DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for the Dreyfus Premier Limited Term
New York Municipal Fund for its annual reporting period ended June 30, 1998, as
shown in the following table:
<TABLE>
Approximate
Total Return* Income Dividends** Distribution Rate***
___________ _____________________ _________________
<S> <C> <C> <C>
Class A 6.32% $0.561 4.18%
Class B 5.79% $0.496 3.81%
Class C 5.78% $0.496 3.81%
Class R 6.59% $0.593 4.57%
</TABLE>
The Fund' s Board of Trustees has approved an Agreement and Plan of
Reorganization (the "Plan") providing for the transfer of assets and liabilities
of the Fund to Dreyfus Premier Limited Term Municipal Fund (the "Municipal
Fund") in a tax-free exchange for shares of the Municipal Fund, the distribution
of such shares to Fund shareholders, and the subsequent termination of the Fund
(the "Reorganization" ). Fund shareholders will be asked to consider approving
the Plan at a special meeting of shareholders to be held on or about September
15, 1998. If the Plan is approved, the Reorganization will become effective
shortly thereafter.
THE ECONOMY
In recent testimony to Congress, Federal Reserve Board Chairman Alan Greenspan
proclaimed the economy to be " as impressive as any I have witnessed." Indeed,
the performance of the economy has been tremendous, with solid,
noninflationary economic growth and a robust rate of new job creation.
Accordingly, the unemployment rate hovers near its 28-year low. Not
surprisingly, consumers brim with confidence: new home sales were recently at
record levels, and retail sales have surged since January. The enthusiastic
spending of consumers has, so far, offset the adverse effects of the economic
problems in Asia. In fact, the financial crisis in the Far East has proved a
boon to consumers, since lower import prices have further subdued domestic
price pressures and helped keep interest rates low. Remarkably, despite the
strengthening economy since the beginning of this year, inflation has waned
further. With inflation under control and the economy just beginning to
experience a reduction in foreign demand, the Federal Reserve has been reluctant
to raise interest rates for fear of further roiling Asian financial markets. The
last increase in short-term rates came in March 1997 when the Federal Reserve
Board Open Market Committee (the policy-making arm of the Fed) hiked the target
rate for Federal Funds by one quarter of a percent to 5.5%.
Even with the booming job market, wage gains have had little inflationary
effect, since business spending in productivity-enhancing capital equipment has
been strong throughout the economic expansion. The one soft spot in the job
market has been in manufacturing: industrial production has slowed--a clear sign
that Asian economic woes are being felt here--and inventories of domestic
manufacturers have risen due to the reduction in foreign demand. It is widely
expected that the growing trade deficit will retard economic growth and possibly
serve as a drag over the foreseeable future. This reduction in foreign demand
could further moderate the rate of domestic production and consequently ease the
demand for labor, thus lessening inflationary pressure resulting from wage
increases. Cheaper imports have also weakened the pricing environment for U.S.
manufacturers and, in consequence, acted as an additional curb to inflation. All
this has been part of what Chairman Greenspan called our economy's "virtuous
cycle" where even so-called crises have proven economically beneficial. As a
further example, the economic upheavals in Asia and Russia have caused nervous
foreign investors to seek refuge in the U.S. bond market, causing a demand surge
that has helped maintain our low interest rate environment. Yet we, along with
Chairman Greenspan, are skeptical that our economy has somehow moved "beyond
history," and we share his vigilance regarding signs of inflationary imbalances
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
By the end of the reporting period, bond prices had continued to climb,
pushing yields to their lowest levels in recent memory. The turmoil surrounding
the financial crisis in the Asian markets and the benign inflationary pressures
in the domestic economy were the catalysts for the increased demand for
fixed-income securities.
Municipal bond prices continued to lag the advances in the taxable bond market
during the reporting period. The total return on the 10-year Treasury was
approximately 13.17% compared to just 8.48% for the Lehman Brothers 10-year
Municipal Bond Index. Heavy new issue volume has hampered the investment
performance of municipal bonds since supply is over 50% greater than last year
as of June 30, 1998. Total new issue volume was $146 billion for the first two
quarters of 1998 compared to $97 billion for the first two quarters of 1997. The
estimates for annual volume for 1998 have been revised higher to near $290
billion compared to approximately $218 billion during 1997. Consequently, the
relative yield ratios between AAA-rated municipal bonds and Treasury securities
ended the reporting period near recent highs. This is most dramatically apparent
in the 20- to 30-year maturity range where relative yield ratios ended the
reporting period near 90% . The weighted average maturity of the Fund was
opportunistically extended throughout the reporting period as heavy new issue
supply kept rates in a narrow range. The weighted average maturity began the
reporting period at 7.82 years and ended at 8.75 years.
The State's continued economic expansion, coupled with improved monitoring and
budget management policies, has produced three consecutive years of record
financial performance. In fiscal-year 1998, the State recorded a $2.0 billion
budgetary surplus. These results have allowed the State to reduce its large
general fund balance deficits by nearly two-thirds, putting the GAAP (Generally
Accepted Accounting Principles) deficit just under $1 billion in 1997.
Additionally, the legislature passed the 1999 budget in record time, providing
for a $902 million surplus which will likely grow over the course of the year
Yet there are risks to this financial turnaround. The State still has a
structural imbalance between revenues and expenditures which could quickly
eliminate surpluses if an economic slowdown occurred. Furthermore, the economic
expansion is not broad-based. While the financial services sector is
experiencing phenomenal growth, the overall economy has grown below the national
average. If Wall Street can resume its bull market, we believe that the State
should continue to experience good financial results. However, it is not likely
that the State' s credit rating will be upgraded. Currently, the State holds a
mid-A rating by both Standard & Poor's and Moody's. Both rating agencies cite
the narrow economic expansion and large debt levels as the primary impediments
to an improved credit rating.
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,
[Kristin Lindquist, logo signature]
Portfolio Manager
July 15, 1998
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and Class C shares.
**Income dividends per share were exempt from Federal and State of New York
and New York City personal income taxes. Some income may be subject to the
Federal Alternative Minimum Tax (AMT) for certain shareholders.
*** 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 in the case of Class B, Class C and Class R shares, adjusted for
capital gain distributions.
<TABLE>
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND JUNE 30, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER LIMITED
TERM NEW YORK MUNICIPAL FUND CLASS A SHARES WITH THE LEHMAN BROTHERS 10-YEAR
MUNICIPAL BOND INDEX AND THE LEHMAN BROTHERS 7-YEAR MUNICIPAL BOND INDEX
Dollars
$22,079
Lehman Brothers 10-Year Municipal Bond Index*
$20,169
Lehman Brothers 7-Year Municipal Bond Index*
$18,228
Dreyfus Premier Limited Term New York Municipal Fund (Class A Shares)
*Source: Lehman Brothers
Average Annual Total Returns
- -----------------------------------------------------------------------------
Class A Shares Class B Shares
_____________________________________________________________________ _________________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 6/30/98 Sales Charge Sales Charge (3.0%) Period Ended 6/30/98 Redemption Redemption*
___________________ ____________ ________________ ______________________ ______________ _________________
<S> <C> <C> <C> <C> <C>
1 Year 6.32% 3.17% 1 Year 5.79% 2.79%
5 Year 4.86 4.22 From Inception (12/28/94) 6.19 5.70
10 Year 6.52 6.19
Class C Shares Class R Shares
_______________________________________________________ _________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 6/30/98 No Redemption Redemption** Period Ended 6/30/98
______________________ ______________ __________________ ________________
1 Year 5.78% 5.04% 1 Year 6.59%
From Inception (12/28/94) 6.23 6.23 5 Year 5.09
From Inception (2/1/93) 5.59
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in the Fund's Class A shares
on 6/30/88 to a $10,000 investment made on that date in the Lehman Brothers
10-Year Municipal Bond Index (the "Lehman 10-Year Index"), as well as to an
investment in the Lehman Brothers 7-Year Municipal Bond Index (the "Lehman
7-Year Index" ) which are described below. The Lehman 7-Year Index began in
January of 1990. This investment assumes a beginning value of $11,044 which is
equal to the value of the $10,000 investment in the Fund at the starting point
of this Index, without taking into account the Fund's maximum initial sales
charge on Class A shares. All dividends and capital gain distributions are
reinvested. Performance for Class B, Class C and Class R shares will vary from
the performance of Class A shares shown above due to differences in charges and
expenses.
The Fund invests primarily in New York investment-grade municipal bonds with
intermediate maturities and expects to maintain an average maturity of less than
10 years. The Fund's 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. Unlike the Fund, the Lehman 10-Year Index is an unmanaged total return
performance benchmark for the investment-grade, geographically unrestricted
10-year tax exempt bond market, consisting of municipal bonds with maturities of
9-12 Years. The Lehman 7-Year Index consists of bonds with similar
characteristics with maturities of 6-8 years. The Indices do not take into
account charges, fees and other expenses and are not limited to investments
principally in New York municipal obligations.These factors can contribute to
the Indices potentially outperforming 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.
*The maximum contingent deferred sales charge for Class B shares is 3% and is
reduced to 0% after five years.
**The maximum contingent deferred sales charge for Class C shares is .75% for
shares redeemed within one year of the date of purchase.
<TABLE>
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS JUNE 30, 1998
Principal
Long-Term Municipal Investments--97.1% Amount Value
- ------------------------------------------------------- ____________ ____________
NEW YORK--92.4%
<S> <C> <C>
Amherst, Public Improvement 6.20%, 4/1/2002 (Insured; FGIC) $ 150,000 $ 160,987
Erie County Water Authority, Water Revenue, Refunding:
6.65%, 12/1/1999 (Insured; AMBAC) 250,000 260,207
7%, 12/1/2000 (Insured; AMBAC) 200,000 214,356
Greece Central School District 6%, 6/15/2010 225,000 254,495
Town of Hempstead 6.30%, 1/1/2002 (Insured; AMBAC) 150,000 160,489
Metropolitan Transportation Authority:
Commuter Facilities Revenue (Grand Central Terminal)
5.70%, 7/1/2024 (Insured; FSA) 200,000 209,476
Transportation Facilities Revenue 6.30%, 7/1/2007 (Insured; MBIA) 250,000 282,910
Monroe County, Public Improvement 7%, 6/1/2003 (Insured; FGIC) 200,000 224,884
Municipal Assistance Corporation for New York City:
7.10%, 7/1/2000 (Prerefunded 7/1/1999 (a) 100,000 105,321
6%, 7/1/2005 (Insured; AMBAC) 100,000 109,901
Nassau County:
7%, 7/1/2002 (Insured; AMBAC, Prerefunded 7/1/2000) (a) 100,000 106,952
6.30%, 11/1/2003 (Insured; FGIC) 200,000 219,928
New York City:
5.75%, 8/1/2012 100,000 106,396
Refunding 7%, 8/1/2006 300,000 347,598
New York City Municipal Water Finance Authority,
Water and Sewer Systems Revenue 5.50%, 6/15/2027 (Insured; MBIA) 250,000 258,615
New York State, Refunding 6.25%, 8/15/2004 200,000 220,736
New York State Dormitory Authority, Revenue:
(Consolidated City University) 5.75%, 7/1/2018 (Insured; FSA) 200,000 220,168
(FIT Student Housing) 5.75%, 7/1/2006 (Insured; AMBAC) 130,000 141,593
Refunding:
(Mental Health Services Facilities) 6%, 8/15/2005 260,000 283,119
(Vassar College) 6%, 7/1/2005 250,000 276,818
(Rochester Institute of Technology) 5.50%, 7/1/2006 (Insured; MBIA) 200,000 215,054
New York State Local Government Assistance Corporation 6.375%, 4/1/2000 200,000 208,172
New York State Mortgage Agency, Homeowner Mortgage Revenue
7.50%, 10/1/1998 45,000 45,261
New York State Power Authority, General Purpose Revenue
7%, 1/1/2018 (Prerefunded 1/1/2010) (a) 300,000 365,712
New York State Urban Development Corporation, Revenue:
(Higher Education Technology Grants) 5.75%, 4/1/2015 (Insured; MBIA) 500,000 530,460
Refunding (Corporation Purpose) 5.50%, 7/1/2005 200,000 214,192
Orange County:
5.10%, 11/15/2002 130,000 135,337
Refunding 5.50%, 11/15/2007 250,000 270,825
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS JUNE 30, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ____________ ____________
NEW YORK (CONTINUED)
Oyster Bay 7.125%, 4/15/2000 (Insured; FGIC) $ 180,000 $ 190,193
Port Washington Union Free School District 6%, 8/1/2001 125,000 132,055
Putman County, Public Improvement, Refunding 5.25%, 4/15/2011 150,000 158,817
Suffolk County, Public Improvement
7%, 4/1/2002 (Insured; MBIA, Prerefunded 4/1/2001) (a) 150,000 160,821
Tompkins County 5.25%, 9/15/2003 250,000 262,805
Triborough Bridge and Tunnel Authority, General Purpose Revenue, Refunding:
5.75%, 1/1/2005 250,000 270,153
5.90%, 1/1/2007 100,000 110,358
Westchester County 6.625%, 11/1/2004 250,000 283,923
Western Nassau County Water Authority, Water Systems Revenue
5.50%, 5/1/2004 (Insured; AMBAC) 250,000 266,453
U. S. RELATED--4.7%
Puerto Rico Commonwealth, Refunding 6.25%, 7/1/2011 (Insured; MBIA) 200,000 231,918
Puerto Rico Commonwealth Highway and Transporation Authority,
Highway Revenue 6.25%, 7/1/2009 (Insured; MBIA) 150,000 173,078
___________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $8,034,770) $8,390,536
===========
SHORT-TERM MUNICIPAL INVESTMENTS--1.2%
- -------------------------------------------------------
New York;
New York City Municipal Water Finance Authority,
Water and Sewer Systems Revenue, VRDN 4% (b) (cost $100,000) $ 100,000 $ 100,000
===========
TOTAL INVESTMENTS (cost $8,134,770) 98.3% $8,490,536
====== ===========
CASH AND RECEIVABLES (NET) 1.7% $ 147,773
====== ===========
NET ASSETS 100.0% $8,638,309
====== ===========
</TABLE>
<TABLE>
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
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
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
______ _______ ________________ _________________
AAA Aaa AAA 65.5%
AA Aa AA 18.2
A A A 13.1
BBB Baa BBB 3.2
_______
100.0%
=======
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Bonds which are prerefunded are collateralized by U.S. Government securities
which are held in escrow and are used to pay principal and interest on
the municipal issue and to retire the bonds in full at the earliest
refunding date.
(b) 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.
(c) Fitch currently provides creditworthiness information for a limited number
of investments.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1998
Cost Value
___________ ___________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $8,134,770 $8,490,536
Cash 2,342
Interest receivable 151,675
Other assets 5,609
___________
8,650,162
___________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 4,030
Due to Distributor 384
Other liabilities 7,439
___________
11,853
___________
NET ASSETS $8,638,309
===========
REPRESENTED BY: Paid-in capital $8,239,586
Accumulated net realized gain (loss) on investments 42,957
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3 355,766
___________
NET ASSETS $8,638,309
===========
NET ASSET VALUE PER SHARE
--------------------
Class A Class B Class C Class R
___________ ____________ ____________ ____________
Net Assets $1,965,797 $ 262,298 $ 214,124 $6,196,090
Shares Outstanding 151,377 20,176 16,444 477,183
NET ASSET VALUE PER SHARE $12.99 $13.00 $13.02 $12.98
======= ======= ======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED JUNE 30, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income $460,545
EXPENSES: Management fee--Note 2(a) $ 45,163
Distribution and service fees--Note 2(b) 7,903
Merger expense--Note 5 1,829
Loan commitment fees--Note 4 99
__________
Total Expenses 54,994
_________
INVESTMENT INCOME--NET 405,551
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments $ 43,205
Net realized appreciation (depreciation)
on investments 108,872
__________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 152,077
_________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $557,628
=========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
June 30, 1998 June 30, 1997
_____________ _____________
OPERATIONS:
<S> <C> <C>
Investment income--net $ 405,551 $ 332,110
Net realized gain (loss) on investments 43,205 9,828
Net unrealized appreciation (depreciation) on investments 108,872 78,389
___________ ___________
Net Increase (Decrease) in Net Assets Resulting from Operations 557,628 420,327
___________ ___________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares (88,125) (95,673)
Class B shares (9,479) (5,389)
Class C shares (4,725) (2,540)
Class R shares (303,222) (228,486)
Net realized gain on investments:
Class A shares (2,220) (9,531)
Class B shares (287) (585)
Class C shares (103) (238)
Class R shares (7,386) (20,591)
___________ ___________
Total Dividends (415,547) (363,033)
___________ ___________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares 141,318 90,003
Class B shares 180,131 20,500
Class C shares 157,000 29,735
Class R shares 2,508,328 2,109,511
Dividends reinvested:
Class A shares 68,179 78,384
Class B shares 5,647 5,974
Class C shares 4,525 2,770
Class R shares 76,203 28,536
Cost of shares redeemed:
Class A shares (321,074) (251,709)
Class B shares (43,301) (30,000)
Class C shares (32,838) (585)
Class R shares (1,864,512) (861,594)
___________ ___________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions 879,606 1,221,525
___________ ___________
Total Increase (Decrease) in Net Assets 1,021,687 1,278,819
NET ASSETS:
Beginning of Period 7,616,622 6,337,803
___________ ___________
End of Period $8,638,309 $7,616,622
=========== ===========
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
_____________________________________
Year Ended Year Ended
June 30, 1998 June 30, 1997
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold 10,906 7,056
Shares issued for dividends reinvested 5,258 6,158
Shares redeemed (24,851) (19,696)
___________ ___________
Net Increase (Decrease) in Shares Outstanding (8,687) (6,482)
=========== ===========
Class B
________
Shares sold 13,891 1,608
Shares issued for dividends reinvested 435 469
Shares redeemed (3,348) (2,366)
___________ ___________
Net Increase (Decrease) in Shares Outstanding 10,978 (289)
=========== ===========
Class C
________
Shares sold 12,034 2,322
Shares issued for dividends reinvested 348 217
Shares redeemed (2,508) (46)
___________ ___________
Net Increase (Decrease) in Shares Outstanding 9,874 2,493
=========== ===========
Class R
________
Shares sold 194,002 165,819
Shares issued for dividends reinvested 5,874 2,244
Shares redeemed (143,588) (68,185)
___________ ___________
Net Increase (Decrease) in Shares Outstanding 56,288 99,878
=========== ===========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS 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.
Class A Shares
____________________________________________________________________________
Period Ended Year Ended
Year Ended June 30, June 30, November 30,
______________________________________________
PER SHARE DATA: 1998 1997 1996 1995(1,3) 1994(1,2,3) 1993(1)
_______ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.77 $12.65 $12.71 $12.59 $13.04 $12.70
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net .56 .59 .59 .60 .35(4) .66(4)
Net realized and unrealized gain (loss)
on investments .23 .18 (.06) .17 (.45) .46
_______ _______ _______ _______ _______ _______
TOTAL FROM INVESTMENT OPERATIONS .79 .77 .53 .77 (.10) 1.12
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net (.56) (.59) (.59) (.60) (.35) (.66)
Dividends from net realized gain on
investments (.01) (.06) -- (.04) -- (.12)
Dividends in excess of net realized gain
on investments -- -- -- (.01) -- --
_______ _______ _______ _______ _______ _______
Total Distributions (.57) (.65) (.59) (.65) (.35) (.78)
_______ _______ _______ _______ _______ _______
Net asset value, end of period $12.99 $12.77 $12.65 $12.71 $12.59 $13.04
_______ _______ _______ _______ _______ _______
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(5) 6.32% 6.17% 4.23% 6.39% (.80)%(7) 9.00%
RATIO/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .77% .75% .75% .75% .57%(6,8) .46%(8)
Ratio of net investment income
to average net assets 4.33% 4.60% 4.62% 4.83% 4.66%(6) 5.11%
Portfolio Turnover Rate 17.38% 15.00% 43.43% 32.00% 13.00%(7) 32.00%
Net Assets, end of period (000's Omitted) $1,966 $2,043 $2,106 $2,340 $2,922 $2,100
- ---------
</TABLE>
(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
Classe 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 (formerly Investor shares)
outstanding. 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 is 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 and, for the year ended November 30,
1993 were $.28 and $.42, 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 and, for the year ended November 30,
1993 were 1.51% and 2.32%, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
DREYFUS 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.
Class B Shares Class C Shares
___________________________ ___________________________ ________
Period
Ended
Year Ended June 30, Year Ended June 30, June 30,
___________________________ _______________________________ _______
PER SHARE DATA: 1998 1997 1996(1) 1998 1997 1996 1995(1)
_______ _______ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.78 $12.66 $12.71 $12.80 $12.68 $12.71 $12.21
_______ _______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net .50 .52 .54 .50 .52 .54 .28
Net realized nd unrealized gain (loss)
on investments .23 .18 (.05) .23 .18 (.03) .49
_______ _______ _______ _______ _______ _______ _______
TOTAL FROM INVESTMENT OPERATIONS .73 .70 .49 .73 .70 .51 .77
_______ _______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net (.50) (.52) (.54) (.50) (.52) (.54) (.27)
Dividends from net realized gain on
investments (.01) (.06) -- (.01) (.06) -- --
_______ _______ _______ _______ _______ _______ _______
Total Distributions (.51) (.58) (.54) (.51) (.58) (.54) (.27)
_______ _______ _______ _______ _______ _______ _______
Net asset value, end of period $13.00 $12.78 $12.66 $13.02 $12.80 $12.68 $12.71
======= ======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN(2) 5.79% 5.64% 3.85% 5.78% 5.63% 4.02% 6.39%(3)
RATIO/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.27% 1.25% 1.25% 1.28% 1.25% 1.25% 1.25%(4)
Ratio of net investment income
to average net assets 3.80% 4.09% 3.97% 3.77% 4.08% 4.15% 4.34%(4)
Portfolio Turnover Rate 17.38% 15.00% 43.43% 17.38% 15.00% 43.43% 32.00%
Net Assets, end of period (000's Omitted) $262 $118 $120 $214 $84 $52 $68
- --------------
(1) The Fund commenced selling Class B and Class C shares on December 28, 1994.
(2) Exclusive of sales load.
(3) Not annualized.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS 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.
Class R Shares
_____________________________________________________________________________
Period Ended Period Ended
Year Ended June 30, June 30, November 30,
__________________________________________
PER SHARE DATA: 1998 1997 1996 1995(1) 1994(1,2) 1993(3)
_______ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.76 $12.65 $12.71 $12.59 $13.04 $12.85
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net .59 .62 .63 .64 .37(4) .57(4)
Net realized and unrealized gain (loss)
on investments .23 .17 (.06) .17 (.45) .31
_______ _______ _______ _______ _______ _______
TOTAL FROM INVESTMENT OPERATIONS .82 .79 .57 .81 (.08) .88
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net (.59) (.62) (.63) (.64) (.37) (.57)
Dividends from net realized gain on
investments (.01) (.06) -- (.04) -- (.12)
Dividends in excess of net realized gain
on investments -- -- -- (.01) -- --
_______ _______ _______ _______ _______ _______
Total Distributions (.60) (.68) (.63) (.69) (.37) (.69)
_______ _______ _______ _______ _______ _______
Net asset value, end of period $12.98 $12.76 $12.65 $12.71 $12.59 $13.04
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(5) 6.59% 6.34% 4.49% 6.65% (.67%)(7) 6.95%(7)
RATIO/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .52% .50% .50% .50% .29%(6,8) .25%(6,8)
Ratio of net investment income
to average net assets 4.58% 4.85% 4.87% 5.08% 4.94%(6) 5.20%(6)
Portfolio Turnover Rate 17.38% 15.00% 43.43% 32.00% 13.00%(7) 32.00%
Net Assets, end of period (000's Omitted) $6,196 $5,372 $4,060 $2,844 $2,388 $2,542
</TABLE>
- ---------
(1) 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.
(2) The Fund changed its fiscal year end to June 30. Prior to this, the Fund's
fiscal year end was November 30.
(3) 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
Investment share outstanding from February 1, 1993 to April 3, 1994 and a
Trust share outstanding from April 4, 1994 to October 16, 1994.
(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 periods ended June 30, 1994 and November 30, 1993 were $.30
and $.36, 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 periods ended June 30, 1994 and November 30, 1993 were 1.23%
and 2.22%, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Limited Term New York Municipal Fund (the "Fund") is a
separate diversified series of The Dreyfus/Laurel Tax-Free Municipal Funds (the
"Trust") which is registered under the Investment Company Act of 1940 ("Act") as
an open-end management investment company and operates as a series company
currently offering seven series including the Fund. The Fund's investment
objective is to maximize current income exempt from Federal, New York State and
New York City income taxes to the extent consistent with the preservation of
capital. 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") is the distributor of
the Fund's shares. The Fund is authorized to issue an unlimited number of shares
of Beneficial Interest in the following classes of shares: Class A, Class B,
Class C and Class R. 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.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
Actual results may differ from estimates.
(A) PORTFOLIO VALUATION: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date.
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(C) 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.
(D) 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 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, if any,
it is the policy of the Fund not to distribute such gain.
(E) 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
and/or affiliates 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, commitment fees, Rule 12b-1 distribution fees and expenses,
service fees, 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) . Each trustees receives
$27,000 per year, $1,000 for each Board meeting attended and $750 for each Audit
Committee meeting attended and is reimbursed for travel and out-of-pocket
expenses. The Chairman of the Board receives an additional annual fee of $25,000
per year. These fees pertain to the following funds: The Dreyfus/Laurel Funds,
Inc., The Dreyfus/Laurel Tax-Free Municipal Funds and The Dreyfus/Laurel Funds
Trust. (The $1,000 attendance fee and reimbursement of meeting expenses are also
borne pro rata by Dreyfus High Yield Strategies Fund). These fees and expenses
are charged and allocated to each series based on net assets. Amounts required
to be paid by the Trust directly to the non-interested Trustees, that would be
applied to offset a portion of the management fee payable to the Manager, are in
fact paid directly by the Manager to the non-interested Trustees.
(B) DISTRIBUTION AND SERVICE PLAN: The Fund has adopted a Distribution Plan
(the "Plan") pursuant to Rule 12b-1 under the Act, the Fund may pay 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, Class B and Class C may pay the Distributor
for distributing their 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 shares
and Class C shares are also subject to a service plan adopted pursuant to Rule
12b-1, under which the Class B shares and Class C shares 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 DREYFUS PREMIER
LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
shares bear no distribution or service fee. During the period ended June 30,
1998, Class A, Class B and Class C shares were charged $5,091, $1,247 and $628,
respectively, pursuant to the Plan and Class B and Class C were charged $623 and
$314, respectively, pursuant to the service plan.
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.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchase and sales of investment securities, excluding
short-term securities, during the period ended June 30, 1998, amounted to
$2,329,935 and $1,512,223, respectively.
At June 30, 1998, accumulated net unrealized appreciation on investments was
$355,766, consisting of $357,111 gross unrealized appreciation and $1,345 gross
unrealized depreciation.
At June 30, 1998, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
NOTE 4--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 borrowings. During the period ended June
30, 1998, the Fund did not borrow under the Facility.
NOTE 5--SUBSEQUENT EVENT:
On September 15, 1998, shareholders of Dreyfus Premier Limited Term California
Municipal Fund and Dreyfus Premier Limited Term New York Municipal Fund will
vote on a proposed merger into Dreyfus Premier Limited Term Municipal Fund. If
approved, the merger will be effective shortly thereafter and the Trust will be
offering five series.
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
- -----------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
THE BOARD OF TRUSTEES AND SHAREHOLDERS
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS:
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier Limited Term New York
Municipal Fund of The Dreyfus/Laurel Tax-Free Municipal Funds as of June 30,
1998, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year period
then ended, and the financial highlights for each of the years or periods in the
five-year period then ended. 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. The financial highlights for the year ended November 30, 1993
were audited by other auditors whose report thereon, dated January 18, 1994,
expressed an unqualified opinion on those financial highlights.
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 also 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 June 30, 1998, by correspondence with the custodian. 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 Limited Term New York Municipal Fund of The Dreyfus/Laurel
Tax-Free Municipal Funds as of June 30, 1998, the results of its operations for
the year then ended, changes in its net assets for each of the years in the
two-year period then ended and its financial highlights for each of the years or
periods in the five-year period then ended, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
New York, New York
August 13, 1998
IMPORTANT TAX IMFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended June 30, 1998:
--all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular Federal and, for individuals who are New York
residents, New York State and New York City personal income taxes), and
--the Fund hereby designates $.0046 per share as a long-term capital gain
distribution (of which 6.52% is subject to the 20% maximum Federal tax rate) of
the $.0143 per share paid on December 4, 1997.
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
gains distributions (if any) paid for the 1998 calendar year on Form 1099-DIV
which will be mailed by January 31, 1999.
DREYFUS 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 Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 348/648AR986
ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
LIMITED TERM
NEW YORK
MUNICIPAL FUND
- -------------------------------------------------------------------------------
JUNE 30, 1998
[reg.tm, logo signature]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
CLASS A SHARES WITH THE LEHMAN BROTHERS 10-YEAR MUNICIPAL
BOND INDEX AND THE LEHMAN BROTHERS 7-YEAR MUNICIPAL BOND
INDEX
EXHIBIT A:
DREYFUS
PREMIER
LIMITED
TERM LEHMAN LEHMAN
NEW YORK BROTHERS BROTHERS
MUNICIPAL 10-YEAR 7-YEAR
FUND MUNICIPAL MUNICIPAL
PERIOD (CLASS A BOND BOND
SHARES) INDEX* INDEX*
6/30/88 9,697 10,000 -
6/30/89 10,382 10,962 -
12/31/89 - - 11,044
6/30/90 10,986 11,741 11,347
6/30/91 11,897 12,827 12,355
6/30/92 13,042 14,279 13,706
6/30/93 14,379 16,075 15,178
6/30/94 14,561 16,234 15,370
6/30/95 15,491 17,659 16,635
6/30/96 16,146 18,787 17,555
6/30/97 17,143 20,353 18,789
6/30/98 18,228 22,079 20,169
*Source: Lehman Brothers
