Dreyfus
Intermediate Municipal
Bond Fund, Inc.
SEMIANNUAL REPORT November 30, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. In addition, issuers of securities in
which the fund invests may be adversely affected by year 2000-related problems.
This could have an impact on the value of the fund's investments and its share
price.
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
21 Statement of Assets and Liabilities
22 Statement of Operations
23 Statement of Changes in Net Assets
24 Financial Highlights
25 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Intermediate
Municipal Bond Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Intermediate
Municipal Bond Fund, Inc., covering the six-month period from June 1, 1999
through November 30, 1999. Inside, you'll find valuable information about how
the fund was managed during the reporting period, including a discussion with
the fund' s portfolio manager, Monica Wieboldt.
When the reporting period began, evidence had emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might re-emerge caused the Federal Reserve Board to raise short-term interest
rates three times during the summer and fall of 1999. Higher interest rates led
to some erosion of municipal bond prices, especially toward the end of the
reporting period.
Municipal bonds were also adversely affected by supply-and-demand
considerations. Recently, however, these technical influences have caused the
yields of tax-exempt bonds to rise to very attractive levels compared to the
after-tax yields of taxable bonds of comparable maturity and credit quality.
This is especially true for investors in the higher federal income tax brackets
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Intermediate Municipal Bond Fund, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
December 15, 1999
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus Intermediate Municipal Bond Fund, Inc. perform?
The fund achieved a -1.25% total return over the six-month reporting period.(1)
In comparison, the Lipper Intermediate Municipal Debt Funds Category Average,
the Lipper category in which the fund is reported, achieved a -1.34% total
return for the same period.(2)
We attribute the fund's negative return over the past six months to a declining
municipal bond market and a rising interest-rate environment. The fund's
favorable relative outperformance of the Lipper average was primarily the result
of our security selection strategy, which was designed to take advantage of
attractive values created by the market's decline.
What is the fund's investment approach?
The fund's primary objective is to seek as high a level of federally tax-exempt
income as is practical from a diversified portfolio of municipal bonds, keeping
an average maturity of 3-10 years, from issuers throughout the United States. In
addition, we also seek a competitive total return.
To achieve these objectives, we first attempt to add value by selecting
investment-grade tax-exempt bonds in the maturity ranges that we believe are
most likely to provide the highest yields. These bonds comprise the portfolio's
long-term core position. We augment the core position with bonds that we believe
have the potential to provide both current income and capital appreciation
What other factors influenced the portfolio's performance?
The portfolio was adversely affected by rising interest rates when the reporting
period began on June 1, 1999. Investors had become concerned that stronger than
expected economic growth, low unemployment and rising commodity prices might
rekindle long-dormant The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
inflationary pressures. In fact, in an attempt to forestall a potential
reacceleration of inflation, the Federal Reserve Board raised short-term
interest rates three times during the summer and fall of 1999, causing most bond
prices to fall.
Municipal bond prices fell substantially for this reason, and also because of
differing supply-and-demand influences. For a variety of reasons, institutional
investors such as insurance companies and hedge funds participated less in the
tax-exempt market over the past year, which reduced overall demand and drove
municipal bond prices down significantly. One result has been that demand for
U.S. Treasury securities has remained strong from both domestic and foreign
investors, while the supply has fallen because of the federal budget surplus. As
a result, municipal bonds are currently offering tax-exempt yields that compare
very favorably with the taxable yields on U.S. Treasury securities, after
adjusting for taxes. Of course, this yield increase comes at the cost of having
achieved a negative total return.
What is the portfolio's current strategy?
During the reporting period, yields continued to rise across all the
fixed-income markets. The effects of the Federal Reserve rate hikes will take
time to work through the economy and cause the desired slowdown. Since the
interest-rate environment remains uncertain we opted to maintain a neutral
duration stance. We found opportunities in the front end of the curve (1-5
years) that enabled us to lock in very attractive yields with minimum
volatility. That's primarily because certain issuers, such as utilities, did not
want to commit to then prevailing interest rates for longer term debt, so they
issued short-term bonds in the hope that yields would moderate in the
foreseeable future, thereby increasing the available supply and forcing yields
incrementally higher. We took advantage of this situation by locking in the
highly competitive yields these bonds offered at the time.
In addition, we took advantage of opportunities to purchase out-of-favor bonds
that, in our opinion, were punished more severely than circumstances warranted
during the reporting period. Some bonds
selling at a discount to their face values were particularly attractively
priced, providing the potential to produce capital appreciation and maintain the
fund' s income stream if interest rates decline from prevailing levels. Of
course, there can be no guarantee when the municipal market may recover, or how
the fund might perform in the future. Such an environment also provides the
opportunity to re-evaluate our holdings from a credit viewpoint. As often
happens during market downturns, opportunities to trade into stronger credit
quality bonds often present themselves. In some cases, we were able to purchase
insured bonds with very attractive yields.(3) We have also maintained a cash
reserve to take advantage of new opportunities if, as we expect, year-end and
Y2K-related concerns temporarily produce attractive values in the municipal bond
market.
December 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX
(AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE. RETURN
FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY THE THE DREYFUS
CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT THAT MAY BE EXTENDED,
TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT BEEN ABSORBED, THE
FUND'S RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
(3) INSURANCE EXTENDS TO THE ABILITY TO PAY INTEREST AND REPAY PRINCIPAL ON A
DEFAULTED PORTFOLIO SECURITY. PORTFOLIO INSURANCE DOES NOT EXTEND TO THE MARKET
VALUE OF PORTFOLIO SECURITIES OR THE FUND'S SHARES.
<TABLE>
<CAPTION>
The Fund
STATEMENT OF INVESTMENTS
November 30, 1999 (Unaudited)
Principal
LONG-TERM MUNICIPAL INVESTMENTS--97.8% Amount ($) Value ($)
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ALABAMA--.8%
Bay Minette Industrial Development Board, IDR
<S> <C> <C>
(Coltec Industries, Inc) 6.50%, 2/15/2009 4,505,000 4,534,463
McIntosh Industrial Development Board, EIR
4.65%, 6/1/2008 5,500,000 5,200,525
ALASKA--2.8%
Alaska Industrial Development and Export Authority,
Revolving Fund 6.375%, 4/1/2008 3,000,000 3,145,800
Alaska Housing Finance Corp.:
5.75%, 12/1/2009 (Insured; MBIA) 9,800,000 10,085,180
5.30%, 12/1/2012 (Insured; MBIA) 2,500,000 2,421,075
Alaska Student Loan Corp., Student Loan Revenue:
5.60%, 7/1/2011 (Insured; AMBAC) 4,700,000 4,732,900
5.70%, 7/1/2013 (Insured; AMBAC) 5,990,000 5,997,308
Anchorage, Electric Utility Revenue:
6.50%, 12/1/2008 (Insured; MBIA) 2,755,000 3,037,994
6.50%, 12/1/2009 (Insured; MBIA) 2,910,000 3,217,703
ARIZONA-2.7%
Maricopa County Community College District
4%, 7/1/2013 8,325,000 7,009,317
Maricopa County Industrial Development Authority:
Hospital Facility Revenue (Samaritan Health Services)
7.15%, 12/1/2004 (Insured; MBIA) 9,835,000 10,788,995
Hospital Systems Revenue (Baptist Hospital)
5.20%, 9/1/2005 (Insured; MBIA) 3,125,000 3,190,875
Mesa Industrial Development Authority, Revenue
(TRW Vehicle Safety Systems, Inc. Project)
7.25%, 10/15/2004 5,000,000 5,148,550
Phoenix 4.125%, 7/1/2014 7,080,000 5,944,722
CALIFORNIA-1.8%
California:
6.922%, 12/1/2013 5,000,000 (a,b) 4,816,650
Veterans, 5.40%, 12/1/2014 5,000,000 4,888,000
California Statewide Community Development Authority:
Apartment Development Revenue
(Irvine Apartment Communities) 5.10%, 5/17/2010 4,000,000 3,806,640
MFHR 5.20%, 12/1/2029 3,000,000 2,875,770
Student Education Loan Marketing Corporation,
Student Loan Revenue:
6.70%, 7/1/2008 2,500,000 2,458,475
6.75%, 7/1/2008 2,500,000 2,550,325
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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COLORADO--4.3%
Bowles Metropolitan Distict, 4.25%, 12/1/2023
(LOC; U.S. Bank National Association) 5,000,000 4,712,200
Denver City and County, Airport Revenue
8.75%, 11/15/2005 10,645,000 11,528,003
E-470 Public Highway Authority, Revenue
Zero Coupn, 9/1/2010 (Insured; MBIA) 30,000,000 16,809,900
El Paso County School District
(Number 11 Colorado Springs):
6.25%, 12/1/2009 1,000,000 1,091,280
6.50%, 12/1/2010 2,000,000 2,214,880
6.50%, 12/1/2011 2,040,000 2,258,239
Interlocken Metropolitan District:
Zero Coupon, 12/15/2007 2,835,000 1,844,082
Zero Coupon, 12/15/2008 2,835,000 1,735,785
Metropolitan Football Stadium District, Sales Tax Revenue
Zero Coupon, 1/1/2008 (Insured; MBIA) 12,000,000 7,861,080
CONNECTICUT--.9%
Connecticut, Revenue
(Mashantucket Western Pequot Tribe):
6.50%, 9/1/2006 (Escrowed to Maturity) 2,475,000 2,715,743
6.50%, 9/1/2006 2,525,000 2,701,523
5.60%, 9/1/2009 1,000,000 985,160
5.70%, 9/1/2012 2,400,000 2,315,496
Connecticut Development Authority, PCR
(United Illuminating) 4.35%, 6/1/2026 2,125,000 2,060,251
DISTRICT OF COLUMBIA--1.0%
District of Columbia, Revenue (American University)
5.50%, 10/1/2011 (Insured; AMBAC) 5,435,000 5,478,045
Metropolitan Airports Authority, Airport Revenue
5.75%, 10/1/2011 (Insured; MBIA) 5,750,000 5,907,895
FLORIDA--1.5%
Dade County, Resource Recovery Facility Revenue
5.20%, 10/1/2005 (Insured; AMBAC) 7,880,000 8,000,170
Orange County, Tourist Development Tax Revenue
5%, 10/1/2015 (Insured; MBIA) 5,000,000 4,674,850
Palm Beach County, Solid Waste IDR
(Okeelanta Power L.P. Project) 6.50%, 2/15/2009 3,600,000 (c) 2,204,640
Pinellas County, RRR
5.10%, 10/1/2003 (Insured; MBIA) 2,915,000 2,955,810
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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GEORGIA--1.0%
Atlanta, Airport Facilities Revenue
6%, 1/1/2007 (Insured; AMBAC) 5,780,000 6,147,608
Zero Coupon, 1/1/2010 (Insured; MBIA) 9,600,000 5,324,640
HAWAII--.3%
Hawaii, Airports System Revenue
7.50%, 7/1/2005 (Insured; FGIC) 3,000,000 3,111,900
ILLINOIS--6.6%
Carol Stream, First Mortgage Revenue
(Windsor Park Manor Project) 6.50%, 12/1/2007 3,000,000 3,062,910
Chicago O'Hare International Airport:
Passenger Facility Charge Revenue
5.50%, 1/1/2008 (Insured; AMBAC) 5,000,000 5,129,250
Special Facility Revenue:
6.254%, 4/1/2011 2,750,000 (a,b) 2,262,480
(International Terminal)
7.50%, 1/1/2005 (Prerefunded 1/1/2000) 905,000 (d) 925,697
(United Airlines, Inc. Projectl)
5.35%, 9/1/2016 6,500,000 5,680,025
Chicago Public Building Commission,
Building Revenue 5.50% 2/1/2006 (Insured; FGIC) 2,000,000 2,059,320
Hoffman Estates, Tax Increment Revenue
(Area Economic Development Project):
7.50%, 11/15/2003 (LOC; Union Bank
of Switzerland, Prerefunded 11/15/2000) 5,145,000 (d) 5,414,495
5.25%, 11/15/2009 10,000,000 9,919,500
Illinois Development Finance Authority, Providers Facility
Acquisition Revenue, (Community Rehabilitation):
8.25%, 9/1/2000 545,000 550,908
5.60%, 7/1/2003 1,485,000 1,503,978
5.60%, 7/1/2004 1,000,000 1,010,080
5%, 7/1/2006 2,510,000 2,357,392
5.90%, 7/1/2009 1,325,000 1,329,147
Illinois Educational Facilities Authority, Revenue:
(Illinois Institute of Technology) 6.60%, 12/1/2009 2,665,000 2,871,164
(MJH Education Assistance)
5%, 9/1/2013 (Insured; AMBAC) 3,000,000 2,824,590
Illinois Health Facilities Authority, Revenue:
(Central Dupage Health Wyndemere Retirement
Community) 6.125%, 11/1/2007 (Insured; MBIA) 4,400,000 4,596,724
(Evangelical Hospital):
6.75%, 4/15/2007 2,035,000 2,208,443
6.75%, 4/15/2007 (Prerefunded 4/15/2002) 1,055,000 (d) 1,127,932
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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ILLINOIS (CONTINUED)
Illinois Health Facilities Authority, Revenue (continued):
(Southern Illinois Hospital Services) 6.50%, 3/1/2007
(Insured; MBIA, Prerefunded 3/1/2002) 4,000,000 (d) 4,248,880
(Swedish American Hospital) 7.30%, 4/1/2007
(Insured; AMBAC, Prerefunded 4/1/2000) 4,000,000 (d) 4,122,560
Metropolitan Pier and Exposition Authority, Dedicated
Tax Revenue (McCormick Place Exposition):
Zero Coupon, 6/15/2015 (Insured; FGIC) 10,040,000 4,048,530
5.375, 12/15/2015 (Insured; FGIC) 6,485,000 6,255,236
Normal, EDR (Dayton--Hudson Corp. Project)
6.75%, 11/1/2001 3,400,000 3,514,648
INDIANA--8.5%
Boonville Junior High School Building Corp.,
First Mortgage Revenue 6.80%, 7/1/2005 3,100,000 3,299,082
Brownsburg School Building Corp.,
First Mortgage Revenue:
5.80%, 8/1/2008
(Insured; FSA, Prerefunded 2/1/2005) 2,650,000 (d) 2,822,012
5.90%, 8/1/2009
(Insured; FSA, Prerefunded 2/1/2005) 2,895,000 (d) 3,096,058
Central High School Building Corp., First Mortgage
5.50%, 8/1/2009 (Insured; AMBAC) 3,960,000 4,068,781
Indiana Bond Bank (Hendricks Special Hospital Program)
6.90%, 4/1/2006 3,000,000 3,176,730
Indiana Development Finance Authority, PCR
(Inland Steel Company Project Number 13):
5.75%, 10/1/2011 11,500,000 10,126,900
7.25%, 11/1/2011 10,330,000 10,149,432
Indiana Health Facility Financing Authority, HR
(Clarian Health Partners, Inc.):
5.50%, 2/15/2010 3,000,000 3,011,550
5.50%, 2/15/2011 5,000,000 4,989,200
Indiana Municipal Power Agency,
Power Supply Systems Revenue
5.70%, 1/1/2006 (Insured; MBIA) 8,400,000 8,756,328
Indiana Transportation Finance Authority,
Airport Facilities LR (United Air):
6.50%, 11/1/2007 2,575,000 2,733,285
6.50%, 11/1/2007 (Prerefunded 11/1/2002) 2,675,000 (d) 2,874,716
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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INDIANA (CONTINUED)
Indianapolis Local Public Improvement Bond Bank:
6.30%, 2/1/2004 2,800,000 2,954,728
6.40%, 2/1/2005 3,000,000 3,196,710
6.50%, 1/1/2011 (Insured; FSA) 6,415,000 7,113,465
Knox County Hospital Association, LR
5.65%, 7/1/2008 (Insured; MBIA) 4,150,000 4,257,444
Logansport School Building Corp., First Mortgage Revenue
7.30%, 1/15/2007 (Prerefunded 1/15/2000) 4,750,000 (d) 4,863,620
North Montgomery Elementary School Building Corp.,
First Mortgage Revenue 6.50%, 7/1/2006 5,665,000 6,023,595
Plymouth, Multi-School Building Corp.
(First Mortgage-Plymouth Community School)
5.50%, 7/1/2005 (Insured; MBIA) 3,000,000 3,103,920
Westfield High School Building Corp.,
First Mortgage Revenue:
5.45%, 7/15/2009
(Insured; AMBAC, Prerefunded 7/15/2005) 5,000,000 (d) 5,256,400
5.25%, 7/5/2013 (Insured; AMBAC) 3,000,000 2,918,880
IOWA--1.5%
Ames, HR (Mary Greeley Medical Center Project)
6.25%, 8/15/2006 (Insured; AMBAC) 4,320,000 4,574,448
Council Bluffs, IDR (Cargill, Inc. Project) 7%, 3/1/2007 4,400,000 4,677,860
Iowa Student Loan Liquidity Corp.,
Student Loan Revenue:
6.35%, 3/1/2001
(Insured; Guaranteed Student Loans) 3,400,000 3,478,336
6.65%, 3/1/2003
(Insured; Guaranteed Student Loans) 4,900,000 5,176,458
KENTUCKY--1.6%
Carrolton and Henderson Public Energy Authority,
Gas Revenue (Kentucky Trust)
5%, 1/1/2006 (Insured; FSA) 5,000,000 5,021,900
Jefferson County School District Finance Corporation,
School Building Revenue
4.50%, 2/1/2015 (Insured; MBIA) 3,930,000 3,381,411
Kenton County Airport Board, Airport Revenue
(Cincinnati/Northern Kentucky International)
5.75%, 3/1/2009 (Insured; MBIA) 3,710,000 3,831,354
Mount Sterling, LR (Kentucky League Cities Funding)
5.625%, 3/1/2003 6,500,000 6,647,810
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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LOUISIANA--1.7%
Louisiana Office Facilities Corporation, LR
(Capitol Complex Program)
5%, 3/1/2006 (Insured; MBIA) 4,305,000 4,331,088
Louisiana Public Facilities Authority, Revenue:
8.05%, 11/15/2012 4,430,000 (a) 4,708,558
8.05%, 11/15/2012 (Prerefunded 11/15/2002) 3,635,000 (a,d) 3,912,605
(Louisiana Association of Independent Colleges
and Universities) 6.50%, 12/1/2002 2,155,000 2,241,351
Saint Charles Parish, PCR
6.361%, 10/1/2003 5,125,000 (a,b) 5,071,700
MAINE--.4%
Maine Educational Loan Marketing Corp.,
Student Loan Revenue 6.90%, 11/1/2003 4,120,000 4,246,525
MARYLAND--.8%
Northeast Waste Disposal Authority, RRR
(Baltimore Resco Retrofit Project):
4.75%, 1/1/2012 6,900,000 5,617,497
5%, 1/1/2012 5,000,000 4,170,050
MASSACHUSETTS--2.2%
Barnstable 4.50%, 3/15/2015 320,000 278,022
Boston Industrial Development Financing Authority,
Sewage Facility Revenue (Harbor Electric Energy Co.)
7.10%, 5/15/2002 2,250,000 2,321,235
Massachusetts :
6.40%, 8/1/2003 3,175,000 3,374,390
Water Pollution Abatement Revenue
(New Bedford Loan Program):
5.50%, 2/1/2008 1,310,000 1,354,723
5.50%, 2/1/2008 (Prerefunded 2/1/2006) 5,640,000 (d) 5,888,837
Massachusetts Housing Finance Agency
Housing Revenue:
6.30%, 7/1/2007 (Insured; AMBAC) 3,040,000 3,172,666
6.35%, 7/1/2008 (Insured; AMBAC) 3,265,000 3,407,256
6.40%, 7/1/2009 (Insured; AMBAC) 3,565,000 3,720,078
Plymouth County, COP (Correctional Facilities Project)
5%, 4/1/2015 (Insured; AMBAC) 2,025,000 1,882,177
MICHIGAN--5.6%
Detroit Local Development Finance Authority:
5.25%, 5/1/2006 1,570,000 1,586,532
5.20%, 5/1/2010 5,745,000 5,669,798
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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MICHIGAN (CONTINUED)
Greater Detroit Resource Recovery Authority, Revenue:
6.25%, Series A, 12/13/2008 (Insured; AMBAC) 11,000,000 11,943,800
6.25%, Series B, 12/13/2008 (Insured; AMBAC) 7,755,000 8,420,379
Michigan Hospital Finance Authority, Revenue:
6.49%, 11/15/2007 12,000,000 (a) 12,084,000
(Genesys Health System)
8.10%, 10/1/2013 (Prerefunded 10/1/2005) 10,000,000 11,825,400
Michigan Strategic Fund:
Obligation Revenue (Detroit Edison) 4.73%, 9/1/2029 3,750,000 3,740,400
SWDR (Genesee Power Station Project)
7.125%, 1/1/2006 7,500,000 7,669,275
Wayne State University, University Revenues
5.40%, 11/15/2006 (Insured; AMBAC) 2,775,000 2,887,332
MISSISSIPPI--.8%
Mississippi Development Bank, Special Obligation
(Adams County HR Project)
5.75%, 7/1/2010 (Insured; FSA) 3,445,000 3,549,452
Walnut Grove Correctional Authority, COP:
5.25%, 11/1/2005 (Insured; AMBAC) 1,670,000 1,698,357
5.50%, 11/1/2006 (Insured; AMBAC) 1,760,000 1,809,315
5.50%, 11/1/2007 (Insured; AMBAC) 1,855,000 1,899,724
MISSOURI--2.9%
Joplin Industrial Development Authority, Revenue
(Catholic Health Initiatives):
5.50%, 12/1/2009 3,185,000 3,227,775
5.625%, 12/1/2010 3,340,000 3,401,356
Phelps City Industrial Development Authority, Revenue
(Excel Corp. Project) 7%, 12/1/2000 4,500,000 4,617,360
Saint Louis, Airport Improvement Revenue
(Lambert--Saint Louis International Airport):
6%, 7/1/2005 (Insured; FGIC) 1,545,000 1,604,977
6%, 7/1/2005 (Insured; FGIC, Prerefunded 7/1/2002) 8,130,000 (d) 8,582,434
Saint Louis Municipal Finance Corp., Leasehold Revenue:
5.375%, 7/15/2003 (LOC; Sanwa Bank, Ltd.) 5,075,000 5,176,652
5.50%, 7/15/2004 (LOC; Sanwa Bank, Ltd.) 6,835,000 7,003,893
NEBRASKA--.2%
Albion, IDR (Cargill, Inc. Project) 7%, 12/1/2000 2,600,000 2,672,384
NEVADA--1.0%
Clark County, Passenger Facility Charge Revenue
(Las Vegas McCarran International Airport):
5.95%, 7/1/2005 (Insured; AMBAC) 6,365,000 6,737,225
5.80%, 7/1/2009 (Insured; MBIA) 4,250,000 4,385,108
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY--1.7%
New Jersey Economic Development Authority:
Special Facilities Revenue
(Continental Airlines, Inc. Project)
6.625%, 9/15/2012) 7,500,000 7,746,300
Waste Paper Recycling Revenue
(Marcal Paper Mills, Inc. Project):
5.75%, 2/1/2004 (Insured; MBIA) 2,815,000 2,803,008
8.50%, 2/1/2010 (Insured; MBIA) 2,930,000 3,234,486
Orange Township
6.60%, 2/1/2007 (Insured; FSA, Prerefunded 2/1/2005) 5,600,000 (d) 5,959,520
NEW MEXICO--1.4%
New Mexico Educational Assistance Foundation,
Student Loan Revenue:
6.60%, 3/1/2005 8,130,000 8,384,713
6.70%, 3/1/2006 7,345,000 7,591,498
NEW YORK--8.8%
City University of New York, COP (John Jay College)
5.75%, 8/15/2004 5,970,000 6,161,577
Long Island Power Authority, Electric System Revenue:
4.25%, 4/1/2003 6,000,000 5,889,120
5.50%, 12/1/2010 (Insured; AMBAC) 7,600,000 7,830,964
5%, 4/1/2012 (Insured; MBIA) 5,000,000 4,961,850
New York City:
5.70%, 8/1/2007 3,450,000 3,569,819
5.80%, 8/1/2008 5,725,000 5,947,645
6.25%, 8/1/2009 7,000,000 7,444,990
6.375%, 8/15/2009 19,750,000 21,170,420
6.375%, 8/15/2009 (Prerefunded 8/15/2005) 5,250,000 (d) 5,715,990
5%, 8/1/2012 3,935,000 3,734,472
New York State Dormitory Authority, Revenues
(Department of Health):
5.50%, 7/1/2010 2,000,000 2,007,360
5.625%, 7/1/2011 3,240,000 3,259,537
Mental Health Service Facilities, 6%, 8/15/2006 6,940,000 7,280,407
New York State Thruway Authority, Service Contract
Revenue (Local Highway & Bridge)
5.25%, 4/1/2013 (Insured; MBIA) 4,500,000 4,404,690
New York State Urban Development Corp.,
Correctional Facilities Revenue 5.25%, 1/1/2010 4,520,000 4,462,415
Niagara Falls City School District, COP
(High School Facility):
5.625%, 6/15/2011 1,835,000 1,818,081
5.625%, 6/15/2012 1,935,000 1,905,898
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
Triborough Bridge and Tunnel Authority, Revenue
6.75%, 1/1/2009 5,100,000 5,672,985
NORTH CAROLINA--2.1%
Coastal Regional Solid Waste Management Authority,
Solid Waste Disposal System Revenue
4%, 6/1/2006 (Insured; AMBAC) 2,150,000 2,015,389
North Carolina Eastern Municipal Power Agency,
Power System Revenue
5%, 1/1/2002 4,860,000 4,843,622
North Carolina Medical Care Commission,
Health Care Facilities Revenue
(First Mortgage-Deerfield) 5.30%, 11/1/2004 5,840,000 5,815,005
North Carolina Municipal Power Agency,
Electric Revenue (Number 1 Catawba):
6%, 1/1/2004 2,000,000 2,045,560
5.50%, 1/1/2010 10,000,000 9,900,400
OHIO-2.2%
Cleveland, Airport Systems Revenue:
5.50%, 1/1/2005 (Insured; FSA) 1,000,000 1,026,450
5.125%, 1/1/2010 (Insured; FSA) 1,700,000 1,671,049
Cuyahoga County, HR (Metrohealth System)
5.25%, 2/15/2010 (Insured; MBIA) 5,160,000 5,185,903
Franklin County, HR (Holy Cross Health Systems)
5.20%, 6/1/2005 (Insured; MBIA) 2,930,000 2,991,061
Knox County, Hospital Facilities Revenue
(Knox Community Hospital Asset Guaranty)
5%, 6/1/2012 1,500,000 1,430,880
Lorain, Hospital Improvement Revenue
(Lakeland Community Hospital, Inc.)
6.50%, 11/15/2012 3,860,000 4,175,478
Ohio Air Quality Development Authority, PCR
(Cleaveland) 4.60%, 10/1/2030 3,085,000 2,988,378
Ohio Water Development Authority,
Pollution Control Facilities Revenue
(Cleveland Electric) 4.60%, 10/1/2030 6,000,000 5,802,060
OKLAHOMA--.5%
Washington County Medical Authority, Revenue
(Jane Phillips Medical Center Project)
5.50%, 11/1/2010 (Insured; Connie Lee) 6,175,000 6,250,644
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
OREGON--.4%
Port Portland International Airport, Revenue
5%, 7/1/2014 (Insured; MBIA) 2,555,000 2,356,706
Multnomah County, COP:
4.50%, 8/1/2014 695,000 606,200
4.50%, 8/1/2015 2,000,000 1,718,840
PENNSYLVANIA--6.6%
Beaver County Insustrial Development Authority, PCR
(Ohio Edison Co. Project) 4.95%, 6/1/2004 7,500,000 6,882,600
Delaware County Industrial Development Authority, PCR
(Peco Energy Co. Project) 5.20%, 4/1/2021 4,000,000 3,971,080
Erie County Hospital Authority, Revenue
(Hamot Health Foundation)
5.375%, 5/15/2010 (Insured; AMBAC) 2,340,000 2,346,248
Lehigh County General Purpose Authority (Wiley House)
9.375%, 11/1/2006 (Prerefunded 11/1/2001) 5,570,000 (d) 6,075,310
Montgomery County Industrial Development Authority,
PCR (Peco Energy Company Project)
5.20%, 10/1/2030 6,000,000 5,961,660
Pennsylvania, COP 5.40%, 7/1/2009 (Insured; AMBAC) 5,000,000 5,013,350
Pennsylvania Economic Development Financing Authority,
RRR (Northampton Generating):
6.75%, 1/1/2007 7,000,000 7,266,280
6.40%, 1/1/2009 11,000,000 11,004,730
6.50%, 1/1/2013 2,000,000 2,017,820
Pennsylvania Higher Educational Facilities Authority,
Health Services Revenue (University of Pennsylvania):
5.60%, Series A, 1/1/2010 10,000,000 9,667,000
5.60%, Series B, 1/1/2010 4,350,000 4,205,145
Philadelphia Hospitals and Higher Education
Facilities Authority, Revenue
(Community Mental Health/Retardation)
8.875%, 6/15/2009 12,090,000 12,778,646
RHODE ISLAND--2.4%
Central Falls Detention Faciliy Corp.,
Detention Facility Revenue
(Donald W. Wyatt Detention):
5.25%, 1/15/2009 1,230,000 1,208,512
5.25%, 1/15/2010 1,290,000 1,258,782
5.25%, 1/15/2011 1,360,000 1,313,787
5.25%, 1/15/2012 1,430,000 1,365,078
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND (CONTINUED)
Rhode Island Health and Educational Building Corp.,
Health Facilities Revenue (San Antoine)
5.50%, 11/15/2009 3,320,000 3,321,162
Hospital Financing Revenue
(Lifespan Obligation Group):
5.75%, 5/15/2007 (Insured; MBIA) 4,805,000 4,998,161
5.75%, 5/15/2008 (Insured; MBIA) 5,560,000 5,768,889
Rhode Island Housing and Mortgage Finance Corp.:
(Homeownership Opportunity) 7.30%, 10/1/2008 4,680,000 4,976,478
(Rental Housing Program):
5.65%, 10/1/2007 2,175,000 2,194,727
5.65%, 10/1/2008 1,350,000 1,359,140
SOUTH CAROLINA--2.7%
Charleston County, Health Facilities Revenue
(Espiscopal Church Project) 5.40%, 4/1/2004 5,000,000 5,005,300
Charleston County, Hospital Facilities Improvement
Revenue (Medical Society Health Project)
5.50%, 10/1/2005 (Insured; MBIA) 7,945,000 8,196,539
Charleston County, RRR (Foster Wheeler)
5%, 1/1/2007 (Insured; AMBAC) 2,685,000 2,669,857
Georgetown County, Pollution Control Facilities Revenue
(International Paper Co. Project) 5.125%, 2/1/2012 3,000,000 2,794,950
Oconee County, PCR (Engelhard Corp. Project)
5.375%, 5/1/2006 6,000,000 6,032,040
Piedmont Municipal Power Agency, Electric Revenue:
6.25%, 1/1/2004 (Insured; FGIC, Escrowed To Maturity) 585,000 620,890
6.25%, 1/1/2004 (Insured; FGIC) 3,465,000 3,627,959
York County, PCR (Bowater, Inc. Project)
7.625%, 3/1/2006 2,900,000 3,134,320
TENNESSEE--.9%
Johnson City Health and Educational Facility Board, HR
(Medical Center Hospital Improvement)
5.125%, 7/1/2011 (Insured; MBIA) 6,720,000 6,624,509
Tennessee Housing Development Agency
(Homeownership Program):
5.20%, 7/1/2010 1,815,000 1,773,219
5.30% 7/1/2011 2,140,000 2,094,611
TEXAS--7.7%
Austin Independent School District:
5.60%, 8/1/2009 (Prerefunded 8/1/2006) 4,590,000 (d) 4,795,770
5.60% 8/1/2009 2,025,000 2,083,199
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
Ennis IDC, Revenue, (Cargill, Inc. Project)
6.15%, 11/1/2003 2,450,000 2,516,616
Gulf Coast Waste Disposal Authority, SWDR
(Quaker Oats Co. Project) 5.70%, 5/1/2006 2,210,000 2,262,885
Harris County Health Facilities Development Corp., HR:
(Memorial Hermann Hospital System Project)
5.50%, 6/1/2012 (Insured; FSA) 8,795,000 8,791,042
(Memorial Hospital System Project)
6%, 6/1/2008 (Insured; MBIA) 3,000,000 3,157,980
Harris County Hospital District, Mortgage Revenue
7.50%, 2/15/2003 (Insured; AMBAC) 7,000,000 7,341,670
Matagorda County Navigation District, PCR
5.333%, 11/1/2001 5,000,000 (a,b) 4,992,350
North Central Health Facility Development Corp.,
Revenue (Baylor Healthcare System):
7.60%, 5/15/2008 11,750,000 (a) 12,387,085
7.60%, 5/15/2008 (Prerefunded 5/15/2002) 1,250,000 (a,d) 1,329,625
North Texas Higher Education Authority,
Student Loan Revenue:
7%, Series B, 4/1/2002 (Insured; AMBAC) 4,250,000 4,370,105
7%, Series E, 4/1/2002 (Insured; AMBAC) 4,250,000 4,370,105
Port Corpus Christi Authority, Nueces County
General Revenue (Union Pacific) 5.125%, 4/1/2009 2,250,000 2,105,280
Rio Grande Consolidated Independent School District,
Public Facilities LR 6.40%, 7/15/2003 4,000,000 4,034,920
Rio Grande Valley Health Facilities Development Corp., HR
(Valley Baptist Medical Center)
6.25%, 8/1/2006 (Insured; MBIA) 5,100,000 5,397,738
South Texas Higher Education Authority,
Student Loan Revenue 5.30%, 12/1/2003 2,390,000 2,430,439
Tarrant County Health Facilities Development Corp.,
Health Systems Revenue:
(Harris Methodist Health Systems) 6%, 9/1/2010 7,725,000 8,292,710
(Health Resources Systems)
5.75%, 2/15/2014 (Insured; MBIA) 5,000,000 5,079,700
Texas State College, Student Loan:
6%, 8/1/2005 2,130,000 2,245,126
6%, 8/1/2006 2,500,000 2,640,825
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH--2.1%
Carbon County, SWDR:
(Sunnyside Cogeneration-A) 6.375%, 8/15/2011 8,450,000 8,292,154
(Sunnyside Cogeneration-B) Zero Coupon, 8/15/2024 2,585,000 428,748
Intermountain Power Agency, Power Supply Revenue,
Special Obligation 6.50%, 7/1/2010 (Insured; MBIA) 5,200,000 5,760,352
Utah Board of Regents, Student Loan Revenue:
6.25%, 11/1/2003 (Insured; AMBAC) 3,000,000 3,144,870
6.35%, 11/1/2004 (Insured; AMBAC) 3,000,000 3,179,910
6.45%, 11/1/2005 (Insured; AMBAC) 3,000,000 3,186,300
VIRGINIA--2.2%
Big Stone Gap Redevelopment and Housing Authority,
Correctional Facility LR
(Wallens Ridge Development Project) 6%, 9/1/2007 4,000,000 4,250,160
Fairfax County Economic Development Authority,
Educational Facilities Revenue
(George Mason University Educational Foundation):
6.50%, 11/15/2002 2,000,000 2,069,560
6.95%, 11/15/2002 5,360,000 5,523,587
Lexington Industrial Development Authority,
Residential Care Facility Revenue
(First Mortgage) 5%, 10/1/2004 5,630,000 5,419,945
Virginia Housing Development Authority,
Commonwealth Mortgage:
6.05%, 1/1/2004 4,400,000 4,483,028
6.15%, 1/1/2005 4,400,000 4,489,408
WASHINGTON--2.8%
Clark County Public Utility District, Electric Revenue:
6.30%, 1/1/2004 (Insured; FGIC) 1,275,000 1,324,546
6.30%, 1/1/2004 (Insured; FGIC, Prerefunded 1/1/2001) 1,885,000 (d) 1,962,662
Washington Health Care Facilities Authority, Revenue
(Sisters of Providence)
5.40%, 10/1/2010 (Insured; AMBAC) 3,000,000 3,014,400
Washington Housing Finance Commission:
SFMR, 6.85%, 7/1/2011 (Insured; FNMA, GNMA) 2,705,000 2,785,934
MFHR (Alderbrook Apartments Project)
4.90% 7/1/2030 (LOC; Bank One, Arizona, N.A.) 7,100,000 6,783,127
Washington, Public Power Supply Systems Revenue
(Nuclear Project Number 1):
7.25%, 7/1/2006 (Insured; FSA) 6,000,000 6,761,820
6%, 7/1/2007 (Insured; AMBAC) 9,720,000 10,317,488
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN--2.4%
Carlton, PCR (Wisconsin Public Service Corp.)
6.125%, 10/1/2005 5,000,000 5,245,100
Nekoosa, PCR (Nekoosa Papers, Inc. Project)
5.35%, 7/1/2015 4,850,000 4,332,262
Wisconsin Health and Educational Facilities Authority, Revenue:
(Aurora Health Care, Inc.):
5%, 8/15/2009 (Insured; MBIA) 4,335,000 4,235,338
5%, 8/15/2010 (Insured; MBIA) 3,955,000 3,828,875
(Aurora Medical Group, Inc.)
6%, 11/15/2011 (Insured; FSA) 3,500,000 3,758,230
(Luther Hospital Project) 6.125%, 11/15/2006 3,500,000 3,648,330
(Wheaton Franciscan Services, Inc.)
6.50%, 8/15/2007 (Insured; MBIA) 3,000,000 3,154,470
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $1,133,649,986) 97.8% 1,144,304,358
CASH RECEIVABLES (NET) 2.2% 26,030,079
NET ASSETS 100.0% 1,170,334,437
The Fund
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
EDR Economic Development Revenue
EIR Environment Improvement
Revenue
FGIC Financial Guaranty
Insurance Company
FNMA Federal National
Mortgage Association
FSA Financial Security Assurance
GNMA Government National
Mortgage Association
HR Hospital Revenue
IDC Industrial Development
Corporation
IDR Industrial Development
Revenue
LOC Letter of Credit
LR Lease Revenue
MBIA Municipal Bond Investors Assurance
Insurance Corporation
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
RRR Resources Recovery Revenue
SFMR Single Family Mortgage Revenue
SWDR Solid Waste Disposal Revenue
VRDN Variable Rate Demand Notes
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 48.4
AA Aa AA 14.5
A A A 15.3
BBB Baa BBB 8.7
BB Ba BB 1.6
B B B 1.8
Not Rated (e) Not Rated (e) Not Rated (e) 9.7
100.0
</TABLE>
(A) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE
PERIODICALLY
(B) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION
NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT NOVEMBER 30, 1999, THESE
SECURITIES AMOUNTED TO $17,143,180 OR 1.5% OF THE NET ASSETS.
(C) NON-INCOME PRODUCING SECURITY; INTEREST PAYMENTS IN DEFAULT.
(D) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 1,133,649,986 1,144,304,35
Cash 425,703
Interest receivable 19,309,501
Receivable for investment securities sold 14,401,938
Receivable for shares of Common Stock subscribed 2,668
Prepaid expenses 24,193
1,178,468,361
- -------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 687,366
Payable for investment securities purchased 6,911,250
Payable for shares of Common Stock redeemed 329,854
Accrued expenses 205,454
8,133,924
- --------------------------------------------------------------------------------
NET ASSETS ($) 1,170,334,437
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 1,161,212,690
Accumulated net realized gain (loss) on investments (1,532,625)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 10,654,372
- -------------------------------------------------------------------------------
NET ASSETS ($) 1,170,334,437
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(300 million shares of $.001 par value Common Stock authorized) 87,844,497
NET ASSET VALUE, offering and redemption price per share-Note 3 (d) ($) 13.32
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended November 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME ($):
Interest Income 34,263,775
EXPENSES:
Management fee--Note 3(a) 3,623,911
Shareholder servicing costs--Note 3(b) 851,780
Custodian fees 42,400
Prospectus and shareholders' reports 35,492
Professional fees 29,580
Directors' fees and expenses--Note 3(c) 28,532
Registration fees 21,427
Loan commitment fees--Note 2 7,671
Miscellaneous 27,169
TOTAL EXPENSES 4,667,962
Less--reduction in management fee due to
undertaking--Note 3(a) (130,402)
NET EXPENSES 4,537,560
INVESTMENT INCOME--NET 29,726,215
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (9,231,978)
Net unrealized appreciation (depreciation) on investments (36,545,210)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (45,777,188)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (16,050,973)
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
November 30, 1999 Year Ended
(Unaudited) May 31, 1999
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 29,726,215 62,693,286
Net realized gain (loss) on investments (9,231,978) 11,626,654
Net unrealized appreciation (depreciation)
on investments (36,545,210) (27,720,053)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS (16,050,973) 46,599,887
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (30,216,470) (62,553,395)
Net realized gain on investments -- (11,801,579)
TOTAL DIVIDENDS (30,216,470) (74,354,974)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 45,470,359 152,479,000
Dividends reinvested 22,143,550 54,958,796
Cost of shares redeemed (116,278,686) (260,941,326)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (48,664,777) (53,503,530)
TOTAL INCREASE (DECREASE) IN NET ASSETS (94,932,220) (81,258,617)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 1,265,266,657 1,346,525,274
END OF PERIOD 1,170,334,437 1,265,266,657
Undistributed investment income--net -- 490,255
- -------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 3,372,016 10,818,392
Shares issued for dividends reinvested 1,647,603 3,895,035
Shares redeemed (8,632,591) (18,514,989)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (3,612,972) (3,801,562)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Six Months Ended
November 30, 1999 Year Ended May 31,
----------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C> <C>
beginning of period 13.83 14.14 13.85 13.75 14.02 13.84
Investment Operations:
Investment income--net .33 .67 .69 .71 .72 .75
Net realized and unrealized
gain (loss) on investments (.50) (.18) .41 .20 (.24) .24
Total from Investment Operations (.17) .49 1.10 .91 .48 .99
Distributions:
Dividends from investment
income--net (.34) (.67) (.69) (.70) (.72) (.75)
Dividends from net realized gain
on investments -- (.13) (.12) (.11) (.03) (.06)
Total Distributions (.34) (.80) (.81) (.81) (.75) (.81)
Net asset value, end of period 13.32 13.83 14.14 13.85 13.75 14.02
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (2.49)(a) 3.53 8.04 6.80 3.44 7.54
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .75(a) .75 .74 .73 .71 .73
Ratio of net investment income
to average net assets 4.91(a) 4.75 4.91 5.10 5.14 5.52
Decrease reflected in above expense
ratios due to undertakings by
the Manager .02(a) .02 .01 -- -- --
Portfolio Turnover Rate 15.26(b) 20.37 40.27 46.67 48.70 42.18
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets,
end of period ($ x 1,000) 1,170,334 1,265,267 1,346,525 1,387,575 1,467,340 1,569,511
</TABLE>
(A) ANNUALIZED.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Intermediate Municipal Bond Fund, Inc. (the "fund") is registered under
the Investment Company Act of 1940, as amended (the "Act"), as a diversified
open-end management investment company. The fund's investment objective is to
provide the maximum amount of current income exempt from Federal income tax as
is consistent with the preservation of capital. The Dreyfus Corporation (the
" Manager" ) serves as the fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon
Financial Corporation. Premier Mutual Fund Services, Inc. is the distributor of
the fund's shares which are sold to the public without a sales charge.
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 are valued each business day
by an independent pricing service (" Service" ) approved by the Board of
Directors. 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.
(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 dis The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
counts 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 receives net earnings credits based on available
cash balances left on deposit.
(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 $500 million
redemption credit facility (the "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. During the period ended
November 30, 1999, the fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .60 of 1% of the value of the
fund' s average daily net assets and is payable
monthly. The Manager had undertaken from June 1, 1999 through November 30, 1999
to reduce the management fee paid by the fund, to the extent that the fund's
aggregate annual expenses, exclusive of taxes, brokerage, interest on
borrowings, commitment fees and extraordinary expenses, exceeded an annual rate
of .75 of 1% of the value of the fund's average daily net assets. The reduction
in management fee, pursuant to the undertaking, amounted to $130,402 during the
period ended November 30, 1999.
(B) Under the Shareholder Services Plan, the fund reimburses Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, an amount not to exceed
an annual rate of .25 of 1% of the value of the fund's average daily net assets
for certain allocated expenses of providing personal services and/or maintaining
shareholder accounts. 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. During the period ended
November 30, 1999, the fund was charged $508,631 pursuant to the Shareholder
Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended November 30, 1999, the fund was charged $242,026 pursuant to the transfer
agency agreement.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $4,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(D) A .10% redemption fee is charged and retained by the fund on shares redeemed
within fifteen days following the date of issuance, including redemptions made
through use of the fund's exchange privilege. During the period ended November
30, 1999, redemption fees retained by the fund amounted to $6,303.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended November 30, 1999, amounted to
$182,701,031 and $242,146,509, respectively.
At November 30, 1999, accumulated net unrealized appreciation on investments was
$10,654,372, consisting of $30,745,187 gross unrealized appreciation and
$20,090,815 gross unrealized depreciation.
At November 30, 1999, 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).
For More Information
Dreyfus Intermediate Municipal Bond Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 947SA9911
