DREYFUS 100% U.S. TREASURY LONG TERM FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
The fixed income markets have come almost full circle since our last
correspondence. In our letter dated January 30, 1995, we stated our
optimistic outlook for 1995. In accordance with our increased optimism, we
extended the average maturity of your Fund. The Fund was positioned
defensively with an average maturity of approximately 12.84 years as of
January 31, 1995. By the end of February, the portfolio had an average
maturity of 24.33 years -- a maturity structure that has benefited the Fund
greatly. So, it is with pleasure that we are able to report a total return of
15.15% for the period from December 31, 1994 through June 30, 1995.*
Currently, market prices for short-term government securities include the
anticipation of a Federal Reserve Board easing of another 25 basis points.
Two-year Treasury Notes are now yielding approximately 5.91% (compared to a
yield of 7.23% on January 30, 1995). Now that these short-term Notes are
trading below the Fed Funds rate, which is 6%, market prices reflect the
belief that another interest rate cut is imminent.
We stated in our last correspondence, "We are more optimistic about 1995.
In our view, the prospective real rate of return for Treasury securities
makes fixed income investments attractive." In short, the market gains that
we expected for 1995 have already occurred. At this time, we feel it is
premature to anticipate a large number of interest rate moves by the Fed.
With this in mind, prudence dictates that we position the Fund slightly more
defensively than we have been. During the first half of 1995, the average
life of your Fund's portfolio, at its longest, was about 24 years. We have
since lowered that to approximately 17 years.
Fundamentally, our views remain consistent with a slowing, low-inflation
economy. As always, we are seeking out the securities that represent the best
value within your Fund's Prospectus guidelines. Because your Fund does not
use any derivatives or speculative trading techniques, it is important that
we constantly reassess what securities represent the best value, and adjust
your Fund accordingly.
In closing, we thank you for investing in Dreyfus 100% U.S. Treasury Long
Term Fund. We want to assure you that we at Dreyfus will remain steadfast in
our goal of continuing to provide you with an attractive, quality fund.
Sincerely,
Gerald E. Thunelius
Portfolio Manager
August 4, 1995
New York, N.Y.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY LONG TERM FUND
STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-98.5% AMOUNT VALUE
---------------- --------------
<S> <C> <C>
U.S. TREASURY BONDS-91.7%
11 5/8%, 11/15/2004..................................................... $ 7,500,000 $ 10,312,500
12%, 5/15/2005.......................................................... 8,000,000 11,323,752
10 3/4%, 8/15/2005...................................................... 10,000,000 13,281,250
12%, 8/15/2013.......................................................... 5,600,000 8,261,753
12 1/2%, 8/15/2014...................................................... 9,600,000 14,811,005
11 1/4%, 2/15/2015...................................................... 6,500,000 9,755,077
9 1/4%, 2/15/2016....................................................... 22,450,000 28,795,627
8 3/4%, 5/15/2020....................................................... 10,000,000 12,412,500
7 5/8%, 2/15/2025....................................................... 15,000,000 16,945,320
--------------
125,898,784
--------------
U.S. TREASURY NOTES-3.5%
7 1/2%, 10/31/1999...................................................... 1,500,000 1,584,609
7 1/2%, 2/15/2005....................................................... 3,000,000 3,267,657
--------------
4,852,266
--------------
U.S. TREASURY PRINCIPAL STRIPS-3.3%
Zero Coupon, 8/15/2020.................................................. 25,000,000 4,466,925
--------------
TOTAL BONDS AND NOTES
(cost $130,251,424)..................................................... $135,217,975
==============
SHORT-TERM INVESTMENTS-0.0%
U.S. TREASURY BILLS;
5.42%, 8/31/1995
(cost $2,972)........................................................... $ 3,000 $ 2,972
==============
TOTAL INVESTMENTS
(cost $130,254,396)..................................................... 98.5% $135,220,947
======== ==============
CASH AND RECEIVABLES (NET).................................................. 1.5% $ 2,052,312
======== ==============
NET ASSETS ................................................................ 100.0% $137,273,259
======== ==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY LONG TERM FUND
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $130,254,396)-see statement..................................... $135,220,947
Receivable for investment securities sold............................... 10,020,460
Interest receivable..................................................... 3,042,344
Prepaid expenses........................................................ 29,725
--------------
148,313,476
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 67,810
Payable for investment securities purchased............................. 10,445,909
Payable for shares of Beneficial Interest redeemed...................... 105,708
Accrued expenses and other liabilities.................................. 420,790 11,040,217
------------- --------------
NET ASSETS ................................................................ $137,273,259
==============
REPRESENTED BY:
Paid-in capital......................................................... $152,516,941
Accumulated net realized (loss) on investments.......................... (20,210,233)
Accumulated net unrealized appreciation on investments-Note 3........... 4,966,551
--------------
NET ASSETS at value applicable to 9,304,818 outstanding shares of Beneficial
Interest, equivalent to $14.75 per share (unlimited number of $.001 par
value sharesauthorized)..................................................... $137,273,259
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY LONG TERM FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 5,063,211
EXPENSES:
Management fee-Note 2(a).............................................. $ 383,224
Shareholder servicing costs-Note 2(b)................................. 143,763
Professional fees..................................................... 19,737
Trustees' fees and expenses-Note 2(c)................................. 16,690
Registration fees..................................................... 16,306
Custodian fees........................................................ 10,359
Miscellaneous......................................................... 3,281
---------------
TOTAL EXPENSES.................................................... 593,360
---------------
INVESTMENT INCOME-NET............................................. 4,469,851
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $5,341,129
Net unrealized appreciation on investments.............................. 8,423,327
---------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 13,764,456
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $18,234,307
===============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY LONG TERM FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995
1994 (UNAUDITED)
----------------- -------------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 11,129,616 $ 4,469,851
Net realized gain (loss) on investments.............................. (25,551,362) 5,341,129
Net unrealized appreciation (depreciation) on investments for the period (2,076,853) 8,423,327
----------------- -------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.... (16,498,599) 18,234,307
----------------- -------------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................ (11,102,928) (4,496,539)
----------------- -------------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................ 58,191,635 26,046,519
Dividends reinvested................................................. 7,256,324 2,791,858
Cost of shares redeemed.............................................. (129,600,253) (28,705,978)
----------------- -------------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS (64,152,294) 132,399
----------------- -------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ (91,753,821) 13,870,167
NET ASSETS:
Beginning of period.................................................. 215,156,913 123,403,092
----------------- -------------------
End of period (including undistributed investment income-net;
$26,688 in 1994)................................................... $ 123,403,092 $ 137,273,259
================= ===================
SHARES SHARES
----------------- -------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 4,079,099 1,866,133
Shares issued for dividends reinvested............................... 510,169 199,718
Shares redeemed...................................................... (9,008,124) (2,067,773)
----------------- -------------------
NET (DECREASE) IN SHARES OUTSTANDING............................... (4,418,856) (1,922)
================= ===================
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY LONG TERM FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1995
---------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
------- --------- --------- --------- --------- -------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.56 $13.26 $14.42 $14.37 $15.68 $13.26
------- --------- --------- --------- --------- -------------------
INVESTMENT OPERATIONS:
Investment income-net.......... 1.17 1.14 1.08 1.03 1.01 .48
Net realized and unrealized gain
(loss) on investments........ (.30) 1.16 (.05) 1.31 (2.42) 1.50
------- --------- --------- --------- --------- -------------------
TOTAL FROM
INVESTMENT OPERATIONS.... .87 2.30 1.03 2.34 (1.41) 1.98
------- --------- --------- --------- --------- -------------------
DISTRIBUTIONS;
Dividends from investment
income-net................... (1.17) (1.14) (1.08) (1.03) (1.01) (.49)
------- --------- --------- --------- --------- -------------------
Net asset value, end of period. $13.26 $14.42 $14.37 $15.68 $13.26 $ 14.75
======= ========= ========= ========= ========= ===================
TOTAL INVESTMENT RETURN............ 7.02% 18.28% 7.55% 16.59% (9.18%) 30.55%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets........... -- .25% .56% .78% .98% .93%(1)
Ratio of net investment income to
average net assets........... 9.05% 8.34% 7.63% 6.65% 7.08% 7.00%(1)
Decrease reflected in above expense
ratios due to undertakings by
the Manager................ 1.28% .72% .39% .09% -- --
Portfolio Turnover Rate........ 30.68% 21.01% 97.46% 420.68% 1,213.04% 445.63%(2)
Net Assets, end of period
(000's Omitted).............. $42,525 $217,422 $238,839 $215,157 $123,403 $137,273
(1) Annualized.
(2) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS 100% U.S. TREASURY LONG TERM FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Premier Mutual Fund
Services, Inc., (the "Distributor") acts as the distributor of the Fund's
shares which are sold to the public without a sales charge. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
(A) PORTFOLIO VALUATION: The Fund's investments are valued at the mean
between the quoted bid and asked prices.
(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, including, where applicable, amortization of discount on investments,
is recognized on the accrual basis.
(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. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately
$22,995,000 available for Federal income tax purposes to be applied against
future net securities profits, if any, realized subsequent to December 31,
1994. The carryover does not include net realized securities losses from
November 1, 1994 through December 31, 1994 which are treated, for Federal
income tax purposes, as arising in fiscal 1995. If not applied, the carryover
expires in fiscal 2002.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full year. The most stringent state
expense limitation applicable to the Fund presently requires reimbursement of
expenses in any full year that such expenses (exclusive of certain expenses
as described above) exceed
21\2% of the first $30 million, 2% of the next $70 million and 11\2% of the
excess over $100 million of the
DREYFUS 100% U.S. TREASURY LONG TERM FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
average value of the Fund's net assets in accordance with California "blue
sky" regulations. There was no expense reimbursement for the six months ended
June 30, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for servicing 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 six months ended June 30, 1995, the Fund was charged an
aggregate of $75,114 pursuant to the Shareholder Services Plan.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
other than short-term securities, during the six months ended June 30, 1995,
amounted to $575,364,063 and $556,900,499 respectively.
At June 30, 1995, accumulated net unrealized appreciation on investments
was $4,966,551, consisting of $5,196,905 gross unrealized appreciation and
$230,354 gross unrealized depreciation.
At June 30, 1995, 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).
DREYFUS 100% U.S. TREASURY LONG TERM FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS 100% U.S. TREASURY LONG TERM FUND
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus 100% U.S. Treasury Long Term Fund, including the statement of
investments, as of June 30, 1995, and the related statements of operations
and changes in net assets and financial highlights for the six months ended
June 30, 1995. These financial statements and financial highlights are the
responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1994 and financial highlights for each of the five years in the
period ended December 31, 1994 and in our report dated February 6, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst & Young LLP...Signature Logo)
New York, New York
August 1, 1995
DREYFUS 100% U.S. TREASURY
LONG TERM FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 073SA956
100% U.S. Treasury
Long Term Fund
Semi-Annual
Report
June 30, 1995
(Dreyfus Logo)
