<PAGE>
Dreyfus
100% U.S. Treasury
Money Market
Fund
Semi-Annual
Report
June 30, 1996
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- ------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
Dreyfus 100% U.S. Treasury Money Market Fund completed its latest
semi-annual fiscal period June 30, 1996, during which period interest rates
initially declined, and then began a rise that has lasted through the end of
the reporting period.
We are pleased to report that the Fund provided an annualized yield
of 4.53% to its shareholders for the six months. After taking into account
the effect of compounding the annualized effective yield was 4.63%.*
THE ECONOMY
The U.S. economy is rebounding in 1996 following its midcycle
growth slowdown of last year. Yet overall corporate profit growth is slowing
this year. Although actual inflation remains steady, faster economic growth
has reignited fears of higher future inflation. This has pushed bond yields
higher and built expectations of a Federal Reserve Board tightening in coming
months.
Economic growth has accelerated since year-end. The first quarter's
2.3% real Gross Domestic Product growth brought with it a demand rebound that
depleted inventories. Even stronger second quarter growth is apparent, led by
manufacturers' attempts to rebuild inventories. In addition, steady job
creation continues to support growth in consumer incomes and spending. As
yet, there are few indications of economic cooling. Some previously strong
capital goods sectors may now be slowing, but overall economic growth is
broadening to more industries. Despite better economic performance this year
than last, profit growth may have peaked last year.
Non-oil price inflation has remained tame this year, although
surging oil prices boosted overall inflation temporarily this spring.
Nevertheless, signs of a faster economic pace have reignited fears of higher
future inflation, especially coming from upward pressure on wages as the
labor market tightens. Thus, bond yields have risen substantially this year.
Short-term market rates are also higher in expectation of Federal Reserve
tightening in coming months. So far, long-term rates have risen much more than
short-term rates, forcing the yield curve to steepen. A steep yield curve is
usually supportive of sustained growth in the real economy.
As we look forward, the question arises whether the higher interest
rates already in place and those in prospect will effectively cool the
economy. At present, however, any advance signs of an eventual cooling off in
the economy are hard to discern. The preoccupation at present is with the
economy's impressive strength, and the problems such growth could create.
THE MONEY MARKET AND THE PORTFOLIO
During the latest six months, the money markets generally have
reflected the underlying economic conditions described in the preceding
section.
At the end of January, shortly after the latest semi-annual fiscal
period began, the Federal Reserve Board, still concerned about slack in the
economy, lowered interest rates by one quarter of one percent. The Federal
Funds rate was set at 5-1/4% and the discount rate at 5%.
As the previous year ended and a new one began, we had prepared the
portfolio for the possibility of lower rates, by extending average
maturities.
After the Fed's January 31 action, economic statistics began to
indicate that business activity was accelerating. By spring time this was
beginning to change the course of interest rates. Short-term yields started
firming. In recognition of this market trend, we began gradually to shorten
average maturities as opportunities arose. To make the Fund's returns as
attractive as possible, we tried to maintain maturities that were a bit
longer than the market average. However, in the face of rising concern about
a possible revival of inflation, average maturities were reduced as the year
proceeded.
Currently, the market clearly expects another change in course by
the Federal Reserve. The central bank has not revised its interest rate
targets since late January. Accordingly, we have been positioning the
portfolio for the possibility of higher rates.
The political season is now getting underway with a vengeance, with
the two major party conventions scheduled for August, followed by the
election campaign itself. This also must be factored into the interest rate
equation. Recent history demonstrates, however, that political nominating
conventions in past years have not dissuaded the Federal Reserve from taking
any action it deems necessary to manage the money supply and interest rates.
We appreciate the opportunity to manage money on your behalf and
will continue our best efforts to bring you rewarding returns.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Senior Portfolio Manager
July 18, 1996
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
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Statement of Investments June 30, 1996 (Unaudited)
Annualized
Yield on
Date of Principal
U.S. Treasury Bills--31.0% Purchase Amount Value
- -------------------------------------------------------------- ---------- ------------ --------------
<S> <C> <C> <C>
7/5/96.................................................... 5.13% $ 6,549,000 $ 6,545,365
7/25/96................................................... 5.51 61,645,000 61,428,156
8/8/96.................................................... 5.05 27,033,000 26,890,326
8/22/96................................................... 5.07 14,699,000 14,592,797
8/29/96................................................... 5.11 983,000 974,880
9/5/96.................................................... 5.14 20,000,000 19,813,733
9/12/96................................................... 5.13 46,395,000 45,917,941
9/19/96................................................... 5.19 112,464,000 111,185,301
10/3/96................................................... 5.17 26,456,000 26,106,853
2/6/97.................................................... 5.17 17,959,000 17,417,935
3/6/97.................................................... 5.41 10,000,000 9,645,911
4/3/97.................................................... 5.58 40,000,000 38,378,692
--------------
TOTAL U.S. TREASURY BILLS (cost $378,897,890)................. $ 378,897,890
--------------
--------------
U.S. Treasury Notes--63.2%
- --------------------------------------------------------------
7.875%, 7/15/96........................................... 5.11% $110,000,000 $ 110,109,644
6.125%, 7/31/96........................................... 5.05 155,000,000 155,113,466
4.375%, 8/15/96........................................... 5.09 25,000,000 24,975,464
6.25%, 8/31/96............................................ 5.16 125,000,000 125,145,284
7.25%, 8/31/96 ........................................... 5.22 50,000,000 50,132,530
6.5%, 9/30/96............................................. 5.20 40,000,000 40,115,237
8%, 10/15/96.............................................. 4.90 20,000,000 20,161,285
6.875%, 10/31/96.......................................... 5.24 109,927,000 110,449,309
7.25%, 11/15/96........................................... 5.33 100,000,000 100,647,914
7.25%, 11/30/96........................................... 5.41 35,000,000 35,234,533
--------------
TOTAL U.S. TREASURY NOTES (cost $772,084,666)................. $ 772,084,666
--------------
--------------
TOTAL INVESTMENTS (cost $1,150,982,556) ........... 94.2% $1,150,982,556
------ --------------
------ --------------
CASH AND RECEIVABLES (NET)......................... 5.8% $ 70,660,243
------ --------------
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NET ASSETS......................................... 100.0% $1,221,642,799
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See independent accountants' review report and notes to financial statements.
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Dreyfus 100% U.S. Treasury Money Market Fund
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Statement of Assets and Liabilities June 30, 1996 (Unaudited)
<S> <C> <C>
ASSETS:
Investments in securities, at value--Note 1(a)......................... $1,150,982,556
Cash................................................................... 3,783,677
Receivable for investment securities sold.............................. 50,000,000
Interest receivable.................................................... 17,532,423
Prepaid expenses and other assets...................................... 96,859
--------------
1,222,395,515
LIABILITIES:
Due to The Dreyfus Corporation and affiliates.......................... $622,045
Accrued expenses....................................................... 130,671 752,716
-------- --------------
NET ASSETS................................................................. $1,221,642,799
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--------------
REPRESENTED BY:
Paid-in capital........................................................ $1,221,553,427
Accumulated undistributed investment income-net........................ 297,293
Accumulated net realized (loss) on investments......................... (207,921)
--------------
NET ASSETS at value applicable to 1,221,264,711 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest
authorized............................................................. $1,221,642,799
--------------
--------------
NET ASSET VALUE, offering and redemption price per share
($1,221,642,799 / 1,221,264,711 shares)................................ $1.00
-----
-----
See independent accountants' review report and notes to financial statements.
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Dreyfus 100% U.S. Treasury Money Market Fund
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Statement of Operations six months ended June 30, 1996 (Unaudited)
<S> <C> <C>
INVESTMENT INCOME:
Interest Income......................................................... $33,475,035
Expenses:
Management fee--Note 2(a)............................................. $3,182,936
Shareholder servicing costs--Note 2(b)................................ 1,225,687
Custodian fees........................................................ 44,811
Trustees' fees and expenses--Note 2(c)................................ 35,834
Professional fees..................................................... 24,788
Registration fees..................................................... 18,897
Prospectus and shareholders' reports.................................. 8,262
Miscellaneous......................................................... 14,589
----------
Total Expenses.................................................... 4,555,804
-----------
INVESTMENT INCOME--NET...................................................... 28,919,231
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b)............................... (195,062)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $28,724,169
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-----------
See independent accountants' review report and notes to financial statements.
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Dreyfus 100% U.S. Treasury Money Market Fund
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Statement of Changes in Net Assets
Year Ended Six Months Ended
December 31, June 30, 1996
1995 (Unaudited)
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Investment income--net........................................... $ 69,200,745 $ 28,919,231
Net realized (loss) on investments............................... (2,775) (195,062)
--------------- ---------------
Net Increase In Net Assets Resulting From Operations........... 69,197,970 28,724,169
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net........................................... (69,042,346) (28,964,617)
--------------- ---------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold.................................... 2,069,487,084 1,011,430,986
Dividends reinvested............................................. 65,120,351 27,271,313
Cost of shares redeemed.......................................... (2,274,810,637) (1,127,509,991)
--------------- ---------------
(Decrease) In Net Assets From Beneficial Interest Transactions. (140,203,202) (88,807,692)
--------------- ---------------
Total (Decrease) In Net Assets............................... (140,047,578) (89,048,140)
NET ASSETS:
Beginning of period.............................................. 1,450,738,517 1,310,690,939
--------------- ---------------
End of period (including undistributed investment income--net:
$342,679 in 1995 and $297,293 in 1996)......................... $ 1,310,690,939 $ 1,221,642,799
--------------- ---------------
--------------- ---------------
See independent accountants' review report and notes to financial statements.
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Dreyfus 100% U.S. Treasury Money Market Fund
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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
Year Ended December 31, Ended
------------------------------------------------------------- June 30, 1996
PER SHARE DATA: 1991 1992 1993 1994 1995 (Unaudited)
----- ----- ----- ----- ----- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period...................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
Investment Operations;
Investment income--net........... .060 .036 .025 .033 .051 .023
----- ----- ----- ----- ----- -----
Distributions;
Dividends from investment
income--net.................... (.060) (.036) (.025) (.033) (.051) (.023)
----- ----- ----- ----- ----- -----
Net asset value, end of
period......................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
TOTAL INVESTMENT RETURN.............. 6.20% 3.64% 2.56% 3.38% 5.19% 4.57%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets..................... .14% .35% .65% .71% .69% .71%*
Ratio of net investment
income to average net
assets......................... 5.86% 3.62% 2.53% 3.29% 5.09% 4.53%*
Decrease reflected in above
expense ratios due to
undertakings by the Manager.... .50% .27% .02% -- -- --
Net Assets, end of period
(000's Omitted)................ $3,773,615 $3,025,041 $1,917,929 $1,450,739 $1,310,691 $1,221,643
<FN>
- -----------
*Annualized.
See independent acccountants' review report and notes to financial statements.
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Dreyfus 100% U.S. Treasury Money Market Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus 100% U.S. Treasury Money Market Fund (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 by
investing in obligations of the U.S. Treasury that provide interest income
exempt from state and local income taxes. 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. acts as the
distributor of the Fund's shares, which are sold to the public without a
sales charge.
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, it is the policy of the Fund not to distribute such gain.
On July 1, 1996, the Fund declared a cash dividend of approximately
$.0004 per share from undistributed investment income-net which includes
investment income-net for Saturday, June 29, 1996 and Sunday, June 30, 1996.
(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.
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.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
At June 30, 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 .50 of 1% of the value
of the Fund's average daily 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 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, 1996.
(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 six months ended June 30, 1996, the Fund was charged an aggregate
of $736,125 pursuant to the Shareholder Services Plan.
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 $310,512 during the six months ended June 30, 1996.
(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.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
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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, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended June 30, 1996. 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, 1995 and financial highlights for each of the five years in the
period ended December 31, 1995 and in our report dated January 31, 1996, 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
July 29, 1996
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[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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 071SA966
