DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus BASIC New
Jersey Municipal Money Portfolio for the six-month period ended February 28,
1998. Your Portfolio produced an annualized yield of 3.02% and, after taking
into account the effect of compounding, the annualized effective yield was
3.06%.*
The Economy
U.S. economic data for the past several months shows little negative
effect from the Asian financial crisis, although many analysts warn that
additional fallout is likely to surface in the months ahead. For now, the
economy appears vibrant, with real Gross Domestic Product (GDP) growth
registering a hearty 4.3% for the fourth quarter of 1997. Meanwhile, lower
interest rates boosted mortgage refinancing activity during the first quarter
of 1998, giving consumers extra spending power and elevating the consumer
confidence level to a 30-year high. January's retail sales data delivered
mixed results, however, with the closely watched same-store sales yardstick
showing a gain of 5.9% but total U.S. retail sales registering a
smaller-than-expected increase of 0.1%. The Asian impact that has shown up
thus far appears limited to multinational firms, especially in high-tech,
electronics gear, and aerospace, which are experiencing shortfalls in Asian
business. Nonetheless, these companies are also benefiting from less
expensive components and parts prices from their Asian affiliates.
The Asian crisis has continued to dampen U.S. inflation, with weak Asian
demand pushing down commodity prices, notably oil and metals. Consumer prices
did not rise at all in January, helped out by the biggest plunge in energy
prices in seven years. Although low inflation and expectations of slower
economic growth ahead have spurred talk that the Federal Reserve Board might
ease interest rates, Chairman Alan Greenspan's testimony before the House
Banking subcommittee on February 24th strongly implied that monetary policy
would remain on hold for the present time. The Chairman noted that current
conditions were quite positive, with the lowest unemployment levels in nearly
three decades and falling inflation rates, although he did express
uncertainty about the exact fallout from Asia. Following the Chairman's
remarks, taxable money market rates edged up as the market removed the
expectation of a Fed ease that had been dampening rates and flattening the
yield curve.
Market Environment/Portfolio
While the Fed remained quiet over the summer months, market technicals
(i.e., supply/demand) played a major role in the short-term municipal market.
Supply of one-year notes dissipated as many securities matured in late June
and early July. This increase in investable cash marketwide placed temporary
downward pressure on yields. In the weeks to follow, issuers returned to the
market with their summer financings, alleviating the supply and demand
imbalance. Although much of that new supply was composed of national and
California-exempt issuances, and the supply of New Jersey-exempt issuance was
light, some New Jersey notes sold, which represented attractive buying
opportunities for your BASIC New Jersey Municipal Money Market Portfolio.
As year-end approached, we saw a temporary rise in short-term rates as a
result of corporate seasonal "window dressing." In addition, dealers priced
securities at attractive levels in order to minimize their year-end
inventory. The overall decrease in demand for securities that resulted caused
yields to rise temporarily. However, assets flowed back into the tax-exempt
money funds in early January, thereby putting downward pressure on rates.
During this time period, yields on tax-exempt money market funds fluctuated
in response to these supply and demand imbalances. By mid-January, the market
stabilized and normal trading patterns, for the most part, returned. However,
high-quality New Jersey issues continue to be in short supply, which limits
the potential for extending your Portfolio's average maturity. We will
continue to seek out appropriate buying opportunities in the New Jersey
market in the weeks ahead, as we monitor potential Fed
activity and any other significant changes in the municipal money market. All
new investments will continue to meet the high standards of credit quality
which we require, and to provide a significant level of liquidity
commensurate with the needs of the Portfolio.
Included in this report is a series of detailed statements about your
Portfolio's holdings and its financial condition. We hope they are
informative. Please know that we greatly appreciate your continued confidence
in the Portfolio and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
March 18, 1998
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested montly.
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DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS FEBRUARY 28, 1998 (UNAUDITED)
Principal
Tax Exempt Investments-100.0% Amount Value
_____________ _____________
New Jersey-97.8%
Atlantic County Improvement Authority, Revenue, VRDN (Pooled Government Loan
Program)
<S> <C> <C>
3.05% (LOC; Kredietbank) (a,b).......................................... $ 4,000,000 $ 4,000,000
Burlington County, BAN:
4.25%, 4/23/98.......................................................... 2,000,000 2,000,975
4.40%, Series C, 6/12/98................................................ 3,800,000 3,806,710
East Brunswick Township, BAN 4%, 1/7/99..................................... 3,000,000 3,008,642
Essex County Improvement Authority, Revenue, VRDN (Pooled Government Loan
Program)
3% (LOC; Banco Santander) (a,b)......................................... 4,200,000 4,200,000
Hudson County Improvement Authority, VRDN (Essential Purpose Pooled
Government)
3.40% (LOC: Comerica Bank and Fuji Bank) (a,b).......................... 4,700,000 4,700,000
Jersey City, BAN 4.25%, 1/15/99............................................. 1,500,000 1,506,098
Monmouth County Improvement Authority, Revenue, VRDN (Pooled Government Loan
Program)
2.95% (LOC; Union Bank of Switzerland) (a,b)............................ 5,000,000 5,000,000
Morristown, BAN 4.50%, 5/6/98............................................... 1,500,000 1,501,303
State of New Jersey, GO Notes 5%, Series E, 7/15/98......................... 3,055,000 3,067,365
New Jersey Economic Development Authority:
SWDR (Newark Recycling) 3.95%, 12/15/98 (LOC; Societe Generale) (b)..... 3,000,000 3,000,000
VRDN:
Dock Facility Revenue, Refunding (Bayonne/IMTT Project):
3.40%, Series A (LOC; ABN-Amro Bank) (a,b).......................... 3,300,000 3,300,000
3.45%, Series C (LOC; First Chicago Corp.) (a,b).................... 1,650,000 1,650,000
EDR, Refunding (Dow Chemical-El Dorado Terminal)
3.25%, Series 1984A (LOC; Dow Chemical Co.) (a,b)................... 6,000,000 6,000,000
Industrial and EDR (Merck and Co.)
3.60%, Series A and B (a)........................................... 1,700,000 1,700,000
Natural Gas Facilities, Revenue (NUI Corp. Project)
3.50%, Series A (LOC; The Bank of New York and Insured; AMBAC) (a,b) 5,000,000 5,000,000
Thermal Energy Facilities, Revenue (Thermal Energy Limited Partnership)
3.85% (LOC; First Chicago Corp.) (a,b).............................. 3,000,000 3,000,000
New Jersey Health Care Facilities Financing Authority, Revenue, VRDN
(Hospital Capital Asset Financing):
3.20%, Series A (LOC; Chase Manhattan Bank) (a,b)..................... 5,500,000 5,500,000
3.20%, Series D (LOC; Chase Manhattan Bank) (a,b)..................... 6,000,000 6,000,000
Refunding (Christian Health) 3.35%, Series 97B (LOC; Valley National Bank) (a,b) 3,700,000 3,700,000
New Jersey Sports and Exposition Authority, VRDN (State Contract)
3.20%, Series C (Insured; MBIA and Liquidity; Credit Suisse) (a)........ 9,945,000 9,945,000
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1998 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
_____________ _____________
New Jersey (continued)
New Jersey Turnpike Authority, Turnpike Revenue, Refunding, VRDN
2.90%, Series D (Insured; FGIC and SBPA; Societe Generale) (a).......... $ 5,900,000 $ 5,900,000
Port Authority of New York and New Jersey, Special Obligation Revenue, VRDN
(Versatile Structure Obligation):
3.50%, Series 2 (LOC; Morgan Guaranty Trust Co.) (a,b)................ 3,000,000 3,000,000
3.50%, Series 3 (BPA; Morgan Guaranty Trust Co.) (a).................. 6,700,000 6,700,000
3.50%, Series 5 (Liquidity; Bayerische Landesbank) (a)................ 5,300,000 5,300,000
3.55%, Series 4 (LOC; Landesbank Hessen) (a,b)........................ 6,100,000 6,100,000
Salem County Pollution Control Financing Authority, PCR, Refunding, VRDN
(Public Service Electric and Gas)
3.35% (BPA; Swiss Bank Corp. and Insured; MBIA) (a)..................... 6,500,000 6,500,000
Woodbridge Township, BAN:
4.25%, 7/1/98........................................................... 5,000,000 5,007,240
4.25%, 7/31/98.......................................................... 3,000,000 3,004,856
U.S. Related-2.2%
Commonwealth of Puerto Rico Government Development Bank, Refunding, VRDN
2.90% (BPA; Credit Suisse and Insured; MBIA) (a)........................ 2,800,000 2,800,000
_____________
TOTAL INVESTMENTS (cost $125,898,189)....................................... $125,898,189
=============
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DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
BAN Bond Anticipation Notes Insurance Corporation
BPA Bond Purchase Agreement PCR Pollution Control Revenue
EDR Economic Development Revenue SBPA Standby Bond Purchase Agreement
FGIC Financial Guaranty Insurance Company SWDR Solid Waste Disposal Revenue
GO General Obligation VRDN Variable Rate Demand Notes
LOC Letter of Credit
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Summary of Combined Ratings (Unaudited)
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
______ _______ ________________ _________________
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 89.4%
AAA/AA (d) Aaa/Aa (d) AAA/AA (d) 2.4
Not Rated (e) Not Rated (e) Not Rated (e) 8.2
_______
100.0%
=======
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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, 1998, 50.4% of the Fund's
net assets are backed by letters of credit issued by domestic banks, foreign
banks and corporations.
(c)Fitch currently provides creditworthiness information for a limited number
of investments.
(d)Notes which are not MIG, SP or F rated are represented by bond ratings of
the issuers.
(e)Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1998 (UNAUDITED)
Cost Value
_____________ ______________
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $125,898,189 $125,898,189
Cash....................................... 497,465
Interest receivable........................ 918,020
Prepaid expenses and other assets.......... 1,705
Due from The Dreyfus Corporation and affiliates7,029
______________
127,322,408
LIABILITIES: Accrued expenses........................... 41,597
______________
NET ASSETS.................................................................. $127,280,811
==============
REPRESENTED BY: Paid-in capital............................ $127,281,163
Accumulated net realized gain (loss) on investments (352)
______________
NET ASSETS.................................................................. $127,280,811
==============
SHARES OUTSTANDING
(1 billion shares of $.001 par value Common Stock authorized)............... 127,281,163
NET ASSET VALUE, offering and redemption price per share.................... $1.00
======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS SIX MONTHS ENDED FEBRUARY 28, 1998 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income...................... $2,318,393
EXPENSES: Management fee-Note 2(a)............. $333,749
Shareholder servicing costs-Note 2(b) 42,874
Auditing fees........................ 16,632
Custodian fees....................... 7,012
Registration fees.................... 5,989
Prospectus and shareholders' reports. 4,312
Directors' fees and expenses-Note 2(c) 1,300
Legal fees........................... 789
Miscellaneous........................ 2,614
__________
Total Expenses................. 415,271
Less-reduction in management fee due to
undertaking-Note 2(a)............ (114,749)
__________
Net Expenses................... 300,522
___________
INVESTMENT INCOME-NET................................................. 2,017,871
NET REALIZEDGAIN (LOSS) ON INVESTMENTS-Note 1(b)...................... (352)
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $2,017,519
===========
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
February 28, 1998 Year Ended
(Unaudited) August 31, 1997
__________________ ______________
OPERATIONS:
Investment income-net............................................. $ 2,017,871 $ 3,798,419
Net realized gain (loss) on investments........................... (352) -
_______________ ____________
__
Net Increase (Decrease) in Net Assets Resulting from Operations. 2,017,519 3,798,419
_______________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................. (2,017,871) (3,798,419)
_______________ ____________
CAPITALSTOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold..................................... 45,585,740 111,644,558
Dividends reinvested.............................................. 1,956,327 3,698,562
Cost of shares redeemed........................................... (56,814,288) (79,037,487)
_______________ ____________
Increase (Decrease) in Net Assets from Capital Stock Transactions (9,272,221) 36,305,633
_______________ ____________
Total Increase (Decrease) in Net Assets..................... (9,272,573) 36,305,633
NET ASSETS:
Beginning of Period............................................... 136,553,384 100,247,751
_______________ ____________
End of Period..................................................... $ 127,280,811 $ 136,553,384
=============== ============
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SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
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 the Fund's financial statements.
Six Months Ended
February 28, 1998 Year Ended August 31,
________________________
PER SHARE DATA: (Unaudited) 1997 1996(1)
__________ ______ ______
<S> <C> <C> <C>
Net asset value, beginning of period............... $1.00 $1.00 $1.00
______ ______ ______
Investment Operations:
Investment income-net.............................. .015 .031 .025
______ ______ ______
Distributions:
Dividends from investment income-net............... (.015) (.031) (.025)
______ ______ ______
Net asset value, end of period..................... $1.00 $1.00 $1.00
====== ====== ======
TOTAL INVESTMENT RETURN................................ 3.05%(2) 3.17% 3.38%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............ .43%(2) .36% .06%(2)
Ratio of net investment income
to average net assets............................ 3.02%(2) 3.12% 3.25%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager............... .19%(2) .27% .68%(2)
Net Assets, end of period (000's Omitted).......... $127,281 $136,553 $100,248
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(1) From December 1, 1995 (commencement of operations) to August 31, 1996.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus BASIC New Jersey Municipal Money Market Portfolio (the "Fund") is
a series of Dreyfus BASIC Municipal Fund, Inc. (the "Company") which 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 four series, including the Fund. The Fund's
investment objective is to provide investors with as high a level of current
income exempt from Federal and New Jersey income tax as is consistent with
the preservation of capital and maintenance of liquidity. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services,
Inc. is the distributor of the Fund's shares, which are sold to the public
without a sales charge.
The Company accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each fund are
charged to that fund's operations; expenses which are applicable to all funds
are allocated among them on a pro rata basis.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value per share of $1.00.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued at
amortized cost, which has been determined by the Company'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 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. Cost of investments represents amortized cost.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the 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.
At February 28, 1998, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to a management agreement with the Manager, the management
fee is computed at the annual rate of .50 of 1% of the value of the Fund's
average daily net assets and is payable monthly. The Manager has currently
undertaken from September 1, 1997 through June 30, 1998, to reduce the
management fee paid by the Fund to the extent that the Fund's aggregate
expenses net of earnings credits, exclusive of taxes, brokerage, interest on
borrowings and extraordinary expenses exceed an annual rate of .45 of 1% of
the value of the Fund's average daily net assets. The reduction in management
fee, pursuant to the undertakings, amounted to $114,749 during the period
ended February 28, 1998.
(b) Under the Shareholder Services Plan, the Fund 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 Fund's 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 Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended February 28, 1998, the Fund was charged $36,376
pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the
period ended February 28, 1998, the fund was charged $5,741 pursuant to the
transfer agency agreement.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the Company 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.
Registration Mark
[Dreyfus lion "d" logo]
DREYFUS BASIC NEW JERSEY
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
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 127SA982
Registration Mark
[Dreyfus logo]
BASIC New Jersey
Municipal Money
Market Portfolio
Semi-Annual
Report
February 28, 1998
