PRESIDENT'S LETTER
Dear Shareholder:
We are pleased to provide you with this semi-annual report for Dreyfus
BASIC Municipal Money Market Fund. For the six-month period ended
February 28, 1994, the annualized yield provided by your Fund was 2.46%.
After taking into account the effect of compounding, the annualized
effective yield was 2.48%.* Dividends of approximately $.01 per share
paid during the period were exempt from Federal income tax.**
At our last reporting, we were keeping a watchful eye on the status of
the U.S. economy, the direction of interest rates and any significant
variation in inflationary indicators. Early in the period, economic numbers
hinted that the nation's growth might be more anemic than anticipated.
With no strong threat of a rekindling of inflation, the municipal market
responded with strength, providing some of the lowest historic yields on
record. Despite the unprecedented low yield environment, assets of
municipal money market funds increased, at one point reaching over $112
billion - an all-time high!
In the first quarter of 1994, however, signs of economic strength began
to emerge, along with the specter of a tighter Federal Reserve Board
policy. In fact, on February 4, through a direct announcement by Chairman
Alan Greenspan, the Fed "snugged up" the Federal Funds rate target a
quarter of a percentage point to 3-1/4%. The market reaction was a
corresponding increase in rates, which was exacerbated in some degree by
the anticipation of a new supply in the marketplace _ including $3.2 billion
State of California Revenue Anticipation Warrants in mid-February. With a
significant portion of your Fund invested in variable rate demand notes
(which quickly reflect current market conditions through both daily and
weekly repricing mechanisms), your Fund continued to provide one of the
highest 7-day yields in the universe of retail tax exempt money market
funds. Of course, the hike in tax rates which took place last year makes
these returns even more attractive on an after-tax basis.
Our strategy in the coming weeks will be to choose carefully along the
one-year yield curve as attractive opportunities appear. In selectively
investing in the municipal note market, we will continue to seek out high
quality issues, while providing the portfolio with a high level of diversity
and liquidity.
We have included a current Statement of Investments and recent
financial statements for your review. We look forward to serving your
investment needs in the future.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
President
March 7, 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.
Source: IBC/Donoghue's Money Fund Report, 7-day yields for this 6-
month reporting period. Rankings reflect the absorption of certain Fund
expenses which may be terminated. Without such absorption, the Fund's
rankings may have been lower. Yield fluctuates and past performance is no
guarantee of future results.
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS-100.0% AMOUNT VALUE
------------ ------------
<S> <C> <C>
ALABAMA-3.1%
Alabama Industrial Development Authority, SWDR, VRDN (Pine City Fiber Co. Project)
2.60% (LOC; Barclays Bank) (a,b)................................................... $ 20,000,000 $ 20,000,000
City of Phenix Industrial Development Board, EIR, VRDN (Mead Coated Board Project)
2.30%, Series A (LOC; Sumitomo Bank) (a,b)......................................... 6,400,000 6,400,000
ARIZONA-2.2%
City of Phoenix, VRDN 2.60%, Series I (SBPA; Morgan Bank) (a).......................... 18,900,000 18,900,000
CALIFORNIA-4.6%
State of California, RAN 3.50%, 6/28/94................................................ 1,000,000 1,001,585
California Higher Education Loan Authority Inc., Student Loan Revenue:
Bonds 2.90%, Series A, 6/1/94 (LOC; Industrial Bank of Japan) (b).................. 8,745,000 8,745,000
Notes 2.85%, Series A, 3/1/94 (LOC; Industrial Bank of Japan) (b).................. 4,000,000 4,000,000
California Pollution Control Financing Authority, RRR, VRDN (Delano Project)
2.30%, Series 1991 (LOC; ABN-Amro Bank) (a,b)...................................... 6,600,000 6,600,000
California School Cash Reserve Program Authority, Bonds
3.40%, Series A, 7/5/94............................................................ 14,000,000 14,023,440
Los Angeles County, TRAN 3%, 6/30/94................................................... 5,000,000 5,001,471
COLORADO-.6%
Denver Urban Renewal Authority, Tax Increment Revenue (Downtown Denver Renewal)
2.90%, Series A, 3/17/94 (Collateralized; U.S. Treasury Bills)..................... 4,940,000 4,940,000
CONNECTICUT-2.1%
Connecticut Special Assessment Unemployment Compensation Advanced Fund, Revenue
(Connecticut Unemployment) 3%, Series C, 7/1/94 (Insured; FGIC).................... 18,000,000 18,011,644
DELAWARE-.6%
Delaware Health Facilities Authority, Revenue, Pooled Loan Program, VRDN
2.40% (BPA; Morgan Guaranty Trust, Insured; MBIA) (a).............................. 5,400,000 5,400,000
DISTRICT OF COLUMBIA-2.5%
District of Columbia, VRDN:
(General Fund Recovery):
2.25%, Series B-2 (LOC; Sumitomo Bank) (a,b)................................... 12,500,000 12,500,000
2.25%, Series B-3 (LOC; Industrial Bank of Japan) (a,b)........................ 3,000,000 3,000,000
Refunding 2.40%, Series A-5 (LOC; Mitsubishi Bank) (a,b)........................... 5,800,000 5,800,000
FLORIDA-1.2%
Orange County School District, RAN 2.75%, 3/8/94....................................... 10,000,000 10,000,466
GEORGIA-.9%
Georgia Hospital Financing Authority, Revenue, VRDN (Georgia Pooled Hospital
Loan Program) 2.30% (LOC; First Union National Bank) (a,b)......................... 7,600,000 7,600,000
ILLINOIS-2.6%
City of Chicago, GO Tender Notes 2.75%, Series 93B, 4/5/94
(LOC: Dai-Ichi Kangyo Bank, Industrial Bank of Japan, Mitsubishi Bank, Sanwa Bank and
Sumitomo Bank) (b)................................................................. 10,000,000 10,000,000
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
------------ ------------
ILLINOIS (CONTINUED)
State of Illinois, GO Notes 3.50%, 6/15/94............................................. $ 8,000,000 $ 8,013,596
Southwestern Development Authority, SWDR, VRDN
(Shell Oil Co. Wood River Project) 2.45% (Corp. Guaranty; Shell Oil Co.) (a)....... 3,800,000 3,800,000
INDIANA-2.6%
Indiana Bond Bank, Advance Funding Program, Tax Exempt Notes
3.03%, Series A-2, 1/17/95......................................................... 15,000,000 15,035,960
Indiana Secondary Market Educational Loans Inc., Education Loan Revenue, VRDN
2.55%, Series F (Insured; AMBAC, LOC; Student Loan Marketing Association) (a,b).... 7,000,000 7,000,000
KENTUCKY-2.9%
City of Danville, Multi-City Lease Revenue, CP (Kentucky Municipal League
Pooled Program) 2.60%, 4/7/94 (LOC: HongKong Shanghai Banking Corp., and
Marine Midland Bank) (a,b)......................................................... 2,770,000 2,770,000
Daviss County, Solid Waste Disposal Facilities Revenue, VRDN (Scott Paper Co. Project)
2.45%, Series A (LOC; Morgan Guaranty Trust) (a,b)................................. 3,000,000 13,000,000
Morgantown, IDR (Sumitomo Electric Wire System) 2.90%, 4/1/94 (LOC; Sumitomo Bank) (b). 8,600,000 8,600,000
LOUISIANA-4.2%
Louisiana Public Facilities Authority, School Board Advance Funding
3.25%, Series A, 8/12/94 (GIC; American Insurance Group)........................... 10,500,000 10,526,124
Louisiana Housing Finance Agency, Single Family Revenue
2.92%, Series B, 6/2/94 (Escrow; U.S. Treasury Bills).............................. 6,000,000 6,000,000
Saint Charles Parish, PCR, VRDN:
(Shell Oil Co. Project):
2.45%, Series A (a)............................................................ 6,000,000 6,000,000
Refunding 2.30%, Series B (Corp. Guaranty; Shell Oil Co.) (a).................. 4,500,000 4,500,000
(Shell Oil Co. Norco Project)
2.45% (Corp. Guaranty; Shell Oil Co.) (a)...................................... 8,500,000 8,500,000
MARYLAND-3.6%
Frederick, Improvement Bonds, VRDN 2.65% (LOC; Fuji Bank) (a,b)........................ 2,800,000 2,800,000
Maryland Energy Financing Administration, LOR, VRDN (Baltimore Ferst Project)
2.30% (LOC; Credit Suisse) (a,b)................................................... 19,400,000 19,400,000
Montgomery County Housing Opportunities Commission, MFMR, 2.65%, Series C, 12/1/94..... 8,310,000 8,310,000
MASSACHUSETTS-1.5%
Massachusetts Bay Transportation Authority, Tax Exempt Notes 3.75%, Series A, 3/1/95... 10,000,000 10,058,100
Massachusetts Health and Educational Facilities Authority, Revenue, VRDN
(Capital Asset Program) 2.15%, Series C (BPA; Sanwa Bank, Insured; MBIA) (a) ...... 2,900,000 2,900,000
MICHIGAN-5.2%
Grand Rapids Economic Development Corp., Revenue, VRDN
(Amway/Grand Plaza Hotel Facility #1) 2.45% (LOC; Old Kent Bank and Trust) (a,b)... 4,000,000 4,000,000
Michigan Higher Education Student Loan Authority, Revenue, VRDN 2.40%, Series XII-F
(Insured; AMBAC, Liquidity Agreement; Sumitomo Bank) (a)........................... 5,000,000 5,000,000
Michigan Housing Development Authority, LOR, Refunding, VRDN
(Harbortown Limited Divide) 2.625% (LOC; Bankers Trust) (a,b)...................... 10,000,000 10,000,000
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
------------ ------------
MICHIGAN (CONTINUED)
Michigan Strategic Fund, VRDN:
PCR, Refunding
(Consumer Power Project) 2.35%, Series A (LOC; Union Bank of Switzerland) (a,b) $ 10,300,000 $ 10,300,000
SWDR
(Genesee Power Station Project) 2.35% (LOC; Canadian Imperial Bank of
Commerce) (a,b)............................................................ 10,000,000 10,000,000
Monroe County Economic Development Corp., LOR, Refunding, VRDN (Detroit Edison)
2.20%, Series CC (LOC; Barclays Bank) (a,b)........................................ 4,500,000 4,500,000
MINNESOTA-3.0%
Becker, Tax Increment Revenue 3%, 10/1/94.............................................. 10,000,000 10,000,000
Cloquet, PCR, VRDN (Potlatch Corp. Project) 2.45% (LOC; Credit Suisse) (a,b)........... 3,000,000 3,000,000
Minnesota Housing Financing Agency, SFMR 2.60%, 1/12/95 (GIC; Societe Generale)........ 12,865,000 12,865,000
MISSISSIPPI-.3%
Jackson County, Port Facility Revenue, Refunding, VRDN (Chevron USA Inc. Project)
2.30% (Corp. Guaranty; Chevron USA Inc.) (a)....................................... 2,700,000 2,700,000
MONTANA-1.8%
Forsyth, PCR, VRDN (Portland General Electric Co.)
2.50% (LOC; Banque Nationale De Paris) (a,b)....................................... 10,000,000 10,000,000
Montana Board of Investment, RRR, VRDN (Colstrip Project) 2.90% (LOC; Fuji Bank) (a,b). 5,600,000 5,600,000
NEW HAMPSHIRE-1.8%
New Hampshire Housing Finance Authority, Single Family Residential Bonds:
2.35%, Series D, 3/1/94 (GIC; Cargill Inc.)........................................ 7,500,000 7,500,000
2.80%, Series C, 6/30/94 (GIC; Cargill Inc.)....................................... 7,550,000 7,550,000
NEW JERSEY-5.9%
State of New Jersey, TRAN 3%, 6/15/94.................................................. 50,000,000 50,113,235
NEW MEXICO-1.8%
Farmington, PCR, VRDN (Arizona Public Service Project-Four Corners)
2.40% (LOC; Barclays Bank) (a,b)................................................... 5,500,000 5,500,000
New Mexico Educational Assistance Foundation, Student Loan Revenue, VRDN
2.45%, Series B (Insured; AMBAC, SBPA; International Bank of Nederland) (a)........ 10,000,000 10,000,000
NEW YORK-4.5%
Erie County, RAN 3.30%, 8/5/94 (LOC; Mitsubishi Bank) (b).............................. 5,000,000 5,004,151
New York City, RAN 3.50%, Series B, 6/30/94............................................ 9,000,000 9,018,265
New York City Municipal Water Financing Authority, Water and Sewer System Revenue, VRDN
2.20%, Series C (Insured; FGIC) (a)................................................ 8,400,000 8,400,000
Port Authority of New York and New Jersey, Special Obligation Revenue,
Versatile Structure Obligation, VRDN 2.25%, Series 1
(Liquidity Facility: Industrial Bank of Japan, Sanwa Bank and Sumitomo Bank) (a)... 5,400,000 5,400,000
Vista Community Development Commission, BAN, Refunding 3.375%, 11/1/94
(LOC; Sumitomo Bank) (b)........................................................... 10,000,000 10,000,000
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
------------ ------------
NORTH CAROLINA-4.5%
Craven County Industrial Facilities and Pollution Control Financing Authority,
Resource, VRDN (Craven Wood Energy):
2.30%, Series A (LOC; Mitsubishi Bank) (a,b)................................... $ 8,600,000 $ 8,600,000
2.30%, Series B (LOC; ABN-Amro Bank) (a,b)..................................... 6,400,000 6,400,000
2.30%, Series C (LOC; Mitsubishi Bank) (a,b)................................... 5,900,000 5,900,000
Halifax County Industrial Facilities and Pollution Control Financing Authority,
Exempt Facilities Revenue, VRDN (Westmoreland Hadson Project)
2.20% (LOC; Credit Suisse) (a,b)................................................... 9,900,000 9,900,000
North Carolina Municipal Power Agency # 1, CP, Catawba Electric Revenue
2.25%, 3/10/94 (LOC; Industrial Bank of Japan) (b)................................. 7,500,000 7,500,000
OHIO-5.1%
Cleveland, Public Power Systems Revenue, BAN 3.50%, Series B, 8/1/94................... 11,500,000 11,519,662
Ohio Housing Finance Authority, SFMR 2.95%, Series A-2, 6/1/94
(GIC; Goldman, Sachs and Co.)...................................................... 8,000,000 8,000,000
Student Loan Funding Corp., Student Loan Revenue:
2.90%, Series 87A, 7/1/94 (LOC; Fuji Bank) (b)..................................... 10,000,000 10,000,000
VRDN 2.35%, Series A-3 (LOC; National Westminster Bank) (a,b)...................... 3,400,000 3,400,000
Summit County, BAN 2.65%, 3/10/94...................................................... 6,000,000 6,000,109
University of Cincinnati, General Receipts, BAN 2.81%, Series K-1, 3/23/94............. 4,100,000 4,100,626
OKLAHOMA-1.3%
Tulsa Industrial Authority, HR, VRDN (Hillcrest Medical Center Project)
2.50% (LOC; Sumitomo Bank) (a,b)................................................... 11,000,000 11,000,000
OREGON-.2%
State of Oregon, EDR, VRDN (Toyo Tanso USA) 3%, Series CXLVII (LOC; Bank of Tokyo) (a,b) 2,000,000 2,000,000
PENNSYLVANIA-6.1%
Cambria County Hospital Revenue Authority, HR (Mercy Hospital Johnstown Project)
2.50%, 3/1/94 (LOC; Bank of Tokyo) (b)............................................. 4,895,000 4,895,000
Carbon County Industrial Development Authority, RRR, CP
(Panther Creek) 2.35%, Series A, 3/8/94 (LOC; National Westminster Bank) (b)....... 3,825,000 3,825,000
Emmaus General Authority, Local Government Revenue, VRDN
2.45% (LOC; HongKong Shanghai Banking Corp.) (a,b)................................. 13,000,000 13,000,000
Erie County Industrial Development Authority, IDR, VRDN (McInnes Steel Co. Project)
2.30% (LOC; Marine Midland Bank) (a,b)............................................. 1,700,000 1,700,000
City of Philadelphia, Gas Works Revenue, CP 2.40%, Series A, 4/8/94
(LOC; Fuji Bank) (b)............................................................... 12,800,000 12,800,000
Schuykill County Industrial Development Authority, RRR, VRDN
(Northeastern Power Co. Project) 2.50%, Series B (LOC; Sumitomo Bank) (a,b)........ 5,100,000 15,100,000
SOUTH CAROLINA-1.5%
South Carolina Job Economic Development Authority, EDR, VRDN:
(Saint Francis Hospital) 2.30% (LOC; Chemical Bank) (a,b).......................... 8,000,000 8,000,000
(Wellman Inc. Project) 2.30% (LOC; Wachovia Bank and Trust Co.) (a,b).............. 5,000,000 5,000,000
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
------------ ------------
TENNESSEE-2.5%
City of Memphis, VRDN 2.65%, Series B (LOC; Sanwa Bank) (a,b).......................... $ 1,000,000 $ 1,000,000
Metropolitan Government Nashville and Davidson County Health and Education
Facilities Board, Revenue (Vanderbilt University) 2.60%, Series A, 1/15/95......... 20,250,000 20,250,000
TEXAS-9.5%
Brazos River Harbor Navigation District, Harbor Revenue, VRDN
(Dow Chemical Co. Project) 2.55% (Corp. Guaranty; Dow Chemical Co.) (a)............ 8,200,000 8,200,000
El Paso Health Facilities Development Corp., Revenue, VRDN
(Providence Memorial Hospital) 2.30% (LOC; Fuji Bank) (a,b)........................ 11,800,000 11,800,000
El Paso Industrial Development Authority Inc., IDR, VRDN
(El Paso School District Limited Project) 2.90% (LOC; Chemical Bank) (a,b)......... 4,800,000 4,800,000
Greater East Texas Higher Education Authority Inc., Student Loan Revenue (Senior Lien)
2.75%, Series A, 5/1/94 (LOC; Student Loan Marketing Association) (b).............. 4,200,000 4,200,000
Gulf Coast Waste Disposal Authority, PCR, VRDN (Amoco Oil Co. Project)
2.45% (Corp. Guaranty; Amoco Credit Corp.) (a)..................................... 17,000,000 17,000,000
Harris County Health Facilities Development Corp., HR, VRDN:
(Saint Lukes Episcopal Hospital) 2.30%, Series A
(Liquidity Facility; Saint Lukes Hospital) (a)................................. 4,500,000 4,500,000
(TIRR Project) 2.30% (LOC; Texas Commerce Bank) (a,b).............................. 10,200,000 10,200,000
North Texas Higher Education Authority Inc., Student Loan Revenue, Refunding, VRDN
2.55%, Series A (LOC; Student Loan Marketing Association) (a,b).................... 10,500,000 10,500,000
Panhandle Plains Higher Education Authority Inc., Student Loan Revenue
2.65%, Series A, 4/1/94 (LOC; Student Loan Marketing Association) (b).............. 7,000,000 7,000,000
Port Development Corp., IDR, VRDN (Pasadena Terminals Project)
2.75% (LOC; ABN Amro Bank) (a,b)................................................... 2,420,000 2,420,000
UTAH-1.6%
Carbon County, SWDR, Refunding (East Carbon Landfill Project)
3.05%, 5/1/94 (GIC; Bayerische Landesbank) (a)..................................... 8,330,000 8,330,000
Utah Board of Regents, Student Loan Revenue, Refunding, VRDN 2.55%, Series A
(LOC; Student Loan Marketing Association) (a,b).................................... 5,000,000 5,000,000
VIRGINIA-5.8%
Campbell County Industrial Development Authority, Exempt Facility Revenue, VRDN
(Hadson Power Project) 2.30%, Series 12-A (LOC; Barclays Bank) (a,b)............... 5,100,000 5,100,000
Hopewell Industrial Development Authority, Exempt Facility Revenue, VRDN
(Hadson Power Project) 2.30%, Series 13-A (LOC; Credit Suisse) (a,b)............... 5,700,000 5,700,000
Peninsula Ports Authority, Revenue, Refunding, VRDN:
Port Facility Revenue (Shell Coal) 2.25% (Corp. Guaranty; Shell Oil Co.) (a)....... 6,000,000 6,000,000
Terminal Revenue (Dominion Terminal Project) 2.40%, Series D (LOC; Barclays Bank) (a,b) 2,400,000 2,400,000
Richmond Industrial Development Authority, VRDN:
Exempt Facility Revenue (Cogentrix) 2.35%, Series A (LOC; Banque Paribas) (a,b).... 3,400,000 3,400,000
Revenue (Cogentrix of Richmond Project):
2.35%, Series A (LOC; Banque Paribas) (a,b).................................... 4,400,000 4,400,000
2.35%, Series B (LOC; Banque Paribas) (a,b).................................... 6,000,000 6,000,000
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
------------ ------------
VIRGINIA (CONTINUED)
Virginia Housing Development Authority:
3.10%, Series A, 12/15/94.......................................................... $ 10,000,000 $ 10,000,000
Commonwealth Mortgage 2.90%, Series B, 11/4/94 (Insured; AMBAC).................... 6,000,000 6,000,000
WASHINGTON-1.5%
Student Loan Finance Association, Guaranteed Student Loan Program, Revenue, VRDN:
2.55%, Series B (LOC; National Westminster Bank) (a,b)............................. 3,620,000 3,620,000
(Third Program) 2.65%, Series B (LOC; Sanwa Bank) (a,b)............................ 8,800,000 8,800,000
WYOMING-.9%
Lincoln County, PCR, VRDN (Exxon Project) 2.25%, Series A (Corp. Guaranty; Exxon Corp.) (a) 7,400,000 7,400,000
------------
TOTAL INVESTMENTS (cost $848,248,434).................................................. $848,248,434
============
</TABLE>
<TABLE>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOR Limited Obligation Renewal
BAN Bond Anticipation Notes MBIA Municipal Bond Insurance Association
BPA Bond Purchase Agreement MFMR Multi-Family Mortgage Revenue
CP Commercial Paper PCR Pollution Control Revenue
EDR Economic Development Revenue RAN Revenue Anticipation Notes
EIR Environment Improvement Revenue RRR Resources Recovery Revenue
FGIC Financial Guaranty Insurance Corporation SBPA Standby Bond Purchase Agreement
GIC Guaranteed Investment Contract SFMR Single Family Mortgage Revenue
GO General Obligation SWDR Solid Waste Disposal Revenue
HR Hospital Revenue TRAN Tax and Revenue Anticipation Notes
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
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) 93.6%
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 4.4
Not Rated (f) Not Rated (f) Not Rated (f) 2.0
------
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 February 28, 1994, 52.0% of the Fund's net
assets are backed by letters of credit issued by domestic banks, foreign
banks and government agencies.
(c) Fitch currently provides creditworthiness information for a limited
amount of investments.
(d) P1 and A1 are the highest ratings assigned tax-exempt commercial paper by
Moody's and Standard & Poor's, respectively.
(e) Notes which are not F, MIG or SP rated are represented by bond ratings
of the issuers.
(f) Securities which, while not rated by Fitch, Moody's or Standard & Poor's,
have been determined by the Fund's Board of Directors to be of comparable
quality to those rated securities in which the Fund may invest.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)...................................... $848,248,434
Cash............................................................................... 5,363,609
Interest receivable................................................................ 4,812,261
Prepaid expenses................................................................... 164,492
Due from The Dreyfus Corporation................................................... 865,757
------------
859,454,553
LIABILITIES:
Payable for investment securities purchased........................................ $10,058,100
Accrued expenses and other liabilities............................................. 124,614 10,182,714
----------- ------------
NET ASSETS............................................................................. $849,271,839
============
REPRESENTED BY:
Paid-in capital.................................................................... $849,278,145
Accumulated net realized (loss) on investments..................................... (6,306)
------------
NET ASSETS at value applicable to 849,278,145 outstanding shares of
Common Stock, equivalent to $1.00 per share
(3 billion shares of $.001 par value authorized)................................... $849,271,839
============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS SIX MONTHS ENDED FEBRUARY 28, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME.................................................................... $ 9,471,634
EXPENSES:
Management fee-Note 2(a)....................................................... $ 1,866,304
Shareholder servicing costs-Note 2(b).......................................... 140,734
Registration fees.............................................................. 104,702
Custodian fees................................................................. 33,103
Professional fees.............................................................. 21,244
Prospectus and shareholders' reports........................................... 7,415
Directors' fees and expenses-Note 2(c)......................................... 2,526
Miscellaneous.................................................................. 13,946
-----------
2,189,974
Less-expense reimbursement from Manager due
to undertaking-Note 2(a)................................................... 1,866,304
-----------
TOTAL EXPENSES......................................................... 323,670
------------
INVESTMENT INCOME-NET.................................................................. 9,147,964
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)........................................... (3,555)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................... $ 9,144,409
============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
AUGUST 31, FEBRUARY 28, 1994
OPERATIONS: 1993 (UNAUDITED)
----------- ------------
<S> <C> <C>
Investment income-net.............................................................. $ 12,062,881 $ 9,147,964
Net realized (loss) on investments................................................. (1,046) (3,555)
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... 12,061,835 9,144,409
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net.............................................................. (12,062,881) (9,147,964)
------------ ------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold...................................................... 1,291,906,333 757,946,233
Dividends reinvested............................................................... 11,317,181 8,599,225
Cost of shares redeemed............................................................ (846,390,497) (602,810,091)
------------ ------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS......................... 456,833,017 163,735,367
------------ ------------
TOTAL INCREASE IN NET ASSETS............................................... 456,831,971 163,731,812
NET ASSETS:
Beginning of period................................................................ 228,708,056 685,540,027
------------ ------------
End of period...................................................................... $685,540,027 $849,271,839
============ ============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net assets
and other supplemental data for each period indicated. This information has
been derived from information provided in the Fund's financial statements.
YEAR ENDED SIX MONTHS ENDED
AUGUST 31, FEBRUARY 28, 1994
------------------
PER SHARE DATA: 1992(1) 1993 (UNAUDITED)
------- ------- -------------
<S> <C> <C> <C>
Net asset value, beginning of period....................................... $1.0000 $1.0000 $1.0000
------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net...................................................... .0240 .0270 .0122
Net realized (loss) on investments......................................... -- -- --
-------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS....................................... .0240 .0270 .0122
-------- -------- --------
DISTRIBUTIONS;
Dividends from investment income-net....................................... (.0240) (.0270) (.0122)
-------- -------- --------
Net asset value, end of period............................................. $1.0000 $1.0000 $1.0000
======= ======= =======
TOTAL INVESTMENT RETURN 3.41%(2) 2.73% 2.46%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................................... -- .02% .09%(2)
Ratio of net investment income to average net assets....................... 3.22%(2) 2.64% 2.45%(2)
Decrease reflected in above expense ratios due to undertakings
by the Manager......................................................... .77%(2) .64% .50%(2)
Net Assets, end of period (000's Omitted).................................. 228,708 $685,540 $849,272
</TABLE>
(1) From December 16, 1991 (commencement of operations) to August 31, 1992.
(2) Annualized.
See independent accountants' review and notes to financial statements.
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a non-diversified open-end management investment company.
Dreyfus Service Corporation ("Distributor") acts as the exclusive
distributor of the Fund's shares, which are sold to the public without a
sales charge. The Distributor is a wholly-owned subsidiary of The Dreyfus
Corporation ("Manager").
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio
valuation and dividend and distribution policies to enable it to do so.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost,
which has been determined by the Fund's Board of Directors to represent
the fair value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Interest income, adjusted
for amortization of premiums and, when appropriate, discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Realized gain and loss from securities transactions are recorded on
the identified cost basis.
(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 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.
The Fund has an unused capital loss carryover of $1,705 available for
Federal income tax purposes to be applied against future net securities
profits, if any realized subsequent to August 31, 1993. The carryover does
not include net realized securities losses from November 1, 1992 through
August 31, 1993 which are treated, for Federal income tax purposes, as
arising in fiscal 1994. If not applied, the carryover expires in fiscal 2001.
At February 28, 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, brokerage,
interest on borrowings and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund for any full
fiscal year. The most stringent state expense limitation applicable to the
Fund presently requires reimbursement of expenses in any full fiscal year
that such expenses (excluding certain expenses as described above) exceed
2 1/2% of the first $30 million, 2% of the next $70 million and 1 1/2% of
the excess over $100 million of the average value of the Fund's net assets
in accordance with California "blue sky" regulations. However, the
Manager has
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
undertaken from September 1, 1993 through July 31, 1994, or until such
time as the net assets of the Fund exceed $1.5 billion, regardless of
whether they remain at that level, to waive receipt of the management fee
payable to it by the Fund. The expense reimbursement, pursuant to the
undertaking, amounted to $1,866,304 for the six months ended February
28, 1994.
In addition, the Manager has undertaken through June 30, 1996, to
reduce the management fee paid by the Fund, to the extent that the Fund's
aggregate expenses (excluding certain expenses as described above)
exceed an annual rate of .45 of 1% of the average daily value of the Fund's
net assets.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses the Distributor an amount not to exceed an annual rate of .25
of 1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. During the
six months ended February 28, 1994, the Fund was charged an aggregate of
$110,491 pursuant to the Shareholder Services Plan.
(C) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each director
who is not an "affiliated person" receives an annual fee of $1,000.
(D) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory approvals
and approvals of the stockholders of the Manager and of Mellon. The merger
is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
REVIEW REPORT OF ERNST & YOUNG, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND, INC.
We have reviewed the accompanying statement of assets and liabilities
of Dreyfus BASIC Municipal Money Market Fund, Inc., including the
statement of investments, as of February 28, 1994, and the related
statements of operations and changes in net assets and financial
highlights for the six month period ended February 28, 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 August 31, 1993 and financial highlights for each of the two years
in the period ended August 31, 1993 and in our report dated September 29,
1993, we expressed an unqualified opinion on such statement of changes
in net assets and financial highlights.
(Ernst & Young Signature Logo)
New York, New York
April 1, 1994
(Dreyfus `D' Logo)
DREYFUS BASIC MUNICIPAL
MONEY MARKET FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 122SA942
(Dreyfus Logo)
BASIC Municipal
Money Market
Fund, Inc.
Semi-Annual
Report
February 28, 1994
(Dreyfus Lion Logo)
