LETTER TO SHAREHOLDERS
Dear Shareholder:
This report comes after a period when the Federal Reserve Board, resolved
to fight the threat of inflation, has raised interest rates in five
successive steps. In just six months, the Federal Reserve Board has moved its
target rate for Federal Funds from 3% to 4.75%, and the discount rate from 3%
to 4%. No one would be surprised if a sixth such action occurs before the end
of the year.
Accordingly, for the six-month period ended August 31, 1994, Dreyfus
Treasury Prime Cash Management, Class A shares provided an annualized yield
of 3.62%, or an annualized effective yield of 3.68% when giving effect to the
power of compounding. The Class B shares earned an annualized yield of 3.37%,
or an annualized effective yield of 3.42% after taking into account the
effect of compounding.*
Though employment is still slack, prices are beginning to feel some
upward pressures-- particularly at the wholesale and producer level.
Moreover, looking overseas, strong economic revival is getting under way in
Europe and Japan. Less developed economies in China, Southeast Asia and Latin
America are increasingly making themselves felt in world markets. All this
can add to pressure on prices of goods in world trade.
The most recent release by the Federal Reserve showed a sharp rise in the
Capacity Utilization rate to the highest level since 1989, approaching the
break-even level for inflation.
When interest rates are rising, our strategy is to shorten average
maturities. The purpose of this strategy is to enable the Fund to take
advantage of higher short-term interest rates and to protect the assets
against further rate increases.
Your investment with Dreyfus is appreciated and we look forward to
continuing to serve your investment needs.
Sincerely,
(Patricia A. Larkin Signature Logo)
Patricia A. Larkin
Portfolio Manager
September 22, 1994
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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<CAPTION>
DREYFUS TREASURY PRIME CASH MANAGEMENT
STATEMENT OF INVESTMENTS AUGUST 31, 1994 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE PRINCIPAL
U.S. TREASURY BILLS--95.0% PURCHASE AMOUNT VALUE
------------ -------------- -----------
<S> <C> <C> <C> <C>
9/1/94..................................................... 4.19% $ 5,194,000 $ 5,194,000
9/8/94..................................................... 3.96 123,274,000 123,180,216
9/15/94.................................................... 4.01 259,482,000 259,083,015
9/22/94.................................................... 4.31 610,022,000 608,499,663
9/29/94.................................................... 4.17 1,985,000 1,978,624
10/6/94.................................................... 4.35 105,527,000 105,084,270
10/13/94................................................... 4.20 413,834,000 411,834,718
10/20/94................................................... 4.33 227,090,000 225,772,211
10/27/94................................................... 4.45 257,597,000 255,842,290
11/3/94.................................................... 4.51 148,440,000 147,284,845
11/10/94................................................... 4.50 40,993,000 40,640,913
11/17/94................................................... 4.56 51,443,000 50,952,263
11/25/94................................................... 4.64 60,000,000 59,351,167
12/1/94.................................................... 4.59 42,056,000 41,577,297
12/8/94.................................................... 4.58 85,937,000 84,889,316
12/15/94................................................... 3.44 74,913,000 74,184,315
12/22/94................................................... 4.69 112,535,000 110,928,191
1/12/95.................................................... 4.87 15,527,000 15,254,810
1/26/95.................................................... 4.78 291,970,000 286,402,967
2/2/95..................................................... 4.92 175,842,000 172,228,241
2/16/95.................................................... 4.98 82,979,000 81,095,100
2/23/95.................................................... 4.99 35,000,000 34,172,274
3/2/95..................................................... 5.03 50,000,000 48,760,125
3/9/95..................................................... 5.03 60,955,000 59,388,930
5/4/95..................................................... 5.04 50,000,000 48,366,667
6/1/95..................................................... 5.10 25,000,000 24,078,624
----------------
TOTAL U.S. TREASURY BILLS
(cost $3,376,025,052)...................................... $3,376,025,052
==============
U.S. TREASURY NOTES--6.5%
4.00%, 9/30/94............................................. 4.36% $ 6,000,000 $ 5,997,636
9.50%, 10/15/94............................................ 4.39 100,000,000 100,573,288
4.25%, 10/31/94............................................ 3.96 50,000,000 50,015,932
6.00%, 11/15/94............................................ 4.53 50,000,000 50,134,920
8.25%, 11/15/94............................................ 4.69 25,000,000 25,171,711
----------------
TOTAL U.S. TREASURY NOTES
(cost $231,893,487)........................................ $ 231,893,487
==============
TOTAL INVESTMENTS
(cost $3,607,918,539)............................ 101.5% $3,607,918,539
====== ==============
LIABILITIES, LESS CASH AND RECEIVABLES............... (1.5%) $ (51,611,099)
====== ==============
NET ASSETS........................................... 100.0% $3,556,307,440
====== ==============
See independent accountants' review report and notes to financial statements.
</TABLE>
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<CAPTION>
DREYFUS TREASURY PRIME CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1994 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value-Note 1(a)........................... $3,607,918,539
Interest receivable..................................................... 5,920,367
Prepaid expenses........................................................ 641
----------------
3,613,839,547
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 591,275
Due to Custodian........................................................ 8,167,161
Payable for investment securities purchased............................. 48,760,125
Accrued expenses........................................................ 13,546 57,532,107
------------- --------------
NET ASSETS ................................................................ $3,556,307,440
===============
REPRESENTED BY:
Paid-in capital......................................................... $3,556,343,844
Accumulated net realized (loss) on investments.......................... (36,404)
----------------
NET ASSETS at value ........................................................ $3,556,307,440
===============
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 3,487,812,718
===============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 68,531,126
===============
NET ASSET VALUE per share:
Class A Shares
($3,487,777,295 / 3,487,812,718 shares)............................... $1.00
======
Class B Shares
($68,530,145 / 68,531,126 shares)..................................... $1.00
======
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TREASURY PRIME CASH MANAGEMENT
STATEMENT OF OPERATIONS SIX MONTHS ENDED AUGUST 31, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 75,451,119
EXPENSES:
Management fee-Note 2(a).............................................. $ 3,986,554
Distribution fees (Class B Shares)-Note 2(b).......................... 71,190
-------------
TOTAL EXPENSES.................................................... 4,057,744
----------------
INVESTMENT INCOME--NET...................................................... 71,393,375
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b)............................... (36,374)
----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 71,357,001
===============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TREASURY PRIME CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
FEBRUARY 28, AUGUST 31, 1994
1994 (UNAUDITED)
----------------- -------------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 144,671,095 $ 71,393,375
Net realized gain (loss) on investments........................... 8,759 (36,374)
----------------- -----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ 144,679,854 71,357,001
----------------- -----------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares.................................................. (144,415,343) (70,429,758)
Class B shares.................................................. (255,752) (963,617)
----------------- -----------------
TOTAL DIVIDENDS............................................. (144,671,095) (71,393,375)
----------------- -----------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares.................................................. 25,962,654,577 11,111,364,971
Class B shares.................................................. 164,246,168 129,539,698
Dividends reinvested:
Class A shares.................................................. 45,793,849 23,308,206
Class B shares.................................................. 88,695 221,294
Cost of shares redeemed:
Class A shares.................................................. (26,567,811,089) (12,089,005,562)
Class B shares.................................................. (110,418,619) (115,146,110)
----------------- -----------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS (505,446,419) (939,717,503)
----------------- -----------------
TOTAL (DECREASE) IN NET ASSETS............................ (505,437,660) (939,753,877)
NET ASSETS:
Beginning of period............................................... 5,001,498,977 4,496,061,317
----------------- -----------------
End of period..................................................... $ 4,496,061,317 $ 3,556,307,440
================= =================
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TREASURY PRIME CASH MANAGEMENT
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
CLASS A SHARES CLASS B SHARES
------------------------------------------------------------------- -----------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
FISCAL YEAR ENDED FEBRUARY, AUGUST 31, 1994 FEBRUARY 28, AUGUST 31, 1994
-------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED) 1994(1) (UNAUDITED)
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period... $1.0001 $ .9999 $1.0001 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net.. .0833 .0755 .0552 .0349 .0298 .0183 .0038 .0170
Net realized gain (loss)
on investments........ (.0001) .0002 -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS........ .0832 .0757 .0552 .0349 .0298 .0183 .0038 .0170
------- ------- ------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment
income--net........... (.0833) (.0755) (.0552) (.0349) (.0298) (.0183) (.0038) (.0170)
Dividends from net realized gain
on investments........ (.0001) -- (.0001) -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS... (.0834) (.0755) (.0553) (.0349) (.0298) (.0183) (.0038) (.0170)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ .9999 $1.0001 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN..... 8.67% 7.82% 5.67% 3.55% 3.02% 3.65%(2) 2.77%(2) 3.39%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets............ .20% .20% .20% .20% .20% .20%(2) .45%(2) .45%(2)
Ratio of net investment income
to average net assets. 8.20% 7.39% 5.35% 3.45% 2.99% 3.58%(2) 2.78%(2) 3.38%(2)
Decrease reflected in above
expense ratios due to
undertaking by the Manager .10% .05% .05% .04% .02% -- -- --
Net Assets, end of period
(000's Omitted)....... $409,870 $1,915,877 $4,435,718 $5,001,499 $4,442,145 $3,487,777 $53,916 $68,530
- -----------------------------
(1) From January 10, 1994 (commencement of initial offering) to February 28, 1994.
(2) Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS TREASURY PRIME CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the distributor of the Fund's
shares, which are sold to the public without a sales load. Dreyfus Service
Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. ("Premier") was
engaged as the Fund's distributor. Premier, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of Institutional
Administration Services, Inc., a provider of mutual fund administration
services, the parent company of which is Boston Institutional Group, Inc.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so.
The Fund offers both Class A and Class B shares. Class B shares are
subject to a Service Plan adopted pursuant to Rule 12b-1 under the Act. Other
differences between the two Classes include the services offered to and the
expenses borne by each Class and certain voting rights.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Trustees to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income is recognized on the accrual basis. Cost of investments represents
amortized cost.
(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, if any, it is the policy of the Fund not to
distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
At August 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).
DREYFUS TREASURY PRIME CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 commissions and extraordinary expenses, exceed the
expense limitation of any state having jurisdiction over the Fund for any
full fiscal year. The most stringent state expense limitation applicable to
the Fund presently requires reimbursement of expenses in any full fiscal year
that such expenses (excluding certain expenses as described above) exceed 2
1/2% of the first $30 million, 2% of the next $70 million and 1 1/2% of the
excess over $100 million of the average value of the Fund's net assets in
accordance with California "blue sky" regulations.
Currently, due to an undertaking, the Manager, and not the Fund, is
liable for all expenses of the Fund (excluding certain expenses as described
above) other than management fee, and with respect to the Fund's Class B
shares, Rule 12b-1 Service Plan expenses.
The Manager may modify the existing undertaking provided that the Fund's
shareholders are given 90 days' prior notice.
(B) Under a Class B Service Plan (the "Plan") adopted pursuant to Rule
12b-1 under the Act, effective August 24, 1994, the Fund reimburses Premier
for distributing the Fund's Class B shares. The Fund also pays The Dreyfus
Corporation and Dreyfus Service Corporation, and their affiliates
(collectively "Dreyfus") for advertising and marketing relating to the Fund's
Class B shares and for providing certain services relating to Class B
shareholder accounts, such as answering shareholder inquiries regarding the Fu
nd 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 Fund's Class B average daily net
assets. Both Premier and Dreyfus may pay one or more Service Agents a fee in
respect of the Fund's Class B shares owned by shareholders with whom the
Service Agent has a Servicing relationship or for whom the Service Agent is
the dealer or holder of record. Both Premier and Dreyfus determine the
amounts, if any, to be paid to 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.
Prior to August 24, 1994, the Fund's Service Plan ("Prior Class B Service
Plan") provided that the Fund pay Dreyfus Service Corporation at an annual
rate of .25 of 1% of the value of the Fund's Class B shares average daily net
assets, for costs and expenses in connection with advertising, marketing and
distributing Class B shares and for providing certain services to holders of
Class B shares. Dreyfus Service Corporation made payments to one or more
Service Agents based on the value of the Fund's Class B shares owned by
clients of the Service Agent.
DREYFUS TREASURY PRIME CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
During the six months ended August 31, 1994, $3,559 was charged to the
Fund pursuant to the Plan and $67,631 was charged to the Fund pursuant to the
Prior Class B Service Plan.
(C) Prior to August 24, 1994 certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each trustee who is not an "affiliated person"
receives an annual fee of $3,000 and an attendance fee of $500 per meeting.
DREYFUS TREASURY PRIME CASH MANAGEMENT
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS TREASURY PRIME CASH MANAGEMENT
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Treasury Prime Cash Management, including the statement of
investments, as of August 31, 1994, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended August 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
February 28, 1994 and financial highlights for each of the five years in the
period ended February 28, 1994 and in our report dated April 4, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst & Young LLP Signature Logo)
New York, New York
October 6, 1994
DREYFUS TREASURY PRIME
CASH MANAGEMENT
144 GLENN CURTISS BOULEVARD
UNIONDALE, NY 11556
MANAGER
THE DREYFUS CORPORATION
200 PARK AVENUE
NEW YORK, NY 10166
CUSTODIAN
THE BANK OF NEW YORK
90 WASHINGTON STREET
NEW YORK, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
THE SHAREHOLDER SERVICES GROUP, INC.
P.O. BOX 9671
PROVIDENCE, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 761/674SA948
DREYFUS
TREASURY
PRIME CASH
MANAGEMENT
SEMI-ANNUAL REPORT
August 31, 1994
