DREYFUS CASH MANAGEMENT
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus Cash
Management. For its annual reporting period ended January 31, 1996, Class A
shares of your Fund produced a yield of 5.86% and Class B shares a yield of
5.62%. Reinvesting dividends and calculating the effect of compounding
resulted in effective yields of 6.02% and 5.76% for Class A shares and Class
B shares respectively.*
THE ECONOMY
On January 31, the last day of the Fund's reporting period, the Federal
Reserve Board lowered the Federal Funds rate from 5.50% to 5.25%, which
prompted banks to lower the Prime Rate from 8.50% to 8.25%. This was the
second move for these key rates in a two-month time span. The Federal Reserve
also reduced the Discount Rate from 5.25% to 5.00%. The reduction in interest
rates was a continuation of an easing in monetary policy that has prevailed
since last July.
Economic activity over the course of the period had fundamentally
declined. The period between the July and December rate cuts, however,
revealed a strengthening in some areas such as raw materials, finished goods,
employment and income which subsequently abated. Later, regional business
activity showed a moderate growth trend, particularly in the Northeast where
performance was adversely affected by weather-related circumstances. In the
retail sector, disappointing sales left businesses with excess inventories
contributing to one of the worst holiday seasons in recent years. Other
sectors, including manufacturing and consumer confidence, also turned down.
The Consumer Price Index remained well under control.
Concern arose over prolonged sluggishness threatening long-term
sustainable growth. Actions were taken by the Federal Reserve to accelerate
the rate of growth without sparking inflation. Should more signs of weakness
emerge to undermine economic expansion, it is likely that short-term interest
rates will continue to decline. However, in early February concerns about
inflation tempered the outlook.
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
The gradual moderation in economic expansion and reduction of
inflationary pressures were fundamental backdrops to a positive market
environment. Solid technical factors, led by a stable dollar, increased the
participation of foreign investors. Overall domestic demand also helped the
market absorb the supply of Treasury securities and contribute to positive
market psychology throughout the period.
Concerns over Washington's ability to formulate a balanced budget
amendment and to resolve debt ceiling limit issues affected the market
periodically throughout this reporting period. However, low long-term
interest rates, if they continue, would have a favorable effect on the value
of short-term money market securities. Portfolio activity for your Fund
centered on extending the average maturity and seeking to enhance yield
through spread evaluations and market timing.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the Fund
and in The Dreyfus Corporation.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Senior Portfolio Manager
February 15, 1996
New York, N.Y.
*Effective yield is based upon dividends declared daily and reinvested
monthly.
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DREYFUS CASH MANAGEMENT
STATEMENT OF INVESTMENTS JANUARY 31, 1996
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-6.6% AMOUNT VALUE
________ ________
<S> <C> <C>
Chase Manhattan Bank
5.25%, 10/17/96......................................................... $ 50,000,000 $ 50,000,000
Morgan Guaranty Trust Co. (London)
5.51%, 6/11/96-6/12/96.................................................. 20,000,000 19,999,703
Old Kent Bank & Trust Co.
5.13%-5.18%, 10/25/96-10/28/96.......................................... 45,000,000 45,000,000
Union Bank
5.20%-5.32%, 7/26/96-8/2/96............................................. 75,000,000 75,000,000
_______
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $189,999,703)..................................................... $ 189,999,703
=======
COMMERCIAL PAPER-48.5%
Abbey National North America
5.33%, 5/8/96........................................................... $ 125,000,000 $ 123,231,771
BHF Finance (DE) Inc.
5.47%-5.66%, 3/6/96-4/8/96.............................................. 86,650,000 85,954,008
Bankers Trust New York Corp.
5.42%-5.81%, 3/15/96-7/8/96............................................. 125,000,000 123,337,181
Chase Manhattan Corp.
5.88%, 5/10/96.......................................................... 75,000,000 73,838,813
Ciesco L.P.
5.66%-5.75%, 2/13/96-3/21/96............................................ 20,300,000 20,204,685
Den Danske Corp. Inc.
5.20%-5.72%, 3/4/96-7/31/96............................................. 85,000,000 83,403,225
Ford Motor Credit Co.
5.52%-5.78%, 2/21/96-5/9/96............................................. 100,000,000 99,107,500
General Electric Capital Corp.
5.69%, 4/9/96........................................................... 40,000,000 39,578,400
General Motors Acceptance Corp.
5.80%-5.82%, 2/2/96-2/26/96............................................. 140,000,000 139,674,971
Goldman Sachs Group L.P.
5.72%, 3/6/96........................................................... 100,000,000 99,468,278
Lehman Brothers Holdings Inc.
5.82%, 2/7/96........................................................... 50,000,000 49,952,250
Merrill Lynch & Co. Inc.
5.14%-5.78%, 3/8/96-10/25/96............................................ 95,000,000 92,453,492
Morgan Stanley Group Inc.
5.40%-5.58%, 3/20/96-4/30/96............................................ 135,000,000 133,515,394
NYNEX Corp.
5.34%-5.41%, 4/26/96-5/17/96............................................ 55,000,000 54,236,000
DREYFUS CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1996
PRINCIPAL
COMMERCIAL PAPER (CONTINUED) AMOUNT VALUE
_________ ________
Nation Bank Corp.
5.61%, 5/28/96.......................................................... $ 40,000,000 $ 39,290,200
SwedBank Inc.
5.60%-5.81%, 2/5/96-4/3/96.............................................. 137,000,000 136,259,003
_______
TOTAL COMMERCIAL PAPER
(cost $1,393,505,171)................................................... $1,393,505,171
=======
CORPORATE NOTES-13.7%
Bear Stearns Companies Inc.
5.64%-5.83%, 7/11/96-1/29/97 (a)........................................ $ 115,000,000 $115,000,000
Comerica Bank
5.65%, 7/26/96 (a)...................................................... 70,000,000 69,999,007
General Electric Capital Corp.
5.77%-5.78%, 3/29/96-4/12/96 (a)........................................ 60,000,000 59,996,583
Lehman Brothers Holdings Inc.
5.75%, 1/6/97 (a)....................................................... 50,000,000 50,000,000
Merrill Lynch & Co. Inc.
5.68%-5.81%, 7/2/96-1/16/97 (a)......................................... 49,000,000 48,999,600
PHH Corp.
5.27%, 2/9/96 (a)....................................................... 50,000,000 50,000,000
_______
TOTAL CORPORATE NOTES
(cost $393,995,190)..................................................... $ 393,995,190
=======
SHORT-TERM BANK NOTES-14.0%
Banc One Milwaukee
5.62%, 2/6/97 (a)....................................................... $ 50,000,000 $ 49,980,685
Comerica Bank
6.48%, 5/2/96........................................................... 45,000,000 44,996,755
First National Bank of Boston
5.61%-5.73%, 6/21/96-11/18/96 (a)....................................... 140,000,000 140,000,000
Morgan Guaranty Trust Co.
5.50%-6.05%, 8/21/96-1/8/97 (a)......................................... 55,000,000 55,000,000
NBD Bank, NA
6.42%, 4/26/96.......................................................... 50,000,000 50,000,000
NationsBank of Texas
5.50%, 7/10/96.......................................................... 60,000,000 60,000,000
_______
TOTAL SHORT-TERM BANK NOTES
(cost $399,977,440)..................................................... $ 399,977,440
=======
DREYFUS CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1996
PRINCIPAL
U.S. GOVERNMENT AGENCIES-12.2% AMOUNT VALUE
________ ________
Federal Home Loan Banks , Floating Rate Notes
6.05%, 2/3/97 (a)....................................................... $ 50,000,000 $ 49,990,481
Federal National Mortgage Association , Floating Rate Notes
5.56%-5.97%, 12/16/96-8/1/97 (a)........................................ 300,000,000 299,844,987
_______
TOTAL U.S. GOVERNMENT AGENCIES
(cost $349,835,468)..................................................... $ 349,835,468
=======
TIME DEPOSITS-.1%
Republic National Bank of New York (London)
5.38%, 2/1/96
(cost $3,343,000)....................................................... $ 3,343,000 $ 3,343,000
=======
REPURCHASE AGREEMENTS-7.1%
Aubrey G. Lanston & Co., Inc.
5.65%, dated 1/31/96, due 2/1/96 in the amount of
$144,238,634 (fully collateralized by
$150,185,000 U.S. Treasury Bills due
8/22/96-9/19/96, value $145,957,916).................................... $ 144,216,000 $ 144,216,000
SBC Capital Markets
5.71%, dated 1/31/96, due 2/1/96 in the amount of
$60,009,517 (fully collateralized by $63,150,000
U.S. Treasury Bills due 9/19/96, value
$61,225,048)............................................................ 60,000,000 60,000,000
_______
TOTAL REPURCHASE AGREEMENTS
(cost $204,216,000)..................................................... $ 204,216,000
=======
TOTAL INVESTMENTS
(cost $2,934,871,972)........................................... 102.2% $2,934,871,972
====== =======
LIABILITIES, LESS CASH AND RECEIVABLES.............................. (2.2%) $ (61,923,103)
====== =======
NET ASSETS.......................................................... 100.0% $2,872,948,869
====== =======
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable interest rate-subject to periodic change.
See notes to financial statements.
DREYFUS CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1996
ASSETS:
Investments in securities, at value-Note 1(a,b)......................... $2,934,871,972
Receivable for investment securities sold............................... 49,937,778
Interest receivable..................................................... 12,233,396
_______
2,997,043,146
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 488,437
Due to Distributor...................................................... 93,668
Payable for investment securities purchased............................. 123,145,060
Accrued expenses and other liabilities.................................. 367,112 124,094,277
_______ _______
NET ASSETS.................................................................. $2,872,948,869
=======
REPRESENTED BY:
Paid-in capital......................................................... $2,873,146,790
Accumulated net realized (loss) on investments.......................... (197,921)
_______
NET ASSETS at value......................................................... $2,872,948,869
=======
Shares of Beneficial Interest outstanding:
Class A shares
(unlimited number of $.001 par value shares authorized)............... 2,442,863,593
=======
Class B shares
(unlimited number of $.001 par value shares authorized)............... 430,283,197
=======
NET ASSET VALUE per share:
Class A shares
($2,442,646,468 / 2,442,863,593 shares)............................... $1.00
=======
Class B shares
($430,302,401 / 430,283,197 shares)................................... $1.00
=======
STATEMENT OF OPERATIONS YEAR ENDED JANUARY 31, 1996
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 156,825,199
EXPENSES:
Management fee-Note 2(a).............................................. $ 5,179,993
Distribution fees (Class B shares)-Note 2(b).......................... 445,940
_______
TOTAL EXPENSES.................................................... 5,625,933
_______
INVESTMENT INCOME-NET....................................................... 151,199,266
NET REALIZED GAIN ON INVESTMENTS-Note 1(b).................................. 428,428
_______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 151,627,694
=======
See notes to financial statements.
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DREYFUS CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JANUARY 31,
________________________________________
1995 1996
________ ________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 93,757,618 $151,199,266
Net realized gain (loss) on investments............................. (185,931) 428,428
________ ________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......... 93,571,687 151,627,694
________ ________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares.................................................... (90,088,510) (141,323,993)
Class B shares.................................................... (3,669,108) (9,875,273)
________ ________
TOTAL DIVIDENDS............................................... (93,757,618) (151,199,266)
________ ________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares.................................................... 17,326,303,484 19,851,202,552
Class B shares.................................................... 670,809,160 1,517,423,779
Dividends reinvested:
Class A shares.................................................... 21,969,146 38,568,632
Class B shares.................................................... 1,713,385 4,217,122
Cost of shares redeemed:
Class A shares.................................................... (18,425,780,190) (19,264,692,986)
Class B shares.................................................... (639,452,949) (1,176,698,999)
________ ________
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS....................................... (1,044,437,964) 970,020,100
________ ________
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... (1,044,623,895) 970,448,528
NET ASSETS:
Beginning of year................................................... 2,947,124,236 1,902,500,341
________ ________
End of year......................................................... $ 1,902,500,341 $ 2,872,948,869
======== ========
See notes to financial statements.
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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 year indicated. This
information has been derived from the Fund's financial statements.
CLASS A SHARES CLASS B SHARES
__________________________________________________________________________________
YEAR ENDED JANUARY 31, YEAR ENDED JANUARY 31,
________________________________________________________ __________________________
PER SHARE DATA: 1992 1993 1994 1995 1996 1994(1) 1995 1996
____ ____ ____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00
____ ____ ____ ____ ____ _____ ____ ____
INVESTMENT OPERATIONS;
Investment income-net........ .058 .036 .031 .042 .059 .002 .040 .056
____ ____ ____ ____ ____ ____ ____ ____
DISTRIBUTIONS;
Dividends from
investment income-net...... (.058) (.036) (.031) (.042) (.059) (.002) (.040) (.056)
____ ____ ____ ____ ____ ____ ____ ____
Net asset value, end of year. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......... 5.96% 3.68% 3.15% 4.28% 6.03% 2.82%(2) 4.03% 5.76%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets......... .20% .20% .20% .20% .20% .45%(2) .45% .45%
Ratio of net investment income to
average net assets......... 5.78% 3.60% 3.11% 4.08% 5.86% 2.83%(2) 3.94% 5.54%
Decrease reflected in above expense
ratios due to undertaking by
the Manager................ .03% .04% .03% - - - - -
Net Assets, end of year
(000's Omitted)............ $6,508,999 $5,475,181 $2,894,853 $1,817,166 $2,442,647 $52,272 $85,334 $430,302
(1) From January 10, 1994 (commencement of initial offering) to January 31, 1994.
(2) Annualized.
See notes to financial statements.
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DREYFUS CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Cash Management (the "Fund") is registered under the Investment
Company Act of 1940 ("Act") as a diversified open-end management investment
company. The Fund's investment objective is to provide investors with as high
a level of current income as is consistent with the preservation of capital
and the maintenance of liquidity. The Dreyfus Corporation ("Manager") serves
as the Fund's investment adviser. The Manager is a direct subsidiary of
Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold without a sales load. 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.
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. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00.
(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 and
excise taxes.
DREYFUS CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $198,000
available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
January 31, 1996. If not applied, $10,000 of the carryover expires in fiscal
1999, and $188,000 expires in fiscal 2003.
At January 31, 1996, 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.
Unless the Manager gives the Fund's investors 90 days notice to the
contrary, the Manager and not the Fund, will be liable for Fund expenses
(exclusive of taxes, brokerage, interest on borrowings and, with the prior
written consent of the necessary state securities commissions, extraordinary
expenses) other than the following expenses, which will be borne by the Fund:
the management fee, and with respect to the Fund's Class B shares, Rule 12b-1
Service Plan expenses.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $2,821 for the period from
December 1, 1995 through January 31, 1996.
(B) Under the Class B Service Plan (the "Plan") adopted pursuant to Rule
12b-1 under the Act, the Fund (a) reimburses the Distributor for distributing
the Fund's Class B shares and (b) pays the Manager and Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, and their affiliates
(collectively "Dreyfus") for advertising and marketing relating to the Fund's
Class B shares and for providing certain services relating to Class B
shareholder accounts, such as answering shareholder inquiries regarding the
Fund and providing reports and other information, and services related to the
maintenance of shareholder accounts ("Servicing"), at an aggregate annual
rate of .25 of 1% of the value of the average daily net assets of Class B.
Both the Distributor and Dreyfus may pay one or more Service Agents a fee in
respect of the Funds' Class B shares owned by the shareholders with whom the
Service Agent has a Servicing relationship or for whom the Service Agent is
the dealer or holder of record. Both the Distributor and Dreyfus determine
the amounts, if any, to be paid to the Service Agents under the Plan and the
basis on which such payments are made. The fees payable under the Plan are
payable without regard to actual expenses incurred. During the year ended
January 31, 1996, $445,940 was charged to the Fund, pursuant to the Plan.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives an annual fee of $3,000 and an attendance fee of $500 per meeting.
DREYFUS CASH MANAGEMENT
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS CASH MANAGEMENT
We have audited the accompanying statement of assets and liabilities of
Dreyfus Cash Management, including the statement of investments, as of
January 31, 1996, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in
the period then ended, and financial highlights for each of the years
indicated therein. 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 as of January 31, 1996 by correspondence with the custodian
and brokers. 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, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Cash Management at January 31, 1996, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the indicated years, in conformity with generally accepted accounting
principles.
[Ernst and Young LLP signature logo]
New York, New York
March 5, 1996
DREYFUS CASH MANAGEMENT
200 PARK AVENUE
NEW YORK, NY 10166
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
DREYFUS TRANSFER, INC.
ONE AMERICAN EXPRESS PLAZA
PROVIDENCE, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 288/670AR961
DREYFUS
CASH
MANAGEMENT
ANNUAL REPORT
JANUARY 31, 1996
