PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Premier State
Municipal Bond Fund - Georgia Series. For its annual reporting period ended
April 30, 1996, your Series produced a total return of 7.14% for Class A
shares, 6.69% for Class B shares and, since their inception on August 15,
1995, 4.47% for Class C shares.* Income dividends exempt from Federal and
Georgia State personal income taxes of approximately $.660 for Class A
shares, $.594 for Class B shares and $.379 for Class C shares were paid.**
This amounts to an annualized tax-free distribution rate per share of 4.82%,
4.53% and 4.07% for Class A, Class B and Class C shares respectively.***
THE ECONOMY
Concerns that the economy was heading toward recession were eased by the
recent release of brighter-than-expected reports on employment and consumer
spending. Consequently, the Federal Reserve Board refrained from making any
further reductions in the Federal Funds rate; the last easing of this
benchmark interest rate occurred on January 31. In reaction to the more
optimistic economic news (and the related fears of a potential rekindling of
inflation), long-term interest rates as measured by 30-year Treasury bonds
have risen nearly one percentage point since February.
The rosier outlook for the economy was spearheaded by reports of large
gains in employment for two consecutive months (February and March).
Furthermore, personal income and expenditures data indicated that consumers
continued to spend, despite their present high level of installment credit.
Retail sales reports have correspondingly edged higher, confirming a modest
recovery in consumer spending from its year-end slump.
Supporting the growing consensus that the economy has picked up steam
were reports of slow but steady growth in the manufacturing sector. After
adjusting data for the 17-day General Motors strike, industrial output rose
modestly. New orders for durable goods, a closely watched indicator of future
hiring and production, also posted gains.
Despite the economy's apparent recovery from its year-end pause,
inflation has remained under control. Through March of this year, the
Consumer Price Index rose at an annual rate of 2.8%. There appear to be few
signs of inflationary pressure in the economy. Factories are running at a
relatively comfortable rate of capacity (82.5%), markedly below this
expansion's peak of 85.1% reached over a year ago. With major industries
trying to reduce inventories, there is little to suggest that product pricing
will surge upwards. Reflecting this absence of so-called pipeline
inflationary pressure, price increases at both the wholesale and production
levels of the economy remained similarly under control. We believe the
cautionary stance of the Federal Reserve regarding additional reductions in
interest rates combined with the fiscal restraint from reduced government
spending should serve as additional moderating forces against any resurgence
in inflation.
We are mindful, however, of potential change in what has been a benign
inflation picture. The recent rise in oil prices, along with strength in
other commodity prices such as grain, is not to be dismissed lightly. While
they may be only aberrations of a temporary nature, they also could represent
early warning signs of a fundamental change in inflation which will be seen
later in the year.
MARKET ENVIRONMENT
In the beginning of the fiscal year we cautiously embraced the market's
performance and its favorable impact on the Series. We were, however, wary of
the bond market's strength and its dependence on continued low inflation. We
remained fully invested to a large extent during this improved market, but
alert to the stimulating effect of easing monetary policy and the possibility
of rekindling inflation.
The market subsequently experienced a dramatic downturn late in the first
quarter of 1996. This weakness continued to be more pronounced than the
market anticipated, despite some marginal improvement recently. The
expectations of faster economic growth combined with rising commodity prices
raised the prospect of future inflation.
The most recent market peak in prices was in mid-February, with yields on
good quality long bonds around 5.30%. By early April, prices had declined and
yield levels had risen to 5.80%. Markets rarely move in one direction over an
extended period of time, therefore we are optimistic that much of the market
correction is behind us. We remain cautious, however, awaiting confirmation
of a market bottom before pursuing a more aggressive strategy.
THE PORTFOLIO
The Series has maintained a somewhat defensive stance, given recent
market conditions, but has attempted to purchase more discount coupons to
enhance performance as we move forward. However, there has been a limited
supply of specialty state paper available to maneuver to an ideal goal. In
addition, many issuers have previously attained financing for their capital
programs so overall new issuance remains diminished compared to previous
years. This drought, combined with market uncertainty, has resulted in a
constricted trading market.
Giving consideration to these factors, the Series made it a priority to
purchase a number of discount bonds in both the primary and secondary
markets. We are continuing with this strategy, since the portfolio was
largely defensive, in order to contend with the market's tenuous overtones.
By the end of the second fiscal quarter, however, the market showed
indications of possibly trending upward. As this scenario unfolded, the
discount bonds purchased earlier in the year soon reached premium levels and
the portfolio was once again seeking ways to bolster performance. This
strategy was well-founded since the bond market incrementally gained positive
momentum through year-end. However, as the market seemed to be nearing a new
high, availability of quality structured discount bonds faded and the Series
focused on selling holdings with short calls and short maturities. In
addition, as bonds seemed to reach peak levels, the Series sold premium bonds
and took profits as we sensed an end to the rally.
The economy is at a virtual crossroads where growth is concerned. Going
forward, we anticipate periods of market volatility until the rate of
economic growth is ascertained. We are attempting to increase our cash
position to capitalize on a potential rebound early on, but once again are
maintaining a generally defensive posture with an eye toward improving the
structure of the bonds held in the portfolio. The Series is conservatively
positioned, which we believe will help it deal with the uncertainty in the
economy and the negative side of volatility should economic growth expand
rapidly.
Our primary tasks are to protect principal, maintain liquidity and
distribute a high level of current tax-exempt income to you, our
shareholders. These factors continue to motivate our portfolio management
decisions. The high level of volatility exhibited by the market in recent
years underscores the need to maintain a disciplined and longer-term
perspective.
Included in this report is a series of detailed statements about your
Series' holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the
Series and in The Dreyfus Corporation.
Sincerely,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 15, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, without taking into account 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 and Class C shares.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders. Income may be subject to some State and local taxes for
non-Georgia 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 in the case of Class A shares or the net asset value
per share in the case of Class B or Class C shares, at the end of the period.
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES APRIL 30, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER STATE
MUNICIPAL BOND FUND, GEORGIA SERIES CLASS A SHARES AND THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX
[Exhibit A]
Dollars
$12,627
Lehman Brothers
Municipal Bond Index*
$12,195
Premier State Municipal
Bond Fund, Georgia
Series (Class A Shares)
[Exhibit A]
*Source: Lehman Brothers
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
CLASS A SHARES CLASS B SHARES
____________________________________________________________ _______________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
PERIOD ENDED 4/30/96 Sales Charge Sales Charge (4.5%) PERIOD ENDED 4/30/96 Redemption Redemption*
_____________________ ________________ ___________________ ____________________ __________ _____________________
<S> <C> <C> <C> <C> <C>
1 Year 7.14% 2.34% 1 Year 6.69% 3.69%
From Inception (9/3/92) 6.91 5.57 From Inception (1/15/93) 5.91 5.37
</TABLE>
ACTUAL AGGREGATE TOTAL RETURNS
CLASS C SHARES
_____________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
PERIOD ENDED 4/30/96 Redemption Redemption**
____________________ ___________ ______________________
From Inception (8/15/95) 4.47% 3.47%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of
Premier State Municipal Bond Fund, Georgia Series on 9/3/92 (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 8/31/92 is
used as the beginning value on 9/3/92. All dividends and capital gain
distributions are reinvested. Performance for Class B and Class C shares
will vary from the performance of Class A shares shown above due to
differences in charges and expenses.
The Series invests primarily in Georgia 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 municipal market
overall. The Index does not take into account charges, fees and other
expenses. Also, unlike the Fund which principally limits investments to
Georgia municipal obligations, the Index is not State specific. These factors
can contribute to the Index potentially outperforming the Series. Further
information relating to Series performance, including expense reimbursements,
if applicable, is contained in the Financial Highlights 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.
**Maximum contingent deferred sales charge for Class C shares is 1% within
one year of the date of purchase.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF INVESTMENTS APRIL 30, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
__________ __________
<S> <C> <C>
GEORGIA-97.9%
Albany, Sewer System Revenue 6.50%, 7/1/2009 (Insured; MBIA)................ $ 100,000 $ 109,094
Albany-Dougherty Inner City Authority, Revenue, Refunding 6%, 2/1/2011...... 200,000 203,008
Athens-Clarke County Unified Government, Water and Sewer Revenue, Refunding
5.875%, 1/1/2008 (Insured; FGIC)........................................ 265,000 273,888
Atlanta:
Airport Facilities Revenue:
6.50%, 1/1/2013....................................................... 150,000 154,929
6%, 1/1/2014 (Insured; AMBAC)......................................... 1,000,000 1,000,260
COP (Atlanta Pretrial Detention Center Project) 6.25%, 12/1/2011 (Insured; MBIA) 300,000 311,370
GO 6.10%, 12/1/2019..................................................... 1,000,000 1,008,860
School Improvement 5.60%, 12/1/2018..................................... 1,000,000 957,360
Atlanta Downtown Development Authority, Revenue, Refunding
(Underground Atlanta Project) 6.25%, 10/1/2016.......................... 200,000 205,354
Barrow County School District 5.60%, 2/1/2015 (Insured; MBIA)............... 1,000,000 977,780
Bartow County, Water and Sewer Revenue, Refunding
6%, 9/1/2015 (Insured; AMBAC)........................................... 450,000 455,989
Chatham County School District 6.25%, 8/1/2016.............................. 1,000,000 1,098,460
Clayton County and Clayton County Water Authority, Water and Sewer Revenue,
Refunding 5.60%, 5/1/2013 (Insured; AMBAC).............................. 1,200,000 1,191,816
Columbus, Water and Sewer Revenue, Refunding:
6.25%, 5/1/2011 (Insured; FGIC)......................................... 155,000 162,114
5.70%, 5/1/2020......................................................... 500,000 478,905
Columbus Hospital Authority, Revenue Certificates (Saint Francis Hospital)
6.20%, 1/1/2010 (Insured; MBIA)......................................... 200,000 207,090
Coweta County School System:
6.35%, 8/1/2012......................................................... 100,000 104,388
Refunding 5.75%, 2/1/2010 (Insured; FGIC)............................... 200,000 203,348
Dekalb County Development Authority, Revenue:
Refunding (Emory University Project) 5.25%, 11/1/2015................... 1,000,000 943,500
(Wesley Homes, Inc.-Budd Terrace Project)
6.75%, 10/1/2013 (LOC; Wachovia Bank of Georgia, N.A.) (a)............ 200,000 207,382
Dekalb County Health Facilities, GO 5.50%, 1/1/2020......................... 1,000,000 942,550
Dekalb County School District, Refunding 5.60%, 7/1/2010.................... 500,000 503,125
Fayette County School District 6.125%, 3/1/2015............................. 500,000 514,455
Fulco Hospital Authority, Revenue Anticipation Certificates
(Georgia Baptist Healthcare) 6.25%, 9/1/2013............................ 250,000 241,265
Fulton County, Water and Sewer Revenue, Refunding
6.375%, 1/1/2014 (Insured; FGIC)........................................ 290,000 311,759
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
__________ __________
GEORGIA (CONTINUED)
Fulton County Building Authority, Revenue, Refunding
(County Government and Health Facilities Project) 6.125%, 1/1/2011..... $ 300,000 $ 311,193
Fulton County Development Authority, Special Facilities Revenue, Refunding
(Delta Air Lines Inc., Project) 6.95%, 11/1/2012........................ 245,000 253,698
Fulton County Hospital Authority, Revenue Anticipation Certificates
(Northside Hospital Project)
6.625%, 10/1/2016 (Insured; MBIA) (Prerefunded 10/1/2002) (b)........... 200,000 223,430
Gainesville, Water and Sewer Revenue, Refunding 6%, 11/15/2012 (Insured; FGIC) 300,000 315,981
Gainesville and Hall County Hospital Authority, Revenue Anticipation
Certificates
(Northeast Healthcare Project) 6.25%, 10/1/2012 (Insured; MBIA)......... 100,000 104,004
Georgia, GO:
6.30%, 3/1/2008......................................................... 100,000 110,042
6.65%, 3/1/2009......................................................... 1,000,000 1,128,960
5.65%, 3/1/2012......................................................... 1,000,000 1,012,570
Georgia Housing and Finance Authority, Revenue:
(Home Ownership Opportunity Program) 6.50%, 12/1/2011................... 130,000 132,817
Single Family Mortgage 6.50%, 12/1/2017 (Insured; FHA).................. 1,000,000 1,007,270
Georgia Medical Center Hospital Authority, Revenue
(Columbus Regional Healthcare System) 5.50%, 8/15/2015 (Insured; MBIA).. 2,200,000 2,087,206
Georgia Municipal Electric Authority:
Power Revenue, Refunding:
5.50%, 1/1/2012....................................................... 1,000,000 956,420
6.125%, 1/1/2014 (Insured; FGIC)...................................... 300,000 305,415
Special Obligation (First Crossover-General Resolution) 6.50%, 1/1/2020. 100,000 105,548
Glynn County, Board of Education 5.10%, 7/1/2011............................ 500,000 471,610
Hancock County, Various Purpose Asset Guaranty 6.70%, 4/1/2015.............. 1,000,000 1,042,960
Henry County and Henry County Water and Sewer Authority, Revenue, Refunding
6.50%, 2/1/2011 (Insured; MBIA)......................................... 100,000 105,748
Marietta Development Authority, Revenue (First Mortgage-Life College)
5.75%, 9/1/2014 (Insured; CGIC)......................................... 850,000 831,564
Metropolitan Atlanta Rapid Transportation Authority, Sales Tax Revenue, Refunding
6.25%, 7/1/2020 (Insured; AMBAC)........................................ 300,000 317,604
Monroe County Development Authority, PCR (Oglethorpe Power Corp. Scherer
Project)
6.80%, 1/1/2011......................................................... 100,000 108,026
Private Colleges and Universities Authority, Revenue, Refunding
(Spellman College Project) 6.20%, 6/1/2014 (Insured; FGIC).............. 1,000,000 1,037,510
Roswell, GO 5.65%, 2/1/2011................................................. 1,000,000 1,009,610
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_____________ __________
GEORGIA (CONTINUED)
Savannah Economic Development Authority, PCR, Refunding (Union Camp Corp. Project)
6.80%, 2/1/2012......................................................... $ 200,000 $ 214,074
Savannah Hospital Authority, Revenue, Refunding (Saint Joseph's Hospital
Project)
6.20%, 7/1/2023......................................................... 1,000,000 964,940
Sugar Hill Public Utility, Revenue, Refunding 5.90%, 1/1/2014 (Insured; FSA) 500,000 498,595
U.S. RELATED-2.1%
Puerto Rico, GO, Refunding 6%, 7/1/2014..................................... 600,000 591,786
______
TOTAL INVESTMENTS (cost $27,683,090)........................................ $28,016,630
______
______
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation GO General Obligation
CGIC Capital Guaranty Insurance Company LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FHA Federal Housing Administration PCR Pollution Control Revenue
FSA Financial Security Assurance
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_________ ______ _________________ ___________________
<S> <C> <C> <C>
AAA Aaa AAA 49.1%
AA Aa AA 35.3
A A A 14.7
BB Ba BB .9
_____
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 escrow 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) Fitch currently provides creditworthiness information for a limited
number of investments.
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $27,683,090)-see statement...................................... $28,016,630
Cash.................................................................... 110,909
Interest receivable..................................................... 479,345
Receivable for shares of Beneficial Interest subscribed................. 10,000
Prepaid expenses........................................................ 1,384
__________
28,618,268
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $12,932
Due to Distributor...................................................... 14,221
Payable for shares of Beneficial Interest redeemed...................... 27,051
Accrued expenses........................................................ 24,167 78,371
_______ ___________
NET ASSETS.................................................................. $28,539,897
___________
___________
REPRESENTED BY:
Paid-in capital......................................................... $28,940,292
Accumulated net realized (loss) on investments.......................... (733,935)
Accumulated net unrealized appreciation on investments-Note 3........... 333,540
__________
NET ASSETS at value......................................................... $28,539,897
___________
___________
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 639,462
___________
___________
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 1,539,970
___________
___________
Class C Shares
(unlimited number of $.001 par value shares authorized)............... 6,723
___________
___________
NET ASSET VALUE per share:
Class A Shares
($8,346,358 / 639,462 shares)......................................... $13.05
__________
__________
Class B Shares
($20,105,797 / 1,539,970 shares)...................................... $13.06
__________
__________
Class C Shares
($87,742 / 6,723 shares).............................................. $13.05
__________
__________
See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1996
INVESTMENT INCOME:
INTEREST INCOME......................................................... $1,673,453
EXPENSES:
Management fee-Note 2(a).............................................. $ 160,860
Shareholder servicing costs-Note 2(c)................................. 103,832
Distribution fees-Note 2(b)........................................... 101,771
Custodian fees........................................................ 3,641
Professional fees..................................................... 3,061
Prospectus and shareholders' reports.................................. 1,092
Registration fees..................................................... 795
Trustees' fees and expenses-Note 2(d)................................. 356
Miscellaneous......................................................... 4,655
______
TOTAL EXPENSES.................................................. 380,063
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 59,898
______
NET EXPENSES.................................................... 320,165
__________
INVESTMENT INCOME-NET........................................... 1,353,288
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $(205,254)
Net unrealized appreciation on investments.............................. 774,119
______
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 568,865
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,922,153
___________
___________
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED APRIL 30,
___________________
1995 1996
_______ ______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 1,478,725 $ 1,353,288
Net realized (loss) on investments...................................... (508,036) (205,254)
Net unrealized appreciation on investments for the year................. 667,389 774,119
_________ ____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 1,638,078 1,922,153
_________ ____________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares........................................................ (548,712) (443,972)
Class B shares........................................................ (930,013) (908,818)
Class C shares........................................................ - (498)
_________ ____________
TOTAL DIVIDENDS................................................... (1,478,725) (1,353,288)
_________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 698,373 326,483
Class B shares........................................................ 4,788,621 2,305,085
Class C shares........................................................ - 88,634
Dividends reinvested:
Class A shares........................................................ 386,985 316,447
Class B shares........................................................ 479,506 438,970
Class C shares........................................................ - 498
Cost of shares redeemed:
Class A shares........................................................ (2,172,832) (1,482,789)
Class B shares........................................................ (2,227,045) (2,436,019)
_________ ____________
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS 1,953,608 (442,691)
========= ============
TOTAL INCREASE IN NET ASSETS.................................... 2,112,961 126,174
NET ASSETS:
Beginning of year....................................................... 26,300,762 28,413,723
_________ ____________
End of year............................................................. $28,413,723 $28,539,897
_________ ____________
_________ ____________
</TABLE>
<TABLE>
<CAPTION>
SHARES
_____________________________________________________________________
CLASS A CLASS B CLASS C
________________________ ________________________ ___________
YEAR ENDED
YEAR ENDED APRIL 30, YEAR ENDED APRIL 30, APRIL 30,
________________________ ________________________
1995 1996 1995 1996 1996*
__________ ________ _______ _______ __________
<S> <C> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold............ 56,480 24,765 380,245 173,357 6,685
Shares issued for
dividends reinvested. 30,950 23,848 38,336 33,082 38
Shares redeemed........ (178,009) (111,113) (180,856) (183,789) -
________ _________ _________ _________ ________
NET INCREASE
(DECREASE)
IN SHARES
OUTSTANDING.... (90,579) (62,500) 237,725 22,650 6,723
________ _________ _________ _________ ________
________ _________ _________ _________ ________
_________________________
* From August 15, 1995 (commencement of initial offering) to April 30, 1996.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA 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
___________________________________________
YEAR ENDED APRIL 30,
___________________________________________
PER SHARE DATA: 1993(1) 1994 1995 1996
_______ ____ ____ ____
<S> <C> <C> <C> <C>
Net asset value, beginning of year....................... $12.50 $13.27 $12.69 $12.80
______ ______ ______ ______
INVESTMENT OPERATIONS:
Investment income-net.................................... .51 .73 .73 .66
Net realized and unrealized gain (loss) on investments... .77 (.58) .11 .25
______ ______ ______ ______
TOTAL FROM INVESTMENT OPERATIONS....................... 1.28 .15 .84 .91
______ ______ ______ ______
DISTRIBUTIONS;
Dividends from investment income-net..................... (.51) (.73) (.73) (.66)
___ ___ ___ ___
Net asset value, end of year............................. $13.27 $12.69 $12.80 $13.05
______ ______ ______ ______
______ ______ ______ ______
TOTAL INVESTMENT RETURN(2)................................... 15.91%(3) .97% 6.87% 7.14%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................. - .07% .25% .74%
Ratio of net investment income to average net assets..... 5.55%(3) 5.41% 5.80% 5.00%
Decrease reflected in above expense ratios due to undertakings
by the Manager......................................... 1.46%(3) 1.02% .78% .21%
Portfolio Turnover Rate.................................. 37.79%(4) 6.76% 34.04% 33.09%
Net Assets, end of year (000's Omitted).................. $7,304 $10,058 $8,985 $8,346
_________________________________
(1) From September 3, 1992 (commencement of operations) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
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 B SHARES CLASS C SHARES
_____________________________________ ____________________
YEAR ENDED APRIL 30, YEAR ENDED APRIL 30,
_____________________________________
PER SHARE DATA: 1993(1) 1994 1995 1996 1996(2)
_______ ____ ____ ____ ____________________
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.... $12.71 $13.27 $12.69 $12.80 $12.85
______ ______ ______ ______ ______
INVESTMENT OPERATIONS:
Investment income-net................. .20 .67 .66 .59 .38
Net realized and unrealized gain (loss)
on investments...................... .56 (.58) .11 .26 .20
______ ______ ______ ______ ______
TOTAL FROM INVESTMENT OPERATIONS.... .76 .09 .77 .85 .58
______ ______ ______ ______ ______
DISTRIBUTIONS;
Dividends from investment income-net.. (.20) (.67) (.66) (.59) (.38)
______ ______ ______ ______ ______
Net asset value, end of year.......... $13.27 $12.69 $12.80 $13.06 $13.05
______ ______ ______ ______ ______
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(3)................ 20.66%(4) .46% 6.33% 6.69% 6.28%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .50%(4) .58% .75% 1.24% 1.98%(4)
Ratio of net investment income to
average net assets.................. 4.60%(4) 4.85% 5.27% 4.46% 3.73%(4)
Decrease reflected in above expense ratios due
to undertakings by the Manager...... 1.37%(4) 1.02% .80% .20% -
Portfolio Turnover Rate............... 37.79%(5) 6.76% 34.04% 33.09% 33.09%
Net Assets, end of year (000's Omitted) $6,319 $16,243 $19,429 $20,106 $88
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(3) Exclusive of sales load.
(4) Annualized.
(5) Not annualized.
See notes to financial statements.
</TABLE>
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA 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 twelve series, including the Georgia Series (the "Series"). The
Fund's investment objective is to maximize current income exempt from Federal
and, where applicable, from State income taxes, without undue risk. The
Dreyfus Corporation ("Manager") serves as the Fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Series offers Class A, Class B and
Class C shares. Class A shares are subject to a sales charge imposed at the
time of purchase, 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 and Class C shares are subject to a contingent deferred
sales charge imposed at the time of redemption on redemptions made within one
year of purchase. Other differences between the three Classes include the
services offered to and the expenses borne by each Class and certain voting
rights.
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.
(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.
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
NOTES TO FINANCIAL STATEMENTS (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, if any, 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, 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.
The Series has an unused capital loss carryover of approximately $648,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1996. The
carryover does not include net realized securities losses from November 1,
1995 through April 30, 1996 which are treated, for Federal income tax
purposes, as arising in fiscal 1997. If not applied, $14,625 of the carryover
expires in fiscal 2002, $366,375 of the carryover expires in fiscal 2003 and
$267,000 of the carryover expires in fiscal 2004.
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 value
of the Series' average daily 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, 1995 through July 6, 1995 to reimburse all fees
and expenses of the series (excluding 12b-1 distribution plan fees,
Shareholder Services Plan fees and certain expenses as described above), and
thereafter through March 17, 1996, to reduce the management fee 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
March 18, 1996 through April 30, 1997 to reduce the management fee or
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 value of the Series' average daily net assets. The reduction in
management fee, pursuant to the undertakings, amounted to $59,898 for the
year ended April 30, 1996.
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $83 during the year ended April 30,1996 from commissions earned on
sales of the Series' shares.
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 and
Class C shares at an annual rate of .50 of 1% of the value of the average
daily net assets of Class B shares and .75 of 1% of the value of the average
daily net assets of Class C shares. During the year ended April 30, 1996,
$101,671 was charged to the Series for the Class B shares and $100 was
charged to the Series for the Class C 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, Class B and Class C 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 (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. For the year ended April 30, 1996,
$22,250, $50,835 and $33 were charged to Class A, Class B and Class C shares,
respectively, by the Distributor pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Series compensates Dreyfus Transfer,
Inc., a wholly-owned subsidiary of the Manager, under a transfer agency
agreement for providing personnel and facilities to perform transfer agency
services for the Series. Such compensation amounted to $5,294 for the period
from December 1, 1995 through April 30, 1996.
(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,
excluding short-term securities, during the year ended April 30, 1996
amounted to $9,554,141 and $10,052,890, respectively.
At April 30, 1996, accumulated net unrealized appreciation on investments
was $333,540, consisting of $612,291 gross unrealized appreciation and
$278,751 gross unrealized depreciation.
At April 30, 1996, 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, GEORGIA SERIES
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Premier State Municipal Bond Fund,
Georgia Series (one of the Series constituting the Premier State Municipal
Bond Fund) as of April 30, 1996, 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, 1996 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, Georgia Series at April 30,
1996, 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 & Young LLP signature logo]
New York, New York
June 5, 1996
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Series hereby designates all the
dividends paid from investment income-net during the fiscal year ended April
30, 1996 as "exempt-interest dividends" (not subject to regular Federal and,
for individuals who are Georgia residents, Georgia personal income taxes).
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 1996 calendar year
on Form 1099-DIV which will be mailed by January 31, 1997.
[Dreyfus lion "d" logo]
PREMIER STATE MUNICIPAL
BOND FUND, GEORGIA 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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 068/627AR964
[Dreyfus logo]
Annual Report
Premier State
Municipal Bond Fund
Georgia Series
April 30, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
____________________________________________________
| | | |
| | | PREMIER STATE |
| PERIOD | LEHMAN BROTHERS |MUNICIPAL BOND FUND, |
| | MUNICIPAL | GEORGIA SERIES |
| | BOND INDEX * | (CLASS A SHARES) |
|-----------|-----------------|---------------------|
| 9/3/92 | 10,000 | 9,549 |
| 4/30/93 | 10,736 | 10,548 |
| 4/30/94 | 10,968 | 10,650 |
| 4/30/95 | 11,698 | 11,382 |
| 4/30/96 | 12,627 | 12,195 |
|---------------------------------------------------|
*Source: Lehman Brothers
