We are pleased to present this semiannual report for Dreyfus New York AMT-Free Municipal Bond Fund, covering the six-month period from December 1, 2016 through May 31, 2017. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.
Stocks advanced solidly, but higher-quality bonds produced more mildly positive returns over the reporting period amid heightened market volatility stemming from various economic and political developments. Equity markets reached a series of new highs in the wake of the November 2016 election’s unexpected outcome as investors revised their expectations for U.S. fiscal, regulatory, and tax policies, and the rally continued in December. Generally strong economic data and better-than-expected corporate earnings continued to support stock prices over the first five months of 2017. In the bond market, yields of U.S. government securities moved higher and prices fell early in the reporting period in anticipation of higher short-term U.S. interest rates and more stimulative fiscal policies, but they recouped previous losses when political uncertainty caused some of those expectations to moderate. In contrast, lower rated corporate-backed bonds advanced steadily in a more business-friendly market environment.
Some asset classes and industry groups seem likely to benefit from a changing economic and geopolitical landscape, while others probably will face challenges as conditions evolve. Consequently, selectivity may be key to investment success in the months ahead. As always, we encourage you to discuss the implications of our observations with your financial advisor.
Thank you for your continued confidence and support.
DISCUSSION OF FUND PERFORMANCE
For the period from December 1, 2016 through May 31, 2017, as provided by Thomas Casey and Daniel Rabasco, Portfolio Managers
Market and Fund Performance Overview
For the six-month period ended May 31, 2017, Dreyfus New York AMT-Free Municipal Bond Fund’s Class A shares produced a total return of 5.01%, Class C shares returned 4.62%, Class I shares returned 5.14%, and Class Y shares returned 5.11%.1 In comparison, the Bloomberg Barclays U.S. Municipal Bond Index (the “Index”), the fund’s benchmark index, which is composed of bonds issued nationally and not solely within New York, provided a total return of 5.16% for the same period.2
Municipal bonds fared well over the reporting period when long-term interest rates moderated and supply-and-demand dynamics changed. The fund produced returns that were roughly in line with the Index.
The Fund’s Investment Approach
The fund seeks to maximize current income exempt from federal, New York state, and New York city income taxes to the extent consistent with the preservation of capital. To pursue its goal, the fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in municipal bonds that provide income exempt from federal, New York state and New York city income taxes and the federal alternative minimum tax. The fund invests at least 70% of its assets in municipal bonds rated, at the time of purchase, investment grade (i.e., Baa/BBB or higher) or the unrated equivalent as determined by The Dreyfus Corporation. For additional yield, the fund may invest up to 30% of its assets in municipal bonds rated below investment grade (“high yield” or “junk” bonds) or the unrated equivalent as determined by The Dreyfus Corporation. The dollar-weighted average maturity of the fund’s portfolio normally exceeds 10 years, but the fund may invest without regard to maturity. A bond’s maturity is the length of time until the principal must be fully repaid with interest. Dollar-weighted average maturity is an average of the stated maturities of the securities held by the fund, based on their dollar-weighted proportions in the fund.
We focus on identifying undervalued sectors and securities. To select municipal bonds for the fund, we estimate and analyze the relative value of various sectors and securities and may actively trade among sectors and securities based on this analysis.
Supply-and-Demand Dynamics Buoyed Municipal Bonds
Volatility in the municipal bond market increased in the weeks prior to the start of the reporting period when issuers came to market with a flood of new securities in anticipation of short-term interest-rate hikes from the Federal Reserve Board. In addition, the unexpected election of a new presidential administration sparked uncertainty regarding potential changes in tax policy.
These negative trends reversed early in the reporting period, and municipal bonds rebounded from low valuations, more than recouping previous losses when the supply of newly issued securities moderated and demand increased as investors realized that tax reform will take time and political capital to enact. Indeed, the Index produced positive returns during all six months of the reporting period.
Although growth in tax revenues has slowed, and several states are facing pressure from underfunded pension systems, credit conditions have remained sound for most municipal bond issuers, including the state and city of New York.
3
DISCUSSION OF FUND PERFORMANCE (continued)
Long Duration Posture Supported Fund Results
The fund’s performance compared to the Index during the reporting period was generally supported by its interest-rate strategies. A relatively long average duration and an emphasis on municipal bonds with longer maturities proved detrimental during the market selloff early in the reporting period, but the same positioning helped the fund participate more fully in declining interest rates over the first five months of 2017.
Our sector allocation and security selection strategies also produced relatively strong results in general and relative to the Index. An emphasis on higher-yielding revenue-backed bonds and a correspondingly underweighted position in lower-yielding general obligation bonds enabled the fund to maintain a yield advantage over the Index. The fund achieved particularly favorable contributions from revenue bonds backed by airports and New York’s settlement of litigation with U.S. tobacco companies. The fund further benefited from lack of exposure to distressed Puerto Rico securities. These positions more than offset relatively weak results from municipal bonds backed by revenues from health care facilities, transportation projects, essential municipal services such as public power plants, and educational facilities.
Positioned for a Constructive Market Environment
The municipal bond market recently has shown signs of renewed strength. Investors who may have overreacted to the tax implications of the presidential election appear to have adopted a more balanced perspective. In addition, municipal bonds historically have proved less sensitive to rising short-term interest rates than U.S. Treasury securities with comparable maturities.
As of the end of the reporting period, we have maintained the fund’s emphasis on higher-yielding revenue-backed bonds. We also have retained relatively light exposure to general obligation bonds, which typically offer lower yields. We have continued to set the fund’s average duration in a modestly long position.
June 15, 2017
Bonds are subject generally to interest-rate, credit, liquidity, and market risks, to varying degrees, all of which are more fully described in the fund’s prospectus. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes, and rate increases can cause price declines.
The amount of public information available about municipal securities is generally less than that for corporate equities or bonds. Special factors, such as legislative changes, and state and local economic and business developments, may adversely affect the yield and/or value of the fund’s investments in municipal securities. Other factors include the general conditions of the municipal securities market, the size of the particular offering, the maturity of the obligation, and the rating of the issue. Changes in economic, business, or political conditions relating to a particular municipal project, municipality, or state in which the fund invests may have an impact on the fund’s share price.
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 C shares. Had these charges been reflected, returns would have been lower. Class I and Class Y are not subject to any initial or deferred sales charge. 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-New York residents. Capital gains, if any, are fully taxable.
2 Source: Lipper Inc. — The Bloomberg Barclays U.S. Municipal Bond Index covers the USD-denominated long-term tax-exempt bond market. Investors cannot invest directly in any index.
4
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus New York AMT-Free Municipal Bond Fund from December 1, 2016 to May 31, 2017. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.
| | | | | | | | | | | |
Expenses and Value of a $1,000 Investment |
assuming actual returns for the six months ended May 31, 2017 |
| | | | | | | |
| | | Class A | Class C | Class I | Class Y |
Expenses paid per $1,000† | | $4.80 | | $8.62 | | $3.58 | | $3.17 |
Ending value (after expenses) | | $1,050.10 | | $1,046.20 | | $1,051.40 | | $1,051.10 |
COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)
Using the SEC’s method to compare expenses
The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
| | | | | | | | | | | | |
Expenses and Value of a $1,000 Investment |
assuming a hypothetical 5% annualized return for the six months ended May 31, 2017 |
| | | | | | | |
| | | Class A | Class C | Class I | Class Y |
Expenses paid per $1,000† | | $4.73 | | $8.50 | | $3.53 | | $3.13 |
Ending value (after expenses) | | $1,020.24 | | $1,016.50 | | $1,021.44 | | $1,021.84 |
† Expenses are equal to the fund’s annualized expense ratio of .94% for Class A, 1.69% for Class C, .70% for Class I and .62% for Class Y, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
5
STATEMENT OF INVESTMENTS
May 31, 2017 (Unaudited)
| | | | | | | | | | |
| |
Long-Term Municipal Investments - 100.0% | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
New York - 98.7% | | | | | |
Build New York City Resource Corporation,
Revenue (The New York Methodist Hospital Project) | | 5.00 | | 7/1/29 | | 650,000 | | 747,377 | |
Build New York City Resource Corporation,
Revenue (YMCA of Greater New York Project) | | 5.00 | | 8/1/40 | | 1,000,000 | | 1,132,260 | |
Dutchess County Local Development Corp.,
Revenue (Health Quest Systems Inc., Project) | | 5.00 | | 7/1/32 | | 1,000,000 | | 1,159,690 | |
Dutchess County Local Development Corporation,
Revenue (Health Quest Systems Incorporated Project) | | 5.00 | | 7/1/35 | | 2,000,000 | | 2,288,560 | |
Dutchess County Local Development Corporation,
Revenue (Health Quest Systems, Inc. Project) | | 4.00 | | 7/1/41 | | 2,585,000 | | 2,658,388 | |
Glen Cove Local Economic Assistance Corporation,
Revenue (Garvies Point Public Improvement Project) | | 0.00 | | 1/1/45 | | 6,000,000 | a | 1,495,800 | |
Hempstead Local Development Corporation,
Revenue (Molloy College Project) | | 5.70 | | 7/1/29 | | 4,865,000 | | 5,256,389 | |
Hudson Yards Infrastructure Corporation,
Hudson Yards Senior Revenue | | 5.75 | | 2/15/47 | | 2,500,000 | | 2,851,300 | |
Hudson Yards Infrastructure Corporation Second Indenture,
Revenue | | 5.00 | | 2/15/39 | | 2,000,000 | | 2,351,140 | |
Long Island Power Authority,
Electric System General Revenue | | 1.58 | | 11/1/18 | | 1,000,000 | b | 1,004,420 | |
Long Island Power Authority,
Electric System General Revenue | | 5.00 | | 9/1/34 | | 1,500,000 | | 1,708,770 | |
Long Island Power Authority,
Electric System General Revenue | | 5.00 | | 9/1/36 | | 1,000,000 | | 1,160,460 | |
Long Island Power Authority,
Electric System General Revenue | | 5.00 | | 9/1/37 | | 1,700,000 | | 1,946,772 | |
Long Island Power Authority,
Electric System General Revenue (Prerefunded) | | 6.00 | | 5/1/19 | | 2,000,000 | c | 2,192,700 | |
Metropolitan Transportation Authority,
Dedicated Tax Fund Revenue | | 5.00 | | 11/15/27 | | 3,000,000 | | 3,543,750 | |
Metropolitan Transportation Authority,
Transportation Revenue | | 5.00 | | 11/15/23 | | 1,000,000 | | 1,183,620 | |
Metropolitan Transportation Authority,
Transportation Revenue | | 5.00 | | 11/15/28 | | 2,500,000 | | 2,928,825 | |
Metropolitan Transportation Authority,
Transportation Revenue | | 6.50 | | 11/15/28 | | 575,000 | | 622,190 | |
Metropolitan Transportation Authority,
Transportation Revenue | | 5.00 | | 11/15/30 | | 5,000,000 | | 5,887,250 | |
Metropolitan Transportation Authority,
Transportation Revenue | | 5.00 | | 11/15/32 | | 5,000,000 | | 5,713,250 | |
Metropolitan Transportation Authority,
Transportation Revenue | | 5.00 | | 11/15/34 | | 3,000,000 | | 3,348,540 | |
6
| | | | | | | | | | |
| |
Long-Term Municipal Investments - 100.0% (continued) | Coupon
Rate (%) | |
Maturity
Date
| | Principal
Amount ($) | | Value ($) | |
New York - 98.7% (continued) | | | | | |
Metropolitan Transportation Authority,
Transportation Revenue | | 5.00 | | 11/15/37 | | 4,000,000 | | 4,701,120 | |
Metropolitan Transportation Authority,
Transportation Revenue | | 5.00 | | 11/15/41 | | 1,755,000 | | 1,981,255 | |
Metropolitan Transportation Authority,
Transportation Revenue | | 5.00 | | 11/15/43 | | 6,210,000 | | 7,003,824 | |
Metropolitan Transportation Authority,
Transportation Revenue | | 5.25 | | 11/15/44 | | 2,000,000 | | 2,343,780 | |
Metropolitan Transportation Authority,
Transportation Revenue (Prerefunded) | | 6.50 | | 11/15/18 | | 110,000 | c | 119,009 | |
Metropolitan Transportation Authority,
Transportation Revenue (Prerefunded) | | 6.50 | | 11/15/18 | | 1,315,000 | c | 1,422,699 | |
Metropolitan Transportation Authority Hudson Rail Yards Trust,
Obligations Revenue | | 5.00 | | 11/15/51 | | 5,000,000 | | 5,444,500 | |
Monroe County Industrial Development Corp.,
Revenue (The Rochester General Hospital Projects) | | 5.00 | | 12/1/34 | | 1,100,000 | | 1,265,957 | |
Monroe County Industrial Development Corp.,
Revenue (The Rochester General Hospital Projects) | | 5.00 | | 12/1/35 | | 1,150,000 | | 1,319,441 | |
Monroe County Industrial Development Corporation,
Revenue (University of Rochester Project) | | 5.00 | | 7/1/36 | | 1,000,000 | | 1,196,940 | |
Monroe County Industrial Development Corporation,
Revenue (University of Rochester Project) | | 5.00 | | 7/1/43 | | 1,000,000 | | 1,136,620 | |
Monroe County Industrial Development Corporation,
Revenue (University of Rochester Project) (Prerefunded) | | 5.00 | | 7/1/21 | | 2,420,000 | c | 2,804,223 | |
Nassau County Local Economic Assistance Corporation,
Revenue (Winthrop-University Hospital Association Project) | | 5.00 | | 7/1/42 | | 1,000,000 | | 1,081,360 | |
New York City,
GO | | 5.25 | | 9/1/25 | | 1,000,000 | | 1,054,960 | |
New York City,
GO | | 5.00 | | 8/1/27 | | 5,000,000 | | 6,124,550 | |
New York City,
GO | | 5.00 | | 8/1/28 | | 4,000,000 | | 4,673,920 | |
New York City,
GO | | 5.00 | | 8/1/29 | | 5,000,000 | | 5,749,200 | |
New York City,
GO | | 5.00 | | 8/1/31 | | 4,000,000 | | 4,718,400 | |
New York City,
GO | | 5.00 | | 8/1/32 | | 3,940,000 | | 4,724,493 | |
New York City,
GO | | 5.00 | | 10/1/32 | | 730,000 | | 829,638 | |
New York City,
GO | | 5.00 | | 8/1/33 | | 12,240,000 | | 14,306,602 | |
7
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| | | | | | | | | | |
| |
Long-Term Municipal Investments - 100.0% (continued) | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
New York - 98.7% (continued) | | | | | |
New York City,
GO | | 5.00 | | 8/1/37 | | 3,500,000 | | 4,121,705 | |
New York City Educational Construction Fund,
Revenue | | 6.50 | | 4/1/25 | | 3,960,000 | | 4,728,359 | |
New York City Industrial Development Agency,
PILOT Revenue (Yankee Stadium Project) (Insured; Assured Guaranty Corp.) | | 7.00 | | 3/1/49 | | 5,000,000 | | 5,503,900 | |
New York City Municipal Water Finance Authority,
Water and Sewer System Second General Resolution Revenue | | 5.00 | | 6/15/31 | | 5,000,000 | | 6,001,850 | |
New York City Municipal Water Finance Authority,
Water and Sewer System Second General Resolution Revenue | | 5.00 | | 6/15/31 | | 3,000,000 | | 3,335,370 | |
New York City Municipal Water Finance Authority,
Water and Sewer System Second General Resolution Revenue | | 5.00 | | 6/15/34 | | 2,000,000 | | 2,329,800 | |
New York City Municipal Water Finance Authority,
Water and Sewer System Second General Resolution Revenue | | 5.00 | | 6/15/38 | | 3,595,000 | | 4,282,867 | |
New York City Municipal Water Finance Authority,
Water and Sewer System Second General Resolution Revenue | | 5.25 | | 6/15/40 | | 2,975,000 | | 3,222,103 | |
New York City Municipal Water Finance Authority,
Water and Sewer System Second General Resolution Revenue | | 5.50 | | 6/15/40 | | 2,500,000 | | 2,719,675 | |
New York City Municipal Water Finance Authority,
Water and Sewer System Second General Resolution Revenue | | 5.00 | | 6/15/45 | | 4,000,000 | | 4,465,480 | |
New York City Transitional Finance Authority,
Building Aid Revenue | | 5.00 | | 7/15/40 | | 3,000,000 | | 3,476,430 | |
New York City Transitional Finance Authority,
Building Aid Revenue | | 5.00 | | 7/15/43 | | 5,000,000 | | 5,728,000 | |
New York City Transitional Finance Authority,
Future Tax Secured Subordinate Revenue | | 5.00 | | 2/1/36 | | 2,000,000 | | 2,306,540 | |
New York City Transitional Finance Authority,
Future Tax Secured Subordinate Revenue | | 5.00 | | 11/1/38 | | 3,000,000 | | 3,379,230 | |
New York City Transitional Finance Authority,
Future Tax Secured Subordinate Revenue | | 5.00 | | 2/1/40 | | 4,000,000 | | 4,659,480 | |
8
| | | | | | | | | | |
| |
Long-Term Municipal Investments - 100.0% (continued) | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
New York - 98.7% (continued) | | | | | |
New York City Trust for Cultural Resources,
Revenue (American Museum of Natural History) | | 5.00 | | 7/1/32 | | 4,210,000 | | 4,985,271 | |
New York City Trust for Cultural Resources,
Revenue (The Museum of Modern Art) | | 4.00 | | 4/1/31 | | 2,500,000 | | 2,837,100 | |
New York Convention Center Development Corporation,
Revenue (Hotel Unit Fee Secured) (Credit Support Agreement; SONYMA) | | 5.00 | | 11/15/40 | | 1,250,000 | | 1,444,563 | |
New York Convention Center Development Corporation,
Senior Lien Revenue (Hotel Unit Fee Secured) | | 0.00 | | 11/15/47 | | 4,000,000 | a | 1,228,120 | |
New York Convention Center Development Corporation,
Senior Lien Revenue (Hotel Unit Fee Secured) | | 0.00 | | 11/15/50 | | 8,000,000 | a | 2,119,040 | |
New York Counties Tobacco Trust VI,
Tobacco Settlement Pass-Through Bonds | | 5.00 | | 6/1/45 | | 1,000,000 | | 1,071,210 | |
New York Liberty Development Corporation,
Liberty Revenue (4 World Trade Center Project) | | 5.00 | | 11/15/44 | | 3,000,000 | | 3,339,780 | |
New York Liberty Development Corporation,
Liberty Revenue (7 World Trade Center Project) | | 5.00 | | 9/15/40 | | 2,000,000 | | 2,278,540 | |
New York Liberty Development Corporation,
Revenue (3 World Trade Center Project) | | 5.00 | | 11/15/44 | | 5,000,000 | d | 5,376,200 | |
New York Liberty Development Corporation,
Revenue (Goldman Sachs Headquarters Issue) | | 5.25 | | 10/1/35 | | 2,000,000 | | 2,526,820 | |
New York State Dormitory Authority,
FHA-Insured Mortgage Hospital Revenue (Hospital for Special Surgery) | | 6.00 | | 8/15/38 | | 3,470,000 | | 3,833,552 | |
New York State Dormitory Authority,
Health Center Revenue (Guaranteed; SONYMA) | | 5.00 | | 11/15/19 | | 1,000,000 | | 1,003,400 | |
New York State Dormitory Authority,
Revenue (Consolidated City University System) (Insured; Assured Guaranty Municipal Corp.) | | 5.75 | | 7/1/18 | | 600,000 | | 616,890 | |
New York State Dormitory Authority,
Revenue (Cornell University) | | 5.00 | | 7/1/35 | | 2,000,000 | | 2,221,000 | |
New York State Dormitory Authority,
Revenue (Fordham University) | | 5.00 | | 7/1/41 | | 1,000,000 | | 1,160,550 | |
New York State Dormitory Authority,
Revenue (Icahn School of Medicine at Mount Sinai) | | 5.00 | | 7/1/40 | | 1,000,000 | | 1,125,010 | |
New York State Dormitory Authority,
Revenue (Memorial Sloan-Kettering Cancer Center) | | 5.00 | | 7/1/23 | | 1,350,000 | | 1,581,741 | |
New York State Dormitory Authority,
Revenue (Mount Sinai School of Medicine of New York University) (Prerefunded) | | 5.50 | | 7/1/19 | | 2,320,000 | c | 2,538,730 | |
New York State Dormitory Authority,
Revenue (New York University Hospitals Center) | | 5.00 | | 7/1/32 | | 500,000 | | 585,050 | |
9
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| | | | | | | | | | |
| |
Long-Term Municipal Investments - 100.0% (continued) | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
New York - 98.7% (continued) | | | | | |
New York State Dormitory Authority,
Revenue (New York University Hospitals Center) | | 5.00 | | 7/1/34 | | 2,500,000 | | 2,871,875 | |
New York State Dormitory Authority,
Revenue (New York University Hospitals Center) (Prerefunded) | | 5.50 | | 7/1/20 | | 1,000,000 | c | 1,133,350 | |
New York State Dormitory Authority,
Revenue (New York University) | | 5.00 | | 7/1/45 | | 3,540,000 | | 4,097,019 | |
New York State Dormitory Authority,
Revenue (New York University) (Prerefunded) | | 5.00 | | 7/1/19 | | 2,000,000 | c | 2,169,280 | |
New York State Dormitory Authority,
Revenue (North Shore - Long Island Jewish Obligated Group) | | 5.00 | | 5/1/43 | | 1,300,000 | | 1,474,135 | |
New York State Dormitory Authority,
Revenue (North Shore - Long Island Jewish Obligated Group) (Prerefunded) | | 5.50 | | 5/1/19 | | 2,000,000 | c | 2,175,360 | |
New York State Dormitory Authority,
Revenue (Orange Regional Medical Center Obligated Group) | | 5.00 | | 12/1/36 | | 1,700,000 | d | 1,883,328 | |
New York State Dormitory Authority,
Revenue (Orange Regional Medical Center Obligated Group) | | 5.00 | | 12/1/45 | | 1,400,000 | d | 1,521,002 | |
New York State Dormitory Authority,
Revenue (Rochester Institute of Technology) | | 5.00 | | 7/1/23 | | 2,000,000 | | 2,356,940 | |
New York State Dormitory Authority,
Revenue (Rochester Institute of Technology) (Prerefunded) | | 6.00 | | 7/1/18 | | 1,000,000 | c | 1,055,970 | |
New York State Dormitory Authority,
Revenue (State University of New York Dormitory Facilities) | | 5.00 | | 7/1/43 | | 2,500,000 | | 2,808,600 | |
New York State Dormitory Authority,
Revenue (The Bronx-Lebanon Hospital Center) (LOC; TD Bank) | | 6.50 | | 8/15/30 | | 2,000,000 | | 2,158,440 | |
New York State Dormitory Authority,
Revenue (The New School) (Prerefunded) | | 5.25 | | 7/1/20 | | 2,500,000 | c | 2,814,475 | |
New York State Dormitory Authority,
Revenue (The Rockefeller University) | | 5.00 | | 7/1/40 | | 4,000,000 | | 4,318,280 | |
New York State Dormitory Authority,
State Personal Income Tax Revenue (General Purpose) | | 5.00 | | 2/15/26 | | 1,730,000 | | 1,910,698 | |
New York State Dormitory Authority,
State Personal Income Tax Revenue (General Purpose) | | 5.00 | | 3/15/31 | | 5,000,000 | | 5,898,950 | |
New York State Dormitory Authority,
State Personal Income Tax Revenue (General Purpose) | | 5.00 | | 2/15/39 | | 2,000,000 | | 2,313,480 | |
New York State Dormitory Authority,
State Sales Tax Revenue | | 5.00 | | 3/15/44 | | 3,000,000 | | 3,437,280 | |
New York State Dormitory Authority,
Third General Resolution Revenue (State University Educational Facilities Issue) | | 5.00 | | 5/15/30 | | 2,000,000 | | 2,318,620 | |
10
| | | | | | | | | | |
| |
Long-Term Municipal Investments - 100.0% (continued) | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
New York - 98.7% (continued) | | | | | |
New York State Energy Research and Development Authority,
PCR (Niagara Mohawk Power Corporation Project) (Insured; National Public Finance Guarantee Corp.) | | 2.61 | | 12/1/25 | | 5,000,000 | b | 4,800,000 | |
New York State Environmental Facilities Corporation,
State Clean Water and Drinking Water Revolving Funds Revenue (New York City Municipal Water Finance Authority Projects - Second Resolution Bonds) | | 5.00 | | 6/15/27 | | 2,810,000 | | 3,425,559 | |
New York State Environmental Facilities Corporation,
State Clean Water and Drinking Water Revolving Funds Revenue (New York City Municipal Water Finance Authority Projects - Second Resolution Bonds) | | 5.00 | | 6/15/29 | | 2,470,000 | | 2,748,814 | |
New York State Environmental Facilities Corporation,
State Clean Water and Drinking Water Revolving Funds Revenue (New York City Municipal Water Finance Authority Projects - Second Resolution Bonds) | | 5.00 | | 6/15/41 | | 5,000,000 | | 5,992,250 | |
New York State Environmental Facilities Corporation,
State Revolving Funds Revenue (Master Financing Program) | | 5.00 | | 5/15/30 | | 2,000,000 | | 2,363,940 | |
New York State Mortgage Agency,
Mortgage Revenue | | 5.00 | | 4/1/28 | | 270,000 | | 284,210 | |
New York State Power Authority,
Revenue | | 5.00 | | 11/15/31 | | 1,000,000 | | 1,151,760 | |
New York State Thruway Authority,
General Revenue | | 5.00 | | 1/1/42 | | 1,500,000 | | 1,693,305 | |
New York State Thruway Authority,
General Revenue (Insured; National Public Finance Guarantee Corp.) | | 5.00 | | 1/1/27 | | 5,000,000 | | 5,115,400 | |
New York State Thruway Authority,
General Revenue Junior Indebtedness Obligations | | 5.00 | | 1/1/41 | | 1,000,000 | | 1,150,330 | |
New York State Thruway Authority,
Second General Highway and Bridge Trust Fund Bonds | | 5.00 | | 4/1/26 | | 2,500,000 | | 2,767,875 | |
Niagara Tobacco Asset Securitization Corporation,
Tobacco Settlement Asset-Backed Bonds | | 5.25 | | 5/15/34 | | 2,000,000 | | 2,252,500 | |
Niagara Tobacco Asset Securitization Corporation,
Tobacco Settlement Asset-Backed Bonds | | 5.25 | | 5/15/40 | | 1,750,000 | | 1,951,302 | |
Port Authority of New York and New Jersey,
(Consolidated Bonds, 163rd Series) | | 5.00 | | 7/15/35 | | 5,000,000 | | 5,508,500 | |
Port Authority of New York and New Jersey,
(Consolidated Bonds, 179th Series) | | 5.00 | | 12/1/25 | | 2,000,000 | | 2,426,340 | |
Port Authority of New York and New Jersey,
(Consolidated Bonds, 183rd Series) | | 5.00 | | 12/15/26 | | 3,000,000 | | 3,641,790 | |
Port Authority of New York and New Jersey,
(Consolidated Bonds, 184th Series) | | 5.00 | | 9/1/36 | | 2,500,000 | | 2,930,075 | |
11
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| | | | | | | | | | |
| |
Long-Term Municipal Investments - 100.0% (continued) | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
New York - 98.7% (continued) | | | | | |
Port Authority of New York and New Jersey,
(Consolidated Bonds, 184th Series) | | 5.00 | | 9/1/39 | | 2,000,000 | | 2,316,660 | |
Port Authority of New York and New Jersey,
(Consolidated Bonds, 93rd Series) | | 6.13 | | 6/1/94 | | 1,955,000 | | 2,394,875 | |
Port Authority of New York and New Jersey,
Special Project Bonds (JFK International Air Terminal LLC Project) | | 6.00 | | 12/1/36 | | 2,000,000 | | 2,260,300 | |
Sales Tax Asset Receivable Corporation,
Sales Tax Asset Revenue | | 5.00 | | 10/15/31 | | 1,000,000 | | 1,200,870 | |
Suffolk County Economic Development Corporation,
Revenue (Catholic Health Services of Long Island Obligated Group Project) | | 5.00 | | 7/1/22 | | 1,000,000 | | 1,132,610 | |
Suffolk Tobacco Asset Securitization Corporation,
Tobacco Settlement Asset-Backed Bonds | | 6.00 | | 6/1/48 | | 5,000,000 | | 5,064,500 | |
Tender Option Bond Trust Receipts (Series 2016-XM0367),
(New York State Dormitory Authority, Revenue (The Rockefeller University)) Non-recourse | | 5.00 | | 7/1/18 | | 4,000,000 | d,e | 4,433,040 | |
Tender Option Bond Trust Receipts (Series 2016-XM0382),
(New York City Transitional Finance Authority, Future Tax Secured Subordinate Revenue) Non-recourse | | 5.00 | | 5/1/21 | | 10,000,000 | d,e | 11,408,200 | |
Triborough Bridge and Tunnel Authority,
General Purpose Revenue (Prerefunded) | | 5.50 | | 1/1/22 | | 2,000,000 | c | 2,384,360 | |
Triborough Bridge and Tunnel Authority,
General Revenue (MTA Bridges and Tunnels) | | 5.00 | | 11/15/27 | | 555,000 | | 587,529 | |
Triborough Bridge and Tunnel Authority,
General Revenue (MTA Bridges and Tunnels) | | 5.00 | | 1/1/28 | | 2,000,000 | | 2,320,460 | |
Triborough Bridge and Tunnel Authority,
General Revenue (MTA Bridges and Tunnels) | | 5.00 | | 11/15/38 | | 1,000,000 | | 1,133,290 | |
Triborough Bridge and Tunnel Authority,
General Revenue (MTA Bridges and Tunnels) | | 5.25 | | 11/15/45 | | 1,500,000 | | 1,769,820 | |
Triborough Bridge and Tunnel Authority,
General Revenue (MTA Bridges and Tunnels) | | 5.00 | | 11/15/46 | | 6,000,000 | | 7,028,700 | |
TSASC, Inc. of New York,
Senior Tobacco Settlement Bonds | | 5.00 | | 6/1/41 | | 2,500,000 | | 2,766,075 | |
TSASC, Inc. of New York,
Tobbaco Settlement Subordinate Bonds | | 5.00 | | 6/1/48 | | 1,400,000 | | 1,450,162 | |
Utility Debt Securitization Authority of New York,
Restructuring Bonds | | 5.00 | | 12/15/34 | | 3,700,000 | | 4,457,464 | |
Utility Debt Securitization Authority of New York,
Restructuring Bonds | | 5.00 | | 12/15/35 | | 1,750,000 | | 2,101,977 | |
Utility Debt Securitization Authority of New York,
Restructuring Bonds | | 5.00 | | 12/15/35 | | 8,000,000 | | 9,529,120 | |
12
| | | | | | | | | | |
| |
Long-Term Municipal Investments - 100.0% (continued) | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
New York - 98.7% (continued) | | | | | |
Westchester Tobacco Asset Securitization Corporation,
Tobacco Settlement Bonds | | 5.00 | | 6/1/41 | | 1,500,000 | | 1,632,960 | |
Western Nassau County Water Authority,
Water System Revenue | | 5.00 | | 4/1/40 | | 1,000,000 | | 1,134,920 | |
| | 394,746,222 | |
U.S. Related - 1.3% | | | | | |
Guam,
Business Privilege Tax Revenue | | 5.00 | | 1/1/42 | | 2,000,000 | | 2,095,740 | |
Guam,
Hotel Occupancy Tax Revenue | | 5.25 | | 11/1/18 | | 1,100,000 | | 1,151,667 | |
Guam,
Hotel Occupancy Tax Revenue | | 5.50 | | 11/1/19 | | 1,000,000 | | 1,083,050 | |
Guam Waterworks Authority,
Water and Wastewater System Revenue | | 5.63 | | 7/1/40 | | 1,000,000 | | 1,067,600 | |
| | 5,398,057 | |
Total Investments (cost $379,914,750) | | 100.0% | 400,144,279 | |
Liabilities, Less Cash and Receivables | | 0.0% | (129,049) | |
Net Assets | | 100.0% | 400,015,230 | |
a Security issued with a zero coupon. Income is recognized through the accretion of discount.
b Variable rate security—rate shown is the interest rate in effect at period end.
c These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date.
d Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2017, these securities were valued at $24,621,770 or 6.16% of net assets.
e Collateral for floating rate borrowings.
13
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| | |
Portfolio Summary (Unaudited) † | Value (%) |
Transportation Services | 22.4 |
Education | 14.0 |
Special Tax | 13.5 |
Utility-Water and Sewer | 10.1 |
City | 7.8 |
Health Care | 7.1 |
Utility-Electric | 5.8 |
Industrial | 4.5 |
Prerefunded | 3.2 |
State/Territory | 1.3 |
Resource Recovery | 1.2 |
Pollution Control | .7 |
Housing | .1 |
Other | 8.3 |
| | 100.0 |
† Based on net assets.
See notes to financial statements.
14
| | | | |
| |
Summary of Abbreviations (Unaudited) |
| |
ABAG | Association of Bay Area
Governments | ACA | American Capital Access |
AGC | ACE Guaranty Corporation | AGIC | Asset Guaranty Insurance Company |
AMBAC | American Municipal Bond
Assurance Corporation | ARRN | Adjustable Rate
Receipt Notes |
BAN | Bond Anticipation Notes | BPA | Bond Purchase Agreement |
CIFG | CDC Ixis Financial Guaranty | COP | Certificate of Participation |
CP | Commercial Paper | DRIVERS | Derivative Inverse
Tax-Exempt Receipts |
EDR | Economic Development
Revenue | EIR | Environmental Improvement
Revenue |
FGIC | Financial Guaranty
Insurance Company | FHA | Federal Housing Administration |
FHLB | Federal Home
Loan Bank | FHLMC | Federal Home Loan Mortgage
Corporation |
FNMA | Federal National
Mortgage Association | GAN | Grant Anticipation Notes |
GIC | Guaranteed Investment
Contract | GNMA | Government National Mortgage
Association |
GO | General Obligation | HR | Hospital Revenue |
IDB | Industrial Development Board | IDC | Industrial Development Corporation |
IDR | Industrial Development
Revenue | LIFERS | Long Inverse Floating
Exempt Receipts |
LOC | Letter of Credit | LOR | Limited Obligation Revenue |
LR | Lease Revenue | MERLOTS | Municipal Exempt Receipts
Liquidity Option Tender |
MFHR | Multi-Family Housing Revenue | MFMR | Multi-Family Mortgage Revenue |
PCR | Pollution Control Revenue | PILOT | Payment in Lieu of Taxes |
P-FLOATS | Puttable Floating Option
Tax-Exempt Receipts | PUTTERS | Puttable Tax-Exempt Receipts |
RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes |
RAW | Revenue Anticipation Warrants | RIB | Residual Interest Bonds |
ROCS | Reset Options Certificates | RRR | Resources Recovery Revenue |
SAAN | State Aid Anticipation Notes | SBPA | Standby Bond Purchase Agreement |
SFHR | Single Family Housing Revenue | SFMR | Single Family Mortgage Revenue |
SONYMA | State of New York
Mortgage Agency | SPEARS | Short Puttable Exempt
Adjustable Receipts |
SWDR | Solid Waste Disposal Revenue | TAN | Tax Anticipation Notes |
TAW | Tax Anticipation Warrants | TRAN | Tax and Revenue Anticipation Notes |
XLCA | XL Capital Assurance | | |
See notes to financial statements.
15
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2017 (Unaudited)
| | | | | | | |
| | | | | | |
| | | Cost | | Value | |
Assets ($): | | | | |
Investments in securities—See Statement of Investments | | 379,914,750 | | 400,144,279 | |
Cash | | | | | 2,532,735 | |
Interest receivable | | | | | 5,104,643 | |
Receivable for shares of Beneficial Interest subscribed | | | | | 395 | |
Prepaid expenses | | | | | 38,141 | |
| | | | | 407,820,193 | |
Liabilities ($): | | | | |
Due to The Dreyfus Corporation and affiliates—Note 3(c) | | | | | 298,763 | |
Payable for floating rate notes issued—Note 4 | | | | | 7,000,000 | |
Payable for shares of Beneficial Interest redeemed | | | | | 418,296 | |
Interest and expense payable related to
floating rate notes issued—Note 4 | | | | | 18,883 | |
Accrued expenses | | | | | 69,021 | |
| | | | | 7,804,963 | |
Net Assets ($) | | | 400,015,230 | |
Composition of Net Assets ($): | | | | |
Paid-in capital | | | | | 383,397,867 | |
Accumulated undistributed investment income—net | | | | | 9,696 | |
Accumulated net realized gain (loss) on investments | | | | | (3,621,862) | |
Accumulated net unrealized appreciation (depreciation)
on investments | | | | 20,229,529 | |
Net Assets ($) | | | 400,015,230 | |
| | | | | | |
Net Asset Value Per Share | Class A | Class C | Class I | Class Y | |
Net Assets ($) | 285,793,279 | 28,784,025 | 85,436,901 | 1,024.90 | |
Shares Outstanding | 19,102,532 | 1,923,677 | 5,710,840 | 68.49 | |
Net Asset Value Per Share ($) | 14.96 | 14.96 | 14.96 | 14.96 | |
| | | | | | |
See notes to financial statements. | | | | | |
16
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2017 (Unaudited)
| | | | | | | |
| | | | | | | |
| | | | | | |
| | | | | | |
Investment Income ($): | | | | |
Interest Income | | | 7,325,114 | |
Expenses: | | | | |
Management fee—Note 3(a) | | | 1,097,370 | |
Shareholder servicing costs—Note 3(c) | | | 485,029 | |
Distribution fees—Note 3(b) | | | 110,665 | |
Professional fees | | | 62,430 | |
Interest and expense related to floating rate notes issued—Note 4 | | | 48,590 | |
Registration fees | | | 30,471 | |
Trustees’ fees and expenses—Note 3(d) | | | 14,056 | |
Prospectus and shareholders’ reports | | | 9,222 | |
Custodian fees—Note 3(c) | | | 8,346 | |
Loan commitment fees—Note 2 | | | 4,999 | |
Miscellaneous | | | 26,971 | |
Total Expenses | | | 1,898,149 | |
Less—reduction in fees due to earnings credits—Note 3(c) | | | (1,961) | |
Net Expenses | | | 1,896,188 | |
Investment Income—Net | | | 5,428,926 | |
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): | | |
Net realized gain (loss) on investments | 1,847,296 | |
Net unrealized appreciation (depreciation) on investments | | | 12,257,165 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 14,104,461 | |
Net Increase in Net Assets Resulting from Operations | | 19,533,387 | |
| | | | | | | |
See notes to financial statements. | | | | | |
17
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | | | |
| | | | | | | | | | |
| | | | Six Months Ended
May 31, 2017 (Unaudited) | | | | Year Ended
November 30, 2016 | |
Operations ($): | | | | | | | | |
Investment income—net | | | 5,428,926 | | | | 11,604,349 | |
Net realized gain (loss) on investments | | 1,847,296 | | | | 893,889 | |
Net unrealized appreciation (depreciation)
on investments | | 12,257,165 | | | | (15,685,376) | |
Net Increase (Decrease) in Net Assets
Resulting from Operations | 19,533,387 | | | | (3,187,138) | |
Distributions to Shareholders from ($): | | | | | | | | |
Investment income—net: | | | | | | | | |
Class A | | | (4,091,040) | | | | (9,415,300) | |
Class C | | | (291,319) | | | | (625,323) | |
Class I | | | (1,036,856) | | | | (1,533,098) | |
Class Y | | | (15) | | | | (32) | |
Total Distributions | | | (5,419,230) | | | | (11,573,753) | |
Beneficial Interest Transactions ($): | | | | | | | | |
Net proceeds from shares sold: | | | | | | | | |
Class A | | | 5,883,447 | | | | 35,001,816 | |
Class C | | | 1,593,907 | | | | 6,341,993 | |
Class I | | | 47,145,071 | | | | 31,504,739 | |
Distributions reinvested: | | | | | | | | |
Class A | | | 3,409,195 | | | | 7,901,226 | |
Class C | | | 234,099 | | | | 480,578 | |
Class I | | | 974,858 | | | | 1,381,854 | |
Cost of shares redeemed: | | | | | | | | |
Class A | | | (60,319,351) | | | | (39,243,636) | |
Class C | | | (4,602,925) | | | | (3,906,626) | |
Class I | | | (19,939,648) | | | | (18,647,654) | |
Increase (Decrease) in Net Assets
from Beneficial Interest Transactions | (25,621,347) | | | | 20,814,290 | |
Total Increase (Decrease) in Net Assets | (11,507,190) | | | | 6,053,399 | |
Net Assets ($): | | | | | | | | |
Beginning of Period | | | 411,522,420 | | | | 405,469,021 | |
End of Period | | | 400,015,230 | | | | 411,522,420 | |
Undistributed investment income—net | 9,696 | | | | - | |
Capital Share Transactions (Shares): | | | | | | | | |
Class Aa | | | | | | | | |
Shares sold | | | 401,563 | | | | 2,294,411 | |
Shares issued for distributions reinvested | | | 231,819 | | | | 520,239 | |
Shares redeemed | | | (4,123,801) | | | | (2,588,951) | |
Net Increase (Decrease) in Shares Outstanding | (3,490,419) | | | | 225,699 | |
Class C | | | | | | | | |
Shares sold | | | 108,819 | | | | 416,240 | |
Shares issued for distributions reinvested | | | 15,913 | | | | 31,646 | |
Shares redeemed | | | (314,548) | | | | (258,565) | |
Net Increase (Decrease) in Shares Outstanding | (189,816) | | | | 189,321 | |
Class Ia | | | | | | | | |
Shares sold | | | 3,222,102 | | | | 2,067,478 | |
Shares issued for distributions reinvested | | | 66,184 | | | | 90,987 | |
Shares redeemed | | | (1,366,049) | | | | (1,234,004) | |
Net Increase (Decrease) in Shares Outstanding | 1,922,237 | | | | 924,461 | |
| | | | | | | | | | |
aDuring the period ended May 31, 2017 17,178 Class A shares representing $254,067 were exchanged for 17,193 Class I shares. | |
See notes to financial statements. | | | | | | | | |
18
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund’s financial statements.
| | | | | | | |
Class A Shares | Six Months Ended May 31, 2017 | Year Ended November 30, |
(Unaudited) | 2016 | 2015 | 2014 | 2013 | 2012 |
Per Share Data ($): | | | | | | |
Net asset value,
beginning of period | 14.44 | 14.93 | 14.91 | 14.29 | 15.60 | 14.62 |
Investment Operations: | | | | | | |
Investment income—neta | .20 | .42 | .45 | .47 | .46 | .52 |
Net realized and unrealized
gain (loss) on investments | .52 | (.49) | .03 | .62 | (1.31) | .98 |
Total from Investment Operations | .72 | (.07) | .48 | 1.09 | (.85) | 1.50 |
Distributions: | | | | | | |
Dividends from
investment income—net | (.20) | (.42) | (.46) | (.47) | (.46) | (.52) |
Net asset value, end of period | 14.96 | 14.44 | 14.93 | 14.91 | 14.29 | 15.60 |
Total Return (%)b | 5.01c | (.58) | 3.24 | 7.76 | (5.52) | 10.39 |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | .94d | .92 | .91 | .92 | .90 | .91 |
Ratio of net expenses
to average net assets | .94d | .92 | .91 | .92 | .90 | .91 |
Ratio of interest and expense related to floating rate notes issued to average net assets | .02d | .02 | .01 | .01 | .01 | .00e |
Ratio of net investment income
to average net assets | 2.74d | 2.76 | 3.05 | 3.24 | 3.09 | 3.41 |
Portfolio Turnover Rate | 4.18c | 12.48 | 24.62 | 20.10 | 12.95 | 9.96 |
Net Assets, end of period ($ x 1,000) | 285,793 | 326,281 | 333,968 | 351,371 | 343,975 | 405,161 |
a Based on average shares outstanding.
b Exclusive of sales charge.
c Not annualized.
d Annualized.
e Amount represents less than .01%.
See notes to financial statements.
19
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | |
Class C Shares | Six Months Ended May 31, 2017 | Year Ended November 30, |
(Unaudited) | 2016 | 2015 | 2014 | 2013 | 2012 |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | 14.44 | 14.93 | 14.91 | 14.30 | 15.60 | 14.62 |
Investment Operations: | | | | | | |
Investment income—neta | .14 | .30 | .34 | .36 | .35 | .40 |
Net realized and unrealized
gain (loss) on investments | .52 | (.49) | .02 | .61 | (1.31) | .98 |
Total from Investment Operations | .66 | (.19) | .36 | .97 | (.96) | 1.38 |
Distributions: | | | | | | |
Dividends from
investment income—net | (.14) | (.30) | (.34) | (.36) | (.34) | (.40) |
Net asset value, end of period | 14.96 | 14.44 | 14.93 | 14.91 | 14.30 | 15.60 |
Total Return (%)b | 4.62c | (1.33) | 2.45 | 6.93 | (6.24) | 9.55 |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | 1.70d | 1.68 | 1.67 | 1.68 | 1.67 | 1.68 |
Ratio of net expenses
to average net assets | 1.69d | 1.68 | 1.67 | 1.68 | 1.67 | 1.68 |
Ratio of interest and expense related to floating rate notes issued to average net assets | .02d | .02 | .01 | .01 | .01 | .00e |
Ratio of net investment income
to average net assets | 1.98d | 1.99 | 2.28 | 2.45 | 2.32 | 2.61 |
Portfolio Turnover Rate | 4.18c | 12.48 | 24.62 | 20.10 | 12.95 | 9.96 |
Net Assets, end of period ($ x 1,000) | 28,784 | 30,526 | 28,734 | 24,239 | 20,517 | 21,214 |
a Based on average shares outstanding.
b Exclusive of sales charge.
c Not annualized.
d Annualized.
e Amount represents less than .01%.
See notes to financial statements.
20
| | | | | | | |
Class I Shares | Six Months Ended May 31, 2017 | Year Ended November 30, |
(Unaudited) | 2016 | 2015 | 2014 | 2013 | 2012 |
Per Share Data ($): | | | | | | |
Net asset value,
beginning of period | 14.44 | 14.93 | 14.91 | 14.29 | 15.60 | 14.62 |
Investment Operations: | | | | | | |
Investment income—neta | .22 | .45 | .49 | .50 | .50 | .53 |
Net realized and unrealized
gain (loss) on investments | .52 | (.48) | .02 | .63 | (1.31) | 1.00 |
Total from Investment Operations | .74 | (.03) | .51 | 1.13 | (.81) | 1.53 |
Distributions: | | | | | | |
Dividends from
investment income—net | (.22) | (.46) | (.49) | (.51) | (.50) | (.55) |
Net asset value, end of period | 14.96 | 14.44 | 14.93 | 14.91 | 14.29 | 15.60 |
Total Return (%) | 5.14b | (.33) | 3.50 | 8.03 | (5.28) | 10.65 |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | .70c | .67 | .66 | .66 | .64 | .68 |
Ratio of net expenses
to average net assets | .70c | .67 | .66 | .66 | .64 | .68 |
Ratio of interest and expense related to floating rate notes issued to average net assets | .02c | .02 | .01 | .01 | .01 | .00d |
Ratio of net investment income
to average net assets | 2.96c | 2.99 | 3.29 | 3.45 | 3.34 | 3.55 |
Portfolio Turnover Rate | 4.18b | 12.48 | 24.62 | 20.10 | 12.95 | 9.96 |
Net Assets, end of period ($ x 1,000) | 85,437 | 54,714 | 42,766 | 32,191 | 22,139 | 26,094 |
a Based on average shares outstanding.
b Not annualized.
c Annualized.
d Amount represents less than .01%.
See notes to financial statements.
21
FINANCIAL HIGHLIGHTS (continued)
| | | | | | |
Class Y Shares | Six Months Ended
May 31, 2017 | Year Ended November 30, |
(Unaudited) | 2016 | 2015 | 2014 | 2013a |
Per Share Data ($): | | | | | |
Net asset value,
beginning of period | 14.44 | 14.93 | 14.91 | 14.30 | 14.60 |
Investment Operations: | | | | | |
Investment income—netb | .21 | .46 | .46 | .49 | .23 |
Net realized and unrealized
gain (loss) on investments | .52 | (.49) | .04 | .61 | (.31) |
Total from Investment Operations | .73 | (.03) | .50 | 1.10 | (.08) |
Distributions: | | | | | |
Dividends from
investment income—net | (.21) | (.46) | (.48) | (.49) | (.22) |
Net asset value, end of period | 14.96 | 14.44 | 14.93 | 14.91 | 14.30 |
Total Return (%) | 5.11c | (.30) | 3.42 | 7.89 | (.62)c |
Ratios/Supplemental Data (%): | | | | | |
Ratio of total expenses
to average net assets | .62d | .61 | .64 | .79 | .55d |
Ratio of net expenses
to average net assets | .62d | .61 | .64 | .79 | .55d |
Ratio of interest and expense related
to floating rate notes issued
to average net assets | .02d | .02 | .01 | .01 | .01d |
Ratio of net investment income
to average net assets | 2.88d | 3.04 | 3.11 | 3.32 | 3.79d |
Portfolio Turnover Rate | 4.18c | 12.48 | 24.62 | 20.10 | 12.95 |
Net Assets, end of period ($ x 1,000) | 1 | 1 | 1 | 1 | 1 |
a From July 1, 2013 (commencement of initial offering) to November 30, 2013.
b Based on average shares outstanding.
c Not annualized.
d Annualized.
See notes to financial statements.
22
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
Dreyfus New York AMT-Free Municipal Bond Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified open–end management investment company. The fund’s investment objective is to seek to maximize current income exempt from federal, New York state and New York city income taxes to the extent consistent with the preservation of capital. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser.
Effective March 31, 2017, the fund authorized the issuance of Class T shares, but, as of the date of this report, the fund did not offer Class T shares for purchase.
MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund’s shares. The fund is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Class A, Class C, Class I, Class T and Class Y. Class A and Class T shares generally are subject to a sales charge imposed at the time of purchase. Class C shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class C shares redeemed within one year of purchase. Class I and Class Y shares are sold at net asset value per share generally to institutional investors. Other differences between the classes include the services offered to and the expenses borne by each class, the allocation of certain transfer agency costs, and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
As of May 31, 2017, MBC Investments Corp., an indirect subsidiary of BNY Mellon, held all of the outstanding Class Y shares of the fund.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
23
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown. The fund does not anticipate recognizing any loss related to these arrangements.
(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:
Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the fund’s Board of Trustees (the “Board”). 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
24
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 the following: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. All of the preceding securities are generally categorized within Level 2 of the fair value hierarchy.
The Service is engaged under the general supervision of the Board.
When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.
For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are generally categorized within Level 3 of the fair value hierarchy.
The following is a summary of the inputs used as of May 31, 2017 in valuing the fund’s investments:
| | | | | |
| | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 -Significant Unobservable Inputs | Total |
Assets ($) | | | | |
Investments in Securities: | | | | |
Municipal Bonds† | – | 400,144,279 | – | 400,144,279 |
Liabilities ($) | | | | |
Floating Rate Notes†† | – | (7,000,000) | – | (7,000,000) |
† See Statement of Investments for additional detailed categorizations.
†† Certain of the fund’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes.
At May 31, 2017, there were no transfers between levels of the fair value hierarchy.
25
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when issued or delayed delivery basis may be settled a month or more after the trade date.
The fund follows an investment policy of investing primarily in municipal obligations of one state. Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the fund.
(c) Dividends and distributions 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 gains, 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 gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
(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.
As of and during the period ended May 31, 2017, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended May 31, 2017, the fund did not incur any interest or penalties.
Each tax year in the three-year period ended November 30, 2016 remains subject to examination by the Internal Revenue Service and state taxing authorities.
Under the Regulated Investment Company Modernization Act of 2010 (the “2010 Act”), the fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 (“post-enactment losses”) for an unlimited period. Furthermore, post-enactment capital loss carryovers retain their character as either short-term or long-
26
term capital losses rather than short-term as they were under previous statute. The 2010 Act requires post-enactment losses to be utilized before the utilization of losses incurred in taxable years prior to the effective date of the 2010 Act (“pre-enactment losses”). As a result of this ordering rule, pre-enactment losses may be more likely to expire unused.
The fund has an unused capital loss carryover of $5,518,210 available for federal income tax purposes to be applied against future net realized capital gains, if any, realized subsequent to November 30, 2016. $1,480,007 expires in fiscal year 2017 and $487,305 expires in fiscal year 2019. The fund has $1,557,823 of post-enactment short-term capital losses and $1,993,075 of post-enactment long-term capital losses which can be carried forward for an unlimited period
The tax character of distributions paid to shareholders during the fiscal year ended November 30, 2016 was as follows: tax-exempt income $11,562,533 and ordinary income $11,220. The tax character of current year distributions will be determined at the end of the current fiscal year.
NOTE 2—Bank Lines of Credit:
The fund participates with other Dreyfus-managed funds in an $810 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended May 31, 2017, the fund did not borrow under the Facilities.
NOTE 3—Management Fee and Other Transactions with Affiliates:
(a) Pursuant to a management agreement with Dreyfus, the management fee is computed at the annual rate of .55% of the value of the fund’s average daily net assets and is payable monthly.
During the period ended May 31, 2017, the Distributor retained $1,562 from CDSCs on redemptions of the fund’s Class C shares.
(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Class C shares pay the Distributor for distributing its shares at an annual rate of .75% of the value of its average daily net assets. During the period ended May 31, 2017, Class C shares were charged $110,665 pursuant to the Distribution Plan.
27
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(c) Under the Shareholder Services Plan, Class A and Class C shares pay the Distributor at an annual rate of .25% 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 (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended May 31, 2017, Class A and Class C shares were charged $374,253 and $36,888, respectively, pursuant to the Shareholder Services Plan.
The fund has arrangements with the transfer agent and the custodian whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset transfer agency and custody fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing transfer agency and cash management services for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended May 31, 2017, the fund was charged $36,799 for transfer agency services and $1,970 for cash management services. These fees are included in Shareholder servicing costs in the Statement of Operations. Cash management fees were partially offset by earnings credits of $1,961.
The fund compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets, geographic region and transaction activity. During the period ended May 31, 2017, the fund was charged $8,346 pursuant to the custody agreement.
The fund compensates The Bank of New York Mellon under a shareholder redemption draft processing agreement for providing certain services related to the fund’s check writing privilege. During the period ended May 31, 2017, the fund was charged $1,294 pursuant to the agreement, which is included in Shareholder servicing costs in the Statement of Operations.
During the period ended May 31, 2017, the fund was charged $5,791 for services performed by the Chief Compliance Officer and his staff.
28
The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $185,095, Distribution Plan fees $18,475, Shareholder Services Plan fees $66,299, custodian fees $11,396, Chief Compliance Officer fees $4,826 and transfer agency fees $12,672.
(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTE 4—Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended May 31, 2017, amounted to $16,511,908 and $42,783,217, respectively.
Inverse Floater Securities: The fund participates in secondary inverse floater structures in which fixed-rate, tax-exempt municipal bonds are transferred to a trust (the “Inverse Floater Trust”). The Inverse Floater Trust typically issues two variable rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds. One of these variable rate securities pays interest based on a short-term floating rate set by a remarketing agent at predetermined intervals (“Trust Certificates”). A residual interest tax-exempt security is also created by the Inverse Floater Trust, which is transferred to the fund, and is paid interest based on the remaining cash flows of the Inverse Floater Trust, after payment of interest on the other securities and various expenses of the Inverse Floater Trust. An inverse floater security may be collapsed without the consent of the fund due to certain termination events such as bankruptcy, default or other credit event.
The fund accounts for the transfer of bonds to the Inverse Floater Trust as secured borrowings, with the securities transferred remaining in the fund’s investments, and the Trust Certificates reflected as fund liabilities in the Statement of Assets and Liabilities.
The fund may invest in inverse floater securities on either a non-recourse or recourse basis. These securities are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity Provider”) that allows the holders of the Trust Certificates to tender their certificates in exchange for payment from the Liquidity Provider of par plus accrued interest on any business day prior to a termination event. When the fund invests in inverse floater securities on a non-recourse basis, the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event to the holders of the Trust Certificates. When this occurs, the Liquidity Provider typically liquidates all or a portion
29
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
of the municipal securities held in the Inverse Floater Trust. A liquidation shortfall occurs if the Trust Certificates exceed the proceeds of the sale of the bonds in the Inverse Floater Trust (“Liquidation Shortfall”). When a fund invests in inverse floater securities on a recourse basis, the fund typically enters into a reimbursement agreement with the Liquidity Provider where the fund is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a fund investing in a recourse inverse floater security bears the risk of loss with respect to any Liquidation Shortfall.
The average amount of borrowings outstanding under the inverse floater structure during the period ended May 31, 2017 was approximately $7,000,000, with a related weighted average annualized interest rate of 1.39%.
At May 31, 2017, accumulated net unrealized appreciation on investments was $20,229,529, consisting of $22,015,663 gross unrealized appreciation and $1,786,134 gross unrealized depreciation.
At May 31, 2017, 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).
30
NOTES
31
NOTES
32
NOTES
33
Dreyfus New York AMT-Free 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 Mellon
225 Liberty Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
MBSC Securities Corporation
200 Park Avenue
New York, NY 10166
| | |
Ticker Symbols: | Class A: PSNYX Class C: PNYCX Class I: DNYIX Class Y: DNYYX |
Telephone Call your financial representative or 1-800-DREYFUS
Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
E-mail Send your request to info@dreyfus.com
Internet Information can be viewed online or downloaded at www.dreyfus.com
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (phone 1-800-SEC-0330 for information).
A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available at www.dreyfus.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-DREYFUS.
| | |
© 2017 MBSC Securities Corporation
0021SA0517 | 
|
