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.
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 period ended December 31, 1998. Your Fund
produced a yield of 4.46% and, after taking into account the effect of
compounding, the effective yield was 4.55%.*
ECONOMIC REVIEW
During 1998, the main regions of the world had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board to contemplate a rise in interest rates early in the
year, but world economic weakness generated powerful enough disinflationary
forces that the Fed acted instead to ease credit beginning in September. After
many years of subpar economic growth, continental Europe moved into a sustained
economic expansion. The overall European economy benefited as interest rates in
peripheral countries such as Spain and Italy fell, approaching the lower levels
established by Germany, on the eve of currency unification. Unlike the U.S.,
Europe has substantial excess capacity of productive plant and labor. In Asia,
weak economies were pervasive as a result of a financial crisis. The Latin
American economies weakened in turn as the financial stresses spread throughout
that region. On balance, there was a substantial weakening of the world economy
over the course of 1998 moderated mainly by the American consumer's role as
"spender of last resort."
A main influence on the U.S. economy during the year was the foreign financial
crisis and consequent cooling of the world economy. The positive effects hit
first. Actual inflation and expected inflation dropped, causing a decline in
long-term Treasury bond yields and mortgage rates. This caused a boom in
housing. The fall in inflation left more of the growth in consumer income with
which to buy goods and services. Thus, consumers benefited from a combination of
good growth in income after inflation, a strong labor market, and increases in
the prices of assets they owned, including bonds, stocks and real estate. In a
sense, 1998 was a year of disinflationary boom in the U.S., as above-trend
economic growth coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis in 1998 from Japan,
emerging market countries and overextended financial institutions. Excess
capacity persists in many worldwide industries after years of high capital
spending followed by the onset of a worldwide weakening in demand. Fortunately,
the U.S. has led the world in making the transition away from the old
manufacturing industries to the new growth industries, such as biotechnology,
software, computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relaxed.
MARKET ENVIRONMENT/PORTFOLIO FOCUS
The economic forces described above drove down interest rates in late summer
and early fall. Later in the year there was a modest increase in rates. One of
its effects was to change the yield curve from one that had been negative to a
positive, sloping structure. In this normal configuration, longer-term yields
exceeded those of the shorter-term instruments.
A flight to safety by global investors was the force that drove down
longer-term U.S. yields last fall. In recent weeks, investors appear to have
become more confident about the economic outlook. One factor has been the rise
in interest rates in Japan, which brought about some repatriation of investment
funds to that country. In addition, the introduction of the Euro currency at the
start of the new year, which was well received, put some downward pressure on
the U.S. dollar.
Investor fears of worldwide financial turmoil seemed to have receded recently.
Currently, prices and rates in the money market appear to be reacting more to
underlying economic forces than to such market psychology factors. This, of
course, can be constructive for investors in short-term money market
instruments.
The fact that the Federal Reserve Open Market Committee lowered interest rates
three times between late September and year-end has been a strong
confidence-building factor in the markets. Currently, we expect the Fed to
remain in a "wait and see" mode for a while.
During the reporting period, we lengthened the average portfolio maturity, as
we deemed appropriate in order to take advantage of possible declining interest
rates. We will continue to monitor the market, including interest rates, in
seeking investment opportunities for the Fund.
Sincerely,
[Patricia A. Larkin signature]
Patricia A. Larkin
Senior Portfolio Manager
January 13, 1999
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested monthly
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998
Annualized
Yield on
Date of Principal
U.S. Treasury Bills--27.6% Purchase Amount Value
- ---------------------------------------------------------------------------- _________ _________________ _________________
<S> <C> <C> <C>
1/14/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.71% $ 449,000 $ 448,403
1/21/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.54 100,106,000 99,855,540
2/4/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.44 1,402,000 1,395,158
2/11/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.50 129,447,000 128,789,989
3/4/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.43 4,025,000 3,994,638
3/25/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.35 34,632,000 34,287,813
4/1/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.69 19,406,000 19,184,286
5/27/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.40 8,724,000 8,542,851
6/3/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.42 1,262,000 1,238,830
6/24/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.33 4,395,000 4,287,321
7/22/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.32 10,090,000 9,803,866
12/9/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.60 3,171,000 3,038,126
_______________
TOTAL U.S. TREASURY BILLS (cost $314,866,821). . . . . . . . . . . . . . . . $ 314,866,821
_______________
U.S. Treasury Notes--70.4%
- ----------------------------------------------
5%, 1/31/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.12% $ 1,193,000 $ 1,192,733
5.875%, 1/31/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.33 125,000,000 125,136,297
5%, 2/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.47 90,000,000 90,034,667
8.875%, 2/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.53 78,000,000 78,394,255
5.875%, 2/28/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.98 210,780,000 211,053,120
6.25%, 3/31/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.25 52,143,000 52,385,727
6.375%, 4/30/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.17 13,645,000 13,694,620
6.50%, 4/30/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.43 72,000,000 72,236,577
6.25%, 5/31/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.55 76,820,000 77,319,752
6.375%, 7/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.25 25,000,000 25,106,961
5.875%, 7/31/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.47 50,000,000 50,339,042
6%, 10/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.61 8,032,000 8,112,160
_______________
TOTAL U.S. TREASURY NOTES (cost $805,005,911). . . . . . . . . . . . . . . . $ 805,005,911
_______________
TOTAL INVESTMENTS (cost $1,119,872,732). . . . . . . . . . . . . . 98.0% $1,119,872,732
_______ _______________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . 2.0% $ 22,710,117
_______ _______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $1,142,582,849
_______ _______________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998
Cost Value
_______________ _______________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $1,119,872,732 $1,119,872,732
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 7,567,955
Interest receivable . . . . . . . . . . . . . . . . . . . 15,881,175
Prepaid expenses and other assets . . . . . . . . . . . . 93,175
_______________
1,143,415,037
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 530,667
Accrued expenses . . . . . . . . . . . . . . . . . . . . 301,521
_______________
832,188
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,142,582,849
_______________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $1,142,928,826
Accumulated net realized gain (loss) on investments . . . (345,977)
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,142,582,849
_______________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED) . . . . . . 1,142,640,052
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $1.00
______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $58,041,612
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . . . . . $ 5,564,881
Shareholder servicing costs--Note 2(b) . . . . . . . . . 2,465,661
Custodian fees . . . . . . . . . . . . . . . . . . . . . 81,133
Trustees' fees and expenses--Note 2(c) . . . . . . . . . 66,923
Prospectus and shareholders' reports . . . . . . . . . . 65,561
Registration fees . . . . . . . . . . . . . . . . . . . . 61,804
Professional fees . . . . . . . . . . . . . . . . . . . . 33,980
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 16,564
____________
Total Expenses . . . . . . . . . . . . . . . . . . . . 8,356,507
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,685,105
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) . . . . . . . . . . . . . . . . . . . . (153,399)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $49,531,706
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
December 31, 1998 December 31, 1997
__________________ __________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49,685,105 $ 55,924,827
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . (153,399) (14,055)
_______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . 49,531,706 55,910,772
_______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . (49,685,105) (55,924,827)
_______________ ______________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . 1,045,848,980 2,196,547,255
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,140,240 52,673,880
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,154,200,701) (2,332,113,265)
_______________ ______________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . (61,211,481) (82,892,130)
_______________ ______________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . (61,364,880) (82,906,185)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,203,947,729 1,286,853,914
_______________ ______________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,142,582,849 $1,203,947,729
_______________ ______________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<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 . . . . . . . . . . . . . . . . . .045 .046 .046 .051 .033
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.045) (.046) (.046) (.051) (.033)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . 4.55% 4.74% 4.67% 5.19% 3.38%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .75% .71% .73% .69% .71%
Ratio of net investment income to average net assets . . 4.46% 4.64% 4.55% 5.09% 3.29%
Net Assets, end of period (000's Omitted) . . . . . . . . $1,142,583 $1,203,948 $1,286,854 $1,310,691 $1,450,739
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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, 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 $20,346 during the period ended December 31, 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 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, 1998. 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 December 31, 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).
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.
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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, 1998, the Fund was charged $1,468,424 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, 1998, the Fund was charged $506,254 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.
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, 1998, 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, 1998 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, 1998, 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.
New York, New York
February 5, 1999
IMPORTANT TAX INFORMATION (UNAUDITED)
For State individual income tax purposes, the Fund hereby designates 100% of
the ordinary income dividends paid during its fiscal year ended December 31,
1998 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.
[reg.tm logo]
(reg.tm)
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. 071AR9812
100% U.S. Treasury
Money Market
Fund
Annual Report
December 31, 1998
