File No. 33-00823
811-04430
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. [_]
Post-Effective Amendment No. 22 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 22 [X]
(Check appropriate box or boxes.)
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
(Exact Name of Registrant as Specified in Charter)
c/o The Dreyfus Corporation
200 Park Avenue, New York, New York 10166
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (212) 922-6000
Mark N. Jacobs, Esq.
200 Park Avenue
New York, New York 10166
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box)
immediately upon filing pursuant to paragraph (b)
----
X on May 1, 1999 pursuant to paragraph (b)
----
60 days after filing pursuant to paragraph (a)(1)
----
on (DATE} pursuant to paragraph (a)(1)
----
75 days after filing pursuant to paragraph (a)(2)
----
on (DATE) pursuant to paragraph (a)(2) of Rule 485
----
If appropriate, check the following box:
this post-effective amendment designates a new effective date
for a previously filed post-effective amendment.
----
<PAGE>
DREYFUS
U.S. TREASURY
FUNDS
Investing in U.S. Treasury securities for current income with the preservation
of capital and, for the Money Market Fund only, the maintenance of liquidity
PROSPECTUS May 1, 1999
As with all mutual funds, the Securities and Exchange Commission has not
approved or disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal offense.
<PAGE>
CONTENTS
THE FUNDS
- ------------------------------------------------------
Each fund's 1 Introduction
investment approach,
risks, performance, 2 Goal/Approach
expenses and related
information 4 Main Risks
5 Past Performance
9 Expenses
13 Management
14 Financial Highlights
YOUR INVESTMENT
- --------------------------------------------------------------------
Information 18 Account Policies
for managing your
fund account 21 Distributions and Taxes
22 Services for Fund Investors
24 Instructions for Regular Accounts
26 Instructions for IRAs
FOR MORE INFORMATION
- -------------------------------------------------------------------------------
Where to learn more Back Cover
about these other
Dreyfus funds
<PAGE>
THE FUNDS
DREYFUS 100% U.S. TREASURY
MONEY MARKET FUND
- ------------------------------
Ticker Symbol: DUSXX
DREYFUS U.S. TREASURY SHORT TERM FUND
- -------------------------------------
Ticker Symbol: DRTSX
DREYFUS U.S. TREASURY INTERMEDIATE TERM FUND
- --------------------------------------------
Ticker Symbol: DRGIX
DREYFUS U.S. TREASURY LONG TERM FUND
- ------------------------------------
Ticker Symbol: DRGBX
This combined prospectus has been prepared for your convenience so that you can
consider four investment choices in one document. Each fund is a separate entity
with a separate investment portfolio. The operations and results of a fund are
unrelated to those of each other fund. The funds differ in their average
portfolio maturity, which affects their level of income and degree of share
price fluctuation.
Each fund seeks as high a level of current income as is consistent with the
preservation of capital and, for the Money Market Fund only, the maintenance of
liquidity. To pursue this goal, each fund invests primarily, and in the case of
the Money Market Fund, all of its assets, in U.S. Treasury securities.
INFORMATION ON EACH FUND'S RECENT PERFORMANCE CAN BE FOUND IN ITS CURRENT
ANNUAL/SEMIANNUAL REPORT (SEE BACK COVER).
Introduction
<PAGE>
DREYFUS U.S TREASURY FUNDS
GOAL/APPROACH
DREYFUS 100% U.S. TREASURY FUND
THE MONEY MARKET FUND seeks to maintain a stable share price of $1.00. It
invests only in U.S. Treasury securities. As a money market fund, it is subject
to strict federal requirements and must maintain an average dollar-weighted
portfolio maturity of 90 days or less and buy individual securities that have
remaining maturities of 13 months or less.
DREYFUS U.S. TREASURY SHORT TERM FUND
THE SHORT TERM FUND seeks a higher level of current income than the Money Market
Fund, and greater price stability than the Intermediate Term Fund. It invests
primarily in U.S. Treasury securities, but also may invest in other securities
issued or guaranteed by the U.S. government or its agencies or instrumentalities
and enter into repurchase agreements. The dollar-weighted average maturity of
its portfolio is expected to range between two and three years.
Concepts to understand
U.S. TREASURY SECURITIES: negotiable debt obligations of the U.S. government,
secured by its full faith and credit and issued at various interest rates and
maturities. The income from U.S. Treasury securities is exempt from state and
local, but not federal, taxes.
REPURCHASE AGREEMENT: agreement between a seller and a fund as buyer whereby the
seller agrees to repurchase a security at an agreed upon time and price.
Dividends and distributions attributable to interest from repurchase agreements
may be subject to state and local taxes.
<PAGE>
DREYFUS U.S. TREASURY INTERMEDIATE TERM FUND
THE INTERMEDIATE TERM FUND seeks a higher level of current income than the Short
Term Fund, and greater price stability than the Long Term Fund. It invests
primarily in U.S. Treasury securities, but also may invest in other securities
issued or guaranteed by the U.S. government or its agencies or
instrumentalities, repurchase agreements, and options and futures. The
dollar-weighted average maturity of its portfolio is expected to range between
three and ten years.
DREYFUS U.S. TREASURY LONG TERM FUND
THE LONG TERM FUND seeks a higher level of current income than the Intermediate
Term Fund. Its share price is expected to fluctuate more than that of the
Intermediate Term Fund. It invests primarily in U.S. Treasury securities, but
also may invest in other securities issued or guaranteed by the U.S. government
or its agencies or instrumentalities, repurchase agreements, and options and
futures. The dollar-weighted average maturity of its portfolio is expected to
exceed ten years.
Concepts to understand
AVERAGE WEIGHTED MATURITY: the length of time, in days or years, until the
securities held by a fund, on average, will mature, or be redeemed by its
issuer. The average maturity is weighted according to the dollar amounts
invested in the various securities in a fund. In general, the longer a fund's
average weighted maturity, the more its share price will fluctuate in response
to changing interest rates.
<PAGE>
MAIN RISKS
Prices of bonds tend to move inversely with changes in interest rates. While a
rise in rates may allow a fund to invest for higher yields, the most immediate
effect is usually a drop in bond prices, and therefore in the fund's share price
as well. As a result, the value of your investment in a fund could go up and
down, which means that you could lose money. While the Money Market Fund has
maintained a constant share price of $1.00 since inception, and will continue to
try to do so, a sharp rise in interest rates could reduce the income level
and/or share price of this fund, as well as the other funds.
A security backed by the U.S. Treasury or the full faith and credit of the
United States is guaranteed only as to timely payment of interest and principal
when held to maturity. Neither the market value of such securities nor the
fund's share price is guaranteed.
An investment in any fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Repurchase agreements, in which the Short Term, Intermediate Term and Long Term
funds may enter, involve the risk of a default or insolvency of the other party
to the agreement, including possible delays or restrictions upon a fund's
ability to dispose of the underlying securities.
Concepts to understand
Each of the Intermediate Term Fund and Long Term Fund may invest in certain
derivatives, such as options and futures. Derivatives can be illiquid and highly
sensitive to changes in their underlying security, interest rate or index, and
as a result can be highly volatile. A small investment in certain derivatives
could have a potentially large impact on the fund's performance.
Each of the Intermediate Term Fund and Long Term Fund may lend its portfolio
securities to brokers, dealers and other financial institutions, which could
subject the fund to risk of loss if the institution breaches it agreement with
the fund.
<PAGE>
PAST PERFORMANCE
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
The two tables below show the fund's annual returns and long-term performance.
The first table shows you how the fund's performance has varied from year to
year. The second averages the fund's performance over time. Both tables assume
reinvestment of dividends and distributions. As with all mutual funds, the past
is not a prediction of the future.
- --------------------------------------------------------------------------------
Year-by-year total return AS OF 12/31 EACH YEAR (%)
BEST QUARTER: Q2 '89 +2.07%
WORST QUARTER: Q2 '93 +0.61%
The fund's 7-day yield on 12/31/98 was 4.06%. For the fund's current yield, call
toll-free 1-800-645-6561.
- --------------------------------------------------------------------------------
Average annual total return AS OF 12/31/98
1 Year 5 Years 10 Years
- --------------------------------------------------------------------------------
4.55% 4.66% 5.09%
What these funds are -- and aren't
These funds are mutual funds: pooled investments that are professionally managed
and give you the opportunity to participate in financial markets. They strive to
reach their stated goals, although as with all mutual funds, they cannot offer
guaranteed results.
An investment in these funds is not a bank deposit. It is not insured or
guaranteed by the FDIC or any other government agency. It is not a complete
investment program. You could lose money in these funds, but you also have the
potential to make money.
<PAGE>
PAST PERFORMANCE (CONTINUED)
DREYFUS U.S. TREASURY SHORT TERM FUND
The two tables below show the fund's annual returns and long-term performance.
The first table shows you how the fund's performance has varied from year to
year. The second compares the fund's performance over time to that of the
Merrill Lynch Governments, U.S. Treasury, Short-Term Index. Both tables assume
reinvestment of dividends and distributions. As with all mutual funds, the past
is not a prediction of the future.
--------------------------------------------------------
Year-by-year total return AS OF 12/31 EACH YEAR (%)
BEST QUARTER: Q2 '89 +6.92%
WORST QUARTER: Q1 '90 -1.20%
--------------------------------------------------------
Average annual total return AS OF 12/31/98
1 Year 5 Years 10 Years
---------------------------------------------------------
FUND 6.14% 5.41% 7.27%
MERRILL LYNCH
GOVERNMENTS,
U.S. TREASURY,
SHORT-TERM INDEX 7.00% 5.98% 7.36%
<PAGE>
DREYFUS U.S. TREASURY INTERMEDIATE TERM FUND
The two tables below show the fund's annual returns and long-term performance.
The first table shows you how the fund's performance has varied from year to
year. The second compares the fund's performance over time to that of the
Merrill Lynch Governments, U.S. Treasury, Intermediate-Term Index. Both tables
assume reinvestment of dividends and distributions. As with all mutual funds,
the past is not a prediction of the future.
--------------------------------------------------------
Year-by-year total return AS OF 12/31 EACH YEAR (%)
BEST QUARTER: Q2 '89 +7.34%
WORST QUARTER: Q1 '94 -2.81%
--------------------------------------------------------
Average annual total return AS OF 12/31/98
1 Year 5 Years 10 Years
--------------------------------------------------------
FUND 7.61% 5.83% 8.36%
MERRILL LYNCH
GOVERNMENTS,
U.S. TREASURY,
INTERMEDIATE-TERM
INDEX 8.63% 6.49% 8.33%
<PAGE>
DREYFUS U.S. TREASURY LONG TERM FUND
The two tables below show the fund's annual returns and long-term performance.
The first table shows you how the fund's performance has varied from year to
year. The second compares the performance over time to that of the Merrill Lynch
Governments, U.S. Treasury, Long-Term Index. Both tables assume reinvestment of
dividends and distributions. As with all mutual funds, the past is not a
prediction of the future.
--------------------------------------------------------
Year-by-year total return AS OF 12/31 EACH YEAR (%)
BEST QUARTER: Q2 '95 +9.96%
WORST QUARTER: Q1 '94 -5.40%
--------------------------------------------------------
Average annual total return AS OF 12/31/98
1 Year 5 Years 10 Years
--------------------------------------------------------
FUND 10.77% 7.20% 10.08%
MERRILL LYNCH
GOVERNMENTS,
U.S. TREASURY,
LONG-TERM
INDEX 13.55% 9.34% 11.48%
<PAGE>
EXPENSES
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
As an investor, you pay certain fees and expenses in connection with the fund,
which are described in the following tables. Annual fund operating expenses are
paid out of fund assets, so their effect is included in the share price. The
fund has no sales charge (load) or 12b-1 distribution fees.
- -------------------------------------------------------------------------------
Fee table
ANNUAL FUND OPERATING EXPENSES
% OF AVERAGE DAILY NET ASSETS
Management fees 0.50%
Shareholder services fee 0.13%
Other expenses 0.12%
- --------------------------------------------------------------------------------
TOTAL 0.75%
- --------------------------------------------------------------------------------
Expense example
1 Year 3 Years 5 Years 10 Years
- --------------------------------------------------------------------------------
$77 $240 $417 $930
This example shows what you could pay in expenses over
time. It uses the same hypothetical conditions other
funds use in their prospectuses: $10,000 initial
investment, 5% total return each year and no changes in
expenses. The figures shown would be the same whether
you sold your shares at the end of a period or kept
them. Because actual return and expenses will be
different, the example is for comparison only.
Concepts to understand
MANAGEMENT FEE: the fee paid to the investment adviser for managing the fund's
portfolio and assisting in all aspects of the fund's operations.
SHAREHOLDER SERVICES FEE: a fee of up to 0.25% used to reimburse Dreyfus Service
Corporation for shareholder account service and maintenance.
OTHER EXPENSES: fees paid by the fund for miscellaneous items such as Transfer
agency, custody, professional and registration fees.
EXPENSES (CONTINUED)
DREYFUS U.S. TREASURY SHORT TERM FUND
As an investor, you pay certain fees and expenses in connection with the fund,
which are described in the following tables. Annual fund operating expenses are
paid out of fund assets, so their effect is included in the share price. The
fund has no sales charge (load) or 12b-1 distribution fees.
--------------------------------------------------------
Fee table
ANNUAL FUND OPERATING EXPENSES
% OF AVERAGE DAILY NET ASSETS
Management fees 0.60%
Shareholder services fee 0.15%
Other expenses 0.18%
- -------------------------------------------------------------------------------
TOTAL 0.93%
- -------------------------------------------------------------------------------
Expense example
1 Year 3 Years 5 Years 10 Years
--------------------------------------------------------
$95 $296 $515 $1,143
This example shows what you could pay in expenses over
time. It uses the same hypothetical conditions other
funds use in their prospectuses: $10,000 initial
investment, 5% total return each year and no changes in
expenses. The figures shown would be the same whether
you sold your shares at the end of a period or kept
them. Because actual return and expenses will be
different, the example is for comparison only.
Concepts to understand
MANAGEMENT FEE: the fee paid to the investment adviser for managing the fund's
portfolio and assisting in all aspects of the fund's operations.
For the fiscal year ended December 31, 1998, Dreyfus waived a portion of its fee
so that the effective management fee paid by the fund was 0.46%, reducing total
expenses from 0.93% to 0.79%. This waiver is voluntary and may be terminated at
any time.
SHAREHOLDER SERVICES FEE: a fee of up to 0.25% used to reimburse Dreyfus Service
Corporation for shareholder account service and maintenance.
OTHER EXPENSES: fees paid by the fund for miscellaneous items such as Transfer
agency, custody, professional and registration fees.
<PAGE>
DREYFUS U.S. TREASURY INTERMEDIATE TERM FUND
As an investor, you pay certain fees and expenses in connection with the fund,
which are described in the following tables. Annual fund operating expenses are
paid out of fund assets, so their effect is included in the share price. The
fund has no sales charge (load) or 12b-1 distribution fees.
- --------------------------------------------------------------------------------
Fee table
ANNUAL FUND OPERATING EXPENSES
% OF AVERAGE DAILY NET ASSETS
Management fees 0.60%
Shareholder services fee 0.20%
Other expenses 0.17%
- --------------------------------------------------------------------------------
TOTAL 0.97%
- --------------------------------------------------------------------------------
Expense example
1 Year 3 Years 5 Years 10 Years
- --------------------------------------------------------------------------------
$99 $309 $536 $1,190
This example shows what you could pay in expenses over
time. It uses the same hypothetical conditions other
funds use in their prospectuses: $10,000 initial
investment, 5% total return each year and no changes in
expenses. The figures shown would be the same whether
you sold your shares at the end of a period or kept
them. Because actual return and expenses will be
different, the example is for comparison only.
Concepts to understand
MANAGEMENT FEE: the fee paid to the investment adviser for managing the fund's
portfolio and assisting in all aspects of the fund's operations.
For the fiscal year ended December 31, 1998, Dreyfus waived a portion of its
fee so that the effective management fee paid by the fund was 0.43%, reducing
total expenses from 0.97% to 0.80%. This waiver is voluntary and may be
terminated at any time.
SHAREHOLDER SERVICES FEE: a fee of up to 0.25% used to reimburse Dreyfus Service
Corporation for shareholder account service and maintenance.
OTHER EXPENSES: fees paid by the Fund for miscellaneous items such as Transfer
agency, custody, professional and registration fees.
<PAGE>
EXPENSES (CONTINUED)
DREYFUS U.S. TREASURY LONG TERM FUND
As an investor, you pay certain fees and expenses in connection with the fund,
which are described in the following tables. Annual fund operating expenses are
paid out of fund assets, so their effect is included in the share price. The
fund has no sales charge (load) or 12b-1 distribution fees.
- --------------------------------------------------------------------------------
Fee table
ANNUAL FUND OPERATING EXPENSES
% OF AVERAGE DAILY NET ASSETS
Management fees 0.60%
Shareholder services fee 0.22%
Other expenses 0.19%
- --------------------------------------------------------------------------------
TOTAL 1.01%
- --------------------------------------------------------------------------------
Expense example
1 Year 3 Years 5 Years 10 Years
- --------------------------------------------------------------------------------
$103 $322 $558 $1,236
This example shows what you could pay in expenses over
time. It uses the same hypothetical conditions other
funds use in their prospectuses: $10,000 initial
investment, 5% total return each year and no changes in
expenses. The figures shown would be the same whether
you sold your shares at the end of a period or kept
them. Because actual return and expenses will be
different, the example is for comparison only.
Concepts to understand
MANAGEMENT FEE: the fee paid to the investment adviser for managing the fund's
portfolio and assisting in all aspects of the fund's operations.
For the fiscal year ended December 31, 1998, Dreyfus waived a portion of its fee
so that the effective management fee paid by the fund was 0.39%, reducing total
expenses from 1.01% to 0.80%. This waiver is voluntary and may be terminated at
any time.
SHAREHOLDER SERVICES FEE: a fee of up to 0.25% used to reimburse Dreyfus Service
Corporation for shareholder account service and maintenance.
<PAGE>
MANAGEMENT
The investment adviser for each fund is The Dreyfus Corporation, 200 Park
Avenue, New York, New York 10166. Founded in 1947, Dreyfus manages one of the
nation's leading mutual fund complexes, with more than $121 billion in more than
160 mutual fund portfolios. Dreyfus is the primary mutual fund business of
Mellon Bank Corporation, a broad-based financial services company with a bank at
its core. With more than $389 billion of assets under management and $1.9
trillion of assets under administration and custody, Mellon provides a full
range of banking, investment and trust products and services to individuals,
businesses and institutions. Its mutual fund companies place Mellon as the
leading bank manager of mutual funds. Mellon is headquartered in Pittsburgh,
Pennsylvania.
Management philosophy
The Dreyfus asset management philosophy is based on the belief that discipline
and consistency are important to investment success. For each fund, Dreyfus
seeks to establish clear guidelines for portfolio management and to be
systematic in making decisions. This approach is designed to provide each fund
with a distinct, stable identity.
Dreyfus manages each fund by making investment decisions based on the fund's
investment objective, policies and restrictions.
Concepts to understand
YEAR 2000 ISSUES: these funds could be adversely affected if the computer
systems used by Dreyfus and the funds' other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
Dreyfus 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 a fund invests may be
adversely affected by year 2000-related problems. This could have an impact on
the value of a fund's investments and its yield and share price.
<PAGE>
FINANCIAL HIGHLIGHTS
The following tables describe each fund's 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 financial highlights have been independently
audited by Ernst & Young LLP, whose report, along with the fund's financial
statements, is included in the annual report.
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------
PER-SHARE DATA ($)
<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 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
($ x 1,000) 1,142,583 1,203,948 1,286,854 1,310,691 1,450,739
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DREYFUS U.S. TREASURY SHORT TERM FUND
YEAR ENDED DECEMBER 31,
1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA ($)
Net asset value, beginning of period 14.77 14.82 15.14 14.55 15.75
Investment operations:
Investment income -- net .87 .93 .90 1.03 1.15
Net realized and unrealized gain
(loss) on investments .01 (.05) (.32) .59 (1.20)
Total from investment operations .88 .88 .58 1.62 (.05)
Distributions:
Dividends from investment
income -- net (.87) (.93) (.90) (1.03) (1.15)
Net asset value, end of period 14.78 14.77 14.82 15.14 14.55
Total return (%) 6.14 6.12 4.07 11.38 (.33)
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to
average net assets (%) .79 .70 .70 .65 .35
Ratio of net investment income to
average net assets (%) 5.91 6.29 6.04 6.90 7.61
Decrease reflected in above
expense ratios due to actions
by Dreyfus (%) .14 .31 .27 .29 .59
Portfolio turnover rate (%) 773.31 563.77 539.38 480.44 499.11
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ x 1,000) 185,908 195,398 187,826 188,726 172,556
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
DREYFUS U.S. TREASURY INTERMEDIATE TERM FUND
YEAR ENDED DECEMBER 31,
1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------
PER-SHARE DATA ($)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 12.70 12.69 13.13 12.16 13.60
Investment operations:
Investment income -- net .79 .91 .82 .89 .91
Net realized and unrealized gain
(loss) on investments .15 .01 (.44) .97 (1.44)
Total from investment operations .95 .92 .38 1.86 (.53)
Distributions:
Dividends from investment
income -- net (.79) (.91) (.82) (.89) (.91)
Net asset value, end of period 12.85 12.70 12.69 13.13 12.16
Total return (%) 7.61 7.63 3.08 15.77 (3.97)
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to
average net assets (%) .80 .80 .80 .84 .89
Ratio of net investment income to
average net assets (%) 6.19 7.30 6.41 7.02 7.15
Decrease reflected in above
expense ratios due to
actions by Dreyfus (%) .17 .17 .13 .02 --
Portfolio turnover rate (%) 957.80 643.20 728.01 492.76 696.65
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) 181,520 188,347 192,296 196,970 185,261
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DREYFUS U.S. TREASURY LONG TERM FUND
YEAR ENDED DECEMBER 31,
1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------
PER-SHARE DATA ($)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 15.30 14.61 15.51 13.26 15.68
Investment operations:
Investment income -- net .80 .93 .98 .96 1.01
Net realized and unrealized gain
(loss) on investments .81 .69 (.89) 2.25 (2.42)
Total from investment operations 1.61 1.62 .09 3.21 (1.41)
Distributions:
Dividends from investment
income -- net (.80) (.93) (.99) (.96) (1.01)
Net asset value, end of period 16.11 15.30 14.61 15.51 13.26
Total return (%) 10.77 11.69 .87 24.91 (9.18)
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to
average net assets (%) .80 .80 .80 .87 .98
Ratio of net investment income
to average net assets (%) 5.10 6.48 6.74 6.69 7.08
Decrease reflected in above
expense ratios due to
actions by Dreyfus (%) .21 .24 .19 .05 --
Portfolio turnover rate (%) 1,181.48 905.99 765.13 634.38 1,213.04
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ x 1,000) 141,885 134,692 135,368 146,445 123,403
</TABLE>
<PAGE>
YOUR INVESTMENT
ACCOUNT POLICIES
BUYING SHARES
YOU PAY NO SALES CHARGES to invest in these funds. Your price for fund shares is
the net asset value per share (NAV), which is generally calculated as of the
close of trading on the New York Stock Exchange, usually 4:00 p.m. Eastern time,
every day the exchange is open. Your order will be priced at the next NAV
calculated after your order is accepted by the fund's transfer agent or other
authorized entity. Dreyfus 100% U.S. Treasury Money Market Fund uses the
amortized cost method of valuing its securities. The other funds value their
U.S. Treasury securities by averaging the most recent bid and asked prices;
their other investments are valued at fair value by an independent pricing
service approved by the fund's board.
- --------------------------------------------------------
Minimum investments
Initial Additional
--------------------------------------------------------
REGULAR ACCOUNTS $2,500 $100
$500 FOR
TELETRANSFER
INVESTMENTS
DREYFUS AUTOMATIC $100 $100
INVESTMENT PLANS
All investments must be in U.S. dollars. Third-party
checks cannot be accepted. You may be charged a fee for
any check that does not clear. Maximum TeleTransfer
purchase is $150,000 per day.
Concepts to understand
NET ASSET VALUE (NAV): a mutual fund's share price on a given day. A fund's NAV
is calculated by dividing the value of its net assets by the number of existing
shares.
AMORTIZED COST: a method of valuing a money market fund's portfolio securities,
which does not take into account unrealized gains or losses. As a result,
portfolio securities are valued at their acquisition cost, adjusted over time
based on the discounts or premiums reflected in their purchase price. This
method of valuation is designed to permit a fund to maintain a stable net asset
value.
<PAGE>
SELLING SHARES
YOU MAY SELL (REDEEM) SHARES AT ANY TIME. Your shares will be sold at the next
NAV calculated after your order is accepted by the fund's transfer agent or
other authorized entity. Any certificates representing fund shares being sold
must be returned with your redemption request. Your order will be processed
promptly and you will generally receive the proceeds within a week.
BEFORE SELLING OR WRITING A CHECK FOR RECENTLY PURCHASED SHARES,
please note
that if the fund has not yet collected payment for the shares you are selling,
it may delay sending the proceeds for up to eight business days or until it has
collected payment.
--------------------------------------------------------
Limitations on selling shares by phone
Proceeds
sent by Minimum Maximum
--------------------------------------------------------
CHECK NO MINIMUM $150,000 PER DAY
WIRE $1,000 $250,000 FOR JOINT
ACCOUNTS
EVERY 30 DAYS
TELETRANSFER $500 $250,000 FOR JOINT
ACCOUNTS
EVERY 30 DAYS
Written sell orders
Some circumstances require written sell orders along with signature guarantees.
These include:
o amounts of $1,000 or more on accounts whose address has been changed within
the last 30 days
o requests to send the proceeds to a different payee or address
Written sell orders of $100,000 or more must also be signature guaranteed.
A SIGNATURE GUARANTEE helps protect against fraud. You can obtain one from most
banks or securities dealers, but not from a notary public. For joint accounts,
each signature must be guaranteed. Please call us to ensure that your signature
guarantee will be processed correctly.
<PAGE>
ACCOUNT POLICIES (CONTINUED)
GENERAL POLICIES
UNLESS YOU DECLINE TELEPHONE PRIVILEGES on your application, you may be
responsible for any fraudulent telephone order as long as Dreyfus takes
reasonable measures to verify the order.
EACH FUND RESERVES THE RIGHT TO:
o refuse any purchase or exchange request including those from any individual
or group who, in the fund's view, has or is likely to engage in excessive
trading (usually defined as more than four exchanges out of the fund within
a calendar year)
o refuse any purchase or exchange request in excess of 1% of the fund's total
assets
o change or discontinue its exchange privilege or temporarily suspend this
privilege during unusual market conditions
o change its minimum investment amounts
o delay sending out redemption proceeds for up to seven days (generally
applies only in cases of very large redemptions, excessive trading or
during unusual market conditions)
Each fund also reserves the right to make a "redemption in kind" -- payment in
portfolio securities rather than cash -- if the amount you are redeeming is
large enough to affect fund operations (for example, if it represents more than
1% of the fund's assets).
Small account policies
To offset the relatively higher costs of servicing smaller accounts, each fund
charges regular accounts with balances below $2,000 an annual fee of $12. The
fee will be imposed during the fourth quarter of each calendar year.
The fee will be waived for: any investor whose aggregate Dreyfus mutual fund
investments total at least $25,000; IRA accounts; accounts participating in
automatic investment programs; and accounts opened through a financial
institution.
If your account falls below $500, your fund may ask you to increase your
balance. If it is still below $500 after 30 days, the fund may close your
account and send you the proceeds.
<PAGE>
DISTRIBUTIONS AND TAXES
EACH FUND USUALLY PAYS ITS SHAREHOLDERS dividends from its net investment income
once a month, and distributes any net capital gains it has realized once a year.
Your dividends and distributions will be reinvested in your fund unless you
instruct the fund otherwise. There are no fees or sales charges on
reinvestments.
FUND DIVIDENDS AND DISTRIBUTIONS ARE TAXABLE to most investors (unless your
investment is in an IRA or other tax-advantaged account). The tax status of any
distribution is the same regardless of how long you have been in the fund and
whether you reinvest your distributions or take them in cash. In general,
distributions are federally taxable as follows:
--------------------------------------------------------
Taxability of distributions
Type of Tax rate for Tax rate for
distribution 15% bracket 28% bracket or above
--------------------------------------------------------
INCOME ORDINARY ORDINARY
DIVIDENDS INCOME RATE INCOME RATE
SHORT-TERM ORDINARY ORDINARY
CAPITAL GAINS INCOME RATE INCOME RATE
LONG-TERM
CAPITAL GAINS 10% 20%
The tax status of your dividends and distributions will be detailed in your
annual tax statement from the fund.
Because everyone's tax situation is unique, always consult your tax professional
about federal, state and local tax consequences.
Concepts to understand
Except in tax-advantaged accounts, any sale or exchange of fund shares,
including through the checkwriting privilege, may generate a tax liability.
The table at right can provide a guide for your potential tax liability when
selling or exchanging fund shares. "Short-term capital gains" applies to fund
shares sold up to 12 months after buying them. "Long-term capital gains" applies
to shares sold after 12 months.
<PAGE>
SERVICES FOR FUND INVESTORS
Automatic services
BUYING OR SELLING SHARES AUTOMATICALLY is easy with the services described
below. With each service, you select a schedule and amount, subject to certain
restrictions. You can set up most of these services with your application or by
calling 1-800-645-6561.
--------------------------------------------------------
For investing
DREYFUS AUTOMATIC For making automatic investments from a designated
ASSET BUILDER(RM) bank account.
DREYFUS PAYROLL For making automatic investments through a payroll
SAVINGS PLAN deduction.
DREYFUS GOVERNMENT For making automatic investments from your
DIRECT DEPOSIT federal employment, Social Security or other
PRIVILEGE regular federal government check.
DREYFUS DIVIDEND For automatically reinvesting the dividends and
SWEEP distributions from one Dreyfus fund into another
(not available for IRAs).
For exchanging shares
DREYFUS AUTO- For making regular exchanges from one Dreyfus
EXCHANGE PRIVILEGE fund into another.
For selling shares
DREYFUS AUTOMATIC For making regular withdrawals from most
WITHDRAWAL PLAN Dreyfus funds.
Dreyfus Financial Centers
Through a nationwide network of Dreyfus Financial Centers, Dreyfus offers a full
array of investment services and products. This includes information on mutual
funds, brokerage services, tax-advantaged products and retirement planning.
Our experienced financial consultants can help you make informed choices and
provide you with personalized attention in handling account transactions. The
Financial Centers also offer informative seminars and events. To find the
Financial Center nearest you, call 1-800-499-3327.
<PAGE>
CHECKWRITING PRIVILEGE
YOU MAY WRITE REDEMPTION CHECKS against your account in amounts of $500 or more.
These checks are free; however, a fee will be charged if you request a stop
payment or if the transfer agent cannot honor a redemption check due to
insufficient funds or another valid reason. Please do not postdate your checks
or use them to close your account.
EXCHANGE PRIVILEGE
YOU CAN EXCHANGE $500 OR MORE from one Dreyfus fund into another (no minimum for
retirement accounts). You can request your exchange in writing or by phone. Be
sure to read the current prospectus for any fund into which you are exchanging.
Any new account established through an exchange will have the same privileges as
your original account (as long as they are available). There is currently no fee
for exchanges, although you may be charged a sales load when exchanging into any
fund that has one.
DREYFUS TELETRANSFER PRIVILEGE
TO MOVE MONEY BETWEEN YOUR BANK ACCOUNT and your Dreyfus fund account with a
phone call, use the Dreyfus TeleTransfer privilege. You can set up TeleTransfer
on your account by providing bank account information and following the
instructions on your application.
THE DREYFUS TOUCH(RM)
FOR 24-HOUR AUTOMATED ACCOUNT ACCESS, use Dreyfus Touch. With a touch-tone
phone, you can easily manage your Dreyfus accounts, obtain information on other
Dreyfus mutual funds and get current stock market quotes.
Retirement plans
Dreyfus offers a variety of retirement plans, including traditional, Roth and
Education IRAs. Here's where you call for information:
o for traditional, rollover, Roth and Education IRAs, call 1-800-645-6561
o for SEP-IRAs, Keogh accounts, 401(k) and 403(b) accounts, call
1-800-358-0910
<PAGE>
INSTRUCTIONS FOR REGULAR ACCOUNTS
TO OPEN AN ACCOUNT
In Writing
Complete the application.
Mail your application and a check to:
The Dreyfus Family of Funds
P.O. Box 9387, Providence, RI 02940-9387
By Telephone
WIRE Have your bank send your investment to The Bank of New York, with these
instructions:
o ABA# 021000018
o Dreyfus 100% U.S. Treasury Money
Market Fund DDA# 8900119497
o Dreyfus U.S. Treasury Short Term Fund
DDA# 8900119543
o Dreyfus U.S. Treasury Intermediate
Term Fund DDA# 8900119500
o Dreyfus U.S. Treasury Long Term Fund
DDA# 8900119519
o your Social Security or tax ID number
o name(s) of investor(s)
Call us to obtain an account number. Return your application.
Automatically
WITH AN INITIAL INVESTMENT Indicate on your application which automatic
service(s) you want. Return your application with your investment.
Via the Internet
COMPUTER Visit the Dreyfus Web site http://www.dreyfus.com and follow the
instructions to download an account application.
TO ADD TO AN ACCOUNT
In Writing
Fill out an investment slip, and write your account number on your check.
Mail the slip and the check to:
The Dreyfus Family of Funds
P.O. Box 105, Newark, NJ 07101-0105
By Telephone
WIRE Have your bank send your investment to The Bank of New York, with these
instructions:
o ABA# 021000018
o Dreyfus 100% U.S. Treasury Money
Market Fund DDA# 8900119497
o Dreyfus U.S. Treasury Short Term Fund
DDA# 8900119543
o Dreyfus U.S. Treasury Intermediate
Term Fund DDA# 8900119500
o Dreyfus U.S. Treasury Long Term Fund
DDA# 8900119519
o your account number
o name(s) of investor(s)
ELECTRONIC CHECK Same as wire, but before your account number insert "1111".
TELETRANSFER Request TeleTransfer on your application. Call us to request your
transaction.
Automatically
ALL SERVICES Call us to request a form to add any automatic investing service
(see "Services for Fund Investors"). Complete and return the forms along with
any other required materials.
TO SELL SHARES
In Writing
Write a redemption check OR letter of instruction that includes:
o your name(s) and signature(s)
o your account number
o the fund name and share class
o the dollar amount you want to sell
o how and where to send the proceeds
Obtain a signature guarantee or other documentation, if required (see "Account
Policies -- Selling Shares").
Mail your request to: The Dreyfus Family of Funds P.O. Box 9671, Providence, RI
02940-9671
By Telephone
WIRE Be sure the fund has your bank account information on file. Call us to
request your transaction. Proceeds will be wired to your bank.
TELETRANSFER Be sure the fund has your bank account information on file. Call us
to request your transaction. Proceeds will be sent to your bank by electronic
check.
CHECK Call us to request your transaction. A check will be sent to the address
of record.
Automatically
DREYFUS AUTOMATIC WITHDRAWAL PLAN Call us to request a form to add the plan.
Complete the form, specifying the amount and frequency of withdrawals you would
like.
Be sure to maintain an account balance of $5,000 or more.
To reach Dreyfus, call toll free in the U.S.
1-800-645-6561
Outside the U.S. 516-794-5452
Make checks payable to:
THE DREYFUS FAMILY OF FUNDS
You also can deliver requests to any Dreyfus Financial Center. Because
processing time may vary, please ask the representative when your account will
be credited or debited.
Concepts to understand
WIRE TRANSFER: for transferring money from one financial institution to another.
Wiring is the fastest way to move money, although your bank may charge a fee to
send or receive wire transfers. Wire redemptions from the fund are subject to a
$1,000 minimum.
ELECTRONIC CHECK: for transferring money out of a bank account. Your transaction
is entered electronically, but may take up to eight business days to clear.
Electronic checks usually are available without a fee at all Automated Clearing
House (ACH) banks.
<PAGE>
INSTRUCTIONS FOR IRAS
TO OPEN AN ACCOUNT
In Writing
Complete an IRA application, making sure to specify the fund name and to
indicate the year the contribution is for.
Mail your application and a check to:
The Dreyfus Trust Company, Custodian
P.O. Box 6427, Providence, RI 02940-6427
By Telephone
Automatically
Via the Internet
COMPUTER Visit the Dreyfus Web site http://www.dreyfus.com and follow the
instructions to download an account application.
TO ADD TO AN ACCOUNT
In Writing
Fill out an investment slip, and write your account number on your check.
Indicate the year the contribution is for.
Mail in the slip and the check (see "To Open an Account" at left).
By Telephone
WIRE Have your bank send your investment to The Bank of New York, with these
instructions:
o ABA# 021000018
o Dreyfus 100% U.S. Treasury Money
Market Fund DDA# 8900119497
o Dreyfus U.S. Treasury Short Term Fund
DDA# 8900119543
o Dreyfus U.S. Treasury Intermediate
Term Fund DDA# 8900119500
o Dreyfus U.S. Treasury Long Term Fund
DDA# 8900119519
o your account number
o name of investor
o the contribution year
ELECTRONIC CHECK Same as wire, but before your account number insert the
appropriate number as shown at right.
TELEPHONE CONTRIBUTION Call to request us to move money from a regular Dreyfus
account to an IRA (both accounts must be held in the same shareholder name).
Automatically
ALL SERVICES Call us to request a form to add an automatic investing service
(see "Services for Fund Investors"). Complete and return the form along with any
other required materials. All contributions will count as current year.
TO SELL SHARES
In Writing
Write a redemption check* OR write a letter of instruction that includes:
o your name and signature
o your account number and fund name
o the dollar amount you want to sell
o how and where to send the proceeds
o whether the distribution is qualified or premature
o whether the 10% TEFRA should be withheld
Obtain a signature guarantee or other documentation, if required. Mail in your
request (see "To Open an Account" at left).
* A redemption check written for a qualified distribution is not subject to
TEFRA.
Automatically
DREYFUS AUTOMATIC WITHDRAWAL PLAN. Call us to request instructions to establish
the plan.
To reach Dreyfus, call toll free in the U.S.
1-800-645-6561
Outside the U.S. 516-794-5452
Make checks payable to:
THE DREYFUS TRUST CO., CUSTODIAN
You also can deliver requests to any Dreyfus Financial Center. Because
processing time may vary, please ask the representative when your account will
be credited or debited.
Concepts to understand
WIRE TRANSFER: for transferring money from one financial institution to another.
Wiring is the fastest way to move money, although your bank may charge a fee to
send or receive wire transfers. Wire redemptions from the fund are subject to a
$1,000 minimum.
ELECTRONIC CHECK: for transferring money out of a bank account. Your transaction
is entered electronically, but may take up to eight business days to clear.
Electronic checks usually are available without a fee at all Automated Clearing
House (ACH) banks.
<PAGE>
For More Information
Dreyfus 100% U.S. Treasury Money Market Fund
----------------------------
SEC file number: 811-4430
Dreyfus U.S. Treasury Short Term Fund
----------------------------
SEC file number: 811-5077
Dreyfus U.S. Treasury Intermediate Term Fund
----------------------------
SEC file number: 811-4428
Dreyfus U.S. Treasury Long Term Fund
-----------------------------
SEC file number: 811-4429
More information on these funds is available free upon
request, including the following:
Annual/Semiannual Report
Describes a fund's performance, lists portfolio holdings
and contains a letter from the fund's manager discussing
recent market conditions, economic trends and fund
strategies that significantly affected the fund's
performance during the last fiscal year.
Statement of Additional Information (SAI)
Provides more details about a fund and its policies. A
current SAI is on file with the Securities and Exchange
Commission (SEC) and is incorporated by reference (is
legally considered part of this prospectus).
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 Text-only versions of fund documents can be viewed online or
downloaded from:
SEC
http://www.sec.gov
DREYFUS
http://www.dreyfus.com
You can also obtain copies by visiting the SEC's Public Reference Room in
Washington, DC (phone 1-800-SEC-0330) or by sending your request and a
duplicating fee to the SEC's Public Reference Section, Washington, DC
20549-6009.
(c) 1999, Dreyfus Service Corporation USTFP0599
<PAGE>
COMBINED
STATEMENT OF ADDITIONAL INFORMATION
FOR
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
DREYFUS U.S. TREASURY SHORT TERM FUND
DREYFUS U.S. TREASURY INTERMEDIATE TERM FUND
DREYFUS U.S. TREASURY LONG TERM FUND
MAY 1, 1999
This Statement of Additional Information, which is not a prospectus,
supplements and should be read in conjunction with the current combined
Prospectus of Dreyfus 100% U.S. Treasury Money Market Fund (the "Money Market
Fund"), Dreyfus U.S. Treasury Short Term Fund (the "Short Term Fund"), Dreyfus
U.S. Treasury Intermediate Term Fund (the "Intermediate Term Fund") and Dreyfus
U.S. Treasury Long Term Fund (the "Long Term Fund," and together with the Short
Term Fund and Intermediate Term Fund, the "Term Funds") (collectively, the
"Funds"), dated May 1, 1999 as it may be revised from time to time. To obtain a
copy of the Funds' combined Prospectus, please write to the Funds at 144 Glenn
Curtiss Boulevard, Uniondale, New York 11556-0144, or call one of the following
numbers:
Call Toll Free 1-800-645-6561
In New York City -- Call 1-718-895-1206
Outside the U.S. -- Call 516-794-5452
Each Fund's most recent Annual Report and Semi-Annual Report to
Shareholders are separate documents supplied with this Statement of Additional
Information, and the financial statements, accompanying notes and report of
independent auditors appearing in the Annual Report are incorporated by
reference into this Statement of Additional Information.
THE OPERATIONS AND INVESTMENT RESULTS OF ONE FUND ARE UNRELATED TO THOSE OF
EACH OTHER FUND. THIS COMBINED STATEMENT OF ADDITIONAL INFORMATION HAS BEEN
PREPARED FOR YOUR CONVENIENCE TO PROVIDE YOU THE OPPORTUNITY TO CONSIDER FOUR
INVESTMENT CHOICES IN ONE DOCUMENT.
<PAGE>
TABLE OF CONTENTS
PAGE
Description of the Funds..............................................B-3
Management of the Funds...............................................B-12
Management Arrangements...............................................B-17
How to Buy Shares.....................................................B-21
Shareholder Services Plan.............................................B-23
How to Redeem Shares..................................................B-24
Determination of Net Asset Value......................................B-26
Shareholder Services..................................................B-27
Portfolio Transactions................................................B-31
Dividends, Distributions and Taxes....................................B-31
Yield and Performance Information.....................................B-34
Information About the Funds...........................................B-36
Counsel and Independent Auditors......................................B-38
<PAGE>
DESCRIPTION OF THE FUNDS
The Money Market Fund, Short Term Fund, Intermediate Term Fund and Long
Term Fund are each Massachusetts business trusts that commenced operations in
March 27, 1987, September 10, 1987, March 27, 1987 and March 27, 1987,
respectively, as a limited partnership. On December 31, 1993, all of the assets
and liabilities of each partnership were transformed to a corresponding Fund in
exchange for shares of beneficial interest of the Fund. Each Fund is an open-end
management investment company, known as a mutual fund. Each Fund is a
diversified fund, which means that, with respect to 75% of its total assets, the
Fund will not invest more than 5% of its assets in the securities of any single
issuer. Securities issued or guaranteed by the U.S. Government or its agencies
or instrumentalities may be purchased without regard to any such limitation.
The Dreyfus Corporation (the "Manager") serves as each Fund's investment
adviser.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of each Fund's shares.
CERTAIN PORTFOLIO SECURITIES
The following information supplements and should be read in conjunction
with the Funds' Prospectus.
U.S. TREASURY SECURITIES. (All Funds) Each Fund may invest in U.S. Treasury
securities which include Treasury Bills, Treasury Notes and Treasury Bonds that
differ in their interest rates, maturities and times of issuance. Treasury Bills
have initial maturities of one year or less; Treasury Notes have initial
maturities of one to ten years; and Treasury Bonds generally have initial
maturities of greater than ten years.
The Intermediate Term Fund and Long Term Fund may invest in U.S. Treasury
securities that include Treasury Inflation-Protection Securities ("TIPS"), which
are newly created securities issued by the U.S. Treasury designed to provide
investors a long term investment vehicle that is not vulnerable to inflation.
The interest rate paid by TIPS is fixed, while the principal value rises or
falls semi-annually based on changes in a published Consumer Price Index. Thus,
if inflation occurs, the principal and interest payments on the TIPS are
adjusted accordingly to protect investors from inflationary loss. During a
deflationary period, the principal and interest payments decrease, although the
TIPS' principal will not drop below its face amount at maturity.
In exchange for the inflation protection, TIPS generally pay lower interest
rates than typical Treasury securities. Only if inflation occurs will TIPS offer
a higher real yield than a conventional Treasury bond of the same maturity. In
addition, it is not possible to predict with assurance how the market for TIPS
will develop; initially, the secondary market for these securities may not be as
active or liquid as the secondary market for conventional Treasury securities.
Principal appreciation and interest payments on TIPS will be taxed annually as
ordinary interest income for Federal income tax calculations. As a result, any
appreciation in principal must be counted as interest income in the year the
increase occurs, even though the investor will not receive such amounts until
the TIPS are sold or mature. Principal appreciation and interest payments will
be exempt from state and local income taxes.
U.S. GOVERNMENT SECURITIES. (Term Funds only) Each Term Fund, in addition
to U.S. Treasury securities, may invest in securities issued or guaranteed by
the U.S. Government or its agencies or instrumentalities. Some obligations
issued or guaranteed by U.S. Government agencies and instrumentalities are
supported by the full faith and credit of the U.S. Treasury; others by the right
of the issuer to borrow from the Treasury; others by discretionary authority of
the U.S. Government to purchase certain obligations of the agency or
instrumentality; and others only by the credit of the agency or instrumentality.
These securities bear fixed, floating or variable rates of interest. While the
U.S. Government currently provides financial support to such U.S.
Government-sponsored agencies or instrumentalities, no assurance can be given
that it will always do so, since it is not so obligated by law.
REPURCHASE AGREEMENTS. (Term Funds only) Each Term Fund may enter into
repurchase agreements. In a repurchase agreement, the Term Fund buys, and the
seller agrees to repurchase, a security at a mutually agreed upon time and price
(usually within seven days). The repurchase agreement thereby determines the
yield during the purchaser's holding period, while the seller's obligation to
repurchase is secured by the value of the underlying security. A Term Fund's
custodian or sub-custodian will have custody of, and will hold in a segregated
account, securities acquired by the Term Fund under a repurchase agreement.
Repurchase agreements are considered by the staff of the Securities and Exchange
Commission to be loans by the Term Fund that enters into them. Repurchase
agreements could involve risks in the event of a default or insolvency of the
other party to the agreement, including possible delays or restrictions upon the
Term Fund's ability to dispose of the underlying securities. In an attempt to
reduce the risk of incurring a loss on a repurchase agreement, each Term Fund
will enter into repurchase agreements only with domestic banks with total assets
in excess of $1 billion, or primary government securities dealers reporting to
the Federal Reserve Bank of New York, with respect to securities of the type in
which the Term Fund may invest, and will require that additional securities be
deposited with it if the value of the securities purchased should decrease below
resale price.
ZERO COUPON SECURITIES. (Term Funds only) Each Term Fund may invest in zero
coupon U.S. Treasury securities, which are U.S. Treasury Notes and Bonds that
have been stripped of their unmatured interest coupons, the coupons themselves
and receipts of certificates representing interests in such stripped debt
obligations and coupons. A zero coupon security pays no interest to its holder
and is sold at a discount to its face value at maturity. The amount of the
discount fluctuates with the market price of the security. The market prices of
zero coupon securities generally are more volatile than the market prices of
securities that pay interest periodically and are likely to respond to a greater
degree to changes in interest rates than non-zero coupon securities having
similar maturities and credit qualities.
INVESTMENT TECHNIQUES
The following information supplements and should be read in conjunction
with the Funds' Prospectus.
BORROWING MONEY. (All Funds) Each Term Fund is permitted to borrow to the
extent permitted under the Investment Company Act of 1940, as amended (the "1940
Act"), which permits an investment company to borrow in an amount up to 33-1/3%
of the value of its total assets. Each Term Fund currently intends to, and the
Money Market Fund may, borrow money only for temporary or emergency (not
leveraging) purposes, in an amount up to 15% of the value of its total assets
(including the amount borrowed) valued at the lesser of cost or market, less
liabilities (not including the amount borrowed) at the time the borrowing is
made. While borrowings exceed 5% of the value of a Fund's total assets, the Fund
will not make any additional investments.
LENDING PORTFOLIO SECURITIES. (Intermediate Term Fund and Long Term Fund
only) Each of these Funds may lend securities from its portfolio to brokers,
dealers and other financial institutions needing to borrow securities to
complete certain transactions. The Fund continues to be entitled to payments in
amounts equal to the interest or other distributions payable on the loaned
securities which affords the Fund an opportunity to earn interest on the amount
of the loan and on the loaned securities' collateral. Loans of portfolio
securities may not exceed 33-1/3% of the value of the Fund's total assets, and
the Fund will receive collateral consisting of cash, U.S. Treasury securities or
irrevocable letters of credit which will be maintained at all times in an amount
equal to at least 100% of the current market value of the loaned securities.
Such loans are terminable by the Fund at any time upon specified notice. The
Fund might experience risk of loss if the institution with which it has engaged
in a portfolio loan transaction breaches its agreement with the Fund. In
connection with its securities lending transactions, each of these Funds may
return to the borrower or a third party which is unaffiliated with the Fund, and
which is acting as a "placing broker," a part of the interest earned from the
investment of collateral received for securities loaned.
DERIVATIVES. (Intermediate Term Fund and Long Term Fund only) Each of these
Funds may invest in, or enter into, derivatives, such as options and futures,
for a variety of reasons, including to hedge certain market risks, to provide a
substitute for purchasing or selling particular securities, to manage the
effective maturity or duration of the Fund, to maintain liquidity while
simulating full investment by the Fund, or to increase potential income gain.
Derivatives may provide a cheaper, quicker or more specifically focused way for
the Fund to invest than "traditional" securities would.
Derivatives can be volatile and involve various types and degrees of risk,
depending upon the characteristics of the particular derivative and the
portfolio as a whole. Derivatives permit a Fund to increase or decrease the
level of risk, or change the character of the risk, to which its portfolio is
exposed in much the same way as the Fund can increase or decrease the level of
risk, or change the character of the risk, of its portfolio by making
investments in specific securities.
Derivatives may entail investment exposures that are greater than their
cost would suggest, meaning that a small investment in derivatives could have a
large potential impact on a Fund's performance.
If a Fund invests in derivatives at inopportune times or judges market
conditions incorrectly, such investments may lower the Fund's return or result
in a loss. A Fund also could experience losses if its derivatives were poorly
correlated with its other investments, or if the Fund were unable to liquidate
its position because of an illiquid secondary market. The market for many
derivatives is, or suddenly can become, illiquid. Changes in liquidity may
result in significant, rapid and unpredictable changes in the prices for
derivatives.
Although neither Fund will be a commodity pool, certain derivatives subject
these Funds to the rules of the Commodity Futures Trading Commission which limit
the extent to which a Fund can invest in such derivatives. A Fund may invest in
futures contracts and options with respect thereto for hedging purposes without
limit. However, neither Fund may invest in such contracts and options for other
purposes if the sum of the amount of initial margin deposits and premiums paid
for unexpired options with respect to such contracts, other than for bona fide
hedging purposes, exceeds 5% of the liquidation value of the Fund's assets,
after taking into account unrealized profits and unrealized losses on such
contracts and options; provided, however, that in the case of an option that is
in-the-money at the time of purchase, the in-the-money amount may be excluded
in calculating the 5% limitation.
Derivatives may be purchased on established exchanges or through privately
negotiated transactions referred to as over-the-counter derivatives.
Exchange-traded derivatives generally are guaranteed by the clearing agency
which is the issuer or counterparty to such derivatives. This guarantee usually
is supported by a daily payment system (i.e., variation margin requirements)
operated by the clearing agency in order to reduce overall credit risk. As a
result, unless the clearing agency defaults, there is relatively little
counterparty credit risk associated with derivatives purchased on an exchange.
By contrast, no clearing agency guarantees over-the-counter derivatives.
Therefore, each party to an over-the-counter derivative bears the risk that the
counterparty will default. Accordingly, the Manager will consider the
creditworthiness of counterparties to over-the-counter derivatives in the same
manner as it would review the credit quality of a security to be purchased by a
Fund. Over-the-counter derivatives are less liquid than exchange-traded
derivatives since the other party to the transaction may be the only investor
with sufficient understanding of the derivative to be interested in bidding for
it.
FUTURES TRANSACTIONS. Each of these Funds may purchase and sell interest
rate futures contracts. An interest rate future obligates the Fund to purchase
or sell an amount of a specific debt security at a future date at a specific
price. Engaging in these transactions involves risk of loss to the Fund which
could adversely affect the value of the Fund's net assets. Although each Fund
intends to purchase or sell futures contracts only if there is an active market
for such contracts, no assurance can be given that a liquid market will exist
for any particular contract at any particular time. Many futures exchanges and
boards of trade limit the amount of fluctuation permitted in futures contract
prices during a single trading day. Once the daily limit has been reached in a
particular contract, no trades may be made that day at a price beyond that limit
or trading may be suspended for specified periods during the trading day.
Futures contract prices could move to the limit for several consecutive trading
days with little or no trading, thereby preventing prompt liquidation of futures
positions and potentially subjecting the Fund to substantial losses.
Successful use of futures by the Fund also is subject to the Manager's
ability to predict correctly movements in the direction of the relevant market,
and, to the extent the transaction is entered into for hedging purposes, to
ascertain the appropriate correlation between the transaction being hedged and
the price movements of the futures contract. For example, if the Fund uses
futures to hedge against the possibility of a decline in the market value of
securities held in its portfolio and the prices of such securities instead
increase, the Fund will lose part or all of the benefit of the increased value
of securities which it has hedged because it will have offsetting losses in its
futures positions. Furthermore, if in such circumstances the Fund has
insufficient cash, it may have to sell securities to meet daily variation margin
requirements. The Fund may have to sell such securities at a time when it may be
disadvantageous to do so.
Pursuant to regulations and/or published positions of the Securities and
Exchange Commission, a Fund may be required to set aside permissible liquid
assets in a segregated account to cover its obligations relating to its
transactions in derivatives. To maintain this required cover, the Fund may have
to sell portfolio securities at disadvantageous prices or times since it may not
be possible to liquidate a derivative position at a reasonable price. In
addition, the segregation of such assets will have the effect of limiting a
Fund's ability otherwise to invest those assets.
OPTIONS. Each of these Funds may invest up to 5% of its assets, represented
by the premium paid, in the purchase of call and put options. A Fund may write
(i.e., sell) covered call and put option contracts to the extent of 20% of the
value of its net assets at the time such option contracts are written. A call
option gives the purchaser of the option the right to buy, and obligates the
writer to sell, the underlying security or securities at the exercise price at
any time during the option period, or at a specific date. Conversely, a put
option gives the purchaser of the option the right to sell, and obligates the
writer to buy, the underlying security or securities at the exercise price at
any time during the option period, or at a specific date.
A covered call option written by the Fund is a call option with respect to
which the Fund owns the underlying security or otherwise covers the transaction
by segregating cash or other securities. A put option written by the Fund is
covered when, among other things, cash or liquid securities having a value equal
to or greater than the exercise price of the option are placed in a segregated
account to fulfill the obligation undertaken. The principal reason for writing
covered call and put options is to realize, through the receipt of premiums, a
greater return than would be realized on the underlying securities alone. The
Fund receives a premium from writing covered call or put options which it
retains whether or not the option is exercised.
There is no assurance that sufficient trading interest to create a liquid
secondary market on a securities exchange will exist for any particular option
or at any particular time, and for some options no such secondary market may
exist. A liquid secondary market in an option may cease to exist for a variety
of reasons. In the past, for example, higher than anticipated trading activity
or order flow, or other unforeseen events, at times have rendered certain of the
clearing facilities inadequate and resulted in the institution of special
procedures, such as trading rotations, restrictions on certain types of orders
or trading halts or suspensions in one or more options. There can be no
assurance that similar events, or events that may otherwise interfere with the
timely execution of customers' orders, will not recur. In such event, it might
not be possible to effect closing transactions in particular options. If, as a
covered call option writer, the Fund is unable to effect a closing purchase
transaction in a secondary market, it will not be able to sell the underlying
security until the option expires or it delivers the underlying security upon
exercise or it otherwise covers its position.
Each of these Funds may purchase cash-settled options on interest rate
swaps in pursuit of its investment objective. Interest rate swaps involve the
exchange by the Fund with another party of their respective commitments to pay
or receive interest (for example, an exchange of floating-rate payments for
fixed-rate payments). A cash-settled option on a swap gives the purchaser the
right, but not the obligation, in return for the premium paid, to receive an
amount of cash equal to the value of the underlying swap as of the exercise
date. These options typically are purchased in privately negotiated transactions
from financial institutions, including securities brokerage firms.
Successful use by the Fund of options will be subject to the Manager's
ability to predict correctly movements in interest rates and the prices of
securities underlying options. To the extent the Manager's predictions are
incorrect, the Fund may incur losses.
FUTURE DEVELOPMENTS. (Intermediate Term Fund and Long Term Fund) Each of
these Funds may take advantage of opportunities in the area of options and
futures contracts and options on futures contracts and any other derivatives
which are not presently contemplated for use by the Fund or which are not
currently available but which may be developed, to the extent such opportunities
are both consistent with the Fund's investment objective and legally permissible
for the Fund. Before entering into such transactions or making any such
investment, the Fund will provide appropriate disclosure in its Prospectus or
Statement of Additional Information.
FORWARD COMMITMENTS. (All Funds) U.S. Treasury securities and certain other
securities purchased by a Fund frequently are offered on a when-issued basis,
which means that the price is fixed at the time of commitment, but delivery and
payment ordinarily take place a number of days after the date of the commitment
to purchase. A Fund will commit to purchase such securities only with the
intention of actually acquiring the securities, but the Fund may sell these
securities before the settlement date if it is deemed advisable. A Fund will not
accrue income in respect of a security purchased on a when-issued basis prior to
its stated delivery date.
Securities purchased on a when-issued basis are subject to changes in value
(both generally changing in the same way, i.e., appreciating when interest rates
decline and depreciating when interest rates rise) based upon changes, real or
anticipated, in the level of interest rates. Securities purchased on a
when-issued basis may expose a Fund to risk because they may experience such
fluctuations prior to their actual delivery. Purchasing securities on a
when-issued basis can involve the additional risk that the yield available in
the market when the delivery takes place actually may be higher than that
obtained in the transaction itself. Each Fund will set aside in a segregated
account permissible liquid assets at least equal at all times to the amount of
the when-issued commitments. Purchasing securities on a when-issued basis when a
Fund is fully or almost fully invested may result in greater potential
fluctuation in the value of such Fund's net assets and its net asset value per
share.
INVESTMENT RESTRICTIONS
Each Fund's investment objective is a fundamental policy, which cannot be
changed without approval by the holders of a majority (as defined in the 1940
Act) of the Fund's outstanding voting shares. In addition, the Funds have
adopted certain investment restrictions as fundamental policies and certain
other investment restrictions as non-fundamental policies, as described below.
MONEY MARKET FUND ONLY. The Money Market Fund has adopted investment
restrictions numbered 1 through 6 as fundamental policies. Investment
restrictions numbered 7 and 8 are not fundamental policies and may be changed by
vote of a majority of the Fund's Board members at any time. The Money Market
Fund may not:
1. Sell securities short or purchase securities on margin or write or
purchase put or call options or combinations thereof.
2. Underwrite the securities of other issuers or purchase securities
subject to restrictions on disposition under the Securities Act of 1933 (so
called "restricted securities").
3. Make loans to others except through the purchase of debt obligations
referred to in the Prospectus.
4. Issue any senior security (as such term is defined in Section 18(f) of
the 1940 Act), except to the extent permitted under the 1940 Act.
5. Purchase or sell real estate, real estate investment trust securities,
commodities, or oil and gas interests.
6. Borrow money, except from banks for temporary or emergency (not
leveraging) purposes in an amount up to 15% of the value of the Fund's total
assets (including the amount borrowed) valued at the lesser of cost or market,
less liabilities (not including the amount borrowed) at the time the borrowing
is made. While borrowings exceed 5% of the value of the Fund's total assets, the
Fund will not make any additional investments.
7. Purchase securities other than those believed at the time of purchase to
provide the holder thereof with interest income exempt from state and local
income taxes.
8. Invest in securities of other investment companies, except as they may
be acquired as part of a merger, consolidation or acquisition of assets.
* * *
SHORT TERM FUND ONLY. The Short Term Fund has adopted investment
restrictions numbered 1 through 6 as fundamental policies. Investment
restrictions numbered 7 through 9 are not fundamental policies and may be
changed by vote of a majority of the Fund's Board members at any time. The Short
Term Fund may not:
1. Purchase securities on margin, or write or purchase put or call options
or combinations thereof.
2. Underwrite the securities of other issuers, except to the extent the
Fund may be deemed an underwriter under the Securities Act of 1933, as amended,
by virtue of disposing of portfolio securities, or purchase securities subject
to restrictions on disposition under the Securities Act of 1933, as amended (so
called "restricted securities").
3. Make loans to others, except through the purchase of debt obligations
referred to in the Prospectus or the entry into repurchase agreements.
4. Issue any senior security (as such term is defined in Section 18(f) of
the 1940 Act), except to the extent permitted under the 1940 Act.
5. Purchase or sell real estate, real estate investment trust securities,
commodities, or oil and gas interests.
6. Borrow money, except to the extent permitted under the 1940 Act (which
currently limits borrowing to no more than 33-1/3% of the value of the Fund's
assets).
7. Pledge, hypothecate, mortgage or otherwise encumber its assets, except
to the extent necessary to secure permitted borrowings and to the extent related
to the deposit of assets in escrow in connection with the purchase of securities
on a when-issued or delayed-delivery basis.
8. Sell securities short.
9. Invest in securities of other investment companies, except as they may
be acquired as part of a merger, consolidation or acquisition of assets.
* * *
INTERMEDIATE TERM FUND AND LONG TERM FUND. Each of the Intermediate Term
Fund and Long Term Fund has adopted investment restrictions numbered 1 through 6
as fundamental policies. Investment restrictions numbered 7 through 9 are not
fundamental policies and may be changed by vote of a majority of the Fund's
Board members at any time. Neither of these Funds may:
1. Purchase securities on margin, but the Fund may make margin deposits in
connection with transactions in options, forward contracts, futures contracts,
including those related to indexes, and options on futures contracts or indexes.
2. Underwrite the securities of other issuers, except to the extent the
Fund may be deemed an underwriter under the Securities Act of 1933, as amended,
by virtue of disposing of portfolio securities, or purchase securities subject
to restrictions on disposition under the Securities Act of 1933, as amended (so
called "restricted securities").
3. Make loans to others, except through the purchase of debt obligations
referred to in the Prospectus or the entry into repurchase agreements. However,
the Fund may lend its portfolio securities to the extent permitted under the
1940 Act (which currently permits lending portfolio securities in an amount not
to exceed 33-1/3% of the value of the Fund's total assets). Any loans of
portfolio securities will be made according to guidelines established by the
Securities and Exchange Commission and the Fund's Board.
4. Issue any senior security (as such term is defined in Section 18(f) of
the 1940 Act), except to the extent that the activities permitted in Investment
Restriction Nos. 5, 6 and 7 may be deemed to give rise to a senior security.
5. Purchase or sell real estate, real estate investment trust securities,
commodities, or oil and gas interests, provided that the Fund may purchase and
sell securities that are secured by real estate or issued by companies that
invest or deal in real estate or acquire real estate as a result of ownership of
such securities or instruments, and provided further that the Fund may purchase
and sell options, forward contracts, futures contracts, including those relating
to indexes, and options on futures contracts or indexes.
6. Borrow money, except to the extent permitted under the 1940 Act (which
currently limits borrowing to no more than 33-1/3% of the value of the Fund's
assets). For purposes of this Investment Restriction, the entry into options,
forward contracts, futures contracts, including those relating to indexes, and
options on futures contracts or indexes shall not constitute borrowing.
7. Pledge, hypothecate, mortgage or otherwise encumber its assets, except
to the extent necessary to secure permitted borrowings and to the extent related
to the deposit of assets in escrow in connection with the purchase of securities
on a when-issued or delayed-delivery basis and collateral and initial or
variation margin arrangements with respect to options, forward contracts,
futures contracts, including those related to indexes, and options on futures
contracts or indexes.
8. Sell securities short.
9. Invest in securities of other investment companies, except as they may
be acquired as part of a merger, consolidation or acquisition of assets.
* * *
If a percentage restriction is adhered to at the time of investment, a
later increase in percentage resulting from a change in values or assets will
not constitute a violation of that restriction.
MANAGEMENT OF THE FUNDS
Each Fund's Board is responsible for the management and supervision of the
Fund. The Board approves all significant agreements between the Fund and those
companies that furnish services to the Fund. These companies are as follows: The
Dreyfus Corporation........................Investment Adviser
Premier Mutual Fund Services, Inc..........Distributor
Dreyfus Transfer, Inc......................Transfer Agent
The Bank of New York.......................Custodian for the
Money Market Fund Mellon Bank, N.A.........Custodian for each Term Fund
Board members and officers of the Funds, together with information as to
their principal business occupations during at least the last five years, are
shown below. Each Board member who is deemed to be an "interested person" of the
Funds, as defined in the 1940 Act, is indicated by an asterisk.
BOARD MEMBERS OF EACH FUND
JOSEPH S. DiMARTINO, CHAIRMAN OF THE BOARD. Since January 1995, Chairman of the
Board of various funds in the Dreyfus Family of Funds. He also is a
director of The Muscular Dystrophy Association, The Noel Group, Inc., a
venture capital company (for which, from February 1995 until November 1997,
he was Chairman of the Board), Staffing Resources, Inc., a temporary
placement agency, HealthPlan Services Corporation, a provider of marketing,
administrative and risk management services to health and other benefit
programs, Carlyle Industries, Inc. (formerly, Belding Heminway Company,
Inc.), a button packager and distributor, and Century Business Services,
Inc. (formerly, International Alliance Services, Inc.), a provider of
various outsourcing functions for small and medium sized companies. For
more than five years prior to January 1995, he was President, a director
and, until August 1994, Chief Operating Officer of the Manager and
Executive Vice President and a director of Dreyfus Service Corporation, a
wholly-owned subsidiary of the Manager and, until August 24, 1994, the
Funds' distributor. From August 1994 until December 31, 1994, he was a
director of Mellon Bank Corporation. He is 55 years old and his address is
200 Park Avenue, New York, New York 10166.
GORDON J. DAVIS, BOARD MEMBER. Since October 1994, senior partner with the law
firm of LeBoeuf, Lamb, Greene & MacRae. From 1983 to September 1994, he was
a senior partner with the law firm of Lord Day & Lord, Barrett Smith. From
1978 to 1983, he was Commissioner of Parks and Recreation for the City of
New York. He also is a director of Consolidated Edison, a utility company,
and Phoenix Home Life Insurance Company and a member of various other
corporate and not-for-profit boards. He is 57 years old and his address is
241 Central Park West, New York, New York 10024.
DAVID P. FELDMAN, BOARD MEMBER. Director of several mutual funds in the 59 Wall
Street Mutual Funds Group and Jeffrey Company, a private investment
company. He was employed by AT&T from July 1961 to his retirement in April
1997, most recently serving as Chairman and Chief Executive Officer of AT&T
Investment Management Corporation. He is 59 years old and his address is
466 Lexington Avenue, New York, New York 10017.
LYNN MARTIN, BOARD MEMBER. Professor, J.L. Kellogg Graduate School of
Management, Northwestern University. During the Spring Semester 1993, she
was a Visiting Fellow at the Institute of Politics, Kennedy School of
Government, Harvard University. She also is an advisor to the international
accounting firm of Deloitte & Touche, LLP and chair of its Council for the
Advancement of Women. From January 1991 through January 1993, Ms. Martin
served as Secretary of the United States Department of Labor. From 1981 to
1991, she served in the United States House of Representatives as a
Congresswoman from the State of Illinois. She also is a director of
Harcourt General, Inc., Ameritech, Ryder System, Inc., The Proctor & Gamble
Co., a consumer company, and TRW, Inc., an aerospace and automotive
equipment company. She is 59 years old and her address is c/o Deloitte &
Touche, LLP, Two Prudential Plaza, 180 N. Stetson Avenue, Chicago, Illinois
60601.
DANIEL ROSE, BOARD MEMBER. President and Chief Executive Officer of Rose
Associates, Inc., a New York based real estate development and management
firm. In July 1994, Mr. Rose received a Presidential appointment to serve
as a Director of the Baltic-American Enterprise Fund, which will make
equity investments and loans, and provide technical business assistance to
new business concerns in the Baltic states. He also is Chairman of the
Housing Committee of the Real Estate Board of New York, Inc., and a trustee
of Corporate Property Investors, a real estate investment company. He is 69
years old and his address is c/o Rose Associates, Inc., 200 Madison Avenue,
New York, New York 10016.
*PHILIP L. TOIA, BOARD MEMBER. Retired. Mr. Toia was employed by the Manager
from August 1986 through January 1997, most recently serving as Vice
Chairman--Administration and Operations. He is 65 years old and his
address is 9022 Michael Circle, Naples, Florida 34113.
SANDER VANOCUR, BOARD MEMBER. Since January 1992, he has been President of Old
Owl Communications, a full-service communications firm. From May 1995 to
June 1996, he was a Professional in Residence at the Freedom Forum in
Arlington, VA; from January 1994 to May 1995, he served as Visiting
Professional Scholar at the Freedom Forum Amendment Center at Vanderbilt
University; and from November 1989 to November 1995, he was a director of
the Damon Runyon-Walter Winchell Cancer Research Fund. From June 1977 to
December 1991, he was a Senior Correspondent of ABC News and, from October
1986 to December 1991, he was Anchor of the ABC News program "Business
World," a weekly business program on the ABC television network. He is 71
years old and his address is 2928 P Street, N.W., Washington, DC 20007.
ANNE WEXLER, BOARD MEMBER. Chairman of the Wexler Group, consultants
specializing in government relations and public affairs. She also is a
director of Wilshire Mutual Funds, Comcast Corporation, The New England
Electric System, and a member of the Council of Foreign Relations and the
National Park Foundation. She is 69 years old and her address is c/o The
Wexler Group, 1317 F Street, Suite 600, N.W., Washington, DC 20004.
REX WILDER, BOARD MEMBER. Financial Consultant. He is 78 years old and his
address is 290 Riverside Drive, New York, New York 10025.
For so long as a Fund's Shareholder Services Plan described in the section
captioned "Shareholder Services Plan" remains in effect, the Fund's Board
members who are not "interested persons" of the Fund, as defined in the 1940
Act, will be selected and nominated by the Board members who are not "interested
persons" of the Fund.
Each Fund typically pays its Board members an annual retainer and a
per meeting fee and reimburses them for their expenses. The Chairman of the
Board receives an additional 25% of such compensation. Emeritus Board members
are entitled to receive an annual retainer and per meeting fee of one-half the
amount paid to them as Board members. For the fiscal year ended December 31,
1998, the aggregate amount of compensation paid to each Board member by the
Funds and all funds in the Dreyfus Family of Funds for which such person was a
Board member (the number of which is set forth in parenthesis next to each Board
member's total compensation*) during the year ended December 31, 1998, is as
follows:
Total
Aggregate Compensation from
Aggregate Compensation Funds and Fund
Name of Board Compensation from from Each Complex Paid to
Member Money Market Fund** Term Fund** Board Member
- ---------------- ------------------- -------------- -----------------
Joseph S. DiMartino $9,375 $5,000 $619,660 (187)
Gordon J. Davis $7,500 $4,000 $83,500 (29)
David P. Feldman $6,000 $3,250 $106,750 (56)
Lynn Martin $7,500 $4,000 $38,500 (14)
Eugene McCarthy+ $2,500 $1,375 $13,375 (14)
Daniel Rose $7,500 $4,000 $76,250 (30)
Philip L. Toia $7,500 $4,000 $38,500 (14)
Sander Vanocur $7,500 $4,000 $76,250 (30)
Anne Wexler $7,000 $3,750 $60,250 (28)
Rex Wilder $7,500 $4,000 $38,500 (14)
- ------------------------
* Represents the number of separate portfolios comprising the investment
companies in the Fund Complex, including the Fund, for which the Board
member serves.
** Amount does not include reimbursed expenses for attending Board
meetings, which amounted to $7,719, $1,941, $1,937 and $1,880 for the
Money Market Fund, Short Term Fund, Intermediate Term Fund and Long
Term Fund, respectively, for all Board members as a group.
+ Board member Emeritus since March 29, 1996.
OFFICERS OF THE FUNDS
MARIE E. CONNOLLY, PRESIDENT AND TREASURER. President, Chief Executive Officer,
Chief Compliance Officer and a director of the Distributor and Funds
Distributor, Inc., the ultimate parent of which is Boston Institutional
Group, Inc., and an officer of other investment companies advised or
administered by the Manager. She is 41 years old.
MARGARET W. CHAMBERS, VICE PRESIDENT AND SECRETARY. Senior Vice President and
General Counsel of Funds Distributor, Inc., and an officer of other
investment companies advised or administered by the Manager. From August
1996 to March 1998, she was Vice President and Assistant General Counsel
for Loomis, Sayles & Company, L.P. From January 1986 to July 1996, she was
an associate with the law firm of Ropes & Gray. She is 39 years old.
STEPHANIE D. PIERCE, VICE PRESIDENT, ASSISTANT SECRETARY AND ASSISTANT
TREASURER. Vice President and Client Development Manager of Funds
Distributor, Inc., and an officer of other investment companies advised or
administered by the Manager. From April 1997 to March 1998, she was
employed as a Relationship Manager with Citibank, N.A. From August 1995 to
April 1997, she was an Assistant Vice President with Hudson Valley Bank,
and from September 1990 to August 1995, she was Second Vice President with
Chase Manhattan Bank. She is 30 years old.
MARY A. NELSON, VICE PRESIDENT AND ASSISTANT TREASURER. Vice President of the
Distributor and Funds Distributor, Inc., and an officer of other investment
companies advised or administered by the Manager. From September 1989 to
July 1994, she was an Assistant Vice President and Client Manager for The
Boston Company, Inc. She is 35 years old.
GEORGE A. RIO, VICE PRESIDENT AND ASSISTANT TREASURER. Executive Vice President
and Client Service Director of Funds Distributor, Inc., and an officer of
other investment companies advised or administered by the Manager. From
June 1995 to March 1998, he was Senior Vice President and Senior Key
Account Manager for Putnam Mutual Funds. From May 1994 to June 1995, he was
Director of Business Development for First Data Corporation. From September
1983 to May 1994, he was Senior Vice President and Manager of Client
Services and Director of Internal Audit at The Boston Company, Inc. He is
44 years old.
JOSEPH F. TOWER, III, VICE PRESIDENT AND ASSISTANT TREASURER. Senior Vice
President, Treasurer, Chief Financial Officer and a director of the
Distributor and Funds Distributor, Inc., and an officer of other investment
companies advised or administered by the Manager. From July 1988 to August
1994, he was employed by The Boston Company, Inc. where he held various
management positions in the Corporate Finance and Treasury areas. He is 37
years old.
DOUGLAS C. CONROY, VICE PRESIDENT AND ASSISTANT SECRETARY. Assistant Vice
President of Funds Distributor, Inc., and an officer of other investment
companies advised or administered by the Manager. From April 1993 to
January 1995, he was a Senior Fund Accountant for Investors Bank & Trust
Company. He is 30 years old.
CHRISTOPHER J. KELLEY, VICE PRESIDENT AND ASSISTANT SECRETARY. Vice President
and Senior Associate General Counsel of Funds Distributor, Inc., and an
officer of other investment companies advised or administered by the
Manager. From April 1994 to July 1996, he was Assistant Counsel at Forum
Financial Group. He is 34 years old.
KATHLEEN K. MORRISEY, VICE PRESIDENT AND ASSISTANT SECRETARY. Manager of
Treasury Services Administration of Funds Distributor, Inc., and an officer
of other investment companies advised or administered by the Manager. From
July 1994 to November 1995, she was a Fund Accountant for Investors Bank &
Trust Company. She is 26 years old.
ELBA VASQUEZ, VICE PRESIDENT AND ASSISTANT SECRETARY. Assistant Vice President
of Funds Distributor, Inc., and an officer of other investment companies
advised or administered by the Manager. From March 1990 to May 1996, she
was employed by U.S. Trust Company of New York where she held various sales
and marketing positions. She is 37 years old.
The address of each officer of the Fund is 200 Park Avenue, New York, New
York 10166.
The Fund's Board members and the officers, as a group, owned less than 1%
of each Fund's shares outstanding on February 28, 1999.
MANAGEMENT ARRANGEMENTS
INVESTMENT ADVISER. The Manager is a wholly-owned subsidiary of Mellon
Bank, N.A., which is a wholly-owned subsidiary of Mellon Bank Corporation
("Mellon"). Mellon is a publicly owned multibank holding company incorporated
under Pennsylvania law in 1971 and registered under the Federal Bank Holding
Company Act of 1956, as amended. Mellon provides a comprehensive range of
financial products and services in domestic and selected international markets.
Mellon is among the twenty-five largest bank holding companies in the United
States based on total assets.
The Manager provides management services pursuant to a separate Management
Agreement (the "Agreement") with each Fund dated August 24, 1994. As to each
Fund, the Agreement is subject to annual approval by (i) the Fund's Board or
(ii) vote of a majority (as defined in the 1940 Act) of such Fund's outstanding
voting securities, provided that in either event the continuance also is
approved by a majority of the Board members who are not "interested persons" (as
defined in the 1940 Act) of such Fund or the Manager, by vote cast in person at
a meeting called for the purpose of voting such approval. Each Agreement was
approved by the respective Fund's shareholders on August 3, 1994, and was last
approved by the Fund's Board, including a majority of the Board members who are
not "interested persons" of any party to this Agreement, at a meeting held on
October 20, 1998. As to each Fund, the Agreement is terminable without penalty,
on 60 days' notice, by the Fund's Board or by vote of the holders of a majority
of such Fund's shares, or, on not less than 90 days' notice, by the Manager. The
Agreement will terminate automatically, as to the relevant Fund, in the event of
its assignment (as defined in the 1940 Act).
The following persons are officers and/or directors of the Manager:
Christopher M. Condron, Chairman of the Board and Chief Executive Officer;
Stephen E. Canter, President, Chief Operating Officer, Chief Investment Officer
and a director; Thomas F. Eggers, Vice Chairman--Institutional and a director;
Lawrence S. Kash, Vice Chairman and a director; J. David Officer, Vice Chairman
and a director; Ronald P. O'Hanley III, Vice Chairman; William T. Sandalls, Jr.,
Executive Vice President; Mark N. Jacobs, Vice President, General Counsel and
Secretary; Diane P. Durnin, Vice President--Product Development; Patrice M.
Kozlowski, Vice President--Corporate Communications; Mary Beth Leibig, Vice
President--Human Resources; Andrew S. Wasser, Vice President--Information
Systems; Theodore A. Schachar, Vice President; Wendy Strutt, Vice President;
Richard Terres, Vice President; William H. Maresca, Controller; James Bitetto,
Assistant Secretary; Steven F. Newman, Assistant Secretary; and Mandell L.
Berman, Burton C. Borgelt, Steven G. Elliott, Martin C. McGuinn, Richard W. Sabo
and Richard F. Syron, directors.
The Manager manages each Fund's portfolio of investments in accordance with
the stated policies of such Fund, subject to the approval of the Fund's Board.
The Manager is responsible for investment decisions, and provides each Fund with
portfolio managers who are authorized by the Fund's Board to execute purchases
and sales of securities. The Term Funds' portfolio managers are Gerald E.
Thunelius, Michael Hoeh, Roger King, Kevin McClintock and Matthew Olson. The
Money Market Fund's portfolio managers are Bernard W. Kiernan, Jr., Patricia A.
Larkin and Thomas S. Riordan. The Manager also maintains a research department
with a professional staff of portfolio managers and securities analysts who
provide research services for each Fund and for other funds advised by the
Manager.
The Manager maintains office facilities on behalf of each Fund, and
furnishes statistical and research data, clerical help, accounting, data
processing, bookkeeping and internal auditing and certain other required
services to each Fund. The Manager may pay the Distributor for shareholder
services from the Manager's own assets, including past profits but not including
the management fee paid by the Funds. The Distributor may use part or all of
such payments to pay securities dealers, banks or other financial institutions
in respect of these services. The Manager also may make such advertising and
promotional expenditures, using its own resources, as it from time to time deems
appropriate.
All expenses incurred in the operation of a Fund are borne by such Fund,
except to the extent specifically assumed by the Manager. The expenses borne by
each Fund include: taxes, interest, brokerage fees and commissions, if any, fees
of Board members who are not officers, directors, employees or holders of 5% or
more of the outstanding voting securities of the Manager, Securities and
Exchange Commission fees, state Blue Sky qualification fees, advisory fees,
charges of custodians, transfer and dividend disbursing agents' fees, certain
insurance premiums, industry association fees, outside auditing and legal
expenses, costs of independent pricing services, costs of maintaining such
Fund's existence, costs attributable to investor services (including, without
limitation, telephone and personnel expenses), costs of shareholders' reports
and meetings, costs of preparing and printing prospectuses and statements of
additional information for regulatory purposes and for distribution to existing
shareholders, and any extraordinary expenses.
As compensation for the Manager's services, the Money Market Fund has
agreed to pay the Manager a monthly management fee at the annual rate of .50% of
the value of such Fund's average daily net assets and each Term Fund has agreed
to pay the Manager a monthly management fee at the annual rate of .60% of the
value of such Fund's average daily net assets. The net management fees paid by
each Fund for the fiscal years ended December 31, 1996, 1997 and 1998 were as
follows:
MONEY MARKET FUND
1996 1997 1998
---- ---- ----
Management $ 6,308,947 $ 6,024,580 $ 5,564,881
fee payable
Reduction due $ 0 $ 0 $ 0
to undertakings
Net management $ 6,308,947 $ 6,024,580 $ 5,564,881
fee paid
SHORT TERM FUND
1996 1997 1998
---- ---- ----
Management $ 1,167,392 $ 1,086,726 $ 1,131,270
fee payable
Reduction due $ 524,729 $ 560,243 $ 258,820
to undertakings
Net management $ 642,663 $ 526,483 $ 872,450
fee paid
INTERMEDIATE TERM FUND
1996 1997 1998
---- ---- ----
Management $ 1,185,588 $ 1,115,847 $1,103,857
fee payable
Reduction due $ 266,266 $ 317,075 $ 305,837
to undertakings
Net management $ 919,322 $ 798,772 $ 798,020
fee paid
LONG TERM FUND
1996 1997 1998
---- ---- ----
Management $ 817,303 $ 772,520 $ 824,019
fee payable
Reduction due $ 254,540 $ 310,909 $ 292,049
to undertakings
Net management $ 562,763 $ 461,611 $ 531,970
fee paid
The Manager has agreed that if, in any fiscal year, the aggregate expenses
of a Fund, exclusive of taxes, brokerage fees, interest on borrowings and (with
the prior written consent of the necessary state securities commissions)
extraordinary expenses, but including the management fee, exceed the expense
limitation of any state having jurisdiction over the Fund, such Fund may deduct
from the payment to be made to the Manager under the Agreement, or the Manager
will bear, such excess expense to the extent required by state law. Such
deduction or payment, if any, will be estimated daily, and reconciled and
effected or paid, as the case may be, on a monthly basis.
The aggregate of the fees payable to the Manager is not subject to
reduction as the value of a Fund's respective net assets increases.
DISTRIBUTOR. The Distributor, located at 60 State Street, Boston,
Massachusetts 02109, serves as each Fund's distributor on a best efforts basis
pursuant to separate agreements each of which is renewable annually. The
Distributor also acts as distributor for other funds in the Dreyfus Family of
Funds and for certain other investment companies.
TRANSFER AND DIVIDEND DISBURSING AGENT AND CUSTODIAN. Dreyfus Transfer,
Inc. (the "Transfer Agent"), a wholly-owned subsidiary of the Manager, P.O. Box
9671, Providence, Rhode Island 02940-9671, is each Fund's transfer and dividend
disbursing agent. Under a transfer agency agreement with each Fund, the Transfer
Agent arranges for the maintenance of shareholder account records for each Fund,
the handling of certain communications between shareholders and each Fund and
the payment of dividends and distributions payable by each Fund. For these
services, the Transfer Agent receives a monthly fee computed on the basis of the
number of shareholder accounts it maintains for the Fund during the month, and
is reimbursed for certain out-of-pocket expenses.
The Bank of New York, 90 Washington Street, New York, New York 10286, is
the Money Market Fund's custodian. The Bank of New York has no part in
determining the investment policies of the Money Market Fund or which securities
are to be purchased or sold by the Fund.
Mellon Bank, N.A., the Manager's parent, One Mellon Bank Center,
Pittsburgh, Pennsylvania 15258, acts as custodian of the Term Fund's
investments. Under a custody agreement with each Term Fund, Mellon Bank, N.A.,
the Manager's parent, One Mellon Bank Center, Pittsburgh, Pennsylvania 15258,
serves as Custodian of each Term Fund's investments. Under a custody agreement
with each Term Fund, Mellon Bank, N.A. holds the Term Fund's securities and
keeps all necessary accounts and records. For its custody services, Mellon Bank,
N.A. receives a monthly fee based on the market value of each Term Fund's assets
held in custody and receives certain securities transactions charges.
HOW TO BUY SHARES
GENERAL. Fund shares are sold without a sales charge. You may be charged a
nominal fee if you effect transactions in shares of a Fund through a securities
dealer, bank or other financial institution. Share certificates are issued only
upon your written request. No certificates are issued for fractional shares.
Each Fund reserves the right to reject any purchase order.
The minimum initial investment for each Fund is $2,500, or $1,000 if you
are a client of a securities dealer, bank or other financial institution which
has made an aggregate minimum initial purchase for its customers of $2,500.
Subsequent investments must be at least $100. The initial investment must be
accompanied by the Account Application. For full-time or part-time employees of
the Manager or any of its affiliates or subsidiaries, directors of the Manager,
Board members of a fund advised by the Manager, including members of each Fund's
Board, or the spouse or minor child of any of the foregoing, the minimum initial
investment is $1,000. For full-time or part-time employees of the Manager or any
of its affiliates or subsidiaries who elect to have a portion of their pay
directly deposited into their Fund account, the minimum initial investment is
$50. Each Fund reserves the right to offer Fund shares without regard to minimum
purchase requirements to employees participating in certain qualified or
non-qualified employee benefit plans or other programs where contributions or
account information can be transmitted in a manner and form acceptable to such
Fund. Each Fund reserves the right to vary further the initial and subsequent
investment minimum requirements at any time. Fund shares also are offered
without regard to the minimum initial investment requirements through Dreyfus-
AUTOMATIC Asset Builder(R), Dreyfus Government Direct Deposit Privilege or
Dreyfus Payroll Savings Plan pursuant to the Dreyfus Step Program described
under "Shareholder Services." These services enable you to make regularly
scheduled investments and may provide you with a convenient way to invest for
long-term financial goals. You should be aware, however, that periodic
investment plans do not guarantee a profit and will not protect an investor
against loss in a declining market.
Shares are sold on a continuous basis at the net asset value per share next
determined after an order in proper form is received by the Transfer Agent or
other entity authorized to receive orders on behalf of the Fund. Net asset value
per share is determined as of the close of trading on the floor of the New York
Stock Exchange (currently 4:00 p.m., New York time), on each day the New York
Stock Exchange is open for business. Net asset value per share is computed by
dividing the value of the Fund's net assets (i.e., the value of its assets less
liabilities) by the total number of shares outstanding. Each Term Fund's
portfolio securities are valued at the average of the most recent bid and asked
prices. Expenses and fees of each Fund, including the management fee (reduced by
the expense limitation, if any), are accrued daily and taken into account for
the purpose of determining such Fund's net asset value. See "Determination of
Net Asset Value."
For certain institutions that have entered into agreements with the
Distributor, payment for the purchase of Term Fund shares may be transmitted,
and must be received by the Transfer Agent, within three business days after the
order is placed. If such payment is not received within three business days
after the order is placed, the order may be canceled and the institution could
be held liable for resulting fees and/or losses.
The Distributor may pay dealers a fee up to .50% of the amount invested
through such dealers in Fund shares by employees participating in qualified or
non-qualified employee benefit plans or other programs where (i) the employers
or affiliated employers maintaining such plans or programs have a minimum of 250
employees eligible for participation in such plans or programs, or (ii) such
plan's or program's aggregate investment in the Dreyfus Family or Funds or
certain other products made available by the Distributor to such plan or
programs exceeds $1,000,000 ("Eligible Benefit Plans"). Shares of funds in the
Dreyfus Family of Funds then held by Eligible Benefit Plans will be aggregated
to determine the fee payable. The Distributor reserves the right to cease paying
these fees at any time. The Distributor will pay such fees from its own funds,
other than amounts received from the Fund, including past profits or any other
source available to it.
DREYFUS TELETRANSFER PRIVILEGE. You may purchase shares by telephone if you
have checked the appropriate box and supplied the necessary information on the
Account Application or have filed a Shareholder Services Form with the Transfer
Agent. The proceeds will be transferred between the bank account designated in
one of these documents and your fund account. Only a bank account maintained in
a domestic financial institution which is an Automated Clearing House ("ACH")
member may be so designated.
Dreyfus TELETRANSFER purchase orders may be made at any time. Purchase
orders received by 4:00 p.m., New York time, on any business day that the
Transfer Agent and the New York Stock Exchange are open for business will be
credited to the shareholder's Fund account on the next bank business day
following such purchase order. Purchase orders made after 4:00 p.m., New York
time, on any business day the Transfer Agent and the New York Stock Exchange are
open for business, or orders made on Saturday, Sunday or any Fund holiday (e.g.,
when the New York Stock Exchange is not open for business), will be credited to
the shareholder's Fund account on the second bank business day following such
purchase order. To qualify to use the Dreyfus TELETRANSFER Privilege, the
initial payment for purchase of the Fund shares must be drawn on, and redemption
proceeds paid to, the same bank and account as are designated on the Account
Application or Shareholder Services Form on file. If the proceeds of a
particular redemption are to be wired to an account at any other bank, the
request must be in writing and signature guaranteed. See "How to Redeem
Shares--TELETRANSFER Privilege."
SHAREHOLDER SERVICES PLAN
Each Fund has adopted a Shareholder Services Plan (the "Plan") pursuant to
which each Fund reimburses Dreyfus Service Corporation an amount not to exceed
the annual rate of .25% of the value of the Fund's average daily net assets. 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.
A quarterly report of the amounts expended under the Plan, and the purposes
for which such expenditures were incurred, must be made to the relevant Fund's
Board for its review. In addition, the Plan provides that material amendments of
the Plan must be approved by the relevant Fund's Board, and by the Board members
who are not "interested persons" (as defined in the 1940 Act) of such Fund or
the Manager and have no direct or indirect financial interest in the operation
of the Plan, by vote cast in person at a meeting called for the purpose of
considering such amendments. The Plan is subject to annual approval by such vote
of the Board members cast in person at a meeting called for the purpose of
voting on the Plan. The Plan was last so approved by the Fund's Board on October
20, 1998. The Plan is terminable at any time by vote of a majority of the Board
members who are not "interested persons" and have no direct or indirect
financial interest in the operation of the Plan.
For the fiscal year ended December 31, 1998, the fees payable pursuant to
the Plan by the Money Market Fund, Short Term Fund, Intermediate Term Fund and
Long Term Fund amounted to $1,468,424, $285,697, $361,925 and $300,896,
respectively.
<PAGE>
HOW TO REDEEM SHARES
CHECK REDEMPTION PRIVILEGE. Each Fund provides Redemption Checks ("Checks")
to you automatically upon opening an account unless you specifically refuse the
Check Redemption Privilege by checking the applicable "No" box on the Account
Application. Checks will be sent only to the registered owner(s) of the account
and only to the address of record. The Check Redemption Privilege may be
established for an existing account by a separate signed Shareholder Services
Form. The Account Application or Shareholder Services Form must be manually
signed by the registered owner(s). Checks are drawn on your Fund account and may
be made payable to the order of any person in the amount of $500 or more.
Dividends are earned until the Check clears. After clearance, a copy of the
Check will be returned to you. You generally will be subject to the same rules
and regulations that apply to checking accounts, although election of this
Privilege creates only a shareholder-transfer agent relationship with the
Transfer Agent.
Checks are free, but the Transfer Agent will impose a fee for stopping
payment of a Check upon your request or if the Transfer Agent cannot honor a
Check due to insufficient funds or other valid reason. If the amount of the
Check is greater than the value of the shares in your account, the Check will be
returned marked insufficient funds. Checks should not be used to close an
account.
You should date your Redemption Checks with the current date when you write
them. Please do not postdate your Redemption Checks. If you do, the Transfer
Agent will honor, upon presentment, even if presented before the date of the
check, all postdated Redemption Checks which are dated within six months of
presentment of payment, if they are otherwise in good order. For the Term Funds
only, this Privilege will be terminated immediately, without notice, with
respect to any account which is, or becomes, subject to backup withholding on
redemptions. Any Redemption Check written on an account which has become subject
to backup withholding on redemptions will not be honored by the Transfer Agent.
WIRE REDEMPTION PRIVILEGE. By using this Privilege, you authorize the
Transfer Agent to act on wire, telephone or letter redemption instructions from
any person representing himself or herself to be you and reasonably believed by
the Transfer Agent to be genuine. Ordinarily, the Fund will initiate payment for
shares redeemed pursuant to this Privilege on the next business day after
receipt by the Transfer Agent of a redemption request in proper form. Redemption
proceeds ($1,000 minimum) will be transferred by Federal Reserve wire only to
the commercial bank account specified by you on the Account Application or
Shareholder Services Form, or to a correspondent bank if your bank is not a
member of the Federal Reserve Board. Fees ordinarily are imposed by such bank
and borne by the investor. Immediate notification by the correspondent bank to
your bank is necessary to avoid a delay in crediting the funds to your bank
account.
If you have access to telegraphic equipment, you may wire redemption
requests to the Transfer Agent by employing the following transmittal code that
may be used for domestic or overseas transmissions:
Transfer Agent's
Transmittal Code Answer Back Sign
--------------------- ----------------------
144295 144295 TSSG PREP
If you do not have direct access to telegraphic equipment, you may have the
wire transmitted by contacting a TRT Cables operator at 1-800-654-7171, toll
free. You should advise the operator that the above transmittal code must be
used and should inform the operator of the Transfer Agent's answer back sign.
To change the commercial bank or account designated to receive wire
redemption proceeds, a written request must be sent to the Transfer Agent. This
request must be signed by each investor, with each signature guaranteed as
described below under "Share Certificates; Signatures."
DREYFUS TELETRANSFER PRIVILEGE. You may request by telephone that
redemption proceeds be transferred between your Fund account and your bank
account. Only a bank account maintained in a domestic financial institution
which is an ACH member may be designated. Holders of jointly registered Fund or
bank accounts may redeem through the Dreyfus TELETRANSFER Privilege for transfer
to their bank account not more than $250,000 within any 30-day period. You
should be aware that if you have selected the Dreyfus TELETRANSFER Privilege,
any request for a wire redemption will be effected as a Dreyfus TELETRANSFER
transaction through the ACH system unless more prompt transmittal specifically
is requested. Redemption proceeds will be on deposit in your account at an ACH
member bank ordinarily two business days after receipt of the redemption
request. See "How to Buy Shares--Dreyfus TeleTransfer Privilege."
SHARE CERTIFICATES; SIGNATURES. Any certificates representing Fund shares
to be redeemed must be submitted with the redemption request. Written redemption
requests must be signed by each investor, including each owner of a joint
account, and each signature must be guaranteed. Signatures on endorsed
certificates submitted for redemption also must be guaranteed. The Transfer
Agent has adopted standards and procedures pursuant to which signature
guarantees in proper form generally will be accepted from domestic banks,
brokers, dealers, credit unions, national securities exchanges, registered
securities associations, clearing agencies and savings associations, as well as
from participants in the New York Stock Exchange Medallion Signature program,
the Securities Transfer Agents Medallion Program ("STAMP"), and the Stock
Exchanges Medallion Program. Guarantees must be signed by an authorized
signatory of the guarantor and "Signature-Guaranteed" must appear with the
signature. The Transfer Agent may request additional documentation from
corporations, executors, administrators, trustees or guardians, and may accept
other suitable verification arrangements from foreign investors, such as
consular verification. For more information with respect to
signature-guarantees, please call one of the telephone numbers listed on the
cover.
REDEMPTION COMMITMENT. The Funds have committed to pay in cash all
redemption requests by any investor of record, limited in amount during any
90-day period to the lesser of $250,000 or 1% of the value of each respective
Fund's net assets at the beginning of such period. Such commitment is
irrevocable without the prior approval of the Securities and Exchange Commission
and is a fundamental policy, as to a Fund, which may not be changed without
shareholder approval of such Fund. In the case of requests for redemption in
excess of such amount, the Fund's Board reserves the right to make payments in
whole or in part in securities or other assets of such Fund in case of an
emergency or any time a cash distribution would impair the liquidity of such
Fund to the detriment of the existing investors. In such event, the securities
would be valued in the same manner as such Fund's portfolio is valued. If the
recipient sold such securities, brokerage charges might be incurred.
SUSPENSION OF REDEMPTION. As to each Fund, the right of redemption may be
suspended or the date of payment postponed (a) during any period when the New
York Stock Exchange is closed (other than customary weekend and holiday
closings), (b) when trading in the markets such Fund ordinarily utilizes is
restricted, or when an emergency exists as determined by the Securities and
Exchange Commission so that disposal of such Fund's investments or determination
of its net asset value is not reasonably practicable, or (c) for such other
periods as the Securities and Exchange Commission by order may permit to protect
such Fund's investors.
DETERMINATION OF NET ASSET VALUE
AMORTIZED COST PRICING. THE INFORMATION CONTAINED IN THIS SECTION IS
APPLICABLE ONLY TO THE MONEY MARKET FUND. The valuation of the Money Market
Fund's portfolio securities is based upon their amortized cost, which does not
take into account unrealized capital gains or losses. This involves valuing an
instrument at its cost, and thereafter assuming a constant amortization to
maturity of any discount or premium, regardless of the impact of fluctuating
interest rates on the market value of the instrument. While this method provides
certainty in valuation, it may result in periods during which value, as
determined by amortized cost, is higher or lower than the price the Fund would
receive if it sold the instrument.
The Board has established, as a particular responsibility within the
overall duty of care owed to the Money Market Fund's investors, procedures
reasonably designed to stabilize the Fund's price per share as computed for the
purpose of purchases and redemptions at $1.00. Such procedures include review of
the Fund's portfolio holdings by the Board members, at such intervals as they
deem appropriate, to determine whether the Fund's net asset value calculated by
using available market quotations or market equivalents deviates from $1.00 per
share based on amortized cost. In such review, investments for which market
quotations are readily available will be valued at the most recent bid price or
yield equivalent for such securities or for securities of comparable maturity,
quality and type, as obtained from one or more of the major market makers for
the securities to be valued. Other investments and assets will be valued at fair
value as determined by the Board members.
The extent of any deviation between the Money Market Fund's net asset value
based upon available market quotations or market equivalents and $1.00 per share
based on amortized cost will be examined by the Board. If such deviation exceeds
1/2%, the Board members will consider promptly what action, if any, will be
initiated. In the event the Board determines that a deviation exists which may
result in material dilution or other unfair results to investors or existing
investors, they have agreed to take such corrective action as they regard as
necessary and appropriate including: selling portfolio instruments prior to
maturity to realize capital gains or losses or to shorten average portfolio
maturity; paying distributions from capital or capital gains; redeeming shares
in kind; or establishing a net asset value per share by using available market
quotations or market equivalents.
VALUATION OF TERM FUND PORTFOLIO SECURITIES. Each Term Fund's investments
are valued each business day using available market quotations or at fair value
as determined by one or more independent pricing services (collectively, the
"Service") approved by the Fund's Board. The Service may use available market
quotations, employ electronic data processing techniques and/or a matrix system
to determine valuations. The Service's procedures are reviewed by the Fund's
officers under the general supervision of the Board. Expenses and fees,
including the management fee (reduced by the expense limitation, if any), are
accrued daily and are taken into account for the purpose of determining the net
asset value of Fund shares.
NEW YORK STOCK EXCHANGE CLOSINGS. The holidays (as observed) on which the
New York Stock Exchange is closed currently are: New Year's Day, Martin Luther
King Jr. Day, Presidents' Day, Good Friday, Memorial Day, Independence Day,
Labor Day, Thanksgiving and Christmas.
SHAREHOLDER SERVICES
FUND EXCHANGES. You may purchase, in exchange for shares of a Fund, shares
of certain other funds managed or administered by the Manager, to the extent
such shares are offered for sale in your state of residence. Shares of other
funds purchased by exchange will be purchased on the basis of relative net asset
value per share as follows:
A. Exchanges for shares of funds that are offered without a sales
load will be made without a sales load.
B. Shares of funds purchased without a sales load may be
exchanged for shares of other funds sold with a sales load, and the
applicable sales load will be deducted.
C. Shares of funds purchased with a sales load may be exchanged
without a sales load for shares of other funds sold without a sales
load.
D. Shares of funds purchased with a sales load, shares of funds
acquired by a previous exchange from shares purchased with a sales
load, and additional shares acquired through reinvestment of dividends
or distributions of any such funds (collectively referred to herein as
"Purchased Shares") may be exchanged for shares of other funds sold
with a sales load (referred to herein as "Offered Shares"), provided
that, if the sales load applicable to the Offered Shares exceeds the
maximum sales load that could have been imposed in connection with the
Purchased Shares (at the time the Purchased Shares were acquired),
without giving effect to any reduced loads, the difference will be
deducted.
To accomplish an exchange under item D above, you must notify the Transfer
Agent of your prior ownership of fund shares and their account number.
To request an exchange, you must give exchange instructions to the Transfer
Agent in writing or by telephone. The ability to issue exchange instructions by
telephone is given to all Fund shareholders automatically, unless you check the
applicable "No" box on the Account Application, indicating that you specifically
refuse this privilege. By using the Telephone Exchange Privilege, you authorize
the Transfer Agent to act on telephonic instructions (including over The Dreyfus
Touch(R) automated telephone system) from any person representing himself or
herself to be you and reasonably believed by the Transfer Agent to be genuine.
Telephone exchanges may be subject to limitations as to the amount involved or
number of telephone exchanges permitted. Shares issued in certificate form are
not eligible for telephone exchange.
To establish a personal retirement plan by exchange, shares of the fund
being exchanged must have a value of at least the minimum initial investment
required for the fund into which the exchange is being made.
DREYFUS AUTO EXCHANGE PRIVILEGE. Dreyfus Auto-Exchange permits you to
purchase, in exchange for shares of a Fund, shares of another fund in the
Dreyfus Family of Funds. This Privilege is available only for existing accounts.
Shares will be exchanged on the basis of relative net asset value as described
above under "Fund Exchanges." Enrollment in or modification or cancellation of
this Privilege is effective three business days following notification by you.
You will be notified if your account falls below the amount designated to be
exchanged under this Privilege. In this case, your account will fall to zero
unless additional investments are made in excess of the designated amount prior
to the next Auto-Exchange transaction. Shares held under IRA and other
retirement plans are eligible for this Privilege. Exchanges of IRA shares may be
made between IRA accounts and from regular accounts to IRA accounts, but not
from IRA accounts to regular accounts. With respect to all other retirement
accounts, exchanges may be made only among those accounts.
Shareholder Services Forms and prospectuses of the other funds may be
obtained by calling 1-800-645-6561. Shares may be exchanged only between
accounts having identical names and other identifying designations. The Fund
reserves the right to reject any exchange request in whole or in part. The Fund
Exchanges service or the Dreyfus Auto-Exchange Privilege may be modified or
terminated at any time upon notice to shareholders.
DREYFUS-AUTOMATIC ASSET BUILDER(R). Dreyfus-AUTOMATIC Asset Builder permits
you to purchase Fund shares (minimum of $100 and maximum of $150,000 per
transaction) at regular intervals selected by you. Fund shares are purchased by
transferring funds from the bank account designated by you.
DREYFUS GOVERNMENT DIRECT DEPOSIT PRIVILEGE. Dreyfus Government Direct
Deposit Privilege enables you to purchase Fund shares (minimum of $100 and
maximum of $50,000 per transaction) by having Federal salary, Social Security,
or certain veterans', military or other payments from the U.S. Government
automatically deposited into your fund account. You may deposit as much of such
payments as you elect.
DREYFUS PAYROLL SAVINGS PLAN. Dreyfus Payroll Savings Plan permits you to
purchase Fund shares (minimum of $100 per transaction) automatically on a
regular basis. Depending upon your employer's direct deposit program, you may
have part or all of your paycheck transferred to your existing Dreyfus account
electronically through the ACH system at each pay period. To establish a Dreyfus
Payroll Savings Plan account, you must file an authorization form with your
employer's payroll department. It is the sole responsibility of your employer,
not the Distributor, the Manager, the Fund, the Transfer Agent or any other
person, to arrange for transactions under the Dreyfus Payroll Savings Plan.
DREYFUS STEP PROGRAM. The Dreyfus Step Program enables you to purchase Fund
shares without regard to the Fund's minimum initial investment requirements
through Dreyfus-AUTOMATIC Asset Builder(R), Dreyfus Government Direct Deposit
Privilege or Dreyfus Payroll Savings Plan. To establish a Dreyfus Step Program
account, you must supply the necessary information on the Account Application
and file the required authorization form(s) with the Transfer Agent. For more
information concerning this Program, or to request the necessary authorization
form(s), please call toll free 1-800-782-6620. You may terminate your
participation in this Program at any time by discontinuing your participation in
Dreyfus-AUTOMATIC Asset Builder, Dreyfus Government Direct Deposit Privilege or
Dreyfus Payroll Savings Plan, as the case may be, as provided under the terms of
such Privilege(s). Each Fund may modify or terminate this Program at any time.
Investors who wish to purchase Fund shares through the Dreyfus Step Program in
conjunction with a Dreyfus-sponsored retirement plan may do so only for IRAs,
IRAs set up under a Simplified Employee Pension Plan ("SEP-IRAs") and rollover
IRAs.
DREYFUS DIVIDEND OPTIONS. Dreyfus Dividend Sweep allows you to invest
automatically your dividends or dividends and capital gain distributions, if
any, paid by a Fund in shares of another fund in the Dreyfus Family of Funds of
which you are a shareholder. Shares of other funds purchased pursuant to this
privilege will be purchased on the basis of relative net asset value per share
as follows:
A. Dividends and distributions paid by a fund may be invested
without imposition of a sales load in shares of other funds that
are offered without a sales load.
B. Dividends and distributions paid by a fund which does not
charge a sales load may be invested in shares of other funds sold
with a sales load, and the applicable load will be deducted.
C. Dividends and distributions paid by a fund that charges a
sales load may be invested in shares of other funds sold with a sales
load (referred to herein as "Offered Shares"), provided that, if the
sales load applicable to the Offered Shares exceeds the maximum sales
load charged by the fund from which dividends or distributions are
being swept, without giving effect to any reduced loads, the
difference will be deducted.
D. Dividends and distributions paid by a fund may be invested in
shares of other funds that impose a contingent deferred sales charge
("CDSC") and the applicable CDSC, if any, will be imposed upon
redemption of such shares.
Dreyfus Dividend ACH permits you to transfer electronically dividends or
dividends and capital gain distributions, if any, from the Fund to a designated
bank account. Only an account maintained at a domestic financial institution
which is an ACH member may be so designated. Banks may charge a fee for this
service.
AUTOMATIC WITHDRAWAL PLAN. The Automatic Withdrawal Plan permits you to
request withdrawal of a specified dollar amount (minimum of $50) on either a
monthly or quarterly basis if you have a $5,000 minimum account. Withdrawal
payments are the proceeds from sales of Fund shares, not the yield on the
shares. If withdrawal payments exceed reinvested distributions, the investor's
shares will be reduced and eventually may be depleted. Automatic Withdrawal may
be terminated at any time by you, the Fund or the Transfer Agent. Shares for
which certificates have been issued may not be redeemed through the Automatic
Withdrawal Plan.
CORPORATE PENSION/PROFIT-SHARING AND PERSONAL RETIREMENT PLANS. Each Fund
makes available to corporations a variety of prototype pension and
profit-sharing plans, including a 401(k) Salary Reduction Plan. In addition,
each Fund makes available Keogh Plans, IRAs (including regular IRAs, spousal
IRAs for a non-working spouse, Roth IRAs, Education IRAs, SEP-IRAs and rollover
IRAs), and 403(b)(7) Plans. Plan support services also are available.
If you wish to purchase Fund shares in conjunction with a Keogh Plan, a
403(b)(7) Plan or an IRA, including a SEP-IRA, you may request from the
Distributor forms for adoption of such plans.
The entity acting as custodian for Keogh Plans, 403(b)(7) Plans or IRAs may
charge a fee, payment of which could require the liquidation of shares. All fees
charged are described in the appropriate form.
SHARES MAY BE PURCHASED IN CONNECTION WITH THESE PLANS ONLY BY DIRECT
REMITTANCE TO THE ENTITY ACTING AS CUSTODIAN. PURCHASES FOR THESE PLANS MAY NOT
BE MADE IN ADVANCE OF RECEIPT OF FUNDS.
The minimum initial investment for corporate plans, Salary Reduction Plans,
403(b)(7) Plans and SEP-IRAs with more than one participant, is $1,000 with no
minimum for subsequent purchases. The minimum initial investment is $750 for
Dreyfus-sponsored Keogh Plans, IRAs (including regular IRAs, spousal IRAs for a
non-working spouse, Roth IRAs, SEP-IRAs, and rollover IRAs) and 403(b)(7) Plans
with only one participant and $500 for Dreyfus-sponsored Education IRAs, with no
minimum for subsequent purchases.
You should read the prototype retirement plan and the appropriate form of
custodial agreement for further details on eligibility, service fees and tax
implications, and should consult a tax adviser.
PORTFOLIO TRANSACTIONS
Portfolio securities ordinarily are purchased from government securities
dealers or market makers for the securities. Usually no brokerage commissions
are paid by the Funds for such purchases and, to date, no brokerage commissions
have been paid by any Fund.
Transactions are allocated to various dealers by each Fund's portfolio
managers in their best judgment. The primary consideration is prompt and
effective execution of orders at the most favorable price. Subject to that
primary consideration, dealers may be selected for research, statistical or
other services to enable the Manager to supplement its own research and analysis
with the views and information of other securities firms and may be selected
based upon their sales of shares of the Fund or other funds advised by the
Manager or its affiliates.
Research services furnished by brokers through which a Fund effects
securities transactions may be used by the Manager in advising other funds it
advises and, conversely, research services furnished to the Manager by brokers
in connection with other funds the Manager advises may be used by the Manager in
advising a Fund. Although it is not possible to place a dollar value on these
services, it is the opinion of the Manager that the receipt and study of such
services from brokers should not reduce the overall expenses of its research
department.
DIVIDENDS, DISTRIBUTIONS AND TAXES
Management of each Fund believes that the Fund has qualified for the fiscal
year ended December 31, 1998 as a "regulated investment company" under the
Internal Revenue Code of 1986, as amended (the "Code"). Each Fund intends to
continue to so qualify if such qualification is in the best interests of its
shareholders. As a regulated investment company, the Fund pays no Federal income
tax on net investment income and net realized capital gains to the extent that
such income and gains are distributed to shareholders. To qualify as a regulated
investment company, a Fund must distribute at least 90% of its net income
(consisting of net investment income and net short-term capital gain) to its
shareholders and meet certain asset diversification and other requirements. If a
Fund did not qualify as a regulated investment company, it would be treated for
tax purposes as an ordinary corporation subject to Federal income tax. The term
"regulated investment company" does not imply the supervision of management or
investment practices or policies by any government agency.
Each Fund ordinarily declares dividends from its net investment income on
each day the New York Stock Exchange is open for business. Each Fund's earnings
for Saturdays, Sundays and holidays are declared as dividends on the following
business day. Dividends usually are paid on the last business day of each month
and automatically are reinvested in additional Fund shares at net asset value
or, at your option, paid in cash. If you redeem all shares in your account at
any time during the month, all dividends to which you are entitled will be paid
to you along with the proceeds of the redemption. If you are an omnibus
accountholder and indicate in a partial redemption request that a portion of any
accrued dividends to which such account is entitled belongs to an underlying
accountholder who has redeemed all shares in his or her account, such portion of
the accrued dividends will be paid to you along with the proceeds of the
redemption.
The Code provides that if a shareholder holds shares of a Fund for six
months or less and has received a capital gain dividend with respect to such
shares, any loss incurred on the sale of such shares will be treated as
long-term capital loss to the extent of the capital gain dividend received. In
addition, any dividend or distribution paid shortly after an investor's purchase
may have the effect of reducing the aggregate net asset value of shares below
the cost of the investment. Such a distribution would be a return on investment
in an economic sense although taxable as stated in "Distributions and Taxes" in
the Prospectus.
Ordinarily, gains and losses realized from portfolio transactions will be
treated as capital gain or loss. However, all or a portion of any gains realized
from the sale or other disposition of certain market discount bonds will be
treated as ordinary income under Section 1276 of the Code. In addition, all or a
portion of the gain realized by the Intermediate Term Fund or Long Term Fund
from engaging in "conversion transactions" may be treated as ordinary income
under Section 1258 of the Code. "Conversion transactions" are defined to include
certain forward, futures, option and straddle transactions, transactions
marketed or sold to produce capital gains, or transactions described in Treasury
regulations to be issued in the future.
Under Section 1256 of the Code, any gain or loss realized by the
Intermediate Term Fund or Long Term Fund from certain financial futures or
forward contracts and options transactions (other than those taxed under Section
988 of the Code) will be treated as 60% long-term capital gain or loss and 40%
short-term capital gain or loss. Gain or loss will arise upon the exercise or
lapse of such futures and options as well as from closing transactions. In
addition, any such contract or option remaining unexercised at the end of the
Fund's taxable year will be treated as sold for their then fair market value,
resulting in additional gain or loss to the Fund characterized in the manner
described above.
Offsetting positions held by the Intermediate Term Fund or Long Term Fund
involving certain futures or forward contracts or options transactions may be
considered, for tax purposes, to constitute "straddles." Straddles are defined
to include "offsetting positions" in actively traded personal property. The tax
treatment of straddles is governed by Sections 1092 and 1258 of the Code, which,
in certain circumstances, override or modify the provisions of Sections 988 and
1256 of the Code. As such, all or a portion of any short- or long-term capital
gain from certain straddle transactions may be recharacterized as ordinary
income.
If the Intermediate Term Fund or Long Term Fund was treated as entering
into straddles by reason of its engaging in certain futures or forward contracts
or options transactions, such straddles could be characterized as "mixed
straddles" if the futures or forward contracts or options transactions
comprising such straddles were governed by Section 1256 of the Code. The Fund
may make one or more elections with respect to "mixed straddles." Depending upon
which election is made, if any, the results to the Fund may differ. If no
election is made, to the extent the straddle rules apply to positions
established by the Fund, losses realized by the Fund will be deferred to the
extent of unrealized gain in any offsetting positions. Moreover, as a result of
the straddle and conversion transaction rules, short-term capital loss on
straddle positions may be recharacterized as long-term capital loss, and
long-term capital gain on straddle positions may be treated as short-term
capital gain or ordinary income.
The Taxpayer Relief Act of 1997 included constructive sale provisions that
generally apply if the Intermediate Term Fund or Long Term Fund either (1) holds
an appreciated financial position with respect to stock, certain debt
obligations, or partnership interests ("appreciated financial position") and
then enters into a short sale, futures or forward contract or offsetting
notional principal contract (collectively, a "Contract") with respect to the
same or substantially identical property or (2) holds an appreciated financial
position that is a Contract and then acquires property that is the same as, or
substantially identical to, the underlying property. In each instance, with
certain exceptions, the Fund generally will be taxed as if the appreciated
financial position were sold at its fair market value on the date the Fund
enters into the financial position or acquires the property, respectively.
Transactions that are identified hedging or straddle transactions under other
provisions of the Code can be subject to the constructive sale provisions.
Investment by a Term Fund in securities issued or acquired at a discount,
or providing for deferred interest or for payment of interest in the form of
additional obligations could under special tax rules, affect the amount, timing
and character of distributions to shareholders by causing the Fund to recognize
income prior to the receipt of cash payments. For example, the Term Fund could
be required to accrue a portion of the discount (or deemed discount) at which
the securities were issued each year and to distribute such income in order to
maintain its qualification as a regulated investment company. In such case, the
Term Fund may have to dispose of securities which it might otherwise have
continued to hold in order to generate cash to satisfy these distribution
requirements.
YIELD AND PERFORMANCE INFORMATION
MONEY MARKET FUND. For the seven-day period ended December 31, 1998, the
Money Market Fund's yield was 4.06% and effective yield was 4.14%. Yield is
computed in accordance with a standardized method which involves determining the
net change in the value of a hypothetical pre-existing Fund account having a
balance of one share at the beginning of a seven calendar day period for which
yield is to be quoted, dividing the net change by the value of the account at
the beginning of the period to obtain the base period return, and annualizing
the results (i.e., multiplying the base period return by 365/7). The net change
in the value of the account reflects the value of additional shares purchased
with dividends declared on the original share and any such additional shares and
fees that may be charged to investor accounts, in proportion to the length of
the base period and the Fund's average account size, but does not include
realized gains and losses or unrealized appreciation and depreciation. Effective
yield is computed by adding 1 to the base period return (calculated as described
above), raising that sum to a power equal to 365 divided by 7, and subtracting 1
from the result.
TERM FUNDS. The Short Term Fund's, Intermediate Term Fund's and Long Term
Fund's current yield for the 30-day period ended December 31, 1998 was 4.11%,
4.26% and 4.50%, respectively. These yields reflect the waiver of a portion of
the management fee charged each Term Fund, without which the Short Term Fund's,
Intermediate Term Fund's and Long Term Fund's yield for the 30-day period ended
December 31, 1998 would have been 4.05%, 4.08%, and 4.34%, respectively. See
"Management of the Funds" in the Prospectus. Although the Long Term Fund's yield
may generally be higher than comparable short-or intermediate-term income funds,
its price per share may fluctuate more than those funds. Current yield is
computed pursuant to a formula which operates as follows: The amount of a Fund's
expenses accrued for the 30-day period (net of reimbursements) is subtracted
from the amount of the dividends and interest earned (computed in accordance
with regulatory requirements) by the Fund during the period. That result is then
divided by the product of: (a) the average daily number of shares outstanding
during the period that were entitled to receive dividends, and (b) the net asset
value per share on the last day of the period less any undistributed earned
income per share reasonably expected to be declared as a dividend shortly
thereafter. The quotient is then added to 1, and that sum is raised to the 6th
power, after which 1 is subtracted. The current yield is then arrived at by
multiplying the result by 2.
The Short Term Fund's average annual total return for 1, 5 and 10 year
periods ended December 31, 1998 was 6.14%, 5.41% and 7.27%, respectively. The
Short Term Fund's average annual total return for the 7.26 year period beginning
with the effectiveness of the Short Term Fund's current investment objective,
fundamental policies and investment restrictions on October 1, 1991 through
December 31, 1998 was 6.28%. The Intermediate Term Fund's average annual total
return for the 1, 5 and 10 year periods ended December 31, 1998 was 7.61%, 5.83%
and 8.36%, respectively. The Long Term Fund's average annual total return for
the 1, 5 and 10 year periods ended December 31, 1998 was 10.77%, 7.20% and
10.08%, respectively. Average annual total return is calculated by determining
the ending redeemable value of an investment purchased with a hypothetical
$1,000 payment made at the beginning of the period (assuming the reinvestment of
dividends and distributions), dividing by the amount of the initial investment,
taking the "n"th root of the quotient (where "n" is the number of years in the
period) and subtracting 1 from the result.
The Short Term Fund's total return for the period September 10, 1987
(commencement of operations) through December 31, 1998 and the period October 1,
1991 through December 31, 1998, was 131.19% and 55.54%, respectively. The
Intermediate Term Fund's total return for the period March 27, 1987
(commencement of operations) through December 31, 1998 was 139.00%. The Long
Term Fund's total return for the period March 27, 1987 (commencement of
operations) through December 31, 1998 was 169.92%. Total return is calculated by
subtracting the amount of the Fund's net asset value per share at the beginning
of a stated period from the net asset value per share at the end of the period
(after giving effect to the reinvestment of dividends and distributions during
the period), and dividing the result by the net asset value per share at the
beginning of the period.
Performance figures for each Term Fund reflect the fact that prior to May
1, 1998, the Term Funds' then-existing management policies required each Term
Fund to invest only in U.S. Treasury securities. In addition, for purposes of
advertising, calculations of average annual total return and calculations of
total return for each Term Fund will take into account the performance of its
corresponding predecessor Fund--namely, Dreyfus 100% U.S. Treasury Short Term
Fund, L.P., Dreyfus 100% U.S. Treasury Intermediate Term Fund, L.P. and Dreyfus
100% U.S. Treasury Long Term Fund, L.P.--the assets and liabilities of which
were transferred to the relevant Fund in exchange for shares of such Fund on
December 31, 1993.
ALL FUNDS. Tax equivalent yield is computed by dividing that portion of the
current yield (calculated as described above) which is tax exempt by 1 minus a
stated tax rate and adding the quotient to that portion, if any, of the yield of
the Fund that is not tax-exempt.
Yields will fluctuate and are not necessarily representative of future
results. The investor should remember that yield is a function of the type and
quality of the instruments in the portfolio, portfolio maturity and operating
expenses. An investor's principal in a Fund is not guaranteed. See
"Determination of Net Asset Value" for a discussion of the manner in which the
Money Market Fund's price per share is determined.
Comparative performance information may be used from time to time in
advertising or marketing a Fund's shares, including data from Lipper Analytical
Services, Inc., Bank Rate Monitor(TM), N. Palm Beach, Fla. 33408, IBC's Money
Fund Report(TM), CDA Investment Technologies, Inc., Wiesenberger Investment
Companies Services, Moody's Bond Survey Bond Index, Morningstar, Inc. and other
industry publications.
From time to time, advertising materials for each Fund may refer to or
discuss then-current or past economic conditions, developments and/or events,
including those related to or arising from actual or proposed tax legislation.
Advertising materials for each Fund also may refer to statistical or other
information concerning trends related to investment companies, as compiled by
industry associations such as the Investment Company Institute or Morningstar
ratings and related analyses supporting the ratings. Advertising materials for
each Fund may occasionally include information about other similar Dreyfus
funds. In addition, advertising material for the Fund also may include
biographical information relating to its portfolio managers and may refer to, or
include commentary by, a portfolio manager relating to investment strategy,
asset growth, current or past business, political, economic or financial
conditions and other matters of general interest to investors.
Each Fund may use hypothetical tax equivalent yields or charts in its
advertising. These hypothetical yields or charts will be used for illustrative
purposes only and are not indicative of the Fund's past or future performance.
INFORMATION ABOUT THE FUNDS
Each Fund share has one vote and, when issued and paid for in accordance
with the terms of the offering, is fully paid and non-assessable. Fund shares
are of one class and have equal rights as to dividends and in liquidation. Fund
shares have no preemptive, subscription or conversion rights and are freely
transferable.
Unless otherwise required by the 1940 Act, ordinarily it will not be
necessary for each Fund to hold annual meetings of shareholders. As a result,
shareholders may not consider each year the election of Board members or the
appointment of auditors. However, the holders of at least 10% of the shares
outstanding and entitled to vote may require the Fund to hold a special meeting
of shareholders for purposes of removing a Board member from office.
Shareholders may remove a Board member by the affirmative vote of two-thirds of
the Fund's outstanding voting shares. In addition, the Board will call a meeting
of shareholders for the purpose of electing Board members if, at any time, less
than a majority of the Board members then holding office have been elected by
shareholders.
Under Massachusetts law, shareholders could, under certain circumstances,
be held personally liable for the obligations of the Fund of which they are
shareholders. However, each Fund's Agreement and Declaration of Trust ("Trust
Agreement") disclaims shareholder liability for acts or obligations of the
relevant Fund and requires that notice of such disclaimer be given in each
agreement, obligation or instrument entered into or executed by the Fund or a
Board member. Each Trust Agreement provides for indemnification from the
respective Fund's property for all losses and expenses of any shareholder held
personally liable for the obligations of the Fund. Thus, the risk of a
shareholder incurring financial loss on account of shareholder liability is
limited to circumstances in which the Fund itself would be unable to meet its
obligations, a possibility which management believes is remote. Upon payment of
any liability incurred by a Fund, the shareholder paying such liability will be
entitled to reimbursement from the general assets of such Fund. Each Fund
intends to conduct its operations in such a way so as to avoid, as far as
possible, ultimate liability of the shareholders for liabilities of the Fund.
Each Term Fund is intended to be a long-term investment vehicle and is not
designed to provide investors with a means of speculating on short-term market
movements. A pattern of frequent purchases and exchanges can be disruptive to
efficient portfolio management and, consequently, can be detrimental to a Term
Fund's performance and its shareholders. Accordingly, if a Term Fund's
management determines that an investor is following a market-timing strategy or
is otherwise engaging in excessive trading, the Fund, with or without prior
notice, may temporarily or permanently terminate the availability of Fund
Exchanges, or reject in whole or part of any purchase or exchange request, with
respect to such investor's account. Such investors also may be barred from
purchasing other funds in the Dreyfus Family of Funds. Generally, an investor
who makes more than four exchanges out of the Fund during any calendar year or
who makes exchanges that appear to coincide with a market-timing strategy may be
deemed to be engaged in excessive trading. Accounts under common ownership or
control will be considered as one account for purposes of determining a pattern
of excessive trading. In addition, a Term Fund may refuse or restrict purchase
or exchange requests by any person or group if, in the judgment of the Fund's
management, the Fund would be unable to invest the money effectively in
accordance with its investment objective and policies or could otherwise be
adversely affected or if the Fund receives or anticipates receiving simultaneous
orders that may significantly affect the Fund (e.g., amounts equal to 1% or more
of the Fund's total assets). If an exchange request is refused, the Fund will
take no other action with respect to the shares until it receives further
instructions from the investor. A Term Fund may delay forwarding redemption
proceeds for up to seven days if the investor redeeming shares is engaged in
excessive trading or if the amount of the redemption request otherwise would be
disruptive to efficient portfolio management or would adversely affect the Fund.
The Funds' policy on excessive trading applies to investors who invest in the
Funds directly or through financial intermediaries, but does not apply to the
Dreyfus Auto-Exchange Privilege, to any automatic investment or withdrawal
privilege described herein, or to participants in employer-sponsored retirement
plans.
During times of drastic economic or market conditions, a Term Fund may
suspend Fund Exchanges temporarily without notice and treat exchange requests
based on their separate components--redemption orders with a simultaneous
request to purchase the other fund's shares. In such a case, the redemption
request would be processed at the Fund's next determined net asset value but the
purchase order would be effective only at the net asset value next determined
after the fund being purchased receives the proceeds of the redemption, which
may result in the purchase being delayed.
To offset the relatively higher costs of servicing smaller accounts, each
Fund will charge regular accounts with balances below $2,000 an annual fee of
$12. The valuation of accounts and the deductions are expected to take place
during the last four months of each year. The fee will be waived for any
investor whose aggregate Dreyfus mutual fund investments total at least $25,000,
and will not apply to IRA accounts or to accounts participating in automatic
investment programs or opened through a securities dealer, bank or other
financial institution, or to other fiduciary accounts.
Each Fund sends annual semi-annual financial statements to all its
shareholders.
Effective October 1, 1991, the Short Term Fund changed its investment
objective from that of providing investors with as high a level of current
income, free of U.S. Federal income tax and U.S. tax withholding requirements
for qualifying foreign investors, as is consistent with the preservation of
capital by investing in obligations of the U.S. Government and its agencies and
instrumentalities, to its current investment objective. Effective October 24,
1991, the Intermediate Term Fund and the Long Term Fund each changed their
investment objective from that of providing investors with as high a level of
current income as is consistent with the preservation of capital by investing in
obligations of the U.S. Government and its agencies and instrumentalities that
provide interest income exempt from state and local income taxes, to its current
investment objective. Effective May 15, 1998, each Term Fund changed its
management policies from investing solely in U.S. Treasury securities to its
present management policies.
COUNSEL AND INDEPENDENT AUDITORS
Stroock & Stroock & Lavan LLP, 180 Maiden Lane, New York, New York
10038-4982, as counsel for each Fund, has rendered its opinion as to certain
legal matters regarding the due authorization and valid issuance of the shares
being sold pursuant to the Funds' combined Prospectus.
Ernst & Young L.L.P., independent auditors, 787 Seventh Avenue, New York,
New York 10019, have been selected as independent auditors of each Fund.
<PAGE>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
PART C. OTHER INFORMATION
-------------------------
Item 23. Exhibits
- ------- ----------
(a) Registrant's Agreement and Declaration of Trust is incorporated by
reference to Exhibit (1) of Post-Effective Amendment No. 9 to the
Registration Statement on Form N-1A, filed on October 31, 1993.
(b) Registrant's By-Laws, as amended, are incorporated by reference to
Exhibit (2) of Post-Effective Amendment No. 9 to the Registration
Statement on Form N-1A, filed on October 31, 1993.
(d) Management Agreement is incorporated by reference to Exhibit (5) of
Post-Effective Amendment No. 13 to the Registration Statement on Form
N-1A, filed on March 1, 1995.
(e) Distribution Agreement is incorporated by reference to Exhibit (6) of
Post-Effective Amendment No. 13 to the Registration Statement on Form
N-1A, filed on March 1, 1995.
(g) Amended and Restated Custody Agreement is incorporated by reference to
Exhibit 8(a) of Post-Effective Amendment No. 9 to the Registration
Statement on Form N-1A, filed on October 31, 1993.
(h) Shareholder Services Plan is incorporated by reference to Exhibit (9)
of Post-Effective Amendment No. 13 to the Registration Statement on
Form N-1A, filed on March 1, 1995.
(i) Opinion and consent of Registrant's counsel is incorporated by
reference to Exhibit (10) of Post-Effective Amendment No. 11 to the
Registration Statement on Form N-1A, filed on April 14, 1994.
(j) Consent of Independent Auditors.
(n) Financial Data Schedule.
Other Exhibits
--------------
(a) Powers of Attorney of the Board members and officers are
incorporated by reference to Other Exhibits (a) of Post-
Effective Amendment No. 20 to the Registration Statement on
Form N-1A, filed on May 1, 1998.
(b) Certificate of Secretary is incorporated by reference to
Other Exhibits (b) of Post-Effective Amendment No. 20 to
the Registration Statement on Form N-1A, filed on
May 1, 1998.
Item 24. Persons Controlled by or under Common Control with Registrant.
- ------- --------------------------------------------------------------
Not Applicable
Item 25. Indemnification
- ------- ---------------
The Statement as to the general effect of any contract, arrangements
or statute under which a director, officer, underwriter or affiliated
person of the Registrant is insured or indemnified in any manner
against any liability which may be incurred in such capacity, other
than insurance provided by any director, officer, affiliated person or
underwriter for their own protection, is incorporated by reference to
Item 27 of Part C of Post-Effective Amendment No. 20 to
the Registration Statement on Form N-1A, filed on May 1, 1998.
Reference is also made to the Distribution Agreement attached as
Exhibit (6) of Post-Effective Amendment No. 13 to the Registration
Statement on Form N-1A, filed on March 1, 1995.
Item 26. Business and Other Connections of Investment Adviser.
- ------- ----------------------------------------------------
The Dreyfus Corporation ("Dreyfus") and subsidiary companies comprise
a financial service organization whose business consists primarily of
providing investment management services as the investment adviser and
manager for sponsored investment companies registered under the
Investment Company Act of 1940 and as an investment adviser to
institutional and individual accounts. Dreyfus also serves as sub-
investment adviser to and/or administrator of other investment
companies. Dreyfus Service Corporation, a wholly-owned subsidiary of
Dreyfus, serves primarily as a registered broker-dealer. Dreyfus
Investment Advisors, Inc., another wholly-owned subsidiary, provides
investment management services to various pension plans, institutions
and individuals.
<TABLE>
<CAPTION>
Officers and Directors of Investment Adviser
<S> <C> <C> <C>
Name and Position
With Dreyfus Other Businesses Position Held Dates
Christopher M. Condron Franklin Portfolio Associates, LLC* Director 1/97 - Present
Chairman of the Board and
Chief Executive Officer
TBCAM Holdings, Inc.* Director 10/97 - Present
President 10/97 - 6/98
Chairman 10/97 - 6/98
The Boston Company Director 1/98 - Present
Asset Management, LLC* Chairman 1/98 - 6/98
President 1/98 - 6/98
The Boston Company President 9/95 - 1/98
Asset Management, Inc.* Chairman 4/95 - 1/98
Pareto Partners Partner Representative 11/95 - 5/97
271 Regent Street
London, England W1R 8PP
Franklin Portfolio Holdings, Inc.* Director 1/97 - Present
Certus Asset Advisors Corp.** Director 6/95 -Present
Mellon Capital Management Director 5/95 -Present
Corporation***
Mellon Bond Associates, LLP+ Executive Committee 1/98 - Present
Member
Mellon Bond Associates+ Trustee 5/95 -1/98
Mellon Equity Associates, LLP+ Executive Committee 1/98 - Present
Member
Mellon Equity Associates+ Trustee 5/95 - 1/98
Boston Safe Advisors, Inc.* Director 5/95 - Present
President 5/95 - Present
Mellon Bank, N.A. + Director 1/99 - Present
Chief Operating Officer 3/98 - Present
President 3/98 - Present
Vice Chairman 11/94 - 3/98
Mellon Bank Corporation+ Chief Operating Officer 1/99 - Present
President 1/99 - Present
Director 1/98 - Present
Vice Chairman 11/94 - 1/99
The Boston Company, Inc.* Vice Chairman 1/94 - Present
Director 5/93 - Present
Laurel Capital Advisors, LLP+ Exec. Committee 1/98 - 8/98
Member
Laurel Capital Advisors+ Trustee 10/93 - 1/98
Boston Safe Deposit and Trust Director 5/93 -Present
Company*
The Boston Company Financial President 6/89 - Present
Strategies, Inc. * Director 6/89 - Present
Mandell L. Berman Self-Employed Real Estate Consultant, 11/74 - Present
Director 29100 Northwestern Highway Residential Builder and
Suite 370 Private Investor
Southfield, MI 48034
Burton C. Borgelt DeVlieg Bullard, Inc. Director 1/93 - Present
Director 1 Gorham Island
Westport, CT 06880
Mellon Bank Corporation+ Director 6/91 - Present
Mellon Bank, N.A. + Director 6/91 - Present
Dentsply International, Inc. Director 2/81 - Present
570 West College Avenue
York, PA
Quill Corporation Director 3/93 - Present
Lincolnshire, IL
Stephen E. Canter Dreyfus Investment Chairman of the Board 1/97 - Present
President, Chief Operating Advisors, Inc.++ Director 5/95 - Present
Officer, Chief Investment President 5/95 - Present
Officer, and Director
Newton Management Limited Director 2/99 - Present
London, England
Mellon Bond Associates, LLP+ Executive Committee 1/99 - Present
Member
Mellon Equity Associates, LLP+ Executive Committee 1/99 - Present
Member
Franklin Portfolio Associates, LLC* Director 2/99 - Present
Franklin Portfolio Holdings, Inc.* Director 2/99 - Present
The Boston Company Asset Director 2/99 - Present
Management, LLC*
TBCAM Holdings, Inc.* Director 2/99 - Present
Mellon Capital Management Director 1/99 - Present
Corporation***
Founders Asset Management, LLC Member, Board of 12/97 - Present
2930 East Third Ave. Managers
Denver, CO 80206 Acting Chief Executive 7/98 - 12/98
Officer
The Dreyfus Trust Company+++ Director 6/ 95 - Present
Thomas F. Eggers Dreyfus Service Corporation++ Executive Vice President 4/96 - Present
Vice Chairman - Institutional Director 9/96 - Present
and Director
Founders Asset Management, LLC Member, Board of 2/99 - Present
2930 East Third Avenue Managers
Denver, CO 80206
Steven G. Elliott Mellon Bank Corporation+ Senior Vice Chairman 1/99 - Present
Director Chief Financial Officer 1/90 - Present
Vice Chairman 6/92 - 1/99
Treasurer 1/90 - 5/98
Mellon Bank, N.A.+ Senior Vice Chairman 3/98 - Present
Vice Chairman 6/92 - 3/98
Chief Financial Officer 1/90 - Present
Mellon EFT Services Corporation Director 10/98 - Present
Mellon Bank Center, 8th Floor
1735 Market Street
Philadelphia, PA 19103
Mellon Financial Services Director 1/96 - Present
Corporation #1 Vice President 1/96 - Present
Mellon Bank Center, 8th Floor
1735 Market Street
Philadelphia, PA 19103
Boston Group Holdings, Inc.* Vice President 5/93 - Present
APT Holdings Corporation Treasurer 12/87 - Present
Pike Creek Operations Center
4500 New Linden Hill Road
Wilmington, DE 19808
Allomon Corporation Director 12/87 - Present
Two Mellon Bank Center
Pittsburgh, PA 15259
Collection Services Corporation Controller 10/90 - 2/99
500 Grant Street Director 9/88 - 2/99
Pittsburgh, PA 15258 Vice President 9/88 - 2/99
Treasurer 9/88 - 2/99
Mellon Financial Company+ Principal Exec. Officer 1/88 - Present
Chief Financial Officer 8/87 - Present
Director 8/87 - Present
President 8/87 - Present
Mellon Overseas Investments Director 4/88 - Present
Corporation+ Chairman 7/89 - 11/97
President 4/88 - 11/97
Chief Executive Officer 4/88 - 11/97
Mellon International Investment Director 9/89 - 8/97
Corporation+
Mellon Financial Services Treasurer 12/87 - Present
Corporation # 5+
Mellon Financial Markets, Inc.+ Director 1/99 - Present
Mellon Financial Services Director 1/99 - Present
Corporation #17
Fort Lee, NJ
Mellon Mortgage Company Director 1/99 - Present
Houston, TX
Mellon Ventures, Inc. + Director 1/99 - Present
Lawrence S. Kash Dreyfus Investment Director 4/97 - Present
Vice Chairman Advisors, Inc.++
And Director
Dreyfus Brokerage Services, Inc. Chairman 11/97 - Present
401 North Maple Ave. Chief Executive Officer 11/97 - Present
Beverly Hills, CA
Dreyfus Service Corporation++ Director 1/95 - 2/99
President 9/96 - 3/99
Dreyfus Precious Metals, Inc.++ + Director 3/96 - 12/98
President 10/96 - 12/98
Dreyfus Service Director 12/94 - Present
Organization, Inc.++ President 1/97 - Present
Seven Six Seven Agency, Inc. ++ Director 1/97 - Present
Dreyfus Insurance Agency of Chairman 5/97 - Present
Massachusetts, Inc.++++ President 5/97 - Present
Director 5/97 - Present
The Dreyfus Trust Company+++ Chairman 1/97 - 1/99
President 2/97 - 1/99
Chief Executive Officer 2/97 - 1/99
Director 12/94 - Present
The Dreyfus Consumer Credit Chairman 5/97 - Present
Corporation++ President 5/97 - Present
Director 12/94 - Present
Founders Asset Management, LLC Member, Board of 12/97 - Present
2930 East Third Avenue Managers
Denver, CO. 80206
The Boston Company Advisors, Chairman 12/95 - Present
Inc. Chief Executive Officer 12/95 - Present
Wilmington, DE President 12/95 - Present
The Boston Company, Inc.* Director 5/93 - Present
President 5/93 - Present
Mellon Bank, N.A.+ Executive Vice President 6/92 - Present
Laurel Capital Advisors, LLP+ Chairman 1/98 - 8/98
Executive Committee 1/98 - 8/98
Member
Chief Executive Officer 1/98 - 8/98
President 1/98 - 8/98
Laurel Capital Advisors, Inc. + Trustee 12/91 - 1/98
Chairman 9/93 - 1/98
President and CEO 12/91 - 1/98
Boston Group Holdings, Inc.* Director 5/93 - Present
President 5/93 - Present
Martin G. McGuinn Mellon Bank Corporation+ Chairman 1/99 - Present
Director Chief Executive Officer 1/99 - Present
Director 1/98 - Present
Vice Chairman 1/90 - 1/99
Mellon Bank, N. A. + Chairman 3/98 - Present
Chief Executive Officer 3/98 - Present
Director 1/98 - Present
Vice Chairman 1/90 - 3/98
Mellon Leasing Corporation+ Vice Chairman 12/96 - Present
Mellon Bank (DE) National Director 4/89 - 12/98
Association
Wilmington, DE
Mellon Bank (MD) National Director 1/96 - 4/98
Association
Rockville, Maryland
Mellon Financial Vice President 9/86 - 10/97
Corporation (MD)
Rockville, Maryland
J. David Officer Dreyfus Service Corporation++ Executive Vice President 5/98 - Present
Vice Chairman Director 3/99 - Present
And Director
Dreyfus Insurance Agency of Director 5/98 - Present
Massachusetts, Inc.++++
Seven Six Seven Agency, Inc.++ Director 10/98 - Present
Mellon Residential Funding Corp. + Director 4/97 - Present
Mellon Trust of Florida, N.A. Director 8/97 - Present
2875 Northeast 191st Street
North Miami Beach, FL 33180
Mellon Bank, NA+ Executive Vice President 7/96 - Present
The Boston Company, Inc.* Vice Chairman 1/97 - Present
Director 7/96 - Present
Mellon Preferred Capital Director 11/96 - Present
Corporation*
RECO, Inc.* President 11/96 - Present
Director 11/96 - Present
The Boston Company Financial President 8/96 - Present
Services, Inc.* Director 8/96 - Present
Boston Safe Deposit and Trust Director 7/96 - Present
Company* President 7/96 - 1/99
Mellon Trust of New York Director 6/96 - Present
1301 Avenue of the Americas
New York, NY 10019
Mellon Trust of California Director 6/96 - Present
400 South Hope Street
Suite 400
Los Angeles, CA 90071
Mellon Bank, N.A.+ Executive Vice President 2/94 - Present
Mellon United National Bank Director 3/98 - Present
1399 SW 1st Ave., Suite 400
Miami, Florida
Boston Group Holdings, Inc.* Director 12/97 - Present
Dreyfus Financial Services Corp. + Director 9/96 - Present
Dreyfus Investment Services Director 4/96 - Present
Corporation+
Richard W. Sabo Founders Asset Management LLC President 12/98 - Present
Director 2930 East Third Avenue Chief Executive Officer 12/98 - Present
Denver, CO. 80206
Prudential Securities Senior Vice President 07/91 - 11/98
New York, NY Regional Director 07/91 - 11/98
Richard F. Syron American Stock Exchange Chairman 4/94 - Present
Director 86 Trinity Place Chief Executive Officer 4/94 - Present
New York, NY 10006
Ronald P. O'Hanley Franklin Portfolio Holdings, Inc.* Director 3/97 - Present
Vice Chairman
TBCAM Holdings, Inc.* Chairman 6/98 - Present
Director 10/97 - Present
The Boston Company Asset Chairman 6/98 - Present
Management, LLC* Director 1/98 - 6/98
The Boston Company Asset Director 2/97 - 12/97
Management, Inc. *
Boston Safe Advisors, Inc.* Chairman 6/97 - Present
Director 2/97 - Present
Pareto Partners Partner Representative 5/97 - Present
271 Regent Street
London, England W1R 8PP
Mellon Capital Management Director 5/97 -Present
Corporation***
Certus Asset Advisors Corp.** Director 2/97 - Present
Mellon Bond Associates+ Trustee 2/97 - Present
Chairman 2/97 - Present
Mellon Equity Associates+ Trustee 2/97 - Present
Chairman 2/97 - Present
Mellon-France Corporation+ Director 3/97 - Present
Laurel Capital Advisors+ Trustee 3/97 - Present
Mark N. Jacobs Dreyfus Investment Director 4/97 - Present
General Counsel, Advisors, Inc.++ Secretary 10/77 - 7/98
Vice President, and
Secretary The Dreyfus Trust Company+++ Director 3/96 - Present
The TruePenny Corporation++ President 10/98 - Present
Director 3/96 - Present
Dreyfus Service Director 3/97 - Present
Organization, Inc.++
William H. Maresca The Dreyfus Trust Company+++ Director 3/97 - Present
Controller
Dreyfus Service Corporation++ Chief Financial Officer 12/98 - Present
Dreyfus Consumer Credit Corp. ++ Treasurer 10/98 -Present
Dreyfus Investment Treasurer 10/98 - Present
Advisors, Inc. ++
Dreyfus-Lincoln, Inc. Vice President 10/98 - Present
4500 New Linden Hill Road
Wilmington, DE 19808
The TruePenny Corporation++ Vice President 10/98 - Present
Dreyfus Precious Metals, Inc. +++ Treasurer 10/98 - 12/98
The Trotwood Corporation++ Vice President 10/98 - Present
Trotwood Hunters Corporation++ Vice President 10/98 - Present
Trotwood Hunters Site A Corp. ++ Vice President 10/98 - Present
Dreyfus Transfer, Inc. Chief Financial Officer 5/98 - Present
One American Express Plaza,
Providence, RI 02903
Dreyfus Service Assistant Treasurer 3/93 - Present
Organization, Inc.++
Dreyfus Insurance Agency of Assistant Treasurer 5/98 - Present
Massachusetts, Inc.++++
William T. Sandalls, Jr. Dreyfus Transfer, Inc. Chairman 2/97 - Present
Executive Vice President One American Express Plaza,
Providence, RI 02903
Dreyfus Service Corporation++ Director 1/96 - Present
Executive Vice President 2/97 - Present
Chief Financial Officer 2/97-12/98
Dreyfus Investment Director 1/96 - Present
Advisors, Inc.++ Treasurer 1/96 - 10/98
Dreyfus-Lincoln, Inc. Director 12/96 - Present
4500 New Linden Hill Road President 1/97 - Present
Wilmington, DE 19808
Seven Six Seven Agency, Inc.++ Director 1/96 - 10/98
Treasurer 10/96 - 10/98
The Dreyfus Consumer Director 1/96 - Present
Credit Corp.++ Vice President 1/96 - Present
Treasurer 1/97 - 10/98
Dreyfus Partnership President 1/97 - 6/97
Management, Inc.++ Director 1/96 - 6/97
Dreyfus Service Organization, Director 1/96 - 6/97
Inc.++ Executive Vice President 1/96 - 6/97
Treasurer 10/96- Present
Dreyfus Insurance Agency of Director 5/97 - Present
Massachusetts, Inc.++++ Treasurer 5/97- Present
Executive Vice President 5/97 - Present
Diane P. Durnin Dreyfus Service Corporation++ Senior Vice President - 5/95 - 3/99
Vice President - Product Marketing and Advertising
Development Division
Patrice M. Kozlowski None
Vice President - Corporate
Communications
Mary Beth Leibig None
Vice President -
Human Resources
Theodore A. Schachar Dreyfus Service Corporation++ Vice President -Tax 10/96 - Present
Vice President - Tax
Dreyfus Investment Advisors, Inc.++ Vice President - Tax 10/96 - Present
Dreyfus Precious Metals, Inc. +++ Vice President - Tax 10/96 - 12/98
Dreyfus Service Organization, Inc.++ Vice President - Tax 10/96 - Present
Wendy Strutt None
Vice President
Richard Terres None
Vice President
Andrew S. Wasser Mellon Bank Corporation+ Vice President 1/95 - Present
Vice-President -
Information Systems
James Bitetto The TruePenny Corporation++ Secretary 9/98 - Present
Assistant Secretary
Dreyfus Service Corporation++ Assistant Secretary 8/98 - Present
Dreyfus Investment Assistant Secretary 7/98 - Present
Advisors, Inc.++
Dreyfus Service Assistant Secretary 7/98 - Present
Organization, Inc.++
Steven F. Newman Dreyfus Transfer, Inc. Vice President 2/97 - Present
Assistant Secretary One American Express Plaza Director 2/97 - Present
Providence, RI 02903 Secretary 2/97 - Present
Dreyfus Service Secretary 7/98 - Present
Organization, Inc.++ Assistant Secretary 5/98 - 7/98
_______________________________
* The address of the business so indicated is One Boston Place, Boston, Massachusetts, 02108.
** The address of the business so indicated is One Bush Street, Suite 450, San Francisco, California 94104.
*** The address of the business so indicated is 595 Market Street, Suite 3000, San Francisco, California 94105.
+ The address of the business so indicated is One Mellon Bank Center, Pittsburgh, Pennsylvania 15258.
++ The address of the business so indicated is 200 Park Avenue, New York, New York 10166.
+++ The address of the business so indicated is 144 Glenn Curtiss Boulevard, Uniondale, New York 11556-0144.
++++ The address of the business so indicated is 53 State Street, Boston, Massachusetts 02109.
</TABLE>
<PAGE>
Item 27. Principal Underwriters
- -------- ----------------------
(a) Other investment companies for which Registrant's principal
underwriter (exclusive distributor) acts as principal underwriter or exclusive
distributor:
1) Comstock Partners Funds, Inc.
2) Dreyfus A Bonds Plus, Inc.
3) Dreyfus Appreciation Fund, Inc.
4) Dreyfus Asset Allocation Fund, Inc.
5) Dreyfus Balanced Fund, Inc.
6) Dreyfus BASIC GNMA Fund
7) Dreyfus BASIC Money Market Fund, Inc.
8) Dreyfus BASIC Municipal Fund, Inc.
9) Dreyfus BASIC U.S. Government Money Market Fund
10) Dreyfus California Intermediate Municipal Bond Fund
11) Dreyfus California Tax Exempt Bond Fund, Inc.
12) Dreyfus California Tax Exempt Money Market Fund
13) Dreyfus Cash Management
14) Dreyfus Cash Management Plus, Inc.
15) Dreyfus Connecticut Intermediate Municipal Bond Fund
16) Dreyfus Connecticut Municipal Money Market Fund, Inc.
17) Dreyfus Florida Intermediate Municipal Bond Fund
18) Dreyfus Florida Municipal Money Market Fund
19) The Dreyfus Fund Incorporated
20) Dreyfus Global Bond Fund, Inc.
21) Dreyfus Global Growth Fund
22) Dreyfus GNMA Fund, Inc.
23) Dreyfus Government Cash Management Funds
24) Dreyfus Growth and Income Fund, Inc.
25) Dreyfus Growth and Value Funds, Inc.
26) Dreyfus Growth Opportunity Fund, Inc.
27) Dreyfus Debt and Equity Funds
28) Dreyfus Index Funds, Inc.
29) Dreyfus Institutional Money Market Fund
30) Dreyfus Institutional Preferred Money Market Fund
31) Dreyfus Institutional Short Term Treasury Fund
32) Dreyfus Insured Municipal Bond Fund, Inc.
33) Dreyfus Intermediate Municipal Bond Fund, Inc.
34) Dreyfus International Funds, Inc.
35) Dreyfus Investment Grade Bond Funds, Inc.
36) Dreyfus Investment Portfolios
37) The Dreyfus/Laurel Funds, Inc.
38) The Dreyfus/Laurel Funds Trust
39) The Dreyfus/Laurel Tax-Free Municipal Funds
40) Dreyfus LifeTime Portfolios, Inc.
41) Dreyfus Liquid Assets, Inc.
42) Dreyfus Massachusetts Intermediate Municipal Bond Fund
43) Dreyfus Massachusetts Municipal Money Market Fund
44) Dreyfus Massachusetts Tax Exempt Bond Fund
45) Dreyfus MidCap Index Fund
46) Dreyfus Money Market Instruments, Inc.
47) Dreyfus Municipal Bond Fund, Inc.
48) Dreyfus Municipal Cash Management Plus
49) Dreyfus Municipal Money Market Fund, Inc.
50) Dreyfus New Jersey Intermediate Municipal Bond Fund
51) Dreyfus New Jersey Municipal Bond Fund, Inc.
52) Dreyfus New Jersey Municipal Money Market Fund, Inc.
53) Dreyfus New Leaders Fund, Inc.
54) Dreyfus New York Insured Tax Exempt Bond Fund
55) Dreyfus New York Municipal Cash Management
56) Dreyfus New York Tax Exempt Bond Fund, Inc.
57) Dreyfus New York Tax Exempt Intermediate Bond Fund
58) Dreyfus New York Tax Exempt Money Market Fund
59) Dreyfus U.S. Treasury Intermediate Term Fund
60) Dreyfus U.S. Treasury Long Term Fund
61) Dreyfus 100% U.S. Treasury Money Market Fund
62) Dreyfus U.S. Treasury Short Term Fund
63) Dreyfus Pennsylvania Intermediate Municipal Bond Fund
64) Dreyfus Pennsylvania Municipal Money Market Fund
65) Dreyfus Premier California Municipal Bond Fund
66) Dreyfus Premier Equity Funds, Inc.
67) Dreyfus Premier International Funds, Inc.
68) Dreyfus Premier GNMA Fund
69) Dreyfus Premier Worldwide Growth Fund, Inc.
70) Dreyfus Premier Municipal Bond Fund
71) Dreyfus Premier New York Municipal Bond Fund
72) Dreyfus Premier State Municipal Bond Fund
73) Dreyfus Premier Value Fund
74) Dreyfus Short-Intermediate Government Fund
75) Dreyfus Short-Intermediate Municipal Bond Fund
76) The Dreyfus Socially Responsible Growth Fund, Inc.
77) Dreyfus Stock Index Fund, Inc.
78) Dreyfus Tax Exempt Cash Management
79) The Dreyfus Third Century Fund, Inc.
80) Dreyfus Treasury Cash Management
81) Dreyfus Treasury Prime Cash Management
82) Dreyfus Variable Investment Fund
83) Dreyfus Worldwide Dollar Money Market Fund, Inc.
84) Founders Funds, Inc.
85) General California Municipal Bond Fund, Inc.
86) General California Municipal Money Market Fund
87) General Government Securities Money Market Fund, Inc.
88) General Money Market Fund, Inc.
88) General Municipal Bond Fund, Inc.
90) General Municipal Money Market Funds, Inc.
91) General New York Municipal Bond Fund, Inc.
92) General New York Municipal Money Market Fund
(b)
Positions and
Name and principal Positions and offices with offices with
business address the Distributor Registrant
- ------------------ --------------------------- -------------
Marie E. Connolly+ Director, President, Chief President and
Executive Officer and Chief Treasurer
Compliance Officer
Joseph F. Tower, III+ Director, Senior Vice President, Vice President
Treasurer and Chief Financial and Assistant
Officer Treasurer
Mary A. Nelson+ Vice President Vice President
and Assistant
Treasurer
Jean M. O'Leary+ Assistant Vice President, None
Assistant Secretary and
Assistant Clerk
William J. Nutt+ Chairman of the Board None
Patrick W. McKeon+ Vice President None
Joseph A. Vignone+ Vice President None
- --------------------------------
+ Principal business address is 60 State Street, Boston, Massachusetts 02109.
<PAGE>
Item 28. Location of Accounts and Records
- ------- --------------------------------
1. First Data Investor Services Group, Inc.,
a subsidiary of First Data Corporation
P.O. Box 9671
Providence, Rhode Island 02940-9671
2. The Bank of New York
90 Washington Street
New York, New York 10286
3. Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, Rhode Island 02940-9671
4. The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
Item 29. Management Services
- ------- -------------------
Not Applicable
Item 30. Undertakings
- ------- ------------
None
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Amendment to the Registration
Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly
caused this Amendment to the Registration Statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of New York, and
State of New York on the 30th day of April, 1999.
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
--------------------------------------------
(Registrant)
BY: /s/Marie E. Connolly*
----------------------------
Marie E. Connolly, PRESIDENT
Pursuant to the requirements of the Securities Act of 1933, this Amendment
to the Registration Statement has been signed below by the following persons in
the capacities and on the date indicated.
Signature Title Date
- -------------------------- ------------------- ----------
/s/ Marie E. Connolly* President and Treasurer (Principal 4/30/99
- --------------------- Executive Officer)
Marie E. Connolly
/s/ Joseph F. Tower, III* Vice President and Assistant 4/30/99
- ------------------------ Treasurer (Principal Financial
Joseph F. Tower, III and Accounting Officer)
/s/ Joseph S. DiMartino* Chairman of the Board 4/30/99
- ------------------------
Joseph S. DiMartino
/s/ Gordon J. Davis* Board Member 4/30/99
- --------------------------
Gordon J. Davis
/s/ David P. Feldman* Board Member 4/30/99
- --------------------------
David P. Feldman
/s/ Lynn Martin* Board Member 4/30/99
- --------------------------
Lynn Martin
/s/ Daniel Rose* Board Member 4/30/99
- --------------------------
Daniel Rose
/s/ Philip L. Toia* Board Member 4/30/99
- --------------------------
Philip L. Toia
/s/ Sander Vanocur* Board Member 4/30/99
- --------------------------
Sander Vanocur
/s/ Anne Wexler* Board Member 4/30/99
- --------------------------
Anne Wexler
/s/ Rex Wilder* Board Member 4/30/99
- --------------------------
Rex Wilder
*BY: /s/ Stephanie D. Pierce
----------------------------------
Stephanie D. Pierce,
Attorney-in-Fact
<PAGE>
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
Post-Effective Amendment No. 22 to
Registration Statement on Form N-1A under
the Securities Act of 1933 and
the Investment Company Act of 1940
-----------
EXHIBITS
-----------
INDEX TO EXHIBITS
Page
(j) Consent of Independent Auditors.................................
(n) Financial Data Schedule.........................................
EXHIBIT (j)
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the captions "Financial
Highlights" and "Counsel and Independent Auditors" and to the use of our report
dated February 5, 1999, which is incorporated by reference, in this
Registration Statement (Form N-1A No. 33-00823) of Dreyfus 100% U.S. Treasury
Money Market Fund.
ERNST & YOUNG LLP
New York, New York
April 26, 1999
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 779128
<NAME> DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 1,119,873
<INVESTMENTS-AT-VALUE> 1,119,873
<RECEIVABLES> 15,881
<ASSETS-OTHER> 7,661
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,143,415
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 832
<TOTAL-LIABILITIES> 832
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,142,929
<SHARES-COMMON-STOCK> 1,142,640
<SHARES-COMMON-PRIOR> 1,203,852
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (346)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,142,583
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 58,042
<OTHER-INCOME> 0
<EXPENSES-NET> 8,357
<NET-INVESTMENT-INCOME> 49,685
<REALIZED-GAINS-CURRENT> (153)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 49,532
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (49,685)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,045,849
<NUMBER-OF-SHARES-REDEEMED> (1,154,201)
<SHARES-REINVESTED> 47,140
<NET-CHANGE-IN-ASSETS> (61,365)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (192)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,565
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,357
<AVERAGE-NET-ASSETS> 1,112,976
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .045
<PER-SHARE-GAIN-APPREC> .00
<PER-SHARE-DIVIDEND> (.045)
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .008
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
