Dreyfus
Global Bond
Fund, Inc.
ANNUAL REPORT November 30, 1999
(reg.tm)
<PAGE>
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
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. In addition, issuers of securities in
which the fund invests may be adversely affected by year 2000-related problems.
This could have an impact on the value of the fund's investments and its share
price.
<PAGE>
Contents
THE FUND
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
9 Statement of Assets and Liabilities
10 Statement of Operations
11 Statement of Changes in Net Assets
12 Financial Highlights
13 Notes to Financial Statements
19 Report of Independent Auditors
20 Proxy Results
FOR MORE INFORMATION
Back Cover
<PAGE>
The Fund
Dreyfus
Global Bond Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Global Bond Fund, Inc.,
covering the 12-month period from December 1, 1998 through November 30, 1999.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Christine Downton.
When the reporting period began, much of the world was recovering from a global
financial crisis that had created recessions in several international markets.
It soon became evident that the more accommodative monetary policies implemented
by central banks worldwide were supporting the early stages of economic
recoveries in Japan and the emerging markets of Asia, Latin America and Eastern
Europe.
By the third quarter of 1999, rising growth rates in most parts of the world
fostered concerns that inflationary pressures might re-emerge. In the U.S., the
Federal Reserve Board raised interest rates three times during the summer and
fall of 1999 in an attempt to forestall inflationary pressures. Because U.S.
businesses and consumers are important drivers of many foreign economies,
interest rates also rose in many international markets. As a result, returns
from international bonds generally declined during the reporting period
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Global Bond Fund, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
December 15, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Christine Downton, Portfolio Manager
How did Dreyfus Global Bond Fund, Inc. perform relative to its benchmark?
For the 12-month period ended November 30, 1999, Dreyfus Global Bond Fund, Inc.
produced a total return of -3.87% .(1) This compares with a total return of
- -2.10% for the Salomon Smith Barney World Government Bond Index (unhedged), the
fund' s benchmark.(2)
We attribute the fund's relative performance to slowing economic growth in the
European markets, which dampened the performance of our investments there during
much of the period. In addition, toward the middle of the reporting period, we
maintained a slightly longer average duration (a measure of the portfolio's
sensitivity to changing interest rates) relative to the fund's benchmark. Fears
of inflation in the global bond markets prompted bond yields in the United
States and elsewhere to rise. In such an environment, our longer duration served
to hinder the fund' s overall returns.
What is the fund's investment approach?
The fund ordinarily invests most of its assets in debt obligations of issuers
located throughout the world. These debt obligations may include 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 will generally invest in debt obligations issued by governments or
corporations in at least three countries. We typically select 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 invest in developed
countries' sovereign debt, and the average credit quality of the portfolio was
AA as of November 30, 1999.
The Fund
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
During the first nine months of the reporting period, the fund focused on
investments in the European markets, particularly in Spain, Italy, Sweden and
The Netherlands. Local European bond markets performed well relative to other
global markets, in the first half of the year, to the benefit of the portfolio.
Currency risk management also gave significant protection against the weakness
of the euro relative to the U.S. dollar. However, midway through the reporting
period, the U.S. bond markets began to show signs of weakening, both on an
absolute basis and relative to European markets. During that period we realized
profits by selling some of our European holdings, choosing instead to deploy
those assets to dollar-related markets, such as Canada, Australia and, to a
lesser degree, New Zealand.
At the same time, we extended the portfolio's average duration to approximately
seven years. During most of the reporting period, the fund's average duration
was approximately six years compared to the benchmark's average duration of 5.7
years. In hindsight, we believe we might have extended our average duration a
little too early because it reduced our ability to capture higher yields on U.S.
bonds. By October, however, we began shifting approximately 15% of those assets
back into the European markets after modest deterioration of the euro, enabling
us to purchase European bonds at what we believed were attractive prices
Finally, we continued to avoid investments in Japan because we believe the
Japanese bond market remains overvalued. Later in the period, the yen grew in
strength relative to the U.S. dollar, primarily because of rising confidence in
the recovery of the Japanese economy. While we have been encouraged by the
actions taken by the Japanese authorities to address their economic problems, we
currently prefer to remain cautious in our view toward the region.
<PAGE>
What is the fund's current strategy?
We are confident that our strategy of gradually moving a portion of the fund's
assets back into the European markets can position the fund well in the
prevailing investment environment.
December 15, 1999
(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 RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- THE SALOMON SMITH BARNEY 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 18 GOVERNMENT BOND MARKETS.
The Fund
<PAGE>
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Global Bond Fund,
Inc. and the Salomon Smith Barney World Government Bond Index (unhedged)
<TABLE>
Average Annual Total Returns AS OF 11/30/99
Inception From
Date 1 Year 5 Years Inception
<S> <C> <C> <C> <C>
FUND 3/18/94 (3.87)% 7.51% 6.72%
(+) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
</TABLE>
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 $10,000 INVESTMENT MADE IN THE SALOMON
SMITH BARNEY WORLD GOVERNMENT BOND INDEX (UNHEDGED) ON THAT DATE. FOR
COMPARATIVE PURPOSES, THE VALUE OF THE INDEX ON 3/31/94 IS USED AS THE BEGINNING
VALUE ON 3/18/94. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE
FEES AND EXPENSES. THE SALOMON SMITH BARNEY WORLD GOVERNMENT BOND INDEX
(UNHEDGED) IS A FIXED-INCOME INDEX AND IS A MARKET-CAPITALIZATION WEIGHTED
BENCHMARK THAT TRACKS THE PERFORMANCE AND COVERS DEBT ISSUES OF 18 GOVERNMENT
BOND MARKETS. THE INDEX DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER
EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
November 30, 1999
Principal
BONDS AND NOTES--91.0% Amount(a) Value ($)
BANKING--36.3%
Ab Spintab:
<S> <C> <C> <C> <C> <C>
Bonds, 6%, 2009 SEK 2,000,000 226,614
Ser. 166, Bonds, 6.75%, 2014 SEK 7,200,000 840,413
Abbey National Treasury,
Bonds, 7.125%, 2001 GBP 400,000 642,275
Banco Bilbao Vizcaya,
Bonds, 5.5%, 2009 EUR 1,500,000 1,502,161
Bayerische Landesbank Girozentrale,
Notes, 6%, 2004 NZD 1,320,000 635,087
Eurofima,
Medium-Term Notes, 5.625%, 2008 SEK 2,000,000 233,328
Inter-American Development Bank,
Bonds, 1.9%, 2009 JPY 93,000,000 919,053
Landwirtschaftliche Rentenbank, Ser. 145,
Bonds, 4.125%, 2009 EUR 740,000 677,066
Rheinische Hypothekenbank, Ser. 798,
Bonds, 4.5%, 2004 EUR 660,000 649,866
Swedish Export Credit,
Notes, 5.625%, 2005 SEK 6,530,000 760,623
7,086,486
FINANCIAL--6.8%
Depfa Finance, Ser. 83,
Medium-Term Notes, 7.75%, 2001 GBP 250,000 403,491
Principal Financial Global Fund, Ser. 1,
Bonds, 4.5%, 2009 EUR 1,000,000 915,129
1,318,620
FOREIGN/GOVERNMENTAL--27.6%
Australia Government Bonds,
7.5%, 2009 AUD 340,000 229,721
Government of New Zealand Bonds:
7%, 2009 NZD 1,340,000 681,099
6%, 2011 NZD 303,000 140,660
Japan Government Bonds, Ser. 41,
1.5%, 2019 JPY 40,700,000 337,117
Kingdom of Sweden Notes,
6.75%, 2014 SEK 6,000,000 764,689
Netherlands Government Bonds:
5.25%, 2008 EUR 1,070,000 1,084,689
7.5%, 2010 EUR 238,499 281,191
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount(a) Value ($)
FOREIGN/GOVERNMENTAL (CONTINUED)
Spain Government Deb.,
5.15%, 2009 EUR 1,890,000 1,883,515
5,402,681
INSURANCE--3.4%
Istituto Nazionale delle Assicurazioni,
Sr. Deb., 4.5%, 2009 EUR 730,000 672,568
RETAIL TRADE-FOOD CHAINS--3.4%
Carrefour,
Bonds, 4.5%, 2009 EUR 720,000 672,153
U.S. GOVERNMENT--10.2%
U.S. Treasury Inflation Protection Securities,
3.875%, 1/15/2009 1,988,000 (b) 1,993,606
UTILITIES-TELEPHONE--3.3%
Koninklijke KPN,
Sr. Deb., 4.75%, 2008 EUR 690,000 654,679
TOTAL BONDS AND NOTES
(cost $18,922,002) 17,800,793
SHORT-TERM INVESTMENTS--1.3%
U.S. TREASURY BILLS,
4.62%, 12/23/1999
(cost $251,288) 252,000 251,370
TOTAL INVESTMENTS (cost $19,173,290) 92.3% 18,052,163
CASH AND RECEIVABLES (NET) 7.7% 1,500,233
NET ASSETS 100.0% 19,552,396
(A) PRINCIPAL AMOUNT WILL BE IN U.S. DOLLARS UNLESS OTHERWISE NOTED.
AUD--AUSTRALIAN DOLLARS
EUR--EUROS
GBP--BRITISH POUNDS
JPY--JAPANESE YEN
NZD--NEW ZEALAND DOLLARS
SEK--SWEDISH KRONE
(B) PRINCIPAL AMOUNT FOR ACCRUAL PURPOSES IS PERIODICALLY ADJUSTED BASED ON CHANGES TO THE CONSUMER PRICE INDEX.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
Cost Value
ASSETS ($):
Investments in securities--See Statement of Investments 19,173,290 18,052,163
Cash 639,309
Cash denominated in foreign currencies 43 43
Receivable for forward currency exchange contracts closed 545,097
Interest receivable 449,391
Net unrealized appreciation on forward currency
exchange contracts--Note 4(a) 393,625
Receivable for shares of Common Stock subscribed 5,426
Prepaid expenses and other assets 6,682
20,091,736
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 4,795
Due to Distributor 4,020
Payable for forward currency exchange contracts closed 435,178
Payable for shares of Common Stock redeemed 43,014
Accrued expenses 52,333
539,340
NET ASSETS ($) 19,552,396
COMPOSITION OF NET ASSETS ($):
Paid-in capital 20,311,235
Accumulated undistributed investment income--net 545,242
Accumulated net realized gain (loss) on investments and
foreign currency transactions (564,358)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (739,723)
NET ASSETS ($) 19,552,396
SHARES OUTSTANDING
(300 million shares of $.001 par value Common Stock authorized) 1,616,867
NET ASSET VALUE, offering and redemption price per share ($) 12.09
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
STATEMENT OF OPERATIONS
Year Ended November 30, 1999
INVESTMENT INCOME ($):
INTEREST INCOME 937,645
EXPENSES:
Management fee--Note 3(a) 135,121
Shareholder servicing costs--Note 3(b) 60,266
Legal fees 45,801
Auditing fees 35,173
Registration fees 25,130
Directors' fees and expenses--Note 3(c) 24,084
Prospectus and shareholders' reports 15,164
Custodian fees 10,332
Loan commitment fees--Note 2 162
Miscellaneous 12,666
TOTAL EXPENSES 363,899
Less--reduction in management fee due to
undertaking--Note 3(a) (103,181)
NET EXPENSES 260,718
INVESTMENT INCOME--NET 676,927
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency transactions
(1,076,435)
Net realized gain (loss) on forward currency exchange contracts 1,194,025
NET REALIZED GAIN (LOSS) 117,590
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions (1,629,544)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (1,511,954)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (835,027)
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Year Ended November 30,
1999 1998
OPERATIONS ($):
Investment income--net 676,927 617,124
Net realized gain (loss) on investments 117,590 74,188
Net unrealized appreciation (depreciation)
on investments (1,629,544) 694,741
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (835,027) 1,386,053
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (593,644) (852,420)
Net realized gain on investments (335,579) (115,181)
TOTAL DIVIDENDS (929,223) (967,601)
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 10,411,607 7,516,813
Dividends reinvested 821,994 840,782
Cost of shares redeemed (6,683,537) (4,055,687)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 4,550,064 4,301,908
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,785,814 4,720,360
NET ASSETS ($):
Beginning of Period 16,766,582 12,046,222
END OF PERIOD 19,552,396 16,766,582
Undistributed investment income
(Distributions in excess of
investment income)--net 545,242 (544,428)
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 821,126 590,731
Shares issued for dividends reinvested 64,895 66,344
Shares redeemed (536,270) (318,868)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 349,751 338,207
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
<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.
Year Ended November 30,
1999 1998 1997 1996 1995
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 13.23 12.97 13.18 13.07 12.04
Investment Operations:
Investment income--net .44(a) .56(a) .65(a) .77(a) .85
Net realized and unrealized
gain (loss) on investments (.93) .63 .02 .55 1.06
Total from Investment Operations (.49) 1.19 .67 1.32 1.91
Distributions:
Dividends from investment income--net (.39) (.81) (.88) (1.21) (.88)
Dividends from net realized gain
on investments (.26) (.12) -- -- --
Total Distributions (.65) (.93) (.88) (1.21) (.88)
Net asset value, end of period 12.09 13.23 12.97 13.18 13.07
TOTAL RETURN (%) (3.87) 9.70 5.42 10.96 16.47
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.35 1.35 1.35 1.34 .81
Ratio of net investment income
to average net assets 3.51 4.36 5.10 5.87 6.76
Decrease reflected in above expense ratios
due to undertakings by the Manager .53 .61 .75 .66 1.12
Portfolio Turnover Rate 235.89 222.22 274.83 81.34 20.46
Net Assets, end of period ($ x 1,000) 19,552 16,767 12,046 10,779 16,480
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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. Effective October 1,
1999, Pareto Partners ("Pareto") serves as the fund's sub-investment adviser.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund' s shares, which are sold to the public without a sales charge.
As of November 30, 1999, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held 515,791 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 The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 received net earnings credits of $2,309 during the period ended November
30, 1999 based on available cash balances left on deposit. Income earned under
this arrangement is included in interest income.
(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
<PAGE>
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 November 30, 1999, the Board of Directors declared a cash dividend of $.035
per share from investment income-net, payable on December 1, 1999 (ex-dividend
date) , to shareholders of record as of the close of business on November 30,
1999.
(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
principles. If not applied, the carryover expires in fiscal 2007.
During the period ended November 30, 1999, the fund increased accumulated
undistributed investment income-net by $1,006,387, and decreased accumulated net
realized gain (loss) on investments by $986,321 and paid-in capital by $20,066.
Net assets were not effected by this reclassification.
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 The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
at the time of borrowings. During the period ended November 30, 1999, 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,
1998 through November 30, 1999 to reduce the management fee paid by the fund, to
the extent that the fund' s aggregate annual expenses (exclusive of taxes,
brokerage, 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 $103,181 during the period ended November 30, 1999.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Pareto, the
sub-investment advisory fees are payable monthly by Dreyfus, and are based upon
the value of the fund' s average daily net assets, computed at the following
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 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
<PAGE>
other industry professional) in respect of these services. The Distributor
determines the amounts to be paid to Service Agents. During the period ended
November 30, 1999, the fund was charged $48,258 pursuant to the Shareholder
Services Plan.
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 November 30, 1999, the fund was charged $12,300 pursuant to the transfer
agency agreement.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $1,000 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
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 November 30, 1999, amounted to $45,644,611 and $39,417,756,
respectively.
<TABLE>
<CAPTION>
In addition, the following summarizes open forward currency exchange contracts
at November 30, 1999:
Foreign
Forward Currency Currency Unrealized
Exchange Contracts Amounts Proceeds ($) Value ($) Appreciation ($)
Sales:
Australian Dollars,
<S> <C> <C> <C> <C> <C>
expiring 6/15/2000 233,000 150,040 148,611 1,429
British Pounds,
expiring 6/15/2000 324,000 527,099 517,702 9,397
Euros,
expiring 6/15/2000 9,245,000 9,748,547 9,454,451 294,096
New Zealand Dollars,
expiring 6/15/2000 3,082,000 1,595,397 1,573,806 21,591
Swedish Krona,
expiring 6/15/2000 24,196,000 2,936,942 2,878,776 58,166
Purchases: Cost ($)
Japanese Yen,
expiring 6/15/2000 28,200,000 277,150 286,096 8,946
Total 393,625
The Fund
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 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 November 30, 1999, accumulated net unrealized depreciation on investments
and forward currency exchange contracts was $727,502 consisting of $436,694
gross unrealized appreciation and $1,164,196 gross unrealized depreciation.
At November 30, 1999, 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).
<PAGE>
REPORT OF 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, 1999, 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 and financial highlights. Our procedures included confirmation of
securities owned as of November 30, 1999 by correspondence with the custodian
and others. 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, 1999, 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.
New York, New York
January 5, 2000
The Fund
<PAGE>
PROXY RESULTS (Unaudited)
Stockholders voted on the following proposal presented at the special
stockholders' meeting held on September 17, 1999. The description of the
proposal and the number of shares voted are as follows:
Shares
For Authority Withheld
Approval of the proposed Sub-Investment Advisory Agreement between the fund
and Dreyfus 1,326,871 17,630
20
<PAGE>
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
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 098AR9911
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS GLOBAL BOND FUND, INC. AND THE SALOMON
SMITH BARNEY WORLD GOVERNMENT BOND INDEX (UNHEDGED)
EXHIBIT A:
SALOMON SMITH BARNEY DREYFUS
PERIOD WORLD GOVERNMENT GLOBAL BOND
BOND INDEX* (unhedged) FUND, INC.
3/18/94 10,000 10,000
11/30/94 10,206 10,091
11/30/95 12,056 11,753
11/30/96 12,727 13,041
11/30/97 12,691 13,748
11/30/98 14,302 15,083
11/30/99 14,001 14,498
* Source: Lipper Analytical Services, Inc.
