LETTER TO SHAREHOLDERS
Dear Shareholder:
As your Fund's annual reporting period ended on April 30, 1995, the net
asset value per share for both Class A and Class B shares was $13.86. Income
dividends of approximately $.839 per share were paid during the period, for
Class A shares, representing a distribution rate per share of 5.78% based on
the April 30 closing maximum offering price. Class B shares paid income
dividends of approximately $.766 per share, equating to a 5.53% distribution
rate per share based on the April 30 closing net asset value. We are pleased
to inform you that all dividends paid from net investment income were fully
exempt from Federal personal income taxes.*
The last six months have seen a dramatic change in the behavior of bond
market prices. Last November marked the bottom of a severe downtrend. The
bellwether 30-year Treasury bond reached a high yield of 8.16% on November 7,
after reaching yields as low as 6.17% in January of 1994. These yield
adjustments were caused by a series of rate hikes by the Federal Reserve
Board. The Fed took these measures to subdue an economy that seemed to be
growing at an inflationary pace. As 1994 drew to a close, the bond market
continued to exhibit volatility. Economic indicators showed the overall
capacity utilization rate at 85.4%, a 15-year high, and consumer confidence
near its five-year high. Both represented strong signs of growth to which the
bond market reacted adversely.
However, during the first quarter of 1995 signs of a slowdown started to
take hold as the effect of higher interest rates set in. Existing home sales,
new construction and auto sales weakened. More important, jobless claims rose
along with inventories, indicating slowing sales. Many forecasters started to
revise their expectations for economic growth, and a solid market rally took
hold as the threat of inflation began to subside. By the end of the first
calendar quarter of 1995, both the bond market and your Series had regained
much of the ground lost in 1994. Since then, the first quarter Gross Domestic
Product (GDP) report of 2.8% showed a significant drop from the fourth
quarter level of 5.1%, and April nonfarm employment declined by 9,000
workers, which clearly turned some bond market skeptics into believers. This
follow-through has seen the 30-year U.S. Treasury Bond dip below the 7% yield
level to 6.90% as of May 16. There is now speculation in some market sectors
about a possible Federal Reserve lowering of interest rates to avoid
recession. Countering this theory are those who claim that these new lower
interest-rate levels could actually stimulate the economy during the second
half of 1995.
The unexpected municipal market turnaround was largely fueled by a
shortage of securities. This technical phenomenon, which exists in the equity
market also, is pronounced in the tax exempt market where new bond issuance
is off nearly 50%, and yields on existing municipals have achieved a
historically rich status relative to Treasuries. Recent municipal bond
trading and spread relations have corrected, a correction that is
attributable mostly to the prospect of a Federal flat tax proposal. Such a
proposal, if passed, could diminish the tax advantage municipal bonds enjoy
by providing more, or total, tax exemption to other investments. A proposal
of this kind is at the embryonic stage, and could go through many changes due
to the political climate. As a result, we expect the final resolution of any
change in our present tax structure to be many months away. The more
immediate concern of investors seems to be the scarce municipal supply that
is expected to continue. Currently, the estimated net supply of municipal
debt in 1995 (estimated new issuance minus bond redemptions and coupon
payments) is a negative $50 billion.
The response of investors to unexpected domestic economic weakness
ultimately supported the bond market and your Fund;
initial mixed signals, however, and continuous doubts about the dollar caused
us to adopt and maintain a cautious market approach with the Fund this year.
This means that the Fund's income orientation was emphasized, which was
accomplished by holding, when possible, bonds that have coupons higher than
what the current market offers. Additionally, any recent portfolio changes
reflected what we believe were the best income opportunities and credit risk
improvements available to us. As a balance to our defensive strategy, some
non-callable bonds were added which have greater sensitivity to market moves.
Our efforts to provide more tax-free income and lower volatility diminished,
to some extent, the capital appreciation your Fund might otherwise have been
able to achieve during the market spike in the first quarter of 1995.
We have included a current Statement of Investments and recent financial
statements for your review, and look forward to serving your investment needs
in the future.
Sincerely,
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 17, 1995
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.
PREMIER MUNICIPAL BOND FUND APRIL 30, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER MUNICIPAL BOND
FUND CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
(Exhibit A)
$18,461
Lehman Brothers Municipal Bond
Index*
In Dollars
$17,466
Premier Municipal
Bond Fund
(Class A Shares)
*Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
CLASS A CLASS B
- ------------------------------------------------------------ -------------------------------------------------------------
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Periods ended 4/30/95 Sales Charge Sales Charge (4.5% ) Periods ended 4/30/95 Redemption Redemption*
- ---------------------- ---------------- ---------------------- ----------------------- ------------ ----------------------
<S> <C> <C> <C> <C> <C>
1 Year 6.72% 1.92% 1 Year 6.15% 3.15%
5 Years 9.02 8.02 From Inception (1/15/93) 5.34 4.53
From Inception (11/26/86) 7.43 6.84
</TABLE>
Past performance is not predictive of future performance. Share price and
investment return fluctuate and share price may be more or less than original
cost upon redemption.
The above graph compares a $10,000 investment made in Class A shares of
Premier Municipal Bond Fund on 11/26/86 (Inception Date) to a $10,000
investment made in the Lehman Brothers Municipal Bond Index on that date. For
comparative purposes, the value of the Index on 11/30/86 is used as the
beginning value on 11/26/86. All dividends and capital gain distributions are
reinvested. Performance for Class B shares will differ from the results shown
above due to difference in charges and expenses charged to that class.
The Fund invests primarily in 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. Unlike the Fund,
the Lehman Brothers Municipal Bond Index is an unmanaged total return
performance benchmark for the long-term, investment grade tax exempt bond
market, calculated by using municipal bonds selected to be representative of
the market. The Index does not take into account charges, fees and other
expenses. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Condensed Financial
Information section of the Prospectus and elsewhere in this report.
*Maximum contingent deferred sales charge for Class B shares is 3% and is
reduced to 0% after five years.
<TABLE>
<CAPTION>
PREMIER MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-99.7% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
ALABAMA-1.0%
Courtland Industrial Development Board, SWDR
(Champion International Corp. Project) 6.375%, 3/1/2029................. $ 6,000,000 $ 5,739,540
ARIZONA-.5%
Tucson Airport Authority, Special Facility Revenue
(Lockheed Aermod Center, Inc.) 8.70%, 9/1/2019.......................... 2,500,000 2,815,000
COLORADO-9.8%
Dawson Ridge, Metropolitan District Number 1, Refunding:
Zero Coupon, 10/1/2017.................................................. 9,930,000 2,145,674
Zero Coupon, 10/1/2022.................................................. 47,535,000 7,298,999
Denver City and County, Airport Revenue:
7.75%, 11/15/2021....................................................... 8,000,000 8,370,160
7.25%, 11/15/2023....................................................... 10,000,000 10,026,700
7.50%, 11/15/2023....................................................... 11,775,000 12,113,178
7%, 11/15/2025.......................................................... 18,225,000 17,820,041
CONNECTICUT-2.0%
Connecticut Development Authority, First Mortgage Gross Revenue
(Elim Park Baptist Home, Inc. Project) 9%, 12/1/2020.................... 3,000,000 3,157,410
Connecticut Housing Finance Authority (Housing Mortgage Finance Program)
6.70%, 11/15/2022....................................................... 8,500,000 8,710,120
FLORIDA-2.3%
Palm Beach County, Solid Waste IDR:
(Okeelanta Power LP Project) 6.85%, 2/15/2021........................... 6,750,000 6,420,802
(Osceola Power LP) 6.95%, 1/1/2022...................................... 7,500,000 7,192,425
GEORGIA-2.1%
Atlanta, Airport Facilities Revenue, Refunding 7.25%, 1/1/2017.............. 5,000,000 5,345,300
Georgia Municipal Electric Authority, Power Revenue, Refunding
5.50%, 1/1/2020 (Insured; FGIC) (a)..................................... 4,250,000 3,936,648
Hogansville, Combined Public Utility System Revenue, Refunding
(Asset Guaranty) 6%, 10/1/2023.......................................... 3,475,000 3,255,102
ILLINOIS-12.4%
Chicago, Skyway Toll Bridge Revenue, Refunding 6.75%, 1/1/2017.............. 5,425,000 5,387,676
Chicago O'Hare International Airport, Special Facility Revenue:
(American Airlines, Inc. Project) 7.875%, 11/1/2025..................... 6,000,000 6,258,120
(United Airlines, Inc.):
8.20%, 5/1/2018....................................................... 2,165,000 2,316,290
8.50%, 5/1/2018....................................................... 3,500,000 3,751,300
East Chicago, PCR, Refunding (Inland Steel Co. Project Number 10) 6.80%, 6/1/2013 9,000,000 8,682,210
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers Facility):
8.75%, 3/1/2010....................................................... 6,990,000 7,362,008
8.50%, 9/1/2010....................................................... 4,535,000 4,737,352
8.25%, 8/1/2012....................................................... 4,280,000 4,373,389
PREMIER MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
ILLINOIS (CONTINUED)
Illinois Health Facilities Authority, Revenue:
(Beverly Farm Foundation) 9.125%, 12/15/2015............................ $ 2,000,000 $ 2,144,300
(Delnor Community Hospital Project) 8%, 5/15/2019 (Prerefunded 5/15/1999) (b) 5,500,000 6,209,280
Robbins, RRR (Robbins Resource Recovery Partners):
9.25%, 10/15/2014....................................................... 10,000,000 10,801,100
9.25%, 10/15/2016....................................................... 10,000,000 10,801,100
INDIANA-1.3%
Indianapolis Airport Authority, Special Facilities Revenue
(Federal Express Corp. Project) 7.10%, 1/15/2017........................ 7,500,000 7,679,325
KENTUCKY-.6%
Perry County, SWDR (TJ International Project) 7%, 6/1/2024.................. 3,500,000 3,435,740
LOUISIANA-4.4%
Lake Charles Non-Profit Housing Development Corp., First Mortgage Revenue,
Refunding (Chateau Project) 7.875%, 2/15/2025 (Insured; FHA)............ 1,000,000 1,004,280
Louisiana Housing Finance Agency, MFHR, Refunding
(LaBelle Projects-A) 9.75%, 10/1/2020 (c)............................... 4,300,000 4,291,314
Louisiana Public Facilities Authority, Revenue (Student Loan) 7%, 9/1/2006.. 3,000,000 3,111,930
Parish of West Feliciana, PCR:
(Gulf States Utilities - II) 7.70%, 12/1/2014........................... 10,000,000 10,390,100
(Gulf States Utilities - III) 7.70%, 12/1/2014.......................... 6,500,000 6,753,565
MARYLAND-.4%
Maryland Community Development Administration, Department of Housing and
Community Development (Single Family Program) 7.70%, 4/1/2015........... 2,075,000 2,198,732
MASSACHUSETTS-1.1%
Massachusetts Housing Finance Agency, SFHR 7.95%, 6/1/2023.................. 2,000,000 2,125,860
New England Education Loan Marketing Corp., Student Loan Revenue
6.90%, 11/1/2009........................................................ 4,000,000 4,118,440
MICHIGAN-2.7%
Greater Detroit Resources Recovery Authority, Revenue:
9.25%, Series A, 12/13/2008............................................. 8,440,000 8,876,686
9.25%, Series D, 12/13/2008............................................. 250,000 262,935
9.25%, Series E, 12/13/2008............................................. 1,000,000 1,051,740
9.25%, Series H, 12/13/2008............................................. 2,045,000 2,150,808
Wayne County Building Authority 8%, 3/1/2017 (Prerefunded 3/1/2002) (b)..... 1,500,000 1,759,200
Western Townships Utilities Authority, Sewer Disposal System
(Limited Tax) 8.20%, 1/1/2018........................................... 1,500,000 1,673,445
NEBRASKA-.8%
Nebraska Higher Education Loan Program, Revenue 6.40%, 6/1/2013............. 5,000,000 4,910,400
NEVADA-2.3%
Clark County, IDR (Southwest Gas Corp.) 7.50%, 9/1/2032..................... 13,000,000 13,286,520
NEW HAMPSHIRE-.6%
New Hampshire Housing Finance Authority, Single Family Residential Mortgage
7.70%, 7/1/2029......................................................... 3,620,000 3,760,528
PREMIER MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW JERSEY-7.2%
Camden County Pollution Control Financing Authority, Solid Waste RRR
7.50%, 12/1/2010........................................................ $ 2,000,000 $ 1,940,940
New Jersey Economic Development Authority, First Mortgage Gross Revenue
(The Evergreens) 9.25%, 10/1/2022....................................... 15,000,000 15,717,600
New Jersey Sports and Exposition Authority, Revenue, Refunding
(Monmouth Park) 8%, 1/1/2025............................................ 4,000,000 4,245,920
New Jersey Turnpike Authority, Turnpike Revenue 6.50%, 1/1/2016............. 10,000,000 10,550,100
Union County Utilities Authority, Solid Waste Revenue 7.20%, 6/15/2014...... 9,500,000 9,612,670
NEW MEXICO-.3%
New Mexico Educational Assistance Foundation, Student Loan Revenue
6.85%, 12/1/2005........................................................ 1,730,000 1,766,382
NEW YORK-17.9%
Metropolitan Transportation Authority, Service Contract, Commuter Facilities
7.50%, 7/1/2016 (Prerefunded 7/1/2000) (b).............................. 3,000,000 3,397,650
New York City:
8%, 6/1/2000............................................................ 2,200,000 2,411,574
7.50%, 2/1/2001......................................................... 5,000,000 5,373,650
6%, 5/15/2008........................................................... 8,970,000 8,579,087
7.50%, 8/15/2008........................................................ 2,000,000 2,103,340
7.10%, 2/1/2009......................................................... 5,000,000 5,126,800
7%, 2/1/2020............................................................ 10,000,000 10,194,900
6.625%, 2/15/2025....................................................... 7,000,000 6,878,550
New York City Industrial Development Agency, Special Facilities Revenue
(American Airlines, Inc. Project) 8%, 7/1/2020.......................... 3,250,000 3,414,450
New York City Municipal Water Finance Authority, Water and Sewer Systems
Revenue:
7%, 6/15/2001........................................................... 1,735,000 1,942,592
7.375%, 6/15/2009 (Prerefunded 6/15/1999) (b)........................... 4,000,000 4,430,760
7%, 6/15/2015 (Prerefunded 6/15/2001) (b)............................... 755,000 840,247
New York State Dormitory Authority, Revenue:
City University System:
5.75%, 7/1/2018....................................................... 2,000,000 1,830,340
7.625%, 7/1/2020 (Prerefunded 7/1/2000) (b)........................... 4,000,000 4,558,720
State University Educational Facilities 7%, 5/15/2018 (Prerefunded 5/15/2000) (b) 3,295,000 3,651,025
New York State Energy Research and Development Authority,
Electric Facilities Revenue:
(Consolidated Edison Co. of New York, Inc.):
7.50%, 7/1/2025................................................... 3,000,000 3,187,080
7.50%, 1/1/2026................................................... 2,000,000 2,135,640
(Long Island Lighting Co.):
7.15%, 9/1/2019................................................... 3,650,000 3,535,208
7.15%, 6/1/2020................................................... 4,000,000 3,873,000
7.15%, 2/1/2022................................................... 7,500,000 7,256,250
New York State Housing Finance Agency, Revenue:
(Refunding - Health Facilities - New York City) 8%, 11/1/2008........... 5,000,000 5,537,850
Service Contract Obligation 7.30%, 3/15/2021 (Prerefunded 9/15/2001) (b) 5,000,000 5,706,000
PREMIER MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW YORK (CONTINUED)
New York State Local Government Assistance Corp.
7%, 4/1/2016 (Prerefunded 4/1/2001) (b)................................. $ 5,500,000 $ 6,136,845
New York State Medical Care Facilities Finance Agency, Revenue
(Mental Health Service Facilities Improvement):
7.875%, 8/15/2020..................................................... 1,295,000 1,412,068
Refunding 7.875%, 8/15/2000........................................... 1,150,000 1,323,846
NORTH CAROLINA-.4%
Martin County Industrial Facilities and Pollution Control Financing
Authority,
SWDR (Weyerhaeuser Co.) 6.80%, 5/1/5024................................. 2,000,000 2,059,300
OHIO-.6%
Gateway Economic Development Corp., Greater Cleveland Excise Tax Revenue
7.50%, 9/1/2005......................................................... 3,500,000 3,762,430
OKLAHOMA-.8%
Tulsa Municipal Airport Trust, Revenue (American Airlines, Inc.) 7.375%, 12/1/2020 4,300,000 4,373,100
PENNSYLVANIA-7.1%
Blair County Hospital Authority, Revenue (Altoona Hospital) 7.247%, 7/1/2013 (a,d) 5,000,000 5,176,900
Lancaster County Hospital Authority, Revenue (Health Center - United Church
Homes Project) 9.125%, 10/1/2014 (Prerefunded 10/1/1999) (b)............ 1,465,000 1,725,052
Lehigh County General Purpose Authority, Revenue (Wiley House):
8.75%, 11/1/2014........................................................ 2,000,000 1,988,880
9.50%, 11/1/2016........................................................ 3,000,000 3,110,280
Montgomery County Higher Education and Health Authority, Revenue
(AHF/Montgomery, Inc. Project) 10.50%, 9/1/2020......................... 3,500,000 3,749,655
Pennsylvania Convention Center Authority, Revenue, Refunding 6.70%, 9/1/2014 8,125,000 8,168,875
Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue
(Philadelphia Funding Program) 6.80%, 6/15/2022 (Prerefunded 6/15/2002) (b) 5,500,000 6,052,640
Philadelphia, Water and Sewer Revenue 7.35%, 9/1/2004....................... 4,970,000 5,700,689
Philadelphia Hospital and Higher Education Facility Authority, HR
(Graduate Health Systems) 7.25%, 7/1/2018............................... 6,100,000 6,139,589
RHODE ISLAND-.4%
Rhode Island Depositors Economic Protection Corp.,
6.95%, 8/1/2022 (Prerefunded 8/1/2002) (b).............................. 2,000,000 2,253,560
SOUTH CAROLINA-.5%
Richland-Lexington Airport District, Airport Revenue
(Colombia Metropolitan Airport) 6.125%, 1/1/2025 (Insured; AMBAC)....... 3,000,000 2,910,000
TENNESSEE-1.6%
Maury County Industrial Development Board, PCR, Refunding
(Saturn Corp. Project) 6.50%, 9/1/2024.................................. 5,500,000 5,372,675
McMinn County Industrial Development Board, PCR
(Calhoun Newsprint Co. Project) 7.625%, 3/1/2016........................ 3,000,000 3,129,600
Tennessee Housing Development Agency, Mortgage Finance 6.90%, 7/1/2025...... 1,000,000 1,019,360
PREMIER MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
TEXAS-9.9%
Alliance Airport Authority, Special Facilities Revenue
(American Airlines, Inc. Project):
7%, 12/1/2011......................................................... $ 10,700,000 $ 10,678,172
7.50%, 12/1/2029...................................................... 6,000,000 6,129,540
Brazos River Authority, PCR (Texas Utilities Electric Co. Project)
7.875%, 3/1/2021........................................................ 490,000 532,483
Dallas - Fort Worth International Airport Facility Improvement Corp.,
Revenue:
(American Airlines, Inc.) 7.50%, 11/1/2025.............................. 13,000,000 13,279,500
(Delta Airlines, Inc.) 7.125%, 11/1/2026................................ 4,200,000 4,181,646
Gulf Coast Waste Disposal Authority, Revenue
(Champion International Corp.) 7.45%, 5/1/2026.......................... 7,000,000 7,369,880
Port Corpus Christi Authority, PCR, Refunding
(Hoechst Celanese Co. Project) 7.50%, 8/1/2012.......................... 4,000,000 4,311,160
Texas Housing Agency, SFMR 7.875%, 9/1/2012................................. 835,000 861,687
Texas Public Property Finance Corp., Revenue (Mental Health and Retardation
Center)
8.20%, 10/1/2012 (Prerefunded 10/1/2002) (b)............................ 8,840,000 10,450,118
UTAH-4.0%
Carbon County, SWDR, Refunding:
(East Carbon Development Corp.) 9%, 7/1/2012............................ 4,000,000 4,157,200
(Laidlaw Inc./ECDC Project) 7.50, 2/1/2010.............................. 3,300,000 3,369,201
(Sunnyside Cogeneration) 9.25%, 7/1/2018................................ 15,000,000 16,166,250
VIRGINIA-.5%
Virginia Housing Development Authority, Commonwealth Mortgage
6.20%, 7/1/2021......................................................... 3,255,000 3,077,928
WASHINGTON-.5%
Pilchuck Development Public Corp., Industrial Revenue, Refunding (Little Neck
Properties Project) 6.25%, 8/1/2010 (LOC; US Bank of Washington) (e).... 3,090,000 3,103,442
WEST VIRGINIA-2.7%
West Virginia Parkways Economic Development and Tourism Authority
5.831%, 5/16/2019 (Insured; FGIC)....................................... 8,000,000 7,671,920
West Virginia Water Development Authority, Water Development Revenue
(Loan Program II) 7.50%, 11/1/2029 (Prerefunded 11/1/1999) (b).......... 1,900,000 2,129,843
Winchester Industrial Development Authority, HR
.91%, 1/1/1996 (d)...................................................... 3,100,000 3,021,043
1.52%, 1/1/1997 (d)..................................................... 3,300,000 3,107,841
WYOMING-.5%
Sweetwater County, SWDR (FMC Corp. Project) 7%, 6/1/2024.................... 1,575,000 1,588,136
Wyoming Community Development Authority, Single Family Mortgage 8%, 6/1/2021 1,355,000 1,412,032
U.S. RELATED-.5%
Puerto Rico Commonwealth 6.25%, 7/1/2013 (Insured; MBIA) (c)................ 3,000,000 3,163,980
--------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $561,324,789)................... $585,139,443
==============
</TABLE>
<TABLE>
<CAPTION>
PREMIER MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENT-.3% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
CONNECTICUT;
Connecticut Development Authority, Health Care Revenue, VRDN
(Corp. Independent Living Project) 4.65% (LOC; Credit Commercial De
France) (e,f)
(cost $1,600,000)..................................................... $ 1,600,000 $ 1,600,000
===============
TOTAL INVESTMENTS-100.0%
(cost $562,924,789)..................................................... $586,739,443
===============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FHA Federal Housing Administration RRR Resource Recovery Revenue
HR Hospital Revenue SFHR Single Family Housing Revenue
IDR Industrial Development Revenue SFMR Single Family Mortage Revenue
LOC Letter of Credit SWDR Solid Waste Disposal Revenue
MBIA Municipal Bond Investors Assurance VRDN Variable Rate Demand Notes
Insurance Corporation
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (G) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
AAA Aaa AAA 14.7%
AA Aa AA 5.4
A A A 16.0
BBB Baa BBB 36.8
BB Ba BB 6.1
F-1+, F-1 MIG1, VMIG1 & P1 SP1 & A1 .3
Not Rated (h) Not Rated (h) Not Rated (h) 20.7
--------
100.0%
========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Wholly held by the custodian in a segregated account as collateral
for a delayed delivery security.
(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) Purchased on delayed delivery basis.
(d) Inverse floater security - the interest rate is subject to change
periodically.
(e) Secured by letter of credit.
(f) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(g) Fitch currently provides creditworthiness information for a limited
number of investments.
(h) Securities which, while not rated by Fitch, Moody's or 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>
<CAPTION>
PREMIER MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $562,924,789)-see statement..................................... $586,739,443
Cash.................................................................... 3,714,719
Interest receivable..................................................... 12,777,511
Receivable for shares of Beneficial Interest subscribed................. 411,409
Prepaid expenses........................................................ 43,237
--------------
603,686,319
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 271,255
Due to Distributor...................................................... 164,327
Payable for investment securities purchased............................. 7,575,713
Payable for shares of Beneficial Interest redeemed...................... 459,008
Accrued expenses........................................................ 189,066 8,659,369
------------ --------------
NET ASSETS ................................................................ $595,026,950
==============
REPRESENTED BY:
Paid-in capital......................................................... $589,802,839
Accumulated net realized capital losses and distributions in excess of
net realized gain on investments...................................... (18,590,543)
Accumulated net unrealized appreciation on investments-Note 3(b)........ 23,814,654
--------------
NET ASSETS at value......................................................... $595,026,950
===============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 35,756,494
==============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 7,170,392
===============
NET ASSET VALUE per share:
Class A Shares
($495,615,827 / 35,756,494 shares).................................... $13.86
=======
Class B Shares
($99,411,123 / 7,170,392 shares)...................................... $13.86
=======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 43,228,502
EXPENSES:
Management fee-Note 2(a).............................................. $ 3,361,698
Shareholder servicing costs-Note 2(c)................................. 1,974,564
Distribution fees (Class B shares)-Note 2(b).......................... 489,529
Custodian fees........................................................ 58,925
Professional fees..................................................... 56,881
Registration fees..................................................... 52,938
Prospectus and shareholders' reports.................................. 52,285
Trustees' fees and expenses-Note 2(d)................................. 26,203
Miscellaneous......................................................... 45,341
--------------
TOTAL EXPENSES.................................................... 6,118,364
--------------
INVESTMENT INCOME-NET............................................. 37,110,138
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments (including options transactions)-Note 3(a) $(15,841,048)
Net realized gain on financial futures-Note 3(a)........................ (1,236,099)
--------------
NET REALIZED (LOSS)................................................... (17,077,147)
Net unrealized appreciation on investments.............................. 17,971,750
--------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 894,603
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 38,004,741
==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED APRIL 30,
--------------------------------
1994 1995
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 38,105,215 $ 37,110,138
Net realized (loss) on investments...................................... (1,468,275) (17,077,147)
Net unrealized appreciation (depreciation) on investments for the year.. (29,828,947) 17,971,750
--------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 6,807,993 38,004,741
-------------- --------------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net:
Class A shares........................................................ (34,640,947) (31,608,832)
Class B shares........................................................ (3,464,268) (5,501,306)
From net realized gain on investments:
Class A shares........................................................ (1,935,559) ---
Class B shares........................................................ (249,175) ---
In excess of net realized gain on investments:
Class A shares........................................................ (39,975) ---
Class B shares........................................................ (5,146) ---
-------------- --------------
TOTAL DIVIDENDS................................................... (40,335,070) (37,110,138)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 104,748,904 30,432,598
Class B shares........................................................ 83,821,633 14,763,131
Dividends reinvested:
Class A shares........................................................ 22,085,600 18,464,043
Class B shares........................................................ 2,282,208 3,214,657
Cost of shares redeemed:
Class A shares........................................................ (80,102,730) (99,967,298)
Class B shares........................................................ (4,090,771) (14,454,418)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS 128,744,844 (47,547,287)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... 95,217,767 (46,652,684)
NET ASSETS:
Beginning of year....................................................... 546,461,867 641,679,634
-------------- --------------
End of year............................................................. $641,679,634 $595,026,950
=============== =============
</TABLE>
<TABLE>
<CAPTION>
SHARES
------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------- --------------------------------
YEAR ENDED APRIL 30, YEAR ENDED APRIL 30,
-------------------------------- --------------------------------
1994 1995 1994 1995
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 7,100,350 2,241,162 5,676,601 1,080,646
Shares issued for dividends reinvested. 1,502,278 1,354,808 155,727 235,883
Shares redeemed........................ (5,500,645) (7,383,625) (281,527) (1,070,587)
-------------- -------------- -------------- -----------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING.... 3,101,983 (3,787,655) 5,550,801 245,942
============== =========== ============== ==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of Beneficial Interest outstanding, total investment
return, ratios to average net assets and other supplemental data for each
year indicated. This information has been derived from the Fund's financial
statements.
CLASS A SHARES CLASS B SHARES
------------------------------------------------ ----------------------------
YEAR ENDED APRIL 30, YEAR ENDED APRIL 30,
------------------------------------------------ ----------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995 1993(1) 1994 1995
------- ------- ------- ------- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $12.77 $13.28 $13.75 $14.45 $13.81 $14.02 $14.45 $13.81
------- ------- ------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net............ .98 .94 .92 .89 .84 .24 .80 .77
Net realized and unrealized gain (loss)
on investments................. .51 .49 .91 (.59) 05 .43 (.59) .05
------- ------- ------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 1.49 1.43 1.83 .30 .89 .67 .21 .82
------- ------- ------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net (.98) (.94) (.92) (.89) (.84) (.24) (.80) (.77)
Dividends from net realized gain
on investments................. -- (.02) (.21) (.05) -- -- (.05) --
Dividends in excess of net realized gain
on investments................. -- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS............ (.98) (.96) (1.13) (.94) (.84) (.24) (.85) (.77)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year..... $13.28 $13.75 $14.45 $13.81 $13.86 $14.45 $13.81 $13.86
======= ======= ======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN(2)........... 12.13% 11.08% 13.76% 1.84% 6.72% 16.80%(3) 1.26% 6.15%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .22% .54% .74% . 85% .92% 1.15%(3) 1.40% 1.44%
Ratio of net investment income to
average net assets............. 7.43% 6.90% 6.43% 6.01% 6.16% 5.13%(3) 5.33% 5.62%
Decrease reflected in above expense ratios
due to undertakings by the Manager .82% .40% .20% 06% -- .10%(3) .05% --
Portfolio Turnover Rate.......... 41.30% 50.72% 30.99% 22.15% 38.60% 30.99% 22.15% 38.60%
Net Assets, end of year (000's Omitted) $247,195 $388,793 $526,606 $546,036 $495,616 $19,855 $95,643 $99,411
</TABLE>
(1) From January 15, 1993 (commencement of initial offering) to April 30,
1993.
(2) Exclusive of sales load.
(3) Annualized.
See notes to financial statements.
PREMIER MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified, open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the distributor of the Fund's
shares. Dreyfus Service Corporation is a wholly-owned subsidiary of The
Dreyfus Corporation ("Manager"). Effective August 24, 1994, the Manager
became a direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc.
The Fund offers both Class A and Class B shares. Class A shares are
subject to a sales charge imposed at the time of purchase and Class B shares
are subject to a contingent deferred sales charge imposed at the time of
redemption on redemptions made within five years of purchase. Other
differences between the two Classes include the services offered to and the
expenses borne by each Class and certain voting rights.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and 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.
(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, if any, are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
PREMIER MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can
distribute tax exempt dividends, by complying with the applicable provisions
of the Internal Revenue Code, and to make distributions of income and net
realized capital gain sufficient to relieve it from substantially all Federal
income and excise taxes.
The Fund has an unused capital loss carryover of approximately $7,557,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1995. The
carryover does not include net realized securities losses from November 1,
1994 through April 30, 1995 which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, the carryover expires in
fiscal 2003.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .55 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. The most stringent state
expense limitation applicable to the Fund presently requires reimbursement of
expenses in any full fiscal year that such expenses (exclusive of
distribution expenses and certain expenses as described above) exceed 2-1\2%
of the first $30 million, 2% of the next $70 million and 1-1\2% of the excess
over $100 million of the average value of the Fund's net assets in accordance
with California "blue sky" regulations. There was no expense reimbursement
for the year ended April 30, 1995.
Dreyfus Service Corporation retained $17,249 during the year ended April
30, 1995 from commissions earned on sales of the Fund's Class A shares.
Prior to August 24, 1994, Dreyfus Service Corporation retained $63,511
from contingent deferred sales charges imposed upon redemptions of the Fund's
Class B shares.
(B) On August 3, 1994, the Fund's shareholders approved a revised
Distribution Plan with respect to Class B shares (the "Class B Distribution
Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the Class B
Distribution Plan, effective August 24, 1994, the Fund pays the Distributor
for distributing the Fund's Class B shares at an annual rate of .50 of 1% of
the value of the average daily net assets of Class B shares.
Prior to August 24, 1994, the Distribution Plan ("prior Class B
Distribution Plan") provided that the Fund pay Dreyfus Service Corporation at
an annual rate of .50 of 1% of the value of the Fund's Class B shares average
daily net assets, for costs and expenses in connection with advertising,
marketing and distributing the Fund's Class B shares. Dreyfus Service
Corporation made payments to one or more Service Agents based on the value of
the Fund's Class B shares owned by clients of the Service Agent.
During the year ended April 30, 1995, $334,342 was charged to the Fund
pursuant to the Class B Distribution Plan and $155,187 was charged to the
Fund pursuant to the prior Class B Distribution Plan.
(C) Under the Shareholder Services Plan, the Fund pays the Distributor,
at an annual rate of .25 of 1% of the value of the average daily net assets
of Class A and Class B shares for servicing shareholder
PREMIER MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
accounts. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the
Fund and providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. From May 1, 1994 through August 23,
1994, $425,801 and $77,593 were charged to Class A and Class B shares,
respectively, by Dreyfus Service Corporation. From August 24, 1994 through
April 30, 1995, $857,479 and $167,171 were charged to the Class A and Class B
shares, respectively, by the Distributor pursuant to the Shareholder Services
Plan.
(D) Prior to August 24, 1994, certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each trustee who is not an "affiliated person"
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding option transactions, amounted to $400,684,880 and $436,203,780,
respectively, for the year ended April 30, 1995, and consisted entirely of
long-term and short-term municipal investments.
In addition, the following table summarizes the Fund's call/put options
written transactions for the year ended April 30, 1995.
<TABLE>
<CAPTION>
OPTIONS TERMINATED
--------------------------------
NET
NUMBER OF PREMIUMS REALIZED
CONTRACTS RECEIVED COST GAIN
-------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
OPTIONS WRITTEN:
Contracts outstanding April 30, 1994.... 400 $ 296,552
Contracts written....................... 20,900 9,035,735
-------------- --------------
21,300 9,332,287
-------------- --------------
Contracts terminated:
Closed................................ 5,250 2,541,539 $1,851,372 $ 690,167
Exercised............................. 3,195 2,999,705 --- ---
Expired............................... 12,855 3,791,043 --- 3,791,043
-------------- -------------- -------------- --------------
Total contracts terminated........ 21,300 9,332,287 $1,851,372 $4,481,210
============== ============== ============== ==============
Contracts outstanding April 30, 1995.... --- ---
============== ==============
</TABLE>
As a writer of call options, the Fund receives a premium at the outset
and then bears the market risk of unfavorable changes in the price of the
financial instrument underlying the option. Generally, the Fund would incur a
gain, to the extent of the premiums, if the price of the underlying financial
instrument decreases between the date the option is written and the date on
which the option is terminated. Generally, the Fund would realize a loss, if
the price of the financial instrument increases between those dates.
PREMIER MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As a writer of put options, the Fund receives a premium at the outset and
then bears the market risk of unfavorable changes
in the price of the financial instrument underlying the option. Generally,
the Fund would incur a gain, to the extent of the premiums, if the price of
the underlying financial instrument increases between the date the option is
written and the date on which the option is terminated. Generally, the Fund
would realize a loss, if the price of the financial instrument decreases
between those dates.
The Fund is engaged in trading financial futures contracts. The Fund is
exposed to market risk as a result of changes in the value of the underlying
financial instruments. Investments in financial futures require the Fund to
"mark to market" on a daily basis, which reflects the change in the market
value of the contract at the close of each day's trading. Accordingly,
variation margin payments are made or received to reflect daily unrealized
gains or losses. When the contracts are closed, the Fund recognizes a
realized gain or loss. These investments require initial margin deposits with
a custodian, which consist of cash or cash equivalents, up to approximately
10% of the contract amount. The amount of these deposits is determined by the
exchange or Board of Trade on which the contract is traded and is subject to
change. At April 30, 1995, there were no financial futures contracts
outstanding.
(B) At April 30, 1995, accumulated net unrealized appreciation on
investments was $23,814,654, consisting of $28,183,278 gross unrealized
appreciation and $4,368,624 gross unrealized depreciation.
At April 30, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
PREMIER MUNICIPAL BOND FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER MUNICIPAL BOND FUND
We have audited the accompanying statement of assets and liabilities of
Premier Municipal Bond Fund, including the statement of investments, as of
April 30, 1995, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in
the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Premier Municipal Bond Fund at April 30, 1995, 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.
(Ernest & Young LLp Signature Logo)
New York, New York
June 1, 1995
PREMIER MUNICIPAL BOND FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during its fiscal year ended April
30, 1995 as "exempt-interest dividends" (not generally subject to regular
Federal income tax).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1995 calendar year
on Form 1099-DIV which will be mailed by January 31, 1996.
PREMIER 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
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 022/612AR954
Annual Report
PREMIER MUNICIPAL
BOND FUND
April 30, 1995
(Dreyfus Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN PREMIER MUNICIPAL BOND FUND CLASS A SHARES
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
_______________________________________________________
| | | |
| | | PREMIER |
| PERIOD | LEHMAN BROTHERS | MUNICIPAL |
| | MUNICIPAL | BOND FUND |
| | BOND INDEX * | (CLASS A SHARES)|
|---------------|-----------------|--------------------|
| 11/26/86 | 10,000 | 9,550 |
| 4/30/87 | 9,701 | 9,025 |
| 4/30/88 | 10,550 | 9,353 |
| 4/30/89 | 11,492 | 10,674 |
| 4/30/90 | 12,320 | 11,341 |
| 4/30/91 | 13,735 | 12,716 |
| 4/30/92 | 15,041 | 14,126 |
| 4/30/93 | 16,944 | 16,070 |
| 4/30/94 | 17,310 | 16,366 |
| 4/30/95 | 18,461 | 17,466 |
|------------------------------------------------------|
* Source: Lehman Brothers
