General California Municipal
Bond Fund, Inc.
SEMIANNUAL REPORT March 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
14 Financial Highlights
15 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
General California
Municipal Bond Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for General California
Municipal Bond Fund, Inc., covering the six-month period from October 1, 1999
through March 31, 2000. Inside, you'll find valuable information about how the
fund was managed during the reporting period, including a discussion with the
fund's portfolio manager, Paul Disdier.
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 125 basis points since late June 1999, before the current reporting period
began. While higher interest rates led to erosion of municipal bond prices
during the first half of the reporting period, the tax-exempt bond market showed
renewed signs of strength during the first quarter 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. This is especially true 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 California Municipal Bond Fund, Inc.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
2
DISCUSSION OF FUND PERFORMANCE
Paul Disdier, Portfolio Manager
How did General California Municipal Bond Fund, Inc. perform during the
period?
The fund produced a 1.73% total return over the six-month period ended March 31,
2000.(1) This compares to a 1.39% total return for the Lipper California
Municipal Debt Funds category average for the same period.(2)
We attribute the fund's performance to a rising interest-rate environment, which
caused most municipal bond prices to decline, and to the fund's duration
management strategy, which was relatively long in an attempt to maintain
competitive yields. However, the negative returns produced by longer dated and
higher yielding bonds during the fourth quarter of 1999 were largely offset
during the market rally that began in the first quarter of 2000.
What is the fund's investment approach?
Our goal is to seek as high a level of federal and California tax-exempt income
as is practical from a diversified portfolio of long-term municipal bonds from
California issuers.
To achieve this objective, we have constructed a portfolio designed to provide
consistently high income streams. We find such income opportunities through
rigorous analyses of individual bonds' structures, paying particularly close
attention to each bond' s yield, maturity and early redemption features. As a
result, the portfolio is composed primarily of high-yielding revenue bonds
backed by the income generated from housing projects, toll roads, transportation
facilities, hospitals, special taxes and other sources throughout California.
Over time, high-yielding bonds within the portfolio have matured or been
redeemed by their issuers. We have generally attempted to replace these bonds
with securities that offer higher than average income payments. This strategy is
designed to help maximize income. We also look
The Fund 3
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
to upgrade the portfolio with newly issued bonds that, in our opinion, have
better structural or income characteristics than existing holdings. When such
opportunities arise, we will usually sell bonds that are close to redemption or
maturity, a strategy intended to protect the fund' s net asset value. In
addition, we conduct extensive credit analysis of our holdings in an attempt to
avoid potential defaults on interest and principal payments.
What other factors influenced the fund's performance?
Although the fund's performance was hurt by a difficult investment environment
during most of 1999, the first quarter of 2000 provided better market conditions
and a market rally.
When the reporting period began on October 1, 1999, investors had become
concerned that strong economic growth might rekindle long-dormant inflationary
pressures. In fact, in an attempt to forestall a reacceleration of inflation,
the Federal Reserve Board 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 125 basis points since last summer.
Nationally, municipal bond prices also fell during 1999 because of adverse
supply-and-demand influences. For a variety of reasons, institutional investors
participated less in the tax-exempt market. Despite strong demand from
individual investors, the absence of institutional buyers helped reduce overall
demand in the national market and drove municipal bond prices down. In
California, however, robust demand from individuals more than offset the absence
of institutional investors. As a result, the effects of 1999's market decline
were less severe in California than in most other states.
In addition, during the first quarter of 2000, issuance of municipal bonds
nationally declined approximately 40% compared to the same period one year ago.
This supply reduction, combined with robust
4
demand from individual investors, helped support a rebound of municipal bond
prices, including bonds from California issuers, and especially among longer
term bonds.
What is the fund's current strategy?
We have continued to follow our strategy of attempting to maximize the income
produced by a diversified portfolio of municipal bonds from California issuers.
To that end, we have been attempting to create an effective balance between
" performance bonds," including zero-coupon municipals and discount bonds, and
more defensive securities that may help cushion the effects of rising interest
rates on the overall portfolio.
We have recently sold some of our intermediate-term holdings in favor of longer
term bonds that we expect to provide better performance during a market rally.
We have also attempted to take advantage of the growing disparity between yields
of high quality municipal bonds and lower rated securities. Accordingly, we have
purchased some lower rated issues that we believe offer highly competitive
yields and good credit quality. These higher yielding securities provided highly
competitive returns during the recent rebound. Our current strategy is in
contrast to our security selection approach earlier in the reporting period,
when yield differences were relatively narrow and we focused on the greater
liquidity provided by high quality bonds from well-known issuers.
April 12, 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-CALIFORNIA 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
March 31, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.6% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CALIFORNIA--97.4%
ABAG Finance Authority, Nonprofit Corporations:
MFHR (Central Park Apartments) 5.60%, 7/1/2038 5,000,000 4,707,300
MFHR (Civic Center Drive Apartments)
5.875%, 9/1/2032 (Insured; FSA) 1,285,000 1,255,072
Alameda County, COP (Various Financing Projects)
6%, 9/1/2021 (Insured; MBIA, LOC; The Fuji Bank) 4,750,000 4,903,852
Allan Hancock Joint Community College District, COP
7.625%, 10/1/2005 1,055,000 1,114,692
Anaheim Public Financing Authority:
Tax Allocation Revenue
6.45%, 12/28/2018 (Insured; MBIA) 6,000,000 6,415,740
Lease Revenue (Public Improvements Project)
Zero Coupon, 9/1/2019 (Insured; FSA) 6,310,000 2,053,842
Beaumont Unified School District, COP
(Capital Improvement Project)
7.70%, 1/1/2021 (Prerefunded 1/1/2001) 1,100,000 (a) 1,150,908
California:
4.50%, 4/1/2013 (Insured; MBIA) 3,600,000 3,336,696
4.50%, 10/1/2019 8,500,000 7,277,275
California Educational Facilities Authority, Revenue:
(Chapman College)
7.50%, 1/1/2018 (Prerefunded 1/1/2001) 1,760,000 (a) 1,840,080
(College & University Projects) 5.625%, 7/1/2023 1,275,000 1,138,511
California Health Facilities Financing Authority
Revenue:
(Cedar-Sinai Medical Center):
6.125%, 12/1/2030 2,000,000 1,988,840
6.25%, 12/1/2034 4,250,000 4,275,840
(HELP Group)
7%, 8/1/2021 (Insured; California Health Facilities
Construction Loan Program) 1,800,000 1,899,594
(Walden House) 6.85%, 3/1/2022 3,225,000 3,381,865
California Housing Finance Agency:
MFHR 6.15%, 8/1/2022 (Insured; AMBAC) 3,850,000 3,854,581
SFMR:
6%, 8/1/2016 (Insured; MBIA) 2,000,000 2,054,960
6.375%, 8/1/2027 2,250,000 2,276,550
7.60%, 8/1/2030 780,000 786,973
California Pollution Control Financing Authority, PCR
8.536%, 6/1/2014 4,500,000 (b,c) 5,205,150
California Statewide Communities Development Authority:
COP:
Barton Memorial Hospital Health Facility 6.50%, 12/1/2009 1,600,000 1,668,384
6
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
California Statewide Communities Development Authority:
COP (continued):
Catholic Healthcare West 6.50%, 7/1/2020 3,500,000 3,495,625
(The Internext Group) 5.375%, 4/1/2030 5,000,000 4,023,400
Special Facilities LR (United Airlines, Inc.):
6.798%, 10/1/2033 4,285,000 (b,c) 3,259,514
5.625%, 10/1/2034 4,750,000 4,134,447
6.649%, 10/1/2034 1,445,000 (b,c) 1,066,988
Capistrano Unified School District (Ladera)
5.75%, 9/1/2029 4,000,000 3,484,360
Castaic Lake Water Agency,COP, Revenue
(Water System Improvement Project)
Zero Coupon, 8/1/2027 (Insured; AMBAC) 10,000,000 2,004,100
Commerce Joint Powers Financing Authority, Revenue
8%, 3/1/2022 (Prerefunded 3/1/2001) 2,325,000 (a) 2,453,177
Contra Costa County, Mortgage Revenue (Cedar Pointe)
6.15%, 9/1/2025 (Insured; FHA) 2,955,000 2,964,101
Contra Costa County Public Finance Authority, Tax
Allocation Revenue (Pleasant Hill ) 5.45%, 8/1/2028 3,000,000 2,669,460
Del Mar Race Track Authority, Revenue 6.20%, 8/15/2011 2,000,000 2,040,080
East Bay Municipal Utility District, Wastewater
Treatment Systems Revenue
5%, 6/1/2016 (Insured; FGIC) 2,480,000 2,362,175
Fontana Public Financing Authority,
Tax Allocation Revenue
(North Fontana Redevelopment Project) 7.25%, 9/1/2020 2,000,000 2,041,380
Fontana Redevelopment Agency, Tax Allocation Revenue
(Jurupa Hills Redevelopment Project):
5.50%, 10/1/2019 3,500,000 3,164,525
5.50%, 10/1/2027 4,000,000 3,497,480
Foothill/Eastern Transportation Corridor Agency,
Toll Road Revenue:
Zero Coupon, 1/1/2015 8,800,000 3,927,440
5%, 1/1/2016 (Insured MBIA) 5,000,000 4,776,100
Zero Coupon, 1/1/2028 24,000,000 4,754,640
Inglewood, HR (Daniel Freeman Hospital)
6.75%, 5/1/2013 (Prerefunded 5/1/2001) 2,000,000 (a) 2,093,680
Loma Linda, HR (Loma Linda University Medical
Center Project) 6%, 12/1/2023 2,900,000 2,361,093
Los Angeles Department of Water and Power,
Waterworks Revenue:
4.50%, 10/15/2024 5,000,000 4,129,200
4.25%, 10/15/2030 (Insured; FGIC) 10,000,000 7,799,500
The Fund 7
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Newhall Elementary and Castaic Union School Districts,
COP (School Improvement Project)
7.70%, 3/1/2011 (Prerefunded 3/1/2001) 2,695,000 (a) 2,783,665
Northern California Power Agency, Public Power Revenue
(Hydroelectric Project Number 1)
6.30%, 7/1/2018 (Insured; MBIA) 20,400,000 22,701,528
Pomona Redevelopment Agency, Tax Allocation
(West Holt Avenue Redevelopment) 5.50%, 5/1/2032 3,000,000 2,594,340
Port Oakland, Special Facilities Revenue
(Mitsui O.S.K. Lines Limited)
6.80%, 1/1/2019 (LOC; Industrial Bank of Japan) 3,000,000 3,030,330
Sacramento City Financing Authority, LR
5%, 11/1/2014 5,000,000 4,841,350
Sacramento City Unified School District
6%, 7/1/2025 5,395,000 5,565,968
Sacramento County (Community Facilities District No. 1)
5.70%, 12/1/2020 2,250,000 2,010,802
San Bernardino, Health Care Systems Revenue
(Sisters of Charity)
7%, 7/1/2021 (Prerefunded 7/1/2001) 2,000,000 (a) 2,107,940
San Diego County, COP (Downtown Courthouse)
4.50%, 5/1/2023 (Insured; AMBAC) 1,500,000 1,251,060
San Francisco City and County Airports Commission,
International Airport Revenue 5.90%, 5/1/2026 9,385,000 9,348,492
San Joaquin Hills Transportation Corridor Agency,
Toll Road Revenue Zero Coupon, 1/1/2010 5,000,000 3,058,550
San Marcos Public Facilities Authority, Revenue
(Public Improvement-Civic Center) 6.20%, 8/1/2022 3,000,000 2,953,020
Santa Anna Finance Authority (South Harbor Boulevard)
5%, 9/1/2019 3,580,000 3,313,541
Santa Clara Redevelopment Agency, Tax Allocation
(Bayshore North Project) 5.25%, 6/1/2018 3,365,000 3,259,474
Santa Cruz County Redevelopment Agency, Tax Allocation
(Subordinated-Live Oak/Soquel Community Improvement)
5.625%, 9/1/2022 1,835,000 1,764,885
Simi Valley, Single Family Residential Mortgage Revenue
7.625%, 8/1/2022 997,866 (d) 169,637
Southern California Home Finance Authority, SFMR
6.90%, 10/1/2024 (Collateralized: FNMA and GNMA) 1,320,000 1,357,013
Stockton, Health Facilities Revenue
(Dameron Hospital Association) 5.70%, 12/1/2014 1,000,000 904,390
8
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Tehachapi Unified School District, COP
(Tompkins Elementary School Project)
7.80%, 2/1/2021 (Prerefunded 2/1/2001) 960,000 (a) 1,000,906
Turlock, COP, Health Facilities Revenue
(Emanuel Medical Center, Inc.) 5.75%, 10/15/2023 6,000,000 5,189,880
West Covina Redevelopment Agency, Special Tax
(Community Facilities District--Fashion Plaza):
6%, 9/1/2017 6,000,000 6,269,880
6%, 9/1/2022 8,325,000 8,622,286
Yolo County Housing Authority, Mortgage Revenue
(Walnut Park Apartments)
7.20%, 8/1/2033 (Insured; FHA) 4,150,000 4,341,274
U. S. RELATED--1.2%
Puerto Rico Commonwealth, Public Improvement
5.25%, 7/1/2017 (Insured; FSA) 3,000,000 2,951,280
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $236,728,868) 98.6% 236,480,661
CASH AND RECEIVABLES (NET) 1.4% 3,379,323
NET ASSETS 100.0% 239,859,984
The Fund 9
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Summary of Abbreviations
<TABLE>
<CAPTION>
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation GNMA Government National Mortgage
Association
COP Certificate of Participation HR Hospital Revenue
FGIC Financial Guaranty Insurance LOC Letter of Credit
Company
FHA Federal Housing Administration LR Lease Revenue
FNMA Federal National Mortgage MFHR Multi-Family Housing Revenue
Association
FSA Financial Security Assurance PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
</TABLE>
Summary of Combined Ratings (Unaudited)
<TABLE>
<CAPTION>
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 41.6
AA Aa AA 12.9
A A A 17.7
BBB Baa BBB 18.1
BB Ba BB 1.5
D N/A D .1
Not Rated (e) Not Rated (e) Not Rated (e) 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) SECURITIES 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,
2000, THESE SECURITIES AMOUNTED TO$9,531,652 OR 4.0% OF NET ASSETS.
(D) NON-INCOME PRODUCING SECURITY; INTEREST PAYMENTS IN DEFAULT.
(E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
RATED SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
10
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 236,728,868 236,480,661
Interest receivable 3,770,549
Prepaid expenses 5,450
240,256,660
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 126,496
Cash overdraft due to Custodian 230,388
Accrued expenses 39,792
396,676
--------------------------------------------------------------------------------
NET ASSETS ($) 239,859,984
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 245,072,345
Accumulated net realized gain (loss) on investments (4,964,154)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (248,207)
--------------------------------------------------------------------------------
NET ASSETS ($) 239,859,984
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(500 million shares of $.001 par value Common Stock authorized) 19,288,636
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
12.44
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 11
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 7,292,880
EXPENSES:
Management fee--Note 3(a) 724,231
Shareholder servicing costs--Note 3(b) 138,663
Professional fees 16,457
Custodian fees 14,921
Directors' fees and expenses--Note 3(c) 14,612
Registration fees 5,712
Prospectus and shareholders' reports 4,192
Loan commitment fees--Note 2 2,016
Miscellaneous 9,556
TOTAL EXPENSES 930,360
INVESTMENT INCOME--NET 6,362,520
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (4,972,545)
Net unrealized appreciation (depreciation) on investments 2,187,050
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (2,785,495)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,577,025
SEE NOTES TO FINANCIAL STATEMENTS.
12
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 2000 Year Ended
(Unaudited) September 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 6,362,520 13,781,187
Net realized gain (loss) on investments (4,972,545) 1,692,790
Net unrealized appreciation (depreciation)
on investments 2,187,050 (25,647,206)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 3,577,025 (10,173,229)
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (6,362,520) (13,781,187)
Net realized gain on investments (1,076,586) (3,728,567)
TOTAL DIVIDENDS (7,439,106) (17,509,754)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 18,289,349 28,900,088
Dividends reinvested 5,166,126 12,441,976
Cost of shares redeemed (38,319,585) (51,083,362)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (14,864,110) (9,741,298)
TOTAL INCREASE (DECREASE) IN NET ASSETS (18,726,191) (37,424,281)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 258,586,175 296,010,456
END OF PERIOD 239,859,984 258,586,175
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,508,285 2,150,109
Shares issued for dividends reinvested 423,355 929,452
Shares redeemed (3,149,257) (3,847,560)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,217,617) (767,999)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund 13
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
March 31, 2000 Year Ended September 30,
------------------------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 12.61 13.91 13.51 13.35 13.30 12.90
Investment Operations:
Investment income--net .32 .65 .67 .69 .70 .73
Net realized and unrealized
gain (loss) on investments (.12) (1.13) .48 .41 .19 .48
Total from
Investment Operations .20 (.48) 1.15 1.10 .89 1.21
Distributions:
Dividends from investment
income--net (.32) (.65) (.68) (.70) (.68) (.73)
Dividends from net realized
gain on investments (.05) (.17) (.07) (.24) (.16) (.08)
Total Distributions (.37) (.82) (.75) (.94) (.84) (.81)
Net asset value,
end of period 12.44 12.61 13.91 13.51 13.35 13.30
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 3.45(a) (3.62) 8.76 8.56 6.85 9.82
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .77(a) .78 .77 .76 .76 .76
Ratio of net investment income
to average net assets 5.26(a) 4.85 4.91 5.15 5.25 5.66
Portfolio Turnover Rate 34.29(b) 51.80 63.60 90.03 164.93 83.31
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 239,860 258,586 296,010 291,545 296,798 317,835
(A) ANNUALIZED.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
14
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
General California 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 and State of California personal
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.
The fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Directors. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the fund 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
The Fund 15
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
price on the securities exchange on which such securities are primarily traded
or at the last sales price on the national securities market on each business
day. Investments not listed on an exchange or the national securities market, or
securities for which there were no transactions, are valued at the average of
the most recent bid and asked prices. Bid price is used when no asked price is
available.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the fund receives net earnings credits based on available cash
balances left on deposit.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
"Code"). To the 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.
16
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 March
31, 2000, the fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management 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.
(b) Under the Shareholder Services Plan, the fund reimburses DSC an amount not
to exceed an annual rate of .25 of 1% of the value of the fund's average daily
net assets for certain allocated expenses of providing personal services and/or
maintaining shareholder accounts. The services provided may include personal
services relating to shareholder accounts, such as answering shareholder
inquiries regarding the fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. During the period
ended March 31, 2000, the fund was charged $81,000 pursuant to the Shareholder
Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended March 31, 2000, the fund was charged $41,769 pursuant to the transfer
agency agreement.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $2,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
The Fund 17
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(d) A .10% redemption fee is charged and retained by the fund on shares redeemed
within fifteen days following the date of issuance, including on redemptions
made through the use of the fund's exchange privilege. During the period ended
March 31, 2000, redemption fees retained by the fund amounted to $38.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended March 31, 2000, amounted to
$80,257,221 and $87,115,005, respectively.
At March 31, 2000, accumulated net unrealized depreciation on investments was
$248,207, consisting of $8,018,861 gross unrealized appreciation and $8,267,068
gross unrealized depreciation.
At March 31, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
18
<PAGE>
The Fund 19
NOTES
For More Information
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
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 131SA003
