LETTER TO SHAREHOLDERS
Dear Shareholder:
Even though the U.S. dollar rebounded modestly in recent weeks, the
weakness of the dollar in relation to the German mark and Japanese yen has
preoccupied the international markets this year.
There is mounting concern with respect to whether the U.S.
authorities intend to let the value of the dollar slip, and whether monetary
policy will remain lax for the foreseeable future.
Currency notwithstanding, the U.S. bond market has taken the
international lead, rallying sharply in the past few months. There have been
clear indications that the U.S. economy has begun to slow, perhaps at a pace
that might achieve the hoped-for soft landing. This has encouraged
fixed-income investors, as shown by the fact that the thirty-year benchmark
Treasury bond has managed to stay below the critical 7% yield level for some
time. It is generally recognized that the Federal Reserve Board, after
tightening credit in seven steps over a year's time, has reached the end of
that policy approach for now, and may in coming months lean toward somewhat
easier credit, as they began to do in July.
The European bond markets so far this year have followed a path
similar to U.S. Treasuries. Performance among European markets, however, has
been variable. Uncertainty preceding the elections unsettled the French
market, which rebounded sharply once President Chirac's election and cabinet
were confirmed. The U.K., which has continued to enjoy excellent economic
fundamentals, suffered from fears of political uncertainty, exacerbated by an
appalling performance of the ruling Conservative Party in recent local
elections and by tension about the Party's leadership. British gilts, too,
have begun to recover on signs that the economy continues to slow. Italy made
a sharp recovery from its depressed levels of late January and Denmark
continued its steady rally.
Operating in this environment, Dreyfus Global Bond Fund produced a
total return of 12.34% for the six-month fiscal period ended May 31, 1995.*
This compares with 16.48% for the Salomon Brothers World Government Bond
Index, which the Fund uses as a benchmark.**
At the beginning of the calendar year, the Fund underwent major
restructuring. We had grown extremely concerned by the state of Italian
politics and Italian public debt. Although the portfolio held less in Italian
bonds compared to the Salomon Brothers World Government Bond Index, we decided
to liquidate all lira-denominated securities. Since the situation in Spain
seemed only moderately more encouraging, we disposed of all peseta holdings as
well. The proceeds were reinvested in Deutschmark-denominated German
government bonds. A major redemption in Denmark required us to dispose of the
holdings in that country.
The Fund continues to maintain an overweighted position in the U.S.
dollar, largely at the expense of the yen. Duration of portfolio holdings was
just over six years as of May of this year. Our main interest rate
concentration remains in core Europe, which continued to perform well.
As of May 31, the Fund had no currency exposure to any emerging
markets, but it did hold a small amount in U.S. dollar-and
sterling-denominated Mexican debt. Both credits appear to us to have firm
backing, but have been affected by market fears. We took the opportunity to
reduce the exposure relatively early, but some damage to performance was
inflicted nonetheless.
At present, Dreyfus Global Bond Fund is conservatively invested,
with principal holdings in the U.S. dollar obligations, the Deutschmark and
German bonds, but underweight the Yen compared to the Salomon Brothers
benchmark. We are concentrating on investments in conservative interest rate
markets and mainstream currencies.
Sincerely,
(Theodora Zemek Signature Logo)
Theodora Zemek
Portfolio Manager
Dreyfus Global Bond Fund, Inc.
M & G Investment Management Ltd.
July 6, 1995
London, U.K.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** SOURE: LIPPER ANALYTICAL SERVICES, INC. Unlike the Fund, which can invest in
both corporate and government bonds, the Salomon Brothers World Government
Bond Index is a market-capitalization weighted index consisting of debt
issues of 14 government bond markets.
<TABLE>
<CAPTION>
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF INVESTMENTS MAY 31, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-95.8% AMOUNT VALUE
----------------- ------------------
<S> <C> <C>
BANKING-10.1% Bayerische Landesbank Girozentrale,
Bonds, 6%, 2004............................. $ 615,711 (a) $ 580,616
Societe Generale,
Floating Rate Notes, 6 3/4%, 2008........... 500,000 (b) 500,600
Sudwestdeutsche Landesbank Capital Markets,
Bonds (Gtd. by Sudwestdeutsche Landesbank
Girozentrale), 6 1/4%, 2003................. 601,557 (a) 576,292
-------------
1,657,508
-------------
CHEMICALS-8.6% Eastman Kodak,
Notes, 7 7/8%, 1997......................... 450,000 460,710
Hoechst,
Bearer Bonds, 6%, 2000...................... 500,000 484,700
Imperial Chemical Industries,
Bonds, 9 3/4%, 2005......................... 436,975 (c) 469,475
-------------
1,414,885
------------
FINANCIAL SERVICES-6.5% Credit Local De France,
Bonds, 6%, 2001............................. 888,626 (d) 1,060,797
-------------
MACHINERY AND
ENGINEERING-2.9% Fuji Heavy Industries,
Bonds (Gtd. by The Industrial Bank of Japan),
8 3/4%, 1999................................ 450,000 478,125
-------------
MISCELLANEOUS-11.2% B.A.T. Capital,
Gtd. Bonds (Gtd. by B.A.T. Industries p.l.c.),
6 1/2%, 2003................................ 500,000 477,825
Petroleos Mexicanos,
Gtd. Notes, 9%, 2003........................ 516,425 (c) 407,666
Treasury Corp. of Victoria,
Bonds (Gtd. by The Government of Victoria),
7 1/4%, 2003................................ 509,425 (e) 450,230
Ville de Montreal,
Notes, 6 3/8%, 2001......................... 547,046 (f) 496,116
-------------
1,831,837
-------------
TELECOMMUNICATIONS-2.9% Cable and Wireless,
Bonds, 6 1/2%, 2003......................... 500,000 480,325
-------------
UTILITIES-ELECTRIC-5.7% Chubu Electric Power,
Bonds, 6 1/8%, 2001......................... 592,417 (d) 699,052
Tokyo Electric Power,
Notes, 10 1/2%, 2001........................ 218,818 (f) 241,247
-------------
940,299
-------------
FOREIGN/
GOVERNMENTAL-47.9% Asfinag,
Bonds (Gtd. by the Republic of Austria),
6%, 2000.................................... 947,867 (d) 1,107,820
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1995 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
------------ ------------
FOREIGN/
GOVERNMENTAL (CONTINUED) Bundesrepublik Deutschland:
7 1/8%, 2002......................... $ 583,864 (a) $ 605,467
7 3/8%, 2005......................... 707,714 (a) 741,967
Comunidad Andalucia,
8%, 2000............................. 350,000 367,080
France O.A.T.:
Coupon Strips:
Zero Coupon, 2018..................... 2,014,504 (g) 304,996
Zero Coupon, 2022..................... 1,959,750 (h) 195,583
Deb., 6 3/4%, 2004................... 402,901 (g) 385,536
Ireland Treasury Securities,
6 1/4%, 2004......................... 462,983 (i) 401,869
Kingdom of Spain Government Bonds,
4 5/8%, 2004......................... 592,417 (d) 664,188
Netherlands Government Bonds,
5 3/4%, 2004......................... 1,201,543 (j) 1,137,140
Republic of Italy,
Notes, 5 1/8%, 2003.................. 533,175 (d) 596,890
Republic of South Africa, Deb.,
9 5/8%, 1999......................... 450,000 455,625
United Kingdom Treasury Securities,
8 1/2%, 2005......................... 640,367 (c) 668,607
United Mexican States (Aztec),
Collateralized Floating Rate Bonds,
8 1/8%, 2008......................... 250,000 (b) 212,500
-------------
7,845,268
-------------
TOTAL INVESTMENTS (cost $14,238,671)........................................ 95.8% $15,709,044
=========== =============
CASH AND RECEIVABLES (NET).................................................. 4.2% $ 688,956
=========== =============
NET ASSETS.................................................................. 100.0% $16,398,000
=========== =============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Denominated in German Deutsche Marks.
(b) Variable rate security-interest rate subject to periodic change.
(c) Denominated in British Pounds.
(d) Denominated in Japanese Yen.
(e) Denominated in Australian Dollars.
(f) Denominated in Canadian Dollars.
(g) Denominated in French Francs.
(h) Denominated in European Currency Units.
(i) Denominated in Irish Pounds.
(j) Denominated in Dutch Guilders.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $14,238,671)-see statement...................................... $15,709,044
Cash.................................................................... 86,030
Interest receivable..................................................... 483,675
Net unrealized appreciation on forward currency exchange
contracts-Note 3(a)................................................... 155,772
Receivable for investment securities sold............................... 2,057
Prepaid expenses........................................................ 53,425
Due from The Dreyfus Corporation........................................ 6,861
-------------
16,496,864
LIABILITIES:
Due to Distributor...................................................... $ 6,861
Payable for shares of Common Stock redeemed............................. 46,541
Accrued expenses and other liabilities.................................. 45,462 98,864
----------- -------------
NET ASSETS ................................................................ $16,398,000
=============
REPRESENTED BY:
Paid-in capital......................................................... $15,584,882
Accumulated undistributed investment income-net......................... 103,271
Accumulated net realized (loss) on investments and
foreign currency transactions......................................... (916,298)
Accumulated net unrealized appreciation on investments
and foreign currency transactions-Note 3(b)........................... 1,626,145
-------------
NET ASSETS at value applicable to 1,259,349 outstanding shares of
Common Stock, equivalent to $13.02 per share
(300 million shares of $.001 par value authorized)...................... $16,398,000
=============
See independent accountants' review report and notes to financial statements.
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME (net of $1,715 foreign taxes withheld at source)........ $ 634,396
EXPENSES:
Management fee-Note 2(a).............................................. $ 54,337
Shareholder servicing costs-Note 2(b,c)............................... 39,829
Professional fees..................................................... 12,699
Organization expenses................................................. 11,689
Directors' fees and expenses-Note 2(d)................................ 9,849
Prospectus and shareholders' reports-Note 2(b)........................ 9,784
Registration fees..................................................... 7,536
Custodian fees........................................................ 4,692
Miscellaneous......................................................... 2,292
----------
152,707
Less-expense reimbursement from Manager due to
undertakings-Note 2(a)............................................ 106,425
----------
TOTAL EXPENSES.................................................. 46,282
------------
INVESTMENT INCOME-NET........................................... 588,114
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3(a)............................ $ (67,831)
Net realized (loss) on forward currency
exchange contracts-Note 3(a).......................................... (539,742)
----------
NET REALIZED (LOSS)................................................... (607,573)
Net unrealized appreciation on investments and forward currency
exchange contracts.................................................... 1,855,808
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 1,248,235
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,836,349
============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
NOVEMBER 30, MAY 31, 1995
1994* (UNAUDITED)
--------------- -------------------
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 683,264 $ 588,114
Net realized (loss) on investments..................................... (308,725) (607,573)
Net unrealized appreciation (depreciation) on investments for the period (229,663) 1,855,808
------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. 144,876 1,836,349
------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net.................................................. (578,468) (589,639)
------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 16,832,717 1,686,571
Dividends reinvested................................................... 514,095 484,973
Cost of shares redeemed................................................ (1,737,727) (2,295,747)
------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.... 15,609,085 (124,203)
------------- ---------------
TOTAL INCREASE IN NET ASSETS..................................... 15,175,493 1,122,507
NET ASSETS:
Beginning of period.................................................... 100,000 15,275,493
------------- ---------------
End of period (including undistributed investment income-net: $104,796 in 1994
and $103,271 in 1995)................................................ $15,275,493 $16,398,000
============= ===============
SHARES SHARES
------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 1,361,664 140,270
Shares issued for dividends reinvested................................. 42,403 39,912
Shares redeemed........................................................ (143,165) (189,735)
-------------- ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING........................ 1,260,902 (9,553)
=============== ==============
*From March 18, 1994 (commencement of operations) to November 30, 1994.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GLOBAL 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 SIX MONTHS ENDED
NOVEMBER 30, MAY 31, 1995
PER SHARE DATA: 1994(1) (UNAUDITED)
--------------- -------------------
<S> <C> <C>
Net asset value, beginning of period................................... $12.50 $12.04
------- -------
INVESTMENT OPERATIONS:
Investment income-net.................................................. .65 .46
Net realized and unrealized gain (loss) on investments
and foreign currency contracts....................................... (.54) .99
------- -------
TOTAL FROM INVESTMENT OPERATIONS..................................... .11 1.45
------- -------
DISTRIBUTIONS;
Dividends from investment income-net................................... (.57) (.47)
------- -------
Net asset value, end of period......................................... $12.04 $13.02
======= =======
TOTAL INVESTMENT RETURN.................................................... 1.29%(2) 24.75%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................ -- .60%(2)
Ratio of net investment income to average net assets................... 7.83%(2) 7.58%(2)
Decrease reflected in above expense ratios due to undertakings by Dreyfus 2.49%(2) 1.37%(2)
Portfolio Turnover Rate................................................ 4.16%(3) 17.50%(3)
Net Assets, end of period (000's Omitted).............................. $15,275 $16,398
(1) From March 18, 1994 (commencement of operations) to November 30, 1994.
(2) Annualized.
(3) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS GLOBAL 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-diversifed open-end management investment company. The Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. M&G
Investment Management Limited ("M&G") serves as the Fund's sub-investment
adviser. Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares which are sold to the public without a sales
load. The Distributor, located at One Exchange Place, Boston, Massachusetts
02109, is a wholly-owned subsidiary of FDI Distribution Services, Inc., a
provider of mutual fund administration services, which in turn is a
wholly-owned subsidiary of FDI Holdings, Inc., the parent company of which is
Boston Institutional Group, Inc. Dreyfus is a direct subsidiary of Mellon
Bank, N.A.
As of May 31, 1995, Major Trading Corporation, a subsidiary of Mellon
Bank Investments Corporation, held 444,080 of the Fund's outstanding shares.
Mellon Bank Investments Corporation is a subsidiary of Mellon Bank.
(A) PORTFOLIO VALUATION: Investments in securities are valued each
business day 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. Securities 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. Investments denominated in foreign
currencies are translated to U.S. dollars at the prevailing rates of
exchange.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized on securities transactions, the
difference between the amounts of interest and foreign withholding taxes
recorded on the Fund's books, and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized foreign exchange gains and losses
arise from changes in the value of assets and liabilities other than
investments in securities at fiscal year end, resulting from changes in
exchange rates.
(C) 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, including, where applicable, amortization of discount on investments,
is recognized on the accrual basis.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid monthly.
Dividends from net realized capital gain, if any, 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, it is the policy of the Fund not to distribute such gain.
On May 31, 1995, the Board of Directors declared a cash dividend of $.073
per share from undistributed investment income-net, payable on June 1, 1995
(ex-dividend date), to shareholders of record as of the close of business on
May 31, 1995.
DREYFUS GLOBAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $241,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1994. If not
applied, the carryover expires in fiscal 2002.
NOTE 2-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSACT
IONS WITH AFFILIATES:
(A) Pursuant to a Management Agreement with Dreyfus, the management fee
is computed at the annual rate of .70 of 1% of the average daily value of the
Fund's net assets and is payable monthly. Dreyfus and M&G have agreed that
if in any full fiscal year the Fund's aggregate expenses, exclusive of
interest, taxes, brokerage and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund, Dreyfus and M&G
will bear the excess expense in proportion to their management fee and
sub-advisory fee to the extent required by state law. 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 distribution expenses and 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.
However, Dreyfus had undertaken from December 1, 1994 through January 2,
1995, to assume all expenses of the Fund, and thereafter, through March 17,
1995 to reduce other expenses paid by the Fund, to the extent that the Fund's
aggregate expenses (excluding certain expenses as described above) exceeded
specified annual percentages of the Fund's average daily net assets. The
Manager had undertaken from March 18, 1995 through June 30, 1995, to waive
receipt of the management, service and distribution fees. The expense
reimbursement, pursuant to the undertakings, amounted to $106,425 for the six
months ended May 31, 1995.
The Manager has currently undertaken through September 30, 1995, or until
such time as the net assets of the Fund exceed $50 million, regardless of
whether they remain at that level, to waive receipt of the management and
distribution fees.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and M&G,
the sub-advisory fee is computed at the annual rate of .28 of 1% of the
average daily value of the Fund's net assets and is payable monthly by
Dreyfus.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule
12b-1 under the Act, the Fund (a) reimburses the Distributor for payments to
certain Service Agents for distributing the Fund's shares and (b) pays the
Manager, Dreyfus Service Corporation and any affiliate of either of them for
advertising and marketing relating to the Fund, at an aggregate annual rate
of .25 of 1% of the value of the Fund's average daily net assets. The
distributor may pay one or more Service Agents in respect of distribution
services. The Distributor determines the amounts, if any, to be paid to
Service Agents under the Plan and the basis on which such payments are made.
The fees payable under the Plan are payable without regard to actual expenses
incurred. The Plan also separately provides for the Fund to bear the costs of
DREYFUS GLOBAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
preparing, printing and distributing certain of the Fund's prospectuses and
statements of additional information and costs associated with implementing
and operating the Plan, not to exceed the greater of $100,000 or .005 of 1%
of the Fund's average daily net assets for any full fiscal year. During the
six months ended May 31, 1995, $27,453 was charged to the Fund pursuant to
the Plan.
(C) Pursuant to the Fund's Shareholder Services Plan, the Fund pays the
Distributor 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 May 31, 1995, $19,406 was charged to
the Fund by the Distributor pursuant to the Shareholder Services Plan.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the six months ended May 31, 1995 amounted to $2,617,927 and
$2,821,599, respectively.
In addition, the following summarizes open forward currency exchange
contracts at May 31, 1995:
<TABLE>
<CAPTION>
U.S. DOLLAR UNREALIZED
FORWARD CURRENCY SALE CONTRACT PROCEEDS VALUE APPRECIATION
- ------------------------------- -------------- -------------- --------------
<S> <C> <C> <C>
Dutch Guilders, expiring 10/30/95............................... $ 958,995 $ 922,862 $ 36,133
German Deutsche Marks, expiring 10/30/95........................ 623,392 598,861 24,531
Japanese Yen, expiring 10/30/95................................. 2,799,418 2,704,310 95,108
--------------
$155,772
==============
</TABLE>
The Fund enters into forward exchange currency contracts in order to
hedge its exposure to changes in foreign currency exchange rates on its
foreign portfolio holdings. When executing forward currency exchange
contracts, the Fund is obligated to buy or sell a foreign currency at a
specified rate on a certain date in the future. With respect to sales of
forward currency exchange contracts, the Fund would incur a loss if the value
of the contract increases between the date the forward contract is opened and
the date the forward contract is closed. The Fund realizes a gain if the
value of the contract decreases between those dates. With respect to purchase
of forward currency exchange contracts, the Fund would incur a loss if the
value of the contract decreases between the date the forward contract is
opened and the date the forward contract is closed. The Fund realizes a gain
if the value of the contract increases between those dates. The Fund is also
exposed to credit risk associated with counter party nonperformance on these
forward currency exchange contracts which is typically limited to the
unrealized gains on such contracts that are recognized in the statement of
assets and liabilities.
(B) At May 31, 1995, accumulated net unrealized appreciation on
investments was $1,626,145, consisting of $1,922,586 gross unrealized
appreciation and $296,441 gross unrealized depreciation.
At May 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).
DREYFUS GLOBAL BOND FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS GLOBAL BOND FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Global Bond Fund, Inc., including the statement of investments, as of
May 31, 1995, and the related statements of operations and changes in net
assets and financial highlights for the six month period ended May 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 and financial
highlights from March 18, 1994 (commencement of operations) to November 30,
1994 and in our report dated January 9, 1995, we expressed an unqualified
opinion on such statement of changes in net assets and financial highlights.
(Ernest & Young LLP SIGNATURE LOGO)
New York, New York
June 30, 1995
DREYFUS GLOBAL BOND FUND, INC.
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISOR
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISOR
M & G Investment Management Limited
Three Quays, Tower Hill
London, EC3R 6BQ, England
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. 098SA955
Global Bond
Fund, Inc.
Semi-Annual
Report
May 31, 1995
(Dreyfus Logo)
