-----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, WWbwwBOdnS+x+KmGeQp10sba7yLDNJYB3z3PFnkZv/BXB+fXch2VdlVzBC6dbJPR NpR5g85mZLyYi/1Ufh6xvA== 0000806176-99-000001.txt : 19990112 0000806176-99-000001.hdr.sgml : 19990112 ACCESSION NUMBER: 0000806176-99-000001 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981031 FILED AS OF DATE: 19990111 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: 99503831 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 DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- LETTER TO SHAREHOLDERS Dear Shareholder: We are pleased to report the performance for the Dreyfus Premier State Municipal Bond Fund--Maryland Series for the six-month reporting period ended October 31, 1998, as shown in the following table: ANNUALIZED TOTAL RETURN* DISTRIBUTION RATE** ___________ _______________ Class A shares . . . . . . . . . . . . . . . . . . . . 4.12% 4.77% Class B shares . . . . . . . . . . . . . . . . . . . . 3.84% 4.46% Class C shares . . . . . . . . . . . . . . . . . . . . 3.71% 4.21%
ECONOMY REVIEW In the face of soaring consumer confidence and strong first-quarter economic growth, the Federal Reserve Board (the "Fed") earlier this year refrained from increasing interest rates, partially to avoid further roiling international financial markets. In addition, the Fed evidently felt then that the economic slowdown overseas might curtail the U.S. economy to some degree, which would alleviate the need for monetary restraint. The Fed's expectations have proven to be true, and its judgment accurate. The U.S. balance of trade has worsened and there have been increasing signs of a slowdown in export-related industries. On September 29, concerns about a weakening U.S. economy caused the Federal Open Market Committee (the F.O.M.C. is the policy-making arm of the Fed) to pare the Federal Funds target rate by 25 basis points, the first reduction since January 1996. (The Federal Funds rate is the rate of interest that banks charge each other for overnight loans.) At that point, Fed Chairman Alan Greenspan described the economic outlook for the United States as having "weakened measurably." Two weeks later, on October 15, the F.O.M.C. again reduced the target rate by an additional 25 basis points, putting the Federal Funds rate at 5.0%. Despite the concerns of the Fed regarding an economic slowdown, aggregate economic statistics showed a growing and resilient economy during the reporting period. Low unemployment and negligible inflation, combined with car makers rebuilding inventory after a long strike and rising consumer incomes, resulted in solid economic growth (3.3% ) for the third quarter of this year. While a significant portion of this gain was due to inventory replenishment after the automobile strike, the overall results were still an improvement over second-quarter economic growth of 1.8%. Inflation as measured by the Consumer Price Index remained at levels not witnessed since 1963. The Fed' s responsibility is to enact monetary policy that is anticipatory of future economic conditions. The U.S. trade deficit has continued to widen because of the global economic slide. Slumping exports have weakened manufacturing activity since midyear, and there is concern that this slackness could become more pronounced and widen into other sectors of the economy. While the increase in imports also restrains domestic production, it has helped contain inflation as well, since domestic producers are reluctant to raise prices. This provides additional flexibility for the Fed to lower interest rates still further. So far, economic problems overseas have not caused any measurable reaction in the U.S. labor market. Only the growth rate in new jobs has eased from its torrid pace earlier in the year. The unemployment rate has remained near 30-year lows and worker inflation-adjusted take-home pay has been rising. The condition of the labor market is a key determinant of consumer confidence which, of course, relates directly to consumer spending, a force that accounts for two thirds of all economic activity. Business spending has shown signs of weakness, so the role of the consumer will be of even greater importance in the future. It is significant that measures of consumer confidence have receded from earlier record high levels, largely because of concerns about the volatility of financial markets. MARKET ENVIRONMENT The supply of new issues in Maryland has been rather low and sporadic over the last six months. The Fund has not been able to make many purchases of new-issue debt at attractive levels because of this light supply. Demand has continued to remain strong over the last six months while supply is not expected to increase until early December. The Fund intends to take advantage of this heavy supply by purchasing the new issues when they are sold. Municipals are still considered to be a very good investment when compared to U. S. Treasury bonds. A twenty-year insured AAA rated tax-exempt municipal bond currently yields over 95% of the taxable thirty-year U. S. Treasury bond. Over the last year, municipals have averaged 89% of Treasuries. PORTFOLIO OVERVIEW In general, the Fund has wanted to maintain an aggressive investment posture by purchasing discounted securities, but has had only limited success executing this strategy due to a low supply of new issues. The supply of Maryland new issues is expected to dramatically increase in early December. The Fund intends to take advantage of this new supply by purchasing these issues in the primary market. Because demand has outstripped supply over the last few months, the Fund has slowly sold modest discounts that had achieved our price objectives and were yielding a low return. Certain types of investors tend to favor this type of bond, so the Fund can frequently take advantage of this situation. The Fund was able to purchase some modest premiums at attractive yields in the secondary market. Our intention is to hold these investments until we are able to purchase discounts in the primary market. After the discounts have been purchased the Fund will selectively sell modest premiums which have achieved our performance goals. Lower rated issues have remained fairly expensive when compared to insured securities. The Fund continues to take advantage of this tight spread relationship by favoring higher rated securities, which are more liquid. This strategy will continue to give the Fund more flexibility to react to a weak market, which can experience liquidity constraints. The Fund's Class A shares had a six-month total return as of October 31, 1998, of 4.12% ,* compared to the benchmark Lipper Maryland Municipal Bond average of 4.55%. Because the Fund was unable to purchase a significant amount of discounts over the last six months while interest rates were falling, it was not able to take full advantage of an improving market that occurred through September. The Fund is anticipating a strong supply of Maryland issues in December and is positioning the Fund to take advantage of this opportunity in late 1998. Included in the report is a series of detailed statements about your Fund's holdings and its financial condition. We hope you find them informative. Please know that we appreciate greatly your continued confidence in the Fund and in The Dreyfus Corporation. Very truly yours, [Richard J. Moynihan signature logo] Richard J. Moynihan Director, Municipal Portfolio Management The Dreyfus Corporation November 16, 1998 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 applicable contingent deferred sales charge imposed on redemptions in the case of Class B and Class C shares. Income may be subject to state and local income taxes for non-Maryland residents. **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 per share at the end of the period in the case of Class A shares, or the net asset value per share in the case of Class B and Class C shares. Some income may be subject to the Federal Alternative Minimum Tax (AMT) for certain shareholders. DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS OCTOBER 31, 1998 (UNAUDITED) Principal Municipal Bonds--97.7% Amount Value - ------------------------------------------------------- _____________ _____________ MARYLAND--86.9% Baltimore: 7%, 10/15/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500,000 $ 1,822,740 7.15%, 10/15/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,275,000 1,563,787 (Tindeco Wharf Project) 6.60%, 12/20/2024 (Collateralized; GNMA) . . . . . . . . . . 4,250,000 4,557,147 Port Facilities Revenue (Consolidated Coal Sales) 6.50%, 12/1/2010 . . . . . . . . . 9,740,000 10,799,030 Baltimore City Housing Corp., MFHR, Refunding 7.25%, 7/1/2023 (Collateralized; FNMA) . . . . . . . . . . . . . . . . . . . . . . . 3,150,000 3,252,879 Baltimore County: Mortgage Revenue, Refunding: Zero coupon, 9/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,280,000 554,222 (Burnam Woods) 5.20%, 9/1/2018 (Insured; FHA) . . . . . . . . . . . . . . . . . 1,000,000 1,018,180 Nursing Facility Mortgage Revenue (Eastpoint Rehabilitation & Nursing Centers): 6.75%, 4/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,014,710 6.75%, 4/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,508,475 PCR, Refunding (Bethlehem Steel Corp. Project): 7.50%, 6/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,785,000 6,339,492 7.55%, 6/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,690,000 2,950,123 Frederick County, Retirement Community Revenue, (Buckinghams Choice, Inc. Facility): 5.90%, 1/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,022,150 6%, 1/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 769,440 Gaithersburg, Hospital Facilities Improvement Revenue, Refunding (Shady Grove) 6.50%, 9/1/2012 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 12,129,300 Howard County, COP 8.15%, 2/15/2020 . . . . . . . . . . . . . . . . . . . . . . . . . . 605,000 860,492 Maryland Community Development Administration, Department of Housing and Community Development: Housing Revenue: 5.65%, 7/1/2039 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,405,000 5,592,878 5.75%, 7/1/2039 (Collateralized; GNMA) . . . . . . . . . . . . . . . . . . . 1,220,000 1,272,289 Multi-Family Development (Auburn Manor Project) 5.30%, 10/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,016,760 MFHR: 6.50%, 5/15/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,229,950 7.30%, 5/15/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,205,000 2,337,917 6.85%, 5/15/2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,326,850 6.70%, 5/15/2036 (Insured; FHA) . . . . . . . . . . . . . . . . . . . . . . . 7,710,000 8,422,867 Single Family Program: 7.40%, 4/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,028,000 6.95%, 4/1/2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,330,000 5,676,770 7.70%, 4/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,195,000 3,307,592 6.55%, 4/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,420,000 8,012,190 6.75%, 4/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,895,000 4,201,186 7.375%, 4/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,053,520 Zero Coupon, 4/1/2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,075,000 7,712,049 7.625%, 4/1/2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,870,000 7,054,185 7.45%, 4/1/2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,910,000 6,226,953 DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED) Principal Municipal Bonds (continued) Amount Value - ------------------------------------------------------- _____________ _____________ MARYLAND (CONTINUED) Maryland Economic Development Corp., Revenue: (Health and Mental Hygiene Providers Facilities Acquisition Program): 8.375%, 3/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,180,000 $ 4,605,608 8.75%, 3/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,935,000 5,234,653 Health Care Facility (Crescent Cities Project) 5.40%, 12/20/2027 . . . . . . . . . . 1,345,000 1,386,628 Maryland Health and Higher Educational Facilities Authority, Revenue: (Calvert Memorial Hospital) 5%, 7/1/2028 . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,966,440 (College of Notre Dame) 4.65%, 10/1/2023 . . . . . . . . . . . . . . . . . . . . . 1,400,000 1,329,622 (Johns Hopkins Medicine -- Howard County General Hospital Acquisition) 5%, 7/1/2029 . 4,750,000 4,716,513 (Memorial Hospital at Easton) 4.70%, 7/1/2019 (Insured; MBIA)O . . . . . . . . . . 5,550,000 5,353,974 (Refunding -- Doctors Community Hospital) 5.50%, 7/1/2024 . . . . . . . . . . . . . 9,890,000 9,965,659 (Refunding -- Helix Health Issue) 5%, 7/1/2027 (Insured; AMBAC) . . . . . . . . . . 5,500,000 5,462,325 (Refunding -- Howard County General Hospital) 5.50%, 7/1/2025 . . . . . . . . . . . 2,105,000 2,207,619 (Refunding -- John Hopkins) 5%, 7/1/2023 . . . . . . . . . . . . . . . . . . . . . . 6,845,000 6,716,109 (Refunding -- Roland Park Project) 7.75%, 7/1/2012 . . . . . . . . . . . . . . . . . 2,230,000 2,308,206 (Refunding -- Upper Chesapeake Hospitals): 5.50%, 1/1/2020 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,089,360 5.375%, 1/1/2028 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,536,495 (Union Hospital of Cecil County): 6.70%, 7/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,320,000 2,653,198 4.75%, 7/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,840,000 1,814,074 5.10%, 7/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,451,000 (University of Maryland Medical Systems) 7%, 7/1/2022 (Insured; FGIC) . . . . . . . 4,500,000 5,788,665 Maryland Industrial Development Financing Authority, EDR (Medical Waste Association) 8.75%, 11/15/2010 . . . . . . . . . . . . . . . . . . . 710,000 720,678 Maryland Local Government Insurance Trust, Capitalization Program, COP 7.125%, 8/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,250,000 3,501,225 Maryland Stadium Authority, Sports Facility LR: 7.60%, 12/15/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,250,000 5,580,173 5.80%, 3/1/2026 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,769,570 Montgomery County Housing Opportunities Commission, Revenue: Multi-Family Mortgage: 7.05%, 7/1/2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,485,000 2,632,286 7.375%, 7/1/2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,140,000 2,236,557 Single Family Mortgage: 7.375%, 7/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,760,000 1,817,552 6.625%, 7/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,015,000 1,099,184 Zero Coupon, 7/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,975,000 8,295,939 Northeast Waste Disposal Authority, Solid Waste Revenue (Montgomery County Resource Recovery Project): 6%, 7/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,690,000 3,015,678 6.20%, 7/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,130,000 14,120,265 6.30%, 7/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,205,000 15,254,607 DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED) Principal Municipal Bonds (continued) Amount Value - ------------------------------------------------------- _____________ _____________ MARYLAND (CONTINUED) Prince Georges County, Refunding: Consolidated Public Improvement: 6.75%, 7/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,170,000 $ 1,277,921 4.75%, 4/15/2017 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . 2,800,000 2,767,716 Revenue (Dimensions Health Corp.) 5.30%, 7/1/2024 . . . . . . . . . . . . . . . . . 5,000,000 4,954,600 Prince Georges County Housing Authority: Mortgage Revenue: (Langley Gardens Apartment Project) 5.75%, 8/20/2029 (Collateralized; GNMA) . . 1,000,000 1,046,190 (Refunding -- New Keystone Apartment Project) 6.80%, 7/1/2025 (Insured: FHA & MBIA) 4,300,000 4,601,344 (Refunding -- Riverview Terrace) 6.70%, 6/20/2020 (Collateralized; GNMA) . . . . 2,000,000 2,182,760 (Refunding -- Stevenson Apartments Project) 6.35%, 7/20/2020 (Collateralized; GNMA) . . . . . . . . . . . . . . . . . . 3,000,000 3,177,300 SFMR: 6.60%, 12/1/2025 (Collateralized: FNMA & GNMA) . . . . . . . . . . . . . . . . . 4,660,000 5,000,180 5.75%, 8/1/2026 (Collateralized: FNMA & GNMA) . . . . . . . . . . . . . . . . . 5,000,000 5,198,800 U.S. RELATED--10.8% Guam Airport Authority, Revenue 6.70%, 10/1/2023 . . . . . . . . . . . . . . . . . . . . 10,000,000 10,951,600 Puerto Rico Commonwealth Aqueduct and Sewer Authority, Revenue, Refunding 5%, 7/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,870,000 15,717,648 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue: 5.40%, 7/1/2006 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,257,040 5.50%, 7/1/2026 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,060,330 Puerto Rico Electric Power Authority, Power Revenue 5.50%, 7/1/2025 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,152,490 ______________ TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $298,420,711)....................................... $317,609,904 ______________ Short-Term Municipal Investments--1.5% - ------------------------------------------------------- Maryland; Northeast Waste Disposal Authority, RRR, Refunding, VRDN (Harford County Resource) 2.95% (Insured; AMBAC) (a) (cost $4,965,000) . . . . . . . . $ 4,965,000 $ 4,965,000 ______________ TOTAL INVESTMENTS--100.0% (cost $303,385,711) . . . . . . . . . . . . . . . . . . . . . 99.2% $322,574,904 _______ ______________ CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8% $ 2,508,199 _______ ______________ NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $325,083,103 _______ ______________ DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- Summary of Abbreviations - ----------------------------------------------------------------------------- AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue COP Certificate of Participation MBIA Municipal Bond Investors Assurance EDR Economic Development Revenue Insurance Corporation FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue FHA Federal Housing Administration PCR Pollution Control Revenue FNMA Federal National Mortgage Association RRR Resources Recovery Revenue FSA Financial Security Assurance SFMR Single Family Mortgage Revenue GNMA Government National Mortgage Association VRDN Variable Rate Demand Notes SUMMARY OF COMBINED RATINGS (UNAUDITED) - ----------------------------------------------------------------------------- Fitch or Moody's or Standard & Poor's Percentage of Value ______ _______ ________________ _________________ AAA Aaa AAA 27.6% AA Aa AA 33.2 A A A 22.3 BBB Baa BBB 7.2 F1 + & F1 MIG1, VMIG1 & P1 SP1 & A1 1.5 Not Rated (b) Not Rated (b) Not Rated (b) 8.2 _______ 100.0% _______ _______ NOTES TO STATEMENT OF INVESTMENTS: - ----------------------------------------------------------------------------- (a) Securities payable on demand. Variable interest rate--subject to periodic change. (b) 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. (c) At October 31, 1998, the Fund had $87,655,199 (27.0% of net assets) and $108,022,217 (33.2% of net assets) invested in securities whose payment of principal and interest is dependent upon revenues generated from health care projects and housing projects, respectively. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998 (UNAUDITED) Cost Value _____________ _____________ ASSETS: Investments in securities--See Statement of Investments . . $303,385,711 $322,574,904 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 991,635 Interest receivable . . . . . . . . . . . . . . . . . . . 4,978,696 Receivable for shares of Beneficial Interest subscribed . . 450,025 Receivable for investment securities sold . . . . . . . . 445,176 Prepaid expenses . . . . . . . . . . . . . . . . . . . . 16,078 ______________ 329,456,514 ______________ LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 156,564 Due to Distributor . . . . . . . . . . . . . . . . . . . 94,101 Payable for shares of Beneficial Interest redeemed . . . 171,607 Payable for investment securities purchased . . . . . . . 3,904,542 Accrued expenses and liabilities . . . . . . . . . . . . 46,597 ______________ 4,373,411 ______________ NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $325,083,103 ______________ REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $301,074,030 Accumulated net realized gain (loss) on investments . . . 4,819,879 Accumulated net unrealized appreciation (depreciation) on investments--Note 4 . . . . . . . . . . . . . . . . 19,189,194 ______________ NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $325,083,103 ______________ NET ASSET VALUE PER SHARE ------------------------------------------------------------ Class A Class B Class C ______________ ______________ ______________ Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $265,890,298 $ 56,530,927 $ 2,661,878 Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . 20,071,427 4,266,874 200,784 NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . $13.25 $13.25 $13.26 _______ _______ _______ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1998 (UNAUDITED) INVESTMENT INCOME INCOME Interest Income . . . . . . . . . . . . . . . . . $ 9,502,799 EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $ 884,461 Shareholder servicing costs--Note 3(c) . . . . . 509,657 Distribution fees--Note 3(b) . . . . . . . . . . 141,325 Professional fees . . . . . . . . . . . . . . . . 19,830 Custodian fees . . . . . . . . . . . . . . . . . 17,093 Registration fees . . . . . . . . . . . . . . . . 8,189 Prospectus and shareholders' reports . . . . . . 7,733 Trustees' fees and expenses--Note 3(d) . . . . . 1,613 Loan commitment fees--Note 2 . . . . . . . . . . 913 Miscellaneous . . . . . . . . . . . . . . . . . . 8,461 ____________ Total Expenses . . . . . . . . . . . . . . . . 1,599,275 ____________ INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,903,524 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4: Net realized gain (loss) on investments . . . . . $ 2,280,971 Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . . . . . 2,468,007 ____________ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 4,748,978 ____________ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $12,652,502 ____________ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS Six Months Ended October 31, 1998 Year Ended (Unaudited) April 30, 1998 _______________ _____________ OPERATIONS: Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,903,524 $ 15,888,933 Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 2,280,971 4,073,024 Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . 2,468,007 8,042,789 ______________ _____________ Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 12,652,502 28,004,746 ______________ _____________ DIVIDENDS TO SHAREHOLDERS FROM: Investment income--net: Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,666,293) (13,655,457) Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,193,783) (2,196,616) Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (43,448) (36,860) Net realized gain on investments: Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (3,083,888) Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (552,806) Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (9,259) ______________ _____________ Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,903,524) (19,534,886) ______________ _____________ BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from shares sold: Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,947,891 8,758,816 Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,053,246 7,395,511 Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 983,852 1,433,134 Dividends reinvested: Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,177,724 10,820,042 Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741,268 1,800,125 Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,468 31,396 Cost of shares redeemed: Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,748,772) (30,922,294) Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,171,890) (5,603,825) Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (54,184) ______________ _____________ Increase (Decrease) in Net Assets from Beneficial Interest Transactions . 6,015,787 (6,341,279) ______________ _____________ Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . 10,764,765 2,128,581 NET ASSETS: Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314,318,338 312,189,757 ______________ _____________ End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $325,083,103 $314,318,338 ______________ _____________ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) Shares ________________________________ Six Months Ended October 31, 1998 Year Ended (Unaudited) April 30, 1998 _______________ _____________ CAPITAL SHARE TRANSACTIONS: Class A ________ Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601,318 669,128 Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 316,122 825,979 Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (966,014) (2,367,974) _________ ___________ Net Increase (Decrease) in Shares Outstanding . . . . . (48,574) (872,867) _________ ___________ Class B ________ Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533,747 564,406 Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 56,070 137,404 Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (164,765) (428,097) _________ ___________ Net Increase (Decrease) in Shares Outstanding . . . . . 425,052 273,713 _________ ___________ Class C ________ Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,376 109,671 Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 2,545 2,391 Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (4,128) _________ ___________ Net Increase (Decrease) in Shares Outstanding . . . . . 76,921 107,934 _________ ___________ SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Contained below is per share operating performance data for a share of Beneficial Interest outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements. Class A Shares _______________________________________________________________________ Six Months Ended October 31, 1998 Year Ended April 30, _______________________________________________________ PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994 __________ _______ _______ _______ _______ _______ Net asset value, beginning of period . . . . . $13.05 $12.70 $12.69 $12.54 $12.46 $13.02 _______ _______ _______ _______ _______ _______ Investment Operations: Investment income--net . . . . . . . . . . . . .33 .67 .68 .67 .70 .73 Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . .20 .50 .18 .23 .08 (.53) _______ _______ _______ _______ _______ _______ Total from Investment Operations . . . . . . . .53 1.17 .86 .90 .78 .20 _______ _______ _______ _______ _______ _______ Distributions: Dividends from investment income--net . . . . . (.33) (.67) (.68) (.67) (.70) (.73) Dividends from net realized gain on investments . . . . . . . . . . . . . -- (.15) (.17) (.08) -- (.03) _______ _______ _______ _______ _______ _______ Total Distributions . . . . . . . . . . . . . . (.33) (.82) (.85) (.75) (.70) (.76) _______ _______ _______ _______ _______ _______ Net asset value, end of period . . . . . . . . $13.25 $13.05 $12.70 $12.69 $12.54 $12.46 _______ _______ _______ _______ _______ _______ TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 8.17%(2) 9.40% 6.91% 7.24% 6.52% 1.33% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets . . . . .90%(2) .90% .90% .90% .90% .80% Ratio of net investment income to average net assets . . . . . . . . . . . 5.01%(2) 5.12% 5.29% 5.23% 5.69% 5.51% Decrease reflected in above expense ratios due to undertakings by the Manager . . . . . . -- -- -- -- .01% .10% Portfolio Turnover Rate . . . . . . . . . . . . 12.10%(3) 18.12% 43.63% 41.65% 35.39% (10.27%) Net Assets, end of period (000's Omitted) . . . $265,890 $262,560 $266,658 $283,878 $301,834 $335,518 - -------------- (1) Exclusive of sales load. (2) Annualized. (3) Not annualized. SEE NOTES TO FINANCIAL STATEMENTS. DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (CONTINUED) Contained below is per share operating performance data for a share of Beneficial Interest outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements. Class B Shares _________________________________________________________________________ Six Months Ended October 31, 1998 Year Ended April 30, _______________________________________________________ PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994 __________ _______ _______ _______ _______ _______ Net asset value, beginning of period . . . . . $13.05 $12.70 $12.69 $12.54 $12.46 $13.02 _______ _______ _______ _______ _______ _______ Investment Operations: Investment income--net . . . . . . . . . . . . .30 .60 .61 .61 .63 .65 Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . .20 .50 .18 .23 .08 (.53) _______ _______ _______ _______ _______ _______ Total from Investment Operations . . . . . . . .50 1.10 .79 .84 .71 .12 _______ _______ _______ _______ _______ _______ Distributions: Dividends from investment income--net . . . . . (.30) (.60) (.61) (.61) (.63) (.65) Dividends from net realized gain on investments . . . . . . . . . . . . . -- (.15) (.17) (.08) -- (.03) _______ _______ _______ _______ _______ _______ Total Distributions . . . . . . . . . . . . . . (.30) (.75) (.78) (.69) (.63) (.68) _______ _______ _______ _______ _______ _______ Net asset value, end of period . . . . . . . . $13.25 $13.05 $12.70 $12.69 $12.54 $12.46 _______ _______ _______ _______ _______ _______ TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 7.62%(2) 8.83% 6.34% 6.66% 5.94% .75% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets . . . . 1.43%(2) 1.42% 1.43% 1.43% 1.44% 1.37% Ratio of net investment income to average net assets . . . . . . . . . . 4.47%(2) 4.59% 4.75% 4.68% 5.13% 4.82% Decrease reflected in above expense ratios due to undertakings by the Manager . . . . . . -- -- -- -- .01% .08% Portfolio Turnover Rate . . . . . . . . . . . . 12.10%(3) 18.12% 43.63% 41.65% 35.39% (10.27%) Net Assets, end of period (000's Omitted) . . . $56,531 $50.141 $45,329 $41,179 $35,090 $30,527 - --------- (1) Exclusive of sales load. (2) Annualized. (3) Net annualized. SEE NOTES TO FINANCIAL STATEMENTS. DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS (CONTINUED) Contained below is per share operating performance data for a share of Beneficial Interest outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements. Class C Shares ________________________________________________ Six Months Ended October 31, 1998 Year Ended April 30, _______________________________ PER SHARE DATA: (Unaudited) 1998 1997 1996(1) _________ _______ _______ _______ Net asset value, beginning of period . . . . . . . . . . . . . . . . . $13.06 $12.71 $12.69 $12.67 _______ _______ _______ _______ Investment Operations: Investment income (loss)--net . . . . . . . . . . . . . . . . . . . . . .28 .57 .58 .41 Net realized and unrealized gain (loss) on investments . . . . . . . . .20 .50 .19 .10 _______ _______ _______ _______ Total from Investment Operations . . . . . . . . . . . . . . . . . . . .48 1.07 .77 .51 _______ _______ _______ _______ Distributions: Dividends from investment income--net . . . . . . . . . . . . . . . . . (.28) (.57) (.58) (.41) Dividends from net realized gain on investments . . . . . . . . . . . . -- (.15) (.17) (.08) _______ _______ _______ _______ Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . (.28) (.72) (.75) (.49) _______ _______ _______ _______ Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $13.26 $13.06 $12.71 $12.69 _______ _______ _______ _______ TOTAL INVESTMENT RETURN (2). . . . . . . . . . . . . . . . . . . . . . . . 7.36%(3) 8.55% 6.16% 5.57%(3) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 1.67%(3) 1.67% 1.64% 1.80%(3) Ratio of net investment income to average net assets . . . . . . . . . 4.17%(3) 4.29% 4.47% 4.59%(3) Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 12.10%(4) 18.12% 43.63% 41.65% Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $2,662 $1,618 $202 $27 - --------- (1) From August 15, 1995 (commencement of initial offering) to April 30, 1996. (2) Exclusive of sales load. (3) Annualized. (4) Not annualized. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES: Dreyfus Premier State Municipal Bond Fund (the "Trust") is registered under the Investment Company Act of 1940 (the "Act") as a non-diversified open-end management investment company, and operates as a series company currently offering thirteen series including the Maryland Series (the "Fund"). The Fund's investment objective is to maximize current income exempt from Federal and, where applicable, from State income taxes, without undue risk. The Dreyfus Corporation (the "Manager") serves as the Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the Fund's shares. The Fund is authorized to issue an unlimited number of $.001 par value shares in the following classes of shares: Class A, Class B and Class C shares. Class A shares are subject to a sales charge imposed at the time of purchase, Class B shares are subject to a contingent deferred sales charge (" CDSC") imposed on Class B share redemptions made within six years of purchase (five years for shareholders beneficially owning Class B shares on November 30, 1996) and Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. The Trust accounts separately for the assets, liabilities and operations of each fund. Expenses directly attributable to each fund are charged to that fund' s operations; expenses which are applicable to all funds are allocated among them on a pro rata basis. The Fund' s financial statements are prepared in accordance with generally accepted accounting principles which may require the use of management estimates and assumptions. Actual results could differ from those estimates. (A) PORTFOLIO VALUATION: Investments in securities (excluding options and financial futures on municipal and U.S. treasury securities) are valued each business day by an independent pricing service ("Service") approved by the Board of Trustees. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Options and financial futures on municipal and U.S. treasury securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Investments not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. (B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Interest income, adjusted for amortization of premiums and original issue discounts on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Under the terms of the custody agreement, the Fund received net earnings credits of $11,633 during the period ended October 31, 1998 based on available cash balances left on deposit. Income earned under this arrangement is included in interest income. DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES - ----------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) The Fund follows an investment policy of investing primarily in municipal obligations of one state. Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the Fund. (C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gain are normally declared and paid annually, but the Fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the"Code"). To the extent that net realized capital gain can be offset by capital loss carryovers, if any, it is the policy of the Fund not to distribute such gain. (D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify as a regulated investment company, which can distribute tax exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all Federal income and excise taxes. NOTE 2--BANK LINE OF CREDIT: The Fund participates with other Dreyfus-managed funds in a $600 million redemption credit facility (" Facility" ) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the Fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the Fund at rates based on prevailing market rates in effect at the time of the borrowings. During the period ended October 31, 1998, 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 $000 during the period ended October 31, 1998, from commissions earned on sales of the Fund's shares. (B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Class B and Class C shares pay the Distributor for distributing their 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, 1998, Class B and Class C shares were charged $133,508 and $7,817, respectively, pursuant to the Distribution Plan. (C) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay the Distributor at an annual rate of .25 of 1% of the value of their average daily net assets 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, 1998, Class A, Class B and Class C shares were charged $332,668, $66,754 and $2,606, respectively, pursuant to the Shareholder Services Plan. DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND 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, 1998, the Fund was charged $70,668 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 ended October 31, 1998 amounted to $41,634,059 and $37,949,198, respectively. At October 31, 1998, accumulated net unrealized appreciation on investments was $19,189,193, consisting of $20,484,847 gross unrealized appreciation and $1,295,654 gross unrealized depreciation. At October 31, 1998, the cost of investments for Federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). ( DREYFUS PREMIER STATE MUNICIPAL BOND FUND, MARYLAND SERIES 200 Park Avenue New York, NY 10166 MANAGER The Dreyfus Corporation 200 Park Avenue New York, NY 10166 CUSTODIAN The Bank of New York 90 Washington Street New York, NY 10286 TRANSFER AGENT & DIVIDEND DISBURSING AGENT Dreyfus Transfer, Inc. P.O. Box 9671 Providence, RI 02940 Printed in U.S.A. 052/616SA9810 SEMI-ANNUAL REPORT - ------------------------------------------------------------------------------- DREYFUS PREMIER STATE MUNICIPAL BOND FUND MARYLAND SERIES - ------------------------------------------------------------------------------- OCTOBER 31, 1998 -----END PRIVACY-ENHANCED MESSAGE-----