PRESIDENT'S LETTER
Dear Shareholder:
As your Fund ended its semi-annual reporting period on November 30,
1993, the Fund's net asset value was $17.37 per share. Dividends of
approximately $.47 per share have been paid during this period,
representing an annualized distribution rate per share of 5.34% based on
the November 30, 1993 closing price. In addition, we are pleased to report
that all dividends paid from net investment income during this period
were exempt from Federal and Commonwealth of Massachusetts income
taxes, although certain shareholders may be subject to the Federal
Alternative Minimum Tax on some portfolio income.*
As the reporting period began, the U.S. economy continued to exhibit
signs of weakness. In addition, the rate of inflation remained quite low
which also encouraged a continuation of the strong market in fixed-
income securities. In this environment, the municipal market reached
price highs not seen in many years, as interest rates declined. However, as
the reporting period ended, signs of economic strength began to emerge
and, with that, bond prices weakened somewhat as concern arose over
potentially rising inflation. Your Fund was well positioned to perform in
the markets which developed during the reporting period.
Subsequently, declines in oil prices gave renewed confidence to the
low-inflation scenarios which have dominated market thinking for the
past several years, and they contributed to a renewal of the bond rally in
mid-December. This rally did not achieve the high price levels experienced
earlier in the fourth quarter, but nonetheless was substantial. Many
economists believe that the U.S. will return to anemic economic
performance in the first quarter of 1994, which, it is believed, may
relieve inflationary pressures and further bolster bond prices.
However, recent statements by officials of the Federal Reserve
Board have suggested that the Fed will begin to "snug up" rates if
economic growth continues above 3% in the first quarter of 1994. It is
widely understood that Federal Reserve officials are intent on not giving
up gains made against inflation over the past several years. In the long
run, this should bode well for long-term bonds even if rates rise
somewhat in the first quarter due to Fed actions. In addition, the
municipal bond market is in a strong position due to the expectation that
the volume of newly-issued bonds in 1994 will be substantially reduced
just as tax rates are rising.
We have previously reported our very positive view of the
improvement in Commonwealth of Massachusetts finances and overall
management. This may continue to be a source of comfort for bondholders
as we look to 1994.
We have included a current Statement of Investments and recent
financial statements for your review. We greatly appreciate your
investment in the Fund and look forward to serving your investment needs
in the future.
Very truly yours,
Richard J. Moynihan
President
December 22, 1993
New York, N.Y.
* Capital gains, if any, are generally subject to Federal, State and local
taxes.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS TAX EXEMPT BOND FUND
STATEMENT OF INVESTMENTS NOVEMBER 30, 1993 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS-91.9% AMOUNT VALUE
------------ ------------
MASSACHUSETTS-84.8%
<S> <C> <C>
City of Boston:
6.75%, 7/1/2011 (Insured; MBIA).................................................. $ 2,500,000 $ 2,774,050
6.50%, 7/1/2012 (Insured; AMBAC)................................................. 3,000,000 3,286,050
Boston City Hospital, Revenue, Refunding:
5.75%, 2/15/2013 (Insured; FHA).................................................. 2,000,000 1,986,000
5.75%, 2/15/2023 (Insured; FHA).................................................. 3,500,000 3,494,680
Boston-Mount Pleasant Housing Development Corp., MFHR,
Refunding 6.75%, 8/1/2023 (Insured; FHA)......................................... 1,700,000 1,782,637
Boston Water and Sewer Commission, Revenue 6%, 11/1/2021 (Insured; FGIC)................. 4,000,000 4,137,160
Commonwealth of Massachusetts:
Consolidated Loan:
6%, 6/1/2011............................................................. 3,500,000 3,625,930
6%, 7/1/2012............................................................. 2,000,000 2,052,500
Refunding:
5.25%, 2/1/2008.......................................................... 1,500,000 1,493,925
6%, Series A, 8/1/2012................................................... 2,000,000 2,052,900
6%, Series B, 8/1/2012 (Insured; FGIC)................................... 1,755,000 1,806,913
Massachusetts Bay Transportation Authority:
6.40%, 3/1/2015 (Guaranteed; Commonwealth of Massachusetts)...................... 3,000,000 3,170,760
General Transportation System 6.10%, 3/1/2023.................................... 2,500,000 2,608,100
Refunding 6.20%, 3/1/2016........................................................ 1,225,000 1,327,545
Massachusetts Education Loan Authority, Education Loan Revenue:
7.55%, 1/1/2002 (Insured; MBIA).................................................. 940,000 1,010,462
8%, 6/1/2002 (LOC; Rabobank Nederland) (a)....................................... 810,000 884,228
Massachusetts Health and Educational Facilities Authority, Revenue:
(Addison Gilbert Hospital) 9.25%, 7/1/2014....................................... 1,045,000 1,149,082
(Amherst College) 6.375%, 11/1/2019.............................................. 1,000,000 1,078,280
(Berklee College of Music) 6.875%, 10/1/2021 (Insured; MBIA)..................... 4,380,000 4,905,425
(Boston University) 6%, 10/1/2022 (Insured; MBIA)................................ 1,175,000 1,223,069
(Harvard University) 5.50%, 12/1/2015............................................ 3,000,000 3,051,990
(Holyoke Hospital) 9.50%, 7/1/2015............................................... 1,500,000 1,634,370
(Jordan Hospital) 7.85%, 8/15/2028 (Insured; FHA, Prerefunded 8/15/1998) (b)..... 3,385,000 3,868,107
(Lahey Clinic Medical Center):
5.625%, 7/1/2015 (Insured; MBIA)......................................... 6,800,000 6,831,144
5.375%, 7/1/2023 (Insured; MBIA)......................................... 5,600,000 5,410,664
(Massachusetts General Hospital):
6.25%, 7/1/2020 (Insured; AMBAC)......................................... 3,500,000 3,750,390
Refunding 6%, 7/1/2015 (Insured; AMBAC).................................. 2,000,000 2,100,480
(Mclean Hospital) 6.50%, 7/1/2010 (Insured; FGIC)................................ 1,000,000 1,093,170
(New England Medical Center Hospitals) 6.50%, 7/1/2012 (Insured; FGIC)........... 1,000,000 1,091,710
(Refunding-Milton Hospital) 7%, 7/1/2016 (Insured; MBIA)......................... 1,000,000 1,139,360
(Williams College) 5.50%, 7/1/2017............................................... 2,000,000 1,992,000
(Youville Hospital):
8.875%, 8/1/2004 (Insured; FHA).......................................... 1,295,000 1,445,686
9.10%, 8/1/2015 (Insured; FHA)........................................... 2,030,000 2,266,130
DREYFUS MASSACHUSETTS TAX EXEMPT BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1993 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
MASSACHUSETTS (CONTINUED)
Massachusetts Housing Finance Agency, Revenue:
Housing Projects, Refunding:
6.15%, 10/1/2015......................................................... $ 3,365,000 $ 3,475,608
6.375%, 4/1/2021......................................................... 3,000,000 3,128,880
Multi-Family Residential Housing 9.60%, 8/1/2022................................. 1,810,000 1,847,069
Residential Development 6.25%, 11/15/2012 (Collateralized; FNMA)................. 4,100,000 4,302,212
Massachusetts Industrial Finance Agency, Revenue:
Electrical Utility (Nantucket Electric Co.) 8.50%, 3/1/2016...................... 3,000,000 3,338,370
(Refunding-Harvard Community Health) 8.125%, 10/1/2017........................... 4,000,000 4,540,520
(Refunding-Holy Cross College):
6%, 11/1/2002............................................................ 400,000 435,380
6.375%, 11/1/2015........................................................ 2,000,000 2,183,680
Massachusetts Municipal Wholesale Electric Co., Power Supply System Revenue, Refunding:
6.40%, 7/1/2002.................................................................. 400,000 437,932
6.625%, 7/1/2018................................................................. 3,500,000 3,754,520
6.125%, 7/1/2019................................................................. 2,500,000 2,547,925
Massachusetts Port Authority, Revenue:
6%, 7/1/2013..................................................................... 2,050,000 2,135,054
9.375%, 7/1/2013................................................................. 325,000 358,153
9.375%, 7/1/2015 (Prerefunded 7/1/1995) (b)...................................... 675,000 752,436
6%, 7/1/2023..................................................................... 5,000,000 5,168,450
Special Project (Harborside Hyatt) 10%, 3/1/2026................................. 8,000,000 8,962,880
Massachusetts Water Resources Authority:
5.25%, 3/1/2013.................................................................. 4,550,000 4,342,747
6.50%, 12/1/2019 (Prerefunded 12/1/2001)(b)...................................... 2,750,000 2,959,358
5.75%, 12/1/2021................................................................. 6,000,000 5,983,380
New Bedford 5.75%, 3/1/2006.............................................................. 1,565,000 1,585,611
New England Education Loan Marketing Corp., Student Loan Revenue 6.90%, 11/1/2009........ 3,000,000 3,267,690
City of Quincy, Revenue (Quincy City Hospital) 7.875%, 1/15/2016 (Insured; FHA).......... 2,400,000 2,662,200
Town of Southbridge 6.375%, 1/1/2012 (Insured; AMBAC).................................... 1,000,000 1,079,850
Southern Berkshire Regional School District, Refunding
5.375%, 4/15/2010 (Insured; MBIA)................................................ 2,285,000 2,293,523
Worcester, IDR (National Envelope Corp. Project),
8%, 12/1/2004 (LOC; Manufacturers Hanover Trust Co.) (a)......................... 4,000,000 4,395,000
U.S. RELATED-7.1%
Guam Airport Authority, Revenue 6.70%, 10/1/2023......................................... 3,000,000 3,225,030
Puerto Rico Electric Power Authority, Power Revenue 6.25%, 7/1/2017...................... 2,000,000 2,094,620
Puerto Rico Telephone Authority Revenue Refunding 5.40%, 1/1/2008........................ 4,000,000 4,016,320
Virgin Islands Water and Power Authority, Electric System Revenue 7.40%, 7/1/2011........ 3,450,000 3,935,036
------------
TOTAL MUNICIPAL BONDS (cost $159,755,896)................................................ $170,734,331
============
DREYFUS MASSACHUSETTS TAX EXEMPT BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1993 (UNAUDITED)
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS-8.1% AMOUNT VALUE
------------ ------------
Massachusetts Health and Educational Facilities Authority, Revenue, VRDN:
(Harvard University) 5.125% (c).................................................. $ 5,000,000 $ 5,000,000
(Saint Elizabeths) 2.48% (c)..................................................... 10,000,000 10,000,000
------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $15,000,000)................................ $ 15,000,000
============
TOTAL INVESTMENTS-100.0%
(cost $174,755,896).............................................................. $185,734,331
============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
FGIC Financial Guaranty Insurance Corporation MBIA Municipal Bond Insurance Association
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
FNMA Federal National Mortgage Association VRDN Variable Rate Demand Notes
IDR Industrial Development Revenue
</TABLE>
SUMMARY OF COMBINED RATINGS
FITCH (d) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- ------- ----------------- -------------------
AAA Aaa AAA 41.5%
AA Aa AA 9.5
A A A 30.5
BBB Baa BBB 7.1
F1 P1 A1 2.7
Not Rated Not Rated Not Rated 8.7
------
100.0%
======
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) 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 tax-exempt issue and to retire the bonds in full
at the earliest refunding date.
(c) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest rates.
(d) Fitch currently provides creditworthiness information for a limited
amount of investments.
See independent accountants' review report and notes to financial
statements.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS TAX EXEMPT BOND FUND
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1993 (UNAUDITED)
ASSETS:
<S>
Investments in securities, at value <C> <C>
(cost $174,755,896)-see statement................................................... $185,734,331
Interest receivable.................................................................... 3,495,462
Prepaid expenses....................................................................... 17,890
------------
189,247,683
LIABILITIES:
Due to The Dreyfus Corporation......................................................... $ 92,953
Due to Custodian....................................................................... 1,239,796
Payable for shares of Beneficial Interest redeemed..................................... 102,425
Accrued expenses....................................................................... 47,457 1,482,631
---------- ------------
NET ASSETS............................................................................... $187,765,052
============
REPRESENTED BY:
Paid-in capital........................................................................ $171,983,891
Accumulated undistributed net realized gain on investments............................. 4,802,726
Accumulated net unrealized appreciation on investments-Note 3.......................... 10,978,435
------------
NET ASSETS at value applicable to 10,808,530 outstanding shares of
Beneficial Interest, equivalent to $17.37 per share
(unlimited number of $.01 par value shares authorized)................................. $187,765,052
============
STATEMENT OF OPERATIONS SIX MONTHS ENDED NOVEMBER 30, 1993 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME........................................................................ $ 5,802,986
EXPENSES:
Management fee-Note 2(a)............................................................. $ 567,296
Shareholder servicing costs-Note 2(b)................................................ 126,971
Professional fees.................................................................... 27,357
Prospectus and shareholders' reports................................................. 9,903
Custodian fees....................................................................... 9,515
Trustees' fees and expenses-Note 2(c)................................................ 6,328
Registration fees.................................................................... 3,671
Miscellaneous........................................................................ 8,668
----------
TOTAL EXPENSES................................................................ 759,709
------------
INVESTMENT INCOME-NET......................................................... 5,043,277
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3.............................................. $ 617,046
Net unrealized appreciation on investments........................................... 3,340,929
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS.............................. 3,957,975
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................................... $ 9,001,252
============
See independent accountants' review report and notes to financial
statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS TAX EXEMPT BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MAY 31, NOVEMBER 30, 1993
1993 (UNAUDITED)
------------ ------------
OPERATIONS:
<S> <C> <C>
Investment income-net.................................................................. $ 10,022,090 $ 5,043,277
Net realized gain on investments....................................................... 6,751,188 617,046
Net unrealized appreciation on investments for the period.............................. 1,523,402 3,340,929
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................ 18,296,680 9,001,252
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net.................................................................. (9,992,814) (5,123,766)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......................................................... 48,849,342 18,151,534
Dividends reinvested................................................................... 7,691,333 3,908,841
Cost of shares redeemed................................................................ (38,304,055) (21,773,816)
------------ ------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........................ 18,236,620 286,559
------------ ------------
TOTAL INCREASE IN NET ASSETS..................................................... 26,540,486 4,164,045
NET ASSETS:
Beginning of period.................................................................... 157,060,521 183,601,007
------------ ------------
End of period (including undistributed investment income-net;
$80,489 on May 31, 1993)............................................................ $183,601,007 $187,765,052
============ ============
SHARES SHARES
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................................ 2,946,281 1,044,525
Shares issued for dividends reinvested................................................. 462,681 224,626
Shares redeemed........................................................................ (2,308,690) (1,253,141)
------------ ------------
NET INCREASE IN SHARES OUTSTANDING.................................................. 1,100,272 16,010
============ ============
See independent accountants' review report and notes to financial
statements.
</TABLE>
DREYFUS MASSACHUSETTS TAX EXEMPT BOND FUND
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 information provided in the Fund's
financial statements.
<TABLE>
<CAPTION>
YEAR ENDED MAY 31, SIX MONTHS ENDED
-------------------------------------------------- NOVEMBER 30, 1993
PER SHARE DATA: 1989 1990 1991 1992 1993 (UNAUDITED)
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $15.22 $15.66 $15.43 $15.59 $16.20 $17.01
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net................................... 1.09 1.08 1.06 1.01 .97 .46
Net realized and unrealized gain (loss) on investments.. .44 (.23) .16 .60 .81 .37
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS..................... 1.53 .85 1.22 1.61 1.78 .83
------ ------ ------ ------ ------ ------
DISTRIBUTIONS;
Dividends from investment income-net.................... (1.09) (1.08) (1.06) (1.00) (.97) (.47)
------ ------ ------ ------ ------ ------
Net asset value, end of period.......................... $15.66 $15.43 $15.59 $16.20 $17.01 $17.37
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 10.39% 5.58% 8.20% 10.62% 11.27% 9.81%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. .83% .83% .81% .84% .81% .80%(1)
Ratio of net investment income to average net assets.... 7.06% 6.92% 6.87% 6.30% 5.83% 5.33%(1)
Decrease reflected in above expense ratios due to
undertakings by the Manager.......................... .04% -- -- -- -- --
Portfolio Turnover Rate................................. 18.05% 55.02% 49.73% 68.07% 85.29% 10.48%(2)
Net Assets, end of period (000's Omitted)............... $ 99,108 $107,861 $120,540 $157,061 $183,601 $187,765
- ------------------
(1) Annualized.
(2) Not annualized.
See independent accountants' review report and notes to financial
statements.
</TABLE>
DREYFUS MASSACHUSETTS TAX EXEMPT BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a non-diversified open-end management investment company.
Dreyfus Service Corporation ("Distributor") acts as the exclusive
distributor of the Fund's shares, which are sold to the public without a
sales charge. The Distributor is a wholly-owned subsidiary of The Dreyfus
Corporation ("Manager").
(A) PORTFOLIO VALUATION: The Fund's investments are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices in the
judgment of the Service are readily available and are representative of
the bid side of the market 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, when
appropriate, discounts on investments, is earned from settlement date and
recognized on the accrual basis. Securities purchased or sold on a when-
issued or delayed-delivery basis may be settled a month or more after the
trade date.
The Fund follows an investment policy of investing primarily in
municipal obligations of one state. Economic changes affecting the state
and certain of its public bodies and municipalities may affect the ability
of issuers within the state to pay interest on, or repay principal of,
municipal obligations held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to
declare dividends daily from investment income-net. Such dividends are
paid monthly. Dividends from net realized capital gain are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the
Internal Revenue Code. To the extent that net realized capital gain can be
offset by capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax
exempt dividends, by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from all, or substantially all, Federal income
taxes.
NOTE 2-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 average daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses, exceed 1-1/2% of the
average value of the Fund's net assets for any full fiscal year. There was
no expense reimbursement for the six months ended November 30, 1993.
DREYFUS MASSACHUSETTS TAX EXEMPT BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses the Distributor an amount not to exceed an annual rate of .25
of 1% of the value of the Fund's average daily net assets for servicing
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
six months ended November 30, 1993, the Fund was charged an aggregate
of $53,002 pursuant to the Shareholder Services Plan.
(C) Certain officers and trustees of the Fund are "affiliated
persons," as defined in the Act, of the Manager and/or the Distributor.
Each trustee who is not an "affiliated person" receives an annual fee of
$1,500 and an attendance fee of $250 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger providing for the merger of the Manager with a subsidiary
of Mellon Bank Corporation ("Mellon").
Upon closing of the merger, it is planned that the Manager will
retain its New York headquarters and will be a separate subsidiary within
the Mellon organization. It is expected that the Manager's management
team and mutual fund managers will remain in place, and the Dreyfus
mutual funds will be operated in the same manner as they are currently.
Following the merger, the Manager will be either a direct or indirect
subsidiary of Mellon, whose principal banking subsidiary is Mellon Bank,
N.A. Closing of this merger is subject to a number of contingencies,
including the receipt of certain regulatory approvals and the approvals of
the stockholders of the Manager and of Mellon. The merger is expected to
occur in mid-1994, but could occur significantly later.
Because the merger will constitute an "assignment" of the Fund's
Management Agreement with the Manager under the Investment Company
Act of 1940, and thus a termination of such Agreement, the Manager will
seek prior approval from the Fund's Board and shareholders.
NOTE 3-SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $49,148,259 and
$38,372,093, respectively, for the six months ended November 30, 1993,
and consisted entirely of municipal bonds and short-term municipal
investments.
At November 30, 1993, accumulated net unrealized appreciation on
investments was $10,978,435, consisting of $11,037,468 gross
unrealized appreciation and $59,033 gross unrealized depreciation.
At November 30, 1993, 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 MASSACHUSETTS TAX EXEMPT BOND FUND
REVIEW REPORT OF ERNST & YOUNG, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS MASSACHUSETTS TAX EXEMPT BOND FUND
We have reviewed the accompanying statement of assets and
liabilities of Dreyfus Massachusetts Tax Exempt Bond Fund, including the
statement of investments, as of November 30, 1993, and the related
statements of operations and changes in net assets and financial
highlights for the six month period ended November 30, 1993. These
financial statements and financial highlights are the responsibility of the
Fund's management.
We conducted our review in accordance with standards established
by the American Institute of Certified Public Accountants. A review of
interim financial information consists principally of applying analytical
procedures to financial data, and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope than
an audit conducted in accordance with generally accepted auditing
standards, which will be performed for the full year with the objective of
expressing an opinion regarding the financial statements and financial
highlights taken as a whole. Accordingly, we do not express such an
opinion.
Based on our review, we are not aware of any material modifications
that should be made to the interim financial statements and financial
highlights referred to above for them to be in conformity with generally
accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year
ended May 31, 1993 and financial highlights for each of the five years in
the period ended May 31, 1993 and in our report dated July 12, 1993, we
expressed an unqualified opinion on such statement of changes in net
assets and financial highlights.
(Ernst & Young Signature Logo)
New York, New York
January 4, 1994
(Dreyfus Lion Logo)
Dreyfus Massachusets
Tax Exempt Bond Fund
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
110 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 267SA9311
(Dreyfus Logo)
DREYFUS
MASSACHUSETTS
TAX EXEMPT
BOND FUND
SEMI-ANNUAL
REPORT
NOVEMBER 30, 1993
(Dreyfus "Lion" Logo)
