DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
LETTER TO SHAREHOLDERS
Dear Shareholder:
The Federal Reserve Board relaxed its policy of monetary restraint when
it lowered the Federal Funds rate on July 6 and stemmed the upward pressure
on short-term rates that had prevailed since the beginning of 1994. The Fed's
restraint had been based on concerns about a reigniting of inflationary
fears, given the strong economic news prevailing earlier. But by July,
reports were indicating a significant weakening trend in the economy. The
July decline in the Federal Funds rate signaled that economic growth issues
outweighed, for a time, fears of a resurgence of inflation. The Fed's easing
was limited to a lowering of the Fed Funds rate by 25 basis points; the
discount rate remained at 5.25% - its level for most of this year.
For its annual reporting period ended August 31, 1995, your Portfolio
provided a yield of 3.73%. Income dividends of approximately $.037 per share
were paid during the period. Reinvesting these dividends and calculating the
effect of this compounding resulted in an effective yield of 3.80%.* These
dividends were exempt from Federal income tax.**
THE ECONOMY
The Fed easing was triggered by concern about the weakening economy.
Economic reports indicated flagging home and auto sales and a decline in new
home construction from earlier this year. Furthermore, rising business
inventories (a frequent harbinger of a business slowdown) and weakening
retail sales lent additional credibility to the case for easier credit
conditions. By midyear, jobless claims were also on the rise. More recently,
however, economic strength has been reflected in some of the indicators
released. Inflation is moderating, but various sectors of the economy such as
consumer spending and housing appear to be picking up. It is expected that
the stronger numbers will forestall any IMMEDIATE easing by the Federal
Reserve Board. Nevertheless, we should not rule out the possibility of
another Fed move before year-end.
MARKET ENVIRONMENT
While market fundamentals do affect the short-term municipal market, the
overriding influence continues to be market technicals (i.e., supply/demand).
Since the rates on those securities which regularly are held in the Fund's
portfolio to provide a higher degree of liquidity (1-day and 7-day demand
notes) are adjusted on a daily or weekly basis, your Portfolio's yield
reflects these rapid adjustments and fluctuates accordingly. One example of
these seasonal adjustments occurred in late June and early July as demand
exceeded supply, and short-term yields on municipal issues dropped
accordingly. Apart from seasonal considerations, MONTHLY technicals can occur
also, which result in temporary drops in yields. Available supply evaporates
quickly as interest payments and proceeds of bond maturities flow into money
market funds during the first days of each month. Primarily for those
reasons, municipal money market fund yields tend to seesaw during these time
periods. In yet another example of seasonal influences, the coming weeks may
provide a window of buying opportunity, as year-end technicals are expected
to soften short-term rates temporarily.
THE PORTFOLIO
We continue to utilize our credit research facilities to locate those
credits which achieve our high internal standards and which provide your
Portfolio with attractive returns. As those issues meeting these guidelines
have become available, we have extended the Portfolio's maturity in an effort
to enhance your Portfolio's yield. Given the potential for temporary market
weakness in December, we anticipate extending your Portfolio's average
maturity in expectation of a drop in yields after the New Year. Our primary
tasks - to preserve principal, to invest in those issues that meet our
high-quality standards, and to maintain a balance of income and liquidity
consistent with our conservative management philosophy - continue to
underscore our portfolio management decisions.
Included in this report is a series of detailed statements regarding your
Portfolio's holdings and its financial condition. We hope they are
informative. Please know that we appreciate greatly your continued confidence
in the Portfolio and in Dreyfus.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 6, 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 Minimun Tax (AMT) for
certain shareholders
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF INVESTMENTS AUGUST 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS--100.0% AMOUNT VALUE
---------------- ----------------
<S> <C> <C>
ALABAMA--3.3%
Alabama Industrial Development Authority, SWDR, VRDN (Pine City Fiber Co.
Project)
3.75% (LOC; Barclays Bank) (a,b)........................................ $ 20,000,000 $ 20,000,000
City of Phenix Industrial Development Board, EIR, VRDN (Mead Coated Board
Project)
3.65%, Series A (LOC; Sumitomo Bank) (a,b).............................. 16,400,000 16,400,000
CALIFORNIA--7.0%
California Higher Education Loan Authority Inc., Student Loan Revenue, VRDN
3.65%, Series C (LOC; Student Loan Marketing Association) (a,b)......... 10,000,000 10,000,000
California Public Capital Improvement Financing Authority, Revenue (Pooled
Project)
3.70%, Series C, 9/15/95 (LOC; National Westminster Bank) (b)........... 10,000,000 10,000,000
California School Cash Reserve Program Authority
4.75%, Series A, 7/3/96 (LOC; Industrial Bank of Japan) (b)............. 30,000,000 30,241,606
South Coast Local Education Agency, Partnership Pooled, TRAN
5%, Series A, 8/14/96................................................... 15,000,000 15,068,218
Vista Community Development Commission, BAN, Refunding
4.50%, 11/1/95 (LOC; Sumitomo Trust and Banking Co.) (b)................ 10,000,000 10,000,000
COLORADO--2.4%
Colorado Student Obligation Bond Authority, Student Loan Revenue, VRDN
3.55%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 15,000,000 15,000,000
Denver Urban Renewal Authority, Tax Increment Revenue
(Downtown Denver Renewal)
4.20%, Series A, 2/15/96 (Escrowed in; U.S. Treasury Bills)............. 11,640,000 11,640,000
DELAWARE--1.4%
Delaware Economic Development Authority, Gas Facilities Revenue, VRDN
(DelMarva Power and Light)
3.75% (Corp. Guaranty; DelMarva Power and Light) (a).................... 12,000,000 12,000,000
Delaware Health Facilities Authority, Revenue, Pooled Loan Program, VRDN
3.50% (BPA; Morgan Guaranty Trust Co. and Insured; MBIA) (a)............ 3,800,000 3,800,000
DISTRICT OF COLUMBIA--2.8%
District of Columbia, VRDN (General Fund Recovery):
4.30%, Series B (LOC; Union Bank of Switzerland) (a,b).................. 6,900,000 6,900,000
4.30%, Series B-2 (LOC; Westdeutsche Landesbank) (a,b).................. 19,000,000 19,000,000
4.30%, Series B-3 (LOC; Landesbank Hessen) (a,b)........................ 5,000,000 5,000,000
FLORIDA--.6%
Putnam County Development Authority, PCR (Seminole Electric Co-op)
3.40%, Series D, 12/15/95 (Corp. Guaranty; National Rural Utility Co-op) 7,000,000 7,000,000
GEORGIA--1.8%
Savannah Economic Development Authority, Exempt Facility Revenue, VRDN
(Home Depot Project) 3.90%, Series A (Corp. Guaranty; Home Depot) (a)... 20,000,000 20,000,000
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
IDAHO--.9%
State of Idaho, TAN 4.50%, 6/27/96.......................................... $ 10,000,000 $ 10,055,294
ILLINOIS--1.8%
City of Fulton, Solid Waste Disposal Facility, Revenue (C&E Fulton Project)
4.35%, Series A, 9/7/95 (Escrowed in; U.S. Treasury Bills).............. 20,000,000 20,000,000
INDIANA--.7%
Indiana Secondary Market Educational Loans Inc., Education Loan Revenue, VRDN
3.75%, Series B
(Insured; AMBAC and LOC; Student Loan Marketing Association) (a,b)...... 7,000,000 7,000,000
IOWA--3.9%
Iowa Finance Authority, SWDR, VRDN (Cedar River Paper Co. Project)
3.55%, Series A (LOC; Swiss Bank Corp.) (a,b)........................... 11,100,000 11,100,000
Iowa School Corp., Warrant Certificates:
5.75%, Series B, 2/1/96 (Insured; Capital Guaranty)..................... 6,000,000 6,017,958
4.75%, Series A, 6/28/96 (Insured; Capital Guaranty).................... 10,000,000 10,071,220
Louisa County, PCR, Refunding, VRDN (Midwest Power System Inc. Project) 3.60% (a) 14,900,000 14,900,000
KANSAS--.5%
Butler County, Solid Waste Disposal Facilities Revenue, VRDN
(Texaco Refining and Marketing)
3.80%, Series A (Corp. Guaranty; Texaco Oil) (a)........................ 5,700,000 5,700,000
KENTUCKY--7.6%
City of Carroll, Collateralized Solid Waste Disposal Facilities Revenue, VRDN
(Utilities Co. Project) 3.75%, Series A (a)............................. 9,700,000 9,700,000
Daviss County, Solid Waste Disposal Facilities Revenue, VRDN (Scott Paper Co.
Project):
3.75%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b).................. 42,200,000 42,200,000
3.80%, Series B (LOC; ABN-Amro Bank) (a,b).............................. 21,500,000 21,500,000
Morgantown, IDR (Sumitomo Electric Wire System)
4.65%, 10/2/95 (LOC; Sumitomo Bank) (b)................................. 10,000,000 10,000,000
LOUISIANA--5.4%
New Orleans Aviation Board, Revenue, VRDN (Passenger Facility Charge
Projects)
3.90% (LOC: Banque Paribas and Canadian Imperial Bank of Commerce) (a,b) 15,000,000 15,000,000
Plaquemines Parish, Environmental Revenue, Refunding, VRDN
(British Petroleum Exploration and Oil)
3.80% (Corp. Guaranty; British Petroleum) (a)........................... 8,000,000 8,000,000
Plaquemines Port, Harbor and Terminal District, Port Facilities Revenue
(International Marine Terminal Project)
4.50%, Series A, 3/15/96 (LOC; Morgan Guaranty Trust Co.) (b)........... 9,275,000 9,275,000
Saint Charles Parish, PCR, VRDN (Shell Oil Co. Norco Project)
3.75% (Corp. Guaranty; Shell Oil Co.) (a)............................... 26,300,000 26,300,000
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
MARYLAND--.6%
Frederick, Improvement Bonds, VRDN 3.95% (LOC; Fuji Bank) (a,b)............. $ 2,000,000 $ 2,000,000
Maryland Energy Financing Administration, LOR, VRDN (Baltimore First Project)
3.65% (LOC; Credit Suisse) (a,b)........................................ 4,200,000 4,200,000
MICHIGAN--6.9%
City of Detroit School District (Wayne County) 4.50%, 5/1/96................ 12,000,000 12,050,338
Grand Rapids Economic Development Corporation, Revenue, VRDN
(Amway/Grand Plaza Hotel Facility #1) 3.65% (LOC; Old Kent Bank and Trust) (a,b) 4,000,000 4,000,000
Michigan Building Authority, CP
3.80%, 9/25/95 (LOC; Canadian Imperial Bank of Commerce) (b)............ 18,285,000 18,285,000
Michigan Higher Education Student Loan Authority, Revenue, VRDN
3.55%, Series XII-F (Insured; AMBAC and Liquidity Agreement; Sumitomo Bank) (a) 5,000,000 5,000,000
State of Michigan, GO Notes 5%, 9/29/95..................................... 35,000,000 35,021,884
MINNESOTA--1.6%
Minnesota Higher Education Coordinating Board, Revenue, VRDN
3.80% (LOC; Norwest Bank of Minnesota) (a,b)............................ 17,000,000 17,000,000
MISSOURI--3.0%
Missouri Higher Education Loan Authority, Student Loan Revenue, Refunding,
VRDN
3.85%, Series B (Insured; MBIA and SBPA; NMB Post Bank Group) (a)....... 9,500,000 9,500,000
Missouri Housing Development Commission, SFMR, VRDN
(Homeowner Loan) 4%, Series B (GIC; FGIC Trinity Funding Corp.) (a)..... 23,245,000 23,245,000
MONTANA--.5%
Montana Board of Investment, RRR, VRDN (Colstrip Project)
3.75% (LOC; Fuji Bank) (a,b)............................................ 5,600,000 5,600,000
NEW JERSEY--3.3%
Hudson County, BAN 4.55%, 10/11/95.......................................... 11,100,000 11,101,737
Monmouth County Improvement Authority, Revenue, VRDN
(Pooled Government Loan Program) 3.35% (LOC; Union Bank of Switzerland) (a,b) 8,000,000 8,000,000
New Jersey Housing Mortgage Finance Agency, Revenue
4.20%, Series 1, 9/29/95 (GIC; Bayerische Landesbank)................... 7,415,000 7,415,000
Somerset County, BAN 4.23%, 10/27/95........................................ 10,103,000 10,103,812
NEW MEXICO--.9%
New Mexico Educational Assistance Foundation, Student Loan Revenue, VRDN
3.60%, Series B (Insured; AMBAC and SBPA; International Bank of Nederland) (a) 9,400,000 9,400,000
NORTH CAROLINA--.1%
Craven County, PCR, VRDN (Craven Wood Energy)
3.75%, Series A (LOC; Mitsubishi Bank) (a,b)............................ 1,100,000 1,100,000
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
OHIO--4.8%
Cincinnati City School District Board, BAN 4.65%, 9/22/95................... $ 17,730,000 $ 17,734,896
Greene County, Certificates of Indebtedness, BAN 4.25%, Series B, 7/18/96... 23,580,000 23,669,586
Ohio Water Development Authority, PCR (Edison Project)
4.25%, Series B, 9/1/95 (LOC; Barclays Bank) (b)........................ 7,500,000 7,500,000
Student Loan Funding Corporation, Student Loan Revenue, VRDN
3.60%, Series A-3 (LOC; National Westminster Bank) (a,b)................ 3,400,000 3,400,000
OKLAHOMA--.9%
Holdenville Industrial Authority, Correctional Facility Revenue, VRDN
3.65% (LOC; First Union National Bank) (a,b)............................ 10,000,000 10,000,000
OREGON--2.1%
Klamoth Falls, Electric Revenue, (Salt Caves Hydroelectric)
4.40%, Series A, 5/1/96 (Escrowed in; US Treasury Bills)................ 21,045,000 21,045,000
State of Oregon, EDR, VRDN (Toyo Tanso USA)
4.075%, Series CXLVII (LOC; Bank of Tokyo) (a,b)........................ 2,000,000 2,000,000
PENNSYLVANIA--2.9%
Cambria County Hospital Development Authority, HR (Mercy Hospital Johnstown
Project)
5%, 3/1/96 (LOC; Bank of Tokyo) (b)..................................... 8,440,000 8,440,000
Cambria County Industrial Development Authority, RRR, VRDN (Cambria Cogen
Project)
3.70%, Series V2 (LOC; Fuji Bank) (a,b)................................. 15,700,000 15,700,000
Emmaus General Authority, Local Government Revenue, VRDN
3.90%, Series F4 (LOC; HongKong Shanghai Banking Corp.) (a,b)........... 7,900,000 7,900,000
RHODE ISLAND--.7%
Rhode Island Housing and Mortgage Financing Corporation,
Homeownership Opportunity, VRDN
3.65%, Series 1 (LOC; National Westminster Bank) (a,b).................. 8,000,000 8,000,000
SOUTH CAROLINA--.7%
South Carolina Job Economic Development Authority, EDR, VRDN (Wellman Inc.
Project)
3.85% (LOC; Wachovia Bank and Trust Co.) (a,b).......................... 8,000,000 8,000,000
SOUTH DAKOTA--1.8%
South Dakota Housing Development Authority, Homeownership Mortgage
4.95%, Series H 12/13/95 (Escrowed in; U.S. Treasury Bills)............. 20,000,000 20,000,000
TENNESSEE--2.0%
City of Memphis, VRDN 3.95%, 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) 5.03%, Series A, 1/15/96 20,250,000 20,250,000
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
TEXAS--22.2%
Brazos River Authority, PCR, VRDN (Utilities Electric Co.):
3.65%, Series C (LOC; Swiss Bank Corp.) (a,b)........................... $ 15,000,000 $ 15,000,000
3.75%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b).................. 15,000,000 15,000,000
3.80% (LOC; Union Bank of Switzerland) (a,b)............................ 53,355,000 53,355,000
Brazos River Harbor Navigation District, Harbor Revenue, VRDN
(Dow Chemical Co. Project):
3.80% (Corp. Guaranty; Dow Chemical Co.) (a).......................... 22,300,000 22,300,000
3.80%, Series A (Corp. Guaranty; Dow Chemical Co.) (a)................ 4,100,000 4,100,000
El Paso Industrial Development Authority Inc., IDR, VRDN
(El Paso School District Limited Project) 3.95% (LOC; Chemical Bank) (a,b) 4,000,000 4,000,000
Grapevine Industrial Development Corporation, Airport Revenue (Singer Co.
Project)
4.75%, Series A, 4/1/96 (LOC; Bank of Montreal) (b)..................... 5,100,000 5,100,000
Greater East Texas Higher Education Authority Inc., Student Loan Revenue, VRDN
(Senior Lien) 3.80%, Series B (LOC; Student Loan Marketing Association) (a,b) .3,000,000 3,000,000
Gulf Coast Industrial Development Authority, VRDN:
Marine Terminal Revenue (Amoco Oil Co. Project)
3.75% (Corp. Guaranty; Amoco Credit Corp.) (a)........................ 28,600,000 28,600,000
SWDR (Citgo Petroleum Corp. Project)
3.80% (LOC; Wachovia Bank of Georgia) (a,b)........................... 9,100,000 9,100,000
Gulf Coast Waste Disposal Authority, PCR, VRDN (Amoco Oil Co. Project):
3.75% (Corp. Guaranty; Amoco Credit Corp.) (a).......................... 27,400,000 27,400,000
SWDR, Refunding 3.65% (Corp. Guaranty; Amoco Credit Corp.) (a).......... 28,000,000 28,000,000
North Texas Higher Education Authority Inc., Student Loan Revenue, Refunding,
VRDN
3.75%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 10,500,000 10,500,000
Panhandle Plains Higher Education Authority Inc., Student Loan Revenue, VRDN
3.55%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 15,000,000 15,000,000
Port Development Corp., IDR, VRDN (Pasadena Terminals Project)
3.95%, Series C (LOC; ABN-Amro Bank) (a,b).............................. 2,420,000 2,420,000
UTAH--1.4%
Intermountain Power Agency, Power Supply, CP
3.80%, Series E, 10/20/95 (Liquidity Facility; Industrial Bank of Japan) 10,400,000 10,400,000
Utah Board of Regents, Student Loan Revenue, Refunding, VRDN
3.75%, Series A (LOC; Student Loan Marketing Association) (a,b)......... 5,000,000 5,000,000
VIRGINIA--3.5%
Campbell County Industrial Development Authority, Exempt Facility Revenue,
VRDN
(Hadson Power Project) 3.85%, 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) 3.85%, Series 13-A (LOC; Credit Suisse) (a,b).... 5,700,000 5,700,000
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
VIRGINIA (CONTINUED)
Richmond Industrial Development Authority, VRDN:
Exempt Facility Revenue (Cogentrix) 3.90%, Series B (LOC; Banque Paribas) (a,b) $ 3,400,000 $ 3,400,000
Revenue (Cogentrix of Richmond Project):
3.90%, Series A (LOC; Banque Paribas) (a,b)........................... 8,300,000 8,300,000
3.90%, Series B (LOC; Banque Paribas) (a,b)........................... 6,000,000 6,000,000
Virginia Housing Development Authority, Commonwealth Mortgage
3.45%, Series A, 9/12/95................................................ 10,000,000 10,000,000
-------------
TOTAL INVESTMENTS (cost $1,093,306,549)..................................... $1,093,306,549
==============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOR Limited Obligation Revenue
BAN Bond Anticipation Notes MBIA Municipal Bond Investors Asssurance
BPA Bond Purchase Agreement Insurance Corporation
CP Commercial Paper PCR Pollution Control Revenue
EDR Economic Development Revenue RRR Resources Recovery Revenue
EIR Environment Improvement Revenue SBPA Standby Bond Purchase Agreement
FGIC Financial Guaranty Insurance Company SFMR Single Family Mortgage Revenue
GIC Guaranteed Investment Contract SWDR Solid Waste Disposal Revenue
GO General Obligation TAN Tax Anticipation Notes
HR Hospital Revenue TRAN Tax and Revenue Anticipation Notes
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
<S> <C> <C> <C>
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- ---------- --------------------- ------------------------
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 87.5%
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 4.2
Not Rated (f) Not Rated (f) Not Rated (f) 8.3
-------
100.0%
=======
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, 1995, 50.6% 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
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 Fund may
invest.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $1,093,306,549
Interest receivable..................................................... 8,391,698
Prepaid expenses........................................................ 77,462
--------------
1,101,775,709
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 105,181
Due to Custodian........................................................ 2,084,097
Accrued expenses and other liabilities.................................. 152,793 2,342,071
------------- -----------
NET ASSETS.................................................................. $1,099,433,638
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,099,525,058
Accumulated net realized (loss) on investments.......................... (91,420)
--------------
NET ASSETS at value applicable to 1,099,525,058 shares outstanding
(3 billion shares of $.001 par value Common Stock authorized)........... $1,099,433,638
==============
NET ASSET VALUE, offering and redemption price per share
($1,099,433,638 / 1,099,525,058 shares)................................. $1.00
=====
STATEMENT OF OPERATIONS YEAR ENDED AUGUST 31, 1995
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 40,340,102
EXPENSES:
Management fee-Note 2(a).............................................. $5,219,151
Shareholder servicing costs-Note 2(b)................................. 556,233
Registration fees..................................................... 96,612
Custodian fees........................................................ 86,449
Professional fees..................................................... 71,047
Prospectus and shareholders' reports.................................. 17,048
Directors' fees and expenses-Note 2(c)................................ 14,641
Miscellaneous......................................................... 37,287
----------
6,098,468
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 4,674,468
----------
TOTAL EXPENSES.................................................. 1,424,000
-------------
INVESTMENT INCOME--NET...................................................... 38,916,102
NET REALIZED (LOSS) ON INVESTMENTS.......................................... (37,281)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 38,878,821
=============
See notes to financial statements.
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED AUGUST 31,
-------------------------------------
1994 1995
----------------- -----------------
OPERATIONS:
Investment income-net................................................ $ 21,978,331 $ 38,916,102
Net realized (loss) on investments................................... (51,388) (37,281)
--------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 21,926,943 38,878,821
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................ (21,978,331) (38,916,102)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 1,656,500,822 1,715,223,924
Dividends reinvested................................................. 20,702,803 36,684,023
Cost of shares redeemed.............................................. .(1,335,315,577) (1,679,813,715)
--------------- ---------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............. 341,888,048 72,094,232
--------------- ---------------
TOTAL INCREASE IN NET ASSETS................................... 341,836,660 72,056,951
NET ASSETS:
Beginning of year.................................................... 685,540,027 1,027,376,687
--------------- ---------------
End of year.......................................................... $ 1,027,376,687 $ 1,099,433,638
--------------- ==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
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,
-------------------------------------------------
PER SHARE DATA: 1992(1) 1993 1994 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of year....................... $1.0000 $1.0000 $1.0000 $ .9999
-------- -------- -------- --------
INVESTMENT OPERATIONS:
Investment income-net.................................... .0240 .0270 .0257 .0373
Net realized (loss) on investments....................... -- -- (.0001) --
-------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS....................... .0240 .0270 .0256 .0373
-------- -------- -------- --------
DISTRIBUTIONS;
Dividends from investment income-net..................... (.0240) (.0270) (.0257) (.0373)
-------- -------- -------- --------
Net asset value, end of year............................. $1.0000 $1.0000 $ .9999 $ .9999
======== ======== ========= =========
TOTAL INVESTMENT RETURN...................................... 3.41%(2) 2.73% 2.60% 3.80%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................. -- .02% .09% .14%
Ratio of net investment income to average net assets..... 3.22%(2) 2.64% 2.58% 3.73%
Decrease reflected in above expense ratios due to undertakings
by the Manager......................................... .77%(2) .64% .50% .45%
Net Assets, end of year (000's Omitted).................. $228,708 $685,540 $1,027,377 $1,099,434
(1) From December 16, 1991 (commencement of operations) to August 31, 1992.
(2) Annualized.
See notes to financial statements.
</TABLE>
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus BASIC Municipal Fund, Inc. (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
Portfolio (the "Series"). Premier Mutual Fund Services, Inc. (the
"Distributor") acts as the distributor of the Fund's shares, which are sold
to the public without a sales charge. The Distributor, located at One Exchange
Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI
Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc.,
the parent company of which is Boston Institutional Group, Inc. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A.
On October 19, 1994, the Fund's Directors approved a change of the Fund's
name, effective October 28, 1994, from "Dreyfus BASIC Municipal Money Market
Fund, Inc." to "Dreyfus BASIC Municipal Fund, Inc." and the Series was
renamed Dreyfus BASIC Municipal Money Market Portfolio.
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. There
is no assurance, however, that the Series will be able to maintain a stable
net asset value of $1.00.
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 approximately $54,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to August 31, 1995. The
carryover does not include net realized securities losses from November 1,
1994 through August 31, 1995, which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, $1,700 of the carryover
expires in fiscal 2001, $2,000 expires in fiscal 2002 and $50,300 expires in
fiscal 2003.
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At August 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).
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
(exclusive of certain expenses as described above) exceed 21\2% of the first
$30 million, 2% of the next $70 million and 11\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, 1994 through October 5, 1994 to waive receipt of the management
fee payable to it by the Series, and thereafter, had undertaken through
August 31, 1995 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 through December 31,
1995 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 .35 of 1% of the average daily value of the
Series' net assets. The reduction in management fee pursuant to the
undertakings, amounted to $4,674,468 for the year ended August 31, 1995.
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 (exclusive of 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, a wholly-owned subsidiary of the
Manager, an amount not to exceed an annual rate of .25 of 1% of the value of
the Series' average daily net assets, for certain allocated expenses of
providing personal services and/or maintaining shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Series and pro
viding reports and other information, and services related to the maintenance
of shareholder accounts. During the year ended August 31, 1995, the Series
was charged an aggregate of $427,604 pursuant to the Shareholder Services
Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
(FORMERLY DREYFUS BASIC MUNICIPAL MONEY MARKET FUND)--SEE NOTE 1
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS BASIC MUNICIPAL MONEY MARKET PORTFOLIO
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus BASIC Municipal Money
Market Portfolio (one of the Series constituting Dreyfus BASIC Municipal
Fund, Inc.) as of August 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 August 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 BASIC Municipal Money Market Portfolio at August 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.
[Ernst and Young LLP signature logo]
New York, New York
October 4, 1995
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Portfolio hereby designates all
the dividends paid from investment income-net during the fiscal year ended
August 31, 1995 as "exempt-interest dividends" (not generally subject to
regular Federal income tax).
[Dreyfus lion "d" logo]
DREYFUS BASIC MUNICIPAL
MONEY MARKET PORTFOLIO
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. 122AR958
[Dreyfus logo]
BASIC Municipal
Money Market
Portfolio
Annual Report
August 31, 1995
