August 24, 1994
DREYFUS CALIFORNIA TAX EXEMPT MONEY MARKET FUND
Supplement to Prospectus dated July 15, 1994
The following anticipated changes have occurred:
I. CONSUMMATION OF THE MERGER
The following information supplements and supersedes any contrary
information contained in the Fund's Prospectus.
On this date, the previously announced merger between The Dreyfus
Corporation ("Dreyfus") and a subsidiary of Mellon Bank Corporation ("Mellon")
was completed, and as a result, Dreyfus now is a wholly-owned subsidiary of
Mellon Bank, N.A. instead of a publicly-owned corporation.
Mellon is a publicly owned multibank holding company incorporated under
Pennsylvania law in 1971 and registered under the Federal Bank Holding Company
Act of 1956, as amended. Mellon provides a comprehensive range of financial
products and services in domestic and selected international markets. Mellon
is among the twenty-five largest bank holding companies in the United States
based on total assets. Mellon's principal wholly-owned subsidiaries are
Mellon Bank, N.A., Mellon Bank (DE) National Association, Mellon Bank (MD),
The Boston Company, Inc., AFCO Credit Corporation and a number of companies
known as Mellon Financial Services Corporations. Through its subsidiaries,
Mellon managed more than $130 billion in assets as of July 31, 1994, including
approximately $6 billion in mutual fund assets. As of June 30, 1994, various
subsidiaries of Mellon provided non-investment services, such as custodial or
administration services, for approximately $747 billion in assets, including
approximately $97 billion in mutual fund assets.
II. NEW DISTRIBUTOR
The following information supersedes and replaces any contrary
information contained in the Fund's Prospectus and specifically in the section
entitled "How to Buy Fund Shares."
The Fund's distributor is Premier Mutual Fund Services, Inc. (the
"Distributor"), located at One Exchange Place, Boston, Massachusetts 02109.
The Distributor is a wholly-owned subsidiary of Institutional Administration
Services, Inc., a provider of mutual fund administration services, the parent
company of which is Boston Institutional Group, Inc.
Accordingly, references in the Prospectus to Dreyfus Service Corporation
as the Fund's distributor should be substituted with Premier Mutual Fund
Services, Inc.
III. RESULTS OF FUND SHAREHOLDER VOTE
The following information supplements and supersedes any contrary
information contained in the Fund's Prospectus.
On August 4, 1994, the Fund's shareholders voted to (a) approve a new
investment advisory agreement with Dreyfus, which became effective upon
consummation of the merger between Dreyfus and a subsidiary of Mellon and (b)
change certain of the Fund's fundamental policies and investment
restrictions to permit the Fund to (i) borrow money from banks for temporary
or emergency (not leveraging) purposes in an amount up to 15% of the value of
the Fund's total assets, (ii) pledge its assets to the extent necessary to
secure permitted borrowings and make such policy non-fundamental, and (iii)
invest up to 10% of the value of its net assets in illiquid securities and
make such policy non-fundamental.
IV. REVISED MANAGEMENT POLICIES
The following information supplements and supersedes any contrary
information contained in the Fund's Prospectus.
Borrowing Money -- As a fundamental policy, the Fund is permitted to
borrow money only from banks for temporary or emergency (not leveraging)
purposes, in an amount up to 15% of the value of the Fund's total assets
(including the amount borrowed) valued at the lesser of cost or market, less
liabilities (not including the amount borrowed) at the time the borrowing is
made. While borrowings exceed 5% of the Fund's total assets, the Fund will
not make any additional investments.
Illiquid Securities -- The Fund may invest up to 10% of the value of its
net assets in securities as to which a liquid trading market does not exist,
provided such investments are consistent with the Fund's investment objective.
Such securities may include securities that are not readily marketable, such
as certain securities that are subject to legal or contractual restrictions on
resale and repurchase agreements providing for settlement in more than seven
days after notice. As to these securities, the Fund is subject to a risk that
should the Fund desire to sell them when a ready buyer is not available at a
price the Fund deems representative of their value, the value of the Fund's
net assets could be adversely affected.
