PRESIDENT'S LETTER
Dear Shareholder:
For the twelve months ended December 31, 1993, the yield on the Money
Market Series of Dreyfus Money Market Instruments, Inc. was 2.61%. This is the
equivalent of an effective yield of 2.64% after taking into account the effect
of compounding.*
The yield of the Government Securities Series for the same period was
2.46% with an effective yield of 2.48% after compounding.
Short-term interest rates have been remarkably stable and remain at
historically low levels. Monetary policy, which is orchestrated by the Federal
Reserve Board, has been unchanged since September 1992 with the discount rate
and Federal Funds Rate at 3%. In general, 1993 was characterized by slow
economic growth coupled with low inflationary pressures. The entire
fixed-income market reacted favorably as evidenced by the long bond breaking
the 6% yield barrier. By the end of the fourth quarter, however, the pace of
economic activity was accelerating and interest rates rebounded off their
lows.
Looking to 1994, the economic momentum of late 1993 appears to be
continuing. Housing and auto sales have shown recent strength and unemployment
is finally coming down. What remains to be seen is if this upturn is
sustainable given the announced tax changes and health care reform with their
potential drag on consumer confidence and the economy. If, however, the
current pace of economic growth continues or increases, the Federal Reserve
and the fixed-income markets will be watching indicators for renewed signs of
inflation. For the Federal Reserve, maintaining the current low level of
inflation is a priority and any sustained increase would likely prompt
monetary policy action.
We are closely watching these developments so that we can manage the
Fund's portfolios in a manner most rewarding for the investor. The average
maturity of each Series has been at the long end of the industry average in an
attempt to sustain a higher yield in this low interest rate environment.
We would like to take this opportunity to thank you for your participation
in the Fund. We look forward to serving your future investment needs.
Sincerely,
(Joseph S. DiMartino Signature Logo)
Joseph S. DiMartino
President
January 18, 1994
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
STATEMENT OF INVESTMENTS DECEMBER 31,1993
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-24.6% AMOUNT VALUE
---------- ----------
<S> <C> <C> <C>
Dai-Ichi Kangyo Bank Ltd. (Yankee)
3.41%, 1/18/94.................................................................... $ 5,000,000 $ 5,000,281
Mitsubishi Bank Ltd. (Yankee)
3.42%-3.58%, 6/9/94-9/23/94....................................................... 10,000,000 10,000,000
NationsBank of North Carolina NA (London)
3.60%, 4/25/94.................................................................... 5,000,000 5,000,000
Norinchukin Bank (London)
3.48%, 1/18/94.................................................................... 6,000,000 5,999,792
Norinchukin Bank (Yankee)
3.34%, 2/15/94.................................................................... 5,000,000 5,000,403
Sanwa Bank Ltd. (London)
3.44%, 1/24/94................................................................... 5,000,000 5,000,028
Sanwa Bank Ltd. (Yankee)
3.31%, 1/5/94..................................................................... 5,000,000 5,000,000
SwedBank (Yankee)
3.45%-3.48%, 1/11/94-7/25/94...................................................... 10,000,000 9,999,997
----------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT (cost $51,000,501)...................... $ 51,000,501
===========
COMMERCIAL PAPER-36.9%
Bankers Trust New York Corp.
3.50%, 8/15/94................................................................ $ 9,000,000 $ 8,807,335
Central Hispano North American Capital Corp.
3.33%, 1/10/94................................................................ 3,000,000 2,997,533
Den Danske Corp. Inc.
3.36%, 2/2/94................................................................. 5,000,000 4,985,200
General Electric Capital Corp.
3.25%, 1/3/94................................................................. 5,000,000 4,999,097
General Motors Acceptance Corp.
3.41%, 1/5/94................................................................. 10,000,000 9,996,250
ITT Corp.
3.30%, 1/3/94................................................................. 5,000,000 4,999,083
Merril Lynch & Co. Inc.
3.28%, 3/14/94................................................................ 5,000,000 4,967,700
Morgan Stanley Group Inc.
3.30%, 1/3/94................................................................. 5,000,000 4,999,083
Nordbanken N.A. Inc.
3.40%-3.50%, 2/4/94-2/15/94................................................... 10,000,000 9,962,881
Spintab AB
3.36%, 3/30/94................................................................ 10,000,000 9,919,334
SwedBank Inc.
3.46%, 1/18/94................................................................ 10,000,000 9,983,944
----------
TOTAL COMMERCIAL PAPER (cost $76,617,440)......................................... $ 76,617,440
===========
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
PRINCIPAL
CORPORATE NOTES-15.0% AMOUNT VALUE
---------- ----------
Bear Stearns Companies Inc.
3.49%, 9/13/94 (a)............................................................ $ 10,000,000 $ 10,000,000
Ford Motor Credit Co.
3.77%, 12/12/94 (a)........................................................... 10,000,000 10,155,063
Lehman Brothers Holdings Inc.
3.58%-3.74%, 5/19/94-5/25/94 (a).............................................. 11,000,000 11,002,375
----------
TOTAL CORPORATE NOTES (cost $31,157,438).......................................... $ 31,157,438
===========
SHORT-TERM BANK NOTES-14.7%
Bank of New York (Delaware)
3.20%, 6/30/94................................................................ $ 5,000,000 $ 5,004,425
Comerica Bank
3.81%, 1/11/94................................................................ 7,610,000 7,609,967
Huntington National Bank
3.57%, 1/25/94................................................................ 8,000,000 8,000,546
NationsBank of North Carolina NA
3.45%, 9/30/94................................................................ 5,000,000 4,997,204
PNC Bank of Ohio
3.72%, 12/15/94............................................................... 5,000,000 4,996,739
----------
TOTAL SHORT-TERM BANK NOTES (cost $30,608,881).................................... $ 30,608,881
===========
U.S. GOVERNMENT AGENCY-2.4%
Federal National Mortgage Association
Floating Rate Notes
3.30%, 10/7/94 (a)
(cost $5,007,166)............................................................. $ 5,000,000 $ 5,007,166
===========
TIME DEPOSIT-3.1%
Republic National Bank of NewYork (London)
2.37%, 1/3/94
(cost $6,310,000).............................................................. $ 6,310,000 $ 6,310,000
===========
REPURCHASE AGREEMENT-2.4%
Yamaichi International America Inc.
3.20%, dated 12/31/93, due 1/3/94 in the amount of $5,001,333
(fully collateralized by $5,020,000 U.S. Treasury
Notes 5%, due 6/30/94, value $5,061,481)
(cost $5,000,000)............................................................. $ 5,000,000 $ 5,000,000
===========
TOTAL INVESTMENTS (cost $205,701,426)................................... 99.1% $ 205,701,426
===== ===========
CASH AND RECEIVABLES (NET).............................................. .9% $ 1,835,208
===== ===========
NET ASSETS.............................................................. 100.0% $207,536,634
====== ===========
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC., GOVERNMENT SECURITIES SERIES
STATEMENT OF INVESTMENTS DECEMBER 31, 1993
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-17.6% PURCHASE AMOUNT VALUE
---------- ----------- ------------
<S> <C> <C> <C> <C>
1/13/94.................................................................... 3.20% $10,000,000 $ 9,989,517
2/10/94.................................................................... 3.26 15,000,000 14,946,583
3/10/94.................................................................... 3.20 15,000,000 14,912,167
5/5/94.................................................................... 3.26 15,000,000 14,834,925
6/2/94.................................................................... 3.27 23,000,000 22,688,400
8/25/94.................................................................... 3.25 5,000,000 4,896,750
11/17/94.................................................................... 3.49 10,000,000 9,700,445
------------
TOTAL U.S. TREASURY BILLS (cost $91,968,787)................................... $ 91,968,787
============
U.S. TREASURY NOTES-40.0%
7.00%, 1/15/94............................................................. 3.23% $25,000,000 $ 25,041,589
4.88%, 1/31/94............................................................. 3.45 15,000,000 15,016,456
5.38%, 2/28/94............................................................. 3.33 17,000,000 17,053,758
5.38%, 4/30/94............................................................. 3.39 20,000,000 20,124,715
9.50%, 5/15/94............................................................. 3.29 15,000,000 15,333,703
5.13%, 5/31/94............................................................. 3.34 14,000,000 14,098,990
4.25%, 7/31/94............................................................. 3.40 50,000,000 50,230,634
6.88%, 8/15/94............................................................. 3.33 15,000,000 15,320,204
8.63%, 8/15/94............................................................. 3.41 25,000,000 25,784,871
4.25%, 8/31/94............................................................. 3.38 10,000,000 10,054,729
------------
TOTAL U.S. TREASURY NOTES ($208,059,649)....................................... $208,059,649
============
REPURCHASE AGREEMENTS-41.2%
Bear, Stearns & Co. Inc.
dated 12/31/93, due 1/3/94 in the amount of $57,015,200
(fully collateralized by $58,333,000 U.S. Treasury
Strips due from 2/15/94 to 11/15/94, value $57,696,883).................... 3.20% $57,000,000 $ 57,000,000
First Interstate Bank of California
dated 12/31/93, due 1/3/94 in the amount of $1,296,286
(fully collateralized by $1,315,000 U.S.Treasury
Bills due 1/6/94, value $1,314,538)........................................ 2.65 1,296,000 1,296,000
Goldman, Sachs & Co.
dated 12/31/93, due 1/3/94 in the amount of $46,011,883
(fully collateralized by $45,455,000 U.S. Treasury
Notes 8.5%, due 3/31/94, value $47,013,925)................................ 3.10 46,000,000 46,000,000
Kidder, Peabody & Co. Inc.
dated 12/31/93, due 1/3/94 in the amount of $70,018,667
(fully collateralized by $71,669,000 U.S. Treasury
Bills due from 1/20/94 to 6/2/94, value $71,058,661)....................... 3.20 70,000,000 70,000,000
Aubrey G. Lanston & Co. Inc.
dated 12/31/93, due 1/3/94 in the amount of $40,010,667
(fully collateralized by $40,700,000 U.S. Treasury
Bills due 3/24/94, value $40,419,430)...................................... 3.20 40,000,000 40,000,000
------------
TOTAL REPURCHASE AGREEMENTS (cost $214,296,000)................................ $214,296,000
============
TOTAL INVESTMENTS (cost $514,324,436).................................. 98.8% $514,324,436
====== ============
CASH AND RECEIVABLES (NET)............................................. 1.2% $ 6,384,050
====== ============
NET ASSETS............................................................. 100.0% $520,708,486
====== ============
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable interest rate - subject to periodic change.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1993
GOVERNMENT
MONEY MARKET SECURITIES
ASSETS: SERIES SERIES
------------ ------------
<S> <C> <C>
Investments in securities, at value (including repurchase agreements of
$5,000,000 and $214,296,000 for the Money Market Series and
Government Securities Series, respectively)-Note 2(a,b)................ $205,701,426 $514,324,436
Cash....................................................................... 517,648 4,991,025
Interest receivable........................................................ 1,345,827 4,097,665
Prepaid expenses........................................................... 160,552 137,526
------------ ------------
207,725,453 523,550,652
------------ ------------
LIABILITIES:
Due to The Dreyfus Corporation............................................. 86,647 225,909
Payable for Common Stock redeemed.......................................... _- 2,430,349
Accrued expenses........................................................... 102,172 185,908
------------ ------------
188,819 2,842,166
------------ ------------
NET ASSETS..................................................................... $207,536,634 $520,708,486
============ ============
REPRESENTED BY:
Paid-in capital............................................................ $207,624,517 $520,722,627
Accumulated net realized (loss) on investments............................. (87,883) (14,141)
------------ ------------
NET ASSETS, at value........................................................... $207,536,634 $520,708,486
============ ============
Shares of Common Stock outstanding:
Money Market Series
(5 billion shares of $.01 par value Common Stock authorized)........... 207,608,017
============
Government Securities Series
(10 billion shares of $.01 par value Common Stock authorized).......... 520,722,627
============
NET ASSET VALUE, offering and redemption price per share:
Money Market Series
($207,536,634 / 207,608,017 shares).................................... $1.00
=====
Government Securities Series
($520,708,486 / 520,722,627 shares).................................... $1.00
=====
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1993
GOVERNMENT
MONEY MARKET SECURITIES
SERIES SERIES
------------ ------------
INVESTMENT INCOME:
INTEREST INCOME............................................................ $ 7,798,819 $ 19,460,921
------------ ------------
EXPENSES-Note 2(c):
Management fee-Note 3(a)............................................... $ 1,131,904 $ 2,983,841
Shareholder servicing costs-Note 3(b).................................. 581,168 1,442,866
Custodian fees......................................................... 51,119 153,482
Professional fees...................................................... 25,374 69,512
Registration fees...................................................... 21,935 36,697
Prospectus and shareholders' reports................................... 13,674 28,199
Directors' fees and expenses-Note 3(c)................................. 12,414 33,733
Miscellaneous.......................................................... 40,125 17,622
------------ ------------
TOTAL EXPENSES..................................................... 1,877,713 4,765,952
------------ ------------
INVESTMENT INCOME-NET.......................................................... 5,921,106 14,694,969
NET REALIZED GAIN (LOSS) ON INVESTMENTS-Note 2(b).............................. 94,804 (10,529)
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 6,015,910 $ 14,684,440
============ ============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET SERIES GOVERNMENT SECURITIES SERIES
---------------------------- ------------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
---------------------------- ------------------------------
1992 1993 1992 1993
------------ ------------ -------------- --------------
OPERATIONS:
<S> <C> <C> <C> <C>
Investment income-net........................ $ 9,218,987 $ 5,921,106 $ 23,767,641 $ 14,694,969
Net realized gain (loss) on investments...... 54,749 94,804 (3,612) (10,529)
------------ ------------ -------------- --------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............ 9,273,736 6,015,910 23,764,029 14,684,440
------------ ------------ -------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net........................ (9,218,987) (5,921,106) (23,767,641) (14,694,969)
Net realized gain on investments............. __ __ (137) __
------------ ------------ -------------- --------------
TOTAL DIVIDENDS.......................... (9,218,987) (5,921,106) (23,767,778) (14,694,969)
------------ ------------ -------------- --------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold................ 726,880,304 624,141,627 1,806,312,665 1,782,974,645
Dividends reinvested......................... 8,026,963 5,049,904 20,361,219 11,950,476
Cost of shares redeemed...................... (774,992,091) (664,076,108) (1,875,653,294) (1,931,767,024)
------------ ------------ -------------- --------------
(DECREASE) IN NET ASSETS FROM CAPITAL
STOCK TRANSACTIONS................... (40,084,824) (34,884,577) (48,979,410) (136,841,903)
------------ ------------ -------------- --------------
TOTAL (DECREASE) IN NET ASSETS... (40,030,075) (34,789,773) (48,983,159) (136,852,432)
NET ASSETS:
Beginning of year............................ 282,356,482 242,326,407 706,544,077 657,560,918
------------ ------------ -------------- --------------
End of year.................................. $242,326,407 $207,536,634 $ 657,560,918 $ 520,708,486
============ ============ ============== ==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of Common Stock outstanding, total
investment return, ratios to average net assets and other supplemental data for each year indicated. This
information has been derived from information provided in the Fund's financial statements.
YEAR ENDED DECEMBER 31,
----------------------------------------------
PER SHARE DATA: 1989 1990 1991 1992 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year..................... $.9991 $.9993 $.9992 $.9992 $.9993
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net.................................. .0864 .0761 .0580 .0346 .0261
Net realized gain (loss) on investments................ .0002 (.0001) -- .0001 .0004
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS................... .0866 .0760 .0580 .0347 .0265
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net................... (.0864) (.0761) (.0580) (.0346) (.0261)
Dividends from net realized gain on investments........ -- -- -- -- --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS................................ (.0864) (.0761) (.0580) (.0346) (.0261)
------ ------ ------ ------ ------
Net asset value, end of year........................... $.9993 $.9992 $.9992 $.9993 $.9997
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 9.00% 7.88% 5.95% 3.51% 2.64%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................ .74% .74% .72% .75% .83%
Ratio of net investment income to average net assets... 8.65% 7.62% 5.83% 3.48% 2.62%
Net Assets, end of year (000's Omitted)................ $357,660 $334,432 $282,356 $242,326 $207,537
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC., GOVERNMENT SECURITIES SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of Common Stock outstanding, total
investment return, ratios to average net assets and other supplemental data for each year indicated.
This information has been derived from information provided in the Fund's financial statements.
YEAR ENDED DECEMBER 31,
---------------------------------------------------
PER SHARE DATA: 1989 1990 1991 1992 1993
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year..................... $ .9998 $ .9999 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net.................................. .0836 .0735 .0551 .0339 .0246
Net realized gain (loss) on investments................ .0003 .0001 -- -- --
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS................... .0839 .0736 .0551 .0339 .0246
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net................... (.0836) (.0735) (.0551) (.0339) (.0246)
Dividends from net realized gain on investments........ (.0002) -- -- -- --
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS................................ (.0838) (.0735) (.0551) (.0339) (.0246)
------- ------- ------- ------- -------
Net asset value, end of year........................... $ .9999 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 8.71% 7.61% 5.65% 3.45% 2.48%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................ .70% .70% .69% .72% .80%
Ratio of net investment income to average net assets... 8.35% 7.35% 5.51% 3.39% 2.46%
Net Assets, end of year (000's Omitted)................ $651,700 $724,202 $706,544 $657,561 $520,708
See notes to financial statements.
</TABLE>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
The Fund is registered under the Investment Company Act of 1940
("Act") as a diversified open-end management investment company and
operates as a series company issuing two classes of Common Stock: the
Money Market Series and the Government Securities Series. The Fund
accounts separately for the assets, liabilities and operations of each
series. Dreyfus Service Corporation ("Distributor"), a wholly-owned
subsidiary of The Dreyfus Corporation ("Manager"), acts as the exclusive
distributor of the Fund's shares, which are sold to the public without a
sales charge.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00 for each series; the Fund has adopted certain investment,
portfolio valuation and dividend and distribution policies to enable it to do
so.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost,
which has been determined by the Fund's Board of Directors to represent
the fair value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss
from securities transactions are recorded on the identified cost basis.
Interest income is recognized on the accrual basis. Cost of investments
represents amortized cost.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Fund's Manager, subject to
the seller's agreement to repurchase and the Fund's agreement to resell
such securities at a mutually agreed upon price. Securities purchased
subject to repurchase agreements are deposited with the Fund's custodian
and, pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. If the value of the underlying securities
falls below the value of the repurchase price plus accrued interest, the
Fund will require the seller to deposit additional collateral by the next
business day. If the request for additional collateral is not met, or the
seller defaults on its repurchase obligation, the Fund maintains the right
to sell the underlying securities at market value and may claim any
resulting loss against the seller.
(C) EXPENSES: Expenses directly attributable to each series are charged
to that series' operations; expenses which are applicable to both series
are allocated between them.
(D) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund, with
respect to both series, to declare dividends from investment income-net
on each business day; such dividends are paid monthly. Dividends from net
realized capital gain, with respect to both series, are normally declared
and paid annually, but each series may make distributions on a more
frequent basis to comply with the distribution requirements of the
Internal Revenue Code. However, to the extent that a net realized capital
gain of either series can be reduced by a capital loss carryover of that
series, such gain will not be distributed.
(E) FEDERAL INCOME TAXES: It is the policy of each series to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the provisions
available to certain investment companies, as defined in applicable
sections of the Internal Revenue Code, and to make distributions of
taxable income sufficient to relieve it from all, or substantially all,
Federal income taxes.
The Money Market Series has an unused capital loss carryover of
approximately $88,000 available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent
to December 31, 1993. If not applied, the carryover expires in 1995.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Government Securities Series has an unused capital loss carryover
of $7,971 available for Federal income tax purposes to be applied against
future net securities profits, if any, realized subsequent to December 31,
1993. The carryover does not include net realized securities losses from
November 1, 1993 through December 31, 1993 which are treated, for Federal
income tax purposes, as arising in fiscal 1994. If not applied, $3,612 of
the carryover expires in 2000 and $4,359 expires in 2001.
At December 31, 1993, the cost of investments of each series for
Federal income tax purposes was substantially the same as the cost for
financial reporting purposes (see the Statement of Investments).
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the
Manager, the management fee for each series is computed at the annual
rate of .50 of 1% of the average daily value of the net assets of each
series and is payable monthly.
The Agreement provides for an expense reimbursement from the
Manager should the aggregate expenses of either series, exclusive of
taxes, interest on borrowings, brokerage commissions and extraordinary
expenses, exceed 1% of the average daily value of such series' net assets
for any full year. No expense reimbursement was required pursuant to the
Agreement for the year ended December 31, 1993.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses the Distributor an amount not to exceed an annual rate of .25
of 1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. During the
year ended December 31, 1993, the Money Market Series and the
Government Securities Series were charged an aggregate of $258,843 and
$784,225, respectively, pursuant to the Shareholder Services Plan.
(C) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each director
who is not an "affiliated person" receives from the Fund an annual fee of
$4,500 and an attendance fee of $500 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger providing for the merger of the Manager with a subsidiary
of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a
number of contingencies, including the receipt of certain regulatory
approvals and the approvals of the stockholders of the Manager and of
Mellon. The merger is expected to occur in mid-1994, but could occur
significantly later.
Because the merger will constitute an "assignment" of the Fund's
Management Agreement with the Manager under the Investment Company
Act of 1940, and thus a termination of such Agreement, the Manager will
seek prior approval from the Fund's Board and shareholders.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS MONEY MARKET INSTRUMENTS, INC.
We have audited the accompanying statement of assets and liabilities
of Dreyfus Money Market Instruments, Inc. (comprising, respectively, the
Money Market Series and the Government Securities Series), including the
statement of investments, as of December 31, 1993, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended, and
financial highlights for each of the years indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1993 by
correspondence with the custodian and others. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Money Market Instruments, Inc. at December 31, 1993,
the results of their operations for the year then ended, the changes in
their net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
(Ernst and Young Signature Logo)
New York, New York
February 3, 1993
(Dreyfus "D" Logo)
DREYFUS MONEY MARKET
INSTRUMENTS, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 008/060AR9312
(Dreyfus Logo)
Money Market
Instruments, Inc.
Annual Report
December 31, 1993
