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<SEC-DOCUMENT>0000806176-97-000015.txt : 19970709
<SEC-HEADER>0000806176-97-000015.hdr.sgml : 19970709
ACCESSION NUMBER: 0000806176-97-000015
CONFORMED SUBMISSION TYPE: N-30D
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 19970430
FILED AS OF DATE: 19970708
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: 1940 Act
SEC FILE NUMBER: 811-04906
FILM NUMBER: 97637499
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>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of the Dreyfus Premier State
Municipal Bond Fund _ Massachusetts Series for its fiscal year ended April
30, 1997 as shown in the following table:
TOTAL RETURN* DISTRIBUTION RATE**
____________ ____________________
Class A....................... 7.08% 5.17%
Class B....................... 6.63% 4.90%
Class C....................... 6.55% 4.65%
Economic Review
The U.S. economy just kept rolling ahead over the reporting period.
Inflation remained subdued. The unemployment rate fell
to its lowest level in 24 years, and a surge in tax revenues meant good news
for the Administration's budget reduction program. Overall, the economic news
has been stellar.
The economy grew at a robust 5.6% annual rate during the first quarter,
the best quarter in nine years. Aided by falling energy prices, and with no
sign of shortages of raw materials, inflation remained in check. On the
consumer level, the Consumer Price Index (CPI) remained below 3%. Excluding
volatile food and energy prices, the CPI is slowing down so far this year,
running at an annual rate of 2.5%. Inflation has been further restrained by
the strong dollar which has moderated the price of imports and eased
potential strains on domestic production capacity.
The strong economy has put an increasing number of people to work. This
tightening of the labor market has been a key factor in the implementation of
monetary policy by the Federal Reserve Board's Open Market Committee (FOMC).
The unemployment rate has been less than 5.5% since June 1996, the lowest
sustained rate since the late 1980s. The rate fell to 4.9% in April of this
year, its lowest level in 24 years. So far, neither strong economic growth
nor wage increases have resulted in any price pressure at the consumer level.
Through the first quarter (the latest available data), total employment costs
(including wages and benefits) rose about the same as inflation.
Renewed confidence, spurred by increasing job security and low
inflation, has resulted in a surge in consumer spending. In the first quarter
of the year, spending rose 6.4%, almost double the rate of the previous
year's fourth quarter. The combined six-month performance was the largest
increase in consumer spending over the past ten years. Retail sales have
spurted in the early part of this year as well; first quarter results were
sharply higher than in the last quarter of 1996. Not surprisingly, industrial
production has been building momentum over the reporting period. The latest
report on capacity utilization indicated the highest level in two years. So
far, while the potential exists for production bottlenecks, prices for raw
materials and worker wage demands have remained modest.
Continued economic growth and the resulting rise in tax revenues have
slashed further the Federal budget deficit. Administration officials estimate
that this fiscal year's deficit will be about $75 billion, its lowest level
in 23 years. Such good news on the deficit could make it easier to negotiate
the Administration's bipartisan plan to balance the budget by 2002.
While we seem to be enjoying the best of all possible economic worlds,
the potential for future inflation is what concerns the Fed. Such concern
resulted in the March decision by the FOMC, the policy-making arm of the
Federal Reserve, to raise the Federal Funds rate one quarter of a percentage
point to 5.50%. (The Federal Funds rate is the rate of interest banks charge
each other for overnight loans.) The traditional assumption that strong
economic growth and low unemployment will eventually result in rising
inflation still drives the Fed's monetary policy initiatives. There is little
reason to suspect that the Fed will soon change this policy.
Market Environment
Despite the assumption of a twenty-five basis point rate hike
incorporated into most long-term securities in advance of the Federal Reserve
meeting on March 25, prices of those securities actually fell an additional
twenty-five basis points after the announcement, reaching a 7.17% yield on
the thirty-year Treasury bellwether bond on April 17. Due to good inflation
data, the market later recovered to the 6.85% level, and then retreated to a
7.00% yield, after the FOMC, at its meeting on May 20, decided to hold
short-term rates steady. This action normally would have encouraged higher
prices, but has instead generated some price erosion.
The volatility in the general fixed income market belies the remarkable
stability of the municipal bond market. Since February 15, the thirty-year
Treasury bond has corrected by nearly forty basis points. By comparison,
municipal bond futures are off only one and three-quarters points and cash
securities (the bonds themselves) are flat to off one point. This substantial
outperformance by municipals has led to municipal/Treasury yield ratios which
are as low as have been seen in over two years.
Portfolio Overview
Your portfolio is made up of securities that are indicative of the
relative stability of municipals compared to their taxable counterparts. Many
new issue purchases and existing holdings are slightly shorter than the
traditional maturity range to enable the Fund to maintain a competitive yield
while reducing potential volatility should interest rates change. Over the
reporting period the Fund was comprised of many securities with 6% or greater
coupons for added stability and income, as well as some 5% to 5-1/4% coupon
securities for potential price performance. These barbell strategy-oriented
securities provide balance and liquidity, and are in especially high demand
by retail and institutional investors. This strategy continues to be utilized
due to its success over the past year.
While there are many strategies at work in the Fund, one of the central
themes continues to be emphasizing income. Since August, the Bond Buyer
Revenue Bond Index has varied only 15 basis points above or below 5.95%. This
narrow range indicator and the expectation of its continuation provide little
impetus to make changes to that theme. However, we continue to evaluate the
potentially changing financial landscape and stand ready to adjust our
positions accordingly.
Enclosed please find a copy of the recent portfolio holdings for your
review.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 16, 1997
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 and Class C shares.
** Distribution rate per share is based upon dividends per share paid from
net investment income during the period, divided by the maximum offering
price 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 and Class C shares, adjusted for
capital gain distributions. Some income may be subject to the Federal
Alternative Minimum Tax (AMT) for certain shareholders.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES APRIL 30, 1997
[Exhibit A]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER STATE
MUNICIPAL BOND FUND,
MASSACHUSETTS SERIES CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX
$22,014
Lehman Brothers
Municipal Bond Index*
Dollars
$18,821
Dreyfus Premier State
Municipal Bond Fund,
Massachusetts Series
(Class A Shares)
*Source: Lehman Brothers
[Exhibit A]
<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 4/30/97 Sales Charge Sales Charge (4.5%) PERIOD ENDED 4/30/97 Redemption Redemption*
__________ ________________ ____________________ _____________________ ____________ __________________
<S> <C> <C> <C> <C> <C>
1 Year 7.08% 2.28% 1 Year 6.63% 2.66%
5 Year 6.68 5.70 From Inception (1/15/93) 5.34 4.95
From Inception (5/28/87) 7.07 6.58
CLASS C SHARES
__________________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
PERIOD ENDED 4/30/97 No Redemption Redemption**
_________ _______________ ____________________
1 Year 6.55% 5.56%
From Inception (8/15/95) 5.40 5.40
________________________
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, Massachusetts
Series on 5/28/87 (Inception Date) to a $10,000 investment made in the Lehman
Brothers Municipal Bond Index on that date. For comparative purposes, the
value of the Index on 5/31/87 is used as the beginning value on 5/28/87. All
dividends and capital gain distributions are reinvested. Performance for
Class B and Class C shares will vary from the performance of Class A shares
shown above due to differences in charges and expenses.
The Series invests primarily in Massachusetts 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 Massachusetts
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.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF INVESTMENTS APRIL 30, 1997
Principal
Long-Term Municipal Investments_98.6% Amount Value
_____________ _____________
Massachusetts_73.3%
Boston Industrial Development Financing Authority, Sewer Facility Revenue
(Harbor Electric Energy Co. Project) 7.375%, 5/15/2015.................. $ 2,500,000 $ 2,676,850
Leominster 7.50%, 4/1/2009 (Insured; MBIA, Prerefunded 4/1/2000) (a)........ 1,275,000 1,398,114
Lynn Water and Sewer Commission, General Revenue
7.25%, 12/1/2010 (Insured; MBIA, Prerefunded 12/1/2000) (a)............. 1,000,000 1,102,400
Massachusetts Bay Transportation Authority:
7%, 3/1/2021............................................................ 1,000,000 1,167,500
7.222%, 3/1/2021 (Insured; MBIA) (b,c).................................. 2,300,000 2,058,500
Massachusetts Commonwealth 7%, 8/1/2012 (Prerefunded 8/1/2001) (a).......... 1,850,000 2,037,572
Massachusetts Education Loan Authority, Education Loan Revenue
7.75%, 1/1/2008 (Insured; MBIA)......................................... 1,115,000 1,139,630
Massachusetts Health and Educational Facilities Authority, Revenue:
(Baystate Medical Center) 6%, 7/1/2026 (Insured; FSA)................... 2,000,000 2,010,300
(Cooley Dickinson Hospital):
5.50%, 11/15/2018 (Insured; AMBAC).................................... 3,500,000 3,357,165
5.50%, 11/15/2025 (Insured; AMBAC).................................... 1,500,000 1,422,555
(Medical Center of Central Massachusetts) 7.10%, 7/1/2021............... 1,000,000 1,060,320
(New England Deaconess Hospital) 6.875%, 4/1/2022....................... 4,000,000 4,281,840
(Refunding_Lowell General Hospital) 5.25%, 6/1/2016 (Insured; FSA)...... 2,000,000 1,884,920
(Refunding_Milton Hospital) 7%, 7/1/2016 (Insured; MBIA)................ 2,050,000 2,196,493
(South Shore Hospital) 7.50%, 7/1/2020
(Insured; MBIA, Prerefunded 7/1/2000) (a)............................. 2,000,000 2,199,640
(University Hospital) 7.25%, 7/1/2019 (Insured; MBIA)................... 2,750,000 2,966,370
Massachusetts Housing Finance Agency, SFHR:
7.80%, 12/1/2005........................................................ 815,000 874,462
7.90%, 6/1/2014......................................................... 785,000 844,370
7.95%, 6/1/2023......................................................... 1,885,000 2,006,733
Massachusetts Industrial Finance Agency, Revenue:
(Provider Lease Program) 8.75%, 7/15/2009............................... 675,000 700,657
(Refunding_Phillips Academy) 5.375%, 9/1/2023........................... 1,250,000 1,195,663
(Water Treatment_American Hingham) 6.95%, 12/1/2035..................... 3,000,000 3,114,480
Massachusetts Port Authority, Special Project Revenue
(Harborside Hyatt) 10%, 3/1/2026........................................ 3,000,000 3,339,060
Massachusetts Water Pollution Abatement Trust
(Pool Loan Program) 5.40%, 2/1/2011..................................... 175,000 174,095
Massachusetts Water Resources Authority:
5%, 12/1/2016 (Insured; MBIA)........................................... 3,000,000 2,752,320
5%, 12/1/2025 (Insured; MBIA)........................................... 3,375,000 3,019,511
South Essex Sewer District, Refunding 5.25%, 6/15/2024 (Insured; MBIA)...... 1,000,000 932,310
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_____________ _____________
U. S. Related_25.3%
Guam Airport Authority, Revenue 6.70%, 10/1/2023............................ $ 1,500,000 $ 1,535,205
Puerto Rico Commonwealth:
Public Improvement 5.375%, 7/1/2025..................................... 2,500,000 2,335,150
Refunding:
6%, 7/1/2014.......................................................... 2,000,000 2,015,420
5.375%, 7/1/2022 (Insured; MBIA)...................................... 2,500,000 2,399,950
Puerto Rico Commonwealth Highway and Transportation Authority,
Highway Revenue:
6.478%, 7/1/2009 (b).................................................. 1,000,000 947,500
6.578%, 7/1/2010 (b).................................................. 1,000,000 936,250
Puerto Rico Housing Finance Corporation, MFMR
7.50%, 4/1/2022 (LOC; Government Development Bank) (d).................. 3,355,000 3,530,332
Puerto Rico Public Buildings Authority,
Guaranteed Government Facilities Revenue 6.25%, 7/1/2015 (Insured; AMBAC) 1,100,000 1,195,920
Virgin Islands Public Finance Authority, Revenue, Refunding
7.25%, 10/1/2018........................................................ 2,750,000 2,977,205
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $67,707,424).................... $69,786,762
=============
Short-Term Municipal Investments_1.4%
Massachusetts:
Massachusetts Health and Educational Facilities Authority, Revenue, VRDN
(Saint Elizabeth's Hospital) 3.24% (Insured; FSA) (b) (cost $1,000,000). $ 1,000,000 $ 1,000,000
=============
TOTAL INVESTMENTS_100.0% (cost $68,707,424)................................. $70,786,762
=============
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation MFMR Multi-Family Mortgage Revenue
FSA Financial Security Assurance SFHR Single Family Housing Revenue
LOC Letter of Credit VRDN Variable Rate Demand Notes
MBIA Municipal Bond Investors Assurance
Insurance Corporation
Summary of Combined Ratings (Unaudited)
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
____ _______ __________________ ____________________
AAA Aaa AAA 46.9%
AA Aa AA 12.0
A A A 18.2
BBB Baa BBB 13.0
Not Rated (f) Not Rated (f) Not Rated (f) 9.9
______
100.0%
========
Notes to Statement of Investments:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b) Inverse floater security_the interest rate is subject to change
periodically.
(c) Security exempt from registration under Rule 144A of the Securities
Act of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30,
1997, this security amounted to $2,058,500 or 2.9% of net assets.
(d) Secured by letters of credit.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's and Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
(g) At April 30, 1997, 30.8% of the Fund's net assets are insured by
MBIA.
(h) At April 30, 1997, the Fund had $20,319,283 (28.3% of net assets)
invested in securities whose payment of principal and interest is
dependent upon revenues generated from health care projects.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997
Cost Value
_____________ _____________
ASSETS: Investments in securities_See Statement of Investments $68,707,424 $70,786,762
Interest receivable........................ 1,287,856
Prepaid expenses........................... 4,649
_____________
72,079,267
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 33,202
Due to Distributor......................... 17,169
Cash overdraft due to Custodian............ 66,189
Payable for shares of Beneficial Interest redeemed 58,609
Accrued expenses........................... 30,219
_____________
205,388
_____________
NET ASSETS.................................................................. $71,873,879
================
REPRESENTED BY: Paid-in capital............................ $69,784,902
Accumulated net realized gain (loss) on investments 9,639
Accumulated net unrealized appreciation (depreciation)
....................... on investments_Note 4 2,079,338
_____________
NET ASSETS.................................................................. $71,873,879
================
NET ASSET VALUE PER SHARE
_________________________________
Class A Class B Class C
_______________ _______________ _______________
Net Assets............................................. $65,808,545 $6,064,240 $1,094
Shares Outstanding............................... 5,771,154 532,146 95.867
NET ASSET VALUE PER SHARE....................... $11.40 $11.40 $11.41
====== ======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1997
INVESTMENT INCOME
INCOME Interest Income............................ $4,688,815
EXPENSES: Management fee_Note 3(a)................... $ 404,124
Shareholder servicing costs_Note 3(c)...... 229,135
Distribution fees_Note 3(b)................ 28,947
Professional fees.......................... 13,696
Custodian fees............................. 7,806
Prospectus and shareholders' reports....... 7,232
Registration fees.......................... 5,782
Trustees' fees and expenses_Note 3(d)...... 1,130
Loan commitment fees_Note 2................ 416
Miscellaneous.............................. 8,107
____________
Total Expenses....................... 706,375
______________
INVESTMENT INCOME_NET....................................................... 3,982,440
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $ 6,502
Net unrealized appreciation (depreciation)
on investments 1,082,966
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 1,089,468
______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $5,071,908
==============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
April 30, 1997 April 30, 1996
___________________ ___________________
OPERATIONS:
Investment income_net................................................... $ 3,982,440 $ 4,274,002
Net realized gain (loss) on investments................................. 6,502 2,354,880
Net unrealized appreciation (depreciation) on investments............. 1,082,966 (2,363,586)
___________________ ___________________
Net Increase (Decrease) in Net Assets Resulting from Operations... 5,071,908 4,265,296
___________________ ___________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Class A shares........................................................ (3,696,455) (4,029,063)
Class B shares........................................................ (285,931) (244,904)
Class C shares........................................................ (54) (35)
Net realized gain on investments:
Class A shares........................................................ (1,546,112) (164,269)
Class B shares........................................................ (134,987) (11,333)
Class C shares........................................................ (24) (2)
___________________ ___________________
Total Dividends................................................... (5,663,563) (4,449,606)
___________________ ___________________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 3,547,855 2,996,973
Class B shares.................................................... 1,371,567 1,256,028
Class C shares........................................................ ___ 1,000
Dividends reinvested:
Class A shares........................................................ 3,020,218 2,291,472
Class B shares........................................................ 264,120 142,581
Class C shares........................................................ 75 37
Cost of shares redeemed:
Class A shares........................................................ (9,033,997) (9,062,697)
Class B shares........................................................ (771,968) (324,846)
___________________ ___________________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (1,602,130) (2,699,452)
___________________ ___________________
Total Increase (Decrease) in Net Assets......................... (2,193,785) (2,883,762)
NET ASSETS:
Beginning of Period..................................................... 74,067,664 76,951,426
___________________ ___________________
End of Period........................................................... $71,873,879 $74,067,664
================ ====================
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
_________________________________________
Year Ended Year Ended
April 30, 1997 April 30, 1996
_________________ __________________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold............................................................ 306,570 255,371
Shares issued for dividends reinvested............................ 260,724 194,345
Shares redeemed........................................................ (781,555) (771,980)
_________________ __________________
Net Increase (Decrease) in Shares Outstanding (214,261) (322,264)
================= ====================
Class B
_______
Shares sold......................................................... 118,977 106,403
Shares issued for dividends reinvested.......................... 22,810 12,098
Shares redeemed...................................................... (66,988) (27,545)
_________________ __________________
Net Increase (Decrease) in Shares Outstanding 74,799 90,956
================= ====================
Class C*
_________
Shares sold............................................................ ____ 86
Shares issued for dividends reinvested................................. 7 3
_________________ __________________
Net Increase (Decrease) in Shares Outstanding 7 89
================= ====================
__________________________
*From August 15, 1995 (commencement of initial offering) to April 30, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS 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.
Class A Shares
_______________________________________________________
Year Ended April 30,
_______________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
_______ _______ _______ _______ _______
Net asset value, beginning of period......... $11.50 $11.53 $11.64 $12.13 $11.41
_______ _______ _______ _______ _______
Investment Operations:
Investment income_net........................ .63 .66 .69 .71 .73
Net realized and unrealized gain (loss)
on investments............................. .17 __ (.06) (.44) .73
_______ _______ _______ _______ _______
Total from Investment Operations............. .80 .66 .63 .27 1.46
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income_net......... (.63) (.66) (.69) (.71) (.73)
Dividends from net realized gain on investments (.27) (.03) __ (.05) (.01)
Dividends in excess of net realized gain
on investments............................. __ __ (.05) __ __
_______ _______ _______ _______ _______
Total Distributions.......................... (.90) (.69) (.74) (.76) (.74)
_______ _______ _______ _______ _______
Net asset value, end of period............... $11.40 $11.50 $11.53 $11.64 $12.13
======= ======= ======= ======= ========
TOTAL INVESTMENT RETURN*......................... 7.08% 5.69% 5.72% 2.08% 13.14%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .92% .92% .94% .82% .69%
Ratio of net investment income
to average net assets...................... 5.46% 5.57% 6.04% 5.80% 6.16%
Decrease reflected in above expense ratios
due to undertakings by the Manager......... __ __ .01% .11% .24%
Portfolio Turnover Rate...................... 24.45% 34.86% 13.62% 12.04% 11.36%
Net Assets, end of period (000's Omitted).... $65,809 $ 68,812 $ 72,731 $76,865 $79,701
_______________________
* Exclusive of sales load.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS 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.
Class B Shares
_______________________________________________________
Year Ended April 30,
_______________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993(1)
_______ _______ _______ _______ _______
Net asset value, beginning of period......... $11.49 $11.52 $11.63 $12.13 $11.79
_______ _______ _______ _______ _______
Investment Operations:
Investment income_net........................ .57 .60 .63 .64 .19
Net realized and unrealized gain (loss)
on investments............................. .18 __ (.06) (.45) .34
_______ _______ _______ _______ _______
Total from Investment Operations............. .75 .60 .57 .19 .53
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income_net......... (.57) (.60) (.63) (.64) (.19)
Dividends from net realized gain on investments (.27) (.03) __ (.05) __
Dividends in excess of net realized gain
on investments............................. __ __ (.05) __ __
_______ _______ _______ _______ _______
Total Distributions.......................... (.84) (.63) (.68) (.69) (.19)
_______ _______ _______ _______ _______
Net asset value, end of period............... $11.40 $11.49 $11.52 $11.63 $12.13
======= ======= ======= ======= ========
TOTAL INVESTMENT RETURN(2)....................... 6.63% 5.15% 5.15% 1.44% 15.56%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.43% 1.43% 1.45% 1.36% 1.15%(3)
Ratio of net investment income
to average net assets...................... 4.94% 5.03% 5.47% 5.18% 4.92%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... __ __ .01% .10% .13%(3)
Portfolio Turnover Rate...................... 24.45% 34.86% 13.62% 12.04% 11.36%
Net Assets, end of period (000's Omitted).... $ 6,064 $5,255 $4,220 $3,702 $1,066
__________________________
(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.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS 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.
CLASS C SHARES
______________________________
YEAR ENDED APRIL 30,
______________________________
PER SHARE DATA: 1997 1996(1)
________ ________
Net asset value, beginning of period.................................... $11.48 $11.59
________ ________
Investment Operations:
Investment income_net................................................... .54 .40
Net realized and unrealized gain (loss)
on investments........................................................ .20 (.08)
________ ________
Total from Investment Operations........................................ .74 .32
________ ________
Distributions:
Dividends from investment income_net.................................... (.54) (.40)
Dividends from net realized gain on investments......................... (.27) (.03)
________ ________
Total Distributions..................................................... (.81) (.43)
________ ________
Net asset value, end of period.......................................... $11.41 $11.48
======= =========
TOTAL INVESTMENT RETURN(2).................................................. 6.55% 3.76%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................. 1.65% 1.69%(3)
Ratio of net investment income
to average net assets................................................. 4.64% 4.72%(3)
Portfolio Turnover Rate................................................. 24.45% 34.86%
Net Assets, end of period (000's Omitted)............................... $1 $1
_________________________
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS 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 Massachusetts 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.
On January 8, 1997, the Trust's Trustees approved a change to the Trust's
name from "Premier State Municipal Bond Fund" to "Dreyfus Premier State
Municipal Bond Fund" which change became effective March 31, 1997.
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.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
(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, if any, 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.
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. For the period ended April
30, 1997, 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 $831 during the period ended April 30, 1997, 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, 1997,
$28,938 was charged to the Fund for the Class B shares and $9 was charged to
the Fund for the Class C shares.
(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, 1997,
$169,221, $14,469 and $3 were charged to Class A, Class B and Class C shares,
respectively, by the Distributor 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. Such
compensation amounted to $32,505 during the period ended April 30, 1997.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS 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, 1997
amounted to $17,662,134 and $19,031,186, respectively.
At April 30, 1997, accumulated net unrealized appreciation on investments
was $2,079,338, consisting of $2,785,719 gross unrealized appreciation and
$706,381 gross unrealized depreciation.
At April 30, 1997, 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).
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus Premier State Municipal Bond Fund, Massachusetts Series
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier State Municipal
Bond Fund, Massachusetts Series (one of the Funds constituting the Dreyfus
Premier State Municipal Bond Fund) as of April 30, 1997, 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, 1997 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, Massachusetts Series
at April 30, 1997, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated years, in conformity
with generally accepted accounting principles.
[Ernst & Young LLP signature logo]
New York, New York
June 5, 1997
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended April 30, 1997:
_ all the dividends paid from investment income_net are "exempt -interest
dividends" (not subject to regular Federal and, for individuals who are
Massachusetts residents, Massachusetts personal income taxes), and
_ the Fund hereby designates $.265 per share as a long-term capital gain
distribution (54.43% of which is not subject to Massachusetts personal income
tax) of the $.2665 per share paid on December 5, 1996.
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 1997 calendar year
on Form 1099-DIV which will be mailed by January 31, 1998.
DREYFUS PREMIER STATE MUNICIPAL
BOND FUND, MASSACHUSETTS 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. 063/622AR974
Annual Report
Dreyfus Premier State
Municipal Bond Fund
Massachusetts Series
April 30, 1997
[lion2 hres logo]
Registration Mark
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<DESCRIPTION>GRAPH IN PRESIDENT'S LETTER OF THE ANNUAL REPORT
<TEXT>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS
SERIES CLASS A SHARES AND THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX
EXHIBIT A:
DREYFUS PREMIER STATE
PERIOD LEHMAN BROTHERS MUNICIPAL BOND FUND,
MUNICIPAL MASSACHUSETTS SERIES
BOND INDEX * (CLASS A SHARES)
5/28/87 10,000 9,552
4/30/88 10,929 9,403
4/30/89 11,905 10,523
4/30/90 12,762 11,100
4/30/91 14,229 12,347
4/30/92 15,581 13,621
4/30/93 17,553 15,411
4/30/94 17,932 15,731
4/30/95 19,124 16,631
4/30/96 20,644 17,577
4/30/97 22,014 18,821
*Source: Lehman Brothers
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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