FIRST PRAIRIE U S TREASURY SECURITIES CASH MANAGEMENT
N-30D, 1994-07-26
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LETTER TO SHAREHOLDERS
Dear Shareholder:
    The yield for First Prairie U.S. Treasury Securities Cash Management was
3.02% for the fiscal year ended May 31, 1994. After taking into account the
effect of compounding, the effective yield was 3.06%.*
    The lower rates provided by the Federal Reserve Board over the last few
years have done their job. The U.S. economy is again on a growth path as
evidenced by the 7% gain in GDP for the fourth quarter 1993. The economy will
probably continue to grow over the next couple of years albeit at a much
slower pace than fourth quarter '93. As an example, Gross Domestic Product
for the first quarter of the year was originally reported as 3%.
Consequently, the Fed has begun the next phase of the interest rate cycle by
beginning to boost short-term interest rates. At a Federal Funds rate level
of 3%, monetary policy was in an expansionary phase. Now the economy is
growing and the Fed has publicly stated they want the Fed Funds rate at a
neutral level.
    Earlier this year, in accordance with this policy, the Fed began a series
of rate hikes, initially with quarter-point moves. Federal Reserve Board
Chairman Alan Greenspan wants the bond market to know that he has been and
will be an inflation hawk. He wants to squelch any hint of inflation before
it rears its ugly head. As of May 31, the Fed Funds rate has increased 125
basis points from 3% to 4.25%. In anticipation of this change in policy, we
began to shorten the average maturity of the Fund earlier this year. After
the May 17th Federal Open Market Committee meeting, the Fed raised the Fed
Funds rate and the Discount rate by 50 basis points each to 4.25% and 3.50%
respectively. We began to lengthen our portfolio maturity immediately after
these rate boosts because we felt the Fed would keep rates stable for 3 to 6
months to observe the effect that increasing rates would have on the economy.
    Later this year, depending upon how strong the economy is, we anticipate
the Fed will again raise rates. Consequently, we currently intend to manage
the Fund with an average maturity in the 50-to-60-day range.
    We thank you for your investment in this cash management fund and will
continue to use our best efforts to provide a high level of income, while
safeguarding the integrity of principal.

                              Sincerely,

                              (T. Scott McCartan Signature)

                              T. Scott McCartan
                              Chief Investment Officer
                              First Prairie Funds
June 24, 1994
New York, N.Y.


* Effective yield is based upon dividends declared daily and reinvested
monthly.

<TABLE>
<CAPTION>


FIRST PRAIRIE U.S. TREASURY SECURITIES CASH MANAGEMENT
STATEMENT OF INVESTMENTS                                                                         MAY 31, 1994
                                                                            ANNUALIZED
                                                                            YIELD ON
                                                                             DATE OF        PRINCIPAL
U.S. TREASURY BILLS--75.6%                                                   PURCHASE        AMOUNT        VALUE
                                                                           ------------  ------------- -------------
    <S>                                                                      <C>           <C>          <C>
    6/9/1994...................................................              3.52%         $90,000,000  $ 89,930,333
    6/23/1994..................................................              3.10           45,000,000    44,915,988
    7/7/1994...................................................              3.38           50,000,000    49,833,250
    8/25/1994..................................................              3.29             5,500,000    5,458,444
    9/1/1994...................................................              4.28           25,000,000    24,729,750
    9/22/1994..................................................              3.45             5,000,000    4,947,424
    11/17/1994.................................................              4.65           50,000,000    48,933,775
    11/25/1994.................................................              4.73           25,000,000    24,431,510
    12/15/1994.................................................              4.59           20,000,000    19,510,236
                                                                                                       -------------
TOTAL U.S. TREASURY BILLS
    (cost $312,690,710)........................................                                         $312,690,710
                                                                                                       =============
U.S. GOVERNMENT AGENCIES--20.0%
Agency for International Development, Floating Rate Notes (a)
    3/1/2008...................................................              5.08%         $12,766,942  $ 12,820,953
    1/1/2012...................................................              3.52              500,000       500,000
    1/1/2018...................................................              4.03           12,500,000    12,772,366
    7/1/2018...................................................              5.10           10,000,000    10,000,000
    12/1/2018..................................................              5.52            7,500,000     7,563,627
    1/1/2021...................................................              4.51           25,000,000    25,000,000
    7/1/2023...................................................              5.00           14,100,000    14,100,000
                                                                                                       -------------
TOTAL U.S. GOVERNMENT AGENCIES
    (cost $82,756,946).........................................                                        $  82,756,946
                                                                                                       =============
REPURCHASE AGREEMENT--5.1%
National Westminster Bank USA
    dated 5/31/1994, due 6/1/1994 in the amount of $21,002,491
    (fully collateralized by $22,430,000 U.S.
    Treasury Notes 5.375%, due 5/31/1998, value $21,458,991)
    (cost $21,000,000).........................................              4.27%         $21,000,000  $ 21,000,000
                                                                                                       =============
TOTAL INVESTMENTS
    (cost $416,447,656)..............................    100.7%                                         $416,447,656
                                                         ======                                        =============
LIABILITIES, LESS CASH AND RECEIVABLES...............      (.7%)                                        $ (2,813,685)
                                                         ======                                        =============
NET ASSETS...........................................    100.0%                                         $413,633,971
                                                         ======                                        =============
NOTE TO STATEMENT OF INVESTMENTS;
    (a)  Variable interest rate - subject to periodic change.



See notes to financial statements.

</TABLE>

<TABLE>
<CAPTION>


FIRST PRAIRIE U.S. TREASURY SECURITIES CASH MANAGEMENT
STATEMENT OF ASSETS AND LIABILITIES                                                                 MAY 31, 1994
ASSETS:
    <S>                                                                                    <C>          <C>
    Investments in securities, at value--Note 1(a,b)........................                            $416,447,656
    Interest receivable.....................................................                               1,499,083
    Prepaid expenses........................................................                                  58,191
                                                                                                      --------------
                                                                                                         418,004,930
LIABILITIES:
    Due to The First National Bank of Chicago...............................               $   200,245
    Due to Custodian........................................................                 4,053,934
    Accrued expenses........................................................                   116,780     4,370,959
                                                                                          ------------ -------------
NET ASSETS  ................................................................                            $413,633,971
                                                                                                       =============
REPRESENTED BY:
    Paid-in capital.........................................................                            $413,680,487
    Accumulated net realized (loss) on investments..........................                                 (46,516)
                                                                                                        --------------
NET ASSETS at value applicable to 413,680,487 shares outstanding
    (unlimited number of $.001 par value of Beneficial Interest authorized).                            $413,633,971
                                                                                                       =============
NET ASSET VALUE, offering and redemption price per share
    ($413,633,971 / 413,680,487 shares).....................................                                   $1.00
                                                                                                               =====
STATEMENT OF OPERATIONS                                                                   YEAR ENDED MAY 31, 1994
INVESTMENT INCOME:
    INTEREST INCOME.........................................................                           $  14,033,118
    EXPENSES:
      Management fee--Note 2(a).............................................                $1,478,021
      Registration fees.....................................................                    82,477
      Custodian fees........................................................                    81,457
      Prospectus and shareholders' reports..................................                    26,444
      Professional fees.....................................................                    41,336
      Trustees' fees and expenses_Note 2(b).................................                     6,145
      Miscellaneous.........................................................                    43,644
                                                                                          ------------
                                                                                             1,759,524
      Less_reduction in management fee due to undertakings_Note 2(a)........                   477,943
                                                                                          ------------
            TOTAL EXPENSES..................................................                               1,281,581
                                                                                                       -------------
INVESTMENT INCOME--NET......................................................                              12,751,537
NET REALIZED (LOSS) ON INVESTMENTS--NOTE 1(B)...............................                                 (42,640)
                                                                                                       -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................                            $ 12,708,897
                                                                                                       =============
See notes to financial statements.
</TABLE>

<TABLE>
<CAPTION>

FIRST PRAIRIE U.S. TREASURY SECURITIES CASH MANAGEMENT
STATEMENT OF CHANGES IN NET ASSETS

                                                                                        YEAR ENDED MAY 31,

- ------------------------------------
OPERATIONS:                                                                               1993*              1994
                                                                                    ----------------  ----------------
    <S>                                                                               <C>               <C>
    Investment income_net................................................             $    5,009,723    $   12,751,537
    Net realized (loss) on investments...................................                     (3,877)          (42,640)
                                                                                    ----------------  ----------------
      NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...............                  5,005,846        12,708,897
                                                                                    ----------------  ----------------
DIVIDENDS TO SHAREHOLDERS FROM;
    Investment income--net...............................................                 (5,009,723)      (12,751,537)
                                                                                    ----------------  ----------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
    Net proceeds from shares sold........................................              2,224,947,105     4,379,511,392
    Dividends reinvested.................................................                    101,156           563,903
    Cost of shares redeemed..............................................             (1,960,617,531)   (4,230,925,537)
                                                                                    ----------------  ----------------
      INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.......                264,430,730       149,149,758
                                                                                    ----------------  ----------------
          TOTAL INCREASE IN NET ASSETS...................................                264,426,853       149,107,118
NET ASSETS:
    Beginning of year....................................................                    100,000       264,526,853
                                                                                    ----------------  ----------------
    End of year..........................................................            $   264,526,853   $   413,633,971
                                                                                    ================  ================
* From June 2, 1992 (commencement of operations) to May 31, 1993.
</TABLE>

<TABLE>
<CAPTION>


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
information has been derived from the Fund's financial statements.

YEAR ENDED MAY 31,

- ----------------------
PER SHARE DATA:                                                                                  1993(1)       1994
                                                                                                --------     --------
    <S>                                                                                          <C>          <C>
    Net asset value, beginning of year...............................................            $1.0000      $1.0000
                                                                                                --------     --------
    INVESTMENT OPERATIONS:
    Investment income--net...........................................................              .0319        .0302
    Net realized (loss) on investments...............................................              _           (.0001)
                                                                                                --------     --------
      TOTAL FROM INVESTMENT OPERATIONS...............................................              .0319        .0301
                                                                                                --------     --------
    DISTRIBUTIONS;
    Dividends from investment income--net............................................             (.0319)      (.0302)
                                                                                                --------     --------
    Net asset value, end of year.....................................................            $1.0000      $ .9999
                                                                                                ========     ========
TOTAL INVESTMENT RETURN..............................................................               3.25%(2)     3.06%
RATIOS/SUPPLEMENTAL DATA:
    Ratio of expenses to average net assets..........................................                .02%(2)      .30%
    Ratio of net investment income to average net assets.............................               3.10%(2)     3.02%
    Decrease reflected in above expense ratios due to
      undertakings by Manager........................................................                .47%(2)      .11%
    Net Assets, end of year (000's Omitted)..........................................           $264,527     $413,634
- --------------------------
(1)    From June 2, 1992 (commencement of operations) to May 31, 1993.
(2)    Annualized.

See notes to financial statements.
</TABLE>



FIRST PRAIRIE U.S. TREASURY SECURITIES 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. The First National
Bank of Chicago ("Manager") serves as the Fund's investment adviser. The
Dreyfus Corporation ("Dreyfus") provides certain administrative services to
the Fund-see Note 2(a). Dreyfus Service Corporation ("Distributor"), a
wholly-owned subsidiary of Dreyfus, acts as the exclusive distributor of the
Fund's shares, which are sold without a sales charge.
    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.
    (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.
    The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Fund's Manager, subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Fund's custodian and, pursuant
to the terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Fund will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Fund maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
    (C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. 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, 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 taxes.
    The Fund has an unused capital loss carryover of approximately $7,000
available for Federal income tax purposes to be applied against future net
securities profits, if any realized subsequent to May 31, 1994. The carryover
does not include net realized securities losses from November 1, 1993 through
May 31, 1994 which are treated, for Federal income tax purposes, as arising
in fiscal 1995. If not applied, the carryover expires in fiscal 2002.
    At May 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).

FIRST PRAIRIE U.S. TREASURY SECURITIES 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 .35 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
further provides that if in any full fiscal year the aggregate expenses of
the Fund exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund, the Fund may deduct from the payments to be made
to the Manager, or the Manager will bear such excess to the extent required
by state law. 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.
    The Manager has engaged Dreyfus to assist it in providing certain
administrative services for the Fund pursuant to a Master Administration
Agreement between the Manager and Dreyfus. Pursuant to its agreement with
Dreyfus, the Manager has agreed to pay Dreyfus a monthly fee at the annual
rate of .05 of 1% of the value of the Fund's average daily net assets.
    However, the Manager had undertaken from June 1, 1993 to November 30,
1993 to reduce the management fee paid by and reimburse such excess expenses
of the Fund, to the extent that the Fund's aggregate expenses (excluding
certain expenses as described above) exceeded specified annual percentages of
the Fund's average daily net assets. The Manager has currently undertaken
from December 1, 1993 to assume all expenses of the Fund in excess of an
annual rate of .35 of 1% of the Fund's average daily net assets. The
reduction in management fee, pursuant to the undertakings, amounted to
$477,943 for the year ended May 31, 1994.
    The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
    (B) 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 $1,500 and an
attendance fee of $250 per meeting.
    (C) On December 5, 1993, Dreyfus entered into an Agreement and Plan of
Merger providing for the merger of Dreyfus with a subsidiary of Mellon Bank
Corporation ("Mellon").
    Following the merger, it is planned that Dreyfus 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 Dreyfus and of Mellon. The merger is
expected to occur in August 1994, but could occur later.

FIRST PRAIRIE U.S. TREASURY SECURITIES CASH MANAGEMENT
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
FIRST PRAIRIE U.S. TREASURY SECURITIES CASH MANAGEMENT
    We have audited the accompanying statement of assets and liabilities of
First Prairie U.S. Treasury Securities Cash Management, including the
statement of investments, as of May 31, 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 May 31, 1994 by correspondence with the custodian and
others. 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 First Prairie U.S. Treasury Securities Cash Management at May 31,
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
June 30, 1994

FIRST PRAIRIE
U.S. TREASURY SECURITIES
CASH MANAGEMENT
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
Investment Adviser
THE FIRST NATIONAL BANK
OF CHICAGO
Three First National Plaza
Chicago, IL 60670
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.                            371AR945

FIRST (First Prairie Logo) PRAIRIE
                           U.S. TREASURY
                           SECURITIES CASH
                           MANAGEMENT














ANNUAL REPORT
MAY 31, 1994



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