UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
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: | 11/30/09 | |
FORM N-CSR
| |
| Item 1. | Reports to Stockholders. |
-2-
General Money Market Fund, Inc.
ANNUAL REPORT November 30, 2009
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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 Chairman and 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 |
| 26 | Report of Independent Registered Public Accounting Firm |
| 27 | Important Tax Information |
| 28 | Information About the Review and Approval of the Fund’s Management Agreement |
| 32 | Board Members Information |
| 34 | Officers of the Fund |
| | FOR MORE INFORMATION |
| | Back Cover |
General Money
Market Fund, Inc.
The Fund
A LETTER FROM THE CHAIRMAN AND CEO
Dear Shareholder:
We are pleased to present this annual report for General Money Market Fund, Inc., covering the 12-month period from December 1, 2008, through November 30, 2009.
Evidence has continued to accumulate that the U.S. recession is over and sustained economic recoveries have begun worldwide. U.S. Government liquidity-support and stimulus programs, along with an aggressively accommodative monetary policy have so far succeeded in calming the financial crisis, ending the recession and sparking the beginning of a global expansion.As 2009 draws to a close, we expect a continuation of the current sustained rallies among fixed-income and equity asset classes, along with low yields and outflows of money fund assets into these other asset classes.
While money market yields are unlikely to improve anytime soon, we continue to stress the importance of both municipal and taxable money market mutual funds as a haven of price stability and liquidity for risk-averse investors. Is your cash allocation properly positioned for the next phase of this economic cycle? Talk to your financial advisor, who can help you make that determination and prepare for the challenges and opportunities that lie ahead.
For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance.
Thank you for your continued confidence and support.
Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation
December 15, 2009
2
DISCUSSION OF FUND PERFORMANCE
For the period of December 1, 2008, through November 30, 2009, as provided by Bernard W. Kiernan, Jr., Senior Portfolio Manager
Fund and Market Performance Overview
For the 12-month period ended November 30, 2009, General Money Market Fund’s Class A shares produced a yield of 0.33%, and its Class B shares produced a yield of 0.23%.Taking into account the effects of compounding, the fund’s Class A and Class B shares produced effective yields of 0.33% and 0.23%, respectively.1
Money market yields declined along with short-term interest rates and then remained near historically low levels as the U.S. government and Federal Reserve Board (the “Fed”) addressed a severe recession and global credit crisis.
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 i n domestic or dollar-denominated foreign bank obligations.
Money Market Yields Fell to Record Lows
The reporting period began in the midst of a global financial crisis and severe recession. In response, the Fed pumped liquidity into the bank-
The Fund 3
DISCUSSION OF FUND PERFORMANCE (continued)
ing system and eased monetary policy aggressively, driving the overnight federal funds rate to an unprecedented low of 0% to 0.25% by the end of 2008. As a result, money market yields fell to and remained near historical lows.
The U.S. government responded with a number of its own remedial measures, including the Temporary Guarantee Program for Money Market Funds, which remained in effect through most of the reporting period before ending on September 18, 2009. This measure was designed to promote liquidity in the commercial paper market.
Although economic conditions continued to deteriorate in early 2009, investor sentiment began to improve in March when signs emerged that credit markets were recovering. Stocks and corporate bonds staged impressive rebounds, and the three-month London Interbank Offered Rate (LIBOR) retreated toward normalized levels.
The U.S. economy sent mixed signals in the spring of 2009. For example, existing home sales and prices increased in May, but the unemployment rate rose to its highest level in 26 years. It later was reported that the U.S. economy contracted at a 0.7% annualized rate between April and June, a much milder decline than the previous quarter, lending credence to forecasts that the recession was nearing an end.
Residential construction improved in July, and August saw the first expansion of manufacturing activity in more than 18 months. Consumer spending increased in August by 1.3%, the largest gain in more than seven years, due in part to the U.S. government’s Cash for Clunkers automobile purchasing program. In September, pending home sales reached their highest level since March 2007. Yet, the unemployment rate continued to creep higher.
October also experienced gradual economic improvement. Positive news included a return to growth for the U.S. economy, with U.S. GDP expanding at a 2.2% annualized rate in the third quarter, its first quarterly gain in more than a year.While pending home sales reached its highest level in almost three years, distressed sales accounted for more than 30% of those transactions.The unemployment rate moved to 10.2% in October, its highest level since the early 1980s.
4
In November, investors were encouraged by a slight dip in the unemployment rate to 10.0%. The manufacturing sector expanded and foreclosure activity in the housing sector dipped, with each indicator showing improvement for the fourth straight month.
Quality and Liquidity Still Our Priority
With yields at historically low levels, most money market funds maintained relatively defensive footings during the reporting period, and the industry’s average weighted maturity remained substantially shorter than historical averages. The fund was no exception; we set its weighted average maturity in a position that was relatively short as interest rates declined, and then roughly in line with industry averages for most of 2009.We also focused exclusively on money market instruments meeting our stringent credit-quality criteria.
Despite continued signs of economic improvement, the Fed has repeatedly indicated that “economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.” In addition, the Treasury Department extended the Troubled Asset Relief Program (“TARP”) until October 2010 as a precaution against unforeseen problems. Until we see more convincing evidence that the credit markets have healed and the Fed is prepared to raise interest rates, we intend to maintain the fund’s focus on credit quality and liquidity.
December 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 | 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 A and |
| | 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 A shares would have produced a yield |
| | and an effective yield of 0.17%, and Class B shares would have produced a yield and an |
| | effective yield of -0.12%. |
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 June 1, 2009 to November 30, 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 November 30, 2009
| | |
| | Class A | Class B |
| Expenses paid per $1,000† | $ 2.26 | $ 2.21 |
| Ending value (after expenses) | $1,000.20 | $1,000.20 |
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 November 30, 2009
| | |
| | Class A | Class B |
| Expenses paid per $1,000† | $ 2.28 | $ 2.23 |
| Ending value (after expenses) | $1,022.81 | $1,022.86 |
|
| † Expenses are equal to the fund’s annualized expense ratio of .45% for Class A and .44% for Class B multiplied by |
| the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
6
STATEMENT OF INVESTMENTS
November 30, 2009
| | |
| | Principal | |
| Negotiable Bank Certificates of Deposit—60.5% | Amount ($) | Value ($) |
| Allied Irish Banks (Yankee) | | |
| 1.00%, 1/5/10 | 50,000,000 | 50,000,000 |
| Banco Bilbao Vizcaya Argentaria Puerto Rico (Yankee) | | |
| 0.32%—0.33%, 3/29/10—4/13/10 | 200,000,000 | 200,000,000 |
| Bank of Ireland (Yankee) | | |
| 0.93%, 12/23/09 | 150,000,000 a | 150,000,000 |
| Bank of Tokyo-Mitsubishi Ltd. (Yankee) | | |
| 0.25%, 1/8/10—2/12/10 | 350,000,000 | 350,000,000 |
| Barclays Bank PLC (Yankee) | | |
| 0.42%—0.55%, 3/22/10—5/12/10 | 250,000,000 | 250,000,000 |
| Bayerische Hypo-und Vereinsbank AG (Yankee) | | |
| 0.45%, 2/5/10 | 400,000,000 | 400,000,000 |
| Calyon NA (Yankee) | | |
| 0.25%, 1/14/10—2/16/10 | 500,000,000 | 500,000,000 |
| Credit Industriel et Commercial (London) (Yankee) | | |
| 0.33%—0.37%, 2/8/10 | 600,000,000 | 600,005,744 |
| DZ Bank AG (Yankee) | | |
| 0.27%, 12/15/09 | 155,000,000 | 155,000,000 |
| Fortis Bank (Yankee) | | |
| 0.26%, 1/29/10 | 600,000,000 | 600,000,000 |
| ING Bank N.V. (London) | | |
| 0.27%—0.28%, 1/19/10—2/16/10 | 650,000,000 | 650,000,000 |
| Lloyds TSB Bank PLC (Yankee) | | |
| 0.20%, 12/14/09 | 600,000,000 | 600,000,000 |
| Mizuho Corporate Bank (Yankee) | | |
| 0.24%—0.25%, 1/19/10—2/16/10 | 600,000,000 | 600,000,000 |
| Natixis (Yankee) | | |
| 0.30%, 1/5/10—2/22/10 | 600,000,000 | 600,000,000 |
| Royal Bank of Scotland PLC (Yankee) | | |
| 0.28%, 2/11/10 | 500,000,000 | 500,000,000 |
| Societe Generale (Yankee) | | |
| 0.23%—0.24%, 1/4/10—3/1/10 | 600,000,000 | 600,000,000 |
| Sumitomo Mitsui Banking Corporation (Yankee) | | |
| 0.25%, 2/2/10 | 200,000,000 | 200,003,497 |
The Fund 7
STATEMENT OF INVESTMENTS (continued)
| | |
| | Principal | |
| Negotiable Bank Certificates of Deposit (continued) | Amount ($) | Value ($) |
| UBS AG (Yankee) | | |
| 0.23%—0.28%, 12/28/09—1/20/10 | 600,000,000 | 600,000,000 |
| UniCredito Italiano SpA (Yankee) | | |
| 0.25%, 12/4/09 | 250,000,000 | 250,000,000 |
| Total Negotiable Bank Certificates of Deposit | | |
| (cost $7,855,009,241) | | 7,855,009,241 |
| |
| Commercial Paper—6.6% | | |
| Abbey National North America LLC | | |
| 0.14%, 12/1/09 | 300,000,000 | 300,000,000 |
| Banco Bilbao Vizcaya Argentaria Puerto Rico | | |
| 0.32%—0.34%, 4/15/10—5/5/10 | 185,000,000 | 184,764,806 |
| General Electric Capital Corp. | | |
| 0.23%, 2/4/10 | 75,000,000 | 74,968,854 |
| General Electric Capital Services Inc. | | |
| 0.23%, 2/4/10 | 100,000,000 | 99,958,472 |
| General Electric Co. | | |
| 0.15%, 12/1/09 | 200,000,000 | 200,000,000 |
| Total Commercial Paper | | |
| (cost $859,692,132) | | 859,692,132 |
| |
| Asset-Backed Commercial Paper—11.2% | | |
| Atlantis One Funding Corp. | | |
| 0.14%—0.23%, 12/1/09—2/11/10 | 400,000,000 a | 399,954,000 |
| Cancara Asset Securitisation Ltd. | | |
| 0.32%, 12/17/09 | 200,000,000 a | 199,971,556 |
| CHARTA LLC | | |
| 0.32%, 1/13/10—1/14/10 | 75,000,000 a | 74,970,889 |
| CIESCO LLC | | |
| 0.24%, 2/8/10 | 150,000,000 a | 149,931,000 |
| CRC Funding LLC | | |
| 0.32%, 1/13/10 | 250,000,000 a | 249,904,444 |
8
| | |
| | Principal | |
| Asset-Backed Commercial Paper (continued) | Amount ($) | Value ($) |
| Edison Asset Securitization LLC | | |
| 0.23%, 2/1/10 | 85,000,000 a | 84,966,331 |
| Govco Inc. | | |
| 0.27%, 12/3/09—12/8/09 | 300,000,000 a | 299,989,875 |
| Total Asset-Backed Commercial Paper | | |
| (cost $1,459,688,095) | | 1,459,688,095 |
| |
| Corporate Notes—7.9% | | |
| Bank of America Corp. | | |
| 0.29%, 12/1/09 | 425,000,000 | 425,000,000 |
| Barclays Bank PLC | | |
| 0.69%, 12/19/09 | 350,000,000 b | 350,000,000 |
| Credit Suisse | | |
| 0.32%, 12/9/09 | 250,000,000 b | 250,000,000 |
| Total Corporate Notes | | |
| (cost $1,025,000,000) | | 1,025,000,000 |
| |
| U.S. Government Agency—3.8% | | |
| Federal National Mortgage Association | | |
| 0.28%, 1/21/10 | | |
| (cost $489,891,797) | 490,000,000 b,c | 489,891,797 |
| |
| Time Deposits—9.7% | | |
| Commerzbank AG (Grand Cayman) | | |
| 0.15%, 12/1/09 | 500,000,000 | 500,000,000 |
| DnB NOR Bank ASA (Grand Cayman) | | |
| 0.15%, 12/1/09 | 265,000,000 | 265,000,000 |
| Nordea Bank Finland PLC (Grand Cayman) | | |
| 0.14%, 12/1/09 | 500,000,000 | 500,000,000 |
| Total Time Deposits | | |
| (cost $1,265,000,000) | | 1,265,000,000 |
The Fund 9
STATEMENT OF INVESTMENTS (continued)
| | |
| | Principal | |
| Repurchase Agreement—.4% | Amount ($) | Value ($) |
| Barclays Financial LLC | | |
| 0.15%, dated 11/30/09, due 12/1/09 in the | | |
| amount of $52,000,217 (fully collateralized by | | |
| $50,786,600 U.S. Treasury Notes, 3.63%, | | |
| due 8/15/19, value $53,040,006) | | |
| (cost $52,000,000) | 52,000,000 | 52,000,000 |
| |
| Total Investments (cost $13,006,281,265) | 100.1% | 13,006,281,265 |
| |
| Liabilities, Less Cash and Receivables | (.1%) | (8,011,886) |
| |
| Net Assets | 100.0% | 12,998,269,379 |
|
| 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 November 30, 2009, these |
| securities amounted to $1,609,688,095 or 12.4% of net assets. |
| b Variable rate security—interest rate subject to periodic change. |
| c On September 7, 2008, the Federal Housing Finance Agency (FHFA) placed Federal National Mortgage |
| Association and Federal Home Loan Mortgage Corporation into conservatorship with FHFA as the conservator. |
| As such, the FHFA will oversee the continuing affairs of these companies. |
| | | |
| Portfolio Summary (Unaudited)† | | |
| |
| | Value (%) | | Value (%) |
| Banking | 86.0 | Foreign/Governmental | 1.2 |
| Asset-Backed/Multi-Seller Programs | 5.8 | Repurchase Agreement | .4 |
| U.S. Government Agency | 3.8 | | |
| Finance | 2.9 | | 100.1 |
| |
| † Based on net assets. | | | |
| See notes to financial statements. | | | |
10
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2009
| | |
| | Cost | Value |
| Assets ($): | | |
| Investments in securities—See Statement of | | |
| Investments—Note 1(b) | 13,006,281,265 | 13,006,281,265 |
| Cash | | 10,408,531 |
| Interest receivable | | 2,814,501 |
| Prepaid expenses | | 360,102 |
| | | 13,019,864,399 |
| Liabilities ($): | | |
| Due to The Dreyfus Corporation and affiliates—Note 2(c) | | 2,593,596 |
| Payable for shares of Common Stock redeemed | | 18,647,985 |
| Accrued expenses | | 353,439 |
| | | 21,595,020 |
| Net Assets ($) | | 12,998,269,379 |
| Composition of Net Assets ($): | | |
| Paid-in capital | | 12,998,922,324 |
| Accumulated net realized gain (loss) on investments | | (652,945) |
| Net Assets ($) | | 12,998,269,379 |
| |
| |
| Net Asset Value Per Share | | |
| | Class A | Class B |
| Net Assets ($) | 1,683,536,260 | 11,314,733,119 |
| Shares Outstanding | 1,683,607,171 | 11,315,315,153 |
| Net Asset Value Per Share ($) | 1.00 | 1.00 |
| |
| See notes to financial statements. | | |
The Fund 11
STATEMENT OF OPERATIONS
Year Ended November 30, 2009
| |
| Investment Income ($): | |
| Interest Income | 114,189,592 |
| Expenses: | |
| Management fee—Note 2(a) | 61,297,509 |
| Shareholder servicing costs—Note 2(c) | 33,214,697 |
| Distribution, service and prospectus fees—Note 2(b) | 24,749,577 |
| Treasury insurance expense—Note 1(e) | 3,738,765 |
| Registration fees | 804,813 |
| Directors’ fees and expenses—Note 2(d) | 538,559 |
| Custodian fees—Note 2(c) | 415,819 |
| Professional fees | 80,376 |
| Shareholders’ reports | 57,174 |
| Miscellaneous | 145,707 |
| Total Expenses | 125,042,996 |
| Less—reduction in expenses due to undertaking—Note 2(a) | (38,365,768) |
| Less—reduction in shareholder servicing | |
| costs due to undertaking—Note 2(c) | (553,063) |
| Less—reduction in fees due to earnings credits—Note 1(b) | (59,086) |
| Net Expenses | 86,065,079 |
| Investment Income—Net | 28,124,513 |
| Net Realized Gain (Loss) on Investments—Note 1(b) ($) | 300,986 |
| Net Increase in Net Assets Resulting from Operations | 28,425,499 |
| |
| See notes to financial statements. | |
12
STATEMENT OF CHANGES IN NET ASSETS
| | |
| | Year Ended November 30, |
| | 2009 | 2008 |
| Operations ($): | | |
| Investment income—net | 28,124,513 | 279,842,381 |
| Net realized gain (loss) on investments | 300,986 | 1,150,315 |
| Net Increase (Decrease) in Net Assets | | |
| Resulting from Operations | 28,425,499 | 280,992,696 |
| Dividends to Shareholders from ($): | | |
| Investment income—net: | | |
| Class A Shares | (4,614,800) | (37,670,113) |
| Class B Shares | (23,509,713) | (242,172,268) |
| Total Dividends | (28,124,513) | (279,842,381) |
| Capital Stock Transactions ($1.00 per share): | | |
| Net proceeds from shares sold: | | |
| Class A Shares | 4,692,144,099 | 5,486,097,415 |
| Class B Shares | 21,403,049,370 | 24,686,103,249 |
| Dividends reinvested: | | |
| Class A Shares | 4,583,532 | 37,128,321 |
| Class B Shares | 23,353,879 | 240,482,997 |
| Cost of shares redeemed: | | |
| Class A Shares | (4,325,860,505) | (5,250,170,596) |
| Class B Shares | (19,976,960,487) | (24,153,341,897) |
| Increase (Decrease) in Net Assets from | | |
| Capital Stock Transactions | 1,820,309,888 | 1,046,299,489 |
| Total Increase (Decrease) in Net Assets | 1,820,610,874 | 1,047,449,804 |
| Net Assets ($): | | |
| Beginning of Period | 11,177,658,505 | 10,130,208,701 |
| End of Period | 12,998,269,379 | 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.
| | | | | |
| | | Year Ended November 30, | |
| Class A Shares | 2009 | 2008 | 2007 | 2006 | 2005 |
| Per Share Data ($): | | | | | |
| Net asset value, | | | | | |
| beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| Investment Operations: | | | | | |
| Investment income—net | .003 | .027 | .045 | .042 | .023 |
| Distributions: | | | | | |
| Dividends from investment | | | | | |
| income—net | (.003) | (.027) | (.045) | (.042) | (.023) |
| Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| Total Return (%) | .33 | 2.75 | 4.64 | 4.28 | 2.32 |
| Ratios/Supplemental Data (%): | | | | | |
| Ratio of total expenses | | | | | |
| to average net assets | .77 | .76 | .79 | .78 | .79 |
| Ratio of net expenses | | | | | |
| to average net assets | .60 | .76a | .79 | .78a | .79 |
| Ratio of net investment income | | | | | |
| to average net assets | .31 | 2.66 | 4.54 | 4.18 | 2.28 |
| Net Assets, end of period | | | | | |
| ($ x 1,000) | 1,683,536 | 1,312,626 | 1,039,268 | 1,022,572 | 1,094,031 |
| |
| a Expense waivers and/or reimbursements amounted to less than .01%. | | | |
| See notes to financial statements. | | | | | |
14
| | | | | |
| | | Year Ended November 30, | |
| Class B Shares | 2009 | 2008 | 2007 | 2006 | 2005 |
| Per Share Data ($): | | | | | |
| Net asset value, | | | | | |
| beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| Investment Operations: | | | | | |
| Investment income—net | .002 | .024 | .043 | .040 | .021 |
| Distributions: | | | | | |
| Dividends from investment | | | | | |
| income—net | (.002) | (.024) | (.043) | (.040) | (.021) |
| Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| Total Return (%) | .23 | 2.48 | 4.40 | 4.05 | 2.09 |
| Ratios/Supplemental Data (%): | | | | | |
| Ratio of total expenses | | | | | |
| to average net assets | 1.06 | 1.04 | 1.03 | 1.02 | 1.03 |
| Ratio of net expenses | | | | | |
| to average net assets | .72 | 1.03 | 1.02 | 1.01 | 1.01 |
| Ratio of net investment income | | | | | |
| to average net assets | .22 | 2.43 | 4.32 | 3.98 | 2.06 |
| Net Assets, end of period | | | | | |
| ($ x 1,000) | 11,314,733 | 9,865,033 | 9,090,941 | 8,489,944 | 7,516,365 |
| |
| See notes to financial statements. | | | | | |
The Fund 15
NOTES TO FINANCIAL STATEMENTS
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, f inancial 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 November 30, 2009, sub-accounting service fees amounted to $5,374,464 for Class B shares and are included in Shareholder servicing costs in the Statement of Operations. 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 no assurance, however, that the fund will be able to maintain a stable net asset value per share of $1.00.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) has become the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants.The ASC has superseded all existing non-SEC accounting and reporting standards. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.
The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.
(a) Portfolio valuation: Investments in securities are valued at amortized 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 the fund’s investments.
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value.This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
The Fund 17
NOTES TO FINANCIAL STATEMENTS (continued)
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of the fund’s investments relating to fair value measurements.These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for
identical investments.
Level 2—other significant observable inputs (including quoted
prices for similar investments, 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 securities. 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 November 30, 2009 in valuing the fund’s investments:
| |
| | Short-Term |
| Valuation Inputs | Investments ($)† |
| Level 1—Unadjusted Quoted Prices | — |
| Level 2—Other Significant Observable Inputs | 13,006,281,265 |
| Level 3—Significant Unobservable Inputs | — |
| Total | 13,006,281,265 |
† See Statement of Investments for additional detailed categorizations.
18
(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.
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 resu lting loss against 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
The Fund 19
NOTES TO FINANCIAL STATEMENTS (continued)
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 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 November 30, 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 four-year period ended November 30, 2009 remains subject to examination by the Internal Revenue Service and state taxing authorities.
At November 30, 2009, the components of accumulated earnings on a tax basis were substantially the same as for financial reporting purposes.
The fund has an unused capital loss carryover of $652,945 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to November 30, 2009. If not applied, the carryover expires in fiscal 2013.
The tax character of distributions paid to shareholders during the fiscal periods ended November 30, 2009 and November 30, 2008 were all ordinary income.
At November 30, 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 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”).
20
Under the Program, the Treasury guaranteed 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 fell below $0.995 (a “Guarantee Event”) and the fund liquidated. Recovery under the Program was subject to certain conditions and limitations.
Fund shares acquired by investors after September 19, 2008 that increased the number of fund shares the investor held at the close of business on September 19, 2008 were 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 were 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 had been further extended by the Treasury until September 18, 2009, at which time the Secretary of the Treasury terminated the Program.As such, the fund is no longer eligible for protection under the Program. Participation in the initial term and the two extended periods of the Program required payments to the Treasury in the amounts 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 was borne by the fund without regard to any expense limitation 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 November 30, 2009, there was no expense reimbursement pursuant to the Agreement.
The Fund 21
NOTES TO FINANCIAL STATEMENTS (continued)
The Manager has undertaken to reimburse expenses in the event that current yields drop below a certain level.This undertaking is voluntary and not contractual and may be terminated at any time.The reduction in expenses, pursuant to the undertaking, amounted to $2,504,021 for Class A and $35,861,747 for Class B shares during the period ended November 30, 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 November 30, 2009, Class A shares were charged $3,050,395 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
22
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 exceed .20% of the value of the average daily net assets of Class B. During the period ended November 30, 2009, Class B shares were charged $21,699,182 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 shares 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 November 30, 2009, Class A shares were charged $159,615 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 November 30, 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.
The Fund 23
NOTES TO FINANCIAL STATEMENTS (continued)
Such expense limitations are voluntary, temporary and may be terminated at any time. During the period ended November 30, 2009, Class B shares were charged $26,872,319 pursuant to the Class B Shareholder Services Plan, of which $553,063 was reimbursed by the Manager.
The fund compensates DreyfusTransfer, 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 November 30, 2009, the fund was charged $272,400 pursuant to the transfer agency agreement, which is included in Shareholder servicing costs in the Statement of Operations.
The fund compensates The Bank of NewYork 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 November 30, 2009, the fund was charged $26,946 pursuant to the cash management agreement, which is included in Shareholder servicing costs in the Statement of Operations.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 November 30, 2009, the fund was charged $415,819 pursuant to the custody agreement.
During the period ended November 30, 2009, the fund was charged $6,539 for services performed by the Chief Compliance Officer.
24
The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $5,382,133, Rule 12b-1 distribution fees $2,150,641, shareholder services plan fees $2,799,476, custody fees $104,289, chief compliance officer fees $4,454 and transfer agency per account fees $43,948, which are offset against an expense reimbursement currently in effect in the amount of $7,891,345.
(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.
NOTE 5—Subsequent Events Evaluation:
Dreyfus has evaluated the need for disclosures and/or adjustments resulting from subsequent events through January 22, 2010, the date the financial statements were issued. This evaluation did not result in any subsequent events that necessitated disclosures and/or adjustments.
The Fund 25
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Shareholders and Board of Directors
General Money Market Fund, Inc.
We have audited the accompanying statement of assets and liabilities of General Money Market Fund, Inc., including the statement of investments, as of November 30, 2009, 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 the standards of the Public Company Accounting Oversight Board (United States).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.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2009 by correspondence with the custodian and others. 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 General Money Market Fund, Inc. at November 30, 2009, 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 U.S. generally accepted accounting principles.
New York, New York
January 22, 2010
26
IMPORTANT TAX INFORMATION (Unaudited)
For federal tax purposes the fund hereby designates 95.76% of ordinary income dividends paid during the fiscal year ended November 30, 2009 as qualifying interest related dividends.
The Fund 27
INFORMATION ABOUT THE REVIEW AND APPROVAL
OF THE FUND’S MANAGEMENT AGREEMENT (Unaudited)
At a meeting of the Board of Directors held on July 21, 2009, the Board considered the re-approval for an annual period of the fund’s Management Agreement, pursuant to which the Manager provides the fund with investment advisory and administrative services. The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Manager.
Analysis of Nature, Extent and Quality of Services Provided to the Fund. The Board members considered information previously provided to them in a presentation from representatives of the Manager regarding services provided to the fund and other funds in the Dreyfus fund complex, and representatives of the Manager confirmed that there had been no material changes in this information. The Board also discussed the nature, extent and quality of the services provided to the fund pursuant to its Management Agreement.The Manager’s representatives reviewed the fund’s distribution of accounts and the relationships the Manager has with various intermediaries and the different needs of each.The Board noted that the fund’s shares are sold primarily through institutional channels and often serve as a “sweep vehicle” for use by third party broker-de alers for their customers.The Manager’s representatives noted the distribution channels for the fund as well as the diversity of distribution among the funds in the Dreyfus fund complex, and the Manager’s corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services in each distribution channel, including those of the fund. The Manager provided the number of shareholder accounts in the fund, as well as the fund’s asset size.
The Board members also considered the Manager’s research and portfolio management capabilities and that the Manager also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements. The Board members also considered the Manager’s extensive administrative, accounting and compliance infrastructure.
28
Comparative Analysis of the Fund’s Performance, Management Fee and Expense Ratio. The Board members reviewed the fund’s performance and comparisons to a group of comparable funds (the “Performance Group”) and to a broader group of funds (the “Performance Universe”) selected and provided by Lipper, Inc. (“Lipper”), an independent provider of investment company data.The Board was provided with a description of the methodology Lipper used to select the Performance Group and Performance Universe, as well as the Expense Group and Expense Universe (discussed below).The Board members discussed the results of the comparisons for various periods ended May 31, 2009 and noted that the fund’s total return performance was above or equal to the Performance Group median, and above the Performance Universe median, for each reported time period.
The Board members also discussed the fund’s contractual and actual management fee and total expense ratio as compared to a comparable group of funds (the “Expense Group”) that was composed of the same funds included in the Performance Group and a broader group of funds (the “Expense Universe”), each selected and provided by Lipper. The Board noted that the fund’s contractual management fee was above the Expense Group median, and that the fund’s actual management fee was above the Expense Group and Expense Universe medi-ans.The Board also noted that the fund’s total expense ratio was above the Expense Group median and below the Expense Universe median.
Representatives of the Manager reviewed with the Board members the fees paid to the Manager or its affiliates by mutual funds managed by the Manager or its affiliates with similar investment objectives, policies and strategies, and included in the same Lipper category, as the fund (the “Similar Funds”). The Board members considered the relevance of the fee information provided for the Similar Funds to evaluate the appropriateness and reasonableness of the fund’s management fee. Representatives of the Manager informed the Board members
The Fund 29
INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE
FUND’S MANAGEMENT AGREEMENT (Unaudited) (continued)
that there were no separate accounts or wrap fee accounts managed by the Manager or its affiliates with similar investment objectives, policies and strategies as the fund.
Analysis of Profitability and Economies of Scale.The Manager’s representatives reviewed the dollar amount of expenses allocated and profit received by the Manager and the method used to determine such expenses and profit. The Board previously had been provided with information prepared by an independent consulting firm regarding the Manager’s approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus mutual fund complex.The Board members also had been informed that the methodology also had been reviewed by an independent registered public accounting firm which, like the consultant, found the methodology to be reasonable.The consulting firm also analyzed where any economies of scale might emerge in connection with the management of a fund.The Board members evaluated the profitability analysis in light of the relevant circumstances for the fund, and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders.The Board members also considered potential benefits to the Manager and its affiliates from acting as investment adviser to the fund and noted that there were no soft dollar arrangements with respect to trading the fund’s portfolio.
It was noted that the Board members should consider the Manager’s profitability with respect to the fund as part of their evaluation of whether the fees under the Management Agreement bear a reasonable relationship to the mix of services provided by the Manager, including the nature, extent and quality of such services and that a discussion of economies of scale is predicated on increasing assets and that, if a fund’s assets had been decreasing, the possibility that the Manager may have realized any economies of scale would be less. It was also noted that the profitability percentage for managing the fund was within the range determined by appropriate court cases to be reasonable given the services rendered and generally superior service levels provided by the Manager.
30
At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to continuation of the fund’s Management Agreement. Based on the discussions and considerations as described above, the Board made the following conclusions and determinations.
The Board concluded that the nature, extent and quality of the services provided by the Manager to the fund are adequate and appropriate.
The Board was satisfied with the fund’s performance.
The Board concluded that the fee paid to the Manager by the fund was reasonable in light of the services provided, comparative perfor- mance and expense and management fee information, costs of the services provided and profits to be realized and benefits derived or to be derived by the Manager from its relationship with the fund.
The Board determined that the economies of scale which may accrue to the Manager and its affiliates in connection with the management of the fund had been adequately considered by the Manager in con- nection with the management fee rate charged to the fund and that, to the extent in the future it were to be determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.
The Board members considered these conclusions and determinations, along with the information received on a routine and regular basis throughout the year, and, without any one factor being dispositive, the Board determined that re-approval of the fund’s Management Agreement was in the best interests of the fund and its shareholders.
The Fund 31
BOARD MEMBERS INFORMATION (Unaudited)
|
| Joseph S. DiMartino (66) |
| Chairman of the Board (1995) |
| Principal Occupation During Past 5Years: |
| • Corporate Director and Trustee |
| Other Board Memberships and Affiliations: |
| • The Muscular Dystrophy Association, Director |
| • CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small |
| and medium size companies, Director |
| • The Newark Group, a provider of a national market of paper recovery facilities, paperboard |
| mills and paperboard converting plants, Director |
| No. of Portfolios for which Board Member Serves: 171 |
| ——————— |
| Clifford L. Alexander, Jr. (76) |
| Board Member (1981) |
| Principal Occupation During Past 5Years: |
| • President of Alexander & Associates, Inc., a management consulting firm (January 1981-present) |
| Other Board Memberships and Affiliations: |
| • Mutual of America Life Insurance Company, Director |
| No. of Portfolios for which Board Member Serves: 51 |
| ——————— |
| David W. Burke (73) |
| Board Member (2007) |
| Principal Occupation During Past 5Years: |
| • Corporate Director and Trustee |
| Other Board Memberships and Affiliations: |
| • John F. Kennedy Library Foundation, Director |
| No. of Portfolios for which Board Member Serves: 87 |
| ——————— |
| Peggy C. Davis (66) |
| Board Member (1990) |
| Principal Occupation During Past 5Years: |
| • Shad Professor of Law, New York University School of Law (1983-present) |
| • Writer and teacher in the fields of evidence, constitutional theory, family law, social sciences |
| and the law, legal process and professional methodology and training |
| No. of Portfolios for which Board Member Serves: 54 |
32
|
| Diane Dunst (70) |
| Board Member (2007) |
| Principal Occupation During Past 5Years: |
| • President, Huntting House Antiques |
| No. of Portfolios for which Board Member Serves: 22 |
| ——————— |
| Ernest Kafka (76) |
| Board Member (1981) |
| Principal Occupation During Past 5Years: |
| • Physician engaged in private practice specializing in the psychoanalysis of adults and |
| adolescents (1962-present) |
| • Instructor,The New York Psychoanalytic Institute (1981-present) |
| No. of Portfolios for which Board Member Serves: 22 |
| ——————— |
| Nathan Leventhal (66) |
| Board Member (1989) |
| Principal Occupation During Past 5Years: |
| • Commissioner, NYC Planning Commission (March 2007-present) |
| • Chairman of the Avery-Fisher Artist Program (November 1997-present) |
| Other Board Memberships and Affiliations: |
| • Movado Group, Inc., Director |
| • Mayor’s Committee on Appointments, Chairman |
| No. of Portfolios for which Board Member Serves: 48 |
| ——————— |
| Warren B. Rudman (79) |
| Board Member (2007) |
| Principal Occupation During Past 5Years: |
| • Co-Chairman, Stonebridge International LLC |
| • Of Counsel to (from January 1993 to December 2003, Partner in) the law firm Paul,Weiss, |
| Rifkind,Wharton & Garrison LLP |
| Other Board Memberships and Affiliations: |
| • Boston Scientific, Director |
| • D.B. Zwirn & Co.,Vice Chairman of the International Advisory Board |
| No. of Portfolios for which Board Member Serves: 33 |
| ——————— |
| Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80.The |
| address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, NewYork, NewYork |
| 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information |
| which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611. |
| Jay I. Meltzer, Emeritus Board Member |
| Daniel Rose, Emeritus Board Member |
| Sander Vanocur, Emeritus Board Member |
The Fund 33
OFFICERS OF THE FUND (Unaudited)
34
The Fund 35
OFFICERS OF THE FUND (Unaudited) (continued)
36
The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.
| |
| Item 3. | Audit Committee Financial Expert. |
The Registrant's Board has determined that Joseph S. DiMartino, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Mr. DiMartino is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.
| |
| Item 4. | Principal Accountant Fees and Services. |
(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $34,262 in 2008 and $34,948 in 2009.
(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $10,398 in 2008 and $5,276 in 2009.
The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2008 and $0 in 2009.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice, and tax planning ("Tax Services") were $3,273 in 2008 and $3,576 in 2009. These services consisted of: (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments; (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held. The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates, which required pre-approval by the Audit Committee were $0 in 2008 and $0 in 2009.
(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $3,776 in 2008 and $3,449 in 2009. These services consisted of a review of the Registrant's anti-money laundering program.
-3-
The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee, were $0 in 2008 and $0 in 2009.
Note: In each of (b) through (d) of this Item 4, 100% of all services provided by the Auditor were pre-approved as required.
Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.
Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $9,452,992 in 2008 and $26,086,988 in 2009.
Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence.
| |
| Item 5. | Audit Committee of Listed Registrants. |
Not applicable. [CLOSED-END FUNDS ONLY]
(a) Not applicable.
| |
| Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management |
| | Investment Companies. |
| | Not applicable. [CLOSED-END FUNDS ONLY] |
| Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
| | Not applicable. [CLOSED-END FUNDS ONLY, beginning with reports for periods ended |
| | on and after December 31, 2005] |
| 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
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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.
(a)(1) Code of ethics referred to in Item 2.
(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.
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SIGNATURES
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/ Bradley J. Skapyak |
| | Bradley J. Skapyak, |
| | President |
| |
| Date: | January 19, 2010 |
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/ Bradley J. Skapyak |
| | Bradley J. Skapyak, |
| | President |
| |
| Date: | January 19, 2010 |
| |
| By: | /s/ James Windels |
| James Windels, |
| | Treasurer |
| |
| Date: | January 19, 2010 |
EXHIBIT INDEX
(a)(1) Code of ethics referred to in Item 2.
(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)
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