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<SEC-DOCUMENT>0000806176-98-000004.txt : 19980108
<SEC-HEADER>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
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<DESCRIPTION>SEMI-ANNUAL REPORT
<TEXT>
<PAGE>
Semi-Annual Report
- --------------------------------------------------------------------------------
Dreyfus Premier State
Municipal Bond Fund
Minnesota Series
- --------------------------------------------------------------------------------
October 31, 1997
[Lion]
<PAGE>
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:
<TABLE>
<CAPTION>
Annualized
Total Return* Distribution Rate**
----------- -------------------
<S> <C> <C>
Class A Shares................................ 4.91% 5.09%
Class B Shares................................ 4.64% 4.81%
Class C Shares................................ 4.49% 4.53%
</TABLE>
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
<PAGE>
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
<PAGE>
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.
<PAGE>
Dreyfus Premier State Municipal Bond Fund, Minnesota Series
- -------------------------------------------------------------------------------
Statement of Investments October 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments--99.3% Amount Value
- -------------------------------------------------------------------------------- ------------- --------------
<S> <C> <C>
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
</TABLE>
<PAGE>
Dreyfus Premier State Municipal Bond Fund, Minnesota Series
- -------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------------------------------- ------------- --------------
<S> <C> <C>
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
</TABLE>
<PAGE>
Dreyfus Premier State Municipal Bond Fund, Minnesota Series
- -------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------------------------------- ------------- --------------
<S> <C> <C>
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
=============
</TABLE>
<PAGE>
Dreyfus Premier State Municipal Bond Fund, Minnesota Series
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Summary of Abbreviations
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
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
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------------------------------------
Fitch (d) or Moody's or Standard & Poor's Percentage of Value
- ------- -------- ----------------- -------------------
<S> <C> <C> <C>
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%
=======
</TABLE>
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.
<PAGE>
Dreyfus Premier State Municipal Bond Fund, Minnesota Series
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
Cost Value
------------- -------------
<S> <C> <C>
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
=============
</TABLE>
NET ASSET VALUE PER SHARE
-----------------------------
<TABLE>
<CAPTION>
Class A Class B Class C
------------- ------------- -------------
<S> <C> <C> <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
======= ======= =======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier State Municipal Bond Fund, Minnesota Series
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended October 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
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
===========
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier State Municipal Bond Fund, Minnesota Series
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
October 31, 1997 Year Ended
(Unaudited) April 30, 1997
----------------- --------------
<S> <C> <C>
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
============= =============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Premier State Municipal Bond Fund, Minnesota Series
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Shares
---------------------------------
Six Months Ended
October 31, 1997 Year Ended
(Unaudited) April 30, 1997
----------------- --------------
CAPITAL SHARE TRANSACTIONS:
<S> <C> <C>
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)
========== ==========
</TABLE>
See notes to financial statements.
<PAGE>
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.
<TABLE>
<CAPTION>
Class A Shares
------------------------------------------------------------------
Six Months Ended
October 31, 1997 Year Ended April 30,
---------------------------------------------
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
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
<FN>
- -----------------------------
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
</TABLE>
See notes to financial statements.
<PAGE>
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.
<TABLE>
<CAPTION>
Class B Shares
------------------------------------------------------------------
Six Months Ended
October 31, 1997 Year Ended April 30,
---------------------------------------------
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993(1)
---------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
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
<FN>
- ------------------------------
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>
See notes to financial statements.
<PAGE>
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.
<TABLE>
<CAPTION>
Class C Shares
------------------------------------
Six Months Ended Year Ended
October 31, 1997 April 30,
------------------
PER SHARE DATA: (Unaudited) 1997 1996(1)
---------- ------ ------
<S> <C> <C> <C>
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.
</TABLE>
See notes to financial statements.
<PAGE>
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.
<PAGE>
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.
<PAGE>
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).
<PAGE>
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
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----