YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
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 12-month period ended December 31, 1998 as shown in the
following table:
<TABLE>
<CAPTION>
YIELD EFFECTIVE YIELD*
______________ _____________
<S> <C> <C>
Money Market Series . . . . . . . . . . . . . . . . . 5.02% 5.14%
Government Securities Series . . . . . . . . . . . . . 4.76% 4.87%
</TABLE>
ECONOMIC REVIEW
During 1998, the main regions of the world had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board to contemplate a rise in interest rates early in the
year, but world economic weakness generated powerful enough disinflationary
forces that the Fed acted instead to ease credit beginning in September. After
many years of subpar economic growth, continental Europe moved into a sustained
economic expansion. The overall European economy benefited as interest rates in
peripheral countries such as Spain and Italy fell, approaching the lower levels
established by Germany, on the eve of currency unification. Unlike the U.S.,
Europe has substantial excess capacity of productive plant and labor. In Asia,
weak economies were pervasive as a result of a financial crisis. The Latin
American economies weakened in turn as the financial stresses spread throughout
that region. On balance, there was a substantial weakening of the world economy
over the course of 1998 moderated mainly by the American consumer's role as
"spender of last resort."
A main influence on the U.S. economy during the year was the foreign financial
crisis and consequent cooling of the world economy. The positive effects hit
first. Actual inflation and expected inflation dropped, causing a decline in
long-term Treasury bond yields and mortgage rates. This caused a boom in
housing. The fall in inflation left more of the growth in consumer income with
which to buy goods and services. Thus, consumers benefited from a combination of
good growth in income after inflation, a strong labor market, and increases in
the prices of assets they owned, including bonds, stocks and real estate. In a
sense, 1998 was a year of disinflationary boom in the U.S., as above-trend
economic growth coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis in 1998 from Japan,
emerging market countries and overextended financial institutions. Excess
capacity persists in many worldwide industries after years of high capital
spending followed by the onset of a worldwide weakening in demand. Fortunately,
the U.S. has led the world in making the transition away from the old
manufacturing industries to the new growth industries, such as biotechnology,
software, computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relaxed.
MARKET ENVIRONMENT/PORTFOLIO FOCUS
The economic forces described above drove down interest rates in late summer
and early fall. Later in the year there was a modest increase in rates. One of
its effects was to change the yield curve from one that had been negative to a
positive, sloping structure. In this normal configuration, longer-term yields
exceeded those of the shorter-term instruments.
A flight to safety by global investors was the force that drove down
longer-term U.S. yields last fall. In recent weeks, investors appear to have
become more confident about the economic outlook. One factor has been the rise
in interest rates in Japan, which brought about some repatriation of investment
funds to that country. In addition, the introduction of the Euro currency at the
start of the new year, which was well received, put some downward pressure on
the U.S. dollar.
Investor fears of worldwide financial turmoil seemed to have receded recently.
Currently, prices and rates in the money market appear to be reacting more to
underlying economic forces than to such market psychology factors. This, of
course, can be constructive for investors in short-term money market
instruments.
The fact that the Federal Reserve Open Market Committee lowered interest rates
three times between late September and year-end has been a strong
confidence-building factor in the markets. Currently, we expect the Fed to
remain in a "wait and see" mode for a while.
During the reporting period, we lengthened the average portfolio maturity, as
we deemed appropriate in order to take advantage of possible declining interest
rates. We will continue to monitor the market, including interest rates, in
seeking investment opportunities for the Fund.
Sincerely,
[Patricia A. Larkin signature]
Patricia A. Larkin
Senior Portfolio Manager
January 13, 1999
New York, N.Y.
* Effective yield based upon dividends declared daily and reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS INSTITUTIONAL MONEY MARKET FUND, MONEY MARKET SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998
Principal
Negotiable Bank Certificates of Deposit--7.1% Amount Value
- ------------------------------------------------------- _____________ _____________
Branch Bank & Trust Co.
<S> <C> <C>
5.04%, 1/10/00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,000,000 $ 17,994,685
LaSalle National Bank
5.67%, 4/13/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000
_____________
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $37,994,685) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 37,994,685
_____________
Commercial Paper--55.9%
- -------------------------------------------------------
Bear Stearns Companies Inc.
5.67%, 1/14/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000,000 $ 19,960,278
Canadian Imperial Holdings Inc.
5.04%, 6/28/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,513,961
Chrysler Financial Corp.
5.12%, 3/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,795,194
Ciesco L.P.
5.24%, 2/3/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,904,483
Den Danske Corp.
5.66%, 1/4/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,990,833
Finova Capital Corp.
5.32%, 3/19/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,721,410
Ford Motor Credit Corp.
4.90%, 1/4/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000,000 14,993,875
General Electric Capital Corp.
5.49%, 1/28/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,919,300
General Motors Acceptance Corp.
5.24%, 1/27/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,906,833
Goldman Sachs Group L.P.
5.14%, 4/20/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,621,528
Merrill Lynch & Co. Inc.
5.06%-5.71%, 1/14/99-3/26/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,735,239
Paine Webber Group Inc.
5.75%, 1/7/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,976,583
Swedbank Inc.
5.08%, 4/14/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,645,938
Toronto-Dominion Holdings USA Inc.
5.40%, 1/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,958,233
_____________
TOTAL COMMERCIAL PAPER
(cost $302,643,688) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $302,643,688
_____________
DREYFUS INSTITUTIONAL MONEY MARKET FUND, MONEY MARKET SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Corporate Notes--19.2% Amount Value
- ------------------------------------------------------- _____________ ____________
_
Bankers Trust New York Co.
4.90%-4.95%, 1/8/99-4/30/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,000,000 $ 21,999,508
CIT Group Holdings Inc.
4.87%, 9/21/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,995,780
Heller Financial Inc.
5.00%-5.05%, 4/13/99-9/8/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000,000 22,000,000
Morgan (J.P) & Co. Inc.
4.86%, 2/24/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,998,760
Salomon Smith Barney Holdings Inc.
5.00%, 10/28/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000
_____________
TOTAL CORPORATE NOTES
(cost $103,994,048) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $103,994,048
_____________
Short-Term Bank Notes--13.0%
- -------------------------------------------------------
Bank of America FSB
5.13%, 3/29/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000,000 $ 25,000,000
First Union National Bank
5.21%, 9/24/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000
Key Bank N.A.
4.87%, 2/24/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,997,988
_____________
TOTAL SHORT-TERM BANK NOTES
(cost $69,997,988) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 69,997,988
_____________
Time Deposit--3.6%
- -------------------------------------------------------
Republic National Bank of New York (London)
2.88%, 1/4/99
(cost $19,067,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,067,000 $ 19,067,000
_____________
Repurchase Agreement--.5%
- -------------------------------------------------------
SBC Warburg Dillon Read Inc.
3.00% dated 12/31/98, due 1/4/99 in the amount of $2,655,855 (fully
collateralized
by $2,762,000 U.S. Treasury Bills, due 6/3/99, value $2,709,659)
(cost $2,655,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,655,000 $ 2,655,000
_____________
</TABLE>
<TABLE>
<CAPTION>
TOTAL INVESTMENTS
<S> <C> <C>
(cost $536,352,409) . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.3% $536,352,409
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . .7% $ 3,929,796
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $540,282,205
_______ _____________
</TABLE>
<TABLE>
<CAPTION>
Notes to Statement of Investments:
- -------------------------------------------------------
(a) Variable interest rate-subject to periodic change.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS INSTITUTIONAL MONEY MARKET FUND, GOVERNMENT SECURITIES SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998
Annualized
Yield on
Date of Principal
U.S. Treasury Bills--18.9% Purchase Amount Value
- ---------------------------------------------------------------------------- ___________ ____________ ____________
1/21/99
<S> <C> <C> <C>
(cost $12,968,005) . . . . . . . . . . . . . . . . . . . . . . . . . . 4.44% $13,000,000 $12,968,005
____________
U.S. Treasury Notes--45.4%
- ----------------------------------------------
5%, 2/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.89% $ 4,000,000 $ 3,997,375
5.875%, 2/28/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.38 10,000,000 10,020,742
6.375%, 7/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.25 5,000,000 5,021,392
5.875%, 8/31/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.81 5,000,000 5,032,712
5.625%, 11/30/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.45 5,000,000 5,043,992
5.625%, 12/31/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.58 2,000,000 2,017,094
____________
TOTAL U.S. TREASURY NOTES
(cost $31,133,307) . . . . . . . . . . . . . . . . . . . . . . . . . . $31,133,307
____________
Repurchase Agreements--34.6%
- ----------------------------------------------
Bear, Stearns & Co.
dated 12/31/98, due 1/4/99 in the amount of $6,003,100
(fully collateralized by $6,165,000 U.S. Treasury Bills, due
4/29/99, value $6,075,683) . . . . . . . . . . . . . . . . . . . . . . 4.65% $ 6,000,000 $ 6,000,000
Donaldson, Lufkin & Jenrette Securities, Inc.
dated 12/31/98, due 1/4/99 in the amount of $5,002,694
(fully collateralized by $4,907,000 U.S. Treasury Notes 7.75%, due
12/31/99, value $5,052,677) . . . . . . . . . . . . . . . . . . . . . . 4.85 5,000,000 5,000,000
Morgan Stanley Dean Witter & Co.
dated 12/31/98, due 1/4/99 in the amount of $6,003,080
(fully collateralized by $5,875,000 U.S. Treasury Notes 7.875%, due
11/15/99, value $6,088,567) . . . . . . . . . . . . . . . . . . . . . . 4.62 6,000,000 6,000,000
SBC Warburg Dillon Read Inc.
dated 12/31/98, due 1/4/99 in the amount of $6,748,623
(fully collateralized by $7,004,000 U.S.Treasury Bills, due
5/20/99, value $6,884,199) . . . . . . . . . . . . . . . . . . . . . . 3.50 6,746,000 6,746,000
____________
</TABLE>
<TABLE>
<CAPTION>
TOTAL REPURCHASE AGREEMENTS
<S> <C> <C>
(cost $23,746,000) . . . . . . . . . . . . . . . . . . . . . . . . . . $23,746,000
____________
TOTAL INVESTMENTS
(cost $67,847,312) . . . . . . . . . . . . . . . . . . . . . 98.9% $67,847,312
_______ ____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . 1.1% $ 767,604
_______ ____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $68,614,916
_______ ____________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS INSTITUTIONAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998
Money Government
Market Securities
Series Series
_____________ _____________
ASSETS: Investments in securities--See Statement of Investments
(including repurchase agreements
of $2,655,000 and $23,746,000
for the Money Market Series and the Government
Securities Series, respectively)--Note 2(b) . . . . . . $536,352,409 $ 67,847,312
<S> <C> <C>
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 1,746,510 248,402
Interest receivable . . . . . . . . . . . . . . . . . . . 2,490,541 564,611
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 16,963 9,278
_____________ _____________
540,606,423 68,669,603
_____________ _____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 233,909 28,147
Accrued expenses . . . . . . . . . . . . . . . . . . . . 90,309 26,540
_____________ _____________
324,218 54,687
_____________ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $540,282,205 $ 68,614,916
_____________ _____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $540,316,560 $ 68,614,916
Accumulated net realized gain (loss) on investments . . . (34,355) ---
_____________ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $540,282,205 $ 68,614,916
_____________ _____________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED) . . . . . . 540,316,560 68,614,916
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $1.00 $1.00
______ ______
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS INSTITUTIONAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1998
Money Government
Market Securities
Series Series
_____________ _____________
INVESTMENT INCOME
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $30,174,110 $ 4,559,239
____________ ____________
EXPENSES--Note 2(c): Management fee--Note 3(a) . . . . . . . . . . . . . . . . $ 2,701,351 $ 418,907
Shareholder servicing costs--Note 3(b) . . . . . . . . . 135,009 34,762
Custodian fees . . . . . . . . . . . . . . . . . . . . . 66,824 32,044
Trustees' fees and expenses--Note 3(c) . . . . . . . . . 66,050 9,134
Professional fees . . . . . . . . . . . . . . . . . . . . 37,037 28,535
Registration fees . . . . . . . . . . . . . . . . . . . . 24,958 32,595
Prospectus and shareholders' reports . . . . . . . . . . 9,184 9,599
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 31,420 1,543
____________ ____________
Total Expenses . . . . . . . . . . . . . . . 3,071,833 567,119
____________ ____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,102,277 3,992,120
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 2(b) . . . . . . . . . . . . . . . . . . . . (27,774) 10,367
____________ ____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $27,074,503 $ 4,002,487
____________ ____________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS INSTITUTIONAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Money Market Series Government Securities Series
________________________________ ________________________________
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
1998 1997 1998 1997
________________ _______________ ________________ _______________
OPERATIONS:
<S> <C> <C> <C> <C>
Investment income--net . . . . . . . . . . . . . . . $ 27,102,277 $ 26,296,105 $ 3,992,120 $ 7,308,145
Net realized gain (loss) on investments . . . . . . (27,774) 5,095 10,367 60,691
________________ _______________ ________________ _______________
Net Increase (Decrease) in Net Assets
Resulting from Operations . . . . . . . . . . . 27,074,503 26,301,200 4,002,487 7,368,836
________________ _______________ ________________ _______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . (27,102,277) (26,296,105) (3,992,120) (7,308,145)
Net realized gain on investments . . . . . . . . . . --- --- (10,396) ---
________________ _______________ ________________ _______________
Total Dividends . . . . . . . . . . . . . . . . . (27,102,277) (26,296,105) (4,002,516) (7,308,145)
________________ _______________ ________________ _______________
BENEFICIAL INTEREST TRANSACTIONS:
($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . 3,374,356,270 4,633,185,786 579,548,799 954,131,576
Dividends reinvested . . . . . . . . . . . . . . . . 2,871,717 3,514,763 1,501,989 1,378,967
Cost of shares redeemed . . . . . . . . . . . . . . (3,368,354,264) (4,588,425,068) (620,130,251) (950,602,391)
________________ _______________ ________________ _______________
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions . . . . . . . 8,873,723 48,275,481 (39,079,463) 4,908,152
________________ _______________ ________________ _______________
Total Increase (Decrease) in Net Assets . . . . 8,845,949 48,280,576 (39,079,492) 4,968,843
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . 531,436,256 483,155,680 107,694,408 102,725,565
________________ _______________ ________________ _______________
End of Period . . . . . . . . . . . . . . . . . . . $ 540,282,205 $ 531,436,256 $ 68,614,916 $ 107,694,408
________________ _______________ ________________ _______________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS INSTITUTIONAL MONEY MARKET FUND, MONEY MARKET SERIES
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Year Ended December 31,
______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
_______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .050 .051 .049 .054 .036
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.050) (.051) (.049) (.054) (.036)
_______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . 5.14% 5.17% 5.03% 5.57% 3.65%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .57% .57% .58% .62% .63%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 5.02% 5.06% 4.91% 5.43% 3.59%
Net Assets, end of period (000's Omitted) . . . . . . . . $540,282 $531,436 $483,156 $402,032 $362,825
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS INSTITUTIONAL MONEY MARKET FUND, GOVERNMENT SECURITIES SERIES
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Year Ended December 31,
______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
_______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .048 .048 .047 .052 .034
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.048) (.048) (.047) (.052) (.034)
_______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . 4.87% 4.95% 4.84% 5.36% 3.49%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .68% .61% .63% .65% .69%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 4.76% 4.84% 4.74% 5.23% 3.40%
Net Assets, end of period (000's Omitted) . . . . . . . . $68,615 $107,694 $102,726 $123,171 $ 120,281
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS INSTITUTIONAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--GENERAL:
Dreyfus Institutional Money Market Fund (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "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 (the "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 for each series.
The Funds' 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.
Under the terms of the custody agreements, the Fund receives net earnings
credits based on available cash balances left on deposit. During the period
ended December 31, 1998, the Government Securities Series received net earnings
credits of $2,359. Income earned under this arrangement is included in interest
income.
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 custodian and, pursuant to the terms of
the repurchase agreement, must have an aggregate market value greater than or
equal to the repurchase price plus accrued interest at all times. If the value
of the underlying securities falls below the value of the repurchase price plus
accrued interest, the Fund will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligation, the Fund maintains
the right to sell the underlying securities at market value and may claim any
resulting loss against the seller.
(C) EXPENSES: Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to both series are
allocated between them.
(D) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund, with respect to
both series, to declare dividends from investment income-net on each business
day; such dividends are paid monthly. Dividends from net realized capital gain,
with respect to both series, are normally declared and paid annually, but each
series may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" 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 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
$34,500 available for Federal income tax purposes to be applied against future
net securities profits, if any, realized subsequent to December 31, 1998. If not
applied, $6,500 of the carryover expires in fiscal 2002 and $28,000 expires in
fiscal 2006.
At December 31, 1998, 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 Statements 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 December 31, 1998, the Money Market Series and the Government Securities
Series were charged $35,966 and $10,135, 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 transfer agency services for the Fund. During the period
ended December 31, 1998, the Money Market Series and the Government Securities
Series were charged $72,118 and $3,578, respectively, pursuant to the transfer
agency agreement.
(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, 1998, 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 and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1998 by correspondence with the custodian
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 Dreyfus Institutional Money Market Fund at
December 31, 1998, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
New York, New York
February 4, 1999
DREYFUS INSTITUTIONAL MONEY MARKET FUND, GOVERNMENT SECURITIES SERIES
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
For State individual income tax purposes, the Government Securities Series
hereby designates 34.56% of the ordinary income dividends paid during its fiscal
year ended December 31, 1998 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.
[reg.tm logo]
(reg.tm)
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. 179/195AR9812
Institutional
Money Market
Fund
Annual Report
December 31, 1998
