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: 811-3456
GENERAL GOVERNMENT SECURITIES MONEY MARKET FUNDS, 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 Government
Securities Money
Market Fund
SEMIANNUAL REPORT May 31, 2003
YOU, YOUR ADVISOR AND
DREYFUS
A MELLON FINNACIAL 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
- --------------------------------------------------
2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
8 Statement of Assets and Liabilities
9 Statement of Operations
10 Statement of Changes in Net Assets
11 Financial Highlights
13 Notes to Financial Statements
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
General Government Securities
Money Market Fund
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for General Government Securities Money Market Fund
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 Government Securities Money Market Fund perform during the
period?
During the six-month period ended May 31, 2003, the fund produced annualized
yields of 0.64% for Class A shares and 0.40% for Class B shares. Taking into
account the effects of compounding, the fund produced annualized effective
yields of 0.64% for Class A shares and 0.40% for Class B shares.(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 and the maintenance of liquidity.
To pursue this goal, the fund invests in securities issued or guaranteed by the
U.S. government or its agencies or instrumentalities, and repurchase agreements
collateralized by these securities.
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 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%.
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%.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
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
short-term U.S. government 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 $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND. YIELDS PROVIDED FOR THE FUND'S CLASS B SHARES REFLECT THE ABSORPTION OF
FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT
THAT MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT
BEEN ABSORBED, THE CLASS B YIELDS WOULD HAVE BEEN LOWER.
The Fund
STATEMENT OF INVESTMENTS
May 31, 2003 (Unaudited)
Annualized
Yield on
Date of Principal
U.S. GOVERNMENT AGENCIES--108.3% Purchase (%) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Federal Farm Credit Bank, Consolidated
Systemwide Notes
11/4/2003 1.42 1,500,000 1,521,475
Federal Farm Credit Bank, Consolidated
Systemwide Floating Rate Notes
6/2/2003 1.25 (a) 50,000,000 49,999,967
6/2/2004 1.28 (a) 45,000,000 45,004,521
Federal Home Loan Banks, Discount Notes
6/2/2003 1.26 225,000,000 224,992,125
6/11/2003 1.18 50,000,000 49,983,611
8/14/2003 1.78 19,000,000 18,931,653
8/20/2003 1.15 100,000,000 99,744,445
12/30/2003 1.25 25,000,000 24,818,033
Federal Home Loan Banks, Floating Rate Notes
6/27/2002 1.27 (a) 50,000,000 49,999,121
9/8/2003 1.27 (a) 50,000,000 50,000,000
10/24/2003 1.20 (a) 100,000,000 100,000,000
7/30/2004 1.26 (a) 150,000,000 150,000,000
12/2/2004 1.27 (a) 100,000,000 100,016,000
Federal Home Loan Banks, Notes
5/14/2004 1.38 50,000,000 50,000,000
6/22/2004 1.24 50,000,000 50,000,000
Federal Home Loan Mortgage Corporation,
Discount Notes
8/25/2003 1.39 52,589,000 52,417,648
9/11/2003 1.72 25,000,000 24,880,292
11/6/2003 1.41 50,000,000 49,694,972
12/19/2003 1.27 50,000,000 49,648,250
Federal Home Loan Mortgage Corporation,
Notes
11/17/2003 1.35 75,000,000 76,671,233
Federal National Mortgage Association,
Discount Notes
8/29/2003 1.15 46,860,000 46,726,774
9/24/2003 1.20 50,000,000 49,810,090
10/17/2003 1.40 25,000,000 24,867,750
11/14/2003 1.25 50,000,000 49,714,111
12/12/2003 1.25 50,000,000 49,665,889
Annualized
Yield on
Date of Principal
U.S. GOVERNMENT AGENCIES (CONTINUED) Purchase (%) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association,
Floating Rate Notes
7/22/2003 1.25 (a) 50,000,000 49,999,299
10/7/2004 1.28 (a) 100,000,000 99,959,400
10/28/2004 1.27 (a) 150,000,000 149,957,555
Federal National Mortgage Association, Notes
11/14/2003 1.39 23,500,000 23,847,733
3/15/2004 1.24 12,352,000 12,686,767
Student Loan Marketing Association,
Discount Notes
6/2/2003 1.26 30,117,000 30,115,946
TOTAL U.S. GOVERNMENT AGENCIES
(cost $1,905,674,660) 1,905,674,660
- ------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Barclays Capital Inc.
dated 5/30/2003, due 6/2/2003 in the
amount of $3,000,250 (fully collateralized
by $3,055,000 U.S. Treasury Bills,
due 8/28/2003, value $3,044,918)
(cost $3,000,000) 1.00 3,000,000 3,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $1,908,674,660) 108.5% 1,908,674,660
LIABILITIES, LESS CASH AND RECEIVABLES (8.5%) (149,904,125)
NET ASSETS 100.0% 1,758,770,535
(A) VARIABLE INTEREST RATE--SUBJECT TO PERIODIC CHANGE.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2003 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--
See Statement of Investments--Note 1(b) 1,908,674,660 1,908,674,660
Interest receivable 1,777,157
Prepaid expenses and other assets 59,095
1,910,510,912
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 1,292,801
Cash overdraft due to Custodian 252,560
Payable for investment securities purchased 150,016,000
Payable for shares of Common Stock redeemed 75,532
Accrued expenses 103,484
151,740,377
- --------------------------------------------------------------------------------
NET ASSETS ($) 1,758,770,535
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 1,758,844,377
Accumulated net realized gain (loss) on investments (73,842)
- --------------------------------------------------------------------------------
NET ASSETS ($) 1,758,770,535
NET ASSET VALUE PER SHARE
Class A Class B
- --------------------------------------------------------------------------------
Net Assets ($) 633,990,214 1,124,780,321
Shares Outstanding 634,081,225 1,124,763,152
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2003 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 11,956,647
EXPENSES:
Management fee--Note 2(a) 4,228,611
Shareholder servicing costs--Note 2(c) 1,797,173
Distribution fees, service fees and prospectus--Note 2(b) 1,697,231
Registration fees 79,986
Custodian fees 56,845
Directors' fees and expenses--Note 2(d) 23,888
Professional fees 20,971
Shareholders' reports 4,010
Miscellaneous 10,074
TOTAL EXPENSES 7,918,789
Less--reduction in shareholder servicing costs due to
undertaking--Note 2(c) (87,680)
NET EXPENSES 7,831,109
INVESTMENT INCOME--NET 4,125,538
- --------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($) 915
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,126,453
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
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 4,125,538 20,947,155
Net realized gain (loss) on investments 915 28,539
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,126,453 20,975,694
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (1,996,953) (10,213,063)
Class B shares (2,128,585) (10,734,092)
TOTAL DIVIDENDS (4,125,538) (20,947,155)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares 2,223,242,688 4,554,368,708
Class B shares 1,217,769,622 2,332,493,736
Dividends reinvested:
Class A shares 1,983,125 10,053,123
Class B shares 1,823,700 8,765,998
Cost of shares redeemed:
Class A shares (2,253,211,870) (4,707,413,531)
Class B shares (1,109,096,344) (2,153,713,780)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 82,510,921 44,554,254
TOTAL INCREASE (DECREASE) IN NET ASSETS 82,511,836 44,582,793
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 1,676,258,699 1,631,675,906
END OF PERIOD 1,758,770,535 1,676,258,699
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
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .003 .014 .040 .054 .043 .048
Distributions:
Dividends from investment
income--net (.003) (.014) (.040) (.054) (.043) (.048)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) .64(a) 1.38 4.05 5.54 4.42 4.88
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses
to average net assets .78(a) .77 .77 .76 .76 .77
Ratio of net investment income
to average net assets .64(a) 1.38 3.85 5.40 4.35 4.77
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 633,990 661,976 804,956 574,630 610,511 539,878
(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 ($):
Net asset value,
beginning of period 1.00 1.00 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .002 .011 .037 .052 .041 .046
Distributions:
Dividends from investment
income--net (.002) (.011) (.037) (.052) (.041) (.046)
Net asset value, end of period 1.00 1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) .40(a) 1.14 3.81 5.29 4.17 4.66
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses
to average net assets 1.01(a) 1.00 1.00 1.00 1.00 .97
Ratio of net investment income
to average net assets .40(a) 1.13 3.60 5.15 4.09 4.55
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation .02(a) .03 .04 .03 .03 .05
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 1,124,780 1,014,283 826,720 552,238 659,185 645,984
(A) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
General Government Securities Money Market Fund (the "fund") is a separate
diversified series of General Government Securities Money Market Funds, Inc.
(the "Company") which is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company and operates
as a series company, currently offering two series, including the fund. 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 and the
maintenance of liquidity. 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 16 billion shares of $.001 par value Common Stock. The fund currently
offers two classes of shares: Class A (10 billion shares authorized) and Class B
(6 billion shares authorized). Class A shares and Class B 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 shares are subject to a
Distribution Plan adopted pursuant to Rule 12b-1 under the Act and Class A and
Class B shares are subject to a Shareholder Services Plan. In addition, Class B
shares are charged directly for sub-accounting services provided by Service
Agents (a securities dealer, financial institution or other industry
professional) at an annual rate of .05% of the value of the average daily net
assets of Class B shares.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 investment, is earned from
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 fund's 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.
(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 $80,001 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, $21,009 of the
carryover expires in fiscal 2005, $17,123 expires in fiscal 2007 and $41,869
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).
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 costs of
preparing, printing and distributing prospectuses and statements of additional
information and implementing and of 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 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 $629,155 pursuant to the Plan.
Under the Distribution Plan with respect to Class B shares ("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 aggregate 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 $1,068,076 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 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 the fund 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 $139,795
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 1% of the value of the average daily net assets of Class B 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 Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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. During the period ended May 31, 2003, Class B
shares were charged, $1,330,498 pursuant to the Class B Shareholder Services
Plan, of which $87,680 was 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 $32,251, 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 relative to each fund's net assets. The Chairman of the Board
receives an additional 25% of such compensation. Subject to the Company'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.
NOTES
For More Information
General Government Securities
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
100 Church Street
New York, NY 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 975SA0503
General
Treasury Prime
Money Market Fund
SEMIANNUAL REPORT May 31, 2003
YOU, YOUR ADVISOR AND
DREYFUS
A MELLON FINNACIAL 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
- --------------------------------------------------
2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
7 Statement of Assets and Liabilities
8 Statement of Operations
9 Statement of Changes in Net Assets
10 Financial Highlights
13 Notes to Financial Statements
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
General Treasury Prime
Money Market Fund
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for General Treasury Prime Money Market Fund, 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 Treasury Prime Money Market Fund perform during the period?
During the six-month period ended May 31, 2003, the fund produced annualized
yields of 0.53% for Class A shares, 0.33% for Class B shares and 0.27% for Class
X shares. Taking into account the effects of compounding, the fund produced
annualized effective yields of 0.53% for Class A shares, 0.33% for Class B
shares and 0.28% 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 and the maintenance of liquidity. To pursue this goal,
the fund normally invests substantially all of its assets in U.S. Treasury
securities.
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 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%.
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%.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
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
short-term U.S. Treasury 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 $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND. YIELDS PROVIDED FOR THE FUND'S CLASS B AND CLASS X SHARES REFLECT THE
ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN
UNDERTAKING IN EFFECT THAT MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME.
HAD THESE EXPENSES NOT BEEN ABSORBED, THE FUND'S CLASS B AND CLASS X YIELDS
WOULD HAVE BEEN LOWER.
The Fund
STATEMENT OF INVESTMENTS
May 31, 2003 (Unaudited)
STATEMENT OF INVESTMENTS
Annualized
Yield on
Date of Principal
U.S. TREASURY BILLS--86.3% Purchase (%) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
6/12/2003 1.14 493,000 492,828
6/19/2003 1.18 874,000 873,484
6/26/2003 1.17 12,000,000 11,990,292
7/3/2003 1.06 9,831,000 9,821,704
7/10/2003 1.20 203,000 202,737
7/17/2003 1.17 10,070,000 10,055,030
7/24/2003 1.12 3,400,000 3,394,394
7/31/2003 1.09 7,639,000 7,625,070
8/21/2003 1.05 3,467,000 3,458,822
8/28/2003 1.06 2,406,000 2,399,790
10/9/2003 1.11 5,000,000 4,980,139
11/13/2003 1.09 2,000,000 1,990,100
TOTAL U.S. TREASURY BILLS
(cost $57,284,390) 57,284,390
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY NOTES--13.7%
- ------------------------------------------------------------------------------------------------------------------------------------
3.875%, 6/30/2003 2.28 2,000,000 2,002,411
3.875%, 7/31/2003 1.72 2,000,000 2,006,966
3.625%, 3/31/2004 1.22 5,000,000 5,097,006
TOTAL U.S. TREASURY NOTES
(cost $9,106,383) 9,106,383
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $66,390,773) 100.0% 66,390,773
CASH AND RECEIVABLES (NET) 0.0% 23,120
NET ASSETS 100.0% 66,413,893
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2003 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 66,390,773 66,390,773
Cash 217
Interest receivable 89,149
Prepaid expenses 3,345
66,483,484
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 45,594
Accrued expenses 23,997
69,591
- --------------------------------------------------------------------------------
NET ASSETS ($) 66,413,893
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 66,411,180
Accumulated net realized gain (loss) on investments 2,713
- --------------------------------------------------------------------------------
NET ASSETS ($) 66,413,893
NET ASSET VALUE PER SHARE
Class A Class B Class X
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets ($) 30,580,401 35,820,992 12,500
Shares Outstanding 30,578,625 35,820,055 12,500
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 1.00 1.00 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2003 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 385,512
EXPENSES:
Management fee--Note 2(a) 145,854
Shareholder servicing costs--Note 2(c) 66,072
Distribution fees, service fees and prospectus--Note 2(b) 59,364
Professional fees 12,958
Custodian fees 4,656
Registration fees 4,589
Shareholders' reports 2,327
Miscellaneous 1,252
Directors' fees and expenses--Note 2(d) 969
TOTAL EXPENSES 298,041
Less--reduction in service plan fees and shareholder servicing costs
due to undertaking--Note 2 (b,c) (32,124)
NET EXPENSES 265,917
INVESTMENT INCOME--NET 119,595
- --------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 1(B) ($) 2,777
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 122,372
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
May 31, 2003 Year Ended
(Unaudited) November 30, 2002
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 119,595 490,980
Net realized gain (loss) on investments 2,777 6,141
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 122,372 497,121
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (68,337) (372,855)
Class B shares (51,241) (118,076)
Class X shares (17) (49)
TOTAL DIVIDENDS (119,595) (490,980)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares 29,859,782 90,612,542
Class B shares 58,943,599 81,092,618
Class X shares -- 11,500
Dividends reinvested:
Class A shares 67,972 369,481
Class B shares 51,281 117,978
Cost of shares redeemed:
Class A shares (29,776,850) (127,253,599)
Class B shares (46,053,664) (70,319,942)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 13,092,120 (25,369,422)
TOTAL INCREASE (DECREASE) IN NET ASSETS 13,094,897 (25,363,281)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 53,318,996 78,682,277
END OF PERIOD 66,413,893 53,318,996
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .003 .011 .034 .051
Distributions:
Dividends from investment income--net (.003) (.011) (.034) (.051)
Net asset value, end of period 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) .52(c) 1.07 3.49 5.21
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .80(c) .78 .80 .80
Ratio of net investment income
to average net assets .53(c) 1.13 3.25 5.49
Decrease reflected in above
expense ratios due to undertaking
by The Dreyfus Corporation .09(c) .00(b) .08 .43
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 30,580 30,428 66,694 20,179
(A) FROM DECEMBER 1, 1999 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 2000.
(B) AMOUNT REPRESENTS LESS THAN .01% PER SHARE.
(C) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
May 31, 2003 Year Ended November 30,
--------------------------------------------
CLASS B SHARES (Unaudited) 2002 2001 2000(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .002 .009 .032 .049
Distributions:
Dividends from investment income--net (.002) (.009) (.032) (.049)
Net asset value, end of period 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) .32(b) .86 3.27 5.00
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.00(b) 1.00 1.00 1.00
Ratio of net investment income
to average net assets .31(b) .84 2.94 5.14
Decrease reflected in above
expense ratios due to undertaking
by The Dreyfus Corporation .13(b) .08 .13 4.97
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 35,821 22,878 11,987 5,385
(A) FROM DECEMBER 1, 1999 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 2000.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
May 31, 2003 Year Ended November 30,
---------------------------------------------
CLASS X SHARES (Unaudited) 2002 2001 2000(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 1.00 1.00 1.00 1.00
Investment Operations:
Investment income--net .001 .008 .032 .048
Distributions:
Dividends from investment income--net (.001) (.008) (.032) (.048)
Net asset value, end of period 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) .28(b) .82 3.22 4.94
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.05(b) 1.05 1.05 1.05
Ratio of net investment income
to average net assets .27(b) .74 3.03 4.55
Decrease reflected in above
expense ratios due to undertaking
by The Dreyfus Corporation .26(b) .42 3.24 20.13
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 13 12 1 1
(A) FROM DECEMBER 1, 1999 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 2000.
(B) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
General Treasury Prime Money Market Fund, (the "fund") is a separate diversified
series of General Government Securities Money Market Funds, Inc. (the
"Company"), which is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company and operates
as a series company, currently offering two series, including the fund. 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 and the
maintenance of liquidity. 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 3 billion shares of $.001 par value Common Stock. The fund currently
offers three classes of shares: Class A (1 billion shares authorized), Class B
(1 billion shares authorized) and Class X (1 billion 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 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.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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
settlement date and is 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.
(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.
(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 $64 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 2009.
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
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 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 $26,254 pursuant to the Plan, of which $3,488 was
reimbursed by the Manager, due to an undertaking, see Note 2(c).
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 $33,094 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 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 $16 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 o 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.
The Manager had undertaken from December 1, 2002 through May 31, 2003, that if
the aggregate expenses of Class A shares, exclusive of taxes, brokerage fees,
interest on borrowings and extraordinary expenses, exceed .80 of 1% of the value
of the average daily net assets of Class A, the Manager would reimburse the
expenses of the fund under the Class A Shareholder Services Plan, to the extent
of any excess expense and up to the full fee payable under the Class A
Shareholder Services Plan. During the period ended May 31, 2003, Class A shares
were charged $8,172 pursuant to the Class A Shareholder Services Plan, all of
which was reimbursed by the Manager.
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 shares 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 and Class X shares, exclusive of
taxes, brokerage fees, interest on borrowings and extraordinary expenses exceed
1% for Class B shares and 1.05% for Class X shares, of the average daily net
assets of such class, the Manager would reimburse the expenses of the fund under
the Shareholder Services Plan, to the extent of any excess expense and up to the
full fee
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
payable under the Shareholder Services Plan. During the period ended May 31,
2003, Class B and Class X shares were charged $40,671 and $16, respectively,
pursuant to the Shareholder Services Plan, of which $20,448 and $16,
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 $1,292 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 Company'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.
NOTES
For More Information
General Treasury
Prime 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
100 Church Street
New York, NY 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 387SA0503
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 GOVERNMENT SECURITIES MONEY MARKET FUNDS, 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.