General Government
Securities Money
Market Fund, Inc.
SEMIANNUAL REPORT
May 31, 1999
(R) [Dreyfus Logo]
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues
(Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
- --------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
8 Statement of Assets and Liabilities
9 Statement of Operations
10 Statement of Changes in Net Assets
11 Financial Highlights
13 Notes to Financial Statements
FOR MORE INFORMATION
- --------------------------------------------------------
Back Cover
<PAGE>
General Government Securities The Fund
Money Market Fund, Inc.
LETTER FROM THE PRESIDENT
- -------------------------
Dear Shareholder:
We are pleased to present this semiannual report for General Government
Securities Money Market Fund, Inc., covering the six-month period from December
1, 1998 through May 31, 1999. Inside, you'll find valuable information about how
the fund was managed during the reporting period, including a discussion with
the fund's senior portfolio manager, Patricia A. Larkin.
Yields on money market securities generally declined early in the reporting
period in the wake of the Federal Reserve Board's decision in the fall of 1998
to ease monetary policy. While the U.S. economy has continued to grow, the
Federal Reserve was concerned about persistent economic weakness abroad. Their
adoption of lower short-term interest rates was intended to stimulate not just
domestic economic growth, but the economies of other nations as well.
Despite lower nominal interest rates for most money market funds, very low
inflation continued to support above-average real returns, which are nominal
yields less the rate of inflation.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in General Government Securities Money Market
Fund, Inc.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
June 14, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
- ------------------------------
Patricia A. Larkin, Senior Portfolio Manager
How did General Government Securities Money Market Fund, Inc. perform during
the period?
For the six-month period ended May 31, 1999, General Government Securities Money
Market Fund, Inc. produced an annualized yield of 4.25% for Class A shares and
4.01% for Class B shares which, taking into account the effect of compounding,
created an annualized effective yield of 4.34% for Class A shares and 4.08% for
Class B shares.(1) For the six months ended May 31, 1999, the fund provided a
total return of 2.14% for Class A shares and 2.02% for Class B shares,(2)
compared to the Lipper Money Market Funds category average total return of
2.12% for the same period.(3)
We attribute the fund's yield to the fact that the fund's average maturity was
extended, which enabled it to lock in higher returns in an environment
characterized, for all but the end of the period, by declining interest rates.
What is the fund's investment approach?
There are many factors we consider when managing General Government Securities
Money Market Fund, Inc. We closely monitor the outlook for growth and inflation.
We also follow overseas developments for any influences they may have on the
domestic economy. The posture of the Federal Reserve is also a key determinant
in our decision as to how best to structure the portfolio.
We actively manage the average maturity of the fund in an effort to take
advantage of expected changes in interest rates based upon our economic outlook.
For example, if we believe that interest rates will fall, we typically will
lengthen our average maturity in order to lock in today's higher rates.
Conversely, in a rising rate environment, we will shorten our maturities in
order to be able to reinvest at higher rates in the future.
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
The fund will buy only securities that are issued or guaranteed by the U.S.
government, its agencies or instrumentalities, as well as repurchase agreements
backed by these securities. This policy permits the fund to provide competitive
returns while ensuring that there is sufficient liquidity to meet our clients'
needs.
What other factors influenced the fund's performance?
Last fall, the Open Market Committee of the Federal Reserve Board cut short-term
interest rates three times in an attempt to provide liquidity and improve
investor confidence in the wake of global market turmoil. From that time and
through the end of the reporting period, despite some concern that the economy
might show signs of growing too quickly, the Fed had held interest rates steady.
The relatively longer average maturity of our fund benefited from stable rates
and the Fed's accommodative stance.
What is the fund's current strategy?
Since last year's global financial crisis, the overseas environment has
stabilized and the global markets have continued to strengthen. The U.S.
financial markets have redirected their attention to the domestic economy by
focusing on the pace of economic growth and on the future outlook for
inflation. During most of the reporting period, the domestic economy enjoyed a
period of accelerating growth within a non-inflationary environment.
Statistical data continued to show strength within many areas of the economy
including labor, housing, and a recovering manufacturing sector. However, a key
piece of inflation data eventually emerged which suggested the pick up in
inflation.
4
<PAGE>
This important factor in combination with the shift to an asymmetrical bias by
the Federal Open Market Committee (FOMC) at its May meeting, raised concerns
that the FOMC will take pre-emptive action to head off any serious threat of
inflation. The FOMC meets at the end of June and we are carefully monitoring
market conditions while continuing to seek buying opportunities.
June 14, 1999
[FN]
1 Annualized effective yield is based upon dividends declared daily and
reinvested monthly. Past performance is no guarantee of future results.
Yields fluctuate.
2 Total return includes reinvestment of dividends. An investment in the fund
is not insured or guaranteed by the FDIC or any other government agency.
Although the fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the fund.
3 Source: Lipper Analytical Services, Inc.
</FN>
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
May 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Annualized
Yield on
Date of Principal
U.S. Government Agencies--89.3% Purchase (%) Amount ($) Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Federal Farm Credit Bank, Consolidated
Systemwide Discount Notes
7/1/1999 5.58 25,000,000 24,998,714
10/5/1999 4.86 12,295,000 12,093,608
11/8/1999 4.81 20,000,000 19,592,000
Federal Farm Credit Bank, Consolidated
Systemwide Floating Rate Notes
6/23/1999 4.79(a) 50,000,000 49,998,234
7/16/1999 4.79(a) 25,000,000 24,998,151
9/23/1999 4.67(a) 25,000,000 25,000,000
1/28/2000 4.82(a) 50,000,000 50,000,000
2/9/2000 4.80(a) 25,000,000 24,996,708
3/17/2000 4.80(a) 50,000,000 49,992,542
Federal Home Loan Banks, Discount Notes
6/11/1999 5.63 25,000,000 24,999,459
7/6/1999 5.53 25,000,000 24,998,634
7/9/1999 5.48 9,650,000 9,596,829
7/13/1999 5.56 25,000,000 24,998,579
2/4/2000 5.11 16,365,000 16,326,426
2/22/2000 4.97 50,000,000 49,982,437
3/2/2000 5.04 28,727,000 27,673,677
3/15/2000 4.94 10,000,000 9,623,200
5/26/2000 5.19 40,000,000 39,984,867
Federal Home Loan Banks, Notes
1/14/2000 4.85 65,000,000 65,010,276
Federal Home Loan Banks, Floating Rate Notes
2/4/2000 4.84(a) 50,000,000 50,000,000
4/7/2000 4.85(a) 25,000,000 24,989,591
4/14/2000 4.84(a) 50,000,000 49,980,451
Federal Home Loan Mortgage Corporation,
Discount Note
3/2/2000 4.97 3,640,000 3,508,202
Federal National Mortgage Association,
Discount Note
8/13/1999 4.86 20,000,000 19,809,794
8/20/1999 5.45 17,000,000 16,804,689
9/22/1999 4.86 25,000,000 24,628,042
2/4/2000 4.89 25,000,000 24,197,444
4/20/2000 4.96 25,000,000 24,987,164
5/22/2000 5.05 25,000,000 24,988,238
Federal National Mortgage Association,
Floating Rate Notes
10/20/1999 4.77(a) 25,000,000 25,000,000
12/1/1999 4.83(a) 50,000,000 50,000,000
</TABLE>
6
<PAGE>
STATEMENT OF INVESTMENTS (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Annualized
Yield on
Date of Principal
U.S. Government Agencies (continued) Purchase (%) Amount ($) Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Federal National Mortgage Association,
Floating Rate Notes (continued)
3/10/2000 5.14(a) 26,845,000 26,831,093
Student Loan Marketing Association, Notes
6/2/1999 5.58 50,000,000 49,999,988
6/30/1999 5.15 24,950,000 24,956,748
Student Loan Marketing Association,
Floating Rate Notes
2/25/2000 4.85(a) 50,000,000 49,981,943
Total U.S. Government Agencies
(cost $1,065,527,728) 1,065,527,728
- -----------------------------------------------------------------------------------------------
Repurchase Agreements--9.8%
- -----------------------------------------------------------------------------------------------
Barclays De Zoette Wedd Securities, Inc.
dated 5/58/1999, due 6/1/1999 in the
amount of $41,276,561 (fully
collateralized by $40,770,000
U.S. Treasury Notes 6.00% to
6.75%, due 6/30/1999 to 8/15/1999,
value $41,855,212) 4.70 41,255,000 41,255,000
Bear Stearns & Co.
dated 5/28/1999, due 6/1/1999 in the
amount of $38,020,267 (fully
collateralized by $39,745,000
U.S. Treasury Strips due 8/15/1999 to
2/15/2000, value $38,398,647) 4.80 38,000,000 38,000,000
Morgan Stanley Dean Witter & Co.
dated 5/28/1999, due 6/1/1999 in the
amount of $38,020,140 (fully
collateralized by $38,300,000
U.S. Treasury Notes 5.625% due
10/31/1999, value $38,577,233) 4.77 38,000,000 38,000,000
Total Repurchase Agreements (cost $117,255,000) 117,255,000
- -----------------------------------------------------------------------------------------------
Total Investments
(cost $1,182,782,728) 99.1% 1,182,782,728
Cash And Receivables (Net) .9% 10,372,397
Net Assets 100.0% 1,193,155,125
<FN>
a The interest rate, which will change periodically, is based on the bank's prime rate.
See notes to financial statements.
</FN>
</TABLE>
The Fund 7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
May 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Cost Value
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Assets ($):
Investments in securities--See Statement
of Investments--Note 1(b) 1,182,782,728 1,182,782,728
Cash 936,159
Interest receivable 10,190,242
Prepaid expenses and other assets 109,082
1,194,018,211
- --------------------------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation and affiliates 423,614
Due to Distributor 368,094
Accrued expenses 71,378
863,086
- --------------------------------------------------------------------------------------------
Net Assets ($) 1,193,155,125
- --------------------------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 1,193,332,709
Accumulated net realized gain (loss) on investments (177,584)
- --------------------------------------------------------------------------------------------
Net Assets ($) 1,193,155,125
- --------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Class B
- --------------------------------------------------------------------------------------------
Net Assets ($) 542,168,046 650,987,079
Shares Outstanding 542,306,853 651,025,857
- --------------------------------------------------------------------------------------------
Net Asset Value Per Share ($) 1.00 1.00
</TABLE>
See notes to financial statements.
8
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended May 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Investment Income ($)
- --------------------------------------------------------------------------------------------
<S> <C>
Interest Income 29,824,320
Expenses:
Management fee--Note 2(a) 2,980,459
Distribution fees--Note 2(b) 1,192,184
Shareholder servicing costs--Note 2(c) 1,028,474
Registration fees 71,832
Custodian fees 48,618
Professional fees 23,506
Directors' fees and expenses--Note 2(d) 18,528
Prospectus and shareholders' reports 13,393
Miscellaneous 4,918
Total Expenses 5,381,912
Less--reduction in shareholder servicing costs due to
undertaking--Note 2(c) (113,589)
Net Expenses 5,268,323
Investment Income--Net 24,555,997
Net Realized Gain (Loss) on Investments--Note 1(b) ($) (10,473)
Net Increase in Net Assets Resulting from Operations 24,545,524
</TABLE>
See notes to financial statements.
The Fund 9
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
Six Months Ended
May 31, 1999 Year Ended
(Unaudited) November 30, 1998
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations ($):
Investment income--net 24,555,997 47,782,386
Net realized gain (loss) on investments (10,473) 822
Net Increase (Decrease) in Net Assets
Resulting from Operations 24,545,524 47,783,208
- ------------------------------------------------------------------------------------------------
Dividends to Shareholders From ($):
Investment income--net:
Class A shares (11,243,241) (25,243,444)
Class B shares (13,312,756) (22,538,942)
Total Dividends (24,555,997) (47,782,386)
- ------------------------------------------------------------------------------------------------
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A shares 2,441,115,939 4,880,850,136
Class B shares 955,687,931 1,928,335,745
Dividends reinvested:
Class A shares 11,141,558 24,694,104
Class B shares 12,824,056 21,778,602
Cost of shares redeemed:
Class A shares (2,449,963,419) (4,875,955,150)
Class B shares (963,503,058) (1,668,976,351)
Increase (Decrease) in Net Assets from
Capital Stock Transactions 7,303,007 310,727,086
Total Increase (Decrease) in Net Assets 7,292,534 310,727,908
- ------------------------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 1,185,862,591 875,134,683
End of Period 1,193,155,125 1,185,862,591
</TABLE>
See notes to financial statements.
10
<PAGE>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single fund share. Total return shows how much your investment in the fund would
have increased (or decreased) during each period, assuming you had reinvested
all dividends and distributions. These figures have been
derived from the fund's financial statements.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Six Months Ten Months
Ended Year Ended Ended
May 31, 1999 November 30, November 30, Year Ended January 31,
-------------------------------------
Class A Shares (Unaudited) 1998 1997(a) 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value, beginning
of period 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .021 .048 .040 .047 .052 .038 .027
Distributions:
Dividends from investment
income--net (.021) (.048) (.040) (.047) (.052) (.038) (.027)
Net asset value,
end of period 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Total Return (%) 4.29(b) 4.88 4.84(b) 4.75 5.35 3.90 2.69
Ratios/Supplemental
Data (%):
Ratio of expenses to
average net assets .74(b) .77 .82(b) .82 .84 .83 .81
Ratio of net investment
income to average net
assets 4.26(b) 4.77 4.78(b) 4.65 5.22 3.82 2.66
Net Assets, end of period
($ x 1,000) 542,168 539,878 510,289 519,861 530,054 513,345 536,884
</TABLE>
[FN]
a The Fund changed its fiscal year end from January 31 to November 30.
b Annualized.
See notes to financial statements.
</FN>
The Fund 11
<PAGE>
FINANCIAL Highlights (continued)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Six Months Ten Months
Ended Year Ended Ended
May 31, 1999 November 30, November 30, Year Ended January 31,
-----------------------
Class B Shares (Unaudited) 1998 1997(a) 1997 1996
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .020 .046 .038 .045 .042
Distributions:
Dividends from investment income--net (.020) (.046) (.038) (.045) (.042)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
Total Return (%): 4.05(c) 4.66 4.69(c) 4.58 5.04(c)
Ratios/Supplemental Data (%):
Ratio of expenses to average net assets 1.00(c) 0.97 1.00(c) 1.00 1.00(c)
Ratio of net investment income
to average net assets 4.01(c) 4.55 4.60(c) 4.48 5.01(c)
Decrease reflected in above expense ratios
due to undertakings by the Manager .03(c) .05 .05(c) .08 .10(c)
Net Assets, end of period ($ x 1,000) 650,987 645,984 364,845 90,175 58
<FN>
a The Fund changed fiscal year end from January 31 to November 30.
b From March 31, 1995 (commencement of initial offering) to January 31, 1996.
c Annualized.
See notes to financial statements.
</FN>
</TABLE>
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
General Government Securities Money Market Fund, Inc. (the "fund") is
registered under the Investment Company Act of 1940, as amended (the "Act"),
as a diversified open-end management investment company. The fund's
investment objective is to provide investors with as high a level of current
income as is consistent with the preservation of capital and the maintenance
of liquidity. The Dreyfus Corporation (the "Manager") serves as the fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund's shares, which are sold to the public without a sales load. The fund is
authorized to issue 16 billion shares of $.001 par value Common Stock. The fund
currently offers two classes of shares: Class A (15 billion shares authorized)
and Class B (1 billion shares authorized). Class A shares and Class B shares are
identical except for the services offered to and the expenses borne by each
class and certain voting rights. Class A shares are subject to a Service Plan
adopted pursuant to Rule 12b-1 under the Act, Class B shares are subject to a
Distribution Plan adopted pursuant to Rule 12b-1 under the Act and, in addition,
Class B shares are charged directly for sub-accounting services provided by
Service Agents (a securities dealer, financial institution or other industry
professional) at an annual rate of .05% of the value of the average daily net
assets of Class B shares.
It is the fund's policy to maintain a continuous net asset value per share of
$1.00; the fund has adopted certain investment, portfolio valuation and dividend
and distribution policies to enable it to do so. There is no assurance, however,
that the fund will be able to maintain a stable net asset value per share of
$1.00.
The fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
The Fund 13
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(a) Portfolio valuation: Investments in securities are valued at amortized cost,
which has been determined by the fund's Board of Directors to represent the fair
value of the fund's investments.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income is
recognized on the accrual basis. Cost of investments represents amortized cost.
Under the terms of the custody agreement, the fund receives net earnings credits
based on available cash balances left on deposit.
The fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the fund's Manager, subject to the seller's
agreement to repurchase and the fund's agreement to resell such securities at a
mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the fund's custodian and, pursuant to the
terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the fund will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the fund maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
(c) Dividends to shareholders: It is the policy of the fund to declare
dividends from investment income-net on each business day. Such dividends are
paid monthly. Dividends from net realized capital gain are normally
declared and paid annually, but the fund may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code of 1986, as amended (the "Code"). To the extent that net realized
capital gain can be offset by capital loss carryovers, it is the policy of
the fund not to distribute such gain.
14
<PAGE>
(d) Federal income taxes: It is the policy of the fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions
of the Code, and to make distributions of taxable income sufficient to relieve
it from substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $172,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1998. If
not applied, $19,000 of the carryover expires in fiscal 2003, $63,000
expires in fiscal 2004 and $90,000 expires in fiscal 2005.
At May 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
NOTE 2--Management Fee and Other Transactions
With Affiliates:
(a) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .50 of 1% of the value of the
fund's average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses of the fund, exclusive
of taxes, brokerage, interest on borrowings and extraordinary expenses, exceed
1-1/2% of the value of the fund's average net assets, the fund may deduct from
payments to be made to the Manager, or the Manager will bear such excess
expense. During the period ended May 31, 1999, there was no expense
reimbursement pursuant to the Agreement.
(b) Under the Service Plan with respect to Class A shares (the "Plan"), adopted
pursuant to Rule 12b-1 under the Act, Class A shares directly bear the costs of
preparing, printing and distributing prospectuses and statements of additional
information and implementing and of operating the Plan. In addition, Class A
shares reimburse (a) the Distributor for payments made for distributing their
shares and servicing shareholder accounts ("Servicing") and (b) the Manager,
Dreyfus Service
The Fund 15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
Corporation, a wholly-owned subsidiary of the Manager, and their
affiliates (collectively "Dreyfus") for payments made for Servicing, at an
aggregate annual rate of up to .20 of 1% of the value of the fund's average
daily net assets of Class A. Both the Distributor and Dreyfus may pay Service
Agents a fee in respect of Class A Shares owned by shareholders with whom the
Service Agent has a Servicing relationship or for whom the Service Agent is the
dealer or holder of record. The schedule of such fees and the basis upon which
such fees will be paid shall be determined from time to time by the fund's Board
of Directors. If a holder of Class A shares ceases to be a client of a Service
Agent, but continues to hold Class A shares, Dreyfus will be permitted to act as
a Service Agent in respect of such fund shareholders and receive payments under
the Service Plan for Servicing. The fees payable for Servicing are payable
without regard to actual expenses incurred. During the period ended May 31,
1999, Class A shares were charged $528,390 pursuant to the Plan.
Under the Distribution Plan with respect to Class B shares ("Class B
Distribution Plan"), adopted pursuant to Rule 12b-1 under the Act, Class B
shares directly bear the costs of preparing, printing and distributing
prospectuses and statements of additional information and of implementing and
operating the Class B Distribution Plan. In addition, Class B shares
reimburse the Distributor for payments made to third parties for
distributing Class B shares at an aggregate annual rate of up to .20 of
1% of the value of the average daily net assets of Class B. During the period
ended May 31, 1999, Class B shares were charged $663,794 pursuant to the Class
B Distribution Plan.
(c) Under the fund's Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan"), Class A shares reimburse 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 of Class A for certain allocated expenses of
providing personal services and/or maintaining shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the fund and
providing reports and other information,
16
<PAGE>
and services related to the maintenance of shareholder accounts. During the
period ended May 31, 1999, Class A shares were charged $78,029 pursuant to the
Class A Shareholder Services Plan.
Under the fund's Shareholder Services Plan with respect to Class B ("Class B
Shareholder Services Plan"), Class B shares pay the Distributor for the
provision of certain services to the holders of Class B shares a fee at an
annual rate of .25 of 1% of the value of the average daily net assets of
Class B. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding
Class B shares and providing reports and other information, and
services related to the maintenance of shareholder accounts. The
Distributor may make payments to Service Agents in respect of these
services. The Distributor determines the amounts to be paid to Service Agents.
The Manager has undertaken, through May 31, 1999, that if the aggregate expenses
of Class B of the fund, exclusive of taxes, brokerage, interest on borrowings
and extraordinary expenses, exceed 1% of the value of the average daily net
assets of Class B, the Manager will reimburse the expenses of the fund under the
Class B Shareholder Services Plan to the extent of any excess expense and up to
the full fee payable under the Class B Shareholder Services Plan. During the
period ended May 31, 1999, Class B shares were charged $995,691 pursuant to the
Class B Shareholder Services Plan, of which $113,589 was reimbursed by the
Manager.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement, for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended May 31, 1999, the fund was charged $26,889, pursuant to the transfer
agency agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
The Fund 17
<PAGE>
General Government
Securities Money Market Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call 1-800-645-6561
By mail Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
By E-mail Send your request
to [email protected]
On the Internet Information
can be viewed online or
downloaded from:
http://www.dreyfus.com
(C) 1999 Dreyfus Service Corporation 975/698SA995
