625 -----------
9 11 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- --------- ELECTRICAL EQUIPMENT-0.4% Xerox Corp., 5.30%, 1/10/97 ............................. $15,000,000 $14,980,125 ----------- ELECTRONICS-2.3% Avnet, Inc., 5.34%, 3/14/97 .............................. 5,000,000 4,946,600 Mitsubishi Electric Finance America, Inc.: 5.32%, 2/21/97(3) ...................................... 10,000,000 9,924,633 5.33%, 1/30/97(3) ...................................... 16,285,000 16,214,929 5.35%, 1/15/97(3) ...................................... 10,000,000 9,979,194 5.36%, 2/5/97(3) ....................................... 25,000,000 24,869,722 5.37%, 1/3/97(3) ....................................... 16,734,000 16,729,008 ----------- 82,664,086 ----------- ENVIRONMENTAL-0.1% WMX Technologies, Inc., 5.36%, 4/18/97(3).................. 5,000,000 4,920,344 ----------- HEALTHCARE/DRUGS-0.1% Sandoz Corp., 5.30%, 1/23/97(3)............................ 5,000,000 4,983,806 ----------- HEALTHCARE/SUPPLIES & SERVICES-0.5% American Home Products, 5.33%, 1/10/97(3)................. 10,000,000 9,986,675 Sherwood Medical Co., 5.32%, 1/24/97(3).................... 7,000,000 6,976,208 ----------- 16,962,883 ----------- INDUSTRIAL SERVICES-0.4% Atlas Copco AB, 5.30%, 2/24/97(3)......................... 5,000,000 4,960,250 PHH Corp., 5.79%, 3/26/97(1).............................. 10,000,000 9,998,653 ----------- 14,958,903 ----------- INSURANCE-6.8% Allstate Life Insurance Co., 5.38%, 1/3/97(1)............. 10,000,000 10,000,000 General American Life Insurance Co., 5.58%, 1/3/97(1)..... 30,000,000 30,000,000 Jackson National Life: 5.39%, 1/3/97(1) ....................................... 15,000,000 15,000,000 5.40%, 1/3/97(1) ....................................... 30,000,000 30,000,000 Pacific Mutual Life Insurance Co., 5.57%, 1/2/97(1)(4).....50,000,000 50,000,000 Protective Life Insurance Co., 5.52%, 1/26/97(1)(4)........20,000,000 20,000,000
10 12 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- INSURANCE-6.8% (CONTINUED) TransAmerica Life Insurance & Annuity Co.: 5.38%, 10/15/97(1) .................................. $25,000,000 $ 25,000,000 5.38%, 8/7/97(1)(4) ................................. 25,000,000 25,000,000 5.38%, 9/30/97(1) ................................... 20,000,000 20,000,000 TransAmerica Occidental Life, 5.38%, 9/29/97(1)......... 20,000,000 20,000,000 ----------- 245,000,000 ----------- LEASING & FACTORING-0.9% International Lease Finance Corp.: 5.30%, 3/7/97 ........................................ 10,000,000 9,904,306 5.33%, 2/3/97 ........................................ 13,775,000 13,707,698 5.33%, 2/7/97 ........................................ 10,000,000 9,945,219 ----------- 33,557,223 ----------- NONDURABLE HOUSEHOLD GOODS-0.1% Newell Co., 5.33%, 3/7/97(3)............................. 5,000,000 4,951,882 ----------- OIL-INTEGRATED-0.3% Repsol International Finance, 5.35%, 3/28/97............. 10,000,000 9,872,194 ----------- SAVINGS & LOANS-0.2% First Bank FSB, 5.58%, 8/29/97(1)........................ 7,000,000 6,999,550 ----------- SPECIAL PURPOSE FINANCIAL-23.1% Asset Backed Capital Finance, Inc.: 5.45%, 3/12/97(3) 15,000,000 14,841,042 5.48%, 12/15/97(1)(4) ................................. 15,000,000 14,994,921 Asset-Securitization Cooperative: 5.31%, 1/29/97(3) ..................................... 10,000,000 9,958,700 5.31%, 2/18/97(3) ..................................... 15,000,000 14,893,867 5.31%, 2/26/97(3) ..................................... 25,000,000 24,793,500 5.33%, 3/11/97(3) ..................................... 7,000,000 6,928,489 5.33%, 3/17/97(3) ..................................... 10,000,000 9,888,958 5.34%, 3/18/97(3) ..................................... 14,200,000 14,039,919 5.35%, 3/19/97(3) ..................................... 10,000,000 9,885,569
11 13 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- SPECIAL PURPOSE FINANCIAL-23.1% (CONTINUED) Beta Finance, Inc.: 5.32%, 5/12/97(1)(3) ............................................... $15,000,000 $15,001,041 5.35%, 3/17/97(3) .................................................. 10,000,000 9,888,542 5.35%, 4/17/97(3) .................................................. 15,000,000 14,763,708 Cooperative Association of Tractor Dealers, Inc., 5.50%, 2/4/97 ...... 8,200,000 8,157,406 CXC, Inc.: 5.31%, 2/25/97(3) .................................................. 15,000,000 14,878,313 5.32%, 1/7/97(3) ................................................... 15,000,000 14,986,700 5.32%, 3/12/97(3) .................................................. 10,000,000 9,896,556 5.33%, 1/8/97(3) ................................................... 20,000,000 19,979,272 5.35%, 1/16/97(3) .................................................. 5,000,000 4,988,854 5.35%, 2/5/97(3) ................................................... 25,000,000 24,869,965 Falcon Asset Securitization Corp.: 5.30%, 2/25/97(3) .................................................. 15,000,000 14,878,542 5.32%, 1/13/97(3) .................................................. 21,000,000 20,962,760 5.33%, 1/7/97(3) ................................................... 16,000,000 15,985,787 First Deposit Master Trust 1993-3: 5.32%, 1/24/97(3) .................................................. 5,000,000 4,983,006 5.32%, 2/24/97(3) .................................................. 12,000,000 11,904,240 5.32%, 2/26/97(3) .................................................. 5,900,000 5,851,174 5.32%, 2/27/97(3) .................................................. 17,000,000 16,856,803 5.35%, 1/21/97(3) .................................................. 9,200,000 9,172,656 5.35%, 3/20/97(3) .................................................. 5,000,000 4,942,042 5.65%, 1/9/97(3) ................................................... 5,000,000 4,993,944 Fleet Funding Corp.: 5.32%, 1/9/97(3) ................................................... 27,026,000 26,994,049 5.45%, 1/17/97(3) .................................................. 25,000,000 24,939,444 New Center Asset Trust: 5.35%, 4/1/97 ...................................................... 15,000,000 14,799,375 5.40%, 2/6/97 ...................................................... 15,000,000 14,919,000 5.43%, 1/29/97 ..................................................... 25,000,000 24,894,417 7.30%, 1/2/97 ...................................................... 100,000,000 99,979,722 RACERS Series 1996-MM-12-3, 5.59%, 12/15/97(1)(4) .................... 15,000,000 15,000,000
12 14 STATEMENT OF INVESTMENTS DECEMBER 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- SPECIAL PURPOSE FINANCIAL-23.1% (CONTINUED) Sheffield Receivables Corp.: 5.32%, 1/16/97 ................................................... $ 7,450,000 $ 7,433,486 5.32%, 1/16/97(3) ................................................ 10,000,000 9,977,833 5.32%, 1/6/97(3) ................................................. 26,160,000 26,140,648 Short Term Card Account Trust 1995-1, Class A1, 5.61%, 1/15/97(1)(4) 15,000,000 15,000,000 Sigma Finance, Inc.: 5.30%, 5/16/97(3) ................................................ 5,000,000 4,900,625 5.31%, 5/12/97(3) ................................................ 10,000,000 9,806,775 5.31%, 5/14/97(3) ................................................ 6,500,000 6,372,486 5.31%, 5/19/97(3) ................................................ 5,000,000 4,898,225 5.32%, 5/6/97(3) ................................................. 5,000,000 4,907,639 5.33%, 3/3/97(3) ................................................. 5,000,000 4,954,843 5.37%, 4/15/97(3) ................................................ 15,000,000 14,767,300 5.37%, 4/28/97(3) ................................................ 21,000,000 20,634,668 5.37%, 4/8/97(3) ................................................. 14,000,000 13,797,432 5.38%, 1/3/97(3) ................................................. 10,000,000 9,997,011 5.38%, 4/9/97(3) ................................................. 24,000,000 23,649,024 5.44%, 2/28/97(3) ................................................ 10,000,000 9,912,356 5.45%, 1/24/97(3) ................................................ 5,000,000 4,982,590 5.45%, 2/19/97(3) ................................................ 15,000,000 14,888,729 SMM Trust: 1996-B, 5.42%, 8/4/97(4) ......................................... 10,000,000 10,000,000 1996-I, 5.71%, 5/29/97(1)(4) ..................................... 10,000,000 10,000,000 1996-V, 5.98%, 3/26/97(4) ........................................ 10,000,000 10,000,000 TIERS Series DCMT 1996-A, 5.64%, 10/15/97(1)(4)............ ........ 5,000,000 5,000,000 ----------- 831,713,953 ----------- TELECOMMUNICATIONS-TECHNOLOGY-2.9% GTE Corp., 5.48%, 4/1/97 ............................................ 10,000,000 9,863,000 NYNEX Corp.: 5.32%, 2/21/97 .................................................... 8,000,000 7,939,707 5.33%, 2/18/97 .................................................... 5,000,000 4,964,467 5.34%, 1/27/97 .................................................... 5,000,000 4,980,717 5.34%, 3/6/97 ..................................................... 10,000,000 9,905,067 5.34%, 3/7/97 ..................................................... 7,000,000 6,932,508
13 15 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 --------- ----------- TELECOMMUNICATIONS-TECHNOLOGY-2.9% (CONTINUED) 5.35%, 1/10/97 ........................................................... $20,000,000 $ 19,973,250 5.35%, 1/24/97 ........................................................... 10,000,000 9,965,819 5.35%, 3/5/97 ............................................................ 5,000,000 4,953,363 5.42%, 1/13/97 ........................................................... 15,000,000 14,972,900 5.42%, 1/17/97 ........................................................... 9,400,000 9,377,607 -------------- 103,828,405 -------------- Total Short-Term Notes (Cost $3,121,654,966)................................ 3,121,654,966 -------------- U.S. GOVERNMENT AGENCIES-0.9% Federal Home Loan Bank, 5.68%, 8/1/97 (Cost $33,982,579)(1) ................ 34,000,000 33,982,579 -------------- FOREIGN GOVERNMENT OBLIGATIONS-1.0% Bayerische Landesbank Girozentrale, 5.07%, 7/29/97(1) ...................... 15,000,000 15,000,000 Westdeutsche Landesbank Girozentrale, guaranteeing commercial paper of: Unibanco-Uniao de Bancos Brasileiros SA-Grand Cayman-Series A, 5.37%, 4/7/97 5,000,000 4,928,400 Comision Federal de Electricidad: Series A, 5.31%, 2/18/97 ............................................... 10,000,000 9,929,200 Series A, 5.36%, 3/11/97 ............................................... 5,000,000 4,948,633 -------------- Total Foreign Government Obligations (Cost $34,806,233).... 34,806,233 -------------- Total Investments, at Value................................................. 100.5% 3,619,270,756 Liabilities in Excess of Other Assets....................................... (0.5) (17,781,686) ----- -------------- Net Assets.................................................................. 100.0% $3,601,489,070 ===== ==============
14 16 STATEMENT OF INVESTMENTS December 31, 1996 (Continued) Daily Cash Accumulation Fund, Inc. Short-term notes, direct bank obligations and letters of credit are generally traded on a discount basis; the interest rate is the discount rate received by the Fund at the time of purchase. Other securities normally bear interest at the rates shown. 1. Floating or variable rate obligation. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on December 31, 1996. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice. Maturity date shown represents effective maturity based on variable rate and, if applicable, demand feature. 2. Put obligation redeemable at full face value on the date reported. 3. Restricted securities, including those issued in exempt transactions without registration under the Securities Act of 1933 (the Act), amounting to $881,361,667, or 24.47% of the Fund's net assets, have been determined to be liquid pursuant to guidelines adopted by the Board of Directors. 4. Restricted securities which are considered illiquid, by virtue of the absence of a readily available market or because of legal or contractual restrictions on resale, amount to $194,994,921, or 5.41% of the Fund's net assets. The Fund may not invest more than 10% of its net assets (determined at the time of purchase) in illiquid securities. See accompanying Notes to Financial Statements. 15 17 STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 Daily Cash Accumulation Fund, Inc.
ASSETS: Investments, at value-see accompanying statement ............. $3,619,270,756 Cash ......................................................... 4,025,043 Receivables: Interest ................................................... 7,239,494 Shares of capital stock sold ............................... 435,693 Other ........................................................ 71,879 -------------- Total assets ............................................. 3,631,042,865 -------------- LIABILITIES: Payables and other liabilities: Shares of capital stock redeemed ........................... 28,952,775 Service plan fees .......................................... 235,143 Dividends .................................................. 8,792 Directors' fees ............................................ 4,452 Other ........................................................ 352,633 -------------- Total liabilities .......................................... 29,553,795 -------------- NET ASSETS ................................................... $3,601,489,070 ============== COMPOSITION OF NET ASSETS: Par value of shares of capital stock ......................... $ 360,135,211 Additional paid-in capital ................................... 3,241,216,896 Accumulated net realized gain on investment transactions ..... 136,963 -------------- NET ASSETS-applicable to 3,601,352,108 shares of capital stock outstanding .......................................... $3,601,489,070 ============== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE .................................................. $1.00
See accompanying Notes to Financial Statements. 16 18 STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 Daily Cash Accumulation Fund, Inc.
INVESTMENT INCOME-Interest ............................................................. $ 197,327,796 ------------- EXPENSES: Management fees-Note 3 ................................................................. 13,374,834 Service plan fees-Note 3 ............................................................... 7,123,026 Transfer and shareholder servicing agent fees-Note 3 ................................... 2,910,657 Custodian fees and expenses ............................................................ 384,166 Registration and filing fees ........................................................... 342,496 Shareholder reports .................................................................... 273,627 Legal and auditing fees ................................................................ 45,581 Directors' fees and expenses ........................................................... 30,738 Insurance expenses ..................................................................... 29,160 Other .................................................................................. 11,999 ------------- Total expenses ....................................................................... 24,526,284 Less reimbursement of expenses by Centennial Asset Management Corporation-Note 3 ..... (441,801) ------------- Net expenses ......................................................................... 24,084,483 ------------- NET INVESTMENT INCOME .................................................................. 173,243,313 NET REALIZED GAIN ON INVESTMENTS ....................................................... 2,534 ------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................... $ 173,245,847 =============
See accompanying Notes to Financial Statements. 17 19 STATEMENTS OF CHANGES IN NET ASSETS Daily Cash Accumulation Fund, Inc.
Year Ended December 31, 1996 1995 --------------- --------------- OPERATIONS: Net investment income ................................. $ 173,243,313 $ 179,893,318 Net realized gain ..................................... 2,534 664,800 --------------- --------------- Net increase in net assets resulting from operations .. 173,245,847 180,558,118 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS ........... (173,245,601) (180,522,108) CAPITAL STOCK TRANSACTIONS: Net increase in net assets resulting from capital stock transactions-Note 2 ................................. 77,763,723 565,456,928 --------------- --------------- NET ASSETS: Total increase ........................................ 77,763,969 565,492,938 Beginning of period ................................... 3,523,725,101 2,958,232,163 --------------- --------------- End of period ......................................... $ 3,601,489,070 $ 3,523,725,101 =============== ===============
See accompanying Notes to Financial Statements. 18 20 FINANCIAL HIGHLIGHTS Daily Cash Accumulation Fund, Inc.
Year Ended December 31, 1996 1995 1994 1993 1992 ---- ---- ---- ---- ---- PER SHARE OPERATING DATA: Net asset value, beginning of period ................................... $1.00 $1.00 $1.00 $1.00 $1.00 Income from investment operations-net investment income and net realized gain ................ .05 .05 .04 .03 .03 Dividends and distributions to shareholders ... (.05) (.05) (.04) (.03) (.03) ----- ----- ----- ----- ----- Net asset value, end of period ................ $1.00 $1.00 $1.00 $1.00 $1.00 ===== ===== ===== ===== ===== TOTAL RETURN, AT NET ASSET VALUE(1) .......................... 4.93% 5.47% 3.77% 2.69% 3.54% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in millions) ....... $3,602 $3,524 $2,958 $3,589 $4,061 Average net assets (in millions) .............. $3,591 $3,379 $3,378 $3,940 $4,760 RATIOS TO AVERAGE NET ASSETS: Net investment income ......................... 4.82% 5.32% 3.64% 2.67% 3.50% Expenses, before voluntary reimbursement by the Manager .............................. 0.68% 0.71% 0.74% 0.74% 0.70% Expenses, net of voluntary reimbursement by the Manager .............................. 0.67% N/A 0.73% N/A N/A
1. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods of less than one full year. See accompanying Notes to Financial Statements. 19 21 NOTES TO FINANCIAL STATEMENTS Daily Cash Accumulation Fund, Inc. 1. SIGNIFICANT ACCOUNTING POLICIES Daily Cash Accumulation Fund, Inc. (the Fund) is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Fund's investment objective is to seek the maximum current income that is consistent with low capital risk and the maintenance of liquidity. The Fund seeks to achieve this objective by investing in "money market" securities meeting specified quality standards. The Fund's investment adviser is Centennial Asset Management Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). The following is a summary of significant accounting policies consistently followed by the Fund. Investment Valuation-Portfolio securities are valued on the basis of amortized cost, which approximates market value. Federal Taxes-The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. Therefore, no federal income or excise tax provision is required. Distributions to Shareholders-The Fund intends to declare dividends from net investment income each day the New York Stock Exchange is open for business and pay such dividends monthly. To effect its policy of maintaining a net asset value of $1.00 per share, the Fund may withhold dividends or make distributions of net realized gains. Other-Investment transactions are accounted for on the date the investments are purchased or sold (trade date). Realized gains and losses on investments are determined on an identified cost basis, which is the same basis used for federal income tax purposes. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 20 22 NOTES TO FINANCIAL STATEMENTS (Continued) Daily Cash Accumulation Fund, Inc. 2. CAPITAL STOCK The Fund has authorized 15,000,000,000 shares of $0.10 par value capital stock. Transactions in shares of capital stock were as follows:
Year Ended December 31, 1996 Year Ended December 31, 1995 ------------------------------------ ------------------------------------ Shares Amount Shares Amount -------------- --------------- -------------- --------------- Sold ...................... 7,263,772,507 $ 7,263,772,507 7,320,626,109 $ 7,320,626,109 Dividends and distributions reinvested ................ 170,695,960 170,695,960 177,673,219 177,673,219 Redeemed .................. (7,356,704,744) (7,356,704,744) (6,932,842,400) (6,932,842,400) -------------- --------------- -------------- --------------- Net increase .............. 77,763,723 $ 77,763,723 565,456,928 $ 565,456,928 ============== =============== ============== ===============
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for a fee of 0.45% on the first $500 million of average annual net assets with a reduction of 0.025% on each $500 million thereafter, to 0.25% on net assets in excess of $4 billion. The Manager has agreed to reimburse the Fund if aggregate expenses (with specified exceptions) exceed the most stringent applicable regulatory limit on Fund expenses. Independently of the investment advisory agreement with the Fund, effective December 1, 1994, the Manager has voluntarily agreed to assume the Fund's expenses to the level needed to enable the Fund's seven-day yield (computed in accordance with procedures specified pursuant to regulations adopted under the Investment Company Act of 1940) to at least equal the seven-day yield of Centennial Money Market Trust, a related Fund for which the Manager also serves as investment adviser. Shareholder Services, Inc. (SSI), a subsidiary of OFI, is the transfer and shareholder servicing agent for the Fund, and for other registered investment companies. SSI's total costs of providing such services are allocated ratably to these companies. Under an approved plan of distribution, the Fund may expend up to 0.20% of its net assets annually to reimburse certain securities dealers and other financial institutions and organizations for costs incurred in distributing Fund shares. 21 23 INDEPENDENT AUDITORS' REPORT Daily Cash Accumulation Fund, Inc. The Board of Directors and Shareholders of Daily Cash Accumulation Fund, Inc.: We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Daily Cash Accumulation Fund, Inc., as of December 31, 1996, the related statement of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1996 and 1995, and the financial highlights for the period January 1, 1992 to December 31, 1996. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 1996 by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of Daily Cash Accumulation Fund, Inc., at December 31, 1996, the results of its operations, the changes in its net assets, and the financial highlights for the respective stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado January 22, 1997 22 24 FEDERAL INCOME TAX INFORMATION (Unaudited) Daily Cash Accumulation Fund, Inc. In early 1997, shareholders will receive information regarding all dividends and distributions paid to them by the Fund during calendar year 1996. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. None of the dividends paid by the Fund during the fiscal year ended December 31, 1996 are eligible for the corporate dividend-received deduction. The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax adviser for specific guidance. 23 Daily Cash Accumulation Fund, Inc. 1997 Semi-Annual Report Officers and Directors James C. Swain, Chairman and Chief Executive Officer Bridget A. Macaskill, Director and President Robert G. Avis, Director William A. Baker, Director Charles Conrad, Jr., Director Jon S. Fossel, Director Sam Freedman, Director Raymond J. Kalinowski, Director C. Howard Kast, Director Daily Cash Robert M. Kirchner, Director Ned M. Steel, Director Accumulation George C. Bowen, Vice President, Treasurer Fund, Inc. and Assistant Secretary Andrew J. Donohue, Vice President and June 30, 1997 Secretary Dorothy G. Warmack, Vice President Carol E. Wolf, Vice President Arthur J. Zimmer, Vice President Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary Investment Adviser And Distributor Centennial Asset Management Corporation Transfer and Shareholder Servicing Agent Shareholder Services, Inc. Custodian of Portfolio Securities Citibank, N.A. Independent Auditors Deloitte & Touche LLP Legal Counsel Myer, Swanson, Adams & Wolf, P.C. The financial statements included herein have been taken from the records of the Fund without examination by the independent auditors. This is a copy of a report to shareholders of Daily Cash Accumulation Fund, Inc. This report must be preceded or accompanied by a Prospectus of Daily Cash Accumulation Fund, Inc. For material information concerning the Fund, see the Prospectus. For shareholder servicing call: 1-800-525-9310 (in U.S.) 303-768-3200 (outside U.S.) Or write: Shareholder Services, Inc. P.O. Box 5143 Denver, CO 80217-5143 Dear Shareholder: The job of a money market fund is to provide liquidity, safety of principal and a yield that keeps pace with inflation. During the six months ended June 30, 1997, your Daily Cash Accumulation Fund, Inc. achieved those objectives. For the six months ended June 30, 1997, Daily Cash Accumulation Fund, Inc. had a compounded annualized yield of 5.05%. Without compounding, the corresponding yield was 4.93%. The seven-day annualized yields, with and without compounding, for the six months ended June 30, 1997 were 5.17% and 5.04%, respectively.1 It's important to remember that an investment in the Fund is neither insured nor guaranteed by the U.S. government, and there is no assurance that the Fund will maintain a stable $1.00 share price in the future. Our strategy is to invest in the securities that present minimal credit risk. Through our independent credit analysis, we are able to add value in the way of additional yield, by identifying and investing in securities that are improving credits. We may invest in securities that receive the second highest rating issued by one credit rating agency, but that security must also have been assigned the highest rating by at least two other ratings agencies. We invest in such a "split-rated" security only if it is, in our opinion, an improving credit and likely to be upgraded. The U.S. economy is in the midst of one of its best periods in decades, with growth in 1997 reaching an annual rate of 4%, up from about 2% in 1995. Unemployment has fallen to its lowest level since the early 1970s. Meanwhile, inflation is dormant, despite the strengthening economy. As a result, interest rates have remained under control. Although 30-year Treasury rates have risen above 7% several times during the past twelve months, yields on short-term securities, such as U.S. Treasury bills and money market securities, have hovered closer to 5%. In comparison, the annual inflation rate is generally agreed to be about 2.5%.2 That means that the difference between money market yields and inflation is roughly 3 percentage points, twice the normal "spread." Considering their low level of risk and their traditional role as an alternative to cash, today's money market fund yields are quite attractive. On March 25, 1997, the Federal Reserve Board raised short-term interest rates by 0.25%. Many market observers predicted the Fed's attempt to slow down the economy, since the Gross Domestic Product during the first quarter of 1997 was growing at a 5.8% annual rate. Although the March action came as no surprise, the next question was whether the Fed was going to raise interest rates further. However, the Fed often behaves unexpectedly. Many investors expected the Fed to raise interest rates another 0.25% at its May 20, 1997 meeting. Instead, the Fed left interest rates unchanged, satisfied that the economy was slowing down. Rather than try to make such predictions, our strategy is to "ladder" the portfolio with some securities maturing in a few days, some maturing in a month, some maturing in two months and so on. With a relatively broad maturity spectrum, the portfolio is less affected by Fed moves up or down. At the same time, the portfolio is able to enjoy higher income typically available on longer-term money market securities. Thank you for your confidence in Daily Cash Accumulation Fund, Inc. We look forward to helping you reach your investment goals in the future. Sincerely, /s/ James C. Swain James C. Swain Chairman Daily Cash Accumulation Fund, Inc. /s/ Bridget A. Macaskill Bridget A. Macaskill President Daily Cash Accumulation Fund, Inc. July 22, 1997 1. Compounded yields assume reinvestment of dividends. An "annualized" yield assumes that the actual six-month performance is replicated for a full year. Past performance does not guarantee future results. 2. Data: Labor Dept. 2 Statement of Investments June 30, 1997 (Unaudited) Daily Cash Accumulation Fund, Inc. Face Value Amount See Note 1 ------------ ------------ Bankers' Acceptances-0.6% BankBoston, N.A.: 5.28%, 8/18/97............................... $ 7,000,000 $ 6,950,720 5.60%, 10/24/97.............................. 5,000,000 4,910,555 Societe Generale, 5.64%, 10/15/97............. 8,000,000 7,867,147 ------------ Total Bankers' Acceptances.................... 19,728,422 ------------ Certificates of Deposit-3.6% Domestic Certificates of Deposit-0.6% LaSalle National Bank: 5.46%, 7/1/97................................ 5,000,000 5,000,000 5.52%, 7/9/97................................ 8,000,000 8,000,000 5.53%, 7/2/97................................ 10,000,000 10,000,000 ------------ 23,000,000 ------------ Yankee Certificates of Deposit-2.9% ABN Amro Bank, N.V., 5.49%, 7/11/97........... 15,000,000 15,000,082 Deutsche Bank AG, 5.55%, 7/14/97.............. 10,000,000 10,000,035 Societe Generale: 5.68%, 8/21/97............................... 7,000,000 7,000,081 5.68%, 8/21/97............................... 10,000,000 9,999,925 5.72%, 10/21/97.............................. 10,000,000 9,989,803 5.75%, 12/23/97.............................. 15,000,000 15,000,000 5.75%, 12/23/97.............................. 15,000,000 15,000,000 5.75%, 8/8/97................................ 10,000,000 10,000,000 5.92%, 9/17/97............................... 10,000,000 10,006,032 ------------ 101,995,958 ------------ Total Certificates of Deposit................. 124,995,958 Direct Bank Obligations-4.6% Abbey National North America Corp.: 5.275%, 8/21/97.............................. 10,000,000 9,925,271 5.39%, 7/11/97............................... 10,000,000 9,985,014 ABN Amro North America Finance, Inc.: 5.28%, 7/23/97............................... 10,000,000 9,967,122 5.37%, 7/11/97............................... 15,000,000 14,997,625 BankBoston, N.A.: 5.53%, 7/11/97............................... 10,000,000 10,000,000 5.69%, 8/29/97............................... 10,000,000 10,000,000 5.69%, 9/8/97................................ 5,000,000 5,000,000 Bankers Trust Co., New York: 5.37%, 12/10/97(1)........................... 8,000,000 7,999,147 3 Statement of Investments June 30, 1997 (Unaudited) (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ----------- -------------- Direct Bank Obligations (Continued) Bankers Trust Co., New York: (Continued) 5.60%, 11/26/97(1)........................................... $10,000,000 $ 9,997,210 5.66%, 6/9/98(1)............................................. 8,000,000 7,996,352 FCC National Bank, 5.60%, 5/8/98(1)........................... 10,000,000 9,996,668 Societe Generale North America, Inc.: 5.39%, 7/14/97............................................... 15,000,000 14,970,804 5.59%, 12/10/97.............................................. 8,000,000 7,798,760 5.60%, 9/8/97................................................ 25,000,000 24,731,667 5.61%, 9/2/97................................................ 10,000,000 9,901,825 --------------- Total Direct Bank Obligations................................. 163,247,465 --------------- Letters of Credit-6.3% ABN Amro Bank, N.V., guaranteeing commercial paper of: Formosa Plastics Corp. USA-Series A: 5.60%, 8/26/97.............................................. 10,000,000 9,912,889 5.60%, 9/22/97.............................................. 5,000,000 4,935,444 5.63%, 8/28/97.............................................. 15,000,000 14,863,942 Bank of America NT & SA, guaranteeing commercial paper of: Hyundai Motor Finance Co., 5.38%, 7/7/97..................... 5,000,000 4,995,517 Bank One, Cleveland, guaranteeing commercial paper of: Capital One Funding Corp.-Series 1995F: 5.63%, 7/13/97(1)(2)........................................ 10,404,000 10,404,000 5.63%, 7/13/97(1)(2)........................................ 8,750,000 8,750,000 Barclays Bank PLC, guaranteeing commercial paper of: Banco Bradesco SA-Grand Cayman Branch: Series A, 5.65%, 12/1/97.................................... 5,000,000 4,881,212 Series A, 5.69%, 12/3/97.................................... 13,000,000 12,681,518 Series B, 5.62%, 12/3/97.................................... 5,000,000 4,879,014 Barclays Bank PLC, guaranteeing commercial paper of: Banco Nacionale de Mexico SA-Series B, 5.63%, 7/1/97......... 10,000,000 10,000,000 Bayerische Vereinsbank AG, guaranteeing commercial paper of: Galicia Funding Corp.-Series A: 5.63%, 9/5/97(3)............................................ 10,000,000 9,896,783 5.65%, 12/5/97(3)........................................... 13,000,000 12,681,421 Credit Suisse, guaranteeing commercial paper of: CEMEX, S.A. de C.V.-Series A, 5.31%, 8/18/97................. 5,000,000 4,964,600 CEMEX, S.A. de C.V.-Series B, 5.61%, 8/22/97................. 17,000,000 16,862,243 CEMEX, S.A. de C.V.-Series B, 5.68%, 8/19/97................. 5,750,000 5,706,016 COSCO (Cayman) Co., Ltd., 5.59%, 10/24/97.................... 5,000,000 4,910,715 Daewoo International Corp., 5.45%, 7/15/97................... 6,000,000 5,987,283 Daewoo International Corp., 5.60%, 9/9/97.................... 10,000,000 9,891,111
4 Statement of Investments June 30, 1997 (Unaudited) (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ----------- -------------- Letters of Credit (Continued) Guangdon Enterprises Ltd., 5.67%, 8/19/97.............................. $ 5,000,000 $ 4,961,412 Minmetals Capitals & Securities, Inc., 5.61%, 8/12/97.................. 5,000,000 4,967,275 Pemex Capital, Inc.-Series A, 5.28%, 7/14/97........................... 25,000,000 24,952,388 Pemex Capital, Inc.-Series B, 5.62%, 11/3/97........................... 5,000,000 4,902,431 Societe Generale, guaranteeing commercial paper of: Banco Nacionale de Comercio Exterior, SNC-Series A, 5.61%, 11/25/97 5,000,000 4,885,463 Banco Nacionale de Comercio Exterior, SNC-Series B, 5.61%, 12/1/97..... 10,000,000 9,761,575 Nacional Financiera SNC-Series A, 5.75%, 8/18/97....................... 10,000,000 9,923,333 -------------- Total Letters of Credit................................................. 221,557,585 -------------- Short-Term Notes-80.3% Automotive-1.4% BMW US Capital Corp.: 5.60%, 8/20/97......................................................... 20,000,000 19,844,444 5.60%, 8/25/97......................................................... 10,000,000 9,914,444 5.62%, 8/26/97......................................................... 10,425,000 10,333,862 5.65%, 8/5/97.......................................................... 10,000,000 9,945,069 -------------- 50,037,819 -------------- Bank Holding Companies-2.2% Bankers Trust New York Corp., 5.39%, 7/9/97............................. 25,000,000 24,970,056 Barnett Banks, Inc., 5.70%, 7/7/97...................................... 15,000,000 14,985,750 CoreStates Capital Corp., 5.61%, 7/14/97(1)............................. 5,000,000 5,000,000 Morgan (J.P.) & Co., Inc., 5.38%, 7/9/97................................ 10,000,000 9,988,044 NationsBank Corp., 5.37%, 7/8/97........................................ 16,000,000 15,983,293 Norwest Corp., 7.70%, 11/15/97.......................................... 5,000,000 5,031,092 -------------- 75,958,235 -------------- Beverages-0.3% Coca-Cola Enterprises, Inc.: 5.66%, 7/24/97(3)...................................................... 5,000,000 4,981,919 5.68%, 7/14/97(3)...................................................... 5,000,000 4,989,744 -------------- 9,971,663 -------------- Broker/Dealers-15.0% Bear Stearns Cos., Inc.: 5.42%, 10/16/97(1)..................................................... 5,000,000 4,999,386 5.43%, 4/21/98(1)...................................................... 5,000,000 4,999,916 5.44%, 5/22/98(1)...................................................... 7,000,000 7,000,000 5.60%, 8/20/97......................................................... 10,000,000 9,922,222 5.61%, 8/27/97......................................................... 15,000,000 14,866,762 5.61%, 8/28/97......................................................... 10,000,000 9,909,617
5 Statement of Investments June 30, 1997 (Unaudited) (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ----------- ------------ Broker/Dealers (Continued) Bear Stearns Cos., Inc.: (Continued) 5.61%, 9/22/97............................... $ 7,000,000 $ 6,909,461 5.62%, 9/2/97................................ 15,000,000 14,852,475 5.62%, 9/4/97................................ 10,000,000 9,898,528 5.63%, 7/14/97............................... 16,000,000 15,967,471 5.64%, 10/6/97............................... 15,000,000 14,772,050 5.66%, 7/8/97................................ 18,000,000 17,980,190 5.677%, 2/9/98(1)............................ 5,000,000 5,006,286 CS First Boston, Inc.: 5.36%, 7/11/97............................... 5,000,000 4,992,556 5.42%, 5/12/98(1)............................ 5,000,000 5,000,000 5.43%, 6/2/98(1)............................. 5,000,000 5,000,000 5.617%, 3/13/98(1)........................... 8,000,000 8,000,000 Goldman Sachs Group, L.P.: 5.60%, 9/12/97............................... 15,000,000 14,829,667 5.61%, 9/10/97............................... 15,000,000 14,834,037 5.62%, 10/6/97............................... 10,000,000 9,848,572 5.62%, 9/4/97................................ 15,000,000 14,847,792 Promissory Nts., 5.844%, 10/10/97(2)......... 6,000,000 6,000,000 Promissory Nts., 5.87%, 11/10/97(2).......... 10,000,000 10,000,000 Promissory Nts., 5.88%, 12/12/97(2).......... 15,000,000 15,000,000 Promissory Nts., 5.89%, 9/4/97(2)............ 10,000,000 10,000,000 Lehman Brothers Holdings, Inc.: 5.62%, 11/21/97.............................. 10,000,000 9,776,761 5.63%, 8/22/97............................... 5,000,000 4,959,339 5.64%, 9/10/97............................... 20,000,000 19,777,533 5.65%, 7/10/97............................... 10,000,000 9,985,875 5.65%, 7/7/97................................ 10,000,000 9,990,583 5.677%, 2/3/98(1)............................ 10,000,000 10,000,000 5.771%, 6/18/98(1)........................... 10,000,000 10,030,510 Merrill Lynch & Co., Inc.: 5.28%, 7/3/97................................ 5,000,000 4,998,533 5.36%, 7/2/97................................ 10,000,000 9,998,511 5.40%, 7/9/97................................ 5,000,000 4,994,000 5.58%, 10/29/97.............................. 20,000,000 19,628,000 5.58%, 12/15/97.............................. 9,000,000 8,767,035 5.60%, 8/29/97............................... 5,000,000 4,954,111 5.63%, 7/14/97............................... 28,000,000 27,943,074 5.648%, 1/8/98(1)............................ 15,000,000 14,998,469 5.65%, 7/10/97............................... 10,000,000 9,985,875 5.68%, 10/24/97(1)........................... 10,000,000 9,999,370 5.68%, 3/18/98(1)............................ 5,000,000 4,999,304
6 Statement of Investments June 30, 1997 (Unaudited) (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ----------- -------------- Broker/Dealers (Continued) 5.68%, 7/16/97...................................................... $20,000,000 $ 19,952,667 5.685%, 5/26/98(1).................................................. 8,000,000 7,998,927 5.70%, 8/12/97...................................................... 5,000,000 4,966,750 5.75%, 12/19/97(1).................................................. 15,000,000 14,999,774 Morgan Stanley, Dean Witter, Discover & Co., 5.50%, 3/24/98......... 28,900,000 28,900,000 -------------- 528,041,989 -------------- Chemicals-0.2% Henkel Corp., 5.61%, 9/11/97(3)...................................... 6,185,000 6,115,604 -------------- Commercial Finance-16.9% CIT Group Holdings, Inc.: 5.58%, 11/20/97(1).................................................. 15,000,000 14,995,578 5.60%, 5/22/98(1)................................................... 15,000,000 14,990,973 5.60%, 8/26/97...................................................... 10,000,000 9,912,889 5.625%, 9/17/97(1).................................................. 20,000,000 19,996,901 5.63%, 7/17/97...................................................... 10,000,000 9,974,978 5.764%, 3/11/98(1).................................................. 38,500,000 38,500,000 Countrywide Home Loans: 5.57%, 7/1/97....................................................... 15,000,000 15,000,000 5.57%, 7/9/97....................................................... 32,000,000 31,960,391 5.59%, 9/18/97...................................................... 20,000,000 19,754,661 5.61%, 8/27/97...................................................... 10,000,000 9,911,175 5.62%, 8/14/97...................................................... 10,000,000 9,931,311 5.62%, 8/26/97...................................................... 75,000,000 74,343,556 FINOVA Capital Corp.: 5.30%, 7/14/97...................................................... 5,000,000 4,990,431 5.40%, 7/1/97....................................................... 10,000,000 10,000,000 5.40%, 7/21/97...................................................... 5,000,000 4,985,000 5.43%, 7/10/97...................................................... 5,000,000 4,993,212 5.44%, 7/7/97....................................................... 10,000,000 9,990,775 5.47%, 7/11/97...................................................... 10,000,000 9,984,806 5.47%, 7/16/97...................................................... 5,000,000 4,988,604 5.61%, 10/30/97..................................................... 15,000,000 14,717,162 5.61%, 11/21/97..................................................... 8,000,000 7,821,727 5.61%, 11/7/97...................................................... 5,000,000 4,899,487 5.62%, 11/10/97..................................................... 5,000,000 4,896,967 5.63%, 12/4/97...................................................... 15,000,000 14,634,050 5.63%, 8/21/97...................................................... 10,000,000 9,920,242 5.64%, 11/14/97..................................................... 13,000,000 12,723,013 5.64%, 9/8/97....................................................... 10,000,000 9,891,900 5.65%, 9/19/97...................................................... 15,000,000 14,811,667 5.69%, 12/11/97..................................................... 20,000,000 19,484,739
7 Statement of Investments June 30, 1997 (Unaudited) (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ----------- ------------ Commercial Finance (Continued) Heller Financial, Inc.: 5.71%, 10/1/97(1) .................................... $20,000,000 $ 19,998,992 5.71%, 10/10/97(1) .................................... 13,000,000 12,999,281 5.72%, 8/27/97 ....................................... 15,000,000 14,864,150 5.73%, 9/9/97 .......................................... 15,000,000 14,832,875 5.74%, 11/13/97 ....................................... 15,000,000 14,677,125 5.75%, 12/15/97 ....................................... 9,000,000 8,759,938 5.75%, 7/16/97 ....................................... 10,000,000 9,976,042 5.75%, 9/4/97 .......................................... 10,000,000 9,896,181 5.75%, 9/8/97 .......................................... 7,000,000 6,922,854 5.80%, 10/9/97 ....................................... 20,000,000 19,677,778 5.80%, 12/22/97 ....................................... 15,000,000 14,579,500 5.831%, 12/18/97(1) .................................... 15,000,000 15,000,000 ------------ 595,190,911 ------------ Computer Software-0.6% First Data Corp.: 5.58%, 12/16/97 ....................................... 15,000,000 14,609,400 5.605%, 1/27/98 ....................................... 8,000,000 7,738,433 ------------ 22,347,833 ------------ Conglomerates-0.5% Mitsubishi International Corp.: 5.60%, 9/15/97 ....................................... 9,800,000 9,684,142 5.61%, 8/20/97 ....................................... 10,000,000 9,922,083 ------------ 19,606,225 ------------ Consumer Finance-1.9% Island Finance Puerto Rico, Inc.: 5.60%, 9/10/97 ....................................... 6,000,000 5,933,733 5.61%, 8/25/97 ....................................... 10,000,000 9,914,292 5.61%, 8/29/97 ....................................... 8,000,000 7,926,447 Sears Roebuck Acceptance Corp.: 5.60%, 8/25/97 ....................................... 10,000,000 9,914,444 6.20%, 7/1/97 .......................................... 31,800,000 31,800,000 ------------ 65,488,916 ------------ Diversified Financial-7.0% Associates Corp. of North America, 5.65%, 7/14/97 ...... 15,000,000 14,969,396 Ford Motor Credit Corp., 5.57%, 11/20/97 ............... 30,000,000 29,340,883 General Electric Capital Corp.: 5.37%, 7/10/97 ....................................... 10,000,000 9,986,575 5.40%, 7/8/97 .......................................... 10,000,000 9,989,500 5.57%, 11/28/97 ....................................... 25,000,000 24,419,792
8 Statement of Investments June 30, 1997 (Unaudited) (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ----------- ------------ Diversified Financial (Continued) 5.59%, 9/15/97........................................... $25,000,000 $ 24,704,972 5.75%, 7/2/97............................................ 25,000,000 24,996,007 General Electric Capital Services, 5.36%, 7/16/97......... 7,000,000 6,984,367 General Motors Acceptance Corp.: 5.31%, 8/6/97............................................ 31,000,000 30,835,150 5.41%, 7/15/97........................................... 8,000,000 7,983,169 5.45%, 7/14/97........................................... 7,000,000 6,986,224 5.61%, 12/22/97.......................................... 7,000,000 6,810,195 5.73%, 11/18/97.......................................... 15,000,000 14,665,750 5.73%, 11/24/97.......................................... 8,000,000 7,814,093 5.75%, 4/21/98(1)........................................ 15,000,000 14,993,808 Prudential Funding Corp., 5.685%, 5/5/98(1)............... 10,000,000 9,997,964 ------------ 245,477,845 ------------ Electronics-2.6% Avnet, Inc.: 5.55%, 8/6/97............................................ 10,000,000 9,943,400 5.67%, 7/14/97........................................... 10,000,000 9,979,525 Mitsubishi Electric Finance America, Inc.: 5.63%, 8/20/97........................................... 10,000,000 9,921,806 5.63%, 9/3/97(3)......................................... 35,000,000 34,649,689 5.65%, 8/27/97(3)........................................ 7,000,000 6,937,379 5.66%, 8/6/97(3)......................................... 13,825,000 13,746,624 5.67%, 7/23/97(3)........................................ 5,000,000 4,982,675 ------------ 90,161,098 ------------ Healthcare/Supplies & Services-1.3% American Home Products Corp.: 5.62%, 9/8/97(3)......................................... 25,000,000 24,730,708 5.63%, 7/14/97(3)........................................ 9,871,000 9,850,932 5.63%, 9/3/97(3)......................................... 10,000,000 9,899,911 ------------ 44,481,551 ------------ Industrial Services-0.5% Atlas Copco AB, 5.625%, 8/25/97(3)........................ 5,000,000 4,957,031 PHH Corp.: 5.658%, 1/27/98(1)....................................... 5,000,000 4,999,091 5.698%, 1/15/98(1)....................................... 8,000,000 7,999,577 ------------ 17,955,699 ------------
9 Statement of Investments June 30, 1997 (Unaudited) (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ----------- ------------ Insurance-8.7% Allstate Life Insurance Co., 5.691%, 7/1/97(1)................... $10,000,000 $ 10,000,000 General American Life Insurance Co., 5.89%, 7/1/97(1)............ 30,000,000 30,000,000 Jackson National Life Insurance Co.: 5.71%, 3/1/98(1)................................................ 30,000,000 30,000,000 5.711%, 8/1/98(1)............................................... 15,000,000 15,000,000 Pacific Mutual Life Insurance Co., 5.756%, 7/21/97(1)(2)......... 30,000,000 30,000,000 Protective Life Insurance Co.: 5.751%, 4/1/98(1)............................................... 10,000,000 10,000,000 5.841%, 7/21/97(1)(2)........................................... 20,000,000 20,000,000 5.773%, 1/31/00(1).............................................. 60,000,000 60,000,000 TransAmerica Life Insurance & Annuity Co.: 5.687%, 5/15/98(1).............................................. 10,000,000 10,000,000 5.691%, 10/15/97(1)............................................. 25,000,000 25,000,000 5.691%, 8/7/97(1)............................................... 25,000,000 25,000,000 5.691%, 9/30/97(1).............................................. 20,000,000 20,000,000 TransAmerica Occidental Corp., 5.691%, 9/29/97(1)................ 20,000,000 20,000,000 ------------ 305,000,000 ------------ Leasing & Factoring-1.9% American Honda Finance Corp.: 5.62%, 7/31/97.................................................. 25,000,000 24,882,917 5.65%, 8/4/97................................................... 10,000,000 9,946,639 5.812%, 6/16/98(1).............................................. 5,000,000 5,000,000 International Lease Finance Corp.: 5.27%, 7/17/97.................................................. 8,000,000 7,981,262 5.27%, 7/21/97.................................................. 10,000,000 9,970,722 The Hertz Corp., 5.60%, 9/2/97................................... 8,000,000 7,921,600 ------------ 65,703,140 ------------ Manufacturing-0.1% Rexam PLC, 5.67%, 8/12/97(3)..................................... 2,535,000 2,518,231 ------------ Metals/Mining-0.4% RTZ America, Inc.: 5.57%, 12/22/97(3).............................................. 5,500,000 5,351,931 5.58%, 12/19/97(3).............................................. 8,000,000 7,787,960 ------------ 13,139,891 ------------
10 Statement of Investments June 30, 1997 (Unaudited) (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ----------- ------------ Nondurable Household Goods-1.0% Avon Capital Corp.: 5.63%, 9/8/97(3)............................................................ $ 8,000,000 $ 7,913,673 5.64%, 8/28/97(3)........................................................... 23,000,000 22,791,007 Newell Co., 5.60%, 10/17/97(3)............................................... 5,000,000 4,916,000 ------------ 35,620,680 ------------ Oil-Integrated-0.4% Repsol International Finance BV, 5.35%, 7/1/97............................... 15,000,000 15,000,000 ------------ Savings & Loans-1.7% First Bank FSB, 5.658%, 8/29/97(1)........................................... 7,000,000 6,999,889 Great Western Bank FSB: 5.61%, 9/17/97.............................................................. 7,000,000 6,914,915 5.62%, 8/27/97.............................................................. 35,000,000 34,688,954 5.62%, 9/11/97.............................................................. 10,000,000 9,887,800 ------------ 58,491,558 ------------ Special Purpose Financial-15.1% Asset Backed Capital Finance, Inc.: 5.60%, 11/17/97(3).......................................................... 4,000,000 3,913,511 5.65%, 7/8/97(3)............................................................ 17,400,000 17,380,884 5.66%, 3/16/98(1)(2)........................................................ 5,000,000 4,998,416 5.67%, 12/1/97(3)........................................................... 23,200,000 22,640,938 5.687%, 12/15/97(1)(2)...................................................... 15,000,000 14,997,563 Asset Backed Securities Investment Trust-Series 1997A, 5.738% 2/16/98(1)(2) 15,000,000 14,999,063 Asset Securitization Cooperative Corp.: 5.63%, 8/4/97(3)............................................................ 10,000,000 9,946,828 5.64%, 7/7/97(3)............................................................ 55,000,000 54,948,300 Beta Finance, Inc.: 5.61%, 9/5/97(3)............................................................ 9,000,000 8,907,435 5.62%, 9/26/97(3)........................................................... 12,000,000 11,837,020 5.62%, 9/8/97(3)............................................................ 8,000,000 7,913,827 Corporate Asset Funding Co., Inc.: 5.60%, 12/12/97(3).......................................................... 18,000,000 17,540,800 5.60%, 8/25/97(3)........................................................... 15,000,000 14,871,667 CXC, Inc.: 5.59%, 9/8/97(3)............................................................ 15,000,000 14,839,288 5.62%, 11/17/97(3).......................................................... 5,000,000 4,891,503 5.62%, 7/3/97(3)............................................................ 10,000,000 9,996,878 5.62%, 8/15/97(3)........................................................... 7,000,000 6,950,825 5.62%, 9/3/97(3)............................................................ 20,000,000 19,800,178 5.63%, 7/9/97(3)............................................................ 10,000,000 9,987,489
11 Statement of Investments June 30, 1997 (Unaudited) (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ----------- ------------- Special Purpose Financial (Continued) Enterprise Funding Corp.: 5.61%, 8/11/97(3).......................................... $10,000,000 $ 9,936,108 5.64%, 8/28/97(3).......................................... 20,097,000 19,914,385 5.65%, 12/10/97(3)......................................... 10,000,000 9,745,750 5.65%, 7/16/97(3).......................................... 8,000,000 7,981,167 Falcon Asset Securitization Corp.: 5.60%, 7/28/97(3).......................................... 38,400,000 38,238,720 5.67%, 8/18/97(3).......................................... 10,800,000 10,718,352 New Center Asset Trust, 5.27%, 7/28/97...................... 20,000,000 19,920,950 Preferred Receivables Funding Corp.: 5.40%, 7/10/97............................................. 5,375,000 5,367,744 5.62%, 8/28/97............................................. 10,350,000 10,256,287 RACERS: Series 1996-MM-12-3, 5.687%, 12/15/97(1)(2)................ 15,000,000 15,000,000 Series 1997-MM-1-1, 5.687%, 1/15/98(1)(2).................. 12,000,000 11,997,414 Sigma Finance, Inc.: 5.60%, 10/15/97(3)......................................... 13,000,000 12,785,644 5.60%, 12/4/97(3).......................................... 3,000,000 2,927,200 5.61%, 8/27/97(3).......................................... 6,500,000 6,442,264 5.62%, 9/10/97(3).......................................... 15,000,000 14,833,742 5.64%, 8/28/97(3).......................................... 10,000,000 9,909,133 5.68%, 7/25/97(3).......................................... 13,000,000 12,950,773 5.69%, 11/26/97(3)......................................... 5,000,000 4,883,039 5.70%, 8/19/97(3).......................................... 10,000,000 9,922,417 SMM Trust 1996-B, 5.738%, 8/4/97(1)(2)...................... 10,000,000 10,000,000 SMM Trust 1997-I, 5.687%, 5/29/98(1)(2)..................... 10,000,000 10,000,000 TIERS Series DCMT 1996-A, 5.717%, 10/15/97(1)(2)............ 5,000,000 5,000,000 ------------- 530,093,502 ------------- Specialty Retailing-0.6% St. Michael Finance Ltd., 5.61%, 9/11/97.................... 22,000,000 21,753,160 ------------- Total Short-Term Notes...................................... 2,818,155,550 ------------- U.S. Government Obligations-1.3% Federal Home Loan Bank, 5.67%, 8/1/97(1).................... 34,000,000 33,997,453 Student Loan Marketing Assn., 5.82%, 1/23/98................ 10,000,000 9,999,153 ------------- Total U.S. Government Obligations (Cost $43,996,606)........ 43,996,606 -------------
12 Statement of Investments June 30, 1997 (Unaudited) (Continued) Daily Cash Accumulation Fund, Inc.
Face Value Amount See Note 1 ------------ -------------- Foreign Government Obligations-0.9% Bayerische Landesbank Girozentrale, 5.80%, 7/29/97(1)............... $ 15,000,000 $ 15,000,000 Swedish Export Credit Corp., 5.36%, 7/9/97.......................... 15,000,000 14,982,133 -------------- Total Foreign Government Obligations................................ 29,982,133 -------------- Municipal Bonds and Notes-0.1% Virginia Housing Development Authority Series 1997-A-STEM 11, 5.85%, 12/30/97........................................................... 5,000,000 4,998,647 -------------- Total Investments, at Value......................................... 97.6% 3,426,662,366 Other Assets Net of Liabilities..................................... 2.4 84,564,549 ------------ -------------- Net Assets.......................................................... 100.0% $3,511,226,915 ============ ==============
Short-term notes, bankers' acceptances, direct bank obligations and letters of credit are generally traded on a discount basis; the interest rate is the discount rate received by the Fund at the time of purchase. Other securities normally bear interest at the rates shown. 1. Floating or variable rate obligation. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on June 30, 1997. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice. Maturity date shown represents effective maturity based on variable rate and, if applicable, demand feature. 2. Restricted securities which are considered illiquid, by virtue of the absence of a readily available market or because of legal or contractual restrictions on resale, amount to $197,146,456, or 5.61% of the Fund's net assets. The Fund may not invest more than 10% of its net assets (determined at the time of purchase) in illiquid securities. 3. Restricted securities, including those issued in exempt transactions without registration under the Securities Act of 1933 (the Act), amounting to $607,255,287, or 17.29% of the Fund's net assets, have been determined to be liquid pursuant to guidelines adopted by the Board of Directors. See accompanying Notes to Financial Statements. 13 Statement of Assets and Liabilities June 30, 1997 (Unaudited) Daily Cash Accumulation Fund, Inc. ASSETS: Investments, at value-see accompanying statement............................. $3,426,662,366 Cash......................................................................... 422,403 Receivables: Shares of capital stock sold................................................ 109,823,219 Interest.................................................................... 9,973,808 Other....................................................................... 362,050 -------------- Total assets............................................................... 3,547,243,846 -------------- LIABILITIES: Payables and other liabilities: Shares of capital stock redeemed............................................ 29,590,330 Dividends................................................................... 5,237,092 Transfer and shareholder servicing agent fees............................... 534,261 Service plan fees........................................................... 206,544 Other....................................................................... 448,704 -------------- Total liabilities.......................................................... 36,016,931 -------------- NET ASSETS................................................................... $3,511,226,915 ============== COMPOSITION OF NET ASSETS: Par value of shares of capital stock......................................... $ 351,106,706 Additional paid-in capital................................................... 3,159,960,353 Accumulated net realized gain on investment transactions..................... 159,856 -------------- NET ASSETS-applicable to 3,511,067,059 shares of capital stock outstanding... $3,511,226,915 ============== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE............... $ 1.00 ==============
See accompanying Notes to Financial Statements. 14 Statement of Operations For the Six Months Ended June 30, 1997 (Unaudited) Daily Cash Accumulation Fund, Inc. INVESTMENT INCOME: Interest........................................................................... $ 97,897,308 ------------ EXPENSES: Management fees-Note 3............................................................. 6,569,757 Service plan fees-Note 3........................................................... 3,477,939 Transfer and shareholder servicing agent fees-Note 3............................... 2,157,975 Shareholder reports................................................................ 367,033 Legal and auditing fees............................................................ 25,806 Custodian fees and expenses........................................................ 139,130 Registration and filing fees....................................................... 19,356 Directors' fees and expenses....................................................... 10,831 Other.............................................................................. 8,039 ------------ Total expenses..................................................................... 12,775,866 Less assumption of expenses by Centennial Asset Management Corporation-Note 3...... (956,999) ------------ Net expenses....................................................................... 11,818,867 ------------ NET INVESTMENT INCOME.............................................................. 86,078,441 NET REALIZED GAIN ON INVESTMENTS................................................... 22,893 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................... $ 86,101,334 ============
See accompanying Notes to Financial Statements. 15 Statements of Changes in Net Assets Daily Cash Accumulation Fund, Inc.
Six Months Ended June 30, 1997 Year Ended (Unaudited) December 31, 1996 --------------- ----------------- OPERATIONS: Net investment income................................................. $ 86,078,441 $ 173,243,313 Net realized gain..................................................... 22,893 2,534 -------------- -------------- Net increase in net assets resulting from operations.................. 86,101,334 173,245,847 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS........................... (86,078,441) (173,245,601) CAPITAL STOCK TRANSACTIONS: Net increase (decrease) in net assets resulting from capital stock transactions-Note 2.................................................. (90,285,048) 77,763,723 -------------- -------------- NET ASSETS: Total increase (decrease)............................................. (90,262,155) 77,763,969 Beginning of period................................................... 3,601,489,070 3,523,725,101 -------------- -------------- End of period......................................................... $3,511,226,915 $3,601,489,070 ============== ==============
See accompanying Notes to Financial Statements. 16 Financial Highlights Daily Cash Accumulation Fund, Inc.
Year Ended December 31, ------------------------------------------------------ Six Months Ended June 30, 1997 (Unaudited) 1996 1995 1994 1993 1992 ------------------ ---------- ---------- ---------- ---------- ---------- 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 and net realized gain.................. .02 .05 .05 .04 .03 .03 Dividends and distributions to shareholders.................................. (.02) (.05) (.05) (.04) (.03) (.03) --------- ------ ------ ------ ------ ------ Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========= ====== ====== ====== ====== ====== TOTAL RETURN, AT NET ASSET VALUE(1)............................ 2.44% 4.93% 5.47% 3.77% 2.69% 3.54% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in millions)........ $ 3,511 $3,602 $3,524 $2,958 $3,589 $4,061 Average net assets (in millions)............... $ 3,546 $3,591 $3,379 $3,378 $3,940 $4,760 Ratios to average net assets: Net investment income.......................... 4.90%(2) 4.82% 5.32% 3.64% 2.67% 3.50% Expenses, before voluntary assumption by the Manager..................... 0.73%(2) 0.68% 0.71% 0.74% 0.74% 0.70% Expenses, net of voluntary assumption by the Manager..................... 0.67%(2) 0.67% N/A 0.73% N/A N/A
1. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods of less than one full year. Total returns reflect changes in net investment income only. 2. Annualized. See accompanying Notes to Financial Statements. 17 Notes to Financial Statements (Unaudited) Daily Cash Accumulation Fund, Inc. 1. Significant Accounting Policies Daily Cash Accumulation Fund, Inc. (the Fund) is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Fund's investment objective is to seek the maximum current income that is consistent with low capital risk and the maintenance of liquidity. The Fund seeks to achieve this objective by investing in "money market" securities meeting specified quality standards. The Fund's investment adviser is Centennial Asset Management Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). The following is a summary of significant accounting policies consistently followed by the Fund. Investment Valuation-Portfolio securities are valued on the basis of amortized cost, which approximates market value. Federal Taxes-The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. Therefore, no federal income or excise tax provision is required. Distributions to Shareholders-The Fund intends to declare dividends from net investment income each day the New York Stock Exchange is open for business and pay such dividends monthly. To effect its policy of maintaining a net asset value of $1.00 per share, the Fund may withhold dividends or make distributions of net realized gains. Other-Investment transactions are accounted for on the date the investments are purchased or sold (trade date). Realized gains and losses on investments are determined on an identified cost basis, which is the same basis used for federal income tax purposes. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 18 Notes to Financial Statements (Unaudited) (Continued) Daily Cash Accumulation Fund, Inc. 2. Capital Stock The Fund has authorized 15 billion shares of $0.10 par value capital stock. Transactions in shares of capital stock were as follows:
Six Months Ended June 30, 1997 Year Ended December 31, 1996 ----------------------------------------- ----------------------------------------- Shares Amount Shares Amount -------------------- -------------------- -------------------- -------------------- Sold......................... 3,494,880,002 $ 3,494,880,002 7,263,772,507 $ 7,263,772,507 Dividends and distributions reinvested................. 79,091,318 79,091,318 170,695,960 170,695,960 Redeemed..................... (3,664,256,368) (3,664,256,368) (7,356,704,744) (7,356,704,744) ---------------- ----------------- ---------------- ----------------- Net increase (decrease)...... (90,285,048) $ (90,285,048) 77,763,723 $ 77,763,723 ================ ================= ================ =================
3. Management Fees and Other Transactions with Affiliates Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for a fee of 0.45% of the first $500 million of net assets; 0.425% of the next $500 million; 0.40% of the next $500 million; 0.375% of the next $500 million; 0.35% of the next $500 million; 0.325% of the next $500 million; 0.30% of the next $500 million; 0.275% of the next $500 million; and 0.25% of net assets in excess of $4 billion. Independent of the investment advisory agreement with the Fund, effective December 1, 1994, the Manager has voluntarily agreed to assume the Fund's expenses to the level needed to enable the Fund's seven-day yield (computed in accordance with procedures specified pursuant to regulations adopted under the Investment Company Act of 1940) to at least equal the seven-day yield of Centennial Money Market Trust, a related Fund for which the Manager also serves as investment adviser. Shareholder Services, Inc. (SSI), a subsidiary of OFI, is the transfer and shareholder servicing agent for the Fund, and for other registered investment companies. SSI's total costs of providing such services are allocated ratably to these companies. Under an approved plan of distribution, the Fund may expend up to 0.20% of its net assets annually to reimburse certain securities dealers and other financial institutions and organizations for costs incurred in distributing Fund shares. 4. Subsequent Event On June 24, 1997, the Board of Directors approved the reorganization of Daily Cash Accumulation Fund with and into Centennial Money Market Trust. Shareholders of Daily Cash Accumulation Fund will be asked to approve a reorganization whereby shareholders of Daily Cash Accumulation Fund would receive shares of Centennial Money Market Trust and Daily Cash Accumulation Fund would be liquidated. If shareholder approval is received, it is expected that the reorganization will occur on or about November 21, 1997. 19
Pro Forma Combining Statements of Assets and Liabilities June 30, 1997 (Unaudited) Centennial Money Market Trust and Daily Cash Accumulation Fund, Inc. Pro Forma Centennial Daily Cash Combined Money Market Accumulation ProForma Centennial Money Trust Fund, Inc.(1) Adjustments Market Trust -------------------------------------------------------------------- ASSETS: Investments, at value $8,779,329,984 $3,426,662,366 $12,205,992,350 Cash 794,723 422,403 1,217,126 Receivables: Interest 24,187,765 9,973,808 34,161,573 Shares of beneficial interest/capital stock sold 373,361,415 109,823,219 483,184,634 Other 80,687 362,050 442,737 -------------------------------------------------------------------- Total assets 9,177,754,574 3,547,243,846 12,724,998,420 -------------------------------------------------------------------- LIABILITIES: Payables and other liabilities: Dividends 13,441,882 5,237,092 18,678,974 Shares of beneficial interest/capital stock redeemed 99,776,201 29,590,330 129,366,531 Trustees'/directors' fees 4,008 - 4,008 Transfer and shareholder servicing agent fees - 534,261 534,261 Service plan fees 530,348 206,544 736,892 Other 1,035,254 448,704 1,483,958 -------------------------------------------------------------------- Total liabilities 114,787,693 36,016,931 150,804,624 -------------------------------------------------------------------- NET ASSETS $9,062,966,881 $3,511,226,915 $12,574,193,796 ==================================================================== COMPOSITION OF NET ASSETS: Par value of shares of capital stock $ 0 $ 351,106,706 $(351,106,706)(2) $ 0 Paid-in capital 9,062,904,841 3,159,960,353 351,106,706 (2) 12,573,971,900 Accumulated net realized gain on investment transactions 62,040 159,856 221,896 -------------------------------------------------------------------- NET ASSETS $9,062,966,881 $3,511,226,915 $ 0 $12,574,193,796 ==================================================================== Net Asset Value, Redemption Price and Offering Price Per Share Net asset value, redemption price and offering price per share (based on net assets of $9,062,966,881, $3,511,226,915, and $12,574,193,796 and 9,062,904,841, 3,511,067,059 and 12,574,133,409 shares of beneficial interest outstanding for Centennial Money Market Trust, Daily Cash Accumulation Fund, Inc. and Combined Centennial Money Market Trust, respectively) $1.00 $1.00 $1.00 (1) Daily Cash Accumulation Fund, Inc. shares will be exchanged for Centennial Money Market Trust shares. (2) Par value of shares of capital stock is not in effect for Centennial Money Market Trust.
Pro Forma Combining Statements of Operations For The Year Ended June 30, 1997 (Unaudited) Centennial Money Market Trust and Daily Cash Accumulation Fund, Inc. Pro Forma Centennial Daily Cash Combined Money Market Accumulation ProForma Centennial Money Trust Fund, Inc.(3) Adjustments Market Trust -------------------------------------------------------------------- INVESTMENT INCOME - Interest $443,824,705 $195,668,809 $ $639,493,514 -------------------------------------------------------------------- EXPENSES: Management fees 32,755,568 13,220,242 (6,511,620)(1) 39,464,190 Service plan fees 16,003,021 7,006,330 23,009,351 Transfer and shareholder servicing agent fees 5,938,571 3,498,241 9,436,812 Custodian fees and expenses 812,579 474,114 1,286,693 Legal and auditing fees 75,976 48,195 (45,195)(2) 78,976 Shareholder reports 774,249 592,412 (125,000)(2) 1,241,661 Trustees/directors' fees and expenses 44,237 29,877 (26,877)(2) 47,237 Registration and filing fees(3) 2,077,649 288,795 2,366,444 Other 64,846 21,128 85,974 -------------------------------------------------------------------- Total expenses 58,546,696 25,179,334 (6,708,692) 77,017,338 -------------------------------------------------------------------- Less assumption of expenses by Centennial Asset Management Corp. (4,890,123) (1,398,800) 6,288,923 (4) - -------------------------------------------------------------------- Net expenses 53,656,573 23,780,534 (419,769) 77,017,338 ------------------------------------------------------------------- NET INVESTMENT INCOME 390,168,132 171,888,275 419,769 562,476,176 -------------------------------------------------------------------- REALIZED GAIN ON INVESTMENTS 12,890 7,131 20,021 -------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $390,181,022 $171,895,406 $ 419,769 $562,496,197 ==================================================================== (1) The Manager has agreed to amend its Investment Advisory Agreement with Money Market Trust to incorporate the voluntary fee waiver into the management fee upon the completion of the Reorganization. The effective fee upon completion of the Reorganiztion will be: 0.50% on the first $250 million of the net assets with a reduction of 0.025% on each $250 million thereafter to $1.50 billion, 0.35% on net assets in excess of $1.50 billion but less than $2 billion and 0.325% on net assets in excess of $2 billion. (2) Elimination of duplicate expense. (3) Does not include the registration and filing fees for Daily Cash Accumulation Fund, Inc. for the filing of additional shares acquired through the merger. (4) Expense assumption is not in effect upon completion of the Reorganization.
- ----------------------------------------------------------------------------------------------------- PRO FORMA COMBINING STATEMENT OF INVESTMENTS June 30, 1997(Unaudited) Centennial Money Market Trust and Daily Cash Accumulation Fund, Inc. FACE AMOUNT VALUE ---------------------------------------- ---------------------------------------------- Centennial Daily Cash Centennial Daily Cash Money Market Accumulation Combined Money Market Accumulation Combined Trust Fund, Inc. Pro Forma Trust Fund, Inc. Pro Forma =================================================================================================================================== BANKERS' ACCEPTANCES - 0.4% - ----------------------------------------------------------------------------------------------------------------------------------- BankBoston, N.A.: 5.28%, 8/18/97 $ 18,000,000 $ 7,000,000 $ 25,000,000 $ 17,873,280 $ 6,950,720 $ 24,824,000 5.60%, 10/24/97 -- 5,000,000 5,000,000 -- 4,910,555 4,910,555 - ----------------------------------------------------------------------------------------------------------------------------------- Barnett Banks, Inc., 5.59%, 11/25/97 10,000,000 -- 10,000,000 9,771,742 -- 9,771,742 - ----------------------------------------------------------------------------------------------------------------------------------- Societe Generale, 5.64%, 10/15/97 -- 8,000,000 8,000,000 -- 7,867,147 7,867,147 --------------------------------------------- Total Bankers' Acceptances 27,645,022 19,728,422 47,373,444 =================================================================================================================================== CERTIFICATES OF DEPOSIT - 3.2% - ----------------------------------------------------------------------------------------------------------------------------------- DOMESTIC CERTIFICATES OF DEPOSIT - 0.7% - ----------------------------------------------------------------------------------------------------------------------------------- LaSalle National Bank: 5.46%, 7/1/97 20,000,000 5,000,000 25,000,000 20,000,000 5,000,000 25,000,000 5.52%, 7/9/97 17,000,000 8,000,000 25,000,000 17,000,000 8,000,000 25,000,000 5.67%, 10/17/97 25,000,000 -- 25,000,000 25,000,000 -- 25,000,000 5.53%, 7/2/97 -- 10,000,000 10,000,000 -- 10,000,000 10,000,000 ------------------------------------------- 62,000,000 23,000,000 85,000,000 - --------------------------------------------------------------------------------------------------------------------------------- YANKEE CERTIFICATES OF DEPOSIT - 2.5% - --------------------------------------------------------------------------------------------------------------------------------- ABN Amro North America Finance, Inc., 5.49%, 7/11/97 35,000,000 15,000,000 50,000,000 35,000,191 15,000,082 50,000,273 - --------------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, 5.55%, 7/3/97 10,000,000 -- 10,000,000 9,999,952 -- 9,999,952 - --------------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, 5.55%, 7/14/97 -- 10,000,000 10,000,000 -- 10,000,035 10,000,035 - --------------------------------------------------------------------------------------------------------------------------------- Societe Generale: 5.45%, 7/14/97 25,000,000 -- 25,000,000 25,000,398 -- 25,000,398 5.68%, 8/21/97 18,000,000 7,000,000 25,000,000 18,000,206 7,000,081 25,000,287 5.68%, 8/21/97 20,000,000 10,000,000 30,000,000 19,999,850 9,999,925 29,999,775 5.72%, 10/21/97 30,000,000 10,000,000 40,000,000 29,969,410 9,989,803 39,959,213 5.75%, 12/23/97 15,000,000 15,000,000 30,000,000 15,000,000 15,000,000 30,000,000 5.75%, 12/23/97 10,000,000 15,000,000 25,000,000 10,000,000 15,000,000 25,000,000 5.75%, 8/18/97 15,000,000 -- 15,000,000 15,000,000 -- 15,000,000 5.75%, 8/8/97 15,000,000 10,000,000 25,000,000 15,000,000 10,000,000 25,000,000 5.92%, 9/17/97 20,000,000 10,000,000 30,000,000 20,012,065 10,006,032 30,018,097 ------------------------------------------- 212,982,072 101,995,958 314,978,030 ------------------------------------------- Total Certificates of Deposit 274,982,072 124,995,958 399,978,030 ================================================================================================================================= DIRECT BANK OBLIGATIONS - 5.5% - --------------------------------------------------------------------------------------------------------------------------------- Abbey National North America Corp.: 5.275%, 8/21/97 20,000,000 10,000,000 30,000,000 19,850,542 9,925,271 29,775,813 5.39%, 7/11/97 72,000,000 10,000,000 82,000,000 71,892,339 9,985,014 81,877,353 - --------------------------------------------------------------------------------------------------------------------------------- ABN Amro North America Finance, Inc.: 5.28%, 7/23/97 50,000,000 10,000,000 60,000,000 49,835,611 9,967,122 59,802,733 5.37%, 7/11/97 35,000,000 15,000,000 50,000,000 34,947,792 14,977,625 49,925,417 - --------------------------------------------------------------------------------------------------------------------------------- Bank One Dayton N.A., 5.70%, 11/3/97(1) 15,000,000 -- 15,000,000 14,997,187 -- 14,997,187 - --------------------------------------------------------------------------------------------------------------------------------- BankBoston, N.A.: 5.05%, 1/20/98 15,000,000 -- 15,000,000 15,000,000 -- 15,000,000 5.53%, 7/11/97 15,000,000 10,000,000 25,000,000 15,000,000 10,000,000 25,000,000 5.69%, 8/27/97 30,000,000 -- 30,000,000 30,000,000 -- 30,000,000 5.69%, 8/29/97 40,000,000 10,000,000 50,000,000 40,000,000 10,000,000 50,000,000 5.69%, 9/8/97 15,000,000 5,000,000 20,000,000 15,000,000 5,000,000 20,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Bankers Trust Co., New York: 5.37%, 12/10/97(1) 17,000,000 8,000,000 25,000,000 16,998,186 7,999,147 24,997,333 5.60%, 11/26/97(1) 25,000,000 10,000,000 35,000,000 24,993,026 9,997,210 34,990,236 5.66%, 6/9/98(1) 17,000,000 8,000,000 25,000,000 16,992,249 7,996,352 24,988,601 5.70%, 10/17/97(1) 10,000,000 -- 10,000,000 9,999,126 -- 9,999,126 5.70%, 4/3/98(1) 10,000,000 -- 10,000,000 9,996,809 -- 9,996,809 5.71%, 4/15/98(1) 5,000,000 -- 5,000,000 5,000,000 -- 5,000,000 - --------------------------------------------------------------------------------------------------------------------------------- CoreStates Capital Corp., 5.608%, 12/18/97(1) 13,000,000 -- 13,000,000 12,996,562 -- 12,996,562 - --------------------------------------------------------------------------------------------------------------------------------- FCC National Bank: 5.60%, 5/8/98(1) 20,000,000 10,000,000 30,000,000 19,993,336 9,996,668 29,990,004 5.63%, 8/21/97(1) 20,000,000 -- 20,000,000 19,999,595 -- 19,999,595 - --------------------------------------------------------------------------------------------------------------------------------- Huntington National Bank, 5.53%, 7/9/97 15,000,000 -- 15,000,000 15,000,000 -- 15,000,000 - --------------------------------------------------------------------------------------------------------------------------------- National Westminster Bank of Canada: 5.38%, 7/2/97 7,000,000 -- 7,000,000 6,998,954 -- 6,998,954 5.38%, 7/7/97 15,000,000 -- 15,000,000 14,986,550 -- 14,986,550 - --------------------------------------------------------------------------------------------------------------------------------- Societe Generale North America, Inc.: 5.39%, 7/14/97 20,000,000 15,000,000 35,000,000 19,961,072 14,970,804 34,931,876 5.60%, 9/8/97 -- 25,000,000 25,000,000 -- 24,731,667 24,731,667 5.61%, 9/2/97 15,000,000 10,000,000 25,000,000 14,852,737 9,901,825 24,754,562 5.59%, 12/10/97 -- 8,000,000 8,000,000 -- 7,798,760 7,798,760 - --------------------------------------------------------------------------------------------------------------------------------- Westdeutsche Landesbank Girozentrale, 5.58%, 12/22/97 13,500,000 -- 13,500,000 13,135,905 -- 13,135,905 ------------------------------------------- Total Direct Bank Obligations 528,427,578 163,247 465 691,675,043 ================================================================================================================================= LETTERS OF CREDIT - 4.3% - --------------------------------------------------------------------------------------------------------------------------------- ABN Amro Bank, N.V., guaranteeing commercial paper of: Formosa Plastics Corp. USA-Series A: 5.60%, 8/26/97 -- 10,000,000 10,000,000 -- 9,912,889 9,912,889 5.60%, 9/22/97 -- 5,000,000 5,000,000 -- 4,935,444 4,935,444 5.63%, 8/28/97 -- 15,000,000 15,000,000 -- 14,863,942 14,863,942 - --------------------------------------------------------------------------------------------------------------------------------- Bank of America, guaranteeing commercial paper of Formosa Plastics Corp. USA- Series B, 5.57%, 10/27/97 25,000,000 -- 25,000,000 24,543,569 -- 24,543,569 - --------------------------------------------------------------------------------------------------------------------------------- Bank of America NT & SA, guaranteeing commercial paper of: Hyundai Motor Finance Co., 5.38%, 7/7/97 -- 5,000,000 5,000,000 -- 4,995,517 4,995,517 - --------------------------------------------------------------------------------------------------------------------------------- Bank One, Cleveland, guaranteeing commercial paper of: Capital One Funding Corp.: Series 1995F, 5.63%, 7/13/97(1)(2) 10,496,000 10,404,000 20,900,000 10,496,000 10,404,000 20,900,000 Series 1995F, 5.63%, 7/13/97(1)(2) 8,750,000 8,750,000 17,500,000 8,750,000 8,750,000 17,500,000 - --------------------------------------------------------------------------------------------------------------------------------- Barclays Bank PLC, guaranteeing commercial paper of: Banco Bradesco SA-Grand Cayman Branch- Series A, 5.58%, 10/21/97 20,000,000 -- 20,000,000 19,652,800 -- 19,652,800 Banco Bradesco SA-Grand Cayman Branch- Series A, 5.62%, 9/4/97 20,000,000 -- 20,000,000 19,797,056 -- 19,797,056 Banco Bradesco SA-Grand Cayman Branch- Series A, 5.65%, 12/1/97 5,000,000 5,000,000 10,000,000 4,879,937 4,881,212 9,761,149 Banco Bradesco SA-Grand Cayman Branch, Series A, 5.69%, 12/3/97 -- 13,000,000 13,000,000 -- 12,681,518 12,681,518 Banco Bradesco SA-Grand Cayman Branch- Series B, 5.59%, 12/2/97 22,000,000 -- 22,000,000 21,473,919 -- 21,473,919 Banco Bradesco SA-Grand Cayman Branch- Series B, 5.62%, 12/3/97 5,000,000 5,000,000 10,000,000 4,879,014 4,879,014 9,758,028 Banco Nacionale de Mexico SA-Series B, 5.64%, 7/8/97 15,000,000 -- 15,000,000 14,983,550 -- 14,983,550 Banco Nacionale de Mexico SA-Series B, 5.63%, 7/1/97 -- 10,000,000 10,000,000 -- 10,000,000 10,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Bayerische Vereinsbank AG, guaranteeing commercial paper of: Galicia Funding Corp.- Series B, 5.62%, 9/5/97(3) 10,000,000 -- 10,000,000 9,896,967 -- 9,896,967 Series A, 5.63%, 9/5/97(3) -- 10,000,000 10,000,000 -- 9,896,783 9,896,783 Series A, 5.65%, 12/5/97(3) -- 13,000,000 13,000,000 -- 12,681,421 12,681,421 - --------------------------------------------------------------------------------------------------------------------------------- Credit Suisse, guaranteeing commercial paper of: CEMEX, S.A. de C.V.-Series A, 5.31%, 8/18/97 15,000,000 5,000,000 20,000,000 14,893,800 4,964,600 19,858,400 CEMEX, S.A. de C.V.-Series B, 5.61%, 8/22/97 -- 17,000,000 17,000,000 -- 16,862,243 16,862,243 CEMEX, S.A. de C.V.-Series B, 5.68%, 8/19/97 -- 5,750,000 5,750,000 -- 5,706,016 5,706,016 COSCO (Cayman) Co., Ltd., 5.59%, 10/24/97 10,000,000 5,000,000 15,000,000 9,821,431 4,910,715 14,732,146 COSCO (Cayman) Co., Ltd., 5.62%, 8/19/97 15,000,000 -- 15,000,000 14,885,258 -- 14,885,258 Daewoo International Corp., 5.45%, 7/15/97 9,000,000 6,000,000 15,000,000 8,980,925 5,987,283 14,968,208 Daewoo International Corp., 5.60%, 9/9/97 10,000,000 10,000,000 20,000,000 9,891,111 9,891,111 19,782,222 Guangdon Enterprises Ltd., 5.67%, 8/19/97 6,000,000 5,000,000 11,000,000 5,953,613 4,961,412 10,915,025 Minmetals Capitals & Securities, Inc., 5.61%, 8/12/97 10,000,000 5,000,000 15,000,000 9,934,550 4,967,275 14,901,825 Pemex Capital, Inc.-Series B, 5.62%, 11/3/97 5,000,000 5,000,000 10,000,000 4,902,431 4,902,431 9,804,862 Pemex Capital, Inc.-Series A, 5.28%, 7/14/97 -- 25,000,000 25,000,000 -- 24,952,388 24,952,388 - --------------------------------------------------------------------------------------------------------------------------------- Societe Generale, guaranteeing commercial paper of: Banco Nacionale de Comercio Exterior, SNC-Series A, 5.61%, 11/25/97 30,000,000 5,000,000 35,000,000 29,312,775 4,885,463 34,198,238 Banco Nacionale de Comercio Exterior, SNC-Series A, 5.61%, 12/1/97 22,500,000 -- 22,500,000 21,963,544 -- 21,963,544 Banco Nacionale de Comercio Exterior, SNC-Series B, 5.61%, 12/1/97 10,000,000 10,000,000 20,000,000 9,761,575 9,761,575 19,523,150 Girsa Funding Corp., 5.57%, 7/2/97(3) 8,200,000 -- 8,200,000 8,198,731 -- 8,198,731 Nacional Financiera SNC-Series A, 5.60%, 8/20/97 10,000,000 -- 10,000,000 9,922,222 -- 9,922,222 Nacional Financiera SNC-Series A, 5.75%, 8/18/97 20,000,000 -- 20,000,000 19,846,667 -- 19,846,667 Nacional Financiera SNC-Series A, 5.75%, 8/18/97 -- 10,000,000 10,000,000 -- 9,923,333 9,923,333 ------------------------------------------- Total Letters of Credit 317,621,445 221,557,585 539,179,030 ================================================================================================================================= SHORT-TERM NOTES - 81.1% - --------------------------------------------------------------------------------------------------------------------------------- AUTOMOTIVE - 1.1% BMW US Capital Corp.: 5.60%, 8/20/97 20,000,000 20,000,000 40,000,000 19,844,444 19,844,444 39,688,888 5.60%, 8/25/97 65,740,000 10,000,000 75,740,000 65,177,558 9,914,444 75,092,002 5.62%, 8/26/97 -- 10,425,000 10,425,000 -- 10,333,862 10,333,862 5.65%, 8/5/97 -- 10,000,000 10,000,000 -- 9,945,069 9,945,069 ------------------------------------------- 85,022,002 50,037,819 135,059,821 - --------------------------------------------------------------------------------------------------------------------------------- BANK HOLDING COMPANIES - 1.4% Bankers Trust New York Corp., 5.39%, 7/9/97 15,000,000 25,000,000 40,000,000 14,982,033 24,970,056 39,952,089 - --------------------------------------------------------------------------------------------------------------------------------- Barnett Banks, Inc., 5.70%, 7/7/97 35,000,000 15,000,000 50,000,000 34,966,750 14,985,750 49,952,500 - --------------------------------------------------------------------------------------------------------------------------------- CoreStates Capital Corp., 5.61%, 7/14/97(1) 15,000,000 5,000,000 20,000,000 15,000,000 5,000,000 20,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Morgan (J.P.) & Co., Inc., 5.38%, 7/9/97 20,000,000 10,000,000 30,000,000 19,976,089 9,988,044 29,964,133 - --------------------------------------------------------------------------------------------------------------------------------- NationsBank Corp., 5.37%, 7/8/97 9,000,000 16,000,000 25,000,000 8,990,602 15,983,293 24,973,895 - --------------------------------------------------------------------------------------------------------------------------------- Norwest Corp., 7.70%, 11/15/97 -- 5,000,000 5,000,000 -- 5,031,092 5,031,092 ------------------------------------------- 93,915,474 75,958,235 169,873,709 - --------------------------------------------------------------------------------------------------------------------------------- BANKS - 1.5% - --------------------------------------------------------------------------------------------------------------------------------- BankBoston, N.A.: 5.42%, 8/19/97 25,000,000 -- 25,000,000 25,000,000 -- 25,000,000 5.69%, 9/4/97 30,000,000 -- 30,000,000 30,000,000 -- 30,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Bankers Trust Co., New York: 5.39%, 7/7/97 50,000,000 -- 50,000,000 49,955,083 -- 49,955,083 5.69%, 4/23/98(1) 10,000,000 -- 10,000,000 9,996,837 -- 9,996,837 - --------------------------------------------------------------------------------------------------------------------------------- FCC National Bank: 5.62%, 2/20/98(1) 15,000,000 -- 15,000,000 14,995,294 -- 14,995,294 5.69%, 9/11/97 25,000,000 -- 25,000,000 25,000,000 -- 25,000,000 5.87%, 11/10/97 32,000,000 -- 32,000,000 32,008,127 -- 32,008,127 ------------------------------------------- 186,955,341 -- 186,955,341 - --------------------------------------------------------------------------------------------------------------------------------- BEVERAGES - 0.9% Coca-Cola Enterprises, Inc.: 5.65%, 7/21/97(3) 25,000,000 -- 25,000,000 24,921,528 -- 24,921,528 5.66%, 7/24/97(3) 20,000,000 5,000,000 25,000,000 19,927,678 4,981,919 24,909,597 5.67%, 8/5/97(3) 25,000,000 -- 25,000,000 24,862,187 -- 24,862,187 5.68%, 7/14/97(3) 10,000,000 5,000,000 15,000,000 9,979,489 4,989,744 14,969,233 5.70%, 8/21/97(3) 25,000,000 -- 25,000,000 24,798,125 -- 24,798,125 ------------------------------------------- 104,489,007 9,971,663 114,460,670 - --------------------------------------------------------------------------------------------------------------------------------- BROKER/DEALERS - 15.9% Bear Stearns Cos., Inc.: 5.42%, 10/16/97(1) -- 5,000,000 5,000,000 -- 4,999,386 4,999,386 5.43%, 4/21/98(1) -- 5,000,000 5,000,000 -- 4,999,916 4,999,916 5.44%, 5/22/98(1) 18,000,000 7,000,000 25,000,000 18,000,000 7,000,000 25,000,000 5.47% 8/1/97(1) 20,000,000 -- 20,000,000 20,000,000 -- 20,000,000 5.60%, 8/20/97 25,000,000 10,000,000 35,000,000 24,805,556 9,922,222 34,727,778 5.60%, 8/4/97 30,000,000 -- 30,000,000 29,841,333 -- 29,841,333 5.61%, 8/27/97 35,000,000 15,000,000 50,000,000 34,689,112 14,866,762 49,555,874 5.61%, 8/28/97 30,000,000 10,000,000 40,000,000 29,728,850 9,909,617 39,638,467 5.61%, 9/22/97 18,000,000 7,000,000 25,000,000 17,767,185 6,909,461 24,676,646 5.62%, 9/11/97 25,000,000 -- 25,000,000 24,719,000 -- 24,719,000 5.62%, 9/2/97 15,000,000 15,000,000 30,000,000 14,852,475 14,852,475 29,704,950 5.62%, 9/4/97 25,000,000 10,000,000 35,000,000 24,746,319 9,898,528 34,644,847 5.63%, 7/14/97 34,000,000 16,000,000 50,000,000 33,930,876 15,967,471 49,898,347 5.64%, 10/6/97 35,000,000 15,000,000 50,000,000 34,468,117 14,772,050 49,240,167 5.66%, 7/8/97 49,891,000 18,000,000 67,891,000 49,836,197 17,980,190 67,816,387 5.668%, 4/3/98(1) 15,000,000 -- 15,000,000 15,000,000 -- 15,000,000 5.677%, 2/9/98(1) 15,000,000 5,000,000 20,000,000 15,018,858 5,006,286 20,025,144 5.75%, 4/1/98(1) 10,000,000 -- 10,000,000 10,000,000 -- 10,000,000 - --------------------------------------------------------------------------------------------------------------------------------- CS First Boston, Inc.: 5.36%, 7/11/97 18,000,000 5,000,000 23,000,000 17,973,200 4,992,556 22,965,756 5.42%, 5/12/98(1) 20,000,000 5,000,000 25,000,000 20,000,000 5,000,000 25,000,000 5.43%, 6/2/98(1) 20,000,000 5,000,000 25,000,000 20,000,000 5,000,000 25,000,000 5.43%, 7/8/97(3) 25,000,000 -- 25,000,000 24,973,604 -- 24,973,604 5.60%, 8/28/97 25,000,000 -- 25,000,000 24,774,444 -- 24,774,444 5.617%, 3/13/98(1) 17,000,000 8,000,000 25,000,000 17,000,000 8,000,000 25,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Dean Witter, Discover & Co., 5.888%, 9/29/97 20,000,000 -- 20,000,000 20,010,940 -- 20,010,940 - --------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Group, L.P.: 5.60%, 9/12/97 35,000,000 15,000,000 50,000,000 34,602,556 14,829,667 49,432,223 5.61%, 9/10/97 35,000,000 15,000,000 50,000,000 34,612,754 14,834,037 49,446,791 5.62%, 10/6/97 35,000,000 10,000,000 45,000,000 34,470,003 9,848,572 44,318,575 5.62%, 9/4/97 35,000,000 15,000,000 50,000,000 34,644,847 14,847,792 49,492,639 5.62%, 9/8/97 25,000,000 -- 25,000,000 24,730,708 -- 24,730,708 5.78%, 9/22/97 30,000,000 -- 30,000,000 30,000,000 -- 30,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Group, L.P., Promissory Nts.: 5.844%, 10/10/97(2) 15,000,000 6,000,000 21,000,000 15,000,000 6,000,000 21,000,000 5.87%, 11/10/97(2) 20,000,000 10,000,000 30,000,000 20,000,000 10,000,000 30,000,000 5.88%, 12/12/97(2) 35,000,000 15,000,000 50,000,000 35,000,000 15,000,000 50,000,000 5.89%, 9/4/97(2) 20,000,000 10,000,000 30,000,000 20,000,000 10,000,000 30,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc.: 5.62%, 11/21/97 28,000,000 10,000,000 38,000,000 27,374,931 9,776,761 37,151,692 5.63%, 8/22/97 10,000,000 5,000,000 15,000,000 9,918,678 4,959,339 14,878,017 5.64%, 7/2/97 35,000,000 -- 35,000,000 34,994,517 -- 34,994,517 5.64%, 9/10/97 20,000,000 20,000,000 40,000,000 19,777,533 19,777,533 39,555,066 5.65%, 7/10/97 25,000,000 10,000,000 35,000,000 24,964,687 9,985,875 34,950,562 5.65%, 7/7/97 25,000,000 10,000,000 35,000,000 24,976,458 9,990,583 34,967,041 5.677%, 2/3/98(1) 15,000,000 10,000,000 25,000,000 15,000,000 10,000,000 25,000,000 5.771%, 6/18/98(1) 35,000,000 10,000,000 45,000,000 35,106,786 10,030,510 45,137,296 - --------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc.: 5.28%, 7/3/97 15,000,000 5,000,000 20,000,000 14,995,600 4,998,533 19,994,133 5.36%, 7/2/97 25,000,000 10,000,000 35,000,000 24,996,239 9,998,511 34,994,750 5.39%, 7/18/97 15,000,000 -- 15,000,000 14,961,821 -- 14,961,821 5.40%, 7/11/97 20,000,000 -- 20,000,000 19,970,000 -- 19,970,000 5.40%, 7/9/97 10,000,000 5,000,000 15,000,000 9,988,000 4,994,000 14,982,000 5.58%, 10/15/97 20,000,000 -- 20,000,000 19,671,400 -- 19,671,400 5.58%, 10/29/97 -- 20,000,000 20,000,000 -- 19,628,000 19,628,000 5.58%, 12/15/97 21,000,000 9,000,000 30,000,000 20,456,415 8,767,035 29,223,450 5.59%, 12/1/97 20,000,000 -- 20,000,000 19,524,850 -- 19,524,850 5.60%, 8/25/97 15,000,000 -- 15,000,000 14,871,667 -- 14,871,667 5.60%, 8/29/97 15,000,000 5,000,000 20,000,000 14,862,333 4,954,111 19,816,444 5.62%, 8/28/97 20,000,000 -- 20,000,000 19,818,911 -- 19,818,911 5.62%, 9/3/97 20,000,000 -- 20,000,000 19,800,178 -- 19,800,178 5.63%, 7/14/97 27,000,000 28,000,000 55,000,000 26,945,107 27,943,074 54,888,181 5.648%, 1/8/98(1) 25,000,000 15,000,000 40,000,000 24,997,449 14,998,469 39,995,918 5.65%, 7/10/97 20,000,000 10,000,000 30,000,000 19,971,750 9,985,875 29,957,625 5.68%, 10/24/97(1) 25,000,000 10,000,000 35,000,000 24,998,425 9,999,370 34,997,795 5.68%, 3/18/98(1) 15,000,000 5,000,000 20,000,000 14,997,912 4,999,304 19,997,216 5.68%, 7/16/97 25,000,000 20,000,000 45,000,000 24,940,833 19,952,667 44,893,500 5.685%, 5/26/98(1) 17,000,000 8,000,000 25,000,000 16,997,720 7,998,927 24,996,647 5.70%, 8/12/97 13,000,000 5,000,000 18,000,000 12,913,550 4,966,750 17,880,300 5.70%, 9/19/97(1) 20,000,000 -- 20,000,000 20,000,000 -- 20,000,000 5.75%, 12/19/97(1) 35,000,000 15,000,000 50,000,000 34,999,661 14,999,774 49,999,435 - --------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley, Dean Witter, Discover & Co., 5.50%, 3/24/98 23,744,000 28,900,000 52,644,000 23,744,000 28,900,000 52,644,000 ------------------------------------------- 1,476,734,345 528,041,989 2,004,776,334 - --------------------------------------------------------------------------------------------------------------------------------- CHEMICALS - 0.8% Henkel Corp.: 5.58%, 10/17/97(3) 13,000,000 -- 13,000,000 12,782,380 -- 12,782,380 5.58%, 10/23/97 25,000,000 -- 25,000,000 24,558,250 -- 24,558,250 5.58%, 10/24/97(3) 25,000,000 -- 25,000,000 24,554,375 -- 24,554,375 5.61%, 9/11/97(3) 10,000,000 6,185,000 16,185,000 9,887,800 6,115,604 16,003,404 5.70%, 10/20/97(3) 29,000,000 -- 29,000,000 28,490,325 -- 28,490,325 ------------------------------------------- 100,273,130 6,115,604 106,388,734 - --------------------------------------------------------------------------------------------------------------------------------- COMMERCIAL FINANCE - 15.0% CIT Group Holdings, Inc.: 5.58%, 11/20/97(1) 70,000,000 15,000,000 85,000,000 69,980,400 14,995,578 84,975,978 5.60%, 12/23/97(1) 25,000,000 -- 25,000,000 24,990,703 -- 24,990,703 5.60%, 5/22/98(1) 35,000,000 15,000,000 50,000,000 34,978,936 14,990,973 49,969,909 5.60%, 8/26/97 65,000,000 10,000,000 75,000,000 64,433,778 9,912,889 74,346,667 5.625%, 9/17/97(1) 25,000,000 20,000,000 45,000,000 24,996,126 19,996,901 44,993,027 5.63%, 7/17/97 20,000,000 10,000,000 30,000,000 19,949,956 9,974,978 29,924,934 5.764%, 3/11/98(1) 11,000,000 38,500,000 49,500,000 11,000,000 38,500,000 49,500,000 - --------------------------------------------------------------------------------------------------------------------------------- Countrywide Home Loans: 5.57%, 7/1/97 50,000,000 15,000,000 65,000,000 50,000,000 15,000,000 65,000,000 5.57%, 7/9/97 -- 32,000,000 32,000,000 -- 31,960,391 31,960,391 5.59%, 9/18/97 20,000,000 20,000,000 40,000,000 19,754,661 19,754,661 39,509,322 5.60%, 8/13/97 40,000,000 -- 40,000,000 39,732,444 -- 39,732,444 5.60%, 8/25/97 69,095,000 -- 69,095,000 68,503,854 -- 68,503,854 5.61%, 8/27/97 20,000,000 10,000,000 30,000,000 19,822,350 9,911,175 29,733,525 5.62%, 8/14/97 15,000,000 10,000,000 25,000,000 14,896,967 9,931,311 24,828,278 5.62%, 8/26/97 -- 75,000,000 75,000,000 -- 74,343,556 74,343,556 5.62%, 8/28/97 40,000,000 -- 40,000,000 39,637,822 -- 39,637,822 5.63%, 8/29/97 40,000,000 -- 40,000,000 39,630,922 -- 39,630,922 5.63%, 9/4/97 50,000,000 -- 50,000,000 49,491,736 -- 49,491,736 - --------------------------------------------------------------------------------------------------------------------------------- FINOVA Capital Corp.: 5.30%, 7/14/97 20,000,000 5,000,000 25,000,000 19,961,217 4,990,431 24,951,648 5.40%, 7/1/97 -- 10,000,000 10,000,000 -- 10,000,000 10,000,000 5.40%, 7/21/97 25,000,000 5,000,000 30,000,000 24,922,667 4,985,000 29,907,667 5.43%, 7/10/97 5,000,000 5,000,000 10,000,000 4,993,212 4,993,212 9,986,424 5.44%, 7/7/97 -- 10,000,000 10,000,000 -- 9,990,775 9,990,775 5.47%, 7/11/97 10,000,000 10,000,000 20,000,000 9,984,806 9,984,806 19,969,612 5.47%, 7/16/97 5,000,000 5,000,000 10,000,000 4,988,604 4,988,604 9,977,208 5.61%, 10/16/97 15,000,000 -- 15,000,000 14,749,888 -- 14,749,888 5.61%, 10/22/97 25,000,000 -- 25,000,000 24,559,771 -- 24,559,771 5.61%, 10/30/97 55,000,000 15,000,000 70,000,000 53,962,929 14,717,162 68,680,091 5.61%, 10/31/97 10,000,000 -- 10,000,000 9,809,883 -- 9,809,883 5.61%, 11/21/97 12,000,000 8,000,000 20,000,000 11,732,590 7,821,727 19,554,317 5.61%, 11/7/97 5,000,000 5,000,000 10,000,000 4,899,488 4,899,487 9,798,975 5.62%, 11/10/97 -- 5,000,000 5,000,000 -- 4,896,967 4,896,967 5.63%, 11/25/97 15,000,000 -- 15,000,000 14,655,163 -- 14,655,163 5.63%, 8/21/97 20,000,000 10,000,000 30,000,000 19,840,483 9,920,242 29,760,725 5.63%, 9/15/97 5,000,000 -- 5,000,000 4,940,572 -- 4,940,572 5.63%, 12/4/97 -- 15,000,000 15,000,000 -- 14,634,050 14,634,050 5.64%, 11/14/97 20,000,000 13,000,000 33,000,000 19,573,867 12,723,013 32,296,880 5.64%, 9/8/97 20,000,000 10,000,000 30,000,000 19,783,800 9,891,900 29,675,700 5.65%, 9/12/97 20,000,000 -- 20,000,000 19,770,861 -- 19,770,861 5.65%, 9/4/97 25,000,000 -- 25,000,000 24,744,965 -- 24,744,965 5.65%, 9/19/97 -- 15,000,000 15,000,000 -- 14,811,667 14,811,667 5.69%, 12/3/97 29,000,000 -- 29,000,000 28,289,540 -- 28,289,540 5.69%, 12/11/97 -- 20,000,000 20,000,000 -- 19,484,739 19,484,739 5.72%, 8/15/97 25,000,000 -- 25,000,000 24,821,250 -- 24,821,250 - --------------------------------------------------------------------------------------------------------------------------------- Heller Financial, Inc.: 5.71%, 10/1/97(1) 30,000,000 20,000,000 50,000,000 29,998,488 19,998,992 49,997,480 5.71%, 10/10/97(1) 30,000,000 13,000,000 43,000,000 29,998,340 12,999,281 42,997,621 5.72%, 8/27/97 30,000,000 15,000,000 45,000,000 29,728,300 14,864,150 44,592,450 5.73%, 9/9/97 30,000,000 15,000,000 45,000,000 29,665,750 14,832,875 44,498,625 5.74%, 11/13/97 25,000,000 15,000,000 40,000,000 24,461,875 14,677,125 39,139,000 5.75%, 12/15/97 10,000,000 9,000,000 19,000,000 9,733,264 8,759,938 18,493,202 5.75%, 7/16/97 15,000,000 10,000,000 25,000,000 14,964,063 9,976,042 24,940,105 5.75%, 9/4/97 35,000,000 10,000,000 45,000,000 34,636,632 9,896,181 44,532,813 5.75%, 9/8/97 20,000,000 7,000,000 27,000,000 19,779,583 6,922,854 26,702,437 5.80%, 10/9/97 45,000,000 20,000,000 65,000,000 44,275,000 19,677,778 63,952,778 5.80%, 12/22/97 35,000,000 15,000,000 50,000,000 34,018,833 14,579,500 48,598,333 5.831%, 12/18/97(1) 35,000,000 15,000,000 50,000,000 35,000,000 15,000,000 50,000,000 ------------------------------------------- 1,289,046,339 595,190,911 1,884,237,250 - --------------------------------------------------------------------------------------------------------------------------------- COMPUTER SOFTWARE - 0.8% First Data Corp.: 5.58%, 12/16/97 35,000,000 15,000,000 50,000,000 34,088,600 14,609,400 48,698,000 5.60%, 9/9/97 24,000,000 -- 24,000,000 23,738,667 -- 23,738,667 5.605%, 1/27/98 17,000,000 8,000,000 25,000,000 16,444,171 7,738,433 24,182,604 ------------------------------------------- 74,271,438 22,347,833 96,619,271 - --------------------------------------------------------------------------------------------------------------------------------- CONGLOMERATES - 0.9% Mitsubishi International Corp.: 5.55%, 7/3/97 68,850,000 -- 68,850,000 68,828,771 -- 68,828,771 5.60%, 9/15/97 5,000,000 9,800,000 14,800,000 4,940,889 9,684,142 14,625,031 5.61%, 8/20/97 20,000,000 10,000,000 30,000,000 19,844,167 9,922,083 29,766,250 ------------------------------------------- 93,613,827 19,606,225 113,220,052 - --------------------------------------------------------------------------------------------------------------------------------- CONSUMER FINANCE - 1.4% Island Finance Puerto Rico, Inc.: 5.60%, 9/10/97 -- 6,000,000 6,000,000 -- 5,933,733 5,933,733 5.60%, 9/15/97 10,000,000 -- 10,000,000 9,881,778 -- 9,881,778 5.61%, 8/25/97 -- 10,000,000 10,000,000 -- 9,914,292 9,914,292 5.61%, 8/29/97 17,000,000 8,000,000 25,000,000 16,843,699 7,926,447 24,770,146 5.61%, 9/2/97 20,000,000 -- 20,000,000 19,803,650 -- 19,803,650 5.61%, 9/8/97 5,000,000 -- 5,000,000 4,946,238 -- 4,946,238 5.62%, 8/15/97 15,000,000 -- 15,000,000 14,894,625 -- 14,894,625 - --------------------------------------------------------------------------------------------------------------------------------- Sears Roebuck Acceptance Corp.: 5.60%, 8/25/97 35,000,000 10,000,000 45,000,000 34,700,556 9,914,444 44,615,000 6.20%, 7/1/97 9,000,000 31,800,000 40,800,000 9,000,000 31,800,000 40,800,000 ------------------------------------------- 110,070,546 65,488,916 175,559,462 - --------------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL - 9.5% Associates Corp. of North America, 5.65%, 7/14/97 35,000,000 15,000,000 50,000,000 34,928,590 14,969,396 49,897,986 - --------------------------------------------------------------------------------------------------------------------------------- Ford Motor Credit Corp.: 5.57%, 10/15/97 75,000,000 -- 75,000,000 73,769,958 -- 73,769,958 5.57%, 10/30/97 50,000,000 -- 50,000,000 49,063,931 -- 49,063,931 5.57%, 11/20/97 42,500,000 30,000,000 72,500,000 41,566,251 29,340,883 70,907,134 5.58%, 12/8/97 30,000,000 -- 30,000,000 29,256,000 -- 29,256,000 - --------------------------------------------------------------------------------------------------------------------------------- General Electric Capital Corp.: 5.37%, 7/10/97 40,000,000 10,000,000 50,000,000 39,946,300 9,986,575 49,932,875 5.40%, 7/8/97 10,000,000 10,000,000 20,000,000 9,989,500 9,989,500 19,979,000 5.57%, 11/20/97 30,000,000 -- 30,000,000 29,340,883 -- 29,340,883 5.57%, 11/28/97 25,000,000 25,000,000 50,000,000 24,419,792 24,419,792 48,839,584 5.58%, 11/3/97 25,000,000 -- 25,000,000 24,515,625 -- 24,515,625 5.59%, 9/15/97 25,000,000 25,000,000 50,000,000 24,704,972 24,704,972 49,409,944 5.60%, 9/10/97 35,000,000 -- 35,000,000 34,613,444 -- 34,613,444 5.75%, 7/2/97 50,000,000 25,000,000 75,000,000 49,992,014 24,996,007 74,988,021 - --------------------------------------------------------------------------------------------------------------------------------- General Electric Capital Services: 5.36%, 7/16/97 18,000,000 7,000,000 25,000,000 17,959,800 6,984,367 24,944,167 5.57%, 11/24/97 50,000,000 -- 50,000,000 48,870,528 -- 48,870,528 - --------------------------------------------------------------------------------------------------------------------------------- General Motors Acceptance Corp.: 5.31%, 8/6/97 64,000,000 31,000,000 95,000,000 63,659,750 30,835,150 94,494,900 5.41%, 7/15/97 17,000,000 8,000,000 25,000,000 16,964,234 7,983,169 24,947,403 5.45%, 7/14/97 18,000,000 7,000,000 25,000,000 17,964,575 6,986,224 24,950,799 5.60%, 7/29/97 35,000,000 -- 35,000,000 34,847,556 -- 34,847,556 5.61%, 12/22/97 23,000,000 7,000,000 30,000,000 22,376,355 6,810,195 29,186,550 5.63%, 12/8/97 6,340,000 -- 6,340,000 6,181,359 -- 6,181,359 5.70%, 12/9/97 50,000,000 -- 50,000,000 48,725,417 -- 48,725,417 5.73%, 11/18/97 27,000,000 15,000,000 42,000,000 26,398,350 14,665,750 41,064,100 5.73%, 11/24/97 17,000,000 8,000,000 25,000,000 16,604,948 7,814,093 24,419,041 5.75%, 4/21/98(1) 30,000,000 15,000,000 45,000,000 29,987,616 14,993,808 44,981,424 6.25%, 7/1/97 46,000,000 -- 46,000,000 46,000,000 -- 46,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Household Finance Corp., 5.59%, 9/15/97 50,000,000 -- 50,000,000 49,409,944 -- 49,409,944 - --------------------------------------------------------------------------------------------------------------------------------- Prudential Funding Corp., 5.685%, 5/5/98(1) 35,000,000 10,000,000 45,000,000 34,992,873 9,997,964 44,990,837 ------------------------------------------- 947,050,565 245,477,845 1,192,528,410 - --------------------------------------------------------------------------------------------------------------------------------- DRUG WHOLESALERS - 0.3% Glaxo Wellcome PLC, 5.60%, 9/11/97 38,000,000 -- 38,000,000 37,574,400 -- 37,574,400 - --------------------------------------------------------------------------------------------------------------------------------- ELECTRONICS - 1.3% Avnet, Inc.: 5.66%, 8/8/97 10,000,000 -- 10,000,000 9,940,256 -- 9,940,256 5.55%, 8/6/97 -- 10,000,000 10,000,000 -- 9,943,400 9,943,400 5.67%, 7/14/97 -- 10,000,000 10,000,000 -- 9,979,525 9,979,525 - --------------------------------------------------------------------------------------------------------------------------------- Mitsubishi Electric Finance America, Inc.: 5.63%, 8/20/97 25,000,000 10,000,000 35,000,000 24,804,514 9,921,806 34,726,320 5.63%, 9/3/97(3) 5,000,000 35,000,000 40,000,000 4,949,956 34,649,689 39,599,645 5.65%, 8/27/97(3) -- 7,000,000 7,000,000 -- 6,937,379 6,937,379 5.66%, 8/6/97(3) 15,000,000 13,825,000 28,825,000 14,915,000 13,746,624 28,661,624 5.67%, 7/23/97(3) 5,000,000 5,000,000 10,000,000 4,982,675 4,982,675 9,965,350 5.68%, 8/13/97(3) 9,000,000 -- 9,000,000 8,938,940 -- 8,938,940 ------------------------------------------- 68,531,341 90,161,098 158,692,439 - --------------------------------------------------------------------------------------------------------------------------------- HEALTHCARE/SUPPLIES & SERVICES - 1.5% AC Acquisition Holding Co.: 5.61%, 8/15/97(3) 25,000,000 -- 25,000,000 24,824,688 -- 24,824,688 5.61%, 8/22/97 18,000,000 -- 18,000,000 17,854,140 -- 17,854,140 - --------------------------------------------------------------------------------------------------------------------------------- American Home Products Corp.: 5.62%, 9/10/97(3) 30,000,000 -- 30,000,000 29,667,483 -- 29,667,483 5.62%, 9/8/97(3) 45,000,000 25,000,000 70,000,000 44,515,275 24,730,708 69,245,983 5.63%, 7/14/97(3) -- 9,871,000 9,871,000 -- 9,850,932 9,850,932 5.63%, 9/3/97(3) -- 10,000,000 10,000,000 -- 9,899,911 9,899,911 5.63%, 9/4/97 25,000,000 -- 25,000,000 24,745,868 -- 24,745,868 ------------------------------------------- 141,607,454 44,481,551 186,089,005 - --------------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL SERVICES - 0.9% Atlas Copco AB, 5.625%, 8/25/97(3) 5,000,000 5,000,000 10,000,000 4,957,031 4,957,031 9,914,062 - --------------------------------------------------------------------------------------------------------------------------------- PHH Corp.: 5.658%, 1/27/98(1) 50,000,000 5,000,000 55,000,000 49,991,076 4,999,091 54,990,167 5.658%, 1/27/98(1) 27,000,000 -- 27,000,000 26,996,927 -- 26,996,927 5.698%, 1/15/98(1) 17,000,000 8,000,000 25,000,000 16,999,102 7,999,577 24,998,679 ------------------------------------------- 98,944,136 17,955,699 116,899,835 - --------------------------------------------------------------------------------------------------------------------------------- INSURANCE - 7.2% Allstate Life Insurance Co., 5.691%, 7/1/17(1) 40,000,000 10,000,000 50,000,000 40,000,000 10,000,000 50,000,000 - --------------------------------------------------------------------------------------------------------------------------------- General American Life Insurance Co., 5.89%, 7/1/97(1) 50,000,000 30,000,000 80,000,000 50,000,000 30,000,000 80,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Jackson National Life Insurance Co.: 5.71%, 3/1/98(1) 40,000,000 30,000,000 70,000,000 40,000,000 30,000,000 70,000,000 5.711%, 8/1/98(1) 30,000,000 15,000,000 45,000,000 30,000,000 15,000,000 45,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Pacific Mutual Life Insurance Co., 5.756%, 7/21/97(1)(2) 60,000,000 30,000,000 90,000,000 60,000,000 30,000,000 90,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Protective Life Insurance Co.: 5.751%, 11/25/97(1) 25,000,000 -- 25,000,000 25,000,000 -- 25,000,000 5.751%, 4/1/98(1) 15,000,000 10,000,000 25,000,000 15,000,000 10,000,000 25,000,000 5.773%, 1/31/00(1) -- 60,000,000 60,000,000 -- 60,000,000 60,000,000 5.841%, 7/21/97(1)(2) 10,000,000 20,000,000 30,000,000 10,000,000 20,000,000 30,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Prudential Life Insurance Co., 5.773%, 1/31/00(1) 140,000,000 -- 140,000,000 140,000,000 -- 140,000,000 - --------------------------------------------------------------------------------------------------------------------------------- TransAmerica Life Insurance & Annuity Co.: 5.687%, 5/15/98(1) 40,000,000 10,000,000 50,000,000 40,000,000 10,000,000 50,000,000 5.691%, 8/7/97(1) -- 25,000,000 25,000,000 -- 25,000,000 25,000,000 5.691%, 10/15/97(1) 50,000,000 25,000,000 75,000,000 50,000,000 25,000,000 75,000,000 5.691%, 9/30/97(1) 30,000,000 20,000,000 50,000,000 30,000,000 20,000,000 50,000,000 5.735%, 3/22/98(1) 43,000,000 -- 43,000,000 43,000,000 -- 43,000,000 - --------------------------------------------------------------------------------------------------------------------------------- TransAmerica Occidental Corp., 5.691%, 9/29/97(1) 30,000,000 20,000,000 50,000,000 30,000,000 20,000,000 50,000,000 ------------------------------------------- 603,000,000 305,000,000 908,000,000 - --------------------------------------------------------------------------------------------------------------------------------- LEASING & FACTORING - 1.9% American Honda Finance Corp.: 5.62%, 7/31/97 55,000,000 25,000,000 80,000,000 54,742,417 24,882,917 79,625,334 5.65%, 7/28/97 20,000,000 -- 20,000,000 19,915,250 -- 19,915,250 5.65%, 8/4/97 25,000,000 10,000,000 35,000,000 24,866,597 9,946,639 34,813,236 5.812%, 6/16/98(1) 15,000,000 5,000,000 20,000,000 15,000,000 5,000,000 20,000,000 - --------------------------------------------------------------------------------------------------------------------------------- International Lease Finance Corp.: 5.27%, 7/17/97 17,000,000 8,000,000 25,000,000 16,960,182 7,981,262 24,941,444 5.27%, 7/21/97 25,000,000 10,000,000 35,000,000 24,926,806 9,970,722 34,897,528 - --------------------------------------------------------------------------------------------------------------------------------- The Hertz Corp., 5.60%, 9/2/97 17,000,000 8,000,000 25,000,000 16,833,400 7,921,600 24,755,000 ------------------------------------------- 173,244,652 65,703,140 238,947,792 - --------------------------------------------------------------------------------------------------------------------------------- MANUFACTURING - 0.0% Rexam PLC, 5.67%, 8/12/97(3) -- 2,535,000 2,535,000 -- 2,518,231 2,518,231 - --------------------------------------------------------------------------------------------------------------------------------- METALS/MINING - 0.3% RTZ America, Inc.: 5.57%, 12/22/97(3) 14,000,000 5,500,000 19,500,000 13,623,097 5,351,931 18,975,028 5.58%, 12/19/97(3) 17,000,000 8,000,000 25,000,000 16,549,415 7,787,960 24,337,375 ------------------------------------------- 30,172,512 13,139,891 43,312,403 - --------------------------------------------------------------------------------------------------------------------------------- NONDURABLE HOUSEHOLD GOODS - 0.9% Avon Capital Corp.: 5.63%, 9/11/97(3) 8,000,000 -- 8,000,000 7,909,920 -- 7,909,920 5.63%, 9/29/97(3) 9,000,000 -- 9,000,000 8,873,325 -- 8,873,325 5.63%, 9/8/97(3) 8,500,000 8,000,000 16,500,000 8,408,278 7,913,673 16,321,951 5.64%, 8/28/97(3) 10,000,000 23,000,000 33,000,000 9,909,133 22,791,007 32,700,140 - --------------------------------------------------------------------------------------------------------------------------------- Newell Co.: 5.60%, 10/17/97(3) 20,000,000 5,000,000 25,000,000 19,664,000 4,916,000 24,580,000 5.60%, 9/19/97(3) 25,000,000 -- 25,000,000 24,688,889 -- 24,688,889 ------------------------------------------- 79,453,545 35,620,680 115,074,225 - --------------------------------------------------------------------------------------------------------------------------------- OIL-INTEGRATED - 0.4% Repsol International Finance BV: 5.35%, 7/1/97 -- 15,000,000 15,000,000 -- 15,000,000 15,000,000 5.39%, 7/15/97 11,000,000 -- 11,000,000 10,976,943 -- 10,976,943 5.60%, 12/9/97 24,000,000 -- 24,000,000 23,398,933 -- 23,398,933 ------------------------------------------- 34,375,876 15,000,000 49,375,876 - --------------------------------------------------------------------------------------------------------------------------------- SAVINGS & LOANS - 1.8% First Bank FSB, 5.658%, 8/29/97(1) 25,000,000 7,000,000 32,000,000 24,999,606 6,999,889 31,999,495 - --------------------------------------------------------------------------------------------------------------------------------- Great Western Bank FSB: 5.60%, 8/21/97 25,000,000 -- 25,000,000 24,801,667 -- 24,801,667 5.61%, 9/12/97 20,000,000 -- 20,000,000 19,772,483 -- 19,772,483 5.61%, 9/17/97 15,000,000 7,000,000 22,000,000 14,817,675 6,914,915 21,732,590 5.61%, 9/19/97 25,000,000 -- 25,000,000 24,688,333 -- 24,688,333 5.62%, 9/11/97 40,000,000 10,000,000 50,000,000 39,550,700 9,887,800 49,438,500 5.62%, 8/27/97 -- 35,000,000 35,000,000 -- 34,688,954 34,688,954 - --------------------------------------------------------------------------------------------------------------------------------- Household Bank FSB., 5.71%, 9/19/97(1) 25,000,000 -- 25,000,000 25,000,000 -- 25,000,000 ------------------------------------------- 173,630,464 58,491,558 232,122,022 - --------------------------------------------------------------------------------------------------------------------------------- SPECIAL PURPOSE FINANCIAL - 15.2% Asset Backed Capital Finance, Inc.: 5.60%, 11/17/97(3) 5,000,000 4,000,000 9,000,000 4,891,889 3,913,511 8,805,400 5.60%, 12/26/97(1)(2) 40,000,000 -- 40,000,000 39,987,424 -- 39,987,424 5.65%, 7/8/97(3) -- 17,400,000 17,400,000 -- 17,380,884 17,380,884 5.65%, 9/8/97 11,510,000 -- 11,510,000 11,385,356 -- 11,385,356 5.66%, 3/16/98(1)(2) 15,000,000 5,000,000 20,000,000 14,995,248 4,998,416 19,993,664 5.66%, 8/1/97(3) 48,000,000 -- 48,000,000 47,766,053 -- 47,766,053 5.67%, 12/1/97(3) -- 23,200,000 23,200,000 -- 22,640,938 22,640,938 5.68%, 7/22/97(3) 30,000,000 -- 30,000,000 29,900,600 -- 29,900,600 5.687%, 12/15/97(1)(2) 35,000,000 15,000,000 50,000,000 34,994,313 14,997,563 49,991,876 5.70%, 8/22/97(3) 25,000,000 -- 25,000,000 24,794,167 -- 24,794,167 - --------------------------------------------------------------------------------------------------------------------------------- Asset Backed Securities Investment Trust-Series 1997A, 5.738%, 2/16/98(1)(2) 20,000,000 15,000,000 35,000,000 19,998,751 14,999,063 34,997,814 - --------------------------------------------------------------------------------------------------------------------------------- Asset Securitization Cooperative Corp.: 5.59%, 12/3/97(3) 10,000,000 -- 10,000,000 9,759,319 -- 9,759,319 5.60%, 9/18/97(3) 21,000,000 -- 21,000,000 20,741,933 -- 20,741,933 5.62%, 9/5/97(3) 50,000,000 -- 50,000,000 49,484,833 -- 49,484,833 5.62%, 9/8/97(3) 30,000,000 -- 30,000,000 29,676,850 -- 29,676,850 5.63%, 8/1/97(3) 15,000,000 -- 15,000,000 14,927,279 -- 14,927,279 5.63%, 8/4/97(3) -- 10,000,000 10,000,000 -- 9,946,828 9,946,828 5.64%, 7/7/97(3) -- 55,000,000 55,000,000 -- 54,948,300 54,948,300 - --------------------------------------------------------------------------------------------------------------------------------- Beta Finance, Inc.: 5.61%, 9/5/97(3) 19,000,000 9,000,000 28,000,000 18,804,585 8,907,435 27,712,020 5.62%, 9/26/97(3) 14,500,000 12,000,000 26,500,000 14,303,066 11,837,020 26,140,086 5.62%, 9/8/97(3) 46,000,000 8,000,000 54,000,000 45,504,848 7,913,827 53,418,675 5.65%, 7/11/97(3) 23,000,000 -- 23,000,000 22,963,903 -- 22,963,903 - --------------------------------------------------------------------------------------------------------------------------------- Corporate Asset Funding Co., Inc.: 5.60%, 12/12/97(3) 7,000,000 18,000,000 25,000,000 6,821,422 17,540,800 24,362,222 5.60%, 8/25/97(3) 35,000,000 15,000,000 50,000,000 34,700,556 14,871,667 49,572,223 - --------------------------------------------------------------------------------------------------------------------------------- CXC, Inc.: 5.58%, 9/26/97(3) 30,000,000 -- 30,000,000 29,595,450 -- 29,595,450 5.59%, 9/8/97(3) 35,000,000 15,000,000 50,000,000 34,625,004 14,839,288 49,464,292 5.61%, 9/10/97(3) 30,000,000 -- 30,000,000 29,668,075 -- 29,668,075 5.62%, 7/3/97(3) 40,000,000 10,000,000 50,000,000 39,987,511 9,996,878 49,984,389 5.62%, 8/15/97(3) 18,000,000 7,000,000 25,000,000 17,873,550 6,950,825 24,824,375 5.62%, 9/3/97(3) 25,000,000 20,000,000 45,000,000 24,750,222 19,800,178 44,550,400 5.62%, 11/17/97(3) -- 5,000,000 5,000,000 -- 4,891,503 4,891,503 5.63%, 7/7/97(3) 10,966,000 -- 10,966,000 10,955,710 -- 10,955,710 5.63%, 7/9/97(3) 30,000,000 10,000,000 40,000,000 29,962,467 9,987,489 39,949,956 5.67%, 8/14/97(3) 32,000,000 -- 32,000,000 31,779,768 -- 31,779,768 - --------------------------------------------------------------------------------------------------------------------------------- Enterprise Funding Corp.: 5.61%, 8/11/97(3) 15,000,000 10,000,000 25,000,000 14,904,163 9,936,108 24,840,271 5.62%, 7/14/97(3) 11,364,000 -- 11,364,000 11,340,937 -- 11,340,937 5.65%, 7/16/97(3) 17,000,000 8,000,000 25,000,000 16,959,979 7,981,167 24,941,146 5.67%, 8/15/97(3) 21,482,000 -- 21,482,000 21,329,746 -- 21,329,746 5.67%, 8/18/97(3) 15,000,000 -- 15,000,000 14,886,600 -- 14,886,600 5.64%, 8/28/97(3) -- 20,097,000 20,097,000 -- 19,914,385 19,914,385 5.65%, 12/10/97(3) -- 10,000,000 10,000,000 -- 9,745,750 9,745,750 - --------------------------------------------------------------------------------------------------------------------------------- Falcon Asset Securitization Corp.: 5.60%, 7/28/97(3) 50,000,000 38,400,000 88,400,000 49,790,000 38,238,720 88,028,720 5.67%, 8/18/97(3) -- 10,800,000 10,800,000 -- 10,718,352 10,718,352 - --------------------------------------------------------------------------------------------------------------------------------- New Center Asset Trust, 5.27%, 7/28/97 25,000,000 20,000,000 45,000,000 24,901,188 19,920,950 44,822,138 - --------------------------------------------------------------------------------------------------------------------------------- Preferred Receivables Funding Corp.: 5.40%, 7/10/97 -- 5,375,000 5,375,000 -- 5,367,744 5,367,744 5.58%, 10/16/97 15,000,000 -- 15,000,000 14,751,225 -- 14,751,225 5.60%, 11/18/97 14,000,000 -- 14,000,000 13,695,111 -- 13,695,111 5.60%, 9/8/97 36,800,000 -- 36,800,000 36,405,013 -- 36,405,013 5.62%, 8/28/97 -- 10,350,000 10,350,000 -- 10,256,287 10,256,287 5.65%, 12/8/97 20,000,000 -- 20,000,000 19,497,778 -- 19,497,778 - --------------------------------------------------------------------------------------------------------------------------------- Providian MasterTrust 1993-3: 5.61%, 9/10/97(3) 24,500,000 -- 24,500,000 24,228,928 -- 24,228,928 5.62%, 9/11/97(3) 11,000,000 -- 11,000,000 10,876,360 -- 10,876,360 - --------------------------------------------------------------------------------------------------------------------------------- RACERS Series 1996-MM-12-3, 5.687%, 12/15/97(1)(2) 25,000,000 15,000,000 40,000,000 25,000,000 15,000,000 40,000,000 - --------------------------------------------------------------------------------------------------------------------------------- RACERS Series 1997-MM-1-1, 5.687%, 1/15/98(1)(2) 38,000,000 12,000,000 50,000,000 37,991,827 11,997,414 49,989,241 - --------------------------------------------------------------------------------------------------------------------------------- Sigma Finance, Inc.: 5.40%, 7/21/97(3) 15,000,000 -- 15,000,000 14,955,000 -- 14,955,000 5.59%, 7/28/97(3) 15,000,000 -- 15,000,000 14,937,113 -- 14,937,113 5.60%, 10/15/97(3) 13,500,000 13,000,000 26,500,000 13,277,400 12,785,644 26,063,044 5.60%, 11/17/97(3) 6,000,000 -- 6,000,000 5,870,267 -- 5,870,267 5.60%, 12/4/97(3) -- 3,000,000 3,000,000 -- 2,927,200 2,927,200 5.61%, 8/27/97(3) -- 6,500,000 6,500,000 -- 6,442,264 6,442,264 5.61%, 8/29/97(3) 15,000,000 -- 15,000,000 14,862,088 -- 14,862,088 5.62%, 9/10/97(3) 15,600,000 15,000,000 30,600,000 15,427,091 14,833,742 30,260,833 5.63%, 9/5/97(3) 20,000,000 -- 20,000,000 19,793,567 -- 19,793,567 5.64%, 8/28/97(3) 40,000,000 10,000,000 50,000,000 39,636,533 9,909,133 49,545,666 5.64%, 9/3/97(3) 9,000,000 -- 9,000,000 8,909,760 -- 8,909,760 5.65%, 12/15/97(3) 13,000,000 -- 13,000,000 12,659,274 -- 12,659,274 5.68%, 7/25/97(3) 18,000,000 13,000,000 31,000,000 17,931,840 12,950,773 30,882,613 5.69%, 11/26/97(3) 20,000,000 5,000,000 25,000,000 19,532,156 4,883,039 24,415,195 5.70%, 8/19/97 (3) 20,000,000 10,000,000 30,000,000 19,844,833 9,922,417 29,767,250 - --------------------------------------------------------------------------------------------------------------------------------- SMM Trust 1996-B, 5.738%, 8/4/97(1)(2) 20,000,000 10,000,000 30,000,000 20,000,000 10,000,000 30,000,000 - --------------------------------------------------------------------------------------------------------------------------------- SMM Trust 1997-I, 5.687%, 5/29/98(1)(2) 30,000,000 10,000,000 40,000,000 30,000,000 10,000,000 40,000,000 - --------------------------------------------------------------------------------------------------------------------------------- TIERS Series DCMT 1996-A, 5.717%, 10/15/97(1)(2) 25,000,000 5,000,000 30,000,000 25,000,000 5,000,000 30,000,000 ------------------------------------------- 1,374,795,929 530,093,502 1,904,889,431 - --------------------------------------------------------------------------------------------------------------------------------- SPECIALTY RETAILING - 0.2% - --------------------------------------------------------------------------------------------------------------------------------- St. Michael Finance Ltd., 5.61%, 9/11/97 -- 22,000,000 22,000,000 -- 21,753,160 21,753,160 ------------------------------------------- Total Short-Term Notes 7,376,772,323 2,818,155,550 10,194,927,873 =================================================================================================================================== U.S. GOVERNMENT AGENCIES - 1.0% - --------------------------------------------------------------------------------------------------------------------------------- Federal Home Loan Bank, 5.67%, 8/1/97(1) 60,000,000 34,000,000 94,000,000 59,995,504 33,997,453 93,992,957 - --------------------------------------------------------------------------------------------------------------------------------- Student Loan Marketing Assn., 5.82%, 1/23/98 20,000,000 10,000,000 30,000,000 19,998,307 9,999,153 29,997,460 ------------------------------------------- Total U.S. Government Obligations 79,993,811 43,996,606 123,990,417 =================================================================================================================================== FOREIGN GOVERNMENT OBLIGATIONS - 1.6% - --------------------------------------------------------------------------------------------------------------------------------- Bayerische Landesbank Girozentrale, 5.80%, 7/29/97(1) 30,000,000 15,000,000 45,000,000 30,000,000 15,000,000 45,000,000 - --------------------------------------------------------------------------------------------------------------------------------- Swedish Export Credit Corp., 5.36%, 7/9/97 45,000,000 15,000,000 60,000,000 44,946,400 14,982,133 59,928,533 - --------------------------------------------------------------------------------------------------------------------------------- Westdeutsche Landesbank Girozentrale, 5.60%, 9/11/97 50,000,000 -- 50,000,000 49,440,000 -- 49,440,000 - --------------------------------------------------------------------------------------------------------------------------------- Westdeutsche Landesbank Girozentrale, 5.61%, 8/29/97 25,000,000 -- 25,000,000 24,770,146 -- 24,770,146 - --------------------------------------------------------------------------------------------------------------------------------- Westdeutsche Landesbank Girozentrale, guaranteeing commercial paper of: Unibanco-Uniao de Brancos Brasileiros S.A.-Grand Cayman-Series A, 5.61%, 9/8/97 25,000,000 -- 25,000,000 24,731,187 -- 24,731,187 ------------------------------------------- Total Foreign Government Obligations 173,887,733 29,982,133 203,869,866 =================================================================================================================================== MUNICIPAL BONDS AND NOTES - 0.0% - --------------------------------------------------------------------------------------------------------------------------------- Virginia Housing Development Authority Series 1997 A-STEM 11, 5.85%, 12/30/97 -- 5,000,000 5,000,000 -- 4,998,647 4,998,647 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE 96.9% 97.6% 97.1% 8,779,329,984 3,426,662,366 12,205,992,350 - --------------------------------------------------------------------------------------------------------------------------------- OTHER ASSETS NET OF LIABILITIES 3.1 2.4 2.9 283,636,897 84,564,549 368,201,446 ---------------------------------------------------------------------------------------- NET ASSETS 100.0% 100.0% 100.0% $9,062,966,881 $3,511,226,915 $12,574,193,796 ======================================================================================
Short-term notes, bankers' acceptances, direct bank obligations and letters of credit are generally traded on a discount basis; the interest rate is the discount rate received by the Trust/Fund at the time of purchase. Other securities normally bear interest at the rates shown. 1. Floating or variable rate obligation. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on June 30, 1997. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice. Maturity date shown represents effective maturity based on variable rate and, if applicable, demand feature. 2. Restricted securities which are considered illiquid, by virtue of the absence of a readily available market or because of legal or contractual restrictions on resale, amount to $624,360,019, or 4.97% of the combined net assets. The Trust/ Fund may not invest more than 10% of its net assets (determined at the time of purchase) in illiquid securities. 3. Restricted securities, including those issued in exempt transactions without registration under the Securities Act of 1933 (the Act), amounting to $2,084,098,276, or 16.57% of the combined net assets, have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees/Directors. CENTENNIAL MONEY MARKET TRUST FORM N-14 PART C OTHER INFORMATION Item 15. Indemnification - -------- --------------- Reference is made to Section 12 of Article SEVENTH of Registrant's Restated Declaration of Trust dated February 26, 1986. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to trustees, officers and controlling persons of Registrant pursuant to the foregoing provisions or otherwise, Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment of expenses incurred or paid by a director, officer or controlling person of Registrant in the successful defense of any action, suit or proceeding) is asserted by such Trustee, officer or controlling person, Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue. Item 16. Exhibits - -------- -------- (1) Restated Declaration of Trust dated February 26, 1986: Filed with Registrant's Post-Effective Amendment No. 14, 10/28/88, and refiled with Registrant's Post-Effective Amendment No. 21, 10/28/94, pursuant to Item 102 of Regulation S-T, and incorporated herein by reference. (2) By-Laws, as amended through June 26, 1990: Filed with Registrant's Post-Effective Amendment No. 18, 10/31/91, and refiled with Registrant's Post-Effective Amendment No. 21, 10/28/94, C-1 pursuant to Item 102 of Regulation S-T, and incorporated herein by reference. (3) Not applicable (4) Agreement and Plan of Reorganization between Registrant and Daily Cash Accumulation Fund, Inc. dated as of June 24, 1997: See Exhibit A to Part A of this Registration Statement (5) Specimen Share Certificate of Registrant: Filed herewith (6) Investment Advisory Agreement dated October 22,1990: Filed with Registrant's Post-Effective Amendment No. 17, 10/31/90, and refiled with Registrant's Post-Effective Amendment No. 21, 10/28/94, pursuant to Item 102 of Regulation S-T, and incorporated herein by reference. (7) (i) General Distributor's Agreement dated October 13, 1992 between Registrant and Centennial Asset Management Corporation: Filed with Registrant's Post-Effective Amendment No. 20, 10/29/93, and incorporated herein by reference. (ii) Form of Centennial Asset Management Corporation Dealer Agreement: Filed with Post Effective Amendment No. 23 to the Registration Statement of Centennial Government Trust, (Reg. No. 2-75812),11/1/94, and incorporated herein by reference. (iii)Sub-Distributor's Agreement dated May 28, 1993 between Centennial Asset Management Corporation and Oppenheimer Funds Distributor, Inc.: Filed with Registrant's Post-Effective Amendment No. 20,10/29/93, and incorporated herein by reference. (8) Not applicable (9) Custodian Agreement dated October 28, 1981: Filed with Registrant's Post-Effective Amendment No. 4,1/5/83, and refiled with Registrant's Post-Effective Amendment No. 21, 10/28/94, pursuant to Item 102 of Regulation S-T, and incorporated herein by reference. (10) Service Plan and Agreement under Rule 12b-1, dated as of August 24, 1993, between Registrant and Centennial Asset Management Corporation: Filed with Registrant's Post-Effective Amendment No. 20,10/29/93, and incorporated herein by reference. (11) Opinion and Consent of Counsel dated September 22,1981: Filed with Registrant's Pre-Effective Amendment No. 3, 9/29/81, and refiled with Registrant's Post-Effective Amendment No. 21, 10/28/94, pursuant to Item 102 of Regulation S-T, and incorporated herein by reference. (12)(i) Form of Tax Opinion addressed to Registrant relating to the Reorganization: Filed herewith (ii) Form of Tax Opinion addressed to Daily Cash Accumulation Fund, Inc. relating to the Reorganization: Filed herewith (13) Not applicable (14) Consent of Auditors of Registrant and Daily Cash Accumulation Fund, Inc. : Filed herewith (15) Not applicable (16) Powers of Attorney: Filed with Registrant's Post- Effective Amendment No. 20, 10/29/93, and incorporated herein by reference. Powers of Attorney from S. Freedman and B. Macaskill filed with Registrant's Post Effective Amendment No. 23, 10/8/96, and incorporated herein by reference. (17) (i) Declaration of Registrant under Rule 24f-2: Filed herewith (ii) Financial Data Schedule of shares of Registrant: Filed herewith (iii) Opinion of Management as to fairness of statement of results for Daily Cash Accumulation Fund, Inc. for period ended June 30, 1997: Filed herewith Item 17. Undertakings - -------- ------------ (1) Not applicable (2) Not applicable C-2 SIGNATURES As required by the Securities Act of 1933, this Registration Statement has been signed on behalf of the Registrant in the City of New York and State of New York on the 15th day of August, 1997. CENTENNIAL MONEY MARKET TRUST By: /s/ James C. Swain* ------------------------- James C. Swain, Chairman As required by the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities on the dates indicated:
Signatures Title Date - ---------- ----- ---- /s/ James C. Swain* Chairman, Trustee and August 15, 1997 - ------------------ Principal Executive Officer James C. Swain /s/ George C. Bowen* Vice President, Treasurer, August 15, 1997 - ------------------- Assistant Secretary and George C. Bowen Principal Financial and Accounting Officer /s/ Robert G. Avis* Trustee August 15, 1997 - ------------------ Robert G. Avis /s/ William A. Baker* Trustee August 15, 1997 - -------------------- William A. Baker /s/ Charles Conrad, Jr.* Trustee August 15, 1997 - ---------------------- Charles Conrad, Jr. /s/ Jon S. Fossel* Trustee August 15, 1997 - ----------------- Jon S. Fossel /s/ Sam Freedman* Trustee August 15, 1997 - ----------------- Sam Freedman /s/ Raymond J. Kalinowski* Trustee August 15, 1997 - ------------------------- Raymond J. Kalinowski /s/ C. Howard Kast* Trustee August 15, 1997 - ----------------------- C. Howard Kast /s/ Robert M. Kirchner* Trustee August 15, 1997 - ----------------------- Robert M. Kirchner /s/Bridget A. Macaskill* President, Trustee August 15, 1997 - ------------------------ Bridget A. Macaskill /s/ Ned M. Steel* Trustee August 15, 1997 - ---------------- Ned M. Steel *By:/s/ Robert G. Zack - -------------------------------- Robert G. Zack, Attorney-in-Fact
CENTENNIAL MONEY MARKET TRUST FORM N-14 INDEX TO EXHIBITS Exhibit Number Document - ------- --------- 16(5) Specimen share certificate 16(12)(i) Form of Tax Opinion addressed to Registrant 16(12)(ii) Form of Tax Opinion addressed to Daily Cash Accumulation Fund, Inc. 16(14) Consent of Auditors of Registrant and Daily Cash Accumulation Fund, Inc. 17(i) Declaration under Rule 24f-2 17(ii) Financial Data Schedule of Registrant's Shares 17(iii) Financial Data Schedule of Daily Cash Accumulation Fund, Inc. 17(iv) Opinion of Management as to fairness of statement of results for Daily Cash Accumulation Fund, Inc. for period ended June 30, 1997 EX-99 2 SPECIMEN SHARE CERTIFICATE Exhibit16(5) CENTENNIAL MONEY MARKET TRUST Share Certificate (8-1/2" x 11") I. FACE OF CERTIFICATE (All text and other matter lies within 8-5/16" x 10-5/8" decorative border, 5/16" wide) (upper left corner, box with heading: NUMBER [of shares] (upper right corner) share certificate no. (upper right box with heading: CLASS A SHARES below cert. no.) (centered below boxes) CENTENNIAL MONEY MARKET TRUST A MASSACHUSETTS BUSINESS TRUST (at left) THIS IS TO CERTIFY THAT (at right) SEE REVERSE FOR CERTAIN DEFINITIONS (box with number) CUSIP 151355104 (at left) is the owner of (centered) FULLY PAID CLASS A SHARES OF BENEFICIAL INTEREST OF CENTENNIAL MONEY MARKET TRUST (hereinafter called the "Fund"), transferable only on the books of the Fund by the holder hereof in person or by duly authorized attorney, upon surrender of this certificate properly endorsed. This certificate and the shares represented hereby are issued and shall be held subject to all of the provisions of the Declaration of Trust of the Fund to all of which the holder by acceptance hereof assents. This certificate is not valid until countersigned by the Transfer Agent. WITNESS the facsimile seal of the Fund and the signatures of its duly authorized officers. (signature Dated: (signature at left of seal) at right of seal) /s/ George C. Bowen /s/ Bridget A. Macaskill ---------------------- ------------------------ TREASURER PRESIDENT (centered at bottom) 1-1/2" diameter facsimile seal with legend CENTENNIAL MONEY MARKET TRUST SEAL 1979 COMMONWEALTH OF MASSACHUSETTS (at lower right, printed vertically) Countersigned SHAREHOLDER SERVICES, INC. (A DIVISION OF OPPENHEIMERFUNDS, INC.) Denver (CO) Transfer Agent By ____________________________ Authorized Signature II. BACK OF CERTIFICATE (text reads from top to bottom of 11" dimension) The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations. TEN COM - as tenants in common TEN ENT - as tenants by the entirety JT TEN WROS NOT TC - as joint tenants with rights of survivorship and not as tenants in common UNIF GIFT/TRANSFER MIN ACT - ___________ Custodian ___________ (Cust) (Minor) UNDER UGMA/UTMA ___________________ (State) Additional abbreviations may also be used though not in the above list. For Value Received ................ hereby sell(s), assign(s), and transfer(s) unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE AND PROVIDE CERTIFICATION BY TRANSFEREE (box for identifying number) - ---------------------------------------------------------------- (Please print or type name and address of assignee) - ----------------------------------------------------- __________________________________________ Shares of beneficial interest represented by the within Certificate, and do hereby irrevocably constitute and appoint ___________________________ Attorney to transfer the said shares on the books of the within named Fund with full power of substitution in the premises. Dated: ______________________ Signed: __________________________ -------------------------- (Both must sign if joint owners) Signature(s) ___________________ guaranteed Name of Guarantor by: ______________________ Signature of Officer/Title (text printed NOTICE: The signature(s) to this assignment must vertically to correspond with the name(s) as written upon the right of above face of the certificate in every particular paragraph) without alteration or enlargement or any change whatever. (text printed in Signatures must be guaranteed by a financial box to left of institution of the type described in the current signature(s)) prospectus of the Fund. PLEASE NOTE: This document contains a watermark OppenheimerFunds when viewed at an angle. It is invalid without "four hands" this watermark: logotype - ------------------------------------------------------------------ THIS SPACE MUST NOT BE COVERED IN ANY WAY EX-8 3 TAX OPINION (REGISTRANT) Deloitte & Exhibit 16(12)(i) Touche LLP Suite 3600 Telephone: (303) 292-5400 555 Seventeenth Street Facsimile: (303) 312-4000 Denver, Colorado 80202-3942 November , 1997 Centennial Money Market Trust 6803 So. Tucson Way Englewood, CO 80112 Dear Sirs: We have reviewed the Agreement and Plan of Reorganization between Daily Cash Accumulation Fund (DCAF) and Centennial Money Market Trust (CMMT) which is attached as Exhibit A of CMMT's Registration Statement under the Securities Act of 1933 on Form N-14 filed with the Securities and Exchange Commission on (the Agreement), concerning the acquisition by CMMT of substantially all of the assets of DCAF solely for voting shares of beneficial interest in CMMT, followed by the distribution of such shares in exchange for all of the outstanding shares of DCAF. Section 368(a)(1)(C), IRC provides that, when determining whether the exchange is solely for stock, the assumption by CMMT of a liability of DCAF shall be disregarded. The management of DCAF has represented to us that there is no plan or intention by any shareholder of DCAF who owns 5% or more of the outstanding shares of DCAF, and to the best of their knowledge, there is no plan or intention on the part of the remaining shareholders of DCAF to redeem, sell, exchange, or otherwise dispose of a number of CMMT shares received in the transaction that would reduce the shareholders' ownership of CMMT shares to a number of shares having a value, as of the Exchange Date, of less than 50 percent of the value of all of the formerly outstanding shares of DCAF as of the same date, Management of each fund has further represented to us that, as of the date of the exchange, both CMMT and DCAF will qualify as regulated investment companies or will meet the diversification test of Section 368(a)(2)(F)(ii), IRC. In our opinion, the federal tax consequences of the transaction, if carried out in the manner outlined in the Agreement and in accordance with the above representations, will be as follows: 1. The transactions contemplated by the Agreement will qualify as a tax-free "reorganization" within the meaning of Section 368(a)(1) of the Internal Revenue Code of 1986, as amended, and under the regulations promulgated thereunder. 2. DCAF and CMMT will each qualify as a "party to a reorganization" within the meaning of Section 368(b)(2). Centennial Money Market Trust November , 1997 Page 2 3. No gain or loss will be recognized by the shareholders of DCAF upon the distribution of shares of beneficial interest in CMMT to the shareholders of DCAF pursuant to Section 354. 4. Under Section 361(a) no gain or loss will be recognized by DCAF by reason of the transfer of its assets solely in exchange for shares of CMMT. 5. Under Section 1032 no gain or loss will be recognized by CMMT by reason of the transfer of DCAF's assets solely in exchange for shares of CMMT. 6. The stockholders of DCAF will have the same tax basis and holding period for the shares of beneficial interest in CMMT that they receive as they had for the stock of DCAF that they previously held, pursuant to Sections 358(a) and 1223(l), respectively. 7. The securities transferred by DCAF to CMMT will have the same tax basis and holding period in the hands of Cmmt as they had for DCAF, pursuant to Sections 362(b) and 1223(l), respectively. Very truly yours, EX-8 4 TAX OPINION (DAILY CASH ACCUMULATION FUND) Deloitte& Exhibit 16(12)(ii) Touche LLP Suite 3600 Telephone: (303) 292-5400 555 Seventeenth Street Facsimile: (303) 312-4000 Denver, Colorado 80202-3942 November , 1997 Daily Cash Accumulation Fund 6803 So. Tucson Way Englewood, CO 80112 Dear Sirs: We have reviewed the Agreement and Plan of Reorganization between Daily Cash Accumulation Fund (DCAF) and Centennial Money Market Trust (CMMT) which is attached as Exhibit A of CMMT's Registration Statement under the Securities Act of 1933 on Form N-14 filed with the Securities and Exchange Commission on (the Agreement), concerning the acquisition by CMMT of substantially all of the assets of DCAF solely for voting shares of beneficial interest in CMMT, followed by the distribution of such shares in exchange for all of the outstanding shares of DCAF. Section 368(a)(1)(C), IRC provides that, when determining whether the exchange is solely for stock, the assumption by CMMT of a liability of DCAF shall be disregarded. The management of DCAF has represented to us that there is no plan or intention by any shareholder of DCAF who owns 5% or more of the outstanding shares of DCAF, and to the best of their knowledge, there is no plan or intention on the part of the remaining shareholders of DCAF to redeem, sell, exchange, or otherwise dispose of a number of CMMT shares received in the transaction that would reduce the shareholders' ownership of CMMT shares to a number of shares having a value, as of the Exchange Date, of less than 50 percent of the value of all of the formerly outstanding shares of DCAF as of the same date. Management of each fund has further represented to us that, as of the date of the exchange, both CMMT and DCAF will qualify as regulated investment companies or will meet the diversification test of Section 368(a)(2)(F)(ii), IRC. In our opinion, the federal tax consequences of the transaction, if carried out in the manner outlined in the Agreement and in accordance with the above representations, will be as follows: 1. The transactions contemplated by the Agreement will qualify as a tax-free "reorganization" within the meaning of Section 368(a)(1) of the Internal Revenue Code of 1986, as amended, and under the regulations promulgated thereunder. 2. DCAF and CMMT will each qualify as a "party to a reorganization" within the meaning of Section 368(b)(2). Daily Cash Accumulation Fund November , 1997 Page 2 3. No gain or loss will be recognized by the shareholders of DCAF upon the distribution of shares of beneficial interest in CMMT to the shareholders of DCAF pursuant to Section 354. 4. Under Section 361(a) no gain or loss will be recognized by DCAF by reason of the transfer of its assets solely in exchange for shares of CMMT. 5. Under Section 1032 no gain or loss will be recognized by CMMT by reason of the transfer of DCAF's assets solely in exchange for shares of CMMT. 6. The stockholders of DCAF will have the same tax basis and holding period for the shares of beneficial interest in CMMT that they receive as they had for the stock of DCAF that they previously held, pursuant to Sections 358(a) and 1223(l), respectively. 7. The securities transferred by DCAF to CMMT will have the same tax basis and holding period in the hands of CMMT as they had for DCAF, pursuant to Sections 362(b) and 1223(l), respectively. Very truly yours, EX-23 5 CONSENT OF INDPENDENT AUDITORS' Exhibit 16(14) INDEPENDENT AUDITORS' CONSENT Centennial Money Market Trust We consent to the incorporation by reference in this Registration Statement No. 811-2945 on Form N-14 of our report dated January 22, 1997, appearing in the Annual Report of Daily Cash Accumulation Fund, Inc. for the year ended December 31, 1996 and our report dated July 22, 1997, appearing in the Annual Report of Centennial Money Market Fund for the year ended June 30, 1997 and to the references to us under the headings "Tax Consequences of the Reorganization" and "Tax Aspects of the Reorganization" appearing in the Prospectus, which is a part of this Registration Statement. /s/ Deloitte & Touche LLP DELOITTE & TOUCHE LLP Denver, Colorado August 13, 1997 EX-99 6 DECLARATION UNDER RULE 24F-2 EXHIBIT 17(i) Registration No. 2-65245 File No. 811-2945 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-1A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / X / PRE-EFFECTIVE AMENDMENT NO. ___ / / POST-EFFECTIVE AMENDMENT NO. 23 / X / and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 / X / AMENDMENT NO. 25 / X / CENTENNIAL MONEY MARKET TRUST ----------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) 3410 South Galena Street Denver, Colorado, 80231 ----------------------------------------------------------------------- (Address of Principal Executive Offices) (303) 671-3200 ----------------------------------------------------------------------- (Registrant's Telephone Number) ANDREW J. DONOHUE, ESQ. OppenheimerFunds, Inc. Two World Trade Center, New York, New York 10048-0203 ----------------------------------------------------------------------- (Name and Address of Agent for Service) It is proposed that this filing will become effective (check appropriate box): / / Immediately upon filing pursuant to paragraph (b) / X / On October 28, 1996 pursuant to paragraph (b) / / 60 days after filing pursuant to paragraph (a)(i) / / On ____________, pursuant to paragraph (a)(i) / / 75 days after filing pursuant to paragraph (a)(ii) / / On _____________, pursuant to paragraph (a)(ii) of Rule 485 - ----------------------------------------------------------------------- The Registrant has registered an indefinite number of its shares under the Securities Act of 1933 pursuant to Rule 24f-2 promulgated under the Investment Company Act of 1940. A Rule 24f-2 Notice for the Registrant's fiscal year ended June 30, 1996 was filed on August 23, 1996. EX-27 7 FINANCIAL DATA SCHEDUL (REGISTRANT)
6 312538 Centennial Money Market Trust 12-MOS JUN-30-1997 JUL-01-1996 JUN-30-1997 8,779,329,984 8,779,329,984 397,549,180 80,687 794,723 9,177,754,574 0 0 114,787,693 114,787,693 0 9,062,904,841 9,062,904,841 6,752,559,664 0 0 62,040 0 0 9,062,966,881 0 443,824,705 0 53,656,573 390,168,132 12,890 0 390,181,022 0 390,443,351 0 0 27,792,751,077 25,860,498,168 378,092,268 2,310,082,848 0 324,369 0 0 32,755,568 0 58,546,696 8,033,000,000 1.00 0.05 0.00 0.05 0.00 0.00 1.00 0.67 0 0.00
EX-27 8 FINANCIAL DATA SCHEDULE (DAILY CASH ACCUM.) WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
6 45129 Daily Cash Accumulation Fund, Inc. 6-MOS DEC-31-1997 JAN-01-1997 JUN-30-1997 3,426,662,366 3,426,662,366 119,797,027 362,050 422,403 3,547,243,846 0 0 36,016,931 36,016,931 0 3,511,067,059 3,511,067,059 3,601,352,108 0 0 159,856 0 0 3,511,226,915 0 97,897,308 0 11,818,867 86,078,441 22,893 0 86,101,334 0 86,078,441 0 0 3,494,880,002 3,664,256,368 79,091,318 (90,262,155) 0 136,963 0 0 6,569,757 0 12,775,866 3,546,000,000 1.00 0.02 0.00 0.02 0.00 0.00 1.00 0.67 0 0.00
EX-99 9 MANAGEMENT FAIRNESS OPINION EXHIBIT 17 (iv) DAILY CASH ACCUMULATION FUND, INC. In connection with the registration statement on Form N-14 to be filed by Centennial Money Market Trust with the Securities and Exchange Commission on or about August 15, 1997 (the "Registration Statement"), the undersigned hereby confirm, to the best of their knowledge and belief, that the June 30, 1997 unaudited financial statements of Daily Cash Accumulation Fund, Inc. included in the Registration Statement (i) reflect all adjustments which are, in the opinion of management, necessary to a fair presentation of the results presented for that period, (ii) are fair presentations of the information they purport to show, and (iii) have been prepared on a basis substantially consistent with the audited financial statements included therein. /s/ George Bowen /s/ Scott Farrar - ---------------------------- ----------------------------- George Bowen Scott Farrar Vice President, Treasurer, Assistant Treasurer Assistant Secretary Dated: August 14, 1997 Dated: August 14, 1997 -----END PRIVACY-ENHANCED MESSAGE-----