LETTER TO SHAREHOLDERS
Dear Shareholder:
In just a few months' time, the fixed income markets seem to have been
able to erase the poor performance of the previous year. The markets were
roiled during 1994 by fears of a strengthening economy and inflation. The
Federal Reserve Board has responded by raising short-term interest rates
seven times since February of 1994. While only a few weeks ago the consensus
about the economy called for further rate hikes, many pundits now predict the
Fed will lower rates in response to increasing evidence of economic slowing.
Certainly, the financial markets are making it difficult for the Fed to
maintain its current stance in view of the fact that both one- and two-year
Treasury obligations are yielding less than the overnight Federal Funds rate.
Yields on tax exempt securities (as measured by the Bond Buyer 25 Bond
Revenue Bond Index) have fallen by over one-and-a-quarter percent from their
highs of late last year.
Despite the volatility in the markets, municipal bond yields are little
changed from a year ago. This fact is reflected by the change in your
portfolio's net asset value for the 12 months ended April 30, 1995, as each
share rose slightly in value. In addition, Class A shares paid income
dividends of approximately $.810 per share, representing a tax-free
distribution rate per share of 5.32% based on the April 30 closing maximum
offering price, adjusted for capital gain distributions. Class B shares paid
income dividends of approximately $.733 per share, which equates to a
tax-free distribution rate per share of 5.04% based on the April 30 closing
net asset value, adjusted for capital gain distributions. All interest income
distributed was exempt from Federal personal income tax.* Certainly, the
positive returns registered for your Series are encouraging given the state
of the market at our last report to you. These results become more compelling
when the tax-free status of the income dividends are adjusted and compared to
taxable alternatives.
Early in the fiscal year we reduced the duration, and thereby the
volatility, of the portfolio. As part of this adjustment, all derivative
positions were eliminated. We stated in our semi-annual report to
shareholders that "we believe that our actions to build cash reserves and
reduce the Series' exposure to more volatile bonds were generally
successful." This conservative maneuver cushioned the Series' drop in net
asset value as interest rates continued to rise until late in the calendar
year. In that letter we also informed shareholders that we were beginning to
view the municipal market more favorably, and that we were poised to alter
our investment strategy if it became apparent that the economy was slowing
and the Fed was nearing the end of its tightening moves. In view of our
perception of a change in economic fundamentals, and the dearth of municipal
bond issuance, especially in the State of Florida, we began lengthening the
duration of your Series. We accomplished this by purchasing longer maturity
and deeper discount bonds during the second half of the fiscal year. This
boosted your Series' performance as interest rates peaked in November and
then steadily declined through the end of the fiscal year.
Given the large run-up in bond prices over recent weeks, we are again
preparing to lessen the portfolio's duration exposure. The intention of the
recent change in strategy is to protect the gains registered to date.
We believe that the balance of this year will generally be positive for
the municipal bond market. Not only has new bond issuance been curtailed, but
an anticipated surge in demand by individual investors also seems to be
working in the market's favor. This is a result of midyear coupon payments
and investable proceeds from municipal bonds which will either be called or
mature over the next several weeks. As much as $100 billion may be available
from these sources.
In our view, the economic picture at present suggests that inflation
should not be a problem over the near term and that the economy is continuing
to slow. While our outlook remains positive, we also believe it is prudent to
lock in some gains. As has been our strategy for some time, we continue to
place our investable funds in those securities that the marketplace considers
the most liquid, even if doing so necessitates some sacrifice in current yield.
For example, the percentage of insured bonds in the portfolio has been
increased, while some of the higher yielding, but less liquid, credits are
being avoided.
As always, we will continue to manage your Series to provide tax-free
income without undue risk. We 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
May 17, 1995
New York, N.Y.
*Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders. Capital gains may be subject to Federal, State and
local taxes.
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES APRIL 30, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER STATE
MUNICIPAL BOND FUND, FLORIDA SERIES CLASS A SHARES AND THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX
$20,239
Premier State
Municipal Bond Fund,
Florida Series
(Class A Shares)
In Dollars
$19,125
Lehman Brothers Municipal Bond
Index*
*Source: Lehman Brothers
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
CLASS A CLASS B
------------------------------ ------------------------------
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Periods ended 4/30/95 Sales Charge Sales Charge (4.5%) Periods ended 4/30/95 Redemption Redemption*
- ------------ -------- --------- ------------ ------ ----------
<S> <C> <C> <C> <C> <C>
1 Year 6.71% 1.91% 1 Year 6.21% 3.21%
5 Years 8.76 7.76 From Inception (1/15/93) 5.38 4.56
From Inception (5/28/87) 9.94 9.30
</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, Florida 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 Florida municipal securities and its
performance shown in the line 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,
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 Florida 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, FLORIDA SERIES
STATEMENT OF INVESTMENTS APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
_______ _______
<S> <C> <C>
FLORIDA-95.1%
Alachua County Health Facilities Authority, Health Facilities Revenue
(Refunding - Santa Fe Healthcare Facilities Project) 7.60%, 11/15/2013.. $ 3,500,000 $ 3,602,725
Arcadia, Water and Sewer Revenue 7.75%, 12/1/2021........................... 2,215,000 2,339,306
Brevard County Health Facilities Authority, HR
(Holmes Regional Medical Center Project) 5.70%, 10/1/2008............... 4,585,000 4,546,578
Broward County Health Facilities Authority, Revenue, Refunding
(Broward County Nursing Home) 7.50%, 8/15/2020 (LOC; Allied Irish Bank) (a) 1,000,000 1,045,610
Charlotte County, Health Care Facilities Revenue
(Charlotte Community Mental Health Project) 9.25%, 7/1/2020............. 1,650,000 1,827,128
Clay County Housing Finance Authority, SFMR
8.20%, 6/1/2021 (Collateralized; GNMA).................................. 670,000 715,004
Dade County, Aviation Revenue:
6.55% 10/1/2013 (Insured; MBIA)......................................... 4,225,000 4,371,734
(Miami International Airport) 5.75%, 10/1/2015.......................... 2,250,000 2,143,485
Dade County Educational Facilities Authority, Revenue (Saint Thomas
University)
7.65%, 1/1/2014 (LOC; Sun Bank, Prerefunded 1/1/2000) (a,b)............. 2,500,000 2,817,050
Dade County Health Facilities Authority, HR
(South Shore Hospital and Medical Center) 7.60%, 8/1/2024 (Insured; FHA) 2,505,000 2,685,786
Dade County Housing Finance Authority, Revenue, Refunding:
MFMR (Cutler Meadows Apartment) 6.50%, 7/1/2022 (Insured; FHA).......... 1,785,000 1,791,069
SFMR 6.70%, 4/1/2028 (Collateralized: FNMA & GNMA)...................... 4,500,000 4,518,000
Dunes Community Development District, Revenue, Refunding
(Intracoastal Waterway Bridge) 5.50%, 10/1/2007......................... 7,895,000 7,673,308
Duval County Housing Finance Authority, SFMR:
7.85%, 12/1/2022 (Collateralized; GNMA)................................. 2,625,000 2,774,783
7.70%, 9/1/2024 (Collateralized; GNMA).................................. 1,460,000 1,570,303
Escambia County, PCR (Champion International Corp. Project) 5.875%, 6/1/2022 5,000,000 4,487,200
Escambia County Housing Finance Authority, SFMR 7.80%, 4/1/2022............. 1,205,000 1,280,059
Florida Board of Education, Capital Outlay, Refunding 5.125%, 6/1/2018...... 4,450,000 3,916,044
Florida Housing Finance Agency:
(Brittany Rosemont Apartments) 7%, 2/1/2035............................. 6,000,000 6,139,080
Multi-Family Housing (Driftwood Terrace Project)
7.65%, 12/20/2031 (Collateralized; GNMA).............................. 3,440,000 3,642,685
Single Family Mortgage, Refunding 6.65%, 1/1/2024....................... 3,500,000 3,533,495
Florida Municipal Power Agency, Revenue (All Requirements Power Supply
Project)
5.10%, 10/1/2025 (Insured; AMBAC)....................................... 6,000,000 5,203,740
Florida Turnpike Authority, Turnpike Revenue:
7.50%, 7/1/2019 (Prerefunded 7/1/1999) (b).............................. 5,685,000 6,342,982
(Refunding - Department of Transportation) 5%, 7/1/2019................. 3,000,000 2,592,090
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
- ------------------------------------------------------------------------- ------- -------
FLORIDA (CONTINUED)
Greater Orlando Aviation Authority, Airport Facilities Revenue, Refunding
5.50%, 10/1/2008 (Insured; AMBAC)....................................... $ 5,940,000 $ 5,823,814
5.50%, 10/1/2013 (Insured; AMBAC)....................................... 4,750,000 4,497,205
Highlands County Health Facilities Authority, Revenue (Adventist Sunbelt
Hospital)
7%, 11/15/2014.......................................................... 1,500,000 1,604,985
Hillsborough County, Utility Revenue, Refunding:
6.625%, 8/1/2011........................................................ 4,000,000 4,110,680
7%, 8/1/2014............................................................ 4,765,000 4,995,292
Hillsborough County Aviation Authority, Revenue, Refunding:
(Delta Airlines):
6.80%, 1/1/2024....................................................... 2,500,000 2,476,325
7.75%, 1/1/2024....................................................... 1,500,000 1,565,130
(Tampa International Airport) 5.375%, 10/1/2023 (Insured; FGIC)......... 5,750,000 5,140,500
Hillsborough County Port District, Revenue (Tampa Port Authority)
8.25%, 6/1/2009 (Prerefunded 12/1/2000) (b)............................. 3,000,000 3,375,270
Indian Trace Community Development District,
Water and Sewer Revenue 8.50%, 4/1/1997................................. 340,000 361,624
Jackson County, PCR, Refunding (Gulf Power Co. Project) 6.75%, 3/1/2022..... 3,930,000 4,051,044
Jacksonville, Capital Improvement Revenue Certificates (Gator Bowl Project)
5.50%, 10/1/2019 (Insured; AMBAC)....................................... 2,225,000 2,075,124
Jacksonville Electric Authority, Revenue, Refunding (Bulk Power - Scherer 4
Project)
5.25%, 10/1/2021........................................................ 1,250,000 1,103,913
Jacksonville Health Facilities Authority, HR, Refunding (Saint Luke's
Hospital)
7.125%, 11/15/2020...................................................... 6,700,000 7,170,273
Lake County, Resource Recovery IDR, Refunding (NRG/Recovery Group)
5.85%, 10/1/2009........................................................ 6,000,000 5,616,780
Leesburg, HR, Refunding:
(Leesburg Regional Medical Center Project - A):
6.25%, 7/1/2009....................................................... 1,850,000 1,794,056
6.125%, 7/1/2012...................................................... 5,000,000 4,733,000
(Leesburg Regional Medical Center Project - B) 5.65%, 7/1/2008.......... 4,000,000 3,691,720
Leon County Educational Facilities Authority, COP (Southgate Residence Hall
Project):
3.75%, 12/1/1995........................................................ 259,200 25,920
9%, 9/1/2014 (c)........................................................ 5,235,000 523,500
Miami Beach Redevelopment Agency, Tax Increment Revenue
(City Center - Historic Convention Village) 5.625%, 12/1/2009........... 2,000,000 1,884,980
Nassau County, PCR, Refunding (ITT Rayonier, Inc. Project):
7.65%, 6/1/2006......................................................... 4,500,000 4,696,965
6.20%, 7/1/2015......................................................... 1,420,000 1,369,235
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------- -------
FLORIDA (CONTINUED)
North Miami, Educational Facilities Revenue (Johnson & Whales University
Project)
6.10%, 4/1/2013......................................................... $ 5,000,000 $ 4,978,150
North Miami Health Facilities Authority, Health Facilities Revenue
(Villa Maria Nursing Housing Project) 7.50%, 9/1/2012................... 2,735,000 2,924,125
Orange County, Sales Tax Revenue 5.375%, 1/1/2024........................... 4,425,000 3,976,039
Orange County Health Facilities Authority, Health Facilities Revenue
(Mental Health Service Project) 9.25%, 7/1/2020......................... 3,815,000 4,052,255
Orlando and Orange County Expressway Authority, Expressway Revenue, Refunding
(Junior Lien):
5.125%, 7/1/2020 (Insured; FGIC)...................................... 5,120,000 4,493,363
5.95%, 7/1/2023....................................................... 2,500,000 2,407,325
Orlando Utilities Commission, Water and Electric Revenue:
5.125%, 10/1/2019....................................................... 3,220,000 2,814,570
5.25%, 10/1/2023........................................................ 3,000,000 2,639,280
5.50%, 10/1/2026........................................................ 12,440,000 11,320,400
5.50%, 10/1/2027........................................................ 4,000,000 3,636,320
Refunding 5%, 10/1/2020................................................. 4,900,000 4,179,896
Osceola County Industrial Development Authority, Revenue
(Community Provider Pooled Loan Program) 7.75%, 7/1/2017................ 5,235,000 5,555,696
Palm Beach County, Solid Waste Industrial Development Revenue:
(Okeelanta Power LP Project) 6.85%, 2/15/2021........................... 11,000,000 10,463,530
(Osceola Power LP) 6.85%, 1/1/2014...................................... 4,300,000 4,219,590
Palm Beach County Housing Finance Authority, Single Family Mortgage,
Purchase Revenue 6.55%, 4/1/2027........................................ 2,750,000 2,735,205
Pinellas County, PCR, Refunding (Florida Power Corp.) 7.20%, 12/1/2014...... 3,000,000 3,178,590
Pinellas County Housing Finance Authority, SFMR:
7.70%, 8/1/2022......................................................... 2,810,000 2,996,584
(Multi-County Program) 6.70%, 2/1/2028 (Insured; FHA)................... 5,000,000 5,043,800
Saint Lucie County:
Sales Tax Revenue, Refunding 5%, 10/1/2019.............................. 2,500,000 2,158,625
SWDR (Florida Power and Light Co. Project) 7.15%, 2/1/2023.............. 4,000,000 4,190,600
Sunrise, Special Tax District Number 1, Refunding
6.375%, 11/1/2021 (LOC; Bayerische Hypotheken-und Weschel Bank) (a)..... 2,500,000 2,571,775
Tampa, Water and Sewer Revenue, Refunding
6.60%, 10/1/2014 (Insured; FGIC, Prerefunded 10/1/2002) (b)............. 10,000,000 10,998,800
Volushia County Health Facilities Authority, Hospital Facilities Revenue
(Memorial Health System Project):
8.125%, 6/1/2008 (Prerefunded 6/1/2000) (b)........................... 1,970,000 2,280,019
8.25%, 6/1/2020 (Prerefunded 6/1/2000) (b)............................ 2,500,000 2,907,325
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------- -------
U.S. RELATED_4.9%
Guam Airport Authority, Revenue 6.70%, 10/1/2023............................ $ 5,000,000 $ 5,063,200
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport
Project)
8.10%, 10/1/2005........................................................ 2,500,000 2,719,675
Virgin Islands Public Finance Authority, Revenue, Refunding 7.25%, 10/1/2018 5,400,000 5,581,818
------------
TOTAL INVESTMENTS (cost $267,814,810)....................................... $274,333,134
============
</TABLE>
<TABLE>
<CAPTION>
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 Insurance Corporation
FHA Federal Housing Administration MFMR Multi-Family Mortgage Revenue
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
GNMA Government National Mortgage Association SFMR Single Family Mortgage Revenue
HR Hospital Revenue SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
____ ____ _________ __________
<S> <C> <S> <C>
AAA Aaa AAA 34.3%
AA Aa AA 15.4
A A A 13.3
BBB Baa BBB 21.8
BB Ba BB 1.5
Not Rated (e) Not Rated (e) Not Rated (e) 13.7
------
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 excrow 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 payment in default. The
valuation of these securities has been determined in good faith under the
direction of the Board of Trustees.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) Securities which, while not rated by Fitch, Moody's or Standard &
Poors, have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $267,814,810)-see statement..................................... $274,333,134
Interest receivable..................................................... 4,216,905
Receivable for shares of Beneficial Interest subscribed................. 180,323
Prepaid expenses........................................................ 7,731
-----------
278,738,093
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $126,390
Due to Distributor...................................................... 68,248
Due to Custodian........................................................ 58,657
Payable for shares of Beneficial Interest redeemed...................... 732,097
Accrued expenses........................................................ 64,610 1,050,002
-------- ------------
NET ASSETS ................................................................ $277,688,091
============
Paid-in capital......................................................... $268,303,949
Accumulated undistributed net realized gain on investments.............. 2,865,818
Accumulated net unrealized appreciation on investments-Note 3(b)........ 6,518,324
------------
NET ASSETS at value......................................................... $277,688,091
============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 17,390,524
==========
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 1,742,539
=========
NET ASSET VALUE per share:
Class A Shares
($252,406,357 / 17,390,524 shares).................................... $14.51
======
Class B Shares
($25,281,734 / 1,742,539 shares)...................................... $14.51
======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES
STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $19,094,594
EXPENSES:
Management fee-Note 2(a).............................................. $1,599,553
Shareholder servicing costs-Note 2(c)................................. 911,108
Distribution fees (Class B shares)-Note 2(b).......................... 118,848
Professional fees..................................................... 39,749
Custodian fees........................................................ 32,107
Prospectus and shareholders' reports.................................. 23,243
Trustees' fees and expenses-Note 2(d)................................. 3,592
Registration fees..................................................... 2,406
Miscellaneous......................................................... 22,740
---------
2,753,346
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 27,718
---------
TOTAL EXPENSES.................................................. 2,725,628
----------
INVESTMENT INCOME-NET........................................... 16,368,966
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3(a).............................. $4,399,552
Net realized gain on financial futures-Note 3(a)........................ 11,431
----------
NET REALIZED GAIN..................................................... 4,410,983
Net unrealized (depreciation) on investments............................ (2,782,324)
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 1,628,659
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $17,997,625
===========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED APRIL 30,
-------------------
1994 1995
------- -------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 18,361,672 $ 16,368,966
Net realized gain on investments........................................ 322,634 4,410,983
Net unrealized (depreciation) on investments for the year............... (12,210,827) (2,782,324)
----------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 6,473,479 17,997,625
---------- ----------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net:
Class A shares........................................................ (17,572,099) (15,149,356)
Class B shares........................................................ (789,573) (1,219,610)
From net realized gain on investments:
Class A shares........................................................ (884,752) (716,166)
Class B shares........................................................ (51,557) (65,057)
In excess of net realized gain on investments:
Class A shares........................................................ (721,877) --
Class B shares........................................................ (42,065) --
---------- ----------
TOTAL DIVIDENDS................................................... (20,061,923) (17,150,189)
---------- ----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 43,755,340 12,537,474
Class B shares........................................................ 18,173,895 5,009,096
Dividends reinvested:
Class A shares........................................................ 6,943,770 5,971,345
Class B shares........................................................ 401,953 509,461
Cost of shares redeemed:
Class A shares........................................................ (48,253,346) (56,564,392)
Class B shares........................................................ (856,937) (2,889,736)
---------- -----------
Increase (Decrease) In Net Assets From
Beneficial Interest Transactions................................ 20,164,675 (35,426,752)
---------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... 6,576,231 (34,579,316)
NET ASSETS:
Beginning of year....................................................... 305,691,176 312,267,407
------------ ------------
End of year............................................................. $312,267,407 $277,688,091
============ ============
</TABLE>
<TABLE>
<CAPTION>
SHARES
------------------------------------
CLASS A CLASS B
________________ ________________
YEAR ENDED APRIL 30, YEAR ENDED APRIL 30,
________________ ________________
1994 1995 1994 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 2,866,976 877,487 1,194,240 350,773
Shares issued for dividends reinvested. 457,470 419,064 26,554 35,744
Shares redeemed........................ (3,200,998) (3,988,619) (56,660) (202,194)
_______ _______ _______ _______
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING.......... 123,448 (2,692,068) 1,164,134 184,323
======= ======== ======== ========
See 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
year indicated. This information has been derived from the Series'
financial statements.
CLASS A SHARES CLASS B SHARES
---------------------------------------- ------------------------
YEAR ENDED APRIL 30, YEAR ENDED APRIL 30,
---------------------------------------- ------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995 1993(1) 1994 1995
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $13.34 $13.93 $14.33 $15.02 $14.43 $14.59 $15.01 $14.42
---- ---- ---- ---- ---- ---- ---- ----
INVESTMENT OPERATIONS:
Investment income-net............ .99 .95 .92 .85 .81 .24 .77 .73
Net realized and unrealized gain (loss)
on investments................ .61 .41 .86 (.51) .12 .42 (.51) .13
---- ---- ---- ---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS 1.60 1.36 1.78 .34 .93 .66 .26 .86
---- ---- ---- ---- ---- ---- ---- ----
DISTRIBUTIONS:
Dividends from investment income-net (.99) (.95) (.92) (.85) (.81) (.24) (.77) (.73)
Dividends from net realized gain
on investments................. (.02) (.01) (.17) (.04) (.04) -- (.04) (.04)
Dividends in excess of net realized gain
on investments................. -- -- -- (.04) -- -- (.04) --
---- ---- ---- ---- ---- ---- ---- ----
TOTAL DISTRIBUTIONS............ (1.01) (.96) (1.09) (.93) (.85) (.24) (.85) (.77)
---- ---- ---- ---- ---- ---- ---- ----
Net asset value, end of year..... $13.93 $14.33 $15.02 $14.43 $14.5 $15.01 $14.42 $14.51
==== ==== ==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN (2).......... 12.40% 10.09% 12.84% 2.14% 6.71% 15.60%(3) 1.54% 6.21%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .21% .52% .69% .80% .90% 1.12%(3) 1.34% 1.41%
Ratio of net investment income to
average net assets............. 7.11% 6.65% 6.21% 5.61% 5.67% 4.87%(3) 4.91% 5.13%
Decrease reflected in above expense
ratios due to undertakings
by the Manager................. .74% .41% .21% .10% .01% .12%(3) .09% .01%
Portfolio Turnover Rate.......... .28% 20.99% 33.18% 20.84% 50.62% 33.18% 20.84% 50.62%
Net Assets, end of year (000's Omitted) $177,927 $245,474 $299,775 $289,791 $252,406 $5,916 $22,476 $25,282
(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.
</TABLE>
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA 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 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 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 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 discount 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.
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
(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 year ended April 30, 1995.
Dreyfus Service Corporation retained $10,581 during the year ended April
30, 1995 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, 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
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 year ended April 30, 1995, $82,256 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.
(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
April 30, 1995, $443,562 and $41,128 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. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities
amounted to $254,116,519 and $288,649,689, respectively, for the year ended
April 30, 1995, 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 April 30, 1995, there were no financial futures
contracts outstanding.
(B) At April 30, 1995, accumulated net unrealized appreciation on
investments was $6,518,324, consisting of $12,641,304 gross unrealized
appreciation and $6,122,980 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, FLORIDA SERIES
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES
We have audited 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 April 30, 1995, 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 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 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, 1995 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, Florida Series at April 30,
1995, 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 and Young LLP signature logo]
New York, New York
June 6, 1995
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Series hereby makes the following
designations regarding its fiscal year ended April 30, 1995:
-all the dividends paid from investment income_net are "exempt -interest
dividends" (not subject to regular Federal income tax and, for individuals
who are Florida residents, not subject to taxation by Florida), and
-the Series hereby designates $.0391 per share as a long-term capital
gain distribution paid on December 7, 1994.
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.
[Dreyfus lion "d" logo]
PREMIER STATE MUNICIPAL
BOND FUND, FLORIDA 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. 051/615AR954
[Dreyfus logo]
Annual Report
Premier State
Municipal Bond Fund
Florida Series
April 30, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN PREMIER STATE MUNICIPAL BOND FUND, FLORIDA SERIES
CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX
EXHIBIT A:
___________________________________________________
| | | |
| | | PREMIER STATE |
| PERIOD | LEHMAN BROTHERS |MUNICIPAL BOND FUND,|
| | MUNICIPAL | FLORIDA SERIES |
| | BOND INDEX * | (CLASS A SHARES) |
|-----------|-----------------|--------------------|
| 5/28/87 | 10,000 | 9,547 |
| 4/30/88 | 10,929 | 10,974 |
| 4/30/89 | 11,905 | 12,435 |
| 4/30/90 | 12,763 | 13,285 |
| 4/30/91 | 14,229 | 14,932 |
| 4/30/92 | 15,582 | 16,437 |
| 4/30/93 | 17,553 | 18,549 |
| 4/30/94 | 17,932 | 18,945 |
| 4/30/95 | 19,125 | 20,239 |
|--------------------------------------------------|
* Source: Lehman Brothers
