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 annual reporting period ended July 31, 1996, your Fund
produced annualized yields of 5.36% for Class A shares and 5.11% for Class B
shares. Reinvesting dividends and calculating the effect of compounding
resulted in annualized effective yields of 5.49% and 5.23% for Class A shares
and Class B shares, respectively.*
ECONOMIC REVIEW
U.S. economic growth accelerated in the first half of 1996 after 1995's
slowdown. However, this year's faster economy is accompanied by reports of
slowing corporate profit growth. Faster growth fostered fears of higher
future inflation, even while reported inflation remained tame. The fear of
inflation, as distinguished from the reality, pushed bond yields higher and
raised expectations of a Federal Reserve Board ("Fed") tightening. Some of
these fears have receded recently on evidence indicating a softer economy in
the summer months.
This year's reacceleration in the economy was due to a sharp rebound in
domestic demand that left inventories lean. Real Gross Domestic Product grew
2.0% and 4.2% in the first and second quarters, respectively, driven largely
by consumer spending and housing investment. Industrial output growth
likewise strengthened as producers tried to replenish inventory. The faster
economy has fueled steady job creation that sustains support for consumers'
incomes and spending power. However, economic strength has not been
broadbased: exports are slow and some previously strong capital goods sectors
have weakened. Moreover, early evidence on the third quarter indicates a
slower profile for spending and production this summer. Despite faster
overall economic growth this year, the peak in profit growth for this cycle
may already have occurred last year.
Wage increases accelerated in this year's tight labor market, which added
to the case for renewed inflation. Thus, bond yields rose substantially.
Short-term market rates also surged on expectation of a Fed tightening, but
have since retreated. So far, long-term rates have risen much more than
short-term rates, forcing the yield curve to steepen. A steep yield curve is
usually supportive of sustained growth in the real economy.
The debate over whether the economy might slow down in the near term
without a Fed tightening appears to be resolved by incoming evidence of a
sluggish summer economy. Nevertheless, fundamentals remain supportive of
sustained growth. Household income growth is robust and supportive of
sustained demand growth. And inventories are lean, which can lead to
sustained production growth. Summer sluggishness, however, would keep
inflation fears at bay, deferring expectations for a Fed tightening out into
the future.
THE MONEY MARKET AND THE PORTFOLIO
A year ago, the main concern of monetary policy makers was whether the
U.S. economy would head into a recession. Unemployment figures were
stubbornly high, profits were slack, and the economic growth rate slowed
noticeably. The Fed addressed these problems with a succession of steps to
reduce short-term interest rates, the last such step being taken at the end
of January, 1996.
Since then, the central bank authorities appear to have stepped away from
such an active management role. The economy has strengthened on its own, with
the marketplace exerting more force than Government actions.
As explained in the previous section of this report, the strength shown
by the economy has brought policy expectations full circle. The market now is
apprehensive about a tightening in interest rates by the Fed and certainly
does not expect the Fed to loosen the credit reins.
As spring gave way to summer, there were a succession of economic
indicators showing a stronger tone in the economy, yet without imminent
danger of runaway price or wage inflation. Early in the spring and summer,
the money market was jolted by early signs of economic revival such as strong
employment numbers. By July, however, the market appeared to take such
indications more in stride, especially now that the latest figures point to a
more subdued rate of growth.
As the latest fiscal year ended, the money market appeared prepared for
possible tightening moves by the Fed, but not necessarily any imminent
action. If the present course of slower growth continues, it might not be
necessary for the Fed to flex its muscles until after the November elections.
We have been vigilant in keeping an eye on the changing tone of the
market.
Bearing all this in mind, we intend to maintain our policy of somewhat
longer portfolio maturities until we see clearer signs that a more defensive
policy should be instituted.
We appreciate the opportunity to manage money on your behalf and will
continue our best efforts to bring you rewarding returns.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Senior Portfolio Manager
August 13, 1996
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 JULY 31, 1996
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-52.6% PURCHASE AMOUNT VALUE
______ _________ _______________
<S> <C> <C> <C>
8/8/96.............................................................. 4.85% $200,000,000 $ 199,811,776
8/22/96............................................................. 4.81 200,000,000 199,440,000
8/29/96............................................................. 4.80 200,000,000 199,256,444
9/5/96.............................................................. 5.04 200,000,000 199,025,832
10/17/96............................................................ 5.58 100,000,000 98,871,202
12/12/96............................................................ 5.41 18,000,000 17,649,878
1/2/97.............................................................. 5.38 75,000,000 73,318,833
3/6/97.............................................................. 5.41 225,000,000 218,036,411
4/3/97.............................................................. 5.50 50,000,000 48,222,049
5/1/97.............................................................. 5.64 50,000,000 47,973,354
5/29/97............................................................. 5.63 100,000,000 95,547,709
____________
TOTAL U.S. TREASURY BILLS
(cost $1,397,153,488)...................................... $1,397,153,488
==============
U.S. TREASURY NOTES-1.9%
7.25%, 11/30/96
(cost $50,272,266)......................................... 5.39% $ 50,000,000 $ 50,272,266
==============
REPURCHASE AGREEMENTS-45.3%
Barclays De Zoete Wedd
dated 7/31/96, due 8/1/96 in the amount of
$103,480,077 (fully collateralized by
$53,000,000 U.S. Treasury Notes, 6.50%-6.875%,
due from 3/31/97 to 5/15/97, and
$51,824,000 U.S. Treasury Bills, due from
8/15/96 to 12/26/96, value $104,971,199)................... 5.59% $103,464,000 $ 103,464,000
Goldman, Sachs & Co.
dated 7/31/96, due 8/1/96 in the amount of
$250,038,403 (fully collateralized by
$255,365,000 U.S. Treasury Notes, 5.875%, due
7/31/97, value $255,166,364)............................... 5.53 250,000,000 250,000,000
Morgan Stanley & Co. Inc.
dated 7/31/96, due 8/1/96 in the amount of
$250,038,889 (fully collateralized by
$248,860,000 U.S. Treasury Notes, 6.50%-8%,
due from 1/15/97 to 4/30/97, value
$253,721,317).............................................. 5.60 250,000,000 250,000,000
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1996
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
REPURCHASE AGREEMENTS (CONTINUED) PURCHASE AMOUNT VALUE
________ ________ _________
Nomura Securities International, Inc.
dated 7/31/96, due 8/1/96 in the amount of
$175,026,979 (fully collateralized by
$182,240,000 U.S. Treasury Bills due from
12/5/96 to 1/16/97, value $178,570,345).................... 5.55% $175,000,000 $ 175,000,000
SBC Capital Markets
dated 7/31/96, due 8/1/96 in the amount of
$175,028,056 (fully collateralized by
$186,802,000 U.S. Treasury Bills due from
10/17/96 to 7/24/97, value $178,532,166)................... 5.77 175,000,000 175,000,000
UBS Securities Inc.
dated 7/31/96, due 8/1/96 in the amount of
$250,038,750 (fully collateralized by
$251,065,000 U.S. Treasury Notes, 5.875% to
6.50%, due from 4/30/97 to 7/31/97, value
$255,212,779).............................................. 5.58 250,000,000 250,000,000
______________
TOTAL REPURCHASE AGREEMENTS
(cost $1,203,464,000)...................................... $1,203,464,000
================
TOTAL INVESTMENTS
(cost $2,650,889,754).......................... 99.8% $2,650,889,754
======= ================
CASH AND RECEIVABLES (NET)......................... .2% $ 6,506,731
======= ================
NET ASSETS......................................... 100.0% $2,657,396,485
======= ================
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value
(including repurchase agreements of $1,203,464,000)-Note 1(a,b)....... $2,650,889,754
Cash.................................................................... 6,224,805
Interest receivable..................................................... 796,183
________________
2,657,910,742
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 453,896
Due to Distributor...................................................... 60,361 514,257
_____________ ____________
NET ASSETS.................................................................. $2,657,396,485
==================
REPRESENTED BY:
Paid-in capital......................................................... $2,657,732,770
Accumulated net realized (loss) on investments.......................... (336,285)
________________
NET ASSETS at value......................................................... $2,657,396,485
==================
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 2,420,150,529
==================
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 237,582,241
==================
NET ASSET VALUE per share:
Class A Shares
($2,419,830,179 / 2,420,150,529 shares)............................... $1.00
=========
Class B Shares
($237,566,306 / 237,582,241 shares)................................... $1.00
=========
STATEMENT OF OPERATIONS YEAR ENDED JULY 31, 1996
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 145,155,733
EXPENSES:
Management fee-Note 2(a).............................................. $5,232,465
Distribution fees (Class B shares)-Note 2(b).......................... 354,981
_____________
TOTAL EXPENSES.................................................... 5,587,446
____________
INVESTMENT INCOME-NET....................................................... 139,568,287
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (216,714)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 139,351,573
================
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TREASURY CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JULY 31,
___________________________________
1995 1996
_________ _________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 102,164,794 $ 139,568,287
Net realized (loss) on investments.................................. (111,052) (216,714)
______________ ______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......... 102,053,742 139,351,573
______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares.................................................... (100,104,947) (132,403,710)
Class B shares.................................................... (2,059,847) (7,164,577)
______________ ______________
TOTAL DIVIDENDS............................................... (102,164,794) (139,568,287)
______________ ______________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares................................................. 16,731,857,418 33,657,047,115
Class B shares.................................................... 197,651,509 1,917,234,205
Dividends reinvested:
Class A shares.................................................... 23,045,530 39,639,158
Class B shares.................................................... 904,432 1,777,421
Cost of shares redeemed:
Class A shares.................................................... (16,786,271,189) (33,227,757,264)
Class B shares.................................................... (180,116,281) (1,720,479,396)
______________ ______________
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS....................................... (12,928,581) 667,461,239
______________ ______________
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... (13,039,633) 667,244,525
NET ASSETS:
Beginning of year................................................... 2,003,191,593 1,990,151,960
______________ ______________
End of year......................................................... $ 1,990,151,960 $ 2,657,396,485
================= ==================
See notes to financial statement.
</TABLE>
<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 year indicated. This
information has been derived from the Fund's financial statements.
CLASS A SHARES
________________________________________________________________
YEAR ENDED JULY 31,
________________________________________________________________
PER SHARE DATA: 1992 1993 1994 1995 1996
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______
INVESTMENT OPERATIONS;
Investment income-net........................ .045 .031 .032 .052 .054
______ ______ ______ ______ ______
DISTRIBUTIONS;
Dividends from investment income-net......... (.045) (.031) (.032) (.052) (.054)
______ ______ ______ ______ ______
Net asset value, end of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======= ========
TOTAL INVESTMENT RETURN.......................... 4.62% 3.14% 3.27% 5.34% 5.51%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .20% .20% .20% .20% .20%
Ratio of net investment income to average net assets 4.45% 3.12% 3.18% 5.22% 5.35%
Decrease reflected in above expense ratios due to
undertaking by the Manager................. .05% .04% .01% - -
Net Assets, end of year (000's Omitted)...... $4,103,056 $2,406,604 $1,982,582 $1,951,105 $2,419,830
See 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 year indicated. This
information has been derived from the Fund's financial statements.
CLASS B SHARES
_______________________________________
YEAR ENDED JULY 31,
_______________________________________
PER SHARE DATA: 1994(1) 1995 1996
_______ _______ _______
<S> <C> <C> <C>
Net asset value, beginning of year.................................... $ 1.00 $ 1.00 $ 1.00
_______ _______ _______
INVESTMENT OPERATIONS;
Investment income-net................................................. .018 .050 .051
_______ _______ _______
DISTRIBUTIONS;
Dividends from investment income-net.................................. (.018) (.050) (.051)
_______ _______ _______
Net asset value, end of year.......................................... $ 1.00 $ 1.00 $ 1.00
======= ======== ========
TOTAL INVESTMENT RETURN................................................... 3.22%(2) 5.08% 5.25%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... .45%(2) .45% .45%
Ratio of net investment income to average net assets.................. 3.33%(2) 5.24% 5.05%
Net Assets, end of year (000's Omitted)...................... $20,610 $39,047 $237,566
(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:
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.
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.
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
DREYFUS TREASURY CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 $207,300
available for Federal income tax purposes to be applied against future net
securities profit, if any, realized subsequent to July 31, 1996. The
carryover does not include net realized securities losses from November 1,
1995 through July 31, 1996 which are treated, for Federal income tax
purposes, as arising in fiscal 1997. If not applied, $22,500 of the carryover
expires in fiscal 2003 and $184,800 expires in fiscal 2004.
At July 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 .20 of 1% of the value
of the Fund's average daily 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 Manager compensates Dreyfus Transfer,
Inc., a wholly-owned subsidiary, under a transfer agency agreement for
providing personnel and facilities to perform transfer agency services for
the Fund. Such compensation amounted to $5,004 for the period ended July 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 and 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
securities dealer, financial institution or other industry professional) 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
year ended July 31, 1996, $354,981 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
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, 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 July 31, 1996 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, 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
September 3, 1996
IMPORTANT TAX INFORMATION (UNAUDITED)
For State individual income tax purposes, the Fund hereby designates
27.50% of the ordinary income dividends paid during its fiscal year ended
July 31, 1996 as attributable to interest income from direct obligations of
the United States. Such dividends are currently exempt from taxation for
income tax purposes in most states, including New York, California and the
District of Columbia.
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.
P.O. BOX 9671
PROVIDENCE, RI 02940
Printed in U.S.A. 521/673AR967
DREYFUS
TREASURY
CASH
MANAGEMENT
ANNUAL REPORT
JULY 31, 1996
