UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT |
INVESTMENT COMPANIES |
Investment Company Act file number | 811- 5160 |
DREYFUS NEW YORK AMT-FREE MUNICIPAL MONEY MARKET FUND |
(Exact name of Registrant as specified in charter) |
c/o The Dreyfus Corporation | ||
200 Park Avenue | ||
New York, New York 10166 | ||
(Address of principal executive offices) | (Zip code) |
Michael A. Rosenberg, Esq. |
200 Park Avenue |
New York, New York 10166 |
(Name and address of agent for service) |
Registrant's telephone number, including area code: | (212) 922-6000 |
Date of fiscal year end: | 5/31 |
Date of reporting period: | 5/31/08 |
FORM N-CSR
Item 1. | Reports to Stockholders. |
Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.
The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.
Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value
Contents | ||
THE FUND | ||
2 | A Letter from the CEO | |
3 | Discussion of Fund Performance | |
6 | Understanding Your Fund’s Expenses | |
6 | Comparing Your Fund’s Expenses | |
With Those of Other Funds | ||
7 | Statement of Investments | |
19 | Statement of Assets and Liabilities | |
20 | Statement of Operations | |
21 | Statement of Changes in Net Assets | |
22 | Financial Highlights | |
23 | Notes to Financial Statements | |
29 | Report of Independent Registered | |
Public Accounting Firm | ||
30 | Important Tax Information | |
31 | Board Members Information | |
34 | Officers of the Fund | |
FOR MORE INFORMATION | ||
Back Cover |
Dreyfus New York |
AMT-Free Municipal |
Money Market Fund |
The | Fund |
A LETTER FROM THE CEO
Dear Shareholder:
We are pleased to present this annual report for Dreyfus New York AMT-Free Municipal Money Market Fund, covering the 12-month period from June 1, 2007, through May 31, 2008.
Although the U.S. economy has teetered on the brink of recession and the financial markets have encountered heightened volatility in an ongoing credit crisis, we recently have seen signs of potential improve-ment.The Federal Reserve Board’s aggressive easing of monetary policy and innovative measures to inject liquidity into the banking system appear to have reassured many investors and economists.At Dreyfus, we believe that the current economic downturn is likely to be relatively brief by historical standards, but the ensuing recovery may be gradual and prolonged as financial deleveraging and housing price deflation continue to weigh on economic activity.
The Fed has aggressively reduced the overnight rate by 325 basis points — to 2% as of this reporting period — which has resulted in lower yields for virtually all true money market instruments. In addition, volatility in the stock and bond markets also has allowed the money markets to maintain record levels of demand, since money market funds are obligated under strict regulations to seek preservation of capital as their main function.Your financial advisor can help you assess current risks and your need for liquidity and take advantage of potential opportunities in other asset classes given your individual needs and financial goals.
For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund’s Portfolio Manager.
Thank you for your continued confidence and support.
2
DISCUSSION OF FUND PERFORMANCE
For the period of June 1, 2007, through May 31, 2008, as provided by Joseph Irace, Senior Portfolio Manager
Fund and Market Performance Overview
For the 12-month period ended May 31, 2008, Dreyfus New York AMT-Free Municipal Money Market Fund produced a yield of 2.58% . Taking into account the effects of compounding, the fund produced an effective yield of 2.61% ..1
Tax-exempt money market instruments were primarily influenced by lower short-term interest rates during the reporting period, as the Federal Reserve Board (the “Fed”) took aggressive action to stimulate economic growth and promote liquidity in the midst of a credit crisis.
The Fund’s Investment Approach
The fund seeks as high a level of current income exempt from federal, New York state and New York city income taxes as is consistent with the preservation of capital and the maintenance of liquidity.The fund also seeks to provide income exempt from the federal Alternative Minimum Tax (“AMT”).
In pursuing this objective, we employ two primary strategies. First, we normally attempt to add value by constructing a diverse portfolio of high-quality municipal obligations that provide income exempt from federal, New York state and New York city personal income taxes. Second, we actively manage the fund’s average maturity based on our anticipation of supply-and-demand changes in the short-term municipal marketplace.
For example, if we expect an increase in short-term supply, we may decrease the average maturity of the fund, which could enable us to take advantage of opportunities when short-term supply increases. Generally yields tend to rise when there is an increase in new-issue supply competing for investor interest. New securities, which generally are issued with maturities in the one-year range, may in turn lengthen the fund’s
The Fund 3
DISCUSSION OF FUND PERFORMANCE (continued)
average maturity if purchased. If we anticipate limited new-issue supply, we may then look to extend the fund’s average maturity to maintain then-current yields for as long as we believe practical. In addition, we try to maintain an average maturity that reflects our view of short-term interest-rate trends and future supply-and-demand considerations.
Credit and Economic Woes Hurt Investor Sentiment
Economic conditions deteriorated during much of the reporting period as a result of sustained weakness in U.S. housing markets and soaring food and energy costs. Moreover, a credit crisis originating in the sub-prime mortgage market spread to other asset classes, causing investors to flock to the relative safety of U.S.Treasury securities and money market funds and sparking price dislocations in longer-term fixed-income markets.
The Fed attempted to address the downturn in the economy and credit markets by injecting liquidity into the banking system and, in September 2007, cutting the federal funds rate from 5.25% to 4.75%, the first such reduction in more than four years. However, more disappointing economic data and news of massive sub-prime related losses by major financial institutions led to renewed fixed-income market turbulence,and the Fed responded with additional rate cuts in October and December.
Additional evidence of economic weakness accumulated over the first several months of 2008, including the first monthly job losses in more than four years.The Fed took particularly aggressive action in late January, easing the federal funds rate by 125 basis points in two moves.Additional reductions of 75 basis points in March and 25 basis points in April left the federal funds rate at just 2% by the end of the reporting period.
Assets Flowed into Tax-Exempt Money Market Funds
Although tax-exempt money market yields declined along with short-term interest rates, a record level of assets flowed into municipal money market funds from risk-averse investors. Early in the reporting period, rising demand was met with an ample supply of short-term variable-rate demand notes and tender option bonds driving tax-exempt money
4
market yields higher, at times, than those of longer-dated municipal notes. However, unrelenting investor demand later began to overwhelm supply, putting downward pressure on short-term yields.
The fiscal conditions of most New York issuers remained sound during the reporting period, but the economic downturn and layoffs on Wall Street are widely expected to result in renewed budget pressures for New York state and New York city.
Maintaining a Conservative Investment Posture
We generally maintained a cautious investment approach, as always, investing exclusively in instruments that have been reviewed and approved by our credit analysts. In some cases, these research efforts identified municipal money market instruments that, in our judgment, were punished too severely in the downturn and represented attractive values. We have attempted to stagger the maturities of the fund’s holdings to help cushion market volatility and guard against unexpected changes in interest rates.
Over much of the reporting period, we set the fund’s weighted average maturity in a range that was longer than industry averages in an effort to capture higher yields for as long as we deemed practical while interest rates fell. However, due to intensifying inflation concerns, it appears that the Fed’s interest-rate reductions may be complete for now. Therefore, we recently reduced the fund’s weighted average maturity to a range that is in line with industry averages.
June 16, 2008
An investment in the fund is not insured or guaranteed by the FDIC or any other government | ||
agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is | ||
possible to lose money by investing in the fund. | ||
1 | Effective yield is based upon dividends declared daily and reinvested monthly. Past performance is | |
no guarantee of future results.Yields fluctuate. Income may be subject to state and local taxes for | ||
non-NewYork residents. |
The Fund 5
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus New York AMT-Free Municipal Money Market Fund from December 1, 2007 to May 31, 2008. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.
Expenses and Value of a $1,000 Investment | ||
assuming actual returns for the six months ended May 31, 2008 | ||
Expenses paid per $1,000 † | $ 3.27 | |
Ending value (after expenses) | $1,010.80 |
COMPARING YOUR FUND’S EXPENSES |
WITH THOSE OF OTHER FUNDS (Unaudited) |
Using the SEC’s method to compare expenses
The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
Expenses and Value of a $1,000 Investment | ||
assuming a hypothetical 5% annualized return for the six months ended May 31, 2008 | ||
Expenses paid per $1,000 † | $ 3.29 | |
Ending value (after expenses) | $1,021.75 |
† Expenses are equal to the fund’s annualized expense ratio of .65%, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
6
STATEMENT OF INVESTMENTS |
May 31, 2008 |
Short-Term | Coupon | Maturity | Principal | |||||
Investments—102.2% | Rate (%) | Date | Amount ($) | Value ($) | ||||
Albany Industrial Development | ||||||||
Agency, Civic Facility Revenue | ||||||||
(Albany College of Pharmacy | ||||||||
Project) (LOC; TD Banknorth NA) | 1.60 | 6/7/08 | 1,830,000 a | 1,830,000 | ||||
Albany Industrial Development | ||||||||
Agency, Civic Facility Revenue | ||||||||
(Renaissance Corporation of | ||||||||
Albany Project) (LOC; M&T Bank) | 1.77 | 6/7/08 | 2,900,000 a | 2,900,000 | ||||
Albany Industrial Development | ||||||||
Agency, Civic Facility Revenue | ||||||||
(University at Albany | ||||||||
Foundation Student Housing | ||||||||
Corporation—Empire Commons | ||||||||
East Project) (Insured; AMBAC | ||||||||
and Liquidity Facility; Key Bank) | 3.90 | 6/7/08 | 1,000,000 a | 1,000,000 | ||||
Albany Industrial Development | ||||||||
Agency, Civic Facility Revenue | ||||||||
(University at Albany | ||||||||
Foundation Student Housing | ||||||||
Corporation—Empire Commons | ||||||||
North Project) (Insured; AMBAC | ||||||||
and Liquidity Facility; Key Bank) | 3.90 | 6/7/08 | 800,000 a | 800,000 | ||||
Allegany County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Houghton | ||||||||
College Project) (LOC; Key Bank) | 1.74 | 6/7/08 | 4,300,000 a | 4,300,000 | ||||
Amsterdam Enlarged City School | ||||||||
District, GO Notes, BAN | 4.00 | 7/3/08 | 1,000,000 | 1,000,210 | ||||
Avoca Central School District, | ||||||||
GO Notes, BAN | 4.00 | 6/26/08 | 1,700,000 | 1,700,224 | ||||
Cazenovia Central School District, | ||||||||
GO Notes, BAN | 2.75 | 6/5/09 | 1,650,288 b | 1,661,592 | ||||
Chautauqua County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (United | ||||||||
Cerebral Palsy Project) | ||||||||
(LOC; Key Bank) | 1.74 | 6/7/08 | 895,000 a | 895,000 | ||||
Cincinnatus Central School | ||||||||
District, GO Notes, BAN | 4.00 | 6/18/08 | 3,000,000 | 3,000,334 |
The Fund 7
STATEMENT OF INVESTMENTS (continued)
Short-Term | Coupon | Maturity | Principal | |||||
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
Dutchess County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue, Refunding | ||||||||
(Lutheran Center at | ||||||||
Poughkeepsie, Inc. Project) | ||||||||
(LOC; Key Bank) | 1.70 | 6/7/08 | 1,800,000 a | 1,800,000 | ||||
East Hampton, | ||||||||
GO Notes, BAN | 2.00 | 6/4/09 | 1,400,000 b | 1,402,744 | ||||
Erie County Industrial Development | ||||||||
Agency, Civic Facility Revenue | ||||||||
(Community Services Disabled | ||||||||
Project) (LOC; Key Bank) | 1.74 | 6/7/08 | 2,610,000 a | 2,610,000 | ||||
Erie County Industrial Development | ||||||||
Agency, Civic Facility Revenue | ||||||||
(DePaul Community Facilities | ||||||||
Inc. Project) (LOC; Key Bank) | 1.74 | 6/7/08 | 1,200,000 a | 1,200,000 | ||||
Erie County Industrial Development | ||||||||
Agency, Civic Facility Revenue | ||||||||
(Every Person Influences | ||||||||
Children, Inc. Project) | ||||||||
(LOC; Fifth Third Bank) | 1.69 | 6/7/08 | 1,265,000 a | 1,265,000 | ||||
Erie County Industrial Development | ||||||||
Agency, Civic Facility Revenue | ||||||||
(People Inc. Project) | ||||||||
(LOC; Key Bank) | 1.74 | 6/7/08 | 2,110,000 a | 2,110,000 | ||||
Erie County Industrial Development | ||||||||
Agency, Civic Facility Revenue | ||||||||
(United Cerebral Palsy Association | ||||||||
Project) (LOC; Key Bank) | 1.74 | 6/7/08 | 625,000 a | 625,000 | ||||
Glens Falls City School District, | ||||||||
GO Notes, RAN | 4.25 | 6/18/08 | 1,000,000 | 1,000,223 | ||||
Grand Central District Management | ||||||||
Association, Inc., Grand | ||||||||
Central Business Improvement | ||||||||
District, Revenue, Refunding | ||||||||
(Capital Improvement) | 5.00 | 1/1/09 | 125,000 | 126,568 | ||||
Greater Southern Tier Board of | ||||||||
Cooperative Educational | ||||||||
Services Sole Supervisory | ||||||||
District in the Counties of | ||||||||
Steuben, Allegany, Schuyler, | ||||||||
Chemung and Tioga, RAN | 3.25 | 6/30/08 | 3,400,000 | 3,405,269 |
8
Short-Term | Coupon | Maturity | Principal | |||||
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
Hamburg Central School District, | ||||||||
GO Notes, BAN | 4.25 | 7/3/08 | 2,100,000 | 2,100,794 | ||||
Herkimer County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Templeton | ||||||||
Foundation Project) | ||||||||
(LOC; Key Bank) | 1.74 | 6/7/08 | 1,620,000 a | 1,620,000 | ||||
Hudson Yards Infrastructure | ||||||||
Corporation, Hudson Yards | ||||||||
Senior Revenue (Insured; FGIC | ||||||||
and Liquidity Facility; | ||||||||
Landesbank Hessen-Thuringen | ||||||||
Girozentrale) | 1.64 | 6/7/08 | 13,800,000 a,c | 13,800,000 | ||||
Lakeland Central School District | ||||||||
of Shrub Oak, GO Notes | ||||||||
(Insured; FSA) | 3.25 | 6/15/08 | 236,353 | 236,420 | ||||
Lakeland Central School District | ||||||||
of Shrub Oak, GO Notes | ||||||||
(Insured; FSA) | 3.25 | 6/15/08 | 335,000 | 335,094 | ||||
Lancaster Industrial Development | ||||||||
Agency, Civic Facility Revenue | ||||||||
(GreenField Manor, Inc. | ||||||||
Project) (LOC; M&T Bank) | 1.75 | 6/7/08 | 400,000 a | 400,000 | ||||
Monroe County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (YMCA of | ||||||||
Greater Rochester Project) | ||||||||
(LOC; M&T Bank) | 1.67 | 6/7/08 | 2,300,000 a | 2,300,000 | ||||
Monroe County Industrial | ||||||||
Development Agency, IDR | ||||||||
(National Development Council | ||||||||
Multi-Issue Facilities) | ||||||||
(LOC; HSBC Bank USA) | 4.10 | 6/16/08 | 550,000 | 550,000 | ||||
Nassau County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (North Shore | ||||||||
Hebrew Academy High School | ||||||||
Project) (LOC; Comerica Bank) | 1.65 | 6/7/08 | 11,545,000 a | 11,545,000 | ||||
New York City | ||||||||
(Insured; FSA and Liquidity | ||||||||
Facility; Dexia Credit Locale) | 1.15 | 6/1/08 | 2,000,000 a | 2,000,000 |
The Fund 9
STATEMENT OF INVESTMENTS (continued)
Short-Term | Coupon | Maturity | Principal | |||||
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
New York City | ||||||||
(Insured; FSA and Liquidity | ||||||||
Facility; State Street Bank | ||||||||
and Trust Co.) | 1.35 | 6/1/08 | 1,200,000 a | 1,200,000 | ||||
New York City | ||||||||
(Insured; FSA and Liquidity | ||||||||
Facility; State Street Bank | ||||||||
and Trust Co.) | 1.35 | 6/1/08 | 3,335,000 a | 3,335,000 | ||||
New York City | ||||||||
(Insured; MBIA, Inc. and Liquidity | ||||||||
Facility; Dexia Credit Locale) | 1.55 | 6/7/08 | 6,400,000 a | 6,400,000 | ||||
New York City | ||||||||
(Liquidity Facility; Allied | ||||||||
Irish Banks) | 1.30 | 6/1/08 | 12,000,000 a | 12,000,000 | ||||
New York City | ||||||||
(Liquidity Facility; | ||||||||
Wachovia Bank) | 1.15 | 6/1/08 | 15,700,000 a | 15,700,000 | ||||
New York City | ||||||||
(LOC; Bank of America) | 1.35 | 6/1/08 | 7,300,000 a | 7,300,000 | ||||
New York City | ||||||||
(LOC; Fortis Bank) | 1.22 | 6/1/08 | 4,000,000 a | 4,000,000 | ||||
New York City | ||||||||
(LOC; JPMorgan Chase Bank) | 1.35 | 6/1/08 | 1,050,000 a | 1,050,000 | ||||
New York City, | ||||||||
GO Notes | 4.00 | 8/1/08 | 250,000 | 250,080 | ||||
New York City, | ||||||||
GO Notes | 4.88 | 8/1/08 | 100,000 | 100,417 | ||||
New York City, | ||||||||
GO Notes | 5.00 | 8/1/08 | 300,000 | 301,284 | ||||
New York City, | ||||||||
GO Notes | 5.00 | 8/1/08 | 300,000 | 301,284 | ||||
New York City, | ||||||||
GO Notes | 5.25 | 8/1/08 | 165,000 | 165,737 | ||||
New York City, | ||||||||
GO Notes | 5.75 | 5/15/09 | 985,000 | 1,019,686 | ||||
New York City Housing | ||||||||
Development Corporation, | ||||||||
Multi-Family Rental Housing | ||||||||
Revenue (2 Gold Street) | ||||||||
(Liquidity Facility; | ||||||||
FNMA and LOC; FNMA) | 1.52 | 6/7/08 | 6,000,000 a | 6,000,000 |
10
Short-Term | Coupon | Maturity | Principal | |||||
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
New York City Housing Development | ||||||||
Corporation, Residential Revenue | ||||||||
(Queens College Residences) | ||||||||
(LOC; RBS Citizen’s NA) | 1.57 | 6/7/08 | 2,200,000 a | 2,200,000 | ||||
New York City Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Birch Wathen | ||||||||
Lenox School Project) | ||||||||
(LOC; Allied Irish Banks) | 1.65 | 6/7/08 | 5,150,000 a | 5,150,000 | ||||
New York City Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Jewish | ||||||||
Community Center on the Upper | ||||||||
West Side, Inc. Project) | ||||||||
(LOC; M&T Bank) | 1.67 | 6/7/08 | 4,700,000 a | 4,700,000 | ||||
New York City Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Mercy | ||||||||
College Project) (LOC; Key Bank) | 1.60 | 6/7/08 | 1,945,000 a | 1,945,000 | ||||
New York City Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Village | ||||||||
Community School Project) | ||||||||
(LOC; M&T Bank) | 1.70 | 6/7/08 | 1,100,000 a | 1,100,000 | ||||
New York City Transitional Finance | ||||||||
Authority, Future Tax Secured | ||||||||
Revenue (Liquidity Facility; | ||||||||
Bayerische Landesbank) | 1.55 | 6/1/08 | 3,000,000 a | 3,000,000 | ||||
New York City Transitional Finance | ||||||||
Authority, Future Tax Secured | ||||||||
Revenue (Liquidity Facility; | ||||||||
Landesbank Hessen-Thuringen | ||||||||
Girozentrale) | 1.30 | 6/1/08 | 500,000 a | 500,000 | ||||
New York City Transitional Finance | ||||||||
Authority, Revenue (New York | ||||||||
City Recovery) (Liquidity | ||||||||
Facility; Bayerische Landesbank) | 1.30 | 6/1/08 | 6,665,000 a | 6,665,000 | ||||
New York City Transitional Finance | ||||||||
Authority, Revenue (New York | ||||||||
City Recovery) (Liquidity | ||||||||
Facility; Citigroup Global | ||||||||
Market Holdings) | 1.24 | 6/1/08 | 2,700,000 a | 2,700,000 |
The Fund 11
STATEMENT OF INVESTMENTS (continued)
Short-Term | Coupon | Maturity | Principal | |||||
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
New York City Transitional Finance | ||||||||
Authority, Revenue (New York | ||||||||
City Recovery) (Liquidity | ||||||||
Facility; JPMorgan Chase Bank) | 1.55 | 6/1/08 | 2,750,000 a | 2,750,000 | ||||
New York City Transitional Finance | ||||||||
Authority, Revenue (New York | ||||||||
City Recovery) (Liquidity | ||||||||
Facility; Royal Bank of Canada) | 1.30 | 6/1/08 | 3,100,000 a | 3,100,000 | ||||
New York City Transitional Finance | ||||||||
Authority, Revenue (New York | ||||||||
City Recovery) (Liquidity | ||||||||
Facility; Royal Bank of Canada) | 1.55 | 6/1/08 | 2,165,000 a | 2,165,000 | ||||
New York City Trust for Cultural | ||||||||
Resources, Revenue, Refunding | ||||||||
(American Museum of Natural | ||||||||
History) (Insured; MBIA, Inc. and | ||||||||
Liquidity Facility; Landesbank | ||||||||
Hessen-Thuringen Girozentrale) | 1.75 | 6/7/08 | 2,500,000 a | 2,500,000 | ||||
New York Counties Tobacco Trust | ||||||||
IV, Tobacco Settlement | ||||||||
Pass-Through Bonds (Liquidity | ||||||||
Facility; Merrill Lynch | ||||||||
Capital Services and LOC; | ||||||||
Merrill Lynch) | 1.70 | 6/7/08 | 7,330,000 a,c | 7,330,000 | ||||
New York Local Government | ||||||||
Assistance Corporation, | ||||||||
Subordinate Lien Revenue, | ||||||||
Refunding | 5.00 | 4/1/09 | 500,000 | 512,285 | ||||
New York State, | ||||||||
GO Notes (LOC; Dexia | ||||||||
Credit Locale) | 1.75 | 10/8/08 | 4,000,000 | 4,000,000 | ||||
New York State Dormitory | ||||||||
Authority, Revenue (Mount | ||||||||
Saint Mary College) (LOC; | ||||||||
JPMorgan Chase Bank) | 1.60 | 6/7/08 | 9,000,000 a | 9,000,000 | ||||
New York State Dormitory | ||||||||
Authority, Revenue (Park Ridge | ||||||||
Hospital Inc.) (LOC; JPMorgan | ||||||||
Chase Bank) | 1.62 | 6/7/08 | 5,100,000 a | 5,100,000 |
12
Short-Term | Coupon | Maturity | Principal | |||||
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
New York State Dormitory | ||||||||
Authority, Revenue (University | ||||||||
of Rochester) (Insured; MBIA, Inc. | ||||||||
and Liquidity Facility; | ||||||||
Wachovia Bank) | 1.75 | 6/7/08 | 8,000,000 a | 8,000,000 | ||||
New York State Urban Development | ||||||||
Corporation, COP (James A. | ||||||||
Farley Post Office Project) | ||||||||
(Liquidity Facility; Citigroup | ||||||||
and LOC; Citigroup) | 1.67 | 6/7/08 | 5,600,000 a,c | 5,600,000 | ||||
North Syracuse Central School | ||||||||
District, GO Notes, BAN | 2.50 | 6/19/09 | 2,965,459 b | 2,981,443 | ||||
North Syracuse Central School | ||||||||
District, GO Notes, RAN | 4.00 | 6/19/08 | 1,100,000 | 1,100,130 | ||||
Olean, | ||||||||
GO Notes, RAN | 4.00 | 8/14/08 | 1,700,000 | 1,700,660 | ||||
Ontario County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Friends of the | ||||||||
Finger Lakes Performing Arts | ||||||||
Center, Inc. Civic Facility) (LOC; | ||||||||
Citizens Bank of Massachusetts) | 1.65 | 6/7/08 | 3,335,000 a | 3,335,000 | ||||
Orangetown, | ||||||||
GO Notes, BAN | 4.00 | 10/3/08 | 1,000,000 | 1,001,865 | ||||
Oswego County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Springside | ||||||||
at Seneca Hill, Inc. Project) | ||||||||
(LOC; M&T Bank) | 1.72 | 6/7/08 | 2,610,000 a | 2,610,000 | ||||
Otsego County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Saint James | ||||||||
Retirement Community Project) | ||||||||
(LOC; M&T Bank) | 1.67 | 6/7/08 | 2,180,000 a | 2,180,000 | ||||
Otsego County Industrial | ||||||||
Development Agency, Civic Facility | ||||||||
Revenue (Templeton Foundation | ||||||||
Project) (LOC; Key Bank) | 1.74 | 6/7/08 | 3,200,000 a | 3,200,000 |
The Fund 13
STATEMENT OF INVESTMENTS (continued)
Short-Term | Coupon | Maturity | Principal | |||||
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
Patchogue-Medford Union Free | ||||||||
School District, GO Notes, TAN | 4.50 | 6/27/08 | 5,300,000 | 5,303,041 | ||||
Port Authority of New York and New | ||||||||
Jersey, Equipment Notes | 1.68 | 6/7/08 | 2,800,000 a | 2,800,000 | ||||
Poughkeepsie, | ||||||||
Public Improvement GO Notes | ||||||||
(Insured; MBIA, Inc.) | 4.00 | 6/15/08 | 162,930 | 162,942 | ||||
Putnam County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (United | ||||||||
Cerebral Palsy of Putnam and | ||||||||
Southern Dutchess Project) | ||||||||
(LOC; Commerce Bank N.A.) | 1.67 | 6/7/08 | 4,300,000 a | 4,300,000 | ||||
Rensselaer County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (The Sage | ||||||||
Colleges Project) (LOC; M&T Bank) | 1.77 | 6/7/08 | 2,170,000 a | 2,170,000 | ||||
Rockland County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Dominican | ||||||||
College of Blauvelt Project) | ||||||||
(LOC; Commerce Bank N.A.) | 1.60 | 6/7/08 | 8,400,000 a | 8,400,000 | ||||
Salamanca City Central School | ||||||||
District, GO Notes, BAN | 4.00 | 9/26/08 | 1,200,000 | 1,203,288 | ||||
Seneca County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Kidspace | ||||||||
National Centers of New York | ||||||||
Project) (LOC; Key Bank) | 1.74 | 6/7/08 | 1,495,000 a | 1,495,000 | ||||
Suffolk County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Hampton Day | ||||||||
School Civic Facility) (LOC; | ||||||||
JPMorgan Chase Bank) | 1.66 | 6/7/08 | 2,725,000 a | 2,725,000 | ||||
Syracuse Industrial Development | ||||||||
Agency, Civic Facility Revenue | ||||||||
(Community Development | ||||||||
Properties-Larned Project) | ||||||||
(LOC; M&T Bank) | 1.77 | 6/7/08 | 2,200,000 a | 2,200,000 |
14
Short-Term | Coupon | Maturity | Principal | |||||
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
Tobacco Settlement Financing | ||||||||
Corporation of New York, | ||||||||
Asset-Backed Revenue Bonds | ||||||||
(State Contingency | ||||||||
Contract Secured) | 5.00 | 6/1/08 | 150,000 | 150,000 | ||||
Tobacco Settlement Financing | ||||||||
Corporation of New York, | ||||||||
Asset-Backed Revenue Bonds | ||||||||
(State Contingency | ||||||||
Contract Secured) | 5.00 | 6/1/08 | 2,095,000 | 2,095,000 | ||||
Tobacco Settlement Financing | ||||||||
Corporation of New York, | ||||||||
Asset-Backed Revenue Bonds | ||||||||
(State Contingency Contract | ||||||||
Secured) (Putters Program) | ||||||||
(LOC; JPMorgan Chase Bank) | 1.87 | 6/7/08 | 4,995,000 a,c | 4,995,000 | ||||
Watervliet City School District, | ||||||||
GO Notes, BAN | 4.00 | 6/30/08 | 1,900,000 | 1,900,292 | ||||
Westchester County Industrial | ||||||||
Development Agency, | ||||||||
Civic Facility Revenue | ||||||||
(Mercy College Project) | ||||||||
(LOC; Key Bank) | 1.60 | 6/7/08 | 1,700,000 a | 1,700,000 | ||||
Westchester County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Northern | ||||||||
Westchester Hospital | ||||||||
Association Civic Facility) | ||||||||
(LOC; Commerce Bank N.A.) | 1.60 | 6/7/08 | 2,055,000 a | 2,055,000 | ||||
Westchester County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue (Westchester | ||||||||
Arts Council, Inc. Project) | ||||||||
(LOC; Wachovia Bank) | 1.66 | 6/7/08 | 3,015,000 a | 3,015,000 | ||||
Westchester County Industrial | ||||||||
Development Agency, Civic | ||||||||
Facility Revenue, Refunding | ||||||||
(Rye Country Day School | ||||||||
Project) (LOC; Allied Irish Banks) | 1.67 | 6/7/08 | 4,800,000 a | 4,800,000 |
The Fund 15
STATEMENT OF INVESTMENTS (continued)
Short-Term | Coupon | Maturity | Principal | |||||
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
White Plains, | ||||||||
Public Improvement GO Notes | ||||||||
(Insured; FSA) | 3.38 | 1/15/09 | 245,000 | 245,933 | ||||
Yorktown Central School District, | ||||||||
GO Notes, BAN | 3.00 | 10/2/08 | 1,900,000 | 1,904,721 | ||||
Total Investments (cost $278,389,560) | 102.2% | 278,389,560 | ||||||
Liabilities, Less Cash and Receivables | (2.2%) | (6,062,970) | ||||||
Net Assets | 100.0% | 272,326,590 |
a Securities payable on demand.Variable interest rate—subject to periodic change. |
b Purchased on a delayed delivery basis. |
c Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in |
transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2008, these securities |
amounted to $31,725,000 or 11.6% of net assets. |
16
Summary of Abbreviations | ||||||
ABAG | Association of Bay Area Governments | ACA | American Capital Access | |||
AGC | ACE Guaranty Corporation | AGIC | Asset Guaranty Insurance Company | |||
AMBAC | American Municipal Bond | |||||
Assurance Corporation | ARRN | Adjustable Rate Receipt Notes | ||||
BAN | Bond Anticipation Notes | BIGI | Bond Investors Guaranty Insurance | |||
BPA | Bond Purchase Agreement | CGIC | Capital Guaranty Insurance Company | |||
CIC | Continental Insurance Company | CIFG | CDC Ixis Financial Guaranty | |||
CMAC | Capital Market Assurance Corporation | COP | Certificate of Participation | |||
CP | Commercial Paper | EDR | Economic Development Revenue | |||
EIR | Environmental Improvement Revenue | FGIC | Financial Guaranty Insurance | |||
Company | ||||||
FHA | Federal Housing Administration | FHLB | Federal Home Loan Bank | |||
FHLMC | Federal Home Loan Mortgage | FNMA | Federal National | |||
Corporation | Mortgage Association | |||||
FSA | Financial Security Assurance | GAN | Grant Anticipation Notes | |||
GIC | Guaranteed Investment Contract | GNMA | Government National | |||
Mortgage Association | ||||||
GO | General Obligation | HR | Hospital Revenue | |||
IDB | Industrial Development Board | IDC | Industrial Development Corporation | |||
IDR | Industrial Development Revenue | LOC | Letter of Credit | |||
LOR | Limited Obligation Revenue | LR | Lease Revenue | |||
MFHR | Multi-Family Housing Revenue | MFMR | Multi-Family Mortgage Revenue | |||
PCR | Pollution Control Revenue | PILOT | Payment in Lieu of Taxes | |||
RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes | |||
RAW | Revenue Anticipation Warrants | RRR | Resources Recovery Revenue | |||
SAAN | State Aid Anticipation Notes | SBPA | Standby Bond Purchase Agreement | |||
SFHR | Single Family Housing Revenue | SFMR | Single Family Mortgage Revenue | |||
SONYMA | State of New York Mortgage Agency | SWDR | Solid Waste Disposal Revenue | |||
TAN | Tax Anticipation Notes | TAW | Tax Anticipation Warrants | |||
TRAN | Tax and Revenue Anticipation Notes | XLCA | XL Capital Assurance |
The Fund 17
STATEMENT OF INVESTMENTS (continued)
Summary of Combined Ratings (Unaudited) | ||||||||||
Fitch | or | Moody’s | or | Standard & Poor’s | Value (%) † | |||||
F1+,F1 | VMIG1,MIG1,P1 | SP1+,SP1,A1+,A1 | 73.2 | |||||||
AAA,AA,A d | Aaa,Aa,A d | AAA,AA,A d | 7.4 | |||||||
Not Rated e | Not Rated e | Not Rated e | 19.4 | |||||||
100.0 |
† | Based on total investments. | |
d | Notes which are not F, MIG and SP 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. |
18
STATEMENT OF ASSETS AND LIABILITIES |
May 31, 2008 |
Cost | Value | |||
Assets ($): | ||||
Investments in securities—See Statement of Investments | 278,389,560 | 278,389,560 | ||
Interest receivable | 1,548,177 | |||
Prepaid expenses | 12,408 | |||
279,950,145 | ||||
Liabilities ($): | ||||
Due to The Dreyfus Corporation and affiliates—Note 2(b) | 122,300 | |||
Cash overdraft due to Custodian | 1,383,289 | |||
Payable for investment securities purchased | 6,045,779 | |||
Payable for shares of Beneficial Interest redeemed | 7,593 | |||
Accrued expenses | 64,594 | |||
7,623,555 | ||||
Net Assets ($) | 272,326,590 | |||
Composition of Net Assets ($): | ||||
Paid-in capital | 272,311,325 | |||
Accumulated net realized gain (loss) on investments | 15,265 | |||
Net Assets ($) | 272,326,590 | |||
Shares Outstanding | ||||
(unlimited number of $.001 par value shares of Beneficial Interest authorized) | 272,344,436 | |||
Net Asset Value, offering and redemption price per share ($) | 1.00 |
See notes to financial statements.
The Fund 19
STATEMENT OF OPERATIONS |
Year Ended May 31, 2008 |
Investment Income ($): | ||
Interest Income | 7,821,189 | |
Expenses: | ||
Management fee—Note 2(a) | 1,215,021 | |
Shareholder servicing costs—Note 2(b) | 212,100 | |
Professional fees | 66,392 | |
Custodian fees—Note 2(b) | 21,607 | |
Trustees’ fees and expenses—Note 2(c) | 20,788 | |
Registration fees | 14,746 | |
Prospectus and shareholders’ reports | 11,628 | |
Miscellaneous | 25,902 | |
Total Expenses | 1,588,184 | |
Less—reduction in fees due to | ||
earnings credits—Note 1(b) | (18,579) | |
Net Expenses | 1,569,605 | |
Investment Income—Net | 6,251,584 | |
Net Realized Gain (Loss) on Investments—Note 1(b) ($) | 15,265 | |
Net Increase in Net Assets Resulting from Operations | 6,266,849 |
See notes to financial statements.
20
STATEMENT OF CHANGES IN NET ASSETS
Year Ended May 31, | ||||
2008 | 2007 | |||
Operations ($): | ||||
Investment income—net | 6,251,584 | 7,240,479 | ||
Net realized gain (loss) on investments | 15,265 | — | ||
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | 6,266,849 | 7,240,479 | ||
Dividends to Shareholders from ($): | ||||
Investment income—net | (6,251,584) | (7,249,966) | ||
Beneficial Interest Transactions ($1.00 per share): | ||||
Net proceeds from shares sold | 343,440,512 | 173,782,523 | ||
Dividends reinvested | 5,998,442 | 7,004,015 | ||
Cost of shares redeemed | (308,322,502) | (236,360,474) | ||
Increase (Decrease) in Net Assets from | ||||
Beneficial Interest Transactions | 41,116,452 | (55,573,936) | ||
Total Increase (Decrease) in Net Assets | 41,131,717 | (55,583,423) | ||
Net Assets ($): | ||||
Beginning of Period | 231,194,873 | 286,778,296 | ||
End of Period | 272,326,590 | 231,194,873 |
See notes to financial statements.
The Fund 21
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.
Year Ended May 31, | ||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||
Per Share Data ($): | ||||||||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||
Investment Operations: | ||||||||||
Investment income—net | .026 | .030 | .022 | .010 | .004 | |||||
Distributions: | ||||||||||
Dividends from investment income—net | (.026) | (.030) | (.022) | (.010) | (.004) | |||||
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||
Total Return (%) | 2.62 | 3.03 | 2.26 | 1.05 | .39 | |||||
Ratios/Supplemental Data (%): | ||||||||||
Ratio of total expenses | ||||||||||
to average net assets | .65 | .68 | .66 | .67 | .66 | |||||
Ratio of net expenses | ||||||||||
to average net assets | .65a | .68 | .65 | .66 | .66 | |||||
Ratio of net investment income | ||||||||||
to average net assets | 2.57 | 2.99 | 2.24 | 1.03 | .39 | |||||
Net Assets, end of period ($ x 1,000) | 272,327 | 231,195 | 286,778 | 260,778 | 276,244 |
a Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements. |
22
NOTES TO FINANCIAL STATEMENTS
NOTE 1—Significant Accounting Policies:
Dreyfus New York AMT-Free Municipal Money Market Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified open-end management investment company. The fund’s investment objective is to provide investors with as high a level of current income exempt from federal, New York state and New York city personal income taxes as is consistent with the preservation of capital and the maintenance of liquidity. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge.
At a meeting of the fund’s Board of Trustees held on July 17, 2007, the Board of Trustees approved a proposal, which became effective on January
1, 2008, to change the name of the fund from “Dreyfus New York Tax Exempt Money Market Fund” to “Dreyfus New York AMT-Free Tax Exempt Money Market Fund.” By interim Board action, the Board approved re-naming the fund “Dreyfus New York AMT-Free Municipal Money Market Fund”, which change occurred on January 1, 2008.
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 U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The Fund 23
NOTES TO FINANCIAL STATEMENTS (continued)
The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.
(a) Portfolio valuation: Investments in securities are valued at amortized cost in accordance with Rule 2a-7 of the Act, which has been determined by the Board of Trustees to represent the fair value of the fund’s investments.
The Financial Accounting Standards Board (“FASB”) released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.
(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and recognized on the accrual basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Cost of investments represents amortized cost.
In March 2008, the FASB released Statement of Financial Accounting Standards No. 161 “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements.The application of FAS 161 is required for fiscal years beginning after November 15, 2008 and interim periods
24
within those fiscal years. At this time, management is evaluating the implications of FAS 161 and its impact on the financial statements and the accompanying notes has not yet been determined.
The fund has arrangements with the custodian and cash management banks whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.
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 gains, 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 of 1986, as amended (the “Code”).To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains.
(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 Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.
During the current year, the fund adopted FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recog-
The Fund 25
NOTES TO FINANCIAL STATEMENTS (continued)
nized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. The adoption of FIN 48 had no impact on the operations of the fund for the period ended May 31, 2008.
As of and during the period ended May 31, 2008, the fund did not have any liabilities for any unrecognized tax benefits.The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.
Each of the tax years in the four-year period ended May 31, 2008, remains subject to examination by the Internal Revenue Service and state taxing authorities.
At May 31, 2008, the components of accumulated earnings on a tax basis were substantially the same as for financial reporting purposes.
The tax character of distributions paid to shareholders during the fiscal periods ended May 31, 2008 and May 31, 2007, were all tax exempt income.
At May 31, 2008, 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 the value of the fund’s average daily net assets and is payable monthly. The Agreement provides that if in any full fiscal year the aggregate expenses of the fund, exclusive of taxes, brokerage fees, inter-
26
est on borrowings and extraordinary expenses, exceed 1 1 / 2% of the value of the fund’s average daily net assets, the fund may deduct, from the payments to be made to the Manager or the Manager will bear, such excess expense. During the period ended May 31, 2008, there was no expense reimbursement pursuant to the Agreement.
(b) Under the Shareholder Services Plan, the fund reimburses the Distributor an amount not to exceed an annual rate of .25% 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 May 31, 2008, the fund was charged $138,410 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 May 31, 2008, the fund was charged $50,135 pursuant to the transfer agency agreement.
The fund compensates The Bank of New York, a subsidiary of BNY Mellon and a Dreyfus affiliate, under a cash management agreement for performing cash management services related to fund subscriptions and redemptions. During the period ended May 31, 2008, the fund was charged $4,926 pursuant to the cash management agreement.
Effective July 1 2007, the fund’s custodian, The Bank of New York, became an affiliate of the Manager. Under the fund’s pre-existing custody agreement with The Bank of New York, the fund was charged $21,498 for providing custodial services for the fund for the eleven months ended May 31, 2008. Prior to becoming an affiliate,The Bank of New York was paid $109 for custody services to the fund for the one month ended June 30, 2007.
The Fund 27
NOTES TO FINANCIAL STATEMENTS (continued)
During the period ended May 31, 2008, the fund was charged $5,607 for services performed by the Chief Compliance Officer.
The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $110,809, chief compliance officer fees $2,350 and transfer agency per account fees $9,141.
(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTE 3—Subsequent Event:
Effective July 1, 2008, BNY Mellon has reorganized and consolidated a number of its banking and trust company subsidiaries. As a result of the reorganization, any services previously provided to the fund by Mellon Bank, N.A. or Mellon Trust of New England, N.A. are now provided by The Bank of New York, which has changed its name to The Bank of New York Mellon.
28
REPORT OF INDEPENDENT REGISTERED |
PUBLIC ACCOUNTING FIRM |
Shareholders and Board of Trustees |
Dreyfus New York AMT-Free Municipal Money Market Fund |
We have audited the accompanying statement of assets and liabilities of Dreyfus New York AMT-Free Municipal Money Market Fund (formerly Dreyfus New York Tax Exempt Money Market Fund), including the statement of investments, as of May 31, 2008, 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 the standards of the Public Company Accounting Oversight Board (United States).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.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of May 31, 2008 by correspondence with the custodian and others.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 New York AMT-Free Municipal Money Market Fund at May 31, 2008, 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 U.S. generally accepted accounting principles.
New York, New York |
July 18, 2008 |
The Fund 29
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during the fiscal year ended May 31, 2008 as “exempt-interest dividends” (not subject to regular federal and, for individuals who are New York residents, New York State and New York City personal income taxes). As required by federal tax law rules, shareholders will receive notification of their portion of the fund’s exempt-interest dividends paid for the 2008 calendar year on Form 1099-INT, which will be mailed by January 31, 2009.
30
BOARD MEMBERS INFORMATION (Unaudited)
Joseph S. DiMartino (64) |
Chairman of the Board (1995) |
Principal Occupation During Past 5 Years: |
• Corporate Director and Trustee |
Other Board Memberships and Affiliations: |
• The Muscular Dystrophy Association, Director |
• Century Business Services, Inc., a provider of outsourcing functions for small and medium size |
companies, Director |
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard |
mills and paperboard converting plants, Director |
• Sunair Services Corporation, a provider of certain outdoor-related services to homes and |
businesses, Director |
No. of Portfolios for which Board Member Serves: 160 |
David W. Burke (72) |
Board Member (1994) |
Principal Occupation During Past 5 Years: |
• Corporate Director and Trustee. |
Other Board Memberships and Affiliations: |
• John F. Kennedy Library Foundation, Director |
No. of Portfolios for which Board Member Serves: 85 |
William Hodding Carter III (73) |
Board Member (2006) |
Principal Occupation During Past 5 Years: |
• Professor of Leadership & Public Policy, University of North Carolina, Chapel Hill |
(January 1, 2006-present) |
• President and Chief Executive Officer of the John S. and James L. Knight Foundation |
(February 1, 1998-February 1, 2006) |
Other Board Memberships and Affiliations: |
• The Century Foundation, a tax-exempt research foundation, Emeritus Director |
• The Enterprise Corporation of the Delta, a non-profit economic development organization, Director |
No. of Portfolios for which Board Member Serves: 27 |
Gordon J. Davis (66) |
Board Member (1995) |
Principal Occupation During Past 5 Years: |
• Partner in the law firm of Dewey & LeBoeuf LLP |
• President, Lincoln Center for the Performing Arts, Inc. (2001) |
Other Board Memberships and Affiliations: |
• Consolidated Edison, Inc., a utility company, Director |
• Phoenix Companies, Inc., a life insurance company, Director |
• Board Member/Trustee for several not-for-profit groups |
No. of Portfolios for which Board Member Serves: 36 |
The Fund 31
BOARD MEMBERS INFORMATION (Unaudited) (continued)
Joni Evans (66) |
Board Member (1987) |
Principal Occupation During Past 5 Years: |
• Chief Executive Officer, www.wowowow.com, an online community dedicated to women’s |
conversation and publications |
• Principal, Joni Evans Ltd. |
• Senior Vice President of the William Morris Agency (2005) |
No. of Portfolios for which Board Member Serves: 27 |
Ehud Houminer (67) |
Board Member (2006) |
Principal Occupation During Past 5 Years: |
• Executive-in-Residence at the Columbia Business School, Columbia University |
Other Board Memberships and Affiliations: |
• Avnet Inc., an electronics distributor, Director |
• International Advisory Board to the MBA Program School of Management, Ben Gurion |
University, Chairman |
No. of Portfolios for which Board Member Serves: 66 |
Richard C. Leone (68) |
Board Member (2006) |
Principal Occupation During Past 5 Years: |
• President of The Century Foundation (formerly,The Twentieth Century Fund, Inc.), a tax |
exempt research foundation engaged in the study of economic, foreign policy and domestic issues |
Other Board Memberships and Affiliations: |
• The American Prospect, Director |
• Center for American Progress, Director |
No. of Portfolios for which Board Member Serves: 27 |
Hans C. Mautner (70) |
Board Member (2006) |
Principal Occupation During Past 5 Years: |
• President—International Division and an Advisory Director of Simon Property Group, a real |
estate investment company (1998-present) |
• Director and Vice Chairman of Simon Property Group (1998-2003) |
• Chairman and Chief Executive Officer of Simon Global Limited (1999-present) |
Other Board Memberships and Affiliations: |
• Capital and Regional PLC, a British co-investing real estate asset manager, Director |
• Member, Advisory Board, Lehman Brothers European Real Estate Private Equity Fund |
No. of Portfolios for which Board Member Serves: 27 |
32
Robin A. Melvin (44) |
Board Member (2006) |
Principal Occupation During Past 5 Years: |
• Director, Boisi Family Foundation, a private family foundation that supports youth-serving |
organizations that promote the self sufficiency of youth from disadvantaged circumstances |
• Senior Vice President, Mentor, a national non-profit youth mentoring organization (2005) |
No. of Portfolios for which Board Member Serves: 27 |
Burton N. Wallack (57) |
Board Member (1991) |
Principal Occupation During Past 5 Years: |
• President and co-owner of Wallack Management Company, a real estate management company |
No. of Portfolios for which Board Member Serves: 27 |
John E. Zuccotti (70) |
Board Member (2006) |
Principal Occupation During Past 5 Years: |
• Chairman of Brookfield Financial Properties, Inc. |
• Senior Counsel of Weil, Gotshal & Manges, LLP |
• Emeritus Chairman of the Real Estate Board of New York |
Other Board Memberships and Affiliations: |
• Emigrant Savings Bank, Director |
• Wellpoint, Inc., Director |
• Columbia University,Trustee |
• Doris Duke Charitable Foundation,Trustee |
No. of Portfolios for which Board Member Serves: 27 |
Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.
Arnold S. Hiatt, Emeritus Board Member
The Fund 33
OFFICERS OF THE FUND (Unaudited)
J. DAVID OFFICER, President since December 2006.
Chief Operating Officer,Vice Chairman and a Director of the Manager, and an officer of 76 investment companies (comprised of 160 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since April 1998.
PHILLIP N. MAISANO, Executive Vice President since July 2007.
Chief Investment Officer,Vice Chair and a director of the Manager, and an officer of 76 investment companies (comprised of 160 portfolios) managed by the Manager. Mr. Maisano also is an officer and/or Board member of certain other investment management subsidiaries of The Bank of New York Mellon Corporation, each of which is an affiliate of the Manager. He is 61 years old and has been an employee of the Manager since November 2006. Prior to joining the Manager, Mr. Maisano served as Chairman and Chief Executive Officer of EACM Advisors, an affiliate of the Manager, since August 2004, and served as Chief Executive Officer of Evaluation Associates, a leading institutional investment consulting firm, from 1988 until 2004.
MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since October 1991.
JAMES BITETTO, Vice President and Assistant Secretary since August 2005.
Associate General Counsel and Secretary of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since December 1996.
JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. She is 52 years old and has been an employee of the Manager since October 1988.
JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 46 years old and has been an employee of the Manager since June 2000.
JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. She is 45 years old and has been an employee of the Manager since February 1984.
JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since February 1991.
ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 56 years old and has been an employee of the Manager since May 1986.
34
JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since October 1990.
JAMES WINDELS, Treasurer since November 2001.
Director – Mutual Fund Accounting of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since April 1985.
RICHARD CASSARO, Assistant Treasurer since September 2007.
Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since September 1982.
GAVIN C. REILLY, Assistant Treasurer since December 2005.
Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since April 1991.
ROBERT ROBOL, Assistant Treasurer since August 2003.
Senior Accounting Manager – Fixed Income Funds of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since October 1988.
ROBERT SALVIOLO, Assistant Treasurer since May 2007.
Senior Accounting Manager – Equity Funds of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since June 1989.
ROBERT SVAGNA, Assistant Treasurer since August 2005.
Senior Accounting Manager – Equity Funds of the Manager, and an officer of 77 investment companies (comprised of 177 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since November 1990.
JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.
Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (77 investment companies, comprised of 177 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 51 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.
WILLIAM GERMENIS, Anti-Money Laundering Compliance Officer since October 2002.
Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 73 investment companies (comprised of 173 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Distributor since October 1998.
The Fund 35
NOTES
Item 2. | Code of Ethics. |
The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.
Item 3. | Audit Committee Financial Expert. |
The Registrant's Board has determined that Joseph S. DiMartino, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Joseph S. DiMartino is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.
Item 4. | Principal Accountant Fees and Services. |
(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $36,484 in 2007 and $37,578 in 2008.
(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2007 and $0 in 2008.
The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2007 and $0 in 2008.
Note: For the second paragraph in each of (b) through (d) of this Item 4, certain of such services were not pre-approved prior to May 6, 2003, when such services were required to be pre-approved. On and after May 6, 2003, 100% of all services provided by the Auditor were pre-approved as required. For comparative purposes, the fees shown assume that all such services were pre-approved, including services that were not pre-approved prior to the compliance date of the pre-approval requirement.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice, and tax planning ("Tax Services") were $3,262 in 2007 and $2,514 in 2008. These services consisted of: (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments; (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.
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The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates, which required pre-approval by the Audit Committee were $0 in 2007 and $0 in 2008.
(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $166 in 2007 and $88 in 2008. [These services consisted of a review of the Registrant's anti-money laundering program].
The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee, were $0 in 2007 and $0 in 2008.
Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.
Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $1,302,603 in 2007 and $2,596,025 in 2008.
Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence.
Item 5. | Audit Committee of Listed Registrants. | |
Not applicable. [CLOSED-END FUNDS ONLY] | ||
Item 6. | Investments. | |
(a) | Not applicable. | |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management | |
Investment Companies. | ||
Not applicable. [CLOSED-END FUNDS ONLY] | ||
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. | |
Not applicable. [CLOSED-END FUNDS ONLY, beginning with reports for periods ended | ||
on and after December 31, 2005] | ||
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Companies and | |
Affiliated Purchasers. | ||
Not applicable. [CLOSED-END FUNDS ONLY] | ||
Item 10. | Submission of Matters to a Vote of Security Holders. |
The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The
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Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders. Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.
Item 11. | Controls and Procedures. |
(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12. | Exhibits. |
(a)(1) Code of ethics referred to in Item 2.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
DREYFUS NEW YORK AMT-FREE MUNICIPAL MONEY MARKET FUND
By: | /s/ J. David Officer | |
J. David Officer, | ||
President | ||
Date: | July 23, 2008 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ J. David Officer | |
J. David Officer, | ||
President | ||
Date: | July 23, 2008 |
By: | /s/ James Windels | |
James Windels, | ||
Treasurer | ||
Date: | July 23, 2008 |
EXHIBIT INDEX
(a)(1) Code of ethics referred to in Item 2.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)
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