We are pleased to present this semiannual report for General California Municipal Money Market Fund, covering the six-month period from December 1, 2015 through May 31, 2016. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.
A choppy U.S. economic recovery generally has remained intact. New job creation, declining unemployment claims, improved consumer confidence, and higher housing prices have supported an economic expansion that so far has lasted seven years. In response, the Federal Reserve Board raised short-term interest rates in December 2015 for the first time in nearly a decade. Broad measures of U.S. stock and bond market performance exhibited heightened volatility on their way to posting relatively mild gains or losses for the reporting period overall.
On the other hand, the global economy has continued to struggle with persistently slow growth despite historically aggressive monetary policies as weak demand, volatile commodity prices, and the lingering effects of various financial crises took their toll. These developments proved especially challenging for financial markets in early 2016, but stocks and riskier sectors of the bond market later rallied to recoup some of their previous losses, and high-quality sovereign bonds mostly benefited from falling interest rates.
While we are encouraged by the recent resilience of the financial markets, we expect volatility to persist until global economic uncertainty abates. In addition, wide differences in underlying fundamental and technical influences across various asset classes, economic sectors, and regional markets suggest that selectivity may be an important determinant of investment success over the months ahead. We encourage you to discuss the implications of our observations with your financial advisor.
Thank you for your continued confidence and support.
J. Charles Cardona
DISCUSSION OF FUND PERFORMANCE
DISCUSSION OF FUND PERFORMANCE
For the period of December 1, 2015 through May 31, 2016, as provided by Joseph Irace, Senior Portfolio Manager
Fund and Market Performance Overview
For the six-month period ended May 31, 2016, General California Municipal Money Market Fund’s Class A shares produced an annualized yield of 0.01%, and Class B shares yielded 0.01%. Taking into consideration the effects of compounding, the fund’s Class A and Class B shares produced annualized effective yields of 0.01% and 0.01% for the same period.1
Supply-and-demand dynamics kept yields of tax-exempt money market instruments at low levels over most of the reporting period.
The Fund’s Investment Approach
The fund seeks to maximize current income exempt from federal and California state income taxes, to the extent consistent with the preservation of capital and the maintenance of liquidity. To pursue its goal, the fund normally invests substantially all of its net assets in short-term, high-quality municipal obligations that provide income exempt from federal and California state income taxes. The fund may also invest in high-quality, short-term structured notes, which are derivative instruments whose value is tied to underlying municipal obligations.
In pursuing this objective, we employ two primary strategies. First, we normally attempt to add value by constructing a portfolio of high-quality municipal money market instruments that provide income exempt from federal and California state income taxes. Second, we actively manage the fund’s average maturity based on our anticipation of supply-and-demand changes in California’s short-term municipal marketplace.
For example, if we expect an increase in short-term supply, we may decrease the average maturity of the fund, which could enable us to take advantage of opportunities when short-term supply increases. Generally, yields tend to rise when there is an increase in new-issue supply competing for investor interest. New securities, which are generally issued with maturities in the one-year range, may in turn lengthen the fund’s weighted average maturity if purchased. If we anticipate limited new-issue supply, we may then look to extend the fund’s average maturity to maintain then-current yields for as long as we believe practical. In addition, we try to maintain an average maturity that reflects our view of short-term interest-rate trends and future supply-and-demand considerations.
Global Economic Concerns Sparked a Flight to Quality
Despite a sustained U.S. economic recovery fueled by robust job creation, persistent global economic challenges and sharp declines in commodity prices triggered a worldwide flight to quality. Robust investor demand caused high-quality U.S. bond yields to fall even when the Federal Reserve Board (the “Fed”) raised short-term interest rates in December. In January, investors again reacted negatively to weak global economic data, and demand for traditional safe havens in the United States intensified further.
3
DISCUSSION OF FUND PERFORMANCE (continued)
Issuance volumes also put downward pressure on municipal money market yields. Rising tax receipts for most states and municipalities reduced the need for financing, and robust investor demand was met with a relatively limited supply of new instruments. Expectations of higher interest rates also convinced investors to stay focused on highly liquid instruments with short maturities. Consequently, yields of variable rate demand notes (“VRDNs”) remained steady near historical lows until the end of March, when seasonal factors sent yields sharply higher. Yields of one-year notes also climbed moderately.
The U.S. economic recovery has continued to support better credit conditions for most municipal issuers. In California, budget surpluses have enabled the state to keep debt issuance at relatively low levels while high tax rates have supported investor demand.
Maintaining a Prudent Investment Posture
Like most tax-exempt money market funds, we maintained a focus on highly liquid, short-term instruments in this uncertain market environment. We set the funds’ weighted average maturities in a range that is consistent with industry averages, which have remained low compared to historical norms. Indeed, the fund’s short weighted average maturity enabled it to capture higher VRDN yields more quickly when they spiked during the spring.
We also have continued to employ a careful and well-researched credit selection strategy. We have focused mainly on instruments with strong liquidity characteristics, including VRDNs, and we have maintained broad diversification across municipal issuers and instruments backed by third parties. In our judgment, state general obligation bonds; essential service revenue bonds issued by water, sewer, and electric enterprises; certain local credits with strong financial positions and stable tax bases; and various health care and education issuers should remain stable credits.
Gradual Rate Hikes Expected
The Fed has refrained from implementing a second rate hike so far in 2016, indicating that it “continues to closely monitor inflation indicators and global economic and financial developments.” The Fed added that it expects that “economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate.”
Therefore, while many analysts expect additional rate hikes at some point this year, those increases are likely to be modest and gradual, and an emphasis on preservation of capital and liquidity remains the prudent course for fund management.
June 15, 2016
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.
Short-term municipal securities holdings involve credit and liquidity risks and risk of principal loss.
1 Annualized effective yield is based upon dividends declared daily and reinvested monthly. Past performance is no guarantee of future results. Yields fluctuate. Income may be subject to state and local taxes for non-California residents, and some income may be subject to the federal alternative minimum tax (AMT) for certain investors. 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 a voluntary undertaking that may be extended, terminated, or modified at any time. Had these expenses not been absorbed, fund yields would have been lower.
4
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 California Municipal Money Market Fund from December 1, 2015 to May 31, 2016. 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, 2016 | |
| | | | Class A | Class B |
Expenses paid per $1,000† | | | $.85 | | $.85 |
Ending value (after expenses) | | | $1,000.10 | | $1,000.10 |
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% return for the six months ended May 31, 2016 | |
| | | | Class A | Class B |
Expenses paid per $1,000† | | | $.86 | | $.86 |
Ending value (after expenses) | | | $1,024.15 | | $1,024.15 |
† Expenses are equal to the fund’s annualized expense ratio of .17% for Class A and .17% for Class B, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
5
STATEMENT OF INVESTMENTS
May 31, 2016 (Unaudited)
| | | | | | | | | | | |
| |
Short-Term Investments - 99.6% | | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
California - 99.6% | | | | | |
ABAG Finance Authority for Nonprofit Corporations,
Revenue (California Alumni Association Project) (LOC; Bank of America) | | 0.43 | | 6/7/16 | | 2,725,000 | a | 2,725,000 | |
Alameda County Industrial Development Authority,
Revenue (Autumn Press, Inc. Project) (LOC; Wells Fargo Bank) | | 0.50 | | 6/7/16 | | 945,000 | a | 945,000 | |
California Economic Development Financing Authority,
IDR (Scientific Specialties Project) (LOC; Bank of America) | | 0.45 | | 6/7/16 | | 590,000 | a | 590,000 | |
California Economic Development Financing Authority,
IDR (Volk Enterprises, Inc. Project) (LOC; JPMorgan Chase Bank) | | 0.52 | | 6/7/16 | | 300,000 | a | 300,000 | |
California Economic Development Financing Authority,
IDR (Vortech Engineering, Inc. Project) (LOC; Wells Fargo Bank) | | 0.45 | | 6/7/16 | | 1,040,000 | a | 1,040,000 | |
California Enterprise Development Authority,
IDR (Gordon Brush Manufacturing Company, Inc. Project) (LOC; Wells Fargo Bank) | | 0.46 | | 6/7/16 | | 7,000,000 | a | 7,000,000 | |
California Enterprise Development Authority,
IDR (Le Chef Bakery Project) (LOC; U.S. Bank NA) | | 0.46 | | 6/7/16 | | 1,630,000 | a | 1,630,000 | |
California Health Facilities Financing Authority,
Revenue (Saint Joseph Health System) (LOC; Union Bank NA) | | 0.41 | | 6/7/16 | | 5,000,000 | a | 5,000,000 | |
California Infrastructure and Economic Development Bank,
IDR (Bay Photo, Inc. Project) (LOC; Comerica Bank) | | 0.55 | | 6/7/16 | | 4,400,000 | a | 4,400,000 | |
California Infrastructure and Economic Development Bank,
IDR (International Raisins, Inc. Project) (LOC; M&T Trust) | | 0.55 | | 6/7/16 | | 3,750,000 | a | 3,750,000 | |
California Infrastructure and Economic Development Bank,
IDR (Starter and Alternator Exchange, Inc. Project) (LOC; U.S. Bank NA) | | 0.49 | | 6/7/16 | | 5,000,000 | a | 5,000,000 | |
California Infrastructure and Economic Development Bank,
IDR (Studio Moulding, Inc. Project) (LOC; Comerica Bank) | | 0.55 | | 6/7/16 | | 2,025,000 | a | 2,025,000 | |
California Infrastructure and Economic Development Bank,
IDR (Surtec, Inc. Project) (LOC; Wells Fargo Bank) | | 0.52 | | 6/7/16 | | 1,650,000 | a | 1,650,000 | |
6
| | | | | | | | | | | |
| |
Short-Term Investments - 99.6% (continued) | | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
California - 99.6% (continued) | | | | | |
California Infrastructure and Economic Development Bank,
Revenue, Refunding (Pacific Gas and Electric Company) (LOC; Sumitomo Mitsui Bank Corp.) | | 0.34 | | 6/1/16 | | 5,000,000 | a | 5,000,000 | |
California Pollution Control Financing Authority,
PCR, Refunding (Pacific Gas and Electric Company) (LOC; JPMorgan Chase Bank) | | 0.33 | | 6/1/16 | | 12,600,000 | a | 12,600,000 | |
California Pollution Control Financing Authority,
PCR, Refunding (Pacific Gas and Electric Company) (LOC; JPMorgan Chase Bank) | | 0.35 | | 6/1/16 | | 14,000,000 | a | 14,000,000 | |
California Pollution Control Financing Authority,
PCR, Refunding (Pacific Gas and Electric Company) (LOC; JPMorgan Chase Bank) | | 0.35 | | 6/1/16 | | 12,500,000 | a | 12,500,000 | |
California Pollution Control Financing Authority,
SWDR (A&M Farms Project) (LOC; CoBank ACB) | | 0.45 | | 6/7/16 | | 1,900,000 | a | 1,900,000 | |
California Pollution Control Financing Authority,
SWDR (Ag Resources, III LLC Project) (LOC; CoBank ACB) | | 0.43 | | 6/7/16 | | 2,780,000 | a | 2,780,000 | |
California Pollution Control Financing Authority,
SWDR (Bay Counties Waste Services, Inc. Project) (LOC; Comerica Bank) | | 0.53 | | 6/7/16 | | 3,200,000 | a | 3,200,000 | |
California Pollution Control Financing Authority,
SWDR (Bos Farms Project) (LOC; CoBank ACB) | | 0.45 | | 6/7/16 | | 1,550,000 | a | 1,550,000 | |
California Pollution Control Financing Authority,
SWDR (Desert Properties, LLC Project) (LOC; Union Bank NA) | | 0.43 | | 6/7/16 | | 1,700,000 | a | 1,700,000 | |
California Pollution Control Financing Authority,
SWDR (Garden City Sanitation, Inc. Project) (LOC; Bank of Tokyo-Mitsubishi, UFJ, Ltd.) | | 0.44 | | 6/7/16 | | 3,000,000 | a | 3,000,000 | |
California Pollution Control Financing Authority,
SWDR (GreenWaste Recovery, Inc. Project) (LOC; Union Bank NA) | | 0.43 | | 6/7/16 | | 805,000 | a | 805,000 | |
California Pollution Control Financing Authority,
SWDR (JDS Ranch Project) (LOC; Wells Fargo Bank) | | 0.45 | | 6/7/16 | | 2,350,000 | a | 2,350,000 | |
California Pollution Control Financing Authority,
SWDR (Mid-Valley Disposal Project) (LOC; Union Bank NA) | | 0.43 | | 6/7/16 | | 2,290,000 | a | 2,290,000 | |
7
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| | | | | | | | | | | |
| |
Short-Term Investments - 99.6% (continued) | | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
California - 99.6% (continued) | | | | | |
California Pollution Control Financing Authority,
SWDR (Mill Valley Refuse Service, Inc. Project) (LOC; Comerica Bank) | | 0.53 | | 6/7/16 | | 985,000 | a | 985,000 | |
California Pollution Control Financing Authority,
SWDR (Northern Recycling and Waste Services, LLC Project) (LOC; Union Bank NA) | | 0.43 | | 6/7/16 | | 835,000 | a | 835,000 | |
California Pollution Control Financing Authority,
SWDR (Sierra Pacific Industries Project) (LOC; Wells Fargo Bank) | | 0.43 | | 6/7/16 | | 4,000,000 | a | 4,000,000 | |
California Pollution Control Financing Authority,
SWDR (Solid Wastes of Willits, Inc. Project) (LOC; Comerica Bank) | | 0.53 | | 6/7/16 | | 1,000,000 | a | 1,000,000 | |
California Pollution Control Financing Authority,
SWDR (South Lake Refuse Company, LLC Project) (LOC; Union Bank NA) | | 0.43 | | 6/7/16 | | 970,000 | a | 970,000 | |
California Pollution Control Financing Authority,
SWDR (Upper Valley Disposal Service Project) (LOC; Union Bank NA) | | 0.43 | | 6/7/16 | | 1,230,000 | a | 1,230,000 | |
California Pollution Control Financing Authority,
SWDR (Valley Vista Services, Inc. Project) (LOC; Comerica Bank) | | 0.53 | | 6/7/16 | | 3,800,000 | a | 3,800,000 | |
California Pollution Control Financing Authority,
SWDR (West Valley MRF, LLC Project) (LOC; Union Bank NA) | | 0.43 | | 6/7/16 | | 1,700,000 | a | 1,700,000 | |
California Pollution Control Financing Authority,
SWDR (Zerep Management Corporation Project) (LOC; Comerica Bank) | | 0.53 | | 6/7/16 | | 3,000,000 | a | 3,000,000 | |
California School Cash Reserve Program Authority,
Revenue | | 2.00 | | 6/30/16 | | 595,000 | | 595,727 | |
California Statewide Communities Development Authority,
MFHR (Lake Merritt Apartments) (LOC; U.S. Bank NA) | | 0.43 | | 6/7/16 | | 3,400,000 | a | 3,400,000 | |
California Statewide Communities Development Authority,
MFHR (Olen Jones Senior Apartments Project) (LOC; Citibank NA) | | 0.50 | | 6/7/16 | | 760,000 | a | 760,000 | |
California Statewide Communities Development Authority,
MFHR, Refunding (Horizons at Indio) (LOC; Citibank NA) | | 0.46 | | 6/7/16 | | 2,910,000 | a | 2,910,000 | |
California Statewide Communities Development Authority,
Revenue (Kaiser Permanente) | | 0.36 | | 6/7/16 | | 1,500,000 | a | 1,500,000 | |
8
| | | | | | | | | | | |
| |
Short-Term Investments - 99.6% (continued) | | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
California - 99.6% (continued) | | | | | |
California Statewide Communities Development Authority,
Revenue, CP (Kaiser Permanente) | | 0.48 | | 7/5/16 | | 3,300,000 | | 3,300,000 | |
California Statewide Communities Development Authority,
Revenue, CP (Kaiser Permanente) | | 0.25 | | 8/4/16 | | 5,300,000 | | 5,296,283 | |
Concord,
MFHR, Refunding (Maplewood and Golden Glen Apartments Project) (LOC; Citibank NA) | | 0.44 | | 6/7/16 | | 2,625,000 | a | 2,625,000 | |
Contra Costa County,
MFHR (Camara Circle Apartments) (LOC; Citibank NA) | | 0.44 | | 6/7/16 | | 1,575,000 | a | 1,575,000 | |
Golden Gate Bridge and Highway District,
CP (LOC; JPMorgan Chase Bank) | | 0.45 | | 6/6/16 | | 9,500,000 | | 9,500,000 | |
Irvine Ranch Water District,
GO Notes (Improvement District Numbers 105, 112, 113, 121, 130, 140, 161, 182, 184, 186, 188, 212, 213, 221, 230, 240, 250, 261, 282, 284, 286 and 288) (LOC; U.S. Bank NA) | | 0.31 | | 6/1/16 | | 5,300,000 | a | 5,300,000 | |
Irvine Unified School District Community Facilities District Number 09-1,
Special Tax Revenue (LOC; U.S. Bank NA) | | 0.31 | | 6/1/16 | | 2,500,000 | a | 2,500,000 | |
Kern County,
GO Notes, TRAN | | 7.00 | | 6/30/16 | | 1,000,000 | | 1,005,283 | |
Los Angeles County,
TRAN | | 5.00 | | 6/30/16 | | 1,250,000 | | 1,254,642 | |
Manteca Redevelopment Agency,
Subordinate Tax Allocation Revenue, Refunding (Amended Merged Project Area) (LOC; State Street Bank and Trust Co.) | | 0.30 | | 6/1/16 | | 16,120,000 | a | 16,120,000 | |
Moorpark Unified School District,
GO Notes, TRAN | | 2.00 | | 6/30/16 | | 1,700,000 | | 1,702,355 | |
Oakland,
GO Notes, TRAN | | 2.00 | | 6/30/16 | | 1,000,000 | | 1,001,351 | |
Riverside County,
GO Notes, TRAN | | 2.00 | | 6/30/16 | | 3,700,000 | | 3,704,482 | |
Westminster Redevelopment Agency,
MFHR (Brookhurst Royale Senior Assisted Living Project) (LOC; Union Bank NA) | | 0.60 | | 6/7/16 | | 235,000 | a | 235,000 | |
Total Investments (cost $181,534,600) | | 99.6% | | 181,535,123 | |
Cash and Receivables (Net) | | 0.4% | | 733,494 | |
Net Assets | | 100.0% | | 182,268,617 | |
a Variable rate demand note—rate shown is the interest rate in effect at May 31, 2016. Maturity date represents the next demand date, or the ultimate maturity date if earlier.
9
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| | |
Portfolio Summary (Unaudited) † | Value (%) |
Pollution Control | 31.3 |
Industrial | 22.5 |
Special Tax | 11.8 |
Housing | 6.2 |
Health Care | 5.5 |
Transportation Services | 5.2 |
Resource Recovery | 3.6 |
Utility-Electric | 2.7 |
City | 2.6 |
Education | 2.6 |
Utility-Water and Sewer | 1.5 |
County | 1.2 |
Other | 2.9 |
| | 99.6 |
† Based on net assets.
See notes to financial statements.
10
| | | | |
| |
Summary of Abbreviations (Unaudited) |
| |
ABAG | Association of Bay Area
Governments | ACA | American Capital Access |
AGC | ACE Guaranty Corporation | AGIC | Asset Guaranty Insurance Company |
AMBAC | American Municipal Bond
Assurance Corporation | ARRN | Adjustable Rate
Receipt Notes |
BAN | Bond Anticipation Notes | BPA | Bond Purchase Agreement |
CIFG | CDC Ixis Financial Guaranty | COP | Certificate of Participation |
CP | Commercial Paper | DRIVERS | Derivative Inverse
Tax-Exempt Receipts |
EDR | Economic Development
Revenue | EIR | Environmental Improvement
Revenue |
FGIC | Financial Guaranty
Insurance Company | FHA | Federal Housing Administration |
FHLB | Federal Home
Loan Bank | FHLMC | Federal Home Loan Mortgage
Corporation |
FNMA | Federal National
Mortgage Association | GAN | Grant Anticipation Notes |
GIC | Guaranteed Investment
Contract | GNMA | Government National Mortgage
Association |
GO | General Obligation | HR | Hospital Revenue |
IDB | Industrial Development Board | IDC | Industrial Development Corporation |
IDR | Industrial Development
Revenue | LIFERS | Long Inverse Floating
Exempt Receipts |
LOC | Letter of Credit | LOR | Limited Obligation Revenue |
LR | Lease Revenue | MERLOTS | Municipal Exempt Receipts
Liquidity Option Tender |
MFHR | Multi-Family Housing Revenue | MFMR | Multi-Family Mortgage Revenue |
PCR | Pollution Control Revenue | PILOT | Payment in Lieu of Taxes |
P-FLOATS | Puttable Floating Option
Tax-Exempt Receipts | PUTTERS | Puttable Tax-Exempt Receipts |
RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes |
RAW | Revenue Anticipation Warrants | RIB | Residual Interest Bonds |
ROCS | Reset Options Certificates | RRR | Resources Recovery Revenue |
SAAN | State Aid Anticipation Notes | SBPA | Standby Bond Purchase Agreement |
SFHR | Single Family Housing Revenue | SFMR | Single Family Mortgage Revenue |
SONYMA | State of New York
Mortgage Agency | SPEARS | Short Puttable Exempt
Adjustable Receipts |
SWDR | Solid Waste Disposal Revenue | TAN | Tax Anticipation Notes |
TAW | Tax Anticipation Warrants | TRAN | Tax and Revenue Anticipation Notes |
XLCA | XL Capital Assurance | | |
See notes to financial statements.
11
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2016 (Unaudited)
| | | | | | | |
| | | | | | |
| | | Cost | | Value | |
Assets ($): | | | | |
Investments in securities—See Statement of Investments: | | 181,534,600 | | 181,535,123 | |
Cash | | | | | 491,121 | |
Interest receivable | | | | | 297,165 | |
Prepaid expenses | | | | | 45,873 | |
| | | | | 182,369,282 | |
Liabilities ($): | | | | |
Due to The Dreyfus Corporation and affiliates—Note 2(c) | | | | | 55,850 | |
Payable for shares of Beneficial Interest redeemed | | | | | 2,003 | |
Accrued expenses | | | | | 42,812 | |
| | | | | 100,665 | |
Net Assets ($) | | | 182,268,617 | |
Composition of Net Assets ($): | | | | |
Paid-in capital | | | | | 182,268,094 | |
Accumulated net unrealized appreciation (depreciation)
on investments | | | | | 523 | |
Net Assets ($) | | | 182,268,617 | |
| | | | |
Net Asset Value Per Share | Class A | Class B | |
Net Assets ($) | 100,868,780 | 81,399,837 | |
Shares Outstanding | 100,744,070 | 81,300,458 | |
Net Asset Value Per Share ($) | 1.00 | 1.00 | |
See notes to financial statements.
12
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2016 (Unaudited)
| | | | | | | |
| | | | | | |
| | | | | | |
Investment Income ($): | | | | |
Interest Income | | | 176,815 | |
Expenses: | | | | |
Management fee—Note 2(a) | | | 502,325 | |
Shareholder servicing costs—Note 1 and Note 2(c) | | | 171,838 | |
Distribution and prospectus fees—Note 2(b) | | | 97,988 | |
Professional fees | | | 54,017 | |
Registration fees | | | 19,047 | |
Prospectus and shareholders’ reports | | | 16,770 | |
Custodian fees—Note 2(c) | | | 8,494 | |
Trustees’ fees and expenses—Note 2(d) | | | 5,574 | |
Miscellaneous | | | 17,361 | |
Total Expenses | | | 893,414 | |
Less—reduction in expenses due to undertaking—Note 2(a) | | | (666,099) | |
Less—reduction in shareholder servicing costs
due to undertaking—Note 2(c) | | (59,312) | |
Less—reduction in fees due to earnings credits—Note 2(c) | | | (226) | |
Net Expenses | | | 167,777 | |
Investment Income—Net, representing net increase in
net assets resulting from operations | | | 9,038 | |
Net unrealized appreciation (depreciation) on investments | | | 523 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 523 | |
Net Increase in Net Assets Resulting from Operations | | 9,561 | |
See notes to financial statements.
13
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | Six Months Ended
May 31, 2016 (Unaudited) | | | | Year Ended
November 30, 2015 | |
Operations ($): | | | | | | | | |
Investment income—net | | | 9,038 | | | | 61 | |
Net unrealized appreciation (depreciation)
on investments | | 523 | | | | - | |
Net Increase (Decrease) in Net Assets
Resulting from Operations | 9,561 | | | | 61 | |
Dividends to Shareholders from ($): | | | | | | | | |
Investment income—net: | | | | | | | | |
Class A | | | (5,008) | | | | (32) | |
Class B | | | (4,030) | | | | (29) | |
Total Dividends | | | (9,038) | | | | (61) | |
Beneficial Interest Transactions ($1.00 per share): | | | | | | | |
Net proceeds from shares sold: | | | | | | | | |
Class A | | | 87,600,875 | | | | 162,634,612 | |
Class B | | | 119,876,420 | | | | 295,124,053 | |
Dividends reinvested: | | | | | | | | |
Class A | | | 3,920 | | | | 23 | |
Class B | | | 3,997 | | | | 29 | |
Cost of shares redeemed: | | | | | | | | |
Class A | | | (115,840,177) | | | | (157,281,299) | |
Class B | | | (134,691,567) | | | | (278,972,671) | |
Increase (Decrease) in Net Assets
from Beneficial Interest Transactions | (43,046,532) | | | | 21,504,747 | |
Total Increase (Decrease) in Net Assets | (43,046,009) | | | | 21,504,747 | |
Net Assets ($): | | | | | | | | |
Beginning of Period | | | 225,314,626 | | | | 203,809,879 | |
End of Period | | | 182,268,617 | | | | 225,314,626 | |
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See notes to financial statements.
14
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.
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Six Months Ended
May 31, 2016 | Year Ended November 30, |
Class A Shares | (Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 |
Per Share Data ($): | | | | | | |
Net asset value,
beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Investment Operations: | | | | | | |
Investment income—neta | .000 | .000 | .000 | .000 | .000 | .000 |
Distributions: | | | | | | |
Dividends from
investment income—neta | (.000) | (.000) | (.000) | (.000) | (.000) | (.000) |
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Total Return (%) | .01b | .00c | .00c | .00c | .00c | .00c |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | .70d | .68 | .66 | .66 | .63 | .62 |
Ratio of net expenses
to average net assets | .17d | .09 | .11 | .18 | .26 | .36 |
Ratio of net investment income
to average net assets | .01d | .00c | .00c | .00c | .00c | .00c |
Net Assets, end of period
($ x 1,000) | 100,869 | 129,108 | 123,763 | 137,765 | 244,282 | 245,710 |
a Amount represents less than $.001 per share.
b Not annualized.
c Amount represents less than .01%.
d Annualized.
See notes to financial statements.
15
FINANCIAL HIGHLIGHTS (continued)
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Six Months Ended
May 31, 2016 | Year Ended November 30, |
Class B Shares | (Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 |
Per Share Data ($): | | | | | | |
Net asset value,
beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Investment Operations: | | | | | | |
Investment income—neta | .000 | .000 | .000 | .000 | .000 | .000 |
Distributions: | | | | | | |
Dividends from
investment income—neta | (.000) | (.000) | (.000) | (.000) | (.000) | (.000) |
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Total Return (%) | .01b | .00c | .00c | .00c | .00c | .00c |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | 1.13d | 1.11 | 1.10 | 1.11 | 1.08 | 1.07 |
Ratio of net expenses
to average net assets | .17d | .09 | .11 | .17 | .27 | .35 |
Ratio of net investment income
to average net assets | .01d | .00c | .00c | .00c | .00c | .00c |
Net Assets, end of period
($ x 1,000) | 81,400 | 96,207 | 80,047 | 58,297 | 48,219 | 56,385 |
a Amount represents less than $.001 per share.
b Not annualized.
c Amount represents less than .01%.
d Annualized.
See notes to financial statements.
16
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
General California Municipal Money Market Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified open-end management investment company. The fund’s investment objective is to seek to maximize current income exempt from federal and California state income taxes, to the extent consistent with the preservation of capital and the maintenance of liquidity. 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 Dreyfus, is the distributor of the fund’s shares, which are sold to the public without a sales charge. The fund is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Class A and Class B. 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 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 (securities dealers, financial institutions or other industry professionals) 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, 2016, sub-accounting service fees amounted to $22,203 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 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”) is 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 fund’s financial statements are prepared in accordance with
17
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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 under the Act. If amortized cost is determined not to approximate market value, the fair value of the portfolio securities will be determined by procedures established by and under the general supervision of the fund’s Board of Trustees (the “Board”).
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).
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
18
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 within Level 2 of the fair value hierarchy.
The following is a summary of the inputs used as of May 31, 2016 in valuing the fund’s investments:
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Valuation Inputs | Short-Term Investments ($)† |
Level 1 - Unadjusted Quoted Prices | - |
Level 2 - Other Significant Observable Inputs | 181,535,123 |
Level 3 - Significant Unobservable Inputs | - |
Total | 181,535,123 |
† See Statement of Investments for additional detailed categorizations. |
At May 31, 2016, there were no transfers between levels of the fair value hierarchy.
(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 settlement date and is 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 follows an investment policy of investing primarily in municipal obligations of one state. Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the fund.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. 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, which can distribute tax-exempt dividends, by complying with the applicable provisions of the
19
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.
As of and during the period ended May 31, 2016, 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 ended May 31, 2016, the fund did not incur any interest or penalties.
Each tax year in the three-year period ended November 30, 2015 remains subject to examination by the Internal Revenue Service and state taxing authorities.
The tax character of distributions paid to shareholders during the fiscal year ended November 30, 2015 was all tax-exempt income. The tax character of current year distributions will be determined at the end of the current fiscal year.
At May 31, 2016, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).
NOTE 2—Management Fee and Other Transactions with Affiliates:
(a) Pursuant to a management agreement (the “Agreement”) with Dreyfus, 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 (excluding taxes, brokerage commissions and extraordinary expenses) exceed 1½% of the value of the fund’s average daily net assets, the fund may deduct from payments to be made to Dreyfus, or Dreyfus will bear, such excess expense. During the period ended May 31, 2016, there was no reduction in expenses pursuant to the Agreement.
Dreyfus has also undertaken to waive receipt of the management fee and/or reimburse operating expenses in order to facilitate a daily yield at or above a certain level which may change from time to time. This undertaking is voluntary and not contractual, and may be terminated at any time. The reduction in expenses, pursuant to the undertaking, amounted to $666,099 during the period ended May 31, 2016.
(b) Under the Distribution Plan with respect to Class B, 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 Distribution Plan, such aggregate amount not to exceed in any fiscal year of the fund
20
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 its shares at an annual rate not to exceed .20% of the value of its average daily net assets. During the period ended May 31, 2016, Class B shares were charged $97,988 pursuant to the Distribution Plan.
(c) Under the Shareholder Services Plan with respect to Class A (the “Class A Shareholder Services Plan”), Class A shares reimburse the Distributor at an amount not to exceed an annual rate of .25% of the value of the average daily net assets of its shares for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended May 31, 2016, Class A shares were charged $27,810 pursuant to the Class A Shareholder Services Plan.
Under the Shareholder Services Plan with respect to Class B (the “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 its shares for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents with respect to these services. The Distributor determines the amounts to be paid to Service Agents.
Dreyfus had also undertaken from December 1, 2015 through May 31, 2016, to reduce the expenses of Class B shares, if the aggregate expenses of Class B shares (excluding taxes, brokerage commissions and extraordinary expenses) exceeded an annual rate of 1% of the value of the average daily net assets of Class B shares. Such expense limitations are voluntary, temporary and may be revised or terminated at any time. During the period ended May 31, 2016, Class B shares were charged $111,015 pursuant to the Class B Shareholder Services Plan, of which $59,312 was reimbursed by Dreyfus.
The fund has arrangements with the transfer agent and the custodian whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset transfer agency and custody fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.
21
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing transfer agency and cash management services for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended May 31, 2016, the fund was charged $8,474 for transfer agency services and $496 for cash management services. These fees are included in Shareholder servicing costs in the Statement of Operations. Cash management fees were partially offset by earnings credits of $226.
The fund compensates The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets, geographic region and transaction activity. During the period ended May 31, 2016, the fund was charged $8,494 pursuant to the custody agreement.
The fund compensates The Bank of New York Mellon under a shareholder redemption draft processing agreement for providing certain services related to the fund’s check writing privilege. During the period ended May 31, 2016, the fund was charged $346 pursuant to the agreement, which is included in Shareholder servicing costs in the Statement of Operations.
During the period ended May 31, 2016, the fund was charged $4,812 for services performed by the Chief Compliance Officer and his staff.
The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $78,765, Distribution Plan fees $13,831, Shareholder Services Plan fees $32,746, custodian fees $8,149, Chief Compliance Officer fees $4,010 and transfer agency fees $3,081, which are offset against an expense reimbursement currently in effect in the amount of $84,732.
(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 3—Securities Transactions:
The fund is permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the fund from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a
22
common investment adviser (or affiliated investment adviser), common Trustees and/or common officers, complies with Rule 17a-7 under the Act. During the period ended May 31, 2016, the fund engaged in purchases and sales of securities pursuant to Rule 17a-7 under the Act amounting to $125,385,000 and $115,350,000, respectively.
NOTE 4—Regulatory Developments:
On July 23, 2014, the SEC adopted amendments to the rules that govern the operations of money market mutual funds. The degree to which a fund will be impacted by the amendments will depend upon the type of fund and the type of investors (retail or institutional). The amendments have staggered compliance dates, but funds must be in compliance with all amendments by October 14, 2016. At this time, management continues to evaluate the implications of the amendments and their impact to the fund’s operations, financial statements and accompanying notes.
23
NOTES
24
NOTES
25
General California Municipal Money Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York Mellon
225 Liberty Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
MBSC Securities Corporation
200 Park Avenue
New York, NY 10166
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Ticker Symbols: Class A: GCAXX Class B: GENXX |
Telephone Call your financial representative or 1-800-DREYFUS
Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 1556-0144
E-mail Send your request to info@dreyfus.com
Internet Information can be viewed online or downloaded at www.dreyfus.com
The fund will disclose daily, on www.dreyfus.com, the fund’s complete schedule of holdings as of the end of the previous business day. The schedule of holdings will remain on the website until the fund files its Form N-Q or Form N-CSR for the period that includes the date of the posted holdings.
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. (phone 1-800-SEC-0330 for information).
Information regarding how the fund voted proxies related to portfolio securities for the most recent 12-month period ended June 30 is available at www.dreyfus.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-DREYFUS.
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© 2016 MBSC Securities Corporation
0573SA0516 | 
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