General Government
Securities Money
Market Fund
SEMIANNUAL REPORT
May 31, 2000
(reg.tm)
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
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
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Back Cover
The Fund
General Government Securities
Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for General Government
Securities Money Market Fund, covering the six-month period from December 1,
1999 through May 31, 2000. Inside, you'll find valuable information about how
the fund was managed during the reporting period, including a discussion with
the fund's portfolio manager, Bernard W. Kiernan, Jr.
When the reporting period began, international and domestic economies were
growing at a very strong pace, giving rise to concerns that long-dormant
inflationary pressures might reemerge. Consumers continued to spend heavily,
unemployment levels reached new lows and the stock market, while highly
volatile, continued to climb.
Because robust economic growth may trigger unwanted inflationary pressures, the
Federal Reserve Board raised short-term interest rates three times during the
reporting period. In total, the Federal Reserve Board has raised short-term
interest rates by 1.75 percentage points since late June 1999. While these
economic influences overall adversely affected long-term bonds, they positively
influenced money market yields.
We appreciate your confidence over the past six months and we look forward to
your continued participation in General Government Securities Money Market Fund.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
June 15, 2000
2
DISCUSSION OF FUND PERFORMANCE
Bernard W. Kiernan, Jr., Portfolio Manager
How did General Government Securities Money Market Fund perform during the
period?
For the six-month period ended May 31, 2000, the fund produced an annualized
yield of 5.00% for Class A shares and 4.76% for Class B shares. When taking into
account the effect of compounding, the fund produced an annualized effective
yield of 5.12% for Class A shares and 4.87% for Class B shares.(1)
What is the fund's investment approach?
The fund seeks a high level of current income as consistent with the
preservation of capital and the maintenance of liquidity.
To pursue this goal, the fund invests in securities issued or guaranteed by the
U.S. Government or its agencies or instrumentalities and repurchase agreements
in respect of these securities.
What factors influenced the fund's performance?
When the reporting period began, the Federal Reserve Board (the "Fed") opted to
avoid taking any actions at its December meeting in an apparent attempt to quiet
market concerns of potential Y2K disruptions. In addition, the Fed added
liquidity to the banking system over year-end, leading to temporary fluctuations
in short-term interest rates. Despite this short-lived volatility, very few
significant Y2K problems were reported. With such concerns behind them, the Fed
-- and the market -- turned their attention back to the central question: Would
strong economic growth ignite inflation?
After the start of the new year, economic data showed that GDP growth in the
fourth quarter of 1999 had quickened to a stunning 7.3%. The Fed grew concerned
that economic growth was accelerating past a limit that could be sustained
without triggering destructive
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
levels of inflation. As a result, the Fed raised interest rates for the fourth
time in this cycle of tightening by 0.25 percentage points in early February and
a fifth time in March by 0.25 percentage points.
First quarter 2000 figures showed GDP growth at a less torrid but still strong
5.4%. Continuing indications that prices were moving higher added to the money
market's concerns and greater than expected domestic demand for goods and
services continued. Events overseas have also impacted the domestic economy.
Following the Asian economic crisis of 1998, demand outside the U.S. weakened,
enabling the U.S. economy to grow at an unusually fast pace without setting off
inflation. As overseas economies recovered, demand for raw materials picked up
as well, putting upward pressure on prices.
In the face of gradual and relatively mild interest-rate hikes, consumer
confidence and consumer demand showed few signs of abating. Home and auto sales
continued at record paces into the second quarter of 2000. The tightest labor
market the U.S. has seen in the past 30 years added the threat of wage-driven
inflationary pressure. Such factors led the Fed to its largest interest-rate
hike in the current cycle of credit tightening: a 0.50 percentage-point increase
at its May 16th meeting.
There are signs that the Fed's series of interest-rate hikes has begun to slow
the economy. Retail sales declined in both April and May, housing starts have
slowed dramatically and inflation figures have been lower than market
expectations. But economic signals remained contradictory. Market participants
seemed to believe that not enough evidence about the economy's direction will be
in place by the Fed' s June 28th meeting to warrant further tightening. More
market data will be available as the August meeting approaches and that in turn
may influence future changes in the Fed's monetary policy.
4
What is the fund's current strategy?
In anticipation of rising interest rates throughout the six-month reporting
period, the fund adopted a somewhat defensive strategy. Most significantly, we
reduced the fund' s average maturity in order to increase our flexibility.
Shorter maturities were designed to help the fund take advantage of any
potential opportunities from any additional interest-rate increases, as well as
to protect the fund from potential volatility.
As of May 31, 2000, the fund's average maturity remained relatively short. We
will continue to monitor the situation, including the economy and changes in the
Fed' s monetary policy, and we will look to take what we believe are appropriate
actions in response with respect to the fund's portfolio, including its average
portfolio maturity.
June 15, 2000
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS
FLUCTUATE. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR
THE U.S. GOVERNMENT. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND. YIELDS PROVIDED FOR THE FUND'S CLASS B SHARES REFLECT THE ABSORPTION OF
FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT
THAT MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT
BEEN ABSORBED, THE FUND'S CLASS B SHARES' YIELDS WOULD HAVE BEEN LOWER. WITHOUT
THE FUND'S EXPENSE ABSORPTION, THE FUND'S CLASS B SHARES WOULD HAVE PRODUCED AN
ANNUALIZED NET YIELD OF 4.73% AND AN ANNUALIZED EFFECTIVE NET YIELD OF 4.84%.
The Fund 5
STATEMENT OF INVESTMENTS
<TABLE>
STATEMENT OF INVESTMENTS
May 31, 2000 (Unaudited)
Annualized
Yield on
Date of Principal
U.S. GOVERNMENT AGENCIES--103.9% Purchase (%) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Federal Home Loan Banks, Discount Notes
6/1/2000 6.30 77,000,000 77,000,000
6/23/2000 6.36 56,352,000 56,133,840
7/13/2000 5.50 40,000,000 39,996,603
7/19/2000 6.20 25,000,000 24,972,387
7/28/2000 5.70 25,000,000 24,786,646
12/1/2000 5.86 47,400,000 47,373,693
1/18/2001 6.35 25,000,000 24,991,590
Federal Home Loan Banks, Floating Rate Notes
6/21/2000 6.60 (a) 100,000,000 99,997,856
8/11/2000 6.57 (a) 100,000,000 100,000,000
10/5/2000 6.62 (a) 50,000,000 50,000,000
3/29/2001 6.52 (a) 50,000,000 49,991,972
4/6/2001 6.51 (a) 75,000,000 74,987,638
Federal Home Loan Mortgage Corporation,
Discount Notes
6/8/2000 5.96 25,000,000 24,971,465
6/13/2000 5.42 25,000,000 24,957,167
Federal National Mortgage Association,
Discount Notes
6/15/2000 6.04 100,000,000 99,768,612
8/17/2000 5.77 20,000,000 19,766,433
9/21/2000 6.23 150,000,000 147,179,777
Federal National Mortgage Association,
Floating Rate Notes
8/9/2000 6.67 (a) 100,000,000 99,990,574
6/7/2001 6.57 (a) 50,000,000 49,958,545
11/5/2001 6.55 (a) 100,000,000 99,958,789
Student Loan Marketing Association,
Discount Notes
6/29/2000 6.36 37,689,000 37,503,738
Student Loan Marketing Association, Notes
11/1/2000 5.75 8,654,000 8,657,810
TOTAL U.S. GOVERNMENT AGENCIES
(cost $1,282,945,135) 1,282,945,135
6
Annualized
Yield on
Date of Principal
REPURCHASE AGREEMENTS--.4% Purchase (%) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
Barclays Capital Corp.
dated 5/31/2000, due 6/1/2000 in the amount
of $4,654,776 (fully collateralized by
$4,670,000 U.S. Treasury Notes, 5.375%,
due 7/31/2000, value $4,750,791) 5.65 4,654,000 4,654,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $1,287,599,135) 104.3% 1,287,599,135
LIABILITIES, LESS CASH AND RECEIVABLES (4.3%) (52,790,889)
NET ASSETS 100.0% 1,234,808,246
(A) THE INTEREST RATE, WHICH WILL CHANGE PERIODICALLY, IS BASED ON THE BANK'S PRIME RATE.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 7
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000 (Unaudited)
Cost Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS ($):
Investments in securities--See Statement of
Investments--Note 1(b) 1,287,599,135 1,287,599,135
Interest receivable 7,644,856
Prepaid expenses and other assets 77,983
1,295,321,974
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 877,938
Cash overdraft due to Custodian 9,635,828
Payable for investment securities purchased 49,958,545
Accrued expenses 41,417
60,513,728
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NET ASSETS ($) 1,234,808,24
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 1,235,011,86
Accumulated net realized gain (loss) on investments (203,616)
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($) 1,234,808,24
</TABLE>
NET ASSET VALUE PER SHARE
Class A Class B
--------------------------------------------------------------------------------
Net Assets ($) 597,141,765 637,666,481
Shares Outstanding 597,293,340 637,718,524
--------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
8
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 37,524,405
EXPENSES:
Management fee--Note 2(a) 3,248,165
Distribution fees--Note 2(b) 1,299,266
Shareholder servicing costs--Note 2(c) 1,112,352
Registration fees 69,491
Custodian fees 53,563
Professional fees 25,455
Directors' fees and expenses--Note 2(d) 19,289
Prospectus and shareholders' reports 12,866
Miscellaneous 6,899
TOTAL EXPENSES 5,847,346
Less--reduction in Management fee
due to undertaking--Note 2(a) (107,807)
NET EXPENSES 5,739,539
INVESTMENT INCOME--NET 31,784,866
--------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($) (19,382)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 31,765,484
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 9
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
May 31, 2000 Year Ended
(Unaudited) November 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 31,784,866 51,765,557
Net realized gain (loss) on investments (19,382) (17,123)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 31,765,484 51,748,434
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A Shares (15,771,484) (24,572,923)
Class B Shares (16,013,382) (27,192,634)
TOTAL DIVIDENDS (31,784,866) (51,765,557)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A Shares 3,167,893,020 4,892,448,521
Class B Shares 1,036,703,057 1,874,341,394
Dividends reinvested:
Class A Shares 15,455,516 24,329,688
Class B Shares 15,246,644 26,105,216
Cost of shares redeemed:
Class A Shares (3,196,708,374) (4,846,137,806)
Class B Shares (1,073,458,533) (1,887,236,183)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (34,868,670) 83,850,830
TOTAL INCREASE (DECREASE) IN NET ASSETS (34,888,052) 83,833,707
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 1,269,696,298 1,185,862,591
END OF PERIOD 1,234,808,246 1,269,696,298
SEE NOTES TO FINANCIAL STATEMENTS.
10
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All 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>
Six Months Year Ended Ten Months Year Ended
Ended November 30, Ended January 31,
May 31, 2000 ________________ November 30, ______________________
CLASS A SHARES (Unaudited) 1999 1998 1997(a) 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .025 .043 .048 .040 .047 .052 .038
Distributions:
Dividends from investment
income--net (.025) (.043) (.048) (.040) (.047) (.052) (.038)
Net asset value, end of
period 1.00 1.00 1.00 1.00 1.00 1.00 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return (%) 5.05(b) 4.42 4.88 4.84(b) 4.75 5.35 3.90
------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental
Data (%):
Ratio of expenses to
average net assets .76(b) .76 .77 .82(b) .82 .84 .83
Ratio of net investment
income to average
net assets 5.01(b) 4.35 4.77 4.78(b) 4.65 5.22 3.82
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 597,142 610,511 539,878 510,289 519,861 530,054 513,345
(A) THE FUND CHANGED ITS FISCAL YEAR END FROM JANUARY 31 TO NOVEMBER 30.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 11
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Year Ended Ten Months Year Ended
Ended November 30, Ended January 31,
May 31, 2000 ________________ November 30, __________________
CLASS B SHARES (Unaudited) 1999 1998 1997(a) 1997 1996(b)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .024 .041 .046 .038 .045 .042
Distributions:
Dividends from investment
income--net (.024) (.041) (.046) (.038) (.045) (.042)
Net asset value, end of
period 1.00 1.00 1.00 1.00 1.00 1.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 4.81(c) 4.17 4.66 4.69(c) 4.58 5.04(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA (%):
Ratio of expenses to
average net assets 1.00(c) 1.00 .97 1.00(c) 1.00 1.00(c)
Ratio of net investment
income to average
net assets 4.76(c) 4.09 4.55 4.60(c) 4.48 5.01(c)
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation .03(c) .03 .05 .05(c) .08 .10(c)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 637,666 659,185 645,984 364,845 90,175 58
(A) THE FUND CHANGED ITS 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.
</TABLE>
12
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
General Government Securities Money Market Fund (the "fund") is a separate
diversified series of General Government Securities Money Market Funds, Inc.
(the "Company") which is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company and operates
as a series company, currently offering two series, including the fund. 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., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor, which
are sold to the public without a sales charge. 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.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on pro rata basis.
The Fund 13
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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.
(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.
14
(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, if any, 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.
(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 $189,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1999. If not
applied, $19,000 of the carryover expires in fiscal 2003, $63,000 expires in
fiscal 2004, $90,000 expires in fiscal 2005 and $17,000 expires in fiscal 2007.
At May 31, 2000, 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 fees, 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
The Fund 15
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
excess expense. The Manager had undertaken through May 31, 2000 to reduce the
management fee paid by the fund, to the extent that the fund's aggregate annual
expenses (exclusive of certain expenses as described above) exceeded an annual
rate of 1% of the value of the fund's average daily net assets of Class B
shares. The reduction in management fee, pursuant to the undertaking amounted to
$107,807 during the period ended May 31, 2000.
(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 pay the distributor for distributing their shares and servicing
shareholder accounts (" Servicing" ) and advertising and marketing relating to
Class A shares at an aggregate annual rate of up to .20 of 1% of the value of
the average daily net assets of Class A. The distributor may pay one or more
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, the Manager 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, 2000, Class A shares were charged $628,017 pursuant to the
Plan of which $320,494 was paid to DSC.
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 pay the
distributor 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, 2000, Class B shares were charged $671,249 pursuant to the
Class B Distribution Plan, of which $94,915 was paid to DSC.
16
(C) Under the fund's Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan"), Class A shares pay DSC 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, and
services related to the maintenance of shareholder accounts. During the period
ended May 31, 2000, Class A shares were charged $59,154 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. During the period ended May 31, 2000, Class B shares were
charged $1,006,874 pursuant to the Class B Shareholder Services Plan, of which
$55,027 was paid to DSC.
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, 2000, the fund was charged $25,830, pursuant to the transfer
agency agreement.
The Fund 17
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 13, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $50,000 and an attendance fee of $6,500 for each meeting attended
in person and $500 for telephone meetings. These fees are allocated among the
funds in the Fund Group. The Chairman of the Board receives an additional 25% of
such compensation. Prior to April 13, 2000, each Board member who was not an
"affiliated person" as defined in the Act received from the fund an annual fee
of $2,500 and an attendance fee of $500 per meeting. The Chairman of the Board
received an additional 25% of such compensation. Subject to the fund's Director
Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the
fund's annual retainer fee and per meeting fee paid at the time the Board member
achieved emeritus status.
18
NOTES
For More Information
General Government Securities Money Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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) 2000 Dreyfus Service Corporation 975SA005
================================================================================
General
Treasury Prime
Money Market Fund
SEMIANNUAL REPORT
May 31, 2000
(reg.tm)
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
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
7 Statement of Assets and Liabilities
8 Statement of Operations
9 Statement of Changes in Net Assets
10 Financial Highlights
13 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
General Treasury Prime
Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for General Treasury Prime
Money Market Fund, covering the six-month period from December 1, 1999 through
May 31, 2000. Inside you'll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Bernard W. Kiernan, Jr.
When the reporting period began, international and domestic economies were
growing at a very strong pace, giving rise to concerns that long-dormant
inflationary pressures might reemerge. Consumers continued to spend heavily,
unemployment levels reached new lows and the stock market, while highly
volatile, continued to climb.
Because robust economic growth may trigger unwanted inflationary pressures, the
Federal Reserve Board raised short-term interest rates three times during the
reporting period. In total, the Federal Reserve Board has raised short-term
interest rates by 1.75 percentage points since late June 1999. While these
economic influences overall adversely affected long-term bonds, they positively
influenced money market yields.
We appreciate your confidence over the past six months and we look forward to
your continued participation in General Treasury Prime Money Market Fund.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
June 15, 2000
2
DISCUSSION OF FUND PERFORMANCE
Bernard W. Kiernan, Jr., Portfolio Manager
How did General Treasury Prime Money Market Fund perform during the period?
For the six-month period ended May 31, 2000, the fund produced an annualized
yield of 4.79% for Class A shares, 4.58% for Class B shares and 4.53% for Class
X shares. Taking into account the effect of compounding, the fund created an
annualized effective yield of 4.89% for Class A shares, 4.68% for Class B shares
and 4.62% for Class X shares.(1)
What is the fund's investment approach?
The fund seeks a high level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. To pursue this goal,
the fund only invests in securities issued or guaranteed as to principal and
interest by the U.S. Government.
What factors influenced the fund's performance?
When the reporting period began, the Federal Reserve Board (the "Fed") opted to
avoid taking any actions at its December meeting in an apparent attempt to quiet
market concerns of potential Y2K disruptions. In addition, the Fed added
liquidity to the banking system over year-end, leading to temporary fluctuations
in short-term interest rates. Despite this short-lived volatility, very few
significant Y2K problems were reported. With such concerns behind them, the Fed
-- and the market -- turned their attention back to the central question: Would
strong economic growth ignite inflation?
After the start of the new year, economic data showed that GDP growth in the
fourth quarter of 1999 had quickened to a stunning 7.3%. The Fed grew concerned
that economic growth was accelerating past a limit that could be sustained
without triggering destructive levels of inflation. As a result, the Fed raised
interest rates for the fourth time in this cycle of tightening by 0.25
percentage points in early February and a fifth time in March by 0.25 percentage
points.
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
First quarter 2000 figures showed GDP growth at a less torrid but still strong
5.4%. Continuing indications that prices were moving higher added to the money
market's concerns and greater than expected domestic demand for goods and
services continued. Events overseas have also impacted the domestic economy.
Following the Asian economic crisis of 1998, demand outside the U.S. weakened,
enabling the U.S. economy to grow at an unusually fast pace without setting off
inflation. As overseas economies recovered, demand for raw materials picked up
as well, putting upward pressure on prices.
In the face of gradual and relatively mild interest-rate hikes, consumer
confidence and consumer demand showed few signs of abating. Home and auto sales
continued at record paces into the second quarter of 2000. The tightest labor
market the U.S. has seen in the past 30 years added the threat of wage-driven
inflationary pressure. Such factors led the Fed to its largest rate hike in the
current cycle of credit tightening: a 0.50 percentage-point increase at its May
16th meeting.
There are signs that the Fed's series of interest-rate hikes has begun to slow
the economy. Retail sales declined in both April and May, housing starts have
slowed dramatically and inflation figures have been lower than market
expectations. But economic signals remained contradictory. Market participants
seemed to believe that not enough evidence about the economy's direction will be
in place by the Fed's June 28th meeting to warrant further rate tightening. More
market data will be available as the August meeting approaches and that in turn
may influence future changes in the Fed's monetary policy.
What is the fund's current strategy?
In anticipation of rising interest rates throughout the six-month reporting
period, the fund adopted a somewhat defensive strategy. Most significantly, we
reduced the fund' s average maturity in order to increase our flexibility.
Shorter maturities were designed to help the fund take advantage of any
potential opportunities from any additional interest-rate increases, as well as
to protect the fund from potential volatility.
4
As of May 31, 2000, the fund's average maturity remained relatively short. We
will continue to monitor the situation, including the economy and changes in the
Fed' s monetary policy, and we will look to take what we believe are appropriate
actions in response with respect to the fund's portfolio, including its average
portfolio maturity.
June 15, 2000
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS
FLUCTUATE. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR
THE U.S. GOVERNMENT. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND. YIELD FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY THE
DREYFUS CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT THAT MAY BE EXTENDED,
TERMINATED OR MODIFIED AT ANY TIME. THE ANNUALIZED YIELD AND THE ANNUALIZED
EFFECTIVE YIELD WERE DUE EXCLUSIVELY TO THE APPLICATION OF THIS EXPENSE
ABSORPTION.
The Fund 5
STATEMENT OF INVESTMENTS
May 31, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
U.S. TREASURY BILLS--107.9% Amount ($) Value ($)
--------------------------------------------------------------------------------
5.53%, 6/22/2000 134,000 133,573
5.70%, 6/29/2000 25,000 24,890
5.66%, 7/6/2000 212,000 210,843
5.61%, 7/13/2000 104,000 103,327
5.65%, 7/20/2000 80,000 79,393
5.82%, 8/3/2000 12,000 11,880
6.05%, 8/10/2000 55,000 54,362
6.07%, 8/17/2000 30,000 29,616
--------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $647,884) 107.9% 647,884
LIABILITIES, LESS CASH AND RECEIVABLES (7.9%) (47,375)
NET ASSETS 100.0% 600,509
SEE NOTES TO FINANCIAL STATEMENTS.
6
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 647,884 647,884
Prepaid expenses 43,750
691,634
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 1,863
Cash overdraft due to Custodian 67
Accrued expenses and other liabilities 89,195
91,125
--------------------------------------------------------------------------------
NET ASSETS ($) 600,509
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 600,324
Accumulated net realized gain (loss) on investments 185
--------------------------------------------------------------------------------
NET ASSETS ($) 600,509
<TABLE>
NET ASSET VALUE PER SHARE
Class A Class B Class X
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Assets ($) 1,001 598,508 1,000
Shares Outstanding 1,001 598,323 1,000
-----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 1.00 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 7
STATEMENT OF OPERATIONS
From December 1, 1999 (commencement of operations) to
May 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 13,018
EXPENSES:
Management fee--Note 2(a) 1,145
Registration fees 31,408
Auditing fees 12,842
Prospectus and shareholders' reports 2,205
Shareholder servicing costs--Note 2(c) 683
Distribution fees--Note 2(b) 463
Custodian fees 184
Directors' fees and expenses--Note 2(d) 57
Legal fees 12
Miscellaneous 801
TOTAL EXPENSES 49,800
Less--expense reimbursement from The Dreyfus Corporation
due to undertaking--Note 2(a) (47,541)
NET EXPENSES 2,259
INVESTMENT INCOME--NET 10,759
--------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($): 185
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 10,944
SEE NOTES TO FINANCIAL STATEMENTS.
8
STATEMENT OF CHANGES IN NET ASSETS
From December 1, 1999 (commencement of operations) to
May 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 10,759
Net realized gain (loss) on investments 185
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 10,944
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (924)
Class B shares (9,397)
Class X shares (438)
TOTAL DIVIDENDS (10,759)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares 41,000
Class B shares 2,258,503
Class X shares 20,978
Dividends reinvested:
Class A shares 781
Class B shares 9,259
Class X shares 391
Cost of shares redeemed:
Class A shares (40,780)
Class B shares (1,669,439)
Class X shares (20,369)
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 600,324
TOTAL INCREASE (DECREASE) IN NET ASSETS 600,509
--------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period --
END OF PERIOD 600,509
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 9
FINANCIAL HIGHLIGHTS (Unaudited)
The following tables describe the performance for each share class for the
period from December 1, 1999 (commencement of operations) to May 31, 2000. All
information reflects financial results for a single fund share. Total return
shows how much your investment in the fund would have increased (or decreased)
during each period, assuming you had reinvested all dividends and distributions.
These figures have been derived from the fund's financial statements.
CLASS A SHARES
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00
Investment Operations:
Investment income--net .024
Distributions:
Dividends from investment income--net (.024)
Net asset value, end of period 1.00
--------------------------------------------------------------------------------
TOTAL RETURN (%) 4.83(a)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .80(a)
Ratio of net investment income
to average net assets 4.75(a)
Decrease reflected in above expense ratio
due to undertakings by The Dreyfus Corporation 20.90(a)
--------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 1
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
10
CLASS B SHARES
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00
Investment Operations:
Investment income--net .023
Distributions:
Dividends from investment income--net (.023)
Net asset value, end of period 1.00
--------------------------------------------------------------------------------
TOTAL RETURN (%) 4.63(a)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.00(a)
Ratio of net investment income
to average net assets 4.69(a)
Decrease reflected in above expense ratio
due to undertakings by The Dreyfus Corporation 20.66(a)
--------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 599
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 11
FINANCIAL HIGHLIGHTS (continued)
CLASS X SHARES
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00
Investment Operations:
Investment income--net .023
Distributions:
Dividends from investment income--net (.023)
Net asset value, end of period 1.00
--------------------------------------------------------------------------------
TOTAL RETURN (%) 4.57(a)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.05(a)
Ratio of net investment income
to average net assets 4.49(a)
Decrease reflected in above expense ratio
due to undertakings by The Dreyfus Corporation 20.84(a)
--------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 1
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
12
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
General Treasury Prime Money Market Fund (the "fund") is a separate diversified
series of General Government Securities Money Market Funds, Inc.(the "Company"),
which is registered under the Investment Company Act of 1940, as amended (the
"Act"), as an open-end management investment company and operates as a series
company, currently offering two series, including the fund. 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.,
which is a wholly-owned subsidiary of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares, which
are sold to the public without a sales charge. Prior to March 22, 2000, Premier
Mutual Fund Services, Inc. was the distributor. The fund is authorized to issue
3 billion shares of $.001 par value Common Stock. The fund currently offers
three classes of shares: Class A (1 billion shares authorized), Class B (1
billion shares authorized) and Class X (1 billion shares authorized). Class A,
Class B and Class X 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
and Class X shares are subject to a Distribution Plan adopted pursuant to Rule
12b-1 under the Act and Class X shares are subject to Shareholder Services Plan.
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. The funds fiscal year end is November 30,
2000.
The Fund 13
NOTES TO FINANCIAL STATEMENTS (Unaudited)
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on pro rata basis.
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.
(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 received net earnings credits
of $99 based on available cash balances left on deposit. Income earned under
this arrangement is included in interest income.
(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, if any, it is the policy of the fund not to
distribute such gain.
14
(d) Federal income taxes: It is the policy of the fund 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.
At May 31, 2000, 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 fees, 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. The Manager had undertaken through May 31, 2000 to reduce the
management fee paid by the fund, to the extent that the fund's aggregate annual
expenses (exclusive of certain expenses as described above) exceeded an annual
rate of .80 of 1% for Class A, 1% for Class B and 1.05% for Class X shares of
the value of the find' s average daily net assets. The expense reimbursement
pursuant to the undertaking, amounted to $4,074 for Class A, $41,436 for Class B
and $2,031 for Class X shares, during the period ended May 31, 2000.
(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 cost of
preparing, printing and distributing prospectuses and statements of additional
information and implementing and operating the Plan. In addition, Class A shares
pay the distributor for distributing
The Fund 15
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
their shares and servicing shareholder accounts ("Servicing") and advertising
and marketing relating to Class A shares at an aggregate annual rate of up to
.20 of 1% of the value of the average daily net assets of Class A. The
distributor may pay one or more 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, the Manager 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, 2000, Class A shares
were charged $39 pursuant to the Plan, of which $19 was paid to DSC.
Under the Distribution Plan with respect to Class B shares and Class X shares
("Class B and Class X Distribution Plans"), adopted pursuant to Rule 12b-1 under
the Act, Class B and Class X shares directly bear the costs of preparing,
printing and distributing prospectuses and statements of additional information
and of implementing and operating the Class B and Class X Distribution Plans. In
addition, Class B and Class X shares pay the distributor for payments made to
third parties for distributing their shares at an aggregate annual rate of up to
. 20% of 1% and .25% of 1%, respectively, of the value of the average daily net
assets of Class B and Class X. During the period ended May 31, 2000, Class B and
Class X shares were charged $400 and $24, respectively, pursuant to the Class B
and Class X Distribution Plans, of which $275 and $12 were paid to DSC,
respectively.
16
(c) Under the fund's Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan"), Class A shares pay DSC 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 Class A shares and providing reports and other information,
and services related to the maintenance of shareholder accounts. Under the
fund' s Shareholder Services Plan with respect to Class B and Class X ("Class B
and Class X Shareholder Services Plans"), Class B and Class X shares pay the
distributor for the provision of certain services to the holders of Class B And
Class X shares a fee at an annual rate of .25 of 1% of the value of the average
daily net assets of Class B and Class X. The services provided may include
personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding Class B and Class X 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. During the period ended May 31, 2000, $600 and $24 , respectively, were
charged pursuant to the Class B and Class X Shareholder Services Plans, of which
$412 and $12, respectively, were paid to DSC.
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, 2000, the fund was charged $84,325 pursuant to the transfer agency
agreement.
The Fund 17
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 13, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $50,000 and an attendance fee of $6,500 for each meeting attended
in person and $500 for telephone meetings. These fees are allocated among the
funds in the Fund Group. The Chairman of the Board receives an additional 25% of
such compensation. Prior to April 13, 2000, each Board member who was not an
"affiliated person" as defined in the Act received from the fund an annual fee
of $2,500 and an attendance fee of $500 per meeting. The Chairman of the Board
received an additional 25% of such compensation. Subject to the fund's Director
Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the
fund's annual retainer fee and per meeting fee paid at the time the Board member
achieved emeritus status.
18
NOTES
The Fund 19
For More Information
General Treasury Prime Money Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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) 2000 Dreyfus Service Corporation 387SA005
