DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for the Dreyfus Premier State
Municipal Bond Fund--Maryland 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 . . . . . . . . . . . . . . . . . . . . 4.12% 4.77%
Class B shares . . . . . . . . . . . . . . . . . . . . 3.84% 4.46%
Class C shares . . . . . . . . . . . . . . . . . . . . 3.71% 4.21%
</TABLE>
ECONOMY REVIEW
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. is 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 the 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 is anticipatory of
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
The supply of new issues in Maryland has been rather low and sporadic over the
last six months. The Fund has not been able to make many purchases of new-issue
debt at attractive levels because of this light supply. Demand has continued to
remain strong over the last six months while supply is not expected to increase
until early December. The Fund intends to take advantage of this heavy supply by
purchasing the new issues when they are sold.
Municipals are still considered to be a very good investment when compared to
U. S. Treasury bonds. A twenty-year insured AAA rated tax-exempt municipal bond
currently yields over 95% of the taxable thirty-year U. S. Treasury bond. Over
the last year, municipals have averaged 89% of Treasuries.
PORTFOLIO OVERVIEW
In general, the Fund has wanted to maintain an aggressive investment posture
by purchasing discounted securities, but has had only limited success executing
this strategy due to a low supply of new issues. The supply of Maryland new
issues is expected to dramatically increase in early December. The Fund intends
to take advantage of this new supply by purchasing these issues in the primary
market. Because demand has outstripped supply over the last few months, the Fund
has slowly sold modest discounts that had achieved our price objectives and were
yielding a low return. Certain types of investors tend to favor this type of
bond, so the Fund can frequently take advantage of this situation.
The Fund was able to purchase some modest premiums at attractive yields in the
secondary market. Our intention is to hold these investments until we are able
to purchase discounts in the primary market. After the discounts have been
purchased the Fund will selectively sell modest premiums which have achieved our
performance goals.
Lower rated issues have remained fairly expensive when compared to insured
securities. The Fund continues to take advantage of this tight spread
relationship by favoring higher rated securities, which are more liquid. This
strategy will continue to give the Fund more flexibility to react to a weak
market, which can experience liquidity constraints.
The Fund's Class A shares had a six-month total return as of October 31, 1998,
of 4.12% ,* compared to the benchmark Lipper Maryland Municipal Bond average of
4.55%. Because the Fund was unable to purchase a significant amount of discounts
over the last six months while interest rates were falling, it was not able to
take full advantage of an improving market that occurred through September. The
Fund is anticipating a strong supply of Maryland issues in December and is
positioning the Fund to take advantage of this opportunity in late 1998.
Included in the report is a series of detailed statements about your Fund's
holdings and its financial condition. We hope you find them informative. Please
know that we appreciate greatly your continued confidence in the Fund and in The
Dreyfus Corporation.
Very truly yours,
[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 applicable contingent 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-Maryland 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, MARYLAND SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS OCTOBER 31, 1998 (UNAUDITED)
Principal
Municipal Bonds--97.7% Amount Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
MARYLAND--86.9%
Baltimore:
7%, 10/15/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500,000 $ 1,822,740
7.15%, 10/15/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,275,000 1,563,787
(Tindeco Wharf Project) 6.60%, 12/20/2024 (Collateralized; GNMA) . . . . . . . . . . 4,250,000 4,557,147
Port Facilities Revenue (Consolidated Coal Sales) 6.50%, 12/1/2010 . . . . . . . . . 9,740,000 10,799,030
Baltimore City Housing Corp., MFHR, Refunding
7.25%, 7/1/2023 (Collateralized; FNMA) . . . . . . . . . . . . . . . . . . . . . . . 3,150,000 3,252,879
Baltimore County:
Mortgage Revenue, Refunding:
Zero coupon, 9/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,280,000 554,222
(Burnam Woods) 5.20%, 9/1/2018 (Insured; FHA) . . . . . . . . . . . . . . . . . 1,000,000 1,018,180
Nursing Facility Mortgage Revenue (Eastpoint Rehabilitation & Nursing Centers):
6.75%, 4/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,014,710
6.75%, 4/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,508,475
PCR, Refunding (Bethlehem Steel Corp. Project):
7.50%, 6/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,785,000 6,339,492
7.55%, 6/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,690,000 2,950,123
Frederick County, Retirement Community Revenue, (Buckinghams Choice, Inc.
Facility):
5.90%, 1/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,022,150
6%, 1/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 769,440
Gaithersburg, Hospital Facilities Improvement Revenue, Refunding (Shady Grove)
6.50%, 9/1/2012 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 12,129,300
Howard County, COP 8.15%, 2/15/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . 605,000 860,492
Maryland Community Development Administration,
Department of Housing and Community Development:
Housing Revenue:
5.65%, 7/1/2039 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,405,000 5,592,878
5.75%, 7/1/2039 (Collateralized; GNMA) . . . . . . . . . . . . . . . . . . . 1,220,000 1,272,289
Multi-Family Development (Auburn Manor Project)
5.30%, 10/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,016,760
MFHR:
6.50%, 5/15/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,229,950
7.30%, 5/15/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,205,000 2,337,917
6.85%, 5/15/2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,326,850
6.70%, 5/15/2036 (Insured; FHA) . . . . . . . . . . . . . . . . . . . . . . . 7,710,000 8,422,867
Single Family Program:
7.40%, 4/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,028,000
6.95%, 4/1/2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,330,000 5,676,770
7.70%, 4/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,195,000 3,307,592
6.55%, 4/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,420,000 8,012,190
6.75%, 4/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,895,000 4,201,186
7.375%, 4/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,053,520
Zero Coupon, 4/1/2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,075,000 7,712,049
7.625%, 4/1/2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,870,000 7,054,185
7.45%, 4/1/2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,910,000 6,226,953
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Municipal Bonds (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
MARYLAND (CONTINUED)
Maryland Economic Development Corp., Revenue:
(Health and Mental Hygiene Providers Facilities Acquisition Program):
8.375%, 3/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,180,000 $ 4,605,608
8.75%, 3/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,935,000 5,234,653
Health Care Facility (Crescent Cities Project) 5.40%, 12/20/2027 . . . . . . . . . . 1,345,000 1,386,628
Maryland Health and Higher Educational Facilities Authority, Revenue:
(Calvert Memorial Hospital) 5%, 7/1/2028 . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,966,440
(College of Notre Dame) 4.65%, 10/1/2023 . . . . . . . . . . . . . . . . . . . . . 1,400,000 1,329,622
(Johns Hopkins Medicine -- Howard County General Hospital Acquisition) 5%, 7/1/2029 . 4,750,000 4,716,513
(Memorial Hospital at Easton) 4.70%, 7/1/2019 (Insured; MBIA)O . . . . . . . . . . 5,550,000 5,353,974
(Refunding -- Doctors Community Hospital) 5.50%, 7/1/2024 . . . . . . . . . . . . . 9,890,000 9,965,659
(Refunding -- Helix Health Issue) 5%, 7/1/2027 (Insured; AMBAC) . . . . . . . . . . 5,500,000 5,462,325
(Refunding -- Howard County General Hospital) 5.50%, 7/1/2025 . . . . . . . . . . . 2,105,000 2,207,619
(Refunding -- John Hopkins) 5%, 7/1/2023 . . . . . . . . . . . . . . . . . . . . . . 6,845,000 6,716,109
(Refunding -- Roland Park Project) 7.75%, 7/1/2012 . . . . . . . . . . . . . . . . . 2,230,000 2,308,206
(Refunding -- Upper Chesapeake Hospitals):
5.50%, 1/1/2020 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,089,360
5.375%, 1/1/2028 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,536,495
(Union Hospital of Cecil County):
6.70%, 7/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,320,000 2,653,198
4.75%, 7/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,840,000 1,814,074
5.10%, 7/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,451,000
(University of Maryland Medical Systems) 7%, 7/1/2022 (Insured; FGIC) . . . . . . . 4,500,000 5,788,665
Maryland Industrial Development Financing Authority, EDR
(Medical Waste Association) 8.75%, 11/15/2010 . . . . . . . . . . . . . . . . . . . 710,000 720,678
Maryland Local Government Insurance Trust, Capitalization Program, COP
7.125%, 8/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,250,000 3,501,225
Maryland Stadium Authority, Sports Facility LR:
7.60%, 12/15/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,250,000 5,580,173
5.80%, 3/1/2026 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,769,570
Montgomery County Housing Opportunities Commission, Revenue:
Multi-Family Mortgage:
7.05%, 7/1/2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,485,000 2,632,286
7.375%, 7/1/2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,140,000 2,236,557
Single Family Mortgage:
7.375%, 7/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,760,000 1,817,552
6.625%, 7/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,015,000 1,099,184
Zero Coupon, 7/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,975,000 8,295,939
Northeast Waste Disposal Authority, Solid Waste Revenue
(Montgomery County Resource Recovery Project):
6%, 7/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,690,000 3,015,678
6.20%, 7/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,130,000 14,120,265
6.30%, 7/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,205,000 15,254,607
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Municipal Bonds (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
MARYLAND (CONTINUED)
Prince Georges County, Refunding:
Consolidated Public Improvement:
6.75%, 7/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,170,000 $ 1,277,921
4.75%, 4/15/2017 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . 2,800,000 2,767,716
Revenue (Dimensions Health Corp.) 5.30%, 7/1/2024 . . . . . . . . . . . . . . . . . 5,000,000 4,954,600
Prince Georges County Housing Authority:
Mortgage Revenue:
(Langley Gardens Apartment Project) 5.75%, 8/20/2029 (Collateralized; GNMA) . . 1,000,000 1,046,190
(Refunding -- New Keystone Apartment Project) 6.80%, 7/1/2025 (Insured: FHA & MBIA) 4,300,000 4,601,344
(Refunding -- Riverview Terrace) 6.70%, 6/20/2020 (Collateralized; GNMA) . . . . 2,000,000 2,182,760
(Refunding -- Stevenson Apartments Project)
6.35%, 7/20/2020 (Collateralized; GNMA) . . . . . . . . . . . . . . . . . . 3,000,000 3,177,300
SFMR:
6.60%, 12/1/2025 (Collateralized: FNMA & GNMA) . . . . . . . . . . . . . . . . . 4,660,000 5,000,180
5.75%, 8/1/2026 (Collateralized: FNMA & GNMA) . . . . . . . . . . . . . . . . . 5,000,000 5,198,800
U.S. RELATED--10.8%
Guam Airport Authority, Revenue 6.70%, 10/1/2023 . . . . . . . . . . . . . . . . . . . . 10,000,000 10,951,600
Puerto Rico Commonwealth Aqueduct and Sewer Authority, Revenue, Refunding
5%, 7/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,870,000 15,717,648
Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue:
5.40%, 7/1/2006 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,257,040
5.50%, 7/1/2026 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,060,330
Puerto Rico Electric Power Authority, Power Revenue
5.50%, 7/1/2025 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,152,490
______________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $298,420,711)....................................... $317,609,904
______________
Short-Term Municipal Investments--1.5%
- -------------------------------------------------------
Maryland;
Northeast Waste Disposal Authority, RRR, Refunding, VRDN
(Harford County Resource) 2.95% (Insured; AMBAC) (a) (cost $4,965,000) . . . . . . . . $ 4,965,000 $ 4,965,000
______________
TOTAL INVESTMENTS--100.0% (cost $303,385,711) . . . . . . . . . . . . . . . . . . . . . 99.2% $322,574,904
_______ ______________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8% $ 2,508,199
_______ ______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $325,083,103
_______ ______________
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
EDR Economic Development Revenue Insurance Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
FNMA Federal National Mortgage Association RRR Resources Recovery Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association VRDN Variable Rate Demand Notes
SUMMARY OF COMBINED RATINGS (UNAUDITED)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
______ _______ ________________ _________________
AAA Aaa AAA 27.6%
AA Aa AA 33.2
A A A 22.3
BBB Baa BBB 7.2
F1 + & F1 MIG1, VMIG1 & P1 SP1 & A1 1.5
Not Rated (b) Not Rated (b) Not Rated (b) 8.2
_______
100.0%
_______
_______
NOTES TO STATEMENT OF INVESTMENTS:
- -----------------------------------------------------------------------------
(a) Securities payable on demand. Variable interest rate--subject to periodic
change.
(b) Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
(c) At October 31, 1998, the Fund had $87,655,199 (27.0% of net assets) and
$108,022,217 (33.2% of net assets) invested in securities whose payment of
principal and interest is dependent upon revenues generated from health
care projects and housing projects, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $303,385,711 $322,574,904
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 991,635
Interest receivable . . . . . . . . . . . . . . . . . . . 4,978,696
Receivable for shares of Beneficial Interest subscribed . . 450,025
Receivable for investment securities sold . . . . . . . . 445,176
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 16,078
______________
329,456,514
______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 156,564
Due to Distributor . . . . . . . . . . . . . . . . . . . 94,101
Payable for shares of Beneficial Interest redeemed . . . 171,607
Payable for investment securities purchased . . . . . . . 3,904,542
Accrued expenses and liabilities . . . . . . . . . . . . 46,597
______________
4,373,411
______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $325,083,103
______________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $301,074,030
Accumulated net realized gain (loss) on investments . . . 4,819,879
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 19,189,194
______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $325,083,103
______________
NET ASSET VALUE PER SHARE
------------------------------------------------------------
Class A Class B Class C
______________ ______________ ______________
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $265,890,298 $ 56,530,927 $ 2,661,878
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . 20,071,427 4,266,874 200,784
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . $13.25 $13.25 $13.26
_______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $ 9,502,799
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $ 884,461
Shareholder servicing costs--Note 3(c) . . . . . 509,657
Distribution fees--Note 3(b) . . . . . . . . . . 141,325
Professional fees . . . . . . . . . . . . . . . . 19,830
Custodian fees . . . . . . . . . . . . . . . . . 17,093
Registration fees . . . . . . . . . . . . . . . . 8,189
Prospectus and shareholders' reports . . . . . . 7,733
Trustees' fees and expenses--Note 3(d) . . . . . 1,613
Loan commitment fees--Note 2 . . . . . . . . . . 913
Miscellaneous . . . . . . . . . . . . . . . . . . 8,461
____________
Total Expenses . . . . . . . . . . . . . . . . 1,599,275
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,903,524
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . $ 2,280,971
Net unrealized appreciation (depreciation)
on investments . . . . . . . . . . . . . . . . 2,468,007
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 4,748,978
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $12,652,502
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1998 Year Ended
(Unaudited) April 30, 1998
_______________ _____________
OPERATIONS:
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,903,524 $ 15,888,933
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 2,280,971 4,073,024
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . 2,468,007 8,042,789
______________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 12,652,502 28,004,746
______________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,666,293) (13,655,457)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,193,783) (2,196,616)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (43,448) (36,860)
Net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (3,083,888)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (552,806)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (9,259)
______________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,903,524) (19,534,886)
______________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,947,891 8,758,816
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,053,246 7,395,511
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 983,852 1,433,134
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,177,724 10,820,042
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741,268 1,800,125
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,468 31,396
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,748,772) (30,922,294)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,171,890) (5,603,825)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (54,184)
______________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . 6,015,787 (6,341,279)
______________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . 10,764,765 2,128,581
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314,318,338 312,189,757
______________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $325,083,103 $314,318,338
______________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
________________________________
Six Months Ended
October 31, 1998 Year Ended
(Unaudited) April 30, 1998
_______________ _____________
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601,318 669,128
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 316,122 825,979
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (966,014) (2,367,974)
_________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . (48,574) (872,867)
_________ ___________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533,747 564,406
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 56,070 137,404
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (164,765) (428,097)
_________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . 425,052 273,713
_________ ___________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,376 109,671
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 2,545 2,391
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (4,128)
_________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . 76,921 107,934
_________ ___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND 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 . . . . . $13.05 $12.70 $12.69 $12.54 $12.46 $13.02
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . .33 .67 .68 .67 .70 .73
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . .20 .50 .18 .23 .08 (.53)
_______ _______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . .53 1.17 .86 .90 .78 .20
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . (.33) (.67) (.68) (.67) (.70) (.73)
Dividends from net realized gain
on investments . . . . . . . . . . . . . -- (.15) (.17) (.08) -- (.03)
_______ _______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . (.33) (.82) (.85) (.75) (.70) (.76)
_______ _______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . $13.25 $13.05 $12.70 $12.69 $12.54 $12.46
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 8.17%(2) 9.40% 6.91% 7.24% 6.52% 1.33%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . .90%(2) .90% .90% .90% .90% .80%
Ratio of net investment income
to average net assets . . . . . . . . . . . 5.01%(2) 5.12% 5.29% 5.23% 5.69% 5.51%
Decrease reflected in above expense ratios due
to undertakings by the Manager . . . . . . -- -- -- -- .01% .10%
Portfolio Turnover Rate . . . . . . . . . . . . 12.10%(3) 18.12% 43.63% 41.65% 35.39% (10.27%)
Net Assets, end of period (000's Omitted) . . . $265,890 $262,560 $266,658 $283,878 $301,834 $335,518
- --------------
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND 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
_________________________________________________________________________
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 . . . . . $13.05 $12.70 $12.69 $12.54 $12.46 $13.02
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . .30 .60 .61 .61 .63 .65
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . .20 .50 .18 .23 .08 (.53)
_______ _______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . .50 1.10 .79 .84 .71 .12
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . (.30) (.60) (.61) (.61) (.63) (.65)
Dividends from net realized gain
on investments . . . . . . . . . . . . . -- (.15) (.17) (.08) -- (.03)
_______ _______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . (.30) (.75) (.78) (.69) (.63) (.68)
_______ _______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . $13.25 $13.05 $12.70 $12.69 $12.54 $12.46
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 7.62%(2) 8.83% 6.34% 6.66% 5.94% .75%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . 1.43%(2) 1.42% 1.43% 1.43% 1.44% 1.37%
Ratio of net investment income
to average net assets . . . . . . . . . . 4.47%(2) 4.59% 4.75% 4.68% 5.13% 4.82%
Decrease reflected in above expense ratios due
to undertakings by the Manager . . . . . . -- -- -- -- .01% .08%
Portfolio Turnover Rate . . . . . . . . . . . . 12.10%(3) 18.12% 43.63% 41.65% 35.39% (10.27%)
Net Assets, end of period (000's Omitted) . . . $56,531 $50.141 $45,329 $41,179 $35,090 $30,527
- ---------
(1) Exclusive of sales load.
(2) Annualized.
(3) Net annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND 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
________________________________________________
Six Months Ended
October 31, 1998 Year Ended April 30,
_______________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
_________ _______ _______ _______
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $13.06 $12.71 $12.69 $12.67
_______ _______ _______ _______
Investment Operations:
Investment income (loss)--net . . . . . . . . . . . . . . . . . . . . . .28 .57 .58 .41
Net realized and unrealized gain (loss) on investments . . . . . . . . .20 .50 .19 .10
_______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . .48 1.07 .77 .51
_______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . (.28) (.57) (.58) (.41)
Dividends from net realized gain on investments . . . . . . . . . . . . -- (.15) (.17) (.08)
_______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . (.28) (.72) (.75) (.49)
_______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $13.26 $13.06 $12.71 $12.69
_______ _______ _______ _______
TOTAL INVESTMENT RETURN (2). . . . . . . . . . . . . . . . . . . . . . . . 7.36%(3) 8.55% 6.16% 5.57%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 1.67%(3) 1.67% 1.64% 1.80%(3)
Ratio of net investment income to average net assets . . . . . . . . . 4.17%(3) 4.29% 4.47% 4.59%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 12.10%(4) 18.12% 43.63% 41.65%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $2,662 $1,618 $202 $27
- ---------
(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, MARYLAND SERIES
- -----------------------------------------------------------------------------
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 (the "Act") as a non-diversified open-end
management investment company, and operates as a series company currently
offering thirteen series including the Maryland 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 received net earnings credits of $11,633 during the period
ended October 31, 1998 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND 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, 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 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 the 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.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $000 during the period ended October 31, 1998, from commissions earned
on sales of the Fund's shares.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act,
Class B and Class C shares 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 $133,508 and $7,817, 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 their 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 $332,668, $66,754 and $2,606, respectively, pursuant to the
Shareholder Services Plan.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND 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 $70,668 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 $41,634,059 and $37,949,198, respectively.
At October 31, 1998, accumulated net unrealized appreciation on investments
was $19,189,193, consisting of $20,484,847 gross unrealized appreciation and
$1,295,654 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).
(
DREYFUS PREMIER STATE MUNICIPAL
BOND FUND, MARYLAND 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. 052/616SA9810
SEMI-ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER STATE
MUNICIPAL BOND FUND
MARYLAND SERIES
- -------------------------------------------------------------------------------
OCTOBER 31, 1998
