LETTER TO SHAREHOLDERS
Dear Shareholder:
The volatile market environment experienced in 1994 was painful. The
losses registered by fixed-income securities during the year were
unprecedented in recent history. This turmoil resulted from the series of
short-term interest rate hikes precipitated by the Federal Reserve Board
concern over the prospects for inflation. From January, 1994 to date, the Fed
has pushed short rates 300 basis points higher through a series of seven rate
hikes. The resulting decline in the value of municipal bonds was intensified
by other forces as well.
The 1993 Federal tax law governing the taxation of market discount gains
as ordinary income (as opposed to capital gains) accentuated the loss in
value of municipals more than would have been the case under previous law.
Furthermore, late in the calendar year, many investors sold bond mutual fund
shares as well as individual bonds to create year-end tax losses. This was
occurring on the heels of the Orange County, California municipal bankruptcy,
which resulted from leveraged speculation on interest rates. Municipal bond
investors became concerned as the Orange County story unfolded, and these
worries intensified amidst speculation about similar problems elsewhere.
These factors combined to accentuate an already tumultuous situation.
Fortunately, the sharp decline in the issuance of new municipal debt during
the year helped mitigate the market's decline.
Late in the calendar year, the municipal bond market began to find
support as market fears regarding the economy and rising inflation moderated.
What has ensued is a strong market rally thus far in 1995: Long-term rates
have declined over 50 basis points, reducing a large portion of the previous
year's negative market performance. In the case of the General Municipal Bond
Fund, Inc., for the fiscal year ended February 28, 1995 the Fund did manage
to register a slight positive return of .07%,* which is indicative of the
recent strong rebound in prices. In spite of the price volatility throughout
the past fiscal year, the Fund continued to distribute a comparatively high
level of tax-free income dividends. Your Fund paid shareholders tax-free
income dividends of approximately $.858 per share, equalling a tax-free
distribution rate per share of 5.89%, based on the February 28, 1995 closing
net asset value per share of $14.45, adjusted for capital gain distributions.
All income distributed was exempt from Federal income tax, adjusted for
capital gain distributions.**
Stronger than expected economic growth last year created a difficult
investment environment. Portfolio moves were made to reduce the Fund's risk
profile. However, as it turned out, the market declined much faster, and
further, than initially anticipated. While exposure to the more
price-sensitive bonds was reduced, the market's steady price decline
throughout the year, coupled with significant redemptions of Fund shares, had
the greatest effect on performance. The Fund's derivative holdings were also
eliminated due to steadily rising short-term rates which reduced the
advantage of maintaining these positions.
While the portfolio's comparatively long duration was a factor in its
underperformance through most of the fiscal year, it has contributed a
positive impetus during the most recent market phase. In our opinion, there
existed enough preliminary evidence late last fall pointing to a slowing in
the economy. Rather than sticking with the consensus, management elected to
take a more positive posture on the market with a view that it would be
better to be early than too late! This stance has, to date, been the correct
one as evidenced in the rebound in the Fund's net asset value.
We have always been strong advocates of maintaining a disciplined,
long-term approach to investing. This Fund has been structured to maximize
investment performance over the long term; abandoning such a strategy while
attempting to time the market during periods of weakness can be detrimental
if one's timing is not precise. Certainly, the market's behavior during the
past year underscores this fact. As mentioned previously, the strong rebound
in prices since last November has benefited those investors who elected to
stay the course.
Going forward, we feel that the next year will certainly be better than
the last, and therefore have lengthened the portfolio's duration. While we
may not have seen the last hike in rates, we believe that the economy is
slowing enough in certain key sectors such as housing and automotive sales to
make us comfortable with our position. Furthering our optimism, there is a
dearth of new supply issuance in the tax exempt market. The sharp curtailment
of bond issuance experienced in 1994 will continue in the months ahead. If
the economy slows sufficiently, municipal investments should perform better
than most other fixed-income alternatives.
We anticipate that this strategy will continue to provide relatively
strong results over the long term. As always, we will continue to manage your
Fund to provide the best returns with a high degree of safety and
predictability.
Very truly yours,
(Richard J. Moynihan signature logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
March 15, 1995
New York, N.Y.
* Total return represents the change during the period in a
hypothetical account with dividends reinvested.
** 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, if any, are generally subject to Federal, state and
local taxes.
GENERAL MUNICIPAL BOND FUND, INC. FEBRUARY 28, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN GENERAL MUNICIPAL BOND
FUND, INC. AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
[Exhibit A]
*Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED TEN YEARS ENDED
FEBRUARY 28, 1995 FEBRUARY 28, 1995 FEBRUARY 28, 1995
-------------------- -------------------- --------------------
.07% 8.48% 9.58%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in the General Municipal
Bond Fund on 2/28/85 to a $10,000 investment made in the Lehman Brothers
Municipal Bond Index on that date. 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.
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS FEBRUARY 28, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--88.5% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
ALASKA--.8%
Valdez, Marine Terminal Revenue, Refunding (BP Pipeline Inc. Project)
5.50%, 10/1/2028........................................................ $ 8,860,000 $ 7,709,086
ARIZONA--2.8%
Maricopa County Unified School District Number 41, Revenue, Refunding
(Gilbert School District) Zero Coupon, 7/1/2005 (Insured; FGIC)......... 5,965,000 3,379,530
Navajo County Pollution Control Corp., Revenue (Arizona Public Service Co.)
5.50%, 8/15/2028........................................................ 2,750,000 2,533,933
Salt River Project Agricultural Improvement and Power District,
Electric System Revenue:
5.05%, 1/1/2011....................................................... 10,000,000 8,971,300
5.05%, 1/1/2012....................................................... 13,000,000 11,588,330
CALIFORNIA--3.5%
California Public Works Board, Lease Revenue
(Department of Corrections-Susanville) 5.375%, 6/1/2018 (Insured; MBIA). 10,000,000 9,115,800
Los Angeles Department of Water and Power, Electric Plant Revenue, Sinking
Fund,
Refunding:
5.375%, 9/1/2023...................................................... 5,000,000 4,451,300
5.875%, 9/1/2030...................................................... 10,000,000 9,577,000
San Diego, IDR, Refunding 5.90%, 6/1/2018 (Insured; AMBAC).................. 5,000,000 4,894,250
San Marcos Public Facilities Authority, Public Improvement Revenue, Refunding
(Civic Center) 6.15%, 8/1/2013.......................................... 5,500,000 5,083,870
COLORADO--7.4%
Colorado Health Facilities Authority, Retirement Facilities Revenue
(Liberty Heights) Zero Coupon, 7/15/2022................................ 47,350,000 6,475,112
Colorado Housing Finance Authority, Single Family Program 7.55%, 8/1/2023... 3,650,000 3,806,220
Dawson Ridge Metropolitan District Number 1, Refunding:
Zero Coupon, 10/1/2017.................................................. 7,260,000 1,588,706
Zero Coupon, Series A, 10/1/2022........................................ 5,880,000 904,638
Zero Coupon, Series B, 10/1/2022........................................ 47,535,000 7,332,749
Denver City and County, Airport System Revenue:
7.25%, 11/15/2007....................................................... 6,250,000 6,362,250
7.25%, 11/15/2012....................................................... 5,100,000 5,198,787
8.25%, 11/15/2012....................................................... 4,505,000 4,795,798
8%, 11/15/2017.......................................................... 3,000,000 3,069,990
7.75%, 11/15/2021....................................................... 6,760,000 6,956,784
7.25%, 11/15/2023....................................................... 15,185,000 15,234,959
8.75%, 11/15/2023....................................................... 3,250,000 3,532,555
8%, 11/15/2025.......................................................... 5,250,000 5,447,032
CONNECTICUT--.9%
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project) 5.50%, 1/1/2014........................... 10,250,000 8,681,648
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
DISTRICT OF COLUMBIA--.6%
Metropolitan Airports Authority, General Airport Revenue
5.50%, 10/1/2024 (Insured; MBIA)........................................ $ 6,750,000 $ 6,121,035
FLORIDA-- 2.5%
Leon County Educational Facilities Authority (Southgate Residence Hall
Project):
3.75%, 12/1/1995 (f).................................................... 198,120 39,624
COP 9%, 9/1/2014 (a).................................................... 4,000,000 800,000
Palm Beach County, Solid Waste IDR (Osceola Power Ltd. Partnership)
6.95%, 1/1/2022......................................................... 3,000,000 2,869,950
Pinellas County Housing Facilities Authority, SFMR (Multi County Program)
6.70%, 2/1/2028 (Insured; FHA).......................................... 7,500,000 7,560,675
Polk County Industrial Development Authority, IDR 7.525%, 1/1/2015.......... 12,400,000 12,555,124
GEORGIA--1.0%
Georgia Housing and Finance Authority, Home Ownership Mortgage Revenue
Zero Coupon, 12/1/2031 (Insured; FHA)................................... 23,705,000 1,779,297
Macon-Bibb County Industrial Authority, Industrial Revenue (Weyerhaeuser Co.
Project)
9%, 10/1/2007........................................................... 1,000,000 1,294,610
Savannah Hospital Authority, Revenue, Refunding (Saint Joseph's Hospital
Project)
6.20%, 7/1/2023......................................................... 3,635,000 3,405,232
Wayne County Development Authority, PCR, Refunding (ITT Rayonier Inc.
Project)
6.10%, 11/1/2007........................................................ 3,205,000 3,214,294
IDAHO--.4%
Idaho Housing Agency, Housing Revenue (Blue Meadows Project)
7.20%, 7/1/2033 (Insured; FHA).......................................... 3,500,000 3,614,485
ILLINOIS--7.1%
Chicago, Gas Supply Revenue (People's Gas Light and Coke Co.) 8.10%, 5/1/2020 3,000,000 3,353,220
Chicago-O'Hare International Airport, Revenue:
6%, 1/1/2018 (Insured; MBIA)............................................ 10,000,000 9,510,700
Special Facility:
(American Airlines Inc. Project) 7.875%, 11/1/2025.................... 2,725,000 2,813,781
(United Airlines Inc.):
8.40%, 5/1/2018................................................... 2,910,000 3,086,550
8.50%, 5/1/2018................................................... 2,500,000 2,660,325
8.85%, 5/1/2018................................................... 6,540,000 7,214,078
Illinois Development Finance Authority, Revenue:
(Community Rehabilitation Providers Facility Acquisition) 8.75%, 3/1/2010 2,305,000 2,423,039
Pollution Control, Refunding (Commonwealth Edison Co. Project) 5.70%, 1/15/2009 6,000,000 5,596,080
Illinois Health Facilities Authority, Revenue:
(Beverly Farm Foundation) 9.125%, 12/15/2015............................ 2,000,000 2,147,160
(Residential Centers Inc.) 8.50%, 8/15/2016............................. 6,015,000 6,015,000
Robbins, RRR (Robbins Resource Recovery Partners) 9.25%, 10/15/2014......... 13,000,000 13,857,610
Village of Romeoville 8.375%, 1/1/2010...................................... 7,495,000 8,230,259
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
INDIANA--.9%
Fishers, Economic Development Revenue, First Mortgage (United Student Funds Inc.)
8.375%, 9/1/2014........................................................ $ 2,000,000 $ 2,087,800
City of Sullivan, PCR, Refunding (Indiana Michigan Power Co. Project)
5.95%, 5/1/2009......................................................... 6,750,000 6,384,893
KENTUCKY--4.4%
Kenton County Airport Board, Airport Revenue
(Special Facilities - Delta Airlines Project):
7.50%, 2/1/2012....................................................... 21,550,000 21,869,371
7.125%, 2/1/2021...................................................... 8,130,000 8,020,570
City of Mount Sterling, Revenue (Kentucky League of Cities Funding Trust Lease
Program) 6.10%, 3/1/2018................................................ 5,500,000 5,386,810
Pendleton County, Multi-County Lease Revenue (Kentucky Association of Counties
Leasing Trust Program) 6.40%, 3/1/2019.................................. 6,000,000 6,007,260
LOUISIANA--4.1%
Louisiana Public Facilities Authority, HR:
(Louisiana Association of Independent Colleges and Universities Facilities Loan
Program) 7%, 12/1/2017................................................ 6,195,000 6,281,420
Refunding (Our Lady of the Lake Regional Medical Center Project)
6.25%, 11/28/2014 (Insured; MBIA)..................................... 26,000,000 26,114,920
Parish of Saint James, SWDR (Freeport-McMoRan Partnership Project)
7.70%,10/1/2022......................................................... 4,140,000 4,159,003
Parish of West Feliciana, PCR (Gulf States Utilities Co. Project)
7.70%, 12/1/2014........................................................ 2,000,000 2,113,380
MAINE--1.1%
Maine Finance Authority, SWDR (Boise Cascade Corp. Project) 7.90%, 6/1/2015. 6,900,000 7,124,940
Maine Public Utility Financing Bank, Public Utility Revenue (Maine Public Services
Co. Project) 7.875%, 4/1/2021 (LOC; Barclays Bank p.l.c.) (b)........... 2,750,000 2,870,670
MARYLAND--.3%
Montgomery County Housing Opportunities Commission, MFMR 7.375%, 7/1/2032... 2,635,000 2,743,483
MASSACHUSETTS--1.4%
Massachusetts Health and Educational Facilities Authority, Revenue:
(New England Deaconess Hospital Issue) 7.20%, 4/1/2022.................. 5,000,000 5,116,200
(New England Medical Center Hospitals) 5.375%, 7/1/2024................. 5,100,000 4,571,844
Massachusetts Port Authority, Special Project Revenue (Harborside Hyatt
Project)
10%, 3/1/2026........................................................... 3,000,000 3,201,120
MICHIGAN--5.8%
City of Detroit, Sewage Disposal Revenue 5.70%, 7/1/2023 (Insured; FGIC).... 20,000,000 18,772,400
Flint Tax Increment Finance Authority, Refunding 6.125%, 6/1/2006........... 3,900,000 3,997,227
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
MICHIGAN (CONTINUED)
Michigan Hospital Finance Authority, HR, Refunding (Genesys Health System):
8.10%, 10/1/2013........................................................ $ 2,000,000 $ 2,068,420
8.125%, 10/1/2021....................................................... 4,910,000 5,039,870
7.50%, 10/1/2027........................................................ 6,000,000 5,863,740
Michigan Strategic Fund, Limited Obligation Revenue (WMX Technologies Inc.
Project)
6%, 12/1/2013........................................................... 14,000,000 13,569,780
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 5,181,000
MINNESOTA--.5%
Southern Minnesota Municipal Power Agency, Power Supply System Revenue,
Refunding Zero Coupon, 1/1/2025 (Insured; MBIA)......................... 30,660,000 4,900,081
NEBRASKA--1.3%
Nebraska Higher Education Loan Program Inc., Revenue 6.40%, 6/1/2013........ 12,500,000 12,445,125
NEVADA--.9%
Clark County, IDR (Southwest Gas Corp.) 7.50%, 9/1/2032..................... 8,000,000 8,224,000
NEW HAMPSHIRE--1.6%
New Hampshire Higher Educational and Health Facilities Authority, Revenue
(Crotched Mountain Rehabilitation Center) 7.75%, 1/1/2020............... 2,200,000 2,373,206
New Hampshire Housing Finance Authority, Single Family Residential Mortgage:
7.75%, 7/1/2023......................................................... 7,285,000 7,704,835
7.70%, 7/1/2029......................................................... 4,795,000 5,019,310
NEW JERSEY--1.2%
Hudson County Improvement Authority, Solid Waste System Revenue 7.10%, 1/1/2020 1,955,000 1,841,082
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)(b)........ 4,500,000 4,779,180
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007 5,000,000 4,792,650
NEW MEXICO--.3%
Farmington, PCR, Refunding (Southern California Edison Co.)
5.875%, 6/1/2023 (Insured; MBIA)........................................ 3,000,000 2,913,180
NEW YORK--11.3%
New York City Industrial Development Agency, Special Facility Revenue
(American Airlines Inc. Project) 8%, 7/1/2020........................... 1,325,000 1,386,798
New York State Dormitory Authority, Revenue:
(City University System):
5.75%, 7/1/2009....................................................... 7,000,000 6,632,920
5%, 7/1/2020.......................................................... 10,000,000 8,244,000
(State University Educational Facilities):
7.50%, 5/15/2013...................................................... 2,500,000 2,821,950
Refunding 5.875%, 5/15/2011........................................... 10,000,000 9,590,600
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW YORK (CONTINUED)
New York State Energy Research and Development Authority, Electric Facilities
Revenue:
(Consolidated Edison Co. Inc. Project) 7.125%, 12/1/2029................ $ 5,000,000 $ 5,219,950
(Long Island Lighting Co.) 6.90%, 8/1/2022.............................. 5,050,000 4,660,847
New York State Environmental Facilities Corp., PCR (State Water - Revolving
Fund)
5.90%, 11/15/2014....................................................... 5,000,000 4,925,050
New York State Local Government Assistance Corp.:
5.375%, 4/1/2014........................................................ 8,000,000 7,300,160
5%, 4/1/2021............................................................ 8,000,000 6,802,400
5%, 4/1/2023............................................................ 21,000,000 17,763,480
New York State Medical Care Facilities Finance Agency:
HR, Refunding (Presbyterian Hospital) 5.10%, 8/15/2010 (Insured; FHA)... 11,825,000 11,407,932
Secured Hospital Revenue 6.125%, 8/15/2013.............................. 5,750,000 5,385,163
New York State Thruway Authority, General Revenue 5%, 1/1/2020 (Insured; MBIA) 12,405,000 10,683,930
Triborough Bridge and Tunnel Authority, General Purpose Revenue 5%, 1/1/2024 5,125,000 4,363,732
NORTH DAKOTA--1.1%
North Dakota Housing Finance Agency, SFMR:
7.30%, 7/1/2024......................................................... 4,750,000 4,915,157
7.75%, 7/1/2024 (Insured; MBIA)......................................... 5,390,000 5,699,871
OHIO--.6%
Cleveland, Parking Facilities Improvement Revenue 8.10%, 9/15/2022.......... 5,300,000 5,565,265
OKLAHOMA--3.1%
McGee Creek Authority, Water Revenue 6%, 1/1/2013 (Insured; MBIA)........... 6,025,000 6,070,428
Trustees of the Tulsa Municipal Airport Trust, Revenue
(American Airlines Inc. Project):
9.50%, 6/1/2020....................................................... 1,000,000 1,047,880
7.375%, 12/1/2020 (Guaranteed; AMR Corp.)............................. 9,850,000 9,885,756
7.60%, 12/1/2030...................................................... 12,000,000 12,210,840
PENNSYLVANIA--3.2%
Borough of Langhorne Manor Higher Education and Health Authority, HR
(The Lower Bucks Hospital) 7.30%, 7/1/2012.............................. 3,400,000 3,242,444
Lehigh County General Purpose Authority, Revenue (Wiley House) 9.50%, 11/1/2016 3,500,000 3,603,355
Montgomery County Higher Education and Health Authority, Revenue
(Northwestern Corp.) 8.50%, 6/1/2016.................................... 3,000,000 3,101,550
Pennsylvania Intergovernmental Cooperatve Authority, Special Tax Revenue
(Philadelphia Funding Program) 5.625%, 6/15/2023 (Insured; MBIA)........ 4,000,000 3,760,320
Philadelphia, Water and Wastewater Revenue, Refunding
5.625%, 6/15/2008 (Insured; FSA)........................................ 7,570,000 7,569,243
Schuykill County Industrial Development Authority, RRR
(Schuykill Energy Resources Inc.) 6.50%, 1/1/2010....................... 9,710,000 9,036,709
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
RHODE ISLAND--2.2%
Rhode Island Depositors Economic Protection Corp., Special Obligation Refunding
5.875%, 8/1/2011 (Insured; MBIA)........................................ $ 12,885,000 $ 12,823,796
Rhode Island Housing and Mortgage Finance Corp.:
(Homeownership E-1) 7.55%, 10/1/2022.................................... 4,305,000 4,514,180
(Rental Housing Program) 7.95%, 10/1/2020............................... 3,195,000 3,371,684
SOUTH CAROLINA--3.0%
Richland County, Solid Waste Disposal Facilities Revenue (Union Camp Corp. Project)
7.125%, 9/1/2021........................................................ 5,000,000 5,168,750
South Carolina Public Service Authority, Revenue, Refunding:
5%, 1/1/2018 (Insured; FGIC)............................................ 5,000,000 4,343,100
5%, 1/1/2025 (Insured; FGIC)............................................ 13,400,000 11,465,978
5.125%, 1/1/2032........................................................ 4,750,000 3,947,963
Sumter County, School District Number 2, COP 8.125%, 4/1/2010............... 3,135,000 3,365,360
TENNESSEE--.5%
McMinn County Industrial Development Board, PCR (Calhoun Newsprint Co. Project)
7.625%, 3/1/2016........................................................ 4,500,000 4,703,715
TEXAS--5.7%
Alliance Airport Authority Inc., Special Facilities Revenue
(American Airlines Inc. Project):
7%, 12/1/2011 (Guaranteed; AMR Corp.)................................. 13,900,000 13,749,463
7.50%, 12/1/2029...................................................... 12,305,000 12,439,494
Bell County Health Facilities Development Corp., Revenue
(Southern Healthcare-Southview) 10.50%, 3/1/2020........................ 2,925,000 3,223,233
Brazos River Authority, PCR (Collateral Texas Utilities Electric Co. Project)
7.875%, 3/1/2021........................................................ 2,955,000 3,161,141
Dallas - Fort Worth International Airport Facility Improvement Corp., Revenue
(Delta Airlines Inc.) 7.625%, 11/1/2021................................. 2,200,000 2,243,604
Dickens County, Lease Obligation (Jail and Detention Facility Project)
8.875%, 4/1/2005........................................................ 3,950,000 4,098,125
Fort Bend County, Municipal Utility District Number 42, Refunding 8.30%, 4/1/2009 1,500,000 1,636,020
Gulf Coast Waste Disposal Authority, SWDR, (Champion International Corp.
Project)
7.25%, 4/1/2017......................................................... 4,735,000 4,828,469
Montgomery County Health Facilities Development Corp., Hospital Mortgage
Revenue
(Woodlands Medical Center Project) 8.85%, 8/15/2014..................... 6,940,000 7,565,710
Orange County Navigation and Port District Industrial Development Corp., IDR
(North Star Steel Project) 9.50%, 12/1/2004............................. 1,000,000 1,055,160
UTAH--1.0%
Carbon County, SWDR, Refunding (Sunnyside Cogeneration) 9.25%, 7/1/2018..... 8,000,000 8,634,240
Utah Housing Finance Agency, Single Family Mortgage 7.70%, 7/1/2015......... 1,155,000 1,199,964
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
VIRGINIA--3.4%
Fairfax County Industrial Development Authority, Revenue, Refunding
(Inova Health System Hospitals Project) 5%, 8/15/2023................... $ 9,355,000 $ 7,555,659
Fairfax County Water Authority, Water Revenue, Refunding 5.75%, 4/1/2029.... 19,400,000 18,455,608
Isle Wight County Industrial Development Authority, Solid Waste Disposal
Facilities
Revenue (Union Camp Corp. Project) 6.55%, 4/1/2024...................... 6,115,000 6,075,130
WASHINGTON--1.9%
Chelan County Public Utility District Number 001, Consolidated Revenue
(Chelan Hydroelectric):
5.70%, 7/1/2008....................................................... 2,150,000 2,058,818
7.50%, 7/1/2011....................................................... 4,155,000 4,551,262
Port Moses Lake Public Corp., PCR (Union Carbide Co. Project) 7.875%, 8/1/2006 2,100,000 2,220,246
Washington Public Power Supply System, Revenue, Refunding:
(Nuclear Project Number 1) 5.375%, 7/1/2015............................. 9,000,000 7,957,890
(Nuclear Project Number 3) Zero Coupon, 7/1/2017........................ 6,750,000 1,538,257
WEST VIRGINIA--.7%
Kanawha County, IDR (Union Carbide Chemical and Plastics) 8%, 8/1/2020...... 1,930,000 2,062,128
South Charleston, PCR, Refunding (Union Carbide Co. Project) 7.625%, 8/1/2005 4,500,000 4,763,025
--------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $824,789,418)..................................................... $838,067,427
==============
SHORT-TERM MUNICIPAL INVESTMENTS--11.5%
CALIFORNIA--.4%
Palm Springs Industrial Development Authority, Revenue, VRDN
(BP Holdings Project) 4.10% (LOC; The Bank of California) (b,c)......... $ 3,000,000 $ 3,000,000
Riverside, Multi-Family Housing Revenue, VRDN (Crest Apartments Project)
4.50% (LOC; Tokai Bank) (b,c)........................................... 1,000,000 1,000,000
CONNECTICUT--.7%
State of Connecticut, Special Tax Obligation Revenue, VRDN:
(Transportation Infrastructure) 4% (LOC; Industrial Bank of Japan) (b,c) 4,400,000 4,400,000
(Unemployment Compensation) 4.05% (LOC; Mitsubishi Bank) (b,c).......... 2,200,000 2,200,000
FLORIDA--2.4%
Dade County, Water and Sewer System Revenue, VRDN
3.95% (Insured; FGIC, SBPA; Industrial Bank of Japan) (c)............... 3,000,000 3,000,000
Pinellas County Health Facilities Authority, Revenue, VRDN
(Pooled Hospital Loan Program) 3.70% (LOC; Chemical Bank) (b,c)......... 8,200,000 8,200,000
University Athletic Association Inc., VRDN (Rangely University Stadium
Project)
3.50% (LOC; Sun Bank and Trust Co.) (b,c)............................... 11,400,000 11,400,000
LOUISIANA--.4%
Louisiana Public Facilities Authority, Revenue, VRDN (Kenner Hotel Ltd.)
3.90% (LOC; Swiss Bank Corp.) (b,c)..................................... 4,100,000 4,100,000
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
MARYLAND--.2%
Northeast Maryland Waste Disposal Authority, RRR, Refunding, VRDN
(Harford County Resource Project) 3.90%
(Insured; AMBAC, SBPA; Credit Local De France) (c)...................... $ 1,800,000 $ 1,800,000
NEW MEXICO--1.9%
Hurley, PCR, VRDN (Kennecott Santa Fe)
3.90% (Guaranteed; British Petroleum America Inc.) (c).................. 17,550,000 17,550,000
NEW YORK--1.0%
City of New York, VRDN 3.90% (Insured; MBIA) (c)............................ 8,000,000 8,000,000
Port Authority of New York and New Jersey, Special Obligation Revenue,
VRDN 3.60% (SBPA; Morgan Guaranty Trust Co.) (c)........................ 1,600,000 1,600,000
NORTH CAROLINA--.5%
North Carolina Medical Care Commission, HR, VRDN (Pooled Financing Project)
3.90% (LOC; Dai-Ichi Kangyo Bank) (b,c)................................. 4,700,000 4,700,000
MINNESOTA--.3%
Cloquet, PCR, VRDN (Potlatch Corp. Project)
4.05% (LOC; Credit Suisse) (b,c)........................................ 1,100,000 1,100,000
Golden Valley, IDR, Refunding, VRDN (Graco Inc. Project)
4.35% (LOC; Fuji Bank) (b,c)............................................ 2,080,000 2,080,000
OHIO--.5%
Cincinnati Student Loan Funding Corp., Student Loan Revenue, VRDN:
4% (LOC; Fuji Bank) (b,c)............................................... 2,140,000 2,140,000
4.10% (LOC; National Westminster Bank) (b,c)............................ 1,500,000 1,500,000
Ohio State Air Quality Development Authority, Revenue, VRDN
(JMG Funding Limited Partnership) 4% (LOC; Societe Generale) (b,c)...... 700,000 700,000
PENNSYLVANIA--.7%
Pennsylvania Energy Development Authority, Energy Development Revenue, VRDN
(B&W Ebensburg Project) 4.10% (LOC; Swiss Bank Corp.) (b,c)............. 2,700,000 2,700,000
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue, VRDN
4.10% (LOC; Union Bank of Switzerland) (b,c)............................ 4,100,000 4,100,000
SOUTH CAROLINA--.5%
Berkeley County, Pollution Control Facilities Revenue, Refunding, VRDN
(Amoco Chemical Co. Project) 3.90% (c).................................. 4,950,000 4,950,000
TEXAS--1.3%
Harris County Health Facilities Development Corp., HR, VRDN
(Methodist Hospital) 3.70% (c).......................................... 12,400,000 12,400,000
Port Development Corp., Marine Terminal Revenue, VRDN
(Pasadena Terminal Project) 3.62% (LOC; Abn-Amro Bank N.V.) (b,c)....... 300,000 300,000
WYOMING--.7%
Platte County, PCR, VRDN (Tri State G&T)
3.90% (LOC; Chemical Bank) (b,c)........................................ 6,500,000 6,500,000
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) VALUE
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $109,420,000)..................................................... $109,420,000
==============
TOTAL INVESTMENTS--100.0%
(cost $934,209,419)..................................................... $947,487,427
==============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificate of Participation MFMR Multi-Family Mortgage Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FHA Federal Housing Administration RRR Resources Recovery Revenue
FSA Financial Security Assurance SBPA Standby Bond Purchase Agreement
HR Hospital Revenue SFMR Single-Family Mortgage Revenue
IDR Industrial Development Revenue SWDR Solid Waste Disposal Revenue
LOC Letter of Credit VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
AAA Aaa AAA 20.0%
AA Aa AA 17.1
A A A 10.5
BBB Baa BBB 26.0
BB Ba BB 6.3
F1 MIG1 SP1 11.4
Not Rated (e) Not Rated (e) Not Rated (e) 8.7
--------
100.0%
=======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income accruing security. The valuation of this security has
been determined in good faith under the direction of the Board of
Directors.
(b) Secured by letters of credit.
(c) 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.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) 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.
(f) The valuation of this security has been determined in good faith
under the direction of the Board of Directors.
See notes to financial statements.
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $934,209,419)-see statement..................................... $947,487,427
Receivable for investment securities sold............................... 20,737,786
Interest receivable..................................................... 13,866,951
Receivable for subscriptions to Common Stock............................ 40,354
Prepaid expenses........................................................ 43,494
--------------
982,176,012
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 370,809
Due to Distributor...................................................... 134,840
Due to Custodian........................................................ 8,339,022
Payable for investment securities purchased............................. 38,836,493
Payable for Common Stock redeemed....................................... 43,735
Accrued expenses........................................................ 174,339 47,899,238
------------- --------------
NET ASSETS ................................................................ $934,276,774
==============
REPRESENTED BY:
Paid-in capital......................................................... $925,962,360
Accumulated net realized capital losses and distribution in excess of
net realized gain on investments-Note 1(c)............................ (4,963,594)
Accumulated net unrealized appreciation on investments-Note 3(b)........ 13,278,008
--------------
NET ASSETS at value applicable to 64,652,108 shares outstanding
(150 million shares of $.01 par value Common Stock authorized).......... $934,276,774
==============
NET ASSET VALUE, offering and redemption price per share
($934,276,774 / 64,652,108 shares)...................................... $14.45
======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED FEBRUARY 28, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 66,038,620
EXPENSES:
Management fee-Note 2(a).............................................. $ 5,295,714
Shareholder servicing costs-Note 2(b)................................. 2,583,111
Custodian fees........................................................ 83,806
Professional fees..................................................... 82,599
Prospectus and shareholders' reports.................................. 64,578
Registration fees..................................................... 59,917
Directors' fees and expenses-Note 2(c)................................ 36,248
Miscellaneous......................................................... 166,647
------------
TOTAL EXPENSES.................................................. 8,372,620
--------------
INVESTMENT INCOME--NET.......................................... 57,666,000
--------------
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3(a)............................ $(4,138,192)
Net realized (loss) on financial futures-Note 3(a)...................... (821,567)
------------
NET REALIZED (LOSS)................................................... (4,959,759)
Net unrealized (depreciation) on investments............................ (63,932,877)
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (68,892,636)
--------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (11,226,636)
==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED FEBRUARY 28,
---------------------------------------
1994 1995
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 73,137,663 $ 57,666,000
Net realized gain (loss) on investments................................. 23,966,089 (4,959,759)
Net unrealized (depreciation) on investments for the year............... (20,709,885) (63,932,877)
---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... 76,393,867 (11,226,636)
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.............................................. (73,540,228) (57,666,000)
From net realized gain on investments................................... (18,210,546) (8,389,176)
In excess of net realized gain on investments........................... ____ (3,835)
---------------- ----------------
TOTAL DIVIDENDS....................................................... (91,750,774) (66,059,011)
---------------- ----------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 1,964,133,330 1,520,860,174
Dividends reinvested.................................................... 68,036,992 46,870,459
Cost of shares redeemed................................................. (2,014,289,167) (1,796,983,645)
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..... 17,881,155 (229,253,012)
---------------- ----------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 2,524,248 (306,538,659)
NET ASSETS:
Beginning of year....................................................... 1,238,291,185 1,240,815,433
---------------- ----------------
End of year............................................................. $1,240,815,433 $ 934,276,774
================ ================
SHARES SHARES
---------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 124,762,916 106,215,275
Shares issued for dividends reinvested.................................. 4,309,637 3,273,509
Shares redeemed......................................................... (127,518,879) (125,075,831)
---------------- ----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 1,553,674 (15,587,047)
================ ================
See notes to financial statements.
</TABLE>
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 the Fund's financial statements.
<TABLE>
<CAPTION>
FISCAL YEAR ENDED FEBRUARY
------------------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $13.90 $14.02 $14.60 $15.74 $15.46
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net........................ 1.08 1.06 .97 .90 .86
Net realized and unrealized gain (loss)
on investments............................. .12 .62 1.29 (.04) (.89)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... 1.20 1.68 2.26 (.86) (.03)
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income_net......... (1.08) (1.06) (.97) (.91) (.86)
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)
------- ------- ------- ------- -------
Net asset value, end of year................. $14.02 $14.60 $15.74 $15.46 $14.45
====== ======= ======= ======= =======
TOTAL INVESTMENT RETURN 9.04% 12.34% 16.13% 5.50% .07%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... -- .01% .41% .82% .87%
Ratio of net investment income to average net assets 7.83% 7.30% 6.46% 5.71% 5.99%
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%
Net Assets, end of year (000's Omitted)...... $308,580 $720,395 $1,238,291 $1,240,815 $934,277
See notes to financial statements.
</TABLE>
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, until August 24, 1994, acted as the distributor of the Fund's
shares which are sold to the public without a sales load. Dreyfus Service
Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
(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
judgement 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, if any, it is the policy of the Fund not to distribute such gain.
Dividends in excess of net realized gain on investments for financial
statement purposes result primarily from distributions of realized gain
necessary to satisfy tax requirements.
(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.
GENERAL MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
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 year ended February 28, 1995.
(B) On August 3, 1994, Fund shareholders approved a revised Service Plan
(the "Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the Plan,
effective August 24, 1994, the Fund (a) reimburses the Distributor for
payments to third parties for distributing the Fund's shares and servicing
shareholder accounts and (b) pays the Manager, Dreyfus Service Corporation or
any affiliate (collectively "Dreyfus") for advertising and marketing relating
to the Fund and for servicing shareholder accounts, 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
securities dealer, financial institution or other industry professional) 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 to be paid to Service Agents to which it will make payments and
the basis on which such payments are made. 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 August 24, 1994, the Fund's Service Plan ("prior Service Plan")
provided that the Fund pay Dreyfus Service Corporation 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. Dreyfus Service
Corporation made payments to one or more Service Agents based on the value of
the Fund's shares owned by clients of the Service Agent. The prior Service
Plan also separately provided 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 prior Service Plan, not to exceed the greater of $100,000 or
.005 of 1% of the Funds daily net assets for any full fiscal year.
For the year ended February 28, 1995, the Fund was charged $928,664
pursuant to the Plan and $1,019,821 was charged pursuant to the prior Service
Plan.
(C) Prior to August 24, 1994, certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives 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.
GENERAL MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3--SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities
amounted to $1,752,141,244 and $1,875,430,664, respectively, for the year
ended February 28, 1995, and consisted entirely of long-term and short-term
municipal investments.
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. At February 28, 1995, there were no financial futures contracts
outstanding.
(B) At February 28, 1995, accumulated net unrealized appreciation on
investments was $13,278,008, consisting of $26,776,254 gross unrealized
appreciation and $13,498,246 gross unrealized depreciation.
At February 28, 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.
REPORT OF ERNST & YOUNG LLP, 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, 1995, 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, 1995 by correspondence with the custodian
and brokers. 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, 1995, 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 3, 1995
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, 1995:
_ all the dividends paid from investment income-net are
"exempt-interest dividends" (not generally subject to regular Federal
income tax), and
_ the portion of the $.1212 per share paid by the Fund on August
31, 1994 representing a long-term capital gain distribution is $.1023
per share.
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 1995 calendar year
on Form 1099-DIV which will be mailed by January 31, 1996.
(Dreyfus `D' Logo)
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. 106AR952
(Dreyfus Logo)
General Municipal
Bond Fund, Inc.
Annual Report
February 28, 1995
(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 |
|----------------- | ----------------- | -------------|
| 2/28/85 | 10,000 | 10,000 |
| 2/28/86 | 12,812 | 12,791 |
| 2/28/87 | 14,374 | 14,257 |
| 2/29/88 | 14,751 | 13,846 |
| 2/28/89 | 15,667 | 14,975 |
| 2/28/90 | 17,274 | 16,618 |
| 2/28/91 | 18,866 | 18,121 |
| 2/29/92 | 20,751 | 20,357 |
| 2/28/93 | 23,607 | 23,640 |
| 2/28/94 | 24,914 | 24,940 |
| 2/28/95 | 25,384 | 24,959 |
|----------------------------------------------------------|
*Source: Lehman Brothers
