PREMIER STATE MUNICIPAL BOND FUND
N-30D, 1994-06-28
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PRESIDENT'S LETTER

Dear Shareholder:
    Since our last report to shareholders as of October 31, 1993, the bond
markets have been in a state of flux. Bond prices rallied to a cyclical high
last October and have moved irregularly lower ever since. Today, long-term
municipal bonds are generally returning 1% more than they were only six
months ago. This is reflected in a decline in the Fund's net asset value.
    During the 12-month period ended April 30, 1994, Class A shares of
Premier State Municipal Bond Fund, Michigan Series paid income dividends of
approximately $.89 per share. This translates to a tax exempt distribution
rate per share of 5.55%, based on the closing maximum offering price per
share on April 30, 1994, adjusted for capital gain distributions.*
    For the same period, Class B shares paid income dividends of
approximately $.80 per share, which translated to a tax exempt distribution
rate per share of 5.19%, based on the closing net asset value per share on
April 30, 1994, adjusted for capital gain distributions.*
    Soon after his inauguration, President Clinton quickly moved to outline
his domestic economic agenda, which called for higher taxes and a substantial
reduction in the Federal budget deficit. In return it was expected that the
Federal Reserve Board would continue to maintain a stimulative policy.
Congress approved a budget package in early August that tilted fiscal policy
toward deficit reduction; in response, interest rates accelerated downward
during the Summer, before finally reaching their low point during the fourth
quarter of last year.
    During the first half of its fiscal year, the Series' total return
benefited from the strong performance of the municipal market. Declining
interest rates, an accommodative Federal Reserve Board policy, low price
volatility, and a lackluster economy drove the municipal market to higher
price valuations. However, as the economy began to pick up steam during the
fourth quarter of 1993 and into the new year, a change in Federal Reserve
policy and rising interest rates had a negative impact on the municipal
market.
    It appears that 1994 probably will be memorialized as the end of five
years of accommodative Federal Reserve policy. Since February, the Federal
Funds rate has been raised four times. Generally, it is anticipated that
further rate hikes will be forthcoming should the economy continue to signal
an unacceptable rate of growth. With such a heightened degree of nervousness
influencing both bonds and stocks, the markets could remain quite volatile.
    Higher interest rates have had an effect on the supply of new municipal
bonds. While 1993 was a record year for bond issuance, new issuance has
fallen dramatically this year. At the same time, the appetites of individual
investors for tax exempt investments have been tempered. However, should
inflation fears subside and interest rates stabilize, attractive investment
opportunities could exist in municipal securities. New issuance has been
reduced, the highest Federal marginal tax rate has been increased and
municipal bonds are yielding substantially more than they were only a few
months ago. However, at this juncture it is still uncertain if and when such
a scenario will unfold.
    Last year, when rates were reaching their cyclical lows, we altered our
security selection strategy. Specifically, we elected not to "chase the
market," and began to conduct our business somewhat more defensively. While
these actions limited performance during that period in 1993 when rates were
still declining, they positioned the Fund more advantageously for the market
decline which has occurred so far this year.


    As we stated in our previous report to shareholders, it was our intention
to adopt a more defensive portfolio posture in order to reduce the volatility
of the portfolio. In response, we reduced the Series' exposure to those bonds
in the portfolio with the longest durations (price sensitivities) while
maintaining the more defensive securities (i.e., pre-refunded bonds), and
started building higher cash reserves. We still believe that a more defensive
stance currently is warranted in view of the heightened degree of uncertainty
about the near-term direction of the economy and inflation. Certainly, recent
moves by the Federal Reserve to hike short-term interest rates provide enough
of an impetus to maintain a cautious stance. The Federal Reserve generally
acts in a series of moves rather than taking a "one shot approach."
    While we increased our cash reserves, which are invested in tax exempt
cash equivalent securities, to lessen the impact of rising rates on the
Series, we are reluctant to keep too much cash on hand. Because of the
restrictive investment choices in a State-specific portfolio, we are holding
less cash reserves than we might maintain in a national fund. As mentioned
previously, higher interest rates have severely curtailed the volume of new
municipal securities so we have some concern about the potential periodic
shortage of tax exempts if the financial markets stabilize and investors
increase their level of purchases. Higher tax rates and the large number of
bonds being retired lead us to believe that the potential demand for tax
exempt securities is substantial, especially in those States with the highest
tax structures.
    As we have witnessed in recent weeks, negative influences on the markets
can be quite powerful. The potential still exists for further market
volatility and higher yields before bond prices begin to rise again. At
difficult times such as these, it can be easy to "lose sight of the forest
for the trees," as emotion often substitutes for logical investment
reasoning. Your Series is managed with the intention of achieving long-term
performance and income goals.
    We appreciate your investment in the Series, and we want to assure you
that we are, at all times, working in the Series' best interest.
                              Very truly yours,


                             (Richard J. Moynihan signature Logo)

                              Richard J. Moynihan
                              President
May 16, 1994
New York, N.Y.
*Some income may be subject to the Federal Alternative Minimum Tax for
certain investors.

4

PERFORMANCE

4

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN Premier STATE
Municipal Bond Fund,
MICHIGAN SERIES Class A Shares AND THE lehman brothers municipal bond index
4
                    [Exhibit A]
$18,362
Premier State Municipal
Bond Fund,
Michigan Series
(Class A Shares)
4

$17,932
Lehman Brothers
Municipal Bond Index*
4

In Dollars
4

*Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
                              CLASS A                                                          CLASS B
- ---------------------------------------------------------------     ---------------------------------------------------------
                                                                                                           % Return Reflecting
                                                 % Return                                                  Applicable Contingent
                                                 Reflecting                                  % Return         Deferred Sales
                         % Return Without     Maximum Initial                               Assuming No        Charge Upon
PERIODS ENDED 4/30/94    SALES CHARGE        SALES CHARGE (4.5%)    PERIODS ENDED 4/30/94    REDEMPTION         REDEMPTION*
- ---------------------    ----------------    -------------------    ---------------------   -----------    --------------------
<S>                            <C>              <C>                 <C>                         <C>                <C>
1 Year                         3.65%            (1.03)%             1 Year                      3.11%              0.18%
5 Year                         8.78              7.79                From Inception (1/15/93)   5.96               3.66
From Inception (5/28/87)       9.90              9.17
</TABLE>

Past performance is not predictive of future performance. Share price and
investment return fluctuate and share price may be more or less than original
cost upon redemption.
The above graph compares a $10,000 investment made in Class A shares of
Premier State Municipal Bond Fund, Michigan Series on 5/28/87 (Inception
Date) to a $10,000 investment made in the Lehman Brothers Municipal Bond
Index on that date. For comparative purposes the value of the Index on
5/31/87 is used as the beginning value on 5/28/87. All dividends and capital
gain distributions are reinvested. Performance for Class B shares will differ
from the results shown above due to difference in charges and expenses
charged to that class.
The Series invests primarily in Michigan municipal securities and its
performance shown in the graph takes into account the maximum initial sales
charge on Class A shares and all other applicable fees and expenses. Unlike
the Series, the Lehman Brothers Municipal Bond Index 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 market. The Index does not take into account charges,
fees and other expenses. Further information relating to Series performance,
including expense reimbursements, if applicable, is contained in the
Condensed Financial Information section of the Prospectus and elsewhere in
this report.
*Maximum contingent deferred sales charge for Class B shares is 3% and is
reduced to 0% after five years.
1


<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
STATEMENT OF INVESTMENTS                                                                      APRIL 30, 1994

                                                                                          PRINCIPAL
MUNICIPAL BONDS--98.1%                                                                      AMOUNT           VALUE
                                                                                        --------------  -------------
<S>                                                                                       <C>            <C>
MICHIGAN--96.2%
Capital Region Airport Authority, Airport Revenue
    6.70%, 7/1/2021 (Insured; MBIA).........................................              $  2,500,000   $  2,570,175
Chippewa Valley Schools 7%, 5/1/2010........................................                 1,275,000      1,416,869
Detroit:
    (Development Area No. 1) 7.60%, 7/1/2010................................                 4,150,000      4,428,133
    Sewer Disposal System Revenue:
      7.125%, 7/1/2019 .....................................................                 2,735,000      3,016,814
      Refunding:
          7%, 7/1/2011......................................................                 1,325,000      1,384,214
          8.33%, 7/1/2023 (Insured; FGIC) (a)...............................                 5,000,000      4,250,000
    (Unlimited Tax) 6.35%, 4/1/2014.........................................                 3,500,000      3,311,000
    Water Supply Systems Revenue, Refunding:
      9.677%, 7/1/2002 (Insured; FGIC) (a)..................................                 3,500,000      4,055,625
      9.677%, 7/1/2022 (Insured; FGIC) (a)..................................                 1,500,000      1,513,125
Detroit School District (School Building and Site)
    (Wayne County) 6.25%, 5/1/2012..........................................                 4,250,000      4,231,810
Dickinson County Economic Development Corp., Solid Waste Disposal Refunding,
    Revenue (Champion International Corp. Project) 6.55%, 3/1/2007..........                 4,000,000      3,972,560
East Lansing Building Authority, Refunding 6.90%, 10/1/2011.................                 1,375,000      1,438,401
East Lansing School District
    (Ingham and Clinton Counties School Building and Site) 6.625%, 5/1/2014.                 1,000,000      1,033,160
Fitzgerald Public School District (School Building and Site) 6.375%, 5/1/2016                1,150,000      1,236,457
Flint Michigan Refunding Tax Increment Finance Authority 5.75%, 6/1/2002....                 3,000,000      3,039,240
Grand Rapids Housing Finance Authority, Multi-Family Revenue, Refunding
    7.625%, 9/1/2023 (Collateralized; FNMA).................................                 1,000,000      1,071,870
Grand Rapids Sanitary Sewer Systems, Improvement Revenue, Refunding 7%, 1/1/2016               500,000        532,540
Grand Traverse County Hospital Finance Authority, HR (Munson Medical Center)
    7.625%, 12/1/2015.......................................................                   750,000        821,348
Greater Detroit Resource Recovery Authority, Revenue 9.25%, 12/13/2008......                 1,250,000      1,335,825
Holland School District (Unified School Building and Site) 7.375%, 5/1/2019.                 2,000,000      2,195,980
Kent Hospital Finance Authority, Hospital Facility Revenue
    (Butterworth Hospital) 7.25%, 1/15/2012.................................                 1,000,000      1,113,930
Lapeer Economic Development Corp., Ltd. Obligation Revenue
    (Lapeer Health Services Project) 8.625%, 2/1/2020.......................                 2,000,000      2,366,460
Michigan Building Authority, Revenue:
    6.75%, 10/1/2007 (Insured; AMBAC).......................................                 1,600,000      1,706,656
    6.75%, 10/1/2011........................................................                 2,000,000      2,087,620
Michigan Higher Education Student Loan Authority, Student Loan Revenue:
    6.875%, 10/1/2007 (Insured; AMBAC)......................................                 2,250,000      2,407,680
    7.55%, 10/1/2008 (Insured; MBIA)........................................                 1,625,000      1,786,119
    Refunding 6%, 9/1/2008..................................................                 2,000,000      1,962,160

PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
STATEMENT OF INVESTMENTS (CONTINUED)                                                              APRIL 30, 1994

                                                                                          PRINCIPAL
MUNICIPAL BONDS (CONTINUED)                                                                 AMOUNT           VALUE
                                                                                        -------------- --------------
MICHIGAN (CONTINUED)
Michigan Hospital Finance Authority, HR:
    (Crittenton Hospital) 6.70%, 3/1/2007...................................              $  2,250,000   $  2,370,780
    (Daughters of Charity National Health Systems-Providence Hospital) 7%, 11/1/2021         2,700,000      2,875,311
    (Henry Ford Continuing Care) 6.75%, 7/1/2011............................                 1,665,000      1,721,077
    (McLaren Obligation Group) 7.50%, 9/15/2021.............................                 1,250,000      1,435,487
    (Mercy Mount Clemens Corp.) 6.25%, 5/15/2011............................                 2,000,000      1,942,840
    Refunding:
      (Detroit Medical Center):
          8.125%, Series A, 8/15/1998.......................................                   810,000        921,772
          8.125%, Series B, 8/15/1998.......................................                   980,000      1,113,192
          8.125%, 8/15/2012.................................................                   220,000        241,817
      (Detroit Medical Center Obligation Group) 6.50%, 8/15/2018............                 5,000,000      4,886,050
      (Middle Michigan Obligation Group) 6.625%, 6/1/2010...................                 2,000,000      2,014,240
      (Pontiac Osteopathic Hospital) 6%, 2/1/2014...........................                 5,250,000      4,669,403
    (Sisters of Mercy Health Corp.) 7.50%, 2/15/2018........................                 2,250,000      2,557,868
Michigan Housing Development Authority:
    (Home Improvement Program) 7.65%, 12/1/2012.............................                 2,150,000      2,174,360
    Ltd. Obligation Revenue:
      (Fraser Woods Project) 6.50%, 9/15/2007 (Insured; FSA)................                 1,810,000      1,842,851
      (Green Hill Project) 5.45%, 7/15/2011.................................                 1,835,000      1,657,262
      (Walled Lake Villa Project) 6%, 4/15/2018 (Insured; FSA)..............                 1,500,000      1,414,665
    MFHR 8.375%, 7/1/2019 (Insured; FGIC)...................................                 1,550,000      1,661,957
    Rental Housing Revenue:
      6.50%, 4/1/2006.......................................................                 2,000,000      2,048,400
      7.70%, 4/1/2023 (Insured; FSA)........................................                 4,185,000      4,368,805
    SFMR:
      7.55%, 12/1/2014......................................................                   575,000        590,439
      7.50%, 6/1/2015.......................................................                 2,355,000      2,438,885
      8%, 6/1/2018..........................................................                   290,000        300,188
      7.75%, 12/1/2019......................................................                 2,480,000      2,597,155
      6.95%, 12/1/2020......................................................                 1,750,000      1,794,240
Michigan Job Development Authority, PCR:
    (Chrysler Corp. Project) 5.70%, 11/1/1999...............................                 5,000,000      5,042,550
    (General Motors Corp.) 5.55%, 4/1/2009..................................                 4,000,000      3,708,080
Michigan Municipal Bond Authority,
    Local Government Loan Program Revenue Refunding, 6.50%, 5/1/2016........                 4,000,000      4,107,120
Michigan State University Board of Trustees, General Revenue 6.125%, 8/15/2010               2,705,000      2,713,899
Michigan Strategic Fund:
    Ltd. Obligation Revenue:
      (Consumers Power Co. Project) 5.80%, 6/15/2010
          (Insured; Capital Market Insurance Corp.).........................                 4,000,000      3,921,760
      (Northeastern Community Mental Health Foundation) 8.25%, 1/1/2009.....                 1,610,000      1,686,684
      Refunding:
          (Detroit Edison Co. Pollution Control Project)
            6.95%, 9/1/2021 (Insured; FGIC).................................                 3,500,000      3,684,485

PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
STATEMENT OF INVESTMENTS (CONTINUED)                                                              APRIL 30, 1994

                                                                                          PRINCIPAL
MUNICIPAL BONDS (CONTINUED)                                                                 AMOUNT           VALUE
                                                                                        -------------- --------------
MICHIGAN (CONTINUED)
Michigan Strategic Fund (continued):
    Ltd. Obligation Revenue (continued):
      Refunding (continued):
          (Ledyard Association Ltd. Partnership Project)
            6.25%, 10/1/2011 (Insured; ITT Lyndon Property Insurance Co.)...              $  3,075,000   $  3,037,731
      (WMX Technologies Inc. Project) 6%, 11/1/2013.........................                 6,000,000      5,552,520
    Solid Waste Disposal Revenue, Refunding
      (Genesee Power Station Project) 7.50%, 1/1/2021.......................                 3,000,000      2,933,130
Michigan Trunk Line 7%, 8/15/2017...........................................                 3,945,000      4,349,086
Monroe County:
    PCR (Detroit Edison Project):
      7.50%, 12/1/2019 (Insured; AMBAC).....................................                 4,650,000      5,154,432
      7.875%, 12/1/2019.....................................................                 2,720,000      2,976,034
      7.65%, 9/1/2020 (Insured; FGIC).......................................                 2,250,000      2,496,690
    Water Supply Systems (Frenchtown Charter Township Water Treatment
      and Distribution Systems) 6.50%, 5/1/2013.............................                 2,500,000      2,475,200
Monroe County Economic Development Corp., Ltd. Obligation Refunding, Revenue
    (Detroit Edison Co. Project) 6.95%, 9/1/2022 (Insured; FGIC)............                 2,000,000      2,216,060
Northville, Special Assessment (Wayne County) 7.875%, 1/1/2006..............                 1,685,000      1,818,486
Northwestern Michigan College, Community College Improvement Revenue,
Refunding
    7%, 7/1/2011............................................................                 1,800,000      1,873,818
Oakland County Economic Development Corp., Ltd. Obligation Revenue
    (Pontiac Osteopathic Hospital Project) 9.625%, 1/1/2020.................                 1,765,000      2,168,585
Okemos Public School District (Ingham County School Building and Site)
    6.90%, 5/1/2011.........................................................                 4,000,000      4,413,520
Regents of University of Michigan, HR 6.375%, 12/1/2024.....................                 2,500,000      2,474,900
Rockford Public Schools, Refunding (Kent County School Building and Site)
    7.375%, 5/1/2019........................................................                 2,000,000      2,237,400
Romulus Economic Development Corp., Ltd. Obligation EDR
    Refunding (Romulus Hir Ltd. Partnership Project)
    7%, 11/1/2015 (Insured; ITT Lyndon Property Insurance Co.)..............                 3,700,000      3,801,676
Royal Oak Hospital Finance Authority, HR (William Beaumont Hospital)
    7.375%, 1/1/2020........................................................                 2,650,000      2,952,789
Wayne Charter County, Airport Revenue (Detroit Metropolitan Wayne County
Airport)
    6.75%, 12/1/2021 (Insured; MBIA)........................................                 1,600,000      1,648,784
U.S. RELATED--1.9%
Puerto Rico Housing Finance Corp., MFMR
    7.50%, 4/1/2022 (LOC; Government Development Bank) (b)..................                 2,990,000      3,120,812
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport
Project)
    8.10%, 10/1/2005........................................................                   500,000         551,735
                                                                                                       --------------
TOTAL MUNICIPAL BONDS
    (cost $185,763,790).....................................................                              $193,042,781
                                                                                                        ==============

PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
STATEMENT OF INVESTMENTS (CONTINUED)                                                              APRIL 30, 1994

                                                                                          PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS--1.9%                                                      AMOUNT           VALUE
                                                                                        -------------- --------------
MICHIGAN:
Michigan Strategic Fund, PCR, VRDN (Consumers Power Project)
    3.05% (LOC; Union Bank of Switzerland)(b,c).............................              $  2,800,000   $  2,800,000
Monroe County Economic Development Corp., Ltd. Obligation Refunding, Revenue,
    VRDN (Detroit Edison Co. Project) 3% (LOC; Barclays Bank)(b,c)..........                 1,000,000      1,000,000
                                                                                                       --------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
    (cost $3,800,000).......................................................                             $  3,800,000
                                                                                                       ==============
TOTAL INVESTMENTS--100.0%
    (cost $189,563,790).....................................................                             $196,842,781
                                                                                                       ==============
</TABLE>
<TABLE>
SUMMARY OF ABBREVIATIONS
<S>           <C>                                                <C>     <C>
AMBAC         American Municipal Bond Assurance Corporation      MBIA    Municipal Bond Insurance Association
EDR           Economic Development Revenue                       MFHR    Multi-Family Housing Revenue
FGIC          Financial Guaranty Insurance Corporation           MFMR    Multi-Family Mortgage Revenue
FNMA          Federal National Mortgage Association              PCR     Pollution Control Revenue
FSA           Financial Security Assurance                       SFMR    Single Family Mortgage Revenue
HR            Hospital Revenue                                   VRDN    Variable Rate Demand Notes
LOC           Letter of Credit
</TABLE>
<TABLE>

SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D)              OR          MOODY'S             OR         STANDARD & POOR'S          PERCENTAGE OF VALUE
- ---------                          ---------                      --------------------    -----------------------
<S>                                <C>                            <C>                               <C>
AAA                                Aaa                            AAA                               28.3%
AA                                 Aa                             AA                                27.6
A                                  A                              A                                 18.3
BBB                                Baa                            BBB                               14.1
F1                                 MIG1                           SP1                                1.9
Not Rated                          Not Rated                      Not Rated                          9.8
                                                                                                   --------
                                                                                                   100.0%
                                                                                                   =======
</TABLE>
    NOTES TO STATEMENT OF INVESTMENTS:
    (a)  Residual interest security - the interest rate is subject to change
    periodically.
    (b)  Secured by letters of credit.
    (c)  Securities payable on demand. The interest rate, which is subject to
    change, is based upon bank prime rates or an index of market interest
    rates.
    (d)  Fitch currently provides creditworthiness information for a limited
    amount of investments.







                              See notes to financial statements.
<TABLE>
PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
STATEMENT OF ASSETS AND LIABILITIES                                                                      APRIL 30, 1994
<S>                                                                                           <C>         <C>
ASSETS:
    Investments in securities, at value
      (cost $189,563,790)-see statement.....................................                              $196,842,781
    Cash....................................................................                                   659,600
    Interest receivable.....................................................                                 3,796,483
    Receivable for shares of Beneficial Interest subscribed.................                                   269,595
    Prepaid expenses........................................................                                    25,886
                                                                                                        --------------
                                                                                                           201,594,345
LIABILITIES:
    Due to The Dreyfus Corporation..........................................                  $129,455
    Payable for shares of Beneficial Interest redeemed......................                   163,092
    Accrued expenses........................................................                    35,746         328,293
                                                                                            ----------   -------------
NET ASSETS  ................................................................                              $201,266,052
                                                                                                         =============
REPRESENTED BY:
    Paid-in capital.........................................................                              $192,095,631
    Accumulated undistributed net realized gain on investments..............                                 1,891,430
    Accumulated net unrealized appreciation on investments-Note 3...........                                 7,278,991
                                                                                                        --------------
NET ASSETS at value.........................................................                              $201,266,052
                                                                                                         =============
Shares of Beneficial Interest outstanding:
    Class A Shares
      (unlimited number of $.001 par value shares authorized)...............                               12,274,956
                                                                                                         =============
    Class B Shares
      (unlimited number of $.001 par value shares authorized)...............                                   907,828
                                                                                                         =============
NET ASSET VALUE per share:
    Class A Shares
      ($187,404,902 / 12,274,956 shares)....................................                                    $15.27
                                                                                                               =======
    Class B Shares
      ($13,861,150 / 907,828 shares)........................................                                    $15.27
                                                                                                               =======

PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
STATEMENT OF OPERATIONS                                                                    YEAR ENDED APRIL 30, 1994
INVESTMENT INCOME:
    INTEREST INCOME.........................................................                               $13,031,834
    EXPENSES:
      Management fee--Note 2(a).............................................                $1,124,896
      Shareholder servicing costs-Note 2(c).................................                   646,807
      Distribution fees (Class B shares)-Note 2(b)..........................                    47,921
      Professional fees.....................................................                    34,779
      Prospectus and shareholders' reports..................................                    33,417
      Custodian fees........................................................                    21,617
      Registration fees.....................................................                     7,500
      Trustees' fees and expenses-Note 2(d).................................                     1,763
      Miscellaneous.........................................................                    19,109
                                                                                          ------------
                                                                                             1,937,809
      Less-reduction in management fee due to
          undertakings-Note 2(a)............................................                   219,841
                                                                                          ------------
            TOTAL EXPENSES..................................................                                 1,717,968
                                                                                                          -------------
            INVESTMENT INCOME--NET..........................................                                11,313,866
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
    Net realized gain on investments--Note 3................................                $2,315,880
    Net unrealized (depreciation) on investments............................                (6,895,275)
                                                                                          ------------
            NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS...............                                (4,579,395)
                                                                                                          -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................                              $  6,734,471
                                                                                                          ============




</TABLE>









                                      See notes to financial statements.
<TABLE>
PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
STATEMENT OF CHANGES IN NET ASSETS
                                                                                            YEAR ENDED APRIL 30,
                                                                                        -----------------------------
                                                                                             1993             1994
                                                                                        --------------   ------------
<S>                                                                                       <C>            <C>
OPERATIONS:
    Investment income--net..................................................              $  9,949,247   $ 11,313,866
    Net realized gain on investments........................................                 1,302,815      2,315,880
    Net unrealized appreciation (depreciation) on investments for the year..                 9,138,903     (6,895,275)
                                                                                        --------------   ------------
          NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..............                20,390,965      6,734,471
                                                                                        --------------   ------------
DIVIDENDS TO SHAREHOLDERS FROM:
    Investment income--net:
      Class A shares........................................................                (9,928,078)   (10,845,933)
      Class B shares........................................................                   (21,169)      (467,933)
    Net realized gain on investments:
      Class A shares........................................................                (1,407,206)      (956,415)
      Class B shares........................................................                 -                (54,414)
                                                                                        --------------   ------------
          TOTAL DIVIDENDS...................................................               (11,356,453)   (12,324,695)
                                                                                        --------------   ------------
BENEFICIAL INTEREST TRANSACTIONS:
    Net proceeds from shares sold:
      Class A shares........................................................                40,524,594     24,628,252
      Class B shares........................................................                 3,563,317     11,297,694
    Dividends reinvested:
      Class A shares........................................................                 6,122,861      6,427,971
      Class B shares........................................................                    13,575        347,542
    Cost of shares redeemed:
      Class A shares........................................................               (16,698,726)   (22,803,586)
      Class B shares........................................................                       (84)      (760,491)
                                                                                        --------------   ------------
          INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS......                33,525,537     19,137,382
                                                                                        --------------   ------------
            TOTAL INCREASE IN NET ASSETS....................................                42,560,049     13,547,158
NET ASSETS:
    Beginning of year.......................................................               145,158,845    187,718,894
                                                                                        --------------   ------------
    End of year.............................................................              $187,718,894   $201,266,052
                                                                                          ============   ============
</TABLE>
<TABLE>


                                                                                   SHARES

                                                         ---------------------------------------------------------------
                                                                   CLASS A                          CLASS B
                                                          --------------------------------   --------------------------
                                                             YEAR ENDED APRIL 30,             YEAR ENDED APRIL 30,
                                                       --------------------------------     ---------------------------
                                                            1993             1994           1993*             1994
                                                       --------------    --------------    --------------   -----------
<S>                                                         <C>             <C>                <C>             <C>
CAPITAL SHARE TRANSACTIONS:
    Shares sold............................                 2,650,957       1,535,330          228,063         706,062
    Shares issued for dividends reinvested.                   400,476         401,916              869          21,767
    Shares redeemed........................                (1,093,531)     (1,430,077)              (5)        (48,928)
                                                       --------------      --------------    -----------   -----------
          NET INCREASE IN SHARES OUTSTANDING                1,957,902         507,169          228,927         678,901
                                                       ==============       =============    ==========     ==========
</TABLE>
- -------------------------
* From January 15, 1993 (commencement of initial offering) to April 30, 1993.



See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
FINANCIAL HIGHLIGHTS
    Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from information provided in the Series'
financial statements.
<TABLE>
                                                                    CLASS A SHARES                            CLASS B SHARES
                                                     -----------------------------------------------------   -------------------
                                                                 YEAR ENDED APRIL 30,                        YEAR ENDED APRIL 30,
                                                     -----------------------------------------------------   -------------------
PER SHARE DATA:                                        1990       1991        1992        1993        1994     1993(1)     1994
                                                     ------      ------      ------      ------      ------    ------     ------
<S>                                                  <C>         <C>         <C>         <C>         <C>       <C>        <C>
    Net asset value, beginning of year....           $14.10      $13.80      $14.34      $14.80      $15.65    $15.20     $15.64
                                                     ------      ------      ------      ------      ------    ------     ------
    INVESTMENT OPERATIONS:
    Investment income--net................             1.05        1.01         .95         .92         .89       .24        .80
    Net realized and unrealized gain (loss)
      on investments......................             (.27)        .54         .46         .98        (.30)      .44       (.29)
                                                     ------      ------      ------      ------      ------    ------     ------
          TOTAL FROM INVESTMENT OPERATIONS              .78        1.55        1.41        1.90         .59       .68        .51
                                                     ------      ------      ------      ------      ------    ------     ------
    DISTRIBUTIONS:
    Dividends from investment income--net.            (1.05)      (1.01)       (.95)       (.92)       (.89)     (.24)      (.80)
    Dividends from net realized gain
      on investments .....................             (.03)        -           -          (.13)       (.08)      -         (.08)
                                                     ------      ------      ------      ------      ------    ------     ------
          TOTAL DISTRIBUTIONS.............            (1.08)      (1.01)       (.95)      (1.05)       (.97)     (.24)      (.88)
                                                     ------      ------      ------      ------      ------    ------     ------
    Net asset value, end of year..........           $13.80      $14.34      $14.80      $15.65      $15.27    $15.64     $15.27
                                                     ======      ======      ======      ======      ======    ======     ======
TOTAL INVESTMENT RETURN (2)...............             5.59%      11.61%      10.12%      13.25%       3.65%    15.50%(3)   3.11%
RATIOS/SUPPLEMENTAL DATA:
    Ratio of expenses to average net assets             -           .20%        .53%        .69%        .81%     1.18%(3)   1.38%
    Ratio of net investment income to average
      net assets..........................             7.23%       7.07%       6.47%       6.01%       5.56%     4.85%(3)   4.88%
    Decrease reflected in above expense ratios due
      to undertakings by the Manager .....             1.16%        .79%        .42%        .25%        .11%      .14%(3)    .09%
    Portfolio Turnover Rate...............            20.23%      27.31%      21.42%      14.99%      19.96%    14.99%     19.96%
    Net Assets, end of year (000's Omitted)         $56,699    $111,696    $145,159    $184,138    $187,405    $3,581    $13,861
</TABLE>
- --------------------------
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.





                                See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
    Premier State Municipal Bond Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering fifteen series including the Michigan Series (the "Series"). Dreyfus
Service Corporation ("Distributor") acts as the distributor of the Fund's
shares. The Distributor is a wholly-owned subsidiary of The Dreyfus
Corporation ("Manager").
    The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them.
    The Series offers both Class A and Class B shares. Class A shares are
subject to a sales charge imposed at the time of purchase and Class B shares
are subject to a contingent deferred sales charge imposed at the time of
redemption on redemptions made within five years of purchase. Other
differences between the two Classes include the services offered to and the
expenses borne by each Class and certain voting rights.
    (A) PORTFOLIO VALUATION: The Series' investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices in the judgment of
the Service are readily available and are representative of the bid side of
the market are valued at the mean between the quoted bid prices (as obtained
by the Service from dealers in such securities) and asked prices (as
calculated by the Service based upon its evaluation of the market for such
securities). Other investments (which constitute a majority of the portfolio
securities) are carried at fair value as determined by the Service, based on
methods which include consideration of: yields or prices of municipal
securities of comparable quality, coupon, maturity and type; indications as
to values from dealers; and general market conditions. Options and financial
futures on municipal and U.S. treasury securities are valued at the last
sales price on the securities exchange on which such securities are primarily
traded or at the last sales price on the national securities market on each
business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
    (B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and, when appropriate,
discounts on investments, is earned from settlement date and recognized on
the accrual basis. Securities purchased or sold on a when-issued or
delayed-delivery basis may be settled a month or more after the trade date.
    The Series follows an investment policy of investing primarily in
municipal obligations of one state. Economic changes affecting the state and
certain of its public bodies and municipalities may affect the ability of
issuers within the state to pay interest on, or repay principal of, municipal
obligations held by the Series.
    (C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Series to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Series may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Series not to distribute such
gain.

PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
    (D) FEDERAL INCOME TAXES: It is the policy of the Series to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the provisions available to certain investment
companies, as defined in applicable sections of the Internal Revenue Code,
and to make distributions of income and net realized capital gain sufficient
to relieve it from all, or substantially all, Federal income taxes.
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
    (A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .55 of 1% of the average
daily value of the Series' net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Series'
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series for any full fiscal year. However, the Manager
had undertaken from May 1, 1993 through January 17, 1994 to reduce the
management fee paid by the Series, to the extent that the Series' aggregate
expenses (excluding certain expenses as described above) exceeded specified
annual percentages of the Series' average daily net assets. The Manager has
currently undertaken from January 18, 1994 through July 1, 1994, to waive
receipt of the management fee payable to it by the Series in excess of an
annual rate of .50 of 1% of the Series' average daily net assets. The
reduction in management fee, pursuant to the undertakings, amounted to
$219,841 for the year ended April 30, 1994.
    The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
    The Distributor retained $53,120 during the year ended April 30, 1994
from commissions earned on sales of the Series' Class A shares.
    The Distributor retained $18,455 during the year ended April 30, 1994
from contingent deferred sales charges imposed upon redemptions of the
Series' Class B shares.
    (B) Under the Distribution Plan ("Class B Distribution Plan") adopted
pursuant to Rule 12b-1 under the Act, the Series pays the Distributor at an
annual rate of .50 of 1% of the value of the Series' Class B shares average
daily net assets, for the costs and expenses in connection with advertising,
marketing and distributing the Series' Class B shares. The Distributor may
make payments to one or more Service Agents (a securities dealer, financial
institution, or other industry professional) based on the value of the
Series' Class B shares owned by clients of the Service Agent. During the year
ended April 30, 1994, $47,921 was charged to the Series pursuant to the Class
B Distribution Plan.
    (C) Under the Shareholder Services Plan, the Series pays the Distributor,
at an annual rate of .25 of 1% of the value of the average daily net assets
of Class A and Class B shares for servicing shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Series and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to Serv
ice Agents in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. For the year ended April 30, 1994,
$487,356 and $23,961 were charged to the Class A and Class B shares,
respectively, pursuant to the Shareholder Services Plan.

PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
    (D) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each trustee
who is not an "affiliated person" receives from the Fund an annual fee of
$2,500 and an attendance fee of $250 per meeting.
    (E) On December 5, 1993, the Manager entered into an Agreement and Plan
of Merger (the "Merger Agreement") providing for the merger of the Manager
with a subsidiary of Mellon Bank Corporation ("Mellon").
    Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number
of contingencies, including receipt of certain regulatory approvals and
approvals of the stockholders of the Manager and of Mellon. The merger is
expected to occur in mid-1994, but could occur later.
    As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board and
shareholders before completion of the merger. Shareholder approval will be
solicited by a proxy statement.
NOTE 3--SECURITIES TRANSACTIONS:
    Purchases and sales of securities amounted to $91,599,814 and
$72,582,136, respectively, for the year ended April 30, 1994, and consisted
entirely of municipal bonds and short-term municipal investments.
    At April 30, 1994, accumulated net unrealized appreciation on investments
was $7,278,991, consisting of $9,972,231 gross unrealized appreciation and
$2,693,240 gross unrealized depreciation.
    At April 30, 1994, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).

PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
    We have audited the accompanying statement of assets and liabilities of
Premier State Municipal Bond Fund, Michigan Series (one of the Series
constituting the Premier Municipal Bond Fund), including the statement of
investments, as of April 30, 1994, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and financial highlights for each of
the years indicated therein. These financial statements and financial highligh
ts 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 generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 1994 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
    In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Premier State Municipal Bond Fund, Michigan Series at April 30,
1994, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.

                                          (Ernst & Young Signature Logo)


New York, New York
June 7, 1994
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Series hereby makes the following
designations regarding its fiscal year ended April 30, 1994:
         -   All the dividends paid from investment income-net are
       "exempt-interest dividends" (not subject to regular Federal, and for
       individuals who are Michigan residents, Michigan personal income
       taxes).
         -   The portion of the $.0775 per share paid by the Series on
       December 6, 1993 representing a long-term capital gain distribution is
       $.0356 per share.
As required by Federal tax law rules, shareholders will receive notification
of their portion of the Series' taxable ordinary dividends (if any) and
capital gain distributions (if any) paid for the 1994 calendar year on Form
1099-DIV which will be mailed by January 31, 1995.


PREMIER STATE MUNICIPAL
BOND FUND, MICHIGAN SERIES
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940



Further information is contained in the Prospectus,
which must precede or accompany this report.





Printed in U.S.A.                            053AR944
1

Annual Report
Premier State
Municipal Bond Fund
Michigan Series
April 30, 1994
(Dreyfus Lion Logo)





     COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
     IN PREMIER STATE MUNICIPAL BOND FUND, MICHIGAN SERIES
     CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX


     EXHIBIT A:
     ___________________________________________________
    |           |                 |                    |
    |           |                 |   PREMIER STATE    |
    |           | LEHMAN BROTHERS |MUNICIPAL BOND FUND,|
    |  PERIOD   |    MUNICIPAL    |  MICHIGAN SERIES   |
    |           |  BOND INDEX *   |      CLASS A       |
    |-----------|-----------------|--------------------|
    |  5/28/87  |          10,000 |              9,552 |
    |  4/30/88  |          10,929 |             10,644 |
    |  4/30/89  |          11,905 |             12,055 |
    |  4/30/90  |          12,763 |             12,729 |
    |  4/30/91  |          14,229 |             14,207 |
    |  4/30/92  |          15,582 |             15,644 |
    |  4/30/93  |          17,553 |             17,716 |
    |  4/30/94  |          17,932 |             18,362 |
    |--------------------------------------------------|





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