Dreyfus Connecticut Municipal
Money Market Fund, Inc.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
110 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus, which must precede or
accompany this report.
Printed in U.S.A. 101AR939
Connecticut
Municipal
Money Market
Fund, Inc.
Semi-Annual Report
March 31, 1994
President's Letter
Dear Shareholder:
We are pleased to provide you with this semi-annual report for the
Dreyfus Connecticut Municipal Money Market Fund, Inc. For the period
ended March 31, 1994, the annualized yield provided by your Fund was
2.10%. After taking into account the effect of compounding, the
annualized effective yield was 2.12%.* Income dividends of approximately
$.01 per share paid during the period were exempt from Federal and State
of Connecticut personal income taxes.**
At our last reporting, we were keeping a watchful eye on the status of
the U.S. economy, the direction of interest rates and any significant
variation in inflationary indicators. Early in the period, economic
numbers hinted that the nation's growth might be more anemic than
anticipated. With no strong threat of a rekindling of inflation, the
municipal market responded with strength providing some of the lowest
historical yields in both the bond and money markets. In a somewhat
unusual turn of events, assets of municipal money market funds increased
(at one point reaching an all-time high of over $116 billion) despite the
unprecedented low yield environment.
In the first quarter of 1994, signs of economic strength began to emerge
along with the specter of a tighter Federal Reserve Board policy. On
February 4, through a direct announcement by Chairman Alan Greenspan, the
Federal Reserve Board raised the Federal Funds rate (for the first time
in five years) from 3% to 3.25%. Since then, we have seen two additional
increases. The initial short-term market reaction was a rise in rates and
a leveling off of money fund assets. However, as investors responded to
uncertainty in the long-term bond and equity markets, the municipal money
funds, once again, experienced substantial cash inflows. As a result, tax-
exempt money market assets have increased almost 4% since early February.
During this same period, state-specific funds gained over $1.5 billion in
assets representing an increase of just under 5%. This increased demand
for short-term tax exempt paper will produce lower yields for tax exempt
money market funds. However, given the new tax structure, on a taxable
equivalent basis, tax exempt yields continue to provide an attractive
alternative to taxable money market investments.
As we have mentioned in previous reports, technical factors (i.e.
supply/demand) frequently are the strongest influence on the direction of
short-term municipal rates. We expect that the month of April will be no
exception. Late in the month, tax exempt money market funds typically
experience an outflow of assets as investors redeem shares to meet tax
payment needs. As these redemptions occur, the decreased demand for short-
term securities places temporary upward pressure on yields. We have
structured your portfolio to capitalize on such periods of weakness and
to the extent that additional Connecticut-exempt paper becomes available
we will selectively commit to those issues in an effort to enhance your
Fund's return. In addition, we will continue to monitor closely any
additional action taken by the Federal Reserve Board and adjust the
portfolio accordingly. This watchful approach enabled the Fund to
continuously rank among the highest-yielding funds in its universe of
Connecticut tax exempt money market funds.(dagger)
We have included a current Statement of Investments and recent financial
statements for your review. We look forward to serving your investment
needs in the future.
Very truly yours,
Richard J. Moynihan
President
April 15, 1994
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily
and reinvested monthly.
** Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders.
(dagger) Source: IBC/Donoghue's Money Fund Report, 7-day yields as
reported for this 6-month reporting period. Rankings reflect the
absorption of certain Fund expenses which may be terminated. Without such
absorption, the Fund's rankings might have been lower. Yield fluctuates
and past performance is no guarantee of future results.
<TABLE>
<CAPTION>
Dreyfus Connecticut Municipal Money Market Fund, Inc.
Statement of Investments March 31, 1994 (Unaudited)
Principal
Tax Exempt Investments--100.0% Amount Value
------------ -------------
<S> <C> <C>
Connecticut--91.8%
Town of Bethel, BAN 2.45%, 7/14/94 $1,125,000 $1,125,799
Town of Cheshire, BAN:
2.40%, 8/11/94 1,220,000 1,219,944
2.41%, 8/11/94 5,400,000 5,400,175
State of Connecticut:
GO:
Economic Recovery Notes:
5.25%, Series A, 6/15/94 1,450,000 1,458,038
VRDN 2.20%, Series B (SBPA: Canadian Imperial Bank of Commerce,
Industrial Bank of Japan and National Westminster Bank) (a) 17,000,000 17,000,000
Revenue 5.20%, Series A, 3/15/95 12,775,000 13,022,308
Special Tax Obligation Revenue, VRDN (Transportation Infrastructure-1)
2.30% (LOC; Industrial Bank of Japan) (a,b) 12,000,000 12,000,000
Connecticut Development Authority, VRDN:
Health Care Revenue (Corp. for Independent Living Project)
2.25% (LOC; Credit Commerciale de France) (a,b) 17,550,000 17,550,000
Industrial Development (Martin-Brower Co. Project)
2.10% (LOC; Chemical Bank) (a,b) 1,215,000 1,215,000
PCR, Refunding:
(Connecticut Power and Light Co. Project):
2%, Series A (LOC; Deutshe Bank) (a,b) 18,400,000 18,400,000
2.45%, Series B (LOC; Union Bank of Switzerland) (a,b) 5,000,000 5,000,000
(Western Massachusetts Electric Co.)
2.35%, Series A (LOC; Union Bank of Switzerland) (a,b) 13,800,000 13,800,000
Solid Waste Revenue:
(Exeter Energy Project) 2.15%, Series A (LOC; Sanwa Bank) (a,b) 8,600,000 8,600,000
(Rand/Whitney Project) 2.30% (LOC; Chase Manhattan Bank) (a,b) 8,500,000 8,500,000
Connecticut Health and Educational Facilities Authority, Revenue, VRDN:
(Charlotte Hungerford Hospital) 2.10%, Series B (LOC; Mitsubishi Bank) (a,b) 800,000 800,000
(Kent School) 2.10%, Series A (LOC; Barclays Bank) (a,b) 6,500,000 6,500,000
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
CP 2.65%, Series D, 4/21/94 585,000 585,000
Revenue 2.65%, Series A, 5/16/94 15,000,000 15,000,000
Connecticut Special Assessment Unemployment Compensation Advance Fund,
Revenue, VRDN (Connecticut Unemployment):
2.20%, Series B (LOC: Industrial Bank of Japan and Mitsubishi Bank) (a,b) 9,000,000 9,000,000
3%, Series C (Insured; FGIC) (a) 2,290,000 2,292,230
City of Danbury, Notes 3.20%, 2/1/95 900,000 907,040
Town of Derby, BAN 2.33%, 7/22/94 2,850,000 2,849,972
Town of East Lyme, BAN 2.60%, 8/5/94 4,500,000 4,499,732
Town of Fairfield, Sewer Assessment Notes 2.23%, 6/10/94 2,050,000 2,050,000
City of Hartford, GO, BAN 2.23%, 6/15/94 5,600,000 5,599,959
Hartford Redevelopment Agency, MFMR, Refunding, VRDN (Underwood Tower Project)
2.20% (Insured; FSA and SBPA; Sumitomo Trust and Banking) (a) $15,300,000 $15,300,000
Town of Manchester:
BAN:
2.22%, Lot A, 7/15/94 2,683,000 2,683,147
2.22%, Lot B, 7/15/94 1,640,000 1,640,090
GO 6.30%, 9/15/94 260,000 264,555
Town of Middletown, BAN 2.40%, 4/15/94 3,500,000 3,500,064
Town of New Milford, BAN 2.44%, 8/18/94 1,000,000 1,000,031
City of Stamford, BAN:
2.11%, 7/19/94 2,250,000 2,246,102
2.17%, 7/19/94 5,000,000 5,000,284
3.06%, 3/22/95 5,000,000 5,000,439
Town of Westport, BAN 2.11%, 6/15/94 6,210,000 6,210,242
Township of Windsor, BAN:
2.37%, 7/19/94 4,050,000 4,049,553
2.38%, 9/15/94 2,950,000 2,951,042
U.S. Related--8.2%
Commonwealth of Puerto Rico:
Government Development Bank, Refunding, VRDN
2% (LOC: Credit Suisse and Sumitomo Bank) (a,b) 12,000,000 12,000,000
TRAN 3%, Series A, 7/29/94 6,000,000 6,005,837
Puerto Rico Electric Power Authority, Electric Revenue Bonds, Refunding
3.60%, 7/1/94 (Insured; FSA) 2,000,000 2,005,872
--------------
TOTAL INVESTMENTS
(cost $244,222,095) $244,232,455
==============
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <C> <C>
BAN Bond Anticipation Notes MFMR Multi-Family Mortgage Revenue
CP Commercial Paper PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Corporation SBPA Standby Bond Purchase Agreeement
FSA Financial Security Assurance TRAN Tax and Revenue Anticipation Notes
GO General Obligation VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Connecticut Municipal Money Market Fund, Inc.
Summary of Combined Ratings (Unaudited)
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
- - --------- ------- ----------------- -------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 62.7%
F2 VMIG2/MIG2, P2 SP2, A2 6.3
AAA/AA (e) Aaa/Aa, A (e) AAA/AA (e) 7.7
Not Rated (f) Not Rated (f) Not Rated (f) 23.3
-------
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 March 31, 1994, 46.4% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks and brokerage firms.
(c) Fitch currently provides creditworthiness information for a limited
amount of investments.
(d) P1 and A1 are the highest ratings assigned tax-exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(e) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
(f) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's 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 independent accountants' review report and notes to financial
statements.
<TABLE>
<CAPTION>
Dreyfus Connecticut Municipal Money Market Fund, Inc.
Statement of Assets and Liabilities March 31, 1994 (Unaudited)
<S> <C>
ASSETS:
Investments in securities, at value
(cost $244,222,095)--see statement $244,232,455
Cash 5,448,216
Receivable for investment securities sold 6,001,808
Interest receivable 1,291,756
Prepaid expenses 22,199
Due from The Dreyfus Corporation 53,284
--------------
257,049,718
LIABILITIES;
Accrued expenses and other liabilities 99,659
--------------
NET ASSETS $256,950,059
==============
REPRESENTED BY:
Paid-in capital $256,990,202
Accumulated net realized (loss) on investments (50,503)
Accumulated gross unrealized appreciation on investments 10,360
--------------
NET ASSETS at value applicable to 256,990,202 outstanding shares of Common
Stock, equivalent to $1.00 per share (1 billion shares of $.001 par value
authorized) $256,950,059
==============
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations six months ended March 31, 1994 (Unaudited)
<S> <C> <C>
INVESTMENT INCOME:
Interest Income $2,852,576
Expenses:
Management fee--Note 2(a) $623,105
Shareholder servicing costs--Note 2(b) 122,850
Registration fees 15,353
Custodian fees 13,592
Auditing fees 13,342
Legal fees 6,408
Prospectus and shareholders' reports 3,984
Directors' fees and expenses--Note 2(c) 2,583
Miscellaneous 12,293
--------------
813,510
Less--reduction in management fee due to
undertakings--Note 2(a) 572,268
--------------
Total Expenses 241,242
--------------
INVESTMENT INCOME--NET 2,611,334
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments--Note 1(b) $1,762
Net unrealized appreciation on investments 8,370
--------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 10,132
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,621,466
==============
</TABLE>
See independent accountants' review report and notes to financial
statements.
<TABLE>
<CAPTION>
Dreyfus Connecticut Municipal Money Market Fund, Inc.
Statement of Changes in Net Assets
Year Ended Six Months Ended
September 30, March 31, 1994
1993 (Unaudited)
-----------------------------------
<S> <C> <C>
OPERATIONS:
Investment income--net $5,132,851 $2,611,334
Net realized gain (loss) on investments (52,103) 1,762
Net unrealized appreciation (depreciation) on investments for the period (6,424) 8,370
-------------- --------------
Net Increase In Net Assets Resulting From Operations 5,074,324 2,621,466
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net (5,132,851) (2,611,334)
Net realized gain on investments (36,943) --
-------------- --------------
Total Dividends (5,169,794) (2,611,334)
-------------- --------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold 307,575,621 263,750,097
Dividends reinvested 4,977,777 2,424,418
Cost of shares redeemed (307,149,788) (221,522,505)
-------------- --------------
Increase In Net Assets From Capital Stock Transactions 5,403,610 44,652,010
-------------- --------------
Total Increase In Net Assets 5,308,140 44,662,142
NET ASSETS:
Beginning of period 206,979,777 212,287,917
-------------- --------------
End of period $212,287,917 $256,950,059
============== ==============
</TABLE>
See independent accountants' review report and notes to financial
statements.
<TABLE>
<CAPTION>
Dreyfus Connecticut Municipal Money Market Fund, Inc.
Financial Highlights
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from information provided in the Fund's
financial statements.
Year Ended September 30, Six Months Ended
------------------------------------------------ March 31, 1994
PER SHARE DATA: 1990(1) 1991 1992 1993 (Unaudited)
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.0000 $1.0000 $1.0000 $1.0002 $.9998
--------- --------- --------- --------- ---------
Investment Operations:
Investment income--net .0131 .0470 .0323 .0230 .0215
Net realized and unrealized gain (loss) on investments -- -- .0002 (.0004) --
--------- --------- --------- --------- ---------
Total from Investment Operations .0131 .0470 .0325 .0226 .0215
--------- --------- --------- --------- ---------
Distributions:
Dividends from investment income--net (.0131) (.0470) (.0323) (.0228) (.0215)
Dividends from net realized gain on investments -- -- -- (.0002) --
--------- --------- --------- --------- ---------
Total Distributions (.0131) (.0470) (.0323) (.0230) (.0215)
--------- --------- --------- --------- ---------
Net asset value, end of period $1.0000 $1.0000 $1.0002 $.9998 $.9998
========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN 5.95%(2) 4.80% 3.28% 2.34% 2.11%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets -- -- .04% .12% .19%(2)
Ratio of net investment income
to average net assets 5.97%(2) 4.54% 3.22% 2.30% 2.10%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager 1.66%(2) .67% .63% .55% .46%(2)
Net Assets, end of period (000's Omitted) $52,971 $187,301 $206,980 $212,288 $256,950
</TABLE>
(1) From July 12, 1990 (commencement of operations) to September 30,
1990.
(2) Annualized.
See independent accountants' review report and notes to financial
statements.
Dreyfus Connecticut Municipal Money Market Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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 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, if any, 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.
At March 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 has undertaken from October 1, 1993
through January 24, 1994, to reduce the management fee paid by the Fund,
to the extent that the Fund's aggregate expenses (excluding certain
expenses as described above) exceeded specified annual percentages of the
Fund's average daily net assets. The Manager has currently undertaken
from January 25, 1994 through June 30, 1994, or until such time as the
net assets of the Fund exceed $325 million, regardless of whether they
remain at that level, to waive receipt of the management fee payable to
it by the Fund in excess of an annual rate of .10 of 1% of the Fund's
average daily net assets. The reduction in management fee, pursuant to
the undertakings, amounted to $572,268 for the six months ended March 31,
1994.
(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 value 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
six months ended March 31, 1994, the Fund was charged an aggregate of
$45,366 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
$1,000.
(d) On December 5, 1993, the Manager entered into an Agreement and Plan
of Merger (the "Merger Agreement") 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 receipt of certain regulatory
approvals and approvals of the stockholders of the Manager and of Mellon.
The merger is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
Dreyfus Connecticut Municipal Money Market Fund, Inc.
Review Report of Ernst & Young, Independent Accountants
Shareholders and Board of Directors
Dreyfus Connecticut Municipal Money Market Fund, Inc.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Connecticut Municipal Money Market Fund, Inc., including the
statement of investments, as of March 31, 1994, and the related
statements of operations and changes in net assets and financial
highlights for the six month period ended March 31, 1994. These financial
statements and financial highlights are the responsibility of the Fund's
management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data, and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted auditing
standards, which will be performed for the full year with the objective
of expressing an opinion regarding the financial statements and financial
highlights taken as a whole. Accordingly, we do not express such an
opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial
highlights referred to above for them to be in conformity with generally
accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year
ended September 30, 1993 and financial highlights for each of the four
years in the period ended September 30, 1993 and in our report dated
November 4, 1993, we expressed an unqualified opinion on such statement
of changes in net assets and financial highlights.
New York, New York
May 9, 1994
