Dreyfus Premier
New York Municipal
Bond Fund
SEMIANNUAL REPORT May 31, 2000
(reg.tm)
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
Contents
THE FUND
--------------------------------------------------
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
The Fund
Dreyfus Premier New York Municipal Bond 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, 1999 through
May 31, 2000. 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.
The U.S. economy grew strongly over the past six months in an environment
characterized by high levels of consumer spending and low levels of
unemployment. Concerns that inflationary pressures might reemerge caused the
Federal Reserve Board to raise short-term interest rates three times during the
reporting period. These rate hikes contributed to a total interest-rate increase
of 1.75 percentage points since June 1999, before the current reporting period
began. Despite an encouraging rally during the first quarter of 2000, higher
interest rates generally led to an erosion of municipal bond prices during the
reporting period.
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,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
June 15, 2000
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus Premier New York Municipal Bond Fund perform during the period?
For the six-month reporting period ended May 31, 2000, the fund achieved a total
return of 0.97% for Class A shares, 0.64% for Class B shares and 0.52% for Class
C shares.(1) In comparison, the fund's peer group, as measured by the Lipper New
York Municipal Debt Funds category average, achieved a total return of 0.55% for
the same period.(2)
We attribute the fund's good relative performance to our defensive strategy for
our core holdings during a difficult investment environment. In addition, we
believe that the fund's yield benefited from our focus on income generated by
bonds that we consider to be shorter term, more opportunistic holdings.
What is the fund's investment approach?
The fund's objective is to seek a high level of federal, New York state and New
York City tax-exempt income as is consistent with the preservation of capital
from a diversified portfolio of municipal bonds from New York issuers
In managing the fund, we attempt to add value by selecting tax-exempt bonds in
the maturity ranges 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 shorter term holdings in bonds that we believe have the
potential to provide both competitive yields and the potential for capital
appreciation.
What other factors influenced the fund's performance?
The fund was influenced by changing market conditions and shifting investor
sentiment over the past six months. Although the first quarter of 2000
experienced an encouraging municipal bond market rally, the
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
months immediately preceding and following the first quarter saw a more
difficult investment environment. As a result, performance on a total return
basis was generally flat over the full six-month reporting period.
When the reporting period began on December 1, 1999, investors had become
concerned that strong economic growth in U.S. and worldwide economies might
rekindle long-dormant inflationary pressures, especially wages in a tight job
market. In an attempt to ease these pressures and forestall a reacceleration of
inflation, the Federal Reserve Board (the "Fed") raised short-term interest
rates three times during the reporting period, causing most bond prices to fall,
including those of many of the fund' s holdings.
In addition, municipal bond prices fell because of adverse supply-and-demand
influences. For a variety of reasons, institutional investors such as insurance
companies have recently participated less in the tax-exempt bond market. Despite
strong demand from individual investors, the absence of institutional buyers
helped reduce overall demand and, therefore, drove municipal bond prices down,
including those of many of the fund's holdings. During the first few months of
2000, however, issuance of municipal bonds nationally declined sharply compared
to the same period one year ago. This supply reduction, combined with continued
robust demand from individual investors, helped support a brief rebound of
municipal bond prices, from which the fund's holdings benefited.
Although New York is considered a high-issuance state, the supply of newly
issued bonds has declined there as well. Some New York municipalities that
refinanced bond issues during the low interest-rate environment over the past
several years are expected to be absent from this year's municipal bond
marketplace. As a result, we believe that New York municipal bonds are currently
trading at attractive levels compared to bonds from other states.
What is the fund's current strategy?
We began to adopt a more defensive posture in the wake of the market rally that
took place during the first quarter of 2000, and we have generally maintained
that posture through the end of the reporting period. That's because we
anticipated the Fed's May 16 interest-rate hike, which at 0.50 percentage points
was particularly severe. This provided us with the flexibility to add issues
with strong income characteristics and call protection as the effect of the rate
increase filtered through the market. However, we are aware that more rate hikes
may be implemented in the near future should inflationary fears persist.
From a security selection perspective, we have recently been reducing our
holdings of bonds that may be close to early redemption by their issuers. That's
because municipal bonds tend to have limited appreciation potential when they
are close to early redemption, also known as their call dates.
June 15, 2000
(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, YIELD 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 TAXES FOR NON-NEW YORK
RESIDENTS AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX
(AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE.
2 SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
<TABLE>
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<S> <C> <C>
STATEMENT OF INVESTMENTS
May 31, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
LONG-TERM MUNICIPAL INVESTMENTS--97.9% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK--90.9%
Albany Industrial Development Agency:
Lease Revenue:
(New York State Assembly Building Project)
7.75%, 1/1/2010 1,345,000 1,355,787
(New York State Department of Health
Building Project) 7.25%, 10/1/2010 1,395,000 1,429,429
Civic Facility Revenue (Sage Colleges Project):
5.25%, 4/1/2019 1,140,000 1,009,550
5.30%, 4/1/2029 1,000,000 856,790
Erie County Industrial Development Agency,
Life Care Community Revenue
(Episcopal Church Home) 6%, 2/1/2028 2,250,000 1,826,325
Housing New York Corp., Local or Guaranteed Housing
Revenue 5.50%, 11/1/2010 2,650,000 2,621,963
Huntington Housing Authority, Senior Housing
Facility Revenue (Gurwin Jewish
Senior Residences) 6%, 5/1/2029 1,370,000 1,088,328
Long Island Power Authority, Electric Power and Light
System Revenue 5.25%, 12/1/2026 (Insured; MBIA) 2,000,000 1,767,280
Metropolitan Transportation Authority:
Commuter Facilities Revenue
5.70%, 7/1/2017 (Insured; MBIA) 5,895,000 5,809,346
Transit Facilities Revenue:
4.971% 7/1/2014 2,000,000 (a) 1,758,860
6%, 7/1/2016 (Insured; FSA) 3,000,000 3,052,620
Newburg Industrial Development Agency, IDR (Bourne and
Kenney Redevelopment Co.) :
5.65%, 8/1/2020 (Guaranteed; SONYMA) 830,000 768,887
5.75%, 8/1/2032 (Guaranteed; SONYMA) 1,000,000 916,560
New York City:
6.75%, 2/1/2009 2,000,000 2,161,020
6%, 8/1/2017 3,000,000 3,004,950
6%, 5/15/2020 2,000,000 1,982,720
6.625%, 8/1/2025 4,095,000 4,225,057
New York City Housing Development Corp., MFHR
5.625%, 5/1/2012 1,415,000 1,396,223
New York City Industrial Development Agency:
Civic Facility Revenue:
Lease Revenue (College of Aeronautics Project)
5.45%, 5/1/2018 1,000,000 885,980
(YMCA of Greater New York Project)
5.80%, 8/1/2016 1,000,000 962,290
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York City Industrial Development Agency (continued):
IDR (Laguardia Association LP Project) 6%, 11/1/2028 2,750,000 2,316,765
Special Facility Revenue:
(American Airlines Inc. Project)
6.90%, 8/1/2024 2,000,000 2,007,980
(Terminal One Group Association Project)
6%, 1/1/2019 3,000,000 2,955,270
New York City Municipal Water Finance Authority,
Water and Sewer Systems Revenue:
5.50%, 6/15/2023 2,000,000 1,851,340
5.50%, 6/15/2032 (Insured; FGIC) 2,500,000 2,306,325
New York City Transitional Finance Authority, Revenue:
6%, 11/15/2013 2,000,000 2,068,100
5%, 5/1/2029 3,000,000 2,532,660
New York State Dormitory Authority, Revenues:
4201 Schools Program 5%, 7/1/2018 1,400,000 1,209,894
(Consolidated City University System):
5.75%, 7/1/2009 (Insured; AMBAC) 3,000,000 3,069,030
5.25%, 7/1/2014 (Insured; FGIC) 1,500,000 1,431,675
5.50%, 7/1/2016 (Insured; AMBAC) 2,200,000 2,134,814
5.625%, 7/1/2016 4,000,000 3,933,360
Health Hospital and Nursing Home:
(Carmel Richmond Nursing Home)
5%, 7/1/2015 (LOC; Allied Irish Bank PLC) 3,515,000 3,094,360
(Department of Health) 5.75%, 7/1/2017 1,000,000 959,540
(Ideal Senior Living Center Housing Corp.)
5.90%, 8/1/2026 (Insured; MBIA; FHA) 1,000,000 977,110
(Miriam Osborn Memorial Home)
6.875%, 7/1/2019 (Insured; ACA) 1,000,000 1,053,690
(Municipal Health Facilities Improvement
Program) 5.50%, 5/15/2024 (Insured; FSA) 1,000,000 929,070
(North General Hospital)
5.20%, 2/15/2015 (Insured; AMBAC) 2,000,000 1,870,340
State University Educational Facilities:
5.875%, 5/15/2017 2,000,000 2,021,380
4.75%, 5/15/2025 (Insured; MBIA) 1,000,000 817,600
5.50%, 5/15/2026 (Insured; FSA) 5,000,000 4,626,700
New York State Environmental Facilities Corp., PCR
(Pilgrim State Sewer Project) 6.30%, 3/15/2016 3,000,000 3,065,910
New York State Housing Finance Agency, Revenue:
Health Facilities (New York City) 6%, 11/1/2007 4,000,000 4,084,840
Housing Project Mortgage
6.10%, 11/1/2015 (Insured; FSA) 1,960,000 1,994,300
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Housing Finance Agency, Revenue (continued):
Service Contract Obligation:
6.25%, 9/15/2010 3,000,000 3,094,260
5.25%, 9/15/2011 1,500,000 1,426,845
5.50%, 9/15/2018 4,000,000 3,714,400
New York State Medical Care Facilities Finance Agency,
Hospital and Nursing Home FHA Insured Mortgage
Revenue 6.05%, 2/15/2015 3,000,000 3,034,020
New York State Mortgage Agency, Homeownership
Mortgage Revenue:
6%, 4/1/2017 2,000,000 1,987,240
5.95%, 4/1/2030 1,995,000 1,899,838
New York State Thruway Authority, Service Contract
Revenue (Local Highway and Bridge):
6%, 4/1/2011 5,000,000 5,090,350
5.75%, 4/1/2016 3,000,000 2,925,240
5.75%, 4/1/2019 2,000,000 1,916,660
New York State Urban Development Corp., Revenue,
Correctional Capital Facilities:
6.10%, 1/1/2011 4,000,000 4,072,320
5.375%, 1/1/2015 2,850,000 2,666,488
5.70%, 1/1/2016 9,350,000 9,072,586
Niagara Frontier Transportation Authority, Airport Revenue
(Buffalo Niagara International Airport)
5.625%, 4/1/2029 (Insured; MBIA) 2,000,000 1,862,660
Orange County Industrial Development Agency,
Life Care Community Revenue
(Glen Arden Inc. Project) 5.625%, 1/1/2018 1,000,000 806,340
Rensselaer County Industrial Development Agency, IDR
(Albany International Corp.)
7.55%, 6/1/2007 (LOC; Norstar Bank) 1,500,000 1,653,630
Scotia Housing Authority, Housing Revenue
(Coburg Village Inc. Project) 6.15%, 7/1/2028 3,000,000 2,481,480
Triborough Bridge and Tunnel Authority, Revenue:
Highway and Toll 6%, 1/1/2012 2,000,000 2,085,600
Lease (Convention Center Project)
7.25%, 1/1/2010 1,000,000 1,093,390
TSASC, Inc., Tobacco Flexible Amortization Bonds
6.375%, 7/15/2039 4,000,000 3,958,680
Ulster County Industrial Development Agency, Civic Facility
Revenue (Benedictine Hospital Project) 6.40%, 6/1/2014 730,000 666,490
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
Watervliet Housing Authority, Residential Housing
Revenue (Beltrone Living Center Project) 6%, 6/1/2028 1,000,000 840,670
Yonkers 5.50%, 9/1/2012 (Insured; FGIC) 1,235,000 1,229,986
Yonkers Industrial Development Agency, Civic Facility
Revenue (Saint Joseph's Hospital) 5.90%, 3/1/2008 1,700,000 1,581,816
U.S. RELATED --7.0%
Guam Airport Authority, Airport Revenue 6.70%, 10/1/2023 2,000,000 2,015,860
Puerto Rico Highway and Transportation Authority,
Transportation Revenue:
5%, 7/1/2038 (Insured; MBIA) 2,500,000 2,112,425
6%, 7/1/2039 3,500,000 3,445,330
Puerto Rico Industrial Medical Educational and
Environmental Pollution Control Facilities Financing
Authority, HR (Saint Luke's Hospital Project)
6.25%, 6/1/2010 (Prerefunded 6/1/2006) 1,100,000 (b) 1,152,822
Virgin Islands Public Finance Authority, Revenue
5.50%, 10/1/2014 3,000,000 2,830,710
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $166,256,559) 162,910,154
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SHORT-TERM MUNICIPAL INVESTMENTS--3.7%
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK;
New York City, VRDN
4.40% (Insured; MBIA, SBPA; Credit Agricole Indosez) 2,500,000 (c) 2,500,000
Port Authority of New York and New Jersey,
Special Obligation Revenue, VRDN
(Versatile Structure Obligation)
4.45% (SBPA; Bank of Nova Scotia) 3,700,000 (c) 3,700,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $6,200,000) 6,200,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $172,456,559) 101.6% 169,110,154
LIABILITIES, LESS CASH AND RECEIVABLES (1.6%) (2,633,519)
NET ASSETS 100.0% 166,476,635
</TABLE>
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
ACA American Capital Access
AMBAC American Municipal Bond
Assurance Corporation
FGIC Financial Guaranty Insurance
Company
FHA Federal Housing Administration
FSA Financial Security Assurance
HR Hospital Revenue
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
Insurance Corporation
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SBPA Standby Bond Purchase Agreement
SONYMA State of New York
Mortgage Agency
VRDN Variable Rate Demand Notes
<TABLE>
<S> <C> <C> <C>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 25.7
AA Aa AA 15.1
A A A 41.7
BBB Baa BBB 5.3
F1 Mig 1 SP1 3.7
Not Rated(d) Not Rated(d) Not Rated(d) 8.5
100.0
(A) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE PERIODICALLY.
(B) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(C) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(D) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 172,456,559 169,110,154
Interest receivable 2,905,703
Receivable for shares of Beneficial Interest subscribed 326,767
Prepaid expenses 17,758
172,360,382
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 126,370
Cash overdraft due to Custodian 98,145
Payable for investment securities purchased 5,343,562
Payable for shares of Beneficial Interest redeemed 243,094
Accrued expenses 72,576
5,883,747
--------------------------------------------------------------------------------
NET ASSETS ($) 166,476,635
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 171,377,976
Accumulated net realized gain (loss) on investments (1,554,936)
Accumulated net unrealized appreciation
(depreciation) on investments--Note 4 (3,346,405)
--------------------------------------------------------------------------------
NET ASSETS ($) 166,476,635
NET ASSET VALUE PER SHARE
Class A Class B Class C
-------------------------------------------------------------------------------
NET ASSETS ($) 123,575,335 40,981,197 1,920,103
Shares Outstanding 9,016,026 2,990,403 140,053
-------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 13.71 13.70 13.71
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 5,183,106
EXPENSES:
Management fee--Note 3(a) 475,009
Shareholder servicing costs--Note 3(c) 289,506
Distribution fees--Note 3(b) 120,882
Professional fees 28,125
Registration fees 19,217
Prospectus and shareholders' reports 8,659
Trustees' fees and expenses--Note 3(d) 8,619
Custodian fees 5,315
Loan commitment fees--Note 2 1,589
Miscellaneous 9,925
TOTAL EXPENSES 966,846
INVESTMENT INCOME--NET 4,216,260
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (990,117)
Net unrealized appreciation (depreciation) on investments (1,781,046)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (2,771,163)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,445,097
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
May 31, 2000 Year Ended
(Unaudited) November 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 4,216,260 9,230,614
Net realized gain (loss) on investments (990,117) 583,137
Net unrealized appreciation (depreciation)
on investments (1,781,046) (18,753,308)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,445,097 (8,939,557)
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (3,153,318) (6,235,168)
Class B shares (1,014,633) (2,924,197)
Class C shares (48,309) (71,249)
Net realized gain on investments:
Class A shares (815,622) (919,763)
Class B shares (312,580) (571,971)
Class C shares (15,884) (10,930)
TOTAL DIVIDENDS (5,360,346) (10,733,278)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 15,694,255 48,597,830
Class B shares 2,545,875 8,252,180
Class C shares 103,888 1,799,129
Dividends reinvested:
Class A shares 2,703,926 4,735,809
Class B shares 904,076 2,498,038
Class C shares 45,651 56,463
Cost of shares redeemed:
Class A shares (21,010,828) (45,871,004)
Class B shares (13,204,196) (35,793,080)
Class C shares (719,174) (730,594)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (12,936,527) (16,455,229)
TOTAL INCREASE (DECREASE) IN NET ASSETS (16,851,776) (36,128,064)
-------------------------------------------------------------------------------
Beginning of Period 183,328,411 219,456,475
END OF PERIOD 166,476,635 183,328,411
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (continued)
Six Months Ended
May 31, 2000 Year Ended
(Unaudited) November 30, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(A)
Shares sold 1,142,119 3,286,613
Shares issued for dividends reinvested 195,906 319,256
Shares redeemed (1,527,729) (3,112,276)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (189,704) 493,593
--------------------------------------------------------------------------------
CLASS B(A)
Shares sold 184,896 549,951
Shares issued for dividends reinvested 65,500 167,240
Shares redeemed (956,538) (2,426,756)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (706,142) (1,709,565)
--------------------------------------------------------------------------------
CLASS C
Shares sold 7,619 123,939
Shares issued for dividends reinvested 3,304 3,814
Shares redeemed (52,198) (49,318)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (41,275) 78,435
(A) DURING THE PERIOD ENDED MAY 31, 2000, 364,620 CLASS B SHARES REPRESENTING
$5,038,887 WERE AUTOMATICALLY CONVERTED TO 364,729 CLASS A SHARES AND DURING THE
PERIOD ENDED NOVEMBER 30, 1999, 1,535,040 CLASS B SHARES REPRESENTING
$22,638,139 WERE AUTOMATICALLY CONVERTED TO 1,535,479 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
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FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased or (decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Six Months Ended
May 31, 2000 Year Ended November 30,
--------------------------------------------------------------------
CLASS A SHARES (Unaudited) 1999 1998 1997 1996 1995
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PER SHARE DATA ($):
Net asset value,
beginning of period 14.01 15.43 15.22 14.94 14.93 13.01
Investment Operations:
Investment income--net .35 .69 .69 .71 .73 .75
Net realized and unrealized
gain (loss) on investments (.21) (1.31) .45 .35 .01 1.92
Total from Investment Operations .14 (.62) 1.14 1.06 .74 2.67
Distributions:
Dividends from investment
income--net (.35) (.69) (.69) (.71) (.73) (.75)
Dividends from net realized
gain on investments (.09) (.11) (.24) (.07) -- --
Total Distributions (.44) (.80) (.93) (.78) (.73) (.75)
Net asset value, end of period 13.71 14.01 15.43 15.22 14.94 14.93
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TOTAL RETURN (%)(A) 1.93(b) (4.22) 7.74 7.31 5.17 20.93
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .98(b) .93 .93 .92 .92 .94
Ratio of net investment income
to average net assets 5.03(b) 4.65 4.50 4.78 4.99 5.27
Portfolio Turnover Rate 10.53(c) 35.87 34.48 74.84 53.74 74.11
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Net Assets, end of period
($ x 1,000) 123,575 128,995 134,432 128,811 135,413 146,207
(A) EXCLUSIVE OF SALES CHARGE.
(B) ANNUALIZED.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
May 31, 2000 Year Ended November 30,
----------------------------------------------------------------
CLASS B SHARES (Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 14.01 15.43 15.22 14.94 14.93 13.02
Investment Operations:
Investment income--net .31 .61 .61 .63 .65 .67
Net realized and unrealized
gain (loss) on investments (.22) (1.31) .45 .35 .01 1.91
Total from Investment Operations .09 (.70) 1.06 .98 .66 2.58
Distributions:
Dividends from investment
income--net (.31) (.61) (.61) (.63) (.65) (.67)
Dividends from net realized
gain on investments (.09) (.11) (.24) (.07) -- --
Total Distributions (.40) (.72) (.85) (.70) (.65) (.67)
Net asset value, end of period 13.70 14.01 15.43 15.22 14.94 14.93
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TOTAL RETURN (%)(A) 1.28(b) (4.71) 7.20 6.77 4.61 20.20
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets 1.49(b) 1.44 1.44 1.44 1.44 1.46
Ratio of net investment income
to average net assets 4.51(b) 4.11 3.99 4.26 4.45 4.72
Portfolio Turnover Rate 10.53(c) 35.87 34.48 74.84 53.74 74.11
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 40,981 51,792 83,437 80,142 71,392 66,873
A EXCLUSIVE OF SALES CHARGE.
B ANNUALIZED.
C NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
May 31, 2000 Year Ended November 30,
----------------------------------------------------------------
CLASS C SHARES (Unaudited) 1999 1998 1997 1996 1995(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 14.02 15.43 15.23 14.95 14.93 14.61
Investment Operations:
Investment income--net .29 .58 .57 .60 .62 .14
Net realized and unrealized
gain (loss) on investments (.22) (1.30) .44 .35 .02 .32
Total from Investment Operations .07 (.72) 1.01 .95 .64 .46
Distributions:
Dividends from investment
income--net (.29) (.58) (.57) (.60) (.62) (.14)
Dividends from net realized
gain on investments (.09) (.11) (.24) (.07) -- --
Total Distributions (.38) (.69) (.81) (.67) (.62) (.14)
Net asset value, end of period 13.71 14.02 15.43 15.23 14.95 14.93
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 1.04(c) (4.86) 6.87 6.50 4.43 14.19(c)
------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets 1.75(c) 1.66 1.62 1.69 1.59 1.74(c)
Ratio of net investment income
to average net assets 4.28(c) 3.91 3.63 4.08 3.98 4.00(c)
Portfolio Turnover Rate 10.53(d) 35.87 34.48 74.84 53.74 74.11
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 1,920 2,542 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.
</TABLE>
The Fund
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., which is a wholly-owned
subsidiary of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares, which
are sold to the public without a sales charge. Prior to March 22, 2000, Premier
Mutual Fund Services, Inc. was the distributor. 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 redeemed within one year of purchase. Class B shares
automatically convert to Class A shares after six years. 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 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.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(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 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 $500 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 borrowings. During the period ended May
31, 2000, 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.
DSC, a wholly-owned subsidiary of the Manager, retained $430 during the period
ended May 31, 2000 from commissions earned on sales of the fund's shares.
(B) Under the Distribution Plan (the "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, 2000, Class B and
Class C shares were charged $112,426 and $8,456, respectively, pursuant to the
Plan, of which $53,712 and $3,813 for Class B and Class C shares, respectively,
were paid to DSC.
(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 Series 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, 2000, Class A, Class B and Class C
shares were charged $156,881, $56,213 and $2,819, respectively, pursuant to the
Shareholder Services Plan, of which $78,372, $26,856 and $1,271 for Class A,
Class B and Class C shares, respectively, were paid to DSC.
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, 2000, the fund was charged $47,399 pursuant to the transfer agency
agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 13, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $50,000 and a The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
fee of $6,500 for each meeting attended in person and $500 for telephone
meetings. These fees are allocated among the funds in the Fund Group. The
Chairman of the Board receives an additional 25% of such compensation. Prior to
April 13, 2000, each Board member who was not an "affiliated person" as defined
in the Act received from the fund an annual fee of $2,500 and an attendance fee
of $250 per meeting. The Chairman of the Board received an additional 25% of
such compensation. Subject to the fund's Director Emeritus Program Guidelines,
Emeritus Board members, if any, receive 50% of the fund's annual retainer fee
and per meeting fee paid at the time the Board member achieved emeritus status.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended May 31, 2000, amounted to
$17,894,330 and $32,554,496 respectively.
At May 31, 2000, accumulated net unrealized depreciation on investments was
$3,346,405, consisting of $1,775,625 gross unrealized appreciation and
$5,122,030 gross unrealized depreciation.
At May 31, 2000, 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).
NOTES
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
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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) 2000 Dreyfus Service Corporation 021SA005
