Dreyfus
100% U.S. Treasury
Money Market Fund
Semi-Annual
Report
June 30, 1998
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
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Letter to Shareholders
Dear Shareholder:
We are pleased to report the performance for the Dreyfus 100% U.S. Treasury
Money Market Fund for the six-month period ended June 30, 1998. Your Fund
produced an annualized yield of 4.61% and, after taking into account the effect
of compounding, the annualized effective yield was 4.71%.*
The Economy and Market Environment
A major influence on the money market in the past few months has been
increased evidence of a slowdown in general economic activity. Overall, the
economy appears to be healthy, the job market has been strong, consumers seem to
be in a constructive frame of mind and inflation has remained at bay. However,
the fast pace of expansion that prevailed earlier in the year has clearly
cooled.
The problems in Japan and Southeast Asia are finally having some
repercussions in this country. Demand for our exports from that part of the
world has declined sharply. Furthermore, the flight to the dollar which has
resulted from the Asian problems has made the U.S. dollar very expensive for
those trading partners.
Lately, the virtual shutdown of U.S. production at General Motors plants, due
to the UAW strike in Flint, Michigan, has been another factor reducing the pace
of the economy.
Although growth in corporate profits has slowed in many sectors during the
past year, consensus estimates of future profit growth continue to be cut.
Profit margins had already begun to shrink under the weight of rising labor
costs, making companies' reported profits increasingly dependent on growth of
sales. Overall profits could thus prove quite vulnerable to a period of
significantly slower economic growth.
In view of this cooling trend, it has come as no surprise that the Federal
Reserve Board, though still watchful for signs of wage inflation, has not taken
any recent action to raise interest rates.
Thus, the money market is feeling the effects of economic cross-currents.
Factors tending to restrain interest rates include the demand for U.S.
instruments from foreign investors seeking a "safe haven" as well as the
prospect of the U.S. Government running a budget surplus, thus reducing the need
for Treasury borrowing. Yet, we believe that the continuing economic expansion,
albeit at a slower rate, helped to keep money market rates from going lower than
they did during the reporting period.
<PAGE>
Portfolio Focus
In this market environment, we maintained an average maturity in the
Portfolio somewhat longer than our peer group in order an effort to enhance
yield during the reporting period. Of course, we will look to vary our approach
should new factors in the market make this desirable.
Sincerely,
/s/ Patricia A. Larkin
Patricia A. Larkin
Senior Portfolio Manager
July 15, 1998
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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<TABLE>
<CAPTION>
Dreyfus 100% U.S. Treasury Money Market Fund
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Statement of Investments June 30, 1998 (Unaudited)
Annualized
Yield on
Date of Principal
U.S. Treasury Bills--9.1% Purchase Amount Value
- ------------------------------------------------------------------ ----------- ------------ ---------------
<S> <C> <C> <C>
7/23/98........................................................ 5.49% $ 33,056,000 $ 32,950,769
8/20/98........................................................ 5.54 10,667,000 10,589,104
9/17/98........................................................ 5.40 26,339,000 26,045,097
10/22/98....................................................... 5.22 1,397,000 1,374,636
11/12/98....................................................... 5.61 16,897,000 16,561,773
12/17/98....................................................... 5.26 763,000 744,625
2/4/99......................................................... 5.44 1,402,000 1,358,129
5/27/99........................................................ 5.40 8,724,000 8,314,554
6/24/99........................................................ 5.36 909,000 862,988
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TOTAL U.S. TREASURY BILLS (cost $98,801,675)...................... $ 98,801,675
===============
U.S. Treasury Notes--89.0%
- ------------------------------------------------------------------
8.25%, 7/15/98................................................. 5.26% $ 72,400,000 $ 72,477,648
5.25%, 7/31/98................................................. 5.05 19,072,000 19,073,397
6.25%, 7/31/98................................................. 5.03 101,925,000 102,017,012
5.875%, 8/15/98................................................ 5.15 145,000,000 145,092,322
9.25%, 8/15/98................................................. 5.04 50,000,000 50,240,420
4.75%, 8/31/98................................................. 5.11 100,000,000 99,910,258
6.125%, 8/31/98................................................ 5.19 114,250,000 114,391,681
4.75%, 9/30/98................................................. 5.28 25,000,000 24,960,718
6%, 9/30/98.................................................... 5.47 60,000,000 60,063,358
5.875%, 10/31/98............................................... 5.33 223,325,000 223,562,725
5.875%, 2/28/99................................................ 5.48 30,207,000 30,267,483
6.375%, 7/15/99................................................ 5.25 25,000,000 25,207,886
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TOTAL U.S. TREASURY NOTES (cost $967,264,908)..................... $ 967,264,908
===============
TOTAL INVESTMENTS (cost $1,066,066,583)................. 98.1% $ 1,066,066,583
======= ===============
CASH AND RECEIVABLES (NET)............................... 1.9% $ 20,497,826
======= ===============
NET ASSETS............................................... 100.0% $ 1,086,564,409
======= ===============
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
Dreyfus 100% U.S. Treasury Money Market Fund
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Statement of Assets and Liabilities June 30, 1998 (Unaudited)
Cost Value
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<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $1,066,066,583 $1,066,066,583
Cash............................................. 1,653,820
Interest receivable.............................. 19,416,118
Prepaid expenses and other assets................ 169,306
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1,087,305,827
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LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 600,392
Accrued expenses................................. 141,026
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741,418
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NET ASSETS....................................................... $1,086,564,409
==============
REPRESENTED BY: Paid-in capital................................. $1,086,776,232
Accumulated net realized gain (loss) on investments (211,823)
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NET ASSETS....................................................... $1,086,564,409
==============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest
authorized).................................................... 1,086,487,458
NET ASSET VALUE, offering and redemption price per share......... $1.00
=====
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
Dreyfus 100% U.S. Treasury Money Market Fund
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Statement of Operations Six Months Ended June 30, 1998 (Unaudited)
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $29,925,113
EXPENSES: Management fee--Note 2(a).................. $ 2,783,455
Shareholder servicing costs--Note 2(b)..... 1,303,033
Custodian fees............................. 46,457
Trustees' fees and expenses--Note 2(c)..... 33,453
Registration fees.......................... 32,896
Prospectus and shareholders' reports....... 20,846
Professional fees.......................... 17,358
Miscellaneous.............................. 7,836
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Total Expenses........................ 4,245,334
-----------
INVESTMENT INCOME--NET................................................... 25,679,779
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b)....................... (19,245)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $25,660,534
-----------
-----------
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
Dreyfus 100% U.S. Treasury Money Market Fund
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Statement of Changes in Net Assets
Six Months Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................. $ 25,679,779 $ 55,924,827
Net realized gain (loss) on investments................................ (19,245) (14,055)
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations..... 25,660,534 55,910,772
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DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................. (25,679,779) (55,924,827)
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BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold.......................................... 553,668,050 2,196,547,255
Dividends reinvested .................................................. 24,256,855 52,673,880
Cost of shares redeemed................................................ (695,288,980) (2,332,113,265)
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Increase (Decrease) in Net Assets from Beneficial Interest
Transactions...................................................... (117,364,075) (82,892,130)
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Total Increase (Decrease) in Net Assets.......................... (117,383,320) (82,906,185)
NET ASSETS:
Beginning of Period.................................................... 1,203,947,729 1,286,853,914
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End of Period.......................................................... $1,086,564,409 $1,203,947,729
-------------- --------------
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</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
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 Ended Year Ended December 31,
June 30, 1998 -------------------------------------------------
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
---------------- ----- ----- ----- ----- -----
<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..................... .023 .046 .046 .051 .033 .025
----- ----- ----- ----- ----- -----
Distributions:
Dividends from investment income--net...... (.023) (.046) (.046) (.051) (.033) (.025)
----- ----- ----- ----- ----- -----
Net asset value, end of period............. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
TOTAL INVESTMENT RETURN....................... 4.66%* 4.74% 4.67% 5.19% 3.38% 2.56%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.... .76%* .71% .73% .69% .71% .65%
Ratio of net investment income to average
net assets.............................. 4.61%* 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).. $1,086,564 $1,203,948 $1,286,854 $1,310,691 $1,450,739 $1,917,929
<FN>
- ----------
* Annualized.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
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. 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.
Under the terms of the custodian agreement, the Fund received net earnings
credits of $13,119 during the period ended June 30, 1998 based on available cash
balances left on deposit. Income earned under this arrangement is included in
interest income.
(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 June 30, 1998, 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. Treasury Money Market Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (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 June
30, 1998, the Fund was charged $922,440 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 June 30, 1998, the Fund was charged $250,241 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
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. 071SA986
