File Nos. 33-00824
811-4428
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. 17 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 17 [X]
(Check appropriate box or boxes.)
DREYFUS 100% U.S. TREASURY INTERMEDIATE TERM 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, 1997 pursuant to paragraph (b)
----
60 days after filing pursuant to paragraph (a)(i)
----
on (date) pursuant to paragraph (a)(i)
----
75 days after filing pursuant to paragraph (a)(ii)
----
on (date) pursuant to paragraph (a)(ii) 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.
----
Registrant has registered an indefinite number of shares of its
beneficial interest under the Securities Act of 1933 pursuant to
Section 24(f) of the Investment Company Act of 1940. Registrant's Rule
24f-2 Notice for the fiscal year ended December 31, 1996 was filed on
February 10, 1997.
DREYFUS 100% U.S. TREASURY INTERMEDIATE TERM FUND
Cross-Reference Sheet Pursuant to Rule 495(a)
Items in
Part A of
Form N-1A Caption Page
_________ _______ ____
1 Cover Page Cover
2 Synopsis 3
3 Condensed Financial Information 3
4 General Description of Registrant 7
5 Management of the Fund 8
5(a) Management's Discussion of Fund's Performance *
6 Capital Stock and Other Securities 19
7 Purchase of Securities Being Offered 9
8 Redemption or Repurchase 15
9 Pending Legal Proceedings *
Items in
Part B of
Form N-1A
- ---------
10 Cover Page Cover
11 Table of Contents Cover
12 General Information and History *
13 Investment Objectives and Policies B-2
14 Management of the Fund B-4
15 Control Persons and Principal B-8
Holders of Securities
16 Investment Advisory and Other B-8
Services
_____________________________________
NOTE: * Omitted since answer is negative or inapplicable.
DREYFUS 100% U.S. TREASURY INTERMEDIATE TERM FUND
Cross-Reference Sheet Pursuant to Rule 495(a) (continued)
Items in
Part B of
Form N-1A Caption Page
_________ _______ _____
17 Brokerage Allocation B-19
18 Capital Stock and Other Securities B-22
19 Purchase, Redemption and Pricing B-12, B-13, *
of Securities Being Offered
20 Tax Status *
21 Underwriters B-12
22 Calculations of Performance Data B-20
23 Financial Statements B-40
Items in
Part C of
Form N-1A
_________
24 Financial Statements and Exhibits C-1
25 Persons Controlled by or Under C-3
Common Control with Registrant
26 Number of Holders of Securities C-3
27 Indemnification C-3
28 Business and Other Connections of C-4
Investment Adviser
29 Principal Underwriters C-9
30 Location of Accounts and Records C-12
31 Management Services C-12
32 Undertakings C-12
_____________________________________
NOTE: * Omitted since answer is negative or inapplicable.
FOR USE BY BANKS ONLY
May 1, 1997
DREYFUS 100% U.S. TREASURY FUNDS
Dreyfus 100% U.S. Treasury Money Market Fund
Dreyfus 100% U.S. Treasury Short Term Fund
Dreyfus 100% U.S. Treasury Intermediate Term Fund
Dreyfus 100% U.S. Treasury Long Term Fund
Supplement to Combined Prospectus
Dated May 1, 1997
All mutual fund shares involve certain investment risks, including
the possible loss of principal.
USTF/s050197BNK
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COMBINED PROSPECTUS May 1, 1997
Dreyfus 100% U.S. Treasury Funds
- ------------------------------------------------------------------------------
Each of Dreyfus 100% U.S. Treasury Money Market Fund, Dreyfus 100%
U.S. Treasury Short Term Fund, Dreyfus 100% U.S. Treasury Intermediate Term
Fund and Dreyfus 100% U.S. Treasury Long Term Fund (each, a "Fund" and
collectively, the "Funds") is an open-end, diversified, management investment
company known as a no-load mutual fund. Each Fund's investment objective is
to provide you with as high a level of current income as is consistent with
the preservation of capital and, for the money market fund only, with the
maintenance of liquidity. Each Fund pursues its objective by investing in
obligations of the U.S. Treasury that provide interest income exempt from
state and local taxes in each state. The Funds differ in average portfolio
maturity, which in turn affects their level of income and degree of share
price fluctuation.
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND (the "MONEY MARKET FUND") is a
money market fund that seeks to maintain a stable share price of $1.00. AN
INVESTMENT IN THE MONEY MARKET FUND IS NEITHER INSURED NOR GUARANTEED BY THE
U.S. GOVERNMENT. THERE CAN BE NO ASSURANCE THAT THE MONEY MARKET FUND WILL BE
ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
DREYFUS 100% U.S. TREASURY SHORT TERM FUND (the "SHORT TERM FUND") seeks to
provide you with a higher level of current income than the MONEY MARKET FUND,
and greater price stability than the INTERMEDIATE TERM FUND. The
dollar-weighted average maturity of its portfolio is expected to range
between two and three years.
DREYFUS 100% U.S. TREASURY INTERMEDIATE TERM FUND (the "INTERMEDIATE TERM
FUND") seeks to provide you with a higher level of current income than the
SHORT TERM FUND, and greater price stability than the LONG TERM FUND. The
dollar-weighted average maturity of its portfolio is expected to range
between three and seven years.
DREYFUS 100% U.S. TREASURY LONG TERM FUND (the "LONG TERM FUND") seeks to
provide you with a higher level of current income than the INTERMEDIATE TERM
FUND. Its price per share should be expected to fluctuate more than the
INTERMEDIATE TERM FUND'S price per share. The dollar-weighted average maturity
of its portfolio is expected to exceed ten years.
EACH FUND IS A SEPARATE MASSACHUSETTS BUSINESS TRUST WITH A
SEPARATE PORTFOLIO. THE OPERATIONS AND RESULTS OF ONE FUND ARE UNRELATED TO
THOSE OF EACH OTHER FUND. THIS COMBINED PROSPECTUS HAS BEEN PREPARED FOR YOUR
CONVENIENCE TO PROVIDE YOU THE OPPORTUNITY TO CONSIDER FOUR INVESTMENT
CHOICES IN ONE DOCUMENT.
The Dreyfus Corporation professionally manages each Fund's
portfolio.
This Prospectus sets forth concisely information about each Fund
that you should know before investing. It should be read and retained for
future reference.
The Statement of Additional Information, dated May 1, 1997, which
may be revised from time to time, provides a further discussion of certain
areas in this Prospectus and other matters which may be of interest to some
shareholders. It has been filed with the Securities and Exchange Commission
and is incorporated herein by reference. The Securities and Exchange
Commission maintains a Web site (http://www.sec.gov) that contains the
Statement of Additional Information, material incorporated by reference, and
other information regarding each Fund. For a free copy of the Statement of
Additional Information, write to the Fund at 144 Glenn Curtiss Boulevard,
Uniondale, New York 11556-0144, or call 1-800-645-6561. When telephoning, ask
for Operator 144.
Mutual fund shares are not deposits or obligations of, or guaranteed
or endorsed by, any bank, and are not federally insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
agency. The net asset value of the Term Funds will fluctuate from time to
time.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
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(CONTINUED FROM PRIOR PAGE)
You can invest, reinvest or redeem shares at any time without
charge or penalty.
Each Fund provides free redemption checks, which you can use in
amounts of $500 or more for cash or to pay bills. You continue to earn income
on the amount of the check until it clears. You can purchase or redeem shares
by telephone using Dreyfus TELETRANSFER.
TABLE OF CONTENTS
Page
Annual Fund Operating Expenses.................... 3
Condensed Financial Information................... 3
Yield and Performance Information................. 6
Description of the Funds.......................... 7
Management of the Funds........................... 8
How to Buy Shares................................. 9
Shareholder Services.............................. 11
How to Redeem Shares.............................. 15
Shareholder Services Plan......................... 17
Dividends, Distributions and Taxes................ 17
General Information............................... 19
Appendix.......................................... 21
Page 2
<TABLE>
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average daily net assets)
MONEY SHORT INTERM LONG
MARKET TERM TERM TERM
FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
Management Fees ........................................... .50% .33%* .47%* .41%*
Other Expenses............................................. .23% .37% .33% .39%
Total Fund Operating Expenses.............................. .73% .70%* .80%* .80%*
* After fee waiver.
Example:
You would pay the following expenses on a $1,000 investment in each Fund,
assuming (1) 5% annual return and (2) redemption at the end of each
period:
MONEY SHORT INTERM LONG
MARKET TERM TERM TERM
FUND FUND FUND FUND
1 YEAR $ 7 $ 7 $ 8 $ 8
3 YEARS $23 $22 $26 $26
5 YEARS $41 $39 $44 $44
10 YEARS $91 $87 $99 $99
</TABLE>
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THE AMOUNTS LISTED IN THE EXAMPLE SHOULD NOT BE CONSIDERED AS
REPRESENTATIVE OF PAST OR FUTURE EXPENSES AND ACTUAL EXPENSES MAY BE GREATER
OR LESS THAN THOSE INDICATED. MOREOVER, WHILE THE EXAMPLE ASSUMES A 5% ANNUAL
RETURN, EACH FUND'S ACTUAL PERFORMANCE WILL VARY AND MAY RESULT IN AN ACTUAL
RETURN GREATER OR LESS THAN 5%.
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The purpose of the foregoing table is to assist you in
understanding the costs and expenses borne by each Fund, the payment of which
will reduce investors' annual return. The expenses noted above reflect an
undertaking by The Dreyfus Corporation, in effect through the fiscal year
ending December 31, 1997, that if Fund expenses, including the management
fee, exceed .70% for the Short Term Fund, and .80% for the Intermediate Term
Fund and Long Term Fund, of the value of the Fund's average net assets for
the fiscal year, The Dreyfus Corporation may waive its management fee or bear
certain other expenses to the extent of such excess expense. The expenses
noted above, without reimbursement, would have been: Management Fees _ .60%
for all TERM FUNDS and Total Operating Expenses -- .97% for the SHORT TERM
FUND, .93% for the INTERMEDIATE TERM FUND and .99% for the LONG TERM FUND.
You can purchase Fund shares without charge directly from the Funds'
distributor; you may be charged a fee if you effect transactions in Fund
shares through a securities dealer, bank or other financial institution. See
"Management of the Funds," "How to Buy Shares" and "Shareholder Services
Plan."
CONDENSED FINANCIAL INFORMATION
The information in each of the following tables has been audited by
Ernst & Young LLP, each Fund's independent auditors, whose reports thereon
appear in the Statement of Additional Information. Further financial data and
related notes are included in the Statement of Additional Information,
available upon request.
Page 3
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 year indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
MONEY MARKET FUND
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------------------------------
PER SHARE DATA: 1987(1) 1988 1989 1990 1991 1992 1993 1994 1995 1996
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income -- net .047 .066 .079 .077 .060 .036 .025 .033 .051 .046
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment
income _ net....... (.047) (.066) (.079) (.077) (.060) (.036) (.025) (.033) (.051) (.046)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL INVESTMENT
RETURN 6.31%(2) 6.85% 8.19% 7.93% 6.20% 3.64% 2.56% 3.38% 5.19% 4.67%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets .22%(2) .25% .73% .09% .14% .35% .65% .71% .69% .73%
Ratio of net investment
income to average
net assets 6.28%(2) 6.74% 7.94% 7.65% 5.86% 3.62% 2.53% 3.29% 5.09% 4.55%
Decrease reflected in
above expense ratios
due to undertakings
by The Dreyfus
Corporation .88%(2) .57% .16% .60% .50% .27% .02% ._ ._ ._
Net Assets, end of year
(000's omitted) $72,301 $132,263 $123,390 $1,159,309 $3,773,615 $3,025,041 $1,917,929 $1,430,739 $1,310,691 $1,286,854
(1) From March 27, 1987 (commencement of operations) to December 31, 1987.
(2) Annualized.
</TABLE>
<TABLE>
SHORT TERM FUND(1)
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------------------------------
PER SHARE DATA: 1987(2) 1988 1989 1990 1991 1992 1993 1994 1995 1996
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $14.50 $15.03 $14.96 $15.62 $15.40 $16.18 $15.91 $15.75 $14.55 $15.14
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income -- net .38 1.20 1.19 1.14 1.13 1.35 1.25 1.15 1.03 .90
Net realized and
unrealized gain (loss)
on investments .53 (.07) .66 (.22) .78 (.27) (.16) (1.20) .59 (.32)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS .91 1.13 1.85 .92 1.91 1.08 1.09 (.05) 1.62 .58
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment
income _ net....... (.38) (1.20) (1.19) (1.14) (1.13) (1.35) (1.25) (1.15) (1.03) (.90)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of year $15.03 $14.96 $15.62 $15.40 $16.18 $15.91 $15.75 $14.55 $15.14 $14.82
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL INVESTMENT
RETURN 20.12%(3) 7.89% 12.83% 6.24% 12.92% 7.01% 7.03% (.33%) 11.38% 4.07%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets .-- .-- .-- .-- .-- .03% .11% .35% .65% .70%
Ratio of net investment
income to average
net assets 8.15%(3) 7.75% 7.84% 7.50% 8.60% 8.34% 7.82% 7.61% 6.90% 6.04%
Decrease reflected in
above expense ratios
due to undertakings by
The Dreyfus Corporation
(limited to the expense
limitation provision
of the management
agreement) 1.50%(3) 1.50% 1.50% 1.50% 1.50% 1.09% .85% .59% .29% .27%
Portfolio Turnover Rate .-- .-- -- -- 59.59% 137.93% 322.62% 499.11% 480.44% 539.38%
Net Assets, end of year
(000's omitted).. $161 $368 $258 $239 $29,183 $144,058 $188,300 $172,556 $188,726 $187,826
(1) On October 1, 1991, the Fund's investment objective and certain of its fundamental policies and
investment restrictions were changed. See "Information About the Funds" in
the Statement of Additional Information.
(2) From September 10, 1987 (commencement of operations) to December 31, 1987.
(3) Annualized.
</TABLE>
Page 4
<TABLE>
INTERMEDIATE TERM FUND(1)
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------------------------------
PER SHARE DATA: 1987(2) 1988 1989 1990 1991 1992 1993 1994 1995 1996
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $13.50 $12.66 $12.22 $12.59 $12.48 $13.22 $13.12 $13.60 $12.16 $13.13
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment
income -- net .99 1.16 1.14 1.13 1.06 1.00 .95 .91 .89 .82
Net realized and
unrealized gain(loss)
on investments.. (.84) (.44) .37 (.11) .74 (.10) .48 (1.44) .97 (.44)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS....... .15 .72 1.51 1.02 1.80 .90 1.43 (.53) 1.86 .38
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from
investment
income _ net (.99) (1.16) (1.14) (1.13) (1.06) (1.00) (.95) (.91) (.89) (.82)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of year $12.66 $12.22 $12.59 $12.48 $13.22 $13.12 $13.60 $12.16 $13.13 $12.69
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL INVESTMENT
RETURN.... 1.62%(3) 5.80% 12.87% 8.60% 15.23% 7.17% 11.05% (3.97%) 15.77% 3.08%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses
to average net assets ._ .47% .80% .80% .62% .52% .73% .89% .84% .80%
Ratio of net investment
income to average
net assets.. 9.93%(3) 9.18% 9.16% 9.15% 8.44% 7.68% 6.92% 7.15% 7.02% 6.41%
Decrease reflected in
above expense ratios
due to undertakings
by The Dreyfus
Corporation (limited
to the expense
limitation provision
of the management
agreement).. 1.36%(3) .74% .34% .20% .33% .38% .13% ._ .02% .13%
Portfolio Turnover
Rate.. 4.82%(4) 20.54% 5.59% 4.43% 21.78% 115.78% 333.76% 696.65% 492.76% 728.01%
Net Assets, end of year
(000's omitted) $40,725 $62,025 $60,960 $71,232 $183,288 $231,094 $254,278 $185,261 $196,970 $192,296
(1) On October 24, 1991, the Fund's investment objective and certain of
its fundamental policies and investment restrictions were changed. See
"Information About the Funds" in the Statement of Additional Information.
(2) From March 27, 1987 (commencement of operations) to December 31, 1987.
(3) Annualized.
(4) Not annualized.
</TABLE>
<TABLE>
LONG TERM FUND(1)
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------------------------------
PER SHARE DATA: 1987(2) 1988 1989 1990 1991 1992 1993 1994 1995 1996
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $14.50 $12.89 $12.74 $13.56 $13.26 $14.42 $14.37 $15.68 $13.26 $15.51
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment
income -- net. .95 1.17 1.17 1.17 1.14 1.08 1.03 1.01 .96 .98
Net realized and
unrealized gain (loss)
on investments.. (1.61) (.15) .82 (.30) 1.16 (.05) 1.31 (2.42) 2.25 (.89)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS (.66) 1.02 1.99 .87 2.30 1.03 2.34 (1.41) 3.21 .09
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from
investment
income _ net (.95) (1.17) (1.17) (1.17) (1.14) (1.08) (1.03) (1.01) (.96) (.99)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of year $12.89 $12.74 $13.56 $13.26 $14.42 $14.37 $15.68 $13.26 $15.51 $14.61
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL INVESTMENT
RETURN. (5.81)%(3) 8.18% 16.22% 7.02% 18.28% 7.55% 16.59% (9.18%) 24.91% .87%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses
to average net assets ._ ._ ._ ._ .25% .56% .78% .98% .87% .80%
Ratio of net investment
income to average
net assets.. 9.49%(3) 9.04% 8.79% 9.05% 8.34% 7.63% 6.65% 7.08% 6.69% 6.74%
Decrease reflected
in above expense ratios
due to undertakings by
The Dreyfus
Corporation 1.50%(3) 1.50% 1.50% 1.28% .72% .39% .09% ._ .05% .19%
Portfolio Turnover
Rate.. 1.58%(4) 19.21% 40.08% 30.68% 21.01% 97.46% 420.68% 1,213.04% 634.38% 765.13%
Net Assets, end of year
(000's omitted) $6,334 $9,760 $24,242 $42,525 $217,422 $238,839 $215,157 $123,403. $146,445 $135,368
(1) On October 24, 1991, the Fund's investment objective and certain of
its fundamental policies and investment restrictions were changed. See
"Information About the Funds" in the Statement of Additional Information.
(2) From March 27, 1987 (commencement of operations) to December 31, 1987.
(3) Annualized.
(4) Not annualized.
</TABLE>
Page 5
Further information about each Fund's performance is contained in
such Fund's annual report, which may be obtained without charge by writing to
the address or calling the number set forth on the cover page of this
Prospectus.
YIELD AND PERFORMANCE INFORMATION
MONEY MARKET FUND -- From time to time, the MONEY MARKET FUND advertises its
yield and effective yield. Both yield figures are based on historical
earnings and are not intended to indicate future performance. It can be
expected that these yields will fluctuate substantially. The yield of the
MONEY MARKET FUND refers to the income generated by an investment in the Fund
over a seven-day period (which period will be stated in the advertisement).
This income is then annualized. That is, the amount of income generated by
the investment during that week is assumed to be generated each week over a
52-week period and is shown as a percentage of the investment. The effective
yield is calculated similarly but, when annualized, the income earned by an
investment in the Fund is assumed to be reinvested. The effective yield will
be slightly higher than the yield because of the compounding effect of this
assumed reinvestment. The Fund's yield and effective yield may reflect
absorbed expenses pursuant to any undertakings that may be in effect. See
"Management of the Funds."
Tax equivalent yield is calculated by determining the pre-tax yield
which, after being taxed at a stated rate, would be equivalent to a stated
current yield as described above.
Yield information is useful in reviewing the MONEY MARKET FUND'S
performance, but because yields will fluctuate, under certain conditions such
information may not provide a basis for comparison with domestic bank
deposits, other investments which pay a fixed yield for a stated period of
time, or other investment companies which may use a different method of
computing yield.
SHORT TERM, INTERMEDIATE TERM AND LONG TERM FUNDS -- For purposes of
advertising, performance of the SHORT TERM FUND, INTERMEDIATE TERM FUND and
LONG TERM FUND (collectively, the "TERM FUNDS") may be calculated on several
bases, including current yield, tax equivalent yield, average annual total
return and/or total return.
Current yield of a TERM FUND refers to that Fund's annualized net
investment income per share over a 30-day period, expressed as a percentage
of the net asset value per share at the end of the period. For purposes of
calculating current yield, the amount of net investment income per share
during that 30-day period, computed in accordance with regulatory
requirements, is compounded by assuming it is reinvested at a constant rate
over a six-month period. An identical result is then assumed to have occurred
during a second six-month period which, when added to the result for the
first six months, provides an "annualized" yield for an entire one-year
period. Calculations of each TERM FUND'S current yield may reflect absorbed
expenses pursuant to any undertakings that may be in effect. See "Management
of the Funds."
Tax equivalent yield is calculated by determining the pre-tax yield
which, after being taxed at a stated rate, would be equivalent to a stated
current yield calculated as described above.
Average annual total return for each TERM FUND is calculated
pursuant to a standardized formula which assumes that an investment in a TERM
FUND was purchased with an initial payment of $1,000 and that the investment
was redeemed at the end of a stated period of time, after giving effect to
the reinvestment of dividends and distributions during the period. The return
is expressed as a percentage rate which, if applied on a compounded annual
basis, would result in the redeemable value of the investment at the end of
the period. Advertisements of each TERM FUND'S performance will include such
TERM FUND'S average annual total return for one, five and ten year periods, or
for shorter time periods depending upon the length of time such TERM FUND has
operated.
Page 6
Total return is computed on a per share basis and assumes the
reinvestment of dividends and distributions. Total return generally is
expressed as a percentage rate which is calculated by combining the income
and principal changes for a specified period and dividing by the net asset
value per share at the beginning of the period. Advertisements may include
the percentage rate of total return or may include the value of a
hypothetical investment at the end of the period which assumes the
application of the percentage rate of total return.
ALL FUNDS -- Performance will vary from time to time and past results are not
necessarily representative of future results. You should remember that
performance is a function of portfolio management in selecting the type and
quality of portfolio securities and is affected by operating expenses.
Performance information, such as that described above, may not provide a
basis for comparison with other investments or other investment companies
using a different method of calculating performance.
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 Monitortrademark, N. Palm Beach, Fla.
33408, IBC's Money Fund Reporttrade mark, CDA Investment Technologies, Inc.,
Wiesenberger Investment Companies Services, Moody's Bond Survey Bond Index,
Morningstar, Inc. and other industry publications.
DESCRIPTION OF THE FUNDS
INVESTMENT OBJECTIVE
Each Fund's investment objective is to provide you with as high a
level of current income as is consistent with the preservation of capital
and, for the MONEY MARKET FUND only, with the maintenance of liquidity. It
cannot be changed, as to a Fund, without approval by the holders of a
majority (as defined in the Investment Company Act of 1940, as amended (the
"1940 Act")) of such Fund's outstanding voting shares. There can be no
assurance that a Fund's investment objective will be achieved.
MANAGEMENT POLICIES
Each Fund invests only in U.S. Treasury securities the interest
from which would not subject shareholders to state or local income tax. Each
Fund passes through to you state and local income tax exemptions afforded to
owners of such U.S. Treasury securities in each state. Such interest income,
however, will not be exempt from Federal tax. Furthermore, capital gains
realized by a Fund will not be exempt from Federal taxes or, generally, from
state and local taxes. U.S. Treasury securities 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 greater
than ten years. Under normal market conditions, the dollar-weighted average
maturity of the SHORT TERM FUND'S portfolio is expected to range between two
and three years; the dollar-weighted average maturity of the INTERMEDIATE
TERM FUND'S portfolio is expected to range between three and seven years; and
the dollar-weighted average maturity of the LONG TERM FUND'S portfolio is
expected to be greater than ten years. For defensive purposes in an effort to
preserve capital during periods of rapidly changing interest rates, each TERM
FUND'S assets may be invested temporarily so that its dollar-weighted average
portfolio maturity may be less than that stated above. See "Appendix --
Investment Techniques."
The MONEY MARKET FUND seeks to maintain a net asset value of $1.00
per share for purchases and redemptions. To do so, the MONEY MARKET FUND uses
the amortized cost method of valuing its securities pursuant to Rule 2a-7
under the 1940 Act, which Rule includes various maturity, quality and
diversification requirements, certain of which are summarized as follows. In
accordance with Rule 2a-7, the MONEY MARKET FUND will maintain a
dollar-weighted average portfolio maturity of 90 days or less, purchase only
Page 7
instruments having remaining maturities of 13 months or less and invest only
in U.S. dollar denominated securities. For further information regarding the
amortized cost method of valuing securities, see "Determination of Net Asset
Value" in the Statement of Additional Information. There can be no assurance
that the MONEY MARKET FUND will be able to maintain a stable net asset value
of $1.00 per share.
INVESTMENT CONSIDERATIONS AND RISKS
The value of the portfolio securities held by a Fund will vary
inversely to changes in prevailing interest rates. Thus, if interest rates
have increased from the time a security was purchased, such security, if
sold, might be sold at a price less than its cost. Similarly, if interest
rates have declined from the time a security was purchased, such security, if
sold, might be sold at a price greater than its cost. In either instance, if
the security was purchased at face value and held to maturity, no gain or
loss would be realized.
Each TERM FUND may attempt to increase yield by trading to take
advantage of short-term market variations. This policy is expected to result
in high portfolio turnover but should not adversely affect the Fund since the
TERM FUNDS usually pay no brokerage commissions when they purchase portfolio
securities.
The MONEY MARKET FUND seeks to maintain a stable net asset value of
$1.00 per share, while the net asset value per share of each TERM FUND
generally will not be stable and should fluctuate based on changes in the
value of its portfolio securities. The SHORT TERM FUND'S price per share
should fluctuate less than that of the INTERMEDIATE TERM FUND which should
fluctuate less than that of the LONG TERM FUND.
MANAGEMENT OF THE FUNDS
INVESTMENT ADVISER -- The Dreyfus Corporation, located at 200 Park Avenue,
New York, New York 10166, was formed in 1947 and serves as each Fund's
investment adviser. The Dreyfus Corporation is a wholly-owned subsidiary of
Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon Bank
Corporation ("Mellon"). As of March 31, 1997, The Dreyfus Corporation managed
or administered approximately $82 billion in assets for approximately 1.7
million shareholder accounts nationwide.
The Dreyfus Corporation supervises and assists in the overall
management of each Fund's affairs under a separate Management Agreement with
each Fund, subject to the authority of the Fund's Board in accordance with
Massachusetts law. The primary portfolio manager of each TERM FUND is Gerald
Thunelius. He has held that position since 1991, and has been employed by The
Dreyfus Corporation since 1989. The Funds' other portfolio managers are
identified in the Statement of Additional Information. The Dreyfus
Corporation also provides research services for the Funds and for other funds
advised by The Dreyfus Corporation through a professional staff of portfolio
managers and securities analysts.
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. Mellon's principal wholly-owned
subsidiaries are Mellon Bank, N.A., Mellon Bank (DE) National Association,
Mellon Bank (MD), The Boston Company, Inc., AFCO Credit Corporation and a
number of companies known as Mellon Financial Services Corporations. Through
its subsidiaries, including The Dreyfus Corporation, Mellon managed more than
$233 billion in assets as of December 31, 1996, including approximately $86
billion in proprietary mutual fund assets. As of December 31, 1996, Mellon,
through various subsidiaries, provided non-investment services, such as
custodial or administration services, for more than $1.046 trillion in assets
including approximately $57 billion in mutual fund assets.
For the fiscal year ended December 31, 1996, the MONEY MARKET FUND
paid The Dreyfus Corporation a monthly management fee at the annual rate of
.50% of the value of its average daily net
Page 8
assets. For the fiscal year ended December 31, 1996, the Short Term Fund,
INTERMEDIATE TERM FUND and LONG TERM FUND, which have each agreed to pay The
Dreyfus Corporation a monthly management fee at the annual rate of .60% of
the value of its average daily net assets, paid The Dreyfus Corporation a
monthly management fee at the effective annual rate of .33%, .47% and .41%,
respectively, of the value of its average daily net assets, pursuant to
undertakings by The Dreyfus Corporation.
From time to time, The Dreyfus Corporation may waive receipt of its
fee and/or voluntarily assume certain expenses of a Fund, which would have
the effect of lowering that Fund's expense ratio and increasing yield to
investors. A Fund will not pay The Dreyfus Corporation at a later time for
any amounts it may waive, nor will a Fund reimburse The Dreyfus Corporation
for any amounts it may assume.
In allocating brokerage transactions, The Dreyfus Corporation seeks
to obtain the best execution of orders at the most favorable net price.
Subject to this determination, The Dreyfus Corporation may consider, among
other things, the receipt of research services and/or the sale of shares of
the Fund or other funds managed, advised or administered by The Dreyfus
Corporation as factors in the selection of broker-dealers to execute
portfolio transactions for the Fund. See "Portfolio Transactions" in the State
ment of Additional Information.
The Dreyfus Corporation may pay the Funds' distributor for
shareholder services from The Dreyfus Corporation's own assets, including
past profits but not including the management fee paid by the Funds. The
Funds' distributor may use part or all of such payments to pay securities
dealers, banks or other financial institutions in respect of these services.
DISTRIBUTOR -- Each Fund's distributor is Premier Mutual Fund Services, Inc.
(the "Distributor"), located at 60 State Street, Boston, Massachusetts 02109.
The Distributor's ultimate parent is Boston Institutional Group, Inc.
TRANSFER AND DIVIDEND DISBURSING AGENT AND CUSTODIAN -- Dreyfus Transfer,
Inc., a wholly-owned subsidiary of The Dreyfus Corporation, P.O. Box 9671,
Providence, Rhode Island 02940-9671, is the Transfer and Dividend Disbursing
Agent (the "Transfer Agent") for each Fund. The Bank of New York, 90
Washington Street, New York, New York 10286, is the Custodian for the MONEY
MARKET FUND. Mellon Bank, N.A., One Mellon Bank Center, Pittsburgh,
Pennsylvania 15258, is the Custodian for each TERM FUND.
HOW TO BUY SHARES
Fund shares are sold without a sales charge. You may be charged a
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 maintains an omnibus account in the Fund and 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
Dreyfus Corporation or any of its affiliates or subsidiaries, directors of
The Dreyfus Corporation, Board members of a fund advised by The Dreyfus
Corporation, 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 Dreyfus Corporation or any of its
affiliates or subsidiaries who elect to have a portion of their pay directly
deposited into their Fund accounts, the minimum initial investment is $50.
Each Fund reserves the right to offer Fund shares
Page 9
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 BuilderRegistration Mark, 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.
You may purchase Fund shares by check or wire, or through the
Dreyfus TELETRANSFER Privilege described below. Checks should be made payable
to "The Dreyfus Family of Funds." Payments to open new accounts which are
mailed should be sent to The Dreyfus Family of Funds, P.O. Box 9387,
Providence, Rhode Island 02940-9387, together with your Account Application.
For subsequent investments, your Fund account number should appear on the
check and an investment slip should be enclosed and sent to The Dreyfus
Family of Funds, P.O. Box 105, Newark, New Jersey 07101-0105. Neither initial
nor subsequent investments should be made by third party check. Purchase
orders may be delivered in person only to a Dreyfus Financial Center. THESE
ORDERS WILL BE FORWARDED TO THE RELEVANT FUND AND WILL BE PROCESSED ONLY UPON
RECEIPT THEREBY. For the location of the nearest Dreyfus Financial Center,
please call one of the telephone numbers listed under "General Information."
Wire payments may be made if your bank account is in a commercial
bank that is a member of the Federal Reserve System or any other bank having
a correspondent bank in New York City. Immediately available funds may be
transmitted by wire to The Bank of New York (DDA #8900119497/Dreyfus 100%
U.S. Treasury Money Market Fund; or DDA #8900119543/Dreyfus 100% U.S. Treasury
Short Term Fund; or DDA #8900119500/Dreyfus 100% U.S. Treasury Intermediate
Term Fund; or DDA #8900119519/Dreyfus 100% U.S. Treasury Long Term Fund)
for purchase of Fund shares in your name. The wire must include your
Fund account number (for new accounts, your Taxpayer Identification Number
("TIN") should be included instead), account registration and dealer number,
if applicable. If your initial purchase of Fund shares is by wire, please
call 1-800-645-6561 after completing your wire payment to obtain your Fund
account number. Please include your Fund account number on the Account
Application and promptly mail the Account Application to the Fund, as no
redemptions will be permitted until the Account Application is received. You
may obtain further information about remitting funds in this manner from your
bank. All payments should be made in U.S. dollars and, to avoid fees and
delays, should be drawn only on U.S. banks. A charge will be imposed if any
check used for investment in your account does not clear. Each Fund makes
available to certain large institutions the ability to issue purchase
instructions through compatible computer facilities.
Subsequent investments also may be made by electronic transfer of
funds from an account maintained in a bank or other domestic financial
institution that is an Automated Clearing House member. You must direct the
institution to transmit immediately available funds through the Automated
Clearing House to The Bank of New York with instructions to credit your Fund
account. The instructions must specify your Fund account registration and
your Fund account number PRECEDED BY THE DIGITS "1111."
Fund 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 agent. Net asset value per share is deter-
Page 10
mined 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 its 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.
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 of up to .5% 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 of Funds or certain other products made available by the
Distributor to such plans 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.
Federal regulations require that you provide a certified TIN upon
opening or reopening an account. See "Dividends, Distributions and Taxes" and
the Account Application for further information concerning this requirement.
Failure to furnish a certified TIN to the Fund could subject you to a $50
penalty imposed by the Internal Revenue Service (the "IRS").
DREYFUS TELETRANSFER PRIVILEGE -- You may purchase shares (minimum $500,
maximum $150,000 per day) 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 member may be so
designated. Each Fund may modify or terminate this Privilege at any time or
charge a service fee upon notice to shareholders. No such fee currently is
contemplated.
If you have selected the Dreyfus TELETRANSFER Privilege, you may
request a Dreyfus TELETRANSFER purchase of shares by calling 1-800-645-6561
or, if you are calling from overseas, call 516-794-5452.
SHAREHOLDER SERVICES
FUND EXCHANGES -- You may purchase, in exchange for shares of a Fund, shares
of certain other funds managed or administered by The Dreyfus Corporation, to
the extent such shares are offered for sale in your state of residence. These
funds have different investment objectives that may be of interest to you.
Exchanges may be made among the Funds offered by this Prospectus as well. If
you desire to use this service, please call 1-800-645-6561 to determine if it
is available and whether any conditions are imposed on its use.
Page 11
To request an exchange, you must give exchange instructions to the
Transfer Agent in writing or by telephone. Before any exchange, you must
obtain and should review a copy of the current prospectus of the fund into
which the exchange is being made. Prospectuses may be obtained by calling
1-800-645-6561. Except in the case of personal retirement plans, the shares
being exchanged must have a current value of at least $500; furthermore, when
establishing a new account by exchange, the shares being exchanged must have
a value of at least the minimum initial investment required for the fund into
which the exchange is being made. 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. The Telephone Exchange Privilege may be
established for an existing account by written request signed by all
shareholders on the account, by a separate signed Shareholder Services Form,
available by calling 1-800-645-6561, or by oral request from any of the
authorized signatories on the account by calling 1-800-645-6561. If you have
established the Telephone Exchange Privilege, you may telephone exchange
instructions (including over The Dreyfus TouchRegistration Mark automated
telephone system) by calling 1-800-645-6561. If you are calling from
overseas, call 516-794-5452. See "How to Redeem Shares -- Procedures." Upon
an exchange into a new account, the following shareholder services and
privileges, as applicable and where available, will be automatically carried
over to the fund into which the exchange is made: Telephone Exchange
Privilege, Check Redemption Privilege, Wire Redemption Privilege, Telephone
Redemption Privilege, Dreyfus TELETRANSFER Privilege and the dividend/capital
gain distribution option (except for Dreyfus Dividend Sweep) selected by the
investor.
Shares will be exchanged at the next determined net asset value;
however, a sales load may be charged with respect to exchanges into funds
sold with a sales load. If you are exchanging into a fund that charges a
sales load, you may qualify for share prices which do not include a sales
load or which reflect a reduced sales load, if the shares you are exchanging
were: (a) purchased with a sales load, (b) acquired by a previous exchange
from shares purchased with a sales load, or (c) acquired through reinvestment
of dividends or distributions paid with respect to the foregoing categories
of shares. To qualify, at the time of the exchange you must notify the
Transfer Agent. Any such qualification is subject to confirmation of the
holdings through a check of appropriate records. See "Shareholder Services"
in the Statement of Additional Information. No fees currently are charged
shareholders directly in connection with exchanges, although each Fund
reserves the right, upon not less than 60 days' written notice, to charge
shareholders a nominal administrative fee in accordance with rules
promulgated by the Securities and Exchange Commission. Each Fund reserves the
right to reject any exchange request in whole or in part. The availability of
Fund Exchanges may be modified or terminated at any time upon notice to
shareholders. See "Dividends, Distributions and Taxes."
DREYFUS AUTO-EXCHANGE PRIVILEGE -- Dreyfus Auto-Exchange Privilege enables
you to invest regularly (on a semi-monthly, monthly, quarterly or annual
basis), in exchange for shares of a Fund, in shares of certain other funds in
the Dreyfus Family of Funds of which you are a shareholder. The amount you
designate, which can be expressed either in terms of a specific dollar or
share amount ($100 minimum), will be exchanged automatically on the first
and/or fifteenth of the month according to the schedule you have selected.
Shares will be exchanged at the then-current net asset value; however, a
sales load may be charged with respect to exchanges into funds sold with a
sales load. See "Shareholder Services" in the Statement of Additional
Information. The right to exercise this Privilege may be modified or
cancelled by your Fund or the Transfer Agent. You may modify or cancel your
exercise of this Privilege at any
Page 12
time by mailing written notification to The Dreyfus Family of Funds, P.O.
Box 9671, Providence, Rhode Island 02940-9671. Each Fund may charge a service
fee for the use of this Privilege. No such fee currently is contemplated. For
more information concerning this Privilege and the funds in the Dreyfus Family
of Funds eligible to participate in this Privilege, or to obtain a Dreyfus
Auto-Exchange Authorization Form, please call toll free 1-800-645-6561. See
"Dividends, Distributions and Taxes."
DREYFUS-AUTOMATIC ASSET BUILDERRegistration Mark -- 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.
At your option, the bank account designated by you will be debited in the
specified amount, and Fund shares will be purchased, once a month, on either
the first or fifteenth day, or twice a month, on both days. Only an account
maintained at a domestic financial institution which is an Automated Clearing
House member may be so designated. To establish a Dreyfus-Automatic Asset
Builder account, you must file an authorization form with the Transfer Agent.
You may obtain the necessary authorization form by calling 1-800-645-6561.
You may cancel your participation in this Privilege or change the amount of
purchase at any time by mailing written notification to The Dreyfus Family of
Funds, P.O. Box 9671, Providence, Rhode Island 02940-9671, and the
notification will be effective three business days following receipt. Each
Fund may modify or terminate this Privilege at any time or charge a service
fee. No such fee currently is contemplated.
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 Federal
government automatically deposited into your Fund account. You may deposit as
much of such payments as you elect. To enroll in Dreyfus Government Direct
Deposit, you must file with the Transfer Agent a completed Direct Deposit
Sign-Up Form for each type of payment that you desire to include in this
Privilege. The appropriate form may be obtained by calling 1-800-645-6561.
Death or legal incapacity will terminate your participation in this
Privilege. You may elect at any time to terminate your participation by
notifying in writing the appropriate Federal agency. Further, your Fund may
terminate your participation upon 30 days' notice to you.
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 Automated Clearing House 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. Your
employer must complete the reverse side of the form and return it to The
Dreyfus Family of Funds, P.O. Box 9671, Providence, Rhode Island 02940-9671.
You may obtain the necessary authorization form by calling 1-800-645-6561.
You may change the amount of purchase or cancel the authorization only by
written notification to your employer. It is the sole responsibility of your
employer, not the Distributor, The Dreyfus Corporation, the Fund, the
Transfer Agent or any other person, to arrange for transactions under the
Dreyfus Payroll Savings Plan. Each Fund may modify or terminate this
Privilege at any time or charge a service fee. No such fee currently is
contemplated.
DREYFUS STEP PROGRAM _ Dreyfus Step Program enables you to purchase Fund
shares without regard to the Fund's minimum initial investment requirements
through Dreyfus-AUTOMATIC Asset Builder, Dreyfus Government Direct Deposit
Privilege or Dreyfus Payroll Savings Plan. To establish a Dreyfus
Page 13
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 BuilderRegistration Mark,
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, SEP-IRAs and IRA
"Rollover Accounts."
DREYFUS DIVIDEND OPTIONS -- Dreyfus Dividend Sweep enables you to invest
automatically 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 the other fund will be purchased at
the then-current net asset value; however, a sales load may be charged with
respect to investments in shares of a fund sold with a sales load. If you are
investing in a fund that charges a sales load, you may qualify for share
prices which do not include the sales load or which reflect a reduced sales
load. If you are investing in a fund that charges a contingent deferred sales
charge, the shares purchased will be subject on redemption to the contingent
deferred sales charge, if any, applicable to the purchased shares. See
"Shareholder Services" in the Statement of Additional Information. 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 Automated Clearing House member may be so designated. Banks may charge
a fee for this service.
For more information concerning these privileges or to request a
Dividend Options Form, please call toll free 1-800-645-6561. You may cancel
these privileges by mailing written notification to The Dreyfus Family of
Funds, P.O. Box 9671, Providence, Rhode Island 02940-9671. Enrollment in or
cancellation of these privileges is effective three business days following
receipt. These privileges are available only for existing accounts and may
not be used to open new accounts. Minimum subsequent investments do not apply
for Dreyfus Dividend Sweep. The Funds may modify or terminate these
privileges at any time or charge a service fee. No such fee currently is
contemplated. Shares held under Keogh Plans, IRAs or other retirement plans
are not eligible for Dreyfus Dividend Sweep.
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. An
application for the Automatic Withdrawal Plan can be obtained by calling
1-800-645-6561. The Automatic Withdrawal Plan may be ended at any time by
you, your Fund or the Transfer Agent. Shares for which certificates have been
issued may not be redeemed through the Automatic Withdrawal Plan.
RETIREMENT PLANS -- Each Fund offers a variety of pension and profit-sharing
plans, including Keogh Plans, IRAs, SEP-IRAs, IRA "Rollover Accounts," 401(k)
Salary Reduction Plans and 403(b)(7) Plans. Plan support services also are
available. You can obtain details on the various plans by calling the
following numbers toll free: for Keogh Plans, please call 1-800-358-5566; for
IRAs and IRA "Rollover Accounts," please call 1-800-645-6561; or for SEP-IRAs,
401(k) Salary Reduction Plans and 403(b)(7) Plans, please call 1-800-322-7880.
Page 14
HOW TO REDEEM SHARES
GENERAL
You may request redemption of your shares at any time. Redemption
requests should be transmitted to the Transfer Agent as described below. When
a request is received in proper form, your Fund will redeem the shares at the
next determined net asset value.
No Fund imposes a charge when shares are redeemed. Securities
dealers, banks or other financial institutions may charge their clients a fee
for effecting redemptions of Fund shares. Any certificates representing Fund
shares being redeemed must be submitted with the redemption request. The
value of the shares redeemed may be more or less than their original cost,
depending upon the respective Fund's then-current net asset value.
Each Fund ordinarily will make payment for all shares redeemed
within seven days after receipt by the Transfer Agent of a redemption request
in proper form, except as provided by the rules of the Securities and Exchange
Commission. HOWEVER, IF YOU HAVE PURCHASED FUND SHARES BY CHECK, BY DREYFUS
TELETRANSFER PRIVILEGE OR THROUGH DREYFUS-AUTOMATIC ASSET BUILDERRegistration
Mark AND SUBSEQUENTLY SUBMIT A WRITTEN REDEMPTION REQUEST TO THE TRANSFER
AGENT, THE REDEMPTION PROCEEDS WILL BE TRANSMITTED TO YOU PROMPTLY UPON BANK
CLEARANCE OF YOUR PURCHASE CHECK, DREYFUS TELETRANSFER PURCHASE OR
DREYFUS-AUTOMATIC ASSET BUILDER ORDER, WHICH MAY TAKE UP TO EIGHT BUSINESS
DAYS OR MORE. IN ADDITION, NO FUND WILL HONOR REDEMPTION CHECKS UNDER THE
CHECK REDEMPTION PRIVILEGE, AND THE FUNDS WILL REJECT REQUESTS TO REDEEM
SHARES BY WIRE OR TELEPHONE OR PURSUANT TO THE DREYFUS TELETRANSFER PRIVILEGE,
FOR A PERIOD OF EIGHT BUSINESS DAYS AFTER RECEIPT BY THE TRANSFER AGENT OF THE
PURCHASE CHECK, THE DREYFUS TELETRANSFER PURCHASE OR THE DREYFUS-AUTOMATIC
ASSET BUILDER ORDER AGAINST WHICH SUCH REDEMPTION IS REQUESTED. THESE
PROCEDURES WILL NOT APPLY IF YOUR SHARES WERE PURCHASED BY WIRE PAYMENT, OR IF
YOU OTHERWISE HAVE A SUFFICIENT COLLECTED BALANCE IN YOUR ACCOUNT TO COVER THE
REDEMPTION REQUEST. PRIOR TO THE TIME ANY REDEMPTION IS EFFECTIVE, DIVIDENDS
ON SUCH SHARES WILL ACCRUE AND BE PAYABLE, AND YOU WILL BE ENTITLED TO
EXERCISE ALL OTHER RIGHTS OF BENEFICIAL OWNERSHIP. Fund shares will not be
redeemed until the Transfer Agent has received your Account Application.
Each Fund reserves the right to redeem your account at its option
upon not less than 30 days' written notice if your account's net asset value
is $500 or less and remains so during the notice period.
PROCEDURES
You may redeem Fund shares by using the regular redemption procedure
through the Transfer Agent, or, 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, through the Check
Redemption Privilege, the Wire Redemption Privilege, the Telephone Redemption
Privilege, or the Dreyfus TELETRANSFER Privilege. Each Fund makes available
to certain large institutions the ability to issue redemption instructions
through compatible computer facilities. The Fund reserves the right to refuse
any request made by wire or telephone, including requests made shortly after
a change of address, and may limit the amount involved or the number of such
requests. The Fund may modify or terminate any redemption Privilege at any
time or charge a service fee upon notice to shareholders. No such fee
currently is contemplated. Shares held under Keogh Plans, IRAs or other
retirement plans, and shares for which certificates have been issued, are not
eligible for the Check Redemption, Wire Redemption, Telephone Redemption or
Dreyfus TELETRANSFER Privilege.
Page 15
You may redeem shares by telephone if you have checked the
appropriate box on the Account Application or have filed a Shareholder
Services Form with the Transfer Agent. If you select a telephone redemption
privilege or telephone exchange privilege (which is granted automatically
unless you refuse it), you authorize the Transfer Agent to act on telephone
instructions (including over The Dreyfus TouchRegistration Mark automated
telephone system) from any person representing himself or herself to be you
and reasonably believed by the Transfer Agent to be genuine. Each Fund will
require the Transfer Agent to employ reasonable procedures, such as requiring
a form of personal identification, to confirm that instructions are genuine
and, if the Transfer Agent does not follow such procedures, such Fund or the
Transfer Agent may be liable for any losses due to unauthorized or fraudulent
instructions. Neither the Fund nor the Transfer Agent will be liable for
following telephone instructions reasonably believed to be genuine.
During times of drastic economic or market conditions, you may
experience difficulty in contacting the Transfer Agent by telephone to
request a redemption or exchange of Fund shares. In such cases, you should
consider using the other redemption procedures described herein. Use of these
other redemption procedures may result in your redemption request being
processed at a later time than it would have been if telephone redemption had
been used. During the delay, each TERM FUND'S net asset value may fluctuate.
REGULAR REDEMPTION -- Under the regular redemption procedure, you may redeem
shares by written request mailed to The Dreyfus Family of Funds, P.O. Box
9671, Providence, Rhode Island 02940-9671. Redemption requests may be
delivered in person only to a Dreyfus Financial Center. THESE REQUESTS WILL
BE FORWARDED TO THE RELEVANT FUND AND WILL BE PROCESSED ONLY UPON RECEIPT
THEREBY. For the location of the nearest Dreyfus Financial Center, please
call one of the telephone numbers listed under "General Information."
Redemption requests must be signed by each shareholder, including each holder
of a joint account, and each signature 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 Agent Medallion Program ("STAMP"), and the Stock
Exchanges Medallion Program. If you have any questions with respect to
signature-guarantees, please call one of the telephone numbers listed under
"General Information."
Redemption proceeds of at least $1,000 will be wired to any member
bank of the Federal Reserve System in accordance with a written
signature-guaranteed request.
CHECK REDEMPTION PRIVILEGE -- You may write Redemption Checks drawn on your
Fund account. Redemption Checks may be made payable to the order of any
person in the amount of $500 or more. Potential fluctuations in the net asset
value of the shares of the TERM FUNDS should be considered in determining the
amount of the check. Redemption Checks should not be used to close an
account. Redemption Checks are free, but the Transfer Agent will impose a fee
for stopping payment of a Redemption Check upon your request or if the
Transfer Agent cannot honor the Redemption Check due to insufficient funds or
other valid reason. 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 for 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 redemp-
Page 16
tions (see "Dividends, Distributions and Taxes"). Any Redemption Check written
on an account which has become subject to backup withholding on redemptions
will not be honored by the Transfer Agent. If you hold shares in a
Dreyfus-sponsored IRA account, you may be permitted to make withdrawals from
your IRA account using checks furnished to you by The Dreyfus Trust Company.
WIRE REDEMPTION PRIVILEGE -- You may request by wire or telephone that
redemption proceeds (minimum $1,000) be wired to your account at a bank which
is a member of the Federal Reserve System, or a correspondent bank if your
bank is not a member. You also may direct that redemption proceeds be paid by
check (maximum $150,000 per day) made out to the owners of record and mailed
to your address. Redemption proceeds of less than $1,000 will be paid
automatically by check. Holders of jointly registered Fund or bank accounts
may have redemption proceeds of not more than $250,000 wired within any
30-day period. You may telephone redemption requests by calling
1-800-645-6561 or, if you are calling from overseas, call 516-794-5452. The
Statement of Additional Information sets forth instructions for transmitting
redemption requests by wire.
TELEPHONE REDEMPTION PRIVILEGE -- You may request by telephone that
redemption proceeds (maximum $150,000 per day) be paid by check and mailed to
your address. You may telephone redemption instructions by calling
1-800-645-6561 or, if you are calling from overseas, call 516-794-5452.
DREYFUS TELETRANSFER PRIVILEGE -- You may request by telephone that
redemption proceeds (minimum $500 per day) be transferred between your Fund
account and your bank account. Only a bank account maintained in a domestic
financial institution which is an Automated Clearing House member may be
designated. Redemption proceeds will be on deposit in your account at an
Automated Clearing House member bank ordinarily two days after receipt of the
redemption request or, at your request, paid by check (maximum $150,000 per
day) and mailed to your address. 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.
If you have selected the Dreyfus TELETRANSFER Privilege, you may
request a Dreyfus TELETRANSFER redemption of shares by calling 1-800-645-6561
or, if you are calling from overseas, call 516-794-5452.
SHAREHOLDER SERVICES PLAN
Each Fund has adopted a Shareholder Services Plan pursuant to which
the Fund reimburses Dreyfus Service Corporation, a wholly-owned subsidiary of
The Dreyfus Corporation, an amount not to exceed an annual rate of .25 of 1%
of the value of its 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.
DIVIDENDS, DISTRIBUTIONS AND TAXES
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 are automatically 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
Page 17
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. Distributions from
net realized securities gains, if any, generally are declared and paid once a
year, but a 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"), in all events in a manner consistent with the provisions
of the 1940 Act. No Fund will make distributions from net realized
securities gains unless capital loss carryovers, if any, have been utilized
or have expired. You may choose whether to receive distributions in cash or
to reinvest in additional shares at net asset value. All expenses are accrued
daily and deducted before declaration of dividends to investors.
Each Fund intends to invest only in U.S. Treasury securities that
provide interest income exempt from state and local income taxes. Dividends
derived from net investment income attributable to interest from direct
obligations of the United States and paid by each Fund to an individual
shareholder currently are not subject to state personal income tax. Dividends
derived from net investment income attributable to interest from other
securities may be subject to state personal income tax. Dividends paid by
each Fund may be subject to state and local corporate income and/or franchise
taxes. In certain jurisdictions, shareholders of each Fund may be subject to
state and/or local taxes with respect to ownership of Fund shares or
distributions from each Fund. Investors also should be aware that state
and/or local taxes other than those described above may be imposed on
dividends, distributions or shares of each Fund.
Dividends derived from net investment income, together with
distributions from net realized short-term securities gains and all or a
portion of any gains realized from the sale or other disposition of certain
market discount bonds, paid by a Fund are taxable as ordinary income for
Federal income tax purposes whether or not reinvested. No dividend paid by a
Fund will qualify for the dividends received deduction allowable to certain
U.S. corporations. Distributions from net realized long-term securities gains
of each Fund, if any, generally are taxable as long-term capital gains for
Federal income tax purposes if the beneficial holder of the Fund shares is a
citizen or resident of the United States, regardless of how long the
shareholder has held shares in such Fund and whether such distributions are
received in cash or reinvested in Fund shares. The Code provides that the net
capital gains of an individual generally will not be subject to Federal
income tax at a rate in excess of 28%.
Dividends derived from net investment income, together with
distributions from net realized short-term securities gains and all or a
portion of any gains realized from the sale or other disposition of certain
market discount bonds, paid by a Fund to a foreign investor generally are
subject to U.S. nonresident withholding taxes at the rate of 30%, unless the
foreign investor claims the benefits of a lower rate specified in a tax
treaty. Distributions from net realized long-term securities gains paid by a
Fund to a foreign investor, as well as the proceeds of any redemptions from a
foreign investor's account, regardless of the extent to which gain or loss
may be realized, will not be subject to U.S. nonresident withholding tax.
However, such distributions may be subject to backup withholding, as
described below, unless the foreign investor certifies his non-U.S. residency
status.
Each Fund intends to provide its shareholders with an annual
statement which sets forth the percentage of dividends and distributions paid
by the Fund that is attributable to interest income exempt from state and
local income taxes. You also will receive periodic summaries of your account
which will include information as to dividends and distributions from
securities gains, if any, paid during the year.
The exchange of shares of one fund for shares of another is treated
for Federal income tax purposes as a sale of the shares given in exchange by
the shareholder and, therefore, an exchanging shareholder may realize a
taxable gain or loss.
Page 18
Federal regulations generally require each Fund to withhold
("backup withholding") and remit to the U.S. Treasury 31% of dividends,
distributions from net realized securities gains of the Fund and the proceeds
of any redemption, regardless of the extent to which gain or loss may be
realized, paid to a shareholder if such shareholder fails to certify either
that the TIN furnished in connection with opening an account is correct or
that such shareholder has not received notice from the IRS of being subject
to backup withholding as a result of a failure to properly report taxable
dividend or interest income on a Federal income tax return. Furthermore, the
IRS may notify a Fund to institute backup withholding if the IRS determines a
shareholder's TIN is incorrect or if a shareholder has failed to properly
report taxable dividend and interest income on a Federal income tax return.
A TIN is either the Social Security number or employer
identification number of the record owner of the account. Any tax withheld as
a result of backup withholding does not constitute an additional tax imposed
on the record owner of the account, and may be claimed as a credit on the
record owner's Federal income tax return.
Management of each Fund believes that the Fund has qualified for
the fiscal year ended December 31, 1996 as a "regulated investment company"
under the Code. Each Fund intends to continue to so qualify if such
qualification is in the best interests of its shareholders. Such
qualification relieves the Fund of any liability for Federal income tax to
the extent its earnings are distributed in accordance with applicable
provisions of the Code. Each Fund is subject to a non-deductible 4% excise
tax, measured with respect to certain undistributed amounts of taxable
investment income and capital gain.
You should consult your tax adviser regarding questions as to
Federal, state or local taxes.
GENERAL INFORMATION
Each Fund was organized as an unincorporated business trust under
the laws of the Commonwealth of Massachusetts pursuant to an Agreement and
Declaration of Trust (the "Trust Agreement") dated May 14, 1993. Each Fund is
authorized to issue an unlimited number of shares of beneficial interest, par
value $.001 per share. Each share has one vote.
On December 31, 1993, all of the assets and liabilities of each
Fund's corresponding predecessor fund _ namely, Dreyfus 100% U.S. Treasury
Money Market Fund, L.P., 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. (each, a "Partnership") _ were transferred to
the relevant Fund in exchange for shares of beneficial interest of such Fund
pursuant to a proposal approved at a Meeting of Partners of each Partnership
held on December 29, 1993.
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 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.
As discussed under "Management of the Funds" in the
Page 19
Statement of Additional Information, each Fund ordinarily will not hold
shareholder meetings; however, shareholders under certain circumstances may
have the right to call a meeting of shareholders for the purpose of voting to
remove Board members.
Although each Fund is offering only its own shares, it is possible
that a Fund might become liable for any misstatement in this Prospectus about
another Fund. Each Fund's Board has considered this factor in approving the
use of this single combined Prospectus.
The Transfer Agent maintains a record of your ownership and sends
confirmations and statements of account. Each Fund sends annual and
semi-annual financial statements to all its shareholders.
Shareholder inquiries may be made by writing to the Funds at 144
Glenn Curtiss Boulevard, Uniondale, New York 11556-0144, or by calling toll
free 1-800-645-6561. In New York City, call 1-718-895-1206; outside the U.S.
and Canada, call 516-794-5452.
Page 20
APPENDIX
INVESTMENT TECHNIQUES
BORROWING MONEY -- Each TERM FUND is permitted to borrow to the extent
permitted under the 1940 Act, which permits an investment company to borrow
in an amount up to 331/3% of the value of its total assets. Each TERM FUND,
however, and the MONEY MARKET FUND currently intends to 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, such Fund will not make any additional
investments.
CERTAIN PORTFOLIO SECURITIES
U.S. TREASURY SECURITIES -- 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.
ZERO COUPON SECURITIES -- The TERM FUNDS 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.
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE
ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND IN EACH
FUND'S OFFICIAL SALES LITERATURE IN CONNECTION WITH THE OFFER OF SUCH FUND'S
SHARES, AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST
NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUNDS. THIS PROSPECTUS
DOES NOT CONSTITUTE AN OFFER IN ANY STATE IN WHICH, OR TO ANY PERSON TO WHOM,
SUCH OFFERING MAY NOT LAWFULLY BE MADE.
Page 21
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Page 23
100% U.S. Treasury
Funds
Prospectus
Registration Mark
Copy Rights 1997 Dreyfus Service Corporation
USTFp050197
Page 24
COMBINED PART B
(STATEMENT OF ADDITIONAL INFORMATION)
FOR
DREYFUS 100% U.S. TREASURY MONEY MARKET FUND
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
DREYFUS 100% U.S. TREASURY INTERMEDIATE TERM FUND
DREYFUS 100% U.S. TREASURY LONG TERM FUND
MAY 1, 1997
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 100% U.S. Treasury Short Term Fund (the "Short Term
Fund"), Dreyfus 100% U.S. Treasury Intermediate Term Fund (the "Intermediate
Term Fund") and Dreyfus 100% 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, 1997, 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 the following numbers:
Call Toll Free 1-800-645-6561
In New York City -- Call 1-718-895-1206
Outside the U.S. and Canada -- Call 516-794-5452
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.
Each Fund is a separate Massachusetts business trust with a separate
portfolio. 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 the convenience of investors to provide
investors the opportunity to consider four investment choices in one
document.
TABLE OF CONTENTS
Page
Investment Objective and Management Policies B-2
Management of the Funds B-4
Management Agreements B-8
Purchase of Shares B-12
Shareholder Services Plan B-12
Redemption of Shares B-13
Determination of Net Asset Value B-15
Shareholder Services B-16
Portfolio Transactions B-19
Dividends, Distributions and Taxes B-19
Yield and Performance Information B-20
Information About the Funds B-22
Transfer and Dividend Disbursing Agent, Custodian,
Counsel and Independent Auditors B-23
Financial Statements B-24, 32, 40 & 48
Reports of Independent Auditors B-31, 39, 47 & 55
INVESTMENT OBJECTIVE AND MANAGEMENT POLICIES
The following information supplements and should be read in conjunction with
the sections in the Prospectus entitled "Description of the Funds" and
"Appendix."
Management Policies
U.S. Treasury 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.
U.S. Treasury securities purchased on a when-issued basis and other
U.S. Treasury securities held by a Fund 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. U.S. Treasury
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 U.S. Treasury 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. A segregated account of the Fund consisting of cash or
U.S. Treasury securities at least equal at all times to the amount of the
when-issued commitments will be established and maintained at the Fund's
custodian bank. Purchasing U.S. Treasury 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 has adopted investment restrictions numbered 1 through 5 as
fundamental policies. In addition, the Money Market Fund only has adopted
investment restriction number 8 and each Term Fund has adopted investment
restriction number 9 as fundamental policies. Fundamental policies cannot
be changed, as to a Fund, without approval by the holders of a majority (as
defined in the Investment Company Act of 1940, as amended (the "1940 Act"))
of such Fund's outstanding voting shares. Investment restrictions numbered
6 and 7, with respect to each Fund, and investment restriction number 10,
with respect to the Term Funds only, are not fundamental policies and may be
changed by vote of a majority of the Fund's Board members at any time. No
Fund may:
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. 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.
7. Invest in securities of other investment companies, except as they
may be acquired as part of a merger, consolidation or acquisition of assets.
The following investment restriction number 8, which is a fundamental
policy, applies only to the Money Market Fund. The Money Market Fund may
not:
8. 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.
The following investment restrictions numbered 9, which is a
fundamental policy, and 10, which is not a fundamental policy, apply only to
the Term Funds. None of the Term Funds may:
9. 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 total assets).
10. Pledge, hypothecate, mortgage or otherwise encumber its assets,
except to the extent necessary to secure permitted borrowings.
* * *
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.
Each Fund may make commitments more restrictive than the restrictions
listed above so as to permit the sale of Fund shares in certain states.
Should a Fund determine that a commitment is no longer in the best interests
of such Fund and its investors, the Fund reserves the right to revoke the
commitment by terminating the sale of its shares in the state involved.
MANAGEMENT OF THE FUNDS
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
Chairman of the Board of Directors of Noel Group, Inc., a venture
capital company; and a director of The Muscular Dystrophy Association,
HealthPlan Services Corporation, Belding Heminway Company, Inc., a
manufacturer and marketer of industrial threads and buttons, Curtis
Industries, Inc., a national distributor of security products,
chemicals, and automotive and other hardware, and Staffing Resources,
Inc. 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 to December 31,
1994, he was a director of Mellon Bank Corporation. He is 53 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, Mr. Davis 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 55 years old and his address is 241 Central Park West,
New York, New York 10024.
*DAVID P. FELDMAN, Board Member. Mr. Feldman is a trustee of Corporate
Property Investors, a real estate investment company, and a director of
several mutual funds in the 59 Wall Street Mutual Funds Group and of
the Jeffrey Company, a private investment company. From July 1961 to
April 1997, he was Chairman and Chief Executive Officer of AT&T
Investment Management Corporation. He is 57 years old and his address
is c/o AT&T, One Oak Way, Berkeley Heights, New Jersey 07922.
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 57
years old and her address is c/o Deloitte & Touche, LLP, Two Prudential
Plaza, 180 N. Stetson Avenue, Chicago, Illinois 60601.
EUGENE McCARTHY, Board Member Emeritus. Writer and columnist; former
Senator from Minnesota from 1958 to 1970. He is 81 years old and his
address is 271 Hawlin Road, Woodville, Virginia 22749.
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 67 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
Dreyfus Corporation from August 1986 through January 1997, most
recently serving as Vice Chairman, Administration and Operations. He
is 64 years old and his address is c/o Ms. Amy Letteney, 42 White Birch
Road, New Canaan, Connecticut 06840.
SANDER VANOCUR, Board Member. Since January 1992, Mr. Vanocur 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, and from January 1994 to May
1995, he served as Visiting Professional Scholar at the Freedom Forum
Amendment Center at Vanderbilt University. From November 1989 to
November 1995, he was a director of the Damon Runyon-Walter Winchell
Cancer Research Fund. From June 1986 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. Mr. Vanocur joined ABC News in
1977. He is 69 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 Alumax, Comcast Corporation, The New England Electric
System, NOVA Corporation and a member of the board of the Carter Center
of Emory University, the Council of Foreign Relations, the National
Park Foundation, Visiting Committee of the John F. Kennedy School of
Government at Harvard University and the Economic Club of Washington.
She is 67 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 76 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.
No meetings of shareholders of a Fund will be held for the purpose of
electing Board members unless and until such time as less than a majority of
the Board members holding office have been elected by shareholders, at which
time the Board members then in office will call a shareholders' meeting for
the election of Board members of such Fund. Under the 1940 Act,
shareholders of record of not less than two-thirds of the outstanding shares
of the Fund may remove a Board member through a declaration in writing or by
vote cast in person or by proxy at a meeting called for that purpose. The
Board members are required to call a meeting of shareholders for the purpose
of voting upon the question of removal of any such Board member when
requested in writing to do so by the shareholders of record of not less than
10% of the Fund's outstanding shares.
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, 1996, the aggregate amount of compensation paid to each
Board member by the Funds and all other funds in the Dreyfus Family of Funds
for which such person is a Board member (the number of which is set forth in
parenthesis next to each Board member's total compensation) were as follows:
Total
Compensation from
Aggregate Aggregate Funds and Fund
Name of Board Compensation from Compensation from Complex Paid to
Member Money Market Fund* Each Term Fund* Board Member
Gordon J. Davis $6,500 $3,500 $ 88,536 (25)
Joseph S. DiMartino $8,125 $4,375 $517,075 (92)
David P. Feldman $6,500 $3,500 $122,257 (27)
Lynn Martin $6,500 $3,500 $ 41,666 (11)
Eugene McCarthy+ $3,250 $2,177 $ 29,041 (11)
Daniel Rose $6,500 $3,500 $ 84,593 (21)
Sander Vanocur $6,500 $3,500 $ 77,093 (21)
Anne Wexler $6,500 $3,500 $ 62,034 (16)
Rex Wilder $6,500 $3,500 $ 42,666 (11)
________________________
* Amount does not include reimbursed expenses for attending Board
meetings, which amounted to $5,658, $1,332, $1,579 and $1,232 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 and a director of the Distributor and an officer of other
investment companies advised or administered by the Manager. From
December 1991 to July 1994, she was President and Chief Compliance
Officer of Funds Distributor, Inc., the ultimate parent of which is
Boston Institutional Group, Inc. She is 39 years old.
JOHN E. PELLETIER, Vice President and Secretary. Senior Vice President and
General Counsel of the Distributor and an officer of other investment
companies advised or administered by the Manager. From February 1992
to July 1994, he served as Counsel for The Boston Company Advisors,
Inc. He is 32 years old.
ELIZABETH A. KEELEY, Vice President and Assistant Secretary. Assistant Vice
President of the Distributor since September 1995 and an officer of other
investment companies advised or administered by the Manager. She is 27
years old.
DOUGLAS C. CONROY, Vice President and Assistant Secretary. Supervisor of
Treasury Services and Administration 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. From December 1991 to
March 1993, he was employed as a Fund Accountant at The Boston
Company, Inc. He is 27 years old.
MARK A. KARPE, Vice President and Assistant Secretary. Senior Paralegal of
the Distributor and an officer of other investment companies advised
or administered by the Manager. Prior to August 1993, he was employed
as an Associate Examiner at the National Association of Securities
Dealers, Inc. He is 27 years old.
RICHARD W. INGRAM, Vice President and Assistant Treasurer. Senior Vice
President and Director of Client Services and Treasury Operations of
Funds Distributor, Inc. and an officer of other investment companies
advised or administered by the Manager. From March 1994 to November
1995, he was Vice President and Division Manager for First Data
Investor Services Group. From 1989 to 1994, he was Vice President,
Assistant Treasurer and Tax Director -- Mutual Funds at The Boston
Company, Inc. He is 41 years old.
MARY A. NELSON, Vice President and Assistant Treasurer. Vice President and
Manager of Treasury Services and Administration of 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 32 years old.
MICHAEL S. PETRUCELLI, Vice President and Assistant Treasurer. Director of
Strategic Client Initiatives for Funds Distributor, Inc. and an
officer of other investment companies advised or administered by the
Manager. From December 1989 through November 1996 he was employed
with GE Investments where he held various financial, business
development and compliance positions. He also served as Treasurer of
the GE Funds and as Director of the GE Investment Services. He is 35
years old.
JOSEPH F. TOWER, III, Vice President and Assistant Treasurer. Senior Vice
President, Treasurer and Chief Financial Officer of the Distributor 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 34 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 April 1, 1997.
MANAGEMENT AGREEMENTS
The following information supplements and should be read in conjunction
with the section in the Prospectus entitled "Management of the Funds."
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 14, 1996. 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: W.
Keith Smith, Chairman of the Board; Christopher M. Condron, President, Chief
Executive Officer, Chief Operating Officer and a director; Stephen E.
Canter, Vice Chairman, Chief Investment Officer and a director; Lawrence S.
Kash, Vice Chairman--Distribution and a director; William T. Sandalls, Jr.,
Senior Vice President and Chief Financial Officer; Mark N. Jacobs, Vice
President, General Counsel and Secretary; Patrice M. Kozlowski, Vice
President--Corporate Communications; Mary Beth Leibig, Vice President--Human
Resources; Jeffrey N. Nachman, Vice President--Mutual Fund Accounting;
Andrew S. Wasser, Vice President--Information Systems; Elvira Oslapas,
Assistant Secretary; and Mandell L. Berman, Burton C. Borgelt and Frank V.
Cahouet, 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. All purchases and sales are
reported for the Board members' review at the meeting subsequent to such
transactions.
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 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: organizational costs, 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 1% 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 1% 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, 1994, 1995 and 1996 were as follows:
Money Market Fund
1994 1995 1996
Management $ 8,214,107 $ 6,796,056 $6,308,947
fee payable
Reduction due $ 0 $ 0 $0
to undertakings
Net management $ 8,214,107 $ 6,796,056 $6,308,947
fee paid
Short Term Fund
1994 1995 1996
Management $ 1,107,463 $ 1,080,895 $1,167,392
fee payable
Reduction due $ 1,086,277 $ 518,325 $ 524,729
to undertakings
Net management $ 21,186 $ 562,570 $ 642,663
fee paid
Intermediate Term Fund
1994 1995 1996
Management $ 1,303,036 $ 1,107,741 $ 1,185,588
fee payable
Reduction due $ 0 $ 38,036 $ 266,266
to undertakings
Net management $ 1,303,036 $ 1,069,705 $ 919,322
fee paid
Long Term Fund
1994 1995 1996
Management $ 943,453 $ 802,498 $ 817,303
fee payable
Reduction due $ 0 $ 68,081 $ 254,540
to undertakings
Net management $ 943,453 $ 734,417 $ 562,763
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.
PURCHASE OF SHARES
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "How to Buy
Shares."
The Distributor. The Distributor 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. In some states, certain financial
institutions effecting transactions in Fund shares may be required to
register as dealers pursuant to state law.
Dreyfus TeleTransfer Privilege. 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 Dreyfus Transfer, Inc., the
Fund's transfer and dividend disbursing agent (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 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
"Redemption of Shares--TeleTransfer Privilege."
SHAREHOLDER SERVICES PLAN
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "Shareholder
Services Plan."
Each Fund has adopted a Shareholder Services Plan (the "Plan")
pursuant to which each Fund reimburses Dreyfus Service Corporation 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.
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 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, 1996, the fees payable
pursuant to the Plan by the Money Market Fund, Short Term Fund,
Intermediate Term Fund and Long Term Fund amounted to $1,619,385,
$433,112, $358,319 and $269,383, respectively.
REDEMPTION OF SHARES
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "How to Redeem
Shares."
Check Redemption Privilege. An investor may indicate on the
Account Application, Shareholder Services Form or by later written
request that the Fund provide Redemption Checks ("Checks") drawn on the
investor's Fund account. Checks will be sent only to the registered
owner(s) of the account and only to the address of record. The Account
Application, Shareholder Services Form or later written request must be
manually signed by the registered owner(s). Checks 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 the investor. Investors 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.
If the amount of the Check is greater than the value of the shares
in an investor's account, the Check will be returned marked
insufficient funds. Checks should not be used to close an account.
Wire Redemption Privilege. By using this Privilege, the investor
authorizes the Transfer Agent to act on wire or telephone redemption
instructions from any person representing himself or herself to be the
investor 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 the investor on the
Account Application or Shareholder Services Form, or to a correspondent
bank if the investor's 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 the
investor's bank is necessary to avoid a delay in crediting the funds to
the investor's bank account.
Investors with access to telegraphic equipment 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
Investors who do not have direct access to telegraphic equipment
may have the wire transmitted by contacting a TRT Cables operator at 1-
800-654-7171, toll free. Investors 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. Investors should be aware that if
they have selected the Dreyfus TeleTransfer Privilege, any request for
a wire redemption will be effected as a Dreyfus TeleTransfer
transaction through the Automated Clearing House ("ACH") system unless
more prompt transmittal specifically is requested. Redemption proceeds
will be on deposit in the investor's account at an ACH member bank
ordinarily two business days after receipt of the redemption request.
See "Purchase of 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. 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
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "How to Buy
Shares."
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 of 1%, 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.
New York Stock Exchange Closings. The holidays (as observed) on
which the New York Stock Exchange is closed currently are: New Year's
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day,
Labor Day, Thanksgiving and Christmas.
SHAREHOLDER SERVICES
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "Shareholder
Services."
Fund Exchanges. Shares of 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, investors must
notify the Transfer Agent of their prior ownership of fund shares and
their account number.
To request an exchange, an investor 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 the investor checks the
applicable "No" box on the Account Application, indicating that the
investor specifically refuses this privilege. By using the Telephone
Exchange Privilege, the investor authorizes the Transfer Agent to act
on telephonic instructions (including over The Dreyfus Touchr automated
telephone system) from any person representing himself or herself to be
the investor 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.
For Dreyfus-sponsored Keogh Plans, IRAs and IRAs set up under a
Simplified Employee Pension Plan ("SEP-IRAs"), with only one
participant, the minimum initial investment is $750. To exchange
shares held in corporate plans, 403(b)(7) Plans and SEP-IRAs with more
than one participant, the minimum initial investment is $100 if the
plan has at least $2,500 invested among the funds in the Dreyfus Family
of Funds. To exchange shares held in personal retirements plans, the
shares exchanged must have a current value of at least $100.
Dreyfus Auto Exchange Privilege. Dreyfus Auto-Exchange permits an
investor 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
the investor. An investor will be notified if his account falls below
the amount designated to be exchanged under this Privilege. In this
case, an investor's 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.
Fund Exchanges and the Dreyfus Auto-Exchange Privilege are
available to shareholders resident in any state in which shares of the
fund being acquired may legally be sold. Shares may be exchanged only
between accounts having identical names and other identifying
designations.
Shareholder Services Forms and prospectuses of the other funds may
be obtained by calling 1-800-645-6561. 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 Withdrawal Plan. The Automatic Withdrawal Plan
permits an investor with a $5,000 minimum account to request withdrawal
of a specified dollar amount (minimum of $50) on either a monthly or
quarterly basis. 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 the investor, the Fund or the Transfer Agent. Shares
for which certificates have been issued may not be redeemed through the
Automatic Withdrawal Plan.
Dreyfus Dividend Sweep. Dreyfus Dividend Sweep allows investors
to invest automatically their dividends or dividends and capital gain
distributions, if any, in shares of another fund in the Dreyfus Family
of Funds of which the investor is 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 which 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.
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
Fund shares.
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
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "Dividends,
Distributions and Taxes."
Management of each Fund believes that the Fund has qualified for
the fiscal year ended December 31, 1996 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 must derive less than 30% of its
annual gross income from gain on the sale of securities held for less
than three months. The term "regulated investment company" does not
imply the supervision of management or investment practices or policies
by any government agency.
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.
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 "Dividends, Distributions
and Taxes" in the Prospectus.
YIELD AND PERFORMANCE INFORMATION
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "Yield and
Performance Information."
Money Market Fund. For the seven-day period ended December 31,
1996, the Money Market Fund's yield was 4.56% and effective yield was
4.66%. 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,
1996 was 5.20%, 5.40% and 5.71%, 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, 1996 would
have been 4.93%, 5.29% and 5.53%, 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
9.310 year periods ended December 31, 1996 was 4.07%, 5.76% and 8.03%,
respectively. The Short Term Fund's average annual total return for
the 5.252 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, 1996
was 6.34%. The Intermediate Term Fund's average annual total return
for the 1, 5 and 9.767 year periods ended December 31, 1996 was 3.08%,
6.41% and 7.70%, respectively. The Long Term Fund's average annual
total return for the 1, 5 and 9.767 year periods ended December 31,
1996 was 0.87%, 7.49% and 8.31%, 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, 1996 and the
period October 1, 1991 through December 31, 1996, was 105.26% and
38.09%, respectively. The Intermediate Term Fund's total return for
the period March 27, 1987 (commencement of operations) through December
31, 1996 was 106.35%. The Long Term Fund's total return for the period
March 27, 1987 (commencement of operations) through December 31, 1996
was 118.15%. 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.
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. See "General Information."
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.
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 may also
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
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "General
Information."
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.
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.
TRANSFER AND DIVIDEND DISBURSING AGENT, CUSTODIAN,
COUNSEL AND INDEPENDENT AUDITORS
Dreyfus Transfer, Inc., 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.
For the fiscal year ended December 31, 1996, the Money Market Fund,
Short Term Fund, Intermediate Term Fund and Long Term Fund paid the
Transfer Agent $614,404, $112,665, $114,283 and $86,287, respectively.
The Bank of New York, 90 Washington Street, New York, New York
10286, is the Money Market Fund's custodian.
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. For the period May 10, 1996 (effective date of custody
agreement) through December 31, 1996, the Short Term Fund, Intermediate
Term Fund and Long Term Fund paid Mellon Bank, N.A. $10,976, $10,903
and $8,860, respectively.
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 LLP, 787 Seventh Avenue, New York, New York 10019,
independent auditors, have been selected as auditors of each Fund.
Dreyfus 100% U.S. Treasury Money Market Fund
- -----------------------------------------------------------------------------
Statement of Investments December 31, 1996
<TABLE>
<CAPTION>
Annualized
Yield on
Date of Principal
U.S. Treasury Bills--31.2% Purchase Amount Value
- ------------------------------------------------------------------ ------------- ------------ ------------
<S> <C> <C> <C>
1/2/97......................................................... 4.94% $ 894,000 $ 893,879
1/9/97......................................................... 5.04 8,437,000 8,427,658
1/16/97........................................................ 5.04 19,620,000 19,579,314
1/23/97........................................................ 5.04 10,263,000 10,231,798
2/6/97......................................................... 5.20 21,052,000 20,946,354
2/13/97........................................................ 5.06 32,094,000 31,902,328
2/20/97........................................................ 5.28 18,832,000 18,697,430
3/6/97......................................................... 5.25 45,603,000 45,189,071
3/20/97........................................................ 4.91 536,000 530,368
3/27/97........................................................ 5.15 535,000 528,659
4/3/97......................................................... 5.57 41,000,000 40,446,467
4/17/97........................................................ 5.23 14,025,000 13,814,327
5/1/97......................................................... 5.09 7,245,000 7,124,371
5/8/97......................................................... 5.18 39,682,000 38,975,054
5/15/97........................................................ 5.17 5,216,000 5,118,089
5/22/97........................................................ 5.18 3,877,000 3,800,312
5/29/97........................................................ 5.18 962,000 942,048
6/12/97........................................................ 5.16 32,957,000 32,209,535
6/19/97........................................................ 5.21 6,619,000 6,461,407
7/24/97........................................................ 5.56 61,939,000 60,084,585
8/21/97........................................................ 5.91 15,000,000 14,459,150
11/13/97....................................................... 5.37 22,530,000 21,520,418
--------------
TOTAL U.S. TREASURY BILLS (cost $401,882,622)..................... $ 401,882,622
==============
U.S. Treasury Notes--63.7%
- ------------------------------------------------------------------
7.50%, 1/31/97................................................. 5.12% $130,000,000 $ 130,228,048
4.75%, 2/15/97................................................. 5.31 5,000,000 4,995,206
6.75%, 2/28/97................................................. 5.32 78,120,000 78,288,794
6.875%, 2/28/97................................................ 5.19 318,896,000 319,696,525
6.625%, 3/31/97 ............................................... 5.11 145,000,000 145,487,715
6.875%, 3/31/97................................................ 5.24 10,293,000 10,331,598
6.875%, 4/30/97................................................ 5.15 30,000,000 30,160,466
6.125%, 5/31/97................................................ 5.23 100,000,000 100,306,260
--------------
TOTAL U.S. TREASURY NOTES (cost $819,494,612)..................... $ 819,494,612
==============
TOTAL INVESTMENTS
(cost $1,221,377,234)................................... 94.9% $1,221,377,234
====== ==============
CASH AND RECEIVABLES (NET) ................................. 5.1% $ 65,476,680
====== ==============
NET ASSETS.................................................100.0% $1,286,853,914
====== ==============
</TABLE>
See notes to financial statements.
<TABLE>
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1996
Cost Value
-------------- ---------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $1,221,377,234 $1,221,377,234
Cash............................................. 49,276,517
Interest receivable.............................. 16,935,394
Prepaid expenses and other assets................ 83,057
--------------
1,287,672,202
--------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 708,907
Accrued expenses................................. 109,381
--------------
818,288
--------------
NET ASSETS................................................................ $1,286,853,914
==============
REPRESENTED BY: Paid-in capital.................................. $1,287,032,437
Accumulated net realized gain (loss) on investments (178,523)
---------------
NET ASSETS..................................................................... $1,286,853,914
==============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized). 1,286,743,721
NET ASSET VALUE, offering and redemption price per share....................... $1.00
=====
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
Dreyfus 100% U.S. Treasury Money Market Fund
- ------------------------------------------------------------------------------
Statement of Operations Year Ended December 31, 1996
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income................................. $66,622,771
EXPENSES: Management fee--Note 2(a)......................... $6,308,947
Shareholder servicing costs--Note 2(b)............ 2,541,398
Custodian fees................................... 93,456
Trustees' fees and expenses--Note 2(c)........... 68,719
Prospectus and shareholders' reports............. 63,181
Professional fees................................ 48,418
Registration fees................................ 34,939
Miscellaneous.................................... 30,472
------------
Total Expenses.............................. 9,189,530
-------------
INVESTMENT INCOME--NET.......................................................... 57,433,241
NET REALIZED GAIN(LOSS) ONINVESTMENTS--Note 1(b)............................... (165,664)
-------------
NET INCREASEINNETASSETSRESULTINGFROMOPERATIONS................................ $57,267,577
=============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- -----------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1996 December 31, 1995
-------------------- --------------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 57,433,241 $ 69,200,745
Net realized gain (loss) on investments.............................. (165,664) (2,775)
---------------- ----------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 57,267,577 69,197,970
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................ (57,775,920) (69,042,346)
---------------- ----------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 2,384,073,030 2,069,487,084
Dividends reinvested................................................. 54,349,594 65,120,351
Cost of shares redeemed.............................................. (2,461,751,306) (2,274,810,637)
---------------- ----------------
Increase (Decrease) in Net Assets from Beneficial
Interest Transaction (23,328,682) (140,203,202)
---------------- ----------------
Total Increase (Decrease) in Net Assets........................ (23,837,025) (140,047,578)
NET ASSETS:
Beginning of Period.................................................. 1,310,690,939 1,450,738,517
---------------- ----------------
End of Period........................................................ $1,286,853,914 $ 1,310,690,939
================ ================
Undistributed investment income--net.................................... -- $ 342,679
----------------
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- --------------------------------------------------------------------------------
Financial Highlights
Reference is made to page 4 of the Fund's Prospectus dated May 1, 1997.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus 100% U.S. Treasury Money Market Fund (the "Fund") is registered under
the Investment Company Act of 1940 ("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 ("Manager") serves as the Fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund
Services, Inc. acts as the distributor of the Fund's shares, which are sold to
the public without a sales charge.
It is the Fund's policy to maintain a continuous net asset value per share of
$1.00; the Fund has adopted certain investment, portfolio valuation and dividend
and distribution policies to enable it to do so. There is no assurance, however,
that the Fund will be able to maintain a stable net asset value per share of
$1.00.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments are valued at amortized cost, which has
been determined by the Fund's Board of Trustees to represent the fair value of
the Fund's investments.
(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income is
recognized on the accrual basis. Cost of investments represents amortized cost.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. 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 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 $165,700
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1996. If not
applied, $12,900 of the carryover expires in fiscal 2003 and $152,800 expires in
fiscal 2004.
At December 31, 1996, 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 ("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.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(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 certain allocated expenses of providing personal services
and/or maintaining shareholder accounts. The services provided may include
personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended December 31, 1996, the Fund was charged an aggregate of
$1,619,385 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. Such compensation
amounted to $614,404 during the period ended December 31, 1996.
(c) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Trustee Emeritus receives 50% of such compensation.
<PAGE>
Dreyfus 100% U.S. Treasury Money Market Fund
- ------------------------------------------------------------------------------
Report of Ernst & Young LLP, Independent Auditors
Shareholders and Board of Trustees
Dreyfus 100% U.S. Treasury Money Market Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus 100% U.S. Treasury Money Market Fund, including the statement of
investments, as of December 31, 1996, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and financial highlights for each of the
years indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1996 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Dreyfus 100% U.S. Treasury Money Market Fund at December 31, 1996, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights for
each of the indicated years, in conformity with generally accepted accounting
principles.
ERNST & YOUNG LLP
New York, New York
January 29, 1997
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
STATEMENT OF INVESTMENTS DECEMBER 31, 1996
Principal
Bonds and Notes_113.8% Amount Value
______ ______
<S> <C> <C>
U.S. Treasury Bonds_4.8%
13 1/8%, 5/15/2001........................................................ $ 5,850,000 $7,379,227
13 3/4%, 8/15/2004........................................................ 1,200,000 1,727,437
______
9,106,664
______
U.S. Treasury Notes_109.0%
6 1/8%, 8/31/1998......................................................... 24,775,000 24,889,198
6%, 9/30/1998............................................................. 66,300,000 66,481,291
5 3/4%, 12/31/1998........................................................ 53,000,000 52,879,923
6 3/4%, 5/31/1999......................................................... 7,400,000 7,528,344
5 7/8%, 11/15/1999........................................................ 25,000,000 24,906,250
7 3/4%, 1/31/2000......................................................... 2,000,000 2,093,125
6 3/4%, 4/30/2000......................................................... 10,000,000 10,192,188
6 3/8%, 9/30/2001......................................................... 10,400,000 10,465,000
7 1/2%, 11/15/2001........................................................ 5,000,000 5,264,844
______
204,700,163
______
TOTAL INVESTMENTS
(cost $214,261,621)....................................................... 113.8% $213,806,827
====== ======
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (13.8%) $(25,980,491)
====== ======
NET ASSETS.................................................................. 100.0% $187,826,336
====== ======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1996
Cost Value
______ ______
ASSETS: Investments in securities_See Statement of Investments $214,261,621 $213,806,827
Cash....................................... 224,124
Interest receivable........................ 2,411,925
Receivable for shares of Beneficial Interest subscribed 2,500
Prepaid expenses and other assets.......... 16,795
______
216,462,171
______
LIABILITIES:
Due to The Dreyfus Corporation and affiliates 58,336
Payable for investment securities purchased 28,027,773
Payable for shares of Beneficial Interest redeemed 494,600
Accrued expenses........................... 55,126
______
28,635,835
______
NET ASSETS.................................................................. $187,826,336
======
REPRESENTED BY: Paid-in capital............................ $203,851,786
Accumulated net realized gain (loss) on investments (15,570,656)
Accumulated net unrealized appreciation (depreciation)
on investments_Note 4....................... (454,794)
______
NET ASSETS.................................................................. $187,826,336
======
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST
AUTHORIZED) ........................................... 12,677,691
NET ASSET VALUE, offering and redemption price per share.................... $14.82
===
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1996
INVESTMENT INCOME
INCOME Interest Income............................ $13,116,806
EXPENSES: Management fee_Note 3(a)................... $ 1,167,392
Shareholder servicing costs_Note 3(b)...... 592,827
Professional fees.......................... 39,878
Trustees' fees and expenses_Note 3(c)...... 33,978
Custodian fees_Note 3(b)................... 18,945
Registration fees.......................... 16,829
Prospectus and shareholders' reports....... 12,815
Miscellaneous.............................. 4,022
______
Total Expenses....................... 1,886,686
Less_reduction in management fee due to
undertaking_Note 3(a).................. (524,729)
______
Net Expenses......................... 1,361,957
______
INVESTMENT INCOME_NET....................................................... 11,754,849
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $(2,701,782)
Net unrealized appreciation (depreciation) on investments (1,586,270)
______
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (4,288,052)
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 7,466,797
======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
December 31, 1996 December 31, 1995
_________ _________
OPERATIONS:
Investment income_net............................................... $ 11,754,849 $ 12,424,362
Net realized gain (loss) on investments............................. (2,701,782) 756,726
Net unrealized appreciation (depreciation) on investments........... (1,586,270) 5,998,054
_______ _______
Net Increase (Decrease) in Net Assets Resulting from Operations... 7,466,797 19,179,142
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net............................................... (11,820,993) (12,391,432)
_______ _______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold....................................... 97,381,967 82,806,129
Dividends reinvested................................................ 8,806,448 8,752,599
Cost of shares redeemed............................................. (102,733,977) (82,176,313)
_______ _______
Increase (Decrease) in Net Assets from Beneficial Interest Transactions 3,454,438 9,382,415
_______ _______
Total Increase (Decrease) in Net Assets....................... (899,758) 16,170,125
NET ASSETS:
Beginning of Period................................................. 188,726,094 172,555,969
_______ _______
End of Period....................................................... $ 187,826,336 $ 188,726,094
======= =======
UNDISTRIBUTED INVESTMENT INCOME_NET..................................... ___ $ 66,144
_______ _______
Shares Shares
_______ _______
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 6,545,260 5,545,332
Shares issued for dividends reinvested.............................. 593,259 586,742
Shares redeemed..................................................... (6,927,652) (5,520,766)
_______ _______
Net Increase (Decrease) in Shares Outstanding..................... 210,867 611,308
======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
FINANCIAL HIGHLIGHTS
Reference is made to page 4 of the Fund's Prospectus dated May 1, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus 100% U.S. Treasury Short Term Fund (the "Fund") is registered
under the Investment Company Act of 1940 ("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. The Dreyfus Corporation ("Manager") serves as the
Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. ("Mellon"). Premier Mutual Fund Services, Inc. acts as the distributor
of the Fund's shares, which are sold to the public without a sales charge.
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: The Fund's investments are valued at the mean
between 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
$15,571,000 available for Federal income tax purposes to be applied against
future net securities profits, if any, realized subsequent to December 31,
1996. If not applied, $10,865,000 of the carryover expires in fiscal 2002,
$2,004,000 expires in fiscal 2003 and $2,702,000 expires in fiscal 2004.
NOTE 2_BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the
time of borrowings. For the period ended December 31, 1996, the Fund did not
borrow under the line of credit.
NOTE 3_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 value
of the Fund's average daily net assets and is payable monthly. The Manager
has undertaken from January 1, 1996 through December 31, 1997 to reduce the
management fee paid by, or reimburse such excess expenses of the Fund, to the
extent that the Fund's aggregate expenses (exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses) exceed an annual rate of
.70 of 1% of the value of the Fund's average daily net assets. The reduction
in management fee, pursuant to the undertaking, amounted to $524,729 during
the period ended December 31, 1996.
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement
would not be less than the amount required pursuant to the Agreement.
(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 certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended December 31, 1996, the Fund was charged an aggregate
of $433,112 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. Such
compensation amounted to $112,665 during the period ended December 31, 1996.
Effective May 10, 1996, the Fund entered into a custody agreement with
Mellon to provide custodial services for the Fund. During the period ended
December 31, 1996, $10,976 was charged by Mellon pursuant to the custody
agreement.
(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 and the Trustee Emeritus receives 50% of such compensation.
NOTE 4_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended December 31, 1996,
amounted to $958,172,153 and $887,474,662, respectively.
At December 31, 1996, accumulated net unrealized depreciation on
investments was $454,794, consisting of $155,812 gross unrealized
appreciation and $610,606 gross unrealized depreciation.
At December 31, 1996, 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 SHORT TERM FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS 100% U.S. TREASURY SHORT TERM FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus 100% U.S. Treasury Short Term Fund, including the statement of
investments, as of December 31, 1996, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included verification by
examination of securities held by the custodian as of December 31, 1996 and
confirmation of securities not held by the custodian by correspondence with
others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus 100% U.S. Treasury Short Term Fund, at December 31, 1996,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
January 29, 1997
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statement of Investments December 31, 1996
Principal
Bonds and Notes--108.6% Amount Value
- ---------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
13 3/4%, 8/15/2004........................................................ $12,200,000 $ 17,562,282
11 5/8%, 11/15/2004....................................................... 5,400,000 7,130,531
12%, 5/15/2005............................................................ 5,000,000 6,789,844
10 3/4%, 8/15/2005........................................................ 10,000,000 12,831,250
6 1/2%, 10/15/2006........................................................ 29,750,000 29,917,344
12%, 8/15/2013............................................................ 8,800,000 12,590,875
-------------
86,822,126
-------------
U.S. Treasury Notes--63.4%
6%, 9/30/1998............................................................. 9,500,000 9,525,977
6 3/4%, 5/31/1999......................................................... 4,650,000 4,730,649
7 1/8%, 9/30/1999......................................................... 10,000,000 10,279,688
8 3/4%, 8/15/2000......................................................... 9,000,000 9,756,563
6 1/8%, 9/30/2000......................................................... 10,000,000 9,996,875
5 3/4%, 10/31/2000........................................................ 3,000,000 2,961,094
5 1/2%, 12/31/2000........................................................ 18,000,000 17,589,375
7 3/4%, 2/15/2001......................................................... 10,000,000 10,570,313
6 3/8%, 3/31/2001......................................................... 11,000,000 11,077,344
6 3/8%, 9/30/2001......................................................... 10,500,000 10,565,625
6 1/8%, 12/31/2001........................................................ 25,000,000 24,910,157
-------------
121,963,660
-------------
TOTAL INVESTMENTS
(cost $210,069,000)...................................................... 108.6% $208,785,786
======= =============
LIABILITIES, LESS CASH AND RECEIVABLES....................................... (8.6%) $(16,489,437)
======= =============
NET ASSETS................................................................... 100.0% $192,296,349
======= =============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statement of Assets and Liabilities December 31, 1996
Cost Value
------------- -------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $210,069,000 $208,785,786
Receivable for investment securities sold........ 16,998,701
Interest receivable.............................. 3,572,379
Prepaid expenses and other assets................ 6,420
-------------
229,363,286
-------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 74,131
Cash overdraft due to Custodian.................. 16,269,375
Payable for investment securities purchased...... 20,478,125
Payable for shares of Beneficial Interest redeemed 192,629
Accrued expenses................................. 52,677
-------------
37,066,937
-------------
NET ASSETS..................................................................... $192,296,349
=============
REPRESENTED BY: Paid-in capital.................................. $211,329,742
Accumulated net realized gain (loss) on investments (17,750,179)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4.......................... (1,283,214)
-------------
NET ASSETS..................................................................... $192,296,349
=============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized). 15,156,839
NET ASSET VALUE, offering and redemption price per share....................... $12.69
======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
<TABLE>
Statement of Operations Year Ended December 31, 1996
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income................................. $14,254,946
EXPENSES: Management fee--Note 3(a)......................... $ 1,185,588
Shareholder servicing costs--Note 3(b)............ 523,001
Professional fees................................ 44,726
Trustees' fees and expenses--Note 3(c)........... 33,058
Registration fees................................ 20,585
Custodian fees--Note 3(b)......................... 19,467
Prospectus and shareholders' reports............. 16,505
Miscellaneous.................................... 4,119
------------
Total Expenses.............................. 1,847,049
Less--reduction in management fee due to
undertaking--Note 3(a).......................... (266,266)
------------
Net Expenses................................ 1,580,783
-------------
INVESTMENT INCOME--NET.......................................................... 12,674,163
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments............. $(3,220,201)
Net unrealized appreciation (depreciation) on investments (3,682,345)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS........................ (6,902,546)
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $ 5,771,617
=============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1996 December 31, 1995
-------------------- --------------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 12,674,163 $ 12,966,407
Net realized gain (loss) on investments.............................. (3,220,201) 8,404,823
Net unrealized appreciation (depreciation) on investments............ (3,682,345) 5,541,860
--------------- ----------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 5,771,617 26,913,090
--------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................ (12,743,881) (12,933,721)
--------------- ----------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................ 52,985,573 47,025,259
Dividends reinvested................................................. 8,428,334 8,800,668
Cost of shares redeemed.............................................. (59,115,390) (58,096,444)
--------------- ----------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions 2,298,517 (2,270,517)
--------------- ----------------
Total Increase (Decrease) in Net Assets........................ (4,673,747) 11,708,852
NET ASSETS:
Beginning of Period.................................................. 196,970,096 185,261,244
--------------- ----------------
End of Period........................................................ $192,296,349 $196,970,096
=============== ================
Undistributed investment income--net.................................... -- $ 69,718
--------------- ----------------
Shares Shares
--------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 4,149,186 3,690,380
Shares issued for dividends reinvested............................... 663,235 689,567
Shares redeemed...................................................... (4,654,680) (4,614,513)
--------------- ----------------
Net Increase (Decrease) in Shares Outstanding.................... 157,741 (234,566)
=============== ================
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
Financial Highlights
Reference is made to page 5 of the Fund's Prospectus dated May 1, 1997.
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus 100% U.S. Treasury Intermediate Term Fund (the "Fund') is registered
under the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company. The investment objective is to provide investors
with as high a level of current income as is consistent with the preservation of
capital. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon").
Premier Mutual Fund Services, Inc. acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge.
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: The Fund's investments are valued at the mean
between 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 $17,527,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1996. If not
applied, $14,530,000 of the carryover expires in fiscal 2002 and $2,997,000 of
the carryover expires in fiscal 2004.
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings. For the period ended December 31, 1996, the Fund did not borrow
under the line of credit.
NOTE 3--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 value of the
Fund's average daily net assets and is payable monthly. The Manager has
undertaken from January 1, 1996 through December 31, 1997 to reduce the
management fee paid by, or reimburse such excess expenses of the Fund, to the
extent that the Fund's aggregate expenses (exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses) exceed an annual rate of .80
of 1% of the value of the Fund's average daily
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
net assets. The reduction in management fee, pursuant to the undertaking,
amounted to $266,266 during the period ended December 31, 1996.
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(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 certain allocated expenses of providing personal services
and/or maintaining shareholder accounts. The services provided may include
personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended December 31, 1996, the Fund was charged an aggregate of
$358,319 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. Such compensation
amounted to $114,283 during the period ended December 31, 1996.
Effective May 10, 1996, the Fund entered into a custody agreement with Mellon
to provide custodial services for the Fund. During the period ended December 31,
1996, $10,903 was charged by Mellon pursuant to the custody agreement.
(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 and the Trustee Emeritus receives 50% of such compensation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended December 31, 1996,
amounted to $1,325,900,197 and $1,286,358,168, respectively.
At December 31, 1996, accumulated net unrealized depreciation on investments
was $1,283,214, consisting of $204,874 gross unrealized appreciation and
$1,488,088 gross unrealized depreciation.
At December 31, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
<PAGE>
Dreyfus 100% U.S. Treasury Intermediate Term Fund
- -------------------------------------------------------------------------------
Report of Ernst & Young LLP, Independent Auditors
Shareholders and Board of Trustees
Dreyfus 100% U.S. Treasury Intermediate Term Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus 100% U.S. Treasury Intermediate Term Fund, including the statement of
investments, as of December 31, 1996, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and financial highlights for each of the
years indicated therein. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included verification by examination of securities
held by the custodian as of December 31, 1996 and confirmation of securities not
held by the custodian by correspondence with others. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Dreyfus 100% U.S. Treasury Intermediate Term Fund at December 31, 1996, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the indicated years, in conformity with generally accepted
accounting principles.
Ernst & Young
New York, New York
January 29, 1997
<TABLE>
<CAPTION>
DREYFUS 100% U.S. TREASURY LONG TERM FUND
STATEMENT OF INVESTMENTS DECEMBER 31, 1996
Principal
Bonds and Notes-106.2% Amount Value
__________ __________
<S> <C> <C>
U.S. Treasury Bonds-75.5%
13 3/4%, 8/15/2004...................................................... $ 15,700,000 $ 22,600,641
6 1/2%, 10/15/2006...................................................... 6,000,000 6,033,750
12 3/4%, 11/15/2010..................................................... 6,500,000 9,202,579
12%, 8/15/2013.......................................................... 11,700,000 16,740,141
13 1/4%, 5/15/2014...................................................... 6,500,000 10,085,156
12 1/2%, 8/15/2014...................................................... 7,300,000 10,912,360
8 3/4%, 5/15/2017....................................................... 6,500,000 7,933,047
7 7/8%, 2/15/2021....................................................... 5,000,000 5,653,125
6 1/4%, 8/15/2023....................................................... 3,000,000 2,812,969
6 1/2%, 11/15/2026...................................................... 10,500,000 10,306,406
____________
102,280,174
____________
U.S. Treasury Notes-28.0%
6 3/4%, 5/31/1999....................................................... 4,700,000 4,781,516
6 3/8%, 9/30/2001....................................................... 8,100,000 8,150,625
6 1/8%, 12/31/2001...................................................... 25,000,000 24,910,158
____________
37,842,299
____________
U.S. Treasury Coupon Strips-2.7%
Zero Coupon, 2/15/2012.................................................. 10,000,000 3,657,144
____________
TOTAL BONDS AND NOTES
(cost $144,571,858)..................................................... $143,779,617
=============
Short-Term Investments-.2%
U.S. Treasury Bills;
4.76%, 2/6/1997
(cost $213,977)......................................................... $ 215,000 $ 213,940
=============
TOTAL INVESTMENTS
(cost $144,785,835)..................................................... 106.4% $143,993,557
====== =============
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (6.4%) $ (8,625,352)
====== =============
NET ASSETS.................................................................. 100.0% $135,368,205
====== =============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS 100% U.S. TREASURY LONG TERM FUND
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1996
Cost Value
_____________ _____________
ASSETS: Investments in securities-See Statement of Investments $144,785,835 $143,993,557
Interest receivable........................ 2,575,251
Receivable for shares of Beneficial Interest subscribed 2,979
Prepaid expenses and other assets.......... 25,510
____________
146,597,297
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 56,765
Payable for investment securities purchased 9,937,491
Payable for shares of Beneficial Interest redeemed 1,166,796
Accrued expenses and other liabilities..... 68,040
____________
11,229,092
____________
NET ASSETS.................................................................. $135,368,205
==============
REPRESENTED BY: Paid-in capital............................ $151,998,720
Accumulated net realized gain (loss) on investments (15,838,237)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4................... (792,278)
____________
NET ASSETS.................................................................. $135,368,205
==============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized) 9,262,963
NET ASSET VALUE, offering and redemption price per share.................... $14.61
=========
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS 100% U.S. TREASURY LONG TERM FUND
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1996
INVESTMENT INCOME
INCOME Interest Income............................ $10,276,552
EXPENSES: Management fee-Note 3(a)................... $ 817,303
Shareholder servicing costs-Note 3(b)...... 390,588
Professional fees.......................... 40,696
Registration fees.......................... 35,284
Trustees' fees and expenses-Note 3(c)...... 32,480
Custodian fees-Note 3(b)................... 15,188
Prospectus and shareholders' reports....... 8,790
Miscellaneous.............................. 3,948
__________
Total Expenses....................... 1,344,277
Less-reduction in management fee due to
undertaking-Note 3(a).................. (254,540)
__________
Net Expenses......................... 1,089,737
____________
INVESTMENT INCOME-NET....................................................... 9,186,815
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ (4,046,518)
Net unrealized appreciation (depreciation)
on investments (4,328,970)
__________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (8,375,488)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 811,327
============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS 100% U.S. TREASURY LONG TERM FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
December 31, 1996 December 31, 1995
_____________________ ___________________
OPERATIONS:
Investment income-net.......................................... $ 9,186,815 $ 8,944,681
Net realized gain (loss) on investments........................ (4,046,518) 13,759,643
Net unrealized appreciation (depreciation) on investments...... (4,328,970) 6,993,468
_________________ ________________
Net Increase (Decrease) in Net Assets Resulting from Operations 811,327 29,697,792
_________________ ________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.......................................... (9,238,211) (8,919,973)
_________________ ________________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.................................. 44,268,429 49,291,316
Dividends reinvested........................................... 5,804,264 5,584,615
Cost of shares redeemed........................................ (52,722,888) (52,611,558)
_________________ ________________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (2,650,195) 2,264,373
_________________ ________________
Total Increase (Decrease) in Net Assets.................... (11,077,079) 23,042,192
NET ASSETS:
Beginning of Period............................................ 146,445,284 123,403,092
_________________ ________________
End of Period.................................................. $135,368,205 $146,445,284
================= ================
Undistributed investment income-net.............................. __ $ 51,396
_________________ ________________
Shares Shares
_________________ ________________
CAPITAL SHARE TRANSACTIONS:
Shares sold.................................................... 3,020,450 3,428,990
Shares issued for dividends reinvested......................... 398,509 386,344
Shares redeemed................................................ (3,600,328) (3,677,742)
_________________ ________________
Net Increase (Decrease) in Shares Outstanding................ (181,369) 137,592
================= ================
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS 100% U.S. TREASURY LONG TERM FUND
FINANCIAL HIGHLIGHTS
Reference is made to page 5 of the Fund's Prospectus dated May 1, 1997.
DREYFUS 100% U.S. TREASURY LONG TERM FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus 100% U.S. Treasury Long Term Fund (the "Fund") is registered
under the Investment Company Act of 1940 ("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. The Dreyfus Corporation ("Manager") serves as the
Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. ("Mellon"). Premier Mutual Fund Services, Inc. acts as the distributor
of the Fund's shares, which are sold to the public without a sales charge.
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: 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
$15,838,000 available for Federal income tax purposes to be applied against
future net securities profits, if any, realized subsequent to December 31,
1996. If not applied, $11,792,000 of the carryover expires in fiscal 2002 and
$4,046,000 expires in fiscal 2004.
NOTE 2-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the
time of borrowings. For the period ended December 31, 1996, the Fund did not
borrow under the line of credit.
NOTE 3-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 value
of the Fund's average daily net assets and is payable monthly. The Manager
has undertaken from January 1, 1996 through December 31, 1997 to reduce the
management fee paid by, or reimburse such excess expenses of the Fund, to the
extent that the Fund's aggregate annual expenses (exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses) exceed an
annual rate of .80 of 1% of the value of the Fund's average daily net assets.
The reduction in management fee, pursuant to the undertaking, amounted to
$254,540 during the period ended December 31, 1996.
DREYFUS 100% U.S. TREASURY LONG TERM FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement
would not be less than the amount required pursuant to the Agreement.
(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 certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended December 31, 1996, the Fund was charged an aggregate
of $269,383 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. Such
compensation amounted to $86,287 during the period ended December 31, 1996.
Effective May 10, 1996 , the Fund entered into a custody agreement with
Mellon to provide custodial services for the Fund. During the period ended
December 31, 1996, $8,860 was charged by Mellon pursuant to the custody
agreement.
(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 and the Trustee Emeritus receives 50% of such compensation.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended December 31, 1996,
amounted to $1,001,286,870 and $987,725,046, respectively.
At December 31, 1996, accumulated net unrealized depreciation on
investments was $792,278, consisting of $305,141 gross unrealized
appreciation and $1,097,419 gross unrealized depreciation.
At December 31, 1996, 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
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus 100% U.S. Treasury Long Term Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus 100% U.S. Treasury Long Term Fund, including the statement of
investments, as of December 31, 1996, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included verification by
examination of securities held by the custodian as of December 31, 1996 and
confirmation of securities not held by the custodian by correspondence with
the others. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus 100% U.S. Treasury Long Term Fund at December 31, 1996,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
[Ernst & Young LLP signature logo]
New York, New York
January 29, 1997
DREYFUS 100% U.S. TREASURY INTERMEDIATE TERM FUND
PART C. OTHER INFORMATION
_________________________
Item 24. Financial Statements and Exhibits. - List
_______ _________________________________________
(a) Financial Statements:
Included in Part A of the Registration Statement
Condensed Financial Information for the period from March 27,
1987 (commencement of operations) to December 31, 1987 and
for each of the nine years in the period ended December 31,
1996.
Included in Part B of the Registration Statement:
Statement of Investments--December 31, 1996
Statement of Assets and Liabilities--December 31, 1996
Statement of Operations--year ended December 31, 1996
Statement of Changes in Net Assets--for each of the
years ended December 31, 1995 and 1996
Notes to Financial Statements
Report of Ernst & Young LLP, Independent Auditors, dated
January 29, 1997
All schedules and other financial statement information, for which provision
is made in the applicable accounting regulations of the Securities and
Exchange Commission, are either omitted because they are not required under
the related instructions, they are inapplicable, or the required information
is presented in the financial statements or notes thereto which are included
in Part B of the Registration Statement.
Item 24. Financial Statements and Exhibits. - List (continued)
_______ _____________________________________________________
(b) Exhibits:
(1) Registrant's Agreement and Declaration of Trust is
incorporated by reference to Exhibit (1) of Post-Effective
Amendment No. 10 to the Registration Statement on Form N-1A, filed
on October 19, 1993.
(2) Registrant's By-Laws, as amended, are incorporated by
reference to Exhibit (2) of Post-Effective Amendment No. 10 to the
Registration Statement on Form N-1A, filed on October 19, 1993.
(5) 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 February 28, 1995.
(6) 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 February 28, 1995.
(8) Custody Agreement is incorporated by reference to Exhibit (8)
of Post-Effective Amendment No. 15 to the Registration Statement
on Form N-1A, filed on April 17, 1996.
(9) 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 February 28, 1995.
(10) Opinion and consent of Registrant's counsel is incorporated
by reference to Exhibit (10) of Post-Effective Amendment No. 12 to
the Registration Statement on Form N-1A, filed on April 14, 1994.
(11) Consent of Independent Auditors.
(16) Schedules of Computation of Performance Data is incorporated
by reference to Exhibit (16) of Post-Effective Amendment No. 11 to
the Registration Statement on Form N-1A, filed on December 30,
1993.
(17) Financial Data Schedule.
Item 24. Financial Statements and Exhibits. - List (continued)
_______ _____________________________________________________
Other Exhibits
______________
(a) Powers of Attorney of the Trustees and officers.
(b) Certificates of Secretary is incorporated by reference
to Other Exhibit (b) of Post Effective Amendment
No. 13 to the Registration Statement on Form N-1A, filed
on February 25, 1995.
Item 25. Persons Controlled by or under Common Control with Registrant.
_______ ______________________________________________________________
Not Applicable
Item 26. Number of Holders of Securities.
_______ ________________________________
(1) (2)
Number of Record
Title of Class Holders as of April 1, 1997
______________ _____________________________
Beneficial Interest 6,018
(Par value $.001)
Item 27. Indemnification
_______ _______________
Reference is made to Article EIGHT of the Registrant's Agreement
and Declaration of Trust previously filed as Exhibit
1 to Post-Effective Amendment No. 10 to the Registration
Statement on Form N-1A on October 19, 1993. The application of
these provisions is limited by Article 10 of the Registrant's
By-Laws previously filed as Exhibit 2 to Post-Effective
Amendment No. 10 to the Registration Statement on Form N-1A on
October 19, 1993 and by the following undertaking set forth in
the rules promulgated by the Securities and Exchange
Commission: Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to trustees,
officers and controlling persons of the registrant pursuant to
the foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in such Act and is, therefore, unenforceable.
Item 27. Indemnification (continued)
_______ _______________
In the event that a claim for indemnification against such
liabilities (other than the payment by the registrant of
expenses incurred or paid by a trustee, officer or controlling
person of the registrant in the successful defense of any
action, suit or proceeding) is asserted by such trustee,
officer of controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of
its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public
policy as expressed in such Act and will be governed by the
final adjudication of such issue.
Reference is made to the Distribution Agreement filed as Exhibit
(6) of Post-Effective Amendment No. 13 to the Registration
Statement on Form N-1A, filed on February 28,
1995.
Item 28. 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, is a
registered broker-dealer. Dreyfus Management, Inc., another
wholly-owned subsidiary, provides investment management
services to various pension plans, institutions and
individuals.
Item 28. Business and Other Connections of Investment Adviser (continued)
________ ________________________________________________________________
Officers and Directors of Investment Adviser
____________________________________________
Name and Position
with Dreyfus Other Businesses
_________________ ________________
MANDELL L. BERMAN Real estate consultant and private investor
Director 29100 Northwestern Highway, Suite 370
Southfield, Michigan 48034;
Past Chairman of the Board of Trustees:
Skillman Foundation;
Member of The Board of Vintners Intl.
BURTON C. BORGELT Chairman Emeritus of the Board and
Director Past Chairman, Chief Executive Officer and
Director:
Dentsply International, Inc.
570 West College Avenue
York, Pennsylvania 17405;
Director:
DeVlieg-Bullard, Inc.
1 Gorham Island
Westport, Connecticut 06880
Mellon Bank Corporation***;
Mellon Bank, N.A.***
FRANK V. CAHOUET Chairman of the Board, President and
Director Chief Executive Officer:
Mellon Bank Corporation***;
Mellon Bank, N.A.***;
Director:
Avery Dennison Corporation
150 North Orange Grove Boulevard
Pasadena, California 91103;
Saint-Gobain Corporation
750 East Swedesford Road
Valley Forge, Pennsylvania 19482;
Teledyne, Inc.
1901 Avenue of the Stars
Los Angeles, California 90067
W. KEITH SMITH Chairman and Chief Executive Officer:
Chairman of the Board The Boston Company****;
Vice Chairman of the Board:
Mellon Bank Corporation***;
Mellon Bank, N.A.***;
Director:
Dentsply International, Inc.
570 West College Avenue
York, Pennsylvania 17405
CHRISTOPHER M. CONDRON Vice Chairman:
President, Chief Mellon Bank Corporation***;
Executive Officer, The Boston Company****;
Chief Operating Deputy Director:
Officer and a Mellon Trust***;
Director Chief Executive Officer:
The Boston Company Asset Management,
Inc.****;
President:
Boston Safe Deposit and Trust Company****
STEPHEN E. CANTER Director:
Vice Chairman and The Dreyfus Trust Company++;
Chief Investment Officer, Formerly, Chairman and Chief Executive Officer:
and a Director Kleinwort Benson Investment Management
Americas Inc.*
LAWRENCE S. KASH Chairman, President and Chief
Vice Chairman-Distribution Executive Officer:
and a Director The Boston Company Advisors, Inc.
53 State Street
Exchange Place
Boston, Massachusetts 02109;
Executive Vice President and Director:
Dreyfus Service Organization, Inc.**;
Director:
Dreyfus America Fund+++;
The Dreyfus Consumer Credit Corporation*;
The Dreyfus Trust Company++;
Dreyfus Service Corporation*;
World Balanced Fund++++;
President:
The Boston Company****;
Laurel Capital Advisors***;
Boston Group Holdings, Inc.;
Executive Vice President:
Mellon Bank, N.A.***;
Boston Safe Deposit and Trust
Company****
WILLIAM T. SANDALLS, JR. Director:
Senior Vice President and Dreyfus Partnership Management, Inc.*;
Chief Financial Officer Seven Six Seven Agency, Inc.*;
President and Director:
Lion Management, Inc.*;
Executive Vice President and Director:
Dreyfus Service Organization, Inc.*;
Vice President, Chief Financial Officer and
Director:
Dreyfus Acquisition Corporation*;
Dreyfus America Fund+++;
World Balanced Fund++++;
Vice President and Director:
The Dreyfus Consumer Credit Corporation*;
The Truepenny Corporation*;
Treasurer, Financial Officer and Director:
The Dreyfus Trust Company++;
Treasurer and Director:
Dreyfus Management, Inc.*;
Dreyfus Personal Management, Inc.*;
Dreyfus Service Corporation*;
Major Trading Corporation*;
Formerly, President and Director:
Sandalls & Co., Inc.
MARK N. JACOBS Vice President, Secretary and Director:
Vice President, Lion Management, Inc.*;
General Counsel Secretary:
and Secretary The Dreyfus Consumer Credit Corporation*;
Dreyfus Management, Inc.*;
Assistant Secretary:
Dreyfus Service Organization, Inc.**;
Major Trading Corporation*;
The Truepenny Corporation*
PATRICE M. KOZLOWSKI None
Vice President-
Corporate Communications
MARY BETH LEIBIG None
Vice President-
Human Resources
JEFFREY N. NACHMAN President and Director:
Vice President-Mutual Fund Dreyfus Transfer, Inc.
Accounting One American Express Plaza
Providence, Rhode Island 02903
ANDREW S. WASSER Vice President:
Vice President-Information Mellon Bank Corporation***
Services
ELVIRA OSLAPAS Assistant Secretary:
Assistant Secretary Dreyfus Service Corporation*;
Dreyfus Management, Inc.*;
Dreyfus Acquisition Corporation, Inc.*;
The Truepenny Corporation+
______________________________________
* The address of the business so indicated is 200 Park Avenue, New
York, New York 10166.
** The address of the business so indicated is 131 Second Street, Lewes,
Delaware 19958.
*** The address of the business so indicated is One Mellon Bank Center,
Pittsburgh, Pennsylvania 15258.
**** The address of the business so indicated is One Boston Place, Boston,
Massachusetts 02108.
+ The address of the business so indicated is Atrium Building, 80 Route
4 East, Paramus, New Jersey 07652.
++ 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 69, Route 'd'Esch,
L-1470 Luxembourg.
++++ The address of the business so indicated is 69, Route 'd'Esch,
L-2953 Luxembourg.
Item 29. 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
24) Dreyfus Growth and Income Fund, Inc.
25) Dreyfus Growth and Value Funds, Inc.
26) Dreyfus Growth Opportunity Fund, Inc.
27) Dreyfus Income Funds
28) Dreyfus Institutional Money Market Fund
29) Dreyfus Institutional Short Term Treasury Fund
30) Dreyfus Insured Municipal Bond Fund, Inc.
31) Dreyfus Intermediate Municipal Bond Fund, Inc.
32) Dreyfus International Funds, Inc.
33) Dreyfus Investment Grade Bond Funds, Inc.
34) The Dreyfus/Laurel Funds, Inc.
35) The Dreyfus/Laurel Funds Trust
36) The Dreyfus/Laurel Tax-Free Municipal Funds
37) Dreyfus LifeTime Portfolios, Inc.
38) Dreyfus Liquid Assets, Inc.
39) Dreyfus Massachusetts Intermediate Municipal Bond Fund
40) Dreyfus Massachusetts Municipal Money Market Fund
41) Dreyfus Massachusetts Tax Exempt Bond Fund
42) Dreyfus MidCap Index Fund
43) Dreyfus Money Market Instruments, Inc.
44) Dreyfus Municipal Bond Fund, Inc.
45) Dreyfus Municipal Cash Management Plus
46) Dreyfus Municipal Money Market Fund, Inc.
47) Dreyfus New Jersey Intermediate Municipal Bond Fund
48) Dreyfus New Jersey Municipal Bond Fund, Inc.
49) Dreyfus New Jersey Municipal Money Market Fund, Inc.
50) Dreyfus New Leaders Fund, Inc.
51) Dreyfus New York Insured Tax Exempt Bond Fund
52) Dreyfus New York Municipal Cash Management
53) Dreyfus New York Tax Exempt Bond Fund, Inc.
54) Dreyfus New York Tax Exempt Intermediate Bond Fund
55) Dreyfus New York Tax Exempt Money Market Fund
56) Dreyfus 100% U.S. Treasury Intermediate Term Fund
57) Dreyfus 100% U.S. Treasury Long Term Fund
58) Dreyfus 100% U.S. Treasury Money Market Fund
59) Dreyfus 100% U.S. Treasury Short Term Fund
60) Dreyfus Pennsylvania Intermediate Municipal Bond Fund
61) Dreyfus Pennsylvania Municipal Money Market Fund
62) Dreyfus Premier California Municipal Bond Fund
63) Dreyfus Premier Equity Funds, Inc.
64) Dreyfus Premier Global Investing, Inc.
65) Dreyfus Premier GNMA Fund
66) Dreyfus Premier Growth Fund, Inc.
67) Dreyfus Premier Insured Municipal Bond Fund
68) Dreyfus Premier Municipal Bond Fund
69) Dreyfus Premier New York Municipal Bond Fund
70) Dreyfus Premier State Municipal Bond Fund
71) Dreyfus Premier Value Fund
72) Dreyfus S&P 500 Index Fund
73) Dreyfus Short-Intermediate Government Fund
74) Dreyfus Short-Intermediate Municipal Bond Fund
75) The Dreyfus Socially Responsible Growth Fund, Inc.
76) Dreyfus Stock Index Fund, Inc.
77) Dreyfus Tax Exempt Cash Management
78) The Dreyfus Third Century Fund, Inc.
79) Dreyfus Treasury Cash Management
80) Dreyfus Treasury Prime Cash Management
81) Dreyfus Variable Investment Fund
82) Dreyfus Worldwide Dollar Money Market Fund, Inc.
83) General California Municipal Bond Fund, Inc.
84) General California Municipal Money Market Fund
85) General Government Securities Money Market Fund, Inc.
86) General Money Market Fund, Inc.
87) General Municipal Bond Fund, Inc.
88) General Municipal Money Market Fund, Inc.
89) General New York Municipal Bond Fund, Inc.
90) 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 Compliance Treasurer
Officer
Joseph F. Tower, III+ Senior Vice President, Treasurer Vice President
and Chief Financial Officer and Assistant
Treasurer
John E. Pelletier+ Senior Vice President, General Vice President
Counsel, Secretary and Clerk and Secretary
Roy M. Moura+ First Vice President None
Dale F. Lampe+ Vice President None
Mary A. Nelson+ Vice President Vice President
and Assistant
Treasurer
Paul Prescott+ Vice President None
Elizabeth A. Keeley++ Assistant Vice President Vice President
and Assistant
Secretary
Jean M. O'Leary+ Assistant Secretary and None
Assistant Clerk
John W. Gomez+ Director None
William J. Nutt+ Director None
________________________________
+ Principal business address is One Exchange Place, Boston, Massachusetts
02109.
++ Principal business address is 200 Park Avenue, New York, New York
10166.
Item 30. 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. Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, Pennsylvania 15258
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 31. Management Services
_______ ___________________
Not Applicable
Item 32. Undertakings
________ ____________
(1) To call a meeting of shareholders for the purpose of voting upon
the question of removal of a Board member or Board members when
requested in writing to do so by the holders of at least 10% of
the Registrant's outstanding shares and in connection with such
meeting to comply with the provisions of Section 16(c) of the
Investment Company Act of 1940 relating to shareholder
communications.
(2) To furnish each person to whom a prospectus is delivered with a
copy of the Fund's latest Annual Report to Shareholders, upon
request and without charge.
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 of 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 11th day of April, 1997.
DREYFUS 100% U.S. TREASURY INTERMEDIATE TERM FUND
BY: /s/Marie E. Connolly*
_____________________________________
MARIE E. CONNOLLY, PRESIDENT AND TREASURER
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.
Signatures Title Date
___________________________ ______________________________ ___________
/s/ Marie E. Connolly* President and Treasurer 4/11/97
______________________________ (Principal Executive, Financial
Marie E. Connolly and Accounting Officer)
/s/ Joseph S. DiMartino* Chairman of the Board 4/11/97
______________________________ of Trustees
Joseph S. DiMartino
/s/ Gordon J. Davis* Trustee 4/11/97
______________________________
Gordon J. Davis
/s/ David P. Feldman* Trustee 4/11/97
______________________________
David P. Feldman
/s/ Lynn Martin* Trustee 4/11/97
______________________________
Lynn Martin
/s/ Daniel Rose* Trustee 4/11/97
______________________________
Daniel Rose
/s/ Philip L. Toia* Trustee 4/11/97
______________________________
Philip L. Toia
/s/ Sander Vanocur* Trustee 4/11/97
______________________________
Sander Vanocur
/s/ Anne Wexler* Trustee 4/11/97
______________________________
Anne Wexler
/s/ Rex Wilder* Trustee 4/11/97
______________________________
Rex Wilder
*BY: /s/ Elizabeth A. Keeley
_____________________
Elizabeth A. Keeley,
Attorney-in-Fact
DREYFUS 100% U.S. TREASURY INTERMEDIATE TERM FUND
Post-Effective Amendment No. 17 to the
Registration Statement on Form N-1A under
the Securities Act of 1933 and
the Investment Company Act of 1940
_______________
EXHIBITS
_______________
INDEX OF EXHIBITS
_________________
(11) Consent of Independent Auditors
(17) Financial Data Schedule
Other Exhibits
______________
(a) Powers of Attorney
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the captions "Condensed
Financial Information" and "Transfer and Dividend Disbursing Agent,
Custodian, Counsel and Independent Auditors" and to the use of our report
dated January 29, 1997, in this Registration Statement (Form N-1A No. 33-00824)
of Dreyfus 100% U.S. Treasury Intermediate Term Fund.
ERNST & YOUNG LLP
New York, New York
April 15, 1997
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000779131
<NAME> DREYFUS 100% U.S. TREAS INTERMED TERM FUND EXHIBIT (17)
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 210069
<INVESTMENTS-AT-VALUE> 208786
<RECEIVABLES> 20571
<ASSETS-OTHER> 6
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 229363
<PAYABLE-FOR-SECURITIES> 20478
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 16589
<TOTAL-LIABILITIES> 37067
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 211329
<SHARES-COMMON-STOCK> 15157
<SHARES-COMMON-PRIOR> 14999
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (17750)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1283)
<NET-ASSETS> 192296
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 14255
<OTHER-INCOME> 0
<EXPENSES-NET> 1581
<NET-INVESTMENT-INCOME> 12674
<REALIZED-GAINS-CURRENT> (3220)
<APPREC-INCREASE-CURRENT> (3682)
<NET-CHANGE-FROM-OPS> 5772
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (12744)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4149
<NUMBER-OF-SHARES-REDEEMED> (4655)
<SHARES-REINVESTED> 663
<NET-CHANGE-IN-ASSETS> (4674)
<ACCUMULATED-NII-PRIOR> 70
<ACCUMULATED-GAINS-PRIOR> (14530)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1186
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1847
<AVERAGE-NET-ASSETS> 197598
<PER-SHARE-NAV-BEGIN> 13.13
<PER-SHARE-NII> .82
<PER-SHARE-GAIN-APPREC> (.44)
<PER-SHARE-DIVIDEND> (.82)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.69
<EXPENSE-RATIO> .008
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
OTHER EXHIBITS (a)
POWER OF ATTORNEY
The undersigned hereby constitute and appoint Elizabeth A. Bachman,
Marie E. Connolly, Richard W. Ingram, Mark A. Karpe and John E. Pelletier,
and each of them, with full power to act without the other, his or her true
and lawful attorney-in-fact and agent, with full power of substitution and
resubstitution, for him or her, and in his or her name, place and stead, in
any and all capacities (until revoked in writing) to sign any and all
amendments to the Registration Statement of each Fund enumerated on Exhibit A
hereto (including post-effective amendments and amendments thereto), and to
file the same, with all exhibits thereto, and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and authority to
do and perform each and every act and thing ratifying and confirming all that
said attorneys-in-fact and agents or any of them, or their or his or her
substitute or substitutes, may lawfully do or cause to be done by virtue
hereof.
________________________________________ October 14, 1996
Gordon J. Davis
________________________________________ October 14, 1996
Joseph S. DiMartino
________________________________________ October 14, 1996
David P. Feldman
________________________________________ October 14, 1996
Lynn Martin
________________________________________ October 14, 1996
Daniel Rose
________________________________________ October 14, 1996
Sander Vanocur
________________________________________ October 14, 1996
Anne Wexler
________________________________________ October 14, 1996
Rex Wilder
EXHIBIT A
Dreyfus Global Growth Fund
Premier Global Investing, Inc.
Premier Strategic Growth Fund
Dreyfus BASIC GNMA Fund
Dreyfus 100% U.S. Treasury Short Term Fund
Dreyfus 100% U.S. Treasury Intermediate Term Fund
Dreyfus 100% U.S. Treasury Long Term Fund
Dreyfus 100% U.S. Treasury Money Market Fund
Dreyfus Florida Municipal Money Market Fund
Dreyfus Florida Intermediate Municipal Bond Fund
Dreyfus New Jersey Municipal Bond Fund, Inc.
Dreyfus New York Insured Tax Exempt Bond Fund
POWER OF ATTORNEY
The undersigned hereby constitutes and appoints Elizabeth A. Keeley,
Marie E. Connolly, Richard W. Ingram, Mark A. Karpe and John E. Pelletier,
and each of them, with full power to act without the other, his true and
lawful attorney-in-fact and agent, with full power of substitution and
resubstitution, for him, and in his name, place and stead, in any and all
capacities (until revoked in writing) to sign any and all amendments to the
Registration Statement of Dreyfus Global Growth Fund, Dreyfus Premier Global
Investing, Inc., Dreyfus BASIC GNMA Fund, Dreyfus 100% U.S. Treasury Short
Term Fund, Dreyfus 100% U.S. Treasury Intermediate Term Fund, Dreyfus 100%
U.S. Treasury Long Term Fund, Dreyfus 100% U.S. Treasury Money Market Fund,
Dreyfus Florida Municipal Money Market Fund, Dreyfus Florida Intermediate
Municipal Bond Fund, Dreyfus New Jersey Municipal Bond Fund, Inc. and Dreyfus
New York Insured Tax Exempt Bond Fund (including post-effective amendments
and amendments thereto), and to file the same, with all exhibits thereto, and
other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of
them, full power and authority to do and perform each and every act and thing
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or their or his or her substitute or substitutes, may lawfully do or
cause to be done by virtue hereof.
________________________________________ April 11, 1997
Philip L. Toia
