PRESIDENT'S LETTER
Dear Shareholder:
We are pleased to report the performance of the General Municipal Bond
Fund for the year ended February 28, 1994. During the period, your Fund
paid income dividends of approximately $.91 per share which equates to an
annualized distribution rate of 5.75% per share, based on the February 28
closing net asset value per share, adjusted for capital gain distributions.
All income dividends distributed are free from Federal income tax.*
Furthermore, reflecting the municipal bond market's strong performance
during 1993, the Fund also distributed capital gains of $.2252 per share.
The market's recent, sharp sell-off has reduced the net asset value per
share to $15.46 as of the close of the Fund's fiscal year, rendering it
slightly lower (approximately $.05 after adjusting for capital gains) than
it was one year ago.
Soon after his inauguration last year, President Clinton quickly moved
to outline his domestic economic agenda, which called for higher taxes
and a substantial reduction in the Federal budget deficit. In return, it was
expected that the Federal Reserve Board would continue to maintain a
stimulative monetary policy. In fact, Congress approved a budget package
in early August that tilted fiscal policy toward deficit reduction. In
response, interest rates accelerated their downward move during the
summer before finally reaching their low point during the fourth quarter
of 1993. More recently, in response to the Federal Reserve Board's
tightening of short-term interest rates last month, and the fear of rising
inflation, bond prices have moved lower. Today yields are marginally
higher than they were one year ago.
For most of the fiscal year, the Fund sought to capitalize on the
movement to lower interest rates. Lengthening the average maturity,
maintaining the duration of the portfolio, and taking advantage of certain
types of derivative securities (which increased in price to a greater
degree as interest rates declined) were of primary importance in deciding
what investments to include in the portfolio. As the year progressed, it
became apparent that the Fund would be vulnerable to the risk of losing
some of its higher-yielding bonds as interest rates fell and issuers
exercised their call options; we looked to maintain the portfolio's income
level by purchasing bonds that would yield a high degree of income. For
example, derivatives as well as some industrial revenue bonds were added
to the Fund. The incremental income provided by these investments
enhanced the Fund's performance last year.
As we stated in our semi-annual letter (dated 9/16/93), it was our
intention to adopt a slightly more defensive portfolio posture in order to
reduce the volatility of the portfolio. In response, we reduced the Fund's
exposure to those derivatives and bonds with the longest durations (i.e.,
price sensitivities). We still believe that a conservative stance is
warranted in view of the heightened degree of uncertainty about the near-
term direction of the economy and inflation. Certainly, the recent move by
the Fed to hike the Federal Funds rate provides enough of an impetus to
maintain a cautious stance on the market. The Fed generally acts in a
series of moves rather than taking a "one shot approach".
The technical position of the municipal bond market is encouraging: new
issue volume is forecasted to be considerably less in 1994 than the record
level of 1993. Higher individual tax rates generally enhance the
attractiveness of tax exempt investments. Casualty insurance companies,
after years of inactivity, have returned to the marketplace as purchasers
of municipal bonds, and they continue to be very willing buyers.
The uncertain economic environment, and concern that the Fed might
still move again to tighten the credit reins, recommend a cautious
approach; our actions regarding the portfolio will be influenced
accordingly.
We appreciate your investment in the Fund, and we want to assure you
that we are at all times working in the Fund's best interest.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
President
March 8, 1994
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders. Income is subject to State and local taxes.
Capital gains are generally subject to Federal, State and local taxes.
GENERAL MUNICIPAL BOND FUND, INC. FEBRUARY 28, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN GENERAL MUNICIPAL
BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
[Exhibit A]
Past performance is not predictive of future performance.
The above illustration compares a $10,000 investment made in the General
Municipal Bond Fund on 3/21/84 (Inception Date) to a $10,000 investment
made in the Lehman Brothers Municipal Bond Index on that date. For
comparative purposes the value of the Index on 3/31/84 is used as the
beginning value on 3/21/84. All dividends and capital gain distributions
are reinvested.
The Fund invests primarily in municipal securities and its performance
takes into account fees and expenses. Unlike the Fund, the Lehman
Brothers Municipal Bond Index is an unmanaged total return performance
benchmark for the long-term, investment-grade tax exempt bond market,
calculated by using municipal bonds selected to be representative of the
market. The Index does not take into account charges, fees and other
expenses. Further information relating to Fund performance, including
expense reimbursements, if applicable, is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this
report.
*Source: Lehman Brothers
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS FEBRUARY 28, 1994
PRINCIPAL
MUNICIPAL BONDS-100.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
ALABAMA-1.1%
Birmingham North Medical Clinic Board, Revenue (Carraway Methodist Hospitals Project)
8%, 7/1/2015............................................................................. $ 2,000,000 $ 2,277,380
Courtland Township Industrial Development Board, Solid Waste Disposal Revenue
(Champion International Corp. Project) 7%, 6/1/2022...................................... 10,000,000 10,757,600
CALIFORNIA-2.2%
State of California:
6.30%, 9/1/2006.......................................................................... 4,500,000 4,959,720
6.50%, 9/1/2010.......................................................................... 6,250,000 6,958,438
California Public Works Board, Lease Revenue
(Department of Corrections - Madera State Prison) 6%, 6/1/2010........................... 2,500,000 2,581,225
Los Angeles Department of Water and Power, Electric Plant Revenue, Sinking Fund
10.35%, 1/15/2033 (a,b).................................................................. 4,885,000 5,068,188
San Marcos Public Facilities Authority, Public Improvement Revenue, Refunding
(Civic Center) 6.15%, 8/1/2013........................................................... 5,500,000 5,368,165
COLORADO-6.2%
Colorado Health Facilities Authority, Retirement Facilities Revenue (Liberty Heights)
Zero Coupon, 7/15/2022................................................................... 47,550,000 7,127,270
Colorado Housing Finance Authority, Single Family Program 7.55%, 8/1/2023.................... 4,200,000 4,495,512
Dawson Ridge Metropolitan District Number 1, Refunding:
Zero Coupon, 10/1/2017................................................................... 7,260,000 1,605,258
Zero Coupon, Series A, 10/1/2022......................................................... 5,880,000 944,269
Zero Coupon, Series B, 10/1/2022......................................................... 47,535,000 7,633,646
Denver City and County, Airport System Revenue:
7.25%, 11/15/2007........................................................................ 6,250,000 6,767,813
8.25%, 11/15/2012........................................................................ 4,505,000 5,100,200
7.75%, 11/15/2021........................................................................ 16,760,000 18,680,696
8.50%, 11/15/2023........................................................................ 7,000,000 8,024,100
8.75%, 11/15/2023........................................................................ 3,250,000 3,847,253
8%, 11/15/2025........................................................................... 5,250,000 5,831,385
CONNECTICUT-.9%
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project) 5.50%, 1/1/2014............................................ 10,250,000 9,742,728
DELAWARE-.3%
Delaware Housing Authority, MFMR, Refunding 7.15%, 7/1/2014.................................. 3,000,000 3,153,870
DISTRICT OF COLUMBIA-1.9%
District of Columbia, Refunding:
5.875%, 6/1/2005......................................................................... 3,750,000 3,853,650
6%, 6/1/2007............................................................................. 7,400,000 7,567,018
5.875%, 6/1/2008......................................................................... 10,000,000 10,000,000
FLORIDA- 3.0%
Florida Board of Education, Capital Outlay 9.436%, 6/1/2018 (a,b)............................ 14,000,000 14,297,500
Leon County Educational Facilities Authority (Southgate Residence Hall Project):
3.75%, 12/1/1995......................................................................... 198,120 197,309
COP 9%, 9/1/2014(c)...................................................................... 4,000,000 2,800,000
Polk County Industrial Development Authority, IDR
7.525%, 1/1/2015......................................................................... 10,000,000 10,481,300
Tampa, Water and Sewer Revenue 9.932%, 10/1/2012 (Insured; FGIC)(a).......................... 5,700,000 6,518,976
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
GEORGIA-1.4%
Georgia Housing and Finance Authority, Home Ownership Mortgage Revenue
Zero Coupon, 12/1/2031 (Insured; FHA).................................................... $ 26,830,000 $ 1,904,393
Macon-Bibb County Industrial Authority, Industrial Revenue (Weyerhaeuser Co. Project)
9%, 10/1/2007............................................................................ 1,000,000 1,362,220
Savannah Hospital Authority, Revenue, Refunding and Improvement (Candler Hospital)
7%, 1/1/2011............................................................................. 9,300,000 9,798,108
Wayne County Development Authority, PCR, Refunding (ITT Rayonier Inc. Project)
6.10%, 11/1/2007......................................................................... 3,205,000 3,243,684
IDAHO-.7%
Idaho Housing Agency:
Housing Revenue (Blue Meadows Project) 7.20%, 7/1/2033 (Insured; FHA).................... 3,500,000 3,722,005
Single Family Mortgage 7.875%, 7/1/2024.................................................. 4,095,000 4,461,462
ILLINOIS-8.2%
Chicago, Gas Supply Revenue (People's Gas Light and Coke Co.) 8.10%, 5/1/2020................ 3,000,000 3,506,550
Chicago Metropolitan Water Reclamation District of Greater Chicago, Refunding:
5.95%, 12/1/2007......................................................................... 6,000,000 6,352,860
6.05%, 12/1/2009......................................................................... 3,000,000 3,172,080
Chicago-O'Hare International Airport, Special Facility Revenue:
(American Airlines Inc. Project) 7.875%, 11/1/2025....................................... 2,725,000 2,993,685
(United Airlines Inc.):
8.40%, 5/1/2018...................................................................... 2,955,000 3,309,245
8.50%, 5/1/2018...................................................................... 2,500,000 2,827,325
8.85%, 5/1/2018...................................................................... 6,660,000 7,812,979
Illinois Development Finance Authority, Revenue:
(Community Rehabilitation Providers Facility Acquisition) 8.75%, 3/1/2010................ 2,375,000 2,593,666
Pollution Control, Refunding (Commonwealth Edison Co. Project) 5.70%, 1/15/2009.......... 6,000,000 5,902,560
Retirement Housing:
Zero Coupon, 4/15/2020............................................................... 31,745,000 5,461,410
Zero Coupon, 7/15/2025............................................................... 34,125,000 4,122,300
Illinois Health Facilities Authority, Revenue:
(Beverly Farm Foundation) 9.125%, 12/15/2015............................................. 2,000,000 2,203,920
(Residential Centers Inc.) 8.50%, 8/15/2016.............................................. 6,100,000 6,315,635
Illinois Housing Development Authority, Multi-Family Housing 7.40%, 7/1/2023................. 2,000,000 2,112,840
Illinois Toll Highway Authority, Toll Highway Priority Revenue 6.30%, 1/1/2011............... 23,750,000 25,653,562
Village of Romeoville 8.375%, 1/1/2010....................................................... 7,495,000 8,367,868
INDIANA-2.1%
Fishers, Economic Development Revenue, First Mortgage (United Student Funds Inc.)
8.375%, 9/1/2014......................................................................... 2,000,000 2,168,480
Indiana Bond Bank, Special Hospital Program (Hendricks Community Hospital Financing
Program) 7.125%, 4/1/2013................................................................ 2,500,000 2,776,550
Indiana Health Facility Financing Authority, HR, Refunding
(Saint Anthony Medical Center Project):
7%, 10/1/2012........................................................................ 4,025,000 4,441,588
7%, 10/1/2017........................................................................ 2,500,000 2,750,150
Indianapolis Local Public Improvement Bond Bank 6.75%, 2/1/2014.............................. 4,935,000 5,554,392
City of Sullivan, PCR, Refunding (Indiana Michigan Power Co. Project) 5.95%, 5/1/2009........ 6,000,000 6,008,460
IOWA-.4%
Iowa Student Loan Liquidity Corp., Student Loan Revenue, Refunding 5.80%, 12/1/2008.......... 5,000,000 5,015,350
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
KENTUCKY-2.2%
Kenton County Airport Board, Airport Revenue (Special Facilities - Delta Airlines Project)
7.125%, 2/1/2021......................................................................... $ 3,500,000 $ 3,644,865
City of Mount Sterling, Revenue (Kentucky League of Cities Funding Trust Lease Program)
6.10%, 3/1/2018.......................................................................... 5,500,000 5,562,425
Pendleton County, Multi-County Lease Revenue
(Kentucky Association of Counties Leasing Trust Program):
6.40%, 3/1/2019...................................................................... 3,000,000 3,115,200
6.50%, 3/1/2019...................................................................... 9,000,000 9,112,050
Trimble County, PCR (Louisville Gas and Electric Co.):
7.625%, 11/1/2000........................................................................ 500,000 593,420
7.625%, 11/1/2020........................................................................ 2,645,000 3,041,724
LOUISIANA-6.1%
Lake Charles Harbor and Terminal District, Port Facilities Refunding, Revenue
(Occidental Petroleum Corp. Project) 7.20%, 12/1/2020.................................... 3,000,000 3,317,790
Lake Charles Non-Profit Housing Development Corp., First Mortgage Revenue, Refunding
(Section 8 Assisted Chateau Project) 7.875%, 2/15/2025 (Insured; FHA).................... 1,000,000 1,006,250
Louisiana Public Facilities Authority, HR:
(Louisiana Association of Independent Colleges and Universities Facilities Loan Program)
7%, 12/1/2017........................................................................ 6,195,000 6,614,525
Refunding (Our Lady of the Lake Regional Medical Center Project)
9.354%, 11/28/2014 (Insured; MBIA)(a)................................................ 13,000,000 13,942,500
Parish of Calcasieu Industrial Development Board, Environmental Revenue
(Citgo Petroleum Corp. Project) 6%, 7/1/2023............................................. 10,000,000 9,650,700
Parish of Saint Charles, Revenue (Louisiana Power and Light Co. Project):
Pollution Control:
8%, 12/1/2014........................................................................ 2,500,000 2,881,800
7.50%, 6/1/2021...................................................................... 4,100,000 4,546,244
Solid Waste Disposal Revenue 7.05%, 4/1/2022............................................. 9,150,000 9,951,448
Parish of Saint James, Solid Waste Disposal Revenue (Freeport-McMoRan Partnership Project)
7.70%, 10/1/2022......................................................................... 4,140,000 4,316,033
Parish of West Feliciana, PCR (Gulf States Utilities Co. Project):
7.70%, Series II, 12/1/2014.............................................................. 9,500,000 10,810,715
7.70%, Series III, 12/1/2014............................................................. 2,000,000 2,265,160
MAINE-.3%
Maine Public Utility Financing Bank, Public Utility Revenue (Maine Public Services Co. Project)
7.875%, 4/1/2021 (LOC; Barclays Bank p.l.c.)(d).......................................... 2,750,000 2,898,060
MARYLAND-.2%
Montgomery County Housing Opportunities Commission, MFMR 7.375%, 7/1/2032.................... 2,635,000 2,782,876
MASSACHUSETTS-1.9%
Massachusetts Bay Transportation Authority, General Transportation System 7%, 3/1/2021....... 10,000,000 11,780,700
Massachusetts Health and Educational Facilities Authority, Revenue
(New England Deaconess Hospital Issue) 7.20%, 4/1/2022................................... 6,000,000 6,681,060
Massachusetts Port Authority, Special Project Revenue (Harborside Hyatt Project)
10%, 3/1/2026............................................................................ 3,000,000 3,343,380
MICHIGAN-5.6%
City of Detroit, Revenue:
Sewage Disposal 8.561%, 7/1/2023 (Insured; FGIC)(a)...................................... 10,000,000 9,850,000
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
MICHIGAN (CONTINUED)
City of Detroit, Revenue (continued):
Water Supply System:
9.931%, 7/1/2002 (Insured; FGIC)(a).................................................. $ 7,100,000 $ 8,804,000
9.931%, 7/1/2022 (Insured; FGIC)(a).................................................. 2,900,000 3,240,750
Flint Tax Increment Finance Authority, Refunding 6.125%, 6/1/2006............................ 3,900,000 4,098,705
Greater Detroit Resource Recovery Authority, Revenue:
9.25%, Series B, 12/13/2008.............................................................. 6,000,000 6,508,320
9.25%, Series G, 12/13/2008.............................................................. 3,750,000 4,067,700
Lapeer Economic Development Corp., Limited Obligation Revenue
(Lapeer Health Services Project) 8.625%, 2/1/2020........................................ 1,670,000 2,038,118
Michigan Strategic Fund, Limited Obligation Revenue:
Refunding (Consumer Power Co. Project) 5.80%, 6/15/2010.................................. 5,400,000 5,511,672
(WMX Technologies Inc. Project) 6%, 11/1/2013............................................ 14,000,000 13,918,660
Romulus Economic Development Corp., Economic Development Revenue, Refunding
(HIR Limited Partnership Project)
7%, 11/1/2015 (Surety Bond; ITT Lyndon Property Co. Inc.)................................ 5,000,000 5,401,050
MINNESOTA-.7%
Rochester, Health Care Facilities Revenue (Mayo Medical Center) 9.18%, 11/15/2014 (a)........ 7,000,000 7,789,950
NEBRASKA-1.1%
Nebraska Higher Education Loan Program Inc., Revenue 6.40%, 6/1/2013......................... 12,500,000 12,977,625
NEVADA-1.4%
Clark County:
IDR (Southwest Gas Corp.) 7.50%, 9/1/2032................................................ 5,000,000 5,477,200
Passenger Facility Charge Revenue (Las Vegas McCarran International Airport)
6.25%, 7/1/2008...................................................................... 9,420,000 10,172,093
NEW HAMPSHIRE-1.5%
New Hampshire Higher Educational and Health Facilities Authority, Revenue
(Crotched Mountain Rehabilitation Center) 7.75%, 1/1/2020................................ 2,200,000 2,510,684
New Hampshire Housing Finance Authority, Single Family Residential Mortgage:
7.75%, 7/1/2023.......................................................................... 7,460,000 7,943,110
7.70%, 7/1/2029.......................................................................... 5,005,000 5,228,273
New Hampshire Industrial Development Authority, PCR (United Illuminating)
8%, 12/1/2014............................................................................ 1,000,000 1,147,890
NEW JERSEY-3.6%
Hudson County Improvement Authority, Solid Waste System Revenue 7.10%, 1/1/2020.............. 10,950,000 11,628,024
New Jersey Economic Development Authority, Solid Waste Disposal Facility Revenue
(Garden State Paper Co. Inc. Project) 7.125%, 4/1/2022
(Guaranteed; Media General, Inc., LOC; Toronto-Dominion Bank)(d)......................... 4,500,000 5,052,150
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007................ 5,000,000 5,409,750
Salem County Industrial Pollution Control Financing Authority, PCR
(Public Service Electric and Gas Co.) 5.45%, 2/1/2032.................................... 20,000,000 19,018,000
NEW MEXICO-.7%
Farmington, PCR, Refunding (Public Service Co. - San Juan Project) 6.40%, 8/15/2023.......... 7,750,000 7,765,268
NEW YORK-9.6%
Metropolitan Transportation Authority, Service Contract:
(Commuter Facilities) 7.50%, 7/1/2016.................................................... 500,000 589,455
(Transit Facilities) 7.50%, 7/1/2016..................................................... 1,250,000 1,470,137
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW YORK (CONTINUED)
New York City:
8%, 6/1/1998............................................................................. $ 3,000,000 $ 3,355,620
8%, 6/1/2001............................................................................. 2,500,000 2,904,395
7.65%, 2/1/2006.......................................................................... 2,000,000 2,300,360
7.65%, 2/1/2007.......................................................................... 6,000,000 6,913,740
7.75%, 8/15/2007......................................................................... 6,400,000 7,475,776
8.25%, 11/15/2010........................................................................ 5,000,000 6,010,600
Refunding 7.50%, 2/1/2006................................................................ 7,000,000 7,984,550
New York City Industrial Development Agency, Special Facility Revenue
(American Airlines Inc. Project) 8%, 7/1/2020............................................ 1,325,000 1,458,560
New York State Dormitory Authority, Revenue:
(City University System):
5.75%, 7/1/2009...................................................................... 7,000,000 7,124,040
7.50%, 7/1/2010...................................................................... 4,500,000 5,369,850
(State University Educational Facilities):
7.50%, 5/15/2013..................................................................... 2,500,000 3,027,225
Refunding 7.50%, 5/15/2011........................................................... 1,220,000 1,464,744
New York State Energy Research and Development Authority, Electric Facilities Revenue
(Long Island Lighting Co. Project):
7.15%, 6/1/2020...................................................................... 4,000,000 4,286,040
6.90%, 8/1/2022...................................................................... 6,050,000 6,381,722
New York State Housing Finance Agency, Health Facilities Revenue, Refunding
(New York City) 7.90%, 11/1/1999......................................................... 4,500,000 5,148,630
New York State Medical Care Facilities Finance Agency 8.013%, 8/15/2010 (a,b)................ 6,250,000 5,773,437
New York State Thruway Authority, Local Highway and Bridge, Service Contract Revenue
7.25%, 1/1/2010.......................................................................... 5,000,000 5,681,600
New York State Urban Development Corp., Revenue:
7.50%, 4/1/2020.......................................................................... 11,000,000 12,678,270
(Correctional Capital Facilities) 6.50%, 1/1/2009........................................ 4,075,000 4,367,544
Triborough Bridge and Tunnel Authority (Convention Center Project) 7.25%, 1/1/2010........... 6,950,000 8,033,158
NORTH CAROLINA-.5%
North Carolina Eastern Municipal Power Agency, Power System Revenue, Refunding
6.125%, 1/1/2009......................................................................... 5,000,000 5,248,850
NORTH DAKOTA-1.7%
Mercer County, PCR (Basin Electric Power) 7%, 1/1/2019....................................... 5,150,000 5,560,610
North Dakota Housing Finance Agency, SFMR:
7.30%, 7/1/2024.......................................................................... 7,050,000 7,526,439
7.75%, 7/1/2024 (Insured; MBIA).......................................................... 6,000,000 6,471,780
OHIO-1.0%
Cleveland, Parking Facilities Improvement Revenue 8.10%, 9/15/2022........................... 5,300,000 5,903,564
Ohio Water Development Authority, Pollution Control Facilities Revenue
(Toledo Edison Co. Project) 7.40%, 11/1/2022............................................. 5,000,000 5,282,800
OKLAHOMA-3.1%
McGee Creek Authority, Water Revenue:
6%, 1/1/2013 (Insured; MBIA)............................................................. 6,025,000 6,382,403
6%, 1/1/2023 (Insured; MBIA)............................................................. 6,675,000 7,044,327
Trustees of the Tulsa Municipal Airport Trust, Revenue (American Airlines Inc. Project):
9.50%, 6/1/2020.......................................................................... 1,000,000 1,092,510
7.375%, 12/1/2020 (Guaranteed; AMR Corp.)................................................ 7,000,000 7,439,810
7.60%, 12/1/2030......................................................................... 12,000,000 13,013,040
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
PENNSYLVANIA-7.0%
Blair County Hospital Authority, Revenue (Altoona Hospital Project)
9.837%, 7/1/2013 (Insured; AMBAC)(a)..................................................... $ 3,300,000 $ 3,719,331
Greene County General Facilities Authority, Lease Revenue 7%, 7/1/2011....................... 2,825,000 3,189,058
Lancaster County Hospital Authority, Health Center Revenue (United Church Homes Project)
9.125%, 10/1/2014........................................................................ 2,000,000 2,238,660
Borough of Langhorne Manor Higher Education and Health Authority, HR
(The Lower Bucks Hospital) 7.30%, 7/1/2012............................................... 3,400,000 3,710,624
Lehigh County General Purpose Authority, Revenue (Wiley House) 9.50%, 11/1/2016.............. 3,500,000 3,903,760
Luzerne County Industrial Development Authority, Exempt Facilities Revenue, Refunding
(Pennsylvania Gas and Water Co. Project) 7.20%, 10/1/2017................................ 9,000,000 9,783,630
Montgomery County Higher Education and Health Authority, Revenue
(Northwestern Corp.) 8.50%, 6/1/2016..................................................... 3,000,000 3,261,510
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue
7.15%, 9/1/2021 (Insured; AMBAC)......................................................... 5,500,000 6,050,165
Philadelphia:
Gas Works Revenue:
7.70%, 6/15/2001..................................................................... 2,745,000 3,281,922
7.70%, 6/15/2011..................................................................... 1,255,000 1,500,164
Water and Sewer Revenue:
7.35%, 9/1/2004...................................................................... 3,990,000 4,658,325
5.625%, 6/15/2008.................................................................... 25,570,000 25,693,503
Philadelphia Hospital and Higher Education Facilities Authority, HR 6.25%, 7/1/2013.......... 3,900,000 3,900,624
Schuykill County Industrial Development Authority, RRR (Schuykill Energy Resources Inc.)
6.50%, 1/1/2010.......................................................................... 5,000,000 4,992,250
RHODE ISLAND-2.7%
Rhode Island Depositors Economic Protection Corp., Special Obligation Refunding
5.875%, 8/1/2011 (Insured; FSA).......................................................... 12,885,000 13,134,969
Rhode Island Housing and Mortgage Finance Corp.:
(Homeownership 1-D) 7.875%, 10/1/2022.................................................... 5,855,000 6,231,886
(Homeownership E-1) 7.55%, 10/1/2022..................................................... 7,305,000 7,820,952
(Rental Housing Program) 7.95%, 10/1/2020................................................ 3,195,000 3,334,014
SOUTH CAROLINA-1.6%
Calhoun County, Solid Waste Disposal Facilities Revenue (Eastman Kodak Co. Project)
6.75%, 5/1/2017.......................................................................... 5,000,000 5,705,250
Fairfield County, PCR (South Carolina Electric and Gas Co.) 6.50%, 9/1/2014.................. 3,250,000 3,515,980
Richland County, Solid Waste Disposal Facilities Revenue (Union Camp Corp. Project)
7.125%, 9/1/2021......................................................................... 5,000,000 5,537,950
Sumter County, School District Number 2, COP 8.125%, 4/1/2010................................ 3,135,000 3,411,664
TENNESSEE-1.0%
McMinn County Industrial Development Board, PCR (Calhoun Newsprint Co. Project)
7.625%, 3/1/2016......................................................................... 4,500,000 4,973,130
Tennessee Housing Development Agency (Homeownership Program) 7.65%, 7/1/2022................. 6,370,000 6,807,109
TEXAS-10.8%
Alliance Airport Authority Inc., Special Facilities Revenue (American Airlines Inc. Project):
7%, 12/1/2011 (Guaranteed; AMR Corp.).................................................... 13,900,000 15,166,985
7.50%, 12/1/2029......................................................................... 5,500,000 5,894,735
Austin, Convention Center Revenue:
8.25%, 11/15/2014........................................................................ 9,750,000 11,605,425
Refunding 6%, 11/15/2005................................................................. 3,170,000 3,183,599
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
TEXAS (CONTINUED)
Bell County Health Facilities Development Corp., Revenue
(Southern Healthcare-Southview) 10.50%, 3/1/2020......................................... $ 2,960,000 $ 3,299,482
Brazos River Authority, PCR (Collateral Texas Utilities Electric Co. Project)
7.875%, 3/1/2021......................................................................... 2,955,000 3,345,474
Brazos River Harbor Navigation District, Brazoria County PCR (BASF Corp. Project)
6.75%, 2/1/2010.......................................................................... 5,000,000 5,516,700
Dallas - Fort Worth International Airport Facility Improvement Corp., Revenue
(American Airlines Inc.) 7.50%, 11/1/2025................................................ 2,500,000 2,686,225
Dickens County, Lease Obligation (Jail and Detention Facility Project)
8.875%, 4/1/2005......................................................................... 3,950,000 4,266,000
Fort Bend County, Municipal Utility District Number 42, Refunding 8.30%, 4/1/2009............ 1,500,000 1,621,710
Gulf Coast Waste Disposal Authority:
Multi-Modal Interchangeable Rate Revenue (Champion International Corp. Project)
7.45%, 5/1/2026...................................................................... 15,000,000 16,599,600
Solid Waste Disposal Revenue (Champion International Corp. Project) 7.25%, 4/1/2017...... 4,735,000 5,177,012
Harris County Industrial Development Corp., Marine Terminal Revenue, Refunding
(GATX Terminals Corp. Project) 6.95%, 2/1/2022........................................... 3,250,000 3,538,308
Montgomery County Health Facilities Development Corp., Hospital Mortgage Revenue
(Woodlands Medical Center Project) 8.85%, 8/15/2014...................................... 7,025,000 8,008,641
Orange County Navigation and Port District Industrial Development Corp., IDR
(North Star Steel Project) 9.50%, 12/1/2004.............................................. 1,000,000 1,109,460
Red River Authority, PCR (Hoechst Celanese Corp. Project) 6.875%, 4/1/2017................... 5,700,000 6,251,931
Rio Grande Valley Health Facilities Development Corp., Retirement Facility Revenue
(Golden Palms Retirement and Health Center Project)
9.832%, 8/1/2012 (Insured; MBIA)(a)...................................................... 7,300,000 8,103,876
Sam Rayburn Municipal Power Agency, Power Supply System Revenue, Refunding
6.50%, 10/1/2008......................................................................... 6,750,000 6,654,150
Texas Department of Housing and Community Affairs, Collateralized Home Mortgage
Revenue 10.90%, 7/2/2024 (Insured; FNMA)(a).............................................. 10,000,000 10,475,000
UTAH-1.1%
Carbon County, Solid Waste Disposal Revenue, Refunding (Sunnyside Cogeneration)
9.25%, 7/1/2018.......................................................................... 8,000,000 8,777,040
Utah Housing Finance Agency, Single Family Mortgage:
7.70%, 7/1/2015.......................................................................... 2,595,000 2,701,992
7.75%, 1/1/2023.......................................................................... 960,000 1,047,571
VIRGINIA-1.3%
Augusta County Industrial Development Authority, HR (Augusta Hospital Corp. Project)
7%, 9/1/2021............................................................................. 3,500,000 4,041,660
Peninsula Ports Authority, Coal Terminal Revenue, Refunding
(Dominion Terminal Association Project) 7.375%, 6/1/2020 (Guaranteed; The Pittston Co.).. 10,000,000 10,874,600
WASHINGTON-2.9%
Chelan County Public Utility District Number 001, Consolidated Revenue
(Chelan Hydroelectric):
5.70%, 7/1/2008...................................................................... 5,650,000 5,710,625
7.50%, 7/1/2011...................................................................... 4,155,000 5,075,748
6.55%, 7/1/2026...................................................................... 7,000,000 7,386,400
Port of Longview Industrial Development Corp., Solid Waste Disposal Revenue
(Weyerhaeuser Co. Project) 6.875%, 10/1/2008............................................. 6,000,000 6,739,380
Port Moses Lake Public Corp., PCR (Union Carbide Co. Project) 7.875%, 8/1/2006............... 2,100,000 2,318,106
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
WASHINGTON (CONTINUED)
Washington Health Care Facilities Authority, Revenue
(Yamika Valley Memorial Hospital Association) 7.25%, 1/1/2021............................ $ 3,500,000 $ 3,882,655
Washington Public Power Supply System, Revenue, Refunding (Nuclear Project Number 2)
7.375%, 7/1/2012......................................................................... 1,450,000 1,688,568
WEST VIRGINIA-1.1%
Kanawha County, IDR (Union Carbide Chemical and Plastics) 8%, 8/1/2020....................... 1,930,000 2,183,120
South Charleston, PCR, Refunding (Union Carbide Co. Project) 7.625%, 8/1/2005................ 4,500,000 5,153,490
West Virginia Water Development Authority (Loan Program II) 7%, 11/1/2031.................... 5,180,000 5,559,228
U.S. RELATED-.9%
Puerto Rico Highway and Transportation Authority, Highway Revenue
7.581%, 7/1/2003 (a)..................................................................... 10,000,000 10,062,500
--------------
TOTAL INVESTMENTS
(cost $1,059,591,840).................................................................... $1,136,802,725
==============
</TABLE>
<TABLE>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation IDR Industrial Development Revenue
COP Certificate of Participation LOC Letter of Credit
FGIC Financial Guaranty Insurance Corporation MBIA Municipal Bond Insurance Association
FHA Federal Housing Administration MFMR Multi-Family Mortgage Revenue
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
FSA Financial Security Assurance RRR Resources Recovery Revenue
HR Hospital Revenue SFMR Single Family Mortgage Revenue
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- ------- ----------------- -------------------
<S> <C> <C> <C>
AAA Aaa AAA 13.7%
AA Aa AA 17.0
A A A 23.2
BBB Baa BBB 36.4
BB Ba BB 1.1
B B B .9
Not Rated Not Rated Not Rated 7.7
------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security - the interest rate is subject to change
periodically.
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At February 28,
1994, these securities amounted to $25,139,125 or 2.0% of net assets.
(c) Non-income accruing security; interest payment in default. The valuation
of this security has been determined in good faith under the direction of
the Board of Directors.
(d) Secured by letters of credit.
(e) Fitch currently provides creditworthiness information for a limited amount
of investments.
See notes to financial statements.
<TABLE>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1994
<S> <C>
ASSETS:
Investments in securities, at value
(cost $1,059,591,840)-see statement.................................... $1,136,802,725
Cash....................................................................... 52,510,002
Receivable for investment securities sold.................................. 33,771,100
Interest receivable........................................................ 18,585,115
Receivable for subscriptions to Common Stock............................... 3,217
Prepaid expenses........................................................... 68,519
--------------
1,241,740,678
LIABILITIES:
Due to The Dreyfus Corporation............................................. $ 703,107
Payable for Common Stock redeemed.......................................... 42,148
Accrued expenses........................................................... 179,990 925,245
----------- --------------
NET ASSETS..................................................................... $1,240,815,433
==============
REPRESENTED BY:
Paid-in capital............................................................ $1,155,215,372
Accumulated undistributed net realized gain on investments................. 8,389,176
Accumulated net unrealized appreciation on investments-Note 3(b)........... 77,210,885
--------------
NET ASSETS at value applicable to 80,239,155 shares outstanding
(150 million shares of $.01 par value Common Stock authorized)............. $1,240,815,433
==============
NET ASSET VALUE, offering and redemption price per share
($1,240,815,433 / 80,239,155 shares)....................................... $15.46
======
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS YEAR ENDED FEBRUARY 28, 1994
<S> <C>
INVESTMENT INCOME:
INTEREST INCOME............................................................ $ 83,699,420
EXPENSES:
Management fee-Note 2(a)............................................... $ 7,048,554
Shareholder servicing costs-Note 2(b).................................. 3,410,304
Prospectus and shareholders' reports................................... 121,903
Custodian fees......................................................... 99,394
Registration fees...................................................... 75,520
Professional fees...................................................... 72,420
Directors' fees and expenses-Note 2(c)................................. 37,681
Miscellaneous.......................................................... 70,879
------------
10,936,655
Less-reduction in management fee due
to undertakings-Note 2(a).......................................... 374,898
------------
TOTAL EXPENSES................................................. 10,561,757
--------------
INVESTMENT INCOME-NET.......................................... 73,137,663
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3(a)................................. $23,416,114
Net realized gain on financial futures-Note 3(a)........................... 549,975
------------
NET REALIZED GAIN...................................................... 23,966,089
Net unrealized (depreciation) on investments............................... (20,709,885)
--------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................ 3,256,204
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 76,393,867
==============
</TABLE>
See notes to financial statements.
<TABLE>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED FEBRUARY 28,
--------------------------------
1993 1994
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net...................................................... $ 62,328,522 $ 73,137,663
Net realized gain on investments........................................... 11,291,692 23,966,089
Net unrealized appreciation (depreciation) on investments for the year..... 78,183,694 (20,709,885)
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... 151,803,908 76,393,867
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net...................................................... (62,059,828) (73,540,228)
Net realized gain on investments........................................... (10,216,553) (18,210,546)
-------------- --------------
TOTAL DIVIDENDS........................................................ (72,276,381) (91,750,774)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.............................................. 1,526,610,142 1,964,133,330
Dividends reinvested....................................................... 54,592,012 68,036,992
Cost of shares redeemed.................................................... (1,142,833,436) (2,014,289,167)
-------------- --------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS................. 438,368,718 17,881,155
-------------- --------------
TOTAL INCREASE IN NET ASSETS....................................... 517,896,245 2,524,248
NET ASSETS:
Beginning of year.......................................................... 720,394,940 1,238,291,185
-------------- --------------
End of year (including undistributed investment income-net
of $402,565 in 1993)................................................... $1,238,291,185 $1,240,815,433
============== ==============
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold................................................................ 101,645,908 124,762,916
Shares issued for dividends reinvested..................................... 3,627,885 4,309,637
Shares redeemed............................................................ (75,916,687) (127,518,879)
-------------- --------------
NET INCREASE IN SHARES OUTSTANDING..................................... 29,357,106 1,553,674
============== ==============
</TABLE>
See notes to financial statements.
GENERAL MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from information provided in the Fund's financial statements.
<TABLE>
FISCAL YEAR ENDED FEBRUARY,
----------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year...................... $13.49 $13.90 $14.02 $14.60 $15.74
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net................................... 1.03 1.08 1.06 .97 .90
Net realized and unrealized gain (loss) on investments.. .41 .12 .62 1.29 (.04)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.................... 1.44 1.20 1.68 2.26 .86
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net.................... (1.03) (1.08) (1.06) (.97) (.91)
Dividends from net realized gain on investments......... -- -- (.04) (.15) (.23)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS................................. (1.03) (1.08) (1.10) (1.12) (1.14)
------ ------ ------ ------ ------
Net asset value, end of year............................ $13.90 $14.02 $14.60 $15.74 $15.46
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 10.98% 9.04% 12.34% 16.13% 5.50%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. .28% -- .01% .41% .82%
Ratio of net investment income to average net assets.... 7.58% 7.83% 7.30% 6.46% 5.71%
Decrease reflected in above expense ratios due to
undertakings by the Manager......................... .89% .92% .75% .35% .03%
Portfolio Turnover Rate................................. 109.92% 50.18% 38.15% 64.98% 59.19%
Net Assets, end of year (000's Omitted)................. $108,846 $308,580 $720,395 $1,238,291 $1,240,815
</TABLE>
See notes to financial statements.
GENERAL MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a diversified open-end management investment company.
Dreyfus Service Corporation ("Distributor") acts as the distributor of the
Fund's shares, which are sold to the public without a sales load. The
Distributor is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager").
(A) PORTFOLIO VALUATION: The Fund's investments (excluding options
and financial futures on municipal and U.S. treasury securities) are valued
each business day by an independent pricing service ("Service") approved
by the Board of Directors. Investments for which quoted bid prices in the
judgment of the Service are readily available and are representative of
the bid side of the market are valued at the mean between the quoted bid
prices (as obtained by the Service from dealers in such securities) and
asked prices (as calculated by the Service based upon its evaluation of the
market for such securities). Other investments (which constitute a
majority of the portfolio securities) are carried at fair value as
determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general
market conditions. Options and financial futures on municipal and U.S.
treasury securities are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last
sales price on the national securities market on each business day.
Investments not listed on an exchange or the national securities market,
or securities for which there were no transactions, are valued at the
average of the most recent bid and asked prices. Bid price is used when no
asked price is available.
(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 premiums and, when
appropriate, discounts on investments, is earned from settlement date and
recognized on the accrual basis. Securities purchased or sold on a when-
issued or delayed-delivery basis may be settled a month or more after the
trade date.
(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 are normally declared
and paid annually, but the Fund may make distributions on a more frequent
basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, if any, 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, which can distribute tax
exempt dividends, by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from all, or substantially all, Federal income
taxes.
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 .55 of 1%
of the average daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, interest,
brokerage commissions and extraordinary expenses, exceed 1 1/2% of the
average value of the Fund's net assets for any full fiscal year. However,
the Manager had undertaken from March 1, 1993 through June 30, 1993 to
reduce the management fee paid by the Fund, to the extent that the Fund's
aggregate expenses (excluding certain expenses as described above)
exceeded specified annual percentages of the Fund's average daily net
assets. The reduction in management fees, pursuant to the undertakings,
amounted to $374,898 for the year ended February 28, 1994.
GENERAL MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The manager may modify the expense limitation percentages from time
to time, provided that the resulting expense reimbursement would not be
less than the amount required pursuant to the Agreement.
(B) On January 22, 1993, Fund shareholders approved the adoption of a
new Service Plan (the "Plan") pursuant to Rule 12b-1 under the Act.
Pursuant to the Plan, effective March 5, 1993, the Fund pays the
Distributor, at an annual rate of .20 of 1% of the value of the Fund's
average daily net assets, for costs and expenses in connection with
advertising, marketing and distributing the Fund's shares and for servicing
shareholder accounts. The Distributor may make payments to one or more
Service Agents (a securities dealer, financial institution, or other
industry professional) based on the value of the Fund's shares owned by
clients of the Service Agent. The Plan also separately provides for the
Fund to bear the costs of preparing, printing and distributing certain of
the Fund's prospectuses and statements of additional information and
costs associated with implementing and operating the Plan, not to exceed
the greater of $100,000 or .005 of 1% of the Fund's average daily net
assets for any full fiscal year.
Prior to March 5, 1993, the Fund's Service Plan ("prior Service Plan")
provided that the Fund reimburse either the Manager or the Distributor for
payments made to a Service Agent at an annual rate of .20 of 1% of the
average daily net asset value of Fund shares owned by clients of the
Service Agent. In addition the Fund bore the costs of preparing, printing
and distributing prospectuses and statements of additional information
and the costs associated with implementing and operating the prior
Service Plan.
For the year ended February 28, 1994, the Fund paid $2,579,757
pursuant to the Plan and the prior Service Plan.
During the year ended February 28, 1994, the Fund was charged an
aggregate of $85,992 by the Manager and the Distributor for certain
shareholder servicing costs.
(C) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each director
who is not an "affiliated person" receives an annual fee of $4,500 and an
attendance fee of $500 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory approvals
and approvals of the stockholders of the Manager and of Mellon. The merger
is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
NOTE 3-SECURITIES TRANSACTIONS:
(A) Purchases and sales of securities amounted to $1,931,191,092 and
$2,068,337,760, respectively, for the year ended February 28, 1994, and
consisted entirely of municipal bonds and short-term municipal
investments.
GENERAL MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund is engaged in trading financial futures contracts. The Fund is
exposed to market risk as a result of changes in the value of the
underlying financial instruments. Investments in financial futures require
the Fund to "mark to market" on a daily basis, which reflects the change
in the market value of the contract at the close of each day's trading.
Accordingly, variation margin payments are made or received to reflect
daily unrealized gains or losses. When the contracts are closed, the Fund
recognizes a realized gain or loss. These investments require initial
margin deposits with a custodian, which consist of cash or cash
equivalents, up to approximately 10% of the contract amount. The amount
of these deposits is determined by the exchange or Board of Trade on
which the contract is traded and is subject to change. For the year ended
February 28, 1994, there were no financial futures contracts outstanding.
(B) At February 28, 1994, accumulated net unrealized appreciation on
investments was $77,210,885, consisting of $83,732,871 gross
unrealized appreciation and $6,521,986 gross unrealized depreciation.
At February 28, 1994, 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).
GENERAL MUNICIPAL BOND FUND, INC.
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
GENERAL MUNICIPAL BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities
of General Municipal Bond Fund, Inc., including the statement of
investments, as of February 28, 1994, 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. Our procedures included
confirmation of securities owned as of February 28, 1994 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 Municipal Bond Fund, Inc., at February 28, 1994, 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 Signature Logo)
New York, New York
April 6, 1994
GENERAL MUNICIPAL BOND FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the
following designations regarding its fiscal year ended February 28, 1994:
--- All the dividends paid from investment income-net are "exempt-
interest dividends" (not generally subject to regular Federal income tax).
--- The Fund hereby designates $.0150 per share as a long-term capital
gain distribution of the $.0317 per share paid on September 30, 1993. The
Fund also designates $.0465 per share as a long-term capital gain
distribution of the $.1935 per share paid on December 9, 1993.
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1994 calendar year
on Form 1099-DIV which will be mailed by January 31, 1995.
(Dreyfus `D' Logo)
GENERAL MUNICIPAL
BOND FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A 106AR942
(Dreyfus Logo)
General Municipal
Bond Fund, Inc.
Annual Report
February 28, 1994
(Dreyfus Lion Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
GENERAL MUNICIPAL BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
_____________________________________________
| | LEHMAN | |
| | BROTHERS | GENERAL |
| PERIOD | MUNICIPAL | MUNICIPAL |
| | BOND INDEX * | BOND FUND |
|--------------|---------------|-------------|
| 3/21/84 | 10,000 | 10,000 |
| 5/31/84 | 9,421 | 9,753 |
| 8/31/84 | 10,351 | 10,188 |
| 11/30/84 | 10,563 | 10,458 |
| 2/28/85 | 11,099 | 10,891 |
| 5/31/85 | 12,007 | 11,806 |
| 8/31/85 | 12,072 | 12,022 |
| 11/30/85 | 12,804 | 12,549 |
| 2/28/86 | 14,220 | 13,931 |
| 5/31/86 | 14,003 | 13,712 |
| 8/31/86 | 14,859 | 14,644 |
| 11/30/86 | 15,454 | 15,166 |
| 2/28/87 | 15,954 | 15,528 |
| 5/31/87 | 14,918 | 14,032 |
| 8/31/87 | 15,547 | 14,475 |
| 11/30/87 | 15,420 | 14,047 |
| 2/29/88 | 16,372 | 15,080 |
| 5/31/88 | 16,257 | 14,935 |
| 8/31/88 | 16,617 | 15,328 |
| 11/30/88 | 17,059 | 15,807 |
| 2/28/89 | 17,389 | 16,309 |
| 5/31/89 | 18,128 | 17,208 |
| 8/31/89 | 18,442 | 17,433 |
| 11/30/89 | 18,938 | 17,790 |
| 2/28/90 | 19,172 | 18,099 |
| 5/31/90 | 19,455 | 18,395 |
| 8/31/90 | 19,626 | 18,609 |
| 11/30/90 | 20,395 | 19,250 |
| 2/28/91 | 20,940 | 19,735 |
| 5/31/91 | 21,416 | 20,416 |
| 8/31/91 | 21,940 | 21,117 |
| 11/30/91 | 22,489 | 21,635 |
| 2/29/92 | 23,031 | 22,171 |
| 5/31/92 | 23,518 | 22,923 |
| 8/31/92 | 24,389 | 23,911 |
| 11/30/92 | 24,743 | 24,082 |
| 2/28/93 | 26,201 | 25,746 |
| 5/31/93 | 26,332 | 25,758 |
| 8/31/93 | 27,366 | 27,064 |
| 11/30/93 | 27,486 | 27,036 |
| 2/28/94 | 27,652 | 27,163 |
|____________________________________________|
________________________________________________________
| GENERAL MUNICIPAL BOND FUND |
|-------------------------------------------------------|
| AVERAGE ANNUAL TOTAL RETURNS ENDED ON 2/28/94 |
|-------------------------------------------------------|
| | | |
| 1 YEAR | 5 YEAR | SINCE INCEPTION |
| | | (3/21/84) |
|--------------|---------------|------------------------|
| 5.50%| 10.74%| 10.57% |
|--------------|---------------|------------------------|
