General Money
Market Fund, Inc.
ANNUAL REPORT November 30, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. In addition, issuers of securities in
which the fund invests may be adversely affected by year 2000-related problems.
This could have an impact on the value of the fund's investments and its share
price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
16 Notes to Financial Statements
21 Report of Independent Auditors
FOR MORE INFORMATION
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Back Cover
The Fund
General Money Market Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for General Money Market Fund,
Inc., covering the 12-month period from December 1, 1998 through November 30,
1999. 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, Bernard W. Kiernan, Jr.
When the reporting period began, the Federal Reserve Board had just completed a
series of short-term interest-rate cuts in an attempt to stimulate economic
growth after the spread of a global financial crisis in overseas markets. Its
strategy apparently worked, because signs of renewed economic strength in the
U.S. and abroad became evident early in 1999, fueling fears that inflationary
pressures might re-emerge.
As a result, after remaining relatively steady during the first quarter of 1999,
yields on money market securities rose in response to expectations that the
Federal Reserve Board might raise short-term interest rates. In fact, the
Federal Reserve Board raised rates three times during the summer and fall of
1999 in an attempt to forestall a potential resurgence of inflation.
We appreciate your confidence over the past year, and we look forward to your
continued participation in General Money Market Fund, Inc.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
December 15, 1999
2
DISCUSSION OF FUND PERFORMANCE
Bernard W. Kiernan, Jr., Portfolio Manager
How did General Money Market Fund, Inc. perform during the period?
For the 12-month period ended November 30, 1999, the fund produced a yield of
4.44% for Class A shares and 4.24% for Class B shares, which, taking into
account the effect of compounding, created an effective yield of 4.54% for Class
A shares and 4.32% for Class B shares.(1) For the period from their June 1, 1999
inception to November 30, 1999, the fund's Class X shares produced an annualized
yield of 4.29% and an annualized effective yield of 4.37% .(1)
What factors influenced the fund's performance?
For the U.S. economy, economic uncertainty and fear, largely a result of the
Asian financial crisis and Russian default, marked the beginning of the
reporting period. The Federal Reserve Board, in an attempt to cushion the United
States economy from negative overseas events, sharply lowered short-term
interest rates.
Global markets remained unsettled as 1999 began. However, despite continued
concerns regarding Japanese economic reform and devaluation of the Russian
ruble, the general atmosphere of crisis eased, and the focus of U.S. monetary
policy makers shifted back to the domestic economy. As concern over the effects
of offshore events faded, the Fed began to voice concern over inflationary
pressures.
The performance of the U.S. economy in the first quarter of 1999 was much
stronger than expected. Even though the Gross Domestic Product (GDP) grew at a
rate of 4.3%, inflation was benign. Despite a tight labor market, there was no
evidence of advancing wage pressure. Many economic analysts believed that
advances in technology would make it possible for the economy to grow at rates
faster than previously thought possible without igniting inflation. Despite
concern that
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
imbalances in the economy might eventually derail the nine-year economic
expansion, the U.S. economy continued to grow and the Fed held steady on
short-term interest rates.
A surprisingly large jump in the Consumer Price Index in May pushed policy
makers closer to a rate hike. Although the Fed did not immediately raise
interest rates, it did announce a significant shift, adopting a "bias" towards
tightening -- that is, raising short-term rates. With that shift in bias came a
resulting change in market psychology. Market participants began to anticipate a
move by the Fed to higher rates.
That move came in June, when at its Open Market Committee meeting, the Fed
raised short-term rates by 0.25%. At the same time, however, it announced that
it was shifting its bias back to neutral -- indicating no intention of an
immediate rate increase. The market hoped that this pre-emptive strike to head
off the threat of inflation would signal an end to Fed tightening.
Such hopes would be short-lived, however, as strong economic growth along with
rising wages and benefits renewed inflationary concerns. At its August Open
Market Committee meeting, the Fed raised the federal funds rate by an additional
0.25% , and signaled its added resolve by raising the discount rate by 0.25%.
Although second quarter GDP growth dropped to a seemingly more sustainable, less
inflationary 1.9% , the effects of the two short-term rate hikes have yet to
fully impact the performance of the economy.
As the fund' s fiscal year ended, the economy continued to send mixed signals.
Third quarter GDP growth accelerated to a rapid 4.8%, yet key indicators of
employment costs, job creation and inflation were at lower levels than would be
expected, given such economic strength. A continued fear of inflationary
pressure led the Fed to institute a third rate hike in November. The Fed's main
concern continues to be the tightness of the U.S. labor market. At the end of
the fund' s fiscal year, there appeared to be no imminent threat of inflation.
The question remains, however, how long the economy can sustain its current rate
of growth without igniting unfavorable inflationary pressure.
4
What is the fund's current strategy?
The shift in market psychology towards rising rates had a negative influence on
money market performance. The stock market showed increased volatility, and such
volatility often spilled over into the Treasury bond and money markets. Currency
market volatility impacted the performance of dollar-denominated fixed-income
securities. During the period there was also the occasional "flight to quality"
when credit concerns lead investors to seek out bonds and money market
instruments of only the highest quality issuers.
In response, your fund has taken on a somewhat defensive strategy, shortening
the average maturity of our investments and building a liquidity cushion. This
higher level of cash should aid in protecting the fund from potential future
volatility, as well as position the fund to benefit should interest rates rise
in the near future.
December 15, 1999
(1) 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 ANY OTHER
GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND. YIELD FIGURES PROVIDED FOR CLASS B AND CLASS X SHARES REFLECT THE
ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN
UNDERTAKING IN EFFECT THAT MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME.
HAD THESE EXPENSES NOT BEEN ABSORBED, THE FUND'S CLASS B AND CLASS X YIELDS
WOULD HAVE BEEN LOWER. WITHOUT THE EXPENSE ABSORPTION, THE FUND'S CLASS B SHARES
WOULD HAVE PRODUCED A YIELD OF 4.21% AND AN EFFECTIVE YIELD OF 4.30%, AND THE
FUND'S CLASS X SHARES WOULD HAVE PRODUCED AN ANNUALIZED YIELD OF 4.16% AND AN
ANNUALIZED EFFECTIVE YIELD OF 4.25%.
The Fund 5
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
November 30, 1999
Principal
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT--39.0% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Abbey National PLC (Yankee)
<S> <C> <C>
5.20%, 12/9/1999 50,000,000 50,000,000
ABN-AMRO Bank Chicago (Yankee)
5.69%, 4/24/2000 100,000,000 (a) 99,976,764
Banco Santander
6.00%, 2/2/2000 50,000,000 50,007,238
Bank Austria AG (Yankee)
5.42%, 5/22/2000 50,000,000 49,987,477
Bank of Scotland (Yankee)
6.00%, 2/2/2000 40,000,000 40,004,412
Barclays Bank PLC (Yankee)
5.69%, 4/10/2000 50,000,000 (a) 49,991,076
Canadian Imperial Bank of Commerce (Yankee)
5.03%, 1/27/2000 50,000,000 49,997,740
Commerzbank AG (Yankee)
5.18%-5.29%, 3/1/2000-5/12/2000 175,000,000 174,982,943
Credit Suisse (Yankee)
5.72%, 6/12/2000 150,000,000 (a) 150,000,000
Crestar Bank (Yankee)
5.75%, 1/19/2000 50,000,000 (a) 50,000,000
Deutsche Bank AG (Yankee)
5.01%-5.70%, 1/6/2000-4/10/2000 175,000,000 (a) 174,979,829
Internationale Nederlanden (U.S.) Funding Corp. (Yankee)
5.91%, 3/20/2000 25,000,000 25,000,749
Istituto Bancario San Paolo Di Torino (Yankee)
5.15%-6.08%, 1/7/2000-5/16/2000 130,000,000 129,989,889
Morgan Guaranty Trust Co. (Yankee)
5.42%, 12/20/1999 100,000,000 100,000,000
Royal Bank of Canada (Yankee)
5.69%, 4/27/2000-5/4/2000 100,000,000 (a) 99,979,304
Societe Generale (Yankee)
5.03%-5.25%, 1/14/2000-3/15/2000 110,000,000 109,990,943
Svenska Handelsbanken NY (Yankee)
5.14%, 3/20/00 50,000,000 49,997,107
Toronto Dominion Bank (Yankee)
5.14%-5.69%, 2/22/2000-4/10/2000 75,000,000 (a) 74,988,886
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $1,529,874,357) 1,529,874,357
6
Principal
COMMERCIAL PAPER--23.0% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Atlantis One Funding
5.92%-5.96%, 2/18/2000-3/24/2000 47,814,000 47,148,785
DaimlerChrysler North America Holding Corp.
6.07%, 4/28/2000 50,000,000 48,781,097
Den Norske Bank ASA
5.86%, 2/25/2000 50,000,000 49,320,361
FINOVA Capital Corp.
6.37%, 4/7/2000 50,000,000 50,000,000
General Electric Capital Corp.
5.58%-6.08%, 1/27/2000-2/25/2000 175,000,000 173,106,646
Heller Financial Inc.
5.52%-6.22%, 12/7/1999-2/25/2000 85,000,000 84,571,787
HSBC Bank USA, Inc.
5.99%, 8/15/2000 25,000,000 23,973,375
Lehman Brothers Holdings Inc.
6.20%, 3/8/2000 75,000,000 73,772,958
Morgan (J.P.) & Co.
5.61%, 3/13/2000 50,000,000 49,228,931
Prudential Funding Corp.
5.63%, 12/1/1999 100,000,000 100,000,000
Salomon Smith Barney Holdings Inc.
5.92%-5.93%, 2/15/2000-3/14/2000 100,000,000 98,561,444
Santander Finance (DE) Inc.
5.43%-5.94%, 12/16/1999-3/22/2000 99,000,000 97,984,456
Spintab AB
6.00%, 3/9/2000 5,000,000 4,919,150
TOTAL COMMERCIAL PAPER
(cost $901,368,990) 901,368,990
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BANK NOTES--14.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Bank of Nova Scotia
6.04%, 11/17/2000 100,000,000 99,932,678
Comerica Bank
5.69%, 3/22/2000 50,000,000 (a) 49,994,223
First Tennessee Bank
5.68%, 4/19/2000 75,000,000 (a) 74,988,751
Fleet National Bank
5.76%, 7/13/2000 50,000,000 (a) 49,985,246
The Fund 7
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
BANK NOTES (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Key Bank N.A.
5.83%, 5/15/2000 100,000,000 (a) 100,000,000
LaSalle National Bank
5.15%, 2/22/2000 25,000,000 24,998,084
NationsBank N.A.
5.00%, 1/5/2000 10,000,000 10,000,000
Old Kent Bank & Trust Co.
5.70%, 5/3/2000 100,000,000 (a) 99,979,804
Union Bank California
6.00%, 8/11/2000 50,000,000 50,000,000
TOTAL BANK NOTES
(cost $559,878,786) 559,878,786
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CORPORATE NOTES--11.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Corp.
5.70%, 5/5/2000 60,000,000 (a) 60,000,000
GTE Corporation
5.61%, 6/12/2000 180,000,000 (a) 179,938,580
Heller Financial Inc.
5.52%-5.90%, 3/21/2000-8/7/2000 98,000,000 (a) 98,001,583
Lehman Brothers Holdings Inc.
5.68%, 3/1/2000 10,000,000 (a) 9,998,817
Paine Webber Group Inc.
5.63%-6.40%, 3/2/2000-10/20/2000 119,500,000 (a) 119,500,000
TOTAL CORPORATE NOTES
(cost $467,438,980) 467,438,980
- ------------------------------------------------------------------------------------------------------------------------------------
PROMISSORY NOTES--4.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group L.P.
5.58%-6.25%, 1/18/2000-5/2/2000
(cost $187,000,000) 187,000,000 (b,c) 187,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS--.6%
- ------------------------------------------------------------------------------------------------------------------------------------
4.35%, 1/6/2000
(cost $24,895,750) 25,000,000 24,895,750
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--1.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association, Floating Rate Notes
5.58%, 12/1/1999
(cost $50,000,000) 50,000,000 (a) 50,000,000
8
Principal
TIME DEPOSITS--4.0% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Bayerische Hypo-Und Vereinsbank AG (Grand Cayman)
5.75%, 12/1/1999 75,000,000 75,000,000
First Union National Bank (Nassau)
5.56%, 12/1/1999 50,000,000 50,000,000
Republic National Bank of New York (London)
5.44%, 12/1/1999 30,000,000 30,000,000
TOTAL TIME DEPOSITS
(cost $155,000,000) 155,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $3,875,456,863) 98.8% 3,875,456,863
CASH AND RECEIVABLES (NET) 1.2% 45,921,731
NET ASSETS 100.0% 3,921,378,594
A VARIABLE INTEREST RATE--SUBJECT TO PERIODIC CHANGE.
B THESE NOTES WERE ACQUIRED FOR INVESTMENT, NOT WITH INTENT TO DISTRIBUTE OR SELL.
</TABLE>
C SECURITIES RESTRICTED AS TO PUBLIC RESALE. THESE SECURITIES WERE ACQUIRED
FROM 7/21/99-11/4/99 AT A COST OF PAR VALUE. AT NOVEMBER 30, 1999, THE
AGGREGATE VALUE OF THESE SECURITIES IS $187 MILLION REPRESENTING
APPROXIMATELY 4.77% OF NET ASSETS AND ARE VALUED AT AMORTIZED COST.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 9
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 3,875,456,863 3,875,456,863
Cash 5,722,129
Interest receivable 43,348,686
Prepaid expenses 89,602
3,924,617,280
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 1,539,741
Due to Distributor 1,367,684
Accrued expenses 331,261
3,238,686
- --------------------------------------------------------------------------------
NET ASSETS ($) 3,921,378,594
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 3,921,462,803
Accumulated net realized gain (loss) on investments (84,209)
- --------------------------------------------------------------------------------
NET ASSETS ($) 3,921,378,594
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
Class A Class B Class X
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Assets ($) 863,980,511 3,056,843,869 554,214
Shares Outstanding 864,034,945 3,056,873,644 554,214
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 1.00 1.00 1.00
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
STATEMENT OF OPERATIONS
Year Ended November 30, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 187,596,908
EXPENSES:
Management fee--Note 2(a) 17,915,496
Shareholder servicing costs--Note 2(c) 8,814,607
Distribution fees--Note 2(b) 7,166,264
Registration fees 458,803
Custodian fees 157,822
Prospectus and shareholders' reports 116,788
Professional fees 74,233
Directors' fees and expenses--Note 2(d) 35,906
Miscellaneous 36,563
TOTAL EXPENSES 34,776,482
Less-reduction in shareholder servicing costs
due to undertaking--Note 2(c) (929,591)
NET EXPENSES 33,846,891
INVESTMENT INCOME--NET 153,750,017
- --------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($): (15,759)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 153,734,258
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 11
STATEMENT OF CHANGES IN NET ASSETS
Year Ended November 30,
------------------------------------
1999(a) 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 153,750,017 125,073,830
Net realized gain (loss) on investments (15,759) 36,653
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 153,734,258 125,110,483
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A Shares (38,585,389) (42,077,699)
Class B Shares (115,159,335) (82,996,131)
Class X Shares (5,293) --
TOTAL DIVIDENDS (153,750,017) (125,073,830)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A Shares 6,026,790,463 5,634,804,053
Class B Shares 8,362,763,082 6,698,310,567
Class X Shares 1,015,928 --
Dividends reinvested:
Class A Shares 37,933,080 41,121,880
Class B Shares 112,244,553 80,819,334
Class X Shares 2,006 --
Cost of shares redeemed:
Class A Shares (6,036,445,295) (5,743,540,176)
Class B Shares (7,845,483,988) (5,582,959,197)
Class X Shares (463,720) --
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 658,356,109 1,128,556,461
TOTAL INCREASE (DECREASE) IN NET ASSETS 658,340,350 1,128,593,114
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 3,263,038,244 2,134,445,130
END OF PERIOD 3,921,378,594 3,263,038,244
A FROM JUNE 1, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1999
FOR CLASS X SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information reflects financial results for a
single fund share. 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.
Ten Months Ended
Year Ended November 30, November 30, Year Ended January 31,
----------------------------------------------------------------------------------------
CLASS A SHARES 1999 1998 1997(a) 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .044 .049 .041 .047 .053 .037
Distributions:
Dividends from investment
income--net (.044) (.049) (.041) (.047) (.053) (.037)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 4.53 4.98 4.99(b) 4.81 5.42 3.75
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/
SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .78 .77 .88(b) .84 .86 .94
Ratio of net investment income
to average net assets 4.44 4.88 4.89(b) 4.71 5.28 3.68
Decrease reflected in above
expense ratios due to
undertakings by the Manager -- -- -- -- .01 .04
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($x1,000) 863,981 835,706 903,313 764,119 654,581 572,116
(A) THE FUND CHANGED ITS FISCAL YEAR END FROM JANUARY 31 TO NOVEMBER 30.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 13
FINANCIAL HIGHLIGHTS (continued)
Ten Months Ended
Year Ended November 30, November 30, Year Ended January 31,
------------------------------------------------------------------------------------------
CLASS B SHARES 1999 1998 1997(a) 1997 1996(b)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
investment income--net .042 .047 .039 .046 .043
Distributions:
Dividends from investment
income--net (.042) (.047) (.039) (.046) (.043)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 4.32 4.78 4.83(c) 4.65 5.18(c)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/
SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets 1.00 1.00 1.00(c) 1.00 1.00(c)
Ratio of net investment income
to average net assets 4.24 4.66 4.78(c) 4.56 5.00(c)
Decrease reflected in above
expense ratios due to
undertakings by the Manager .03 .06 .05(c) .07 .07(c)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of
period ($x1,000) 3,056,844 2,427,332 1,231,132 369,205 50,446
(A) THE FUND CHANGED ITS FISCAL YEAR END FROM JANUARY 31 TO NOVEMBER 30.
(B) FROM MARCH 31, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO JANUARY 31, 1996.
(C) ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
Year Ended
CLASS X SHARES November 30, 1999(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00
Investment Operations:
Investment income--net .021
Distributions:
Dividends from investment income--net (.021)
Net asset value, end of period 1.00
- --------------------------------------------------------------------------------
TOTAL RETURN (%) 4.33(b)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.05(b)
Ratio of net investment income
to average net assets 4.01(b)
Decrease reflected in above expense ratios
due to undertakings by the Manager .25(b)
- --------------------------------------------------------------------------------
Net Assets, end of period ($x1,000) 554
(A) FROM JUNE 1, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1999.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 15
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
General Money Market Fund, 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 direct subsidiary of Mellon Bank,
N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation.
On April 14, 1999, the Board of Directors approved the addition of Class X
shares which became effective June 1, 1999.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund' s shares, which are sold to the public without a sales charge. The fund is
authorized to issue 25.5 billion shares of $.001 par value Common Stock. The
fund currently offers three classes of shares: Class A (15 billion shares
authorized) , Class B (10 billion shares authorized) and Class X (500 million
shares authorized). Class A, Class B and Class X shares are identical except for
the services offered to and the expenses borne by each class and certain voting
rights. Class A shares are subject to a Service Plan adopted pursuant to Rule
12b-1 under the Act, Class B and Class X shares are subject to a Distribution
Plan adopted pursuant to Rule 12b-1 under the Act and Class X shares are subject
to a Shareholder Services Plan. In addition, Class B shares are charged directly
for sub-accounting services provided by Service Agents (a securities dealer
financial institution or other industry professional) at an annual rate of .05%
of the value of the average daily net assets of Class B shares.
It is the fund's policy to maintain a continuous net asset value per share of
$1.00; the fund has adopted certain investment, portfolio valuation and dividend
and distribution policies to enable it to do so. There is no assurance, however,
that the fund will be able to maintain a stable net asset value per share of
$1.00.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
16
(a) Portfolio valuation: Investments are valued at amortized cost, which has
been determined by the fund's Board of Directors to represent the fair value of
the fund's investments.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income is
recognized on the accrual basis. Cost of investments represents amortized cost.
Under the terms of the custody agreement, the fund received net earnings credits
of $5,833 based on available cash balances left on deposit. Income earned under
this arrangement is included in interest income.
The fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the fund' s 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
from investment income-net on each business day; such dividends are paid
monthly. Dividends from net realized capital gain 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.
The Fund 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 approximately $84,000 available
for Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to November 30, 1999. If not applied,
$68,000 of the carryover expires in fiscal 2005 and $16,000 expires in fiscal
2007.
At November 30, 1999, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
NOTE 2--Management Fee and Other Transactions with Affiliates:
(a) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .50 of 1% of the 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, interest on borrowings and extraordinary expenses, exceed
1 1/2% of the value of the fund's average net assets, the fund may deduct from
payments to be made to the Manager, or the Manager will bear such excess
expense. During the period ended November 30, 1999, there was no expense
reimbursement pursuant to the Agreement.
(b) Under the Service Plan with respect to Class A shares (the "Plan"), adopted
pursuant to Rule 12b-1 under the Act, Class A shares directly bear the cost of
preparing, printing and distributing prospectuses and statements of additional
information and implementing and operating the Plan. In addition, Class A shares
reimburse (a) the Distributor for payments made for distributing Class A shares
and servicing shareholder accounts ("Servicing") and (b) the Manager, Dreyfus
Service Corporation, a wholly-owned subsidiary of the Manager, and their
affiliate (collectively, "Dreyfus" ) for payments made for Servicing, at an
18
aggregate annual rate of up to .20 of 1% of the value of the average daily net
assets of Class A. Both the Distributor and Dreyfus may pay Service Agents a fee
in respect of Class A shares owned by shareholders with whom the Service Agent
has a Servicing relationship or for whom the Service Agent is the dealer or
holder of record. The schedule of such fees and the basis upon which such fees
will be paid shall be determined from time to time by the fund's Board of
Directors. If a holder of Class A shares ceases to be a client of a Service
Agent, but continues to hold Class A shares, Dreyfus will be permitted to act as
a Service Agent in respect of such fund shareholders and receive payments under
the Service Plan for Servicing. The fees payable for Servicing are payable
without regard to actual expenses incurred. During the period ended November 30,
1999, Class A shares were charged $1,736,520 pursuant to the Plan.
Under the Distribution Plan with respect to Class B shares and Class X shares
("Class B and Class X Distribution Plans"), adopted pursuant to Rule 12b-1 under
the Act, Class B and Class X shares directly bear the costs of preparing,
printing and distributing prospectuses and statements of additional information
and of implementing and operating the Class B and Class X Distribution Plans. In
addition, Class B and Class X shares reimburse the Distributor for payments made
to third parties for distributing their shares at an aggregate annual rate of up
to .20 of 1% and .25 of 1%, respectively, of the value of the average daily net
assets of Class B and Class X. During the period ended November 30, 1999, Class
B and Class X shares were charged $5,429,414 and $330, respectively, pursuant to
the Class B and Class X Distribution Plans.
(c) Under the Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan" ), Class A shares reimburse Dreyfus Service
Corporation, an amount not to exceed an annual rate of .25 of 1% of the value of
the fund's average daily net assets of Class A 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 Class A shares and
providing reports and other information, and services related to the maintenance
of shareholder accounts. During
The Fund 19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the period ended November 30, 1999, Class A shares were charged $362,654
pursuant to the Class A Shareholder Services Plan.
Under the Shareholder Services Plan with respect to Class B and Class X ("Class
B and Class X Shareholder Services Plans"), Class B and Class X shares pay the
Distributor for the provision of certain services to the holders of Class B and
Class X shares a fee at an annual rate of .25 of 1% of the value of their
average daily net assets of Class B and Class X. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding Class B and Class X shares and providing reports
and other information, and services related to the maintenance of shareholder
accounts. The Distributor may make payments to Service Agents in respect of
these services. The Distributor determines the amounts to be paid to Service
Agents.
The Manager had undertaken from December 1, 1998 through November 30, 1999 that
if the aggregate expenses of Class B and Class X shares, exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses, exceeded 1% for
Class B and 1.05% for Class X shares of the value of their average daily net
assets of Class B and Class X, the Manager will reimburse the expenses of the
fund under the Class B and Class X Shareholder Services Plans to the extent of
any excess expense and up to the full fee payable under the Class B and Class X
Shareholder Services Plans. During the period ended November 30, 1999,
$8,144,122 and $330, respectively, were charged pursuant to the Class B and
Class X Shareholder Services Plans, of which $929,261 and $330, respectively,
were reimbursed by the Manager.
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 November 30, 1999, the fund was charged $194,612 pursuant to the transfer
agency agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $2,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
20
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
General Money Market Fund, Inc.
We have audited the accompanying statement of assets and liabilities of General
Money Market Fund, Inc., including the statement of investments, as of November
30, 1999, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended and financial highlights for each of the years indicated therein. These
financial statements and financial highlights are the responsibility of the
fund' s management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of November 30, 1999 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
General Money Market Fund, Inc., at November 30, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the indicated years, in conformity with generally accepted accounting
principles.
[ERNST & YOUNG LLP SIGNATURE LOGO]
New York, New York
January 6, 2000
The Fund 21
For More Information
General Money
Market Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, New York 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
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 [email protected]
ON THE INTERNET Information
can be viewed online or
downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 196AR9911
