DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
PART B
(STATEMENT OF ADDITIONAL INFORMATION)
MARCH 25, 1994
This Statement of Additional Information, which is not a prospectus,
supplements and should be read in conjunction with the current Prospectus
of Dreyfus New Jersey Municipal Money Market Fund, Inc. (the "Fund"),
dated March 25, 1994, as it may be further revised from time to time. To
obtain a copy of the Fund's Prospectus, please write to the Fund at 144
Glenn Curtiss Boulevard, Uniondale, New York 11556-0144, or call the
following numbers:
Call Toll Free 1-800-645-6561
In New York City--Call 1-718-895-1206
On Long Island--Call 794-5254
The Dreyfus Corporation (the "Manager") serves as the Fund's
investment adviser.
Dreyfus Service Corporation (the "Distributor"), a wholly-owned
subsidiary of the Manager, is the distributor of the Fund's shares.
TABLE OF CONTENTS
Page
Investment Objective and Management Policies . . . . . . . .B-2
Management of the Fund . . . . . . . . . . . . . . . . . . .B-7
Management Agreement . . . . . . . . . . . . . . . . . . . .B-10
Shareholder Services Plan. . . . . . . . . . . . . . . . . .B-12
Purchase of Fund Shares. . . . . . . . . . . . . . . . . . .B-12
Redemption of Fund Shares. . . . . . . . . . . . . . . . . .B-13
Shareholder Services . . . . . . . . . . . . . . . . . . . .B-15
Determination of Net Asset Value . . . . . . . . . . . . . .B-18
Dividends, Distributions and Taxes . . . . . . . . . . . . .B-19
Yield Information. . . . . . . . . . . . . . . . . . . . . .B-19
Portfolio Transactions . . . . . . . . . . . . . . . . . . .B-20
Information About the Fund . . . . . . . . . . . . . . . . .B-21
Custodian, Transfer and Dividend Disbursing Agent,
Counsel and Independent Auditors. . . . . . . . . . . . . .B-21
Appendix A . . . . . . . . . . . . . . . . . . . . . . . . .B-22
Appendix B . . . . . . . . . . . . . . . . . . . . . . . . .B-24
Financial Statements . . . . . . . . . . . . . . . . . . . .B-26
Report of Independent Auditors . . . . . . . . . . . . . . .B-34
INVESTMENT OBJECTIVE AND MANAGEMENT POLICIES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"Description of the Fund."
The average distribution of investments (at value) in Municipal
Obligations by ratings for the fiscal year ended January 31, 1994, as
computed on a monthly basis, was as follows:
Fitch Moody's Standard
Investors Investors & Poor's
Service, Inc. or Service, Inc. or Corporation Percentage
("Fitch") ("Moody's") ("S&P") of Value
F-1+/F-1 MIG1/VMIG1, SP-1+/SP-1, 83.4%
P-1 A1+/A1
F-2 MIG 2 SP-2 .6%
AAA/AA Aaa/Aa AAA/AA 4.9%
Not Rated Not Rated Not Rated 11.1%
100.0%
Municipal Obligations. The term "Municipal Obligations" generally
includes debt obligations issued to obtain funds for various public
purposes, including the construction of a wide range of public facilities
such as airports, bridges, highways, housing, hospitals, mass
transportation, schools, streets and water and sewer works. Other public
purposes for which Municipal Obligations may be issued include refunding
outstanding obligations, obtaining funds for general operating expenses
and lending such funds to other public institutions and facilities. In
addition, certain types of industrial development bonds are issued by or
on behalf of public authorities to obtain funds to provide for the
construction, equipment, repair or improvement of privately operated
housing facilities, sports facilities, convention or trade show
facilities, airport, mass transit, industrial, port or parking facilities,
air or water pollution control facilities and certain local facilities for
water supply, gas, electricity, or solid waste or sewage disposal; the
interest paid on such obligations may be exempt from Federal income tax,
although current tax laws place substantial limitations on the size of
such issues. Such obligations are considered to be Municipal Obligations
if the interest paid thereon qualifies as exempt from Federal income tax
in the opinion of bond counsel to the issuer. There are, of course,
variations in the security of Municipal Obligations, both within a
particular classification and between classifications.
Floating and variable rate demand notes and bonds are tax exempt
obligations ordinarily having stated maturities in excess of 13 months,
but which permit the holder to demand payment of principal at any time or
at specified intervals not exceeding 13 months, in each case upon not more
than 30 days' notice. The issuer of such obligations ordinarily has a
corresponding right, after a given period, to prepay in its discretion the
outstanding principal amount of the obligation plus accrued interest upon
a specified number of days' notice to the holders thereof. The interest
rate on a floating rate demand obligation is based on a known lending
rate, such as a bank's prime rate, and is adjusted automatically each time
such rate is adjusted. The interest rate on a variable rate demand
obligation is adjusted automatically at specified intervals.
The yields on Municipal Obligations are dependent on a variety of
factors, including general economic and monetary conditions, money market
factors, conditions in the Municipal Obligations market, size of a
particular offering, maturity of the obligation and rating of the issue.
The imposition of the Fund's management fee, as well as other operating
expenses, will have the effect of reducing the yield to investors.
Municipal lease obligations or installment purchase contract
obligations (collectively, "lease obligations") have special risks not
ordinarily associated with Municipal Obligations. Although lease
obligations do not constitute general obligations of the municipality for
which the municipality's taxing power is pledged, a lease obligation
ordinarily is backed by the municipality's covenant to budget for,
appropriate and make the payments due under the lease obligation.
However, certain lease obligations contain "non-appropriation" clauses
which provide that the municipality has no obligation to make lease or
installment purchase payments in future years unless money is appropriated
for such purpose on a yearly basis. Although "non-appropriation" lease
obligations are secured by the leased property, disposition of the
property in the event of foreclosure might prove difficult. The Fund will
seek to minimize these risks by investing only in those lease obligations
that (1) are rated in one of the two highest rating categories for debt
obligations by at least two nationally recognized statistical rating
organizations (or one rating organization if the lease obligation was
rated by only one such organization) or (2) if unrated, are purchased
principally from the issuer or domestic banks or other responsible third
parties, in each case only if the seller shall have entered into an
agreement with the Fund providing that the seller or other responsible
third party will either remarket or repurchase the lease obligation within
a short period after demand by the Fund. The staff of the Securities and
Exchange Commission currently considers certain lease obligations to be
illiquid. Accordingly, not more than 10% of the value of the Fund's net
assets will be invested in lease obligations that are illiquid and in
other securities that are not readily marketable. See "Investment
Restriction No. 6" below.
The Fund will not purchase tender option bonds unless (a) the demand
feature applicable thereto is exercisable by the Fund within 13 months of
the date of such purchase upon no more than 30 days' notice and thereafter
is exercisable by the Fund no less frequently than annually upon no more
than 30 days' notice and (b) at the time of such purchase, the Manager
reasonably expects (i) based upon its assessment of current and historical
interest rate trends, that prevailing short-term tax exempt rates will not
exceed the stated interest rate on the underlying Municipal Obligations at
the time of the next tender fee adjustment and (ii) that the circumstances
which might entitle the grantor of a tender option to terminate the tender
option would not occur prior to the time of the next tender opportunity.
At the time of each tender opportunity, the Fund will exercise the tender
option with respect to any tender option bonds unless the Manager
reasonably expects, (x) based upon its assessment of current and
historical interest rate trends, that prevailing short-term tax exempt
rates will not exceed the stated interest rate on the underlying Municipal
Obligations at the time of the next tender fee adjustment, and (y) that
the circumstances which might entitle the grantor of a tender option to
terminate the tender option would not occur prior to the time of the next
tender opportunity. The Fund will exercise the tender feature with
respect to tender option bonds, or otherwise dispose of its tender option
bonds, prior to the time the tender option is scheduled to expire pursuant
to the terms of the agreement under which the tender option is granted.
The Fund otherwise will comply with the provisions of Rule 2a-7 in
connection with the purchase of tender option bonds, including, without
limitation, the requisite determination by the Board of Directors that the
tender option bonds in question meet the quality standards described in
Rule 2a-7, which, in the case of a tender option bond subject to a
conditional demand feature, would include a determination that the
security has received both the required short-term and long-term quality
rating or is determined to be of comparable quality. In the event of a
default of the Municipal Obligation underlying a tender option bond, or
the termination of the tender option agreement, the Fund would look to the
maturity date of the underlying security for purposes of compliance with
Rule 2a-7 and, if its remaining maturity was greater than 13 months, the
Fund would sell the security as soon as would be practicable. The Fund
will purchase tender option bonds only when it is satisfied that the
custodial and tender option arrangements, including the fee payment
arrangements, will not adversely affect the tax exempt status of the
underlying Municipal Obligations and that payment of any tender fees will
not have the effect of creating taxable income for the Fund. Based on the
tender option bond agreement, the Fund expects to be able to value the
tender option bond at par; however, the value of the instrument will be
monitored to assure that it is valued at fair value.
Ratings of Municipal Obligations. If, subsequent to its purchase by
the Fund,
(a) an issue of rated Municipal Obligations ceases to be rated in the
highest rating category by at least two rating organizations (or one
rating organization if the instrument was rated by only one such
organization) or the Fund's Board determines that it is no longer of
comparable quality or (b) the Manager becomes aware that any portfolio
security not so highly rated or any unrated security has been given a
rating by any rating organization below the rating organization's second
highest rating category, the Fund's Board will reassess promptly whether
such security presents minimal credit risk and will cause the Fund to take
such action as it determines is in the best interest of the Fund and its
shareholders; provided that the reassessment required by clause (b) is not
required if the portfolio security is disposed of or matures within five
business days of the Manager becoming aware of the new rating and the
Fund's Board is subsequently notified of the Manager's actions.
To the extent the ratings given by Moody's, S&P or Fitch for
Municipal Obligations may change as a result of changes in such
organizations or their rating systems, the Fund will attempt to use
comparable ratings as standards for its investments in accordance with the
investment policies contained in the Fund's Prospectus and this Statement
of Additional Information. The ratings of Moody's, S&P and Fitch
represent their opinions as to the quality of the Municipal Obligations
which they undertake to rate. It should be emphasized, however, that
ratings are relative and subjective and are not absolute standards of
quality. Although these ratings may be an initial criterion for selection
of portfolio investments, the Manager also will evaluate these securities
and the creditworthiness of the issuers of such securities.
Taxable Investments. Securities issued or guaranteed by the
U.S. Government or its agencies or instrumentalities include U.S.
Treasury securities, which differ in their interest rates,
maturities and times of issuance. Treasury Bills have initial
maturities of one year or less; Treasury Notes have initial
maturities of one to ten years; and Treasury Bonds generally have
initial maturities of greater than ten years. Some obligations
issued or guaranteed by U.S. Government agencies and
instrumentalities, for example, Government National Mortgage
Association pass-through certificates, are supported by the full
faith and credit of the U.S. Treasury; others, such as those of
the Federal Home Loan Banks, by the right of the issuer to borrow
from the U.S. Treasury; others, such as those issued by the
Federal National Mortgage Association, by discretionary authority
of the U.S. Government to purchase certain obligations of the
agency or instrumentality; and others, such as those issued by the
Student Loan Marketing Association, only by the credit of the
agency or instrumentality. These securities bear fixed, floating
or variable rates of interest. Interest may fluctuate based on
generally recognized reference rates or the relationship of rates.
While the U.S. Government provides financial support to such U.S.
Government-sponsored agencies or instrumentalities, no assurance
can be given that it will always do so, since it is not so
obligated by law. The Fund will invest in such securities only
when it is satisfied that the credit risk with respect to the
issuer is minimal.
Commercial paper consists of short-term, unsecured
promissory notes issued to finance short-term credit needs.
Certificates of deposit are negotiable certificates
representing the obligation of a bank to repay funds deposited
with it for a specified period of time.
Time deposits are non-negotiable deposits maintained in a
banking institution for a specified period of time (in no event
longer than seven days) at a stated interest rate. Investments
in time deposits generally are limited to London branches of
domestic banks that have total assets in excess of one billion
dollars. Time deposits which may be held by the Fund will not
benefit from insurance from the Bank Insurance Fund or the
Savings Association Insurance Fund administered by the Federal
Deposit Insurance Corporation.
Bankers' acceptances are credit instruments evidencing the
obligation of a bank to pay a draft drawn on it by a customer.
These instruments reflect the obligation both of the bank and of
the drawer to pay the face amount of the instrument upon
maturity. Other short-term bank obligations may include
uninsured, direct obligations bearing fixed, floating or variable
interest rates.
Repurchase agreements involve the acquisition by the Fund of
an underlying debt instrument, subject to an obligation of the
seller to repurchase, and the Fund to resell, the instrument at a
fixed price, usually not more than one week after its purchase.
The Fund's custodian or sub-custodian will have custody of, and
will hold in a segregated account, securities acquired by the
Fund under a repurchase agreement. Repurchase agreements are
considered by the staff of the Securities and Exchange Commission
to be loans by the Fund. In an attempt to reduce the risk of
incurring a loss on a repurchase agreement, the Fund will enter
into repurchase agreements only with domestic banks with total
assets in excess of one billion dollars or primary government
securities dealers reporting to the Federal Reserve Bank of New
York, with respect to securities of the type in which the Fund
may invest, and will require that additional securities be
deposited with it if the value of the securities purchased should
decrease below resale price. The Manager will monitor on an
ongoing basis the value of the collateral to assure that it
always equals or exceeds the repurchase price. Certain costs may
be incurred by the Fund in connection with the sale of the
securities if the seller does not repurchase them in accordance
with the repurchase agreement. In addition, if bankruptcy
proceedings are commenced with respect to the seller of the
securities, realization on the securities by the Fund may be
delayed or limited. The Fund will consider on an ongoing basis
the creditworthiness of the institutions with which it enters
into repurchase agreements.
Risk Factors -- Investing in New Jersey Municipal Obliga-
tions. Investors should consider carefully the special risks
inherent in the Fund's investment in New Jersey Municipal
Obligations. These risks result from the financial condition of
the State of New Jersey. Although New Jersey enjoyed a period of
economic growth in the mid-1980s, the State's economy slowed down
well before the onset of the national recession in July 1990.
Reflecting the downturn, the State's unemployment rate rose from
3.6% in the first quarter of 1989 to 9.1% in April 1993. As a
result of New Jersey's recent fiscal weakness, in July 1991, S&P
lowered its rating of the State's general obligation debt from
AAA to AA+. Investors should review Appendix A which sets forth
these and other risk factors.
Investment Restrictions. The Fund has adopted the following
restrictions as fundamental policies. These restrictions cannot
be changed without approval by the holders of a majority (as
defined in the Investment Company Act of 1940 (the "Act")) of the
Fund's outstanding voting shares. The Fund may not:
1. Purchase securities other than Municipal Obligations
and Taxable Investments as those terms are defined above and in
the Fund's Prospectus.
2. Borrow money, except 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)
based on 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 value of
the Fund's total assets, the Fund will not make any additional
investments.
3. Pledge, hypothecate, mortgage or otherwise encumber its
assets, except to secure borrowings for temporary or emergency
purposes.
4. Sell securities short or purchase securities on margin.
5. Underwrite the securities of other issuers, except that
the Fund may bid separately or as part of a group for the
purchase of Municipal Obligations directly from an issuer for its
own portfolio to take advantage of the lower purchase price
available.
6. Enter into repurchase agreements providing for
settlement in more than seven days after notice or purchase
securities which are not readily marketable (which securities
could include participation interests (including municipal
lease/purchase agreements) that are not subject to the demand
feature described in the Fund's Prospectus and floating and
variable rate demand notes and bonds as to which the Fund cannot
exercise the demand feature described in the Fund's Prospectus on
less than seven days' notice and as to which there is no
secondary market), if, in the aggregate, more than 10% of its net
assets would be so invested. The Fund may not invest in time
deposits maturing in more than seven days, and time deposits
maturing from two business days through seven calendar days may
not exceed 10% of the Fund's total assets.
7. Purchase or sell real estate, real estate investment
trust securities, commodities or commodity contracts, or oil and
gas interests, but this shall not prevent the Fund from investing
in Municipal Obligations secured by real estate or interests
therein.
8. Make loans to others except through the purchase of
qualified debt obligations and the entry into repurchase
agreements referred to above and in the Fund's Prospectus.
9. Invest more than 25% of its total assets in the
securities of issuers in any single industry; provided that there
shall be no such limitation on the purchase of Municipal
Obligations and, for temporary defensive purposes, securities
issued by domestic banks and obligations issued or guaranteed by
the U.S. Government, its agencies or instrumentalities.
10. Invest in companies for the purpose of exercising
control.
11. Invest in securities of other investment companies,
except as they may be acquired as part of a merger, consolidation
or acquisition of assets.
For purposes of Investment Restriction No. 9, industrial
development bonds, where the payment of principal and interest is
the ultimate responsibility of companies within the same
industry, are grouped together as an "industry." If a percentage
restriction is adhered to at the time of investment, a later
increase or decrease in percentage resulting from a change in
values or assets will not constitute a violation of such
restriction.
The Fund may make commitments more restrictive than the
restrictions listed above so as to permit the sale of Fund shares
in certain states. Should the Fund determine that a commitment
is no longer in the best interest of the Fund and its
shareholders, the Fund reserves the right to revoke the
commitment by terminating the sale of Fund shares in the state
involved.
MANAGEMENT OF THE FUND
Directors and officers of the Fund, together with infor-
mation as to their principal business occupations during at least
the last five years, are shown below. Each Director who is
deemed to be an "interested person" of the Fund, as defined in
the Act, is indicated by an asterisk.
Directors and Officers of the Fund
*DAVID W. BURKE, Director. Since October 1990, Vice President
and Chief Administrative Officer of the Manager. During the
period 1977-1990, Mr. Burke was involved in the management
of national television news, as Vice-President and Executive
Vice President of ABC News, and subsequently as President of
CBS News. His address is 200 Park Avenue, New York, New
York 10166.
SAMUEL CHASE, Director. Since 1982, President of Samuel Chase &
Company, Ltd., an economic consulting firm. From 1983 to
1989, Chairman of Chase, Brown & Blaxall, Inc., an economic
consulting firm. His address is 4410 Massachusetts Avenue,
N.W., Suite 408, Washington, D.C. 20016.
JONI EVANS, Director. Senior Vice President of the William
Morris Agency. From September 1987 to May 1993, Executive
Vice President of Random House, Inc., and from January 1991
to May 1993, President and Publisher of Turtle Bay Books;
from January 1987 to December 1990, Publisher of Random
House Adult Trade Division; and from 1985 to 1987, President
of Simon & Schuster-Trade Division. Her address is 1350
Avenue of the Americas, New York, New York 10019.
*LAWRENCE M. GREENE, Director. Legal Consultant to and a
director of the Manager, Executive Vice President and a
director of the Distributor and an officer, director or
trustee of other investment companies advised or
administered by the Manager. His address is 200 Park
Avenue, New York, New York 10166.
ARNOLD S. HIATT, Director. Chairman of the Stride Rite
Foundation. From 1969 to June 1992, Chairman of the Board,
President or Chief Executive Officer of The Stride Rite
Corporation, a multi-divisional footwear manufacturing and
retailing company. Mr. Hiatt is also a director of the
Cabot Corporation. His address is 400 Atlantic Avenue,
Boston, Massachusetts 02110.
DAVID J. MAHONEY, Director. President of David Mahoney Ventures
since 1983. From 1968 to 1983, he was Chairman and Chief
Executive Officer of Norton Simon Inc., a producer of
consumer products and services. Mr. Mahoney is also a
director of National Health Laboratories Inc. and a director
and member of the Executive Committee of NYNEX Corporation.
His address is 745 Fifth Avenue, Suite 700, New York, New
York 10151.
*RICHARD J. MOYNIHAN, Director, President and Investment Officer.
An employee of the Manager and an officer, director or
trustee of other investment companies advised or
administered by the Manager. His address is 200 Park
Avenue, New York, New York 10166.
BURTON N. WALLACK, Director. President and co-owner of Wallack
Management Company, a real estate management company
managing real estate in the New York City area. His address
is 18 East 64th Street, Suite 3D, New York, New York 10021.
Each of the "non-interested" Directors is also a director of
Dreyfus BASIC Municipal Fund, Dreyfus California Tax Exempt Bond
Fund, Inc., Dreyfus Connecticut Municipal Money Market Fund,
Inc., Dreyfus GNMA Fund, Inc., Dreyfus Intermediate Municipal
Bond Fund, Inc., Dreyfus Michigan Municipal Money Market Fund,
Inc., Dreyfus New York Tax Exempt Bond Fund, Inc. and Dreyfus
Ohio Municipal Money Market Fund, Inc. and a trustee of Dreyfus
Massachusetts Municipal Money Market Fund, Dreyfus Massachusetts
Tax Exempt Bond Fund, Dreyfus New York Tax Exempt Intermediate
Bond Fund, Dreyfus New York Tax Exempt Money Market Fund and
Dreyfus Pennsylvania Municipal Money Market Fund.
For so long as the Fund's plan described in the section
captioned "Shareholder Services Plan" remains in effect, the
Directors of the Fund who are not "interested persons" of the
Fund, as defined in the Act, will be selected and nominated by
the Directors who are not "interested persons" of the Fund.
The Fund does not pay any remuneration to its officers and
Directors, other than fees and expenses to those Directors who
are not officers, directors, employees or holders of 5% or more
of the outstanding voting securities of the Manager, which
totalled $21,334 for the fiscal year ended January 31, 1994 for
all such Directors as a group.
Officers of the Fund Not Listed Above
A. PAUL DISDIER, Vice President and Investment Officer. An
employee of the Manager and an officer of other investment
companies advised and administered by the Manager.
KAREN M. HAND, Vice President and Investment Officer. An
employee of the Manager and an officer of other investment
companies advised and administered by the Manager.
STEPHEN C. KRIS, Vice President and Investment Officer. An
employee of the Manager and an officer of other investment
companies advised and administered by the Manager.
JILL C. SHAFFRO, Vice President and Investment Officer. An
employee of the Manager and an officer of other investment
companies advised and administered by the Manager.
L. LAWRENCE TROUTMAN, Vice President and Investment Officer. An
employee of the Manager and an officer of other investment
companies advised and administered by The Manager.
SAMUEL J. WEINSTOCK, Vice President and Investment Officer. An
employee of the Manager and an officer of other investment
companies advised and administered by the Manager.
MONICA S. WIEBOLDT, Vice President and Investment Officer. An
employee of the Manager and an officer of other investment
companies advised and administered by the Manager.
DANIEL C. MACLEAN, Vice President. Vice President and General
Counsel of the Manager, Secretary of the Distributor and an
officer of other investment companies advised or
administered by the Manager.
JEFFREY N. NACHMAN, Vice President-Financial. Vice President
- Mutual Fund Accounting of the Manager and an officer of
other investment companies advised or administered by the
Manager.
JOHN J. PYBURN, Treasurer. Assistant Vice President of the
Manager and an officer of other investment companies advised
or administered by the Manager.
MARK N. JACOBS, Secretary. Secretary and Deputy General Counsel
of the Manager and an officer of other investment companies
advised or administered by the Manager.
PAUL T. MOLLOY, Controller. Senior Accounting Manager in the
Fund Accounting Department of the Manager and an officer of
other investment companies advised or administered by the
Manager.
ROBERT I. FRENKEL, Assistant Secretary. Senior Assistant General
Counsel to the Manager and an officer of other investment
companies advised or administered by the Manager.
CHRISTINE PAVALOS, Assistant Secretary. Assistant Secretary of
the Manager, the Distributor and other investment companies
advised or administered by the Manager.
To the Fund's knowledge, no shareholder owned 5% or more of
the Fund's outstanding stock on March 4, 1994.
The address of each officer of the Fund is 200 Park Avenue,
New York, New York 10166.
Directors and officers of the Fund, as a group, owned less
than 1% of the Fund's Common Stock outstanding on March 4, 1994.
The following persons are also officers and/or directors of
the Manager: Howard Stein, Chairman of the Board and Chief
Executive Officer; Julian M. Smerling, Vice Chairman of the Board
of Directors; Joseph S. DiMartino, President, Chief Operating
Officer and a Director; Alan M. Eisner, Vice President and Chief
Financial Officer; Robert F. Dubuss, Vice President; Elie M.
Genadry, Vice President--Institutional Sales; Peter A.
Santoriello, Vice President; Robert H. Schmidt, Vice President;
Kirk V. Stumpp, Vice President--New Product Development; Philip
L. Toia, Vice President; Katherine C. Wickham, Assistant Vice
President--Human Resources; Maurice Bendrihem, Controller; and
Mandell L. Berman, Alvin E. Friedman, Abigail Q. McCarthy and
David B. Truman, Directors.
MANAGEMENT AGREEMENT
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"Management of the Fund."
The Manager provides management services pursuant to the
Management Agreement (the "Agreement") dated April 13, 1988 with
the Fund, which is subject to annual approval by (i) the Fund's
Board of Directors or (ii) vote of a majority (as defined in the
Act) of the outstanding voting securities of the Fund, provided
that in either event the continuance also is approved by a
majority of the Directors who are not "interested persons" (as
defined in the Act) of the Fund or the Manager, by vote cast in
person at a meeting called for the purpose of voting on such
approval. The Agreement was approved by shareholders at a
shareholders' meeting held on October 2, 1990, and was last
approved by the Fund's Board of Directors, including a majority
of the Directors who are not "interested persons" of any party to
the Agreement, at a meeting held on March 31, 1993. The
Agreement is terminable without penalty, on 60 days' notice, by
the Fund's Board of Directors or by vote of the holders of a
majority of the Fund's outstanding voting shares, or, upon not
less than 90 days' notice, by the Manager. The Agreement will
terminate automatically in the event of its assignment (as
defined in the Act).
The Manager manages the Fund's portfolio of investments in
accordance with the stated policies of the Fund, subject to the
approval of the Fund's Board of Directors. The Manager is
responsible for investment decisions and provides the Fund with
Investment Officers who are authorized by the Board of Directors
to execute purchases and sales of securities. The Fund's
Investment Officers are A. Paul Disdier, Karen M. Hand, Stephen
C. Kris, Richard J. Moynihan, Jill C. Shaffro, L. Lawrence
Troutman, Samuel J. Weinstock and Monica S. Wieboldt. The
Manager also maintains a research department with a professional
staff of portfolio managers and securities analysts who provide
research services for the Fund as well as for other funds advised
by the Manager. All purchases and sales are reported for the
Directors' review at the meeting subsequent to such transactions.
All expenses incurred in the operation of the Fund are borne
by the Fund, except to the extent specifically assumed by the
Manager. The expenses borne by the Fund include: organizational
costs, taxes, interest, brokerage fees and commissions, if any,
fees of Directors who are not officers, directors, employees or
holders of 5% or more of the outstanding voting securities of the
Manager, Securities and Exchange Commission fees, state Blue Sky
qualification fees, advisory fees, charges of custodians,
transfer and dividend disbursing agents' fees, certain insurance
premiums, industry association fees, outside auditing and legal
expenses, costs of maintaining corporate existence, costs of
independent pricing services, costs attributable to investor
services (including, without limitation, telephone and personnel
expenses), costs of shareholders' reports and corporate meetings,
costs of preparing and printing prospectuses and statements of
additional information for regulatory purposes and for
distribution to existing shareholders, and any extraordinary
expenses.
The Manager pays the salaries of all officers and employees
employed by both it and the Fund, maintains office facilities,
and furnishes statistical and research data, clerical help,
accounting, data processing, bookkeeping and internal auditing
and certain other required services. The Manager also may make
such advertising and promotional expenditures, using its own
resources, as it from time to time deems appropriate.
As compensation for its services, the Fund has agreed to pay
the Manager a monthly management fee at the annual rate of .50 of
1% of the value of the Fund's average daily net assets. All fees
and expenses are accrued daily and deducted before declaration of
dividends to shareholders. The management fees payable for the
fiscal years ended January 31, 1992, 1993 and 1994 amounted to
$4,302,286, $3,983,470 and $3,873,077, respectively, which
amounts were reduced by $3,895,161, $2,531,204 and $2,323,846,
respectively, pursuant to undertakings by the Manager.
The Manager has agreed that if in any fiscal year the
aggregate expenses of the Fund, exclusive of taxes, brokerage,
interest on borrowings and (with the prior written consent of the
necessary state securities commissions) extraordinary expenses,
but including the management fee, exceed the expense limitation
of any state having jurisdiction over the Fund, the Fund may
deduct from the payment to be made to the Manager under the
Agreement, or the Manager will bear, such excess expense to the
extent required by state law. Such deduction or payment, if any,
will be estimated daily, and reconciled and effected or paid, as
the case may be, on a monthly basis.
The aggregate of the fees payable to the Manager is not
subject to reduction as the value of the Fund's net assets
increases.
SHAREHOLDER SERVICES PLAN
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"Shareholder Services Plan."
The Fund as adopted a Shareholder Services Plan (the "Plan")
pursuant to which the Fund reimburses the Distributor 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.
A quarterly report of the amounts expended under the Plan,
and the purposes for which such expenditures were incurred, must
be made to the Directors for their review. In addition, the Plan
provides that material amendments of the Plan must be approved by
the Board of Directors, and by the Directors who are not
"interested persons" (as defined in the Act) of the Fund and have
no direct or indirect financial interest in the operation of the
Plan, by vote cast in person at a meeting called for the purpose
of considering such amendments. The Plan is subject to annual
approval by such vote of the Directors cast in person at a
meeting called for the purpose of voting on the Plan. The Plan
is terminable at any time by vote of a majority of the Directors
who are not "interested persons" and have no direct or indirect
financial interest in the operation of the Plan.
PURCHASE OF FUND SHARES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"How to Buy Fund Shares."
The Distributor. The Distributor serves as the Fund's
distributor pursuant to an agreement which is renewable annually.
The Distributor also acts as distributor for the other funds in
the Dreyfus Family of Funds and for certain other investment
companies.
Using Federal Funds. The Shareholder Services Group, Inc.,
the Fund's transfer agent and dividend disbursing agent (the
"Transfer Agent"), or the Fund may attempt to notify the investor
upon receipt of checks drawn on banks that are not members of the
Federal Reserve System as to the possible delay in conversion
into Federal Funds and may attempt to arrange for a better means
of transmitting the money. If the investor is a customer of a
securities dealer, bank or other financial institution and his
order to purchase Fund shares is paid for other than in Federal
Funds, the securities dealer, bank or other financial
institution, acting on behalf of its customer, will complete the
conversion into, or itself advance, Federal Funds generally on
the business day following receipt of the customer order. The
order is effective only when so converted and received by the
Transfer Agent. An order for the purchase of Fund shares placed
by an investor with sufficient Federal Funds or cash balance in
his brokerage account with a securities dealer, bank or other
financial institution will become effective on the day that the
order, including Federal Funds, is received by the Transfer
Agent.
Dreyfus TeleTransfer Privilege. Dreyfus TeleTransfer
purchase orders may be made between the hours of 8:00 a.m. and
4:00 p.m., New York time, on any business day that the Transfer
Agent and the New York Stock Exchange are open. Such purchases
will be credited to the shareholder's Fund account on the next
bank business day. To qualify to use the Dreyfus TeleTransfer
Privilege, the initial payment for purchase of Fund shares must
be drawn on, and redemption proceeds paid to, the same bank and
account as are designated on the Account Application or
Shareholder Services Form on file. If the proceeds of a
particular redemption are to be wired to an account at any other
bank, the request must be in writing and signature-guaranteed.
See "Redemption of Fund Shares--Dreyfus TeleTransfer Privilege."
Reopening an Account. An investor may reopen an account
with a minimum investment of $100 without filing a new Account
Application during the calendar year the account is closed or
during the following calendar year, provided the information on
the old Account Application is still applicable.
REDEMPTION OF FUND SHARES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"How to Redeem Fund Shares."
Check Redemption Privilege. An investor may indicate on the
Account Application or by later written request that the Fund
provide Redemption Checks ("Checks") drawn on the Fund's account.
Checks will be sent only to the registered owner(s) of the
account and only to the address of record. The Account
Application or later written request must be manually signed by
the registered owner(s). Checks may be made payable to the order
of any person in an amount of $500 or more. When a Check is
presented to the Transfer Agent for payment, the Transfer Agent,
as the investor's agent, will cause the Fund to redeem a
sufficient number of full or fractional shares in the investor's
account to cover the amount of the Check. Dividends are earned
until the Check clears. After clearance, a copy of the Check
will be returned to the investor. Investors generally will be
subject to the same rules and regulations that apply to checking
accounts, although election of this Privilege creates only a
shareholder-transfer agent relationship with the Transfer Agent.
If the amount of the Check is greater than the value of the
shares in an investor's account, the Check will be returned
marked insufficient funds. Checks should not be used to close an
Account.
Wire Redemption Privilege. By using this Privilege, the
investor authorizes the Transfer Agent to act on wire or
telephone redemption instructions from any person representing
himself or herself to be the investor, and reasonably believed by
the Transfer Agent to be genuine. Ordinarily, the Fund will
initiate payment for shares redeemed pursuant to this Privilege
on the same business day if the Transfer Agent receives the
redemption request in proper form prior to Noon on such day;
otherwise the Fund will initiate payment on the next business
day. Redemption proceeds will be transferred by Federal Reserve
wire only to the commercial bank account specified by the
investor on the Account Application or Shareholder Services Form.
Redemption proceeds, if wired, must be in the amount of $1,000 or
more and will be wired to the investor's account at the bank of
record designated in the investor's file at the Transfer Agent,
if the investor's bank is a member of the Federal Reserve System,
or to a correspondent bank if the investor's bank is not a
member. Fees ordinarily are imposed by such bank and usually are
borne by the investor. Immediate notification by the
correspondent bank to the investor's bank is necessary to avoid a
delay in crediting the funds to the investor's bank account.
Investors with access to telegraphic equipment may wire
redemption requests to the Transfer Agent by employing the
following transmittal code which may be used for domestic or
overseas transmissions:
Transfer Agent's
Transmittal Code Answer Back Sign
144295 144295 TSSG PREP
Investors who do not have direct access to telegraphic
equipment may have the wire transmitted by contacting a TRT
Cables operator at 1-800-654-7171, toll free. Investors should
advise the operator that the above transmittal code must be used
and should also inform the operator of the Transfer Agent's
answer back sign.
To change the commercial bank or account designated to
receive wire redemption proceeds, a written request must be sent
to the Transfer Agent. This request must be signed by each
shareholder, with each signature guaranteed as described below
under "Stock Certificates; Signatures."
Dreyfus TeleTransfer Privilege. Investors should be aware
that if they have selected the Dreyfus TeleTransfer Privilege,
any request for a wire redemption will be effected as a Dreyfus
TeleTransfer transaction through the Automated Clearing House
("ACH") system unless more prompt transmittal specifically is
requested. Redemption proceeds will be on deposit in the
investor's account at an ACH member bank ordinarily two business
days after receipt of the redemption request. See "Purchase of
Fund Shares--Dreyfus TeleTransfer Privilege."
Stock Certificates; Signatures. Any certificates
representing Fund shares to be redeemed must be submitted with
the redemption request. Written redemption requests must be
signed by each shareholder, including each holder of a joint
account, and each signature must be guaranteed. Signatures on
endorsed certificates submitted for redemption also must be
guaranteed. The Transfer Agent has adopted standards and
procedures pursuant to which signature-guarantees in proper form
generally will be accepted from domestic banks, brokers, dealers,
credit unions, national securities exchanges, registered
securities associations, clearing agencies and savings
associations, as well as from participants in the New York Stock
Exchange Medallion Signature Program, the Securities Transfer
Agents Medallion Program ("STAMP") and the Stock Exchanges
Medallion Program. Guarantees must be signed by an authorized
signatory of the guarantor and "Signature-Guaranteed" must appear
with the signature. The Transfer Agent may request additional
documentation from corporations, executors, administrators,
trustees or guardians, and may accept other suitable verification
arrangements from foreign investors, such as consular
verification. For more information with respect to signature-
guarantees, please call one of the telephone numbers listed on
the cover.
Redemption Commitment. The Fund has committed itself to pay
in cash all redemption requests by any shareholder of record,
limited in amount during any 90-day period to the lesser of
$250,000 or 1% of the value of the Fund's net assets at the
beginning of such period. Such commitment is irrevocable without
the prior approval of the Securities and Exchange Commission and
is a fundamental policy of the Fund which may not be changed
without shareholder approval. In the case of requests for
redemption in excess of such amount, the Board of Directors
reserves the right to make payments in whole or in part in
securities or other assets in case of an emergency or any time a
cash distribution would impair the liquidity of the Fund to the
detriment of the existing shareholders. In such event, the
securities would be valued in the same manner as the Fund's
portfolio is valued. If the recipient sold such securities,
brokerage charges would be incurred.
Suspension of Redemptions. The right of redemption may be
suspended or the date of payment postponed (a) during any period
when the New York Stock Exchange is closed (other than customary
weekend and holiday closings), (b) when trading in the markets
the Fund ordinarily utilizes is restricted, or when an emergency
exists as determined by the Securities and Exchange Commission so
that disposal of the Fund's investments or determination of its
net asset value is not reasonably practicable or (c) for such
other periods as the Securities and Exchange Commission by order
may permit to protect the Fund's shareholders.
SHAREHOLDER SERVICES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"Shareholder Services."
Exchange Privilege. Shares of other funds purchased by
exchange will be purchased on the basis of relative net asset
value per share as follows:
A. Exchanges for shares of funds that are offered without
a sales load will be made without a sales load.
B. Shares of funds purchased without a sales load may be
exchanged for shares of other funds sold with a sales
load, and the applicable sales load will be deducted.
C. Shares of funds purchased with a sales load may be
exchanged without a sales load for shares of other
funds sold without a sales load.
D. Shares of funds purchased with a sales load, shares of
funds acquired by a previous exchange from shares
purchased with a sales load, and additional shares
acquired through reinvestment of dividends or
distributions of any such funds (collectively
referred to herein as "Purchased Shares") may be
exchanged for shares of other funds sold with a sales
load (referred to herein as "Offered Shares"), provided
that, if the sales load applicable to the Offered
Shares exceeds the maximum sales load that could
have been imposed in connection with the Purchased
Shares (at the time the Purchased Shares were
acquired), without giving effect to any reduced loads,
the difference will be deducted.
To accomplish an exchange under item D above, shareholders
must notify the Transfer Agent of their prior ownership of fund
shares and their account number.
To use this Privilege, an investor must give exchange
instructions to the Transfer Agent in writing, by wire or by
telephone. Telephone exchanges may be made only if the
appropriate "YES" box has been checked on the Account Application
or a separate signed Optional Services Form is on file with the
Transfer Agent. By using this Privilege, the investor authorizes
the Transfer Agent to act on telephonic, telegraphic or written
exchange instructions from any person representing himself or
herself to be the investor and reasonably believed by the
Transfer Agent to be genuine. Telephone exchanges may be subject
to limitations as to the amount involved or the number of
telephone exchanges permitted. Shares issued in certificate form
are not eligible for telephone exchange.
To establish a Personal Retirement Plan by exchange, shares
of the fund being exchanged must have a value of at least the
minimum initial investment required for the fund into which the
exchange is being made. For Dreyfus-sponsored Keogh Plans, IRAs
and IRAs set up under a Simplified Employee Pension Plan
("SEP-IRAs") with only one participant, the minimum initial
investment is $750. To exchange shares held in Corporate Plans,
403(b)(7) Plans and SEP-IRAs with more than one participant, the
minimum initial investment is $100 if the plan has at least
$2,500 invested among the funds in the Dreyfus Family of Funds.
To exchange shares held in Personal Retirement Plans, the shares
exchanged must have a current value of at least $100.
Dreyfus Auto-Exchange Privilege. Dreyfus Auto-Exchange
permits an investor to purchase, in exchange for shares of the
Fund, shares of another fund in the Dreyfus Family of Funds.
This Privilege is available only for existing accounts. Shares
will be exchanged on the basis of relative net asset value as
described above under "Exchange Privilege." Enrollment in or
modification or cancellation of this Privilege is effective three
business days following notification by the investor. An
investor will be notified if his account falls below the amount
designated to be exchanged under this Privilege. In this case,
the investor's account will fall to zero unless additional
investments are made in excess of the designated amount prior to
the next Auto-Exchange transaction. Shares held under IRA and
other retirement plans are eligible for this Privilege.
Exchanges of IRA shares may be made between IRA accounts and from
regular accounts to IRA accounts, but not from IRA accounts to
regular accounts. With respect to all other retirement accounts,
exchanges may be made only among those accounts.
The Exchange Privilege and Dreyfus Auto-Exchange Privilege
are available to shareholders resident in any state in which
shares of the fund being acquired may legally be sold. Shares
may be exchanged only between accounts having identical names and
other identifying designations.
Optional Services Forms and prospectuses of the other funds
may be obtained from the Distributor, 144 Glenn Curtiss
Boulevard, Uniondale, New York 11556-0144. The Fund reserves the
right to reject any exchange request in whole or in part. The
Exchange Privilege or Dreyfus Auto-Exchange Privilege may be
modified or terminated at any time upon notice to shareholders.
Automatic Withdrawal Plan. The Automatic Withdrawal Plan
permits an investor with a $5,000 minimum account to request
withdrawal of a specified dollar amount (minimum of $50) on
either a monthly or quarterly basis. Withdrawal payments are the
proceeds from sales of Fund shares, not the yield on the shares.
If withdrawal payments exceed reinvested dividends and
distributions, the investor's shares will be reduced and
eventually may be depleted. An Automatic Withdrawal Plan may be
established by completing the appropriate application available
from the Distributor. There is a service charge of $.50 for each
withdrawal check. Automatic Withdrawal may be terminated at any
time by the investor, the Fund or the Transfer Agent. Shares for
which certificates have been issued may not be redeemed through
the Automatic Withdrawal Plan.
Dreyfus Dividend Sweep Privilege. Dreyfus Dividend Sweep
Privilege allows investors to invest on the payment date their
dividends or dividends and capital gain distributions, if any,
from the Fund in shares of another fund in the Dreyfus Family of
Funds of which the investor is a shareholder. Shares of other
funds purchased pursuant to this Privilege will be purchased on
the basis of relative net asset value per share as follows:
A. Dividends and distributions paid by a fund may be
invested without imposition of a sales load in shares of other
funds that are offered without a sales load.
B. Dividends and distributions paid by a fund which does
not charge a sales load may be invested in shares of other funds
sold with a sales load, and the applicable sales load will be
deducted.
C. Dividends and distributions paid by a fund which
charges a sales load may be invested in shares of other funds
sold with a sales load (referred to herein as "Offered Shares"),
provided that, if the sales load applicable to the Offered Shares
exceeds the maximum sales load charged by the fund from which
dividends or distributions are being swept, without giving effect
to any reduced loads, the difference will be deducted.
D. Dividends and distributions paid by a fund may be
invested in shares of other funds that impose a contingent
deferred sales charge ("CDSC") and the applicable CDSC, if any,
will be imposed upon redemption of such shares.
DETERMINATION OF NET ASSET VALUE
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"How to Buy Fund Shares."
Amortized Cost Pricing. The valuation of the Fund's
portfolio securities is based upon their amortized cost which
does not take into account unrealized capital gains or losses.
This involves valuing an instrument at its cost and thereafter
assuming a constant amortization to maturity of any discount or
premium, regardless of the impact of fluctuating interest rates
on the market value of the instrument. While this method
provides certainty in valuation, it may result in periods during
which value, as determined by amortized cost, is higher or lower
than the price the Fund would receive if it sold the instrument.
The Board of Directors has established, as a particular
responsibility within the overall duty of care owed to the Fund's
investors, procedures reasonably designed to stabilize the Fund's
price per share as computed for the purpose of sales and
redemptions at $1.00. Such procedures include review of the
Fund's portfolio holdings by the Board of Directors, at such
intervals as it deems appropriate, to determine whether the
Fund's net asset value calculated by using available market
quotations or market equivalents deviates from $1.00 per share
based on amortized cost. Market quotations and market
equivalents used in such review are obtained from an independent
pricing service (the "Service") approved by the Board of
Directors. The Service values the Fund's investments based on
methods which include consideration of: yields or prices of
municipal bonds of comparable quality, coupon, maturity and type;
indications of values from dealers; and general market
conditions. The Service also may employ electronic data
processing techniques and/or a matrix system to determine
valuations.
The extent of any deviation between the Fund's net asset
value per share based upon available market quotations or market
equivalents and $1.00 per share based on amortized cost will be
examined by the Board of Directors. If such deviation exceeds
1/2 of 1%, the Board of Directors promptly will consider what
action, if any, will be initiated. In the event the Board of
Directors determines that a deviation exists which may result in
material dilution or other unfair results to investors or
existing shareholders, it has agreed to take such corrective
action as it regards as necessary and appropriate, including:
selling portfolio instruments prior to maturity to realize
capital gains or losses or to shorten average portfolio maturity;
withholding dividends or paying distributions from capital or
capital gains; redeeming shares in kind; or establishing a net
asset value per share by using available market quotations or
market equivalents.
New York Stock Exchange Closings. The holidays (as
observed) on which the New York Stock Exchange is closed
currently are: New Year's Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving and
Christmas.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The following information supplements and should be read in
conjunction with the section in Fund's Prospectus entitled
"Dividends, Distributions and Taxes."
Ordinarily, gains and losses realized from portfolio
transactions will be treated as capital gain or loss. However,
all or a portion of the gain realized from the disposition of
certain market discount bonds will be treated as ordinary income
under Section 1276 of the Intermediate Revenue Code of 1986, as
amended (the "Code").
YIELD INFORMATION
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"Yield Information."
For the seven-day period ended January 31, 1994, the Fund's
yield was 2.00% and effective yield was 2.02%. These yields
reflect waiver of a portion of the management fee, without which
the Fund's seven-day yield and effective yield for the period
ended January 31, 1994 would have been 1.70% and 1.71%,
respectively. See "Management of the Fund" in the Prospectus.
Yield is computed in accordance with a standardized method which
involves determining the net change in the value of a hypo-
thetical pre-existing Fund account having a balance of one share
at the beginning of a seven calendar day period for which yield
is to be quoted, dividing the net change by the value of the
account at the beginning of the period to obtain the base period
return, and annualizing the results (i.e., multiplying the base
period return by 365/7). The net change in the value of the
account reflects the value of additional shares purchased with
dividends declared on the original share and any such additional
shares and fees that may be charged to the shareholder's account,
in proportion to the length of the base period and the Fund's
average account size, but does not include realized gains and
losses or unrealized appreciation and depreciation. Effective
yield is computed by adding 1 to the base period return
(calculated as described above), raising that sum to a power
equal to 365 divided by 7, and subtracting 1 from the result.
Based upon a combined 1994 Federal and New Jersey state tax
rate of 43.62%, the Fund's tax equivalent yield for the seven-day
period ended January 31, 1994 was 3.55%. Without the portion of
the management fee waiver then in effect, the Fund's seven-day
tax equivalent yield for the period ended January 31, 1994 would
have been 3.02%. See "Management of the Fund" in the Prospectus.
Tax equivalent yield is computed by dividing that portion of the
yield or effective yield (calculated as described above) which is
tax exempt by 1 minus a stated tax rate and adding the quotient
to that portion, if any, of the yield of the Fund that is not tax
exempt.
The tax equivalent yield noted above represents the
application of the highest Federal and New Jersey marginal
personal income tax rates presently in effect. For Federal
personal income tax purposes, a 39.6% tax rate has been used.
For New Jersey gross income tax purposes, a 6.65% tax rate on
individuals, trust and estates has been used. The tax equivalent
figure, however, does not include the potential effect of any
local (including, but not limited to, county, district or city)
taxes, including applicable surcharges. In addition, there may
be pending legislation which could affect such stated tax rates
or yield. Each investor should consult its tax adviser, and
consider its own factual circumstances and applicable laws, in
order to ascertain the relevant tax equivalent yield.
Yields will fluctuate and are not necessarily representative
of future results. The investor should remember that yield is a
function of the type and quality of the instruments in the
portfolio, portfolio maturity and operating expenses. An inves-
tor's principal in the Fund is not guaranteed. See "Deter-
mination of Net Asset Value" for a discussion of the manner in
which the Fund's price per share is determined.
From time to time, the Fund may use hypothetical tax
equivalent yields or charts in its advertising. These
hypothetical yields or charts will be used for illustrative
purposes only and not as being representative of the Fund's past
or future performance.
From time to time, advertising materials for the Fund may
refer to or discuss then-current or past economic conditions,
developments and/or events, and actual or proposed tax
legislation. From time to time, advertising materials for the
Fund also may refer to statistical or other information
concerning trends relating to investment companies, as complied
by industry associations such as the Investment Company
Institute.
PORTFOLIO TRANSACTIONS
Portfolio securities ordinarily are purchased from and sold
to parties acting as either principal or agent. Newly-issued
securities are purchased directly from the issuer or from an
underwriter; other purchases and sales usually are placed with
those dealers from which it appears that the best price or
execution will be obtained. Usually no brokerage commissions, as
such, are paid by the Fund for such purchases and sales, although
the price paid usually includes an undisclosed compensation to
the dealer acting as agent. The prices paid to underwriters of
newly-issued securities usually include a concession paid by the
issuer to the underwriter, and purchases of after-market
securities from dealers ordinarily are executed at a price
between the bid and asked price. No brokerage commissions have
been paid by the Fund to date.
Transactions are allocated to various dealers by the Fund's
Investment Officers in their best judgment. The primary
consideration is prompt and effective execution of orders at the
most favorable price. Subject to that primary consideration,
dealers may be selected for research, statistical or other
services to enable the Manager to supplement its own research and
analysis with the views and information of other securities
firms.
Research services furnished by brokers through which the
Fund effects securities transactions may be used by the Manager
in advising other funds it advises and, conversely, research
services furnished to the Manager by brokers in connection with
other funds the Manager advises may be used by the Manager in
advising the Fund. Although it is not possible to place a dollar
value on these services, it is the opinion of the Manager that
the receipt and study of such services should not reduce the
overall expenses of its research department.
INFORMATION ABOUT THE FUND
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"General Information."
Each Fund share has one vote and, when issued and paid for
in accordance with the terms of the offering, is fully paid and
nonassessable. Fund shares are of one class and have equal
rights as to dividends and in liquidation. Shares have no
preemptive, subscription or conversion rights and are freely
transferable.
The Fund sends annual and semi-annual financial statements
to all its shareholders.
CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT,
COUNSEL AND INDEPENDENT AUDITORS
The Bank of New York, 110 Washington Street, New York, New
York 10286, is the Fund's custodian. The Shareholder Services
Group, Inc., a subsidiary of First Data Corporation, P.O. Box
9671, Providence, Rhode Island 02940-9671, is the Fund's transfer
and dividend disbursing agent. Neither The Bank of New York nor
The Shareholder Services Group, Inc. has any part in determining
the investment policies of the Fund or which portfolio securities
are to be purchased or sold by the Fund.
Stroock & Stroock & Lavan, 7 Hanover Square, New York, New
York 10004-2696, as counsel for the Fund, has rendered its
opinion as to certain legal matters regarding the due
authorization and valid issuance of the shares of Common Stock
being sold pursuant to the Fund's Prospectus.
Ernst & Young, 787 Seventh Avenue, New York, New York 10019,
independent auditors, have been selected as independent auditors
of the Fund.
APPENDIX A
RISK FACTORS -- INVESTING IN NEW JERSEY MUNICIPAL OBLIGATIONS.
The following information constitutes only a brief summary, does not
purport to be a complete description, and is based on information drawn
from official statements relating to securities offerings of the State of
New Jersey and various local agencies available as of the date of this
Statement of Additional Information. While the Fund has not independently
verified this information, it has no reason to believe that such
information is not correct in all material respects.
New Jersey's economic base is diversified, consisting of a variety of
manufacturing, construction and service industries, supplemented by rural
areas with selective commercial agriculture. New Jersey's principal
manufacturing industries produce chemicals, pharmaceutical, electrical
equipment and instruments, machinery, printing and food products. Other
economic activities include services, wholesale and retail trade,
insurance, tourism, petroleum refining and truck farming.
While New Jersey's economy continued to expand during the late 1980s,
the level of growth slowed considerably after 1987. Initially, this
slowdown was an expected response to the State's tight labor market and
the decrease in the number of persons entering the labor force. Late in
the decade, a decline in construction demand and in the rate of growth in
consumer spending as well as continued softness in the State's
manufacturing sector set the stage for the current recession in New
Jersey. The State's average annual unemployment rate was below the
national average from 1981 through 1990. In 1988, unemployment dropped to
its lowest level since 1969, averaging 3.8% for the year. Unemployment,
however, began to rise during 1989 and 1990, averaging 5.0% of the labor
force in New Jersey and 5.5% nationally. By August 1992, the State's
unemployment rate moved above the national average for the first time in a
decade, registering 9.4% in August 1992. In April 1993, the State's
unemployment rate was 9.1%. As a result of the State's recent fiscal
weakness, S&P, in July 1991, lowered its rating of the State's general
obligation debt from AAA to AA+.
The fiscal 1992 budget gap of $1.5 billion was closed through a
combination of one-time and recurring actions. The State's General Fund
ended fiscal 1992 with an undesignated fund balance of $836 million.
The fiscal year 1993 Appropriations Act forecasts Sales and Use Tax
collections of $3.647 billion, a decrease from receipts of $4.038 billion
for fiscal year 1992, Gross Income Tax collections of $4.35 billion, an
increase from receipts of $4.102 billion for fiscal year 1992, and
Corporation Business Tax collections of $1.06 billion, an increase from
receipts of $910.7 million for fiscal year 1992.
The State appropriated approximately $12.639 billion and $14.960
billion for fiscal 1991 and 1992, respectively. Total State
appropriations for fiscal 1992, were $14.96 billion. Estimated 1993 and
1994 State appropriations total $14.770 billion and $15.650 billion,
respectively. Of the $14.770 billion appropriated in fiscal year 1993
from the General Fund, the Property Tax Relief Fund, the Casino Control
Fund and the Casino Revenue Fund, $6.290 billion (42.6%) is appropriated
for State aid to local governments, $3.390 billion (22.9%) is appropriated
for grants-in-aid (payments to individuals or public or private agencies
for benefits to which a recipient is entitled by law or for the provision
of service on behalf of the State), $4.478 billion (30.4%) for direct
State services, $444.3 million (3.0%) for debt service on State general
obligation bonds and $167.5 million (1.1%) for capital construction.
As of December 31, 1992, the outstanding general obligation bonded
indebtedness of the State was approximately $3.6 billion. In fiscal year
1992, the State initiated a program under which it issued tax and revenue
anticipation notes to aid in providing effective cash flow management to
fund imbalances which occur in the collection and disbursement of the
General Fund and Property Tax Relief Fund revenues. On October 1, 1992,
the State issued $1.6 billion tax and revenue anticipation notes.
Such tax and revenue anticipated notes do not constitute a general
obligation of the State or a debt or liability within the meaning of the
State Constitution. Such notes constitute special obligations of the
State payable solely from moneys on deposit in the General Fund and
Property Tax Relief Fund which are attributable to the State's fiscal year
1993 and legally available for such payment.
APPENDIX B
Description of certain S&P's, Moody's and Fitch ratings:
S&P
Municipal Bond Ratings
An S&P municipal bond rating is a current assessment of the
creditworthiness of an obligor with respect to a specific obligation.
The ratings are based on current information furnished by the issuer
or obtained by S&P from other sources it considers reliable, and will
include: (1) likelihood of default-capacity and willingness of the
obligor as to the timely payment of interest and repayment of principal in
accordance with the terms of the obligation; (2) nature and provisions of
the obligation; and (3) protection afforded by, and relative position of,
the obligation in the event of bankruptcy, reorganization or other
arrangement under the laws of bankruptcy and other laws affecting
creditors' rights.
AAA
Debt rated AAA has the highest rating assigned by S&P. Capacity to
pay interest and repay principal is extremely strong.
AA
Debt rated AA has a very strong capacity to pay interest and repay
principal and differs from the highest rated issues only in a small
degree. The AA rating may be modified by the addition of a plus (+) or
minus (-) sign to show relative standing within such category.
Municipal Note Ratings
SP-1
The issuers of these municipal notes exhibit very strong or strong
capacity to pay principal and interest. Those issues determined to
possess overwhelming safety characteristics are given a plus (+) sign
designation.
Commercial Paper Ratings
The rating A is the highest rating and is assigned by S&P to issues
that are regarded as having the greatest capacity for payment. Issues in
this category are delineated with the numbers 1, 2 and 3 to indicate the
relative degree of safety. Paper rated A-1 indicates that the degree of
safety regarding timely payment is either overwhelming or very strong.
Those issues determined to possess overwhelming safety characteristics are
denoted with a plus (+) sign designation. Relative strength or weakness
of the various safety characteristics determines whether the issuer's
commercial paper is rated A-2 or A-3.
Moody's
Municipal Bond Ratings
Aaa
Bonds which are rated Aaa are judged to be the best quality. They
carry the smallest degree of investment risk and are generally referred to
as "gilt edge." Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong position
of such issues.
Aa
Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what generally are
known as high-grade bonds. They are rated lower than the best bonds
because margins of protection may not be as large as in Aaa securities or
fluctuation of protective elements may be of greater amplitude or there
may be other elements present which make the long-term risks appear
somewhat larger than in Aaa securities.
Moody's applies the numerical modifiers 1, 2 and 3 to show relative
standing within the major rating categories, except in the Aaa category.
The modifier 1 indicates a ranking for the security in the higher end of a
rating category; the modifier 2 indicates a mid-range ranking; and the
modifier 3 indicates a ranking in the lower end of a rating category.
Municipal Note Ratings
Moody's ratings for state and municipal notes and other short-term
loans are designated Moody's Investment Grade (MIG). Such ratings
recognize the difference between short-term credit risk and long-term
risk. Factors affecting the liquidity of the borrower and short-term
cyclical elements are critical in short-term ratings, while other factors
of major importance in bond risk, long-term secular trends for example,
may be less important over the short run.
A short-term rating may also be assigned on an issue having a demand
feature. Such ratings will be designated as VMIG or, if the demand
feature is not rated, as NR. Short-term ratings on issues with demand
features are differentiated by the use of the VMIG symbol to reflect such
characteristics as payment upon periodic demand rather than fixed maturity
dates and payment relying on external liquidity. Additionally, investors
should be alert to the fact that the source of payment may be limited to
the external liquidity with no or limited legal recourse to the issuer in
the event the demand is not met.
Moody's short-term ratings are designated Moody's Investment Grade as
MIG 1 or VMIG 1 through MIG 4 or VMIG 4. As the name implies, when
Moody's assigns an MIG or VMIG rating, all categories define an investment
grade situation.
MIG 1/VMIG 1
This designation denotes best quality. There is present strong
protection by established cash flows, superior liquidity support or
demonstrated broad-based access to the market for refinancing.
MIG 2/VMIG 2
This designation denotes high quality. Margins of protection are
ample although not so large as in the preceding group.
Commercial Paper Ratings
The rating Prime-1 (P-1) is the highest commercial paper rating
assigned by Moody's. Issuers of P-1 paper must have a superior capacity
for repayment of short-term promissory obligations, and ordinarily will be
evidenced by leading market positions in well established industries, high
rates of return on funds employed, conservative capitalization structures
with moderate reliance on debt and ample asset protection, broad margins
in earnings coverage of fixed financial charges and high internal cash
generation, and well established access to a range of financial markets
and assured sources of alternate liquidity. Issuers (or related
supporting institutions) rated Prime-2 (P-2) have a strong capacity for
repayment of short-term promissory obligations. This ordinarily will be
evidenced by many of the characteristics cited above but to a lesser
degree. Earnings trends and coverage ratios, while sound, will be more
subject to variation. Capitalization characteristics, while still
appropriate, may be more affected by external conditions. Ample alternate
liquidity is maintained.
Fitch
Municipal Bond Ratings
The ratings represent Fitch's assessment of the issuer's ability to
meet the obligations of a specific debt issue or class of debt. The
ratings take into consideration special features of the issue, its
relationship to other obligations of the issuer, the current financial
condition and operative performance of the issuer and of any guarantor, as
well as the political and economic environment that might affect the
issuer's future financial strength and credit quality.
AAA
Bonds rated AAA are considered to be investment grade and of the
highest credit quality. The obligor has an exceptionally strong ability
to pay interest and repay principal, which is unlikely to be affected by
reasonably foreseeable events.
AA
Bonds rated AA are considered to be investment grade and of very high
credit quality. The obligor's ability to pay interest and repay principal
is very strong, although not quite as strong as bonds rated AAA. Because
bonds rated in the AAA and AA categories are not significantly vulnerable
to foreseeable future developments, short-term debt of these issuers is
generally rated F-1+. Plus (+) and minus (-) signs are used with a rating
symbol to indicate the relative position of a credit within the rating
category.
Short-Term Ratings
Fitch's short-term ratings apply to debt obligations that are payable
on demand or have original maturities of up to three years, including
commercial paper, certificates of deposit, medium-term notes, and
municipal and investment notes.
Although the credit analysis is similar to Fitch's bond rating
analysis, the short-term rating places greater emphasis than bond ratings
on the existence of liquidity necessary to meet the issuer's obligations
in a timely manner.
F-1+
Exceptionally Strong Credit Quality. Issues assigned this rating are
regarded as having the strongest degree of assurance for timely payment.
F-1
Very Strong Credit Quality. Issues carrying this rating reflect an
assurance of timely payment only slightly less in degree than issues rated
F-1+.
F-2
Good Credit Rating. Issues carrying this rating have a satisfactory
degree of assurance for timely payments, but the margin of safety is not
as great as the F-1+ and F-1 categories.
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS JANUARY 31, 1994
TAX EXEMPT INVESTMENTS--100.0% AMOUNT VALUE
------------ ------------
<S> <C> <C>
NEW JERSEY--80.8%
Atlantic City, BAN 2.75%, 10/4/94..................................................... $ 9,400,000 $ 9,431,044
Atlantic County Improvement Authority, Revenue, VRDN
(Pooled Government Loan Program) 2.15% (LOC; Hongkong Shanghai Banking Corp.)
(a,b)............................................................................. 25,100,000 25,100,000
Bergen County, BAN 2.82%, 6/28/94..................................................... 12,000,000 12,000,908
Camden County, BAN:
2.75%, 2/23/94...................................................................... 10,375,000 10,376,830
3.25%, 2/23/94...................................................................... 4,900,000 4,901,434
Cape May County Municipal Utilities Authority, Solid Waste Revenue, RRR
(Daneco Project) 2.80%, 11/30/94 (GIC; Societe Generale)............................ 18,400,000 18,400,000
East Brunswick Township, BAN 3.25%, 1/3/95............................................ 10,000,000 10,090,000
Essex County, BAN 2.70%, Series C, 12/13/94........................................... 16,250,000 16,291,063
Essex County Improvement Authority, Revenue, VRDN (Pooled Government Loan Program)
2.05% (LOC; Sumitomo Bank) (a,b).................................................... 14,200,000 14,200,000
Hudson County Improvement Authority, VRDN (Essential Purpose Government Loan)
2.55% (LOC; Hongkong Shanghai Banking Corp.) (a,b).................................. 49,040,000 49,040,000
Mercer County, Refunding, GO Notes 2.65%, 7/1/94...................................... 3,000,000 3,000,594
Monmouth County Improvement Authority, Revenue, VRDN (Pooled Government Loan Program)
2.05% (LOC; Union Bank of Switzerland) (a,b)........................................ 38,000,000 38,000,000
New Jersey Economic Development Authority:
PCR, Refunding, VRDN (Hoffman La Roche) 2.30%, Series 85
(LOC; Wachovia Bank of Georgia) (a,b)............................................. 20,000,000 20,000,000
Revenue, CP (Keystone Project) 2.10%, 3/8/94 (LOC; Union Bank of Switzerland) (b)... 15,500,000 15,500,000
VRDN:
EDR:
(Exit 8A L.P. Project) 2.50% (LOC; The Bank of Tokyo) (a,b)..................... 7,500,000 7,500,000
(Hartz and Rex Associates) 2.60% (LOC; Bankers Trust) (a,b)..................... 2,000,000 2,000,000
(Kenwood USA Corp. Project) 3.20% (LOC; The Asahi Bank) (a,b)................... 7,400,000 7,400,000
(Merck and Co. Inc.) 2.70% (a).................................................. 1,000,000 1,000,000
(Northville American Terminal) 2.45% (LOC; Union Bank of Switzerland) (a,b)..... 2,000,000 2,000,000
(Polymeric Resource Corp. Project) 2.45%, Series C (LOC; Bank of Tokyo) (a,b)... 1,500,000 1,500,000
Refunding:
(Black Horse Pike Ltd. Project) 2.70% (Guaranteed by; Household Finance Corp.)
(a)......................................................................... 5,400,000 5,400,000
(El Dorado Terminal) 2.15%, Series A (LOC; Dow Chemical Co.) (a,b)............ 12,200,000 12,200,000
First Mortgage Gross Revenue
(Franciscan Oaks Project) 2.20%, Series B (LOC; Bank of Scotland) (a,b)......... 3,500,000 3,500,000
Industrial and Economic Development Revenue:
(Marriott Corp. Project) 2.60% (LOC; National Westminster Bank) (a,b)........... 17,900,000 17,900,000
(Merck and Co. Inc.) 2.45%, Series A and B (a).................................. 1,000,000 1,000,000
Manufacturing Facilities Revenue
(Rennoc Corp. Project) 2.55% (LOC; National Bank of Philadelphia) (a,b)......... 5,515,000 5,515,000
New Jersey Health Care Facilities Financing Authority, Revenue, VRDN
(Hospital Capital Asset Financing):
2.25%, Series A (LOC; Chemical Bank) (a,b)........................................ 18,700,000 18,700,000
2.25%, Series D (LOC; Chemical Bank) (a,b)........................................ 21,000,000 21,000,000
New Jersey Housing and Mortgage Finance Agency, Revenue 2.90%, 9/29/94
(GIC; Republic National Bank of New York)........................................... 10,000,000 10,000,000
</TABLE>
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1994
<TABLE>
<CAPTION>
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
------------ ------------
NEW JERSEY (CONTINUED)
<S> <C> <C>
New Jersey Sports and Exposition Authority, State Contract, VRDN
2.20%, Series C (BPA; Societe Generale and Insured; MBIA) (a)....................... $ 20,000,000 $ 20,000,000
New Jersey Turnpike Authority, Turnpike Revenue, Refunding, VRDN
2.35%, Series D (Insured; FGIC and Liquidity Agreement; Societe Generale) (a)....... 48,500,000 48,500,000
Ocean City, BAN 2.75%, 1/4/95......................................................... 7,600,000 7,627,366
Port Authority of New York and New Jersey:
CP 2.20%, 4/7/94 (Liquidity Facility; Daiwa Bank)................................... 11,650,000 11,650,000
VRDN:
Certificates Partnership 2.50% (a)................................................ 15,309,000 15,309,000
Special Obligation Revenue:
(Third Installment) 2.05%, Series 3 (LOC; Deutsche Bank) (a,b).................. 6,000,000 6,000,000
Versatile Structure Obligation 2.25%, Series 1
(SBPA: Industrial Bank of Japan, Sanwa Bank and Sumitomo Bank) (a)............ 39,300,000 39,300,000
Salem County Industrial Pollution Control Financing Authority, Revenue, CP
(Philadelphia Electric Co.) 2.15%, Series A, 2/23/94 (LOC; Toronto Dominion Bank)
(b)............................................................................... 11,400,000 11,400,000
Salem Municipal Port Authority, Port Development Revenue, VRDN
(South Jersey Process Technical Inc. Project) 2.70% (LOC; Bankers Trust) (a,b)...... 1,500,000 1,500,000
Sommerset County, BAN 2.71%, 10/28/94................................................. 22,753,000 22,754,509
State of New Jersey, TRAN 3%, 6/15/94................................................. 53,100,000 53,279,695
Sussex County, BAN 2.50%, 4/19/94..................................................... 5,375,000 5,375,000
Union County Industrial Pollution Control Financing Authority, PCR, Refunding, CP
(Exxon Project) 2%, 4/20/94 (Corp. Guaranty; Exxon Corp.)........................... 9,100,000 9,100,000
U.S. RELATED--19.2%
Commonwealth of Puerto Rico, TRAN 3%, Series A, 7/29/94............................... 100,000,000 100,128,920
Commonwealth of Puerto Rico Government Development Bank, Refunding, VRDN
1.75% (LOC: Credit Suisse and Sumitomo Bank) (a,b).................................. 33,000,000 33,000,000
Commonwealth of Puerto Rico Highway and Transportation Authority,
Highway Revenue, VRDN 2.05%, Series X (LOC: Landesbank, Swiss Bank Corp. and
Union Bank of Switzerland) (a,b).................................................... 13,000,000 13,000,000
------------
TOTAL INVESTMENTS (cost $760,871,363)................................................. $760,871,363
------------
------------
</TABLE>
SUMMARY OF ABBREVIATIONS
<TABLE>
<S> <C> <C> <C>
BAN Bond Anticipation Notes LOC Letter of Credit
BPA Bond Purchase Agreement MBIA Municipal Bond Insurance Association
CP Commercial Paper PCR Pollution Control Revenue
EDR Economic Development Revenue RRR Resources Recovery Revenue
FGIC Financial Guaranty Insurance Corporation SBPA Standby Bond Purchase Agreement
GIC Guaranteed Investment Contract TRAN Tax and Revenue Anticipation Notes
GO General Obligation VRDN Variable Rate Demand Notes
</TABLE>
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
SUMMARY OF COMBINED RATINGS (UNAUDITED)
<TABLE>
<CAPTION>
MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ------------------------ -------------------------- -------------------
<S> <C> <C> <C>
VMIG1/MIG1, P1 (c) SP1+/SP1, A1+/A1 (c) 89.0%
Aaa/Aa (d) AAA/AA (d) 4.5
Not Rated (e) Not Rated (e) 6.5
------
100.0%
------
------
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest rates.
(b) Secured by letters of credit. At January 31, 1994, 41.9% of the Fund's net
assets are backed by letters of credit issued by domestic banks, foreign
banks and corporations.
(c) P1 and A1 are the highest ratings assigned tax-exempt commercial paper by
Moody's and Standard & Poor's, respectively.
(d) Notes which are not MIG or SP rated are represented by bond ratings of the
issuers.
(e) Securities which, while not rated by Moody's and Standard & Poor's,
respectively, have been determined by the Fund's Board of Directors to be
of comparable quality to those rated securities in which the Fund may
invest.
See notes to financial statements.
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1994
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value--Note 1(a).......................................... $760,871,363
Cash.................................................................................... 14,029,850
Interest receivable..................................................................... 3,623,189
Prepaid expenses........................................................................ 60,350
------------
778,584,752
LIABILITIES:
Due to The Dreyfus Corporation.......................................................... $ 134,919
Accrued expenses........................................................................ 213,782 348,701
---------- ------------
NET ASSETS................................................................................ $778,236,051
------------
------------
REPRESENTED BY:
Paid-in capital......................................................................... $778,239,333
Accumulated net realized (loss) on investments.......................................... (3,282)
------------
NET ASSETS at value applicable to 778,239,333 shares outstanding
(2 billion shares of $.001 par value Common Stock authorized)........................... $778,236,051
------------
------------
NET ASSET VALUE, offering and redemption price per share
($778,236,051 / 778,239,333 shares)..................................................... $1.00
-----
-----
</TABLE>
STATEMENT OF OPERATIONS YEAR ENDED JANUARY 31, 1994
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................................... $ 18,960,969
EXPENSES:
Management fee--Note 2(a)............................................................. $3,873,077
Shareholder servicing costs--Note 2(b)................................................ 937,305
Custodian fees........................................................................ 85,051
Professional fees..................................................................... 63,943
Prospectus and shareholders' reports.................................................. 37,494
Directors' fees and expenses--Note 2(c)............................................... 21,334
Registration fees..................................................................... 4,230
Miscellaneous......................................................................... 27,415
----------
5,049,849
Less--reduction in management fee due to
undertaking--Note 2(a).............................................................. 2,323,846
----------
TOTAL EXPENSES.................................................................... 2,726,003
------------
INVESTMENT INCOME--NET.................................................................... 16,234,966
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b)............................................. (1,731)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................................... $ 16,233,235
------------
------------
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED JANUARY 31,
-------------------------------------
1993 1994
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income--net......................................................... $ 21,119,445 $ 16,234,966
Net realized (loss) on investments............................................. (580) (1,731)
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS......................... 21,118,865 16,233,235
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net......................................................... (21,119,445) (16,234,966)
-------------- --------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold.................................................. 1,203,018,403 1,594,549,698
Dividends reinvested........................................................... 19,716,285 14,863,253
Cost of shares redeemed........................................................ (1,264,872,608) (1,612,775,419)
-------------- --------------
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..................... (42,137,920) (3,362,468)
-------------- --------------
TOTAL (DECREASE) IN NET ASSETS............................................. (42,138,500) (3,364,199)
NET ASSETS:
Beginning of year.............................................................. 823,738,750 781,600,250
-------------- --------------
End of year.................................................................... $ 781,600,250 $ 778,236,051
-------------- --------------
-------------- --------------
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
Reference is made to page 2 of the Fund's prospectus dated March 25, 1994.
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act") as
a non-diversified open-end management investment company. Dreyfus Service
Corporation ("Distributor") acts as the exclusive distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor is
a wholly-owned subsidiary of The Dreyfus Corporation ("Manager").
It is the Fund's policy to maintain a continuous net asset value per share
of $1.00; the Fund has adopted certain investment, portfolio valuation and
dividend and distribution policies to enable it to do so.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Directors 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. Interest income, adjusted for amortization
of premiums and, when appropriate, discounts on investments, is earned from
settlement date and recognized on the accrual basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, it is
the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the provisions available to certain investment
companies, as defined in applicable sections of the Internal Revenue Code, and
to make distributions of income and net realized capital gain sufficient to
relieve it from all, or substantially all, Federal income taxes.
The Fund has an unused capital loss carryover of $3,282 available for
Federal income tax purposes to be applied against future net securities profits,
if any, realized subsequent to January 31, 1994. If not applied, $971 of the
carryover expires in fiscal 2000 and $2,311 expires in fiscal 2002.
At January 31, 1994 the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .50 of 1% of the average daily
value of the Fund's net assets and is payable monthly. The Agreement provides
for an expense reimbursement from the Manager should the Fund's aggregate
expenses, exclusive of taxes, interest on borrowings, brokerage and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. However, the Manager had
undertaken, from February 1, 1993 to waive receipt of the management fee payable
to it by the Fund in excess of an annual rate of .20 of 1% of the Fund's
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
average net assets. The reduction in the management fee, pursuant to the
undertaking, amounted to $2,323,846 for the year ended January 31, 1994.
The Manager may modify the expense limitation percentages from time to
time, provided that the resulting expense reimbursement would not be less than
the amount required pursuant to the Agreement.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
the Distributor an amount not to exceed an annual rate of .25 of 1% of the
Fund's average daily net assets for servicing shareholder accounts. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the Fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. During the year ended January 31, 1994, the Fund was charged an
aggregate of $332,366 pursuant to the Shareholder Services Plan.
(C) Certain officers and directors of the Fund are "affiliated persons," as
defined in the Act, of the Manager and/or the Distributor. Each director who is
not an "affiliated person" receives an annual fee of $2,500 and an attendance
fee of $500 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and Plan of
Merger providing for the merger of the Manager with a subsidiary of Mellon Bank
Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number of
contingencies, including the receipt of certain regulatory approvals and the
approvals of the stockholders of the Manager and of Mellon. The merger is
expected to occur in mid-1994, but could occur later.
Because the merger will constitute an "assignment" of the Fund's Management
Agreement with the Manager under the Investment Company Act of 1940, and thus a
termination of such Agreement, the Manager will seek prior approval from the
Fund's Board and shareholders.
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus New Jersey Municipal Money Market Fund, Inc., including the statement of
investments, as of January 31, 1994, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
January 31, 1994 by correspondence with the custodian. 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
Dreyfus New Jersey Municipal Money Market Fund, Inc. at January 31, 1994, the
results of its operations for the year then ended, the changes in its 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 /s/ Ernst & Young
March 4, 1994
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL MONEY MARKET FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended January
31, 1994 as "exempt-interest dividends" (not subject to regular Federal and, for
individuals who are New Jersey residents, New Jersey personal income taxes).
