Dreyfus
Money Market
Instruments, Inc.
SEMIANNUAL REPORT June 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
15 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Money Market
Instruments, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Money Market
Instruments, Inc., covering the six-month period from January 1, 2000 through
June 30, 2000. Inside, you'll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Thomas S. Riordan.
When the reporting period began, international and domestic economies were
growing rapidly, giving rise to concerns that long-dormant inflationary
pressures might reemerge. Consumers continued to spend heavily, unemployment
levels reached new lows and the stock market, while highly volatile, generally
continued to climb.
Because robust economic growth may trigger an acceleration of inflation, the
Federal Reserve Board raised key short-term interest rates three times during
the reporting period, for a total increase of 1.00 percentage points. These
interest-rate hikes contributed to a total interest-rate increase of 1.75
percentage points since late June 1999, before the current reporting period
began. While these economic influences generally adversely affected longer term
bonds, they positively influenced money market yields.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Money Market Instruments, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
July 17, 2000
DISCUSSION OF FUND PERFORMANCE
Thomas S. Riordan, Portfolio Manager
How did Dreyfus Money Market Instruments, Inc. perform during the period?
For the six-month period ended June 30, 2000, the fund produced annualized
yields of 5.31% for its Money Market Series and 4.97% for its Government
Securities Series. Taking into account the effect of compounding, the annualized
effective yields were 5.44% for the fund's Money Market Series and 5.09% for its
Government Securities Series.(1)
What is the fund's investment approach?
The fund seeks a high level of income as is consistent with the preservation of
capital and the maintenance of liquidity. To pursue this goal:
*The fund' s Money Market Series invests in a diversified portfolio of high
quality, short-term debt securities. These include securities issued or
guaranteed as to principal and interest by the U.S. Government or its agencies
and instrumentalities, certificates of deposit, short-term securities issued by
domestic or foreign banks, repurchase agreements, asset-backed securities,
domestic and dollar-denominated foreign commercial paper and other short-term
corporate obligations, including those with floating or variable rates of
interest, and dollar-denominated obligations issued or guaranteed by foreign
governments.
*The fund's Government Securities Series invests only in short-term securities
issued or guaranteed as to principal and interest by the U.S. Government or its
agencies or instrumentalities and repurchase agreements in respect of these
securities.
What factors influenced the fund's performance?
The money markets continued to digest mixed signals from the economy as the
reporting period began. The Open Market Committee of the Federal Reserve Board
(the "Fed" ) had acted to relieve inflationary pres
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
sures, taking a cautious, measured approach. It had raised interest rates three
times in 1999, each time by 0.25 percentage points. Each tightening brought
renewed debate as to whether rates were sufficiently high to ease growth and
head off inflation, or whether further tightening would be necessary. Economic
data released in early January pointed toward the possibility of additional
interest-rate increases in the near future.
Gross domestic product (" GDP" ) growth had quickened to a stunning 7.3% for
fourth quarter 1999. Concern mounted that economic growth was accelerating
considerably past a limit that could be sustained without triggering destructive
levels of inflation. In a continuing attempt to head off inflation, the Fed
raised interest rates for the fourth time in this cycle of tightening in early
February, and a fifth time in March.
Preliminary first quarter 2000 figures showed GDP growth at a less torrid, but
still strong 5.4% . Continuing indications that prices, most notably in the
energy sector, were moving higher added to the money market's concerns. Greater
than expected domestic demand for goods and services continued. As overseas
economies have recovered, their demand for raw materials has picked up as well,
creating global upward pressure on prices.
Through much of early 2000, consumer confidence and consumer spending showed few
signs of abating in response to gradual and relatively mild rate hikes. Home and
auto sales continued at record paces through the first quarter and into the
second quarter of 2000. The tightest U.S. labor market in the past 30 years
added the threat of wage-driven inflation. Such price and wage factors led the
Fed to its largest rate hike in its current credit-tightening cycle: a 0.50
percentage-point increase at its May 16th meeting.
More recently, we have seen signs that the Fed's series of rate hikes may have
begun to slow the economy. Retail sales declined in both April and May, housing
starts have slowed dramatically, and inflation figures through early 2000
appeared to be lower than market expectations. As a result, the Fed chose not to
tighten rates further at its June 28th meeting.
But economic signals remain contradictory; it is not clear that the economy has
yet cooled sufficiently for the Fed to consider its job done. Immediately
following the Fed' s June meeting, economic reports indicated that, although
growth may be slowing, inflation may be higher than previously thought. While
indexes measuring demand for housing and labor declined in May, the personal
consumption expenditures price index for first quarter 2000 was adjusted upward,
from 3.1% to 3.5%. This measure, closely followed by Federal Reserve Chairman
Greenspan, is generally considered by many to be among the best gauges of
inflation and could indicate that Fed-described concerns over "heightened
inflation pressure" may lead to a further tightening when the Fed meets again in
August.
What is the fund's current strategy?
In anticipation of rising interest rates throughout the six-month reporting
period, the fund adopted a somewhat defensive strategy. Most significantly, we
reduced the fund' s average maturity in order to increase its flexibility.
Shorter maturities were designed to help the fund take advantage of any
potential opportunities from additional interest-rate increases.
As of June 30, 2000, the fund's average maturity remained relatively short. We
will continue to monitor the situation, including the economy and changes in the
Fed' s monetary policy, and we will look to take what we believe are appropriate
actions in response with respect to the fund's portfolio.
July 17, 2000
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS
FLUCTUATE. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR
THE U.S. GOVERNMENT. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
The Fund
STATEMENT OF INVESTMENTS
<TABLE>
MONEY MARKET SERIES
June 30, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT--22.7% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Allfirst Bank
6.64%, 2/9/2001 5,000,000 (a) 4,998,172
American Express Centurion Bank
6.59%, 7/19/2000 5,000,000 5,000,000
First Tennessee Bank N.A.
6.67%, 12/11/2000 5,000,000 (a) 5,000,000
South Trust N.A.
6.55%, 7/11/2000 5,000,000 5,000,000
Union Bank of California N.A.
5.98%, 8/1/2000 4,000,000 4,000,000
Wesdeutsche Landesbank (London)
7.01%, 3/16/2001 5,000,000 5,000,000
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $28,998,172) 28,998,172
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COMMERCIAL PAPER--48.2%
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Associates Corp. of North America
6.95%, 7/3/2000 5,500,000 5,497,876
BCI Funding Corp.
6.50%, 8/2/2000 4,000,000 3,977,262
Canadian Imperial Holdings Inc.
6.62%, 8/3/2000 4,000,000 3,976,130
DaimlerChrysler North America Holding Corp.
6.25%, 7/18/2000 5,000,000 4,985,479
Den Danske Corp.
6.77%, 8/28/2000 5,000,000 4,946,431
General Electric Capital Corp.
6.67%, 9/14/2000 4,000,000 3,945,333
General Electric Capital Services Corp.
6.67%, 9/15/2000 4,000,000 3,944,604
Lehman Brothers Holdings Inc.
7.40%, 2/12/2001 5,000,000 4,779,964
San Paolo IMI U.S. Financial Co.
6.60%, 8/4/2000 5,000,000 4,969,353
Santander Finance (DE) Inc.
6.68%, 9/5/2000 5,000,000 4,939,776
Spintab AB
6.25%, 7/20/2000 5,000,000 4,983,850
Swedbank Inc.
6.57%, 7/12/2000 5,000,000 4,990,069
Principal
COMMERCIAL PAPER (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
UBS Finance Delaware LLC
6.95%, 7/3/2000 5,500,000 5,497,877
TOTAL COMMERCIAL PAPER
(cost $61,434,004) 61,434,004
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CORPORATE NOTES--18.4%
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Heller Financial Inc.
6.90%, 8/7/2000 4,000,000 (a) 4,000,000
Merrill Lynch & Co. Inc.
6.64%, 3/28/2001 5,000,000 (a) 5,000,000
Morgan (J.P.) & Co.
6.67%, 3/6/2001 5,000,000 (a) 4,999,660
Morgan Stanley Dean Witter & Co.
6.67%, 3/19/2001 5,000,000 (a) 5,000,000
Paine Webber Group Inc.
6.85%, 9/15/2000 4,500,000 (a) 4,500,000
TOTAL CORPORATE NOTES
(cost $23,499,660) 23,499,660
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SHORT-TERM BANK NOTES--3.1%
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Bank of America NA
6.25%, 7/20/2000
(cost $4,000,000) 4,000,000 4,000,000
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TIME DEPOSITS--7.5%
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Bayerische Hypo-und Vereinsbank AG (Grand Cayman)
7.00%, 7/3/2000 5,500,000 5,500,000
HSBC USA Inc. (London)
6.75%, 7/3/2000 4,063,000 4,063,000
TOTAL TIME DEPOSITS
(cost $9,563,000) 9,563,000
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TOTAL INVESTMENTS
(cost $127,494,836) 99.9% 127,494,836
CASH AND RECEIVABLES (NET) .1% 77,528
NET ASSETS 100.0% 127,572,364
(A) VARIABLE INTEREST RATE--SUBJECT PERIODIC CHANGE.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF INVESTMENTS
<TABLE>
GOVERNMENT SECURITIES SERIES
June 30, 2000 (Unaudited)
Annualized
Yield on
Date of Principal
U.S. TREASURY BILLS--49.5% Purchase (%) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
7/6/2000
(cost $159,893,333) 4.80 160,000,000 159,893,333
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY NOTES--7.6%
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5.25%, 5/31/2000
(cost $24,652,313) 6.61 25,000,000 24,652,313
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REPURCHASE AGREEMENTS--43.4%
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Barclays Capital Inc.
dated 6/30/2000, due 7/3/2000
in the amount of $12,206,253
(fully collateralized by $12,355,000
U.S. Treasury Notes, 5.00%,
due 2/8/2001, value $12,446,901) 6.15 12,200,000 12,200,000
Bears, Stearns & Co.
dated 6/30/2000, due 7/3/2000
in the amount of $32,017,333
(fully collateralized by $34,120,000
U.S. Treasury Strips, due 5/15/2001,
value $32,390,116) 6.50 32,000,000 32,000,000
Donaldson, Lufkins & Jenrette Securities Inc.
dated 6/30/2000, due 7/3/2000,
in the amount of $32,017,467
(fully collateralized by $32,166,000
U.S. Treasury Notes, 5.00%, due 2/28/2001,
value $32,401,809) 6.55 32,000,000 32,000,000
Morgan Stanley Dean Witter & Co.
dated 6/30/2000, due 7/3/2000
in the amount of $32,017,253
(fully collateralized by $32,240,000
U.S. Treasury Notes, 5.00%, due 2/28/2001,
value $32,646,224) 6.47 32,000,000 32,000,000
Annualized
Yield on
Date of Principal
REPURCHASE AGREEMENTS (CONTINUED) Purchase (%) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
Warburg Dillion Read, Inc.
dated 6/30/2000, due 7/3/2000,
in the amount of $32,017,467
(fully collateralized by $30,434,000
U.S. Treasury Notes, 13.125%, due 5/15/2001,
value $32,640,465) 6.55 32,000,000 32,000,000
TOTAL REPURCHASE AGREEMENTS
(cost $140,200,000) 140,200,000
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TOTAL INVESTMENTS (cost $324,745,646) 100.5% 324,745,646
LIABILITIES, LESS CASH AND RECEIVABLES (.5%) (1,524,615)
NET ASSETS 100.0% 323,221,031
SEE NOTES TO FINANCIAL STATEMENTS
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
June 30, 2000 (Unaudited)
Money Government
Market Securities
Series Series
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS ($):
Investments in securities, See Statement of Investments
(including repurchase agreements of $140,200,000
for the Government Securities Series)--Note 2(b) 127,494,836 324,745,646
Interest receivable 443,568 136,426
Prepaid expenses 60,662 118,919
127,999,066 325,000,991
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 54,838 181,850
Cash overdraft due to Custodian 322,988 1,518,447
Accrued expenses and other liabilities 48,876 79,663
426,702 1,779,960
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NET ASSETS ($) 127,572,364 323,221,031
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 127,612,485 323,305,410
Accumulated net realized gain (loss) on investments (40,121) (84,379)
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NET ASSETS ($) 127,572,364 323,221,031
NET ASSET VALUE PER SHARE
Money Government
Market Securities
Series Series
------------------------------------------------------------------------------------------------------------------------------------
Net Assets ($) 127,572,364 323,221,031
Shares Outstanding 127,595,985 323,305,410
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NET ASSET VALUE PER SHARE ($) 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2000 (Unaudited)
Money Government
Market Securities
Series Series
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 3,460,822 9,952,871
EXPENSES--NOTE 2:
Management fee-Note 3(a) 269,609 850,001
Shareholder servicing costs-Note 3(b) 212,466 454,942
Custodian fees 20,579 30,651
Professional fees 13,955 16,142
Registration fees 8,734 9,303
Prospectus and shareholders' reports 7,124 12,728
Directors' fees and expenses-Note 3(c) 4,526 18,921
Miscellaneous 2,625 16,160
TOTAL EXPENSES 539,618 1,408,848
INVESTMENT INCOME--NET 2,921,204 8,544,023
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NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 2(B) ($) (9,973) 3,065
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,911,231 8,547,088
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Money Market Series Government Securities Series
------------------------------------------------------------------------------------------------
Six Months Ended Six Months Ended
June 30, 2000 Year Ended June 30, 2000 Year Ended
(Unaudited) December 31, 1999 (Unaudited) December 31, 1999
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment
income-net 2,921,204 4,467,006 8,544,023 17,681,980
Net realized gain
(loss) on investments (9,973) (1,333) 3,065 (87,197)
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM
OPERATIONS 2,911,231 4,465,673 8,547,088 17,594,783
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DIVIDENDS TO
SHAREHOLDERS FROM ($):
Investment income-net (2,921,204) (4,467,006) (8,544,023) (17,681,980)
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CAPITAL STOCK TRANSACTIONS
($1.00 PER SHARE):
Net proceeds from
shares sold 404,717,471 320,522,771 770,697,474 1,597,921,400
Dividends reinvested 1,497,985 2,829,101 4,598,801 10,137,442
Cost of shares
redeemed (378,839,088) (333,779,964) (815,026,936) (1,672,681,750)
INCREASE (DECREASE)
IN NET ASSETS FROM
CAPITAL STOCK
TRANSACTIONS 27,376,368 (10,428,092) (39,730,661) (64,622,908)
TOTAL INCREASE
(DECREASE)
IN NET ASSETS 27,366,395 (10,429,425) (39,727,596) (64,710,105)
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NET ASSETS ($):
Beginning of Period 100,205,969 110,635,394 362,948,627 427,658,732
END OF PERIOD 127,572,364 100,205,969 323,221,031 362,948,627
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
FINANCIAL HIGHLIGHTS Money Market Series
The following tables describe the performance 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 derived from the fund's financial
statements.
<TABLE>
Six Months Ended
June 30, 2000 Year Ended December 31,
----------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .027 .044 .047 .047 .046 .053
Distributions:
Dividends from investment
income-net (.027) (.044) (.047) (.047) (.046) (.053)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) 5.43(a) 4.45 4.76 4.76 4.73 5.46
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets 1.00(a) .94 .94 1.00 .93 .84
Ratio of net investment income
to average net assets 5.40(a) 4.35 4.66 4.66 4.63 5.33
Decrease reflected in above
expense ratios due to under-
takings by The Dreyfus Corporation -- -- -- .01 -- --
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Net Assets, end of period
($ x 1,000) 127,572 100,206 110,635 118,767 129,344 144,172
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS Government Securities Series
Six Months Ended
June 30, 2000 Year Ended December 31,
----------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
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PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .025 .042 .047 .046 .045 .051
Distributions:
Dividends from investment
income-net (.025) (.042) (.047) (.046) (.045) (.051)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) 5.07(a) 4.31 4.83 4.72 4.60 5.18
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .83(a) .75 .69 .87 .90 .83
Ratio of net investment income
to average net assets 5.01(a) 4.24 4.71 4.62 4.50 5.07
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Net Assets, end of period
($ x 1,000) 323,221 362,949 427,659 380,992 441,769 431,444
A ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--General:
Dreyfus Money Market Instruments, Inc. (the "fund") is registered under the
Investment Company Act of 1940, as amended (the "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. The fund' s investment objective is to provide
investors with as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation (the "Manager") serves as the fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary
of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares, which
are sold to the public without a sales charge. Prior to March 22, 2000, Premier
Mutual Fund Services, Inc. was the distributor. The fund is authorized to issue
5 billion shares of $.001 par value Common Stock for the Money Market Series and
10 billion shares of $.001 par value Common Stock for the Government Securities
Series.
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. There is
no assurance, however, that the fund will be able to maintain a stable net asset
value per share of $1.00 for each series.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
NOTE 2--Significant Accounting Policies:
(a) Portfolio valuation: Investments in securities 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.
Under the terms of the custody agreement, the Money Market Series received net
earnings credits of $ 3,268 during the period ended June 30, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest. Under the terms of the custody agreement, the Government
Securities Series receives net earnings credits based on available cash balances
left on deposit.
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 on a pro rata basis.
(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 of 1986, as amended (the
" 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 applicable provisions of
the Code, and to make distributions of taxable income sufficient to relieve it
from substantially all Federal income and excise taxes.
The Money Market Series has an unused capital loss carryover of approximately
$30,000 available for Federal income tax purposes to be applied against future
net securities profits, if any, realized subsequent to December 31, 1999. If not
applied, $18,000 of the carryover expires in fiscal 2004, $4,000 expires in
fiscal 2005, $7,000 expires in fiscal 2006 and $1,000 expires in fiscal 2007.
The Government Securities Series has an unused capital loss carryover of
approximately $87,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to December
31, 1999. If not applied, the carryover expires in fiscal 2007.
At June 30, 2000, 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 Statements of Investments).
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 value of the average daily net assets of each series and is payable monthly.
(b) Under the Shareholder Services Plan, each series reimburses DSC an amount
not to exceed an annual rate of .25 of 1% of the value of each series' average
daily net assets for certain allocated expenses of providing personal services
and/or maintaining 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 period ended June 30, 2000, the Money Market Series and the
Government Securities Series were charged $122,874 and $279,918, respectively,
pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended June 30, 2000, the Money Market Series and the Government Securities
Series, were charged $59,296 and $106,271, respectively, pursuant to the
transfer agency agreement.
(c) Each Board member also serves a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective January 1, 2000,
each Board member who is not an "affiliated person" as defined in the Act
receives an annual fee of $40,000 and an attendance fee of $6,000 for each in
person meeting and $500 for telephone meetings. These fees are allocated among
the funds in the Fund Group. The chairman of the Board receives an additional
25% of such compensation. Subject to the fund's Emeritus Program Guidelines,
Emeritus Board Members, if any, receive 50% of the fund's annual retainer fee
and per meeting fee paid at the time the Board member achieves emeritus status.
The Fund
NOTES
The Fund
For More Information
Dreyfus
Money Market
Instrument, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 008-060SA006
