President's Letter
Dear Shareholder:
We are pleased to report to you on the activities of Dreyfus Cash
Management Plus, Inc. for the semi-annual reporting period ended March
31, 1994.
For this period, Class A shares produced an annualized yield of 3.16%.
This was equivalent to an annualized effective yield of 3.20%, after
taking into account the effect of compounding.*
For the period since inception on January 24, 1994 through March 31,
1994, Class B shares produced an annualized yield of 2.99%. This was
equivalent to an annualized effective yield of 3.03%, after taking into
account the effect of compounding.*
In the last calendar quarter of 1993, as the U.S. economy gained
strength, it was our judgment that it would be more prudent to shorten
your Fund's average maturities, in the event that interest rates should
begin to reflect the upturn in economic activity.
Late in 1993, the economic statistics from the Federal Government made
it clear that the recession-except for unemployment figures-was virtually
over. Such indicators as industrial purchasing orders, manufacturing
activity and gross domestic product all were pointing upwards. This
exerted some pressure on interest rates without, as yet, rekindling a
dangerous amount of inflation.
Then, in early February, the Federal Reserve Board issued its "pre-
emptive strike," raising the Federal Funds rate by one-quarter percentage
point. The Federal Reserve repeated this action on March 22, 1994.
The Federal Reserve's third increase in the Federal Funds rate, on April
18, came after the close of your Fund's semi-annual fiscal period. The
money markets appeared to react more calmly to the third step than to the
previous two.
While no one can be sure how far the Federal Reserve intends to carry
its pre-emptive action, it would be logical to expect, or at least be
prepared for, further increases in short-term interest rates.
More than likely, the Federal Reserve will not take actions that are so
drastic as to derail the current economic recovery. However, we would
expect the Federal Reserve to continue to "lean against the wind."
We are keeping these considerations in mind in our day-to-day management
of your Fund's portfolio.
We thank you for the opportunity of serving your cash management needs
and will continue to exert our best efforts to earn attractive returns on
your cash assets.
Sincerely,
Joseph S. DiMartino
President
April 25, 1994
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily
and reinvested monthly.
DREYFUS CASH MANAGEMENT PLUS, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-25.7% AMOUNT VALUE
------------- ------------
<S> <C> <C>
ABN-AMRO Bank N.V. (London)
3.45%, 7/29/94 $10,000,000 $10,001,444
Chemical Bank (London)
3.45%, 5/13/94(a) 140,000,000 140,000,000
Dai-Ichi Kangyo Bank Ltd. (Yankee)
3.46%, 10/28/94 50,000,000 49,998,579
Industrial Bank of Japan Ltd. (Yankee)
3.45%, 10/7/94-10/12/94 150,000,000 150,000,000
Mitsubishi Bank Ltd. (London)
3.45%, 6/6/94 10,000,000 10,004,261
Mitsubishi Bank Ltd. (Yankee)
3.46-3.58%, 9/23/94-10/24/94 115,000,000 115,000,000
Norinchukin Bank (Yankee)
3.44%, 9/23/94 30,000,000 30,013,257
Norinchukin Bank (London)
3.44%, 10/28/94 10,000,000 10,006,147
Sanwa Bank Ltd. (Yankee)
3.34%, 7/25/94 41,000,000 41,000,000
Sumitomo Bank Ltd. (Yankee)
3.61%, 12/14/94 10,000,000 10,000,516
SwedBank (Yankee)
3.75%, 11/3/94 10,000,000 9,998,591
-------------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $576,022,795) $576,022,795
=============
COMMERCIAL PAPER-16.3%
AB Spintab
3.44%, 6/7/94 $28,000,000 $27,825,428
Bankers Trust New York Corp.
3.52-3.59%, 10/3/94-10/7/94 100,000,000 98,200,319
General Electric Capital Corp.
3.35%, 7/1/94 50,000,000 49,586,708
General Motors Acceptance Corp.
3.58-3.71%, 5/17/94-6/22/94 75,000,000 74,564,778
Paine Webber Group Inc.
3.29%, 6/24/94 15,000,000 14,886,250
Prudential Funding Corp.
3.55%, 4/1/94 50,000,000 50,000,000
Prudential Home Mortgage Co.
3.55%, 4/1/94 50,000,000 50,000,000
-------------
TOTAL COMMERCIAL PAPER (cost $365,063,483) $365,063,483
=============
DREYFUS CASH MANAGEMENT PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994 (UNAUDITED)
PRINCIPAL
CORPORATE NOTES-22.4% AMOUNT VALUE
--------------- ------------
Abbey National Treasury Services PLC
3.55-3.65%, 5/17/94-6/30/97 (a) $120,000,000(b) $120,000,000
Bear Stearns Companies Inc.
3.59%, 9/20/94 (a) 83,000,000 83,000,000
Lehman Brothers Holdings Inc.
3.83-3.90%, 5/19/94-1/13/95 (a) 145,000,000 145,000,000
Merrill Lynch & Co. Inc.
3.75%, 9/20/94-10/4/94 (a) 100,000,000 99,956,390
Westdeutsche Landesbank Girozentrale
3.80%, 1/11/95 55,000,000 54,953,619
-------------
TOTAL CORPORATE NOTES (cost $502,910,009) $502,910,009
=============
SHORT-TERM BANK NOTES-7.3%
Comercia Bank
3.39-3.44%, 9/30/94-10/18/94 $113,000,000 $112,944,797
First National Bank of Chicago
3.68%, 10/31/94 (a) 50,000,000 50,000,000
-------------
TOTAL SHORT-TERM BANK NOTES (cost $162,944,797) $162,944,797
=============
U.S. GOVERNMENT AGENCIES-19.5%
Federal Home Loan Banks
3.80-3.83%, 1/31/97-2/3/97 (a) $150,000,000 $149,973,026
Federal National Mortgage Association
3.50-3.60%, 9/6/94-11/22/94 89,000,000 87,848,467
Federal National Mortgage Association
3.45-3.64%, 10/4/96-2/14/97 200,000,000 200,000,000
-------------
TOTAL U.S. GOVERNMENT AGENCIES (cost $437,821,493) $437,821,493
=============
TIME DEPOSITS-7.9%
Banque Paribas (Cayman)
3.81%, 4/1/94 $100,000,000 $100,000,000
Kredietbank N.V. (Cayman)
4.00%, 4/1/94 75,000,000 75,000,000
Republic National Bank of New York (London)
3.50%, 4/1/94 3,500,000 3,500,000
-------------
TOTAL TIME DEPOSITS (cost $178,500,000) $178,500,000
=============
DREYFUS CASH MANAGEMENT PLUS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994 (UNAUDITED)
PRINCIPAL
REPURCHASE AGREEMENT-.6% AMOUNT VALUE
--------------- ------------
Yamaichi International America Inc.
3.59%, dated 3/31/94, due 4/4/94
in the amount of $13,005,186
(fully collateralized by $13,220,000
U.S. Treasury Bills due 6/2/94,
value $13,140,680) (cost $13,000,000) $13,000,000 $13,000,000
=============
TOTAL INVESTMENTS (cost $2,236,262,577) 99.7% $2,236,262,577
====== =============
CASH AND RECEIVABLES (NET) .3% $7,036,651
====== =============
NET ASSETS 100.0% $2,243,299,228
====== =============
Notes to Statement of Investments:
(a) Variable interest rate - subject to periodic change.
(b) Securities exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
1994, this security amounted to $120,000,000 or 5.3% of net assets.
See independent accountants' review report and notes to financial
statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CASH MANAGEMENT PLUS, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a,b) $2,236,262,577
Interest receivable 11,993,656
--------------
2,248,256,233
LIABILITIES:
Due to The Dreyfus Corporation $393,170
Accrued expenses and other liabilities 4,563,835 4,957,005
--------------- --------------
NET ASSETS $2,243,299,228
============
REPRESENTED BY:
Paid-in capital $2,243,612,121
Accumulated net realized (loss) on investments (312,893)
--------------
NET ASSETS at value $2,243,299,228
============
Shares of Common Stock outstanding:
Class A Shares (15 billion shares
of $.001 par value shares authorized) 2,243,330,968
============
Class B Shares (15 billion shares
of $.001 par value shares authorized) 281,153
============
NET ASSET VALUE per share:
Class A Shares
($2,243,018,0902,243,330,968 shares) $1.00
=====
Class B Shares ($281,138281,153 shares) $1.00
=====
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME $53,139,269
EXPENSES:
Management fee-Note 2(a) $3,178,961
Shareholder servicing costs-Note 2(c) 214,322
Custodian fees 120,004
Registration fees 16,767
Professional fees 16,218
Directors' fees and expenses-Note 2(d) 4,233
Prospectus and shareholders' reports 3,506
Distribution fees (Class B shares)-
Note 2(b) 121
Miscellaneous 14,603
--------------
3,568,735
Less-reduction in management fee due
to undertaking-Note 2(a) 389,653
--------------
TOTAL EXPENSES 3,179,082
------------
INVESTMENT INCOME-NET 49,960,187
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b) (284,660)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $49,675,527
============
See independent accountants' review report and notes to financial
statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CASH MANAGEMENT PLUS, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1994
1993 (UNAUDITED)
--------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net $114,410,274 $49,960,187
Net realized gain (loss) on investments 51,835 (284,660)
--------------- --------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 114,462,109 49,675,527
--------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares (114,410,274) (49,958,728)
Class B shares -- (1,459)
--------------- --------------
TOTAL DIVIDENDS (114,410,274) (49,960,187)
--------------- --------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares 53,505,416,859 23,933,092,562
Class B shares -- 1,578,224
Dividends reinvested:
Class A shares 17,286,764 8,813,444
Class B shares -- 1,385
Cost of shares redeemed:
Class A shares (52,819,793,558)(24,701,947,444)
Class B shares -- (1,298,456)
--------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 702,910,065 (759,760,285)
--------------- --------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 702,961,900 (760,044,945)
NET ASSETS:
Beginning of period 2,300,382,273 3,003,344,173
--------------- --------------
End of period $3,003,344,173 $2,243,299,228
=============== ==============
See independent accountants' review report and notes to financial
statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CASH MANAGEMENT PLUS, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from information provided in the Fund's
financial statements.
Class B
Class A Shares Shares
--------------------------------------------------------------------- -----------
Six Months Period
Year Ended September 30, Ended Ended
------------------------------------------------------- Mar. 31,1994 Mar. 31,1994
PER SHARE DATA: 1989 1990 1991 1992 1993 (Unaudited) (Unaudited)(1)
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $.9994 $.9999 $.9999 $.9999 $1.0000 $1.0000 $1.0000
-------- -------- -------- -------- -------- -------- --------
Investment Operations:
Investment income-net .0910 .0832 .0675 .0431 .0316 .0157 .0055
Net realized gain (loss)
on investments .0005 - - .0001 - (.0001) (.0001)
-------- -------- -------- -------- -------- -------- --------
Total from Investment
Operations 0915 .0832 .0675 .0432 .0316 .0156 .0054
-------- -------- -------- -------- -------- -------- --------
Distributions;
Dividends from investment
income-net (.0910) (.0832) (.0675) (.0431) (.0316) (.0157) (.0055)
-------- -------- -------- -------- -------- -------- --------
Net asset value,
end of period $.9999 $.9999 $.9999 $1.0000 $1.0000 $.9999 $.9999
======== ======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN 9.49% 8.65% 6.97% 4.39% 3.20% 3.17%(2) 3.00%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets .20% .20% .20% .20% .20% .20%(2) .45%(2)
Ratio of net investment
income to average net assets. 9.35% 8.29% 6.62% 4.36% 3.15% 3.14%(2) 3.01%(2)
Decrease reflected
in above expense ratios
due to undertaking
by the Manager .07% .04% .04% .05% .04% .02%(2) -
Net Assets, end of period
(000's Omitted) $728,832 $1,177,475 $1,780,058 $2,300,382 $3,003,344 $2,243,018 $281
- -----
(1) From January 10, 1994 (commencement of initial offering) to March 31, 1994.
(2) Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS CASH MANAGEMENT PLUS, INC.
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 ("Distributor") acts as the distributor of the Fund's shares,
which are sold to the public without a sales load. The Distributor is a
wholly-owned subsidiary of The Dreyfus Corporation ("Manager").
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio
valuation and dividend and distribution policies to enable it to do so.
On July 14, 1993, the Fund's Board of Directors approved an amendment to
the Fund's Agreement and Declaration of Incorporation to provide for the
issuance of additional classes of shares of the Fund. The amendment was
approved by Fund shareholders on January 6, 1994. Effective January 24,
1994, existing Fund shares were classified as Class A shares and 15
billion shares of $.001 par value of Class B shares were authorized. The
Fund began offering both Class A and Class B shares on January 24, 1994.
Class B shares are subject to a Service Plan adopted pursuant to Rule 12b-
1 under the Act. Other differences between the two Classes include the
services offered to and the expenses borne by each Class and certain
voting rights.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Directors 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 Fund's Manager, subject to
the seller's agreement to repurchase and the Fund's agreement to resell
such securities at a mutually agreed upon price. Securities purchased
subject to repurchase agreements are deposited with the Fund's custodians
and, pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. If the value of the underlying securities
falls below the value of the repurchase price plus accrued interest, the
Fund will require the seller to deposit additional collateral by the next
business day. If the request for additional collateral is not met, or the
seller defaults on its repurchase obligation, the Fund maintains the
right to sell the underlying securities at market value and may claim any
resulting loss against the seller.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends from investment income-net on each business day. Such dividends
are paid monthly. Dividends from net realized capital gain are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the
Internal Revenue Code. To the extent that net realized capital gain can
be offset by capital loss carryovers, 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 provisions
available to certain investment companies, as defined in applicable
sections of the Internal Revenue Code, and to make distributions of
taxable income sufficient to relieve it from all, or substantially all,
Federal income taxes.
DREYFUS CASH MANAGEMENT PLUS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Fund has an unused capital loss carryover of approximately $28,000
available for Federal income tax purposes to be applied against future
net securities profits, if any, realized subsequent to September 30,
1993. If not applied, $22,000 of the carryover expires in fiscal 1997,
$4,000 expires in fiscal 1999 and $2,000 expires in fiscal 2000.
At March 31, 1994, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .20 of 1% of the
average daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, interest on
borrowings, brokerage and extraordinary expenses, exceed 1 1/2% of the
average value of the Fund's net assets for any full fiscal year. However,
the Manager had undertaken from October 1,1993 through January 23, 1994
to reduce the management fee paid by, or bear such excess expenses of the
Fund, to the extent that the Fund's aggregate expenses (excluding certain
expenses as described above) exceed an annual rate of .20 of 1% of the
average daily value of the Fund's net assets. The reduction in management
fee, pursuant to the undertaking, amounted to $389,653 for the period
from October 1, 1993 through January 23, 1994.
Effective January 24, 1994, the Manager, and not the Fund, is liable for
those expenses of the Fund (excluding certain expenses as described
above) other than management fee, and with respect to the Fund's Class B
shares, Rule 12b-1 Service Plan expenses.
The Manager may modify the existing undertaking provided that the Fund's
shareholders are given 90 days prior notice.
(B) Under the Service Plan ("Class B Service Plan") adopted pursuant to
Rule 12b-1 under the Act, effective January 24, 1994, the Fund pays the
Distributor, 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. The
Distributor will make payments to one or more Services Agents (financial
institutions, securities dealers, or other industry professionals) based
on the value of the Fund's Class B shares owned by clients of the Service
Agent. From January 24, 1994 through March 31, 1994, $121 was charged to
the Fund pursuant to the Class B Service Plan.
(C) Pursuant to the Fund's Shareholder Services Plan ("Class A
Shareholder Service Plan") the Fund reimburses the Distributor an amount
not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets of Class A for servicing shareholder accounts.
The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding
the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. During the period
from October 1, 1993 through January 23, 1994, the Fund was charged an
aggregate of $214,322 pursuant to the Class A Shareholder Services Plan.
(D) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each
director who is not an "affiliated person" receives an annual fee of
$3,000 and an attendance fee of $500 per meeting.
DREYFUS CASH MANAGEMENT PLUS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(E) On December 5, 1993, the Manager entered into an Agreement and Plan
of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory
approvals and approvals of the stockholders of the Manager and of Mellon.
The merger is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
DREYFUS CASH MANAGEMENT PLUS, INC.
REVIEW REPORT OF ERNST & YOUNG, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS CASH MANAGEMENT PLUS, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Cash Management Plus, Inc., including the statement of
investments, as of March 31, 1994, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended March 31, 1994. 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 modifications 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 accepted
auditing standards, the statement of changes in net assets for the year
ended September 30, 1993 and financial highlights for each of the five
years in the period ended September 30, 1993 and in our report dated
November 2, 1993, we expressed an unqualified opinion on such statement
of changes in net assets and financial highlights.
New York, New York
May 6, 1994
DREYFUS CASH MANAGEMENT
PLUS, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank Of New York
110 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. 719/671SA943
DREYFUS
CASH
MANAGEMENT PLUS, INC.
SEMI-ANNUAL REPORT
March 31, 1994
