-----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, AKdaD2YmYsRgX/WMYNpHputiECcB4cyJet7IUBAJmP+hPDKT1lxWJkZVQ3aXgRHC DvNtQ4BKWHaKVk9FJeUZHg== 0000797923-99-000001.txt : 19990112 0000797923-99-000001.hdr.sgml : 19990112 ACCESSION NUMBER: 0000797923-99-000001 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981031 FILED AS OF DATE: 19990111 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: 99503918 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 SEMI-ANNUAL REPORT DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- LETTER TO SHAREHOLDERS Dear Shareholder: We are pleased to report the performance for Dreyfus Premier Municipal Bond Fund for the six-month reporting period ended October 31, 1998, as shown in the following table:
ANNUALIZED TOTAL RETURN* DISTRIBUTION RATE** ___________ _______________ Class A shares . . . . . . . . . . . . . . . . . . . . 2.52% 4.88% Class B shares . . . . . . . . . . . . . . . . . . . . 2.26% 4.59% Class C shares . . . . . . . . . . . . . . . . . . . . 2.12% 4.33%
ECONOMY REVIEW In the face of soaring consumer confidence and strong first-quarter economic growth, the Federal Reserve Board (the "Fed") earlier this year refrained from increasing interest rates, partially to avoid further roiling international financial markets. In addition, the Fed evidently felt then that the economic slowdown overseas might curtail the U.S. economy to some degree, which would alleviate the need for monetary restraint. The Fed's expectations have proven to be true, and its judgment accurate. The U.S. balance of trade has worsened and there have been increasing signs of a slowdown in export-related industries. On September 29, concerns about a weakening U.S. economy caused the Federal Open Market Committee (the F.O.M.C. is the policy-making arm of the Fed) to pare the Federal Funds target rate by 25 basis points, the first reduction since January 1996. (The Federal Funds rate is the rate of interest that banks charge each other for overnight loans.) At that point, Fed Chairman Alan Greenspan described the economic outlook for the United States as having "weakened measurably." Two weeks later, on October 15, the F.O.M.C. again reduced the target rate by an additional 25 basis points, putting the Federal Funds rate at 5.0%. Despite the concerns of the Fed regarding an economic slowdown, aggregate economic statistics showed a growing and resilient economy during the reporting period. Low unemployment and negligible inflation, combined with car makers rebuilding inventory after a long strike and rising consumer incomes, resulted in solid economic growth (3.3% ) for the third quarter of this year. While a significant portion of this gain was due to inventory replenishment after the automobile strike, the overall results were still an improvement over second-quarter economic growth of 1.8%. Inflation as measured by the Consumer Price Index remained at levels not witnessed since 1963. The Fed' s responsibility is to enact monetary policy that is anticipatory of future economic conditions. The U.S. trade deficit has continued to widen because of the global economic slide. Slumping exports have weakened manufacturing activity since midyear and there is concern that this slackness could become more pronounced and widen into other sectors of the economy. While the increase in imports also restrains domestic production, it has helped contain inflation as well, since domestic producers are reluctant to raise prices. This provides additional flexibility for the Fed to lower interest rates still further. So far, economic problems overseas have not caused any measurable reaction in the U.S. labor market. Only the growth rate in new jobs has eased from its torrid pace earlier in the year. The unemployment rate has remained near 30-year lows and worker inflation-adjusted take-home pay has been rising. The condition of the labor market is a key determinant of consumer confidence which, of course, relates directly to consumer spending, a force that accounts for two thirds of all economic activity. Business spending has shown signs of weakness, so the role of the consumer will be of even greater importance in the future. It is significant that measures of consumer confidence have receded from earlier record high levels, largely because of concerns about the volatility of financial markets. MARKET ENVIRONMENT The general fixed-income markets have traded off in a downward-spiked pattern since appreciating dramatically and topping in mid-October. Market participants have been greatly influenced by the overall trend to perceived safer securities (mainly Treasury notes and bonds), incited by the Asian economic crisis. This crisis has prompted notions of domestic economic contraction, creating the perception that bonds whose credit quality is dependent on the business cycle are vulnerable. Therefore, many securities, such as corporate, mortgage, asset backed, or project related bonds, have traded off in this period. Currently, the expectation is that the interest rate spreads of these types of securities and Treasuries will remain wide. Additionally, the recent exaggerated nature of short-term price performance (both up and down) was greatly influenced by the financial problems of leveraged hedge funds and the quick response by the Federal Reserve. The municipal market focused on these trends and its participants initially benefited from the same direction, though not to the same level of appreciation, as the Treasury bond markets. Correspondingly, in the recent market price decline, municipals outperformed Treasuries, maintaining more of their value. PORTFOLIO OVERVIEW In the past, your Fund has been a responder to the supply-and-demand pressure dynamic of the tax-exempt bond market. New issuance, usually our primary concern, was replaced by the fundamental concerns of interest rate trends and the previously mentioned widening of interest rate levels among different classes of bonds. While your Fund is not adversely impacted to the same extent as many other asset groups, some bonds in your Fund were affected and some losses were realized in the current quarter. As a protective measure, some high-quality, highly liquid securities were added to your Fund. Bonds that could erode in price due to the current market sentiment were replaced. Likewise, bonds with short call features on premium priced positions that bring prices down with the passing of time were traded. These exchanges were accomplished at a modest change in yield in most circumstances. This new balance leaves many defensive securities in the portfolio, which is appropriate in a scenario where recent Fed rate cuts have primarily enhanced the value of the equity markets and not the bond market. However, if there is another upward price rally in fixed income, the newly added bonds will participate. Included in this report is a series of detailed financial statements, which outline the Fund' s current holdings and its financial condition. We hope that you find them informative. Very truly yours, [Richard J. Moynihan signature logo] Richard J. Moynihan Director, Municipal Portfolio Management The Dreyfus Corporation November 16, 1998 New York, N.Y. *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. **Distribution rate per share is based upon dividends per share paid from net investment income during the period (annualized) , divided by the maximum offering price per share at the end of the period in the case of Class A shares, or the net asset value per share in the case of Class B and Class C shares. Some income may be subject to the Federal Alternative Minimum Tax (AMT) for certain shareholders.
DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS OCTOBER 31, 1998 (UNAUDITED) Principal Long-Term Municipal Investments--98.0% Amount Value - ------------------------------------------------------- _____________ _____________ ARIZONA--.9% Maricopa County Pollution Control Corporation, PCR, Refunding (Public Service Co. - New Mexico Project) 6.30%, 12/1/2026 . . . . . . . . . . . . . . . $ 5,000,000 $ 5,360,250 CALIFORNIA--3.4% Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue: 6%, 1/1/2034 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,353,900 5%, 1/1/2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 7,708,240 San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue (Senior Lien) 5%, 1/1/2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,500,000 6,257,680 COLORADO--9.2% Arapahoe County Capital Improvement Trust Fund, Highway Revenue (E-470 Project) Zero Coupon, 8/31/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,530,000 1,914,679 Zero Coupon, 8/31/2007 (Prerefunded 8/31/2005) (a) . . . . . . . . . . . . . . . . . . . 4,000,000 2,701,440 7%, 8/31/2026 (Prerefunded 8/31/2005) (a) . . . . . . . . . . . . . . . . . . . . . . . 11,000,000 13,232,890 Dawson Ridge, Metropolitan District Number 1, Refunding: Zero Coupon, 10/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,930,000 3,557,422 Zero Coupon, 10/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,535,000 12,983,234 Denver City and County, Airport Revenue: 7.50%, 11/15/2023 (Prerefunded 11/15/2004) (a) . . . . . . . . . . . . . . . . . . . . . 2,060,000 2,481,517 7.50%, 11/15/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,715,000 11,330,993 7%, 11/15/2025 (Prerefunded 11/15/2001) (a) . . . . . . . . . . . . . . . . . . . . . . 820,000 898,392 7%, 11/15/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,405,000 3,653,871 Connecticut--2.0% Connecticut Development Authority First Mortgage Gross Revenue (Elim Park Baptist Home, Inc. Project) 9%, 12/1/2020 (Prerefunded 12/1/1999) (a) . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,271,980 PCR, Refunding (Connecticut Light & Power) 5.85%, 9/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 8,053,360 Delaware--.7% Delaware Housing Authority, MFMR 7%, 5/1/2025. . . . . . . . . . . . . . . . . . . . . . . 3,725,000 4,043,115 Florida--6.5% Florida Turnpike Authority, Turnpike Revenue, Refunding 4.75%, 7/1/2020 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,050,000 10,679,162 Lee County Industrial Development Authority, Health Care Facilities Revenue (Cypress Cove Health Park): 5.625%, 10/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,041,760 5.875%, 10/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,063,820 6.25%, 10/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,131,340 6.375%, 10/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500,000 4,722,120 Palm Beach County, Solid Waste IDR: (Okeelanta Power LP Project) 6.85%, 2/15/2021 (b) . . . . . . . . . . . . . . . . . . . 6,750,000 5,400,000 (Osceola Power LP) 6.95%, 1/1/2022 (b) . . . . . . . . . . . . . . . . . . . . . . . . . 7,500,000 5,925,000 Santa Rosa Bay Bridge Authority, Revenue 6.25%, 7/1/2028 . . . . . . . . . . . . . . . . . 3,000,000 3,276,270 DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED) Principal Long-Term Municipal Investments (continued) Amount Value - ------------------------------------------------------- _____________ _____________ Hawaii--.3% Hawaii Department of Transportation, Special Facilities Revenue (Continental Airlines, Inc.) 5.625%, 11/15/2027 . . . . . . . . . . . . . . . . . . . . $ 1,850,000 $ 1,838,678 Illinois--3.0% Carol Stream, First Mortgage Revenue, Refunding (Windsor Park Manor Project) 6.50%, 12/1/2007 . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,158,160 East Chicago, PCR, Refunding (Inland Steel Company Project) 7.125%, 6/1/2007 . . . . . . . . . . . . . . . . . . . . 3,000,000 3,260,370 Illinois Development Finance Authority, Revenue (Community Rehabilitation Providers Facility): 8.75%, 3/1/2010 (Prerefunded 3/1/1999) (a) . . . . . . . . . . . . . . . . . . . . . . 5,873,000 6,097,995 8.75%, 3/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337,000 347,582 8.50%, 9/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,550,000 1,651,711 8.25%, 8/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,815,000 3,441,664 Indiana--3.5% Indiana Development Finance Authority: Environmental Improvement Revenue, Refunding (USX Corp. Project) 6.15%, 7/15/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,287,840 Exempt Facilities Revenue, Refunding (Inland Steel) 5.75%, 10/1/2011 . . . . . . . . . . 11,500,000 11,370,510 PCR, Refunding (Inland Steel Co., Project Number 12) 6.85%, 12/1/2012 . . . . . . . . . 4,000,000 4,223,920 Kentucky--2.3% Kentucky Economic Development Finance Authority, Hospital System Improvement Revenue, Refunding (Appalachian Regional Health Center) 5.85%, 10/1/2017 . . . . . . . . . . . . . . . . . 6,000,000 6,245,760 Perry County, SWDR (TJ International Project): 7%, 6/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,872,365 6.55%, 4/15/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,762,725 Louisiana--1.1% Louisiana Housing Finance Agency, MFHR, Refunding (LaBelle Projects) 9.75%, 10/1/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . 4,155,000 4,333,166 Louisiana Public Facilities Authority, Student Loan Revenue 7%, 9/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,900,000 2,010,086 Maryland--.6% Maryland Energy Financing Administration, SWDR (Wheelabrator Water Projects) 6.45%, 12/1/2016 . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,308,550 Massachusetts--3.2% Massachusetts Industrial Finance Agency: Health Care Facility Revenue (Metro Health Foundation, Inc. Project) 6.75%, 12/1/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 8,581,920 RRR, Refunding (Ogden Haverhill Project): 5.50%, 12/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,543,850 5.60%, 12/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,470,000 4,485,734 Water Treatment Revenue (American Hingham) 6.95%, 12/1/2035 . . . . . . . . . . . . . . 2,640,000 2,939,957 DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED) Principal Long-Term Municipal Investments (continued) Amount Value - ------------------------------------------------------- _____________ _____________ Michigan--2.0% Michigan Hospital Finance Authority, HR, Refunding (Genesys Regional Medical - A) 5.375%, 10/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,000,000 $ 4,107,920 Wayne Charter County, Special Airport Facilities Revenue, Refunding (Northwest Airlines, Inc.) 6.75%, 12/1/2015 . . . . . . . . . . . . . . . . . . . . . . 4,995,000 5,505,639 Wayne County Building Authority 8%, 3/1/2017 (Prerefunded 3/1/2002) (a). . . . . . . . . . 1,500,000 1,722,405 New Jersey--5.2% New Jersey Building Authority, Building Revenue, Refunding: 5%, 6/15/2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 46,940 5.915%, 6/15/2011 (c,d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,400,000 6,951,680 New Jersey Economic Development Authority, First Mortgage Gross Revenue (The Evergreens) 9.25%, 10/1/2022 (Prerefunded 10/1/2002) (a) . . . . . . . . . . . . . 15,000,000 18,172,500 New Jersey Sports and Exposition Authority, Revenue, Refunding (Monmouth Park) 8%, 1/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,560,440 New Mexico--1.5% Farmington, PCR: Refunding (Public Service Co. - San Juan Project) 6.375%, 4/1/2022 . . . . . . . . . . . 5,000,000 5,428,950 (Tucson Electric Power Company of San Juan) 6.95%, 10/1/2020 . . . . . . . . . . . . . . 3,000,000 3,333,480 New York--12.1% Long Island Power Authority, Electric System Revenue 5.125%, 4/1/2012 (Insured; MBIA) (e) . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 7,307,510 New York City 7.10%, 2/1/2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 560,000 620,105 New York City Industrial Development Agency IDR, Refunding (laguardia Associates LP Project) 5.80% 11/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,710,000 8,702,161 Civic Facility Improvement Revenue, Refunding (Lighthouse International Project) 4.50%, 7/1/2020 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 694,628 New York State Energy Research and Development Authority, Electric Facilities Revenue (Long Island Lighting Co.): 7.15%, 9/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,650,000 3,989,012 7.15%, 6/1/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,371,520 7.15%, 12/1/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,464,400 7.15%, 2/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500,000 8,196,600 New York State Local Government Assistance Corporation: 6.30%, 4/1/2013 (c,d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,900,000 7,426,884 Refunding 4.50%, 4/1/2017 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,773,600 New York State Thruway Authority Service Contract Revenue, 6.45%, 4/1/2010 (c,d) . . . . . . . . . . . . . . . . . . . . 5,000,000 5,562,700 Port Authority of New York and New Jersey, Special Obligation Revenue (Special Project - JFK International Airport Terminal) 6.25%, 12/1/2013 (Insured; MBIA) . 6,000,000 7,021,560 Scotia Housing Authority, Housing Revenue (Coburg Village, Inc. Project) 6.10%, 7/1/2018 . . . . . . . . . . . . . . . . . . . . . 5,400,000 5,475,978 DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED) Principal Long-Term Municipal Investments (continued) Amount Value - ------------------------------------------------------- _____________ _____________ North Carolina--2.8% Charlotte, Special Facilities Revenue, Refunding (Charlotte/Douglas International Airport) 5.60%, 7/1/2027 . . . . . . . . . . . . . . . $ 5,000,000 $ 4,955,150 North Carolina Eastern Municipal Power Agency, Power System Revenue, Refunding: 7%, 1/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 4,129,685 6%, 1/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,750,000 7,080,278 Ohio--2.5% Ohio Turnpike Commission, Turnpike Revenue, 4.50%, 2/15/2024 (Insured; FGIC) . . . . . . . 6,000,000 5,600,220 Ohio Water Development Authority, Pollution Control Facilites Revenue, Refunding (Cleveland Electric) 6.10%, 8/1/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . 8,500,000 8,704,425 Oklahoma--1.4% Holdenville Industrial Authority, Correctional Facility Revenue: 6.60%, 7/1/2010 (Prerefunded 7/1/2006) (a) . . . . . . . . . . . . . . . . . . . . . . . 2,045,000 2,419,501 6.70%, 7/1/2015 (Prerefunded 7/1/2006) (a) . . . . . . . . . . . . . . . . . . . . . . . 4,625,000 5,502,224 Oregon--.9% Oregon, EDR, Refunding (Georgia Pacific Corp. Project) 5.70%, 12/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,119,450 Pennsylvania--6.8% Beaver County Industrial Development Authority, PCR, Refunding 7.75%, 7/15/2025. . . . . . 6,000,000 6,851,520 Blair County Hospital Authority, Revenue (Altoona Hospital) 8.042%, 7/1/2013 (Insured; AMBAC) (c) . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,891,550 Dauphin County General Authority, Office and Parking Revenue (Riverfront Office) 5.50%, 1/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . 4,205,000 4,245,368 Delaware County Industrial Development Authority, Revenue, Refunding (Resource Recovery Facility) 6.20%, 7/1/2019 . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,373,050 Lancaster County Hospital Authority, Revenue (Health Center - United Church Homes Project) 9.125%, 10/1/2014 (Prerefunded 10/1/1999) (a) . . . . . . . . . . . . . . 1,465,000 1,572,223 Lehigh County General Purpose Authority, Revenue (Wiley House) 9.50%, 11/1/2016 (Prerefunded 11/1/2001) (a) . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,532,380 Montgomery County Higher Education and Health Authority, First Mortgage Revenue (AHF/Montgomery, Inc. Project) 10.50%, 9/1/2020 . . . . . . . . . . . . . . . . . . . . 3,430,000 3,720,418 Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue (Philadelphia Funding Program) 6.80%, 6/15/2022 (Prerefunded 6/15/2002) (a) . . . . . . 2,000,000 2,210,200 Philadelphia, Water and Sewer Revenue 7.35%, 9/1/2004. . . . . . . . . . . . . . . . . . . 4,900,000 5,568,801 Rhode Island--.6% Providence, Special Tax Increment Obligation 6.65%, 6/1/2016 . . . . . . . . . . . . . . . 3,000,000 3,291,450 Tennessee--1.1% Shelby County Health Educational and Housing Facilities, Multi-Family Housing Board Revenue (Cameron Kirby): 5.90%, 7/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,152,490 7.25%, 7/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,100,000 3,242,507 DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED) Principal Long-Term Municipal Investments (continued) Amount Value - ------------------------------------------------------- _____________ _____________ Texas--11.2% Alliance Airport Authority, Special Facilities Revenue: (American Airlines, Inc. Project) 7%, 12/1/2011 . . . . . . . . . . . . . . . . . . . . $ 10,700,000 $ 12,578,278 (Federal Express Corp. Project) 6.375%, 4/1/2021 . . . . . . . . . . . . . . . . . . . . 5,000,000 5,400,200 Austin, Revenue, Refunding 5.25%, 5/15/2025 (Insured; MBIA) (e) . . . . . . . . . . . . . . . . . . . . . . . . . . 12,040,000 12,671,016 Houston Airport System, Special Facilities Improvement Revenue (Continental Airline Terminal): 6.125%, 7/15/2017 (Guaranteed; Continental Airline, Inc.) . . . . . . . . . . . . . . 8,375,000 8,633,201 6.125%, 7/15/2027 (Guaranteed; Continental Airline, Inc.) . . . . . . . . . . . . . . 6,800,000 7,009,644 Rio Grande City Consolidated Independent School District, Public Facilities Corp. LR 6.75%, 7/15/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 6,614,460 Texas Public Property Finance Corp., Revenue (Mental Health and Retardation Center) 8.20%, 10/1/2012 (Prerefunded 10/1/2002) (a) . . . . . . . . . . . . . . . . . . . . . . 7,745,000 9,036,479 Tyler Health Facilities Development Corporation, HR, Refunding (Mother Frances Hospital) 5.62%, 7/1/2013 . . . . . . . . . . . . . . . . . . . . . . . 2,680,000 2,705,808 Utah--2.3% Carbon County, SWDR, Refunding: (East Carbon Development Corp.) 9%, 7/1/2012 . . . . . . . . . . . . . . . . . . . . . . 3,900,000 4,242,966 (Sunnyside Cogeneration) 9.25%, 7/1/2018 (b) . . . . . . . . . . . . . . . . . . . . . . 15,000,000 9,003,000 Virginia--.9% Virginia Housing Development Authority (Commonwealth Mortgage) 5.50% 1/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,108,450 West Virginia--1.4% Upshur County, SWDR (TJ International Project) 7%, 7/15/2025 . . . . . . . . . . . . . . . 7,000,000 7,846,720 U.S. Related--8.6% Puerto Rico Commonwealth: Public Improvement: 5.50%, 7/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,445,150 6.50%, 7/1/2014 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 6,074,150 Zero Coupon, 7/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400,000 1,074,408 Refunding: 6.25%, 7/1/2013 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,568,020 6%, 7/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 429,584 5.65%, 7/1/2015 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,690,000 11,873,597 Puerto Rico Commonwealth Aqueduct and Sewer Authority, Revenue, Refunding 6.25%, 7/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000,000 10,512,990 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue 5%, 7/1/2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,037,700 DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED) Principal Long-Term Municipal Investments (continued) Amount Value - ------------------------------------------------------- _____________ _____________ U.S. RELATED (CONTINUED) Puerto Rico Electric Power Authority, Power Revenue 6.25%, 7/1/2017 (Prerefunded 7/1/2002) (a) . . . . . . . . . . . . . . . . . . . . . . . $ 520,000 $ 574,257 Puerto Rico Telephone Authority, Revenue, Refunding 6.538%, 1/25/2007 (Insured; MBIA) (c) . . . . . . . . . . . . . . . . . . . . . . . . . 3,950,000 4,409,188 _______________ TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $530,112,155). . . . . . . . . . . . . . . . . $561,253,746 _______________ SHORT-TERM MUNICIPAL INVESTMENTS--6.0% - ------------------------------------------------------- Alabama--1.5% McIntosh Industrial Development Board, Enviromental Improvement Revenue, Refunding VRDN 3.75% (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,700,000 $ 8,700,000 Minnesota--.9% Cohasset, Revenue, Refunding, VRDN (Minnesota Power and Light Company Project) 3.65% (LOC; ABN Amro Bank) (f) . . . . . . . 1,400,000 1,400,000 Mankato, MFHR, Refunding, VRDN (Highland Hills Project) 3.25% (LOC; First Bank) (f) . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000 Saint Paul Housing and Redevelopment Authority, Revenue, VRDN (Science Museum of Minnesota) 3.20% (LOC; First Bank) (f) . . . . . . . . . . . . . . . 700,000 700,000 New York--1.7% Port Authority of New York and New Jersey, Special Obligation Revenue, VRDN 3.70% (f). . . 9,400,000 9,400,000 Ohio--.4% Twinsburg Industrial Development, Revenue, VRDN (United Stationers Supply Company) 3.85% (LOC; PNC Bank) (f) . . . . . . . . . . . . . . 2,400,000 2,400,000 South Dakota--.8% Lawrence County, SWDR, VRDN (Homestake Mining) 3.80% (LOC; The Chase Manahattan Bank) (f) . . . . . . . . . . . . . . . . . . . . . . . 4,800,000 4,800,000 Texas--.7% Harris County Health Facilities Development Corporation, HR, VRDN (Methodist Hospital) 3.70% (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,000,000 _______________ TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $34,400,000). . . . . . . . . . . . . . . . . $ 34,400,000 _______________ _______________ TOTAL INVESTMENTS (cost $564,512,155). . . . . . . . . . . . . . . . . . . . . . . . . . 104.0% $595,653,746 _______ _______________ LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . (4.0%) $ (23,173,389) _______ _______________ NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $572,480,357 _______ _______________ DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- Summary of Abbreviations - ----------------------------------------------------------------------------- AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue EDR Economic Development Revenue MFMR Multi-Family Mortgage Revenue FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue HR Hospital Revenue RRR Resources Recovery Revenue IDR Industrial Development Revenue SWDR Solid Waste Disposal Revenue LR Lease Revenue VRDN Variable Rate Demand Note MBIA Municipal Bond Investors Assurance Insurance Corporation Summary of Combined Ratings (Unaudited) - ----------------------------------------------------------------------------- Fitch or Moody's or Standard & Poor's Percentage of Value ______ _______ ________________ _________________ AAA Aaa AAA 22.5% AA Aa AA .9 A A A 11.8 BBB Baa BBB 20.9 BB Ba BB 6.8 B B B 3.0 F-1+ & F-1 MIG1, VMIG1 & P1 SP1 & A1 5.8 Not Rated (g) Not Rated (g) Not Rated (g) 28.3 _______ 100.0% _______ _______ Notes to Statement of Investments:
- ----------------------------------------------------------------------------- (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) Non-income producing security; interest payments in default. (c) Inverse floater security--the interest rate is subject to change periodically. (d) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from regristration, normally to qualified institutional buyers. At October 31, 1998, these securities amounted to $19,941,264 or 3.5% of net assets. (e) Purchased on a delayed-delivery basis. (f) Securities payable on demand. Variable interest rate subject to periodic change (g) 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.
DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998 (UNAUDITED) Cost Value _____________ _____________ ASSETS: Investments in securities--See Statement of Investments . . $564,512,155 $595,653,746 Interest receivable . . . . . . . . . . . . . . . . . . . 8,341,029 Receivable for shares of Beneficial Interest subscribed . . 461,442 Prepaid expenses . . . . . . . . . . . . . . . . . . . . 43,269 _______________ 604,499,486 _______________ LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 277,190 Due to Distributor . . . . . . . . . . . . . . . . . . . 179,510 Cash overdraft due to Custodian . . . . . . . . . . . . . 3,343,376 Payable for investment securities purchased . . . . . . . 27,861,412 Payable for shares of Beneficial Interest redeemed . . . 144,831 Accrued expenses . . . . . . . . . . . . . . . . . . . . 212,810 _______________ 32,019,129 _______________ NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $572,480,357 _______________ REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $533,106,301 Accumulated net realized gain (loss) on investments . . . 8,232,465 Accumulated net unrealized appreciation (depreciation) on investments--Note 4 . . . . . . . . . . . . . . . . 31,141,591 _______________ NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $572,480,357 _______________
NET ASSET VALUE PER SHARE --------------------
Class A Class B Class C ______________ ______________ _______________ Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $441,130,884 $124,141,295 $ 7,208,178 Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . 30,049,520 8,454,443 490,339 NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . $14.68 $14.68 $14.70 _______ _______ _______ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1998 (UNAUDITED) INVESTMENT INCOME INCOME Interest Income . . . . . . . . . . . . . . . . . $17,317,832 EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $ 1,592,163 Shareholder servicing costs--Note 3(c) . . . . . 926,029 Distribution fees--Note 3(b) . . . . . . . . . . 323,992 Custodian fees . . . . . . . . . . . . . . . . . 27,683 Registration fees . . . . . . . . . . . . . . . . 27,035 Professional fees . . . . . . . . . . . . . . . . 23,111 Prospectus and shareholders' reports . . . . . . 18,026 Trustees' fees and expenses--Note 3(d) . . . . . 17,035 Loan commitment fees--Note 2 . . . . . . . . . . 2,726 Miscellaneous . . . . . . . . . . . . . . . . . . 12,152 _____________ Total Expenses . . . . . . . . . . . . . . . . 2,969,952 ____________ INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,347,880 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4: Net realized gain (loss) on investments . . . . . $ 2,638,390 Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . . . . . (2,941,274) _____________ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . (302,884) ____________ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $14,044,996 ____________ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS Six Months Ended October 31, 1998 Year Ended (Unaudited) April 30, 1998 _______________ _____________ OPERATIONS: Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,347,880 $ 30,469,152 Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 2,638,390 10,610,253 Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . (2,941,274) 15,681,076 _______________ ______________ Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 14,044,996 56,760,481 _______________ ______________ DIVIDENDS TO SHAREHOLDERS FROM: Investment income--net: Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,459,376) (24,679,815) Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,781,150) (5,696,047) Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (107,354) (93,290) Net realized gain on investments: Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (2,600,891) Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (670,463) Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (13,085) _______________ ______________ Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,347,880) (33,753,591) _______________ ______________ BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from shares sold: Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,880,880 113,213,669 Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,719,021 17,652,591 Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,519,758 1,951,054 Dividends reinvested: Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,436,374 15,608,787 Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,495,999 3,578,795 Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,726 41,919 Cost of shares redeemed: Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (86,867,434) (156,745,426) Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,452,697) (15,746,393) Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (324,657) (79,409) _______________ ______________ Increase (Decrease) in Net Assets from Beneficial Interest Transactions . 2,438,970 (20,524,413) _______________ ______________ Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . 2,136,086 2,482,477 NET ASSETS: Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570,344,271 567,861,794 _______________ ______________ End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $572,480,357 $570,344,271 _______________ ______________ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) Shares ______________________________ Six Months Ended October 31, 1998 Year Ended (Unaudited) April 30, 1998 _______________ _____________ CAPITAL SHARE TRANSACTIONS: Class A ________ Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,004,107 7,726,113 Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 435,837 1,065,410 Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,888,443) (10,709,000) __________ ____________ Net Increase (Decrease) in Shares Outstanding . . . . . (448,499) (1,917,477) __________ ____________ Class B ________ Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 793,051 1,206,389 Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 101,280 244,184 Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (572,312) (1,077,080) __________ ____________ Net Increase (Decrease) in Shares Outstanding . . . . . 322,019 373,493 __________ ____________ Class C ________ Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,883 133,508 Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 2,145 2,854 Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,979) (5,369) __________ ____________ Net Increase (Decrease) in Shares Outstanding . . . . . 285,049 130,993 __________ ____________ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Contained below is per share operating performance data for a share of Beneficial Interest outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements.
Class A Shares _________________________________________________________________________ Six Months Ended October 31, 1998 Year Ended April 30, _______________________________________________________ PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994 __________ _______ _______ _______ _______ _______ Net asset value, beginning of period . . . . . $14.69 $14.11 $13.85 $13.86 $13.81 $14.45 _______ _______ _______ _______ _______ _______ Investment Operations: Investment income--net . . . . . . . . . . . . .38 .79 .82 .86 .84 .89 Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . (.01) .66 .27 (.01) .05 (.59) _______ _______ _______ _______ _______ _______ Total from Investment Operations . . . . . . . .37 1.45 1.09 .85 .89 .30 _______ _______ _______ _______ _______ _______ Distributions: Dividends from investment income--net . . . . . (.38) (.79) (.82) (.86) (.84) (.89) Dividends from net realized gain on investments . . -- (.08) (.01) -- -- (.05) _______ _______ _______ _______ _______ _______ Total Distributions . . . . . . . . . . . . . . (.38) (.87) (.83) (.86) (.84) (.94) _______ _______ _______ _______ _______ _______ Net asset value, end of period . . . . . . . . $14.68 $14.69 $14.11 $13.85 $13.86 $13.81 _______ _______ _______ _______ _______ _______ TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 5.00%(2) 10.52% 8.03% 6.08% 6.72% 1.84% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets . . . . .91%(2) .91% .91% .92% .92% .85% Ratio of net investment income to average net assets . . . . . . . . . . . 5.07%(2) 5.42% 5.84% 5.98% 6.16% 6.01% Decrease reflected in above expense ratios due to undertakings by the Manager . . . . . . -- -- -- -- -- .06% Portfolio Turnover Rate . . . . . . . . . . . . 25.44%(3) 26.33% 28.17% 36.59% 38.60% 22.15% Net Assets, end of period (000's Omitted) . . . $441,131 $447,869 $457,327 $474,044 $495,616 $546,036 - --------------- (1) Exclusive of sales load. (2) Annualized. (3) Not annualized. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (CONTINUED) Contained below is per share operating performance data for a share of Beneficial Interest outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements.
Class B Shares _________________________________________________________________________ Six Months Ended October 31, 1998 Year Ended April 30, _______________________________________________________ PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994 __________ _______ _______ _______ _______ _______ Net asset value, beginning of period . . . . . $14.69 $14.11 $13.85 $13.86 $13.81 $14.45 _______ _______ _______ _______ _______ _______ Investment Operations: Investment income--net . . . . . . . . . . . . .34 .72 .75 .78 .77 .80 Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . (.01) .66 .27 (.01) .05 (.59) _______ _______ _______ _______ _______ _______ Total from Investment Operations . . . . . . . .33 1.38 1.02 .77 .82 .21 _______ _______ _______ _______ _______ _______ Distributions: Dividends from investment income--net . . . . . (.34) (.72) (.75) (.78) (.77) (.80) Dividends from net realized gain on investments . . -- (.08) (.01) -- -- (.05) _______ _______ _______ _______ _______ _______ Total Distributions . . . . . . . . . . . . . . (.34) (.80) (.76) (.78) (.77) (.85) _______ _______ _______ _______ _______ _______ Net asset value, end of period . . . . . . . . $14.68 $14.69 $14.11 $13.85 $13.86 $13.81 _______ _______ _______ _______ _______ _______ TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 4.48%(2) 9.95% 7.49% 5.53% 6.15% 1.26% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets . . . . 1.43%(2) 1.42% 1.43% 1.43% 1.44% 1.40% Ratio of net investment income to average net assets . . . . . . . . . . . 4.56%(2) 4.89% 5.33% 5.46% 5.62% 5.33% Decrease reflected in above expense ratios due to undertakings by the Manager . . . . . . -- -- -- -- -- .05% Portfolio Turnover Rate . . . . . . . . . . . . 25.44%(3) 26.33% 28.17% 36.59% 38.60% 22.15% Net Assets, end of period (000's Omitted) . . . $124,141 $119,457 $109,485 $106,931 $99,411 $95,643 - --------------- (1) Exclusive of sales load. (2) Annualized. (3) Not annualized. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (CONTINUED) Contained below is per share operating performance data for a share of Beneficial Interest outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements.
Class C Shares ________________________________________________ Six Months Ended October 31, 1998 Year Ended April 30, _______________________________ PER SHARE DATA: (Unaudited) 1998 1997 1996(1) _________ _______ _______ _______ Net asset value, beginning of period . . . . . . . . . . . . . . . . . $14.71 $14.12 $13.87 $14.28 _______ _______ _______ _______ Investment Operations: Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . .32 .68 .72 .60 Net realized and unrealized gain (loss) on investments . . . . . . . . (.01) .67 .26 (.41) _______ _______ _______ _______ Total from Investment Operations . . . . . . . . . . . . . . . . . . . .31 1.35 .98 .19 _______ _______ _______ _______ Distributions: Dividends from investment income--net . . . . . . . . . . . . . . . . . (.32) (.68) (.72) (.60) Dividends from net realized gain on investments . . . . . . . . . . . . -- (.08) (.01) -- _______ _______ _______ _______ Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . (.32) (.76) (.73) (.60) _______ _______ _______ _______ Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $14.70 $14.71 $14.12 $13.87 _______ _______ _______ _______ TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . . . . . . . . 4.21%(3) 9.73% 7.16% 1.56%(3) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 1.69%(3) 1.69% 1.64% 1.77%(3) Ratio of net investment income to average net assets . . . . . . . . . 4.23%(3) 4.55% 5.01% 4.84%(3) Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 25.44%(4) 26.33% 28.17% 36.59% Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $7,208 $3,019 $1,049 $340 - --------------- (1) From July 13, 1995 (commencement of initial offering) to April 30, 1996. (2) Exclusive of sales load. (3) Annualized. (4) Not annualized. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND 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. Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the Fund's shares. The Fund is authorized to issue an unlimited number of $.001 par value shares 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. 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 generally accepted accounting principles 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 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. Income earned under this arrangement is included in interest income. DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) (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 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. NOTE 2--BANK LINE OF CREDIT: The Fund participates with other Dreyfus-managed Funds in a $600 million redemption credit facility (" 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, 1998, the Fund did not borrow under the line of credit. 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. Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, retained $1,268 during the period ended October 31, 1998 from commissions earned on sales of the Fund's shares. (B) Under the Distribution 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, 1998, Class B and Class C shares were charged $304,962 and $19,030, respectively, pursuant to the Distribution 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, 1998, Class A, Class B and Class C shares were charged $564,886, $152,481 and $6,343, respectively, pursuant to the Shareholder Services Plan. DREYFUS PREMIER MUNICIPAL BOND FUND - ----------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 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, 1998, the Fund was charged $119,104 pursuant to the transfer agency agreement. (D) Each trustee who is not an "affiliated person" as defined in the Act receives from the Fund an annual fee of $2,500 and an attendance fee of $250 per meeting. The Chairman of the Board receives an additional 25% of such compensation. NOTE 4--SECURITIES TRANSACTIONS: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended October 31, 1998 amounted to $145,717,657 and $143,103,797, respectively. At October 31, 1998, accumulated net unrealized appreciation on investments was $31,141,591, consisting of $42,219,951 gross unrealized appreciation and $11,078,360 gross unrealized depreciation. At October 31, 1998, 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). 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 90 Washington Street New York, NY 10286 TRANSFER AGENT & DIVIDEND DISBURSING AGENT Dreyfus Transfer, Inc. P.O. Box 9671 Providence, RI 02940 Printed in U.S.A. 022SA9810 SEMI-ANNUAL REPORT - ------------------------------------------------------------------------------- DREYFUS PREMIER MUNICIPAL BOND FUND - ------------------------------------------------------------------------------- OCTOBER 31, 1998 (reg.tm) -----END PRIVACY-ENHANCED MESSAGE-----