DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of the Dreyfus Premier State
Municipal Bond Fund _ New Jersey Series, since July 31, 1996, for the period
ended April 30, 1997 as shown in the following table:
ANNUALIZED
TOTAL RETURN* DISTRIBUTION RATE**
_______________ ____________________
Class A................ 3.18% 4.18%
Class B................ 2.80% 3.89%
Class C................ 2.78% 3.64%
ECONOMIC REVIEW
The U.S. economy just kept rolling ahead over the reporting period.
Inflation remained subdued. The unemployment rate fell to its lowest level
in 24 years, and a surge in tax revenues meant good news for the
Administration's budget reduction program. Overall, the economic news has
been stellar.
The economy grew at a robust 5.6% annual rate during the first quarter,
the best quarter in nine years. Aided by falling energy prices, and with no
sign of shortages of raw materials, inflation remained in check. On the
consumer level, the Consumer Price Index (CPI) remained below 3%. Excluding
volatile food and energy prices, the CPI is slowing down so far this year,
running at an annual rate of 2.5%. Inflation has been further restrained by
the strong dollar which has moderated the price of imports and eased
potential strains on domestic production capacity.
The strong economy has put an increasing number of people to work. This
tightening of the labor market has been a key factor in the implementation of
monetary policy by the Federal Reserve Board's Open Market Committee (FOMC).
The unemployment rate has been less than 5.5% since June 1996, the lowest
sustained rate since the late 1980s. The rate fell to 4.9% in April of this
year, its lowest level in 24 years. So far, neither strong economic growth
nor wage increases have resulted in any price pressure at the consumer level.
Through the first quarter (the latest available data), total employment costs
(including wages and benefits) rose about the same as inflation.
Renewed confidence, spurred by increasing job security and low
inflation, has resulted in a surge in consumer spending. In the first quarter
of the year, spending rose 6.4%, almost double the rate of the previous
year's fourth quarter. The combined six-month performance was the largest
increase in consumer spending over the past ten years. Retail sales have
spurted in the early part of this year as well; first quarter results were
sharply higher than in the last quarter of 1996. Not surprisingly, industrial
production has been building momentum over the reporting period. The latest
report on capacity utilization indicated the highest level in two years. So
far, while the potential exists for production bottlenecks, prices for raw
materials and worker wage demands have remained modest.
Continued economic growth and the resulting rise in tax revenues have
slashed further the Federal budget deficit. Administration officials estimate
that this fiscal year's deficit will be about $75 billion, its lowest level
in 23 years. Such good news on the deficit could make it easier to negotiate
the Administration's bipartisan plan to balance the budget by 2002.
While we seem to be enjoying the best of all possible economic worlds,
the potential for future inflation is what concerns the Fed. Such concern
resulted in the March decision by the FOMC, the policy-making arm of the
Federal Reserve, to raise the Federal Funds rate one quarter of a percentage
point to 5.50%. (The Federal Funds rate is the rate of interest banks charge
each other for overnight loans.) The traditional assumption that strong
economic growth and low unemployment will eventually result in rising
inflation still drives the Fed's monetary policy initiatives. There is little
reason to suspect that the Fed will soon change this policy.
MARKET ENVIRONMENT
Despite the assumption of a twenty-five basis point rate hike
incorporated into most long-term securities in advance of the Federal Reserve
meeting on March 25, prices of those securities actually fell an additional
twenty-five basis points after the announcement, reaching a 7.17% yield on
the thirty-year Treasury bellwether bond on April 17. Due to good
inflation data, the market later recovered to the 6.85% level, and then
retreated to a 7.00% yield, after the FOMC, at its meeting on May 20, decided
to hold short-term rates steady. This action normally would have encouraged
higher prices, but has instead generated some price erosion.
The volatility in the general fixed income market belies the remarkable
stability of the municipal bond market. Since February 15, the thirty-year
Treasury bond has corrected by nearly forty basis points. By comparison,
municipal bond futures are off only one and three-quarters points and cash
securities (the bonds themselves) are flat to off one point. This substantial
outperformance by municipals has led to municipal/Treasury yield ratios which
are as low as have been seen in over two years.
PORTFOLIO OVERVIEW
On April 3, 1997, the Premier Insured Municipal Bond Fund _ New Jersey
Series became the Premier State Municipal Bond Fund _ New Jersey Series. The
Series' fiscal year-end changed from July to April. The Fund is no longer
limited to investing only in AAA securities which often are lower-yielding
and priced in the marketplace as commodities. The Fund has expanded its
holdings to different kinds of securities which together seek to create
increased diversification, safety, and a higher yield.
Your portfolio is made up of securities that are indicative of the
relative stability of municipals compared to their taxable counterparts. Many
new issue purchases and existing holdings are slightly shorter than the
traditional maturity range to enable the Fund to maintain a competitive yield
while reducing potential volatility should interest rates change. Over the
reporting period the Fund was comprised of many securities with 6% or greater
coupons for added stability and income, as well as some 5% to 5-1/4% coupon
securities for potential price performance. These barbell strategy-oriented
securities provide balance and liquidity, and are in especially high demand
by retail and institutional investors. This strategy continues to be utilized
due to its success over the past year.
While there are many strategies at work in the Fund, one of the central
themes continues to be emphasizing income. Since August, the Bond Buyer
Revenue Bond Index has varied only 15 basis points above or below 5.95%. This
narrow range indicator and the expectation of its continuation provide little
impetus to make changes to that theme. However, we continue to evaluate the
potentially changing financial landscape and stand ready to adjust our
positions accordingly.
Enclosed please find a copy of the recent portfolio holdings for your
review.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 16, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, and does not take into consideration the maximum initial sales charge
in the case of Class A shares or the contingent deferred sales charge imposed
on redemptions in the case of Class B and Class C shares.
** Distribution rate per share is based upon dividends per share paid from
net investment income during the period (annualized), divided by the maximum
offering price at the end of the period in the case of Class A shares, or the
net asset value per share in the case of Class B and Class C shares, adjusted
for capital gain distributions. Some income may be subject to the Federal
Alternative Minimum Tax (AMT) for certain shareholders.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES APRIL 30, 1997
[Exhibit A]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER STATE
MUNICIPAL BOND FUND,
NEW JERSEY SERIES CLASS A SHARES AND CLASS B SHARES AND THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX
$12,276
Lehman Brothers
Municipal Bond Index*
Dollars
$11,394
Dreyfus Premier State
Municipal Bond Fund,
New Jersey Series
(Class B Shares)
$11,333
Dreyfus Premier State
Municipal Bond Fund,
New Jersey Series
(Class A Shares)
*Source: Lehman Brothers
[Exhibit A]
<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 4/30/97 Sales Charge Sales Charge (4.5%) PERIOD ENDED 4/30/97 Redemption Redemption*
__________ ________________ ____________________ _____________________ ____________ __________________
<S> <C> <C> <C> <C> <C>
1 Year 5.86% 1.13% 1 Year 5.34% 1.34%
From Inception (5/3/94) 5.87 4.26 From Inception (5/3/94) 5.35 4.44
CLASS C SHARES
__________________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
PERIOD ENDED 4/30/97 No Redemption Redemption**
_________ _______________ ____________________
1 Year 5.19% 4.19%
From Inception (12/4/95) 1.38 1.38
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the Class A
shares and Class B shares of Dreyfus Premier State Municipal Bond Fund, New
Jersey Series on 5/3/94 (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 4/30/94 is used as the beginning value on 5/3/94.
All dividends and capital gain distributions are reinvested. Performance for
Class C shares will vary from the performance of both Class A and Class B
shares shown above due to differences in charges and expenses.
The Series invests primarily in New Jersey municipal securities and its
performance shown in the line graph takes into account the maximum initial
sales charge on Class A shares and the maximum contingent deferred sales
charge on Class B 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 and is not limited to investments principally in New Jersey
municipal obligations. 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.
* The maximum contingent deferred sales charge for Class B shares is 4% and
is reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
STATEMENT OF INVESTMENTS APRIL 30, 1997
Principal
Long-Term Municipal Investments_100.0% Amount Value
_____________ _____________
New Jersey_85.4%
Camden County Improvement Authority, Revenue (Health Care Redevelopment
Project_Cooper Health System Obligation Group)
5.875%, 2/15/2015......................................................... $ 500,000 $ 486,935
Camden County Municipal Utilities Authority, Sewer Revenue, Refunding
5.125%, 7/15/2017 (Insured; FGIC) (a)..................................... 650,000 611,000
Camden County Pollution Control Financing Authority, Solid Waste Disposal
and Resource Recovery System Revenue
7.50%, 12/1/2009.......................................................... 500,000 510,040
Mercer County Improvement Authority, Solid Waste Revenue, Refunding
6.70%, 4/1/2013 (Insured; FGIC) (Prerefunded 5/15/1997) (b)............... 500,000 500,610
New Jersey Building Authority, State Building Revenue, Refunding
5%, 6/15/2015............................................................. 150,000 137,190
New Jersey Economic Development Authority, Water Facilities Revenue
(New Jersey American Water Co. Inc. Project)
6.50%, 4/1/2022 (Insured; FGIC)........................................... 500,000 520,405
New Jersey Educational Facilities Authority, Revenue, Refunding
(Trenton State College) 6%, 7/1/2019 (Insured; AMBAC)..................... 500,000 507,945
New Jersey Health Care Facilities Financing Authority, Revenue:
(Deborah Heart and Lung Center) 6.20%, 7/1/2013........................... 500,000 506,235
(General Hospital Center at Passaic) 6.75%, 7/1/2019 (Insured; FSA)....... 550,000 597,168
Refunding:
(Holy Name Hospital Issue) 6%, 7/1/2025................................. 500,000 494,855
(Saint Elizabeth Hospital Obligation Group) 6%, 7/1/2020................ 2,225,000 2,220,082
New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue
6.05%, 10/1/2028 (Insured; MBIA).......................................... 500,000 498,125
Passaic County Utilities Authority, Solid Waste System Revenue
7%, 11/15/2007............................................................ 575,000 579,738
Port Authority of New York and New Jersey:
5.20%, 7/15/2016 (Insured; AMBAC)......................................... 500,000 475,530
Special Obligation Revenue, Special Project
(JFK International Air Terminal) 5.75%, 12/1/2022 (Insured; MBIA) (c)... 585,000 572,317
Salem County Industrial Pollution Control Financing Authority, Revenue
(Public Service Electric and Gas) 5.45%, 2/1/2032 (Insured; MBIA)......... 500,000 461,010
South Jersey Transportation Authority, LR
(Raytheon Aircraft Service Inc. Project) 6.15%, 1/1/2022.................. 500,000 501,270
Union County Utilities Authority, Solid Waste Revenue
7.10%, 6/15/2006.......................................................... 1,625,000 1,676,658
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ ____________
U.S. Related_14.6%
Puerto Rico Housing Bank and Finance Agency, SFMR
6.25%, 4/1/2029........................................................... $ 500,000 $ 506,230
Puerto Rico Ports Authority, Special Facility Revenue
(American Airlines) 6.30%, 6/1/2023....................................... 1,500,000 1,516,065
___________
TOTAL INVESTMENTS (cost $13,755,519)........................................ $13,879,408
=============
Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
LR Lease Revenue
Summary of Combined Ratings (Unaudited)
Fitch (d) or Moody's or Standard & Poor's Percentage of Value
____ ________ _________________ _____________________
AAA Aaa AAA 37.6%
AA Aa AA 1.0
A A A 15.8
BBB Baa BBB 41.4
BB Ba BB 4.2
________
100.0%
Notes to Statement of Investments:
(a) Wholly held by custodian as collateral for delayed-delivery
security.
(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) Purchased on a delayed-delivery basis.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) At April 30, 1997, the Fund had $4,305,275 (31.8% of net assets)
invested in securities whose payment of principal and interest is
dependent upon revenues generated from health care projects.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997
Cost Value
_____________ ____________
ASSETS: Investments in securities_See Statement of Investments $13,755,519 $13,879,408
Cash....................................... 73,909
Receivable for shares of Beneficial Interest subscribed 466,867
Interest receivable........................ 245,393
Prepaid expenses........................... 28,511
_______________
14,694,088
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 7,036
Due to Distributor......................... 6,167
Payable for investment securities purchased 1,066,465
Payable for shares of Beneficial Interest redeemed 53,403
Accrued expenses........................... 42,946
_______________
1,176,017
_______________
NET ASSETS.................................................................. $13,518,071
===============
REPRESENTED BY: Paid-in capital............................ $13,360,533
Accumulated net realized gain (loss) on investments 33,649
Accumulated net unrealized appreciation (depreciation)
...... on investments_Note 4 123,889
_______________
NET ASSETS.................................................................. $13,518,071
===============
NET ASSET VALUE PER SHARE
_________________________________
Class A Class B Class C
_______________ _______________ _______________
Net Assets........................................ $4,836,573 $8,680,366 $1,132
Shares Outstanding..................................... 382,923 687,235 89.516
NET ASSET VALUE PER SHARE............................... $12.63 $12.63 $12.64
====== ======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
STATEMENT OF OPERATIONS
Nine Months Ended Year Ended
April 30, 1997* July 31, 1996
____________________ ____________________
INVESTMENT INCOME
INCOME Interest Income.......................... $571,482 $767,023
____________________ ____________________
EXPENSES: Management fee_Note 3(a).................. $ 56,351 $ 74,073
Shareholder servicing costs_Note 3(c)..... 37,814 52,216
Distribution fees_Note 3(b)............... 32,769 41,682
Registration fees......................... 9,334 3,996
Auditing fees............................. 6,543 14,745
Prospectus and shareholders' reports...... 6,290 2,861
Legal fees................................ 5,950 4,204
Trustees' fees and expenses_Note 3(d)..... 1,604 1,781
Custodian fees............................ 1,359 1,987
Loan commitment fees_Note 2............... 78 ___
Miscellaneous............................. 6,865 8,036
____________________ ____________________
Total Expenses...................... 164,957 205,581
Less_reduction in management fee due to
undertaking_Note 3(a)................. (9,656) (10,732)
____________________ ____________________
Net Expenses........................ 155,301 194,849
____________________ ____________________
INVESTMENT INCOME_NET...................................................... 416,181 572,174
____________________ ____________________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments... $ 46,136 $150,113
Net unrealized appreciation (depreciation)
on investments........................ (39,245) (76,768)
____________________ ____________________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS..................... 6,891 73,345
____________________ ____________________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................... $423,072 $645,519
==================== ====================
* The Fund has changed its fiscal year end from July 31 to April 30.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
STATEMENT OF CHANGES IN NET ASSETS
Nine Months Ended Year Ended Year Ended
April 30, 1997* July 31, 1996 July 31, 1995
__________________ ______________ ________________
OPERATIONS:
Investment income_net.......................... $ 416,181 $ 572,174 $ 371,134
Net realized gain (loss) on investments................... 46,136 150,113 (5,270)
Net unrealized appreciation (depreciation) on investments. (39,245) (76,768) 221,333
_______________ ____________ ______________
Net Increase (Decrease) in Net Assets
Resulting from Operations 423,072 645,519 587,197
_______________ ____________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Class A shares.......................................... (161,823) (234,320) (176,046)
Class B shares.......................................... (254,207) (337,766) (195,088)
Class C shares........................................ (151) (88) ____
Net realized gain on investments:
Class A shares.......................................... (55,413) ____ ____
Class B shares.......................................... (101,848) ____ ____
Class C shares.......................................... (69) ____ ____
_______________ ____________ ______________
Total Dividends....................................... (573,511) (572,174) (371,134)
_______________ ____________ ______________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares..................................... 294,836 977,750 3,591,050
Class B shares..................................... 1,349,856 3,045,391 5,060,548
Class C shares.......................................... 18 6,000 ____
Dividends reinvested:
Class A shares.................................... 134,012 134,625 97,360
Class B shares...................................... 209,733 176,239 81,648
Class C shares.......................................... 203 88 ____
Cost of shares redeemed:
Class A shares......................................... (746,605) (927,041) (1,128,148)
Class B shares.......................................... (1,696,406) (1,191,057) (776,686)
Class C shares.......................................... (5,000) ____ ____
_______________ ____________ ______________
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions.................... (459,353) 2,221,995 6,925,772
_______________ ____________ ______________
Total Increase (Decrease) in Net Assets............. (609,792) 2,295,340 7,141,835
NET ASSETS:
Beginning of Period................................... 14,127,863 11,832,523 4,690,688
_______________ ____________ ______________
End of Period.................................. $13,518,071 $14,127,863 $11,832,523
=============== ============= ================
*The Fund has changed its fiscal year end from July 31 to April 30.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
__________________________________________________________
Nine Months Ended Year Ended Year Ended
CAPITAL SHARE TRANSACTIONS: April 30, 1997(1) July 31, 1996 July 31, 1995
__________________ ______________ ________________
Class A
________
Shares sold...................................... 23,143 76,280 291,207
Shares issued for dividends reinvested.............. 10,476 10,439 7,845
Shares redeemed.......................................... (58,150) (71,136) (91,442)
__________________ ______________ ______________
Net Increase (Decrease) in
Shares Outstanding (24,531) 15,583 207,610
================== ============== ==============
Class B
________
Shares sold............................................. 106,673 236,936 406,583
Shares issued for dividends reinvested............. 16,392 13,678 6,544
Shares redeemed.......................................... (132,446) (93,155) (62,636)
__________________ ______________ ______________
Net Increase (Decrease) in
Shares Outstanding (9,381) 157,459 350,491
================== ============== ==============
Class C(2)
_________
Shares sold.............................................. 1 466 ___
Shares issued for dividends reinvested................ 16 7 ___
Shares redeemed.......................................... (401) ___ ___
__________________ ______________ ______________
Net Increase (Decrease) in
Shares Outstanding (384) 473 ___
================== ============== ==============
(1) The Fund has changed its fiscal year end from July 31 to April 30.
(2) From December 4, 1995 (commencement of initial offering) to July 31, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY 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 Fund's financial statements.
Class A Shares
______________________________________________________________
Nine Months Ended Year Ended July 31,
___________________________________
PER SHARE DATA: April 30, 1997(1) 1996 1995 1994(2)
__________________ ________ ________ ________
Net asset value, beginning of period........... $12.79 $12.71 $12.58 $12.50
_______ ________ ________ ________
Investment Operations:
Investment income_net........................... .42 .59 .71 .18
Net realized and unrealized gain (loss)
on investments.................................. (.02) .08 .13 .08
_______ ________ ________ ________
Total from Investment Operations............... .40 .67 .84 .26
_______ ________ ________ ________
Distributions:
Dividends from investment income_net............. (.42) (.59) (.71) (.18)
Dividends from net realized gain on investments... (.14) __ __ __
_______ ________ ________ ________
Total Distributions............................... (.56) (.59) (.71) (.18)
_______ ________ ________ ________
Net asset value, end of period.................... $12.63 $12.79 $12.71 $12.58
======= ======= ======== =========
TOTAL INVESTMENT RETURN(3)......................... 4.25%(4) 5.31% 7.01% 2.07%(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets....... 1.20%(4) 1.14% .10% __
Ratio of net investment income
to average net assets....................... 4.39%(4) 4.55% 5.60% 5.25%(4)
Decrease reflected in above expense ratios
due to undertakings by the Manager
(limited to the expense limitation provision
of the management agreement).......................... .10%(4) .08% 1.35% 2.50%(4)
Portfolio Turnover Rate................... 110.12%(5) 28.14% 43.48% __
Net Assets, end of period (000's Omitted)......... $4,837 $5,212 $4,981 $2,318
(1) The Fund has changed its fiscal year end from July 31 to April 30.
(2) From May 4, 1994 (commencement of operations) to July 31, 1994.
(3) Exclusive of sales load.
(4) Annualized.
(5) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY 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 Fund's financial statements.
Class B Shares
______________________________________________________________
Nine Months Ended Year Ended July 31,
___________________________________
PER SHARE DATA: April 30, 1997(1) 1996 1995 1994(2)
__________________ ________ ________ ________
Net asset value, beginning of period............. $12.79 $12.71 $12.58 $12.50
_______ ________ ________ ________
Investment Operations:
Investment income_net............................. .37 .52 .65 .16
Net realized and unrealized gain (loss)
on investments.................................. (.02) .08 .13 .08
_______ ________ ________ ________
Total from Investment Operations.................. .35 .60 .78 .24
_______ ________ ________ ________
Distributions:
Dividends from investment income_net.............. (.37) (.52) (.65) (.16)
Dividends from net realized gain on investments... (.14) __ __ __
_______ ________ ________ ________
Total Distributions............................... (.51) (.52) (.65) (.16)
_______ ________ ________ ________
Net asset value, end of period.................... $12.63 $12.79 $12.71 $12.58
======= ======= ======== =========
TOTAL INVESTMENT RETURN(3)............................ 3.74%(4) 4.79% 6.48% 1.94%(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........ 1.69%(4) 1.63% .61% .50%(4)
Ratio of net investment income
to average net assets........................... 3.88%(4) 4.04% 5.00% 4.69%(4)
Decrease reflected in above expense ratios
due to undertakings by the Manager
(limited to the expense limitation provision
of the management agreement).......................... .09%(4) .08% 1.29% 2.50%(4)
Portfolio Turnover Rate........................... 110.12%(5) 28.14% 43.48% __
Net Assets, end of period (000's Omitted)... $8,680 $8,910 $6,852 $2,373
(1) The Fund has changed its fiscal year end from July 31 to April 30.
(2) From May 4, 1994 (commencement of operations) to July 31, 1994.
(3) Exclusive of sales load.
(4) Annualized.
(5) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY 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 Fund's financial statements.
Class C Shares
_____________________________________________
Year Ended
Nine Months Ended July 31,
PER SHARE DATA: April 30, 1997(1) 1996(2)
________________ ____________
Net asset value, beginning of period................................... $12.78 $13.21
________ ________
Investment Operations:
Investment income_net............................................... .35 .32
Net realized and unrealized gain (loss)
on investments....................................................... __ (.43)
________ ________
Total from Investment Operations...................................... .35 (.11)
________ ________
Distributions:
Dividends from investment income_net................................. (.35) (.32)
Dividends from net realized gain on investments...................... (.14) __
________ ________
Total Distributions..................................................... (.49) (.32)
________ ________
Net asset value, end of period.......................................... $12.64 $12.78
========= ===========
TOTAL INVESTMENT RETURN(3).................................................. 3.72%(4) (1.21%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................. 1.97%(4) 1.95%(4)
Ratio of net investment income
to average net assets................................................. 3.62%(4) 3.68%(4)
Decrease reflected in above expense ratios
due to undertakings by the Manager
(limited to the expense limitation provision
of the management agreement)...................................... .76%(4) .02%(4)
Portfolio Turnover Rate........................................ 110.12%(5) 28.14%
Net Assets, end of period (000's Omitted)............................... $1 $6
(1) The Fund has changed its fiscal year end from July 31 to April 30.
(2) From December 4, 1995 (commencement of initial offering) to July 31, 1996.
(3) Exclusive of sales load.
(4) Annualized.
(5) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
NOTES TO FINANCIAL STATEMENTS
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier State Municipal Bond Fund (the "Trust") 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 thirteen series, including the New Jersey Series (the
"Fund"). 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 (the "Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
On October 31, 1996, the Board Members of the Trust approved, subject to
approval by the shareholders of the New Jersey Series of Dreyfus Premier
Insured Municipal Bond Fund ("DPIMBF-New Jersey Series"), an Agreement and
Plan of Reorganization providing for the transfer of all or substantially all
of the DPIMBF-New Jersey Series' assets and liabilities to the Fund in a tax
free exchange for shares of beneficial interest of the Fund, and the
assumption by the Fund of stated liabilities (the "Exchange"). The Exchange
was approved by the shareholders of DPIMBF-New Jersey Series on March 10,
1997, and was consummated after the close of business on April 1, 1997, at
which time 380,977 Class A shares valued at $12.48 per share, 651,905 Class B
shares valued at $12.48 per share and 89 Class C shares valued at $12.49 per
share, representing combined net assets of $12,888,744, were exchanged by
DPIMBF-New Jersey Series for the respective Class A, Class B and Class C
shares of the Fund.
The Fund was declared effective by the SEC on December 16, 1996. On
January 8, 1997, the Trust's Trustees approved a change to the Trust's name
from "Premier State Municipal Bond Fund" to "Dreyfus Premier State Municipal
Bond Fund" which change became effective March 31, 1997.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue an unlimited number of
$.001 par value shares in the following classes of shares: 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 ("CDSC") imposed on Class B share redemptions made within six
years of purchase (five years for shareholders beneficially owning Class B
shares on November 30, 1996) and Class C shares are subject to a CDSC imposed
on Class C shares redeemed within one year of purchase. Other differences
between the classes include the services offered to and the expenses borne by
each class and certain voting rights.
The Trust accounts separately for the assets, liabilities and operations
of each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
The Fund has changed its fiscal year end from July 31 to April 30.
(a) Portfolio valuation: Investments in securities (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
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 Fund 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 Fund.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Series may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2_BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended April
30, 1997, the Fund did not borrow under the Facility.
NOTE 3_MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to a management agreement with the Manager, the management
fee is computed at the annual rate of .55 of 1% of the value of the Fund's
average daily net assets and is payable monthly. The Manager has undertaken
from August 1, 1996 through April 30, 1998, to reduce the management fees
paid by the Fund, to the extent that the Fund's aggregate annual expenses
(excluding 12b-1 distribution plan fees, taxes, brokerage, interest on
borrowings and extraordinary expenses) exceed an annual rate of 1.25% of the
value of the Fund's average daily net assets. The reduction in management
fee, pursuant to the undertaking, amounted to $9,656 during the period ended
April 30, 1997.
(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's 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 April 30, 1997,
$32,737 was charged to the Fund for the Class B shares and $32 was charged to
the Fund for the Class C shares.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(c) Under the Shareholder Services Plan, the Fund 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 Fund 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. During the period ended April 30, 1997,
$9,235, $16,369 and $10 were charged to Class A, B and C shares, respectively,
by the Distributor pursuant to the Shareholder Services Plan.
The Fund 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 Fund. Such
compensation amounted to $5,132 during the period ended April 30, 1997.
(d) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Trust 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 4_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1997
amounted to $14,793,924 and $14,067,222 respectively.
At April 30, 1997, accumulated net unrealized appreciation on investments
was $123,889, consisting of $170,412 gross unrealized appreciation and
$46,523 gross unrealized depreciation.
At April 30, 1997, 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).
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus Premier State Municipal Bond Fund, New Jersey Series
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier State Municipal
Bond Fund, New Jersey Series (one of the Funds constituting the Dreyfus
Premier State Municipal Bond Fund) as of April 30, 1997, and the related
statement of operations for the nine months ended April 30, 1997 and for the
year ended July 31, 1996, the statement of changes in net assets for the nine
months ended April 30, 1997 and for each of the two years in the period ended
July 31, 1996, and financial highlights for each of the periods 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 and financial highlights. Our procedures included
confirmation of securities owned as of April 30, 1997 by correspondence with
the custodian and brokers. 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 Dreyfus Premier State Municipal Bond Fund, New Jersey Series at
April 30, 1997, the results of its operations for the nine months ended April
30, 1997 and for the year ended July 31, 1996, the changes in its net assets
for the nine months ended April 30, 1997 and for each of the two years in the
period then ended July 31, 1996, and the financial highlights for each of the
indicated periods, in conformity with generally accepted accounting
principles.
[Ernst & Young LLP signature logo]
New York, New York
June 5, 1997
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended April 30, 1997:
_ all the dividends paid from investment income_net are "exempt-interest
dividends" (not generally subject to regular Federal and, for individuals who
are New Jersey residents, New Jersey personal income taxes), and
_ the Fund hereby designates $.0114 per share as a long-term capital gain
distribution of the $.1445 per share paid on December 5, 1996.
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1997 calendar year
on Form 1099-DIV which will be mailed by January 31, 1998.
DREYFUS PREMIER STATE MUNICIPAL
BOND FUND, NEW JERSEY 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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 380/381AR974
Annual Report
Dreyfus Premier State
Municipal Bond Fund
New Jersey Series
April 30, 1997
[lion2 hres logo]
Registration Mark
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY
SERIES CLASS A SHARES AND CLASS B SHARES AND THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
DREYFUS DREYFUS
PREMIER PREMIER
STATE STATE
MUNICIPAL MUNICIPAL
BOND FUND, BOND FUND,
LEHMAN NEW JERSEY NEW JERSEY
PERIOD BROTHERS SERIES SERIES
MUNICIPAL (CLASS A (CLASS B
BOND INDEX * SHARES) SHARES)
5/3/94 10,000 9,549 10,000
4/30/95 10,665 10,142 10,569
4/30/96 11,513 10,706 11,101
4/30/97 12,276 11,333 11,394
*Source: Lehman Brothers
