Dreyfus
100% U.S. Treasury
Money Market Fund
SEMIANNUAL REPORT June 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
7 Statement of Assets and Liabilities
8 Statement of Operations
9 Statement of Changes in Net Assets
10 Financial Highlights
11 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus 100% U.S. Treasury
Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus 100% U.S. Treasury
Money Market Fund, covering the six-month period from January 1, 2000 through
June 30, 2000. Inside, you'll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Bernard W. Kiernan, Jr.
When the reporting period began, international and domestic economies were
growing rapidly, giving rise to concerns that long-dormant inflationary
pressures might reemerge. Consumers continued to spend heavily, unemployment
levels reached new lows and the stock market, while highly volatile, generally
continued to climb.
Because robust economic growth may trigger an acceleration of inflation, the
Federal Reserve Board raised key short-term interest rates three times during
the reporting period, for a total increase of 1.00 percentage points. These
interest-rate hikes contributed to a total interest-rate increase of 1.75
percentage points since late June 1999, before the current reporting period
began. While these economic influences generally adversely affected longer term
bonds, they positively influenced money market yields.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus 100% U.S. Treasury Money Market Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
July 17, 2000
DISCUSSION OF FUND PERFORMANCE
Bernard W. Kiernan, Jr., Portfolio Manager
How did Dreyfus 100% U.S. Treasury Money Market Fund perform during the period?
For the six-month period ended June 30, 2000, the fund produced an annualized
yield of 4.89% which, taking into account the effect of compounding, created an
annualized effective yield of 5.00%.(1)
What is the fund's investment approach?
The fund seeks to maintain a stable share price of $1.00. To pursue this goal,
the fund invests only in U.S. Treasury securities.
What factors influenced the fund's performance?
The money market continued to digest mixed signals from the economy as the
reporting period began. The Open Market Committee of the Federal Reserve Board
(the "Fed") had acted to relieve inflationary pressures and raised interest
rates three times in 2000 for a total increase of 1.00 percentage points. Each
tightening brought renewed debate as to whether rates were sufficiently high to
ease growth and head off inflation, or whether further tightening would be
necessary.
The economic data for late 1999 illustrated that Gross Domestic Product ("GDP")
growth had quickened to 7.3% for the fourth quarter, influencing the
interest-rate hikes made by the Fed during the reporting period. Concern mounted
that economic growth was accelerating considerably past a limit that could be
sustained without triggering destructive levels of inflation.
Preliminary first quarter 2000 figures showed GDP growth slowing but it was
still strong at 5.4%. Continuing indications that prices, most notably in the
energy sector, were moving higher added to the money market's concerns. Greater
than expected domestic demand for goods and services continued. Events overseas
have also had an impact on
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
inflation. Following the Asian economic crisis of 1998, demand outside the U.S.
weakened, enabling the U.S. economy to grow at an unusually fast pace without
setting off commodity inflation. As overseas economies have recovered, demand
for raw materials has picked up as well, creating upward price pressure.
Through much of the first half of 2000, consumer confidence and consumer
spending showed few signs of abating in response to gradual and relatively mild
rate hikes. Home and auto sales continue at record paces through the first
quarter and into the second quarter of 2000. The tightest U.S. labor market in
the past 30 years added the threat of wage-driven inflation. Such price and wage
factors led the Fed to its largest rate hike in its current credit tightening
cycle: a 0.50 percentage-point increase at its May 16th meeting.
More recently, we have seen signs that the Fed's series of rate hikes may have
begun to slow the economy. Retail sales declined in both April and May, housing
starts have slowed dramatically, and inflation figures through early 2000
appeared to be lower than market expectations. As a result, the Fed chose not to
tighten rates further at its June 28th meeting.
But economic signals remain contradictory; it is not clear that the economy has
yet cooled sufficiently for the Fed to consider its job done. Immediately
following the Fed's June meeting, economic reports indicated that, although
growth may be slowing, inflation may be higher than previously thought. While
indexes measuring demand for housing and labor fell back in May, the personal
consumption expenditures price index for first quarter 2000 was adjusted upward,
from 3.1% to 3.5%. This measure, closely followed by Federal Reserve Chairman
Alan Greenspan, generally is considered by many to be among the best gauges of
inflation and could indicate that the Fed's concern over "heightened inflation
pressure" may lead to a further tightening when the Fed meets again in August.
What is the fund's current strategy?
As of June 30, 2000, the fund's average maturity remained longer than the
industry average for all treasury money market funds. We will continue to
monitor the situation, including the economy and changes in the Fed's monetary
policy, and we will look to take what we believe are appropriate actions in
response with respect to the fund's portfolio, including its average portfolio
maturity.
July 17, 2000
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS
FLUCTUATE. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR
THE U.S. GOVERNMENT. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
The Fund
June 30, 2000 (Unaudited)
<TABLE>
STATEMENT OF INVESTMENTS
Annualized
Yield on
Date of Principal
U.S. TREASURY BILLS--29.1% Purchase (%) Amount ($) Value ($)
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<S> <C> <C> <C>
7/6/2000 5.69 3,481,000 3,478,274
7/13/2000 5.72 16,390,000 16,359,175
7/20/2000 5.70 7,160,000 7,138,780
8/3/2000 5.80 2,647,000 2,633,121
8/10/2000 6.05 2,491,000 2,474,504
8/17/2000 5.79 6,243,000 6,196,451
8/24/2000 5.78 151,843,000 150,545,101
8/31/2000 5.64 3,020,000 2,991,548
9/7/2000 5.83 2,410,000 2,383,847
9/21/2000 5.76 8,185,000 8,079,114
10/12/2000 5.82 1,791,000 1,761,689
11/30/2000 6.20 76,000,000 74,071,964
1/4/2001 6.07 19,795,000 19,206,039
TOTAL U.S. TREASURY BILLS
(cost $297,319,607) 297,319,607
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U.S. TREASURY NOTES--69.5%
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6.125%, 7/31/2000 5.84 31,270,000 31,273,222
6.00%, 8/15/2000 5.74 5,180,000 5,180,188
8.75%, 8/15/2000 5.88 260,000,000 260,846,285
6.25%, 8/31/2000 5.91 200,000,000 200,037,922
4.00%, 10/31/2000 6.30 15,000,000 14,881,301
5.75%, 11/15/2000 6.17 130,000,000 129,718,758
4.625%, 11/30/2000 6.30 70,000,000 69,497,596
TOTAL U.S. TREASURY NOTES
(cost $711,435,272) 711,435,272
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TOTAL INVESTMENTS (cost $1,008,754,879) 98.6% 1,008,754,879
CASH AND RECEIVABLES (NET) 1.4% 14,242,586
NET ASSETS 100.0% 1,022,997,465
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 1,008,754,879 1,008,754,879
Interest receivable 14,985,134
Prepaid expenses and other assets 43,254
1,023,783,267
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 454,359
Cash overdraft due to Custodian 219,918
Accrued expenses 111,525
785,802
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NET ASSETS ($) 1,022,997,465
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 1,023,010,037
Accumulated net realized gain (loss) on investments (12,572)
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NET ASSETS ($) 1,022,997,465
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial
Interest authorized) 1,022,721,263
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2000 (Unaudited)
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INVESTMENT INCOME ($):
INTEREST INCOME 29,935,742
EXPENSES:
Management fee--Note 2(a) 2,672,184
Shareholder servicing costs--Note 2(b) 922,735
Custodian fees 40,857
Trustees' fees and expenses--Note 2(c) 36,489
Registration fees 26,829
Prospectus and shareholders' reports 25,437
Professional fees 18,567
Miscellaneous 5,265
TOTAL EXPENSES 3,748,363
INVESTMENT INCOME--NET 26,187,379
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NET REALIZED GAIN (LOSS) ON INVESTMENTS-NOTE 1(B) ($): 394,596
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 26,581,975
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 2000 Year Ended
(Unaudited) December 31, 1999
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OPERATIONS ($):
Investment income--net 26,187,379 44,845,198
Net realized gain (loss) from investments 394,596 (61,191)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 26,581,975 44,784,007
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DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (26,187,379) (44,845,198)
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BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold 547,612,142 1,066,213,178
Dividends reinvested 24,900,613 42,769,116
Cost of shares redeemed (656,038,010) (1,145,375,828)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (83,525,255) (36,393,534)
TOTAL INCREASE (DECREASE) IN NET ASSETS (83,130,659) (36,454,725)
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NET ASSETS ($):
Beginning of Period 1,106,128,124 1,142,582,849
END OF PERIOD 1,022,997,465 1,106,128,124
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Six Months Ended
June 30, 2000
(Unaudited) Year Ended December 31,
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1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .024 .041 .045 .046 .046 .051
Distributions:
Dividends from
investment
income--net (.024) (.041) (.045) (.046) (.046) (.051)
Net asset value,
end of period 1.00 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) 4.93(a) 4.17 4.55 4.74 4.67 5.19
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .70(a) .71 .75 .71 .73 .69
Ratio of net investment
income to average
net assets 4.89(a) 4.10 4.46 4.64 4.55 5.09
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Net Assets,end of period
($ x 1,000) 1,022,997 1,106,128 1,142,583 1,203,948 1,286,854 1,310,691
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus 100% U.S. Treasury Money Market Fund (the "fund") is registered under
the Investment Company Act of 1940, as amended (the "Act"), as a diversified
open-end management investment company. The fund's investment objective is to
provide investors with as high a level of current income as is consistent with
the preservation of capital and the maintenance of liquidity by investing in
obligations of the U.S. Treasury that provide interest income exempt from state
and local income taxes. The Dreyfus Corporation (the "Manager") serves as the
fund' s investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A, which is a wholly-owned subsidiary of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares, which
are sold to the public without a sales charge. Prior to March 22, 2000, Premier
Mutual Fund Services, Inc. was the distributor.
It is the fund's policy to maintain a continuous net asset value per share of
$1.00; the fund has adopted certain investment, portfolio valuation and dividend
and distribution policies to enable it to do so. There is no assurance, however,
that the fund will be able to maintain a stable net asset value per share of
$1.00.
The fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities are valued at amortized cost,
which has been determined by the fund's Board of Trustees to represent the fair
value of the fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income is
recognized on the accrual basis. Cost of investments repre-
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
sents amortized cost. Under the terms of the custody agreement, the fund
receives net earnings credits based on available cash balances left on deposit.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
"Code"). To the extent that the net realized capital gain can be offset by
capital loss carryovers, it is the policy of the fund not to distribute such
gain.
(D) FEDERAL INCOME TAXES: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $403,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1999. This
amount is calculated based on Federal income tax regulations which may differ
from financial reporting in accordance with generally accepted accounting
principles. If not applied, $13,000 of the carryover expires in fiscal 2003,
$153,000 expires in fiscal 2004, $23,000 expires in fiscal 2005, $75,000 expires
in fiscal 2006 and $139,000 expires in fiscal 2007.
At June 30, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
NOTE 2--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .50 of 1% of the value of the fund's average
daily net assets and is payable monthly.
(B) Under the Shareholder Services Plan, the fund reimburses DSC an amount not
to exceed an annual rate of .25 of 1% of the value of the fund's average daily
net assets for certain allocated expenses of providing personal services and/or
maintaining shareholder accounts. The services provided may include personal
services relating to shareholder accounts, such as answering shareholder
inquiries regarding the fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. During the period
ended June 30, 2000, the fund was charged $649,631 pursuant to the Shareholder
Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended June 30, 2000, the fund was charged $159,109 pursuant to the transfer
agency agreement.
(C) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $30,000 and an attendance fee of $4,000 for each in person meeting
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The Chairman of the Board receives an additional 25% of such
compensation. Prior to April 11, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the fund an annual fee
of $4,500 and an attendance fee of $500 per meeting. The Chairman of the Board
received an additional 25% of such compensation. Subject to the fund's Emeritus
Program Guidelines, Emeritus Board members, if any, receive 50% of the fund's
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
The Fund
For More Information
Dreyfus 100% U.S. Treasury Money Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 071SA006
