-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U7ie4orPA/eas4N8aBd4Ge35uvgg8fzObCeby7vJLooN1cFlS4mRgNMHRuHnrbjD WtGmvjcUGZd+bcU+Ih0ENg== 0000797923-00-000009.txt : 20001228 0000797923-00-000009.hdr.sgml : 20001228 ACCESSION NUMBER: 0000797923-00-000009 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001031 FILED AS OF DATE: 20001227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS PREMIER MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0000797923 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: NY FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04764 FILM NUMBER: 795949 BUSINESS ADDRESS: STREET 1: 144 GLENN CURTISS BLVD CITY: UNIONDALE STATE: NY ZIP: 11556 BUSINESS PHONE: 2129226805 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: PREMIER MUNICIPAL BOND FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PREMIER TAX EXEMPT BOND FUND DATE OF NAME CHANGE: 19900916 FORMER COMPANY: FORMER CONFORMED NAME: GARDEN CITY TAX EXEMPT BOND FUND DATE OF NAME CHANGE: 19860910 N-30D 1 0001.txt SEMI-ANNUAL REPORT Dreyfus Premier Municipal Bond Fund SEMIANNUAL REPORT October 31, 2000 (reg.tm) The views expressed herein are current to the date of this report. These views and the composition of the fund's portfolio are subject to change at any time based on market and other conditions. * Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value Contents THE FUND - -------------------------------------------------- 2 Letter from the President 3 Discussion of Fund Performance 6 Statement of Investments 13 Statement of Assets and Liabilities 14 Statement of Operations 15 Statement of Changes in Net Assets 17 Financial Highlights 20 Notes to Financial Statements FOR MORE INFORMATION - --------------------------------------------------------------------------- Back Cover The Fund Dreyfus Premier Municipal Bond Fund LETTER FROM THE PRESIDENT Dear Shareholder: We are pleased to present this semiannual report for Dreyfus Premier Municipal Bond Fund, covering the six-month period from May 1, 2000 through October 31, 2000. Inside, you' ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund's portfolio manager, Samuel Weinstock. Despite some modest fluctuations because of changing economic conditions, municipal bond prices generally rose modestly over the six-month reporting period. Most sectors of the municipal bond market also benefited from slowing economic growth as well. Additionally, the moderating effects of the Federal Reserve Board' s (the "Fed") interest-rate hikes during the first half of 2000 helped the Fed to achieve its goal of slowing the U.S. economy. Other factors such as higher energy prices and a weak euro also served to slow economic growth. In general, the overall investment environment that prevailed in the second half of the 1990s had provided returns well above their long-term averages, establishing unrealistic expectations for some investors. We believe that as the risks of the stock market have become more apparent recently, the relative stability and income potential of municipal bonds can make them an attractive investment as part of a well-balanced portfolio. For more information about the economy and financial markets, we encourage you to visit the Market Commentary section of our website at www.dreyfus.com. Or, to speak with a Dreyfus customer service representative, call us at 1-800-782-6620 Thank you for investing in Dreyfus Premier Municipal Bond Fund. Sincerely, Stephen E. Canter President and Chief Investment Officer The Dreyfus Corporation November 15, 2000 DISCUSSION OF FUND PERFORMANCE Samuel Weinstock, Portfolio Manager How did Dreyfus Premier Municipal Bond Fund perform during the period? For the six-month period ended October 31, 2000, the fund's Class A shares provided a 4.62% total return, its Class B shares provided a 4.40% total return and its Class C shares provided a 4.24% total return.(1) In comparison, the Lipper General Municipal Debt Funds category average provided a 5.15% total return for the same period.(2) We attribute the fund's absolute performance to a relatively strong investment environment for municipal bonds over the past six months, which was driven primarily by signs of an economic slowdown in the U.S., as well as positive supply-and-demand factors affecting municipal bonds throughout the nation. However, our lagging relative performance is largely the result of our focus on income-oriented and high quality securities during a time in which more aggressive bonds performed best. The fund's conservative approach tends to help our relative performance during declining markets, but may cause the fund to lag in rising markets. What is the fund's investment approach? Our goal is to seek as high a level of federally tax-exempt income as is practical without undue risk from a diversified portfolio of municipal bonds To achieve our objective, we employ four primary strategies. First, we strive to identify the maturity range that we believe will provide the most favorable returns over the next two years. Second, we evaluate issuers' credit quality to find bonds that we believe provide high yields at attractive prices. Third, we look for bonds with attractively high interest payments, even if they sell at a premium to face value. Fourth, we assess individual bonds' early redemption features, focusing on those that cannot be redeemed soon by their issuers. Typically, the bonds we select for the fund will have several of these qualities. The Fund DISCUSSION OF FUND PERFORMANCE (CONTINUED) What other factors influenced the fund's performance? The fund was positively influenced over the past six months by favorable economic and market conditions. When the reporting period began on May 1, 2000, the U.S. economy continued to grow strongly, raising concerns that long-dormant inflationary pressures might reemerge. In response, the Federal Reserve Board (the "Fed" ) raised short-term interest rates once during the reporting period for an increase of 0.50 percentage points. However, signs soon emerged that the Fed's previous interest-rate hikes were having the desired effect of slowing the economy, suggesting that the Fed's restrictive monetary policies could be near an end. In addition, the continuing strength of state and local economies helped keep municipal bond yields relatively low compared to taxable bonds. Most municipalities enjoyed higher revenues during the reporting period, curtailing their need to borrow and resulting in a reduced supply of securities compared to the same period in 1999. When supply falls and demand rises or remains steady, prices of existing bonds tend to move higher. In this environment, we sold some of our shorter term holdings that were less liquid -- that is, more difficult to trade -- than we would have liked. We also sold income-oriented bonds into a secondary market characterized by very strong demand from individual investors, helping to maximize the prices we receive We redeployed the proceeds of those sales primarily into bonds that we believe are more likely to provide attractive total returns, including intermediate-term bonds with no provisions for early redemption. Other new purchases included insured bonds; double-A rated housing bonds with attractive income characteristics; and bonds from high tax states such as New Jersey, California and Connecticut. We have also added "index bonds," which, because they are included in popular municipal bond indices, tend to be highly liquid. Despite these changes, we have generally maintained the fund's average duration -- a measure of sensitivity to changing interest rates -- in the neutral range, part of our strategy to enhance price stability. What is the fund's current strategy? We have generally maintained the same strategy that we employed through most of the reporting period. We have continued to attempt to upgrade our holdings with insured and highly rated bonds, which we expect will help balance our long-standing holdings of lower rated, high yield bonds. We also intend to carefully monitor the current economic slowdown. We are doing this not to forecast interest-rate trends, but to identify factors that may affect our holdings' credit quality. By conducting intensive credit analyses, we believe that we can more effectively seek to improve the fund's income stream. At the same time, we intend to focus on risk management through broad diversification and by maintaining a prudent balance between income-oriented and total return-oriented bonds. November 15, 2000 (1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID, AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE CASE OF CLASS A SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE. (2) SOURCE: LIPPER INC.
The Fund STATEMENT OF INVESTMENTS October 31, 2000 (Unaudited) STATEMENT OF INVESTMENTS Principal LONG-TERM MUNICIPAL INVESTMENTS--101.5% Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA--2.0% University of Alabama, HR: 5.75%, 9/1/2020 (Insured; MBIA) 3,000,000 3,032,280 5.75%, 11/15/2029 (Insured; MBIA) 5,000,000 5,112,650 CALIFORNIA--5.3% California: 5.625%, 5/1/2018 5,550,000 5,750,355 5.25%, 10/1/2024 50,000 49,030 6.47%, 10/1/2024 5,000,000 4,806,050 California Public Works Board, LR (Dept. of Corrections Corcoran) 5.50%, 1/1/2017 (Insured; AMBAC) 5,000,000 5,113,900 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue 6%, 1/1/2034 5,000,000 5,479,900 COLORADO--10.9% Arapahoe County Capital Improvement Trust Fund, Highway Revenue (E-470 Project): Zero Coupon, 8/31/2005 2,530,000 2,010,718 Zero Coupon, 8/31/2007 (Prerefunded 8/31/2005) 4,000,000 (a) 2,836,920 7%, 8/31/2026 (Prerefunded 8/31/2005) 11,000,000 (a) 12,424,720 Dawson Ridge, Metropolitan District Number 1 Zero Coupon, 10/1/2017 9,930,000 3,243,436 Denver City and County, Airport Revenue: 6%, 11/15/2014 (Insured; AMBAC) 5,000,000 5,259,700 6%, 11/15/2017 (Insured; AMBAC) 5,000,000 5,196,600 7.50%, 11/15/2023 (Prerefunded 11/15/2004) 2,060,000 (a) 2,309,301 7.50%, 11/15/2023 9,715,000 10,638,119 CONNECTICUT--5.9% Connecticut: 5.75%, 6/15/2011 130,000 139,576 6.496%, 6/15/2011 5,500,000 (b,c) 6,310,260 Connecticut Development Authority, PCR (Connecticut Light & Power) 5.85%, 9/1/2028 7,700,000 7,247,086 Connecticut Housing Finance Authority 5.85%, 5/15/2031 2,500,000 2,504,450 Mashantucket Western Pequot Tribe, Special Revenue 5.75%, 9/1/2027 8,000,000 7,374,880 DELAWARE--1.0% Delaware Housing Authority, MFMR 7%, 5/1/2025 3,725,000 3,886,479 Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA--3.6% Miami-Dade County Industrial Development Authority, Special Facilities Revenue (United Airlines, Inc. Project) 6.05%, 3/1/2035 3,000,000 (d) 3,023,100 Palm Beach County, Solid Waste IDR: (Okeelanta Power LP Project) 6.85%, 2/15/2021 6,750,000 (d) 3,982,500 (Osceola Power LP) 6.95%, 1/1/2022 7,500,000 (d) 4,425,000 Santa Rosa Bay Bridge Authority, Revenue 6.25%, 7/1/2028 3,000,000 2,843,310 GEORGIA--1.2% Georgia 5.25%, 7/1/2017 5,000,000 4,985,850 ILLINOIS--2.9% Carol Stream, First Mortgage Revenue (Windsor Park Manor Project) 6.50%, 12/1/2007 2,000,000 1,998,280 Chicago O'Hare International Airport, Special Facility Revenue 4.713%, 4/1/2011 2,725,000 (b,c) 2,227,579 (United Airlines Project) 5.20%, 4/1/2011 50,000 45,437 East Chicago, PCR (Inland Steel Co. Project) 7.125%, 6/1/2007 3,000,000 2,908,920 Illinois Development Finance Authority, Revenue (Community Rehabilitation Providers Facility): 8.75%, 3/1/2010 157,000 158,060 8.50%, 9/1/2010 1,495,000 1,530,835 8.25%, 8/1/2012 2,735,000 2,846,369 INDIANA--3.3% Indiana Development Finance Authority: Exempt Facilities Revenue (Inland Steel) 5.75%, 10/1/2011 11,500,000 9,848,140 PCR (Inland Steel Co., Project Number 12) 6.85%, 12/1/2012 3,800,000 3,571,240 KENTUCKY--1.5% Perry County, SWDR (TJ International Project): 7%, 6/1/2024 3,500,000 3,578,960 6.55%, 4/15/2027 2,500,000 2,471,400 LOUISIANA--1.9% DeSoto Parish, PCR (Cleco Utility Group, Inc. Project) 5.875%, 9/1/2029 (Insured; AMBAC) 3,110,000 3,162,061 Louisiana Housing Finance Agency, MFHR (LaBelle Projects) 9.75%, 10/1/2020 4,045,000 4,435,019 MARYLAND--.5% Maryland Energy Financing Administration, SWDR (Wheelabrator Water Projects) 6.45%, 12/1/2016 2,100,000 2,151,597 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS--5.7% Massachusetts Industrial Finance Agency: Health Care Facility Revenue (Metro Health Foundation, Inc. Project) 6.75%, 12/1/2027 8,000,000 7,325,440 Water Treatment Revenue (American Hingham) 6.95%, 12/1/2035 2,640,000 2,727,833 Massachusetts Turnpike Authority, Metropolitan Highway Systems Revenue 5%, 1/1/2039 (Insured; MBIA) 5,000,000 4,432,850 Route 3 North Transportation Improvement Association, LR: 5.75%, 6/15/2017 (Insured; MBIA) 3,000,000 3,108,540 5.25%, 6/15/2024 (Insured; MBIA) 5,565,000 5,349,913 MICHIGAN--3.2% Michigan Hospital Finance Authority, HR: (Ascension Health Credit) 5.375%, 11/15/2033 6,500,000 (b,c) 6,481,020 Michigan Strategic Fund, Limited Obligation Revenue (Detroit Edison) 4.70%, 09/01/2001 5,000,000 5,003,750 Wayne County Building Authority 8%, 3/1/2017 (Prerefunded 3/1/2002) 1,500,000 (a) 1,596,510 NEW JERSEY--4.6% New Jersey Turnpile Authority, Turnpike Revenue: 6.847%, 1/1/2011 6,350,000 (b,c) 7,569,137 6%, 1/1/2011 (Insured; MBIA) 75,000 82,199 5.625%, 1/1/2015 (Insured; MBIA) 4,700,000 4,866,333 5.50%, 1/1/2030 (Insured; MBIA) 6,000,000 5,977,860 NEW MEXICO--.4% Farmington, PCR (Public Service Co.--San Juan Project) 6.375%, 4/1/2022 1,800,000 1,769,976 NEW YORK--12.5% New York City Industrial Development Agency, IDR, Refunding (Laguardia Associates LP Project) 5.80%, 11/1/2013 8,710,000 7,834,210 New York City Municipal Water Finance Authority, Water & Sewer Systems Revenue: 6.50%, 6/15/2031 2,000,000 2,200,560 6%, 6/15/2033 5,000,000 5,208,950 New York State Dormitory Authority, Revenues: 5.74%, 2/15/2013 (Insured; MBIA) 5,000,000 (b,c) 5,043,800 (Bronx/Lebanon Hospital) 5.20%, 2/15/2013 (Insured; MBIA) 2,860,000 2,872,527 Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (CONTINUED) New York State Dormitory Authority, Revenues (continued): (New York University): 5.75%, 7/1/2016 (Insured; MBIA) 2,300,000 2,450,788 6%, 7/1/2017 (Insured; MBIA) 3,500,000 3,803,170 New York State Energy Research and Development Authority, Electric Facilities Revenue (Long Island Lighting Co.): 7.15%, 9/1/2019 2,535,000 2,645,475 7.15%, 9/1/2019 (Prerefunded 6/15/2002) 1,115,000 (a) 1,180,216 7.15%, 6/1/2020 2,980,000 3,109,868 7.15%, 6/1/2020 (Prerefunded 6/15/2002) 1,020,000 (a) 1,079,660 7.15%, 12/1/2020 1,320,000 1,377,526 7.15%, 12/1/2020 (Prerefunded 6/15/2002) 3,680,000 (a) 3,895,243 7.15%, 2/1/2022 (Prerefunded 6/15/2002) 2,500,000 (a) 2,649,075 Port Authority of New York and New Jersey 5.35%, 9/15/2014 (Insured; FGIC) 1,655,000 1,679,626 Scotia Housing Authority, Housing Revenue (Coburg Village, Inc. Project) 6.10%, 7/1/2018 4,000,000 3,470,240 NORTH CAROLINA--1.9% Charlotte, Special Facilities Revenue (Charlotte/Douglas International Airport) 5.60%, 7/1/2027 5,000,000 3,719,350 North Carolina Eastern Municipal Power Agency, Power System Revenue 7%, 1/1/2013 3,500,000 3,893,365 OHIO--1.3% Ohio Water Development Authority, Pollution Control Facilites Revenue (Cleveland Electric) 6.10%, 8/1/2020 5,500,000 5,180,890 OKLAHOMA--1.8% Holdenville Industrial Authority, Correctional Facility Revenue: 6.60%, 7/1/2010 (Prerefunded 7/1/2006) 2,045,000 (a) 2,253,079 6.70%, 7/1/2015 (Prerefunded 7/1/2006) 4,625,000 (a) 5,118,256 PENNSYLVANIA--2.7% Blair County Hospital Authority, Revenue (Altoona Hospital) 6.375%, 7/1/2013 (Insured; AMBAC) 5,000,000 (b) 5,248,400 Montgomery County Higher Education and Health Authority First Mortgage Revenue (AHF/Montgomery, Inc. Project) 10.50%, 9/1/2020 3,370,000 3,490,680 Pennsylvania Intergovernmental Cooperative Authority Special Tax Revenue (Philadelphia Funding Program) 6.80%, 6/15/2022 (Prerefunded 6/15/2002) 2,000,000 (a) 2,074,640 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND--.8% Providence, Special Tax Increment Obligation 6.65%, 6/1/2016 3,000,000 3,107,970 TENNESSEE--2.5% Memphis Center Revenue Finance Corporation, Sports Facility Revenue (Memphis Redbirds) 6.50%, 9/1/2028 8,000,000 7,167,600 Shelby County Health Educational and Housing Facilities, Multi-Family Housing Board Revenue (Cameron Kirby) 7.25%, 7/1/2023 3,005,000 2,988,022 TEXAS--10.0% Alliance Airport Authority, Special Facilities Revenue 6.847%, 4/1/2021 2,500,000 (b,c) 2,440,650 (Federal Express Corp. Project) 6.375%, 4/1/2021 40,000 39,525 Brazo River Authority, PCR (Utilities Electric Company) 5.55%, 6/1/2030 (Insured; MBIA) 3,175,000 3,047,175 Dallas-Fort Worth International Airport Facility Improvement Corporation, Revenue: 5.95%, 11/1/2003 50,000 50,313 (American Airlines, Inc.): 6.242%, 5/1/2029 2,500,000 (b,c) 2,531,300 6.375%, 5/1/2035 7,150,000 6,970,106 Gulf Coast Waste Disposal Authority, Revenue (Waste Disposal--Valero Energy Corp.) 5.60%, 4/1/2032 6,000,000 5,050,080 Houston: Airport System Improvement Revenue (Special Facilities--Continental Airline Terminal) 6.125%, 7/15/2017 (Guaranteed; Continental Airline, Inc.) 5,425,000 4,970,982 Water & Sewer Systems Revenue 5.25%, 12/1/2030 (Insured; MBIA) 5,000,000 4,729,250 Rio Grande City Consolidated Independent School District Public Facilities Corporation, LR 6.75%, 7/15/2010 6,000,000 6,317,760 Texas Public Property Finance Corp., Revenue (Mental Health and Retardation Center) 8.20%, 10/1/2012 (Prerefunded 10/1/2002) 1,800,000 (a) 1,955,376 Tyler Health Facilities Development Corporation, HR (Mother Frances Hospital) 5.625%, 7/1/2013 2,680,000 2,359,150 Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ UTAH--2.8% Carbon County, SWDR: (East Carbon Development Corp.) 9%, 7/1/2012 3,700,000 3,778,995 (Sunnyside Cogeneration--A) 7.10%, 8/15/2023 7,450,000 7,082,939 (Sunnyside Cogeneration--B) Zero Coupon, 8/15/2024 2,320,000 379,691 VIRGINIA--2.5% Virginia Housing Development Authority, Commonwealth Mortgage 5.80%, 1/1/2018 8,180,000 8,268,508 West Point Industrial Development Authority, SWDR (Chesapeake Corp.) 6.375%, 3/1/2019 2,000,000 1,810,660 WEST VIRGINIA--2.6% Upshur County, SWDR (TJ International Project) 7%, 7/15/2025 7,000,000 7,156,380 West Virginia Hospital Finance Authority, HR (Charleston Area Medical Center) 6%, 9/1/2012 3,230,000 3,222,926 U.S. RELATED--6.2% Puerto Rico Commonwealth: 6.25%, 7/1/2013 (Insured; MBIA) 3,000,000 3,413,640 5.65%, 7/1/2015 (Insured; MBIA) 4,000,000 4,292,280 Public Improvement: 5.25%, 7/1/2013 (Insured; MBIA) 6,000,000 6,244,920 6.50%, 7/1/2014 (Insured; MBIA) 5,000,000 5,814,200 Zero Coupon, 7/1/2015 (Insured; MBIA) 2,400,000 1,122,000 Puerto Rico Telephone Authority, Revenue 6.639%, 1/25/2007 (Insured; MBIA, Prerefunded 1/1/2003) 3,950,000 (a,b) 4,152,435 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (cost $412,965,323) 101.5% 409,155,855 LIABILITIES, LESS CASH AND RECEIVABLES (1.5%) (6,096,136) NET ASSETS 100.0% 403,059,719 The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) Summary of Abbreviations AMBAC American Municipal Bond Assurance Corporation EDR Economic Development Revenue FGIC Financial Guaranty Insurance Company FSA Financial Security Assurance HR Hospital Revenue IDR Industrial Development Revenue LR Lease Revenue MBIA Municipal Bond Investors Assurance Insurance Corporation MFHR Multi-Family Housing Revenue MFMR Multi-Family Mortgage Revenue PCR Pollution Control Revenue SWDR Solid Waste Disposal Revenue
Summary of Combined Ratings (Unaudited) Fitch or Moody's or Standard & Poor's Value (%) - ------------------------------------------------------------------------------------------------------------------------------------ AAA Aaa AAA 40.5 AA Aa AA 10.2 A A A 6.6 BBB Baa BBB 13.0 BB Ba BB 4.3 B B B 3.1 Not Rated (e) Not Rated (e) Not Rated (e) 22.3 100.0 (A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING DATE. (B) INVERSE FLOATER SECURITY -- THE INTEREST RATE IS SUBJECT TO CHANGE PERIODICALLY. (C) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT OCTOBER 31, 2000, THESE SECURITIES AMOUNTED TO $32,603,746 OR 8.1% OF NET ASSETS. (D) NON-INCOME PRODUCING SECURITY; INTEREST PAYMENTS IN DEFAULT. (E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF ASSETS AND LIABILITIES October 31, 2000 (Unaudited) Cost Value - -------------------------------------------------------------------------------- ASSETS ($): Investments in securities--See Statement of Investments 412,965,323 409,155,855 Interest receivable 7,263,879 Receivable for investment securities sold 486,551 Receivable for shares of Beneficial Interest subscribed 45,007 Prepaid expenses 19,765 416,971,057 - -------------------------------------------------------------------------------- LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 302,359 Cash overdraft due to Custodian 8,738,929 Payable for investment securities purchased 4,766,658 Payable for shares of Beneficial Interest redeemed 40,806 Accrued expenses 62,586 13,911,338 - -------------------------------------------------------------------------------- NET ASSETS ($) 403,059,719 - -------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS ($): Paid-in capital 427,662,471 Accumulated net realized gain (loss) on investments (20,793,284) Accumulated net unrealized appreciation (depreciation) on investments--Note 4 (3,809,468) - -------------------------------------------------------------------------------- NET ASSETS ($) 403,059,719
NET ASSET VALUE PER SHARE Class A Class B Class C - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets ($) 351,210,518 47,413,037 4,436,164 Shares outstanding 27,017,878 3,646,335 340,733 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE PER SHARE ($) 13.00 13.00 13.02 SEE NOTES TO FINANCIAL STATEMENTS.
The Fund STATEMENT OF OPERATIONS Six Months Ended October 31, 2000 (Unaudited) - -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INTEREST INCOME 12,717,185 EXPENSES: Management fee--Note 3(a) 1,138,767 Shareholder servicing costs--Note 3(c) 653,017 Legal fees 184,144 Distribution fees--Note 3(b) 141,387 Custodian fees 22,230 Registration fees 19,871 Auditing fees 15,470 Prospectus and shareholders' reports 15,056 Trustees' fees and expenses--Note 3(d) 9,401 Loan commitment fees--Note 2 2,022 Miscellaneous 11,286 TOTAL EXPENSES 2,212,651 INVESTMENT INCOME--NET 10,504,534 - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($): Net realized gain (loss) on investments (3,415,021) Net unrealized appreciation (depreciation) on investments 11,187,093 NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 7,772,072 NET INCREASE NET ASSETS RESULTING FROM OPERATIONS 18,276,606 SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF CHANGES IN NET ASSETS Six Months Ended October 31, 2000 Year Ended (Unaudited) April 30, 2000 - -------------------------------------------------------------------------------- OPERATIONS ($): Investment income--net 10,504,534 24,824,900 Net realized gain (loss) on investments (3,415,021) (17,425,166) Net unrealized appreciation (depreciation) on investments 11,187,093 (34,930,839) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 18,276,606 (27,531,105) - -------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS FROM ($): Investment income--net: Class A shares (9,232,908) (20,911,012) Class B shares (1,170,674) (3,632,920) Class C shares (100,952) (280,968) Net realized gain on investments: Class A shares -- (4,812,233) Class B shares -- (821,235) Class C shares -- (60,751) TOTAL DIVIDENDS (10,504,534) (30,519,119) - -------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS ($): Net proceeds from shares sold: Class A shares 58,261,175 119,058,167 Class B shares 3,794,928 9,353,802 Class C shares 3,228,996 3,197,754 Dividends reinvested: Class A shares 5,186,707 15,209,492 Class B shares 585,194 2,380,084 Class C shares 49,430 108,996 Cost of shares redeemed: Class A shares (80,563,136) (157,637,399) Class B shares (10,871,872) (61,408,528) Class C shares (3,353,507) (6,196,568) INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS (23,682,085) (75,934,200) TOTAL INCREASE (DECREASE) IN NET ASSETS (15,910,013) (133,984,424) - -------------------------------------------------------------------------------- NET ASSETS ($): Beginning of Period 418,969,732 552,954,156 END OF PERIOD 403,059,719 418,969,732 SEE NOTES TO FINANCIAL STATEMENTS. The Fund STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) Six Months Ended October 31, 2000 Year Ended (Unaudited) April 30, 2000 - -------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: CLASS A( A) Shares sold 4,535,378 8,947,487 Shares issued for dividends reinvested 403,088 1,155,931 Shares redeemed (6,269,758) (11,919,959) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,331,292) (1,816,541) - -------------------------------------------------------------------------------- CLASS B( A) Shares sold 295,509 693,475 Shares issued for dividends reinvested 45,489 179,946 Shares redeemed (847,372) (4,575,315) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (506,374) (3,701,894) - -------------------------------------------------------------------------------- CLASS C Shares sold 251,003 243,277 Shares issued for dividends reinvested 3,834 8,306 Shares redeemed (260,392) (469,388) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (5,555) (217,805) (A) DURING THE PERIOD ENDED OCTOBER 31, 2000, 339,272 CLASS B SHARES REPRESENTING $4,360,634 WERE AUTOMATICALLY CONVERTED TO 339,484 CLASS A SHARES AND DURING THE PERIOD ENDED APRIL 30, 2000, 2,612,242 CLASS B SHARES REPRESENTING $34,929,103 WERE AUTOMATICALLY CONVERTED TO 2,613,946 CLASS A SHARES. SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have derived from the fund's financial statements. Six Months Ended October 31, 2000 Year Ended April 30, ----------------------------------------- CLASS A SHARES (Unaudited) 2000 1999 1998 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 12.75 14.33 14.69 14.11 13.85 13.86 Investment Operations: Investment income--net .33 .70 .72 .79 .82 .86 Net realized and unrealized gain (loss) on investments .25 (1.42) (.15) .66 .27 (.01) Total from Investment Operations .58 (.72) .57 1.45 1.09 .85 Distributions: Dividends from investment income--net (.33) (.70) (.72) (.79) (.82) (.86) Dividends from net realized gain on investments -- (.16) (.21) (.08) (.01) -- Total Distributions (.33) (.86) (.93) (.87) (.83) (.86) Net asset value, end of period 13.00 12.75 14.33 14.69 14.11 13.85 - ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) (A) 9.16(b) (5.01) 3.96 10.52 8.03 6.08 - ------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets 1.00(b) .93 .91 .91 .91 .92 Ratio of net investment income to average net assets 5.13(b) 5.28 4.96 5.42 5.84 5.98 Portfolio Turnover Rate 37.09(c) 70.39 46.84 26.33 28.17 36.59 - ------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 351,211 361,567 432,276 447,869 457,327 474,044 (A) EXCLUSIVE OF SALES CHARGE. (B) ANNUALIZED. (C) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. The Fund FINANCIAL HIGHLIGHTS (CONTINUED) Six Months Ended October 31, 2000 Year Ended April 30, ----------------------------------------- CLASS B SHARES (Unaudited) 2000 1999 1998 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 12.76 14.33 14.69 14.11 13.85 13.86 Investment Operations: Investment income--net .30 .63 .65 .72 .75 .78 Net realized and unrealized gain (loss) on investments .24 (1.41) (.15) .66 .27 (.01) Total from Investment Operations .54 (.78) .50 1.38 1.02 .77 Distributions: Dividends from investment income--net (.30) (.63) (.65) (.72) (.75) (.78) Dividends from net realized gain on investments -- (.16) (.21) (.08) (.01) -- Total Distributions (.30) (.79) (.86) (.80) (.76) (.78) Net asset value, end of period 13.00 12.76 14.33 14.69 14.11 13.85 - ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%)(A) 8.73(b) (5.51) 3.43 9.95 7.49 5.53 - ------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets 1.51(b) 1.45 1.42 1.42 1.43 1.43 Ratio of net investment income to average net assets 4.71(b) 4.71 4.44 4.89 5.33 5.46 Portfolio Turnover Rate 37.09(c) 70.39 46.84 26.33 28.17 36.59 - ------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 47,413 52,979 112,583 119,457 109,485 106,931 (A) EXCLUSIVE OF SALES CHARGE. (B) ANNUALIZED. (C) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. Six Months Ended October 31, 2000 Year Ended April 30, ----------------------------------------- CLASS C SHARES (Unaudited) 2000 1999 1998 1997 1996(a) - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 12.77 14.35 14.71 14.12 13.87 14.28 Investment Operations: Investment income--net .29 .60 .61 .68 .72 .60 Net realized and unrealized gain (loss) on investments .25 (1.42) (.15) .67 .26 (.41) Total from Investment Operations .54 (.82) .46 1.35 .98 .19 Distributions: Dividends from investment income--net (.29) (.60) (.61) (.68) (.72) (.60) Dividends from net realized gain on investments -- (.16) (.21) (.08) (.01) -- Total Distributions (.29) (.76) (.82) (.76) (.73) (.60) Net asset value, end of period 13.02 12.77 14.35 14.71 14.12 13.87 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%)(B) 8.41(c) (5.71) 3.16 9.73 7.16 1.56(c) - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets 1.74(c) 1.68 1.67 1.69 1.64 1.77(c) Ratio of net investment income to average net assets 4.41(c) 4.52 4.11 4.55 5.01 4.84(c) Portfolio Turnover Rate 37.09(d) 70.39 46.84 26.33 28.17 36.59 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 4,436 4,424 8,095 3,019 1,049 340 (A) FROM JULY 13, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 1996. (B) EXCUSIVE OF SALES CHARGE. (C) ANNUALIZED. (D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS. The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1--Significant Accounting Policies: Dreyfus Premier Municipal Bond Fund (the "fund" ) is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified open-end management investment company. The fund's investment objective is to maximize current income exempt from Federal income tax to the extent consistent with the preservation of capital. The Dreyfus Corporation (the "Manager") serves as the fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A, which is a wholly-owned subsidiary of Mellon Financial Corporation Dreyfus Service Corporation, (the "Distributor"), a wholly-owned subsidiary of the Manager, is the distributor of the fund's shares. The fund is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Class A, Class B and Class C. Class A shares are subject to a sales charge imposed at the time of purchase, Class B shares are subject to a contingent deferred sales charge ("CDSC") imposed on Class B share redemptions made within six years of purchase (five years for shareholders beneficially owning Class B shares on November 30, 1996) and Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Class B shares automatically convert to Class A shares after six years. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. The fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. (a) Portfolio valuation: Investments in securities (excluding options and financial futures on municipal and U.S. treasury securities) are valued each business day by an independent pricing service ("Service") approved by the Board of Trustees. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are val ued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service based on methods which include consideration of: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Options and financial futures on municipal and U.S. treasury securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Investments not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. (b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Interest income, adjusted for amortization of premiums and original issue discounts on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Under the terms of the custody agreement, the fund receives net earnings credits based on available cash balances left on deposit. (c) Dividends to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gain, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the " Code" ). To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gain. The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) (d) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, which can distribute tax exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all Federal income and excise taxes. The fund has an unused capital loss carryover of approximately $11,183,000 available for Federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to April 30, 2000. This amount is calculated based on Federal income tax regulations which may differ from financial reporting in accordance with generally accepted accounting principles.If not applied, the carryover expires in fiscal 2008. NOTE 2--Bank Line of Credit: The fund participates with other Dreyfus-managed funds in a $500 million redemption credit facility (the "Facility" ) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund at rates based on prevailing market rates in effect at the time of the borrowings. During the period ended October 31, 2000, the fund did not borrow under the Facility. NOTE 3--Management Fee and Other Transactions With Affiliates: (a) Pursuant to a management agreement with the Manager, the management fee is computed at the annual rate of .55 of 1% of the value of the Trust's average daily net assets and is payable monthly. The Distributor retained $589 during the period ended October 31, 2000 from commissions earned on sales of the fund's shares. (b) Under the Distribution plan (the "Plan") adopted pursuant to Rule 12b-1 under the Act, Class B and Class C shares pay the Distributor for distributing their shares at an annual rate of .50 of 1% of the value of the average daily net assets of Class B shares and .75 of 1% of the value of the average daily net assets of Class C shares. During the period ended October 31, 2000, Class B and Class C shares were charged $124,227 and $17,160, respectively, pursuant to the Plan. (c) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay the Distributor at an annual rate of .25 of 1% of the value of the average daily net assets of their shares 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 shareholder accounts. The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended October 31, 2000, Class A, Class B and Class C shares were charged $449,788, $62,113 and $5,720, respectively, pursuant to the Shareholder Services Plan. The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended October 31, 2000, the fund was charged $125,008 pursuant to the transfer agency agreement. (d) Each Board member also serves as a Board member of other funds within the Dreyfus complex (collectively, the "Fund Group"). Each Board member who is not an "affiliated person" as defined in the Act receives an annual fee of $50,000 and an attendance fee of $6,500 for each meeting attended and $500 for telephone meetings.These fees are allocated among the funds in the Fund Group. The Chairman of the Board receives an additional 25% of such compensation. Subject to the Trust' s Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the fund's annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status. The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) NOTE 4--Securities Transactions: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended October 31, 2000, amounted to $150,335,368 and $152,671,478, respectively. At October 31, 2000, accumulated net unrealized depreciation on investments was $3,809,468, consisting of $13,191,582 gross unrealized appreciation and $17,001,050 gross unrealized depreciation. At October 31, 2000, 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). For More Information Dreyfus Premier Municipal Bond Fund 200 Park Avenue New York, NY 10166 Manager The Dreyfus Corporation 200 Park Avenue New York, NY 10166 Custodian The Bank of New York 100 Church Street New York, NY 10286 Transfer Agent & Dividend Disbursing Agent Dreyfus Transfer, Inc. P.O. Box 9671 Providence, RI 02940 Distributor Dreyfus Service Corporation 200 Park Avenue New York, NY 10166 To obtain information: BY TELEPHONE Call your financial representative or 1-800-554-4611 BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss Boulevard Uniondale, NY 11556-0144 (c) 2000 Dreyfus Service Corporation 022SA0010 -----END PRIVACY-ENHANCED MESSAGE-----