Dreyfus
Municipal Money
Market Fund, Inc.
SEMIANNUAL REPORT November 30, 1999
(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
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. In addition, issuers of securities in
which the fund invests may be adversely affected by year 2000-related problems.
This could have an impact on the value of the fund's investments and its share
price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
13 Statement of Assets and Liabilities
14 Statement of Operations
15 Statement of Changes in Net Assets
16 Financial Highlights
17 Notes to Financial Statements
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Municipal
Money Market Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Municipal Money
Market Fund, Inc., covering the six-month period from June 1, 1999 through
November 30, 1999. 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, Colleen Meehan.
When the reporting period began, investors were concerned that strong economic
growth in the United States might rekindle dormant inflationary pressures. In
response, the Federal Reserve Board raised short-term interest rates three times
during the summer and fall of 1999 in an attempt to forestall a potential
resurgence of inflation. These increases effectively reversed all of last fall's
interest-rate cuts, and led to higher yields on most money market securities,
including tax-exempt instruments.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Municipal Money Market Fund, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
December 15, 1999
DISCUSSION OF FUND PERFORMANCE
Colleen Meehan, Portfolio Manager
How did Dreyfus Municipal Money Market Fund, Inc. perform during the period?
For the six-month period ended November 30, 1999, the fund produced an
annualized tax-exempt yield of 2.74% . Taking into account the effects of
compounding, the fund's annualized effective yield was 2.77%.(1)
What is the fund's investment approach?
The fund' s objective is to seek a high level of federally tax-exempt income
while maintaining a stable $1.00 share price. We are especially vigilant in our
efforts to preserve capital.
In pursuing this objective, we employ two primary strategies. First, we attempt
to add value by constructing a diverse portfolio of high quality, tax-exempt
money market instruments. Second, we actively manage the fund's average maturity
in anticipation of interest-rate trends and supply-and-demand changes in the
short-term municipal marketplace.
For example, if we expect an increase in short-term supply, we may decrease the
average maturity of the fund, which would enable us to purchase new securities
with higher yields. Yields tend to rise when there is an increase of new issue
supply competing for investor interest. New securities are generally issued with
maturities in the one-year range, which tend to lengthen the fund's weighted
average maturity. If we anticipate limited new issue supply, we may extend the
portfolio' s average maturity to maintain current yields for as long as
practical. At other times we try to maintain an average maturity that reflects
our view of short-term interest-rate trends and future supply-and- demand
considerations.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
The fund was positively affected by rising interest rates over the past six
months. When the reporting period began, it had already become apparent that the
U.S. economy was growing more strongly than most analysts expected, raising
concerns that inflationary pressures might re-emerge. In an attempt to forestall
a reacceleration of inflation, the Federal Reserve Board increased short-term
interest rates three times during the summer and fall of 1999. Because the
market anticipated these rate hikes before they were announced, much of the rise
of tax-exempt money market yields had already taken place by the time the last
monetary policy change was actually implemented in November.
However, tax-exempt money market yields did not rise as much as comparable
taxable yields, primarily because of a relative lack of supply amid steady
investor demand. Many states and municipalities throughout the country have
enjoyed higher tax revenues during this period of economic prosperity, which has
enabled them to decrease their annual debt borrowings.
What is the fund's current strategy?
We have continued to focus on very high quality, liquid money market instruments
from a wide array of issuers. Some of the most frequently used instruments
include Variable Rate Demand Notes (VRDNs), which are issued by investment banks
through the securitization of longer term municipal bonds. Because VRDNs can be
redeemed at the buyer's option after either one day or seven days, they afford
the fund a high degree of liquidity as well as high credit quality. Accordingly,
as of November 30, much of the portfolio was composed of VRDNs. The remainder of
the portfolio was comprised primarily of tax-exempt commercial paper and
tax-exempt notes. Of course, the portfolio's composition will change over time.
We took advantage of new issuance of tax-exempt notes in June and July, which
effectively enabled us to lock in prevailing yields. The addition of notes also
extended the fund' s average maturity to the long
end of the neutral range, giving us the ability to maintain competitive yields
during the rest of the summer, which is usually a period of low issuance.
Accordingly, since July, new purchases have been concentrated mostly in
short-term commercial paper, which we have used to replace notes that matured or
were redeemed by their issuers. This strategy has resulted in a gradual
decrease in the fund's average maturity, which gave us the flexibility we needed
to purchase higher yielding securities that became available during the last
quarter of the year.
As the end of the year approaches, we have maintained a neutral weighted average
maturity in order to help protect the fund from any market disruptions that
Y2K-related or year-end factors may present.
December 15, 1999
(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 ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE
OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING
IN THE FUND. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES, AND SOME INCOME
MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN
SHAREHOLDERS.
The Fund
STATEMENT OF INVESTMENTS
November 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
TAX EXEMPT INVESTMENTS--101.0% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA--1.8%
Coconino County Pollution Control Corporation,
Revenue, VRDN
(Arizona Public Service Co. Project)
<S> <C> <C>
3.80% (LOC; Krediet Bank) 8,700,000 (a) 8,700,000
Mesa Industrial Development Authority, Revenue, VRDN
(Discovery Health) 3.90%, Series B (Insured; MBIA and
Liquidity Facility; Chase Manhattan) 5,800,000 (a) 5,800,000
CALIFORNIA--5.3%
California Higher Education Loan Authority,
Student Loan Revenue
3.20%, Series E-5, 6/1/2000 (LOC;
Student Loan Marketing Association) 14,000,000 14,000,000
California School Cash Reserve Program Authority
4%, Series A, 7/3/2000 (Insured; AMBAC) 15,000,000 15,076,890
Student Education Loan Marketing Corporation,
Student Loan Revenue, Refunding, VRDN
3.55%, Series A (LOC; State Street Bank and Trust Co.) 14,000,000 (a) 14,000,000
DELAWARE--9.8%
Delaware Economic Development Authority, Revenue, VRDN:
(Hospital Billing Collection):
4%, Series A (Insured; MBIA and Liquidity Facility;
Morgan Stanley) 21,325,000 (a) 21,325,000
4%, Series B (Insured; MBIA and Liquidity Facility;
Morgan Stanley) 19,000,000 (a) 19,000,000
4%, Series C (Insured; MBIA and Liquidity Facility;
Morgan Stanley) 34,400,000 (a) 34,400,000
Solid Waste Disposal and Sewer Facilities (CIBA Specialty)
3.90%, Series A (LOC; CIBA--Specialty Chemicals) 4,400,000 (a) 4,400,000
DISTRICT OF COLUMBIA--1.6%
District of Columbia Housing Finance Agency, SFMR
3.30%, Series B, 6/15/2000 (LOC; CDC Funding Corp.). 13,000,000 13,000,000
FLORIDA--1.2%
Capital Projects Finance Authority, Revenue, VRDN
(Capital Projects Loan Program)
3.85%, Series A (Insured; FSA and Liquidity Facility;
Credit Suisse) 10,000,000 (a) 10,000,000
GEORGIA--7.8%
Appling County Development Authority, PCR, CP
(Georgia Power Co. PLT Hatch Project)
3.90%, 1/14/2000 (LOC; Georgia Power) 10,000,000 10,000,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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GEORGIA (CONTINUED)
Burke County Development Authority, PCR, CP
3.90%, 1/21/2000 (Insured; AMBAC and
Liquidity Facility; Rabobank). 10,000,000 10,000,000
Cobb County, School District Notes 3.50%, 12/31/1999 11,500,000 11,504,942
Fulton County School District, Construction Sales Tax,
TAN 3.25%, 12/31/1999. 15,000,000 15,002,626
Savannah Economic Development Authority,
Revenue Exempt Facilities, VRDN
(Home Depot Project) 4.05%, Series A
(Corp. Guaranty; Home Depot) 17,000,000 (a) 17,000,000
ILLINOIS--7.3%
City of Chicago, Mandatory Tender Notes
3.75%, 12/1/1999 (LOC; Morgan Guaranty Trust Co.) 7,500,000 7,500,000
Illinois Development Finance Authority, PCR,
VRDN (Illinois Power Co.)
4%, Series C (LOC; Morgan Guaranty Trust Co.) 10,400,000 (a) 10,400,000
Illinois Health Facilities Authority, Revenue, VRDN:
(Carle Foundation) 3.90% (Insured; AMBAC
and Liquidity Facility; Bank One Corp.) 15,000,000 (a) 15,000,000
(Revolving Fund Pooled) 3.85%, Series C
(LOC; Bank One Corp.) 16,250,000 (a) 16,250,000
Madison County, EIR, VRDN (Shell Wood River Project)
3.85%, Series A (LOC; Shell Oil Co.) 10,000,000 (a) 10,000,000
INDIANA--1.9%
Indiana Health Facilities Financing Authority, Revenue, CP
(Ascension Health Credit) 3.80%, Series B, 2/9/2000 15,000,000 15,000,000
IOWA--3.3%
Iowa Finance Authority, SWDR, VRDN (Cedar River Paper Co.)
3.95%, Series A (LOC; Union Bank of Switzerland) 7,100,000 (a) 7,100,000
Iowa School Cash Anticipation Program, Iowa School Corporation
4%, Series A, 6/23/2000 (Insured; FSA) 10,000,000 10,041,730
Louisa County, PCR, Refunding (Iowa-Illinois Gas and Electric)
3.95%, Series A, 2/22/2000 9,500,000 9,500,000
KANSAS--2.0%
Butler County, Solid Waste Disposal and Cogeneration,
Revenue, VRDN
(Texaco Refinancing and Marketing)
3.90%, Series B (LOC; Texaco Inc.) 11,600,000 (a) 11,600,000
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
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KANSAS (CONTINUED)
Wichita, PCR, Refunding, VRDN (CIC Industries Inc. Project)
4.225% (LOC; The Bank of New York) 5,000,000 (a) 5,000,000
KENTUCKY--1.2%
Kentucky Association of Counties Advance Revenue
Cash Flow Borrowing Program,
COP, TRAN 4%, 6/30/2000 10,000,000 10,030,784
LOUISIANA--1.5%
New Orleans Aviation Board, Revenue,
VRDN (Passenger Facility Charge Project)
4.15% (LOC: Banque Paribas and
Canadian Imperial Bank of Commerce) 7,400,000 (a) 7,400,000
West Baton Rouge Parish Industrial District # 3,
Revenue, VRDN (Dow Chemical Co. Project)
3.95% (LOC; Dow Chemical Co.) 4,500,000 (a) 4,500,000
MARYLAND--1.1%
Carroll County, Revenue, VRDN (Fairhaven and Copper)
4%, Series B ( BPA; Branch Banking and Trust and Insured;
Asset Guaranty) 9,290,000 (a) 9,290,000
MASSACHUSSETTS--2.5%
Commonwealth of Massachussetts, Refunding, VRDN
3.90%, Series B (LOC; Toronto-Dominion Bank) 20,000,000 (a) 20,000,000
MICHIGAN--1.3%
Birmingham, EDR, VRDN (Brown Association Project)
4.225% (LOC; Deutsche Bank) 1,915,000 (a) 1,915,000
Michigan Housing Development Authority,
LOR, Refunding, VRDN
(Harbortown Limited Divide) 3.975% (LOC; Deutsche Bank) 1,000,000 (a) 1,000,000
Michigan Strategic Fund, SWDR, VRDN
(Grayling Generating Project) 3.90% (LOC; Barclays Bank) 7,800,000 (a) 7,800,000
MINNESOTA--.3%
Cloquet, Industrial Facilities Revenue,
VRDN (Potlatch Corp. Project)
4%, Series C (LOC; Wachovia Bank and Trust Co.) 2,300,000 (a) 2,300,000
MISSOURI--1.2%
Saint Charles County, Industrial Development Authority,
Industrial Revenue, Refunnding, VRDN
(Country Club Apartments Project)
3.84% (LOC; Lasalle National Bank) 10,000,000 (a) 10,000,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA--1.6%
Nebhelp Incorporated, Revenue,
Multiple Mode Student Loan, VRDN
3.95%, Series A (Insured; MBIA and LOC;
Student Loan Marketing Association) 12,995,000 (a) 12,995,000
NEVADA--.4%
Clark County, IDR, VRDN (Nevada Cogeneration Association 2)
3.90% (LOC; ABN-Amro Bank) 3,000,000 (a) 3,000,000
NEW HAMPSHIRE--.9%
New Hampshire Business Finance Authority, IDR, VRDN
(Keeney Manufacturing Co. Project) 3.90% (LOC; Fleet Bank) 7,100,000 (a) 7,100,000
NEW JERSEY--.9%
State of New Jersey, CP 3.60%, Series A, 12/1/1999
(Liquidity Facility: Bank of Nova Scotia,
Commerzbank and Toronto-Dominion Bank) 7,000,000 7,000,000
NEW MEXICO--1.2%
State of New Mexico, TRAN 4%, 6/30/2000 10,000,000 10,043,155
NEW YORK--5.8%
Metropolitan Transportation Authority,
Transit Facilities Revenue, CP
3.80%, Series 1, 4/6/2000 (LOC; ABN-Amro Bank) 20,000,000 20,000,000
New York City Health and Hospital Corporation,
Health System Revenue
3.75%, Series A, 2/1/2000 (LOC; Morgan Guaranty Trust Co.) 12,000,000 12,000,000
New York Power Authority, CP 3.60%, Series 4, 12/7/1999
(Liquidity Facility: The Bank of New York,
Bank of Nova Scotia, Bayerische Landesbank,
Chase Manhattan Bank, Commerzbank, Credit Locale de France,
First Union National Bank of North Carolina,
Landesbank Hessen, Morgan Guaranty Trust Co. and
State Street Bank and Trust Co.) 8,000,000 8,000,000
Port Authority of New York and New Jersey,
Special Obligation Revenue, VRDN
(Versatile Structure Obligation) 3.85%, Series 6
( Liquidity Facility; Bank of Nova Scotia) 7,000,000 (a) 7,000,000
NORTH CAROLINA--.9%
Craven County Industrial Facilities and
Pollution Control Financing Authority, VRDN
(Craven Wood Energy) 3.80%, Series C (LOC; ABN-Amro Bank) 6,900,000 (a) 6,900,000
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA--1.2%
North Dakota Housing Finance Agency, Revenue,
Housing Finance Program
(Home Mortgage) 3.20%, Series C, 4/1/2000 10,000,000 10,000,000
OHIO--3.0%
Cuyahoga County, HR, VRDN (Cleveland Clinic Foundation)
3.90%, Series A (LOC; Morgan Guaranty Trust Co.) 3,200,000 (a) 3,200,000
Ohio Housing Finance Agency, Mortgage Revenue
3.05%, Series A-2, 3/1/2000 20,000,000 20,000,000
Sharonville, IDR, VRDN (Edgecomb Metals Co. Project)
3.90% (LOC; Wells Fargo Bank) 1,150,000 (a) 1,150,000
PENNSYLVANIA--5.2%
Lancaster County Hospital Authority, Revenue,
VRDN (Masconic Homes)
3.90% ( Insured; AMBAC and Liquidity Facility; PNC Bank) 21,240,000 (a) 21,240,000
Pennsylvania Higher Education Assistance Agency,
Student Loan Revenue, VRDN:
3.95%, Series A (LOC; Student Loan Marketing Association) 12,100,000 (a) 12,100,000
3.95%, Series C (LOC; Student Loan Marketing Association) 8,900,000 (a) 8,900,000
RHODE ISLAND--1.7%
Rhode Island Housing and Mortgage Finance Corporation
(Homeowner Opportunity) 3.15%, Series B, 12/15/1999
(LOC; Transamerica Life and Insurance) 13,815,000 13,815,000
SOUTH CAROLINA--2.7%
South Carolina Jobs Economic Development Authority,
EDR, VRDN (Wellman Inc. Project)
3.90% (LOC; Wachovia Bank and Trust Co.) 14,310,000 (a) 14,310,000
York County, Industrial Revenue, VRDN (Textron Project)
5.313% (LOC; Deutsche Bank) 7,500,000 (a) 7,500,000
TENNESSEE--1.7%
Sevier County Public Building Authority,
Local Government Public Improvement, VRDN:
3.85%, Series B-2 (Insured; AMBAC and SBPA; Krediet Bank) 3,745,000 (a) 3,745,000
3.85%, Series III-C-4 (Insured; AMBAC and Liquidity Facility;
Landesbank Hessen) 10,000,000 (a) 10,000,000
TEXAS--16.5%
Brazos River Authority, PCR, Refunding,
VRDN (Texas Utility Electric Co.):
3.95%, Series A (Insured; MBIA and Liquidity Facility;
The Bank of New York) 10,100,000 (a) 10,100,000
3.95%, Series C (LOC; The Bank of New York) 10,000,000 (a) 10,000,000
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
Brazos River Harbor Naval District, VRDN
Brazoria County, Revenue:
(Dow Chemical Co. Project) 3.95% (LOC; Dow Chemical Co.) 11,400,000 (a) 11,400,000
Multi-Mode (BASF Corp. Project) 3.95% (LOC; BASF Corp.) 6,000,000 (a) 6,000,000
Harbor Revenue:
(BASF Corp. Project) 3.95% (LOC; BASF Corp.) 15,000,000 (a) 15,000,000
(Dow Chemical Co. Project) 3.95% (LOC; Dow Chemical Co.) 22,800,000 (a) 22,800,000
PanHandle-Plains Higher Education Authority Inc.,
Student Loan Revenue, VRDN
3.85%, Series A (LOC; Student Loan Marketing Association) 13,000,000 (a) 13,000,000
State of Texas, TRAN 4.50%, Series A, 8/31/2000 15,000,000 15,086,817
Texas Department of Housing and Community Affairs,
Residential Mortgage, Revenue
3.90%, Series B-2, 5/1/2000 10,000,000 10,000,000
Texas Public Finance Authority, Revenue, CP:
3.85%, Series A, 4/5/2000 10,300,000 10,300,000
3.80%, Series B, 4/10/2000 10,000,000 10,000,000
UTAH--1.7%
Intermountain Power Agency, Power Supply Revenue, CP
3.80%, Series B-4, 3/9/2000 (Liquidity Facility:
Bank of America and Bank of Nova Scotia) 13,500,000 13,500,000
VIRGINIA--1.2%
Richmond Industrial Development Authority, Revenue,
VRDN (Cogentrix of Richmond Project)
4.10%, Series A (LOC; Banque Paribas) 10,000,000 (a) 10,000,000
WASHINGTON--.6%
Port Seattle, CP 3.60%, 12/1/1999 (LOC; Commerzbank) 5,000,000 5,000,000
WISCONSIN--1.4%
Wisconsin Health and Educational Facilities Authority, Revenue,
CP (SSM Health Care)
3.65%, Series B, 12/1/1999 (Insured; MBIA and
Liquidity Facility; Bank One Corp.) 11,440,000 11,440,000
WYOMING--.4%
Lincoln County, PCR, VRDN (Exxon Project)
3.85%, Series B (LOC; Exxon Corp) 3,000,000 (a) 3,000,000
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TOTAL INVESTMENTS (cost $811,463,015) 100.1% 811,461,944
LIABILITIES, LESS CASH AND RECEIVABLES (.1%) (472,492)
NET ASSETS 100.0% 810,989,452
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Summary of Abbreviations
AMBAC American Municipal Bond PCR Pollution Control Revenue
Assurance Corporation SBPA Standby Bond
BPA Bond Purchase Agreement Purchase Agreement
COP Certificate of Participation SFMR Single Family
CP Commercial Paper Mortgage Revenue
EDR Economic Development Revenue SWDR Solid Waste
EIR Environment Improvement Revenue Disposal Revenue
FSA Financial Security Assurance TAN Tax Anticipation Notes
HR Hospital Revenue TRAN Tax and Revenue
IDR Industrial Development Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate
LOR Limited Obligation Revenue Demand Notes
MBIA Municipal Bond Investors
Assurance Insurance Corporation
</TABLE>
Summary of Combined Ratings
<TABLE>
<CAPTION>
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 97.9
AAA/AA (b) AAA/AA (b) AAA/AA (b) 2.1
100.0
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC CHANGE.
(B) NOTES WHICH ARE NOT F, MIG OR SP RATED ARE REPRESENTED BY BOND RATINGS OF THE ISSUERS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 811,463,015 811,461,944
Cash 5,120,284
Interest receivable 4,711,233
Prepaid expenses and other assets 50,723
821,344,184
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 284,202
Payable for investment securities purchased 10,000,000
Accrued expenses and other liabilities 70,530
10,354,732
- --------------------------------------------------------------------------------
NET ASSETS ($) 810,989,452
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 811,264,368
Accumulated net realized gain (loss) on investments (273,845)
Accumulated gross unrealized (depreciation) on investments (1,071)
- --------------------------------------------------------------------------------
NET ASSETS ($) 810,989,452
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(5 billion shares of $.001 par value Common Stock authorized) 813,039,904
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended November 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 14,837,441
EXPENSES:
Management fee--Note 2(a) 2,211,186
Shareholder servicing costs--Note 2(b) 350,469
Custodian fees 39,952
Directors' fees and expenses--Note 2(c) 29,632
Professional fees 25,878
Registration fees 15,910
Prospectus and shareholders' reports 15,295
Miscellaneous 11,083
TOTAL EXPENSES 2,699,405
INVESTMENT INCOME--NET 12,138,036
- --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($):
Net realized gain (loss) on investments 430
Net unrealized appreciation (depreciation) on investments (1,071)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (641)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 12,137,395
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
November 30, 1999 Year Ended
(Unaudited) May 31, 1999
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 12,138,036 25,245,090
Net realized gain (loss) from investments 430 (117,565)
Net unrealized appreciation (depreciation)
on investments (1,071) 1,071
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 12,137,395 25,128,596
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (12,138,036) (25,379,021)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 PER SHARE):
Net proceeds from shares sold 1,443,402,807 3,315,094,165
Dividends reinvested 7,006,360 14,582,815
Cost of shares redeemed (1,540,546,772) (3,332,016,091)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (90,137,605) (2,339,111)
TOTAL INCREASE (DECREASE) IN NET ASSETS (90,138,246) (2,589,536)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of period 901,127,698 903,717,234
END OF PERIOD 810,989,452 901,127,698
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following table describes 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>
<CAPTION>
Six Months Ended
November 30, 1999 Year Ended May 31,
------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C> <C>
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .014 .027 .031 .029 .031 .029
Distributions:
Dividends from
investment income--net (.014) (.027) (.031) (.029) (.031) (.029)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 2.75(a) 2.78 3.13 2.98 3.16 2.98
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .61(a) .63 .66 .65 .64 .62
Ratio of net investment income
to average net assets 2.74(a) 2.73 3.08 2.94 3.11 2.91
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets,
end of period ($ x 1,000) 810,989 901,128 903,717 1,024,649 950,598 933,311
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Municipal Money Market Fund, Inc. (the "fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified
open-end management investment company. The fund's investment objective is to
maximize current income exempt from Federal income tax to the extent 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. Premier Mutual Fund Services, Inc. is the
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; 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.
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.
(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. Interest income, adjusted for amortization of
premiums and original issue discounts on investments, is earned from settlement
date and recognized on the accrual basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Cost of investments
represent amortized cost. Under the terms of the custody agreement, the fund
received net earnings credits of $16,291 based on available cash balances left
on deposit. Income earned under this arrangement is included in interest income
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain, if any, are normally declared and paid annually,
but the fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $250,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to May 31, 1999. This amount is
calculated based on Federal income tax regulations which may differ from
financial reporting in accordance with generally accepted accounting principles.
If not applied, $1,000 of the carryover expires in fiscal 2000, $4,000 expires
in fiscal 2001, $49,000 expires in fiscal 2002, $36,000 expires in fiscal 2003,
$7,000 expires in fiscal 2004, $2,000 expires in fiscal 2005, $21,000 expires in
fiscal 2006 and $130,000 expires in fiscal 2007.
At November 30, 1999, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
NOTE 2--Management Fee and Other Transactions with Affiliates:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .50 of 1% of the value of the fund's average
daily net assets and is payable monthly.
(B) Under the Shareholder Services Plan, the fund reimburses Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, an amount not to exceed
an annual rate of .25 of 1% of the value of the fund's 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
November 30, 1999, the fund was charged $186,464 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 November 30, 1999, the fund was charged $121,382 pursuant to the transfer
agency agreement.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $4,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
The Fund
NOTES
For More Information
Dreyfus Municipal Money Market Fund, 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
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
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 910SA9911
