DREYFUS BASIC MONEY MARKET FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that for the six months ended August 31, 1995,
the Dreyfus BASIC Money Market Fund produced an annualized yield of 6.06%.
The annualized effective yield after taking into account the effect of
compounding was 6.23%.*
In managing your assets during this six-month period, we lengthened
maturities gradually. This was done in anticipation of lower rates, which in
fact came to pass over the course of the last six months as the economy gave
continued signs of slowing down.
For example, money market rates for three-month London Euro Certificates
of Deposit were 5.79% on August 31, 1995 compared to 6.14% six months earlier
on February 28, 1995.
The Federal Reserve Board, which raised interest rates seven times during
1994 and early 1995 to head off inflation, became concerned that the drop in
economic performance might turn into an actual business recession.
Accordingly, in early July the Fed reversed course and made a modest cut in
the Federal Funds Rate.
As of this date, the economy appears to have cooled off as compared to
the activity that prevailed last year. The future course of interest rates
will depend on the pattern of economic growth and inflation as well as the
reception accorded to budget tightening proposals in Congress.
We are closely watching these developments so that we can make any
portfolio changes that the situation may require.
We thank you for your confidence in Dreyfus and look forward to
continuing to serve your investment needs.
Sincerely,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Portfolio Manager
September 20, 1995
New York, N.Y.
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-33.1% AMOUNT VALUE
---------------- ---------------
- -<S> <C> <C>
Bank of Tokyo Ltd. (Yankee)
5.84%, 11/3/95.......................................................... $ 50,000,000 $ 50,000,000
Bayerische Vereinsbank AG (London)
6.03%-6.10%, 7/11/96-7/18/96............................................ 95,000,000 95,000,000
Canadian Imperial Bank of Commerce (London)
6.04%, 8/14/96.......................................................... 50,000,000 50,000,000
Commerzbank AG (Yankee)
6.41%, 12/4/95.......................................................... 24,000,000 23,997,993
Dai-Ichi Kangyo Bank Ltd. (London)
6.41%, 10/5/95.......................................................... 20,000,000 20,000,183
Dai-Ichi Kangyo Bank Ltd. (Yankee)
5.96%, 9/29/95.......................................................... 50,000,000 50,000,270
Deutsche Bank (London)
6.11%-6.49%, 1/17/96-8/16/96............................................ 35,000,000 35,028,928
Fuji Bank Ltd. (Yankee)
6.03%, 9/1/95........................................................... 15,000,000 15,000,000
Industrial Bank of Japan Ltd. (Yankee)
5.83%-5.87%, 10/26/95-2/8/96............................................ 95,000,000 95,001,129
Mitsubishi Bank Ltd. (London)
5.77%-6.25%, 10/12/95-1/31/96........................................... 54,000,000 54,002,059
Mitsubishi Bank Ltd. (Yankee)
6.57%, 1/22/96.......................................................... 4,000,000 4,012,332
Norinchukin Bank (London)
6.34%, 1/29/96-2/1/96................................................... 50,000,000 50,002,006
Sanwa Bank Ltd. (London)
5.80%-6.42%, 9/29/95-10/5/95............................................ 15,000,000 15,001,194
Sanwa Bank Ltd. (Yankee)
5.83%-6.52%, 10/12/95-1/8/96............................................ 36,000,000 35,999,387
Sumitomo Bank Ltd. (London)
5.90%, 10/23/95......................................................... 45,000,000 45,000,581
Sumitomo Bank Ltd. (Yankee)
5.84%-6.43%, 9/15/95-2/14/96............................................ 50,000,000 50,000,121
-----------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $688,046,183)..................................................... $688,046,183
============
BANKERS' ACCEPTANCES-1.9%
Dai-Ichi Kangyo Bank Ltd. (Yankee)
5.86%-5.93%, 1/17/96-2/15/96............................................ $ 25,000,000 $ 24,356,350
Sanwa Bank Ltd. (Yankee)
5.81%-5.90%, 12/15/95-12/22/95.......................................... 15,000,000 14,739,416
-----------
TOTAL BANKERS' ACCEPTANCES (cost $39,095,766)............................... $ 39,095,766
============
COMMERCIAL PAPER-19.0%
AES Shady Point Inc.
5.86%, 10/5/95 (a)...................................................... $ 35,297,000 $ 35,102,984
Abbey National North America
6.50%, 1/2/96........................................................... 25,000,000 24,470,417
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
COMMERCIAL PAPER (CONTINUED) AMOUNT VALUE
---------------- ----------------
Chrysler Financial Corp.
6.04%, 11/1/95.......................................................... $ 20,000,000 $ 19,799,378
Den Danske Corp. Inc.
6.50%, 12/29/95......................................................... 25,000,000 24,487,639
Ford Motor Credit Co.
5.95%-6.33%, 9/18/95-1/9/96............................................. 45,000,000 44,589,275
General Motors Acceptance Corp.
5.90%-6.51%, 10/2/95-11/27/95........................................... 55,000,000 54,521,729
Merrill Lynch & Co. Inc.
6.41%, 1/12/96.......................................................... 25,000,000 24,434,750
Mitsubishi Motors Credit of America Inc.
5.91%, 1/19/96 (a)...................................................... 45,000,000 43,994,916
NYNEX Corp.
6.19%, 9/5/95........................................................... 24,000,000 23,983,840
Orix America Inc.
6.07%, 9/29/95 (a)...................................................... 5,000,000 4,976,744
Sears Roebuck Acceptance Corp.
6.40%-6.45%, 10/2/95-1/5/96............................................. 40,000,000 39,220,631
Spintab AB
5.90%-6.20%, 9/13/95-12/20/95........................................... 54,500,000 54,076,318
-----------
TOTAL COMMERCIAL PAPER (cost $393,658,621).................................. $ 393,658,621
============
BANK NOTES-9.0%
First National Bank of Boston
5.81%, 6/5/96........................................................... $ 10,000,000 $ 10,000,000
First National Bank of Boston
5.97%-5.98%, 5/10/96-6/21/96 (b)........................................ 88,500,000 88,499,112
Morgan Guaranty Trust Co.
6.05%, 8/21/96 (b)...................................................... 20,000,000 20,000,000
NBD Bank, N.A.
6.42%, 4/26/96.......................................................... 25,000,000 25,000,000
PNC Bank N.A.
6.44%, 12/11/95......................................................... 20,000,000 20,001,716
Society National Bank
6.48%, 4/25/96.......................................................... 23,500,000 23,488,435
-----------
TOTAL BANK NOTES (cost $186,989,263)........................................ $ 186,989,263
============
CORPORATE NOTES-17.6%
Bear Stearns Companies Inc.
5.64%-6.06%, 9/15/95-6/10/96 (b)........................................ $ 85,000,000 $ 85,000,000
Comerica Bank
5.90%, 7/26/96 (b)...................................................... 30,000,000 29,999,204
General Electric Capital Corp.
5.90%-6.03%, 3/29/96-5/15/96 (b)........................................ 80,000,000 79,987,868
Merrill Lynch & Co. Inc.
5.81%-6.14%, 12/13/95-7/2/96 (b)........................................ 75,000,000 75,029,753
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
CORPORATE NOTES (CONTINUED) AMOUNT VALUE
---------------- ----------------
PHH Corp.
5.95%, 6/27/96 (b)...................................................... $ 50,000,000 $ 49,988,168
Lehman Brothers Holdings Inc.
6.20%-6.22%, 9/18/95-5/16/96 (b)........................................ 45,000,000 45,000,000
-----------
TOTAL CORPORATE NOTES (cost $365,004,993)................................... $365,004,993
============
PROMISSORY NOTES-4.8%
Goldman Sachs Group L.P.
5.81%-6.63%, 9/7/95-1/19/96 (c,d)
(cost $100,000,000)..................................................... $ 100,000,000 $100,000,000
============
U.S. GOVERNMENT AGENCIES-11.1%
Federal Farm Credit Banks
Floating Rate Notes
5.84%, 11/25/96 (b)..................................................... $ 50,000,000 $ 49,958,865
Federal Home Loan Banks
Floating Rate Notes
6.33%, 1/31/97 (b)...................................................... 5,000,000 5,000,000
Federal National Mortgage Association
Floating Rate Notes
5.90%-6.42%, 6/20/96-2/14/97 (b)........................................ 175,000,000 174,960,767
-----------
TOTAL U.S. GOVERNMENT AGENCIES (cost $229,919,632).......................... $229,919,632
============
TIME DEPOSITS-1.4%
Fleet Bank of New York (Grand Cayman)
5.84%, 9/1/95
(cost $29,720,000)...................................................... $ 29,720,000 $ 29,720,000
============
TOTAL INVESTMENTS (cost $2,032,434,458)............................. 97.9% $2,032,434,458
===== =============
CASH AND RECEIVABLES(NET)........................................... 2.1% $43,098,032
===== =============
NET ASSETS.......................................................... 100.0% $2,075,532,490
===== =============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Backed by irrevocable letter of credit.
(b) Variable interest rate - subject to periodic change.
(c) Securities restricted as to public resale. These securities were
acquired from 4/5/95 to 8/7/95 at a cost of par value. At August 31,
1995, the aggregate value of these securities is $100 million,
representing approximately 4.8% of net assets and are valued at amortized
cost.
(d) This note was acquired for investment, not with the intent to
distribute or sell.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $2,032,434,458
Cash.................................................................... 8,488,524
Receivable for investment securities sold............................... 20,320,466
Interest receivable..................................................... 17,684,828
Prepaid expenses........................................................ 96,442
-------------
2,079,024,718
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 286,426
Payable for Common Stock redeemed....................................... 2,587,658
Accrued expenses and other liabilities.................................. 618,144 3,492,228
----------- ----------
NET ASSETS.................................................................. $2,075,532,490
=============
REPRESENTED BY:
Paid-in capital......................................................... $2,075,800,206
Accumulated net realized (loss) on investments.......................... (267,716)
-------------
NET ASSETS at value applicable to 2,075,800,206 outstanding shares of
Common Stock, equivalent to $1.00 per share (3 billion shares of
$.001 par value authorized)............................................. $2,075,532,490
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED AUGUST 31, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $57,157,647
EXPENSES:
Management fee-Note 2(a).............................................. $4,523,403
Shareholder servicing costs-Note 2(b)................................. 723,340
Registration fees..................................................... 211,409
Custodian fees........................................................ 78,130
Professional fees..................................................... 40,901
Prospectus and shareholders' reports.................................. 24,350
Directors' fees and expenses-Note 2(c)................................ 10,516
Miscellaneous......................................................... 1,992
----------
5,614,041
Less-reduction in management fee due
to undertakings-Note 2(a)......................................... 3,469,685
----------
TOTAL EXPENSES.................................................... 2,144,356
----------
INVESTMENT INCOME-NET....................................................... 55,013,291
NET REALIZED (LOSS) ON INVESTMENTS-Note 1(b)................................ (51,481)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $54,961,810
===========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
FEBRUARY 28, AUGUST 31, 1995
1995 (UNAUDITED)
----------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 76,813,860 $ 55,013,291
Net realized (loss) on investments................................ (126,050) (51,481)
---------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ 76,687,810 54,961,810
---------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net............................................. (76,813,860) (55,013,291)
---------------- ---------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold..................................... 2,588,359,537 1,385,162,909
Dividends reinvested.............................................. 71,571,677 51,835,321
Cost of shares redeemed........................................... (2,253,594,949) (984,656,024)
---------------- ---------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.......... 406,336,265 452,342,206
---------------- --------------
TOTAL INCREASE IN NET ASSETS................................ 406,210,215 452,290,725
NET ASSETS:
Beginning of period............................................... 1,217,031,550 1,623,241,765
---------------- ---------------
End of period..................................................... $ 1,623,241,765 $ 2,075,532,490
================ ===============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED FEBRUARY 28, AUGUST 31, 1995
--------------------------------
PER SHARE DATA: 1993(1) 1994 1995 (UNAUDITED)
-------- ---------- --------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.................. $1.0000 $1.0001 $ .9999 $ .9999
-------- --------- -------- --------
INVESTMENT OPERATIONS:
Investment income-net................................. .0325 .0333 .0463 .0306
Net realized gain (loss) on investments............... (.0001) -- -- --
-------- --------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS.................... .0324 .0033 .0463 .0306
-------- --------- -------- --------
DISTRIBUTIONS;
Dividends from investment income-net.................. (.0323) (.0335) (.0463) (.0306)
-------- --------- -------- --------
Net asset value, end of period........................ $1.0001 $ .9999 $ .9999 $ .9999
======== ====== ======= =======
TOTAL INVESTMENT RETURN................................... 3.80%(2) 3.40% 4.73% 6.15%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... -- .10% .18% .24%(2)
Ratio of net investment income to average net assets.. 3.66%(2) 3.33% 4.70% 6.06%(2)
Decrease reflected in above expense ratios due to
undertakings by the Manager......................... .71%(2) .55% .46% .38%(2)
Net Assets, end of period (000's Omitted)............. $734,349 $1,217,032 $1,623,242 $2,075,532
(1) From April 24, 1992 (commencement of operations) to February 28, 1993.
(2) Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS BASIC MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. 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.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of 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. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income is recognized on the accrual basis. Cost of investments represents
amortized cost.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $216,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to February 28, 1995. If not
applied, $90,000 of the carryover expires in fiscal 2002 and $126,000 expires
in fiscal 2003.
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 Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense
DREYFUS BASIC MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
limitation of any state having jurisdiction over the Fund for any full fiscal
year. The most stringent state expense limitation applicable to the Fund
presently requires reimbursement of expenses in any full fiscal year that such
expenses (excluding certain expenses as described above) exceed 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 Fund's net assets in accordance with
California "blue sky" regulations. However, the Manager had undertaken from
March 1, 1995 through July 4, 1995 to waive receipt of the management fee
payable to it by the Fund in excess of an annual rate of .10 of 1% of the
Fund's average daily net assets, and thereafter, had undertaken through August
31, 1995 to reduce the management fee and reimburse such excess expenses paid
by the Fund, to the extent that the Fund's aggregate expenses (exclusive of
certain expenses as described above) exceed specified annual percentages of the
Fund's average daily net assets. The Manager has currently undertaken through
December 31, 1995, to reduce the management fee paid by the Fund, to the extent
that the Fund's aggregate annual expenses (excluding certain expenses as
described above) exceed an annual rate of .40 of 1% of the average daily value
of the Fund's net assets. The reduction in management fee, pursuant to the
undertakings, amounted to $3,469,685 for the six months ended August 31,
1995.
In addition, the Manager has undertaken through June 30, 1996, to reduce
the management fee paid by the Fund, to the extent that the Fund's aggregate
annual expenses (excluding certain expenses as described above) exceed an
annual rate of .45 of 1% of the average daily value of the Fund's net assets.
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 Fund's 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 six months ended August 31, 1995, the Fund was charged an
aggregate of $488,297 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 $1,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS BASIC MONEY MARKET FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS BASIC MONEY MARKET FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus BASIC Money Market Fund, Inc., including the statement of
investments, as of August 31, 1995, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended August 31, 1995. These financial statements and financial highlights
are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
February 28, 1995 and financial highlights for each of the three years in the
period ended February 28, 1995 and in our report dated April 4, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
October 6, 1995
[Dreyfus lion "d" logo]
DREYFUS BASIC
MONEY MARKET FUND, INC.
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. 123SA958
[Dreyfus logo]
BASIC
Money Market
Fund, Inc.
Semi-Annual
Report
August 31, 1995
