PRESIDENT'S LETTER
Dear Shareholder:
On February 28, 1994, Dreyfus Treasury Prime Cash Management Class A
shares completed its latest fiscal year. Most of the period was
characterized by low short-term interest rates. However, in the closing
months, signs of a coming upturn in interest rates made themselves felt.
In this environment, Class A shares provided a yield of 2.98% for the
12-month period ended February 28, 1994. After taking into account the
effect of compounding, your Class A shares provided an effective yield of
3.03%.*
A STRENGTHENING ECONOMY
Because of the downward slope of yields during most of the year, we
managed your portfolio to maintain average maturities close to the 90-
day maximum permitted by applicable law and the Fund's Prospectus. In
the last quarter of the year, however, as the U.S. economy gained strength,
we thought it would be more prudent to shorten maturities somewhat, 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.
THE FED MAKES A PREEMPTIVE STRIKE
In early February, the Federal Reserve Board made a "preemptive
strike" against inflation by raising the Federal funds rate by one-quarter
percentage point.
Of course, no one can be sure how far the Fed intends to go with this
preventive action. However, history indicates that the Central Bank rarely
stops a new policy trend after just one action. Thus, it would be logical to
expect, or at least be prepared for, further tightening of interest rates.
More than likely, the Federal Reserve will not take actions that are so
drastic as to abort the current economic recovery. However, we would
expect the Federal Reserve to continue to "lean against the wind."
Accordingly, it is logical to be geared for higher levels of short-term
interest rates.
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 rewarding
returns on your cash assets.
Sincerely,
(Joseph S. DiMartino Signature)
Joseph S. DiMartino
President
March 17, 1994
New York, N.Y.
*Effective yield is based upon dividends declared daily and reinvested
monthly.
PRESIDENT'S LETTER
Dear Shareholder:
On February 28, 1994, Dreyfus Treasury Prime Cash Management Class B
shares completed its first fiscal year.
For the period since inception on January 10, 1994 through February 28,
1994, Class B shares provided an annualized yield of 2.78%. After taking
into account the effect of compounding, your Class B shares provided an
annualized effective yield of 2.82%.*
A STRENGTHENING ECONOMY
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.
THE FED MAKES A PREEMPTIVE STRIKE
In early February, the Federal Reserve Board made a "preemptive
strike" against inflation by raising the Federal funds rate by one-quarter
percentage point.
Of course, no one can be sure how far the Fed intends to go with this
preventive action. However, history indicates that the Central Bank rarely
stops a new policy trend after just one action. Thus, it would be logical to
expect, or at least be prepared for, further tightening of interest rates.
More than likely, the Federal Reserve will not take actions that are so
drastic as to abort the current economic recovery. However, we would
expect the Federal Reserve to continue to "lean against the wind."
Accordingly, it is logical to be geared for higher levels of short-term
interest rates.
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 rewarding
returns on your cash assets.
Sincerely,
(Joseph S. DiMartino Signature)
Joseph S. DiMartino
President
March 17, 1994
New York, N.Y.
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS TREASURY PRIME CASH MANAGEMENT
STATEMENT OF INVESTMENTS FEBRUARY 28, 1994
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-85.4% PURCHASE AMOUNT VALUE
--------- ------------ --------------
<S> <C> <C> <C> <C>
3/3/94..................................................................... 3.11% $130,852,000 $ 130,829,754
3/10/94.................................................................... 3.15 159,467,000 159,343,866
3/17/94.................................................................... 3.11 107,540,000 107,393,813
3/24/94.................................................................... 3.10 24,837,000 24,788,602
4/7/94..................................................................... 3.14 159,334,000 158,828,036
4/14/94.................................................................... 3.14 102,270,000 101,884,021
4/21/94.................................................................... 3.19 140,755,000 140,129,558
4/28/94.................................................................... 3.28 230,285,000 229,082,109
5/5/94..................................................................... 3.22 401,161,000 398,851,666
5/12/94.................................................................... 3.27 409,790,000 407,149,702
5/19/94.................................................................... 3.29 206,218,000 204,744,800
5/26/94.................................................................... 3.34 267,504,000 265,399,348
6/2/94..................................................................... 3.24 272,496,000 270,250,508
6/16/94.................................................................... 3.25 125,000,000 123,811,111
6/23/94.................................................................... 3.28 366,348,000 362,597,156
6/30/94.................................................................... 3.24 7,051,000 6,975,518
7/7/94..................................................................... 3.18 12,503,000 12,363,856
7/14/94.................................................................... 3.19 127,991,000 126,482,780
7/21/94.................................................................... 3.15 162,321,000 160,336,225
7/28/94.................................................................... 3.22 176,778,000 174,461,505
8/4/94..................................................................... 3.44 36,690,000 36,152,614
8/18/94.................................................................... 3.45 50,000,000 49,198,403
8/25/94.................................................................... 3.28 118,046,000 116,179,728
12/15/94................................................................... 3.44 74,913,000 72,907,381
--------------
TOTAL U.S. TREASURY BILLS (cost $3,840,142,060)................................ $3,840,142,060
==============
U.S. TREASURY NOTES-14.2%
5.75%, 3/31/94............................................................. 3.21% $ 23,885,000 $ 23,932,698
8.50%, 3/31/94............................................................. 3.14 200,000,000 200,860,713
5.375%, 4/30/94............................................................ 3.31 190,040,000 190,656,357
7.00%, 5/15/94............................................................. 3.31 50,000,000 50,373,912
13.125%, 5/15/94........................................................... 3.36 100,000,000 101,974,218
4.25%, 7/31/94............................................................. 3.51 17,733,000 17,784,076
8.625%, 8/15/94............................................................ 3.23 50,000,000 51,213,237
--------------
TOTAL U.S. TREASURY NOTES (cost $636,795,211).................................. $ 636,795,211
==============
TOTAL INVESTMENTS (cost $4,476,937,271)................................ 99.6% $4,476,937,271
====== ==============
CASH AND RECEIVABLES (NET)............................................. .4% $ 19,124,046
====== ==============
NET ASSETS............................................................. 100.0% $4,496,061,317
====== ==============
See notes to financial statements.
DREYFUS TREASURY PRIME CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1994
ASSETS:
Investments in securities, at value-Note 1(a).............................. $4,476,937,271
Cash....................................................................... 3,715,062
Interest receivable........................................................ 16,147,941
--------------
4,496,800,274
LIABILITIES:
Due to The Dreyfus Corporation............................................. $ 722,548
Accrued expenses and other liabilities..................................... 16,409 738,957
----------- --------------
NET ASSETS $4,496,061,317
==============
REPRESENTED BY:
Paid-in capital............................................................ $4,496,061,347
Accumulated net realized (loss) on investments............................. (30)
--------------
NET ASSETS at value............................................................ $4,496,061,317
==============
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)................ 4,442,145,103
==============
Class B Shares
(unlimited number of $.001 par value shares authorized)................ 53,916,244
==============
NET ASSET VALUE per share:
Class A Shares
($4,442,145,273 / 4,442,145,103 shares)................................ $1.00
=====
Class B Shares
($53,916,044 / 53,916,244 shares)...................................... $1.00
=====
STATEMENT OF OPERATIONS YEAR ENDED FEBRUARY 28, 1994
INVESTMENT INCOME:
INTEREST INCOME............................................................ $ 154,391,031
EXPENSES:
Management fee-Note 2(a)............................................... $ 9,696,382
Shareholder servicing costs-Note 2(c).................................. 396,801
Custodian fees......................................................... 322,271
Registration fees...................................................... 59,702
Professional fees...................................................... 37,755
Distribution fees (Class B Shares)-Note 2(b)........................... 22,983
Trustees' fees and expenses-Note 2(d).................................. 9,854
Prospectus and shareholders' reports................................... 6,885
Miscellaneous.......................................................... 61,178
-----------
10,613,811
Less-reduction in management fee due to undertaking-Note 2(a).......... 893,875
-----------
TOTAL EXPENSES................................................. 9,719,936
--------------
INVESTMENT INCOME-NET.......................................................... 144,671,095
NET REALIZED GAIN ON INVESTMENTS-Note 1(b)..................................... 8,759
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 144,679,854
==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TREASURY PRIME CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED FEBRUARY 28,
----------------------------------
1993 1994
--------------- ---------------
OPERATIONS:
<S> <C> <C>
Investment income-net...................................................... $ 163,140,987 $ 144,671,095
Net realized gain (loss) on investments.................................... (8,789) 8,759
--------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 163,132,198 144,679,854
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares......................................................... (163,140,987) (144,415,343)
Class B shares......................................................... __ (255,752)
Net realized gain on investments:
Class A shares......................................................... (125,304) __
Class B shares......................................................... __ __
--------------- ---------------
TOTAL DIVIDENDS.................................................... (163,266,291) (144,671,095)
--------------- ---------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares......................................................... 24,297,991,747 25,962,654,577
Class B shares......................................................... __ 164,246,168
Dividends reinvested:
Class A shares......................................................... 49,990,604 45,793,849
Class B shares......................................................... __ 88,695
Cost of shares redeemed:
Class A shares......................................................... (23,782,067,205) (26,567,811,089)
Class B shares......................................................... __ (110,418,619)
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS 565,915,146 (505,446,419)
--------------- ---------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ 565,781,053 (505,437,660)
NET ASSETS:
Beginning of year.......................................................... 4,435,717,924 5,001,498,977
--------------- ---------------
End of year................................................................ $ 5,001,498,977 $ 4,496,061,317
=============== ===============
See notes to financial statements.
</TABLE>
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 year indicated. This infor-
mation has been derived from information provided in the Fund's financial
statements.
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
--------------------------------------------------------------- ---------------
FISCAL YEAR ENDED FEBRUARY, YEAR ENDED
--------------------------------------------------------------- FEBRUARY 28,
PER SHARE DATA: 1990 1991 1992 1993 1994 1994(1)
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year........ $1.0001 $ .9999 $1.0001 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net..................... .0833 .0755 .0552 .0349 .0298 .0038
Net realized gain (loss) on investments... (.0001) .0002 -- -- -- --
------- ------- ------- ------- ------- -------
TOTAL FROM
INVESTMENT OPERATIONS............. .0832 .0757 .0552 .0349 .0298 .0038
------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net...... (.0833) (.0755) (.0552) (.0349) (.0298) (.0038)
Dividends from net realized
gain on investments................... (.0001) --- (.0001) --- --- ---
------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS................... (.0834) (.0755) (.0553) (.0349) (.0298) (.0038)
------- ------- ------- ------- ------- -------
Net asset value, end of year.............. $ .9999 $1.0001 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 8.67% 7.82% 5.67% 3.55% 3.02% 2.77%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets... .20% .20% .20% .20% .20% .45%(2)
Ratio of net investment income
to average net assets................. 8.20% 7.39% 5.35% 3.45% 2.99% 2.78%(2)
Decrease reflected in above expense
ratios due to undertaking
by the Manager.................... .10% .05% .05% .04% .02% --
Net Assets, end of year (000's Omitted)... $409,870 $1,915,877 $4,435,718 $5,001,499 $4,442,145 $53,916
(1) From January 10, 1994 (commencement of initial offering) to February 28, 1994.
(2) Annualized.
See notes to financial statements.
</TABLE>
DREYFUS TREASURY PRIME CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS
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 Trustees approved an amendment
to the Fund's Agreement and Declaration of Trust 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 10,
1994, existing Fund shares were classified as Class A shares and an
unlimited number of Class B shares were authorized. The Fund began
offering both Class A and Class B shares on January 10, 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 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 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.
At February 28, 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 (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. However, the Manager had undertaken through January 9, 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 $893,875 for the period
from March 1, 1993 through January 9, 1994.
Effective January 10, 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 10, 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 Service 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 10, 1994 through February 28,
1994, $22,983 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 shares 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 March 1,
1993 through January 9, 1994, the Fund was charged an aggregate of
$269,488 pursuant to the Class A Shareholder Services Plan.
DREYFUS TREASURY PRIME CASH MANAGEMENT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(D) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each trustee
who is not an "affiliated person" receives an annual fee of $3,000 and an
attendance fee of $500 per meeting.
(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 TREASURY PRIME CASH MANAGEMENT
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS TREASURY PRIME CASH MANAGEMENT
We have audited the accompanying statement of assets and liabilities
of Dreyfus Treasury Prime Cash Management, including the statement of
investments, as of February 28, 1994, 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 February 28, 1994 by
correspondence with the custodians. 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 Prime Cash Management at February 28,
1994, 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 Signature Logo)
New York, New York
April 4, 1994
DREYFUS TREASURY PRIME
CASH MANAGEMENT
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. 761AR942
674AR942
DREYFUS
TREASURY
PRIME CASH
MANAGEMENT
ANNUAL REPORT
February 28, 1994
