LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report for the Dreyfus
Massachusetts Municipal Money Market Fund. For the period ended January 31,
1995, the yield provided by your Fund was 2.66%. The effective yield was
2.70% after taking into account the effect of compounding.* Income dividends
of approximately $.027 per share paid during the period were exempt from
Federal and Commonwealth of Massachusetts 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. With
further evidence of economic strength in the latter half of the year, the
Federal Reserve Board continued its move toward tighter policy. In two
successive moves in August and November, the Fed increased rates an
additional 125 basis points. 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 with its
policy as it raised both the Federal Funds and discount rates an additional
50 basis points to 6.00% and 5.25%, respectively. Throughout the year, yields
on municipal money market funds increased in response to these higher
short-term rates.
The bankruptcy filing by Orange County, California, which occurred in the
second half of last year, was one of the most significant events to affect
the short-term municipal market. Your Fund holds only paper exempt from
Massachusetts taxes and therefore 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 Massachusetts short-term notes limited our ability to
participate. As market conditions allow, we will selectively seek out
high-quality Massachusetts issues that provide the portfolio with a high
level of diversity and liquidity.
We have provided 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
February 15, 1995
New York, N.Y.
* 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.
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<CAPTION>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS JANUARY 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS--100.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
MASSACHUSETTS--92.6%
City of Boston, Water and Sewer Commission Revenue, VRDN
3.65%, Series A (LOC; State Street Bank) (a,b).......................... $ 5,000,000 $ 5,000,000
Commonwealth of Massachusetts:
Notes 5%, Series A, 6/15/95............................................. 5,000,000 5,014,675
VRDN:
4.05%, Series B (LOC; National Westminster Bank) (a,b)................ 5,400,000 5,400,000
4.05%, Series D (LOC; ABN-Amro Bank) (a,b)............................ 8,000,000 8,000,000
Massachusetts Bay Transportation Authority, General Transportation System,
Revenue
3.75%, Series 1984 A, 3/1/95 (LOC; State Street Bank) (b)............... 5,000,000 5,000,000
Massachusetts Education Loan Authority, Education Loan Revenue, VRDN (Issue
E)
3.35%, Series A (Insured; FGIC) (a)..................................... 3,000,000 3,000,000
Massachusetts Health and Education Facilities Authority, Revenue:
(Boston University) 3.20%, Series H, 2/15/95
(Line of Credit; First National Bank of Chicago)...................... 5,000,000 5,000,000
CP (Harvard University) 3.90%, Series I, 3/10/95 (Guaranteed by; Harvard University) 6,000,000 6,000,000
VRDN:
(Brigham and Woman's Hospital) 3.25%, Series A (LOC; Sanwa Bank) (a,b) 4,000,000 4,000,000
(Capital Asset Program):
3.20%, Series G-1 (Insured; MBIA and SBPA; Credit Suisse) (a)..... 4,000,000 4,000,000
3.30%, Series D (Insured; MBIA) (a)............................... 8,000,000 8,000,000
3.35%, Series E (LOC; Sanwa Bank) (a,b)........................... 7,550,000 7,550,000
3.95%, Series B (Insured; MBIA) (a)............................... 5,900,000 5,900,000
(Williams College) 3.50%, Series E (a)................................ 5,200,000 5,200,000
Massachusetts Housing Finance Agency:
Revenue, Refunding (Insured Rental) 4.15%, Series A, 7/1/95 (Insured; AMBAC) 1,340,000 1,340,000
SFHR:
4.10%, Series 25, 6/1/95 (GIC; Bayerische Landesbank)................. 8,000,000 8,000,000
3.85%, Series 34, 6/1/95 (GIC; Barclays Bank)......................... 4,400,000 4,400,000
Massachusetts Industrial Finance Agency:
Industrial Revenue (Ocean Spray Cranberries Inc. Project) 4.30%, 10/15/95 3,500,000 3,500,000
PCR, Refunding:
CP (New England Power Co. Project) 4.25%, 2/8/95...................... 4,300,000 4,300,000
VRDN (Holyoke Water Power Co.) 3.35%, Series A
(LOC; Canadian Imperial Bank of Commerce) (a,b)................... 1,700,000 1,700,000
Revenue:
(Saint Mark's School-Southborough) 5.25%, 1/9/96 (LOC; Barclay's Bank) (b) 1,500,000 1,500,000
VRDN:
(Berkshire Project) 3.60% (LOC; National Westminster Bank) (a,b).. 3,700,000 3,700,000
(Groton School Project) 3.60% (LOC; National Westminster Bank) (a,b) 4,800,000 4,800,000
(New England Deaconess Project) 3.30%, Series B (LOC; Banque Paribas) (a,b) 5,900,000 5,900,000
Refunding (Showa Woman's Institute Inc.) 3.65% (LOC; Fuji Bank) (a,b) 5,200,000 5,200,000
RRR, VRDN (Ogden Haverhill):
Refunding 3.25%, Series A (LOC; Union Bank of Switzerland) (a,b)...... 4,600,000 4,600,000
3.30%, Series B (LOC; Union Bank of Switzerland) (a,b)................ 2,500,000 2,500,000
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
MASSACHUSETTS (CONTINUED)
City of Northampton, BAN 4%, 6/29/95........................................ $ 1,858,000 $ 1,860,538
Pioneer Valley Transportation Authority, RAN:
4%, 8/11/95............................................................. 1,000,000 1,000,756
4.10%, 8/11/95.......................................................... 1,700,000 1,702,141
4.25%, 8/11/95.......................................................... 550,000 551,108
City of Salem, BAN:
4%, 7/3/95.............................................................. 1,000,000 1,002,009
4.25%, 7/3/95........................................................... 2,000,000 2,005,624
Town of Watertown, BAN 4.30%, 10/12/95...................................... 1,141,000 1,141,751
U.S. RELATED--7.4%
Commonwealth of Puerto Rico, Government Development Bank, Refunding, VRDN
2.95% (LOC: Credit Suisse) (a,b)........................................ 10,950,000 10,950,000
------------
TOTAL INVESTMENTS (cost $148,718,602)....................................... $148,718,602
============
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<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation PCR Pollution Control Revenue
BAN Bond Anticipation Notes RAN Revenue Anticipation Notes
CP Commercial Paper RRR Resources Recovery Revenue
FGIC Financial Guaranty Insurance Company SBPA Standby Bond Purchase Agreement
GIC Guaranteed Investment Contract SFHR Single Family Housing Revenue
LOC Letter of Credit VRDN Variable Rate Demand Notes
MBIA Municipal Bond Investors Assurance
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- -------------------- ----------------------
<S> <C> <C>
VMIG1/MIG1, P1 (c) SP1+/SP1, A1+/A1 (c) 90.5%
Aaa/Aa (d) AAA/AA (d) .9
Not Rated (e) Not Rated (e) 8.6
------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENT:
(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, 1995, 50.3% of the
Fund's net assets are backed by letters of credit issued by domestic
banks and foreign banks.
(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.
See notes to financial statements.
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<CAPTION>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value_Note 1(a)........................... $148,718,602
Cash.................................................................... 1,307,328
Interest receivable..................................................... 830,391
Prepaid expenses........................................................ 42,108
--------------
150,898,429
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $13,606
Accrued expenses and other liabilities.................................. 73,350 86,956
-------- -----------
NET ASSETS ................................................................ $150,811,473
============
REPRESENTED BY:
Paid-in capital......................................................... $150,842,001
Accumulated net realized (loss) on investments.......................... (30,528)
--------------
NET ASSETS at value applicable to 150,842,001 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest
authorized)............................................................. $150,811,473
============
NET ASSET VALUE, offering and redemption price per share
($150,811,473 / 150,842,001 shares)..................................... $1.00
=====
See notes to financial statements.
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS YEAR ENDED JANUARY 31, 1995
INVESTMENT INCOME:
INTEREST INCOME......................................................... $3,500,277
EXPENSES:
Management fee_Note 2(a).............................................. $582,460
Shareholder servicing costs_Note 2(b)................................. 171,958
Auditing fees......................................................... 25,057
Registration fees..................................................... 22,880
Prospectus and shareholders' reports.................................. 13,305
Legal fees............................................................ 11,223
Custodian fees........................................................ 9,202
Trustees' fees and expenses_Note 2(c)................................. 5,878
Miscellaneous......................................................... 15,584
----------
857,547
Less_reduction in management fee due to
undertakings_Note 2(a)............................................ 531,751
----------
TOTAL EXPENSES.................................................. 325,796
------------
INVESTMENT INCOME--NET...................................................... 3,174,481
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b)............................... (30,528)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $3,143,953
============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JANUARY 31,
--------------------------------
1994 1995
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income_net................................................... $ 1,737,127 $ 3,174,481
Net realized (loss) on investments...................................... -- (30,528)
-------------- ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 1,737,127 3,143,953
-------------- ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net................................................... (1,737,127) (3,174,481)
Net realized gain on investments........................................ (2,117) --
-------------- ------------
TOTAL DIVIDENDS....................................................... (1,739,244) (3,174,481)
-------------- ------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................... 208,736,420 335,930,188
Dividends reinvested.................................................... 1,420,547 2,377,003
Cost of shares redeemed................................................. (194,673,332) (275,329,515)
-------------- ------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.......... 15,483,635 62,977,676
-------------- ------------
TOTAL INCREASE IN NET ASSETS...................................... 15,481,518 62,947,148
-------------- ------------
NET ASSETS:
Beginning of year....................................................... 72,382,807 87,864,325
-------------- ------------
End of year............................................................. $ 87,864,325 $150,811,473
============= ============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
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 year indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED JANUARY 31,
-----------------------------------------------
PER SHARE DATA: 1992(1) 1993 1994 1995
------- ------- ------- ------
<S> <C> <C> <C> <C>
Net asset value, beginning of year....................... $1.0000 $1.0002 $1.0000 $1.0000
------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net.................................... .0399 .0275 .0209 .0266
Net realized gain (loss) on investments.................. .0002 -- -- (.0002)
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS....................... .0401 .0275 .0209 .0264
------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income_net..................... (.0399) (.0275) (.0209) (.0266)
Dividends from net realized gain on investments.......... -- (.0002) -- --
------- ------- ------- -------
TOTAL DISTRIBUTIONS.................................... (.0399) (.0277) (.0209) (.0266)
------- ------- ------- -------
Net asset value, end of year............................. $1.0002 $1.0000 $1.0000 $ .9998
======= ======= ======= ========
TOTAL INVESTMENT RETURN 4.41%(2) 2.81% 2.12% 2.70%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................. -- .19% .28% .28%
Ratio of net investment income to average net assets..... 4.20%(2) 2.74% 2.09% 2.73%
Decrease reflected in above expense ratios due to
undertakings by the Manager............................ 1.04%(2) .66% .53% .46%
Net Assets, end of year (000's Omitted).................. $57,520 $72,383 $87,864 $150,811
</TABLE>
(1) From March 1, 1991 (commencement of operations) to January 31, 1992.
(2) Annualized.
See notes to financial statements.
DREYFUS MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
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, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, 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. ("the
Distributor") was engaged as the Fund's distributor. 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.
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 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, 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 $30,500
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to January 31, 1995. If not
applied, the carryover expires in fiscal 2003.
At January 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 MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (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, 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, 1994 through January
30, 1995 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 31, 1995
through March 31, 1995 or until such time as the net assets of the Fund
exceed $200 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
.15 of 1% of the value of the Fund's average daily net assets. The reduction
in management fee, pursuant to the undertakings, amounted to $531,751 for the
year ended January 31, 1995.
(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, 1995,
the Fund was charged an aggregate of $92,868 pursuant to the Shareholder
Services Plan.
(C) Prior to August 24, 1994, certain officers and trustees of the Fund
were "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
REPORT OF ERNST & YOUNG LLP, 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, 1995 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, 1995 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,
1995, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
New York, New York
March 2, 1995
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, 1995 as "exempt-interest dividends" (not subject to regular
Federal and, for individuals who are Massachusetts residents, Massachusetts
personal income taxes).
DREYFUS MASSACHUSETTS MUNICIPAL
MONEY MARKET FUND
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. 639AR951
Massachusetts
Municipal
Money Market Fund
Annual Report
January 31, 1995
