December 1, 1996
PREMIER STATE MUNICIPAL BOND FUND
Supplement to Prospectus
Dated September 3, 1996
Except as otherwise set forth below, effective December 1, 1996,
Class B shares are subject to a maximum 4% contingent deferred sales charge
("CDSC"), which is assessed if you redeem Class B shares within the first
six years of their purchase.
Class B shares purchased by shareholders who beneficially owned Class
B shares on November 30, 1996 will be subject to a maximum 3% CDSC, in
accordance with the disclosure currently set forth in the Fund's Prospectus
dated September 3, 1996, to which this supplement is attached.
The following table sets forth the rates of the CDSC effective
December 1, 1996:
Year Since Purchase CDSC as a Percentage of Amount
Payment Was Made Invested or Redemption Proceeds
First 4.00
Second 4.00
Third 3.00
Fourth 3.00
Fifth 2.00
Sixth 1.00
Due to the changes in the CDSC schedule, certain information contained
in the Fund's Prospectus has changed. The following information replaces and
supersedes any contrary information contained in the section of the Fund's
Prospectus entitled "Fee Table."
<TABLE>
Example
You would pay the following
expenses on a $1,000 investment,
assuming 5% annual return and (2) Connecticut Series Florida Series Georgia Series
except where noted, redemption at the Class B Class B Class B
end of each time period:
<S> <C> <C> <C>
1 Year $55/$15* $54/$14* $55/$15*
3 Years $76/$46* $75/$45* $76/$46*
5 Years $99/$79* $97/$77* $99/$79*
10 Years $145** $143** $147**
</TABLE>
<TABLE>
Example
You would pay the following
expenses on a $1,000 investment,
assuming 5% annual return and (2)
except where noted, redemption at the Maryland Series Massachusetts Michigan Series
end of each time period: Class B Series - Class B Class B
<S> <C> <C> <C>
1 Year $55/$15* $55/$15* $55/$15*
3 Years $75/$45* $75/$45* $76/$46*
5 Years $98/$78* $98/$78* $99/$79*
10 Years $144** $145** $146**
Minnesota Series North Carolina Ohio Series
Class B Series - Class B Class B
1 Year $55/$15* $55/$15* $54/$14*
3 Years $75/$45* $78/$48* $75/$45*
5 Years $98/$78* $102/$82* $98/$78*
10 Years $144** $154** $143**
Pennsylvania Series Texas Series Virginia Series
Class B Class B Class B
1 Year $55/$15* $55/$15* $56/$16*
3 Years $75/$45* $75/$45* $79/$49*
5 Years $98/$78* $98/$78* $105/$85*
10 Years $145** $145** $159**
</TABLE>
* Assuming no redemption of shares.
** Ten-year figure assumes conversion of
Class B shares to Class A shares at the
end of the sixth year following the date
of purchase.
The following information replaces and supersedes any contrary
information contained in the section of the Fund's Prospectus entitled
"Alternative Purchase Methods."
You should consider the effect of the CDSC period and any conversion
rights of the Classes in the context of our own investment time frame. For
example, while Class C shares have a shorter CDSC period than Class B shares,
Class C shares do not have a conversion feature and, therefore, are subject to
an ongoing distribution fee. Class B shares may be more attractive than Class
C shares to investors with long-term investment outlooks. Generally, Class A
shares may be more appropriate for investors who invest $1,000,000 or more in
Fund shares, and for investors who invest between $100,000 and $999,999 in Fund
shares with long-term investment outlooks. Class A shares will not be
appropriate for investors who invest less that $50,000 in Fund shares.
The following information replaces and supersedes any contrary
information contained in the section of the Fund's Prospectus entitled
"Shareholder Services - Automatic Withdrawal Plan."
No CDSC with respect to Class B shares will be imposed on withdrawals
made under the Automatic Withdrawal Plan, provided that the amounts withdrawn
under the plan do not exceed on an annual basis 12% of the account value at
the time the shareholder elects to participate in the Automatic Withdrawal
Plan. Withdrawals with respect to Class B shares under the Automatic
Withdrawal Plan that exceed on an annual basis 12% of the value of the
shareholder's account will be subject to a CDSC on the amounts exceeding 12% of
the initial account value. Class C shares withdrawn pursuant to the Automatic
Withdrawal Plan will be subject to any applicable CDSC. Purchases of
additional Class A shares where the sales load is imposed concurrently with
withdrawals of Class A shares generally are undesirable.
The following information replaces and supersedes the section of the
Fund's Prospectus entitled "How to Redeem Shares - Reinvestment Privilege."
Upon written request, you may reinvest up to the number of Class A or
Class B shares you have redeemed, within 45 days of redemption, at the
then-prevailing net asset value without a sales load, or reinstate your account
for the purpose of exercising the Exchange Privilege. Upon reinvestment, with
respect to Class B shares, or Class A shares if such shares were subject to a
CDSC, the shareholder's account will be credited with an amount equal to the
CDSC previously paid upon redemption of the Class A or Class B shares
reinvested. The Reinvestment Privilege may be exercised only once.
