<PAGE>
Semi-Annual Report
------------------------------------------------
PREMIER STATE
------------------------------------------------
MUNICIPAL BOND FUND
------------------------------------------------
------------------------------------------------
PENNSYLVANIA SERIES
------------------------------------------------
October 31, 1994
[LOGO]
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS OCTOBER 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
LONG-TERM MUNICIPAL INVESTMENTS--97.6% PRINCIPAL
- ------------------------------------------------------------------------- AMOUNT VALUE
------------ ------------
<S> <C> <C>
PENNSYLVANIA--89.9%
- -------------------------------------------------------------------------
Allegheny County, Airport Revenue, Refunding
(Pittsburgh International Airport):
5.60%, 1/1/2007 (Insured; MBIA)...................................... $ 2,430,000 $ 2,271,029
5.75%, 1/1/2008 (Insured; FSA)....................................... 2,005,000 1,874,775
Allegheny County Hospital Development Authority, Revenue, Refunding
6.819%, 10/1/2020 (a,b)................................................ 3,000,000 2,092,500
Allegheny County Industrial Development Authority, Revenue:
Commercial Development, Refunding
(Kaufmann Medical Office Building) 6.80%, 3/1/2015 (Insured; FHA).... 3,500,000 3,518,725
Medical Center, Refunding (Presbyterian Medical Center of
Oakmont Pennsylvania, Inc.) 6.75%, 2/1/2026 (Insured; FHA)........... 2,000,000 1,876,460
Specialized Enterprise
(Baldwin Health Center) 8.35%, 2/1/2016 (Insured; FHA)............... 4,670,000 4,968,180
Allegheny County Residential Finance Authority, SFMR:
7.40%, 12/1/2022....................................................... 1,945,000 1,961,980
7.95%, 6/1/2023........................................................ 1,300,000 1,330,108
Allentown, Refunding 5.65%, 7/15/2010 (Insured; AMBAC)................... 1,000,000 917,000
Beaver County Industrial Development Authority, PCR, Refunding
(Ohio Edison Project) 7.75%,9/1/2024................................... 3,150,000 3,209,472
(Pennsylvania Power Company Mansfield Project) 7.15%, 9/1/2021......... 3,000,000 2,912,610
Berks County:
Zero Coupon, 5/15/2013 (Insured: FGIC)................................. 3,105,000 889,179
Zero Coupon, 5/15/2014 (Insured; FGIC)................................. 3,345,000 890,372
Berks County Municipal Authority:
Revenue (Phoebe Berks Village, Inc. Project) 8.25%, 5/15/2022.......... 2,445,000 2,447,665
HR (Reading Hospital Medical Center Project) 5.50%, 10/1/2008 (Insured;
MBIA).................................................................. 3,500,000 3,212,405
Bethlehem Authority, Water Revenue, Refunding
5.20%, 11/15/2021 (Insured; MBIA)...................................... 9,000,000 7,159,500
Blair County Hospital Authority, Revenue (Altoona Hospital Project)
6.375%, 7/1/2013 (Insured; AMBAC)...................................... 5,000,000 4,864,000
Butler County Hospital Authority, Revenue, Refunding:
Health Center (Saint Francis Health Care Project) 6%, 5/1/2008......... 1,860,000 1,782,066
Hospital (Butler Memorial Hospital) 8%, 7/1/2016....................... 2,000,000 2,122,480
Cambria County Hospital Development Authority, HR, Refunding
(Conemaugh Valley Hospital) 6.375% 7/1/2018............................ 3,100,000 2,904,266
Cambria County Industrial Development Authority, RRR
(Cambria Cogen Project):
7.75%, 9/1/2019, Series F-1 (LOC; Fuji Bank) (c)..................... 1,750,000 1,804,425
7.75%, 9/1/2019, Series F-2 (LOC; Fuji Bank) (c)..................... 2,750,000 2,878,810
Delaware County Authority, Revenue (Elwyn Inc. Project) 8.35%,
6/1/2015................................................................. 4,300,000 4,618,501
Delaware County Industrial Development Authority, PCR
(Philadelphia Electricity Co. Project) 7.375%, 4/1/2021................ 2,000,000 2,004,140
</TABLE>
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED)
<TABLE>
Long-Term Municipal Investment (continued)
Pennsylvania (continued)
Principal
Amount Value
------------- ------------
<S> <C> <C>
Doylestown Hospital Authority, HR, Refunding
5.20%, 7/1/2008 (Insured; AMBAC)....................................... $ 2,255,000 $ 1,993,803
Erie Higher Educational Building Authority, College Revenue
(Mercyhurst College Project) 7.85%, 9/15/2019.......................... 1,000,000 1,104,990
Greene County General Facilities Authority, LR 7%, 7/1/2011.............. 3,000,000 3,237,360
Lancaster County Hospital Authority, Revenue
(Health Center - United Church Homes Project) 9.125%, 10/1/2014........ 1,500,000 1,643,070
Lancaster County Solid Waste Management Authority,
Resource Recovery System Revenue 8.50%, 12/15/2010..................... 1,145,000 1,144,805
Langhorne Manor Borough Higher Educational and Health Authority, HR
(Lower Bucks Hospital) 7%, 7/1/2005.................................... 2,375,000 2,346,262
Lehigh County General Purpose Authority, Revenue (Wiley House):
8.75%, 11/1/2014 (LOC; Northeastern Bank of Pennsylvania) (c).......... 3,785,000 3,595,750
9.50%, 11/1/2016....................................................... 2,000,000 1,960,000
Luzerne County Indusrtial Development Authority, Exempt Facilities
Revenue,
Refunding (Pennsylvania Gas and Water Company Project)
7.125%, 12/1/2022...................................................... 4,000,000 3,847,480
Montgomery County Higher Educational and Health Authority, Revenue:
First Mortgage (Montgomery Income Project) 10.50%, 9/1/2020............ 3,000,000 3,155,340
(Northwestern Corporation) 8.375%, 6/1/2009............................ 2,685,000 2,788,802
Montgomery County Industrial Development Authority,
PCR, Refunding (Philadelphia Electricity Company) 7.60%, 4/1/2021...... 3,250,000 3,273,693
RRR 7.50%, 1/1/2012 (LOC; Banque Paribas) (c).......................... 5,000,000 5,123,650
Northampton County Industrial Development Authority, Refunding, Revenue:
(Moravian Hall Square Project) 7.45%, 6/1/2014 (LOC; Meridian Bank)(c). 1,800,000 1,847,700
Pollution Control (Bethlehem Steel) 7.55%, 6/1/2017.................... 3,000,000 2,930,400
Pennsylvania 5.25%, 6/15/2012............................................ 5,000,000 4,210,650
Pennsylvania Convention Center Authority, Revenue:
Refunding 6.60%, 9/1/2009.............................................. 5,000,000 4,741,650
6.70%, 9/1/2016 (Insured; FGIC)........................................ 4,000,000 4,139,640
Pennsylvania Economic Development Financing Authority, RRR
(Northampton Generating Project):
6.40%, 1/1/2009...................................................... 2,500,000 2,255,600
6.50%, 1/1/2013...................................................... 6,500,000 5,768,685
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue:
7.05%, 10/1/2016 (Insured; AMBAC)...................................... 2,500,000 2,521,150
7.15%, 9/1/2021........................................................ 3,030,000 3,075,056
Pennsylvania Higher Educational Facilities Authority, Revenue:
Refunding (Drexel University) 6.375%, 5/1/2017......................... 3,750,000 3,435,412
(Thomas Jefferson University):
7.30%, 7/1/2015...................................................... 1,500,000 1,641,480
6%, 7/1/2019......................................................... 3,555,000 3,232,455
</TABLE>
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED)
<TABLE>
Long-Term Municipal Investment (continued)
Pennsylvania (continued)
Principal
Amount Value
------------- ------------
<S> <C> <C>
Pennsylvania Housing Finance Agency:
8.059%, 4/1/2025 (a)................................................. $ 3,000,000 $ 2,306,250
Single Family Mortgage:
6.90%, 4/1/2017...................................................... 2,250,000 2,257,515
7.875%, 10/1/2020.................................................... 1,435,000 1,499,589
8.15%, 10/1/2021..................................................... 1,475,000 1,551,936
7.65%, 10/1/2023..................................................... 4,780,000 4,875,935
7%, 4/1/2024......................................................... 2,000,000 1,987,480
8.15%, 4/1/2024...................................................... 1,015,000 1,045,044
6.90%, 4/1/2025...................................................... 6,250,000 6,109,688
Pennsylvania Industrial Development Authority, Economic Development
Revenue
7%, 1/1/2011........................................................... 4,000,000 4,351,240
Pennsylvania Infrastructure Investment Authority, Revenue
(Pennvest Pool Loan Program) 6.80%, 9/1/2010........................... 2,500,000 2,541,100
Pennsylvania Intergovernmental Cooperative Authority,
Special Tax Revenue, Refunding:
5%, 6/15/2013 (Insured; MBIA)........................................ 2,000,000 1,621,000
5%, 6/15/2022 (Insured; MBIA)........................................ 8,000,000 6,150,720
Pennsylvania University, Refunding:
7%, 7/1/2016........................................................... 3,000,000 3,280,710
5.50%, 8/15/2016....................................................... 2,000,000 1,708,480
Philadelphia, Revenue:
Gas Works:
6.375%, 7/1/2014..................................................... 4,345,000 4,021,906
7.70%, 6/15/2021..................................................... 2,000,000 2,254,320
Water and Sewer
7.35%, 9/1/2004...................................................... 2,610,000 2,860,403
Water and Wastewater, Refunding:
5.625%, 6/15/2008 (Insured; FSA)..................................... 5,000,000 4,629,350
5.25%, 6/15/2023 (Insured; MBIA)..................................... 7,405,000 5,903,044
Philadelphia Hospital and Higher Education Facilities Authority:
HR:
(Albert Einstein Medical Center) 7%, 10/1/2021....................... 1,500,000 1,447,170
(Graduate Health System Obligation) 7.25%, 7/1/2018.................. 5,250,000 5,059,898
Refunding (Children's Hospital Philadelphia), 5%, 2/15/2021.......... 3,805,000 2,902,987
Revenue:
(Northwestern Corporation) 8.375%, 6/1/2009.......................... 1,885,000 1,956,762
Refunding (Philadelphia MR Project) 5.875%, 8/1/2007................. 4,620,000 4,210,345
Philadelphia Industrial Development Authority, IDR, Refunding
(Ashland Oil Inc. Project) 5.70%, 6/1/2005............................. 2,500,000 2,366,250
Philadelphia Municipal Authority, Revenue:
Justice Lease 7.10%, 11/15/2011 (Insured; FGIC)........................ 1,500,000 1,649,700
Lease, Refunding 5.60%, 11/15/2009 (Insured; FGIC)..................... 2,100,000 1,920,261
Pittsburgh School District, Refunding 5.50%, 9/1/2013 (Insured; FGIC).... 3,000,000 2,658,660
</TABLE>
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED)
<TABLE>
Long-Term Municipal Investment (continued)
Pennsylvania (continued)
Principal
Amount Value
------------- ------------
<S> <C> <C>
Pittsburgh Urban Redevelopment Authority:
Mortgage Revenue 7.05%, 4/1/2023....................................... $ 1,800,000 $ 1,782,396
Single Family Mortgage 7.40%, 4/1/2024................................. 885,000 881,761
Ridley Park Hospital Authority, Revenue (Taylor Hospital) 8.625%,
12/1/2020................................................................ 3,185,000 3,741,069
Schuylkill County Industrial Development Authority, Refunding
First Mortgage Revenue (Valley Health Concerns) 8.75%, 3/1/2012........ 1,000,000 1,048,810
RRR (Schuylkill Energy Resources Inc.) 6.50%, 1/1/2010................. 6,200,000 5,677,650
Scranton - Lackawanna Health and Welfare Authority, Revenue
(University of Scranton Project):
7.25%, 6/15/2005..................................................... 1,310,000 1,439,048
7.50%, 6/15/2006..................................................... 3,400,000 3,778,964
Sewickley Valley Hospital Authority, Revenue
(Allegheny County-Sewickley Valley Hospital Project):
7.50%, 10/1/2014..................................................... 850,000 934,558
7.375%, 10/1/2016.................................................... 1,500,000 1,641,240
Washington County Industrial Development Authority, Revenue, Refunding
(Presbyterian Medical Center) 6.75%, 1/15/2023 (Insured; FHA).......... 3,000,000 2,947,020
York County Hospital Authority, Revenue
(Health Center - Village at Sprenkle Drive) 7.75%, 4/1/2022............ 1,205,000 1,257,405
U.S. RELATED--7.7%
- -------------------------------------------------------------------------
Guam Airport Authority, Revenue 6.70%, 10/1/2023......................... 4,500,000 4,263,615
Guam Government 5.375%, 11/15/2013....................................... 4,000,000 3,258,400
Puerto Rico Highway and Transportation Authority,
Highway Revenue:
6.82%, 7/1/2006 (a).................................................. 5,000,000 4,106,250
5.25%, 7/1/2020...................................................... 6,600,000 5,257,824
Puerto Rico Public Buildings Authority, Guaranteed Public Education and
Health Facilities, Refunding 5.70%, 7/1/2009............................. 5,000,000 4,567,550
------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $278,490,548)................ $271,236,834
------------
------------
SHORT-TERM MUNICIPAL INVESTMENTS--2.4%
- -------------------------------------------------------------------------
PENNSYLVANIA:
- -------------------------------------------------------------------------
Allegheny County Hospital Development Authority, Revenue, VRDN:
(Presbyterian Health Center) 3.45% (Insured; MBIA) (d)................. $ 1,000,000 $ 1,000,000
(Presbyterian University Hospital) 3.45% (d)........................... 800,000 800,000
Schuylkill County Industrial Development Authority, RRR, VRDN
(Northeastern Power Co. Project) 3.60%(d).............................. 5,000,000 5,000,000
------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $6,800,000)................. $ 6,800,000
------------
------------
TOTAL INVESTMENTS--100.0% (cost $285,290,548)............................ $278,036,834
------------
------------
</TABLE>
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- --------------------------------------------------------------------------------
SUMMARY OF ABBREVIATIONS
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Insurance Assurance
FHA Federal Housing Administration PCR Pollution Control Revenue
FSA Financial Security Assurance RRR Resource Recovery Revenue
HR Hospital Revenue SFMR Single Family Mortgage Revenue
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ------------- --------------------- ------------------ ----------
<C> <C> <C> <C>
AAA Aaa AAA 28.5%
AA Aa AA 15.4
A A A 14.9
BBB Baa BBB 22.6
BB Ba BB 1.7
F1 MIG1/P1 SP1/A1 2.5
Not Rated(f) Not Rated(f) Not Rated(f) 14.4
------
100.0%
------
------
<FN>
NOTES TO STATEMENT OF INVESTMENTS:
- --------------------------------------------------------------------------------
(a) Inverse floater security - the interest rate is subject to change
periodically.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
1994 this security amounted to $2,092,500 or .7% of net assets.
(c) Secured by letters of credit.
(d) 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.
(e) Fitch currently provides creditworthiness information for a limited number
of investments.
(f) 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.
(g) At October 31, 1994, the Series had $74,470,987 (26.3% of net assets)
invested in securities whose payment of principal and interest is dependent
upon revenue generated from health care projects.
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- --------------------------------------------------------------------------------
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $285,290,548)--see statement........................................ $278,036,834
Interest receivable......................................................... 5,470,492
Receivable for shares of Beneficial Interest subscribed..................... 338,233
Prepaid expenses............................................................ 12,211
------------
283,857,770
LIABILITIES:
Due to The Dreyfus Corporation.............................................. $ 134,391
Due to the Distributor...................................................... 88,736
Payable for shares of Beneficial Interest redeemed.......................... 595,537
Accrued expenses and other liabilities...................................... 357,045 1,175,709
---------- ------------
NET ASSETS.................................................................... $282,682,061
------------
------------
REPRESENTED BY:
Paid-in capital............................................................. $290,515,184
Accumulated net realized capital losses and distributions
in excess of net realized gain on investments............................. (579,409)
Accumulated net unrealized (depreciation) on investments--Note 3............ (7,253,714)
------------
NET ASSETS at value........................................................... $282,682,061
------------
------------
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)................... 14,220,032
------------
------------
Class B Shares
(unlimited number of $.001 par value shares authorized)................... 4,194,117
------------
------------
NET ASSET VALUE per share:
Class A Shares
($218,309,957 / 14,220,032 shares)........................................ $15.35
------
------
Class B Shares
($64,372,104 / 4,194,117 shares).......................................... $15.35
------
------
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- --------------------------------------------------------------------------------
<TABLE>
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME............................................................ $ 9,865,129
EXPENSES:
Management fee--Note 2(a)................................................ $ 819,350
Shareholder servicing costs--Note 2(c)................................... 503,174
Distribution fees (Class B shares)--Note 2(b)............................ 160,059
Professional fees........................................................ 22,263
Prospectus and shareholders' reports..................................... 17,448
Custodian fees........................................................... 16,301
Registration fees........................................................ 4,309
Trustees' fees and expenses--Note 2(d)................................... 1,302
Miscellaneous............................................................ 12,079
-----------
1,556,285
Less--reduction in management fee due to
undertakings--Note 2(a)................................................ 26,631
-----------
TOTAL EXPENSES....................................................... 1,529,654
------------
INVESTMENT INCOME--NET............................................... 8,335,475
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments--Note 3................................... $ 147,747
Net unrealized (depreciation) on investments............................... (12,373,361)
-----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS.................... (12,225,614)
------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $ (3,890,139)
------------
------------
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SIX MONTHS ENDED
APRIL 30, OCTOBER 31, 1994
1994 (UNAUDITED)
------------ ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 15,490,843 $ 8,335,475
Net realized gain (loss) on investments............................... (638,867) 147,747
Net unrealized (depreciation) on investments for the period........... (11,269,771) (12,373,361)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS... 3,582,205 (3,890,139)
------------ ------------
DIVIDENDS TO SHAREHOLDERS:
From investment income--net:
Class A shares...................................................... (13,483,408) (6,685,833)
Class B shares...................................................... (2,007,435) (1,649,642)
From net realized gain on investments:
Class A shares...................................................... (420,030) --
Class B shares...................................................... (79,933) --
In excess of net realized gain on investments:
Class A shares...................................................... (74,174) --
Class B shares...................................................... (14,115) --
------------ ------------
TOTAL DIVIDENDS................................................... (16,079,095) (8,335,475)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares...................................................... 41,975,312 8,000,156
Class B shares...................................................... 47,612,555 9,050,549
Dividends reinvested:
Class A shares...................................................... 7,051,281 3,430,212
Class B shares...................................................... 1,277,978 990,360
Cost of shares redeemed:
Class A shares...................................................... (24,912,768) (19,274,253)
Class B shares...................................................... (1,382,027) (1,965,737)
------------ ------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS...... 71,622,331 231,287
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... 59,125,441 (11,994,327)
NET ASSETS:
Beginning of period................................................... 235,550,947 294,676,388
------------ ------------
End of period......................................................... $294,676,388 $282,682,061
------------ ------------
------------ ------------
</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........................... 2,482,244 500,155 2,815,030 566,326
Shares issued for dividends
reinvested............................ 418,362 215,895 76,056 62,361
Shares redeemed....................... (1,489,929) (1,209,883) (83,242) (123,621)
---------- ----------- --------- --------
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING..................... 1,410,677 (493,833) 2,807,844 505,066
---------- ----------- --------- --------
---------- ----------- --------- --------
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA 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.
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
--------------------------------------------------------------------- ------------------------------------
YEAR ENDED
YEAR ENDED APRIL 30, SIX MONTHS ENDED APRIL 30, SIX MONTHS ENDED
-------------------------------------------------- OCTOBER 31, 1994 ----------------- OCTOBER 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........ $14.78 $14.68 $15.21 $15.73 $16.61 $16.01 $16.10 $16.60 $16.01
------ ------ ------ ------ ------ ------- ------ ------ -------
INVESTMENT
OPERATIONS:
Investment
income--net..... 1.13 1.12 1.06 1.02 .95 .46 .26 .85 .42
Net realized and
unrealized
gain (loss) on
investments... (.08) .55 .56 .99 (.57) (.66) .50 (.56) (.66)
------ ------ ------ ------ ------ ------- ------ ------ -------
TOTAL FROM
INVESTMENT
OPERATIONS... 1.05 1.67 1.62 2.01 .38 (.20) .76 .29 (.24)
------ ------ ------ ------ ------ ------- ------ ------ -------
DISTRIBUTIONS:
Dividends from
investment
income--net... (1.13) (1.12) (1.06) (1.02) (.95) (.46) (.26) (.85) (.42)
Dividends from
net realized
gain on
investments... (.02) (.02) (.04) (.11) (.03) -- -- (.03) --
Dividends in
excess of net
realized gain
on
investments... -- -- -- -- -- -- -- -- --
------ ------------ ------ ------ ------- ------ ------ -------
Net asset value,
end of
period........ $14.68 $15.21 $15.73 $16.61 $16.01 $15.35 $16.60 $16.01 $15.35
------ ------ ------ ------ ------ ------- ------ ------ -------
------ ------ ------ ------ ------ ------- ------ ------ -------
TOTAL INVESTMENT
RETURN(2)....... 7.20% 11.74% 10.97% 13.19% 2.17% (2.60%)(3) 16.39%(3) 1.65% (3.15%)(3)
RATIOS/SUPPLEMENTAL
DATA:
Ratio of
expenses to
average
net assets.... -- .22% .56% .69% .81% .92%(3) 1.14%(3) 1.38% 1.44%(3)
Ratio of net
investment
income to
average net
assets........ 7.38% 7.32% 6.75% 6.24% 5.61% 5.71%(3) 4.90%(3) 4.95%
5.15%(3) Decrease
reflected in
above expense
ratios due to
undertakings
by the
Manager... 1.24% .79% .41% .25% .12% .02%(3) .15%(3) .10% .02%(3)
Portfolio
Turnover Rate... 59.15% 25.74% 38.97% 8.64% 7.21% 18.59%(4) 8.64% 7.21% 18.59%(4)
Net Assets, end
of period
(000's
Omitted)...... $51,418 $113,439 $158,437 $220,920 $235,619 $218,310 $14,631 $59,057 $64,372
<FN>
- ---------------
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
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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 Pennsylvania 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.
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
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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 $26,631
for the six months ended October 31, 1994.
Dreyfus Service Corporation retained $32,224 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 $27,522 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 Fund 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, $61,683 was charged to the
Series pursuant to the Class B Distribution Plan and $98,376 was charged to the
Series pursuant to the prior Class B Distribution Plan.
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
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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 Service 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, $184,959 and $49,188 were
charged to Class A and Class B shares, respectively, by Dreyfus Service
Corporation. From August 24, 1994 through October 31, 1994, $107,444 and $30,841
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:
The aggregate amount of purchases and sales of investment securities
amounted to $98,684,895 and $102,211,115, respectively, for the six months ended
October 31, 1994, and consisted entirely of long-term and short-term municipal
investments.
At October 31, 1994, accumulated net unrealized depreciation on investments
was $7,253,714, consisting of $6,086,214 gross unrealized appreciation and
$13,339,928 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).
<PAGE>
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
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REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Premier State Municipal Bond Fund,
Pennsylvania 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, PENNSYLVANIA 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
