<PAGE>
------------------------
ANNUAL REPORT
------------------------
------------------------------------------------
PREMIER NEW YORK
MUNICIPAL BOND FUND
------------------------------------------------
-----------------------------
NOVEMBER 30, 1993
-----------------------------
<PAGE>
- --------------------------------------------------------------------------------
PRESIDENT'S LETTER
Dear Shareholder:
When the Premier New York Municipal Bond Fund Class A Shares ended its
fiscal year on November 30, 1993, the net asset value per share was $14.97,
which was $1.00 (7.16%) higher than the closing net asset value per share on
November 30, 1992. Dividends of approximately $.80 per share were paid during
the year, equivalent to a tax-free distribution rate per share of 5.13%, based
on the closing maximum offering price on November 30, 1993. Furthermore, we are
pleased to report that all income dividends paid are exempt from Federal, New
York State and New York City income taxes.*
The municipal market's performance during the past year was laudable; price
performance has been positive; yields fell to near historic lows; and price
volatility remained restrained. We believe the move to higher price valuations
for municipal bonds during the year was attributable primarily to lackluster
economic growth, which, in turn, encouraged the Federal Reserve Board to
maintain its accommodative monetary posture despite some concerns earlier this
year that inflation might be on the rise. Supply, as reflected in the volume of
newly issued securities, was high throughout the year, and that might have been
expected to cause interest rates to move upward, but that did not happen. Demand
was more than sufficient to offset the supply attributable, primarily, to the
expectation of higher taxes, low economic growth projections, and a manageable
level of inflation.
The new tax bill which was enacted this summer should further the
attractiveness of the municipal securities market compared to taxable
alternatives. In view of higher individual Federal tax rates, some New York
residents could experience an increase in their total tax liabilities in the
future (47.05% for some New York City residents). While demand has increased
significantly, the record amount of new bond issuance in 1993 has, to a small
degree, militated against the move to even higher price levels.
The investment objective of this Fund, as enunciated in the Fund's
Prospectus, is to maximize current income free from Federal, New York State and
New York City income taxes as is consistent with the preservation of capital.
The duration (exposure to price volatility) was lengthened at the beginning of
1993 in view of forecasts of declining interest rates. As stated in our
semi-annual letter to shareholders, management of the Fund intended to adopt a
slightly more defensive posture recognizing that the market has enjoyed
significant price appreciation in recent years. Consistent with this, we are
currently reducing the duration and average maturity of the Fund. We still
continue to maintain in the portfolio as many high coupon bonds as practicable,
even though that exposes us to the occasional surprise bond call. These higher
coupon bonds not only lend an air of defensiveness to the portfolio should
interest rates rise, but are frequently pre-refunded by their issuers which
normally results in an increase in price evaluation. In addition, we invested in
certain tax exempt derivative products and their use not only helped maintain
income (to help offset that income reduced by calls), but as a group have had
very good price appreciation which significantly impacted the Fund's
performance.
A current Statement of Investments and recent financial statements of the
Fund have been included for your review. We look forward to serving your
investment needs in the future. Very truly yours,
Richard J. Moynihan
President
December 13, 1993
New York, N.Y.
*Some income may be subject to the Federal alternative minimum tax for certain
investors.
<PAGE>
- --------------------------------------------------------------------------------
PRESIDENT'S LETTER
Dear Shareholder:
When the Premier New York Municipal Bond Fund Class B Shares ended its
fiscal year on November 30, 1993, the net asset value per share was $14.97,
which was $.93 (6.62%) higher than the closing net asset value per share on
January 15, 1993 (inception date). Dividends of approximately $.62 per share
were paid during the period, equivalent to an annualized tax-free distribution
rate per share of 4.76%, based on the closing net asset value on November 30,
1993. Furthermore, we are pleased to report that all dividends paid are exempt
from Federal, New York State and New York City income taxes.*
The municipal market's performance during the past year was laudable; price
performance has been positive; yields fell to near historic lows; and price
volatility remained restrained. We believe the move to higher price valuations
for municipal bonds during the year was attributable primarily to lackluster
economic growth, which, in turn, encouraged the Federal Reserve Board to
maintain its accommodative monetary posture despite some concerns earlier this
year that inflation might be on the rise. Supply, as reflected in the volume of
newly issued securities, was high throughout the year, and that might have been
expected to cause interest rates to move upward, but that did not happen. Demand
was more than sufficient to offset the supply attributable, primarily, to the
expectation of higher taxes, low economic growth projections, and a manageable
level of inflation.
The new tax bill which was enacted this summer should further the
attractiveness of the municipal securities market compared to taxable
alternatives. In view of higher individual Federal tax rates, some New York
residents could experience an increase in their total tax liabilities in the
future (47.05% for some New York City residents). While demand has increased
significantly, the record amount of new bond issuance in 1993 has, to a small
degree, militated against the move to even higher price levels.
The investment objective of this Fund, as enunciated in the Fund's
Prospectus, is to maximize current income free from Federal, New York State and
New York City income taxes as is consistent with the preservation of capital.
The duration (exposure to price volatility) was lengthened at the beginning of
1993 in view of forecasts of declining interest rates. As stated in our
semi-annual letter to shareholders, management of the Fund intended to adopt a
slightly more defensive posture recognizing that the market has enjoyed
significant price appreciation in recent years. Consistent with this, we are
currently reducing the duration and average maturity of the Fund. We still
continue to maintain in the portfolio as many high coupon bonds as practicable,
even though that exposes us to the occasional surprise bond call. These higher
coupon bonds not only lend an air of defensiveness to the portfolio should
interest rates rise, but are frequently pre-refunded by their issuers which
normally results in an increase in price evaluation. In addition, we invested in
certain tax exempt derivative products and their use not only helped maintain
income (to help offset that income reduced by calls), but as a group have had
very good price appreciation which significantly impacted the Fund's
performance.
A current Statement of Investments and recent financial statements of the
Fund have been included for your review. We look forward to serving your
investment needs in the future. Very truly yours,
Richard J. Moynihan
President
December 13, 1993
New York, N.Y.
*Some income may be subject to the Federal alternative minimum tax for certain
investors.
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND NOVEMBER 30, 1993
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER NEW YORK
MUNICIPAL BOND FUND CLASS A SHARES
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
$17,835
Lehman Brothers
Municipal Bond Index*
[chart]
$17,144
Premier New York
Municipal Bond Fund
Class A
Past performance is not predictive of future performance.
The above illustration compares a $10,000 investment made in Class A shares of
Premier New York Municipal Bond Fund on 12/31/86 (Inception Date) to a $10,000
investment made in the Lehman Brothers Municipal Bond Index on that date. All
dividends and capital gain distributions are reinvested.
The Fund invests primarily in New York municipal securities and its performance
takes into account the maximum initial sales charge on Class A shares and all
other applicable fees and expenses. Unlike the Fund, the Lehman Brothers
Municipal Bond Index 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 market. The Index does not
take into account charges, fees or other expenses. Further information relating
to Fund performance, including expense reimbursements, if applicable, is
contained in the Condensed Financial Information section of the Prospectus and
elsewhere in this report.
*Source: Lehman Brothers
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND NOVEMBER 30, 1993
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER NEW YORK
MUNICIPAL BOND FUND CLASS B SHARES
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
$10,996
Lehman Brothers
Municipal Bond Index*
[chart]
$10,820
Premier New York
Municipal Bond Fund
Class B
Past performance is not predictive of future performance.
The above illustration compares a $10,000 investment made in Class B shares of
Premier New York Municipal Bond Fund on 1/15/93 (Inception Date) to a $10,000
investment made in the Lehman Brothers Municipal Bond Index on that date. For
comparative purposes the value of the Index on 12/31/92 is used as the beginning
value on 1/15/93. All dividends and capital gain distributions are reinvested.
The Fund invests primarily in New York municipal securities and its performance
takes into account the maximum contingent deferred sales charge on Class B
shares and all other applicable fees and expenses. Unlike the Fund, the Lehman
Brothers Municipal Bond Index 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 market. The Index does not
take into account charges, fees or other expenses. Further information relating
to Fund performance, including expense reimbursements, if applicable, is
contained in the Condensed Financial Information section of the Prospectus and
elsewhere in this report.
*Source: Lehman Brothers
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS NOVEMBER 30, 1993
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------- PRINCIPAL
MUNICIPAL BONDS--94.4% AMOUNT VALUE
------------ ------------
<S> <C> <C>
- -------------------------------------------------------------------------------------
NEW YORK--84.1%
Albany Industrial Development Agency, LR:
(New York State Assembly Building Project) 7.75%, 1/1/2010......................... $ 1,000,000 $ 1,131,430
(New York State Department of Health Building Project) 7.25%, 10/1/2010............ 1,455,000 1,592,818
Metropolitan Transportation Authority, Service Contract, Commuter Facilities:
5.40%, 7/1/2006.................................................................... 4,315,000 4,236,898
5.75%, 7/1/2007.................................................................... 5,000,000 5,056,700
7.50%, 7/1/2016.................................................................... 1,350,000 1,608,080
Municipal Assistance Corp. for the City of New York 6%, 7/1/2008..................... 1,500,000 1,592,685
New York City:
8%, 6/1/1998....................................................................... 1,000,000 1,122,180
7.50%, 2/1/2006.................................................................... 1,000,000 1,150,050
7.65%, 2/1/2006.................................................................... 2,000,000 2,319,700
6%, 5/15/2009...................................................................... 5,070,000 5,081,914
6.25%, 8/1/2011 (Insured; FSA)..................................................... 500,000 533,785
7.75%, 8/15/2011................................................................... 1,350,000 1,581,309
Refunding 6.50%, 8/1/2007.......................................................... 2,500,000 2,618,775
New York City Health and Hospital Authority, Revenue, Refunding 6%, 2/15/2006........ 2,500,000 2,536,225
New York City Housing Development Corp., Mortgage Revenue
(South Williamsburg Cooperative) 7.90%, 2/1/2023 (Insured; SONYMA)................. 745,000 795,869
New York City Industrial Development Agency:
Civic Facility Revenue:
(Saint Christopher Ottilie Project)
7.50%, 7/1/2021 (LOC; Allied Irish Banks p.l.c.)(a)............................ 1,500,000 1,641,405
(YMCA of Greater New York Project) 8%, 8/1/2016.................................. 1,500,000 1,670,985
Special Facility Revenue (American Airlines Inc. Project) 8%, 7/1/2020............. 2,000,000 2,213,120
New York City Municipal Water Finance Authority, Water and Sewer System Revenue:
7%, 6/15/2019...................................................................... 500,000 562,210
Refunding:
6%, 6/15/2010.................................................................... 3,100,000 3,191,946
6%, 6/15/2017.................................................................... 3,150,000 3,199,045
5.50%, 6/15/2020................................................................. 3,685,000 3,479,008
State of New York, Refunding 6.10%, 11/15/2008....................................... 2,000,000 2,125,400
New York State Dormitory Authority, Revenues:
(Consolidated City University System):
5.75%, 7/1/2009.................................................................. 3,000,000 3,050,580
7.625%, 7/1/2020................................................................. 750,000 898,695
(Cornell University) 7.375%, 7/1/2030.............................................. 1,200,000 1,387,248
Judicial Facilities Lease (Suffolk County Issue):
9.50%, 4/15/2014................................................................. 1,500,000 1,755,435
7.375%, 7/1/2016................................................................. 350,000 430,594
(State University Educational Facilities):
5.375%, 5/15/2007................................................................ 1,905,000 1,868,214
5.25%, 5/15/2010................................................................. 5,870,000 5,647,116
5.875%, 5/15/2011................................................................ 5,000,000 5,141,750
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1993
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------- PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
- -------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
<S> <C> <C>
New York State Dormitory Authority, Revenues (continued):
(State University Educational Facilities) (continued):
7.70%, 5/15/2012................................................................. $ 1,000,000 $ 1,200,090
7%, 5/15/2018.................................................................... 1,000,000 1,158,671
6.75%, 5/15/2021................................................................. 4,400,000 5,144,348
(Wartburg Home) 5.70%, 2/1/2013 (Insured; FHA)..................................... 2,250,000 2,266,493
New York State Energy Research and Development Authority;
Electric Facilities Revenue:
(Consolidated Edison Co. Project):
7.375%, 7/1/2024............................................................... 350,000 390,719
7.25%, 11/1/2024............................................................... 1,250,000 1,396,100
6.75%, 1/15/2027............................................................... 1,250,000 1,346,400
(Long Island Lighting Co. Project):
7.15%, 6/1/2020................................................................ 2,000,000 2,166,440
6.90%, 8/1/2022................................................................ 3,000,000 3,199,170
New York State Environmental Facilities Corp.:
Special Obligation, State Park Infrastructure 5.75%, 3/15/2013..................... 1,545,000 1,538,016
State Water Pollution Control Revolving Fund Revenue:
7.20%, 3/15/2011................................................................. 1,500,000 1,713,855
(New York City Municipal Water Finance Authority Project) 7.25%, 6/15/2010....... 2,650,000 3,062,658
Water Facilities Revenue (Jamaica Water Supply Province) 7.625%, 4/1/2029.......... 500,000 555,250
New York State Housing Finance Agency, Revenue:
Health Facilities, Refunding (New York City) 7.90%, 11/1/1999...................... 1,000,000 1,145,050
(HELP-Bronx Housing) 8.05%, 11/1/2005.............................................. 500,000 540,770
Insured Multi-Family Mortgage Housing 7%, 8/15/2022................................ 1,240,000 1,331,698
Service Contract Obligation:
7.80%, 9/15/2020................................................................. 500,000 606,255
7.30%, 3/15/2021................................................................. 1,000,000 1,195,610
New York State Local Government Assistance Corp.:
7%, 4/1/2011....................................................................... 1,000,000 1,129,080
6%, 4/1/2012....................................................................... 4,035,000 4,137,650
7%, 4/1/2016....................................................................... 1,500,000 1,686,315
6%, 4/1/2018....................................................................... 3,200,000 3,266,368
7.25%, 4/1/2018.................................................................... 1,000,000 1,182,480
Refunding 5.375%, 4/1/2016......................................................... 5,000,000 4,826,300
New York State Medical Care Facilities Finance Agency, Revenue:
Insured Mortgage:
(Hospital and Nursing Home) 7.45%, 8/15/2031 (Insured; FHA)...................... 1,000,000 1,165,180
(Saint Luke's Roosevelt Hospital Center) 7.45%, 2/15/2029 (Insured; FHA)......... 500,000 591,595
Mental Health Services:
5.25%, 8/15/2023................................................................. 2,500,000 2,222,275
Facilities Improvement 7.875%, 8/15/2020......................................... 985,000 1,147,702
New York State Mortgage Agency, Revenue, Homeownership Mortgage:
7.55%, 10/1/2017................................................................... 750,000 814,950
7.80%, 10/1/2020................................................................... 500,000 539,735
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1993
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------- PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
- -------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
<S> <C> <C>
New York State Mortgage Agency, Revenue, Homeownership Mortgage (continued):
8.964%, 10/1/2020 (b,c)............................................................ $ 1,500,000 $ 1,612,500
7.95%, 4/1/2022.................................................................... 1,650,000 1,799,969
8.05%, 4/1/2022.................................................................... 805,000 880,002
6.65%, 10/1/2025................................................................... 2,000,000 2,123,500
New York State Power Authority, Revenue and General Purpose:
5.25%, 1/1/2018.................................................................... 2,750,000 2,662,248
6.75%, 1/1/2018.................................................................... 1,150,000 1,283,515
6%, 1/1/2020....................................................................... 1,000,000 1,024,230
New York State Thruway Authority, Service Contract Revenue (Local Highway and
Bridge):
6.25%, 4/1/2006.................................................................... 4,000,000 4,213,320
7.25%, 1/1/2010.................................................................... 1,000,000 1,127,660
New York State Urban Development Corp., Revenue:
7.50%, 4/1/2020.................................................................... 1,000,000 1,142,380
(Alfred Technology Resources Inc. Project) 7.875%, 1/1/2020........................ 1,000,000 1,150,000
(Correctional Capital Facilities):
7.50%, 1/1/2018.................................................................. 1,000,000 1,191,450
Refunding 5.625%, 1/1/2007....................................................... 10,000,000 10,069,400
(Onondaga County Convention Project) 7.875%, 1/1/2020.............................. 1,475,000 1,712,342
Port Authority of New York and New Jersey, Revenue
(Consolidated Board 67th Series) 6.875%, 1/1/2025.................................. 650,000 725,283
Rensselaer County Industrial Development Agency, IDR
(Albany International Corp.) 7.55%, 6/1/2007 (LOC; Norstar Bank) (a)............... 1,500,000 1,753,365
Schenectady Industrial Development Agency, IDR, Refunding (Broadway Center Project)
5%, 9/1/2009....................................................................... 1,750,000 1,707,020
Triborough Bridge and Tunnel Authority:
(Convention Center Project) 7.25%, 1/1/2010........................................ 1,000,000 1,165,390
Revenue 6%, 1/1/2012............................................................... 2,000,000 2,134,920
Special Obligation 6.062%, 1/1/2012 (Insured; AMBAC) (b)........................... 4,000,000 4,238,880
Ulster County Resource Recovery Agency, Solid Waste System Revenue 6%, 3/1/2014...... 2,250,000 2,259,023
United Nations Development Corp., Revenue, Refunding (Senior Lien) 6%, 7/1/2012...... 1,500,000 1,542,810
City of Yonkers 7.70%, 8/1/2004...................................................... 500,000 585,400
- -------------------------------------------------------------------------------------
U.S. RELATED--10.3%
Guam Airport Authority, Revenue 6.70%, 10/1/2023..................................... 2,000,000 2,150,020
Guam Power Authority, Revenue 6.30%, 10/1/2022....................................... 500,000 518,970
Commonwealth of Puerto Rico:
Public Improvement 7.75%, 7/1/2017................................................. 180,000 213,824
Refunding 5.50%, 7/1/2013.......................................................... 2,500,000 2,441,775
Puerto Rico Electric Power Authority, Power Revenue, Refunding 7%, 7/1/2007.......... 1,000,000 1,114,900
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1993
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------- PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
- -------------------------------------------------------------------------------------
U.S. RELATED (CONTINUED)
<S> <C> <C>
Puerto Rico Industrial Medical Educational and Environmental Pollution Control
Facilities Financing Authority, HR, Refunding (Saint Luke's Hospital Project)
6.25%, 6/1/2010.................................................................... $ 1,100,000 $ 1,155,154
Puerto Rico Highway and Transportation Authority, Highway Revenue
7.662%, 7/1/2008 (b)............................................................... 3,750,000 3,778,125
Puerto Rico Housing Finance Corp., Mortgage Revenue:
7.75%, 6/1/2007 (Insured; FHA)..................................................... 300,000 346,140
Multi-Family 7.50%, 4/1/2022 (LOC; Government Development Bank) (a)................ 1,985,000 2,136,316
Puerto Rico Municipal Finance Agency 5.875%, 7/1/2006................................ 2,075,000 2,191,242
Puerto Rico Public Buildings Authority:
Public Education and Health Facilities
6.60%, 7/1/2004 (Guaranteed; Commonwealth of Puerto Rico)........................ 2,000,000 2,293,580
Revenue, Refunding 5.70%, 7/1/2009 (Guaranteed; Commonwealth of Puerto Rico)...... 2,235,000 2,301,000
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport Project)
8.10%, 10/1/2005................................................................... 470,000 527,659
------------
TOTAL MUNICIPAL BONDS
(cost $180,512,454)................................................................ $193,161,704
------------
------------
<CAPTION>
- -------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL INVESTMENTS--5.6%
<S> <C> <C>
NEW YORK:
New York City, VRDN:
1.90%, (Liquidity Guaranty; FGIC) (d).............................................. $ 1,000,000 $ 1,000,000
Refunding 2.05%, (SBPA; Citibank) (d).............................................. 5,055,000 5,055,000
Series A-8 2.15%, (LOC; Sanwa Bank) (a,d).......................................... 400,000 400,000
Series A-9 2.15%, (LOC; Industrial Bank of Japan) (a,d)............................ 1,000,000 1,000,000
New York State Environmental Facilities Corp., RRR, VRDN (Equity Huntington Project)
2.05% (LOC; Union Bank of Switzerland) (a,d)....................................... 4,000,000 4,000,000
------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $11,455,000)................................................................. $ 11,455,000
------------
------------
TOTAL INVESTMENTS--100.0%
(cost $191,967,454)................................................................ $204,616,704
------------
------------
</TABLE>
- --------------------------------------------------------------------------------
SUMMARY OF ABBREVIATIONS
<TABLE>
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
FGIC Financial Guaranty Insurance Corporation LR Lease Revenue
FHA Federal Housing Administration RRR Resources Recovery Revenue
FSA Financial Security Assurance SBPA Standby Bond Purchase Agreeement
HR Hospital Revenue SONYMA State of New York Municipal Agency
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SUMMARY OF COMBINED RATINGS (UNAUDITED)
<TABLE>
<CAPTION>
PERCENTAGE OF
FITCH (E) OR MOODY'S OR STANDARD & POOR'S VALUE -------------
- ---------- ------------------ ------------------
<S> <C> <C> <C> <C> <C>
AAA Aaa AAA 4.4%
AA Aa AA 17.0
A A A 37.1
BBB Baa BBB 33.4
BB Ba BB .3
F1 MIG1 SP1 3.6
F1 P1 A1 1.9
Not Rated Not Rated Not Rated 2.3
-----
100.0%
-----
-----
</TABLE>
- --------------------------------------------------------------------------------
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Inverse floater security - the interest rate is subject to change
periodically.
(c) Security 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 November 30,
1993, this security amounted to $1,612,500 or .8% of net assets.
(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) Fitch currently provides creditworthiness information for a limited amount
of investments.
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1993
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $191,967,454)--see statement..................................................... $204,616,704
Cash..................................................................................... 623,328
Interest receivable...................................................................... 3,563,553
Receivable for shares of Beneficial Interest subscribed.................................. 609,896
Prepaid expenses......................................................................... 44,043
------------
209,457,524
LIABILITIES:
Due to The Dreyfus Corporation........................................................... $ 131,930
Payable for shares of Beneficial Interest redeemed....................................... 107,056
Accrued expenses......................................................................... 71,636 310,622
--------- ------------
NET ASSETS................................................................................. $209,146,902
------------
------------
REPRESENTED BY:
Paid-in capital.......................................................................... $195,040,445
Accumulated undistributed net realized gain on investments............................... 1,457,207
Accumulated net unrealized appreciation on investments--Note 3(b)........................ 12,649,250
------------
NET ASSETS at value........................................................................ $209,146,902
------------
------------
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)................................ 10,961,332
------------
------------
Class B Shares
(unlimited number of $.001 par value shares authorized)............................... 3,012,740
------------
------------
NET ASSET VALUE per share:
Class A Shares
($164,046,385 / 10,961,332 shares)..................................................... $14.97
------
------
Class B Shares
($45,100,517 / 3,012,740 shares)....................................................... $14.97
------
------
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 1993
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME.......................................................................... $ 9,710,157
EXPENSES:
Management fee--Note 2(a).............................................................. $ 870,354
Shareholder servicing costs--Note 2(b,c)............................................... 473,950
Distribution fees (Class B shares)--Note 2(b).......................................... 85,903
Prospectus and shareholders' reports--Note 2(b)........................................ 47,336
Professional fees...................................................................... 45,533
Registration fees...................................................................... 35,992
Custodian fees......................................................................... 17,894
Trustees' fees and expenses--Note 2(d)................................................. 11,441
Miscellaneous.......................................................................... 17,754
----------
1,606,157
Less--reduction in management fee due to
undertakings--Note 2(a).............................................................. 282,869
----------
TOTAL EXPENSES..................................................................... 1,323,288
-----------
INVESTMENT INCOME--NET............................................................. 8,386,869
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments--Note 3(a).............................................. $1,549,386
Net realized (loss) on financial futures--Note 3(a)...................................... (99,650)
----------
NET REALIZED GAIN...................................................................... 1,449,736
Net unrealized appreciation on investments (including $76,563
net unrealized appreciation on financial futures)...................................... 7,432,393
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS.................................... 8,882,129
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................................... $17,268,998
-----------
-----------
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED NOVEMBER 30,
------------------------------
1992 1993
------------ ------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................................... $ 5,352,010 $ 8,386,869
Net realized gain on investments..................................................... 1,153,978 1,449,736
Net unrealized appreciation on investments for the year.............................. 2,252,691 7,432,393
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................. 8,758,679 17,268,998
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares..................................................................... (5,352,010) (7,628,356)
Class B shares..................................................................... -- (758,513)
Net realized gain on investments:
Class A shares..................................................................... (1,150,583) --
Class B shares..................................................................... -- --
------------ ------------
TOTAL DIVIDENDS.................................................................. (6,502,593) (8,386,869)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares..................................................................... 42,951,648 57,603,050
Class B shares..................................................................... -- 45,772,562
Dividends reinvested:
Class A shares..................................................................... 4,426,858 5,516,098
Class B shares..................................................................... -- 630,384
Cost of shares redeemed:
Class A shares..................................................................... (11,720,411) (16,025,652)
Class B shares..................................................................... -- (1,478,443)
------------ ------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS..................... 35,658,095 92,017,999
------------ ------------
TOTAL INCREASE IN NET ASSETS................................................... 37,914,181 100,900,128
NET ASSETS:
Beginning of year.................................................................... 70,332,593 108,246,774
------------ ------------
End of year.......................................................................... $108,246,774 $209,146,902
------------ ------------
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
--------------------------------------------
CLASS A CLASS B
-------------------------- ------------
YEAR ENDED NOVEMBER 30, YEAR ENDED
-------------------------- NOVEMBER 30,
1992 1993 1993*
---------- ---------- ------------
<S> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.............................................................. 3,084,680 3,927,594 3,069,381
Shares issued for dividends reinvested................................... 318,343 373,250 41,916
Shares redeemed.......................................................... (842,825) (1,086,014) (98,557)
---------- ---------- ------------
NET INCREASE IN SHARES OUTSTANDING................................... 2,560,198 3,214,830 3,012,740
---------- ---------- ------------
---------- ---------- ------------
<FN>
- ---------------
* From January 15, 1993 (commencement of initial offering) to November 30, 1993.
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information has
been derived from information provided in the Fund's financial statements.
<TABLE>
<CAPTION>
CLASS B
CLASS A SHARES SHARES
------------------------------------------------------ ------------
<S> <C> <C> <C> <C> <C> <C>
YEAR ENDED NOVEMBER 30, YEAR ENDED
- --------------------------------------------------- ------------------------------------------------------ NOVEMBER 30,
PER SHARE DATA: 1989 1990 1991 1992 1993 1993(1)
------ ------ ------ ------ ------ ------------
Net asset value, beginning of year............... $12.54 $13.08 $12.88 $13.56 $13.97 $14.04
------ ------ ------ ------ ------ ------------
INVESTMENT OPERATIONS:
Investment income--net........................... .95 .94 .89 .86 .80 .62
Net realized and unrealized gain (loss) on
investments.................................... .54 (.20) .68 .56 1.00 .93
------ ------ ------ ------ ------ ------------
TOTAL FROM INVESTMENT OPERATIONS............... 1.49 .74 1.57 1.42 1.80 1.55
------ ------ ------ ------ ------ ------------
DISTRIBUTIONS:
Dividends from investment income--net............ (.95) (.94) (.89) (.86) (.80) (.62)
Dividends from net realized gain on
investments.................................... -- -- -- (.15) -- --
------ ------ ------ ------ ------ ------------
TOTAL DISTRIBUTIONS............................ (.95) (.94) (.89) (1.01) (.80) (.62)
------ ------ ------ ------ ------ ------------
Net asset value, end of year..................... $13.08 $12.88 $13.56 $13.97 $14.97 $14.97
------ ------ ------ ------ ------ ------------
------ ------ ------ ------ ------ ------------
- ---------------------------------------------------
TOTAL INVESTMENT RETURN(2) 12.23% 5.93% 12.63% 10.79% 13.16% 12.78%(3)
- ---------------------------------------------------
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.......... -- .06% .52% .72% .78% 1.34%(3)
Ratio of net investment income to average net
assets......................................... 7.11% 7.19% 6.69% 6.16% 5.41% 4.41%(3)
Decrease reflected in above expense ratios due to
undertakings by the Manager (limited to the
expense limitation provision of the management
agreement)..................................... 1.50% 1.34% .60% .34% .18% .16%(3)
Portfolio Turnover Rate.......................... 21.67% 7.02% 12.45% 12.55% 19.55% 19.55%
Net Assets, end of year (000's Omitted).......... $11,800 $39,748 $70,333 $108,247 $164,046 $45,101
<FN>
- ---------------
(1) From January 15, 1993 (commencement of initial offering) to November 30, 1993.
(2) Exclusive of sales charge.
(3) Annualized.
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act") as
a non-diversified open-end management investment company. Dreyfus Service
Corporation ("Distributor") acts as the distributor of the Fund's shares. The
Distributor is a wholly-owned subsidiary of The Dreyfus Corporation ("Manager").
On July 24, 1992, shareholders approved an amendment to the Fund's
Agreement and Declaration of Trust to provide for the issuance of additional
classes of shares. On September 23, 1992, the Fund's Board of Trustees
classified the Fund's existing shares as Class A shares and authorized the
issuance of an unlimited number of $.001 par value Class B shares. The Fund
began offering both Class A and Class B shares on January 15, 1993. Class A
shares are subject to a sales charge imposed at the time of purchase and Class B
shares are subject to a contingent deferred sales charge imposed at the time of
redemption on redemptions made within five years of purchase. Other differences
between the two Classes include the services offered to and the expenses borne
by each Class and certain voting rights.
(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 in the judgment of the
Service are readily available and are representative of the bid side of the
market 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, when appropriate, 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.
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.
(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. 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.
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 provisions available to certain investment
companies, as defined in applicable sections of the Internal Revenue Code, and
to make distributions of income and net realized capital gain sufficient to
relieve it from all, or substantially all, Federal income taxes.
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .55 of 1% of the average daily
value of the Fund's net assets and is payable monthly. The Agreement provides
for an expense reimbursement from the Manager should the Fund's aggregate
expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. However, the Manager had
undertaken from December 1, 1992 through January 1, 1993 to reduce the
management fee paid by, or reimburse such excess expenses of the Fund, to the
extent that the Fund's aggregate expenses (excluding certain expenses as
described above) exceeded an annual rate of .70 of 1% of the Fund's average
daily net assets and thereafter had undertaken through January 20, 1994, to
reduce the management fee paid by the Fund to the extent that the Fund's
aggregate expenses (excluding certain expenses as described above) exceeded
specified annual percentages of the Fund's average daily net assets. The Manager
has currently undertaken from January 21, 1994 through July 1, 1994, to waive
receipt of the management fee payable to it by the Fund in excess of an annual
rate of .50 of 1% of the Fund's average daily net assets. The reduction in
management fee, pursuant to the undertakings, amounted to $282,869 for the year
ended November 30, 1993.
The undertaking may be modified by the Manager from time to time, provided
that the resulting expense reimbursement would not be less than the amount
required pursuant to the Agreement.
The Distributor retained $138,876 during the year ended November 30, 1993
from commissions earned on sales of the Fund's Class A shares.
The Distributor retained $32,366 during the period ended November 30, 1993
from contingent deferred sales charges imposed upon redemptions of the Fund's
Class B shares.
(B) Under the Distribution Plan ("Class B Distribution Plan") adopted
pursuant to Rule 12b-1 under the Act, effective January 15, 1993, the Fund pays
the Distributor at an annual rate of .50 of 1% of the value of the Fund's Class
B shares average daily net assets, for the costs and expenses in connection with
advertising, marketing and distributing the Fund's Class B shares. The
Distributor may make payments to one or more Service Agents (a securities
dealer, financial institution, or other industry professional) based on the
value of the Fund's Class B shares owned by clients of the Service Agent.
Prior to January 15, 1993, the Fund's Service Plan ("prior Service Plan")
provided that the Fund pay the Distributor, at an annual rate of .25 of 1% of
the value of the Fund's average daily net assets, for costs and expenses in
connection with advertising, marketing and distributing the Fund's shares and
for servicing shareholder accounts. The Distributor made payments to one or more
Service Agents based on the value of the Fund's shares owned by clients of the
Service Agent. The prior Service Plan also provided for the Fund to bear the
costs of preparing, printing and distributing certain of the Fund's prospectuses
and statements of additional information and costs associated with implementing
and operating the Plan, not to exceed the greater of $100,000 or .005 of 1% of
the Fund's average daily net assets for any full fiscal year.
During the period ended November 30, 1993, $36,900 was charged to the Fund
pursuant to the prior Service Plan and $85,903 was charged to the Fund pursuant
to the Class B Distribution Plan.
<PAGE>
- --------------------------------------------------------------------------------
PREMIER NEW YORK MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(C) Under the Shareholder Services Plan, effective January 15, 1993, the
Fund pays the Distributor, at an annual rate of .25 of 1% of the value of the
average daily net assets of Class A and Class B shares for servicing shareholder
accounts. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the Fund
and providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. For the period ended November 30, 1993,
$315,764 and $42,951 were charged to the Class A and Class B shares,
respectively, pursuant to the Shareholder Services Plan.
(D) Certain officers and trustees of the Fund are "affiliated persons," as
defined in the Act, of the Manager and/or the Distributor. Each trustee who is
not an "affiliated person" receives from the Fund an annual fee of $1,000 and an
attendance fee of $250 per meeting.
(E) On December 5, 1993, the Manager entered into an Agreement and Plan of
Merger providing for the merger of the Manager with a subsidiary of Mellon Bank
Corporation ("Mellon").
Upon closing of the merger, it is planned that the Manager will retain its
New York headquarters and will be a separate subsidiary within the Mellon
organization. It is expected that the Manager's management team and mutual fund
managers will remain in place, and the Dreyfus mutual funds will be operated in
the same manner as they are currently.
Following the merger, the Manager will be either a direct or indirect
subsidiary of Mellon, whose principal banking subsidiary is Mellon Bank, N.A.
Closing of this merger is subject to a number of contingencies, including the
receipt of certain regulatory approvals and the approvals of the stockholders of
the Manager and of Mellon. The merger is expected to occur in mid-1994, but
could occur significantly later.
Because the merger will constitute an "assignment" of the Fund's Management
Agreement with the Manager under the Investment Company Act of 1940, and thus a
termination of such Agreement, the Manager will seek prior approval from the
Fund's Board and shareholders.
NOTE 3--SECURITIES TRANSACTIONS:
(A) Purchases and sales of securities amounted to $187,783,320 and
$96,375,901, respectively, for the year ended November 30, 1993, and consisted
entirely of municipal bonds and short-term municipal investments.
The Fund is engaged in trading financial futures contracts. The Fund 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 with a custodian, 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 November 30,
1993, there were no financial futures contracts outstanding.
(B) At November 30, 1993, accumulated net unrealized appreciation on
investments was $12,649,250, consisting of $13,256,285 gross unrealized
appreciation and $607,035 gross unrealized depreciation.
At November 30, 1993, 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 NEW YORK MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER NEW YORK MUNICIPAL BOND FUND
We have audited the accompanying statement of assets and liabilities of
Premier New York Municipal Bond Fund, including the statement of investments, as
of November 30, 1993, 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
November 30, 1993 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
Premier New York Municipal Bond Fund at November 30, 1993, 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
New York, New York
January 5, 1994
- --------------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended November
30, 1993 as "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).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends and
capital gain distributions paid for the 1993 calendar year on Form 1099-DIV
which will be mailed by January 31, 1994.
<PAGE>
PREMIER NEW YORK
MUNICIPAL BOND FUND
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
PRINTED IN U.S.A. 021AR9311
