Dreyfus
100% U.S. Treasury
Money Market Fund
SEMIANNUAL REPORT June 30, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
7 Statement of Assets and Liabilities
8 Statement of Operations
9 Statement of Changes in Net Assets
10 Financial Highlights
11 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
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The Fund
Dreyfus 100% U.S. Treasury
Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus 100% U.S. Treasury
Money Market Fund, covering the six-month period from January 1, 1999 through
June 30, 1999. Inside, you'll find valuable information about how the fund was
managed during the period, including a discussion with senior portfolio manager,
Patricia A. Larkin.
After remaining relatively steady during the first quarter of 1999, yields on
money market securities generally rose in the second quarter in response to
expectations that the Federal Reserve Board would raise short-term interest
rates at their June meeting. On June 30, the Federal Reserve raised rates amid
stronger-than-expected global and domestic economic growth. Their objective was
to forestall a potential resurgence of inflationary pressures.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus 100% U.S. Treasury Money Market Fund
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
July 15, 1999
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DISCUSSION OF FUND PERFORMANCE
Patricia A. Larkin, Senior Portfolio Manager
How did Dreyfus 100% U.S. Treasury Money Market Fund perform during the period
For the six-month period ended June 30, 1999, Dreyfus 100% U.S. Treasury Money
Market Fund produced an annualized yield of 4.01% which, taking into account the
effect of compounding, the annualized effective yield was 4.09%.(1) The fund
provided a total return of 2.04%(2) compared to the Lipper U.S. Treasury Money
Market Funds category average total return of 2.00% for the same period.(3)
We attribute the fund's yield to the fact that we owned longer-term securities,
while maintaining an average dollar-weighted fund maturity of 90 days or less,
which enabled us to lock in higher returns in an environment characterized, for
all but the end of the period, by declining or stable interest rates.
What is the fund's investment approach?
There are many factors we consider in managing the fund. We closely monitor the
outlook for growth and inflation. We follow overseas developments for any
influence they may have on the domestic economy. The posture of the Federal
Reserve Board (the "Fed") is a key determinant in our decision on how best to
structure the fund.
In addition, we actively manage the average maturity of the fund in an attempt
to take advantage of expected interest rate changes based upon our economic
outlook. If we believe that interest rates will fall, we typically lengthen
average maturity to lock in the then-current rates. Conversely, in a rising rate
environment, we typically shorten maturities to be able to reinvest at
anticipated higher rates in the future.
The Fund
<PAGE 3>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
As a money market fund, the fund only buys securities rated in one of the two
highest rating categories for debt obligations, or of comparable credit quality.
The fund must also maintain an average dollar-weighted fund maturity of 90 days
or less and may buy only securities with remaining maturities of 13 months or
less.
What other factors influenced the fund's performance?
Last fall, in the wake of Asian market turmoil, the Open Market Committee of the
Fed cut short-term interest rates three times in an attempt to provide liquidity
and improve investor confidence. Since then, there have been concerns that
global and domestic factors might push the United States economy towards
unsustainable growth.
As of June 30, 1999, Asian economies appear to have stabilized. What's more, the
outlook for growth in the major industrialized nations has been improving. The
domestic economy continued to move ahead briskly, evidenced by a strong rebound
in manufacturing output that shows signs of gaining momentum. Consumer
confidence was at a 30-year high. Employment was strong, with hourly wages
rising. Despite concerns that overly rapid economic growth might lead to
destructive inflationary pressure, the Fed held interest rates steady through
all but the very end of the period. Because we managed the fund at a relatively
longer average maturity, investors have been able to benefit from stable rates
and the Fed's long held accommodative stance during the reporting period.
What is the fund's current strategy?
Throughout the reporting period, as the economy showed robust growth, bond and
money markets anticipated a tightening of monetary policy by the Fed. Such
tightening was signaled by Chairman Alan Greenspan's mid-May announcement of a
shift in policy towards a bias to increase rates. The bias changed in fact just
prior to the end of the
<PAGE 4>
reporting period, when the Fed raised the target Federal Funds rates by
one-quarter point to five percent with an accompanying return to a neutral
stance on future Federal Funds rate movement. An initial relief rally has been
replaced by a cautious "wait and see" market view.
Over the reporting period, the fund benefited from our commitment to a longer
maturity structure. When rates did not rise as quickly as markets expected,
longer maturities enhanced return. However, over the past few months, we have
taken a somewhat less aggressive stance, slowly reducing the average maturity of
our investments. In an uncertain market with the potential for further
tightening, we have adopted this approach, while still seeking opportunities to
capture additional yield as such opportunities arise.
July 15, 1999
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS
FLUCTUATE. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR
ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF
YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN
THE FUND.
(2) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS.
(3) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
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<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
June 30, 1999 (Unaudited)
Annualized
Yield on
Date of Principal
U.S. TREASURY BILLS--7.5% Purchase (%) Amount ($) Value ($)
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<S> <C> <C> <C>
7/22/1999 5.31 8,701,000 8,675,369
8/12/1999 4.55 7,331,000 7,292,427
8/26/1999 4.56 7,903,000 7,847,556
9/23/1999 4.69 1,775,000 1,755,788
12/9/1999 4.78 5,821,000 5,700,850
1/6/2000 4.48 14,763,000 14,429,843
2/3/2000 4.80 3,495,000 3,398,407
3/2/2000 4.69 13,818,000 13,396,216
3/30/2000 4.62 6,062,000 5,859,131
4/27/2000 4.75 13,589,000 13,072,802
5/25/2000 5.06 2,734,000 2,613,551
TOTAL U.S. TREASURY BILLS
(cost $84,041,940) 84,041,940
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U.S. TREASURY NOTES--89.8%
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6.375%, 7/15/1999 4.64 100,000,000 100,061,390
5.50%, 7/31/1999 4.47 360,000,000 360,368,251
5.00%, 8/15/1999 4.66 28,315,000 28,358,854
8.875%, 8/15/1999 4.57 125,000,000 125,508,250
5.875%, 8/31/1999 4.63 72,605,000 72,734,277
6.25%, 9/30/1999 4.73 108,188,000 108,423,511
6.375%, 9/30/1999 4.48 11,165,000 11,231,694
6.50%, 10/15/1999 4.58 8,032,000 8,061,606
6.25%, 10/31/1999 4.52 21,289,000 21,352,081
6.375%, 11/30/1999 5.02 75,000,000 75,799,428
5.875%, 3/31/2000 4.80 50,000,000 50,710,618
6.00%, 4/15/2000 4.67 25,000,000 25,117,905
6.00%, 6/30/2000 5.15 20,000,000 20,012,070
TOTAL U.S. TREASURY NOTES
(cost $1,007,739,935) 1,007,739,935
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TOTAL INVESTMENTS (cost $1,091,781,875) 97.3% 1,091,781,875
CASH AND RECEIVABLES ( NET) 2.7% 30,223,522
NET ASSETS 100.0% 1,122,005,397
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
Cost Value
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<S> <C> <C>
ASSETS ($):
Investments in securities--See Statement of
Investments 1,091,781,875 1,091,781,87
Cash 9,422,235
Interest receivable 21,202,278
Prepaid expenses and other assets 131,755
1,122,538,143
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 433,002
Accrued expenses 99,744
532,746
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NET ASSETS ($) 1,122,005,397
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 1,122,399,100
Accumulated net realized gain (loss) on investments (393,703)
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NET ASSETS ($) 1,122,005,397
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of
Beneficial Interest authorized) 1,122,110,326
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
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<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1999 (Unaudited)
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<S> <C>
INVESTMENT INCOME ($):
INTEREST INCOME 25,811,491
EXPENSES:
Management fee--Note 2(a) 2,754,750
Shareholder servicing costs--Note 2(b) 760,895
Custodian fees 42,151
Trustees' fees and expenses--Note 2(c) 41,285
Registration fees 36,300
Professional fees 24,194
Prospectus and shareholders' reports 17,670
Miscellaneous 908
TOTAL EXPENSES 3,678,153
INVESTMENT INCOME--NET 22,133,338
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NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($): (47,726)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 22,085,612
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998
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<S> <C> <C>
OPERATIONS ($):
Investment income--net 22,133,338 49,685,105
Net realized gain (loss) on investments (47,726) (153,399)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 22,085,612 49,531,706
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DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (22,133,338) (49,685,105)
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BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold 557,976,617 1,045,848,980
Dividends reinvested 21,096,477 47,140,240
Cost of shares redeemed (599,602,820) (1,154,200,701)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (20,529,726) (61,211,481)
TOTAL INCREASE (DECREASE) IN NET ASSETS (20,577,452) (61,364,880)
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NET ASSETS:
Beginning of Period 1,142,582,849 1,203,947,729
END OF PERIOD 1,122,005,397 1,142,582,849
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
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<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased
(or decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Six Months Ended
June 30, 1999 Year Ended December 31,
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(Unaudited) 1998 1997 1996 1995 1994
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<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .020 .045 .046 .046 .051 .033
Distributions:
Dividends from investment
income--net (.020) (.045) (.046) (.046) (.051) (.033)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) 4.05((+)) 4.55 4.74 4.67 5.19 3.38
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .71((+)) .75 .71 .71 .69 .71
Ratio of net investment income
to average net assets 4.02((+)) 4.46 4.64 4.55 5.09 3.29
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Net Assets, end of period
($ x 1,000) 1,122,005 1,142,583 1,203,948 1,286,854 1,310,691 1,450,739
((+)) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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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, as amended (the "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 (the "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 custody agreement, the fund received net earnings credits
of $6,221 during the period ended June 30, 1999 based on available cash balances
left on deposit. Income earned under this arrangement is included in interest
income.
The Fund
<PAGE 11>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(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 of 1986, as amended (the
" 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 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 $264,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1999. The
carryover does not include net realized securities losses from November 1, 1998
through December 31, 1998 which are treated for Federal tax purposes, as arising
in fiscal 1999. If not applied, $13,000 of the carryover expires in fiscal 2003,
$153,000 expires in fiscal 2004, $23,000 expires in fiscal 2005 and $75,000
expires in fiscal 2006.
At June 30, 1999, 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 12>
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, 1999, the fund was charged $716,986 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, 1999, the fund was charged $204,351 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.
The Fund
<PAGE 13>
For More Information
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
200 Park Avenue
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 071SA996
