| UNITED STATES |
| SECURITIES AND EXCHANGE COMMISSION |
| Washington, D.C. 20549 |
| FORM N-CSR |
| CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT |
| INVESTMENT COMPANIES |
| Investment Company Act file number 811-4764 |
| Dreyfus Premier Municipal Bond Fund |
| (Exact name of Registrant as specified in charter) |
| c/o The Dreyfus Corporation |
| 200 Park Avenue |
| New York, New York 10166 |
| (Address of principal executive offices) (Zip code) |
| Michael A. Rosenberg, Esq. |
| 200 Park Avenue |
| New York, New York 10166 |
| (Name and address of agent for service) |
Registrant's telephone number, including area code: (212) 922-6000
| Date of fiscal year end: | 04/30 | |
| Date of reporting period: | 04/30/08 |
| FORM N-CSR |
| Item 1. | Reports to Stockholders. |
Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.
The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.
Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value
| Contents | ||
| THE FUND | ||
| 2 | A Letter from the CEO | |
| 3 | Discussion of Fund Performance | |
| 6 | Fund Performance | |
| 8 | Understanding Your Fund’s Expenses | |
| 8 | Comparing Your Fund’s Expenses | |
| With Those of Other Funds | ||
| 9 | Statement of Investments | |
| 25 | Statement of Assets and Liabilities | |
| 26 | Statement of Operations | |
| 27 | Statement of Changes in Net Assets | |
| 29 | Financial Highlights | |
| 33 | Notes to Financial Statements | |
| 41 | Report of Independent Registered | |
| Public Accounting Firm | ||
| 42 | Important Tax Information | |
| 43 | Board Members Information | |
| 46 | Officers of the Fund | |
| FOR MORE INFORMATION | ||
| Back Cover | ||
| Dreyfus Premier |
| Municipal Bond Fund |
| The | Fund |
A LETTER FROM THE CEO
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Municipal Bond Fund, covering the 12-month period from May 1, 2007, through April 30, 2008.
Although the U.S. economy has teetered on the brink of recession and the financial markets encountered heightened volatility due to an ongoing credit crisis over the reporting period, we recently have seen signs of potential improvement.The Federal Reserve Board’s aggressive easing of monetary policy and innovative measures to inject liquidity into the banking system appear to have reassured many investors and economists. At Dreyfus, we believe that the current economic downturn is likely to be relatively brief by historical standards, but the ensuing recovery may be gradual and prolonged as financial deleveraging and housing price deflation continue to weigh on economic activity.
The implications of our economic outlook for the municipal bond market generally are positive. Losses incurred by bond insurers and lack of demand for auction-rate securities have created attractive values in many areas of the municipal bond market. Furthermore, some municipal funds currently offer favorable taxable-equivalent yields as compared to their taxable and U.S. Treasury counterparts.Your financial advisor can help you assess your tax and investment strategies, and take advantage of these opportunities within the context of your overall investment portfolio.
For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund’s Portfolio Managers.
Thank you for your continued confidence and support.
2
DISCUSSION OF FUND PERFORMANCE
For the period of May 1, 2007, through April 30, 2008, as provided by James Welch and W. Michael Petty, Portfolio Managers
Fund and Market Performance Overview
For the 12-month period ended April 30, 2008, Dreyfus Premier Municipal Bond Fund’s Class A shares achieved a total return of 0.28%, Class B shares achieved a total return of –0.25%, Class C shares achieved a total return of –0.46% and Class Z shares achieved a total return of 0.33% .1The Lehman Brothers Municipal Bond Index (the “Index”), the fund’s benchmark,which does not reflect fees and expenses like a mutual fund, achieved a total return of 2.79% for the same period.2 In addition, the fund is reported in the Lipper General Municipal Debt Funds category,and the average total return for all funds reported in this Lipper category was 0.10% for the reporting period.3
Municipal bonds generally produced modestly positive returns in a volatile investment climate stemming from a sharp economic slowdown and an intensifying credit crisis.The fund’s Class A and Class Z shares produced higher returns than the Lipper category average, primarily due to strong income returns from its seasoned holdings.
The Fund’s Investment Approach
The fund seeks to maximize current income exempt from federal income tax to the extent consistent with the preservation of capital.To pursue its goal, the fund normally invests substantially all of its assets in municipal bonds that provide income exempt from federal income tax. The fund invests at least 70% of its assets in investment-grade municipal bonds or the unrated equivalent as determined by Dreyfus.The fund may invest up to 30% of its assets in municipal bonds rated below investment grade or the unrated equivalent as determined by Dreyfus. Under normal market conditions, the dollar-weighted average maturity of the fund’s portfolio is expected to exceed 10 years.
We may buy and sell bonds based on credit quality, market outlook and yield potential. In selecting municipal bonds for investment, we may assess the current interest-rate environment and a municipal bond’s
The Fund 3
DISCUSSION OF FUND PERFORMANCE (continued)
potential volatility in different rate environments. We focus on bonds with the potential to offer attractive current income, typically looking for bonds that can provide consistently attractive current yields or that are trading at competitive market prices. A portion of the fund’s assets may be allocated to “discount”bonds,which are bonds that sell at a price below their face value, or to “premium” bonds, which are bonds that sell at a price above their face value.The fund’s allocation either to discount bonds or to premium bonds will change along with our changing views of the current interest-rate and market environments.We may also look to select bonds that are most likely to obtain attractive prices when sold.
Economic and Credit Concerns Caused Volatility
The reporting period proved to be challenging.A credit crisis that originated in the sub-prime mortgage market spread to other asset classes, including municipal bonds.At the same time, the U.S. economy suffered a downturn as slumping home values and soaring food and energy prices put pressure on businesses and consumers.The Federal Reserve Board attempted to mitigate both matters by injecting liquidity into the banking system and aggressively reducing short-term interest rates.
Although municipal bonds have no direct exposure to sub-prime mortgages, the market was affected by three related developments. First, plummeting asset prices forced highly leveraged investors to sell their more creditworthy holdings, including municipal bonds, to meet redemption requests and margin calls. Second, a number of bond insurers suffered massive losses in their mortgage-backed securities portfolios, causing investors to question the value of insurance on municipal bonds. Finally, demand dried up for auction-rate securities, a segment of the municipal bond market on which yields are reset periodically through an auction process.These forces caused municipal bond yields to rise to levels that, at times during the reporting period, exceeded those of taxable U.S.Treasury securities.
Credit Research Helped the Fund Weather the Storm
In this difficult environment, the fund’s returns were supported by competitive income returns from holdings that were purchased at higher yields than are available today. In addition, we intensified our review
4
of the underlying credit fundamentals of the fund’s holdings, which enabled the fund to avoid sharp prices declines among lower-rated bonds while cushioning the fluctuations of a more volatile market.We also maintained the fund’s average duration in a range we considered slightly shorter than its benchmark, helping the fund participate more fully in relative strength among shorter-term bonds.As yield differences widened, we gradually extended the fund’s average duration to capture higher yields from longer-dated securities. Finally, we took selective advantage of dislocations in the auction-rate securities market, capturing unusually high levels of income from these short-term instruments.
Maintaining a Cautious Investment Posture
A market rally in March and April apparently reflected a more optimistic outlook among investors. However, the U.S. economy has continued to struggle, many states are facing greater fiscal pressures and the credit crisis has persisted in a number of fixed-income markets.Therefore, we have maintained a generally defensive strategy, including a mildly short average maturity and a focus on higher-quality securities.
| May 15, 2008 |
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. Class Z is not subject to any initial or deferred sales charge. Had these charges been reflected, returns would have been lower. Each share class is subject to a different sales charge and distribution expense structure and will achieve different returns. 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, and some income may be subject to the federal alternative minimum tax (AMT) for certain investors. Capital gains, if any, are taxable.
2 SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital gain distributions.The Lehman Brothers Municipal Bond Index is a widely accepted, unmanaged total return performance benchmark for the long-term, investment-grade, tax-exempt bond market. Index returns do not reflect fees and expenses associated with operating a mutual fund.
3 Source: Lipper Inc.
The Fund 5
FUND PERFORMANCE
† Source: Lipper Inc.
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A, Class B and Class C shares of Dreyfus Premier Municipal Bond Fund on 4/30/98 to a $10,000 investment made in the Lehman Brothers Municipal Bond Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. Performance for Class Z shares will vary from the performance of Class A, Class B and Class C shares shown above due to differences in charges and expenses. The fund invests primarily in 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 for Class A, Class B and Class C shares.The Index, unlike the fund, is an unmanaged total return performance benchmark for the long-term, investment-grade, 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. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. 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.
6
| Average Annual Total Returns as of 4/30/08 | ||||||||||
| Inception | From | |||||||||
| Date | 1 Year | 5 Years | 10 Years | Inception | ||||||
| Class Z shares | 10/14/04 | 0.33% | — | — | 3.37% | |||||
| Class A shares | ||||||||||
| with maximum sales charge (4.5%) | (4.26)% | 2.85% | 3.07% | |||||||
| without sales charge | 0.28% | 3.80% | 3.54% | |||||||
| Class B shares | ||||||||||
| with applicable redemption charge † | (4.09)% | 2.92% | 3.23% | |||||||
| without redemption | (0.25)% | 3.26% | 3.23% | |||||||
| Class C shares | ||||||||||
| with applicable redemption charge †† | (1.42)% | 3.04% | 2.78% | |||||||
| without redemption | (0.46)% | 3.04% | 2.78% | |||||||
| Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not | ||
| reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | ||
| Performance for Class B shares assumes the conversion of Class B shares to Class A shares at the end of the sixth year | ||
| following the date of purchase. | ||
| † | 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 7
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 Premier Municipal Bond Fund from November 1, 2007 to April 30, 2008. 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 April 30, 2008 | ||||||||
| Class A | Class B | Class C | Class Z | |||||
| Expenses paid per $1,000 † | $ 5.93 | $ 8.52 | $ 9.76 | $ 5.69 | ||||
| Ending value (after expenses) | $1,005.50 | $1,002.80 | $1,001.80 | $1,005.70 | ||||
| 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 April 30, 2008 | ||||||||
| Class A | Class B | Class C | Class Z | |||||
| Expenses paid per $1,000 † | $ 5.97 | $ 8.57 | $ 9.82 | $ 5.72 | ||||
| Ending value (after expenses) | $1,018.95 | $1,016.36 | $1,015.12 | $1,019.19 | ||||
† Expenses are equal to the fund’s annualized expense ratio of 1.19% for Class A, 1.71% for Class B, 1.96% for Class C and 1.14% for Class Z Shares; multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
8
| STATEMENT OF INVESTMENTS |
| April 30, 2008 |
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments—102.9% | Rate (%) | Date | Amount ($) | Value ($) | ||||
| Alabama—.5% | ||||||||
| University of Alabama, | ||||||||
| HR (Insured; MBIA) | 5.75 | 9/1/10 | 3,000,000 a | 3,251,550 | ||||
| Arizona—2.4% | ||||||||
| Arizona Health Facilities | ||||||||
| Authority, Health Care | ||||||||
| Facilities Revenue (The | ||||||||
| Beatitudes Campus Project) | 5.20 | 10/1/37 | 2,500,000 | 1,977,275 | ||||
| City of Phoenix, County of | ||||||||
| Maricopa and the County of | ||||||||
| Pima Industrial Development | ||||||||
| Authorities, SFMR (Collateralized: | ||||||||
| FHLMC, FNMA and GNMA) | 5.80 | 12/1/39 | 7,965,000 | 7,943,176 | ||||
| Pima County Industrial Development | ||||||||
| Authority, Education Revenue | ||||||||
| (American Charter Schools | ||||||||
| Foundation Project) | 5.63 | 7/1/38 | 5,000,000 | 4,540,000 | ||||
| California—7.8% | ||||||||
| California, | ||||||||
| GO | 5.63 | 5/1/10 | 2,530,000 a | 2,697,562 | ||||
| California, | ||||||||
| GO (Insured; MBIA) | 4.25 | 8/1/33 | 3,825,000 | 3,503,050 | ||||
| California, | ||||||||
| GO (Various Purpose) | 5.25 | 11/1/27 | 5,000,000 | 5,156,400 | ||||
| California Health Facilities | ||||||||
| Financing Authority, Revenue | ||||||||
| (Sutter Health) | 5.25 | 11/15/46 | 8,360,000 | 8,397,453 | ||||
| California Pollution Control | ||||||||
| Financing Authority, PCR (San | ||||||||
| Diego Gas and Electric Company) | 5.90 | 6/1/14 | 12,710,000 b,c | 14,559,750 | ||||
| Golden State Tobacco | ||||||||
| Securitization Corporation, | ||||||||
| Tobacco Settlement | ||||||||
| Asset-Backed Bonds | 7.88 | 6/1/13 | 2,170,000 a | 2,607,038 | ||||
| Golden State Tobacco | ||||||||
| Securitization Corporation, | ||||||||
| Tobacco Settlement | ||||||||
| Asset-Backed Bonds | 7.90 | 6/1/13 | 1,920,000 a | 2,308,800 | ||||
| Golden State Tobacco | ||||||||
| Securitization Corporation, | ||||||||
| Tobacco Settlement | ||||||||
| Asset-Backed Bonds | 5.75 | 6/1/47 | 5,000,000 | 4,489,450 | ||||
The Fund 9
STATEMENT OF INVESTMENTS (continued)
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| California (continued) | ||||||||
| Lincoln, Community Facilities | ||||||||
| District Number 2003-1, | ||||||||
| Special Tax Bonds (Lincoln | ||||||||
| Crossing Project) | 6.00 | 9/1/13 | 3,145,000 a | 3,630,462 | ||||
| Colorado—4.9% | ||||||||
| Colorado Educational and Cultural | ||||||||
| Facilities Authority, LR | ||||||||
| (Community Colleges of | ||||||||
| Colorado System Headquarters | ||||||||
| Project) (Insured; AMBAC) | 5.50 | 12/1/21 | 1,100,000 | 1,159,653 | ||||
| Colorado Health Facilities | ||||||||
| Authority, Revenue (Poudre | ||||||||
| Hospital) (Insured; FSA) | 5.25 | 3/1/36 | 5,000,000 | 5,086,050 | ||||
| Colorado Housing Finance Authority | ||||||||
| (Single Family Program) | ||||||||
| (Collateralized; FHA) | 7.15 | 10/1/30 | 45,000 | 45,883 | ||||
| Colorado Housing Finance Authority | ||||||||
| (Single Family Program) | ||||||||
| (Collateralized; FHA) | 6.60 | 8/1/32 | 2,580,000 | 2,746,978 | ||||
| Denver City and County, | ||||||||
| Airport Revenue (Insured; AMBAC) | 6.00 | 11/15/17 | 5,000,000 | 5,123,350 | ||||
| Northwest Parkway Public Highway | ||||||||
| Authority, Revenue | 7.13 | 6/15/11 | 8,250,000 a | 9,311,858 | ||||
| Northwest Parkway Public Highway | ||||||||
| Authority, Revenue | ||||||||
| (Insured; AMBAC) | 0.00 | 6/15/11 | 6,125,000 a,i | 2,090,646 | ||||
| University of Colorado Hospital | ||||||||
| Authority, Revenue | 5.25 | 11/15/39 | 4,810,000 | 4,487,971 | ||||
| Connecticut—5.0% | ||||||||
| Connecticut | 5.75 | 6/15/11 | 8,000,000 b,c | 8,541,440 | ||||
| Connecticut | 5.50 | 12/15/15 | 7,400,000 b,c | 8,453,427 | ||||
| Connecticut Health and Educational | ||||||||
| Facilities Authority, Revenue | ||||||||
| (University of Hartford Issue) | ||||||||
| (Insured; Radian) | 5.63 | 7/1/26 | 1,810,000 | 1,872,210 | ||||
| Mashantucket Western Pequot Tribe, | ||||||||
| Special Revenue | 5.75 | 9/1/27 | 8,000,000 b | 7,644,560 | ||||
| Mashantucket Western Pequot Tribe, | ||||||||
| Special Revenue | 6.50 | 9/1/31 | 3,500,000 | 3,560,865 |
10
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| Florida—9.4% | ||||||||
| Broward County Housing Finance | ||||||||
| Authority, MFHR (Emerald Palms | ||||||||
| Apartments Project) | 5.60 | 7/1/21 | 1,935,000 | 1,950,538 | ||||
| Broward County Housing Finance | ||||||||
| Authority, MFHR (Pembroke | ||||||||
| Villas Project) (Insured; FSA) | 5.55 | 1/1/23 | 1,000,000 | 1,003,940 | ||||
| Broward County School Board, | ||||||||
| COP (Master Lease Purchase | ||||||||
| Agreement) (Insured; FSA) | 5.00 | 7/1/21 | 1,250,000 | 1,297,012 | ||||
| Capital Projects Finance | ||||||||
| Authority, Revenue | ||||||||
| (Capital Projects Loan | ||||||||
| Program-AAAE Airport | ||||||||
| Projects) (Insured; MBIA) | 5.25 | 6/1/14 | 1,485,000 | 1,563,646 | ||||
| Capital Projects Finance | ||||||||
| Authority, Student Housing | ||||||||
| Revenue (Capital Projects Loan | ||||||||
| Program-Florida Universities) | ||||||||
| (Insured; MBIA) | 5.50 | 10/1/17 | 2,520,000 | 2,631,157 | ||||
| Escambia County Housing Finance | ||||||||
| Authority, SFMR (Multi-County | ||||||||
| Program) (Collateralized: FNMA | ||||||||
| and GNMA) | 5.50 | 10/1/21 | 1,770,000 | 1,784,956 | ||||
| Florida Board of Education, | ||||||||
| Lottery Revenue | ||||||||
| (Insured; FGIC) | 5.00 | 7/1/20 | 1,480,000 | 1,525,628 | ||||
| Florida Department of Children and | ||||||||
| Family Services, COP (South | ||||||||
| Florida Evaluation Treatment | ||||||||
| Center Project) | 5.00 | 10/1/21 | 1,600,000 | 1,655,040 | ||||
| Florida Housing Finance Agency, | ||||||||
| Housing Revenue (Brittany of | ||||||||
| Rosemont Apartments Project) | ||||||||
| (Insured; AMBAC) | 7.00 | 2/1/35 | 6,000,000 | 6,004,740 | ||||
| Florida Intergovernmental Finance | ||||||||
| Commission, Capital Revenue | ||||||||
| (Insured; AMBAC) | 5.00 | 2/1/18 | 1,000,000 | 1,024,840 | ||||
| Florida Intergovernmental Finance | ||||||||
| Commission, Capital Revenue | ||||||||
| (Insured; AMBAC) | 5.13 | 2/1/31 | 1,500,000 | 1,510,785 | ||||
The Fund 11
STATEMENT OF INVESTMENTS (continued)
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| Florida (continued) | ||||||||
| Highlands County Health Facilities | ||||||||
| Authority, HR (Adventist | ||||||||
| Health System/Sunbelt | ||||||||
| Obligated Group) | 6.00 | 11/15/11 | 2,500,000 a | 2,781,600 | ||||
| Highlands County Health Facilities | ||||||||
| Authority, HR (Adventist | ||||||||
| Health System/Sunbelt | ||||||||
| Obligated Group) | 5.25 | 11/15/36 | 9,480,000 | 9,294,287 | ||||
| Lee County Housing Finance | ||||||||
| Authority, SFMR | ||||||||
| (Collateralized: FHLMC, | ||||||||
| FNMA and GNMA) | 6.30 | 3/1/29 | 100,000 | 101,451 | ||||
| Manatee County Housing Finance | ||||||||
| Authority, SFMR | ||||||||
| (Collateralized; GNMA) | 5.85 | 11/1/33 | 1,165,000 | 1,203,084 | ||||
| Miami-Dade County, | ||||||||
| Aviation Revenue, Miami | ||||||||
| International Airport | ||||||||
| (Hub of the Americas) | ||||||||
| (Insured; FSA) | 5.00 | 10/1/33 | 1,285,000 | 1,219,426 | ||||
| Miami-Dade County, | ||||||||
| Solid Waste System Revenue | ||||||||
| (Insured; FSA) | 5.50 | 10/1/17 | 2,595,000 | 2,787,938 | ||||
| Miami-Dade County Housing Finance | ||||||||
| Authority, MFMR (Country Club | ||||||||
| Villas II Project) (Insured; FSA) | 5.70 | 7/1/21 | 400,000 | 405,852 | ||||
| Orange County Housing Finance | ||||||||
| Authority, MFHR (Palm Grove | ||||||||
| Gardens) (Collateralized; FNMA) | 5.15 | 1/1/23 | 1,175,000 | 1,194,693 | ||||
| Orange County Housing Finance | ||||||||
| Authority, MFHR (Seminole | ||||||||
| Pointe Apartments) | 5.75 | 12/1/23 | 2,840,000 | 2,835,484 | ||||
| Osceola County Industrial | ||||||||
| Development Authority, Revenue | ||||||||
| (Community Provider Pooled | ||||||||
| Loan Program) | 7.75 | 7/1/17 | 953,000 | 953,457 | ||||
| Palm Bay, | ||||||||
| Educational Facilities Revenue | ||||||||
| (Patriot Charter School Project) | 7.00 | 7/1/36 | 1,715,000 | 1,701,211 | ||||
| Palm Bay, | ||||||||
| Utility System Improvement | ||||||||
| Revenue (Insured; FGIC) | 0.00 | 10/1/20 | 1,845,000 i | 997,444 | ||||
12
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| Florida (continued) | ||||||||
| Port of Palm Beach District, | ||||||||
| Revenue (Insured; XLCA) | 0.00 | 9/1/23 | 1,000,000 i | 466,790 | ||||
| Port Saint Lucie, | ||||||||
| Utility System Revenue | ||||||||
| (Insured; MBIA) | 0.00 | 9/1/33 | 4,000,000 i | 967,800 | ||||
| Seminole Water Control District, | ||||||||
| Improvement Bonds (Unit of | ||||||||
| Development Number 2) | 6.75 | 8/1/22 | 1,680,000 | 1,693,507 | ||||
| South Indian River Water Control | ||||||||
| District, Special Assessment | ||||||||
| Revenue Improvement (Unit of | ||||||||
| Development RI-13) (Insured; MBIA) | 5.00 | 8/1/21 | 1,095,000 | 1,124,193 | ||||
| Village Center Community | ||||||||
| Development District, Utility | ||||||||
| Revenue (Insured; MBIA) | 5.25 | 10/1/23 | 1,000,000 | 1,054,770 | ||||
| Winter Park, | ||||||||
| Water and Sewer Revenue | ||||||||
| (Insured; AMBAC) | 5.38 | 12/1/18 | 1,730,000 | 1,838,765 | ||||
| Winter Springs, | ||||||||
| Water and Sewer Revenue | ||||||||
| (Insured; MBIA) | 5.00 | 4/1/20 | 1,585,000 | 1,639,651 | ||||
| Georgia—1.8% | ||||||||
| College Park Business and | ||||||||
| Industrial Development | ||||||||
| Authority, Revenue (Civic | ||||||||
| Center Project) (Insured; AMBAC) | 5.75 | 9/1/10 | 4,250,000 a | 4,645,462 | ||||
| Georgia | 5.25 | 7/1/10 | 5,000,000 a | 5,305,300 | ||||
| Rockdale County Development | ||||||||
| Authority, Project Revenue | ||||||||
| (Visy Paper Project) | 6.13 | 1/1/34 | 1,000,000 | 969,740 | ||||
| Illinois—4.2% | ||||||||
| Chicago, | ||||||||
| SFMR (Collateralized: FHLMC, | ||||||||
| FNMA and GNMA) | 6.45 | 9/1/29 | 1,700,000 | 1,726,571 | ||||
| Chicago Board of Education, | ||||||||
| Unlimited Tax GO (Dedicated | ||||||||
| Revenues) | 5.25 | 12/1/25 | 10,000,000 d | 10,445,700 | ||||
| Illinois Development Finance | ||||||||
| Authority, Revenue (Community | ||||||||
| Rehabilitation Providers | ||||||||
| Facilities Acquisition Program) | 8.75 | 3/1/10 | 67,000 | 67,365 |
The Fund 13
STATEMENT OF INVESTMENTS (continued)
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| Illinois (continued) | ||||||||
| Illinois Development Finance | ||||||||
| Authority, Revenue (Community | ||||||||
| Rehabilitation Providers | ||||||||
| Facilities Acquisition Program) | 8.25 | 8/1/12 | 216,484 | 185,356 | ||||
| Illinois Educational Facilities | ||||||||
| Authority, Revenue | ||||||||
| (Northwestern University) | 5.00 | 12/1/38 | 7,500,000 | 7,590,750 | ||||
| Metropolitan Pier and Exposition | ||||||||
| Authority, Dedicated State Tax | ||||||||
| Revenue (McCormick Place | ||||||||
| Expansion Project) | ||||||||
| (Insured; MBIA) | 5.50 | 6/15/23 | 5,000,000 | 5,318,950 | ||||
| Kansas—1.3% | ||||||||
| Sedgwick and Shawnee Counties, | ||||||||
| SFMR (Mortgage-Backed | ||||||||
| Securities Program) | ||||||||
| (Collateralized: FNMA and GNMA) | 5.55 | 6/1/38 | 2,630,000 | 2,639,047 | ||||
| Wichita, | ||||||||
| HR (Via Christi Health System, Inc.) | 6.25 | 11/15/19 | 2,000,000 | 2,153,580 | ||||
| Wichita, | ||||||||
| HR (Via Christi Health System, Inc.) | 6.25 | 11/15/20 | 3,000,000 | 3,230,370 | ||||
| Kentucky—2.2% | ||||||||
| Mount Sterling, | ||||||||
| LR (Kentucky League of Cities | ||||||||
| Funding Trust Program) | 6.10 | 3/1/18 | 5,500,000 | 6,296,840 | ||||
| Pendleton County, | ||||||||
| Multi-County LR (Kentucky | ||||||||
| Association of Counties | ||||||||
| Leasing Trust Program) | 6.40 | 3/1/19 | 6,000,000 | 6,968,220 | ||||
| Louisiana—1.2% | ||||||||
| Louisiana Housing Finance Agency, | ||||||||
| SFMR (Home Ownership Program) | ||||||||
| (Collateralized: FNMA and GNMA) | 6.40 | 12/1/30 | 1,510,000 | 1,539,143 | ||||
| Louisiana Local Government | ||||||||
| Environmental Facilities and | ||||||||
| Community Development | ||||||||
| Authority, Revenue (Westlake | ||||||||
| Chemical Corporation Projects) | 6.75 | 11/1/32 | 5,000,000 | 4,926,450 | ||||
| Saint James Parish, | ||||||||
| SWDR (Freeport-McMoRan | ||||||||
| Partnership Project) | 7.70 | 10/1/22 | 1,000,000 | 1,000,610 |
14
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| Maryland—.3% | ||||||||
| Maryland Energy Financing | ||||||||
| Administration, SWDR | ||||||||
| (Wheelabrator Water Technologies | ||||||||
| Baltimore LLC Projects) | 6.45 | 12/1/16 | 2,100,000 | 2,121,672 | ||||
| Massachusetts—2.7% | ||||||||
| Massachusetts Health and | ||||||||
| Educational Facilities | ||||||||
| Authority, Revenue | ||||||||
| (Massachusetts Institute of | ||||||||
| Technology Issue) | 5.25 | 7/1/30 | 9,485,000 | 10,504,163 | ||||
| Massachusetts Industrial Finance | ||||||||
| Agency, Water Treatment Revenue | ||||||||
| (Massachusetts-American | ||||||||
| Hingham Project) | 6.95 | 12/1/35 | 2,450,000 | 2,455,463 | ||||
| Route 3 North Transportation | ||||||||
| Improvement Association, LR | ||||||||
| (Insured; MBIA) | 5.75 | 6/15/10 | 3,000,000 a | 3,206,910 | ||||
| Michigan—5.3% | ||||||||
| Detroit School District, | ||||||||
| School Building and Site | ||||||||
| Improvement Bonds (GO— | ||||||||
| Unlimited Tax) (Insured; FGIC) | 5.00 | 5/1/28 | 5,000,000 | 5,084,000 | ||||
| Michigan Building Authority, | ||||||||
| Revenue (Residual Certificates) | 5.50 | 10/15/17 | 10,000,000 b,c | 10,620,800 | ||||
| Michigan Strategic Fund, | ||||||||
| SWDR (Genesee Power | ||||||||
| Station Project) | 7.50 | 1/1/21 | 7,525,000 | 7,157,027 | ||||
| Pontiac Tax Increment Finance | ||||||||
| Authority, Tax Increment | ||||||||
| Revenue (Development Area | ||||||||
| Number 3) | 6.25 | 6/1/12 | 2,640,000 a | 2,976,468 | ||||
| Pontiac Tax Increment Finance | ||||||||
| Authority, Tax Increment | ||||||||
| Revenue (Development Area | ||||||||
| Number 3) | 6.25 | 6/1/22 | 610,000 | 508,307 | ||||
| Romulus Economic Development | ||||||||
| Corporation, Limited | ||||||||
| Obligation EDR (Romulus HIR | ||||||||
| Limited Partnership Project) | ||||||||
| (Insured; ITT Lyndon Property | ||||||||
| Insurance Company) | 7.00 | 11/1/15 | 5,000,000 | 6,075,300 | ||||
The Fund 15
STATEMENT OF INVESTMENTS (continued)
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| Minnesota—1.7% | ||||||||
| Chaska, | ||||||||
| Electric Revenue | 6.00 | 10/1/10 | 2,000,000 a | 2,156,700 | ||||
| Minnesota Housing Finance Agency, | ||||||||
| SFMR | 5.95 | 1/1/17 | 425,000 | 430,788 | ||||
| Saint Paul Housing and | ||||||||
| Redevelopment Authority, | ||||||||
| Hospital Facility Revenue | ||||||||
| (HealthEast Project) | 6.00 | 11/15/30 | 3,000,000 | 2,994,390 | ||||
| Saint Paul Housing and | ||||||||
| Redevelopment Authority, | ||||||||
| Hospital Facility Revenue | ||||||||
| (HealthEast Project) | 6.00 | 11/15/35 | 4,855,000 | 4,832,133 | ||||
| Mississippi—.3% | ||||||||
| Mississippi Home Corporation, | ||||||||
| SFMR (Collateralized; GNMA) | 6.95 | 12/1/31 | 1,700,000 | 1,760,214 | ||||
| Missouri—1.3% | ||||||||
| Missouri Development Finance | ||||||||
| Board, Infrastructure | ||||||||
| Facilities Revenue (Branson | ||||||||
| Landing Project) | 5.38 | 12/1/27 | 2,470,000 | 2,352,107 | ||||
| Missouri Development Finance | ||||||||
| Board, Infrastructure | ||||||||
| Facilities Revenue (Branson | ||||||||
| Landing Project) | 5.00 | 6/1/35 | 1,400,000 | 1,236,592 | ||||
| Missouri Health and Educational | ||||||||
| Facilities Authority, Health | ||||||||
| Facilities Revenue (Saint | ||||||||
| Anthony’s Medical Center) | 6.13 | 12/1/10 | 4,000,000 a | 4,388,600 | ||||
| Missouri Housing Development | ||||||||
| Commission, SFMR | ||||||||
| (Homeownership Loan Program) | ||||||||
| (Collateralized: FNMA and GNMA) | 6.30 | 9/1/25 | 95,000 | 96,296 | ||||
| New Jersey—8.3% | ||||||||
| New Jersey Economic Development | ||||||||
| Authority, School Facilities | ||||||||
| Construction Revenue | ||||||||
| (Insured; AMBAC) | 5.25 | 6/15/11 | 5,000,000 a | 5,382,450 | ||||
| New Jersey Economic Development | ||||||||
| Authority, School Facilities | ||||||||
| Construction Revenue | ||||||||
| (Insured; AMBAC) | 5.25 | 6/15/11 | 5,000,000 a | 5,382,450 |
16
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| New Jersey (continued) | ||||||||
| New Jersey Transportation Trust | ||||||||
| Fund Authority (Transportation | ||||||||
| System) (Insured; AMBAC) | 5.00 | 12/15/27 | 10,000,000 | 10,347,100 | ||||
| New Jersey Turnpike Authority, | ||||||||
| Turnpike Revenue (Insured; MBIA) | 5.50 | 1/1/10 | 6,000,000 a | 6,301,860 | ||||
| New Jersey Turnpike Authority, | ||||||||
| Turnpike Revenue (Insured; MBIA) | 6.00 | 1/1/11 | 12,700,000 b,c | 13,758,228 | ||||
| Tobacco Settlement Financing | ||||||||
| Corporation of New Jersey, | ||||||||
| Tobacco Settlement | ||||||||
| Asset-Backed Bonds | 7.00 | 6/1/13 | 5,135,000 a | 6,036,090 | ||||
| Tobacco Settlement Financing | ||||||||
| Corporation of New Jersey, | ||||||||
| Tobacco Settlement | ||||||||
| Asset-Backed Bonds | 5.00 | 6/1/41 | 4,045,000 | 3,237,537 | ||||
| New Mexico—1.1% | ||||||||
| Farmington, | ||||||||
| PCR (Public Service Company of | ||||||||
| New Mexico San Juan Project) | 6.38 | 4/1/22 | 1,430,000 | 1,432,874 | ||||
| Jicarilla Apache Nation, | ||||||||
| Revenue | 5.50 | 9/1/23 | 5,000,000 | 5,188,900 | ||||
| New York—7.8% | ||||||||
| New York City Industrial | ||||||||
| Development Agency, Special | ||||||||
| Facility Revenue (American | ||||||||
| Airlines, Inc. John F. Kennedy | ||||||||
| International Airport Project) | 7.13 | 8/1/11 | 3,555,000 | 3,534,879 | ||||
| New York City Industrial | ||||||||
| Development Agency, Special | ||||||||
| Facility Revenue (American | ||||||||
| Airlines, Inc. John F. Kennedy | ||||||||
| International Airport Project) | 8.00 | 8/1/28 | 3,000,000 | 3,002,940 | ||||
| New York City Municipal Water | ||||||||
| Finance Authority, Water and | ||||||||
| Sewer System Revenue | 6.00 | 6/15/10 | 3,085,000 a | 3,347,688 | ||||
| New York State Dormitory | ||||||||
| Authority, Revenue | ||||||||
| (Columbia University) | 5.00 | 7/1/31 | 5,000,000 | 5,169,000 | ||||
| New York State Dormitory | ||||||||
| Authority, Revenue | ||||||||
| (Columbia University) | 5.00 | 7/1/38 | 6,000,000 | 6,207,600 |
The Fund 17
STATEMENT OF INVESTMENTS (continued)
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| New York (continued) | ||||||||
| New York State Dormitory | ||||||||
| Authority, Revenue (New York | ||||||||
| University) (Insured; MBIA) | 6.00 | 7/1/17 | 3,500,000 | 4,131,400 | ||||
| New York State Dormitory | ||||||||
| Authority, Revenue (Orange | ||||||||
| Regional Medical Center | ||||||||
| Obligated Group) | 6.25 | 12/1/37 | 5,000,000 d | 5,013,100 | ||||
| New York State Dormitory | ||||||||
| Authority, Revenue (Rochester | ||||||||
| Institute of Technology) | ||||||||
| (Insured; AMBAC) | 5.25 | 7/1/24 | 3,345,000 | 3,444,313 | ||||
| New York State Dormitory | ||||||||
| Authority, Revenue (State | ||||||||
| University Educational Facilities) | 7.50 | 5/15/13 | 2,500,000 | 2,986,525 | ||||
| Port Authority of New York and New | ||||||||
| Jersey (Consolidated Bonds, | ||||||||
| 151st Series) | 6.00 | 9/15/28 | 9,690,000 | 10,297,466 | ||||
| North Carolina—2.1% | ||||||||
| North Carolina Eastern Municipal | ||||||||
| Power Agency, Power | ||||||||
| System Revenue | 7.00 | 1/1/13 | 3,500,000 | 3,894,100 | ||||
| North Carolina Eastern Municipal | ||||||||
| Power Agency, Power System | ||||||||
| Revenue (Insured; ACA) | 6.75 | 1/1/26 | 5,000,000 | 5,243,950 | ||||
| North Carolina Medical Care | ||||||||
| Commission, Revenue (North | ||||||||
| Carolina Housing Foundation, Inc.) | ||||||||
| (Insured; ACA) | 6.45 | 8/15/20 | 1,000,000 | 1,006,670 | ||||
| North Carolina Medical Care | ||||||||
| Commission, Revenue (North | ||||||||
| Carolina Housing Foundation, Inc.) | ||||||||
| (Insured; ACA) | 6.63 | 8/15/30 | 2,565,000 | 2,573,670 | ||||
| Ohio—5.3% | ||||||||
| Buckeye Tobacco Settlement | ||||||||
| Financing Authority, | ||||||||
| Tobacco Settlement | ||||||||
| Asset-Backed Bonds | 6.50 | 6/1/47 | 16,000,000 | 15,622,400 | ||||
| Cleveland-Cuyahoga County Port | ||||||||
| Authority, Senior Special | ||||||||
| Assessment/Tax Increment | ||||||||
| Revenue (University Heights— | ||||||||
| Public Parking Garage Project) | 7.35 | 12/1/31 | 3,000,000 | 3,159,450 | ||||
18
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| Ohio (continued) | ||||||||
| Cuyahoga County, | ||||||||
| Hospital Facilities Revenue | ||||||||
| (UHHS/CSAHS-Cuyahoga, Inc. and | ||||||||
| CSAHS/UHHS-Canton, Inc. Project) | 7.50 | 1/1/30 | 7,000,000 | 7,517,930 | ||||
| Hamilton County, | ||||||||
| Sales Tax Refunding and | ||||||||
| Improvement Bonds | ||||||||
| (Insured; AMBAC) | 0.00 | 12/1/25 | 14,865,000 i | 6,047,528 | ||||
| Oklahoma—1.2% | ||||||||
| McGee Creek Authority, | ||||||||
| Water Revenue (Insured; MBIA) | 6.00 | 1/1/13 | 6,880,000 | 7,356,096 | ||||
| Oregon—.6% | ||||||||
| Portland, | ||||||||
| Sewer System Revenue | ||||||||
| (Insured; FGIC) | 5.75 | 8/1/10 | 3,500,000 a | 3,753,960 | ||||
| Pennsylvania—4.5% | ||||||||
| Butler County Industrial | ||||||||
| Development Authority, Health | ||||||||
| Care Facilities Revenue (Saint | ||||||||
| John Lutheran Care Center | ||||||||
| Project) (Collateralized; GNMA) | 5.85 | 4/20/36 | 4,210,000 | 4,342,952 | ||||
| Dauphin County General Authority, | ||||||||
| Health System Revenue | ||||||||
| (Pinnacle Health System | ||||||||
| Project) (Insured; FSA) | 4.00 | 8/15/34 | 8,000,000 e | 8,000,000 | ||||
| Pennsylvania Economic Development | ||||||||
| Financing Authority, SWDR | ||||||||
| (USG Corporation Project) | 6.00 | 6/1/31 | 5,000,000 | 4,649,400 | ||||
| Pennsylvania Turnpike Commission, | ||||||||
| Registration Fee Revenue | ||||||||
| (Insured; FSA) | 5.25 | 7/15/28 | 9,375,000 | 10,353,938 | ||||
| South Carolina—2.0% | ||||||||
| Greenville County School District, | ||||||||
| Installment Purchase Revenue | ||||||||
| (Building Equity Sooner for | ||||||||
| Tomorrow) | 5.50 | 12/1/12 | 10,900,000 a,b,c | 12,221,516 | ||||
| Tennessee—2.3% | ||||||||
| Johnson City Health and Educational | ||||||||
| Facilities Board, Hospital First | ||||||||
| Mortgage Revenue (Mountain | ||||||||
| States Health Alliance) | 5.50 | 7/1/31 | 7,455,000 | 7,062,271 |
The Fund 19
STATEMENT OF INVESTMENTS (continued)
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| Tennessee (continued) | ||||||||
| Memphis Center City Revenue | ||||||||
| Finance Corporation, Sports | ||||||||
| Facility Revenue (Memphis | ||||||||
| Redbirds Baseball | ||||||||
| Foundation Project) | 6.50 | 9/1/28 | 8,000,000 | 7,213,120 | ||||
| Shelby County Health, Educational | ||||||||
| and Housing Facility Board, | ||||||||
| MFHR (Cameron at Kirby Parkway | ||||||||
| and Stonegate Apartments) | 7.25 | 7/1/23 | 2,685,000 f | 27 | ||||
| Texas—5.5% | ||||||||
| Alliance Airport Authority Inc., | ||||||||
| Special Facilities Revenue | ||||||||
| (American Airlines, Inc. Project) | 5.75 | 12/1/29 | 3,000,000 | 1,876,170 | ||||
| Austin Convention Enterprises | ||||||||
| Inc., Convention Center Hotel | ||||||||
| First Tier Revenue | 6.70 | 1/1/11 | 5,000,000 a | 5,493,200 | ||||
| Brazos River Harbor Navigation | ||||||||
| District, Revenue (The Dow | ||||||||
| Chemical Company Project) | 4.95 | 5/15/33 | 2,600,000 | 2,274,298 | ||||
| Cities of Dallas and Fort Worth, | ||||||||
| Dallas/Fort Worth | ||||||||
| International Airport, Joint | ||||||||
| Revenue (Insured; FSA) | 5.50 | 11/1/21 | 3,000,000 | 3,084,450 | ||||
| North Texas Tollway Authority, | ||||||||
| System Revenue | 5.63 | 1/1/33 | 5,000,000 | 5,102,350 | ||||
| North Texas Tollway Authority, | ||||||||
| System Revenue | 5.75 | 1/1/40 | 11,850,000 | 12,158,219 | ||||
| Texas Turnpike Authority, | ||||||||
| Central Texas Turnpike System | ||||||||
| Revenue (Insured; AMBAC) | 5.75 | 8/15/38 | 3,500,000 | 3,638,285 | ||||
| Washington—2.1% | ||||||||
| Washington Public Power Supply | ||||||||
| System, Revenue (Nuclear | ||||||||
| Project Number 3) (Insured; MBIA) | 7.13 | 7/1/16 | 10,425,000 | 12,921,892 |
20
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
| West Virginia—1.0% | ||||||||
| The County Commission of | ||||||||
| Pleasants County, PCR | ||||||||
| (Allegheny Energy Supply | ||||||||
| Company, LLC Pleasants | ||||||||
| Station Project) | 5.25 | 10/15/37 | 3,500,000 | 3,328,990 | ||||
| West Virginia Hospital Finance | ||||||||
| Authority, HR (Charleston Area | ||||||||
| Medical Center, Inc.) | 6.00 | 9/1/10 | 2,440,000 a | 2,654,256 | ||||
| Wisconsin—3.9% | ||||||||
| Badger Tobacco Asset | ||||||||
| Securitization Corporation, | ||||||||
| Tobacco Settlement | ||||||||
| Asset-Backed Bonds | 6.13 | 6/1/27 | 4,435,000 | 4,445,023 | ||||
| Badger Tobacco Asset | ||||||||
| Securitization Corporation, | ||||||||
| Tobacco Settlement | ||||||||
| Asset-Backed Bonds | 7.00 | 6/1/28 | 13,350,000 | 13,768,122 | ||||
| Wisconsin Health and | ||||||||
| Educational Facilities | ||||||||
| Authority, Revenue | ||||||||
| (Aurora Health Care, Inc.) | 6.40 | 4/15/33 | 5,500,000 | 5,650,755 | ||||
| U.S. Related—2.9% | ||||||||
| Puerto Rico Commonwealth, | ||||||||
| Public Improvement | ||||||||
| (Insured; MBIA) | 5.25 | 7/1/13 | 6,000,000 | 6,378,480 | ||||
| Puerto Rico Commonwealth, | ||||||||
| Public Improvement | ||||||||
| (Insured; MBIA) | 5.65 | 7/1/15 | 4,000,000 | 4,423,120 | ||||
| Puerto Rico Electric Power | ||||||||
| Authority, Power Revenue | ||||||||
| (Insured; FSA) | 5.25 | 7/1/27 | 6,100,000 | 6,560,611 | ||||
| Total Long-Term | ||||||||
| Municipal Investments | ||||||||
| (cost $614,466,037) | 625,347,525 | |||||||
The Fund 21
STATEMENT OF INVESTMENTS (continued)
| Short-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments—2.0% | Rate (%) | Date | Amount ($) | Value ($) | ||||
| Arizona—.4% | ||||||||
| Arizona Sports and Tourism | ||||||||
| Authority, Senior Revenue | ||||||||
| (Multipurpose Stadium Facility | ||||||||
| Project) (Insured; AMBAC and | ||||||||
| Liquidity Facility; Royal Bank | ||||||||
| of Canada) | 5.00 | 5/7/08 | 2,400,000 g | 2,400,000 | ||||
| Pennsylvania—1.6% | ||||||||
| Chester County Industrial | ||||||||
| Development Authority, Revenue | ||||||||
| (Archdiocese of Philadelphia) | ||||||||
| (LOC; Wachovia Bank) | 2.50 | 5/1/08 | 5,000,000 g | 5,000,000 | ||||
| Pennsylvania Intergovernmental | ||||||||
| Cooperation Authority, Special | ||||||||
| Tax Revenue, Refunding (City | ||||||||
| of Philadelphia Funding | ||||||||
| Program) (Insured; AMBAC and | ||||||||
| Liquidity Facility; JPMorgan | ||||||||
| Chase Bank) | 10.00 | 5/7/08 | 4,500,000 g | 4,500,000 | ||||
| Total Short-Term Municipal Investments | ||||||||
| (cost $11,900,000) | 11,900,000 | |||||||
| Total Investments (cost $626,366,037) | 104.9% | 637,247,525 | ||||||
| Liabilities, Less Cash and Receivables | (4.9%) | (29,780,207) | ||||||
| Net Assets | 100.0% | 607,467,318 | ||||||
| a 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. |
| b Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in |
| transactions exempt from registration, normally to qualified institutional buyers.At April 30, 2008, these securities |
| amounted to $75,799,721 or 12.5% of net assets. |
| c Collateral for floating rate borrowings. |
| d Purchased on a delayed delivery basis. |
| e Variable rate security—interest rate subject to periodic change. |
| f Non-income producing security; interest payments in default. |
| g Securities payable on demand.Variable interest rate—subject to periodic change. |
| i Security issued with a zero coupon. Income is recognized through the accretion of discount. |
22
| Summary of Abbreviations | ||||||
| ACA | American Capital Access | AGC | ACE Guaranty Corporation | |||
| AGIC | Asset Guaranty Insurance | AMBAC | American Municipal Bond | |||
| Company | Assurance Corporation | |||||
| ARRN | Adjustable Rate Receipt Notes | BAN | Bond Anticipation Notes | |||
| BIGI | Bond Investors Guaranty Insurance | BPA | Bond Purchase Agreement | |||
| CGIC | Capital Guaranty Insurance | CIC | Continental Insurance | |||
| Company | Company | |||||
| CIFG | CDC Ixis Financial Guaranty | CMAC | Capital Market Assurance | |||
| Corporation | ||||||
| COP | Certificate of Participation | CP | Commercial Paper | |||
| 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 | FSA | Financial Security Assurance | ||||
| 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 | |||
| LOC | Letter of Credit | LOR | Limited Obligation Revenue | |||
| LR | Lease Revenue | MBIA | Municipal Bond Investors Assurance | |||
| Insurance Corporation | ||||||
| MFHR | Multi-Family Housing Revenue | MFMR | Multi-Family Mortgage Revenue | |||
| PCR | Pollution Control Revenue | PILOT | Payment in Lieu of Taxes | |||
| RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes | |||
| RAW | Revenue Anticipation Warrants | 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 | SWDR | Solid Waste Disposal Revenue | |||
| TAN | Tax Anticipation Notes | TAW | Tax Anticipation Warrants | |||
| TRAN | Tax and Revenue Anticipation Notes | XLCA | XL Capital Assurance | |||
The Fund 23
STATEMENT OF INVESTMENTS (continued)
| Summary of Combined Ratings (Unaudited) | ||||||||||
| Fitch | or | Moody’s | or | Standard & Poor’s | Value (%) † | |||||
| AAA | Aaa | AAA | 45.8 | |||||||
| AA | Aa | AA | 10.5 | |||||||
| A | A | A | 11.7 | |||||||
| BBB | Baa | BBB | 17.1 | |||||||
| BB | Ba | BB | 2.4 | |||||||
| B | B | B | 2.6 | |||||||
| CCC | Caa | CCC | .3 | |||||||
| F1 | MIG1/P1 | SP1/A1 | 2.0 | |||||||
| Not Rated h | Not Rated h | Not Rated h | 7.6 | |||||||
| 100.0 | ||||||||||
| † | Based on total investments. | |
| h | 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. | ||
24
| STATEMENT OF ASSETS AND LIABILITIES |
| April 30, 2008 |
| Cost | Value | |||||||
| Assets ($): | ||||||||
| Investments in securities—See Statement of Investments | 626,366,037 | 637,247,525 | ||||||
| Interest receivable | 10,823,064 | |||||||
| Receivable for investment securities sold | 9,217,775 | |||||||
| Receivable for shares of Beneficial Interest subscribed | 29,171 | |||||||
| Prepaid expenses and other assets | 166,469 | |||||||
| 657,484,004 | ||||||||
| Liabilities ($): | ||||||||
| Due to The Dreyfus Corporation and affiliates—Note 3(c) | 460,420 | |||||||
| Cash overdraft due to Custodian | 169,437 | |||||||
| Payable for floating rate notes issued—Note 4 | 30,855,000 | |||||||
| Payable for investment securities purchased | 17,827,475 | |||||||
| Interest and expense payable related | ||||||||
| to floating rate notes issued—Note 4 | 306,549 | |||||||
| Payable for shares of Beneficial Interest redeemed | 292,199 | |||||||
| Interest expense—Note 2 | 1,321 | |||||||
| Accrued expenses | 104,285 | |||||||
| 50,016,686 | ||||||||
| Net Assets ($) | 607,467,318 | |||||||
| Composition of Net Assets ($): | ||||||||
| Paid-in capital | 647,051,466 | |||||||
| Accumulated net realized gain (loss) on investments | (50,465,636) | |||||||
| Accumulated net unrealized appreciation | ||||||||
| (depreciation) on investments | 10,881,488 | |||||||
| Net Assets ($) | 607,467,318 | |||||||
| Net Asset Value Per Share | ||||||||
| Class A | Class B | Class C | Class Z | |||||
| Net Assets ($) | 300,982,004 | 9,731,887 | 12,585,762 | 284,167,665 | ||||
| Shares Outstanding | 23,954,127 | 774,098 | 1,000,162 | 22,615,956 | ||||
| Net Asset Value | ||||||||
| Per Share ($) | 12.56 | 12.57 | 12.58 | 12.56 | ||||
See notes to financial statements.
The Fund 25
| STATEMENT OF OPERATIONS |
| Year Ended April 30, 2008 |
| Investment Income ($): | ||
| Interest Income | 33,056,439 | |
| Expenses: | ||
| Management fee—Note 3(a) | 3,228,675 | |
| Shareholder servicing costs—Note 3(c) | 1,713,132 | |
| Interest and expense related to | ||
| floating rate notes issued—Note 4 | 1,347,071 | |
| Distribution fees—Note 3(b) | 134,137 | |
| Professional fees | 104,692 | |
| Registration fees | 60,417 | |
| Prospectus and shareholders’ reports | 56,653 | |
| Custodian fees—Note 3(c) | 35,110 | |
| Trustees’ fees and expenses—Note 3(d) | 20,193 | |
| Loan commitment fees—Note 2 | 5,588 | |
| Interest expense—Note 2 | 1,321 | |
| Miscellaneous | 49,902 | |
| Total Expenses | 6,756,891 | |
| Less—reduction in fees due to | ||
| earnings credits—Note 1(b) | (22,675) | |
| Net Expenses | 6,734,216 | |
| Investment Income—Net | 26,322,223 | |
| Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): | ||
| Net realized gain (loss) on investments | (5,136,389) | |
| Net realized gain (loss) on options transactions | (35,531) | |
| Net realized gain (loss) on financial futures | 140,987 | |
| Net Realized Gain (Loss) | (5,030,933) | |
| Net unrealized appreciation (depreciation) on investments | (19,790,039) | |
| Net Realized and Unrealized Gain (Loss) on Investments | (24,820,972) | |
| Net Increase in Net Assets Resulting from Operations | 1,501,251 | |
See notes to financial statements.
26
STATEMENT OF CHANGES IN NET ASSETS
| Year Ended April 30, | ||||
| 2008 | 2007 | |||
| Operations ($): | ||||
| Investment income—net | 26,322,223 | 25,791,982 | ||
| Net realized gain (loss) on investments | (5,030,933) | 7,266,776 | ||
| Net unrealized appreciation | ||||
| (depreciation) on investments | (19,790,039) | 1,640,847 | ||
| Net Increase (Decrease) in Net Assets | ||||
| Resulting from Operations | 1,501,251 | 34,699,605 | ||
| Dividends to Shareholders from ($): | ||||
| Investment income—net: | ||||
| Class A Shares | (12,205,656) | (11,054,595) | ||
| Class B Shares | (389,945) | (531,263) | ||
| Class C Shares | (422,610) | (351,765) | ||
| Class Z Shares | (13,297,453) | (13,825,064) | ||
| Total Dividends | (26,315,664) | (25,762,687) | ||
| Beneficial Interest Transactions ($): | ||||
| Net proceeds from shares sold: | ||||
| Class A Shares | 19,713,056 | 21,260,275 | ||
| Class B Shares | 1,335,172 | 881,966 | ||
| Class C Shares | 2,494,973 | 2,298,854 | ||
| Class Z Shares | 8,075,856 | 7,004,372 | ||
| Net assets received in connection | ||||
| with reorganization—Note 1 | 75,827,457 | — | ||
| Dividends reinvested: | ||||
| Class A Shares | 7,960,418 | 7,239,461 | ||
| Class B Shares | 230,569 | 324,589 | ||
| Class C Shares | 254,674 | 212,639 | ||
| Class Z Shares | 9,202,687 | 9,424,451 | ||
| Cost of shares redeemed: | ||||
| Class A Shares | (40,609,156) | (34,765,023) | ||
| Class B Shares | (6,958,891) | (6,100,476) | ||
| Class C Shares | (2,739,225) | (1,502,168) | ||
| Class Z Shares | (27,260,622) | (39,085,135) | ||
| Increase (Decrease) in Net Assets from | ||||
| Beneficial Interest Transactions | 47,526,968 | (32,806,195) | ||
| Total Increase (Decrease) in Net Assets | 22,712,555 | (23,869,277) | ||
| Net Assets ($): | ||||
| Beginning of Period | 584,754,763 | 608,624,040 | ||
| End of Period | 607,467,318 | 584,754,763 |
The Fund 27
STATEMENT OF CHANGES IN NET ASSETS (continued)
| Year Ended April 30, | ||||
| 2008 | 2007 | |||
| Capital Share Transactions: | ||||
| Class A a | ||||
| Shares sold | 1,538,513 | 1,627,875 | ||
| Shares issued in connection with | ||||
| reorganization—Note 1 | 5,433,955 | — | ||
| Shares issued for dividends reinvested | 627,299 | 553,508 | ||
| Shares redeemed | (3,188,279) | (2,664,815) | ||
| Net Increase (Decrease) in Shares Outstanding | 4,411,488 | (483,432) | ||
| Class B a | ||||
| Shares sold | 105,095 | 67,550 | ||
| Shares issued in connection with | ||||
| reorganization—Note 1 | 294,375 | — | ||
| Shares issued for dividends reinvested | 18,142 | 24,821 | ||
| Shares redeemed | (543,612) | (467,003) | ||
| Net Increase (Decrease) in Shares Outstanding | (126,000) | (374,632) | ||
| Class C | ||||
| Shares sold | 195,473 | 176,250 | ||
| Shares issued in connection with | ||||
| reorganization—Note 1 | 216,723 | — | ||
| Shares issued for dividends reinvested | 20,046 | 16,232 | ||
| Shares redeemed | (215,078) | (115,037) | ||
| Net Increase (Decrease) in Shares Outstanding | 217,164 | 77,445 | ||
| Class Z | ||||
| Shares sold | 625,853 | 535,049 | ||
| Shares issued for dividends reinvested | 724,521 | 720,799 | ||
| Shares redeemed | (2,136,912) | (2,993,455) | ||
| Net Increase (Decrease) in Shares Outstanding | (786,538) | (1,737,607) |
| a | During the period ended April 30, 2008, 280,628 Class B shares representing $3,590,148 were automatically | |
| converted to 280,789 Class A shares and during the period ended April 30, 2007, 189,232 Class B shares | ||
| representing $2,475,494 were automatically converted to 189,270 Class A shares. | ||
| See notes to financial statements. | ||
28
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the fiscal periods indicated.All information (except portfolio turnover rate) reflects financial results for a single fund share.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.
| Year Ended April 30, | ||||||||||
| Class A Shares | 2008 | 2007 | 2006 | 2005 | 2004 | |||||
| Per Share Data ($): | ||||||||||
| Net asset value, beginning of period | 13.10 | 12.91 | 13.12 | 12.81 | 13.04 | |||||
| Investment Operations: | ||||||||||
| Investment income—net a | .57 | .57 | .59 | .59 | .60 | |||||
| Net realized and unrealized | ||||||||||
| gain (loss) on investments | (.54) | .18 | (.21) | .31 | (.24) | |||||
| Total from Investment Operations | .03 | .75 | .38 | .90 | .36 | |||||
| Distributions: | ||||||||||
| Dividends from investment income—net | (.57) | (.56) | (.59) | (.59) | (.59) | |||||
| Net asset value, end of period | 12.56 | 13.10 | 12.91 | 13.12 | 12.81 | |||||
| Total Return (%) b | .28 | 5.94 | 2.93 | 7.18 | 2.80 | |||||
| Ratios/Supplemental Data (%): | ||||||||||
| Ratio of total expenses | ||||||||||
| to average net assets | 1.17 | 1.16 | 1.09 | 1.03 | 1.00 | |||||
| Ratio of net expenses | ||||||||||
| to average net assets | 1.17c | 1.16c | 1.09c | 1.02 | 1.00 | |||||
| Ratio of net investment income | ||||||||||
| to average net assets | 4.49 | 4.33 | 4.51 | 4.54 | 4.57 | |||||
| Portfolio Turnover Rate | 77.20 | 68.06 | 48.31 | 48.30 | 91.43 | |||||
| Net Assets, end of period ($ x 1,000) | 300,982 | 256,047 | 258,504 | 279,612 | 293,083 | |||||
| a | Based on average shares outstanding at each month end. | |
| b | Exclusive of sales charge. | |
| c | Expense waivers and/or reimbursements amounted to less than .01%. | |
| See notes to financial statements. | ||
The Fund 29
FINANCIAL HIGHLIGHTS (continued)
| Year Ended April 30, | ||||||||||
| Class B Shares | 2008 | 2007 | 2006 | 2005 | 2004 | |||||
| Per Share Data ($): | ||||||||||
| Net asset value, beginning of period | 13.11 | 12.91 | 13.12 | 12.82 | 13.05 | |||||
| Investment Operations: | ||||||||||
| Investment income—net a | .49 | .49 | .52 | .52 | .53 | |||||
| Net realized and unrealized | ||||||||||
| gain (loss) on investments | (.53) | .21 | (.21) | .31 | (.23) | |||||
| Total from Investment Operations | (.04) | .70 | .31 | .83 | .30 | |||||
| Distributions: | ||||||||||
| Dividends from investment income—net | (.50) | (.50) | (.52) | (.53) | (.53) | |||||
| Net asset value, end of period | 12.57 | 13.11 | 12.91 | 13.12 | 12.82 | |||||
| Total Return (%) b | (.25) | 5.48 | 2.40 | 6.64 | 2.20 | |||||
| Ratios/Supplemental Data (%): | ||||||||||
| Ratio of total expenses | ||||||||||
| to average net assets | 1.67 | 1.67 | 1.61 | 1.54 | 1.51 | |||||
| Ratio of net expenses | ||||||||||
| to average net assets | 1.67c | 1.67c | 1.61c | 1.54c | 1.51 | |||||
| Ratio of net investment income | ||||||||||
| to average net assets | 3.95 | 3.81 | 3.99 | 4.02 | 4.06 | |||||
| Portfolio Turnover Rate | 77.20 | 68.06 | 48.31 | 48.30 | 91.43 | |||||
| Net Assets, end of period ($ x 1,000) | 9,732 | 11,799 | 16,462 | 21,192 | 29,471 | |||||
| a | Based on average shares outstanding at each month end. | |
| b | Exclusive of sales charge. | |
| c | Expense waivers and/or reimbursements amounted to less than .01%. | |
| See notes to financial statements. | ||
30
| Year Ended April 30, | ||||||||||
| Class C Shares | 2008 | 2007 | 2006 | 2005 | 2004 | |||||
| Per Share Data ($): | ||||||||||
| Net asset value, beginning of period | 13.12 | 12.93 | 13.14 | 12.83 | 13.06 | |||||
| Investment Operations: | ||||||||||
| Investment income—net a | .47 | .47 | .49 | .49 | .50 | |||||
| Net realized and unrealized | ||||||||||
| gain (loss) on investments | (.53) | .19 | (.21) | .32 | (.23) | |||||
| Total from Investment Operations | (.06) | .66 | .28 | .81 | .27 | |||||
| Distributions: | ||||||||||
| Dividends from investment income—net | (.48) | (.47) | (.49) | (.50) | (.50) | |||||
| Net asset value, end of period | 12.58 | 13.12 | 12.93 | 13.14 | 12.83 | |||||
| Total Return (%) b | (.46) | 5.16 | 2.18 | 6.40 | 2.06 | |||||
| Ratios/Supplemental Data (%): | ||||||||||
| Ratio of total expenses | ||||||||||
| to average net assets | 1.91 | 1.89 | 1.82 | 1.76 | 1.73 | |||||
| Ratio of net expenses | ||||||||||
| to average net assets | 1.91c | 1.89c | 1.82c | 1.76c | 1.73 | |||||
| Ratio of net investment income | ||||||||||
| to average net assets | 3.74 | 3.58 | 3.78 | 3.81 | 3.84 | |||||
| Portfolio Turnover Rate | 77.20 | 68.06 | 48.31 | 48.30 | 91.43 | |||||
| Net Assets, end of period ($ x 1,000) | 12,586 | 10,274 | 9,121 | 9,158 | 11,261 | |||||
| a | Based on average shares outstanding at each month end. | |
| b | Exclusive of sales charge. | |
| c | Expense waivers and/or reimbursements amounted to less than .01%. | |
| See notes to financial statements. | ||
The Fund 31
FINANCIAL HIGHLIGHTS (continued)
| Year Ended April 30, | ||||||||
| Class Z Shares | 2008 | 2007 | 2006 | 2005 a | ||||
| Per Share Data ($): | ||||||||
| Net asset value, beginning of period | 13.10 | 12.91 | 13.12 | 13.09 | ||||
| Investment Operations: | ||||||||
| Investment income—net b | .58 | .57 | .60 | .32 | ||||
| Net realized and unrealized | ||||||||
| gain (loss) on investments | (.54) | .19 | (.21) | .03 | ||||
| Total from Investment Operations | .04 | .76 | .39 | .35 | ||||
| Distributions: | ||||||||
| Dividends from investment income—net | (.58) | (.57) | (.60) | (.32) | ||||
| Net asset value, end of period | 12.56 | 13.10 | 12.91 | 13.12 | ||||
| Total Return (%) c | .33 | 6.00 | 2.99 | 2.71d | ||||
| Ratios/Supplemental Data (%): | ||||||||
| Ratio of total expenses to average net assets | 1.08 | 1.10 | 1.03 | .98f | ||||
| Ratio of net expenses to average net assets | 1.08e | 1.10e | 1.03e | .96f | ||||
| Ratio of net investment income | ||||||||
| to average net assets | 4.53 | 4.38 | 4.57 | 4.49f | ||||
| Portfolio Turnover Rate | 77.20 | 68.06 | 48.31 | 48.30 | ||||
| Net Assets, end of period ($ x 1,000) | 284,168 | 306,634 | 324,537 | 350,202 | ||||
| a | From October 14, 2004 (commencement of initial offering) to April 30, 2005. | |
| b | Based on average shares outstanding at each month end. | |
| c | Exclusive of sales charge. | |
| d | Not annualized. | |
| e | Expense waivers and/or reimbursements amounted to less than .01%. | |
| f | Annualized. | |
| See notes to financial statements. | ||
32
NOTES TO FINANCIAL STATEMENTS
NOTE 1—Significant Accounting Policies:
Dreyfus Premier 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 income tax to the extent consistent with the preservation of cap-ital.The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser.
On July 1, 2007, Mellon Financial Corporation and The Bank of New York Company, Inc. merged, forming The Bank of New York Mellon Corporation (“BNY Mellon”). As part of this transaction, Dreyfus became a wholly-owned subsidiary of BNY Mellon.
As of the close of business on November 27, 2007, pursuant to an Agreement and Plan of Reorganization previously approved by the fund’s Board of Trustees, all of the assets, subject to the liabilities, of Dreyfus Premier State Municipal Bond Fund, Florida Series (“Florida Series”) were transferred to the fund in exchange for corresponding class of shares of Beneficial Interest of the fund of equal value. Shareholders of Class A, Class B and Class C shares of the Florida Series received Class A, Class B and Class C shares of the fund, respectively, in each case in an equal amount to the aggregate net asset value of their investment in the Florida Series at the time of the exchange. The net asset value of the fund’s shares on the close of business on November 27, 2007, after the reorganization, was $12.75 for Class A, $12.76 for Class B and $12.77 for Class C, and a total of 5,433,955 Class A shares, 294,375 Class B shares and 216,723 Class C shares, representing net assets of $75,827,457 (including $1,541,384 net unrealized appreciation on investments) were issued to the Florida Series shareholders in the exchange. The exchange was a tax-free event to the Florida Series shareholders.
MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares.The fund is authorized to issue an unlimited number of $.001 par value shares of
The Fund 33
NOTES TO FINANCIAL STATEMENTS (continued)
Beneficial Interest in each of the following classes of shares: Class A, Class B, Class C and Class Z. 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 share redemptions made within six years of purchase and automatically convert to Class A shares after six years.The fund no longer offers Class B shares, except in connection with dividend reinvestment and permitted exchanges of Class B shares. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Class Z shares are sold at net asset value per share generally only to shareholders who received Class Z shares in exchange for their shares of General Municipal Bond Fund, Inc. as a result of the reorganization of such fund. Class Z shares generally are not available for new accounts. 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.
The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
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: Investments in 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
34
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.
The Financial Accounting Standards Board (“FASB”) released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements.The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.
(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 has arrangements with the custodian and cash management banks whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.
(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 gains, if any, are normally declared and paid annually, but the fund may make distributions on a
The Fund 35
NOTES TO FINANCIAL STATEMENTS (continued)
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 U.S. generally accepted accounting principles.
(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.
During the current year, the fund adopted FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority.Tax positions not deemed to meet the more likely-than-not threshold would be recorded as a tax expense in the current year.The adoption of FIN 48 had no impact on the operations of the fund for the period ended April 30, 2008.
Each of the tax years in the three-year period ended April 30, 2008, remains subject to examination by the Internal Revenue Service and state taxing authorities.
At April 30, 2008, the components of accumulated earnings on a tax basis were as follows: undistributed tax-exempt income $369,374, accumulated capital losses $45,721,132 and unrealized appreciation $10,304,969. In addition, the fund had $4,167,985 of capital losses realized after October 31, 2007 which were deferred for tax purposes to the first day of the following fiscal year.
36
The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to April 30, 2008. If not applied, $9,553,959 of the carryover expires in fiscal 2009, $17,083,173 expires in fiscal 2010, $10,384,676 expires in fiscal 2011, $7,789,252 expires in fiscal 2012 and $910,072 expires in fiscal 2016.
The tax character of distributions paid to shareholders during the fiscal periods ended April 30, 2008 and April 30, 2007 were as follows: tax exempt income $26,315,664 and $25,762,687, respectively.
During the period ended April 30, 2008, as a result of permanent book to tax differences, primarily due to the tax treatment for amortization adjustments and capital loss carryover expiration, the fund decreased accumulated undistributed investment income-net by $6,559, increased accumulated net realized gain (loss) on investments by $16,417,367 and decreased paid-in capital by $16,410,808. Net assets and net asset value were not affected by this reclassification.
NOTE 2—Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $350 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 borrowing.
The average daily amount of borrowings outstanding under the Facility during the period ended April 30, 2008 was approximately $39,700, with a related weighted average annualized interest rate of 3.33% .
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 the value of the fund’s average daily net assets and is payable monthly.
The Fund 37
NOTES TO FINANCIAL STATEMENTS (continued)
During the period ended April 30, 2008, the Distributor retained $11,091 and $159 from commissions earned on sales of the fund’s Class A and Class Z shares, respectively, and $27,692 and $1,491 from CDSC on redemptions of the fund’s Class B and Class C shares, respectively.
(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 the value of the average daily net assets of Class B shares and .75% of the value of the average daily net assets of Class C shares. During the period ended April 30, 2008, Class B and Class C shares were charged $49,402 and $84,735, respectively, pursuant to the Plan.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class Z shares pay the Distributor at an annual rate of .25% of the value of the average daily net assets of Class A, Class B and Class C shares and .20% of the value of the average daily net assets of Class Z shares, for the provision of certain services.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended April 30, 2008, Class A, Class B, Class C and Class Z shares were charged $680,237, $24,701, $28,245 and $587,517, respectively, pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended April 30, 2008, the fund was charged $240,734 pursuant to the transfer agency agreement.
The fund compensates The Bank of New York, a subsidiary of BNY Mellon and a Dreyfus affiliate, under a cash management agreement
38
for performing cash management services related to fund subscriptions and redemptions. During the period ended April 30, 2008, the fund was charged $16,562 pursuant to the cash management agreement.
Effective July 1, 2007, the fund’s custodian, The Bank of New York, became an affiliate of the Manager. Under the fund’s pre-existing custody agreement with The Bank of New York, for providing custodial services for the fund for the ten months ended April 30, 2008, the fund was charged $24,897. Prior to becoming an affiliate,The Bank of New York was paid $10,213 for custody services to the fund for the two months ended June 30, 2007.
During the period ended April 30, 2008, the fund was charged $7,968 for services performed by the Chief Compliance Officer.
The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $274,055, Rule 12b-1 distribution plan fees $11,749, shareholder services plan fees $112,920, custodian fees $18,246, chief compliance officer fees $1,880 and transfer agency per account fees $41,570.
(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.
(e) Prior to December 1, 2007, a .10% redemption fee was charged and retained by the fund on certain Class Z shares redeemed within thirty days following the date of issuance, including redemptions made through the use of the fund’s exchange privilege. Effective December
1, 2007, the fund discontinued the redemption fee on shares.The fund reserves the right to reimpose a redemption fee in the future.
NOTE 4—Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding short-term securities,financial futures and options transactions, during the period ended April 30, 2008, amounted to $473,254,904 and $480,132,378, respectively.
The Fund 39
NOTES TO FINANCIAL STATEMENTS (continued)
The fund may participate in secondary inverse floater structures in which fixed-rate, tax-exempt municipal bonds purchased by the fund are transferred to a trust. The trust subsequently issues two or more variable rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds. One or more of these variable rate securities pays interest based on a short-term floating rate set by a remarketing agent at predetermined intervals. A residual interest tax-exempt security is also created by the trust, which is transferred to the fund, and is paid interest based on the remaining cash flow of the trust, after payment of interest on the other securities and various expenses of the trust.
The fund accounts for the transfer of bonds to the trust as secured borrowings, with the securities transferred remaining in the fund’s investments, and the related floating rate certificate securities reflected as fund liabilities under the caption, “Payable for floating rate notes issued” in the Statement of Assets and Liabilities.
At April 30, 2008, the cost of investments for federal income tax purposes was $596,087,556; accordingly, accumulated net unrealized depreciation on investments was $10,304,969, consisting of $23,738,343 gross unrealized appreciation and $13,433,374 gross unrealized depreciation.
In March 2008, the FASB released Statement of Financial Accounting Standards No. 161 “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements.The application of FAS 161 is required for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years.At this time, management is evaluating the implications of FAS 161 and its impact on the financial statements and the accompanying notes has not yet been determined.
40
| REPORT OF INDEPENDENT REGISTERED |
| PUBLIC ACCOUNTING FIRM |
| Shareholders and Board of Trustees |
| Dreyfus Premier Municipal Bond Fund |
We have audited the accompanying statement of assets and liabilities, of Dreyfus Premier Municipal Bond Fund, including the statement of investments, as of April 30, 2008, 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 periods 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 the standards of the Public Company Accounting Oversight Board (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.We were not engaged to perform an audit of the Fund’s internal control over financial reporting.Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting.Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30,2008 by correspondence with the custodian and oth-ers.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 Municipal Bond Fund at April 30, 2008, 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 periods, in conformity with U.S. generally accepted accounting principles.
| New York, New York June 25, 2008 |
The Fund 41
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended April 30, 2008 as “exempt-interest dividends” (not generally subject to regular federal income tax).
As required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any) and capital gains distributions (if any) paid for the 2008 calendar year on Form 1099-DIV and their portion of the fund’s tax-exempt dividends paid for the 2008 calendar year on Form 1099-INT, both of which will be mailed by January 31, 2009.
42
BOARD MEMBERS INFORMATION (Unaudited)
| Joseph S. DiMartino (64) |
| Chairman of the Board (1995) |
| Principal Occupation During Past 5 Years: |
| • Corporate Director and Trustee |
| Other Board Memberships and Affiliations: |
| • The Muscular Dystrophy Association, Director |
| • Century Business Services, Inc., a provider of outsourcing functions for small and medium size |
| companies, Director |
| • The Newark Group, a provider of a national market of paper recovery facilities, paperboard |
| mills and paperboard converting plants, Director |
| • Sunair Services Corporation, a provider of certain outdoor-related services to homes and |
| businesses, Director |
| No. of Portfolios for which Board Member Serves: 163 |
| Clifford L. Alexander, Jr. (74) |
| Board Member (1986) |
| Principal Occupation During Past 5 Years: |
| • President of Alexander & Associates, Inc., a management consulting firm (January 1981-present) |
| • Chairman of the Board of Moody’s Corporation (October 2000-October 2003) |
| Other Board Memberships and Affiliations: |
| • Mutual of America Life Insurance Company, Director |
| No. of Portfolios for which Board Member Serves: 51 |
| David W. Burke (72) |
| Board Member (2007) |
| Principal Occupation During Past 5 Years: |
| • Corporate Director and Trustee |
| Other Board Memberships and Affiliations: |
| • John F. Kennedy Library Foundation, Director |
| No. of Portfolios for which Board Member Serves: 85 |
| Peggy C. Davis (65) |
| Board Member (1990) |
| Principal Occupation During Past 5 Years: |
| • Shad Professor of Law, New York University School of Law (1983-present) |
| • Writer and teacher in the fields of evidence, constitutional theory, family law, social sciences |
| and the law, legal process and professional methodology and training |
| No. of Portfolios for which Board Member Serves: 64 |
The Fund 43
BOARD MEMBERS INFORMATION (Unaudited) (continued)
| Diane Dunst (68) |
| Board Member (2007) |
| Principal Occupation During Past 5 Years: |
| • President, Huntting House Antiques |
| No. of Portfolios for which Board Member Serves: 23 |
| Ernest Kafka (75) |
| Board Member (1986) |
| Principal Occupation During Past 5 Years: |
| • Physician engaged in private practice specializing in the psychoanalysis of adults and |
| adolescents (1962-present) |
| • Instructor,The New York Psychoanalytic Institute (1981-present) |
| No. of Portfolios for which Board Member Serves: 23 |
| Nathan Leventhal (65) |
| Board Member (1989) |
| Principal Occupation During Past 5 Years: |
| • Commissioner, NYC Planning Commission (March 2007-present) |
| • Chairman of the Avery-Fisher Artist Program (November 1997-present) |
| Other Board Memberships and Affiliations: |
| • Movado Group, Inc., Director |
| • Mayor’s Committee on Appointments, Chairman |
| No. of Portfolios for which Board Member Serves: 23 |
| Jay I. Meltzer (79) |
| Board Member (2007) |
| Principal Occupation During Past 5 Years: |
| • Physician, Internist and Specialist in Clinical Hypertension |
| • Clinical Professor of Medicine at Columbia University & College of Physicians and Surgeons |
| • Faculty Associate, Center for Bioethics, Columbia |
| No. of Portfolios for which Board Member Serves: 23 |
44
| Daniel Rose (78) |
| Board Member (2007) |
| Principal Occupation During Past 5 Years: |
| • Chairman and Chief Executive Officer of Rose Associates, Inc., a New York based real estate |
| development and management firm |
| Other Board Memberships and Affiliations: |
| • Baltic-American Enterprise Fund,Vice Chairman and Director |
| • Harlem Educational Activities Fund, Inc., Chairman |
| • Housing Committee of the Real Estate Board of New York, Inc., Director |
| No. of Portfolios for which Board Member Serves: 32 |
| Warren B. Rudman (77) |
| Board Member (2007) |
| Principal Occupation During Past 5 Years: |
| • Stonebridge International LLC, Co-Chairman |
| • Of Counsel to (from January 1993 to December 31, 2003, Partner in) the law firm Paul, |
| Weiss, Rifkind,Wharton & Garrison LLP |
| Other Board Memberships and Affiliations: |
| • Boston Scientific, Director |
| • D.B. Zwirn & Co.,Vice Chairman of the International Advisory Board |
| No. of Portfolios for which Board Member Serves: 33 |
Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.
Saul B. Klaman, Emeritus Board Member Sander Vanocur, Emeritus Board Member
The Fund 45
OFFICERS OF THE FUND (Unaudited)
J. DAVID OFFICER, President since December 2006.
Chief Operating Officer,Vice Chairman and a Director of the Manager, and an officer of 78 investment companies (comprised of 163 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since April 1998.
PHILLIP N. MAISANO, Executive Vice President since July 2007.
Chief Investment Officer,Vice Chair and a director of the Manager, and an officer of 78 investment companies (comprised of 163 portfolios) managed by the Manager. Mr. Maisano also is an officer and/or Board member of certain other investment management subsidiaries of The Bank of New York Mellon Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since November 2006. Prior to joining the Manager, Mr. Maisano served as Chairman and Chief Executive Officer of EACM Advisors, an affiliate of the Manager, since August 2004, and served as Chief Executive Officer of Evaluation Associates, a leading institutional investment consulting firm, from 1988 until 2004.
MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since October 1991.
JAMES BITETTO, Vice President and Assistant Secretary since August 2005.
Associate General Counsel and Secretary of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since December 1996.
JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. She is 52 years old and has been an employee of the Manager since October 1988.
JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 46 years old and has been an employee of the Manager since June 2000.
JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. She is 45 years old and has been an employee of the Manager since February 1984.
JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since February 1991.
ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 56 years old and has been an employee of the Manager since May 1986.
46
JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since October 1990.
JAMES WINDELS, Treasurer since November 2001.
Director – Mutual Fund Accounting of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since April 1985.
RICHARD CASSARO, Assistant Treasurer since September 2007.
Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since September 1982.
GAVIN C. REILLY, Assistant Treasurer since December 2005.
Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since April 1991.
ROBERT ROBOL, Assistant Treasurer since August 2005.
Senior Accounting Manager – Fixed Income Funds of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since October 1988.
ROBERT SALVIOLO, Assistant Treasurer since May 2007.
Senior Accounting Manager – Equity Funds of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since June 1989.
ROBERT SVAGNA, Assistant Treasurer since August 2005.
Senior Accounting Manager – Equity Funds of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since November 1990.
JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.
Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (79 investment companies, comprised of 180 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 50 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.
WILLIAM GERMENIS, Anti-Money Laundering Compliance Officer since October 2002.
Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 75 investment companies (comprised of 176 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Distributor since October 1998.
The Fund 47
NOTES
| Item 2. | Code of Ethics. |
The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.
| Item 3. | Audit Committee Financial Expert. |
The Registrant's Board has determined that Joseph S. DiMartino, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Mr. DiMartino is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.
| Item 4. | Principal Accountant Fees and Services |
(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $37,319 in 2007 and $38,437 in 2008.
(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $ 0 in 2007 and $0 in 2008.
The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $ 0 in 2007 and $0 in 2008.
Note: For the second paragraph in each of (b) through (d) of this Item 4, certain of such services were not pre-approved prior to May 6, 2003, when such services were required to be pre-approved. On and after May 6, 2003, 100% of all services provided by the Auditor were pre-approved as required. For comparative purposes, the fees shown assume that all such services were pre-approved, including services that were not pre-approved prior to the compliance date of the pre-approval requirement.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $3,038 in 2007 and $2,709 in 2008. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.
The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $0 in 2007 and $0 in 2008.
(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $658 in 2007 and $236 in 2008. These services consisted of a review of the Registrant's anti-money laundering program.
The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee were $0 in 2007 and $0 in 2008.
Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.
Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $946,380 in 2007 and $2,465,481 in 2008.
Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates which were not pre-approved (not requiring pre-approval) is compatible with maintaining the Auditor's independence.
| Item 5. | Audit Committee of Listed Registrants. | |
| Not applicable. [CLOSED-END FUNDS ONLY] | ||
| Item 6. | Investments. | |
| Not applicable. | ||
| Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management | |
| Investment Companies. | ||
| Not applicable. [CLOSED-END FUNDS ONLY] | ||
| Item 8. | Portfolio Managers of Closed-End Management Investment Companies. | |
| Not applicable. [CLOSED-END FUNDS ONLY, beginning with reports for periods ended | ||
| on and after December 31, 2005] | ||
| Item 9. | Purchases of Equity Securities by Closed-End Management Investment Companies and | |
| Affiliated Purchasers. |
| Not applicable. [CLOSED-END FUNDS ONLY] | ||
| Item 10. | Submission of Matters to a Vote of Security Holders. |
The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders.
Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.
| Item 11. | Controls and Procedures. |
(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12.
| Exhibits. |
| (a)(1) | Code of ethics referred to in Item 2. | |
| (a)(2) | Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) | |
| under the Investment Company Act of 1940. | ||
| (a)(3) | Not applicable. | |
| (b) | Certification of principal executive and principal financial officers as required by Rule 30a-2(b) | |
| under the Investment Company Act of 1940. | ||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Dreyfus Premier Municipal Bond Fund | ||
| By: | /s/ J. David Officer | |
| J. David Officer | ||
| President | ||
| Date: | June 18, 2008 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By: | /s/ J. David Officer | |
| J. David Officer | ||
| President | ||
| Date: | June 18, 2008 | |
| By: | /s/ James Windels | |
| James Windels | ||
| Treasurer | ||
| Date: | June 18, 2008 | |
EXHIBIT INDEX
| (a)(1) | Code of ethics referred to in Item 2. | |
| (a)(2) | Certifications of principal executive and principal financial officers as required by Rule 30a- | |
| 2(a) under the Investment Company Act of 1940. (EX-99.CERT) | ||
| (b) | Certification of principal executive and principal financial officers as required by Rule 30a- | |
| 2(b) under the Investment Company Act of 1940. (EX-99.906CERT) | ||