LETTER TO SHAREHOLDERS
Dear Shareholder:
Yields on short-term Government securities have continued to rise for the
last six months, due to a combination of factors: the Federal Reserve Board's
campaign to curb inflation, and the pressures of a robustly expanding
economy.
For investors in Dreyfus Treasury Cash Management total returns over the
last six months reflect these developments.
For the six months ended January 31, 1995, the annualized yield of the
Fund's Class A shares was 4.65%. After taking into account the effect of
compounding, the annualized effective yield was 4.75%.* For Class B shares,
the corresponding yields were 4.41% and 4.50%.*
The actions of the Federal Reserve Board in raising interest rates three
times during the past six months were instrumental in shaping the yield
curve. However, the role of the expanding U.S. economy cannot be
underestimated. For most of the year, there has been steady expansion in such
critical measurements as Gross Domestic Product, utilization of factory
capacity, creation of new jobs, production of automobiles, new housing and
heavy construction.
All this has been accomplished, so far, with very modest increases in
consumer and producer prices.
Lately, there have been some signs of slowing in the rate of expansion,
along with the first signs that the costs of raw materials and semifinished
goods may be starting to rise.
At the time of this writing, it is too early to tell whether the economy
is in fact starting to slow down. If that is the case, it might not be
necessary for the Federal Reserve Board to use its powers to raise interest
rates in late May. The economy itself could conceivably act as a brake on
inflation.
However, if the indications of a so-called "soft landing" for the U.S.
economy are misleading, then the cost increases that have been noted in the
early stages of the production pipeline may soon work through to the consumer
level. In that case, increases in producer prices and in the consumer price
level would most likely persuade the Federal Reserve to take further measures
to increase the Federal Funds rate, or the discount rate, or both.
With such important questions still unresolved, we are following cautious
policies in handling the portfolio of your Fund. Our preference is to keep
average maturities shorter than we would under more stable market conditions.
This places the Fund in a good position to lengthen maturities when we detect
signs that interest rates are stabilizing, or even turning around.
As always, we will be watching economic developments closely and will not
hesitate to make portfolio adjustments as required.
Sincerely,
(Patricia A. Larkin Signature Logo)
Patricia A. Larkin
Portfolio Manager
February 23, 1995
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily
and reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF INVESTMENTS JANUARY 31, 1995 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS--47.7% PURCHASE AMOUNT VALUE
------------ -------------- -------------
<S> <C> <C> <C>
2/9/95...................................................... 3.78% $ 50,000,000 $ 49,959,555
3/9/95...................................................... 4.72 82,000,000 81,624,920
4/20/95..................................................... 5.46 200,000,000 197,701,165
5/4/95...................................................... 6.03 250,000,000 246,225,312
5/11/95..................................................... 6.12 100,000,000 98,351,376
5/18/95..................................................... 5.94 100,000,000 98,302,528
7/20/95..................................................... 6.46 50,000,000 48,531,813
12/14/95.................................................... 6.98 30,000,000 28,283,067
-------------
TOTAL U.S.TREASURY BILLS (cost $848,979,736).................... $ 848,979,736
=============
U.S. TREASURY NOTES--5.8%
10.50%, 2/15/95............................................. 5.60% $28,000,000 $ 28,020,295
3.88%, 5/1/95............................................... 6.04 25,380,000 25,239,006
8.50%, 5/15/95.............................................. 6.21 25,000,000 25,151,288
4.13%, 5/31/95.............................................. 6.07 25,000,000 24,835,368
-------------
TOTAL U.S. TREASURY NOTES (cost $103,245,957)................... $ 103,245,957
=============
REPURCHASE AGREEMENTS--49.5%
Aubrey G. Lanston & Co., Inc.
dated 1/31/95, due 2/1/95, in the amount of $100,016,111
(fully collateralized by $77,000,000 U.S. Treasury Bills
due 4/6/95 and by $25,000,000 U.S. Treasury Notes,
4.125% due 5/31/95, value $101,204,600)..................... 5.80% $100,000,000 $100,000,000
Barclays de Zoette Wedd Securities, Inc.
dated 1/31/95, due 2/1/95, in the amount of $119,601,608
(fully collateralized by $8,995,000 U.S. Treasury Bills due 2/16/95
and by $110,760,380 U.S. Treasury Notes, 3.875% to 8.50%,
due from 3/31/95 to 5/15/95, value $122,086,431)............ 5.60 119,583,000 119,583,000
J.P. Morgan Securities Inc.
dated 1/31/95, due 2/1/95, in the amount of $225,035,938
(fully collateralized by $235,192,000 U.S. Treasury Bills due from
4/27/95 to 10/19/95, value $229,503,120).................... 5.75 225,000,000 225,000,000
Lehman Government Securities, Inc.
dated 1/31/95, due 2/1/95, in the amount of $71,011,439
(fully collateralized by $71,615,000 U.S. Treasury Notes, 3.875%
to 10.375% due from 5/15/95 to 8/31/95, value $72,426,264).. 5.80 71,000,000 71,000,000
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1995 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
REPURCHASE AGREEMENTS (CONTINUED) PURCHASE AMOUNT VALUE
------------ -------------- -------------
- -----------------
Nomura Securities, International, Inc.
dated 1/31/95, due 2/1/95, in the amount of $140,022,361
(fully collateralized by $144,795,000 U.S. Treasury Bills due
4/27/95, value $142,804,069)................................ 5.75% $140,000,000 $140,000,000
UBS Securities, Inc.
dated 1/31/95, due 2/1/95, in the amount of $225,035,938
(fully collateralized by $195,000,000 U.S. Treasury Bills due from
7/20/95 to 7/27/95 and by $41,395,000 U.S. Treasury Notes, 4.00%
due 1/31/96, value $229,501,638)............................ 5.75 225,000,000 225,000,000
-------------
TOTAL REPURCHASE AGREEMENTS
(cost $880,583,000)......................................... $880,583,000
=============
TOTAL INVESTMENTS
(cost $1,832,808,693).............................. 103.0% $1,832,808,693
====== ==============
LIABILITIES, LESS CASH AND RECEIVABLES................. (3.0%) $ (53,976,485)
====== ==============
NET ASSETS............................................. 100.0% $1,778,832,208
====== ==============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(including repurchase agreements of $880,583,000)-Note 1(a,b)......... $1,832,808,693
Interest receivable..................................................... 2,040,874
--------------
1,834,849,567
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 313,320
Due to Distributor...................................................... 7,770
Due to Custodian........................................................ 6,433,111
Payable for investment securities purchased............................. 49,256,201
Accrued expenses and other liabilities.................................. 6,957 56,017,359
------------- --------------
NET ASSETS ................................................................ $1,778,832,208
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,778,860,350
Accumulated net realized (loss) on investments.......................... (28,142)
--------------
NET ASSETS at value......................................................... $1,778,832,208
==============
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 1,725,748,849
==============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 53,111,501
==============
NET ASSET VALUE per share:
Class A Shares
($1,725,721,195 / 1,725,748,849 shares)............................... $1.00
=====
Class B Shares
($53,111,013 / 53,111,501 shares)..................................... $1.00
=====
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF OPERATIONS SIX MONTHS ENDED JANUARY 31, 1995 (UNAUDITED)
INVESTMENT INCOME:
<S> <C> <C>
INTEREST INCOME......................................................... $46,560,468
EXPENSES:
Management fee_Note 2(a).............................................. $1,923,720
Distribution fees (Class B shares)_Note 2(b).......................... 29,004
------------
TOTAL EXPENSES.................................................... 1,952,724
-------------
INVESTMENT INCOME--NET...................................................... 44,607,744
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b)............................... (19,623)
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $44,588,121
=============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JULY 31, JANUARY 31, 1995
1994 (UNAUDITED)
------------------ ----------------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 76,379,549 $ 44,607,744
Net realized (loss) on investments................................ (8,519) (19,623)
------------------ ------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ 76,371,030 44,588,121
------------------ ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Class A shares.................................................. (76,172,112) (44,082,919)
Class B shares.................................................. (207,437) (524,825)
Net realized gain on investments:
Class A shares.................................................. (43,474) ----
Class B shares.................................................. ---- ----
------------------ ------------------
TOTAL DIVIDENDS............................................. (76,423,023) (44,607,744)
------------------ ------------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares.................................................. 19,349,325,990 7,432,624,374
Class B shares.................................................. 55,465,288 72,699,172
Dividends reinvested:
Class A shares.................................................. 12,706,563 9,278,370
Class B shares.................................................. 86,022 284,778
Cost of shares redeemed:
Class A shares.................................................. (19,786,003,593) (7,698,743,655)
Class B shares.................................................. (34,940,958) (40,482,801)
------------------ ------------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS..................................... (403,360,688) (224,339,762)
------------------ ------------------
TOTAL (DECREASE) IN NET ASSETS............................ (403,412,681) (224,359,385)
NET ASSETS:
Beginning of period............................................... 2,406,604,274 2,003,191,593
------------------ ------------------
End of period..................................................... $ 2,003,191,593 $ 1,778,832,208
================== ==================
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
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 period indicated. This
information has been derived from the Fund's financial statements.
CLASS A SHARES CLASS B SHARES
----------------------------------------------------------------- -----------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, ENDED JANUARY 31,
YEAR ENDED JULY 31, 1995 JULY 31, 1995
---------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED) 1994(1) (UNAUDITED)
-------- -------- -------- -------- -------- ------------ --------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period.......... $ .9996 $ .9999 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net .0824 .0688 .0452 .0310 .0322 .0234 .0177 .0222
Net realized gain
on investments..... .0003 .0001 -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS..... .0827 .0689 .0452 .0310 .0322 .0234 .0177 .0222
------- ------- ------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment
income--net........ (.0824) (.0688) (.0452) (.0310) (.0322) (.0234) (.0177) (.0222)
Dividends from net realized
gain on investments -- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
Total Distributions (.0824) (.0688) (.0452) (.0310) (.0322) (.0234) (.0177) (.0222)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ .9999 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- ------- ------- -------
TOTAL INVESTMENT RETURN.. 8.56% 7.10% 4.62% 3.14% 3.27% 4.70%(2) 3.22%(2) 4.44%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets......... .20% .20% .20% .20% .20% .20%(2) .45%(2) .45%(2)
Ratio of net investment income
to average net assets 8.19% 6.75% 4.45% 3.12% 3.18% 4.64%(2) 3.33%(2) 4.52%(2)
Decrease reflected in above
expense ratios due to
undertaking by the Manager .07% .06% .05% .04% .01% -- -- --
Net Assets, end of period
(000's Omitted).... $1,558,493 $2,643,267 $4,103,056 $2,406,604 $1,982,582 $1,725,721 $20,610 $53,111
</TABLE>
- ---------------------------
(1) From January 10, 1994 (commencement of initial offering) to July 31,
1994.
(2) Annualized.
See independent accountants' review report and notes to financial statements.
DREYFUS TREASURY CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the distributor of the Fund's
shares, 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. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
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. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00.
The Fund offers both Class A and Class B shares. 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, 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 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.
(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.
DREYFUS TREASURY CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At January 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
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.
Currently, due to an undertaking, the Manager, and not the Fund, is
liable for all 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) On August 5, 1994, Fund shareholders approved a revised Class B
Service Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Pursuant to
the Plan, effective August 24, 1994, the Fund reimburses the Distributor for
distributing the Fund's Class B shares. The Fund also pays The Dreyfus
Corporation and Dreyfus Service Corporation, and their affiliates
(collectively "Dreyfus") for advertising and marketing relating to the Fund's
Class B shares and for providing certain services relating to Class B sharehol
der accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts, at an aggregate annual rate of .25 of 1%
of the value of the Fund's Class B shares average daily net assets. Both the
Distributor and Dreyfus may pay one or more Service Agents a fee in respect
of the Fund's Class B shares owned by the shareholders with whom the Service
Agent has a servicing relationship or for whom the Service Agent is the
dealer or holder of record. Both the Distributor and Dreyfus determine the
amounts, if any, to be paid to the Service Agents under the Plan and the
basis on which such payments are made. The fees payable under the Plan are
payable without regard to actual expenses incurred.
During the period from August 1, 1994 through August 23, 1994, the Fund's
Service Plan ("prior Class B Service Plan") provided that the Fund pay
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 made payments to one or more Service Agents based on the value of
the Fund's Class B shares owned by clients of the Service Agent.
During the six months ended January 31, 1995, $25,962 was charged to the
Fund pursuant to the Plan and $3,042 was charged to the Fund pursuant to the
prior Class B Service Plan.
(C) Prior to August 24, 1994, certain officers and trustees of the Fund
were "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
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS TREASURY CASH MANAGEMENT
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Treasury Cash Management, including the statements of investments, as
of January 31, 1995, and the related statements of operations and changes in
net assets and financial highlights for the six month period ended January
31, 1995. These financial statements and financial highlights are the
responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modification that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepting
auditing standards, the statement of changes in net assets for the year ended
July 31, 1994 and financial highlights for each of the five years in the
period ended July 31, 1994 and in our report dated September 9, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst & Young LLP Signature Logo)
New York, New York
March 6, 1995
DREYFUS TREASURY
CASH MANAGEMENT
200 PARK AVENUE
NEW YORK, NY 10166
MANAGER
THE DREYFUS CORPORATION
200 PARK AVENUE
NEW YORK, NY 10166
CUSTODIAN
THE BANK OF NEW YORK
90 WASHINGTON STREET
NEW YORK, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
THE SHAREHOLDER SERVICES GROUP, INC.
P.O. BOX 9671
PROVIDENCE, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 521/673SA951
DREYFUS
TREASURY
CASH
MANAGEMENT
SEMI-ANNUAL REPORT
JANUARY 31, 1995
