-----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, Bj4wphRY6s00D5qpuyY2Iisf6FNwlCTznV0rwKBAC5i+dVYEUU5aZhFd4OXTnePi VlQI+sHpZiLq6hJewgy19w== 0000797923-99-000006.txt : 19990708 0000797923-99-000006.hdr.sgml : 19990708 ACCESSION NUMBER: 0000797923-99-000006 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990430 FILED AS OF DATE: 19990707 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: 99660187 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 ANNUAL REPORT Dreyfus Premier Municipal Bond Fund ANNUAL REPORT April 30, 1999 Year 2000 Issues (Unaudited) The fund could be adversely affected if the computer systems used by The Dreyfus Corporation and the fund's other service providers do not properly process and calculate date-related information from and after January 1, 2000. The Dreyfus Corporation is working to avoid Year 2000-related problems in its systems and to obtain assurances from other service providers that they are taking similar steps. In addition, issuers of securities in which the fund invests may be adversely affected by Year 2000-related problems. This could have an impact on the value of the fund's investments and its share price. Contents THE FUND - -------------------------------------------- 2 Letter from the President 3 Discussion of Fund Performance 6 Fund Performance 8 Statement of Investments 17 Statement of Assets and Liabilities 18 Statement of Operations 19 Statement of Changes in Net Assets 21 Financial Highlights 24 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, 1998 through April 30, 1999. Inside, you'll find valuable information about how the Fund was managed during the period, including a discussion with the Fund's portfolio manager, Sam Weinstock. The past year has generally been rewarding for municipal bond investors. Lower short-term interest rates adopted by the Federal Reserve Board and other central banks in the fall of 1998 appear to have helped many U.S. businesses withstand the effects of economic weakness in Japan, Asia and Latin America. At the same time, the U.S. economy has entered its eighth year of expansion in an environment characterized by low inflation and high levels of consumer spending. In the second half of the reporting period, tax-exempt fixed-income securities provided good results, especially relative to taxable U.S. Treasury securities. While prices of U.S. Treasury securities declined significantly through the second half of the reporting period, a lack of new issuance relative to robust investor demand supported most municipal bond prices, which have remained relatively unchanged over the past six months. As a result, the differences in valuations between taxable U.S. Treasury securities and tax-exempt bonds, which reached historically wide levels last October, have since narrowed to a more historically normal relationship. We appreciate your confidence over the past year, and we look forward to your continued participation in Dreyfus Premier Municipal Bond Fund. Sincerely, /s/Stephen E. Canter Stephen E. Canter President and Chief Investment Officer The Dreyfus Corporation May 13, 1999 2 DISCUSSION OF FUND PERFORMANCE Sam Weinstock, Portfolio Manager How did Dreyfus Premier Municipal Bond Fund perform? The Fund's Class A shares produced a total return of 3.96% over the 12-month period ended April 30, 1999, 1 compared to a total return of 5.78% for the Lipper General Municipal Debt Funds category.2 The Fund produced a total return of 3.43% for Class B shares and 3.16% for Class C shares over the 12-month period ended April 30, 1999. 1 The Fund's performance during the period was negatively impacted by two large positions that significantly lagged the market. One position was sold during the period. The second position remains in the portfolio based on its continuing high credit rating and our belief regarding its potential for improved performance in 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 from a diversified portfolio of municipal bonds. To achieve this 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 year or two. Second, we evaluate issuers' credit quality to find bonds that we believe provide the best risk-reward trade-off at an attractive price. 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 portfolio will have several of these qualities. We also evaluate bonds' likely performance under various market scenarios. When we find securities that we believe will provide the best expected returns over an anticipated market range, we select them. Other securities may be held because they both participate in market rallies and provide protection against market declines. The Fund 3 DISCUSSION OF FUND PERFORMANCE (continued) What other factors influenced the Fund's performance? When the Asian currency and credit crisis spread to Russia and threatened Latin America last summer and fall, investors flocked to U.S. Treasury securities. As a result, yields on taxable Treasuries fell briefly in October to levels that were roughly equivalent to yields on comparable tax-exempt bonds. However, the Federal Reserve Board and other central banks moved quickly to stimulate global economic growth. Because investors feared that a stronger economy might reignite inflationary pressures, yields on longer term bonds rose throughout the first four months of 1999. However, the extent of that rise was much greater for taxable U.S. Treasury securities than for tax-free municipal bonds. In addition, because of strong economic conditions throughout the country, many states and municipalities have had less need to borrow. Yet, demand from investors seeking to minimize their income tax liabilities has remained high. This balance between supply and demand helped keep municipal bond prices relatively stable while U.S. Treasury bond prices fell sharply. As a result, as of April 30, long-term tax-exempt bonds provided about 90% of the yield of taxable U.S. Treasury securities. What is the Fund's current strategy? We continue to search for bonds with attractive characteristics. We have found such securities, in our opinion, in intermediate-maturity bonds. In our view, these bonds have represented better values than longer term bonds because they provided most of the yield with substantially less potential volatility. Their returns are favorable due to the expected slightly lower yields realized as the maturities of the bonds 4 shorten over time. Accordingly, we have structured the portfolio to emphasize bonds with maturities in the 15- to 20-year range, which can achieve this advantage. May 13, 1999 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. Some income may be subject to the Federal Alternative Minimum Tax (AMT) for certain shareholders. 2 Source: Lipper Analytical Services, Inc. The Fund 5 FUND PERFORMANCE [INSERT GRAPH] $21,615 Lehman Brothers Municipal Bond Index* $20,577 Dreyfus Premier Municipal Bond Fund (Class A Shares) Comparison of change in value of $10,000 investment in the Fund's Class A shares and the Lehman Brothers Municipal Bond Index * Source: Lehman Brothers. 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 4/30/89 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. 6 - -------------------------------------------------------------------------------- Average Annual Total Returns as of 4/30/99 Inception From Date 1 Year 5 Years 10 Years Inception - -------------------------------------------------------------------------------- Class A Shares with sales charge (4.5%) (11/26/86) (0.70)% 6.06% 7.48% -- without sales charge (11/26/86) 3.96% 7.04% 7.98% -- Class B Shares with redemption* (1/15/93) (0.48)% 6.17% -- 6.12% without redemption (1/15/93) 3.43% 6.49% -- 6.12% Class C Shares with redemption** (7/13/95) 2.18% -- -- 5.55% without redemption (7/13/95) 3.16% -- -- 5.55% Past performance is not predicitive of future performance. * The maximum contingent deferred sales charge for Class B shares is 4% and is reduced to 0% after six years. ** 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 7 STATEMENT OF INVESTMENTS April 30, 1999 - -------------------------------------------------------------------------------- Principal Long-Term Municipal Investments--100.3% Amount($) Value ($) - -------------------------------------------------------------------------------- Arizona--1.0% Maricopa County Pollution Control Corporation, PCR, Refunding (Public Service Co.--New Mexico Project) 6.30%, 12/1/2026 5,000,000 5,262,300 California--3.5% Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue: 6%, 1/1/2034 5,000,000 5,372,050 5%, 1/1/2035 8,000,000 7,610,560 San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue (Senior Lien) 5%, 1/1/2033 6,500,000 6,189,950 Colorado--9.2% Arapahoe County Capital Improvement Trust Fund, Highway Revenue (E-470 Project): Zero Coupon, 8/31/2005 2,530,000 1,946,860 Zero Coupon, 8/31/2007 (Prerefunded 8/31/2005)a 4,000,000 2,746,840 7%, 8/31/2026 (Prerefunded 8/31/2005)a 11,000,000 13,096,490 Dawson Ridge, Metropolitan District Number 1, Refunding: Zero Coupon, 10/1/2017 9,930,000 3,492,083 Zero Coupon, 10/1/2022 47,535,000 12,587,268 Denver City and County, Airport Revenue: 7.50%, 11/15/2023 (Prerefunded 11/15/2004)a 2,060,000 2,448,804 7.50%, 11/15/2023 9,715,000 11,094,044 7%, 11/15/2025 3,405,000 3,601,741 Connecticut--4.4% Connecticut Clean Water Fund, Revenue: 4.75%, 9/1/2017 3,000,000 2,943,990 4.875%, 9/1/2022 3,000,000 2,946,450 Connecticut Development Authority: First Mortgage Gross Revenue (Elim Park Baptist Home, Inc. Project) 9%, 12/1/2020 (Prerefunded 12/1/1999)a 3,000,000 3,185,250 PCR, Refunding (Connecticut Light & Power) 5.85%, 9/1/2028 8,000,000 8,084,880 Connecticut Health and Educational Facilities Authority, Revenue, Refunding (Norwalk Hospital): 4.625%, 7/1/2013 (Insured; FSA) 670,000 661,055 4.70%, 7/1/2014 (Insured; FSA) 535,000 528,398 5%, 7/1/2019 (Insured; FSA) 1,000,000 991,780 8 - -------------------------------------------------------------------------------- Principal Long-Term Municipal Investments (continued) Amount($) Value ($) - -------------------------------------------------------------------------------- Connecticut (continued) Mashantucket Western Pequot Tribe, Special Revenue 5.75%, 9/1/2027d 4,750,000 4,881,860 Delaware--.7% Delaware Housing Authority, MFMR 7%, 5/1/2025 3,725,000 4,035,292 Florida--6.5% Florida Department of Transportation, Refunding (Right of Way) 4.75%, 7/1/2020 9,875,000 9,436,155 Lee County Industrial Development Authority, Health Care Facilities Revenue (Cypress Cove Health Park): 5.625%, 10/1/2002 2,000,000 2,027,460 5.875%, 10/1/2004 2,000,000 2,058,200 6.25%, 10/1/2017 3,000,000 3,122,160 Palm Beach County, Solid Waste IDR: (Okeelanta Power LP Project) 6.85%, 2/15/2021b 6,750,000 5,163,750 (Osceola Power LP) 6.95%, 1/1/2022b 7,500,000 5,662,500 Santa Rosa Bay Bridge Authority, Revenue 6.25%, 7/1/2028 3,000,000 3,295,050 Tampa Bay Water Utilities Systems Revenue, Refunding 5.125%, 10/1/2017 (Insured; FGIC) 5,350,000 5,433,514 Georgia--1.3% Burke County Development Authority, PCR (Georgia Power Co.--Plant Vogtle) 5.45%, 5/1/2034 7,000,000 6,951,280 Hawaii--.3% Hawaii Department of Transportation, Special Facilities Revenue (Continental Airlines, Inc.) 5.625%, 11/15/2027 1,850,000 1,843,432 Illinois--2.4% Carol Stream, First Mortgage Revenue, Refunding (Windsor Park Manor Project) 6.50%, 12/1/2007 2,000,000 2,155,580 Chicago O'Hare International Airport, Special Facility Revenue: 6.386%, 4/1/2011c,d 2,725,000 2,794,923 Refunding (United Airlines Project) 5.20%, 4/1/2011 50,000 50,641 East Chicago, PCR, Refunding (Inland Steel Co. Project) 7.125%, 6/1/2007 3,000,000 3,111,480 Illinois Development Finance Authority, Revenue (Community Rehabilitation Providers Facility): 8.75%, 3/1/2010 177,000 182,347 8.50%, 9/1/2010 1,550,000 1,628,601 8.25%, 8/1/2012 3,815,000 3,393,595 The Fund 9 STATEMENT OF INVESTMENTS (continued) - -------------------------------------------------------------------------------- Principal Long-Term Municipal Investments (continued) Amount($) Value ($) - -------------------------------------------------------------------------------- Indiana--3.5% Indiana Development Finance Authority: Environmental Improvement Revenue, Refunding (USX Corp. Project) 6.15%, 7/15/2022 4,000,000 4,231,720 Exempt Facilities Revenue, Refunding (Inland Steel) 5.75%, 10/1/2011 11,500,000 10,851,400 PCR, Refunding (Inland Steel Co., Project Number 12) 6.85%, 12/1/2012 4,000,000 4,080,360 Kentucky--1.7% Kentucky Economic Development Finance Authority, Hospital System Improvement Revenue, Refunding (Appalachian Regional Health Center) 5.85%, 10/1/2017 3,000,000 3,055,080 Perry County, SWDR (TJ International Project): 7%, 6/1/2024 3,500,000 3,798,830 6.55%, 4/15/2027 2,500,000 2,678,750 Louisiana--.8% Louisiana Housing Finance Agency, MFHR, Refunding (LaBelle Projects) 9.75%, 10/1/2020 4,130,000 4,420,174 Maryland--.6% Maryland Energy Financing Administration, SWDR (Wheelabrator Water Projects) 6.45%, 12/1/2016 3,000,000 3,272,100 Massachusetts--2.1% Massachusetts Industrial Finance Agency: Health Care Facility Revenue (Metro Health Foundation, Inc. Project) 6.75%, 12/1/2027 8,000,000 8,502,160 Water Treatment Revenue (American Hingham) 6.95%, 12/1/2035 2,640,000 2,895,420 Michigan--2.0% Michigan Hospital Finance Authority, HR, Refunding (Genesys Regional Medical--A) 5.375%, 10/1/2013 4,000,000 4,052,040 Wayne Charter County, Special Airport Facilities Revenue, Refunding (Northwest Airlines, Inc.) 6.75%, 12/1/2015 4,985,000 5,409,273 Wayne County Building Authority 8%, 3/1/2017 (Prerefunded 3/1/2002)a 1,500,000 1,694,070 New Jersey--5.3% New Jersey Building Authority, Building Revenue, Refunding: 5%, 6/15/2011 45,000 46,386 6.301%, 6/15/2011c,d 6,400,000 6,804,864 10 - -------------------------------------------------------------------------------- Principal Long-Term Municipal Investments (continued) Amount($) Value ($) - -------------------------------------------------------------------------------- New Jersey (continued) New Jersey Economic Development Authority, First Mortgage Gross Revenue (The Evergreens) 9.25%, 10/1/2022 (Prerefunded 10/1/2002)a 15,000,000 17,811,300 New Jersey Sports and Exposition Authority, Revenue, Refunding (Monmouth Park) 8%, 1/1/2025 (Prerefunded 1/1/2005)a 4,000,000 4,835,040 New Mexico--1.5% Farmington, PCR: Refunding (Public Service Co. --San Juan Project) 6.375%, 4/1/2022 5,000,000 5,326,850 (Tucson Electric Power Co. of San Juan) 6.95%, 10/1/2020 3,000,000 3,268,350 New York--18.2% Long Island Power Authority, Electric System Revenue 5.125%, 4/1/2012 (Insured; MBIA) 7,000,000 7,255,220 New York City: 7.10%, 2/1/2009 560,000 612,668 5.25%, 3/15/2011 200,000 209,262 6.604%, 3/15/2011c,d 3,900,000 4,268,472 5.25%, 3/15/2012 200,000 208,340 6.604%, 3/15/2012c,d 1,900,000 2,061,994 5%, 3/15/2021 3,925,000 3,805,445 New York City Industrial Development Agency IDR, Refunding (Laguardia Associates LP Project) 5.80%, 11/1/2013 8,710,000 8,760,866 New York City Transitional Finance Authority, Future Tax Secondary Revenue: 5.25%, 11/15/2011 5,000,000 5,284,350 5.25%, 11/15/2012 5,000,000 5,251,400 New York State Dormitory Authority, Revenues, Refunding: (Special Act School Districts Program) 5.25%, 7/1/2013 (Insured; FSA) 3,000,000 3,132,990 (State University Educational Facilities) 5.50%, 5/15/2013 3,000,000 3,230,190 New York State Energy Research and Development Authority, Electric Facilities Revenue (Long Island Lighting Co.): 7.15%, 9/1/2019 2,535,000 2,748,346 7.15%, 9/1/2019 (Prerefunded 6/15/2002)a 1,115,000 1,241,497 7.15%, 6/1/2020 2,980,000 3,230,797 7.15%, 6/1/2020 (Prerefunded 6/15/2002)a 1,020,000 1,135,719 7.15%, 12/1/2020 1,320,000 1,431,091 7.15%, 12/1/2020 (Prerefunded 6/15/2002)a 3,680,000 4,103,274 7.15%, 2/1/2022 (Prerefunded 6/15/2002)a 7,500,000 8,350,875 The Fund 11 STATEMENT OF INVESTMENTS (continued) - -------------------------------------------------------------------------------- Principal Long-Term Municipal Investments (continued) Amount($) Value ($) - -------------------------------------------------------------------------------- New York (continued) New York State Local Government Assistance Corporation: 6.252%, 4/1/2012c,d 6,900,000 7,286,262 Refunding: 5%, 4/1/2012 (Insured; FGIC) 105,000 107,801 5.25%, 4/1/2013 (Insured; AMBAC) 6,000,000 6,271,620 New York State Thruway Authority Service Contract Revenue: 6.754%, 4/1/2010c,d 4,950,000 5,373,423 Refunding (Local Highway and Bridge) 5.25%, 4/1/2010 100,000 104,196 New York State Urban Development Corporation, Revenue (Correctional Facilities Service Contract) 4.75%, 1/1/2018 (Insured; AMBAC) 1,850,000 1,784,381 Port Authority of New York and New Jersey, Special Obligation Revenue 4.75%, 1/15/2026 (Insured; AMBAC) 800,000 758,784 (Special Project--JFK International Airport Terminal) 6.25%, 12/1/2013 (Insured; MBIA) 6,000,000 6,942,480 Scotia Housing Authority, Housing Revenue (Coburg Village, Inc. Project) 6.10%, 7/1/2018 5,400,000 5,451,732 North Carolina--2.9% Charlotte, Special Facilities Revenue, Refunding (Charlotte/Douglas International Airport) 5.60%, 7/1/2027 5,000,000 4,996,050 North Carolina Eastern Municipal Power Agency, Power System Revenue, Refunding: 7%, 1/1/2013 3,500,000 4,089,925 6%, 1/1/2014 6,750,000 7,009,943 Ohio--1.6% Ohio Water Development Authority, Pollution Control Facilities Revenue, Refunding (Cleveland Electric) 6.10%, 8/1/2020 8,500,000 8,733,750 Oklahoma--1.4% Holdenville Industrial Authority, Correctional Facility Revenue: 6.60%, 7/1/2010 (Prerefunded 7/1/2006)a 2,045,000 2,390,932 6.70%, 7/1/2015 (Prerefunded 7/1/2006)a 4,625,000 5,435,855 Oregon--.4% Oregon, EDR, Refunding (Georgia Pacific Corp. Project) 5.70%, 12/1/2025 2,000,000 2,040,520 Pennsylvania--4.1% Blair County Hospital Authority, Revenue (Altoona Hospital) 8.292%, 7/1/2013 (Insured; AMBAC)c 5,000,000 5,787,800 Dauphin County General Authority, Office and Parking Revenue (Riverfront Office) 5.50%, 1/1/2008 4,205,000 4,180,359 12 - -------------------------------------------------------------------------------- Principal Long-Term Municipal Investments (continued) Amount($) Value ($) - -------------------------------------------------------------------------------- Pennsylvania (continued) Lancaster County Hospital Authority, Revenue (Health Center--United Church Homes Project) 9.125%, 10/1/2014 (Prerefunded 10/1/1999)a 1,465,000 1,528,259 Montgomery County Higher Education and Health Authority, First Mortgage Revenue (AHF/Montgomery, Inc. Project) 10.50%, 9/1/2020 3,430,000 3,661,491 Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue (Philadelphia Funding Program) 6.80%, 6/15/2022 (Prerefunded 6/15/2002)a 2,000,000 2,184,680 Philadelphia, Water and Sewer Revenue 7.35%, 9/1/2004 4,900,000 5,526,612 Rhode Island--.6% Providence, Special Tax Increment Obligation 6.65%, 6/1/2016 3,000,000 3,275,130 Tennessee--2.6% Memphis Center Revenue Finance Corporation, Sports Facility Revenue (Memphis Redbirds) 6.50%, 9/1/2028 8,000,000 8,138,320 Shelby County Health Educational and Housing Facilities, Multi-Family Housing Board Revenue (Cameron Kirby): 5.90%, 7/1/2018 3,000,000 3,142,260 7.25%, 7/1/2023 3,100,000 3,273,011 Texas--10.0% Alliance Airport Authority, Special Facilities Revenue: 8.736%, 4/1/2021c,d 2,500,000 2,894,000 (Federal Express Corp. Project) 6.375%, 4/1/2021 40,000 43,152 Austin, Revenue, Refunding 5.25%, 5/15/2025 (Insured; MBIA) 12,040,000 12,430,818 Gulf Coast Waste Disposal Authority, Revenue (Waste Disposal--Valero Energy Corp.) 5.60%, 4/1/2032 6,000,000 5,919,720 Houston Airport System, Special Facilities Improvement Revenue (Continental Airlines Terminal): 6.125%, 7/15/2017 (Guaranteed; Continental Airlines, Inc.) 8,375,000 8,610,421 6.125%, 7/15/2027 (Guaranteed; Continental Airlines, Inc.) 6,800,000 6,968,776 Rio Grande City Consolidated Independent School District, Public Facilities Corp. LR 6.75%, 7/15/2010 6,000,000 6,559,620 Texas Public Property Finance Corp., Revenue (Mental Health and Retardation Center) 8.20%, 10/1/2012 (Prerefunded 10/1/2002)a 7,745,000 8,958,642 Tyler Health Facilities Development Corporation, HR, Refunding (Mother Frances Hospital) 5.625%, 7/1/2013 2,680,000 2,694,794 The Fund 13 STATEMENT OF INVESTMENTS (continued) - -------------------------------------------------------------------------------- Principal Long-Term Municipal Investments (continued) Amount($) Value ($) - -------------------------------------------------------------------------------- Utah--2.4% Carbon County, SWDR, Refunding: (East Carbon Development Corp.) 9%, 7/1/2012 3,900,000 4,190,433 (Sunnyside Cogeneration) 9.25%, 7/1/2018b 15,000,000 9,003,000 Virginia--.4% Henrico County Industrial Development Authority, Solid Waste Revenue (Browning Ferris Industry, Inc.) 5.875%, 3/1/2017 2,000,000 2,001,320 West Virginia--1.4% Upshur County, SWDR (TJ International Project) 7%, 7/15/2025 7,000,000 7,725,760 U.S. Related--7.5% Puerto Rico Commonwealth: Public Improvement: 5.25%, 7/1/2014 (Insured; MBIA) 2,925,000 3,132,441 Refunding: 5.50%, 7/1/2012 (Insured; MBIA) 1,000,000 1,094,830 5.50%, 7/1/2013 (Insured; MBIA) 5,000,000 5,483,500 6.50%, 7/1/2014 (Insured; MBIA) 5,000,000 6,031,900 Zero Coupon, 7/1/2015 (Insured; MBIA) 2,400,000 1,112,856 Refunding: 6.25%, 7/1/2013 (Insured; MBIA) 3,000,000 3,522,960 5.65%, 7/1/2015 (Insured; MBIA) 10,690,000 11,849,758 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue 5%, 7/1/2036 5,000,000 4,962,050 Puerto Rico Telephone Authority, Revenue, Refunding 6.44%, 1/25/2007 (Insured; MBIA, Prerefunded 1/1/2003)a,c 3,950,000 4,394,375 Total Long-Term Municipal Investments (cost $534,502,000) 554,436,278 - -------------------------------------------------------------------------------- Principal Short-Term Municipal Investments--1.4% Amount ($) Value ($) - -------------------------------------------------------------------------------- Connecticut--.3% Connecticut Development Authority, Health Care Revenue, VRDN (Independent Living Project) 3.80% (LOC; Chase Manhattan Bank)e 1,665,000 1,665,000 Minnesota--.1% Beltrami County, Environmental Control Revenue, VRDN (Northwood Panelboard Co. Project) 3.35% (LOC; Union Bank of Switzerlande 300,000 300,000 Minneapolis Community Development Agency, PCR, VRDN (Northern States Power Co. Project) 4.05% (LOC; Union Bank of Switzerland)e 510,000 510,000 14 - -------------------------------------------------------------------------------- Principal Short-Term Municipal Investments (continued) Amount ($) Value ($) - -------------------------------------------------------------------------------- New York--.8% Long Island Power Authority, Electric System Revenue, VRDN 4.25% (LOC; ABN AMRO Bank)e 4,400,000 4,400,000 U.S. Related--.2% Puerto Rico Commonwealth Government Development Bank, Refunding, VRDN 3.80% (Insured; MBIA)e 1,300,000 1,300,000 Total Short-Term Municipal Investments (cost $8,175,000) 8,175,000 - -------------------------------------------------------------------------------- Total Investments (cost $542,677,000) 101.7% 562,611,278 Liabilities, Less Cash and Receivables (1.7%) (9,657,122) Net Assets 100.0% 552,954,156 The Fund 15 STATEMENT OF INVESTMENTS (continued) - -------------------------------------------------------------------------------- Summary of Abbreviations AMBAC American Municipal Bond MBIA Municipal Bond Assurance Corporation Investors Assurance EDR Economic Development Revenue Insurance Corporation FGIC Financial Guaranty MFHR Multi-Family Insurance Company Housing Revenue FSA Financial Security MFMR Multi-Family Assurance Mortgage Revenue HR Hospital Revenue PCR Pollution Control Revenue IDR Industrial Development Revenue SWDR Solid Waste LOC Letter of Credit Disposal Revenue LR Lease Revenue VRDN Variable Rate Demand Notes - -------------------------------------------------------------------------------- Summary of Combined Ratings (Unaudited) Fitch or Moody's or Standard & Poor's Value(%) - -------------------------------------------------------------------------------- AAA Aaa AAA 26.0 AA Aa AA 3.6 A A A 9.4 BBB Baa BBB 17.1 BB Ba BB 8.7 B B B 3.1 F-1+ & F-1 MIG1, VMIG1 & P1SP1 & A1 1.4 Not Rated (f) Not Rated (f) Not Rated (f) 30.7 100.0 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 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 registration, normally to qualified institutional buyers. At April 30, 1999, these securities amounted to $36,365,798 or 6.6% of net assets. e Securities payable on demand. Variable interest rate--subject to periodic change. f Securities which, while not rated by Fitch, Moody's and Standard & Poor's, have been determined by the Manager to be of comparable quality to those rated securities in which the Fund may invest. See notes to financial statements. 16 STATEMENT OF ASSETS AND LIABILITIES April 30, 1999 - -------------------------------------------------------------------------------- Cost Value - -------------------------------------------------------------------------------- Assets ($): Investments in securities-- See Statement of Investments 542,677,000 562,611,278 Interest receivable 8,242,280 Receivable for shares of Beneficial Interest subscribed 207,805 Prepaid expenses 34,905 571,096,268 - -------------------------------------------------------------------------------- Liabilities ($): Due to The Dreyfus Corporation and affiliates 272,168 Due to Distributor 166,426 Cash overdraft due to Custodian 4,259,570 Payable for investment securities purchased 12,883,802 Payable for shares of Beneficial Interest redeemed 194,751 Accrued expenses 365,395 18,142,112 - -------------------------------------------------------------------------------- Net Assets ($) 552,954,156 - -------------------------------------------------------------------------------- Composition of Net Assets ($): Paid-in capital 527,278,756 Accumulated net realized gain (loss) on investments 5,741,122 Accumulated net unrealized appreciation (depreciation) on investments--Note 4 19,934,278 - -------------------------------------------------------------------------------- Net Assets ($) 552,954,156 - -------------------------------------------------------------------------------- Net Asset Value Per Share Class A Class B Class C - -------------------------------------------------------------------------------- Net Assets ($) 432,276,105 112,583,364 8,094,687 Shares Outstanding 30,165,711 7,854,603 564,093 - -------------------------------------------------------------------------------- Net Asset Value Per Share ($) 14.33 14.33 14.35 See notes to financial statements. The Fund 17 STATEMENT OF OPERATIONS Year Ended April 30,1999 - -------------------------------------------------------------------------------- Investment Income ($) - -------------------------------------------------------------------------------- Income Interest Income 33,513,976 Expenses: Management fee--Note 3 (a) 3,144,295 Shareholder servicing costs--Note 3 (c) 1,786,392 Distribution fees--Note 3 (b) 652,029 Professional fees 64,987 Custodian fees 62,307 Registration fees 55,739 Prospectus and shareholders' reports 36,950 Trustees' fees and expenses--Note 3 (d) 31,951 Loan commitment fees--Note 2 3,390 Miscellaneous 26,471 Total Expenses 5,864,511 Investment Income--Net 27,649,465 - -------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments--Note 4: Net realized gain (loss) on investments 8,312,856 Net unrealized appreciation (depreciation) on investments (14,148,587) Net Realized and Unrealized Gain (Loss) on Investments (5,835,731) Net Increase in Net Assets Resulting From Operations 21,813,734 See notes to financial statements. 18 STATEMENT OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- Year Ended April 30, ----------------------------------- 1999 1998 - -------------------------------------------------------------------------------- Operations ($): Investment income--net 27,649,465 30,469,152 Net realized gain (loss) on investments 8,312,856 10,610,253 Net unrealized appreciation (depreciation) on investments (14,148,587) 15,681,076 Net Increase (Decrease) in Net Assets Resulting from Operations 21,813,734 56,760,481 - -------------------------------------------------------------------------------- Dividends to Shareholders From ($): Investment income--net: Class A shares (22,022,212) (24,679,815) Class B shares (5,367,735) (5,696,047) Class C shares (259,518) (93,290) Net realized gain on investments: Class A shares (6,305,305) (2,600,891) Class B shares (1,759,660) (670,463) Class C shares (100,844) (13,085) Total Dividends (35,815,274) (33,753,591) - -------------------------------------------------------------------------------- Beneficial Interest Transactions ($): Net proceeds from shares sold: Class A shares 152,264,177 113,213,669 Class B shares 21,488,965 17,652,592 Class C shares 6,589,948 1,951,053 Dividends reinvested: Class A shares 16,928,404 15,608,787 Class B shares 4,048,469 3,578,795 Class C shares 93,487 41,919 Cost of shares redeemed: Class A shares (174,041,478) (156,745,426) Class B shares (29,371,046) (15,746,393) Class C shares (1,389,501) (79,409) Increase (Decrease) in Net Assets from Beneficial Interest Transactions (3,388,575) (20,524,413) Total Increase (Decrease) in Net Assets (17,390,115) 2,482,477 - -------------------------------------------------------------------------------- Net Assets ($): Beginning of Period 570,344,271 567,861,794 End of Period 552,954,156 570,344,271 See notes to financial statements. The Fund 19 STATEMENT OF CHANGES IN NET ASSETS (continued) - -------------------------------------------------------------------------------- Year Ended April 30, --------------------------------- 1999 1998 - -------------------------------------------------------------------------------- Capital Share Transactions: Class A Shares sold 10,430,316 7,726,113 Shares issued for dividends reinvested 1,160,521 1,065,410 Shares redeemed (11,923,145) (10,709,000) Net Increase (Decrease) in Shares Outstanding (332,308) (1,917,477) - -------------------------------------------------------------------------------- Class B Shares sold 1,467,908 1,206,389 Shares issued for dividends reinvested 277,529 244,184 Shares redeemed (2,023,258) (1,077,080) Net Increase (Decrease) in Shares Outstanding (277,821) 373,493 - -------------------------------------------------------------------------------- Class C Shares sold 448,068 133,508 Shares issued for dividends reinvested 6,406 2,854 Shares redeemed (95,671) (5,369) Net Increase (Decrease) in Shares Outstanding 358,803 130,993 See notes to financial statements. 20 FINANCIAL HIGHLIGHTS The following tables describe the performance for each share class for the fiscal periods indicated. Certain information reflects financial results for a single fund share. "Total return" shows how much your investment in the Fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the Fund's financial statements.
- ----------------------------------------------------------------------------------------- Year Ended April 30, - ----------------------------------------------------------------------------------------- Class A Shares: 1999 1998 1997 1996 1995 - ----------------------------------------------------------------------------------------- Per Share Data ($): Net asset value, beginning of period 14.69 14.11 13.85 13.86 13.81 Investment Operations: Investment income--net .72 .79 .82 .86 .84 Net realized and unrealized gain (loss) on investments (.15) .66 .27 (.01) .05 Total from Investment Operations .57 1.45 1.09 .85 .89 Distributions: Dividends from investment income-net (.72) (.79) (.82) (.86) (.84) Dividends from net realized gain on investments (.21) (.08) (.01) -- -- Total Distributions (.93) (.87) (.83) (.86) (.84) Net asset value, end of period 14.33 14.69 14.11 13.85 13.86 - ----------------------------------------------------------------------------------------- Total Return (%)* 3.96 10.52 8.03 6.08 6.72 - ----------------------------------------------------------------------------------------- Ratios/Supplemental Data (%): Ratio of expenses to average net assets .91 .91 .91 .92 .92 Ratio of net investment income to average net assets 4.96 5.42 5.84 5.98 6.16 Portfolio Turnover Rate 46.84 26.33 28.17 36.59 38.60 - ----------------------------------------------------------------------------------------- Net Assets, end of period ($x1,000) 432,276 447,869 457,327 474,044 495,616 * Exclusive of sales load. See notes to financial statements.
The Fund 21 FINANCIAL HIGHLIGHTS (continued)
- ----------------------------------------------------------------------------------------- Year Ended April 30, - ----------------------------------------------------------------------------------------- Class B Shares: 1999 1998 1997 1996 1995 - ----------------------------------------------------------------------------------------- Per Share Data ($): Net asset value, beginning of period 14.69 14.11 13.85 13.86 13.81 Investment Operations: Investment income--net .65 .72 .75 .78 .77 Net realized and unrealized gain (loss) on investments (.15) .66 .27 (.01) .05 Total from Investment Operations .50 1.38 1.02 .77 .82 Distributions: Dividends from investment income-net (.65) (.72) (.75) (.78) (.77) Dividends from net realized gain on investments (.21) (.08) (.01) -- -- Total Distributions (.86) (.80) (.76) (.78) (.77) Net asset value, end of period 14.33 14.69 14.11 13.85 13.86 - ----------------------------------------------------------------------------------------- Total Return (%)* 3.43 9.95 7.49 5.53 6.15 - ----------------------------------------------------------------------------------------- Ratios/Supplemental Data (%): Ratio of expenses to average net assets 1.42 1.42 1.43 1.43 1.44 Ratio of net investment income to average net assets 4.44 4.89 5.33 5.46 5.62 Portfolio Turnover Rate 46.84 26.33 28.17 36.59 38.60 - ----------------------------------------------------------------------------------------- Net Assets, end of period ($x1,000) 112,583 119,457 109,485 106,931 99,411 * Exclusive of sales load. See notes to financial statements.
22
- -------------------------------------------------------------------------------- Year Ended April 30, - -------------------------------------------------------------------------------- Class C Shares: 1999 1998 1997 1996 a - -------------------------------------------------------------------------------- Per Share Data ($): Net asset value, beginning of period 14.71 14.12 13.87 14.28 Investment Operations: Investment income--net .61 .68 .72 .60 Net realized and unrealized gain (loss) on investments (.15) .67 .26 (.41) Total from Investment Operations .46 1.35 .98 .19 Distributions: Dividends from investment income-net (.61) (.68) (.72) (.60) Dividends from net realized gain on investments (.21) (.08) (.01) -- Total Distributions (.82) (.76) (.73) (.60) Net asset value, end of period 14.35 14.71 14.12 13.87 - -------------------------------------------------------------------------------- Total Return (%) b 3.16 9.73 7.16 1.56 c - -------------------------------------------------------------------------------- Ratios/Supplemental Data (%): Ratio of expenses to average net assets 1.67 1.69 1.64 1.77c Ratio of net investment income to average net assets 4.11 4.55 5.01 4.84c Portfolio Turnover Rate 46.84 26.33 28.17 36.59 - -------------------------------------------------------------------------------- Net Assets, end of period ($x1,000) 8,095 3,019 1,049 340 a From July 13, 1995 (commencement of initial offering) to April 30, 1996. b Exclusive of sales load. c Annualized. See notes to financial statements.
The Fund 23 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. 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 24 evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service based on methods which include consideration of: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Options and financial futures on municipal and U.S. treasury securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Investments not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. (b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Interest income, adjusted for amortization of premiums and original issue discounts on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Under the terms of the custody agreement, the Fund receives net earnings credits based on available cash balances left on deposit. (c) Dividends to shareholders: It is the policy of the Fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gain 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 The Fund 25 NOTES TO FINANCIAL STATEMENTS (continued) 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 April 30, 1999, 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 $2,988 during the period ended April 30, 1999 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 April 30, 1999, Class B and Class C shares were charged $604,681 and $47,348, 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 26 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, 1999, Class A, Class B and Class C shares were charged $1,111,102, $302,340 and $15,783, 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, 1999, the Fund was charged $217,146 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 April 30, 1999 amounted to $264,748,008 and $264,012,711, respectively. At April 30, 1999, accumulated net unrealized appreciation on investments was $19,934,278, consisting of $32,397,594 gross unrealized appreciation and $12,463,316 gross unrealized depreciation. At April 30, 1999, 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 27 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, 1999 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 generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 1999 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, 1999, 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 generally accepted accounting principles. Ernst & Young LLP New York, New York June 2, 1999 28 IMPORTANT TAX INFORMATION (Unaudited) In accordance with Federal tax law, the Fund hereby makes the following designations regarding its fiscal year ended April 30, 1999: -- all the dividends paid from investment income-net are "exempt-interest dividends" (not generally subject to regular Federal income tax), and -- the Fund hereby designates $.1869 per share as a long-term capital gain distribution of the $.2067 per share paid on December 8, 1998. 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 1999 calendar year on Form 1099-DIV which will be mailed by January 31, 2000. The Fund 29 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 90 Washington Street New York, NY 10286 Transfer Agent & Dividend Disbursing Agent Dreyfus Transfer, Inc. P.O. Box 9671 Providence, RI 02940 Distributor Premier Mutual Fund Services, Inc. 60 State Street Boston, MA 02109 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 Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value (C) 1999 Dreyfus Service Corporation 022/662AR994 EX-99 2 GRAPH IN THE PRESIDENT'S LETTER OF THE ANNUAL REP. 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 EXHIBIT A: DREYFUS PREMIER PERIOD LEHMAN BROTHERS MUNICIPAL MUNICIPAL BOND FUND BOND INDEX * (CLASS A SHARES) 4/30/89 10,000 9,551 4/30/90 10,720 10,147 4/30/91 11,952 11,378 4/30/92 13,088 12,639 4/30/93 14,744 14,379 4/30/94 15,063 14,644 4/30/95 16,065 15,628 4/30/96 17,341 16,578 4/30/97 18,492 17,910 4/30/98 20,211 19,794 4/30/99 21,615 20,577 * Source: Lehman Brothers -----END PRIVACY-ENHANCED MESSAGE-----