PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Premier State
Municipal Bond Fund, Ohio Series. For its semi-annual reporting period ended
October 31, 1995, your Series' Class A and Class B shares produced total
returns of 6.18% and 5.89%, respectively.* Tax-free income dividends of
approximately $.361 per share for Class A shares and $.327 per share for
Class B shares were paid.** This amounts to an annualized tax-free
distribution rate per share of 5.26% for Class A shares and 4.97 % for Class B
shares.*** Class C shares, from their introduction on August 15, 1995
through October 31, provided a total return of 3.87%,* and paid tax-free
income dividends of approximately $.129 per share** amounting to an
annualized tax-free distribution rate of 4.64%.***
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, 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 Ohio 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
Since last writing to you in May 1995, we have chosen to focus on those
issues bearing higher degrees of credit quality and broader measures of
liquidity within the context of the Ohio community as well as that of the
market in general. During periods when prospects of an acceleration in
economic activity and a rise in the rate of inflation were perceived by the
bond market, our trading activity sought to emphasize those issues offering
generous levels of tax-free income and limited characteristics of volatility.
At these times, portfolio liquidity was further enhanced by maintaining
higher than normal cash reserve positions in the Series. As economic
statistics began to reveal a moderate rate of growth and a benign
inflationary environment, we sought to increase the Series' duration and
maximize the potential for principal appreciation. During these times,
particular emphasis was placed on securing those issues bearing strong
characteristics of protection from redemption prior to maturity.
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.
Please know that we appreciate greatly your continued confidence in the
Series and 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 or 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-Ohio 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 and C shares at the end of the period.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF INVESTMENTS OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-99.9% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
OHIO--93.1%
Akron, Waterworks System Mortgage Improvement Revenue
6%, 3/1/2014 (Insured; FGIC)............................................ $ 1,000,000 $ 1,031,370
Akron Bath Copley Joint Township Hospital District, Revenue
(Summa Health Systems) 5.75%, 11/15/2008................................ 5,000,000 5,103,050
Akron-Wilbeth Housing Development Corp., First Mortgage Revenue
7.90%, 8/1/2003 (Insured; FHA).......................................... 1,805,000 2,138,979
Allen County, Industrial First Mortgage Revenue, Refunding
6.75%, 11/15/2008 (Guaranteed; K-Mart Corp.)............................ 1,280,000 1,198,938
Anthony Wayne Local School District 5.75%, 12/1/2024 (Insured; FGIC)........ 1,000,000 1,001,970
City of Barberton, Hospital Facilities Revenue
(The Barberton Citizens Hospital Co. Project) 7.25%, 1/1/2012........... 2,400,000 2,587,080
Buckeye Valley Local School District (Delaware County)
5.25%, 12/1/2020 (Insured; MBIA)........................................ 3,140,000 2,994,744
Butler County, Hospital Facilities Revenue, Refunding and Improvement
(Fort Hamilton Hughes Hospital) 7.25%, 1/1/2001......................... 4,000,000 4,099,480
City of Cambridge, HR Refunding (Guernsey Memorial Hospital Project)
8%, 12/1/2006........................................................... 2,000,000 2,168,360
Canton 7.875%, 12/1/2008 (Prerefunded 12/1/1998) (a)........................ 1,000,000 1,114,150
Clermont County, Hospital Facilities Revenue, Refunding (Mercy Health
Systems):
6%, 9/1/2019 (Insured; AMBAC)........................................... 2,000,000 2,052,840
7.50%, 9/1/2019 (Prerefunded 9/1/2001) (Insured; AMBAC) (a)............. 180,000 208,219
City of Cleveland:
COP (Motor Vehicle, Motorized and Communication Equipment)
7.10%, 7/1/2002....................................................... 2,000,000 2,138,440
Parking Facility Improvement Revenue 8%, 9/15/2012...................... 5,000,000 5,362,050
School District 8%, 12/1/2001........................................... 1,675,000 1,958,628
Waterworks First Mortgage Revenue:
5.50%, 1/1/2013 (Insured; MBIA)....................................... 2,660,000 2,678,913
5.50%, 1/1/2021 (Insured; MBIA)....................................... 5,000,000 5,009,750
Cuyahoga County:
Health Care Facilities Revenue (Judson Retirement Community)
8.875%, 11/15/2019.................................................... 3,500,000 3,826,235
HR:
(Meridia Health Systems):
7.25%, 8/15/2019.................................................. 4,715,000 5,043,918
7%, 8/15/2023..................................................... 1,750,000 1,855,175
Refunding:
(Cleveland Clinic Foundation) 8%, 12/1/2015....................... 1,000,000 1,077,290
(Mount Sinai Medical Center) 8.125%, 11/15/2014................... 1,000,000 1,081,370
Jail Facilities 7%, 10/1/2013 (Prerefunded 10/1/2001) (a)............... 6,125,000 7,020,291
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- --------------
OHIO (CONTINUED)
Delaware City School District 5.75%, 12/1/2020 (Insured; FGIC).............. $ 1,000,000 $ 1,002,790
Eaton, IDR Refunding (Baxter International Inc. Project) 6.50%, 12/1/2012... 1,500,000 1,541,265
Euclid City School District 7.10%, 12/1/2011................................ 1,000,000 1,105,120
Village of Evendale, IDR Refunding (Ashland Oil Inc. Project) 6.90%, 11/1/2010 2,000,000 2,104,900
Fairfield City School District, School Improvement Unlimited Tax:
7.20%, 12/1/2011 (Insured; FGIC)........................................ 1,000,000 1,173,660
7.20%, 12/1/2012 (Insured; FGIC)........................................ 1,250,000 1,457,337
6.10%, 12/1/2015 (Insured; FGIC)........................................ 2,000,000 2,076,920
6%, 12/1/2020 (Insured; FGIC)........................................... 2,000,000 2,052,360
Fairlawn, Health Care Facilities Revenue (Village at Saint Edward Project)
8.75%, 10/1/2019........................................................ 2,420,000 2,629,088
Franklin County:
Hospital Improvement Revenue (The Children's Hospital Project) 6.60%, 11/1/2011 1,500,000 1,616,205
HR:
(Holy Cross Health Systems Corp.-Mount Carmel Health)
6.75%, 6/1/2019 (Insured; MBIA)................................... 2,500,000 2,701,875
Refunding Improvement:
(The Children's Hospital Project) 6.60%, 5/1/2013................. 4,000,000 4,199,040
(Worthington Christian Village Congregate Care Project):
10.25%, 8/1/2015................................................ 820,000 896,711
7.80%, 2/1/2017 (Insured; FHA).................................. 5,690,000 6,348,162
Gallia County, Local School District 7.375%, 12/1/2004...................... 570,000 672,395
Greater Cleveland Gateway Economic Development Corp.:
Senior Lien Excise Tax Revenue 6.875%, 9/1/2005 (Insured; FSA).......... 1,500,000 1,670,010
Stadium Revenue 7.50%, 9/1/2005......................................... 5,675,000 6,214,068
Hamilton County:
Hospital Facilities Improvement Revenue, Refunding (Deaconess Hospital)
7%, 1/1/2012.......................................................... 2,570,000 2,752,676
Hospital Facilities Refunding Revenue (Episcopal Retirement Homes, Inc.)
6.80%, 1/1/2008 (LOC; The Fifth Third Bank) (b)....................... 1,450,000 1,588,721
Mortgage Revenue (Judson Care Center) 7.80%, 8/1/2019 (Insured; FHA).... 3,970,000 4,325,950
Sewer Systems Improvement Revenue, Refunding
5.50%, 12/1/2017 (Insured; FGIC)...................................... 5,500,000 5,468,430
Hilliard School District, School Improvement 5.75%, 12/1/2019 (Insured; FGIC) 4,500,000 4,517,235
Kirtland Local School District 7.50%, 12/1/2009............................. 760,000 837,763
Knox County, IDR (Weyerhaeuser Co. Project) 9%, 10/1/2007................... 1,000,000 1,256,650
Lorain County, HR Refunding (EMH Regional Medical Center)
5.375%, 11/1/2021 (Insured; AMBAC)...................................... 4,650,000 4,407,223
Lowellville, Sanitary Sewer Systems Revenue (Browning-Ferris Industries Inc.)
7.25%, 6/1/2006......................................................... 1,300,000 1,397,305
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
OHIO (CONTINUED)
Mahoning County, Health Care Facilities Revenue
(Youngstown Osteopathic Hospital Project)
7.60%, 8/1/2010 (LOC; Marine Midland Bank) (b).......................... $ 3,775,000 $ 4,175,376
Marion County, Health Care Facilities Revenue (United Church Homes Inc.),
Refunding and Improvement 6.375%, 11/15/2010............................ 3,000,000 3,000,990
Miami County, Hospital Facilities Revenue, Refunding
(Upper Valley Medical Center) 8.375%, 5/1/2013.......................... 525,000 561,477
Montgomery County, Water Revenue (Greater Moraine-Beavercreek)
6.25%, 11/15/2012 (Insured; FGIC)....................................... 1,500,000 1,584,165
Moraine, Solid Waste Disposal Revenue (General Motors Corp. Project)
6.75%, 7/1/2014......................................................... 5,000,000 5,635,100
Mount Vernon City School District 5.85%, 12/1/2019 (Insured; FGIC).......... 1,000,000 1,006,370
Muskingum County, Revenue, Refunding (Franciscan Health Advisory Services)
7.50%, 3/1/2012......................................................... 3,185,000 3,308,419
North Royalton City School District 6.10%, 12/1/2019 (Insured; MBIA)........ 2,000,000 2,095,240
State of Ohio:
Economic Development Revenue:
Ohio Enterprise Bond Fund (VSM Corp. Project) 7.375%, 12/1/2011....... 885,000 942,746
(Sponge Inc. Project) 8.375%, 6/1/2014................................ 1,640,000 1,848,067
Mortgage Revenue (Odd Fellows Home Ohio Inc. Project)
8.15%, 8/1/2017 (Insured; FHA)........................................ 350,000 378,833
PCR (Standard Oil Co. Project)
6.75%, 12/1/2015 (Guaranteed; British Petroleum Co. p.l.c.)........... 1,350,000 1,558,953
Ohio Air Quality Development Authority, Revenue:
(Columbus and Southern Power Co. Project)
6.375%, 12/1/2020 (Insured; FGIC)..................................... 2,000,000 2,111,260
Pollution Control:
(Cincinnati Gas and Electric) 10.125%, 12/1/2015 (Prerefunded 12/1/1995) (a) 900,000 927,000
(Pennsylvania Power Co. Project):
5.90%, 5/1/2018 (Insured; AMBAC).................................. 1,500,000 1,511,385
8.10%, 9/1/2018................................................... 1,000,000 1,072,740
Refunding:
(Cleveland Electric Illuminating Co. Project) 6.85%, 7/1/2023..... 5,250,000 5,147,310
(Ohio Edison):
7.45%, 3/1/2016 (Insured; FGIC)................................. 3,500,000 3,909,080
5.625%, 11/15/2029 (Insured; AMBAC)............................. 1,650,000 1,637,575
Refunding:
(Cincinnati Gas Electic) 5.45%, 1/1/2024 (Insured; MBIA).............. 3,000,000 2,921,850
(Dayton Power and Light Co. Project) 6.10%, 9/1/2030.................. 3,500,000 3,552,115
(JMG Funding Limited Partnership Project)
6.375%, 4/1/2029 (Insured; AMBAC)................................. 2,500,000 2,636,650
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
OHIO (CONTINUED)
Ohio Air Quality Development Authority, Revenue (continued):
Refunding (continued):
(Ohio Power Co. Project) 7.40%, 8/1/2009.............................. $ 1,500,000 $ 1,576,140
Ohio Building Authority, State Facilities:
(Adult Correctional) 5.90%, 10/1/2012 (Insured; MBIA)................... 1,000,000 1,038,690
(Juvenile Correctional Projects) 6.60%, 10/1/2014 (Insured; AMBAC)...... 1,660,000 1,818,198
Ohio Capital Corp. for Housing, MFHR Refunding
7.60%, 11/1/2023 (Collateralized; FNMA)................................. 1,250,000 1,338,012
Ohio Higher Educational Facility Community, Revenue
(Case Western Reserve Project):
7.70%, 10/1/2018 (Prerefunded 10/1/1997) (a).......................... 485,000 528,034
7.70%, 10/1/2018...................................................... 15,000 16,331
6%, 10/1/2022......................................................... 1,000,000 1,025,250
(Oberlin College Project) 5.375%, 10/1/2015............................. 1,750,000 1,704,027
Ohio Housing Finance Agency:
Mortgage Revenue (Saint Francis Court Apartment Project)
8%, 10/1/2026 (Insured; FHA).......................................... 695,000 751,886
SFMR (GNMA Mortgage Backed Securities Program):
8.25%, 12/15/2019 .................................................... 175,000 187,294
8.125%, 3/1/2020...................................................... 430,000 461,811
Zero Coupon, 9/1/2021................................................. 18,390,000 2,409,826
7.85%, 9/1/2021....................................................... 2,040,000 2,173,600
7.65%, 3/1/2029....................................................... 5,420,000 5,675,174
7.80%, 3/1/2030....................................................... 3,240,000 3,439,228
Ohio Turnpike Commission, Turnpike Revenue 5.75%, 2/15/2024................. 7,250,000 7,285,597
Ohio Water Development Authority:
Pollution Control Facilities Revenue:
(Cleveland Electric Illuminating Project) 8%, 10/1/2023............... 5,800,000 6,192,892
(Ohio Edison) 8.10%, 10/1/2023........................................ 3,700,000 3,965,142
(Pennsylvania Power Co. Project) 8.10%, 9/1/2018...................... 2,000,000 2,153,920
Refunding:
(Ohio Edison) 7.625%, 7/1/2023.................................... 5,000,000 5,355,750
(Toledo Edison Co.):
7.55%, 6/1/2023................................................. 2,000,000 2,060,640
8%, 10/1/2023................................................... 3,635,000 3,769,241
Revenue (Fresh Water) 5.90%, 12/1/2015 (Insured; AMBAC)................. 4,000,000 4,078,840
Ottawa County, Sanitary Sewer Systems Special Assessment
(Portage-Catawba Island Sewer Project) 7%, 9/1/2011 (Insured; AMBAC).... 1,000,000 1,127,220
Shelby County, Hospital Facilities Revenue, Refunding and Improvement
(The Shelby County Memorial Hospital Association) 7.70%, 9/1/2018....... 2,500,000 2,648,925
South Euclid, Recreation Facilities 7%, 12/1/2011........................... 2,285,000 2,513,477
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
OHIO (CONTINUED)
South Western City School District, (Franklin and Pickway Counties)
5%, 12/1/2013 (Insured; MBIA)........................................... $ 2,825,000 $ 2,659,709
Southwest Regional Water District, Water Revenue:
6%, 12/1/2015 (Insured; MBIA)........................................... 1,600,000 1,654,240
6%, 12/1/2020 (Insured; MBIA)........................................... 1,250,000 1,285,087
Springdale, Hospital Facilities First Mortgage Revenue,
(Southwestern Seniors Services, Inc.):
5.875%, 11/1/2012..................................................... 3,000,000 2,848,950
6%, 11/1/2018......................................................... 1,250,000 1,135,875
Stark County, Refunding 5.70%, 11/15/2017 (Insured; AMBAC).................. 1,675,000 1,680,662
Student Loan Funding Corp.:
Student Loan Revenue, Refunding 7.20%, 8/1/2003......................... 3,150,000 3,362,625
Student Loan Senior Subordinated Revenue 6.15%, 8/1/2010................ 6,775,000 6,931,232
Sylvania City School District 5.75%, 12/1/2022 (Insured; FGIC).............. 1,750,000 1,750,613
University of Cincinnati, COP 6.75%, 12/1/2009 (Insured; MBIA).............. 750,000 834,413
University of Ohio, General Receipts, 5%, 12/1/2018 (Insured; FGIC)......... 1,250,000 1,163,375
University of Toledo, General Reciepts 5.75%, 12/1/2008 (Insured; FGIC)..... 4,000,000 4,153,360
Warren 7.75%, 11/1/2010 (Prerefunded 11/1/2000) (a)......................... 2,785,000 3,267,835
Washington, Water Systems Mortgage Revenue:
5.30%, 12/1/2013 (Insured; AMBAC)....................................... 1,000,000 978,900
5.375%, 12/1/2019 (Insured; AMBAC)...................................... 1,500,000 1,450,785
U.S. RELATED--6.8%
Puerto Rico Highway and Transportation Authority, Highway Revenue
5.45%, 7/1/2007......................................................... 5,500,000 5,438,840
University of Puerto Rico, University Revenue 5.25%, 6/1/2025 (Insured; MBIA) 9,475,000 9,083,683
Virgin Islands Public Finance Authority, Revenue Refunding
Matching Fund Loan Notes 7.25%, 10/1/2018............................... 2,200,000 2,343,088
Virgin Islands Water and Power Authority, Electric Systems Revenue 7.40%, 7/1/2011 3,450,000 3,696,261
-------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $283,633,534)..................................................... $301,302,478
=============
SHORT-TERM MUNICIPAL INVESTMENT--.1%
OHIO;
Montgomery County, IDR (Modern Industrial Plastics Project)
VRDN 4.325% (LOC; Industrial Bank of Japan) (b,c)
(cost $400,000)......................................................... $ 400,000 $ 400,000
=============
TOTAL INVESTMENTS--100.0%
(cost $284,033,534)..................................................... $301,702,478
=============
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation IDR Industrial Development Revenue
COP Certificate of Participation LOC Letter of Credit
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FHA Federal Housing Administration Insurance Corporation
FNMA Federal National Mortgage Association MFHR Multi-Family Housing Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
GNMA Government National Mortgage Association SFMR Single-Family Mortgage Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- -------- ------------------ ------------------
<S> <C> <C> <C>
AAA Aaa AAA 40.0%
AA Aa AA 10.6
A A A 20.7
BBB Baa BBB 19.0
B B B 7.0
F1 MIG1 SP1 .1
Not Rated(e) Not Rated(e) Not Rated(e) 2.6
-------
100.0%
=======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) 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.
(b) Secured by letters of credit.
(c) Security payable on demand. The interest rate, which is subject to
change, is based upon prime rates or an index of market interest rates.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) Securities which, while not rated by Fitch, Moody's or Standard &
Poors have been determined by the Manager to be of comparable quality to
those rated securities in which the Series may invest.
(f) At October 31, 1995, the Series had $78,627,514 (25.7% of net
assets) invested in securities whose payment of principal and interest is
dependent upon revenues generated from health care projects.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $284,033,534)-see statement..................................... $301,702,478
Interest receivable..................................................... 5,921,042
Receivable for shares of Beneficial Interest subscribed................. 144,761
Prepaid expenses........................................................ 9,882
-------------
307,778,163
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $142,777
Due to Distributor...................................................... 80,259
Due to Custodian........................................................ 593,819
Payable for shares of Beneficial Interest redeemed...................... 403,608
Accrued expenses........................................................ 26,638 1,247,101
------------ ---------
NET ASSETS.................................................................. $306,531,062
=============
REPRESENTED BY:
Paid-in capital......................................................... $284,565,059
Accumulated undistributed net realized gain on investments.............. 4,297,059
Accumulated net unrealized appreciation on investments-Note 3........... 17,668,944
-------------
NET ASSETS at value......................................................... $306,531,062
=============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 20,715,790
=============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 2,803,576
=============
- -----
Class C Shares
(unlimited number of $.001 par value shares authorized)............... 80
=============
NET ASSET VALUE per share:
Class A Shares
($269,972,805 / 20,715,790 shares).................................... $13.03
=============
Class B Shares
($36,557,214 / 2,803,576 shares)...................................... $13.04
=============
Class C Shares
($1,043 / 80 shares).................................................. $13.04
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 9,953,790
EXPENSES:
Management fee-Note 2(a).............................................. $ 846,491
Shareholder servicing costs-Note 2(c)................................. 478,316
Distribution fees-Note 2(b)........................................... 87,796
Custodian fees........................................................ 17,056
Prospectus and shareholders' reports.................................. 5,851
Registration fees..................................................... 1,782
Trustees' fees and expenses-Note 2(d)................................. 1,550
Miscellaneous......................................................... 441
----------
TOTAL EXPENSES.................................................... 1,439,283
-----------
INVESTMENT INCOME-NET............................................. 8,514,507
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $4,531,770
Net unrealized appreciation on investments.............................. 5,271,530
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 9,803,300
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $18,317,807
=============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, OHIO 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................................................ $ 17,976,032 $ 8,514,507
Net realized gain (loss) on investments.............................. (231,734) 4,531,770
Net unrealized appreciation (depreciation) on investments for the period (1,447,408) 5,271,530
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 16,296,890 18,317,807
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares..................................................... (16,395,897) (7,629,372)
Class B shares..................................................... (1,580,135) (885,125)
Class C shares..................................................... --- (10)
Net realized gain on investments:
Class A shares..................................................... (737,090) ---
Class B shares..................................................... (80,832) ---
------------- -------------
TOTAL DIVIDENDS................................................ (18,793,954) (8,514,507)
------------- -------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares..................................................... 14,075,586 4,960,087
Class B shares..................................................... 7,880,402 3,648,796
Class C shares..................................................... --- 1,000
Dividends reinvested:
Class A shares..................................................... 11,395,733 5,022,781
Class B shares..................................................... 1,146,894 622,191
Class C shares..................................................... --- 10
Cost of shares redeemed:
Class A shares..................................................... (43,645,693) (21,933,559)
Class B shares..................................................... (3,696,758) (1,615,143)
------------- -------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS. (12,843,836) (9,293,837)
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS...................... (15,340,900) 509,463
NET ASSETS:
Beginning of period.................................................. 321,362,499 306,021,599
------------- -------------
End of period........................................................ $306,021,599 $306,531,062
============= =============
</TABLE>
<TABLE>
<CAPTION>
SHARES
--------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
----------------------------------- -----------------------------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, 1995 APRIL 30, OCTOBER 31, 1995 OCTOBER 31, 1995
1995 (UNAUDITED) 1995 (UNAUDITED) (UNAUDITED)*
----------- ----------------- -------------- ----------------- -------------------
<S> <C> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.......... 1,122,269 385,430 625,670 283,660 79
Shares issued for
dividends reinvested 911,859 390,243 91,754 48,297 1
Shares redeemed...... (3,506,799) (1,705,842) (296,186) (125,322) ---
----------- ----------- ----------- ----------- -----------
NET INCREASE
(DECREASE) IN SHARES
OUTSTANDING.... (1,472,671) (930,169) 421,238 206,635 80
=========== =========== =========== =========== ===========
* From August 15, 1995 (commencement of initial offering) to October 31,
1995.
</TABLE>
See independent accountants' review report and notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OHIO 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
-----------------------------------------------------------------------
SIX MONTHS ENDED
YEAR ENDED APRIL 30, OCTOBER 31, 1995
--------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
------- ------- ------- ------- ------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $11.54 $12.00 $12.35 $13.09 $12.70 $12.62
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net................. .86 .80 .77 .74 .73 .36
Net realized and unrealized gain (loss)
on investments...................... .46 .36 .81 (.36) (.05) .41
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.... 1.32 1.16 1.58 .38 .68 .77
------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net.. (.86) (.80) (.77) (.74) (.73) (.36)
Dividends from net realized gain
on investments...................... .- (.01) (.07) (.03) (.03) .-
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS................. (.86) (.81) (.84) (.77) (.76) (.36)
------ ------ ------ ------ ------ ------
Net asset value, end of period........ $12.00 $12.35 $13.09 $12.70 $12.62 $13.03
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN (1)............... 11.84% 9.97% 13.24% 2.78% 5.63% 12.26%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .21% .52% .70% .81% .92% .87%(2)
Ratio of net investment income to
average net assets.................. 7.20% 6.53% 6.03% 5.57% 5.84% 5.60%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .78% .41% .23% .12% .01% .-
Portfolio Turnover Rate............... 3.00% 13.68% 6.08% 7.73% 39.53% 27.92%(3)
Net Assets, end of period (000's Omitted) $176,223 $243,074 $295,564 $293,706 $273,225 $269,973
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OHIO 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 period indicated. This
information has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
CLASS B SHARES CLASS C SHARES
-------------------------------------------------- -------------------
SIX MONTHS ENDED PERIOD ENDED
YEAR ENDED APRIL 30, OCTOBER 31, 1995 OCTOBER 31, 1995
----------------------------
PER SHARE DATA: 1993(1) 1994 1995 (UNAUDITED) (UNAUDITED)(2)
------- ------- ------- ------------------- -----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $12.69 $13.09 $12.71 $12.63 $12.68
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net................... .20 .66 .66 .33 .13
Net realized and unrealized gain (loss)
on investments........................ .40 (.35) (.05) .41 .36
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS...... .60 .31 .61 .74 .49
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net.... (.20) (.66) (.66) (.33) (.13)
Dividends from net realized gain
on investments........................ .- (.03) (.03) .- .-
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS................... (.20) (.69) (.69) (.33) (.13)
------ ------ ------ ------ ------
Net asset value, end of period.......... $13.09 $12.71 $12.63 $13.04 $13.04
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN (3)................. 16.36%(4) 2.24% 5.06% 11.68%(4) 18.11%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets. 1.17%(4) 1.38% 1.44% 1.41%(4) 1.63%(4)
Ratio of net investment income to
average net assets.................... 4.62%(4) 4.89% 5.29% 5.04%(4) 4.73%(4)
Decrease reflected in above expense ratios due
to undertakings by the Manager........ .13%(4) .10% .01% .- .-
Portfolio Turnover Rate................. 6.08% 7.73% 39.53% 27.92%(5) 27.92%(5)
Net Assets, end of period (000's Omitted) $8,482 $27,657 $32,797 $36,557 $1
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) From August 15, 1995 (commencement of initial offering) to October 31, 1995.
(3) Exclusive of sales load.
(4) Annualized.
(5) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OHIO 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 Ohio 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.
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 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.
(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, OHIO SERIES
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, 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 Fund has an unused capital loss carryover of approximately $232,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1995. If not
applied, the carryover expires in fiscal 2003.
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. There was no expense
reimbursement for the six months ended October 31, 1995.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $425 during the six months ended October 31, 1995 from commissions
earned on sales of the Series' shares.
(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 period ended October 31, 1995,
$87,794 was charged to the Series for the Class B shares and $2 was charged
to the Series for 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 in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. For the period ended October 31, 1995,
$340,871, $43,897 and $1 were charged to Class A, Class B and Class C 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.
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $114,311,538 and $124,061,372, respectively, for the six months
ended October 31, 1995, and consisted entirely of long-term and short-term
municipal investments.
At October 31, 1995, accumulated net unrealized appreciation on
investments was $17,668,944, consisting of $18,123,982 gross unrealized
appreciation and $455,038 gross unrealized depreciation.
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, OHIO SERIES
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Premier State Municipal Bond Fund,
Ohio 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 for the year ended
April 30, 1995 and financial highlights for each of the five years in the
period ended 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 and Young LLP signature logo]
New York, New York
December 7, 1995
[Dreyfus lion "d" logo]
PREMIER STATE MUNICIPAL
BOND FUND, OHIO 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. 057/619/689SA9510
[Dreyfus logo]
Semi-Annual Report
Premier State
Municipal Bond Fund
Ohio Series
October 31, 1995
