DREYFUS GLOBAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure to report that the Dreyfus Global Bond Fund provided a
total return of 16.47% for the fiscal year that ended November 30, 1995.*
This compares with a total return of 18.13% for the Salomon Brothers World
Government Bond Index, which the Fund uses as a benchmark.**
ECONOMIC ENVIRONMENT
The last 12 months have seen a marked change of opinion in the
international capital markets. Whereas received opinion once maintained that
U.S. growth remained strong and that commodity-induced inflationary pressures
had begun to materialize, it became evident in the course of the summer that
the U.S. economy was on a weakening trend. The Federal Reserve Board eased
monetary policy in July, trimming the Federal Funds rate by .25% to 5.75%.
This hint that short-term interest rates had reached a cyclical peak was
welcomed by the long end of the bond market, but wrought havoc with the
already weak currency. The Dollar plummeted to record lows, particularly
against the Japanese Yen.
As the summer progressed and virulent trade disagreements with the
Japanese appeared to reach some semblance of a resolution, it appeared as if
both the American and Japanese authorities had agreed to embark upon a
program of currency intervention. Sudden and repeated sales of Yen against
Dollars initially took the markets by surprise, and the U.S. currency
recovered from a low of 81.13 Yen to the Dollar on April 19 to 101.56 Yen to
the Dollar on November 30. In earlier months of the fiscal period, the Dollar
performed well against many European currencies, but slipped back during the
last two months as investors began to believe that U.S. interest rates would
fall faster than European ones. The U.S. currency put in a disappointing
performance, depreciating 7% against the German Mark during the period under
review.
MARKET ENVIRONMENT
World bond markets, however, took their lead from U.S. Treasuries and
performed extremely well. Evidence of sharp economic slowdowns and stable to
declining inflation rates in the more developed nations tempted investors
back into longer-dated bonds in virtually every sector. Yet relative
performance rates varied greatly, following no particular pattern. Italy, a
profligate borrower with intense political problems, performed relatively
poorly, whereas Canada and Belgium, both with similar problems, performed
relatively well. Sweden enjoyed a boost from the election of a new Prime
Minister, who, it was thought, would further the country's chances of being
one of the first to participate in the European Monetary Union (EMU). Yet
Germany on the other hand lagged on the grounds that EMU would eventually
mean the softening of the German Mark. There may be sound reasons for these
apparent anomalies in Europe - the prospects for monetary union, in which
Germany may be forced to carry the tab for its weaker neighbors, means that
the bond markets of the more "responsible" nations are discounting inflation
for a unified Europe.
Under the circumstances, it may be difficult for the cautious investor to
believe that global bond yields can decline any further. Yet there are still
grounds to believe this could occur. After the dramatic shocks of the 1970s
and 1980s, the peak in the inflationary cycle may be much lower in the
current decade. Governments have adopted more stringent inflation and
monetary targets, and have made concerted moves to give central banks greater
independence. And in many countries, there have been serious attempts to
reduce public sector deficits. Flexible labor markets, cost competition from
developing countries and globally integrated financial systems have all
helped to minimize cost pressures. With so-called "real" bond yields (nominal
yields adjusted for inflation) close to their historical highs, it seems to
us likely that bond markets still have some room for improvement.
The key component in global bond market performance is currency. The U.S.
dollar has begun to show some signs of life, and it seems likely that its
fortunes may be on an improving trend, albeit at a slower pace than had been
anticipated originally. The Fund continues to maintain its moderate Dollar
bias, particularly at the expense of the Yen. It also maintains an overweight
position in longer-dated European bonds, where the room for improvement
currently seems the greatest, given the sharp slowdowns that are making
themselves manifest in the key European economies.
PORTFOLIO OVERVIEW
During the past six months, we made very few changes in the makeup of the
portfolio with regard to types of bonds as well as country allocation.
Foreign/Government bonds still constitute the largest category, accounting
for nearly half the portfolio, concentrated primarily in Western Europe.
Looking at the major geographical areas, your Fund has been underweight and
short of duration relative to the Salomon Brothers Index in both the Dollar
block and Japan. We have been overweight and long of duration in Europe. This
stance has suffered marginally by being underweight in the face of a strong
market in the U.S. but has benefited from the underexposure to Japan. Within
Europe, we have been overweight in the core markets of Germany, France, the
UK and the Netherlands. In this region, higher returns could have been made
from the higher yield markets of Sweden and Italy, but we continue to believe
they represent too high a risk/reward ratio.
Currency hedging on approximately three quarters of the exposure is
undertaken from both Japanese Yen and Dutch Gilders into U.S. Dollars. Around
one quarter of German Marks are also hedged. This position is taken with a
view to the U.S. Dollar base of the majority of investors. Over the year,
each of these positions has been profitable and the Yen position in
particular has protected the Fund from the considerable gyrations of the
currency markets.
It is a pleasure to serve your investment needs. We thank you for your
continued confidence in the management of Dreyfus Global Bond Fund.
Sincerely,
(Theodora Zemek signature logo)
Theodora Zemek
Portfolio Manager
Dreyfus Global Bond Fund, Inc.
M & G Investment Management, Ltd.
December 17, 1995
London, U.K.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: 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.
DREYFUS GLOBAL BOND FUND, INC. NOVEMBER 30, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS GLOBAL BOND
FUND, INC. AND THE SALOMON BROTHERS WORLD GOVERNMENT BOND INDEX
Dollars
$12,056
Salomon Brothers
World Government
Bond Index*
$11,753
Dreyfus Global
Bond Fund
*Source: Lipper Analytical Services, Inc.
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (3/18/94)
NOVEMBER 30, 1995 TO NOVEMBER 30, 1995
_____________________ ____________________________
16.47% 9.92%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Global Bond
Fund, Inc. on 3/18/94 (Inception Date) to a $10,000 investment made in the
Salomon Brothers World Government Bond Index on that date. For comparative
purposes, the value of the Index on 3/31/94 is used as the beginning value on
3/18/94. All dividends and capital gain distributions are reinvested.
The Fund's performance shown in the line graph takes into account all
applicable fees and expenses. The Salomon Brothers World Government Bond
Index is a fixed-income index and is a market-capitalization weighted
benchmark that tracks the performance and covers debt issues of 14 government
bond markets. The Index measures the total rate-of-return performance for
government bond markets with a remaining maturity of at least one year and
does not take into account charges, fees and other expenses. Further
information relating to Fund performance, including expense reimbursements,
if applicable, is contained in the Condensed Financial Information section of
the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF INVESTMENTS NOVEMBER 30, 1995
PRINCIPAL
BONDS AND NOTES-94.8% AMOUNT VALUE
_____________ ______________
<S> <C> <C>
BANKING-10.2% Bayerische Landesbank Girozentrale,
Bonds, 6%, 2004.................................. $ 601,244 (a) $ 587,415
Societe Generale,
Floating Rate Notes, 6 3/8%, 2008............... 500,000 (b) 502,125
Sudwestdeutsche Landesbank Capital Markets,
Bonds (Gtd. by Sudwestdeutsche Landesbank
Girozentrale), 6 1/4%, 2003...................... 587,422 (a) 588,890
______________
1,678,430
______________
CHEMICALS-8.6% Eastman Kodak,
Notes, 7 7/8%, 1997.............................. 450,000 461,531
Hoechst,
Bearer Bonds, 6%, 2000........................... 500,000 500,938
Imperial Chemical Industries,
Bonds, 9 3/4%, 2005.............................. 420,750 (c) 459,932
______________
1,422,401
______________
FINANCIAL SERVICES-5.4% Credit Local De France,
Bonds, 6%, 2001.................................. 735,294 (d) 888,786
______________
MACHINERY AND
ENGINEERING-2.9% Fuji Heavy Industries,
Bonds (Gtd. by The Industrial Bank of Japan),
8 3/4%, 1999..................................... 450,000 486,281
______________
MISCELLANEOUS-10.1% B.A.T. Capital,
Gtd. Bonds (Gtd. by B.A.T. Industries p.l.c.),
6 1/2%, 2003..................................... 500,000 498,438
Petroleos Mexicanos,
Gtd. Notes, 9%, 2003............................. 497,250 (c) 420,176
Treasury Corp. of Victoria,
Bonds (Gtd. by The Government of Victoria),
7 1/4%, 2003..................................... 230,020 (e) 214,350
Ville de Montreal,
Notes, 6 3/8%, 2001.............................. 551,876 (f) 524,973
______________
1,657,937
______________
TELECOMMUNICATIONS-3.0% Cable and Wireless,
Bonds, 6 1/2%, 2003.............................. 500,000 498,750
______________
UTILITIES-ELECTRIC-5.1% Chubu Electric Power,
Bonds, 6 1/8%, 2001.............................. 490,196 (d) 581,495
Tokyo Electric Power,
Notes, 10 1/2%, 2001............................. 220,751 (f) 252,346
______________
833,841
______________
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
_________________ ______________
FOREIGN/GOVERNMENTAL-49.5% Asfinag,
Bonds (Gtd. by the Republic of Austria),
6%, 2000......................................... $ 784,314 (d) $ 927,451
Bundesrepublik Deutschland:
7 1/8%, 2002..................................... 570,145 (a) 610,625
7 3/8%, 2005..................................... 691,085 (a) 744,575
Comunidad Andalucia,
8%, 2000......................................... 350,000 374,938
France O.A.T.:
Coupon Strips:
Zero Coupon, 2018............................... 2,001,201 (g) 336,202
Zero Coupon, 2022............................... 1,911,750 (h) 189,837
Deb., 6 3/4%, 2004.............................. 400,240 (g) 396,958
Ireland Treasury Securities,
6 1/4%, 2004..................................... 451,583 (i) 415,682
Kingdom of Denmark Bullet,
7%, 2004......................................... 606,980 (j) 594,841
Kingdom of Spain Government Bonds,
4 5/8%, 2004..................................... 490,196 (d) 555,147
Netherlands Government Bonds,
5 3/4%, 2004..................................... 1,172,840 (k) 1,156,420
Republic of Italy,
Notes, 5 1/8%, 2003.............................. 441,176 (d) 502,941
Republic of South Africa, Deb.,
9 5/8%, 1999..................................... 450,000 481,227
United Kingdom Treasury Securities,
8 1/2%, 2005..................................... 616,590 (c) 656,861
United Mexican States (Aztec),
Collateralized Floating Rate Bonds,
7.609%, 2008..................................... 250,000 (b) 221,250
______________
8,164,955
______________
TOTAL BONDS AND NOTES
(cost $14,651,633)............................... $15,631,381
==============
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
PRINCIPAL
SHORT-TERM INVESTMENTS-1.6% AMOUNT VALUE
_______________ ______________
U.S. TREASURY BILLS: 5.38%, 12/21/1995.................................. $ 176,000 $ 175,454
5.29%, 1/11/1996................................... 81,000 80,503
______________
TOTAL SHORT-TERM INVESTMENTS
(cost $255,986).................................. $ 255,957
==============
TOTAL INVESTMENTS (cost $14,907,619) ................................................ 96.4% $15,887,338
======== ==============
CASH AND RECEIVABLES (NET) ........................................................ 3.6% $ 592,588
======== ==============
NET ASSETS.............................................................................. 100.0% $16,479,926
======== ==============
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 Danish Krone.
(k) Denominated in Dutch Guilders.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $14,907,619)-see statement...................................... $15,887,338
Cash.................................................................... 73,440
Interest receivable..................................................... 453,808
Net unrealized appreciation on forward currency exchange
contracts-Note 3(a)................................................... 68,076
Prepaid expenses........................................................ 50,840
_______________
16,533,502
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 2,490
Due to Distributor...................................................... 3,365
Accrued expenses........................................................ 47,721 53,576
____________ _______________
NET ASSETS ................................................................ $16,479,926
===============
REPRESENTED BY:
Paid-in capital......................................................... $15,612,764
Accumulated undistributed investment income-net......................... 68,497
Accumulated net realized (loss) on investments.......................... (249,130)
Accumulated net unrealized appreciation on investments
and foreign currency transactions-Note 3(b)........................... 1,047,795
_______________
NET ASSETS at value applicable to 1,261,299 shares outstanding
(300 million shares of $.001 par value Common Stock authorized)......... $16,479,926
===============
NET ASSET VALUE, offering and redemption price per share
($16,479,926 / 1,261,299 shares)........................................ $13.07
=======
See notes to financial statements.
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 1995
INVESTMENT INCOME:
INTEREST INCOME (net of $1,715 foreign taxes withheld at source)........ $1,208,600
EXPENSES:
Management fee-Note 2(a).............................................. $111,700
Shareholder servicing costs-Note 2(b,c)............................... 74,148
Auditing fees......................................................... 30,775
Directors' fees and expenses-Note 2(d)................................ 20,194
Organization expenses................................................. 18,190
Prospectus and shareholders' reports-Note 2(b)........................ 17,772
Registration fees..................................................... 15,894
Custodian fees........................................................ 8,851
Legal fees............................................................ 6,546
Miscellaneous......................................................... 4,466
____________
TOTAL EXPENSES.................................................. 308,536
Less-expense reimbursement from Manager due to
undertakings-Note 2(a)............................................ 179,316
____________
NET EXPENSES.................................................... 129,220
___________
INVESTMENT INCOME-NET........................................... 1,079,380
___________
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3(a)............................ $ (61,415)
Net realized gain on forward currency exchange contracts-Note 3(a)...... 121,010
____________
NET REALIZED GAIN..................................................... 59,595
Net unrealized appreciation on investments and forward currency
exchange contracts.................................................... 1,277,458
___________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 1,337,053
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,416,433
===========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GLOBAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30,
__________________________
1994* 1995
____________ ____________
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 683,264 $ 1,079,380
Net realized gain (loss) on investments................................ (308,725) 59,595
Net unrealized appreciation (depreciation) on investments for the year. (229,663) 1,277,458
____________ _____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. 144,876 2,416,433
____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net.................................................. (578,468) (1,115,679)
____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 16,832,717 2,400,052
Dividends reinvested................................................... 514,095 928,971
Cost of shares redeemed................................................ (1,737,727) (3,425,344)
____________ _____________
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.... 15,609,085 (96,321)
____________ _____________
TOTAL INCREASE IN NET ASSETS..................................... 15,175,493 1,204,433
NET ASSETS:
Beginning of year...................................................... 100,000 15,275,493
____________ _____________
End of year (including undistributed investment income-net:
$104,796 in 1994 and $68,497 in 1995)................................ $15,275,493 $16,479,926
============ =============
SHARES SHARES
____________ ___________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 1,361,664 195,310
Shares issued for dividends reinvested................................. 42,403 74,302
Shares redeemed........................................................ (143,165) (277,215)
____________ __________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING........................ 1,260,902 (7,603)
============ ==========
* From March 18, 1994 (commencement of operations) to November 30, 1994.
See 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 year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED NOVEMBER 30,
__________________________
PER SHARE DATA: 1994(1) 1995
_____________ _________
<S> <C> <C>
Net asset value, beginning of year...................................... $12.50 $12.04
____________ ________
INVESTMENT OPERATIONS:
Investment income-net................................................... .65 .85
Net realized and unrealized gain (loss) on investments.................. (.54) 1.06
____________ ________
TOTAL FROM INVESTMENT OPERATIONS...................................... .11 1.91
____________ ________
DISTRIBUTIONS;
Dividends from investment income-net.................................... (.57) (.88)
____________ ________
Net asset value, end of year............................................ $12.04 $13.07
============== =========
TOTAL INVESTMENT RETURN..................................................... 1.29%(2) 16.47%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................. -- .81%
Ratio of net investment income to average net assets.................... 7.83%(2) 6.76%
Decrease reflected in above expense ratios due to undertakings by Dreyfus 2.49%(2) 1.12%
Portfolio Turnover Rate................................................. 4.16%(3) 20.46%
Net Assets, end of year (000's Omitted)................................. $15,275 $16,480
(1) From March 18, 1994 (commencement of operations) to November 30, 1994.
(2) Annualized.
(3) Not annualized.
See notes to financial statements.
</TABLE>
DREYFUS GLOBAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
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. 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 November 30, 1995, Major Trading Corporation, a subsidiary of
Mellon Bank Investments Corporation, held 458,617 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. Forward currency exchange contracts are valued at the forward rate.
(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. Such gains and losses are included with net realized and
unrealized gain or loss on investments.
(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 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 November 30, 1995, the Board of Directors declared a cash dividend of
$.061 per share from undistributed investment income-net, payable on December
1, 1995 (ex-dividend date), to shareholders of record as of the close of
business on November 30, 1995.
DREYFUS GLOBAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (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 $417,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1995. The
carryover does not include net realized securities losses from November 1,
1995 through November 30, 1995 which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, $241,000 of the
carryover expires in fiscal 2002 and $176,000 of the carryover expires in
fiscal 2003.
NOTE 2-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSAC
TIONS
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
(excluding 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 December
22, 1995 to reduce other expenses paid by the Fund, to the extent that the
Fund's aggregate expenses (exclusive of certain expenses as described above)
exceeded specified annual percentages of the Fund's average daily net assets.
The expense reimbursement, pursuant to the undertakings, amounted to $179,316
for the year ended November 30, 1995.
The Manager has currently undertaken through November 30, 1996 to reduce
the management fee paid by the Fund, to the extent that the Fund's aggregate
annual expenses (exclusive of certain expenses as described above) exceed an
annual rate of 1.35 of 1% of the average daily value of the Fund's net
assets.
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.
Effective December 1, 1995, Dreyfus Transfer, Inc., a wholly-owned
subsidiary of Dreyfus, serves as the Fund's Transfer and Dividend Disbursing
Agent.
(B) Prior to October 1, 1995, the Fund had a Distribution Plan (the
"Plan") adopted pursuant to Rule 12b-1 under the Act, which provided that the
Fund (a) reimburse the Distributor for payments to certain Service Agents for
distributing the Fund's shares and (b) pay 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 paid 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 were made. The fees
DREYFUS GLOBAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
payable under the Plan were payable without regard to actual expenses
incurred. The Plan also provided for the Fund to bear the costs of preparing,
printing and distributing certain of the Fund's prospectuses and statements
of additional information and costs associated with implementing and
operating the Plan, not to exceed the greater of $100,000 or .005 of 1% of
the Fund's average daily net assets for any full fiscal year. During the
period from December 1, 1994 though September 30, 1995, the Fund was charged
$46,436 pursuant to the Plan. Effective October 1, 1995, the Plan was
terminated.
(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 year ended November 30, 1995, $39,893 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 year ended November 30, 1995 amounted to $3,211,140 and
$3,098,912, respectively.
In addition, the following summarizes open forward currency exchange
contracts at November 30, 1995:
<TABLE>
<CAPTION>
FOREIGN
CURRENCY U.S. DOLLAR UNREALIZED
FORWARD CURRENCY SALE CONTRACTS AMOUNT PROCEEDS VALUE APPRECIATION
________________________________ _____________ _____________ _____________ _______________
<S> <C> <C> <C> <C>
Dutch Guilders, expiring 4/30/96........ 1,450,000 $ 929,845 $ 902,190 $27,655
German Deutsche Marks, expiring 4/30/96. 841,580 605,453 586,058 19,395
Japanese Yen, expiring 4/30/96.......... 223,673,472 2,259,328 2,238,302 21,026
____________
$68,076
============
</TABLE>
The Fund enters into forward currency exchange 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.
DREYFUS GLOBAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(B) At November 30, 1995, accumulated net unrealized appreciation on
investments was $1,047,795, consisting of $1,313,719
gross unrealized appreciation and $265,924 gross unrealized depreciation.
At November 30, 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.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS GLOBAL BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Global Bond Fund, Inc., including the statement of investments, as of
November 30, 1995, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in
the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of November 30, 1995 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Global Bond Fund, Inc. at November 30, 1995, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights
for each of the indicated years, in conformity with generally accepted
accounting principles.
(Ernst & Young LLP signature logo)
New York, New York
January 8, 1996
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund elects to provide each
shareholder with their portion of the Fund's foreign taxes paid and the
income sourced from foreign countries. Accordingly, the Fund hereby makes the
following designations regarding its fiscal year ended November 30, 1995:
-the total amount of taxes paid to foreign countries was $1,715.
-the total amount of income sourced from foreign countries was $943,079.
As required by Federal tax law rules, shareholders will receive
notification of their proportionate share of foreign taxes paid and foreign
source income for the 1995 calendar year with Form 1099-DIV which will be
mailed by January 31, 1996.
(Dreyfus lion "d" logo)
DREYFUS GLOBAL BOND FUND, INC.
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 098AR9511
(Dreyfus logo)
Global Bond
Fund, Inc.
Annual Report
November 30, 1995
