LETTER TO SHAREHOLDERS
Dear Shareholder:
Dreyfus Treasury Cash Management completed its latest fiscal year on July
31, 1994 in an environment of rising interest rates.
Accordingly, the yield for this twelve-month period was 3.22% for the
Class A shares. After taking into account the effect of compounding, the
effective yield was 3.26%. For the Class B shares, which were introduced
January 10, 1994, the annualized yield was 3.19%, and the annualized
effective yield was 3.24%.*
The fiscal year for this Fund started off in a very different
environment, marked by low interest rates and the beginnings of recovery from
the last recession.
As year-end approached, however, that changed drastically. There were
sharp increases in a number of economic indicators in the last calendar
quarter of 1993 and in January, 1994. These changes impelled the Federal
Reserve Board in February to initiate a series of increases in interest rates
in an effort to head off a return of inflation. By the end of the Fund's
fiscal period, there had been four tightening moves by the Federal Reserve
and a fifth one in mid-August.
While the economy was still slack, the Fund was better off with extended
maturities. However, as the picture began to change, we thought it prudent to
shorten average maturities in the portfolio. Since there is no clear
indication yet that interest rates have levelled off, we are keeping the Fund
in a defensive position, with fairly short average maturities. These of
course can be lengthened if and when the monetary outlook changes.
As we see the picture now, the U.S. economy continues to strengthen, even
though the last few weeks have seen a modest slackening in some areas, such
as housing starts and auto sales.
However, a cooling off in some sectors of the economy is exactly what the
Federal Reserve had in mind in initiating its anti-inflation program. Thus,
no one should be dismayed if some of the froth is skimmed off the economy, as
long as the basic thrust of the economic expansion continues.
The Federal Reserve obviously believes that, in the long run, an
expanding economy without inflationary excesses is better for all concerned.
If this policy works out, we would expect interest rates to stabilize at some
point down the road. We will of course adjust the Fund's investment posture
to take account of such changes in economic conditions.
We appreciate your confidence in this Fund and look forward to continuing
to serve your cash management needs.
Sincerely,
(Patricia Larkin Signature Logo)
Patricia Larkin
Portfolio Manager
August 18, 1994
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested
monthly.
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<CAPTION>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF INVESTMENTS JULY 31, 1994
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS--53.4% PURCHASE AMOUNT VALUE
------------ -------------- -------------
<S> <C> <C> <C>
8/25/94.................................................... 3.23% $ 25,000,000 $ 24,947,833
9/22/94.................................................... 4.02 390,000,000 387,762,919
10/27/94................................................... 4.39 100,000,000 98,951,166
11/10/94................................................... 4.46 100,000,000 98,765,556
11/17/94................................................... 3.53 50,000,000 49,488,500
12/8/94.................................................... 4.55 50,000,000 49,202,708
12/15/94................................................... 3.57 25,000,000 24,674,167
1/5/95..................................................... 4.81 50,000,000 48,975,139
1/12/95.................................................... 3.59 150,000,000 147,633,388
1/26/95.................................................... 4.78 60,000,000 58,614,566
2/9/95..................................................... 3.78 50,000,000 49,029,333
3/9/95..................................................... 4.24 32,000,000 31,205,067
----------------
TOTAL U.S. TREASURY BILLS (cost $1,069,250,342)................ $1,069,250,342
==============
REPURCHASE AGREEMENTS--46.9%
Barclays De Zoete Wedd Securities, Inc.
dated 7/29/94, due 8/1/94, in the amount of $210,073,188
(fully collateralized by $268,775,000 U.S. Treasury Bills
due from 9/1/94 to 5/4/95 and by $1,910,000 U.S. Treasury
Note, 8.50% due 5/15/95, value $214,770,044)............... 4.18% $ 210,000,000 $ 210,000,000
Daiwa Securities America Inc.
dated 7/29/94, due 8/1/94, in the amount of $150,052,500
(fully collateralized by $9,000,000 U.S. Treasury Bill
due 2/9/95 and by $140,550,000 U.S. Treasury Notes,
3.875% to 8.50%, due from 8/15/94 to 3/31/95,
value $151,716,952)........................................ 4.20 150,000,000 150,000,000
Kidder Peabody & Co., Incorporated
dated 7/29/94, due 8/1/94, in the amount of $179,413,889
(fully collateralized by $134,040,000 U.S. Treasury Bills
due from 8/4/94 to 3/9/95 and by $50,030,000 U.S. Treasury Notes
4.25% due 8/31/94 to 10/31/94, value $182,308,780)......... 4.21 179,351,000 179,351,000
Nomura Securities International, Inc.
dated 7/29/94, due 8/1/94, in the amount of $200,070,000
(fully collateralized by $107,585,000 U.S. Treasury Bills
due from 6/29/95 to 7/27/95 and $101,830,000 U.S. Treasury
Notes, 4.625% to 8.25% due from 11/15/94 to 12/31/94
value $204,317,247)........................................ 4.20 200,000,000 200,000,000
UBS Securities, Inc.
dated 7/29/94. due 8/1/94, in the amount of $200,070,000
(fully collateralized by $210,155,000 U.S. Treasury Bills
due from 9/8/94 to 5/4/95, value $204,103,336)............. 4.20 200,000,000 200,000,000
----------------
TOTAL REPURCHASE AGREEMENTS (cost $939,351,000)................ $ 939,351,000
==============
TOTAL INVESTMENTS (cost $2,008,601,342).............. 100.3% $2,008,601,342
====== ==============
LIABILITIES, LESS CASH AND RECEIVABLES............... (.3%) $ (5,409,749)
====== ==============
NET ASSETS........................................... 100.0% $2,003,191,593
====== ==============
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(including repurchase agreements of $939,351,000)_Note 1(a,b)......... $2,008,601,342
Interest receivable..................................................... 328,576
----------------
2,008,929,918
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 344,323
Accrued expenses........................................................ 5,394,002 5,738,325
----------- -------------
NET ASSETS ................................................................ $2,003,191,593
==============
REPRESENTED BY:
Paid-in capital......................................................... $2,003,200,112
Accumulated net realized (loss) on investments.......................... (8,519)
--------------
NET ASSETS at value......................................................... $2,003,191,593
==============
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 1,982,589,760
==============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 20,610,352
==============
NET ASSET VALUE per share:
Class A Shares
($1,982,581,530 / 1,982,589,760 shares)............................... $1.00
=====
Class B Shares
($20,610,063 / 20,610,352 shares)..................................... $1.00
=====
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF OPERATIONS YEAR ENDED JULY 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $81,199,428
EXPENSES:
Management fee--Note 2(a)............................................. $4,804,128
Custodian fees........................................................ 117,492
Shareholder servicing costs_Note 2(c)................................. 53,338
Distribution fees (Class B shares)_Note 2(b).......................... 15,588
Registration fees..................................................... 9,083
Legal fees............................................................ 5,899
Prospectus and shareholders' reports.................................. 1,691
Trustees' fees and expenses_Note 2(d)................................. 531
Miscellaneous......................................................... 16,710
------------
5,024,460
Less_reduction in management fee due to
undertaking_Note 2(a)............................................. 204,581
------------
TOTAL EXPENSES.................................................. 4,819,879
-------------
INVESTMENT INCOME--NET...................................................... 76,379,549
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b)............................... (8,519)
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $76,371,030
=============
See notes to financial statements.
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<TABLE>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JULY 31,
----------------------------------
1993 1994
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 104,908,642$ 76,379,549
Net realized gain (loss) on investments.............................. 10,783 (8,519)
----------------- ----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... 104,919,425 76,371,030
----------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares..................................................... (104,908,642) (76,172,112)
Class B shares..................................................... ____ (207,437)
Net realized gain on investments:
Class A shares..................................................... ____ (43,474)
Class B shares..................................................... ____ ____
----------------- ----------------
TOTAL DIVIDENDS................................................ (104,908,642) (76,423,023)
----------------- ----------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares..................................................... 26,869,739,941 19,349,325,990
Class B shares..................................................... ____ 55,465,288
Dividends reinvested:
Class A shares..................................................... 18,355,341 12,706,563
Class B shares..................................................... ____ 86,022
Cost of shares redeemed:
Class A shares..................................................... (28,584,557,782) (19,786,003,593)
Class B shares..................................................... ____ (34,940,958)
----------------- ----------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS. (1,696,462,500) (403,360,688)
----------------- ----------------
TOTAL (DECREASE) IN NET ASSETS........................... (1,696,451,717) (403,412,681)
NET ASSETS:
Beginning of year.................................................... 4,103,055,991 2,406,604,274
----------------- ----------------
End of year.......................................................... $ 2,406,604,274 $ 2,003,191,593
================= ================
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS TREASURY CASH MANAGEMENT
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.
CLASS A SHARES CLASS B SHARES
---------------------------------------------------- -----------------
YEAR ENDED JULY 31, PERIOD ENDED
----------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994 JULY 31, 1994(1)
-------- -------- -------- -------- --------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year.... $ .9996 $ .9999 $1.0000 $1.0000 $1.0000 $1.0000
-------- -------- -------- -------- --------- --------
INVESTMENT OPERATIONS:
Investment income--net................ .0824 .0688 .0452 .0310 .0322 .0177
Net realized gain on investments...... .0003 .0001 -_ -_ -_ -_
-------- -------- -------- -------- --------- --------
TOTAL FROM INVESTMENT OPERATIONS.... .0827 .0689 .0452 .0310 .0322 .0177
-------- -------- -------- -------- --------- --------
DISTRIBUTIONS:
Dividends from investment income--net. (.0824) (.0688) (.0452) (.0310) (.0322) (.0177)
Dividends from net realized gain on investments -_ -_ -_ -_ -_ -_
-------- -------- -------- -------- --------- --------
TOTAL DISTRIBUTIONS................. (.0824) (.0688) (.0452) (.0310) (.0322) (.0177)
-------- -------- -------- -------- --------- --------
Net asset value, end of year.......... $ .9999 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN................... 8.56% 7.10% 4.62% 3.14% 3.27% 3.22%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .20% .20% .20% .20% .20% .45%(2)
Ratio of net investment income to average
net assets.......................... 8.19% 6.75% 4.45% 3.12% 3.18% 3.33%(2)
Decrease reflected in above expense ratios due
to undertaking by the Manager....... .07% .06% .05% .04% .01% -_
Net Assets, end of year (000's Omitted) $1,558,493 $2,643,267 $4,103,056 $2,406,604 $1,982,582 $20,610
- ---------------------
(1) From January 10, 1994 (commencement of initial offering) to July 31, 1994.
(2) Annualized.
See notes to financial statements.
</TABLE>
DREYFUS TREASURY CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Dreyfus Service
Corporation acted as the distributor of the Fund's shares until August 24,
1994, which are sold to the public without a sales load. Dreyfus Service
Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services Inc. ("Premier") was
engaged as the Fund's distributor. Premier, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of Institutional
Administration Services, Inc., a provider of mutual fund administration
services, the parent company of which is Boston Institutional Group, Inc.
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.
On July 14, 1993, the Fund's Board of Trustees approved an amendment to
the Fund's Agreement and Declaration of Trust to provide for the issuance of
additional classes of shares of the Fund. The amendment was approved by Fund
shareholders on January 6, 1994. Effective January 10, 1994, existing Fund
shares were classified as Class A shares and an unlimited number of Class B
shares were authorized. The Fund began offering both Class A and Class B
shares on January 10, 1994. Class B shares are subject to a Service Plan
adopted pursuant to Rule 12b-1 under the Act. Other differences between the
two Classes include the services offered to and the expenses borne by each
Class and certain voting rights.
(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.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Manager, subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Fund's custodians and, pursuant
to the terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Fund will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Fund maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends from investment income-net on each business day. 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, if any, it is the policy of the Fund not to distribute such
gain.
DREYFUS TREASURY CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 taxes.
At July 31, 1994, 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 .20 of 1% of the average
daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, brokerage, interest
on borrowings and extraordinary expenses, exceed 1 1/2% of the average value
of the net assets for any full fiscal year. However, the Manager had
undertaken through January 9, 1994 to reduce the management fee paid by, or
bear such excess expenses of the Fund, to the extent that the Fund's
aggregate expenses (excluding certain expenses as described above) exceed an
annual rate of .20 of 1% of the average daily value of the Fund's net assets.
The reduction in management fee, pursuant to the undertaking, amounted to
$204,581 for the year ended July 31, 1994.
Effective January 10, 1994, the Manager, and not the Fund, is liable for
those expenses of the Fund (excluding certain expenses as described above)
other than management fee, and with respect to the Fund's Class B shares,
Rule 12b-1 Service Plan expenses.
The Manager may modify the existing undertaking provided that the Fund's
shareholders are given 90 days prior notice.
(B) Under the Service Plan ("Class B Service Plan") adopted pursuant to
Rule 12b-1 under the Act, effective January 10, 1994, the Fund pays Dreyfus
Service Corporation, at an annual rate of .25 of 1% of the value of the
Fund's Class B shares average daily net assets, for costs and expenses in
connection with advertising, marketing and distributing Class B shares and
for providing certain services to holders of Class B shares. Dreyfus Service
Corporation will make payments to one or more Services Agents (financial
institutions, securities dealers, or other industry professionals) based on
the value of the Fund's Class B shares owned by clients of the Service Agent.
During the period from January 10, 1994 through July 31, 1994, $15,588 was
charged to the Fund pursuant to the Class B Service Plan.
(C) Pursuant to the Fund's Shareholder Services Plan ("Class A
Shareholder Service Plan") the Fund reimburses Dreyfus Service Corporation an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for servicing shareholder accounts. The services
provided may include personal services relating to shareholder accounts, such
as answering shareholder inquiries regarding the Fund and providing reports
and other information, and services related to the maintenance of shareholder
accounts. During the period from August 1, 1993 through January 9, 1994, the
Fund was charged an aggregate of $37,141 pursuant to the Shareholder Services
Plan.
(D) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or Dreyfus Service Corporation.
Each trustee who is not an "affiliated person" receives an annual fee of
$3,000 and an attendance fee of $500 per meeting.
DREYFUS TREASURY CASH MANAGEMENT
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS TREASURY CASH MANAGEMENT
We have audited the accompanying statement of assets and liabilities of
Dreyfus Treasury Cash Management, including the statement of investments, as
of July 31, 1994, 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 July 31, 1994 by correspondence with the custodian and
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 Treasury Cash Management at July 31, 1994, 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 years indicated therein in conformity with generally accepted
accounting principles.
(Ernst & Young LLP Signature Logo)
New York, New York
September 9, 1994
DREYFUS TREASURY CASH MANAGEMENT
IMPORTANT TAX INFORMATION (UNAUDITED)
For State individual income tax purposes, the Fund hereby designates
37.59% of the ordinary income dividends paid during its fiscal year ended
July 31, 1994 as attributable to interest income from direct obligations of
the United States.
DREYFUS TREASURY
CASH MANAGEMENT
144 GLENN CURTISS BOULEVARD
UNIONDALE, NY 11556
MANAGER
THE DREYFUS CORPORATION
200 PARK AVENUE
NEW YORK, NY 10166
CUSTODIAN
THE BANK OF NEW YORK
90 WASHINGTON STREET
NEW YORK, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
THE SHAREHOLDER SERVICES GROUP, INC.
P.O. BOX 9671
PROVIDENCE, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 521/673AR947
DREYFUS
TREASURY
CASH
MANAGEMENT
ANNUAL REPORT
July 31, 1994
