PRESIDENT'S LETTER
Dear Shareholder:
For the twelve months ended December 31, 1993, the yield on the Money
Market Series of Dreyfus Institutional Money Market Fund was 2.72%. This
is the equivalent of an effective yield of 2.76% after taking into account
the effect of compounding.*
The yield of the Government Securities Series for the same period was
2.60% with an effective yield of 2.63% 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
President
January 18, 1994
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested
monthly.
DREYFUS INSTITUTIONAL MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS DECEMBER 31, 1993
<TABLE>
<CAPTION>
PRINCIPAL
COMMERCIAL PAPER-55.6% AMOUNT VALUE
------------- -------------
<S> <C> <C>
Abbey National North America
3.43%, 6/1/94.............................................................. $ 5,000,000 $ 4,929,324
Bankers Trust New York Corp.
3.25%, 3/18/94............................................................. 15,000,000 14,898,667
CS First Boston Group Inc.
3.38%, 2/18/94............................................................. 15,000,000 14,932,800
Central Hispano North American Capital Corp.
3.34%, 1/10/94............................................................. 15,000,000 14,987,625
Den Danske Corp. Inc.
3.36%, 2/2/94.............................................................. 10,000,000 9,970,400
General Electric Capital Corp.
3.23%, 1/18/94............................................................. 15,000,000 14,977,687
General Electric Capital Services Inc.
3.25%, 1/3/94.............................................................. 10,000,000 9,998,194
General Motors Acceptance Corp.
3.41-3.44%, 2/3/94-2/22/94................................................. 15,000,000 14,935,420
Goldman Sachs Group L.P.
3.41%, 6/28/94............................................................. 15,000,000 14,753,025
Indosuez North America Inc.
3.43%, 1/27/94............................................................. 9,000,000 8,978,095
Merrill Lynch & Co. Inc.
3.28%, 3/14/94............................................................. 15,000,000 14,903,100
Morgan Stanley Group Inc.
3.30%, 1/3/94.............................................................. 10,000,000 9,998,167
NationsBank Corp.
3.54%, 3/29/94............................................................. 10,000,000 9,916,625
Nordbanken North America Inc.
3.40-3.47%, 1/14/94-2/15/94................................................ 14,000,000 13,968,043
SwedBank Inc.
3.50%, 2/28/94............................................................. 15,000,000 14,917,350
UBS Finance (Delaware) Inc.
3.25%, 1/3/94.............................................................. 10,000,000 9,998,194
-------------
TOTAL COMMERCIAL PAPER (cost $197,062,716)..................................... $ 197,062,716
=============
BANK NOTES-17.8%
First National Bank of Chicago
3.18%, 10/26/94............................................................ $ 10,000,000(a)$ 10,000,000
Huntington National Bank
3.68%, 1/21/94............................................................. 10,000,000 10,000,045
Morgan (J.P.) Delaware
3.70%, 1/14/94............................................................. 15,000,000 15,002,111
PNC Bank
3.65-3.70%, 7/28/94-9/5/94................................................. 15,000,000 15,016,126
Society National Bank
3.49%, 1/14/94............................................................. 8,000,000(a) 7,999,858
3.60%, 2/1/94.............................................................. 5,000,000 4,999,912
-------------
TOTAL BANK NOTES (cost $63,018,052)............................................ $ 63,018,052
=============
DREYFUS INSTITUTIONAL MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
PRINCIPAL
CORPORATE NOTES-11.1% AMOUNT VALUE
------------- -------------
Bear Stearns Companies Inc.
3.49%, 9/13/94............................................................. $ 15,000,000(a)$ 15,000,000
Ford Motor Credit Co.
5.50%, 12/12/94............................................................ 5,000,000 5,077,649
General Motors Acceptance Corp.
8.30%, 7/18/94............................................................. 4,000,000 4,092,818
Lehman Brothers Holdings Inc.
3.58%, 5/19/94............................................................. 15,000,000 (a) 15,000,000
-------------
TOTAL CORPORATE NOTES (cost $39,170,467)....................................... $ 39,170,467
=============
U.S. GOVERNMENT AGENCIES-4.6%
Federal National Mortgage Association, Discount Notes
3.56-3.60%, 10/13/94-11/22/94
(cost $16,182,184)......................................................... $ 16,700,000 $ 16,182,184
=============
TIME DEPOSIT-2.3%
Republic National Bank of New York (London)
2.38%, 1/3/94
(cost $8,226,000).......................................................... $ 8,226,000 $ 8,226,000
=============
REPURCHASE AGREEMENTS-9.0%
Kidder, Peabody & Co. Inc.
3.20%, dated 12/31/93, due 1/3/94 in the amount of $20,005,333
(fully collateralized by $20,690,000 U.S. Treasury Bills due
6/2/94 to 11/17/94, value $20,305,439)..................................... $ 20,000,000 $ 20,000,000
Lehman Government Securities Inc.
3.00%, dated 12/31/93, due 1/3/94 in the amount of $11,764,941
(fully collateralized by $12,300,000 U.S. Treasury Bills due
11/17/94, value $11,921,621)............................................... 11,762,000 11,762,000
-------------
TOTAL REPURCHASE AGREEMENTS (cost $31,762,000)................................. $ 31,762,000
=============
TOTAL INVESTMENTS (cost $355,421,419)................................... 100.4% $ 355,421,419
====== =============
LIABILITIES, LESS CASH AND RECEIVABLES.................................. (.4%) $ (1,244,052)
====== =============
NET ASSETS.............................................................. 100.0% $ 354,177,367
====== =============
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable interest rate - subject to periodic change.
</TABLE>
See notes to financial statements.
DREYFUS INSTITUTIONAL MONEY MARKET FUND, GOVERNMENT SECURITIES SERIES
STATEMENT OF INVESTMENTS DECEMBER 31, 1993
<TABLE>
<CAPTION>
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-14.7% PURCHASE AMOUNT VALUE
---------- ------------- -------------
<S> <C> <C> <C>
5/5/94........................................................ 3.21% $ 15,000,000 $ 14,839,403
6/2/94........................................................ 3.23 5,000,000 4,933,394
-------------
TOTAL U.S. TREASURY BILLS (cost $19,772,797)...................... $ 19,772,797
=============
U.S. TREASURY NOTES-42.0%
7.00%, 1/15/94................................................ 3.23% $ 10,000,000 $ 10,016,636
4.875%, 1/31/94............................................... 3.45 5,000,000 5,005,485
5.375%, 2/28/94............................................... 3.33 3,000,000 3,009,487
5.375%, 4/30/94............................................... 3.20 5,000,000 5,034,395
4.25%, 7/31/94................................................ 3.39 15,000,000 15,069,412
6.875%, 8/15/94............................................... 3.33 10,000,000 10,213,469
8.625%, 8/15/94............................................... 3.41 8,000,000 8,251,159
-------------
TOTAL U.S. TREASURY NOTES (cost $56,600,043)...................... $ 56,600,043
=============
REPURCHASE AGREEMENTS-42.3%
Bear, Stearns & Co. Inc.
dated 12/31/93, due 1/3/94 in the amount of $15,004,000
(fully collateralized by $15,670,000 U.S. Treasury
Strips due 11/15/94, value $15,190,106)....................... 3.20% $ 15,000,000 $ 15,000,000
First Interstate Bank of California
dated 12/31/93, due 1/3/94 in the amount of $7,875,739
(fully collateralized by $7,965,000 U.S. Treasury
Bills due 1/6/94, value $7,961,787)........................... 2.65 7,874,000 7,874,000
Kidder, Peabody & Co. Inc.
dated 12/31/93, due 1/3/94 in the amount of $19,005,067
(fully collateralized by $19,751,000 U.S. Treasury
Bills due from 6/2/94 to 10/20/94, value $19,298,199)......... 3.20 19,000,000 19,000,000
Yamaichi International (America) Inc.
dated 12/31/93, due 1/3/94 in the amount of $15,004,000
(fully collateralized by $14,680,000 U.S. Treasury
Notes 8.50% due 3/31/94, value $15,189,162)................... 3.20 15,000,000 15,000,000
-------------
TOTAL REPURCHASE AGREEMENTS (cost $56,874,000).................... $ 56,874,000
=============
TOTAL INVESTMENTS (cost $133,246,840)...................... 99.0% $ 133,246,840
====== =============
CASH AND RECEIVABLES (NET)................................. 1.0% $ 1,326,712
====== =============
NET ASSETS................................................. 100.0% $ 134,573,552
====== =============
See notes to financial statements.
</TABLE>
DREYFUS INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
DECEMBER 31, 1993
MONEY GOVERNMENT
MARKET SECURITIES
SERIES SERIES
------------- -------------
ASSETS:
<S> <C> <C>
Investments in securities, at value (including repurchase agreements of
$56,874,000 for the Government Securities Series)-Note 2(a,b).......... $ 355,421,419 $133,246,840
Cash....................................................................... __ 115,816
Interest receivable........................................................ 1,286,956 1,312,522
Prepaid expenses........................................................... 39,078 8,144
------------- -------------
356,747,453 134,683,322
------------- -------------
LIABILITIES:
Due to The Dreyfus Corporation............................................. 153,992 65,039
Due to Custodian........................................................... 2,330,627 __
Accrued expenses........................................................... 85,467 44,731
------------- -------------
2,570,086 109,770
------------- -------------
NET ASSETS..................................................................... $ 354,177,367 $ 134,573,552
============= =============
REPRESENTED BY:
Paid-in capital............................................................ $ 354,412,802 $134,705,128
Accumulated net realized (loss) on investments............................. (235,435) (131,576)
------------- -------------
NET ASSETS at value applicable to 354,412,802 and 134,705,128 shares
outstanding (unlimited number of $.001 par value shares of
Beneficial Interest authorized)............................................ $ 354,177,367 $ 134,573,552
============= =============
NET ASSET VALUE, offering and redemption price per share:
Money Market Series
($354,177,367 / 354,412,802 shares).................................... $1.00
=====
Government Securities Series
($134,573,552 / 134,705,128 shares).................................... $1.00
=====
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1993
GOVERNMENT
MONEY MARKET SECURITIES
SERIES SERIES
------------- -------------
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME............................................................ $ 12,559,649 $ 5,502,540
------------- -------------
EXPENSES-Note 2(c):
Management fee-Note 3(a)............................................... $ 1,876,774 $ 844,481
Shareholder servicing costs-Note 3(b).................................. 252,996 104,754
Custodian fees......................................................... 84,559 86,604
Registration fees...................................................... 42,077 16,728
Professional fees...................................................... 39,893 16,448
Trustees' fees and expenses-Note 3(c).................................. 31,779 14,425
Prospectus and shareholders' reports................................... 9,652 6,768
Miscellaneous.......................................................... 10,343 4,195
------------- -------------
TOTAL EXPENSES.................................................... 2,348,073 1,094,403
------------- -------------
INVESTMENT INCOME-NET.......................................................... 10,211,576 4,408,137
NET REALIZED GAIN ON INVESTMENTS............................................... 7,405 13,181
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 10,218,981 $ 4,421,318
============= =============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET SERIES GOVERNMENT SECURITIES SERIES
----------------------------- -----------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
----------------------------- -----------------------------
1992 1993 1992 1993
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income-net...................................... $ 13,650,377 $ 10,211,576 $ 8,354,015 $ 4,408,137
Net realized gain on investments........................... 32,651 7,405 81,639 13,181
------------- ------------- ------------- -------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.......................... 13,683,028 10,218,981 8,435,654 4,421,318
------------- ------------- ------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net...................................... (13,650,377) (10,211,576) (8,354,015) (4,408,137)
------------- ------------- ------------- -------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold.............................. 4,369,666,648 5,849,191,027 1,179,715,052 695,721,400
Dividends reinvested....................................... 4,001,629 2,014,356 1,865,660 879,189
Cost of shares redeemed.................................... (4,398,216,961) (5,826,609,515) (1,163,694,834) (754,181,180)
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS................... (24,548,684) 24,595,868 17,885,878 (57,580,591)
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS................................. (24,516,033) 24,603,273 17,967,517 (57,567,410)
NET ASSETS:
Beginning of year.......................................... 354,090,127 329,574,094 174,173,445 192,140,962
------------- ------------- ------------- -------------
End of year................................................ $ 329,574,094 $ 354,177,367 $ 192,140,962 $ 134,573,552
============= ============= ============= =============
See notes to financial statements.
</TABLE>
DREYFUS INSTITUTIONAL MONEY MARKET FUND, MONEY MARKET SERIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Contained below is per share operating performance data for a share of Beneficial Interest outstanding,
total investment return, ratios to average net assets and other supplemental data for 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................. $.9992 $.9988 $.9987 $.9992 $.9993
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net.............................. .0878 .0769 .0570 .0345 .0272
Net realized and unrealized gain (loss)
on investments................................ (.0004) (.0001) .0005 .0001 --
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS............... .0874 .0768 .0575 .0346 .0272
------- ------- ------- ------- -------
DISTRIBUTIONS;
Dividends from investment income-net............... (.0878) (.0769) (.0570) (.0345) (.0272)
------- ------- ------- ------- -------
Net asset value, end of year....................... $ .9988 $ .9987 $ .9992 $ .9993 $ .9993
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 9.14% 7.99% 5.85% 3.51% 2.76%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............ .50% .50% .60% .63% .63%
Ratio of net investment income to average net
assets............................................. 8.79% 7.72% 5.73% 3.48% 2.72%
Decrease reflected in above expense ratios due to
undertakings by the Manager.................... .07% .08% -- -- --
Net Assets, end of year (000's Omitted)............ $477,113 $401,461 $354,090 $329,574 $354,177
See notes to financial statements.
</TABLE>
DREYFUS INSTITUTIONAL MONEY MARKET FUND, GOVERNMENT SECURITIES SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Contained below is per share operating performance data for a share of Beneficial Interest outstanding,
total investment return, ratios to average net assets and other supplemental data for 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 $.9985 $.9989 $.9987 $ .9992
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net.............................. .0855 .0758 .0557 .0338 .0260
Net realized and unrealized gain (loss) on
investments.................................... (.0006) .0004 (.0002) .0005 (.0002)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS............... .0849 .0762 .0555 .0343 .0258
------- ------- ------- ------- -------
DISTRIBUTIONS;
Dividends from investment income-net............... (.0855) (.0758) (.0557) (.0338) (.0260)
------- ------- ------- ------- -------
Net asset value, end of year....................... $.9985 $.9989 $.9987 $.9992 $.9990
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 8.90% 7.85% 5.71% 3.44% 2.63%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............ .50% .50% .65% .64% .65%
Ratio of net investment income to average
net assets..................................... 8.54% 7.58% 5.64% 3.42% 2.61%
Decrease reflected in above expense ratios due to
undertakings by the Manager.................... .11% .10% -- -- --
Net Assets, end of year (000's Omitted)............ $214,481 $246,174 $174,173 $192,141 $134,574
See notes to financial statements.
</TABLE>
DREYFUS INSTITUTIONAL MONEY MARKET FUND
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 Beneficial Interest:
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 Trustees 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
custodians 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 $235,000 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 1994. If
not applied, $155,000 of the carryover expires in 1995, and $80,000
expires in 1996.
DREYFUS INSTITUTIONAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Government Securities Series has an unused capital loss carryover
of approximately $131,000 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, $43,000 of the carryover
expires in 1995, $24,000 expires in 1996 and $64,000 expires in 1997.
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 1/2 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, each series
reimburses the Distributor an amount not to exceed an annual rate of .25
of 1% of the value of a series' 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 $88,393 and
$49,489, respectively, pursuant to the Shareholder Services Plan.
(C) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each trustee
who is not an "affiliated person" receives 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 INSTITUTIONAL MONEY MARKET FUND
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS INSTITUTIONAL MONEY MARKET FUND
We have audited the accompanying statement of assets and liabilities
of Dreyfus Institutional Money Market Fund (comprising, respectively, the
Money Market Series and the Government Securities Series) including the
statements 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 custodians 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 Institutional Money Market Fund, 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.
New York, New York
February 9, 1994
(Dreyfus Lion "D" Logo)
DREYFUS INSTITUTIONAL
MONEY MARKET FUND
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 179/195AR9312
(Dreyfus Logo)
Institutional
Money Market
Fund
Annual Report
December 31, 1993
