Letter to Shareholders
Dear Shareholder:
The volatile market experience of last year was painful. The losses
registered by fixed-income securities during the calendar year were
unprecedented in recent history. This turmoil resulted from the series of
short-term interest rate hikes precipitated by the Federal Reserve Board's
concern over the prospects for inflation. From January 1994 to date, the Fed
has pushed short rates 300 basis points higher through a series of seven rate
hikes. The resulting decline in the value of municipal bonds during 1994 was
intensified by other forces as well.
The 1993 Federal tax law governing the taxation of market discount gains
as ordinary income (as opposed to capital gains) accentuated the loss in
value of municipals more than would have been the case under previous law.
Furthermore, late in the calendar year, many investors sold bond mutual fund
shares as well as individual bonds. This was occurring on the heels of the
Orange County, California municipal bankruptcy which resulted from leveraged
speculation on interest rates. Municipal bond investors became concerned as
the Orange County story unfolded, and these worries intensified amidst
speculation about similar problems elsewhere. These factors combined to
accentuate an already tumultuous situation. Fortunately, the sharp decline in
the issuance of new municipal debt during the year helped mitigate the
market's decline.
Late in the calendar year, the municipal bond market began to find
support as market fears regarding the economy and rising inflation moderated.
What has ensued is a strong market rally thus far in 1995: Long-term rates
have declined by over 70 basis points, thereby recouping a large portion of
the previous year's losses. In the case of the General California Municipal
Bond Fund, for the semi-annual period ended March 31, 1995, the Fund's share
price rose by over 2% which is indicative of the recent strong rebound in
prices. In spite of the volatility of prices, the Fund continues to
distribute a comparatively high level of tax-free dividends. During the past
six months ended March 31, 1995, shareholders have received tax-free income
dividends of approximately $.367 per share. This equates to a 5.58%
annualized tax-free distribution rate per share, based on the March 31, 1995
closing net asset value of $13.08, adjusted for capital gain distributions. A
California resident who is also in the maximum Federal income tax bracket
would have had to earn nearly 10.38% from a comparable taxable investment to
achieve the same return!*
In our opinion, late last fall there existed enough preliminary evidence
pointing to a slowing of the economy. Rather than sticking with the
consensus, we elected to take a more positive posture on the market with a
view that it would be better to be early rather than too late. The
portfolio's comparatively long duration, a limiting factor to performance
during 1994, has been a positive force during the most recent market phase.
As I mentioned previously, Orange County's bankruptcy last December was a
major factor influencing the tax exempt market last year. We were fortunate
to have sidestepped the fallout. When stories first surfaced last fall about
the County's finances, we eliminated from the portfolio any bonds that we
felt could provide undue market risk. Of course, the entire California market
was affected to some degree when the rumors became fact. Fortunately, the
California market has stabilized, and its strong performance since then has
benefited the State's credits.
We have always been strong advocates of maintaining a disciplined,
long-term approach to investing. This Fund has been structured to maximize
income and investment performance over the long term;
abandoning such a strategy while attempting to time the market during periods
of weakness can be detrimental should one's timing not be precise. Certainly,
the market's behavior during the past year underscores this fact. As
mentioned previously, the strong rebound in prices since last November has
benefited those investors who elected to stay the course.
Going forward, we are optimistic about the 1995 municipal bond market,
and therefore have adjusted the portfolio's holdings accordingly. We believe
that the weakness exhibited in certain key areas of the economy such as
housing and automobile sales will soon extend to other sectors as well.
Furthering our optimism is the dearth of new supply issuance in the tax
exempt market. We believe the sharp curtailment of bond issuance experienced
last year will continue. If the economy continues to slow, municipal
investments should perform better than most other fixed-income alternatives.
We anticipate that this strategy will continue to provide comparatively
strong results over the long term. As always, we will continue to manage your
Fund to help provide the best returns available.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 10, 1995
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, 1995 (UNAUDITED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS-97.9% Amount Value
_______ _______
<S> <C> <C>
California-95.6%
ABAG Finance Corp., COP (ABAG XXIV) 6.90%, 4/1/2012......................... $ 3,500,000 $ 3,587,605
Allan Hancock Joint Community College District, COP, Refunding 7.625%, 10/1/2005 1,055,000 1,135,686
Anaheim Public Financing Authority, Tax Allocation Revenue 6.31%, 12/28/2018 6,000,000 6,236,220
Beaumont Unified School District, COP (Capital Improvement Project) 7.70%, 1/1/2021 1,100,000 1,143,945
Berkeley, HR (Alta Bates Project) 7.65%, 12/1/2015 (Prerefunded 8/1/2000) (a) 445,000 510,014
California:
6.125%, 10/1/2011 (Insured; FGIC)....................................... 8,000,000 8,247,920
Refunding 5.15%, 10/1/2019 (Insured; FGIC).............................. 4,000,000 3,557,080
California Department of Water Resources, Revenue (Central Valley Project)
6.385%, 12/1/2026 (b)................................................... 12,600,000 12,649,266
California Educational Facilities Authority, Revenue:
(Chapman College) 7.50%, 1/1/2018....................................... 1,760,000 1,842,685
(Refunding-Pooled College and University Financings) 6.125%, 6/1/2009... 3,000,000 2,998,260
(University of San Francisco) 6.30%, 10/1/2007.......................... 2,470,000 2,609,086
California Health Facilities Authority, Revenue (Pacific Presbyterian
Hospital)
7.60%, 6/1/2015......................................................... 910,000 982,445
California Health Facilities Financing Authority, Revenue:
(Childrens' Hospital of Los Angeles) 7.125%, 6/1/2021 (Prerefunded 6/1/2001) (a) 2,000,000 2,262,720
(Help Group) 7%, 8/1/2021
(Insured; California Health Facilities Construction Loan Program)..... 1,800,000 1,866,348
(Kaiser Permanente) 5.60%, 5/1/2033..................................... 3,450,000 3,139,258
(Pomona Valley Hospital Medical Center) 7.375%, 1/1/2014................ 750,000 779,482
(Refunding - Health Dimensions) 7%, 5/1/2020............................ 3,000,000 2,796,180
(Walden House) 6.85%, 3/1/2022.......................................... 3,225,000 3,295,853
California Housing Finance Agency, Home Mortgage Revenue:
Zero Coupon, 8/1/2023................................................... 6,380,000 719,153
7.50%, 8/1/2029......................................................... 1,570,000 1,636,207
7.65%, 8/1/2029......................................................... 900,000 943,416
7.60%, 8/1/2030......................................................... 1,855,000 1,948,047
7.70%, 8/1/2030......................................................... 1,540,000 1,621,389
California Pollution Control Financing Authority, SWDR
(North County Recycling Center) 6.75%, 7/1/2011
(LOC; Union Bank of Switzerland) (c).................................... 3,500,000 3,613,610
California Public Works Board, LR:
(Department of Correction - Madera State Prison) 6%, 6/1/2010........... 3,000,000 3,035,490
(Department of Correction - Susanville State Prison)
5.375%, 6/1/2018 (Insured; MBIA)...................................... 11,000,000 10,118,680
(Library and Courts Annex Building) 6%, 5/1/2013........................ 4,500,000 4,359,915
(University of California Projects):
5.55%, 6/1/2010....................................................... 3,195,000 3,046,720
5.50%, 12/1/2018...................................................... 5,000,000 4,468,650
Refunding 5.50%, 6/1/2014............................................. 5,000,000 4,563,150
California Statewide Communities Development Authority, COP,
Health Facilities Revenue, Refunding (Barton Memorial Hospital)
6.50%, 12/1/2009 (LOC; Banque Nationale De Paris) (c)................... 1,600,000 1,643,104
General California Municipal Bond Fund, Inc.
Statement of Investments (continued) MARCH 31, 1995 (UNAUDITED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount Value
_______ _______
California (continued)
California Statewide Communities Development Corp., COP (Pacific Homes)
5.90%, 4/1/2009......................................................... $ 7,000,000 $ 7,013,090
Campbell, COP, Refunding (Civic Center Project) 6.90%, 10/1/2018
(Prerefunded 10/1/2001) (a)............................................. 3,760,000 4,200,183
Chico Public Finance Authority, Revenue
(Chico Municipal Airport and Central Chico Redevelopment Project) 7.40%, 4/1/2021 2,410,000 2,513,244
Commerce Joint Powers Financing Authority, Revenue, Multiple Project Loans
8%, 3/1/2022............................................................ 2,470,000 2,611,803
Compton, COP, Refunding 7.50%, 8/1/2005 (LOC; Mitsui Trust and Banking) (c). 2,680,000 2,833,082
Dry Creek Joint School District, Special Tax
(Community Facilities District Number 1) 7.25%, 9/1/2011................ 2,500,000 2,710,250
East Bay Municipal Utility District, Water Systems Revenue
7.60%, 6/1/2020 (Insured; MBIA, Prerefunded 6/1/2000) (a)............... 3,000,000 3,406,320
Folsom Public Financing Authority, Local Agency Revenue 7.70%, 10/1/2020.... 1,200,000 1,243,536
Fontana Public Financing Authority, Tax Allocation Revenue
(North Fontana Redevelopment Project) 7.25%, 9/1/2020................... 2,000,000 2,085,800
Fresno Unified School District, COP (Project Phase VI) 7.20%, 5/1/2011...... 4,250,000 4,468,450
Glendora Public Finance Authority, Tax Allocation Revenue
7.625%, 9/1/2010 (Prerefunded 9/1/1999) (a)............................. 1,145,000 1,288,423
Hollister Redevelopment Agency, Tax Allocation
(Hollister Community Development Project) 7.55%, 10/1/2013.............. 1,000,000 1,045,830
Inglewood, HR (Daniel Freeman Hospital) 6.75%, 5/1/2013..................... 2,000,000 2,044,760
La Mirada Redevelopment Agency (Tax Allocation-Industrial Commercial
Redevelopment)
6.80%, 8/15/2021........................................................ 3,950,000 4,015,807
Lake Elsinore Public Financing Authority, Local Agency Revenue 8%, 10/1/2020 3,390,000 3,512,311
Los Alamitos Union Free School District, Special Tax
(Community Facilities District Number 1) 7.15%, 8/15/2021............... 2,000,000 2,023,560
Los Angeles, Revenue:
Harbor Department 6.60%, 8/1/2015....................................... 4,240,000 4,379,581
Wastewater Systems 6.70%, 12/1/2021 (Insured; MBIA, Prerefunded 12/1/2000) (a) 3,750,000 4,154,850
Los Angeles Building Authority, LR, Refunding
(Department of General Services):
5.375%, 5/1/2006...................................................... 4,060,000 3,942,707
5.60%, 5/1/2008....................................................... 8,000,000 7,839,840
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue,
Refunding 5.50%, 7/1/2013............................................... 3,250,000 3,023,247
Los Angeles Department of Water and Power:
Electric Plant Revenue:
4.75%, 10/15/2020..................................................... 7,560,000 6,105,758
7.10%, 1/15/2031...................................................... 2,750,000 3,022,745
Refunding:
5.875%, 9/1/2030.................................................. 5,000,000 4,802,250
5.40%, 11/15/2031 (Insured; FGIC)................................. 3,000,000 2,681,640
Waterworks Revenue 7.625%, 8/1/2027..................................... 2,000,000 2,166,600
General California Municipal Bond Fund, Inc.
Statement of Investments (continued) MARCH 31, 1995 (UNAUDITED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount Value
_______ _______
California (continued)
Mountain View, Shoreline Regional Park Community, Tax Allocation 5.75%, 8/1/2018 $ 5,000,000 $ 4,801,200
Newhall Elementary and Castaic Union School District, COP
(School Improvement Project) 7.70%, 3/1/2011............................ 2,695,000 2,812,637
Northern California Power Agency, Public Power Revenue, Refunding
(Hydroelectric Project Number 1):
6.30%, 7/1/2018 (Insured; MBIA) (b)................................... 20,400,000 21,185,400
7.15%, 7/1/2024....................................................... 5,410,000 5,568,946
Orange County:
Airport Revenue, Refunding (John Wayne Airport) 5.50%, 7/1/2013 (Insured; MBIA) 1,750,000 1,602,772
COP (Juvenile Justice Center) 7.625%, 6/1/2019 (Prerefunded 6/1/1999) (a) 2,500,000 2,801,600
Special Tax (Community Facilities District Number 87)
7.80%, 8/15/2015 (Prerefunded 8/15/2000) (a).......................... 1,500,000 1,732,455
Otay Municipal Water District (Improvement District Number 27) 6.70%, 9/1/2022 2,000,000 1,989,900
Palm Desert (Assessment District Number 94-1) 7.625%, 9/2/2019.............. 1,980,000 2,015,660
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 3,028,230
Richmond Joint Powers Financing Authority, Revenue 7.25%, 5/15/2013......... 2,000,000 2,081,900
Sacramento County, Special Tax (Community Facilities District Number 1)
8.25%, 12/1/2020........................................................ 5,610,000 5,970,555
Sacramento Municipal Utility District, Electric Revenue
6.30%, 8/1/2018 (Insured; FGIC)......................................... 8,000,000 8,112,000
Sacramento Schools Insurance Authority, Revenue (Workers Compensation
Program)
5.75%, 6/1/2003......................................................... 6,910,000 7,039,977
San Bernardino, Health Care Systems Revenue (Sisters of Charity) 7%, 7/1/2021 2,000,000 2,092,660
San Marcos Public Facilities Authority, Revenue, Refunding
(Public Improvement-Civic Center) 6.15%, 8/1/2013....................... 4,500,000 4,249,485
Simi Valley, Single Family Residential Mortgage Revenue 7.625%, 8/1/2022 (d) 3,000,000 360,000
Southern California Home Finance Authority, SFMR
6.90%, 10/1/2024 (Collateralized: FNMA and GNMA)........................ 1,665,000 1,711,237
Southern California Public Power Authority, Power Project Revenue:
(Multiple Projects) 6.75%, 7/1/2011..................................... 3,750,000 3,988,613
(Refunding - Mead Adelanto Project) 5%, 7/1/2017 (Insured; AMBAC)....... 5,000,000 4,378,700
Tehachapi Unified School District, COP (Tompkins Elementary School Project)
7.80%, 2/1/2021 (Prerefunded 2/1/2001) (a).............................. 1,000,000 1,161,680
University of California, COP, Revenue, Refunding
(Multiple Purpose Projects) 5%, 9/1/2023 (Insured; AMBAC)............... 6,000,000 5,157,000
Upland, HR, COP (San Antonio Community Hospital) 7.125%, 1/1/2011........... 745,000 767,991
Waterford Public Financing Authority, Revenue 8.20%, 9/15/2020.............. 3,700,000 3,933,507
Watsonville Mammoth Lakes, COP 7.875%, 6/1/2011............................. 1,770,000 1,893,263
Yolo County Housing Authority, Mortgage Revenue (Walnut Park Apartments)
7.20%, 8/1/2033 (Insured; FHA).......................................... 4,150,000 4,289,897
General California Municipal Bond Fund, Inc.
Statement of Investments (continued) MARCH 31, 1995 (UNAUDITED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount Value
_______ _______
U. S. Related-2.3%
Puerto Rico Electric Power Authority, Power Revenue 7.125%, 7/1/2014........ $ 540,000 $ 572,476
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport
Project)
8.10%, 10/1/2005........................................................ 4,135,000 4,493,215
Virgin Islands Territory (Hugo Insurance Claims Funds Program) 7.75%, 10/1/2006 1,760,000 1,890,592
-------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $294,055,832)................... $302,176,799
==========
SHORT-TERM MUNICIPAL INVESTMENTS-2.1%
California Pollution Control Financing Authority, SWDR, VRDN
(Shell Oil Co. - Martinez Project) 4.65% (e) (cost $6,600,000).......... $ 6,600,000 $ 6,600,000
==========
TOTAL INVESTMENTS-100.0%
(cost $300,655,832)..................................................... $308,776,799
============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation LR Lease Revenue
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FHA Federal Housing Administration Insurance Corporation
FNMA Federal National Mortgage Association SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association SWDR Solid Waste Disposal Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
Fitch (f) or Moody's or Standard & Poor's Percentage of Value
- ----- ----- ---------- ------------
<S> <C> <C> <C>
AAA Aaa AAA 31.2%
AA Aa AA 16.2
A A A 30.4
BBB Baa BBB 11.3
D N/A D .1
F-1+, F-1 MIG1, VMIG1 & P1 SP1 & A1 2.1
Not Rated (g) Not Rated (g) Not Rated (g) 8.7
____
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(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) 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,
1995, these securities amounted to $33,834,666 or 10.6% of net assets.
(c) Secured by letters of credit.
(d) Non-income producing security; interest payments in default.
(e) Securities payable on demand. The interest rate, which is subject to
change, is based on bank prime rates or an index of market interest
rates.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's, have been determined by the Fund's Manager to be of comparable
quality to those rated securities in which the Fund may invest.
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, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $300,655,832)-see statement..................................... $308,776,799
Cash.................................................................... 95,527
Interest receivable..................................................... 5,600,106
Receivable for investment securities sold............................... 4,634,488
Prepaid expenses........................................................ 11,807
-------
319,118,727
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $167,590
Accrued expenses........................................................ 166,680 334,270
----- --------
NET ASSETS ................................................................ $318,784,457
==========
REPRESENTED BY:
Paid-in capital......................................................... $310,957,431
Accumulated net realized (loss) on investments.......................... (293,941)
Accumulated net unrealized appreciation on investments-Note 3........... 8,120,967
-------
NET ASSETS at value applicable to 24,366,586 outstanding shares of
Common Stock, equivalent to $13.08 per share
(500 million shares of $.001 par value authorized)...................... $318,784,457
=========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
General California Municipal Bond Fund, Inc.
Statement of Operations SIX MONTHS ENDED MARCH 31, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
Interest Income......................................................... $10,307,124
Expenses:
Management fee-Note 2(a).............................................. $ 936,391
Shareholder servicing costs-Note 2(b)................................. 185,069
Custodian fees........................................................ 24,872
Professional fees..................................................... 24,695
Directors' fees and expenses-Note 2(c)................................ 10,335
Prospectus and shareholders' reports.................................. 9,858
Registration fees..................................................... 6,800
Miscellaneous......................................................... 15,229
-------
Total Expenses.................................................... 1,213,249
-------
INVESTMENT INCOME-NET............................................. 9,093,875
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (293,331)
Net unrealized appreciation on investments.............................. 5,404,161
------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 5,110,830
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $14,204,705
=========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
General California Municipal Bond Fund, Inc.
Statement of Changes in Net Assets
Year Ended Six Months Ended
September 30, March 31, 1995
1994 (Unaudited)
-------- ----------
<S> <C> <C>
OPERATIONS:
Investment income_net............................................... $ 22,427,244 $ 9,093,875
Net realized gain (loss) on investments.............................. 2,108,962 (293,331)
Net unrealized appreciation (depreciation) on investments for the period (43,545,566) 5,404,161
-------- --------
Net Increase (Decrease) In Net Assets Resulting From Operations.... (19,009,360) 14,204,705
-------- --------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net............................................... (22,427,244) (9,093,875)
Net realized gain on investments..................................... (1,957,211) (2,098,798)
-------- --------
Total Dividends.................................................... (24,384,455) (11,192,673)
-------- --------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 143,167,610 52,095,275
Dividends reinvested................................................. 17,051,843 7,527,605
Cost of shares reedeemed............................................. (226,190,833) (90,913,929)
-------- --------
(Decrease) In Net Assets From Capital Stock Transactions........... (65,971,380) (31,291,049)
-------- --------
Total (Decrease) In Net Assets................................. (109,365,195) (28,279,017)
NET ASSETS:
Beginning of period.................................................. 456,428,669 347,063,474
-------- --------
End of period........................................................ $ 347,063,474 $ 318,784,457
========= =========
Shares Shares
-------- --------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 10,562,987 4,095,934
Shares issued for dividends reinvested............................... 1,251,353 599,251
Shares redeemed...................................................... (16,686,997) (7,236,296)
-------- --------
Net (Decrease) In Shares Outstanding............................... (4,872,657) (2,541,111)
========== =========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
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 the Fund's financial statements.
Year Ended September 30, Six Months Ended
_________________________- March 31, 1995
PER SHARE DATA: 1990(1) 1991 1992 1993 1994 (Unaudited)
---- ---- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $12.50 $12.43 $12.89 $13.33 $14.36 $12.90
---- ---- ---- ---- ---- ----
Investment Operations:
Investment income_net................ .90 .90 .85 .82 .78 .37
Net realized and unrealized gain (loss)
on investments...................... (.08) .47 .44 1.11 (1.40) .26
---- ---- ---- ---- ---- ----
Total from Investment Operations.... .82 1.37 1.29 1.93 (.62) .63
---- ---- ---- ---- ---- ----
Distributions:
Dividends from investment income_net. (.89) (.91) (.85) (.82) (.78) (.37)
Dividends from net realized gain
on investments...................... -- -- -- (.08) (.06) (.08)
---- ---- ---- ---- ---- ----
Total Distributions................. (.89) (.91) (.85) (.90) (.84) (.45)
---- ---- ---- ---- ---- ----
Net asset value, end of period........ $12.43 $12.89 $13.33 $14.36 $12.90 $13.08
===== ===== ===== ===== ====== ====
TOTAL INVESTMENT RETURN................... 6.93%(2) 11.35% 10.31% 15.04% (4.43%) 10.21%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets -- .21% .37% .64% .76% .78%(2)
Ratio of net investment income to
average net assets.................. 7.35%(2) 7.06% 6.47% 5.96% 5.72% 5.83%(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% 29.74% 39.49%(3)
Net Assets, end of period (000's Omitted) $98,427 $271,656 $374,198 $456,429 $347,063 $318,784
(1) From October 10, 1989 (commencement of operations) to September 30, 1990.
(2) Annualized.
(3) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
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. Premier Mutual
Fund Services, Inc. (the "Distributor") acts as the exclusive distributor of
the Fund's shares, which are sold to the public without a sales charge. The
Distributor, located at One Exchange Place, Boston, Massachusetts 02109, is a
wholly-owned subsidiary of Institutional Administration Services, Inc., a
provider of mutual fund administration services, the parent company of which
is Boston Institutional Group, Inc. The Dreyfus Corporation ("Manager")
serves as the Fund's investment advisor. The Manager is a direct subsidiary
of Mellon Bank, N.A.
(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 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 (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.
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 applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
General California Municipal Bond Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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
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, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation 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, 1995, the Fund was charged an aggregate of $83,359 pursuant
to the Shareholder Services Plan.
(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 $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $225,210,418 and $243,939,872, respectively, for the six months
ended March 31, 1995, and consisted entirely of long-term and short-term
municipal investments.
At March 31, 1995, accumulated net unrealized appreciation on investments
was $8,120,967, consisting of $11,797,911 gross unrealized appreciation and
$3,676,944 gross unrealized depreciation.
At March 31, 1995, 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 LLP, 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, 1995, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended March 31, 1995. 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, 1994 and financial highlights for the five years in the period
ended September 30, 1994 and in our report dated November 3, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young signature logo]
New York, New York
May 9, 1995
[Dreyfus lion "d" logo]
GENERAL CALIFORNIA
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
90 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. 131SA953
[Dreyfus logo]
General California
Municipal
Bond Fund, Inc.
Semi-Annual
Report
March 31, 1995
