LETTER TO SHAREHOLDERS
Dear Shareholder:
U.S. Treasury yields were in a rising pattern for most of last year, ever
since the Federal Reserve Board began a series of six steps in February, 1994
to head off inflation by raising short-term interest rates.
During the year, the Federal Funds rate was boosted by 250 basis points.
In just the last six months, the increase has amounted to 125 basis points.
The year's returns for Dreyfus 100% U.S. Treasury Money Market Fund
reflect the much lower level of interest rates when the year began, as well
as the continuous rises in interest rates since then.
For the fiscal year ended December 31, 1994, the annualized yield for
Dreyfus 100% U.S. Treasury Money Market Fund was 3.34%, which equals an
annualized effective yield of 3.39% after taking into account the effect of
compounding. It may be of interest to note that in the latest quarter, the
three months ended December 31, the annualized yield was 4.21% and the
annualized effective yield was 4.30%.*
The performance of the U.S. economy last year was most impressive, in
spite of slow retail sales during the Christmas season. During the year, we
saw a robust housing market, booming automobile sales, notable expansion in
new jobs, a drop in the unemployment rate, and expanding industrial
production. All this was accomplished with a very modest level of inflation,
whether you measure inflation by the existing numbers or revise it downward,
as has been suggested by the Chairman of the Federal Reserve, Alan Greenspan.
In January, he told Congress he thinks the currently published inflation
numbers overstate the Consumer Price Index by .05 to 1.5%.
Recently, the fiscal problems of Mexico have unsettled financial markets.
However, the U.S. rescue plan appears to have had a calming effect.
All of this has an impact on money market rates. Soon, the Federal
Reserve will have to decide whether another increase in the Federal Funds
rate is required. The continued expansion of the American economy argues for
further tightening of interest rates. On the other hand, the financial
problems in Mexico and elsewhere in Latin America might persuade the Fed to
take a more cautious approach.
For most of the year, we maintained a fairly short maturity average in
anticipation of the increases in interest rates. That is still our posture.
As always, we will be watching the economic developments closely and will
not hesitate to make portfolio adjustments as required.
Our objective remains to seek as high a level of current income as is
consistent with preservation of capital and maintenance of liquidity. The
fact that all assets of this Fund are invested in securities backed by the
full faith and credit of the U.S. Government adds a dimension of credit
safety to this portfolio. Of course, neither the market value of the Fund's
portfolio securities, nor Fund shares, are guaranteed or insured by the U.S.
Government.
As announced by The Dreyfus Corporation this month, Joseph S. DiMartino
has resigned as President of The Dreyfus Corporation and as portfolio manager
of Dreyfus 100% U.S. Treasury Money Market Fund in order to assume new duties
as Chairman of the Boards of all Dreyfus mutual funds. I have worked closely
with Mr. DiMartino for the past thirteen years and currently manage other
Dreyfus money market funds.
I am committed to continuing the superior investment service this Fund has
provided to its investors in the past and look
forward to serving your investment needs in the future.
Sincerely,
(Logo Signature)
Patricia A. Larkin
Portfolio Manager
January 17, 1995
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS--62.3% PURCHASE AMOUNT VALUE
----------- ------------- ------------
<S> <C> <C> <C>
1/12/95.................................................... 3.51% $ 20,242,000 $ 20,221,057
1/19/95.................................................... 5.59 101,000,000 100,749,551
1/26/95.................................................... 5.04 19,736,000 19,667,746
2/2/95..................................................... 5.13 24,247,000 24,137,995
2/9/95..................................................... 5.32 51,015,000 50,724,658
2/23/95.................................................... 5.35 75,000,000 74,414,792
3/2/95..................................................... 5.68 9,824,000 9,732,227
3/9/95..................................................... 5.68 235,074,000 232,623,772
3/16/95.................................................... 5.51 151,170,000 149,477,659
3/23/95.................................................... 5.57 101,917,000 100,658,305
3/30/95.................................................... 5.57 16,201,000 15,983,618
4/6/95..................................................... 5.84 60,000,000 59,090,375
5/18/95.................................................... 5.95 14,352,000 14,036,245
6/1/95..................................................... 5.07 30,000,000 29,392,225
6/8/95..................................................... 6.34 2,605,000 2,534,801
------------
TOTAL U.S. TREASURY BILLS
(cost $903,445,026)........................................ $ 903,445,026
===============
U.S. TREASURY NOTES--36.8%
4.25%, 1/31/95............................................. 4.54 % $158,942,000 $ 158,892,264
7.75%, 2/15/95............................................. 5.29 150,000,000 150,403,268
3.875%, 2/28/95............................................ 5.06 95,000,000 94,819,845
3.875%, 3/31/95............................................ 5.65 109,850,000 109,353,199
5.875%, 5/15/95............................................ 6.44 20,308,000 20,262,251
-------------
TOTAL U.S. TREASURY NOTES
(cost $533,730,827)........................................ $ 533,730,827
===============
TOTAL INVESTMENTS
(cost $1,437,175,853)............................ 99.1% $1,437,175,853
===== ==============
CASH AND RECEIVABLES (NET)........................... .9% $ 13,562,664
===== ==============
NET ASSETS........................................... 100.0% $1,450,738,517
===== ==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
ASSETS:
<S> <C> <C>
Investments in securities, at value_Note 1(a)........................... $1,437,175,853
Cash.................................................................... 2,400,171
Receivable for investment securities sold............................... 100,687,409
Interest receivable..................................................... 12,015,044
Prepaid expenses........................................................ 217,997
--------------
1,552,496,474
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 614,072
Payable for investment securities purchased............................. 100,749,551
Accrued expenses........................................................ 394,334 101,757,957
-------------- ------------
NET ASSETS ................................................................ $1,450,738,517
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,450,564,321
Accumulated undistributed investment income_net......................... 184,280
Accumulated net realized (loss) on investments.......................... (10,084)
----------------
NET ASSETS at value applicable to 1,450,275,605 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $1,450,738,517
==============
NET ASSET VALUE, offering and redemption price per share
($1,450,738,517 / 1,450,275,605 shares)................................. $1.00
=====
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994
INVESTMENT INCOME:
<S> <C> <C>
INTEREST INCOME......................................................... $65,666,642
EXPENSES:
Management fee_Note 2(a).............................................. $8,214,107
Shareholder servicing costs_Note 2(b)................................. 2,867,717
Prospectus and shareholders' reports.................................. 209,909
Custodian fees........................................................ 111,256
Professional fees..................................................... 84,845
Registration fees..................................................... 53,092
Trustees' fees and expenses_Note 2(c)................................. 48,954
Miscellaneous......................................................... 94,433
------------
TOTAL EXPENSES.................................................... 11,684,313
-------------
INVESTMENT INCOME--NET...................................................... 53,982,329
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b)............................... (10,084)
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $53,972,245
===========
See notes to financial statements.
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
-----------------------------------
1993 1994
---------------- ----------------
OPERATIONS:
Investment income_net................................................... $ 61,432,606 $ 53,982,329
Net realized gain (loss) on investments................................. 42,916 (10,084)
---------------- ----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 61,475,522 53,972,245
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income_net................................................... (61,432,606) (53,798,049)
---------------- ----------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................... 2,699,422,256 1,651,231,223
Dividends reinvested.................................................... 58,068,259 51,035,988
Cost of shares redeemed................................................. (3,864,644,720) (2,169,632,380)
---------------- ----------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........ (1,107,154,205) (467,365,169)
---------------- ----------------
TOTAL (DECREASE) IN NET ASSETS.................................... (1,107,111,289) (467,190,973)
NET ASSETS:
Beginning of year....................................................... 3,025,040,779 1,917,929,490
---------------- ----------------
End of year (including undistributed investment income-net;
$184,280 in 1994)..................................................... $1,917,929,490 $1,450,738,517
=============== ===============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
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.
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
--------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $1.0004 $1.0000 $1.0001 $1.0001 $1.0002
------- ------- ------- -------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ .0762 .0603 .0358 .0253 .0334
Net realized gain (loss) on investments...... -- .0001 -- .0001 --
------- ------- ------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .0762 .0604 .0358 .0254 .0334
------- ------- ------- -------- -------
DISTRIBUTIONS;
Dividends from investment income_net......... (.0766) (.0603) (.0358) (.0253) (.0333)
------- ------- ------- -------- -------
Net asset value, end of year................. $1.0000 $1.0001 $1.0001 $1.0002 $1.0003
======= ======= ======= ======== =======
TOTAL INVESTMENT RETURN 7.93% 6.20% 3.64% 2.56% 3.38%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .09% .14% .35% .65% .71%
Ratio of net investment income to average net assets 7.65% 5.86% 3.62% 2.53% 3.29%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ .60% .50% .27% .02% --
Net Assets, end of year (000's Omitted)...... $1,159,309 $3,773,615 $3,025,041 $1,917,929 $1,450,739
See notes to financial statements.
</TABLE>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
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, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. 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. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
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.
Effective on January 1, 1994, the Fund was reorganized as a Massachusetts
business trust under the name Dreyfus 100% U.S. Treasury Money Market Fund.
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.
(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 the 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.
On January 3, 1995, the Fund declared a cash dividend of approximately
$.000127065 per share from undistributed investment income-net which includes
investment income-net for Saturday, December 31, 1994.
Prior to January 1, 1994 the Fund was a limited partnership and was not
required to distribute realized capital gains to avoid Federal income and
excise taxes. Prior years' gains and losses had been allocated to
shareholders and not paid, in accordance with the limited partnership
structure. This resulted in a difference between financial reporting purposes
versus Federal Income tax purposes, with respect to the treatment of such
allocated gains and losses. The Fund has therefore reclassified $288,716 from
accumulated net realized loss on investments to paid-in-capital. This amount
represented the cumulative effect of such differences. Results of operations
and net assets were not effected by this reclassification.
(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.
At December 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).
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 .50 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, interest on borrowings, brokerage
commissions and extraordinary expenses, exceed the expense limitation of any
state having jurisdiction over the Fund for any full year. The most stringent
state expense limitation applicable to the Fund presently requires
reimbursement of expenses in any full year that such expenses (exclusive of
certain expenses as described above) exceed 2 1/2% of the first $30 million,
2% of the next $70 million and 1 1/2% of the excess over $100 million of the
average value of the Fund's net assets in accordance with California "blue
sky" regulations. There was no expense reimbursement for the year ended
December 31, 1994.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of
1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to 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. During the year ended
December 31, 1994, the Fund was charged an aggregate of $1,560,279 pursuant
to the Shareholder Services Plan.
(C) Prior to August 24, 1994, certain officers and trustees of the Fund
were "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 $4,500 and an attendance fee of $500 per meeting.
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus 100% U.S. Treasury Money Market Fund, including the statement of
investments, as of December 31, 1994, 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 December 31, 1994 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 100% U.S. Treasury Money Market Fund at December 31,
1994, 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.
(Logo Signature)
New York, New York
February 1, 1995
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
For State individual income tax purposes, the Fund hereby designates
100.00% of the ordinary income dividends paid during its fiscal year ended
December 31, 1994 as attributable to interest income from direct obligations
of the United States. Such dividends are currently exempt from taxation for
individual income tax purposes in most states, including New York, California
and the District of Columbia.
DREYFUS 100% U.S. TREASURY
MONEY MARKET FUND
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
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. 071AR9412
100% U.S. Treasury
Money Market
Fund
Annual Report
December 31, 1994
