LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report for Dreyfus BASIC
Municipal Money Market Fund. For the 12-month period ended August 31, 1994,
the yield provided by your Fund was 2.57%. After taking into account the
effect of compounding, the effective yield was 2.60%.* Income dividends of
approximately $.03 per share paid during the period were exempt from Federal
income tax. **
Our last letter highlighted the first of several tightening actions by
the Federal Reserve Board. The moves were designed to choke off inflationary
pressures before they had an opportunity to build significantly. During the
first phase of the Fed's move away from its accommodative stance to a more
neutral position, rate adjustments were focused solely on the Federal Funds
rate. An even stronger and more 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. At that time, the markets responded in a
positive manner, convinced and/or hopeful that this move signaled the last
action, for a time, by the Board. Subsequently, economic numbers which
reflected summer activity were released, and further evidence of continued
economic strength resulted in a unanimous vote by the Fed to duplicate their
May move. On August 16, the Board once again increased both the discount and
Fed Funds rate by 50 basis points. While opinions may vary, most market
participants believe that no further action will be taken prior to the
November elections.
During the initial changes in the Federal Reserve's monetary stance,
unease in other markets served to bolster rates in the short-term municipal
market as cash moved into municipal money markets from both equity and bond
funds. In early April, total net assets of tax exempt money market funds
reached an all-time high of over $119 billion. Since then, we have seen
changes in supply and demand conditions (i.e., technical factors) which
contributed to a reversal in cashflows. Both the impact of income tax
payments in late April (with investors tapping their money market funds) and
the renewed interest in the stock and bond markets led to declines in
municipal money fund assets. Recent data indicate overall tax exempt money
market net assets to be approximately $111 billion.
In recent weeks, many issuers returned to the marketplace with their
traditional summer financings. Sizeable issues, such as the $7 billion State
of California notes, helped to increase the overall supply of available
investment alternatives to buyers of municipal notes. In addition, the added
supply placed some upward pressure on rates, thereby affording the
opportunity to commit to attractively yielding issues in the one-year
maturity range. Throughout this environment, your Fund continued to provide
one of the highest 7-day yields in its universe of retail money market
funds.*** And while these yields have remained attractive to the investor
seeking tax exempt income, the hike in Federal tax rates which took place
last year has made these returns even more favorable on an after-tax basis.
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
Director, Municipal Portfolio Management
The Dreyfus Corporation
September 12, 1994
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.
***Source: IBC/Donoghue's Money Fund Reports for 7-day yields for this
12-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
STATEMENT OF INVESTMENTS AUGUST 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS--100.0% AMOUNT VALUE
---------------- ----------------
<S> <C> <C>
ALABAMA--3.6%
Alabama Industrial Development Authority, SWDR, VRDN (Pine City Fiber Co. Project)
3.30% (LOC; Barclays Bank) (a,b)........................................ $ 20,000,000 $ 20,000,000
Birmingham Medical Clinic Board, Revenue, VRDN (University of Alabama Health
Service Facilities) 3.15% (LOC; Morgan Guaranty Trust Co.) (a,b)........ 10,000,000 10,000,000
City of Phenix Industrial Development Board, EIR, VRDN (Mead Coated Board Project)
3.40%, Series A (LOC; Sumitomo Bank) (a,b).............................. 6,400,000 6,400,000
ARIZONA--.7%
Maricopa County Pollution Control Corp., PCR, Refunding, VRDN
(Arizona Public Service Co) 3.05%, Series E (LOC; Bank of America) (a,b) 7,000,000 7,000,000
CALIFORNIA--7.4%
State of California, RAN 3.75%, Series A, 12/21/94.......................... 15,000,000 15,024,352
California Higher Education Loan Authority Inc., Student Loan Revenue:
3.60%, Series A, 5/1/95 (LOC; Student Loan Marketing Association) (b)... 10,600,000 10,600,000
4%, Series C, 7/1/95 (LOC; Student Loan Marketing Association) (b)...... 10,000,000 10,000,000
California School Cash Reserve Program Authority,
4.50%, Series A, 7/5/95................................................. 10,000,000 10,060,727
Los Angeles County, TRAN 4.50%, 6/30/95..................................... 8,800,000 8,845,559
Los Angeles County Unified School District 4.50%, 7/10/95................... 11,175,000 11,257,925
Vista Community Development Commission, BAN, Refunding
3.375%, 11/1/94 (LOC; Sumitomo Bank) (b)................................ 10,000,000 10,000,000
COLORADO--.5%
Denver Urban Renewal Authority, Tax Increment Revenue (Downtown Denver Renewal)
3.15%, Series A, 9/8/94 (Collateralized; U.S. Treasury Bills)........... 4,940,000 4,940,000
DELAWARE--.4%
Delaware Health Facilities Authority, Revenue, Pooled Loan Program, VRDN
3.10% (BPA; Morgan Guaranty Trust Co. and Insured; MBIA) (a)............ 4,600,000 4,600,000
DISTRICT OF COLUMBIA--6.0%
District of Columbia, VRDN:
(General Fund Recovery):
3.35%, Series B (LOC; Sanwa Bank) (a,b)............................... 25,000,000 25,000,000
3.35%, Series B-2 (LOC; Sumitomo Bank) (a,b).......................... 19,100,000 19,100,000
3.35%, Series B-3 (LOC; Industrial Bank of Japan) (a,b)............... 11,000,000 11,000,000
Refunding 3.10%, Series A-5 (LOC; Mitsubishi Bank) (a,b)................ 5,800,000 5,800,000
FLORIDA--1.3%
Putnam County Development Authority, PCR (Seminole Electric Cooperative)
3.15%, Series D, 12/15/94
(Corp. Guaranty; National Rural Utilities Cooperative Finance Corp.).... 12,820,000 12,820,000
GEORGIA--2.1%
Georgia Hospital Financing Authority, Revenue, VRDN (Georgia Pooled Hospital
Loan Program) 3.25% (LOC; First Union National Bank) (a,b).............. 7,200,000 7,200,000
Municipal Electric Authority, General Resolution
3.05%, Series C, 3/1/95 (SBPA; Morgan Guaranty Trust Co.)............... 14,520,000 14,520,000
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
ILLINOIS--5.5%
City of Chicago, GO Tender Notes 3.15%, Series B, 10/31/94
(LOC: Dai-Ichi Kangyo Bank, Industrial Bank of Japan, Mitsubishi Bank,
Sanwa Bank and Sumitomo Bank) (b)....................................... $ 10,000,000 $ 10,000,000
State of Illinois, GO Notes 4.75%, 5/15/95.................................. 10,000,000 10,053,236
Illinois Development Finance Authority, Revenue, Refunding, VRDN (Olin Corp. Project)
3.20%, Series A (LOC; Credit Suisse) (a,b).............................. 6,400,000 6,400,000
Illinois Health Facilities Authority, Revenue, VRDN (Resurrection Health Care Systems)
3.35% (LOC: Comerica Bank, First National Bank of Chicago,
La Salle National Bank and National Bank of Detroit) (a,b).............. 26,000,000 26,000,000
Southwestern Development Authority, SWDR, VRDN
(Shell Oil Co. Wood River Project) 3.25% (Corp. Guaranty; Shell Oil Co.) (a) 3,800,000 3,800,000
INDIANA--2.2%
Indiana Bond Bank Advance Funding Program, Tax Exempt Notes
3.03%, Series A-2, 1/17/95.............................................. 15,000,000 15,015,411
Indiana Secondary Market Educational Loans Inc., Education Loan Revenue, VRDN
3.10%, Series F (Insured; AMBAC and LOC; Student Loan Marketing
Association) (a,b).......................................................... 7,000,000 7,000,000
IOWA--1.4%
Iowa Finance Authority, SWDR, VRDN (Cedar River Paper Co. Project)
3.35%, Series A (LOC; Swiss Bank Corp.) (a,b)........................... 13,900,000 13,900,000
KENTUCKY--6.1%
City of Danville, Multi-City Lease Revenue, CP
(Kentucky Municipal League Pooled Program) 3.25%, 9/19/94
(LOC: HongKong Shanghai Banking Corp. and Marine Midland Bank) (b)...... 3,205,000 3,205,000
Daviss County, Solid Waste Disposal Facilities Revenue, VRDN (Scott Paper Co. Project):
3.25%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b).................. 37,000,000 37,000,000
3.30%, Series B (LOC; ABN-Amro Bank) (b)................................ 12,800,000 12,800,000
Morgantown, IDR (Sumitomo Electric Wire System)
3.20%, 10/1/94 (LOC; Sumitomo Bank) (b)................................. 9,200,000 9,200,000
LOUISIANA--6.7%
Louisiana Offshore Terminal Authority, Deepwater Port Revenue, Refunding, VRDN
(Aces Loop Inc.) 3.30% (LOC; Union Bank of Switzerland) (a,b)........... 13,000,000 13,000,000
Plaquemines Port, Harbor and Terminal District, Port Facilities Revenue
(International Marine Terminal Project) 3.40%, Series A, 3/15/95
(LOC; Morgan Guaranty Trust Co.) (b).................................... 7,000,000 7,000,000
Saint Charles Parish, PCR, VRDN:
(Shell Oil Co. Project) 3.25%. Series A (a)............................. 6,000,000 6,000,000
(Shell Oil Co. Norco Project) 3.25% (Corp. Guaranty; Shell Oil Co.) (a). 42,800,000 42,800,000
MAINE--1.0%
Maine Housing Authority, Mortgage Purchase 3.70%, Series B-2, 4/13/95....... 10,000,000 10,000,000
MARYLAND--2.2%
Frederick, Improvement Bonds, VRDN 3.40% (LOC; Fuji Bank) (a,b)............. 2,200,000 2,200,000
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
MARYLAND (CONTINUED)
Maryland Energy Financing Administration, LOR, VRDN (Baltimore First Project)
3.40% (LOC; Credit Suisse) (a,b)........................................ $ 12,400,000 $ 12,400,000
Montgomery County Housing Opportunities Commission, MFMR,
2.65%, Series C, 12/1/94................................................ 8,310,000 8,310,000
MASSACHUSETTS--1.0%
Massachusetts Bay Transportation Authority, Tax Exempt Notes 3.75%, Series A, 3/1/95 10,000,000 10,028,811
MICHIGAN--5.7%
Grand Rapids Economic Development Corp., Revenue, VRDN
(Amway/Grand Plaza Hotel Facility #1) 3.10% (LOC; Old Kent Bank and Trust) (a,b) 4,000,000 4,000,000
Michigan Higher Education Student Loan Authority, Revenue, VRDN
3.20%, Series XII-F (Insured; AMBAC and Liquidity Agreement; Sumitomo Bank) (a) 5,000,000 5,000,000
Michigan Housing Development Authority, LOR, Refunding, VRDN
(Harbortown Limited Divide) 2.925% (LOC; Bankers Trust) (a,b)........... 5,000,000 5,000,000
Michigan Municipal Bond Authority, RAN 4.25%, 5/5/95........................ 15,600,000 15,676,121
Michigan Strategic Fund, PCR, Refunding, VRDN (Consumer Power Project)
3%, Series A (LOC; Union Bank of Switzerland) (a,b)..................... 16,900,000 16,900,000
Midland County Economic Development Corp., Economic Development Limited
Obligation Revenue, VRDN (Dow Chemical Co. Project) 3.50%, Series A (a). 11,900,000 11,900,000
MINNESOTA--1.3%
Becker, Tax Increment Revenue 3%, 10/1/94................................... 10,000,000 10,000,000
Minnesota Housing Financing Agency, SFMR
2.60%, Series E, 1/12/95 (GIC; Societe Generale)........................ 3,255,000 3,255,000
MONTANA--2.5%
Forsyth, PCR, VRDN (Portland General Electric Co.)
3.40% (LOC; Banque Nationale De Paris) (a,b)............................ 20,300,000 20,300,000
Montana Board of Investment, RRR, VRDN (Colstrip Project)
3.65% (LOC; Fuji Bank) (a,b)............................................ 5,600,000 5,600,000
NEW MEXICO--1.0%
New Mexico Educational Assistance Foundation, Student Loan Revenue, VRDN
3.25%, Series B (Insured; AMBAC and SBPA; International Bank of Nederland) (a) 10,000,000 10,000,000
NEW YORK--1.6%
New York City:
TAN 4.25%, Series A, 2/15/95............................................ 10,000,000 10,024,500
VRDN, 3.20%, Series E5 (LOC; Sumitomo Bank) (a,b)....................... 6,600,000 6,600,000
NORTH CAROLINA--1.7%
Halifax County Industrial Facilities and Pollution Control Financing Authority,
Exempt Facilities Revenue, VRDN (Westmoreland Hadson Project)
3.30% (LOC; Credit Suisse) (a,b)........................................ 9,900,000 9,900,000
North Carolina Eastern Municipal Power Agency, Power Systems Revenue, CP
3.15%, Series 88B, 11/23/94
(LOC: Morgan Guaranty Trust Co. and Union Bank of Switzerland) (b)...... 7,000,000 7,000,000
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
OHIO--1.0%
Ohio Water Development Authority, PCR (Edison Project)
4.25%, 9/1/95 (LOC; Barclays Bank) (b).................................. $ 7,500,000 $ 7,500,000
Student Loan Funding Corp., Student Loan Revenue, VRDN
3.25%, Series A-3 (LOC; National Westminster Bank) (a,b)................ 3,400,000 3,400,000
OREGON--2.2%
Klamoth Falls, Hydroelectric Revenue
3.75%, Series E, 5/2/95 (Escrowed in U.S. Treasury Bills)............... 20,000,000 20,000,000
State of Oregon, EDR, VRDN (Toyo Tanso USA)
3.525%, Series CXLVII (LOC; Bank of Tokyo) (a,b)........................ 2,000,000 2,000,000
PENNSYLVANIA--4.9%
Cambria County Hospital Development Authority, HR (Mercy Hospital Johnstown
Project)
3.15%, 3/1/95 (LOC; Bank of Tokyo) (b).................................. 8,620,000 8,620,000
Carbon County Industrial Development Authority, RRR, CP
(Panther Creek Partner) 3.35%, Series A, 12/15/94 (LOC; National
Westminster Bank) (b)....................................................... 6,825,000 6,825,000
Emmaus General Authority, Local Government Revenue, VRDN
3.15% (LOC; HongKong Shanghai Banking Corp.) (a,b)...................... 13,000,000 13,000,000
Geisinger Authority, Health System Revenue, VRDN
3.15%, Series B (Liquidity Facility; Morgan Bank) (a)................... 6,500,000 6,500,000
Schuykill County Industrial Development Authority, RRR, VRDN
(Northeastern Power Co. Project) 3.25%, Series B (LOC; Sumitomo Bank) (a,b) 14,800,000 14,800,000
SOUTH CAROLINA--.5%
South Carolina Job Economic Development Authority, EDR, VRDN
(Wellman Inc. Project) 3.30% (LOC; Wachovia Bank and Trust Co.) (a,b)... 5,000,000 5,000,000
TENNESSEE--2.1%
City of Memphis, VRDN 3.40%, 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--13.4%
Brazos River Authority, CP 3.30%, Series A, 12/16/94
(LOC; Canadian Imperial Bank of Commerce) (a,b)......................... 13,000,000 13,000,000
Brazos River Harbor Navigation District, Harbor Revenue, VRDN
(Dow Chemical Co. Project):
3.35% (Corp. Guaranty; Dow Chemical Co.) (a).......................... 7,500,000 7,500,000
3.35%, Series A (Corp. Guaranty; Dow Chemical Co.) (a)................ 2,700,000 2,700,000
El Paso Industrial Development Authority Inc., IDR, VRDN
(El Paso School District Limited Project) 3.35% (LOC; Chemical Bank) (a,b) 4,400,000 4,400,000
Grapevine Industrial Development Corporation, Airport Revenue (Singer Co. Project)
3.50%, 4/1/95 (LOC; Bank of Montreal) (b)............................... 5,100,000 5,100,000
Greater East Texas Higher Education Authority Inc., Student Loan Revenue, VRDN
(Senior Lien) 3.25%, Series A (LOC; Student Loan Marketing Association) (a,b) 4,200,000 4,200,000
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
TEXAS--13.4%
Gulf Coast Industrial Development Authority, VRDN:
Marine Terminal Revenue (Amoco Oil Co. Project)
3.25% (Corp. Guaranty; Amoco Credit Corp.) (a)........................ $ 19,400,000 $ 19,400,000
SWDR (Citgo Petroleum Corp. Project) 3.30% (LOC; Wachovia Bank of Georgia) (a,b) 9,100,000 9,100,000
Gulf Coast Waste Disposal Authority, PCR, VRDN (Amoco Oil Co. Project)
3.25% (Corp. Guaranty; Amoco Credit Corp.) (a).......................... 32,900,000 32,900,000
Harris County Health Facilities Development Corp., HR, VRDN (TIRR Project)
3.25% (LOC; Texas Commerce Bank) (a,b).................................. 10,200,000 10,200,000
North Texas Higher Education Authority Inc., Student Loan Revenue, Refunding, VRDN
3.10%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 10,500,000 10,500,000
Panhandle Plains Higher Education Authority Inc., Student Loan Revenue
3.35%, Series A, 3/31/95 (LOC; Student Loan Marketing Association) (b).. 15,000,000 15,000,000
Port Development Corp., IDR, VRDN (Pasadena Terminals Project)
3.05% (LOC; ABN-Amro Bank) (a,b)........................................ 2,420,000 2,420,000
UTAH--.5%
Utah Board of Regents, Student Loan Revenue, Refunding, VRDN
3.10%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 5,000,000 5,000,000
VIRGINIA--8.3%
Campbell County Industrial Development Authority, Exempt Facility Revenue, VRDN
(Hadson Power Project) 3.30%, Series 12-A (LOC; Barclays Bank) (a,b).... 5,100,000 5,100,000
Henrico County Industrial Development Authority, Health Facility Revenue, VRDN
(Hermitage Project) 3.40% (LOC; National Bank of Virginia) (a,b)........ 38,200,000 38,200,000
Hopewell Industrial Development Authority, Exempt Facility Revenue, VRDN
(Hadson Power Project) 3.30%, Series 13-A (LOC; Credit Suisse) (a,b).... 5,700,000 5,700,000
Peninsula Ports Authority, Terminal Revenue, Refunding, VRDN
(Dominion Terminal Project) 3.05%, Series D (LOC; Barclays Bank) (a,b).. 1,590,000 1,590,000
Richmond Industrial Development Authority, VRDN:
Exempt Facility Revenue (Cogentrix) 3.35%, Series A (LOC; Banque Paribas) (a,b) 3,400,000 3,400,000
Revenue (Cogentrix of Richmond Project):
3.35%, Series A (LOC; Banque Paribas) (a,b)........................... 8,300,000 8,300,000
3.35%, Series B (LOC; Banque Paribas) (a,b)........................... 6,000,000 6,000,000
Virginia Housing Development Authority, Commonwealth Mortgage:
2.90%, Series B, 11/4/94 (GIC; AMBAC)................................... 6,000,000 6,000,000
3.10%, Series A, 12/15/94............................................... 10,000,000 10,000,000
WASHINGTON--2.5%
Washington Housing Finance Commission, SFMR:
3.85%, Series F, 6/15/95 (GIC; Transamerica Corp.)...................... 9,400,000 9,400,000
Refunding 3.90%, Series D, 6/1/95 (GIC; FGIC Capital Markets Services).. 15,990,000 15,990,000
WEST VIRGINIA--2.7%
West Virginia Public Energy Authority, Energy Revenue, CP
(Morgantown Association Project) 3.25%, 11/10/94 (LOC; Swiss Bank Corp.) (b) 28,000,000 28,000,000
----------------
TOTAL INVESTMENTS (cost $1,019,431,642)..................................... $1,019,431,642
==============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOR Limited Obligation Revenue
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 TAN Tax Anticipation Notes
IDR Industrial Development Revenue TRAN Tax and Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 92.4%
F2 VMIG2/MIG2,P2 SP2, A2 1.0
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 5.7
Not Rated (f) Not Rated (f) Not Rated (f) .9
--------
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 August 31, 1994, 59.9% of the
Series' 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
number of investments.
(d) P1 and A1 are the highest ratings assigned tax-exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(e) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
(f) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's, have been determined by the Fund's Board of Directors to be of
comparable quality to those rated securities in which the Series may
invest.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value--Note 1(a).......................... $1,019,431,642
Cash.................................................................... 9,182,619
Interest receivable..................................................... 5,496,006
Prepaid expenses........................................................ 95,662
Due from The Dreyfus Corporation........................................ 865,757
----------------
1,035,071,686
LIABILITIES:
Payable for investment securities purchased............................. $7,500,000
Accrued expenses and other liabilities.................................. 194,999 7,694,999
------------ --------------
NET ASSETS ................................................................ $1,027,376,687
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,027,430,826
Accumulated net realized (loss) on investments.......................... (54,139)
----------------
NET ASSETS at value applicable to 1,027,430,826 shares outstanding
(3 billion shares of $.001 par value Common Stock authorized)........... $1,027,376,687
==============
NET ASSET VALUE, offering and redemption price per share
($1,027,376,687 / 1,027,430,826 shares)................................. $1.00
=====
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS YEAR ENDED AUGUST 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $22,715,841
EXPENSES:
Management fee--Note 2(a)............................................. $4,251,481
Shareholder servicing costs--Note 2(b)................................. 353,892
Registration fees..................................................... 209,714
Custodian fees........................................................ 71,921
Professional fees..................................................... 46,658
Prospectus and shareholders' reports.................................. 16,294
Directors' fees and expenses--Note 2(c)................................ 8,118
Miscellaneous......................................................... 30,913
------------
4,988,991
Less--management fee waived due to
undertaking--Note 2(a)............................................. 4,251,481
------------
TOTAL EXPENSES.................................................. 737,510
-------------
INVESTMENT INCOME--NET...................................................... 21,978,331
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b)............................... (51,388)
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $21,926,943
============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED AUGUST 31,
------------------------------------
1993 1994
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 12,062,881 $ 21,978,331
Net realized (loss) on investments................................... (1,046) (51,388)
---------------- ----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 12,061,835 21,926,943
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net............................................... (12,062,881) (21,978,331)
---------------- ----------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 1,291,906,333 1,656,500,822
Dividends reinvested................................................. 11,317,181 20,702,803
Cost of shares redeemed.............................................. (846,390,497) (1,335,315,577)
---------------- ----------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............. 456,833,017 341,888,048
---------------- ----------------
TOTAL INCREASE IN NET ASSETS................................... 456,831,971 341,836,660
NET ASSETS:
Beginning of year.................................................... 228,708,056 685,540,027
---------------- ----------------
End of year.......................................................... $ 685,540,027 $1,027,376,687
=============== ================
See notes to financial statements.
</TABLE>
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DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
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 year indicated. This information
has been derived from the Series' financial statements.
YEAR ENDED AUGUST 31,
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PER SHARE DATA: 1992(1) 1993 1994
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<S> <C> <C> <C>
Net asset value, beginning of year................................... $1.0000 $1.0000 $1.0000
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INVESTMENT OPERATIONS:
Investment income--net............................................... .0240 .0270 .0257
Net realized (loss) on investments................................... -- -- (.0001)
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TOTAL FROM INVESTMENT OPERATIONS................................... .0240 .0270 .0256
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DISTRIBUTIONS;
Dividends from investment income--net................................ (.0240) (.0270) (.0257)
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Net asset value, end of year......................................... $1.0000 $1.0000 $ .9999
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TOTAL INVESTMENT RETURN 3.41%(2) 2.73% 2.60%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............................. -- .02% .09%
Ratio of net investment income to average net assets................. 3.22%(2) 2.64% 2.58%
Decrease reflected in above expense ratios due to undertakings
by the Manager..................................................... .77%(2) .64% .50%
Net Assets, end of year (000's Omitted).............................. $228,708 $685,540 $1,027,377
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(1) From December 16, 1991 (commencement of operations) to August 31, 1992.
(2) Annualized
See notes to financial statements.
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DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
On March 15, 1994, Dreyfus BASIC Municipal Money Market Fund, Inc. began
operating under the name Dreyfus BASIC Municipal Fund (the "Fund"). The Fund
is registered under the Investment Company Act of 1940 ("Act") as a
non-diversified open-end management investment company and operates as a
series company currently offering three series, including the Dreyfus BASIC
Municipal Money Market Fund (the "Series"). 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. ("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 Series' policy to maintain a continuous net asset value per
share of $1.00; the Series has adopted certain investment, portfolio
valuation and dividend and distribution policies to enable it to do so.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
(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 Series' 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.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Series 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 Series 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 Series not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Series 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 Series has an unused capital loss carryover of $3,770 available for
Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to August 31, 1994. The carryover does
not include net realized securities losses from November 1, 1993 through
August 31, 1994, which are treated, for Federal income tax purposes, as
arising in fiscal 1995. If not applied, $1,705 of the carryover expires in
fiscal 2001 and $2,065 expires in fiscal 2002.
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At August 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 Series' net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Series'
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series for any full fiscal year. The most stringent
state expense limitation applicable to the Series 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 Series' net assets in accordance with
California "blue sky" regulations. However, the Manager had undertaken from
September 1, 1993 through October 5, 1994 to waive receipt of the management
fee payable to it by the Series, and thereafter had undertaken through
October 11, 1994 to reduce the management fee paid by the Series, to the
extent that the Series' aggregate expenses (excluding certain expenses as
described above) exceeded specified annual percentages of the Series' average
daily net assets. The Manager has currently undertaken from October 12, 1994
through December 31, 1994 or until such time as the net assets of the Series
exceed $1.25 billion, regardless of whether they remain at that level, to
waive receipt of the management fee payable to it by the Series in excess of
an annual rate of .05 of 1% of the Series' average daily net assets. The
management fee waived, pursuant to the undertaking, amounted to $4,251,481
for the year ended August 31, 1994.
In addition, the Manager has undertaken through June 30, 1996, to reduce
the management fee paid by the Series, to the extent that the Series'
aggregate annual expenses (excluding certain expenses as described above)
exceed an annual rate of .45 of 1% of the average daily value of the Series'
net assets.
The undertaking may be modified by the Manager, from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the agreement.
(B) Pursuant to the Series' Shareholder Services Plan, the Series
reimburses Dreyfus Service Corporation an amount not to exceed an annual rate
of .25 of 1% of the value of the Series' 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 Series and providing reports and other information,
and services related to the maintenance of shareholder accounts. During the
year ended August 31, 1994, the Series was charged an aggregate of $265,786
pursuant to the Shareholder Services Plan.
(C) Prior to August 24, 1994, certain officers and directors of the
Series were "affiliated persons," as defined in the Act, of the Manager
and/or Dreyfus Service Corporation. Each director who is not an "affiliated
person" receives an annual fee of $1,000.
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS BASIC MUNICIPAL MONEY MARKET FUND
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus BASIC Municipal Money
Market Fund (one of the Series constituting Dreyfus BASIC Municipal Fund) as
of August 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 August 31, 1994 by correspondence with the custodian
and brokers. 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 BASIC Municipal Money Market Fund at August 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.
(Ernst & Young Signature Logo)
New York, New York
October 4, 1994
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Series hereby designates all the
dividends paid from investment income-net during the fiscal year ended August
31, 1994, as "exempt-interest dividends" (not generally subject to regular
Federal income tax).
(Dreyfus Logo)
BASIC Municipal
Money Market
Fund
Annual Report
August 31, 1994
(Dreyfus Lion Logo)
(Dreyfus -D- Logo)
DREYFUS BASIC 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. 122AR948
