Dreyfus Premier
New York Municipal
Bond Fund
SEMIANNUAL REPORT
May 31, 1999
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
15 Financial Highlights
18 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
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Dreyfus Premier
New York Municipal Bond Fund The Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier New York
Municipal Bond Fund, covering the six-month period from December 1, 1998 through
May 31, 1999. Inside, you'll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Monica Wieboldt.
Lower short-term interest rates adopted by the Federal Reserve Board and other
central banks in the fall of 1998 appear to have helped many U.S. businesses
withstand the effects of economic weakness in Japan, Asia and Latin America. At
the same time, the U.S. economy entered its eighth year of expansion in an
environment characterized by low inflation and high levels of consumer spending.
Tax-exempt fixed-income securities provided good results in this economic
climate, especially relative to taxable U.S. Treasury securities. While prices
of U.S. Treasury securities declined significantly through most of the reporting
period, a lack of new issuance relative to robust investor demand supported most
municipal bond prices.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier New York Municipal Bond Fund.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
June 14, 1999
2
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DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus Premier New York Municipal Bond Fund perform during the period?
The fund's Class A shares produced a 0.24% total return over the six-month
period ended May 31, 1999,1 compared to a 0.12% total return for the average of
the Lipper New York Municipal Debt Funds category.2 The fund produced a total
return of 0.05% for Class B shares and -0.07% for Class C shares over the same
period.1
What is the fund's investment approach?
Our goal is to seek a high level of federally and New York State tax-exempt
income from a diversified portfolio of longer-term municipal bonds.
To achieve these objectives, we employ two primary strategies. First, we attempt
to add value by selecting the tax-exempt bonds that we believe are most likely
to provide the highest yields. These bonds comprise the portfolio's long-term
core position. We augment the core position with issues such as discounts and
non-callable paper which have potential for capital appreciation.
Second, we tactically manage the portfolio's average duration -- a measure of
sensitivity to changes in interest rates -- in anticipation of temporary
supply-and-demand changes. If we expect the supply of newly issued bonds to
increase, we may reduce the portfolio's average duration to make cash available
for the purchases. Conversely, if we expect demand for municipal bonds to
surge at a time when we anticipate little issuance, we may increase the
portfolio's average duration to maintain current yields for as long as
practical.
The Fund 3
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What other factors influenced the fund's performance?
When the Asian currency and credit crisis spread to Latin America just prior to
the start of the reporting period, investors flocked to U.S. Treasury
securities. As a result, yields on taxable Treasuries fell to levels that were
roughly equivalent to yields on comparable tax-exempt bonds.
However, the Federal Reserve Board and other central banks moved quickly to
stimulate global economic growth by reducing key short-term interest rates.
Because lower short-term interest rates had the potential to reignite
inflationary pressures, yields on longer-term bonds rose. However, the extent of
that rise was much greater for taxable U.S. Treasury securities than for
tax-free municipal bonds.
In addition, because of strong economic conditions throughout the country, New
York State and its municipalities have had less need to borrow. As a result,
fewer tax-exempt bonds were issued in New York than in the same period one year
ago. Yet, demand from investors seeking to minimize their income tax
liabilities remained high. This imbalance between supply and demand helped
municipal bond prices decline less than U.S. Treasury bond prices, as measured
by major market indices and benchmarks.
4
<PAGE>
What is the fund's current strategy?
We have continued to search for the most attractive values in the New York
municipal market. We have found such values, in our opinion, in bonds issued by
municipalities such as New York City, which has traditionally offered higher
yields than most other New York issuers. However, a strong economy and prudent
fiscal management have improved New York City's financial condition, and new
issues have reflected that improvement. The fund continually evaluates
situations such as private placements or smaller issuers that provide
opportunities to enhance or maintain yield. We expect these strategies to help
us continue to maximize tax-exempt returns for our shareholders.
June 14, 1999
1 Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares, or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and Class C shares. Had these
charges been reflected, returns would have been lower. Past performance is no
guarantee of future results. Share price and investment return fluctuate such
that upon redemption fund shares may be worth more or less than their original
cost. Income may be subject to state and local income taxes for non-New York
residents, and some income may be subject to the Federal Alternative Minimum
Tax (AMT) for certain shareholders. Capital gains, if any, are fully
taxable.
2 Source: Lipper Analytical Services, Inc.
The Fund 5
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STATEMENT OF INVESTMENTS
May 31, 1999 (Unaudited)
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Principal
Long-Term Municipal Investments--99.3% Amount ($) Value ($)
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New York--89.8%
Albany Industrial Development Agency:
Civic Facility Revenue (Sage Colleges
(Project) 5.25%, 4/1/2019 1,140,000 1,118,842
Lease Revenue:
(New York State Assembly Building Project)
7.75%, 1/1/2010 1,395,000 1,494,966
(New York State Department of Health
Building Project) 7.25%, 10/1/2010 1,410,000 1,568,103
Erie County Industrial Development Agency,
Life Care Community Revenue
(Episcopal Church Home) 6%, 2/1/2028 2,250,000 2,255,040
Housing New York Corp., Local or Guaranteed Housing
Revenue 5.50%, 11/1/2010 2,650,000 2,748,447
Huntington Housing Authority, Senior Housing
Facility Revenue (Gurwin Jewish
Senior Residences) 6%, 5/1/2029 1,370,000 1,366,137
Long Island Power Authority, Electric System General
Revenue 5.50%, 12/1/2029 5,110,000 5,170,349
Metropolitan Transportation Authority:
Commuter Facilities Revenue
5.70%, 7/1/2017 (Insured; MBIA) 5,895,000 6,221,937
Dedicated Tax Fund 5%, 4/1/2029 (Insured; FSA) 2,500,000 2,393,425
Transit Facilities Revenue:
6.65% 7/1/2014a 2,000,000 2,035,960
6%, 7/1/2016 (Insured; FSA) 3,000,000 3,227,070
5.375%, 7/1/2021 2,000,000 2,001,440
New York City:
6.75%, 2/1/2009 2,000,000 2,309,740
5.875%, 8/15/2016 4,900,000 5,231,093
6%, 8/1/2017 3,000,000 3,234,810
6%, 2/15/2020 3,230,000 3,423,638
6%, 2/15/2020 (Prerefunded 2/15/2005)b 1,270,000 1,390,574
6%, 8/1/2021 4,000,000 4,307,480
5.875%, 8/1/2024 2,000,000 2,128,420
6.625%, 8/1/2025 4,095,000 4,547,129
6.625%, 8/1/2025 (Prerefunded 8/1/2005)b 995,000 1,131,215
5%, 3/15/2029 3,000,000 2,829,300
New York City Health and Hospitals Corp.,
Health Systems Revenue 5.25%, 2/15/2017 1,700,000 1,667,207
New York City Housing Development Corp., MFHR
5.625%, 5/1/2012 1,415,000 1,497,820
6
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Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
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New York (continued)
New York City Industrial Development Agency:
Civic Facility Revenue:
Lease Revenue, (College of Aeronautics Project)
5.45%, 5/1/2018 1,000,000 1,007,740
(YMCA of Greater New York Project)
5.80%, 8/1/2016 1,000,000 1,040,750
IDR (Laguardia Association LP Project) 6%, 11/1/2028 2,750,000 2,762,952
Special Facility Revenue:
(American Airlines Inc. Project):
5.40%, 7/1/2020 2,000,000 2,011,200
6.90%, 8/1/2024 2,000,000 2,189,220
(Terminal One Group Association Project)
6%, 1/1/2019 3,000,000 3,145,110
New York City Municipal Water Finance Authority,
Water and Sewer Systems Revenue 6%, 6/15/2010 4,100,000 4,530,910
New York City Transitional Finance Authority, Revenue
4.75%, 5/1/2023 1,000,000 926,510
New York State Dormitory Authority, Revenues:
4201 Schools Program 5%, 7/1/2018 1,400,000 1,340,962
(Consolidated City University System):
5.75%, 7/1/2007 (Insured; AMBAC) 3,150,000 3,435,610
5.35%, 7/1/2009 (Insured; FGIC) 1,500,000 1,590,570
5.75%, 7/1/2009 (Insured; AMBAC) 3,000,000 3,272,100
5.50%, 7/1/2016 (Insured; AMBAC) 2,200,000 2,273,788
5.625%, 7/1/2016 4,000,000 4,211,680
6.30%, 7/1/2024 (Prerefunded 7/1/2004)b 500,000 557,095
Health Hospital and Nursing Home:
(Carmel Richmond Nursing Home)
5%, 7/1/2015 (LOC; Allied Irish Bank PLC) 3,515,000 3,407,160
(Department of Health) 5.75%, 7/1/2017 1,000,000 1,037,560
(Ideal Senior Living Center Housing Corp.)
5.90%, 8/1/2026 (Insured; MBIA; FHA) 1,000,000 1,051,070
(Municipal Health Facilities Improvement
Program) 5.50%, 5/15/2024 (Insured; FSA) 1,000,000 1,028,110
(Municipal Health Facilities Improvement Program)
4.75%, 1/15/2029 2,500,000 2,286,775
State University Educational Facilities
5.875%, 5/15/2017 2,000,000 2,169,780
New York State Energy Research and Development
Authority, Electric Facilities Revenue
(Consolidated Edison Co. Project) 7.125%, 12/1/2029 5,000,000 5,679,450
New York State Environmental Facilities Corp., PCR
(Pilgrim State Sewer Project) 6.30% 3,000,000 3,286,410
The Fund 7
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
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New York (continued)
New York State Housing Finance Agency, Revenue:
Health Facilities (New York City) 6%, 11/1/2007 4,000,000 4,356,360
Housing Project Mortgage
6.10%, 11/1/2015 (Insured; FSA) 1,960,000 2,118,642
Service Contract Obligation:
6.25%, 9/15/2010 3,000,000 3,281,670
5.25%, 9/15/2011 2,000,000 2,030,320
5.50%, 9/15/2018 4,000,000 4,099,520
New York State Medical Care Facilities Finance Agency,
Hospital and Nursing Home FHA Insured Mortgage
Revenue:
6.05%, 2/15/2015 3,000,000 3,194,220
(Montefiore Medical Center)
5.75%, 2/15/2025 (Insured; AMBAC) 500,000 518,375
New York State Mortgage Agency, Homeownership
Mortgage Revenue 6%, 4/1/2017 2,000,000 2,129,800
New York State Thruway Authority, Service Contract
Revenue (Local Highway and Bridge):
6%, 4/1/2011 5,000,000 5,455,100
5.75%, 4/1/2016 3,000,000 3,157,890
New York State Urban Development Corp., Revenue,
Correctional Capital Facilities:
6.10%, 1/1/2011 4,000,000 4,327,880
6.50%, 1/1/2011 (Insured; FSA) 3,190,000 3,672,264
5.375%, 1/1/2015 2,850,000 2,871,290
5.70%, 1/1/2016 9,350,000 9,738,493
Orange County Industrial Development Agency,
Life Care Community Revenue
(Glen Arden Inc. Project) 5.625%, 1/1/2018 1,000,000 988,250
Port Authority of New York and New Jersey, Special
Obligation Revenue (JFK International Airport)
5.75%, 12/1/2025 (Insured; MBIA) 4,025,000 4,207,977
Rensselaer County Industrial Development Agency, IDR
(Albany International Corp.)
7.55%, 6/1/2007 (LOC; Norstar Bank) 1,500,000 1,774,215
Scotia Housing Authority, Housing Revenue
(Coburg Village Inc. Project) 6.15%, 7/1/2028 3,000,000 3,016,560
Triborough Bridge and Tunnel Authority:
Highway and Toll Revenue:
6%, 1/1/2012 2,000,000 2,225,740
6.125%, 1/1/2021 2,000,000 2,267,760
Lease Revenue (Convention Center Project)
7.25%, 1/1/2010 1,000,000 1,162,350
8
<PAGE>
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Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
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New York (continued)
Watervliet Housing Authority, Residential Housing
Revenue (Beltrone Living Center Project) 6%, 6/1/2028 1,000,000 1,000,630
Yonkers 5.50%, 9/1/2012 (Insured; FGIC) 1,235,000 1,290,538
Yonkers Industrial Development Agency, Civic Facility
Revenue (Saint Joseph's Hospital) 5.90%, 3/1/2008 1,700,000 1,691,466
U.S. Related--9.5%
Guam Airport Authority, Airport Revenue 6.70%, 10/1/2023 2,000,000 2,185,080
Guam Power Authority, Electric Power and Light
Revenue 5.25%, 10/1/2034 1,750,000 1,707,300
Commonwealth of Puerto Rico:
5.50%, 7/1/2011 1,500,000 1,593,285
6%, 7/1/2026 (Prerefunded 7/1/2007)b 5,000,000 5,623,150
Puerto Rico Highway and Transportation Authority,
Transportation Revenue
6.451%, 7/1/2038 (Insured; MBIA) 2,500,000 2,350,400
Puerto Rico Industrial Medical Educational and
Environmental Pollution Control Facilities Financing
Authority, HR (Saint Luke's Hospital Project)
6.25%, 6/1/2010 1,100,000 1,175,405
Puerto Rico Public Buildings Authority, Revenue,
Public Education and Health Facilities 5.70%, 7/1/2009
(Guaranteed; Commonwealth of Puerto Rico) 2,235,000 2,419,410
Virgin Islands Public Finance Authority, Revenue
5.50%, 10/1/2014 3,000,000 3,047,880
Total Long-Term Municipal Investments
(cost $198,731,138) 210,221,874
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Short-Term Municipal Investments--.9%
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New York;
Port Authority of New York and New Jersey,
Special Obligation Revenue, VRDN
(Versatile Structure Obligation)
3.25% (SBPA; Morgan Guaranty Trust Co.)c
(cost $2,000,000) 2,000,000 2,000,000
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Total Investments (cost $200,731,138) 100.2% 212,221,874
Liabilities, Less Cash and Receivables (.2%) (411,243)
Net Assets 100.0% 211,810,631
The Fund 9
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
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Summary of Abbreviations
AMBAC American Municipal Bond Assurance MBIA Municipal Bond Investors
Corporation Assurance Insurance
FGIC Financial Guaranty Insurance Company Corporation
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
HR Hospital Revenue SBPA Standby Bond Purchase Agreement
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
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Summary of Combined Ratings
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 25.8
AA Aa AA 7.6
A A A 30.8
BBB Baa BBB 27.3
F1 Mig1 SP1 .9
Not Ratedd Not Ratedd Not Ratedd 7.6
100.0
a Inverse floater security-the interest rate is subject to change periodically.
b Bonds which are prerefunded are collateralized by U.S. Government securities
which are held in escrow and are used to pay principal and interest on the
municipal issue and to retire the bonds in full at the earliest refunding
date.
c Securities payable on demand. Variable interest rate-subject to periodic
change.
d Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the fund may invest.
See notes to financial statements.
10
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
May 31, 1999 (Unaudited)
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Cost Value
- --------------------------------------------------------------------------------
Assets ($):
Investments in securities--See Statement of
Investments 200,731,138 212,221,874
Cash 116,544
Interest receivable 3,862,052
Receivable for shares of Beneficial Interest subscribed 31,952
Prepaid expeses 29,619
216,262,041
- --------------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation and affiliates 101,179
Due to Distributor 79,018
Payable for investment securities purchased 4,120,514
Payable for shares of Beneficial Interest redeemed 90,785
Accrued expenses 59,914
4,451,410
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Net Assets ($) 211,810,631
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Composition of Net Assets ($):
Paid-in capital 198,915,508
Accumulated net realized gain (loss) on investments 1,404,387
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 11,490,736
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Net Assets ($) 211,810,631
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Net Asset Value Per Share
Class A Class B Class C
- --------------------------------------------------------------------------------
Net Assets ($) 134,203,374 75,787,464 1,819,793
Shares Outstanding 8,933,802 5,043,969 121,107
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Net Asset Value Per Share ($) 15.02 15.03 15.03
See notes to financial statements.
The Fund 11
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended May 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Investment Income ($)
- --------------------------------------------------------------------------------
Interest Income 5,887,638
Expenses:
Management fee--Note 3(a) 596,775
Shareholder servicing costs--Note 3(c) 337,394
Distribution fees--Note 3(b) 208,215
Professional fees 16,488
Custodian fees 11,434
Prospectus and shareholders' reports 10,691
Registration fees 9,000
Trustees' fees and expenses--Note 3(d) 8,229
Loan commitment fees--Note 2 514
Miscellaneous 8,342
Total Expenses 1,207,082
Investment Income--Net 4,680,556
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Realized and Unrealized Gain (Loss) on Investments--Note 4($):
Net realized gain (loss) on investments 1,405,443
Net unrealized appreciation (depreciation) on investments (5,697,213)
Net Realized and Unrealized Gain (Loss) on Investments (4,291,770)
Net Increase in Net Assets Resulting from Operations 388,786
See notes to financial statements.
12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
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Six Months Ended
May 31, 1999 Year Ended
(Unaudited) November 30, 1998
- --------------------------------------------------------------------------------
Operations ($):
Investment income--net 4,680,556 9,190,186
Net realized gain (loss) on investments 1,405,443 1,521,217
Net unrealized appreciation (depreciation)
on investments (5,697,213) 4,753,371
Net Increase (Decrease) in Net Assets
Resulting from Operations 388,786 15,464,774
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Dividends to Shareholders from ($):
Investment income--net:
Class A shares (3,034,897) (5,915,440)
Class B shares (1,614,143) (3,251,012)
Class C shares (31,516) (23,734)
Net realized gain on investments:
Class A shares (917,893) (2,048,335)
Class B shares (571,053) (1,272,846)
Class C shares (10,904) (1,346)
Total Dividends (6,180,406) (12,512,713)
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Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Class A shares 21,644,978 19,664,934
Class B shares 5,693,370 10,637,510
Class C shares 600,477 1,510,679
Dividends reinvested:
Class A shares 2,648,762 5,357,995
Class B shares 1,608,031 3,412,975
Class C shares 30,092 15,935
Cost of shares redeemed:
Class A shares (20,914,819) (21,240,900)
Class B shares (12,812,418) (11,853,475)
Class C shares (352,697) (40,780)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions (1,854,224) 7,464,873
Total Increase (Decrease) in Net Assets (7,645,844) 10,416,934
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Net Assets ($):
Beginning of Period 219,456,475 209,039,541
End of Period 211,810,631 219,456,475
See notes to financial statements.
The Fund 13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (continued)
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Six Months Ended
May 31, 1999 Year Ended
(Unaudited) November 30, 1998
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Capital Share Transactions:
Class A
Shares sold 1,417,834 1,288,205
Shares issued for dividends reinvested 173,373 352,193
Shares redeemed (1,369,542) (1,391,194)
Net Increase (Decrease) in Shares Outstanding 221,665 249,204
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Class B
Shares sold 372,645 696,007
Shares issued for dividends reinvested 105,186 224,370
Shares redeemed (839,972) (778,462)
Net Increase (Decrease) in Shares Outstanding (362,141) 141,915
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Class C
Shares sold 39,360 98,801
Shares issued for dividends reinvested 1,970 1,038
Shares redeemed (23,116) (2,665)
Net Increase (Decrease) in Shares Outstanding 18,214 97,174
See notes to financial statements.
14
<PAGE>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single fund share. Total return shows how much your investment in the fund would
have increased (or decreased) during each period, assuming you had reinvested
all dividends and distributions. These figures have been derived from the fund's
financial statements.
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Six Months Ended
May 31, 1999 Year Ended November 30,
------------------------------------
Class A Shares (Unaudited) 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
Per Share Data ($):
Net asset value,
beginning of period 15.43 15.22 14.94 14.93 13.01 14.97
Investment Operations:
Investment income--net .34 .69 .71 .73 .75 .75
Net realized and unrealized gain
(loss) on investments (.30) .45 .35 .01 1.92 (1.86)
Total from Investment Operations .04 1.14 1.06 .74 2.67 (1.11)
Distributions:
Dividends from investment
income--net (.34) (.69) (.71) (.73) (.75) (.75)
Dividends from net realized
gain on investments (.11) (.24) (.07) -- -- (.10)
Total Distributions (.45) (.93) (.78) (.73) (.75) (.85)
Net asset value, end of period 15.02 15.43 15.22 14.94 14.93 13.01
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Total Return (%)a .48b 7.74 7.31 5.17 20.93 (7.76)
- --------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average
net assets .92b .93 .92 .92 .94 .89
Ratio of net investment income
to average net assets 4.51b 4.50 4.78 4.99 5.27 5.25
Decrease reflected in above
expense ratios due to
undertakings by the Manager -- -- -- -- -- .04
Portfolio Turnover Rate 12.87c 34.48 74.84 53.74 74.11 31.76
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Net Assets, end of period
($ x 1,000) 134,203 134,432 128,811 135,413 146,207 137,978
a Exclusive of sales charge.
b Annualized.
c Not annualized.
See notes to financial statements.
The Fund 15
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
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Six Months Ended
May 31, 1999 Year Ended November 30,
------------------------------------
Class B Shares (Unaudited) 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
Per Share Data ($):
Net asset value,
beginning of period 15.43 15.22 14.94 14.93 13.02 14.97
Investment Operations:
Investment income--net .30 .61 .63 .65 .67 .67
Net realized and unrealized gain
(loss) on investments (.29) .45 .35 .01 1.91 (1.85)
Total from Investment Operations .01 1.06 .98 .66 2.58 (1.18)
Distributions:
Dividends from investment
income--net (.30) (.61) (.63) (.65) (.67) (.67)
Dividends from net realized
gain on investments (.11) (.24) (.07) -- -- (.10)
Total Distributions (.41) (.85) (.70) (.65) (.67) (.77)
Net asset value, end of period 15.03 15.43 15.22 14.94 14.93 13.02
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Total Return (%)a .10b 7.20 6.77 4.61 20.20 (8.20)
- --------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average
net assets 1.43b 1.44 1.44 1.44 1.46 1.44
Ratio of net investment income
to average net assets 4.00b 3.99 4.26 4.45 4.72 4.70
Decrease reflected in above
expense ratios due to
undertakings by the Manager -- -- -- -- -- .04
Portfolio Turnover Rate 12.87c 34.48 74.84 53.74 74.11 31.76
- --------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 75,787 83,437 80,142 71,392 66,873 52,970
a Exclusive of sales charge.
b Annualized.
c Not annualized.
See notes to financial statements.
16
<PAGE>
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Six Months Ended
May 31, 1999 Year Ended November 30,
---------------------------
Class C Shares (Unaudited) 1998 1997 1996 1995a
- --------------------------------------------------------------------------------
Per Share Data ($):
Net asset value, beginning of period 15.43 15.23 14.95 14.93 14.61
Investment Operations:
Investment income--net .28 .57 .60 .62 .14
Net realized and unrealized gain (loss)
on investments (.29) .44 .35 .02 .32
Total from Investment Operations (.01) 1.01 .95 .64 .46
Distributions:
Dividends from investment income--net (.28) (.57) (.60) (.62) (.14)
Dividends from net realized gain on
investments (.11) (.24) (.07) -- --
Total Distributions (.39) (.81) (.67) (.62) (.14)
Net asset value, end of period 15.03 15.43 15.23 14.95 14.93
- --------------------------------------------------------------------------------
Total Return (%)b (.14)c 6.87 6.50 4.43 14.19c
- --------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assets 1.66c 1.62 1.69 1.59 1.74c
Ratio of net investment income
to average net assets 3.76c 3.63 4.08 3.98 4.00c
Portfolio Turnover Rate 12.87d 34.48 74.84 53.74 74.11
Net Assets, end of period ($ x 1,000) 1,820 1,588 87 485 1
a From September 11, 1995 (commencement of initial offering) to November 30,
1995.
b Exclusive of sales charge.
c Annualized.
d Not annualized.
See notes to financial statements.
The Fund 17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier New York Municipal Bond Fund (the "fund") is registered under
the Investment Company Act of 1940, as amended (the "Act"), as a non-diversified
open-end management investment company. The fund's investment objective is to
maximize current income exempt from Federal, New York State and New York City
income taxes to the extent consistent with the preservation of capital. The
Dreyfus Corporation (the "Manager") serves as the fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund's shares. The fund is authorized to issue an unlimited number of $.001 par
value shares in the following classes of shares: Class A, Class B and Class C.
Class A shares are subject to a sales charge imposed at the time of purchase and
Class B shares are subject to a contingent deferred sales charge ("CDSC")
imposed on Class B share redemptions made within six years of purchase (five
years for shareholders beneficially owning Class B shares on November 30, 1996)
and Class C shares are subject to a CDSC imposed on Class C shares redeemed
within one year of purchase. Other differences between the classes include the
services offered to and the expenses borne by each class and certain voting
rights.
The fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from these estimates.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its
18
<PAGE>
evaluation of the market for such securities). Other investments (which
constitute a majority of the portfolio securities) are carried at fair value as
determined by the Service, based on methods which include consideration of:
yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the fund receives net earnings credits based on available cash
balances left on deposit.
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 of 1986, as amended (the
"Code"). To the
The Fund 19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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 Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrow ings. During the period ended May
31, 1999, the fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions
With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .55 of 1% of the value of the fund's average
daily net assets and is payable monthly.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, retained
$1,429 during the period ended May 31, 1999 from commissions earned on sales of
the fund's shares.
(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act,
Class B and Class C shares pay the Distributor for distributing their shares at
an annual rate of .50 of 1% of the value of the average daily net assets of
Class B shares and .75 of 1% of the value of the average daily net assets of
Class C shares. During the period ended May 31, 1999, Class B and Class C shares
were charged $201,925 and $6,290, respectively, pursuant to the Distribution
Plan.
20
<PAGE>
(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay
the Distributor at an annual rate of .25 of 1% of the value of their average
daily net assets for the provision of certain services. 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 (a securities
dealer, financial institution or other industry professional) in respect of
these services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended May 31, 1999, Class A, Class B and Class C
shares were charged $168,202, $100,962 and $2,097, respectively, pursuant to the
Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended May 31, 1999, the fund was charged $51,310 pursuant to the transfer agency
agreement.
(d) Each trustee who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $1,000 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended May 31, 1999, amounted to
$29,648,267 and $27,658,153, respectively.
At May 31, 1999, accumulated net unrealized appreciation on investments was
$11,490,736, consisting of $12,144,661 gross unrealized appreciation and
$653,925 gross unrealized depreciation.
At May 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund 21
<PAGE>
For More Information
Dreyfus Premier
New York Municipal
Bond Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call your financial
representative or
1-800-554-4611
By mail Write to:
The Dreyfus Premier
Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 021/611SA995
