<PAGE>
Dreyfus
100% U.S. Treasury
Money Market
Fund
Annual Report
December 31, 1996
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- --------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to report that Dreyfus 100% U.S. Treasury Money Market Fund
provided a yield of 4.54% for the fiscal year ended December 31, 1996. After
taking into account the effect of compounding, the annualized effective yield
was 4.63%.*
MONEY MARKET OVERVIEW
The money market in 1996 was characterized by considerable volatility.
However, when all was said and done, the changes in prices and yields over the
year were not very great. The three-month U.S. Treasury bill rate, a bellwether
measurement, closed the year yielding 5.18%, only 11 basis points above the rate
when the year began.
The major influences on rates during the year were the market's expectations
of possible action by the Federal Reserve Board; also, the state of the economy
and the market's expectations of how it might behave. Indeed, it was a year when
anticipations and expectations influenced the market as much as the actual
developments themselves.
Early in the year, rates generally rose, especially after strong employment
reports last spring and early summer convinced the money market that the Fed
would need to tighten money rates in order to prevent a recurrence of inflation.
By late summer, however, it became clear that inflation was not an immediate
threat and the Fed acknowledged that by taking no preemptive action.
Furthermore, the economy was a constructive influence, providing continued yet
moderate growth without exerting undue upward pressure on wage levels or general
price indications. Thus in the latter part of the year interest rates simmered
down, though not without short-lived inflation "scares."
To take advantage of this kind of market, we followed a policy for most of
the year of keeping our average maturities somewhat longer than the industry
average. Our maturity structure has been geared to deal with changeable
eventualities, while seeking superior yields.
Interest yields, in the long run, reflect the underlying economy. As 1997
begins, signs of strength continue to be visible, despite the inevitable weak
spots. Thus it would be prudent to plan for some action this year by the Fed to
step, once again, on the economic brakes. We believe such action could come as
early as midwinter, or later if the economy takes a more measured pace toward
expansion.
We will continue to look for opportunities to extend maturities in an effort
to reap better yields, yet not neglect to safeguard the underlying capital.
Sincerely,
Patricia A. Larkin
Senior Portfolio Manager
January 16, 1997
New York, N.Y.
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
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Statement of Investments December 31, 1996
<TABLE>
<CAPTION>
Annualized
Yield on
Date of Principal
U.S. Treasury Bills--31.2% Purchase Amount Value
- ------------------------------------------------------------------ ------------- ------------ ------------
<S> <C> <C> <C>
1/2/97......................................................... 4.94% $ 894,000 $ 893,879
1/9/97......................................................... 5.04 8,437,000 8,427,658
1/16/97........................................................ 5.04 19,620,000 19,579,314
1/23/97........................................................ 5.04 10,263,000 10,231,798
2/6/97......................................................... 5.20 21,052,000 20,946,354
2/13/97........................................................ 5.06 32,094,000 31,902,328
2/20/97........................................................ 5.28 18,832,000 18,697,430
3/6/97......................................................... 5.25 45,603,000 45,189,071
3/20/97........................................................ 4.91 536,000 530,368
3/27/97........................................................ 5.15 535,000 528,659
4/3/97......................................................... 5.57 41,000,000 40,446,467
4/17/97........................................................ 5.23 14,025,000 13,814,327
5/1/97......................................................... 5.09 7,245,000 7,124,371
5/8/97......................................................... 5.18 39,682,000 38,975,054
5/15/97........................................................ 5.17 5,216,000 5,118,089
5/22/97........................................................ 5.18 3,877,000 3,800,312
5/29/97........................................................ 5.18 962,000 942,048
6/12/97........................................................ 5.16 32,957,000 32,209,535
6/19/97........................................................ 5.21 6,619,000 6,461,407
7/24/97........................................................ 5.56 61,939,000 60,084,585
8/21/97........................................................ 5.91 15,000,000 14,459,150
11/13/97....................................................... 5.37 22,530,000 21,520,418
--------------
TOTAL U.S. TREASURY BILLS (cost $401,882,622)..................... $ 401,882,622
==============
U.S. Treasury Notes--63.7%
- ------------------------------------------------------------------
7.50%, 1/31/97................................................. 5.12% $130,000,000 $ 130,228,048
4.75%, 2/15/97................................................. 5.31 5,000,000 4,995,206
6.75%, 2/28/97................................................. 5.32 78,120,000 78,288,794
6.875%, 2/28/97................................................ 5.19 318,896,000 319,696,525
6.625%, 3/31/97 ............................................... 5.11 145,000,000 145,487,715
6.875%, 3/31/97................................................ 5.24 10,293,000 10,331,598
6.875%, 4/30/97................................................ 5.15 30,000,000 30,160,466
6.125%, 5/31/97................................................ 5.23 100,000,000 100,306,260
--------------
TOTAL U.S. TREASURY NOTES (cost $819,494,612)..................... $ 819,494,612
==============
TOTAL INVESTMENTS
(cost $1,221,377,234)................................... 94.9% $1,221,377,234
====== ==============
CASH AND RECEIVABLES (NET) ................................. 5.1% $ 65,476,680
====== ==============
NET ASSETS.................................................100.0% $1,286,853,914
====== ==============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1996
<TABLE>
<CAPTION>
Cost Value
-------------- ---------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $1,221,377,234 $1,221,377,234
Cash............................................. 49,276,517
Interest receivable.............................. 16,935,394
Prepaid expenses and other assets................ 83,057
--------------
1,287,672,202
--------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 708,907
Accrued expenses................................. 109,381
--------------
818,288
--------------
NET ASSETS................................................................ $1,286,853,914
==============
REPRESENTED BY: Paid-in capital.................................. $1,287,032,437
Accumulated net realized gain (loss) on investments (178,523)
---------------
NET ASSETS..................................................................... $1,286,853,914
==============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized). 1,286,743,721
NET ASSET VALUE, offering and redemption price per share....................... $1.00
=====
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- ------------------------------------------------------------------------------
<TABLE>
Statement of Operations Year Ended December 31, 1996
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income................................. $66,622,771
EXPENSES: Management fee--Note 2(a)......................... $6,308,947
Shareholder servicing costs--Note 2(b)............ 2,541,398
Custodian fees................................... 93,456
Trustees' fees and expenses--Note 2(c)........... 68,719
Prospectus and shareholders' reports............. 63,181
Professional fees................................ 48,418
Registration fees................................ 34,939
Miscellaneous.................................... 30,472
------------
Total Expenses.............................. 9,189,530
-------------
INVESTMENT INCOME--NET.......................................................... 57,433,241
NET REALIZED GAIN(LOSS) ONINVESTMENTS--Note 1(b)............................... (165,664)
-------------
NET INCREASEINNETASSETSRESULTINGFROMOPERATIONS................................ $57,267,577
=============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- -----------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1996 December 31, 1995
-------------------- --------------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 57,433,241 $ 69,200,745
Net realized gain (loss) on investments.............................. (165,664) (2,775)
---------------- ----------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 57,267,577 69,197,970
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................ (57,775,920) (69,042,346)
---------------- ----------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 2,384,073,030 2,069,487,084
Dividends reinvested................................................. 54,349,594 65,120,351
Cost of shares redeemed.............................................. (2,461,751,306) (2,274,810,637)
---------------- ----------------
Increase (Decrease) in Net Assets from Beneficial
Interest Transaction (23,328,682) (140,203,202)
---------------- ----------------
Total Increase (Decrease) in Net Assets........................ (23,837,025) (140,047,578)
NET ASSETS:
Beginning of Period.................................................. 1,310,690,939 1,450,738,517
---------------- ----------------
End of Period........................................................ $1,286,853,914 $ 1,310,690,939
================ ================
Undistributed investment income--net.................................... -- $ 342,679
----------------
</TABLE>
See notes to financial statements.
<PAGE>
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.
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------
PER SHARE DATA: 1996 1995 1994 1993 1992
------ ------ ------ ----- ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period............... $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- -----
Investment Operations:
Investment income--net.............................. .046 .051 .033 .025 .036
----- ----- ----- ----- -----
Distributions:
Dividends from investment income--net............... (.046) (.051) (.033) (.025) (.036)
----- ----- ----- ----- -----
Net asset value, end of period..................... $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
TOTAL INVESTMENT RETURN............................... 4.67% 5.19% 3.38% 2.56% 3.64%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............ .73% .69% 71% .65% .35%
Ratio of net investment income
to average net assets........................... 4.55% 5.09% 3.29% 2.53% 3.62%
Decrease reflected in above expense ratios
due to undertakings by the Manager.............. -- -- -- .02% .27%
Net Assets, end of period (000's Omitted).......... $1,286,854 $1,310,691 $1,450,739 $1,917,929 $3,025,041
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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 per share of
$1.00.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(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.
(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 $165,700
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1996. If not
applied, $12,900 of the carryover expires in fiscal 2003 and $152,800 expires in
fiscal 2004.
At December 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 .50 of 1% of the value of the
Fund's average daily net assets and is payable monthly.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(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 period ended December 31, 1996, the Fund was charged an aggregate of
$1,619,385 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 $614,404 during the period ended December 31, 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 and the Trustee Emeritus receives 50% of such compensation.
<PAGE>
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, 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
December 31, 1996 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, 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 & YOUNG LLP
New York, New York
January 29, 1997
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- -------------------------------------------------------------------------------
Important Tax Information (Unaudited)
For State individual income tax purposes, the Fund hereby designates 99.98%
of the ordinary income dividends paid during its fiscal year ended December 31,
1996 as attributable to interest income from direct obligations of the United
States. Such dividends are currently exempt from taxation for income tax
purposes in most states, including New York, California and the District of
Columbia.
<PAGE>
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. 071AR9612
