-----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, T2SP+2ChBydGIiMusaRQiismrxZtryZ62G4xlhO+zxuvMtg5GsZBYqcvBIzNVDaQ xgWjwjxMWma3KfUo9NMj+A== 0000806176-98-000004.txt : 19980108 0000806176-98-000004.hdr.sgml : 19980108 ACCESSION NUMBER: 0000806176-98-000004 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: 98501910 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 Semi-Annual Report - -------------------------------------------------------------------------------- Dreyfus Premier State Municipal Bond Fund Minnesota Series - -------------------------------------------------------------------------------- October 31, 1997 [Lion] Dreyfus Premier State Municipal Bond Fund, Minnesota Series - ------------------------------------------------------------------------------- Letter to Shareholders Dear Shareholder: We are pleased to report the performance for Dreyfus Premier State Municipal Bond Fund--Minnesota Series for the six-month period ended October 31, 1997 as shown in the following table:
Annualized Total Return* Distribution Rate** ----------- ------------------- Class A Shares................................ 4.91% 5.09% Class B Shares................................ 4.64% 4.81% Class C Shares................................ 4.49% 4.53%
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 Since our last letter at the end of April 1997, long-term taxable interest rates have declined dramatically. As measured by the 30-year U.S. Treasury bond, yields ended the period at 6.15%, down from roughly 7.00% just six months earlier. In the municipal market the drop in rates was less pronounced as the Bond Buyer Revenue Bond Index closed the period yielding 5.60% versus 6.01% on April 30. Initially, long interest rates were driven lower by expectations that economic growth would slow during the summer. When the summer slowdown did not materialize, however, disappointed bond market participants pushed yields higher from the beginning of August through mid-September as tight labor markets in the U.S. again became a source of concern. The implications of a tight labor market were overshadowed during October by the development of economic crises in various Asian countries which precipitated a significant correction in the U.S. equity market. The subsequent flight-to-quality rally in Treasuries left taxable yields at their lows for the six months ended October 31, 1997. The underperformance of municipal bonds during the reporting period was driven by a combination of lack of retail demand at lower yields and a large increase in issuance as many bond refundings became economically feasible. This weakening technical dynamic is illustrated by the municipal/Treasury yield ratio (as measured by the Bond Buyer Revenue Bond Index /30-year Treasury yield) cheapening from 86% on April 30, 1997, to 91% six months later. The Portfolio In managing your Fund's assets during a period of such uncertainty with respect to the future direction of long-term interest rates, a decidedly conservative posture was maintained. By holding a core of high coupon bonds which provided the Fund with much of its income stream, we remained committed to providing shareholders with the maximum amount of current tax-free income possible. These large coupon securities also provided stability to the Fund's net asset value throughout a period during which we experienced extreme market volatility. Many of the trades that were executed during the period sought to capitalize on the extremely flat yield curve. Other swaps sought to reposition the portfolio with securities that offered greater potential for price appreciation without extending the duration of the portfolio. Throughout the reporting period, further emphasis was placed on extending the optional redemption characteristics of the holdings in order to improve the liquidity of the portfolio. In conclusion, we will continue to monitor the constantly changing financial and political landscapes and adjust our portfolio strategy accordingly. Very truly yours, /s/ Richard J. Moynihan 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. Dreyfus Premier State Municipal Bond Fund, Minnesota Series - ------------------------------------------------------------------------------- Statement of Investments October 31, 1997 (Unaudited)
Principal Long-Term Municipal Investments--99.3% Amount Value - -------------------------------------------------------------------------------- ------------- -------------- Anoka County: RRR (Northen States Power Co.) 7.15%, 12/1/2008.............................. $ 1,150,000 $ 1,227,844 SWDR (United Power Association Project) 6.95%, 12/1/2008 (Guaranteed; National Rural Utilities Cooperative Finance Corp.) 3,825,000 4,125,186 Brooklyn Park 5.85%, 2/1/2016 (Insured; FSA)................................... 1,425,000 1,489,282 Burnsville, MFHR Refunding (Conventry Court Apartments) 7.50%, 9/1/2027 (Insured; FHA) 2,250,000 2,350,283 Dakota County Housing and Redevelopment Authority, South-Saint Paul Revenue, Refunding (Single Family-GNMA Program) 8.10%, 9/1/2012................................. 125,000 130,539 Duluth Economic Development Authority, Health Care Facilities Revenue (Benedictine Health-Saint Mary's Project) 8.375%, 2/15/2020 (Prerefunded 2/15/2000) (a).............................. 2,500,000 2,777,375 Eagan, MFHR Refunding (Forest Ridge Apartments) 7.50%, 9/1/2017 (Insured; FHA). 1,000,000 1,047,270 Eden Prairie, MFHR, Refunding: (Eden Investments Project) 7.40%, 8/1/2025 (Insured; FHA).................... 500,000 524,895 (Welsh Parkway Apartments) 8%, 7/1/2026 (Insured; FHA)....................... 2,820,000 3,012,550 Edina: Hospital Systems Revenue (Fairview Hospital) 7.125%, 7/1/2006................ 1,000,000 1,068,800 Housing Development Revenue, Refunding (Edina Park Plaza Project) 7.70%, 12/1/2028 (Insured; FHA)............................................ 2,500,000 2,616,625 Harmony, Revenue, MFHR, Refunding (Zedakah Foundation Project ) 5.95 %, 9/1/2020 1,235,000 1,260,132 Hubbard County, SWDR (Potlatch Corp. Project) 7.375%, 8/1/2013............................................................. 1,000,000 1,062,650 Inver Grove Heights Independent School District Number 199 5.75%, 2/1/2017..... 2,225,000 2,298,514 Mahtomedi Independent School District Number 832 Zero Coupon, 2/1/2017 (Insured; MBIA)........................................ 1,275,000 461,448 Minneapolis: Zero Coupon, 12/1/2014....................................................... 1,825,000 750,477 Home Ownership Program 7.10%, 6/1/2021....................................... 695,000 731,647 HR (Lifespan Inc.--Minneapolis Children's Medical Center Project) 7%, 12/1/2020 (Prerefunded 6/1/2001) (a)................................... 5,650,000 6,267,319 MFHR Refunding (Churchill Apartments Project) 7.05%, 10/1/2022 (Insured; FSA) 4,000,000 4,270,720 MFMR (Seward Towers Project) 7.375%, 12/20/2030 (Collateralized; GNMA)....... 2,350,000 2,484,138 Refunding (Sports Arena Project): 5.125%, 10/1/2020.......................................................... 1,000,000 995,280 5.20%, 10/1/2024........................................................... 3,850,000 3,862,128 Minneapolis Community Development Agency, Ltd. Tax Support Development Revenue: 8.375%, 6/1/2007........................................................... 2,500,000 2,606,250 8%, 12/1/2009.............................................................. 300,000 317,673 7.75%, 12/1/2019........................................................... 2,805,000 3,102,330 7.40%, 12/1/2021........................................................... 2,000,000 2,123,140
Dreyfus Premier State Municipal Bond Fund, Minnesota Series - ------------------------------------------------------------------------------- Statement of Investments (continued) October 31, 1997 (Unaudited)
Principal Long-Term Municipal Investments (continued) Amount Value - -------------------------------------------------------------------------------- ------------- -------------- Minneapolis-Saint Paul Housing and Redevelopment Authority, Health Care Systems Revenue: 8%, 8/15/2014 (Prerefunded 8/15/2000) (a).................................. $ 3,000,000 $ 3,359,100 (Group Health Plan Inc., Project) 6.75%, 12/1/2013......................... 2,750,000 3,018,043 Minneapolis-Saint Paul Housing Finance Board, SFMR: 8.875%, 11/1/2018 (Collateralized; GNMA)..................................... 105,000 107,819 8.30%, 8/1/2021 (Collateralized; GNMA)....................................... 330,000 340,860 7.30%, 8/1/2031 (Collateralized; GNMA)....................................... 5,870,000 6,204,003 Minneapolis-Saint Paul Metropolitan Apartments Community 7.80%, 1/1/2014....... 3,000,000 3,185,370 Minneapolis Special School District Number 001, COP: 5.375%, 1/1/2014 (Insured; MBIA)............................................. 1,000,000 1,015,570 5.90%, 2/1/2017 (Insured; MBIA).............................................. 4,400,000 4,611,288 5.65%, 2/1/2018 (Insured; MBIA).............................................. 1,300,000 1,338,181 State of Minnesota (Duluth Airport) 6.25%, 8/1/2014............................ 2,500,000 2,703,525 Minnesota Agricultural and Economic Development Board, Minnesota Small Business Development Loan Revenue: 8.125%, Lot 2, 8/1/2009.................................................... 500,000 512,515 8.20%, 8/1/2009............................................................ 655,000 681,947 8.375%, 8/1/2010........................................................... 1,385,000 1,437,672 Minnesota Higher Education Facilities Authority, College and University Revenue (University of Saint Thomas): 5.35%, 4/1/2017............................................................ 1,000,000 1,005,830 5.40%, 4/1/2022............................................................ 2,200,000 2,212,804 Minnesota Housing Finance Agency, Revenue: Rental Housing 6.10%, 8/1/2009............................................... 2,065,000 2,089,181 Single Family Mortgage: 7.35%, 7/1/2016............................................................ 1,355,000 1,420,162 7.30%, 1/1/2017............................................................ 735,000 769,890 7.90%, 7/1/2019............................................................ 1,525,000 1,583,758 7.45%, 7/1/2022 (Insured; FHA)............................................. 2,825,000 2,981,364 7.95%, 7/1/2022............................................................ 1,530,000 1,620,331 6.95%, 7/1/2026............................................................ 2,820,000 3,014,862 Minnesota Public Facilities Authority, Water Pollution Control Revenue: 7.10%, 3/1/2012 (Prerefunded 3/1/2000) (a)................................... 2,350,000 2,552,053 6.95%, 3/1/2013 (Prerefunded 3/1/2001) (a)................................... 3,000,000 3,312,570 6.50%, 3/1/2014 (Prerefunded 3/1/2001) (a)................................... 5,200,000 5,748,184 5.00%, 3/1/2018.............................................................. 1,720,000 1,687,595 New Prague Independent School District 5%, 2/1/2016 (Insured; MBIA)............ 2,000,000 1,955,360 Northern Municipal Power Agency, Electric System Revenue, Refunding: 7.25%, 1/1/2016.............................................................. 3,500,000 3,692,885 5.30%, 1/1/2021 (Insured; FSA)............................................... 1,000,000 998,600
Dreyfus Premier State Municipal Bond Fund, Minnesota Series - ------------------------------------------------------------------------------- Statement of Investments (continued) October 31, 1997 (Unaudited)
Long-Term Municipal Investments (continued) Amount Value - -------------------------------------------------------------------------------- ------------- -------------- North Saint Paul Maplewood Independent School District, Refunding 5.125%, 2/1/2025 $ 2,500,000 $ 2,461,900 City of Red Wing, Health Care Facilities Revenue, Refunding (River Region Obligation Group) 6.50%, 9/1/2022.............................. 3,445,000 3,645,809 Rosemount Independent School District Number 196, Zero Coupon, 4/1/2014 (Insured; MBIA)........................................ 3,000,000 1,267,020 Saint Cloud, Hospital Facilities Revenue (The Saint Cloud Hospital) 7%, 7/1/2020 (Insured; AMBAC) (Prerefunded 7/1/2001) (a)..................... 1,000,000 1,111,150 Saint Paul Housing and Redevelopment Authority, SFMR, Refunding 6.90%, 12/1/2021 (Insured; FNMA)................................... 2,550,000 2,687,292 Sartell, PCR, Refunding (Champion International Corp. Project) 6.95%, 10/1/2012 5,000,000 5,464,250 Seaway Port Authority of Duluth, Industrial Development Dock and Wharf Revenues, Refunding (Cargill Inc. Project) 6.80%, 5/1/2012.............................................................. 3,000,000 3,305,400 Southern Minnesota Municipal Power Agency, Power Supply System Revenue: Zero Coupon, 1/1/2025 (Insured; MBIA)........................................ 5,255,000 1,209,806 Zero Coupon, 1/1/2026 (Insured; MBIA)........................................ 15,530,000 3,387,248 Refunding Zero Coupon, 1/1/2027 (Insured; MBIA).............................. 4,800,000 991,248 University of Minnesota, College and University Revenue, Refunding, 5.50%, 7/1/2021 5,925,000 6,173,198 Western Minnesota Municipal Power Agency, Electric Power and Light Revenue Refunding 5.50%, 1/1/2012 (Insured; AMBAC)................................... 1,000,000 1,035,360 White Bear Lake Independent School District Number 624 5.75%, 2/1/2017......... 1,265,000 1,313,651 ------------- TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $142,277,170).......................................................... $152,179,149 ============= Short-Term Municipal Investments--.7% - ------------------------------------------------------------------------------- Cloquet, PCR, Refunding VRDN (Potlatch Corporation Project) 3.60% (LOC; Credit Suisse) (b,c) (cost $1,100,000)............................................................ $ 1,100,000 $ 1,100,000 ============= TOTAL INVESTMENTS--100.0% (cost $143,377,170).......................................................... $153,279,149 =============
Dreyfus Premier State Municipal Bond Fund, Minnesota Series - ------------------------------------------------------------------------------
Summary of Abbreviations - ------------------------------------------------------------------------------------------------------ AMBAC American Municipal Bond Assurance Corporation MBIA Multi-Family Housing Revenue COP Certificates of Participation Insurance Corporation FHA Federal Housing Administration MFHR Multi-Family Housing Revenue FNMA Federal National Mortgage Association MFMR Multi-Family Mortgage Revenue FSA Financial Security Assurance PCR Pollution Control Revenue GNMA Government National Mortgage Association RRR Resources Recovery Revenue HR Hospital Revenue SFMR Single Family Mortgage Revenue LOC Letters of Credit SWDR Solid Waste Disposal Revenue VDRN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited) - ----------------------------------------------------------------------------------------------------------- Fitch (d) or Moody's or Standard & Poor's Percentage of Value - ------- -------- ----------------- ------------------- AAA Aaa AAA 53.3% AA Aa AA 24.3 A A A 13.2 BBB Baa BBB 5.8 F1 MIG1 SP1 .8 Not Rated (e) Not Rated (e) Not Rated (e) 2.6 ------- 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) Security payable on demand. The interest rate, which is subject to change, is based upon prime rates or an index of market interest rates. (c) Secured by letters of credit. (d) Fitch currently provides creditworthiness information for a limited number of investments. (e) Securities which, while not rated by Fitch, Moody's and Standard & Poor's have been determined by the Manager to be of comparable quality to those rated securities in which the Fund may invest. See notes to financial statements. Dreyfus Premier State Municipal Bond Fund, Minnesota Series - ------------------------------------------------------------------------------ Statement of Assets and Liabilities October 31, 1997 (Unaudited)
Cost Value ------------- ------------- ASSETS: Investments in securities--See Statement of Investments $143,377,170 $153,279,149 Cash............................................. 193,628 Interest receivable.............................. 2,634,568 Receivable for investment securities sold........ 942,415 Receivable for shares of Beneficial Interest subscribed 21,000 Prepaid expenses................................. 2,790 ------------- 157,073,550 ------------- LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 73,451 Due to Distributor............................... 45,618 Payable for shares of Beneficial Interest redeemed 83,074 Accrued expenses................................. 17,609 ------------- 219,752 ------------- NET ASSETS..................................................................... $156,853,798 ============= REPRESENTED BY: Paid-in capital.................................. $147,544,160 Accumulated net realized gain (loss) on investments (592,341) Accumulated gross unrealized appreciation on investments 9,901,979 ------------- NET ASSETS..................................................................... $156,853,798 =============
NET ASSET VALUE PER SHARE -----------------------------
Class A Class B Class C ------------- ------------- ------------- Net Assets..................................................... $128,373,989 $27,747,132 $732,677 Shares Outstanding............................................. 8,361,418 1,804,293 47,651 NET ASSET VALUE PER SHARE...................................... $15.35 $15.38 $15.38 ======= ======= =======
See notes to financial statements. Dreyfus Premier State Municipal Bond Fund, Minnesota Series - ------------------------------------------------------------------------------- Statement of Operations Six Months Ended October 31, 1997 (Unaudited)
INVESTMENT INCOME INCOME Interest Income............................ $4,958,041 EXPENSES: Management fee--Note 3(a)................... $ 435,131 Shareholder servicing costs--Note 3(c)...... 246,062 Distribution fees--Note 3(b)................ 70,422 Professional fees.......................... 12,935 Custodian fees............................. 8,246 Prospectus and shareholders' reports....... 6,218 Registration fees.......................... 2,059 Trustees' fees and expenses--Note 3(d)...... 1,983 Loan commitment fees--Note 2................ 687 Miscellaneous.............................. 5,373 ----------- Total Expenses........................... 789,116 ----------- INVESTMENT INCOME--NET.................................................... 4,168,925 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4: Net realized gain (loss) on investments.... $ 49,149 Net unrealized appreciation (depreciation) on investments........................... 3,223,451 ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... 3,272,600 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $7,441,525 ===========
See notes to financial statements. Dreyfus Premier State Municipal Bond Fund, Minnesota Series - ------------------------------------------------------------------------------- Statement of Changes in Net Assets
Six Months Ended October 31, 1997 Year Ended (Unaudited) April 30, 1997 ----------------- -------------- OPERATIONS: Investment income--net.................................................. $ 4,168,925 $ 8,482,213 Net realized gain (loss) on investments................................ 49,149 (646,676) Net unrealized appreciation (depreciation) on investments.............. 3,223,451 1,631,040 ------------- ------------- Net Increase (Decrease) in Net Assets Resulting from Operations.. 7,441,525 9,466,577 ------------- ------------- DIVIDENDS TO SHAREHOLDERS FROM: Investment income--net Class A shares...................................................... (3,495,115) (7,188,410) Class B shares...................................................... (662,583) (1,273,471) Class C shares...................................................... (11,227) (20,332) Net realized gain on investments: Class A shares...................................................... -- (301,648) Class B shares...................................................... -- (60,551) Class C shares...................................................... -- (1,243) ------------- ------------- Total Dividends.................................................. (4,168,925) (8,845,655) ------------- ------------- BENEFICIALINTEREST TRANSACTIONS: Net proceeds from shares sold: Class A shares...................................................... 3,170,210 7,615,027 Class B shares...................................................... 1,949,767 2,280,709 Class C shares...................................................... 495,137 232,695 Dividends reinvested: Class A shares...................................................... 2,156,275 4,853,932 Class B shares...................................................... 411,180 874,682 Class C shares...................................................... 6,620 18,406 Cost of shares redeemed: Class A shares...................................................... (8,686,368) (22,037,210) Class B shares...................................................... (1,178,479) (2,851,658) Class C shares...................................................... (85,251) (312,743) ------------- ------------- Increase (Decrease) in Net Assets from Beneficial Interest Transactions (1,760,909) (9,326,160) ------------- ------------- Total Increase (Decrease) in Net Assets....................... 1,511,691 (8,705,238) NET ASSETS: Beginning of Period.................................................... 155,342,107 164,047,345 ------------- ------------- End of Period.......................................................... $156,853,798 $155,342,107 ============= =============
See notes to financial statements. Dreyfus Premier State Municipal Bond Fund, Minnesota 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................................................................ 208,548 503,203 Shares issued for dividends reinvested..................................... 141,146 321,163 Shares redeemed............................................................ (570,387) (1,455,677) ---------- ---------- Net Increase (Decrease) in Shares Outstanding... (220,693) (631,311) ========== ========== Class B -------- Shares sold................................................................ 127,762 150,960 Shares issued for dividends reinvested..................................... 26,875 57,774 Shares redeemed............................................................ (77,104) (188,834) ---------- ---------- Net Increase (Decrease) in Shares Outstanding... 77,533 19,900 ========== ========== Class C -------- Shares sold................................................................ 32,401 15,195 Shares issued for dividends reinvested..................................... 432 1,215 Shares redeemed............................................................ (5,577) (20,849) ---------- ---------- Net Increase (Decrease) in Shares Outstanding... 27,256 (4,439) ========== ==========
See notes to financial statements. Dreyfus Premier State Municipal Bond Fund, Minnesota 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....... $15.03 $14.98 $14.90 $14.72 $15.31 $14.63 ------- ------- ------- ------- ------- ------- Investment Operations: Investment income--net...................... .41 .82 .82 .83 .87 .92 Net realized and unrealized gain (loss) on investments.......................... .32 .09 .08 .18 (.53) .77 ------- ------- ------- ------- ------- ------- Total from Investment Operations........... .73 .91 .90 1.01 .34 1.69 ------- ------- ------- ------- ------- ------- Distributions: Dividends from investment income--net....... (.41) (.82) (.82) (.83) (.87) (.92) Dividends from net realized gain on investments -- (.04) -- -- (.06) (.09) ------- ------- ------- ------- ------- ------- Total Distributions........................ (.41) (.86) (.82) (.83) (.93) (1.01) ------- ------- ------- ------- ------- ------- Net asset value, end of period............. $15.35 $15.03 $14.98 $14.90 $14.72 $15.31 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- TOTAL INVESTMENT RETURN(1).................... 9.74%(2) 6.16% 6.11% 7.14% 2.08% 11.96% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets.... .91%(2) .91% .90% .90% .80% .69% Ratio of net investment income to average net assets................... 5.36%(2) 5.42% 5.41% 5.68% 5.61% 6.13% Decrease reflected in above expense ratios due to undertakings by the Manager...... -- -- -- .01% .11% .24% Portfolio Turnover Rate.................... 9.35%(3) 25.82% 35.47% 51.95% 12.21% 24.22% Net Assets, end of period (000's omitted).. $128,374 $129,031 $138,058 $145,444 $155,657 $148,765 - ----------------------------- (1) Exclusive of sales load. (2) Annualized. (3) Not annualized.
See notes to financial statements. Dreyfus Premier State Municipal Bond Fund, Minnesota 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....... $15.06 $15.01 $14.92 $14.74 $15.32 $14.86 ------- ------- ------- ------- ------- ------- Investment Operations: Investment income--net...................... .37 .74 .74 .75 .78 .24 Net realized and unrealized gain (loss) on investments.......................... .32 .09 .09 .18 (.52) .46 ------- ------- ------- ------- ------- ------- Total from Investment Operations........... .69 .83 .83 .93 .26 .70 ------- ------- ------- ------- ------- ------- Distributions: Dividends from investment income--net....... (.37) (.74) (.74) (.75) (.78) (.24) Dividends from net realized gain on investments -- (.04) -- -- (.06) -- ------- ------- ------- ------- ------- ------- Total Distributions........................ (.37) (.78) (.74) (.75) (.84) (.24) ------- ------- ------- ------- ------- ------- Net asset value, end of period............. $15.38 $15.06 $15.01 $14.92 $14.74 $15.32 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- TOTAL INVESTMENT RETURN(2).................... 9.20%(3) 5.60% 5.62% 6.57% 1.55% 16.32%(3) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets.... 1.42%(3) 1.44% 1.43% 1.44% 1.38% 1.16%(3) Ratio of net investment income to average net assets................... 4.84%(3) 4.90% 4.87% 5.13% 4.91% 4.83%(3) Decrease reflected in above expense ratios due to undertakings by the Manager...... -- -- -- .01% .09% .14%(3) Portfolio Turnover Rate.................... 9.35%(4) 25.82% 35.47% 51.95% 12.21% 23.42% Net Assets, end of period (000's omitted).. $27,747 $26,004 $25,617 $23,217 $21,004 $4,633 - ------------------------------ (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, Minnesota 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 Year Ended October 31, 1997 April 30, ------------------ PER SHARE DATA: (Unaudited) 1997 1996(1) ---------- ------ ------ Net asset value, beginning of period...................................... $15.06 $15.01 $14.96 ------ ------ ------ Investment Operations: Investment income--net.................................................... .35 .70 .50 Net realized and unrealized gain (loss) on investments.................... .32 .09 .05 ------ ------ ------ Total from Investment Operations.......................................... .67 .79 .55 ------ ------ ------ Distributions: Dividends from investment income--net...................................... (.35) (.70) (.50) Dividends from net realized gain on investments........................... -- (.04) -- ------ ------ ------ Total Distributions....................................................... (.35) (.74) (.50) ------ ------ ------ Net asset value, end of period............................................ $15.38 $15.06 $15.01 ====== ====== ====== TOTAL INVESTMENT RETURN(2)................................................... 8.91%(3) 5.34% 5.15%(3) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets................................... 1.67%(3) 1.67% 1.42%(3) Ratio of net investment income to average net assets...................... 4.42%(3) 4.62% 4.00%(3) Portfolio Turnover Rate................................................... 9.35%(4) 25.82% 35.47% Net Assets, end of period (000's Omitted)................................. $733 $307 $373 - ------------------------ (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, Minnesota 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 Minnesota 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. Dreyfus Premier State Municipal Bond Fund, Minnesota Series - ------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) (c) Dividends to shareholders: It is the policy of the Fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gain are normally declared and paid annually, but the Fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code. To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the Fund not to distribute such gain. (d) Federal income taxes: It is the policy of the Fund to continue to qualify as a regulated investment company, which can distribute tax exempt dividends, by complying with the applicable provisions of the Internal Revenue Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all Federal income and excise taxes. The Fund has an unused capital loss carryover of approximately $601,000 available for Federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to April 30, 1997. The carryover does not include net realized securities losses from November 1, 1996 through April 30, 1997 which are treated, for Federal income tax purposes, as arising in fiscal 1998. If not applied, the carryover expires in fiscal 2005. NOTE 2--Bank Line of Credit: The Fund participates with other Dreyfus-managed funds in a $600 million redemption credit facility ("Facility") to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the Fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the Fund at rates based on prevailing market rates in effect at the time of borrowings. 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 $376 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 $68,516 and $1,906 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 $162,893, $34,258 and $635 for Class A, Class B and Class C shares, respectively, pursuant to the Shareholder Services Plan. Dreyfus Premier State Municipal Bond Fund, Minnesota Series - ------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) 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 $35,689 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. NOTE 4--Securities Transactions: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period October 31, 1997 amounted to $14,278,949 and $15,086,808, respectively. 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, Minnesota 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. 055/618SA9710 -----END PRIVACY-ENHANCED MESSAGE-----