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<SEC-DOCUMENT>0000806176-98-000024.txt : 19980703
<SEC-HEADER>0000806176-98-000024.hdr.sgml : 19980703
ACCESSION NUMBER: 0000806176-98-000024
CONFORMED SUBMISSION TYPE: N-30D
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 19980430
FILED AS OF DATE: 19980702
SROS: NONE
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: DREYFUS PREMIER STATE MUNICIPAL BOND FUND
CENTRAL INDEX KEY: 0000806176
STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000]
STATE OF INCORPORATION: MD
FISCAL YEAR END: 0430
FILING VALUES:
FORM TYPE: N-30D
SEC ACT:
SEC FILE NUMBER: 811-04906
FILM NUMBER: 98659682
BUSINESS ADDRESS:
STREET 1: 144 GENN CURTISS BLVD
CITY: NUIONDALE
STATE: NY
ZIP: 11556
BUSINESS PHONE: 2129226805
MAIL ADDRESS:
STREET 1: 144 GENN CURTISS BLVD
CITY: NUIONDALE
STATE: NY
ZIP: 11556
FORMER COMPANY:
FORMER CONFORMED NAME: PREMIER STATE MUNICIPAL BOND FUND
DATE OF NAME CHANGE: 19920703
FORMER COMPANY:
FORMER CONFORMED NAME: PREMIER SERIES TAX EXEMPT BOND FUND
DATE OF NAME CHANGE: 19870224
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<DESCRIPTION>ANNUAL REPORT
<TEXT>
<PAGE>
ANNUAL REPORT
---------------------
PREMIER STATE
MUNICIPAL BOND FUND
GEORGIA SERIES
---------------------
APRIL 30, 1998
(DREYFUS LION LOGO)
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- ------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Premier State
Municipal Bond Fund - Georgia Series for the 12-month period ended April 30,
1998 as shown in the following table:
TOTAL RETURN* DISTRIBUTION RATE**
------------- -------------------
Class A shares.................. 7.76% 4.25%
Class B shares.................. 7.24% 3.96%
Class C shares.................. 6.61% 3.44%
ECONOMIC REVIEW
The United States is now in its eighth year of economic expansion.
Inflation continues to rise at the slowest pace since 1964, and the
unemployment rate has fallen to a level not seen in 25 years. Not
surprisingly, consumer confidence has soared. Along with continued evidence of
a robust economy have come heightened expectations that the Federal Reserve
Board (the "Fed") might raise interest rates in a preemptive move to avoid a
reigniting of inflation. The last increase in short-term rates came in March
1997 when the Federal Open Market Committee (the policy-making arm of The Fed)
hiked the target rates for Federal Funds by one quarter of a percent to 5.5%.
(The Federal Funds rate is the rate of interest that banks charge one another
for overnight loans.)
Inflation has remained benign on all fronts, even in the tight labor
market, an area closely watched by the Fed for signs of incipient inflation.
The Labor Department's Employment Cost Index (ECI), a measure of wage, salary
and benefit costs, suggests that wage inflation so far is not a problem. In
fact, the first quarter increase in the ECI (0.7%) was its smallest quarterly
rise in two years. Another inflation gauge, the broad-based Gross Domestic
Product Price Deflator, rose at an annual rate of only 0.9% in the first
quarter, its lowest rate since 1964. Inflation as measured by the Consumer
Price Index (a measure of a fixed basket of goods bought by a typical
consumer including food, transportation, shelter, utilities, clothing,
medical care, entertainment and other items), has been similarly tame. Prices
at the consumer level have risen at an annual rate of about 1.5% over the
reporting period. The lack of inflation has been even more dramatic at the
production level of the economy where prices have fallen; in the 12 months
ended April 30, the Producer Price Index declined 1.8%. Such a generally
tepid price environment has been partly fostered by the economic problems in
Asia which have suppressed worldwide demand for commodities, particularly oil.
Reflecting a level of confidence not seen in three decades, consumers
increased their spending over the reporting period, the first-quarter rate
rising at the fastest pace in six years. Not surprisingly, the growth rate in
new home construction over the reporting period was the strongest in four
years. Plentiful and well-paying jobs (total wage and salary income is 7%
higher than a year ago), low interest rates, the relative absence of
inflation and investment market gains have resulted in a financially healthy
consumer with a corresponding propensity to spend. Strong domestic demand for
lower-priced imports has contributed further to the quiescent inflation
environment, while offsetting the drag on the economy resulting from the
Asian financial crisis. It is still widely expected that the Asian economic
slowdown will have a further dampening effect on the U.S. economy. Although
the surge in domestic spending has masked the full impact of the fall in
Asian demand, our trade deficit has reached a ten-year high, a dramatic sign
of deterioration. Expectation of an economic slowdown may be a reason why the
Fed has been reluctant to raise short-term interest rates.
The production side of the economy has remained robust. Factory
utilization has been high, production rates strong, and while exports to Asia
have fallen sharply, they are growing in the rest of the world. Such
resilience has been characteristic of one of the longest, healthiest economic
advances in our history. Yet we remain mindful that the concept of an
economic cycle is not dead, nor is inflation, and we are alert for
indications of a resurgence in price pressures.
<PAGE>
MARKET ENVIRONMENT
Market activity began relatively slowly through the first half of the
Fund's fiscal year, but a price rally materialized during the second half of
the year. Specifically, long-term interest rates as measured by the 30-year
U.S. Treasury bond stabilized around the 7% level in mid-October, when the
market established a new trading range, and declined to a 6.45% yield at the
end of the calendar year 1997. After a correction in January that lowered
bond prices and raised yields, the market rebounded to test the 6.50% level.
As we moved forward, prices slid once more, moving the yield back into the 7%
range.
During its periods of stabilization, the municipal market saw the retail
(or individual) investor become more active, strengthening the demand for
municipal bonds. During the second quarter of the fiscal year, $10 billion
in new supply was digested by the tax-exempt market in just two weeks, which
caused municipal bond prices to decline, in effect becoming better relative
values when compared to taxable bonds. The increase in municipal yields
reversed the trend of outperformance by the municipal market that
characterized most of 1996. On March 31, near the close of the 1997 fiscal
year, taxable bonds lost ground while municipal bonds held more of their
value.
In recent years, the total amount of bonds issued within the State of
Georgia has been constant. The proportion of negotiated issues has led the
way, while the percentage of competitive issues has dwindled. Thus the flow
of new issues coming to market has allowed for greater liquidity of many
existing holdings and has encouraged the Fund to remain largely invested.
PORTFOLIO OVERVIEW
The Fund assumed a more aggressive stance over the past fiscal year.
While the Fund maintained a core of income producing holdings, the sale and
purchase of securities in the Fund became more frequent because we traded
security positions as the market ebbed and flowed. The municipal market has
been affected by uncertainty, and trying to forecast market changes would be
difficult at best. As a result, we focused our efforts on generating a
rewarding total return (the combination of interest payments and price
changes) for our shareholders. To accomplish that goal, we purchased a
number of new issue discounted securities which possessed a high degree of
liquidity and good structural characteristics. Our investment strategy
included selling shorter maturities and prerefunded holdings, and reinvesting
the proceeds into securities that appeared to have some price appreciation
potential. The Fund has also made a concerted effort to eliminate positions
with weakening credit characteristics and reinvest in more creditworthy,
liquid securities.
We will continue to manage the portfolio utilizing this strategy as we
begin the Fund's new year. The market is not currently offering any concrete
signs alluding to its direction. In fact, it appears that the municipal
market will continue on its somewhat uncertain path at least through the
second quarter of 1998. We are proceeding cautiously in the current market
environment with the intention of capitalizing on opportunities as they
arise. Further, we expect that Georgia securities will continue to be well
sought-after by national funds, as well as other Georgia bond funds.
<PAGE>
Our primary task, which will guide our portfolio management decisions, is
to earn a high level of current income exempt from Federal tax to the extent
it is consistent with the preservation of capital, while at the same time
maintaining high credit quality. Included in this report is a series of
detailed statements outlining the portfolio's holdings and financial
condition. We hope you find them informative. Please know that we greatly
appreciate your continued confidence in the portfolio and The Dreyfus
Corporation.
Sincerely,
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 18, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid
and does not take into consideration the maximum initial sales charge in
the case of Class A shares, or the contingent deferred sales charge
imposed on redemptions in the case of Class B shares and Class C shares.
Income may be subject to state and local income taxes for non-Georgia
residents.
** Distribution rate per share is based upon dividends per share paid from
net investment income during the period, divided by the maximum offering
price per share at the end of the period in the case of Class A shares, or
the net asset value per share in the case of Class B shares and Class C
shares. Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES APRIL 30, 1998
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES CLASS A SHARES AND
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
$14,717
Lehman Brothers
Municipal Bond Index*
CHART
$13,951
Dreyfus Premier State Municipal Bond
Fund, Georgia Series
(Class A Shares)
*Source: Lehman Brothers
<TABLE>
<CAPTION>
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 4/30/98 Sales Charge Sales Charge (4.5%) Period Ended 4/30/98 Redemption Redemption*
- -------------------- ------------------ --------------- -------------------- ----------- ---------------------
<S> <C> <C> <C> <C> <C>
1 Year 7.76% 2.94% 1 Year 7.24% 3.24%
5 Year 5.75 4.78 5 Year 5.23 4.90
From Inception (9/3/92) 6.93 6.06 From Inception (1/15/93) 6.09 5.94
</TABLE>
<TABLE>
<CAPTION>
CLASS C SHARES
- ------------------------------------------------------------
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 4/30/98 No Redemption Redemption**
- ------------------------ ------------- ---------------------
<S> <C> <C>
1 Year 6.61% 5.61%
From Inception (8/15/95) 6.06 6.06
<FN>
- ------------------
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of
Dreyfus Premier State Municipal Bond Fund, Georgia Series on 9/3/92
(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 8/31/92 is used as the beginning value on 9/3/92. 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 Georgia 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 and is not limited to investments principally in Georgia municipal
obligations. 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.
* The maximum contingent deferred sales charge for Class B shares is 4%
and is reduced to 0% after six years.
** The maximum contingent deferred sales charge for Class C shares is 1%
for shares redeemed within one year of the date of purchase.
</FN>
</TABLE>
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS APRIL 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--100% AMOUNT VALUE
- ---------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
GEORGIA-96.1%
Atlanta:
Airport Facilities Revenue 5.25%, 1/1/2010 (Insured; AMBAC)............. $ 1,000,000 $ 1,033,780
GO 6.10%, 12/1/2019..................................................... 1,000,000 1,083,700
Barrow County School District 5.60%, 2/1/2015 (Insured; MBIA)............... 1,000,000 1,041,080
Clayton County and Clayton County Water Authority, Water and Sewer Revenue,
Refunding 5.60%, 5/1/2013 (Insured; AMBAC)................................ 1,200,000 1,257,288
Colquitt County Hospital Authority, Refunding 5.50%, 3/1/2016 (Insured; FSA) 1,000,000 1,018,170
Columbia County, Water and Sewer Revenue, Refunding
5.40%, 6/1/2011 (Insured; AMBAC)........................................ 750,000 780,840
Columbus Hospital Authority, Revenue (St. Francis Hospital)
6.20%, 1/1/2010 (Insured; MBIA)......................................... 200,000 211,636
Fayette County School District 6.125%, 3/1/2015............................. 500,000 539,855
Fulton County, Water and Sewer Revenue, Refunding 6.375%, 1/1/2014
(Insured; FGIC)........................................................... 290,000 332,940
Fulton County Building Authority, Revenue, Refunding
(County Government and Health Facilities Project) 6.125%, 1/1/2011 ..... 300,000 323,988
Fulton County Development Authority, Special Facilities Revenue, Refunding
(Delta Air Lines, Inc. Project) 6.95%, 11/1/2012........................ 245,000 268,285
Gainesville, Water and Sewer Revenue, Refunding 6%, 11/15/2012 (Insured; FGIC) 300,000 333,033
Georgia, GO:
6.65%, 3/1/2009......................................................... 1,000,000 1,171,360
5.65%, 3/1/2012......................................................... 1,000,000 1,075,690
Georgia Housing and Finance Authority, SFMR:
7%, 12/1/2015 (Insured; FHA)............................................ 1,500,000 1,600,440
6.50%, 12/1/2017 (Insured; FHA)......................................... 1,000,000 1,062,500
Georgia Municipal Electric Authority, Refunding (Project One)
5%, 1/1/2026 (Insured; AMBAC)........................................... 1,000,000 953,850
Georgia Municipal Gas Authority, Gas Revenue (Warner Robins Project)
5.80%, 1/1/2015 (Insured; MBIA)......................................... 1,000,000 1,059,880
Glynn-Brunswick Memorial Hospital Authority (Southeast Georgia Health)
5.25%, 8/1/2013 (Insured; MBIA)......................................... 2,000,000 2,021,960
Hancock County, GO 6.70%, 4/1/2015.......................................... 1,000,000 1,104,860
Marietta Development Authority, Revenue, Refunding (First Mortgage-Life
College)
5.75%, 9/1/2014 (Insured; FSA).......................................... 850,000 893,792
Meriwether County School District 5.50%, 2/1/2016 (Insured; FSA)............ 1,000,000 1,026,870
Metropolitan Atlanta Rapid Transportation Authority, Sales Tax Revenue,
Refunding
6.25%, 7/1/2020 (Insured; AMBAC)........................................ 300,000 342,345
Private Colleges and Universities Authority, Revenue, Refunding
(Spellman College Project) 6.20%, 6/1/2014 (Insured; FGIC).............. 1,000,000 1,089,180
Ware County, Water and Sewer Improvement Revenue, Refunding
5%, 12/1/2023 (Insured; MBIA)........................................... 1,000,000 955,500
</TABLE>
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
- ---------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
U.S. RELATED-3.9%
Puerto Rico Electric Power Authority, Power Revenue 4.75%, 7/1/2024......... $ 1,000,000 $ 913,320
-----------
TOTAL INVESTMENTS (cost $22,146,107)........................................ $23,496,142
===========
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation GO General Obligation
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FHA Federal Housing Administration Insurance Corporation
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FITCH (A) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- ------- ----------------- -------------------
AAA Aaa AAA 70.7%
AA Aa AA 24.3
BBB Baa BBB 5.0
------
100.0%
======
<FN>
NOTES TO STATEMENT OF INVESTMENTS:
- ------------------------------------------------------------------------------------------------------------------------
(a) Fitch currently provides creditworthiness information for a limited
number of investments.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1998
<TABLE>
<CAPTION>
Cost Value
----------- ------------
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments.... $22,146,107 $23,496,142
Cash...................................................... 5,777
Interest receivable....................................... 380,228
Prepaid expenses.......................................... 1,559
-----------
23,883,706
-----------
LIABILITIES: Due to The Dreyfus Corporation and affiliates............. 11,787
Due to Distributor........................................ 12,207
Payable for shares of Beneficial Interest redeemed........ 13,783
Accrued expenses.......................................... 13,822
-----------
51,599
-----------
NET ASSETS........................................................................... $23,832,107
===========
REPRESENTED BY: Paid-in capital........................................... $23,094,247
Accumulated net realized gain (loss) on investments....... (612,175)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4................................... 1,350,035
-----------
NET ASSETS........................................................................... $23,832,107
===========
</TABLE>
NET ASSET VALUE PER SHARE
-------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
----------- ----------- -----------
<S> <C> <C> <C>
Net Assets................................................ $ 6,231,655 $17,558,332 $ 42,120
Shares Outstanding........................................ 457,306 1,287,923 3,093
NET ASSET VALUE PER SHARE................................. $13.63 $13.63 $13.62
====== ====== ======
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1998
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $1,338,262
EXPENSES: Management fee-Note 3(a)................... $ 136,699
Distribution fees-Note 3(b)................ 89,779
Shareholding servicing costs-Note 3(c).... 69,076
Professional fees.......................... 8,700
Prospectus and shareholders' reports....... 5,452
Registration fees.......................... 3,206
Custodian fees............................. 2,675
Trustees' fees and expenses-Note 3(d)...... 351
Loan commitment fees-Note 2................ 301
Miscellaneous.............................. 7,866
---------
TOTAL EXPENSES......................... 324,105
----------
INVESTMENT INCOME-NET....................................................... 1,014,157
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 52,283
Net unrealized appreciation (depreciation)
on investments......................... 723,425
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 775,708
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,789,865
==========
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 1,014,157 $ 1,165,649
Net realized gain (loss) on investments........................... 52,283 69,477
Net unrealized appreciation (depreciation) on investments......... 723,425 293,070
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS.................................................. 1,789,865 1,528,196
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares.................................................. (307,129) (356,396)
Class B shares.................................................. (705,439) (805,477)
Class C shares.................................................. (1,589) (3,776)
----------- -----------
TOTAL DIVIDENDS............................................. (1,014,157) (1,165,649)
----------- -----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.................................................. 1,034,483 212,279
Class B shares.................................................. 1,001,862 709,076
Class C shares.................................................. 14,318 12,238
Dividends reinvested:
Class A shares.................................................. 210,772 260,106
Class B shares.................................................. 349,972 396,438
Class C shares.................................................. 1,014 3,525
Cost of shares redeemed:
Class A shares.................................................. (1,833,199) (2,334,070)
Class B shares.................................................. (2,556,894) (3,248,467)
Class C shares.................................................. (79,498) --
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS................................................ (1,857,170) (3,988,875)
----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS................... (1,081,462) (3,626,328)
NET ASSETS:
Beginning of Period............................................... 24,913,569 28,539,897
----------- -----------
End of Period..................................................... $23,832,107 $24,913,569
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES
---------------------------------
YEAR ENDED YEAR ENDED
CAPITAL SHARE TRANSACTIONS: APRIL 30, 1998 APRIL 30, 1997
-------------- --------------
<S> <C> <C>
CLASS A
-------
Shares sold............................................................ 76,833 16,032
Shares issued for dividends reinvested................................. 15,405 19,634
Shares redeemed........................................................ (134,087) (175,973)
--------- ---------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING........... (41,849) (140,307)
========= =========
CLASS B
-------
Shares sold............................................................ 72,878 53,684
Shares issued for dividends reinvested................................. 25,567 29,914
Shares redeemed........................................................ (187,669) (246,421)
--------- ---------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING........... (89,224) (162,823)
========= =========
CLASS C
-------
Shares sold............................................................ 1,041 927
Shares issued for dividends reinvested................................. 74 266
Shares redeemed........................................................ (5,938) --
--------- ---------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING........... (4,823) 1,193
========= =========
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
CLASS A SHARES
-------------------------------------------------------
YEAR ENDED APRIL 30,
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA: 1998 1997 1996 1995 1994
------ ------ ------ ------ ------
Net asset value, beginning of period.................. $13.22 $13.05 $12.80 $12.69 $13.27
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net................................. .61 .62 .66 .73 .73
Net realized and unrealized gain (loss) on investments .41 .17 .25 .11 (.58)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS...................... 1.02 .79 .91 .84 .15
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net................. (.61) (.62) (.66) (.73) (.73)
------ ------ ------ ------ ------
Net asset value, end of period....................... $13.63 $13.22 $13.05 $12.80 $12.69
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN*................................. 7.76% 6.16% 7.14% 6.87% .97%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .95% .98% .74% .25% .07%
Ratio of net investment income to average net assets. 4.44% 4.71% 5.00% 5.80% 5.41%
Decrease reflected in above expense ratios due to
undertakings by the Manager........................ -- -- .21% .78% 1.02%
Portfolio Turnover Rate.............................. 36.64% 50.96% 33.09% 34.04% 6.76%
Net Assets, end of period (000's Omitted)............ $6,232 $6,598 $8,346 $8,985 $10,058
<FN>
- --------------------------
* Exclusive of sales load.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
CLASS B SHARES
-------------------------------------------------------
YEAR ENDED APRIL 30,
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA: 1998 1997 1996 1995 1994
------ ------ ------ ------ ------
Net asset value, beginning of period.................. $13.22 $13.06 $12.80 $12.69 $13.27
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net................................. .54 .56 .59 .66 .67
Net realized and unrealized gain (loss) on investments .41 .16 .26 .11 (.58)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS...................... .95 .72 .85 .77 .09
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net.................. (.54) (.56) (.59) (.66) (.67)
------ ------ ------ ------ ------
Net asset value, end of period........................ $13.63 $13.22 $13.06 $12.80 $12.69
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN*.................................. 7.24% 5.55% 6.69% 6.33% .46%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... 1.44% 1.47% 1.24% .75% .58%
Ratio of net investment income to average net assets.. 3.94% 4.20% 4.46% 5.27% 4.85%
Decrease reflected in above expense ratios due to
undertakings by the Manager......................... -- -- .20% .80% 1.02%
Portfolio Turnover Rate............................... 36.64% 50.96% 33.09% 34.04% 6.76%
Net Assets, end of period (000's Omitted)............. $17,558 $18,211 $20,106 $19,429 $16,243
<FN>
- --------------------------
* Exclusive of sales load.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
CLASS C SHARES
---------------------------------
YEAR ENDED APRIL 30,
---------------------------------
<S> <C> <C> <C>
PER SHARE DATA: 1998 1997 1996(1)
------ ------ --------
Net asset value, beginning of period.................. $13.22 $13.05 $12.85
------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net................................. .47 .51 .38
Net realized and unrealized gain (loss) on investments .40 .17 .20
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS...................... .87 .68 .58
------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net.................. (.47) (.51) (.38)
------ ------ ------
Net asset value, end of period........................ $13.62 $13.22 $13.05
====== ====== ======
TOTAL INVESTMENT RETURN(2)................................ 6.61% 5.30% 6.28%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... 1.91% 1.80% 1.98%(3)
Ratio of net investment income to average net assets.. 3.48% 3.87% 3.73%(3)
Portfolio Turnover Rate............................... 36.64% 50.96% 33.09%
Net Assets, end of period (000's Omitted)............. $42 $105 $88
<FN>
- ------------------------
(1) From August 15, 1995 (commencement of initial offering) to April 30,
1996.
(2) Exclusive of sales load.
(3) Annualized.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier State Municipal Bond Fund (the "Trust") 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 thirteen series including the Georgia Series (the "Fund").
The Fund's investment objective is to maximize current income exempt from
Federal and, where applicable, from State income taxes, without undue risk.
The Dreyfus Corporation (the "Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue an unlimited number of
$.001 par value shares in the following classes of shares: Class A, Class B
and Class C shares. Class A shares are subject to a sales charge imposed at
the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six
years of purchase (five years for shareholders beneficially owning Class B
shares on November 30, 1996) and Class C shares are subject to a CDSC imposed
on Class C shares redeemed within one year of purchase. Other differences
between the classes include the services offered to and the expenses borne by
each class and certain voting rights.
The Trust accounts separately for the assets, liabilities and operations
of each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions.
Options and financial futures on municipal and U.S. treasury securities are
valued at the last sales price on the securities exchange on which such
securities are primarily traded or at the last sales price on the national
securities market on each business day. Investments not listed on an exchange
or the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the 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 approximately $613,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1998. If not
applied, $329,000 of the carryover expires in fiscal 2003, $267,000 expires
in fiscal 2004 and $17,000 expires in fiscal 2005.
NOTE 2-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
April 30, 1998, the Fund did not borrow under the Facility.
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement with the Manager, the management
fee is computed at the annual rate of .55 of 1% of the value of the Fund's
average daily net assets and is payable monthly.
Dreyfus Service Corporation a wholly-owned subsidiary of the Manager,
retained $216 during the period ended April 30, 1998, from commissions earned
on sales of the Fund's shares.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's 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 period ended April 30,1998,
Class B and Class C shares were charged $89,437 and $342, respectively,
pursuant to the Distribution Plan.
(C) Under the Shareholder Services Plan, the Fund 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 the provision of certain services.
The services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the period ended April 30,
1998, Class A, Class B and Class C shares were charged $17,303, $44,719 and
$114, respectively, pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the
period ended April 30, 1998, the Fund was charged $12,296 pursuant to the
transfer agency agreement.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(D) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Trust an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1998
amounted to $10,080,485 and $8,560,651, respectively.
At April 30, 1998, accumulated net unrealized appreciation on investments
was $1,350,035, consisting of $1,401,796 gross unrealized appreciation and
$51,761 gross unrealized depreciation.
At April 30, 1998, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- ------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier State Municipal
Bond Fund, Georgia Series (one of the Funds constituting the Dreyfus Premier
State Municipal Bond Fund) as of April 30, 1998, 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 and financial highlights. Our procedures included
confirmation of securities owned as of April 30, 1998 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 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 Dreyfus Premier State Municipal Bond Fund, Georgia Series at
April 30, 1998, 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
New York, New York
June 3, 1998
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
- ------------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended April
30, 1998 as "exempt-interest dividends" (not subject to regular Federal and,
for individuals who are Georgia residents, Georgia personal income taxes).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1998 calendar year
on Form 1099-DIV which will be mailed by January 31, 1999.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL
BOND FUND, GEORGIA SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 068/627AR984
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<DESCRIPTION>TABLE FOR GRAPH IN THE PRESIDENT'S LETTER
<TEXT>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX
EXHIBIT A:
DREYFUS
PREMIER STATE
PERIOD LEHMAN BROTHERS MUNICIPAL BOND FUND,
MUNICIPAL GEORGIA SERIES
BOND INDEX * (CLASS A SHARES)
9/3/92 10,000 9,549
4/30/93 10,736 10,548
4/30/94 10,968 10,650
4/30/95 11,698 11,382
4/30/96 12,627 12,195
4/30/97 13,465 12,946
4/30/98 14,717 13,951
*Source: Lehman Brothers
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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