DREYFUS TREASURY CASH MANAGEMENT
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus Treasury Cash
Management. For its semi-annual reporting period ended January 31, 1996,
Class A shares of your Fund produced an annualized yield of 5.59% and Class B
shares an annualized yield of 5.34%. Reinvesting dividends and calculating
the effect of compounding resulted in annualized effective yields of 5.73%
and 5.48% for Class A shares and Class B shares respectively.*
THE ECONOMY
On January 31, the last day of the Fund's reporting period, the Federal
Reserve Board lowered the Federal Funds rate from 5.50% to 5.25%, which
prompted banks to lower the prime rate from 8.50% to 8.25%. This was the
second move for these key rates in a two-month time span. The Federal Reserve
also reduced the discount rate from 5.25% to 5.00%. The reduction in interest
rates was a continuation of an easing in monetary policy that has prevailed
since last July.
Economic activity over the course of the period had fundamentally
declined. The period between the July and December rate cuts, however,
revealed a strengthening in some areas such as raw materials, finished goods,
employment and income which subsequently abated. Later, regional business
activity showed a moderate growth trend, particularly in the Northeast where
performance was adversely affected by weather-related circumstances. In the
retail sector, disappointing sales left businesses with excess inventories,
contributing to one of the worst holiday seasons in recent years. Other
sectors, including manufacturing and consumer confidence, turned down. The
Consumer Price Index remained well under control.
Concern arose over prolonged sluggishness that could threaten long-term
sustainable growth. Actions were taken by the Federal Reserve to accelerate
the rate of growth without sparking inflation. Should more signs of weakness
emerge to undermine economic expansion, it is likely that short-term interest
rates will continue to decline. However, in early February concerns about
inflation tempered the outlook.
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
The gradual moderation in economic expansion and reduction of
inflationary pressures were fundamental backdrops to a positive market
environment. Solid technical factors, led by a stable dollar, increased the
participation of foreign investors. Overall domestic demand also helped the
market absorb the supply of Treasury securities and contributed to positive
market psychology throughout the period.
Concerns over Washington's ability to formulate a balanced budget
amendment and to resolve debt ceiling limit issues affected the market
periodically throughout this reporting period. However, low long-term
interest rates, if they continue, would have a favorable effect on the value
of short-term government securities.
Portfolio activity for your Fund centered on extending the average
maturity and seeking to enhance yield through spread evaluations and market
timing.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Senior Portfolio Manager
February 15, 1996
New York, N.Y.
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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<CAPTION>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF INVESTMENTS JANUARY 31, 1996 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-53.3% PURCHASE AMOUNT VALUE
______ ________ _________
<S> <C> <C> <C>
2/1/96................................................... 4.95% $ 315,000,000 $315,000,000
2/8/96................................................... 5.01 150,000,000 149,854,167
4/4/96................................................... 6.27 50,000,000 49,483,313
4/11/96.................................................. 5.49 10,949,000 10,835,313
4/25/96.................................................. 5.03 300,000,000 296,521,000
5/2/96................................................... 5.90 100,000,000 98,592,028
5/30/96.................................................. 5.43 38,575,000 37,918,314
7/11/96.................................................. 5.05 100,000,000 97,795,194
7/25/96.................................................. 5.65 50,000,000 48,699,045
8/22/96.................................................. 5.87 50,000,000 48,436,618
10/17/96................................................. 5.56 150,000,000 144,314,590
11/14/96................................................. 5.42 50,000,000 47,949,146
1/9/97................................................... 5.14 25,000,000 23,836,420
________
TOTAL U.S. TREASURY BILLS
(cost $1,369,235,148).................................... $1,369,235,148
========
U.S. TREASURY NOTES-1.9%
7.38%, 5/15/96
(cost $50,263,053)....................................... 5.41% $ 50,000,000 $ 50,263,053
========
REPURCHASE AGREEMENTS-44.8%
Aubrey G. Lanston & Co., Inc.
Dated 1/31/96, due 2/1/96 in the amount of
$276,045,233 (fully collateralized by
$284,705,000 U.S. Treasury Bills due from
5/16/96 to 7/11/96, value $ 279,394,414)................. 5.90% $ 276,000,000 $276,000,000
Barclays De Zoette Wedd Securities, Inc.
Dated 1/31/96, due 2/1/96 in the amount of
$76,122,571 (fully collateralized by
$78,085,000 U.S. Treasury Bills due 4/18/96,
value $77,262,765)....................................... 5.00 76,112,000 76,112,000
Morgan Stanley & Co.
Dated 1/31/96, due 2/1/96 in the amount of
$76,012,350 (fully collateralized by
$75,935,000 U.S. Treasury Notes, 7.875% due
7/15/96, value $77,139,738).............................. 5.85 76,000,000 76,000,000
Nomura Securities International, Inc.
Dated 1/31/96, due 2/1/96 in the amount of
$180,029,500 (fully collateralized by
$179,915,000 U.S. Treasury Notes, 4.375% to
7.875% due from 4/30/96 to 11/15/96, value
$183,680,222)............................................ 5.90 180,000,000 180,000,000
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
REPURCHASE AGREEMENTS (CONTINUED) PURCHASE AMOUNT VALUE
______ ________ _________
Sanwa Securities USA Co. L.P.
Dated 1/31/96, due 2/1/96 in the amount of
$100,016,389 (fully collateralized by
$103,476,000 U.S. Treasury Bills due 7/18/96,
value $101,144,341)...................................... 5.90% $ 100,000,000 $ 100,000,000
SBC Capital Markets
Dated 1/31/96, due 2/1/96 in the amount of
$213,197,567 (fully collateralized by
$224,355,000 U.S. Treasury Bills due 9/19/96,
value $217,516,161)...................................... 5.84 213,163,000 213,163,000
UBS Securities Inc.
Dated 1/31/96, due 2/1/96 in the amount of
$230,037,535 (fully collateralized by
$37,845,000 U.S. Treasury Bills due from
7/11/96 to 1/9/97 and by $195,000,000 U.S.
Treasury Notes, 4.25% to 7.50% due from
5/15/96 to 12/31/96, value $234,839,836)................. 5.88 230,000,000 230,000,000
________
TOTAL REPURCHASE AGREEMENTS
(cost $1,151,275,000).................................... $1,151,275,000
========
TOTAL INVESTMENTS
(cost $2,570,773,201).......................... 100.0% $2,570,773,201
==== ========
CASH AND RECEIVABLES (NET)......................... 0.0% $ 93,351
==== ========
NET ASSETS......................................... 100.0% $2,570,866,552
==== ========
See independent accountants' review report and notes to financial statements.
</TABLE>
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<CAPTION>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(including repurchase agreements of $1,151,275,000)-Note 1(a,b)....... $2,570,773,201
Interest receivable..................................................... 976,323
________
2,571,749,524
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 458,208
Due to Distributor...................................................... 16,463
Due to Custodian........................................................ 376,172
Accrued expenses and other liabilities.................................. 32,129 882,972
_____ ________
NET ASSETS ................................................................ $2,570,866,552
========
REPRESENTED BY:
Paid-in capital......................................................... $2,571,077,062
Accumulated net realized (loss) on investments.......................... (210,510)
________
NET ASSETS at value......................................................... $2,570,866,552
========
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 2,490,138,184
========
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 80,938,878
========
NET ASSET VALUE per share:
Class A Shares
($2,489,933,211 / 2,490,138,184 shares)............................... $1.00
========
Class B Shares
($80,933,341 / 80,938,878 shares)..................................... $1.00
========
STATEMENT OF OPERATIONS SIX MONTHS ENDED JANUARY 31, 1996 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 69,109,918
EXPENSES:
Management fee-Note 2(a).............................................. $2,383,883
Distribution fees (Class B shares)-Note 2(b).......................... 112,271
_____
TOTAL EXPENSES.................................................... 2,496,154
________
INVESTMENT INCOME-NET....................................................... 66,613,764
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (90,939)
________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 66,522,825
========
See independent accountants' review report and notes to financial statements.
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JULY 31, JANUARY 31, 1996
1995 (UNAUDITED)
__________ __________
OPERATIONS:
Investment income-net............................................. $ 102,164,794 $ 66,613,764
Net realized (loss) on investments................................ (111,052) (90,939)
_________ __________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ 102,053,742 66,522,825
_________ __________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares.................................................. (100,104,947) (64,203,881)
Class B shares.................................................. (2,059,847) (2,409,883)
_________ __________
TOTAL DIVIDENDS............................................. (102,164,794) (66,613,764)
_________ __________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares.................................................. 16,731,857,418 15,112,647,050
Class B shares.................................................. 197,651,509 499,811,898
Dividends reinvested:
Class A shares.................................................. 23,045,530 19,689,124
Class B shares.................................................. 904,432 783,894
Cost of shares redeemed:
Class A shares.................................................. (16,786,271,189) (14,593,419,509)
Class B shares.................................................. (180,116,281) (458,706,926)
_________ __________
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS..................................... (12,928,581) 580,805,531
_________ __________
TOTAL INCREASE (DECREASE) IN NET ASSETS................... (13,039,633) 580,714,592
NET ASSETS:
Beginning of period............................................... 2,003,191,593 1,990,151,960
_________ __________
End of period..................................................... $ 1,990,151,960 $2,570,866,552
========= ==========
See independent accountants' review report and notes to financial statements.
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<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
____________________________________________________________________________
SIX MONTHS ENDED
YEAR ENDED JULY 31, JANUARY 31, 1996
_________________________________________________ ________________
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
____ ____ ____ ____ ____ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____ ____ ____ ____ ____ ____
INVESTMENT OPERATIONS;
Investment income-net.............. .069 .045 .031 .032 .052 .028
____ ____ ____ ____ ____ ____
DISTRIBUTIONS;
Dividends from investment income-net (.069) (.045) (.031) (.032) (.052) (.028)
____ ____ ____ ____ ____ ____
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................ 7.10% 4.62% 3.14% 3.27% 5.34% 5.65%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .20% .20% .20% .20% .20% .20%*
Ratio of net investment income to
average net assets............... 6.75% 4.45% 3.12% 3.18% 5.22% 5.60%*
Decrease reflected in above expense ratios
due to undertaking by the Manager .06% .05% .04% .01% - -
Net Assets, end of period
(000's Omitted).................. $2,643,267 $4,103,056 $2,406,604 $1,982,582 $1,951,105 $2,489,933
*Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TREASURY CASH MANAGEMENT
FINANCIAL HIGHLIGHTS (CONTINUED)
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 B SHARES
__________________________________________
YEAR ENDED JULY 31, SIX MONTHS ENDED
JANUARY 31, 1996
____________________ ________________
PER SHARE DATA: 1994(1) 1995 (UNAUDITED)
___ ___________
<S> <C> <C> <C>
Net asset value, beginning of period............................ $ 1.00 $ 1.00 $ 1.00
___ ___ ___
INVESTMENT OPERATIONS;
Investment income-net........................................... .018 .050 .027
___ ___ ___
DISTRIBUTIONS;
Dividends from investment income-net............................ (.018) (.050) (.027)
___ ___ ___
Net asset value, end of period.................................. $ 1.00 $ 1.00 $ 1.00
=== === ===
TOTAL INVESTMENT RETURN............................................. 3.22%(2) 5.08% 5.40%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......................... .45%(2) .45% .45%(2)
Ratio of net investment income to average net assets............ 3.33%(2) 5.24% 5.37%(2)
Decrease reflected in above expense ratios due to
undertaking by the Manager.................................... - - -
Net Assets, end of period (000's Omitted)....................... $20,610 $39,047 $80,933
(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.
</TABLE>
DREYFUS TREASURY CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Treasury Cash Management (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. 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. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold without a sales load. 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.
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.
(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, 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, 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).
The Fund has an unused capital loss carryover of approximately $22,500
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to July 31, 1995. The
carryover does not include net realized securities losses from November 1,
1994 through July 31, 1995 which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, the carryover expires in
fiscal 2003.
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.
Unless the Manager gives the Fund's investors 90 days notice to the
contrary, the Manager and not the Fund, will be liable for Fund expenses
(exclusive of taxes, brokerage, interest on borrowings and with the proper
written consent of the necessary state securities commissions, extraordinary
expenses) other than the following expenses, which will be borne by the Fund:
the management fee, and with respect to the Fund's Class B shares, Rule 12b-1
Service Plan expenses.
Effective December 1, 1995, 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 $1,126 for the period from
December 1, 1995 through January 31, 1996.
(B) Under the Class B Service Plan (the "Plan") adopted pursuant to Rule
12b-1 under the Act, the Fund (a) reimburses the Distributor for distributing
the Fund's Class B shares and (b) pays the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, 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
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 ("Servicing"), at an aggregate annual
rate of .25 of 1% of the value of the average daily net assets of Class B.
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 six months
ended January 31, 1996, $112,271 was charged to the Fund, pursuant to the
Plan.
(C) Each trustee who is not an "affiliated person" as defined in the Act
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 statement of investments, as
of January 31, 1996, and the related statements of operations and changes in
net assets and financial highlights for the six month period ended January
31, 1996. 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, 1995 and financial highlights for each of the five years in the
period ended July 31, 1995 and in our report dated August 31, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
March 7, 1996
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
DREYFUS TRANSFER, INC.
ONE AMERICAN EXPRESS PLAZA
PROVIDENCE, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 521/637SA961
DREYFUS
TREASURY
CASH
MANAGEMENT
SEMI-ANNUAL REPORT
JANUARY 31, 1996
