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Dreyfus
Institutional
Short Term
Treasury Fund
Semi-Annual
Report
March 31, 1994
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DREYFUS INSTITUTIONAL SHORT TERM TREASURY FUND
STATEMENT OF INVESTMENTS MARCH 31, 1994 (UNAUDITED)
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<CAPTION>
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BONDS AND NOTES--37.6% AMOUNT VALUE
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<S> <C> <C>
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U.S. TREASURY BONDS--3.0%
11 1/2%, 11/15/1995.................................................................. $ 2,000,000 $ 2,198,750
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U.S. TREASURY NOTES--34.6%
7 3/4%, 2/15/1995.................................................................... 12,000,000 12,328,128
8 3/8%, 4/15/1995.................................................................... 8,000,000 8,297,504
10 1/2%, 8/15/1995................................................................... 2,000,000 2,148,438
8 5/8%, 10/15/1995................................................................... 2,000,000 2,105,312
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TOTAL U.S. TREASURY NOTES.............................................................. 24,879,382
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TOTAL BONDS AND NOTES
(cost $27,487,031)................................................................... $27,078,132
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SHORT-TERM INVESTMENTS--61.3%
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REPURCHASE AGREEMENTS--19.7%
Aubrey G. Lanston & Co., 3.55%
dated 3/31/1994, due 4/4/1994 in the amount
of $10,003,944 (fully collateralized by $9,900,000 U.S.
Treasury Notes, 8%, 7/15/1994, value $10,181,160).................................... $10,000,000 $10,000,000
Kidder Peabody & Co., 3.50%
dated 3/31/1994, due 4/4/1994 in the amount
of $4,201,633 (fully collateralized by $4,320,000 U.S
Treasury Bills due 9/1/1994, value $4,250,880)....................................... 4,200,000 4,200,000
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TOTAL REPURCHASE AGREEMENTS............................................................ 14,200,000
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U.S. TREASURY BILLS--41.6%
3.15%, 4/21/1994................................................................... 30,000,000 29,940,150
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TOTAL SHORT-TERM INVESTMENTS
(cost $44,143,667)................................................................... $44,140,150
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TOTAL INVESTMENTS
(cost $71,630,698)................................................................... 98.9% $71,218,282
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CASH AND RECEIVABLES (NET)............................................................. 1.1% $ 751,968
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NET ASSETS............................................................................. 100.0% $71,970,250
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</TABLE>
See notes to financial statements.
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DREYFUS INSTITUTIONAL SHORT TERM TREASURY FUND
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STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1994 (UNAUDITED)
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ASSETS:
Investments in securities, at value
(cost $71,630,698)--see statement....................................................... $71,218,282
Cash...................................................................................... 220,774
Interest receivable....................................................................... 619,059
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72,058,115
LIABILITIES:
Due to The Dreyfus Corporation............................................................ $ 20,431
Payable for shares of Beneficial Interest redeemed........................................ 67,434 87,865
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NET ASSETS.................................................................................. $71,970,250
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REPRESENTED BY:
Paid-in capital........................................................................... $72,584,136
Accumulated net realized (loss) on investments............................................ (201,470)
Accumulated gross unrealized (depreciation) on investments................................ (412,416)
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NET ASSETS at value......................................................................... $71,970,250
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Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)................................. 21,352,037
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Class B Shares
(unlimited number of $.001 par value shares authorized)................................. 15,043,586
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NET ASSET VALUE per share:
Class A Shares
($42,139,380 / 21,352,037 shares)....................................................... $1.97
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Class B Shares
($29,830,870 / 15,043,586 shares)....................................................... $1.98
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STATEMENT OF OPERATIONS
FROM OCTOBER 29, 1993 (COMMENCEMENT OF OPERATIONS) TO MARCH 31, 1994
(UNAUDITED)
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INVESTMENT INCOME:
INTEREST INCOME........................................................................... $ 833,872
EXPENSES:
Management fee--Note 2(a)............................................................... $ 31,886
Distribution fees (Class B shares)--Note 2(b)........................................... 15,391
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TOTAL EXPENSES...................................................................... 47,277
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INVESTMENT INCOME--NET.............................................................. 786,595
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments--Note 3................................................ $(201,470)
Net unrealized (depreciation) on investments.............................................. (412,416)
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NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................................... (613,886)
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................................ $ 172,709
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</TABLE>
See notes to financial statements.
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DREYFUS INSTITUTIONAL SHORT TERM TREASURY FUND
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STATEMENT OF CHANGES IN NET ASSETS
FROM OCTOBER 29, 1993 (COMMENCEMENT OF OPERATIONS) TO MARCH 31, 1994 (UNAUDITED)
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OPERATIONS:
Investment income--net............................................................................ $ 786,595
Net realized (loss) on investments................................................................ (201,470)
Net unrealized (depreciation) on investments for the period....................................... (412,416)
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................................... 172,709
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DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares.................................................................................. (490,841)
Class B shares.................................................................................. (295,754)
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TOTAL DIVIDENDS............................................................................... (786,595)
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BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.................................................................................. 93,399,857
Class B shares.................................................................................. 41,140,029
Dividends reinvested:
Class A shares.................................................................................. 214,195
Class B shares.................................................................................. 282,246
Cost of shares redeemed:
Class A shares.................................................................................. (51,195,584)
Class B shares.................................................................................. (11,356,607)
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INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.................................. 72,484,136
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TOTAL INCREASE IN NET ASSETS................................................................ 71,870,250
NET ASSETS:
Beginning of period--Note 1....................................................................... 100,000
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End of period..................................................................................... $ 71,970,250
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</TABLE>
<TABLE>
<CAPTION>
SHARES
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PERIOD ENDED MARCH 31, 1994
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CLASS A CLASS B
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CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................................ 46,990,159 20,608,179
Shares issued for dividends reinvested................................................. 108,216 142,005
Shares redeemed........................................................................ (25,771,338) (5,731,598)
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NET INCREASE IN SHARES OUTSTANDING................................................. 21,327,037 15,018,586
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</TABLE>
See notes to financial statements.
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DREYFUS INSTITUTIONAL SHORT TERM TREASURY FUND
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FINANCIAL HIGHLIGHTS (UNAUDITED)
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 the period from October 29, 1993
(commencement of operations) to March 31, 1994. This information has been
derived from information provided in the Fund's financial statements.
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PER SHARE DATA: CLASS A SHARES CLASS B SHARES
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Net asset value, beginning of period............................................. $ 2.00 $ 2.00
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INVESTMENT OPERATIONS:
Investment income--net........................................................... .04 .04
Net realized and unrealized (loss) on investments................................ (.03) (.02)
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TOTAL FROM INVESTMENT OPERATIONS............................................. .01 .02
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DISTRIBUTIONS;
Dividends from investment income--net............................................ (.04) (.04)
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Net asset value, end of period................................................... $ 1.97 $ 1.98
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TOTAL INVESTMENT RETURN(1) 1.47% 2.42%
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RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets (1)...................................... .20% .45%
Ratio of net investment income to average net assets (1)......................... 5.01% 4.81%
Portfolio Turnover Rate (2)...................................................... 15.67% 15.67%
Net Assets, end of period (000's Omitted)........................................ $42,139 $29,831
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(1) Annualized.
(2) Not annualized.
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See notes to financial statements.
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DREYFUS INSTITUTIONAL SHORT TERM TREASURY FUND
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Institutional Short Term Treasury Fund (the "Fund") was organized
as a Massachusetts business trust on March 12, 1992 and had no operations until
October 29, 1993 (commencement of operations) other than matters relating to its
organization and registration as a diversified open-end management investment
company under the Investment Company Act of 1940 ("Act") and the Securities Act
of 1933 and the sale and issuance of 25,000 Class A shares and 25,000 Class B
shares of Beneficial Interest ("Initial Shares") to The Dreyfus Corporation
("Manager"). Dreyfus Service Corporation ("Distributor") acts as the distributor
of the Fund's shares. As of March 31, 1994, the Manager held 2,590,780 shares
for Class A and 25,510 shares for Class B. The Distributor is a wholly-owned
subsidiary of the Manager. The Fund's fiscal year ends on September 30.
The Fund offers both Class A and Class B shares. Class A shares are subject
to a Shareholder Services Plan and 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: The Fund's investments are valued at the mean
between the quoted bid prices and asked prices.
(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
including, where applicable, amortization of discount on investments, is
recognized on the accrual basis.
(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 qualify as a
regulated investment company, if such qualification is in the best interest 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.
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, brokerage, interest on
borrowings 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 Series' net assets in accordance with California "blue sky"
regulations.
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DREYFUS INSTITUTIONAL SHORT TERM TREASURY FUND
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Currently, due to an undertaking, 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, 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 the 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 may make payments to one or more Service Agents
(financial institutions, securities dealers, or other industry professional)
based on the value of the Fund's Class B shares owned by clients of the Service
Agent. During the period ended March 31, 1994, $15,391 was charged to the Fund
pursuant to the Class B Service Plan.
(C) 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 $1,000 and an attendance
fee of $250 per meeting.
(D) 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.
NOTE 3--SECURITIES TRANSACTIONS:
Purchases and sales of investment securities, other than short-term
securities, during the period ended March 31, 1994, amounted to $438,504,145 and
$410,818,501, respectively.
At March 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).
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DREYFUS INSTITUTIONAL
SHORT TERM TREASURY FUND
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. 721SA943
