DREYFUS INSTITUTIONAL MONEY MARKET FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
During the last six months U.S. economic activity has declined gradually.
As might be expected, this brought about a drop in interest rates.
As far as Government securities are concerned, other factors were at work
as well. The evident determination of the Republican Congress to reduce
Government spending, and thus hopefully cut the deficit, also had its effect
on interest rates. It is too early to tell how effective the talk of budget
cutting in Washington will be in the final analysis. However, if it brings
about a lower level of Government borrowing, that would certainly be a major
factor in setting interest rates.
In this environment, we are pleased that Dreyfus Institutional Money
Market Fund has maintained competitive yields. For the six-month fiscal
period ended June 30, 1995, the Fund's Government Securities Series produced
an annualized yield of 5.30%, or an annualized effective yield of 5.43% after
compounding. The respective yields for the Money Market Series were 5.55% and
5.69% after compounding.*
We achieved these yield levels by lengthening maturities gradually during
the six-month period. This was done in anticipation of lower interest rates,
which became more and more likely as the economy gave continued signs of
slowing down.
The Federal Reserve Board, which raised interest rates seven times during
1994 and early 1995 to head off inflation, became concerned that the drop in
economic performance might turn into an actual business recession.
Accordingly, in early July the Federal Reserve reversed course and made a
modest cut in the Federal Funds rate.
As this letter is written, the economy has distinctly cooled off from the
frothy activity that prevailed last year. Thus one could say that the Fed's
policies have been successful. Inflation has been held at bay and few
observers believe that the "soft landing" will turn into a full-blown
economic recession.
However, the Federal Reserve showed laudable caution in the July
reduction of short-term rates. If more of that medicine is needed, we feel
that the Fed will not hesitate to act accordingly. Nonetheless, the central
bank must be ever watchful lest rate-cutting bring on the recurrence of
inflation which the Fed has so strenuously sought to avoid.
In our opinion, the money market has already discounted the possibility
of further Fed moves to lower interest rates. To a certain extent, that is
already built into current market prices. Our strategy under these
circumstances is to remain in the long end of the market as long as
necessary, in an effort to maintain the best possible levels of yields.
We appreciate the opportunity to put your cash to work in the money
market and will continue to exert our best efforts to obtain competitive
returns on your behalf.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Portfolio Manager
July 12, 1995
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND, Money Market Series
STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
PRINCIPAL
NEGOTIABLE BANK CERTIFICATE OF DEPOSITS-4.5% AMOUNT VALUE
_______ _______
<S> <C> <C>
Harris Trust & Savings Bank (London)
6.03%, 8/25/95
(cost $15,000,000)...................................................... $ 15,000,000 $ 15,000,000
============
COMMERCIAL PAPER-65.1%
Abbey National North America
6.50%, 1/2/96........................................................... $ 5,000,000 $ 4,840,694
AT&T Corp.
6.11%, 1/29/96.......................................................... 5,000,000 4,827,750
Budget Funding Corp.
6.04%, 8/7/95........................................................... 4,000,000 3,975,539
Chemical Banking Corp.
6.31%, 8/28/95.......................................................... 12,000,000 11,881,100
Chrysler Financial Corp.
6.28%, 8/8/95........................................................... 15,000,000 14,902,625
Ciesco L.P.
5.84%, 1/18/96.......................................................... 14,300,000 13,848,894
Den Danske Corp. Inc.
6.03%-6.35%, 8/16/95-10/10/95........................................... 14,000,000 13,826,091
Ford Motor Credit Co.
5.78%-6.33%, 1/9/96-1/12/96............................................. 14,000,000 13,565,667
General Electric Capital Corp.
6.02%, 8/30/95.......................................................... 10,000,000 9,901,333
General Electric Capital Services Inc.
6.38%, 7/10/95.......................................................... 15,000,000 14,976,712
General Motors Acceptance Corp.
6.14%-6.32%, 7/27/95-11/6/95............................................ 12,000,000 11,879,529
Goldman Sachs Group L.P.
6.28%, 8/21/95.......................................................... 5,000,000 4,956,650
Merrill Lynch & Co. Inc.
6.28%, 7/11/95.......................................................... 10,000,000 9,982,917
NationsBank Corp.
6.22%, 10/23/95......................................................... 15,000,000 14,713,575
NYNEX Corp.
6.21%-6.31%, 8/21/95-10/12/95........................................... 17,000,000 16,740,496
Sears Roebuck Acceptance Corp.
6.21%-6.26%, 7/20/95-8/21/95............................................ 14,000,000 13,933,344
SwedBank Inc.
6.13%-6.25%, 7/24/95-7/26/95............................................ 13,000,000 12,947,809
Toronto-Dominion Holdings USA Inc.
6.32%, 9/18/95.......................................................... 10,000,000 9,865,481
UBS Finance (Delaware) Inc.
6.30%, 7/3/95........................................................... 15,000,000 14,994,750
==========
TOTAL COMMERCIAL PAPER
(cost $216,560,956)..................................................... $216,560,956
DREYFUS INSTITUTIONAL MONEY MARKET FUND, Money Market Series
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
PRINCIPAL
BANK NOTES-3.0% AMOUNT VALUE
_______ _______
First National Bank of Boston
6.03%, 8/21/95
(cost $10,000,000)...................................................... $ 10,000,000 $ 10,000,000
==========
CORPORATE NOTES-8.1%
Avco Financial Services Inc.
6.28%, 4/1/96 (a)....................................................... $ 5,000,000 $ 5,000,000
Bear Stearns Companies Inc.
5.68%, 1/26/96 (a)...................................................... 12,000,000 12,000,000
Lehman Brothers Holdings Inc.
6.45%, 5/16/96 (a)...................................................... 10,000,000 10,000,000
----------
TOTAL CORPORATE NOTES
(cost $27,000,000)...................................................... $ 27,000,000
==========
U.S. GOVERNMENT AGENCIES-6.0%
Federal National Mortgage Association
Floating Rate Notes (a)
6.21%, 6/20/97
(cost $19,996,322)...................................................... $ 20,000,000 $ 19,996,322
==========
TIME DEPOSITS-1.6%
Republic National Bank of New York (London)
5.94%, 7/3/95
(cost $5,206,000)....................................................... $ 5,206,000 $ 5,206,000
==========
REPURCHASE AGREEMENTS-12.0%
Daiwa Securities America Inc.
6.13%, dated 6/30/95, due 7/3/95 in the amount of $40,020,417
(fully collateralized by $15,485,000 U.S. Treasury Bills due 11/9/95 and
$25,180,000 U.S. Treasury Notes 3.875% due 9/30/95, value $40,441,983)
(cost $40,000,000)...................................................... $ 40,000,000 $ 40,000,000
==========
TOTAL INVESTMENTS
(cost $333,763,278)........................................... 100.3% $333,763,278
====== ==========
LIABILITIES, LESS CASH AND RECEIVABLES............................ (.3%) $ (918,154)
====== ==========
NET ASSETS ................................................. 100.0% $332,845,124
====== ==========
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable interest rate - subject to periodic change.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND, Government Securities Series
STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-43.1% PURCHASE AMOUNT VALUE
_______ _______ _______
<S> <C> <C> <C>
9/7/95...................................................... 5.58% $ 10,000,000 $ 9,896,111
10/19/95.................................................... 6.08 15,000,000 14,730,347
10/26/95.................................................... 5.95 10,000,000 9,812,312
11/16/95.................................................... 5.95 5,000,000 4,889,792
11/24/95.................................................... 5.79 5,000,000 4,885,937
12/7/95..................................................... 5.62 10,000,000 9,758,630
12/21/95.................................................... 5.54 15,000,000 14,611,471
------------
TOTAL U.S. TREASURY BILLS (cost $68,584,600).................... $ 68,584,600
============
U.S. TREASURY NOTES-27.0%
8.875%, 7/17/95............................................. 5.98% $ 10,000,000 $ 10,011,382
4.625%, 8/15/95............................................. 6.00 10,000,000 9,982,422
8.50%, 8/15/95.............................................. 6.09 8,000,000 8,022,667
3.875%, 10/2/95............................................. 5.83 15,000,000 14,920,720
------------
TOTAL U.S. TREASURY NOTES (cost $42,937,191).................... $ 42,937,191
============
REPURCHASE AGREEMENTS-29.5%
Aubrey G. Lanston & Co. Inc.
dated 6/30/95, due 7/3/95 in the amount of $3,001,550
(fully collateralized by $3,075,000 U.S. Treasury
Bills due 9/7/95, value $3,041,175)............................. 6.20% $ 3,000,000 $ 3,000,000
Bear Stearns & Co.
dated 6/30/95, due 7/3/95 in the amount of $13,006,608
(fully collateralized by $13,130,000 U.S. Treasury
Notes 6% due 6/30/96, value $13,162,825)........................ 6.10 13,000,000 13,000,000
Daiwa Securities America Inc.
dated 6/30/95, due 7/3/95 in the amount of $16,008,167
(fully collateralized by $16,515,000 U.S. Treasury
Bills due 11/9/95, value $16,176,443)........................... 6.13 16,000,000 16,000,000
First Interstate Bank of California
dated 6/30/95, due 7/3/95 in the amount of $1,111,544
(fully collateralized by $1,099,000 U.S. Treasury
Notes 7.375% due 5/15/96, value $1,123,041)..................... 5.88 1,111,000 1,111,000
UBS Securities Inc.
dated 6/30/95, due 7/3/95 in the amount of $14,007,117
(fully collateralized by $10,125,000 U.S. Treasury
Notes 4.625% due 2/29/96, and $3,975,000 U.S. Treasury
Notes 7.625% due 4/30/96, value $14,280,281).................... 6.10 14,000,000 14,000,000
------------
TOTAL REPURCHASE AGREEMENTS (cost $47,111,000).................. $ 47,111,000
============
TOTAL INVESTMENTS (cost $158,632,791).................. 99.6% $ 158,632,791
============
CASH AND RECEIVABLES (NET)............................. .4% $ 616,129
============
NET ASSETS............................................ 100.0% $ 159,248,920
============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995 (UNAUDITED)
MONEY GOVERNMENT
MARKET SECURITIES
SERIES SERIES
_______ _______
<S> <C> <C>
ASSETS:
Investments in securities, at value (including repurchase agreements
of $40,000,000 and $47,111,000 for the Money Market Series and the
Government Securities Series, respectively)-Note 2(a,b)..................... $333,763,278 $158,632,791
Interest receivable..................................................... 499,085 987,369
Prepaid expenses........................................................ 24,379 7,342
___________ ___________
334,286,742 159,627,502
___________ ___________
LIABILITIES:
Due to The Dreyfus Corporation.......................................... 129,269 63,987
Due to Custodian........................................................ 1,228,527 239,040
Accrued expenses........................................................ 83,822 75,555
_________ _________
1,441,618 378,582
_________ _________
NET ASSETS.................................................................. $332,845,124 $159,248,920
=========== ===========
REPRESENTED BY:
Paid-in capital......................................................... $333,034,737 $159,333,934
Accumulated net realized (loss) on investments.......................... (189,613) (85,014)
___________ ___________
NET ASSETS at value......................................................... $332,845,124 $159,248,920
=========== ===========
Outstanding shares of Beneficial Interest, equivalent to a net asset value
per share of $1.00 for each series (unlimited number of $.001 par value
shares authorized)...................................................... 333,034,737 159,333,934
=========== ===========
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
MONEY GOVERNMENT
MARKET SECURITIES
SERIES SERIES
_______ _______
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 10,063,298 $ 4,678,298
__________ _________
EXPENSES-Note 2(c):
Management fee-Note 3(a).............................................. $ 816,821 $ 391,806
Shareholder servicing costs-Note 3(b)................................. 56,422 58,803
Custodian fees........................................................ 42,650 39,644
Professional fees..................................................... 34,934 6,539
Trustees' fees and expenses-Note 3(c)................................. 24,851 10,245
Registration fees..................................................... 17,341 7,933
Prospectus and shareholders' reports.................................. 3,243 1,513
Miscellaneous......................................................... 1,478 4,019
___________ __________
TOTAL EXPENSES.................................................... 997,740 520,502
___________ __________
INVESTMENT INCOME-NET....................................................... 9,065,558 4,157,796
NET REALIZED GAIN ON INVESTMENTS-Note 2(b).................................. 57,320 37,662
____________ __________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 9,122,878 $ 4,195,458
=========== ===========
</TABLE>
See independent accountants' review report and 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 SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995
1994 (UNAUDITED) 1994 (UNAUDITED)
_________ __________ _________ ___________
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income-net........... $ 12,528,629 $ 9,065,558 $ 3,946,457 $ 4,157,796
Net realized gain (loss) on investments (11,498) 57,320 8,900 37,662
_________ __________ _________ ___________
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS. 12,517,131 9,122,878 3,955,357 4,195,458
_________ __________ _________ ___________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net........... (12,528,629) (9,065,558) (3,946,457) (4,157,796)
_________ __________ _________ ___________
BENEFICIAL INTEREST TRANSACTIONS
($1.00 per share):
Net proceeds from shares sold... 3,974,164,559 2,400,615,893 451,323,605 341,836,559
Dividends reinvested............ 2,001,825 1,912,981 1,142,313 1,365,072
Cost of shares redeemed......... (3,967,506,908) (2,432,566,415) (466,767,213) (304,271,530)
_________ __________ _________ ___________
INCREASE (DECREASE) IN NET
ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS..... 8,659,476 (30,037,541) (14,301,295) 38,930,101
_________ __________ _________ ___________
TOTAL INCREASE (DECREASE) IN
NET ASSETS.......... 8,647,978 (29,980,221) (14,292,395) 38,967,763
NET ASSETS:
Beginning of period............. 354,177,367 362,825,345 134,573,552 120,281,157
_________ __________ _________ ___________
End of period................... $ 362,825,345 $ 332,845,124 $ 120,281,157 $ 159,248,920
========= ========== ========== ============
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS INSTITUTIONAL MONEY MARKET FUND, Money Market Series
FINANCIAL HIGHLIGHTS
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 period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1995
______________________________________________
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
____ ____ ____ ____ _____ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ .9988 $ .9987 $ .9992 $ .9993 $ .9993 $ .9993
____ ____ ____ ____ _____ ______
INVESTMENT OPERATIONS:
Investment income-net............... .0769 .0570 .0345 .0272 .0359 .0275
Net realized and unrealized gain (loss)
on investments.................... (.0001) .0005 .0001 - - .0001
____ ____ ____ ____ _____ ______
TOTAL FROM INVESTMENT OPERATIONS.. .0768 .0575 .0346 .0272 .0359 .0276
____ ____ ____ ____ _____ ______
DISTRIBUTIONS;
Dividends from investment income-net (.0769) (.0570) (.0345) (.0272) (.0359) (.0275)
____ ____ ____ ____ _____ ______
Net asset value, end of period...... $ .9987 $ .9992 $ .9993 $ .9993 $ .9993 $ .9994
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................. 7.99% 5.85% 3.51% 2.76% 3.65% 5.61%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .50% .60% .63% .63% .63% .61%*
Ratio of net investment income to
average net assets................ 7.72% 5.73% 3.48% 2.72% 3.59% 5.55%*
Decrease reflected in above expense ratios
due to undertakings by the Manager .08% - - - - -
Net Assets, end of period (000's Omitted) $401,461 $354,090 $329,574 $354,177 $362,825 $332,845
</TABLE>
* Annualized.
See independent accountants' review report and notes to financial statements.
[CAPTION]
DREYFUS INSTITUTIONAL MONEY MARKET FUND, Government Securities Series
FINANCIAL HIGHLIGHTS (CONTINUED)
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 period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1995
__________________________
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
____ ____ ____ ____ _____ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ .9985 $ .9989 $ .9987 $ .9992 $ .9990 $ .9990
____ ____ ____ ____ _____ ______
INVESTMENT OPERATIONS:
Investment income-net............... .0758 .0557 .0338 .0260 .0343 .0263
Net realized and unrealized gain (loss)
on investments.................... .0004 (.0002) .0005 (.0002) - .0005
____ ____ ____ ____ _____ ______
TOTAL FROM INVESTMENT OPERATIONS.. .0762 .0555 .0343 .0258 .0343 .0268
____ ____ ____ ____ _____ ______
DISTRIBUTIONS;
Dividends from investment income-net (.0758) (.0557) (.0338) (.0260) (.0343) (.0263)
____ ____ ____ ____ _____ ______
Net asset value, end of period...... $ .9989 $ .9987 $ .9992 $ .9990 $ .9990 $ .9995
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................. 7.85% 5.71% 3.44% 2.63% 3.49% 5.36%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .50% .65% .64% .65% .69% .66%*
Ratio of net investment income to
average net assets................ 7.58% 5.64% 3.42% 2.61% 3.40% 5.31%*
Decrease reflected in above expense ratios
due to undertakings by the Manager .10% - - - - -
Net Assets, end of period (000's Omitted) $246,174 $174,173 $192,141 $134,574 $120,281 $159,249
</TABLE>
* Annualized.
See independent accountants' review report and notes to financial statements.
DREYFUS INSTITUTIONAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
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 of $1.00.
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 among 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.
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.
DREYFUS INSTITUTIONAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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 Internal Revenue 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 $247,000 available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
December 31, 1994. If not applied, $155,000 of the carryover expires in 1995,
$80,000 expires in 1996 and $12,000 expires in 2002.
The Government Securities Series has an unused capital loss carryover of
approximately $123,000 available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
December 31, 1994. If not applied, $35,000 of the carryover expires in 1995,
$24,000 expires in 1996 and $64,000 expires in 1997.
At June 30, 1995, 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 the
expense limitation of any state having jurisdiction over the Fund for any
full year. The most stringent state expense limitation applicable to each
series presently requires reimbursement of expenses in any full year that
such expenses (exclusive of distribution expenses and certain expenses as
described above) exceed 2 1/2% of the first $30 million, 2% of the next $70
million and 1 1/2% of the excess over $100 million of the average value of
each series' net assets in accordance with California "blue sky" regulations.
No expense reimbursement was required pursuant to the Agreement for the six
months ended June 30, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, each series
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
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 maintenan
ce of shareholder accounts. During the six months ended June 30, 1995, the
Money Market Series and the Government Securities Series were charged an
aggregate of $10,230 and $44,495, respectively, pursuant to the Shareholder
Services Plan.
(C) Each trustee 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.
DREYFUS INSTITUTIONAL MONEY MARKET FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS INSTITUTIONAL MONEY MARKET FUND
We have reviewed the accompanying statement of assets and liabilities,
including the statements of investments, of Dreyfus Institutional Money
Market Fund (comprising, respectively, the Money Market Series and the
Government Securities Series) as of June 30, 1995, and the related statements
of operations and changes in net assets and financial highlights for the six
month period ended June 30, 1995. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1994 and financial highlights for each of the five years in the
period ended December 31, 1994 and in our report dated February 2, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
August 3, 1995
[Dreyfus lion "d" logo]
DREYFUS INSTITUTIONAL
MONEY MARKET FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 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. 179/195SA956
[Dreyfus logo]
Institutional
Money Market
Fund
Semi-Annual
Report
June 30, 1995
