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
GENEERAL 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)
Mark N. Jacobs, 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: November 30
Date of reporting period: May 31, 2003
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
General Money
Market Fund, Inc.
SEMIANNUAL REPORT May 31, 2003
YOU, YOUR ADVISORY AND
DREYFUS
A MELLON FINANCIAL COMPANY(SM)
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.
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
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2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
16 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
General Money Market Fund, Inc.
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for General Money Market Fund, Inc. covers the six-month
period from December 1, 2002, through May 31, 2003. Inside, you'll find valuable
information about how the fund was managed during the reporting period,
including a discussion with the fund's portfolio manager, Bernard W. Kiernan,
Jr.
We have recently seen some signs of stability in the financial markets. Perhaps
most important, the war in Iraq wound down quickly, without disrupting oil
supplies or major incidents of terrorism. While the U.S. economy has remained
weak, growth has been positive overall. Many stock market indices have posted
encouraging gains since the start of 2003, suggesting greater investor optimism,
although it is uncertain whether such gains will continue. At the same time,
yields of U.S. Treasury securities and money market instruments continue to
hover near historical lows, and inflationary pressures have remained subdued
What are the implications for your investments? An accommodative monetary policy
and a stimulative fiscal policy suggest that money market yields should remain
relatively low for the foreseeable future, even if the economy begins to gain
strength. We currently see opportunities for potentially higher returns from
longer-term assets in the stock and bond markets, but selectivity among
individual securities should remain a key factor. However, no one can say for
certain what direction the markets will take over time. Your financial advisor
can help you to ensure that your portfolio reflects your investment needs,
long-term goals and attitudes toward risk.
Thank you for your continued confidence and support.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
June 16, 2003
DISCUSSION OF FUND PERFORMANCE
Bernard W. Kiernan, Jr., Portfolio Manager
How did General Money Market Fund, Inc. perform during the period?
During the six-month period ended May 31, 2003, the fund produced annualized
yields of 0.72% for Class A shares, 0.48% for Class B shares and 0.44% for Class
X shares. Taking into account the effects of compounding, the fund produced
annualized effective yields of 0.72% for Class A shares, 0.48% for Class B
shares and 0.45% for Class X shares for the same period.(1)
What is 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, short-term securities issued by
domestic or foreign banks, repurchase agreements, asset-backed securities,
domestic and dollar-denominated foreign commercial paper and dollar-denominated
obligations issued or guaranteed by foreign governments. Normally, the fund
invests at least 25% of its net assets in domestic or dollar-denominated foreign
bank obligations.
What other factors influenced the fund's performance?
When the reporting period began in December 2002, the U.S. economy appeared to
be gathering momentum in the wake of the Federal Reserve Board's (the "Fed")
November interest-rate reduction of 50 basis points, which drove the federal
funds rate down to just 1.25%. Retail sales came in higher than most analysts
had expected, and the stock market began to rally. In addition, consumer
confidence improved during December. Nonetheless, the fourth quarter's GDP
growth rate came in at an estimated annualized rate of just 1.4%.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
During the first quarter of 2003, the economy sent mixed signals, and hopes of a
more robust economic rebound faded. Home sales rose in January, but consumer
confidence fell to new lows. Manufacturing expanded in January but fell in
February. For its part, the Fed kept the federal funds rate unchanged at 1.25%.
In March, the outbreak of hostilities in Iraq clouded the economic picture. The
Fed indicated at the time that uncertainty regarding the war with Iraq was so
great that it could not adequately assess the economic risks. Nonetheless, as
the conflict progressed, the market's focus appeared to shift toward
expectations of a quick resolution to the war, causing money market yields to
rise at the longer end of the curve.
After the war began to wind down in April, investors' attention returned to the
problems underlying the weak U.S. economy. The manufacturing sector contracted
in April, and the unemployment rate rose to 6%, suggesting lingering caution
among businesses reluctant to resume hiring and production. In addition,
uncertainty remained as to the prospects for continued spending among consumers,
as revised estimates of U.S. economic growth for the first quarter of 2003 came
in at a relatively disappointing 1.9%.
In May, the economy showed signs of gradual improvement. A key purchasing index
rose significantly over the previous month's levels, suggesting that the
manufacturing sector may be improving and the worst may be over. Consumer
confidence rebounded to its highest levels in almost a year, indicating that
consumers were becoming increasingly optimistic after reining in their spending
during the Iraq war. These encouraging signs were supported by other potentially
constructive factors, including gains in the stock market, low inflation,
declining oil prices, gains in productivity and pending tax cuts. However, at
its meeting in early May, the Fed adopted a relatively cautious stance, citing
disappointing numbers related to employment and production. The Fed also stated
that economic risks were "weighted toward weakness for the foreseeable future."
What is the fund's current strategy?
Despite the encouraging signs that arose during May, we remain cautious
regarding the prospects for a quick pickup in economic growth. We believe that
more solid evidence is required to support a sustainable rebound in economic
activity among consumers and businesses. In fact, by the reporting period's end,
market expectations had begun to build that the Fed was likely to cut interest
rates further if the economy did not expand more robustly by its meeting in late
June. These expectations have recently been reflected by lower yields among
money market securities.
Because the current money market yield curve is relatively flat, we have begun
to allow the fund's weighted average maturity to shorten gradually. Accordingly,
the fund ended the reporting period with a weighted average maturity that
remained longer than its peer group average, but less so than it had been in
previous months.
June 16, 2003
(1) ANNUALIZED EFFECTIVE YIELD IS BASED UPON DIVIDENDS DECLARED DAILY AND
REINVESTED MONTHLY. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. YIELDS
FLUCTUATE. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR
THE U.S. GOVERNMENT. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND. YIELDS PROVIDED FOR THE FUND'S CLASS B AND CLASS X SHARES REFLECT THE
ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN
UNDERTAKING IN EFFECT THAT MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME.
HAD THESE EXPENSES NOT BEEN ABSORBED, THE FUND'S CLASS B AND CLASS X YIELDS
WOULD HAVE BEEN LOWER.
The Fund
STATEMENT OF INVESTMENTS
May 31, 2003 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT--50.6% Amount ($) Value ($)
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ABN-AMRO Bank N.V. (London)
1.26%--1.65%, 6/30/2003--9/22/2003 150,000,000 150,028,789
Alliance & Leicester PLC (London)
1.30%--1.65%, 7/15/2003--11/12/2003 250,000,000 250,001,735
BNP Paribas (Yankee)
1.20%, 5/19/2004 100,000,000 99,995,156
Bank of Scotland (Yankee)
2.57%, 7/1/2003 100,000,000 99,998,379
Barclays Bank PLC (London)
1.70%, 6/26/2003 100,000,000 100,037,962
Canadian Imperial Bank of Commerce (Yankee)
1.28%, 6/23/2003 50,000,000 (a) 49,998,639
Credit Agricole Indosuez S.A. (Yankee)
1.30%--1.31%, 10/22/2003--3/15/2004 250,000,000 (a) 249,982,168
Credit Lyonnais N.A. Inc. (London)
1.32%, 7/17/2003 100,000,000 100,001,269
Credit Lyonnais N.A. Inc. (Yankee)
1.28%, 6/24/2003--7/23/2003 250,000,000 249,999,523
First Tennessee Bank N.A.
1.22%, 8/6/2003 125,000,000 125,000,000
HBOS Treasury Services PLC (London)
1.24%--1.38%, 6/16/2003--7/3/2003 200,000,000 199,997,814
ING Bank N.V. (London)
1.65%, 9/22/2003 50,000,000 50,028,355
Landesbank Hessen-Thueringen Girozentrale (London)
1.28%, 11/26/2003 200,000,000 200,004,897
Marshall & Ilsley Bank Milwaukee, WI (Yankee)
1.30%, 3/17/2004 200,000,000 (a) 199,968,052
Natexis Banques Populaires (Yankee)
1.26%, 10/17/2003 200,000,000 199,996,191
Nordea Bank Finland PLC (Yankee)
1.32%, 1/12/2004 100,000,000 (a) 99,996,892
Societe Generale (Yankee)
1.31%, 3/8/2004 250,000,000 (a) 249,971,494
Swedbank (Yankee)
1.30%, 9/26/2003 50,000,000 (a) 49,998,396
Swedbank (Yankee)
2.60%, 7/7/2003 100,000,000 99,999,028
Toronto-Dominion Bank (Yankee)
1.42%--2.56%, 7/1/2003--8/12/2003 135,000,000 135,021,274
Principal
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT (CONTINUED) Amount ($) Value ($)
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Unicredito Italiano Spa (London)
1.28%--1.64%, 7/23/2003--10/6/2003 200,000,000 200,002,602
Wachovia Bank & Trust Co.
1.30%, 10/20/2003 200,000,000 (a) 200,000,000
Westdeutsche Landesbank Girozentrale (Yankee)
1.28%--2.60%, 6/3/2003--11/25/2003 350,000,000 349,999,271
Wilmington Trust Co.
1.23%, 8/27/2003 100,000,000 100,000,000
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $3,810,027,886) 3,810,027,886
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COMMERCIAL PAPER--16.6%
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Altria Group Inc.
1.30%, 6/3/2003 70,000,000 69,994,944
Amstel Funding Corp.
1.29%, 7/31/2003 100,000,000 (b) 99,786,667
Bank of America Corp.
1.23%, 7/10/2003 50,000,000 49,933,375
Depfa Bank PLC
1.23%, 7/7/2003 13,000,000 12,984,010
Eurohypo AG
1.30%, 8/13/2003 100,000,000 99,737,403
General Electric Co.
1.28%, 6/27/2003 100,000,000 99,908,278
General Electric Capital Corp.
1.20%, 8/27/2003 300,000,000 299,130,000
General Electric Capital Services Inc.
1.30%, 10/29/2003--11/3/2003 175,000,000 174,045,938
Hamburgische Landesbank Girozentrale
1.29%, 10/9/2003--10/10/2003 200,000,000 199,072,000
ING (U.S.) Funding LLC
1.35%, 6/2/2003 50,000,000 49,998,125
Morgan Stanley & Co. Inc.
1.39%, 12/9/2003 100,000,000 100,000,000
TOTAL COMMERCIAL PAPER
(cost $1,254,590,740) 1,254,590,740
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
CORPORATE NOTES--12.1% Amount ($) Value ($)
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American Honda Finance Corp.
1.30%, 7/22/2003 125,000,000 (a) 125,000,000
CC USA Inc.
1.33%, 7/15/2003 190,000,000 (a,b) 190,000,000
Merrill Lynch & Co. Inc.
1.27%, 4/16/2004 150,000,000 (a) 150,000,000
Paradigm Funding LLC
1.27%, 10/1/2003 200,000,000 (a,b) 200,000,000
Sigma Finance Inc.
1.34%--1.36%, 6/2/2003--7/1/2003 150,000,000 (a,b) 150,000,000
Societe Generale
1.31%, 2/18/2004 100,000,000 (a) 99,990,754
TOTAL CORPORATE NOTES
(cost $914,990,754) 914,990,754
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PROMISSORY NOTES--3.3%
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Goldman Sachs Group Inc.
1.41%--2.14%, 7/11/2003--1/21/2004
(cost $245,000,000) 245,000,000 (c) 245,000,000
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SHORT-TERM BANK NOTES--8.6%
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Bank One N.A.
1.30%, 8/15/2003--1/12/2004 200,000,000 (a) 199,990,752
National City Bank
1.29%--1.31%, 8/22/2003--2/23/2004 350,000,000 (a) 350,003,498
Swedbank
1.28%, 9/10/2003 100,000,000 (a) 99,991,668
TOTAL SHORT-TERM BANK NOTES
(cost $649,985,918) 649,985,918
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U.S. GOVERNMENT AGENCIES--.7%
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Federal Home Loan Banks, Notes
1.24%, 6/22/2004
(cost $50,000,000) 50,000,000 50,000,000
Principal
TIME DEPOSITS--8.5% Amount ($) Value ($)
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ABN-AMRO Bank (Grand Cayman)
1.28%, 6/2/2003 150,000,000 150,000,000
Dexia Bank (Grand Cayman)
1.28%, 6/2/2003 150,000,000 150,000,000
Fifth Third Bank (Grand Cayman)
1.28%, 6/2/2003 100,000,000 100,000,000
Fleet National Bank (Grand Cayman)
1.34%, 6/2/2003 200,000,000 200,000,000
State Street Bank & Trust Co. (Grand Cayman)
1.21%, 6/2/2003 42,000,000 42,000,000
TOTAL TIME DEPOSITS
(cost $642,000,000) 642,000,000
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TOTAL INVESTMENTS (cost $7,566,595,298) 100.4% 7,566,595,298
LIABILITIES, LESS CASH AND RECEIVABLES (.4%) (29,494,776)
NET ASSETS 100.0% 7,537,100,522
(A) VARIABLE INTEREST RATE--SUBJECT TO PERIODIC CHANGE.
(B) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT MAY 31, 2003, THESE
SECURITIES AMOUNTED TO $639,786,667 OR 8.5% OF NET ASSETS.
(C) THESE NOTES WERE ACQUIRED FOR INVESTMENT, AND NOT WITH THE INTENT TO
DISTRIBUTE OR SELL. SECURITIES RESTRICTED AS TO PUBLIC RESALE. THESE SECURITIES
WERE ACQUIRED FROM 7/16/02 TO 2/25/03 AT A COST OF $245,000,000. AT MAY 31,
2003, THE AGGREGATE VALUE OF THESE SECURITIES WAS $245,000,000 OR 3.3% OF NET
ASSETS AND ARE VALUED AT AMORTIZED COST.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2003 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 7,566,595,298 7,566,595,298
Cash 6,510
Interest receivable 29,222,766
Prepaid expenses 166,520
7,595,991,094
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 6,044,783
Payable for investment securities purchased 50,000,000
Payable for shares of Common Stock redeemed 2,593,883
Accrued expenses 251,906
58,890,572
- --------------------------------------------------------------------------------
NET ASSETS ($) 7,537,100,522
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 7,537,102,150
Accumulated net realized gain (loss) on investments (1,628)
- --------------------------------------------------------------------------------
NET ASSETS ($) 7,537,100,522
NET ASSET VALUE PER SHARE
Class A Class B Class X
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Net Assets ($) 1,404,454,098 6,132,487,914 158,510
Shares Outstanding 1,404,490,425 6,132,453,211 158,514
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NET ASSET VALUE PER SHARE ($) 1.00 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2003 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 54,728,389
EXPENSES:
Management fee--Note 2(a) 18,435,467
Shareholder servicing costs--Note 2(c) 9,478,904
Distribution fees, service fees and prospectus--Note 2(b) 7,402,866
Custodian fees 144,040
Registration fees 112,260
Directors' fees and expenses--Note 2(d) 94,296
Professional fees 29,488
Prospectus and shareholders' reports 15,905
Miscellaneous 38,394
TOTAL EXPENSES 35,751,620
Less--reduction in shareholder servicing costs
due to undertaking--Note 2(c) (228,341)
NET EXPENSES 35,523,279
INVESTMENT INCOME--NET 19,205,110
- --------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($) 2,111
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 19,207,221
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
May 31, 2003 Year Ended
(Unaudited) November 30, 2002
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OPERATIONS ($):
Investment income--net 19,205,110 84,953,550
Net realized gain (loss) on investments 2,111 120,459
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 19,207,221 85,074,009
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DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A Shares (5,210,948) (21,557,165)
Class B Shares (13,993,811) (63,394,048)
Class X Shares (351) (2,337)
TOTAL DIVIDENDS (19,205,110) (84,953,550)
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CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A Shares 3,509,118,880 7,659,411,969
Class B Shares 7,240,368,188 14,614,130,063
Class X Shares -- 12,830
Dividends reinvested:
Class A Shares 5,150,187 21,033,870
Class B Shares 13,099,037 56,427,944
Class X Shares 181 1,383
Cost of shares redeemed:
Class A Shares (3,666,180,244) (7,503,864,979)
Class B Shares (6,579,966,738) (13,925,485,108)
Class X Shares (920) (146,242)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 521,588,571 921,521,730
TOTAL INCREASE (DECREASE) IN NET ASSETS 521,590,682 921,642,189
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NET ASSETS ($):
Beginning of Period 7,015,509,840 6,093,867,651
END OF PERIOD 7,537,100,522 7,015,509,840
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information reflects financial results for a
single fund share. Total return shows how much your investment in the fund would
have increased (or decreased) during each period, assuming you had reinvested
all dividends and distributions. These figures have been derived from the fund's
financial statements.
Six Months Ended
May 31, 2003 Year Ended November 30,
-----------------------------------------------------------------------
CLASS A SHARES (Unaudited) 2002 2001 2000 1999 1998
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PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .004 .014 .041 .056 .044 .049
Distributions:
Dividends from
investment income--net (.004) (.014) (.041) (.056) (.044) (.049)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) .72(a) 1.43 4.21 5.77 4.53 4.98
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses
to average net assets .77(a) .77 .79 .78 .78 .77
Ratio of net investment
income to average
net assets .72(a) 1.42 4.03 5.64 4.44 4.88
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Net Assets, end of period
( $x 1,000) 1,404,454 1,556,365 1,379,758 982,685 863,981 835,706
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
May 31, 2003 Year Ended November 30,
------------------------------------------------------------------------------
CLASS B SHARES (Unaudited) 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .002 .012 .039 .054 .042 .047
Distributions:
Dividends from
investment
income--net (.002) (.012) (.039) (.054) (.042) (.047)
Net asset value,
end of period 1.00 1.00 1.00 1.00 1.00 1.00
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TOTAL RETURN (%) .48(a) 1.20 3.98 5.53 4.32 4.78
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RATIOS/SUPPLEMENTAL
DATA (%):
Ratio of expenses
to average net assets 1.01(a) 1.00 1.00 1.00 1.00 1.00
Ratio of net investment
income to average
net assets .47(a) 1.19 3.81 5.41 4.24 4.66
Decrease reflected in
above expense ratios
due to undertakings
by The Dreyfus
Corporation .01(a) .01 .03 .02 .03 .06
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Net Assets,
end of period
($x 1,000) 6,132,488 5,458,986 4,713,819 3,338,285 3,056,844 2,427,332
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
May 31, 2003 Year Ended November 30,
----------------------------------------------
CLASS X SHARES (Unaudited) 2002 2001 2000 1999(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .002 .012 .039 .054 .021
Distributions:
Dividends from investment income--net (.002) (.012) (.039) (.054) (.021)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) .44(b) 1.16 3.94 5.49 4.33(b)
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.05(b) 1.05 1.05 1.05 1.05(b)
Ratio of net investment income
to average net assets .44(b) 1.20 4.03 5.43 4.01(b)
Decrease reflected in above
expense ratios due to undertakings
by The Dreyfus Corporation .07(b) .14 .13 .06 .25(b)
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Net Assets, end of period ( $x 1,000) 159 159 291 478 554
(A) FROM JUNE 1, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO NOVEMBER 30, 1999.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
General Money Market Fund, Inc. (the "fund") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as a diversified open-end
management investment company. The fund's investment objective is to provide
investors with as high a level of current income as is consistent with the
preservation of capital. The Dreyfus Corporation (the "Manager") serves as the
fund's investment adviser. The Manager is a wholly-owned subsidiary of Mellon
Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Dreyfus Service 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 three classes of shares: Class A (15 billion shares authorized), Class B
(10 billion shares authorized) and Class X (500 million shares authorized).
Class A, Class B and Class X shares are identical except for the services
offered to and the expenses borne by each class and certain voting rights. Class
A shares are subject to a Service Plan adopted pursuant to Rule 12b-1 under the
Act, Class B and Class X shares are subject to a Distribution Plan adopted
pursuant to Rule 12b-1 under the Act and Class A, Class B and Class X shares are
subject to a Shareholder Services Plan. In addition, Class B shares are charged
directly for sub-accounting services provided by Service Agents (a securities
dealer, financial institution or other industry professional) at an annual rate
of .05% of the value of the average daily net assets of Class B shares.
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 fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States, which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.
(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 fund's
Board of Directors to represent the fair value of the fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of discount and premium on investments, is earned from
the settlement date and recognized on the accrual basis. Cost of investments
represents amortized cost. Under the terms of the custody agreement, the fund
receives net earnings credits based on available cash balances left on deposit.
The fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the Manager, subject to the seller's agreement to
repurchase and the fund's agreement to resell such securities at a mutually
agreed upon price. Securities purchased subject to repurchase agreements are
deposited with the fund's custodian and, pursuant to the terms of the repurchase
agreement, must have an aggregate market value greater than or equal to the
repurchase price plus accrued interest at all times. If the value of the
underlying securities falls below the value of the repurchase price plus accrued
interest, the fund will require the seller to deposit additional collateral by
the next business day. If the request for additional collateral is not met, or
the seller defaults on its repurchase obligation, the fund maintains the right
to sell the underlying securities at market value and may claim any resulting
loss 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 gain, 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 gain can
be offset by capital loss carryovers, it is the policy of the fund not to
distribute such gain.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(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.
The fund has an unused capital loss carryover of $3,739 available for federal
income tax purposes to be applied against future net securities profits, if any,
realized subsequent to November 30, 2002. If not applied, the carryover expires
in fiscal 2008.
The tax character of distributions paid to shareholders during the fiscal year
ended November 30, 2002 was all ordinary income. The tax character of current
year distributions will be determined at the end of the current fiscal year.
At May 31, 2003, 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 ("Agreement") with the Manager, the
management fee is computed at the annual rate of .50 of 1% 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 net assets, the fund may deduct from
payments to be made to the Manager, or the Manager will bear such excess
expense. During the period ended May 31, 2003, there was no expense
reimbursement pursuant to the Agreement.
(B) Under the Service Plan with respect to Class A shares (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 1% 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 1% 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 fund's Board of Directors. If a holder of Class A shares
ceases to be a client of a Service Agent, but continues to hold Class A shares,
the Manager will be permitted to act as a Service Agent in respect of such fund
shareholders and receive payments under the Service Plan for Servicing. The fees
payable for Servicing are payable without regard to actual expenses incurred.
During the period ended May 31, 2003, Class A shares were charged $1,457,531
pursuant to the Plan.
Under the Distribution Plan with respect to Class B ("Class B Distribution
Plan") adopted pursuant to Rule 12b-1 under the Act, Class B shares bear
directly the costs of preparing, printing and distributing prospectuses and
statements of additional information and of implementing and operating the Class
B Distribution Plan, such aggregate amount not to exceed in any fiscal year of
the fund, the greater of $100,000 or .005 of 1% 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 1% of the value of the average daily net assets of Class B. During
the period ended May 31, 2003, Class B shares were charged $5,945,137 pursuant
to the Class B Distribution Plan.
Under the Distribution Plan with respect to Class X ("Class X Distribution
Plan") adopted pursuant to Rule 12b-1 under the Act, Class X shares pay the
Distributor for distributing Class X shares at an
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
annual rate of .25 of 1% of the value of the average daily net assets of Class
X. During the period ended May 31, 2003, Class X shares were charged $198
pursuant to the Class X 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 1% of the value of the average daily net
assets of Class A for certain allocated expenses of providing personal services
and/or maintaining shareholder accounts. The services provided may include
personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding Class A shares and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended May 31, 2003, Class A shares were charged $256,357
pursuant to the Class A Shareholder Services Plan.
Under the Shareholder Services Plan with respect to Class B and Class X
("Shareholder Services Plan"), Class B and Class X shares pay the Distributor at
an annual rate of .25 of 1% of the value of the average daily net assets of
Class B and Class X for servicing shareholder accounts. The services provided
may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding Class B and Class X 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, 2002 through May 31, 2003 that if
the aggregate expenses of Class B shares of the fund, exclusive of taxes,
brokerage fees, interest on borrowings and extraordinary expenses, exceed 1.01%
of the value of the average daily net assets of Class B, the Manager would
reimburse the expenses of the fund under the Class B Shareholder Services Plan
to the extent of any excess expense and up to the full fee payable under the
Class B Shareholder Services Plan. The Manager had undertaken from December 1,
2002 through May 31, 2003, that if the aggregate expenses of Class X shares
of the fund, exclusive of taxes, brokerage fees, interest on borrowings and
extraordinary expenses, exceed 1.05% of the value of the average daily net
assets of Class X, the Manager would reimburse the expenses of the fund under
the Class X Shareholder Services Plan to the extent of any excess expense and up
to the full fee payable under the Class X Shareholder Services Plan. During the
period ended May 31, 2003, Class B and Class X shares were charged $7,402,554
and $198, respectively, pursuant to the Shareholder Services Plan, of which
$228,289 and $52, respectively, were reimbursed by the Manager.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended May 31, 2003, the fund was charged $209,907 pursuant to the transfer
agency agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Each Board member who is not
an "affiliated person" as defined in the Act receives an annual fee of $50,000
and an attendance fee of $6,500 for each in-person meeting and $500 for
telephone meetings. These fees are allocated among the funds in the Fund Group
in proportion to each fund's relative net assets. The Chairman of the Board
receives an additional 25% of such compensation. Subject to the fund's Emeritus
Program Guidelines, Emeritus Board members, if any, receive 50% of the annual
retainer fee and per meeting fee paid at the time the Board member achieves
emeritus status.
The Fund
For More Information
General Money
Market Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, New York 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call
1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to info@dreyfus.com
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2003 Dreyfus Service Corporation 196SA0503
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. [RESERVED]
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Based on an evaluation of the Disclosure Controls and Procedures (as
defined in Rule 30a-2(c) under the Investment Company Act of 1940, the
"Disclosure Controls") as of a date within 90 days prior to the filing date
(the "Filing Date") of this Form N-CSR (the "Report"), the Disclosure
Controls are effectively designed to ensure that information required to be
disclosed by the Registrant in the Report is recorded, processed, summarized
and reported by the Filing Date, including ensuring that information required
to be disclosed in the Report is accumulated and communicated to the
Registrant's management, including the Registrant's principal executive
officer and principal financial officer, as appropriate to allow timely
decisions regarding required disclosure.
(b) There were no significant changes in the Registrant's internal controls
or in other factors that could significantly affect these controls subsequent
to the date of their evaluation, and there were no corrective actions with
regard to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
(a) Not applicable.
(b)(1) Certifications of principal executive officer and principal
financial officer as required by Rule 30a-2 under the Investment Company Act
of 1940.
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/ STEPHEN E. CANTER
Stephen E. Canter
President
Date: July 30, 2003
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/ STEPHEN E. CANTER
Stephen E. Canter
Chief Executive Officer
Date: July 30, 2003
By: /S/ JAMES WINDELS
James Windels
Chief Financial Officer
Date: July 30, 2003
EXHIBIT INDEX
(b)(1) Certifications of principal executive officer and
principal financial officer as required by Rule 30a-2 under the
Investment Company Act of 1940.
(b)(2) Certification of principal executive officer and
principal financial officer as required by Section 906 of the
Sarbanes-Oxley Act of 2002.