DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus 100%
U.S.Treasury Money Market Fund. For its annual reporting period ended
December 31, 1995, your Fund provided an annualized yield of 5.09%. The
annualized effective yield after compounding was 5.21%.*
THE ECONOMY
Additional evidence that economic activity remained sluggish and that
inflation continued to be under control moved the Federal Reserve Board to
further reduce the Federal Funds rate in December. (The Federal Funds rate is
the rate at which the nation's banks borrow money from each other and is a
benchmark for other short-term rates.) This was the second reduction for this
important short-term rate in 1995, the first occurring in July. The latest
25-basis-point reduction in December put the rate at 5.50%. Major incentives
for this additional decrease were the favorable inflation report in November
and the generally slow rate of economic growth. As it did in July, the
Federal Reserve left unchanged the discount rate _ the rate at which the
Federal Reserve lends to member banks. The discount rate remained at 5.25%
throughout 1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and very modest industrial production lent credence to
fears about the possibility of recession. Consumer spending was inhibited
last year by the sluggish growth in wages and salaries and the continued
trend of corporate downsizing. The lethargic pace of consumer spending last
year culminated in one of the worst holiday sales periods since the business
slump in 1990-1991, despite steep price markdowns by retailers.
By November, the capacity utilization rate of the nation's factories
declined for the third consecutive month. This was a reflection of weakening
demand and further evidence of the diminishing pressure to raise prices.
Furthermore, inventories built up by year-end, another sign of slackening
demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the economy. As we go
forward without a budget agreement, we believe reductions in annually
appropriated spending will tend to inhibit the economy. With an agreement,
the combination of cuts in appropriations and other spending reductions could
have the same effect.
There are strong indications that inflation is under control. Until
mid-year 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now the focus seems to have shifted to actions designed to avoid
recession. In an election year, few things are less desirable for political
incumbents than recession.
MONEY MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
In the past 12 months, short-term Treasury rates trended lower, as
statistical evidence revealed a backdrop of weak to moderate economic growth
with subdued inflation. Strong technical factors and positive psychology
helped the market sustain its fundamentally bullish tone throughout the
period.
For example, the 3-month Treasury Bill averaged 5.69% for the month of
December 1994 compared to 5.08% for the month of December 1995.
Within this framework, your Fund's average maturity was extended during
the past fiscal year in an attempt to fully maximize yield potential in the
declining interest rate environment.
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 appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Portfolio Manager
January 16, 1996
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-54.6% PURCHASE AMOUNT VALUE
______ ________ ________
<S> <C> <C> <C>
1/4/96................................................... 5.40% $16,941,000 $ 16,933,480
1/11/96.................................................. 5.35 14,129,000 14,108,238
1/18/96.................................................. 5.35 83,734,000 83,525,187
1/25/96.................................................. 5.46 63,868,000 63,639,793
2/1/96................................................... 5.42 53,831,000 53,582,865
2/8/96................................................... 5.58 209,294,000 208,089,171
2/15/96.................................................. 5.62 4,190,000 4,161,377
2/22/96.................................................. 5.42 11,291,000 11,203,746
3/7/96................................................... 5.13 61,173,000 60,603,573
3/14/96.................................................. 5.25 23,644,000 23,395,725
4/11/96.................................................. 5.48 45,143,000 44,468,232
4/18/96.................................................. 5.45 25,000,000 24,602,500
6/13/96.................................................. 5.34 50,000,000 48,815,555
6/20/96.................................................. 5.23 26,807,000 26,157,944
7/25/96.................................................. 5.82 34,000,000 32,927,341
_______-
TOTAL U.S. TREASURY BILLS (cost $716,214,727)................ $ 716,214,727
========
U.S. TREASURY NOTES-43.3%
9.25%, 1/16/96........................................... 5.57% $ 55,000,000 $55,075,195
4%, 1/31/96.............................................. 5.51 50,000,000 49,933,174
7.5%, 1/31/96............................................ 5.54 25,000,000 25,034,751
4.625%, 2/15/96.......................................... 5.48 50,000,000 49,937,855
8.875%, 2/15/96.......................................... 5.63 50,000,000 50,185,335
4.625%, 2/29/96.......................................... 5.48 130,000,000 129,807,767
5.5%, 4/30/96............................................ 5.36 15,000,000 14,995,586
7.625%, 4/30/96.......................................... 5.26 25,000,000 25,164,696
5.875%, 5/31/96.......................................... 5.25 75,000,000 75,157,412
6.5%, 9/30/96............................................ 5.11 25,000,000 25,218,479
6.875%, 10/31/96......................................... 5.25 65,700,000 66,497,301
________
TOTAL U.S. TREASURY NOTES (cost $567,007,551)................ $ 567,007,551
========
TOTAL INVESTMENTS (cost $1,283,222,278).......... 97.9% $1,283,222,278
==== ========
CASH AND RECEIVABLES (NET)....................... 2.1% $ 27,468,661
==== ========
NET ASSETS....................................... 100.0% $1,310,690,939
==== ========
See notes to financial statements.
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<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $1,283,222,278
Cash.................................................................... 17,689,625
Interest receivable..................................................... 10,581,449
Prepaid expenses and other assets....................................... 130,790
________
1,311,624,142
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $678,758
Accrued expenses........................................................ 254,445 933,203
_____ ________
NET ASSETS ................................................................ $1,310,690,939
========
REPRESENTED BY:
Paid-in capital......................................................... $1,310,361,119
Accumulated undistributed investment income-net......................... 342,679
Accumulated net realized (loss) on investments.......................... (12,859)
________
NET ASSETS at value applicable to 1,310,072,403 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest authorized) $1,310,690,939
========
NET ASSETS VALUE, offering and redemption price per share
($1,310,690,939 / 1,310,072,403 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, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $78,633,310
EXPENSES:
Management fee-Note 2(a).............................................. $6,796,056
Shareholder servicing costs-Note 2(b)................................. 2,198,946
Prospectus and shareholders' reports.................................. 143,039
Custodian fees........................................................ 99,374
Trustees' fees and expenses-Note 2(c)................................. 66,008
Professional fees..................................................... 58,385
Registration fees..................................................... 46,860
Miscellaneous......................................................... 23,897
_____
TOTAL EXPENSES.................................................... 9,432,565
______
INVESTMENT INCOME-NET....................................................... 69,200,745
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (2,775)
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $69,197,970
========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
____________________________________
1994 1995
_________ _________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 53,982,329 $ 69,200,745
Net realized (loss) on investments................................... (10,084) (2,775)
________ ________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 53,972,245 69,197,970
________ ________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................ (53,798,049) (69,042,346)
________ ________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 1,651,231,223 2,069,487,084
Dividends reinvested................................................. 51,035,988 65,120,351
Cost of shares redeemed.............................................. (2,169,632,380) (2,274,810,637)
________ ________
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS..... (467,365,169) (140,203,202)
________ ________
TOTAL (DECREASE) IN NET ASSETS................................. (467,190,973) (140,047,578)
NET ASSETS:
Beginning of year.................................................... 1,917,929,490 1,450,738,517
________ ________
End of year (including undistributed investment income-net:
$184,280 in 1994 and $342,679 in 1995)............................. $ 1,450,738,517 $ 1,310,690,939
======== ========
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: 1991 1992 1993 1994 1995
____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____ ____ ____ ____ ____
INVESTMENT OPERATIONS;
Investment income-net........................ .060 .036 .025 .033 .051
____ ____ ____ ____ ____
DISTRIBUTIONS;
Dividends from investment income-net......... (.060) (.036) (.025) (.033) (.051)
____ ____ ____ ____ ____
Net asset value, end of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____ ____ ____ ____ ____
____ ____ ____ ____ ____
TOTAL INVESTMENT RETURN.......................... 6.20% 3.64% 2.56% 3.38% 5.19%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .14% .35% .65% .71% .69%
Ratio of net investment income to average net assets 5.86% 3.62% 2.53% 3.29% 5.09%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ .50% .27% .02% - -
Net Assets, end of year (000's Omitted)...... $3,773,615 $3,025,041 $1,917,929 $1,450,739 $1,310,691
See notes to financial statements.
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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. 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, if any, 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 2, 1996, the Fund declared a cash dividend of approximately
$.0003 per share from undistributed investment income-net which includes
investment income-net for Saturday, December 30, 1995 and Sunday, December
31, 1995.
(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, 1995, 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).
The Fund has an unused capital loss carryover of approximately $12,900
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1995. If not
applied, the carryover expires in fiscal 2003.
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 21\2% of the first $30 million,
2% of the next $70 million and 11\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, 1995.
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 $53,508 for the period from
December 1, 1995 through December 31, 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 certain allocated expenses of providing personal
services and/or maintaining 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, 1995, the Fund was charged an aggregate of
$1,176,947 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
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, 1995, 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, 1995 by correspondence with the custodian.
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,
1995, 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
January 31, 1996
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, 1995 as attributable to interest income from direct obligations
of the United States government. 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 lion "d" logo]
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
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. 071AR9512
[Dreyfus logo]
100% U.S. Treasury
Money Market
Fund
Annual Report
December 31, 1995
