LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this semi-annual report for Dreyfus
Tax Exempt Cash Management. For the six-month period ended July 31, 1994, the
annualized yield provided by Dreyfus Tax Exempt Cash Management Class A
shares was 2.39%. After taking into account the effect of compounding, the
annualized effective yield was 2.42%. The corresponding yields for Class B
shares were 2.14% and 2.17%, respectively.* Income dividends of approximately
$.01 per share for Class A shares and $.01 per share for Class B shares paid
during the period were exempt from Federal income tax.**
Our last letter highlighted the first of several tightening actions by
the Federal Reserve Board. The moves were designed to choke off inflationary
pressures before they had an opportunity to build significantly. During the
first phase of the Fed's move away from its accommodative stance to a more
neutral position, rate adjustments were focused solely on the Federal Funds
rate. An even stronger and more overt move came on May 17 when the Fed raised
both the discount rate and the Federal Funds rate by 50 basis points to 3.50%
and 4.25%, respectively. At that time the markets responded in a positive
manner, convinced and/or hopeful that this move signaled the last action, for
a time, by the Board. Subsequently, economic numbers which reflected summer
activity were released, and further evidence of continued economic strength
resulted in a unanimous vote by the Fed to duplicate their May move. On
August 16, the Board once again increased both the discount and Fed Funds
rates by 50 basis points. While opinions may vary, most market participants
believe that no further action will be taken prior to the November elections.
During the initial changes in the Federal Reserve's monetary stance,
unease in other markets served to bolster rates in the short-term municipal
market as cash moved into municipal money markets from both equity and bond
funds. In early April, total net assets of tax exempt money market funds
reached an all-time high of over $119 billion. Since then, there have been
changes in supply and demand conditions (i.e., technical factors), which
contributed to a reversal in cash flows. Both the impact of income tax
payments in late April (with investors tapping their money market funds) and
renewed interest in the stock and bond markets led to declines in municipal
money fund assets. Recent data indicate net assets to be approximately $111
billion.
In recent weeks, many issuers returned to the marketplace with their
traditional summer financings. Sizeable issues, such as the $7 billion State
of California notes, helped to increase the overall supply of available
investment alternatives to buyers of municipal notes. In addition, the added
supply placed some upward pressure on rates, thereby affording the
opportunity to commit to attractively yielding issues in the one-year
maturity range. Throughout this environment, your Fund continued to provide a
very competitive return compared to similar taxable alternatives. And while
these yields have remained attractive to the investor seeking tax exempt
income, the hike in Federal tax rates which took place last year has made
these returns even more favorable on an after-tax basis.**
We have included a current Statement of Investments and recent financial
statements for your review. We look forward to serving your investment needs
in the future.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
August 16, 1994
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily
and reinvested monthly.
** Income may be subject to state and local taxes. Certain corporate
investors may be subject to the Federal Alternative Minimum tax or the
corporate environmental tax.
<TABLE>
<CAPTION>
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS JULY 31, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS--100.0% AMOUNT VALUE
---------------- --------------
<S> <C> <C>
ALASKA--3.4%
Alaska Housing Finance Corp., VRDN
3.10%, Series C (Investment Agreement; Swiss Bank Corp.) (a)............ $ 21,000,000 $ 21,000,000
City of Valdez, Marine Terminal Revenue, Refunding (Exxon Pipeline Co.
Project)
2.30%, Series C, 9/1/94 (Corp. Guaranty; Exxon Corp.)................... 25,000,000 25,004,101
CALIFORNIA--9.3%
California Pollution Control Financing Authority, PCR, CP, Refunding
(Pacific Gas and Electric):
3.15%, Series C, 8/11/94 (LOC; Credit Suisse) (b)..................... 7,030,000 7,030,000
3.25%, Series E, 8/12/94 (LOC; Morgan Guaranty Trust Co.) (b)......... 20,200,000 20,200,000
California Public Capital Improvements Financing Authority, Revenue
(Pooled Project) 3.15%, Series C, 9/15/94 (LOC; National Westminster Bank) (b) 5,000,000 5,000,000
California School Cash Reserve Program Authority, Notes 4.50%, Series A, 7/5/95 25,000,000 25,167,148
Los Angeles County, TRAN 4.50%, 6/30/95..................................... 10,000,000 10,057,086
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, Refunding,
VRDN 2.65%, Series A (Insured; MBIA and SBPA; Industrial Bank of Japan) (a) 6,000,000 6,000,000
Los Angeles Unified School District, TRAN 4.50%, 7/10/95.................... 24,175,000 24,372,216
San Bernadino County, Board of Education, TRAN 4.25%, 7/28/95............... 29,650,000 29,731,591
COLORADO--.8%
City and County of Denver, MFHR, Refunding, VRDN (Parliament Apartments Project)
2.35% (LOC; Connecticut General Life Insurance) (a,b)................... 10,800,000 10,800,000
CONNECTICUT--.8%
State of Connecticut, Special Tax Obligation Revenue, VRDN
(Transportation Infrastructure-1) 3.05% (LOC; Industrial Bank of Japan) (a,b) 10,900,000 10,900,000
DELAWARE--2.5%
Delaware Economic Development Authority, Revenue, VRDN (Hospital Billing Collection):
2.90%, Series A (Insured; MBIA) (a)..................................... 9,700,000 9,700,000
2.90%, Series B (Insured; MBIA) (a)..................................... 10,000,000 10,000,000
2.90%, Series C (Insured; MBIA) (a)..................................... 11,700,000 11,700,000
New Castle County, EDR, VRDN (Toys "R" Us Inc.) 3% (LOC; Bankers Trust) (a,b) 2,480,000 2,480,000
DISTRICT OF COLUMBIA--12.4%
District of Columbia, VRDN:
General Fund Recovery:
2.80%, Series B (LOC; Sanwa Bank) (a,b)............................... 29,800,000 29,800,000
2.80%, Series B-2 (LOC; Sumitomo Bank) (a,b).......................... 19,100,000 19,100,000
2.80%, Series B-3 (LOC; Industrial Bank of Japan) (a,b)............... 33,900,000 33,900,000
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ---------------
DISTRICT OF COLUMBIA (CONTINUED)
District of Columbia, VRDN (continued):
Refunding:
2.70%, Series A-1 (LOC; Sumitomo Bank) (a,b).......................... $ 7,500,000 $ 7,500,000
2.70%, Series A-2 (LOC; Sanwa Bank) (a,b)............................. 13,500,000 13,500,000
2.70%, Series A-3 (LOC; Bank of Tokyo) (a,b).......................... 26,900,000 26,900,000
2.70%, Series A-5 (LOC; Mitsubishi Bank) (a,b)........................ 26,700,000 26,700,000
2.70%, Series A-6 (LOC; National Westminster Bank) (a,b).............. 12,800,000 12,800,000
FLORIDA--4.2%
Dade County Housing Finance Authority, MFMR, VRDN (Flamingo Plaza Apartments)
3.05%, Series 18 (LOC; The Bank of New York) (a,b)...................... 9,000,000 9,000,000
Dade County Industrial Development Authority, Exempt Facilities Revenue,
Refunding, VRDN (Florida Power and Light Co.)
2.70% (Guaranteed by; Florida Power and Light Co.) (a).................. 9,200,000 9,200,000
Orange County School District, RAN:
3.75%, Series A, 4/6/95................................................. 6,000,000 6,020,930
3.75%, Series B, 4/6/95................................................. 19,000,000 19,066,279
Pasco County Industrial Development Authority, Revenue, VRDN
(Woodhaven Partners Limited Project) 3.275% (LOC; Kredietbank) (a,b).... 8,800,000 8,800,000
Pinellas County, Health Facilities Revenue, Refunding, VRDN
(Pooled Hospital Loan Program) 2.85% (LOC; Chemical Bank) (a,b)......... 5,000,000 5,000,000
GEORGIA--.7%
Hapeville Development Authority, IDR, VRDN (Hapeville Hotel Limited)
2.80% (LOC; Swiss Bank Corp.) (a,b)..................................... 6,600,000 6,600,000
Savannah Port Authority, IDR, VRDN (Colonial Terminals Inc. Project)
3.15% (LOC; Citizens and Southern National Bank) (a,b).................. 3,040,000 3,040,000
ILLINOIS--6.9%
City of Chicago, GO Tender Notes
3.15%, Series B, 10/31/94 (LOC: Dai-Ichi Kangyo Bank,
Industrial Bank of Japan, Mitsubishi Bank, Sanwa Bank and Sumitomo Bank) (b) 45,000,000 45,000,000
Chicago O'Hare International Airport, Revenue, VRDN (American Airlines):
2.80%, Series C (LOC; Sanwa Bank) (a,b)................................. 6,700,000 6,700,000
2.80%, Series D (LOC; Sanwa Bank) (a,b)................................. 5,500,000 5,500,000
Illinois Health Facilities Authority, Revenue, VRDN:
(Resurrection Health Care Systems) 2.85% (LOC: Dai-Ichi Kangyo Bank,
Dresdner Bank, Industrial Bank of Japan, Northern Trust and Sanwa Bank) (a,b) 31,000,000 31,000,000
(SSM Health Care Project) 3%, Series A (LOC; Industrial Bank of Japan) (a,b) 7,100,000 7,100,000
INDIANA--2.2%
Indiana Bond Bank Advanced Funding Program 3.03%, Series A2, 1/17/95........ 30,000,000 30,037,746
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ---------------
IOWA--.7%
Iowa School Corporations, Warrant Certificates, Revenue Bonds
3.60%, 12/30/94 (Insured; Capital Guaranty)............................. $ 10,000,000 $ 10,041,850
LOUISIANA--.7%
Orleans Levee District, VRDN (Capital Recovery Funding Program)
3.50%, Series A (LOC; Fuji Bank) (a,b).................................. 10,000,000 10,000,000
MAINE--4.6%
Maine Housing Authority, Mortgage Purchase 3.60%, Series B-1, 4/13/95....... 11,105,000 11,105,000
Maine Turnpike Authority, Turnpike Revenue, BAN 3.15%, 10/3/94.............. 19,700,000 19,715,009
Orrington, RRR, VRDN (Penobscott Energy Recovery Co. Project)
3.625%, Series A (LOC: Bank of Nova Scotia, Bankers Trust, Canadian
Imperial Bank
of Commerce, Long-Term Credit Bank of Japan and Toronto Dominion Bank) (a,b) 32,585,000 32,585,000
MASSACHUSETTS--2.2%
Commonwealth of Massachusetts, Notes 3.40%, Series B, 11/22/94.............. 30,000,000 30,076,776
MICHIGAN--1.4%
Michigan Higher Education Facilities Authority, Revenue, VRDN
(Aces-Pooled Financing Project) 2.85% (BPA; Comerica Bank and Insured; MBIA) (a) 300,000 300,000
Michigan Hospital Finance Authority, VRDN (Hospital Equipment Loan Program)
2.75% (LOC; Manufacturers National Bank) (a,b).......................... 13,400,000 13,400,000
Michigan Housing Development Authority, LOR, VRDN
(Laurel Valley) 2.90% (LOC; National Westminster Bank) (a,b)............ 5,900,000 5,900,000
MINNESOTA--1.8%
Minnesota Housing Finance Agency, Single Family Mortgage
2.50%, Series F, 1/12/95 (GIC; Societe Generale)........................ 24,380,000 24,380,000
MISSISSIPPI--.4%
Jackson County, Port Facilities Revenue, Refunding, VRDN
(Chevron USA Inc. Project) 2.60% (Corp. Guaranty; Chevron USA Inc.) (a). 5,000,000 5,000,000
MISSOURI--.7%
Cole County Industrial Development Authority, Industrial Revenue, VRDN
(Mobine Manufacturing Co. Project) 3.40% (LOC; Fuji Bank) (a,b)......... 2,940,000 2,940,000
Missouri Health and Educational Facilities Authority, Health Facilities Revenue, VRDN
(SSM Health Care Project) 3%, Series A (LOC; Industrial Bank of Japan) (a,b) 7,200,000 7,200,000
NEBRASKA--2.2%
Nebraska Higher Education Loan Program Inc., Revenue, VRDN (Student Loan Program)
2.90%, Series C (Insured; MBIA) (a)..................................... 27,340,000 27,340,000
Nebraska Investment Finance Authority, HR, VRDN (Depreciation Assets)
3%, Series A (Insured; FGIC) (a)........................................ 2,920,000 2,920,000
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ---------------
NEW JERSEY--2.3%
New Jersey Turnpike Authority, Turnpike Revenue, Refunding, VRDN
2.60%, Series D (Insured; FGIC and Liquidity Agreement; Societe Generale) (a) $ 32,000,000 $ 32,000,000
NEW MEXICO--2.3%
City of Farmington, PCR (Arizona Public Service Project- Four Corners Project):
2.60%, Series 85A, 2/1/95 (LOC; Union Bank of Switzerland) (b).......... 11,000,000 11,000,000
VRDN 2.85% (LOC; Barclays Bank) (a,b)................................... 20,000,000 20,000,000
NEW YORK--10.4%
Erie County, RAN 3.30%, 8/5/94 (LOC; Mitsubishi Bank) (b)................... 4,250,000 4,250,090
City of New York, VRDN 2.80%, Subseries A-10 (LOC; Sumitomo Bank) (a,b)..... 11,500,000 11,500,000
New York City Housing Development Corp., Mortgage Revenue, VRDN
(Residential East 17th Street) 2.75%, Series A (SBPA; Chemical Bank) (a) 5,500,000 5,500,000
New York City Industrial Development Agency, Civil Facility Revenue, VRDN
(Children's Oncology Society-Ronald McDonand House)
2.70% (LOC; Barclays Bank) (a,b)........................................ 5,300,000 5,300,000
New York City Municipal Water Finance Authority, Water and Sewer Systems
Revenue, BAN 3.75%, 12/15/94............................................ 15,000,000 15,048,343
New York City Transportation Authority, Special Obigation, RAN
4%, Series A, 12/15/94.................................................. 32,900,000 33,020,016
New York City Trust, Cultural Resources Revenue, VRDN
(American Musuem of Natural History)
2.60%, Series B (Insured; MBIA and SBPA; Credit Suisse) (a)............. 6,900,000 6,900,000
New York State Dormitory Authority, Revenues, VRDN (Metropolitan Museum of Art)
2.55%, Series A (Guaranteed by; Metropolitan Musuem of Art) (a)......... 10,900,000 10,900,000
New York State Local Assistance Corp., VRDN 2.80%, Series 93A
(LOC: Credit Suisse, Swiss Bank Corp. and Union Bank of Switzerland) (a,b) 39,500,000 39,500,000
Westchester County, TAN 2.75%, 12/15/94..................................... 10,000,000 10,003,609
OHIO--.9%
Cincinnati and Hamilton County Port Authority, IDR, VRDN (Multi-Color Corp. Project)
3% (LOC; PNC Bank of Ohio) (a,b)........................................ 3,000,000 3,000,000
Cleveland, Public Power Systems Revenue, BAN 4%, 12/29/94................... 10,000,000 10,024,290
OKLAHOMA--1.3%
Tulsa Industrial Authority, Revenue VRDN:
(Holland Hall School Project) 3% (LOC; National Australia Bank) (a,b)... 6,350,000 6,350,000
(University of Tulsa Project) 3.15% (LOC; Fuji Bank) (a,b).............. 11,600,000 11,600,000
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ---------------
OREGON--3.0%
Klamath Falls, Electric Revenue (Salt Caves-Hydroelectric)
3.75%, Series A, 5/2/95 (Escrowed in; U.S. Treasury Bills).............. $ 29,000,000 $ 29,000,000
Port of Portland, Public Grain Elevator Revenue, VRDN (Columbia Grain Inc. Project)
3.15%, Series A (LOC; Fuji Bank) (a,b).................................. 12,100,000 12,100,000
PENNSYLVANIA--1.6%
City of Philadelphia, TRAN 4.75%, 6/15/95
(LOC; Canadian Imperial Bank of Commerce) (b)........................... 8,500,000 8,560,680
Philadelphia Hospitals and Higher Education Facilities Authority,
HR, Refunding, VRDN (Pennsylvania Hospital)
3%, Series B (Insured; FGIC and BPA; Pittsburgh National Bank) (a)...... 7,000,000 7,000,000
Washington County Authority, Lease Revenue, VRDN (Higher Education Pooled
Equipment Lease Project) 3%, Series 1985A (LOC; Sanwa Bank) (a,b)....... 5,800,000 5,800,000
TEXAS--6.4%
Dallas County, Revenue 3.60%, 6/15/95 (SBPA; Sanwa Bank).................... 10,200,000 10,200,000
Greater East Texas Higher Education Authority Inc., Student Loan Revenue,
Refunding,
VRDN 3%, Series A (LOC; Student Loan Marketing Association) (a,b)....... 21,000,000 21,000,000
Harris County Health Facilities Development Corp. , HR, VRDN:
(Memorial Hospital Systems Project) 2.90% (LOC; Societe Generale) (a,b). 11,100,000 11,100,000
(Texas Children's Hospital) 3%, Series B (LOC; Fuji Bank) (a,b)......... 2,600,000 2,600,000
City of Houston, VRDN:
Certificates of Obligation
3%, Series A (Liquidity Facility; Morgan Guaranty Trust Co.) (a)...... 8,400,000 8,400,000
Public Improvement 3%, Series A (Liquidity Facility; Morgan Guaranty Trust Co.) (a) 6,400,000 6,400,000
Port Development Corp., IDR, VRDN (Pasadena Terminal)
3.15% (LOC; ABN-Amro Bank) (a,b)........................................ 9,400,000 9,400,000
Texas Health Facilities Development Corp., HR, VRDN (North Texas Pooled Health-85A)
2.90%, Series 85A (LOC; Citibank) (a,b)................................. 18,700,000 18,700,000
UTAH--.7%
Salt Lake County, PCR, Refunding, VRDN (Service Station Holdings Project)
2.75% (Guaranteed by; British Petroleum) (a)............................ 10,100,000 10,100,000
VERMONT--2.3%
State of Vermont, CP 2.75%, Series C, 10/7/94
(Revolving Credit; Toronto Dominion Bank)............................... 31,400,000 31,400,000
VIRGINIA--4.3%
Virginia Housing Development Authority, Commonwealth Mortgage Revenue:
Refunding (Series F-Subseries F-Stem) 2.90%, 8/10/94.................... 42,000,000 42,000,496
(Series B-Subseries B-Stem) 3%, 12/15/94................................ 16,500,000 16,500,000
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ---------------
WASHINGTON--1.4%
Washington Housing Finance Commission, Non-Profit Housing Revenue, VRDN
(Emerald Heights Project) 2.85% (LOC; Banque Paribas) (a,b)............. $ 9,800,000 $ 9,800,000
Washington Public Power Supply System, Revenue, Refunding, VRDN
(Nuclear Project No.3) 2.85%, Series 3A-3 (LOC; National Westminster Bank) (a,b) 9,800,000 9,800,000
WISCONSIN--1.5%
City of Milwaukee, RAN 3.50%, Series A, 2/23/95............................. 20,000,000 20,054,782
WYOMING--3.7%
Lincoln County, PCR, CP (Exxon Project)
3.20%, 10/12/94 (Corp. Guaranty; Exxon Corp.)........................... 18,500,000 18,500,000
Uinta County, PCR, Refunding, VRDN (Chevron USA Inc. Project)
2.65% (Guaranteed by; Chevron USA Inc.) (a)............................. 31,900,000 31,900,000
----------------
TOTAL INVESTMENTS (cost $1,370,523,038)..................................... $1,370,523,038
===============
</TABLE>
<TABLE>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
BAN Bond Anticipation Notes MBIA Municipal Bond Insurance Association
BPA Bond Purchase Agreement MFHR Multi-Family Housing Revenue
CP Commercial Paper MFMR Multi-Family Mortgage Revenue
EDR Economic Development Revenue PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Corporation RAN Revenue Anticipation Notes
GIC Guaranteed Investment Contract RRR Resources Recovery Revenue
GO General Obligation SBPA Standby Bond Purchase Agreement
HR Hospital Revenue TAN Tax Anticipation Notes
IDR Industrial Development Revenue TRAN Tax and Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
LOR Limited Obligation Revenue
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 94.9%
F2 VMIG2/MIG2, P2 SP2, A2 2.4
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 2.0
Not Rated (f) Not Rated (f) Not Rated (f) .7
--------
100.0%
=======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(b) Secured by letters of credit. At July 31, 1994, 46.9% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks, brokerage firms, corporations and U.S. Government
Agencies.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) P1 and A1 are the highest ratings assigned tax-exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(e) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
(f) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Fund's Board of Trustees to be of
comparable quality to those rated securities in which the Fund may
invest.
See independent accountants' review report and notes to financial statements.
<TABLE>
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)............................................ $1,370,523,038
Cash..................................................................................... 13,982,324
Interest receivable...................................................................... 8,086,553
Prepaid expenses......................................................................... 128,967
----------------
1,392,720,882
LIABILITIES;
Due to The Dreyfus Corporation........................................................... 246,481
----------------
NET ASSETS .................................................................... $1,392,474,401
===============
REPRESENTED BY:
Paid-in capital.......................................................................... $1,392,603,616
Accumulated net realized (loss) on investments........................................... (129,215)
----------------
NET ASSETS at value.......................................................................... $1,392,474,401
===============
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)................................ 1,371,139,109
===============
Class B Shares
(unlimited number of $.001 par value shares authorized)................................ 21,464,507
===============
NET ASSET VALUE per share:
Class A Shares
($1,371,013,091 / 1,371,139,109 shares)................................................ $1.00
======
Class B Shares
($21,461,310 / 21,464,507 shares)...................................................... $1.00
======
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 20,685,345
EXPENSES:
Management fee's Note 2(a).............................................. $1,609,583
Distribution fees (Class B Shares)-Note 2(b).......................... 20,828
-----------
TOTAL EXPENSES.................................................... 1,630,411
----------------
INVESTMENT INCOME--NET...................................................... 19,054,934
NET REALIZED (LOSS) ON INVESTMENTS.......................................... (129,215)
----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 18,925,719
===============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS TAX EXEMPT CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JANUARY 31, JULY 31, 1994
1994 (UNAUDITED)
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................ $ 41,428,601 $ 19,054,934
Net realized gain (loss) on investments........................... 118,355 (129,215)
Net unrealized (depreciation) on investments for the period....... (24,221) -
---------------- ----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ 41,522,735 18,925,719
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A Shares.................................................. (41,428,601) (18,869,838)
Class B Shares.................................................. - (185,096)
Net realized gain on investments:
Class A Shares.................................................. - (110,083)
Class B Shares.................................................. - (1,393)
---------------- ----------------
TOTAL DIVIDENDS............................................. (41,428,601) (19,166,410)
---------------- ----------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A Shares.................................................. 14,041,812,260 6,279,595,365
Class B Shares.................................................. 501 39,229,667
Dividends reinvested:
Class A Shares.................................................. 6,662,571 3,013,264
Class B Shares.................................................. - 84,566
Cost of shares redeemed:
Class A Shares.................................................. (14,147,568,464) (6,651,144,902)
Class B Shares.................................................. - (17,850,227)
---------------- ----------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS (99,093,132) (347,072,267)
---------------- ----------------
TOTAL (DECREASE) IN NET ASSETS............................ (98,998,998) (347,312,958)
NET ASSETS:
Beginning of period............................................... 1,838,786,357 1,739,787,359
---------------- ----------------
End of period..................................................... $1,739,787,359 $1,392,474,401
================ ================
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS TAX EXEMPT CASH MANAGEMENT
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
CLASS A SHARES CLASS B SHARES
-------------------------------------------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED
YEAR ENDED NOVEMBER 30, JULY 31, 1994 JANUARY 31, JULY 31, 1994
-------------------------------------------------
PER SHARE DATA: 1989 1990 1991 1992 1993 (UNAUDITED) 1994(1) (UNAUDITED)
-------- -------- -------- -------- --------- -------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period................ $ .9988 $ .9987 $ .9994 $ .9998 $1.0000 $1.0001 $1.0000 $1.0000
-------- -------- -------- -------- --------- -------- ------- --------
INVESTMENT OPERATIONS:
Investment income--net.. .0617 .0570 .0417 .0279 .0226 .0119 .0011 .0106
Net realized and unrealized gain
(loss) on investments. (.0001) .0007 .0004 .0002 .0001 (.0001) - -
-------- -------- -------- -------- --------- -------- ------- --------
TOTAL FROM INVESTMENT
OPERATIONS........ .0616 .0577 .0421 .0281 .0227 .0118 .0011 .0106
-------- -------- -------- -------- --------- -------- ------- --------
DISTRIBUTIONS:
Dividends from investment
income-net............ (.0617) (.0570) (.0417) (.0279) (.0226) (.0119 (.0011) (.0106)
Dividends from net realized gain
on investments........ - - - - - (.0001) - (.0001)
-------- -------- -------- -------- --------- -------- ------- --------
TOTAL DISTRIBUTIONS... (.0617) (.0570) (.0417) (.0279) (.0226) (.0120) (.0011) (.0107)
-------- -------- -------- -------- --------- -------- ------- --------
Net asset value, end of period $ .9987 $ .9994 $ .9998 $1.0000 $1.0001 $ .9999 $1.0000 $ .9999
======= ======= ======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN..... 6.35% 5.85% 4.25% 2.83% 2.29% 2.42%(2)1.83%(2) 2.18%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets............ .20% .20% .20% .20% .20% .20%(2) .45%(2) .45%(2)
Ratio of net investment income
to average net assets. 6.15% 5.70% 4.16% 2.77% 2.26% 2.34%(2) 1.87%(2) 2.22%(2)
Decrease reflected in above
expense ratios due to
undertaking by the Manager .04% .03% .05% .04% .04% - - -
Net Assets, end of period
(000's omitted)....... $1,147,753 $1,905,522 $1,668,671 $1,838,786 $1,739,787 $1,371,013 $1 $21,461
(1) From January 10, 1994 (commencement of initial offering) to January 31, 1994.
(2) Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS TAX EXEMPT CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Dreyfus Service
Corporation acted as the distributor of the Fund's shares until August 24,
1994, which are sold to the public without a sales load. Dreyfus Service
Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services Inc. ("Premier") was
engaged as the Fund's distributor. Premier, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of Institutional
Administration Services, Inc., a provider of mutual fund administration
services, the parent company of which is Boston Institutional Group, Inc.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so.
The Fund offers both Class A and Class B shares. Class B shares are
subject to a Service Plan adopted pursuant to Rule 12b-1 under the Act. Other
differences between the two Classes include the services offered to and the
expenses borne by each Class and certain voting rights.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Trustees to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Interest income, adjusted
for amortization of premiums and original issue discounts on investments, is
earned from settlement date and recognized on the accrual basis. Realized
gain and loss from securities transactions are recorded on the identified
cost basis.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income taxes.
At July 31, 1994, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .20 of 1% of the average
daily value of the Fund's net assets and is payable monthly.
DREYFUS TAX EXEMPT CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, interest on
borrowings, brokerage commissions and extraordinary expenses, exceed 1 1/2%
of the average value of the Fund's net assets for any full fiscal year.
Currently, due to an undertaking, the Manager, and not the Fund, is
liable for all expenses of the Fund (excluding certain expenses as described
above) other than management fee, and with respect to the Fund's Class B
shares, Rule 12b-1 Service Plan expenses. The Manager may modify the existing
undertaking provided that the Fund's shareholders are given 90 days prior
notice.
(B) Under the Service Plan ("Class B Service Plan") adopted pursuant to
Rule 12b-1 under the Act, the Fund pays Dreyfus Service Corporation, at an
annual rate of .25 of 1% of the value of the Fund's Class B shares average
daily net assets, for costs and expenses in connection with advertising,
marketing and distributing Class B shares and for providing certain services
to holders of Class B shares. Dreyfus Service Corporation will make payments
to one or more Service Agents (financial institutions, securities dealers, or
other industry professional) based on the value of the Fund's Class B shares
owned by clients of the Service Agent. During the six months ended July 31,
1994, $20,828 was charged to the Fund, pursuant to the Class B Service Plan.
(C) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or Dreyfus Service Corporation.
Each trustee who is not an "affiliated person" receives an annual fee of
$3,000 and an attendance fee of $500 per meeting.
DREYFUS TAX EXEMPT CASH MANAGEMENT
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS TAX EXEMPT CASH MANAGEMENT
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Tax Exempt Cash Management, including the statement of investments,
as of July 31, 1994, and the related statements of operations and changes in
net assets and financial highlights for the six month period ended July 31,
1994. These financial statements and financial highlights are the
responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
January 31, 1994 and financial highlights for each of the five years in the
period ended January 31, 1994 and in our report dated March 8, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst & Young LLP Signature Logo)
New York, New York
September 9, 1994
DREYFUS TAX EXEMPT
CASH MANAGEMENT
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 264/675SA947
DREYFUS
TAX EXEMPT
CASH
MANAGEMENT
SEMI-ANNUAL REPORT
July 31, 1994
