GENERAL MUNICIPAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the General Municipal
Bond Fund, Inc. For its semi-annual reporting period ended August 31, 1995,
your Fund produced a total return, including bond price changes and interest
income, of 5.22% per share.* Income dividends exempt from Federal personal
income taxes of approximately $.416 per share were paid.** This is equivalent
to an annualized tax-free distribution rate per share of 5.58%.+
The Federal Reserve Board relaxed its policy of monetary restraint in
July of 1995 when it lowered the Fed Funds rate on July 6th. This reduction
ended the upward pressure on short-term rates which had prevailed since the
beginning of the reporting period. Despite the monetary restraint that
existed, long-term rates began their decline early in the year. The Fed's
policy of restraint was based on concern about inflation given the strong
economic news then prevailing. But in July these same reports indicated a
significant weakening trend in the economy. The July decline in the Fed Funds
rate signaled that economic growth issues outweighed, for a time, Fed fears
of a resurgence of inflation.
THE ECONOMY
Economic reports indicated lagging home and auto sales and a decline in
new home construction from earlier this year. Furthermore, rising business
inventories (a frequent harbinger of a business slowdown) and weakening
retail sales lent additional credibility to the case for easier credit
conditions. By midyear, jobless claims were also on the rise.
A word about inflation: despite strong economic growth at the beginning
of the reporting period, inflation remained in check. We believe a
continuation of this moderating trend for prices appears likely, particularly
if the economy remains sluggish. This could be good news for bond investors
since easing inflation often results in falling interest rates. Declining
interest rates, often a corollary to slow business conditions, cause bond
prices to rise. Although we strive to maintain a high level of current tax
exempt income for the Fund, we always are very concerned with credit quality,
so we are mindful of the potential erosion in bond quality if the economy
slips back into a recession. We follow a policy that stresses strong credit
quality in the portfolio, a policy which seeks to protect bond values and
income streams. As you know, we manage portfolios with a long-term
perspective, aware that market conditions can change rapidly.
MARKET ENVIRONMENT
The municipal bond market, buffeted by six interest rate hikes by the
Federal Reserve Board in 1994, recovered strongly in 1995. Weaker than
expected December sales figures tumbled rates and this decline persisted
throughout the remainder of the reporting period. This summer's rate cut
confirmed what declining long-term interest rates had indicated all
year . . . that business conditions were weaker than monetary policymakers
thought. If economic conditions remain sluggish, and Congress is able to arrive
at an acceptable budget accord, we believe further Fed easing is likely. We
believe this indicates a rather favorable outlook for bond markets in general.
We are certainly pleased and encouraged by the good performance of late in the
bond market and by the Fund; however, we are wary that this bond market strength
may be counting too much on continued low inflation. Thus, while we remain
fully invested in this improving market, we are alert to the stimulatory
effects of easing monetary policy and are watchful for any signs of
rekindling inflation. Our primary task - to maximize current income exempt
from Federal income taxes to the extent consistent with the preservation of
capital - continues to underscore our portfolio management decisions.
While the municipal market and the Fund have performed well for the past
six months, results for municipal securities have been trailing the other
fixed income markets. The prospect of tax reform
appears to be limiting the enthusiasm for tax exempt securities. Since April,
when serious flat tax and consumption tax proposals began to surface, the
municipal rally has lagged, resulting in an increase in municipal yields as a
percentage of comparable taxable bond yields. Today, long-term municipal
bonds are yielding nearly 90% of U.S. Treasuries, which is a greater yield
ratio than existed before the onset of talk about tax reform. While it could
be years before an actual change in the tax code is adopted, the market's
reaction so early in the proposal cycle suggests that the ultimate
legislation, if any, may have a less radical effect on the market than
feared.
THE PORTFOLIO
As indicated in our last letter to shareholders, we lengthened the
duration of the Fund earlier this year in response to a perceived slowing of
the economy. At this time we have already begun shifting to a more defensive
posture. Market yields have dropped significantly. While we don't envision a
major sell-off, we believe it prudent to lock in a portion of the returns
achieved thus far in 1995; the risk to this strategy is that future gains are
limited should the market rally further. In summary, management is hoping to
enhance the Fund's overall credit quality, limit price volatility and
increase income when possible.
The issuance of new tax exempt bonds continues at a lackluster pace
while, at the same time, a substantial amount of outstanding bonds are being
retired. Therefore, our strategies are influenced and their implementations
limited, at times, by the fact that there exists a limited inventory of
securities from which to choose.
Our primary tasks - to protect principal, maintain liquidity and
distribute a high level of current tax exempt income to you - continue to
underscore our portfolio management decisions. The high level of volatility
exhibited by the market in recent years underscores the need to maintain a
disciplined and long-term focus. Solid market performance thus far in 1995
has rewarded the patient investor.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
September 15, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
+ Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the
net asset value per share at the end of the period.
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-89.6% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
ALABAMA-1.1%
Alabama Housing Finance Authority, SFMR 6.40%, 10/1/2020 (Insured; FNMA).... $ 6,000,000 $ 6,063,120
Shelby County Board of Education, Capital Outlay, Refunding, School Warrants
5.875%, 2/1/2017 (Insured; AMBAC)....................................... 4,250,000 4,247,153
ARIZONA-.5%
Navajo County Pollution Control Corp., Revenue (Arizona Public Service Co.)
5.50%, 8/15/2028 (Insured; AMBAC)....................................... 2,250,000 2,141,730
Phoenix, Refunding 6.25%, 7/1/2017.......................................... 2,800,000 2,972,564
CALIFORNIA-1.2%
Metropolitan Water District of Southern California, Waterworks Revenue
5.75%, 7/1/2012 (Insured; MBIA)......................................... 5,515,000 5,528,567
San Marcos Public Facilities Authority, Public Improvement Revenue, Refunding
(Civic Center) 6.15%, 8/1/2013.......................................... 5,500,000 5,348,530
COLORADO-8.1%
Arapahoe County Capital Improvement Trust Fund, Highway Revenue
Zero Coupon, 8/31/2015.................................................. 50,000,000 11,690,000
Colorado Housing Finance Authority, Single Family Program 7.55%, 8/1/2023... 3,560,000 3,736,398
Denver City and County:
Airport System Revenue:
7.25%, 11/15/2007 (Insured; MBIA)..................................... 6,250,000 7,077,250
7.25%, 11/15/2012..................................................... 5,100,000 5,426,502
8.25%, 11/15/2012..................................................... 4,505,000 5,039,518
8%, 11/15/2017........................................................ 3,000,000 3,215,700
7.75%, 11/15/2021..................................................... 6,760,000 7,380,906
7.25%, 11/15/2023..................................................... 5,185,000 5,443,161
8.75%, 11/15/2023..................................................... 3,250,000 3,777,702
7%, 11/15/2025........................................................ 5,100,000 5,191,392
8%, 11/15/2025........................................................ 5,250,000 5,803,770
Special Facilities Airport Revenue (United Airlines Project) 6.875%, 10/1/2032 6,235,000 6,286,750
Lakewood, Multi-Family Housing Revenue, Mortgage
6.70%, 10/1/2036 (Insured; FHA)......................................... 5,000,000 5,135,100
CONNECTICUT-.3%
Connecticut Housing Finance Authority (Housing Mortgage Finance Program)
6.50%, 5/15/2027........................................................ 2,450,000 2,467,640
DISTRICT OF COLUMBIA-.8%
District of Columbia, HR, Refunding (National Rehabilitation Hospital -
Medlantic)
7.10%, 11/1/2011 (Insured; MBIA)........................................ 7,000,000 7,560,980
FLORIDA-2.5%
Palm Beach County, Solid Waste IDR (Osceola Power Ltd. Partnership)
6.95%, 1/1/2022......................................................... 3,000,000 2,956,830
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
FLORIDA (CONTINUED)
Pinellas County Housing Facilities Authority, SFMR (Multi County Program)
6.70%, 2/1/2028 (Insured; FHA).......................................... $ 7,500,000 $ 7,747,200
Polk County Industrial Development Authority, IDR 7.525%, 1/1/2015.......... 12,400,000 12,954,280
GEORGIA-1.7%
Fulton County, School District Refunding 6.375%, 5/1/2016................... 5,900,000 6,334,535
State of Georgia 5.70%, 7/1/2011............................................ 4,470,000 4,591,897
Macon-Bibb County Industrial Authority, Industrial Revenue (Weyerhaeuser Co.
Project)
9%, 10/1/2007........................................................... 1,000,000 1,336,610
Wayne County Development Authority, PCR, Refunding (ITT Rayonier Inc.
Project)
6.10%, 11/1/2007........................................................ 3,205,000 3,424,222
HAWAII-.5%
State of Hawaii 5.90%, 1/1/2006............................................. 4,155,000 4,418,095
IDAHO-.4%
Idaho Housing Agency, Housing Revenue (Blue Meadows Project)
7.20%, 7/1/2033 (Insured; FHA).......................................... 3,500,000 3,656,800
ILLINOIS-7.2%
Chicago, Gas Supply Revenue (People's Gas Light and Coke Co. Project):
8.10%, 5/1/2020......................................................... 3,000,000 3,400,590
5.75%, 12/1/2023........................................................ 7,250,000 6,716,980
Chicago-O'Hare International Airport, Special Facility Revenue:
(American Airlines Inc. Project) 7.875%, 11/1/2025...................... 2,725,000 2,921,036
(United Airlines Inc.):
8.40%, 5/1/2018....................................................... 2,845,000 3,098,120
8.50%, 5/1/2018....................................................... 2,500,000 2,734,175
8.85%, 5/1/2018....................................................... 6,460,000 7,341,209
Chicago Park District, Capital Improvement 6.05%, 1/1/2013 (Insured; FGIC).. 4,250,000 4,319,190
State of Illinois, Dedicated Tax Revenue (Civic Center)
6.25%, 12/15/2020 (Insured; AMBAC)...................................... 3,000,000 3,146,850
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers Facility Acquisition) 8.75%, 3/1/2010 2,220,000 2,395,158
Illinois Health Facilities Authority, Revenue:
(Beverly Farm Foundation) 9.125%, 12/15/2015............................ 2,000,000 2,167,200
(Residential Centers Inc.) 8.50%, 8/15/2016............................. 5,925,000 5,990,945
Robbins, RRR (Robbins Resource Recovery Partners) 9.25%, 10/15/2014......... 13,000,000 14,305,460
Village of Romeoville 8.375%, 1/1/2010...................................... 7,495,000 8,376,112
INDIANA-.8%
Fishers, Economic Development Revenue, First Mortgage (United Student Funds Inc.)
8.375%, 9/1/2014........................................................ 2,000,000 2,134,860
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
INDIANA (CONTINUED)
Indianapolis Airport Authority, Special Facility Revenue (United Airlines
Project)
6.50%, 11/15/2031....................................................... $ 5,000,000 $ 4,890,400
KANSAS-3.1%
Kansas City, Utility System Revenue, Refunding and Improvement:
6.25%, 9/1/2014 (Insured; FGIC)......................................... 9,790,000 10,209,306
6.375%, 9/1/2023 (Insured; FGIC)........................................ 17,415,000 18,264,155
KENTUCKY-5.6%
Kenton County Airport Board, Airport Revenue
(Special Facilities - Delta Airlines Project):
7.50%, 2/1/2012....................................................... 21,550,000 22,728,569
7.50%, 2/1/2020....................................................... 3,000,000 3,164,070
7.125%, 2/1/2021...................................................... 6,130,000 6,318,865
6.125%, 2/1/2022...................................................... 9,000,000 8,478,810
City of Mount Sterling, Revenue (Kentucky League of Cities Funding Trust
Lease Program) 6.10%, 3/1/2018.............................................. 5,500,000 5,574,195
Pendleton County, Multi-County Lease Revenue (Kentucky Association of
Counties Leasing Trust Program) 6.40%, 3/1/2019............................. 6,000,000 6,300,240
LOUISIANA-4.9%
Louisiana Public Facilities Authority, HR:
(Louisiana Association of Independent Colleges and Universities
Facilities Loan Program) 7%, 12/1/2017...................................... 6,195,000 6,428,737
Refunding (Our Lady of the Lake Regional Medical Center Project)
6.25%, 11/28/2014 (Insured; MBIA)..................................... 26,000,000 26,276,640
Parish of Natchitoches, SWDR (Williamette Industries Project)
5.875%, 12/1/2023....................................................... 6,920,000 6,612,198
Parish of Saint James, SWDR (Freeport-McMoRan Partnership Project)
7.70%,10/1/2022......................................................... 4,140,000 4,234,392
Parish of West Feliciana, PCR (Gulf States Utilities Co. Project)
7.70%, 12/1/2014........................................................ 2,000,000 2,133,080
MAINE-1.1%
Maine Finance Authority, SWDR (Boise Cascade Corp. Project) 7.90%, 6/1/2015. 6,900,000 7,300,131
Maine Public Utility Financing Bank, Public Utility Revenue (Maine Public
Services Co. Project) 7.875%, 4/1/2021 (LOC; Barclays Bank plc) (a)......... 2,750,000 2,869,983
MARYLAND-2.1%
Maryland Community Development Administration, Department of Housing and
Community Development (Single Family Program) 6.55%, 4/1/2026........... 10,000,000 10,137,000
Montgomery County Housing Opportunities Commission, MFMR
7.375%, 7/1/2032........................................................ 2,635,000 2,781,058
Prince Georges County, PCR, Refunding (Potomac Electric Project) 5.75%, 3/15/2010 6,250,000 6,367,125
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
MASSACHUSETTS-2.3%
Massachusetts Health and Educational Facilities Authority, Revenue
(New England Deaconess Hospital Issue) 7.20%, 4/1/2022.................. $ 10,070,000 $ 10,627,576
Massachusetts Housing Finance Agency, Housing Revenue, Single Family
6.65%, 12/1/2027........................................................ 7,000,000 7,118,930
Massachusetts Port Authority, Special Project Revenue (Harborside Hyatt
Project) 10%, 3/1/2026...................................................... 3,000,000 3,360,030
MICHIGAN-3.8%
Flint Tax Increment Finance Authority, Refunding 6.125%, 6/1/2006........... 3,900,000 4,024,410
Michigan Hospital Finance Authority, HR, Refunding (Genesys Health System):
8.10%, 10/1/2013........................................................ 2,000,000 2,150,140
8.125%, 10/1/2021....................................................... 4,910,000 5,288,414
7.50%, 10/1/2027........................................................ 8,000,000 8,192,240
Michigan Strategic Fund,
PCR, Refunding (General Motors Corp.) 6.20%, 9/1/2020................... 10,000,000 10,041,900
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 5,349,650
MISSISSIPPI-.5%
Clairborne County, PCR, Refunding (System Energy Resources Inc.)
7.30%, 5/1/2025......................................................... 5,000,000 5,150,400
NEBRASKA-1.0%
Nebraska Higher Education Loan Program Inc., Revenue 6.40%, 6/1/2013........ 9,500,000 9,589,300
NEVADA-2.3%
Clark County, IDR (Southwest Gas Corp.) 6.50%, 12/1/2033.................... 16,000,000 15,775,680
State of Nevada, Refunding (Colorado River Commission - Hoover) 6.60%, 10/1/2016... 5,000,000 5,268,600
NEW HAMPSHIRE-2.6%
New Hampshire Higher Educational and Health Facilities Authority, Revenue
(Crotched Mountain Rehabilitation Center) 7.75%, 1/1/2020............... 2,200,000 2,398,154
New Hampshire Housing Finance Authority, Single Family Residential Mortgage:
7.75%, 7/1/2023......................................................... 7,035,000 7,474,125
7.70%, 7/1/2029......................................................... 4,625,000 4,859,858
New Hampshire Industrial Development Authority, PCR
(Public Service Company of New Hampshire Project) 7.65%, 5/1/2021....... 9,250,000 9,798,248
NEW JERSEY-2.5%
New Jersey Economic Development Authority:
Market Transition Facility Revenue, Senior Lien
5.80%, 7/1/2009 (Insured; MBIA)....................................... 7,730,000 7,910,341
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW JERSEY (CONTINUED)
New Jersey Economic Development Authority (continued):
Solid Waste Disposal Facility Revenue (Garden State Paper Co. Inc.
Project)
7.125%, 4/1/2022 (Guaranteed; Media General, Inc.,
LOC; Toronto-Dominion Bank) (a)....................................... $ 4,500,000 $ 4,853,070
New Jersey Transportation Trust Fund Authority, Transportation System,
Refunding
6.50%, 6/15/2011 (Insured; MBIA)........................................ 10,000,000 11,000,500
NEW YORK-8.6%
New York City Industrial Development Agency, Special Facility Revenue:
(American Airlines Inc. Project) 8%, 7/1/2020........................... 1,325,000 1,414,385
(Terminal One Group Association Project):
6%, 1/1/2015.......................................................... 10,000,000 9,698,800
6.125%, 1/1/2024...................................................... 5,000,000 4,852,400
New York State Dormitory Authority, Revenue:
(City University System) 5.75%, 7/1/2009................................ 7,000,000 6,888,000
(State University Educational Facilities):
5.375%, 5/15/2007 (Insured; FGIC)..................................... 6,500,000 6,649,760
7.50%, 5/15/2013...................................................... 2,500,000 2,914,250
Refunding 5.875%, 5/15/2011........................................... 10,000,000 9,862,900
New York State Energy Research and Development Authority, Electric Facilities
Revenue:
(Consolidated Edison Co. Inc. Project) 7.125%, 12/1/2029................ 4,000,000 4,397,720
(Long Island Lighting Co.):
7.15%, 9/1/2019....................................................... 6,785,000 6,876,530
7.15%, 6/1/2020....................................................... 11,500,000 11,655,135
7.15%, 12/1/2020...................................................... 6,000,000 6,080,940
6.90%, 8/1/2022....................................................... 2,945,000 2,954,777
New York State Urban Development Corp., Revenue
(Correctional Capital Facilities) 5.375%, 1/1/2023...................... 6,600,000 5,815,920
NORTH DAKOTA-1.1%
North Dakota Housing Finance Agency, SFMR:
7.30%, 7/1/2024......................................................... 4,660,000 4,882,422
7.75%, 7/1/2024 (Insured; MBIA)......................................... 5,185,000 5,519,640
OHIO-.6%
Cleveland, Parking Facilities Improvement Revenue 8.10%, 9/15/2022.......... 5,300,000 5,620,226
OKLAHOMA-3.3%
McGee Creek Authority, Water Revenue 6%, 1/1/2013 (Insured; MBIA)........... 6,025,000 6,282,750
Trustees of the Tulsa Municipal Airport Trust, Revenue
(American Airlines Inc. Project):
9.50%, 6/1/2020....................................................... 1,000,000 1,033,650
7.375%, 12/1/2020 (Guaranteed; AMR Corp.)............................. 9,850,000 10,288,522
7.60%, 12/1/2030...................................................... 12,000,000 12,724,560
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
PENNSYLVANIA-6.9%
Borough of Langhorne Manor Higher Education and Health Authority, HR
(The Lower Bucks Hospital) 7.30%, 7/1/2012.............................. $ 3,400,000 $ 3,379,974
Lehigh County General Purpose Authority, Revenue (Wiley House) 9.50%, 11/1/2016 3,500,000 3,710,770
Montgomery County 6.10%, 10/15/2025......................................... 6,000,000 6,041,340
Montgomery County Higher Education and Health Authority, Revenue
(Northwestern Corp.) 8.50%, 6/1/2016.................................... 3,000,000 3,138,330
Pennsylvania Convention Center Authority, Revenue, Refunding 6.75%, 9/1/2019 2,500,000 2,576,300
Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue
(Philadelphia Funding Program):
5.45%, 6/15/2008 (Insured; FGIC)...................................... 12,595,000 12,665,280
5.625%, 6/15/2023 (Insured; MBIA)..................................... 4,000,000 3,834,400
Philadelphia Hospitals and Higher Education Facilities Authority, HR
Graduate Health Systems Obligation 7.25%, 7/1/2018...................... 11,000,000 11,441,540
Philadelphia, Water and Wastewater Revenue, Refunding
5.625%, 6/15/2008 (Insured; FSA)........................................ 7,570,000 7,767,350
Schuykill County Industrial Development Authority, RRR
(Schuykill Energy Resources Inc.) 6.50%, 1/1/2010....................... 9,710,000 9,810,693
RHODE ISLAND-2.3%
Rhode Island Depositors Economic Protection Corp., Special Obligation
Refunding
5.875%, 8/1/2011 (Insured; MBIA)........................................ 12,885,000 13,104,560
Rhode Island Housing and Mortgage Finance Corp.:
(Homeownership E-1) 7.55%, 10/1/2022.................................... 4,305,000 4,579,013
(Rental Housing Program) 7.95%, 10/1/2020............................... 3,195,000 3,384,144
SOUTH CAROLINA-.5%
Georgetown County, Hospital Facilities Revenue, Refunding (Georgetown
Memorial)
7.25%, 11/1/2017 (Insured; AMBAC)....................................... 4,000,000 4,405,840
TENNESSEE-.5%
McMinn County Industrial Development Board, PCR (Calhoun Newsprint Co.
Project)
7.625%, 3/1/2016........................................................ 4,500,000 4,758,525
TEXAS-5.7%
Alliance Airport Authority Inc., Special Facilities Revenue
(American Airlines Inc. Project):
7%, 12/1/2011 (Guaranteed; AMR Corp.)................................. 10,000,000 10,454,700
7.50%, 12/1/2029...................................................... 14,805,000 15,569,382
Bell County Health Facilities Development Corp., Revenue
(Southern Healthcare-Southview) 10.50%, 3/1/2020........................ 2,905,000 3,239,075
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
TEXAS (CONTINUED)
Dallas - Fort Worth International Airport Facility Improvement Corp., Revenue
(Delta Airlines Inc.):
7.625%, 11/1/2021..................................................... $ 2,200,000 $ 2,334,618
7.125%, 11/1/2026..................................................... 5,000,000 5,120,400
Dickens County, Lease Obligation (Jail and Detention Facility Project)
8.875%, 4/1/2005........................................................ 3,950,000 4,229,581
Gulf Coast Waste Disposal Authority, SWDR, (Champion International Corp.
Project)
7.25%, 4/1/2017......................................................... 4,735,000 4,994,951
Montgomery County Health Facilities Development Corp., Hospital Mortgage
Revenue
(Woodlands Medical Center Project) 8.85%, 8/15/2014..................... 6,825,000 7,417,410
UTAH-1.0%
Carbon County, SWDR, Refunding (Sunnyside Cogeneration) 9.25%, 7/1/2018..... 8,000,000 8,738,720
Utah Housing Finance Agency, Single Family Mortgage 7.70%, 7/1/2015......... 1,060,000 1,107,774
WASHINGTON-1.0%
Chelan County Public Utility District Number 001, Consolidated Revenue
(Chelan Hydroelectric):
5.70%, 7/1/2008....................................................... 2,150,000 2,175,198
7.50%, 7/1/2011....................................................... 4,155,000 4,694,319
Port Moses Lake Public Corp., PCR (Union Carbide Co. Project) 7.875%, 8/1/2006 2,100,000 2,246,979
WEST VIRGINIA-.2%
Kanawha County, IDR (Union Carbide Chemical and Plastics) 8%, 8/1/2020...... 1,930,000 2,079,884
U.S. RELATED-1.0%
Guam Government:
5.75%, 9/1/2004......................................................... 5,480,000 5,438,297
5.90%, 9/1/2005......................................................... 3,800,000 3,782,976
--------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $798,321,272)..................................................... $833,938,917
==============
SHORT-TERM MUNICIPAL INVESTMENTS-10.4%
FLORIDA-1.9%
Hillsborough County Industrial Development Authority, PCR, VRDN
(Tampa Electric Co. Project) 3.70% (Guaranteed; Tampa Electric Co.) (b). $ 9,400,000 $ 9,400,000
Saint Lucie County, PCR, Refunding, VRDN (Florida Power and Light Co.
Project)
3.40% (Guaranteed; Florida Power and Light Co.) (b)..................... 8,395,000 8,395,000
LOUISIANA-1.1%
Parish of Calcasieu Industrial Development Board, Environmental Revenue, VRDN
(Citgo Petroleum Corp. Project.) 3.80% (LOC; Banque Nationale de Paris) (a,b) 10,000,000 10,000,000
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
MARYLAND-.1%
Northeast Maryland Waste Disposal Authority, RRR, Refunding, VRDN
(Harford County) 3.40% (Insured; AMBAC, SBPA; Credit Local de France) (b) $ 600,000 $ 600,000
MASSACHUSETTS-.6%
Massachusetts Industrial Finance Agency, Revenue, Refunding, VRDN
(Showa Women's Institute, Inc.) 3.50% (LOC; Fuji Bank) (a,b)............ 5,500,000 5,500,000
MICHIGAN-1.4%
Michigan Strategic Fund, Limited Obligation Revenue, VRDN
(Coil Center Corp. Project) 4.70% (LOC; Tokai Bank) (a,b)............... 1,000,000 1,000,000
Midland County Economic Development Corp., Economic Development Limited
Obligation Revenue, VRDN (Dow Chemical Co. Project)
3.50% (Guaranteed; Dow Chemical Co.) (b)................................ 12,000,000 12,000,000
MISSISSIPPI-1.2%
Jackson County, Port Facility Revenue, Refunding, VRDN
(Chevron USA Inc. Project) 3.55% (Guaranteed; Chevron USA Inc.) (b)..... 11,700,000 11,700,000
NEW JERSEY-.4%
New Jersey Turnpike Authority, Turnpike Revenue, Refunding, VRDN
3.05% (Insured; FGIC, SBPA; Societe Generale) (b)....................... 3,500,000 3,500,000
NEW YORK-1.7%
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue, VRDN 3.60% (Insured; FGIC) (b)................................. 13,600,000 13,600,000
New York Energy Research and Development Authority, PCR, VRDN
(New York Electric and Gas) 3.45% (LOC; Union Bank of Switzerland) (a,b) 2,600,000 2,600,000
PENNSYLVANIA-.6%
Allegheny County Hospital Development Authority, Revenue, VRDN
(Health Center - Presbyterian) 3.70% (Insured; MBIA, SBPA; Credit Suisse) (b) 1,000,000 1,000,000
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue, VRDN
3.75% (LOC; Student Loan Marketing Association) (a,b)................... 4,500,000 4,500,000
WASHINGTON-.2%
Washington Health Care Facilities Authority, Revenue, VRDN
(Sisters Providence) 3.40% (SBPA; Morgan Guaranty Trust Co.) (b)........ 2,100,000 2,100,000
WYOMING-1.2%
Sublette County, PCR, VRDN (Exxon Corp. Project)
3.50% (Guaranteed; Exxon Corp.) (b)..................................... 11,000,000 11,000,000
---------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $96,895,000)...................................................... $ 96,895,000
===============
TOTAL INVESTMENTS-100.0%
(cost $895,216,272)..................................................... $930,833,917
===============
</TABLE>
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation MFMR Multi-Family Mortgage Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FHA Federal Housing Administration RRR Resources Recovery Revenue
FNMA Federal National Mortgage Association SBPA Standby Bond Purchase Agreement
FSA Financial Security Assurance SFMR Single-Family Mortgage Revenue
HR Hospital Revenue SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- ---------- ------------------- ---------------------------
<S> <C> <C> <C>
AAA Aaa AAA 20.6%
AA Aa AA 11.1
A A A 9.8
BBB Baa BBB 29.0
BB Ba BB 10.9
F1 Mig1 SP1 10.4
Not Rated (d) Not Rated (d) Not Rated (d) 8.2
------------------
100.0%
==================
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) Securities which, while not rated by Fitch, Moody's or Standard and
Poor's, have been determined by the Manager to be of comparable quality
to those rated securities in which the Fund may invest.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $895,216,272)-see statement..................................... $930,833,917
Receivable for investment securities sold............................... 18,976,884
Interest receivable..................................................... 15,376,020
Prepaid expenses........................................................ 47,933
--------------
965,234,754
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 431,758
Due to Distributor...................................................... 157,003
Due to Custodian........................................................ 1,585,856
Payable for investment securities purchased............................. 12,767,250
Payable for Common Stock redeemed....................................... 9,292
Accrued expenses........................................................ 210,761 15,161,920
---------------- --------------
NET ASSETS.................................................................. $950,072,834
==============
REPRESENTED BY:
Paid-in capital......................................................... $917,415,387
Accumulated net realized capital losses and distribution in excess of
net realized gain on investments...................................... (2,960,198)
Accumulated net unrealized appreciation on investments-Note 3(b)........ 35,617,645
-------------
NET ASSETS at value applicable to 64,278,605 outstanding shares of Common
Stock, equivalent to $14.78 per share (150 million shares of $.01 par
value authorized)....................................................... $950,072,834
==============
See independent accountants' review report and notes to financial statements.
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED AUGUST 31, 1995 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $28,995,633
EXPENSES:
Management fee-Note 2(a).............................................. $2,445,076
Shareholder servicing costs-Note 2(b)................................. 1,164,295
Professional fees..................................................... 65,462
Custodian fees........................................................ 43,426
Registration fees..................................................... 36,589
Prospectus and shareholders' reports.................................. 30,483
Directors' fees and expenses-Note 2(c)................................ 27,377
Miscellaneous......................................................... 119,425
----------------------
TOTAL EXPENSES.................................................. 3,932,133
--------------
INVESTMENT INCOME-NET........................................... 25,063,500
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3(a).............................. $1,951,908
Net realized gain on financial futures-Note 3(a)........................ 51,488
---------------
NET REALIZED GAIN..................................................... 2,003,396
Net unrealized appreciation on investments.............................. 22,339,637
---------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 24,343,033
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $49,406,533
===============
See independent accountants' review report and notes to financial statements.
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
FEBRUARY 28, AUGUST 31, 1995
1995 (UNAUDITED)
-------------------- -----------------
OPERATIONS:
Investment income-net............................................. $ 57,666,000 $ 25,063,500
Net realized gain (loss) investments.............................. (4,959,759) 2,003,396
Net unrealized appreciation (depreciation) on investments for the period (63,932,877) 22,339,637
-------------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS. (11,226,636) 49,406,533
-------------------- -----------------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net........................................ (57,666,000) (25,063,500)
From net realized gain on investments............................. (8,389,176) ----
In excess of net realized gain on investments..................... (3,835) ----
-------------------- -----------------
TOTAL DIVIDENDS................................................. (66,059,011) (25,063,500)
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 1,520,860,174 1,263,833,723
Dividends reinvested.............................................. 46,870,459 17,290,613
Cost of shares redeemed........................................... (1,796,983,645) (1,289,671,309)
--------------------- -----------------
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........ (229,253,012) (8,546,973)
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... (306,538,659) 15,796,060
NET ASSETS:
Beginning of period............................................... 1,240,815,433 934,276,774
-------------------- -----------------
End of period .................................................... $ 934,276,774 $ 950,072,834
==================== =================
SHARES SHARES
---------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 106,215,275 86,437,291
Shares issued for dividends reinvested............................ 3,273,509 1,179,843
Shares redeemed................................................... (125,075,831) (87,990,637)
---------------- ---------------
NET (DECREASE) IN SHARES OUTSTANDING............................ (15,587,047) (373,503)
================ ===============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
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 period indicated. This
information has been derived from the Fund's financial statements.
SIX MONTHS ENDED
FISCAL YEAR ENDED FEBRUARY, AUGUST 31, 1995
----------------------------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
------- -------- ------- ------- ------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $13.90 $14.02 $14.60 $15.74 $15.46 $14.45
------- -------- ------- ------- ------- -------------
INVESTMENT OPERATIONS:
Investment income-net................. 1.08 1.06 .97 .90 .86 .42
Net realized and unrealized gain (loss)
on investments...................... .12 .62 1.29 (.04) (.89) .33
------- -------- ------- ------- ------- -------------
TOTAL FROM INVESTMENT OPERATIONS.... 1.20 1.68 2.26 .86 (.03) .75
------- -------- ------- ------- ------- -------------
DISTRIBUTIONS:
Dividends from investment income-net.. (1.08) (1.06) (.97) (.91) (.86) (.42)
Dividends from net realized gain
on investments...................... -- (.04) (.15) (.23) (.12) --
Dividends in excess of net realized
gain on investments................. -- -- -- -- -- --
------- -------- ------- ------- ------- -------------
TOTAL DISTRIBUTIONS................. (1.08) (1.10) (1.12) (1.14) (.98) (.42)
------- -------- ------- ------- ------- -------------
Net asset value, end of period........ $14.02 $14.60 $15.74 $15.46 $14.45 $14.78
======= ======== ======= ======= ======= =============
TOTAL INVESTMENT RETURN................... 9.04% 12.34% 16.13% 5.50% .07% 10.35%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets -- .01% .41% .82% .87% .88%(1)
Ratio of net investment income to
average net assets.................. 7.83% 7.30% 6.46% 5.71% 5.99% 5.62%(1)
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .92% .75% .35% .03% -- --
Portfolio Turnover Rate............... 50.18% 38.15% 64.98% 59.19% 67.87% 64.24%(2)
Net Assets, end of period (000's Omitted) $308,580 $720,395 $1,238,291 $1,240,815 $934,277 $950,073
(1) Annualized.
(2) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
GENERAL MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales load. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
(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 are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in 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 original issue 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, 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 applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $403,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to February 28, 1995. The
carryover does not include net realized securities losses from November 1,
1994 through February 28, 1995 which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, the carryover expires in
fiscal 2003.
GENERAL MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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, brokerage, interest on borrowings and
extraordinary expenses, exceed 1 1/2% of the average value of the Fund's net
assets for any full fiscal year. There was no expense reimbursement for the
six months ended August 31, 1995.
(B) Under a Service Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, the Fund (a) reimburses the Distributor for payments to
certain Service Agents for distributing the Fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays The Dreyfus Corporation,
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, and
any affiliate of either of them (collectively, "Dreyfus") for advertising and
marketing relating to the Fund and for servicing, at an aggregate annual rate
of .20 of 1% of the value of the Fund's average daily net assets. Each of the
Distributor and Dreyfus may pay one or more Service Agents a fee in respect
of the Fund's 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. Each of the Distributor and Dreyfus determine the amounts, if any,
to be paid to Service Agents under the Service Plan and the basis on which
such payments are made. The fees payable under the Service Plan are payable
without regard to actual expenses incurred. 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. During the six months ended August 31, 1995,
$904,947 was charged to the Fund pursuant to the Service Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities
amounted to $1,554,727,458 and $1,595,953,372, respectively, for the six
months ended August 31, 1995, and consisted entirely of long-term and
short-term municipal investments.
The Fund may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. 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.
At August 31, 1995, there were no financial futures contracts outstanding.
GENERAL MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(B) At August 31, 1995, accumulated net unrealized appreciation on
investments was $35,617,645, consisting of $36,269,727 gross unrealized
appreciation and $652,082 gross unrealized depreciation.
At August 31, 1995, 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.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
GENERAL MUNICIPAL BOND FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
General Municipal Bond Fund, Inc., including the statement of investments, as
of August 31, 1995, and the related statements of operations and changes in
net assets and financial highlights for the six month period ended August 31,
1995. These financial statements and financial highlights are the
responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
February 28, 1995 and financial highlights for each of the five years in the
period ended February 28, 1995 and in our report dated April 3, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
New York, New York
October 4, 1995
GENERAL MUNICIPAL
BOND 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
90 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. 106SA958
General Municipal
Bond Fund, Inc.
Semi-Annual
Report
August 31, 1995
