-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, J6Yh4t2kB3HtqfK8rovBPJFBwLHLiWBSvGcAWOgzzLzW2NA90MtMe1MC5CbxPAgX TwweMloQGQpbLhbYnvr7vg== 0000806176-95-000022.txt : 199507030000806176-95-000022.hdr.sgml : 19950703 ACCESSION NUMBER: 0000806176-95-000022 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19950630 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PREMIER STATE MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0000806176 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04906 FILM NUMBER: 95551638 BUSINESS ADDRESS: STREET 1: 144 GENN CURTISS BLVD CITY: NUIONDALE STATE: NY ZIP: 11556 BUSINESS PHONE: 2129226805 FORMER COMPANY: FORMER CONFORMED NAME: PREMIER SERIES TAX EXEMPT BOND FUND DATE OF NAME CHANGE: 19870224 N-30D 1 ANNUAL REPORT LETTER TO SHAREHOLDERS Dear Shareholder: In just a few months' time, the fixed income markets seem to have been able to erase the poor performance of the previous year. The markets were roiled during 1994 by fears of a strengthening economy and inflation. The Federal Reserve Board has responded by raising short-term interest rates seven times since February of 1994. While only a few weeks ago the consensus about the economy called for further rate hikes, many pundits now predict the Fed will lower rates in response to increasing evidence of economic slowing. Certainly, the financial markets are making it difficult for the Fed to maintain its current stance in view of the fact that both one- and two-year Treasury obligations are yielding less than the overnight Federal Funds rate. Yields on tax exempt securities (as measured by the Bond Buyer 25 Bond Revenue Bond Index) have fallen by over one and-a-quarter percent from their highs of late last year. Despite the volatility in the markets, municipal bond yields are little changed from a year ago. This fact is reflected by the change in your portfolio's net asset value for the 12 months ended April 30, 1995, as each share rose slightly in value. In addition, Class A shares paid income dividends of approximately $.911 per share, representing a tax-free distribution rate per share of 5.40% based on the April 30 closing maximum offering price. Class B shares paid income dividends of approximately $.826 per share, which equates to a tax-free distribution rate per share of 5.13% based on the April 30 closing net asset value. All interest income distributed was exempt from Federal and Pennsylvania State personal income taxes.* Certainly, the positive returns registered for your Series are encouraging given the state of the market at our last report to you. These results become more compelling when the tax-free status of the income dividends are adjusted and compared to taxable alternatives. Early in the fiscal year we reduced the duration, and thereby the volatility, of the portfolio. As part of this adjustment, all derivative positions were eliminated. We stated in our semi-annual report to shareholders that "we believe that our actions to build cash reserves and reduce the Series' exposure to more volatile bonds were generally successful." This conservative maneuver cushioned the Series' drop in net asset value as interest rates continued to rise until late in the calendar year. In that letter we also informed shareholders that we were beginning to view the municipal market more favorably, and that we were poised to alter our investment strategy if it became apparent that the economy was slowing and the Fed was nearing the end of its tightening moves. In view of our perception of a change in economic fundamentals, and the dearth of municipal bond issuance, especially in the State of Pennsylvania, we began lengthening the duration of your Series. We accomplished this by purchasing longer maturity and deeper discount bonds during the second half of the fiscal year. This boosted your Series' performance as interest rates peaked in November and then steadily declined through the end of the fiscal year. Given the large run-up in bond prices over recent weeks, we are again preparing to lessen the portfolio's duration exposure. The intention of the recent change in strategy is to protect the gains registered to date. We believe that the balance of this year will generally be positive for the municipal bond market. Not only has new bond issuance been curtailed, but an anticipated surge in demand by individual investors also seems to be working in the market's favor. This is a result of midyear coupon payments and investable proceeds from municipal bonds which will either be called or mature over the next several weeks. As much as $100 billion may be available from these sources. In our view, the economic picture at present suggests that inflation should not be a problem over the near term and that the economy is continuing to slow. While our outlook remains positive, we also believe it is prudent to lock in some gains. As has been our strategy for some time, we continue to place our investable funds in those securities that the marketplace considers the most liquid, even if doing so necessitates some sacrifice in current yield. For example, the percentage of insured bonds in the portfolio has been increased, while some of the higher yielding, but less liquid, credits are being avoided. As always, we will continue to manage your Series to provide tax-free income without undue risk. We appreciate your investment in the Series and look forward to serving your investment needs in the future. Very truly yours, (Signature Logo) Richard J. Moynihan Director, Municipal Portfolio Management The Dreyfus Corporation May 17, 1995 New York, N.Y. *Some income may be subject to the Federal Alternative Minimum Tax (AMT) for certain shareholders PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES APRIL 30,1995 COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX $18,392 Lehman Brothers Municipal Bond Index* In Dollars $17,679 Premier State Municipal Bond Fund, Pennsylvania Series (Class A Shares) *Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURNS CLASS A CLASS B - ------------------------------------------------------------ ----------------------------------------------------------- % Return Reflecting % Return Applicable Contingent Reflecting % Return Deferred Sales % Return Without Maximum Initial Assuming No Charge Upon Periods ended 4/30/95 Sales Charge Sales Charge (4.5%) Periods ended 4/30/95 Redemption Redemption* - ---------------------- ------------------ ------------------- --------------------- ------------ ------------------- 1 Year 6.65% 1.88% 1 Year 6.02% 3.02% 5 Years 8.87 7.87 From Inception (1/15/93) 5.44 4.62 From Inception (7/30/87) 8.27 7.63
Past performance is not predictive of future performance. Share price and investment return fluctuate and share price may be more or less than original cost upon redemption. The above graph compares a $10,000 investment made in Class A shares of Premier State Municipal Bond Fund, Pennsylvania Series on 7/30/87 (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 7/31/87 is used as the beginning value on 7/30/87. All dividends and capital gain distributions are reinvested. Performance for Class B shares will differ from the results shown above due to difference in charges and expenses charged to that class. The Series invests primarily in Pennsylvania 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 market. The Index does not take into account charges, fees and other expenses. Also, unlike the Fund which principally limits investments to Pennsylvania municipal obligations, the Index is not state-specific. Further information relating to Series performance, including expense reimbursements, if applicable, is contained in the Condensed Financial Information section of the Prospectus and elsewhere in this report. *Maximum contingent deferred sales charge for Class B shares is 3% and is reduced to 0% after five years.
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES STATEMENT OF INVESTMENTS APRIL 30,1995 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS-99.6% AMOUNT VALUE -------------- ----------- PENNSYLVANIA-86.4% Allegheny County, Airport Revenue, Refunding (Pittsburgh International Airport) 5.75%, 1/1/2008 (Insured; FSA).......................................... $ 2,005,000 $ 1,971,196 Allegheny County Hospital Development Authority, Revenue (Magee-Womens Hospital) 5.625%, 10/1/2020 (Insured; FGIC) (a).......... 6,000,000 5,553,780 Allegheny County Industrial Development Authority, Revenue: Commercial Development, Refunding (Kaufmann Medical Office Building) 6.80%, 3/1/2015 (Insured; FHA) (a). 3,500,000 3,709,265 Medical Center, Refunding (Presbyterian Medical Center of Oakmont Pennsylvania, Inc.) 6.75%, 2/1/2026 (Insured; FHA)............ 2,000,000 2,012,000 Specialized Enterprise (Baldwin Health Center) 8.35%, 2/1/2016 (Insured; FHA)................ 4,610,000 4,883,880 Allegheny County Residential Finance Authority, SFMR: 7.40%, 12/1/2022........................................................ 1,945,000 2,048,630 7.95%, 6/1/2023......................................................... 1,195,000 1,260,856 Allentown, Refunding 5.65%, 7/15/2010 (Insured: AMBAC)...................... 1,000,000 983,880 Beaver County Industrial Development Authority, PCR, Refunding (Ohio Edison Project) 7.75%, 9/1/2024................................... 3,150,000 3,252,627 (Pennsylvania Power Company Mansfield Project) 7.15%, 9/1/2021.......... 3,000,000 3,021,360 Berks County: Zero Coupon, 5/15/2013 (Insured: FGIC).................................. 3,105,000 1,029,742 Zero Coupon, 5/15/2014 (Insured; FGIC).................................. 3,345,000 1,039,693 Berks County Municipal Authority: HR (Reading Hospital Medical Center Project) 5.50%, 10/1/2008 (Insured; MBIA) 3,500,000 3,415,545 Revenue (Phoebe Berks Village, Inc. Project) 8.25%, 5/15/2022........... 2,445,000 2,529,695 Blair County Hospital Authority, Revenue (Altoona Hospital Project) 6.375%, 7/1/2013 (Insured; AMBAC)....................................... 5,000,000 5,094,950 Bradford County Industrial Development Authority, SWDR (International Paper Company Projects) 6.60%, 3/1/2019.................. 3,250,000 3,257,540 Butler County Hospital Authority, Revenue, Refunding: Health Center (Saint Francis Health Care Project) 6%, 5/1/2008.......... 1,860,000 1,839,335 Hospital (Butler Memorial Hospital) 8%, 7/1/2016........................ 2,000,000 2,109,880 Cambria County Industrial Development Authority, RRR (Cambria Cogen Project): 7.75%, 9/1/2019, Series F-1 (LOC; Fuji Bank) (b)...................... 1,750,000 1,838,043 7.75%, 9/1/2019, Series F-2 (LOC; Fuji Bank) (b)...................... 2,750,000 2,903,643 Dauphin County General Authority, HR (Hapsco - Western Pennsylvania Hospital Project) 5.50%, 7/1/2023 (Insured; MBIA)....................... 2,300,000 2,097,945 PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30,1995 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE -------------- -------------- PENNSYLVANIA (CONTINUED) Delaware County Authority: HR (Crozer - Chester Medical Center) 5.30%, 12/15/2011 (Insured; MBIA).. $ 2,750,000 $ 2,582,003 Revenue (Elwyn Inc. Project) 8.35%, 6/1/2015............................ 4,300,000 4,695,987 Doylestown Hospital Authority, HR, Refunding 5.20%, 7/1/2008 (Insured; AMBAC)........................................ 2,255,000 2,131,358 Erie Higher Educational Building Authority, College Revenue (Mercyhurst College Project) 7.85%, 9/15/2019 (Prerefunded 9/15/1999) (c) 1,000,000 1,115,370 Lancaster County Solid Waste Management Authority, Resource Recovery System Revenue 8.50%, 12/15/2010...................... 1,145,000 1,208,857 Langhorne Manor Borough Higher Educational and Health Authority, HR (Lower Bucks Hospital) 7%, 7/1/2005..................................... 2,375,000 2,369,941 Lehigh County General Purpose Authority, Revenue (Wiley House): 8.75%, 11/1/2014 (LOC; Northeastern Bank of Pennsylvania) (b)........... 3,785,000 3,763,955 9.50%, 11/1/2016........................................................ 2,000,000 2,073,520 Lehigh County Industrial Development Authority, PCR, Refunding (Pennsylvania Power and Light Company Project) 5.50%, 2/15/2027 (Insured; MBIA)........................................ 12,235,000 11,128,956 Luzerne County Industrial Development Authority, Exempt Facilities Revenue, Refunding (Pennsylvania Gas and Water Company Project) 7.125%, 12/1/2022.... 4,000,000 4,031,360 Montgomery County Higher Educational and Health Authority: HR (Abington Memorial Hospital) 5.125%, 6/1/2014 (Insured; AMBAC)....... 3,000,000 2,685,000 Revenue: First Mortgage (Montgomery Income Project) 10.50%, 9/1/2020........... 3,000,000 3,213,990 (Northwestern Corporation) 8.375%, 6/1/2009........................... 2,685,000 2,792,695 Montgomery County Industrial Development Authority, RRR 7.50%, 1/1/2012 (LOC; Banque Paribas) (b)........................... 5,000,000 5,269,950 Northampton County Industrial Development Authority, Refunding, Revenue: (Moravian Hall Square Project) 7.45%, 6/1/2014 (LOC; Meridian Bank) (b). 1,800,000 1,880,136 Pollution Control (Bethlehem Steel) 7.55%, 6/1/2017..................... 5,700,000 5,746,170 Pennsylvania Economic Development Financing Authority: Exempt Facilities Revenue (Macmillan Ltd. Partnership Project) 7.60%, 12/1/2020 3,500,000 3,697,540 RRR (Northampton Generating Project): 6.40%, 1/1/2009....................................................... 2,500,000 2,398,700 6.50%, 1/1/2013....................................................... 6,500,000 6,035,965 Wastewater Treatment Revenue (Sun Co. Inc. - R and M Project) 7.60%, 12/1/2024 4,240,000 4,482,443 Pennsylvania Higher Education Assistance Agency, Student Loan Revenue, 7.05%, 10/1/2016 (Insured; AMBAC)....................................... 2,500,000 2,624,275 PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE ------------ ------------ PENNSYLVANIA (CONTINUED) Pennsylvania Higher Educational Facilities Authority, Revenue: College and University (Temple University) 5.75%, 4/1/2031 (Insured; MBIA) $ 3,100,000 $ 2,891,494 Refunding (Drexel University) 6.375%, 5/1/2017.......................... 6,820,000 6,635,383 (Thomas Jefferson University) 6%, 7/1/2019.......................................................... 3,555,000 3,518,846 Pennsylvania Housing Finance Agency: 6.057%, 4/1/2025........................................................ 6,000,000 5,688,060 Single Family Mortgage: 7.875%, 10/1/2020..................................................... 1,435,000 1,519,407 8.15%, 10/1/2021...................................................... 1,475,000 1,573,412 8.15%, 4/1/2024....................................................... 585,000 612,524 6.90%, 4/1/2025....................................................... 6,250,000 6,413,438 Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue: (City of Philadelphia Funding Program) 5.625%, 6/15/2023 (Insured; MBIA) 3,000,000 2,809,230 Refunding 5%, 6/15/2013 (Insured; MBIA)............................... 2,000,000 1,784,700 Refunding 5%, 6/15/2022 (Insured; MBIA)............................... 10,875,000 9,297,255 Philadelphia, Water and Wastewater Revenue: Refunding 5.625%, 6/15/2008 (Insured; FSA).............................. 5,000,000 4,956,150 6.25%, 8/1/2010 (Insured; MBIA) (d)..................................... 2,730,000 2,855,798 5.60%, 8/1/2018 (Insured; MBIA) (d)..................................... 4,645,000 4,363,374 Refunding 5.25%, 6/15/2023 (Insured; MBIA).............................. 11,405,000 10,108,023 Philadelphia Hospital and Higher Education Facilities Authority: HR: (Albert Einstein Medical Center) 7%, 10/1/2021........................ 1,500,000 1,508,400 (Graduate Health System Obligation) 7.25%, 7/1/2018................... 5,250,000 5,284,073 Refunding (Children's Hospital Philadelphia): 5.375%, 2/15/2014................................................. 3,060,000 2,765,995 5%, 2/15/2021..................................................... 9,805,000 8,254,928 Revenue: (Northwestern Corporation) 8.375%, 6/1/2009........................... 1,885,000 1,994,349 Refunding (Philadelphia MR Project) 5.875%, 8/1/2007.................. 4,620,000 4,370,566 Philadelphia Industrial Development Authority, IDR, Refunding (Ashland Oil Inc. Project) 5.70%, 6/1/2005.............................. 2,500,000 2,480,875 Philadelphia Municipal Authority, LR, Refunding 5.60%, 11/15/2009 (Insured; FGIC)......................... 2,100,000 2,040,969 Pittsburgh School District, Refunding 5.50%, 9/1/2013 (Insured; FGIC)....... 3,000,000 2,850,240 Pittsburgh Urban Redevelopment Authority: Mortgage Revenue 7.05%, 4/1/2023........................................ 1,785,000 1,825,734 Single Family Mortgage 7.40%, 4/1/2024................................. 860,000 897,556 PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE -------------- -------------- PENNSYLVANIA (CONTINUED) Schuylkill County Industrial Development Authority, Refunding First Mortgage Revenue (Valley Health Concerns) 8.75%, 3/1/2012......... $ 1,000,000 $ 1,039,080 RRR (Schuylkill Energy Resources Inc.) 6.50%, 1/1/2010.................. 7,330,000 7,002,642 Sewickley Valley Hospital Authority, Revenue (Allegheny County-Sewickley Valley Hospital Project) 7.50%, 10/1/2014........................................................ 850,000 939,174 Southeastern Transportation Authority, Special Revenue 5.75%, 3/1/2020 (Insured; FGIC)......................................................... 5,500,000 5,254,810 Washington County Industrial Development Authority, Revenue, Refunding (Presbyterian Medical Center) 6.75%, 1/15/2023 (Insured; FHA)........... 3,000,000 3,050,970 York County Hospital Authority, Revenue (Health Center - Village at Sprenkle Drive) 7.75%, 4/1/2022............. 1,205,000 1,261,695 U.S. RELATED-13.2% Commonwealth of Puerto Rico, Refunding 5%, 7/1/2021......................... 11,730,000 9,864,695 Guam Airport Authority, Revenue 6.70%, 10/1/2023............................ 4,500,000 4,556,880 Guam Government 5.375%, 11/15/2013.......................................... 4,000,000 3,483,920 Puerto Rico Highway and Transportation Authority, Highway Revenue: 5.40%, 7/1/2006....................................................... 10,000,000 9,539,700 5.25%, 7/1/2020....................................................... 6,600,000 5,760,082 Puerto Rico Public Buildings Authority, Guaranteed Public Education and Health Facilities, Refunding 5.70%, 7/1/2009................................... 5,000,000 4,913,750 ------------ TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $285,003,923)................... $287,749,833 ============ SHORT-TERM MUNICIPAL INVESTMENTS-.4% PENNSYLVANIA: Allegheny County Hospital Development Authority, Revenue, VRDN (Presbyterian Health Center) 4.70% (Insured; MBIA) (e).................. $ 900,000 $ 900,000 Bucks County Industrial Development Authority, VRDN (Oxford Falls Housing Finance Corp.) 5.20% (e).......................... 300,000 300,000 ------------- TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $1,200,000).................... $ 1,200,000 ============ TOTAL INVESTMENTS-100.0% (cost $286,203,923)..................................................... $288,949,833 =============
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES SUMMARY OF ABBREVIATIONS AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance FGIC Financial Guaranty Insurance Company Insurance Corporation FHA Federal Housing Administration PCR Pollution Control Revenue FSA Financial Security Assurance RRR Resources Recovery Revenue HR Hospital Revenue SFMR Single Family Mortgage Revenue IDR Industrial Development Revenue SWDR Solid Waste Disposal Revenue LR Lease Revenue VRDN Variable Rate Demand Notes LOC Letter of Credit
SUMMARY OF COMBINED RATINGS (UNAUDITED) FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE - -------- -------- ------------------ -------------------- AAA Aaa AAA 36.3% AA Aa AA 12.2 A A A 18.5 BBB Baa BBB 20.9 BB Ba BB .8 F1 MIG1/P1 SP1/A1 .4 Not Rated(g) Not Rated(g) Not Rated(g) 10.9 ------ 100.0% ======
NOTES TO STATEMENT OF INVESTMENTS: (a) Wholly held by custodian as collateral for delayed delivery security. (b) Secured by letters of credit. (c) 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. (d) Purchased on a delayed delivery basis. (e) Securities payable on demand. The interest rate, which is subject to change, is based upon bank prime rates or an index of market interest rates. (f) Fitch currently provides creditworthiness information for a limited number of investments. (g) Securities which, while not rated by Fitch, Moody's or Standard & Poor's have been determined by the Manager to be of comparable quality to those rated securities in which the Fund may invest. (h) At April 30, 1995, the Series had $81,681,861 (28.2% of net assets) invested in securities whose payment of principal and interest is dependent upon revenue generated from health care projects. See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1995 ASSETS: Investments in securities, at value (cost $286,203,923)-see statement..................................... $288,949,833 Cash.................................................................... 1,043,021 Interest receivable..................................................... 5,428,845 Receivable for investment securities sold............................... 2,117,410 Receivable for shares of Beneficial Interest subscribed................. 385,597 Prepaid expenses........................................ 8,768 ------------ 297,933,474 LIABILITIES: Due to The Dreyfus Corporation.......................................... $ 132,481 Due to Distributor...................................................... 89,385 Payable for investment securities purchased............................. 7,393,085 Payable for shares of Beneficial Interest redeemed...................... 259,179 Accrued expenses ....................................................... 47,796 7,921,926 ---------- NET ASSETS ................................................................ $290,011,548 ============ REPRESENTED BY: Paid-in capital......................................................... $284,243,046 Accumulated net realized gain on investments............................ 3,022,592 Accumulated net unrealized appreciation on investments-Note 3........... 2,745,910 ------------- NET ASSETS at value......................................................... $290,011,548 ============= Shares of Beneficial Interest outstanding: Class A Shares (unlimited number of $.001 par value shares authorized)............... 13,646,390 ============= Class B Shares (unlimited number of $.001 par value shares authorized)............... 4,348,530 ============= NET ASSET VALUE per share: Class A Shares ($219,949,295 / 13,646,390 shares).................................... $16.12 ====== Class B Shares ($70,062,253 / 4,348,530 shares)...................................... $16.11 ====== STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1995 INVESTMENT INCOME: INTEREST INCOME......................................................... $19,301,632 EXPENSES: Management fee-Note 2(a).............................................. $ 1,589,232 Shareholder servicing costs-Note 2(c)................................. 980,796 Distribution fees (Class B shares)-Note 2(b).......................... 325,145 Professional fees..................................................... 42,272 Custodian fees........................................................ 32,086 Prospectus and shareholders' reports.................................. 23,653 Registration fees..................................................... 5,902 Trustees' fees and expenses-Note 2(d)................................. 2,585 Miscellaneous......................................................... 23,310 ----------- 3,024,981 Less--reduction in management fee due to undertakings-Note 2(a)............................................ 26,631 ----------- TOTAL EXPENSES.................................................. 2,998,350 ----------- INVESTMENT INCOME-NET........................................... 16,303,282 REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments-Note 3................................. $ 3,749,748 Net unrealized (depreciation) on investments............................ (2,373,737) ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 1,376,011 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $17,679,293 =========== See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED APRIL 30, --------------------------- 1994 1995 -------------- ------------ OPERATIONS: Investment income-net................................................... $ 15,490,843 $ 16,303,282 Net realized gain (loss) on investments................................. (638,867) 3,749,748 Net unrealized (depreciation) on investments for the year............... (11,269,771) (2,373,737) -------------- -------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 3,582,205 17,679,293 -------------- -------------- DIVIDENDS TO SHAREHOLDERS: From investment income-net: Class A shares........................................................ (13,483,408) (12,907,659) Class B shares........................................................ (2,007,435) (3,395,623) From net realized gain on investments: Class A shares........................................................ (420,030) --- Class B shares........................................................ (79,933) --- In excess of net realized gain on investments: Class A shares........................................................ (74,174) --- Class B shares........................................................ (14,115) --- -------------- -------------- TOTAL DIVIDENDS................................................... (16,079,095) (16,303,282) -------------- -------------- BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from shares sold: Class A shares........................................................ 41,975,312 14,323,499 Class B shares........................................................ 47,612,555 13,962,833 Dividends reinvested: Class A shares........................................................ 7,051,281 6,652,944 Class B shares........................................................ 1,277,978 2,024,872 Cost of shares redeemed: Class A shares........................................................ (24,912,768) (37,539,324) Class B shares........................................................ (1,382,027) (5,465,675) -------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS 71,622,331 (6,040,851) --------------- ------------- TOTAL INCREASE (DECREASE) IN NET ASSETS......................... 59,125,441 (4,664,840) NET ASSETS: Beginning of year....................................................... 235,550,947 294,676,388 -------------- -------------- End of year............................................................. $294,676,388 $290,011,548 ============= ============
SHARES ------------------------------------------------------------------- CLASS A CLASS B --------------------- -------------------- YEAR ENDED APRIL 30, YEAR ENDED APRIL 30, -------------------------------- --------------------------- 1994 1995 1994 1995 ----------- ----------- ---------- --------- CAPITAL SHARE TRANSACTIONS: Shares sold............................ 2,482,244 900,647 2,815,030 881,375 Shares issued for dividends reinvested. 418,362 421,108 76,056 128,216 Shares redeemed........................ (1,489,929) (2,389,230) (83,242) (350,112) ----------- ----------- ---------- --------- NET INCREASE (DECREASE) IN SHARES OUTSTANDING.......... 1,410,677 (1,067,475) 2,807,844 659,479 ============ =========== =========== ========= See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA 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 CLASS B SHARES ----------------------------------------------- --------------------------- YEAR ENDED APRIL 30, YEAR ENDED APRIL 30, ----------------------------------------------- ------------------------- PER SHARE DATA: 1991 1992 1993 1994 1995 1993(1) 1994 1995 ------- ------- ------- ----- ------- -------- ------- ------ Net asset value, beginning of year $14.68 $15.21 $15.73 $16.61 $16.01 $16.10 $16.60 $16.01 ------- ------- ------- ----- ------- -------- ------- ------ INVESTMENT OPERATIONS: Investment income-net............ 1.12 1.06 1.02 .95 .91 .26 .85 .83 Net realized and unrealized gain (loss) on investments................. .55 .56 .99 (.57) .11 .50 (.56) .10 ------- ------- ------- ----- ------- -------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS 1.67 1.62 2.01 .38 1.02 .76 .29 .93 ------- ------- ------- ----- ------- -------- ------- ------ DISTRIBUTIONS: Dividends from investment income-net (1.12) (1.06) (1.02) (.95) (.91) (.26) (.85) (.83) Dividends from net realized gain on investments................. (.02) (.04) (.11) (.03) -- -- (.03) -- Dividends in excess of net realized gain on investments................. -- -- -- -- -- -- -- -- ------- ------- ------- ----- ------- -------- ------- ------ TOTAL DISTRIBUTIONS............ (1.14) (1.10) (1.13) (.98) (.91) (.26) (.88) (.83) ------- ------- ------- ----- ------- -------- ------- ------ Net asset value, end of year..... $15.21 $15.73 $16.61 $16.01 $16.12 $16.60 $16.01 $16.11 ====== ======== ====== ====== ======= ======== ======== ====== TOTAL INVESTMENT RETURN (2).......... 11.74% 10.97% 13.19% 2.17% 6.65% 16.39%(3) 1.65% 6.02% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets .22% .56% .69% .81% .92% 1.14%(3) 1.38% 1.44% Ratio of net investment income to average net assets............. 7.32% 6.75% 6.24% 5.61% 5.77% 4.90%(3) 4.95% 5.22% Decrease reflected in above expense ratios due to undertakings by the Manager................. .79% .41% .25% .12% .01% .15%(3) .10% .01% Portfolio Turnover Rate.......... 25.74% 38.97% 8.64% 7.21% 55.19% 8.64% 7.21% 55.19% Net Assets, end of year (000's Omitted) $113,439 $158,437 $220,920 $235,619 $219,949 $14,631 $59,057 $70,062 - ------------------ (1) From January 15, 1993 (commencement of initial offering) to April 30, 1993. (2) Exclusive of sales load. (3) Annualized. See notes to financial statements.
PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES NOTES TO FINANCIAL STATEMENTS NOTE 1-SIGNIFICANT ACCOUNTING POLICIES: Premier State Municipal Bond Fund (the "Fund") is registered under the Investment Company Act of 1940 ("Act") as a non-diversified open-end management investment company and operates as a series company currently offering fifteen series including the Pennsylvania Series (the "Series"). Dreyfus Service Corporation, until August 24, 1994, acted as the distributor of the Fund's shares. Dreyfus Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation ("Manager"). Effective August 24, 1994, the Manager became a direct subsidiary of Mellon Bank, N.A. On August 24, 1994, Premier Mutual Fund Services, Inc. (the "Distributor") was engaged as the Fund's distributor. The Distributor, located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI Distributions Services, Inc., a provider of mutual fund administration services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company of which is Boston Institutional Group, Inc. The Fund accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series' operations; expenses which are applicable to all series are allocated among them on a pro rata basis. The Series offers both Class A and Class B shares. Class A shares are subject to a sales charge imposed at the time of purchase and Class B shares are subject to a contingent deferred sales charge imposed at the time of redemption on redemptions made within five years of purchase. Other differences between the two Classes include the services offered to and the expenses borne by each Class and certain voting rights. (A) PORTFOLIO VALUATION: The Series' investments (excluding options and financial futures on municipal and U.S. treasury securities) are valued each business day by an independent pricing service ("Service") approved by the Board of Trustees. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Options and financial futures on municipal and U.S. treasury securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Investments not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. (B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Interest income, adjusted for amortization of premiums and original issue discounts 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, PENNSYLVANIA 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 average daily value of the Series' net assets and is payable monthly. The Agreement provides for an expense reimbursement from the Manager should the Series' aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and extraordinary expenses, exceed the expense limitation of any state having jurisdiction over the Series for any full fiscal year. However, the Manager had undertaken from May 1, 1994 through June 30, 1994 to waive receipt of the management fee payable to it by the Series in excess of an annual rate of .50 of 1% (excluding certain expenses as described above) of the Series' average daily net assets and thereafter, had undertaken from July 1, 1994 through July 7, 1994 to reduce the management fee paid by the Series, to the extent that the Series' aggregate expenses (excluding certain expenses as described above) exceeded specified annual percentages of the Series' average daily net assets. The reduction in management fee, pursuant to the undertakings, amounted to $26,631 for the year ended April 30, 1995. Dreyfus Service Corporation retained $9,316 during the year ended April 30, 1995 from commissions earned on sales of the Series' Class A shares. Prior to August 24, 1994, Dreyfus Service Corporation retained $27,522 during the year ended April 30, 1995 from contingent deferred sales charges imposed upon redemptions of the Series' Class B shares. (B) On August 3, 1994, Series' shareholders approved a revised Distribution Plan with respect to Class B shares only (the "Class B Distribution Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the Class B Distribution Plan, effective August 24, 1994, the Fund pays the Distributor for distributing the Series' Class B shares at an annual rate of .50 of 1% of the value of the average daily net assets of Class B shares. Prior to August 24, 1994, the Distribution Plan ("prior Class B Distribution Plan") provided that the Fund pay Dreyfus Service Corporation at an annual rate of .50 of 1% of the value of the Series' Class B shares average daily net assets, for the costs and expenses in connection with advertising, marketing and distributing the Series' Class B shares. Dreyfus Service Corporation made payments to one or more Service Agents based on the value of the Series' Class B shares owned by clients of the Service Agent. During the year ended April 30, 1995, $226,769 was charged to the Series pursuant to the Class B Distribution Plan and $98,376 was charged to the Series pursuant to the prior Class B Distribution Plan. PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES NOTES TO FINANCIAL STATEMENTS (CONTINUED) (C) Under the Shareholder Services Plan, the Series pays the Distributor, at an annual rate of .25 of 1% of the value of the average daily net assets of Class A and Class B shares for servicing shareholder accounts. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the Series and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents in respect of these services. The Distributor determines the amounts to be paid to Service Agents. From May 1, 1994 through August 23, 1994, $184,959 and $49,188 were charged to Class A and Class B shares, respectively, by Dreyfus Service Corporation. From August 24, 1994 through April 30, 1995, $374,846 and $113,385 were charged to the Class A and Class B shares, respectively, by the Distributor pursuant to the Shareholder Services Plan. (D) Prior to August 24, 1994, certain officers and trustees of the Fund were "affiliated persons," as defined in the Act, of the Manager and/or Dreyfus Service Corporation. Each trustee who is not an "affiliated person" receives from the Fund an annual fee of $2,500 and an attendance fee of $250 per meeting. The Chairman of the Board receives an additional 25% of such compensation. NOTE 3-SECURITIES TRANSACTIONS: The aggregate amount of purchases and sales of investment securities amounted to $248,986,025 and $255,289,378, respectively, for the year ended April 30, 1995, and consisted entirely of long-term and short-term municipal investments. At April 30, 1995, accumulated net unrealized appreciation on investments was $2,745,910, consisting of $6,610,872 gross unrealized appreciation and $3,864,962 gross unrealized depreciation. At April 30, 1995, the cost of investments for Federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS SHAREHOLDERS AND BOARD OF TRUSTEES PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Premier State Municipal Bond Fund, Pennsylvania Series (one of the Series constituting the Premier State Municipal Bond Fund) as of April 30, 1995, 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, 1995 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, Pennsylvania Series at April 30, 1995, 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 Singature Logo) New York, New York June 6, 1995 IMPORTANT TAX INFORMATION (UNAUDITED) In accordance with Federal tax law, the Series hereby designates all the dividends paid from investment income--net during the fiscal year ended April 30, 1995 as "exempt--interest dividends" (not subject to regular Federal and, for individuals who are Pennsylvania residents, Pennsylvania personal income taxes). As required by Federal tax law rules, shareholders will receive notification of their portion of the Series' taxable ordinary dividends (if any) and capital gain distributions (if any) paid for the 1995 calendar year on Form 1099-DIV which will be mailed by January 31, 1996. PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES 200 Park Avenue New York, NY 10166 MANAGER The Dreyfus Corporation 200 Park Avenue New York, NY 10166 CUSTODIAN The Bank of New York 90 Washington Street New York, NY 10286 TRANSFER AGENT & DIVIDEND DISBURSING AGENT The Shareholder Services Group, Inc. P.O. Box 9671 Providence, RI 02940 Further information is contained in the Prospectus, which must precede or accompany this report. Printed in U.S.A. 058/620AR954 Annual Report PREMIER STATE MUNICIPAL BOND FUND PENNSYLVANIA SERIES April 30, 1995 (Dreyfus Logo) EX-99.A 2 GRAPH IN THE PRESIDENT'S LETTER OF THE ANNUAL REPORT COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX EXHIBIT A: ___________________________________________________ | | | | | | | PREMIER STATE | | PERIOD | LEHMAN BROTHERS |MUNICIPAL BOND FUND,| | | MUNICIPAL |PENNSYLVANIA SERIES | | | BOND INDEX * | (CLASS A SHARES) | |-----------|-----------------|--------------------| | 7/30/87 | 10,000 | 9,548 | | 4/30/88 | 10,510 | 9,611 | | 4/30/89 | 11,448 | 10,784 | | 4/30/90 | 12,273 | 11,561 | | 4/30/91 | 13,684 | 12,918 | | 4/30/92 | 14,984 | 14,335 | | 4/30/93 | 16,880 | 16,226 | | 4/30/94 | 17,245 | 16,577 | | 4/30/95 | 18,392 | 17,679 | |--------------------------------------------------| * Source: Lehman Brothers -----END PRIVACY-ENHANCED MESSAGE-----