Dreyfus
Global Bond
Fund, Inc.
SEMIANNUAL REPORT May 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
8 Statement of Assets and Liabilities
9 Statement of Operations
10 Statement of Changes in Net Assets
11 Financial Highlights
12 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus
Global Bond Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Global Bond Fund,
Inc. covering the six-month period from December 1, 1999 through May 31, 2000.
Inside, you' ll find information about how the fund was managed during the
reporting period and a discussion with Christine Downton, the fund's portfolio
manager.
At a meeting of the fund's Board of Directors held on May 22, 2000, the Board
approved a proposal to liquidate the fund, effective on June 30, 2000. The
fund' s Board approved this proposal because the fund has attracted very few
investors and is small in asset size. As a result, this is the fund's final
shareholder report.
We appreciate your confidence and investment in the fund, and hope to be able to
serve your investment needs in the future.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
June 15, 2000
DISCUSSION OF FUND PERFORMANCE
Christine Downton, Portfolio Manager
How did Dreyfus Global Bond Fund, Inc. perform relative to its benchmark?
For the six-month period ended May 31, 2000, Dreyfus Global Bond Fund, Inc.
produced a total return of 2.14%.(1) This compares with a total return of -2.58%
for the Salomon Smith Barney World Government Bond Index (unhedged), the fund's
benchmark.(2)
We attribute the fund' s performance to our currency posture, which was
positioned to benefit from the euro currency. As the euro appreciated against
the U.S. dollar during the last few months of the reporting period, our heavy
emphasis on the euro helped boost the fund' s overall returns.
What was the fund's investment approach over the period?
The fund ordinarily invested most of its assets in debt obligations of issuers
located throughout the world. These debt obligations may have included
government bonds and notes, sovereign debt obligations, convertible securities,
mortgage-related securities, municipal obligations, money market instruments and
corporate bonds, debentures and notes.
The fund generally invested in debt obligations issued by governments or
corporations in at least three countries. We typically selected foreign
securities based on their real yields relative to yields in other countries, the
economic and financial markets of the countries in which the issuers are
located, and the interest-rate environment in those countries. We typically
invested in developed countries' sovereign debt, and the average credit quality
of the portfolio was AA as of May 31, 2000.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
The fund's performance was influenced by a strong worldwide demand for goods and
services during the past six months. In response, Europe and Japan produced a
surplus of goods in an effort to keep pace with demand. At the same time, lower
interest rates in both of these regions helped them maintain low levels of
inflation. In the United States, a series of short-term interest-rate hikes
initiated by the Federal Reserve Board were designed to keep inflation levels
low in an environment characterized by rapid economic growth.
In the United Kingdom, the Bank of England also aggressively raised interest
rates during the period in an effort to forestall inflation. In addition, many
pension funds in the U.K. have recently purchased sterling bonds that have
longer maturity dates, a move that prompted an increase in bond prices. In such
an environment, we believed that many of these longer-dated bonds were
overpriced. The fund chose to take profits by selling some of our longer-dated
bonds in the U.K and using those assets to invest in bonds with shorter
maturities, where we were able to earn higher yields.
In response to these influences, we reduced the portfolio's average duration --
a measure of its sensitivity to interest rates. We did so to enable the
portfolio to react more quickly to a changing global bond market environment as
well as to take profits from existing longer-dated bonds. At the same time, we
chose to emphasize securities that were linked to the U.S. dollar. Many of these
bonds offered yields at rates above that of inflation, and we believed they
offered good value.
How was the fund managed over the period?
During the reporting period, the fund's investments were shifted away from "Core
Europe," where the currency is linked to the euro. Instead, we focused our
investments more toward the U.K. and Sweden, especially those in shorter term
bonds, as well as to dollar-related markets,
such as Australia and Canada. In our view, Sweden and Australia both have
relatively low inflation and restrictive monetary policies, which, we believed,
made their bonds attractive investments. We modestly increased our exposure to
the Canadian dollar because we believed that a lower inflation environment,
coupled with an economy that is growing at a more reasonable pace than that of
the U.S., could help to reduce risk in the portfolio.
(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. RETURN FIGURES PROVIDED REFLECT THE
ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN
UNDERTAKING IN EFFECT THAT MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME.
HAD THESE EXPENSES NOT BEEN ABSORBED, THE FUND'S RETURN WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- REFLECTS REINVESTMENT OF
DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE SALOMON SMITH
BARNEY WORLD GOVERNMENT BOND INDEX (UNHEDGED) IS AN UNMANAGED, FIXED-INCOME
INDEX AND A MARKET CAPITALIZATION BENCHMARK THAT TRACKS THE PERFORMANCE AND
COVERS DEBT ISSUES OF 14 GOVERNMENT BOND MARKETS.
The Fund
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
May 31, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
BONDS AND NOTES--90.7% Amount(a) Value ($)
--------------------------------------------------------------------------------------------------------------
BANKING--32.0%
Ab Spintab:
<S> <C> <C>
Bonds, 6%, 2009 SEK 3,000,000 335,637
Ser. 166, Bonds, 6.75%, 2014 SEK 16,200,000 1,909,325
Abbey National Treasury,
Bonds, 7.125%, 2001 GBP 355,000 533,748
Bank Nederlandse Gemeenten, Ser. 97,
Medium-Term Notes, 6.375%, 2005 GBP 525,000 780,906
Bayerische Landesbank Girozentrale,
Notes, 6%, 2004 NZD 1,200,000 513,792
Eurofima,
Medium-Term Notes, 5.625%, 2008 SEK 2,000,000 217,986
Eurohypo,
Medium-Term Notes, 7.25%, 2002 GBP 510,000 770,897
Inter-American Development Bank,
Bonds, 1.9%, 2009 JPY 69,000,000 651,365
5,713,656
FINANCIAL--2.6%
Depfa Finance, Ser. 83,
Medium-Term Notes, 7.75%, 2001 GBP 305,000 462,596
FOREIGN/GOVERNMENTAL--27.1%
Australia Government Bonds,
7.5%, 2009 AUD 1,140,000 708,398
Government of New Zealand Bonds:
7%, 2009 NZD 890,000 408,747
6%, 2011 NZD 753,000 320,584
Kingdom of Sweden Notes,
6.75%, 2014 SEK 6,600,000 848,437
United Kingdom Gilt Edged Securties:
7%, 2002 GBP 320,000 487,078
8.5%, 2005 GBP 1,220,000 2,065,609
4,838,853
FOREIGN/SUPRANATIONAL--4.3%
European Investment Bank,
Notes, 9%, 2002 GBP 490,000 765,723
TELECOMMUNICATIONS--4.0%
Telstra,
Medium-Term Notes, 7.25%, 2010 AUD 1,280,000 718,131
Principal
BONDS AND NOTES (CONTINUED) Amount(a) Value ($)
--------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--2.2%
Federal National Mortgage Association,
Medium-Term Notes, 6.375%, 8/15/2007 AUD 725,000 399,820
U.S. GOVERNMENT--18.5%
U.S. Treasury Inflation Protection Securities,
3.875%, 1/15/2009 3,250,000 (b) 3,315,462
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $16,869,232) 90.7% 16,214,241
CASH AND RECEIVABLES (NET) 9.3% 1,666,334
NET ASSETS 100.0% 17,880,575
(A) PRINCIPAL AMOUNT WILL BE IN U.S. DOLLARS UNLESS OTHERWISE NOTED.
AUD--AUSTRALIAN DOLLARS
GBP--BRITISH POUNDS
JPY--JAPANESE YEN
NZD--NEW ZEALAND DOLLARS
SEK--SWEDISH KRONE
(B) PRINCIPAL AMOUNT FOR ACCRUAL PURPOSES IS PERODICALLY ADJUSTED BASED ON CHANGES TO THE CONSUMER PRICE INDEX.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 16,869,232 16,214,241
Cash 46,184
Cash denominated in foreign currencies 23,307 23,284
Receivable for foward currency exchange contracts closed 1,887,632
Interest receivable 262,414
Net unrealized appreciation on forward currency
exchange contracts-Note 4(a) 54,902
Receivable for shares of Common Stock subscribed 350
18,489,007
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 8,020
Payable for shares of Common Stock redeemed 298,577
Payable for forward currency exchange contracts closed 255,263
Accrued expenses 46,572
608,432
--------------------------------------------------------------------------------
NET ASSETS ($) 17,880,575
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 19,017,365
Accumulated undistributed investment income--net 131,477
Accumulated net realized gain (loss) on investments and
foreign currency transactions (660,334)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (607,933)
--------------------------------------------------------------------------------
NET ASSETS ($) 17,880,575
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(300 million shares of $.001 par value Common Stock authorized) 1,507,016
NET ASSET VALUE, offering and redemption price per share ($) 11.86
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 485,766
EXPENSES:
Management fee--Note 3(a) 66,301
Shareholder servicing costs--Note 3(b) 32,329
Registration fees 20,777
Legal fees 18,125
Directors' fees and expenses--Note 3(c) 12,735
Custodian fees 7,131
Auditing fees 6,630
Prospectus and shareholders' reports 6,252
Loan commitment fees--Note 2 76
Miscellaneous 4,849
TOTAL EXPENSES 175,205
Less--reduction in management fee due to undertaking--Note 3(a) (47,263)
NET EXPENSES 127,942
INVESTMENT INCOME--NET 357,824
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions (1,765,371)
Net realized gain (loss) on forward currency exchange contracts 1,669,395
NET REALIZED GAIN (LOSS) (95,976)
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions 131,790
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 35,814
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 393,638
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
Six Months Ended Year Ended
May 31, 2000 November 30,
(Unaudited) 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 357,824 676,927
Net realized gain (loss) on investments (95,976) 117,590
Net unrealized appreciation (depreciation) on investments 131,790 (1,629,544)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 393,638 (835,027)
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (771,589) (593,644)
Net realized gain on investments -- (335,579)
TOTAL DIVIDENDS (771,589) (929,223)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 4,384,424 10,411,607
Dividends reinvested 706,928 821,994
Cost of shares redeemed (6,385,222) (6,683,537)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (1,293,870) 4,550,064
TOTAL INCREASE (DECREASE) IN NET ASSETS (1,671,821) 2,785,814
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 19,552,396 16,766,582
END OF PERIOD 17,880,575 19,552,396
Undistributed investment income--net 131,477 545,242
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 373,458 821,126
Shares issued for dividends reinvested 60,146 64,895
Shares redeemed (543,455) (536,270)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (109,851) 349,751
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
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.
Six Months Ended
May 31, 2000 Year Ended November 30,
----------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
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PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C> <C>
beginning of period 12.09 13.23 12.97 13.18 13.07 12.04
Investment Operations:
Investment income--net .22(a) .44(a) .56(a) .65(a) .77(a) .85
Net realized and unrealized
gain (loss) on investments .03 (.93) .63 .02 .55 1.06
Total from Investment Operations .25 (.49) 1.19 .67 1.32 1.91
Distributions:
Dividends from investment
income--net (.48) (.39) (.81) (.88) (1.21) (.88)
Dividends from net realized gain
on investments -- (.26) (.12) -- -- --
Total Distributions (.48) (.65) (.93) (.88) (1.21) (.88)
Net asset value, end of period 11.86 12.09 13.23 12.97 13.18 13.07
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 4.27(b) (3.87) 9.70 5.42 10.96 16.47
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets 1.35(b) 1.35 1.35 1.35 1.34 .81
Ratio of net investment income
to average net assets 3.77(b) 3.51 4.36 5.10 5.87 6.76
Decrease reflected in above
expense ratios due to undertaking
by The Dreyfus Corporation .50(b) .53 .61 .75 .66 1.12
Portfolio Turnover Rate 143.14(c) 235.89 222.22 274.83 81.34 20.46
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 17,881 19,552 16,767 12,046 10,779 16,480
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) ANNUALIZED
(C) NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Global 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 seek total
return. The Dreyfus Corporation (" Dreyfus") serves as the fund's investment
adviser. Dreyfus is a direct subsidiary of Mellon Bank, N.A., which is a
wholly-owned subsidiary of Mellon Financial Corporation. Pareto Partners
(" Pareto" ) serves as the fund's sub-investment adviser. Effective March 22,
2000, Dreyfus Service Corporation ("DSC"), a wholly-owned subsidiary of Dreyfus,
became the disrtibutor 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.
As of May 31, 2000, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held 537,023 shares of the fund.
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 short-term
investments, other than Treasury Bills and financial futures) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Directors. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of securities of comparable quality, coupon, maturity and
type; indication as to values from dealers; and general market conditions.
Securities for which there
are no such valuations are valued at fair value as determined in good faith
under the direction of the Board of Directors. Short-term investments, excluding
Treasury Bills, are carried at amortized cost, which approximates value.
Financial futures are valued at the last sales price on the securities exchange
on which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments 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 and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amount 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, 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. Under the terms of the custody agreement, the
fund receives net earnings credits based on available cash balances left on
deposit.
(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 nor The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
mally 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"). This may result in distributions
that are in excess of investment income-net and net realized gain on a fiscal
year basis. 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, 2000, the Board of Directors declared a cash dividend of $.029 per
share from investment income-net, payable on June 1, 2000 (ex-dividend date), to
shareholders of record as of the close of business on May 31, 2000.
(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 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 $490,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1999. This
amount is calculated based on Federal income tax regulations which may differ
from financial reporting in accordance with generally accepted accounting
principals. If not applied, the carryover expires in fiscal 2007.
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 May
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 Dreyfus, the management fee is
computed at the annual rate of .70 of 1% of the value of the fund's average
daily net assets and is payable monthly. Dreyfus had undertaken from December 1,
1999 through May 31, 2000 to reduce the management fee paid by the fund, to the
extent that the fund's aggregate annual expenses exclusive of taxes, brokerage
fees, interest on borrowings, commitment fees and extraordinary expenses,
exceeded an annual rate of 1.35% of the value of the fund's average daily net
assets. The reduction in management fee, pursuant to the undertaking, amounted
to $47,263 during the period ended May 31, 2000.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Pareto, the
sub-investment advisory fees are payable monthly to Dreyfus, and are based upon
the value of the fund' s average daily net assets, computed at the following
annual rates:
Average Net Assets
0 to $100 million. . . . . . . . . . . . . . . . . .22 of 1%
$100 million to 1 billion. . . . . . . . . . . . . .20 of 1%
$1 billion to 1.5 billion. . . . . . . . . . . . . .18 of 1%
$1.5 billion or more . . . . . . . . . . . . . . . .16 of 1%
(b) Under the Shareholder Services Plan, the fund pays the distributor at an
annual rate of .25 of 1% of the value of the fund's average daily net assets for
the provision of certain services. 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. The distributor may
make payments to Service Agents (a securities dealer, financial institution or
other industry professional) in respect of these services. The distributor
determines the amounts to be paid to Service Agents. During the period ended May
31, 2000, the fund was charged $23,679 pursuant to the Shareholder Services
Plan, of which $11,480 was paid to DSC.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended May 31, 2000, the fund was charged $5,432 pursuant to the transfer agency
agreement.
(C) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective January 1, 2000,
each Board member who is not an "affiliated person" as defined in the Act
receives an annual fee of $40,000 and an attendance fee of $6,000 for each
meeting attended in person and $500 for telephone meetings. These fees are
allocated among the funds in the Fund Group. The Chairman of the Board receives
an additional 25% of such compensation. Prior to January 1, 2000, each Board
member who was not an "affiliated person" as defined in the Act received from
the fund an annual fee of $1,000 and an attendance fee of $250 per meeting. The
Chairman of the Board received an additional 25% of such compensation. Subject
to the fund's Director Emeritus Program Guidelines, Emeritus Board members, if
any, receive 50% of the fund's annual retainer fee and per meeting fee paid at
the time the Board member achieved emeritus status.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended May 31, 2000, amounted to $25,320,437 and $25,722,426,
respectively.
<TABLE>
<CAPTION>
In addition, the following summarizes open forward currency exchange contracts
at May 31, 2000:
Foreign Unrealized
Currency Appreciation
Forward Currency Exchange Contracts Amounts Proceeds($) Value($) (Depreciation)($)
----------------------------------------------------------------------------------------------------------------------------------
SALES:
Australian Dollars,
<S> <C> <C> <C> <C> <C> <C>
expiring 6/30/2000 3,173,000 1,850,494 1,818,764 31,730
Australian Dollars,
expiring 8/15/2000 3,173,000 1,832,725 1,820,350 12,375
New Zealand Dollars,
expiring 8/15/2000 2,762,000 1,267,758 1,266,377 1,381
Swedish Krona,
expiring 8/15/2000 28,766,000 3,224,165 3,231,118 (6,953)
PURCHASES: COST ($)
Canadian Dollars,
expiring 8/15/2000 2,833,600 1,890,327 1,897,669 7,342
Euros,
expiring 8/15/2000 6,448,000 6,061,120 6,070,147 9,027
TOTAL 54,902
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 The Fun
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
dates. With respect to purchases 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 gain on each open contract.
(b) At May 31, 2000, accumulated net unrealized depreciation on investments and
forward currency exchange contracts was $600,089 consisting of $109,920 gross
unrealized appreciation and $710,009 gross unrealized depreciation.
At May 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).
NOTE 5--Subsequent Event:
At a meeting of the fund's Board of Directors held on May 22, 2000, the Board
approved a proposal to liquidate the fund and distribute its assets pro rata to
fund shareholders. The date of liquidation of the fund is June 30, 2000.
NOTES
For More Information
Dreyfus Global Bond Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
Pareto Partners
271 Regent Street
London WIR8PP
England
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
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