LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this semi-annual report for the
Dreyfus Massachusetts Municipal Money Market Fund. For the six-month period
ended July 31, 1994, the annualized yield provided by your Fund was 2.25%.
The annualized effective yield was 2.27% after taking into account the effect
of compounding.* Income dividends of approximately $.01 per share paid during
the period were exempt from Federal and Commonwealth of Massachusetts
personal income taxes.**
Over the past few months, we have been 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 reporting
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 despite the
unprecedented low yield environment.
In the first half of 1994, however, signs of economic strength began to
emerge along with the specter of a tighter Federal Reserve Board policy.
Through a series of tightening moves between February 4 and May 17, the Fed
signaled its desire to choke off inflationary pressures before they had an
opportunity to build significantly. In a step-by-step process which began in
February, the Fed inched up the Federal Funds rate by 175 basis points to the
4 3/4% level. The bond market responded with an uneasy 100 basis point rise
in rates, with short-term rates moving upward by 50 basis points. The most
overt move came on May 17 when the Fed raised both the discount rate and the
Federal Funds rate by 50 basis points, to 3.50% and 4.25%, respectively:
those moves were followed by another 50 basis point increase earlier this
month. The moves appeared to achieve a neutral monetary policy, clearly
signaling the end of the Federal Reserve's 1993 accommodative stance.
With these earlier changes in the Federal Reserve's monetary stance, the
unease in other markets served to bolster rates in the short-term municipal
market as cash moved into municipal money markets from both equities and bond
funds. Short-term municipal rates increased, but to a lesser degree than
their taxable counterparts. Total net assets of tax exempt money market funds
reached an all-time high of over $119 billion. During the past six-month
period, assets of Dreyfus Massachusetts Municipal Money Market Fund increased
over 30%. Traditionally, some municipal money markets lose assets during late
April as investors tap their money funds to pay income taxes. While your Fund
did not experience these outflows, it did benefit from the temporary weakness
in the short-term market that resulted. In response to a decreased demand by
funds for short-term tax exempt paper, yields on securities rose
significantly, providing attractive returns relative to taxable alternatives.
Your Fund's yield has remained attractive to the investor seeking tax exempt
income, and the hike in tax rates which took place last year has made these
returns even more attractive on an after-tax basis.
In recent weeks, many issuers returned to the marketplace with their
traditional summer financings. While only a small portion of the securities
issued were Massachusetts-exempt, the increased supply of available
investment alternatives to the short-term market once again placed upward
pressure on yields as supply outstripped demand. When we could, we extended
the average maturity of your portfolio to lock in the attractive yields
prevailing in the short-term market at that time. We will continue to adjust
our strategy, when necessary, to respond to changes in the market, in Federal
Reserve policy, and to the proposed changes in the regulations governing tax
exempt money market funds which we have received from the Securities and
Exchange Commission. It is our goal to take advantage of any market shifts to
help your Fund continue to provide one of the best returns available among
Massachusetts tax exempt money market funds.
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,
(logo signature)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
August 26, 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.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS JULY 31, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS_100.0% AMOUNT VALUE
--------------- ---------------
<S> <C> <C>
MASSACHUSETTS_96.4%
Commonwealth of Massachusetts:
Special Obligation Revenue 4.50%, Series A, 6/1/95...................... $ 3,000,000 $ 3,026,712
VRDN:
2.80%, Series B (LOC; ABN-Amro Bank) (a,b)............................ 3,000,000 3,000,000
2.80%, Series D (LOC; ABN-Amro Bank) (a,b)............................ 4,000,000 4,000,000
2.80%, Series E (LOC; ABN-Amro Bank) (a,b)............................ 1,600,000 1,600,000
Massachusetts Bay Transportation Authority, General Transportation System:
Notes:
3.25%, Series B, 9/30/94.............................................. 1,000,000 1,001,412
3.75%, Series A, 3/1/95............................................... 5,000,000 5,016,873
Revenue 2.69%, Series 1984 A, 9/1/94 (LOC; State Street Bank) (b)....... 5,000,000 5,000,000
Massachusetts Health and Education Facilities Authority, Revenue:
(Boston University) 2.90%, Series H, 8/25/94 (LOC; First National Bank of
Chicago)(b)................................................................. 4,000,000 4,000,000
VRDN:
(Capital Asset Program):
2.55%, Series G-1 (Insured; MBIA and SBPA; Credit Suisse) (a)..... 4,000,000 4,000,000
2.60%, Series B (Insured; MBIA) (a)............................... 5,900,000 5,900,000
3.05%, Series E (LOC; Sanwa Bank) (a,b)........................... 5,300,000 5,300,000
(Harvard University) 2.75%, Series I (Guaranteed by; Harvard University) (a) 3,100,000 3,100,000
(Wellesly College) 2.40%, Series B (a)................................ 1,200,000 1,200,000
(Williams College) 2.85%, Series E (a)................................ 4,300,000 4,300,000
Massachusetts Housing Finance Agency, SFHR:
2.95%, Series 25, 9/1/94 (GIC; Bayerische Landesbank)................... 1,000,000 1,000,000
3.05%, Series 33, 12/1/94 (Insured; FGIC)............................... 4,000,000 4,000,000
3.20%, Series 32, 12/1/94 (Insured; FGIC)............................... 1,500,000 1,500,000
3.85%, Series 34, 6/1/95 (GIC; Barclays Bank)........................... 4,400,000 4,400,000
Massachusetts Industrial Finance Agency:
Mortgage Revenue, Refunding, VRDN (Chestnut House Apartments)
2.50% (LOC; Sumitomo Bank) (a,b)...................................... 1,325,000 1,325,000
PCR, Refunding:
CP (New England Power Co. Project) 3.20%, 8/11/94..................... 4,300,000 4,300,000
VRDN (Holyoke Water Power Co.) 2.70%, Series A
(LOC; Canadian Imperial Bank of Commerce) (a,b)................... 1,700,000 1,700,000
Revenue, VRDN:
(Berkshire Project) 2.80% (LOC; National Westminster Bank) (a,b)...... 3,700,000 3,700,000
(Groton School Project) 2.80% (LOC; National Westminster Bank) (a,b).. 4,800,000 4,800,000
(New England Deaconess Project) 2.60%, Series B (LOC; Banque Paribas) (a,b) 5,000,000 5,000,000
Refunding (Showa Woman's Institute Inc.) 2.75% (LOC; Fuji Bank) (a,b). 4,000,000 4,000,000
RRR, VRDN (Ogden Haverhill) 2.60%, Series B (LOC; Union Bank of Switzerland) (a,b) 1,000,000 1,000,000
Massachusetts Water Pollution Abatement Trust, Water Pollution Abatement
Revenue 2.75%, 8/1/94 (Guaranteed by; Commonwealth of Massachusetts).... 1,400,000 1,400,000
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
--------------- ---------------
Merrimack Valley Regional Transportation Authority, RAN
2.80%, 10/28/94 (Guaranteed by; Commonwealth of Massachusetts).......... $ 4,000,000 $ 4,002,060
Town of New Bedford, BAN
3.75%, 8/12/94 (Repurchase Agreement; Fleet Financial Group)............ 1,800,000 1,800,506
City of Northampton, BAN 4%, 6/29/95........................................ 1,858,000 1,863,694
City of Salem, BAN:
4%, 7/3/95.............................................................. 1,000,000 1,004,440
4.25%, 7/3/95........................................................... 2,000,000 2,012,433
South Essex Sewer District, BAN 4%, 12/1/94................................. 4,680,000 4,691,488
Town of Worchester, BAN 3.46%, 8/24/94...................................... 1,800,000 1,800,117
U.S. RELATED_3.6%
Commonwealth of Puerto Rico, Government Development Bank, Refunding, VRDN
2.55% (LOC: Credit Suisse and Sumitomo Bank) (a,b)...................... 4,000,000 4,000,000
---------
TOTAL INVESTMENTS (cost $109,744,735)....................................... $109,744,735
============
</TABLE>
<TABLE>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
BAN Bond Anticipation Notes PCR Pollution Control Revenue
CP Commercial Paper RAN Revenue Anticipation Notes
FGIC Financial Guaranty Insurance Corporation RRR Resources Recovery Revenue
GIC Guaranteed Investment Contract SBPA Standby Bond Purchase Agreement
LOC Letter of Credit SFHR Single Family Housing Revenue
MBIA Municipal Bond Insurance Association VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS
MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ------------- ------------------------- ---------------------
<S> <C> <C>
VMIG1/MIG1, P1 (c) SP1+/SP1, A1+/A1 (c) 83.1%
Aaa/Aa/A (d) AAA/AA/A (d) 1.3
Not Rated (e) Not Rated (e) 15.6
------
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 July 31, 1994, 42% 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 Trustees to be
of comparable quality to those rated securities in which the Fund may
invest.
(f) At July 31, 1994, the Fund had $31,000,000 (26.9% of net assets)
invested in securities whose payment of principal and interest is
dependent upon revenues generated from educational projects.
See independent accountants' review report and notes to financial statements.
<TABLE>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value_Note 1(a)............................................. $109,744,735
Cash...................................................................................... 4,952,848
Interest receivable....................................................................... 625,612
Prepaid expenses.......................................................................... 11,696
Due from The Dreyfus Corporation.......................................................... 122,010
-----------
115,456,901
LIABILITIES;
Accrued expenses and other liabilities.................................................... 50,602
-----------
NET ASSETS .................................................................................. $115,406,299
============
REPRESENTED BY:
Paid-in capital........................................................................... $115,407,057
Accumulated net realized (loss) on investments............................................ (758)
-----------
NET ASSETS at value applicable to 115,407,057 outstanding shares of
Beneficial Interest, equivalent to $1.00 per share
(unlimited number of $.001 par value shares authorized)................................... $115,406,299
============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS SIX MONTHS YEAR ENDED JULY 31, 1994(UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 1,269,023
EXPENSES:
Management fee_Note 2(a)............................................. $253,678
Shareholder servicing costs_Note 2(b)................................. 64,020
Auditing fees......................................................... 10,757
Registration fees..................................................... 10,318
Prospectus and shareholders' reports.................................. 6,793
Legal fees............................................................ 6,369
Custodian fees........................................................ 3,955
Trustees' fees and expenses_Note 2(c)................................. 2,634
Miscellaneous......................................................... 7,854
--------
366,378
Less_reduction in management fee due to
undertakings_Note 2(a)............................................ 246,163
--------
TOTAL EXPENSES.................................................. 120,215
----------
INVESTMENT INCOME_NET...................................................... 1,148,808
NET REALIZED (LOSS) ON INVESTMENTS_Note 1(b)............................... (758)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 1,148,050
===========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JANUARY 31, JULY 31, 1994
1994 (UNAUDITED)
----------- ------------------
<S> <C> <C>
OPERATIONS:
Investment income_net................................................. $ 1,737,127 $ 1,148,808
Net realized (loss) on investments for the period...................... -- (758)
------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. 1,737,127 1,148,050
------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net................................................. (1,737,127) (1,148,808)
Net realized gain on investments....................................... (2,117) --
------------- --------------
TOTAL DIVIDENDS...................................................... (1,739,244) (1,148,808)
------------- --------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold.......................................... 208,736,420 164,918,417
Dividends reinvested................................................... 1,420,547 834,333
Cost of shares redeemed................................................ (194,673,332) (138,210,018)
------------- --------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS......... 15,483,635 27,542,732
------------- --------------
TOTAL INCREASE IN NET ASSETS..................................... 15,481,518 27,541,974
NET ASSETS:
Beginning of period.................................................... 72,382,807 87,864,325
------------- --------------
End of period.......................................................... $ 87,864,325 $115,406,299
============= ==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated.This
information has been derived from the Fund's financial statements.
YEAR ENDED JANUARY 31, SIX MONTHS ENDED
JULY 31, 1994
PER SHARE DATA: 1992(1) 1993 1994 (UNAUDITED)
-------- ------- -------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period...................... $1.0000 $1.0002 $1.0000 $1.0000
------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net.................................... .0399 .0275 .0209 .0111
Net realized gain (loss) on investments................... .0002 -- -- --
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........................ .0401 .0275 .0209 .0111
------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income_net..................... (.0399) (.0275) (.0209) (.0111)
Dividends from net realized gain on investments........... -- (.0002) -- --
------- ------- ------- -------
TOTAL DISTRIBUTIONS..................................... (.0399) (.0277) (.0209) (.0111)
------- ------- ------- -------
Net asset value, end of period............................ $1.0002 $1.0000 $1.0000 $1.0000
======= ======= ======= =======
TOTAL INVESTMENT RETURN 4.41%(2) 2.81% 2.12% 2.26%(2)
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................... -- .19% .28% .24%(2)
Ratio of net investment income to average net assets...... 4.20%(2) 2.74% 2.09% 2.26%(2)
Decrease reflected in above expense ratios due to
undertakings by the Manager............................. 1.04%(2) .66% .53% .49%(2)
Net Assets, end of period (000's Omitted)................. $57,520 $72,383 $87,864 $115,406
(1) From March 1, 1991 (commencement of operations) to January 31, 1992.
(2) Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
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 acted as the distributor of the Fund's shares until August 23,
1994, which are sold to the public without a sales charge. Dreyfus Service
Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank N.A.
On August 24, 1994, Premier Mutual Fund Services Inc. ("Premier") was
engaged as the Fund's distributor. Premier, 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.
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 Trustees to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. 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, 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 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 taxes.
At July 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.
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
However, the Manager had undertaken from February 1, 1994 through April
10, 1994 to waive receipt of the management fee payable to it 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 April 11, 1994
through September 30, 1994 or until such time as the net assets of the Fund
exceed $125 million, regardless of whether they remain at that level, to
waive receipt of the management fee payable to it by the Fund. The reduction
in management fee, pursuant to the undertakings, amounted to $246,163 for the
six months ended July 31, 1994.
(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 July 31, 1994, the Fund was charged an aggregate of $26,585 pursuant to
the Shareholder Services Plan.
(C) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or Dreyfus Service Corporation.
Each trustee who is not an "affiliated person" receives an annual fee of
$1,000.
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Massachusetts Municipal Money Market Fund, including the statement of
investments, as of July 31, 1994, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended July 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
January 31, 1994 and financial highlights for each of the three years in the
period ended January 31, 1994 and in our report dated March 4, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(logo signature)
New York, New York
September 2, 1994
Massachusetts
Municipal
MoneyMarket Fund
Semi-Annual
Report
July 31, 1994
DREYFUS MASSACHUSETTS MUNICIPAL
MONEY MARKET FUND
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
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. 639SA947
Registration Mark
