SEMI-ANNUAL REPORT
AUGUST 31, 1996
DREYFUS TREASURY PRIME CASH MANAGEMENT
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure to provide you with this semi-annual report on Dreyfus
Treasury Prime Cash Management. For the six months ended August 31, 1996,
your Fund produced annualized yields of 5.03% for Class A shares and 4.78%
for Class B shares. The annualized effective yields after compounding were
5.15% and 4.88% for Class A and Class B shares, respectively.*
ECONOMIC REVIEW
The robust pace of the U.S. economy in the first half of 1996 was broken
temporarily by July's sluggishness. Somewhat faster growth is again evident.
However, above-trend economic expansion this year has raised fears of higher
future inflation, even while reported inflation remains tame. These inflation
fears pushed bond yields higher and built expectations for a Federal Reserve
Board (the "Fed") tightening.
This year's economic strength is due to strong domestic demand that has
kept inventories lean. Real Gross Domestic Product grew 3.4% in the first
half, driven largely by consumer spending and housing investment although
homebuilding saw slower activity. Industrial output likewise surged, although
producers bent on meeting demand have been unable to also rebuild inventory.
Support for sustained consumer spending growth is coming from new jobs, wage
increases, low summer utility bills and a fall hike in the minimum wage. In
addition, new orders for exports and capital goods-both sluggish sectors this
summer-have recently reaccelerated. Corporate profits, however, are not
sharing this year's prosperity as profit growth is now decelerating.
Core consumer price inflation remains moderate although rising food and
energy prices have begun to pull the overall inflation rate higher and wage
increases have accelerated in this year's tight labor market. As a result,
reports of a faster economic pace have boosted fears of accelerated
inflation. In response, bond yields have risen substantially this year, and
short-term market rates have also surged on expectations of a Federal Reserve
tightening in coming months. So far, long-term rates have risen more than
short-term rates, forcing the yield curve to steepen. A steep yield curve is
usually supportive of sustained growth in the real economy.
THE MONEY MARKET AND THE PORTFOLIO
In the past six months, money market interest rates have edged upward,
though not on a dramatic scale. The background for this was a strengthening
economy, as described in the previous section of this letter. The main
impetus for the rise in interest rates, however, was the effort of market
participants to stay ahead of any boost in interest rates that might be
initiated by the Federal Reserve.
On several occasions during the spring and summer, strong employment
numbers and decreases in the unemployment rates spooked the fixed-income
markets. Efforts to outguess the Fed had the effect of pumping up short-term
rates. This was the case even though the Fed's Open Market Committee, after
its last cut in rates in January 1996, held seven meetings and each time
decided to take no overt action to increase rates. In effect, the market was
doing the job for them.
As summer turned into fall, the economy continued strong, but with some
soft spots that helped to keep consumer and industrial prices within bounds.
Hence, the money market reflected the underlying strength in the economy, but
did not generate interest rates that might inhibit continued growth.
You may be assured that we watch these fluctuations in the Treasury
market intently. We have kept average maturities somewhat longer than the
industry average. Thus, we have not shifted to a truly defensive posture. In
our view, this strategy has been rewarding to our investors. If there should
be an unexpected downdraft in the market, we are in position to become
defensive, should the situation require it.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the Fund
and in The Dreyfus Corporation.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Senior Portfolio Manager
September 13, 1996
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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DREYFUS TREASURY PRIME CASH MANAGEMENT
STATEMENT OF INVESTMENTS AUGUST 31, 1996 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-86.6% PURCHASE AMOUNT VALUE
______ ________ ________
<S> <C> <C> <C>
9/5/96..................................................... 5.13% $ 33,473,000 $ 33,454,162
9/12/96.................................................... 5.14 49,729,000 49,652,060
9/17/96.................................................... 5.19 348,667,000 347,965,746
9/19/96.................................................... 5.17 140,378,000 140,018,790
10/3/96.................................................... 5.21 561,636,000 559,076,823
10/10/96................................................... 5.21 280,230,000 278,667,779
10/17/96................................................... 5.21 181,535,000 180,339,171
10/24/96................................................... 5.21 102,519,000 101,742,015
10/31/96................................................... 5.19 1,011,000 1,002,390
11/7/96.................................................... 5.25 7,442,000 7,370,431
11/14/96................................................... 5.19 132,818,000 131,432,337
11/21/96................................................... 5.17 192,760,000 190,563,683
12/12/96................................................... 5.38 123,113,000 121,283,659
12/19/96................................................... 5.40 31,911,000 31,403,265
12/26/96................................................... 5.33 39,259,000 38,602,459
1/9/97..................................................... 5.20 105,000,000 103,097,702
1/23/97.................................................... 5.23 9,840,000 9,639,067
1/30/97.................................................... 5.23 19,797,000 19,373,924
2/6/97..................................................... 5.21 80,993,000 79,201,273
2/13/97.................................................... 5.21 170,545,000 166,571,968
2/20/97.................................................... 5.23 13,301,000 12,976,899
3/6/97..................................................... 5.35 215,000,000 209,356,192
7/24/97.................................................... 5.69 100,000,000 95,123,583
8/21/97.................................................... 5.59 50,000,000 47,399,083
_______
TOTAL U.S. TREASURY BILLS
(cost $2,955,314,461)...................................... $2,955,314,461
=======
U.S. TREASURY NOTES-17.2%
6.50%, 9/30/96............................................. 5.11% $ 25,000,000 $ 25,023,208
8.00%, 10/15/96............................................ 5.29 50,000,000 50,150,000
6.88%, 10/31/96............................................ 5.27 175,000,000 175,401,462
7.25%, 11/15/96............................................ 5.28 50,000,000 50,183,902
7.25%, 11/30/96............................................ 5.28 107,500,000 107,945,177
7.50%, 1/31/97............................................. 5.28 50,000,000 50,412,109
6.88%, 2/28/97............................................. 5.43 75,000,000 75,506,836
6.63%, 3/31/97............................................. 5.41 50,000,000 50,298,344
_______
TOTAL U.S. TREASURY NOTES
(cost $584,921,038)........................................ $ 584,921,038
=======
DREYFUS TREASURY PRIME CASH MANAGEMENT
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1996 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY STRIPS-.7% PURCHASE AMOUNT VALUE
______ ________ ________
5.00%, 11/15/96
(cost $24,731,801)......................................... 5.23% $ 25,000,000 $ 24,731,801
=======
TOTAL INVESTMENTS
(cost $3,564,967,300)............................ 104.5% $3,564,967,300
==== =======
LIABILITIES, LESS CASH AND RECEIVABLES............... (4.5%) $ (152,616,054)
==== =======
NET ASSETS........................................... 100.0% $3,412,351,246
==== =======
See independent accountants' review report and notes to financial statements.
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DREYFUS TREASURY PRIME CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1996 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value-Note 1(a)........................... $3,564,967,300
Receivable for investment securities sold............................... 574,394,287
Interest receivable..................................................... 20,537,336
________
4,159,898,923
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 602,364
Due to Distributor...................................................... 78,734
Due to Custodian........................................................ 172,348,216
Payable for investment securities purchased............................. 574,518,363 747,547,677
_______ ________
NET ASSETS.................................................................. $3,412,351,246
========
REPRESENTED BY:
Paid-in capital......................................................... $3,412,563,689
Accumulated net realized (loss) on investments.......................... (212,443)
________
NET ASSETS at value......................................................... $3,412,351,246
========
Shares of Beneficial Interest Outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 3,037,264,876
========
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 375,298,813
========
NET ASSET VALUE per share:
Class A Shares
($3,037,058,768 / 3,037,264,876 shares)............................... $1.00
========
Class B Shares
($375,292,478 / 375,298,813 shares)................................... $1.00
========
STATEMENT OF OPERATIONS SIX MONTHS ENDED AUGUST 31, 1996 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 86,876,671
EXPENSES:
Management fee-Note 2(a).............................................. $ 3,322,208
Distribution fees (Class B Shares)-Note 2(b).......................... 360,263
_______
TOTAL EXPENSES.................................................. 3,682,471
________
INVESTMENT INCOME-NET....................................................... 83,194,200
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (89,491)
________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 83,104,709
========
See independent accountants' review report and notes to financial statements.
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DREYFUS TREASURY PRIME CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
FEBUARY 29, AUGUST 31, 1996
1996 (UNAUDITED)
_________ _________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 190,392,412 $ 83,194,200
Net realized (loss) on investments................................ (115,672) (89,491)
_________ _________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ 190,276,740 83,104,709
_________ _________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares.................................................. (179,191,962) (76,304,005)
Class B shares.................................................. (11,200,450) (6,890,195)
_________ _________
TOTAL DIVIDENDS............................................. (190,392,412) (83,194,200)
_________ _________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares.................................................. 46,535,417,776 29,614,070,254
Class B shares.................................................. 1,619,788,707 771,801,382
Dividends reinvested:
Class A shares.................................................. 60,805,530 23,879,469
Class B shares.................................................. 4,969,553 2,726,923
Cost of shares redeemed:
Class A shares.................................................. (47,034,381,427) (29,504,925,986)
Class B shares.................................................. (1,491,660,727) (654,850,412)
_________ _________
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS.......................... (305,060,588) 252,701,630
_________ _________
TOTAL INCREASE (DECREASE) IN NET ASSETS................... (305,176,260) 252,612,139
NET ASSETS:
Beginning of period............................................... 3,464,915,367 3,159,739,107
_________ _________
End of period..................................................... $ 3,159,739,107 $ 3,412,351,246
========= =========
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
__________________________________________________
SIX MONTHS ENDED
FISCAL YEAR ENDED FEBRUARY, AUGUST 31, 1996
__________________________________________________
PER SHARE DATA: 1992 1993 1994 1995 1996 (UNAUDITED)
____ ____ ____ ____ ____ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____ ____ ____ ____ ____ ____
INVESTMENT OPERATIONS;
Investment income-net................. .055 .035 .030 .043 .055 .025
____ ____ ____ ____ ____ ____
DISTRIBUTIONS;
Dividends from investment income-net.. (.055) (.035) (.030) (.043) (.055) (.025)
____ ____ ____ ____ ____ ____
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................... 5.67% 3.55% 3.02% 4.39% 5.65% 5.08%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .20% .20% .20% .20% .20% .20%*
Ratio of net investment income to
average net assets.................. 5.35% 3.45% 2.99% 4.26% 5.53% 5.03%*
Decrease reflected in above expense ratios
due to undertaking by the Manager... .05% .04% .02% - - -
Net Assets, end of period (000's Omitted) $4,435,718 $5,001,499 $4,442,145 $3,342,392 $2,904,121 $3,037,059
* Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS TREASURY PRIME CASH MANAGEMENT
FINANCIAL HIGHLIGHTS (CONTINUED)
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 B SHARES
________________________________________________________
SIX MONTHS ENDED
FISCAL YEAR ENDED FEBRUARY, AUGUST 31, 1996
______________________________
PER SHARE DATA: 1994(1) 1995 1996 (UNAUDITED)
____ ____ ____ __________
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
____ ____ ____ ____
INVESTMENT OPERATIONS;
Investment income-net............................. .004 .041 .053 .024
____ ____ ____ ____
DISTRIBUTIONS;
Dividends from investment income-net.............. (.004) (.041) (.053) (.024)
____ ____ ____ ____
Net asset value, end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ====
TOTAL INVESTMENT RETURN............................... 2.77%(2) 4.13% 5.39% 4.82%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .45%(2) .45% .45% .45%(2)
Ratio of net investment income to average net assets 2.78%(2) 4.26% 5.21% 4.78%(2)
Decrease reflected in above expense ratios
due to undertaking by the Manager............... - - - -
Net Assets, end of period (000's Omitted)......... $53,916 $122,524 $255,618 $375,292
(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:
Dreyfus Treasury Prime Cash Management (the "Fund") is registered under
the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company. The Fund's investment objective is to provide
investors with as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold without a sales load. 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.
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 per share of $1.00.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments 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 approximately $123,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to February 29, 1996. If not
applied, $7,280 of the carryover expires in fiscal 2003 and $115,720 of the
carryover expires in fiscal 2004.
At August 31, 1996, 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 value
of the Fund's average daily 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.
The Manager compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary
of the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $14,420 during the six months ended August 31, 1996.
(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 average daily net assets of Class B.
Both the Distributor and Dreyfus may pay one or more Service Agents (a
securities dealer, financial institution or other industry professional) 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, 1996, $360,263 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, 1996, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended August 31, 1996. 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 29, 1996 and financial highlights for each of the five years in the
period ended February 29, 1996 and in our report dated March 29, 1996, 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 7, 1996
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
DREYFUS TRANSFER, INC.
P.O. BOX 9671
PROVIDENCE, RI 02940
Printed in U.S.A. 761/674SA968
DREYFUS
TREASURY
PRIME CASH
MANAGEMENT
