LETTER TO SHAREHOLDERS
Dear Shareholder:
At the close of your Series' fiscal year on April 30, 1995, the net asset
value for Class A shares was $12.43, which was $.07 (.56%) lower than the net
asset value at inception on May 5, 1994. Income dividends of approximately
$.757 per share were paid during this period, which translates into an
annualized distribution rate per share of 5.89%, based on the April 30
closing maximum offering price.
The net asset value for Class B shares was also $12.43, which was $.07
(.56%) lower than the net asset value at inception on May 5, 1994. Income
dividends of approximately $.692 per share were paid during this period,
which translates into an annualized distribution rate per share of 5.64%
based on the April 30 closing net asset value.
We are pleased to report that all dividends paid from the net investment
income during this period were exempt from Federal and State of Colorado
personal income taxes.*
The past fiscal year was marked by market turbulence and mixed economic
signals. The Series saw both sides of the volatile market as the Bond Buyer
25 Bond Revenue Index moved approximately 117 basis points. We attempted to
manage the Series through these difficult times by purchasing defensive
coupons to balance the discount holdings in the portfolio and by shortening
the average duration of the portfolio.
Factors which negatively affected the performance of the Series during
the past fiscal year included interest rate increases by the Federal Reserve
Board, inflation pressures, and certain conditions in the municipal
marketplace. By the first quarter of 1995, however, these pressures had
abated and both the market and the Series began a strong recovery.
As your Series' fiscal year progressed, new issuance of municipal bonds
in the specialty state sector became progressively thin, which forced
secondary market prices to high levels. Supply continued to be scant after
the New Year, but our investment posture remained unchanged. Because we did
not chase the roller-coaster market as it moved through the second and third
fiscal quarters, the Series was well positioned to capitalize on the market
strength which materialized during the last fiscal quarter. As a result, your
Series was able to rebound to its current level.
Overall, we view the prospect of a continuation of the current market
rally with a cautious eye, since it appears that much of the appreciation
expected for 1995 is already behind us. With this in mind, the Series remains
fully invested to seek to take advantage of any additional market run-up in
an environment witnessing a continued scarcity of securities, and to seek a
high level of tax exempt income.
We have included a current Statement of Investments and recent financial
statements for your review. We appreciate your investment in the Series and
look forward to serving your investment needs in the future.
Sincerely,
(Signature Logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 16, 1995
New York, N.Y.
*Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
PREMIER STATE MUNICIPAL BOND FUND, COLORADO SERIES APRIL 30, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER STATE
MUNICIPAL BOND FUND, COLORADO SERIES CLASS A SHARES AND CLASS B SHARES AND
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
(exhibit A)
In Dollars
$10,665
Lehman Brothers Municipal Bond
Index*
$10,221
Premier State
Municipal Bond Fund, Colorado Series
(Class B Shares)
$10,098
Premier State
Municipal Bond Fund, Colorado Series
(Class A Shares)
*Source: Lehman Brothers
<TABLE>
<CAPTION>
ACTUAL AGGREGATE TOTAL RETURNS
CLASS A CLASS B
- ------------------------------------------------------------ -----------------------------------------------------------
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period ended 4/30/95 Sales Charge Sales Charge (4.5%) Period ended 4/30/95 Redemption Redemption*
- ------------------- -------------- ----------------- ------------------ --------- --------------
<S> <C> <C> <C> <C> <C>
From Inception (5/5/94) 5.75% .98% From Inception (5/5/94) 5.19% 2.21%
</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 and
Class B shares of Premier State Municipal Bond Fund, Colorado Series on
5/5/94 (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 4/30/94 is used as the beginning value on 5/5/94. All dividends and
capital gain distributions are reinvested.
The Series invests primarily in Colorado municipal securities and the
performance shown in the line graph takes into account the maximum initial
sales charge on Class A shares and a maximum contingent deferred sales charge
on Class B 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, geographically
unrestricted 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. Also, unlike the Fund which
principally limits investments to Colorado municipal obligations, the Index
is not state-specific. 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.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, COLORADO SERIES
STATEMENT OF INVESTMENTS APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-92.9% AMOUNT VALUE
------------ ------------
<S> <C> <C>
COLORADO--88.1%
Adams County, PCR, Refunding (Public Service Co. of Colorado Project)
5.875%, 4/1/2014 (Insured; MBIA)........................................ $ 200,000 $ 196,738
Arvada, Sales and Use Tax Revenue, Refunding and Improvement
6.25%, 12/1/2012 (Insured; FGIC)........................................ 200,000 205,080
Colorado Board of Community Colleges and Occupational Education, Revenue
(Red Rocks Community College Project) 6%, 11/1/2019 (Insured; AMBAC).... 300,000 297,336
Colorado Health Facilities Authority, Revenues:
Hospital (PSL Healthcare Systems Project) 6.875%, 2/15/2023............. 500,000 483,420
Refunding (Boulder Community Hospital) 5.875%, 10/1/2023 (Insured; MBIA) 200,000 193,164
Colorado Housing Finance Authority, Single Family Program
7.55%, 8/1/2023 (Insured; FHA).......................................... 195,000 201,893
Colorado Springs, Utilities Revenue:
6.75%, 11/15/2021....................................................... 200,000 212,516
Refunding 6.50% 11/15/2015.............................................. 165,000 171,117
Colorado Water Resource Power Development Authority, Clean Water Revenue
6.30%, 9/1/2014......................................................... 200,000 205,952
Denver City and County, Airport Revenue 7%, 11/15/2025...................... 200,000 195,556
Garfield, Pitkin and Eagle Counties, School District Number 1
9%, 12/15/2008 (Insured; MBIA).......................................... 200,000 255,918
Lakewood, Multi-Family Housing Revenue, Mortgage
6.55%, 10/1/2015 (Insured; FHA)......................................... 200,000 199,094
Metro Wastewater Reclamation District, Gross Revenue 6%, 4/1/2010........... 200,000 202,494
Platte River Power Authority, Power Revenue, Refunding 6.125%, 6/1/2014..... 200,000 202,136
San Miguel County Housing Authority, Multi-Family Housing Revenue, Refunding
(Telluride Village Apartments Project) 6.40%, 7/1/2023.................. 300,000 277,947
Westminster, Sales and Use Tax Refunding, Revenue 6.25%, 12/1/2012
(Insured; FGIC)......................................................... 200,000 204,710
U.S. RELATED-4.8%
Puerto Rico Electric Power Authority, Power Revenue 6%, 7/1/2014 (Insured; FSA) 200,000 201,436
----------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $3,866,801)....................................................... $3,906,507
==========
SHORT-TERM MUNICIPAL INVESTMENTS-7.1%
COLORADO:
Colorado Student Obligation Board Authority, Student Loan Revenue, VRDN
4.65% (LOC; Student Loan Marketing Association; Sumitomo Bank Ltd.) (a,b) $ 200,000 $ 200,000
PREMIER STATE MUNICIPAL BOND FUND, COLORADO SERIES
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------ ------------
COLORADO (CONTINUED)
Denver City and County, VRDN (Rose Medical Center) 4.25% (Insured; AMBAC) (b) $ 100,000 $ 100,000
-----------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $300,000)......................................................... $ 300,000
==========
TOTAL INVESTMENTS-100.0%
(cost $4,166,801)....................................................... $4,206,507
==========
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FHA Federal Housing Administration Insurance Corporation
FSA Financial Security Assurance PCR Pollution Control Revenue
VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
AAA Aaa AAA 44.1%
AA Aa AA 28.4
BBB Baa BBB 22.7
F1 MIG1 SP1 4.8
-------
100.0%
=======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) 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.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, COLORADO SERIES
STATEMENT OF ASSETS AND LIABILITIES APRIL 30,1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $4,166,801)-see statement....................................... $4,206,507
Cash.................................................................... 52,475
Receivable for shares of Beneficial Interest subscribed................. 79,251
Interest receivable..................................................... 73,436
Prepaid expenses-Note 1(e).............................................. 26,337
Due from The Dreyfus Corporation........................................ 3,559
----------
4,441,565
LIABILITIES:
Due to Distributor...................................................... $ 2,131
Payable for investment securities purchased............................. 200,036
Accrued expenses........................................................ 36,855 239,022
--------- ----------
NET ASSETS ................................................................ $4,202,543
===========
REPRESENTED BY:
Paid-in capital......................................................... $4,193,030
Accumulated net realized (loss) on investments.......................... (30,193)
Accumulated net unrealized appreciation on investments-Note 3........... 39,706
----------
NET ASSETS at value......................................................... $4,202,543
===========
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 80,713
===========
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 257,285
===========
NET ASSET VALUE per share:
Class A Shares
($1,003,407 / 80,713 shares).......................................... $12.43
======
Class B Shares
($3,199,136 / 257,285 shares)......................................... $12.43
======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, COLORADO SERIES
STATEMENT OF OPERATIONS
FROM MAY 6, 1994 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1995
INVESTMENT INCOME:
<S> <C> <C>
INTEREST INCOME......................................................... $182,239
EXPENSES:
Management fee-Note 2(a).............................................. $ 16,404
Shareholder servicing costs-Note 2(c)................................. 22,633
Distribution fees (Class B shares)-Note 2(b).......................... 11,180
Organization expenses-Note 1(e)....................................... 6,271
Prospectus and shareholders' reports.................................. 4,111
Legal fees............................................................ 2,916
Registration fees..................................................... 2,130
Custodian fees........................................................ 1,025
Auditing fees......................................................... 645
Trustees' fees-Note 2(d).............................................. 29
Miscellaneous......................................................... 2,821
--------
70,165
Less-expense reimbursement from Manager due to
undertakings-Note 2(a)............................................ 58,829
--------
TOTAL EXPENSES.................................................. 11,336
--------
INVESTMENT INCOME-NET........................................... 170,903
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $(30,193)
Net unrealized appreciation on investments.............................. 39,706
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 9,513
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $180,416
=========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, COLORADO SERIES
STATEMENT OF CHANGES IN NET ASSETS
FROM MAY 6, 1994 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1995
OPERATIONS:
<S> <C>
Investment income-net..................................................................... $ 170,903
Net realized (loss) on investments........................................................ (30,193)
Net unrealized appreciation on investments for the period................................. 39,706
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................ 180,416
-----------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares.......................................................................... (46,233)
Class B shares.......................................................................... (124,670)
-----------
TOTAL DIVIDENDS..................................................................... (170,903)
-----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.......................................................................... 2,423,449
Class B shares.......................................................................... 4,771,752
Dividends reinvested:
Class A shares.......................................................................... 27,461
Class B shares.......................................................................... 77,605
Cost of shares redeemed:
Class A shares.......................................................................... (1,455,718)
Class B shares.......................................................................... (1,651,519)
-----------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS....................... 4,193,030
-----------
TOTAL INCREASE IN NET ASSETS..................................................... 4,202,543
NET ASSETS:
Beginning of period....................................................................... ---
-----------
End of period............................................................................ $ 4,202,543
==========
</TABLE>
<TABLE>
<CAPTION>
SHARES
-------------------------
CLASS A CLASS B
------------ ------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold................................................................ 196,569 386,112
Shares issued for dividends reinvested..................................... 2,240 6,325
Shares redeemed............................................................ (118,096) (135,152)
----------- ------------
NET INCREASE IN SHARES OUTSTANDING................................... 80,713 257,285
=========== ============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, COLORADO 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 the period May 6, 1994
(commencement of operations) to April 30, 1995. This information has been
derived from the Series' financial statements.
PER SHARE DATA: CLASS A SHARES CLASS B SHARES
--------------- ---------------
<S> <C> <C>
Net asset value, beginning of period.................................... $12.50 $12.50
------- -------
INVESTMENT OPERATIONS:
Investment income-net................................................... .76 .69
Net realized and unrealized (loss) on investments....................... (.07) (.07)
------- -------
TOTAL FROM INVESTMENT OPERATIONS...................................... .69 .62
------- -------
DISTRIBUTIONS;
Dividends from investment income-net.................................... (.76) (.69)
------- -------
Net asset value, end of period.......................................... $12.43 $12.43
====== =======
TOTAL INVESTMENT RETURN(1).................................................. 5.83%(2) 5.26%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................. -- .50%(2)
Ratio of net investment income to average net assets.................... 6.20%(2) 5.58%(2)
Decrease reflected in above expense ratios due to undertakings
by the Manager........................................................ 1.99%(2) 1.97%(2)
Portfolio Turnover Rate................................................. 21.81%(3) 21.81%(3)
Net Assets, end of period (000's Omitted)............................... $1,003 $3,199
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
See notes to financial statements.
</TABLE>
PREMIER STATE MUNICIPAL BOND FUND, COLORADO 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 of shares of Beneficial Interest including the
Colorado Series (the "Series") which commenced operations on May 6, 1994.
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.
As of April 30, 1995, Major Trading Corporation, a subsidiary of Mellon
Bank Investments Corporation, held 34,070 shares of Class A and 33,922 shares
of Class B. Mellon Bank Investments Corporation is a subsidiary of Mellon
Bank.
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 FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., 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
PREMIER STATE MUNICIPAL BOND FUND, COLORADO SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
(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, if any, 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, 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.
The Fund has an unused capital loss carryover of $563 available for
Federal income tax purposes to be applied against future net securities
profit, if any, realized subsequent to April 30, 1995. The carryover does not
include net realized securities losses from November 1, 1994 through April
30, 1995 which are treated, for Federal income tax purposes, as arising in
fiscal 1996. If not applied, the carryover expires in fiscal 2003.
(E) OTHER: Organization expenses paid by the Series are included in
prepaid expenses and are being amortized to operations from May 6, 1994, the
date operations commenced, over the period during which it is expected that a
benefit will be realized, not to exceed five years. At April 30, 1995, the
unamortized balance of such expenses amounted to $25,083.
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 6, 1994 through April 2, 1995 to reimburse all fees
and expenses of the Series (excluding 12b-1 distribution plan fees and
certain expenses as described above), and thereafter through April 30, 1995,
to reduce management fee paid by and reimburse such excess expenses of 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 expense reimbursement, pursuant to the
undertakings, amounted to $58,829 for the period ended April 30, 1995.
The Manager has currently undertaken through June 30, 1995 or until such
time as the net assets of the Series exceed $50 million, regardless of
whether they remain at that level, to reimburse all fees and
PREMIER STATE MUNICIPAL BOND FUND, COLORADO SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
expenses of the Series (excluding 12b-1 distribution plan fees, and certain
expenses as described above). 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.
Dreyfus Service Corporation retained $671 during the period ended April
30, 1995 from commissions earned on sales of the Series' Class A shares.
(B) On August 3, 1994, Series' shareholders approved a revised
Distribution Plan with respect to Class B shares only (the "Class B
Distribution Plan") pursuant to 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 period ended April 30, 1995, $9,770 was charged to the Series
pursuant to the Class B Distribution Plan and $1,410 was charged to the
Series pursuant to the prior 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. From May 6, 1994 through August 23,
1994, $368 and $937 were charged to Class A and Class B shares, respectively,
by Dreyfus Service Corporation. From August 24, 1994 through April 30, 1995,
$1,498 and $4,653 were charged to the 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. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $6,784,482 and $2,585,794, respectively, for the period ended
April 30, 1995, and consisted entirely of long-term and short-term municipal
investments.
At April 30, 1995, accumulated net unrealized appreciation on investments
was $39,706, consisting of $64,805 gross unrealized appreciation and $25,099
gross unrealized depreciation.
At April 30, 1995, 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, COLORADO SERIES
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER STATE MUNICIPAL BOND FUND, COLORADO SERIES
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Premier State Municipal Bond Fund,
Colorado Series, (one of the Series constituting the Premier State Municipal
Bond Fund) as of April 30, 1995, and the related statements of operations and
changes in net assets and financial highlights for the period from May 6,
1994 (commencement of operations) to April 30, 1995. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit.
We conducted our audit 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, 1995, by correspondence with the custodian
and brokers. 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 audit provides
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, Colorado Series at April 30,
1995, the results of its operations, the changes in its net assets and the
financial highlights for the period from May 6, 1994 to April 30, 1995, in
conformity with generally accepted accounting principles.
(Ernst & Young LLP Signature logo)
New York, New York
June 6, 1995
PREMIER STATE MUNICIPAL BOND FUND, COLORADO SERIES
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Series hereby designates all the
dividends paid from investment income-net during the period May 6, 1994
(commencement of operations) to April 30, 1995 as "exempt interest dividends"
(not subject to regular Federal and, for individuals who are Colorado
residents, Colorado personal income taxes).
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 1995 calendar year
on Form 1099-DIV which will be mailed by January 31, 1996.
PREMIER STATE MUNICIPAL
BOND FUND, COLORADO SERIES
200 Park Avenue
New York, NY 10166
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. 075/374AR954
Annual Report
PREMIER STATE
MUNICIPAL BOND FUND
COLORADO SERIES
April 30, 1995
(Dreyfus Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
PREMIER STATE MUNICIPAL BOND FUND, COLORADO SERIES CLASS A
SHARES AND CLASS B SHARES
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
|-------------------------------------------------------------
| | | PREMIER STATE | PREMIER STATE |
| | LEHMAN | MUNICIPAL | MUNICIPAL |
| PERIOD | BROTHERS | BOND FUND, | BOND FUND, |
| | MUNICIPAL | COLORADO SERIES | COLORADO SERIES |
| |BOND INDEX * | (CLASS A SHARES) |(CLASS B SHARES) |
|---------|-------------|------------------|-----------------|
| 5/5/94 | 10,000 | 9,549 | 10,000 |
| 7/31/94 | 10,209 | 9,727 | 10,173 |
|10/31/94 | 9,915 | 9,420 | 9,840 |
| 1/31/95 | 10,234 | 9,782 | 10,203 |
| 4/30/95 | 10,665 | 10,098 | 10,221 |
|------------------------------------------------------------|
*Source: Lehman Brothers
