<PAGE>
Dreyfus
Institutional
Money Market
Fund
Semi-Annual
Report
June 30, 1997
<PAGE>
Dreyfus Institutional Money Market Fund
- --------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to report the performance for Dreyfus Institutional Money
Market Fund for the six-month reporting period ended June 30, 1997 as shown
below:
ANNUALIZED
ANNUALIZED YIELD EFFECTIVE YIELD*
---------------- ----------------
Money Market Series................. 4.97% 5.08%
Government Securities Series........ 4.79% 4.90%
Economic Review
Since ending its 1995 mid-cycle slowdown, the economy has sustained an
above-trend growth trajectory, slowing only briefly in the third quarter of 1996
and again in recent months. Meanwhile, the level of economic activity is now at
the point where economic resources are near full deployment. Yet price inflation
remains quiescent, boosting the purchasing power of incomes and contributing to
the best sense of economic well-being in decades. In this environment, economic
policy has been benign, allowing market interest rates to sway within an
eighteen-month trading range and corporate profits to rise steadily. However,
even while the jury is out on the inflation risks ahead, the Federal Reserve
Board (the "Fed") has again indicated a one-way bias towards tighter future
policy.
Real Gross Domestic Product growth grew an above-trend 3.1% from year-end
1995 to year-end 1996, then accelerated to more than 4.0% in the first half of
this year. However, this year's pattern shows growth concentrated into the first
quarter, when GDP surged 5.9%, while a slowdown to near 2.5% is apparent in the
second quarter. The slower near-term growth is attributable to a lackluster
retail sector, even though exports and capital spending are gaining. A key issue
is whether the absence of pent-up demand could lead to a sluggish consumer
profile and, hence, a slow GDP growth from here on. Indeed, factors that could
underpin a resumption of stronger spending are rising: real consumer purchasing
power, soaring household wealth and all-time highs in consumer confidence.
Additionally, inventories remain lean, muting the prospect of yet slower
economic growth.
Alongside evidence of a slower retail sector in the second quarter are
reports showing that unemployment fell below 5% and industrial capacity
utilization tightened towards its 1994 highs. With these developments, the
economy now is operating at a high level with little slack. Yet, wage inflation
abated in the second quarter while price inflation continued to decelerate. The
absence of any troublesome sign of inflation has kept market interest rates in a
long-standing trading range. Even corporate profits continue to surprise on the
upside.
Views on the need to tighten monetary policy are divergent. There are those
who believe that inflation pressure points are just different than in the past
and others who believe the inflation cycle has been eliminated by global factors
and technology. However, by leaning towards tighter future policy, the Fed is at
least willing to err on the cautious side in the next several months.
The Money Market
The money market began the current calendar year in a reasonably steady
mode with fluctuations within a narrow band. As the year advanced, however, the
market became increasingly concerned that the Fed would raise interest rates.
Late in December, 1996, Fed Chairman Alan Greenspan made his highly publicized
remark about "irrational
<PAGE>
exuberance" in the equity markets. Early in 1997, other central bank officials
spoke on the same theme. So it was no great surprise to the markets when the
Fed, in late March, actually raised the short-term interbank rate by one
quarter of a point. This was done as a moderate dose of preventive medicine
against possible future inflation.
By late spring and early summer, however, signs of a slowdown in the
economy caused interest rates to simmer down. To be sure, there was the usual
nervousness before each subsequent scheduled meeting of the rate-setting Federal
Open Market Committee. Yet the general trend of rates most recently has been to
fluctuate moderately while working down to somewhat lower levels.
Portfolio Overview
In this environment, we have maintained average maturities generally in
line with the averages for the money market fund industry. The purpose is to
assure our investors competitive yields. To date, this has been a successful
strategy.
You may be assured that we will, as always, adapt portfolio strategy to the
prevailing market conditions with the goal of bringing you satisfactory yields
on your cash reserves.
Once again, we would like to express our appreciation for your confidence
in the Dreyfus Institutional Money Market Fund.
Sincerely,
Patricia A. Larkin
Senior Portfolio Manager
July 17, 1997
New York, N.Y.
* Annualized effective yield takes into account the effect of compounding and is
based upon dividends declared daily and reinvested monthly.
<PAGE>
<TABLE>
Dreyfus Institutional Money Market Fund, Money Market Series
- ----------------------------------------------------------------------
Statement of Investments June 30, 1997 (Unaudited)
* Principal
Negotiable Bank Certificates of Deposit--6.1% Amount Value
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Chase Manhattan Bank USA
5.50%, 7/9/97............................................................. $10,000,000 $ 10,000,000
Union Bank of California
5.54%, 7/7/97............................................................. 20,000,000 20,000,000
-------------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $30,000,000)........................................................ $ 30,000,000
=============
Bankers' Acceptance--1.2%
- -----------------------------------------------------------------------------------------------------------------------------
First National Bank of Boston
5.55%, 7/7/97-7/8/97
(cost $5,894,540)......................................................... $ 5,900,000 $ 5,894,540
=============
Commercial Paper--45.3%
- ---------------------------------------------------------------------------------------------------------------------------------
Abbey National North America
5.45%, 8/11/97............................................................ $20,000,000 $ 19,879,278
Aetna Services Inc.
5.61%, 7/7/97............................................................. 18,000,000 17,983,290
Bankers Trust New York Corp.
5.74%, 10/17/97........................................................... 20,000,000 20,000,000
Bear Stearns Companies Inc.
5.68%, 9/9/97............................................................. 10,000,000 9,891,111
Chrysler Financial Corp.
5.62%, 7/24/97............................................................ 12,000,000 11,957,143
Den Danske Corp.Inc.
5.77%, 8/20/97............................................................ 18,500,000 18,355,340
Ford Motor Credit Co.
5.68%, 10/22/97........................................................... 20,000,000 19,650,328
General Motors Acceptance Corp.
5.81%-5.94%, 11/18/97-12/8/97............................................. 25,000,000 24,416,800
Goldman Sachs Group L.P.
5.52%, 8/1/97............................................................. 20,000,000 19,908,722
Merrill Lynch & Co.Inc.
5.68%, 9/8/97............................................................. 10,000,000 9,892,667
Salomon Inc.
5.86%, 9/18/97............................................................ 5,000,000 4,936,581
Sanwa Business Credit Corp.
5.78%, 9/9/97............................................................. 10,000,000 9,889,361
Toronto-Dominion Holdings (USA) Inc.
5.50%, 11/21/97........................................................... 20,000,000 19,580,533
UBS Finance (Delaware) Inc.
6.05%, 7/1/97............................................................. 15,000,000 15,000,000
-------------
TOTAL COMMERCIAL PAPER
(cost $221,341,154)....................................................... $221,341,154
=============
*
<PAGE>
Dreyfus Institutional Money Market Fund, Money Market Series
- -----------------------------------------------------------------------
Statement of Investments (continued) June 30, 1997 (Unaudited)
*
Principal
Corporate Notes--16.3% Amount Value
- -------------------------------------------------------------- ------------------------------------
*
Bear Stearns Companies Inc.
5.68%, 9/3/97 (a)........................................................... $10,000,000 $ 10,000,504
Lehman Brothers Holdings Inc.
5.55%-5.90%, 8/15/97-5/11/98................................................ 24,510,000 24,622,221
Merrill Lynch & Co. Inc.
5.70%, 10/27/97 (a)......................................................... 10,000,000 9,999,357
PNC Bank N.A.
5.68%-5.69%, 2/18/98-4/24/98 (a)............................................ 15,000,000 14,994,983
Salomon Inc.
5.89%, 11/10/97 (a)......................................................... 20,000,000 20,000,000
-------------
TOTAL CORPORATE NOTES
(cost $79,617,065)......................................................... $ 79,617,065
=============
U.S. Government Agencies--24.1%
- ----------------------------------------------------------------------------------------------------------------------------------
Federal Farm Credit Banks,
Floating Rate Notes
5.58%-5.67%, 7/25/97-10/23/98 (a)........................................... $58,000,000 $ 57,967,455
Federal National Mortgage Association,
Floating Rate Notes
5.31%-5.61%, 11/21/97-5/14/98 (a)........................................... 60,000,000 60,034,512
-------------
TOTAL U.S. GOVERNMENT AGENCIES
(cost $118,001,967)......................................................... $118,001,967
=============
Time Deposits--1.6%
- ----------------------------------------------------------------------------------------------------------------------------------
Republic National Bank of New York (London)
6.12%, 7/1/97
(cost $7,785,000)........................................................... $ 7,785,000 $ 7,785,000
=============
Repurchase Agreements--4.5%
- ----------------------------------------------------------------------------------------------------------------------------------
SBC Capital Corp.
5.94%, dated 6/30/97, due 7/1/97 in the amount of
$22,003,630 (fully collateralized by $22,055,000 U.S. Treasury
Notes 5.625%, due 8/31/97, value $22,442,988
(cost $22,000,000).......................................................... $22,000,000 $ 22,000,000
=============
TOTAL INVESTMENTS
(cost $484,639,726)................................................. 99.1% $484,639,726
======= =============
CASH AND RECEIVABLES (NET)............................................. .9% $ 4,306,867
======= =============
NET ASSETS............................................................. 100.0% $488,946,593
======= =============
<FN>
Notes to Statement of Investments:
- --------------------------------------------------------------------
(a) Variable interest rate--subject to periodic change.
See notes to financial statements.
<PAGE>
Dreyfus Institutional Money Market Fund, Government Securities Series
- --------------------------------------------------------------------------
Statement of Investments June 30, 1997 (Unaudited)
*
Annualized
Yield on
Date of Principal
U.S. Treasury Bills--36.6% Purchase Amount Value
- ------------------------------------------------------------------
8/21/97
(cost $49,641,229)............................................. 5.10% $50,000,000 $ 49,641,229
=============
U.S. Treasury Notes--18.6%
- ------------------------------------------------------------------
6%, 12/31/97................................................... 5.63% $ 5,000,000 $ 5,007,739
7.875%, 1/15/98................................................ 5.43 10,000,000 10,123,561
7.25%, 2/15/98................................................. 5.31 10,000,000 10,097,267
-------------
TOTAL U.S. TREASURY NOTES
(cost $25,228,567)............................................. $ 25,228,567
=============
Repurchase Agreements--44.6%
Barclays De Zoette Wedd Securities, Inc.
dated 6/30/97, due 7/1/97 in the amount of $3,518,528
(fully collateralized by $3,447,000 U.S. Treasury
Notes 8.75%, due 10/15/97, value $3,570,599)................... 5.40% $ 3,518,000 $ 3,518,000
CIBC Woody Gundy Security Corp.
dated 6/30/97, due 7/1/97 in the amount of $15,002,479
(fully collateralized by $15,205,000 U.S. Treasury
Notes 5.25%, due 12/31/97, value $15,178,631).................. 5.95 15,000,000 15,000,000
Nikko Securities Co. International Inc.
dated 6/30/97, due 7/1/97 in the amount of $16,002,644
(fully collateralized by $16,046,000 U.S. Treasury
Notes 5.625%, due 10/31/97, value $16,195,614)................. 5.95 16,000,000 16,000,000
SBC Capital Corp.
dated 6/30/97, due 7/1/97 in the amount of $10,001,528
(fully collateralized by $10,037,000 U.S. Treasury
Notes 5%, due 1/31/98, value $10,201,037)...................... 5.50 10,000,000 10,000,000
*
<PAGE>
Dreyfus Institutional Money Market Fund, Government Securities Series
- ------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1997 (Unaudited)
*
Annualized
Yield on
Date of Principal
Repurchase Agreements (continued) Purchase Amount Value
- ---------------------------------------------------------------- ------------- --------------- -----------------
UBS Securities Inc.
dated 6/30/97, due 7/1/97 in the amount of $16,002,622
(fully collateralized by $15,580,000 U.S. Treasury
Notes 7.875%, due 1/15/98, value $16,322,767).................. 5.90% $16,000,000 $ 16,000,000
-------------
TOTAL REPURCHASE AGREEMENTS
(cost $60,518,000)............................................. $ 60,518,000
=============
TOTAL INVESTMENTS
(cost $135,387,796)..................................... 99.8% $135,387,796
====== =============
CASH AND RECEIVABLES (NET) .................................. .2% $ 213,355
====== =============
NET ASSETS.................................................100.0% $135,601,151
====== =============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Institutional Money Market Fund
- --------------------------------------------------------------------
<TABLE>
Statement of Assets and Liabilities June 30, 1997 (Unaudited)
Money Government
Market Securities
Series Series
------ ----------
<S> <C>
ASSETS: Investments in securities--See Statement of Investments <C> <C>
(including repurchase agreements of $22,000,000 and
$60,518,000 for the Money Market Series and the
Government Securities Series, respectively)--Note 2(b) $484,639,726 $135,387,796
Cash............................................. 1,376,395 256,510
Interest receivable.............................. 3,161,545 641,859
Prepaid expenses ................................ 32,291 17,821
------------- -------------
489,209,957 136,303,986
------------- -------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 207,309 65,418
Payable for Common Stock redeemed................ -- 606,670
Accrued expenses................................. 56,055 30,747
------------- -------------
263,364 702,835
------------- -------------
NET ASSETS..................................................................... $488,946,593 $135,601,151
============= =============
REPRESENTED BY: Paid-in capital.................................. $488,960,905 $135,627,875
Accumulated net realized gain (loss) on investments (14,312) (26,724)
------------- -------------
NET ASSETS..................................................................... $488,946,593 $135,601,151
============= =============
SHARES OUTSTANDING
(unlimted number of $.001 par value shares of Beneficial Interest authorized).. 488,960,905 135,627,875
NET ASSET VALUE, offering and redemption price per share....................... $1.00 $1.00
======= =======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Institutional Money Market Fund
- -----------------------------------------------------------------------
<TABLE>
Statement of Operations Six Months Ended June 30, 1997 (Unaudited)
Money Government
Market Securities
Series Series
<C> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income.................................. $13,465,739 $4,217,626
------------ -----------
EXPENSES--Note 2(c): Management fee--Note 3(a)......................... $ 1,213,280 $ 390,483
Shareholder servicing costs--Note 3(b)........... 89,051 22,399
Custodian fees................................... 44,347 34,300
Trustees' fees and expenses--Note 3(c)............ 29,112 8,760
Professional fees................................ 24,137 4,590
Registration fees................................ 9,533 11,276
Prospectus and shareholders' reports............. 1,344 1,793
Miscellaneous.................................... 3,788 --
------------ -----------
Total Expenses.............................. 1,414,592 473,601
------------ -----------
INVESTMENT INCOME--NET.......................................................... 12,051,147 3,744,025
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 2(b).............................. (2,636) 33,938
------------ -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $12,048,511 $3,777,963
============ ===========
See notes to financial statements.
</TABLE> *
<TABLE>
Dreyfus Institutional Money Market Fund
- ----------------------------------------------------------------------------------------------------------------------------------
- -
Statement of Changes in Net Assets
Money Market Series Government Securities Series
------------------------------ ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1997 December 31, June 30, 1997 December 31,
(Unaudited) 1996 (Unaudited) 1996
---------------- --------------- -------------- -------------
<S> <C> <C> <C>
OPERATIONS:
Investment income--net........................ $ 12,051,147 $ 21,697,330 $ 3,744,025 $ 7,215,073
Net realized gain (loss) on investments...... (2,636) 80,184 33,938 21,014
--------------- --------------- ------------- -------------
Net Increase (Decrease) in Net Assets
Resulting from Operations................ 12,048,511 21,777,514 3,777,963 7,236,087
--------------- --------------- ------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net........................ (12,051,147) (21,697,330) (3,744,025) (7,215,073)
--------------- --------------- ------------- -------------
BENEFICIAL INTERESTTRANSACTIONS:
($1.00 per share):
Net proceeds from shares sold................ 2,278,157,001 5,173,786,531 495,731,733 574,692,866
Dividends reinvested......................... 1,476,140 2,582,594 733,455 1,899,711
Cost of shares redeemed...................... (2,273,839,592) (5,095,326,061) (463,623,540) (597,059,331)
--------------- --------------- ------------- -------------
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions......... 5,793,549 81,043,064 32,841,648 (20,466,754)
--------------- --------------- ------------- -------------
Total Increase (Decrease) in
Net Assets............................ 5,790,913 81,123,248 32,875,586 (20,445,740)
NET ASSETS:
Beginning of Period.......................... 483,155,680 402,032,432 102,725,565 123,171,305
--------------- --------------- ------------- -------------
End of Period................................ $ 488,946,593 $ 483,155,680 $135,601,151 $102,725,565
=============== =============== ============= =============
See notes to financial statements.
*
</TABLE>
<TABLE>
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.
Six Months Ended
June 30, 1997 Year Ended December 31,
-------------------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
----------- ------ ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net................. .025 .049 .054 .036 .027 .035
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net.. (.025) (.049) (.054) (.036) (.027) (.035)
------ ------ ------ ------ ------ ------
Net asset value, end of period........ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.................. 5.02%* 5.03% 5.57% 3.65% 2.76% 3.51%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .58%* .58% .62% .63% .63% .63%
Ratio of net investment income
to average net assets.............. 4.97%* 4.91% 5.43% 3.59% 2.72% 3.48%
Net Assets, end of period (000's Omitted) $488,947 $483,156 $402,032 $362,825 $354,177 $329,574
- ----------------------------------------------------------------------------------------------------------------------------------
* Annualized.
See notes to financial statements.
*
</TABLE>
Dreyfus Institutional Money Market, 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>
Six Months Ended
June 30, 1997 Year Ended December 31,
----------------------------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
----------- ------ ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net................. .024 .047 .052 .034 .026 .034
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net.. (.024) (.047) (.052) (.034) (.026) (.034)
------ ------ ------ ------ ------ ------
Net asset value, end of period........ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
==== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.................. 4.84%* 4.84% 5.36% 3.49% 2.63% 3.44%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .61%* .63% .65% .69% .65% .64%
Ratio of net investment income
to average net assets.............. 4.79%* 4.74% 5.23% 3.40% 2.61% 3.42%
Net Assets, end of period (000's Omitted) $135,601 $102,726 $123,171 $120,281 $134,574 $192,141
- ----------------------------------------------------------------------------------------------------------------------------------
- -
* Annualized.
See notes to financial statements.
</TABLE>
<PAGE>
Dreyfus Institutional Money Market Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--General:
Dreyfus Institutional Money Market Fund (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. The Fund's investment objective is to provide investors with as
high a level of current income as is consistent with the preservation of capital
and the maintenance of liquidity. The Dreyfus Corporation ("Manager") serves as
the Fund's investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A. Premier Mutual Fund Services, Inc. is the distributor of the Fund's
shares, which are sold to the public without a sales charge.
It is the Fund's policy to maintain a continuous net asset value per share
of $1.00 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 per share of $1.00.
The Series' financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
NOTE 2--Significant Accounting Policies:
(A) PORTFOLIO VALUATION: Investments in securities 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.
<PAGE>
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 $12,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to December
31, 1996. If not applied, the carryover expires in 2002.
The Government Securities Series has an unused capital loss carryover of
approximately $61,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to December
31, 1996. If not applied, the carryover expires in 1997.
At June 30, 1997, 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 with the Manager, the management fee
for each series is computed at the annual rate of .50 of 1% of the value of the
average daily net assets of each series and is payable monthly.
(B) Under the 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 each 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 period
ended June 30, 1997, the Money Market Series and the Government Securities
Series were charged an aggregate of $33,873 and $23,060, respectively, pursuant
to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform agency services for the Fund. With respect to the Money
Market Series and the Government Securities Series, such compensation amounted
to $33,120 and $2,312, respectively, during the period ended June 30, 1997.
(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.
<PAGE>
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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 179/195SA976
