-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TAHmGVYf0IYgLmyLrsGSyAYBsaXKs+ujD3Exha2OHSLl7iGCXGQfpGJ8UG2BjvE6 NIo7FmW4B2orDvTk9SSi2A== 0000806176-96-000027.txt : 19960708 0000806176-96-000027.hdr.sgml : 19960708 ACCESSION NUMBER: 0000806176-96-000027 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960430 FILED AS OF DATE: 19960705 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: 96591498 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 PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES LETTER TO SHAREHOLDERS Dear Shareholder: We are pleased to provide you with this report on the Premier State Municipal Bond Fund - Ohio Series. For its annual reporting period ended April 30, 1996, your Series produced a total return of 6.77% for Class A shares, 6.19% for Class B shares and, since their inception on August 15, 1995, 4.03% for Class C shares.* Income dividends, exempt from Federal and State of Ohio personal income taxes, of approximately $.708 for Class A shares, $.639 for Class B shares and $.425 for Class C shares were paid.** This amounts to an annualized tax-free distribution rate per share of 5.28%, 4.99% and 4.67% for Class A, Class B and Class C shares respectively.*** THE ECONOMY Concerns that the economy was heading toward recession were eased by the recent release of brighter-than-expected reports on employment and consumer spending. Consequently, the Federal Reserve Board refrained from making any further reductions in the Federal Funds rate; the last easing of this benchmark interest rate occurred on January 31. In reaction to the more optimistic economic news (and the related fears of a potential rekindling of inflation), long-term interest rates as measured by 30-year Treasury bonds have risen nearly one percentage point since February. The rosier outlook for the economy was spearheaded by reports of large gains in employment for two consecutive months (February and March). Furthermore, personal income and expenditures data indicated that consumers continued to spend, despite their present high level of installment credit. Retail sales reports have correspondingly edged higher, confirming a modest recovery in consumer spending from its year-end slump. Supporting the growing consensus that the economy has picked up steam were reports of slow but steady growth in the manufacturing sector. After data for the 17-day General Motors strike was adjusted, industrial output rose modestly. New orders for durable goods, a closely watched indicator of future hiring and production, also posted gains. Despite the economy's apparent recovery from its year-end pause, inflation has remained under control. Through March of this year, the Consumer Price Index rose at an annual rate of 2.8%. There appear to be few signs of inflationary pressure in the economy. Factories are running at a relatively comfortable rate of capacity (82.5%), markedly below this expansion's peak of 85.1% reached over a year ago. With major industries trying to reduce inventories, there is little to suggest that product pricing will surge upwards. Reflecting this absence of so-called pipeline inflationary pressure, price increases at both the wholesale and production levels of the economy remained similarly under control. We believe the cautionary stance of the Federal Reserve regarding additional reductions in interest rates combined with the fiscal restraint from reduced government spending should serve as additional moderating forces against any resurgence in inflation. We are mindful, however, of a potential change in what has been a benign inflation picture. The recent rise in oil prices, along with strength in other commodity prices such as grain, is not to be dismissed lightly. While they may be only aberrations of a temporary nature, they also could represent early warning signs of a fundamental change in inflation which will be seen later in the year. MARKET ENVIRONMENT For much of the first three quarters of your Series' fiscal year, ended April 30, fixed-income securities were buoyed by signs that the economy's most recent period of growth was drawing to a close. As investors reviewed statistical data for job creation, personal income and consumption and housing starts, a consensus emerged that the slowing economy foretold a much more favorable environment for bonds. As the calendar year drew to a close, long-term interest rates were driven to their lowest levels in more than two years. Such optimism proved short-lived, however, as subsequent data indicated that the economy had merely experienced a temporary decline in its growth rate. This was quickly reversed with the turn of the calendar into 1996. As forecasts for growth and inflation were adjusted upward, interest rates were forced higher as well, at a pace rarely seen in recent years. While Ohio municipal bonds were unable to avoid this rapid adjustment, their prices were supported by a lack of supply - a formidable technical dynamic which they have enjoyed for much of the past year. Thus, the rise in yields of Ohio exempt securities was much more muted than that of their taxable counterparts. THE PORTFOLIO In managing your Series' assets during this period of volatility, a decidedly conservative posture was maintained. Early in the fiscal year, the portfolio's duration was extended in order to capitalize on the market's strength. As market perceptions turned more tentative, emphasis was shifted toward those issues offering generous levels of income with relatively low principal volatility. At times higher levels of cash reserves were established in order to further buffer the portfolio from the consequences of rising interest rates. Throughout the period, we looked for issues bearing higher degrees of creditworthiness and strong characteristics of protection from redemption prior to maturity. In this way, the portfolio's liquidity was enhanced by securing those issues enjoying broad measures of acceptance both within the Ohio community and in the National Municipal Market. Included in this report is a series of detailed statements about your Series' holdings and its financial condition. We hope they are informative. Please know that we greatly appreciate your continued confidence in the Series and in The Dreyfus Corporation. Sincerely, (Richard J. Moynihan - signature) Richard J. Moynihan Director, Municipal Portfolio Management The Dreyfus Corporation May 15, 1996 New York, N.Y. * Total return includes reinvestment of dividends and any capital gains paid, without taking into account 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 shares and Class C shares. **Some income may be subject to the Federal Alternative Minimum Tax (AMT) for certain shareholders. *** Annualized distribution rate per share is based upon dividends per share paid from net investment income during the period, divided by the maximum offering price, in the case of Class A shares, or the net asset value per share, in the case of Class B and Class C shares, at the end of the period, adjusted for capital gain distributions. PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES APRIL 30, 1996 COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX Dollars $20,644 Lehman Brothers Municipal Bond Index* $15,396 Premier State Municipal Bond Fund, Ohio Series (Class A Shares) *Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURNS CLASS A SHARES CLASS B SHARES _____________________________________________________________ _____________________________________________________________ % Return Reflecting % Return Applicable Contingent Reflecting % Return Deferred Sales % Return Without Maximum Initial Assuming No Charge Upon PERIOD ENDED 4/30/96 Sales Charge Sales Charge (4.5%) PERIOD ENDED 4/30/96 Redemption Redemption* ____________________ ________________ ___________________ ________________________ _____________ _______________________ 1 Year 6.77% 1.99% 1 Year 6.19% 3.20% 5 Year 7.61 6.62 From Inception (1/15/93) 5.56 5.02 From Inception (5/28/87) 5.49 4.95
ACTUAL AGGREGATE TOTAL RETURNS CLASS C SHARES _____________________________________________________________ % Return Reflecting Applicable Contingent % Return Deferred Sales Assuming No Charge Upon PERIOD ENDED 4/30/96 Redemption Redemption** ____________________ ______________ _____________________ From Inception (8/15/95) 4.03% 3.04% Past performance is not predictive of future performance. The above graph compares a $10,000 investment made in Class A shares of Premier State Municipal Bond Fund, Ohio Series on 5/28/87 (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 5/31/87 is used as the beginning value on 5/28/87. All dividends and capital gain distributions are reinvested. Performance for Class B and Class C shares will vary from the performance of Class A shares shown above due to differences in charges and expenses. The Series invests primarily in Ohio municipal securities and its performance shown in the line graph takes into account the maximum initial sales charge on Class A shares and all other applicable fees and expenses. Unlike the Series, the Lehman Brothers Municipal Bond Index is an unmanaged total return performance benchmark for the long-term, investment-grade, geographically unrestricted tax exempt bond market, calculated by using municipal bonds selected to be representative of the municipal market overall. The Index does not take into account charges, fees and other expenses. Also, unlike the Fund which principally limits investments to Ohio municipal obligations, the Index is not State specific. These factors can contribute to the Index potentially outperforming the Series. Further information relating to Series performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. * Maximum contingent deferred sales charge for Class B shares is 3% and is reduced to 0% after five years. **Maximum contingent deferred sales charge for Class C shares is 1% within one year of the date of purchase.
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES STATEMENT OF INVESTMENTS APRIL 30, 1996 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS-99.3% AMOUNT VALUE ________________ ________________ OHIO-95.5% Akron, Waterworks System Mortgage Revenue Improvement: 6%, 3/1/2014 (Insured; FGIC)............................................ $ 1,000,000 $ 1,016,610 Refunding 4.875%, 3/1/2012 (Insured; MBIA).............................. 2,250,000 2,039,355 Akron Bath Copley Joint Township Hospital District, Revenue (Summa Health Systems) 5.75%, 11/15/2008................................ 5,000,000 4,880,000 Akron-Wilbeth Housing Development Corp., First Mortgage Revenue 7.90%, 8/1/2003 (Insured; FHA).......................................... 1,805,000 2,077,410 Allen County, Industrial First Mortgage Revenue, Refunding 6.75%, 11/15/2008 (Guaranteed; K-Mart Corp.)............................ 1,280,000 1,135,104 Anthony Wayne Local School District 5.75%, 12/1/2024 (Insured; FGIC)........ 1,000,000 988,190 Breckville-Broadview Heights City School District, School Improvement 5.25%, 12/1/2021 (Insured; FGIC)....................................... 5,000,000 4,632,250 Butler County: Hospital Facilities Revenue, Refunding and Improvement (Fort Hamilton Hughes Hospital) 7.25%, 1/1/2001....................... 4,000,000 4,099,280 Sewer System Revenue 5.25%, 12/1/2021 (Insured; AMBAC).................. 1,500,000 1,385,925 City of Barberton, Hospital Facilities Revenue (The Barberton Citizens Hospital Co. Project) 7.25%, 1/1/2012........... 2,400,000 2,549,424 Buckeye Valley Local School District 5.25%, 12/1/2020 (Insured; MBIA)........................................ 3,140,000 2,917,028 Celina City School District 5.25%, 12/1/2020 (Insured; FGIC)................ 1,750,000 1,610,700 City of Cambridge, HR Refunding (Guernsey Memorial Hospital Project) 8%, 12/1/2006........................................................... 2,000,000 2,150,880 Clermont County, Hospital Facilities Revenue, Refunding (Mercy Health Systems): 6%, 9/1/2019 (Insured; AMBAC)........................................... 2,000,000 2,006,180 7.50%, 9/1/2019 (Prerefunded 9/1/2001) (Insured; AMBAC) (a)............. 180,000 203,573 City of Cleveland: COP (Motor Vehicle, Motorized and Communication Equipment) 7.10%, 7/1/2002 2,000,000 2,086,720 Parking Facility Improvement Revenue 8%, 9/15/2012...................... 5,000,000 5,444,100 Waterworks First Mortgage Revenue: 5.50%, 1/1/2013 (Insured; MBIA)....................................... 2,660,000 2,626,936 5.50%, 1/1/2021 (Insured; MBIA)....................................... 5,000,000 4,794,550 Cleveland City School District, School Improvement 8%, 12/1/2001............ 1,675,000 1,901,292 Cuyahoga County: 5.25%, 11/15/2015....................................................... 1,485,000 1,381,198 HR: (Meridia Health Systems): 7.25%, 8/15/2019.................................................. 4,715,000 5,047,454 7%, 8/15/2023..................................................... 1,750,000 1,863,155 PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE ________________ ________________ OHIO (CONTINUED) Cuyahoga County (continued): HR: Refunding: (Cleveland Clinic Foundation) 8%, 12/1/2015....................... $ 1,000,000 $ 1,049,530 Improvement (University Hospitals Health) 5.625%, 1/15/2015 (Insured; MBIA)............................................................. 3,695,000 3,615,225 (Mount Sinai Medical Center) 8.125%, 11/15/2014................... 1,000,000 1,059,940 Jail Facilities 7%, 10/1/2013 (Prerefunded 10/1/2001) (a)............... 6,125,000 6,885,480 Delaware City School District 5.75%, 12/1/2020 (Insured; FGIC).............. 1,000,000 988,920 Eaton, IDR Refunding (Baxter International Inc. Project) 6.50%, 12/1/2012... 1,500,000 1,573,545 Euclid City School District, Improvement: 7.10%, 12/1/2011 (Prerefunded 12/1/2001) (a)............................ 1,000,000 1,129,290 Library and School, Refunding 5.125%, 12/1/2015 (Insured; AMBAC)........ 1,420,000 1,318,796 Village of Evendale, IDR Refunding (Ashland Oil Inc. Project) 6.90%, 11/1/2010 2,000,000 2,078,720 Fairfield City School District, School Improvement Unlimited Tax: 7.20%, 12/1/2011 (Insured; FGIC)........................................ 1,000,000 1,146,770 7.20%, 12/1/2012 (Insured; FGIC)........................................ 1,250,000 1,433,463 6.10%, 12/1/2015 (Insured; FGIC)........................................ 2,000,000 2,048,700 6%, 12/1/2020 (Insured; FGIC)........................................... 2,000,000 2,028,240 Fairlawn, Health Care Facilities Revenue (Village at Saint Edward Project) 8.75%, 10/1/2019........................................................ 2,420,000 2,602,420 Fairview Park City School District, 5.25%, 12/15/2013 (Insured; AMBAC)...... 2,000,000 1,934,040 Franklin County: Hospital Improvement Revenue (The Children's Hospital Project) 6.60%, 11/1/2011 (Prerefunded 11/1/2001) (a).......................... 1,500,000 1,660,245 HR: (Holy Cross Health Systems Corp.-Mount Carmel Health) 6.75%, 6/1/2019 (Insured; MBIA)................................... 2,500,000 2,665,525 Refunding Improvement: (The Children's Hospital Project) 6.60%, 5/1/2013................. 4,000,000 4,183,760 (Worthington Christian Village Congregate Care Project): 10.25%, 8/1/2015................................................ 805,000 882,385 7.80%, 2/1/2017 (Insured; FHA).................................. 5,690,000 6,067,190 Gallia County Local School District, 7.375%, 12/1/2004...................... 570,000 659,268 Greater Cleveland Gateway Economic Development Corp.: Senior Lien Excise Tax Revenue 6.875%, 9/1/2005 (Insured; FSA).......... 1,500,000 1,630,020 Stadium Revenue 7.50%, 9/1/2005......................................... 5,675,000 6,221,389 Hamilton County: Hospital Facilities Improvement Revenue, Refunding (Deaconess Hospital) 7%, 1/1/2012.......................................................... 2,570,000 2,713,792 Mortgage Revenue (Judson Care Center) 7.80%, 8/1/2019 (Insured; FHA).... 3,970,000 4,219,832 PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE ________________ ________________ OHIO (CONTINUED) Hamilton County (continued): Sewer Systems Improvement Revenue, Refunding 5.50%, 12/1/2017 (Insured; FGIC)...................................... $ 5,500,000 $ 5,314,430 Hilliard School District, School Improvement: Zero Coupon, 12/1/2013 (Insured; FGIC).................................. 1,655,000 606,541 Zero Coupon, 12/1/2014 (Insured; FGIC).................................. 1,655,000 567,748 5.75%, 12/1/2019 (Insured; FGIC)........................................ 4,500,000 4,451,085 5%, 12/1/2020 (Insured; FGIC)........................................... 1,600,000 1,434,304 Kirtland Local School District 7.50%, 12/1/2009............................. 760,000 827,161 Knox County, IDR (Weyerhaeuser Co. Project) 9%, 10/1/2007................... 1,000,000 1,251,330 Lakota Local School District 6.125%, 12/1/2017 (Insured; AMBAC)............. 1,075,000 1,103,133 Lorain, Water System Revenue 5.20%, 4/1/2016 (Insured; AMBAC)............... 2,260,000 2,109,800 Lorain County, HR Refunding (EMH Regional Medical Center) 5.375%, 11/1/2021 (Insured; AMBAC)...................................... 4,650,000 4,287,067 Lowellville, Sanitary Sewer Systems Revenue (Browning-Ferris Industries Inc.) 7.25%, 6/1/2006......................................................... 1,300,000 1,369,849 Mahoning County, Health Care Facilities Revenue: (Western Reserve Care System) 5.50%, 10/15/2025 (Insured; MBIA)......... 2,450,000 2,305,646 (Youngstown Osteopathic Hospital Project) 7.60%, 8/1/2010 (LOC; Marine Midland Bank) (b)........................ 3,775,000 4,073,565 Marion County, Health Care Facilities Revenue (United Church Homes Inc.) Refunding and Improvement 6.375%, 11/15/2010............................ 3,000,000 2,945,610 Miami County, Hospital Facilities Revenue, Refunding (Upper Valley Medical Center) 8.375%, 5/1/2013.......................... 525,000 549,397 Moraine, SWDR (General Motors Corp. Project) 6.75%, 7/1/2014......................................................... 5,000,000 5,458,750 Mount Vernon City School District 5.85%, 12/1/2019 (Insured; FGIC).......... 1,000,000 989,220 Muskingum County, Revenue, Refunding: (Franciscan Health Advisory Services) 7.50%, 3/1/2012................... 3,185,000 3,345,811 Hospital Facilities Improvement (Bethesda Care System) 5.40%, 12/1/2016 (Insured; Connie Lee)................................ 2,755,000 2,587,221 North Royalton City School District 6.10%, 12/1/2019 (Insured; MBIA)........ 2,000,000 2,057,780 State of Ohio: Economic Development Revenue: Ohio Enterprise Bond Fund (VSM Corp. Project) 7.375%, 12/1/2011....... 885,000 932,781 (Sponge Inc. Project) 8.375%, 6/1/2014................................ 1,640,000 1,814,479 Mortgage Revenue (Odd Fellows Home Ohio Inc. Project) 8.15%, 8/1/2017 (Insured; FHA)........................................ 350,000 371,263 PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE ________________ ________________ OHIO (CONTINUED) State of Ohio (continued): PCR (Standard Oil Co. Project) 6.75%, 12/1/2015 (Guaranteed; British Petroleum Co. p.l.c.)........... $ 2,700,000 $ 3,007,881 Ohio Air Quality Development Authority, Revenue: 8.10%, 9/1/2018......................................................... 1,000,000 1,056,640 Pollution Control Refunding: (Cleveland Electric Illuminating Co. Project) 6.85%, 7/1/2023......... 5,250,000 4,901,663 (Ohio Edison) 7.45%, 3/1/2016 (Insured; FGIC)......................... 3,500,000 3,832,325 Refunding: (JMG Funding Limited Partnership Project) 6.375%, 4/1/2029 (Insured; AMBAC) 2,500,000 2,568,775 (Ohio Power Co. Project) 7.40%, 8/1/2009.............................. 1,500,000 1,572,615 Ohio Building Authority, State Facilities: (Administration Building Fund Projects): 4.875%, 10/1/2009..................................................... 2,500,000 2,307,150 4.875%, 10/1/2010..................................................... 1,735,000 1,581,921 (Adult Correctional Facilities Building Fund Projects) 5.90%, 10/1/2012 (Insured; MBIA) 1,000,000 1,023,780 (Adult Correctional Facilities Building Fund Projects) 5.50%, 4/1/2016 (Insured; AMBAC)............................................................ 2,000,000 1,926,140 (Juvenile Correctional Building Fund Projects) 6.60%, 10/1/2014 (Insured; AMBAC) 1,660,000 1,768,680 Ohio Capital Corp. for Housing, MFHR Refunding 7.60%, 11/1/2023 (Collateralized; FNMA)................................. 1,250,000 1,328,400 Ohio Higher Educational Facility Community, Revenue (Case Western Reserve Project): 7.70%, 10/1/2018 (Prerefunded 10/1/1997) (a).......................... 485,000 516,855 7.70%, 10/1/2018...................................................... 15,000 15,847 Ohio Housing Finance Agency: Mortgage Revenue (Saint Francis Court Apartment Project) 8%, 10/1/2026 (Insured; FHA).......................................... 695,000 744,435 SFMR (GNMA Mortgage Backed Securities Program): 8.25%, 12/15/2019 .................................................... 165,000 173,616 8.125%, 3/1/2020...................................................... 365,000 384,389 Zero Coupon, 9/1/2021................................................. 17,545,000 2,324,011 7.85%, 9/1/2021....................................................... 1,880,000 1,971,142 7.65%, 3/1/2029....................................................... 5,325,000 5,591,357 7.80%, 3/1/2030....................................................... 3,005,000 3,160,419 Ohio Turnpike Commission, Turnpike Revenue 5.75%, 2/15/2024................. 3,250,000 3,142,555 Ohio Water Development Authority, Revenue: (Fresh Water Development) 5.90%, 12/1/2015 (Insured; AMBAC)............. 4,000,000 4,001,360 Pollution Control Facilities: (Cleveland Electric Illuminating Project) 8%, 10/1/2023............... 5,800,000 5,895,932 (Ohio Edison) 8.10%, 10/1/2023........................................ 3,700,000 3,924,109 PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE ________________ ________________ OHIO (CONTINUED) Ohio Water Development Authority, Revenue (continued): Pollution Control Facilities (continued): (Pennsylvania Power Co. Project) 8.10%, 9/1/2018...................... $ 2,000,000 $ 2,112,740 Refunding: (Ohio Edison) 7.625%, 7/1/2023.................................... 5,000,000 5,299,200 (Toledo Edison Co.): 7.55%, 6/1/2023................................................. 2,000,000 2,023,900 8%, 10/1/2023................................................... 3,635,000 3,724,094 Ottawa County, Sanitary Sewer Systems Special Assessment (Portage-Catawba Island Sewer Project) 7%, 9/1/2011 (Insured; AMBAC).... 1,000,000 1,101,250 Shelby County, Hospital Facilities Revenue, Refunding and Improvement (The Shelby County Memorial Hospital Association) 7.70%, 9/1/2018....... 2,500,000 2,628,075 South Euclid, Recreation Facilities 7%, 12/1/2011........................... 2,285,000 2,462,636 South Western City School District, (Franklin and Pickway Counties) 5%, 12/1/2013 (Insured; MBIA)........................................... 2,825,000 2,579,225 Southwest Regional Water District, Water Revenue: 6%, 12/1/2015 (Insured; MBIA)........................................... 1,600,000 1,626,848 6%, 12/1/2020 (Insured; MBIA)........................................... 1,250,000 1,266,037 Springboro Community City School District, Refunding 5.10%, 12/01/2023 (Insured; AMBAC)...................................... 6,000,000 5,421,300 Springdale, Hospital Facilities First Mortgage Revenue, (Southwestern Seniors Services, Inc.) 5.875%, 11/1/2012................. 3,000,000 2,804,730 Student Loan Funding Corp.: Student Loan Revenue, Refunding 7.20%, 8/1/2003......................... 3,115,000 3,293,801 Student Loan Senior Subordinated Revenue 6.15%, 8/1/2010................ 6,775,000 6,663,890 Sylvania City School District 5.75%, 12/1/2022 (Insured; FGIC).............. 1,750,000 1,732,255 University of Cincinnati, COP 6.75%, 12/1/2009 (Insured; MBIA).............. 750,000 815,235 University of Ohio, General Receipts, 5%, 12/1/2018 (Insured; FGIC)......... 1,250,000 1,112,675 Warren 7.75%, 11/1/2010 (Prerefunded 11/1/2000) (a)......................... 2,785,000 3,202,583 U.S. RELATED-3.8% Puerto Rico Highway and Transportation Authority, Highway Revenue 5.45%, 7/1/2007......................................................... 5,500,000 5,299,250 Virgin Islands Public Finance Authority, Revenue Refunding Matching Fund Loan Notes 7.25%, 10/1/2018............................... 2,200,000 2,314,994 Virgin Islands Water and Power Authority, Electric Systems Revenue 7.40%, 7/1/2011 3,450,000 3,652,550 ________________ TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $281,807,598)..................................................... $291,247,035 ================ PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 PRINCIPAL SHORT-TERM MUNICIPAL INVESTMENTS-.7% AMOUNT VALUE ________________ ________________ OHIO; Cuyahoga County Ohio Hospital Revenue VRDN 4.15%, (LOC; The Dai-Ichi Kangyo Bank) (b,c) (cost $2,000,000)....................................................... $ 2,000,000 $ 2,000,000 ================= TOTAL INVESTMENTS-100.0% (cost $283,807,598)..................................................... $293,247,035 =================
SUMMARY OF ABBREVIATIONS AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit COP Certificate of Participation MBIA Municipal Bond Investors Assurance FGIC Financial Guaranty Insurance Company Insurance Corporation FHA Federal Housing Administration MFHR Multi-Family Housing Revenue FNMA Federal National Mortgage Association PCR Pollution Control Revenue FSA Financial Security Assurance SFMR Single-Family Mortgage Revenue GNMA Government National Mortgage Association SWDR Solid Waste Disposal Revenue HR Hospital Revenue VRDN Variable Rate Demand Notes IDR Industrial Development Revenue
SUMMARY OF COMBINED RATINGS (UNAUDITED) FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE _____________ ____________ __________________ _____________________ AAA Aaa AA 44.0% AA Aa AA 8.9 A A A 22.8 BBB Baa BBB 15.3 B B B 6.0 F1 MIG1 SP1 .7 Not Rated(e) Not Rated(e) Not Rated(e) 2.3 _________ 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) Secured by letters of credit. (c) Security payable on demand. The interest rate, which is subject to change, is based upon prime rates or an index of market interest rates. (d) Fitch currently provides creditworthiness information for a limited number of investments. (e) 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 Series may invest. (f) At April 30, 1996, the Series had $81,418,173 (27.3% of net assets) invested in securities whose payment of principal and interest is dependent upon revenues generated from health care projects. See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 ASSETS: Investments in securities, at value (cost $283,807,598)-see statement..................................... $293,247,035 Interest receivable..................................................... 5,282,357 Receivable for investment securities sold............................... 972,801 Receivable for shares of Beneficial Interest subscribed................. 156,757 Prepaid expenses........................................................ 9,345 _____________ 299,668,295 LIABILITIES: Due to The Dreyfus Corporation.......................................... $134,689 Due to Distributor...................................................... 77,621 Due to Custodian........................................................ 141,842 Payable for investment securities purchased............................. 942,276 Payable for shares of Beneficial Interest redeemed...................... 202,537 Accrued expenses........................................................ 53,692 1,552,657 _____________ ____________ NET ASSETS.................................................................. $298,115,638 ============ REPRESENTED BY: Paid-in capital......................................................... $286,947,311 Accumulated undistributed net realized gain on investments.............. 1,728,890 Accumulated net unrealized appreciation on investments-Note 3........... 9,439,437 ____________ NET ASSETS at value......................................................... $298,115,638 ============ Shares of Beneficial Interest outstanding: Class A Shares (unlimited number of $.001 par value shares authorized)............... 20,481,238 ============ Class B Shares (unlimited number of $.001 par value shares authorized)............... 3,215,868 ============ Class C Shares (unlimited number of $.001 par value shares authorized)............... 82 ============ NET ASSET VALUE per share: Class A Shares ($257,638,998 / 20,481,238 shares).................................... $12.58 ============ Class B Shares ($40,475,608 / 3,215,868 shares)...................................... $12.59 ============ Class C Shares ($1,032 / 82 shares).................................................. $12.59 ============ See notes to financial statements. PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1996 INVESTMENT INCOME: INTEREST INCOME......................................................... $19,529,154 EXPENSES: Management fee-Note 2(a).............................................. $ 1,684,215 Shareholder servicing costs-Note 2(c)................................. 976,878 Distribution fees-Note 2(b)........................................... 184,674 Custodian fees........................................................ 31,318 Prospectus and shareholders' reports.................................. 16,049 Professional fees..................................................... 10,791 Registration fees..................................................... 4,140 Trustees' fees and expenses-Note 2(d)................................. 3,907 Miscellaneous......................................................... 5,819 _______________ TOTAL EXPENSES.................................................. 2,917,791 _____________ INVESTMENT INCOME-NET........................................... 16,611,363 REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments-Note 3................................. $ 6,261,292 Net unrealized (depreciation) on investments............................ (2,957,977) _______________ NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 3,303,315 _____________ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $19,914,678 ============= See notes to financial statements. PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED APRIL 30, ____________________________________ 1995 1996 ________________ ______________ OPERATIONS: Investment income-net................................................... $ 17,976,032 $ 16,611,363 Net realized gain (loss) on investments................................. (231,734) 6,261,292 Net unrealized (depreciation) on investments for the year............... (1,447,408) (2,957,977) ________________ ______________ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 16,296,890 19,914,678 ________________ ______________ DIVIDENDS TO SHAREHOLDERS FROM: Investment income-net: Class A shares........................................................ (16,395,897) (14,787,880) Class B shares........................................................ (1,580,135) (1,823,448) Class C shares........................................................ - (35) Net realized gain on investments: Class A shares........................................................ (737,090) (3,773,931) Class B shares........................................................ (80,832) (523,745) Class C shares........................................................ - (15) ________________ ______________ TOTAL DIVIDENDS................................................... (18,793,954) (20,909,054) ________________ ______________ BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from shares sold: Class A shares........................................................ 14,075,586 9,363,475 Class B shares........................................................ 7,880,402 9,283,699 Class C shares........................................................ - 1,000 Dividends reinvested: Class A shares........................................................ 11,395,733 12,469,387 Class B shares........................................................ 1,146,894 1,692,992 Class C shares........................................................ - 48 Cost of shares redeemed: Class A shares........................................................ (43,645,693) (36,740,008) Class B shares........................................................ (3,696,758) (2,982,178) ________________ ______________ (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.... (12,843,836) (6,911,585) ________________ ______________ TOTAL (DECREASE) IN NET ASSETS.................................. (15,340,900) (7,905,961) NET ASSETS: Beginning of year....................................................... 321,362,499 306,021,599 ________________ ______________ End of year............................................................. $306,021,599 $298,115,638 ================ ==============
PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) SHARES ____________________________________________________________________________________________ CLASS A CLASS B CLASS C ____________________________ ________________________ __________________________ YEAR ENDED YEAR ENDED APRIL 30, YEAR ENDED APRIL 30, APRIL 30, ____________________________ ________________________ 1995 1996 1995 1996 1996* ____________ ____________ ___________ _________ _______________ CAPITAL SHARE TRANSACTIONS: Shares sold........... 1,122,269 724,402 625,670 718,846 79 Shares issued for dividends reinvested 911,859 964,492 91,754 130,834 3 Shares redeemed....... (3,506,799) (2,853,615) (296,186) (230,753) - ____________ ____________ ___________ _________ _______________ NET INCREASE (DECREASE) IN SHARES OUTSTANDING..... (1,472,671) (1,164,721) 421,238 618,927 82 ============ ============ =========== ========= =============== * From August 15, 1995 (commencement of initial offering) to April 30, 1996. See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OHIO 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 year indicated. This information has been derived from the Series' financial statements. CLASS A SHARES ___________________________________________________________________ YEAR ENDED APRIL 30, ___________________________________________________________________ PER SHARE DATA: 1992 1993 1994 1995 1996 __________ __________ __________ __________ __________ Net asset value, beginning of year........... $12.00 $12.35 $13.09 $12.70 $12.62 __________ __________ __________ __________ __________ INVESTMENT OPERATIONS: Investment income-net........................ .80 .77 .74 .73 .71 Net realized and unrealized gain (loss) on investments............................. .36 .81 (.36) (.05) .14 __________ __________ __________ __________ __________ TOTAL FROM INVESTMENT OPERATIONS........... 1.16 1.58 .38 .68 .85 __________ __________ __________ __________ __________ DISTRIBUTIONS: Dividends from investment income-net......... (.80) (.77) (.74) (.73) (.71) Dividends from net realized gain on investments (.01) (.07) (.03) (.03) (.18) __________ __________ __________ __________ __________ TOTAL DISTRIBUTIONS........................ (.81) (.84) (.77) (.76) (.89) __________ __________ __________ __________ __________ Net asset value, end of year................. $12.35 $13.09 $12.70 $12.62 $12.58 ========== ========== ========== ========== ========== TOTAL INVESTMENT RETURN*......................... 9.97% 13.24% 2.78% 5.63% 6.77% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets...... .52% .70% .81% .92% .89% Ratio of net investment income to average net assets 6.53% 6.03% 5.57% 5.84% 5.49% Decrease reflected in above expense ratios due to undertakings by the Manager................ .41% .23% .12% .01% - Portfolio Turnover Rate...................... 13.68% 6.08% 7.73% 39.53% 43.90% Net Assets, end of year (000's Omitted)...... $243,074 $295,564 $293,706 $273,225 $257,639 * Exclusive of sales load. See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OHIO 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 year indicated. This information has been derived from the Series' financial statements. CLASS B SHARES CLASS C SHARES _____________________________________ ________________________________ YEAR ENDED APRIL 30, YEAR ENDED APRIL 30, _____________________________________ ________________________________ PER SHARE DATA: 1993(1) 1994 1995 1996 1996(2) ________ ________ ________ _______ ___________________ Net asset value, beginning of year.... $12.69 $13.09 $12.71 $12.63 $12.68 ________ ________ ________ _______ ___________________ INVESTMENT OPERATIONS: Investment income-net................. .20 .66 .66 .64 .43 Net realized and unrealized gain (loss) on investments...................... .40 (.35) (.05) .14 .09 ________ ________ ________ _______ ___________________ TOTAL FROM INVESTMENT OPERATIONS.... .60 .31 .61 .78 .52 ________ ________ ________ _______ ___________________ DISTRIBUTIONS: Dividends from investment income-net.. (.20) (.66) (.66) (.64) (.43) Dividends from net realized gain on investments...................... - (.03) (.03) (.18) (.18) ________ ________ ________ _______ ___________________ TOTAL DISTRIBUTIONS................. (.20) (.69) (.69) (.82) (.61) ________ ________ ________ _______ ___________________ Net asset value, end of year.......... $13.09 $12.71 $12.63 $12.59 $12.59 ======== ======== ======== ======= =================== TOTAL INVESTMENT RETURN(3)................ 16.36%(4) 2.24% 5.06% 6.19% 5.66%(4) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets 1.17%(4) 1.38% 1.44% 1.42% 1.63%(4) Ratio of net investment income to average net assets.................. 4.62%(4) 4.89% 5.29% 4.94% 4.66%(4) Decrease reflected in above expense ratios due to undertakings by the Manager...... .13%(4) .10% .01% - - Portfolio Turnover Rate............... 6.08% 7.73% 39.53% 43.90% 43.90% Net Assets, end of year (000's Omitted) $8,482 $27,657 $32,797 $40,476 $1 (1) From January 15, 1993 (commencement of initial offering) to April 30, 1993. (2) From August 15, 1995 (commencement of initial offering) to April 30, 1996. (3) Exclusive of sales load. (4) Annualized. See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, OHIO 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 twelve series including the Ohio Series (the "Series"). 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 ("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") acts as the distributor of the Funds' shares. The Series offers 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 imposed at the time of redemption on redemptions made within five years of purchase and Class C shares are subject to a contingent deferred sales charge imposed at the time of redemption on redemptions made within one year of purchase. Other differences between the three Classes include the services offered to and the expenses borne by each Class and certain voting rights. 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. (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 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, OHIO SERIES NOTES TO FINANCIAL STATEMENTS (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 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. 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 value of the Series' average daily 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. There was no expense reimbursement for the year ended April 30, 1996. Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, retained $554 during the year ended April 30, 1996 from commissions earned on sales of the Series' shares. (B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, the Series pays the Distributor for distributing the Series' Class B and Class C shares at an annual rate of .50 of 1% of the value of the average daily net assets of Class B shares and .75 of 1% of the value of the average daily net assets of Class C shares. During the year ended April 30, 1996, $184,668 was charged to the Series for the Class B shares and $6 was charged to the Series for Class C shares. (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, Class B and Class C shares for provision of certain services. 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 (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. For the year ended April 30, 1996, $673,216, $92,334 and $2 were charged to Class A, Class B and Class C shares, respectively, by the Distributor pursuant to the Shareholder Services Plan. Effective December 1, 1995, the Series 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 Series. Such compensation amounted to $56,600 for the period from December 1, 1995 through April 30, 1996. PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES NOTES TO FINANCIAL STATEMENTS (CONTINUED) (D) Each trustee who is not an "affiliated person" as defined in the Act 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, excluding short-term securities during the year ended April 30, 1996 amounted to $131,059,631 and $140,879,528, respectively. At April 30, 1996, accumulated net unrealized appreciation on investments was $9,439,437, consisting of $11,812,801 gross unrealized appreciation and $2,373,364 gross unrealized depreciation. At April 30, 1996, 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, OHIO SERIES REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS SHAREHOLDERS AND BOARD OF TRUSTEES PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Premier State Municipal Bond Fund Ohio Series, (one of the Series constituting the Premier State Municipal Bond Fund) as of April 30, 1996, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 1996 by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Premier State Municipal Bond Fund, Ohio Series at April 30, 1996, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with generally accepted accounting principles. (Ernst & Young LLP-SIGNATURE) New York, New York June 5, 1996 IMPORTANT TAX INFORMATION (UNAUDITED) In accordance with Federal tax law, the Series hereby makes the following designations regarding its fiscal year ended April 30, 1996: - all the dividends paid from investment income-net are "exempt interest dividends" (not subject to regular Federal, and for individuals who are Ohio residents, Ohio personal income taxes), and - the Series hereby designates $.1816 per share as a long-term capital gain distribution of the $.1823 per share paid on December 7, 1995. 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 1996 calendar year on Form 1099-DIV which will be mailed by January 31, 1997. PREMIER STATE MUNICIPAL BOND FUND, OHIO 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. One American Express Plaza Providence, RI 02903 Further information is contained in the Prospectus, which must precede or accompany this report. Printed in U.S.A. 057/619AR964 (Dreyfus Logo) Annual Report Premier State Municipal Bond Fund Ohio Series April 30, 1996 EX-99.A 2 GRAPH IN PRESIDENT'S LTR OF ANNUAL REPORT COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX EXHIBIT A: ___________________________________________________ | | | | | | | PREMIER STATE | | PERIOD | LEHMAN BROTHERS |MUNICIPAL BOND FUND,| | | MUNICIPAL | OHIO SERIES | | | BOND INDEX * | (CLASS A SHARES) | |-----------|-----------------|--------------------| | 5/28/87 | 10,000 | 9,552 | | 4/30/88 | 10,929 | 7,912 | | 4/30/89 | 11,905 | 8,918 | | 4/30/90 | 12,762 | 9,538 | | 4/30/91 | 14,229 | 10,668 | | 4/30/92 | 15,581 | 11,731 | | 4/30/93 | 17,553 | 13,284 | | 4/30/94 | 17,932 | 13,653 | | 4/30/95 | 19,124 | 14,421 | | 4/30/96 | 20,644 | 15,396 | |--------------------------------------------------| *Source: Lehman Brothers -----END PRIVACY-ENHANCED MESSAGE-----