0000762156-11-000006.txt : 20110629 0000762156-11-000006.hdr.sgml : 20110629 20110629161107 ACCESSION NUMBER: 0000762156-11-000006 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20110430 FILED AS OF DATE: 20110629 DATE AS OF CHANGE: 20110629 EFFECTIVENESS DATE: 20110629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS PREMIER GNMA FUND, INC CENTRAL INDEX KEY: 0000762156 IRS NUMBER: 133281750 STATE OF INCORPORATION: NY FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-04215 FILM NUMBER: 11939091 BUSINESS ADDRESS: STREET 1: 200 PARK AVE STREET 2: THE DREYFUS CORPORATION CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2129226850 MAIL ADDRESS: STREET 1: THE DREYFUS CORPORATION STREET 2: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: DREYFUS PREMIER GNMA FUND INC DATE OF NAME CHANGE: 20070508 FORMER COMPANY: FORMER CONFORMED NAME: DREYFUS GNMA FUND INC DATE OF NAME CHANGE: 19920703 0000762156 S000000069 DREYFUS GNMA FUND C000000106 Class Z DRGMX C000041113 Class A GPGAX C000041114 Class B GPGBX C000041115 Class C GPNCX N-CSR 1 formncsr-265.htm ANNUAL REPORT formncsr-265.htm - Generated by SEC Publisher for SEC Filing

 

  

 

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- 4215

 

 

 

Dreyfus Premier GNMA Fund, Inc.

- Dreyfus GNMA Fund

 

 

(Exact name of Registrant as specified in charter)

 

 

 

 

 

 

c/o The Dreyfus Corporation

200 Park Avenue

New York, New York  10166

 

 

(Address of principal executive offices)        (Zip code)

 

 

 

 

 

Michael A. Rosenberg, Esq.

200 Park Avenue

New York, New York  10166

 

 

(Name and address of agent for service)

 

 

Registrant's telephone number, including area code: 

(212) 922-6000

 

 

Date of fiscal year end:

 

4/30

 

Date of reporting period:

4/30/2011

 

             

 

 


 

 

FORM N-CSR

Item 1.                        Reports to Stockholders.

 


 

Dreyfus 
GNMA Fund 

 

ANNUAL REPORT April 30, 2011



 

Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.

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     

A Letter from the Chairman and CEO

3     

Discussion of Fund Performance

6     

Fund Performance

8     

Understanding Your Fund’s Expenses

8     

Comparing Your Fund’s Expenses With Those of Other Funds

9     

Statement of Investments

12     

Statement of Financial Futures

12     

Statement of Options Written

13     

Statement of Assets and Liabilities

14     

Statement of Operations

15     

Statement of Changes in Net Assets

17     

Financial Highlights

21     

Notes to Financial Statements

34     

Report of Independent Registered Public Accounting Firm

35     

Important Tax Information

36     

Information About the Renewal of the Fund’s Management Agreement

41     

Board Members Information

44     

Officers of the Fund

 

FOR MORE INFORMATION

 

Back Cover


 

Dreyfus 
GNMA Fund 

 

The Fund


A LETTER FROM THE CHAIRMAN AND CEO

Dear Shareholder:

We are pleased to present this annual report for Dreyfus GNMA Fund, covering the 12-month period from May 1, 2010, through April 30, 2011.

Multiple crosscurrents have influenced the global economy.A modest slowdown earlier in 2010 gave way to renewed strength during the reporting period. The recovery has been fueled by three important characteristics. First, macroeconomic policy has been stimulative in most of the developed world. Second, in response to inflation worries emerging countries have shifted policy from aggressively stimulative to neutral, but not restrictive, supporting ongoing demand for commodi-ties.Third, corporate balance sheets have strengthened due to cheap bond financing, rising profits and relatively slow growth in corporate spending. Although shocks emanating from events in the Middle East and Japan threatened the recovery, U.S. government securities generally weakened as investors looked forward to higher interest rates and sought opportunities in other areas of the financial markets, including higher-yielding fixed income securities.

We expect the global economy to continue to expand at a moderate rate. While our outlook suggests that lower-yielding sovereign bonds within many of the developed markets may remain out of favor among investors, we have continued to identify attractive opportunities among corporate-backed debt securities. As always, your financial advisor can help you align your investment portfolio with the opportunities and challenges that the future may have in store.

For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Thank you for your continued confidence and support.


Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation
May 16, 2011

2


 


DISCUSSION OF FUND PERFORMANCE

For the period of May 1, 2010, through April 30, 2011, as provided by Robert Bayston, Portfolio Manager

Fund and Market Performance Overview

For the 12-month period ended April 30, 2011, Dreyfus GNMA Fund’s Class A shares produced a total return of 5.43%, Class B shares returned 4.79%, Class C shares returned 4.68% and Class Z shares returned 5.58%.1 In comparison, the fund’s benchmark, the Barclays Capital GNMA Index (the “Index”), achieved a total return of 5.93% for the same period.2

Mortgage-backed securities fared relatively well during the reporting period even as U.S.Treasury securities lost value amid rising longer-term interest rates. Mortgage prepayments were constrained by tighter lending standards and weak real estate markets, helping to preserve the value of higher coupon mortgage pools.The fund produced lower returns than its benchmark, partly due to a slightly long average duration toward the end of 2010.

The Fund’s Investment Approach

The fund seeks to maximize total return, consisting of capital appreciation and current income.To pursue this goal, the fund invests at least 80% of its assets in Government National Mortgage Association (“GNMA” or “Ginnie Mae”) securities. The remainder may be allocated to other mortgage-related securities, including U.S. government agency securities and privately issued mortgage-backed securities, as well as to asset-backed securities, U.S.Treasuries and repurchase agreements.

Slow Prepayments Supported Mortgage-Backed Sector

Although the U.S. economy continued to recover from recession in the spring of 2010, a sovereign debt crisis in Europe threatened to spread from Greece to other members of the European Union, and China faced intensifying inflationary pressures, causing global investors to flock toward traditional safe havens over the spring and summer.As a result, investors concluded that short-term interest rates were unlikely to rise anytime

The Fund  3 

 


 

DISCUSSION OF FUND PERFORMANCE (continued)

soon, and robust investor demand for government-backed investments supported a rally among U.S.Treasuries and GNMA securities.

Investor sentiment changed sharply in the fall, when the Federal Reserve Board announced a new round of quantitative easing of monetary policy, convincing investors that a return to recession was unlikely. A more optimistic economic outlook was further supported by better-than-expected employment data and stimulative tax legislation enacted by Congress near year-end. Consequently, yields of U.S. Treasury securities climbed sharply—and prices fell—in November and December.

Mortgage-backed securities also benefited from tighter bank lending standards and lower home prices, which prevented many homeowners from refinancing their mortgages at lower interest rates.Typically, when mortgage rates fall, more homeowners seek to refinance, returning principal early to bondholders and reducing future income payments. Although mortgage rates fell toward record lows at times during the reporting period, bondholders benefited when prepayment activity failed to intensify significantly. Therefore, GNMA securities outperformed U.S.Treasury securities during the reporting period.

Opportunistic Strategies Positioned Fund for Higher Returns

In this favorable market environment, we maintained strategies to minimize the fund’s overall exposure to mortgage pools that, in our view, were more vulnerable to heightened mortgage prepayment activity as interest rates declined. For example, we continued to hold higher coupon GNMA mortgages that were “underwater”—with loan values that exceed the home’s market value—and were therefore unlikely to qualify for refinancing at lower rates.Although we recognize that such loans normally may be more prone to default, we believed that higher default rates were unlikely in a recovering economy. We also emphasized mortgage pools in which the underlying loans have lower loan balances, giving homeowners little incentive to refinance.The fund’s relative performance also benefited from small positions in commercial mortgage-backed securities, asset-backed securities and home equity loans.

We tactically adjusted the fund’s average duration as interest rates fluctuated. However, a longer-than-average duration position in November

4


 

and December detracted from relative performance, offsetting the success of our duration management strategy at other times during the reporting period.

We successfully employed futures contracts to help set the fund’s average duration and swap options to help manage volatility. The fund also benefited from the sale of call options during the reporting period.

Focusing on Income and Muted Volatility

We expect the economic recovery to persist and interest rates to rise as the economy moves to the next phase of its cycle. We recently have made adjustments to position the fund for this environment, including selling bonds likely to be redeemed early by their issuers.We generally have replaced those positions with mortgage pools providing better call protection. Otherwise, we have maintained the fund’s emphasis on higher coupon, GNMA-backed mortgage-backed securities that, in our analysis, are unlikely to see elevated levels of refinancing activity.

May 16, 2011

  Bond funds are subject generally to interest rate, credit, liquidity and market risks, to varying 
  degrees, all of which are more fully described in the fund’s prospectus. Generally, all other factors 
  being equal, bond prices are inversely related to interest-rate changes, and rate increases can cause 
  price declines. 
  The fund may use derivative instruments, such as options, futures and options on futures, forward 
  contracts, swaps (including credit default swaps on corporate bonds and asset-backed securities), 
  options on swaps and other credit derivatives.A small investment in derivatives could have a 
  potentially large impact on the fund’s performance.The use of derivatives involves risks different 
  from, or possibly greater than, the risks associated with investing directly in the underlying assets. 
1  Total return includes reinvestment of dividends and any capital gains paid, and does not take into 
  consideration the maximum initial sales charge in the case of Class A shares, or the applicable 
  contingent deferred sales charges imposed on redemptions in the case of Class B and Class C 
  shares. Had these charges been reflected, returns would have been lower. Class Z is not subject to 
  any initial or deferred sales charge. Past performance is no guarantee of future results. Share price, 
  yield and investment return fluctuate such that upon redemption, fund shares may be worth more 
  or less than their original cost. Return figures for Class A, B, and C shares reflect the absorption 
  of certain fund expenses by The Dreyfus Corporation pursuant to an agreement in effect through 
  November 30, 2010, at which time it was terminated. Had these expenses not been absorbed, the 
  returns for Class A, B and C shares would have been lower. 
2  SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital 
  gain distributions.The Barclays Capital GNMA Index is an unmanaged, total return 
  performance benchmark for the GNMA market consisting of 15- and 30-year fixed-rate securities 
  backed by mortgage pools of the Government National Mortgage Association. Index returns do 
  not reflect fees and expenses associated with operating a mutual fund. Investors cannot invest 
  directly in any index. 

 

The Fund  5 

 


 

FUND PERFORMANCE


Comparison of change in value of $10,000 investment in Dreyfus GNMA Fund Class Z shares and the Barclays Capital GNMA Index

† Source: Lipper Inc. 
Past performance is not predictive of future performance. 
The above graph compares a $10,000 investment made in Class Z shares of Dreyfus GNMA Fund on 4/30/01 to a 
$10,000 investment made in the Barclays Capital GNMA Index (the “Index”) on that date.All dividends and capital 
gain distributions are reinvested. 
The fund invests primarily in Ginnie Maes and its performance shown in the line graph takes into account all applicable 
fees and expenses for Class Z shares. Performance for Class A, Class B and Class C shares will vary from the 
performance of Class Z shares shown above due to differences in charges and expenses. Unlike the fund, the Index is an 
unmanaged total return performance benchmark for the GNMA market, consisting of 15- and 30-year fixed-rate 
GNMA securities.All issues have at least one year to maturity and an outstanding par value of at least $100 million. 
These factors can contribute to the Index potentially outperforming or underperforming the fund. Unlike a mutual fund, 
the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further 
information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial 
Highlights section of the prospectus and elsewhere in this report. 

 

6


 

Average Annual Total Returns as of 4/30/11       
 
Inception
  Date  1Year  5 Years  10 Years 
Class A shares         
with maximum sales charge (4.5%)  5/3/07  0.68%  4.85%†††  4.55%††† 
without sales charge  5/3/07  5.43%  5.82%†††  5.03%††† 
Class B shares         
with applicable redemption charge   5/3/07  0.79%  4.95%†††  5.03%†††,†††† 
without redemption  5/3/07  4.79%  5.28%†††  5.03%†††,†††† 
Class C shares         
with applicable redemption charge ††  5/3/07  3.68%  5.21%†††  4.73%††† 
without redemption  5/3/07  4.68%  5.21%†††  4.73%††† 
Class Z shares  5/29/85  5.58%  5.97%  5.10% 
Barclays Capital GNMA Index    5.93%  6.79%  5.76% 

 

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

  The maximum contingent deferred sales charge for Class B shares is 4%.After six years Class B shares convert to 
  Class A shares. 
††  The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of 
  the date of purchase. 
†††  The total return performance figures presented for Class A, B and C shares of the fund reflect the performance of 
  the fund’s Class Z shares for periods prior to 5/3/07 (the inception date for Class A, B and C shares), adjusted 
  to reflect the applicable sales load for each share class. 
††††  Assumes the conversion of Class B shares to Class A shares at the end of the sixth year following the 
  date of purchase. 

 

The Fund  7 

 


 

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus GNMA Fund from November 1, 2010 to April 30, 2011. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended April 30, 2011

    Class A    Class B    Class C    Class Z 
Expenses paid per $1,000  $ 4.97  $ 8.54  $ 8.54  $ 4.28 
Ending value (after expenses)  $ 1,005.80  $ 1,002.10  $ 1,002.50  $ 1,006.70 

 

COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment
assuming a hypothetical 5% annualized return for the six months ended April 30, 2011

    Class A    Class B    Class C    Class Z 
Expenses paid per $1,000  $ 5.01  $ 8.60  $ 8.60  $ 4.31 
Ending value (after expenses)  $ 1,019.84  $ 1,016.27  $ 1,016.27  $ 1,020.53 

 

† Expenses are equal to the fund’s annualized expense ratio of 1.00% for Class A, 1.72% for Class B, 1.72% for 
Class C and .86% for Class Z, multiplied by the average account value over the period, multiplied by 181/365 (to 
reflect the one-half year period). 

 

8


 

STATEMENT OF INVESTMENTS 
April 30, 2011 

 

    Coupon  Maturity  Principal       
  Bonds and Notes—100.2%  Rate (%)  Date  Amount ($)      Value ($) 
  Asset-Backed Ctfs./             
  Home Equity Loans—.1%             
  Countrywide Asset-Backed             
  Certificates, Ser. 2007-4, Cl. M5  6.92  9/25/37  875,000   108,047 
  Equivantage Home Equity Loan             
  Trust, Ser. 1997-1, Cl. A4  7.78  3/25/28  204,028 a 198,969 
  GE Capital Mortgage Services,             
  Ser. 1999-HE1, Cl. A7  6.27  4/25/29  226,200   221,697 
              528,713 
  Commercial Mortgage             
Pass-Through Ctfs.—.3%             
  GS Mortgage Securities Corporation             
  II, Ser. 2007-EOP, Cl. F  2.84  3/6/20  2,275,000 a,b 2,237,552 
  Residential Mortgage             
Pass-Through Ctfs.—.1%             
  GSR Mortgage Loan Trust,             
  Ser. 2004-12, Cl. 2A2  3.18  12/25/34  1,099,486 a 907,797 
  U.S. Government Agencies/             
  Mortgage-Backed—99.3%             
  Federal Home Loan Mortgage Corp.:             
  4.00%      21,640,000 c,d  21,508,126 
  4.00%, 12/1/40      7,814,789 d  7,777,358 
  5.00%, 3/1/20      373,707 d  402,265 
  Federal National Mortgage Association:             
  5.00%      4,215,000 c,d  4,449,459 
  5.00%, 5/1/39      1,371,215 d  1,455,114 
  5.50%, 11/1/38—9/1/39      5,798,076 d  6,264,444 
  6.00%, 4/1/35      2,462,298 d  2,706,630 
  Gtd. Pass-Through Ctfs., Ser. 2003-49,             
  Cl. JE, 3.00%, 4/25/33      576,860 d  591,713 
Pass-Through Ctfs., Ser. 2004-58,             
  Cl. LJ, 5.00%, 7/25/34      2,118,111 d  2,193,804 
  Government National Mortgage Association I:           
  4.00%      46,210,000 c  46,823,715 
  5.00%      53,405,000 c  57,210,106 
  5.50%      9,775,000 c  10,641,006 
  6.00%      11,705,000 c  12,928,547 
  6.50%      18,805,000 c  21,223,210 
  4.00%, 9/15/24—1/15/41      5,159,436   5,254,203 
  4.50%, 10/15/24—10/15/40      67,841,357   71,411,108 

 

The Fund  9 

 


 

STATEMENT OF INVESTMENTS (continued)

  Principal   
Bonds and Notes (continued)  Amount ($)  Value ($) 
U.S. Government Agencies/     
Mortgage-Backed (continued)     
Government National Mortgage Association I (continued):     
5.00%, 10/15/23—3/15/41  51,297,513  55,252,515 
5.50%, 6/15/20—9/15/39  81,516,025  89,635,168 
6.00%, 10/15/19—9/15/39  34,997,563  38,881,528 
6.50%, 6/15/11—2/15/39  2,446,126  2,760,632 
7.00%, 11/15/22—12/15/22  10,208  11,749 
7.50%, 2/15/17—5/15/26  3,727,747  4,326,326 
8.00%, 8/15/21—12/15/22  1,631,294  1,898,423 
8.50%, 12/15/16—12/15/22  1,243,799  1,423,736 
9.00%, 9/15/19—12/15/22  1,215,451  1,424,467 
9.50%, 3/15/18—1/15/25  296,004  343,805 
Government National Mortgage Association II:     
4.50%  76,305,000c  79,615,812 
5.00%  72,930,000c  78,069,304 
4.00%, 12/24/24  5,744,005  6,062,649 
4.50%, 12/20/39—3/20/41  11,494,532  12,023,975 
5.00%, 9/20/33—4/20/35  10,293,175  11,102,197 
5.50%, 1/20/34—9/20/35  26,412,471  28,842,645 
6.00%, 12/20/28—2/20/36  11,884,070  13,123,636 
6.50%, 5/20/31—7/20/31  1,149,500  1,297,075 
7.00%, 4/20/24—4/20/32  6,075,954  7,018,617 
7.50%, 9/20/30  87,299  101,481 
9.00%, 7/20/25  69,883  83,347 
9.50%, 9/20/17—2/20/25  65,990  76,968 
    706,216,863 
U.S. Treasury Notes—.4%     
2.63%, 8/15/20  3,000,000  2,853,048 
Total Bonds and Notes     
(cost $688,258,898)    712,743,973 

 

  Face Amount    
  Covered by    
Options Purchased—0%  Contracts ($)   Value ($) 
Put Options       
U.S. Treasury 5-Year Notes,       
May 2011@ $118       
(cost $118,290)  375,000 e  93,750 

 

10


 

    Principal   
Short-Term Investments—44.9%  Amount ($)  Value ($) 
  U.S. Treasury Bills:     
  0.03%, 5/12/11  120,000,000  119,999,880 
  0.03%, 5/19/11  198,000,000  197,999,406 
  0.12%, 6/9/11  1,435,000f  1,434,977 
  Total Short-Term Investments     
  (cost $319,430,966)    319,434,263 
 
  Other Investment—1.6%  Shares  Value ($) 
  Registered Investment Company;     
  Dreyfus Institutional Preferred     
  Plus Money Market Fund     
  (cost $11,293,000)  11,293,000g  11,293,000 
 
  Total Investments (cost $1,019,101,154)  146.7%  1,043,564,986 
  Liabilities, Less Cash and Receivables  (46.7%)  (332,335,424) 
  Net Assets  100.0%  711,229,562 

 

a Variable rate security—interest rate subject to periodic change. 
b Securities exempt from registration under Rule 144A of the Securities Act of 1933.This security may be resold in 
transactions exempt from registration, normally to qualified institutional buyers.At April 30, 2011, this security was 
valued at $2,237,552 or .3% of net assets. 
c Purchased on a forward commitment basis. 
d The Federal Housing Finance Agency (“FHFA”) placed Federal Home Loan Mortgage Corporation and Federal 
National Mortgage Association into conservatorship with FHFA as the conservator.As such, the FHFA oversees the 
continuing affairs of these companies. 
e Non-income producing security. 
f Held by a broker as collateral for open financial futures positions. 
g Investment in affiliated money market mutual fund. 

 

Portfolio Summary (Unaudited)     
 
  Value (%)    Value (%) 
U.S. Government & Agencies  99.7  Asset/Mortgage-Backed  .5 
Short-Term/    Options Purchased  .0 
Money Market Investments  46.5    146.7 
 
† Based on net assets.       
See notes to financial statements.       

 

The Fund  11 

 


 

STATEMENT OF FINANCIAL FUTURES 
April 30, 2011 

 

          Unrealized 
    Market Value     Appreciation 
    Covered by     (Depreciation) 
Contracts  Contracts ($)   Expiration  at 4/30/2011($) 
Financial Futures Long           
U.S. Treasury 10 Year Notes  390  47,244,844   June 2011  879,821 
Financial Futures Short           
U.S. Treasury 5 Year Notes  167  (19,784,281 )  June 2011  (14,352) 
Gross Unrealized Appreciation          879,821 
Gross Unrealized Depreciation          (14,352) 
 
See notes to financial statements.           

 

STATEMENT OF OPTIONS WRITTEN 
April 30, 2011 

 

  Face Amount    
  Covered by    
  Contracts ($)   Value ($) 
Call Options:       
U.S. Treasury 5 Year Notes,       
May 2011 @ $119  375,000 a  (79,103) 
Put Options:       
U.S. Treasury 5 Year Notes,       
May 2011 @ $117.5  375,000 a  (49,803) 
(premiums received $120,842)      (128,906) 

 

a Non-income producing security. 
See notes to financial statements. 

 

12


 

STATEMENT OF ASSETS AND LIABILITIES 
April 30, 2011 

 

      Cost  Value 
Assets ($):         
Investments in securities—See Statement of Investments:     
Unaffiliated issuers      1,007,808,154  1,032,271,986 
Affiliated issuers      11,293,000  11,293,000 
Dividends and interest receivable        2,242,765 
Receivable for investment securities sold      120,842 
Receivable for futures variation margin—Note 4      60,328 
Receivable for shares of Common Stock subscribed      45,574 
Prepaid expenses        31,263 
        1,046,065,758 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(c)      559,453 
Cash overdraft due to Custodian        43,422 
Payable for open mortgage—backed dollar rolls—Note 4      304,325,665 
Payable for investment securities purchased      29,332,580 
Payable for shares of Common Stock redeemed      283,112 
Outstanding options written, at value (premiums received     
$120,842)—See Statement of Options Written—Note 4      128,906 
Accrued expenses        163,058 
        334,836,196 
Net Assets ($)        711,229,562 
Composition of Net Assets ($):         
Paid-in capital        691,770,670 
Accumulated undistributed investment income—net      703,203 
Accumulated net realized gain (loss) on investments      (6,565,548) 
Accumulated net unrealized appreciation (depreciation) on     
investments and options transactions (including $865,469     
net unrealized appreciation on financial futures)      25,321,237 
Net Assets ($)        711,229,562 
 
 
Net Asset Value Per Share         
  Class A  Class B  Class C  Class Z 
Net Assets ($)  76,909,737  990,107  20,061,801  613,267,917 
Shares Outstanding  4,907,799  63,313  1,280,665  39,117,503 
Net Asset Value Per Share ($)  15.67  15.64  15.67  15.68 
 
See notes to financial statements.         

 

The Fund  13 

 


 

STATEMENT OF OPERATIONS 
Year Ended April 30, 2011 

 

Investment Income ($):   
Income:   
  Interest  23,084,093 
  Dividends;   
  Affiliated issuers  24,164 
Income from securities lending—Note 1(b)  95 
Total Income  23,108,352 
Expenses:   
Management fee—Note 3(a)  4,499,608 
Shareholder servicing costs—Note 3(c)  947,770 
Service plan and prospectus fees—Note 3(b)  813,105 
Distribution fees—Note 3(b)  195,943 
Custodian fees—Note 3(c)  123,812 
Professional fees  74,219 
Directors’ fees and expenses—Note 3(d)  68,255 
Registration fees  58,806 
Shareholders’ reports  16,978 
Loan commitment fees—Note 2  11,223 
Miscellaneous  89,316 
Total Expenses  6,899,035 
Less—reduction in expenses due to undertaking—Note 3(a)  (51,909) 
Less—reduction in fees due to earnings credits—Note 3(c)  (3,344) 
Net Expenses  6,843,782 
Investment Income—Net  16,264,570 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):   
Net realized gain (loss) on investments  18,367,867 
Net realized gain (loss) on options transactions  437,338 
Net realized gain (loss) on financial futures  (1,413,056) 
Net Realized Gain (Loss)  17,392,149 
Net unrealized appreciation (depreciation) on investments  6,677,559 
Net unrealized appreciation (depreciation) on options transactions  (791,843) 
Net unrealized appreciation (depreciation) on financial futures  865,469 
Net Unrealized Appreciation (Depreciation)  6,751,185 
Net Realized and Unrealized Gain (Loss) on Investments  24,143,334 
Net Increase in Net Assets Resulting from Operations  40,407,904 
 
See notes to financial statements.   

 

14


 

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended April 30, 
  2011  2010 
Operations ($):     
Investment income—net  16,264,570  22,081,565 
Net realized gain (loss) on investments  17,392,149  12,790,229 
Net unrealized appreciation     
(depreciation) on investments  6,751,185  9,705,635 
Net Increase (Decrease) in Net Assets     
Resulting from Operations  40,407,904  44,577,429 
Dividends to Shareholders from ($):     
Investment income—net:     
Class A Shares  (2,226,289)  (2,782,374) 
Class B Shares  (34,750)  (108,329) 
Class C Shares  (443,667)  (624,289) 
Class Z Shares  (16,860,235)  (21,926,591) 
Total Dividends  (19,564,941)  (25,441,583) 
Capital Stock Transactions ($):     
Net proceeds from shares sold:     
Class A Shares  23,320,033  43,931,849 
Class B Shares  174,914  395,600 
Class C Shares  4,244,673  10,794,209 
Class Z Shares  19,179,154  23,380,390 
Dividends reinvested:     
Class A Shares  1,673,460  2,072,731 
Class B Shares  32,532  93,190 
Class C Shares  278,470  397,397 
Class Z Shares  14,235,721  18,461,298 
Cost of shares redeemed:     
Class A Shares  (40,733,610)  (33,767,490) 
Class B Shares  (1,612,195)  (4,139,237) 
Class C Shares  (11,692,068)  (6,157,392) 
Class Z Shares  (76,131,135)  (60,753,912) 
Increase (Decrease) in Net Assets     
from Capital Stock Transactions  (67,030,051)  (5,291,367) 
Total Increase (Decrease) in Net Assets  (46,187,088)  13,844,479 
Net Assets ($):     
Beginning of Period  757,416,650  743,572,171 
End of Period  711,229,562  757,416,650 
Undistributed investment income—net  703,203  2,169,635 

 

The Fund  15 

 


 

STATEMENT OF CHANGES IN NET ASSETS (continued)

    Year Ended April 30, 
  2011  2010 
Capital Share Transactions:     
Class Aa     
Shares sold  1,501,536  2,932,305 
Shares issued for dividends reinvested  107,928  138,375 
Shares redeemed  (2,616,792)  (2,247,411) 
Net Increase (Decrease) in Shares Outstanding  (1,007,328)  823,269 
Class Ba     
Shares sold  11,291  26,376 
Shares issued for dividends reinvested  2,104  6,241 
Shares redeemed  (104,036)  (276,909) 
Net Increase (Decrease) in Shares Outstanding  (90,641)  (244,292) 
Class C     
Shares sold  273,006  720,887 
Shares issued for dividends reinvested  17,964  26,527 
Shares redeemed  (755,176)  (408,815) 
Net Increase (Decrease) in Shares Outstanding  (464,206)  338,599 
Class Z     
Shares sold  1,233,849  1,560,000 
Shares issued for dividends reinvested  917,841  1,232,598 
Shares redeemed  (4,899,025)  (4,046,584) 
Net Increase (Decrease) in Shares Outstanding  (2,747,335)  (1,253,986) 

 

a During the period ended April 30, 2011, 42,521 Class B shares representing $656,838 were automatically 
converted to 42,450 Class A shares and during the period ended April 30, 2010, 120,901 Class B shares 
representing $1,805,596 were automatically converted to 120,865 Class A shares. 

 

See notes to financial statements.

16


 

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated.All information (except portfolio turnover rate) reflects financial results for a single fund share.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

    Year Ended April 30,   
Class A Shares  2011  2010  2009  2008a 
Per Share Data ($):         
Net asset value, beginning of period  15.24  14.86  14.54  14.31 
Investment Operations:         
Investment income—netb  .33  .42  .53  .60 
Net realized and unrealized         
  gain (loss) on investments  .49  .45  .35  .20 
Total from Investment Operations  .82  .87  .88  .80 
Distributions:         
Dividends from investment income—net  (.39)  (.49)  (.56)  (.57) 
Net asset value, end of period  15.67  15.24  14.86  14.54 
Total Return (%)c  5.43  5.96  6.21  5.73d 
Ratios/Supplemental Data (%):         
Ratio of total expenses to average net assets  1.03  1.04  1.08  1.09e 
Ratio of net expenses to average net assets  .98  1.01  1.04  1.04e 
Ratio of net investment income         
  to average net assets  2.11  2.81  3.62  4.17e 
Portfolio Turnover Ratef  392.43  272.95  351.74  221.12 
Net Assets, end of period ($ x 1,000)  76,910  90,135  75,648  55,457 

 

a From May 3, 2007 (commencement of initial offering) to April 30, 2008. 
b Based on average shares outstanding at each month end. 
c Exclusive of sales charge. 
d Not annualized. 
e Annualized. 
f The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2011, 2010, 
2009 and 2008 were 64.60%, 66.28%, 138.79% and 60.06%, respectively. 

 

See notes to financial statements.

The Fund  17 

 


 

FINANCIAL HIGHLIGHTS (continued)

    Year Ended April 30,   
Class B Shares  2011  2010  2009  2008a 
Per Share Data ($):         
Net asset value, beginning of period  15.21  14.84  14.53  14.31 
Investment Operations:         
Investment income—netb  .24  .31  .44  .53 
Net realized and unrealized         
  gain (loss) on investments  .48  .45  .34  .19 
Total from Investment Operations  .72  .76  .78  .72 
Distributions:         
Dividends from investment income—net  (.29)  (.39)  (.47)  (.50) 
Net asset value, end of period  15.64  15.21  14.84  14.53 
Total Return (%)c  4.79  5.21  5.49  5.12d 
Ratios/Supplemental Data (%):         
Ratio of total expenses to average net assets  1.79  1.74  1.68  1.63e 
Ratio of net expenses to average net assets  1.57  1.73  1.64  1.58e 
Ratio of net investment income         
  to average net assets  1.58  2.16  3.11  3.65e 
Portfolio Turnover Ratef  392.43  272.95  351.74  221.12 
Net Assets, end of period ($ x 1,000)  990  2,341  5,910  12,041 

 

a From May 3, 2007 (commencement of initial offering) to April 30, 2008. 
b Based on average shares outstanding at each month end. 
c Exclusive of sales charge. 
d Not annualized. 
e Annualized. 
f The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2011, 2010, 
2009 and 2008 were 64.60%, 66.28%, 138.79% and 60.06%, respectively. 

 

See notes to financial statements.

18


 

    Year Ended April 30,   
Class C Shares  2011  2010  2009  2008a 
Per Share Data ($):         
Net asset value, beginning of period  15.23  14.84  14.53  14.31 
Investment Operations:         
Investment income—netb  .22  .31  .41  .49 
Net realized and unrealized         
  gain (loss) on investments  .49  .46  .36  .21 
Total from Investment Operations  .71  .77  .77  .70 
Distributions:         
Dividends from investment income—net  (.27)  (.38)  (.46)  (.48) 
Net asset value, end of period  15.67  15.23  14.84  14.53 
Total Return (%)c  4.68  5.24  5.40  4.96d 
Ratios/Supplemental Data (%):         
Ratio of total expenses to average net assets  1.76  1.78  1.82  1.81e 
Ratio of net expenses to average net assets  1.72  1.75  1.78  1.75e 
Ratio of net investment income         
  to average net assets  1.38  2.07  2.83  3.46e 
Portfolio Turnover Ratef  392.43  272.95  351.74  221.12 
Net Assets, end of period ($ x 1,000)  20,062  26,567  20,875  9,380 

 

a From May 3, 2007 (commencement of initial offering) to April 30, 2008. 
b Based on average shares outstanding at each month end. 
c Exclusive of sales charge. 
d Not annualized. 
e Annualized. 
f The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2011, 2010, 
2009 and 2008 were 64.60%, 66.28%, 138.79% and 60.06%, respectively. 

 

See notes to financial statements.

The Fund  19 

 


 

FINANCIAL HIGHLIGHTS (continued)

    Year Ended April 30,   
Class Z Shares  2011  2010  2009  2008  2007 
Per Share Data ($):           
Net asset value, beginning of period  15.25  14.87  14.55  14.38  14.21 
Investment Operations:           
Investment income—neta  .34  .45  .56  .63  .62 
Net realized and unrealized           
gain (loss) on investments  .50  .44  .34  .19  .19 
Total from Investment Operations  .84  .89  .90  .82  .81 
Distributions:           
Dividends from investment income—net  (.41)  (.51)  (.58)  (.65)  (.64) 
Net asset value, end of period  15.68  15.25  14.87  14.55  14.38 
Total Return (%)  5.58  6.13  6.40  5.84  5.90 
Ratios/Supplemental Data (%):           
Ratio of total expenses           
to average net assets  .87  .87  .90  .90  .89 
Ratio of net expenses           
to average net assets  .87  .87  .86  .85  .89 
Ratio of net investment income           
to average net assets  2.21  2.97  3.84  4.38  4.33 
Portfolio Turnover Rateb  392.43  272.95  351.74  221.12  271.49 
Net Assets, end of period ($ x 1,000)  613,268  638,374  641,140  657,486  697,280 

 

a Based on average shares outstanding at each month end. 
b The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2011, 2010, 
2009, 2008 and 2007 were 64.60%, 66.28%, 138.79%, 60.06% and 95.55%, respectively. 

 

See notes to financial statements.

20


 

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus GNMA Fund (the “fund”) is the sole series of Dreyfus Premier GNMA Fund, Inc. (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified open-end management investment company.The fund’s investment objective seeks to maximize total return, consisting of capital appreciation and current income. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser.

MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares.The fund is authorized to issue 1.4 billion shares of $.001 par value Common Stock.The fund currently offers four classes of shares: Class A (100 million shares authorized), Class B (100 million shares authorized), Class C (100 million shares authorized) and Class Z (1.1 billion shares authorized). Class A shares are subject to a sales charge imposed at the time of purchase. Class B shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class B share redemptions made within six years of purchase and automatically convert to Class A shares after six years.The fund no longer offers Class B shares, except in connection with dividend reinvestment and permitted exchanges of Class B shares. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Class Z shares are sold at net asset value per share. Class Z shares generally are not available for new accounts. Other differences between the classes include the services offered to and the expenses borne by each class, the allocation of certain transfer agency costs and certain voting rights. Income, expenses (other than expenses attributable to a specific class) and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authorita-

The Fund  21 

 


 

NOTES TO FINANCIAL STATEMENTS (continued)

tive U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The Company enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities excluding short-term investments (other than U.S. Treasury Bills), financial futures and options transactions are valued each business day by an independent pricing service (the “Service”) approved by the Board of Directors. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are valued as determined by the Service, based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Restricted securities, as well as securities or other assets for which recent market quotations are not readily available and are not valued by a pricing service approved by the Board of Directors, or are determined by the fund not to reflect accurately fair value, are valued at fair value as determined in good faith under the direction of the Board of Directors.The factors that may be considered when fair valuing a security include fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold and public trading in similar securities of

22


 

the issuer or comparable issuers. Short-term investments, excluding U.S. Treasury Bills, are carried at amortized cost, which approximates market value. Registered investment companies that are not traded on an exchange are valued at their net asset value. Financial futures and options, which are traded on an exchange, are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Options traded over-the-counter are valued at the mean between the bid and asked price.

The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value.This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements.These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The Fund  23 

 


 

NOTES TO FINANCIAL STATEMENTS (continued)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of April 30, 2011 in valuing the fund’s investments:

    Level 2—Other  Level 3—     
  Level 1—  Significant  Significant     
  Unadjusted  Observable  Unobservable     
  Quoted Prices  Inputs  Inputs  Total  
Assets ($)           
Investments in Securities:         
Asset-Backed    528,713    528,713  
Commercial           
Mortgage-Backed    2,237,552    2,237,552  
Mutual Funds  11,293,000      11,293,000  
Residential           
Mortgage-Backed    907,797    907,797  
U.S. Government           
Agencies/           
Mortgage-Backed    706,216,863    706,216,863  
U.S. Treasury    322,287,311    322,287,311  
Other Financial           
Instruments:           
Futures  879,821      879,821  
Options Purchased  93,750      93,750  
Liabilities ($)           
Other Financial           
Instruments:           
Futures  (14,352)      (14,352 ) 
Options Written  (128,906)      (128,906 ) 
† Amount shown represents unrealized appreciation (depreciation) at period end.     

 

In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about FairValue Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measure-

24


 

ments as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at April 30, 2011.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

Pursuant to a securities lending agreement with The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by the Manager, U.S. Government and Agency securities or letters of credit.The fund is entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner. During the period ended April 30, 2011, The Bank of New York Mellon earned $51 from lending portfolio securities, pursuant to the securities lending agreement.

(c) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” in the Act.

The Fund  25 

 


 

NOTES TO FINANCIAL STATEMENTS (continued)

The fund may invest in shares of certain affiliated investment companies also advised or managed by Dreyfus. Investments in affiliated investment companies for the period ended April 30, 2011 were as follows:

 

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net are declared and paid monthly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the“Code”).To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

On April 29, 2011, the Board of Directors declared a cash dividend of $.020, $.014, $.011 and $.022 per share from undistributed investment income-net for Class A, Class B, Class C and Class Z shares, respectively, payable on May 2, 2011 (ex-dividend date), to shareholders of record as of the close of business on April 29, 2011.

(e) 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.

26


 

As of and during the period ended April 30, 2011, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.

Each of the tax years in the four-year period ended April 30, 2011 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At April 30, 2011, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $703,203, accumulated capital losses $5,729,716 and unrealized appreciation $24,485,405.

The accumulated capital loss carryover is available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to April 30, 2011. If not applied, $437,769 of the carryover expires in fiscal 2014 and $5,291,947 expires in fiscal 2015.

The tax character of distributions paid to shareholders during the fiscal periods ended April 30, 2011 and April 30, 2010 were as follows: ordinary income $19,564,941 and $25,441,583, respectively.

During the period ended April 30, 2011, as a result of permanent book to tax differences, primarily due to the tax treatment for paydown gains and losses on mortgage-backed securities and amortization of premiums, the fund increased accumulated undistributed investment income-net by $1,833,939 and decreased accumulated net realized gain (loss) on investments by the same amount. Net assets and net asset value per share were not affected by this reclassification.

(f) New accounting pronouncement: In April 2011, the FASB issued ASU No. 2011-03 which relates to the accounting for repurchase agreements and similar agreements including mortgage dollar rolls, that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. The ASU modifies the criteria for determining effective control of transferred assets and as a result certain agreements may now be accounted for as secured borrowings.The ASU

The Fund  27 

 


 

NOTES TO FINANCIAL STATEMENTS (continued)

is effective prospectively for new transfers and existing transactions that are modified in the first interim or annual period beginning on or after December 15, 2011. Management is currently evaluating the implications of this change and its impact on the financial statements.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended April 30, 2011, the fund did not borrow under the Facilities.

NOTE 3—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 .60% 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 Class Z shares, exclusive of taxes, brokerage fees, interest on borrowings and extraordinary expenses, exceed 1 1 / 2 % of the value of Class Z shares average daily net assets, the fund may deduct from payments to be made to the Manager, or the Manager will bear, such excess expense with respect to Class Z shares.There was no reimbursement pursuant to the Agreement for Class Z shares during the period ended April 30, 2011.

The Manager had undertaken until November 30, 2010, to assume expenses of the fund’s Class A, Class B and Class C shares so that total annual fund operating expenses (exclusive of applicable Rule 12b-1 distribution plan fees and/or shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary

28


 

expenses) do not exceed .70% of the average daily net assets attributable to that class. The reduction in expenses, pursuant to the undertaking, amounted to $51,909 during the period ended April 30, 2011.

During the period ended April 30, 2011, the Distributor retained $29,905 from commissions earned on sales of the fund’s Class A shares and $1,210 and $7,476 from CDSCs on redemptions of the fund’s Class B and Class C shares, respectively.

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Class B and Class C shares pay the Distributor for distributing their shares at an annual rate of .50% of the value of the average daily net assets of Class B shares and .75% of the value of the average daily net assets of Class C shares. During the period ended April 30, 2011, Class B and Class C shares were charged $8,276 and $187,667, respectively, pursuant to the Plan.

Under the Service Plan adopted pursuant to Rule 12b-1 under the Act, Class Z shares reimburse the Distributor for distributing its shares, for servicing shareholder accounts and for advertising and marketing relating to Class Z shares.The Service Plan provides for a reimbursement to be made at an aggregate annual rate not to exceed .20% of the value of the average daily net assets of Class Z shares. The Distributor determines the amounts, if any, to be paid to Service Agents (a securities dealer, financial institution or other industry professional) to which it will make payments and the basis on which such payments are made. The Plan also separately provides for Class Z shares to bear the costs of preparing, printing and distributing certain of Class Z prospectuses and statements of additional information and costs associated with implementing and operating the Service Plan, not to exceed the greater of $100,000 or .005% of the value of the average daily net assets of Class Z shares for any full fiscal year. During the period ended April 30, 2011, Class Z shares were charged $813,105 pursuant to the Service Plan.

(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay the Distributor at an annual rate of .25% of the value of the average daily net assets of Class A, Class B and Class C shares, for the

The Fund  29 

 


 

NOTES TO FINANCIAL STATEMENTS (continued)

provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts.The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services.The Distributor determines the amounts to be paid to Service Agents. During the period ended April 30, 2011, Class A, Class B and Class C shares were charged $219,949, $4,138 and $62,556, respectively, pursuant to the Shareholder Services Plan.

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 April 30, 2011, the fund was charged $294,136 pursuant to the transfer agency agreement, which is included in Shareholder servicing costs in the Statement of Operations.

The fund has arrangements with the custodian and cash management bank whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

The fund compensates The Bank of New York Mellon under a cash management agreement for performing cash management services related to fund subscriptions and redemptions. During the period ended April 30, 2011, the fund was charged $49,912 pursuant to the cash management agreement, which is included in Shareholder servicing costs in the Statement of Operations.These fees were partially offset by earnings credits of $3,344.

The fund also compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. During the period ended April 30, 2011, the fund was charged $123,812 pursuant to the custody agreement.

During the period ended April 30, 2011, the fund was charged $6,327 for services performed by the Chief Compliance Officer.

30


 

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $349,475, Rule 12b-1 distribution plan fees $72,950, shareholder services plan fees $20,180, custodian fees $61,167, chief compliance officer fees $2,481 and transfer agency per account fees $53,200.

(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales (including paydowns) of investment securities, excluding short-term securities, financial futures and options transactions, during the period ended April 30, 2011, amounted to $2,971,468,903 and $3,068,825,402, respectively, of which $2,482,328,754 in purchases and $2,489,807,583 in sales were from mortgage dollar roll transactions.

Mortgage Dollar Rolls: A mortgage dollar roll transaction involves a sale by the fund of mortgage related securities that it holds with an agreement by the fund to repurchase similar securities at an agreed upon price and date.The securities purchased will bear the same interest rate as those sold, but generally will be collateralized by pools of mortgages with different prepayment histories than those securities sold.

Futures Contracts: In the normal course of pursuing its investment objective, the fund is exposed to market risk, including interest rate risk as a result of changes in value of underlying financial instruments.The fund invests in financial futures contracts in order to manage its exposure to or protect against changes in the market.A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a broker, which consist of cash or cash equivalents. The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Accordingly, variation margin payments are received or made to reflect

The Fund  31 

 


 

NOTES TO FINANCIAL STATEMENTS (continued)

daily unrealized gains or losses which are recorded in the Statement of Operations. Futures contracts are valued daily at the last sales price established by the Board of Trade or exchange upon which they are traded. When the contracts are closed, the fund recognizes a realized gain or loss. There is minimal counterparty credit risk to the fund with futures since futures are exchange traded, and the exchange’s clearinghouse guarantees the futures against default. Contracts open at April 30, 2011 are set forth in the Statement of Financial Futures.

Options: The fund purchases and writes (sells) put and call options to hedge against changes in interest rates, or as a substitute for an invest-ment.The fund is subject to interest rate risk in the course of pursuing its investment objectives through its investments in options contracts.A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the writer to sell, the underlying security or securities at the exercise price at any time during the option period, or at a specified date. Conversely, a put option gives the purchaser of the option the right (but not the obligation) to sell, and obligates the writer to buy the underlying security or securities at the exercise price at any time during the option period, or at a specified date.

As a writer of call options, the fund receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the financial instrument underlying the option. Generally, the fund realizes a gain, to the extent of the premium, if the price of the underlying financial instrument decreases between the date the option is written and the date on which the option is terminated. Generally, the fund incurs a loss, if the price of the financial instrument increases between those dates.

As a writer of put options, the fund receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the financial instrument underlying the option. Generally, the fund realizes a gain, to the extent of the premium, if the price of the underlying financial instrument increases between the date the option is written and the date on which the option is terminated. Generally, the fund incurs a loss, if the price of the financial instrument decreases between those dates.

32


 

As a writer of an option, the fund has no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option.There is a risk of loss from a change in value of such options which may exceed the related premiums received. One risk of holding a put or a call option is that if the option is not sold or exercised prior to its expiration, it becomes worthless. However, this risk is limited to the premium paid by the fund. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations.

The following summarizes the fund’s call/put options written for the period ended April 30, 2011:

  Face Amount    Options Terminated  
  Covered by  Premiums    Net Realized  
Options Written:  Contracts ($)  Received ($)  Cost ($)  Gain (Loss) ($)  
Contracts outstanding           
April 30, 2010  149,327,000  3,877,305       
Contracts written  34,107,000  2,270,010       
Contracts terminated:           
Contracts closed  162,087,000  5,142,608  5,169,697  (27,089 ) 
Contracts expired  20,597,000  883,865    883,865  
Total contracts           
terminated  182,684,000  6,026,473  5,169,697  856,776  
Contracts outstanding           
April 30, 2011  750,000  120,842       

 

The following summarizes the average market value of derivatives outstanding during the period ended April 30, 2011:

  Average Market Value ($) 
Interest rate futures contracts  42,258,542 
Interest rate options contracts  1,011,358 

 

At April 30, 2011, the cost of investments for federal income tax purposes was $1,019,104,122; accordingly, accumulated net unrealized appreciation on investments was $24,460,864, consisting of $25,627,973 gross unrealized appreciation and $1,167,109 gross unrealized depreciation.

The Fund  33 

 


 

REPORT OF INDEPENDENT REGISTERED 
PUBLIC ACCOUNTING FIRM 

 

Shareholders and Board of Directors
Dreyfus GNMA Fund

We have audited the accompanying statement of assets and liabilities, including the statements of investments, financial futures and options written, of Dreyfus GNMA Fund (the sole series comprising Dreyfus Premier GNMA Fund, Inc.) as of April 30, 2011, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2011 by correspondence with the custodian and others.We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus GNMA Fund at April 30, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated periods, in conformity with U.S. generally accepted accounting principles.

New York, New York
June 28, 2011

34


 

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes the fund hereby designates 100% of ordinary income dividends paid during the fiscal year ended April 30, 2011 as qualifying “interest related dividends.”

The Fund  35 

 


 

INFORMATION ABOUT THE RENEWAL OF THE 
FUND’S MANAGEMENT AGREEMENT (Unaudited) 

 

At a meeting of the fund’s Board of Directors held on November 8-9, 2011, the Board considered the renewal of the fund’s Management Agreement pursuant to which Dreyfus provides the fund with investment advisory and administrative services (the“Agreement”).The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of Dreyfus. In considering the renewal of the Agreement, the Board considered all factors that it believed to be relevant, including those discussed below.The Board did not identify any one factor as dispositive, and each Board member may have attributed different weights to the factors considered.

Analysis of Nature, Extent, and Quality of Services Provided to the Fund.The Board members considered information previously provided to them in presentations from representatives of Dreyfus regarding the nature, extent, and quality of the services provided to funds in the Dreyfus fund complex, and representatives of Dreyfus confirmed that there had been no material changes in this information. Dreyfus provided the number of open accounts in the fund, the fund’s asset size and the allocation of fund assets among distribution channels. Dreyfus also had previously provided information regarding the diverse intermediary relationships and distribution channels of funds in the Dreyfus fund complex and Dreyfus’ corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each distribution channel, including the distribution channel(s) for the fund.

The Board members also considered research support available to, and portfolio management capabilities of, the fund’s portfolio management personnel and that Dreyfus also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements.The Board members also considered Dreyfus’ extensive administrative, accounting, and compliance infrastructures.

36


 

Comparative Analysis of the Fund’s Performance and Management Fee and Expense Ratio. The Board members reviewed reports prepared by Lipper, Inc. (“Lipper”), an independent provider of investment company data, which included information comparing (1) the fund’s performance with the performance of a group of comparable funds (the “Performance Group”) and with a broader group of funds (the “Performance Universe”), all for various periods ended September 30, 2010, and (2) the fund’s actual and contractual management fees and total expenses with those of a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), the information for which was derived in part from fund financial statements available to Lipper as of September 30, 2010. Dreyfus previously had furnished the Board with a description of the methodology Lipper used to select the Performance Group and Performance Universe and the Expense Group and Expense Universe.

Dreyfus representatives stated that the usefulness of performance comparisons may be affected by a number of factors, including different investment limitations that may be applicable to the fund and comparison funds. The Board members discussed the results of the comparisons and noted that the fund’s total return performance was above the Performance Group median and Performance Universe median for the two most recent periods, and below the Performance Group median and Performance Universe median for the longer-term time periods.The Board also noted that the fund’s yield performance was variously below, at, or above the Performance Group median and Performance Universe median for each one-year period ended September 30, 2010. Dreyfus also provided a comparison of the fund’s calendar year total returns to the returns of the fund’s Lipper category average, noting that the fund’s total return was above the category average in two of the 10 calendar years, including in the most recently completed calendar year.The Board noted the fund’s improved relative total return performance over the prior two year period.

The Fund  37 

 


 

INFORMATION ABOUT THE RENEWAL OF THE FUND’S 
MANAGEMENT AGREEMENT (Unaudited) (continued) 

 

The Board members also reviewed the range of actual and contractual management fees and total expenses of the Expense Group and Expense Universe funds and discussed the results of the comparisons. They noted that the fund’s contractual management fee was above the Expense Group median, the fund’s actual management fee was above the Expense Group median and Expense Universe median, and the fund’s total expenses were above the Expense Group median and Expense Universe median.

Representatives of Dreyfus reviewed with the Board members the management or investment advisory fees (1) paid by funds advised or administered by Dreyfus that are in the same Lipper category as the fund and (2) paid to Dreyfus or the Dreyfus-affiliated primary employer of the fund’s primary portfolio manager for advising any separate accounts and/or other types of client portfolios that are considered to have similar investment strategies and policies as the fund (the “Similar Clients”), and explained the nature of the Similar Clients.They discussed differences in fees paid and the relationship of the fees paid in light of any differences in the services provided and other relevant factors.The Board members considered the relevance of the fee information provided for the Similar Clients to evaluate the appropriateness and reasonableness of the fund’s management fee.

Analysis of Profitability and Economies of Scale. Dreyfus’ representatives reviewed the expenses allocated and profit received by Dreyfus and the resulting profitability percentage for managing the fund, and the method used to determine the expenses and profit. The Board concluded that the profitability results were not unreasonable, given the services rendered and service levels provided by Dreyfus. The Board also noted the expense limitation arrangement and its effect on Dreyfus’ profitability. The Board previously had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus fund complex.The consulting firm also had analyzed where any economies of scale might emerge in connection with the management of a fund.

38


 

The Board’s counsel stated that the Board members should consider the profitability analysis (1) as part of their evaluation of whether the fees under the Agreement bear a reasonable relationship to the mix of services provided by Dreyfus, including the nature, extent and quality of such services, and (2) in light of the relevant circumstances for the fund and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders. Dreyfus representatives noted that a discussion of economies of scale is predicated on a fund having achieved a substantial size with increasing assets and that, if a fund’s assets had been stable or decreasing, the possibility that Dreyfus may have realized any economies of scale would be less. They also noted that, as a result of shared and allocated costs among funds in the Dreyfus funds complex, the extent of economies of scale could depend substantially on the level of assets in the complex as a whole, so that increases and decreases in complex-wide assets can affect potential economies of scale in a manner that is disproportionate to, or even in the opposite direction from, changes in the fund’s asset level. The Board members also considered potential benefits to Dreyfus from acting as investment adviser and noted that there were no soft dollar arrangements in effect for trading the fund’s investments.

At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the renewal of the Agreement. Based on the discussions and considerations as described above, the Board concluded and determined as follows.

  • The Board concluded that the nature, extent, and quality of the services provided by Dreyfus are adequate and appropriate.

  • The Board was satisfied with the fund’s overall performance, partic- ularly during recent time periods, in light of the considerations described above.

  • The Board concluded that the fee paid to Dreyfus was reasonable in light of the considerations described above.

The Fund  39 

 


 

INFORMATION ABOUT THE RENEWAL OF THE FUND’S 
MANAGEMENT AGREEMENT (Unaudited) (continued) 

 

  • The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in connection with the management of the fund had been adequately considered by Dreyfus in connection with the fee rate charged to the fund pursuant to the Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

The Board members considered these conclusions and determinations, along with information received on a routine and regular basis throughout the year. In addition, it should be noted that the Board’s consideration of the contractual fee arrangements for this fund had the benefit of a number of years of reviews of prior or similar agreements during which lengthy discussions took place between the Board members and Dreyfus representatives. Certain aspects of the arrangements may receive greater scrutiny in some years than in others, and the Board members’ conclusions may be based, in part, on their consideration of the same or similar arrangements in prior years. The Board members determined that renewal of the Agreement was in the best interests of the fund and its shareholders.

40


 

BOARD MEMBERS INFORMATION (Unaudited)


The Fund  41 

 


 

BOARD MEMBERS INFORMATION (Unaudited) (continued)


42


 


Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, NewYork, NewYork 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.

Arnold S. Hiatt, Emeritus Board Member

The Fund  43 

 


 

OFFICERS OF THE FUND (Unaudited)

BRADLEY J. SKAPYAK, President since 
January 2010. 

 

Chief Operating Officer and a director of the Manager since June 2009. From April 2003 to June 2009, Mr. Skapyak was the head of the Investment Accounting and Support Department of the Manager. He is an officer of 76 investment companies (comprised of 170 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since February 1988.

MICHAEL A. ROSENBERG, Vice President 
and Secretary since August 2005. 

 

Assistant General Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 51 years old and has been an employee of the Manager since October 1991.

KIESHA ASTWOOD, Vice President and 
Assistant Secretary since January 2010. 

 

Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. She is 38 years old and has been an employee of the Manager since July 1995.

JAMES BITETTO, Vice President and 
Assistant Secretary since August 2005. 

 

Senior Counsel of BNY Mellon and Secretary of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President 
and Assistant Secretary since 
August 2005. 

 

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. She is 55 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and 
Assistant Secretary since August 2005. 

 

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since June 2000.

KATHLEEN DENICHOLAS, Vice President 
and Assistant Secretary since 
January 2010. 

 

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. She is 36 years old and has been an employee of the Manager since February 2001.

JANETTE E. FARRAGHER, Vice President 
and Assistant Secretary since 
August 2005. 

 

Assistant General Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. She is 48 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and 
Assistant Secretary since August 2005. 

 

Managing Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since February 1991.

M. CRISTINA MEISER, Vice President and 
Assistant Secretary since January 2010. 

 

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. She is 41 years old and has been an employee of the Manager since August 2001.

44


 

ROBERT R. MULLERY, Vice President and 
Assistant Secretary since August 2005. 

 

Managing Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and 
Assistant Secretary since August 2005. 

 

Managing Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since 
November 2001. 

 

Director – Mutual Fund Accounting of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since April 1985.

RICHARD CASSARO, Assistant Treasurer 
since January 2008. 

 

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since September 1982.

GAVIN C. REILLY, Assistant Treasurer 
since December 2005. 

 

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since April 1991.

ROBERT ROBOL, Assistant Treasurer 
since August 2003. 

 

Senior Accounting Manager – Fixed Income Funds of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since October 1988.

ROBERT SALVIOLO, Assistant Treasurer 
since July 2007. 

 

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 1989.

ROBERT SVAGNA, Assistant Treasurer 
since August 2005. 

 

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 77 investment companies (comprised of 195 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since November 1990.

The Fund  45 

 


 

OFFICERS OF THE FUND (Unaudited) (continued)

JOSEPH W. CONNOLLY, Chief Compliance 
Officer since September 2004. 

 

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (77 investment companies, comprised of 195 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 53 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

STEPHEN J. STOREN, Anti-Money 
Laundering Compliance Officer since 
May 2011. 

 

Chief Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 73 investment companies (comprised of 192 portfolios) managed by the Manager. He is 56 years old and has been an employee of the Distributor since October 1999.

46


 

NOTES


 

For More Information


Ticker Symbols:  Class A: GPGAX  Class B: GPGBX  Class C: GPNCX  Class Z: DRGMX 

 

For Class Z shareholders

Telephone 1-800-645-6561

For Class A, B and C shareholders

Telephone Call your financial representative or 1-800-554-4611

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 E-mail Send your request to info@dreyfus.com Internet Information can be viewed online or downloaded at: http://www.dreyfus.com

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.



 

 

 

Item 2.                        Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.  There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

Item 3.                        Audit Committee Financial Expert.

The Registrant's Board has determined that Ehud Houminer, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC").   Ehud Houminer is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4.                        Principal Accountant Fees and Services.

 

(a)  Audit Fees.  The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $    56,619  in 2010 and $35,820 in 2011.

 

(b)  Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $5,382         in 2010 and $6,000 in 2011. These services consisted of one or more of the following: (i) agreed upon procedures related to compliance with Internal Revenue Code section 817(h), (ii) security counts required by Rule 17f-2 under the Investment Company Act of 1940, as amended, (iii) advisory services as to the accounting or disclosure treatment of Registrant transactions or events and (iv) advisory services to the accounting or disclosure treatment of the actual or potential impact to the Registrant of final or proposed rules, standards or interpretations by the Securities and Exchange Commission, the Financial Accounting Standards Boards or other regulatory or standard-setting bodies.

 

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2010 and $0 in 2011.

 

(c)  Tax Fees.  The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice, and tax planning ("Tax Services") were $3,488 in 2010 and $4,332  in 2011. These services consisted of: (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments; (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held. The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates, which required pre-approval by the Audit Committee were $0 in 2010 and $0 in 2011. 

 

 


 

 

(d)  All Other Fees.  The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $0 in 2010 and $253 in 2011. These services consisted of a review of the Registrant's anti-money laundering program.

 

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee, were  $0 in 2010 and $0 in 2011. 

 

(e)(1) Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. The pre-approved services in the Policy can include pre-approved audit services, pre-approved audit-related services, pre-approved tax services and pre-approved all other services.  Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence.  Pre-approvals pursuant to the Policy are considered annually.

(e)(2) Note: None of the services described in paragraphs (b) through (d) of this Item 4 were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

(f) None of the hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal account's full-time, permanent employees.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $27,572,994 in 2010 and $21,309,173 in 2011. 

 

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence.

 

Item 5.                        Audit Committee of Listed Registrants.

                        Not applicable.  [CLOSED-END FUNDS ONLY]

Item 6.                        Investments.

(a)                    Not applicable.

Item 7.            Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

                        Not applicable.  [CLOSED-END FUNDS ONLY]

Item 8.                        Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.  [CLOSED-END FUNDS ONLY, beginning with reports for periods ended on and after December 31, 2005]

Item 9.                        Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

 


 

 

                        Not applicable.  [CLOSED-END FUNDS ONLY]

Item 10.          Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures applicable to Item 10.

Item 11.          Controls and Procedures.

(a)        The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)        There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. 

Item 12.          Exhibits.

(a)(1)   Code of ethics referred to in Item 2.

(a)(2)   Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3)   Not applicable.

(b)        Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

 


 

 

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.

Dreyfus Premier GNMA Fund, Inc.

-          Dreyfus GNMA Fund

 

By:       /s Bradley J. Skapyak

            Bradley J. Skapyak,

            President

 

Date:

June 13, 2011

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

By:       /s Bradley J. Skapyak

            Bradley J. Skapyak,

            President

 

Date:

June 13, 2011

 

By:       /s/ James Windels

            James Windels,

            Treasurer

 

Date:

June 13, 2011

 

 

EXHIBIT INDEX

(a)(1)   Code of ethics referred to in Item 2.

(a)(2)   Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.  (EX-99.CERT)

(b)        Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.  (EX-99.906CERT)

 

 


 
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M8H/M<=UAS-'&8U8R,?E/4$9P>@Y/I5F@`HHHH`****`"BBB@`HHHH`****`" MBBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`** M**`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHH (H`****`/_]D_ ` end EX-99 14 codeofethics-265.htm CODE OF ETHICS codeofethics-265.htm - Generated by SEC Publisher for SEC Filing

 

THE DREYFUS FAMILY OF FUNDS

CODE OF ETHICS FOR PRINCIPAL EXECUTIVE

AND SENIOR FINANCIAL OFFICERS

 

1.      Covered Officers/Purpose of the Code

This code of ethics (the "Code") for the investment companies within the complex (each, a "Fund") applies to each Fund's Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer or Controller, or other persons performing similar functions, each of whom is listed on Exhibit A (the "Covered Officers"), for the purpose of promoting:

·           honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

·           full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with, or submits to, the Securities and Exchange Commission (the "SEC") and in other public communications made by the Fund;

·           compliance with applicable laws and governmental rules and regulations;

·           the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

·           accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

2.      Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

Overview. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his service to, the Fund.  For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Fund.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940, as amended (the "Investment Company Act"), and the Investment Advisers Act of 1940, as amended (the "Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as "affiliated persons" of the Fund. The compliance programs and procedures of the Fund and the Fund's investment adviser (the "Adviser") are designed to prevent, or identify and correct, violations of these provisions. The Code does not, and is not intended to, repeat or replace these programs and procedures, and the circumstances they cover fall outside of the parameters of the Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Fund and the Adviser of which the Covered Officers are also officers or employees.  As a result, the Code recognizes that the Covered Officers, in the ordinary course of their duties (whether formally for the Fund or for the Adviser, or for both), will be involved in establishing policies and implementing decisions that will have different effects on the Adviser and the Fund. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the Adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Fund and, if addressed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, will be deemed to have been handled ethically. In addition, it is recognized by the Fund's Board that the Covered Officers also may be officers or employees of one or more other investment companies covered by this or other codes of ethics.

 


 

 

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act.  Covered Officers should keep in mind that the Code cannot enumerate every possible scenario.  The overarching principle of the Code is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Fund.

Each Covered Officer must:

·           not use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund whereby the Covered Officer would benefit personally to the detriment of the Fund;

·           not cause the Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fund; and

·           not retaliate against any employee or Covered Officer for reports of potential violations that are made in good faith.

3.      Disclosure and Compliance

·           Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the Fund within his area of responsibility;

·           each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund, including to the Fund's Board members and auditors, and to governmental regulators and self-regulatory organizations;

·           each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Fund and the Adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Fund files with, or submits to, the SEC and in other public communications made by the Fund; and

·           it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

 


 

 

4.      Reporting and Accountability

Each Covered Officer must:

·           upon adoption of the Code (or thereafter, as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he has received, read, and understands the Code;

·           annually thereafter affirm to the Board that he has complied with the requirements of the Code; and

·           notify the Adviser's General Counsel (the "General Counsel") promptly if he knows of any violation of the Code.  Failure to do so is itself a violation of the Code.

The General Counsel is responsible for applying the Code to specific situations in which questions are presented under it and has the authority to interpret the Code in any particular situation. However, waivers sought by any Covered Officer will be considered by the Fund's Board.

The Fund will follow these procedures in investigating and enforcing the Code:

·           the General Counsel will take all appropriate action to investigate any potential violations reported to him;

·           if, after such investigation, the General Counsel believes that no violation has occurred, the General Counsel is not required to take any further action;

·           any matter that the General Counsel believes is a violation will be reported to the Board;

·           if the Board concurs that a violation has occurred, it will consider appropriate action, which may include: review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the Adviser or its board; or dismissal of the Covered Officer;

·           the Board will be responsible for granting waivers, as appropriate; and

·           any waivers of or amendments to the Code, to the extent required, will be disclosed as provided by SEC rules.

5.      Other Policies and Procedures

The Code shall be the sole code of ethics adopted by the Fund for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. The Fund's, its principal underwriter's and the Adviser's codes of ethics under Rule 17j-1 under the Investment Company Act and the Adviser's additional policies and procedures, including its Code of Conduct, are separate requirements applying to the Covered Officers and others, and are not part of the Code.

 


 

 

6.      Amendments 

The Code may not be amended except in written form, which is specifically approved or ratified by a majority vote of the Fund's Board, including a majority of independent Board members.

7.      Confidentiality 

All reports and records prepared or maintained pursuant to the Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or the Code, such matters shall not be disclosed to anyone other than the appropriate Funds and their counsel, the appropriate Boards (or Committees) and their counsel and the Adviser

8.      Internal Use

The Code is intended solely for the internal use by the Fund and does not constitute an admission, by or on behalf of the Fund, as to any fact, circumstance, or legal conclusion.

                                                                                                Dated as of:  July 1, 2003

 


 

 

Exhibit A

Persons Covered by the Code of Ethics

 

 

Bradley J. Skapyak

President

(Principal Executive Officer)

 

 

 

 

James Windels

 

Treasurer

(Principal Financial and Accounting Officer)

 

 

Revised as of January 1, 2010

 


 
EX-99.CERT 15 exhibit302-265.htm CERTIFICATION REQUIRED BY 30A-2 exhibit302-265.htm - Generated by SEC Publisher for SEC Filing

 

[EX-99.CERT]—Exhibit  (a)(2)

 

SECTION 302 CERTIFICATION

I, Bradley J. Skapyak, certify that:

1.  I have reviewed this report on Form N-CSR of Dreyfus GNMA Fund, a series of Dreyfus Premier GNMA Fund, Inc. ;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.  The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5.  The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:       /s/ Bradley J. Skapyak

            Bradley J. Skapyak,

            President

Date:    June 13, 2011

 


 

 

SECTION 302 CERTIFICATION

I, James Windels, certify that:

1.  I have reviewed this report on Form N-CSR of Dreyfus GNMA Fund, a series of Dreyfus Premier GNMA Fund, Inc. ;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.  The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5.  The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:       /s/ James Windels

            James Windels,

            Treasurer

Date:    June 13, 2011

 

 


 
EX-99.906CERT 16 exhibit906-265.htm CERTIFICATION REQUIRED BY SECTION 906 exhibit906-265.htm - Generated by SEC Publisher for SEC Filing

 

 [EX-99.906CERT] 

Exhibit (b)

 

 

SECTION 906 CERTIFICATIONS

            In connection with this report on Form N-CSR for the Registrant as furnished to the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

            (1)        the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable; and

 

            (2)        the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

By:       /s Bradley J. Skapyak

Bradley J. Skapyak,

            President

 

Date:    June 13, 2011

 

 

By:       /s/ James Windels

            James Windels,

            Treasurer

 

Date:    June 13, 2011

 

 

This certificate is furnished pursuant to the requirements of Form N-CSR and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.