LETTER TO SHAREHOLDERS
Dear Shareholder:
Money market yields were in a rising pattern for most of last year, ever
since the Federal Reserve Board began a series of six steps in February, 1994
to head off inflation by raising short-term interest rates.
During the year, the Federal Funds rate was boosted by 250 basis points.
In just the last six months, the increase has amounted to 125 basis points.
The year's returns for Dreyfus Institutional Money Market Fund reflect
the much lower level of interest rates when the year began, as well as the
continual rises since then.
For the fiscal year ended December 31, 1994, the yield of Dreyfus
Institutional Money Market Fund, Money Market Series was 3.59% and the
effective yield was 3.65% after taking into account the effect of
compounding. For the Government Securities Series, the yield was 3.43% and
the effective yield was 3.49% after taking into account the effect of
compounding. It may be of interest to note that in the latest quarter, the
three months ended December 31, 1994, the annualized yield for the Money
Market Series was 4.54% and for the Government Series was 4.40%. The
annualized effective yield after taking into account the effect of
compounding for the two Series was 4.63% and 4.49%, respectively.*
The performance of the U.S. economy last year was most impressive, in
spite of slow retail sales during the Christmas season. During the year, we
saw a robust housing market, booming automobile sales, notable expansion in
new jobs, a drop in the unemployment rate, and expanding industrial
production. All this was accomplished with a very modest level of inflation,
whether you measure inflation by the existing numbers or revise it downward,
as has been suggested by the Chairman of the Federal Reserve Board, Alan
Greenspan. In January, Mr. Greenspan advised Congress that in his opinion the
currently published inflation numbers overstate the Consumer Price Index by
.05 to 1.5%.
Recently, the fiscal problems of Mexico have unsettled financial markets.
However, the U.S. rescue plan appears to have had a calming effect.
All of this has an impact on money market rates. Soon, the Federal
Reserve will have to decide whether another increase in the Federal Funds
rate is required. The continued expansion of the American economy argues for
further tightening of interest rates. On the other hand, the financial
problems in Mexico and elsewhere in Latin America might persuade the Fed to
take a more cautious approach.
For most of the year, we maintained a fairly short maturity average in
anticipation of the increases in interest rates. That is still our posture.
As always, we will be watching the economic developments closely and will
not hesitate to make portfolio adjustments as required.
As announced by The Dreyfus Corporation this month, Joseph S. DiMartino
has resigned as President of The Dreyfus Corporation and as portfolio manager
of Dreyfus Institutional Money Market Fund in order to assume new duties as
Chairman of the Boards of certain Dreyfus mutual funds. I have worked closely
with Mr. DiMartino for the past thirteen years and currently manage other
Dreyfus money market funds.
I am committed to continuing the superior investment service this Fund
has provided to its investors in the past and look forward to serving your
investment needs in the future.
Sincerely,
(Patricia A. Larkin Signature)
Patricia A. Larkin
Portfolio Manager
January 17, 1995
New York, N.Y.
* Annualized effective yield and effective yield are based upon dividends
declared daily and reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND, Money Market Series
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT--2.7% AMOUNT VALUE
-------------- -------------
<S> <C> <C>
Harris Trust & Savings Bank (London)
5.90%, 2/14/95
(cost $9,997,499)....................................................... $ 10,000,000 $ 9,997,499
--------------
--------------
COMMERCIAL PAPER--45.0%
Ford Motor Credit Co.
5.90%-6.49%, 2/21/95-4/11/95............................................ $ 15,000,000 $ 14,829,356
General Electric Capital Corp.
6.00%, 3/28/95.......................................................... 15,000,000 14,789,300
General Motors Acceptance Corp.
5.47%-6.07%, 1/17/95-3/22/95............................................ 15,000,000 14,909,889
Generale Bank Inc.
5.23%, 1/12/95.......................................................... 7,000,000 6,989,006
Goldman Sachs Group L.P.
5.12%, 1/5/95........................................................... 10,000,000 9,994,411
ITT Corp.
5.83%, 1/13/95.......................................................... 15,000,000 14,971,100
ITT Financial Corp.
5.47%-6.13%, 1/17/95-4/3/95............................................. 15,000,000 14,899,333
Morgan Stanley Group Inc.
6.26%, 1/5/95........................................................... 14,000,000 13,990,278
NYNEX Corp.
5.12%, 1/10/95.......................................................... 5,000,000 4,993,712
Paine Webber Group Inc.
5.25%, 1/3/95........................................................... 13,000,000 12,996,280
Sears Roebuck Acceptance Corp.
5.56%-6.04%, 1/13/95-2/27/95............................................ 15,000,000 14,896,650
SwedBank Inc.
6.04%, 3/24/95.......................................................... 10,000,000 9,865,156
UBS Finance (Delaware) Inc.
6.25%, 1/3/95........................................................... 15,000,000 14,994,792
--------------
TOTAL COMMERCIAL PAPER
(cost $163,119,263)..................................................... $163,119,263
============
BANK NOTES--5.0%
FCC National Bank Delaware
5.82%, 3/14/95 (a)...................................................... $ 10,000,000 $ 9,999,008
Huntington National Bank
4.92%, 1/20/95.......................................................... 4,000,000 3,996,856
Society National Bank
5.08%, 1/20/95.......................................................... 4,000,000 3,996,788
--------------
TOTAL BANK NOTES
(cost $17,992,652)...................................................... $ 17,992,652
============
DREYFUS INSTITUTIONAL MONEY MARKET FUND, Money Market Series
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
CORPORATE NOTE--4.1% AMOUNT VALUE
-------------- ------------
Pepsico Inc.
3.57%, 2/3/95
(cost $14,999,118)...................................................... $ 15,000,000 $ 14,999,118
============
U.S. GOVERNMENT AGENCY--2.8%
Federal National Mortgage Association, Consolidated
Systemwide, Floating Rate Bonds (a)
5.97%, 2/14/97
(cost $10,000,000)...................................................... $ 10,000,000 $ 10,000,000
============
TIME DEPOSITS--12.5%
Chase Manhattan Bank (London)
5.75%, 1/3/95........................................................... $ 15,000,000 $15,000,000
Chemical Bank (London)
6.00%, 1/3/95........................................................... 15,000,000 15,000,000
Republic National Bank of New York (London)
5.00%, 1/3/95........................................................... 15,340,000 15,340,000
-------------
TOTAL TIME DEPOSITS
(cost $45,340,000)...................................................... $ 45,340,000
============
REPURCHASE AGREEMENTS--28.1%
Barclays de Zoete Wedd Securities Inc.
4.00%, dated 12/30/94, due 1/3/95 in the amount of
$5,002,222 (fully collateralized by $5,062,000 U.S.
Treasury Notes 4.625% due 8/15/95, value $5,080,518).................... $ 5,000,000 $ 5,000,000
Daiwa Securities America Inc.
5.70%, dated 12/30/94, due 1/3/95 in the amount of
$17,010,767 (fully collateralized by $17,020,000 U.S.
Treasury Notes 3.875% due 2/28/95, value $17,205,187)................... 17,000,000 17,000,000
Eastbridge Capital Inc.
6.00%, dated 12/30/94, due 1/3/95 in the amount of
$40,026,667 (fully collateralized by $42,355,000 U.S.
Treasury Bills due 6/1/95, value $41,246,146)........................... 40,000,000 40,000,000
Yamaichi International (America) Inc.
6.10%, dated 12/30/94, due 1/3/95 in the amount of
$40,027,111 (fully collateralized by $40,670,000 U.S.
Treasury Notes 4.125% due 5/31/95, value $40,445,421)................... 40,000,000 40,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(cost $102,000,000)..................................................... $102,000,000
============
TOTAL INVESTMENTS
(cost $363,448,532)............................................ 100.2% $363,448,532
====== =============
LIABILITIES, LESS CASH AND RECEIVABLES............................. (.2%) $ (623,187)
====== =============
NET ASSETS ................................................... 100.0% $362,825,345
====== =============
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable interest rate - subject to periodic change.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND, Government Securities Series
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS--16.3% PURCHASE AMOUNT VALUE
---------- --------- ----------
<S> <C> <C> <C>
3/16/95.................................................... 5.03% $ 10,000,000 $ 9,899,175
5/25/95.................................................... 6.00 10,000,000 9,767,200
---------- --------- ----------
TOTAL U.S. TREASURY BILLS
(cost $19,666,375)......................................... $ 19,666,375
============
U.S. TREASURY NOTES--39.0%
3.875%, 2/28/95
(cost $46,873,993)......................................... 5.46% $ 47,000,000 $ 46,873,993
============
REPURCHASE AGREEMENTS--35.4%
Daiwa Securities America Inc.
dated 12/30/94, due 1/3/95 in the amount of $14,009,100
(fully collateralized by $14,260,000 U.S. Treasury
Notes 3.875% due 8/31/95, value $14,170,063).............. 5.85% $ 14,000,000 $ 14,000,000
Eastbridge Capital Inc.
dated 12/30/94, due 1/3/95 in the amount of $12,008,333
(fully collateralized by $12,710,000 U.S. Treasury
Bills due 6/1/95, value $12,377,257)....................... 6.25 12,000,000 12,000,000
First Interstate Bank of California
dated 12/30/94, due 1/3/95 in the amount of $4,542,774
(fully collateralized by $4,451,000 U.S. Treasury
Notes 11.25% due 5/15/95, value $4,596,672)................ 5.50 4,540,000 4,540,000
Yamaichi International (America) Inc.
dated 12/30/94, due 1/3/95 in the amount of $12,008,200
(fully collateralized by $12,090,000 U.S. Treasury
Notes 4.25% due 7/31/95, value $12,134,023)................ 6.15 12,000,000 12,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(cost $42,540,000)......................................... $ 42,540,000
============
TOTAL INVESTMENTS (cost $109,080,368).............. 90.7% $109,080,368
===== =============
CASH AND RECEIVABLES (NET)......................... 9.3% $11,200,789
===== =============
NET ASSETS .................................. 100.0% $120,281,157
===== =============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1994
MONEY GOVERNMENT
MARKET SECURITIES
SERIES SERIES
-------------- -------------
<S> <C> <C>
ASSETS:
Investments in securities, at value (including repurchase agreements
of $102,000,000 and $42,540,000 for the Money Market Series
and the Government Securities Series, respectively)_Note 2(a,b)....... $363,448,532 $109,080,368
Cash.................................................................... -- 438,205
Interest receivable..................................................... 543,242 861,831
Receivable for investment securities sold............................... -- 9,999,747
Prepaid expenses........................................................ 27,000 3,976
-------------- -------------
364,018,774 120,384,127
-------------- -------------
LIABILITIES:
Due to The Dreyfus Corporation.......................................... 138,975 50,604
Due to Custodian........................................................ 942,996 --
Accrued expenses........................................................ 111,458 52,366
-------------- -------------
1,193,429 102,970
-------------- -------------
NET ASSETS ..................................................... $362,825,345 $120,281,157
============= ============
REPRESENTED BY:
Paid-in capital......................................................... $363,072,278 $120,403,833
Accumulated net realized (loss) on investments.......................... (246,933) (122,676)
-------------- -------------
NET ASSETS at value applicable to 363,072,278 and 120,403,833 shares
outstanding (unlimited number of $.001 par value shares of
Beneficial Interest authorized)......................................... $362,825,345 $120,281,157
============= ============
NET ASSET VALUE, offering and redemption price per share:
Money Market Series
($362,825,345 / 363,072,278 shares)................................... $1.00
=====
Government Securities Series
($120,281,157 / 120,403,833 shares)................................... $1.00
=====
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994
MONEY GOVERNMENT
MARKET SECURITIES
SERIES SERIES
------------- ------------
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $14,736,847 $4,742,616
------------- ------------
EXPENSES--Note 2(c):
Management fee_Note 3(a).............................................. $ 1,745,382 $ 581,006
Shareholder servicing costs_Note 3(b)................................. 230,576 80,433
Custodian fees........................................................ 87,988 80,782
Professional fees..................................................... 52,649 24,377
Trustees' fees and expenses_Note 3(c)................................. 38,108 14,788
Registration fees..................................................... 30,159 7,432
Prospectus and shareholders' reports.................................. 9,410 3,979
Miscellaneous......................................................... 13,946 3,362
------------- ------------
TOTAL EXPENSES.................................................... 2,208,218 796,159
------------- ------------
INVESTMENT INCOME--NET...................................................... 12,528,629 3,946,457
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 2(b).......................... (11,498) 8,900
------------- ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $12,517,131 $3,955,357
=========== ===========
</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,
----------------------------- -------------------------------
1993 1994 1993 1994
-------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income_net.................. $ 10,211,576 $ 12,528,629 $ 4,408,137 $ 3,946,457
Net realized gain (loss) on investments 7,405 (11,498) 13,181 8,900
-------------- -------------- ------------- -------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........ 10,218,981 12,517,131 4,421,318 3,955,357
-------------- -------------- ------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income_net.................. (10,211,576) (12,528,629) (4,408,137) (3,946,457)
-------------- -------------- ------------- -------------
BENEFICIAL INTEREST TRANSACTIONS
($1.00 per share):
Net proceeds from shares sold.......... 5,849,191,027 3,974,164,559 695,721,400 451,323,605
Dividends reinvested................... 2,014,356 2,001,825 879,189 1,142,313
Cost of shares redeemed................ (5,826,609,515) (3,967,506,908) (754,181,180) $(466,767,213)
-------------- -------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS. 24,595,868 8,659,476 (57,580,591) (14,301,295)
-------------- -------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 24,603,273 8,647,978 (57,567,410) (14,292,395)
NET ASSETS:
Beginning of year...................... 329,574,094 354,177,367 192,140,962 134,573,552
-------------- -------------- ------------- -------------
End of year............................ $ 354,177,367 $ 362,825,345 $ 134,573,552 $ 120,281,157
=============== =============== ============= =============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
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 year indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED DECEMBER 31,
---------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $.9988 $.9987 $.9992 $.9993 $.9993
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ .0769 .0570 .0345 .0272 .0359
Net realized and unrealized gain (loss) on investments (.0001) .0005 .0001 -- ._
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .0768 .0575 .0346 .0272 .0359
------- ------- ------- ------- -------
DISTRIBUTIONS;
Dividends from investment income_net......... (.0769) (.0570) (.0345) (.0272) (.0359)
------- ------- ------- ------- -------
Net asset value, end of year................. $.9987 $.9992 $.9993 $.9993 $.9993
====== ====== ======= ====== ========
------- ------- ------- ------- -------
TOTAL INVESTMENT RETURN 7.99% 5.85% 3.51% 2.76% 3.65%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .50% .60% .63% .63% .63%
Ratio of net investment income to average net assets 7.72% 5.73% 3.48% 2.72% 3.59%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ .08% -- -- -- --
Net Assets, end of year (000's Omitted)...... $401,461 $354,090 $329,574 $354,177 $362,825
</TABLE>
See notes to financial statements.
<TABLE>
<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 year indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED DECEMBER 31,
--------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $.9985 $.9989 $.9987 $.9992 $.9990
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ .0758 .0557 .0338 .0260 .0343
Net realized and unrealized gain (loss) on investments .0004 (.0002) .0005 (.0002) --
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .0762 .0555 .0343 .0258 .0343
------- ------- ------- ------- -------
DISTRIBUTIONS;
Dividends from investment income_net......... (.0758) (.0557) (.0338) (.0260) (.0343)
------- ------- ------- ------- -------
Net asset value, end of year................. $.9989 $.9987 $.9992 $.9990 $.9990
====== ====== ======= ====== ========
TOTAL INVESTMENT RETURN 7.85% 5.71% 3.44% 2.63% 3.49%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .50% .65% .64% .65% .69%
Ratio of net investment income to average net assets 7.58% 5.64% 3.42% 2.61% 3.40%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ .10% -- -- -- --
Net Assets, end of year (000's Omitted)...... $246,174 $174,173 $192,141 $134,574 $120,281
</TABLE>
See notes to financial statements.
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, a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"), until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. Effective
August 24, 1994, the Manager became a direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
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 (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 December 31, 1994, 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 year
ended December 31, 1994.
(B) Pursuant to the Fund's Shareholder Services Plan, each series
reimburses Dreyfus Service Corporation 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, 1994, the Money Market Series and the Government Securities
Series were charged an aggregate of $85,335 and $40,682, respectively,
pursuant to the Shareholder Services Plan.
(C) Prior to August 24, 1994, certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. 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.
DREYFUS INSTITUTIONAL MONEY MARKET FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS INSTITUTIONAL MONEY MARKET FUND
We have audited 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 December 31, 1994, 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, 1994 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 each of the respective series constituting the Dreyfus
Institutional Money Market Fund at December 31, 1994, 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.
(Logo Signature)
New York, New York
February 2, 1995
DREYFUS INSTITUTIONAL MONEY MARKET FUND, Government Securities Series
IMPORTANT TAX INFORMATION (UNAUDITED)
For State individual income tax purposes, the Fund hereby designates
50.10% of the ordinary income dividends paid during its fiscal year ended
December 31, 1994 as attributable to interest income from direct obligations
of the United States. Such dividends are currently exempt from taxation for
individual income tax purposes in most states, including New York, California
and the District of Columbia.
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. 179/195AR9412
Institutional
Money Market
Fund
Annual Report
December 31, 1994
