N-30D 1 annualreport.txt ANNUAL REPORT Dreyfus Premier Municipal Bond Fund ANNUAL REPORT April 30, 2001 (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 Fund Performance 8 Statement of Investments 16 Statement of Assets and Liabilities 17 Statement of Operations 18 Statement of Changes in Net Assets 20 Financial Highlights 23 Notes to Financial Statements 28 Report of Independent Auditors 29 Important Tax Information FOR MORE INFORMATION --------------------------------------------------------------------------- Back Cover The Fund Dreyfus Premier Municipal Bond Fund LETTER FROM THE PRESIDENT Dear Shareholder: We are pleased to present this annual report for Dreyfus Premier Municipal Bond Fund, covering the 12-month period from May 1, 2000 through April 30, 2001. 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. Municipal bonds generally provided attractive returns over the 12-month reporting period. Slowing economic growth and lower short-term interest rates helped boost the value of tax-exempt bonds, as did robust demand from investors fleeing the uncertainty of a falling stock market. In our view, these divergent results indicate the importance of diversifying among different types of investments. We believe that a diversified investment approach can continue to serve investors well, which is why we continually stress the importance of diversification, a basic tenet of investing. We encourage you to contact your financial advisor for more information about ways to refine your investment strategies in the current environment. Thank you for your continued confidence and support. Sincerely, Stephen E. Canter President and Chief Investment Officer The Dreyfus Corporation May 14, 2001 DISCUSSION OF FUND PERFORMANCE Samuel Weinstock, Portfolio Manager How did Dreyfus Premier Municipal Bond Fund perform during the period? For the 12-month period ended April 30, 2001, the fund's Class A shares produced a total return of 8.42%, its Class B shares produced a total return of 7.93% and its Class C shares produced a total return of 7.63%.(1) In comparison, the Lipper General Municipal Debt Funds category average produced a total return of 9.13% for the same period.(2) We attribute the market's strong performance to two factors. First, municipal bonds generally rallied as interest rates fell in a weakening economy. Second, demand for municipal bonds surged from investors fleeing a declining stock market. However, the fund's performance was held back slightly by our efforts to rebalance its holdings, which we believe should better position the fund for the future. 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? When the reporting period began, an overheated U.S. economy led to inflation concerns and a 50 basis-point increase in interest rates by the Federal Reserve Board (the "Fed") in late May 2000. During the summer, however, evidence emerged that the Fed's rate hikes were having the desired effect of slowing the economy. As a result, tax-exempt yields declined modestly, even though the Fed did not change interest rates during the remainder of 2000. However, at the start of January 2001-- faced with the risk of a recession -- the Fed moved aggressively to stimulate economic growth by cutting interest rates 50 basis points. The Fed then cut interest rates three more times by 50 basis points each at the end of January, in March, and again in early April. Except for seasonal back-ups related to the payment of income taxes by individuals, yields of tax-exempt bonds generally moved lower in this environment. A substantial part of the municipal bond market's performance was also the result of higher demand from individual investors fleeing the volatility of the stock market. In this environment, we attempted to rebalance the fund for better performance in a slower economy. As part of that process, we sold some of the fund's longer term holdings, especially those from corporate issuers, such as airlines, that we believed might be negatively affected by an economic slowdown. We generally redeployed those assets to high quality bonds. In fact, the percentage of the fund' s assets currently invested in triple-A rated bonds is larger than ever We attempted to diversify assets over a greater number of issuers for broader diversification. We also diversified the fund's holdings more broadly across the short-, intermediate- and long-term maturity ranges. These changes caused the fund' s average duration -- a measure of sensitivity to changing interest rates -- to decline modestly to a level in line with the average for its peer group In addition, the fund benefited from the recovery of a few bonds from previously troubled issuers. These situations were either favorably resolved through financial workouts or a better fiscal environment for their issuers. What is the fund's current strategy? Our rebalancing strategy should help us remain flexible in an uncertain economic environment. As of the end of the reporting period, interest rates continued to trend downwards in a relatively weak economy. However, after four rate cuts in as many months, we began to detect signs that the start of an economic recovery may be imminent. If this proves to be the case, interest rates may already be near their lows, an environment in which the fund's holdings of longer term bonds should drive performance. On the other hand, if the economy deteriorates further, the Fed is likely to continue reducing short-term interest rates. Under this scenario, the fund' s holdings of triple-A rated and shorter term bonds should benefit performance, in our opinion. May 14, 2001 (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 FUND PERFORMANCE Comparison of change in value of $10,000 investment in Dreyfus Premier Municipal Bond Fund Class A shares and the Lehman Brothers Municipal Bond Index ((+)) SOURCE: LIPPER INC. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS A SHARES OF DREYFUS PREMIER MUNICIPAL BOND FUND (THE "FUND") ON 4/30/91 TO A $10,000 INVESTMENT MADE IN THE LEHMAN BROTHERS MUNICIPAL BOND INDEX (THE "INDEX") ON THAT DATE. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS B AND CLASS C SHARES WILL VARY FROM THE PERFORMANCE OF CLASS A SHARES SHOWN ABOVE DUE TO DIFFERENCES IN CHARGES AND EXPENSES. THE FUND INVESTS PRIMARILY IN MUNICIPAL SECURITIES AND ITS PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM INITIAL SALES CHARGE ON CLASS A SHARES AND ALL OTHER APPLICABLE FEES AND EXPENSES. THE INDEX, UNLIKE THE FUND, IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR THE LONG-TERM, INVESTMENT-GRADE TAX-EXEMPT BOND MARKET, CALCULATED BY USING MUNICIPAL BONDS SELECTED TO BE REPRESENTATIVE OF THE MUNICIPAL MARKET OVERALL. THE INDEX DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES WHICH CAN CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR UNDERPERFORMING THE FUND. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
Average Annual Total Returns AS OF 4/30/01 Inception From Date 1 Year 5 Years 10 Years Inception ------------------------------------------------------------------------------------------------------------------------------------ CLASS A SHARES WITH MAXIMUM SALES CHARGE (4.5%) 11/26/86 3.55% 4.08% 5.93% -- WITHOUT SALES CHARGE 11/26/86 8.42% 5.03% 6.42% -- CLASS B SHARES WITH APPLICABLE REDEMPTION CHARGE ((+)) 1/15/93 3.93% 4.19% -- 4.99% ((+)(+)) WITHOUT REDEMPTION 1/15/93 7.93% 4.51% -- 4.99% ((+)(+)) CLASS C SHARES WITH APPLICABLE REDEMPTION CHARGE ((+)(+)(+)) 7/13/95 6.63% 4.24% -- 3.87% WITHOUT REDEMPTION 7/13/95 7.63% 4.24% -- 3.87% PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%. AFTER SIX YEARS CLASS B SHARES CONVERT TO CLASS A SHARES. ((+)(+)) ASSUMES THE CONVERSION OF CLASS B SHARES TO CLASS A SHARES AT THE END OF THE SIXTH YEAR FOLLOWING THE DATE OF PURCHASE. ((+)(+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1% FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE. The Fund
STATEMENT OF INVESTMENTS April 30, 2001 Principal LONG-TERM MUNICIPAL INVESTMENTS--97.6% Amount ($) Value ($) ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA--2.1% University of Alabama, HR: 5.75%, 9/1/2020 (Insured; MBIA) 3,000,000 3,088,080 5.75%, 11/15/2029 (Insured; MBIA) 5,000,000 5,235,350 CALIFORNIA--5.3% California: 5.625%, 5/1/2018 5,550,000 5,695,132 5.25%, 10/1/2024 50,000 48,394 6.325%, 10/1/2024 5,000,000 (b,c) 4,678,950 California Public Works Board, LR (Dept. of Corrections Corcoran) 5.50%, 1/1/2017 (Insured; AMBAC) 5,000,000 5,098,750 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue 6%, 1/1/2034 5,000,000 5,525,150 COLORADO--9.9% Arapahoe County Capital Improvement Trust Fund, Highway Revenue (E-470 Project): Zero Coupon, 8/31/2005 2,530,000 2,116,573 Zero Coupon, 8/31/2007 (Prerefunded 8/31/2005) 4,000,000 (a) 2,986,320 7%, 8/31/2026 (Prerefunded 8/31/2005) 11,000,000 (a) 12,671,340 Dawson Ridge, Metropolitan District Number 1 Zero Coupon, 10/1/2017 9,930,000 3,341,246 Denver City and County, Airport Revenue: 6%, 11/15/2017 (Insured; AMBAC) 5,000,000 5,268,900 7.50%, 11/15/2023 9,715,000 10,908,488 7.50%, 11/15/2023 (Prerefunded 11/15/2004) 2,060,000 (a) 2,347,473 CONNECTICUT--6.3% Connecticut: 5.75%, 6/15/2011 100,000 109,460 7.436%, 6/15/2011 4,000,000 (b,c) 4,756,840 Airport Revenue (Bradley International Airport) 5.125%, 10/1/2013 (Insured; FGIC) 3,000,000 2,840,910 Connecticut Development Authority, PCR (Connecticut Light & Power) 5.85%, 9/1/2028 7,700,000 7,565,327 Connecticut Housing Finance Authority 5.85%, 5/15/2031 2,500,000 2,538,500 Mashantucket Western Pequot Tribe, Special Revenue 5.75%, 9/1/2027 8,000,000 (c) 7,587,440 DISTRICT OF COLUMBIA--1.3% District of Columbia Tobacco Settlement Financing Corporation 6.75%, 5/15/2040 5,000,000 5,099,200 Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) ------------------------------------------------------------------------------------------------------------------------------------ DELAWARE--1.0% Delaware Housing Authority, MFMR 7%, 5/1/2025 3,725,000 3,908,531 FLORIDA--1.3% Miami-Dade County, Water & Sewer Revenue 5%, 10/1/2029 3,000,000 2,819,910 Santa Rosa Bay Bridge Authority, Revenue 6.25%, 7/1/2028 2,900,000 2,558,960 GEORGIA--1.3% Georgia 5.25%, 7/1/2017 5,000,000 5,074,150 ILLINOIS--4.0% Carol Stream, First Mortgage Revenue (Windsor Park Manor Project) 6.50%, 12/1/2007 2,000,000 2,012,180 Chicago O'Hare International Airport, Special Facility Revenue (United Airlines Project): 5.20%, 4/1/2011 5,500,000 4,986,630 5.80%, 11/1/2035 3,500,000 3,497,725 East Chicago, PCR (Inland Steel Co. Project) 7.125%, 6/1/2007 3,000,000 2,554,020 Illinois Development Finance Authority, Revenue (Community Rehabilitation Providers Facility): 8.75%, 3/1/2010 142,000 142,963 8.25%, 8/1/2012 2,735,000 2,822,958 INDIANA--2.0% Indiana Development Finance Authority, Exempt Facilities Revenue (Inland Steel) 5.75%, 10/1/2011 11,500,000 7,981,805 KENTUCKY--.1% Perry County, SWDR (TJ International Project) 6.55%, 4/15/2027 250,000 256,290 LOUISIANA--1.1% Louisiana Housing Finance Agency, MFHR (LaBelle Projects) 9.75%, 10/1/2020 4,015,000 4,383,778 MARYLAND--.5% Maryland Energy Financing Administration, SWDR (Wheelabrator Water Projects) 6.45%, 12/1/2016 2,100,000 2,162,055 MASSACHUSETTS--5.7% Massachusetts Industrial Finance Agency: Health Care Facility Revenue (Metro Health Foundation, Inc. Project) 6.75%, 12/1/2027 8,000,000 7,111,920 The Fund STATEMENT OF INVESTMENTS (CONTINUED) Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS (CONTINUED) Massachusetts Industrial Finance Agency (continued): Water Treatment Revenue (American Hingham) 6.95%, 12/1/2035 2,640,000 2,709,300 Massachusetts Turnpike Authority, Metropolitan Highway Systems Revenue 5%, 1/1/2039 (Insured; MBIA) 5,000,000 4,527,200 Route 3 North Transportation Improvement Association, LR: 5.75%, 6/15/2017 (Insured; MBIA) 3,000,000 3,150,720 5.25%, 6/15/2024 (Insured; MBIA) 5,565,000 5,473,178 MICHIGAN--1.6% Michigan Hospital Finance Authority, HR (Ascension Health Credit) 5.375%, 11/15/2033 6,500,000 6,590,610 MISSISSIPPI--.7% Mississippi Business Finance Corporation, PCR (System Energy Resources, Inc.) 5.90%, 5/1/2022 3,000,000 2,734,680 MISSOURI--.6% Saint Louis Industrial Development Authority (Saint Louis Convention) 7.25%, 12/15/2035 2,500,000 2,599,300 NEW JERSEY--7.4% New Jersey Economic Development Authority, Revenue: 6.97%, Series A, 6/15/2016 2,495,000 (b,c) 2,626,811 6.97%, Series B, 6/15/2016 2,495,000 (b,c) 2,594,875 6.25%, 9/15/2019 5,750,000 5,457,957 (School Facilities- Construction 2001): 5.25%, 6/15/2015 (Insured; AMBAC) 10,000 10,264 5.25%, 6/15/2015 (Insured; AMBAC) 10,000 10,200 New Jersey Turnpike Authority, Turnpike Revenue: 7.453%, 1/1/2011 6,350,000 (b,c) 7,813,611 6%, 1/1/2011 (Insured; MBIA) 75,000 83,643 5.625%, 1/1/2015 (Insured; MBIA) 4,700,000 4,963,482 5.50%, 1/1/2030 (Insured; MBIA) 6,000,000 6,125,940 NEW MEXICO--.5% Farmington, PCR (Public Service Co.--San Juan Project) 6.375%, 4/1/2022 1,800,000 1,805,526 NEW YORK--8.5% New York City Industrial Development Agency, IDR (Laguardia Associates LP Project) 5.80%, 11/1/2013 4,710,000 4,249,597 Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (CONTINUED) New York City Municipal Water Finance Authority, Water & Sewer Systems Revenue: 6.50%, 6/15/2031 2,000,000 2,356,760 6%, 6/15/2033 5,000,000 5,382,850 New York State Dormitory Authority, Revenues (New York University): 5.75%, 7/1/2016 (Insured; MBIA) 2,300,000 2,485,541 6%, 7/1/2017 (Insured; MBIA) 3,500,000 3,874,430 New York State Energy Research and Development Authority, Electric Facilities Revenue (Long Island Lighting Co.): 7.15%, 9/1/2019 (Prerefunded 6/15/2002) 1,115,000 (a) 1,180,584 7.15%, 6/1/2020 2,980,000 3,118,630 7.15%, 12/1/2020 1,320,000 1,381,406 Port Authority of New York and New Jersey: 5.35%, 9/15/2014 (Insured; FGIC) 1,655,000 1,711,121 5%, 7/15/2028 5,000,000 4,784,750 Scotia Housing Authority, Housing Revenue (Coburg Village, Inc. Project) 6.10%, 7/1/2018 4,000,000 3,412,360 NORTH CAROLINA--1.4% Charlotte, Special Facilities Revenue (Charlotte/Douglas International Airport) 5.60%, 7/1/2027 2,095,000 1,566,033 North Carolina Eastern Municipal Power Agency, Power System Revenue 7%, 1/1/2013 3,500,000 3,952,235 OHIO--2.3% Cleveland, Airport System Revenue 5%, 1/1/2031 (Insured; FSA) 4,000,000 3,754,840 Ohio Water Development Authority, Pollution Control Facilites Revenue (Cleveland Electric) 6.10%, 8/1/2020 5,500,000 5,478,385 OKLAHOMA--1.9% Holdenville Industrial Authority, Correctional Facility Revenue: 6.60%, 7/1/2010 (Prerefunded 7/1/2006) 2,045,000 (a) 2,305,308 6.70%, 7/1/2015 (Prerefunded 7/1/2006) 4,625,000 (a) 5,235,037 PENNSYLVANIA--3.5% Blair County Hospital Authority, Revenue (Altoona Hospital) 6.375%, 7/1/2013 (Insured; AMBAC) 5,000,000 (b) 5,268,250 Montgomery County Higher Education and Health Authority First Mortgage Revenue (AHF/Montgomery, Inc. Project) 10.50%, 9/1/2020 3,370,000 3,457,957 The Fund STATEMENT OF INVESTMENTS (CONTINUED) Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA (CONTINUED) Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue (Amtrak): 6.50%, 11/1/2016 650,000 676,696 6.375%, 11/1/2041 2,500,000 2,501,950 Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue (Philadelphia Funding Program) 6.80%, 6/15/2022 (Prerefunded 6/15/2002) 2,000,000 (a) 2,077,220 RHODE ISLAND--.8% Providence, Special Tax Increment Obligation 6.65%, 6/1/2016 3,000,000 3,144,840 SOUTH CAROLINA--1.7% Tobacco Settlement Revenue Management Authority, Tobacco Settlement Revenue 6.375%, 5/15/2028 7,000,000 6,964,020 TENNESSEE--2.6% Memphis Center Revenue Finance Corporation, Sports Facility Revenue (Memphis Redbirds) 6.50%, 9/1/2028 8,000,000 7,423,360 Shelby County Health Educational and Housing Facilities, Multi-Family Housing Board Revenue (Cameron Kirby) 7.25%, 7/1/2023 3,005,000 2,994,723 TEXAS--8.7% Alliance Airport Authority, Special Facilities Revenue 7.765%, 4/1/2021 2,500,000 (b,c) 2,537,150 (Federal Express Corp. Project) 6.375%, 4/1/2021 40,000 40,364 Brazos River Authority, PCR (Utilities Electric Company) 5.55%, 6/1/2030 (Insured; MBIA) 3,175,000 3,163,475 Dallas-Fort Worth International Airport Facility Improvement Corporation, Revenue: 5.95%, 11/1/2003 50,000 50,792 (American Airlines, Inc.): 6.242%, 5/1/2029 2,500,000 (b,c) 2,575,700 6.375%, 5/1/2035 5,900,000 5,891,858 Gulf Coast Waste Disposal Authority, Revenue (Waste Disposal--Valero Energy Corp.) 5.60%, 4/1/2032 6,000,000 5,198,580 Houston, Water & Sewer Systems Revenue 5.25%, 12/1/2030 (Insured; MBIA) 5,000,000 4,807,550 Rio Grande City Consolidated Independent School District Public Facilities Corporation. LR 6.75%, 7/15/2010 6,000,000 6,375,540 Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (CONTINUED) Texas Public Property Finance Corp., Revenue (Mental Health and Retardation Center) 8.20%, 10/1/2012 (Prerefunded 10/1/2002) 1,800,000 (a) 1,951,866 Tyler Health Facilities Development Corporation, HR (Mother Frances Hospital) 5.625%, 7/1/2013 2,680,000 2,371,130 UTAH--2.9% Carbon County, SWDR: (East Carbon Development Corp.) 9%, 7/1/2012 3,700,000 3,775,258 (Sunnyside Cogeneration--A) 7.10%, 8/15/2023 7,450,000 7,490,453 (Sunnyside Cogeneration--B) Zero Coupon, 8/15/2024 2,320,000 441,682 VIRGINIA--2.6% Chesapeake Bay Bridge & Tunnel Commission, District Revenue 5.50%, 7/1/2025 (Insured; MBIA) 2,000,000 2,069,260 Virginia Housing Development Authority, Commonwealth Mortgage 5.80%, 1/1/2018 6,180,000 6,351,001 West Point Industrial Development Authority, SWDR (Chesapeake Corp.) 6.375%, 3/1/2019 2,000,000 1,801,260 WEST VIRGINIA--1.7% Upshur County, SWDR (TJ International Project) 7%, 7/15/2025 3,500,000 3,675,980 West Virginia Hospital Finance Authority, HR (Charleston Area Medical Center) 6%, 9/1/2012 3,030,000 3,113,083 U.S. RELATED--6.3% Puerto Rico Commonwealth: 6.25%, 7/1/2013 (Insured; MBIA) 3,000,000 3,449,580 5.65%, 7/1/2015 (Insured; MBIA) 4,000,000 4,339,880 Public Improvement: 5.25%, 7/1/2013 (Insured; MBIA) 6,000,000 6,339,900 6.50%, 7/1/2014 (Insured; MBIA) 5,000,000 5,857,050 Zero Coupon, 7/1/2015 (Insured; MBIA) 2,400,000 1,179,312 Puerto Rico Telephone Authority, Revenue 7.013%, 1/25/2007 (Insured; MBIA, Prerefunded 1/1/2003) 3,950,000 (a,b) 4,236,375 TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $384,862,960) 390,881,957 The Fund STATEMENT OF INVESTMENTS (CONTINUED) Principal SHORT-TERM MUNICIPAL INVESTMENTS--.8% Amount ($) Value ($) ------------------------------------------------------------------------------------------------------------------------------------ Port Authority of New York and New Jersey, VRDN Special Obligation Revenue 4.25% (cost $3,200,000) 3,200,000 (d) 3,200,000 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (cost $388,062,960) 98.4% 394,081,957 CASH AND RECEIVABLES (NET) 1.6% 6,323,272 NET ASSETS 100.0% 400,405,229
Summary of Abbreviations AMBAC American Municipal Bond Assurance Corporation 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 VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited) Fitch or Moody's or Standard & Poor's Value (%) ------------------------------------------------------------------------------------------------------------------------------------ AAA Aaa AAA 42.9 AA Aa AA 11.0 A A A 8.3 BBB Baa BBB 17.4 BB Ba BB 1.8 B B B 2.7 F-1+, F-1 VMIG1, MIG1, P1 SP1, A1 .8 Not Rated (e) Not Rated (e) Not Rated (e) 15.1 100.0
(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 APRIL 30, 2001, THESE SECURITIES AMOUNTED TO $35,171,378 OR 8.8% OF NET ASSETS. (D) VARIABLE RATE SECURITY-INTEREST RATE SUBJECT TO PERIODIC CHANGE. (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. (F) AT APRIL 30, 2001, THE FUND HAD $114,802,570 (28.7% OF NET ASSETS) INVESTED IN SECURITIES WHOSE PAYMENT OF PRINCIPAL AND INTEREST IS DEPENDENT UPON REVENUES GENERATED FROM TRANSPORTATION PROJECTS. SEE NOTES TO FINANCIAL STATEMENTS. The Fund STATEMENT OF ASSETS AND LIABILITIES April 30, 2001 Cost Value -------------------------------------------------------------------------------- ASSETS ($): Investments in securities -See Statement of Investments 388,062,960 394,081,957 Cash 928,139 Interest receivable 6,842,204 Receivable for shares of Beneficial Interest subscribed 338,090 Prepaid expenses 20,494 402,210,884 -------------------------------------------------------------------------------- LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 307,171 Payable for shares of Beneficial Interest redeemed 1,356,983 Accrued expenses 141,501 1,805,655 -------------------------------------------------------------------------------- NET ASSETS ($) 400,405,229 -------------------------------------------------------------------------------- COMPOSITION IF NET ASSETS ($): Paid-in capital 420,565,505 Accumulated net realized gain (loss) on investments (26,179,273) Accumulated net unrealized appreciation (depreciation) on investments-Note 4 6,018,997 -------------------------------------------------------------------------------- NET ASSETS ($) 400,405,229
NET ASSET VALUE PER SHARE Class A Class B Class C ------------------------------------------------------------------------------------------------------------------------------------ Net Assets ($) 349,344,934 47,025,758 4,034,537 Shares outstanding 26,586,670 3,577,781 306,559 ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE PER SHARE ($) 13.14 13.14 13.16
SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF OPERATIONS Year Ended April 30, 2001 -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INTEREST INCOME 24,758,790 EXPENSES: Management fee--Note 3(a) 2,243,231 Shareholder servicing costs--Note 3(c) 1,277,843 Legal fees 283,335 Distribution fees--Note 3(b) 273,662 Custodian fees 44,803 Registration fees 39,958 Auditing fees 30,547 Prospectus and shareholders' reports 28,451 Trustees' fees and expenses--Note 3(d) 17,209 Loan commitment fees--Note 2 4,469 Miscellaneous 19,159 TOTAL EXPENSES 4,262,667 INVESTMENT INCOME-NET 20,496,123 -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-NOTE 4 ($): Net realized gain (loss) on investments (8,801,010) Net unrealized appreciation (depreciation) on investments 21,015,558 NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 12,214,548 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 32,710,671 SEE NOTES TO FINANCIAL STATEMENTS. The Fund STATEMENT OF CHANGES IN NET ASSETS Year Ended April 30, ----------------------------------- 2001 2000 -------------------------------------------------------------------------------- OPERATIONS ($): Investment income-net 20,496,123 24,824,900 Net realized gain (loss) on investments (8,801,010) (17,425,166) Net unrealized appreciation (depreciation) on investments 21,015,558 (34,930,839) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 32,710,671 (27,531,105) -------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS FROM ($): Investment income-net: Class A shares (18,074,829) (20,911,012) Class B shares (2,231,704) (3,632,920) Class C shares (189,590) (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 (20,496,123) (30,519,119) -------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS ($): Net proceeds from shares sold: Class A shares 132,537,116 119,058,167 Class B shares 9,420,935 9,353,802 Class C shares 3,915,107 3,197,754 Dividends reinvested: Class A shares 10,154,427 15,209,492 Class B shares 1,117,924 2,380,084 Class C shares 89,797 108,996 Cost of shares redeemed: Class A shares (165,565,861) (157,637,399) Class B shares (17,914,938) (61,408,528) Class C shares (4,533,558) (6,196,568) INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS (30,779,051) (75,934,200) TOTAL INCREASE (DECREASE) IN NET ASSETS (18,564,503) (133,984,424) -------------------------------------------------------------------------------- NET ASSETS ($): Beginning of Period 418,969,732 552,954,156 END OF PERIOD 400,405,229 418,969,732 SEE NOTES TO FINANCIAL STATEMENTS. Year Ended April 30, ---------------------------------- 2001 2000 -------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: CLASS A (A) Shares sold 10,163,785 8,947,487 Shares issued for dividends reinvested 780,581 1,155,931 Shares redeemed (12,706,866) (11,919,959) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,762,500) (1,816,541) -------------------------------------------------------------------------------- CLASS B (A) Shares sold 721,846 693,475 Shares issued for dividends reinvested 85,972 179,946 Shares redeemed (1,382,746) (4,575,315) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (574,928) (3,701,894) -------------------------------------------------------------------------------- CLASS C Shares sold 302,995 243,277 Shares issued for dividends reinvested 6,898 8,306 Shares redeemed (349,622) (469,388) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (39,729) (217,805) (A) DURING THE PERIOD ENDED APRIL 30, 2001, 493,694 CLASS B SHARES REPRESENTING $6,398,705 WERE AUTOMATICALLY CONVERTED TO 493,976 CLASS A SHARES AND DURING THE PERIOD ENDED APRIL 30, 2000, 2,612,242 CLASS B SHARES REPRESENTING $34,929,103 WERE AUTOMATICALLY CONVERTED TO 2,613,946 CLASS A SHARES. SEE NOTES TO FINANCIAL STATEMENTS. The Fund
FINANCIAL HIGHLIGHTS The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund's financial statements. Year Ended April 30, ------------------------------------------------------------------- CLASS A SHARES 2001 2000 1999 1998 1997 ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 12.75 14.33 14.69 14.11 13.85 Investment Operations: Investment income--net .66 .70 .72 .79 .82 Net realized and unrealized gain (loss) on investments .39 (1.42) (.15) .66 .27 Total from Investment Operations 1.05 (.72) .57 1.45 1.09 Distributions: Dividends from investment income-net (.66) (.70) (.72) (.79) (.82) Dividends from net realized gain on investments -- (.16) (.21) (.08) (.01) Total Distributions (.66) (.86) (.93) (.87) (.83) Net asset value, end of period 13.14 12.75 14.33 14.69 14.11 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) (A) 8.42 (5.01) 3.96 10.52 8.03 ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .98 .93 .91 .91 .91 Ratio of net investment income to average net assets 5.09 5.28 4.96 5.42 5.84 Portfolio Turnover Rate 58.03 70.39 46.84 26.33 28.17 ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 349,345 361,567 432,276 447,869 457,327 (A) EXCLUSIVE OF SALES CHARGE. SEE NOTES TO FINANCIAL STATEMENTS. Year Ended April 30, ------------------------------------------------------------------- CLASS B SHARES 2001 2000 1999 1998 1997 ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 12.76 14.33 14.69 14.11 13.85 Investment Operations: Investment income-net .60 .63 .65 .72 .75 Net realized and unrealized gain (loss) on investments .38 (1.41) (.15) .66 .27 Total from Investment Operations .98 (.78) .50 1.38 1.02 Distributions: Dividends from investment income-net (.60) (.63) (.65) (.72) (.75) Dividends from net realized gain on investments -- (.16) (.21) (.08) (.01) Total Distributions (.60) (.79) (.86) (.80) (.76) Net asset value, end of period 13.14 12.76 14.33 14.69 14.11 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) (A) 7.93 (5.51) 3.43 9.95 7.49 ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets 1.49 1.45 1.42 1.42 1.43 Ratio of net investment income to average net assets 4.63 4.71 4.44 4.89 5.33 Portfolio Turnover Rate 58.03 70.39 46.84 26.33 28.17 ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 47,026 52,979 112,583 119,457 109,485 (A) EXCLUSIVE OF SALES CHARGE. SEE NOTES TO FINANCIAL STATEMENTS. The Fund FINANCIAL HIGHLIGHTS (CONTINUED) Year Ended April 30, ------------------------------------------------------------------- CLASS C SHARES 2001 2000 1999 1998 1997 ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 12.77 14.35 14.71 14.12 13.87 Investment Operations: Investment income-net .57 .60 .61 .68 .72 Net realized and unrealized gain (loss) on investments .39 (1.42) (.15) .67 .26 Total from Investment Operations .96 (.82) .46 1.35 .98 Distributions: Dividends from investment income-net (.57) (.60) (.61) (.68) (.72) Dividends from net realized gain on investments -- (.16) (.21) (.08) (.01) Total Distributions (.57) (.76) (.82) (.76) (.73) Net asset value, end of period 13.16 12.77 14.35 14.71 14.12 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) (A) 7.63 (5.71) 3.16 9.73 7.16 ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets 1.72 1.68 1.67 1.69 1.64 Ratio of net investment income to average net assets 4.36 4.52 4.11 4.55 5.01 Portfolio Turnover Rate 58.03 70.39 46.84 26.33 28.17 ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 4,035 4,424 8,095 3,019 1,049 (A) EXCLUSIVE OF SALES CHARGE. SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS 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 valued at the mean between The Fund 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. In November 2000 the American Institute of Certified Public Accountants ("AICPA") issued a revised version of the AICPA Audit and Accounting Guide for Investment Companies (the "Guide"). The revised version of the Guide is effective for financial statements issued for fiscal years beginning after December 15, 2000. One of the new provisions in the Guide requires investment companies to amortize market discount on municipal securities which the fund does not currently do. Upon adoption, the fund will be required to record a cumulative effect adjustment to conform with accounting principles generally accepted in the United States. The effect of this adjustment, effective May 1, 2001, is to increase accumulated net investment income with an offsetting decrease to accumulated unrealized appreciation (depreciation) on securities. This adjustment will therefore, have no effect on the net assets of the fund. (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. (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 $20,737,000 available for Federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to April 30, 2001. This amount is calculated based on Federal income tax regulations which may differ from financial reporting in accordance with accounting principles generally accepted in the United States. If not applied, $11,183,000 of the carryover expires in fiscal 2008 and $9,554,000 expires in fiscal 2009. 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 NOTES TO FINANCIAL STATEMENTS (CONTINUED) the fund based on prevailing market rates in effect at the time of borrowings. During the period ended April 30, 2001, 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 fund's average daily net assets and is payable monthly. The Distributor retained $1,023 during the period ended April 30, 2001 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 April 30, 2001, Class B and Class C shares were charged $241,032 and $32,630, 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 April 30, 2001 Class A, Class B and Class C shares were charged $888,257, $120,516 and $10,877, respectively, pursuant to the Shareholder Services Plan. The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended April 30, 2001, the fund was charged $207,355 pursuant to the transfer agency agreement. (d) Each Board member also serves as a Board member of other funds within the Dreyfus complex (collectively, the "Fund Group"). Each Board member who is not an "affiliated person" as defined in the Act receives an annual fee of $50,000 and an attendance fee of $6,500 for each in person meeting 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 fund'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. NOTE 4--Securities Transactions: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended April 30, 2001, amounted to $232,930,757 and $257,998,603, respectively. At April 30, 2001, accumulated net unrealized appreciation on investments was $6,018,997, consisting of $16,387,453 gross unrealized appreciation and $10,368,456 gross unrealized depreciation. At April 30, 2001, the cost of investments for Federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). The Fund REPORT OF INDEPENDENT AUDITORS Shareholders and Board of Trustees Dreyfus Premier Municipal Bond Fund We have audited the accompanying statement of assets and liabilities of Dreyfus Premier Municipal Bond Fund, including the statement of investments, as of April 30, 2001 and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the fund' s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the 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 and financial highlights. Our procedures included confirmation of securities owned as of April 30, 2001 by correspondence with the custodian and brokers. 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 Dreyfus Premier Municipal Bond Fund at April 30, 2001, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with accounting principles generally accepted in the United States. New York, New York June 5, 2001 IMPORTANT TAX INFORMATION (Unaudited) In accordance with Federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended April 30, 2001 as " exempt-interest dividends" (not generally subject to regular Federal income tax). As required by Federal tax law rules, shareholders will receive notification of their portion of the fund's taxable ordinary dividends (if any) and capital gain distributions (if any) paid for the 2001 calendar year on Form 1099-DIV which will be mailed by January 31, 2002. The Fund 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) 2001 Dreyfus Service Corporation 022AR0401