Fund Description

The fund was incepted in July 1983 and is managed by Dreyfus Corporation. The fund's main objective is to seek high a level of current income exempt from federal, New York state and New York city income taxes as is consistent with the preservation of capital. To pursue these goals, the fund normally invests substantially all of its assets in municipal bonds that provide income exempt from federal, New York state and New York city personal income taxes. The fund manager believes that when acceptable New York municipal obligations are unavailable for investment, the fund may invest temporarily in municipal obligations that pay income subject to New York state and New York city income taxes, but not federal income tax. The dollar-weighted average maturity of the fund's portfolio normally exceeds ten years, but the fund may invest without regard to maturity. The fund will invest at least 80% of its assets in investment grade municipal bonds or the unrated equivalent as determined by Dreyfus. The fund may invest up to 20% of its assets in high yield municipal bonds. Dividends, if any, are distributed monthly. Capital gains, if any, are distributed annually.