General Money
Market Fund, Inc.
SEMIANNUAL REPORT
May 31, 2000
(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
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
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
15 Notes to Financial Statements
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 semiannual report for General Money Market Fund,
Inc., covering the six-month period from December 1, 1999 through May 31, 2000.
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, international and domestic economies were
growing at a very strong pace, giving rise to concerns that long-dormant
inflationary pressures might reemerge. Consumers continued to spend heavily,
unemployment levels reached new lows and the stock market, while highly
volatile, continued to climb.
Because robust economic growth may trigger unwanted inflationary pressures, the
Federal Reserve Board raised short-term interest rates three times during the
reporting period. In total, the Federal Reserve Board has raised short-term
interest rates by 1.75 percentage points since late June 1999. While these
economic influences overall adversely affected long-term bonds, they positively
influenced money market yields.
We appreciate your confidence over the past six months 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
June 15, 2000
DISCUSSION OF FUND PERFORMANCE
Bernard W. Kiernan, Jr., Portfolio Manager
How did General Money Market Fund, Inc. perform during the period?
For the six-month period ended May 31, 2000, the fund produced an annualized
yield of 5.26% for Class A shares, 5.02% for Class B shares and 4.98% for Class
X shares. Taking into account the effect of compounding, the fund achieved an
annualized effective yield of 5.39% for Class A shares, 5.14% for Class B shares
and 5.09% for Class X shares.(1)
What is the fund's investment approach?
The fund seeks a high level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. 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, certificates of deposit, short-term securities issued by
domestic or foreign banks, repurchase agreements, asset-backed securities,
domestic and dollar-denominated foreign commercial paper and dollar-denominated
obligations issued or guaranteed by foreign governments.
Normally, the fund invests at least 25% of its net assets in domestic or
dollar-denominated foreign bank obligations.
What factors influenced the fund's performance?
When the reporting period began, the Federal Reserve Board (the "Fed") opted to
avoid taking any actions at its December meeting in an apparent attempt to quiet
market concerns of potential Y2K disruptions. In addition, the Fed added
liquidity to the banking system over year-end, leading to temporary fluctuations
in short-term interest rates. Despite this short-lived volatility, very few
significant Y2K problems were reported. With such concerns behind them, the Fed
-- and the market -- turned their attention back to the central question: Would
strong economic growth ignite inflation?
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
After the start of the new year, economic data showed that GDP growth in fourth
quarter 1999 had quickened to a stunning 7.3%. The Fed grew concerned that
economic growth was accelerating past a limit that could be sustained without
triggering destructive levels of inflation. As a result, the Fed raised interest
rates for the fourth time in this cycle of tightening by 0.25 percentage points
in early February and a fifth time in March by 0.25 percentage points.
First quarter 2000 figures showed GDP growth at a less torrid but still strong
5.4%. Continuing indications that prices were moving higher added to the money
market' s concerns and greater than expected domestic demand for goods and
services continued. Events overseas have also impacted the domestic economy.
Following the Asian economic crisis of 1998, demand outside the U.S. weakened,
enabling the U.S. economy to grow at an unusually fast pace without setting off
inflation. As overseas economies recovered, demand for raw materials picked up
as well, putting upward pressure on prices.
In the face of gradual and relatively mild interest-rate hikes, consumer
confidence and consumer demand showed few signs of abating. Home and auto sales
continued at record paces into the second quarter of 2000. The tightest labor
market the U.S. has seen in the past 30 years added the threat of wage-driven
inflationary pressure. Such factors led the Fed to its largest interest-rate
hike in the current cycle of credit tightening: a 0.50 percentage-point increase
at its May 16th meeting.
There are signs that the Fed' s series of rate hikes has begun to slow the
economy. Retail sales declined in both April and May, housing starts have slowed
dramatically and inflation figures have been lower than market expectations. But
economic signals remained contradictory. Market participants seemed to believe
that not enough evidence about the economy's direction will be in place by the
Fed' s June 28th meeting to warrant further tightening. More market data will be
available as the August meeting approaches and that in turn may influence future
changes in the Fed's monetary policy.
4
What is the fund's current strategy?
In anticipation of rising interest rates throughout the six-month reporting
period, the fund adopted a somewhat defensive strategy. Most significantly, we
reduced the fund' s average maturity in order to increase our flexibility.
Shorter maturities were designed to help the fund take advantage of any
potential opportunities from any additional interest-rate increases, as well as
to protect the fund from potential volatility.
As of May 31, 2000, the fund's average maturity remained relatively short. We
will continue to monitor the situation, including the economy and changes in the
Fed' s monetary policy, and we will look to take what we believe are appropriate
actions in response with respect to the fund's portfolio, including its average
portfolio maturity.
June 15, 2000
(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 $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND. YIELDS PROVIDED FOR THE FUND'S CLASS B AND CLASS X SHARES REFLECT THE
ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN
UNDERTAKING THAT MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME. HAD THESE
EXPENSES NOT BEEN ABSORBED, THE FUND'S CLASS B AND CLASS X SHARES' YIELDS WOULD
HAVE BEEN LOWER. WITHOUT THE FUND'S EXPENSE ABSORPTION, THE FUND'S CLASS B
SHARES WOULD HAVE PRODUCED AN ANNUALIZED NET YIELD OF 5.00% AND AN ANNUALIZED
EFFECTIVE NET YIELD OF 5.12%, AND THE FUND'S CLASS X SHARES WOULD HAVE PRODUCED
AN ANNUALIZED NET YIELD OF 4.92% AND AN ANNUALIZED EFFECTIVE NET YIELD OF 5.04%
The Fund 5
STATEMENT OF INVESTMENTS
May 31, 2000 (Unaudited)
<TABLE>
STATEMENT OF INVESTMENTS
Principal
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT--24.7% Amount ($) Value ($)
-------------------------------------------------------------------------------------------
<S> <C> <C>
Allfirst Bank
6.44%, 2/9/2001 50,000,000 (a) 49,979,262
Bayerische Hypo Und Vereinsbank (London)
6.25%, 7/20/2000 50,000,000 50,000,670
Cariplo (London)
6.06%, 6/9/2000 100,000,000 100,000,109
Credit Suisse (Yankee)
6.72%, 6/12/2000 150,000,000 (a) 150,000,000
Deutsche Bank AG (London)
6.08%, 6/13/2000 80,000,000 80,000,263
First Tennessee Bank
6.65%, 10/16/2000 100,000,000 (a) 100,000,000
Merita Bank PLC (Yankee)
6.61%, 1/22/2001 50,000,000 49,984,710
Royal Bank of Canada (Yankee)
6.58%, 1/16/2001 80,000,000 79,975,109
Societe Generale (Yankee)
6.20%-6.62%, 7/6/2000-1/18/2001 170,000,000 169,986,472
Svenska Handelsbanken NY (London)
6.06%, 6/12/2000 70,000,000 70,000,211
Toronto Dominion Bank (London)
6.05%, 6/12/2000 100,000,000 100,000,301
U.S. Bank N.A. Minneapolis
6.75%, 3/19/2001 50,000,000 (a) 50,000,000
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $1,049,927,107) 1,049,927,107
-------------------------------------------------------------------------------------------------
COMMERCIAL PAPER--32.8%
-------------------------------------------------------------------------------------------------
Alcoa Inc.
6.77%, 8/23/2000 50,000,000 49,233,403
Atlantis One Funding
6.76%, 8/2/2000 200,000,000 197,706,000
Donaldson, Lufkin, & Jenrette
6.27%-6.89%, 6/26/2000-8/24/2000 140,000,000 138,263,048
General Electric Capital Corp.
6.68%, 8/8/2000-8/9/2000 200,000,000 197,499,750
HSBC Bank USA, Inc.
5.99%-6.73%, 8/15/2000-11/6/2000 75,000,000 74,705,776
Heller Financial Inc.
6.15%-6.80%, 6/20/2000-8/7/2000 30,000,000 29,811,631
Lehman Brothers Holdings Inc.
6.80%-7.40%, 11/20/2000-2/12/2001 120,000,000 116,510,578
6
Principal
COMMERCIAL PAPER (CONTINUED) Amount ($) Value ($)
--------------------------------------------------------------------------------------------
Morgan (J.P.) & Co.
6.11%, 6/5/2000 110,000,000 109,926,056
Morgan Stanley, Dean Witter & Co.
6.04%-6.20%, 6/5/2000-6/23/2000 150,000,000 149,747,500
Paine Webber Group Inc.
6.24%, 1/26/2001 25,000,000 25,000,000
Salomon Smith Barney Holdings Inc.
6.75%, 8/4/2000 100,000,000 98,817,778
Spintab AB
6.02%-6.25%, 6/2/2000-7/20/2000 207,770,000 207,310,657
TOTAL COMMERCIAL PAPER
(cost $1,394,532,177) 1,394,532,177
---------------------------------------------------------------------------------------------
BANK NOTES--19.4%
---------------------------------------------------------------------------------------------
Bank Austria AG
6.46%, 12/11/2000 100,000,000 (a) 99,963,288
Bank of America N.A.
6.25%, 7/20/2000 100,000,000 100,000,000
Bank of Nova Scotia
6.04%, 11/17/2000 100,000,000 99,967,678
First Union National Bank
6.68%, 2/26/2001 100,000,000 (a) 100,000,000
Fleet National Bank
6.76%, 7/13/2000 50,000,000 (a) 49,997,246
Key Bank N.A.
6.66%, 5/11/2001-6/1/2001 200,000,000 (a) 200,000,000
U.S. Bank N.A. Minneapolis
6.31%-6.79%, 10/2/2000-5/11/2001 126,000,000 (a) 125,957,723
Union Bank California
6.00%, 8/11/2000 50,000,000 50,000,000
TOTAL BANK NOTES
(cost $825,885,935) 825,885,935
---------------------------------------------------------------------------------------------
CORPORATE NOTES--16.3%
---------------------------------------------------------------------------------------------
Bear Stearns Cos. Inc.
6.42%, 1/5/2001 50,000,000 (a) 50,000,000
GTE Corp.
6.24%, 6/12/2000 180,000,000 (a) 179,996,519
Heller Financial Inc.
6.90%, 8/7/2000 93,000,000 (a) 93,000,000
The Fund 7
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
CORPORATE NOTES (CONTINUED) Amount ($) Value ($)
-------------------------------------------------------------------------------------------------
Lehman Brothers Holdings Inc.
6.64%, 2/27/2001 35,000,000 (a) 35,078,531
Merrill Lynch & Co. Inc.
6.58%-6.66%, 6/28/2000-3/28/2001 161,000,000 (a) 160,994,797
Morgan (J.P.) & Co.
6.67%, 3/6/2001 100,000,000 (a) 99,992,383
Morgan Stanley, Dean Witter & Co.
6.67%, 3/19/2001 41,000,000 (a) 41,000,000
Paine Webber Group Inc.
6.47%, 10/20/2000 31,500,000 (a) 31,500,000
TOTAL CORPORATE NOTES
(cost $691,562,230) 691,562,230
-------------------------------------------------------------------------------------------
PROMISSORY NOTES--4.8%
--------------------------------------------------------------------------------------------
Goldman Sachs Group Inc.
6.67%-7.06%, 7/17/2000-11/14/2000
(cost $205,000,000) 205,000,000 (b,c) 205,000,000
----------------------------------------------------------------------------------------------
TIME DEPOSITS--3.3%
----------------------------------------------------------------------------------------------
Deutsche Bank AG (Grand Cayman)
6.81%, 6/1/2000 75,000,000 75,000,000
HSBC Bank USA (London)
6.75%, 6/1/2000 3,800,000 3,800,000
Wachovia Bank of N.C. (Grand Cayman)
6.81%, 6/1/2000 13,000,000 13,000,000
Westdeutsche Landesbank Gironzentrale (Grand Cayman)
6.78%, 6/1/2000 50,000,000 50,000,000
TOTAL TIME DEPOSITS
(cost $141,800,000) 141,800,000
-------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $4,308,707,449) 101.3% 4,308,707,449
LIABILITIES, LESS CASH AND RECEIVABLES (1.3%) (55,864,988)
NET ASSETS 100.0% 4,252,842,461
(A) VARIABLE INTEREST RATE--SUBJECT TO PERIODIC CHANGE.
(B) THESE NOTES WERE ACQUIRED FOR INVESTMENT, NOT WITH INTENT TO DISTRIBUTE OR
SELL.
(C) SECURITIES RESTRICTED AS TO PUBLIC RESALE. THESE SECURITIES WERE ACQUIRED
FROM 5/9/00-5/18/00 AT A COST OF PAR VALUE. AT MAY 31, 2000, THE AGGREGATE
VALUE OF THESE SECURITIES IS $205 MILLION REPRESENTING APPROXIMATELY 4.82%
OF NET ASSETS AND ARE VALUED AT AMORTIZED COST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
8
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 4,308,707,449 4,308,707,44
Cash 12,633,383
Interest receivable 35,020,613
Prepaid expenses 97,581
4,356,459,026
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 3,382,454
Payable for investment securities purchased 100,000,000
Accrued expenses 234,111
103,616,565
--------------------------------------------------------------------------------
NET ASSETS ($) 4,252,842,461
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 4,252,939,967
Accumulated net realized gain (loss) on investments (97,506)
--------------------------------------------------------------------------------
NET ASSETS ($) 4,252,842,461
<TABLE>
NET ASSET VALUE PER SHARE
Class A Class B Class X
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Assets ($) 892,919,995 3,359,285,480 636,986
Shares Outstanding 892,977,287 3,359,325,689 636,986
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 1.00 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 9
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 126,434,685
EXPENSES:
Management fee--Note 2(a) 10,456,918
Shareholder servicing costs--Note 2(c) 5,275,294
Distribution fees--Note 2(b) 4,182,933
Registration fees 127,232
Custodian fees 93,841
Prospectus and shareholders' reports 48,420
Professional fees 24,581
Directors' fees and expenses--Note 2(d) 20,963
Miscellaneous 19,738
TOTAL EXPENSES 20,249,920
Less-reduction in management fee
due to undertaking--Note 2(a) (347,735)
NET EXPENSES 19,902,185
INVESTMENT INCOME--NET 106,532,500
--------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($): (13,297)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 106,519,203
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
10
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
May 31, 2000 Year Ended
(Unaudited) November 30, 1999(a)
------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS ($):
Investment income--net 106,532,500 153,750,017
Net realized gain (loss) on investments (13,297) (15,759)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 106,519,203 153,734,258
-------------------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A Shares (23,947,715) (38,585,389)
Class B Shares (82,567,569) (115,159,335)
Class X Shares (17,216) (5,293)
TOTAL DIVIDENDS (106,532,500) (153,750,017)
----------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A Shares 4,861,018,943 6,026,790,463
Class B Shares 5,692,156,497 8,362,763,082
Class X Shares 824,410 1,015,928
Dividends reinvested:
Class A Shares 23,492,219 37,933,080
Class B Shares 80,467,102 112,244,553
Class X Shares 13,950 2,006
Cost of shares redeemed:
Class A Shares (4,855,568,820) (6,036,445,295)
Class B Shares (5,470,171,549) (7,845,483,988)
Class X Shares (755,588) (463,720)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 331,477,164 658,356,109
TOTAL INCREASE (DECREASE) IN NET ASSETS 331,463,867 658,340,350
----------------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 3,921,378,594 3,263,038,244
END OF PERIOD 4,252,842,461 3,921,378,594
(A) FROM JUNE 1, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1999
FOR CLASS X SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 11
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain 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.
<TABLE>
Six Months Ended Ten Months Ended
May 31, 2000 Year Ended November 30, November 30, Year Ended January 31,
------------------------------------------------------------------------------
CLASS A SHARES (Unaudited) 1999 1998 1997(a) 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .026 .044 .049 .041 .047 .053 .037
Distributions:
Dividends from
investment income--net (.026) (.044) (.049) (.041) (.047) (.053) (.037)
Net asset value,
end of period 1.00 1.00 1.00 1.00 1.00 1.00 1.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 5.31(b) 4.53 4.98 4.99(b) 4.81 5.42 3.75
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .78(b) .78 .77 .88(b) .84 .86 .94
Ratio of net investment
income
to average net assets 5.26(b) 4.44 4.88 4.89(b) 4.71 5.28 3.68
Decrease reflected in
above expense ratios
due to undertakings by
The Dreyfus Corporation -- -- -- -- -- .01 .04
------------------------------------------------------------------------------------------------------------------------------------
Net Assets,
end of period ($x1,000) 892,920 863,981 835,706 903,313 764,119 654,581 572,116
(A) THE FUND CHANGED ITS FISCAL YEAR END FROM JANUARY 31 TO NOVEMBER 30.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
12
Six Months Ended Ten Months Ended
May 31, 2000 Year Ended November 30, November 30, Year Ended January 31,
------------------------------------------------------------------------------
CLASS B SHARES (Unaudited) 1999 1998 1997a 1997 1996(b)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .025 .042 .047 .039 .046 .043
Distributions:
Dividends from
investment income--net (.025) (.042) (.047) (.039) (.046) (.043)
Net asset value,
end of period 1.00 1.00 1.00 1.00 1.00 1.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 5.07(c) 4.32 4.78 4.83(c) 4.65 5.18(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets 1.00(c) 1.00 1.00 1.00(c) 1.00 1.00(c)
Ratio of net investment
income to average
net assets 5.03(c) 4.24 4.66 4.78(c) 4.56 5.00(c)
Decrease reflected in
above expense ratios
due to undertakings by
The Dreyfus Corporation .02(c) .03 .06 .05(c) .07 .07(c)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets,
end of period
($x1,000) 3,359,285 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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 13
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
Six Months Ended
May 31, 2000 Year Ended
CLASS X SHARES (Unaudited) November 30,
1999(a)
------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00
Investment Operations:
Investment income--net .025 .021
Distributions:
Dividends from investment income--net (.025) (.021)
Net asset value, end of period 1.00 1.00
-----------------------------------------------------------------------------------------
TOTAL RETURN (%) 5.03(b) 4.33(b)
-----------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.05(b) 1.05(b)
Ratio of net investment income
to average net assets 5.18(b) 4.01(b)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .06(b) .25(b)
----------------------------------------------------------------------------------------------
Net Assets, end of period ($x1,000) 637 554
(A) FROM JUNE 1, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1999.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
14
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares, which
are sold to the public without a sales charge. Prior to March 22, 2000, Premier
Mutual Fund Services, Inc. was the distributor. 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 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
The Fund 15
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
management estimates and assumptions. Actual results could differ from those
estimates.
(a) Portfolio valuation: Investments in securities are valued at amortized cost,
which has been determined by the 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 receives net earnings credits
based on available cash balances left on deposit.
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, 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.
16
(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 May 31, 2000, 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 fees, 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. The Manager had undertaken through May 31, 2000 to reduce the
management fee paid by the fund, to the extent that the fund's aggregate annual
expenses (exclusive of certain expenses as described above) exceeded as annual
rate of 1% for Class B and 1.05% for Class X of the value of their average daily
net assets. The reduction in management fee, pursuant to the undertaking
amounted to $347,530 for Class B and $205 for Class X during the period ended
May 31, 2000.
The Fund 17
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(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
pays the distributor for distributing their shares and servicing shareholder
accounts ("Servicing") and advertising and marketing relating to Class A shares
at an aggregate annual rate of up to .20 of 1% of the value of the average daily
net assets of Class A. The distributor may pay one or more 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, The Manager 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 May 31,
2000, Class A shares were charged $907,282 pursuant to the Plan, of which
$473,366 was paid to DSC.
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 pay 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 May 31, 2000, Class B and
Class X shares were charged $3,274,822 and $829, respectively, pursuant to the
Class B and Class X Distribution Plans, of which $1,690,202 and $490,
respectively, were paid to DSC.
18
(c) Under the fund's Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan"), Class A shares pay DSC 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
period ended May 31, 2000, Class A shares were charged $216,144 pursuant to the
Class A Shareholder Services Plan.
Under the fund's 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
the 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. During the period ended May 31, 2000, $4,912,089 and $829, respectively,
were charged pursuant to the Class B and Class X Shareholder Services Plans, of
which, $2,535,159 and $499, respectively, were paid to DSC.
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, 2000, the fund was charged $84,325 pursuant to the transfer agency
agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group" ). Effective
The Fund 19
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
April 13, 2000, each Board member who is not an "affiliated person" as defined
in the Act receives an annual fee of $50,000 and an attendance fee of $6,500 for
each meeting attended in person and $500 for telephone meetings. These fees are
allocated among the funds in the Fund Group. The Chairman of the Board receives
an additional 25% of such compensation. Prior to April 13, 2000, each Board
member who was not an "affiliated person" as defined in the Act received from
the fund an annual fee of $2,500 and an attendance fee of $500 per meeting. The
Chairman of the Board received an additional 25% of such compensation. Subject
to the fund's Director Emeritus Program Guidelines, Emeritus Board members, if
any, receive 50% of the fund's annual retainer fee and per meeting fee paid at
the time the Board member achieved emeritus status.
20
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
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 [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 196SA005
