-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MjjEBjguvdtARL9tzB3nCu/Gve92f/SLtINba88g3OM+jBfx74A2bZ2xS8JKO2gN 9b8qqCawGNfIYCi/xzMn7w== 0000806176-98-000002.txt : 19980108 0000806176-98-000002.hdr.sgml : 19980108 ACCESSION NUMBER: 0000806176-98-000002 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971031 FILED AS OF DATE: 19980107 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS PREMIER STATE MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0000806176 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MD FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04906 FILM NUMBER: 98501894 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 N-30D 1 SEMI-ANNUAL REPORT PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES LETTER TO SHAREHOLDERS Dear Shareholder: We are pleased to report the performance for Dreyfus Premier State Municipal Bond Fund-Maryland Series for the six-month period ended October 31, 1997 as shown in the following table:
Annualized Total Return* Distribution Rate** ___________ ________________ Class A Shares......................... 6.42% 4.86% Class B Shares......................... 6.14% 4.57% Class C Shares......................... 6.00% 4.32%
Economic Review With the level of inflation as low as it has been seen since 1964 and unemployment still near a 23-year low, the economy continued its solid growth over the reporting period. Gross Domestic Product (the "GDP")-the dollar total of all goods and services produced in the United States-has grown in excess of 3% for each of the past four quarters, a level and consistency of gain unmatched since 1984. This extraordinary economic performance has been fueled by huge business investment in new plant and equipment as well as a renewed surge in consumer spending over the summer. Consumers play a substantial role in determining the course of the economy, since their spending accounts for two thirds of all economic activity. Retail sales rose through the summer and into September, although there was some sign of deceleration as the third quarter progressed. The big economic story continued to be the lack of inflation in an economy now in its seventh year of expansion. This remarkable price stability, at a time in the business cycle when inflationary pressures would usually be apparent, has enabled the Federal Reserve Board (the "Fed") to refrain from tightening monetary policy. The Federal Open Market Committee (the "FOMC"), the policy-making arm of the Fed, has raised interest rates just once in over two years, a period roughly coinciding with the surge of growth in the economy. The last increase in short-term interest rates came on March 25, 1997, when the FOMC increased the Federal Funds rate by a modest one quarter of a percentage point to 5.50%. (The Federal Funds rate is the rate of interest that banks charge one another for overnight loans.) Of course, the recent financial market turbulence arising from currency devaluations in some of the economically weaker Southeast Asian countries has added a cautionary note to any Fed monetary actions that might further roil investment markets. The Southeast Asian economies have been cooling or in outright recession for some time, and represent a large share of the global economy and the U.S. import/export market. The recent crisis has boosted the value of the U.S. dollar and could further dampen the demand for U.S. exports to this region. This bodes well for continued low inflation in the U.S. and weakens the argument that we are on the brink of price acceleration. In fact, inflation remains in check. The Implicit Price Deflator, an indicator of inflation that measures the prices of all goods and services in the U.S., has risen at an annual rate of less than 2% for the past two quarters. This favorable trend in prices has been mirrored by both the Consumer Price Index (a measure of the average change in the prices paid by urban consumers for a fixed market basket of goods and services) and the Producer Price Index (a measure of the average change in the prices of all commodities at all stages of processing produced for sale in primary markets in the U.S.). The Labor Department's Employment Cost Index, a broad measure of changes in wages and benefits, has indicated relatively modest increases in labor costs. Still, the labor market remains tight, with the unemployment rate at a low level unmatched in 23 years. Whether the economy will slow without further monetary restraint by the Fed remains an open question. Industrial production has been strong and operating rates, an indicator of possible future price pressures, have edged to their highest level in two years. Of paramount concern to Fed Chairman Alan Greenspan is the possibility of continuing economic growth so strong that the unemployment rate is driven even lower, and a subsequent corresponding upsurge in wage rates reignites inflation. The performance of the economy over the coming months appears crucial in determining whether the Fed will actively restrain the economy. We remain alert to changes in economic trends that would increase the risk of rising inflation and, consequently, the prospect of higher interest rates. Market Environment The supply of new issues in Maryland has been rather modest over the last year, but whenever a large or small issue has been attractively priced, the Fund has participated in those new issues. On the other hand, demand has remained quite strong because secondary supply is usually very low. Hence, the Fund was able to slowly sell bonds which had achieved our price goals. When the municipal bond markets become weak, the secondary supply of Maryland issues usually increases because national bond funds will sell Maryland issues when they need to raise cash. Thus, the Fund has been able to purchase undervalued Maryland issues in the secondary markets. The Fund intends to continue to purchase both primary and secondary issues that represent value when they become available. Municipals have gone from being fairly valued to currently being very cheap when compared to the U. S. Government bond market, because municipal supply increased as the bond yields declined. This trend is especially true of the long-maturity bonds, where the bulk of new issue supply has traditionally been issued. Supply normally declines as we approach the end of the year, while demand should increase because of heavy interest payments and bond maturities on January 1, 1998. Municipals should then have a good chance of outperforming the Treasury market. The Portfolio Interest rates were fairly low in late 1996 and early 1997, so the Fund maintained a defensive posture and purchased modest premium bonds which were expected to perform well in a declining market. In the spring of 1997, when interest rates rose, the Fund reversed its strategy and purchased deep discount securities with short calls and higher yields. These bonds represented excellent value because they were out of favor with many institutional fund managers, and were purchased at a substantial discount when compared to the rest of the municipal market. By June of 1997, interest rates had fallen and the Fund's strategy reverted back to buying bonds at a moderate premium. This strategy has remained in place with the exception of an occasional purchase of a deep discount with an attractive yield. The Fund is constantly selling bonds priced at modest discounts which have achieved our price objective and are yielding a low return. Certain types of investors tend to favor this type of bond, so the Fund can frequently take advantage of this situation. Since the Fund is either buying discounts or premiums at attractive yields, it can afford to sell these issues when they become slight discounts because they have achieved our performance goals. Lower-rated issues remain very expensive when compared to higher-rated securities. The Fund continues to take advantage of this tight spread relationship by favoring higher-rated securities which are traditionally more liquid. This strategy will give the Fund more flexibility to react to a weak market which can experience liquidity constraints. The Fund's Class A shares had a six-month total return on October 31, 1997 of 6.41%, which compares favorably to the Lipper Maryland Municipal Bond average of 5.97%.*** Because the Fund positioned itself defensively in late 1996 when interest rates were low, it was able to take advantage of the declining market that occurred in the spring of 1997 by purchasing issues which were undervalued. Included in this report is a series of detailed statements about your Fund's holdings and its financial condition. We hope they are informative. Please know that we greatly appreciate your continued confidence in the Fund and in The Dreyfus Corporation. Very truly yours, [Richard J. Moynihan signature logo] Richard J. Moynihan Director, Municipal Portfolio Management The Dreyfus Corporation November 18, 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 shares and Class C shares. ** Distribution rate per share is based upon dividends per share paid from net investment income during the period (annualized), 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 shares and Class C shares. Some income may be subject to the Federal Alternative Minimum Tax (AMT) for certain shareholders. ***The Lipper Maryland Municipal Bond average reflects the reinvestment of dividends and capital gains distributions. The Lipper average does not include the effect of applicable sales loads.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES STATEMENT OF INVESTMENTS OCTOBER 31, 1997 (UNAUDITED) Principal Long-Term Municipal Investments-99.7% Amount Value _____________ _____________ Maryland-78.5% Baltimore: 7%, 10/15/2007 (Insured; MBIA)............................................ $ 1,500,000 $ 1,787,580 7.15%, 10/15/2008......................................................... 1,275,000 1,531,313 Mortgage Revenue, Refunding (Tindeco Wharf Project) 6.60%, 12/20/2024 (Collateralized; GNMA)................................ 4,250,000 4,518,727 Port Facilities Revenue (Consolidated Coal Sales) 6.50%, 12/1/2010........ 9,740,000 10,691,014 Baltimore City Housing Corp., MFHR, Refunding 7.25%, 7/1/2023 (Collateralized; FNMA).................................... 3,185,000 3,286,347 Baltimore County, PCR, Refunding (Bethlehem Steel Corp. Project): 7.50%, 6/1/2015........................................................... 5,750,000 6,342,193 7.55%, 6/1/2017........................................................... 2,640,000 2,919,022 Gaithersburg, Hospital Facilities Improvement Revenue, Refunding (Shady Grove) 6.50%, 9/1/2012 (Insured; FSA)............................................ 10,000,000 11,597,100 Howard County: COP 8.15%, 2/15/2020...................................................... 605,000 842,571 EDR, Refunding (M.O.R. XIV Associates Project) 7.75%, 6/1/2012............ 2,500,000 2,589,875 Howard County Metropolitan District 6.125%, 5/15/2023....................... 2,000,000 2,171,220 Kent County, College Revenue, Refunding (Washington College Project) 7.70%, 7/1/2018........................................................... 1,750,000 1,878,047 Maryland Community Development Administration, Department of Housing and Community Development: Housing Revenue 5.75%, 7/1/2039 (Collateralized; GNMA).................. 500,000 500,795 MFHR: 6.50%, 5/15/2013...................................................... 3,000,000 3,175,440 8.875%, 5/15/2021..................................................... 15,000 15,086 7.30%, 5/15/2023...................................................... 2,205,000 2,324,379 6.85%, 5/15/2033...................................................... 5,000,000 5,284,950 6.70%, 5/15/2036 (Insured; FHA)....................................... 7,710,000 8,206,832 Single Family Program: 7.40%, 4/1/2009....................................................... 1,000,000 1,042,840 6.95%, 4/1/2011....................................................... 5,330,000 5,652,572 7.70%, 4/1/2015....................................................... 3,195,000 3,351,523 6.55%, 4/1/2026....................................................... 7,420,000 7,857,632 6.75%, 4/1/2026....................................................... 3,645,000 3,897,817 7.375%, 4/1/2026...................................................... 2,000,000 2,076,520 Zero Coupon, 4/1/2029................................................. 85,075,000 7,143,748 7.625%, 4/1/2029...................................................... 6,870,000 7,137,724 7.45%, 4/1/2032....................................................... 5,910,000 6,250,416 Maryland Economic Development Corp., Revenue (Health and Mental Hygiene Providers Facilities Acquisition Program): 8.375%, 3/1/2013........................................................ 4,300,000 4,681,668 8.75%, 3/1/2017......................................................... 5,050,000 5,496,218 DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997 (UNAUDITED) Principal Long-Term Municipal Investment (continued) Amount Value ______________ ____________ Maryland (continued) Maryland Health and Higher Educational Facilities Authority, Revenue: (Frederick Memorial Hospital) 5%, 7/1/2023 (Insured; FGIC)................ $ 2,870,000 $ 2,757,553 (Refunding-Doctors Community Hospital) 5.50%, 7/1/2024.................... 4,735,000 4,592,950 (Refunding-Howard County General Hospital) 5.50%, 7/1/2025................ 2,000,000 1,967,720 (Refunding-Johns Hopkins) 5%, 7/1/2023.................................... 10,895,000 10,512,586 (Refunding-Memorial Hospital of Cumberland) 6.50%, 7/1/2017 (Insured; MBIA) 2,000,000 2,166,420 (Refunding-Roland Park Project) 7.75%, 7/1/2012........................... 2,230,000 2,344,577 (Refunding-University of Maryland Medical Systems) 5%, 7/1/2020 (Insured; FGIC) 10,825,000 10,426,315 (Union Hospital of Cecil County) 6.70%, 7/1/2009.......................... 2,320,000 2,555,271 (University of Maryland Medical Systems) 7%, 7/1/2022 (Insured; FGIC)..... 4,500,000 5,574,555 Maryland Industrial Development Financing Authority, EDR (Medical Waste Association) 8.75%, 11/15/2010............................. 740,000 750,730 Maryland Local Government Insurance Trust, Capitalization Program, COP 7.125%, 8/1/2009.......................................................... 3,250,000 3,552,153 Maryland Stadium Authority, Sports Facility LR: 7.60%, 12/15/2019......................................................... 5,250,000 5,686,695 5.80%, 3/1/2026 (Insured; AMBAC).......................................... 3,500,000 3,642,940 Montgomery County Housing Opportunities Commission, Revenue: Multi-Family Mortgage: 7.05%, 7/1/2032......................................................... 2,485,000 2,626,372 7.375%, 7/1/2032........................................................ 2,140,000 2,229,366 Single Family Mortgage: 7.375%, 7/1/2017........................................................ 1,805,000 1,889,005 6.625%, 7/1/2026........................................................ 1,015,000 1,077,737 Northeast Waste Disposal Authority, Solid Waste Revenue (Montgomery County Resource Recovery Project): 6%, 7/1/2008............................................................ 2,690,000 2,904,312 6.20%, 7/1/2010......................................................... 12,385,000 13,126,738 6.30%, 7/1/2016......................................................... 12,495,000 13,256,570 Prince Georges County, Refunding Consolidated Public Improvement, 6.75%, 7/1/2010.......................... 1,170,000 1,292,944 Revenue (Dimensions Health Corp.) 5.30%, 7/1/2024......................... 4,000,000 3,937,960 Prince Georges County Housing Authority: Mortgage Revenue: (Langley Gardens Apartment Project) 5.75%, 8/20/2029 (Collateralized; GNMA) 1,000,000 1,010,750 (Refunding-New Keystone Apartment Project) 6.80%, 7/1/2025 (Insured: FHA & MBIA) 4,300,000 4,578,769 (Refunding-Riverview Terrace) 6.70%, 6/20/2020 (Collateralized; GNMA)... 2,000,000 2,160,900 (Refunding-Stevenson Apartments Project) 6.35%, 7/20/2020 (Collateralized; GNMA) 3,000,000 3,149,940 SFMR: 6.60%, 12/1/2025 (Collateralized: FNMA & GNMA).......................... 4,660,000 4,905,768 5.75%, 8/1/2026 (Collateralized: FNMA & GNMA)........................... 5,000,000 5,050,550 DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997 (UNAUDITED) Principal Long-Term Municipal Investment (continued) Amount Value ______________ ____________ U. S. Related-21.2% Guam Airport Authority, Revenue 6.70%, 10/1/2023............................ $ 10,000,000 $ 10,854,600 Puerto Rico Commonwealth: 5.85%, 7/1/2009........................................................... 5,000,000 5,253,300 6.50%, 7/1/2023........................................................... 1,000,000 1,103,250 Puerto Rico Commonwealth Aqueduct and Sewer Authority, Revenue, Refunding 5%, 7/1/2019.............................................................. 15,870,000 15,180,925 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue: 5.40%, 7/1/2006 (Insured; FSA)............................................ 4,000,000 4,212,160 5.50%, 7/1/2026........................................................... 8,500,000 8,526,520 5.50%, 7/1/2026 (Insured; MBIA)........................................... 1,000,000 1,011,990 Refunding 5%, 7/1/2022 (Insured; MBIA).................................... 5,080,000 4,918,761 Puerto Rico Electric Power Authority, Power Revenue: 5.50%, 7/1/2020........................................................... 2,600,000 2,601,222 6.375%, 7/1/2024.......................................................... 8,275,000 9,081,233 5.50%, 7/1/2025 (Insured; MBIA)........................................... 3,000,000 3,025,890 _____________ TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $291,244,621)................... $309,749,166 ============= Short-Term Municipal Investments-.3% Maryland; Northeast Waste Disposal Authority, RRR, Refunding, VRDN (Harford County Resource) 3.50% (Insured; AMBAC) (a) (cost $925,000)...... $ 925,000 $ 925,000 ============= TOTAL INVESTMENTS-100.0% (cost $292,169,621)................................ $310,674,166 =============
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES Summary of Abbreviations AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue COP Certificate of Participation MBIA Municipal Bond Investors Assurance EDR Economic Development Revenue Insurance Corporation FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue FHA Federal Housing Administration PCR Pollution Control Revenue FNMA Federal National Mortgage Association RRR Resources Recovery Revenue FSA Financial Security Assurance SFMR Single Family Mortgage Revenue GNMA Government National Mortgage Association VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited) Fitch (b) or Moody's or Standard & Poor's Percentage of Value _______ ________ __________________ ____________________ AAA Aaa AAA 25.7% AA Aa AA 30.9 A A A 24.2 BBB Baa BBB 10.8 F1+ & F1 MIG1, VMIG1 & P1 SP1 & A1 .3 Not Rated (c) Not Rated (c) Not Rated (c) 8.1 _______ 100.0% =======
Notes to Statement of Investments: (a) 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. (b) Fitch currently provides creditworthiness information for a limited number of investments. (c) 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. (d) At October 31, 1997, the Fund had $100,402,505 (31.8% of net assets) invested in securities whose payment of principal and interest is dependent upon revenues generated from housing projects. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1997 (UNAUDITED) Cost Value _____________ _____________ ASSETS: Investments in securities-See Statement of Investments $292,169,621 $310,674,166 Interest receivable........................ 5,332,371 Receivable for investment securities sold.. 198,389 Receivable for shares of Beneficial Interest subscribed 79,438 Prepaid expenses........................... 4,554 _____________ 316,288,918 _____________ LIABILITIES: Due to The Dreyfus Corporation and affiliates 155,660 Due to Distributor......................... 87,283 Payable for shares of Beneficial Interest redeemed 695,952 Cash overdraft due to Custodian............ 22,952 Accrued expenses........................... 33,397 _____________ 995,244 _____________ NET ASSETS.................................................................. $315,293,674 ============= REPRESENTED BY: Paid-in capital............................ $293,142,074 Accumulated net realized gain (loss) on investments 3,647,055 Accumulated net unrealized appreciation (depreciation) on investments-Note 4...................... 18,504,545 _____________ NET ASSETS.................................................................. $315,293,674 =============
NET ASSET VALUE PER SHARE _____________________________ Class A Class B Class C _____________ _____________ _____________ Net Assets.................................................. $267,314,941 $ 47,251,093 $ 727,640 Shares Outstanding.......................................... 20,297,614 3,587,392 55,210 NET ASSET VALUE PER SHARE................................... $13.17 $13.17 $13.18 ======= ======= ======= SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED) INVESTMENT INCOME INCOME Interest Income............................ $ 9,629,712 EXPENSES: Management fee-Note 3(a)................... $ 873,693 Shareholder servicing costs-Note 3(c)...... 507,705 Distribution fees-Note 3(b)................ 120,222 Professional fees.......................... 25,789 Custodian fees............................. 15,999 Prospectus and shareholders' reports....... 8,505 Registration fees.......................... 4,190 Loan commitment fees-Note 2................ 2,254 Trustees' fees and expenses-Note 3(d)...... 2,041 Miscellaneous.............................. 10,066 ____________ Total Expenses......................... 1,570,464 ____________ INVESTMENT INCOME-NET....................................................... 8,059,248 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4: Net realized gain (loss) on investments.... $ 1,535,218 Net unrealized appreciation (depreciation) on investments 9,826,147 ____________ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 11,361,365 ____________ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $19,420,613 ============ SEE NOTES TO FINANCIAL STATEMENTS. DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES STATEMENT OF CHANGES IN NET ASSETS Six Months Ended October 31, 1997 Year Ended (Unaudited) April 30, 1997 ________________ ______________ OPERATIONS: Investment income-net.................................................... $ 8,059,248 $ 16,635,167 Net realized gain (loss) on investments.................................. 1,535,218 3,361,910 Net unrealized appreciation (depreciation) on investments................ 9,826,147 1,226,032 _____________ _____________ Net Increase (Decrease) in Net Assets Resulting from Operations...... 19,420,613 21,223,109 _____________ _____________ DIVIDENDS TO SHAREHOLDERS FROM: Investment income-net: Class A shares......................................................... (6,954,910) (14,573,442) Class B shares......................................................... (1,091,811) (2,057,437) Class C shares......................................................... (12,527) (4,288) Net realized gain on investments: Class A shares......................................................... ---- (3,655,383) Class B shares......................................................... ---- (581,957) Class C shares......................................................... ---- (584) _____________ _____________ Total Dividends...................................................... (8,059,248) (20,873,091) _____________ _____________ BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from shares sold: Class A shares......................................................... 3,733,979 9,339,601 Class B shares......................................................... 2,960,052 7,677,403 Class C shares......................................................... 499,010 172,500 Dividends reinvested: Class A shares......................................................... 4,379,260 11,942,183 Class B shares......................................................... 697,557 1,775,213 Class C shares......................................................... 7,261 4,210 Cost of shares redeemed: Class A shares......................................................... (17,119,693) (38,844,650) Class B shares......................................................... (3,414,858) (5,310,474) Class C shares......................................................... (16) ---- _____________ _____________ Increase (Decrease) in Net Assets from Beneficial Interest Transactions (8,257,448) (13,244,014) _____________ _____________ Total Increase (Decrease) in Net Assets............................ 3,103,917 (12,893,996) NET ASSETS: Beginning of Period...................................................... 312,189,757 325,083,753 _____________ _____________ End of Period............................................................ $315,293,674 $312,189,757 ============= ============= SEE NOTES TO FINANCIAL STATEMENTS. DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) Shares ___________________________________ Six Months Ended October 31, 1997 Year Ended (Unaudited) April 30, 1997 ________________ ______________ CAPITAL SHARE TRANSACTIONS: Class A ________ Shares sold............................................................ 287,686 728,876 Shares issued for dividends reinvested................................. 335,747 932,487 Shares redeemed........................................................ (1,318,687) (3,035,640) __________ __________ Net Increase (Decrease) in Shares Outstanding (695,254) (1,374,277) ========== ========== Class B ________ Shares sold............................................................ 227,399 601,011 Shares issued for dividends reinvested................................. 53,479 138,596 Shares redeemed........................................................ (261,595) (415,927) __________ __________ Net Increase (Decrease) in Shares Outstanding 19,283 323,680 ========== ========== Class C ________ Shares sold............................................................ 38,727 13,506 Shares issued for dividends reinvested................................. 555 329 Shares redeemed........................................................ (1) --- __________ __________ Net Increase (Decrease) in Shares Outstanding 39,281 13,835 ========== ========== SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND 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 _________________________________________________________________________ Six Months Ended October 31, 1997 Year Ended April 30, ______________________________________________________ PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993 __________ _______ _______ _______ _______ _______ Net asset value, beginning of period.. $12.70 $12.69 $12.54 $12.46 $13.02 $12.43 _______ _______ _______ _______ _______ _______ Investment Operations: Investment income-net................. .34 .68 .67 .70 .73 .76 Net realized and unrealized gain (loss) on investments...................... .47 .18 .23 .08 (.53) .68 _______ _______ _______ _______ _______ _______ Total from Investment Operations...... .81 .86 .90 .78 .20 1.44 _______ _______ _______ _______ _______ _______ Distributions: Dividends from investment income-net.. (.34) (.68) (.67) (.70) (.73) (.76) Dividends from net realized gain on investments - (.17) (.08) - (.03) (.09) _______ _______ _______ _______ _______ _______ Total Distributions................... (.34) (.85) (.75) (.70) (.76) (.85) _______ _______ _______ _______ _______ _______ Net asset value, end of period........ $13.17 $12.70 $12.69 $12.54 $12.46 $13.02 ======= ======= ======= ======= ======= ======= TOTAL INVESTMENT RETURN(1)................ 12.74%(2) 6.91% 7.24% 6.52% 1.33% 11.93% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets .91%(2) .90% .90% .90% .80% .69% Ratio of net investment income to average net assets............... 5.15%(2) 5.29% 5.23% 5.69% 5.51% 5.93% Decrease reflected in above expense ratios due to undertakings by the Manager.. - - - .01% .10% .22% Portfolio Turnover Rate............... 4.76%(3) 43.63% 41.65% 35.39% 10.27% 17.92% Net Assets, end of period (000's Omitted) $267,315 $266,658 $283,878 $301,834 $335,518 $337,307 ____________________________ (1) Exclusive of sales load. (2) Annualized. (3) Not annualized. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND 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 ________________________________________________________________________ Six Months Ended October 31, 1997 Year Ended April 30, _____________________________________________________ PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993(1) __________ _______ _______ _______ _______ _______ Net asset value, beginning of period.. $12.70 $12.69 $12.54 $12.46 $13.02 $12.64 _______ _______ _______ _______ _______ _______ Investment Operations: Investment income-net................. .30 .61 .61 .63 .65 .20 Net realized and unrealized gain (loss) on investments...................... .47 .18 .23 .08 (.53) .38 _______ _______ _______ _______ _______ _______ Total from Investment Operations...... .77 .79 .84 .71 .12 .58 _______ _______ _______ _______ _______ _______ Distributions: Dividends from investment income-net.. (.30) (.61) (.61) (.63) (.65) (.20) Dividends from net realized gain on investments - (.17) (.08) - (.03) - _______ _______ _______ _______ _______ _______ Total Distributions................... (.30) (.78) (.69) (.63) (.68) (.20) _______ _______ _______ _______ _______ _______ Net asset value, end of period........ $13.17 $ 12.70 $12.69 $12.54 $12.46 $13.02 ======= ======= ======= ======= ======= ======= TOTAL INVESTMENT RETURN(2)................ 12.18%(3) 6.34% 6.66% 5.94% .75% 15.74% (3) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets 1.43%(3) 1.43% 1.43% 1.44% 1.37% 1.09% (3) Ratio of net investment income to average net assets............... 4.62%(3) 4.75% 4.68% 5.13% 4.82% 4.55% (3) Decrease reflected in above expense ratios due to undertakings by the Manager.. - - - .01% .08% .12% (3) Portfolio Turnover Rate............... 4.76%(4) 43.63% 41.65% 35.39% 10.27% 17.92% Net Assets, end of period (000's Omitted) $47,251 $45,329 $41,179 $35,090 $30,527 $5,931 ________________________________ (1) From January 15, 1993 (commencement of initial offering) to April 30, 1993. (2) Exclusive of sales load. (3) Annualized. (4) Not annualized. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND 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 _____________________________________________ Six Months Ended October 31, 1997 Year Ended April 30, _____________________ PER SHARE DATA: (Unaudited) 1997 1996(1) __________ ______ ______ Net asset value, beginning of period....................... $12.71 $12.69 $12.67 ______ ______ ______ Investment Operations: Investment income-net...................................... .29 .58 .41 Net realized and unrealized gain (loss) on investments........................................... .47 .19 .10 ______ ______ ______ Total from Investment Operations........................... .76 .77 .51 ______ ______ ______ Distributions: Dividends from investment income-net....................... (.29) (.58) (.41) Dividends from net realized gain on investments............ - (.17) (.08) ______ ______ ______ Total Distributions........................................ (.29) (.75) (.49) ______ ______ ______ Net asset value, end of period............................. $13.18 $12.71 $12.69 ====== ====== ====== TOTAL INVESTMENT RETURN(2)..................................... 11.90%(3) 6.16% 5.57% (3) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets.................... 1.66%(3) 1.64% 1.80% (3) Ratio of net investment income to average net assets.................................... 4.36%(3) 4.47% 4.59% (3) Portfolio Turnover Rate.................................... 4.76%(4) 43.63% 41.65% Net Assets, end of period (000's Omitted).................. $728 $202 $27 __________________________________ (1) From August 15, 1995 (commencement of initial offering) to April 30, 1996. (2) Exclusive of sales load. (3) Annualized. (4) Not annualized. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 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 Maryland Series (the "Fund"). The Fund's investment objective is to maximize current income exempt from Federal and, where applicable, from State income taxes, without undue risk. The Dreyfus Corporation (the "Manager") serves as the Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the Fund's shares. The Fund is authorized to issue an unlimited number of $.001 par value shares in the following classes of shares: Class A, Class B and Class C shares. Class A shares are subject to a sales charge imposed at the time of purchase, Class B shares are subject to a contingent deferred sales charge ("CDSC") imposed on Class B share redemptions made within six years of purchase (five years for shareholders beneficially owning Class B shares on November 30, 1996) and Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. The Trust accounts separately for the assets, liabilities and operations of each fund. Expenses directly attributable to each fund are charged to that fund's operations; expenses which are applicable to all funds are allocated among them on a pro rata basis. The Fund's financial statements are prepared in accordance with generally accepted accounting principles which may require the use of management estimates and assumptions. Actual results could differ from those estimates. (a) Portfolio valuation: Investments in securities (excluding options and financial futures on municipal and U.S. treasury securities) are valued each business day by an independent pricing service ("Service") approved by the Board of Trustees. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Options and financial futures on municipal and U.S. treasury securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Investments not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. (b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Interest income, adjusted for amortization of premiums and original issue discounts on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. The Fund follows an investment policy of investing primarily in municipal obligations of one state. Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the Fund. (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 DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 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 October 31, 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 $2,811 during the period ended October 31, 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 October 31, 1997, the Fund was charged $118,069 and $2,153 for Class B and Class C shares, respectively, pursuant to the Distribution Plan. (c) Under the Shareholder Services Plan, the Fund pays the Distributor at an annual rate of .25 of 1% of the value of the average daily net assets of Class A, Class B and Class C shares for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the Fund and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended October 31, 1997, the Fund was charged $337,381, $59,034 and $718 for Class A, Class B and Class C shares, respectively, pursuant to the Shareholder Services Plan. The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the Fund. During the period ended October 31, 1997, the Fund was charged $72,874 pursuant to the transfer agency agreement. (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. DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOTE 4-SECURITIES TRANSACTIONS: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended October 31, 1997 amounted to $14,678,102 and $23,635,142, respectively. At October 31, 1997, accumulated net unrealized appreciation on investments was $18,504,545, consisting of $19,696,036 gross unrealized appreciation and $1,191,491 gross unrealized depreciation. At October 31, 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, MARYLAND 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. 052/616SA9710 Semi-Annual Report Dreyfus Premier State Municipal Bond Fund Maryland Series October 31, 1997 Registration Mark [Dreyfus lion/2hres logo] -----END PRIVACY-ENHANCED MESSAGE-----