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 811-2410
DREYFUS LIQUID ASSETS, INC.
(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)
Mark N. Jacobs, Esq.
200 Park Avenue
New York, New York 10166
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 922-6832
Date of fiscal year end: 12/31
Date of reporting period: 06-30-03
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
Dreyfus
Liquid Assets, Inc.
SEMIANNUAL REPORT June 30, 2003
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
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2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
9 Statement of Assets and Liabilities
10 Statement of Operations
11 Statement of Changes in Net Assets
12 Financial Highlights
13 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus
Liquid Assets, Inc.
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for Dreyfus Liquid Assets, Inc. covers the six-month
period from January 1, 2003, through June 30, 2003. Inside, you'll find valuable
information about how the fund was managed during the reporting period,
including a discussion with the fund's portfolio manager, Patricia A. Larkin.
The first half of 2003 was a challenging year for money market funds. In its
ongoing attempts to stimulate renewed economic growth, the Federal Reserve Board
reduced a key short-term interest rate to just 1% in June, and yields of money
market funds fell to historical lows. As a result, maintaining a steady stream
of current income from investments in money market securities has become a
challenge for many investors.
Nonetheless, we believe that it is important for investors to remember that
money market funds have continued to achieve their objective of preserving
shareholders' capital, although the preservation of capital is not guaranteed.
For emergency reserves and money earmarked for near-term needs, we believe money
market funds can play an important role in creating a diversified portfolio.
However, if you seek to maximize current income from your long-term savings,
your financial advisor may be able to recommend higher-yielding alternatives
that are right for you in today's low interest-rate environment.
Thank you for your continued confidence and support.
Sincerely,
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
July 15, 2003
DISCUSSION OF FUND PERFORMANCE
Patricia A. Larkin, Senior Portfolio Manager
How did Dreyfus Liquid Assets, Inc. perform during the period?
For the six-month period ended June 30, 2003, the fund produced an annualized
yield of 0.72% . Taking into account the effects of compounding, the fund
produced an annualized effective yield of 0.73% for the same period.(1)
The fund' s modest returns are the result of declining interest rates in a
persistently sluggish economy.
What is the fund's investment approach?
The fund seeks as high a level of current income as is consistent with the
preservation of capital. To pursue this goal, the fund invests in a diversified
portfolio of high-quality, short-term debt securities. These include securities
issued or guaranteed by the U.S. government or its agencies or
instrumentalities, certificates of deposit, short-term securities issued by
domestic or foreign branches of U.S. banks, repurchase agreements, asset-backed
securities, commercial paper and other short-term obligations of U.S. issuers.
Normally, the fund invests at least 25% of its net assets in domestic or
dollar-denominated foreign bank obligations.
What other factors influenced the fund's performance?
When the reporting period began, the U.S. economy continued to struggle, as
evidenced by the fourth quarter 2002 GDP annualized growth rate of just 1.4%.
During the first quarter of 2003, the economy sent mixed signals, but hopes of a
more robust economic rebound faded as geopolitical tensions mounted, culminating
in the war in Iraq.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
Fear of war caused many businesses and consumers to postpone their spending
plans, and consumer confidence fell to new lows. On the other hand, home sales
rose, fueled by low mortgage rates, and manufacturing expanded modestly. For its
part, the Federal Reserve Board (the "Fed" ) kept the federal funds rate
unchanged at 1.25%.
In March, the Fed indicated that the uncertainty regarding the war with Iraq was
so great that it could not adequately assess prevailing economic risks. However,
as the conflict progressed, investors became more optimistic and money market
yields rose at the longer end of the curve.
After the war began winding down in April, investors' attention returned to the
weak U.S. economy. The manufacturing sector contracted in April, and the
unemployment rate rose to 6%, suggesting lingering caution among businesses
reluctant to resume hiring and production. In addition, uncertainty remained as
to the prospects for continued spending among consumers, as revised estimates of
U.S. economic growth for the first quarter of 2003 came in at a relatively
disappointing 1.4%.
In May, the economy showed signs of gradual improvement. A key purchasing index
rose significantly over the previous month' s levels, suggesting that the
manufacturing sector may be improving and the worst may be over. Consumer
confidence rebounded to its highest levels in almost a year, indicating that
consumers were becoming increasingly optimistic about the future. These
encouraging signs were supported by other potentially constructive factors,
including gains in the stock market, low inflation, declining oil prices, rising
productivity and pending tax cuts. However, at its meeting in early May, the Fed
adopted a relatively cautious stance, saying that economic risks were "weighted
toward weakness for the foreseeable future."
In June, signs emerged of stronger consumer confidence supported by stronger
existing and new home sales. In addition, the ISM Non-Manufacturing Index rose
more than expected, spurring an improvement in market sentiment. On the other
hand, the unemployment rate rose to 6.4%, its highest level in nine years.
Most investors expected the Fed to reduce interest rates further at its meeting
in late June. The Fed did not disappoint them, cutting rates for the thirteenth
time since January 2001 and driving the federal funds rate down 25 basis points
to 1% . However, because the Fed did not cut rates by 50 basis points as some
investors had expected, money market yields rose in the wake of the Fed's
announcement.
What is the fund's current strategy?
We remain cautious regarding the prospects for a quick pickup in economic
growth. We believe that more solid evidence is required to support a sustainable
rebound in economic activity among consumers and businesses.
Because it has made little sense to us to lock in today's low yields for an
extended period, we have allowed the fund's weighted average maturity to shorten
gradually. Of course, we are prepared to alter our current strategy should
economic data necessitate a change.
July 15, 2003
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
YIELDS FLUCTUATE. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY
THE FDIC OR THE U.S. GOVERNMENT. ALTHOUGH THE FUND SEEKS TO PRESERVE THE
VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY
BY INVESTING IN THE FUND.
The Fund
STATEMENT OF INVESTMENTS
June 30, 2003 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT--21.2% Amount ($) Value ($)
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American Express Centurion Bank
1.25%, 7/2/2003 150,000,000 150,000,000
Citibank N.A.
1.00%, 9/10/2003 58,000,000 58,012,541
First Tennessee Bank N.A.
1.21%, 7/31/2003 150,000,000 150,000,000
Harris Trust & Savings Bank
2.07%, 8/19/2003 75,000,000 74,999,002
M&I Marshall & Ilsley Bank Milwaukee,WI
1.05%, 1/30/2004 200,000,000 (a) 200,000,000
U.S. Bank N.A.
2.00%, 8/22/2003 100,000,000 100,000,000
Wachovia Bank, N.A.
1.05%, 10/20/2003 150,000,000 (a) 150,000,000
Wilmington Trust Co.
1.01%--1.50%, 9/10/2003--11/12/2003 265,000,000 265,010,419
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $1,148,021,962) 1,148,021,962
COMMERCIAL PAPER--37.0%
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Bank of America Corp.
1.23%, 7/10/2003 100,000,000 99,969,250
Barclays U.S. Funding Corp.
.93%, 8/25/2003 100,000,000 99,857,917
Bear Stearns Cos. Inc.
1.20%, 8/22/2003 40,000,000 39,930,667
Bear Stearns Cos. Inc.
1.05%, 1/16/2004 50,000,000 (a) 50,000,000
Canadian Imperial Holdings Inc.
1.20%--1.32%, 7/9/2003--8/25/2003 150,000,000 149,802,100
Citigroup Global Market Holdings Inc.
1.23%, 7/1/2003 150,000,000 150,000,000
Deutsche Bank Financial LLC Inc.
1.31%, 7/2/2003 250,000,000 249,990,972
FCAR Owner Trust
1.25%, 7/15/2003 110,000,000 109,946,528
General Electric Capital Corp.
1.12%--1.22%, 8/4/2003--10/6/2003 225,000,000 224,600,834
ING America Insurance Holdings Inc.
1.24%, 7/18/2003 50,000,000 49,970,722
Principal
COMMERCIAL PAPER (CONTINUED) Amount ($) Value ($)
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ING (U.S.) Funding LLC
1.30%, 7/14/2003 50,000,000 49,976,708
Lehman Brothers Holdings Inc.
1.06%, 10/17/2003--1/5/2004 135,000,000 135,000,000
Nordea North America Inc.
1.01%, 8/18/2003 150,000,000 149,799,000
Societe Generale N.A. Inc.
1.10%--1.20%, 8/7/2003--10/6/2003 250,000,000 249,602,444
Unicredit (DE) Inc.
1.20%--1.27%, 7/7/2003--7/23/2003 200,000,000 199,922,056
TOTAL COMMERCIAL PAPER
(cost $2,008,369,198) 2,008,369,198
CORPORATE NOTES--4.2%
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General Electric Capital Corp.
1.42%, 10/22/2003 25,000,000 (a) 25,011,628
Lehman Brothers Holdings Inc.
1.12%--1.29%, 8/1/2003--9/12/2003 80,000,000 (a) 80,010,715
Merrill Lynch & Co. Inc.
1.07%, 11/19/2003 50,000,000 (a) 50,011,731
Sigma Finance Inc.
1.09%, 7/25/2003 75,000,000 (a,b) 75,000,000
TOTAL CORPORATE NOTES
(cost $230,034,074) 230,034,074
PROMISSORY NOTES--4.6%
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Goldman Sachs Group Inc.
1.22%--1.95%, 9/16/2003--1/21/2004
(cost $250,000,000) 250,000,000 (c) 250,000,000
SHORT-TERM BANK NOTES--16.2%
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Bank One N.A.
1.05%, 2/24/2004--3/4/2004 250,000,000 (a) 249,983,507
M&I Marshall & Ilsley Bank Milwaukee,WI
1.05%, 3/12/2004 50,000,000 (a) 49,994,733
National City Bank
1.53%--1.60%, 11/21/2003--12/5/2003 125,000,000 125,004,686
National City Bank
1.05%, 9/23/2003 155,000,000 (a) 154,992,866
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
SHORT-TERM BANK NOTES (CONTINUED) Amount ($) Value ($)
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Wells Fargo Bank N.A.
1.05%, 8/13/2003--1/15/2004 300,000,000 (a) 300,001,178
TOTAL SHORT-TERM BANK NOTES
(cost $879,976,970) 879,976,970
U.S. GOVERNMENT AGENCIES--17.3%
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Federal Home Loan Banks, Discount Notes
.95%--1.39%, 7/1/2003--7/14/2004 663,784,000 663,784,000
Federal National Mortgage Association, Discount Notes
1.15%, 7/27/2004 40,000,000 40,000,000
Federal National Mortgage Association,
Floating Rate Notes
1.01%--1.03%, 6/17/2004--1/10/2005 225,000,000 (a) 224,852,890
Student Loan Marketing Association, Discount Notes
.95%, 7/1/2003 7,913,000 7,913,000
TOTAL U.S. GOVERNMENT AGENCIES
(cost $936,549,890) 936,549,890
TIME DEPOSITS--3.7%
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HSBC Bank USA (Grand Cayman)
1.25%, 7/1/2003
(cost $200,000,000) 200,000,000 200,000,000
TOTAL INVESTMENTS (cost $5,652,952,094) 104.2% 5,652,952,094
LIABILITIES, LESS CASH AND RECEIVABLES (4.2%) (230,290,853)
NET ASSETS 100.0% 5,422,661,241
(A) VARIABLE INTEREST RATE--SUBJECT TO PERIODIC CHANGE.
(B) SECURITY EXEMPT FROM REGISTRATION, UNDER RULE 144A OF THE SECURITIES ACT OF
1933. THIS SECUIRITY MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT JUNE 30, 2003,
THIS SECURITY AMOUNTED TO $75,000,000 OR 1.4% OF NET ASSETS.
(C) THESE NOTES WERE ACQUIRED FOR INVESTMENT, AND NOT WITH THE INTENT TO
DISTRIBUTE OR SELL. SECURITIES RESTRICTED AS TO PUBLIC RESALE. THESE
SECURITIES WERE ACQUIRED FROM 9/16/2002 TO 4/29/2003 AT A COST OF
$250,000,000. AT JUNE 30, 2003, THE AGGREGATE VALUE OF THESE SECURITIES WAS
$250,000,000 REPRESENTING 4.6% OF NET ASSETS AND ARE VALUED AT AMORTIZED
COST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 5,652,952,094 5,652,952,094
Cash 4,439,308
Interest receivable 13,642,917
Prepaid expenses 161,058
5,671,195,377
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 3,290,279
Payable for investment securities purchased 214,867,455
Payable for shares of Common Stock redeemed 29,438,835
Accrued expenses 937,567
248,534,136
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NET ASSETS ($) 5,422,661,241
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 5,422,694,482
Accumulated net realized gain (loss) on investments (33,241)
- --------------------------------------------------------------------------------
NET ASSETS ($) 5,422,661,241
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SHARES OUTSTANDING
(25 billion shares of $.001 par value Common Stock authorized) 5,423,569,927
NET ASSET VALUE, offering and redemption price per share ($) 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2003 (Unaudited)
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INVESTMENT INCOME ($):
INTEREST INCOME 40,258,059
EXPENSES:
Management fee--Note 2(a) 13,317,136
Shareholder servicing costs--Note 2(b) 5,697,981
Prospectus and shareholders' reports 185,946
Custodian fees 118,391
Directors' fees and expenses--Note 2(c) 112,860
Registration fees 75,569
Professional fees 34,702
Miscellaneous 41,679
TOTAL EXPENSES 19,584,264
INVESTMENT INCOME--NET, REPRESENTING NET INCREASE
IN NET ASSETS RESULTING FROM OPERATIONS 20,673,795
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 2003 Year Ended
(Unaudited) December 31, 2002
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OPERATIONS ($):
Investment income--net 20,673,795 100,146,887
Net realized gain (loss) from investments -- (24,768)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 20,673,795 100,122,119
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DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (20,673,795) (100,146,887)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold 1,500,708,988 4,654,849,182
Dividends reinvested 8,121,911 35,339,535
Cost of shares redeemed (2,318,784,489) (5,060,883,995)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (809,953,590) (370,695,278)
TOTAL INCREASE (DECREASE) IN NET ASSETS (809,953,590) (370,720,046)
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NET ASSETS ($):
Beginning of Period 6,232,614,831 6,603,334,877
END OF PERIOD 5,422,661,241 6,232,614,831
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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.
Six Months Ended
June 30, 2003 Year Ended December 31,
----------------------------------------------------------------------
(Unaudited) 2002 2001 2000 1999 1998
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PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .004 .015 .039 .057 .045 .049
Distributions:
Dividends from
investment income--net (.004) (.015) (.039) (.057) (.045) (.049)
Net asset value,
end of period 1.00 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) .73(a) 1.47 4.01 5.85 4.59 4.97
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses
to average net assets .69(a) .64 .66 .72 .74 .74
Ratio of net investment
income to average
net assets .73(a) 1.47 3.87 5.73 4.49 4.85
Decrease reflected in above
expense ratios due to
undertakings by The
Dreyfus Corporation -- -- -- -- -- .01
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Net Assets,
end of period
($ x 1,000) 5,422,661 6,232,615 6,603,335 6,027,009 5,399,204 5,384,532
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Liquid Assets, Inc. (the "fund") is registered under the Investment
Company Act of 1940, as amended (the "Act" ), as a diversified open-end
management investment company. The fund's investment objective is to provide
investors with as high a level of current income as is consistent with the
preservation of capital. The Dreyfus Corporation (the "Manager") serves as the
fund' s investment adviser. The Manager is a wholly-owned subsidiary of Mellon
Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Dreyfus Service 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.
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 statements are prepared in accordance with accounting principles
generally accepted in the United States, which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities are valued at amortized cost
in accordance with Rule 2a-7 of the Act, 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,
adjusted for amortization of discount and premium on investment, is earned from
settlement date and recognized on the accrual basis. Cost of investments
represents amortized cost. Under the terms of the custody agreement, the fund
receives net earnings credits based on available cash balances left on deposit.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
The fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the Manager, subject to the seller's agreement to
repurchase and the fund' s agreement to resell such securities at a mutually
agreed upon price. Securities purchased subject to repurchase agreements are
deposited with the fund's custodian and, pursuant to the terms of the repurchase
agreement, must have an aggregate market value greater than or equal to the
repurchase price plus accrued interest at all times. If the value of the
underlying securities falls below the value of the repurchase price plus accrued
interest, the fund will require the seller to deposit additional collateral by
the next business day. If the request for additional collateral is not met, or
the seller defaults on its repurchase obligation, the fund maintains the right
to sell the underlying securities at market value and may claim any resulting
loss against the seller.
(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 of 1986, as amended (the
" 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 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 $39,521 available for federal
income tax purposes to be applied against future net securities profits, if any,
realized subsequent to December 31, 2002. If not applied, $5,642 of the
carryover expires in fiscal 2008, $9,111 expires in fiscal 2009 and $24,768
expires in fiscal 2010.
The tax character of distributions paid to shareholders during the fiscal period
ended December 31, 2002 was all ordinary income. The tax character of current
year distributions will be determined at the end of the current fiscal year.
At June 30, 2003, 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 based on the value of the fund's average daily net assets and
is computed at the following annual rates: 1/2 of 1% of the first $1.5 billion;
48/100ths of 1% of the next $500 million; 47/100ths of 1% of the next $500
million; and 45/100ths of 1% over $2.5 billion. The fee is payable monthly. The
Agreement provides that if in any full fiscal year the aggregate expenses,
exclusive of taxes, brokerage fees, interest on borrowings and extraordinary
expenses, exceed 1% of the value of the fund's average net assets, the Manager
will refund to the fund, or bear, the excess over 1%. During the period ended
June 30, 2003, 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 1% of the value of the fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended June 30, 2003, the fund was charged $2,228,944 pursuant
to the Shareholder Services Plan.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 June 30, 2003, the fund was charged $971,900 pursuant to the transfer
agency agreement.
(C) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Through December 31, 2002,
each Board member who is not an "affiliated person" as defined in the Act,
received an annual fee of $45,000, an attendance fee of $5,000 for each
in-person meeting and $500 for telephone meetings. Effective January 1, 2003,
the number of funds in the Fund Group comprising the fund increased, and the
annual fee was increased to $60,000 while the attendance fee was increased to
$7,500 for each in-person meeting. These fees are allocated among the funds in
the Fund Group in proportion to each fund's relative net assets. The Chairman of
the Board receives an additional 25% of such compensation. Subject to the fund's
Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
For More Information
Dreyfus
Liquid Assets, 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
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to info@dreyfus.com
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2003 Dreyfus Service Corporation 039SA0603
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. 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 controls over
financial reporting that occurred during the Registrant's most recently ended
fiscal half-year that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial
reporting.
ITEM 10. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and principal financial
officers as required by Rule 30a-2(a) under the Investment Company Act of
1940.
(b) Certification of principal executive and principal financial officers
as required by Rule 30a-2(b) under the Investment Company Act of 1940.
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 LIQUID ASSETS, INC.
By: /S/STEPHEN E. CANTER
-----------------------
Stephen E. Canter
Chief Executive Officer
Date: September 3, 2003
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/STEPHEN E. CANTER
-----------------------
Stephen E. Canter
Chief Executive Officer
Date: September 3, 2003
By: /S/JAMES WINDELS
-----------------------
James Windels
Chief Financial Officer
Date: September 3, 2003
EXHIBIT INDEX
(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)