DREYFUS TREASURY PRIME CASH MANAGEMENT
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that Class A shares for Dreyfus Treasury Prime
Cash Management provided an annualized yield of 5.73% for the six months
ended August 31, 1995. The annualized effective yield after taking into
account the effect of compounding was 5.88% for Class A shares.* For Class B
shares, the corresponding yields were 5.48% and 5.62%.
In managing your assets during this six-month period, we lengthened
maturities gradually. This was done in anticipation of lower interest rates,
which eventually came about over the course of the past six months as the
economy gave continued signs of slowing down.
For example, the rate on the three-month U.S.Treasury bill was 5.41% on
August 31, 1995 compared to 5.73% six months earlier on March 31, 1995.
The Federal Reserve Board, which raised interest rates seven times during
1994 and early 1995 to head off inflation, became concerned that the drop in
economic performance might turn into an actual business recession.
Accordingly, in early July the Federal Reserve reversed course and made a
modest cut in the Federal Funds rate.
As of this date, the economy appears to have cooled off as compared to
the activity that prevailed last year. Thus, the Fed's policies can be viewed
as having been successful. Inflation has been restrained to moderately low
levels, with continued moderate growth in the economy.
However, the Federal Reserve showed laudable caution in the July
reduction of short-term interest rates. The future course of interest rates
will depend on the pattern of the economy and inflation as well as the
reception accorded to budget tightening proposals in the Congress.
We are closely watching these developments so that we can make any
portfolio changes that the situation may require.
We thank you for the opportunity to help you with your investment needs.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Portfolio Manager
September 20, 1995
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, 1995 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-92.9% PURCHASE AMOUNT VALUE
------------ -------------- ---------------
<S> <C> <C> <C>
9/7/95..................................................... 5.63% $ 255,000 $ 254,764
9/14/95 ................................................... 5.77 274,070,000 273,511,073
9/21/95 ................................................... 5.83 133,638,000 133,215,250
9/28/95 ................................................... 5.57 32,393,000 32,259,622
10/5/95 ................................................... 5.99 401,427,000 399,223,768
10/12/95....... ............................................. 5.43 104,403,000 103,762,737
10/19/95....... ............................................. 5.70 410,950,000 407,890,111
10/26/95....... ............................................. 5.96 116,199,000 115,170,762
11/2/95........ ............................................. 5.54 248,584,000 246,254,014
11/9/95........ ............................................. 5.46 174,288,000 172,487,037
11/16/95....... ............................................. 5.49 432,426,000 427,481,817
11/24/95....... ............................................. 5.38 28,625,000 28,270,336
11/30/95....... ............................................. 5.34 20,818,000 20,543,723
12/14/95....... ............................................. 5.52 70,838,000 69,736,076
12/21/95....... ............................................. 5.47 21,120,000 20,772,542
12/28/95....... ............................................. 5.37 26,000,000 25,553,862
1/4/96......... ............................................. 5.48 50,000,000 49,074,653
1/11/96........ ............................................. 5.48 40,879,000 40,080,349
1/18/96........ ............................................. 5.57 11,052,000 10,820,849
1/25/96........ ............................................. 5.50 99,472,000 97,312,200
2/1/96......... ............................................. 5.55 40,987,000 40,046,720
2/8/96......... ............................................. 5.60 100,000,000 97,577,778
5/2/96......... ............................................. 6.10 75,000,000 72,079,625
7/25/96........ ............................................. 5.74 284,300,000 270,205,809
------------
TOTAL U.S. TREASURY BILLS (cost $3,153,585,477)................ $3,153,585,477
==============
U.S. TREASURY NOTES-9.3%
3.88%, 10/31/95....... ...................................... 5.53% $ 114,810,000 $114,475,977
5.13%, 11/15/95....... ...................................... 5.38 100,000,000 99,907,484
8.50%, 11/15/95....... ...................................... 5.41 50,000,000 50,285,259
9.25%, 1/15/96........ ...................................... 5.56 50,000,000 50,633,321
------------
TOTAL U.S. TREASURY NOTES (cost $315,302,041)................... $ 315,302,041
===============
TOTAL INVESTMENTS (cost $3,468,887,518)......................... 102.2% $3,468,887,518
===== ================
LIABILITIES, LESS CASH AND RECEIVABLES.......................... (2.2%) $ (75,413,735)
===== ================
NET ASSETS...................................................... 100.0% $3,393,473,783
===== ================
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, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $3,468,887,518
Interest receivable..................................................... 4,876,797
-------------
3,473,764,315
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 573,432
Due to Distributor...................................................... 43,584
Due to Custodian........................................................ 79,673,516 80,290,532
---------- ----------
NET ASSETS.................................................................. $3,393,473,783
===============
REPRESENTED BY:
Paid-in capital......................................................... $3,393,698,023
Accumulated net realized (loss) on investments.......................... (224,240)
-------------
NET ASSETS at value ........................................................ $3,393,473,783
===============
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 3,170,846,468
===============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 222,851,555
===============
NET ASSET VALUE per share:
Class A Shares
($3,170,634,103 / 3,170,846,468 shares)............................... $1.00
=====
Class B Shares
($222,839,680 / 222,851,555 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, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $103,674,344
EXPENSES:
Management fee-Note 2(a).............................................. $3,487,762
Distribution fees (Class B Shares)-Note 2(b).......................... 202,039
-----------
TOTAL EXPENSES.................................................... 3,689,801
-----------
INVESTMENT INCOME-NET....................................................... 99,984,543
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (216,960)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 99,767,583
===========
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, 1995
1995 (UNAUDITED)
----------------- -------------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 162,196,736 $ 99,984,543
Net realized (loss) on investments................................ (7,250) (216,960)
------------------- ----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ 162,189,486 99,767,583
------------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares.................................................. (159,109,873) (95,557,552)
Class B shares.................................................. (3,086,863) (4,426,991)
------------------- ----------------
TOTAL DIVIDENDS............................................. (162,196,736) (99,984,543)
------------------- ----------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares.................................................. 27,082,964,680 19,936,441,774
Class B shares.................................................. 482,039,589 608,909,872
Dividends reinvested:
Class A shares.................................................. 55,571,693 33,715,420
Class B shares.................................................. 1,175,693 1,715,736
Cost of shares redeemed:
Class A shares.................................................. (28,238,282,216) (20,141,709,986)
Class B shares.................................................. (414,608,139) (510,297,440)
--------------- ---------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS..................................... (1,031,138,700) (71,224,624)
--------------- ---------------
TOTAL (DECREASE) IN NET ASSETS............................ (1,031,145,950) (71,441,584)
NET ASSETS:
Beginning of period............................................... 4,496,061,317 3,464,915,367
--------------- ---------------
End of period..................................................... $ 3,464,915,367 $ 3,393,473,783
============= ===============
See independent accountants' review report and notes to financial statements.
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<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
FISCAL YEAR ENDED FEBRUARY, AUGUST 31, 1995 YEAR ENDED SIX MONTHS ENDED
FEBRUARY 28, AUGUST 31, 1995
----------------------------------------------- ----------------------
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED) 1994(1) 1995 (UNAUDITED)
------- ------- ------- ------- ------- ----------- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period... $ .9999 $1.0001 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- --------- ------- ------- --------
INVESTMENT OPERATIONS:
Investment income-net... .0755 .0552 .0349 .0298 .0431 .0289 .0038 .0406 .0276
Net realized gain (loss)
on investments........ .0002 -- -- -- -- (.0001) -- -- (.0001)
------- ------- ------- ------- ------- --------- ------- ------- --------
TOTAL FROM
INVESTMENT
OPERATIONS........ .0757 .0552 .0349 .0298 .0431 .0288 .0038 .0406 .0275
------- ------- ------- ------- ------- --------- ------- ------- --------
DISTRIBUTIONS:
Dividends from
investment income-net. (.0755) (.0552) (.0349) (.0298) (.0431) (.0289) (.0038) (.0406) (.0276)
Dividends from net realized
gain on investments... -- (.0001) -- -- -- -- -- -- --
------- ------- ------- ------- ------- --------- ------- ------- --------
TOTAL DISTRIBUTIONS... (.0755) (.0553) (.0349) (.0298) (.0431) (.0289) (.0038) (.0406) (.0276)
------- ------- ------- ------- ------- --------- ------- ------- --------
Net asset value, end of period $1.0001 $1.0000 $1.0000 $1.0000 $1.0000 $ .9999 $1.0000 $1.0000 $ .9999
======== ====== ======== ======== ======= ========= ======== ======= ========
TOTAL INVESTMENT RETURN..... 7.82% 5.67% 3.55% 3.02% 4.39% 5.79%(2) 2.77%(2) 4.13% 5.53%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets.... .20% .20% .20% .20% .20% .20%(2) .45%(2) .45% .45%(2)
Ratio of net investment income
to average net assets. 7.39% 5.35% 3.45% 2.99% 4.26% 5.73%(2) 2.78%(2) 4.26% 5.46%(2)
Decrease reflected in above
expense ratios due to
undertaking by
the Manager........... .05% .05% .04% .02% -- -- -- -- --
Net Assets, end of period
(000's Omitted)....... $1,915,877 $4,435,718 $5,001,499 $4,442,145 $3,342,392 $3,170,634 $ 53,916 $122,524 $222,840
(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. Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales load. The Distributor, located at One Exchange Place, Boston,
Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00.
The Fund 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, 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 $7,280 available for
Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to February 28, 1995. If not applied,
the carryover expires in fiscal 2003.
At August 31, 1995, 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.
Unless the Manager gives the Fund's investors 90 days notice to the
contrary, the Manager and not the Fund, will be liable for Fund expenses
(exclusive of taxes, brokerage, interest on borrowings and, with the prior
written consent of the necessary state securities commissions, extraordinary
expenses) other than the following expenses, which will be borne by the Fund:
the management fee, and with respect to the Fund's Class B shares, Rule 12b-1
Service Plan expenses.
(B) Under the Class B Service Plan (the "Plan") adopted pursuant to Rule
12b-1 under the Act, the Fund (a) reimburses the Distributor for distributing
the Fund's Class B shares and (b) pays the Manager and Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, and their affiliates
(collectively "Dreyfus") for advertising and marketing relating to the Fund's
Class B shares and for providing certain services relating to Class B
shareholder accounts, such as answering shareholder inquiries regarding the
Fund and providing reports and other information, and services related to the
maintenance of shareholder accounts ("Servicing"), at an aggregate annual
rate of .25 of 1% of the value of the Fund's Class B shares average daily net
assets. Both the Distributor and Dreyfus may pay one or more Service Agents a
fee in respect of the Fund's Class B shares owned by the shareholders with
whom the Service Agent has a Servicing relationship or for whom the Service
Agent is the dealer or holder of record. Both the Distributor and Dreyfus
determine the amounts, if any, to be paid to the Service Agents under the
Plan and the basis on which such payments are made. The fees payable under
the Plan are payable without regard to actual expenses incurred. During the
six months ended August 31, 1995, $202,039 was charged to the Fund pursuant
to the Plan.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives an annual fee of $3,000 and an attendance fee of $500 per meeting.
DREYFUS TREASURY 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, 1995, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended August 31, 1995. 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, 1995 and financial highlights for each of the five years in the
period ended February 28, 1995 and in our report dated April 4, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
October 3, 1995
[Dreyfus lion "d" logo]
DREYFUS TREASURY PRIME
CASH MANAGEMENT
200 PARK AVENUE
NEW YORK, NY 10166
MANAGER
THE DREYFUS CORPORATION
200 PARK AVENUE
NEW YORK, NY 10166
CUSTODIAN
THE BANK OF NEW YORK
90 WASHINGTON STREET
NEW YORK, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
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. 761/674SA958
[Dreyfus logo]
DREYFUS
TREASURY
PRIME CASH
MANAGEMENT
SEMI-ANNUAL REPORT
AUGUST 31, 1995
