LETTER TO SHAREHOLDERS
Dear Shareholder:
During 1994, the bond markets were hurt by a strengthening economy, fears
of rising inflation and a weakening U.S. dollar. As a result, interest rates
have risen much faster than most economists had anticipated. Since the
beginning of this calendar year, long-term municipal bond yields have climbed
by nearly 175 basis points (1.75%), rendering 1994 unprecedented for market
price erosion.
Reflecting this decline in bond prices, the net asset value of Class A
shares in the Series fell by 3.88% for the six-month period ended October 31,
1994. Offsetting this loss were income dividends paid of approximately $.41
per share. This equates to an annualized, tax-free distribution rate per
share of 5.55%, based on the October 31, 1994 closing maximum offering price
per share of $14.52. For the same period, Class B shares also fell 3.88%.
Income dividends of approximately $.37 per share were paid, translating into
an annualized, tax-free distribution rate per share of 5.24%, based on a
closing net asset value of $13.86. All interest income distributed was exempt
from Federal income tax.*
Last year, when it became apparent that the economy was gathering
momentum, we put in place a defensive investment strategy, seeking to reduce
portfolio volatility. We believe that our actions to build cash reserves and
reduce the Series' exposure to more volatile bonds were generally successful.
While we continue to be cautious in our investment strategy, we are
hopeful that the series of Federal Reserve Board moves to tighten interest
rates, begun in February, will start to translate into positive news for the
fixed-income markets. One factor currently working to your Series' advantage
is the municipal market's favorable technical position (i.e., an adequate
demand combined with a sharp reduction in the supply of new issues this
year). We are beginning to view security prices in the municipal market more
favorably than we have in some time, but we are still wary of the strength
exhibited in the economic data. The Federal Reserve's decision in November to
raise the Federal Funds rate another 75 basis points (the sixth rate hike
since February) provides some optimism that we are getting closer to the end
of the tightening. Should a clearer picture emerge, indicating that higher
interest rates are being effective, we are poised to alter our investment
strategy accordingly.
After enjoying a number of years of strong market performance and a
corresponding rise in the value of your Series' portfolio, it is unsettling
to be faced with such an uncertain interest rate environment. Falling prices
earlier this year reduced the value of fixed-income securities, but the level
of tax-free dividends has remained stable.
While the financial press focuses on short-term market swings, we
maintain a longer perspective. We continue to direct our management efforts
towards seeking high current income, free from Federal income tax.
We have included a current Statement of Investments and recent financial
statements for your review. We greatly appreciate your investment in the
Series and look forward to serving your investment needs in the future.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 15, 1994
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Florida Series
STATEMENT OF INVESTMENTS OCTOBER 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--91.7% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
FLORIDA--87.5%
Alachua County Health Facilities Authority, Health Facilities Revenue
(Refunding - Santa Fe Healthcare Facilities Project):
6%, 11/15/2009........................................................ $ 2,500,000 $ 2,210,300
7.60%, 11/15/2013..................................................... 3,500,000 3,545,885
Arcadia, Water and Sewer Revenue 7.75%, 12/1/2021........................... 2,240,000 2,275,952
Brevard County Health Facilities Authority, HR
(Holmes Regional Medical Center Project) 5.70%, 10/1/2008............... 4,585,000 4,312,009
Brevard County Housing Finance Authority, SFMR, Refunding
7%, 3/1/2013 (Insured; FSA)............................................. 1,185,000 1,205,098
Broward County Educational Facilities Authority, Revenue (Nova University)
7.50%, 4/1/2017......................................................... 2,365,000 2,639,365
Broward County Health Facilities Authority, Revenue, Refunding
(Broward County Nursing Home) 7.50%, 8/15/2020 (LOC; Allied Irish Bank) (a) 1,000,000 1,017,820
Charlotte County, Health Care Facilities Revenue
(Charlotte Community Mental Health Project) 9.25%, 7/1/2020............. 1,650,000 1,816,666
Clay County Housing Finance Authority, SFMR 8.20%, 6/1/2021 (Collateralized; GNMA) 710,000 719,081
Dade County Educational Facilities Authority, Revenue (Saint Thomas University)
7.65%, 1/1/2014 (LOC; Sun Bank) (a)..................................... 2,500,000 2,780,800
Dade County Health Facilities Authority, HR
(South Shore Hospital and Medical Center) 7.60%, 8/1/2024............... 2,555,000 2,714,943
Dade County Housing Finance Authority:
MFMR, Refunding (Cutler Meadows Apartment) 6.50%, 7/1/2022 (Insured; FHA) 1,785,000 1,684,397
SFMR:
7.75%, 9/1/2022 (Collateralized; GNMA)................................ 4,420,000 4,536,379
Refunding 6.95%, 12/15/2012 (Insured; FSA)............................ 1,000,000 1,014,030
Dunes Community Development District, Revenue, Refunding (Intracoastal Waterway Bridge)
5.50%, 10/1/2007........................................................ 4,645,000 4,261,880
Duval County Housing Finance Authority, SFMR:
7.85%, 12/1/2022 (Collateralized; GNMA)................................. 2,625,000 2,686,241
7.70%, 9/1/2024 (Collateralized; GNMA).................................. 1,460,000 1,491,594
Escambia County, PCR (Champion International Corp. Project) 6.90%, 8/1/2022. 4,000,000 3,819,280
Escambia County Housing Finance Authority, SFMR 7.80%, 4/1/2022............. 1,205,000 1,223,388
Florida Board of Education, Capital Outlay:
7%, 6/1/2000............................................................ 2,285,000 2,482,607
7%, 6/1/2020 (Prerefunded 6/1/2000) (b)................................. 2,695,000 2,797,275
Public Education:
6%, 6/1/2022.......................................................... 1,000,000 915,920
Refunding:
5.125%, 6/1/2018.................................................. 4,450,000 3,597,825
7.25%, 6/1/2000................................................... 1,830,000 2,013,732
7.25%, 6/1/2023 (Prerefunded 6/1/2000) (b)........................ 1,420,000 1,508,864
PREMIER STATE MUNICIPAL BOND FUND, Florida Series
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
FLORIDA (CONTINUED)
Florida Housing Finance Agency:
Home Ownership Revenue 7.90%, 3/1/2022 (Collateralized; GNMA)........... $ 3,800,000 $ 3,867,982
Multi-Family Housing (Driftwood Terrace Project)
7.65%, 12/20/2031 (Collateralized; GNMA).............................. 3,440,000 3,520,874
Single Family Mortgage 6.65%, 7/1/2026.................................. 3,000,000 2,841,120
Florida Municipal Power Agency, Revenue (All Requirements Power Supply Project)
5.10%, 10/1/2025 (Insured; AMBAC)....................................... 6,000,000 4,676,700
Florida Turnpike Authority, Turnpike Revenue
7.50%, 7/1/2019 (Prerefunded 7/1/1999) (b).............................. 5,685,000 6,264,699
Greater Orlando Aviation Authority, Airport Facilities Revenue, Refunding
5.50%, 10/1/2008 (Insured; AMBAC)....................................... 5,940,000 5,406,053
Highlands County Health Facilities Authority, Revenue (Adventist Sunbelt Hospital)
7%, 11/15/2014.......................................................... 1,500,000 1,547,730
Hillsborough County, Utility Revenue, Refunding:
7%, 8/1/2001............................................................ 985,000 1,070,991
6.625%, 8/1/2011........................................................ 4,000,000 3,860,440
7%, 8/1/2014............................................................ 4,765,000 4,701,625
Hillsborough County Aviation Authority, Revenue, Refunding:
(Delta Airlines) 7.75%, 1/1/2024........................................ 1,500,000 1,494,585
(Tampa International Airport):
5.375%, 10/1/2008 (Insured; FGIC)..................................... 2,000,000 1,817,140
5.375%, 10/1/2023 (Insured; FGIC)..................................... 5,750,000 4,669,690
Hillsborough County Port District, Revenue (Tampa Port Authority) 8.25%, 6/1/2009 3,000,000 3,280,140
Indian Trace Community Development District,
Water and Sewer Revenue 8.50%, 4/1/1997................................. 500,000 526,515
Jackson County, PCR, Refunding (Gulf Power Co. Project) 6.75%, 3/1/2022..... 3,930,000 4,090,973
Jacksonville, Capital Improvement Revenue Certificates (Gator Bowl Project)
5.50%, 10/1/2019 (Insured; AMBAC)....................................... 2,225,000 1,910,652
Jacksonville Health Facilities Authority, HR, Refunding (Saint Luke's Hospital)
7.125%, 11/15/2020...................................................... 6,700,000 6,837,417
Jupiter, Sales Tax Revenue 7.40%, 9/1/2020 (Prerefunded 11/1/2000) (b)...... 1,750,000 1,944,180
Lake County, Resource Recovery Industrial Development Revenue, Refunding
(NRG/Recovery Group) 5.85%, 10/1/2009................................... 6,000,000 5,276,160
Leesburg, HR, Refunding:
Capital Improvement (Regional Medical Center Project - B):
8.60%, 7/1/2018 (Prerefunded 7/1/1996) (b)............................ 1,100,000 1,192,873
(Leesburg Regional Medical Center Project - A) 6.25%, 7/1/2009.......... 1,850,000 1,703,943
(Leesburg Regional Medical Center Project - B) 5.65%, 7/1/2008.......... 4,000,000 3,489,560
Leon County Educational Facilities Authority, COP (Southgate Residence Hall
Project):
3.75%, 12/1/1995 (c).................................................... 259,200 51,840
9%, 9/1/2014 (c)........................................................ 5,235,000 1,047,000
PREMIER STATE MUNICIPAL BOND FUND, Florida Series
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
FLORIDA (CONTINUED)
Manatee County Housing Finance Authority, SFMR 8.10% 11/1/2020.............. $ 520,000 $ 530,743
Miami Beach Redevelopment Agency, Tax Increment Revenue
(City Center - Historic Convention Village) 5.625%, 12/1/2009........... 2,000,000 1,766,540
Nassau County, PCR, Refunding (ITT Rayonier, Inc. Project):
7.65%, 6/1/2006......................................................... 4,500,000 4,606,605
6.20%, 7/1/2015......................................................... 1,420,000 1,273,910
North Miami Educational Facilities Revenue (Johnson and Wales University
Project)
6.10%, 4/1/2013......................................................... 5,000,000 4,501,350
North Miami Health Facilities Authority, Health Facilities Revenue
(Villa Maria Nursing Housing Project) 7.50%, 9/1/2012................... 2,735,000 2,896,529
Orange County Health Facilities Authority, Health Facilities Revenue
(Mental Health Service Project) 9.25%, 7/1/2020......................... 3,815,000 4,111,197
Orange County Housing Finance Authority, Mortgage Revenue 8.10%, 11/1/2021.. 875,000 887,714
Orlando and Orange County Expressway Authority, Expressway Revenue, Refunding
(Junior Lien) 5.125%, 7/1/2020 (Insured; FGIC).......................... 3,220,000 2,569,077
Orlando Utilities Commission, Water and Electric Revenue:
5.125%, 10/1/2019....................................................... 3,220,000 2,589,588
7%, 10/1/2023 (Prerefunded 10/1/1999) (b)............................... 1,000,000 1,085,870
5.50%, 10/1/2026........................................................ 10,000,000 8,336,200
5.50%, 10/1/2027........................................................ 4,000,000 3,328,680
Osceola County Industrial Development Authority, Revenue
(Community Provider Pooled Loan Program) 7.75%, 7/1/2017................ 5,235,000 5,163,542
Palm Beach County, Solid Waste Industrial Development Revenue:
(Okeelanta Power LP Project) 6.85%, 2/15/2021........................... 6,750,000 6,170,378
(Osceola Power Limited Partnership) 6.85%, 1/1/2014..................... 4,300,000 3,998,398
Palm Beach County Housing Finance Authority, Single Family Mortgage Purchase Revenue
7.60%, 3/1/2023......................................................... 3,405,000 3,432,717
Pinellas County, PCR, Refunding (Florida Power Corp.) 7.20%, 12/1/2014...... 3,000,000 3,136,230
Pinellas County Health Facilities Authority, Revenue
(Hospital - Morton Plant Health Systems Project) 5.50%, 11/15/2009 (Insured; MBIA) 2,000,000 1,809,820
Pinellas County Housing Finance Authority, SFMR 7.70%, 8/1/2022............. 2,810,000 2,852,262
Polk County Housing Finance Authority, SFMR:
8.10%, 9/1/2020......................................................... 605,000 625,007
7.875%, 9/1/2022........................................................ 1,330,000 1,343,899
Saint Lucie County:
Sales Tax Revenue, Refunding 5%, 10/1/2019.............................. 2,500,000 1,963,125
SWDR (Florida Power and Light Co. Project) 7.15%, 2/1/2023.............. 4,000,000 4,061,480
South Indian River Water Control District, Refunding 7.50%, 10/1/2006
(Prerefunded 10/1/1998) (b)............................................. 1,000,000 1,094,990
PREMIER STATE MUNICIPAL BOND FUND, Florida Series
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
FLORIDA (CONTINUED)
Sunrise, Special Tax District Number 1, Refunding
6.375%, 11/1/2021 (LOC; Bayerische Hypotheken-und Weschel Bank) (a)..... $ 2,500,000 $ 2,381,250
Tampa:
Allegany Health System Revenue (Saint Joseph Hospital):
7.125%, 12/1/2005 (Prerefunded 12/1/1999) (b)......................... 2,500,000 2,729,775
7.375%, 12/1/2023 (Prerefunded 12/1/1999) (b)......................... 3,455,000 3,810,519
Water and Sewer Revenue:
6.30%, 10/1/2006 (d).................................................. 6,100,000 6,216,632
Refunding 6.60%, 10/1/2014 (Insured; FGIC, Prerefunded 10/1/2002) (b). 10,000,000 10,617,300
Volushia County Health Facilities Authority, Hospital Facilities Revenue
(Memorial Health System Project):
8.125%, 6/1/2008...................................................... 1,970,000 2,250,824
8.25%, 6/1/2020 (Prerefunded 6/1/2000) (b)............................ 2,500,000 2,871,225
U.S. RELATED--4.2%
Guam Airport Authority, Revenue 6.70%, 10/1/2023............................ 5,000,000 4,737,350
Puerto Rico Commonwealth:
6.25%, 7/1/2010......................................................... 2,000,000 1,935,840
6.80%, 7/1/2021 (Prerefunded 7/1/2000) (b).............................. 2,000,000 2,171,960
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport
Project)
8.10%, 10/1/2005...................................................... 2,500,000 2,685,375
--------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $256,765,539)................... $252,906,114
==============
SHORT-TERM MUNICIPAL INVESTMENTS--8.3%
FLORIDA:
Dade County, Water and Sewer Systems Revenue, VRDN 3.30% (e)................ $ 4,300,000 $ 4,300,000
Dade County Industrial Development Authority, Exempt Facilities Revenue, VRDN
(Florida Power and Light Co.) 3.55% (e)................................. 10,000,000 10,000,000
Jacksonville Health Facilities Authority, Health Facilities Revenue, VRDN:
(Baptist Health Properties Project) 3.75% (e)........................... 5,000,000 5,000,000
(HSI Support Systems, Inc.) 3.20% (e)................................... 3,500,000 3,500,000
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $22,800,000)................... $ 22,800,000
==============
TOTAL INVESTMENTS--100.0%
(cost $279,565,539)..................................................... $275,706,114
==============
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Florida Series
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association SWDR Solid Waste Disposal Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
AAA Aaa AAA 35.0%
AA Aa AA 13.8
A A A 10.3
BBB Baa BBB 21.5
BB Ba BB .5
F1+ & F1 MIG1, VMIG1 & P1 SP1 & A1 8.3
Not Rated (g) Not Rated (g) Not Rated (g) 10.6
--------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) 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.
(c) Non-income producing security; interest payments in default. The
valuation of these securities has been determined in good faith under the
direction of the Board of Trustees.
(d) Inverse floater security - the interest rate is subject to change
periodically.
(e) Security payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's, have been determined by the Fund's Board of Trustees to be of
comparable quality to those rated securities in which the Fund may
invest.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Florida Series
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1994 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $279,565,539)-see statement..................................... $275,706,114
Cash.................................................................... 1,743,113
Interest receivable..................................................... 4,493,646
Receivable for investment securities sold............................... 3,660,413
Receivable for shares of Beneficial Interest subscribed................. 216,316
Prepaid expenses........................................................ 11,532
--------------
285,831,134
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $135,072
Due to the Distributor.................................................. 71,781
Payable for shares of Beneficial Interest redeemed...................... 570,461
Accrued expenses........................................................ 300,942 1,078,256
---------- --------------
NET ASSETS ................................................................ $284,752,878
==============
REPRESENTED BY:
Paid-in capital......................................................... $287,832,036
Accumulated undistributed net realized gain on investments.............. 780,267
Accumulated net unrealized (depreciation) on investments_Note 3(b)...... (3,859,425)
--------------
NET ASSETS at value......................................................... $284,752,878
==============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 18,858,609
==============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 1,674,647
==============
NET ASSET VALUE per share:
Class A Shares
($261,537,021 / 18,858,609 shares).................................... $13.87
=======
Class B Shares
($23,215,857 / 1,674,647 shares)...................................... $13.86
=======
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Florida Series
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 9,885,139
EXPENSES:
Management fee_Note 2(a).............................................. $ 841,764
Shareholder servicing costs_Note 2(c)................................. 461,199
Distribution fees (Class B shares)_Note 2(b).......................... 58,855
Professional fees..................................................... 16,939
Custodian fees........................................................ 16,028
Prospectus and shareholders' reports.................................. 12,328
Trustees' fees and expenses_Note 2(d)................................. 1,196
Registration fees..................................................... 1,013
Miscellaneous......................................................... 11,364
------------
1,420,686
Less_reduction in management fee due to
undertakings_Note 2(a)............................................ 27,718
------------
TOTAL EXPENSES.................................................. 1,392,968
--------------
INVESTMENT INCOME--NET.......................................... 8,492,171
--------------
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments_Note 3(a).............................. $1,532,778
Net realized gain on financial futures_Note 3(a)........................ 11,431
------------
NET REALIZED GAIN..................................................... 1,544,209
Net unrealized (depreciation) on investments............................ (13,160,073)
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS..................... (11,615,864)
--------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (3,123,693)
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Florida Series
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
APRIL 30, OCTOBER 31, 1994
1994 (UNAUDITED)
-------------- -------------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................. $ 18,361,672 $ 8,492,171
Net realized gain on investments....................................... 322,634 1,544,209
Net unrealized (depreciation) on investments for the period............ (12,210,827) (13,160,073)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. 6,473,479 (3,123,693)
-------------- --------------
DIVIDENDS TO SHAREHOLDERS:
From investment income--net:
Class A shares....................................................... (17,572,099) (7,900,450)
Class B shares....................................................... (789,573) (591,721)
From net realized gain on investments:
Class A shares....................................................... (884,752) ___
Class B shares....................................................... (51,557) ___
In excess of net realized gain on investments:
Class A shares....................................................... (721,877) ___
Class B shares....................................................... (42,065) ___
-------------- --------------
TOTAL DIVIDENDS.................................................. (20,061,923) (8,492,171)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares....................................................... 43,755,340 7,387,811
Class B shares....................................................... 18,173,895 2,546,557
Dividends reinvested:
Class A shares....................................................... 6,943,770 2,907,897
Class B shares....................................................... 401,953 250,145
Cost of shares redeemed:
Class A shares....................................................... (48,253,346) (27,870,470)
Class B shares....................................................... (856,937) (1,120,605)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS................................................... 20,164,675 (15,898,665)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ 6,576,231 (27,514,529)
NET ASSETS:
Beginning of period.................................................... 305,691,176 312,267,407
-------------- --------------
End of period.......................................................... $312,267,407 $284,752,878
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SHARES
--------------------------------------------------------------------------
CLASS A CLASS B
------------------------------------ ------------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
APRIL 30, OCTOBER 31, 1994 APRIL 30, OCTOBER 31, 1994
1994 (UNAUDITED) 1994 (UNAUDITED)
-------------- ----------------- -------------- -------------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold......................... 2,866,976 512,642 1,194,240 176,610
Shares issued for dividends reinvested. 457,470 202,426 26,554 17,412
Shares redeemed..................... (3,200,998) (1,939,051) (56,660) (77,591)
--------------- ------------- ------------- ---------------
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING................. 123,448 (1,223,983) 1,164,134 116,431
============== ============= ============= =============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Florida 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 period indicated. This
information has been derived from the Series' financial statements.
CLASS A SHARES CLASS B SHARES
------------------------------------------------------- -----------------------------------
SIX MONTHS SIX MONTHS
ENDED OCTOBER ENDED OCTOBER
YEAR ENDED APRIL 30, 31, 1994 YEAR ENDED APRIL 30 31, 1994
-------------------------------------------- ----------------------
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED) 1993(1) 1994 (UNAUDITED)
------ ------ ------ ------ ------ --------- ------ ------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period... $13.48 $13.34 $13.93 $14.33 $15.02 $14.43 $14.59 $15.01 $14.42
------ ------ ------ ------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net.. 1.02 .99 .95 .92 .85 .41 .24 .77 .37
Net realized and unrealized
gain (loss) on investments (.11) .61 .41 .86 (.51) (.56) .42 (.51) (.56)
------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS........ .91 1.60 1.36 1.78 .34 (.15) .66 .26 (.19)
------ ------ ------ ------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment
income--net........... (1.02) (.99) (.95) (.92) (.85) (.41) (.24) (.77) (.37)
Dividends from net realized
gain on investments... (.03) (.02) (.01) (.17) (.04) --- --- (.04) ---
Dividends in excess of net
realized gain on investments --- --- --- --- (.04) --- --- (.04) ---
------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS... (1.05) (1.01) (.96) (1.09) (.93) (.41) (.24) (.85) (.37)
------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $13.34 $13.93 $14.33 $15.02 $14.43 $13.87 $15.01 $14.42 $13.86
====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN (2). 6.83% 12.40% 10.09% 12.84% 2.14% (2.24%)(3) 15.60%(3) 1.54% (2.80%)(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets.... --- .21% .52% .69% .80% .87%(3) 1.12%(3) 1.34% 1.38%(3)
Ratio of net investment
income to average net assets 7.24% 7.11% 6.65% 6.21% 5.61% 5.59%(3) 4.87%(3) 4.91% 5.03%(3)
Decrease reflected in above
expense ratios due to
undertakings by the Manager 1.08% .74% .41% .21% .10% .02%(3) .12%(3) .09% .02%(3)
Portfolio Turnover Rate. 27.69% .28% 20.99% 33.18% 20.84% 18.99%(4) 33.18% 20.84% 18.99%(4)
Net Assets, end of
period (000's Omitted) $67,416 $177,927 $245,474 $299,775 $289,791 $261,537 $5,916 $22,476 $23,216
- -------------------------
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
PREMIER STATE MUNICIPAL BOND FUND, Florida Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 Florida Series (the "Series"). Dreyfus
Service Corporation, until August 24, 1994, acted as the distributor of the
Fund's shares. Dreyfus Service Corporation is a wholly-owned subsidiary of
The Dreyfus Corporation ("Manager"). Effective August 24, 1994, the Manager
became a direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
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 on a pro rata basis.
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 are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
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.
PREMIER STATE MUNICIPAL BOND FUND, Florida Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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.
(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 applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise 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, 1994 through June 30, 1994 to waive receipt of the
management fee payable to it by the Series in excess of an annual rate of .50
of 1% (excluding certain expenses as described above) of the Series' average
daily net assets and thereafter, had undertaken from July 1, 1994 through
July 7, 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 reduction in management fee, pursuant to the undertakings,
amounted to $27,718 for the six months ended October 31, 1994.
Dreyfus Service Corporation retained $12,377 during the six months ended
October 31, 1994 from commissions earned on sales of the Series' Class A
shares.
Prior to August 24, 1994, Dreyfus Service Corporation retained $15,723
from contingent deferred sales charges imposed upon redemptions of the
Series' Class B shares.
(B) On August 3, 1994, the Series' shareholders approved a revised
Distribution Plan with respect to Class B shares only (the "Class B
Distribution Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the
Class B Distribution Plan, effective August 24, 1994, the Fund pays the
Distributor for distributing the Series' Class B shares at an annual rate of
.50 of 1% of the value of the average daily net assets of Class B shares.
Prior to August 24, 1994, the Distribution Plan ("prior Class B
Distribution Plan") provided that the Series pay Dreyfus Service Corporation
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. Dreyfus
Service Corporation made payments to one or more Service Agents based on the
value of the Series' Class B shares owned by clients of the Service Agent.
During the six months ended October 31, 1994, $22,263 was charged to the
Series pursuant to the Class B Distribution Plan and $36,592 was charged to
the Series pursuant to the prior Class B Distribution Plan.
PREMIER STATE MUNICIPAL BOND FUND, Florida Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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. From May 1, 1994 through August 23,
1994, $224,083 and $18,296 were charged to Class A and Class B shares,
respectively, by Dreyfus Service Corporation. From August 24, 1994 through
October 31, 1994, $129,109 and $11,132 were charged to Class A and Class B
shares, respectively, by the Distributor pursuant to the Shareholder Services
Plan.
(D) Prior to August 24, 1994 certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. 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.
NOTE 3--SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities
amounted to $96,092,444 and $115,966,110, respectively, for the six months
ended October 31, 1994, and consisted entirely of long-term and short-term
municipal investments.
The Series is engaged in trading financial futures contracts. The Series
is exposed to market risk as a result of changes in the value of the
underlying financial instruments. Investments in financial futures require
the Series to "mark to market" on a daily basis, which reflects the change in
the market value of the contract at the close of each day's trading.
Accordingly, variation margin payments are made or received to reflect daily
unrealized gains or losses. When the contracts are closed, the Series
recognizes a realized gain or loss. These investments require initial margin
deposits with a custodian, which consists of cash or cash equivalents, up to
approximately 10% of the contract amount. The amount of these deposits is
determined by the exchange or Board of Trade on which the contract is traded
and is subject to change. At October 31, 1994, there were no financial
futures contracts outstanding.
(B) At October 31, 1994, accumulated net unrealized depreciation on
investments was $3,859,425, consisting of $7,630,560 gross unrealized
appreciation and $11,489,985 gross unrealized depreciation.
At October 31, 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, Florida Series
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Premier State Municipal Bond Fund,
Florida Series (one of the Series constituting the Premier State Municipal
Bond Fund) as of October 31, 1994, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended October 31, 1994. These financial statements and financial highlights
are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
April 30, 1994 and financial highlights for each of the five years in the
period ended April 30, 1994 and in our report dated June 7, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst & Young LLP Signature Logo)
New York, New York
December 6, 1994
PREMIER STATE MUNICIPAL
BOND FUND, FLORIDA SERIES
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 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. 051/615SA9410BKR
Semi-Annual Report
Premier State
Municipal Bond Fund
Florida Series
October 31, 1994
(Dreyfus Lion Logo)
