UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 |
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES |
| |
| Investment Company Act file number | 811-3207 |
General Money Market Fund, Inc.
(Exact name of Registrant as specified in charter) |
c/o The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
(Address of principal executive offices) (Zip code) |
Michael A. Rosenberg, Esq.
200 Park Avenue
New York, New York 10166
(Name and address of agent for service) |
| | |
| Registrant's telephone number, including area code: | (212) 922-6000 |
| Date of fiscal year end: | 11/30 | |
| Date of reporting period: | 5/31/09 | |
1
| |
| Item 1. | Reports to Stockholders. |
2
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The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.
| | Contents |
| | THE FUND |
| 2 | A Letter from the CEO |
| 3 | Discussion of Fund Performance |
| 6 | Understanding Your Fund’s Expenses |
| 6 | Comparing Your Fund’s Expenses With Those of Other Funds |
| 7 | Statement of Investments |
| 11 | Statement of Assets and Liabilities |
| 12 | Statement of Operations |
| 13 | Statement of Changes in Net Assets |
| 14 | Financial Highlights |
| 16 | Notes to Financial Statements |
| | FOR MORE INFORMATION |
| | Back Cover |
General Money
Market Fund, Inc. |
A LETTER FROM THE CEO
Dear Shareholder: |
We present to you this semiannual report for General Money Market Fund, Inc., covering the six-month period from December 1, 2008, through May 31, 2009.
While most financial markets went on a wild ride during the fund’s reporting period, money market yields generally moved in one direction — down — trending alongside short-term interest rates to historical lows. The Federal Reserve Board’s target of 0% to 0.25% for the overnight federal funds rate along with historic levels of demand for “cash” have served as anchors for money market yields in a domestic economy that has struggled with a 6.3% annualized contraction over the fourth quarter of 2008 and a 5.7% revised estimate of economic contraction during the first quarter of 2009.
The stock and bond markets’ enormous swings have caused investors to wonder if the markets are forecasting sustainable economic improvement, or could this be a bear market rally where securities reach such depressed levels that even the slightest hint of good news lifts prices.We generally have remained cautious in the absence of real economic progress, but the market’s gyrations illustrate an important feature of many rallies — when they snap back, the rebounds are often quick and sharp, potentially leaving investors on the sidelines. That’s why we encourage you to speak regularly with your financial consultant, who can discuss with you the potential benefits of adhering to a long-term investment strategy while still being considerate of your current liquid asset needs.
For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund’s Portfolio Manager.
Thank you for your continued confidence and support.
Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation
June 15, 2009 |
2
DISCUSSION OF FUND PERFORMANCE
For the period of December 1, 2008, through May 31, 2009, as provided by Bernard W. Kiernan, Jr., Senior Portfolio Manager
Fund and Market Performance Overview
For the six-month period ended May 31, 2009, General Money Market Fund’s Class A shares produced an annualized yield of 0.63%, and its Class B shares produced an annualized yield of 0.41%. Taking into account the effects of compounding, the fund’s Class A and Class B shares produced annualized effective yields of 0.63% and 0.41%, respectively.1
Money market yields declined along with short-term interest rates over the reporting period, as the Federal Reserve Board (the “Fed”) reduced its target range for the overnight federal funds rate to between 0% and 0.25%, in its attempts to stimulate economic growth and stabilize the banking system.
The Fund’s Investment Approach
The fund seeks as high a level of current income as is consistent with the preservation of capital.To pursue this goal, the fund invests in a diversified portfolio of high-quality, short-term debt securities. These include securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, certificates of deposit, time deposits, bankers’ acceptances and other short-term securities issued by domestic or foreign banks or their subsidiaries or branches, repurchase agreements, including tri-party repurchase agreements, asset-backed securities, domestic and dollar-denominated foreign commercial paper and other short-term corporate obligations, including those with floating or variable rates of interest, and dollar-denominated obligations issued or guaranteed by one or more foreign governments or any of their political subdivisions or agencies.Normally,the fund invests at least 25% of its net assets in domestic or dol lar-denominated foreign bank obligations.
The Fund 3
| DISCUSSION OF FUND PERFORMANCE (continued) |
Money Market Yields Plunged During the Downturn
The reporting period began in the midst of the most severe market turmoil since the 1930s. In the months prior to the start of the reporting period, major financial institutions found themselves unable to obtain short-term funding due to massive losses among mortgage- and asset-backed securities. In the ensuing tumult, investment bank Lehman Brothers filed for bankruptcy, and other major firms were either nationalized or sold to former rivals. Congress passed the $700 billionTroubled Assets Relief Program (TARP) to shore up the nation’s banks, and the Fed pumped massive amounts of liquidity into the financial system.
The Lehman Brothers bankruptcy led to reduced liquidity in the commercial paper market, forcing one venerable fund’s net asset value below $1 per share. To prevent a surge in withdrawals, the U.S. government adopted the Temporary Guarantee Program for Money Market Funds, and the commercial paper market subsequently stabilized. On March 31, the U.S. government announced a further extension of the Temporary Guarantee Program for Money Market Funds until September 18, 2009.
When the reporting period began, the economic downturn continued to gain momentum as job losses mounted and consumer confidence plunged.The Fed implemented an additional rate cut in December, and the target for the federal funds rate ended 2008 between 0% and 0.25%, a record low. Money market yields declined along with short-term interest rates.
U.S. GDP contracted by 6.3% in the fourth quarter of 2008, and disappointing economic news continued to undermine investor sentiment in early 2009. In January, it was announced that the median sales price of single-family homes had fallen 12% in December compared to one year earlier.The U.S. economy lost more than 650,000 jobs per month in February and March. Meanwhile, the Conference Board’s Consumer Confidence Index reached the lowest level since its inception in 1967. In an effort to stimulate the economy, the U.S. government enacted the $787 billion American Recovery and Reinvestment Act to retain and create jobs, provide budget relief to states and localities, maintain social programs and offer tax relief to businesses and individuals.
4
After hitting a multi-year low in early March, the U.S. stock market staged an impressive rebound through the reporting period’s end. Despite an estimated –6.1% annualized GDP growth rate over the first quarter of 2009, the markets were buoyed by signs that the economic downturn may be decelerating, including lower-than-expected numbers of jobless claims in April and May and an increase in retail sales. In addition, a decline in the three-month London Interbank Offered Rate (LIBOR) below 1% provided evidence of improvement in the global credit markets. However, the unemployment rate climbed to 9.4% in May, a 26-year high.
Amid Turmoil, a Focus on Quality and Liquidity
Early in the reporting period, in the midst of highly challenging liquidity conditions in the commercial paper market, we focused on money market instruments with overnight maturities. As credit conditions stabilized, we lengthened the fund’s weighted average maturity toward a range that was roughly in line with industry averages.
Despite recent signs of potential economic improvement, we remain concerned regarding liquidity conditions and tighter loan standards. In addition, the Fed opined at its April 2009 meeting that “economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.”Therefore, we intend to maintain the fund’s conservative credit posture and focus on liquidity.
June 15, 2009
| |
| | An investment in the fund is not insured or guaranteed by the FDIC or any other government |
| | agency.Although the fund seeks to preserve the value of your investment at $1.00 per share, it is |
| | possible to lose money by investing in the fund. |
| 1 | Annualized effective yield is based upon dividends declared daily and reinvested monthly. Past |
| | performance is no guarantee of future results.Yields fluctuate.Yields provided for the fund’s Class |
| | B shares reflect the absorption of certain 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 Class B shares would have produced an annualized and |
| | annualized effective yields of 0.35%. |
The Fund 5
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in General Money Market Fund, Inc. from December 1, 2008 to May 31, 2009. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.
| | Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended May 31, 2009 |
| | |
| | Class A | Class B |
| Expenses paid per $1,000† | $ 3.95 | $ 5.04 |
| Ending value (after expenses) | $1,003.10 | $1,002.00 |
COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited) |
Using the SEC’s method to compare expenses
The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
| | Expenses and Value of a $1,000 Investment
assuming a hypothetical 5% annualized return for the six months ended May 31, 2009 |
| | |
| | Class A | Class B |
| Expenses paid per $1,000† | $ 3.98 | $ 5.09 |
| Ending value (after expenses) | $1,020.99 | $1,019.90 |
|
| † Expenses are equal to the fund’s annualized expense ratio of .79% for Class A and 1.01% for Class B multiplied |
| by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
6
STATEMENT OF INVESTMENTS
May 31, 2009 (Unaudited) |
| | |
| | Principal | |
| Negotiable Bank Certificates of Deposit—68.0% | Amount ($) | Value ($) |
| Allied Irish Banks (Yankee) | | |
| 1.65%—2.00%, 6/4/09—7/8/09 | 150,000,000 | 150,002,253 |
| Bank of America N.A. | | |
| 0.80%, 11/23/09 | 150,000,000 | 150,000,000 |
| Bank of Ireland (Yankee) | | |
| 1.80%, 6/11/09 | 350,000,000 a | 350,000,000 |
| Bank of Tokyo-Mitsubishi Ltd. (Yankee) | | |
| 0.62%—1.10%, 6/8/09—8/14/09 | 525,000,000 | 525,000,000 |
| Barclays Bank PLC (Yankee) | | |
| 0.76%—2.00%, 6/5/09—9/18/09 | 585,000,000 | 585,000,000 |
| Bayerische Hypo-und Vereinsbank AG (Yankee) | | |
| 0.52%—0.53%, 6/8/09—6/19/09 | 500,000,000 | 500,000,389 |
| BNP Paribas (Yankee) | | |
| 0.95%, 7/13/09 | 500,000,000 | 500,000,000 |
| Calyon (Yankee) | | |
| 0.95%—1.20%, 6/2/09—7/2/09 | 350,000,000 | 350,000,000 |
| Canadian Imperial Bank of Commerce (Yankee) | | |
| 0.85%, 7/7/09 | 200,000,000 | 200,000,000 |
| Citibank (South Dakota) N.A., Sioux Falls | | |
| 1.15%—1.28%, 6/18/09—7/1/09 | 557,000,000 | 557,000,000 |
| Credit Industriel et Commercial (Yankee) | | |
| 0.93%—1.00%, 7/28/09—8/3/09 | 200,000,000 | 200,002,452 |
| Credit Suisse (Yankee) | | |
| 1.42%, 7/9/09 | 100,000,000 | 100,000,000 |
| DZ Bank AG (Yankee) | | |
| 0.65%, 8/5/09 | 50,000,000 | 50,000,000 |
| Fortis Bank (Yankee) | | |
| 0.95%, 8/17/09 | 50,000,000 | 50,000,000 |
| ING Bank N.V. (London) | | |
| 0.87%—0.93%, 8/7/09—8/10/09 | 465,000,000 | 465,000,000 |
| Intesa Sanpaolo SpA (Yankee) | | |
| 0.50%, 8/10/09 | 250,000,000 | 250,000,000 |
| Lloyds TSB Bank PLC (Yankee) | | |
| 0.98%—1.10%, 7/6/09—7/31/09 | 450,000,000 | 450,003,878 |
| Mizuho Corporate Bank (Yankee) | | |
| 0.95%, 6/9/09 | 400,000,000 | 400,000,000 |
The Fund 7
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| | |
| | Principal | |
| Negotiable Bank Certificates of Deposit (continued) | Amount ($) | Value ($) |
| Natixis (Yankee) | | |
| 1.50%, 7/1/09 | 500,000,000 | 500,000,000 |
| Royal Bank of Scotland PLC (Yankee) | | |
| 0.94%—1.00%, 8/6/09—8/13/09 | 560,000,000 | 560,000,000 |
| Sanpaolo IMI U.S. Financial Co. (Yankee) | | |
| 1.00%—1.05%, 6/8/09—6/11/09 | 300,000,000 | 300,000,000 |
| Societe Generale (Yankee) | | |
| 0.95%, 7/13/09 | 350,000,000 | 350,000,000 |
| Sumitomo Mitsui Banking Corporation (Yankee) | | |
| 0.83%, 8/5/09 | 200,000,000 | 200,000,000 |
| Svenska Handelsbanken (Yankee) | | |
| 0.95%, 6/9/09 | 500,000,000 | 500,001,108 |
| Total Negotiable Bank Certificates of Deposit | | |
| (cost $8,242,010,080) | | 8,242,010,080 |
| |
| Commercial Paper—20.3% | | |
| Abbey National North America LLC | | |
| 0.45%, 8/5/09 | 500,000,000 | 499,593,750 |
| CAFCO LLC | | |
| 0.48%, 8/11/09 | 141,000,000 a | 140,866,520 |
| Clipper Receivables Co. | | |
| 1.30%, 7/7/09 | 300,000,000 a | 299,610,000 |
| Danske Corp., Inc. | | |
| 0.40%—1.05%, 6/9/09—8/28/09 | 490,000,000 a | 489,699,556 |
| Gemini Securitization Corp., LLC | | |
| 0.38%, 8/21/09 | 25,000,000 a | 24,978,625 |
| General Electric Co. | | |
| 0.18%, 6/1/09 | 200,000,000 | 200,000,000 |
| Govco Inc. | | |
| 0.45%, 8/11/09—8/17/09 | 300,000,000 a | 299,718,750 |
| ING (US) Funding LLC | | |
| 0.40%—0.60%, 8/3/09—8/31/09 | 107,000,000 | 106,888,622 |
8
| | |
| | Principal | |
| Commercial Paper (continued) | Amount ($) | Value ($) |
| Lloyds TSB Bank PLC | | |
| 1.11%, 7/7/09 | 100,000,000 | 99,889,000 |
| LMA Americas LLC | | |
| 0.50%, 8/18/09 | 100,000,000 a | 99,891,667 |
| Societe Generale N.A. Inc. | | |
| 0.60%, 8/10/09 | 200,000,000 | 199,766,667 |
| Total Commercial Paper | | |
| (cost $2,460,903,157) | | 2,460,903,157 |
| |
| Corporate Note—3.3% | | |
| Bank of America Corp. | | |
| 0.42%, 6/1/09 | | |
| (cost $400,000,000) | 400,000,000 | 400,000,000 |
| |
| U.S. Government Agencies—5.8% | | |
| Federal Home Loan Bank | | |
| 0.07%, 6/1/09 | 218,000,000 | 218,000,000 |
| Federal National Mortgage Association | | |
| 1.10%, 7/22/09 | 490,000,000 b,c | 489,844,198 |
| Total U.S. Government Agencies | | |
| (cost $707,844,198) | | 707,844,198 |
| |
| Repurchase Agreements—2.8% | | |
| Barclays Financial LLC | | |
| 0.17%, dated 5/29/09, due 6/1/09 | | |
| in the amount of $136,001,927 | | |
| (fully collateralized by $87,294,100 | | |
| U.S. Treasury Bonds, 8%, due 11/15/21, | | |
| value $118,862,569 and $19,440,500 | | |
| U.S. Treasury Notes, 4.625%, due 11/15/09, | | |
| value $19,857,489) | 136,000,000 | 136,000,000 |
The Fund 9
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| | |
| | Principal | |
| Repurchase Agreements (continued) | Amount ($) | Value ($) |
| UBS Securities LLC | | |
| 0.16%, dated 5/29/09, due 6/1/09 | | |
| in the amount of $200,002,667 | | |
| (fully collateralized by $204,035,000 | | |
| U.S. Treasury Bill, due 7/16/09, | | |
| value $204,004,402) | 200,000,000 | 200,000,000 |
| Total Repurchase Agreements | | |
| (cost $336,000,000) | | 336,000,000 |
| |
| Total Investments (cost $12,146,757,435) | 100.2% | 12,146,757,435 |
| |
| Liabilities, Less Cash and Receivables | (.2%) | (19,361,993) |
| |
| Net Assets | 100.0% | 12,127,395,442 |
|
| a Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in |
| transactions exempt from registration, normally to qualified institutional buyers.At May 31, 2009, these securities |
| amounted to $1,704,765,118 or 14.1% of net assets. |
| b On September 7, 2008, the Federal Housing Finance Agency (FHFA) placed Federal National Mortgage |
| Association and Federal Home Loan Mortgage Corporation into conservatorship with FHFA as the conservator.As |
| such, the FHFA will oversee the continuing affairs of these companies. |
| c Variable rate security—interest rate subject to periodic change. |
| | | |
| Portfolio Summary (Unaudited)† | | |
| |
| | Value (%) | | Value (%) |
| Banking | 74.6 | Asset-Backed/Certificates-Other | 3.3 |
| Foreign/Governmental | 8.2 | Repurchase Agreements | 2.8 |
| U.S. Government Agencies | 5.8 | Asset-Backed/Multi-Seller Programs | 1.4 |
| Finance | 4.1 | | 100.2 |
| |
| † Based on net assets. | | | |
| See notes to financial statements. | | | |
10
|
| STATEMENT OF ASSETS AND LIABILITIES |
| May 31, 2009 (Unaudited) |
| | |
| | Cost | Value |
| Assets ($): | | |
| Investments in securities—See Statement of | | |
| Investments—Note 1(b) | 12,146,757,435 | 12,146,757,435 |
| Cash | | 4,664,191 |
| Interest receivable | | 16,813,548 |
| Prepaid expenses | | 1,989,575 |
| | | 12,170,224,749 |
| Liabilities ($): | | |
| Due to The Dreyfus Corporation and affiliates—Note 2(c) | | 8,601,859 |
| Payable for shares of Common Stock redeemed | | 33,786,722 |
| Accrued expenses | | 440,726 |
| | | 42,829,307 |
| Net Assets ($) | | 12,127,395,442 |
| Composition of Net Assets ($): | | |
| Paid-in capital | | 12,128,349,373 |
| Accumulated net realized gain (loss) on investments | | (953,931) |
| Net Assets ($) | | 12,127,395,442 |
| |
| |
| Net Asset Value Per Share | | |
| | Class A | Class B |
| Net Assets ($) | 1,480,054,868 | 10,647,340,574 |
| Shares Outstanding | 1,480,165,012 | 10,648,184,361 |
| Net Asset Value Per Share ($) | 1.00 | 1.00 |
| |
| See notes to financial statements. | | |
The Fund 11
|
| STATEMENT OF OPERATIONS |
| Six Months Ended May 31, 2009 (Unaudited) |
| |
| Investment Income ($): | |
| Interest Income | 83,320,901 |
| Expenses: | |
| Management fee—Note 2(a) | 29,620,452 |
| Shareholder servicing costs—Note 2(c) | 16,289,061 |
| Distribution, service and prospectus fees—Note 2(b) | 11,915,772 |
| Treasury insurance expense—Note 1(e) | 2,386,244 |
| Registration fees | 522,473 |
| Directors’ fees and expenses—Note 2(d) | 299,802 |
| Custodian fees—Note 2(c) | 200,163 |
| Shareholders’ reports | 34,928 |
| Professional fees | 47,513 |
| Miscellaneous | 62,650 |
| Total Expenses | 61,379,058 |
| Less—reduction in expenses | |
| due to undertaking—Note 2(a) | (2,678,807) |
| Less—reduction in shareholder servicing costs | |
| due to undertaking—Note 2(c) | (439,670) |
| Less—reduction in fees due to | |
| earnings credits—Note 1(b) | (43,879) |
| Net Expenses | 58,216,702 |
| Investment Income—Net, representing net increase | |
| in net assets resulting from operations | 25,104,199 |
| |
| See notes to financial statements. | |
12
STATEMENT OF CHANGES IN NET ASSETS
| | |
| | Six Months Ended | |
| | May 31, 2009 | Year Ended |
| | (Unaudited) | November 30, 2008 |
| Operations ($): | | |
| Investment income—net | 25,104,199 | 279,842,381 |
| Net realized gain (loss) on investments | — | 1,150,315 |
| Net Increase (Decrease) in Net Assets | | |
| Resulting from Operations | 25,104,199 | 280,992,696 |
| Dividends to Shareholders from ($): | | |
| Investment income—net: | | |
| Class A Shares | (4,356,893) | (37,670,113) |
| Class B Shares | (20,747,306) | (242,172,268) |
| Total Dividends | (25,104,199) | (279,842,381) |
| Capital Stock Transactions ($1.00 per share): | | |
| Net proceeds from shares sold: | | |
| Class A Shares | 2,357,355,967 | 5,486,097,415 |
| Class B Shares | 9,814,743,450 | 24,686,103,249 |
| Dividends reinvested: | | |
| Class A Shares | 4,326,548 | 37,128,321 |
| Class B Shares | 20,607,650 | 240,482,997 |
| Cost of shares redeemed: | | |
| Class A Shares | (2,194,257,548) | (5,250,170,596) |
| Class B Shares | (9,053,039,130) | (24,153,341,897) |
| Increase (Decrease) in Net Assets | | |
| from Capital Stock Transactions | 949,736,937 | 1,046,299,489 |
| Total Increase (Decrease) in Net Assets | 949,736,937 | 1,047,449,804 |
| Net Assets ($): | | |
| Beginning of Period | 11,177,658,505 | 10,130,208,701 |
| End of Period | 12,127,395,442 | 11,177,658,505 |
| |
| See notes to financial statements. | | |
The Fund 13
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the fiscal periods indicated. All information reflects financial results for a single fund share. 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, 2009 | | Year Ended November 30, | |
| Class A Shares | (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
| Per Share Data ($): | | | | | | |
| Net asset value, | | | | | | |
| beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| Investment Operations: | | | | | | |
| Investment income—net | .003 | .027 | .045 | .042 | .023 | .006 |
| Distributions: | | | | | | |
| Dividends from | | | | | | |
| investment income—net | (.003) | (.027) | (.045) | (.042) | (.023) | (.006) |
| Net asset value, | | | | | | |
| end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| Total Return (%) | .64a | 2.75 | 4.64 | 4.28 | 2.32 | .56 |
| Ratios/Supplemental | | | | | | |
| Data (%): | | | | | | |
| Ratio of total expenses | | | | | | |
| to average net assets | .79a | .76 | .79 | .78 | .79 | .78 |
| Ratio of net expenses | | | | | | |
| to average net assets | .79a,b | .76b | .79 | .78b | .79 | .78 |
| Ratio of net investment | | | | | | |
| income to average | | | | | | |
| net assets | .62a | 2.66 | 4.54 | 4.18 | 2.28 | .55 |
| Net Assets, | | | | | | |
| end of period | | | | | | |
| ($ x 1,000) | 1,480,055 | 1,312,626 | 1,039,268 | 1,022,572 | 1,094,031 | 1,153,901 |
| |
| a | Annualized. |
| b | Expense waivers and/or reimbursements amounted to less than .01%. |
| See notes to financial statements. |
14
| | | | | | | |
| | Six Months Ended | | | | | |
| | May 31, 2009 | | Year Ended November 30, | |
| Class B Shares | | (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
| Per Share Data ($): | | | | | | |
| Net asset value, | | | | | | | |
| beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| Investment Operations: | | | | | | |
| Investment income—net | .002 | .024 | .043 | .040 | .021 | .003 |
| Distributions: | | | | | | | |
| Dividends from | | | | | | | |
| investment income—net | (.002) | (.024) | (.043) | (.040) | (.021) | (.003) |
| Net asset value, | | | | | | | |
| end of period | | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| Total Return (%) | | .40a | 2.48 | 4.40 | 4.05 | 2.09 | .34 |
| Ratios/Supplemental | | | | | | |
| Data (%): | | | | | | | |
| Ratio of total expenses | | | | | | |
| to average net assets | 1.07a | 1.04 | 1.03 | 1.02 | 1.03 | 1.03 |
| Ratio of net expenses | | | | | | |
| to average net assets | 1.01a | 1.03 | 1.02 | 1.01 | 1.01 | 1.00 |
| Ratio of net investment | | | | | | |
| income to average | | | | | | |
| net assets | | .40a | 2.43 | 4.32 | 3.98 | 2.06 | .32 |
| Net Assets, | | | | | | | |
| end of period | | | | | | | |
| ($ x 1,000) | 10,647,341 | 9,865,033 | 9,090,941 | 8,489,944 | 7,516,365 | 4,956,821 |
| |
| a Annualized. | | | | | | | |
| See notes to financial statements. | | | | | |
The Fund 15
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
General Money Market Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified open-end management investment company. The fund’s investment objective is to provide investors with as high a level of current income as is consistent with the preservation of capital. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser.
MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares. The fund is authorized to issue 25.5 billion shares of $.001 par value Common Stock.The fund currently offers two classes of shares: Class A (7 billion shares authorized) and Class B (18.5 billion shares authorized). Class A and Class B shares are identical except for the services offered to and the expenses borne by each class, the allocation of certain transfer agency costs and certain voting rights. Class A shares are subject to a Service Plan adopted pursuant to Rule 12b-1 under the Act, Class B shares are subject to a Distribution Plan adopted pursuant to Rule 12b-1 under the Act and Class A and Class B shares are subject to a Shareholder Services Plan. In addition, Class B shares are charged directly for sub-accounting services provided by Service Agents (a securities dealer, financial institution or other industry professional) at an annual rate of .05% of the value of the average daily net assets of Class B shares. During the period ended May 31, 2009, sub-accounting service fees amounted to $2,612,173 for Class B shares and are included in shareholder servicing costs. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
It is the fund’s policy to maintain a continuous net asset value per share of $1.00; the fund has adopted certain investment, portfolio valuation
16
and dividend and distribution policies to enable it to do so.There is assurance, however, that the fund will be able to maintain a stable asset value per share of $1.00.
The fund’s financial statements are prepared in accordance with U. generally accepted accounting principles, which may require the of management estimates and assumptions. Actual results could differ from those estimates.
The fund enters into contracts that contain a variety of indemnifica tions. The fund’s maximum exposure under these arrangements unknown.The fund does not anticipate recognizing any loss related these arrangements.
(a) Portfolio valuation: Investments in securities are valued at amor tized cost, in accordance with Rule 2a-7 of the Act, which has been determined by the Board of Directors to represent the fair value of fund’s investments.
The fund adopted Statement of Financial Accounting Standards No. “FairValue Measurements” (“FAS 157”). FAS 157 establishes an author itative definition of fair value, sets out a framework for measuring value, and requires additional disclosures about fair value measurements
Various inputs are used in determining the value of the fund’s invest ments relating to FAS 157.These inputs are summarized in the three broad levels listed below.
| | Level 1—quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds,
credit risk, etc.).
Level 3—significant unobservable inputs (including the fund’s own
assumptions in determining the fair value of investments). |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those secu-
The Fund 17
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
rities. For example, money market securities are valued using amortized cost, in accordance with rules under the Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
The following is a summary of the inputs used as of May 31, 2009 in valuing the fund’s investments:
| |
| | Investments in |
| Valuation Inputs | Securities ($) |
| Level 1—Quoted Prices | — |
| Level 2—Other Significant Observable Inputs | 12,146,757,435 |
| Level 3—Significant Unobservable Inputs | — |
| Total | 12,146,757,435 |
In April 2009, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position No. 157-4,“Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with FAS 157, when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate a transaction is not orderly. FSP 157-4 is effective for fiscal years and interim periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FSP 157-4 will have on the fund’s financial statement disclosures.
(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from the settlement date and recognized on the accrual basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Cost of investments represents amortized cost.
18
The fund has arrangements with the custodian and cash management bank whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.
The fund may enter into repurchase agreements with financial institutions deemed to be creditworthy by the Manager, subject to the seller’s agreement to repurchase and the fund’s agreement to resell such securities at a mutually agreed upon price. Securities purchased subject to repurchase agreements are deposited with the fund’s custodian and, pursuant to the terms of the repurchase agreement, must have an aggregate market value greater than or equal to the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the fund will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the fund maintains the right to sell the underlying securities at market value and may claim any resulting loss aga inst the seller.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends from investment income-net on each business day. Such dividends are paid monthly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains.
(d) 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
The Fund 19
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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.
As of and during the period ended May 31, 2009, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.
Each of the tax years in the three-year period ended November 30, 2008 remains subject to examination by the Internal Revenue Service and state taxing authorities.
The fund has an unused capital loss carryover of $953,931 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to November 30, 2008. If not applied, the carryover expires in fiscal 2013.
The tax character of distributions paid to shareholders during the fiscal year ended November 30, 2008 was all ordinary income. The tax character of current year distributions will be determined at the end of the current fiscal year.
At May 31, 2009, 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).
(e) Treasury’s Temporary Guarantee Program: The fund has entered into a Guarantee Agreement with the United States Department of the Treasury (the “Treasury”) to participate in the Treasury’s Temporary Guarantee Program for Money Market Funds (the “Program”).
Under the Program, the Treasury guarantees the share price of shares of the fund held by shareholders as of September 19, 2008 at $1.00 per share if the fund’s net asset value per share falls below $0.995 (a “Guarantee Event”) and the fund liquidates. Recovery under the Program is subject to certain conditions and limitations.
20
Fund shares acquired by investors after September 19, 2008 that increase the number of fund shares the investor held at the close of business on September 19, 2008 are not eligible for protection under the Program. In addition, fund shares acquired by investors who did not hold fund shares at the close of business on September 19, 2008 are not eligible for protection under the Program.
The Program, which was originally set to expire on December 18, 2008, was initially extended by the Treasury until April 30, 2009 and has been further extended by the Treasury until September 18, 2009, after which the Secretary of the Treasury will review the need for, and terms of, the Program. Participation in the initial term and the extended period of the Program required a payment to the Treasury in the amount of .01%, .015% and .015%, respectively, of the fund’s shares outstanding as of September 19, 2008 (valued at $1.00 per share). This expense is being borne by the fund without regard to any expense limitation currently in effect.
NOTE 2—Management Fee and Other Transactions with Affiliates:
(a) Pursuant to a management agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .50% of the value of the fund’s average daily net assets and is payable monthly. The Agreement provides that if in any full fiscal year the aggregate expenses of the fund, exclusive of taxes, brokerage fees, interest on borrowings and extraordinary expenses, exceed 1 1 / 2% of the value of the fund’s average daily net assets, the fund may deduct from payments to be made to the Manager, or the Manager will bear such excess expense. During the period ended May 31, 2009, there was no expense reimbursement pursuant to the Agreement.
The Manager has undertaken to reimburse expenses in the event that current yields drop below a certain level.This undertaking is voluntary
The Fund 21
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
and not contractual and may be terminated at any time.The expense reimbursement pursuant to the undertaking amounted to $2,678,807 for Class B shares during the period ended May 31, 2009.
(b) Under the Service Plan with respect to Class A (the “Plan”), adopted pursuant to Rule 12b-1 under the Act, Class A shares bear directly the cost of preparing, printing and distributing prospectuses and statements of additional information and implementing and operating the Plan, such aggregate amount not to exceed in any fiscal year of the fund, the greater of $100,000 or .005% of the average daily net assets of Class A. In addition, Class A shares pay the Distributor for distributing their shares, servicing shareholder accounts (“Servicing”) and advertising and marketing relating to Class A shares at an aggregate annual rate of .20% of the value of the average daily net assets of Class A. The Distributor may pay one or more Service Agents a fee in respect of Class A shares owned by shareholders with whom the Service Agent has a Servicing relationship or for whom the Service Agent is the dealer or holder of record.The schedule of such fees and the basis upon which such fees will be paid shall be determined from time to time by the Distributor. If a holder of Class A shares ceases to be a client of a Service Agent, but continues to hold Class A shares, the Distributor will be permitted to act as a Service Agent in respect of such fund shareholders and receive payments under the Plan for Servicing.The fees payable for Servicing are payable without regard to actual expenses incurred. During the period ended May 31, 2009, Class A shares were charged $1,407,360 pursuant to the Plan.
Under the Distribution Plan with respect to Class B (“Class B Distribution Plan”) adopted pursuant to Rule 12b-1 under the Act, Class B shares bear directly the costs of preparing, printing and distributing prospectuses and statements of additional information and of implementing and operating the Class B Distribution Plan, such aggregate amount not to exceed in any fiscal year of the fund the greater of $100,000 or .005% of the average daily net assets of Class B. In addition, Class B shares reimburse the Distributor for payments made to third parties for distributing Class B shares at an annual rate not to
22
exceed .20% of the value of the average daily net assets of Class B. During the period ended May 31, 2009, Class B shares were charged $10,508,412 pursuant to the Class B Distribution Plan.
(c) Under the Shareholder Services Plan with respect to Class A (“Class A Shareholder Services Plan”), Class A shares reimburse the Distributor an amount not to exceed an annual rate of .25% of the value of the average daily net assets of Class A for certain allocated expenses of providing personal services and/or maintaining shareholder accounts.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding Class A shares and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended May 31, 2009, Class A shares were charged $81,423 pursuant to the Class A Shareholder Services Plan.
Under the Shareholder Services Plan with respect to Class B (“Class B Shareholder Services Plan”), Class B shares pay the Distributor at an annual rate of .25% of the value of the average daily net assets of Class B shares for servicing shareholder accounts.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding Class B shares and providing reports and other information, and services related to the maintenance of shareholder accounts.The Distributor may make payments to Service Agents in respect of these services.The Distributor determines the amounts to be paid to Service Agents.
The Manager had undertaken from December 1, 2008 through May 31, 2009 to reduce the expenses of Class B shares, if the aggregate expenses of Class B shares, exclusive of taxes, brokerage fees, interest on borrowings and extraordinary expenses, exceed an annual rate of 1.02% of the value of the average daily net assets of Class B shares. Such expense limitations are voluntary, temporary and may be terminated at any time. During the period ended May 31, 2009, Class B shares were charged $13,060,864 pursuant to the Class B Shareholder Services Plan, of which $439,670 was reimbursed by the Manager.
The Fund 23
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended May 31, 2009, the fund was charged $144,453 pursuant to the transfer agency agreement.
The fund compensates The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, under a cash management agreement for performing cash management services related to fund subscriptions and redemptions. During the period ended May 31, 2009, the fund was charged $12,927 pursuant to the cash management agreement. These fees were offset by earnings credits pursuant to the cash management agreement.
The fund also compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. During the period ended May 31, 2009, the fund was charged $200,163 pursuant to the custody agreement.
During the period ended May 31, 2009, the fund was charged $3,291 for services performed by the Chief Compliance Officer.
The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $5,148,760, Rule 12b-1 distribution fees $2,057,465, shareholder services plan fees $2,719,097, custody fees $168,361, chief compliance officer fees $1,150 and transfer agency per account fees $49,822, which are offset against an expense reimbursement currently in effect in the amount of $1,542,796.
(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
24
| |
| Item 2. | Code of Ethics. |
| | Not applicable. |
| Item 3. | Audit Committee Financial Expert. |
| | Not applicable. |
| Item 4. | Principal Accountant Fees and Services. |
| | Not applicable. |
| Item 5. | Audit Committee of Listed Registrants. |
| | Not applicable. |
| Item 6. | Investments. |
| (a) | Not applicable. |
| Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management |
| | Investment Companies. |
| | Not applicable. |
| Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
| | Not applicable. |
| Item 9. | Purchases of Equity Securities by Closed-End Management Investment Companies and |
| | Affiliated Purchasers. |
| | Not applicable. [CLOSED END FUNDS ONLY] |
| Item 10. | Submission of Matters to a Vote of Security Holders. |
| | There have been no material changes to the procedures applicable to Item 10. |
| Item 11. | Controls and Procedures. |
(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
3
Item 12. Exhibits.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.
4
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
General Money Market Fund, Inc.
| |
| By: | /s/ J. David Officer |
| | J. David Officer, |
| President |
| |
| Date: | July 23, 2009 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| |
| By: | /s/ J. David Officer |
| | J. David Officer, |
| President |
| |
| Date: | July 23, 2009 |
| |
| By: | /s/ James Windels |
| | James Windels, |
| Treasurer |
| |
| Date: | July 23, 2009 |
5
EXHIBIT INDEX
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)
6
