General Municipal
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
15 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
18 Financial Highlights
21 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
General Municipal
Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for General Municipal 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, Colleen Meehan.
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 municipal bonds, they
positively influenced tax-exempt money market yields.
We appreciate your confidence over the past six months and we look forward to
your continued participation in General Municipal 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
Colleen Meehan, Portfolio Manager
How did General Municipal Money Market Fund perform during the period?
For the six-month period ended May 31, 2000, the fund's Class A shares produced
an annualized yield of 3.26%, Class B shares provided a 2.89% annualized yield
and Class X shares provided a 2.87% annualized yield. Taking into account the
effects of compounding, the fund's Class A, B and X shares provided annualized
effective yields of 3.31% , 2.92% and 2.91% , respectively, for the same
period.(1)
We attribute the fund' s performance to higher short-term interest rates
implemented by the Federal Reserve Board (the "Fed"), which helped enhance
tax-exempt money market yields and interest-rate trends.
What is the fund's investment approach?
The fund seeks to maximize current income exempt from federal personal income
tax to the extent that is consistent with the preservation of capital and the
maintenance of liquidity.
In so doing, we employ two primary strategies. First, we attempt to add value by
constructing a diverse portfolio of high quality, tax-exempt money market
instruments from issuers throughout the United States and its territories.
Second, we actively manage the portfolio's average maturity in anticipation of
what we believe are supply-and-demand changes in the short-term municipal
marketplace and interest-rate trends.
For example, if we expect an increase in short-term supply, we may decrease the
average maturity of the portfolio, which could enable us to take advantage of
opportunities when short-term supply increases. Generally, yields tend to rise
when there is an increase in new-issue supply competing for investor interest.
New securities are generally issued with maturities in the one-year range, which
in turn may lengthen the
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
portfolio's average maturity. If we anticipate limited new-issue supply, we may
then look to extend the portfolio's average maturity to maintain current yields
for as long as we believe practical. At other times, we try to maintain an
average maturity that reflects our view of short-term interest-rate trends and
future supply-and-demand considerations.
What other factors influenced the fund's performance?
The fund was positively influenced over the past six months by robust U.S.
economic growth and rising interest rates.
By the time the reporting period began on December 1, 1999, it had become
apparent that the high rate of economic growth in the United States was
unsustainable. Consumer confidence remained near a 30-year high, oil prices
bounced back from the previous year's lows, and employment remained strong, with
hourly wages rising. These economic forces raised concerns among fixed-income
investors that long-dormant inflationary pressures might reemerge. In response,
the Fed raised short-term interest rates three times during the reporting
period. When combined with the three interest-rate hikes implemented before the
reporting period began, the Fed had raised interest rates a total of 1.75
percentage points since last summer.
However, tax-exempt money market yields generally rose less in comparison to
taxable yields over the past six months. This was due to the fact that many of
the nation's states and municipalities enjoyed higher tax revenues during the
reporting period. As a result, this reduced their need to borrow and resulted in
a lower supply of securities.
What is the fund's current strategy?
While our strategy continues to involve active management of the portfolio's
weighted average maturity and asset mix according to our interest-rate and
supply-and-demand expectations, we believe that the current economic outlook is
uncertain. On the one hand, many in the investment community believe that the
Fed is likely to raise short-term interest rates further at their next meeting
in late June. On the other hand, recent economic reports suggest that the
economy may be
4
slowing in response to previous interest-rate increases, creating the
possibility that the current round of rate hikes may be over. Also, yields
generally tend to rise when there is an increase in new-issue supply competing
for investor interest.
In the face of these uncertainties, we have recently adjusted the portfolio's
average weighted maturity toward a point that is modestly longer than other
federally tax-exempt money market funds. This maturity management strategy was
designed to help us lock in then current yields while retaining the flexibility
required to act quickly if interest rates rise further.
Our asset mix currently emphasizes Variable Rate Demand Notes ("VRDNs") because
of the competitively high yields they offer. VRDNs generally feature adjustable
yields, short maturities and afford the portfolio a high degree of liquidity and
credit quality. We have also increased our holdings of insured municipal bonds,
pre-refunded securities and tax-exempt commercial paper. We have focused
primarily on securities with maturities in the three- to six-month range which
should help protect the fund's tax-exempt yield but not drastically extend the
fund's weighted average maturity. Of course, portfolio composition is subject to
change at any time.
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. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES, AND SOME
INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR
CERTAIN INVESTORS. 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 $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY
BY INVESTING IN THE FUND. YIELDS PROVIDED FOR THE FUND'S CLASS B AND CLASS
X SHARES REFLECT THE ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION
PURSUANT TO AN UNDERTAKING IN EFFECT THAT MAY BE EXTENDED, TERMINATED OR
MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT BEEN ABSORBED, THE FUND'S
CLASS B AND CLASS X SHARES WOULD HAVE BEEN LOWER. WITHOUT THE FUND'S
EXPENSE ABSORPTION, THE FUND'S CLASS B SHARES WOULD HAVE PRODUCED AN
ANNUALIZED NET YIELD OF 2.81% AND AN ANNUALIZED EFFECTIVE NET YIELD OF
2.85%, AND THE FUND'S CLASS X SHARES WOULD HAVE PRODUCED AN ANNUALIZED NET
YIELD OF 2.67% AND AN ANNUALIZED EFFECTIVE NET YIELD OF 2.71%.
The Fund 5
May 31, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
Principal
TAX EXEMPT INVESTMENTS--99.2% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ALABAMA--3.8%
Cossa County, IDB, IDR,VRDN (Avondale Mills Inc. Project)
4.45% (LOC; Wachovia Bank and Trust Co.) 7,500,000 (a) 7,500,000
Macintosh, IDB, EIR, Refunding, VRDN (CIBA Specialty)
4.60%, Series E (Corp. Guaranty; CIBA Specialty Chemicals) 11,800,000 (a) 11,800,000
Stevenson, IDB, EIR, Refunding, VRDN (Mead Corp. Project)
4.45%, Series A (LOC; Bank Austria) 6,900,000 (a) 6,900,000
ARIZONA--4.7%
Apache County Industrial Development Authority, IDR, VRDN
(Tucson Electric Power Springerville Project)
4.15%, Series B (LOC; The Bank of New York) 6,300,000 (a) 6,300,000
Arizona Educational Loan Marketing Corporation,
Educational Loan Revenue, VRDN
4.20%, Series A (Insured; MBIA and LOC;
State Street Bank and Trust Co.) 10,675,000 (a) 10,675,000
Phoenix Industrial Development Authority,
MFHR, Refunding, VRDN
(Southwest Village Apartments Project)
4.32% (LOC; FNMA) 10,600,000 (a) 10,600,000
Pima County Industrial Development Authority,
SFMR, Refunding 4.10%, Series B-3, 9/1/2000 4,820,000 4,820,000
CALIFORNIA--6.7%
Calcasieu Parish Incorporated, IDB, Environmental Revenue,
VRDN (Citgo Petroleum Corp. Proj.)
4.60% (LOC; Banque Nationale de Paris) 11,200,000 (a) 11,200,000
California Higher Education Loan Authority,
Student Loan Revenue, Refunding:
(Senior Lien) 3.50%, Series A-1, 7/1/2000
(LOC; Student Loan Marketing Association 11,850,000 11,850,000
VRDN 5.25%, Series A
(LOC; National Westminster Bank) 8,000,000 (a) 8,000,000
California School Cash Reserves Program Authority
4%, Series A, 7/3/2000 (Insured; AMBAC) 15,000,000 15,011,444
CONNECTICUT--1.0%
Connecticut Special Assessment Unemployment
Compensation Advance Fund, Revenue
(Connecticut Unemployment) 3.38%, Series C,
7/1/2000 (Insured; FGIC and Liquidity Facility; FGIC) 7,000,000 7,000,000
6
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
DELAWARE--.9%
Delaware Economic Development Authority,
Solid Waste Disposal and
Sewage Facility Revenue, VRDN (CIBA Specialty)
4.45%, Series A (Corp. Guaranty;
CIBA Specialty Chemicals) 6,000,000 (a) 6,000,000
DISTRICT OF COLUMBIA--3.8%
District of Columbia Housing Finance Agency, Mortgage
Revenue, Refunding 4.35%, Series B, 3/21/2001 10,000,000 10,000,000
District of Columbia, VRDN:
Refunding:
4.45%, Series A-1 (LOC; Societe Generale) 1,700,000 (a) 1,700,000
4.45%, Series A-4 (LOC; Societe Generale) 1,700,000 (a) 1,700,000
Revenue (George Washington University)
4.40%, Series B (Insured; MBIA and LOC;
Bank of America) 12,700,000 (a) 12,700,000
FLORIDA--3.9%
Florida Housing Financing Agency (Wood Forest II Project)
4.15%, Series BBB, 12/1/2000
(LOC; Continental Causality) 6,000,000 6,000,000
Highlands County Health Facility Authority, Revenue,
VRDN (Adventist Health System/Sunbelt Inc.)
4.35%, Series A (Liquidity Facility; FNB Chicago
and LOC; Capital Markets Assurance) 7,000,000 (a) 7,000,000
Lee County Housing Finance Authority, MFHR, VRDN
(Forestwood Apartment Project)
4.10%, Series A (LOC; FNMA) 9,485,000 (a) 9,485,000
Miami-Dade County Housing Finance Authority,
Home Ownership Mortgage Revenue
4.80%, Series A-2, 4/16/2001
(LOC; American Insurance Group Funding Inc.) 4,280,000 4,280,000
GEORGIA--2.2%
Cobb County Housing Authority, MFHR, Refunding, VRDN
(Six Flags Association) 4.30% (LOC; FHLM) 5,490,000 (a) 5,490,000
Columbia County Development Authority, Revenue, VRDN
(Augusta Preparatory Project) 4.35%
(LOC; Wachovia Bank of North Carolina) 4,500,000 (a) 4,500,000
The Fund 7
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
GEORGIA (CONTINUED)
Savannah Economic Development Authority,Exempt Facility
VRDN (Home Depot Project) Revenue,
4.40%, Series B (LOC; Sun Trust Bank) 5,000,000 (a) 5,000,000
ILLINOIS--6.5%
Glendale Heights, Multi-Family Revenue, Refunding, VRDN
(Glendale Lakes Project) 4.32% (LOC; FHLM) 4,845,000 (a) 4,845,000
Illinois Development Finance Authority, PCR, VRDN
(Illinois Power Co.)
4.50%, Series B (LOC; Morgan Guaranty Trust Co.) 10,000,000 (a) 10,000,000
Illinois Educational Facilities Authority, Revenue, VRDN
(Art Institute of Chicago)
4.30%, Series A (LOC; Harris Trust and Savings Bank) 10,800,000 (a) 10,800,000
Illinois Health Facilities Authority, Revenue, VRDN:
(Rehab Institute of Chicago Project)
4.40% (LOC; Bank of America) 13,500,000 (a) 13,500,000
(Resurrection Health)
4.15%, Series B (Insured; FSA and LOC;
La Salle National Bank) 5,600,000 (a) 5,600,000
INDIANA--.5%
Indiana Bond Bank Advanced Funding Program
4.75%, Series A-2, 1/18/2001 (LOC; Bank of America) 3,500,000 3,512,334
IOWA--1.4%
Iowa Finance Authority, SWDR, VRDN
(Cedar River Paper Co. Project)
4.65% (LOC; Union Bank of Switzerland) 2,900,000 (a) 2,900,000
Louisa County, PCR, Refunding, VRDN
(Midwest Power System Inc. Project) 4.35% 7,000,000 (a) 7,000,000
KANSAS--1.7%
Butler County, Solid Waste Disposal and
Cogeneration Revenue, VRDN
(Texaco Refining and Marketing)
4.60%, Series B ( Corp. Guaranty; Texaco Inc.) 5,500,000 (a) 5,500,000
Wichita, Renewal and Improvement Temporary Notes, RAN
4.50%, 8/24/2000 6,000,000 6,007,311
KENTUCKY--2.0%
Kentucky Association of Counties, Advance Revenue/
Cash Flow Borrowing Program, COP, TRAN
4%, 6/30/2000 7,500,000 7,503,158
Ohio County, PCR, VRDN (Big Rivers Electric Corp. Project)
4.15% (Insured; AMBAC and Liquidity Facility;
Credit Suisse) 5,900,000 (a) 5,900,000
8
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA--1.3%
Ascension Parish, Revenue, VRDN (BASF Corp. Project)
4.65% (Corp. Guaranty; BASF Corp.) 4,000,000 (a) 4,000,000
West Baton Rouge Parish
Industrial District Number 3, Revenue, VRDN
(Dow Chemical Co. Project)
4.60% (Corp. Guaranty; Dow Chemical Co.) 4,900,000 (a) 4,900,000
MAINE--1.5%
Maine Health and Higher Educational Facilities
Authority, Revenue, Refunding, VRDN
4.15%, Series A (Insured; AMBAC and
Liquidity Facility; Kreditbank) 10,000,000 (a) 10,000,000
MARYLAND--.7%
Baltimore County Authority, Revenue, VRDN
(Golf System) 4.30% (LOC; Allied Irish Banks) 5,050,000 (a) 5,050,000
MASSACHUSETTS--2.3%
Acton, BAN 4.45%, 3/5/2001 7,000,000 7,016,301
Hampden and Wilbraham Regional School District,
BAN 4.75%, 4/13/2001 3,760,000 3,768,389
Millbury, BAN 4.50%, 4/19/2001 5,000,000 5,006,749
MINNESOTA--2.1%
Becker, PCR, CP (Northern State Power Co.)
4.15%, Series A, 8/11/2000 (Corp. Guaranty;
Northern State Power Corp.) 9,000,000 9,000,000
Minnesota Housing Finance Agency,
Single Family Mortgage
3.20%, Series F, 6/1/2000 5,700,000 5,700,000
MISSOURI--2.8%
Missouri Health and Educational Facilities Authority,
Health Facilities Revenue, VRDN
(Deaconess Long Term Care) 4.40%, Series A
(LOC; Bank One Corp.) 9,205,000 (a) 9,205,000
Saint Charles County Industrial Development Authority,
Industrial Revenue,
Refunding, VRDN (Country Club Apartments Project)
4.32% (LOC; LaSalle National Bank) 10,000,000 (a) 10,000,000
NEBRASKA--.3%
Nebraska Public Power District,
Power Supply System Revenue,
Refunding, Prerefunded 5.20%, 1/1/2001 1,900,000 1,911,811
The Fund 9
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
NEVADA--1.0%
Nevada Housing Division, Multi-Unit Housing,
VRDN (Silverado)
4.45%, Series A (LOC; FNMA) 6,710,000 (a) 6,710,000
NEW HAMPSHIRE--1.0%
New Hampshire Business Finance Authority, PCR, CP
(New England Power Co. Project) 4.65%,
Series A, 9/11/2000
(Corp. Guaranty; New England Power Co.) 5,000,000 5,000,000
New Hampshire Housing Finance Authority, SFMR
3.95%, Series C, 12/1/2000 2,000,000 2,000,000
NEW MEXICO--1.5%
State of New Mexico, TRAN 4%, 6/30/2000 10,000,000 10,005,903
NEW YORK--2.3%
Metropolitan Transportation Authority,
Transit Facility Revenue, CP
4.05%, 9/1/2000 (LOC; ABN-Amro Bank) 9,000,000 9,000,000
Suffolk County, TAN 4.50%, Series 1, 8/10/2000
(LOC: Credit Local de France, Landesbank Hessen
and Westdeutschebank) 7,000,000 7,006,512
NORTH CAROLINA--.4%
Durham County Industrial Facilities and Pollution Control
Financing Authority, Development Revenue, VRDN
(Cormetech Inc. Project) 4.45% (LOC;
Wachovia Bank of North Carolina) 3,000,000 (a) 3,000,000
OHIO--3.6%
Hamilton County, Hospital Facilities Revenue, VRDN
(Episcopal Retirement Project Homes)
4.40%, Series A (LOC; Fifth Third Bank) 5,000,000 (a) 5,000,000
State of Ohio, Higher Educational Facility Revenue, CP
(Case Western Reserve University)
4.05%, 7/18/2000 (LOC; Bank One Corp.) 5,000,000 5,000,000
Ohio Housing Finance Agency,
Mortgage Revenue (Residential)
4.15%, Series C, 9/1/2000 5,000,000 5,000,000
Summit County, BAN 3.80%, Series A, 6/1/2000 10,000,000 10,000,000
PENNSYLVANIA--3.4%
Berks County Industrial Development Authority,
Revenue, VRDN (EJB Paving and Materials)
4.50% (LOC; First Union National Bank) 2,000,000 (a) 2,000,000
10
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
Emmaus General Authority, Revenue, VRDN
4.15% (Insured; FSA and LOC;
First Union National Bank) 11,100,000 (a) 11,100,000
Lancaster County Hospital Authority,
Health Center Revenue, VRDN (Masonic Homes)
4.15% (Insured; AMBAC and
Liquidity Facility; PNC Bank) 10,000,000 (a) 10,000,000
RHODE ISLAND--1.7%
Rhode Island Industrial Facilities Corporation, IDR, VRDN
(Cololey Inc. Project):
4.45% (LOC; Royal Bank of Scotland) 2,750,000 (a) 2,750,000
5.20% (LOC; Royal Bank of Scotland) 550,000 (a) 550,000
Rhode Island Student Loan Authority,
Student Loan Revenue, VRDN
4.20%, Series 1 (LOC;
State Street Bank and Trust Co.) 8,000,000 (a) 8,000,000
SOUTH CAROLINA--.7%
South Carolina Jobs Economic Development Authority,
EDR, VRDN (Wellman Inc. Project) 4.55
(LOC; Wachovia Bank and Trust Co.) 4,900,000 (a) 4,900,000
TENNESSEE--8.4%
Metropolitan Government Nashville and
Davidson County Health and
Educational Facilities Board, Revenue, VRDN
(Vanderbilt University) 4.70%, Series A 9,000,000 (a) 9,000,000
Sevier County Public Building Authority, VRDN
(Local Government Public Improvement):
4.30%, Series A-1 (Insured; AMBAC) 6,485,000 (a) 6,485,000
4.30%, Series A-2 (Insured; AMBAC) 3,695,000 (a) 3,695,000
4.30%, Series III-C-2 (Insured; AMBAC and
Liquidity Facility; Landesbank Hessen) 14,425,000 (a) 14,425,000
4.45%, Series IV-A-4 (Insured; FSA and
Liquidity Facility; Morgan Guaranty Trust Co.) 6,335,000 (a) 6,335,000
5.05%, Series III-C-2 (Insured; AMBAC and
Liquidity Facility; Landesbank Hessen) 335,000 (a) 335,000
5.05%, Series III-C-3 (Insured; AMBAC and
Liquidity Facility; Landesbank Hessen) 240,000 (a) 240,000
The Fund 11
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (CONTINUED)
Shelby County Health Educational and
Housing Facility Board, HR, CP
(Baptist Memorial Hospital):
4.65%, 11/17/2000 (LOC; Bank of America) 4,000,000 4,000,000
4.60%, 11/22/2000 (LOC; Bank of America) 13,000,000 13,000,000
TEXAS--17.7%
Brazos River Authority, PCR, VRDN
(Texas Utilities Electric Co.):
4.55%, Series A (LOC; Morgan Guaranty Trust Co.) 13,500,000 (a) 13,500,000
Refunding:
4.25%, Series C (Liquidity Facility;
The Bank of New York) 20,000,000 (a) 20,000,000
4.55%, Series C (Insured; AMBAC and
Liquidity Facility; The Bank of New York) 13,700,000 (a) 13,700,000
4.65%, Series A (Insured; MBIA and
Liquidity Facility; The Bank of New York) 4,300,000 (a) 4,300,000
Dallas County, Permanent Improvement
3.30%, Series C, 6/15/2000 (Liquidity Facility;
Union Bank of Switzerland) 6,500,000 6,500,000
Gulf Coast Industrial Development Authority, SWDR, VRDN
(Citgo Petroleum Corp. Project):
4.60% (LOC; Bank of America) 19,100,000 (a) 19,100,000
4.60% (LOC; Wachovia Bank of Georgia) 9,400,000 (a) 9,400,000
Houston, Water and Sewer System Revenue, CP
4.55%, Series A, 10/12/2000 10,000,000 10,000,000
Panhandle-Plains Higher Education Authority,
Student Loan Revenue, Refunding, VRDN
4.15%, Series A (LOC; Student Loan
Marketing Association) 12,700,000 (a) 12,700,000
State of Texas:
Refunding 6%, Series B, 10/1/2000 1,000,000 1,005,733
TRAN 4.50%, Series A, 8/31/2000 11,000,000 11,020,039
UTAH--2.0%
Intermountain Power Agency,
Power Supply Revenue, CP:
4%, Series B-2, 6/15/2000 (Liquidity Facility:
Bank of America and Bank of Nova Scotia) 9,000,000 9,000,000
4.50%, Series B-5, 7/25/2000 (Liquidity Facility:
Bank of America and Bank of Nova Scotia) 5,000,000 5,000,000
12
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA--3.8%
Henrico County Economic Development Authority, Revenue,
Refunding, VRDN (White Oak Limited Project)
4.15% (LOC; Citibank) 10,538,000 (a) 10,538,000
Hopewell Industrial Development Authority, Revenue, VRDN
(Hadson Power 13) 4.55%, Series A (LOC; Credit Suisse) 3,200,000 (a) 3,200,000
Richmond Industrial Development Authority, Revenue, VRDN
(Cogentrix of Richmond Project)
4.60%, Series A (LOC; Banque Paribas) 10,000,000 (a) 10,000,000
Southampton County Industrial Development Authority,
Revenue, VRDN (Hadson Power 11) 4.55%,
Series A (LOC; Credit Suisse) 2,000,000 (a) 2,000,000
WEST VIRGINIA--.9%
Marion County, Community Solid Waste Disposal Facility
Revenue, VRDN (Granttown Project)
4.10%, Series B (LOC; National Westminster Bank) 3,700,000 (a) 3,700,000
Pendleton County, IDR, VRDN
(Greer Steel Project) 4.50% (LOC; PNC Bank) 2,315,000 (a) 2,315,000
WISCONSON--.7%
Green Bay Area Public School District,
BAN 4.90%, 4/13/2001 5,000,000 5,001,142
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $680,654,826) 99.2% 680,654,826
CASH AND RECEIVABLES (NET) .8% 5,760,711
NET ASSETS 100.0% 686,415,537
The Fund 13
</TABLE>
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond IDB Industrial Development Board
Assurance Corporation
BAN Bond Anticipation Notes IDR Industrial Development Revenue
COP Certificate of Participation LOC Letter of Credit
CP Commercial Paper MBIA Municipal Bond Investors
Assurance Insurance
Corporation
EDR Economic Development Revenue MFHR Multi-Family Housing Revenue
EIR Environment Improvement
Revenue PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance
Company RAN Revenue Anticipation Notes
FHLM Federal Home Loan Mortgage SFMR Single Family Mortgage Revenue
FNMA Federal National Mortgage
Association SWDR Solid Waste Disposal Revenue
FSA Financial Security Assurance TAN Tax Anticipation Notes
HR Hospital Revenue TRAN Tax and Revenue Anticipation
Notes
VRDN Variable Rate Demand Notes
</TABLE>
Summary of Combined Ratings (Unaudited)
<TABLE>
<CAPTION>
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 90.8
AAA/AA(b) Aaa/Aa(b) AAA/AA(b) 5.5
Not Rated(c) Not Rated(c) Not Rated(c) 3.7
100.0
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(B) NOTES WHICH ARE NOT F, MIG OR SP RATED ARE REPRESENTED BY BOND RATINGS OF
THE ISSUERS.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S OR STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
RATED SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 680,654,826 680,654,826
Cash 362,637
Interest receivable 5,817,553
Prepaid expenses 59,530
686,894,546
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 425,006
Accrued expenses 54,003
479,009
--------------------------------------------------------------------------------
NET ASSETS ($) 686,415,537
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 686,427,562
Accumulated net realized gain (loss) on investments (12,025)
--------------------------------------------------------------------------------
NET ASSETS ($) 686,415,537
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class X
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Assets ($) 272,466,315 413,652,272 296,950
Shares Outstanding 272,757,994 413,653,893 296,950
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 1.00 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 15
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 12,454,996
EXPENSES:
Management fee--Note 2(a) 1,610,934
Shareholder servicing costs--Note 2(c) 667,834
Distribution fees (Class B and Class X)--Note 2(b) 398,296
Professional fees 45,867
Registration fees 37,301
Custodian fees 28,937
Prospectus and shareholders' reports 27,383
Directors' fees and expenses--Note 2(d) 16,442
Miscellaneous 14,431
TOTAL EXPENSES 2,847,425
Less--reduction in management fee due to
undertaking--Note 2(a) (160,095)
NET EXPENSES 2,687,330
INVESTMENT INCOME--NET, REPRESENTING NET INCREASE
IN NET ASSETS RESULTING FROM OPERATIONS 9,767,666
SEE NOTES TO FINANCIAL STATEMENTS.
16
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
May 31, 2000 Year Ended
(Unaudited) November 30, 1999(a)
-------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 9,767,666 15,935,283
Net realized gain (loss) on investments -- 7,897
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 9,767,666 15,943,180
-------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (4,036,676) (7,034,104)
Class B shares (5,729,017) (8,901,177)
Class X shares (1,973) (2)
TOTAL DIVIDENDS (9,767,666) (15,935,283)
-------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares 712,893,121 1,238,026,201
Class B shares 947,716,251 1,689,638,089
Class X shares 295,000 1,000
Dividends reinvested:
Class A shares 3,836,393 6,758,293
Class B shares 5,583,976 8,719,782
Class X shares 1,950 --
Cost of shares redeemed:
Class A shares (730,112,075) (1,239,336,213)
Class B shares (915,752,137) (1,699,894,974)
Class X shares (1,000) --
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 24,461,479 3,912,178
TOTAL INCREASE (DECREASE) IN NET ASSETS 24,461,479 3,920,075
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 661,954,058 658,033,983
END OF PERIOD 686,415,537 661,954,058
(A) FROM JUNE 1, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1999
FOR CLASS X SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 17
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>
<CAPTION>
Six Months Ended
May 31, 2000 Year Ended November 30,
----------------------------------------------------------------
CLASS A SHARES (Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .016 .027 .030 .031 .029 .034
Distributions:
Dividends from
investment income--net (.016) (.027) (.030) (.031) (.029) (.034)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 3.29(a) 2.71 3.02 3.14 2.97 3.41
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .60(a) .58 .60 .62 .66 .66
Ratio of net investment income
to average net assets 3.27(a) 2.68 2.98 3.09 2.93 3.35
------------------------------------------------------------------------------------------------------------------------------------
Net Assets,
end of period ($ X 1,000) 272,466 285,849 280,398 273,058 256,862 294,379
(A) ANNUALIZED
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
18
<TABLE>
<CAPTION>
Six Months Ended
May 31, 2000 Year Ended November 30,
----------------------------------------------------------------
CLASS B SHARES (Unaudited) 1999 1998 1997 1996 1995(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .014 .023 .026 .028 .027 .020
Distributions:
Dividends from
investment income--net (.014) (.023) (.026) (.028) (.027) (.020)
Net asset value,
end of period 1.00 1.00 1.00 1.00 1.00 1.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 2.91(b) 2.31 2.64 2.86 2.70 3.01(b)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .98(b) .98 .96 .95 .85 1.10(b)
Ratio of net investment income
to average net assets 2.87(b) 2.29 2.59 2.87 2.65 2.83
Decrease reflected in
above expense ratios
due to undertakings by
The Dreyfus Corporation .08(b) .07 .09 .16 .29 .09(b)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 413,652 376,104 377,636 263,008 17,491 3,024
(A) FROM MARCH 31, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1995.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 19
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
May 31, 2000 Year Ended
CLASS X SHARES (Unaudited) November 30,
1999(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00
Investment Operations:
Investment income--net .014 .012
Distributions:
Dividends from investment income--net (.014) (.012)
Net asset value, end of period 1.00 1.00
--------------------------------------------------------------------------------
TOTAL RETURN (%) 2.89(b) 2.43(b)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.05(b) 1.05(b)
Ratio of net investment income
to average net assets 3.02(b) 2.22(b)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .20(b) .18(b)
-------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 297 1
(A) FROM JUNE 1, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1999.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
20
NOTE 1--Significant Accounting Policies:
General Municipal Money Market Fund (the "fund") is a separate diversified
series of General Municipal 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 maximize current income exempt from Federal income tax to the
extent 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 Mellon Financial Corporation, 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 16.5 billion shares of $.001 par value Common Stock. The
fund is currently authorized to issue three classes of shares: Class A (15
billion shares authorized) , Class B (1 billion shares authorized) and Class X
shares (500 million shares authorized). Class A shares, Class B shares and Class
X shares are identical except for the services offered to and the expenses borne
by each class and certain voting rights. Class B and Class X 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 a pro rata basis.
The Fund 21
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. Interest income, adjusted for amortization of
premiums and original issue discounts on investments, is earned from settlement
date and recognized on the accrual basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Cost of investments
represents amortized cost. Under the terms of the custody agreement, the fund
received net earnings credits of $32,994 during the period ended May 31, 2000
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
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
"Code"). To the extent that net realized capital gain can be offset by capital
loss carryovers, if it is the policy of the fund not to distribute such gain.
22
(d) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $9,000 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, the
carryover expires in fiscal 2006.
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 average value of the fund's 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 .98 of 1% for Class B shares, of the value of their average daily net
assets. The reduction in management fee, pursuant to the undertakings amounted
to $159,962 for Class B and $133 for Class X during the period ended May 31,
2000.
The Fund 23
(b) Under the Distribution Plan (the "Plan") with respect to Class B ("Class B
Distribution Plan") and Class X ("Class X Distribution Plan") 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 Plan. In addition,
Class B and Class X shares reimburse the distributor for payments made to third
parties for distributing their shares at an annual rate of .20 of 1% and .25 of
1% , respectively, of the value of their average daily net assets. During the
period ended May 31, 2000, Class B and Class X shares were charged $398,133 and
$163, respectively, pursuant to the Plan, of which $196,301 and $135, for Class
B and Class X shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan" ), Class A shares reimburse DSC an amount not to
exceed an annual rate of .25 of 1% of the value of the 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. During the
period ended May 31, 2000, Class A shares were charged $35,328 pursuant to the
Class A Shareholder Services Plan.
Under the Shareholder Services Plan with respect to Class B ("Class B
Shareholder Services Plan") and Class X ("Class X Shareholder Services Plan")
Class B and Class X shares pay the distributor at an annual rate of .25 of 1% of
the value of their average daily net assets for servicing shareholder accounts.
The services provided may include personal services relating to shareholder
accounts, such as answering
24
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
their services. The distributor determines the amounts to be paid to Service
Agents. During the period ended May 31, 2000, $597,199 and $163, were charged
pursuant to the Class B and Class X Shareholder Services Plans, respectively, of
which $294,451 and $135 for Class B and Class X shares, 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 $17,222 pursuant to the transfer agency
agreement.
(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 Company 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 Company's annual retainer fee and per meeting fee paid at the time
the Board member achieved emeritus status.
The Fund 25
For More Information
General Municipal 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 918SA005
General Minnesota
Municipal 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
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
15 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
General Minnesota
Municipal Money Market Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for General Minnesota Municipal
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, Joseph Irace.
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 key short-term interest rates three more 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 adversely affected long-term municipal bonds, they
positively influenced tax-exempt money market yields.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in General Minnesota Municipal 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
Joseph Irace, Portfolio Manager
How did General Minnesota Municipal Money Market Fund perform during the period
For the six-month period ended May 31, 2000, the fund's Class A shares produced
an annualized yield of 3.36% and its Class B shares produced an annualized yield
of 3.19%. Taking into account the effects of compounding, the fund's Class A and
B shares provided annualized effective yields of 3.41% and 3.24%, respectively,
for the same period.(1)
We attribute the fund's performance to higher short-term interest rates
implemented by the Federal Reserve Board (the "Fed"), which helped enhance
tax-exempt money market yields.
What is the fund's investment approach?
The fund seeks to maximize current income exempt from federal and Minnesota
state personal income taxes to the extent consistent with the preservation of
capital and the maintenance of liquidity.
In so doing, we employ two primary strategies. First, we attempt to add value by
constructing a diverse portfolio of high quality, tax-exempt money market
instruments from Minnesota issuers. Second, we actively manage the portfolio's
average maturity in anticipation of supply-and-demand changes in the short-term
municipal marketplace.
For example, if we expect an increase in short-term supply, we may decrease the
average maturity of the portfolio, which could enable us to take advantage of
opportunities when short-term supply increases. Generally, yields tend to rise
when there is an increase in new-issue supply competing for investor interest.
New securities are generally issued with maturities in the one-year range, which
in turn may lengthen the portfolio's average maturity. If we anticipate limited
new-issue supply, we may then look to extend the portfolio's average maturity to
maintain current yields for as long as we believe practical. At
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
other times, we try to maintain an average maturity that reflects our view of
short-term interest-rate trends and future supply-and-demand considerations.
What other factors influenced the fund's performance?
The fund was positively influenced over the past six months by robust U.S.
economic growth, rising interest rates and a low supply of newly issued
securities.
By the time the reporting period began on December 1, 1999, it had become
apparent that the pace of economic growth in the United States was
unsustainable. Consumer confidence remained near a 30-year high, oil prices
bounced back from the previous year's lows and employment remained strong, with
hourly wages rising. These economic forces raised concerns among fixed-income
investors that long-dormant inflationary pressures might reemerge. In response,
the Fed raised short-term interest rates three times. When combined with the
three interest-rate hikes implemented before the reporting period began, the Fed
has raised interest rates a total of 1.75 percentage points since last summer.
However, tax-exempt money market yields generally rose less when compared to
taxable yields over the past six months. This was due to the fact that Minnesota
and its municipalities enjoyed higher tax revenues during the reporting period.
These higher revenues reduced their need to borrow and resulted in a lower
supply of securities.
What is the fund's current strategy?
Our strategy continues to involve active management of the portfolio's weighted
average maturity and asset mix according to our interest-rate and
supply-and-demand expectations. Although the interest-rate outlook is currently
uncertain, June tends to be a period of seasonal issuance for municipal bonds.
These technical market influences often hold greater sway over the tax-exempt
money markets than changes in the Fed's monetary policy.
4
Accordingly, we have recently adjusted the portfolio's average weighted maturity
toward a point that is longer than other Minnesota tax-exempt money market
funds. This maturity management strategy was designed to help us lock in then
current yields.
In April, we took advantage of the temporary high yields caused primarily by
tax-season selling to create a laddered portfolio of municipal notes,
emphasizing those with relatively small issue sizes. This laddered portfolio
contains securities that mature every month until the end of 2000, a strategy
designed to maintain prevailing yields if interest rates fall, while making some
cash available for reinvestment in case interest rates rise further.
Our asset mix currently also emphasizes Variable Rate Demand Notes ("VRDNs")
because of the competitively high yields they offer. VRDNs generally feature
adjustable yields, short maturities and afford the portfolio a high degree of
liquidity and credit quality. Of course, portfolio composition is subject to
change at any time.
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. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES FOR
NON-MINNESOTA RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL
ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. 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 $1.00
PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. YIELDS
PROVIDED FOR THE FUND'S CLASS A AND CLASS B SHARES REFLECT THE ABSORPTION
OF FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN UNDERTAKING IN
EFFECT THAT MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME. HAD THESE
EXPENSES NOT BEEN ABSORBED, THE FUND'S CLASS A AND CLASS B SHARES WOULD
HAVE BEEN LOWER. WITHOUT THE FUND'S EXPENSE ABSORPTION, THE FUND'S CLASS A
SHARES WOULD HAVE PRODUCED AN ANNUALIZED NET YIELD OF 3.28% AND AN
ANNUALIZED EFFECTIVE NET YIELD OF 3.33%, AND THE FUND'S CLASS B SHARES
WOULD HAVE PRODUCED AN ANNUALIZED NET YIELD OF 2.81% AND AN ANNUALIZED
EFFECTIVE NET YIELD OF 2.85%.
The Fund 5
STATEMENT OF INVESTMENTS
May 31, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
Principal
TAX EXEMPT INVESTMENTS--94.9% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Beltrami County, Environmental Control Revenue, VRDN
(Northwood Panelboard Co. Project)
4.55% (LOC; Union Bank of Switzerland) 1,400,000 (a) 1,400,000
Cloquet, Industrial Facilities Revenue, VRDN
(Potlatch Corp. Project)
4.35%, Series C (LOC; Wachovia Bank) 1,700,000 (a) 1,700,000
Cohasset, Revenue, Refunding, VRDN
(Minnesota Power and Light Co. Project)
4.40%, Series B (LOC; ABN-Amro Bank) 565,000 (a) 565,000
Cottage Grove, Environmental Control Revenue, VRDN
(Minnesota Mining and Manufacturing)
4.64% (Corp. Guaranty; Minnesota Mining and Manufacturing) 1,000,000 (a) 1,000,000
Dakota County Housing and Redevelopment Authority, SFMR
5.50%, Series A, 10/1/2000 (LOC; FNMA) 40,000 40,000
Duluth Economic Development Authority,
Health Care Facilities Revenue, Refunding,
VRDN (Miller Dwan Medical Center Project):
4.40% (LOC; Credit Locale de France) 1,100,000 (a) 1,100,000
5.30% (LOC; Credit Locale de France) 100,000 (a) 100,000
East Central Solid Waste Commission,
Solid Waste RRR, Refunding
4.20% , 6/1/2000 (Insured; FSA) 250,000 250,000
Hennepin County, GO Notes, Refunding
4.50%, Series A, 12/1/2000 100,000 100,117
Inver Grove Heights, GO Notes 4.40%, Series A, 2/1/2001 125,000 125,000
Mankato, Revenue, VRDN (Mankato Area Family YMCA Project)
4.55% (LOC; U.S. Bank of Minneapolis) 1,240,000 (a) 1,240,000
Maple Grove, GO Notes 4.20%, Series B, 12/21/2000 130,000 130,000
Mc Leod County, Capital Improvement, GO Notes
4.30%, Series A, 2/1/2001 175,000 175,000
Metropolitan Council, Minneapolis-St. Paul Metropolitan Area:
4.25%, Series B, 6/1/2000 300,000 300,000
GO, Refunding 5.75%, 12/1/2000 530,000 533,787
Minneapolis:
HR (Fairview Hospital and Health Care)
6.10%, Series B, 1/1/2001 (Insured; MBIA) 500,000 505,086
MFHR, VRDN:
(Hennipin) 4.45% (LOC; St. Pauls Companies, Inc.) 4,000,000 (a) 4,000,000
(Swinford) 4.45% (LOC; St. Pauls Companies, Inc.) 1,700,000 (a) 1,700,000
6
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
Minneapolis and St. Paul Housing and Redevelopment Authority,
Health Care Systems Revenue:
Prerefunding (Health One Obligation):
8%, 8/15/2000 200,000 205,625
8.11%, 8/15/2000 (Escrowed in; U.S. Securities) 4,000,000 4,103,400
Refunding:
(Healthspan) 4.40%, Series A, 11/15/2000
(Insured; AMBAC) 250,000 250,273
VRDN (Children's Health Care) 4.45%
(Insured; FSA and LOC; Norwest Bank) 1,500,000 (a) 1,500,000
Minnesota Housing Finance Agency, Rental Housing Revenue
4.50%, Series A, 2/1/2001 235,000 235,000
Minnesota Rural Water Finance Corporation (Public Projects)
4.25%, 9/1/2000 (LOC; CDC Funding Corp.) 4,175,000 4,176,232
Osseo Independent School District Number 279, GO Notes
4.75%, Series A, 2/1/2001 1,000,000 1,002,879
Rosemount Independent School District Number 196,
Revenue, Refunding 5.30%, Series C, 2/1/2001
(Insured; FGIC) 100,000 100,516
Saint Louis Park, HR Facilities (Methodist Hospital)
Prerefunding:
7.25%, Series C, 7/1/2000 (Escrowed in; U.S. Securities) 250,000 255,516
7.30%, Series C, 7/1/2000 (Escrowed in; U.S. Securities) 500,000 511,145
Saint Paul:
GO Notes 4.75%, Series B, 3/1/2001 400,000 401,301
Revenue, Refunding 5%, 12/1/2000 (Insured; AMBAC) 250,000 250,844
Saint Paul Port Authority, IDR, VRDN (Ideal Printers Inc.)
4.55%, Series A (Corp. Guaranty; Marshall and Isley Corp.) 1,140,000 (a) 1,140,000
Shoreview, Refunding, GO Notes 3.90%, Series D, 12/1/2000 260,000 259,837
Southern Municipal Power Agency,
Power Supply Systems Revenue, CP
(Power Supply System)
3.55%, 2/10/2000 (Liquidity Facility: ABN-Amro Bank,
Bank of Nova Scotia and Credit Agricole-Indosuez) 1,000,000 1,000,000
Stillwater, GO Notes 4.30%, Series A, 2/1/2001 170,000 170,000
Wadena, IDR, VRDN (Homecrest Industry Inc. Project)
4.55% (LOC; U.S. Bank of Minneapolis) 3,000,000 (a) 3,000,000
Winona Independent School District Number 861
3.80%, 9/30/2000 925,000 924,366
The Fund 7
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Principal
TAX EXEMPT INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
State of Minnesota:
GO Notes:
Various Purpose:
5.60%, 8/1/2000 340,000 341,544
6.60%, 8/1/2000 200,000 200,533
Refunding:
4.875%, 8/1/2000 350,000 350,408
5%, 4/1/2000 500,000 502,405
5.20%, 8/1/2000 550,000 550,899
Prerefunded, Infrastructure Development 7%, 8/1/2000 180,000 180,889
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $36,576,187) 94.9% 36,577,602
CASH AND RECEIVABLES (NET) 5.1% 1,945,874
NET ASSETS 100.0% 38,523,476
8
</TABLE>
Summary of Abbreviations
<TABLE>
<CAPTION>
<S> <C> <C> <C>
AMBAC American Municipal Bond LOC Letter of Credit
Assurance Corporation
CP Commercial Paper MBIA Municipal Bond Investors
Assurance Insurance
Corporation
FNMA Federal National Mortgage
Association MFHR Multi-Family Housing Revenue
FSA Financial Security Assurance RRR Resources Recovery Revenue
GO General Obligation SFMR Single Family Mortgage Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
IDR Industrial Development Revenue
</TABLE>
Summary of Combined Ratings (Unaudited)
<TABLE>
<CAPTION>
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 69.1
AAA/AA(b) Aaa/Aa(b) AAA/AA(b) 14.9
Not Rated(c) Not Rated(c) Not Rated(c) 16.0
100.0
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE-SUBJECT TO PERIODIC
CHANGE.
(B) NOTES WHICH ARE NOT F, MIG OR SP RATED ARE REPRESENTED BY BOND RATINGS OF
ISSUERS.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
RATED SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 9
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 36,576,187 36,577,602
Cash 263,459
Receivable for investment securities sold 1,300,927
Interest receivable 407,665
Prepaid expenses 19,893
38,569,546
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 26,312
Accrued expenses 19,758
46,070
--------------------------------------------------------------------------------
NET ASSETS ($) 38,523,476
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 38,521,903
Accumulated net realized gain (loss) on investments 158
Accumulated gross unrealized appreciation on investments 1,415
--------------------------------------------------------------------------------
NET ASSETS ($) 38,523,476
NET ASSET VALUE PER SHARE
Class A Class B
--------------------------------------------------------------------------------
Net Assets ($) 105,032 38,418,444
Shares Outstanding 105,028 38,416,875
--------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
10
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 846,718
EXPENSES:
Management fee--Note 2(a) 106,068
Shareholder servicing costs--Note 2(c) 63,555
Distribution fees (Class B)--Note 2(b) 42,321
Registration fees 11,760
Professional fees 11,529
Prospectus and shareholders' reports 7,205
Custodian fees 3,445
Directors' fees and expenses--Note 2(d) 1,199
Miscellaneous 3,747
TOTAL EXPENSES 250,829
Less--reduction in management fee
due to undertakings--Note 2(a) (81,073)
NET EXPENSES 169,756
INVESTMENT INCOME--NET 676,962
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B):
Net realized gain (loss) on investments 158
Net unrealized appreciation (depreciation) on investments 997
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,155
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 678,117
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 11
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
May 31, 2000 Year Ended
(Unaudited) November 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 676,962 829,916
Net realized gain (loss) on investments 158 --
Net unrealized appreciation (depreciation)
on investments 997 418
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 678,117 830,334
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (1,780) (5,752)
Class B shares (675,182) (824,164)
TOTAL DIVIDENDS (676,962) (829,916)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares -- 3,000
Class B shares 62,599,093 77,718,879
Dividends reinvested:
Class A shares 1,786 5,739
Class B shares 665,812 807,618
Cost of shares redeemed:
Class A shares (3,103) (916,522)
Class B shares (65,258,326) (66,275,896)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (1,994,738) 11,342,818
TOTAL INCREASE (DECREASE) IN NET ASSETS (1,993,583) 11,343,236
-------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 40,517,059 29,173,823
END OF PERIOD 38,523,476 40,517,059
SEE NOTES TO FINANCIAL STATEMENTS.
12
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>
<CAPTION>
Six Months Ended
May 31, 2000 Year Ended November 30,
CLASS A SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00
Investment Operations:
Investment income--net .017 .027 .014
Distributions:
Dividends from investment income--net (.017) (.027) (.014)
Net asset value, end of period 1.00 1.00 1.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 3.39(b) 2.68 2.81(b)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .65(b) .65 .65(b)
Ratio of net investment income
to average net assets 3.35(b) 2.73 2.80(b)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .08(b) .16 .76(b)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 105 106 1,014
(A) FROM JUNE 1, 1998 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1998.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 13
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Six Months Ended
May 31, 2000 Year Ended November
30,
------------------------
CLASS B SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00
Investment Operations:
Investment income--net .016 .025 .013
Distributions:
Dividends from investment income--net (.016) (.025) (.013)
Net asset value, end of period 1.00 1.00 1.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 3.21(b) 2.52 2.67(b)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .80(b) .80 .80(b)
Ratio of net investment income
to average net assets 3.19(b) 2.49 2.63(b)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .38(b) .48 .87(b)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 38,418 40,411 28,160
(A) FROM JUNE 1, 1998 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1998.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
14
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
General Minnesota Municipal Money Market Fund (the "fund") is a separate
non-diversified series of General Municipal 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 maximize current income exempt from Federal
and State of Minnesota income taxes to the extent 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.
At May 31, 2000, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held 105,018 Class A shares and 104,734 Class B shares.
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
4 billion shares of $.001 par value Common Stock. The fund is currently
authorized to issue two classes of shares: Class A (2 billion shares authorized)
and Class B (2 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 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
The Fund 15
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
charged to that fund's operations; expenses which are applicable to all series
are allocated among them on a 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. Interest income, adjusted for amortization of
premiums and original issue discounts on investments, is earned from settlement
date and recognized on the accrual basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Cost of investments
represents amortized cost. Under the terms of the custody agreement, the fund
received net earnings credits of $3,247 during the period ended May 31, 2000
based on available cash balances left on deposit. Income earned under this
arrangement is included in interest income.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally
16
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.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain 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 average value of the fund's 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 .65 of 1% for Class A and .80 of 1% for Class B shares of the value of
their average daily net assets. The expense reimbursement pursuant to the
undertaking amounted to $41 for Class A and $81,037 for Class B shares during
the period ended May 31, 2000.
The Fund 17
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(b) Under the Distribution Plan with respect to Class B ("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 their shares at an annual rate
of .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 $42,321 pursuant to the
Distribution Plan, of which $21,990 paid to DSC.
(c) Under the Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan"), Class A shares reimburse DSC an amount not to
exceed an annual rate of .25 of 1% of the value of the 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 Shareholder Services Plan with respect to Class B ("Class B
Shareholder Services Plan") Class B shares pay the distributor at an annual rate
of .25 of 1% of the value of the average daily net assets of Class B shares for
servicing shareholder accounts. 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 their services. The
distributor determines the amounts to be paid to Service Agents. During the
period ended May 31, 2000, Class B shares were charged $63,482 pursuant to the
Class B Shareholder Services Plan, of which $32,985 was paid to DSC.
18
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 $49 pursuant to the transfer agency
agreement.
(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 Company 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 Company's annual retainer fee and per meeting fee paid at the time
the Board member achieved emeritus status.
The Fund 19
NOTES
For More Information
General Minnesota Municipal 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 917SA005
