Dreyfus Premier
California Municipal
Bond Fund
SEMIANNUAL REPORT July 31, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
14 Financial Highlights
17 Notes to Financial Statements
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
<PAGE>
The Fund
Dreyfus Premier California Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier California
Municipal Bond Fund, covering the six-month period from February 1, 1999 through
July 31, 1999. Inside, you'll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's new
primary portfolio manager, Joseph Darcy.
Although higher interest rates eroded the value of most longer term municipal
bonds over the past six months, those declines were partially offset by current
income. As a result, the fund's total returns were modestly negative over the
past six months. In contrast, taxable U.S. Treasury securities produced much
greater declines during the same period.
We attribute municipal bonds' relative strength to the strong U.S. economy,
which has entered its eighth year of expansion in an environment characterized
by low inflation and high levels of consumer spending. These economic conditions
have helped many states and municipalities strengthen their fiscal affairs. As a
result, many municipal bond issuers received credit-rating upgrades from the
major bond-rating agencies, enabling them to borrow at lower rates. In addition,
greater-than-expected tax revenues reduced many municipalities' need to borrow,
which further supported tax-exempt bond prices.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier California Municipal Bond Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
August 13, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Joseph Darcy, Portfolio Manager
How did Dreyfus Premier California Municipal Bond Fund perform during the
period?
The fund' s Class A shares produced a -3.11% total return over the six-month
period ended July 31, 1999,(1) compared to a total return of -3.31% for the
average of the Lipper California Municipal Debt Funds category.(2) The fund
produced a total return of -3.36% for Class B shares and -3.46% for Class C
shares over the six-month period ended July 31, 1999.(1)
We attribute the fund' s relative performance to the effects of higher
intermediate- and long-term interest rates, which caused a modest decline in the
fund's share price. That's because when bond yields rise, their prices fall.
What is the fund's investment approach?
Our goal is to seek a high level of federally tax-exempt income from a
diversified portfolio of municipal bonds from California issuers. We also seek
to provide a competitive total return.
To achieve these objectives, we employ two primary strategies. First, we attempt
to add value by evaluating interest rate trends and supply-and-demand factors.
Based on that assessment, we select the individual tax-exempt bonds that we
believe are most likely to provide the highest returns with the least risk. We
look at such criteria as the bond's yield, price, age, the creditworthiness of
its issuer, and any provisions for early redemption.
Second, we actively manage the fund' s average duration -- a measure of
sensitivity to changes in interest rates -- in anticipation of temporary
supply-and-demand changes. If we expect the supply of newly issued bonds to
increase temporarily, we may reduce the fund's average duration to make cash
available for the purchase of higher-yielding securities. Conversely, if we
expect demand for municipal bonds The Fund
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
to surge at a time when we anticipate little issuance, we may increase the fund'
s average duration to maintain current yields for as long as practical. At other
times, we try to maintain a "neutral" average duration of about seven years.
What other factors influenced the fund's performance?
Because of strong economic conditions throughout the country, California and its
municipalities have had less need to borrow. As a result, fewer tax-exempt bonds
were issued in California than during the same period one year ago. Yet, demand
from investors seeking to minimize their income tax liabilities remained high.
This imbalance between supply and demand helped support California municipal
bond prices relative to other fixed-income securities.
In addition, the fund was affected by rising interest rates over the past six
months. Economies in Japan and Southeast Asia appear to have begun to recover,
and the growth of the U.S. economy has been stronger than most analysts
expected. This economic news raised concerns among some fixed-income investors
that inflation pressures might re-emerge. In fact, the Federal Reserve Board
increased short-term interest rates on June 30 in an attempt to forestall a
reacceleration of inflation. Because the market anticipated this change in
monetary policy before it was announced, longer-term tax-exempt yields had
already risen by the time the interest-rate hike was announced.
The supply-and-demand imbalance in California's municipal bond market caused
municipal bond prices to decline less than U.S. Treasury bond prices as interest
rates rose. Even after the yield differences between taxable and tax-exempt
bonds widened, however, California' s long-term municipal bonds continued to
remain more attractive investments than U.S. Treasury bonds, on an after-tax
basis.
What is the fund's current strategy?
We have continued to search for the most attractive values in California's
municipal bond market. We have found such values, in our opinion, in very high
quality bonds. Because the differences in yields
<PAGE>
between the highest quality bonds and lower quality bonds have been narrow by
historical standards, we see little reason to assume the added credit risk
lower-rated bonds entail. In addition, we have continued to monitor our existing
holdings with an eye toward identifying potential credit problems as early as
possible.
After maintaining the fund's average duration toward the short end of neutral in
a rising interest-rate environment -- a position designed to capture higher
yields as they became available -- we extended the fund's average duration
during the second quarter of 1999. This position was intended to help us lock in
prevailing yields if the economy begins to slow and interest rates begin to
decline from current levels. More recently, we have allowed the fund's average
duration to decline gradually, replacing maturing bonds with shorter-term
securities. This strategy is designed to retain the flexibility we need to
capture competitive yields while maintaining the flexibility we need to respond
quickly to changing market conditions.
August 13, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE
CASE OF CLASS A SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES CHARGE
IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD THESE
CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND INVESTMENT RETURN FLUCTUATE
SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES FOR NON-CALIFORNIA
RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX
(AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
<PAGE>
STATEMENT OF INVESTMENTS
July 31, 1999 (Unaudited)
<TABLE>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.2% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--89.5%
Abag Finance Authority For Nonprofit Corporations:
Health, Hospital and Nursing Home Revenue
<S> <C> <C> <C> <C> <C>
(Channing Home) 5.50%, 2/15/2029 2,100,000 2,011,380
MFHR (Central Park Apartments) 5.50% 7/1/2019 1,010,000 1,000,304
Alameda Corridor Transportation Authority, Transit Revenue
4.75%, 10/1/2025 (Insured; MBIA) 2,000,000 1,786,700
Alta Loma School District
Zero Coupon 8/1/2017 (Insured; FGIC) 2,310,000 859,921
California:
6.125%, 10/1/2011 (Insured; FGIC) 2,875,000 3,193,349
4.75%, 2/1/2020 3,000,000 2,727,120
5%, 8/1/2024 3,000,000 2,811,030
California Department of Water Resources, Water System Revenue
(Central Valley Project) 5.375%, 12/1/2027 (Insured; MBIA) 1,000,000 982,780
California Educational Facilities Authority, College and University
Revenue (Claremont University Center) 5.25%, 3/1/2018 3,070,000 3,025,086
California Health Facilities Financing Authority, Revenue
(Saint Francis Memorial Hospital) 5.875%, 11/1/2023 4,500,000 4,838,895
California Housing Finance Agency, Home Mortgage Revenue:
4.95%, 8/1/2014 (Insured; AMBAC) 1,500,000 1,473,525
6.15%, 8/1/2016 3,000,000 3,147,870
6.70%, 8/1/2025 1,795,000 1,896,615
7.50%, 8/1/2029 (Prerefunded 8/1/1999) 505,000 (a) 515,156
8%, 8/1/2029 (Prerefunded 8/1/1999) 275,000 (a) 280,533
7.60%, 8/1/2030 880,000 900,742
California Public Works Board, LR
(Secretary of State) 6.50%, 12/1/2008 (Insured; AMBAC) 1,400,000 1,592,542
California State University Foundation, Revenue
(Monterey Bay Auxiliary) 5%, 6/1/2024 (Insured; MBIA) 1,000,000 937,140
California Statewide Communities Development Authority, LR
(United Airlines Inc.):
5.70%, 10/1/2033 (Guaranteed; United Airlines Inc.) 5,000,000 4,977,150
5.625%, 10/1/2034 (Guaranteed; United Airlines Inc.) 7,000,000 6,878,270
Contra Costa County Public Finance Authority, Tax Allocation
Revenue (Pleasant Hill BART, North Richmond, Bay Point, Oakley
and Rodeo Redevelopment Project Areas) 5.125%, 8/1/2019 1,750,000 1,629,827
Contra Costa County Water District, Water Revenue
6%, 10/1/2011 (Insured; MBIA) 1,475,000 1,592,970
Delano, COP (Delano Regional Medical Center) 5.25%, 1/1/2018 3,500,000 3,227,875
Escondido Improvement Board 5.70%, 9/2/2026 1,000,000 969,120
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Fontana, Special Tax (Senior Community Facilities District Number 2)
5.25%, 9/1/2017 (Insured; MBIA) 4,410,000 4,376,749
Fontana Public Financing Authority, Tax Allocation Revenue
(North Fontana Redevelopment Project) 7.25%, 9/1/2020 4,250,000 4,417,067
High Desert Memorial Health Care District,
Revenue 5.40%, 10/1/2011 2,500,000 2,399,650
Los Angeles Department of Water and Power, Waterworks Revenue
5%, 10/15/2015 (Insured; MBIA) 1,245,000 1,217,187
Los Gatos-Saratoga Joint Unified High School District
4.75%, 10/1/2023 2,000,000 1,676,340
Madera County, COP (Valley Children's Hospital):
6.50%, 3/15/2008 (Insured; MBIA) 3,165,000 3,573,317
6.50%, 3/15/2009 (Insured; MBIA) 3,370,000 3,819,726
Marin Emergency Radio Authority, Public Safety and Emergency
Radio Revenue 4.75%, 8/15/2021 (Insured; AMBAC) 1,105,000 997,903
Metropolitan Water District of Southern California, Waterworks
Revenue 4.75%, 7/1/2022 7,925,000 7,141,297
Morgan Hill Improvement Board 5.60%, 9/2/2018 2,000,000 1,938,380
Napa County Flood Protection and Watershed Improvement
Authority 5%, 6/15/2018 (Insured; FGIC) 7,745,000 7,491,893
Natamos Unified School District
5.95%, 9/1/2021 (Insured; MBIA) 2,500,000 2,708,200
Nevada County, COP (Western Nevada Co.
Solid Waste-McCourtney Road Landfill) 7.50%, 6/1/2021 2,200,000 2,287,780
Northern California Power Agency, Public Power Revenue
(Hydroelectric Project No. 1)
6.30%, 7/1/2018 (Insured; MBIA) 6,000,000 6,737,880
Orange County, Special Tax (Community Facilities District No. 87)
7.75%, 8/15/2014 (Prerefunded 8/15/1999) 2,375,000 (a) 2,426,632
Pasedena Unified School District
5.125%, 7/1/2015 (Insured; FGIC) 1,500,000 1,485,450
Riverside County, SFMR 7.80%, 5/1/2021 1,250,000 1,618,050
San Joaquin Hills Transportation Corridor Agency,
Toll Road Revenue 5.50%, 1/15/2028 6,600,000 6,428,598
San Marino Unified School District 5.25%, 7/1/2013 1,160,000 1,189,371
San Mateo County Transportation District, Sales Tax Revenue
5%, 6/1/2019 (Insured; FSA) 5,555,000 5,302,359
Santa Monica-Malibu Unified School District:
5.25%, 8/1/2014 4,330,000 4,418,029
5.25%, 8/1/2018 4,325,000 4,327,552
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- -------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Simi Valley, Single Family Residential Mortgage Revenue
7.625%, 8/1/2022 665,244 (b) 113,091
Vista, MFHR (Vista Hacienda Project) 6.95%, 4/1/2017 3,000,000 3,150,600
West Covina Redevelopment Agency, Community Facilities District
Special Tax 6%, 9/1/2022 3,000,000 3,176,340
U.S. RELATED--8.7%
Commonwealth of Puerto Rico, Public Improvement
5%, 7/1/2028 5,000,000 4,616,150
Puerto Rico Commonwealth Highway and Transportation Authority,
Revenue 5.50%, 7/1/2013 (Insured; MBIA) 4,750,000 4,978,618
Virgin Islands Public Finance Authority,
Revenue 7.30%, 10/1/2018 3,100,000 3,793,842
TOTAL LONG TERM MUNICIPAL INVESTMENTS
(cost $151,203,830) 151,063,951
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SHORT-TERM MUNICIPAL INVESTMENTS--3.9%
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--2.8%
California Pollution Control Financing Authority, RRR, VRDN
(Atlantic Richfield Co. Project) 3.45% 2,500,000 (c) 2,500,000
Irvine Assessment District, VRDN 2.65%, 8/4/1999 69,000 (c) 69,000
Los Angeles, Multi-Family Revenue, VRDN
(Loans to Lender Program)
3.35% (LOC; Federal Home Loan Bank) 1,800,000 (c) 1,800,000
U.S. RELATED--1.1%
Puerto Rico Government Development Bank, VRDN
2.55% (Insured; MBIA) 1,700,000 (c) 1,700,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $6,069,000) 6,069,000
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TOTAL INVESTMENTS (cost $157,272,830) 102.1% 157,132,951
LIABILITIES, LESS CASH AND RECEIVABLES (2.1%) (3,233,795)
NET ASSETS 100.0% 153,899,156
</TABLE>
<PAGE>
Summary of Abbreviations
<TABLE>
<S> <C> <C> <C>
AMBAC American Municipal Bond MBIA Municipal Bond Investors Assurance
Assurance Corporation Insurance Corporation
COP Certificate of Participation MFHR Multi-Family
FGIC Financial Guaranty Insurance Housing Revenue
Company RRR Resources Recovery Revenue
FSA Financial Security Assurance SFMR Single Family
LOC Letter of Credit Mortgage Revenue
LR Lease Revenue VRDN Variable Rate Demand Notes
</TABLE>
Summary of Combined Ratings (Unaudited)
<TABLE>
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 44.0
AA Aa AA 18.2
A A A 8.7
BBB Baa BBB 18.8
BB Ba BB 1.4
DD D .1
F1 Mig1 SP1 3.9
Not Rated (d) Not Rated (d) Not Rated (d) 4.9
100.0
</TABLE>
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT SECURITIES
WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST ON THE
MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING DATE.
(B) NON-INCOME PRODUCING SECURITY.
(C) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(D) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
July 31, 1999 (Unaudited)
Cost Value
- -------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 157,272,830 157,132,951
Interest receivable 2,400,144
Receivable for shares of Beneficial Interest subscribed 114,904
Prepaid expenses 22,829
159,670,828
- -------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 73,040
Due to Distributor 41,741
Cash overdraft due to Custodian 223,026
Payable for investment securities purchased 5,364,797
Payable for shares of Beneficial Interest redeemed 18,692
Accrued expenses and other liabilities 50,376
5,771,672
- -------------------------------------------------------------------------------
NET ASSETS ($) 153,899,156
- ------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 153,899,301
Accumulated net realized gain (loss) on investments 139,734
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (139,879)
NET ASSETS ($) 153,899,156
NET ASSET VALUE PER SHARE
<TABLE>
Class A Class B Class C
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 134,446,364 18,236,695 1,216,097
Shares Outstanding 11,147,214 1,511,086 100,534
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 12.06 12.07 12.10
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended July 31, 1999 (Unaudited)
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 4,191,393
EXPENSES:
Management fee--Note 3(a) 442,776
Shareholder servicing costs--Note 3(c) 252,227
Distribution fees--Note 3(b) 54,485
Professional fees 23,359
Trustees' fees and expenses--Note 3(d) 23,285
Registration fees 14,014
Custodian fees 10,352
Prospectus and shareholders' reports 6,895
Loan commitment fees--Note 2 403
Miscellaneous 6,028
TOTAL EXPENSES 833,824
INVESTMENT INCOME--NET 3,357,569
- -----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 132,131
Net unrealized appreciation (depreciation) on investments (8,631,133)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (8,499,002)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (5,141,433)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
July 31, 1999 Year Ended
(Unaudited) January 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 3,357,569 7,367,225
Net realized gain (loss) on investments 132,131 3,964,179
Net unrealized appreciation (depreciation)
on investments (8,631,133) (2,541,169)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (5,141,433) 8,790,235
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (2,965,142) (6,401,755)
Class B shares (371,282) (919,057)
Class C shares (21,145) (46,413)
Net realized gain on investments:
Class A shares (726,609) (3,783,280)
Class B shares (96,299) (613,407)
Class C shares (6,133) (43,683)
TOTAL DIVIDENDS (4,186,610) (11,807,595)
- -----------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 9,830,591 9,325,763
Class B shares 1,361,697 3,485,317
Class C shares 140,226 1,575,307
Dividends reinvested:
Class A shares 1,852,093 5,256,848
Class B shares 290,470 1,020,773
Class C shares 19,899 41,255
Cost of shares redeemed:
Class A shares (13,989,451) (19,595,241)
Class B shares (6,069,322) (5,219,821)
Class C shares (110,119) (1,464,119)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (6,673,916) (5,573,918)
TOTAL INCREASE (DECREASE) IN NET ASSETS (16,001,959) (8,591,278)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 169,901,115 178,492,393
END OF PERIOD 153,899,156 169,901,115
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
Six Months Ended
July 31, 1999 Year Ended
(Unaudited) January 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 788,021 726,279
Shares issued for dividends reinvested 149,930 409,278
Shares redeemed (1,123,824) (1,522,355)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (185,873) (386,798)
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B
Shares sold 109,915 270,452
Shares issued for dividends reinvested 23,480 79,423
Shares redeemed (483,973) (404,961)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (350,578) (55,086)
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C
Shares sold 11,275 120,981
Shares issued for dividends reinvested 1,605 3,205
Shares redeemed (8,800) (114,721)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 4,080 9,465
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single fund share. Total return shows how much your investment in the fund would
have increased (or decreased) during each period, assuming you had reinvested
all dividends and distributions. These figures have been derived from the fund's
financial statements.
Six Months Ended
July 31, 1999 Year Ended January 31,
-----------------------------------------
CLASS A SHARES (Unaudited) 1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning
<S> <C> <C> <C> <C> <C> <C>
of period 12.78 13.00 12.58 12.97 12.24 13.64
Investment Operations:
Investment income--net .26 .56 .60 .65 .67 .72
Net realized and unrealized
gain (loss) on investments (.66) .12 .53 (.24) 1.02 (.80)
Total from Investment Operations (.40) .68 1.13 .41 1.69 (.08)
Distributions:
Dividends from investment
income--net (.26) (.56) (.61) (.64) (.67) (.72)
Dividends from net realized gain
on investments (.06) (.34) (.10) (.16) (.29) (.60)
Total Distributions (.32) (.90) (.71) (.80) (.96) (1.32)
Net asset value, end of period 12.06 12.78 13.00 12.58 12.97 12.24
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (A) (6.27)(b) 5.39 9.27 3.31 14.15 (4.34)
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .97(b) .94 .95 .92 .93 .90
Ratio of net investment income
to average net assets 4.24(b) 4.36 4.71 5.18 5.22 5.72
Decrease reflected in above
expense ratios due to
undertakings by the Manager -- -- -- -- -- .02
Portfolio Turnover Rate 41.92(c) 101.36 103.75 39.76 92.42 37.39
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 134,446 144,855 152,416 163,030 185,187 191,939
(A) EXCLUSIVE OF SALES LOAD.
(B) ANNUALIZED.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
July 31, 1999 Year Ended January 31,
---------------------------------------------------------------
CLASS B SHARES (Unaudited) 1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning
of period 12.79 13.01 12.59 12.98 12.25 13.64
Investment Operations:
Investment income--net .23 .50 .53 .59 .60 .65
Net realized and unrealized
gain (loss) on investments (.66) .12 .53 (.25) 1.02 (.79)
Total from Investment Operations (.43) .62 1.06 .34 1.62 (.14)
Distributions:
Dividends from investment
income--net (.23) (.50) (.54) (.57) (.60) (.65)
Dividends from net realized gain
on investments (.06) (.34) (.10) (.16) (.29) (.60)
Total Distributions (.29) (.84) (.64) (.73) (.89) (1.25)
Net asset value, end of period 12.07 12.79 13.01 12.59 12.98 12.25
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (A) (6.78)(b) 4.86 8.69 2.79 13.55 (4.77)
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets 1.48(b) 1.45 1.46 1.44 1.45 1.42
Ratio of net investment income
to average net assets 3.72(b) 3.85 4.18 4.66 4.69 5.17
Decrease reflected in above
expense ratios due to
undertakings by the Manager -- -- -- -- -- .02
Portfolio Turnover Rate 41.92(c) 101.36 103.75 39.76 92.42 37.39
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 18,237 23,810 24,942 20,341 21,530 18,981
(A) EXCLUSIVE OF SALES LOAD.
(B) ANNUALIZED.
(C) NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
July 31, 1999 Year Ended January 31,
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CLASS C SHARES (Unaudited) 1999 1998 1997 1996(a)
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PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 12.82 13.04 12.61 12.98 12.98
Investment Operations:
Investment income--net .22 .47 .50 .54 .37
Net realized and unrealized gain (loss)
on investments (.66) .12 .53 (.21) .29
Total from Investment Operations (.44) .59 1.03 .33 .66
Distributions:
Dividends from investment income--net (.22) (.47) (.50) (.54) (.37)
Dividends from net realized gain
on investments (.06) (.34) (.10) (.16) (.29)
Total Distributions (.28) (.81) (.60) (.70) (.66)
Net asset value, end of period 12.10 12.82 13.04 12.61 12.98
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TOTAL RETURN (%) (B) (6.98)(c) 4.63 8.42 2.67 7.90(c)
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.72(c) 1.67 1.68 1.77 4.42(c)
Ratio of net investment income
to average net assets 3.48(c) 3.68 3.92 4.33 4.31(c)
Portfolio Turnover Rate 41.92(d) 101.36 103.75 39.76 92.42
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Net Assets, end of period
($ X 1,000) 1,216 1,236 1,135 1,029 1
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(A) FROM JUNE 2, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO JANUARY 31, 1996.
(B) EXCLUSIVE OF SALES LOAD.
(C) ANNUALIZED.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
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NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier California Municipal Bond Fund (the "fund") is registered under
the Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end management investment company. The fund's investment objective is to
maximize current income exempt from Federal and State of California personal
income taxes to the extent consistent with the preservation of capital. The
Dreyfus Corporation (the "Manager") serves as the fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund' s shares. The fund is authorized to issue an unlimited number of $.001 par
value shares in the following classes of shares: Class A, Class B and Class C.
Class A shares are subject to a sales charge imposed at the time of purchase,
Class B shares are subject to a contingent deferred sales charge ("CDSC")
imposed on Class B redemptions made within six years of purchase (five years for
shareholders beneficially owning Class B shares on November 30, 1996) and Class
C shares are subject to a CDSC imposed on Class C shares redeemed within one
year of purchase. Other differences between the classes include the services
offered to and the expenses borne by each class and certain voting rights.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service (the "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 The Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
evaluation of the market for such securities) . Other investments (which
constitute a majority of the portfolio securities) are carried at fair value as
determined by the Service, based on methods which include consideration of:
yields or prices of municipal securities of comparable quality, coupon, maturity
and type; indications as to values from dealers; and general market conditions.
Options and financial futures on municipal and U.S. treasury securities are
valued at the last sales price on the securities exchange on which such
securities are primarily traded or at the last sales price on the national
securities market on each business day. Investments not listed on an exchange or
the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked prices.
Bid price is used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the fund received net earnings credits of $4,701 during the period
ended July 31, 1999 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
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
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the Internal Revenue Code of 1986, as amended (the "Code"). To the extent that
net realized capital gain can be offset by capital loss carryovers, if any, it
is the policy of the fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended July
31, 1999, the fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .55 of 1% of the value of the fund's average
daily net assets and is payable monthly.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, retained
$201 during the period ended July 31, 1999, from commissions earned on sales of
the fund's shares.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act,
Class B and Class C shares pay the Distributor for distributing their shares at
an annual rate of .50 of 1% of the value of the average daily net assets of
Class B shares and .75 of 1% of the value of the average daily net assets of
Class C shares. During the period ended July 31, 1999, Class B and Class C
shares were charged $49,925 and $4,560, respectively, pursuant to the
Distribution Plan.
The Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(C) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay
the Distributor at an annual rate of .25 of 1% of the value of their average
daily net assets for the provision of certain services. The services provided
may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the 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 period ended July 31, 1999, Class A, Class B and Class C
shares were charged $174,779, $24,963 and $1,520, respectively, pursuant to the
Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended July 31, 1999, the fund was charged $33,828 pursuant to the transfer
agency agreement.
(D) Each trustee who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $2,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended July 31, 1999, amounted to
$63,522,298 and $64,492,314, respectively.
At July 31, 1999, accumulated net unrealized depreciation on investments was
$139,879, consisting of $3,713,066 gross unrealized appreciation and $3,852,945
gross unrealized depreciation.
At July 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
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For More Information
Dreyfus 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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 023SA997
