LETTER TO SHAREHOLDERS
Dear Shareholder:
Since our last report to shareholders, the bond markets have been
victimized by a strengthening economy, fears of rising inflation and a
weakening U.S. dollar. As a result of these influences, interest rates rose
much faster than most economists had anticipated. Prices of municipal bonds
reached their low early in the second quarter; since then they have edged
higher, eliminating a large percentage of their earlier losses.
For the six-month period ended July 31, 1994, the Premier California
Municipal Bond Fund lost $.92 per Class A share (6.74% of net asset value)
and $.91 per Class B share (6.67% of net asset value). Partially offsetting
the loss of principal were income dividends paid of $.36 per Class A share,
which equates to an annualized distribution rate per share of 5.47%, based on
the closing maximum offering price of $13.32 on July 31, 1994. For Class B
shares, income dividends were $.33 and the annualized distribution rate per
share was 5.17% based on the closing net asset value per share of $12.73. All
income distributed is exempt from Federal and State of California personal
income taxes.*
Last summer when we saw the economy gathering momentum, we put in place a
more defensive investment strategy. We wanted to reduce the level of the
portfolio's volatility caused by the contradictory indications of economic
strength, inflation direction, and currency concerns that so often pervade
the fixed-income markets. We believe that our actions were generally
successful. While we continue to be very cautious in our investment strategy,
we are beginning to feel more sanguine about the municipal market. Spurts of
market volatility due to conflicting economic data will continue. However,
the favorable technical position of the municipal market (i.e., strong demand
for tax exempt securities and sharply reduced supply of new issues) leads us
to view the municipal market more favorably today than we have in previous
months.
The current fiscal situation in California has been described by some
observers as a "crisis". The situation is serious and the attendant political
picture adds an additional element of risk. The sale last month of over $7
billion of warrants and notes was of unprecedented size, and certainly
underscores the depths of the State's problems. There is reason to believe
that the gaps in the 1995 budget may not be closed by the Governor's proposed
expenditure reductions and new revenues. If the State has to turn to the
market again in February (if some of the anticipated new revenues are not
realized), the State's credit ratings could be subjected to additional
downgrades. Until the economic picture becomes clearer, we will continue to
limit our holdings of State-supported debt.
The dual economic uncertainties (national and State) recommend that we
continue a cautious approach. However, as stated above, we sense that the
tide is changing, becoming more positive at least on the national level.
Should a clearer picture emerge, we are poised to alter our investment
strategy accordingly.
Very truly yours,
(signature logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
August 15, 1994
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
<TABLE>
<CAPTION>
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS JULY 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100% AMOUNT VALUE
-------------- ---------------
<S> <C> <C>
CALIFORNIA-94.1%
Alameda, Special Tax (Community Facilities District Number 1) 7.75%, 9/1/2019 $ 2,000,000 $ 2,070,860
Alameda Housing Authority, MFHR (Independence Apartment Project)
7.50%, 2/20/2031 (Collateralized; FNMA)................................. 1,705,000 1,800,429
Anaheim Public Financing Authority, Tax Allocation Revenue
(Redevelopment Project Alpha) 9.72%, 12/28/2018 (Insured; MBIA) (a)..... 2,000,000 2,102,500
Antelope Valley Hospital District, Insured COP 7.30%, 1/1/2006.............. 2,400,000 2,597,832
Bakersfield, COP (Wastewater Treatment Plant 3 Project) 8%, 1/1/2010........ 250,000 272,700
California :
6.90%, 4/1/2005......................................................... 2,000,000 2,199,780
6.125%, 10/1/2011....................................................... 2,875,000 2,940,809
7.375%, 2/1/2019........................................................ 275,000 278,135
California Department of Water Resources, Revenue (Central Valley Project)
9.093%, 12/1/2026 (a,b)................................................. 3,900,000 3,909,750
California Educational Facilities Authority, Revenue:
(Refunding - Saint Mary's College) 5%, 10/1/2012........................ 3,000,000 2,643,270
(Santa Clara University) 6.25%, 2/1/2016................................ 3,500,000 3,509,905
California Health Facilities Financing Authority, Revenue:
(Children's Hospital of Los Angeles) 7.125%, 6/1/2021 (Prerefunded 6/1/2001) (c) 2,000,000 2,270,720
(Eskaton Properties) 7.50%, 5/1/2020 (Insured; California Health
Facilities
Construction Insurance) (Prerefunded 5/1/2000) (c).................... 4,000,000 4,575,680
(Health Dimensions) 7%, 5/1/2020........................................ 6,000,000 6,012,900
(Saint Francis Memorial Hospital) 5.875%, 11/1/2023..................... 4,500,000 4,025,925
California Housing Finance Agency, Home Mortgage Revenue:
8.30%, 8/1/2019......................................................... 210,000 217,388
Zero Coupon, 8/1/2023................................................... 6,570,000 702,333
7.50%, 8/1/2029......................................................... 1,150,000 1,195,563
8%, 8/1/2029............................................................ 620,000 639,022
7.60%, 8/1/2030......................................................... 1,920,000 1,970,784
7.70%, 8/1/2030......................................................... 1,200,000 1,244,844
7.875%, 8/1/2031........................................................ 350,000 358,211
California Pollution Control Financing Authority:
RRR (Waste Management, Inc.) 7.15%, 2/1/2011............................ 2,000,000 2,142,340
SWDR (North County Recycling Center)
6.75%, 7/1/2011 (LOC; Union Bank of Switzerland) (d).................. 2,500,000 2,578,175
California Public Works Board, LR:
(Department of Corrections - Madera State Prison) 6%, 6/1/2010.......... 3,000,000 2,978,520
(Department of Corrections - Susanville State Prison)
5.375%, 6/1/2018 (Insured; MBIA)...................................... 6,500,000 5,866,055
(Secretary of State) 6.75%, 12/1/2012................................... 2,375,000 2,438,697
(University of California Projects) 5.55%, 6/1/2010..................... 4,000,000 3,747,360
California Statewide Communities Development Authority, COP, Revenue,
Refunding:
(Pacific Homes) 5.90%, 4/1/2009......................................... 4,340,000 4,295,732
(Triad Healthcare) 6.25%, 8/1/2006...................................... 2,000,000 1,910,520
Central Valley Financing Authority, Cogeneration Project Revenue
(Carson Ice - General Project) 6%, 7/1/2009............................. 4,500,000 4,381,290
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- ---------------
CALIFORNIA (CONTINUED)
Compton, COP, Refunding 7.50%, 8/1/2015 (LOC; Mitsui Trust and Banking) (d). $ 2,000,000 $ 2,061,020
Contra Costa County, Home Mortgage Revenue
8.25%, 6/1/2021 (Collateralized; GNMA).................................. 350,000 465,927
Fontana Redevelopment Agency, Tax Allocation Revenue
(North Fontana Redevelopment Project) 7.25%, 9/1/2020................... 4,250,000 4,429,690
Glendora Public Finance Authority, Tax Allocation Revenue 7.625%, 9/1/1999.. 1,815,000 2,065,488
Irvine Ranch Water District Joint Powers Agency, Local Pool Revenue:
7.875%, 2/15/2023....................................................... 750,000 801,045
8.25%, 8/15/2023........................................................ 2,500,000 2,707,600
Lake Elsinore Public Financing Authority, Local Agency Revenue:
7.50%, 10/1/2010........................................................ 3,000,000 3,104,340
8%, 10/1/2020........................................................... 1,640,000 1,691,463
Los Angeles City, Wastewater Systems Revenue:
6.80%, 8/1/1998......................................................... 1,500,000 1,635,240
Refunding 7.10%, 6/1/2018............................................... 3,000,000 3,163,650
Los Angeles Convention and Exhibition Center Authority, COP, Revenue,
Refunding:
7.375%, 8/15/2018 (Prerefunded 8/15/1999) (c)........................... 700,000 786,142
7%, 8/15/2020 (Prerefunded 8/15/1999) (c)............................... 2,000,000 2,217,660
Los Angeles County, Transportation Commission, Sales Tax Revenue, Refunding
6.50%, 7/1/2013......................................................... 5,260,000 5,380,980
Los Angeles County Building Authority, Revenue, Refunding:
5.60%, 5/1/2008......................................................... 4,445,000 4,283,602
5.625%, 5/1/2011........................................................ 5,250,000 4,968,915
Los Angeles Department of Water and Power, Electric Plant Revenue
6.125%, 1/15/2033 ...................................................... 10,000,000 9,539,500
Los Angeles Harbor Department, Revenue 7.60%, 10/1/2018..................... 750,000 876,427
Los Banos, COP 7.65%, 9/1/2019 (Prerefunded 9/1/1999) (c)................... 500,000 569,555
Mount Shasta, HR, COP (Mercy Medical Center)
7.25%, 7/1/2019 (Prerefunded 7/1/1999) (c).............................. 1,885,000 2,108,184
Nevada County, COP (Western Nevada Co. Solid Waste) 7.50%, 6/1/2021......... 2,200,000 2,180,178
Northern California Power Agency, Public Power Revenue:
9.295%, 7/1/2018 (a,b).................................................. 5,000,000 5,181,250
(Refunding - Geothermal Project No. 3):
7%, 7/1/2007.......................................................... 1,000,000 1,047,460
5.85%, 7/1/2010....................................................... 4,000,000 3,918,720
(Refunding - Hydroelectric Project No. 1) 7.15%, 7/1/2024............... 4,445,000 4,616,310
Oakdale Public Finance Authority, Revenue (Center City Redevelopment Project)
7.90%, 7/1/2019......................................................... 1,750,000 1,870,225
Orange County Special Tax (Community Facilities District No. 87):
7.75%, 8/15/2014........................................................ 2,375,000 2,517,999
7.80%, 8/15/2015........................................................ 2,000,000 2,236,240
Orange County Local Transportation Authority, Sales Tax Revenue
(First Senior - Measure M) 6%, 2/15/2007................................ 3,000,000 3,120,720
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- ---------------
CALIFORNIA (CONTINUED)
Orange Cove, Irrigation District Revenue, COP (Rehabilitation Project)
7.25%, 2/1/2012......................................................... $ 3,000,000 $ 3,133,770
Richmond Joint Powers Financing Authority, Revenue 7.25%, 5/15/2013......... 1,500,000 1,541,400
Riverside County, SFMR 7.80%, 5/1/2021 (Collateralized; GNMA)............... 1,250,000 1,593,600
Roseville, Special Tax (Community Facilities District No. 1) 7.70%, 9/1/2020 2,000,000 2,062,280
Sacramento County, Special Tax (Community Facilities District No. 1):
8.20%, 12/1/2010........................................................ 2,250,000 2,471,783
8.25%, 12/1/2020........................................................ 2,000,000 2,202,280
Sacramento Schools Insurance Authority, Revenue (Workers Compensation
Program)
5.75%, 6/1/2003......................................................... 3,975,000 4,018,924
San Diego City:
Port Facilities Revenue, Refunding
(National Steel and Shipbuilding Co.) 6.60%, 12/1/2002................ 3,000,000 3,054,030
(Public Safety Communication Project):
6.65%, 7/15/2010...................................................... 2,100,000 2,321,193
6.65%, 7/15/2011...................................................... 2,240,000 2,477,082
San Diego County Water Authority, Water Revenue, COP 8.305%, 5/1/2008 (a)... 2,000,000 1,920,000
San Francisco City and County Public Utilities Commission, Water Revenue,
Refunding
6%, 11/1/2015........................................................... 2,000,000 1,980,820
San Jose Financing Authority, Revenue, Refunding (Convention Center Project)
6.40%, 9/1/2022......................................................... 6,860,000 6,806,423
San Marcos Public Facilities Authority, Revenue, Refunding
(Public Improvement - Civic Center) 6.15%, 8/1/2013..................... 2,320,000 2,208,895
Santa Cruz, HR (Dominican Santa Cruz Hospital) 7%, 12/1/2013................ 750,000 777,173
Santa Monica, Wastewater Enterprise Revenue 4.75%, 1/1/2010 (Insured; AMBAC) 2,895,000 2,520,879
Santa Rosa Wastewater Services Facilities District, Refunding
7.80%, 7/2/2015 (Prerefunded 7/2/1997) (c).............................. 750,000 832,222
Sequoia Hospital District, Revenue, Refunding:
7.50%, 9/1/2008 (Prerefunded 9/1/1998) (c).............................. 825,000 925,510
7.60%, 9/1/2014 (Prerefunded 9/1/1998) (c).............................. 750,000 842,340
Simi Valley, Single Family Residential Mortgage Revenue 7.625%, 8/1/2022 (e) 2,000,000 1,100,000
Southern California Home Finance Authority, SFMR
7.625%, 10/1/2023 (Collateralized; GNMA)................................ 910,000 946,746
University of California, COP (UCLA Central Chiller/Cogeneration)
7%, 11/1/2018 (Prerefunded 11/1/1999) (c)............................... 3,340,000 3,717,988
Upland, HR, COP (San Antonio Community Hospital) 7.125%, 1/1/2011........... 1,000,000 1,044,690
Vista, MFHR (Vista Hacienda Project) 6.95%, 4/1/2017........................ 3,000,000 3,108,600
Waterford Public Financing Authority, Revenue 8.20%, 9/15/2020.............. 3,505,000 3,665,073
U.S. RELATED-5.9%
Puerto Rico Electric Power Authority, Power Revenue, Refunding:
7.125%, 7/1/1999........................................................ 3,500,000 3,909,850
7%, 7/1/2007............................................................ 2,000,000 2,188,400
7.125%, 7/1/2014........................................................ 2,000,000 2,145,980
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- ---------------
U.S. RELATED (CONTINUED)
Virgin Islands Territory (Hugo Insurance Claims Fund Program) 7.75%, 10/1/2006 $ 1,830,000 $ 2,042,024
Virgin Islands Water and Power Authority, Electric Systems Revenue 7.40%, 7/1/2011 3,000,000 3,205,800
--------------
TOTAL INVESTMENTS (cost $220,792,147)....................................... $228,189,314
=============
</TABLE>
<TABLE>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Insurance Association
FNMA Federal National Mortgage Association MFHR Multi-Family Housing Revenue
GNMA Government National Mortgage Association RRR Resources Recovery Revenue
HR Hospital Revenue SFMR Single Family Mortgage Revenue
LOC Letter of Credit SWDR Solid Waste Disposal Revenue
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ------------ -------------- -------------------- ---------------------
<S> <C> <C> <C>
AAA Aaa AAA 19.6%
AA Aa AA 15.8
A A A 37.9
BBB Baa BBB 12.7
D D D .5
Not Rated (g) Not Rated (g) Not Rated (g) 13.5
-----
100.0%
=====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security - the interest rate is subject to change
periodically.
(b) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At July 31,
1994, these securities amounted to $9,091,000 or 3.9% of net assets.
(c) 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 tax-exempt issue and to retire the bonds in full at the
earliest refunding date.
(d) Secured by letters of credit.
(e) Non-income producing security; interest payments in default.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Fund's Board of Trustees to be of
comparable quality to those rated securities in which the Fund may
invest.
See independent accountants' review report and notes to financial statements.
<TABLE>
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $220,792,147)-see statement..................................... $228,189,314
Receivable for investment securities sold............................... 4,703,541
Interest receivable..................................................... 4,136,323
Receivable for shares of Beneficial Interest subscribed................. 188,133
Prepaid expenses........................................................ 13,408
------------
237,230,719
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 165,151
Due to Custodian........................................................ 1,987,075
Payable for shares of Beneficial Interest redeemed...................... 667,740
Accrued expenses........................................................ 83,141 2,903,107
----------- -----------
NET ASSETS ............................................................... $234,327,612
============
REPRESENTED BY:
Paid-in capital......................................................... $225,044,292
Accumulated undistributed net realized gain on investments.............. 1,886,153
Accumulated net unrealized appreciation on investments-Note 3........... 7,397,167
-------------
NET ASSETS at value......................................................... $234,327,612
============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 16,829,793
============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 1,589,618
============
NET ASSET VALUE per share:
Class A Shares
($214,097,209 / 16,829,793 shares).................................... $12.72
======
Class B Shares
($20,230,403 / 1,589,618 shares)...................................... $12.73
======
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 7,884,932
EXPENSES:
Management fee-Note 2(a)............................................. $ 659,034
Shareholder servicing costs-Note 2(c)................................. 374,408
Distribution fees (Class B Shares)-Note 2(b).......................... 46,484
Professional fees..................................................... 24,528
Prospectus and shareholders' reports.................................. 15,551
Custodian fees........................................................ 12,428
Trustees' fees and expenses-Note 2(d)................................. 9,390
Registration fees..................................................... 7,048
Miscellaneous......................................................... 17,536
---------------
1,166,407
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 51,429
---------------
TOTAL EXPENSES.................................................. 1,114,978
----------
INVESTMENT INCOME-NET.......................................... 6,769,954
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3................................ $ 1,382,431
Net unrealized (depreciation) on investments............................ (19,124,974)
---------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (17,742,543)
----------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(10,972,589)
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JANUARY 31, JULY 31, 1994
1994 (UNAUDITED)
------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 14,116,597 $ 6,769,954
Net realized gain on investments..................................... 1,865,591 1,382,431
Net unrealized appreciation (depreciation) on investments for the period 15,121,644 (19,124,974)
------------ --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 31,103,832 (10,972,589)
------------ --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares..................................................... (13,671,122) (6,294,764)
Class B shares..................................................... (445,475) (475,190)
Net realized gain on investments:
Class A shares..................................................... (1,751,692) --
Class B shares..................................................... (106,093) --
------------ --------------
TOTAL DIVIDENDS................................................ (15,974,382) (6,769,954)
------------ --------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares..................................................... 26,262,438 6,143,173
Class B shares..................................................... 17,148,970 5,130,667
Dividends reinvested:
Class A shares..................................................... 7,074,547 2,814,859
Class B shares..................................................... 366,127 298,718
Cost of shares redeemed:
Class A shares..................................................... (27,275,575) (23,799,503)
Class B shares..................................................... (1,244,937) (858,861)
------------ --------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS........................................ 22,331,570 (10,270,947)
------------ --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS...................... 37,461,020 (28,013,490)
NET ASSETS:
Beginning of period.................................................. 224,880,082 262,341,102
------------ --------------
End of period........................................................ $262,341,102 $234,327,612
=========== ==============
</TABLE>
<TABLE>
SHARES
----------------------------------------------------------------------
CLASS A CLASS B
---------------------------------- --------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JANUARY 31, JULY 31, 1994 JANUARY 31, JULY 31, 1994
1994 (UNAUDITED) 1994 (UNAUDITED)
--------------- --------------- ------------- ----------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold....................... 1,965,588 477,286 1,279,001 394,110
Shares issued for dividends reinvested 526,710 221,030 27,085 23,467
Shares redeemed................... (2,036,874) (1,864,446) (92,319) (67,145)
--------------- --------------- ------------- ----------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING..... 455,424 (1,166,130) 1,213,767 350,432
=============== ============== ============= =============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
PREMIER CALIFORNIA 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 period indicated. This
information has been derived from the Fund's financial statements.
CLASS A SHARES CLASS B SHARES
--------------------------------------------------------- ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED
YEAR ENDED JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1994 1994
----------------------------------------- ----------------- ---------
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED) 1993(1) 1994 (UNAUDITED)
----- ----- ------ ----- ----- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period............... $12.00 $12.02 $12.23 $12.58 $12.80 $13.64 $12.69 $12.81 $13.64
----- ----- ------ ----- ----- ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net.... .89 .89 .82 .80 .77 .36 .03 .69 .33
Net realized and unrealized gain
(loss) on investments... .02 .21 .36 .39 .94 (.92) .12 .93 (.91)
----- ----- ------ ----- ----- ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS........ .91 1.10 1.18 1.19 1.71 (.56) .15 1.62 (.58)
----- ----- ------ ----- ----- ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment
income-net.............. (.89) (.89) (.82) (.80) (.77) (.36) (.03) (.69) (.33)
Dividends from net realized gain on
investments............. -- -- (.01) (.17) (.10) -- -- (.10) --
----- ----- ------ ----- ----- ------ ------ ------ ------
TOTAL DISTRIBUTIONS. (.89) (.89) (.83) (.97) (.87) (.36) (.03) (.79) (.33)
----- ----- ------ ----- ----- ------ ------ ------ ------
Net asset value, end of period $12.02 $12.23 $12.58 $12.80 $13.64 $12.72 $12.81 $13.64 $12.73
===== ===== ====== ===== ===== ====== ====== ====== ======
TOTAL INVESTMENT RETURN (2) 7.82% 9.45% 10.02% 9.78% 13.62% (8.21%)(3) 25.98%(3) 12.91% (8.57%)
(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets.............. -- .11% .47% .65% .78% .87%(3) 1.07%(3) 1.31% 1.42%(3)
Ratio of net investment income to
average net assets...... 7.20% 7.19% 6.62% 6.30% 5.71% 5.54%(3) 4.92%(3) 4.90% 5.11%(3)
Decrease reflected in above expense
ratios due to undertakings by
the Manager............. 1.26% .91% .48% .28% .15% .04%(3) .13%(3) .13% .04%(3)
Portfolio Turnover Rate... 28.64% 5.95% 10.29% 36.54% 26.69% 11.17%(4) 36.54% 26.69% 11.17%
(4)
Net Assets, end of period
(000's Omitted)......... $58,714 $166,095 $218,703 $224,555 $245,435 $214,097 $325 $16,906 $20,230
(1) From January 15, 1993 (commencement of initial offering) to January 31, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
PREMIER CALIFORNIA MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified, open-end management investment company. Dreyfus Service
Corporation acted as the distributor of the Fund's shares until August 24,
1994. 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. ("Premier") was
engaged as the Fund's distributor. Premier, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of Institutional
Administration Services, Inc., a provider of mutual fund administration
services, 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 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.
(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.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income taxes.
PREMIER CALIFORNIA MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .55 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. 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 21/2%
of the first $30 million, 2% of the next $70 million and 11/2% of the excess
over $100 million of the average value of the Fund's net assets in accordance
with California "blue sky" regulations. However, the Manager had undertaken
from February 1, 1994 through July 7, 1994, to reduce the management fee paid
by the Fund to the extent that the Fund's aggregate expenses (excluding
certain expenses as described above) exceeded specified annual percentages of
the Fund's average daily net assets. The reduction in management fee,
pursuant to the undertakings, amounted to $51,429 for the six months ended
July 31, 1994. The undertaking may be modified by the Manager from time to
time, provided that the resulting expense reimbursement would not be less
than the amount required pursuant to the Agreement.
Dreyfus Service Corporation retained $9,313 during the six months ended
July 31, 1994 from commissions earned on sales of the Fund's Class A shares.
Dreyfus Service Corporation retained $24,624 during the six months ended
July 31, 1994 from contingent deferred sales charges imposed upon redemptions
of the Fund's Class B shares.
(B) Under the Distribution Plan ("Class B Distribution Plan") adopted
pursuant to Rule 12b-1 under the Act, the Fund pays 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 may make payments to one or more Service Agents (a
securities dealer, financial institution, or other industry professional)
based on the value of the Fund's Class B shares owned by clients of the
Service Agent. During the six months ended July 31, 1994, $46,484 was charged
to the Fund pursuant to the Class B Distribution Plan.
(C) Under the Shareholder Services Plan, the Fund pays Dreyfus Service
Corporation, at an annual rate of .25 of 1% of the value of the average daily
net assets of Class A and Class B shares for servicing shareholder accounts.
The services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts. Dreyfus Service Corporation may make
payments to Service Agents in respect of these services. Dreyfus Service
Corporation determines the amounts to be paid to Service Agents. For the six
months ended July 31, 1994, $276,319 and $23,242 were charged to the Class A
and Class B shares, respectively, pursuant to the Shareholder Services Plan.
(D) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or Dreyfus Service Corporation.
Each trustee who is not an "affiliated person" receives an annual fee of
$2,500 and an attendance fee of $500 per meeting. Prior to April 20, 1994 the
annual fee was $1,000 and the attendance fee was $250 per meeting.
PREMIER CALIFORNIA MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $51,950,255 and $66,019,353, respectively, for the six months
ended July 31, 1994, and consisted entirely of long-term and short-term
municipal investments.
At July 31, 1994 accumulated net unrealized appreciation on investments
was $7,397,167, consisting of $10,557,343 gross unrealized appreciation and
$3,160,176 gross unrealized depreciation.
At July 31, 1994 the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
PREMIER CALIFORNIA MUNICIPAL BOND FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER CALIFORNIA MUNICIPAL BOND FUND
We have reviewed the accompanying statement of assets and liabilities of
Premier California Municipal Bond Fund, including the statement of
investments, as of July 31, 1994, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended July 31, 1994. These financial statements and financial highlights are
the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit in
accordance with generally accepted auditing standards, which will be
performed for the full year with the objective of expressing an opinion
regarding the financial statements and financial highlights taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
January 31, 1994 and financial highlights for each of the five years in the
period ended January 31, 1994 and in our report dated March 7, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
New York, New York
September 2, 1994
SEMI-ANNUAL REPORT
PREMIER CALIFORNIA
MUNICIPAL BOND FUND
JULY 31, 1994
(Dreyfus Lion Logo)
PREMIER CALIFORNIA
MUNICIPAL BOND FUND
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
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. 023/613SA947
