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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Dreyfus Govt Cash Mgmt Administrative Shs (MM) | NASDAQ:DAGXX | NASDAQ | Ordinary Share |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.00 | - |
Contents
The Funds | ||
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Introduction | 1 | |
Dreyfus Government Cash Management | ||
Goal/Approach | 2 | |
Main Risks | 2 | |
Past Performance | 3 | |
Expenses | 4 | |
Dreyfus Government Prime | ||
Cash Management | ||
Goal/Approach | 5 | |
Main Risks | 5 | |
Past Performance | 6 | |
Expenses | 7 | |
Management | 8 | |
Financial Highlights | 10 | |
Account Information | ||
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Account Policies | 11 | |
Distributions and Taxes | 15 | |
Services for Fund Investors | 16 | |
For More Information | ||
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See back cover.
The Funds
INTRODUCTION
Each fund is a money market mutual fund with a separate investment portfolio. The operations and results of one fund are unrelated to those of the other fund.This combined prospectus has been prepared for your convenience so that you can consider two investment choices in one document.
As a money market fund, each fund is subject to maturity, quality and diversification requirements designed to help it maintain a stable share price.
Dreyfus Government Prime Cash Management invests only in U.S. government securities, and Dreyfus Government Cash Management invests only in U.S. government securities and in repurchase agreements.
An investment in a fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although each fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a fund.
Concepts to understand
Money market fund: a specific type of fund that seeks to maintain a $1.00 price per share. Money market funds are subject to strict federal requirements and must:
Repurchase agreement: a commercial bank or securities dealer sells securities to a fund and agrees to repurchase them at an agreed-upon date and price. These agreements offer a fund a means of investing money for a short period of time.
The Funds 1
Dreyfus Government Cash Management
GOAL/APPROACH
The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.
To pursue its goal, the fund invests in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities, and repurchase agreements (including tri-party repurchase agreements). The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government.
MAIN RISKS
The funds yield will fluctuate as the short-term securities in its portfolio mature and the proceeds are reinvested in securities with different interest rates.
While the fund has maintained a constant share price since inception, and will continue to try to do so, the following factors could reduce the funds income level and/or share price:
Not all obligations of the U.S. government, its agencies and instrumentalities are backed by the full faith and credit of the U.S. Treasury. Some obligations, such as those issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer.Any guarantee by the U.S. government or its agencies or instrumentalities of a security held by the fund does not apply to the market value of such security or to shares of the fund itself. In addition, because many types of U.S. government securities trade actively outside the United States, their prices may rise and fall as changes in global economic conditions affect the demand for these securities.
2
PAST PERFORMANCE
The bar chart and table below illustrate the risks of investing in the fund. The bar chart shows the changes in the performance of the funds Institutional shares from year to year. The table shows the average annual total returns of the funds Institutional shares over time. All returns assume reinvestment of dividends and distributions. Of course, past performance (before and after taxes) is no guarantee of future results.
Average annual total returns as of 12/31/07 | ||||
1 Year | 5 Years | 10 Years | ||
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5.03% | 3.03% | 3.76% | ||
Clients should call your Citizens Representative or | ||||
1-800-242-2224 for the current yield for Institutional | ||||
shares. Individuals or entities for whom institutions may | ||||
purchase or redeem shares should call the institution | ||||
directly. |
What this fund is and isnt
This fund is a mutual fund: a pooled investment that is professionally managed and gives you the opportunity to participate in financial markets. It strives to reach its stated goal, although as with all mutual funds, it cannot offer guaranteed results.
An investment in this fund is not a bank deposit. It is not insured or guaranteed by the FDIC or any other government agency. It is not a complete investment program. You could lose money in this fund, but you also have the potential to make money.
Dreyfus Government Cash Management 3
DREYFUS GOVERNMENT CASH MANAGEMENT (continued)
EXPENSES
As an investor, you pay certain fees and expenses in connection with the fund, which are described for Institutional shares in the table below. Annual fund operating expenses are paid out of fund assets, so their effect is reflected in the amount of income available for distribution to shareholders.
Fee table | ||||||
Annual fund operating expenses | ||||||
% of average daily net assets | ||||||
Management fees | 0.20% | |||||
Other expenses | none | |||||
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Total | 0.20% | |||||
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Expense example | ||||||
1 Year | 3 Years | 5 Years | 10 Years | |||
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$20 | $64 | $113 | $255 |
This example shows what you could pay in expenses over time. It uses the same hypothetical conditions other funds use in their prospectuses: $10,000 initial investment, 5% total return each year and no changes in expenses. The figures shown would be the same whether you sold your shares at the end of a period or kept them. Because actual returns and expenses will be different, the example is for comparison only.
Concepts to understand
Management fee: the fee paid to Dreyfus for managing the funds portfolio and assisting in all aspects of the funds operations.
From time to time, Dreyfus may limit expenses to the extent it deems appropriate to enhance the yield of a fund, or a particular class of a fund, during periods when fixed expenses have a significant impact on the yield of a fund, or a particular class of a fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and temporary and may be revised or terminated by Dreyfus at any time without notice.
Other expenses: as to the funds Institutional shares, under an agreement with Dreyfus, the fund only pays the management fee. Dreyfus pays all other fund expenses directly. Dreyfus may terminate this agreement upon at least 90 days prior notice to investors, but has committed not to do so at least through May 31, 2009.
Since the inception of the funds Institutional shares, pursuant to undertakings in effect, the annual fund operating expenses for the funds Institutional shares have not exceeded 0.20% .
4
Dreyfus Government Prime Cash Management
GOAL/APPROACH
The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.
To pursue its goal, the fund only invests in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities. The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government.
While the fund is permitted to invest in the full range of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, the fund currently is managed so that income paid by the fund will be exempt from state and local taxes. Because rules regarding the state and local taxation of dividend income can differ from state to state, investors are urged to consult their tax advisers about the taxation of the funds dividend income in their state and locality.
MAIN RISKS
The funds yield will fluctuate as the short-term securities in its portfolio mature and the proceeds are reinvested in securities with different interest rates.
While the fund has maintained a constant share price since inception, and will continue to try to do so, the following factors could reduce the funds income level and/or share price:
Not all obligations of the U.S. government, its agencies and instrumentalities are backed by the full faith and credit of the U.S. Treasury. Some obligations, such as those issued by the Student Loan Marketing Association and the Federal Home Loan Banks, are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer.Any guarantee by the U.S. government or its agencies or instrumentalities of a security held by the fund does not apply to the market value of such security or to shares of the fund itself. In addition, because many types of U.S. government securities trade actively outside the United States, their prices may rise and fall as changes in global economic conditions affect the demand for these securities.
Dreyfus Government Prime Cash Management 5
DREYFUS GOVERNMENT PRIME CASH MANAGEMENT (continued)
PAST PERFORMANCE
The bar chart and table below illustrate the risks of investing in the fund. The bar chart shows the changes in the performance of the funds Institutional shares from year to year. The table shows the average annual total returns of the funds Institutional shares over time. All returns assume reinvestment of dividends and distributions. Of course, past performance (before and after taxes) is no guarantee of future results.
Average annual total returns as of 12/31/07 | ||||
Since | ||||
inception | ||||
1 Year | 5 Years | (2/27/98) | ||
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5.00% | 2.97% | 3.67% | ||
Clients should call your Citizens Representative or | ||||
1-800-242-2224 for the current yield for Institutional | ||||
shares. Individuals or entities for whom institutions may | ||||
purchase or redeem shares should call the institution | ||||
directly. |
What this fund is and isnt
This fund is a mutual fund: a pooled investment that is professionally managed and gives you the opportunity to participate in financial markets. It strives to reach its stated goal, although as with all mutual funds, it cannot offer guaranteed results.
An investment in this fund is not a bank deposit. It is not insured or guaranteed by the FDIC or any other government agency. It is not a complete investment program. You could lose money in this fund, but you also have the potential to make money.
6
EXPENSES
As an investor, you pay certain fees and expenses in connection with the fund, which are described for Institutional shares in the table below. Annual fund operating expenses are paid out of fund assets, so their effect is reflected in the amount of income available for distribution to shareholders.
Fee table | ||||||
Annual fund operating expenses | ||||||
% of average daily net assets | ||||||
Management fees | 0.20% | |||||
Other expenses | none | |||||
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Total | 0.20% | |||||
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Expense example | ||||||
1 Year | 3 Years | 5 Years | 10 Years | |||
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$20 | $64 | $113 | $255 |
This example shows what you could pay in expenses over time. It uses the same hypothetical conditions other funds use in their prospectuses: $10,000 initial investment, 5% total return each year and no changes in expenses. The figures shown would be the same whether you sold your shares at the end of a period or kept them. Because actual returns and expenses will be different, the example is for comparison only.
Concepts to understand
Management fee: the fee paid to Dreyfus for managing the funds portfolio and assisting in all aspects of the funds operations.
From time to time, Dreyfus may limit expenses to the extent it deems appropriate to enhance the yield of a fund, or a particular class of a fund, during periods when fixed expenses have a significant impact on the yield of a fund, or a particular class of a fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and temporary and may be revised or terminated by Dreyfus at any time without notice.
Other expenses: as to the funds Institutional shares, under an agreement with Dreyfus, the fund only pays the management fee. Dreyfus pays all other fund expenses directly. Dreyfus may terminate this agreement upon at least 90 days prior notice to investors, but has committed not to do so at least through May 31, 2009.
Since the inception of the funds Institutional shares, pursuant to undertakings in effect, the annual fund operating expenses for the funds Institutional shares have not exceeded 0.20% .
Dreyfus Government Prime Cash Management 7
MANAGEMENT
Investment adviser
The investment adviser for each fund is The Dreyfus Corporation (Dreyfus), 200 Park Avenue, New York, New York 10166. Founded in 1947, Dreyfus manages approximately $315 billion in approximately 170 mutual fund portfolios. For the past fiscal year, each fund paid Dreyfus a management fee at the annual rate of 0.20% of the funds average daily net assets. A discussion regarding the basis for the boards approving each funds management agreement with Dreyfus is available in the funds semiannual report for the six months ended July 31, 2007. Dreyfus is the primary mutual fund business of The Bank of New York Mellon Corporation (BNY Mellon), a global financial services company focused on helping clients move and manage their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing asset and wealth management, asset servicing, issuer services, and treasury services through a worldwide client-focused team. BNY Mellon has more than $23 trillion in assets under custody and administration and $1.1 trillion in assets under management, and it services more than $11 trillion in outstanding debt. Additional information is available at www.bnymellon.com .
The Dreyfus asset management philosophy is based on the belief that discipline and consistency are important to investment success. For each fund, Dreyfus seeks to establish clear guidelines for portfolio management and to be systematic in making decisions.This approach is designed to provide each fund with a distinct, stable identity.
8
Distributor
Each funds distributor is MBSC Securities Corporation (MBSC), a wholly-owned subsidiary of Dreyfus. Dreyfus or MBSC may provide cash payments out of its own resources to financial intermediaries that sell shares of the funds or provide other services. Such payments are separate from any Rule 12b-1 fees paid by the fund to those intermediaries. Because those payments are not made by shareholders or the funds, a funds total expense ratio will not be affected by any such payments. These additional payments may be made to intermediaries, including affiliates, that provide shareholder servicing, sub-administration, recordkeeping and/or sub-transfer agency services, marketing support and/or access to sales meetings, sales representatives and management representatives of the financial intermediary. Cash compensation also may be paid from Dreyfus or MBSCs own resources to intermediaries for inclusion of the funds on a sales list, including a preferred or select sales list or in other sales programs.These payments sometimes are referred to as revenue sharing. From time to time, Dreyfus or MBSC also may provide cash or non-cash compensation to financial intermediaries or their representatives in the form of occasional gifts; occasional meals, tickets or other entertainment; support for due diligence trips; educational conference sponsorship; support for recognition programs; and other forms of cash or non-cash compensation permissible under broker-dealer regulations. In some cases, these payments or compensation may create an incentive for a financial intermediary or its employees to recommend or sell shares of a fund to you. Please contact your financial representative for details about any payments they or their firm may receive in connection with the sale of fund shares or the provision of services to the funds.
Code of ethics
The funds, Dreyfus and MBSC have each adopted a code of ethics that permits its personnel, subject to such code, to invest in securities, including securities that may be purchased or held by the funds. The Dreyfus code of ethics restricts the personal securities transactions of its employees, and requires portfolio managers and other investment personnel to comply with the codes preclearance and disclosure procedures. The primary purpose of the code is to ensure that personal trading by Dreyfus employees does not disadvantage any Dreyfus-managed fund.
Management 9
FINANCIAL HIGHLIGHTS
The following tables describe the performance of each funds Institutional shares for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the funds financial statements, is included in the annual report, which is available to investors upon request.
Year Ended January 31, | ||||||||||||
Dreyfus Government Cash Management | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
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Per-Share Data ($): | ||||||||||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Investment operations: | Investment income net | .048 | .049 | .032 | .013 | .010 | ||||||
Distributions: | Dividends from investment | |||||||||||
income net | (.048) | (.049) | (.032) | (.013) | (.010) | |||||||
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Total Return (%) | 4.93 | 4.99 | 3.23 | 1.26 | 1.03 | |||||||
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Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses to average net assets | .20 | .20 | .20 | .20 | .20 | |||||||
Ratio of net investment income | ||||||||||||
to average net assets | 4.73 | 4.89 | 3.15 | 1.20 | 1.03 | |||||||
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Net assets, end of period ($ in millions) | 9,303 | 3,118 | 2,842 | 3,571 | 5,409 | |||||||
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Year Ended January 31, | ||||||||||||
Dreyfus Government Prime Cash Management | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
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Per-Share Data ($): | ||||||||||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Investment operations: | Investment income net | .048 | .048 | .031 | .012 | .009 | ||||||
Distributions: | Dividends from investment | |||||||||||
income net | (.048) | (.048) | (.031) | (.012) | (.009) | |||||||
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Total Return (%) | 4.91 | 4.95 | 3.18 | 1.21 | .94 | |||||||
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Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses to average net assets | .20 | .20 | .20 | .20 | .20 | |||||||
Ratio of net investment income | ||||||||||||
to average net assets | 4.67 | 4.86 | 3.21 | 1.19 | .91 | |||||||
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Net assets, end of period ($ in millions) | 2,327 | 1,005 | 773 | 537 | 415 |
10
Account Information
ACCOUNT POLICIES
Each fund is designed for institutional investors, particularly banks, acting for themselves or in a fiduciary, advisory, agency, custodial or similar capacity. Generally, each investor will be required to open a single master account with the fund for all purposes. In certain cases, the fund may request investors to maintain separate master accounts for shares held by the investor (i) for its own account, for the account of other institutions and for accounts for which the institution acts as a fiduciary, and (ii) for accounts for which the investor acts in some other capacity. An institution may arrange with the funds transfer agent for sub-accounting services and will be charged directly for the cost of such services. Institutions purchasing Institutional shares for the benefit of their clients may impose policies, limitations and fees which are different from those described in this prospectus.
Buying shares
The price for fund shares is the funds net asset value per share (NAV), which is generally calculated at 12:00 noon, 5:00 p.m. and 8:00 p.m. on days the New York Stock Exchange is open for regular business. An order will be priced at the next NAV calculated after the order is received in proper form by the funds transfer agent or other authorized entity. Each funds investments are valued based on amortized cost. As a result, portfolio securities are valued at their acquisition cost, adjusted for discounts or premiums reflected in their purchase price. This method of valuation is designed to enable the fund to price its shares at $1.00 per share.
As to Dreyfus Government Cash Management, orders in proper form placed prior to 12:00 noon or 5:00 p.m., and payments for which are received in or converted into Federal Funds by the funds custodian by 6:00 p.m., will become effective at the price determined at 12:00 noon or 5:00 p.m., respectively, on that day. In either case, shares purchased will receive the dividend declared on that day.
As to Dreyfus Government Prime Cash Management, orders in proper form placed prior to 12:00 noon or 3:00 p.m., and payments for which are received in or converted into Federal Funds by the funds custodian by 6:00 p.m., will become effective at the price determined at 12:00 noon or 5:00 p.m., respectively, on that day. In either case, shares purchased will receive the dividend declared on that day. Orders for shares placed between 3:00 p.m and 5:00 p.m. will not be accepted and executed, and notice of the purchase order being rejected will be given to the institution placing the order, and any funds received will be returned promptly to the sending institution.
Account Information 11
ACCOUNT POLICIES (continued)
As to each fund, orders effected through compatible computer facilities after 5:00 p.m., but by 8:00 p.m., will become effective at the price determined at 8:00 p.m. on that day, if Federal Funds are received by the funds custodian by 11:00 a.m. on the following business day. In this case, shares purchased will start earning dividends on the business day following the date the order became effective. Orders effected between 5:00 p.m. and 8:00 p.m., by a means other than a compatible computer facility (and otherwise in proper form), will become effective on the following business day.
All times are Eastern time.
Minimum investments | ||
Initial | Additional | |
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Institutional shares $10,000,000 * | none | |
* The minimum initial investment in Institutional shares is | ||
$10,000,000, unless: (a) the investor has invested at | ||
least $10,000,000 in the aggregate among any Dreyfus | ||
Cash Management fund, Dreyfus Institutional Cash | ||
Advantage Fund and Dreyfus Institutional Cash | ||
Advantage Plus Fund (including in any class of a fund); | ||
or (b) the investor has, in the opinion of Dreyfus | ||
Investments Division, adequate intent and availability of | ||
assets to reach a future level of | investment of | |
$10,000,000 among the funds named above. |
Concepts to understand
Net asset value (NAV): a mutual funds share price on a given day. A funds NAV is calculated by dividing the value of its net assets by the number of its existing shares outstanding.
When calculating its NAV, a fund compares the NAV using amortized cost to its NAV using available market quotations or market equivalents which generally are provided by an independent pricing service approved by the funds board. The pricing services procedures are reviewed under the general supervision of the board.
Amortized cost: the value of a funds portfolio securities, which does not take into account unrealized gains or losses. As a result, portfolio securities are valued at their acquisition cost, adjusted over time based on the discounts or premiums reflected in their purchase price. Each fund uses this valuation method pursuant to Rule 2a-7 under the 1940 Act in order to be able to price its shares at $1.00 per share. In accordance with Rule 2a-7, each fund is subject to certain maturity, quality and diversification requirements to help it maintain the $1.00 share price.
12
Selling shares
Investors may sell (redeem) shares at any time by wire, telephone, or compatible computer facility. Shares will be sold at the next determined NAV.
If a redemption request is received in proper form by the funds transfer agent or other authorized entity by 5:00 p.m., the proceeds of the redemption, if transfer by wire is requested, ordinarily will be transmitted in Federal Funds on the same day, and the shares will not receive the dividend declared on that day. If a request for redemption is received in proper form by the funds transfer agent or other authorized entity after 5:00 p.m., but by 8:00 p.m., the proceeds of the redemption ordinarily will be transmitted in Federal Funds on the next business day, and the shares will receive the dividend declared on that day.
For all funds, all times are Eastern time.
The processing of redemptions and the delivery of the proceeds may be delayed beyond the same or next business day, depending on the circumstance, for any period (i) during which the New York Stock Exchange is closed (other than on holidays or weekends), or during which trading on the New York Stock Exchange is restricted; (ii) when an emergency exists that makes difficult the disposal of securities owned by a fund or the determination of the fair value of the funds net assets; or (iii) as permitted by order of the Securities and Exchange Commission for the protection of fund shareholders. For these purposes, the Securities and Exchange Commission determines the conditions under which trading shall be deemed to be restricted and an emergency shall be deemed to exist.Any certificates representing fund shares being sold must be returned with the redemption request.
Before selling recently purchased shares, please note that if the fund has not yet collected payment for the shares being sold, it may delay sending the proceeds for up to eight business days or until it has collected payment.
Account Information 13
ACCOUNT POLICIES (continued)
General policies
Unless the investor declines telephone privileges on the application, the investor may be responsible for any fraudulent telephone order as long as Dreyfus takes reasonable measures to verify the order.
Money market funds generally are used by investors for short-term investments, often in place of bank checking or savings accounts, or for cash management purposes. Investors value the ability to add and withdraw their funds quickly, without restriction. For this reason, although Dreyfus discourages excessive trading and other abusive trading practices, the funds have not adopted policies and procedures, or imposed redemption fees or other restrictions such as minimum holding periods, to deter frequent purchases and redemptions of fund shares. Dreyfus also believes that money market funds, such as the funds, are not targets of abusive trading practices, because money market funds seek to maintain a $1.00 per share price and typically do not fluctuate in value based on market prices. However, frequent purchases and redemptions of a funds shares could increase the funds transaction costs, such as market spreads and custodial fees, and may interfere with the efficient management of the funds portfolio, which could detract from the funds performance.Accordingly, each fund reserves the right to refuse any purchase or exchange request. Funds in the Dreyfus Family of Funds that are not money market mutual funds have approved policies and procedures that are intended to discourage and prevent abusive trading practices in those mutual funds, which may apply to exchanges from or into a fund. If you plan to exchange your fund shares for shares of another Dreyfus fund, please read the prospectus of that other Dreyfus fund for more information.
Each fund reserves the right to:
Each fund also reserves the right to make a redemption in kind payment in portfolio securities rather than cash if the amount being redeemed is deemed by the manager to be large enough to affect fund operations. Investors are urged to call 1-800-242-2224 before effecting any large redemption.
Each fund may also process purchase and sale orders and calculate its NAV on days that the funds primary trading markets are open and the funds management determines to do so.
14
DISTRIBUTIONS AND TAXES
Each fund earns dividends, interest and other income from its investments, and distributes this income (less expenses) to shareholders as dividends. Each fund also realizes capital gains from its investments, and distributes these gains (less any losses) to shareholders as capital gain distributions. Each fund normally pays dividends once a month and capital gain distributions annually. Fund dividends and capital gain distributions will be reinvested in the fund unless the investor instructs the fund otherwise. There are no fees or sales charges on reinvestments.
Distributions paid are subject to federal income tax, and may also be subject to state or local taxes (unless the investor is investing through a tax-advantaged retirement account). For federal tax purposes, in general, certain fund distributions, including distributions of short-term capital gains, are taxable to investors as ordinary income.
F or federal tax purposes, certain distributions, such as distributions of short-term capital gains, are taxable to investors as ordinary income, while long-term capital gains are taxable to investors as capital gains.
Distributions that are federally taxable as ordinary income or capital gains are generally subject to the states personal income taxes. However, because the funds invest principally in U.S. Government securities, some income may not be subject to state income taxes.
The tax status of any distribution generally is the same regardless of how long an investor has been in the fund and whether distributions are reinvested or taken in cash.
An investors sale of shares, including exchanges into other funds, may result in a capital gain or loss for tax purposes.A capital gain or loss on an investment in the fund generally is the difference between the cost of the investors shares and the amount received when the investor sells them.
The tax status of an investors distributions will be detailed in the investors annual tax statement from the fund. Because everyones tax situation is unique, please consult a tax advisor before investing.
Account Information 15
SERVICES FOR FUND INVESTORS
Account statements
Every fund investor automatically receives regular account statements. Each investor also will be sent a yearly statement detailing the tax characteristics of any dividends and distributions the investor has received.
16
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Contents
The Funds | ||
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Introduction | 1 | |
Dreyfus Government Cash Management | ||
Goal/Approach | 2 | |
Main Risks | 2 | |
Past Performance | 3 | |
Expenses | 4 | |
Dreyfus Government Prime | ||
Cash Management | ||
Goal/Approach | 5 | |
Main Risks | 5 | |
Past Performance | 6 | |
Expenses | 7 | |
Management | 8 | |
Financial Highlights | 10 | |
Account Information | ||
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Account Policies | 11 | |
Distributions and Taxes | 15 | |
Services for Fund Investors | 16 | |
For More Information | ||
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See back cover.
The Funds
INTRODUCTION
Each fund is a money market mutual fund with a separate investment portfolio. The operations and results of one fund are unrelated to those of the other fund.This combined prospectus has been prepared for your convenience so that you can consider two investment choices in one document.
As a money market fund, each fund is subject to maturity, quality and diversification requirements designed to help it maintain a stable share price.
Dreyfus Government Prime Cash Management invests only in U.S. government securities, and Dreyfus Government Cash Management invests only in U.S. government securities and in repurchase agreements.
An investment in a fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.Although each fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a fund.
Concepts to understand
Money market fund: a specific type of fund that seeks to maintain a $1.00 price per share. Money market funds are subject to strict federal requirements and must:
Repurchase agreement: a commercial bank or securities dealer sells securities to a fund and agrees to repurchase them at an agreed-upon date and price. These agreements offer a fund a means of investing money for a short period of time.
The Funds 1
Dreyfus Government Cash Management
GOAL/APPROACH
The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.
To pursue its goal, the fund invests in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities, and repurchase agreements (including tri-party repurchase agreements). The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government.
MAIN RISKS
The funds yield will fluctuate as the short-term securities in the portfolio mature and the proceeds are reinvested in securities with different interest rates.
While the fund has maintained a constant share price since inception, and will continue to try to do so, the following factors could reduce the funds income level and/or share price:
Not all obligations of the U.S. government, its agencies and instrumentalities are backed by the full faith and credit of the U.S. Treasury. Some obligations, such as those issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer.Any guarantee by the U.S. government or its agencies or instrumentalities of a security held by the fund does not apply to the market value of such security or to shares of the fund itself. In addition, because many types of U.S. government securities trade actively outside the United States, their prices may rise and fall as changes in global economic conditions affect the demand for these securities.
2
PAST PERFORMANCE
The bar chart and table below illustrate the risks of investing in the fund. The bar chart shows the changes in the performance of the funds Investor shares from year to year.The table shows the average annual total returns of the funds Investor shares over time. All returns assume reinvestment of dividends and distributions. Of course, past performance (before and after taxes) is no guarantee of future results.
Year-by-year total returns as of 12/31 each year (%)
Best Quarter: | Q3 00 | +1.56% | ||
Worst Quarter: | Q2 04 | +0.16% |
The year-to-date total return of the funds Investor shares as of |
3/31/08 was 0.81%. |
Average annual total returns as of 12/31/07
1 Year | 5 Years | 10 Years | ||
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4.77% | 2.77% | 3.50% |
Clients should call your Citizens Representative or 1-800-242-2224 for the current yield for Investor shares. Individuals or entities for whom institutions may purchase or redeem shares should call the institution directly.
What this fund is and isnt
This fund is a mutual fund: a pooled investment that is professionally managed and gives you the opportunity to participate in financial markets. It strives to reach its stated goal, although as with all mutual funds, it cannot offer guaranteed results.
An investment in this fund is not a bank deposit. It is not insured or guaranteed by the FDIC or any other government agency. It is not a complete investment program. You could lose money in this fund, but you also have the potential to make money.
Dreyfus Government Cash Management 3
DREYFUS GOVERNMENT CASH MANAGEMENT (continued)
EXPENSES
As an investor, you pay certain fees and expenses in connection with the fund, which are described for Investor shares in the table below. Annual fund operating expenses are paid out of fund assets, so their effect is reflected in the amount of income available for distribution to shareholders.
Fee table | ||
Annual fund operating expenses | ||
% of average daily net assets | ||
Management fees | 0.20% | |
Rule 12b-1 fee | 0.25% | |
Other expenses | none | |
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Total | 0.45% |
Expense example | ||||||
1 Year | 3 Years | 5 Years | 10 Years | |||
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$46 | $144 | $252 | $567 |
This example shows what you could pay in expenses over time. It uses the same hypothetical conditions other funds use in their prospectuses: $10,000 initial investment, 5% total return each year and no changes in expenses. The figures shown would be the same whether you sold your shares at the end of a period or kept them. Because actual returns and expenses will be different, the example is for comparison only.
Concepts to understand
Management fee: the fee paid to Dreyfus for managing the funds portfolio and assisting in all aspects of the funds operations.
From time to time, Dreyfus may limit expenses to the extent it deems appropriate to enhance the yield of a fund, or a particular class of a fund, during periods when fixed expenses have a significant impact on the yield of a fund, or a particular class of a fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and temporary and may be revised or terminated by Dreyfus at any time without notice.
Rule 12b-1 fee: the fee paid to the funds distributor for distributing Investor shares, for advertising and marketing related to Investor shares, and for providing account service and maintenance. Because this fee is paid on an ongoing basis out of fund assets attributable to Investor shares, over time it will increase the cost of your investment in Investor shares and could cost you more than paying other types of sales charges.
Other expenses: under an agreement with Dreyfus, in effect since the fund commenced offering Investor shares, the fund only pays the management fee and the Rule 12b-1 fee. Dreyfus pays all other fund expenses directly. Dreyfus may terminate this agreement upon at least 90 days prior notice to investors, but has committed not to do so at least through May 31, 2009.
4
Dreyfus Government Prime Cash Management
GOAL/APPROACH
The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.
To pursue its goal, the fund only invests in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities. The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government.
While the fund is permitted to invest in the full range of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, the fund currently is managed so that income paid by the fund will be exempt from state and local taxes. Because rules regarding the state and local taxation of dividend income can differ from state to state, investors are urged to consult their tax advisers about the taxation of the funds dividend income in their state and locality.
MAIN RISKS
The funds yield will fluctuate as the short-term securities in the portfolio mature and the proceeds are reinvested in securities with different interest rates.
While the fund has maintained a constant share price since inception, and will continue to try to do so, the following factors could reduce the funds income level and/or share price:
Not all obligations of the U.S. government, its agencies and instrumentalities are backed by the full faith and credit of the U.S. Treasury. Some obligations, such as those issued by the Student Loan Marketing Association and the Federal Home Loan Banks, are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer.Any guarantee by the United States government or its agencies or instrumentalities of a security held by the fund does not apply to the market value of such security or to shares of the fund itself. In addition, because many types of U.S. government securities trade actively outside the United States, their prices may rise and fall as changes in global economic conditions affect the demand for these securities.
Dreyfus Government Prime Cash Management 5
DREYFUS GOVERNMENT PRIME CASH MANAGEMENT (continued)
PAST PERFORMANCE
The bar chart and table below illustrate the risks of investing in the fund. The bar chart shows the changes in the performance of the funds Investor shares from year to year.The table shows the average annual total returns of the funds Investor shares over time. All returns assume reinvestment of dividends and distributions. Of course, past performance (before and after taxes) is no guarantee of future results.
Year-by-year total returns as of 12/31 each year (%)
Best Quarter: | Q3 00 | +1.55% | ||
Worst Quarter: | Q2 04 | +0.14% |
The year-to-date total return of the funds Investor shares as of |
3/31/08 was 0.78%. |
Average annual total returns as of 12/31/07
Since | ||||
inception | ||||
1 Year | 5 Years | (2/27/98) | ||
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||
4.74% | 2.72% | 3.41% |
Clients should call your Citizens Representative or 1-800-242-2224 for the current yield for Investor shares. Individuals or entities for whom institutions may purchase or redeem shares should call the institution directly.
What this fund is and isnt
This fund is a mutual fund: a pooled investment that is professionally managed and gives you the opportunity to participate in financial markets. It strives to reach its stated goal, although as with all mutual funds, it cannot offer guaranteed results.
An investment in this fund is not a bank deposit. It is not insured or guaranteed by the FDIC or any other government agency. It is not a complete investment program. You could lose money in this fund, but you also have the potential to make money.
6
EXPENSES
As an investor, you pay certain fees and expenses in connection with the fund, which are described for Investor shares in the table below. Annual fund operating expenses are paid out of fund assets, so their effect is reflected in the amount of income available for distribution to shareholders.
Fee table | ||
Annual fund operating expenses | ||
% of average daily net assets | ||
Management fees | 0.20% | |
Rule 12b-1 fee | 0.25% | |
Other expenses | none | |
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|
Total | 0.45% |
Expense example | ||||||
1 Year | 3 Years | 5 Years | 10 Years | |||
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|||
$46 | $144 | $252 | $567 |
This example shows what you could pay in expenses over time. It uses the same hypothetical conditions other funds use in their prospectuses: $10,000 initial investment, 5% total return each year and no changes in expenses. The figures shown would be the same whether you sold your shares at the end of a period or kept them. Because actual returns and expenses will be different, the example is for comparison only.
Concepts to understand
Management fee: the fee paid to Dreyfus for managing the funds portfolio and assisting in all aspects of the funds operations.
From time to time, Dreyfus may limit expenses to the extent it deems appropriate to enhance the yield of a fund, or a particular class of a fund, during periods when fixed expenses have a significant impact on the yield of a fund, or a particular class of a fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and temporary and may be revised or terminated by Dreyfus at any time without notice.
Rule 12b-1 fee: the fee paid to the funds distributor for distributing Investor shares, for advertising and marketing related to Investor shares, and for providing account service and maintenance. Because this fee is paid on an ongoing basis out of fund assets attributable to Investor shares, over time it will increase the cost of your investment in Investor shares and could cost you more than paying other types of sales charges.
Other expenses: under an agreement with Dreyfus, in effect since the fund commenced offering Investor shares, the fund only pays the management fee and the Rule 12b-1 fee. Dreyfus pays all other fund expenses directly. Dreyfus may terminate this agreement upon at least 90 days prior notice to investors, but has committed not to do so at least through May 31, 2009.
Dreyfus Government Prime Cash Management 7
MANAGEMENT
Investment adviser
The investment adviser for the fund is The Dreyfus Corporation (Dreyfus), 200 Park Avenue, New York, New York 10166. Founded in 1947, Dreyfus manages approximately $315 billion in approximately 170 mutual fund portfolios. For the past fiscal year, each fund paid Dreyfus a management fee at the annual rate of 0.20% of the funds average daily net assets. A discussion regarding the basis for the boards approving each funds management agreement with Dreyfus is available in the funds semiannual report for the six months ended July 31, 2007. Dreyfus is the primary mutual fund business of The Bank of New York Mellon Corporation (BNY Mellon), a global financial services company focused on helping clients move and manage their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing asset and wealth management, asset servicing, issuer services, and treasury services through a worldwide client-focused team. BNY Mellon has more than $23 trillion in assets under custody and administration and $1.1 trillion in assets under management, and it services more than $11 trillion in outstanding debt. Additional information is available at www.bnymellon.com .
The Dreyfus asset management philosophy is based on the belief that discipline and consistency are important to investment success. For each fund, Dreyfus seeks to establish clear guidelines for portfolio management and to be systematic in making decisions.This approach is designed to provide each fund with a distinct, stable identity.
8
Distributor
Each funds distributor is MBSC Securities Corporation (MBSC), a wholly-owned subsidiary of Dreyfus. Dreyfus or MBSC may provide cash payments out of its own resources to financial intermediaries that sell shares of the funds or provide other services. Such payments are separate from any Rule 12b-1 fees paid by the funds to those intermediaries. Because those payments are not made by shareholders or the funds, a funds total expense ratio will not be affected by any such payments. These additional payments may be made to intermediaries, including affiliates, that provide shareholder servicing, sub-administration, recordkeeping and/or sub-transfer agency services, marketing support and/or access to sales meetings, sales representatives and management representatives of the financial intermediary. Cash compensation also may be paid from Dreyfus or MBSCs own resources to intermediaries for inclusion of the funds on a sales list, including a preferred or select sales list or in other sales programs.These payments sometimes are referred to as revenue sharing. From time to time, Dreyfus or MBSC also may provide cash or non-cash compensation to financial intermediaries or their representatives in the form of occasional gifts; occasional meals, tickets or other entertainment; support for due diligence trips; educational conference sponsorship; support for recognition programs; and other forms of cash or non-cash compensation permissible under broker-dealer regulations. In some cases, these payments or compensation may create an incentive for a financial intermediary or its employees to recommend or sell shares of a fund to you. Please contact your financial representative for details about any payments they or their firm may receive in connection with the sale of fund shares or the provision of services to the funds.
Code of ethics
The funds, Dreyfus and MBSC have each adopted a code of ethics that permits its personnel, subject to such code, to invest in securities, including securities that may be purchased or held by the funds. The Dreyfus code of ethics restricts the personal securities transactions of its employees, and requires portfolio managers and other investment personnel to comply with the codes preclearance and disclosure procedures. The primary purpose of the code is to ensure that personal trading by Dreyfus employees does not disadvantage any Dreyfus-managed fund.
Management 9
FINANCIAL HIGHLIGHTS
The following tables describe the performance of each funds Investor shares for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the funds financial statements, is included in the annual report, which is available upon request.
Year Ended January 31, | ||||||||||||
Dreyfus Government Cash Management | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
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Per-Share Data ($): | ||||||||||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Investment operations: | Investment income net | .046 | .046 | .029 | .010 | .008 | ||||||
Distributions: | Dividends from investment | |||||||||||
income net | (.046) | (.046) | (.029) | (.010) | (.008) | |||||||
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Total Return (%) | 4.67 | 4.72 | 2.97 | 1.01 | .78 | |||||||
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Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses to average net assets | .45 | .45 | .45 | .45 | .45 | |||||||
Ratio of net investment income | ||||||||||||
to average net assets | 4.48 | 4.64 | 2.90 | .95 | .78 | |||||||
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Net assets, end of period ($ in millions) | 1,738 | 909 | 1,050 | 1,287 | 1,307 |
Year Ended January 31, | ||||||||||||
Dreyfus Government Prime Cash Management | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
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Per-Share Data ($): | ||||||||||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Investment operations: | Investment income net | .046 | .046 | .029 | .010 | .007 | ||||||
Distributions: | Dividends from investment | |||||||||||
income net | (.046) | (.046) | (.029) | (.010) | (.007) | |||||||
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Total Return (%) | 4.65 | 4.69 | 2.92 | .96 | .69 | |||||||
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Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses to average net assets | .45 | .45 | .45 | .45 | .45 | |||||||
Ratio of net investment income | ||||||||||||
to average net assets | 4.42 | 4.61 | 2.96 | .94 | .66 | |||||||
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Net assets, end of period ($ in millions) | 563 | 275 | 242 | 209 | 243 |
10
Account Information
ACCOUNT POLICIES
The fund is designed for institutional investors, particularly banks, acting for themselves or in a fiduciary, advisory, agency, custodial or similar capacity. Generally, each investor will be required to open a single master account with the fund for all purposes. In certain cases, the fund may request investors to maintain separate master accounts for shares held by the investor (i) for its own account, for the account of other institutions and for accounts for which the institution acts as a fiduciary, and (ii) for accounts for which the investor acts in some other capacity. An institution may arrange with the funds transfer agent for sub-accounting services and will be charged directly for the cost of such services. Institutions purchasing Investor shares for the benefit of their clients may impose policies, limitations and fees which are different from those described in this prospectus.
Buying shares
The price for fund shares is the funds net asset value per share (NAV), which is generally calculated at 12:00 noon, 5:00 p.m. and 8:00 p.m. on days the New York Stock Exchange is open for regular business. An order will be priced at the next NAV calculated after the order is received in proper form by the funds transfer agent or other authorized entity. Each funds investments are valued based on amortized cost. As a result, portfolio securities are valued at their acquisition cost, adjusted for discounts or premiums reflected in their purchase price. This method of valuation is designed to enable the fund to price its shares at $1.00 per share.
As to Dreyfus Government Cash Management, orders in proper form placed prior to 12:00 noon or 5:00 p.m., and payments for which are received in or converted into Federal Funds by the funds custodian by 6:00 p.m., will become effective at the price determined at 12:00 noon or 5:00 p.m., respectively, on that day. In either case, shares purchased will receive the dividend declared on that day.
As to Dreyfus Government Prime Cash Management orders in proper form placed prior to 12:00 noon or 3:00 p.m., and payments for which are received in or converted into Federal Funds by the funds custodian by 6:00 p.m., will become effective at the price determined at 12:00 noon or 5:00 p.m., respectively, on that day. In either case, shares purchased will receive the dividend declared on that day. Orders for shares placed between 3:00 p.m and 5:00 p.m. will not be accepted and executed, and notice of the purchase order being rejected will be given to the institution placing the order, and any funds received will be returned promptly to the sending institution.
Account Information 11
ACCOUNT POLICIES (continued)
As to each fund, orders effected through compatible computer facilities after 5:00 p.m., but by 8:00 p.m., will become effective at the price determined at 8:00 p.m. on that day, if Federal Funds are received by the funds custodian by 11:00 a.m. on the following business day. In this case, shares purchased will start earning dividends on the business day following the date the order became effective. Orders effected between 5:00 p.m. and 8:00 p.m., by a means other than a compatible computer facility (and otherwise in proper form), will become effective on the following business day.
All times are Eastern time.
Minimum investments | ||||
Initial | Additional | |||
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Investor shares | $10,000,000 * | none |
* The minimum initial investment in Investor shares is |
$10,000,000, unless: (a) the investor has invested at |
least $10,000,000 in the aggregate among any Dreyfus |
Cash Management fund, Dreyfus Institutional Cash |
Advantage Fund and Dreyfus Institutional Cash |
Advantage Plus Fund (including in any class of a fund); |
or (b) the investor has, in the opinion of Dreyfus |
Investments Division, adequate intent and availability of |
assets to reach a future level of investment of |
$10,000,000 among the funds named above. |
Concepts to understand
Net asset value (NAV): a mutual funds share price on a given day. A funds NAV is calculated by dividing the value of its net assets by the number of its existing shares outstanding.
When calculating its NAV, a fund compares the NAV using amortized cost to its NAV using available market quotations or market equivalents which generally are provided by an independent pricing service approved by the funds board. The pricing services procedures are reviewed under the general supervision of the board.
Amortized cost: the value of a funds portfolio securities, which does not take into account unrealized gains or losses. As a result, portfolio securities are valued at their acquisition cost, adjusted over time based on the discounts or premiums reflected in their purchase price. Each fund uses this valuation method pursuant to Rule 2a-7 under the 1940 Act in order to be able to price its shares at $1.00 per share. In accordance with Rule 2a-7, each fund is subject to certain maturity, quality and diversification requirements to help it maintain the $1.00 share price.
12
Selling shares
Investors may sell (redeem) shares at any time by wire, telephone, or compatible computer facility. Shares will be sold at the next determined NAV.
If a redemption request is received in proper form by the funds transfer agent or other authorized entity by 5:00 p.m., the proceeds of the redemption, if transfer by wire is requested, ordinarily will be transmitted in Federal Funds on the same day, and the shares will not receive the dividend declared on that day. If a request for redemption is received in proper form by the funds transfer agent or other authorized entity after 5:00 p.m., but by 8:00 p.m., the proceeds of the redemption ordinarily will be transmitted in Federal Funds on the next business day, and the shares will receive the dividend declared on that day.
For all funds, all times are Eastern time.
The processing of redemptions and the delivery of the proceeds may be delayed beyond the same or next business day, depending on the circumstance, for any period (i) during which the New York Stock Exchange is closed (other than on holidays or weekends), or during which trading on the New York Stock Exchange is restricted; (ii) when an emergency exists that makes difficult the disposal of securities owned by a fund or the determination of the fair value of the funds net assets; or (iii) as permitted by order of the Securities and Exchange Commission for the protection of fund shareholders. For these purposes, the Securities and Exchange Commission determines the conditions under which trading shall be deemed to be restricted and an emergency shall be deemed to exist.
Any certificates representing fund shares being sold must be returned with the redemption request.
Before selling recently purchased shares, please note that if the fund has not yet collected payment for the shares being sold, it may delay sending the proceeds for up to eight business days or until it has collected payment.
Account Information 13
ACCOUNT POLICIES (continued)
General policies
Unless the investor declines telephone privileges on the application, the investor may be responsible for any fraudulent telephone order as long as Dreyfus takes reasonable measures to verify the order.
Money market funds generally are used by investors for short-term investments, often in place of bank checking or savings accounts, or for cash management purposes. Investors value the ability to add and withdraw their funds quickly, without restriction. For this reason, although Dreyfus discourages excessive trading and other abusive trading practices, the funds have not adopted policies and procedures, or imposed redemption fees or other restrictions such as minimum holding periods, to deter frequent purchases and redemptions of fund shares. Dreyfus also believes that money market funds, such as the funds, are not targets of abusive trading practices, because money market funds seek to maintain a $1.00 per share price and typically do not fluctuate in value based on market prices. However, frequent purchases and redemptions of a funds shares could increase the funds transaction costs, such as market spreads and custodial fees, and may interfere with the efficient management of the funds portfolio, which could detract from the funds performance.Accordingly, each fund reserves the right to refuse any purchase or exchange request. Funds in the Dreyfus Family of Funds that are not money market mutual funds have approved policies and procedures that are intended to discourage and prevent abusive trading practices in those mutual funds, which may apply to exchanges from or into a fund. If you plan to exchange your fund shares for shares of another Dreyfus fund, please read the prospectus of that other Dreyfus fund for more information.
Each fund reserves the right to:
Each fund also reserves the right to make a redemption in kind payment in portfolio securities rather than cash if the amount being redeemed is deemed by the manager to be large enough to affect fund operations. Investors are urged to call 1-800-242-2224 before effecting any large redemption.
Each fund may also process purchase and sale orders and calculate its NAV on days that the funds primary trading markets are open and the funds management determines to do so.
14
DISTRIBUTIONS AND TAXES
Each fund earns dividends, interest and other income from its investments, and distributes this income (less expenses) to shareholders as dividends. Each fund also realizes capital gains from its investments, and distributes these gains (less any losses) to shareholders as capital gain distributions. Each fund normally pays dividends once a month and capital gain distributions annually. Fund dividends and capital gain distributions will be reinvested in the fund unless the investor instructs the fund otherwise. There are no fees or sales charges on reinvestments.
Distributions paid are subject to federal income tax, and may also be subject to state or local taxes (unless the investor is investing through a tax-advantaged retirement account). For federal tax purposes, in general, certain fund distributions, including distributions of short-term capital gains, are taxable to investors as ordinary income.
F or federal tax purposes, certain distributions, such as distributions of short-term capital gains, are taxable to investors as ordinary income, while long-term capital gains are taxable to investors as capital gains.
Distributions that are federally taxable as ordinary income or capital gains are generally subject to the states personal income taxes. However, because the funds invest principally in U.S. Government securities, some income may not be subject to state income taxes.
The tax status of any distribution generally is the same regardless of how long an investor has been in the fund and whether distributions are reinvested or taken in cash.
An investors sale of shares, including exchanges into other funds, may result in a capital gain or loss for tax purposes.A capital gain or loss on an investment in the fund generally is the difference between the cost of the investors shares and the amount received when the investor sells them.
The tax status of an investors distributions will be detailed in the investors annual tax statement from the fund. Because everyones tax situation is unique, please consult a tax advisor before investing.
Account Information 15
SERVICES FOR FUND INVESTORS
Account statements
Every fund investor automatically receives regular account statements. Each investor also will be sent a yearly statement detailing the tax characteristics of any dividends and distributions the investor has received.
16
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For More Information |
|
Dreyfus Government Cash Management |
A series of Dreyfus Government Cash |
Management Funds |
SEC File Number: 811-3964 |
Dreyfus Government Prime Cash Management |
A series of Dreyfus Government Cash |
Management Funds |
SEC File Number: 811-3964 |
More information on each fund is available free upon request, including the following:
Annual/Semiannual Report
Describes each funds performance, lists its portfolio holdings and contains a letter from the funds manager discussing recent market conditions, economic trends and fund strategies that significantly affected the funds performance during the last fiscal year. Each funds most recent annual and semiannual reports are available at www.dreyfus.com .
Statement of Additional Information (SAI)
Provides more details about each fund and its policies. A current SAI is available at www.dreyfus.com and is on file with the Securities and Exchange Commission (SEC). The SAI is incorporated by reference (is legally considered part of this prospectus).
Portfolio Holdings
Each fund will disclose its complete schedule of portfolio holdings daily as of the end of the previous business day, at www.dreyfus.com , under Mutual Fund Center Dreyfus Mutual Funds Mutual Fund Total Holdings. The information will remain accessible until the fund files a report on Form N-Q or Form N-CSR for the period that includes the date of the posted holdings. A complete description of each funds policies and procedures with respect to the disclosure of the funds portfolio securities is available in the funds SAI.
To Contact Citizens Financial Group, Inc.
By telephone: |
Call your Citizens Representative or 1-800-242-2224. |
By mail: |
CitizensSelect |
875 Elm Street NE0212 |
Manchester, NH 03101 |
Text-only versions of certain fund documents can be viewed online or downloaded from: http://www.sec.gov
You can also obtain copies, after paying a duplicating fee, by visiting the
SECs Public Reference Room in Washington, DC (for information, call 1-202-551-8090) or by E-mail request to publicinfo@sec.gov, or by writing to the SECs Public Reference Section, Washington, DC 20549-0102.
CMGT-P0608INV-CFG
© 2008 MBSC Securities Corporation
Contents
The Funds | ||
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Introduction | 1 | |
Dreyfus Government Cash Management | ||
Goal/Approach | 2 | |
Main Risks | 2 | |
Past Performance | 3 | |
Expenses | 4 | |
Dreyfus Government Prime | ||
Cash Management | ||
Goal/Approach | 5 | |
Main Risks | 5 | |
Past Performance | 6 | |
Expenses | 7 | |
Management | 8 | |
Financial Highlights | 10 | |
Account Information | ||
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Account Policies | 11 | |
Distributions and Taxes | 15 | |
Services for Fund Investors | 16 | |
For More Information | ||
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|
See back cover.
The Funds
INTRODUCTION
Each fund is a money market mutual fund with a separate investment portfolio. The operations and results of one fund are unrelated to those of the other fund.This combined prospectus has been prepared for your convenience so that you can consider two investment choices in one document.
As a money market fund, each fund is subject to maturity, quality and diversification requirements designed to help it maintain a stable share price.
Dreyfus Government Prime Cash Management invests only in U.S. government securities, and Dreyfus Government Cash Management invests only in U.S. government securities and in repurchase agreements.
An investment in a fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.Although each fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a fund.
Concepts to understand
Money market fund: a specific type of fund that seeks to maintain a $1.00 price per share. Money market funds are subject to strict federal requirements and must:
Repurchase agreement: a commercial bank or securities dealer sells securities to a fund and agrees to repurchase them at an agreed-upon date and price. These agreements offer a fund a means of investing money for a short period of time.
The Funds 1
Dreyfus Government Cash Management
GOAL/APPROACH
The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.
To pursue its goal, the fund invests in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities, and repurchase agreements (including tri-party repurchase agreements). The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government.
MAIN RISKS
The funds yield will fluctuate as the short-term securities in its portfolio mature and the proceeds are reinvested in securities with different interest rates.
While the fund has maintained a constant share price since inception, and will continue to try to do so, the following factors could reduce the funds income level and/or share price:
Not all obligations of the U.S. government, its agencies and instrumentalities are backed by the full faith and credit of the U.S. Treasury. Some obligations, such as those issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer.Any guarantee by the U.S. government or its agencies or instrumentalities of a security held by the fund does not apply to the market value of such security or to shares of the fund itself. In addition, because many types of U.S. government securities trade actively outside the United States, their prices may rise and fall as changes in global economic conditions affect the demand for these securities.
2
PAST PERFORMANCE
The bar chart and table below illustrate the risks of investing in the fund. The bar chart shows the changes in the performance of the funds Administrative shares from year to year. The table shows the average annual total returns of the funds Administrative shares over time. All returns assume reinvestment of dividends and distributions. Of course, past performance (before and after taxes) is no guarantee of future results.
Average annual total returns as of 12/31/07 | ||||
1 Year | 5 Years | 10 Years | ||
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4.93% | 2.92% | 3.66% | ||
Clients should call your Citizens Representative or | ||||
1-800-242-2224 for the current yield for Administrative | ||||
shares. Individuals or entities for whom institutions may | ||||
purchase or redeem shares should call the institution | ||||
directly. |
What this fund is and isnt
This fund is a mutual fund: a pooled investment that is professionally managed and gives you the opportunity to participate in financial markets. It strives to reach its stated goal, although as with all mutual funds, it cannot offer guaranteed results.
An investment in this fund is not a bank deposit. It is not insured or guaranteed by the FDIC or any other government agency. It is not a complete investment program. You could lose money in this fund, but you also have the potential to make money.
Dreyfus Government Cash Management 3
DREYFUS GOVERNMENT CASH MANAGEMENT (continued)
EXPENSES
As an investor, you pay certain fees and expenses in connection with the fund, which are described for Administrative shares in the table below. Annual fund operating expenses are paid out of fund assets, so their effect is reflected in the amount of income available for distribution to shareholders.
Fee table | ||||||
Annual fund operating expenses | ||||||
% of average daily net assets | ||||||
Management fees | 0.20% | |||||
Rule 12b-1 fee | 0.10% | |||||
Other expenses | none | |||||
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Total | 0.30% | |||||
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Expense example | ||||||
1 Year | 3 Years | 5 Years | 10 Years | |||
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$31 | $97 | $169 | $381 |
This example shows what you could pay in expenses over time. It uses the same hypothetical conditions other funds use in their prospectuses: $10,000 initial investment, 5% total return each year and no changes in expenses. The figures shown would be the same whether you sold your shares at the end of a period or kept them. Because actual returns and expenses will be different, the example is for comparison only.
Concepts to understand
Management fee: the fee paid to Dreyfus for managing the funds portfolio and assisting in all aspects of the funds operations.
From time to time, Dreyfus may limit expenses to the extent it deems appropriate to enhance the yield of a fund, or a particular class of a fund, during periods when fixed expenses have a significant impact on the yield of a fund, or a particular class of a fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and temporary and may be revised or terminated by Dreyfus at any time without notice.
Rule 12b-1 fee: the fee paid to the funds distributor for distributing Administrative shares, for advertising and marketing related to Administrative shares, and for providing account service and maintenance. Because this fee is paid on an ongoing basis out of fund assets attributable to Administrative shares, over time it will increase the cost of your investment in Administrative shares and could cost you more than paying other types of sales charges.
Other expenses: under an agreement with Dreyfus, in effect since the fund commenced offering Administrative shares, the fund only pays the management fee and the Rule 12b-1 fee. Dreyfus pays all other fund expenses directly. Dreyfus may terminate this agreement upon at least 90 days prior notice to investors, but has committed not to do so at least through May 31, 2009.
4
Dreyfus Government Prime Cash Management
GOAL/APPROACH
The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.
To pursue its goal, the fund only invests in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities. The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government.
While the fund is permitted to invest in the full range of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, the fund currently is managed so that income paid by the fund will be exempt from state and local taxes. Because rules regarding the state and local taxation of dividend income can differ from state to state, investors are urged to consult their tax advisers about the taxation of the funds dividend income in their state and locality.
MAIN RISKS
The funds yield will fluctuate as the short-term securities in its portfolio mature and the proceeds are reinvested in securities with different interest rates.
While the fund has maintained a constant share price since inception, and will continue to try to do so, the following factors could reduce the funds income level and/or share price:
Not all obligations of the U.S. government, its agencies and instrumentalities are backed by the full faith and credit of the U.S. Treasury. Some obligations, such as those issued by the Student Loan Marketing Association and the Federal Home Loan Banks, are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer.Any guarantee by the U.S. government or its agencies or instrumentalities of a security held by the fund does not apply to the market value of such security or to shares of the fund itself. In addition, because many types of U.S. government securities trade actively outside the United States, their prices may rise and fall as changes in global economic conditions affect the demand for these securities.
Dreyfus Government Prime Cash Management 5
DREYFUS GOVERNMENT PRIME CASH MANAGEMENT (continued)
PAST PERFORMANCE
The bar chart and table below illustrate the risks of investing in the fund. The bar chart shows the changes in the performance of the funds Administrative shares from year to year. The table shows the average annual total returns of the funds Administrative shares over time. All returns assume reinvestment of dividends and distributions. Of course, past performance (before and after taxes) is no guarantee of future results.
Average annual total returns as of 12/31/07 | ||||
Since | ||||
inception | ||||
1 Year | 5 Years | (2/27/98) | ||
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4.89% | 2.87% | 3.57% | ||
Clients should call your Citizens Representative or | ||||
1-800-242-2224 for the current yield for Administrative | ||||
shares. Individuals or entities for whom institutions may | ||||
purchase or redeem shares should call the institution | ||||
directly. |
What this fund is and isnt
This fund is a mutual fund: a pooled investment that is professionally managed and gives you the opportunity to participate in financial markets. It strives to reach its stated goal, although as with all mutual funds, it cannot offer guaranteed results.
An investment in this fund is not a bank deposit. It is not insured or guaranteed by the FDIC or any other government agency. It is not a complete investment program. You could lose money in this fund, but you also have the potential to make money.
6
EXPENSES
As an investor, you pay certain fees and expenses in connection with the fund, which are described for Administrative shares in the table below. Annual fund operating expenses are paid out of fund assets, so their effect is reflected in the amount of income available for distribution to shareholders.
Fee table | ||||||
Annual fund operating expenses | ||||||
% of average daily net assets | ||||||
Management fees | 0.20% | |||||
Rule 12b-1 fee | 0.10% | |||||
Other expenses | none | |||||
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Total | 0.30% | |||||
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Expense example | ||||||
1 Year | 3 Years | 5 Years | 10 Years | |||
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$31 | $97 | $169 | $381 |
This example shows what you could pay in expenses over time. It uses the same hypothetical conditions other funds use in their prospectuses: $10,000 initial investment, 5% total return each year and no changes in expenses. The figures shown would be the same whether you sold your shares at the end of a period or kept them. Because actual returns and expenses will be different, the example is for comparison only.
Concepts to understand
Management fee: the fee paid to Dreyfus for managing the funds portfolio and assisting in all aspects of the funds operations.
From time to time, Dreyfus may limit expenses to the extent it deems appropriate to enhance the yield of a fund, or a particular class of a fund, during periods when fixed expenses have a significant impact on the yield of a fund, or a particular class of a fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and temporary and may be revised or terminated by Dreyfus at any time without notice.
Rule 12b-1 fee: the fee paid to the funds distributor for distributing Administrative shares, for advertising and marketing related to Administrative shares, and for providing account service and maintenance. Because this fee is paid on an ongoing basis out of fund assets attributable to Administrative shares, over time it will increase the cost of your investment in Administrative shares and could cost you more than paying other types of sales charges.
Other expenses: under an agreement with Dreyfus, in effect since the fund commenced offering Administrative shares, the fund only pays the management fee and the Rule 12b-1 fee. Dreyfus pays all other fund expenses directly. Dreyfus may terminate this agreement upon at least 90 days prior notice to investors, but has committed not to do so at least through May 31, 2009.
Dreyfus Government Prime Cash Management 7
MANAGEMENT
Investment adviser
The investment adviser for each fund is The Dreyfus Corporation (Dreyfus), 200 Park Avenue, New York, New York 10166. Founded in 1947, Dreyfus manages approximately $315 billion in approximately 170 mutual fund portfolios. For the past fiscal year, each fund paid Dreyfus a management fee at the annual rate of 0.20% of the funds average daily net assets. A discussion regarding the basis for the boards approving each funds management agreement with Dreyfus is available in the funds semiannual report for the six months ended July 31, 2007. Dreyfus is the primary mutual fund business of The Bank of New York Mellon Corporation (BNY Mellon), a global financial services company focused on helping clients move and manage their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing asset and wealth management, asset servicing, issuer services, and treasury services through a worldwide client-focused team. BNY Mellon has more than $23 trillion in assets under custody and administration and $1.1 trillion in assets under management, and it services more than $11 trillion in outstanding debt. Additional information is available at www.bnymellon.com .
The Dreyfus asset management philosophy is based on the belief that discipline and consistency are important to investment success. For each fund, Dreyfus seeks to establish clear guidelines for portfolio management and to be systematic in making decisions.This approach is designed to provide each fund with a distinct, stable identity.
8
Distributor
Each funds distributor is MBSC Securities Corporation (MBSC), a wholly-owned subsidiary of Dreyfus. Dreyfus or MBSC may provide cash payments out of its own resources to financial intermediaries that sell shares of the funds or provide other services. Such payments are separate from any Rule 12b-1 fees paid by the funds to those intermediaries. Because those payments are not made by shareholders or the funds, a funds total expense ratio will not be affected by any such payments. These additional payments may be made to intermediaries, including affiliates, that provide shareholder servicing, sub-administration, recordkeeping and/or sub-transfer agency services, marketing support and/or access to sales meetings, sales representatives and management representatives of the financial intermediary. Cash compensation also may be paid from Dreyfus or MBSCs own resources to intermediaries for inclusion of the funds on a sales list, including a preferred or select sales list or in other sales programs.These payments sometimes are referred to as revenue sharing. From time to time, Dreyfus or MBSC also may provide cash or non-cash compensation to financial intermediaries or their representatives in the form of occasional gifts; occasional meals, tickets or other entertainment; support for due diligence trips; educational conference sponsorship; support for recognition programs; and other forms of cash or non-cash compensation permissible under broker-dealer regulations. In some cases, these payments or compensation may create an incentive for a financial intermediary or its employees to recommend or sell shares of a fund to you. Please contact your financial representative for details about any payments they or their firm may receive in connection with the sale of fund shares or the provision of services to the funds.
Code of ethics
The funds, Dreyfus and MBSC have each adopted a code of ethics that permits its personnel, subject to such code, to invest in securities, including securities that may be purchased or held by the funds. The Dreyfus code of ethics restricts the personal securities transactions of its employees, and requires portfolio managers and other investment personnel to comply with the codes preclearance and disclosure procedures. The primary purpose of the code is to ensure that personal trading by Dreyfus employees does not disadvantage any Dreyfus-managed fund.
Management 9
FINANCIAL HIGHLIGHTS
The following tables describe the performance of each funds Administrative shares for the fiscal periods indicated.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These fig-
ures have been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the funds financial statements, is included in the annual report, which is available upon request.
Year Ended January 31, | ||||||||||||
Dreyfus Government Cash Management | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
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Per-Share Data ($): | ||||||||||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Investment operations: | Investment income net | .047 | .048 | .031 | .012 | .009 | ||||||
Distributions: | Dividends from investment | |||||||||||
income net | (.047) | (.048) | (.031) | (.012) | (.009) | |||||||
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Total Return (%) | 4.83 | 4.88 | 3.12 | 1.16 | .93 | |||||||
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Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses to average net assets | .30 | .30 | .30 | .30 | .30 | |||||||
Ratio of net investment income | ||||||||||||
to average net assets | 4.63 | 4.79 | 3.05 | 1.10 | .93 | |||||||
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Net assets, end of period ($ in millions) | 693 | 320 | 240 | 313 | 900 | |||||||
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Year Ended January 31, | ||||||||||||
Dreyfus Government Prime Cash Management | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
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Per-Share Data ($): | ||||||||||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Investment operations: | Investment income net | .047 | .047 | .030 | .011 | .008 | ||||||
Distributions: | Dividends from investment | |||||||||||
income net | (.047) | (.047) | (.030) | (.011) | (.008) | |||||||
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Total Return (%) | 4.80 | 4.85 | 3.08 | 1.11 | .84 | |||||||
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Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses to average net assets | .30 | .30 | .30 | .30 | .30 | |||||||
Ratio of net investment income | ||||||||||||
to average net assets | 4.57 | 4.76 | 3.11 | 1.09 | .81 | |||||||
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Net assets, end of period ($ in millions) | 307 | 314 | 210 | 200 | 130 |
10
Account Information
ACCOUNT POLICIES
Each fund is designed for institutional investors, particularly banks, acting for themselves or in a fiduciary, advisory, agency, custodial or similar capacity. Generally, each investor will be required to open a single master account with the fund for all purposes. In certain cases, the fund may request investors to maintain separate master accounts for shares held by the investor (i) for its own account, for the account of other institutions and for accounts for which the institution acts as a fiduciary, and (ii) for accounts for which the investor acts in some other capacity. An institution may arrange with the funds transfer agent for sub-accounting services and will be charged directly for the cost of such services. Institutions purchasing Administrative shares for the benefit of their clients may impose policies, limitations and fees which are different from those described in this prospectus.
Buying shares
The price for fund shares is the funds net asset value per share (NAV), which is generally calculated at 12:00 noon, 5:00 p.m., and 8:00 p.m. on days the New York Stock Exchange is open for regular business. An order will be priced at the next NAV calculated after the order is received in proper form by the funds transfer agent or other authorized entity. Each funds investments are valued based on amortized cost. As a result, portfolio securities are valued at their acquisition cost, adjusted for discounts or premiums reflected in their purchase price. This method of valuation is designed to enable the fund to price its shares at $1.00 per share.
As to Dreyfus Government Cash Management, orders in proper form placed prior to 12:00 noon or 5:00 p.m., and payments for which are received in or converted into Federal Funds by the funds custodian by 6:00 p.m., will become effective at the price determined at 12:00 noon or 5:00 p.m., respectively, on that day. In either case, shares purchased will receive the dividend declared on that day.
As to Dreyfus Government Prime Cash Management, orders in proper form placed prior to 12:00 noon or 3:00 p.m., and payments for which are received in or converted into Federal Funds by the funds custodian by 6:00 p.m., will become effective at the price determined at 12:00 noon or 5:00 p.m., respectively, on that day. In either case, shares purchased will receive the dividend declared on that day. Orders for shares placed between 3:00 p.m and 5:00 p.m. will not be accepted and executed, and notice of the purchase order being rejected will be given to the institution placing the order, and any funds received will be returned promptly to the sending institution.
Account Information 11
ACCOUNT POLICIES (continued)
As to each fund, orders effected through compatible computer facilities after 5:00 p.m., but by 8:00 p.m., will become effective at the price determined at 8:00 p.m. on that day, if Federal Funds are received by the funds custodian by 11:00 a.m. on the following business day. In this case, shares purchased will start earning dividends on the business day following the date the order became effective. Orders effected between 5:00 p.m. and 8:00 p.m., by a means other than a compatible computer facility (and otherwise in proper form), will become effective on the following business day.
All times are Eastern time.
Minimum investments | ||
Initial | Additional | |
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Administrative shares $10,000,000 * | none | |
* The minimum initial investment in Administrative shares | ||
is $10,000,000, unless: (a) the investor has invested at | ||
least $10,000,000 in the aggregate among any Dreyfus | ||
Cash Management fund, Dreyfus Institutional Cash | ||
Advantage Fund and Dreyfus Institutional Cash | ||
Advantage Plus Fund (including in any class of a fund); | ||
or (b) the investor has, in the opinion of Dreyfus | ||
Investments Division, adequate intent and availability of | ||
assets to reach a future level of investment of | ||
$10,000,000 among the funds named above. |
Concepts to understand
Net asset value (NAV): a mutual funds share price on a given day. A funds NAV is calculated by dividing the value of its net assets by the number of its existing shares outstanding.
When calculating its NAV, a fund compares the NAV using amortized cost to its NAV using available market quotations or market equivalents which generally are provided by an independent pricing service approved by the funds board. The pricing services procedures are reviewed under the general supervision of the board.
Amortized cost: the value of a funds portfolio securities, which does not take into account unrealized gains or losses. As a result, portfolio securities are valued at their acquisition cost, adjusted over time based on the discounts or premiums reflected in their purchase price. Each fund uses this valuation method pursuant to Rule 2a-7 under the 1940 Act in order to be able to price its shares at $1.00 per share. In accordance with Rule 2a-7, each fund is subject to certain maturity, quality and diversification requirements to help it maintain the $1.00 share price.
12
Selling shares
Investors may sell (redeem) shares at any time by wire, telephone, or compatible computer facility. Shares will be sold at the next determined NAV.
If a redemption request is received in proper form by the funds transfer agent or other authorized entity by 5:00 p.m., the proceeds of the redemption, if transfer by wire is requested, ordinarily will be transmitted in Federal Funds on the same day, and the shares will not receive the dividend declared on that day. If a request for redemption is received in proper form by the funds transfer agent or other authorized entity after 5:00 p.m., but by 8:00 p.m., the proceeds of the redemption ordinarily will be transmitted in Federal Funds on the next business day, and the shares will receive the dividend declared on that day.
All times are Eastern time.
The processing of redemptions and the delivery of the proceeds may be delayed beyond the same or next business day, depending on the circumstance, for any period (i) during which the New York Stock Exchange is closed (other than on holidays or weekends), or during which trading on the New York Stock Exchange is restricted; (ii) when an emergency exists that makes difficult the disposal of securities owned by a fund or the determination of the fair value of the funds net assets; or (iii) as permitted by order of the Securities and Exchange Commission for the protection of fund shareholders. For these purposes, the Securities and Exchange Commission determines the conditions under which trading shall be deemed to be restricted and an emergency shall be deemed to exist.Any certificates representing fund shares being sold must be returned with the redemption request.
Before selling recently purchased shares, please note that if the fund has not yet collected payment for the shares being sold, it may delay sending the proceeds for up to eight business days or until it has collected payment.
Account Information 13
ACCOUNT POLICIES (continued)
General policies
Unless the investor declines telephone privileges on the application, the investor may be responsible for any fraudulent telephone order as long as Dreyfus takes reasonable measures to verify the order.
Money market funds generally are used by investors for short-term investments, often in place of bank checking or savings accounts, or for cash management purposes. Investors value the ability to add and withdraw their funds quickly, without restriction. For this reason, although Dreyfus discourages excessive trading and other abusive trading practices, the funds have not adopted policies and procedures, or imposed redemption fees or other restrictions such as minimum holding periods, to deter frequent purchases and redemptions of fund shares. Dreyfus also believes that money market funds, such as the funds, are not targets of abusive trading practices, because money market funds seek to maintain a $1.00 per share price and typically do not fluctuate in value based on market prices. However, frequent purchases and redemptions of a funds shares could increase the funds transaction costs, such as market spreads and custodial fees, and may interfere with the efficient management of the funds portfolio, which could detract from the funds performance.Accordingly, each fund reserves the right to refuse any purchase or exchange request. Funds in the Dreyfus Family of Funds that are not money market mutual funds have approved policies and procedures that are intended to discourage and prevent abusive trading practices in those mutual funds, which may apply to exchanges from or into a fund. If you plan to exchange your fund shares for shares of another Dreyfus fund, please read the prospectus of that other Dreyfus fund for more information.
Each fund reserves the right to:
Each fund also reserves the right to make a redemption in kind payment in portfolio securities rather than cash if the amount being redeemed is deemed by the manager to be large enough to affect fund operations. Investors are urged to call 1-800-242-2224 before effecting any large transaction.
Each fund may also process purchase and sale orders and calculate its NAV on days that the funds primary trading markets are open and the funds management determines to do so.
14
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DISTRIBUTIONS AND TAXES
Each fund earns dividends, interest and other income from its investments, and distributes this income (less expenses) to shareholders as dividends. Each fund also realizes capital gains from its investments, and distributes these gains (less any losses) to shareholders as capital gain distributions. Each fund normally pays dividends once a month and capital gain distributions annually. Fund dividends and capital gain distributions will be reinvested in the fund unless the investor instructs the fund otherwise. There are no fees or sales charges on reinvestments.
Distributions paid are subject to federal income tax, and may also be subject to state or local taxes (unless the investor is investing through a tax-advantaged retirement account). For federal tax purposes, in general, certain fund distributions, including distributions of short-term capital gains, are taxable to investors as ordinary income.
For federal tax purposes, certain distributions, such as distributions of short-term capital gains, are taxable to investors as ordinary income, while long-term capital gains are taxable to investors as capital gains.
Distributions that are federally taxable as ordinary income or capital gains are generally subject to the states personal income taxes. However, because the funds invest principally in U.S. Government securities, some income may not be subject to state income taxes.
The tax status of any distribution generally is the same regardless of how long an investor has been in the fund and whether distributions are reinvested or taken in cash.
An investors sale of shares, including exchanges into other funds, may result in a capital gain or loss for tax purposes.A capital gain or loss on an investment in the fund generally is the difference between the cost of the investors shares and the amount received when the investor sells them.
The tax status of an investors distributions will be detailed in the investors annual tax statement from the fund. Because everyones tax situation is unique, please consult a tax advisor before investing.
Account Information 15
SERVICES FOR FUND INVESTORS
Account statements
Every fund investor automatically receives regular account statements. Each investor also will be sent a yearly statement detailing the tax characteristics of any dividends and distributions the investor has received.
16
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Contents
The Funds | ||
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Introduction | 1 | |
Dreyfus Government Cash Management | ||
Goal/Approach | 2 | |
Main Risks | 2 | |
Past Performance | 3 | |
Expenses | 4 | |
Dreyfus Government Prime | ||
Cash Management | ||
Goal/Approach | 5 | |
Main Risks | 5 | |
Past Performance | 6 | |
Expenses | 7 | |
Management | 8 | |
Financial Highlights | 10 | |
Account Information | ||
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Account Policies | 11 | |
Distributions and Taxes | 15 | |
Services for Fund Investors | 16 | |
For More Information | ||
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See back cover.
The Funds
INTRODUCTION
Each fund is a money market mutual fund with a separate investment portfolio. The operations and results of one fund are unrelated to those of the other fund.This combined prospectus has been prepared for your convenience so that you can consider two investment choices in one document.
As a money market fund, each fund is subject to maturity, quality and diversification requirements designed to help it maintain a stable share price.
Dreyfus Government Prime Cash Management invests only in U.S. government securities, Dreyfus Government Cash Management invests only in U.S. government securities and in repurchase agreements.
An investment in a fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.Although each fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a fund.
Concepts to understand
Money market fund: a specific type of fund that seeks to maintain a $1.00 price per share. Money market funds are subject to strict federal requirements and must:
Repurchase agreement: a commercial bank or securities dealer sells securities to a fund and agrees to repurchase them at an agreed-upon date and price. These agreements offer a fund a means of investing money for a short period of time.
The Funds 1
Dreyfus Government Cash Management
GOAL/APPROACH
The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.
To pursue its goal, the fund invests in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities, and repurchase agreements (including tri-party repurchase agreements). The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government.
MAIN RISKS
The funds yield will fluctuate as the short-term securities in its portfolio mature and the proceeds are reinvested in securities with different interest rates.
While the fund has maintained a constant share price since inception, and will continue to try to do so, the following factors could reduce the funds income level and/or share price:
Not all obligations of the U.S. government, its agencies and instrumentalities are backed by the full faith and credit of the U.S. Treasury. Some obligations, such as those issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer.Any guarantee by the U.S. government or its agencies or instrumentalities of a security held by the fund does not apply to the market value of such security or to shares of the fund itself. In addition, because many types of U.S. government securities trade actively outside the United States, their prices may rise and fall as changes in global economic conditions affect the demand for these securities.
2
PAST PERFORMANCE
The bar chart and table below illustrate the risks of investing in the fund. The bar chart shows the changes in the performance of the funds Participant shares from year to year.The table shows the average annual total returns of the funds Participant shares over time.All returns assume reinvestment of dividends and distributions. Of course, past performance (before and after taxes) is no guarantee of future results.
Year-by-year total returns as of 12/31 each year (%)
Best Quarter: | Q3 00 | +1.52% | ||
Worst Quarter: | Q2 04 | +0.12% |
The year-to-date total return of the funds Participant shares as of |
3/31/08 was 0.78%. |
Average annual total returns as of 12/31/07
1 Year | 5 Years | 10 Years | ||
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4.61% | 2.61% | 3.35% |
Clients should call your Citizens Representative or 1-800-242-2224 for the current yield for Participant shares. Individuals or entities for whom institutions may purchase or redeem shares should call the institution directly.
What this fund is and isnt
This fund is a mutual fund: a pooled investment that is professionally managed and gives you the opportunity to participate in financial markets. It strives to reach its stated goal, although as with all mutual funds, it cannot offer guaranteed results.
An investment in this fund is not a bank deposit. It is not insured or guaranteed by the FDIC or any other government agency. It is not a complete investment program. You could lose money in this fund, but you also have the potential to make money.
Dreyfus Government Cash Management 3
DREYFUS GOVERNMENT CASH MANAGEMENT (continued)
EXPENSES
As an investor, you pay certain fees and expenses in connection with the fund, which are described for Participant shares in the table below. Annual fund operating expenses are paid out of fund assets, so their effect is reflected in the amount of income available for distribution to shareholders.
Fee table | ||
Annual fund operating expenses | ||
% of average daily net assets | ||
Management fees | 0.20% | |
Rule 12b-1 fee | 0.40% | |
Other expenses | none | |
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Total | 0.60% |
Expense example | ||||||
1 Year | 3 Years | 5 Years | 10 Years | |||
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$61 | $192 | $335 | $750 |
This example shows what you could pay in expenses over time. It uses the same hypothetical conditions other funds use in their prospectuses: $10,000 initial investment, 5% total return each year and no changes in expenses. The figures shown would be the same whether you sold your shares at the end of a period or kept them. Because actual returns and expenses will be different, the example is for comparison only.
Concepts to understand
Management fee: the fee paid to Dreyfus for managing the funds portfolio and assisting in all aspects of the funds operations.
From time to time, Dreyfus may limit expenses to the extent it deems appropriate to enhance the yield of a fund, or a particular class of a fund, during periods when fixed expenses have a significant impact on the yield of a fund, or a particular class of a fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and temporary and may be revised or terminated by Dreyfus at any time without notice.
Rule 12b-1 fee: the fee paid to the funds distributor for distributing Participant shares, for advertising and marketing related to Participant shares, and for providing account service and maintenance. Because this fee is paid on an ongoing basis out of fund assets attributable to Participant shares, over time it will increase the cost of your investment in Participant shares and could cost you more than paying other types of sales charges.
Other expenses: under an agreement with Dreyfus, in effect since the fund commenced offering Participant shares, the fund only pays the management fee and the Rule 12b-1 fee. Dreyfus pays all other fund expenses directly. Dreyfus may terminate this agreement at any time upon at least 90 days prior notice to investors, but has committed not to do so at least through May 31, 2009.
4
Dreyfus Government Prime Cash Management
GOAL/APPROACH
The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.
To pursue its goal, the fund only invests in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities. The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government.
While the fund is permitted to invest in the full range of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, the fund currently is managed so that income paid by the fund will be exempt from state and local taxes. Because rules regarding the state and local taxation of dividend income can differ from state to state, investors are urged to consult their tax advisers about the taxation of the funds dividend income in their state and locality.
MAIN RISKS
The funds yield will fluctuate as the short-term securities in its portfolio mature and the proceeds are reinvested in securities with different interest rates.
While the fund has maintained a constant share price since inception, and will continue to try to do so, the following factors could reduce the funds income level and/or share price:
Not all obligations of the U.S. government, its agencies and instrumentalities are backed by the full faith and credit of the U.S. Treasury. Some obligations, such as those issued by the Student Loan Marketing Association and the Federal Home Loan Banks, are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer.Any guarantee by the U.S. government or its agencies or instrumentalities of a security held by the fund does not apply to the market value of such security or to shares of the fund itself. In addition, because many types of U.S. government securities trade actively outside the United States, their prices may rise and fall as changes in global economic conditions affect the demand for these securities.
Dreyfus Government Prime Cash Management 5
DREYFUS GOVERNMENT PRIME CASH MANAGEMENT (continued)
PAST PERFORMANCE
The bar chart and table below illustrate the risks of investing in the fund. The bar chart shows the changes in the performance of the funds Participant shares from year to year.The table shows the average annual total returns of the funds Participant shares over time.All returns assume reinvestment of dividends and distributions. Of course, past performance (before and after taxes) is no guarantee of future results.
Year-by-year total returns as of 12/31 each year (%)
Best Quarter: | Q3 00 | +1.51% | ||
Worst Quarter: | Q2 04 | +0.11% |
The year-to-date total return of the funds Participant shares as of |
3/31/08 was 0.74%. |
Average annual total returns as of 12/31/07
Since | ||||
inception | ||||
1 Year | 5 Years | (2/27/98) | ||
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4.58% | 2.56% | 3.26% |
Clients should call your Citizens Representative or 1-800-242-2224 for the current yield for Participant shares. Individuals or entities for whom institutions may purchase or redeem shares should call the institution directly.
What this fund is and isnt
This fund is a mutual fund: a pooled investment that is professionally managed and gives you the opportunity to participate in financial markets. It strives to reach its stated goal, although as with all mutual funds, it cannot offer guaranteed results.
An investment in this fund is not a bank deposit. It is not insured or guaranteed by the FDIC or any other government agency. It is not a complete investment program. You could lose money in this fund, but you also have the potential to make money.
6
EXPENSES
As an investor, you pay certain fees and expenses in connection with the fund, which are described for Participant shares in the table below. Annual fund operating expenses are paid out of fund assets, so their effect is reflected in the amount of income available for distribution to shareholders.
Fee table | ||
Annual fund operating expenses | ||
% of average daily net assets | ||
Management fees | 0.20% | |
Rule 12b-1 fee | 0.40% | |
Other expenses | none | |
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Total | 0.60% |
Expense example | ||||||
1 Year | 3 Years | 5 Years | 10 Years | |||
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$61 | $192 | $335 | $750 |
This example shows what you could pay in expenses over time. It uses the same hypothetical conditions other funds use in their prospectuses: $10,000 initial investment, 5% total return each year and no changes in expenses. The figures shown would be the same whether you sold your shares at the end of a period or kept them. Because actual returns and expenses will be different, the example is for comparison only.
Concepts to understand
Management fee: the fee paid to Dreyfus for managing the funds portfolio and assisting in all aspects of the funds operations.
From time to time, Dreyfus may limit expenses to the extent it deems appropriate to enhance the yield of a fund, or a particular class of a fund, during periods when fixed expenses have a significant impact on the yield of a fund, or a particular class of a fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and temporary and may be revised or terminated by Dreyfus at any time without notice.
Rule 12b-1 fee: the fee paid to the funds distributor for distributing Participant shares, for advertising and marketing related to Participant shares, and for providing account service and maintenance. Because this fee is paid on an ongoing basis out of fund assets attributable to Participant shares, over time it will increase the cost of your investment in Participant shares and could cost you more than paying other types of sales charges.
Other expenses: under an agreement with Dreyfus, in effect since the fund commenced offering Participant shares, the fund only pays the management fee and the Rule 12b-1 fee. Dreyfus pays all other fund expenses directly. Dreyfus may terminate this agreement at any time upon at least 90 days prior notice to investors, but has committed not to do so at least through May 31, 2009.
Dreyfus Government Prime Cash Management 7
MANAGEMENT
Investment adviser
The investment adviser for each fund is The Dreyfus Corporation (Dreyfus), 200 Park Avenue, New York, New York 10166. Founded in 1947, Dreyfus manages approximately $315 billion in approximately 170 mutual fund portfolios. For the past fiscal year, each fund paid Dreyfus a management fee at the annual rate of 0.20% of the funds average daily net assets. A discussion regarding the basis for the boards approving each funds management agreement with Dreyfus is available in the funds semiannual report for the six months ended July 31, 2007. Dreyfus is the primary mutual fund business of The Bank of New York Mellon Corporation (BNY Mellon), a global financial services company focused on helping clients move and manage their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing asset and wealth management, asset servicing, issuer services, and treasury services through a worldwide client-focused team. BNY Mellon has more than $23 trillion in assets under custody and administration and $1.1 trillion in assets under management, and it services more than $11 trillion in outstanding debt. Additional information is available at www.bnymellon.com .
The Dreyfus asset management philosophy is based on the belief that discipline and consistency are important to investment success. For each fund, Dreyfus seeks to establish clear guidelines for portfolio management and to be systematic in making decisions.This approach is designed to provide each fund with a distinct, stable identity.
8
Distributor
Each funds distributor is MBSC Securities Corporation (MBSC), a wholly-owned subsidiary of Dreyfus. Dreyfus or MBSC may provide cash payments out of its own resources to financial intermediaries that sell shares of the funds or provide other services. Such payments are separate from any Rule 12b-1 fees paid by the funds to those intermediaries. Because those payments are not made by shareholders or the funds, a funds total expense ratio will not be affected by any such payments. These additional payments may be made to intermediaries, including affiliates, that provide shareholder servicing, sub-administration, recordkeeping and/or sub-transfer agency services, marketing support and/or access to sales meetings, sales representatives and management representatives of the financial intermediary. Cash compensation also may be paid from Dreyfus or MBSCs own resources to intermediaries for inclusion of the funds on a sales list, including a preferred or select sales list or in other sales programs.These payments sometimes are referred to as revenue sharing. From time to time, Dreyfus or MBSC also may provide cash or non-cash compensation to financial intermediaries or their representatives in the form of occasional gifts; occasional meals, tickets or other entertainment; support for due diligence trips; educational conference sponsorship; support for recognition programs; and other forms of cash or non-cash compensation permissible under broker-dealer regulations. In some cases, these payments or compensation may create an incentive for a financial intermediary or its employees to recommend or sell shares of a fund to you. Please contact your financial representative for details about any payments they or their firm may receive in connection with the sale of fund shares or the provision of services to the funds.
Code of ethics
The funds, Dreyfus and MBSC have each adopted a code of ethics that permits its personnel, subject to such code, to invest in securities, including securities that may be purchased or held by the funds. The Dreyfus code of ethics restricts the personal securities transactions of its employees, and requires portfolio managers and other investment personnel to comply with the codes preclearance and disclosure procedures. The primary purpose of the code is to ensure that personal trading by Dreyfus employees does not disadvantage any Dreyfus-managed fund.
Management 9
FINANCIAL HIGHLIGHTS
The following tables describe the performance of each funds Participant shares for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the funds financial statements, is included in the annual report, which is available upon request.
Year Ended January 31, | ||||||||||||
Dreyfus Government Cash Management | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
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Per-Share Data ($): | ||||||||||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Investment operations: | Investment income net | .044 | .045 | .028 | .009 | .006 | ||||||
Distributions: | Dividends from investment | |||||||||||
income net | (.044) | (.045) | (.028) | (.009) | (.006) | |||||||
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Total Return (%) | 4.51 | 4.57 | 2.81 | .86 | .62 | |||||||
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Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses to average net assets | .60 | .60 | .60 | .60 | .60 | |||||||
Ratio of net investment income | ||||||||||||
to average net assets | 4.33 | 4.49 | 2.75 | .80 | .63 | |||||||
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Net assets, end of period ($ in millions) | 445 | 196 | 244 | 289 | 607 |
Year Ended January 31, | ||||||||||||
Dreyfus Government Prime Cash Management | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
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Per-Share Data ($): | ||||||||||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Investment operations: | Investment income net | .044 | .044 | .027 | .008 | .005 | ||||||
Distributions: | Dividends from investment | |||||||||||
income net | (.044) | (.044) | (.027) | (.008) | (.005) | |||||||
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||
Total Return (%) | 4.49 | 4.53 | 2.77 | .81 | .54 | |||||||
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Ratios/Supplemental Data (%): | ||||||||||||
Ratio of expenses to average net assets | .60 | .60 | .60 | .60 | .60 | |||||||
Ratio of net investment income | ||||||||||||
to average net assets | 4.27 | 4.46 | 2.81 | .79 | .51 | |||||||
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Net assets, end of period ($ in millions) | 711 | 341 | 208 | 230 | 229 |
10
Account Information
ACCOUNT POLICIES
Each fund is designed for institutional investors, particularly banks, acting for themselves or in a fiduciary, advisory, agency, custodial or similar capacity. Generally, each investor will be required to open a single master account with the fund for all purposes. In certain cases, the fund may request investors to maintain separate master accounts for shares held by the investor (i) for its own account, for the account of other institutions and for accounts for which the institution acts as a fiduciary, and (ii) for accounts for which the investor acts in some other capacity. An institution may arrange with the funds transfer agent for sub-accounting services and will be charged directly for the cost of such services. Institutions purchasing Participant shares for the benefit of their clients may impose policies, limitations and fees which are different from those described in this prospectus.
Buying shares
The price for fund shares is the funds net asset value per share (NAV), which is generally calculated at 12:00 noon, 5:00 p.m. and 8:00 p.m. on days the New York Stock Exchange is open for regular business. An order will be priced at the next NAV calculated after the order is received in proper form by the funds transfer agent or other authorized entity. Each funds investments are valued based on amortized cost. As a result, portfolio securities are valued at their acquisition cost, adjusted for discounts or premiums reflected in their purchase price. This method of valuation is designed to enable the fund to price its shares at $1.00 per share.
As to Dreyfus Government Cash Management, orders in proper form placed prior to 12:00 noon or 5:00 p.m., and payments for which are received in or converted into Federal Funds by the funds custodian by 6:00 p.m., will become effective at the price determined at 12:00 noon or 5:00 p.m., respectively, on that day. In either case, shares purchased will receive the dividend declared on that day.
As to Dreyfus Government Prime Cash Management, orders in proper form placed prior to 12:00 noon or 3:00 p.m., and payments for which are received in or converted into Federal Funds by the funds custodian by 6:00 p.m., will become effective at the price determined at 12:00 noon or 5:00 p.m., respectively, on that day. In either case, shares purchased will receive the dividend declared on that day. Orders for shares placed between 3:00 p.m and 5:00 p.m. will not be accepted and executed, and notice of the purchase order being rejected will be given to the institution placing the order, and any funds received will be returned promptly to the sending institution.
Account Information 11
ACCOUNT POLICIES (continued)
As to each fund, orders effected through compatible computer facilities after 5:00 p.m., but by 8:00 p.m., will become effective at the price determined at 8:00 p.m. on that day, if Federal Funds are received by the funds custodian by 11:00 a.m. on the following business day. In this case, shares purchased will start earning dividends on the business day following the date the order became effective. Orders effected between 5:00 p.m. and 8:00 p.m., by a means other than a compatible computer facility (and otherwise in proper form), will become effective on the following business day.
All times are Eastern time.
Minimum investments | ||||
Initial | Additional | |||
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Participant shares | $10,000,000 * | none |
* The minimum initial investment in Participant shares is |
$10,000,000, unless: (a) the investor has invested at |
least $10,000,000 in the aggregate among any Dreyfus |
Cash Management fund, Dreyfus Institutional Cash |
Advantage Fund and Dreyfus Institutional Cash |
Advantage Plus Fund (including in any class of a fund); |
or (b) the investor has, in the opinion of Dreyfus |
Investments Division, adequate intent and availability of |
assets to reach a future level of investment of |
$10,000,000 among the funds named above. |
Concepts to understand
Net asset value (NAV): a mutual funds share price on a given day. A funds NAV is calculated by dividing the value of its net assets by the number of its existing shares outstanding.
When calculating its NAV, a fund compares the NAV using amortized cost to its NAV using available market quotations or market equivalents which generally are provided by an independent pricing service approved by the funds board. The pricing services procedures are reviewed under the general supervision of the board.
Amortized cost: the value of a funds portfolio securities, which does not take into account unrealized gains or losses. As a result, portfolio securities are valued at their acquisition cost, adjusted over time based on the discounts or premiums reflected in their purchase price. Each fund uses this valuation method pursuant to Rule 2a-7 under the 1940 Act in order to be able to price its shares at $1.00 per share. In accordance with Rule 2a-7, each fund is subject to certain maturity, quality, and diversification requirements to help it maintain the $1.00 share price.
12
Selling shares
Investors may sell (redeem) shares at any time by wire, telephone, or compatible computer facility. Shares will be sold at the next determined NAV.
If a redemption request is received in proper form by the funds transfer agent or other authorized entity by 5:00 p.m., the proceeds of the redemption, if transfer by wire is requested, ordinarily will be transmitted in Federal Funds on the same day, and the shares will not receive the dividend declared on that day. If a request for redemption is received in proper form by the funds transfer agent or other authorized entity after 5:00 p.m., but by 8:00 p.m., the proceeds of the redemption ordinarily will be transmitted in Federal Funds on the next business day, and the shares will receive the dividend declared on that day.
All times are Eastern time.
The processing of redemptions and the delivery of the proceeds may be delayed beyond the same or next business day, depending on the circumstance, for any period (i) during which the New York Stock Exchange is closed (other than on holidays or weekends), or during which trading on the New York Stock Exchange is restricted; (ii) when an emergency exists that makes difficult the disposal of securities owned by a fund or the determination of the fair value of the funds net assets; or (iii) as permitted by order of the Securities and Exchange Commission for the protection of fund shareholders. For these purposes, the Securities and Exchange Commission determines the conditions under which trading shall be deemed to be restricted and an emergency shall be deemed to exist.Any certificates representing fund shares being sold must be returned with the redemption request.
Before selling recently purchased shares, please note that if the fund has not yet collected payment for the shares being sold, it may delay sending the proceeds for up to eight business days or until it has collected payment.
Account Information 13
ACCOUNT POLICIES (continued)
General policies
Unless the investor declines telephone privileges on the application, the investor may be responsible for any fraudulent telephone order as long as Dreyfus takes reasonable measures to verify the order.
Money market funds generally are used by investors for short-term investments, often in place of bank checking or savings accounts, or for cash management purposes. Investors value the ability to add and withdraw their funds quickly, without restriction. For this reason, although Dreyfus discourages excessive trading and other abusive trading practices, the funds have not adopted policies and procedures, or imposed redemption fees or other restrictions such as minimum holding periods, to deter frequent purchases and redemptions of fund shares. Dreyfus also believes that money market funds, such as the funds, are not targets of abusive trading practices, because money market funds seek to maintain a $1.00 per share price and typically do not fluctuate in value based on market prices. However, frequent purchases and redemptions of a funds shares could increase the funds transaction costs, such as market spreads and custodial fees, and may interfere with the efficient management of the funds portfolio, which could detract from the funds performance.Accordingly, each fund reserves the right to refuse any purchase or exchange request. Funds in the Dreyfus Family of Funds that are not money market mutual funds have approved policies and procedures that are intended to discourage and prevent abusive trading practices in those mutual funds, which may apply to exchanges from or into a fund. If you plan to exchange your fund shares for shares of another Dreyfus fund, please read the prospectus of that other Dreyfus fund for more information.
Each fund reserves the right to:
Each fund also reserves the right to make a redemption in kind payment in portfolio securities rather than cash if the amount being redeemed is deemed by the manager to be large enough to affect fund operations. Investors are urged to call 1-800-242-2224 before effecting any large redemption.
Each fund may also process purchase and sale orders and calculate its NAV on days that the funds primary trading markets are open and the funds management determines to do so.
14
DISTRIBUTIONS AND TAXES
Each fund earns dividends, interest and other income from its investments, and distributes this income (less expenses) to shareholders as dividends. Each fund also realizes capital gains from its investments, and distributes these gains (less any losses) to shareholders as capital gain distributions. Each fund normally pays dividends once a month and capital gain distributions annually. Fund dividends and capital gain distributions will be reinvested in the fund unless the investor instructs the fund otherwise. There are no fees or sales charges on reinvestments.
Distributions paid are subject to federal income tax, and may also be subject to state or local taxes (unless the investor is investing through a tax-advantaged retirement account). For federal tax purposes, in general, certain fund distributions, including distributions of short-term capital gains, are taxable to investors as ordinary income.
F or federal tax purposes, certain distributions, such as distributions of short-term capital gains, are taxable to investors as ordinary income, while long-term capital gains are taxable to investors as capital gains.
Distributions that are federally taxable as ordinary income or capital gains are generally subject to the states personal income taxes. However, because the funds invest principally in U.S. Government securities, some income may not be subject to state income taxes.
The tax status of any distribution generally is the same regardless of how long an investor has been in the fund and whether distributions are reinvested or taken in cash.
An investors sale of shares, including exchanges into other funds, may result in a capital gain or loss for tax purposes.A capital gain or loss on an investment in the fund generally is the difference between the cost of the investors shares and the amount received when the investor sells them.
The tax status of an investors distributions will be detailed in the investors annual tax statement from the fund. Because everyones tax situation is unique, please consult a tax advisor before investing.
Account Information 15
SERVICES FOR FUND INVESTORS
Account statements
Every fund investor automatically receives regular account statements. Each investor also will be sent a yearly statement detailing the tax characteristics of any dividends and distributions the investor has received.
16
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For More Information
Dreyfus Government Cash Management |
A series of Dreyfus Government Cash |
Management Funds |
SEC File Number: 811-3964 |
Dreyfus Government Prime Cash Management |
A series of Dreyfus Government Cash |
Management Funds |
SEC File Number: 811-3964 |
More information on each fund is available free upon request, including the following:
Annual/Semiannual Report
Describes each funds performance, lists its portfolio holdings and contains a letter from the funds manager discussing recent market conditions, economic trends and fund strategies that significantly affected the funds performance during the last fiscal year. Each funds most recent annual and semiannual reports are available at www.dreyfus.com .
Statement of Additional Information (SAI)
Provides more details about each fund and its policies. A current SAI is available at www.dreyfus.com and is on file with the Securities and Exchange Commission (SEC). The SAI is incorporated by reference (is legally considered part of this prospectus).
Portfolio Holdings
Each fund will disclose its complete schedule of portfolio holdings daily as of the end of the previous business day, at www.dreyfus.com , under Mutual Fund Center Dreyfus Mutual Funds Mutual Fund Total Holdings. The information will remain accessible until the fund files a report on Form N-Q or Form N-CSR for the period that includes the date of the posted holdings. A complete description of each funds policies and procedures with respect to the disclosure of the funds portfolio securities is available in the funds SAI.
To Contact Citizens Financial Group, Inc.
By telephone: |
Call your Citizens Representative or 1-800-242-2224. |
By mail: |
CitizensSelect |
875 Elm Street NE0212 |
Manchester, NH 03101 |
Text-only versions of certain fund documents can be viewed online or downloaded from: http://www.sec.gov
You can also obtain copies, after paying a duplicating fee, by visiting the
SECs Public Reference Room in Washington, DC (for information, call 1-202-551-8090) or by E-mail request to publicinfo@sec.gov, or by writing to the SECs Public Reference Section, Washington, DC 20549-0102.
CMGT-P0608PAR-CFG
© 2008 MBSC Securities Corporation
Contents
The Funds | ||
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Introduction | 1 | |
Dreyfus Government Cash Management | ||
Goal/Approach | 2 | |
Main Risks | 2 | |
Past Performance | 3 | |
Expenses | 4 | |
Dreyfus Government Prime | ||
Cash Management | ||
Goal/Approach | 5 | |
Main Risks | 5 | |
Past Performance | 6 | |
Expenses | 7 | |
Management | 8 | |
Financial Highlights | 10 | |
Account Information | ||
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Account Policies | 11 | |
Distributions and Taxes | 15 | |
Services for Fund Investors | 16 | |
For More Information | ||
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|
See back cover.
The Funds
INTRODUCTION
Each fund is a money market mutual fund with a separate investment portfolio. The operations and results of one fund are unrelated to those of the other fund.This combined prospectus has been prepared for your convenience so that you can consider two investment choices in one document.
As a money market fund, each fund is subject to maturity, quality and diversification requirements designed to help it maintain a stable share price.
Dreyfus Government Prime Cash Management invests only in U.S. government securities, and Dreyfus Government Cash Management invests only in U.S. government securities and in repurchase agreements.
An investment in a fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.Although each fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a fund.
Concepts to understand
Money market fund: a specific type of fund that seeks to maintain a $1.00 price per share. Money market funds are subject to strict federal requirements and must:
Repurchase agreement: a commercial bank or securities dealer sells securities to a fund and agrees to repurchase them at an agreed-upon date and price. These agreements offer a fund a means of investing money for a short period of time.
The Funds 1
Dreyfus Government Cash Management
GOAL/APPROACH
The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.
To pursue its goal, the fund invests in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities, and repurchase agreements (including tri-party repurchase agreements). The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government.
MAIN RISKS
The funds yield will fluctuate as the short-term securities in its portfolio mature and the proceeds are reinvested in securities with different interest rates.
While the fund has maintained a constant share price since inception, and will continue to try to do so, the following factors could reduce the funds income level and/or share price:
Not all obligations of the U.S. government, its agencies and instrumentalities are backed by the full faith and credit of the U.S. Treasury. Some obligations, such as those issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer.Any guarantee by the U.S. government or its agencies or instrumentalities of a security held by the fund does not apply to the market value of such security or to shares of the fund itself. In addition, because many types of U.S. government securities trade actively outside the United States, their prices may rise and fall as changes in global economic conditions affect the demand for these securities.
2
PAST PERFORMANCE
The bar chart and table below illustrate the risks of investing in the fund. The bar chart shows the changes in the performance of the funds Agency shares from year to year.The table shows the average annual total returns of the funds Agency shares over time.The historical performance of the funds Administrative shares, which are not offered in this prospectus, is used to calculate the performance shown in the bar chart and table for the funds Agency shares for periods prior to October 1, 2007 (the date Agency shares were initially offered).All of the funds share classes invest in the same portfolio of securities. Performance for each share class will vary from the performance of the funds other share classes due to differences in expenses. The performance figures shown for periods prior to October 1, 2007 have not been adjusted to reflect differences in distribution and servicing fees, which generally are higher for Administrative shares. All returns assume reinvestment of dividends and distributions. Of course, past performance (before and after taxes) is no guarantee of future results.
Average annual total returns as of 12/31/07 | ||||
Agency shares * | ||||
1 Year | 5 Years | 10 Years | ||
|
|
|
||
4.93% | 2.92% | 3.66% | ||
* Based on the performance of the funds Administrative shares for | ||||
periods prior to October 1, 2007. | ||||
Clients should call your Citizens Representative or | ||||
1-800-242-2224 for the current yield for Agency | ||||
shares. Individuals or entities for whom institutions may | ||||
purchase or redeem shares should call the institution | ||||
directly. |
What this fund is and isnt
This fund is a mutual fund: a pooled investment that is professionally managed and gives you the opportunity to participate in financial markets. It strives to reach its stated goal, although as with all mutual funds, it cannot offer guaranteed results.
An investment in this fund is not a bank deposit. It is not insured or guaranteed by the FDIC or any other government agency. It is not a complete investment program. You could lose money in this fund, but you also have the potential to make money.
Dreyfus Government Cash Management 3
DREYFUS GOVERNMENT CASH MANAGEMENT (continued)
EXPENSES
As an investor, you pay certain fees and expenses in connection with the fund, which are described for Agency shares in the table below. Annual fund operating expenses are paid out of fund assets, so their effect is reflected in the amount of income available for distribution to shareholders.
Fee table | ||||||
Annual fund operating expenses | ||||||
% of average daily net assets | ||||||
Management fees | 0.20% | |||||
Rule 12b-1 fee | 0.06% | |||||
Other expenses | none | |||||
|
|
|
||||
Total | 0.26% | |||||
|
|
|
|
|||
Expense example | ||||||
1 Year | 3 Years | 5 Years | 10 Years | |||
|
|
|
|
|||
$27 | $84 | $146 | $331 |
This example shows what you could pay in expenses over time. It uses the same hypothetical conditions other funds use in their prospectuses: $10,000 initial investment, 5% total return each year and no changes in expenses. The figures shown would be the same whether you sold your shares at the end of a period or kept them. Because actual returns and expenses will be different, the example is for comparison only.
Concepts to understand
Management fee: the fee paid to Dreyfus for managing the funds portfolio and assisting in all aspects of the funds operations.
From time to time, Dreyfus may limit expenses to the extent it deems appropriate to enhance the yield of a fund, or a particular class of a fund, during periods when fixed expenses have a significant impact on the yield of a fund, or a particular class of a fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and temporary and may be revised or terminated by Dreyfus at any time without notice.
Rule 12b-1 fee: the fee paid to the funds distributor for distributing Administrative shares, for advertising and marketing related to Administrative shares, and for providing account service and maintenance. Because this fee is paid on an ongoing basis out of fund assets attributable to Administrative shares, over time it will increase the cost of your investment in Administrative shares and could cost you more than paying other types of sales charges.
Other expenses: under an agreement with Dreyfus, in effect since the fund commenced offering Administrative shares, the fund only pays the management fee and the Rule 12b-1 fee. Dreyfus pays all other fund expenses directly. Dreyfus may terminate this agreement upon at least 90 days prior notice to investors, but has committed not to do so at least through May 31, 2009.
4
Dreyfus Government Prime Cash Management
GOAL/APPROACH
The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.
To pursue its goal, the fund only invests in securi ties issued or guaranteed as to principal and interest by the U.S. government or its agencies or instru mentalities.The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government.
While the fund is permitted to invest in the full range of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, the fund currently is managed so that income paid by the fund will be exempt from state and local taxes. Because rules regarding the state and local taxation of dividend income can differ from state to state, investors are urged to consult their tax advisers about the taxation of the funds dividend income in their state and locality.
MAIN RISKS
The funds yield will fluctuate as the short-term securities in its portfolio mature and the proceeds are reinvested in securities with different interest rates.
While the fund has maintained a constant share price since inception, and will continue to try to do so, the following factors could reduce the funds income level and/or share price:
Not all obligations of the U.S. government, its agencies and instrumentalities are backed by the full faith and credit of the U.S. Treasury. Some obligations, such as those issued by the Student Loan Marketing Association and the Federal Home Loan Banks, are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer.Any guarantee by the U.S. government or its agencies or instrumentalities of a security held by the fund does not apply to the market value of such security or to shares of the fund itself. In addition, because many types of U.S. government securities trade actively outside the United States, their prices may rise and fall as changes in global economic conditions affect the demand for these securities.
Dreyfus Government Prime Cash Management 5
DREYFUS GOVERNMENT PRIME CASH MANAGEMENT (continued)
PAST PERFORMANCE
The bar chart and table below illustrate the risks of investing in the fund. The bar chart shows the changes in the performance of the funds Agency shares from year to year.The table shows the average annual total returns of the funds Agency shares over time. The historical performance of the funds Administrative shares, which are not offered in this prospectus, is used to calculate the performance shown in the bar chart and table for the funds Agency shares for periods prior to October 1, 2007 (the date Agency shares were initially offered).All of the funds share classes invest in the same portfolio of securities. Performance for each share class will vary from the performance of the funds other share classes due to differences in expenses. The performance figures shown for periods prior to October 1, 2007 have not been adjusted to reflect differences in distribution and servicing fees, which generally are higher for Administrative shares. All returns assume reinvestment of dividends and distributions. Of course, past performance (before and after taxes) is no guarantee of future results.
Average annual total returns as of 12/31/07 | ||||
Agency shares * | ||||
Since | ||||
inception | ||||
1 Year | 5 Years | (2/27/98) | ||
|
|
|
||
4.89% | 2.87% | 3.57% | ||
* Based on the performance of the funds Administrative shares for | ||||
periods prior to October 1, 2007. | ||||
Clients should call your Citizens Representative or | ||||
1-800-242-2224 for the current yield for Agency | ||||
shares. Individuals or entities for whom institutions may | ||||
purchase or redeem shares should call the institution | ||||
directly. |
What this fund is and isnt
This fund is a mutual fund: a pooled investment that is professionally managed and gives you the opportunity to participate in financial markets. It strives to reach its stated goal, although as with all mutual funds, it cannot offer guaranteed results.
An investment in this fund is not a bank deposit. It is not insured or guaranteed by the FDIC or any other government agency. It is not a complete investment program. You could lose money in this fund, but you also have the potential to make money.
6
EXPENSES
As an investor, you pay certain fees and expenses in connection with the fund, which are described for Agency shares in the table below. Annual fund operating expenses are paid out of fund assets, so their effect is reflected in the amount of income available for distribution to shareholders.
Fee table | ||||||
Annual fund operating expenses | ||||||
% of average daily net assets | ||||||
Management fees | 0.20% | |||||
Rule 12b-1 fee | 0.06% | |||||
Other expenses | none | |||||
|
|
|
||||
Total | 0.26% | |||||
|
|
|
|
|||
Expense example | ||||||
1 Year | 3 Years | 5 Years | 10 Years | |||
|
|
|
|
|||
$27 | $84 | $146 | $331 |
This example shows what you could pay in expenses over time. It uses the same hypothetical conditions other funds use in their prospectuses: $10,000 initial investment, 5% total return each year and no changes in expenses. The figures shown would be the same whether you sold your shares at the end of a period or kept them. Because actual returns and expenses will be different, the example is for comparison only.
Concepts to understand
Management fee: the fee paid to Dreyfus for managing the funds portfolio and assisting in all aspects of the funds operations.
From time to time, Dreyfus may limit expenses to the extent it deems appropriate to enhance the yield of the fund, or a particular class of the fund, during periods when fixed expenses have a significant impact on the yield of the fund, or a particular class of the fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and temporary and may be revised or terminated by Dreyfus at any time without notice.
Rule 12b-1 fee: the fee paid to the funds distributor for distributing Agency shares, for advertising and marketing related to Agency shares, and for providing account service and maintenance. Because this fee is paid on an ongoing basis out of fund assets attributable to Agency shares, over time it will increase the cost of your investment in Agency shares and could cost you more than paying other types of sales charges.
Other expenses: under an agreement with Dreyfus, in effect since the fund commenced offering Agency shares, the fund only pays the management fee and the Rule 12b-1 fee. Dreyfus pays all other fund expenses directly. Dreyfus may terminate this agreement at any time upon at least 90 days prior notice to investors, but has committed not to do so at least through May 31, 2009.
Dreyfus Government Prime Cash Management 7
MANAGEMENT
Investment adviser
The investment adviser for each fund is The Dreyfus Corporation (Dreyfus), 200 Park Avenue, New York, New York 10166. Founded in 1947, Dreyfus manages approximately $315 billion in approximately 170 mutual fund portfolios. For the past fiscal year, each fund paid Dreyfus a management fee at the annual rate of 0.20% of the funds average daily net assets. A discussion regarding the basis for the boards approving each such funds management agreement with Dreyfus is available in the relevant funds semiannual report for the six months ended July 31, 2007. Dreyfus is the primary mutual fund business of The Bank of New York Mellon Corporation (BNY Mellon), a global financial services company focused on helping clients move and manage their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing asset and wealth management, asset servicing, issuer services, and treasury services through a worldwide client-focused team. BNY Mellon has more than $23 trillion in assets under custody and administration and $1.1 trillion in assets under management, and it services more than $11 trillion in outstanding debt. Additional information is available at www.bnymellon.com.
The Dreyfus asset management philosophy is based on the belief that discipline and consistency are important to investment success. For each fund, Dreyfus seeks to establish clear guidelines for portfolio management and to be systematic in making decisions.This approach is designed to provide each fund with a distinct, stable identity.
Distributor
Each funds distributor is MBSC Securities Corporation (MBSC), a wholly-owned subsidiary of Dreyfus. Dreyfus or MBSC may provide cash payments out of its own resources to financial intermediaries that sell shares of the funds or provide other services. Such payments are separate from any Rule 12b-1 fees paid by the funds to those intermediaries. Because those payments are not made by shareholders or the funds, a funds total expense ratio will not be affected by any such payments. These additional payments may be made to inter-
mediaries, including affiliates, that provide shareholder servicing, sub-administration, recordkeeping and/or sub-transfer agency services, marketing support and/or access to sales meetings, sales representatives and management representatives of the financial intermediary. Cash compensation also may be paid from Dreyfus or MBSCs own resources to intermediaries for inclusion of the funds on a sales list, including a preferred or select sales list or in other sales programs.These payments sometimes are referred to as revenue sharing. From time to time, Dreyfus or MBSC also may provide cash or non-cash compensation to financial intermediaries or their representatives in the form of occasional gifts; occasional meals, tickets or other entertainment; support for due diligence trips; educational conference sponsorship; support for recognition programs; and other forms of cash or non-cash compensation permissible under broker-dealer regulations. In some cases, these payments or compensation may create an incentive for a financial intermediary or its employees to recommend or sell shares of a fund to you. Investors should contact their financial representatives for details about any payments they or their firm may receive in connection with the sale of fund shares or the provision of services to the funds.
Code of ethics
The funds, Dreyfus and MBSC have each adopted a code of ethics that permits its personnel, subject to such code, to invest in securities, including securities that may be purchased or held by the funds. The Dreyfus code of ethics restricts the personal securities transactions of its employees, and requires portfolio managers and other investment personnel to comply with the codes preclearance and disclosure procedures. The primary purpose of the code is to ensure that personal trading by Dreyfus employees does not disadvantage any Dreyfus-managed fund.
8
FINANCIAL HIGHLIGHTS
The following tables describe the performance of each funds Agency shares for the period from October 1, 2007 (commencement of initial offering) to January 31, 2008. Total return shows how much your investment in the fund would have increased (or decreased) during the period, assuming you had reinvested all dividends and distributions. These figures have been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the funds financial statements, is included in the annual report, which is available upon request.
Period Ended | ||||
January 31, | ||||
Dreyfus Government Cash Management | 2008 1 | |||
|
|
|||
Per-Share Data ($): | ||||
Net asset value, beginning of period | 1.00 | |||
Investment operations: | Investment income net | .014 | ||
Distributions: | Dividends from investment | |||
income net | (.014) | |||
Net asset value, end of period | 1.00 | |||
Total Return (%) | 4.30 2 | |||
|
|
|
||
Ratios/Supplemental Data (%): | ||||
Ratio of expenses to average net assets | .26 2 | |||
Ratio of net investment income to average net assets | 4.67 2 | |||
|
|
|||
Net assets, end of period ($ in millions) | 2 | |||
1 From October 1, 2007 (commencement of initial offering) to January 31, 2008. | ||||
2 Annualized. | ||||
|
|
|
||
Period Ended | ||||
January 31, | ||||
Dreyfus Government Prime Cash Management | 2008 1 | |||
|
|
|||
Per-Share Data ($): | ||||
Net asset value, beginning of period | 1.00 | |||
Investment operations: | Investment income net | .015 | ||
Distributions: | Dividends from investment | |||
income net | (.015) | |||
Net asset value, end of period | 1.00 | |||
Total Return (%) | 4.33 2 | |||
|
|
|
||
Ratios/Supplemental Data (%): | ||||
Ratio of expenses to average net assets | .26 2 | |||
Ratio of net investment income to average net assets | 4.61 2 | |||
|
|
|||
Net assets, end of period ($ in millions) | 10 | |||
1 From October 1, 2007 (commencement of initial offering) to January 31, 2008. | ||||
2 Annualized. |
Financial Highlights 9
Account Information
ACCOUNT POLICIES
Each fund is designed for institutional investors, particularly banks, acting for themselves or in a fiduciary, advisory, agency, custodial or similar capacity. Generally, each investor will be required to open a single master account with the fund for all purposes. In certain cases, the fund may request investors to maintain separate master accounts for shares held by the investor (i) for its own account, for the account of other institutions and for accounts for which the institution acts as a fiduciary, and (ii) for accounts for which the investor acts in some other capacity. An institution may arrange with the funds transfer agent for sub-accounting services and will be charged directly for the cost of such services. Institutions purchasing Agency shares for the benefit of their clients may impose policies, limitations and fees which are different from those described in this prospectus. The fund offers other classes of shares, which are described in separate prospectuses.
Buying shares
The price for fund shares is the funds net asset value per share (NAV), which is generally calculated at 12:00 noon, 5:00 p.m., and 8:00 p.m. on days the New York Stock Exchange is open for regular business. An order will be priced at the next NAV calculated after the order is received in proper form by the funds transfer agent or other authorized entity. Each funds investments are valued based on amortized cost. As a result, portfolio securities are valued at their acquisition cost, adjusted for discounts or premiums reflected in their purchase price. This method of valuation is designed to enable the fund to price its shares at $1.00 per share.
As to Dreyfus Government Cash Management, orders in proper form placed prior to 12:00 noon or 5:00 p.m., and payments for which are received in or converted into Federal Funds by the funds custodian by 6:00 p.m., will become effective at the price determined at 12:00 noon or 5:00 p.m., respectively, on that day. In either case, shares purchased will receive the dividend declared on that day.
As to Dreyfus Government Prime Cash Management, orders in proper form placed prior to 12:00 noon or 3:00 p.m., and payments for which are received in or converted into Federal Funds by the funds custodian by 6:00 p.m., will become effective at the price determined at 12:00 noon or 5:00 p.m., respectively, on that day. In either case, shares purchased will receive the dividend declared on that day. Orders for shares placed between 3:00 p.m. and 5:00 p.m. will not be accepted and executed, and notice of the purchase order being rejected will be given to the institution placing the order, and any funds received will be returned promptly to the sending institution.
10
As to each fund, orders effected through compatible computer facilities after 5:00 p.m., but by 8:00 p.m., will become effective at the price determined at 8:00 p.m. on that day, if Federal Funds are received by the funds custodian by 11:00 a.m. on the following business day. In this case, shares purchased will start earning dividends on the business day following the date the order became effective. Orders effected between 5:00 p.m. and 8:00 p.m., by a means other than a compatible computer facility (and otherwise in proper form), will become effective on the following business day.
All times are Eastern time.
Minimum investments | ||
Initial | Additional | |
|
|
|
Agency shares $10,000,000 * | none | |
* The minimum initial investment in Agency shares is | ||
$10,000,000, unless: (a) the investor has invested at | ||
least $10,000,000 in the aggregate among any Dreyfus | ||
Cash Management fund, Dreyfus Institutional Cash | ||
Advantage Fund and Dreyfus Institutional Cash | ||
Advantage Plus Fund (including in any class of a fund); | ||
or (b) the investor has, in the opinion of Dreyfus | ||
Investments Division, adequate intent and availability of | ||
assets to reach a future level of investment of | ||
$10,000,000 among the funds named above. |
Concepts to understand
Net asset value (NAV): a mutual fund's share price on a given day. A fund's NAV is calculated by dividing the value of its net assets by the number of its existing shares outstanding.
When calculating its NAV, a fund compares the NAV using amortized cost to its NAV using available market quotations or market equivalents which generally are provided by an independent pricing service approved by the fund's board. The pricing service's procedures are reviewed under the general supervision of the board.
Amortized cost: the value of a fund's portfolio securities, which does not take into account unrealized gains or losses. As a result, portfolio securities are valued at their acquisition cost, adjusted over time based on the discounts or premiums reflected in their purchase price. Each fund uses this valuation method pursuant to Rule 2a-7 under the 1940 Act in order to be able to price its shares at $1.00 per share. In accordance with Rule 2a-7, each fund is subject to certain maturity, quality, and diversification requirements to help it maintain the $1.00 share price.
Account Information 11
ACCOUNT POLICIES (continued)
Selling shares
Investors may sell (redeem) shares at any time by wire, telephone, or compatible computer facility. Shares will be sold at the next determined NAV.
If a redemption request is received in proper form by the funds transfer agent or other authorized entity by 5:00 p.m., the proceeds of the redemption, if transfer by wire is requested, ordinarily will be transmitted in Federal Funds on the same day, and the shares will not receive the dividend declared on that day. If a request for redemption is received in proper form by the funds transfer agent or other authorized entity after 5:00 p.m., but by 8:00 p.m., the proceeds of the redemption ordinarily will be transmitted in Federal Funds on the next business day, and the shares will receive the dividend declared on that day.
All times are Eastern time.
The processing of redemptions and the delivery of the proceeds may be delayed beyond the same or next business day, depending on the circumstance, for any period (i) during which the New York Stock Exchange is closed (other than on holidays or weekends), or during which trading on the New York Stock Exchange is restricted; (ii) when an emergency exists that makes difficult the disposal of securities owned by a fund or the determination of the fair value of the funds net assets; or (iii) as permitted by order of the Securities and Exchange Commission for the protection of fund shareholders. For these purposes, the Securities and Exchange Commission determines the conditions under which trading shall be deemed to be restricted and an emergency shall be deemed to exist.Any certificates representing fund shares being sold must be returned with the redemption request.
Before selling recently purchased shares, please note that if the fund has not yet collected payment for the shares being sold, it may delay sending the proceeds for up to eight business days or until it has collected payment.
12
General policies
Unless the investor declines telephone privileges on the application, the investor may be responsible for any fraudulent telephone order as long as Dreyfus takes reasonable measures to verify the order.
Money market funds generally are used by investors for short-term investments, often in place of bank checking or savings accounts, or for cash management purposes. Investors value the ability to add and withdraw their funds quickly, without restriction. For this reason, although Dreyfus discourages excessive trading and other abusive trading practices, the funds have not adopted policies and procedures, or imposed redemption fees or other restrictions such as minimum holding periods, to deter frequent purchases and redemptions of fund shares. Dreyfus also believes that money market funds, such as the funds, are not targets of abusive trading practices, because money market funds seek to maintain a $1.00 per share price and typically do not fluctuate in value based on market prices. However, frequent purchases and redemptions of a funds shares could increase the funds transaction costs, such as market spreads and custodial fees, and may interfere with the efficient management of the funds portfolio, which could detract from the funds performance.Accordingly, each fund reserves the right to refuse any purchase or exchange request.
Each fund reserves the right to:
refuse any purchase or exchange request that could adversely affect the fund or its operations change or discontinue its exchange privilege, or temporarily suspend this privilege during unusual market conditions change its minimum investment amounts
Each fund also reserves the right to make a redemption in kind payment in portfolio securities rather than cash if the amount being redeemed is deemed by the manager to be large enough to affect fund operations. Investors are urged to call 1-800-242-2224 before effecting any large transaction.
Each fund may also process purchase and sale orders and calculate its NAV on days that the funds primary trading markets are open and the funds management determines to do so.
Account Information 13
DISTRIBUTIONS AND TAXES
Each fund earns dividends, interest and other income from its investments, and distributes this income (less expenses) to shareholders as dividends. Each fund also realizes capital gains from its investments, and distributes these gains (less any losses) to shareholders as capital gain distributions. Each fund normally pays dividends once a month and capital gain distributions annually. Fund dividends and capital gain distributions will be reinvested in the fund unless the investor instructs the fund otherwise. There are no fees or sales charges on reinvestments.
Distributions paid are subject to federal income tax, and may also be subject to state or local taxes (unless the investor is investing through a tax-advantaged retirement account). For federal tax purposes, in general, certain fund distributions, including distributions of short-term capital gains, are taxable to investors as ordinary income.
F or federal tax purposes, certain distributions, such as distributions of short-term capital gains, are taxable to investors as ordinary income, while long-term capital gains are taxable to investors as capital gains.
Distributions that are federally taxable as ordinary income or capital gains are generally subject to that states personal income taxes. However, because the funds invest principally in U.S. Government securities, some income may not be subject to state income taxes.
The tax status of any distribution generally is the same regardless of how long an investor has been in the fund and whether distributions are reinvested or taken in cash.
An investors sale of shares, including exchanges into other funds, may result in a capital gain or loss for tax purposes.A capital gain or loss on an investment in the fund generally is the difference between the cost of the investors shares and the amount received when the investor sells them.
The tax status of an investors distributions will be detailed in the investors annual tax statement from the fund. Because everyones tax situation is unique, please consult a tax advisor before investing.
14
SERVICES FOR FUND INVESTORS
Account statements
Every fund investor automatically receives regular account statements. Each investor also will be sent a yearly statement detailing the tax characteristics of any dividends and distributions the investor has received.
Account Information 15
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1 Year Dreyfus Govt Cash Administrative Chart |
1 Month Dreyfus Govt Cash Administrative Chart |
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