-----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, Qxf6aE5K2tNtrFeldYL6xBnycstIq6l3tVfX1Qw/LbmSKjxtIAK/jQkv0ymxsaXn PVq1iLnAcAtwRoBkHUREbQ== 0000806176-95-000015.txt : 199507030000806176-95-000015.hdr.sgml : 19950703 ACCESSION NUMBER: 0000806176-95-000015 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19950630 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: 95551617 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 ANNUAL REPORT LETTER TO SHAREHOLDERS Dear Shareholder: At the close of your Series' fiscal year on April 30, 1995, the net asset value for Class A shares was $12.95, which was $.45 (3.60%) higher than the net asset value at inception on May 5, 1994. Income dividends of approximately $.756 per share were paid during this period, which translates into an annualized distribution rate per share of 5.65%, based on the April 30 closing maximum offering price. The net asset value for Class B shares was also $12.95, which was $.45 (3.60%) higher than the net asset value at inception on May 5, 1994. Income dividends of approximately $.693 per share were paid during this period, which translates into an annualized distribution rate per share of 5.43% based on the April 30 closing net asset value. We are pleased to report that all dividends paid from the net investment income during this period were exempt from Federal and State of Oregon personal income taxes.* The past fiscal year was marked by market turbulence and mixed economic signals. The Series saw both sides of the volatile market as the Bond Buyer 25 Bond Revenue Index moved approximately 117 basis points. We attempted to manage the Series through these difficult times by purchasing defensive coupons to balance the discount holdings in the portfolio and by shortening the average duration of the portfolio. Factors which negatively affected the performance of the Series during the past fiscal year included interest rate increases by the Federal Reserve Board, inflation pressures, and certain conditions in the municipal marketplace. By the first quarter of 1995, however, these pressures had abated and both the market and the Series began a strong recovery. As your Series' fiscal year progressed, new issuance of municipal bonds in the specialty state sector became progressively thin, which forced secondary market prices to high levels. Supply continued to be scant after the New Year, but our investment posture remained unchanged. Because we did not chase the roller-coaster market as it moved through the second and third fiscal quarters, the Series was well positioned to capitalize on the market strength which materialized during the last fiscal quarter. As a result, your Series was able to rebound to its current level. Overall, we view the prospect of a continuation of the current market rally with a cautious eye, since it appears that much of the appreciation expected for 1995 is already behind us. With this in mind, the Series remains fully invested to seek to take advantage of any additional market run-up in an environment witnessing a continued scarcity of securities, and to seek a high level of tax exempt income. We have included a current Statement of Investments and recent financial statements for your review. We appreciate your investment in the Series and look forward to serving your investment needs in the future. Sincerely, (Signaatuure Logo) Richard J. Moynihan Director, Municipal Portfolio Management The Dreyfus Corporation May 16, 1995 New York, N.Y. *Some income may be subject to the Federal Alternative Minimum Tax (AMT) for certain shareholders. PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES APRIL 30, 1995 COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES CLASS A SHARES AND CLASS B SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX $10,665 Lehman Brothers Municipal Bond Index* In Dollars $10,664 Premier State Municipal Bond Fund, Oregon Series (Class B Shares) $10,503 Premier State Municipal Bond Fund, Oregon Series (Class A Shares) *Source: Lehman Brothers
ACTUAL AGGREGATE TOTAL RETURNS CLASS A CLASS B --------------------------------------- -------------------------------------------------------- % Return Reflecting % Return Applicable Contingent Reflecting % Return Deferred Sales % Return Without Maximum Initial Assuming No Charge Upon Period ended 4/30/95 Sales Charge Sales Charge (4.5%) Period ended 4/30/95 Redemption Redemption* - --------------------- ------------ ------------------- -------------------- ---------- ---------------------- From Inception (5/5/94) 9.98% 5.02% From Inception (5/5/94) 9.44% 6.44%
Past performance is not predictive of future performance. Share price and investment return fluctuate and share price may be more or less than original cost upon redemption. The above graph compares a $10,000 investment made in Class A shares and Class B shares of Premier State Municipal Bond Fund, Oregon Series on 5/5/94 (Inception Date) to a $10,000 investment made in the Lehman Brothers Municipal Bond Index on that date. For comparative purposes the value of the Index on 4/30/94 is used as the beginning value on 5/5/94. All dividends and capital gain distributions are reinvested. The Series invests primarily in Oregon municipal securities and the performance shown in the line graph takes into account the maximum initial sales charge on Class A shares and a maximum contingent deferred sales charge on Class B shares and all other applicable fees and expenses. Unlike the Series, the Lehman Brothers Municipal Bond Index is an unmanaged total return performance benchmark for the long-term, investment grade, geographically unrestricted tax exempt bond market, calculated by using municipal bonds selected to be representative of the market. The Index does not take into account charges, fees and other expenses. Also, unlike the Fund which principally limits investments to Oregon municipal obligations, the Index is not state-specific. Further information relating to Series performance, including expense reimbursements, if applicable, is contained in the Condensed Financial Information section of the Prospectus and elsewhere in this report. *Maximum contingent deferred sales charge for Class B shares is 3% and is reduced to 0% after five years.
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES STATEMENT OF INVESTMENTS APRIL 30,1995 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS-86.5% AMOUNT VALUE ------------ ------------ OREGON-75.2% Beaverton, Water Revenue 6.125%, 6/1/2014 (Insured; FSA).................... $ 200,000 $ 201,346 Clackamas County School District 6.15%, 6/1/2014 (Insured; AMBAC)........... 200,000 203,200 Douglas County Hospital Facility Authority, Revenue, Refunding (Health Facilities-Catholic Health) 6%, 11/15/2015 (Insured; MBIA)...... 200,000 199,758 Eugene, Electric Utility Revenue 5.80%, 8/1/2019............................ 200,000 195,400 Multnomah County, Revenue 6.10%, 10/1/2014.................................. 200,000 203,138 State of Oregon, Department of Transportation, Revenue, Regional Light Rail Fund (Westside Project) 6.25%, 6/1/2009 (Insured; MBIA)..................... 200,000 208,104 State of Oregon, Elderly and Disabled Housing 6.10%, 8/1/2015............... 200,000 203,564 Oregon Health, Housing, Educational and Cultural Facilities Authority, Refunding (Lewis and Clark College Project) 6.125%, 10/1/2024 (Insured; MBIA) 200,000 200,558 Oregon Higher Education Building 6%, 12/1/2015.............................. 200,000 202,170 Oregon Housing and Community Services Department, SFMR 6.875%, 7/1/2028..... 200,000 205,514 Portland Sewer System, Revenue 6.25%, 6/1/2015.............................. 300,000 306,477 Salem, GO 5.70%, 8/1/2009 (Insured; MBIA)................................... 200,000 198,056 Salem-Keitzer School District 6%, 6/1/2014 (Insured; FGIC).................. 200,000 201,378 Tualatin Valley Water District, Water Revenue 6%, 6/1/2013.................. 200,000 203,716 Umatilla County School District 6%, 7/1/2014 (Insured; AMBAC)............... 200,000 201,274 Washington County School District - Beaverton 6%, 6/1/2012.................. 200,000 202,218 U.S. RELATED-11.3% Puerto Rico Electric Power Authority, Power Revenue 6%, 7/1/2014 (Insured; FSA)............................................. 500,000 503,590 ------------ TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $3,778,638)..................... $3,839,461 ============ SHORT-TERM MUNICIPAL INVESTMENTS-13.5% OREGON-9.0% State of Oregon, Economic Development Revenue, VRDN (Jae Oregon, Inc. Project) 5.075%, 3/1/1999 (LOC; The Bank of Tokyo, LTD.) (a)................ $ 400,000 $ 400,000 U.S. RELATED-4.5% Puerto Rico Electric Power Authority, Power Revenue 3.89%, 7/1/2023 (b)..... 200,000 200,000 ------------ TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $600,000)...................... $ 600,000 ============ TOTAL INVESTMENTS-100.0% (cost $4,378,638)....................................................... $4,439,461 ============
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES SUMMARY OF ABBREVIATIONS AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance FGIC Financial Guaranty Insurance Company Insurance Corporation FSA Financial Security Assurance SFMR Single Family Mortgage Revenue GO General Obligation VRDN Variable Rate Demand Notes LOC Letter of Credit
SUMMARY OF COMBINED RATINGS (UNAUDITED) FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE - -------- -------- ------------------ -------------------- AAA Aaa AAA 47.7% AA Aa AA 27.3 A A A 16.0 F-1 MIG1 SP1 9.0 -------- 100.0% ========
NOTES TO STATEMENT OF INVESTMENTS: (a) Secured by letter of credit. Securities payable on demand. The interest rate, which is subject to change, is based upon bank prime rates or an index of market rates. (b) Inverse floater security - the interest rate is subject to change periodically. (c) Fitch currently provides creditworthiness information for a limited number of investments. See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES STATEMENT OF ASSETS AND LIABILITIES APRIL 30,1995 ASSETS: Investments in securities, at value (cost $4,378,638)-see statement....................................... $4,439,461 Interest receivable..................................................... 83,952 Receivable for shares of Beneficial Interest subscribed................. 39,479 Prepaid expenses-Note 1(e).............................................. 22,599 Due from The Dreyfus Corporation........................................ 1,695 ---------- 4,587,186 LIABILITIES: Due to Distributor...................................................... $ 1,491 Due to Custodian........................................................ 195,475 Payable for shares of Beneficial Interest redeemed...................... 18,460 Accrued expenses and other liabilities.................................. 37,157 252,583 ------------ ---------- NET ASSETS ................................................................ $4,334,603 ========== REPRESENTED BY: Paid-in capital......................................................... $4,273,780 Accumulated net unrealized appreciation on investments-Note 3........... 60,823 ---------- NET ASSETS at value......................................................... $4,334,603 ========== Shares of Beneficial Interest outstanding: Class A Shares (unlimited number of $.001 par value shares authorized)............... 220,224 ========== Class B Shares (unlimited number of $.001 par value shares authorized)............... 114,490 ========== NET ASSET VALUE per share: Class A Shares ($2,851,704 / 220,224 shares)......................................... $12.95 ====== Class B Shares ($1,482,899 / 114,490 shares)......................................... $12.95 ====== See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES STATEMENT OF OPERATIONS FROM MAY 6, 1994 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1995 INVESTMENT INCOME: INTEREST INCOME......................................................... $164,596 EXPENSES: Management fee-Note 2(a).............................................. $15,174 Shareholder servicing costs-Note 2(c)................................. 14,592 Organization expenses-Note 1(e)....................................... 5,511 Distribution fees (Class B shares)-Note 2(b).......................... 5,333 Prospectus and shareholders' reports.................................. 3,472 Registration fees..................................................... 1,564 Custodian fees........................................................ 557 Professional fees..................................................... 529 Trustees' fees and expenses-Note 2(d)................................. 28 Miscellaneous......................................................... 2,860 ------- 49,620 Less-expense reimbursement from Manager due to undertakings-Note 2(a)............................................ 44,131 ------- TOTAL EXPENSES.................................................... 5,489 -------- INVESTMENT INCOME-NET....................................................... 159,107 NET UNREALIZED APPRECIATION ON INVESTMENTS.................................. 60,823 -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $219,930 ======== See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES STATEMENT OF CHANGES IN NET ASSETS FROM MAY 6, 1994 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1995 OPERATIONS: Investment income-net....................................................................... $ 159,107 Net unrealized appreciation on investments for the period................................... 60,823 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................. 219,930 ------------ DIVIDENDS TO SHAREHOLDERS FROM; Investment income-net: Class A shares............................................................................ (100,688) Class B shares............................................................................ (58,419) ------------ TOTAL DIVIDENDS...................................................................... (159,107) ------------ BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from shares sold: Class A shares............................................................................ 4,457,134 Class B shares............................................................................ 2,868,459 Dividends reinvested: Class A shares............................................................................ 86,034 Class B shares............................................................................ 53,564 Cost of shares redeemed: Class A shares............................................................................ (1,725,732) Class B shares............................................................................ (1,465,679) ------------ INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.......................... 4,273,780 ------------ TOTAL INCREASE IN NET ASSETS........................................................ 4,334,603 NET ASSETS: Beginning of period......................................................................... - =========== End of period............................................................................... $ 4,334,603 ============
SHARES ------------------------ CLASS A CLASS B ------------ ------------ CAPITAL SHARE TRANSACTIONS: Shares sold................................................................... 352,683 227,550 Shares issued for dividends reinvested........................................ 6,837 4,254 Shares redeemed............................................................... (139,296) (117,314) ------------ ------------ NET INCREASE IN SHARES OUTSTANDING...................................... 220,224 114,490 ============ ============ See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OREGON 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 the period May 6, 1994 (commencement of operations) to April 30, 1995. This information has been derived from the Series' financial statements. PER SHARE DATA: CLASS A SHARES CLASS B SHARES --------------- --------------- Net asset value, beginning of period............................... $12.50 $12.50 ------- ------- INVESTMENT OPERATIONS: Investment income-net .76 .69 Net unrealized gain on investments................................. .45 .45 ------- ------- TOTAL FROM INVESTMENT OPERATIONS.................................. 1.21 1.14 ------- ------- DISTRIBUTIONS; Dividends from investment income-net .............................. (.76) (.69) ------- ------- Net asset value, end of period..................................... $12.95 $12.95 ======= ======= TOTAL INVESTMENT RETURN (1)(2)......................................... 10.12% 9.57% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets (2)........................ .01% .51% Ratio of net investment income to average net assets (2)........... 5.95% 5.47% Decrease reflected in above expense ratios due to undertakings by the Manager (2)............................................... 1.59% 1.62% Portfolio Turnover Rate............................................ -- -- Net Assets, end of period (000's Omitted).......................... $2,852 $1,483 - -------------------- (1) Exclusive of sales load. (2) Annualized. See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES NOTES TO FINANCIAL STATEMENTS 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 Oregon Series (the "Series") which commenced operations on May 6, 1994. 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. As of April 30, 1995 Major Trading Corporation, a subsidiary of Mellon Bank Investments Corporation, held 103,036 shares of Class A and 77,729 shares of Class B. Mellon Bank Investments Corporation is a subsidiary of Mellon Bank. 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 FDI Distribution Services, Inc., a provider of mutual fund administration services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company of which is Boston Institutional Group, Inc. The 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 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 PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES NOTES TO FINANCIAL STATEMENTS (CONTINUED) 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. (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, if any, 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. (E) OTHER: Organization expenses paid by the Series are included in prepaid expenses and are being amortized to operations from May 6, 1994, the date operations commenced, over the period during which it is expected that a benefit will be realized, not to exceed five years. At April 30, 1995, the unamortized balance of such expenses amounted to $22,046. NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES: (A) Pursuant to a management agreement ("Agreement") with the Manager, the management fee is computed at the annual rate of .55 of 1% of the average daily value of the Series' net assets and is payable monthly. The Agreement provides for an expense reimbursement from the Manager should the Series' aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and extraordinary expenses, exceed the expense limitation of any state having jurisdiction over the Series for any full fiscal year. However, the Manager had undertaken from May 6, 1994 through April 2, 1995, to reimburse all fees and expenses of the Series (excluding 12b-1 distribution plan fees and certain expenses as described above), and thereafter through April 30, 1995, to reduce the shareholder services plan fee paid by and reimburse such excess expenses of the Series, to the extent that the Series' aggregate expenses (excluding certain expenses as described above) exceeded specified annual percentages of the Series' average daily net assets. The expense reimbursement, pursuant to the undertakings, amounted to $44,131 for the period ended April 30, 1995. The Manager has currently undertaken through June 30, 1995 or until such time as the net assets of the Series exceed $50 million, regardless of whether they remain at that level, to reimburse all fees and expenses of the Series (excluding 12b-1 distribution plan fees, shareholder services plan fees and certain expenses as described above). The undertaking may be modified by the Manger from time to time, provided that the resulting expense reimbursement would not be less than the amount required pursuant to the Agreement. (B) On August 3, 1994, the 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 PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES NOTES TO FINANCIAL STATEMENTS (CONTINUED) 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. During the year ended April 30, 1995, $4,598 was charged to the Series pursuant to the Class B Distribution Plan and $735 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 Serv ice Agents in respect of these services. The Distributor determines the amounts to be paid to Service Agents. From May 6, 1994 through August 23, 1994, $527 and $368 were charged to Class A and Class B shares, respectively, by Dreyfus Service Corporation. From August 24, 1994 through April 30, 1995, $3,703 and $2,299 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. The Chairman of the Board receives an additional 25% of such compensation. NOTE 3-SECURITIES TRANSACTIONS: The aggregate amount of purchases and sales of investment securities amounted to $5,078,626 and $700,000, respectively, for the period ended April 30, 1995, and consisted entirely of long-term and short-term municipal investments. At April 30, 1995, accumulated net unrealized appreciation on investments was $60,823, consisting of $62,836 gross unrealized appreciation and $2,013 gross unrealized depreciation. At April 30, 1995, the cost of investments for Federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS SHAREHOLDERS AND BOARD OF TRUSTEES PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Premier State Municipal Bond Fund, Oregon Series (one of the series constituting the Premier State Municipal Bond Fund) as of April 30, 1995, and the related statements of operations and changes in net assets and financial highlights for the period from May 6, 1994 (commencement of operations) to April 30, 1995. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 1995 by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Premier State Municipal Bond Fund, Oregon Series at April 30, 1995, and the results of its operations, the changes in its net assets and the financial highlights for the period from May 6, 1994 to April 30, 1995, in conformity with generally accepted accounting principles. (Ernst & Young LLP Signature Logo) New York, New York June 6, 1995 PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES IMPORTANT TAX INFORMATION (UNAUDITED) In accordance with Federal tax law, the Series hereby designates all the dividends paid from investment income--net during the period May 6, 1994 (commencement of operations) to April 30, 1995 as "exempt--interest dividends" (not subject to regular Federal and, for individuals who are Oregon residents, Oregon personal income taxes). As required by Federal tax law rules, shareholders will receive notification of their portion of the Series' taxable ordinary dividends (if any) and capital gain distributions (if any) paid for the 1995 calendar year on Form 1099--DIV which will be mailed by January 31, 1996. PREMIER STATE MUNICIPAL BOND FUND, OREGON 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 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. 019/373AR954 Annual Report PREMIER STATE MUNICIPAL BOND FUND OREGON SERIES April 30, 1995 (Dreyfus Logo) EX-99.A 2 GRAPH IN THE PRESIDENT'S LETTER OF THE ANNUAL REPORT COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER STATE MUNICIPAL BOND FUND, OREGON SERIES CLASS A SHARES AND CLASS B SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX EXHIBIT A: |--------------------------------------------------------------| | | | PREMIER STATE | PREMIER STATE | | | LEHMAN | MUNICIPAL | MUNICIPAL | | PERIOD | BROTHERS | BOND FUND, | BOND FUND, | | | MUNICIPAL | OREGON SERIES | OREGON SERIES | | | BOND INDEX * |(CLASS A SHARES) |(CLASS B SHARES) | |----------|--------------|-----------------|---------------- | | 5/5/94 | 10,000 | 9,549 | 10,000 | | 7/31/94 | 10,209 | 9,994 | 10,461 | | 10/31/94 | 9,915 | 9,564 | 9,991 | | 1/31/95 | 10,234 | 10,171 | 10,611 | | 4/30/95 | 10,665 | 10,503 | 10,644 | |--------------------------------------------------------------| *Source: Lehman Brothers -----END PRIVACY-ENHANCED MESSAGE-----