DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Premier State Municipal
Bond Fund -- Georgia Series for the six-month reporting period ended October 31,
1998 as shown in the following table:
<TABLE>
Annualized
Total Return* Distribution Rate**
___________ ________________
<S> <C> <C>
Class A shares . . . . . . . . . . . . . . . . . . . . 5.29% 4.12%
Class B shares . . . . . . . . . . . . . . . . . . . . 5.04% 3.85%
Class C shares . . . . . . . . . . . . . . . . . . . . 4.75% 3.30%
</TABLE>
THE ECONOMY
In the face of soaring consumer confidence and strong first-quarter economic
growth, the Federal Reserve Board (the "Fed") earlier this year refrained from
increasing interest rates, partially to avoid further roiling international
financial markets. In addition, the Fed evidently felt then that the economic
slowdown overseas might curtail the U.S. economy to some degree, which would
alleviate the need for monetary restraint. The Fed's expectations have proven to
be true, and its judgment accurate. The U.S. balance of trade has worsened and
there have been increasing signs of a slowdown in export-related industries. On
September 29, concerns about a weakening U.S. economy caused the Federal Open
Market Committee (the F.O.M.C., the policy-making arm of the Fed) to pare the
Federal Funds target rate by 25 basis points, the first reduction since January
1996. (The Federal Funds rate is the rate of interest that banks charge each
other for overnight loans.) At that point, Fed Chairman Alan Greenspan described
the economic outlook for the United States as having "weakened measurably." Two
weeks later, on October 15, the F.O.M.C. again reduced its target rate by an
additional 25 basis points, putting the Federal Funds rate at 5.0%.
Despite the concerns of the Fed regarding an economic slowdown, aggregate
economic statistics showed a growing and resilient economy during the reporting
period. Low unemployment and negligible inflation, combined with car makers
rebuilding inventory after a long strike and rising consumer incomes, resulted
in solid economic growth (3.3% ) for the third quarter of this year. While a
significant portion of this gain was due to inventory replenishment after the
automobile strike, the overall results were still an improvement over
second-quarter economic growth of 1.8%. Inflation as measured by the Consumer
Price Index remained at levels not witnessed since 1963.
The Fed' s responsibility is to enact monetary policy that anticipates future
economic conditions. The U.S. trade deficit has continued to widen because of
the global economic slide. Slumping exports have weakened manufacturing activity
since midyear and there is concern that this slackness could become more
pronounced and widen into other sectors of the economy. While the increase in
imports also restrains domestic production, it has helped contain inflation as
well, since domestic producers are reluctant to raise prices. This provides
additional flexibility for the Fed to lower interest rates still further. So
far, economic problems overseas have not caused any measurable reaction in the
U.S. labor market. Only the growth rate in new jobs has eased from its torrid
pace earlier in the year. The unemployment rate has remained near 30-year lows
and worker inflation-adjusted take-home pay has been rising. The condition of
the labor market is a key determinant of consumer confidence which, of course,
relates directly to consumer spending, a force that accounts for two thirds of
all economic activity. Business spending has shown signs of weakness, so the
role of the consumer will be of even greater importance in the future. It is
significant that measures of consumer confidence have receded from earlier
record high levels, largely because of concerns about the volatility of
financial markets.
MARKET ENVIRONMENT
In general, fixed-income securities have traded in a downward-spiked pattern
since appreciating dramatically and topping in mid-October. Market participants
have been greatly influenced by the overall trend to purchase what are perceived
to be safer securities (For example, U.S. Treasury notes and bonds), which is
mainly inspired by the Asian economic crisis. This crisis, and that of other
countries, has prompted expectations of domestic economic contraction, creating
the perception that bonds whose credit quality is dependent on the business
cycle are vulnerable. Therefore, many securities, such as corporate, mortgage,
asset backed, or project related bonds, have traded off in this period.
Currently, the expectation is that the interest rate spreads between these types
of securities and Treasuries will remain wide. Additionally, the recent
exaggerated nature of short-term price performance (both up and down) was
greatly influenced by the financial problems of leveraged hedge funds and the
quick response by the Federal Reserve. The municipal market focused on these
trends, and its participants initially benefited from the same direction, though
not to the same level of appreciation, as the Treasury bond markets.
Correspondingly, municipals outperformed Treasuries in the market's recent
downward price adjustment, retaining more of their value.
PORTFOLIO OVERVIEW
At the outset of the six-month period which ended October 31, 1998, the
Dreyfus Premier State Municipal Bond Fund -- Georgia Series was actively selling
both 5% and 5.25% coupons. The purpose of this activity was aimed at managing
the volatility that was present in the municipal market. We felt that attempting
to predict precisely the timing of the ebb and flow of these market changes
would be difficult at best. Instead, we focused our efforts on shortening the
Series' average maturity by selling a modest portion of long maturity discount
bonds and zero coupon bonds, with long maturities and purchasing higher coupon
municipal securities.
By late summer, the Series was being managed utilizing a more conservative
approach in order to balance recurring volatility in the municipal bond market
with the ongoing objective of obtaining value. The Series is currently well
balanced across the coupon range. While it is entirely possible that the market
may again see periods of volatility, the bond market is currently gaining
positive momentum. We have been monitoring this shift and have made appropriate
adjustments to the Series.
Our primary tasks, which guide our portfolio management decisions, are to earn
a high level of current income to the extent consistent with the preservation of
capital while maintaining the Series' high credit quality. Included in this
report is a series of detailed statements outlining the Series' holdings and
financial condition. We hope they are informative. Please know that we greatly
appreciate your continued confidence in the Series and The Dreyfus Corporation.
Sincerely,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 16, 1998
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 applicable deferred sales charge imposed on
redemptions in the case of Class B and Class C shares. Income may be subject to
state and local income taxes for non-Georgia residents.
**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 per share 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. Some
income may be subject to the Federal Alternative Minimum Tax (AMT) for certain
shareholders.
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--98.2% Amount Value
- -------------------------------------------------------
____________ ____________
<S> <C> <C>
Atlanta, 6.10%, 12/1/2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 $ 1,114,590
Atlanta Urban Residential Finance Authority, MFHR
(New Community) 5.50%, 11/20/2027 (Collateralized; GNMA) . . . . . . . . . . . . . . . 1,325,000 1,356,839
Baldwin County Hospital Authority, Revenue
(Oconee Regional Medical Center) 5.25%, 12/1/2022 . . . . . . . . . . . . . . . . . . . 1,000,000 984,500
Barrow County School District 5.60%, 2/1/2015 (Insured; MBIA). . . . . . . . . . . . . . . 1,000,000 1,074,670
Brunswick & Glynn County Development Authority, Revenue, Refunding
(Pacific Corp. Project) 5.55%, 3/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,006,610
Clayton County and Clayton County Water Authority, Water and Sewer Revenue,
Refunding
5.60%, 5/1/2013 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000 1,304,544
Colquitt County Hospital Authority, Refunding 5.50%, 3/1/2016 (Insured; FSA) . . . . . . . 1,000,000 1,050,950
Columbia County, Water and Sewer Revenue, Refunding
5.40%, 6/1/2011 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 811,380
Douglasville-Douglas County Water and Sewer Authority,
Water and Sewer Revenue, Refunding 4.50%, 6/1/2023 (Insured; FGIC) . . . . . . . . . . 1,000,000 933,010
Fayette County School District 6.125%, 3/1/2015. . . . . . . . . . . . . . . . . . . . . . 500,000 550,150
Fulton County, Water and Sewer Revenue, Refunding
6.375%, 1/1/2014 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,000 310,001
6.375%, 1/1/2014 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 35,430
Gainesville, Water and Sewer Revenue, Refunding 6%, 11/15/2012 (Insured; FGIC) . . . . . . 300,000 347,649
Georgia:
6.65%, 3/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,207,860
5.65%, 3/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,122,340
Georgia Housing and Finance Authority, SFMR :
7%, 12/1/2015 (Insured; FHA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,616,295
6.50%, 12/1/2017 (Insured; FHA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,072,740
Zero Coupon, 12/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 1,122,420
Georgia Municipal Gas Authority, Gas Revenue (Warner Robins Project)
5.80%, 1/1/2015 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,090,730
Glynn-Brunswick Memorial Hospital Authority (Southeast Georgia Health)
5.25%, 8/1/2013 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,043,750
Marietta Development Authority, Revenue, Refunding (First Mortgage-Life College)
5.75%, 9/1/2014 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850,000 924,154
Meriwether County School District 5.50%, 2/1/2016 (Insured; FSA) . . . . . . . . . . . . . 1,000,000 1,062,330
Metropolitan Atlanta Rapid Transportation Authority, Sales Tax Revenue,
Refunding
6.25%, 7/1/2020 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 353,898
Private Colleges and Universities Authority, Revenue, Refunding
(Spellman College Project) 6.20%, 6/1/2014 (Insured; FGIC) . . . . . . . . . . . . . . 1,000,000 1,115,270
_____________
TOTAL INVESTMENTS (cost $20,982,192) . . . . . . . . . . . . . . . . . . . . . . . . . . 98.2% $22,612,110
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8% $ 406,568
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $23,018,678
_______ _____________
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
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Summary of Abbreviations (Unaudited)
- -----------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
______ _______ ________________ _________________
AAA Aaa AAA 83.8%
AA Aa AA 7.4
BBB Baa BBB 8.8
_______
100.0%
_______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998 (UNAUDITED)
Cost Value
____________ ____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $20,982,192 $22,612,110
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 44,210
Interest receivable . . . . . . . . . . . . . . . . . . . 380,666
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 2,660
_____________
23,039,646
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 8,944
Due to Distributor . . . . . . . . . . . . . . . . . . . 12,024
_____________
20,968
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23,018,678
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $21,582,812
Accumulated net realized gain (loss) on investments . . . (194,052)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 1,629,918
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23,018,678
_____________
NET ASSET VALUE PER SHARE
--------------------
Class A Class B Class C
____________ _____________ ______________
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,441,762 $16,563,269 $ 13,647
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . 458,851 1,179,316 973
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . $14.04 $14.04 $14.03
_______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $ 635,345
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $ 65,181
Distribution fees--Note 3(b) . . . . . . . . . . 43,392
Shareholder servicing costs--Note 3(c) . . . . . 34,903
Prospectus and shareholders' reports . . . . . . 5,206
Professional fees . . . . . . . . . . . . . . . . 4,282
Registration fees . . . . . . . . . . . . . . . . 2,237
Custodian fees . . . . . . . . . . . . . . . . . 885
Trustees' fees and expenses--Note 3(d) . . . . . 146
Loan commitment fees--Note 2 . . . . . . . . . . 32
Miscellaneous . . . . . . . . . . . . . . . . . . 2,860
____________
Total Expenses . . . . . . . . . . . . . . . . 159,124
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 476,221
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . $ 418,123
Net unrealized appreciation (depreciation)
on investments . . . . . . . . . . . . . . . . 279,883
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 698,006
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $1,174,227
___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1998 Year Ended
(Unaudited) April 30, 1998
_______________ _______________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 476,221 $ 1,014,157
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 418,123 52,283
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . 279,883 723,425
_____________ ____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 1,174,227 1,789,865
_____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (138,948) (307,129)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (336,555) (705,439)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (718) (1,589)
_____________ ____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . (476,221) (1,014,157)
_____________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325,105 1,034,483
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234,359 1,001,862
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,198 14,318
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,875 210,772
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,552 349,972
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371 1,014
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (392,517) (1,833,199)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,900,075) (2,556,894)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31,303) (79,498)
_____________ ____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . (1,511,435) (1,857,170)
_____________ ____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . (813,429) (1,081,462)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,832,107 24,913,569
_____________ ____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23,018,678 $23,832,107
_____________ ____________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
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STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
________________________________
Six Months Ended
October 31, 1998 Year Ended
(Unaudited) April 30, 1998
_______________ _____________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,278 76,833
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 6,374 15,405
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,107) (134,087)
_________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . 1,545 (41,849)
_________ ___________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,912 72,878
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 11,657 25,567
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (137,176) (187,669)
_________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . (108,607) (89,224)
_________ ___________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 1,041
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 27 74
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,233) (5,938)
_________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . (2,120) (4,823)
_________ ___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class A Shares
_________________________________________________________________________
Six Months Ended
October 31, 1998 Year Ended April 30,
_______________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
__________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . $13.63 $13.22 $13.05 $12.80 $12.69 $13.27
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . .31 .61 .62 .66 .73 .73
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . .41 .41 .17 .25 .11 (.58)
_______ _______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . .72 1.02 .79 .91 .84 .15
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . (.31) (.61) (.62) (.66) (.73) (.73)
_______ _______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . $14.04 $13.63 $13.22 $13.05 $12.80 $12.69
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 10.49%(2) 7.76% 6.16% 7.14% 6.87% .97%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . .98%(2) .95% .98% .74% .25% .07%
Ratio of net investment income
to average net assets . . . . . . . . . . . 4.37%(2) 4.44% 4.71% 5.00% 5.80% 5.41%
Decrease reflected in above expense ratios due
to undertakings by the Manager . . . . . . -- -- -- .21% .78% 1.02%
Portfolio Turnover Rate . . . . . . . . . . . . 53.69%(3) 36.64% 50.96% 33.09% 34.04% 6.76%
Net Assets, end of period (000's Omitted) . . . $6,442 $6,232 $6,598 $8,346 $8,985 $10,058
- ---------
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
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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
_________________________________________________________________________
Six Months Ended
October 31, 1998 Year Ended April 30,
_______________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
__________ ____ ____ ____ ____ ____
Net asset value, beginning of period . . . . . $13.63 $13.22 $13.06 $12.80 $12.69 $13.27
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . .27 .54 .56 .59 .66 .67
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . .41 .41 .16 .26 .11 (.58)
_______ _______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . .68 .95 .72 .85 .77 .09
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . (.27) (.54) (.56) (.59) (.66) (.67)
_______ _______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . $14.04 $13.63 $13.22 $13.06 $12.80 $12.69
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 10.00%(2) 7.24% 5.55% 6.69% 6.33% .46%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . 1.47%(2) 1.44% 1.47% 1.24% .75% .58%
Ratio of net investment income
to average net assets . . . . . . . . . . 3.89%(2) 3.94% 4.20% 4.46% 5.27% 4.85%
Decrease reflected in above expense ratios due
to undertakings by the Manager . . . . . . -- -- -- .20% .80% 1.02%
Portfolio Turnover Rate . . . . . . . . . . . . 53.69%(3) 36.64% 50.96% 33.09% 34.04% (6.76%)
Net Assets, end of period (000's Omitted) . . . $16,563 $17,558 $18,211 $20,106 $19,429 $16,243
- ---------
(1) Exclusive of sales load.
(2) Annualized.
(3) Net annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
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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
________________________________________________
Six Months Ended
October 31, 1998 Year Ended April 30,
_______________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
_________ _______ _______ _______
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $13.62 $13.22 $13.05 $12.85
_______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . .23 .47 .51 .38
Net realized and unrealized gain (loss) on investments . . . . . . . . .41 .40 .17 .20
_______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . .64 .87 .68 .58
_______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . (.23) (.47) (.51) (.38)
_______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $14.03 $13.62 $13.22 $13.05
====== ====== ====== ======
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . . . . . . . . 9.42%(3) 6.61% 5.30% 6.28%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 2.02%(3) 1.91% 1.80% 1.98%(3)
Ratio of net investment income to average net assets . . . . . . . . . 3.41%(3) 3.48% 3.87% 3.73%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 53.69%(4) 36.64% 50.96% 33.09%(4)
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $14 $42 $105 $88
- ---------
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier State Municipal Bond Fund (the "Trust") is registered under
the Investment Company Act of 1940, as amended (the "Act") as a non-diversified
open-end management investment company, and operates as a series company
currently offering thirteen series including the Georgia 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.
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.
(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 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. Under the terms of the custody
agreement, the Fund receives net earnings credits based on available cash
balances left on deposit.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code of 1986, as
amended (the "Code"). To the extent that net realized capital gain can be offset
by capital loss carryovers, 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 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 $613,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1998. If not
applied, $329,000 of the carryover expires in fiscal 2003, $267,000 expires in
fiscal 2004 and $17,000 expires in fiscal 2005.
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. During the period ended
October 31, 1998, 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.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act,
Class B and Class C pay the Distributor for distributing their 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 31,1998, Class B and Class C shares were
charged $43,235 and $157, respectively, pursuant to the Distribution Plan.
(C) Under the Shareholder Services Plan, Class A, Class B and Class C shares
pay the Distributor at an annual rate of .25 of 1% of the value of the average
daily net assets 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 October 31, 1998, Class A, Class B and Class C
shares were charged $7,958, $21,617 and $53, respectively, pursuant to the
Shareholder Services Plan.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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. During the period
ended October 31, 1998, the Fund was charged $3,409 pursuant to the transfer
agency agreement.
(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 October 31, 1998
amounted to $12,599,930 and $14,182,873, respectively.
At October 31, 1998, accumulated net unrealized appreciation on investments
was $1,629,918, consisting of $1,630,418 gross unrealized appreciation and $500
gross unrealized depreciation.
At October 31, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
PREMIER STATE MUNICIPAL
BOND FUND, GEORGIA SERIES
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. 068/627SA9810
SEMI-ANNUAL REPORT
- -------------------------------------------------------------------------------
PREMIER STATE
MUNICIPAL BOND FUND
GEORGIA SERIES
- -------------------------------------------------------------------------------
OCTOBER 31, 1998
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