LETTER TO SHAREHOLDERS
Dear Shareholder:
Continued expansion of the U.S. economy, and actions by the Federal
Reserve Board to contain any inflationary effects, have resulted in a rise in
interest rates in recent months.
Accordingly, for the six months ended July 31, 1994 the annualized yield
of the Dreyfus Cash Management Class A shares reached 3.57%. After taking
into account the effect of compounding, the annualized effective yield was
3.63%. The corresponding yields for the Class B shares were 3.33% and 3.38%,
respectively.*
In our view, some time may be needed for the market to adjust to the new
level of interest rates. As a result, in managing the portfolio of Dreyfus
Cash Management we have shortened maturities considerably, placing the
portfolio in a more defensive position.
An impressive number of factors have converged to exert upward pressure
on interest rates. First and foremost is the strength exhibited by the
American economy. Many indicators attest to this: rising industrial
production, an increase in the number of jobs, increases in prices to
manufacturers and the appearance of shortages of skilled labor and certain
materials in a few areas.
The Federal Reserve Board reacted to these and other indicators with a
series of five credit-tightening steps that began last February. The latest
occurred in mid-August.
Overseas, the foreign exchange rate for the U.S. dollar has been marked
down, which could be taken by the Fed as another reason to increase interest
rates.
Meanwhile, the economies of Europe and Japan appear to be recovering from
recession. As demand from these areas for U.S. goods expands, this would be
an added factor tending to increase price and wage levels in the U.S.
In view of all these factors, we consider it prudent for the Fund to
maintain a defensive position. We always have the option of lengthening
maturities when we are convinced that yield levels have stabilized.
Needless to say, in view of the volatility of the fixed-income market, we
are placing more stress than ever on checking the quality of issues acquired
for the portfolio.
It is a privilege to serve your cash management needs and we thank you,
once again, for the business you have directed to this Fund.
Sincerely,
(Patricia Larkin Signature Logo)
Patricia Larkin
Portfolio Manager
August 18, 1994
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS CASH MANAGEMENT
STATEMENT OF INVESTMENTS JULY 31, 1994 (UNAUDITED)
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT--4.5% AMOUNT VALUE
---------------- ----------------
<S> <C> <C>
Chase Manhattan Bank NA (London)
5.06%,12/28/94 . ...................................................... $ 10,000,000 $ 10,000,000
NationsBank of North Carolina (London)
5.04%,3/14/95.......................................................... 12,000,000 12,000,000
Old Kent Bank & Trust
3.50-5.06%,8/25/94-1/10/95............................................. 80,000,000 80,005,344
----------------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $102,005,344).................................................... $ 102,005,344
================
COMMERCIAL PAPER--39.8%
AES Shady Point Inc.
4.44%,8/26/94 (a)...................................................... $ 7,100,000 $ 7,078,207
Bankers Trust New York Corp.
3.51%,9/15/94.......................................................... 45,000,000 44,807,625
Credito Italiano (Delaware) Inc.
4.44%,8/25/94.......................................................... 35,000,000 34,896,867
Ford Motor Credit Co.
4.46-4.88%,8/1/94-11/16/94............................................. 100,000,000 99,643,333
General Electric Capital Corp.
3.50-5.11%,9/23/94-3/10/95............................................. 65,000,000 64,295,936
General Electric Capital Services Inc.
5.11%,3/14/95.......................................................... 25,000,000 24,231,250
General Motors Acceptance Corp.
4.75-4.77%,9/26/94-10/20/94............................................ 105,000,000 104,105,207
Goldman Sachs Group L.P.
3.43-4.74%,10/17/94-11/9/94............................................ 65,000,000 64,333,600
ITT Financial Corp.
4.49-4.51%,8/24/94-9/8/94.............................................. 100,000,000 99,620,764
Lehman Brothers Holdings Inc.
4.67-4.79%,10/5/94-10/19/94............................................ 58,000,000 57,471,059
Merrill Lynch & Co. Inc.
4.42%,8/25/94.......................................................... 35,000,000 34,897,333
MPS U.S. Commercial Paper Corp.
4.48%,9/8/94........................................................... 25,000,000 24,883,097
NEC Industries Inc.
4.45%,8/8/94-8/16/94 (a)............................................... 24,640,000 24,601,497
PaineWebber Group Inc.
5.06%,12/5/94.......................................................... 20,000,000 19,653,500
Ryobi Finance Corp.
4.47%,8/30/94 (a)...................................................... 15,000,000 14,946,229
SwedBank Inc.
3.50-3.59%,8/3/94-11/1/94.............................................. 75,000,000 74,548,000
UBS Finance (Delaware) Inc.
4.22%,8/1/94........................................................... 100,000,000 100,000,000
----------------
TOTAL COMMERCIAL PAPER (cost $894,013,504)................................. $ 894,013,504
================
DREYFUS CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
CORPORATE NOTES--10.0% AMOUNT VALUE
---------------- ----------------
All Nippon Airways Co., Ltd.
5.20%,9/25/95 (b)...................................................... $ 6,150,000 $ 6,150,000
Bear Stearns Companies Inc.
4.69%,8/8/94 (b)....................................................... 48,000,000 48,000,000
Lehman Brothers Holdings Inc.
3.84-4.90%,1/12/95-1/13/95 (b)......................................... 50,000,000 50,000,000
Merrill Lynch & Co. Inc.
4.48%,2/23/95 (b)...................................................... 70,000,000 70,000,000
PaineWebber Group Inc.
4.72%,10/31/94 (b)..................................................... 50,000,000 50,000,000
----------------
TOTAL CORPORATE NOTES (cost $224,150,000)................................... $ 224,150,000
================
U.S. GOVERNMENT AGENCIES--18.9%
Federal Home Loan Banks, Consolidated Systemwide,
Floating Rate Notes
3.53-3.58%,1/31/97-2/3/97 (b).......................................... $ 150,000,000 $ 149,976,280
Federal National Mortgage Association, Consolidated
Systemwide, Floating Rate Notes
3.60%, 2/14/97 (b)..................................................... 100,000,000 100,000,000
Federal National Mortgage Association, Discount Notes
3.50-3.60%, 10/18/94-11/22/94.......................................... 175,000,000 173,429,112
----------------
TOTAL U.S. GOVERNMENT AGENCIES (cost $423,405,392)......................... $ 423,405,392
================
U.S. TREASURY BILLS--4.4%
3.64%,2/9/95
(cost $98,128,000)..................................................... $ 100,000,000 $ 98,128,000
================
TIME DEPOSITS--9.0%
Bankers Trust Co. (London)
4.13%,8/1/94........................................................... $ 50,000,000 $ 50,000,000
Chemical Bank (London)
4.25%,8/1/94........................................................... 100,000,000 100,000,000
Republic National Bank of New York (London)
4.11%,8/1/94........................................................... 50,926,000 50,926,000
----------------
TOTAL TIME DEPOSITS (cost $200,926,000).................................... $ 200,926,000
================
REPURCHASE AGREEMENTS--13.4%
Daiwa Securities America Inc.
4.25%,dated 7/29/94,due 8/1/94 in the amount
of $100,035,417 (fully collateralized by
$103,165,000 U.S. Treasury Bills due 1/5/95
value $101,069,604).................................................... $ 100,000,000 $ 100,000,000
DREYFUS CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
REPURCHASE AGREEMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
Nikko Securities Co. International
4.20%,dated 7/29/94,due 8/1/94 in the amount
of $200,070,000 (fully collateralized by
$201,085,000 U.S. Treasury Notes,4.25-4.625%
due 12/31/94 to 1/15/95,value $201,430,059)............................ $ 200,000,000 $ 200,000,000
----------------
TOTAL REPURCHASE AGREEMENTS (cost $300,000,000)............................ $ 300,000,000
================
TOTAL INVESTMENTS (cost $2,242,628,240).......................... 100.0% $2,242,628,240
====== ================
LIABILITIES, LESS CASH AND RECEIVABLES........................... .0% $ (419,047)
====== ================
NET ASSETS....................................................... 100.0% $ 2,242,209,193
====== ================
NOTES TO STATEMENT OF INVESTMENTS:
(a) Backed by irrevocable bank letter of credit.
(b) Variable interest rate-subject to periodic change.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1994 (UNAUDITED)
<CAPTION> <C> <C>
ASSETS:
Investments in securities, at value
(including repurchase agreements of $300,000,000)-Note 1(a,b)......... $2,242,628,240
Interest receivable..................................................... 5,921,510
----------------
2,248,549,750
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 376,086
Due to Custodian........................................................ 5,949,409
Accrued expenses........................................................ 15,062 6,340,557
------------ --------------
NET ASSETS ................................................................ $2,242,209,193
==============
REPRESENTED BY:
Paid-in capital......................................................... $2,242,647,768
Accumulated net realized (loss) on investments.......................... (438,575)
--------------
NET ASSETS at value......................................................... $2,242,209,193
==============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 2,157,955,774
==============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 84,691,994
==========
NET ASSET VALUE per share:
Class A Shares
($2,157,516,667 / 2,157,955,774 shares)............................... $1.00
=====
Class B Shares
($84,692,526 / 84,691,994 shares)..................................... $1.00
=====
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 48,721,423
EXPENSES:
Management fee-Note 2(a).............................................. $2,609,663
Distribution fees (Class B shares)-Note 2(b).......................... 123,666
------------
TOTAL EXPENSES.................................................... 2,733,329
--------------
INVESTMENT INCOME--NET...................................................... 45,988,094
NET REALIZED GAIN ON INVESTMENTS--Note 1(b)................................. 1,843
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 45,989,937
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS 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........................................... $ 124,597,162 $ 45,988,094
Net realized gain on investments................................. 330,758 1,843
------------------ ------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....... 124,927,920 45,989,937
------------------ ------------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares................................................. (124,557,691) (44,322,088)
Class B shares................................................. (39,471) (1,666,006)
------------------ ------------------
TOTAL DIVIDENDS............................................ (124,597,162) (45,988,094)
------------------ ------------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares................................................. 44,940,158,583 10,894,549,251
Class B shares................................................. 95,036,034 426,683,579
Dividends reinvested:
Class A shares................................................. 21,715,882 10,182,735
Class B shares................................................. 78,861 908,950
Cost of shares redeemed:
Class A shares................................................. (47,542,533,683) (11,642,069,167)
Class B shares................................................. (42,843,195) (395,172,234)
------------------ ------------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS............................................. (2,528,387,518) (704,916,886)
------------------ ------------------
TOTAL (DECREASE) IN NET ASSETS....................... (2,528,056,760) (704,915,043)
NET ASSETS:
Beginning of period.............................................. 5,475,180,996 2,947,124,236
------------------ ------------------
End of period.................................................... $ 2,947,124,236 $ 2,242,209,193
================== =================
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS 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 JANUARY 31, JULY 31, 1994 JANUARY 31, JULY 31, 1994
-------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED) 1994(1) (UNAUDITED)
------- ------- ------- ------- ------- ----------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period... $ .9994 $ .9996 $ .9997 $ .9999 $ .9999 $ .9998 $1.0000 $1.0000
------- ------- ------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net.. .0906 .0801 .0581 .0362 .0311 .0177 .0017 .0165
Net realized gain (loss)
on investments........ .0002 .0001 .0002 - (.0001) - - -
------- ------- ------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS........ .0908 .0802 .0583 .0362 .0310 .0177 .0017 .0165
------- ------- ------- ------- ------- ------- ------- -------
DISTRIBUTIONS;
Dividends from investment
income-net............ (.0906) (.0801) (.0581) (.0362) (.0311) (.0177) (.0017) (.0165)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value,
end of period......... $ .9996 $ .9997 $ .9999 $ .9999 $ .9998 $ .9998 $1.0000 $1.0000
======= ======= ======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN..... 9.44% 8.31% 5.96% 3.68% 3.15% 3.59%(2) 2.82%(2) 3.35%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets.... .20% .20% .20% .20% .20% .20%(2) .45%(2) .45%(2)
Ratio of investment income
to average net assets. 9.03% 7.99% 5.78% 3.60% 3.11% 3.53%(2) 2.83%(2) 3.37%(2)
Decrease reflected in above
expense ratios due to
undertakings by the
Manager............... .02% .02% .03% .04% .03% - - -
Net Assets, end of period
(000's Omitted)....... $3,373,940 $5,041,688 $6,508,999 $5,475,181 $2,894,853 $2,157,517 $52,272 $84,693
(1) From January 10, 1994 (commencement of initial offering) to January 31, 1994.
(2) Annualized.
See independent accountant's review report and notes to financial statements.
</TABLE>
DREYFUS 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. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income is recognized on the accrual basis. Cost of investments represents
amortized cost.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Manager, subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Fund's custodians and, pursuant
to the terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Fund will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Fund maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends from investment income-net on each business day. 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, 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, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income taxes.
DREYFUS CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Fund has an unused capital loss carryover of approximately $438,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to January 31, 1994. The
carryover does not include net realized securities losses from November 1,
1993 through January 31, 1994 which are treated for Federal income tax
purposes as arising in fiscal 1995. If not applied, $427,000 of the carryover
expires in fiscal 1996 and $11,000 expires in fiscal 1999.
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.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, brokerage, interest
on borrowings 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 professionals) 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 $123,666 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 CASH MANAGEMENT
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS CASH MANAGEMENT
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus 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 4, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst & Young Signature Logo)
New York, New York
September 2, 1994
DREYFUS 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. 288/670SA947
DREYFUS
CASH
MANAGEMENT
SEMI-ANNUAL REPORT
July 31, 1994
