-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, b8Rm9wwD7cUtNaEas2jemzIyCylAZ0ymddrvleIwSjZGklhouEAKydHbik9hK0Jm r8cf5t3Y1HiYw++J7CBl/A== 0000806176-94-000033.txt : 19941230 0000806176-94-000033.hdr.sgml : 19941230 ACCESSION NUMBER: 0000806176-94-000033 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941031 FILED AS OF DATE: 19941229 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PREMIER STATE MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0000806176 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04906 FILM NUMBER: 94566761 BUSINESS ADDRESS: STREET 1: 144 GENN CURTISS BLVD CITY: NUIONDALE STATE: NY ZIP: 11556 BUSINESS PHONE: 2129226805 FORMER COMPANY: FORMER CONFORMED NAME: PREMIER SERIES TAX EXEMPT BOND FUND DATE OF NAME CHANGE: 19870224 N-30D 1 SEMI-ANNUAL REPORT LETTER TO SHAREHOLDERS Dear Shareholder: During 1994, the bond markets were hurt by a strengthening economy, fears of rising inflation and a weakening U.S. dollar. As a result, interest rates have risen much faster than most economists had anticipated. Since the beginning of this calendar year, long-term municipal bond yields have climbed by nearly 175 basis points (1.75%), rendering 1994 unprecedented for market price erosion. Reflecting this decline in bond prices, the net asset value of Class A shares in the Series fell by 3.37% for the six-month period ended October 31, 1994. Offsetting this loss were income dividends paid of approximately $.36 per share. This equates to an annualized, tax-free distribution rate per share of 5.59%, based on the October 31, 1994 closing maximum offering price per share of $12.61. For the same period, Class B shares also fell 3.37%. Income dividends of approximately $.32 per share were paid, translating into an annualized, tax-free distribution rate per share of 5.28%, based on a closing net asset value of $12.04. All interest income distributed was exempt from Federal and Maryland State income taxes.* Last year, when it became apparent that the economy was gathering momentum, we put in place a defensive investment strategy, seeking to reduce portfolio volatility. We believe that our actions to build cash reserves and reduce the Series' exposure to more volatile bonds were generally successful. While we continue to be cautious in our investment strategy, we are hopeful that the series of Federal Reserve Board moves to tighten interest rates, begun in February, will start to translate into positive news for the fixed-income markets. One factor currently working to your Series' advantage is the municipal market's favorable technical position (i.e., an adequate demand combined with a sharp reduction in the supply of new issues this year). We are beginning to view security prices in the municipal market more favorably than we have in some time, but we are still wary of the strength exhibited in the economic data. The Federal Reserve's decision in November to raise the Federal Funds rate another 75 basis points (the sixth rate hike since February) provides some optimism that we are getting closer to the end of the tightening. Should a clearer picture emerge, indicating that higher interest rates are being effective, we are poised to alter our investment strategy accordingly. After enjoying a number of years of strong market performance and a corresponding rise in the value of your Series' portfolio, it is unsettling to be faced with such an uncertain interest rate environment. Falling prices earlier this year reduced the value of fixed-income securities, but the level of tax-free dividends has remained stable. While the financial press focuses on short-term market swings, we maintain a longer perspective. We continue to direct our management efforts towards seeking high current income, free from Federal and Maryland State income taxes. We have included a current Statement of Investments and recent financial statements for your review. We greatly appreciate your investment in the Series and look forward to serving your investment needs in the future. Very truly yours, (Richard J. Moynihan Signature Logo) Richard J. Moynihan Director, Municipal Portfolio Management The Dreyfus Corporation November 15, 1994 New York, N.Y. * Some income may be subject to the Federal Alternative Minimum Tax (AMT) for certain shareholders.
PREMIER STATE MUNICIPAL BOND FUND, Maryland Series STATEMENT OF INVESTMENTS OCTOBER 31, 1994 (UNAUDITED) PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS--98.2% AMOUNT VALUE -------------- -------------- MARYLAND--91.5% Anne Arundel County: Consolidated Water and Sewer 7.75%, 3/15/2008........................... $ 1,000,000 $ 1,083,770 Mortgage Revenue, Refunding (Mill Pond Apartments) 5.875%, 7/1/2011 (Insured; MBIA)...................................... 1,610,000 1,499,039 Baltimore: 7%, 10/15/2007 (Insured; MBIA).......................................... 1,500,000 1,618,230 7.15%, 10/15/2008....................................................... 1,275,000 1,372,117 PCR (General Motors Corp.) 5.35%, 4/1/2008.............................. 6,000,000 5,251,440 Port Facilities Revenue (Consolidated Coal Sales) 6.50%, 12/1/2010...... 6,240,000 6,221,030 Baltimore City Housing Corp., MFHR, Refunding 7.25%, 7/1/2023 (Collateralized; FNMA).................................. 3,285,000 3,319,460 Baltimore County: Mortgage Revenue: (First Mortgage - Pickersgill) 7.70%, 1/1/2021........................ 3,000,000 3,105,750 (Refunding - Tindeco Wharf Project) 6.50%, 12/20/2012 (Collateralized; GNMA) 1,500,000 1,476,585 PCR, Refunding (Bethlehem Steel Corp. Project) 7.55%, 6/1/2017.......... 2,500,000 2,442,000 (Refunding - County Pension Funding) 5.20%, 4/1/2009.................... 3,500,000 3,093,090 Baltimore County Revenue Authority, Revenue 7.20%, 7/1/1999 (Insured; MBIA, Prerefunded 7/1/1999) (a)............... 2,175,000 2,368,292 Calvert County, PCR, Refunding (Baltimore Gas and Electric Co. Project) 5.55%, 7/15/2014............... 4,000,000 3,461,120 Gaithersburg, EDR, Refunding (First Mortgage - Asbury Methodist) 5.75%, 1/1/2011......................................................... 3,000,000 2,732,970 Howard County: COP 8.15%, 2/15/2020.................................................... 605,000 736,702 Consolidated Public Improvement, Refunding 5.25%, 8/15/2012............. 1,500,000 1,291,080 EDR, Refunding (M.O.R. XIV Associates Project) 7.75%, 6/1/2012.......... 2,500,000 2,641,350 Howard County Metropolitan District: 6.625%, 2/15/2021 (Prerefunded 2/15/2001) (a)........................... 2,090,000 2,209,945 6.125%, 5/15/2023....................................................... 2,000,000 1,895,700 Refunding 6%, 8/15/2019................................................. 2,500,000 2,349,700 Kent County, College Revenue, Refunding (Washington College Project) 7.70%, 7/1/2018......................................................... 1,750,000 1,847,405 Maryland Community Development Administration, Department of Housing and Community Development: MFHR: 5.45%, 5/15/2013 (Insured; FHA)................................... 1,750,000 1,524,688 6.50%, 5/15/2013.................................................. 5,000,000 4,863,550 7.354%, 5/15/2013 (b,c)........................................... 6,100,000 4,880,000 8.875%, 5/15/2021................................................. 525,000 555,277 7.30%, 5/15/2023.................................................. 2,205,000 2,245,462 PREMIER STATE MUNICIPAL BOND FUND, Maryland Series STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED) PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE -------------- -------------- MARYLAND (CONTINUED) Maryland Community Development Administration, Department of Housing and Community Development (continued): MFHR (continued): 6.75%, 4/1/2026................................................... $ 3,650,000 $ 3,485,458 7.10%, 5/15/2028.................................................. 2,400,000 2,405,952 Maryland Community Development Administration, Department of Housing and Community Development MFHR (continued): Zero Coupon, 5/15/2032............................................ 11,550,000 619,773 6.85%, 5/15/2033.................................................. 5,000,000 4,829,300 Single Family Program: 7.40%, 4/1/2009................................................... 1,000,000 1,011,060 6.85%, 4/1/2011................................................... 1,500,000 1,505,580 6.95%, 4/1/2011................................................... 6,450,000 6,520,370 7.125%, 4/1/2014.................................................. 3,975,000 4,020,951 7.70%, 4/1/2015................................................... 1,685,000 1,732,601 7.375%, 4/1/2026.................................................. 2,000,000 2,027,760 Zero Coupon, 4/1/2029............................................. 85,075,000 5,741,712 7.625%, 4/1/2029.................................................. 8,000,000 8,073,600 7.45%, 4/1/2032................................................... 6,410,000 6,517,303 Maryland Department of Transportation, Consolidated Transportation 6.375%, 9/1/2006........................................................ 5,000,000 5,168,950 Maryland Economic Development Corp., Revenue (Health and Mental Hygiene Providers Facilities Acquisition Program): 8.375%, 3/1/2013...................................................... 4,615,000 4,609,508 8.75%, 3/1/2017....................................................... 5,340,000 5,466,878 Maryland Health and Higher Educational Facilities Authority, Revenue: (Anne Arundel Medical Center) 5.25%, 7/1/2013 (Insured; AMBAC).......... 3,530,000 2,936,395 (Bon Secours Hospital) 7.375%, 9/1/2017 (Prerefunded 7/1/2000) (a)...... 2,575,000 2,850,963 (Francis Scott Key Medical Center) 7%, 7/1/2025 (Prerefunded 7/1/2000) (a) 6,500,000 7,067,385 (Good Samaritan Hospital): 5.70%, 7/1/2009....................................................... 3,140,000 2,926,920 7.50%, 7/1/2021....................................................... 4,000,000 4,402,640 (Greater Baltimore Medical Center) 6.75%, 7/1/2019 (Prerefunded 7/1/2001) (a) 4,250,000 4,579,673 (Howard County General Hospital) 8.25%, 7/1/2018 (Prerefunded 7/1/1998) (a) 2,600,000 2,904,408 (Maryland General Hospital) 6.125%, 7/1/2019 (Insured; MBIA)............ 2,300,000 2,159,608 (Memorial Hospital of Cumberland): 9.25%, 7/1/2017 (Prerefunded 7/1/1997) (a)............................ 3,000,000 3,369,270 Refunding 6.50%, 7/1/2017 (Insured; MBIA)............................. 2,750,000 2,565,035 (Mercy Medical Center) 8%, 7/1/2020 (Prerefunded 7/1/1999) (a).......... 4,675,000 5,251,147 (Refunding - Johns Hopkins Hospital) 5%, 7/1/2023....................... 2,000,000 1,531,900 (Refunding - Peninsula Regional Medical Project) 5%, 7/1/2023........... 1,400,000 1,048,628 (Refunding - Roland Park Project) 7.75%, 7/1/2012....................... 2,230,000 2,352,695 (Sinai Hospital of Baltimore) 7%, 7/1/2019 (Insured; AMBAC, Prerefunded 7/1/2000) (a)............................ 5,250,000 5,705,595 PREMIER STATE MUNICIPAL BOND FUND, Maryland Series STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED) PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE -------------- -------------- MARYLAND (CONTINUED) Maryland Health and Higher Educational Facilities Authority, Revenue (continued): (Union Hospital of Cecil County) 6.70%, 7/1/2009........................ $ 2,320,000 $ 2,246,201 (University of Maryland Medical Systems): 7%, 7/1/2022 (Insured; FGIC) ......................................... 4,500,000 4,756,590 Refunding: 5.40%, 7/1/2008 (Insured; FGIC)................................... 2,625,000 2,365,834 5.375%, 7/1/2013 (Insured; FGIC).................................. 4,500,000 3,806,145 Maryland Industrial Development Financing Authority, EDR (Medical Waste Association) 8.625%, 11/15/1999 (d)...................... 2,050,000 656,000 Maryland Local Government Insurance Trust, Capitalization Program, COP 7.125%, 8/1/2009........................................................ 3,250,000 3,405,870 Maryland Stadium Authority, Sports Facility LR 7.60%, 12/15/2019............ 5,250,000 5,680,658 Maryland Transportation Authority, Transportation Facilities Project Revenue: 9%, 7/1/2015 (Prerefunded 7/1/1995) (a)................................. 1,790,000 1,881,397 Refunding 5.70%, 7/1/2005............................................... 3,700,000 3,610,275 Maryland Water Quality Financing Administration, Revolving Loan Fund Revenue: 7.25%, 9/1/2011......................................................... 2,250,000 2,410,268 7.25%, 9/1/2012......................................................... 5,500,000 5,842,870 6.70%, 9/1/2013......................................................... 1,200,000 1,219,008 7.10%, 9/1/2013......................................................... 600,000 630,822 Montgomery County Housing Opportunities Commission, Revenue: Multi-Family Mortgage: 7%, 7/1/2023.......................................................... 1,190,000 1,184,002 7.05%, 7/1/2032....................................................... 2,485,000 2,468,400 7.375%, 7/1/2032...................................................... 4,630,000 4,654,261 Single Family Mortgage 7.375%, 7/1/2017................................. 1,875,000 1,897,781 Montgomery County Revenue Authority, LR: (Olney Indoor Swim Center Project) 6.30%, 7/15/2012..................... 2,110,000 2,229,299 (Western County Swim Facility Project) 7.375%, 10/1/2009 (Prerefunded 7/15/2000) (a) 1,500,000 1,621,830 Northeast Waste Disposal Authority, RRR (Harford County Resource Recovery) 8.60%, 1/1/2008......................................................... 1,450,000 1,500,518 Prince Georges County: Consolidated Public Improvement, Refunding: 6.75%, 7/1/2001....................................................... 830,000 895,827 6.75%, 7/1/2010 (Prerefunded 7/1/2001) (a)............................ 1,170,000 1,188,229 5.25%, 10/1/2010...................................................... 1,000,000 854,960 EDR, Refunding (Capitol View II) 9%, 9/1/2002........................... 7,506,000 6,380,100 PCR, Refunding (Potomac Electric Project) 6%, 9/1/2022.................. 3,750,000 3,394,237 Revenue Project, Refunding (Dimensions Health Corp.) 5.375%, 7/1/2014... 3,000,000 2,447,430 Solid Waste Management System Revenue 5.25%, 6/15/2013.................. 3,800,000 3,161,790 Stormwater Management 5.50%, 3/15/2013.................................. 2,780,000 2,440,840 PREMIER STATE MUNICIPAL BOND FUND, Maryland Series STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED) PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE -------------- -------------- MARYLAND (CONTINUED) Prince Georges County Housing Authority: Mortgage Revenue, Refunding: (New Keystone Apartment Project) 6.80%, 7/1/2025 (Insured: FHA and MBIA) $4,300,000 $4,239,499 (Stevenson Apartments Project) 6.35%, 7/20/2020 (Collateralized; GNMA) 3,000,000 2,826,060 (Timber Ridge/Cypress Creek) 5.625%, 12/20/2013 (Collateralized; GNMA) 5,355,000 4,857,521 SFMR 6.60%, 12/1/2025 (Collateralized: FNMA and GNMA)................... 5,000,000 4,758,700 Prince Georges County Industrial Development Authority, LR (Upper Marlboro Justice Center) 7%, 6/30/2019 (Insured; MBIA, Prerefunded 6/30/1999) (a)............................ 2,500,000 2,703,950 University of Maryland, System Auxiliary Facility and Tuition Revenue: 6.50%, 10/1/2002........................................................ 1,420,000 1,512,939 5.375%, 4/1/2009........................................................ 3,500,000 3,110,870 6.50%, 4/1/2011 (Prerefunded 4/1/2000) (a).............................. 4,990,000 5,306,266 Refunding 5%, 10/1/2010................................................. 3,000,000 2,484,720 Washington County, Multi-Family Rental Housing Revenue, Refunding (Youngstown Apartments) 7%, 2/1/2025 (Insured; FHA)..................... 3,990,000 4,011,825 Washington D. C. Metropolitan Transit Authority, Gross Revenue, Refunding 5.25%, 7/1/2014 (Insured; FGIC)......................................... 1,000,000 836,950 Washington Suburban Sanitary District, General Construction: 6.90%, 6/1/2010 (Prerefunded 6/1/2001) (a).............................. 1,055,000 1,143,641 6.50%, 12/1/2011 (Prerefunded 12/1/1999) (a)............................ 4,820,000 5,128,383 6.50%, 11/1/2014 (Prerefunded 11/1/2001) (a)............................ 2,690,000 2,861,138 U. S. RELATED--6.7% Guam Airport Authority, Revenue 6.70%, 10/1/2023............................ 4,000,000 3,789,880 Guam Power Authority, Revenue 6.30%, 10/1/2012.............................. 3,400,000 3,166,454 Puerto Rico Commonwealth: 5.85%, 7/1/2009......................................................... 5,000,000 4,681,650 Refunding 6.25%, 7/1/2010............................................... 3,000,000 2,903,760 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue 6.82%, 7/1/2006 (b)..................................................... 5,500,000 4,516,875 Puerto Rico Public Buildings Authority, Revenue, Refunding 5.70%, 7/1/2009.. 3,500,000 3,197,285 -------------- TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $329,519,850)................... $324,344,578 ============== SHORT-TERM MUNICIPAL INVESTMENTS--1.8% MARYLAND; Maryland Health and Higher Educational Facilities Authority, Revenue, VRDN (Pooled Loan Program) 3.20% (cost $6,000,000) (e)....................... $ 6,000,000 $ 6,000,000 ============== TOTAL INVESTMENTS--100.0% (cost $335,519,850)..................................................... $330,344,578 ==============
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 MFHR Multi-Family Housing Revenue FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue FHA Federal Housing Administration RRR Resource Recovery Revenue FNMA Federal National Mortgage Association SFMR Single Family Mortgage Revenue GNMA Government National Mortgage Association VRDN Variable Rate Demand Notes
SUMMARY OF COMBINED RATINGS (UNAUDITED) FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE - --------- --------- -------------------- ----------------------- AAA Aaa AAA 33.2% AA Aa AA 34.2 A A A 19.0 BBB Baa BBB 4.9 F1+ & F1 MIG1, VMIG1 & A1 SP1 & A1 1.8 Not Rated Not Rated Not Rated 6.9 -------- 100.0% ======
NOTES TO STATEMENT OF INVESTMENTS: (a) Bonds which are prerefunded are collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date. (b) Inverse floater security - the interest rate is subject to change periodically. (c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 1994, this security amounted to $4,880,000 or 1.4% of net assets. (d) Non-income producing security. (e) Securities payable on demand. The interest rate, which is subject to change, is based upon bank prime rates or an index of market interest rates. (f) Fitch currently provides creditworthiness information for a limited number of investments. (g) At October 31, 1994, the Fund had $99,753,529 (29.2% of net assets) and $89,189,566 (26.1% of net assets) invested in securities whose payment of principal and interest is dependent upon revenues generated from housing projects and health care projects, respectively. See independent accountants' review report and notes to financial statements. PREMIER STATE MUNICIPAL BOND FUND, Maryland Series STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1994 (UNAUDITED) ASSETS: Investments in securities, at value (cost $335,519,850)_see statement..................................... $330,344,578 Cash.................................................................... 5,654,017 Interest receivable..................................................... 5,925,787 Receivable for shares of Beneficial Interest subscribed................. 317,829 Prepaid expenses........................................................ 15,406 -------------- 342,257,617 LIABILITIES: Due to The Dreyfus Corporation.......................................... $162,242 Due to the Distributor.................................................. 87,634 Payable for shares of Beneficial Interest redeemed...................... 784,969 Accrued expenses........................................................ 63,650 1,098,495 ---------- -------------- NET ASSETS ................................................................ $341,159,122 ============== REPRESENTED BY: Paid-in capital......................................................... $348,141,586 Accumulated net realized capital losses and distributions in excess of net realized gain on investments...................................... (1,807,192) Accumulated net unrealized (depreciation) on investments_Note 3......... (5,175,272) -------------- NET ASSETS at value......................................................... $341,159,122 ============== Shares of Beneficial Interest outstanding: Class A Shares (unlimited number of $.001 par value shares authorized)............... 25,636,965 ============== Class B Shares (unlimited number of $.001 par value shares authorized)............... 2,698,914 ============== NET ASSET VALUE per share: Class A Shares ($308,666,913 / 25,636,965 shares).................................... $12.04 ======= Class B Shares ($32,492,209 / 2,698,914 shares)...................................... $12.04 ======= See independent accountants' review report and notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, Maryland Series STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1994 (UNAUDITED) INVESTMENT INCOME: INTEREST INCOME......................................................... $11,874,224 EXPENSES: Management fee--Note 2(a)............................................. $ 995,759 Shareholder servicing costs-Note 2(c)................................. 583,745 Distribution fees (Class B shares)-Note 2(b).......................... 80,746 Professional fees..................................................... 20,092 Custodian fees........................................................ 18,865 Prospectus and shareholders' reports.................................. 13,618 Registration fees..................................................... 2,572 Trustees' fees and expenses-Note 2(d)................................. 1,395 Miscellaneous......................................................... 15,620 --------------- 1,732,412 Less_reduction in management fee due to undertakings-Note 2(a)............................................ 32,614 --------------- TOTAL EXPENSES.................................................. 1,699,798 ------------- INVESTMENT INCOME--NET.......................................... 10,174,426 REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS: Net realized (loss) on investments--Note 3.............................. $ (1,571,041) Net unrealized (depreciation) on investments............................ (10,483,903) --------------- NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (12,054,944) ------------- NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (1,880,518) ============= See independent accountants' review report and notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, Maryland Series STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED SIX MONTHS ENDED APRIL 30, OCTOBER 31, 1994 1994 (UNAUDITED) -------------- ---------------------- OPERATIONS: Investment income--net............................................... $ 20,691,632 $ 10,174,426 Net realized (loss) on investments................................... (231,661) (1,571,041) Net unrealized (depreciation) on investments for the period.......... (16,463,923) (10,483,903) -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 3,996,048 (1,880,518) -------------- -------------- DIVIDENDS TO SHAREHOLDERS: From investment income--net: Class A shares..................................................... (19,640,636) (9,349,671) Class B shares..................................................... (1,050,996) (824,755) From net realized gain on investments: Class A shares..................................................... (741,468) ____ Class B shares..................................................... (53,530) ____ In excess of net realized gain on investments: Class A shares..................................................... (4,187) ____ Class B shares..................................................... (302) ____ -------------- -------------- TOTAL DIVIDENDS................................................ (21,491,119) (10,174,426) -------------- -------------- BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from shares sold: Class A shares..................................................... 44,119,678 7,902,533 Class B shares..................................................... 27,026,693 3,938,468 Dividends reinvested: Class A shares..................................................... 12,863,992 5,929,113 Class B shares..................................................... 759,890 539,306 Cost of shares redeemed: Class A shares..................................................... (43,091,205) (29,765,148) Class B shares..................................................... (1,376,544) (1,375,163) -------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS................................................. 40,302,504 (12,830,891) -------------- -------------- TOTAL INCREASE (DECREASE) IN NET ASSETS.................. 22,807,433 (24,885,835) NET ASSETS: Beginning of period.................................................. 343,237,524 366,044,957 -------------- -------------- End of period........................................................ $366,044,957 $341,159,122 ============== ==============
SHARES ------------------------------------------------------------------------------- CLASS A CLASS B ----------------------------------- -------------------------------- YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED APRIL 30, OCTOBER 31, 1994 APRIL 30, OCTOBER 31, 1994 1994 (UNAUDITED) 1994 (UNAUDITED) ------------ ------------------- ---------- --------------- CAPITAL SHARE TRANSACTIONS: Shares sold...................... 3,339,080 634,282 2,042,409 316,534 Shares issued for dividends reinvested 978,190 478,309 57,973 43,526 Shares redeemed.................. (3,303,860) (2,400,331) (106,081) (111,061) ------------ ----------- ------------ ------------ NET INCREASE (DECREASE) IN SHARES OUTSTANDING....... 1,013,410 (1,287,740) 1,994,301 248,999 ============ ========== ========== ========= See independent accountants' review report and notes to financial statements.
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 Series' financial statements. CLASS A SHARES CLASS B SHARES ------------------------------------------------------------ ----------------------------- SIX MONTHS SIX MONTHS ENDED OCTOBER YEAR ENDED ENDED OCTOBER YEAR ENDED APRIL 30, 31, 1994 APRIL 30, 31, 1994 ----------------------------------------------- ---------------- PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED) 1993(1) 1994 (UNAUDITED) ------ ------ ------ ------ ------ ----------- ------- ------ ---------- Net asset value, beginning of period... $11.72 $11.61 $12.13 $12.43 $13.02 $12.46 $12.64 $13.02 $12.46 ------ ------ ------ ------ ------ ------ ------ ------ ------ INVESTMENT OPERATIONS: Investment income_net... .86 .85 .79 .76 .73 .36 .20 .65 .32 Net realized and unrealized gain (loss) on investments (.09) .53 .35 .68 (.53) (.42) .38 (.53) (.42) ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL FROM INVESTMENT OPERATIONS........ .77 1.38 1.14 1.44 .20 (.06) .58 .12 (.10) ------ ------ ------ ------ ------ ------ ------ ------ ------ DISTRIBUTIONS: Dividends from investment income_net. (.86) (.85) (.79) (.76) (.73) (.36) (.20) (.65) (.32) Dividends from net realized gain on investments (.02) (.01) (.05) (.09) (.03) --- --- (.03) --- Dividends in excess of net realized gain on investments... --- --- --- --- --- --- --- --- --- ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL DISTRIBUTIONS... (.88) (.86) (.84) (.85) (.76) (.36) (.20) (.68) (.32) ------ ------ ------ ------ ------ ------ ------ ------ ------ Net asset value, end of period $11.61 $12.13 $12.43 $13.02 $12.46 $12.04 $13.02 $12.46 $12.04 ====== ====== ====== ====== ------ ====== ====== ====== ====== TOTAL INVESTMENT RETURN(2).. 6.69% 12.24% 9.68% 11.93% 1.33% (1.13%)(3) 15.74%(3) .75% (1.69%)(3) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets. --- .21% .53% .69% .80% .89%(3) 1.09%(3) 1.37% 1.43%(3) Ratio of net investment income to average net assets 7.12% 6.98% 6.40% 5.93% 5.51% 5.67%(3) 4.55%(3) 4.82% 5.11%(3) Decrease reflected in above expense ratios due to under- takings by the Manager 1.11% .75% .41% .22% .10% .02%(3) .12%(3) .08% .02%(3) Portfolio Turnover Rate. 30.03% 1.45% 16.21% 17.92% 10.27% 9.28%(4) 17.92% 10.27% 9.28%(4) Net Assets, end of period (000's Omitted)....... $85,794 $179,959 $254,240 $337,307 $335,518 $308,667 $5,931 $30,527 $32,492 - ------------------------------ (1) From January 15, 1993 (commencement of initial offering) to April 30, 1993. (2) Exclusive of sales load. (3) Annualized. (4) Not annualized. See independent accountants' review report and notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, Maryland Series NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES: Premier State Municipal Bond Fund (the "Fund") is registered under the Investment Company Act of 1940 ("Act") as a non-diversified open-end management investment company and operates as a series company currently offering fifteen series including the Maryland Series (the "Series"). Dreyfus Service Corporation, until August 24, 1994, acted as the distributor of the Fund's shares. Dreyfus Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation ("Manager"). Effective August 24, 1994, the Manager became a direct subsidiary of Mellon Bank, N.A. On August 24, 1994, Premier Mutual Fund Services, Inc. (the "Distributor") was engaged as the Fund's distributor. The Distributor, located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of Institutional Administration Services, Inc., a provider of mutual fund administration services, the parent company of which is Boston Institutional Group, Inc. The Fund accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series' operations; expenses which are applicable to all series are allocated among them on a pro rata basis. The Series offers both Class A and Class B shares. Class A shares are subject to a sales charge imposed at the time of purchase and Class B shares are subject to a contingent deferred sales charge imposed at the time of redemption on redemptions made within five years of purchase. Other differences between the two Classes include the services offered to and the expenses borne by each Class and certain voting rights. (A) PORTFOLIO VALUATION: The Series' investments (excluding options and financial futures on municipal and U.S. treasury securities) are valued each business day by an independent pricing service ("Service") approved by the Board of Trustees. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgement of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Options and financial futures on municipal and U.S. treasury securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Investments not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. (B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Interest income, adjusted for amortization of premiums and original issue discounts on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. The Series follows an investment policy of investing primarily in municipal obligations of one state. Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the Series. PREMIER STATE MUNICIPAL BOND FUND, Maryland Series NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) (C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Series to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gain, if any, are normally declared and paid annually, but the Series may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code. To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the Series not to distribute such gain. (D) FEDERAL INCOME TAXES: It is the policy of the Series to continue to qualify as a regulated investment company, which can distribute tax exempt dividends, by complying with the applicable provisions of the Internal Revenue Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all Federal income and excise taxes. The Fund has an unused capital loss carryover of $620 available for Federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to April 30, 1994. The carryover does not include net realized securities losses from November 1, 1993 through April 30, 1994 which are treated, for Federal income tax purposes, as arising in fiscal 1995. If not applied, the carryover expires in fiscal 2002. NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES: (A) Pursuant to a management agreement ("Agreement") with the Manager, the management fee is computed at the annual rate of .55 of 1% of the average daily value of the Series' net assets and is payable monthly. The Agreement provides for an expense reimbursement from the Manager should the Funds' aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and extraordinary expenses, exceed the expense limitation of any state having jurisdiction over the Series for any full fiscal year. However, the Manager had undertaken from May 1, 1994 through June 30, 1994 to waive receipt of the management fee payable to it by the Series in excess of an annual rate of .50 of 1% (excluding certain expenses as described above) of the Series' average daily net assets and thereafter, had undertaken from July 1, 1994 through July 7, 1994 to reduce the management fee paid by the Series, to the extent that the Series' aggregate expenses (excluding certain expense as described above) exceeded specified annual percentages of the Series' average daily net assets. The reduction in management fee, pursuant to the undertakings, amounted to $32,614 for the six months ended October 31, 1994. Dreyfus Service Corporation retained $17,017 during the six months ended October 31, 1994 from commissions earned on sales of the Series' Class A shares. Prior to August 24,1994, Dreyfus Service Corporation retained $14,513 from contingent deferred sales charges imposed upon redemptions of the Series' Class B Shares. (B) On August 3, 1994, Series' shareholders approved a revised Distribution Plan with respect to Class B shares only (the "Class B Distribution Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the Class B Distribution Plan, effective August 24, 1994, the Fund pays the Distributor for distributing the Series' Class B shares at an annual rate of .50 of 1% of the value of the average daily net assets of Class B shares. Prior to August 24, 1994, the Distribution Plan ("prior Class B Distribution Plan") provided that the Series pay Dreyfus Service Corporation at an annual rate of .50 of 1% of the value of the Series' Class B shares average daily net assets, for the costs and expenses in connection with advertising, marketing and distributing the Series' Class B shares. Dreyfus Service Corporation made payments to one or more Service Agents based on the value of the Series' Class B shares owned by clients of the Service Agent. PREMIER STATE MUNICIPAL BOND FUND, Maryland Series NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) During the six months ended October 31, 1994, $30,969 was charged to the Series pursuant to the Class B Distribution Plan and $49,777 was charged to the Series pursuant to the prior Class B Distribution Plan. (C) Under the Shareholder Services Plan, the Series pays the Distributor, at an annual rate of .25 of 1% of the value of the average daily net assets of Class A and Class B shares for servicing shareholder accounts. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the Series and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents in respect of these services. The Distributor determines the amounts to be paid to Service Agents. From May 1, 1994 through August 23, 1994, $260,906 and $24,888 were charged to Class A and Class B shares, respectively, by Dreyfus Service Corporation. From August 24, 1994 through October 31, 1994, $151,339 and $15,485 were charged to Class A and Class B shares, respectively, by the Distributor pursuant to the Shareholder Services Plan. (D) Prior to August 24, 1994 certain officers and trustees of the Fund were "affiliated persons," as defined in the Act, of the Manager and/or Dreyfus Service Corporation. Each trustee who is not an "affiliated person" receives from the Fund an annual fee of $2,500 and an attendance fee of $250 per meeting. NOTE 3--SECURITIES TRANSACTIONS: The aggregate amount of purchases and sales of investment securities amounted to $57,109,337 and $73,704,370, respectively, for the six months ended October 31, 1994, and consisted entirely of long-term and short-term municipal investments. At October 31, 1994, accumulated net unrealized depreciation on investments was $5,175,272, consisting of $9,188,330 gross unrealized appreciation and $14,363,602 gross unrealized depreciation. At October 31, 1994, 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, Maryland Series REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS SHAREHOLDERS AND BOARD OF TRUSTEES PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES We have reviewed the accompanying statement of assets and liabilities, including the statement of investments, of Premier State Municipal Bond Fund, Maryland Series (one of the Series constituting the Premier State Municipal Bond Fund) as of October 31, 1994, and the related statements of operations and changes in net assets and financial highlights for the six month period ended October 31, 1994. These financial statements and financial highlights are the responsibility of the Fund's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, which will be performed for the full year with the objective of expressing an opinion regarding the financial statements and financial highlights taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the interim financial statements and financial highlights referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the statement of changes in net assets for the year ended April 30, 1994 and financial highlights for each of the five years in the period ended April 30, 1994 and in our report dated June 7, 1994, we expressed an unqualified opinion on such statement of changes in net assets and financial highlights. (Ernst & Young Signature Logo) New York, New York December 6, 1994 PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES 144 Glenn Curtiss Boulevard Uniondale, NY 11556 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 The Shareholder Services Group, Inc. P.O. Box 9671 Providence, RI 02940 Further information is contained in the Prospectus, which must precede or accompany this report. Printed in U.S.A. 052/616SA9410 Semi-Annual Report Premier State Municipal Bond Fund Maryland Series October 31, 1994 (Dreyfus Lion Logo) -----END PRIVACY-ENHANCED MESSAGE-----