August 15, 1995
PREMIER STATE MUNICIPAL BOND FUND
(ARIZONA SERIES)
(COLORADO SERIES)
(OREGON SERIES)
SUPPLEMENT TO PROSPECTUS DATED AUGUST 14, 1995
At a meeting held on July 19, 1995, the Board of Trustees approved,
subject to approval by the shareholders of each of the Arizona Series, the
Colorado Series and the Oregon Series (each, the "Series") of Premier State
Municipal Bond Fund, an Agreement and Plan of Reorganization providing for
the transfer of all or substantially all of each Series' assets, subject to
liabilities, attributable to its Class A and Class B shares, to Premier
Municipal Bond Fund in a tax free exchange (the "Exchange") for corresponding
Class A and Class B shares of beneficial interest of Premier Municipal Bond
Fund, and the assumption by Premier Municipal Bond Fund of stated
liabilities. Class A and Class B shares of Premier Municipal Bond Fund
received by each Series in the Exchange will be distributed by each Series to
its Class A and Class B shareholders, respectively, in liquidation of the
Series, after which the Series will be terminated as a series of Premier
State Municipal Bond Fund. Thus, each shareholder will receive for his or her
Class A or Class B Series shares a number of corresponding Class A or Class B
shares of Premier Municipal Bond Fund equal to the value of such Series
shares as of the date of the Exchange.
A special meeting of each Series' shareholders to consider the
Reorganization is scheduled to be held on Wednesday, November 15, 1995. A
Proxy Statement/Prospectus with respect to the proposed Reorganization is
expected to be mailed prior thereto to each Series' shareholders of record on
or about September 22, 1995. The Series and Premier Municipal Bond Fund
differ in certain respects. The Proxy Statement/Prospectus describes the
differences between Premier Municipal Bond Fund and the Series, including
differences in their investment objectives, which are briefly described
below.
The investment objective of Premier Municipal Bond Fund is to
maximize current income exempt from Federal income tax to the extent
consistent with the preservation of capital. Premier Municipal Bond Fund does
not invest so as to avoid imposition of State taxes for shareholders of any
particular State. The investment objective of each of the Series is to
maximize current income exempt from Federal income tax and, where applicable,
from State income taxes for residents of the States of Arizona, Colorado and
Oregon, as the case may be, without undue risk.
PSTEBFs081595
