<PAGE>
Dreyfus
100% U.S. Treasury
Money Market Fund
Annual Report
December 31, 1997
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- --------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to report the performance for the Dreyfus 100% U.S. Treasury
Money Market Fund for the 12-month reporting period ended December 31, 1997.
Your Fund produced a yield of 4.64% and, after taking into account the effect of
compounding, the effective yield was 4.74%.*
ECONOMIC REVIEW
In 1997, the U.S. economy put in its best growth performance of this business
cycle to date. In tandem, the labor market tightened markedly, marginally
boosting wage inflation towards year end. Yet price inflation decelerated and
bond yields fell. Although corporate profit growth was robust for much of the
year, strains began to appear in the second half in some sectors. The Federal
Reserve Board (the "Fed") tightened credit early in the year, then subsequently
stayed on hold, torn between strong economic reports at home and worsening
financial crises overseas. While the problems overseas may slow the U.S. economy
somewhat in 1998, incoming evidence indicates little adverse impact on economic
activity to date.
Real Gross Domestic Product (GDP) grew 3.8% in 1997, its best annual growth
since 1988. Almost all the major sectors contributed to growth. Households
enjoyed rising real incomes as wage increases outpaced price inflation. Moderate
interest rates buoyed housing demand. Tightening factory capacity boosted
capital spending, and until late in the year, steady foreign growth kept exports
robust. That many of these sectors grew simultaneously in a late phase of the
business cycle was unusual. The year 1997 also saw a dramatic narrowing of the
Federal budget deficit. It is likely that the associated drop in Federal
borrowing boosted the supply of credit available to the private sector.
As mentioned, overall corporate profit growth rebounded in 1997, after
slowing in 1996. Profits from domestic sources generally did well. However,
profits from international sources began to show strains in the second half,
impacted by the rising dollar and by financial stresses overseas. More recently,
profits at some companies have been slowed by price weakness.
Economic data this winter show the economy still quite strong although some
leading statistics have begun to signal somewhat slower economic growth for
1998. First, recently slowing export orders and rising import orders imply a
widening trade deficit. Second, the number of announced layoffs has begun to
rise, indicating some future easing of labor market pressures. Once these
leading indicators actually show up in a slowing of the economy, market
expectations may shift to anticipate the possibility of a move by the Fed to
ease credit. At the start of 1998, there was uncertainty about both the severity
of Asian stresses and their impact on the U.S. economy.
MONEY MARKET OVERVIEW
The financial turmoil in Asia that started affecting security markets last
fall did not have much effect as yet on the money market before the close of
1997. However, shortly after year-end, interest rates began declining. Yet for
much of 1997, money market rates stayed within a narrow range.
Last March, when the Fed raised short-term rates by a quarter point, the
money market responded with a brief spurt in yields. As the year went on, the
chief influences on rates continued to be the outlook for inflation in the U.S.,
which was benign, and prospects for corporate profits, which continued favorable
for most of the year. In addition, the customary year-end refinancings sent
interest rates up for a while.
Indeed, until the Asian problems began weakening equity prices, the money
market appeared to be expecting a possible Fed move to raise interest rates.
Late in 1997 and especially in early 1998, the picture changed. Lately, the
market's expectations have focused more on a possible move by the Fed to reduce
interest rates. The reasoning is that
<PAGE>
such an action would be a preemptive strike against an economic trend that
hasn't been mentioned for years -- potential deflation.
PORTFOLIO FOCUS
Against this backdrop, throughout the fiscal year we maintained an average
maturity slightly longer than the industry average for 100% U.S. Treasury money
market funds, as published by IBC Financial Data. We believe this strategy has
been in the interest of our shareholders. The currently volatile environment
requires flexibility on our part as managers. Of course, we will make
adjustments to the portfolio as required by the dynamics of the market.
Sincerely,
/S/Patricia A. Larkin
Patricia A. Larkin
Senior Portfolio Manager
January 20, 1998
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested monthly.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
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<TABLE>
<CAPTION>
Statement of Investments December 31, 1997
Annualized
Yield on
Date of Principal
U.S. Treasury Bills--19.6% Purchase Amount Value
- ------------------------------------------------------------------ --------- ------------- --------------
<S> <C> <C> <C>
1/22/98........................................................ 5.26% $ 47,407,000 $ 47,262,884
1/29/98........................................................ 5.11 128,000 127,497
2/5/98......................................................... 5.24 15,562,000 15,483,325
2/26/98........................................................ 5.27 6,312,000 6,261,159
3/5/98......................................................... 5.25 1,144,000 1,133,650
3/19/98........................................................ 5.38 1,805,000 1,784,500
3/26/98........................................................ 5.28 55,753,000 55,074,681
4/2/98......................................................... 5.13 224,000 221,165
5/28/98........................................................ 5.57 27,007,000 26,422,159
7/23/98........................................................ 5.50 32,000,000 31,058,982
8/20/98........................................................ 5.56 10,000,000 9,662,163
9/17/98........................................................ 5.40 26,339,000 25,363,091
11/12/98....................................................... 5.61 16,897,000 16,108,966
--------------
TOTAL U.S. TREASURY BILLS (cost $235,964,222)..................... $ 235,964,222
==============
U.S. Treasury Notes--78.4%
- -----------------------------------------------------------------------------------------------------------------------------
5%, 1/31/98.................................................... 5.29% $165,000,000 $ 164,912,211
5.625%, 1/31/98................................................ 5.39 200,000,000 199,939,392
7.25%, 2/15/98................................................. 5.41 50,000,000 50,100,142
8.125%, 2/15/98................................................ 5.34 50,000,000 50,149,669
5.125%, 2/28/98................................................ 5.38 207,475,000 207,307,734
6.125%, 3/31/98................................................ 5.35 60,770,000 60,858,676
7.875%, 4/15/98................................................ 5.38 25,000,000 25,169,458
5.875%, 4/30/98................................................ 5.43 100,000,000 100,120,516
8.25%, 7/15/98................................................. 5.44 25,000,000 25,333,832
6%, 9/30/98.................................................... 5.47 60,000,000 60,189,379
--------------
TOTAL U.S. TREASURY NOTES (cost $944,081,009) .................... $ 944,081,009
==============
TOTAL INVESTMENTS (cost $1,180,045,231).................. 98.0% $1,180,045,231
====== ==============
CASH AND RECEIVABLES (NET)............................... 2.0% $ 23,902,498
====== ==============
NET ASSETS............................................... 100.0% $1,203,947,729
====== ==============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
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<TABLE>
<CAPTION>
Statement of Assets and Liabilities December 31, 1997
Cost Value
--------------- ----------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments. $1,180,045,231 $1,180,045,231
Cash................................................... 5,687,094
Interest receivable.................................... 18,860,945
Prepaid expenses and other assets...................... 73,763
--------------
1,204,667,033
--------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.......... 576,479
Accrued expenses and other liabilities................. 142,825
--------------
719,304
--------------
NET ASSETS..................................................................... $1,203,947,729
===============
REPRESENTED BY: Paid-in capital........................................ $1,204,140,307
Accumulated net realized gain (loss) on investments.... (192,578)
--------------
NET ASSETS .................................................................... $1,203,947,729
==============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized) 1,203,851,533
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
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<TABLE>
Statement of Operations Year Ended December 31, 1997
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income........................................ $64,484,272
EXPENSES: Management fee--Note 2(a).............................. $6,024,580
Shareholder servicing costs--Note 2(b)................. 2,218,569
Custodian fees......................................... 76,126
Trustees' fees and expenses--Note 2(c)................. 71,356
Registration fees...................................... 62,878
Prospectus and shareholders' reports................... 52,936
Professional fees...................................... 42,991
Miscellaneous.......................................... 10,009
----------
Total Expenses................................... 8,559,445
------------
INVESTMENT INCOME--NET......................................................... 55,924,827
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b).............................
(14,055)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $55,910,772
============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
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Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1997 December 31, 1996
------------------ ------------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 55,924,827 $ 57,433,241
Net realized gain (loss) on investments.............................. (14,055) (165,664)
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations.... 55,910,772 57,267,577
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net............................................... (55,924,827) (57,775,920)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 2,196,547,255 2,384,073,030
Dividends reinvested................................................. 52,673,880 54,349,594
Cost of shares redeemed.............................................. (2,332,113,265) (2,461,751,306)
-------------- --------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (82,892,130) (23,328,682)
-------------- --------------
Total Increase (Decrease) in Net Assets.......................... (82,906,185) (23,837,025)
NET ASSETS:
Beginning of Period.................................................. 1,286,853,914 1,310,690,939
--------------- --------------
End of Period........................................................ $ 1,203,947,729 $1,286,853,914
-============== ==============
</TABLE>
See notes to financial statements.
<PAGE>
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.
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------------------
1997 1996 1995 1994 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period . $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
Investment Operations:
Investment income--net................. .046 .046 .051 .033 .025
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net.. (.046) (.046) (.051) (.033) (.025)
------ ------ ------ ------ ------
Net asset value, end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.................. 4.74% 4.67% 5.19% 3.38% 2.56%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .71% .73% .69% .71% .65%
Ratio of net investment income
to average net assets............... 4.64% 4.55% 5.09% 3.29% 2.53%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. -- -- -- -- .02%
Net Assets, end of period (000's Omitted) $1,203,948 $1,286,854 $1,310,691 $1,450,739 $1,917,929
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasure Money Market Fund
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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. is 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 in securities 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 $189,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1997. If not
applied, $13,000 of the carryover expires in fiscal 2003, $153,000 expires in
fiscal 2004 and $23,000 expires in fiscal 2005.
At December 31, 1997, 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).
<PAGE>
Dreyfus 100% U.S. Treasure Money Market Fund
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NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 2--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management 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.
(b) Under the 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, 1997, the Fund was charged $1,428,766 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. During the period
ended December 31, 1997, the Fund was charged $550,203 pursuant to the transfer
agency agreement.
(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, 1997, 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 and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1997 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, 1997, 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.
/s/Ernst & Young LLP
New York, New York
January 30, 1998
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
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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, 1997 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.
<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. 071AR9712
