General
New York Municipal
Bond Fund, Inc.
SEMIANNUAL REPORT April 30, 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
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
15 Financial Highlights
16 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
General New York
Municipal Bond Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for General New York Municipal
Bond Fund, Inc., covering the six-month period from November 1, 1999 through
April 30, 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, Monica Wieboldt.
The U.S. economy grew strongly over the past six months 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 three times during the
reporting period. These rate hikes contributed to a total interest-rate increase
of 1.25 percentage points since late June 1999, before the current reporting
period began. While higher interest rates generally led to an erosion of
municipal bond prices during much of the reporting period, the tax-exempt bond
market generally showed renewed signs of strength during the first four months
of 2000.
Municipal bonds were also affected by supply-and-demand considerations. These
technical influences have caused the yields of tax-exempt bonds to rise to very
attractive levels compared to the after-tax yields of taxable bonds of
comparable maturity and credit quality, making tax-exempt bonds especially
attractive for investors in the higher federal and state income tax brackets.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in General New York Municipal Bond Fund, Inc.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 15, 2000
2
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did General New York Municipal Bond Fund, Inc. perform during the period?
The fund achieved a 2.74% total return over the six-month period ended April 30,
2000.(1) In comparison, the Lipper New York Municipal Debt Funds category
average returned 2.36% over the same period.(2)
We attribute the fund's good absolute and relative performance to our defensive
strategy for our core holdings during a difficult investment environment. In
addition, we believe that the fund benefited from our focus on income from bonds
that we consider to be shorter term, more opportunistic holdings.
What is the fund's investment approach?
The fund's goal is to seek a high level of federal and New York tax-exempt
income from a diversified portfolio of longer term municipal bonds. We also
manage the fund within this objective to achieve a competitive total return,
which includes both income and changes in share price.
In pursuing 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 fund's performance?
Although the portfolio's performance was hurt by a difficult investment
environment during the final two months of 1999, the first four months of 2000
generally provided better market conditions and a market rally. This rally
helped offset most -- but not all -- of 1999's decline.
When the reporting period began on November 1, 1999, investors had become
concerned that strong economic growth might rekindle long-dormant inflationary
pressures, especially wages in a tight job market. In an attempt to ease these
pressures and forestall a reacceleration of inflation, the Federal Reserve Board
(the "Fed") raised short-term interest rates three times during the reporting
period, causing most bond prices to fall. These interest-rate hikes followed two
previous increases implemented before the current reporting period began, for a
total increase of 1.25 percentage points since mid-1999.
Municipal bond prices also fell during November and December, 1999, because of
adverse supply-and-demand influences. For a variety of reasons, institutional
investors such as insurance companies and mutual funds participated less in the
tax-exempt market. Despite strong demand from individual investors, the absence
of institutional buyers helped reduce overall demand and drove municipal bond
prices down. During the first quarter of 2000, however, issuance of municipal
bonds nationally declined approximately 20% compared to the same period one year
ago. This supply reduction, combined with robust demand from individual
investors, helped support a rebound of municipal bond prices, from which the
fund's holdings benefited.
Although New York is considered a high-issuance state, the supply of newly
issued bonds has declined here as well. Some New York municipalities that
refinanced bond issues during the low interest-rate environment over the past
several years are expected to be absent from this year's municipal bond
marketplace.
4
What is the fund's current strategy?
In the wake of the market rally that took place during the first four months of
2000, we have begun to adopt a more defensive posture. That's because we
anticipate more interest-rate increases from the Fed, which could come as early
as their next meeting on May 16. Accordingly, we have begun to gradually reduce
the fund's average duration in an attempt to provide the flexibility we need to
avoid the brunt of potentially lower prices as well as to capture higher yields
as they become available.
From a security selection perspective, we have been reducing our holdings of
bonds that may be close to early redemption by their issuers. That's because
municipal bonds tend to have limited appreciation potential when they are close
to potential early redemption, also known as their CALL DATES.
May 15, 2000
(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
STATEMENT OF INVESTMENTS
April 30, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.8% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NEW YORK--95.2%
Albany Industrial Development Agency:
Civic Facility Revenue (Sage Colleges Project)
5.30%, 4/1/2029 2,265,000 1,970,799
IDR (Hampton Plaza Project) 6.25%, 3/15/2018 5,600,000 5,336,296
LR:
(New York State Assembly Building Project)
7.75%, 1/1/2010 3,255,000 3,307,731
(New York State Department of Health Building Project)
7.25%, 10/1/2010 1,720,000 1,778,308
Board of Cooperative Educational Services, COP
(Greenport Vocational Facility Project) 7.875%, 10/1/2000 311,376 314,527
Cohoes Industrial Development Agency, IDR (Norlite Corp.
Project) 6.75%, 5/1/2009
(LOC; Dresdner Bank, Prerefunded 5/1/2002) 2,400,000 (a) 2,523,144
Development Authority of the North Country,
Solid Waste Management System Revenue
6%, 5/15/2015 (Insured; FSA) 2,260,000 2,384,051
Franklin County Solid Waste Management Authority, Solid
Waste System Revenue 6.125%, 6/1/2009 1,350,000 1,321,434
Huntington Housing Authority, Senior Housing Facility Revenue
(Gurwin Jewish Senior Residences) 6%, 5/1/2029 1,370,000 1,113,084
Islip Resource Recovery Agency, RRR
6.125%, 7/1/2013 (Insured; AMBAC) 1,425,000 1,462,349
Long Island Power Authority, Electric System Revenue
5.25%, 12/1/2026 (Insured; MBIA) 3,000,000 2,700,840
Metropolitan Transportation Authority, Transportation Facilities
Revenue:
5.007%, 7/1/2014 (Insured; FSA) 2,000,000 (b,c) 1,802,340
6%, 7/1/2016 (Insured; FSA) 5,000,000 5,130,950
6.50%, 7/1/2018 (Insured; FGIC) (Prerefunded 7/1/2002) 4,000,000 (a) 4,212,800
4.75%, 7/1/2026 (Insured: FGIC) 2,000,000 1,656,960
Nassau County Industrial Development Agency,
Civic Facility Revenue (Hofstra University Project)
4.75%, 7/1/2028 (Insured; MBIA) 2,000,000 1,643,260
New York City:
6%, 8/1/2007 (Insured; FGIC) 2,000,000 2,102,300
6.375%, 8/15/2012 2,670,000 2,771,567
5.875%, 8/15/2013 3,300,000 3,353,790
6%, 8/1/2016 4,000,000 4,068,520
5.875%, 8/15/2016 2,715,000 2,732,430
New York City Industrial Development Agency:
Civic Facility Revenue:
(College of Aeronautics Project) 5.50%, 5/1/2028 1,600,000 1,397,648
6
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York City Industrial Development Agency (continued):
Civic Facility Revenue (continued):
(YMCA of Greater New York Project) 5.80%, 8/1/2016 1,500,000 1,465,155
IDR:
(Brooklyn Navy Yard) 5.75%, 10/1/2036 1,970,000 1,726,666
(LaGuardia Association LP Project) 6%, 11/1/2028 3,790,000 3,236,357
Special Facility Revenue (Terminal One Group
Association Project) 6%, 1/1/2019 3,000,000 2,994,690
New York City Municipal Water Finance Authority,
Water and Sewer System Revenue:
5.50%, 6/15/2023 2,000,000 1,881,580
5.75%, 6/15/2031 (Insured; FGIC) 4,000,000 3,914,640
5.50%, 6/15/2032 (Insured; FGIC) 4,500,000 4,235,535
New York City Transitional Finance Authority,
Future Tax Secured Revenue 6%, 11/15/2013 3,000,000 3,144,930
State of New York, GO 5.70%, 3/15/2013 2,000,000 2,018,080
New York State Dormitory Authority, Revenues:
4201 School Program 5%, 7/1/2018 2,000,000 1,753,200
Consolidated City University Systems:
5.35%, 7/1/2009 (Insured; FGIC) 3,000,000 3,022,470
5.75%, 7/1/2013 10,005,000 10,128,662
5.25%, 7/1/2014 (Insured; FGIC) 2,000,000 1,927,700
5.625%, 7/1/2016 2,500,000 2,493,200
5.75%, 7/1/2018 2,500,000 2,501,175
6.30%, 7/1/2024 (Insured; AMBAC) (Prerefunded
7/1/2004) 2,800,000 (a) 2,975,840
Department of Health:
5.75%, 7/1/2017 (Insured; MBIA) 5,240,000 5,236,699
(Roswell Park Cancer Center)
6.625%, 7/1/2024 (Prerefunded 7/1/2005) 2,700,000 (a) 2,928,501
(Miriam Osborn Memorial Home)
6.875%, 7/1/2019 (Insured; ACA) 1,475,000 1,563,588
(Mount Sinai School of Medicine)
5.15%, 7/1/2024 (Insured; MBIA) 5,765,000 5,186,079
Secured Hospital (New York Downtown Hospital)
5.30%, 2/15/2020 (Insured; MBIA) 5,000,000 4,614,050
State University Educational Facilities:
5.875%, 5/15/2017 2,060,000 2,126,208
6%, 5/15/2025 (Prerefunded 5/15/2005) 3,825,000 (a) 4,054,156
5.50%, 5/15/2026 (Insured; MBIA) 6,400,000 6,049,152
New York State Energy Research and Development Authority,
Revenue:
Electric Facilities (Long Island Lighting Co.)
5.30%, 11/1/2023 1,600,000 1,406,000
The Fund 7
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Energy Research and Development Authority,
Revenue (continued):
Facilities (Consolidated Edison Co. of
New York, Inc. Project):
6.375%, 12/1/2027 (Insured; MBIA) 5,000,000 5,070,050
7.125%, 12/1/2029 2,000,000 2,154,740
Gas Facilities (Brooklyn Union Gas Co. Project)
6.368%, 4/1/2020 5,000,000 5,105,850
New York State Environmental Facilities Corp.
PCR (Pilgrim State Sewer Project) 6.30%, 3/15/2016 5,200,000 5,354,440
New York State Housing Finance Agency, Revenue:
Health Facilities 6%, 11/1/2007 6,000,000 6,173,220
(Housing Mortgage Project)
6.10%, 11/1/2015 (Insured; FSA) 1,965,000 2,009,900
(LooseStrife Fields Apartments and Fairway Manor)
6.75%, 11/15/2036 (Insured; FHA) 5,875,000 6,084,091
Service Contract Obligation:
6%, 9/15/2016 8,675,000 8,768,170
5.50%, 9/15/2018 6,000,000 5,665,020
New York State Local Government Assistance Corp.
5.50%, 4/1/2017 (Insured; FSA) 5,000,000 4,991,600
New York State Medical Care Facilities Finance Agency:
Hospital & Nursing Home Insured Mortgage Revenue:
6.20%, 8/15/2013 (Insured; FHA) 3,000,000 3,071,340
6.125%, 2/15/2015 5,170,000 5,297,699
6.125%, 2/15/2015 (Insured; MBIA) 4,000,000 4,116,960
(Mental Health Service Facilities Improvement)
6.25%, 8/15/2018
(Insured; AMBAC) (Prerefunded 2/15/2002) 4,340,000 (a) 4,527,618
(Sisters of Charity Hospital)
6.625%, 11/1/2018 (Insured; AMBAC) 2,000,000 2,084,160
New York State Mortgage Agency, Homeowner Revenue:
6%, 4/1/2017 2,000,000 2,013,620
6.60%, 10/1/2019 3,500,000 3,601,290
6.05%, 4/1/2026 5,125,000 5,098,145
6.40%, 4/1/2027 3,905,000 3,983,608
5.95%, 4/1/2030 3,500,000 3,390,170
New York State Thruway Authority, Service Contract Revenue
(Local Highway and Bridge):
6%, 4/1/2012 6,195,000 6,351,548
6.25%, 4/1/2014 (Prerefunded 4/1/2005) 2,000,000 (a) 2,131,520
5.75%, 4/1/2016 4,950,000 4,906,490
5.75%, 4/1/2019 2,000,000 1,949,740
8
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Urban Development Corp.,
Correctional Facilities Revenue:
5.50%, 1/1/2014 3,000,000 2,961,480
5.50%, 1/1/2014 (Insured; FSA) 3,000,000 3,021,270
5.375%, 1/1/2015 3,000,000 2,856,390
4.75%, 1/1/2028 (Insured; AMBAC) 5,000,000 4,117,200
Newburgh Industrial Development Agency, IDR (Bourne and
Kenney Redevelopment Co.) :
5.65%, 8/1/2020 (Guaranteed; SONYMA) 1,000,000 944,080
5.75%, 2/1/2032 (Guaranteed; SONYMA) 1,535,000 1,430,420
Niagara Frontier Transportation Authority, Airport Revenue
(Buffalo Niagara International Airport)
6.125%, 4/1/2014 (Insured; AMBAC) 2,700,000 2,767,905
Onondaga County Industrial Development Agency,
Sewer Facilities Revenue
(Bristol Meyers Squibb Co. Project) 5.75%, 3/1/2024 4,000,000 3,956,160
Orange County Industrial Development Agency, Life Care
Community Revenue (Glenn Arden Inc. Project)
5.625%, 1/1/2018 1,000,000 816,660
Port Authority of New York and New Jersey:
5.80%, 11/1/2010 (Insured; FGIC) 7,160,000 7,352,604
6.25%, 1/15/2027 (Insured; AMBAC) 2,000,000 2,023,840
4.375%, 10/1/2033 (Insured; FGIC) 2,000,000 1,511,380
Port, Airport and Marina Revenue (Consolidated Bond
116th Series) 4.25%, 10/1/2026 (Insured; FGIC) 3,000,000 2,287,230
Special Obligation Revenue
(Special Project-JFK International Air Terminal)
6.25%, 12/1/2013 (Insured; MBIA) 5,000,000 5,402,750
Rensselaer County Industrial Development Agency, IDR
(Albany International Corp.) 7.55%, 6/1/2007 4,000,000 4,443,440
Scotia Housing Authority, Housing Revenue (Coburg Village
Inc. Project) 6.15%, 7/1/2028 3,000,000 2,519,850
Triborough Bridge and Tunnel Authority:
General Purpose Revenue:
6.125%, 1/1/2021 5,000,000 5,258,800
5.50%, 1/1/2030 2,000,000 1,879,080
Special Obligation
6%, 1/1/2015 (Insured; AMBAC) (Prerefunded 1/1/2002) 3,260,000 (a) 3,370,090
TSASC, Inc., Tobacco Flexible Amortization Bonds
6.375%, 7/15/2039 6,000,000 5,954,760
Ulster County Industrial Development Agency, Civic Facility
Revenue (Benedictine Hospital Project) 6.45%, 6/1/2024 1,950,000 1,722,162
The Fund 9
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
Yonkers Industrial Development Agency, Civic Facilities
Revenue (St. Joseph's Hospital) 5.90%, 3/1/2008 3,900,000 3,680,391
U.S. RELATED--3.6%
Puerto Rico Electric Power Authority, Power Revenue
5.40%, 7/1/2013 (Insured; MBIA) 3,700,000 3,730,858
5.929%, 7/1/2023 (Prerefunded 7/1/2002) 2,000,000 (a) 2,075,120
Puerto Rico Highway and Transportation Authority,
Transportation Revenue
5%, 7/1/2038 (Insured; MBIA) 2,500,000 2,144,850
Virgin Islands Public Finance Authority, Revenue
5.50%, 10/1/2014 (Insured; ACA) 4,000,000 3,836,480
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $323,914,535) 98.8% 323,635,680
CASH AND RECEIVABLES (NET) 1.2% 3,892,560
NET ASSETS 100.0% 327,528,240
</TABLE>
10
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <C> <C>
ACA American Capital Access LOC Letter of Credit
AMBAC American Municipal Bond LR Lease Revenue
Assurance Corporation
COP Certificate of Participation MBIA Municipal Bond Investors
Assurance Insurance
Corporation
FGIC Financial Guaranty Insurance PCR Pollution Control Revenue
Company
FHA Financial Housing Administration RRR Resources Recovery Revenue
FSA Financial Security Assurance SONYMA State of New York Mortgage
Association
GO General Obligation IDR Industrial Development Revenue
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 48.1
AA Aa AA 11.3
A A A 29.4
BBB Baa BBB 2.7
BB B BB .4
Not Rated(d) Not Rated(d) Not Rated(d) 8.1
100.0
</TABLE>
(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) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933. THIS SECURITY MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION,
NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT APRIL 30, 2000, THIS
SECURITY AMOUNTED TO $1,802,340 OR .6% OF NET ASSETS.
(D) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
RATED SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 11
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 323,914,535 323,635,680
Interest receivable 5,667,092
Receivable for investment securities sold 2,050,204
Prepaid expenses 4,389
331,357,365
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 238,027
Cash overdraft due to Custodian 1,536,070
Payable for investment securities purchased 1,965,392
Payable for shares of Common Stock redeemed 2,420
Accrued expenses 87,216
3,829,125
--------------------------------------------------------------------------------
NET ASSETS ($) 327,528,240
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 330,868,386
Accumulated undistributed investment income--net 89,477
Accumulated net realized gain (loss) on investments (3,150,768)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (278,855)
--------------------------------------------------------------------------------
NET ASSETS ($) 327,528,240
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 17,556,423
NET ASSETS VALUE, offering and redemption price per share--Note3(d) ($)
18.66
SEE NOTES TO FINANCIAL STATEMENTS.
12
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 10,005,055
EXPENSES:
Management fee--Note 3(a) 1,010,896
Shareholder servicing costs--Note 3(b) 440,104
Directors' fees and expenses--Note 3(c) 22,742
Professional fees 21,496
Prospectus and shareholders' reports 20,255
Custodian fees 16,463
Registration fees 3,214
Loan commitment fees--Note 2 858
Miscellaneous 9,476
TOTAL EXPENSES 1,545,504
INVESTMENT INCOME--NET 8,459,551
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (3,158,849)
Net unrealized appreciation (depreciation) on investments 3,886,812
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 727,963
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 9,187,514
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 13
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 2000, Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 8,459,551 13,931,559
Net realized gain (loss) on investments (3,158,849) 728,064
Net unrealized appreication (depreciation)
on investments 3,886,812 (28,485,436)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 9,187,514 (13,825,813)
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (8,467,156) (13,871,417)
Net realized gain on investments (727,958) (3,618,844)
TOTAL DIVIDENDS (9,195,114) (17,490,261)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 25,707,676 49,456,495
Net assets received in connection with
reorganization--Note 1 -- 104,039,500
Dividends reinvested 6,468,284 12,742,031
Cost of shares redeemed (65,185,654) (67,607,222)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (33,009,694) 98,630,804
TOTAL INCREASE (DECREASE) IN NET ASSETS (33,017,294) 67,314,730
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 360,545,534 293,230,804
END OF PERIOD 327,528,240 360,545,534
Undistributed investment income--net 89,477 97,082
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,385,947 2,444,560
Shares issued in connection with reorganization--Note 1 -- 5,461,391
Shares issued for dividends reinvested 348,011 638,682
Shares redeemed (3,505,996) (3,412,586)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,772,038) 5,132,047
SEE NOTES TO FINANCIAL STATEMENTS.
14
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>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31,
-----------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 18.65 20.66 20.20 19.66 19.90 18.73
Investment Operations:
Investment income--net .46 .94 .96 .98 1.01 1.06
Net realized and unrealized
gain (loss) on investments .05 (1.77) .65 .66 (.10) 1.29
Total from Investment Operations .51 (.83) 1.61 1.64 .91 2.35
Distributions:
Dividends from investment
income--net (.46) (.93) (.96) (.98) (1.01) (1.06)
Dividends from net realized gain
on investments (.04) (.25) (.19) (.12) (.14) (.12)
Total Distributions (.50) (1.18) (1.15) (1.10) (1.15) (1.18)
Net asset value, end of period 18.66 18.65 20.66 20.20 19.66 19.90
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 5.50(a) (4.16) 8.14 8.63 4.68 12.98
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .91(a) .92 .90 .91 .91 .86
Ratio of net investment income
to average net assets 5.01(a) 4.72 4.70 4.98 5.12 5.51
Decrease reflected in above
expense ratios due to
undertakings by The Dreyfus
Corporation -- -- -- -- -- .04
Portfolio Turnover Rate 9.56(b) 32.53 32.96 66.32 80.30 65.91
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 327,528 360,546 293,231 304,958 309,690 322,636
(A) ANNUALIZED.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund 15
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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., which is a wholly-owned
subsidiary of Mellon Financial Corporation. Effective March 22, 2000, Dreyfus
Service Corporation ("DSC"), a wholly-owned subsidiary of the Manager, became
the distributor of the fund's shares, which are sold to the public without a
sales charge. Prior to March 22, 2000, Premier Mutual Fund Services, Inc. was
the distributor.
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
16
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 (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
The Fund 17
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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.
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 April
30, 2000, 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 1 1/2% 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 April 30, 2000, there was no expense
reimbursement pursuant to the Agreement.
18
(b) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1 under the
Act, the fund pays the distributor for distributing the fund's shares, for
servicing shareholder accounts, ("Servicing") and for advertising and marketing
relating to the fund.The Plan provides payments to be made at an aggregate
annual rate of .20 of 1% of the value of the fund's average daily net assets.
Prior to March 22, 2000, Premier Mutual Fund Services, Inc. and not DSC,
received payments under the Plan for distributing fund shares and for servicing
shareholder accounts.The distributor determines 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 April 30, 2000, the fund was charged $338,914 pursuant to the
Plan, of which $305,826 was paid to DSC.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended April 30, 2000, the fund was charged $60,637 pursuant to the transfer
agency agreement.
(c) 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 receives an annual fee of $50,000 and a fee of $6,500 for each
meeting held in person and $500 for telephone meetings. These fees are allocated
among the funds in the Fund Group. The Chairman of the Board receives an
additional 25% of such compensation. Prior to April 13, 2000, each Board member
who was not an "affiliated person" as defined in the Act received from the fund
an annual fee of $2,500 and an attendance fee of $500 per meeting. The Chairman
of the Board received
The Fund 19
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
an additional 25% of such compensation. Subject to the fund's Director Emeritus
Program Guidelines, Emeritus Board members, if any, receive 50% of the fund's
annual retainer fee and per meeting fee paid at the time the Board member
achieved emeritus status.
(d) A .10% redemption fee is charged and retained by the fund on shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege. During the period ended April
30, 2000, redemption fees charged and retained by the fund amounted to $35.
Effective June 1, 2000, this fee will be chargeable within thirty days following
the dated of issuance of such shares.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended April 30, 2000, amounted to
$31,815,247 and $56,806,662, respectively.
At April 30, 2000, accumulated net unrealized depreciation on investments was
$278,855, consisting of $7,238,148 gross unrealized appreciation and $7,517,003
gross unrealized depreciation.
At April 30, 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).
20
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
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 949SA004
