DREYFUS INSTITUTIONAL MONEY MARKET FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus
Institutional Money Market Fund - Money Market Series and Government
Securities Series. For its annual reporting period ended December 31, 1995,
the Money Market Series provided a yield of 5.43% and the Government
Securities Series provided a yield of 5.23%. The effective yield after
compounding for the two Series was 5.57% and 5.35%, respectively.*
THE ECONOMY
Additional evidence that economic activity remained sluggish and that
inflation continued to be under control moved the Federal Reserve Board to
further reduce the Federal Funds rate in December. (The Federal Funds rate is
the rate at which the nation's banks borrow money from each other and is a
benchmark for all other short-term rates.) This was the second reduction for
this important short-term rate in 1995, the first occurring in July. The
latest 25-basis-point reduction in December put the rate at 5.50%. Major
incentives for this additional decrease were the favorable inflation report
in November and the generally slow rate of economic growth. As it did in
July, the Federal Reserve left unchanged the discount rate - the rate at
which the Federal Reserve lends to member banks. The discount rate remained
at 5.25% throughout 1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and very modest industrial production lent credence to
fears about the possibility of recession. Consumer spending was inhibited
last year by the sluggish growth in wages and salaries and the continued
trend of corporate downsizing. The lethargic pace of consumer spending last
year culminated in one of the worst holiday sales periods since the business
slump in 1990-1991, despite steep price markdowns by retailers.
By November, the capacity utilization rate of the nation's factories
declined for the third consecutive month. This was a reflection of weakening
demand and further evidence of the diminishing pressure to raise prices.
Furthermore, inventories built up by year-end, another sign of slackening
demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the economy. As we go
forward without a budget agreement, we believe reductions in annually
appropriated spending will tend to inhibit the economy. With an agreement,
the combination of cuts in appropriations and other spending reductions could
have the same effect.
There are strong indications that inflation is under control. Until
mid-year 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now the focus seems to have shifted to actions designed to avoid
recession. In an election year, few things are less desirable for political
incumbents than recession.
MONEY MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
In the past 12 months, strong fundamental and positive technical factors
influenced interest rate performance. Statistical data consistently revealed
weak to modest economic growth with a favorable inflation outlook, prompting
interest rates to gradually trend lower.
For example, the 3-month Certificates of Deposit had an average yield of
6.29% for the month of December 1994 compared to 5.62% for the month of
December 1995 and the 3-month Treasury Bill averaged 5.69% for the month of
December 1994 compared to 5.08% for the month of December 1995.
In response, the average maturity of your Fund was extended during the
past fiscal year in an attempt to fully maximize yield potential in a
declining interest rate environment.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Portfolio Manager
January 15, 1996
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested
monthly.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
PRINCIPAL
COMMERCIAL PAPER-44.0% AMOUNT VALUE
_______ _______
<S> <C> <C>
Den Danske Corp. Inc.
5.52%-5.88%, 1/19/96-6/12/96............................................ $ 20,000,000 $19,783,443
Ford Motor Credit Co.
5.67%-6.33%, 1/9/96-7/22/96............................................. 19,000,000 18,824,218
General Electric Capital Corp.
5.38%-5.58%, 6/12/96-6/24/96............................................ 20,000,000 19,505,210
General Electric Capital Services Inc.
5.38%-5.64%, 4/25/96-6/24/96............................................ 20,000,000 19,608,618
General Motors Acceptance Corp.
5.38%-5.73%, 2/16/96-9/23/96............................................ 21,000,000 20,587,077
Generale Bank Inc.
5.68%, 1/10/96.......................................................... 10,000,000 9,986,200
Lehman Brothers Holdings Inc.
5.65%, 5/10/96 (a)...................................................... 5,000,000 5,000,000
Merrill Lynch & Co. Inc.
5.56%, 3/29/96.......................................................... 15,000,000 14,799,067
Mitsubishi Motors Credit of America
6.06%, 1/19/96 (b)...................................................... 7,000,000 6,979,175
NationsBank Corp.
5.61%, 5/28/96.......................................................... 10,000,000 9,775,533
Sears Roebuck Acceptance Corp.
5.81%, 2/8/96........................................................... 15,000,000 14,909,750
SwedBank Inc.
5.58%, 3/15/96.......................................................... 8,000,000 7,909,391
Toronto-Dominion Holdings USA Inc.
5.76%, 1/17/96.......................................................... 9,000,000 8,977,600
______
TOTAL COMMERCIAL PAPER
(cost $176,645,282)..................................................... $176,645,282
=======
CORPORATE NOTES-10.5%
Avco Financial Services Inc.
5.78%, 4/1/96 (a)....................................................... $ 5,000,000 $ 5,000,000
Bear Stearns Companies Inc.
5.23%, 1/26/96 (a)...................................................... 12,000,000 12,000,000
Comerica Bank
5.64%, 7/26/96 (a)...................................................... 15,000,000 14,999,629
Lehman Brothers Holdings Inc.
5.69%, 5/16/96 (a)...................................................... 10,000,000 10,007,676
______
TOTAL CORPORATE NOTES
(cost $42,007,305)...................................................... $42,007,305
=======
DREYFUS INSTITUTIONAL MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
SHORT-TERM BANK NOTES 10.4% AMOUNT VALUE
_______ _______
Banc One Corp.
6%, 9/12/96............................................................. $ 4,000,000 $ 4,000,000
Comerica Bank
5.65%, 9/18/96 (a)...................................................... 3,000,000 2,998,699
First National Bank of Boston
5.71%, 7/10/96 (a)...................................................... 5,000,000 5,000,000
Fleet Bank of New York N.A.
5.78%, 2/9/96........................................................... 10,000,000 10,000,000
Morgan Guaranty Trust Co.
5.95%, 7/18/96.......................................................... 15,000,000 15,000,000
PNC Bank NA
5.50%, 9/18/96.......................................................... 5,000,000 5,002,634
______
TOTAL SHORT-TERM BANK NOTES
(cost $42,001,333)...................................................... $ 42,001,333
=======
U.S. GOVERNMENT AGENCIES-22.4%
Federal Farm Credit Banks
Floating Rate Notes
5.58%-5.67%, 11/7/96-10/23/98 (a)....................................... $ 80,000,000 $79,899,812
Federal National Mortgage Association
Floating Rate Notes
5.86%, 10/18/96 (a)..................................................... 10,000,000 9,995,389
______
TOTAL U.S. GOVERNMENT AGENCIES
(cost $89,895,201)...................................................... $ 89,895,201
=======
TIME DEPOSITS-.6%
Republic National Bank of New York (London)
3%, 1/2/96
(cost $2,589,000)....................................................... $ 2,589,000 $ 2,589,000
=======
REPURCHASE AGREEMENTS-11.9%
Barclays de Zoette Wedd Securities Inc.
4.50%, dated 12/29/95, due 1/2/96 in the amount of
$13,006,500 (fully collateralized by $12,835,000
U.S. Treasury Notes 7.50% due 2/29/96, value $13,205,769)............... $ 13,000,000 $ 13,000,000
Lehman Government Securities, Inc.
5.83%, dated 12/29/95, due 1/2/96 in the amount of
$35,022,672 (fully collateralized by $33,925,000
U.S. Treasury Notes 7.875% due 6/30/96, value $35,695,461).............. 35,000,000 35,000,000
______
TOTAL REPURCHASE AGREEMENTS
(cost $48,000,000)...................................................... $ 48,000,000
=======
DREYFUS INSTITUTIONAL MONEY MARKET FUND, MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
VALUE
_______
TOTAL INVESTMENTS
(cost $401,138,121) ...................................... 99.8% $401,138,121
==== =======
CASH AND RECEIVABLES (NET) ................................... .2% $ 894,311
==== =======
NET ASSETS ............................................. 100.0% $402,032,432
==== =======
NOTES TO STATEMENT OF INVESTMENTS:
(a) Variable interest rate-subject to periodic change.
(b) Backed by an irrevocable letter of credit.
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND, GOVERNMENT SECURITIES SERIES
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-39.5% PURCHASE AMOUNT VALUE
______ _______ _______
<S> <C> <C> <C>
2/8/96..................................................... 5.48% $ 5,000,000 $ 4,971,975
4/4/96..................................................... 5.48 10,000,000 9,860,567
5/30/96.................................................... 5.61 5,000,000 4,887,500
7/25/96.................................................... 5.70 10,000,000 9,691,000
8/22/96.................................................... 5.87 10,000,000 9,639,575
10/17/96................................................... 5.61 5,000,000 4,786,125
11/14/96................................................... 5.46 5,000,000 4,771,437
______
TOTAL U.S. TREASURY BILLS (cost $48,608,179)................... $ 48,608,179
=======
U.S. TREASURY NOTES-12.2%
4%, 1/31/96................................................ 4.94% $ 5,000,000 $ 4,995,383
7.375%, 5/15/96............................................ 5.41 10,000,000 10,068,293
______
TOTAL U.S. TREASURY NOTES (cost $15,063,676)................... $ 15,063,676
=======
REPURCHASE AGREEMENTS-48.5%
Aubrey G. Lanston & Co. Inc.
dated 12/29/95, due 1/2/96 in the amount of $14,009,178
(fully collateralized by $5,790,000 U.S. Treasury
Notes 7.875% due 7/15/96 and $7,895,000 U.S. Treasury
Notes 7.75% due 3/31/1996, value $14,180,508).............. 5.90% $ 14,000,000 $ 14,000,000
Barclays de Zoette Wedd Securities Inc.
dated 12/29/95, due 1/2/96 in the amount of $4,877,438
(fully collateralized by $4,965,000 U.S. Treasury
Notes 4.375% due 11/15/96, value $4,957,958)............... 4.50 4,875,000 4,875,000
Goldman, Sachs & Co.
dated 12/29/95, due 1/2/96 in the amount of $10,006,478
(fully collateralized by $9,935,000 U.S. Treasury
Notes 7.50% due 2/29/96, value $10,227,381)................ 5.83 10,000,000 10,000,000
Morgan Stanley & Co. Inc.
dated 12/29/95, due 1/2/96 in the amount of $14,009,131
(fully collateralized by $13,820,000 U.S. Treasury
Notes 7.50% due 2/29/96, value $14,226,714)................ 5.87 14,000,000 14,000,000
SBC Capital Corp.
dated 12/29/95, due 1/2/96 in the amount of $16,824,819
(fully collateralized by $13,950,000 U.S. Treasury
Notes 6.875% due 10/31/96 and $3,005,000 U.S. Treasury
Bills due 11/14/96, value $17,167,239)..................... 5.79 16,814,000 16,814,000
______
TOTAL REPURCHASE AGREEMENTS (cost $59,689,000)................. $ 59,689,000
=======
TOTAL INVESTMENTS (cost $123,360,855)............... 100.2% $123,360,855
==== =======
LIABILITIES, LESS CASH AND RECEIVABLES.............. (.2%) $ (189,550)
==== =======
NET ASSETS.......................................... 100.0% $123,171,305
==== =======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
MONEY GOVERNMENT
MARKET SECURITIES
SERIES SERIES
______ ______
<S> <C> <C>
ASSETS:
Investments in securities, at value (including repurchase agreements
of $48,000,000 and $59,689,000 for the Money Market Series
and the Government Securities Series, respectively)-Note 2(a,b)...... $401,138,121 $123,360,855
Interest receivable.................................................... 2,193,599 207,455
Prepaid expenses....................................................... 19,054 4,408
______ ______
403,350,774 123,572,718
______ ______
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries........................ 162,492 80,878
Due to Custodian....................................................... 1,037,896 268,683
Accrued expenses....................................................... 117,954 51,852
______ ______
1,318,342 401,413
______ ______
NET ASSETS .................................................... $402,032,432 $123,171,305
======= =======
REPRESENTED BY:
Paid-in capital........................................................ $402,124,292 $123,252,981
Accumulated net realized (loss) on investments......................... (91,860) (81,676)
______ ______
NET ASSETS at value applicable to 402,124,292 and 123,252,981 shares
outstanding (unlimited number of $.001 par value shares of
Beneficial Interest authorized)........................................ $402,032,432 $123,171,305
======= =======
NET ASSET VALUE, offering and redemption price per share:
Money Market Series
($402,032,432 / 402,124,292 shares).................................. $1.00
===
Government Securities Series
($123,171,305 / 123,252,981 shares).................................. $1.00
===
See notes to financial statements.
DREYFUS INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
GOVERNMENT
MONEY MARKET SECURITIES
SERIES SERIES
______ ______
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 20,949,091 $ 9,062,233
______ ______
EXPENSES-Note 2(c):
Management fee-Note 3(a).............................................. $ 1,732,707 $ 770,698
Shareholder servicing costs-Note 3(b)................................. 140,612 94,344
Custodian fees........................................................ 89,827 65,754
Professional fees..................................................... 87,528 22,858
Trustees' fees and expenses-Note 3(c)................................. 48,825 19,546
Registration fees..................................................... 28,867 11,262
Prospectus and shareholders' reports.................................. 5,606 3,149
Miscellaneous......................................................... 1,540 7,397
______ ______
TOTAL EXPENSES.................................................... 2,135,512 995,008
______ ______
INVESTMENT INCOME-NET....................................................... 18,813,579 8,067,225
NET REALIZED GAIN ON INVESTMENTS-Note 2(b).................................. 155,073 41,000
______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 18,968,652 $ 8,108,225
======= ======
</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,
_________________ _________________
1994 1995 1994 1995
_______ _______ _______ _______
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income-net.............. $ 12,528,629 $18,813,579 $ 3,946,457 $ 8,067,225
Net realized gain (loss) on investments (11,498) 155,073 8,900 41,000
_______ _______ _______ _______
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... 12,517,131 18,968,652 3,955,357 8,108,225
_______ _______ _______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.............. (12,528,629) (18,813,579) (3,946,457) (8,067,225)
_______ _______ _______ _______
BENEFICIAL INTEREST TRANSACTIONS
($1.00 per share):
Net proceeds from shares sold...... 3,974,164,559 4,216,643,080 451,323,605 553,280,575
Dividends reinvested............... 2,001,825 2,451,545 1,142,313 2,467,638
Cost of shares redeemed............ (3,967,506,908) (4,180,042,611) (466,767,213) (552,899,065)
_______ _______ _______ _______
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS 8,659,476 39,052,014 (14,301,295) 2,849,148
_______ _______ _______ _______
TOTAL INCREASE (DECREASE) IN
NET ASSETS................. 8,647,978 39,207,087 (14,292,395) 2,890,148
NET ASSETS:
Beginning of year.................. 354,177,367 362,825,345 134,573,552 120,281,157
_______ _______ _______ _______
End of year........................ $ 362,825,345 $ 402,032,432 $ 120,281,157 $ 123,171,305
======== ========= ========= =========
</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: 1991 1992 1993 1994 1995
____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____ ____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net........................ .057 .035 .027 .036 .054
____ ____ ____ ____ ____
DISTRIBUTIONS:
Dividends from investment income-net......... (.057) (.035) (.027) (.036) (.054)
____ ____ ____ ____ ____
Net asset value, end of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 5.85% 3.51% 2.76% 3.65% 5.57%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .60% .63% .63% .63% .62%
Ratio of net investment income to average
net assets................................. 5.73% 3.48% 2.72% 3.59% 5.43%
Net Assets, end of year (000's Omitted)...... $354,090 $329,574 $354,177 $362,825 $402,032
</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: 1991 1992 1993 1994 1995
____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____ ____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net........................ .056 .034 .026 .034 .052
____ ____ ____ ____ ____
DISTRIBUTIONS:
Dividends from investment income-net......... (.056) (.034) (.026) (.034) (.052)
____ ____ ____ ____ ____
Net asset value, end of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 5.71% 3.44% 2.63% 3.49% 5.36%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .65% .64% .65% .69% .65%
Ratio of net investment income to average
net assets................................. 5.64% 3.42% 2.61% 3.40% 5.23%
Net Assets, end of year (000's Omitted)...... $174,173 $192,141 $134,574 $120,281 $123,171
</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. 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 agreements, 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.
(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
DREYFUS INSTITUTIONAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 $92,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to
December 31, 1995. If not applied, $80,000 of the carryover expires in 1996
and $12,000 expires in 2002.
The Government Securities Series has an unused capital loss carryover of
approximately $82,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to
December 31, 1995. If not applied, $18,000 of the carryover expires in 1996
and $64,000 expires in 1997.
At December 31, 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 .50 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 (excluding distribution expenses and certain expenses as
described above) exceed 21\2% of the first $30 million, 2% of the next $70
million and 11\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, 1995.
Effective December 1, 1995, 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. With respect to the Money Market Series and the Government
Securities Series, such compensation amounted to $4,363 and $566,
respectively, for the period from December 1, 1995 through December 31, 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 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 year ended December 31, 1995,
the Money Market Series and the Government Securities Series were charged an
aggregate of $39,030 and $74,515, 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
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, 1995, 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, 1995 by correspondence with the custodians
and brokers. 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, 1995, 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.
[Ernst and Young LLP signature logo]
New York, New York
February 6, 1996
DREYFUS INSTITUTIONAL MONEY MARKET FUND, GOVERNMENT SECURITIES SERIES
IMPORTANT TAX INFORMATION (UNAUDITED)
For State individual income tax purposes, the Series hereby designates
57.81% of the ordinary income dividends paid during its fiscal year ended
December 31, 1995 as attributable to interest income from direct obligations
of the United States government. 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 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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 179/195AR9512
[Dreyfus logo]
Institutional
Money Market
Fund
Annual Report
December 31, 1995
