<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-00594
General Securities, Incorporated
(Exact name of registrant as specified in charter)
5100 Eden Avenue, Suite 204, Edina, MN 55436
(Address of principal executive offices) (Zip code)
Craig H. Robinson
5100 Eden Avenue, Suite 204, Edina, MN 55436
(Name and address of agent for service)
(952) 927-6799
(Registrant's telephone number, including area code)
Date of fiscal year end: 11/30/03
Date of reporting period: 11/30/03
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ITEM 1. REPORTS TO STOCKHOLDERS.
Annual Report
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GENERAL SECURITIES
INCORPORATED
(LOGO - DRAWING OF BIRD)
Focus on Quality
Management Systems
ANNUAL REPORT NOVEMBER 30, 2003
<Page>
TO THE SHAREHOLDERS OF
GENERAL SECURITIES
INCORPORATED
For the 12 months ended November 30, 2003 your Fund had a total return of 11.5%
while the S&P 500 returned 14.90%, proving to be a tough benchmark to beat. On a
more optimistic note, since our letter in May we have completed the annual
rescoring of the S&P 500 companies and recast the Q-100 Index which removed 16
companies while adding another 12. We have also taken advantage of research
recently completed on the Q-100(R). This work indicates we can potentially get
better risk-adjusted returns by giving each company in the Fund a similar
opportunity to add value rather than relying on the largest 20-25 companies to
do all the heavy lifting. Since October 31, 2003, the Fund has been updated to
reflect these strategic improvements and early indications are that it is
working well and we believe this trend should continue.
The companies having the greatest positive impact on the Fund's performance over
the twelve months ended November 30, 2003 included Cisco, Intel and Cendant,
each up over 50%. Those having the greatest negative impact included SBC
Communications, Verizon and Merck, each down greater than 15%. Of the six
companies mentioned, only SBC Communications has been sold out of your Fund.
For the year ended November 30, 2003, General Securities, Incorporated paid out
a dividend of $0.23, which included $0.19 of Long Term Capital Gains and $0.04
of Ordinary Income.
We would like to say thanks again for your willingness to stay the course. We
believe this is a good time to be invested in our nation's leading "quality
companies."
Mark Billeadeau
Senior Portfolio Manager
<Page>
PERFORMANCE
November 30, 2003
General Securities, Incorporated
The following graph was prepared assuming a hypothetical investment of $10,000
on December 1, 1993. The investment return and prinicipal value of an investment
will fluctuate so that an investor's shares, when redeemed, may
[CHART]
General Securities Inc.
Average Annual Total Return
<Table>
<Caption>
1 YEAR 5 YEAR 10 YEAR
11.50% -2.9% +5.36%
</Table>
<Table>
<Caption>
GSI S&P 500 RUSSELL 3000
Nov-93 $10,000.00 $ 10,000.00 $ 10,000.00
Nov-94 $10,480.00 $ 10,106.00 $ 10,058.00
Nov-95 $13,755.00 $ 13,839.00 $ 13,749.00
Nov-96 $16,250.00 $ 17,693.00 $ 17,231.00
Nov-97 $18,539.00 $ 22,739.00 $ 21,995.00
Nov-98 $19,522.00 $ 28,135.00 $ 26,189.00
Nov-99 $23,397.00 $ 34,025.00 $ 31,655.00
Nov-00 $22,012.00 $ 32,601.00 $ 30,648.00
Nov-01 $18,741.00 $ 28,625.00 $ 27,209.00
Nov-02 $15,116.00 $ 23,921.00 $ 22,946.00
Nov-03 $16,855.00 $ 27,532.00 $ 27,131.00
</Table>
Data Provided by Morningstar
Past Performance is not indicative of future performance.
* These are the portfolios total returns during the period including
reinvestment of all dividend and capital gains distributions.
** This is an unmanaged index.
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STATEMENT OF NET ASSETS NOVEMBER 30, 2003
ASSETS
<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE (a)
---------- ------------
INVESTMENT SECURITIES (percentages represent value of
investments compared to total net assets):
COMMON STOCKS (99.4%):
Aerospace/Defense (1.76%):
Boeing Co. (c) 4,900 $ 188,111
Lockheed Martin Corp. (c) 4,000 183,760
------------
371,871
------------
Air Freight & Couriers ( .96%):
Fedex Corp. (c) 2,800 203,560
------------
Airlines ( .85%):
Southwest Airlines (c) 10,000 179,800
------------
Auto Components ( .99%):
Johnson Controls, Inc. (c) 1,900 207,936
------------
Automobiles (1.69%):
General Motors Corp. (d) 3,700 158,286
Harley Davidson, Inc. (b) 4,200 198,114
------------
356,400
------------
Banking (5.55%):
Bank America Corp. (d) 3,100 233,833
Bank One Corp. (d) 5,300 229,808
Northern Trust Corp. (c) 5,000 224,250
Suntrust Banks, Inc. (c) 3,400 241,570
Wells Fargo & Co. (d) 4,200 240,786
------------
1,170,247
------------
Beverages (2.03%):
Anheuser Busch Cos., Inc. (d) 4,200 217,644
Pepsico, Inc. (d) 4,400 211,728
------------
429,372
------------
Biotechnology (1.17%):
Amgen, Inc. (e) 4,300 247,293
------------
Chemicals (3.47%):
Air Products & Chemicals, Inc. (c) 3,900 186,966
Dow Chemical Co. 4,200 157,710
E.I. Dupont De Nemours & Co. 4,700 194,862
Monsanto Co. 7,100 192,552
------------
732,090
------------
Communications Equipment (2.84%):
Cisco Systems, Inc. (d)(e) 10,000 226,600
Corning, Inc (c)(e) 16,300 186,798
Motorola, Inc. 13,200 185,328
------------
598,726
------------
Commercial Services & Supplies (2.87%):
Cendant Corp. (c)(e) 9,400 208,304
First Data Corp. 4,900 185,465
Waste Management, Inc. (c)(e) 7,200 211,752
------------
605,521
------------
Computer Peripherals (2.58%):
Dell, Inc. (d)(e) 5,700 196,650
Hewlett Packard Co. 6,400 138,816
International Business Machines (d) 2,300 208,242
------------
543,708
------------
Containers & Packaging ( .84%):
Bemis, Inc. (d) 3,900 177,450
------------
Diversified Financials (6.26%):
American Express Co. (d) 4,000 182,840
Citigroup, Inc. 4,900 230,496
Federal Nat'l Mortgage Assn. (b) 3,200 224,000
J.P. Morgan Chase & Co. (d) 6,500 229,840
</Table>
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<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE (a)
---------- ------------
Diversified Financials (cont)
MBNA Corp. (c) 9,300 228,036
Merrill Lynch & Co., Inc. (c) 4,000 227,000
------------
1,322,212
------------
Diversified Telecommunications (2.63%):
AT&T Corp. (c) 8,800 174,504
Bellsouth Corp. (b) 8,200 213,446
Verizon Communications (d) 5,100 167,127
------------
555,077
------------
Electric Utilities (4.99%)
Entergy Corp. (c) 5,600 296,016
FPL Group (c) 4,700 298,685
Progress Energy, Inc. (c) 7,000 306,740
Southern Co. 5,200 152,204
------------
1,053,645
------------
Electrical Equipment ( .98%)
Emerson Electric Co.. (c) 3,400 207,536
------------
Electronic Equipment & Services (1.87%):
Agilent Technologies, Inc. (c)(e) 7,300 206,444
Solectron Corp. (e) 32,100 187,785
------------
394,229
------------
Energy Equipment & Services (1.15%):
Halliburton Co. (c) 10,400 242,840
------------
Food & Drug Retailing ( .52%):
Walgreen Co. (d) 3,000 110,430
------------
Food Products (1.67%):
Hershey Foods Corp. (c) 1,800 139,860
Sara Lee Corp. (b) 10,300 211,665
------------
351,525
------------
Health Care Equipment & Supplies (2.76%):
Baxter International, Inc. (c) 10,200 283,764
Medtronic, Inc. 6,600 298,320
------------
582,084
------------
Health Care Providers & Services (1.39%):
Cardinal Health, Inc. (c) 4,800 293,472
------------
Hotels, Restaurants & Leisure (1.82%):
Marriott International, Inc. (c) 4,600 210,818
Starbucks Corp (e) 5,400 173,178
------------
383,996
------------
Household Durables (1.86%):
Black & Decker Corp. (c) 4,200 194,838
Whirlpool Corp. (c) 2,900 198,128
------------
392,966
------------
Household Products ( .96%):
Proctor & Gamble Co. (d) 2,100 202,104
------------
Industrial Conglomerates (2.60%):
General Electric Co. (d) 7,200 206,424
Honeywell International Inc. (c) 6,200 184,078
3M (c) 2,000 158,080
------------
548,582
------------
Insurance (4.48%)
American International Group, Inc. (d) 3,800 220,210
Marsh & McLennan Cos., Inc. (c) 5,300 235,532
Metlife, Inc. (c) 7,600 248,444
Progressive Corp. Ohio (b) 3,100 242,110
------------
946,296
------------
Internet & Catalog Retail ( .93%)
EBay, Inc. (b) 3,500 195,475
------------
</Table>
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<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE (a)
---------- ------------
Internet Software & Services ( .83%)
Yahoo, Inc. (b)(e) 4,100 176,218
------------
IT Consulting & Services ( .92%):
Computer Sciences Corp. (c) 4,700 194,580
------------
Leisure Equipment & Producers ( .95%):
Eastman Kodak Co. (c) 8,200 199,752
------------
Machinery (2.58%):
Caterpillar, Inc. (c) 2,000 152,100
Deere & Co. (c) 3,200 195,936
Eaton Corp. (b) 1,900 195,681
------------
543,717
------------
Media (3.06%):
Walt Disney Co. (d) 9,300 214,737
Knight Ridder, Inc. (c) 2,800 208,264
Time Warner, Inc. (e) 13,700 223,036
------------
646,037
------------
Metals & Mining (1.75%):
Alcoa, Inc. (c) 5,600 183,736
Nucor Corp. (c) 3,300 185,163
------------
368,899
------------
Multiline Retail (2.79%):
Sears Roebuck Co. (c) 3,900 215,124
Target Corp. (b) 4,500 174,240
Walmart Stores, Inc. (d) 3,600 200,304
------------
589,668
------------
Multi-Utilities (1.44%):
Duke Energy Co. (c) 16,900 304,876
------------
Office Electronics ( .98%):
Xerox Corp. (c)(e) 17,000 207,060
------------
Oil & Gas (3.41%):
Anadarko Petroleum Corp. (c) 5,700 256,101
Chevron Texaco Corp. (d) 3,000 225,300
Exxon Mobil Corp. (d) 6,600 238,722
------------
720,123
------------
Paper & Forest Products ( .79%):
International Paper Co. (c) 4,500 167,445
------------
Personal Products ( .98%):
Gillette Co. (c) 6,100 205,753
------------
Pharmaceuticals (3.97%):
Johnson & Johnson (d) 5,700 280,953
Merck & Co., Inc. (d) 6,300 255,780
Pfizer, Inc. (d) 9,000 301,950
------------
838,683
------------
Semiconductor Equipment & Products (3.69%):
Analog Devices, Inc. (b) 4,100 203,975
Applied Materials, Inc. (c)(e) 7,900 191,970
Intel Corp. (d) 6,400 213,952
Texas Instruments, Inc. 5,700 169,632
------------
779,529
------------
Software (2.78%):
Intuit (b)(e) 3,800 191,064
Microsoft Corp. (d) 7,900 203,030
Oracle Corp. (e) 16,100 193,361
------------
587,455
------------
</Table>
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<Table>
<Caption>
NUMBER OF MARKET
SHARES VALUE (a)
---------- ------------
Specialty Retail (3.00%):
Best Buy Co., Inc.(b) 3,500 217,000
Home Depot, Inc.(d) 5,700 209,532
Staples, Inc.(c)(e) 7,600 206,340
------------
632,872
------------
Textiles & Apparel (1.01%):
Nike, Inc.(c) 3,200 215,200
------------
Total common stock (cost $ 18,924,131) 20,984,310
------------
REPURCHASE AGREEMENT ( .57%):
Agreement with State Street Bank, acquired on
11/28/03, interest of $1, .1% due 12/01/03
(cost $119,583) (f) 119,583
------------
Total investment securities
(cost $19,043,714) (g) 21,103,893
Receivable from advisor 33,735
Receivable for shares sold 2,375
Prepaid expenses 5,040
Interest receivable 1
Dividends receivable 44,328
------------
Total assets $ 21,189,372
------------
LIABILITIES
Payable for shares redeemed 2,965
Accrued investment advisory fees 10,335
Accrued management administration fees 6,890
Dividend payable 28,832
Other accrued expenses 38,301
------------
Total liabilities 87,323
------------
Net assets applicable to outstanding capital stock $ 21,102,049
============
Represented by:
Capital stock - authorized 10,000,000 shares of $.01
par value per share;outstanding 1,866,401 shares 18,664
Capital surplus 18,958,625
Unrealized appreciation of investments 2,124,760
------------
Net assets applicable to outstanding capital stock $ 21,102,049
============
Net asset value per share of outstanding capital stock $ 11.31
============
</Table>
See accompanying notes to investment securities list and financial statements.
(a) Investment securities are valued by the procedures described in note 1 to
the financial statements.
(b) New holding in fiscal 2003.
(c) Holding increased in fiscal 2003.
(d) Holding decreased in fiscal 2003.
(e) Non-income producing securities.
(f) Repurchase agreement which is collateralized by U.S. Government securities.
Accrued interest shown represents interest due at the maturity of the
repurchase agreement.
(g) At November 30, 2003 the cost of securities for federal income tax purposes
was $19,043,714, and the aggregate unrealized appreciation and depreciation
based on that cost was:
<Table>
Unrealized appreciation 4,179,396
Unrealized depreciation (2,119,217)
------------
$ 2,060,179
============
</Table>
<Page>
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 2003
<Table>
INVESTMENT INCOME:
Income:
Dividends $ 367,164
Interest 217
-----------
Total income 367,381
-----------
Expenses (note 2):
Investment advisory fees 119,357
Management administration fees 79,571
Shareholder notices and reports 12,877
Auditing and tax services 20,078
Custodian and portfolio accounting fees 47,450
Transfer agent, registrar and disbursing agent fees 65,978
Legal services 12,866
Directors' fees 7,434
Federal and state registration fees and expenses 12,993
Other 14,236
-----------
Total expenses 392,840
Reimbursement from Advisor (93,735)
-----------
Total net expenses 299,105
-----------
Net investment income 68,276
-----------
Realized and unrealized gains from Investments - net:
Net realized gains on securities
transactions (note 3) 344,247
Net change in unrealized appreciation
or depreciation of investments 1,763,998
-----------
Net gain on investments 2,108,245
-----------
Net increase in net assets resulting
from operations $ 2,176,521
===========
</Table>
FINANCIAL HIGHLIGHTS:
See accompanying notes to investment securities list and financial statements.
<Table>
<Caption>
YEAR ENDED NOVEMBER 30
SELECTED PER SHARE HISTORICAL DATA WERE AS FOLLOWS: 2003 2002 2001 2000 1999
--------- --------- --------- ---------- ---------
Net asset value, beginning of year $ 10.35 $ 13.36 $ 15.81 $ 16.93 $ 16.34
--------- --------- --------- ---------- ---------
Operations:
Net investment income .04 .00 .07 .09 .12
Net realized and unrealized gains (losses) on investments 1.15 (2.59) (2.41) (1.09) 3.11
--------- --------- --------- ---------- ---------
Total from operations 1.19 (2.59) (2.34) (1.00) 3.23
--------- --------- --------- ---------- ---------
Distributions to shareholders:
From investment income - net (.04) (.01) (.07) (.09) (.06)
From net realized gains (.19) (.41) (.04) (.03) (2.58)
--------- --------- --------- ---------- ---------
Total distributions to shareholders (.23) (.42) (.11) (.12) (2.64)
--------- --------- --------- ---------- ---------
Net asset value, end of year $ 11.31 $ 10.35 $ 13.36 $ 15.81 $ 16.93
========= ========= ========= ========== =========
Total return* 11.50% (19.34%) (14.86%) (5.92%) 19.85%
Net assets, end of year (000's omitted) $ 21,102 $ 20,785 $ 28,439 $ 40,290 $ 41,638
Ratio of expenses to average daily net assets** 1.50% 1.50% 1.50% 1.40% 1.49%
Ratio of net investment income (loss) to average daily net assets** .34% (.02%) .46% .42% .70%
Portfolio turnover rate 50% 68% 1% 5% 22%
</Table>
* These are the Fund's total returns during the years, including reinvestment of
all dividend and capital gain distributions without adjustments for sales
charge.
** Total Fund expenses are contractually limited to 1.50% of average daily net
assets. During the years ended November 30, 2003, 2002, and 2001,the investment
advisor waived $93,735, $78,892, and $35,964 in expenses respectively, that were
otherwise payable by the Fund. Had the Fund incurred these expenses, the ratio
of expenses to average daily net assets would have been 1.97%, 1.83%,and 1.61%,
respectively, and the ratio of net investment income to average daily net assets
would have been (.13%), .35%, and (.35%), respectively.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30,2003
AND YEAR ENDED NOVEMBER 30,2002
<Table>
<Caption>
2003 2002
-------------- --------------
OPERATIONS:
Net investment income (loss) $ 68,276 $ (3,623)
Net realized gains on investments 344,247 786,155
Net change in unrealized appreciation
or depreciation of investments 1,763,998 (6,088,861)
-------------- --------------
Net increase (decrease) in assets from
operations 2,176,521 (5,306,329)
-------------- --------------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income (73,328) (19,361)
Net realized gains on investments (348,060) (793,789)
-------------- --------------
Total distributions (421,388) (813,150)
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of 10,376 and
11,528 shares, respectively 108,359 132,940
Net asset value of 34,735 and 72,675
shares, respectively, issued in
reinvestment of net investment income
and net realized gain distributions 392,503 755,091
Payments for redemptions of 187,181
and 203,715 shares, respectively (1,938,894) (2,422,270)
-------------- --------------
Decrease in net assets
from capital share transactions,
representing net decrease
of 142,070 and 119,512 shares,
respectively (1,438,032) (1,534,239)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 317,101 (7,653,718)
NET ASSETS:
Beginning of period 20,784,948 28,438,666
-------------- --------------
End of period (including undistributed
net investment income of $ 0
and $ 0, respectively $ 21,102,049 $ 20,784,948
============== ==============
</Table>
<Page>
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 2003
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Securities, Incorporated (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified open end
management investment company. The Fund invests primarily in common stocks
of companies believed to be undervalued.
The significant accounting policies followed by the Fund are summarized as
follows:
INVESTMENTS IN SECURITIES
Securities listed of national securities exchanges are valued on the basis
of the last reported sale each day, or if no sale is made, at the mean of
the last reported bid and asked price for such securities. Short-term
securities are valued at amortized cost which approximates market value.
Security transactions are recorded on the date securities are purchased or
sold. Realized gains or losses and unrealized appreciation or depreciation
of investments are determined on the basis of identified cost. Dividend
income is recorded on the ex-dividend date. Interest is recognized on the
accrual basis.
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of increase and decrease in net assets from operations during the
period. Actual results could differ from those estimates.
FEDERAL INCOME TAXES
It is the Fund's policy to continue meeting the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute taxable income to its shareholders in amounts which will relieve
it from all, or substantially all, federal income and excise taxes.
Therefore, the Fund does not provide for federal income or excise taxes.
On the statement of net assets, as a result of permanent book-to-tax
differences, a reclassification adjustment was made to increase accumulated
net realized gain on investments by $3,813, increase undistributed net
investment income by $5,052, and decrease capital surplus by $8,865.
The Fund may elect to utilize equalization debits by which a portion of the
cost of redemptions, which occurred during the year ended November 30,
2003, would reduce required net realized gain distributions.
As of November 30,2003 there were no distributable earnings on a tax basis.
DISTRIBUTIONS
Distributions to shareholders from investment income are made quarterly and
realized capital gain distributions, if any, are made annually. These
distributions are recorded on the record date and are payable in cash or
reinvested in additional shares of the Fund's capital stock.
Due to the timing of dividend distributions, the fiscal year in which
amounts are distributed for tax purposes may differ from the year that
income or realized gains were recorded by the Fund.
Long term gain distributions for the year were $348,060 and ordinary income
distributions were $73,328.
REPURCHASE AGREEMENTS
Securities pledged as collateral for repurchase agreements are held by the
fund's custodian bank until maturity of the repurchase agreement.
Procedures for all agreements ensure that the daily market and value of the
collateral is in excess of the repurchase agreement in the event of
default.
(2) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Robinson Capital Management, Inc. is the Fund's investment advisor
<Page>
and administrator. As compensation for its services under the Investment
Advisory Agreement, Robinson Capital is paid an investment management
advisory fee, payable monthly, at an annual rate of 0.60% for average net
assets up to and including $100 million, 0.35% for next $150 million of
average net assets and 0.10% for net assets over $250 million. Robinson
Capital is obligated to pay all Fund expenses (exclusive of brokerage
expenses and fees, interest and any federal or state income taxes) which
exceed 1.50% of the Fund's average net assets for any fiscal year on the
first $100 million of average net assets, 1.25% of the Fund's average net
assets for any fiscal year on the next $150 million of average net assets,
and 1% of the Fund's average net assets for any fiscal year on average net
assets in excess of $250 million. For managing the business affairs and
providing certain shareholder services pursuant to the Management
Agreement, the Fund pays Robinson Capital an administrative fee, payable
monthly, at an annual rate of 0.40% of the average daily assets of the
Fund, plus out-of-pocket expenses incurred. Robinson Capital may
subcontract with other entities to provide certain shareholder servicing
activities.
Legal service fees were paid to a law firm in which the secretary of the
Fund is a partner.
(3) SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $9,806,902 and $10,967,741,
respectively, for the year ended November 30, 2003.
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
General Securities, Incorporated:
We have audited the accompanying statement of net assets of General
Securities, Incorporated as of November 30, 2003, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period ended November 30, 2003, and the
financial highlights for each of the years in the five-year period ended
November 30, 2003. These financial statements and the financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of November 30, 2003, by correspondence with the custodian
or by other appropriate auditing procedures. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights
referred to above present fairly, in all material respects, the financial
position of General Securities, Incorporated at November 30, 2003 and the
results of its operations for the year then ended, the changes in its net assets
for each of the years in the two-year period ended November 30, 2003, and the
financial highlights for each of the years in the five-year period ended
November 30, 2003, in conformity with accounting principles generally accepted
in the United States of America.
Minneapolis, Minnesota
December 19, 2003 KPMG LLP
<Page>
DIRECTORS AND EXECUTIVE OFFICERS
Under Minnesota law, the Board of Directors of General Securities, Inc. have
overall responsibility for managing the Fund in good faith and in a manner
reasonably believed to be in the best interest of the Fund. The directors meet
periodically throughout the year to oversee the Fund's activities, review
contractual arrangements with companies that provide services to the Fund, and
review the performance of the Fund.
The individuals listed in the table below serve as directors and officers of
General Securities, Inc. Only executive officers and other officers who perform
policy-making functions with the Fund are listed. Each director serves for a
indefinite term, until his or her resignation, death or removal.
INDEPENDENT DIRECTORS
<Table>
M. MICHELLE COADY, Ph.D.
Age: 45 Chairperson Assistant Vice President Operations Technology
of the Board of the St. Paul Companies, a St. Paul, Minnesota
of Directors based property and casualty insurer, since
Since 1996 1995; Proprietor of a consulting business since
1985.
GARY D. FLOSS
Age: 62 Director Since Business Partner and Senior Consultant of
1998 Bluefire Partners, Inc., a Minneapolis,
Minnesota consulting firm, since 2002;
Director of Customer Focused Quality for
Medtronic Corporation, a Minneapolis,
Minnesota manufacturer of medical devices,
from 1998 to 2002.
DAVID W. PREUS
Age: 81 Director Since He is the Presiding Bishop Emeritus of the
Since 1985 American Lutheran Church and a Distinguished
Visiting Professor at Luther Northwestern
Theological Seminary, St. Paul, Minnesota.
CHARLES J. WALTON
Age: 80 Director Since He is Director of Walton Enterprise Leasing
1975 Co., a Minneapolis, Minnesota automobile, truck
and equipment leasing corporation.
ARNOLD M. WEIMERSKIRCH
Age: 67 Director Since Retired; 3M Chair of the University of St.
1998 Thomas since 2000; Former Vice President of
Corporate Quality for Honeywell, Inc., a
Minneapolis, Minnesota manufacturer of
temperature control systems and avionics,
from 1960 to 1999.
</Table>
You can obtain a free copy of the proxy voting policies and procedures that the
Fund uses to determine how to vote proxies relating to Fund investments by
calling 1-800-577-9217. The proxy voting policies and procedures will also be
available on the EDGAR Database on the SEC's Internet Site at
http://www.sec.gov.
<Page>
OTHER EXECUTIVE OFFICERS
<Table>
CRAIG H. ROBINSON
Age: 46 Director*, President, Director and Associate Portfolio
President, and Manager of the Fund since September 1998. He
Associate has worked in sales and marketing at Robinson
Portfolio Capital Management, Inc. since August 1995. He
Manager also served as Vice President of the Fund from
Since 1998 February 1997 through September 1998. He has
been President and Chief Executive Officer
of Robinson Capital Management, Inc. since
September 1998 and was a Vice President
from February 1997 through September 1998.
From August 1994 to August 1995, he worked
as an Account Executive at Paine Webber
Incorporated. From 1990 to August 1994, he
worked as a Sales Manager at Comprehensive
Loss Management, Inc.
MARK D. BILLEADEAU
Age: 47 Director*, Vice President of the Fund and Senior Portfolio
Vice President Manager since September 1998. He has been
and Senior Treasurer and Chief Financial Officer of
Portfolio Robinson Capital Management since September
Manager 1998, and has served as a Financial Analyst at
Since 1994 Robinson Capital Management since February
1995. From September 1990 to February 1995
he was a Manager of Consulting Service of
Craig-Hallum and its successor, Principal
Financial Services, Inc.
JOHN R. HOUSTON
Age: 51 Secretary He is a partner of Robins, Kaplan, Miller &
Since 1998 Ciresi, L.L.P., legal counsel for the Fund.
</Table>
*Designates a director who is an interested person with respect to the Fund as
defined in the Investment Company Act of 1940. Mr. Billeadeau and Mr. Robinson
are interested persons as defined in the Investment Company Act of 1940 by
reason of their status as shareholders, officers and directors of Robinson
Capital, the Fund's Investment Advisor and Administrator.
<Page>
G E N E R A L S E C U R I T I E S
INCORPORATED
PRESIDENT Craig H. Robinson
VICE PRESIDENT Mark D. Billeadeau
SECRETARY John R. Houston
TREASURER Renee A. Rasmusson
DIRECTORS M. Michelle Coady,
Chair
Gary D. Floss
David W. Preus
Charles Walton
Arnold M. Weimerskirch
INVESTMENT MANAGER Robinson Capital
Management, Inc.
CUSTODIAN, REGISTRAR State Street Corporation
AND TRANSFER AGENT
GENERAL COUNSEL Robins, Kaplan, Miller &
Ciresi L.L.P.
INDEPENDENT AUDITORS KPMG LLP
This report has been prepared primarily for the benefit of existing
stockholders of the company and is not intended as an offer to sell the
company's shares. When used otherwise, it must be accompanied or preceded by
the current prospectus.
FOR FURTHER
INFORMATION ABOUT
GENERAL SECURITIES
INCORPORATED
CONTACT:
ROBINSON CAPITAL MANAGEMENT, INC.
5100 EDEN AVENUE, SUITE 204
EDINA, MINNESOTA 55436
(952) 927-6799
800-577-9217
<Page>
GENERAL SECURITIES
INCORPORATED
ROBINSON CAPITAL MANAGEMENT, INC.
5100 EDEN AVENUE, SUITE 204
EDINA, MINNESOTA 55436
(952) 927-6799
800-577-9217
<Page>
ITEM 2. CODE OF ETHICS.
As of the end of the period covered in this report, the Registrant had
not adopted a code of ethics that applied to the Registrant's principal
executive officer, principal financial officer, comptroller or principal
accounting officer, or persons performing similar functions. The Registrant was
initially of the view that its existing internal procedures adequately addressed
the issues that such a code would otherwise cover given the Registrant's size,
and the limited number of personnel conducting the Registrant's business.
However, the Registrant has subsequently adopted a code of ethics that applies
to Registrant's principal executive officer, principal financial officer,
comptroller or principal accounting officer, or persons performing similar
functions which is filed as an exhibit to this report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The board of directors has determined that none of the members of
the Registrant's audit committee meets the definition of "audit committee
financial expert" as the term has been defined by the U.S. Securities and
Exchange Commission (the "Commission"). The board of directors considered the
possibility of adding a member that would qualify as an audit committee
financial expert, but has determined that the Committee currently has
sufficient expertise to perform its duties and responsibilities.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
ITEM 6. [RESERVED].
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable
ITEM 10. CONTROLS AND PROCEDURES.
(a) The Registrant's President and Treasurer have evaluated the
Registrant's disclosure controls and procedures within 90 days
of this filing and have concluded that the Registrant's
disclosure controls and procedures were effective, as of that
date, in ensuring that information required to be disclosed by
the Registrant in this form N-CSR was recorded, processed,
summarized, and reported timely.
<Page>
(b) There were no significant changes in the Registrant's internal
controls or other factors that could significantly affect these
controls subsequent to the date of their evaluation, including
any corrective actions with regard to significant deficiencies
and material weaknesses.
ITEM 11. EXHIBITS.
(a)(1) Any code of ethics, or amendment thereto, that is the
subject of the disclosure required by Item 2, to the extent that
the registrant intends to satisfy the Item 2 requirements
through filing of an exhibit. Filed herewith.
(a)(2) A separate certification for each principal executive and
principal financial officer of the registrant as required by
Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)). Filed
herewith.
(a)(3) Any written solicitation to purchase securities under Rule
23c-1 under the Act (17 CFR 270.23c-1) sent or given during the
period covered by the report or on behalf of the registrant to
10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the
Exchange Act, provide the certifications required by Rule
30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or
Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or
240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the
United States Code (18 U.S.C. 1350) as an exhibit. A
certification furnished pursuant to this paragraph will not be
deemed "filed" for the purposes of Section 18 of the Exchange
Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be
incorporated by reference into any filing under the Securities
Act of 1933 or the Exchange Act, except to the extent that the
registrant specifically incorporates it by reference. Filed
herewith.
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 SECURITIES, INCORPORATED
By /s/ Craig H. Robinson
-----------------
Craig H. Robinson, President
Date February 9, 2004
-------------------------------
<Page>
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/ Craig H. Robinson
-----------------------------------
Craig H. Robinson, President
Date February 9, 2004
-------------------------------
By /s/ Renee A. Rasmusson
-----------------------------------
Renee A. Rasmusson, Treasurer
Date February 9, 2004
-------------------------------