Dreyfus Premier
California Municipal
Bond Fund
SEMIANNUAL REPORT July 31, 2000
(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
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
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, 2000 through
July 31, 2000. Inside you'll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Joseph Darcy.
The U.S. economy grew strongly over the past six months in an environment
characterized by high levels of consumer spending and low levels of
unemployment. Concerns that inflationary pressures might reemerge caused the
Federal Reserve Board to raise short-term interest rates three times during the
reporting period.
Higher interest rates would normally lead to lower municipal bond prices.
However, supply-and-demand factors unique to the municipal bond market helped
constrain price erosion over the six-month period. Because of robust economic
growth, most municipalities had little need to borrow during the reporting
period, creating a reduced supply of new issues while demand from individual
investors strengthened. Despite several short-term rallies, municipal bond
averages remained relatively unchanged overall for the reporting period.
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 15, 2000
DISCUSSION OF FUND PERFORMANCE
Joseph Darcy, Portfolio Manager
How did Dreyfus Premier California Municipal Bond Fund perform during the
period?
For the six-month period ended July 31, 2000, the fund produced a total return
of 8.15% for Class A shares, 7.88% for Class B shares and 7.72% for Class C
shares.(1) In comparison, the fund' s peer group, as measured by the Lipper
California Municipal Debt Funds category average, achieved a 7.48% total return
for the same period.(2)
We attribute the fund' s strong performance to signs of an economic slowdown,
which have generally caused the municipal bond market to rally, and
supply-and-demand factors, which have generally caused prices of California
bonds to rise over the past six months.
What is the fund's investment approach?
The fund seeks to maximize current income exempt from federal and California
income taxes as is consistent with the preservation of capital. To achieve this
objective, 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 portfolio's average duration in anticipation of
temporary supply-and-demand changes. If we expect the supply of newly issued
bonds to increase temporarily, we may reduce the portfolio's average duration to
make cash available for the purchase of higher yielding securities. Conversely,
if we expect demand for The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
municipal bonds to surge at a time when we anticipate little issuance, we may
increase the portfolio'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 eight years, which is consistent with our peer group.
What other factors influenced the fund's performance?
The fund was positively influenced over the past six months by favorable
economic and market conditions. When the reporting period began on February 1,
2000, the U.S. economy was growing strongly, raising concerns that long-dormant
inflationary pressures might reemerge. In response, the Federal Reserve Board
(the "Fed" ) raised short-term interest rates three times during the reporting
period. Fewer housing starts, moderating growth and little change in the core
inflation rate may suggest that the Fed's restrictive monetary policies could be
near an end. As a result, the municipal bond market generally has rallied over
the past few months.
In addition, the effects of higher interest rates generally were offset by
continuing strength in the U.S. and California economies, which helped keep
municipal bond yields relatively low compared to taxable bonds for much of the
reporting period. California has enjoyed higher tax revenues so far in 2000,
curtailing the state's need to borrow and resulting in a sharply reduced supply
of securities compared to the same period in 1999. At the same time, demand for
municipal bonds has been very strong from individuals -- especially within the
high-tech community -- seeking to protect wealth created by the strong economy
and rising stock market. When demand rises and supply falls, prices of existing
bonds tend to move higher.
What is the fund's current strategy?
Our primary strategy has been to maintain the fund's average duration -- a
measure of sensitivity to changing interest rates -- in the 10-year range, which
is slightly longer than the average for our peer group. Bonds in this range have
been in strong demand among individual
investors seeking to avoid taxes on new wealth created in California's strong
economy. At the same time, the issuance of new bonds in this range fell sharply
during the six-month period, putting upward pressure on prices.
In addition, we have continued to focus on bonds that appeal to both individual
and institutional investors. Because the differences in yields between high
quality and lower quality securities have widened recently, municipal bonds with
strong credit ratings have performed better than lower rated bonds. However, in
our opinion, currently high yields among lower rated bonds may create attractive
buying opportunities. In our view, California' s robust economy and budget
surpluses may reduce the risks of investing in carefully selected lower rated
bonds, and we are therefore considering increasing our holdings in this area. Of
course, portfolio composition is subject to change at any time as we continue to
closely monitor California's fiscal health.
August 15, 2000
(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. RETURN
FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY THE DREYFUS
CORPORATION PURSUANT TO AN AGREEMENT IN EFFECT THROUGH JANUARY 31, 2001, AT
WHICH TIME IT MAY BE EXTENDED, TERMINATED OR MODIFIED. HAD THESE EXPENSES NOT
BEEN ABSORBED, THE FUND'S RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER INC.
The Fund
STATEMENT OF INVESTMENTS
STATEMENT OF INVESTMENTS
July 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--96.3% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--89.7%
Abag Finance Authority For Nonprofit Corporations,
<S> <C> <C>
MFHR (Central Park Apartments) 5.50%, 7/1/2019 1,010,000 983,326
Alameda Corridor Transportation Authority, Transit Revenue
4.75%, 10/1/2025 (Insured; MBIA) 2,000,000 1,770,660
California:
6.125%, 10/1/2011 (Insured; FGIC) 2,875,000 3,239,579
4.75%, 2/1/2020 3,000,000 2,711,310
California Educational Facilities Authority, College and University
Revenue:
(Claremont University Center) 5.25%, 3/1/2018 3,070,000 3,012,867
(Stanford University) 5.125%, 1/1/2031 1,055,000 991,647
California Health Facilities Financing Authority, Revenue
(Cedars-Sinai Medical Center) 6.25%, 12/1/2034 5,210,000 5,343,376
California Housing Finance Agency, Home Mortgage Revenue:
6.15%, 8/1/2016 3,000,000 3,037,770
6.70%, 8/1/2025 1,195,000 1,222,724
7.60%, 8/1/2030 590,000 601,800
California Public Works Board, LR
(Secretary of State) 6.50%, 12/1/2008 (Insured; AMBAC) 1,400,000 1,598,436
California Statewide Communities Development Authority, LR
(United Airlines Inc.):
5.70%, 10/1/2033 (Guaranteed; United Airlines Inc.) 5,000,000 4,495,150
5.625%, 10/1/2034 (Guaranteed; United Airlines Inc.) 7,000,000 6,215,020
Capistrano Unified School District (Unified School Facilities
Improvement District Number 1)
6%, 8/1/2024 (Insured; FGIC) 2,075,000 2,185,182
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 1,587,932
Contra Costa County Water District, Water Revenue
6%, 10/1/2011 (Insured; MBIA) 1,475,000 1,570,123
Delano, COP ( Delano Regional Medical Center)
5.25%, 1/1/2018 3,500,000 2,823,940
East Bay Municipal Utility District, Water System Revenue
5.25%, 6/1/2017 1,260,000 1,248,106
Escondido Improvement Board 5.70%, 9/2/2026 995,000 920,992
Fontana, Special Tax (Senior Community Facilities District
Number 2) 5.25%, 9/1/2017 (Insured; MBIA) 3,910,000 3,864,214
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Fontana Public Financing Authority, Tax Allocation Revenue
(North Fontana Redevelopment Project) 7.25%, 9/1/2020 4,250,000 4,338,017
High Desert Memorial Health Care District, Revenue
5.40%, 10/1/2011 2,500,000 2,251,625
Los Angeles Department of Water and Power, Waterworks
Revenue 5%, 10/15/2015 (Insured; MBIA) 1,245,000 1,223,449
Madera County, COP (Valley Children's Hospital):
6.50%, 3/15/2008 (Insured; MBIA) 3,165,000 3,568,348
6.50%, 3/15/2009 (Insured; MBIA) 3,370,000 3,822,591
Metropolitan Water District of Southern California, Waterworks
Revenue 4.75%, 7/1/2022 7,925,000 7,057,371
Napa County Flood Protection and Watershed Improvement
Authority 5%, 6/15/2018 (Insured; FGIC) 5,000,000 4,780,500
Natamos Unified School District
5.95%, 9/1/2021 (Insured; MBIA) 2,500,000 2,673,325
Nevada County, COP (Western Nevada Co. Solid Waste-
McCourtney Road Landfill) 7.50%, 6/1/2021 2,200,000 2,205,082
Northern California Power Agency, Public Power Revenue
(Hydroelectric Project No. 1)
6.30%, 7/1/2018 (Insured; MBIA) 6,000,000 6,729,240
Pasadena Unified School District
5.125%, 7/1/2015 (Insured; FGIC) 1,500,000 1,498,380
Riverside County, SFMR 7.80%, 5/1/2021 1,250,000 1,578,488
San Diego County, COP (Burnham Institute)
6.25%, 9/1/2029 2,800,000 2,814,252
San Diego Unified School District
Zero Coupon, 7/1/2017 (Insured; FGIC) 2,325,000 911,144
San Joaquin Hills Transportation Corridor Agency, Toll
Road Revenue 5.50%, 1/15/2028 6,600,000 6,022,236
San Marino Unified School District 5.25%, 7/1/2013 1,160,000 1,204,672
San Mateo County Transportation District, Sales Tax Revenue
5%, 6/1/2019 (Insured; FSA) 5,555,000 5,259,418
Santa Monica-Malibu Unified School District
5.25%, 8/1/2018 4,325,000 4,327,509
Vista, MFHR (Vista Hacienda Project) 6.95%, 4/1/2017 3,000,000 3,103,170
West Covina Redevelopment Agency, Community Facilities
District Special Tax 6%, 9/1/2022 3,000,000 3,156,690
The Fund
STATEMENT OF INVESTMENTS (Unaudited)(CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. RELATED--6.6%
Puerto Rico Commonwealth Highway and Transportation
Authority, Revenue 5.50%, 7/1/2013 (Insured; MBIA) 4,750,000 4,980,707
Virgin Islands Public Finance Authority, Revenue
7.30%, 10/1/2018 3,100,000 3,724,743
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $128,134,656) 126,655,111
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL INVESTMENT--1.5%
------------------------------------------------------------------------------------------------------------------------------------
California Pollution Control Finance Authority, PCR,
VRDN (Pacific Gas and Electric)
4.25% (LOC; KBC Bank N.V.)
(cost $2,000,000) 2,000,000 (a) 2,000,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $130,134,656) 97.8% 128,655,111
CASH AND RECEIVABLES (NET) 2.2% 2,957,620
NET ASSETS 100.0% 131,612,731
</TABLE>
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
FGIC Financial Guaranty Insurance
Company
FSA Financial Security Assurance
LOC Letter of Credit
LR Lease Revenue
MBIA Municipal Bond Investors
Assurance Insurance
Corporation
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
VRDN Variable Rate Demand Notes
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 48.0
AA Aa AA 16.9
A A A 7.4
BBB Baa BBB 22.0
BB Ba BB 1.7
F1 Mig1 SP1 1.5
Not Rated (b) Not Rated (b) Not Rated (b) 2.5
100.0
(A) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE-SUBJECT TO PERIODIC CHANGE.
(B) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
July 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 130,134,656 128,655,111
Cash 880,472
Interest receivable 2,020,392
Receivable for shares of Beneficial Interest subscribed 223,306
Prepaid expenses 10,934
131,790,215
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 92,220
Payable for shares of Beneficial Interest redeemed 37,725
Accrued expenses and other liabilities 47,539
177,484
--------------------------------------------------------------------------------
NET ASSETS ($) 131,612,731
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 135,993,690
Accumulated net realized gain (loss) on investments (2,901,414)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (1,479,545)
--------------------------------------------------------------------------------
NET ASSETS ($) 131,612,731
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class C
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Assets ($) 118,797,882 11,290,257 1,524,592
Shares Outstanding 10,109,998 960,428 129,273
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 11.75 11.76 11.79
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Six Months Ended July 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 3,744,771
EXPENSES:
Management fee--Note 3(a) 352,308
Shareholder servicing costs--Note 3(c) 201,465
Distribution fees--Note 3(b) 35,482
Professional fees 27,226
Trustees' fees and expenses--Note 3(d) 19,623
Registration fees 12,221
Custodian fees 6,506
Prospectus and shareholders' reports 6,021
Loan commitment fees--Note 2 491
Miscellaneous 9,648
TOTAL EXPENSES 670,991
Less--reduction in management fee due to
undertaking--Note 3(a) (15,062)
NET EXPENSES 655,929
INVESTMENT INCOME--NET 3,088,842
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (1,008,929)
Net unrealized appreciation (depreciation) on investments 8,044,300
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 7,035,371
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 10,124,213
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
July 31, 2000 Year Ended
(Unaudited) January 31, 2000
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 3,088,842 6,656,376
Net realized gain (loss) on investments (1,008,929) (1,900,088)
Net unrealized appreciation (depreciation) on
investments 8,044,300 (18,015,099)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 10,124,213 (13,258,811)
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (2,795,724) (5,916,290)
Class B shares (263,711) (695,413)
Class C shares (29,407) (44,673)
Net realized gain on investments:
Class A shares - (726,609)
Class B shares - (96,299)
Class C shares - (6,133)
TOTAL DIVIDENDS (3,088,842) (7,485,417)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 9,850,523 20,863,512
Class B shares 1,368,621 3,409,370
Class C shares 469,308 261,094
Dividends reinvested:
Class A shares 1,396,683 3,309,614
Class B shares 149,413 479,682
Class C shares 8,886 24,267
Cost of shares redeemed:
Class A shares (14,668,506) (34,935,821)
Class B shares (4,411,190) (11,767,653)
Class C shares (199,616) (187,714)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS (6,035,878) (18,543,649)
TOTAL INCREASE (DECREASE) IN NET ASSETS 999,493 (39,287,877)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 130,613,238 169,901,115
END OF PERIOD 131,612,731 130,613,238
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
July 31, 2000 Year Ended
(Unaudited) January 31, 2000
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(A)
Shares sold 856,519 1,742,064
Shares issued for dividends reinvested 121,633 277,244
Shares redeemed (1,284,082) (2,936,467)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (305,930) (917,159)
--------------------------------------------------------------------------------
CLASS B(A)
Shares sold 119,252 286,524
Shares issued for dividends reinvested 13,013 39,981
Shares redeemed (385,810) (974,196)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (253,545) (647,691)
--------------------------------------------------------------------------------
CLASS C
Shares sold 41,401 21,843
Shares issued for dividends reinvested 770 1,985
Shares redeemed (17,561) (15,619)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 24,610 8,209
(A) DURING THE PERIOD ENDED JULY 31, 2000, 175,781 CLASS B SHARES REPRESENTING
$2,027,686 WERE AUTOMATICALLY CONVERTED TO 175,905 CLASS A SHARES AND DURING THE
PERIOD ENDED JANUARY 31, 2000, 682,104 CLASS B SHARES REPRESENTING $8,281,050
WERE AUTOMATICALLY CONVERTED TO 682,636 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Six Months Ended
July 31, 2000 Year Ended January 31,
----------------------------------------------------------------
CLASS A SHARES (Unaudited) 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning
<S> <C> <C> <C> <C> <C> <C>
of period 11.13 12.78 13.00 12.58 12.97 12.24
Investment Operations:
Investment income--net .28 .54 .56 .60 .65 .67
Net realized and unrealized
gain (loss) on investments .62 (1.59) .12 .53 (.24) 1.02
Total from Investment Operations .90 (1.05) .68 1.13 .41 1.69
Distributions:
Dividends from investment
income--net (.28) (.54) (.56) (.61) (.64) (.67)
Dividends from net realized
gain on investments -- (.06) (.34) (.10) (.16) (.29)
Total Distributions (.28) (.60) (.90) (.71) (.80) (.96)
Net asset value, end of period 11.75 11.13 12.78 13.00 12.58 12.97
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(A) 16.34(b) (8.42) 5.39 9.27 3.31 14.15
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .97(b) .95 .94 .95 .92 .93
Ratio of net investment income
to average net assets 4.86(b) 4.47 4.36 4.71 5.18 5.22
Decrease reflected in above
expense ratios due to
undertakings by The
Dreyfus Corporation .02(b) -- -- -- -- --
Portfolio Turnover Rate 2.36(c) 54.74 101.36 103.75 39.76 92.42
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 118,798 115,926 144,855 152,416 163,030 185,187
(A) EXCLUSIVE OF SALES CHARGE.
(B) ANNUALIZED.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
July 31, 2000 Year Ended January 31,
----------------------------------------------------------------
CLASS B SHARES (Unaudited) 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning
of period 11.14 12.79 13.01 12.59 12.98 12.25
Investment Operations:
Investment income--net .25 .47 .50 .53 .59 .60
Net realized and unrealized
gain (loss) on investments .62 (1.59) .12 .53 (.25) 1.02
Total from Investment Operations .87 (1.12) .62 1.06 .34 1.62
Distributions:
Dividends from investment
income--net (.25) (.47) (.50) (.54) (.57) (.60)
Dividends from net realized
gain on investments -- (.06) (.34) (.10) (.16) (.29)
Total Distributions (.25) (.53) (.84) (.64) (.73) (.89)
Net asset value, end of period 11.76 11.14 12.79 13.01 12.59 12.98
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(A) 15.80(b) (8.89) 4.86 8.69 2.79 13.55
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets 1.46(b) 1.46 1.45 1.46 1.44 1.45
Ratio of net investment income
to average net assets 4.37(b) 3.92 3.85 4.18 4.66 4.69
Decrease reflected in above
expense ratios due to
undertakings by The
Dreyfus Corporation .04(b) -- -- -- -- --
Portfolio Turnover Rate 2.36(c) 54.74 101.36 103.75 39.76 92.42
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 11,290 13,518 23,810 24,942 20,341 21,530
(A) EXCLUSIVE OF SALES CHARGE.
(B) ANNUALIZED.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
July 31, 2000 Year Ended January 31,
----------------------------------------------------------------
CLASS C SHARES (Unaudited) 2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning
<S> <C> <C> <C> <C> <C> <C>
of period 11.17 12.82 13.04 12.61 12.98 12.98
Investment Operations:
Investment income--net .24 .45 .47 .50 .54 .37
Net realized and unrealized gain (loss)
on investments .62 (1.59) .12 .53 (.21) .29
Total from Investment Operations .86 (1.14) .59 1.03 .33 .66
Distributions:
Dividends from investment
income--net (.24) (.45) (.47) (.50) (.54) (.37)
Dividends from net realized
gain on investments -- (.06) (.34) (.10) (.16) (.29)
Total Distributions (.24) (.51) (.81) (.60) (.70) (.66)
Net asset value, end of period 11.79 11.17 12.82 13.04 12.61 12.98
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 15.48(c) (9.07) 4.63 8.42 2.67 7.90(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets 1.69(c) 1.70 1.67 1.68 1.77 4.42(c)
Ratio of net investment income
to average net assets 4.09(c) 3.73 3.68 3.92 4.33 4.31(c)
Decrease reflected in above
expense ratios due to
undertakings by The
Dreyfus Corporation .04(c) -- -- -- -- --
Portfolio Turnover Rate 2.36(d) 54.74 101.36 103.75 39.76 92.42
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 1,525 1,169 1,236 1,135 1,029 1
A FROM JUNE 2, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO JANUARY 31, 1996.
B EXCLUSIVE OF SALES CHARGE.
C ANNUALIZED.
D NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
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., which is a wholly-owned
subsidiary of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Funds Sevices, Inc. was the distributor.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. Class B shares automatically convert to Class A shares after six
years. 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 The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
quoted bid prices are readily available and are representative of the bid side
of the market in the judgment of the Service are valued at the mean between the
quoted bid prices (as obtained by the Service from dealers in such securities)
and asked prices (as calculated by the Service based upon its evaluation of the
market for such securities). Other investments (which constitute a majority of
the portfolio securities) are carried at fair value as determined by the
Service, based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market on
each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is used
when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the fund received net earnings credits of $771 during the period
ended July 31, 2000, 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, if any, are normally declared and paid annually,
but the fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the fund not to distribute such gain.
(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.
The fund has an unused capital loss carryover of approximately $885,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to January 31, 2000. This amount
is calculated based on Federal income tax regulations which may differ from
financial reporting in accordance with generally accepted accounting principles.
If not applied, the carryover expires in fiscal 2008.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended July
31, 2000, the fund did not borrow under the Facility.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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. The Manager has undertaken from
February 1, 2000 through January 31, 2001, to reduce the management fee paid by
the fund to the extent that the fund's aggregate annual expenses, exclusive of
Rule 12b-1 Distribution Plan fees, taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed an annual rate of .97 of 1% of the value of the
fund' s average daily net assets. The reduction in management fee, pursuant to
the undertaking, amounted to $15,062 during the period ended July 31, 2000.
DSC retained $391 during the period ended July 31, 2000, from commissions earned
on sales of the fund's shares.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the distributor for distributing
their shares at an annual rate of .50 of 1% of the value of the average daily
net assets of Class B shares and .75 of 1% of the value of the average daily net
assets of Class C shares. During the period ended July 31, 2000, Class B and
Class C shares were charged $30,101 and $5,381, respectively, pursuant to the
Plan, of which $24,953 and $4,585 for Class B and Class C shares, respectively,
were paid to DSC.
(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, 2000, Class A, Class B and Class C
shares were
charged $143,296, $15,051 and $1,793, respectively, pursuant to the Shareholder
Services Plan, of which $120,332, $12,476 and $1,528 for Class A, Class B and
Class C shares, respectively, were paid to DSC.
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, 2000, the fund was charged $26,953 pursuant to the transfer
agency agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 13, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $50,000 and an attendance fee of $6,500 for each in person meeting
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The Chairman of the Board receives an additional 25% of such
compensation. Prior to April 13, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the fund an annual fee
of $2,500 and an attendance fee of $500 per meeting. The Chairman of the Board
received an additional 25% of such compensation. Subject to the fund's Emeritus
Program Guidelines, Emeritus Board members, if any, receive 50% of the fund's
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended July 31, 2000, amounted to
$2,933,352 and $5,202,504, respectively.
At July 31, 2000, accumulated net unrealized depreciation on investments was
$1,479,545, consisting of $3,400,353 gross unrealized appreciation and
$4,879,898 gross unrealized depreciation.
At July 31, 2000, 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).
The Fund
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
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 023SA007
