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 |
811-05202 | |||||
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The Dreyfus/Laurel Funds, Inc. |
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(Exact name of Registrant as specified in charter) |
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c/o The Dreyfus Corporation 200 Park Avenue New York, New York 10166 |
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(Address of principal executive offices) (Zip code) |
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Bennett A. MacDougall, Esq. 200 Park Avenue New York, New York 10166 |
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(Name and address of agent for service) |
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Registrant's telephone number, including area code: |
(212) 922-6000 | |||||
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Date of fiscal year end:
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11/30 |
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Date of reporting period: |
11/30/2015 |
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The following N-CSR relates only to the Registrant’s series listed below and does not affect the other series of the Registrant, which have a different fiscal year end and, therefore, different N-CSR reporting requirements. A separate N-CSR will be filed for each series as appropriate.
General AMT-Free Municipal Money Market Fund
General Treasury and Agency Money Market Fund
FORM N-CSR
Item 1. Reports to Stockholders.
General AMT-Free Municipal Money Market Fund
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ANNUAL REPORT |
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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
With Those of Other Funds |
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Public Accounting Firm |
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FOR MORE INFORMATION
Back Cover
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The Fund |
Dear Shareholder:
We are pleased to present this annual report for General AMT-Free Municipal Money Market Fund, which, as a result of a change to the fund’s fiscal year-end, only covers the one-month period from October 31, 2015, through November 30, 2015. For information about how the fund performed during the one-month reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.
For the annual period ending November 30, 2015, financial markets proved volatile amid choppy U.S. and global economic growth. Employment and housing market gains helped U.S. stocks advance over the reporting period’s first half, driving some broad measures of market performance to new record highs in the spring. Although those gains were erased over the summer when global economic instability undermined investor sentiment, a renewed rally in the fall enabled most stock indices to end the reporting period in mildly positive territory. In contrast, international stocks mostly provided negative results, but developed markets fared better than emerging markets amid falling commodity prices and depreciating currency values. U.S. bonds produced modestly positive total returns overall, with municipal bonds achieving higher returns, on average, than U.S. government securities and corporate-backed bonds.
We expect market volatility to persist over the near term until investors see greater clarity regarding domestic and global economic conditions. Our investment strategists and portfolio managers are monitoring developments carefully, keeping a close watch on credit spreads, currency values, commodity prices, corporate profits, economic trends in the emerging markets, and other developments that could influence investor sentiment. Over the longer term, we remain confident that markets are likely to benefit as investors increasingly recognize that inflation is likely to stay low, economic growth expectations are stabilizing, and monetary policies remain accommodative in most regions of the world. In our view, investors will continue to be well served under these circumstances by a long-term perspective and a disciplined investment approach.
Thank you for your continued confidence and support.
Sincerely,
J. Charles Cardona
President
The Dreyfus Corporation
December 17, 2015
2
DISCUSSION OF FUND PERFORMANCE
For the period of November 1, 2015, through November 30, 2015, as provided by Bill Vasiliou, Portfolio Manager
Fund and Market Performance Overview
For the one-month period ended November 30, 2015, General AMT-Free Municipal Money Market Fund’s Dreyfus shares produced a yield of 0.00%, Class A shares yielded 0.00%, Class B shares yielded 0.00%, and Class R shares yielded 0.00%. Taking into consideration the effects of compounding, the fund’s Dreyfus shares, Class A shares, Class B shares, and Class R shares produced annualized effective yields of 0.00% for the same period.1
Although the Federal Reserve Board (the “Fed”) raised the federal funds rate in December 2015, after the reporting period’s end, it was unchanged during November, and yields of municipal money market instruments remained low.
Effective September 1, 2015, the fund’s name changed from Dreyfus AMT-Free Municipal Reserves to General AMT-Free Municipal Money Market Fund. Its BASIC shares and Investor shares were redesignated as Dreyfus shares and Class A shares, respectively. The fiscal year-end has changed from October 31 to November 30.
The Fund’s Investment Approach
The fund seeks a high level of current income, consistent with stability of principal, that is exempt from federal income tax. The fund also seeks to provide income exempt from the federal alternative minimum tax. To pursue its goal, the fund normally invests substantially all of its assets in short-term, high-quality municipal obligations that provide income exempt from federal personal income tax and the federal alternative minimum tax. Among these are municipal notes, short-term municipal bonds, tax-exempt commercial paper, and municipal leases. The fund also may invest in high-quality, short-term structured notes, which are derivative instruments whose value is tied to underlying municipal obligations.
Uneven Economic Recovery Continued
November 2015 continued to see a sustained U.S. economic recovery characterized by falling unemployment, robust job creation, and improved consumer and business confidence. Although long-term interest rates typically rise in a growing economy, bond yields generally have remained low due to low inflation and robust demand for U.S. Treasury securities from global investors seeking safe havens from global macroeconomic instability.
Issuance has continued to be a main driver of the municipal money markets. The need for short-term financing generally has diminished and tax receipts stayed strong in the recovering U.S. economy, supporting better financial conditions for many municipalities and keeping short-term yields anchored near record lows. Robust demand for a limited supply of variable rate demand notes (VRDNs) kept downward pressure on yields of variable-rate instruments. However, the outlook for higher interest rates, combined with money market reform, has driven the one-year note index above historical lows.
Municipal credit quality generally has continued to improve. Many states and municipalities have seen tax revenues climb beyond pre-recession levels, enabling them to balance their budgets and replenish reserves. The degree of recovery by region, however, remains varied.
3
DISCUSSION OF FUND PERFORMANCE (continued)
Focus on Quality and Liquidity
Careful and well-researched credit selection has remained key to the fund’s management. We have focused mainly on instruments with strong liquidity characteristics, including VRDNs, and we have maintained broad diversification across municipal issuers and instruments backed by third parties. More specifically, we have identified stable credits meeting our investment criteria among state general obligation bonds; essential service revenue bonds issued by water, sewer, and electric enterprises; certain local credits with strong financial positions and stable tax bases; and various healthcare and education issuers. We have continued to maintain the fund’s weighted average maturity in line with industry averages.
Fed to Raise Rates Gradually
In mid-December 2015, after the reporting period’s end, the Fed raised short-term interest rates by 25 basis points to between 0.25% and 0.50%, stating, “The economic recovery has clearly come a long way, though it is not yet complete.” At the same time, the Fed made clear that monetary policy “remains accommodative” and “only gradual increases” are expected in the future.
Partly in anticipation of this move, yields of one-year municipal notes began to move somewhat higher. While we will watch for further evidence of this trend, we continue to believe that an emphasis on preservation of capital and liquidity remains the prudent course.
December 17, 2015
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
Municipal securities holdings (as applicable), while rated in the highest rating category by one or more National Recognized Statistical Rating Organizations (NRSROs) (or unrated, if deemed of comparable quality by Dreyfus), involve credit and liquidity risks and risk of principal loss.
1 Annualized effective yield is based upon dividends declared daily and reinvested monthly. Past performance is no guarantee of future results. Yields fluctuate. Yield provided reflects the absorption of certain fund expenses by The Dreyfus Corporation pursuant to an undertaking in effect that may be extended, terminated, or modified at any time. Had these expenses not been absorbed, fund yields would have been lower, and in some cases, 7-day yields during the reporting period would have been negative absent the expense absorption.
4
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in General AMT-Free Municipal Money Market Fund from November 1, 2015 to November 30, 2015. 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 |
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assuming actual returns for the one month ended November 30, 2015 |
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Class B |
Dreyfus |
Class R | |
Expenses paid per $1,000† |
$ .12 |
$ .12 |
$ .12 |
$ .12 | |||
Ending value (after expenses) |
$ 1,000.10 |
$ 1,000.10 |
$ 1,000.10 |
$ 1,000.10 |
COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)
Using the SEC’s method to compare expenses
The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
Expenses and Value of a $1,000 Investment |
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assuming a hypothetical 5% annualized return for the six months ended November 30, 2015†† |
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Class B |
Dreyfus |
Class R | |
Expenses paid per $1,000††† |
$ .71 |
$ .71 |
$ .71 |
$ .71 | |||
Ending value (after expenses) |
$ 1,024.37 |
$ 1,024.37 |
$ 1,024.37 |
$ 1,024.37 |
† Expenses are equal to the fund’s annualized expense ratio of .14% for Class A, .14% for Class B, .14% for Dreyfus Class and .14% for Class R, multiplied by the average account value over the period, multiplied by 30/365 (to reflect the actual days in the period).
†† Please note that the hypothetical expenses paid during the period reflect projected activity for the full six month period for purposes of comparability. This projection assumes that annualized expense ratios were in effect during the period June 1, 2015 to November 30, 2015.
††† Expenses are equal to the fund’s annualized expense ratio of .14% for Class A, .14% for Class B, .14% for Dreyfus Class and .14% for Class R, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
5
STATEMENT OF INVESTMENTS
November 30, 2015
Short-Term Investments - 99.8% |
Coupon |
Maturity |
Principal |
Value ($) |
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Alabama - 3.4% |
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Chatom Industrial Development Board, |
0.17 |
12/7/15 |
5,000,000 |
a |
5,000,000 |
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Mobile County Industrial Development Authority, |
0.02 |
12/7/15 |
3,000,000 |
a |
3,000,000 |
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8,000,000 |
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Arizona - 4.4% |
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Arizona Transportation Board, |
5.00 |
7/1/16 |
1,000,000 |
1,026,971 |
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Phoenix Industrial Development Authority, |
0.12 |
12/7/15 |
1,075,000 |
a |
1,075,000 |
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Tucson Industrial Development Authority, |
0.02 |
12/7/15 |
1,250,000 |
a |
1,250,000 |
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Yavapai County Industrial Development Authority, |
0.04 |
12/7/15 |
7,000,000 |
a |
7,000,000 |
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10,351,971 |
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Colorado - 6.0% |
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Colorado Educational and Cultural Facilities Authority, |
0.05 |
12/7/15 |
930,000 |
a |
930,000 |
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Colorado Educational and Cultural Facilities Authority, |
0.12 |
12/7/15 |
2,425,000 |
a |
2,425,000 |
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Colorado Educational and Cultural Facilities Authority, |
0.12 |
12/7/15 |
1,510,000 |
a |
1,510,000 |
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Colorado Health Facilities Authority, |
0.12 |
12/7/15 |
1,000,000 |
a |
1,000,000 |
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Colorado Postsecondary Educational Facilities Authority, |
0.17 |
12/7/15 |
205,000 |
a |
205,000 |
6
Short-Term Investments - 99.8% (continued) |
Coupon |
Maturity |
Principal |
Value ($) |
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Colorado - 6.0% (continued) |
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Gateway Regional Metropolitan District, |
0.07 |
12/7/15 |
2,565,000 |
a |
2,565,000 |
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Lafayette, Exempla Improvement District, Special Improvement District Number 02-01, |
0.05 |
12/7/15 |
500,000 |
a |
500,000 |
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Sheridan Redevelopment Agency, |
0.04 |
12/7/15 |
4,865,000 |
a |
4,865,000 |
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14,000,000 |
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Connecticut - 4.4% |
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Connecticut Health and Educational Facilities Authority, |
0.04 |
12/7/15 |
4,695,000 |
a |
4,695,000 |
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Fairfield, |
5.00 |
7/1/16 |
300,000 |
308,098 |
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Shelton Housing Authority, |
0.06 |
12/7/15 |
5,275,000 |
a |
5,275,000 |
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10,278,098 |
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Florida - 5.0% |
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Alachua County Housing Finance Authority, |
0.03 |
12/7/15 |
1,100,000 |
a |
1,100,000 |
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Brevard County, |
0.17 |
12/7/15 |
525,000 |
a |
525,000 |
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Collier County Industrial Development Authority, |
0.15 |
12/7/15 |
2,780,000 |
a |
2,780,000 |
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Hillsborough County, |
0.05 |
12/7/15 |
945,000 |
a |
945,000 |
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Hillsborough County Industrial Development Authority, |
0.15 |
12/7/15 |
1,100,000 |
a |
1,100,000 |
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Jacksonville, |
0.12 |
12/7/15 |
3,300,000 |
a |
3,300,000 |
7
STATEMENT OF INVESTMENTS (continued)
Short-Term Investments - 99.8% (continued) |
Coupon |
Maturity |
Principal |
Value ($) |
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Florida - 5.0% (continued) |
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Jacksonville, |
0.12 |
12/7/15 |
590,000 |
a |
590,000 |
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Palm Beach County, |
0.12 |
12/7/15 |
1,355,000 |
a |
1,355,000 |
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11,695,000 |
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Georgia - 3.0% |
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Cobb County Development Authority, |
0.12 |
12/7/15 |
735,000 |
a |
735,000 |
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Cobb County Development Authority, |
0.06 |
12/7/15 |
3,710,000 |
a |
3,710,000 |
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Douglas County Development Authority, |
0.05 |
12/7/15 |
1,740,000 |
a |
1,740,000 |
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Macon-Bibb County Industrial Authority, |
0.12 |
12/7/15 |
760,000 |
a |
760,000 |
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6,945,000 |
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Illinois - 5.2% |
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Chicago Heights, |
0.11 |
12/7/15 |
500,000 |
a |
500,000 |
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DuPage County, |
0.02 |
12/7/15 |
5,000,000 |
a |
5,000,000 |
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Illinois Educational Facilities Authority, |
0.03 |
12/7/15 |
2,600,000 |
a |
2,600,000 |
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Illinois Finance Authority, |
0.13 |
12/7/15 |
1,765,000 |
a |
1,765,000 |
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Illinois Finance Authority, |
0.01 |
12/1/15 |
1,700,000 |
a |
1,700,000 |
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Naperville, |
3.00 |
12/1/15 |
525,000 |
525,000 |
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12,090,000 |
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Indiana - .9% |
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Huntington, |
0.12 |
12/7/15 |
800,000 |
a |
800,000 |
8
Short-Term Investments - 99.8% (continued) |
Coupon |
Maturity |
Principal |
Value ($) |
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Indiana - .9% (continued) |
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Indiana Health Facility Financing Authority, |
0.12 |
12/7/15 |
725,000 |
a |
725,000 |
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Indianapolis Local Public Improvement Bond Bank, |
5.00 |
1/15/16 |
650,000 |
653,671 |
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2,178,671 |
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Iowa - 1.2% |
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Iowa Finance Authority, |
0.02 |
12/7/15 |
1,000,000 |
a |
1,000,000 |
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Iowa Higher Education Loan Authority, |
5.00 |
12/1/15 |
650,000 |
650,000 |
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Woodbury County, |
0.12 |
12/7/15 |
1,250,000 |
a |
1,250,000 |
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2,900,000 |
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Kentucky - .8% |
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Kentucky Infrastructure Authority, |
2.00 |
2/1/16 |
500,000 |
501,462 |
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Lexington-Fayette Urban County Government, |
0.05 |
12/7/15 |
1,345,000 |
a |
1,345,000 |
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1,846,462 |
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Maine - .3% |
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South Portland, |
4.00 |
7/15/16 |
625,000 |
639,126 |
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Maryland - 3.7% |
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Maryland Department of Transportation, |
5.00 |
2/15/16 |
575,000 |
580,622 |
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Maryland Economic Development Corporation, |
0.13 |
12/7/15 |
5,310,000 |
a |
5,310,000 |
|||||
Maryland Economic Development Corporation, |
0.07 |
12/7/15 |
2,860,000 |
a |
2,860,000 |
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8,750,622 |
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Massachusetts - .2% |
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Attleboro, |
2.00 |
3/15/16 |
500,000 |
502,437 |
9
STATEMENT OF INVESTMENTS (continued)
Short-Term Investments - 99.8% (continued) |
Coupon |
Maturity |
Principal |
Value ($) |
||||||
Minnesota - 5.6% |
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Cohasset, |
0.06 |
12/7/15 |
3,630,000 |
a |
3,630,000 |
|||||
Minneapolis, |
0.02 |
12/7/15 |
1,835,000 |
a |
1,835,000 |
|||||
Minneapolis, |
0.12 |
12/7/15 |
1,215,000 |
a |
1,215,000 |
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Minnesota Rural Water Finance Authority, |
1.00 |
12/1/15 |
3,250,000 |
3,250,000 |
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Plymouth, |
0.02 |
12/7/15 |
1,680,000 |
a |
1,680,000 |
|||||
Saint Paul Housing and Redevelopment Authority, |
0.14 |
12/7/15 |
1,600,000 |
a |
1,600,000 |
|||||
13,210,000 |
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Mississippi - 2.9% |
||||||||||
Mississippi Business Finance Corporation, |
0.01 |
12/1/15 |
6,850,000 |
a |
6,850,000 |
|||||
Missouri - 5.4% |
||||||||||
Columbia School District, |
2.00 |
3/1/16 |
2,250,000 |
2,259,494 |
||||||
Kirkwood Industrial Development Authority, |
0.15 |
12/7/15 |
1,640,000 |
a |
1,640,000 |
|||||
Missouri Environmental Improvement and Energy Resources Authority, |
2.00 |
1/1/16 |
1,210,000 |
1,211,893 |
||||||
Saint Louis Industrial Development Authority, |
0.03 |
12/7/15 |
4,635,000 |
a |
4,635,000 |
|||||
Saint Louis Parking Commission Finance Corporation, |
0.12 |
12/7/15 |
1,380,000 |
a |
1,380,000 |
|||||
Springfield Industrial Development Authority, |
0.12 |
12/7/15 |
270,000 |
a |
270,000 |
10
Short-Term Investments - 99.8% (continued) |
Coupon |
Maturity |
Principal |
Value ($) |
||||||
Missouri - 5.4% (continued) |
||||||||||
Springfield Industrial Development Authority, |
0.05 |
12/7/15 |
1,260,000 |
a |
1,260,000 |
|||||
12,656,387 |
||||||||||
New Jersey - 11.5% |
||||||||||
Brigantine, |
1.00 |
12/9/15 |
3,000,000 |
3,000,301 |
||||||
Burlington County Bridge Commission, |
1.50 |
5/17/16 |
2,000,000 |
2,011,243 |
||||||
Guttenberg, |
1.00 |
3/18/16 |
5,000,000 |
5,005,875 |
||||||
Little Egg Harbor Township, |
1.00 |
2/3/16 |
4,264,306 |
4,267,274 |
||||||
Long Beach Township, |
1.50 |
3/22/16 |
2,000,000 |
2,005,833 |
||||||
Newton, |
1.50 |
8/26/16 |
3,000,000 |
3,019,501 |
||||||
Pennsauken Township, |
1.00 |
6/23/16 |
2,000,000 |
2,003,887 |
||||||
Ringwood Borough, |
1.00 |
4/14/16 |
2,630,425 |
2,636,217 |
||||||
Wood-Ridge Borough, |
1.00 |
2/11/16 |
3,000,000 |
3,003,356 |
||||||
26,953,487 |
||||||||||
New Mexico - .2% |
||||||||||
New Mexico Finance Authority, |
4.00 |
6/15/16 |
530,000 |
540,381 |
||||||
New York - 1.7% |
||||||||||
New York City Industrial Development Agency, |
0.06 |
12/7/15 |
4,000,000 |
a |
4,000,000 |
|||||
North Carolina - 1.0% |
||||||||||
North Carolina Capital Facilities Finance Agency, |
0.06 |
12/3/15 |
2,237,000 |
2,237,000 |
||||||
Ohio - 1.9% |
||||||||||
Hamilton County, |
0.04 |
12/7/15 |
1,775,000 |
a |
1,775,000 |
|||||
Stark County Port Authority, |
0.10 |
12/7/15 |
735,000 |
a |
735,000 |
|||||
Union Township, |
1.50 |
9/8/16 |
2,000,000 |
2,014,556 |
||||||
4,524,556 |
11
STATEMENT OF INVESTMENTS (continued)
Short-Term Investments - 99.8% (continued) |
Coupon |
Maturity |
Principal |
Value ($) |
||||||
Oklahoma - .9% |
||||||||||
Oklahoma Turnpike Authority, |
0.03 |
12/7/15 |
2,000,000 |
a,b,c |
2,000,000 |
|||||
Oregon - .6% |
||||||||||
Oregon, |
0.01 |
12/1/15 |
1,400,000 |
a |
1,400,000 |
|||||
Pennsylvania - 4.6% |
||||||||||
Delaware County Industrial Development Authority, |
0.01 |
12/1/15 |
3,000,000 |
a |
3,000,000 |
|||||
Montgomery County Industrial Development Authority, |
0.20 |
12/7/15 |
360,000 |
a |
360,000 |
|||||
Northampton County Industrial Development Authority, |
0.15 |
12/7/15 |
650,000 |
a |
650,000 |
|||||
Pennsylvania Economic Development Financing Authority, |
0.10 |
12/7/15 |
900,000 |
a |
900,000 |
|||||
Pennsylvania Higher Educational Facilities Authority, |
0.03 |
12/7/15 |
1,325,000 |
a |
1,325,000 |
|||||
Philadelphia Authority for Industrial Development, |
0.11 |
12/7/15 |
1,600,000 |
a |
1,600,000 |
|||||
Upper Dauphin Industrial Development Authority, |
0.13 |
12/7/15 |
500,000 |
a |
500,000 |
|||||
York Redevelopment Authority, |
0.11 |
12/7/15 |
2,460,000 |
a |
2,460,000 |
|||||
10,795,000 |
||||||||||
South Carolina - 3.0% |
||||||||||
South Carolina Jobs-Economic Development Authority, |
0.07 |
12/7/15 |
4,170,000 |
a |
4,170,000 |
12
Short-Term Investments - 99.8% (continued) |
Coupon |
Maturity |
Principal |
Value ($) |
||||||
South Carolina - 3.0% (continued) |
||||||||||
South Carolina Jobs-Economic Development Authority, |
0.05 |
12/7/15 |
2,805,000 |
a |
2,805,000 |
|||||
6,975,000 |
||||||||||
Tennessee - .6% |
||||||||||
Cleveland Health and Educational Facilities Board, |
0.04 |
12/7/15 |
1,500,000 |
a |
1,500,000 |
|||||
Texas - 14.1% |
||||||||||
Atascosa County Industrial Development Corporation, |
0.03 |
12/7/15 |
11,700,000 |
a |
11,700,000 |
|||||
Brazos County Health Facilities Development Corporation, |
0.12 |
12/7/15 |
6,165,000 |
a |
6,165,000 |
|||||
Carrollton-Farmers Branch Independent School District, |
2.00 |
2/15/16 |
430,000 |
431,208 |
||||||
Garland Independent School District, |
3.00 |
2/15/16 |
250,000 |
251,390 |
||||||
Hays Consolidated Independent School District, |
3.00 |
2/15/16 |
400,000 |
402,255 |
||||||
Humble Independent School District, |
3.63 |
2/15/16 |
250,000 |
251,736 |
||||||
Lancaster Independent School District, |
1.50 |
2/15/16 |
575,000 |
576,431 |
||||||
Lovejoy Independent School District, |
1.50 |
2/15/16 |
585,000 |
586,396 |
||||||
Mission Economic Development Corporation, |
0.06 |
12/7/15 |
1,500,000 |
a |
1,500,000 |
|||||
Plano Independent School District, |
5.00 |
2/15/16 |
165,000 |
166,592 |
||||||
Port Arthur Navigation District Industrial Development Corporation, |
0.01 |
12/1/15 |
6,635,000 |
a |
6,635,000 |
|||||
Richardson Independent School District, |
2.00 |
2/15/16 |
535,000 |
536,930 |
13
STATEMENT OF INVESTMENTS (continued)
Short-Term Investments - 99.8% (continued) |
Coupon |
Maturity |
Principal |
Value ($) |
||||||
Texas - 14.1% (continued) |
||||||||||
Rockwall Independent School District, |
2.00 |
2/15/16 |
520,000 |
521,875 |
||||||
Splendora Higher Education Facilities Corporation, |
0.15 |
12/7/15 |
1,900,000 |
a |
1,900,000 |
|||||
Texas Public Finance Authority, |
4.00 |
1/1/16 |
235,000 |
235,774 |
||||||
Texas State University System Board of Regents, |
5.00 |
3/15/16 |
700,000 |
709,602 |
||||||
Texas Water Development Board, |
5.00 |
7/15/16 |
450,000 |
463,061 |
||||||
33,033,250 |
||||||||||
Utah - .9% |
||||||||||
Ogden City Redevelopment Agency, |
0.12 |
12/7/15 |
575,000 |
a |
575,000 |
|||||
Salt Lake County, |
5.00 |
12/15/15 |
1,000,000 |
1,001,860 |
||||||
Salt Lake County, |
0.17 |
12/7/15 |
500,000 |
a |
500,000 |
|||||
2,076,860 |
||||||||||
Virginia - .7% |
||||||||||
Greene County Economic Development Authority, |
0.04 |
12/7/15 |
500,000 |
a |
500,000 |
|||||
Norfolk Redevelopment and Housing Authority, |
0.06 |
12/7/15 |
705,000 |
a |
705,000 |
|||||
Virginia College Building Authority, |
5.00 |
2/1/16 |
550,000 |
554,370 |
||||||
1,759,370 |
||||||||||
Washington - 1.3% |
||||||||||
Washington Housing Finance Commission, |
0.15 |
12/7/15 |
1,250,000 |
a |
1,250,000 |
|||||
Washington Housing Finance Commission, |
0.04 |
12/7/15 |
1,085,000 |
a |
1,085,000 |
14
Short-Term Investments - 99.8% (continued) |
Coupon |
Maturity |
Principal |
Value ($) |
||||||
Washington - 1.3% (continued) |
||||||||||
Washington Housing Finance Commission, |
0.12 |
12/7/15 |
745,000 |
a |
745,000 |
|||||
3,080,000 |
||||||||||
Wisconsin - 4.4% |
||||||||||
Racine, |
2.00 |
6/1/16 |
825,000 |
831,361 |
||||||
Wisconsin Health and Educational Facilities Authority, |
0.02 |
12/7/15 |
2,000,000 |
a |
2,000,000 |
|||||
Wisconsin Health and Educational Facilities Authority, |
0.11 |
12/7/15 |
2,315,000 |
a |
2,315,000 |
|||||
Wisconsin Health and Educational Facilities Authority, |
0.11 |
12/7/15 |
920,000 |
a |
920,000 |
|||||
Wisconsin Health and Educational Facilities Authority, |
0.04 |
12/7/15 |
1,320,000 |
a |
1,320,000 |
|||||
Wisconsin Health and Educational Facilities Authority, |
0.15 |
4/5/16 |
3,000,000 |
3,000,000 |
||||||
10,386,361 |
||||||||||
Total Investments (cost $234,155,039) |
99.8% |
234,155,039 |
||||||||
Cash and Receivables (Net) |
.2% |
582,244 |
||||||||
Net Assets |
100.0% |
234,737,283 |
a Variable rate demand note - rate shown is the interest rate in effect at November 30, 2015. Maturity date represents the next demand date, or the ultimate maturity date if earlier.
b Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2015, these securities amounted to $2,000,000 or 0.9% of net assets.
c The fund does not directly own the municipal security indicated; the fund owns an interest in a special purpose entity that, in turn, owns the underlying municipal security. The special purpose entity permits the fund to own interests in underlying assets, but in a manner structured to provide certain advantages not inherent in the underlying bonds (e.g., enhanced liquidity, yields linked to short-term rates).
15
STATEMENT OF INVESTMENTS (continued)
Portfolio Summary (Unaudited) † |
Value (%) |
Industrial |
19.4 |
Education |
16.1 |
City |
12.6 |
Housing |
11.8 |
Health Care |
10.2 |
Utility-Electric |
6.5 |
Utility-Water & Sewer |
4.6 |
State/Territory |
2.8 |
Special Tax |
2.6 |
County |
2.4 |
Transportation Services |
1.5 |
Resource Recovery |
.6 |
Pollution Control |
.5 |
Other |
8.2 |
99.8 |
† Based on net assets.
See notes to financial statements.
16
Summary of Abbreviations | |||
ABAG |
Association of Bay Area |
ACA |
American Capital Access |
AGC |
ACE Guaranty Corporation |
AGIC |
Asset Guaranty Insurance Company |
AMBAC |
American Municipal Bond |
ARRN |
Adjustable Rate |
BAN |
Bond Anticipation Notes |
BPA |
Bond Purchase Agreement |
CIFG |
CDC Ixis Financial Guaranty |
COP |
Certificate of Participation |
CP |
Commercial Paper |
DRIVERS |
Derivative Inverse |
EDR |
Economic Development |
EIR |
Environmental Improvement |
FGIC |
Financial Guaranty |
FHA |
Federal Housing Administration |
FHLB |
Federal Home |
FHLMC |
Federal Home Loan Mortgage |
FNMA |
Federal National |
GAN |
Grant Anticipation Notes |
GIC |
Guaranteed Investment |
GNMA |
Government National Mortgage |
GO |
General Obligation |
HR |
Hospital Revenue |
IDB |
Industrial Development Board |
IDC |
Industrial Development Corporation |
IDR |
Industrial Development |
LIFERS |
Long Inverse Floating |
LOC |
Letter of Credit |
LOR |
Limited Obligation Revenue |
LR |
Lease Revenue |
MERLOTS |
Municipal Exempt Receipts |
MFHR |
Multi-Family Housing Revenue |
MFMR |
Multi-Family Mortgage Revenue |
PCR |
Pollution Control Revenue |
PILOT |
Payment in Lieu of Taxes |
P-FLOATS |
Puttable Floating Option |
PUTTERS |
Puttable Tax-Exempt Receipts |
RAC |
Revenue Anticipation Certificates |
RAN |
Revenue Anticipation Notes |
RAW |
Revenue Anticipation Warrants |
RIB |
Residual Interest Bonds |
ROCS |
Reset Options Certificates |
RRR |
Resources Recovery Revenue |
SAAN |
State Aid Anticipation Notes |
SBPA |
Standby Bond Purchase Agreement |
SFHR |
Single Family Housing Revenue |
SFMR |
Single Family Mortgage Revenue |
SONYMA |
State of New York |
SPEARS |
Short Puttable Exempt |
SWDR |
Solid Waste Disposal Revenue |
TAN |
Tax Anticipation Notes |
TAW |
Tax Anticipation Warrants |
TRAN |
Tax and Revenue Anticipation Notes |
XLCA |
XL Capital Assurance |
See notes to financial statements.
17
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2015
|
|
|
|
|
|
|
|
|
|
Cost |
|
Value |
|
Assets ($): |
|
|
|
| ||
Investments in securities—See Statement of Investments |
|
234,155,039 |
|
234,155,039 |
| |
Cash |
|
|
|
|
1,500,319 |
|
Interest receivable |
|
|
|
|
377,284 |
|
|
|
|
|
|
236,032,642 |
|
Liabilities ($): |
|
|
|
| ||
Due to The Dreyfus Corporation and affiliates—Note 2(c) |
|
|
|
|
24,370 |
|
Payable for investment securities purchased |
|
|
|
|
1,262,569 |
|
Payable for shares of Common Stock redeemed |
|
|
|
|
8,420 |
|
|
|
|
|
|
1,295,359 |
|
Net Assets ($) |
|
|
234,737,283 |
| ||
Composition of Net Assets ($): |
|
|
|
| ||
Paid-in capital |
|
|
|
|
234,737,283 |
|
Net Assets ($) |
|
|
234,737,283 |
|
Net Asset Value Per Share |
Class A |
Class B |
Dreyfus Class |
Class R |
|
Net Assets ($) |
19,027,445 |
179,894,859 |
8,804,326 |
27,010,653 |
|
Shares Outstanding |
19,027,094 |
179,897,199 |
8,804,202 |
27,010,501 |
|
Net Asset Value Per Share ($) |
1.00 |
1.00 |
1.00 |
1.00 |
|
See notes to financial statements.
18
STATEMENT OF OPERATIONS
|
|
|
|
|
One |
|
|
|
|
|
|
Month Ended |
Year Ended |
|
|
|
|
|
November 30, 2015a |
October 31, 2015 |
Investment Income ($): |
|
|
|
| ||
Interest Income |
|
|
27,060 |
367,858 | ||
Expenses: |
|
|
|
|||
Management fee—Note 2(a) |
|
|
94,558 |
1,199,421 | ||
Distribution fees—Note 2(b) |
|
|
39,505 |
475,853 | ||
Shareholder servicing costs—Note 2(c) |
|
|
36,538 |
437,199 | ||
Directors’ fees—Note 2(a,d) |
|
|
1,427 |
16,453 | ||
Total Expenses |
|
|
172,028 |
2,128,926 | ||
Less—reduction in expenses due to undertaking—Note 2(a) |
|
|
(143,926) |
(1,744,697) | ||
Less—Directors’ fees reimbursed by Dreyfus—Note 2(a) |
|
|
(1,427) |
(16,453) | ||
Net Expenses |
|
|
26,675 |
367,776 | ||
Investment Income—Net |
|
|
385 |
82 | ||
Realized Gain (Loss) on Investments—Note 1(b) ($) |
|
|
- |
18,736 | ||
Net Increase in Net Assets Resulting from Operations |
|
|
385 |
18,818 |
a The fund has changed its fiscal year end from October 31, to November 30.
See notes to financial statements.
19
STATEMENT OF CHANGES IN NET ASSETS
|
|
|
|
||||||||||
One Month Ended |
Year Ended October 31, | ||||||||||||
|
|
|
|
November 30, 2015 |
a |
2015 |
|
2014 |
| ||||
Operations ($): |
|
|
|
|
|
|
|
| |||||
Investment income—net |
|
|
385 |
|
82 |
|
92 |
| |||||
Net realized gain (loss) on investments |
|
- |
|
18,736 |
|
17,339 |
| ||||||
Net Increase (Decrease) in Net Assets |
385 |
|
18,818 |
|
17,431 |
| |||||||
Dividends to Shareholders from ($): |
|
|
|
|
|
|
|
| |||||
Investment income—net: |
|
|
|
|
|
|
|
| |||||
Class A |
|
|
(1,488) |
|
(1,387) |
|
(2,384) |
| |||||
Class B |
|
|
(14,725) |
|
(12,638) |
|
(19,798) |
| |||||
Dreyfus Class |
|
|
(711) |
|
(722) |
|
(1,660) |
| |||||
Class R |
|
|
(2,197) |
|
(2,674) |
|
(6,464) |
| |||||
Total Dividends |
|
|
(19,121) |
|
(17,421) |
|
(30,306) |
| |||||
Capital Stock Transactions ($1.00 per share): |
|
|
|
|
|
|
| ||||||
Net proceeds from shares sold: |
|
|
|
|
|
|
|
| |||||
Class A |
|
|
2,710,284 |
|
25,267,613 |
|
70,503,067 |
| |||||
Class B |
|
|
30,000,220 |
|
426,624,351 |
|
482,346,837 |
| |||||
Dreyfus Class |
|
|
118,781 |
|
35,377,266 |
|
10,021,816 |
| |||||
Class R |
|
|
14,478,755 |
|
283,027,454 |
|
232,479,657 |
| |||||
Dividends reinvested: |
|
|
|
|
|
|
|
| |||||
Class A |
|
|
1,488 |
|
1,382 |
|
2,367 |
| |||||
Class B |
|
|
14,725 |
|
12,625 |
|
19,661 |
| |||||
Dreyfus Class |
|
|
710 |
|
707 |
|
1,653 |
| |||||
Class R |
|
|
449 |
|
633 |
|
442 |
| |||||
Cost of shares redeemed: |
|
|
|
|
|
|
|
| |||||
Class A |
|
|
(765,458) |
|
(25,845,327) |
|
(76,637,703) |
| |||||
Class B |
|
|
(23,488,323) |
|
(434,441,661) |
|
(482,958,878) |
| |||||
Dreyfus Class |
|
|
(319,465) |
|
(37,968,937) |
|
(13,146,714) |
| |||||
Class R |
|
|
(8,734,228) |
|
(292,502,461) |
|
(256,882,931) |
| |||||
Increase (Decrease) in Net Assets |
14,017,938 |
|
(20,446,355) |
|
(34,250,726) |
| |||||||
Total Increase (Decrease) in Net Assets |
13,999,202 |
|
(20,444,958) |
|
(34,263,601) |
| |||||||
Net Assets ($): |
|
|
|
|
|
|
|
| |||||
Beginning of Period |
|
|
220,738,081 |
|
241,183,039 |
|
275,446,640 |
| |||||
End of Period |
|
|
234,737,283 |
|
220,738,081 |
|
241,183,039 |
| |||||
a The fund has changed its fiscal year end from October 31 to November 30.
See notes to financial statements.
20
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the fiscal periods indicated. All information reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund’s financial statements.
One Month Ended November 30, 2015a |
||||||
Year Ended October 31, | ||||||
Class A Shares |
2015 |
2014 |
2013 |
2012 |
2011 | |
Per Share Data ($): |
||||||
Net asset value, beginning of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Investment Operations: |
||||||
Investment income—netb |
.000 |
.000 |
.000 |
.000 |
.000 |
.000 |
Distributions: |
||||||
Dividends from |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
Net asset value, end of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Total Return (%) |
.01c |
.00d |
.01 |
.00d |
.00d |
.00d |
Ratios/Supplemental Data (%): |
||||||
Ratio of total expenses |
.71e |
.71 |
.71 |
.71 |
.71 |
.71 |
Ratio of net expenses |
.14e |
.15 |
.16 |
.23 |
.28 |
.38 |
Ratio of net investment income |
.00e |
.00 |
.00 |
.00 |
.00 |
.00 |
Net Assets, end of period ($ x 1,000) |
19,027 |
17,083 |
17,659 |
23,792 |
27,625 |
30,764 |
a The fund has changed its fiscal year end from October 31 to November 30.
b Amount represents less than $.001 per share.
c Not annualized.
d Amount represents less than .01%.
e Annualized.
See notes to financial statements.
21
FINANCIAL HIGHLIGHTS (continued)
One Month Ended November 30, 2015a |
||||||
Year Ended October 31, | ||||||
Class B Shares |
2015 |
2014 |
2013 |
2012 |
2011 | |
Per Share Data ($): |
||||||
Net asset value, beginning of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Investment Operations: |
||||||
Investment income—netb |
.000 |
.000 |
.000 |
.000 |
.000 |
.000 |
Distributions: |
||||||
Dividends from |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
Net asset value, end of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Total Return (%) |
.01c |
.00d |
.01 |
.00d |
.00d |
.00d |
Ratios/Supplemental Data (%): |
||||||
Ratio of total expenses |
1.01e |
1.01 |
1.01 |
1.01 |
1.01 |
1.01 |
Ratio of net expenses |
.14e |
.15 |
.16 |
.23 |
.29 |
.37 |
Ratio of net investment income |
.00e |
.00 |
.00 |
.00 |
.00 |
.00 |
Net Assets, end of period ($ x 1,000) |
179,895 |
173,383 |
181,187 |
181,787 |
248,951 |
229,126 |
a The fund has changed its fiscal year end from October 31 to November 30.
b Amount represents less than $.001 per share.
c Not annualized.
d Amount represents less than .01%.
e Annualized.
See notes to financial statements.
22
One Month Ended November 30, 2015a |
||||||
Year Ended October 31, | ||||||
Dreyfus Class Shares |
2015 |
2014 |
2013 |
2012 |
2011 | |
Per Share Data ($): |
||||||
Net asset value, beginning of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Investment Operations: |
||||||
Investment income—netb |
.000 |
.000 |
.000 |
.000 |
.000 |
.000 |
Distributions: |
||||||
Dividends from |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
Net asset value, end of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Total Return (%) |
.01c |
.00d |
.01 |
.00d |
.00d |
.00d |
Ratios/Supplemental Data (%): |
||||||
Ratio of total expenses |
.51e |
.51 |
.51 |
.51 |
.51 |
.51 |
Ratio of net expenses |
.14e |
.16 |
.17 |
.23 |
.28 |
.38 |
Ratio of net investment income |
.00e |
.00 |
.00 |
.00 |
.00 |
.00 |
Net Assets, end of period ($ x 1,000) |
8,804 |
9,005 |
11,596 |
14,720 |
14,017 |
26,003 |
a The fund has changed its fiscal year end from October 31 to November 30.
b Amount represents less than $.001 per share.
c Not annualized.
d Amount represents less than .01%.
e Annualized.
See notes to financial statements.
23
FINANCIAL HIGHLIGHTS (continued)
One Month Ended November 30, 2015a |
||||||
Year Ended October 31, | ||||||
Class R Shares |
2015 |
2014 |
2013 |
2012 |
2011 | |
Per Share Data ($): |
||||||
Net asset value, beginning of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Investment Operations: |
||||||
Investment income—netb |
.000 |
.000 |
.000 |
.000 |
.000 |
.000 |
Distributions: |
||||||
Dividends from |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
Net asset value, end of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Total Return (%) |
.01c |
.00d |
.01 |
.00d |
.00d |
.00d |
Ratios/Supplemental Data (%): |
||||||
Ratio of total expenses |
.51e |
.51 |
.51 |
.51 |
.51 |
.51 |
Ratio of net expenses |
.14e |
.15 |
.16 |
.24 |
.29 |
.38 |
Ratio of net investment income |
.00e |
.00 |
.00 |
.00 |
.00 |
.00 |
Net Assets, end of period ($ x 1,000) |
27,011 |
21,267 |
30,742 |
55,149 |
77,098 |
48,390 |
a The fund has changed its fiscal year end from October 31 to November 30.
b Amount represents less than $.001 per share.
c Not annualized.
d Amount represents less than .01%.
e Annualized.
See notes to financial statements.
24
NOTES TO FINANCIAL STATEMENTS
NOTE 1—Significant Accounting Policies:
General AMT-Free Municipal Money Market Fund (the “fund”) is a separate diversified series of The Dreyfus/Laurel Funds, Inc. (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering ten series, including the fund. The fund’s investment objective is to seek a high level of current income, consistent with stability of principal, that is exempt from federal income taxes. 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.
The Company’s Board of Directors (the “Board”) approved, effective November 1, 2015, a change in the fund’s fiscal year end from October 31 to November 30.
MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund’s shares, which are sold without a sales charge. The fund is authorized to issue 1 billion shares of $.001 par value Common Stock in each of the following classes of shares: Class A, Class B, Dreyfus Class and Class R. Class A and Class B shares are sold primarily to clients of financial institutions that have entered into selling agreements with the Distributor, and bear a Distribution Plan fee. Class B shares also bear a Shareholder Services Plan fee. Dreyfus Class are sold to any investor and bear no Distribution Plan or Shareholder Services Plan fees. Class R shares are sold primarily to bank trust departments and other financial service providers (including The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, and its affiliates), acting on behalf of customers having a qualified trust or an investment account or relationship at such institution, and bear no Distribution or Shareholder Services Plan fees. Other differences between the classes include the services offered to and the expenses borne by each class, 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.
It is the fund’s policy to maintain a continuous net asset value per share of $1.00; the fund has adopted certain investment, portfolio valuation and dividend and distribution policies to enable it to do so. There is no assurance, however, that the fund will be able to maintain a stable net asset value per share of $1.00.
The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to
25
NOTES TO FINANCIAL STATEMENTS (continued)
that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued at amortized cost in accordance with Rule 2a-7 under the Act. If amortized cost is determined not to approximate market value, the fair value of the portfolio securities will be determined by procedures established by and under the general supervision of the Board.
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).
26
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, money market securities are valued using amortized cost, in accordance with rules under the Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected within Level 2 of the fair value hierarchy.
The following is a summary of the inputs used as of November 30, 2015 in valuing the fund’s investments:
Valuation Inputs |
Short-Term Investments ($)† |
Level 1 - Unadjusted Quoted Prices |
- |
Level 2 - Other Significant Observable Inputs |
234,155,039 |
Level 3 - Significant Unobservable Inputs |
- |
Total |
234,155,039 |
† See Statement of Investments for additional detailed categorizations. |
At November 30, 2015, there were no transfers between levels of the fair value hierarchy.
(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and is recognized on the accrual basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Cost of investments represents amortized cost.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, 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.
27
NOTES TO FINANCIAL STATEMENTS (continued)
As of and during the period ended November 30, 2015, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended November 30, 2015, the fund did not incur any interest or penalties.
The tax period ended November 30, 2015 and each tax year in the four-year period ended October 31, 2015 remains subject to examination by the Internal Revenue Service and state taxing authorities.
At November 30, 2015, the components of accumulated earnings on a tax basis were substantially the same as for financial reporting purposes.
The tax character of distributions paid to shareholders during the fiscal periods ended November 30, 2015, October 31, 2015 and October 31, 2014 were as follows: tax-exempt income $385, $82 and $92, ordinary income $18,736, $0 and $30,214, and long-term capital gains $0, $17,339 and $0, respectively.
During the period ended November 30, 2015, as a result of permanent book to tax differences, primarily due to the tax treatment for dividend reclassification, the fund increased accumulated undistributed investment income-net by $18,736 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.
At November 30, 2015, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).
NOTE 2—Investment Management Fee and Other Transactions with Affiliates:
(a) Pursuant to an investment management agreement with Dreyfus, Dreyfus provides or arranges for one or more third parties and/or affiliates to provide investment advisory, administrative, custody, fund accounting and transfer agency services to the fund. Dreyfus also directs the investments of the fund in accordance with its investment objective, policies and limitations. For these services, the fund is contractually obligated to pay Dreyfus a fee, calculated daily and paid monthly, at an annual rate of .50% of the value of the fund’s average daily net assets. Out of its fee, Dreyfus pays all of the expenses of the fund except brokerage fees, taxes, Distribution Plan fees, Shareholder Services Plan fees and expenses, fees and expenses of non-interested Directors (including counsel fees) and extraordinary expenses. In addition, Dreyfus is required to reduce its fee in an amount equal to the fund’s allocable portion of fees and
28
expenses of the non-interested Directors (including counsel fees). During the periods ended November 30, 2015 and October 31, 2015, fees reimbursed by Dreyfus amounted to $1,427 and $16,453, respectively.
Dreyfus has undertaken to waive receipt of the management fee and/or reimburse operating expenses in order to facilitate a daily yield at or above a certain level which may change from time to time. This undertaking is voluntary and not contractual, and may be terminated at any time. The reduction in expenses, pursuant to the undertaking, amounted to $143,926 and $1,744,697, respectively, during the periods ended November 30, 2015 and October 31, 2015.
(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Class A shares and Class B shares may pay annually up to .25% of the value of their average daily net assets (Class A shares are currently limited by the Board to .20%) attributable to Class A shares and Class B shares to compensate the Distributor for shareholder servicing activities and activities primarily intended to result in the sale of Class A shares and Class B shares. During the period ended November 30, 2015, Class A shares and Class B shares were charged $2,967 and $36,538, respectively and during the period ended October 31, 2015, Class A shares and Class B shares were charged $38,654 and $437,199, respectively, pursuant to the Distribution Plan.
(c) Under the Shareholder Services Plan subject to Rule 12b-1 under the Act, pursuant to which the fund pays the Distributor for the provision of certain services to the holders of its Class B shares a fee at an annual rate of .25% of the value of the fund’s average daily net assets for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of such shareholder accounts. Under the Shareholder Services Plan, the Distributor may enter into Shareholder Services Agreements (the “Agreements”) with Service Agents and make payments to Service Agents with respect to these services. During the periods ended November 30, 2015 and October 31, 2015, Class B shares were charged $36,538 and $437,199, respectively, pursuant to the Shareholder Services Plan.
The Company and the Distributor may suspend or reduce payments under the Shareholder Services Plan at any time, and payments are subject to the continuation of the Shareholder Services Plan and the Agreements described above. From time to time, the Service Agents, the Distributor and the Company may agree to voluntarily reduce the maximum fees payable under the Shareholder Services Plan.
29
NOTES TO FINANCIAL STATEMENTS (continued)
Under its terms, the Distribution Plan and Shareholder Services Plan shall remain in effect from year to year, provided such continuance is approved annually by a vote of a majority of those Directors who are not “interested persons” of the Company and who have no direct or indirect financial interest in the operation of or in any agreement related to the Distribution Plan or Shareholder Services Plan.
The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $93,423 and Distribution Plan fees $39,506 and Shareholder Services Plan fees $36,538, which are offset against an expense reimbursement currently in effect in the amount of $145,097.
(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTE 3—Securities Transactions:
The fund is permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the fund from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment adviser), common Directors and/or common officers, complies with Rule 17a-7 under the Act. During the period ended November 30, 2015, the fund engaged in purchases and sales of securities pursuant to Rule 17a-7 under the Act amounting to $4,635,000 and $2,000,000, respectively.
NOTE 4—Regulatory Developments:
On July 23, 2014, the SEC adopted amendments to the rules that govern the operations of money market mutual funds. The degree to which a fund will be impacted by the amendments will depend upon the type of fund and the type of investors (retail or institutional). The amendments have staggered compliance dates, but funds must be in compliance with all amendments by October 14, 2016. At this time, management continues to evaluate the implications of the amendments and their impact to the fund’s operations, financial statements and accompanying notes.
30
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
The Board of Directors and Shareholders of
The Dreyfus/Laurel Funds, Inc.
We have audited the accompanying statement of assets and liabilities of General AMT-Free Municipal Money Market Fund (the “Fund”), a series of The Dreyfus/Laurel Funds, Inc., including the statement of investments, as of November 30, 2015, the related statements of operations for the one-month period ended November 30, 2015 and for the year ended October 31, 2015, the statements of changes in net assets for one-month period ended November 30, 2015 and for each of the years in the two-year period ended October 31, 2015, and the financial highlights for the one-month period ended November 30, 2015 and for each of the years in the five-year period ended October 31, 2015. 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of November 30, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of General AMT-Free Municipal Money Market Fund as of November 30, 2015, the results of its operations for the one-month period ended November 30, 2015 and for the year ended October 31, 2015, the changes in its net assets for the one-month period ended November 30, 2015 and for each of the years in the two-year period ended October 31, 2015, and the financial highlights for the one-month period ended November 30, 2015 and for each of the years in the five-year period ended October 31, 2015, in conformity with U.S. generally accepted accounting principles.
New York, New York
January 28, 2016
31
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with federal tax law, the fund hereby reports all the dividends paid from investment income-net during its fiscal year ended November 30, 2015 as “exempt-interest dividends” (not generally subject to regular federal income tax), except $18,736 that is being reported as an ordinary income distribution for reporting purposes. Where required by federal tax law rules, shareholders will receive notification of their portion of the fund’s exempt-interest dividends paid for the 2015 calendar year on Form 1099-DIV, which will be mailed in early 2016.
32
BOARD MEMBERS INFORMATION (Unaudited)
INDEPENDENT BOARD MEMBERS
Chairman of the Board (1999)
Principal Occupation During Past 5 Years:
· Corporate Director and Trustee (1995-present)
Other Public Company Board Memberships During Past 5 Years:
· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies, Director (1997-present)
No. of Portfolios for which Board Member Serves: 140
———————
Francine J. Bovich (64)
Board Member (2012)
Principal Occupation During Past 5 Years:
· Trustee, The Bradley Trusts, private trust funds (2011-present)
· Managing Director, Morgan Stanley Investment Management (1993-2010)
Other Public Company Board Memberships During Past 5 Years:
· Annaly Capital Management, Inc., Board Member (May 2014-present)
No. of Portfolios for which Board Member Serves: 79
———————
Kenneth A. Himmel (69)
Board Member (1994)
Principal Occupation During Past 5 Years:
· Managing Partner, Gulf Related, an international real estate development company (2010-present)
· President and CEO, Related Urban Development, a real estate development company (1996-present)
· President and CEO, Himmel & Company, a real estate development company (1980-present)
· CEO, American Food Management, a restaurant company (1983-present)
No. of Portfolios for which Board Member Serves: 29
———————
33
BOARD MEMBERS INFORMATION (Unaudited) (continued)
INDEPENDENT BOARD MEMBERS (continued)
Stephen J. Lockwood (68)
Board Member (1994)
Principal Occupation During Past 5 Years:
· Chairman of the Board, Stephen J. Lockwood and Company LLC, a real estate investment company (2000-present)
No. of Portfolios for which Board Member Serves: 29
———————
Roslyn M. Watson (66)
Board Member (1994)
Principal Occupation During Past 5 Years:
· Principal, Watson Ventures, Inc., a real estate investment company (1993-present)
No. of Portfolios for which Board Member Serves: 65
———————
Benaree Pratt Wiley (69)
Board Member (1998)
Principal Occupation During Past 5 Years:
· Principal, The Wiley Group, a firm specializing in strategy and business development (2005-present)
Other Public Company Board Memberships During Past 5 Years:
· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies, Director (2008-present)
No. of Portfolios for which Board Member Serves: 65
———————
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 c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 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-DREYFUS
James M. Fitzgibbons, Emeritus Board Member
J. Tomlinson Fort, Emeritus Board Member
34
OFFICERS OF THE FUND (Unaudited)
BRADLEY J. SKAPYAK, President since January 2010.
Chief Operating Officer and a director of the Manager since June 2009, Chairman of Dreyfus Transfer, Inc., an affiliate of the Manager and the transfer agent of the funds, since May 2011 and Executive Vice President of the Distributor since June 2007. 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 66 investment companies (comprised of 140 portfolios) managed by the Manager. He is 57 years old and has been an employee of the Manager since February 1988.
BENNETT A. MACDOUGALL, Chief Legal Officer since October 2015
Chief Legal Officer of the Manager since June 2015; from June 2005 to June 2015, Director and Associate General Counsel of Deutsche Bank – Asset & Wealth Management Division, and Chief Legal Officer of Deutsche Investment Management Americas Inc. He is an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2015.
JANETTE E. FARRAGHER, Vice President and Secretary since December 2011.
Assistant General Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. She is 52 years old and has been an employee of the Manager since February 1984.
JAMES BITETTO, Vice President and Assistant Secretary since August 2005.
Managing Counsel of BNY Mellon and Secretary of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since December 1996.
JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.
Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. She is 60 years old and has been an employee of the Manager since October 1988.
JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.
Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 54 years old and has been an employee of the Manager since June 2000.
JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.
Senior Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since February 1991.
MAUREEN E. KANE, Vice President and Assistant Secretary since April 2015.
Managing Counsel of BNY Mellon since July 2014; from October 2004 until July 2014, General Counsel, and from May 2009 until July 2014, Chief Compliance Officer of Century Capital Management. She is an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. She is 53 years old and has been an employee of the Manager since July 2014.
SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.
Senior Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager; from August 2005 to March 2013, Associate General Counsel of Third Avenue Management. She is 40 years old and has been an employee of the Manager since March 2013.
JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.
Senior Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 50 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 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 57 years old and has been an employee of the Manager since April 1985.
35
OFFICERS OF THE FUND (Unaudited) (continued)
RICHARD CASSARO, Assistant Treasurer since January 2008.
Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 56 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 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1991.
ROBERT S. ROBOL, Assistant Treasurer since December 2002.
Senior Accounting Manager – Fixed Income Funds of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 51 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 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since June 1989.
ROBERT SVAGNA, Assistant Treasurer since December 2002.
Senior Accounting Manager – Equity Funds of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since November 1990.
JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.
Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (67 investment companies, comprised of 165 portfolios). He is 58 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.
CARI M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016
Anti-Money Laundering Compliance Officer of the Dreyfus Family of Funds and BNY Mellon Funds Trust since January 2016; from May 2015 to December 2015, Interim Anti-Money Laundering Compliance Officer of the Dreyfus Family of Funds and BNY Mellon Funds Trust and the Distributor; from January 2012 to May 2015, AML Surveillance Officer of the Distributor and from 2007 to December 2011, Financial Processing Manager of the Distributor. She is an officer of 62 investment companies (comprised of 160 portfolios) managed by the Manager. She is 47 years old and has been an employee of the Distributor since 1997.
36
NOTES
37
General AMT-Free Municipal Money Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York Mellon
225 Liberty Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
MBSC Securities Corporation
200 Park Avenue
New York, NY 10166
Ticker Symbols: |
Class A: DLTXX Class B: DMBXX Dreyfus Class: DLRXX Class R: DTMXX |
Telephone Call your financial representative or 1-800-DREYFUS
Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 1556-0144
E-mail Send your request to info@dreyfus.com
Internet Information can be viewed online or downloaded at www.dreyfus.com
The fund will disclose daily, on www.dreyfus.com, the fund’s complete schedule of holdings as of the end of the previous business day. The schedule of holdings will remain on the website until the fund files its Form N-Q or Form N-CSR for the period that includes the date of the posted holdings.
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. (phone 1-800-SEC-0330 for information).
Information regarding how the fund voted proxies related to portfolio securities for the most recent 12-month period ended June 30 is available at www.dreyfus.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-DREYFUS.
© 2016 MBSC Securities Corporation |
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General Treasury and Agency Money Market Fund
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ANNUAL REPORT |
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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
With Those of Other Funds |
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Public Accounting Firm |
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FOR MORE INFORMATION
Back Cover
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The Fund |
Dear Shareholder:
We are pleased to present this annual report for General Treasury & Agency Money Market Fund, which, as a result of a change to the fund’s fiscal year-end, only covers the one-month period from October 31, 2015, through November 30, 2015. For information about how the fund performed during the one-month reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.
For the annual period ending November 30, 2015, financial markets proved volatile amid choppy U.S. and global economic growth. Employment and housing market gains helped U.S. stocks advance over the reporting period’s first half, driving some broad measures of market performance to new record highs in the spring. Although those gains were erased over the summer when global economic instability undermined investor sentiment, a renewed rally in the fall enabled most stock indices to end the reporting period in mildly positive territory. In contrast, international stocks mostly provided negative results, but developed markets fared better than emerging markets amid falling commodity prices and depreciating currency values. U.S. bonds produced modestly positive total returns overall, with municipal bonds achieving higher returns, on average, than U.S. government securities and corporate-backed bonds.
We expect market volatility to persist over the near term until investors see greater clarity regarding domestic and global economic conditions. Our investment strategists and portfolio managers are monitoring developments carefully, keeping a close watch on credit spreads, currency values, commodity prices, corporate profits, economic trends in the emerging markets, and other developments that could influence investor sentiment. Over the longer term, we remain confident that markets are likely to benefit as investors increasingly recognize that inflation is likely to stay low, economic growth expectations are stabilizing, and monetary policies remain accommodative in most regions of the world. In our view, investors will continue to be well served under these circumstances by a long-term perspective and a disciplined investment approach.
Thank you for your continued confidence and support.
Sincerely,
J. Charles Cardona
President
The Dreyfus Corporation
December 17, 2015
2
DISCUSSION OF FUND PERFORMANCE
For the period of November 1, 2015, through November 30, 2015, as provided by Patricia A. Larkin, Portfolio Manager
Fund and Market Performance Overview
The fund’s fiscal year end has changed to November 30 from October 31.
For the one-month period ended November 30, 2015, General Treasury and Agency Money Market Fund’s Class A shares produced an annualized yield of 0.00%, and Class R shares yielded 0.00%. Taking into account the effects of compounding, the fund’s Class A shares and Class R shares produced annualized effective yields of 0.00% and 0.00%, respectively.1
Although the Federal Reserve Board (the “Fed”) raised the federal funds rate in December 2015, after the reporting period’s end, it was unchanged during the reporting period itself, and yields of short-term U.S. government obligations remained near historical lows.
Effective September 1, 2015, the fund’s name changed from Dreyfus U.S. Treasury Reserves to General Treasury and Agency Money Market Fund, and its Investor shares were redesignated as Class A shares.
The Fund’s Investment Approach
The fund seeks a high level of current income consistent with stability of principal. We attempt to provide shareholders with an investment vehicle that is made up of direct U.S. government obligations with remaining maturities of 13 months or less, as well as repurchase agreements with securities dealers, which are backed by U.S. government securities. To pursue its goal, the fund normally invests exclusively in securities backed by the full faith and credit of the U.S. government and repurchase agreements (including tri-party repurchase agreements) in respect to such securities.
Uneven U.S. Economic Recovery Continued
November 2015 began in an environment of choppy economic growth as domestic labor markets continued to add jobs, housing markets rebounded from earlier weakness, and U.S. consumer and business confidence improved. However, these positive influences were counterbalanced by less favorable macroeconomic conditions in overseas markets, where aggressively accommodative monetary policies in Europe and Japan appeared to be having only a limited impact on reflating their economies, and China and other the emerging markets continued to struggle with slowing economic growth and sharply falling global commodity prices.
In this mixed climate, the U.S. service sector continued to expand in November, but U.S. manufacturing activity contracted for the first time in three years due to a strong U.S. dollar and weaker overseas demand. The U.S. labor market continued to gain strength with 211,000 new jobs and an unchanged unemployment rate of 5%. Meanwhile, new home sales rebounded strongly, in part due to lower sales prices. In addition, investors looked forward to the first in a series of long-awaited short-term interest rate hikes from the Fed as employment data gradually approached monetary policymakers’ targets.
3
DISCUSSION OF FUND PERFORMANCE (continued)
Fed to Raise Rates Gradually
In mid-December 2015, after the reporting period’s end, the Fed indeed raised short-term interest rates by 25 basis points to between 0.25% and 0.50%, stating, “The economic recovery has clearly come a long way, though it is not yet complete.” At the same time, the Fed made clear that monetary policy “remains accommodative” and “only gradual increases” are expected in the future. Therefore, we have continued to set the fund’s weighted average maturity in a range we consider to be in line with industry averages.
December 17, 2015
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
1 Annualized effective yield is based upon dividends declared daily and reinvested monthly. Past performance is no guarantee of future results. Yields fluctuate. Yields provided reflect the absorption of certain fund expenses by The Dreyfus Corporation pursuant to an undertaking in effect that may be extended, terminated, or modified at any time. Had these expenses not been absorbed, the fund’s yields would have been lower, and in some cases, 7-day yields during the reporting period would have been negative absent the expense absorption.
4
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in General Treasury and Agency Money Market Fund from November 1, 2015 to November 30, 2015. 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 one month ended November 30, 2015 |
|||||
|
|
|
|
Class A |
Class R |
Expenses paid per $1,000† |
$ .07 |
$ .08 | |||
Ending value (after expenses) |
$ 1,000.00 |
$ 1,000.00 |
COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)
Using the SEC’s method to compare expenses
The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
Expenses and Value of a $1,000 Investment |
|||||
assuming a hypothetical 5% return for the six months ended November 30, 2015†† |
|||||
|
|
|
|
Class A |
Class R |
Expenses paid per $1,000††† |
$ .46 |
$ .51 | |||
Ending value (after expenses) |
$ 1,024.62 |
$1,024.57 |
† Expenses are equal to the fund’s annualized expense ratio of .09% for Class A and .10% for Class R, multiplied by the average account value over the period, multiplied by 30/365 (to reflect the actual days in the period).
†† Please note that the hypothetical expenses paid during the period reflect projected activity for the full six month period for purposes of comparability. This projection assumes that annualized expense ratios were in effect during the period June 1, 2015 to November 30, 2015.
††† Expenses are equal to the fund’s annualized expense ratio of .09% for Class A and .10% for Class R, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
5
STATEMENT OF INVESTMENTS
November 30, 2015
U.S. Treasury Bills - 37.0% |
Annualized Yield on Date of Purchase (%) |
Principal |
Value ($) |
||||
1/14/16 |
0.08 |
35,000,000 |
34,996,578 |
||||
1/21/16 |
0.13 |
50,000,000 |
49,990,792 |
||||
2/4/16 |
0.17 |
25,000,000 |
24,992,326 |
||||
4/28/16 |
0.20 |
25,000,000 |
24,979,305 |
||||
Total U.S. Treasury Bills (cost $134,959,001) |
134,959,001 |
||||||
Repurchase Agreements - 62.7% |
|||||||
Citigroup Global Markets Holdings Inc. |
0.11 |
70,000,000 |
70,000,000 |
||||
dated 11/30/15, due 12/1/15 in the amount of $70,000,214 (fully collateralized by $68,951,200 U.S. Treasury Notes, 1%-2.25%, due 9/15/17-7/31/18, value $71,400,018) |
|||||||
Credit Agricole CIB |
0.10 |
39,000,000 |
39,000,000 |
||||
dated 11/30/15, due 12/1/15 in the amount of $39,000,108 (fully collateralized by $13,820,226 U.S. Treasury Inflation Protected Securities, 0.13%, due 4/15/16, value $14,831,016 and $24,975,115 U.S. Treasury Notes, 1.38%-2.13%, due 8/31/20-5/15/25, value $24,948,984) |
|||||||
HSBC USA Inc. |
0.10 |
50,000,000 |
50,000,000 |
||||
dated 11/30/15, due 12/1/15 in the amount of $50,000,139 (fully collateralized by $40,440,000 U.S. Treasury Bonds, 4.38%, due 11/15/39, value $51,003,452) |
|||||||
JPMorgan Chase & Co. |
0.10 |
70,000,000 |
70,000,000 |
||||
dated 11/30/15, due 12/1/15 in the amount of $70,000,194 (fully collateralized by $71,845,000 U.S. Treasury Notes, 1.38%, due 3/31/20, value $71,403,268) |
|||||||
Total Repurchase Agreements (cost $229,000,000) |
229,000,000 |
||||||
Total Investments (cost $363,959,001) |
99.7% |
363,959,001 |
|||||
Cash and Receivables (Net) |
.3% |
1,153,395 |
|||||
Net Assets |
100.0% |
365,112,396 |
6
Portfolio Summary (Unaudited) † |
Value (%) |
Repurchase Agreements |
62.7 |
U.S. Treasury Bills |
37.0 |
99.7 |
† Based on net assets.
See notes to financial statements.
7
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2015
|
|
|
|
|
|
|
|
|
|
Cost |
|
Value |
|
Assets ($): |
|
|
|
| ||
Investments in securities—See Statement of Investments |
|
363,959,001 |
|
363,959,001 |
| |
Cash |
|
|
|
|
1,168,674 |
|
Interest receivable |
|
|
|
|
656 |
|
|
|
|
|
|
365,128,331 |
|
Liabilities ($): |
|
|
|
| ||
Due to The Dreyfus Corporation and affiliates—Note 2(b) |
|
|
|
|
15,935 |
|
|
|
|
|
|
15,935 |
|
Net Assets ($) |
|
|
365,112,396 |
| ||
Composition of Net Assets ($): |
|
|
|
| ||
Paid-in capital |
|
|
|
|
365,112,396 |
|
Net Assets ($) |
|
|
365,112,396 |
|
Net Asset Value Per Share |
Class A |
Class R |
|
Net Assets ($) |
162,027,931 |
203,084,465 |
|
Shares Outstanding |
162,027,667 |
203,084,729 |
|
Net Asset Value Per Share ($) |
1.00 |
1.00 |
|
See notes to financial statements.
8
STATEMENT OF OPERATIONS
|
|
|
|
|
One |
Year Ended |
|
|
|
|
|
November 30, 2015a |
October 31, 2015 |
Investment Income ($): |
|
|
|
| ||
Interest Income |
|
|
27,704 |
306,682 | ||
Expenses: |
|
|
|
| ||
Management fee—Note 2(a) |
|
|
145,670 |
1,986,693 | ||
Distribution fees—Note 2(b) |
|
|
26,778 |
280,741 | ||
Directors’ fees—Note 2(a,c) |
|
|
10,521 |
36,407 | ||
Total Expenses |
|
|
182,969 |
2,303,841 | ||
Less—reduction in expenses due to undertaking—Note 2(a) |
|
|
(144,757) |
(1.960,925) | ||
Less—Directors’ fees reimbursed by Dreyfus—Note 2(a) |
|
|
(10,521) |
(36,407) | ||
Net Expenses |
|
|
27,691 |
306,509 | ||
Investment Income—Net |
|
|
13 |
173 | ||
Realized Gain (loss) on Investments—Note 1(b) ($) |
|
|
- |
800 | ||
Net Increase in Net Assets Resulting from Operations |
|
|
13 |
973 |
a The fund changed its fiscal year end from October 31 to November 30.
See notes to financial statements.
9
STATEMENT OF CHANGES IN NET ASSETS
One Month Ended |
Year Ended October 31, | ||||||||
|
|
|
|
November 30, 2015 |
a |
2015 |
|
2014 |
|
Operations ($): |
|
|
|
|
|
|
|
| |
Investment income—net |
|
|
13 |
|
173 |
|
117 |
| |
Net realized gain (loss) on investments |
|
- |
|
800 |
|
1,112 |
| ||
Net Increase (Decrease) in Net Assets |
13 |
|
973 |
|
1,229 |
| |||
Dividends to Shareholders from ($): |
|
|
|
|
|
|
|
| |
Investment income—net: |
|
|
|
|
|
|
|
| |
Class A |
|
|
(354) |
|
(417) |
|
(51) |
| |
Class R |
|
|
(459) |
|
(868) |
|
(66) |
| |
Total Dividends |
|
|
(813) |
|
(1,285) |
|
(117) |
| |
Capital Stock Transactions ($1.00 per share): |
|
|
|
|
|
|
| ||
Net proceeds from shares sold: |
|
|
|
|
|
|
|
| |
Class A |
|
|
3,111,655 |
|
126,278,266 |
|
88,084,148 |
| |
Class R |
|
|
60,321,266 |
|
436,832,145 |
|
524,399,309 |
| |
Dividends reinvested: |
|
|
|
|
|
|
|
| |
Class A |
|
|
351 |
|
410 |
|
51 |
| |
Class R |
|
|
6 |
|
4 |
|
- |
| |
Cost of shares redeemed: |
|
|
|
|
|
|
|
| |
Class A |
|
|
(11,335,231) |
|
(78,563,781) |
|
(121,394,764) |
| |
Class R |
|
|
(33,231,754) |
|
(592,432,301) |
|
(379,459,480) |
| |
Increase (Decrease) in Net Assets |
18,866,293 |
|
(107,885,257) |
|
111,629,264 |
| |||
Total Increase (Decrease) in Net Assets |
18,865,493 |
|
(107,885,569) |
|
111,630,376 |
| |||
Net Assets ($): |
|
|
|
|
|
|
|
| |
Beginning of Period |
|
|
346,246,903 |
|
454,132,472 |
|
342,502,096 |
| |
End of Period |
|
|
365,112,396 |
|
346,246,903 |
|
454,132,472 |
| |
a The fund has changed its fiscal year end from October 31 to November 30.
See notes to financial statements.
10
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the fiscal periods indicated. All information reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund’s financial statements.
One Month Ended November 30, 2015a |
||||||
Year Ended October 31, | ||||||
Class A Shares |
2015 |
2014 |
2013 |
2012 |
2011 | |
Per Share Data ($): |
||||||
Net asset value, beginning of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Investment Operations: |
||||||
Investment income—netb |
.000 |
.000 |
.000 |
.000 |
.000 |
.000 |
Distributions: |
||||||
Dividends from |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
Net asset value, end of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Total Return (%)c |
.00d |
.00 |
.00 |
.00 |
.00 |
.00 |
Ratios/Supplemental Data (%): |
||||||
Ratio of total expenses |
.74e |
.71 |
.71 |
.71 |
.71 |
.71 |
Ratio of net expenses |
.09e |
.08 |
.05 |
.09 |
.10 |
.12 |
Ratio of net investment income |
.00e |
.00 |
.00 |
.00 |
.00 |
.00 |
Net Assets, end of period ($ x 1,000) |
162,028 |
170,252 |
122,537 |
155,847 |
122,029 |
125,984 |
a The fund has changed its fiscal year end from October 31 to November 30.
b Amount represents less than $.001 per share.
c Amount represents less than .01%.
d Not annualized.
e Annualized.
See notes to financial statements.
11
FINANCIAL HIGHLIGHTS (continued)
One Month Ended November 30, 2015a |
||||||
Year Ended October 31, | ||||||
Class R Shares |
2015 |
2014 |
2013 |
2012 |
2011 | |
Per Share Data ($): |
||||||
Net asset value, beginning of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Investment Operations: |
||||||
Investment income—netb |
.000 |
.000 |
.000 |
.000 |
.000 |
.000 |
Distributions: |
||||||
Dividends from |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
(.000) |
Net asset value, end of period |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
Total Return (%)c |
.00d |
.00 |
.00 |
.00 |
.00 |
.00 |
Ratios/Supplemental Data (%): |
||||||
Ratio of total expenses |
.54e |
.51 |
.51 |
.51 |
.51 |
.50 |
Ratio of net expenses |
.10e |
.08 |
.05 |
.09 |
.11 |
.12 |
Ratio of net investment income |
.00e |
.00 |
.00 |
.00 |
.00 |
.00 |
Net Assets, end of period ($ x 1,000) |
203,084 |
175,995 |
331,596 |
186,655 |
214,391 |
153,112 |
a The fund has changed its fiscal year end from October 31 to November 30.
b Amount represents less than $.001 per share.
c Amount represents less than .01%.
d Not annualized.
e Annualized.
See notes to financial statements.
12
NOTES TO FINANCIAL STATEMENTS
NOTE 1—Significant Accounting Policies:
General Treasury and Agency Money Market Fund (the “fund”) is a separate diversified series of The Dreyfus/Laurel Funds, Inc. (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering ten series, including the fund. The fund’s investment objective is to seek a high level of current income consistent with stability of principal. 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.
The Company’s Board of Directors (the “Board”) approved a change in the fund’s fiscal year end from October 31 to November 30.
MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund’s shares, which are sold without a sales charge. The fund is authorized to issue 1 billion shares of $.001 par value Common Stock in each of the following classes of shares: Class A and Class R. Class A shares are sold primarily to retail investors through financial intermediaries and bear a Distribution Plan fee. Class R shares are sold primarily to bank trust departments and other financial service providers (including The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, and its affiliates), acting on behalf of customers having a qualified trust or an investment account or relationship at such institution, and bear no Distribution Plan fee. Other differences between the classes include the services offered to and the expenses borne by each class, 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.
It is the fund’s policy to maintain a continuous net asset value per share of $1.00; the fund has adopted certain investment, portfolio valuation and dividend and distribution policies to enable it to do so. There is no assurance, however, that the fund will be able to maintain a stable net asset value per share of $1.00.
The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.
13
NOTES TO FINANCIAL STATEMENTS (continued)
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued at amortized cost in accordance with Rule 2a-7 under the Act. If amortized cost is determined not to approximate market value, the fair value of the portfolio securities will be determined by procedures established by and under the general supervision of the Board.
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For
14
example, money market securities are valued using amortized cost, in accordance with rules under the Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected within Level 2 of the fair value hierarchy.
The following is a summary of the inputs used as of November 30, 2015 in valuing the fund’s investments:
Valuation Inputs |
Short-Term Investments ($)† |
Level 1 - Unadjusted Quoted Prices |
- |
Level 2 - Other Significant Observable Inputs |
363,959,001 |
Level 3 - Significant Unobservable Inputs |
- |
Total |
363,959,001 |
† See Statement of Investments for additional detailed categorizations. |
At November 30, 2015, there were no transfers between levels of the fair value hierarchy.
(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and is recognized on the accrual basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Cost of investments represents amortized cost.
The fund may enter into repurchase agreements with financial institutions, deemed to be creditworthy by Dreyfus, subject to the seller’s agreement to repurchase and the fund’s agreement to resell such securities at a mutually agreed upon price. Pursuant to the terms of the repurchase agreement, such securities must have an aggregate market value greater than or equal to the terms of the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the fund will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the fund maintains its right to sell the underlying securities at market value and may claim any resulting loss against the seller. The fund may also jointly enter into one or more repurchase agreements with other Dreyfus-managed funds in accordance with an exemptive order granted by the SEC pursuant to section 17(d) and Rule 17d-1 under the Act. Any joint
15
NOTES TO FINANCIAL STATEMENTS (continued)
repurchase agreements must be collateralized fully by U.S. Government securities.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, 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.
As of and during the period ended November 30, 2015, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended November 30, 2015, the fund did not incur any interest or penalties.
The tax period ended November 30, 2015 and each tax year in the four-year period ended October 31, 2015 remains subject to examination by the Internal Revenue Service and state taxing authorities.
At November 30, 2015, the components of accumulated earnings on a tax basis were substantially the same as for financial reporting purposes.
The tax character of distributions paid to shareholders during the fiscal periods ended November 30, 2015, October 31, 2015 and October 31, 2014 were all ordinary income.
During the period ended November 30, 2015, as a result of permanent book to tax differences, primarily due to the tax treatment for dividend reclassification, the fund increased accumulated undistributed investment income-net by $800 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.
At November 30, 2015, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).
16
NOTE 2—Investment Management Fee and Other Transactions with Affiliates:
(a) Pursuant to an investment management agreement with Dreyfus, Dreyfus provides or arranges for one or more third parties and/or affiliates to provide investment advisory, administrative, custody, fund accounting and transfer agency services to the fund. Dreyfus also directs the investments of the fund in accordance with its investment objective, policies and limitations. For these services, the fund is contractually obligated to pay Dreyfus a fee, calculated daily and paid monthly, at an annual rate of .50% of the value of the fund’s average daily net assets. Out of its fee, Dreyfus pays all of the expenses of the fund except brokerage fees, taxes, Distribution Plan fees, fees and expenses of non-interested Directors (including counsel fees) and extraordinary expenses. In addition, Dreyfus is required to reduce its fee in an amount equal to the fund’s allocable portion of fees and expenses of the non-interested Directors (including counsel fees). During the periods ended November 30, 2015 and October 31, 2015, fees reimbursed by Dreyfus amounted to $10,521 and $36,407, respectively.
Dreyfus has undertaken to waive receipt of the management fee and/or reimburse operating expenses in order to facilitate a daily yield at or above a certain level which may change from time to time. This undertaking is voluntary and not contractual, and may be terminated at any time. The reduction in expenses, pursuant to the undertaking, amounted to $144,757 and $1,960,925, respectively, during the periods ended November 30, 2015 and October 31, 2015.
(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Class A shares may pay annually up to .25% (currently limited by the Board to .20%) of the value of the average daily net assets attributable to its Class A shares to compensate the Distributor for shareholder servicing activities and expenses primarily intended to result in the sale of Class A shares. During the periods ended November 30, 2015 and October 31, 2015, Class A shares were charged $26,778 and $280,741, respectively, pursuant to the Distribution Plan.
Under its terms, the Distribution Plan shall remain in effect from year to year, provided such continuance is approved annually by a vote of a majority of those Directors who are not “interested persons” of the Company and who have no direct or indirect financial interest in the operation of or in any agreement related to the Distribution Plan.
The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees
17
NOTES TO FINANCIAL STATEMENTS (continued)
$135,723 and Distribution Plan fees $26,778, which are offset against an expense reimbursement currently in effect in the amount of $146,566.
(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTE 3—Regulatory Developments:
On July 23, 2014, the SEC adopted amendments to the rules that govern the operations of money market mutual funds. The degree to which a fund will be impacted by the amendments will depend upon the type of fund and the type of investors (retail or institutional). The amendments have staggered compliance dates, but funds must be in compliance with all amendments by October 14, 2016. At this time, management continues to evaluate the implications of the amendments and their impact to the fund’s operations, financial statements and accompanying notes.
18
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
The Board of Directors and Shareholders of
The Dreyfus/Laurel Funds, Inc.
We have audited the accompanying statement of assets and liabilities of General Treasury and Agency Money Market Fund (the “Fund”), a series of The Dreyfus/Laurel Funds, Inc., including the statement of investments, as of November 30, 2015, the related statements of operations for the one-month period ended November 30, 2015 and for the year ended October 31, 2015, the statements of changes in net assets for one-month period ended November 30, 2015 and for each of the years in the two-year period ended October 31, 2015, and the financial highlights for the one-month period ended November 30, 2015 and for each of the years in the five-year period ended October 31, 2015. 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of November 30, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of General Treasury and Agency Money Market Fund as of November 30, 2015, the results of its operations for the one-month period ended November 30, 2015 and for the year ended October 31, 2015, the changes in its net assets for the one-month period ended November 30, 2015 and for each of the years in the two-year period ended October 31, 2015, and the financial highlights for the one-month period ended November 30, 2015 and for each of the years in the five-year period ended October 31, 2015, in conformity with U.S. generally accepted accounting principles.
New York, New York
January 28, 2016
19
IMPORTANT TAX INFORMATION (Unaudited)
For federal tax purposes, the fund designates the maximum amount allowable but not less than 100% as interest-related dividends in accordance with Sections 871(k)(1) and 881(e) of the Internal Revenue Code.
20
BOARD MEMBERS INFORMATION (Unaudited)
INDEPENDENT BOARD MEMBERS
Chairman of the Board (1999)
Principal Occupation During Past 5 Years:
· Corporate Director and Trustee (1995-present)
Other Public Company Board Memberships During Past 5 Years:
· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies, Director (1997-present)
No. of Portfolios for which Board Member Serves: 140
———————
Francine J. Bovich (64)
Board Member (2012)
Principal Occupation During Past 5 Years:
· Trustee, The Bradley Trusts, private trust funds (2011-present)
· Managing Director, Morgan Stanley Investment Management (1993-2010)
Other Public Company Board Memberships During Past 5 Years:
· Annaly Capital Management, Inc., Board Member (May 2014-present)
No. of Portfolios for which Board Member Serves: 79
———————
Kenneth A. Himmel (69)
Board Member (1994)
Principal Occupation During Past 5 Years:
· Managing Partner, Gulf Related, an international real estate development company (2010-present)
· President and CEO, Related Urban Development, a real estate development company (1996-present)
· President and CEO, Himmel & Company, a real estate development company (1980-present)
· CEO, American Food Management, a restaurant company (1983-present)
No. of Portfolios for which Board Member Serves: 29
———————
21
BOARD MEMBERS INFORMATION (Unaudited) (continued)
INDEPENDENT BOARD MEMBERS (continued)
Stephen J. Lockwood (68)
Board Member (1994)
Principal Occupation During Past 5 Years:
· Chairman of the Board, Stephen J. Lockwood and Company LLC, a real estate investment company (2000-present)
No. of Portfolios for which Board Member Serves: 29
———————
Roslyn M. Watson (66)
Board Member (1994)
Principal Occupation During Past 5 Years:
· Principal, Watson Ventures, Inc., a real estate investment company (1993-present)
No. of Portfolios for which Board Member Serves: 65
———————
Benaree Pratt Wiley (69)
Board Member (1998)
Principal Occupation During Past 5 Years:
· Principal, The Wiley Group, a firm specializing in strategy and business development (2005-present)
Other Public Company Board Memberships During Past 5 Years:
· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies, Director (2008-present)
No. of Portfolios for which Board Member Serves: 65
———————
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 c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 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-DREYFUS
James M. Fitzgibbons, Emeritus Board Member
J. Tomlinson Fort, Emeritus Board Member
22
OFFICERS OF THE FUND (Unaudited)
BRADLEY J. SKAPYAK, President since January 2010.
Chief Operating Officer and a director of the Manager since June 2009, Chairman of Dreyfus Transfer, Inc., an affiliate of the Manager and the transfer agent of the funds, since May 2011 and Executive Vice President of the Distributor since June 2007. 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 66 investment companies (comprised of 140 portfolios) managed by the Manager. He is 57 years old and has been an employee of the Manager since February 1988.
BENNETT A. MACDOUGALL, Chief Legal Officer since October 2015
Chief Legal Officer of the Manager since June 2015; from June 2005 to June 2015, Director and Associate General Counsel of Deutsche Bank – Asset & Wealth Management Division, and Chief Legal Officer of Deutsche Investment Management Americas Inc. He is an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2015.
JANETTE E. FARRAGHER, Vice President and Secretary since December 2011.
Assistant General Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. She is 52 years old and has been an employee of the Manager since February 1984.
JAMES BITETTO, Vice President and Assistant Secretary since August 2005.
Managing Counsel of BNY Mellon and Secretary of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since December 1996.
JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.
Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. She is 60 years old and has been an employee of the Manager since October 1988.
JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.
Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 54 years old and has been an employee of the Manager since June 2000.
JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.
Senior Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since February 1991.
MAUREEN E. KANE, Vice President and Assistant Secretary since April 2015.
Managing Counsel of BNY Mellon since July 2014; from October 2004 until July 2014, General Counsel, and from May 2009 until July 2014, Chief Compliance Officer of Century Capital Management. She is an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. She is 53 years old and has been an employee of the Manager since July 2014.
SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.
Senior Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager; from August 2005 to March 2013, Associate General Counsel of Third Avenue Management. She is 40 years old and has been an employee of the Manager since March 2013.
JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.
Senior Managing Counsel of BNY Mellon, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 50 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 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 57 years old and has been an employee of the Manager since April 1985.
23
OFFICERS OF THE FUND (Unaudited) (continued)
RICHARD CASSARO, Assistant Treasurer since January 2008.
Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 56 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 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1991.
ROBERT S. ROBOL, Assistant Treasurer since December 2002.
Senior Accounting Manager – Fixed Income Funds of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 51 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 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since June 1989.
ROBERT SVAGNA, Assistant Treasurer since December 2002.
Senior Accounting Manager – Equity Funds of the Manager, and an officer of 67 investment companies (comprised of 165 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since November 1990.
JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.
Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (67 investment companies, comprised of 165 portfolios). He is 58 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.
CARI M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016
Anti-Money Laundering Compliance Officer of the Dreyfus Family of Funds and BNY Mellon Funds Trust since January 2016; from May 2015 to December 2015, Interim Anti-Money Laundering Compliance Officer of the Dreyfus Family of Funds and BNY Mellon Funds Trust and the Distributor; from January 2012 to May 2015, AML Surveillance Officer of the Distributor and from 2007 to December 2011, Financial Processing Manager of the Distributor. She is an officer of 62 investment companies (comprised of 160 portfolios) managed by the Manager. She is 47 years old and has been an employee of the Distributor since 1997.
24
NOTES
25
General Treasury and Agency Money Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York Mellon
225 Liberty Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
MBSC Securities Corporation
200 Park Avenue
New York, NY 10166
Ticker Symbols: |
Class A: DUIXX Class R: DUTXX |
Telephone Call your financial representative or 1-800-DREYFUS
Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 1556-0144
E-mail Send your request to info@dreyfus.com
Internet Information can be viewed online or downloaded at www.dreyfus.com
The fund will disclose daily, on www.dreyfus.com, the fund’s complete schedule of holdings as of the end of the previous business day. The schedule of holdings will remain on the website until the fund files its Form N-Q or Form N-CSR for the period that includes the date of the posted holdings.
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. (phone 1-800-SEC-0330 for information).
Information regarding how the fund voted proxies related to portfolio securities for the most recent 12-month period ended June 30 is available at www.dreyfus.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-DREYFUS.
© 2016 MBSC Securities Corporation |
|
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 Joseph S. DiMartino, 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"). Mr. DiMartino 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 $60,200 in 2015 and $37,400 in 2015.
(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 $4,280 in 2015 and $1,500 in 2015. 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 2015 and $0 in 2015.
(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 $4,860 in 2015 and $5,000 in 2015. These services consisted of review or preparation of U.S. federal, state, local and excise tax returns. 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 2015 and $0 in 2015.
(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 2015 and $0 in 2015.
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 2015 and $0 in 2015.
(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 $14,933,643 in 2015 and $15,517,652 in 2015.
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.
Item 6. Investments.
(a) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.
Not applicable.
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.
The Dreyfus/Laurel Funds, Inc.
By: /s/ Bradley J. Skapyak
Bradley J. Skapyak,
President
Date: January 20, 2016
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: January 20, 2016
By: /s/ James Windels
James Windels,
Treasurer
Date: January 20, 2016
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)
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]—Exhibit (a)(2)
SECTION 302 CERTIFICATION
I, Bradley J. Skapyak, certify that:
1. I have reviewed this report on Form N-CSR of The Dreyfus/Laurel Funds, 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: January 20, 2016
SECTION 302 CERTIFICATION
I, James Windels, certify that:
1. I have reviewed this report on Form N-CSR of The Dreyfus/Laurel Funds, 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: January 20, 2016
[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: January 20, 2016
By: /s/ James Windels
James Windels,
Treasurer
Date: January 20, 2016
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.
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