PRESIDENT'S LETTER
Dear Shareholder:
Since our last report to shareholders, the bond markets have been in a
state of flux. Bond prices rallied to a cyclical high last October, and have
moved irregularly lower ever since. Today, long-term municipal bonds are
returning 1% more than they were only six months ago. Reflecting this
move, the Fund's net asset value declined by approximately $1.12 per
share (adjusted for capital gain distributions) to $13.18 during the six
months ended March 31, 1994. Partially offsetting were income dividends
paid per share of approximately $.39. This translates to an annualized tax
exempt distribution rate per share of 5.97%, based on the March 31, 1994
net asset value, adjusted for capital gain distributions. All dividends paid
were exempt from Federal, California State and local income taxes.*
Soon after his inauguration last year, President Clinton quickly moved
to outline his domestic economic agenda, which called for higher taxes
and a substantial reduction in the Federal budget deficit. In return, it was
expected that the Federal Reserve Board would continue to maintain a
stimulative monetary policy. In fact, Congress approved a budget package
in early August that tilted fiscal policy toward deficit reduction. In
response, interest rates accelerated their downward move during the
summer before finally reaching their low point during the fourth quarter
of last year.
The first quarter of 1994 will be memorialized as the end of five years
of accommodative Federal Reserve policy. Since February, the Federal
Funds rate has been raised three times. Generally, it is anticipated that
further rate hikes will be forthcoming should the economy continue to
signal an unacceptable rate of growth. With such a heightened degree of
nervousness influencing both bonds and stocks, the markets could remain
quite volatile.
Higher bond yields have had an effect on the supply of new municipal
bonds. While 1993 was a record year for bond issuance, new issuance has
fallen dramatically this year. Should inflation fears subside and interest
rates stabilize, attractive investment opportunities could surface in
municipal securities: new issuance has been reduced, the highest marginal
Federal tax rate has been increased to nearly 40%, and municipal bonds are
yielding substantially more than they were only a few months ago.
However, at this juncture, it is still uncertain as to whether or when such
a scenario will unfold.
After four years of recession, the economic fortunes of California are
finally improving. Since the beginning of this year, the State's economy
has added nearly 30,000 jobs, many of which are attributable to the
construction boom and infusion of Federal aid to Southern California
following the January earthquake. While rising interest rates could
threaten the recovery, especially in the home building industry, many
economists are still predicting better times ahead. The long-term outlook
for the State's municipal credits should also be improving.
As we stated in our annual report to shareholders (dated 10/11/93), it
was our intention to adopt a more defensive portfolio posture in order to
reduce the volatility of the portfolio. In response, we reduced the Fund's
exposure to those bonds with the longest durations (price sensitivities)
while maintaining the more defensive securities (e.g., pre-refunded
bonds), and building adequate cash reserves. We still believe that a
conservative stance is warranted in view of the heightened degree of
uncertainty about the near-term direction of the economy and inflation.
Certainly, recent moves by the Fed to hike short-term interest rates
provide enough of an impetus to maintain a cautious stance. Historically,
the Fed has acted in a series of moves rather than taking a "one shot
approach".
As we have witnessed in recent weeks, negative influences on the
markets can be quite powerful. The potential still exists for further
market volatility and higher yields before bond prices begin to rise again.
At difficult times such as these, it is easy to lose sight of the forest
through the trees, as emotion often substitutes for logical investment
reasoning. This Fund is managed with the intention of achieving long-term
performance and income goals. We appreciate your investment in the Fund,
and we want to assure you that we are at all times working in the Fund's
best interest.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
President
April 18, 1994
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders. Capital gains, if any, are generally subject
to Federal, State and local taxes.
<TABLE>
<CAPTION>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS-100.0% AMOUNT VALUE
------------ ------------
<S> <C> <C>
CALIFORNIA-90.5%
ABAG Finance Corp., COP (ABAG XXIV) 6.90%, 4/1/2012............................ $ 3,500,000 $ 3,556,630
Alameda Housing Authority, MFHR
(Independence Apartments Project) 7.50%, 2/20/2031 (Collateralized; GNMA).. 3,605,000 3,855,151
Allan Hancock Joint Community College District, COP, Refunding
7.625%, 10/1/2005.......................................................... 1,055,000 1,132,775
Anaheim Public Financing Authority, Tax Allocation Revenue
10.07%, 12/28/2018 (a)..................................................... 3,000,000 3,093,750
Beaumont Unified School District, COP (Capital Improvement Project)
7.70%, 1/1/2021............................................................ 1,100,000 1,154,142
Berkeley, HR (Alta Bates Project) 7.65%, 12/1/2015............................. 465,000 529,649
California Department of Water Resources, Revenue (Central Valley Project)
9.497%, 12/1/2026 (a,b).................................................... 6,300,000 6,339,375
California Educational Facilities Authority, Revenue:
(Chapman College) 7.50%, 1/1/2018.......................................... 1,760,000 1,885,030
(Refunding-Pooled College and University Financings) 6.125%, 6/1/2009...... 3,000,000 2,817,360
(University of San Francisco) 6.30%, 10/1/2007............................ 2,470,000 2,534,838
California Health Facilities Authority, Revenue (Pacific Presbyterian Hospital)
7.60%, 6/1/2015............................................................ 930,000 1,029,287
California Health Facilities Financing Authority, Revenue:
(Childrens' Hospital of Los Angeles) 7.125%, 6/1/2021...................... 2,000,000 2,265,040
(Episcopal Homes) 7.80%, 7/1/2015.......................................... 775,000 831,606
(Help Group) 7%, 8/1/2021
(Insured; California Health Facilities Construction Loan Program)...... 1,800,000 1,855,818
(Pomona Valley Hospital Medical Center) 7.375%, 1/1/2014................... 750,000 804,780
(Refunding - Health Dimensions):
7.50%, 5/1/2015........................................................ 2,645,000 2,691,129
7%, 5/1/2020........................................................... 6,000,000 5,852,220
(Walden House) 6.85%, 3/1/2022............................................. 3,225,000 3,247,994
California Housing Finance Agency:
Home Mortgage Revenue:
Zero Coupon, 8/1/2023.................................................. 14,235,000 1,467,628
7.50%, 8/1/2029........................................................ 1,915,000 1,997,862
7.65%, 8/1/2029........................................................ 1,010,000 1,055,824
7.60%, 8/1/2030........................................................ 2,155,000 2,206,634
7.70%, 8/1/2030........................................................ 1,540,000 1,598,304
7.875%, 8/1/2031....................................................... 665,000 667,095
Multiple Unit Rental Housing Revenue 6.875%, 8/1/2024...................... 500,000 508,995
California Pollution Control Financing Authority, Revenue:
Pollution Control (Southern California Edison Co.) 6.40%, 12/1/2024........ 5,000,000 4,946,400
Solid Waste Disposal (North County Recycling Center)
6.75%, 7/1/2011 (LOC; Union Bank of Switzerland) (c)................... 3,500,000 3,622,500
California Public Works Board, Lease Revenue:
(Department of Correction - Madera State Prison) 6%, 6/1/2010.............. 3,000,000 2,960,040
(Library and Courts Annex Building) 6%, 5/1/2013........................... 4,500,000 4,346,145
(Regents of the University of California) 7%, 9/1/2015..................... 1,750,000 1,963,430
(University of California Projects) 5.55%, 6/1/2010........................ 3,195,000 2,975,280
California State:
6.50%, 9/1/2010............................................................ 5,750,000 6,102,992
6.125%, 10/1/2011.......................................................... 8,000,000 8,150,960
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
CALIFORNIA (CONTINUED)
California Statewide Communities Development Authority, COP, Revenue, Refunding:
Health Facilities (Barton Memorial Hospital)
6.50%, 12/1/2009(LOC; Banque Nationale De Paris) (c)................... $ 1,600,000 $ 1,619,440
(Triad Healthcare):
6.25%, 8/1/2006........................................................ 4,570,000 4,442,725
6.50%, 8/1/2022........................................................ 3,000,000 2,830,860
California Statewide Communities Development Corp., COP (Pacific Homes)
5.90%, 4/1/2009............................................................ 7,000,000 6,479,480
Campbell, COP, Refunding (Civic Center Project) 6.90%, 10/1/2018............... 3,760,000 4,222,705
Capistrano Unified School District, Special Tax
(Community Facilities District Number 88) 7.60%, 9/1/2014.................. 500,000 528,910
Central School District of San Bernardino County 7.05%, 5/1/2016............... 1,825,000 2,029,217
Chico Public Finance Authority, Revenue
(Chico Municipal Airport and Central Chico Redevelopment Project)
7.40%, 4/1/2021........................................................ 2,410,000 2,557,709
Commerce Joint Powers Financing Authority, Revenue, Multiple Project Loans
8%, 3/1/2022............................................................... 2,605,000 2,733,557
Compton, COP, Refunding 7.50%, 8/1/2005 (LOC; Mitsui Trust and Banking) (c).... 2,680,000 2,863,446
Dry Creek Joint School District, Special Tax
(Community Facilities District Number 1) 7.25%, 9/1/2011................... 2,500,000 2,557,100
East Bay Municipal Utility District, Water Systems Revenue
7.60%, 6/1/2020 (Insured; MBIA)............................................ 3,000,000 3,450,030
Folsom Public Financing Authority, Local Agency Revenue 7.70%, 10/1/2020....... 1,200,000 1,222,704
Fontana Public Financing Authority, Tax Allocation Revenue
(North Fontana Redevelopment Project) 7.25%, 9/1/2020...................... 2,000,000 2,167,320
Fresno, Health Facility Revenue
(Holy Cross Health Systems-Saint Agnes Medical Center) 6.625%, 6/1/2021.... 2,000,000 2,036,000
Fresno Unified School District, COP (Project Phase VI) 7.20%, 5/1/2011......... 4,250,000 4,535,387
Glendora Public Finance Authority, Tax Allocation Revenue 7.625%, 9/1/2010..... 1,500,000 1,631,595
Hollister Redevelopment Agency, Tax Allocation
(Hollister Community Development Project) 7.55%, 10/1/2013................. 1,000,000 1,075,000
Inglewood, HR (Daniel Freeman Hospital) 6.75%, 5/1/2013........................ 2,000,000 2,071,340
Irvine Ranch Water District, Joint Powers Agency, Local Pool Revenue
8.25%, 8/15/2023........................................................... 3,000,000 3,217,620
La Mirada Redevelopment Agency (Tax Allocation-Industrial Commercial Redevelopment)
6.80%, 8/15/2021........................................................... 3,950,000 4,031,014
Lake Elsinore Public Financing Authority, Local Agency Revenue 8%, 10/1/2020... 3,390,000 3,430,917
Long Beach Financing Authority, Revenue, Refunding
6%, 11/1/2008 (Insured; AMBAC)............................................. 3,525,000 3,562,365
Los Alamitos Union Free School District, Special Tax
(Community Facilities District Number 1) 7.15%, 8/15/2021.................. 2,000,000 2,058,280
Los Angeles City:
Single Family Home Mortgage Revenue 7.55%, 12/1/2023 (Collateralized; GNMA) 360,000 373,777
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
CALIFORNIA (CONTINUED)
Los Angeles City (continued):
Wastewater Systems Revenue:
6.70%, 12/1/2021 (Insured; MBIA)....................................... $ 3,750,000 $ 4,133,137
Refunding 7.10%, 6/1/2018.............................................. 6,980,000 7,540,145
Los Angeles Building Authority, Lease Revenue, Refunding
(Department of General Services):
5.375%, 5/1/2006....................................................... 4,060,000 3,885,867
5.60%, 5/1/2008........................................................ 8,000,000 7,661,520
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue,
Refunding 5.50%, 7/1/2013.................................................. 3,250,000 3,044,502
Los Angeles County Transport Commission, Sales Tax Revenue 6.90%, 7/1/2021..... 5,500,000 6,160,605
Los Angeles Department of Water and Power:
Electric Pilot Revenue:
7.10%, 1/15/2031....................................................... 2,750,000 3,067,405
9.135%, 1/15/2033 (a,b)................................................ 10,000,000 9,212,500
Waterworks Revenue 7.625%, 8/1/2027........................................ 2,000,000 2,234,700
Newhall Elementary and Castaic Union School District, COP
(School Improvement Project) 7.70%, 3/1/2011............................... 2,695,000 2,861,282
Northern California Power Agency, Public Power Revenue, Refunding:
(Geothermal Project Number 3) 5.80%, 7/1/2009.............................. 5,500,000 5,385,105
(Hydroelectric Project Number 1):
9.48%, 7/1/2018 (Insured; MBIA) (a,b).................................. 13,200,000 13,381,500
7.15%, 7/1/2024........................................................ 5,455,000 5,855,670
Oakdale Public Finance Authority, Revenue (Center City Redevelopment Project)
7.90%, 7/1/2019............................................................ 250,000 261,368
Orange County:
Airport Revenue, Refunding (John Wayne Airport)
5.50%, 7/1/2013 (Insured; MBIA)........................................ 1,750,000 1,615,075
COP 7.625%, 6/1/2019 2,500,000 2,846,375
Special Tax (Community Facilities District Number 87) 7.80%, 8/15/2015..... 1,500,000 1,679,460
Otay Municipal Water District (Improvement District Number 27) 6.70%, 9/1/2022. 2,000,000 1,977,800
Port Oakland, Special Facility Revenue (Mitsui O.S.K. Lines Limited)
6.80%, 1/1/2019 (LOC; Industrial Bank of Japan) (c)........................ 3,000,000 3,054,930
Richmond Joint Powers Financing Authority, Revenue 7.25%, 5/15/2013............ 2,000,000 2,065,780
Riverside County Housing Authority, Revenue (Riverside Apartment Project)
7.875%, 11/1/2019.......................................................... 250,000 252,968
Sacramento County, Special Tax (Community Facilities District Number 1)
8.25%, 12/1/2020........................................................... 5,610,000 6,063,120
Sacramento Municipal Utility District, Electric Revenue:
9.73%, 8/15/2018 (Insured; FGIC) (a)....................................... 4,000,000 3,975,000
6.75%, 9/1/2019 (Insured; MBIA)............................................ 5,500,000 6,120,950
Refunding 5.75%, 11/15/2007 (Insured; MBIA)................................ 7,000,000 6,908,510
Sacramento Schools Insurance Authority, Revenue (Workers Compensation Program)
5.75%, 6/1/2003............................................................ 6,965,000 6,974,751
San Bernardino City, Health Care Systems Revenue (Sisters of Charity)
7%, 7/1/2021............................................................... 2,000,000 2,121,200
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
CALIFORNIA (CONTINUED)
San Francisco City and County, SFMR 7.45%, 1/1/2024............................ $ 465,000 $ 479,448
San Jose Financing Authority, Revenue (Convention Center Refunding Project)
6.40%, 9/1/2022............................................................ 8,500,000 8,433,360
San Marcos Public Facilities Authority, Revenue, Refunding
(Public Improvement-Civic Center) 6.15%, 8/1/2013.......................... 4,500,000 4,153,365
Simi Valley, Single Family Residential Mortgage Revenue 7.625%, 8/1/2022 (d)... 3,000,000 1,500,000
Southern California Home Finance Authority, SFMR:
7.625%, 10/1/2023 (Collateralized; GNMA)................................... 1,280,000 1,338,342
6.90%, 10/1/2024 (Collateralized: FNMA and GNMA)........................... 2,000,000 2,047,660
Southern California Public Power Authority, Power Project Revenue
(Multiple Projects) 6.75%, 7/1/2011........................................ 3,750,000 3,957,938
Stanislaus Waste-to-Energy Financing Agency,
Solid Waste Facility Revenue Certificates, Refunding
(Ogden Martin Systems, Inc. Project) 7.625%, 1/1/2010...................... 3,000,000 3,159,570
Tehachapi Unified School District, COP (Tompkins Elementary School Project)
7.80%, 2/1/2021............................................................ 1,000,000 1,158,380
Torrance, HR (Little Co. of Mary Hospital) 7.10%, 12/1/2015.................... 930,000 1,009,729
University of California, COP (UCLA Central Chiller/Cogeneration) 7%, 11/1/2018 3,400,000 3,782,432
Upland, HR, COP (San Antonio Community Hospital) 7.125%, 1/1/2011.............. 745,000 779,888
Vista, MFHR, Refunding (Vista Hacienda Project)
6.95%, 4/1/2017............................................................ 3,000,000 3,111,510
Waterford Public Financing Authority, Revenue 8.20%, 9/15/2020................. 3,700,000 3,768,413
Watsonville Mammoth Lakes, COP:
7.25%, 6/1/1998............................................................ 185,000 185,278
7.875%, 6/1/2011........................................................... 1,770,000 1,936,734
West Basin Municipal Water District, COP (Water Reclamation Project)
6.85%, 8/1/2016 (Insured; AMBAC)........................................... 2,000,000 2,213,420
Yolo County Housing Authority, Mortgage Revenue (Walnut Park Apartments)
7.20%, 8/1/2033 (Insured; FHA)............................................. 4,150,000 4,236,113
U. S. RELATED-9.5%
Commonwealth of Puerto Rico, Refunding 6.25%, 7/1/2010......................... 4,000,000 4,069,920
Puerto Rico Electric Power Authority, Power Revenue:
7.125%, Series N, 7/1/2014................................................. 1,500,000 1,615,425
7.125%, Series O, 7/1/2014................................................. 2,500,000 2,692,375
7%, 7/1/2021............................................................... 4,000,000 4,316,040
Puerto Rico Highway and Transportation Authority, Revenue 6.625%, 7/1/2018..... 4,500,000 4,660,020
Puerto Rico Public Buildings Authority, Revenue, Refunding 6.60%, 7/1/2004..... 3,480,000 3,713,125
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport Project)
8.10%, 10/1/2005........................................................... 4,135,000 4,566,735
Virgin Islands Territory (Hugo Insurance Claims Funds Program) 7.75%, 10/1/2006 1,845,000 2,041,751
Virgin Islands Water and Power Authority, Electric Systems Revenue
7.40%, 7/1/2011............................................................ 6,000,000 6,496,920
------------
TOTAL INVESTMENTS (cost $349,048,753).......................................... $359,540,277
============
</TABLE>
<TABLE>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation HR Hospital Revenue
COP Certificate of Participation LOC Letter of Credit
FGIC Financial Guaranty Insurance Corporation MBIA Municipal Bond Insurance Association
FHA Federal Housing Administration MFHR Multi_Family Housing Revenue
FNMA Federal National Mortgage Association SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- - --------- ------- ------------------ -------------------
<S> <C> <C> <C>
AAA Aaa AAA 22.6%
AA Aa AA 18.0
A A A 38.8
BBB Baa BBB 13.4
D N/A D .4
Not Rated Not Rated Not Rated 6.8
------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security - the interest rate is subject to change
periodically.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
At March 31, 1994, these securities amounted to $28,933,375 or 7.8% of
net assets.
(c) Secured by letters of credit.
(d) Non-income producing security; interest payments in default.
(e) Fitch currently provides creditworthiness information for a limited amount
of investments.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $349,048,753)-see statement...................................... $359,540,277
Receivable for investment securities sold.................................. 9,223,882
Interest receivable........................................................ 6,863,981
Prepaid expenses........................................................... 25,191
------------
375,653,331
LIABILITIES:
Due to The Dreyfus Corporation............................................. $ 207,530
Due to Custodian........................................................... 4,800,598
Payable for Common Stock Redeemed.......................................... 15,997
Accrued expenses and other liabilities..................................... 98,775 5,122,900
------------ ------------
NET ASSETS..................................................................... $370,530,431
============
REPRESENTED BY:
Paid-in capital............................................................ $357,441,697
Accumulated undistributed net realized gain on investments................. 2,597,210
Accumulated net unrealized appreciation on investments-Note 3.............. 10,491,524
------------
NET ASSETS at value, applicable to 28,102,800 outstanding shares of
Common Stock, equivalent to $13.18 per share
(500 million shares of $.001 par value authorized)......................... $370,530,431
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME............................................................ $ 13,625,469
EXPENSES:
Management fee-Note 2(a)............................................... $ 1,288,265
Shareholder servicing costs-Note 2(b).................................. 196,634
Custodian fees......................................................... 31,058
Professional fees...................................................... 21,103
Prospectus and shareholders' reports................................... 11,681
Directors' fees and expenses-Note 2(c)................................. 8,823
Registration fees...................................................... 6,542
Miscellaneous.......................................................... 27,270
------------
TOTAL EXPENSES..................................................... 1,591,376
------------
INVESTMENT INCOME-NET.............................................. 12,034,093
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3.................................... $ 2,607,984
Net unrealized (depreciation) on investments............................... (35,770,848)
------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS.................. (33,162,864)
------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS......................... $(21,128,771)
============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1994
1993 (UNAUDITED)
------------ ------------
<S> <C> <C>
OPERATIONS:
Investment income-net...................................................... $ 24,692,309 $ 12,034,093
Net realized gain on investments 2,427,493 2,607,984
Net unrealized appreciation (depreciation) on investments for the period... 32,104,152 (35,770,848)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........ 59,223,954 (21,128,771)
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net...................................................... (24,692,309) (12,034,093)
Net realized gain on investments........................................... (2,306,090) (1,957,211)
------------ ------------
TOTAL DIVIDENDS........................................................ (26,998,399) (13,991,304)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.............................................. 238,178,901 65,852,327
Dividends reinvested....................................................... 19,599,176 10,003,697
Cost of shares redeemed.................................................... (207,773,095) (126,634,187)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS...... 50,004,982 (50,778,163)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS............................ 82,230,537 (85,898,238)
NET ASSETS:
Beginning of period........................................................ 374,198,132 456,428,669
------------ ------------
End of period.............................................................. $456,428,669 $370,530,431
============ ============
SHARES SHARES
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold................................................................ 17,486,285 4,670,129
Shares issued for dividends reinvested..................................... 1,435,772 713,164
Shares redeemed............................................................ (15,218,045) (9,060,847)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING.......................... 3,704,012 (3,677,554)
============ ============
</TABLE>
See independent accountants' review report and notes to financial statements.
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net assets
and other supplemental data for each period indicated. This information
has been derived from information provided in the Fund's financial statements.
<TABLE>
YEAR ENDED SEPTEMBER 30, SIX MONTHS ENDED
--------------------------------- MARCH 31, 1994
PER SHARE DATA: 1990(1) 1991 1992 1993 (UNAUDITED)
------ ------ ------ ------ -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $12.50 $12.43 $12.89 $13.33 $14.36
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net................................... .90 .90 .85 .82 .39
Net realized and unrealized gain (loss) on investments.. (.08) .47 .44 1.11 (1.12)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.................... .82 1.37 1.29 1.93 (.73)
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net.................... (.89) (.91) (.85) (.82) (.39)
Dividends from net realized gain on investments......... -- -- -- (.08) (.06)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS................................. (.89) (.91) (.85) (.90) (.45)
------ ------ ------ ------ ------
Net asset value, end of period.......................... $12.43 $12.89 $13.33 $14.36 $13.18
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN..................................... 6.93%(2) 11.35% 10.31% 15.04% (10.39%)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. -- .21% .37% .64% .74%(2)
Ratio of net investment income to average net assets.... 7.35%(2) 7.06% 6.47% 5.96% 5.60%(2)
Decrease reflected in the above expense ratios due to
undertakings by the Manager......................... 1.05%(2) .62% .39% .11% --
Portfolio Turnover Rate................................. 9.94%(3) 2.81% 23.97% 30.20% 6.74%(3)
Net Assets, end of period (000's Omitted)............... $98,427 $271,656 $374,198 $456,429 $370,530
- - -------------------------
(1) From October 10, 1989 (commencement of operations) to September 30, 1990.
(2) Annualized.
(3) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a non-diversified open-end management investment company.
Dreyfus Service Corporation ("Distributor") acts as the exclusive
distributor of the Fund's shares, which are sold to the public without a
sales charge. The Distributor is a wholly-owned subsidiary of The Dreyfus
Corporation ("Manager").
(A) PORTFOLIO VALUATION: The Fund's investments (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 in the
judgment of the Service are readily available and are representative of
the bid side of the market 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, when
appropriate, 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.
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. 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 provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from all, or substantially all, Federal income
taxes.
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 .60 of 1%
of the average daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings
and extraordinary expenses, exceed the expense limitation of any state
having jurisdiction over the Fund. The most stringent state expense
limitation applicable to the Fund presently requires reimbursement of
expenses in any full fiscal year that such expenses (exclusive of certain
expenses as described above) exceed 2 1/2% of the first $30 million, 2%
of the next $70 million and 1 1/2% of the excess over $100 million of the
average value of the Fund's net assets in accordance with California "blue
sky" regulations. There was no expense reimbursement for the six months
ended March 31, 1994.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses the Distributor an amount not to exceed an annual rate of .25
of 1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. During the
six months ended March 31, 1994, the Fund was charged an aggregate of
$80,270 pursuant to the Shareholder Services Plan.
(C) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each director
who is not an "affiliated person" receives an annual fee of $2,500 and an
attendance fee of $250 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory approvals
and approvals of the stockholders of the Manager and of Mellon. The merger
is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
NOTE 3-SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $55,400,462 and
$112,682,745, respectively, for the six months ended March 31, 1994, and
consisted entirely of municipal bonds and short-term municipal
investments.
At March 31, 1994, accumulated net unrealized appreciation on
investments was $10,491,524, consisting of $15,181,819 gross
unrealized appreciation and $4,690,295 gross unrealized depreciation.
At March 31, 1994, 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).
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
REVIEW REPORT OF ERNST & YOUNG, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
GENERAL CALIFORNIA MUNICIPAL BOND FUND, INC.
We have reviewed the accompanying statement of assets and liabilities
of General California Municipal Bond Fund, Inc., including the statement of
investments, as of March 31, 1994, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended March 31, 1994. These financial statements and
financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by
the American Institute of Certified Public Accountants. A review of
interim financial information consists principally of applying analytical
procedures to financial data, and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope than
an audit conducted in accordance with generally accepted auditing
standards, which will be performed for the full year with the objective of
expressing an opinion regarding the financial statements and financial
highlights taken as a whole. Accordingly, we do not express such an
opinion.
Based on our review, we are not aware of any material modifications
that should be made to the interim financial statements and financial
highlights referred to above for them to be in conformity with generally
accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year
ended September 30, 1993 and financial highlights for each of the four
years in the period ended September 30, 1993 and in our report dated
November 1, 1993, we expressed an unqualified opinion on such statement
of changes in net assets and financial highlights.
(ERNST & YOUNG SIGNATURE LOGO)
New York, New York
May 4, 1994
(Dreyfus Logo)
General California
Municipal
Bond Fund, Inc.
Semi-Annual
Report
March 31, 1994
(Dreyfus Lion "D" Logo)
GENERAL CALIFORNIA
MUNICIPAL BOND FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 131SA943
