LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this semi-annual report for the
Dreyfus Michigan Municipal Money Market Fund, Inc. For the six-month period
ended March 31, 1995, the annualized yield provided by your Fund was 3.22%,
and the annualized effective yield was 3.27% after taking into account the
effect of compounding.* Income dividends of approximately $.016 per share
paid during the period were exempt from Federal and State of Michigan
personal income taxes.**
Our last letter recapped the series of Federal Reserve Board moves
throughout the first half of 1994--moves designed to reach a more neutral
monetary policy stance in response to continued economic expansion. By
November 15, total monetary policy actions taken in 1994 increased the
discount rate from 3.00% to 4.75%. In addition, the Federal Funds rate moved
from 3.00% to 5.50% between February and November of last year. On February 1
of this year, the Fed continued its policy as it raised both the Federal
Funds and discount rates an additional 50 basis points to 6.00% and 5.25%,
respectively. Yields on municipal money market funds increased in response to
these higher short-term rates.
One of the most significant events occurring in the second half of last
year to affect the short-term municipal market was the bankruptcy filing by
Orange County, California. Because your Fund holds only paper exempt from
Michigan taxes, it had no exposure to Orange County, California. However, the
uncertainty which existed at the time of the County's disclosure created some
temporary market weakness. While there were several attractive buying
opportunities in the national market at the time, scarcity of Michigan
short-term notes limited our ability to participate.
In the coming weeks we expect to see some temporary weakness in the
short-term municipal market. In late April, 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. Your Fund
does not typically experience these outflows, allowing us to capitalize on
such periods of market weakness. At all times, we will selectively seek out
high quality Michigan issues that provide the portfolio with a high level of
diversity and liquidity and double tax-free income.
We have included a current Statement of Investments and recent financial
statements for your review and look forward to serving your investment needs
in the future.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 13, 1995
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.
<TABLE>
<CAPTION>
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1995 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
------------- -------------
<S> <C> <C>
MICHIGAN--98.4%
Birmingham, EDR, VRDN (Brown Street Association Project)
4.50% (LOC; Bankers Trust) (a,b)........................................ $ 2,000,000 $ 2,000,000
Delta County Economic Development Corp., EIR (Mead-Escambia Paper Co.):
Refunding, CP 4.10%, Series A, 4/26/95 (LOC; Swiss Bank Corp.) (b)...... 1,500,000 1,500,000
VRDN 4.45% (LOC; Union Bank of Switzerland) (a,b)....................... 1,400,000 1,400,000
City of Detroit, TAN 4.25%, Series B, 5/1/95 (LOC; National Bank of Detroit) (b) 1,000,000 1,000,518
Grand Rapids, Water Supply System Revenue, Refunding, VRDN
4.30% (Insured; FGIC) (a)............................................... 3,000,000 3,000,000
Grand Rapids Economic Development Corp., LOR, Refunding, VRDN (Calder)
4.20%, Series A (LOC; Old Kent Bank and Trust) (a,b).................... 990,000 990,000
Kalamazoo County Economic Development Corp., Industrial and Economic
Development Revenue, VRDN (WBC Properties Limited Project)
4.625% (LOC; Old Kent Bank and Trust) (a,b)............................. 3,000,000 3,000,000
State of Michigan:
GO Notes 5%, 9/29/95.................................................... 5,000,000 5,022,155
School Loan Notes 4.25%, Series B, 4/11/95.............................. 2,000,000 2,000,242
Michigan Building Authority, Revenue, Refunding 5.20%, 10/1/95.............. 1,000,000 1,003,636
Michigan Housing Development Authority:
LOR, Refunding, VRDN (Harbortown Limited Divide Project)
4.25% (LOC; Bankers Trust) (a,b)...................................... 1,000,000 1,000,000
MFHR, CP 3.80%, Series A, 4/27/95 (LOC; Sanwa Bank) (b)................. 2,000,000 2,000,000
Michigan Job Development Authority, PCR, VRDN
(Mazda Motor Manufacturing USA Corp. Project) 4.25% (LOC; Sumitomo Bank) (a,b) 3,000,000 3,000,000
Michigan Municipal Bond Authority, Revenue:
Local Government Loan Program 6.50%, Series B, 5/1/95 (Insured; FGIC)... 1,325,000 1,327,310
Notes 4.75%, Series B, 7/20/95.......................................... 3,500,000 3,507,605
RAN 4.25%, Series A, 5/5/95............................................. 7,000,000 7,003,544
Michigan Strategic Fund, LOR, VRDN:
4.35%, Series C-1 (LOC; Comerica Bank) (a,b)............................ 2,200,000 2,200,000
(Coil Center Corp. Project) 5.125% (LOC; Tokai Bank) (a,b).............. 1,000,000 1,000,000
(Dow Chemical Co. Project) 4.40% (Corp. Guaranty; Dow Chemical Co.) (a). 900,000 900,000
(Fritz and Caroline Huebner Trust/Plascore)
4.35%, Series B-2 (LOC; Comerica Bank) (a,b).......................... 900,000 900,000
(Hi-Lex Controls Inc. Project) 4.30% (LOC; Bank of Tokyo) (a,b)......... 2,900,000 2,900,000
(K&M Machine Fabric) 4.35%, Series A-4 (LOC; Comerica Bank) (a,b)....... 1,000,000 1,000,000
Refunding (Louisiana-Pacific Corp.) 4.25% (LOC; Wachovia Bank) (a,b).... 2,600,000 2,600,000
(Thorn Apple Valley Inc. Project) 4.75% (LOC; Old Kent Bank and Trust) (a,b) 2,600,000 2,600,000
Midland County Economic Development Corp., Economic Development,
LOR, VRDN (Dow Chemical Co. Project)
4.40%, Series A (Corp. Guaranty; Dow Chemical Co.) (a).................. 7,200,000 7,200,000
Sterling Heights Economic Development Corp., LOR, Refunding,
VRDN (Sterling Shopping Center) 4.40% (LOC; National Bank of Detroit) (a,b) 1,455,000 1,455,000
Wayne-Westland Communities Schools, SAAN 4.25%, 4/24/95..................... 1,000,000 1,000,335
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- -------------
U.S. RELATED-1.6%
Puerto Rico Industrial, Medical and Environmental Pollution Control Facilities
Financing Authority, Revenue 4%, 9/1/95 (LOC; ABN-Amro Bank) (b)........ $ 1,000,000 $ 1,000,407
-------------
TOTAL INVESTMENTS (cost $63,510,752)........................................ $63,510,752
=============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
CP Commercial Paper MFHR Multi-Family Housing Revenue
EDR Economic Development Revenue PCR Pollution Control Revenue
EIR Environmental Improvement Revenue RAN Revenue Anticipation Notes
FGIC Financial Guaranty Insurance Company SAAN State Aid Anticipation Notes
GO General Obligation TAN Tax Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
LOR Limited Obligation Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
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) 76.5%
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 12.0
Not Rated (f) Not Rated (f) Not Rated (f) 11.5
--------
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 March 31, 1995, 47.8% of the Fund's
net assets are backed by letters of credit issued by domestic banks and
foreign banks.
(c) Fitch currently provides creditworthiness information for a limited
number 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.
(g) At March 31, 1995, the Fund had $22,755,407 (34.5% of net assets)
invested in securities whose payment of principal and interest is
dependent upon revenues generated from industrial projects.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $63,510,752
Cash.................................................................... 1,707,291
Interest receivable..................................................... 792,273
Prepaid expenses........................................................ 9,723
-------------
66,020,039
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $21,628
Accrued expenses and other liabilities.................................. 46,605 68,233
-------- -------------
NET ASSETS ................................................................ $65,951,806
=============
REPRESENTED BY:
Paid-in capital......................................................... $65,993,449
Accumulated net realized (loss) on investments.......................... (41,643)
-------------
NET ASSETS at value applicable to 65,993,449 outstanding shares of
Common Stock, equivalent to $1.00 per share
(1 billion shares of $.001 par value authorized)........................ $65,951,806
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1995 (UNAUDITED)
INVESTMENT INCOME:
<S> <C> <C>
INTEREST INCOME......................................................... $1,197,799
EXPENSES:
Management fee-Note 2(a).............................................. $154,039
Shareholder servicing costs-Note 2(b)................................. 41,141
Auditing fees......................................................... 20,615
Legal fees............................................................ 7,729
Prospectus and shareholders' reports.................................. 4,356
Directors' fees and expenses-Note 2(c)................................ 3,685
Registration fees..................................................... 1,740
Custodian fees........................................................ 1,281
Miscellaneous......................................................... 7,335
----------
241,921
Less-reduction in management fee due to
undertaking-Note 2(a)............................................. 38,109
----------
TOTAL EXPENSES.................................................. 203,812
------------
INVESTMENT INCOME-NET, representing net
increase in net assets resulting from operations........................ $ 993,987
============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1995
1994 (UNAUDITED)
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 1,512,802 $ 993,987
Net realized (loss) on investments................................... (36,398) ---
Net unrealized (depreciation) on investments for the period.......... (835) ---
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 1,475,569 993,987
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................ (1,512,802) (993,987)
------------- -------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 73,677,034 37,079,341
Dividends reinvested................................................. 1,317,328 828,699
Cost of shares redeemed.............................................. (87,777,102) (32,093,596)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.. (12,782,740) 5,814,444
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ (12,819,973) 5,814,444
NET ASSETS:
Beginning of period.................................................. 72,957,335 60,137,362
------------- -------------
End of period........................................................ $ 60,137,362 $ 65,951,806
============= =============
See independant accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MICHIGAN 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 the Fund's financial statements.
YEAR ENDED SEPTEMBER 30, SIX MONTHS ENDED
-------------------------------------------------------- MARCH 31, 1995
PER SHARE DATA: 1990(1) 1991 1992 1993 1994 (UNAUDITED)
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.0000 $1.0000 $1.0000 $ .9999 $ .9999 $ .9993
-------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS:
Investment income-net............... .0132 .0507 .0313 .0209 .0222 .0161
Net realized and unrealized gain (loss)
on investments.................... -- -- (.0001) -- (.0006) .0001
-------- -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS.. .0132 .0507 .0312 .0209 .0216 .0162
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS;
Dividends from investment income-net (.0132) (.0507) (.0313) (.0209) (.0222) (.0161)
-------- -------- -------- -------- -------- --------
Net asset value, end of period...... $1.0000 $1.0000 $ .9999 $ .9999 $ .9993 $ .9994
======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN................. 6.07%(2) 5.19% 3.17% 2.11% 2.25% 3.25%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets -- .03% .41% .58% .53% .66%(2)
Ratio of net investment income to
average net assets................ 6.21%(2) 4.87% 3.18% 2.09% 2.21% 3.23%(2)
Decrease reflected in the above expense
ratios due to undertakings by
the Manager....................... 2.78%(2) .74% .33% .20% .20% .12%(2)
Net Assets, end of period (000's Omitted) $19,929 $102,707 $83,025 $72,957 $60,137 $65,952
- ---------------------
(1) From July 13, 1990 (commencement of operations) to September 30, 1990.
(2) Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS MICHIGAN 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. Premier Mutual
Fund Services, Inc. (the "Distributor") acts as the exclusive distributor of
the Fund's shares, which are sold to the public without a sales charge. The
Distributor, located at One Exchange Place, Boston, Massachusetts 02109, is a
wholly-owned subsidiary of Institutional Administration Services, Inc., a
provider of mutual fund administration services, the parent company of which
is Boston Institutional Group, Inc. The Dreyfus Corporation ("Manager")
serves as the Fund's investment adviser. The Manager is a direct subsidiary
of Mellon Bank, N.A.
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. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00.
(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 original issue 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 applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $5,200
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1994. The
carryover does not include net realized securities losses from November 1,
1993 through September 30, 1994, which are treated, for Federal income tax
purposes, as arising in fiscal 1995. If not applied, $700 of the carryover
expires in fiscal 2000, $3,500 expires in fiscal 2001 and $1,000 expires in
fiscal 2002.
At March 31, 1995, 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).
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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, brokerage, interest on borrowings 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 October 1, 1994 through November 23, 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 November 24, 1994 through March 31, 1995 to waive
receipt of the management fee payable to it by the Fund in excess of an
annual rate of .40 of 1% of the Fund's average daily net assets. The
reduction in management fee, pursuant to the undertakings, amounted to $38,109
for the six months ended March 31, 1995.
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
Dreyfus Service Corporation 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, 1995, the Fund was charged an aggregate of $16,438 pursuant
to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000. The Chairman of the Board
receives an additional 25% of such compensation.
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS MICHIGAN MUNICIPAL MONEY MARKET FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Michigan Municipal Money Market Fund, Inc., including the statement
of investments, as of March 31, 1995, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended March 31, 1995. 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, 1994 and financial highlights for each of the five years in the
period ended September 30, 1994 and in our report dated November 1, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst and Young Signature Logo)
New York, New York
May 3, 1995
(Dreyfus Lion "D" Logo)
DREYFUS MICHIGAN MUNICIPAL
MONEY MARKET FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
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. 102SA953
(Dreyfus Logo)
Michigan Municipal
Money Market
Fund, Inc.
Semi-Annual
Report
March 31, 1995
