Dreyfus Premier
New York Municipal
Bond Fund
ANNUAL REPORT November 30, 1999
(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
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. 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.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
13 Statement of Assets and Liabilities
14 Statement of Operations
15 Statement of Changes in Net Assets
17 Financial Highlights
20 Notes to Financial Statements
25 Report of Independent Auditors
26 Important Tax Information
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 annual report for Dreyfus Premier New York
Municipal Bond Fund, covering the 12-month period from December 1, 1998 through
November 30, 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.
The past year has been challenging for municipal bond investors. Soon after 1999
began, evidence emerged that the U.S. economy was growing more strongly than
many analysts expected. Concerns that inflationary pressures might re-emerge in
a strong economy caused the Federal Reserve Board to raise short-term interest
rates three times during the summer and fall of 1999. Higher interest rates
generally led to erosion of municipal bond prices, especially toward the end of
the reporting period.
Municipal bonds were also generally adversely affected by supply-and-demand
considerations. Recently, however, these technical influences have caused the
yields of tax-exempt bonds to rise to very attractive levels compared to the
after-tax yields of taxable bonds of comparable maturity and credit quality.
This is especially true for investors in the higher federal income tax brackets
We appreciate your confidence over the past year, 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
December 15, 1999
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus Premier New York Municipal Bond Fund perform?
For the one-year period ended November 30, 1999, Dreyfus Premier New York
Municipal Bond Fund's Class A shares achieved a -4.22% total return, its Class B
shares provided a -4.71% total return and its Class C shares provided a -4.86%
return.(1) In comparison, the fund's peer group, as measured by the Lipper New
York Municipal Debt Funds Category Average, the Lipper category in which the
fund is reported, achieved a -3.76% total return for the same period.(2)
We attribute the fund' s negative return over the past year to a declining
municipal bond market and a rising interest-rate environment. The fund's
underperformance relative to its peer group is primarily the result of our
security selection strategy, which was designed to enhance the portfolio's
credit quality while positioning the fund for the future by taking advantage of
higher yields as they became available in a rising interest-rate environment.
However, a few of the fund' s holdings, such as housing and health care
underperformed as rates continued to move to higher levels.
What is the fund's investment approach?
The fund' s objective is to seek as high a level of federal and New York
tax-exempt income as is practical from a diversified portfolio of municipal
bonds from New York issuers. We also seek to maximize total return.
To achieve these objectives, 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.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the portfolio's performance?
The portfolio' s performance was adversely affected by rising interest rates.
When the reporting period began on December 1, 1998, investors were concerned
about the potentially adverse economic effects of the global currency and credit
crisis. In response, the Federal Reserve Board reduced short-term interest rates
last fall in an attempt to stimulate global economic growth. Its strategy
apparently was effective, because overseas economies began to recover early in
1999, and the growth of the U.S. economy was stronger than most analysts
expected. Municipal bond yields and prices stabilized in this environment.
In the second and third quarters of 1999, however, strong economic growth in
both domestic and overseas markets raised concerns among fixed-income investors
that inflationary pressures might re-emerge. In response, the Federal Reserve
Board increased short-term interest rates three times during the summer and fall
of 1999 in an attempt to forestall inflationary pressures. This change in
monetary policy caused prices of most bonds to fall.
Municipal bond prices fell substantially for this reason and because of
differing supply-and-demand influences. For a variety of reasons, institutional
investors such as insurance companies and hedge funds participated less in the
tax-exempt market over the past year, which reduced overall demand and drove
municipal bond prices down significantly. One result has been that municipal
bonds -- including those from New York issuers -- are currently offering
tax-exempt yields that compare very favorably with taxable yields after
adjusting for taxes. Of course, this yield increase comes at the cost of having
achieved a negative total return.
What is the portfolio's current strategy?
The effects of the Federal Reserve rate hikes will take time to work through the
economy and cause the desired slowdown. Since the interest-rate environment
still remains uncertain, more of the investment focus has been on
current-to-cushion coupons, particularly in
the 20-year sector. Since the insurance premiums on municipal bonds remain very
affordable, we have opted to insure some lesser credits, thereby enhancing the
liquidity of the fund.(3)
In addition, we took advantage of opportunities to add a limited position of
bonds that, in our opinion, were punished more severely than circumstances
warranted during the reporting period. Some bonds selling at a discount to their
face values were particularly attractively priced, providing the potential to
produce capital appreciation when interest rates decline from prevailing levels.
The current interest-rate environment also provides the opportunity to
re-evaluate our holdings from a credit viewpoint. As often happens during market
downturns, the ability to trade into stronger bonds may present itself. We have
also maintained a cash reserve to take advantage of new opportunities if, as we
expect, year-end and Y2K-related concerns temporarily produce attractive values
in the municipal bond market.
December 15, 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, 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 INCOME 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.
(3) "INSURANCE" EXTENDS TO THE ABILITY TO PAY INTEREST AND PRINCIPAL ON A
DEFAULTED PORTFOLIO SECURITY. PORTFOLIO INSURANCE DOES NOT EXTEND TO THE MARKET
VALUE OF PORTFOLIO SECURITIES OR TO THE FUND'S SHARES.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier New York
Municipal Bond Fund Class A shares and the Lehman Brothers Municipal Bond Index
(+) SOURCE: BLOOMBERG L.P.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS A SHARES OF DREYFUS
PREMIER NEW YORK MUNICIPAL BOND FUND ON 11/30/89 TO A $10,000 INVESTMENT MADE IN
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL
GAIN DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS B AND CLASS C SHARES
WILL VARY FROM THE PERFORMANCE OF CLASS A SHARES SHOWN ABOVE DUE TO DIFFERENCES
IN CHARGES AND EXPENSES.
THE FUND INVESTS PRIMARILY IN NEW YORK MUNICIPAL SECURITIES AND ITS PERFORMANCE
SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM INITIAL SALES CHARGE ON
CLASS A SHARES AND ALL OTHER APPLICABLE FEES AND EXPENSES. THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX IS NOT LIMITED TO INVESTMENTS PRINCIPALLY IN NEW YORK
MUNICIPAL OBLIGATIONS AND DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER
EXPENSES. THE LEHMAN BROTHERS MUNICIPAL BOND INDEX, UNLIKE THE FUND, IS AN
UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR THE LONG-TERM, INVESTMENT
GRADE, GEOGRAPHICALLY UNRESTRICTED TAX-EXEMPT BOND MARKET, CALCULATED BY USING
MUNICIPAL BONDS SELECTED TO BE REPRESENTATIVE OF THE MUNICIPAL MARKET OVERALL.
THESE FACTORS CAN CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR
UNDERPERFORMING THE FUND. FURTHER INFORMATION RELATING TO FUND PERFORMANCE,
INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL
HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
Average Annual Total Returns AS OF 11/30/99
<TABLE>
<CAPTION>
Inception From
Date 1 Year 5 Years 10 Years Inception
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
<S> <C> <C> <C> <C> <C>
WITH SALES CHARGE (4.5%) 12/31/86 (8.54)% 6.11% 6.37% --
WITHOUT SALES CHARGE 12/31/86 (4.22)% 7.09% 6.87% --
CLASS B SHARES
WITH REDEMPTION((+)) 1/15/93 (8.34)% 6.21% -- 5.08%
WITHOUT REDEMPTION 1/15/93 (4.71)% 6.52% -- 5.08%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 9/11/95 (5.76)% -- -- 3.72%
WITHOUT REDEMPTION 9/11/95 (4.86)% -- -- 3.72%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
(+) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4% AND
IS REDUCED TO 0% AFTER SIX YEARS, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS
A SHARES.
(+)(+) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
</TABLE>
The Fund
STATEMENT OF INVESTMENTS
November 30, 1999
<TABLE>
<CAPTION>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.3% Amount ($) Value ($)
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NEW YORK--93.1%
Albany Industrial Development Agency:
Lease Revenue:
<S> <C> <C>
(New York State Assembly Building Project)
7.75%, 1/1/2010 1,375,000 1,418,601
(New York State Department of Health
Building Project) 7.25%, 10/1/2010 1,395,000 1,478,644
Civic Facility Revenue (Sage Colleges Project):
5.25%, 4/1/2019 1,140,000 1,018,271
5.30%, 4/1/2029 1,000,000 871,340
Erie County Industrial Development Agency,
Life Care Community Revenue
(Episcopal Church Home) 6%, 2/1/2028 2,250,000 1,945,125
Housing New York Corp., Local or Guaranteed Housing
Revenue 5.50%, 11/1/2010 2,650,000 2,622,042
Huntington Housing Authority, Senior Housing
Facility Revenue (Gurwin Jewish
Senior Residences) 6%, 5/1/2029 1,370,000 1,257,181
Metropolitan Transportation Authority:
Commuter Facilities Revenue
5.70%, 7/1/2017 (Insured; MBIA) 5,895,000 5,833,397
Transit Facilities Revenue:
6.379% 7/1/2014 2,000,000 (a) 1,806,360
6%, 7/1/2016 (Insured; FSA) 3,000,000 3,067,410
5.375%, 7/1/2021 2,000,000 1,819,360
Nassau County Health Care Corp., Health System Revenue
5.75%, 8/1/2029
(Guaranteed; County of Nassau , Insured; FSA) 2,000,000 1,934,940
Newburg Industrial Development Agency, IDR
(Bourne and Kenney Redevelopment Co.) :
5.65%, 8/1/2020 (Guaranteed; SONYMA) 830,000 772,298
5.75%, 8/1/2032 (Guaranteed; SONYMA) 1,000,000 924,470
New York City:
6.75%, 2/1/2009 2,000,000 2,209,040
6%, 8/1/2017 3,000,000 3,016,080
6.625%, 8/1/2025 4,095,000 4,339,308
6.625%, 8/1/2025 (Prerefunded 8/1/2005) 995,000 (b) 1,095,097
New York City Housing Development Corp., MFHR
5.625%, 5/1/2012 1,415,000 1,409,920
New York City Industrial Development Agency:
Civic Facility Revenue:
Lease Revenue, (College of Aeronautics Project)
5.45%, 5/1/2018 1,000,000 910,700
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York City Industrial Development Agency (continued):
Civic Facility Revenue (continued):
(YMCA of Greater New York Project)
5.80%, 8/1/2016 1,000,000 969,290
IDR (Laguardia Association LP Project) 6%, 11/1/2028 2,750,000 2,540,038
Special Facility Revenue:
(American Airlines Inc. Project)
6.90%, 8/1/2024 2,000,000 2,083,040
(Terminal One Group Association Project)
6%, 1/1/2019 3,000,000 2,961,270
New York City Municipal Water Finance Authority,
Water and Sewer Systems Revenue:
5.50%, 6/15/2023 2,000,000 1,866,380
5%, 6/15/2029 (Insured; FSA) 2,500,000 2,145,200
5.75%, 6/15/2031 (Insured; FGIC) 2,000,000 1,931,700
New York City Transitional Finance Authority, Revenue
5%, 5/1/2029 3,000,000 2,567,520
New York State Dormitory Authority, Revenues:
4201 Schools Program 5%, 7/1/2018 1,400,000 1,218,154
(Consolidated City University System):
5.35%, 7/1/2009 (Insured; FGIC) 1,500,000 1,527,510
5.75%, 7/1/2009 (Insured; AMBAC) 3,000,000 3,140,460
5.50%, 7/1/2016 (Insured; AMBAC) 2,200,000 2,156,550
5.625%, 7/1/2016 4,000,000 3,940,480
Health Hospital and Nursing Home:
(Carmel Richmond Nursing Home)
5%, 7/1/2015 (LOC; Allied Irish Bank PLC) 3,515,000 3,124,554
(Department of Health) 5.75%, 7/1/2017 1,000,000 968,260
(Ideal Senior Living Center Housing Corp.)
5.90%, 8/1/2026 (Insured; MBIA; FHA) 1,000,000 988,650
(Municipal Health Facilities Improvement
Program) 5.50%, 5/15/2024 (Insured; FSA) 1,000,000 939,310
(New York and Presbyterian Hospitals)
4.75%, 8/1/2027 (Insured; FHA, AMBAC) 2,500,000 2,052,875
(North General Hospital)
5.20%, 2/15/2015 (Insured; AMBAC) 2,000,000 1,883,680
State University Educational Facilities:
5.875%, 5/15/2017 2,000,000 2,017,360
4.75%, 5/15/2025 (Insured; MBIA) 1,000,000 831,650
5.50%, 5/15/2026 (Insured; FSA) 5,000,000 4,692,400
New York State Energy Research and Development
Authority, Electric Facilities Revenue
(Consolidated Edison Co. Project) 7.125%, 12/1/2029 5,000,000 5,486,100
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW YORK (CONTINUED)
New York State Environmental Facilities Corp., PCR
(Pilgrim State Sewer Project) 6.30%, 3/15/2016 3,000,000 3,077,010
New York State Housing Finance Agency, Revenue:
Health Facilities (New York City) 6%, 11/1/2007 4,000,000 4,175,040
Housing Project Mortgage
6.10%, 11/1/2015 (Insured; FSA) 1,960,000 1,999,925
Service Contract Obligation:
6.25%, 9/15/2010 3,000,000 3,165,990
5.25%, 9/15/2011 2,000,000 1,939,160
5.50%, 9/15/2018 4,000,000 3,739,720
New York State Medical Care Facilities Finance Agency,
Hospital and Nursing Home FHA Insured Mortgage
Revenue 6.05%, 2/15/2015 3,000,000 3,048,930
New York State Mortgage Agency, Homeownership
Mortgage Revenue:
6%, 4/1/2017 2,000,000 2,011,160
5.95%, 4/1/2030 2,000,000 1,939,780
New York State Thruway Authority, Service Contract
Revenue (Local Highway and Bridge):
6%, 4/1/2011 5,000,000 5,178,350
5.75%, 4/1/2016 3,000,000 2,936,040
5.75%, 4/1/2019 2,000,000 1,922,060
New York State Urban Development Corp., Revenue,
Correctional Capital Facilities:
6.10%, 1/1/2011 4,000,000 4,142,600
6.50%, 1/1/2011 (Insured; FSA) 3,190,000 3,534,488
5.375%, 1/1/2015 2,850,000 2,697,639
5.70%, 1/1/2016 9,350,000 9,067,256
Niagara Frontier Transportation Authority, Airport Revenue
(Buffalo Niagara International Airport)
5.625%, 4/1/2029 (Insured; MBIA) 2,000,000 1,866,940
Orange County Industrial Development Agency,
Life Care Community Revenue
(Glen Arden Inc. Project) 5.625%, 1/1/2018 1,000,000 860,100
Port Authority of New York and New Jersey, Special
Obligation Revenue (JFK International Airport)
5.75%, 12/1/2025 (Insured; MBIA) 4,025,000 3,921,759
Rensselaer County Industrial Development Agency, IDR
(Albany International Corp.)
7.55%, 6/1/2007 (LOC; Norstar Bank) 1,500,000 1,695,225
Scotia Housing Authority, Housing Revenue
(Coburg Village Inc. Project) 6.15%, 7/1/2028 3,000,000 2,646,390
Triborough Bridge and Tunnel Authority, Revenue:
General Purpose 5.50%, 1/1/2030 2,000,000 1,854,820
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
Triborough Bridge and Tunnel Authority, Revenue (continued):
Highway and Toll 6%, 1/1/2012 2,000,000 2,124,580
Lease (Convention Center Project)
7.25%, 1/1/2010 1,000,000 1,118,730
TSASC, Inc., Tobacco Flexible Amortization Bonds
6.375%, 7/15/2039 4,000,000 3,923,760
Ulster County Industrial Development Agency, Civic Facility
Revenue (Benedictine Hospital Project) 6.40%, 6/1/2014 730,000 694,062
Watervliet Housing Authority, Residential Housing
Revenue (Beltrone Living Center Project) 6%, 6/1/2028 1,000,000 927,950
Yonkers 5.50%, 9/1/2012 (Insured; FGIC) 1,235,000 1,241,830
Yonkers Industrial Development Agency, Civic Facility
Revenue (Saint Joseph's Hospital) 5.90%, 3/1/2008 1,700,000 1,607,180
U.S. RELATED--5.2%
Guam Airport Authority, Airport Revenue 6.70%, 10/1/2023 2,000,000 2,081,220
Commonwealth of Puerto Rico
5.50%, 7/1/2011 1,500,000 1,532,820
Puerto Rico Highway and Transportation Authority,
Transportation Revenue
6%, 7/1/2038 (Insured; MBIA) 2,500,000 (a) 1,768,000
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) 1,182,984
Virgin Islands Public Finance Authority, Revenue
5.50%, 10/1/2014 3,000,000 2,932,860
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $181,903,732) 180,338,373
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SHORT-TERM MUNICIPAL INVESTMENTS--.1%
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK;
Port Authority of New York and New Jersey,
Special Obligation Revenue, VRDN
(Versatile Structure Obligation)
3.85% (SBPA; Bank of Nova Scotia)
(cost $100,000) 100,000 (c) 100,000
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TOTAL INVESTMENTS
(cost $182,003,732) 98.4% 180,438,373
CASH AND RECEIVABLES (NET) 1.6% 2,890,038
NET ASSETS 100.0% 183,328,411
</TABLE>
<TABLE>
<CAPTION>
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond MBIA Municipal Bond Investors Assurance
Assurance Corporation Insurance Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
FSA Financial Security Assurance SBPA Standby Bond Purchase Agreement
HR Hospital Revenue SONYMA State of New York Mortgage
IDR Industrial Development Revenue Association
LOC Letter of Credit VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 28.0
AA Aa AA 14.6
A A A 38.3
BBB Baa BBB 9.5
F1 Mig 1 SP1 .1
Not Rated(d) Not Rated(d) Not Rated(d) 9.5
100.0
A INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE PERIODICALLY.
B BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT SECURITIES
WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST ON THE
MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING DATE.
C SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
D SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S HAVE
BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 182,003,732 180,438,373
Interest receivable 3,289,632
Receivable for shares of Beneficial Interest subscribed 67,526
Prepaid expenses 21,594
183,817,125
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 84,077
Due to Distributor 61,242
Cash overdraft due to Custodian 13,931
Payable for shares of Beneficial Interest redeemed 256,445
Accrued expenses 73,019
488,714
- --------------------------------------------------------------------------------
NET ASSETS ($) 183,328,411
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 184,314,503
Accumulated net realized gain (loss) on investments 579,267
Accumulated net unrealized appreciation
(depreciation) on investments--Note 4 (1,565,359)
- --------------------------------------------------------------------------------
NET ASSETS ($) 183,328,411
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class C
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NET ASSETS ($) 128,995,305 51,791,598 2,541,508
Shares Outstanding 9,205,730 3,696,545 181,328
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 14.01 14.01 14.02
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Year Ended November 30, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 11,536,543
EXPENSES:
Management fee--Note 3(a) 1,137,993
Shareholder servicing costs--Note 3(c) 659,964
Distribution fees--Note 3(b) 369,030
Professional fees 39,203
Registration fees 27,581
Custodian fees 21,722
Prospectus and shareholders' reports 18,268
Trustees' fees and expenses--Note 3(d) 15,365
Loan commitment fees--Note 2 913
Miscellaneous 15,890
TOTAL EXPENSES 2,305,929
INVESTMENT INCOME-NET 9,230,614
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4($):
Net realized gain (loss) on investments 583,137
Net unrealized appreciation (depreciation) on investments (18,753,308)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (18,170,171)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (8,939,557)
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
November 30, 1999 November 30, 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 9,230,614 9,190,186
Net realized gain (loss) on investments 583,137 1,521,217
Net unrealized appreciation (depreciation)
on investments (18,753,308) 4,753,371
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (8,939,557) 15,464,774
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (6,235,168) (5,915,440)
Class B shares (2,924,197) (3,251,012)
Class C shares (71,249) (23,734)
Net realized gain on investments:
Class A shares (919,763) (2,048,335)
Class B shares (571,971) (1,272,846)
Class C shares (10,930) (1,346)
TOTAL DIVIDENDS (10,733,278) (12,512,713)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 48,597,830 19,664,934
Class B shares 8,252,180 10,637,510
Class C shares 1,799,129 1,510,679
Dividends reinvested:
Class A shares 4,735,809 5,357,995
Class B shares 2,498,038 3,412,975
Class C shares 56,463 15,935
Cost of shares redeemed:
Class A shares (45,871,004) (21,240,900)
Class B shares (35,793,080) (11,853,475)
Class C shares (730,594) (40,780)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (16,455,229) 7,464,873
TOTAL INCREASE (DECREASE) IN NET ASSETS (36,128,064) 10,416,934
- --------------------------------------------------------------------------------
Beginning of Period 219,456,475 209,039,541
END OF PERIOD 183,328,411 219,456,475
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended November 30,
---------------------------------
1999 1998
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A (A)
Shares sold 3,286,613 1,288,205
Shares issued for dividends reinvested 319,256 352,193
Shares redeemed (3,112,276) (1,391,194)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 493,593 249,204
- --------------------------------------------------------------------------------
CLASS B (A)
Shares sold 549,951 696,007
Shares issued for dividends reinvested 167,240 224,370
Shares redeemed (2,426,756) (778,462)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,709,565) 141,915
- --------------------------------------------------------------------------------
CLASS C
Shares sold 123,939 98,801
Shares issued for dividends reinvested 3,814 1,038
Shares redeemed (49,318) (2,665)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 78,435 97,174
(A) DURING THE PERIOD ENDED NOVEMBER 30, 1999, 1,535,040 CLASS B SHARES
REPRESENTING $22,638,139 WERE AUTOMATICALLY CONVERTED TO 1,535,479 CLASS A
SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased or (decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
<TABLE>
<CAPTION>
Year Ended November 30,
-------------------------------------------------------------------
CLASS A SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 15.43 15.22 14.94 14.93 13.01
Investment Operations:
Investment income-net .69 .69 .71 .73 .75
Net realized and unrealized gain (loss)
on investments (1.31) .45 .35 .01 1.92
Total from Investment Operations (.62) 1.14 1.06 .74 2.67
Distributions:
Dividends from investment income-net (.69) (.69) (.71) (.73) (.75)
Dividends from net realized gain
on investments (.11) (.24) (.07) - -
Total Distributions (.80) (.93) (.78) (.73) (.75)
Net asset value, end of period 14.01 15.43 15.22 14.94 14.93
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (A) (4.22) 7.74 7.31 5.17 20.93
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .93 .93 .92 .92 .94
Ratio of net investment income
to average net assets 4.65 4.50 4.78 4.99 5.27
Portfolio Turnover Rate 35.87 34.48 74.84 53.74 74.11
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 128,995 134,432 128,811 135,413 146,207
(A) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Year Ended November 30,
-------------------------------------------------------------------
CLASS B SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 15.43 15.22 14.94 14.93 13.02
Investment Operations:
Investment income-net .61 .61 .63 .65 .67
Net realized and unrealized gain (loss)
on investments (1.31) .45 .35 .01 1.91
Total from Investment Operations (.70) 1.06 .98 .66 2.58
Distributions:
Dividends from investment income-net (.61) (.61) (.63) (.65) (.67)
Dividends from net realized gain
on investments (.11) (.24) (.07) - -
Total Distributions (.72) (.85) (.70) (.65) (.67)
Net asset value, end of period 14.01 15.43 15.22 14.94 14.93
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (A) (4.71) 7.20 6.77 4.61 20.20
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.44 1.44 1.44 1.44 1.46
Ratio of net investment income
to average net assets 4.11 3.99 4.26 4.45 4.72
Portfolio Turnover Rate 35.87 34.48 74.84 53.74 74.11
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 51,792 83,437 80,142 71,392 66,873
(A) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Year Ended November 30,
-------------------------------------------------------------------
CLASS C SHARES 1999 1998 1997 1996 1995(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 15.43 15.23 14.95 14.93 14.61
Investment Operations:
Investment income-net .58 .57 .60 .62 .14
Net realized and unrealized gain (loss)
on investments (1.30) .44 .35 .02 .32
Total from Investment Operations (.72) 1.01 .95 .64 .46
Distributions:
Dividends from investment income-net (.58) (.57) (.60) (.62) (.14)
Dividends from net realized gain
on investments (.11) (.24) (.07) -- --
Total Distributions (.69) (.81) (.67) (.62) (.14)
Net asset value, end of period 14.02 15.43 15.23 14.95 14.93
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (B) (4.86) 6.87 6.50 4.43 14.19(c)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.66 1.62 1.69 1.59 1.74(c)
Ratio of net investment income
to average net assets 3.91 3.63 4.08 3.98 4.00(c)
Portfolio Turnover Rate 35.87 34.48 74.84 53.74 74.11
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
NOTES TO FINANCIAL STATEMENTS
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.
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 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
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 Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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
November 30, 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
$2,068 during the period ended November 30, 1999 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 November 30, 1999, Class B and Class C shares were charged
$355,353 and $13,677, respectively, pursuant to the Plan.
(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 November 30, 1999, Class A, Class B and Class C
shares were charged $335,034, $177,677 and $4,559, 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 November 30, 1999, the fund was charged $101,789 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 November 30, 1999, amounted to
$73,150,453 and $87,154,791 respectively.
At November 30, 1999, accumulated net unrealized depreciation on investments was
$1,565,359, consisting of $3,393,819 gross unrealized appreciation and
$4,959,178 gross unrealized depreciation.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At November 30, 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).
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus Premier New York Municipal Bond Fund
We have audited the accompanying statement of assets and liabilities of Dreyfus
Premier New York Municipal Bond Fund, including the statement of investments, as
of November 30, 1999, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended and financial highlights for each of the years indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of November 30, 1999 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier New York Municipal Bond Fund at November 30, 1999, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights for
each of the indicated years, in conformity with generally accepted accounting
principles.
New York, New York
January 4, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund hereby makes the following
designations regarding its fiscal year ended November 30, 1999:
-- all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular Federal income tax and, for individuals
who are New York residents, New York State and New York City personal income
taxes), and
-- the fund hereby designates $.0520 per share as a long-term capital gain
distribution of the $.1055 per share paid on December 9, 1998 and also
designates $.0001 per share as a long-term capital gain distribution of the
$.0002 per share paid on July 15, 1999.
As required by Federal tax law rules, shareholders will receive notification of
their portion of the fund' s taxable ordinary dividends and capital gain
distributions paid for the 1999 calendar year on Form 1099-DIV which will be
mailed by January 31, 2000.
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
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) 2000 Dreyfus Service Corporation 021AR9911
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PREMIER NEW YORK MUNICIPAL BOND FUND CLASS A
SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
DREYFUS PREMIER
NEW YORK
PERIOD LEHMAN BROTHERS MUNICIPAL
MUNICIPAL BOND FUND
BOND INDEX * (CLASS A SHARES)
11/30/89 10,000 9,547
11/30/90 10,770 10,113
11/30/91 11,875 11,390
11/30/92 13,066 12,619
11/30/93 14,514 14,279
11/30/94 13,752 13,171
11/30/95 16,351 15,929
11/30/96 17,312 16,751
11/30/97 18,553 17,977
11/30/98 19,993 19,368
11/30/99 19,778 18,552
*Source: Bloomberg L.P.
