[TEXT]
<DREYFUS "D" LOGO>
DREYFUS MASSACHUSETTS MUNICIPAL
MONEY MARKET FUND
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. 639AR941
<DREYFUS LOGO>
MASSACHUSETTS
MUNICIPAL
MONEY MARKET FUND
ANNUAL REPORT
JANUARY 31, 1994
<DREYFUS "LION" LOGO>
PRESIDENT'S LETTER
Dear Shareholder:
As your Fund ended its annual reporting period on January
31, 1994, its yield was 2.09%. After taking into account the effect
of compounding, the effective yield was 2.11%.* In addition, we are
pleased to report that all dividends paid from net investment income
during this period were exempt from Federal income tax and Commonwealth
of Massachusetts income tax, although certain shareholders may be
subject to the Federal Alternative Minimum Tax on some portfolio income.
As the reporting period began, the U.S. economy continued
to exhibit signs of weakness. In addition, the rate of inflation
remained quite low which, in turn, encouraged a continuation of the
strong market in fixed-income securities. In this environment, municipal
money markets reached lows in yields not seen in many years as interest
rates declined. However, in the fourth quarter of 993, signs of
economic strength began to emerge and, with that, bond prices weakened
and yields rose as fears grew over potentially rising inflation. By
maintaining a substantial portion of the Fund's assets in variable
rate demand notes, your Fund was well positioned to take advantage
of the favorable market which developed.
The rally was revived in mid-December, however, as declines
in oil prices gave renewed confidence to the low-inflation scenarios
which dominated market thinking for the past several years. While
this rally did not achieve the high price levels experienced earlier
in the fourth quarter, it was substantial. There are many economists
who believe that the economy will return to anemic performance in
the first quarter of 1994, thereby once again relieving inflationary
pressures. Both the extreme cold recently experienced by much of
the nation and the earthquake in southern California could contribute
to slower economic growth in the first quarter of 1994.
As this letter was being prepared, the Federal Reserve
Board raised its Federal Funds rate target by a quarter percent. This
is the first time the central bank has tightened credit since 1989. Recent
statements by officials of the Federal Reserve Board have suggested
that the Fed will again "snug up" rates if economic growth continues to be
strong in the first quarter of 1994. It is widely understood that Federal
Reserve officials are intent on not giving up the gains made against inflation
over the past several years. Near term, this should bode well for short-term
securities as rates rise due to Fed actions.
The municipal market generally is in a strong position
as we enter 1994 due to the expectation of substantially reduced supply
and higher tax rates. In addition, we believe that the Federal Reserve's
vigilance in fighting inflation will benefit all fixed-income instruments
in the coming year.
We have included a current Statement of Investments and recent
financial statements for your review. We greatly appreciate your
investment in the Fund and look forward to serving your investment
needs in the future.
Very truly yours,
February 15, 1994 Richard J. Moynihan
New York, N.Y. President
* Effective yield is based upon dividends declared daily
and reinvested monthly.
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS JANUARY 31, 1994
TAX EXEMPT INVESTMENTS--100.0% Principal
Amount Value
---------- ----------
<S> <C> <C>
MASSACHUSETTS--95.4%
Commonwealth of Massachusetts, VRDN 2.15% (LOC; ABN-Amro Bank)(a,b)....... $4,000,000 $4,000,000
Massachusetts Health and Education Facilities Authority,, Revenue:
Bonds:
(Boston University) 2.45%, 2/8/94 (LOC; First Chicago Corp.) (b)......... 4,000,000 4,000,000
(Lahey Clinic) 2.80%, 7/1/94 (Insured; MBIA)............................. 1,815,000 1,817,930
VRDN:
(Capital Asset Program):
2.30%, Series B (Insured; MBIA) (a)...................................... 5,300,000 5,300,000
2.30%, Series C (Insured; MBIA and LOC; Sanwa Bank) (a,b)................ 500,000 500,000
2.35%, Series G-1 (Insured; MBIA and SBPA; Credit Suisse) (a)............ 4,000,000 4,000,000
(Harvard University):
2.05%, Series I (a)...................................................... 1,130,000 1,130,000
2.05%, Series I (a)...................................................... 4,000,000 4,000,000
(Wellesley College) 2% (a)................................................ 1,200,000 1,200,000
(Williams College) 2.15% (a).............................................. 9,300,000 9,300,000
Massachusetts Housing Finance Agency, SFHR Bonds
2.95%, Series 25, 9/1/94 (GIC; Bayerische Landesbank).................... 1,000,000 1,000,000
Massachusetts Industrial Finance Agency:
Industrial Revenue, VRD
(New England Milling Co.) 2.50% (LOC; Banco di Napoli) (a,b)............ 1,600,000 1,600,000
Mortgage Revenue, Refunding, VRDN (FSA-Chestnut House Apartments Project)
2.10% (LOC; Sumitomo Bank) (a,b)......................................... 1,335,000 1,335,000
PCR,, Refunding:
CP (New England Power Co. Project) 2.15%, 3/2/94......................... 4,300,000 4,300,000
VRDN (Holyoke Water Co.) 2% (LOC;
Canadian Imperial Bank of Commerce) (a,b)............................... 1,700,000 1,700,000
RRR,, VRDN (Ogden Haverhill) 2.55%
(LOC; Union Bank of Switzerland) (a,b).................................. 1,000,000 1,000,000
Revenue,, VRDN:, , , , , , ,
(Berkshire Project) 2.20% (LOC; National Westminster Bank) (a,b)......... 3,700,000 3,700,000
(Groton School Project) 2.20% (LOC; National Westminster Bank) (a,b)..... 2,800,000 2,800,000
(New England Deaconers) 2.45% (a)........................................ 5,000,000 5,000,000
Massachusetts Water Pollution Abatement Trust Water Pollution Abatement,
Revenue Bonds 2.75%, 8/1/94 (Guaranteed by;
Commonwealth of Massachusetts)........................................... 1,400,000 1,402,375
Merrimack Valley Regional Transportation Authority, RAN
2.80%, 10/28/94 (Guaranteed by; Commonwealth of Massachusetts)........... 4,000,000 4,006,296
Town of Montachusetts Regional Transportation Authority,, RAN
2.75%,, 7/1/94 (Guaranteed by; Commonwealth of Massachusetts)............ 2,000,000 2,002,003
Town of New Bedford, BAN 3.75%, 8/12/94
(Repurchase Agreement; Fleet Financial Group)............................. 1,800,000 1,808,824
Town of Newton, GO Notes 4%, 4/15/94...................................... 625,000 626,963
Town of Quincy, BAN 2.66%, 2/25/94........................................ 6,000,000 6,000,616
Town of Salem, GO Notes 5.20%, 7/15/94.................................... 600,000 607,374
Town of Springfield, RAN 3.30%, 2/4/94
(Repurchase Agreement;Fleet Financial Group).............................. 4,000,000 4,000,212
Town of Westfield, BAN 2.90%, 2/23/94..................................... 1,725,000 1,725,250
Worchester Regional Transportation Authority, RAN 2.75%, 6/24/94.......... 3,000,000 3,002,667
U.S. RELATED--4.6%
Commonwealth of Puerto Rico, TRAN 3%, 7/29/94............................. 4,000,000 4,005,737
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TOTAL INVESTMENTS (cost $86,871,247) $, 86,871,247
=============
</TABLE>
SUMMARY OF ABBREVIATIONS
BAN Bond Anticipation Notes, RAN Revenue Anticipation Notes
CP Commercial Paper, RRR Resources Recovery Revenue
GIC Guaranteed Investment SBPA Standby Bond Purchase Agreeement
Contract,
GO General Obligation, SFHR Single Family Housing Revenue
LOC Letter of Credit, TRAN Tax and Revenue Anticipation Notes
MBIA Municipal Bond Insurance VRDN Variable Rate Demand Notes
Association,
PCR Pollution Control Revenue
SUMMARY OF COMBINED RATINGS (UNAUDITED)
Moody's or Standard & Poor's Percentage of Value
- ------- ----------------- -------------------
VMIG1/MIG1, P1 (c) SP1+/SP1, A1+/A1 (c) 68.9%
Aaa/Aa/A (d) AAA/AA/A (d) 15.6
Not Rated (e) Not Rated (e) 15.5
------
100.0%
======
[TEXT]
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, 23.5% 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 January 31, 1994, the Fund had $27,730,000 (31.6% of net assets)
invested in securities whose payment of principal and interest is dependent
upon revenues generated from educational projects.
See notes to financial statements.
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1994
<S> <C>
ASSETS:
Investments in securities, at value--Note 1(a).......................... $ 86,871,247
Cash.................................................................... 399,148
Interest receivable..................................................... 502,474
Prepaid expenses........................................................ 18,214
Due from The Dreyfus Corporation........................................ 129,525
------------
87,920,608
LIABILITIES;
Accrued expenses and other liabilities................................. 56,283
------------
NET ASSETS.............................................................. $ 87,864,325
============
NET ASSETS at value, represented by paid-in capital, applicable to
87,864,325 shares outstanding (unlimited number of $.001 par value
shares of Beneficial Interest authorized).............................. $ 87,864,325
============
NET ASSET VALUE, offering and redemption price per share
($87,864,325<DIVIDE>87,864,325 shares)................................. $1.00
=====
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS YEAR ENDED JANUARY 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME................................................ $ 1,965,899
EXPENSES:
Management fee--Note 2(a)..................................... $ 415,835
Shareholder servicing costs--Note 2(b)........................ 161,214
Auditing fees................................................. 25,580
Prospectus and shareholders' reports.......................... 16,399
Legal fees.................................................... 14,076
Custodian fees................................................ 10,505
Registration fees............................................. 6,453
Trustees' fees and expenses--Note 2(c)........................ 5,334
Miscellaneous................................................. 14,496
---------
669,892
Less--expense reimbursement from Manager due to
undertakings--Note 2(a)...................................... 441,120
---------
TOTAL EXPENSES.............................................. 228,772
-----------
INVESTMENT INCOME--NET, representing net increase
in net assets resulting from operations......................... $ 1,737,127
===========
See notes to financial statements.
</TABLE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JANUARY 31,
-------------------------
1993 1994
----------- -----------
<S> <C> <C>
OPERATIONS:
Investment income--net.................................... $ 1,753,804 $ 1,737,127
Net realized gain on investments for the year............. 7,880 --
----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.... 1,761,684 1,737,127
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net.................................... (1,753,804) (1,737,127)
Net realized gain on investments.......................... (16,402) (2,117)
----------- -----------
TOTAL DIVIDENDS............................................ (1,770,206) (1,739,244)
----------- -----------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold............................. 84,399,988 208,736,420
Dividends reinvested...................................... 1,663,282 1,420,547
Cost of shares redeemed................................... (71,192,175) (194,673,332)
----------- -----------
INCREASE IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS..................................... 14,871,095 15,483,635
----------- -----------
TOTAL INCREASE IN NET ASSETS............................. 14,862,573 15,481,518
----------- -----------
NET ASSETS:
Beginning of year......................................... 57,520,234 72,382,807
----------- -----------
End of year............................................... $ 72,382,807 $ 87,864,325
=========== ===========
See notes to financial statements.
</TABLE>
<TABLE>
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 year indicated.
This information has been derived from information provided in the Fund's
financial statements.
Year Ended January 31,
-----------------------------
PER SHARE DATA: 1992(1) 1993 1994
------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of year.................. $1.0000 $1.0002 $1.0000
------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net.............................. .0399 .0275 .0209
Net realized gain on investments.................... .0002 -- --
------- ------- -------
TOTAL fROM INVESTMENT OPERATIONS.................. .0401 .0275 .0209
------- ------- -------
DISTRIBUTIONS:
Dividends from investment income--net............... (.0399) (.0275) (.0209)
Dividends from net realized gain on investments..... -- (.0002) --
------- ------- -------
TOTAL DISTRIBUTIONS............................... (.0399) (.0277) (.0209)
Net asset value, end of year........................ $1.0002 $1.0000 $1.0000
======= ======= =======
TOTAL INVESTMENT RETURN 4.41%(2) 2.81% 2.12%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. -- .19% .28%
Ratio of net investment income to average net assets. 4.20%(2) 2.74% 2.09%
Decrease reflected in above expense ratios due to
undertakings by the Manager......................... 1.04%(2) .66% .53%
Net Assets, end of year (000's Omitted)..............$57,520 $72,383 $87,864
_________________
(1) From March 1, 1991 (commencement of operations)to January 31, 1992.
(2) Annualized.
</TABLE>
See notes to financial statements.
[TEXT]
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
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, when appropriate,
discounts on investments, is earned from settlement date and recognized
on the accrual basis. Realized gain and loss from se urities transactions
re recorded on the identifie@ 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 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 through January 18, 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 January 19, 1994 through March
31, 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 in excess
of an annual rate of .05 of 1% of the Fund's average daily net assets. In
addition, the Manager may voluntarily assume all or part of the other
expenses of the Fund, provided that the resulting expense reimbursement
would not be less than the amount required pursuant to the Agreement.
The expense reimbursement, pursuant to the undertakings and the voluntary
assumption of other expenses, amounted to $441,120 for the year ended
January 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 year ended January 31, 1994,
the Fund was charged an aggregate of $81,499 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 the Distributor. Each trustee 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 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.
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus Massachusetts Municipal Money Market Fund, 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 Massachusetts Municipal Money Market Fund 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.
<SIGNATURE LOGO>
ERNST & YOUNG
New York, New York
March 4, 1994
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 Massachusetts residents, Massachusetts
personal income taxes).
