LETTER TO SHAREHOLDERS
Dear Shareholder:
Since our last report, the bond markets have been in a state of flux.
Bond prices rallied to a cyclical high last October and have moved
irregularly lower ever since. The Fund's net asset value for both Class A and
Class B shares declined by approximately $.67 per share (adjusted for capital
gain distributions) to $14.20 during the six months ended May 31, 1994.
Partially offsetting this were income dividends paid per share of
approximately $.37 for Class A and $.33 for Class B. This translates to an ann
ualized tax exempt distribution rate per share of 4.97% and 4.60%,
respectively.* All income dividends paid are exempt from Federal, New York
State and New York City income taxes.**
YEAR IN REVIEW
Soon after his inauguration last year, President Clinton quickly moved to
outline his domestic economic agenda, which called for higher taxes and a
substantial reduction in the Federal budget deficit. In return, it was
expected that the Federal Reserve Board would continue to maintain a
stimulative monetary policy. In fact, Congress approved a budget package in
early August that tilted fiscal policy toward deficit reduction. In response,
interest rates accelerated their downward move during the summer, before
finally reaching their low during the fourth quarter of 1993.
It appears that 1994 will be memorialized as the end of five years of
accommodative Federal Reserve policy. Since February, the Federal Funds rate
has been raised four times. It is possible that further rate hikes will be
forthcoming should the economy continue to signal an unacceptable rate of
growth. With such a heightened degree of nervousness influencing both bonds
and stocks, the markets could remain quite volatile.
Higher bond yields have affected the supply of new municipal bonds. While
1993 was a record year for bond issuance, so far in 1994 new issuance has
fallen dramatically. At the same time, the appetite of individual investors
for tax exempt investments has been tempered. However, if inflation fears
subside and interest rates stabilize, attractive investment opportunities
could exist in municipal securities. New issuance has been reduced, the
highest marginal Federal tax rate has been increased to nearly 40%, and
municipal bonds are yielding substantially more than they were only a few
months ago. At this juncture, it is still uncertain as to when and if such a
scenario will unfold.
To date, the impasse over the New York State budget has delayed the
new-issue supply of state-supported bonds. Now that this two-month stalemate
has been resolved, the State's fiscal health appears to be in order for the
foreseeable future and should not impinge upon the State's or New York City's
long-term debt ratings.
PORTFOLIO POSITIONING
Last year, when interest rates were reaching their cyclical lows, we
altered our security selection strategy. Specifically, we elected not to
chase the market and began to conduct our business very cautiously. We
increased our cash reserves in order to lessen the impact of rising rates on
the Fund. Now we are somewhat reluctant to keep too much cash on hand.
Because of the restricted investment possibilities in a specific state
portfolio such as this one, we are holding less in cash reserves than we might
maintain in a general market fund. As mentioned previously, higher interest
rates have severely curtailed the volume of new municipal securities, and we
are concerned about the potential lack of supply in tax exempts should the
financial markets stabilize and investors increase their level of purchasing.
Higher tax rates and the large number of bonds being retired lead us to
believe that the potential demand for tax exempt securities is quite
substantial, especially in States with the highest tax structures.
LOOKING AHEAD
As we have witnessed in recent weeks, negative influences on the markets
can be quite powerful. The potential still exists for further market
volatility and higher yields before bond prices begin to rise again. At
difficult times such as these, it is easy to lose sight of the forest for the
trees, as emotion often substitutes for logical investment reasoning. The
Fund is managed with the objective of maximizing current income exempt from
Federal, New York State and New York City income taxes to the extent
consistent with the preservation of capital. We appreciate your investment in
the Fund, and we want to assure you that we are at all times working in the
Fund's best interest.
Very truly yours,
(Signature Logo)
Richard J. Moynihan
President
June 13, 1994
New York, N.Y.
* Annualized distribution rate per share is based upon dividends per
share paid from net investment income during the period, divided by the
maximum offering price per share at the end of the period in the case of
Class A, or the net asset value per share at the end of the period in the
case of Class B, adjusted for capital gain distributions.
** Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders. Capital gains, if any, are generally
subject to Federal, State and local taxes.
<TABLE>
<CAPTION>
PREMIER NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MAY 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS--94.1% AMOUNT VALUE
------------- -------------
<S> <C> <C>
NEW YORK--84.8%
Albany Industrial Development Agency, Lease Revenue:
(New York State Assembly Building Project) 7.75%, 1/1/2010.............. $ 1,000,000 $ 1,082,780
(New York State Department of Health Building Project) 7.25%, 10/1/2010. 1,455,000 1,507,860
Metropolitan Transportation Authority, Service Contract, Commuter Facilities:
5.40%, 7/1/2006......................................................... 4,315,000 4,138,085
5.75%, 7/1/2007......................................................... 5,000,000 4,918,200
7.50%, 7/1/2016......................................................... 1,350,000 1,551,204
Municipal Assistance Corp. for the City of New York 6%, 7/1/2008............ 1,500,000 1,524,960
New York City:
8%, 6/1/1998............................................................ 1,000,000 1,097,680
7.50%, 2/1/2006......................................................... 1,000,000 1,104,650
7.65%, 2/1/2006......................................................... 2,000,000 2,227,520
5.70%, Series E, 8/1/2008............................................... 2,000,000 1,893,640
5.70%, Series G, 8/1/2008............................................... 2,300,000 2,177,686
5.75%, 8/1/2010......................................................... 2,500,000 2,348,675
7.75%, 8/15/2011........................................................ 1,350,000 1,495,989
5.50%, 10/1/2016........................................................ 4,850,000 4,273,287
Refunding 6.50%, 8/1/2007............................................... 2,500,000 2,545,575
New York City Health and Hospital Authority, Revenue, Refunding 6%, 2/15/2006 2,500,000 2,482,625
New York City Housing Development Corp., Mortgage Revenue
(South Williamsburg Cooperative) 7.90%, 2/1/2023 (Insured; SONYMA)...... 740,000 763,850
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 1,594,290
(YMCA of Greater New York Project) 8%, 8/1/2016....................... 1,500,000 1,613,400
Special Facility Revenue (American Airlines Inc. Project) 8%, 7/1/2020.. 2,000,000 2,096,960
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue, Refunding:
6%, 6/15/2010......................................................... 3,100,000 3,125,358
6%, 6/15/2017......................................................... 3,150,000 3,065,643
State of New York, Refunding 6.10%, 11/15/2008.............................. 2,000,000 2,044,900
New York State Dormitory Authority, Revenues:
(Consolidated City University System):
5.75%, 7/1/2009....................................................... 3,000,000 2,893,440
7.625%, 7/1/2020...................................................... 750,000 866,655
(Cornell University) 7.375%, 7/1/2030................................... 1,200,000 1,314,528
Judicial Facilities Lease (Suffolk County Issue):
9.50%, 4/15/2014...................................................... 1,500,000 1,755,495
7.375%, 7/1/2016...................................................... 350,000 421,095
(State University Educational Facilities):
5.375%, 5/15/2007..................................................... 1,905,000 1,803,787
5.25%, 5/15/2010...................................................... 5,870,000 5,330,371
5.875%, 5/15/2011..................................................... 5,000,000 4,838,100
7.70%, 5/15/2012...................................................... 1,000,000 1,151,480
7%, 5/15/2018......................................................... 450,000 504,563
7%, 5/15/2018......................................................... 550,000 616,654
6.75%, 5/15/2021...................................................... 4,400,000 4,914,052
PREMIER NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------- -------------
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenues (continued):
(Upstate Community Colleges) 5.625%, 7/1/14............................. $ 2,500,000 $ 2,331,225
(Wartburg Home) 5.70%, 2/1/2013 (Insured; FHA).......................... 2,250,000 2,117,903
New York State Energy Research and Development Authority:
Electric Facilities Revenue:
(Consolidated Edison Co. Project):
7.375%, 7/1/2024.................................................. 350,000 369,793
7.25%, 11/1/2024.................................................. 1,250,000 1,329,350
6.75%, 1/15/2027.................................................. 1,250,000 1,277,687
(Long Island Lighting Co. Project):
7.15%, 6/1/2020................................................... 2,000,000 1,995,280
6.90%, 8/1/2022................................................... 3,000,000 2,919,690
New York State Environmental Facilities Corp.:
Special Obligation, State Park Infrastructure 5.75%, 3/15/2013.......... 1,545,000 1,442,937
State Water Pollution Control Revolving Fund Revenue:
7.20%, 3/15/2011...................................................... 1,500,000 1,618,755
(New York City Municipal Water Finance Authority Project) 7.25%, 6/15/2010 2,650,000 2,880,735
Water Facilities Revenue (Jamaica Water Supply Provence) 7.625%, 4/1/2029 500,000 541,320
New York State Housing Finance Agency, Revenue:
Health Facilities, Refunding (New York City) 7.90%, 11/1/1999........... 1,000,000 1,123,460
(HELP-Bronx Housing) 8.05%, 11/1/2005................................... 500,000 551,215
Insured Multi-Family Mortgage Housing 7%, 8/15/2022..................... 1,240,000 1,273,455
Service Contract Obligation:
7.80%, 9/15/2020...................................................... 500,000 584,390
7.30%, 3/15/2021...................................................... 1,000,000 1,142,320
New York State Local Government Assistance Corp.:
7%, 4/1/2011............................................................ 1,000,000 1,055,110
6%, 4/1/2012............................................................ 4,035,000 3,965,275
7%, 4/1/2016............................................................ 1,500,000 1,690,320
6%, 4/1/2018 ........................................................... 3,200,000 3,112,768
7.25%, 4/1/2018......................................................... 1,000,000 1,141,180
Refunding:
6%, 4/1/2014.......................................................... 10,000,000 9,918,900
5.375%, 4/1/2016...................................................... 5,000,000 4,482,150
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 1,080,860
(Saint Luke's Roosevelt Hospital Center) 7.45%, 2/15/2029 (Insured; FHA) 500,000 566,260
Mental Health Services Facilities Improvement:
7.875%, 8/15/2000..................................................... 675,000 784,154
7.875%, 8/15/2020..................................................... 310,000 342,032
5.25%, 8/15/2023...................................................... 2,500,000 2,085,000
Refunding 5.375%, 2/15/2014........................................... 5,000,000 4,437,350
New York State Mortgage Agency, Revenue, Homeownership Mortgage:
7.55%, 10/1/2017........................................................ 750,000 796,500
7.80%, 10/1/2020........................................................ 500,000 528,720
8.904%, 10/1/2020 (b,c)................................................. 1,500,000 1,526,250
7.95%, 4/1/2022......................................................... 1,650,000 1,761,078
PREMIER NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED)
MAY 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------- -------------
NEW YORK (CONTINUED)
New York State Mortgage Agency, Revenue, Homeownership Mortgage (continued):
8.05%, 4/1/2022......................................................... $ 765,000 $ 822,222
6.65%, 10/1/2025........................................................ 2,000,000 2,007,340
New York State Power Authority, Revenue and General Purpose:
5.25%, 1/1/2018......................................................... 2,750,000 2,422,118
6.75%, 1/1/2018......................................................... 1,150,000 1,197,345
New York State Thruway Authority, Service Contract Revenue
(Local Highway and Bridge):
6.25%, 4/1/2006....................................................... 4,000,000 4,114,440
7.25%, 1/1/2010....................................................... 1,000,000 1,075,100
New York State Urban Development Corp., Revenue:
7.50%, 4/1/2020......................................................... 1,000,000 1,090,980
(Alfred Technology Resources Inc. Project) 7.875%, 1/1/2020............. 1,000,000 1,101,140
(Correctional Capital Facilities):
7.50%, 1/1/2018....................................................... 1,000,000 1,151,330
Refunding:
5.625%, 1/1/2007.................................................. 10,000,000 9,487,000
6.50%, 1/1/2009................................................... 2,000,000 2,033,180
(Onondaga County Convention Project) 7.875%, 1/1/2020................... 1,475,000 1,636,734
Port Authority of New York and New Jersey, Revenue
(Consolidated Board 67th Series) 6.875%, 1/1/2025....................... 650,000 690,151
Rensselaer County Industrial Development Agency, Industrial Development
Revenue
(Albany International Corp.) 7.55%, 6/1/2007 (LOC; Norstar Bank) (a).... 1,500,000 1,652,940
Schenectady Industrial Development Agency, IDR, Refunding
(Broadway Center Project) 5%, 9/1/2009.................................. 1,750,000 1,617,735
Triborough Bridge and Tunnel Authority:
(Convention Center Project) 7.25%, 1/1/2010............................. 1,000,000 1,114,820
Revenue 6%, 1/1/2012.................................................... 2,000,000 2,004,180
Special Obligation 9.545%, 1/1/2012 (Insured; AMBAC) (b,c).............. 2,000,000 2,045,000
Ulster County Resource Recovery Agency, Solid Waste System Revenue 6%, 3/1/2014 2,250,000 2,131,043
United Nations Development Corp., Revenue, Refunding (Senior Lien) 6%, 7/1/2012 1,500,000 1,465,965
City of Yonkers 7.70%, 8/1/2004............................................. 500,000 553,540
U.S. RELATED --9.3%
Guam Airport Authority, Revenue 6.70%, 10/1/2023............................ 2,000,000 2,013,780
Guam Power Authority, Revenue 6.30%, 10/1/2022.............................. 500,000 495,805
Commonwealth of Puerto Rico:
Public Improvement 7.75%, 7/1/2017...................................... 180,000 205,697
Refunding 5.50%, 7/1/2013............................................... 2,500,000 2,301,275
Puerto Rico Electric Power Authority, Power Revenue, Refunding 7%, 7/1/2007. 1,000,000 1,075,940
Puerto Rico Highway and Transportation Authority, Highway Revenue
6.90%, 7/1/2008 (b)..................................................... 3,750,000 3,290,625
Puerto Rico Housing Finance Corp., Mortgage Revenue:
7.75%, 6/1/2007 (Insured; FHA).......................................... 300,000 348,297
Multi-Family 7.50%, 4/1/2022 (LOC; Government Development Bank) (a)..... 1,985,000 2,073,551
PREMIER NEW YORK MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------- -------------
U.S. RELATED (CONTINUED)
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 $ 1,103,267
Puerto Rico Municipal Finance Agency 5.875%, 7/1/2006....................... 2,075,000 2,086,039
Puerto Rico Public Buildings Authority:
Public Education and Health Facilities
6.60%, 7/1/2004 (Guaranteed; Commonwealth of Puerto Rico)............. 2,000,000 2,199,780
Revenue, Refunding 5.70%, 7/1/2009 (Guaranteed; Commonwealth of Puerto Rico) 2,235,000 2,172,420
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport
Project)
8.10%, 10/1/2005........................................................ 470,000 522,123
-------------
TOTAL MUNICIPAL BONDS
(cost $199,182,315)..................................................... $201,161,361
============
SHORT-TERM MUNICIPAL INVESTMENTS--5.9%
NEW YORK:
New York City, VRDN:
3.15% (LOC; Chemical Bank) (a,d)........................................ $ 1,500,000 $ 1,500,000
3.15% (LOC; Chemical Bank) (a,d)........................................ 2,500,000 2,500,000
3.25% (LOC; Industrial Bank of Japan) (a,d)............................. 1,500,000 1,500,000
3.25% (LOC; The Sumitomo Bank) (a,d).................................... 1,300,000 1,300,000
3.25% (SBPA; Citibank) (d).............................................. 1,500,000 1,500,000
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue, VRDN 2.80% (Insured; FGIC) (d)................................. 1,000,000 1,000,000
New York State Job Development Authority, VRDN
3.20% (SBPA; Fuji Bank) (d)............................................. 3,200,000 3,200,000
-------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $12,500,000)...................................................... $ 12,500,000
============
TOTAL INVESTMENTS--100.0%
(cost $211,682,315)..................................................... $213,661,361
============
</TABLE>
<TABLE>
<CAPTION>
PREMIER NEW YORK MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
FGIC Financial Guaranty Insurance Corporation SBPA Standby Bond Purchase Agreement
FHA Federal Housing Administration SONYMA State of New York Mortgage Agency
HR Hospital Revenue VRDN Variable Rate Demand Notes
IDR Industrial Development Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
AAA Aaa AAA 6.2%
AA Aa AA 14.7
A A A 38.9
BBB Baa BBB 31.9
BB Ba BB .3
F1 MIG1 SP1 5.9
Not Rated Not Rated Not Rated 2.1
------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Residual interest 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 May 31,
1994, these securities amounted to $3,571,250 or 1.6% 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
number of investments.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER NEW YORK MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $211,682,315)_see statement..................................... $213,661,361
Cash.................................................................... 1,286,465
Interest receivable..................................................... 3,787,587
Receivable for shares of Beneficial Interest subscribed................. 593,605
Prepaid expenses........................................................ 26,978
-------------
219,355,996
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $161,399
Payable for shares of Beneficial Interest redeemed...................... 336,275
Accrued expenses........................................................ 47,970 545,644
-------- -------------
NET ASSETS ................................................................ $218,810,352
=============
REPRESENTED BY:
Paid-in capital......................................................... $216,610,252
Accumulated undistributed net realized gain on investments.............. 221,054
Accumulated net unrealized appreciation on investments_Note 3........... 1,979,046
-------------
NET ASSETS at value......................................................... $218,810,352
============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 11,447,984
============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 3,965,468
============
NET ASSET VALUE per share:
Class A Shares
($162,504,761 / 11,447,984 shares).................................... $14.20
=======
Class B Shares
($56,305,591 / 3,965,468 shares)...................................... $14.20
=======
See independent accountants' review report and notes to financial statements.
PREMIER NEW YORK MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED MAY 31, 1994 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 6,470,741
EXPENSES:
Management fee--Note 2(a)............................................. $ 599,469
Shareholder servicing costs_Note 2(c)................................. 336,907
Distribution fees (Class B shares)_Note 2(b).......................... 130,256
Prospectus and shareholders' reports.................................. 31,613
Professional fees..................................................... 29,852
Registration fees..................................................... 11,874
Custodian fees........................................................ 11,500
Trustees' fees and expenses_Note 2(d)................................. 6,288
Miscellaneous......................................................... 14,891
-------------
1,172,650
Less_reduction in management fee due to
undertakings_Note 2(a)............................................ 76,479
-------------
TOTAL EXPENSES.................................................. 1,096,171
-------------
INVESTMENT INCOME--NET.......................................... 5,374,570
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments--Note 3................................ $ 223,415
Net unrealized (depreciation) on investments............................ (10,670,204)
-------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (10,446,789)
-------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (5,072,219)
============
See independent accountants' review report and notes to financial statements.
PREMIER NEW YORK MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
NOVEMBER 30, MAY 31, 1994
1993 (UNAUDITED)
-------------- --------------
OPERATIONS:
Investment income--net................................................. $ 8,386,869 $ 5,374,570
Net realized gain on investments....................................... 1,449,736 223,415
Net unrealized appreciation (depreciation) on investments for the period 7,432,393 (10,670,204)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. 17,268,998 (5,072,219)
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares....................................................... (7,628,356) (4,209,415)
Class B shares....................................................... (758,513) (1,165,155)
Net realized gain on investments:
Class A shares....................................................... ___ (1,134,769)
Class B shares....................................................... ___ (324,799)
-------------- --------------
TOTAL DIVIDENDS.................................................. (8,386,869) (6,834,138)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares....................................................... 57,603,050 18,355,849
Class B shares....................................................... 45,772,562 16,589,188
Dividends reinvested:
Class A shares....................................................... 5,516,098 3,972,773
Class B shares....................................................... 630,384 1,243,012
Cost of shares redeemed:
Class A shares....................................................... (16,025,652) (14,862,567)
Class B shares....................................................... (1,478,443) (3,728,448)
-------------- --------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS..... 92,017,999 21,569,807
-------------- --------------
TOTAL INCREASE IN NET ASSETS................................... 100,900,128 9,663,450
NET ASSETS:
Beginning of period.................................................... 108,246,774 209,146,902
-------------- --------------
End of period.......................................................... $209,146,902 $218,810,352
============= ============
</TABLE>
<TABLE>
<CAPTION>
SHARES
-------------------------------------------------------------------------------
CLASS A CLASS B
----------------------- -----------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
NOVEMBER 30, MAY 31, 1994 NOVEMBER 30, MAY 31, 1994
1993 (UNAUDITED) 1993* (UNAUDITED)
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold...................... 3,927,594 1,241,011 3,069,381 1,124,809
Shares issued for dividends reinvested 373,250 270,481 41,916 84,717
Shares redeemed.................. (1,086,014) (1,024,840) (98,557) (256,798)
-------------- -------------- -------------- --------------
NET INCREASE IN SHARES OUTSTANDING 3,214,830 486,652 3,012,740 952,728
============= =========== ============= ===============
* From January 15, 1993 (commencement of initial offering) to November 30,
1993.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
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 period indicated. This
information has been derived from the Fund's financial statements.
CLASS A SHARES CLASS B SHARES
------------------------------------------------------------- ----------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED
YEAR ENDED NOVEMBER 30, MAY 31, ENDED MAY 31,
---------------------------------------- 1994 NOVEMBER 30, 1994
PER SHARE DATA: 1989 1990 1991 1992 1993 (UNAUDITED) 1993(1) (UNAUDITED)
--------- ------- ------ ------- ------ -------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period............ $12.54 $13.08 $12.88 $13.56 $13.97 $14.97 $14.04 $14.97
--------- ------- ------ ------- ------ -------- ---------- ------------
INVESTMENT OPERATIONS:
Investment income--net. .95 .94 .89 .86 .80 .37 .62 .33
Net realized and unrealized
gain (loss) on investments .54 (.20) .68 .56 1.00 (.67) .93 (.67)
--------- ------- ------ ------- ------ -------- ---------- ------------
TOTAL FROM INVESTMENT
OPERATIONS....... 1.49 .74 1.57 1.42 1.80 (.30) 1.55 (.34)
--------- ------- ------ ------- ------ -------- ---------- ------------
DISTRIBUTIONS:
Dividends from investment
income_net........... (.95) (.94) (.89) (.86) (.80) (.37) (.62) (.33)
Dividends from net realized
gain on investments.. -_ -_ -_ (.15) -_ (.10) -_ (.10)
--------- ------- ------ ------- ------ -------- ---------- ------------
TOTAL DISTRIBUTIONS.. (.95) (.94) (.89) (1.01) (.80) (.47) (.62) (.43)
--------- ------- ------ ------- ------ -------- ---------- ------------
Net asset value, end of period $13.08 $12.88 $13.56 $13.97 $14.97 $14.20 $14.97 $14.20
======= ======= ===== ===== ====== ========= ====== ==========
TOTAL INVESTMENT RETURN (2) 12.23% 5.93% 12.63% 10.79% 13.16% (4.07%)(3) 12.78%(3) (4.65%)(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets... -_ .06% .52% .72% .78% .87%(3) 1.34%(3) 1.44%(3)
Ratio of net investment income
to average net assets 7.11% 7.19% 6.69% 6.16% 5.41% 5.08%(3) 4.41%(3) 4.47%(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% .07%(3) .16%(3) .07%(3)
Portfolio Turnover Rate 21.67% 7.02% 12.45% 12.55% 19.55% 7.10%(4) 19.55% 7.10%(4)
Net Assets, end of period
(000's Omitted)...... $11,800 $39,748 $70,333 $108,247 $164,046 $162,505 $45,101 $56,306
(1) From January 15, 1993 (commencement of initial offering) to November 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
PREMIER NEW YORK MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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").
The Fund offers both Class A and Class B shares. 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 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, 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.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income taxes.
PREMIER NEW YORK MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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, 1993 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
$76,479 for the six months ended May 31, 1994.
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 $36,719 during the six months ended May 31, 1994
from commissions earned on sales of the Fund's Class A shares.
The Distributor retained $99,648 during the six months ended May 31, 1994
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, 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. During the six months
ended May 31, 1994, $130,256 was charged to the Fund pursuant to the Class B
Distribution Plan.
(C) Under the Shareholder Services Plan, 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 six months ended May 31, 1994,
$207,358 and $65,128 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 (the "Merger Agreement") providing for the merger of the Manager
with a subsidiary of Mellon Bank Corporation ("Mellon").
PREMIER NEW YORK MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number
of contingencies, including receipt of certain regulatory approvals and
approvals of stockholders of the Manager and of Mellon. The merger is
expected to occur in August 1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from Fund's shareholders
before completion of the merger. Proxy materials, approved by the Fund's
Board, recently have been mailed to Fund shareholders.
NOTE 3--SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $66,125,500 and
$46,641,869, respectively, for the six months ended May 31, 1994, and
consisted entirely of municipal bonds and short-term municipal investments.
At May 31, 1994, accumulated net unrealized appreciation on investments
was $1,979,046, consisting of $7,381,668 gross unrealized appreciation and
$5,402,622 gross unrealized depreciation.
At May 31, 1994, 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).
PREMIER NEW YORK MUNICIPAL BOND FUND
REVIEW REPORT OF ERNST & YOUNG, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER NEW YORK MUNICIPAL BOND FUND
We have reviewed the accompanying statement of assets and liabilities of
Premier New York Municipal Bond Fund, including the statement of investments,
as of May 31, 1994, and the related statements of operations and changes in
net assets and financial highlights for the six month period ended May 31,
1994. These financial statements and financial highlights are the
responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
November 30, 1993 and financial highlights for each of the five years in the
period ended November 30, 1993 and in our report dated January 5, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Signature Logo)
New York, New York
July 1, 1994
SEMI-ANNUAL REPORT
PREMIER NEW YORK
MUNICIPAL BOND FUND
MAY 31, 1994
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. 021/611SA945
