General
New York Municipal
Bond Fund, Inc.
ANNUAL REPORT October 31, 1999
(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
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
13 Statement of Assets and Liabilities
14 Statement of Operations
15 Statement of Changes in Net Assets
16 Financial Highlights
17 Notes to Financial Statements
22 Report of Independent Auditors
23 Important Tax Information
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
General
New York Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for General New York Municipal Bond
Fund, covering the 12-month period from November 1, 1998 through October 31,
1999. Inside, you' ll find valuable information about how the fund was managed
during the reporting period, including a discussion with the fund's portfolio
manager, Monica Wieboldt.
The past year has been mixed for municipal bond investors. Lower short-term
interest rates adopted by the Federal Reserve Board in the fall of 1998 helped
the U.S. economy withstand the effects of economic weakness in Japan, Asia and
Latin America. As interest rates declined, the prices of many municipal bonds
appreciated.
Soon after 1999 began, however, evidence emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might re-emerge caused the Federal Reserve Board to raise short-term interest
rates twice during the summer of 1999. Higher interest rates led to erosion of
municipal bond prices, especially toward the end of the reporting period.
In this environment, however, the yields of tax-exempt bonds have recently been
quite attractive compared to the after-tax yields of taxable bonds of comparable
maturity and credit quality. This is especially true for investors in the higher
federal income tax brackets.
We appreciate your confidence over the past year, and we look forward to your
continued participation in General New York Municipal Bond Fund.
Sincerely,
/s/Stephen E.Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 1999
2
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did General New York Municipal Bond Fund perform?
The portfolio produced a -4.16% total return over the 12-month period ended
October 31, 1999.(1) This compares to a -4.44% total return for the average of
the Lipper New York Municipal Debt Funds category,(2) for the same period.
We attribute our modest relative outperformance primarily to our security
selection strategy, which helped us enhance the portfolio's credit quality while
taking advantage of higher yields as they became available in a rising
interest-rate environment.
What is the fund's investment approach?
Our primary goal is to seek a high level of federal and New York tax-exempt
income from a diversified portfolio of longer term municipal bonds. A secondary
goal is to maximize total return, which includes both income and changes in
share price.
To achieve these objectives, we first attempt to add value by selecting the
tax-exempt bonds that we believe are most likely to provide attractive yields.
These bonds comprise the portfolio's long-term core position. We continually
endeavor to identify maturity ranges that will provide the most favorable
returns.
Second, we tactically manage the portfolio's average duration -- a measure of
sensitivity to changes in interest rates -- in anticipation of temporary
supply-and-demand changes. If we expect the supply of newly issued bonds to
increase, we may reduce the portfolio's average duration to make cash available
for the purchase of higher yielding securities. Conversely, if we expect demand
for municipal bonds to surge at a time when we anticipate little issuance, we
may increase the portfolio's average duration to maintain current yields for as
long as practical.
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the portfolio's performance?
When the reporting period began on November 1, 1998, investors were concerned
about the potentially adverse economic effects of the global currency and credit
crisis. In response, the Federal Reserve Board reduced short-term interest rates
last fall in an attempt to stimulate global economic growth. The Federal
Reserve' s strategy apparently was effective. Overseas economies halted their
deterioration early in 1999, and the growth of the U.S. economy was stronger
than most analysts expected. Municipal bond yields and prices stabilized in this
environment.
In the second and third quarters of 1999, however, strong economic growth in
both domestic and overseas markets raised concerns among fixed-income investors
that inflationary pressures might re-emerge. In response, the Federal Reserve
Board increased short-term interest rates twice during the summer of 1999 in an
attempt to forestall inflationary pressures. This change in monetary policy,
combined with differing supply-and-demand influences, caused municipal bonds to
underperform the taxable market. As a result, the yields on municipal bonds, and
in particular New York issues, are very attractive on an after-tax basis when
compared to their taxable counterparts.
New York' s economy has also remained strong, reducing some issuers' need to
borrow in the municipal bond marketplace. What's more, while demand for New York
municipal bonds has remained strong from individuals seeking to manage their
income tax liabilities, participation from institutional investors such as
insurance companies has slowed. As a result, prices of New York municipal bonds
are trading at national levels, and currently offer attractive relative values
compared to historical norms.
What is the portfolio's current strategy?
During most of this period of rising rates, we have endeavored to maintain a
neutral duration stance. However, we believe there is value at current levels,
and therefore some duration extension is appropriate. Such an environment also
provides the opportunity to reevaluate our hold-
4
ings from a credit viewpoint. As often happens during down cycles, opportunities
to trade into better credits often present themselves.
In addition, we took advantage of opportunities to purchase bonds that, in our
opinion, were punished more severely than circumstances warranted during the
second half of the reporting period. Some bonds selling at a discount to their
face values were particularly attractively priced, providing the potential to
capture capital appreciation and maintain the fund's income stream if interest
rates decline from prevailing levels.
We have maintained a cash reserve to take advantage of new opportunities if, as
we expect, year-end and Y2K-related concerns produce attractive values in the
municipal bond market.
November 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES FOR NON-NEW YORK RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL
ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE
FULLY TAXABLE.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund 5
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in General New York
Municipal Bond Fund, Inc. and the Lehman Brothers Municipal Bond Index
- --------------------------------------------------------------------------------
<TABLE>
Average Annual Total Returns AS OF 10/31/99
1 Year 5 Years 10 Years
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Fund (4.16)% 5.89% 6.77%
</TABLE>
((+)) SOURCE: BLOOMBERG L.P.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN THE GENERAL NEW YORK
MUNICIPAL BOND FUND, INC. ON 10/31/89 TO A $10,000 INVESTMENT MADE IN THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ARE REINVESTED.
THE FUND INVESTS PRIMARILY IN NEW YORK MUNICIPAL SECURITIES AND ITS PERFORMANCE
SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT FEES AND EXPENSES. THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX IS NOT LIMITED TO INVESTMENTS PRINCIPALLY IN NEW
YORK MUNICIPAL OBLIGATIONS AND DOES NOT TAKE INTO ACCOUNT FEES AND EXPENSES. THE
LEHMAN BROTHERS MUNICIPAL BOND INDEX, UNLIKE THE FUND, IS AN UNMANAGED TOTAL
RETURN PERFORMANCE BENCHMARK FOR THE LONG-TERM, INVESTMENT-GRADE, GEOGRAPHICALLY
UNRESTRICTED TAX-EXEMPT BOND MARKET, CALCULATED BY USING MUNICIPAL BONDS
SELECTED TO BE REPRESENTATIVE OF THE MUNICIPAL MARKET OVERALL. THESE FACTORS CAN
CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR UNDERPERFORMING THE FUND.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
STATEMENT OF INVESTMENTS
<TABLE>
October 31, 1999
Principal
LONG-TERM MUNICIPAL INVESTMENTS--96.6% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NEW YORK--93.4%
Albany Industrial Development Agency:
Civic Facility Revenue (Sage Colleges Project)
5.30%, 4/1/2029 2,265,000 1,948,534
IDR (Hampton Plaza Project) 6.25%, 3/15/2018 5,600,000 5,488,784
LR:
(New York State Assembly Building Project)
7.75%, 1/1/2010 3,320,000 3,418,471
(New York State Department of Health Building Project)
7.25%, 10/1/2010 1,720,000 1,819,640
Board of Cooperative Educational Services, COP
(Greenport Vocational Facility Project) 7.875%, 10/1/2000 311,376 316,894
Cohoes Industrial Development Agency, IDR (Norlite Corp.
Project) 6.75%, 5/1/2009
(LOC; Dresdner Bank, Prerefunded 5/1/2002) 2,400,000 (a) 2,564,520
Development Authority of the North Country,
Solid Waste Management System Revenue
6%, 5/15/2015 (Insured; FSA) 2,260,000 2,366,130
Franklin County Solid Waste Management Authority, Solid
Waste System Revenue 6.125%, 6/1/2009 1,350,000 1,343,155
Huntington Housing Authority, Senior Housing Facility
Revenue (Gurwin Jewish Senior Residences)
6%, 5/1/2029 1,370,000 1,263,784
Islip Resource Recovery Agency, RRR
6.125%, 7/1/2013 (Insured; AMBAC) 1,425,000 1,464,045
Metropolitan Transportation Authority,
Transportation Facilities Revenue:
6.379%, 7/1/2014 (Insured; FSA) 2,000,000 (b) 1,715,560
6%, 7/1/2016 (Insured; FSA) 5,000,000 5,055,050
6.50%, 7/1/2018 (Insured; FGIC)
(Prerefunded 7/1/2002) 4,000,000 (a) 4,285,240
4.75%, 7/1/2026 (Insured: FGIC) 2,000,000 1,640,680
Service Contract 5.375%, 7/1/2021 3,000,000 2,682,210
Nassau County Health Care Corp., Health System Revenue
5.75%, 8/1/2029 (Guaranteed; County of Nassau) 3,000,000 2,878,170
Nassau County Industrial Development Agency,
Civic Facility Revenue (Hofstra University Project)
4.75%, 7/1/2028 (Insured; MBIA) 2,000,000 1,630,460
New York City:
6%, 8/1/2007 (Insured; FGIC) 2,000,000 2,122,480
6.375%, 8/15/2012 2,670,000 2,809,507
5.875%, 8/15/2013 3,300,000 3,322,176
6%, 8/1/2016 4,000,000 3,997,480
5.875%, 8/15/2016 2,715,000 2,677,696
The Fund 7
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York City (continued):
6%, 8/1/2017 2,000,000 1,994,380
6.125%, 8/1/2025 1,150,000 1,151,541
New York City Health and Hospitals Corp., Health Systems
Revenue 5.25%, 2/15/2017 1,700,000 1,511,776
New York City Industrial Development Agency:
Civic Facility Revenue:
(College of Aeronautics Project) 5.50%, 5/1/2028 1,600,000 1,432,464
(YMCA of Greater New York Project) 5.80%, 8/1/2016 1,500,000 1,438,605
IDR:
(Brooklyn Navy Yard) 5.75%, 10/1/2036 1,970,000 1,745,381
(LaGuardia Association LP Project) 6%, 11/1/2028 3,790,000 3,498,284
Special Facility Revenue (Terminal One Group
Association Project) 6%, 1/1/2019 3,000,000 2,977,770
New York City Municipal Water Finance Authority,
Water and Sewer System Revenue:
6.20%, 6/15/2021
(Insured; AMBAC) (Prerefunded 6/15/2002) 2,000,000 (a) 2,117,360
5.50%, 6/15/2023 2,000,000 1,868,440
5%, 6/15/2029 (Insured; FSA) 2,500,000 2,129,525
5.75%, 6/15/2031 (Insured; FGIC) 4,000,000 3,852,120
5.50%, 6/15/2032 (Insured; FGIC) 2,000,000 1,842,180
State of New York, GO 5.70%, 3/15/2013 2,000,000 2,006,420
New York State Dormitory Authority, Revenues:
4201 School Program 5%, 7/1/2018 2,000,000 1,711,840
Consolidated City University Systems:
5.35%, 7/1/2009 (Insured; FGIC) 5,000,000 5,046,600
5.75%, 7/1/2013 10,005,000 9,933,965
5.625%, 7/1/2016 2,500,000 2,433,900
5.75%, 7/1/2018 2,500,000 2,431,500
6.30%, 7/1/2024 (Insured; AMBAC)
(Prerefunded 7/1/2004) 2,800,000 (a) 3,031,448
Department of Health:
5.75%, 7/1/2017 5,240,000 5,012,794
(Roswell Park Cancer Center)
6.625%, 7/1/2024 (Prerefunded 7/1/2005) 2,700,000 (a) 2,981,043
(Mental Health Services Facility) 6%, 8/15/2021 1,750,000 1,723,680
(Mount Sinai School of Medicine)
5.15%, 7/1/2024 (Insured; MBIA) 5,765,000 5,147,914
(New York and Presbyterian Hospital)
4.75%, 8/1/2027 (Insured; AMBAC) 5,500,000 4,477,385
Secured Hospital (New York Downtown Hospital)
5.30%, 2/15/2020 5,000,000 4,433,850
8
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenues (continued):
State University Educational Facilities:
5.875%, 5/15/2017 2,060,000 2,050,998
6%, 5/15/2025 (Prerefunded 5/15/2005) 3,825,000 (a) 4,117,459
5.50%, 5/15/2026 (Insured; MBIA) 6,400,000 5,957,504
New York State Energy Research and Development
Authority, Revenue:
Electric Facilities (Long Island Lighting Co.)
5.30%, 11/1/2023 1,600,000 1,416,816
Facilities (Consolidated Edison Co. of
New York, Inc. Project):
6.375%, 12/1/2027 (Insured; MBIA) 5,000,000 5,039,800
7.125%, 12/1/2029 2,000,000 2,182,560
Gas Facilities (Brooklyn Union Gas Co. Project)
6.368%, 4/1/2020 5,000,000 5,183,700
New York State Environmental Facilities Corp.
PCR (Pilgrim State Sewer Project) 6.30%, 3/15/2016 5,200,000 5,340,712
New York State Housing Finance Agency, Revenue:
Health Facilities 6%, 11/1/2007 6,000,000 6,297,060
(Housing Mortgage Project)
6.10%, 11/1/2015 (Insured; FSA) 1,965,000 2,010,745
(LooseStrife Fields Apartments and Fairway Manor)
6.75%, 11/15/2036 (Insured; FHA) 5,895,000 6,170,827
Service Contract Obligation:
6%, 9/15/2016 8,675,000 8,615,229
5.50%, 9/15/2018 6,000,000 5,539,200
6%, 3/15/2026 6,645,000 6,493,959
New York State Local Government Assistance Corp.
5.50%, 4/1/2017 (Insured; FSA) 5,000,000 4,860,650
New York State Medical Care Facilities Finance Agency:
Hospital & Nursing Home Insured Mortgage Revenue:
6.85%, 2/15/2012
(Prerefunded 2/15/2002)(Insured; FHA) 1,570,000 (a) 1,669,098
6.20%, 8/15/2013 (Insured; FHA) 3,000,000 3,086,010
6.125%, 2/15/2015 5,170,000 5,229,972
6.125%, 2/15/2015 (Insured; MBIA) 4,000,000 4,039,320
(Mental Health Service Facilities Improvement)
6.25%, 8/15/2018
(Insured; AMBAC) (Prerefunded 2/15/2002) 4,340,000 (a) 4,594,541
(Sisters of Charity Hospital)
6.625%, 11/1/2018 (Insured; AMBAC) 2,000,000 2,096,060
New York State Mortgage Agency, Homeowner Revenue:
6%, 4/1/2017 2,000,000 1,996,680
6.45%, 10/1/2017 (Insured; MBIA) 1,000,000 1,044,190
The Fund 9
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Mortgage Agency, Homeowner
Revenue (continued):
6.60%, 10/1/2019 3,500,000 3,638,810
6.05%, 4/1/2026 5,350,000 5,379,372
6.40%, 4/1/2027 3,935,000 4,056,001
5.95%, 4/1/2030 3,500,000 3,413,410
New York State Thruway Authority, Service Contract
Revenue (Local Highway and Bridge):
6%, 4/1/2012 6,195,000 6,349,132
6.25%, 4/1/2014 (Prerefunded 4/1/2005) 2,000,000 (a) 2,163,360
5.75%, 4/1/2016 4,950,000 4,784,027
5.75%, 4/1/2019 2,000,000 1,904,480
New York State Urban Development Corp.,
Correctional Facilities Revenue:
5.50%, 1/1/2014 3,000,000 2,895,330
5.50%, 1/1/2014 (Insured; FSA) 3,000,000 2,960,580
5.375%, 1/1/2015 3,000,000 2,787,840
4.75%, 1/1/2028 (Insured; AMBAC) 8,000,000 6,531,600
Newburgh Industrial Development Agency, IDR (Bourne and
Kenney Redevelopment Co.) :
5.65%, 8/1/2020 (Guaranteed; SONYMA) 1,000,000 930,110
5.75%, 2/1/2032 (Guaranteed; SONYMA) 1,535,000 1,408,117
Niagara Frontier Transportation Authority, Airport Revenue
(Buffalo Niagara International Airport):
6.125%, 4/1/2014 (Insured; AMBAC) 2,700,000 2,731,941
5.625%, 4/1/2029 (Insured; MBIA) 2,000,000 1,851,520
Onondaga County Industrial Development Agency,
Sewer Facilities Revenue
(Bristol Meyers Squibb Co. Project) 5.75%, 3/1/2024 4,000,000 3,889,920
Orange County Industrial Development Agency, Life Care
Community Revenue (Glenn Arden Inc. Project)
5.625%, 1/1/2018 1,000,000 866,460
Port Authority of New York and New Jersey:
5.80%, 11/1/2010 (Insured; FGIC) 7,160,000 7,363,702
6.25%, 1/15/2027 (Insured; AMBAC) 2,000,000 2,024,440
4.375%, 10/1/2033 (Insured; FGIC) 2,000,000 1,502,300
Port, Airport and Marina Revenue (Consolidated Bond
116th Series) 4.25%, 10/1/2026 (Insured; FGIC) 3,000,000 2,268,900
Special Obligation Revenue
(Special Project-JFK International Air Terminal):
6.25%, 12/1/2013 (Insured; MBIA) 5,000,000 5,281,000
5.75%, 12/1/2025 (Insured; MBIA) 4,500,000 4,355,190
10
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
Rensselaer County Industrial Development Agency, IDR
(Albany International Corp.) 7.55%, 6/1/2007 4,000,000 4,525,160
Scotia Housing Authority, Housing Revenue (Coburg Village
Inc. Project) 6.15%, 7/1/2028 3,000,000 2,677,590
Triborough Bridge and Tunnel Authority:
General Purpose Revenue:
6.125%, 1/1/2021 5,000,000 5,180,650
5.50%, 1/1/2030 2,000,000 1,846,800
Special Obligation
6%, 1/1/2015 (Insured; AMBAC)
(Prerefunded 1/1/2002) 3,260,000 (a) 3,416,382
Ulster County Industrial Development Agency, Civic Facility
Revenue (Benedictine Hospital Project) 6.45%, 6/1/2024 1,950,000 1,813,012
Yonkers 5.125%, 8/1/2009 (Insured; AMBAC) 2,825,000 2,790,648
Yonkers Industrial Development Agency, Civic Facilities
Revenue (St. Joseph's Hospital) 5.90%, 3/1/2008 3,900,000 3,690,063
U.S. RELATED--3.2%
Puerto Rico Electric Power Authority, Power Revenue
5.40%, 7/1/2013 (Insured; MBIA) 3,700,000 3,690,861
5.929%, 7/1/2023 (Prerefunded 7/1/2002) 2,000,000 (a) 2,095,900
Puerto Rico Highway and Transportation Authority,
Transportation Revenue
6.40%, 7/1/2038 (Insured; MBIA) 2,500,000 (b) 1,734,600
Virgin Islands Public Finance Authority, Revenue
5.50%, 10/1/2014 (Insured; ACA) 4,000,000 3,844,400
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $352,585,196) 96.6% 348,419,529
CASH AND RECEIVABLES (NET) 3.4% 12,126,005
NET ASSETS 100.0% 360,545,534
The Fund 11
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
ACA American Capital Access LOC Letter of Credit
AMBAC American Municipal Bond Assurance LR Lease Revenue
Corporation MBIA Municipal Bond Investors Assurance
COP Certification of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FHA Federal Housing Administration RRR Resources Recovery Revenue
FSA Financial Security Assurance SONYMA State of New York Mortgage
GO General Obligation Association
IDR Industrial Development Revenue
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 46.6
AA Aa AA 7.9
A A A 18.3
BBB Baa BBB 18.4
BB Ba BB .4
Not Rated(c) Not Rated(c) Not Rated(c) 8.4
100.0
12
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND
INTEREST ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE
EARLIEST REFUNDING DATE.
(B) INVERSE FLOATER SECURITY -- THE INTEREST RATE IS SUBJECT TO CHANGE
PERIODICALLY.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
RATED SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 352,585,196 348,419,529
Cash 4,277,211
Receivable for investment securities sold 8,096,823
Interest receivable 5,707,828
Receivable for shares of Common Stock subscribed 370,797
Prepaid expenses 4,822
366,877,010
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 266,963
Due to Distributor 5,655
Payable for investment securities purchased 5,934,493
Payable for shares of Common Stock redeemed 2,296
Accrued Expenses 122,069
6,331,476
- --------------------------------------------------------------------------------
NET ASSETS ($) 360,545,534
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 363,878,080
Accumulated undistributed investment income--net 97,082
Accumulated net realized gain (loss) on investments 736,039
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (4,165,667)
- --------------------------------------------------------------------------------
NET ASSETS ($) 360,545,534
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 19,328,461
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
18.65
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 13
STATEMENT OF OPERATIONS
Year Ended October 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 16,635,340
EXPENSES:
Management fee--Note 3(a) 1,772,246
Shareholder servicing costs--Note 3(b) 733,498
Professional fees 67,971
Custodian fees 31,137
Prospectus and shareholders' reports--Note 3(b) 26,930
Directors' fees and expenses--Note 3(c) 26,927
Registration fees 13,572
Loan commitment fees--Note 2 953
Miscellaneous 30,547
TOTAL EXPENSES 2,703,781
INVESTMENT INCOME--NET 13,931,559
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 728,064
Net unrealized appreciation (depreciation) on investments (28,485,436)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (27,757,372)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (13,825,813)
SEE NOTES TO FINANCIAL STATEMENTS.
14
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
-----------------------------------
1999 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 13,931,559 14,578,552
Net realized gain (loss) on investments 728,064 3,851,809
Net unrealized appreciation (depreciation)
on investments (28,485,436) 6,042,756
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (13,825,813) 24,473,117
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (13,871,417) (14,541,612)
Net realized gain on investments (3,618,844) (2,945,618)
TOTAL DIVIDENDS (17,490,261) (17,487,230)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 49,456,495 73,000,612
Net assets received in connection with
reorganization--Note 1 104,039,500 --
Dividends reinvested 12,742,031 12,761,186
Cost of shares redeemed (67,607,222) (104,474,425)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 98,630,804 (18,712,627)
TOTAL INCREASE (DECREASE) IN NET ASSETS 67,314,730 (11,726,740)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 293,230,804 304,957,544
END OF PERIOD 360,545,534 293,230,804
Undistributed investment income--net 97,082 36,940
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 2,444,560 3,587,659
Shares issued in connection with
reorganization--Note 1 5,461,391 --
Shares issued for dividends reinvested 638,682 625,795
Shares redeemed (3,412,586) (5,110,787)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING 5,132,047 (897,333)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 15
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
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>
Year Ended October 31,
-------------------------------------------------------------------
1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 20.66 20.20 19.66 19.90 18.73
Investment Operations:
Investment income--net .94 .96 .98 1.01 1.06
Net realized and unrealized gain (loss)
on investments (1.77) .65 .66 (.10) 1.29
Total from Investment Operations (.83) 1.61 1.64 .91 2.35
Distributions:
Dividends from investment income--net (.93) (.96) (.98) (1.01) (1.06)
Dividends from net realized gain on
investments (.25) (.19) (.12) (.14) (.12)
Total Distributions (1.18) (1.15) (1.10) (1.15) (1.18)
Net asset value, end of period 18.65 20.66 20.20 19.66 19.90
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (4.16) 8.14 8.63 4.68 12.98
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .92 .90 .91 .91 .86
Ratio of net investment income
to average net assets 4.72 4.70 4.98 5.12 5.51
Decrease reflected in above expense ratios
due to undertakings by the Manager -- -- -- -- .04
Portfolio Turnover Rate 32.53 32.96 66.32 80.30 65.91
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 360,546 293,231 304,958 309,690 322,636
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
16
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
General New York Municipal Bond Fund, Inc. (the "fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a non-diversified
open-end management investment company. The fund's investment objective is to
maximize current income exempt from Federal, New York State and New York City
income taxes to the extent consistent with the preservation of capital. The
Dreyfus Corporation (the "Manager") serves as the fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund
Services, Inc. (the "Distributor") is the distributor of the fund's shares,
which are sold to the public without a sales charge.
On September 23, 1999, pursuant to an Agreement and Plan of Reorganization,
previously approved by the fund's Board of Directors, all or substantially all
of the Dreyfus New York Insured Tax Exempt Bond Fund's assets and liabilities
were transferred to the fund in a tax free exchange of Common Stock of the fund
at net asset value 5,461,391 shares valued at $19.05 per share, representing
net assets of $104,039,500 [including $740,050, net unrealized depreciation on
investments] were exchanged by Dreyfus New York Insured Tax Exempt Bond Fund for
the respective numbers of shares of the fund.
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 (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Directors. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
The Fund 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the fund receives net earnings credits based on available cash
balances left on deposit.
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 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
18
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.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
October 31, 1999, the fund did not borrow under the Facility.
NOTE 3--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 .60 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 year the aggregate expenses of the fund, exclusive of taxes,
brokerage, interest on borrowings, commitment fees and extraordinary expenses,
exceed 11/2% of the value of the fund's average net assets, the fund may deduct
from the payments to be made to the Manager, or the Manager will bear such
excess expense. During the period ended October 31, 1999, there was no expense
reimbursement pursuant to the Agreement.
(B) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1 under the
Act, the fund (a) reimburses the Distributor for pay -
The Fund 19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ments to certain Service Agents (a securities dealer, financial institution or
other industry professional) for distributing the fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, and any affiliate of
either of them (collectively, "Dreyfus") for advertising and marketing relating
to the fund and for Servicing, at an aggregate annual rate of .20 of 1% of the
value of the fund's average daily net assets. Both the Distributor and Dreyfus
may pay one or more Service Agents a fee in respect of the fund's shares owned
by shareholders with whom the Service Agent has a Servicing relationship or for
whom the Service Agent is the dealer or holder of record. Both the Distributor
and Dreyfus determine the amounts, if any, to be paid to Service Agents under
the Plan and the basis on which such payments are made. The fees payable under
the Plan are payable without regard to actual expenses incurred. The Plan also
separately provides for the fund to bear the costs of preparing, printing and
distributing certain of the fund's prospectuses and statements of additional
information and costs associated with implementing and operating the Plan, not
to exceed the greater of $100,000 or .005 of 1% of the value of the fund's
average daily net assets for any full fiscal year. During the period ended
October 31, 1999, the fund was charged $595,400, pursuant to the Plan.
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 October 31, 1999, the fund was charged $92,810 pursuant to the transfer
agency agreement.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $2,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(D) A .10% redemption fee is charged and retained by the fund on shares
redeemed within fifteen days following the date of issuance,
20
including redemptions made through the use of the fund's Exchange privilege.
During the period ended October 31, 1999, redemption fees retained by the fund
amounted to $563.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended October 31, 1999, amounted to
$183,509,549 and $96,240,196, respectively.
At October 31, 1999, accumulated net unrealized depreciation on investments was
$4,165,667, consisting of $6,511,644 gross unrealized appreciation and
$10,677,311 gross unrealized depreciation.
At October 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund 21
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
General New York Municipal Bond Fund, Inc.
We have audited the accompanying statement of assets and liabilities of General
New York Municipal Bond Fund, Inc., including the statement of investments, as
of October 31, 1999, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and financial highlights for each of the years indicated
therein. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1999 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
General New York Municipal Bond fund, Inc. at October 31, 1999, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the indicated years, in conformity with generally accepted accounting
principles.
[ERNST & YOUNG LLP SIGNATURE LOGO]
New York, New York
December 7, 1999
22
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund hereby makes the following
designations regarding its fiscal year ended October 31, 1999:
- -- all the dividends paid from investment income-net are "exempt-interest
dividends" (not generally subject to regular Federal income tax and, for
individuals who are New York residents, New York State and New York City
personal income taxes), and
- -- the fund hereby designates $.1972 per share as a long-term capital
gain distribution of the $.2533 per share paid on December 9, 1998.
As required by Federal tax law rules, shareholders will receive notification of
their portion of the fund's taxable ordinary dividends (if any) and capital gain
distributions (if any) paid for the 1999 calendar year on Form 1099-DIV which
will be mailed by January 31, 2000.
The Fund 23
NOTES
For More Information
General New York Municipal Bond Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to
[email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 949AR9910
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN GENERAL NEW YORK MUNICIPAL BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
LEHMAN GENERAL
BROTHERS NEW YORK
PERIOD MUNICIPAL MUNICIPAL
BOND INDEX * BOND FUND, INC.
10/31/89 10,000 10,000
10/31/90 10,742 10,546
10/31/91 12,049 12,110
10/31/92 13,060 13,107
10/31/93 14,899 15,473
10/31/94 14,250 14,453
10/31/95 16,365 16,330
10/31/96 17,298 17,093
10/31/97 18,767 18,570
10/31/98 20,271 20,081
10/31/99 19,912 19,245
*Source: Lehman Brothers
