Letter to Shareholders
Dear Shareholder:
The General Government Securities Money Market Fund, Inc. completed
its latest semi-annual reporting period on July 31, 1994 in an
environment of rising interest rates. Accordingly, the annualized yield for
this six-month period was 3.19%. After taking into account the effect of
compounding, the annualized effective yield was 3.24%.*
There were sharp increases in a number of economic indicators in the
last calendar quarter of 1993 and in January, 1994. These changes
impelled the Federal Reserve Board in February to initiate a series of
increases in interest rates in an effort to head off a return of inflation. By
the end of the Fund's fiscal period, there had been four tightening moves
by the Federal Reserve and a fifth one in mid-August.
As interest rates rose, we thought it prudent to shorten average
maturities in the portfolio. Since there is no clear indication yet that
interest rates have leveled off, we are keeping the Fund in a defensive
position, with fairly short average maturities. These of course can be
lengthened if and when the monetary outlook changes.
As we see the picture now, the U.S. economy continues to strengthen,
even though the last few weeks have seen a modest slackening in some
areas such as housing starts and auto sales.
The Federal Reserve obviously believes that in the long run, an
expanding economy without inflationary excesses is better for all
concerned. If this policy works out, we would expect interest rates to
stabilize at some point down the road. We will of course adjust the Fund's
investment posture to take account of such changes in economic
conditions.
We appreciate your confidence in this Fund and look forward to
continuing to serve your investment needs.
Sincerely,
(Joseph S. DiMartino Signature Logo)
For The Dreyfus Corporation
Joseph S. DiMartino
President
August 23, 1994
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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GENERAL
GOVERNMENT
SECURITIES
MONEY MARKET
FUND, INC.
[G-LOGO]
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SEMI-ANNUAL REPORT
July 31, 1994
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<TABLE>
<CAPTION>
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GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS JULY 31, 1994 (UNAUDITED)
ANNUALIZED
YIELD ON
- ----------------------------------------------------------- DATE OF PRINCIPAL
U.S. TREASURY BILLS--4.6% PURCHASE AMOUNT VALUE
----------- ------------ ------------
<S> <C> <C> <C>
1/12/1995
(cost $24,453,333)....................................... 4.92% $ 25,000,000 $ 24,453,333
============
- -----------------------------------------------------------
U.S. GOVERNMENT AGENCIES--83.4%
Federal Farm Credit Banks, Discount Notes
9/16/1994................................................ 3.45% $ 4,000,000 $ 3,982,980
11/2/1994................................................ 3.65 4,000,000 3,963,627
12/5/1994................................................ 4.76 10,000,000 9,836,900
12/12/1994............................................... 4.76 5,300,000 5,208,755
Federal Farm Credit Banks, Floating Rate Notes
10/19/1994 (a)........................................... 4.70 15,000,000 15,000,000
11/29/1995 (a)........................................... 4.69 25,000,000 24,986,712
9/3/1996 (a)............................................. 4.63 50,000,000 50,000,000
Federal Home Loan Banks, Discount Notes
9/21/1994................................................ 4.48 30,000,000 29,811,300
2/21/1995................................................ 5.05 10,000,000 9,722,900
Federal Home Loan Banks, Floating Rate Notes
11/1/1994 (a)............................................ 3.72 25,000,000 25,000,000
5/6/1996 (a)............................................. 4.57 20,000,000 19,985,202
Federal Home Loan Mortgage Corp., Discount Notes
9/6/1994................................................. 4.54 20,000,000 19,909,800
10/24/1994............................................... 4.79 25,000,000 24,724,667
12/19/1994............................................... 4.81 11,418,000 11,209,304
Federal National Mortgage Association, Discount Notes
9/19/1994................................................ 3.40 12,000,000 11,946,291
10/5/1994................................................ 4.68 30,000,000 29,750,833
10/18/1994............................................... 3.40 4,880,000 4,845,002
11/29/1994............................................... 4.86 25,000,000 24,604,167
12/16/1994............................................... 4.70 5,000,000 4,912,663
1/6/1995................................................. 3.52 10,300,000 10,146,300
Federal National Mortgage Association, Floating Rate Notes
10/4/1996 (a)............................................ 4.70 25,000,000 25,000,000
Small Business Administration, Pool Certificates
3/25/2005 (a)............................................ 5.44 1,580,488 1,580,488
12/25/2014 (a)........................................... 5.44 1,941,604 1,935,668
1/25/2015 (a)............................................ 5.50 1,313,784 1,313,784
2/25/2015 (a)............................................ 5.47 3,625,802 3,625,802
5/25/2015 (a)............................................ 5.56 2,618,291 2,618,291
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GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
ANNUALIZED
YIELD ON
- ----------------------------------------------------------- DATE OF PRINCIPAL
U.S. GOVERMENT AGENCIES (CONTINUED) PURCHASE AMOUNT VALUE
----------- ------------ ------------
Student Loan Marketing Association, Floating Rate Notes
10/11/1994 (a)........................................... 4.65% $ 25,000,000 $ 25,000,000
4/24/1995 (a)............................................ 5.00 25,000,000 25,000,000
6/2/1995 (a)............................................. 4.77 2,500,000 2,500,000
3/20/1996 (a)............................................ 4.82 17,500,000 17,500,000
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TOTAL U.S. GOVERNMENT AGENCIES (cost $445,621,436)......... $445,621,436
============
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REPURCHASE AGREEMENTS--11.6%
First Interstate Bank of California
dated 7/29/1994, due 8/1/1994 in the amount of $7,114,297
(fully collateralized by $6,667,000 U.S. Treasury
Notes 11.25% due 5/15/1995, value $7,130,157)............ 3.88% $ 7,112,000 $ 7,112,000
Kidder, Peabody & Co. Inc.
dated 7/29/1994, due 8/1/1994 in the amount of
$20,007,033
(fully collateralized by $20,610,000 U.S. Treasury
Bills due 11/17/1994, value $20,339,185)................. 4.22 20,000,000 20,000,000
U.B.S. Securities Inc.
dated 7/29/1994, due 8/1/1994 in the amount of
$20,007,000
(fully collateralized by $20,900,000 U.S. Treasury
Bills due 1/26/1995, value $20,416,374).................. 4.20 20,000,000 20,000,000
Yamaichi International (America) Inc.
dated 7/29/1994, due 8/1/1994 in the amount of
$15,005,275
(fully collateralized by $14,845,000 U.S. Treasury
Notes 8.625% due 1/15/1995, value $15,136,424)........... 4.22 15,000,000 15,000,000
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TOTAL REPURCHASE AGREEMENTS (cost $62,112,000)............. $ 62,112,000
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TOTAL INVESTMENTS (cost $532,186,769)............... 99.6% $532,186,769
====== ============
CASH AND RECEIVABLES (NET).......................... .4% $ 1,991,094
====== ============
NET ASSETS.......................................... 100.0% $534,177,863
====== ============
</TABLE>
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NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable interest rate--subject to periodic change.
See independent accountants' review report and notes to financial statements.
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GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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<TABLE>
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(including repurchase agreements of $62,112,000)--Note 1(a,b).................. $532,186,769
Cash............................................................................. 271,744
Interest receivable.............................................................. 1,423,221
Receivable for securities sold................................................... 1,166,609
Prepaid expenses................................................................. 48,788
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535,097,131
LIABILITIES:
Due to The Dreyfus Corporation................................................... $ 404,011
Payable for Common Stock redeemed................................................ 346,590
Accrued expenses................................................................. 168,667 919,268
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NET ASSETS......................................................................... $534,177,863
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REPRESENTED BY:
Paid-in capital.................................................................. $534,186,257
Accumulated net realized (loss) on investments................................... (8,394)
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NET ASSETS at value applicable to 534,186,257 outstanding shares
of Common Stock, equivalent to $1.00 per share
(15 billion shares of $.01 par value authorized)................................. $534,177,863
============
</TABLE>
<TABLE>
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STATEMENT OF OPERATIONS SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME.................................................................. $ 10,448,031
EXPENSES:
Management fee--Note 2(a)...................................................... $1,307,092
Shareholder servicing costs--Note 2(b,c)....................................... 675,569
Custodian fees................................................................. 79,636
Registration fees.............................................................. 32,091
Professional fees.............................................................. 15,608
Directors' fees and expenses--Note 2(d)........................................ 13,995
Prospectus and shareholders' reports........................................... 6,524
Miscellaneous.................................................................. 7,214
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TOTAL EXPENSES............................................................ 2,137,729
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INVESTMENT INCOME--NET............................................................. 8,310,302
NET REALIZED (LOSS) ON INVESTMENTS--Note 1(b)...................................... (8,271)
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................... $ 8,302,031
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</TABLE>
See independent accountants' review report and notes to financial statements.
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GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JANUARY 31, JULY 31, 1994
1994 (UNAUDITED)
--------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................. $ 16,844,770 $ 8,310,302
Net realized gain (loss) on investments................................ 20,284 (8,271)
--------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. 16,865,054 8,302,031
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DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net................................................. (16,844,770) (8,310,302)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold.......................................... 4,909,502,664 2,116,138,738
Dividends reinvested................................................... 15,932,788 8,056,927
Cost of shares redeemed................................................ (5,113,990,985) (2,126,893,046)
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(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............. (188,555,533) (2,697,381)
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TOTAL (DECREASE) IN NET ASSETS..................................... (188,535,249) (2,705,652)
NET ASSETS:
Beginning of period.................................................... 725,418,764 536,883,515
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End of period.......................................................... $ 536,883,515 $ 534,177,863
=============== ===============
</TABLE>
See independent accountants' review report and notes to financial statements.
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GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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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.
<TABLE>
<CAPTION>
YEAR ENDED JANUARY 31, SIX MONTHS ENDED
- ---------------------------------------- ------------------------------------------------------- JULY 31, 1994
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
------- ------- ------- ------- ------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $1.0000 $1.0000 $ .9999 $ .9999 $1.0000 $ 1.0000
------- ------- ------- ------- ------- --------
INVESTMENT OPERATIONS:
Investment income--net................ .0823 .0718 .0532 .0330 .0266 .0158
Net realized gain (loss) on
investments......................... .0001 (.0001) -- .0001 -- --
------- ------- ------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS.... .0824 .0717 .0532 .0331 .0266 .0158
------- ------- ------- ------- ------- --------
DISTRIBUTIONS:
Dividends from investment
income--net......................... (.0823) (.0718) (.0532) (.0330) (.0266) (.0158)
Dividends from net realized gain on
investments......................... (.0001) -- -- -- -- --
------- ------- ------- ------- ------- --------
TOTAL DISTRIBUTIONS................. (.0824) (.0718) (.0532) (.0330) (.0266) (.0158)
------- ------- ------- ------- ------- --------
Net asset value, end of period........ $1.0000 $ .9999 $ .9999 $1.0000 $1.0000 $ 1.0000
======= ======= ======= ======= ======= ========
8.56% 7.42% 5.46% 3.36% 2.69% 3.21%*
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TOTAL INVESTMENT RETURN
- ----------------------------------------
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net
assets.............................. .87% .86% .82% .82% .81% .82%*
Ratio of net investment income to
average net assets................. 8.23% 7.14% 5.27% 3.28% 2.66% 3.18%*
Net assets, end of period (000's
Omitted)............................ $306,610 $408,817 $609,015 $725,419 $536,884 $534,178
<FN>
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*Annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
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GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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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. Dreyfus Service
Corporation acted as the distributor of the Fund's shares until August 24, 1994,
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. ("Premier") was
engaged as the Fund's distributor. Premier, 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.
It is the Fund's policy to maintain a continuous net asset value per share
of $1.00; the Fund has adopted certain investment, portfolio valuation and
dividend and distribution policies to enable it to do so.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Directors to represent the fair value
of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income is
recognized on the accrual basis. Cost of investments represents amortized cost.
The Fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the Manager, subject to the seller's agreement to
repurchase and the Fund's agreement to resell such securities at a mutually
agreed upon price. Securities purchased subject to repurchase agreements are
deposited with the Fund's custodians and, pursuant to the terms of the
repurchase agreement, must have an aggregate market value greater than or equal
to the repurchase price plus accrued interest at all times. If the value of the
underlying securities falls below the value of the repurchase price plus accrued
interest, the Fund will require the seller to deposit additional collateral by
the next business day. If the request for additional collateral is not met, or
the seller defaults on its repurchase obligation, the Fund maintains the right
to sell the underlying securities at market value and may claim any resulting
loss against the seller.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends from investment income--net on each business day. Such dividends are
paid monthly. Dividends from net realized capital gain are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To the
extent that net realized capital gain can be offset by capital loss carryovers,
if any, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Internal Revenue Code, and to make distributions of taxable income
sufficient to relieve it from substantially all Federal income taxes.
At July 31, 1994, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
<PAGE>
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GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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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 .50 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 July 31, 1994.
(B) The Fund has adopted a Service Plan, pursuant to which it has agreed to
reimburse either the Manager or Dreyfus Service Corporation for payments made to
a Service Agent (a securities dealer, financial institution, or other industry
professional), at an annual rate of .20 of 1% of the average daily net asset
value of Fund shares owned by clients of the Service Agent. The rate and basis
of such payments may be modified from time to time by the Fund's Board of
Directors. For the six months ended July 31, 1994, such reimbursement amounted
to $522,837.
(C) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of 1%
of the value of the Fund's average daily net assets for servicing shareholder
accounts. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the Fund
and providing reports and other information, and services related to the
maintenance of shareholder accounts. During the six months ended July 31, 1994,
$68,366 was charged to the Fund pursuant to the Shareholder Services Plan.
(D) Certain officers and directors of the Fund are "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 $2,500 and
an attendance fee of $500 per meeting.
<PAGE>
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GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
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REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
General Government Securities Money Market Fund, Inc., including the statement
of investments, as of July 31, 1994, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended July 31, 1994. 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 January 31,
1994 and financial highlights for each of the five years in the period ended
January 31, 1994 and in our report dated March 7, 1994, we expressed an
unqualified opinion on such statement of changes in net assets and financial
highlights.
Ernst & Young LLP
New York, New York
September 7, 1994
<PAGE>
GENERAL GOVERNMENT SECURITIES
MONEY MARKET FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
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. 975SA947
