DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
During the last six months U.S. economic activity has declined gradually.
As might be expected, this brought about a drop in interest rates.
As far as Government securities are concerned, other factors were at work
as well. The evident determination of the Republican Congress to reduce
Government spending, and thus hopefully cut the deficit, also had its effect
on interest rates. It is too early to tell how effective the talk of budget
cutting in Washington will be in the final analysis. However, if it brings
about a lower level of Government borrowing, that would certainly be a major
factor in setting interest rates.
For the six months ended June 30, 1995, the Fund produced an annualized
yield of 5.20%. The annualized effective yield was 5.33% after taking into
account the effect of compounding.*
We achieved this yield level by lengthening maturities gradually during
the six-month period. This was done in anticipation of lower interest rates,
which became more and more likely as the economy gave continued signs of
slowing down.
The Federal Reserve Board, which raised interest rates seven times during
1994 and early 1995 to head off inflation, became concerned that the drop in
economic performance might turn into an actual business recession.
Accordingly, in early July the Federal Reserve reversed course and made a
modest cut in the Federal Funds rate.
As this letter is written, the economy has distinctly cooled off from the
frothy activity that prevailed last year. Thus one could say that the Fed's
policies have been successful. Inflation has been held at bay and few
observers believe that the "soft landing" will turn into a full-blown
economic recession.
However, the Federal Reserve showed laudable caution in the July
reduction of short-term rates. If more of that medicine is needed, we feel
that the Fed will not hesitate to act accordingly. Nonetheless, the central
bank must be ever watchful lest rate-cutting bring on the recurrence of
inflation which the Fed has so strenuously sought to avoid.
In our opinion, the money market has already discounted the possibility
of further Fed moves to lower interest rates. To a certain extent, that is
already built into current market prices. Our strategy under these
circumstances is to remain in the long end of the market as long as
necessary, in an effort to maintain the best possible level of yields.
We appreciate the opportunity to put your cash to work in the money
market and will continue to exert our best efforts to obtain competitive
returns on your behalf.
Sincerely,
Patricia A. Larkin
Portfolio Manager
July 12, 1995
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-59.1% PURCHASE AMOUNT VALUE
------------ -------------- -----------------
<S> <C> <C> <C> <C>
7/13/95.................................................... 5.73% $ 1,687,000 $ 1,683,826
7/27/95.................................................... 5.78 256,777,000 255,720,053
8/3/95..................................................... 5.77 33,814,000 33,637,317
8/10/95.................................................... 5.73 5,315,000 5,281,634
8/17/95.................................................... 5.76 8,163,000 8,102,483
8/24/95.................................................... 5.76 42,592,000 42,229,600
8/31/95.................................................... 5.58 8,214,000 8,137,380
9/7/95..................................................... 5.86 27,864,000 27,562,312
9/14/95.................................................... 6.06 105,987,000 104,688,888
9/21/95.................................................... 5.96 17,557,000 17,325,452
9/28/95.................................................... 5.54 37,041,000 36,540,814
10/5/95.................................................... 5.99 72,049,000 70,932,295
11/16/95................................................... 5.84 21,950,000 21,472,496
11/24/95................................................... 5.75 50,000,000 48,866,472
12/7/95.................................................... 5.61 23,616,000 23,046,500
12/14/95................................................... 5.61 100,000,000 97,483,486
--------------
TOTAL U.S. TREASURY BILLS (cost $802,711,008).................. $ 802,711,008
==============
U.S. TREASURY NOTES-40.2%
4.25%, 7/31/95............................................. 6.17% $265,000,000 $ 264,579,667
4.625%, 8/15/95............................................ 5.95 72,656,000 72,533,384
8.375%, 8/15/95............................................ 5.91 75,000,000 75,215,157
3.875%, 8/31/95............................................ 5.67 75,000,000 74,757,735
3.875%, 10/31/95........................................... 5.72 25,100,000 24,937,117
4.625%, 2/29/96............................................ 5.52 15,000,000 14,895,549
9.375%, 4/15/96............................................ 5.50 19,000,000 19,528,313
--------------
TOTAL U.S. TREASURY NOTES (cost $546,446,922).................. $ 546,446,922
===============
TOTAL INVESTMENTS (cost $1,349,157,930)............ 99.3% $1,349,157,930
========= ===============
CASH AND RECEIVABLES (NET)......................... .7% $ 9,009,449
========= ===============
NET ASSETS......................................... 100.0% $1,358,167,379
========= ===============
See independent accountants' review report and notes to financial statements.
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<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $1,349,157,930
Interest receivable..................................................... 10,062,019
Prepaid expenses........................................................ 192,996
---------------
1,359,412,945
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $556,254
Due to Custodian........................................................ 188,563
Accrued expenses........................................................ 500,749 1,245,566
------------ ---------------
NET ASSETS.................................................................. $1,358,167,379
===============
REPRESENTED BY:
Paid-in capital......................................................... $1,358,150,034
Accumulated undistributed net realized gain on investments.............. 17,345
---------------
NET ASSETS at value applicable to 1,357,861,318 outstanding shares of
Beneficial Interest, equivalent to $1.00 per share (unlimited number of
$.001 par value shares authorized)...................................... $1,358,167,379
===============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $40,764,348
EXPENSES:
Management fee-Note 2(a).............................................. $3,439,763
Shareholder servicing costs-Note 2(b)................................. 1,239,640
Prospectus and shareholders' reports.................................. 116,387
Custodian fees........................................................ 51,766
Trustees' fees and expenses-Note 2(c)................................. 33,575
Professional fees..................................................... 31,618
Registration fees..................................................... 24,497
Miscellaneous......................................................... 5,148
---------------
TOTAL EXPENSES.................................................... 4,942,394
--------------
INVESTMENT INCOME-NET....................................................... 35,821,954
NET REALIZED GAIN ON INVESTMENTS-Note 1(b).................................. 27,429
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $35,849,383
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995
1994 (UNAUDITED)
----------------- -------------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 53,982,329 $ 35,821,954
Net realized gain (loss) on investments........................... (10,084) 27,429
----------------- -------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ 53,972,245 35,849,383
----------------- -------------------
- ---------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net............................................. (53,798,049) (36,006,234)
----------------- -------------------
- ---------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold..................................... 1,651,231,223 1,023,176,971
Dividends reinvested.............................................. 51,035,988 34,069,649
Cost of shares redeemed........................................... (2,169,632,380) (1,149,660,907)
----------------- -------------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.. (467,365,169) (92,414,287)
----------------- -------------------
TOTAL (DECREASE) IN NET ASSETS.............................. (467,190,973) (92,571,138)
NET ASSETS:
Beginning of period............................................... 1,917,929,490 1,450,738,517
----------------- -------------------
End of period (including undistributed investment income-net;
$184,280 in 1994)............................................... $ 1,450,738,517 $ 1,358,167,379
=============== ===================
See independent accountants' review report and 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 period indicated. This
information has been derived from the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1995
----------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
-------- -------- -------- -------- --------- ------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.0004 $1.0000 $1.0001 $1.0001 $1.0002 $1.0003
-------- -------- -------- -------- --------- ------------------
INVESTMENT OPERATIONS:
Investment income-net............... .0762 .0603 .0358 .0253 .0334 .0258
Net realized gain (loss) on investments -- .0001 -- .0001 -- --
-------- -------- -------- -------- --------- ------------------
TOTAL FROM INVESTMENT OPERATIONS.. .0762 .0604 .0358 .0254 .0334 .0258
-------- -------- -------- -------- --------- ------------------
DISTRIBUTIONS;
Dividends from investment income-net (.0766) (.0603) (.0358) (.0253) (.0333) (.0259)
-------- -------- -------- -------- --------- ------------------
Net asset value, end of period...... $1.0000 1.0001 $1.0001 $1.0002 $1.0003 $1.0002
======== ======== ======== ======== ======== ===================
TOTAL INVESTMENT RETURN................. 7.93% 6.20% 3.64% 2.56% 3.38% 5.28%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .09% .14% .35% .65% .71% .72%*
Ratio of net investment income to
average net assets................ 7.65% 5.86% 3.62% 2.53% 3.29% 5.21%*
Decrease reflected in above expense ratios
due to undertakings by the Manager .60% .50% .27% .02% -- --
Net Assets, end of period (000's Omitted) $1,159,309 $3,773,615 $3,025,041 $1,917,929 $1,450,739 $1,358,167
* Annualized
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
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. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
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.
(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 June 30, 1995, the cost of investments for Federal income tax purposes
was substantially the same
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 .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 six months ended
June 30, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, 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 six months ended June 30, 1995, the Fund was charged an
aggregate of $733,818 pursuant to the Shareholder Services Plan.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus 100% U.S. Treasury Money Market Fund, including the statement of
investments, as of June 30, 1995, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended June 30, 1995. 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
December 31, 1994 and financial highlights for each of the five years in the
period ended December 31, 1994 and in our opinion dated February 1, 1995, 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
August 2, 1995
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. 071SA956
100% U.S. Treasury
Money Market
Fund
Semi-Annual
Report
June 30, 1995
(Dreyfus Logo)
