<PAGE>
Semi-Annual Report
--------------------
Premier Limited Term
New York
Municipal Fund
--------------------
December 31, 1995
[LION]
<PAGE>
Premier Limited Term New York Municipal Fund
- ------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on the Premier Limited
Term New York Municipal Fund. For its semi-annual reporting period ended
December 31, 1995, your Fund produced total returns of 4.55%, 4.48%, 4.41%
and 4.68% for Class A, Class B, Class C and Class R shares, respectively.*
During this six-month period, the Fund paid the following income dividends,
which were exempt from Federal, State of New York and New York City personal
income taxes:** approximately $.303 per share for Class A shares, producing
an annualized distribution rate per share of 4.49%; approximately $.275 per
share for both Class B and Class C shares, producing annualized distribution
rates per share of 4.20% and 4.21%, respectively; and approximately $.319 per
share for Class R shares, producing an annualized distribution rate per share
of 4.87%.***
The Economy
Evidence that economic activity remained sluggish and that inflation
continued to be under control moved the Federal Reserve to further ease the
Federal Funds rate in December. (The Federal Funds rate is the rate at which
the nation's banks borrow money from each other; all other short-term rates
are based on this rate.) This was the second reduction for this important
short-term rate in 1995, the first occurring in July. The latest 25 basis
point reduction in December put the rate at 5.50%. Major incentives for this
additional reduction were the inflation report in November -- the increase in
the Consumer Price Index was flat for the first time in 4-1/2 years -- and the
generally slow rate of economic growth. As it did in July, the Federal
Reserve left unchanged the discount rate -- the rate at which the Federal
Reserve lends to member banks. The discount rate remained at 5.25% throughout
1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and very modest industrial production lent credence to
fears about the possibility of recession. Consumer spending was inhibited
last year by the slow rate of new job creation, sluggish growth in wages and
salaries, and the continued trend of corporate cost-related layoffs. The
lethargic pace of consumer spending last year culminated in one of the worst
holiday sales periods since the business slump in 1990-1991, despite steep
price markdowns by retailers.
Industrial production climbed modestly during the year. By November, the
nation's factories operated at only 83.1% of capacity, down for the third
consecutive month. This was a reflection of weakening demand and further
evidence of the diminishing pressure to raise prices. Furthermore,
inventories built up by year-end, another sign of slackening demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the economy. As we go
forward without a budget agreement, reductions in annually appropriated
spending will tend to retard the economy. With an agreement, the combination
of cuts in appropriations and other spending reductions should have the same
effect.
There are strong indications that inflation is under control. Until
midyear 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now, the focus seems to have shifted to actions designed to avoid
recession.
<PAGE>
Market Environment
The rally in the bond market extended through the fourth quarter of 1995,
resulting in some of the best returns in recent years. The yield on the
benchmark 30-year Treasury bond fell below 6%, a decline of over 175 basis
points for the full year. Demand for tax-exempt securities slowed during the
fourth quarter, due to concerns about the ramifications of potential tax
reform legislation. Consequently, municipal bonds underperformed taxable
fixed-income securities during the last six months of 1995.
The Fund's portfolio continued to emphasize premium coupon, high quality
issues during the period. The weighted average maturity of the Fund's
portfolio was extended slightly over the reporting period in seeking to take
advantage of the declining interest rate environment. The average maturity of
the Fund's portfolio was 6.15 years on December 31, 1995, slightly higher
than its 6.06 year average maturity at the beginning of the period on June
30, 1995.
We believe the credit outlook for New York State is stable as a mid-A
level credit. In seeking to improve the fiscal health of the State of New
York, Governor Pataki has worked hard with the business sector to maintain
existing state manufacturing jobs by building public/private coalitions to
address private sector needs. The 1997 fiscal-year budget proposed by
Governor Pataki attempts to eliminate the fiscal 1996 operating deficit by
cutting 7,400 state jobs and reducing Medicaid spending. Much of the Medicaid
savings will depend upon the passage of the Republican-sponsored bill in
Congress, a prospect that remains uncertain given the budget impasse that now
prevails in Washington.
The recently announced AT&T layoffs, combined with job reductions in the
weak retail sector, pushed the unemployment rate higher in December (6.4% vs.
6.0% in November). The growth or contraction of the retail sector will be an
important growth determinant for the State economy. We remain cautious on New
York City, which continues to struggle with budget deficits. Despite Mayor
Guiliani's cost-cutting programs over the past two years, he must cut
approximately $2 billion to balance the fiscal-year 1999 budget. However,
the mayor believes opportunity exists to implement additional cost-cutting
measures.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
John Flahive
Portfolio Manager
January 16, 1996
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains
paid, without taking into account 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 C shares.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.
***Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period 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 at the end of the period in the
case of Class B, C and R shares.
<PAGE>
Premier Limited Term New York Municipal Fund
- ------------------------------------------------------------------------------
Statement of Investments December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments--92.8% Amount Value
- ---------------------------------------------------------------------------- --------- ----------
<S> <C> <C>
New York--84.9%
Albany County 7%, 10/1/2000 (Insured; FGIC, Prerefunded 10/1/1999) (a)...... $ 125,000 $ 141,225
Amherst, Public Improvement 6.20%, 4/1/2002 (Insured; FGIC)................. 150,000 165,864
Erie County Water Authority, Water Revenue, Refunding:
6.65%, 12/1/1999 (Insured; AMBAC)....................................... 250,000 273,915
7%, 12/1/2000 (Insured; AMBAC).......................................... 200,000 225,702
Greece Central School District 6%, 6/15/2010................................ 225,000 247,840
Town of Hempstead 6.30%, 1/1/2002 (Insured; AMBAC).......................... 150,000 164,029
Metropolitan Transportation Authority, Refunding
(Service Contract Transport Facilities) 7%, 7/1/1998 (Insured; AMBAC)... 100,000 106,999
Municipal Assistance Corporation for New York City 7.10%, 7/1/2000.......... 100,000 111,056
Nassau County 7%, 7/1/2002 (Insured; AMBAC, Prerefunded 7/1/2000) (a)....... 100,000 112,697
New York State, Refunding 6.25%, 8/15/2004.................................. 200,000 222,292
New York State Dormitory Authority, Revenue:
(FIT Student Housing) 5.75%, 7/1/2006 (Insured; AMBAC).................. 130,000 138,934
Refunding:
(State University Educational) 7.125%, 5/15/2017 (Prerefunded 5/15/1999) (a) 250,000 278,897
(Vassar College) 6%, 7/1/2005 (b).................................... 250,000 274,183
New York State Housing Finance Agency, Refunding
(State University Construction) 7.15%, 11/1/1997........................ 155,000 164,384
New York State Medical Care Facilities Finance Agency, Revenue
(Mental Health Services Facilities):
6.60%, 8/15/1996..................................................... 100,000 101,721
7.75%, 8/15/2010 (Insured; MBIA, Prerefunded 2/15/2000) (a).......... 210,000 242,460
New York State Mortgage Agency, Homeowner Mortgage Revenue
7.50%, 10/1/1998.......................................................... 45,000 47,132
New York State Power Authority, General Purpose Revenue,
7%, 1/1/2018 (Prerefunded 1/1/2010) (a)................................. 100,000 121,101
New York State Thruway Authority 6%, 4/1/2005............................... 225,000 246,287
Orange County 5.10%, 11/15/2002............................................. 130,000 136,011
Oyster Bay 7.125%, 4/15/2000 (Insured; FGIC)................................ 180,000 201,301
Port Washington Union Free School District 6%, 8/1/2001..................... 125,000 134,969
Suffolk County, Public Improvement:
6.875%, 7/15/1999 (Insured; FGIC, Prerefunded 7/15/1997) (a)............ 125,000 133,245
7%, 4/1/2002 (Insured; MBIA, Prerefunded 4/1/2001) (a).................. 150,000 169,402
Triborough Bridge and Tunnel Authority, General Purpose Revenue:
7.40%, 1/1/2003 (Prerefunded 1/1/1999) (a).............................. 200,000 222,042
7%, 1/1/2011 (Prerefunded 1/1/1999) (a)................................. 150,000 164,847
Westchester County 6.625%, 11/1/2004 (c).................................... 250,000 289,260
U. S. Related--7.9%
Puerto Rico Commonwealth, Refunding 6.25%, 7/1/2011 (Insured; MBIA)......... 200,000 227,098
University of Puerto Rico, University Revenues, Refunding
6.25%, 6/1/2006......................................................... 200,000 225,744
----------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $4,963,300)..................... $5,290,637
----------
----------
</TABLE>
<PAGE>
Premier Limited Term New York Municipal Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal
Short-Term Municipal Investments--7.2% Amount Value
- --------------------------------------------------------------------------- --------- ----------
<S> <C> <C>
New York City Municipal Water Finance Authority,
Water and Sewer Systems Revenue, VRDN 2.65% (d)......................... $ 300,000 $ 300,000
New York State Energy Research and Development Authority, PCR, Refunding,
VRDN 5.90% (LOC; Morgan Guaranty Trust Co.) (d,e)....................... 110,000 110,000
----------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $410,000)...................... $ 410,000
----------
----------
TOTAL INVESTMENTS--100.0%
(cost $5,373,300)....................................................... $5,700,637
----------
----------
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
LOC Letter of Credit PCR Pollution Control Revenue
VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings
- ----------------------------------------------------------------------------------------------------------------
Fitch (f) or Moody's or Standard & Poor's Percentage of Value
- --------- ------- ----------------- -------------------
<S> <C> <C> <C>
AAA Aaa AAA 77.2%
AA Aa AA 15.2
A A A 3.9
BBB Baa BBB 1.8
F1 MIG1 SP1 1.9
------
100.0%
------
------
</TABLE>
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) Purchased on a delayed delivery basis.
(c) Wholly held by the custodian in a segregated account as collateral for a
delayed delivery security.
(d) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest rates.
(e) Secured by letters of credit.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) At December 31, 1995, the Fund had $1,464,949 (26.5%) of net assets
invested in securities whose payment of principal and interest is dependent
upon revenues generated from education projects.
See notes to financial statements.
<PAGE>
Premier Limited Term New York Municipal Fund
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1995 (Unaudited)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value (cost $5,373,300)--see Statement of Investments $5,700,637
Cash............................................................................... 11,717
Interest receivable................................................................ 90,502
----------
5,802,856
LIABILITIES:
Due to The Dreyfus Corporation--Note 2(a).......................................... $ 4,715
Due to Distributor--Note 2(b)...................................................... 543
Payable for shares of Beneficial Interest redeemed................................. 275,028
Trustees' fees payable--Note 2(c).................................................. 274 280,560
--------- ----------
NET ASSETS............................................................................. $5,522,296
----------
----------
REPRESENTED BY:
Paid-in capital................................................................... $5,181,360
Accumulated distributions in excess of investment income-net...................... (2,498)
Accumulated undistributed net realized gain on investments........................ 16,096
Accumulated gross unrealized appreciation on investments.......................... 327,338
----------
NET ASSETS at value................................................................... $5,522,296
----------
----------
NET ASSET VALUE, per share:
Class A Shares
unlimited number of shares of Beneficial Interest
($2,397,788 / 184,748 shares of Beneficial Interest outstanding)................ $12.98
------
------
Class B Shares
unlimited number of shares of Beneficial Interest
($20,372 / 1,567 shares of Beneficial Interest outstanding)..................... $13.00
------
------
Class C Shares
unlimited number of shares of Beneficial Interest
($857 / 66 shares of Beneficial Interest outstanding)........................... $12.99
------
------
Class R Shares
unlimited number of shares of Beneficial Interest
($3,103,279 / 239,112 shares of Beneficial Interest outstanding)................ $12.98
------
------
</TABLE>
See notes to financial statements.
<PAGE>
Premier Limited Term New York Municipal Fund
- ------------------------------------------------------------------------------
Statement of Operations six months ended December 31, 1995 (Unaudited)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest Income......................................................... $146,452
Expenses:
Investment management fee--Note 2(a)................................... $ 13,438
Distribution fee--Note 2(b)............................................ 3,216
Trustees' fees and expenses--Note 2(c)................................. 274
Service fee--Note 2(b)................................................. 116
--------
Total Expenses.................................................... 17,044
--------
INVESTMENT INCOME--NET............................................ 129,408
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS--Note 3:
Net realized gain on investments........................................ $ 26,496
Net realized (loss) on financial futures................................ (4,415)
--------
Net Realized Gain..................................................... 22,081
Net unrealized appreciation on investments.............................. 95,067
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 117,148
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $246,556
--------
--------
</TABLE>
See notes to financial statements.
<PAGE>
Premier Limited Term New York Municipal Fund
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1995 June 30,
(Unaudited) 1995*
----------- ----------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 129,408 $ 274,395
Net realized gain on investments..................................... 22,081 5,110
Net unrealized appreciation on investments for the period............ 95,067 74,362
---------- ----------
Net Increase In Net Assets Resulting From Operations............. 246,556 353,867
---------- ----------
DIVIDENDS TO SHAREHOLDERS:
From investment income--net:
Class A Shares..................................................... (55,972) (128,592)
Class B Shares..................................................... (206) --
Class C Shares..................................................... (1,713) (571)
Class R Shares..................................................... (74,015) (145,224)
From net realized gain on investments:
Class A Shares..................................................... -- (7,144)
Class R Shares..................................................... -- (6,625)
In excess of net realized gain on investments:
Class A Shares..................................................... -- (3,114)
Class R Shares..................................................... -- (2,887)
---------- ----------
Total Dividends.................................................. (131,906) (294,157)
---------- ----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A Shares..................................................... 48,240 2,659,825
Class B Shares..................................................... 20,000 15
Class C Shares..................................................... 76,307 66,765
Class R Shares..................................................... 254,000 2,784,534
Dividends reinvested:
Class A Shares..................................................... 40,877 95,205
Class B Shares..................................................... 208 --
Class C Shares..................................................... 1,565 528
Class R Shares..................................................... 6,949 9,422
Cost of shares redeemed:
Class A Shares..................................................... (81,893) (3,357,585)
Class B Shares..................................................... -- --
Class C Shares..................................................... (146,813) --
Class R Shares..................................................... (64,000) (2,376,553)
---------- ----------
Increase (Decrease) In Net Assets From Beneficial Interest Transactions 155,440 (117,844)
---------- ----------
Total Increase (Decrease) In Net Assets........................ 270,090 (58,134)
NET ASSETS:
Beginning of period.................................................. 5,252,206 5,310,340
---------- ----------
End of period [including distributions in excess of investment
income-net; ($2,498) on December 31, 1995]......................... $5,522,296 $5,252,206
---------- ----------
---------- ----------
<FN>
- -----------------
(*) On October 17, 1994, Investor shares and Trust shares were redesignated
Class A shares and Class R shares, respectively. The Fund commenced selling
Class B and C shares on December 28, 1994.
</TABLE>
See notes to financial statements.
<PAGE>
Premier Limited Term New York Municipal Fund
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Shares
-----------------------------------------------------------------
Class A Class B
------------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
December 31, 1995 June 30, December 31, 1995 June 30,
(Unaudited) 1995 (Unaudited) 1995
---------------- ---------- ---------------- ----------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold......................... 3,741 216,459 1,550 1
Shares issued for dividends reinvested 3,173 7,633 16 --
Shares redeemed..................... (6,349) (272,051) -- --
------- -------- ------- --------
Net Increase (Decrease) In
Shares Outstanding.............. 565 (47,959) 1,566 1
------- -------- ------- --------
------- -------- ------- --------
</TABLE>
<TABLE>
<CAPTION>
Shares
-----------------------------------------------------------------
Class C Class R
------------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
December 31, 1995 June 30, December 31, 1995 June 30,
(Unaudited) 1995 (Unaudited) 1995
---------------- ---------- ---------------- ----------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS (continued):
Shares sold......................... 5,985 5,292 19,750 224,379
Shares issued for dividends reinvested 121 42 539 756
Shares redeemed..................... (11,374) -- (5,010) (191,061)
------- -------- ------- --------
Net Increase (Decrease) In
Shares Outstanding.............. (5,268) 5,334 15,279 34,074
------- -------- ------- --------
------- -------- ------- --------
</TABLE>
See notes to financial statements.
<PAGE>
Premier Limited Term New York Municipal 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.
<TABLE>
<CAPTION>
Class A Shares
-------------------------------------------------------------------------------------
Six Months Ended Year Ended Period Ended Year Ended November 30,
December 31, 1995 June 30, June 30, -----------------------------------
PER SHARE DATA: (Unaudited) 1995(1)(2) 1994(1)(2)(3) 1993(1) 1992 1991
----------------- ---------- ------------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period..................... $12.71 $12.59 $13.04 $12.70 $12.34 $12.02
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income-net(4)....... .30 .60 .35 .66 .68 .70
Net realized and unrealized
gain (loss) on investments .27 .17 (.45) .46 .36 .32
------ ------ ------ ------ ------ ------
Total from Investment
Operations............... .57 .77 (.10) 1.12 1.04 1.02
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment
income-net................... (.30) (.60) (.35) (.66) (.68) (.70)
Dividends from net realized gain
on investments............... -- (.04) -- (.12) -- --
Dividends in excess of net realized
gain on investments......... -- (.01) -- -- -- --
------ ------ ------ ------ ------ ------
Total Distributions......... (.30) (.65) (.35) (.78) (.68) (.70)
------ ------ ------ ------ ------ ------
Net asset value, end of period $12.98 $12.71 $12.59 $13.04 $12.70 $12.34
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(5)........ 9.03%(6) 6.39% (.80%)(7) 9.00% 8.65% 8.71%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets(8)............... .75%(6) .75% .57%(6) .46% .45% .45%
Ratio of net investment income
to average net assets....... 4.58%(6) 4.83% 4.66%(6) 5.11% 5.43% 5.74%
Portfolio Turnover Rate....... 22.41%(7) 32.00% 13.00%(7) 32.00% -- --
Net Assets, end of period
(000's Omitted)............. $2,398 $2,340 $2,922 $2,100 $5,308 $5,202
<FN>
- ---------------
(1) On February 1, 1993 existing shares of the Fund were designated the
Retail Class and the Fund began offering the Institutional Class and
Investment Class of shares. Effective April 4, 1994 the Retail and
Institutional Classes were reclassified as a single class of shares known as
the Investor shares. Effective October 17, 1994, the Investor Class was
redesignated Class A shares. The Financial Highlights for the year ended
June 30, 1995 are based upon a Class A share (formerly Investor shares) outsta
nding. The amounts shown for the period ended June 30, 1994 were calculated
using the performance of a Retail share outstanding from December 1, 1993 to
April 3, 1994 and the performance of an Investor Share outstanding from April
4, 1994 to June 30, 1994. The Financial Highlights for the year ended
November 30, 1993 and prior years are based upon a Retail share outstanding.
(2) Effective October 17, 1994, The Dreyfus Corporation began serving as the
Fund's investment manager. From April 4, 1994 through October 16, 1994,
Mellon Bank, N.A. served as the Fund's investment manager. Prior to April 4,
1994, The Boston Company Advisors, Inc. served as the Fund's investment
adviser.
(3) The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
(4) Net investment income per share before waiver of fees and reimbursement
of expenses by the investment adviser and/or custodian and/or transfer agent
for the period ended June 30, 1994, for the years ended November 30, 1993,
1992 and 1991 were $.28, $.42, $.52 and $.52, respectively.
(5) Exclusive of sales load.
(6) Annualized.
(7) Not annualized.
(8) Annualized expense ratios before voluntary waiver of fees and
reimbursement of expenses by the investment adviser and/or custodian and/or
transfer agent for the period ended June 30, 1994, for the years ended
November 30, 1993, 1992 and 1991 were 1.51%, 2.32%, 1.70% and 1.88%,
respectively.
</TABLE>
See notes to financial statements
<PAGE>
Premier Limited Term New York Municipal 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.
<TABLE>
<CAPTION>
Class B
Shares Class C Shares Class R Shares
------------- ----------------------- -----------------------------------------------------
Six Months Six Months Six Months
Ended Ended Period Ended Year Period Period
December 31, December 31, Ended December 31, Ended Ended Ended
1995 1995 June 30, 1995 June 30, June 30, November 30,
PER SHARE DATA: (Unaudited)(1) (Unaudited) 1995(2) (Unaudited) 1995(3) 1994(3)(4) 1993(5)
------------ --------- ------- --------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................ $12.71 $12.71 $12.21 $12.71 $12.59 $13.04 $12.85
------ ------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net..... .28 .28 .28 .31 .64 .37(6) .57(6)
Net realized and unrealized
gain (loss) on investments .29 .28 .49 .28 .17 (.45) .31
------ ------ ------ ------ ------ ------ ------
Total from Investment
Operations........... .57 .56 .77 .59 .81 (.08) .88
------ ------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment
income-net............... (.28) (.28) (.27) (.32) (.64) (.37) (.57)
Dividends from net realized
gain on investments...... -- -- -- -- (.04) -- (.12)
Dividends in excess of net
realized gain on investments -- -- -- -- (.01) -- --
------ ------ ------ ------ ------ ------ ------
Total Distributions...... (.28) (.28) (.27) (.32) (.69) (.37) (.69)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $13.00 $12.99 $12.71 $12.98 $12.71 $12.59 $13.04
------ ------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(7)..... 8.89%(8) 8.75%(8) 6.39%(9) 9.28%(8) 6.65% (.67%)(9) 6.95%(9)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets............... 1.22%(8) 1.24%(8) 1.25%(8) .50%(8) .50% .29%(8)(10) .25%(8)(10)
Ratio of net investment income
to average net assets.... 3.98%(8) 4.17%(8) 4.34%(8) 4.82%(8) 5.08% 4.94%(8) 5.20%(8)
Portfolio Turnover Rate.... 22.41%(9) 22.41%(9) 32.00%(9) 22.41%(9) 32.00% 13.00%(9) 32.00%(9)
Net Assets, end of period
(000's Omitted).......... $20 $1 $68 $3,103 $2,844 $2,388 $2,542
<FN>
- ------------------
(1) The Fund commenced selling Class B shares on December 28, 1994.
(2) The Fund commenced selling Class C shares on December 28, 1994.
(3) Effective October 17, 1994, The Dreyfus Corporation began serving as the
Fund's investment manager. From April 4, 1994 through October 16, 1994,
Mellon Bank, N.A. served as the Fund's investment manager. Prior to April 4,
1994, The Boston Company Advisors, Inc. served as the Fund's investment
adviser.
(4) The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
(5) The Fund commenced selling Investment Class shares on February 1, 1993.
Effective April 4, 1994 the Investment Class was reclassified as the Trust
shares. Effective October 17, 1994 Trust shares were redesignated Class R
shares. The table above is based upon a Retail share outstanding from
February 1, 1993 to April 3, 1994 and a Trust share outstanding from April 4,
1994 to October 16, 1994.
(6) Net investment income per share before waiver of fees and reimbursement
of expenses by the investment adviser and/or custodian and/or transfer agent
for the periods ended June 30, 1994 and November 30, 1993 were $.30 and $.36,
respectively.
(7) Exclusive of sales load.
(8) Annualized.
(9) Not annualized.
(10) Annualized expense ratios before voluntary waiver of fees and
reimbursement of expenses by the investment adviser and/or custodian and/or
transfer agent for the periods ended June 30, 1994 and November 30, 1993 were
1.23% and 2.22%, respectively.
</TABLE>
See notes to financial statements.
<PAGE>
Premier Limited Term New York Municipal Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
The Dreyfus/Laurel Tax-Free Municipal Funds (the "Trust") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified
open-end management investment company and operates as a series company
currently offering seven series including the Premier Limited Term New York
Municipal Fund (the "Fund"). The Dreyfus Corporation ("Manager") serves as
the Fund's investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A. ("Mellon Bank").
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Distributor, located at One Exchange
Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI
Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc.,
the parent company of which is Boston Institutional Group, Inc.
The Fund currently offers four classes of shares: Class A, Class B, Class
C and Class R shares. Class A, Class B and Class C shares are sold primarily
to retail investors through financial intermediaries and bear a distribution
fee and/or service fee. Class A shares are sold with a front-end sales
charge, while Class B and Class C shares are subject to a contingent deferred
sales charge ("CDSC") and a service fee. Class R shares are sold primarily to
bank trust departments and other financial service providers (including
Mellon Bank and its affiliates) acting on behalf of customers having a
qualified trust or investment account or relationship at such institution,
and bear no distribution or service fees. Class R shares are offered without
a front-end sales load or CDSC. Each class of shares has identical rights and
privileges, except with respect to distribution and service fees and voting
rights on matters affecting a single class.
Investment Income, net of expenses (other than class specific expenses)
and realized and unrealized gains and losses are allocated daily to each
class of shares based upon the relative proportion of net assets of each
class.
(a) Portfolio Valuation: The Fund's investments (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
<PAGE>
Premier Limited Term New York Municipal Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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.
(c) Financial Futures: The Fund may invest in trading financial futures
contracts in order to gain exposure to or protect against changes in the
market. TheFund is exposed to market risk as a result of changes in the value
of the underlying financial instruments. Investments in financial futures
require the Fund to ''mark to market'' on a daily basis, which reflects the
change in the market value of the contract at the close of each day's
trading. Accordingly, variation margin payments are made or received to
reflect daily unrealized gains or losses. When the contracts are closed, the
Fund recognizes a realized gain or loss. These investments require initial
margin deposits, which consist of cash or cash equivalents, up to
approximately 10% of the contract amount. The amount of these deposits is
determined by the exchange or Board of Trade on which the contract is traded
and is subject to change. At December 31, 1995, there were no financial
futures contracts outstanding.
(d) Concentration of Risk: The Fund follows an investment policy of
investing primarily in municipal obligations of one state. Economic changes
affecting the state and certain of its public bodies and municipalities may
affect the ability of issuers within the state to pay interest on, or repay
principal of, municipal obligations held by the Fund.
(e) Distributions to Shareholders: It is the policy of the Fund to
declare dividends daily from investment income-net. Such dividends are paid
monthly. Dividends from net realized capital gain, if any, are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code. 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.
(f) 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 Internal
Revenue 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--Investment Management Fee and Other Transactions with Affiliates:
(a) Investment Management Fee: Pursuant to an Investment Management
agreement with the Manager, the Manager provides or arranges for one or more
third parties to provide investment advisory, administrative, custody, fund
accounting and transfer agency services to the Fund. The Manager also directs
the investments of the Fund in accordance with its investment objective,
policies and limitations. For these services, the Fund is contractually
obligated to pay the Manager a fee, calculated daily and paid monthly, at the
annual rate of .50% of the value of the Fund's average daily net assets. Out
of its fee, the Manager pays all of the expenses of the Fund except brokerage
fees, taxes, interest, Rule 12b-1 distribution fees and expenses, fees and
expenses of non-interested Trustees (including counsel fees) and
extraordinary expenses. In addition, the Manager is required to reduce its
fee in an amount equal to the Fund's allocable portion of fees and expenses
of the non-interested Trustees (including counsel).
(b) Distribution and Service Plan: The Fund has adopted a distribution
plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its
Class A, B and C shares. Under the Plan, the Fund may pay
<PAGE>
Premier Limited Term New York Municipal Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
annually up to .25% of the value of its average daily net assets
attributable to its Class A shares to compensate the Distributor and Dreyfus
Service Corporation, an affiliate of the Manager, for shareholder servicing
activities and the Distributor for activities and expenses primarily intended
to result in the sale of Class A shares. Under the Plan, the Fund may pay the
Distributor for distributing the Fund's Class B and Class C shares at an
aggregate annual rate of .50% of the value of the average daily net assets of
Class B and Class C shares. Class B and Class C shares are also subject to a
service plan adopted pursuant to Rule 12b-1, pursuant to which the Fund pays
Dreyfus Service Corporation or the Distributor for providing certain services
to the holders of Class B and Class C shares a fee at the annual rate of .25%
of the value of the average daily net assets of Class B and Class C shares.
Class R shares bear no service or distribution fee. For the six months ended
December 31, 1995, the service fee for Class B and Class C shares was $13 and
$103, respectively. For the six months ended December 31, 1995, the
distribution fee for Class A, Class B and Class C shares was $2,985, $26 and
$205, respectively.
Under its terms, the Plan shall remain in effect from year to year,
provided such continuance is approved annually by a vote of majority of those
Trustees who are not "interested persons" of the Company and who have no
direct or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan.
(c) Trustees' Fees: Each trustee who is not an "interested person" as
defined in the Act receives $27,000 per year, $1,000 for each Board meeting
attended and $750 for each Audit Committee attended and is reimbursed for
travel and out-of-pocket expenses. These expenses are paid in total by the
following funds: the Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel Tax-Free
Municipal Funds, and the Dreyfus/Laurel Funds Trust. In addition the
Chairman of the Board receives an annual fee of $75,000 per year. These fees
and expenses are charged and allocated to each series based on net assets.
NOTE 3--Securities Transactions:
The aggregate amount of purchase and sales of investment securities,
excluding short-term securities, during the six months ended December 31,
1995, amounted to $1,312,808 and $1,169,528, respectively.
At December 31, 1995, 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).
<PAGE>
Premier Limited Term
New York Municipal Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Trust
One Cabot Road
Medford, MA 02155
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. LTNYSA9512
