<PAGE>
Dreyfus
100% U.S. Treasury
Short Term Fund
Annual Report
December 31, 1997
<PAGE>
Dreyfus 100% U.S. Treasury Short Term Fund
- --------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus 100% U.S.
Treasury Short Term Fund. For its 12-month reporting period ended December 31,
1997, your Fund produced a total return of 6.12%.* Income dividends of
approximately $0.921 per share were paid, which is equivalent to a distribution
rate per share of 6.28%.**
We want to take this opportunity to inform you about a special meeting of
the Fund's shareholders to be held on April 15, 1998. At this meeting, we will
consider changes to enable the Fund to expand its range of permissible
investments and investment techniques. If shareholders approve these changes,
the Fund will be required to invest at least 65% of its net assets in U.S.
Treasury securities, instead of 100% of its assets as is currently required.
The Fund would be permitted to invest the remainder of its net assets in other
securities issued or guaranteed by the U.S. Government and its agencies or
instrumentalities, and enter into repurchase agreements. The Fund would also be
permitted to engage in options and futures transactions (primarily for hedging
purposes) and lend portfolio securities. Any dividends attributable to income or
gain derived from certain of these securities transactions might be subject to
Federal income tax and to state and local taxes in certain states. If these
changes are approved, the term "100%" will be removed from the Fund's name.
If you would like to obtain a free copy of the Fund's Proxy Statement
relating to these proposed changes, please call us at 1-800-645-6561.
Economic Review
Inflation continues to surprise on the downside. Not since the oil price
collapse in 1986 has it been so restrained. As the economy approached the end
of its seventh uninterrupted year of expansion, inflation seemed to become even
more subdued. During the last quarter of 1997, the 12-month pace of consumer
price increases fell below the 2% level. Producer prices actually fell at an
annual rate of 1.2% over the first 11 months of the year.
An ongoing fear in financial markets has been that the Federal Reserve
Board's (the "Fed") unremitting fight against inflation could lead to further
increases in interest rates. Yet the Federal Open Market Committee (the "FOMC"),
the policy-making arm of the Fed, has raised interest rates just once in over
two years, a period roughly coinciding with the latest surge of economic growth.
The last increase occurred on March 25, 1997 when the FOMC increased the Federal
Funds rate by a modest one quarter of a percentage point to 5.50%. (The Federal
Funds rate is the rate of interest that banks charge one another for overnight
loans.) Investor concern about additional monetary restraint centers on the low
unemployment rate of just 4.6%, a 24-year low. In particular, there were fears
that wages would rise at a rate that could rekindle inflation.
Not surprisingly, an almost ideal economic climate -- plentiful jobs, low
interest rates and dwindling inflation -- has put consumers in an optimistic
mood. Though holiday retail sales were below expectations, spending in the third
quarter grew at the strongest pace in five years. Since consumer spending
accounts for two thirds of all economic activity, consumer attitudes are
important indicators of future economic conditions. The Conference Board (a
business-sponsored research group) reported in December that its Index of
Consumer Confidence rose to its highest level since 1969. So far, the serious
economic developments in Asia have not had an inhibiting effect on consumer
attitudes.
<PAGE>
The Asian financial crisis, while bound to affect the import/export segment
of our economy, may also afford the Fed additional flexibility in implementing
monetary policy. While the Fed is concerned about the potential resurgence of
inflation, lower-priced Asian imports and fewer exports from the U.S. to Asia
may counteract any upward pressure on the rate of U.S. inflation. Moreover, with
our economic expansion mature by any historical precedent (it's the second
longest peacetime expansion in this century), a slackening in overseas demand
for U.S. products, combined with the lower-priced imports, may curtail economic
growth without additional monetary tightening by the Fed. In fact, you could
question whether the Fed might adopt an easier policy. Asian countries will
continue struggling to stabilize their currencies in relation to the U.S.
dollar. Perhaps the biggest uncertainty ahead is the extent to which the Asian
turmoil will affect the U.S. economy.
We are particularly vigilant for developments abroad that might have either
negative or positive consequences for the
portfolio.
Market Environment
The last time we wrote to you (June 1997) we mentioned our optimism for lower
rates in the bond market. We cited several factors then which remain in place:
the balanced budget, globally attractive rates, a strong dollar, and declining
commodity prices. Those factors have come to fruition, but to a much greater
extent than even we had anticipated.
The turmoil in Asia was the wild card that caused commodity prices to drop
precipitously, drove the dollar stronger, and caused a flight to the U.S. bond
market. We believe the peak in the crisis has passed, but the crisis is not
over. The repercussions from Asia could reverberate well into 1998, which could
manifest itself in the form of a general slowdown in world economic growth.
Corporate securities came under pressure as the Asian crisis began unfolding.
This effect was seen in the form of wider spreads versus comparable-maturity
Treasuries because investors began to rethink whether they were being
compensated enough for the increased risk of corporate securities.
Portfolio Overview
Since the beginning of the summer when we became very bullish on the rate
outlook in the U.S., we have kept the Fund's average portfolio maturity close
to its maximum of three years.
Our yield curve outlook for most of the year was focused on a flatter yield
curve. We held this view with the assumption that the Fed was not immediately
going to ease rates.
We have written to you in the past about Treasury Inflation Protected
Securities ("TIPS"). Over the year, we successfully participated in TIPS.
However, by the end of the year, we no longer held any investments in TIPS.
Given our view of the world economies, we do not currently see the
attractiveness of these securities. When the crisis in Asia settles down, we
could expect commodity prices to stop falling (eventually Asian countries will
need to resume commodity purchases) and we could see TIPS perform better on this
news. We will be watching these events unfold and will adjust the portfolio
accordingly.
<PAGE>
We want to thank you for choosing Dreyfus as your investment provider, and
for choosing the Dreyfus 100% U.S. Treasury Short Term Fund. We want to assure
you that we will continue to strive to provide you an attractive investment
vehicle.
Sincerely,
/s/ Gerald E. Thunelius
Gerald E. Thunelius
Portfolio Manager
January 20, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Distribution rate per share is based upon dividends per share paid from net
investment income during the period, divided by the net asset value per
share at the end of the period.
<PAGE>
Dreyfus 100% U.S. Treasury Short Term Fund December 31, 1997
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
100% U.S. TREASURY SHORT TERM FUND AND THE MERRILL LYNCH GOVERNMENTS,
U.S. TREASURY, SHORT-TERM (1-2.99 YEARS) INDEX
Dollars
[CHART GOES HERE]
$20,504
Dreyfus
100% U.S. Treasury
Short Term Fund
$20,212
Merrill Lynch
Governments, U.S.
Treasury, Short-Term
(1-2.99 Years) Index*
* Source: Merrill Lynch, Pierce, Fenner and Smith Inc.
Average Annual Total Returns
- --------------------------------------------------------------------------------
One Year Ended Five Years Ended Five Years Ended
December 31, 1997 December 31, 1997 December 31, 1997
----------------- ----------------- -----------------
6.12% 5.58% 7.44%
- -------------------
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus 100% U.S. Treasury
Short Term Fund on 12/31/87 to a $10,000 investment made in the Merrill Lynch
Governments, U.S. Treasury, Short-Term (1-2.99 Years) Index on that date. All
dividends and capital gain distributions are reinvested.
The Fund invests exclusively in U.S. Treasury securities. The Fund's portfolio
of U.S. Treasury securities will, under normal market conditions, have a
dollar-weighted average maturity ranging between two and three years. The
Fund's performance shown in the line graph takes into account fees and
expenses. Unlike the Fund, the Merrill Lynch Governments, U.S. Treasury,
Short-Term (1-2.99 Years) Index is an unmanaged performance benchmark for
Treasury securities with maturities of 1-2.99 years; issues in the Index must
have par amounts outstanding greater than or equal to $25 million. The
Index does not take into account charges, fees and other expenses. Further
information relating to Fund performance, including expense reimbursements,
if applicable, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
<PAGE>
Dreyfus 100% U.S. Treasury Short Term Fund
- --------------------------------------------------------------------------------
Statement of Investments December 31, 1997
Principal
Bonds and Notes--98.5% Amount Value
- ------------------------------------------------------------------------------- ----------- -----------
<S> <C> <C>
U.S. Treasury Bonds--20.6%
11 3/4%, 2/15/2001........................................................... $ 5,000,000 $ 5,864,062
13 1/8%, 5/15/2001........................................................... 5,850,000 7,178,133
11 5/8%, 11/15/2002.......................................................... 10,000,000 12,464,063
11 7/8%, 11/15/2003.......................................................... 10,000,000 13,006,250
13 3/4%, 8/15/2004........................................................... 1,200,000 1,719,563
------------
40,232,071
------------
U.S. Treasury Notes--77.9%
6 3/8%, 5/15/1999........................................................... 22,300,000 22,509,062
6 3/4%, 5/31/1999........................................................... 5,500,000 5,580,781
5 3/4%, 9/30/1999........................................................... 30,000,000 30,046,875
7 3/4%, 1/31/2000........................................................... 28,000,000 29,128,750
8 1/2%, 2/15/2000........................................................... 12,500,000 13,195,313
6 3/8%, 5/15/2000........................................................... 10,000,000 10,153,125
6 1/4%, 4/30/2001........................................................... 5,000,000 5,081,250
8%, 5/15/2001............................................................... 15,000,000 16,040,625
7 1/2%, 11/15/2001.......................................................... 5,000,000 5,305,469
6 5/8%, 3/31/2002........................................................... 5,000,000 5,161,719
5 5/8%, 12/31/2002.......................................................... 10,000,000 9,963,281
------------
152,166,250
------------
TOTAL INVESTMENTS (cost $192,774,209).......................................... 98.5% $192,398,321
====== ============
CASH AND RECEIVABLES (NET)..................................................... 1.5% $ 2,999,440
====== ============
NET ASSETS..................................................................... 100.0% $195,397,761
====== ============
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus 100% U.S. Treasury Short Term Fund
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1997
Cost Value
------------- -------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $192,774,209 $192,398,321
Cash............................................. 308,999
Interest receivable.............................. 3,083,362
Receivable for shares of Beneficial Interest subscribed 450,000
Prepaid expenses and other assets................ 15,438
------------
196,256,120
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 94,372
Payable for shares of Beneficial Interest redeemed 708,163
Accrued expenses................................. 55,824
------------
858,359
------------
NET ASSETS.................................................................. $195,397,761
============
REPRESENTED BY: Paid-in capital.................................. $212,061,551
Accumulated net realized gain (loss) on investments (16,287,902)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4......................... (375,888)
------------
NET ASSETS.................................................................. $195,397,761
============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized) 13,233,253
NET ASSET VALUE, offering and redemption price per share.................... $14.77
======
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus 100% U.S. Treasury Short Term Fund
- --------------------------------------------------------------------------------
Statement of Operations Year Ended December 31, 1997
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................. $12,666,289
EXPENSES: Management fee--Note 3(a)................... $1,086,726
Shareholder servicing costs--Note 3(b)...... 593,030
Registration fees........................... 41,339
Professional fees........................... 36,502
Trustees' fees and expenses--Note 3(c)...... 34,582
Custodian fees--Note 3(b)................... 18,829
Prospectus and shareholders' reports........ 13,051
Miscellaneous............................... 4,032
----------
Total Expenses......................... 1,828,091
Less--reduction in management fee due to
undertaking--Note 3(a).................... (560,243)
----------
Net Expenses........................... 1,267,848
-----------
INVESTMENT INCOME--NET.................................................... 11,398,441
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments..... $ (717,246)
Net unrealized appreciation (depreciation)
on investments............................ 78,906
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS.................... (638,340)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $10,760,101
===========
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Short Term Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1997 December 31, 1996
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................. $ 11,398,441 $ 11,754,849
Net realized gain (loss) on investments................................ (717,246) (2,701,782)
Net unrealized appreciation (depreciation) on investments.............. 78,906 (1,586,270)
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations..... 10,760,101 7,466,797
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................. (11,398,441) (11,820,993)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......................................... 75,922,946 97,381,967
Dividends reinvested................................................... 8,803,233 8,806,448
Cost of shares redeemed................................................ (76,516,414) (102,733,977)
------------ ------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions 8,209,765 3,454,438
------------ ------------
Total Increase (Decrease) in Net Assets.......................... 7,571,425 (899,758)
NET ASSETS:
Beginning of Period.................................................... 187,826,336 188,726,094
------------ ------------
End of Period.......................................................... $195,397,761 $187,826,336
============ ============
Shares Shares
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 5,152,734 6,545,260
Shares issued for dividends reinvested................................. 597,616 593,259
Shares redeemed........................................................ (5,194,788) (6,927,652)
------------ ------------
Net Increase (Decrease) in Shares Outstanding....................... 555,562 210,867
============ ============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Short Term Fund
- --------------------------------------------------------------------------------
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.
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------
PER SHARE DATA: 1997 1996 1995 1994 1993
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $14.82 $15.14 $14.55 $15.75 $15.91
------ ------ ------ ------ ------
Investment Operations:
Investment income--net............................ .93 .90 1.03 1.15 1.25
Net realized and unrealized gain (loss) on investments (.05) (.32) .59 (1.20) (.16)
------ ------ ------ ------ ------
Total from Investment Operations.................. .88 .58 1.62 (.05) 1.09
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net............. (.93) (.90) (1.03) (1.15) (1.25)
------ ------ ------ ------ ------
Net asset value, end of period.................... $14.77 $14.82 $15.14 $14.55 $15.75
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.............................. 6.12% 4.07% 11.38% (.33%) 7.03%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .70% .70% .65% .35% .11%
Ratio of net investment income to average net assets 6.29% 6.04% 6.90% 7.61% 7.82%
Decrease reflected in above expense ratios due to
undertakings by the Manager.................... .31% .27% .29% .59% .85%
Portfolio Turnover Rate........................... 563.77% 539.38% 480.44% 499.11% 322.62%
Net Assets, end of period (000's Omitted)......... $195,398 $187,826 $188,726 $172,556 $188,300
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus 100% U.S. Treasury Short Term Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus 100% U.S. Treasury Short Term Fund (the "Fund") is registered under
the Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company. The Fund's investment objective is to provide investors with
as high a level of current income as is consistent with the preservation of
capital. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon").
Premier Mutual Fund Services, Inc. is the distributor of the Fund's shares,
which are sold to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued at the mean
between quoted bid and asked prices.
(b) Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, including, where applicable, amortization of discount on investments,
is recognized on the accrual basis.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income--net. Such dividends are paid monthly.
Dividends from net realized capital gain, 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.
The Fund has an unused capital loss carryover of approximately $16,288,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1997. If not
applied, $10,865,000 of the carryover expires in fiscal 2002, $2,004,000 expires
in fiscal 2003, $2,702,000 expires in fiscal 2004 and $717,000 expires in fiscal
2005.
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings. During the period ended December 31, 1997, the Fund did not
borrow under the line of credit.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee
is computed at the annual rate of .60 of 1% of the value of the Fund's average
daily net assets and is payable monthly. The Manager had undertaken from January
1, 1997 through December 31, 1997 to reduce the management fee paid by the Fund,
to the extent that the Fund's aggregate expenses (exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses) exceeded an annual rate of
.70 of 1% of the value of the Fund's average daily net assets. The reduction in
management fee, pursuant to the undertaking, amounted to $560,243 during the
period ended December 31, 1997.
<PAGE>
Dreyfus 100% U.S. Treasury Short Term Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
(b) Under the Shareholder Services Plan, the Fund reimburses Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, an amount not to exceed
an annual rate of .25 of 1% of the value of the Fund's average daily net assets
for certain allocated expenses of providing personal services and/or maintaining
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. During the period ended
December 31, 1997, the Fund was charged $452,803 pursuant to the Shareholder
Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended December 31, 1997, the Fund was charged $102,013 pursuant to the transfer
agency agreement.
The Fund compensates Mellon under a custody agreement to provide custodial
services for the Fund. During the period ended December 31, 1997, the Fund was
charged $18,829 pursuant to the custody agreement.
(c) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Trustee Emeritus receives 50% of such compensation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended December 31, 1997,
amounted to $1,015,943,611 and $1,036,802,218, respectively.
At December 31, 1997, accumulated net unrealized depreciation on
investments was $375,888, consisting of $385,476 gross unrealized
appreciation and $761,364 gross unrealized depreciation.
At December 31, 1997, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
<PAGE>
Dreyfus 100% U.S. Treasury Short Term Fund
- --------------------------------------------------------------------------------
Report of Ernst & Young LLP, Independent Auditors
Shareholders and Board of Trustees
Dreyfus 100% U.S. Treasury Short Term Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus 100% U.S. Treasury Short Term Fund, including the statement of
investments, as of December 31, 1997, 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 and financial highlights. Our procedures included verification by
examination of securities held by the custodian as of December 31, 1997 and
confirmation of securities not held by the custodian by correspondence with
others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus 100% U.S. Treasury Short Term Fund at December 31, 1997, 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.
/s/ Ernst & Young LLP
New York, New York
February 4, 1998
<PAGE>
Dreyfus 100% U.S. Treasury Short Term Fund
- --------------------------------------------------------------------------------
Important Tax Information (Unaudited)
For State individual income tax purposes, the Fund hereby designates 100.00%
of the ordinary income dividends paid during its fiscal year ended December 31,
1997 as attributable to interest income from direct obligations of the United
States. Such dividends are currently exempt from taxation for individual income
tax purposes in most states, including New York, California and the District of
Columbia.
<PAGE>
Dreyfus 100% U.S. Treasury
Short Term Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 081AR9712
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS 100% U.S. TREASURY SHORT TERM FUND AND THE
MERRILL LYNCH GOVERNMENTS, U.S. TREASURY, SHORT-TERM
(1-2.99 YEARS) INDEX
EXHIBIT A:
MERRILL
LYNCH DREYFUS
GOVERNMENTS, 100% U.S.
U.S. TREASURY, TREASURY
SHORT-TERM SHORT
PERIOD (1-2.99 YEARS) TERM
INDEX* FUND
12/31/87 10,000 10,000
12/31/88 10,623 10,788
12/31/89 11,777 12,172
12/31/90 12,923 12,932
12/31/91 14,432 14,603
12/31/92 15,341 15,627
12/31/93 16,171 16,725
12/31/94 16,263 16,669
12/31/95 18,052 18,566
12/31/96 18,951 19,322
12/31/97 20,212 20,504
*Source: Merrill Lynch, Pierce, Fenner and Smith Inc.
