-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DRNOZxpza+qDChVpjTYdIghAp2+iAPa/1JPBs9VkzegcG6on9OiZbV+c1sA1V8rI 0ljUsy+zcS9H4DHliJ491g== 0000797923-01-000001.txt : 20010329 0000797923-01-000001.hdr.sgml : 20010329 ACCESSION NUMBER: 0000797923-01-000001 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010131 FILED AS OF DATE: 20010328 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0000797925 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: NY FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04766 FILM NUMBER: 1581176 BUSINESS ADDRESS: STREET 1: 144 GLENN CURTISS BLVD CITY: UNIONDALE STATE: NY ZIP: 11556 BUSINESS PHONE: 2129226805 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: PREMIER CALIFORNIA MUNICIPAL BOND FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PREMIER CALIFORNIA TAX EXEMPT BOND FUND DATE OF NAME CHANGE: 19910320 FORMER COMPANY: FORMER CONFORMED NAME: GARDEN CITY CALIFORNIA TAX EXEMPT BOND FUND DATE OF NAME CHANGE: 19860909 N-30D 1 0001.txt ANNUAL REPORT Dreyfus Premier California Municipal Bond Fund ANNUAL REPORT January 31, 2001 (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 Fund Performance 8 Statement of Investments 12 Statement of Assets and Liabilities 13 Statement of Operations 14 Statement of Changes in Net Assets 17 Financial Highlights 20 Notes to Financial Statements 26 Report of Independent Auditors 27 Important Tax Information 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 annual report for Dreyfus Premier California Municipal Bond Fund, covering the 12-month period from February 1, 2000 through January 31, 2001. 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. Recent events in the U.S. economy and financial markets suggest that the investment environment may be changing. For example, 2000 was a year of rising interest rates. The Federal Reserve Board increased short-term interest rates by one percentage point in the first half of the year, then held interest rates steady thereafter. In contrast, 2001 began with the Federal Reserve Board reducing interest rates by a total of one percentage point in two moves during January. Times of economic and market change are often good times to review your investment strategies. You may wish to consider rebalancing your portfolio to help maintain the allocations required to achieve your long-term financial goals. We encourage you to contact your financial advisor for more information about ways to refine your investment strategies in the current environment, or to speak with a Dreyfus customer service representative, call 1-800-782-6620. Thank you for your confidence and support. Sincerely, Stephen E. Canter President and Chief Investment Officer The Dreyfus Corporation February 15, 2001 DISCUSSION OF FUND PERFORMANCE Joseph Darcy, Portfolio Manager How did Dreyfus Premier California Municipal Bond Fund perform during the period? For the 12-month period ended January 31, 2001, the fund produced total returns of 15.54% for Class A shares, 14.86% for Class B shares and 14.64% 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 14.26% total return for the same period.(2) We attribute the fund' s strong performance to slower economic growth, lower interest rates and supply-and-demand factors, which have caused prices of California bonds to rise more than those of other states' municipal bonds. What is the fund's investment approach? The fund seeks as high a level of current income exempt from federal and California state 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 municipal bonds to surge at a time when we anticipate little issuance, we may increase the portfolio's average duration to maintain current The Fund DISCUSSION OF FUND PERFORMANCE (CONTINUED) 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? At the start of the reporting period, the Federal Reserve Board (the "Fed") attempted to slow the U.S. economy and keep inflation at bay by raising short-term interest rates. By summer, evidence had emerged that these rate hikes were beginning to have the desired effect of slowing the economy. As a result, tax-exempt yields began to decline and the Fed left interest rates unchanged at subsequent meetings. Later in the year, the economic slowdown became more pronounced, with annualized growth between October and December slowing to just 1.4%, the lowest in more than five years. Accordingly, in early January 2001 the Fed moved aggressively to stimulate economic growth by cutting interest rates by 0.50 percentage points. This move was unusual in that it occurred between regularly scheduled meetings of the Fed' s Federal Open Market Committee. As further evidence of its resolve to prevent a recession, the Fed cut interest rates by another half-point at its scheduled meeting at the end of January. More significantly, the continuing strength of California's economy caused its municipal bond prices to rise higher than tax-exempt bonds from other states. California and many of its municipalities enjoyed higher tax revenues, resulting in a sharply reduced supply of securities. At the same time, tremendous demand from individuals, who were seeking to protect newly created wealth from stock market volatility, caused bond prices to rise. In this constructive environment, we focused on maximizing both income and total return. We found such opportunities primarily in bonds that we believed would soon appeal to individual investors, who represented the greatest source of market demand. At the start of the year, the fund concentrated on bonds in the 12- to 14-year maturity range. Individual investors soon focused on the same bonds, bidding up their prices. As these bonds became increasingly scarce, we anticipated shifting investor preferences by gradually moving to longer dated securities. By year-end, investors and the fund were focusing on bonds in the 15- to 20-year range. Within these maturity ranges, the fund emphasized credit quality, preferring highly rated, highly liquid issues. This strategy proved advantageous late in the year, when the economic slowdown caused prices of lower rated securities to decline. What is the fund's current strategy? After the market' s substantial rally, and as the fundamental economic environment for issuers becomes more challenging, we have recently intensified our focus on high quality securities. In addition, we are carefully monitoring economic events both nationally and in California, including California's energy crisis. While the fund has no direct investments in California' s power generating utilities, we are mindful of their potential effect on the state's otherwise relatively strong economy. February 15, 2001 (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 CHARGES 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, 2002, 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 FUND PERFORMANCE Comparison of change in value of $10,000 investment in Dreyfus Premier California Municipal Bond Fund Class A shares and the Lehman Brothers Municipal Bond Index ((+)) SOURCE: LIPPER INC. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS A SHARES OF DREYFUS PREMIER CALIFORNIA MUNICIPAL BOND FUND ON 1/31/91 TO A $10,000 INVESTMENT MADE IN THE LEHMAN BROTHERS MUNICIPAL BOND INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS B AND CLASS C SHARES WILL VARY FROM THE PERFORMANCE OF CLASS A SHARES SHOWN ABOVE DUE TO DIFFERENCES IN CHARGES AND EXPENSES. THE FUND INVESTS PRIMARILY IN CALIFORNIA MUNICIPAL SECURITIES AND ITS PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM INITIAL SALES CHARGE ON CLASS A SHARES AND ALL OTHER APPLICABLE FEES AND EXPENSES. THE LEHMAN BROTHERS MUNICIPAL BOND INDEX IS NOT LIMITED TO INVESTMENTS PRINCIPALLY IN CALIFORNIA MUNICIPAL OBLIGATIONS AND DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. THE LEHMAN BROTHERS MUNICIPAL BOND INDEX, UNLIKE THE FUND, IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR THE LONG-TERM, INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED TAX-EXEMPT BOND MARKET, CALCULATED BY USING MUNICIPAL BONDS SELECTED TO BE REPRESENTATIVE OF THE MUNICIPAL MARKET OVERALL. THESE FACTORS CAN CONTRIBUTE TO THE INDEX POTENTIALLY OUTPERFORMING OR UNDERPERFORMING THE FUND. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
Average Annual Total Returns AS OF 1/31/01 Inception From Date 1 Year 5 Years 10 Years Inception - ------------------------------------------------------------------------------------------------------------------------------------ CLASS A SHARES WITH MAXIMUM SALES CHARGE (4.5%) 11/10/86 10.38% 3.75% 6.06% -- WITHOUT SALES CHARGE 11/10/86 15.54% 4.71% 6.55% -- CLASS B SHARES WITH APPLICABLE REDEMPTION CHARGE ((+)) 1/15/93 10.86% 3.83% -- 5.44% WITHOUT REDEMPTION 1/15/93 14.86% 4.16% -- 5.44% CLASS C SHARES WITH APPLICABLE REDEMPTION CHARGE ((+)(+)) 6/2/95 13.64% 3.96% -- 4.43% WITHOUT REDEMPTION 6/2/95 14.64% 3.96% -- 4.43% PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. ((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%. AFTER SIX YEARS CLASS B SHARES CONVERT TO CLASS A SHARES. ((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1% FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE. The Fund STATEMENT OF INVESTMENTS January 31, 2001 STATEMENT OF INVESTMENTS Principal LONG-TERM MUNICIPAL INVESTMENTS--97.8% Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA--88.0% Abag Finance Authority For Nonprofit Corporations, MFHR (Central Park Apartments) 5.50%, 7/1/2019 1,010,000 1,036,826 Alameda Corridor Transportation Authority, Revenue Zero Coupon, 10/1/2033 (Insured; MBIA) 2,500,000 428,200 California: 6.125%, 10/1/2011 (Insured; FGIC) 2,875,000 3,383,271 4.75%, 2/1/2020 3,000,000 2,901,180 California Educational Facilities Authority, College and University Revenue (Claremont University Center) 5.25%, 3/1/2018 3,070,000 3,160,718 California Health Facilities Financing Authority, Revenue (Cedars-Sinai Medical Center) 6.25%, 12/1/2034 5,210,000 5,513,795 California Housing Finance Agency, Home Mortgage Revenue: 6.15%, 8/1/2016 3,000,000 3,142,530 6.70%, 8/1/2025 1,060,000 1,098,542 California Public Works Board, LR (Secretary of State) 6.50%, 12/1/2008 (Insured; AMBAC) 1,400,000 1,651,342 California Statewide Communities Development Authority, LR (United Airlines Inc.): 5.70%, 10/1/2033 (Guaranteed; United Airlines Inc.) 5,000,000 4,579,650 5.625%, 10/1/2034 (Guaranteed; United Airlines Inc.) 7,000,000 6,333,250 Capistrano Unified School District (Unified School Facilities Improvement District Number 1) 6%, 8/1/2024 (Insured; FGIC) 2,075,000 2,292,294 Central California Joint Powers Health Financing Authority, COP (Community Hospitals of Central California) 6%, 2/1/2030 2,000,000 2,021,660 Contra Costa County Public Finance Authority, Tax Allocation Revenue (Pleasant Hill BART, North Richmond, Bay Point, Oakley and Rodeo Redevelopment Project Areas) 5.125%, 8/1/2019 1,750,000 1,660,785 Contra Costa County Water District, Water Revenue 6%, 10/1/2011 (Insured; MBIA) 1,475,000 1,608,310 Delano, COP (Delano Regional Medical Center) 5.25%, 1/1/2018 3,500,000 3,117,415 Escondido Improvement Board 5.70%, 9/2/2026 995,000 969,468 Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA (CONTINUED) Fontana, Special Tax (Senior Community Facilities District Number 2) 5.25%, 9/1/2017 (Insured; MBIA) 3,910,000 4,048,297 Fontana Public Financing Authority, Tax Allocation Revenue (North Fontana Redevelopment Project) 7.25%, 9/1/2020 4,250,000 4,338,868 High Desert Memorial Health Care District, Revenue 5.40%, 10/1/2011 2,500,000 2,333,900 Madera County, COP (Valley Children's Hospital): 6.50%, 3/15/2008 (Insured; MBIA) 3,165,000 3,679,756 6.50%, 3/15/2009 (Insured; MBIA) 3,370,000 3,960,660 Napa County Flood Protection and Watershed Improvement Authority 5%, 6/15/2018 (Insured; FGIC) 5,000,000 5,057,550 Natamos Unified School District 5.95%, 9/1/2021 (Insured; MBIA) 2,500,000 2,836,050 Nevada County, COP (Western Nevada Co. Solid Waste- McCourtney Road Landfill) 7.50%, 6/1/2021 2,200,000 2,203,740 Northern California Power Agency, Public Power Revenue (Hydroelectric Project No. 1) 6.30%, 7/1/2018 (Insured; MBIA) 6,000,000 7,160,700 Riverside County, SFMR 7.80%, 5/1/2021 1,250,000 1,662,388 San Diego County, COP (Burnham Institute) 6.25%, 9/1/2029 2,800,000 2,875,040 San Diego Unified School District Zero Coupon 7/1/2017 (Insured; FGIC) 2,325,000 1,013,049 San Francisco City and County, COP (Bruno Jail #3) 5.25%, 10/1/2021 (Insured; AMBAC) 4,485,000 4,574,969 San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue 5.50%, 1/15/2028 6,600,000 6,405,894 San Marino Unified School District 5.25%, 7/1/2013 1,160,000 1,276,278 San Mateo County Transportation District, Sales Tax Revenue 5%, 6/1/2019 (Insured; FSA) 5,555,000 5,579,109 Santa Monica-Malibu Unified School District 5.25%, 8/1/2018 3,725,000 3,979,082 University of California, Revenue 5.25%, 9/1/2027 2,500,000 2,528,425 Vista, MFHR (Vista Hacienda Project) 6.95%, 4/1/2017 3,000,000 3,108,660 The Fund STATEMENT OF INVESTMENTS (CONTINUED) Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA (CONTINUED) West Covina Redevelopment Agency, Community Facilities District Special Tax 6%, 9/1/2022 3,000,000 3,331,830 U.S. RELATED--9.8% Puerto Rico Commonwealth Highway and Transportation Authority, Revenue 5.50%, 7/1/2013 (Insured; MBIA) 4,750,000 5,281,667 Puerto Rico Commonwealth Infrastructure Financing Authority 5.375%, 10/1/2024 3,750,000 3,879,000 Virgin Islands Public Finance Authority, Revenue 7.30%, 10/1/2018 3,100,000 3,917,470 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (cost $125,246,339) 97.8% 129,931,618 CASH AND RECEIVABLES (NET) 2.2% 2,927,572 NET ASSETS 100.0% 132,859,190 The Fund
Summary of Abbreviations AMBAC American Municipal Bond Assurance Corporation COP Certificate of Participation FGIC Financial Guaranty Insurance Company FSA Financial Security Assurance LR Lease Revenue MBIA Municipal Bond Investors Assurance Insurance Corporation MFHR Multi-Family Housing Revenue SFMR Single Family Mortgage Revenue
Summary of Combined Ratings (Unaudited) Fitch or Moody's or Standard & Poor's Value (%) - ------------------------------------------------------------------------------------------------------------------------------------ AAA Aaa AAA 52.4 AA Aa AA 11.7 A A A 9.2 BBB Baa BBB 22.5 BB Ba BB 1.7 Not Rated (a) Not Rated( a) Not Rated (a) 2.5 100.0 (A) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED SECURITIES IN WHICH THE FUND MAY INVEST. SEE NOTES TO FINANCIAL STATEMENTS.
The Fund STATEMENT OF ASSETS AND LIABILITIES January 31, 2001 Cost Value - -------------------------------------------------------------------------------- ASSETS ($): Investments in securities--See Statement of Investments 125,246,339 129,931,618 Cash 720,508 Interest receivable 2,213,722 Receivable for shares of Beneficial Interest subscribed 227,732 Prepaid expenses 7,216 133,100,796 - -------------------------------------------------------------------------------- LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 108,427 Payable for shares of Beneficial Interest redeemed 66,804 Accrued expenses 66,375 241,606 - -------------------------------------------------------------------------------- NET ASSETS ($) 132,859,190 - -------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS ($): Paid-in capital 131,552,626 Accumulated net realized gain (loss) on investments (3,378,715) Accumulated net unrealized appreciation (depreciation) on investments--Note 4 4,685,279 - -------------------------------------------------------------------------------- NET ASSETS ($) 132,859,190
NET ASSET VALUE PER SHARE Class A Class B Class C - ------------------------------------------------------------------------------------------------------------------------ Net Assets ($) 119,130,242 12,171,284 1,557,664 Shares Outstanding 9,712,234 991,827 126,528 - ------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE ($) 12.27 12.27 12.31 SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS Year Ended January 31, 2001 - -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INTEREST INCOME 7,382,897 EXPENSES: Management fee--Note 3(a) 717,016 Shareholder servicing costs--Note 3(c) 402,271 Distribution fees--Note 3(b) 69,795 Professional fees 44,863 Trustees' fees and expenses--Note 3(d) 28,059 Registration fees 21,323 Custodian fees 13,808 Prospectus and shareholders' reports 13,654 Loan commitment fees--Note 2 1,254 Miscellaneous 14,659 TOTAL EXPENSES 1,326,702 Less--reduction in management fee due to undertaking--Note 3(a) (15,062) NET EXPENSES 1,311,640 INVESTMENT INCOME--NET 6,071,257 - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($): Net realized gain (loss) on investments (1,486,230) Net unrealized appreciation (depreciation) on investments 14,209,124 NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 12,722,894 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 18,794,151 SEE NOTES TO FINANCIAL STATEMENTS. The Fund STATEMENT OF CHANGES IN NET ASSETS Year Ended January 31, --------------------------------- 2001 2000 - -------------------------------------------------------------------------------- OPERATIONS ($): Investment income--net 6,071,257 6,656,376 Net realized gain (loss) on investments (1,486,230) (1,900,088) Net unrealized appreciation (depreciation) on investments 14,209,124 (18,015,099) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 18,794,151 (13,258,811) - -------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS FROM ($): Investment income--net: Class A shares (5,518,599) (5,916,290) Class B shares (493,784) (695,413) Class C shares (58,874) (44,673) Net realized gain on investments: Class A shares -- (726,609) Class B shares -- (96,299) Class C shares -- (6,133) TOTAL DIVIDENDS (6,071,257) (7,485,417) - -------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS ($): Net proceeds from shares sold: Class A shares 14,403,559 20,863,512 Class B shares 3,926,111 3,409,370 Class C shares 561,774 261,094 Dividends reinvested: Class A shares 2,768,910 3,309,614 Class B shares 272,348 479,682 Class C shares 18,015 24,267 Year Ended January 31, --------------------------------- 2001 2000 - -------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS ($) (CONTINUED): Cost of shares redeemed: Class A shares (25,401,696) (34,935,821) Class B shares (6,691,452) (11,767,653) Class C shares (334,511) (187,714) INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS (10,476,942) (18,543,649) TOTAL INCREASE (DECREASE) IN NET ASSETS 2,245,952 (39,287,877) - -------------------------------------------------------------------------------- NET ASSETS ($): Beginning of Period 130,613,238 169,901,115 END OF PERIOD 132,859,190 130,613,238 SEE NOTES TO FINANCIAL STATEMENTS. The Fund STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) Year Ended January 31, --------------------------------- 2001 2000 - -------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: CLASS A (A) Shares sold 1,235,869 1,742,064 Shares issued for dividends reinvested 235,520 277,244 Shares redeemed (2,175,083) (2,936,467) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (703,694) (917,159) - -------------------------------------------------------------------------------- CLASS B (A) Shares sold 331,025 286,524 Shares issued for dividends reinvested 23,212 39,981 Shares redeemed (576,383) (974,196) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (222,146) (647,691) - -------------------------------------------------------------------------------- CLASS C Shares sold 48,940 21,843 Shares issued for dividends reinvested 1,525 1,985 Shares redeemed (28,600) (15,619) NET INCREASE (DECREASE) IN SHARES OUTSTANDING 21,865 8,209 (A) DURING THE PERIOD ENDED JANUARY 31, 2001, 290,994 CLASS B SHARES REPRESENTING $3,408,997 WERE AUTOMATICALLY CONVERTED TO 291,176 CLASS A SHARES AND DURING THE PERIOD ENDED JANUARY 31, 2000, 682,104 CLASS B SHARES REPRESENTING $8,281,050 WERE AUTOMATICALLY CONVERTED TO 682,636 CLASS A SHARES. SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund's financial statements. Year Ended January 31, -------------------------------------------- CLASS A SHARES 2001 2000 1999 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 11.13 12.78 13.00 12.58 12.97 Investment Operations: Investment income--net .55 .54 .56 .60 .65 Net realized and unrealized gain (loss) on investments 1.14 (1.59) .12 .53 (.24) Total from Investment Operations 1.69 (1.05) .68 1.13 .41 Distributions: Dividends from investment income--net (.55) (.54) (.56) (.61) (.64) Dividends from net realized gain on investments -- (.06) (.34) (.10) (.16) Total Distributions (.55) (.60) (.90) (.71) (.80) Net asset value, end of period 12.27 11.13 12.78 13.00 12.58 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%)( A) 15.54 (8.42) 5.39 9.27 3.31 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .95 .95 .94 .95 .92 Ratio of net investment income to average net assets 4.71 4.47 4.36 4.71 5.18 Decrease reflected in above expense ratios due to undertakings by The Dreyfus Corporation .01 -- -- -- -- Portfolio Turnover Rate 12.58 54.74 101.36 103.75 39.76 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ X 1,000) 119,130 115,926 144,855 152,416 163,030 (A) EXCLUSIVE OF SALES CHARGE. SEE NOTES TO FINANCIAL STATEMENTS. The Fund FINANCIAL HIGHLIGHTS (CONTINUED) Year Ended January 31, -------------------------------------------- CLASS B SHARES 2001 2000 1999 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 11.14 12.79 13.01 12.59 12.98 Investment Operations: Investment income--net .49 .47 .50 .53 .59 Net realized and unrealized gain (loss) on investments 1.13 (1.59) .12 .53 (.25) Total from Investment Operations 1.62 (1.12) .62 1.06 .34 Distributions: Dividends from investment income--net (.49) (.47) (.50) (.54) (.57) Dividends from net realized gain on investments -- (.06) (.34) (.10) (.16) Total Distributions (.49) (.53) (.84) (.64) (.73) Net asset value, end of period 12.27 11.14 12.79 13.01 12.59 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) (A) 14.86 (8.89) 4.86 8.69 2.79 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets 1.45 1.46 1.45 1.46 1.44 Ratio of net investment income to average net assets 4.21 3.92 3.85 4.18 4.66 Decrease reflected in above expense ratios due to undertakings by The Dreyfus Corporation .02 -- -- -- -- Portfolio Turnover Rate 12.58 54.74 101.36 103.75 39.76 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ X 1,000) 12,171 13,518 23,810 24,942 20,341 (A) EXCLUSIVE OF SALES CHARGE. SEE NOTES TO FINANCIAL STATEMENTS. Year Ended January 31, -------------------------------------------- CLASS C SHARES 2001 2000 1999 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 11.17 12.82 13.04 12.61 12.98 Investment Operations: Investment income--net .47 .45 .47 .50 .54 Net realized and unrealized gain (loss) on investments 1.14 (1.59) .12 .53 (.21) Total from Investment Operations 1.61 (1.14) .59 1.03 .33 Distributions: Dividends from investment income--net (.47) (.45) (.47) (.50) (.54) Dividends from net realized gain on investments -- (.06) (.34) (.10) (.16) Total Distributions (.47) (.51) (.81) (.60) (.70) Net asset value, end of period 12.31 11.17 12.82 13.04 12.61 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) (A) 14.64 (9.07) 4.63 8.42 2.67 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets 1.69 1.70 1.67 1.68 1.77 Ratio of net investment income to average net assets 3.95 3.73 3.68 3.92 4.33 Decrease reflected in above expense ratios due to undertakings by The Dreyfus Corporation .02 -- -- -- -- Portfolio Turnover Rate 12.58 54.74 101.36 103.75 39.76 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ X 1,000) 1,558 1,169 1,236 1,135 1,029 (A) EXCLUSIVE OF SALES CHARGE. SEE NOTES TO FINANCIAL STATEMENTS.
The Fund NOTES TO FINANCIAL STATEMENTS 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 Services, Inc. was the distributor. The fund is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest 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 accounting principles generally accepted in the United States, 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 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 $7,215 during the period ended January 31, 2001, 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. The Fund NOTES TO FINANCIAL STATEMENTS (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, 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 $3,461,000 available for Federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to January 31, 2001. If not applied, $885,000 of the carryover expires in fiscal 2008 and $2,576,000 expires in fiscal 2009. 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 based on prevailing market rates in effect at the time of borrowings. During the period ended January 31, 2001, 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. The Manager has undertaken from February 1, 2000 through January 31, 2002, 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 fees, 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 January 31, 2001. DSC retained $3,454 during the period ended January 31, 2001, 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 January 31, 2001, Class B and Class C shares were charged $58,630 and $11,165, respectively, pursuant to the Plan, of which $53,482 and $10,369 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 The Fund NOTES TO FINANCIAL STATEMENTS (CONTINUED) 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 January 31, 2001, Class A, Class B and Class C shares were charged $292,880, $29,315 and $3,722, respectively, pursuant to the Shareholder Services Plan, of which $269,916, $26,740 and $3,457 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 January 31, 2001, the fund was charged $53,752 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 January 31, 2001, amounted to $15,784,339 and $20,450,264, respectively. At January 31, 2001, accumulated net unrealized appreciation on investments was $4,685,279, consisting of $6,884,411 gross unrealized appreciation and $2,199,132 gross unrealized depreciation. At January 31, 2001, 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 REPORT OF INDEPENDENT AUDITORS Shareholders and Board of Trustees Dreyfus Premier California Municipal Bond Fund We have audited the accompanying statement of assets and liabilities of Dreyfus Premier California Municipal Bond Fund, including the statement of investments, as of January 31, 2001, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund' s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and the financial highlights. Our procedures included confirmation of securities owned as of January 31, 2001 by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Premier California Municipal Bond Fund at January 31, 2001, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with accounting principles generally accepted in the United States. New York, New York March 7, 2001 IMPORTANT TAX INFORMATION (Unaudited) In accordance with Federal tax law, the fund hereby designates all the dividends paid from investment income-net during the fiscal year ended January 31, 2001 as "exempt interest dividends" (not subject to regular Federal and, for Individuals who are California residents, California personal income taxes). As required by Federal tax law rules, shareholders will receive notification of their portion of the fund' s taxable ordinary dividends and capital gains distributions paid for the 2001 calendar year on form 1099-DIV which will be mailed by January 31, 2002. The Fund NOTES 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) 2001 Dreyfus Service Corporation 023AR0101 EX-99.A 2 0002.txt PRESIDENT'S GRAPH OF THE ANNUAL REPORT Comparison of change in value of $10,000 investment in Dreyfus Premier California Municipal Bond Fund Class A shares and the Lehman Brothers Municipal Bond Index EXHIBIT A: PERIOD Dreyfus Premier California Lehmann Brothers Municipal Bond Fund Municipal (Class A Shares Bond Index* 1/31/91 9,547 10,000 1/31/92 10,503 11,091 1/31/93 11,530 12,181 1/31/94 13,101 13,675 1/31/95 12,532 13,188 1/31/96 14,305 15,173 1/31/97 14,779 15,755 1/31/98 16,149 17,348 1/31/99 17,019 18,502 1/31/00 15,586 17,830 1/31/01 18,007 20,199 *Source: Lipper Inc. -----END PRIVACY-ENHANCED MESSAGE-----