PREMIER CALIFORNIA MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Premier California
Municipal Bond Fund. For its semi-annual reporting period ended July 31,
1996, your Fund produced a total return, including bond price changes and
interest income, of - .55% for Class A shares, - .80% for Class B shares and
- - .77% for Class C shares.* Income dividends, exempt from Federal and State
of California personal income taxes, of approximately $.315 per share for
Class A shares, $.282 per share for Class B shares and $.266 per share for
Class C shares were paid to shareholders.** This is equivalent to an
annualized tax-free distribution rate per share of 4.79% for Class A shares,
4.50% for Class B shares and 4.23% for Class C shares.+
THE ECONOMY
Strong second-quarter growth, a tightening labor market and signs of
upward pressure on wages have, in the words of Chairman Alan Greenspan,
placed the Federal Reserve Board (the "Fed") in a state of "heightened
surveillance" regarding signs of potentially higher inflation. So far,
inflation reports have been benign. Through July 31, the Consumer Price Index
rose 3.0% for the preceding 12 months, generally consistent with its trend
over the past several years. Wholesale prices have been similarly well-behaved,
while commodity prices have been in decline since early spring. As
favorable as these reports have been, the Fed looks deeper into the economy
for signs of strain that could result in increased inflation. Before the Fed
began its last round of interest rate increases in early 1994, there was
little actual evidence of inflation. Yet, concerned that a number of
indicators suggested that inflation could surge later on, the Federal Reserve
applied the monetary brakes. Now it seems that the Fed's attention is drawn
to indications that continued strong reports of job growth and rising wages
may fuel unacceptable increases in the rate of inflation. The investment
markets have been anticipating a Fed tightening. (The last rise in the
Federal Funds rate occurred on February 1, 1995. Since then all of the moves
by the Fed have been to lower rates; the last reduction to 5.25% occurred on
January 31, 1996.)
Investor fears that the Fed would raise short-term interest rates
resulted in a rise in long-term interest rates of a full percentage point
since January. Ironically, this rise might have stayed the Fed's hand from
being more aggressive. The effect of the rise on consumer spending and
housing, according to one growing view, may contribute to a moderation of
economic growth over the second half of the year. Yet, little evidence of a
potential slowdown has emerged so far. Higher mortgage rates have not tempered
growth in the housing market and construction starts of new homes are at
their highest level since April 1994. Retail sales growth remains solid
despite rises in consumer installment debt and credit card delinquencies. On
the manufacturing side of the economy, industrial production continues to
gain without any sign of strain to keep up with demand. Capacity utilization
(83.2% of potential output at midyear) remains below the 85% level that most
economists believe indicates a potential for inflationary bottlenecks. Still,
we remain alert to signs of inflationary pressures that might trigger a rise
in interest rates.
MARKET ENVIRONMENT
The municipal market experienced a dramatic decline beginning in the
first quarter of 1996. Precipitating this decline was the surprising growth
in employment and brisk increase in retail sales. The market reaction to the
growth in these numbers was swift and sure. In a matter of weeks, interest
rates as measured by long-maturity U.S. Government bonds rose from below 6%
to above 7%-a rise of about 16% in yield. This negative price action pulled
municipals down in value also, albeit to a somewhat lesser extent. Inflation,
however, has yet to show any troubling rise with staying power. Each harmful
statistic indicating a return to inflation is quickly followed by data
suggesting a slowing economy and a falling or stable inflationary trend.
Beginning in April, the market began to stabilize in this new, lower
trading range. Recently, the market moved out of this range to the upside-a
positive development. While we are pleased to see this movement to higher
price levels, the market remains vulnerable to further downward pressure
should further economic strength appear. Economic weakness, on the other
hand, would prove beneficial to long-term security prices, relieving
immediate fears of renewed inflation. Additionally, on a positive note, the
municipal market continues to benefit from lower supplies of new issues and
less discussion of a flat tax, both of which had produced weakness in prior
periods.
THE PORTFOLIO
At the beginning of 1996 the Fund was largely composed of defensive
coupon bonds, many of which had short calls. As the year progressed, we
systematically took profits by selling these short call bonds since the
market in general appeared uneasy. We then invested these funds in discount
bonds with very good structural characteristics. This has provided the Fund
with a more favorable balance of premium bonds and discount bonds and further
allowed the Fund to achieve the necessary balance as we moved through the
first half of the year. The duration of the Fund has remained relatively
unchanged. Our primary task this year has focused on the protection of
principal, enhancing liquidity, and the distribution of a high level of tax
exempt income to our shareholders.
Moving forward, our thought is to continue with the theme of maintaining
a balance within the portfolio. While we are mindful of the risks associated
with additional declines, we believe that much of the market correction is
behind us and we will operate in a relative range. We are further encouraged
by the recent market moves to higher levels. It remains to be seen, however,
how the market reacts to the upcoming presidential elections as we close in
on the end of the calendar year.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
August 15, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, without taking into account 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 shares and Class C shares.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
+ Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the maximum
offering price at the end of the period in the case of Class A shares or the
net asset value per share at the end of the period in the case of Class B and
Class C shares.
<TABLE>
<CAPTION>
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS JULY 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-98.6% AMOUNT VALUE
_______ _______
<S> <C> <C>
CALIFORNIA-92.0%
Anaheim Public Financing Authority, Tax Allocation Revenue
(Redevelopment Project Alpha) 6.45%, 12/28/2018 (Insured; MBIA)......... $ 4,000,000 $ 4,241,360
Antelope Valley Hospital District, Insured COP 7.30%, 1/1/2006.............. 2,400,000 2,537,376
California:
6.90%, 4/1/2005......................................................... 2,000,000 2,268,200
5.25%, 10/1/2011........................................................ 5,250,000 5,102,580
6.125%, 10/1/2011 (a)................................................... 2,875,000 3,099,566
5.25%, 10/1/2018........................................................ 7,200,000 6,687,720
5.90%, 3/1/2025......................................................... 1,500,000 1,505,175
California Educational Facilities Authority, Revenue, Refunding (Saint Mary's College)
5%, 10/1/2012........................................................... 4,000,000 3,641,440
California Health Facilities Financing Authority, Revenue
(Saint Francis Memorial Hospital) 5.875%, 11/1/2023..................... 4,500,000 4,434,570
California Housing Finance Agency, Home Mortgage Revenue:
6.15%, 8/1/2016......................................................... 3,000,000 3,002,520
6.70%, 8/1/2025......................................................... 1,960,000 2,019,564
7.50%, 8/1/2029......................................................... 1,105,000 1,150,581
8%, 8/1/2029............................................................ 445,000 469,279
7.60%, 8/1/2030......................................................... 1,550,000 1,634,336
7.70%, 8/1/2030......................................................... 905,000 951,246
California Pollution Control Financing Authority, SWDR (North County Recycling
Center) 6.75%, 7/1/2011 (LOC; Union Bank of Switzerland) (b)............ 2,500,000 2,805,575
California Public Works Board, LR:
(Secretary of State):
6.50%, 12/1/2008...................................................... 1,400,000 1,567,440
6.75%, 12/1/2012...................................................... 3,475,000 3,754,564
(University of California Projects) 5.50%, 6/1/2014..................... 8,000,000 7,721,840
California Statewide Communities Development Authority, COP, Revenue, Refunding
(Pacific Homes) 5.90%, 4/1/2009......................................... 2,340,000 2,351,583
Compton, COP, Refunding 7.50%, 8/1/2015 (LOC; Mitsui Trust and Banking) (b). 2,000,000 2,110,760
Contra Costa County, Water District Revenue 6%, 10/1/2011 (Insured; MBIA)... 1,475,000 1,538,145
Escondido Unified School District, Refunding 5.125%, 9/1/2015 (Insured; FGIC) 3,250,000 3,028,805
Eureka Public Financing Authority, Tax Allocation Revenue, Refunding
(Eureka Redevelopment Projects) 6.25%, 11/1/2011 (Insured; CGIC)........ 2,000,000 2,097,800
Fairfield, Water Revenue, Refunding 5.375%, 4/1/2017 (Insured; AMBAC)....... 9,250,000 8,859,835
Fontana Redevelopment Agency, Tax Allocation Revenue
(North Fontana Redevelopment Project) 7.25%, 9/1/2020................... 4,250,000 4,256,630
Fremont Unified School District, Alameda County:
5.875%, 8/1/2016 (Insured; MBIA)........................................ 2,000,000 2,006,840
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CALIFORNIA (CONTINUED)
Fremont Unified School District, Alameda County (continued):
5.50%, 9/1/2019 (Insured; FGIC)......................................... $ 2,085,000 $ 2,014,860
Fresno, Sewer Revenue 5%, 9/1/2023 (Insured; MBIA).......................... 2,000,000 1,791,440
Long Beach, Harbor Revenue 5.25%, 5/15/2025 (Insured; MBIA)................. 3,000,000 2,752,470
Los Angeles Harbor Department, Revenue 6.25%, 8/1/2026 (Insured; MBIA)...... 2,320,000 2,371,898
Madera County, COP (Valley Children's Hospital):
6.25%, 3/15/2006 (Insured; MBIA)........................................ 2,250,000 2,428,695
6.50%, 3/15/2009 (Insured; MBIA)........................................ 3,370,000 3,700,968
Metropolitan Water District, Southern California Waterworks Revenue, Refunding
6%, 7/1/2005 (Insured; MBIA)............................................ 5,000,000 5,413,900
Monrovia Redevelopment Agency, Tax Allocation, Refunding
(Central Redevelopment Project) 6.70%, 5/1/2021 (Insured; AMBAC)........ 2,000,000 2,148,560
Mount Shasta, HR, COP (Mercy Medical Center)
7.25%, 7/1/2019 (Prerefunded 7/1/1999) (c).............................. 1,830,000 2,013,256
Nevada County, COP (Western Nevada Co. Solid Waste-McCourtney Road Landfill)
7.50%, 6/1/2021......................................................... 2,200,000 2,228,908
Northern California Power Agency, Public Power Revenue, Refunding
(Hydroelectric Project No. 1):
6.30%, 7/1/2018....................................................... 6,000,000 6,506,160
7.15%, 7/1/2024....................................................... 4,395,000 4,617,607
Orange County, Special Tax (Community Facilities District No. 87):
7.75%, 8/15/2014........................................................ 2,375,000 2,427,274
7.80%, 8/15/2015 (Prerefunded 8/15/2000) (c)............................ 2,000,000 2,274,720
Orange Cove, Irrigation District Revenue, COP (Rehabilitation Project)
7.25%, 2/1/2012......................................................... 3,000,000 3,154,170
Pittsburg Public Financing Authority, Wastewater Revenue, Refunding
5.125%, 6/1/2015 (Insured; FGIC)........................................ 2,700,000 2,517,507
Richmond Joint Powers Financing Authority, Revenue
7.25%, 5/15/2013 (Prerefunded 5/15/2000) (c)............................ 1,500,000 1,667,700
Riverside County, SFMR 7.80%, 5/1/2021 (Collateralized; GNMA)............... 1,250,000 1,507,200
Roseville, Special Tax (Community Facilities District No. 1) 7.70%, 9/1/2020 2,000,000 2,068,460
Sacramento County, Special Tax (Community Facilities District No. 1):
8.20%, 12/1/2010........................................................ 2,250,000 2,427,570
8.25%, 12/1/2020........................................................ 2,000,000 2,136,520
San Diego County Water Authority, Water Revenue, COP 5.681%, 4/23/2008...... 4,000,000 4,106,760
San Diego Public Facilities Financing Authority, Sewer Revenue
5%, 5/15/2015 (Insured; FGIC)........................................... 3,010,000 2,763,782
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CALIFORNIA (CONTINUED)
San Jose - Santa Clara Water Financing Authority, Sewer Revenue
5.375%, 11/15/2015 (Insured; FGIC)...................................... $ 1,125,000 $ 1,080,540
Simi Valley, Single Family Residential Mortgage Revenue 7.625%, 8/1/2022 (d) 1,537,444 737,973
Southern California Rapid Transit District, COP (Worker's Compensation Fund)
6%, 7/1/2010............................................................ 2,045,000 2,124,591
University of California, Revenue:
Hospital - UC Davis Medical Center 5.75%, 7/1/2012 (Insured; AMBAC)..... 5,000,000 5,088,250
Refunding (Multiple Purpose Projects) 5%, 9/1/2023 (Insured; AMBAC)..... 8,500,000 7,435,205
Vista, MFHR (Vista Hacienda Project) 6.95%, 4/1/2017........................ 3,000,000 3,129,720
Waterford Public Financing Authority, Revenue 8.20%, 9/15/2020.............. 2,615,000 2,229,680
West Covina Redevelopment Agency, Community Facilities District, Special Tax
6%, 9/1/2022 (e)........................................................ 3,000,000 2,947,440
U.S. RELATED-6.6%
Puerto Rico Commonwealth Highway and Transportation Authority, Revenue
5.50%, 7/1/2013......................................................... 7,250,000 7,269,430
Puerto Rico Electric Power Authority, Power Revenue, Refunding 7.125%, 7/1/2014 2,000,000 2,158,840
Virgin Islands Water and Power Authority, Electric Systems Revenue 7.40%, 7/1/2011 3,000,000 3,151,500
___________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $183,215,234)................... $187,238,884
=============
SHORT-TERM MUNICIPAL INVESTMENTS-1.4%
U.S. RELATED:
Puerto Rico Commonwealth Government Development Bank, VRDN 3.20% (f)........ $ 1,900,000 $ 1,900,000
Puerto Rico Electric Power Authority, Power Revenue 3.41%, 7/1/2023 (g)..... 800,000 800,000
___________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $2,700,000).................... $ 2,700,000
=============
TOTAL INVESTMENTS-100.0% (cost $185,915,234)................................ $189,938,884
=============
</TABLE>
<TABLE>
<CAPTION>
PREMIER CALIFORNIA MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
CGIC Capital Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
GNMA Government National Mortgage Association SFMR Single Family Mortgage Revenue
HR Hospital Revenue SWDR Solid Waste Disposal Revenue
LOC Letter of Credit VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (H) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ---------- ----------- ------------------ -------------------
<S> <C> <S> <C>
AAA Aaa AAA 40.9%
AA Aa AA 4.5
A A A 32.5
BBB Baa BBB 8.8
DDD D D .6
F1 MIG1, VMIG1 & P1 SP1, A1 6.3
Not Rated (i) Not Rated (i) Not Rated (i) 6.4
______
100.0%
========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Wholly held by the custodian in a segregated account as collateral
for when-issued securities.
(b) Secured by letters of credit.
(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 municipal issue and to retire the bonds in full at the
earliest refunding date.
(d) Non-income producing security; interest payments in default.
(e) Purchased on a when-issued basis.
(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) Inverse floater security - the interest rate is subject to change
periodically.
(h) Fitch currently provides creditworthiness information for a limited
number of investments.
(i) 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 independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $185,915,234)-see statement..................................... $189,938,884
Interest receivable..................................................... 2,979,904
Receivable for shares of Beneficial Interest subscribed................. 30,000
Prepaid expenses........................................................ 5,739
_____________
192,954,527
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 93,558
Due to Distributor...................................................... 48,921
Payable for investment securities purchased............................. 2,925,750
Payable for shares of Beneficial Interest redeemed...................... 57,492
Accrued expenses and other liabilities.................................. 157,493 3,283,214
____________ _____________
NET ASSETS ................................................................ $189,671,313
==============
REPRESENTED BY:
Paid-in capital......................................................... $183,520,316
Accumulated undistributed investment income-net......................... 161,221
Accumulated undistributed net realized gain on investments.............. 1,966,126
Accumulated net unrealized appreciation on investments-Note 3........... 4,023,650
_____________
NET ASSETS at value......................................................... $189,671,313
==============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 13,387,819
==============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 1,659,969
==============
Class C Shares
(unlimited number of $.001 par value shares authorized)............... 26,919
==============
NET ASSET VALUE per share:
Class A Shares
($168,437,611 / 13,387,819 shares).................................... $12.58
=======
Class B Shares
($20,894,352 / 1,659,969 shares)...................................... $12.59
=======
Class C Shares
($339,350 / 26,919 shares)............................................ $12.61
=======
See independent accountants' review report and notes to financial statements.
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED JULY 31, 1996 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 5,932,687
EXPENSES:
Management fee-Note 2(a).............................................. $ 531,628
Shareholder servicing costs-Note 2(c)................................. 295,279
Distribution fees-Note 2(b)........................................... 52,041
Professional fees..................................................... 22,803
Trustees' fees and expenses-Note 2(d)................................. 14,173
Custodian fees........................................................ 10,561
Prospectus and shareholders' reports.................................. 7,352
Registration fees..................................................... 1,903
Miscellaneous......................................................... 8,970
__________
TOTAL EXPENSES.................................................... 944,710
__________
INVESTMENT INCOME-NET............................................. 4,987,977
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS-Note 3:
Net realized (loss) on investments...................................... $ (396,230)
Net unrealized (depreciation) on investments............................ (6,055,210)
__________
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (6,451,440)
__________
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(1,463,463)
=============
See independent accountants' review report and notes to financial statements.
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JANUARY 31, JULY 31, 1996
1996 (UNAUDITED)
______________ ____________
OPERATIONS:
Investment income-net................................................ $ 10,837,216 $ 4,987,977
Net realized gain (loss) on investments.............................. 6,212,253 (396,230)
Net unrealized appreciation (depreciation) on investments for the period 10,659,485 (6,055,210)
______________ ____________
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 27,708,954 (1,463,463)
______________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares..................................................... (9,879,785) (4,356,112)
Class B shares..................................................... (957,402) (469,376)
Class C shares..................................................... (29) (1,268)
Net realized gain on investments:
Class A shares..................................................... (4,193,091) --
Class B shares..................................................... (474,312) --
Class C shares..................................................... (23) --
______________ ____________
TOTAL DIVIDENDS................................................ (15,504,642) (4,826,756)
______________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares..................................................... 7,850,834 3,213,965
Class B shares..................................................... 2,433,172 771,834
Class C shares..................................................... 1,000 334,104
Dividends reinvested:
Class A shares..................................................... 6,858,326 1,962,243
Class B shares..................................................... 978,162 307,702
Class C shares..................................................... 52 1,214
Cost of shares redeemed:
Class A shares..................................................... (32,515,537) (16,284,860)
Class B shares..................................................... (2,012,025) (1,062,656)
______________ ____________
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS. (16,406,016) (10,756,454)
______________ ____________
TOTAL (DECREASE) IN NET ASSETS............................... (4,201,704) (17,046,673)
NET ASSETS:
Beginning of period.................................................. 210,919,690 206,717,986
______________ ____________
End of period (including undistributed investment income-net of
$161,221 on July 31, 1996)......................................... $206,717,986 $189,671,313
=============== =============
</TABLE>
<TABLE>
<CAPTION>
PREMIER CALIFORNIA MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SHARES
__________________________________________________________________________________________
CLASS A CLASS B
___________________________________ ___________________________________________
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JANUARY 31, JULY 31, 1996 JANUARY 31, JULY 31, 1996
1996 (UNAUDITED) 1996 (UNAUDITED)
____________ _____________ ____________ ______________
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold................... 611,979 255,777 191,459 61,198
Shares issued for
dividends reinvested........ 534,099 156,520 76,108 24,538
Shares redeemed.......... (2,546,673) (1,301,892) (157,990) (85,074)
____________ _____________ ____________ ______________
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING.. (1,400,595) (889,595) 109,577 662
============ ============ ============ ===============
SHARES
_____________________________________
CLASS C
_____________________________________
YEAR ENDED SIX MONTHS ENDED
JANUARY 31, JULY 31, 1996
1996* (UNAUDITED)
____________ _____________
CAPITAL SHARE TRANSACTIONS
(CONTINUED):
Shares sold.................. 77 26,742
Shares issued for
dividends reinvested........ 4 96
Shares redeemed............. -- --
____________ _____________
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING.. 81 26,838
============== =============
* From June 2, 1995 (commencement of initial offering) to January 31, 1996.
</TABLE>
See independent accountants' review report and notes to financial statements.
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.
<TABLE>
<CAPTION>
CLASS A SHARES
___________________________________________________________
SIX MONTHS ENDED
YEAR ENDED JANUARY 31, JULY 31, 1996
___________________________________________________________
PER SHARE DATA: 1992 1993 1994 1995 1996 (UNAUDITED)
_____ ______ ______ ______ ______ _______________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $12.23 $12.58 $12.80 $13.64 $12.24 $12.97
_____ ______ ______ ______ ______ _______
INVESTMENT OPERATIONS:
Investment income-net................. .82 .80 .77 .72 .67 .33
Net realized and unrealized gain (loss)
on investments...................... .36 .39 .94 (.80) 1.02 (.41)
_____ ______ ______ ______ ______ _______
TOTAL FROM INVESTMENT OPERATIONS.... 1.18 1.19 1.71 (.08) 1.69 (.08)
_____ ______ ______ ______ ______ _______
DISTRIBUTIONS:
Dividends from investment income-net.. (.82) (.80) (.77) (.72) (.67) (.31)
Dividends from net realized gain
on investments...................... (.01) (.17) (.10) (.60) (.29) --
_____ ______ ______ ______ ______ _______
TOTAL DISTRIBUTIONS................. (.83) (.97) (.87) (1.32) (.96) (.31)
_____ ______ ______ ______ ______ _______
Net asset value, end of period........ $12.58 $12.80 $13.64 $12.24 $12.97 $12.58
======= ====== ======= ====== ======== ========
TOTAL INVESTMENT RETURN(1)................ 10.02% 9.78% 13.62% (4.34%) 14.15% (1.10%)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .47% .65% .78% .90% .93% .91%(2)
Ratio of net investment income to average
net assets.......................... 6.62% 6.30% 5.71% 5.72% 5.22% 5.16%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .48% .28% .15% .02% -- --
Portfolio Turnover Rate............... 10.29% 36.54% 26.69% 37.39% 92.42% 28.14%(3)
Net Assets, end of period (000's Omitted) $218,703 $224,555 $245,435 $191,939 $185,187 $168,438
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
PREMIER CALIFORNIA MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
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.
<TABLE>
<CAPTION>
CLASS B SHARES CLASS C SHARES
_______________________________________________________ ________________________________
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
YEAR ENDED JANUARY 31, JULY 31, 1996 JANUARY 31, JULY 31, 1996
_____________________________________
PER SHARE DATA: 1993(1) 1994 1995 1996 (UNAUDITED) 1996(2) (UNAUDITED)
______ ______ _____ ______ ____________ ____________ ____________
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $12.69 $12.81 $13.64 $12.25 $12.98 $12.98 $12.98
______ ______ _____ _____ ______ ______ ______
INVESTMENT OPERATIONS:
Investment income-net .03 .69 .65 .60 .29 .37 .27
Net realized and
unrealized gain (loss)
on investments... .12 .93 (.79) 1.02 (.40) .29 (.37)
______ ______ _____ _____ ______ ______ ______
TOTAL FROM
INVESTMENT
OPERATIONS... .15 1.62 (.14) 1.62 (.11) .66 (.10)
______ ______ _____ _____ ______ ______ ______
DISTRIBUTIONS:
Dividends from investment
income-net....... (.03) (.69) (.65) (.60) (.28) (.37) (.27)
Dividends from net realized
gain on investments..... -- (.10) (.60) (.29) -- (.29) --
______ ______ _____ _____ ______ ______ ______
TOTAL DISTRIBUTIONS..... (.03) (.79) (1.25) (.89) (.28) (.66) (.27)
______ ______ _____ _____ ______ ______ ______
Net asset value,
end of period.... $12.81 $13.64 $12.25 $12.98 $12.59 $12.98 $12.61
====== ======= ====== ====== ====== ======== ==========
TOTAL INVESTMENT RETURN(3) 25.98%(4) 12.91% (4.77%) 13.55% (1.60%)(4) 7.90%(4) (1.54%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets....... 1.07%(4) 1.31% 1.42% 1.45% 1.42%(4) 4.42%(4) 2.13%(4)
Ratio of net investment income
to average net assets 4.92%(4) 4.90% 5.17% 4.69% 4.64%(4) 4.31%(4) 4.31%(4)
Decrease reflected in above
expense ratios due to
undertakings by
the Manager...... .13%(4) .13% .02% -- -- -- --
Portfolio Turnover Rate 36.54% 26.69% 37.39% 92.42% 28.14%(5) 92.42% 28.14%(5)
Net Assets, end of period
(000's Omitted).. $325 $16,906 $18,981 $21,530 $20,894 $1 $339
(1) From January 15, 1993 (commencement of initial offering) to January 31, 1993.
(2) From June 2, 1995 (commencement of initial offering) to January 31, 1996.
(3) Exclusive of sales load.
(4) Annualized.
(5) 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:
Premier California Municipal Bond Fund (the "Fund") is registered under
the Investment Company Act of 1940 ("Act") as a diversified, open-end management
investment company. The Fund's investment objective is to maximize current
income exempt from Federal and, where applicable, from State personal income
taxes to the extent consistent with the preservation of capital. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Mananger is
a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund offers Class A, Class B and Class
C shares. Class A shares are subject to a sales charge imposed at the time of
purchase, 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 and Class C shares are subject to a contingent deferred sales charge
imposed at the time of redemption on redemptions made within one year of
purchase. Other differences between the three 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 those estimates.
(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.
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.
PREMIER CALIFORNIA MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. 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 and
excise taxes.
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 value
of the Fund's average daily 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 (excluding 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
six months ended July 31, 1996.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $13,186 during the six months ended July 31, 1996 from commissions
earned on sales of the Fund's shares.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and
Class C 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 six months ended July 31,
1996, $51,823 was charged to the Fund for the Class B shares and $218 was
charged to the Fund for the Class C shares.
(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, Class B and Class C shares for the provision of certain services.
The services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the six months ended July 31,
1996, $215,665, $25,911 and $73 were charged to Class A, B and C shares,
respectively, by the Distributor pursuant to the Shareholder Services Plan.
PREMIER CALIFORNIA MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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. Such compensation
amounted to $34,392 during the six months ended July 31, 1996.
(D) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended July 31, 1996
amounted to $53,323,732 and $55,438,059, respectively.
At July 31, 1996, accumulated net unrealized appreciation on investments
was $4,023,650, consisting of $6,209,176 gross unrealized appreciation and
$2,185,526 gross unrealized depreciation.
At July 31, 1996, 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, 1996, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended July 31, 1996. 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, 1996 and financial highlights for each of the five years in the
period ended January 31, 1996 and in our report dated March 5, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young LLP signature logo]
New York, New York
September 6, 1996
PREMIER CALIFORNIA
MUNICIPAL BOND FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. PCCSA967
Semi-Annual Report
Premier California
Municipal Bond Fund
July 31, 1996
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