PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Premier State
Municipal Bond Fund, Oregon Series. For its semi-annual reporting period
ended October 31, 1995, your Series' Class A and Class B shares produced
total returns of 5.58% and 5.32%, respectively.* Tax-free income dividends of
approximately $.335 per share for Class A shares and $.302 per share for
Class B shares were paid.** This amounts to an annualized tax-free
distribution rate per share of 4.76% for Class A shares and 4.48% for Class B
shares.***
THE ECONOMY
Concerns about lagging economic growth prompted the Federal Reserve Board
to ease the Fed Funds rate in July. The bond market has been well ahead of
the Federal Reserve in perceiving that inflation was under control. Long-term
interest rates have fallen for nearly 12 months and, accordingly, bond
investors have enjoyed significant price appreciation. Economic indicators
remain mixed, some causing concern about possible recession, while others
point toward continued expansion.
During times of business uncertainty, attention often shifts to the
consumer sector of the economy, particularly regarding the consumer's ability
to spend. There are some indications that consumers are being pinched. There
is little doubt that the economic recovery has been productivity-driven. That
is, corporations have succeeded in paring expenses from their cost of doing
business. With this reduction in overhead, bottom line profits have grown
dramatically. Yet little of this corporate prosperity has spilled over into
the consumer sector of the economy. Wages and salaries grew less than 3% over
the past year, barely keeping pace with inflation. An additional consumer
concern, new job creation, is at the slowest pace of the post-World War II
era. Recent retail sales reports were the weakest since June 1991, when the
economy was in recession. Also, there is worry that the coming holiday season
will be a poor one for retailers, since debt-burdened consumers may spend
cautiously.
Yet, we believe there are also significant signs of continued growth.
Despite indications of a potential slowdown in consumer spending, measures of
consumer confidence remain high. Business capital spending and home-building
activity have continued, providing substantial fuel for economic growth.
Business investment in durable equipment, when calculated as a percentage of
Gross Domestic Product (GDP), is at a 35-year high with no sign of a letup.
No wonder industrial production is booming! And while job and wage growth is
slow, the index of hours worked (a key determinant of GDP growth and income
generation) is rising. Providing additional confidence is the fact that the
four-and-a-half-year recovery has been well balanced: corporate debt issuance
has been moderate and the banking system is not overstretched.
We are encouraged by the Federal Reserve's successful handling of several
crises (Mexico, derivatives, Japanese banking), any one of which could have
threatened the monetary system in the U.S. and/or abroad.
MARKET ENVIRONMENT
The municipal bond market recovered strongly in 1995 as long-term
interest rates fell. If economic conditions remain sluggish and Congress is
able to arrive at an acceptable budget accord, there may be a good chance
that the Fed will ease further. We believe this indicates a favorable outlook
for bond markets in general, particularly with inflation under control. But
inflation can only go so low, and we are wary that the bond market's strength
may be counting too much on continued improvement on the price front. Thus,
while we remain confident in this market environment, we are alert to the
stimulatory effect of easing monetary policy and are watchful for any signs
of rekindling inflation. Our primary task -to maximize current income exempt
from Federal and Oregon State personal income taxes to the extent consistent
with the preservation of capital - continues to guide our portfolio
management decisions.
While the municipal market and the Series have performed very well this
year, results for municipal securities have been trailing other fixed income
markets. Concerns about tax reform may be limiting investor
enthusiasm for tax exempt securities. Since April, when serious tax reform
proposals began to surface, the municipal rally has lagged, resulting in an
increase in municipal yields as a percentage of comparable taxable bond
yields. Today, long-term municipal bonds are yielding nearly 90% of U.S.
Treasuries, which is a greater yield ratio than existed before the onset of
talk about tax reform. While it could be years before an actual change in the
tax code is adopted, the market's reaction so early in the proposal cycle
suggests to us that the ultimate legislation, if any, may have a less radical
effect on the market than feared.
THE PORTFOLIO
During the reporting period, the sector composition of the portfolio
remained relatively unchanged. Emphasis was placed on purchasing discount
coupon bonds in a market environment which offered a limited number of new
issues. These efforts were rewarded as the market continued to inch higher.
The total return of each Class was further enhanced by additional price
appreciation realized on existing holdings.
The high level of volatility exhibited by the market in recent years
underscores the need to maintain a disciplined and long-term focus. Solid
market performance thus far in 1995 has rewarded the patient investor.
Included in this report is a series of detailed statements about your
Series' holdings and its financial condition. We hope they are informative.
THE REORGANIZATION
As you know, a special meeting of shareholders of the Premier State
Municipal Bond Fund, Oregon Series was held on November 15, 1995. At this
meeting, shareholders of the Oregon Series approved an Agreement and Plan of
Reorganization whereby the Oregon Series will transfer all or substantially
all of its assets, subject to liabilities, attributable to its Class A and
Class B shares to the Premier Municipal Bond Fund in a tax-free exchange for
corresponding Class A and Class B shares of the Premier Municipal Bond Fund
(the "Exchange"). The Exchange is expected to occur on December 1, 1995, at
which time shareholders of the Oregon Series will become shareholders of the
Premier Municipal Bond Fund, and the Oregon Series will be terminated.
We would like to thank you for your participation in the Oregon Series
and for your confidence in The Dreyfus Corporation.
Very truly yours,
(Richard J. Moynihan signature logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
November 16, 1995
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid,
without taking into consideration the maximum initial sales charge in the
case of Class A shares or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B shares.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders. Income may be subject to state and local taxes for
non-Oregon residents.
***Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the maximum
offering price per share in the case of Class A shares or net asset value per
share in the case of Class B shares at the end of the period.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES
STATEMENT OF INVESTMENTS OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-98.9% AMOUNT VALUE
----------------- ---------------
<S> <C> <C>
OREGON-87.7%
Beaverton, Water Revenue 6.125%, 6/1/2014 (Insured; FSA).................... $ 200,000 $ 208,368
Clackamas County School District 6.15%, 6/1/2014 (Insured; AMBAC)........... 200,000 210,724
Douglas County Hospital Facility Authority, Revenue, Refunding
(Health Facilities-Catholic Health) 6%, 11/15/2015 (Insured; MBIA)...... 200,000 206,764
Eugene, Electric Utility Revenue 5.80%, 8/1/2019............................ 200,000 201,172
Multnomah County, Revenue 6.10%, 10/1/2014.................................. 200,000 208,142
State of Oregon, Department of Transportation, Revenue, Regional Light Rail
Fund
(Westside Project) 6.25%, 6/1/2009 (Insured; MBIA)...................... 200,000 216,156
State of Oregon, Elderly and Disabled Housing 6.10%, 8/1/2015............... 200,000 210,202
State of Oregon, Veterans Welfare 5.55%, 4/1/2010........................... 200,000 200,596
Oregon Health, Housing, Educational and Cultural Facilities Authority,
Refunding (Lewis and Clark College Project) 6.125%, 10/1/2024 (Insured; MBIA) 200,000 208,728
Oregon Higher Education Building 6%, 12/1/2015.............................. 200,000 206,086
Oregon Housing and Community Services Department, SFMR:
6.20%, 7/1/2015......................................................... 200,000 203,470
6.875%, 7/1/2028........................................................ 200,000 210,018
Portland International Airport, Revenue 5.875%, 7/1/2015.................... 200,000 203,704
Portland Sewer System, Revenue 6.25%, 6/1/2015.............................. 300,000 315,729
Salem, GO 5.70%, 8/1/2009 (Insured; MBIA)................................... 200,000 206,302
Salem-Keitzer School District 6%, 6/1/2014 (Insured; FGIC).................. 200,000 206,274
Tualatin Valley Water District, Water Revenue 6%, 6/1/2013.................. 200,000 208,338
Umatilla County School District 6%, 7/1/2014 (Insured; AMBAC)............... 200,000 208,052
Washington County School District - Beaverton 6%, 6/1/2012.................. 200,000 207,936
U.S. RELATED-11.2%
Puerto Rico Electric Power Authority, Power Revenue
6%, 7/1/2014 (Insured; FSA)............................................. 500,000 514,840
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $4,376,697)..................... $4,561,601
==============
SHORT-TERM MUNICIPAL INVESTMENT-1.1%
U.S. RELATED;
Puerto Rico Electric Power Authority, Power Revenue 3.89%, 7/1/2023 (a)
(cost $50,000).......................................................... $ 50,000 $ 50,000
==============
TOTAL INVESTMENTS-100.0% (cost $4,426,697).................................. $4,611,601
==============
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GO General Obligation
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (B) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ----------- -------- ----------------- ----------------------
<S> <C> <C> <C>
AAA Aaa AAA 48.4%
AA Aa AA 35.7
A A A 15.9
======================
100.0%
===========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security-the interest rate is subject to change
periodically.
(b) Fitch currently provides creditworthiness information for a limited
number of investments.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $4,426,697)-see statement....................................... $4,611,601
Interest receivable..................................................... 87,526
Prepaid expenses........................................................ 22,286
-------------
4,721,413
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 706
Due to Distributor...................................................... 1,808
Due to Custodian........................................................ 167,028
Payable for shares of Beneficial Interest redeemed...................... 367,204
Accrued expenses and other liabilities.................................. 35,203 571,949
-------------- --------------
NET ASSETS.................................................................. $4,149,464
==============
REPRESENTED BY:
Paid-in capital......................................................... $3,958,560
Accumulated undistributed net realized gain on investments.............. 6,000
Accumulated gross unrealized appreciation on investments................ 184,904
--------------
NET ASSETS at value......................................................... $4,149,464
==============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 205,466
==============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 105,711
==============
NET ASSET VALUE per share:
Class A Shares
($2,739,286 / 205,466 shares)......................................... $13.33
==============
Class B Shares
($1,410,178 / 105,711 shares)......................................... $13.34
==============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $138,017
EXPENSES:
Management fee-Note 2(a).............................................. $ 13,427
Shareholder servicing costs-Note 2(c)................................. 12,146
Distribution fees (Class B shares)-Note 2(b).......................... 4,800
Organization expenses................................................. 2,755
Prospectus and shareholders' reports.................................. 1,896
Legal fees............................................................ 1,679
Registration fees..................................................... 1,579
Audit fees............................................................ 1,122
Custodian fees........................................................ 548
Trustees' fees and expenses-Note 2(d)................................. 7
Miscellaneous......................................................... 1,963
--------------
41,922
Less-expense reimbursement from Manager due to
undertakings-Note 2(a)............................................ 22,677
--------------
TOTAL EXPENSES.................................................... 19,245
-------------
INVESTMENT INCOME-NET............................................. 118,772
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 6,000
Net unrealized appreciation on investments.............................. 124,081
--------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 130,081
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $248,853
=============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
APRIL 30, OCTOBER 31, 1995
1995* (UNAUDITED)
------------- ------------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 159,107 $ 118,772
Net realized gain on investments........................................ --- 6,000
Net unrealized appreciation on investments for the period............... 60,823 124,081
------------- -------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 219,930 248,853
------------- -------------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares........................................................ (100,688) (75,272)
Class B shares........................................................ (58,419) (43,500)
------------- ------------------
TOTAL DIVIDENDS................................................... (159,107) (118,772)
------------- ------------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 4,457,134 264,473
Class B shares........................................................ 2,868,459 541,785
Dividends reinvested:
Class A shares........................................................ 86,034 54,313
Class B shares........................................................ 53,564 34,650
Cost of shares redeemed:
Class A shares........................................................ (1,725,732) (511,317)
Class B shares........................................................ (1,465,679) (699,124)
------------- ------------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS.................................................... 4,273,780 (315,220)
------------- ------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... 4,334,603 (185,139)
NET ASSETS:
Beginning of period..................................................... --- 4,334,603
------------- ------------------
End of period........................................................... $ 4,334,603 $ 4,149,464
============= ==================
</TABLE>
<TABLE>
<CAPTION>
SHARES
-----------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------- ----------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
APRIL 30, OCTOBER 31, 1995 APRIL 30, OCTOBER 31, 1995
1995* (UNAUDITED) 1995* (UNAUDITED)
------------ -------------------- ------------- ------------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold........................... 352,683 20,001 227,550 41,194
Shares issued for dividends reinvested 6,837 4,127 4,254 2,633
Shares redeemed....................... (139,296) (38,886) (117,314) (52,606)
------------ -------------------- ------------- -------------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING.............. 220,224 (14,758) 114,490 (8,779)
============= =================== ============= ===================
* From May 6, 1994 (commencement of operations) to April 30, 1995.
</TABLE>
See independent accountants' review report and notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OREGON 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
--------------------------------------- ---------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
YEAR ENDED APRIL 30, OCTOBER 31, 1995 YEAR ENDED APRIL 30, OCTOBER 31, 1995
-------------------- --------------------
PER SHARE DATA: 1995(1) (UNAUDITED) 1995(1) (UNAUDITED)
---------- ----------------- ------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $12.50 $12.95 $12.50 $12.95
---------- ----------- ------- ----------
INVESTMENT OPERATIONS:
Investment income-net......... .76 .33 .69 .30
Net realized and unrealized gain
on investments.............. .45 .38 .45 .39
---------- ----------- ------- ----------
TOTAL FROM
INVESTMENT OPERATIONS... 1.21 .71 1.14 .69
---------- ----------- ------- ----------
DISTRIBUTIONS;
Dividends from investment
income-net.................. (.76) (.33) (.69) (.30)
---------- ----------- ------- ----------
Net asset value, end of period $12.95 $13.33 $12.95 $13.34
========== =========== ======= ==========
TOTAL INVESTMENT RETURN (2)(3).... 10.12% 11.07% 9.57% 10.55%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets (3)...... .01% .58% .51% 1.10%
Ratio of net investment income to
average net assets (3)...... 5.95% 5.07% 5.47% 4.52%
Decrease reflected in above expense
ratios due to undertakings by the
Manager (3)................. 1.59% .93% 1.62% .91%
Portfolio Turnover Rate (4)... .- 7.07% --- 7.07%
Net Assets, end of period
(000's Omitted)............. $2,852 $2,739 $1,483 $1,410
_______________________________
(1) From May 6, 1994 (commencement of operations) to April 30, 1995.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Premier State Municipal Bond Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering fifteen series including the Oregon Series (the "Series"). Premier
Mutual Fund Services, Inc. (the "Distributor") acts as the distributor of the
Fund's shares. 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 Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.
As of October 31, 1995, Major Trading Corporation, a subsidiary of Mellon
Bank Investments Corporation, held 105,685 shares of Class A and 79,526
shares of Class B. Mellon Bank Investments Corporation is a subsidiary of
Mellon Bank.
On July 19, 1995, the Board of Trustees approved, subject to approval by
the shareholders of the Oregon Series, an Agreement and Plan of
Reorganization providing for the transfer of all or substantially all of the
assets and liabilities of the Series in a tax free exchange for shares of
beneficial interest of the Premier Municipal Bond Fund at net asset value and
the assumption of stated liabilities (the "Exchange"). The Exchange was
approved by the shareholders of the Series on November 15, 1995, and became
effective after the close of business on December 1, 1995 at which time the
Premier Municipal Bond Fund issued 175,732.468 Class A shares valued at
$14.57 per share and 90,536.994 Class B shares valued at $14.57 per share to
the respective Class A and Class B shareholders of the Series.
With respect to the Series 190,507.592 Class A shares valued at $13.44
per share and 98,076.137 Class B shares valued at $13.45 per share
representing combined net assets of $3,879,458, were exchanged for the
respective Class A and Class B shares of the Premier Municipal Bond Fund.
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
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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.
(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 April 3, 1995 through September 28, 1995, to reduce the
management fee, shareholder services plan fees and reimburse such excess
expenses paid by the Series, to the extent that the Series' aggregate
expenses (excluding 12b-1 distribution plan fees and certain expenses as
described above) exceeded specified annual percentages of the Series' average
daily net assets. The Manager has currently undertaken from September 29,
1995 through April 30, 1996 to reduce the management fee and reimburse such
excess expenses paid by the Series, to the extent that the Series' aggregate
annual expenses (excluding 12b-1 distribution plan fees and certain expenses
as described above) exceed an annual rate of 1.25 of 1% of the average daily
value of the Series' net assets. The expense reimbursement, pursuant to the
undertakings, amounted to $22,677 for the six months ended October 31, 1995.
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Series 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. During the six months ended October 31, 1995,
$4,800 was charged to the Series for the Class B shares.
(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 the provision of certain services. 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. For the six months ended October 31,
1995, $3,703 and $2,400 were charged to the Class A and Class B shares,
respectively, by the Distributor pursuant to the Shareholder Services Plan.
(D) Each trustee who is not an "affiliated person" as defined in the Act
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 $1,998,256 and $1,956,000, respectively, for the six months ended
October 31, 1995, and consisted entirely of long-term and short-term
municipal investments.
At October 31, 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, OREGON SERIES
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Premier State Municipal Bond Fund,
Oregon Series (one of the Series constituting the Premier State Municipal
Bond Fund) as of October 31, 1995, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended October 31, 1995. 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 and financial
highlights from May 6, 1994 (commencement of operations) to April 30, 1995
and in our report dated June 6, 1995, we expressed an unqualified opinion on
such statement of changes in net assets and financial highlights.
(Ernst & Young LLP signature)
New York, New York
December 7, 1995
(Dreyfus Lion "d" logo)
PREMIER STATE MUNICIPAL
BOND FUND, OREGON 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
First Data Investor 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. 019/373SA9510
[Dreyfus Logo]
Semi-Annual Report
Premier State
Municipal Bond Fund
Oregon Series
October 31, 1995
