DREYFUS SHORT-INTERMEDIATE GOVERNMENT FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus
Short-Intermediate Government Fund. For its annual reporting period ended
November 30, 1995, your Fund produced a total return of 11.91% per share. *
Income dividends of approximately $.732 per share were paid, which is
equivalent to a distribution rate per share of 6.61%.**
THE ECONOMY
Modest economic growth and low inflation have spurred a dramatic,
year-long rally in the bond market. In December, the Federal Reserve Board
reduced the Fed Funds rate to 5.5%, the second reduction in 1995.
The economic recovery of the 1990s was productivity-driven. Corporations
implemented extraordinary cost control measures that, while dramatically
improving bottom line earnings, now contribute to the slow rate of employment
growth. Job creation is a significant factor that affects overall consumer
spending, and is a major component of economic activity. The slow pace of job
creation, currently running at the slowest rate of the post-World War II era,
is worrisome. Still, surveys indicate that consumers remain optimistic,
despite indications that their spending is being affected by the slow growth
in disposable income. Indeed, wages and salaries grew less than 3% over the
past year, barely keeping pace with inflation. A consumer-led weakening of
the economy could lead to further Federal Reserve easing of monetary policy.
It was the favorable low inflation environment that allowed the Federal
Reserve to ease the Federal Funds rate twice in 1995. The inflation outlook
can be easily seen in the retail sector, where consumers wait for deep
discounts before buying. The retail sales outlook is bleak at best, most
retailers having turned in sales numbers that were analogous to the weak 1991
season. A possible reason for this disappointment is the high debt load that
consumers are carrying.
One bright area of the economy has been exports. Because of the new
competitiveness of American businesses abroad, the U.S. trade deficit
continues to shrink. In September, the trade deficit with Japan narrowed for
the sixth consecutive month. Exports, while a relatively small component of
overall economic activity in this country, provide an important support for
the job market.
MARKET ENVIRONMENT
Fixed-income securities have enjoyed a dramatic bull market for the past
12 months. Current business sluggishness may result in further Fed easing,
particularly if the Clinton Administration and Congress can arrive at a
meaningful budget agreement. Of course, the prospect of a balanced Federal
budget should be beneficial to the bond market because it means a reduction
in the growth of government securities.
Overall, we remain confident in our optimistic view of the bond market.
We are also cognizant, however, of the stimulatory effect an easing monetary
policy could have, and are watchful for any signs of renewed inflationary
pressures in the economy.
THE PORTFOLIO
Since we were optimistic about the potential for declining interest
rates, we positioned your Fund accordingly by extending the average maturity
out towards, and for a brief time exceeding, three years. Because the Fund
does not use derivatives or any speculative trading techniques, the average
life positioning becomes critical to overall performance. Currently the average
life is at 2.7 years, and should remain between 2.5-3.0 years for the
foreseeable future. While this is not our most bullish stance, it does not
mean we are no longer optimistic. Instead it indicates our awareness of the
potential for disappointing market action. In 1996 there will be increased
Treasury supply, and some uncertainty as to the ability of the market to
absorb it. We feel it is prudent to target a more neutral stance, hence the
targeting of an average portfolio maturity of 2.5-3.0 years.
We have also increased our agency exposure. (The Fund does not use
mortgages or mortgage products.) In the past, when agency paper cheapened in
basis point spread to Treasuries, we added to our positions. As the fiscal
year end approached for the dealer community, some inventory was sold to pare
down the dealers' balance sheets. This caused the cheapening of securities
that we were able to purchase for the Fund.
Lastly, we shortened the Fund's portfolio by decreasing some of our
shortest and more of our longest maturity exposure, and buying the securities
in between. This structure should benefit from a steeper yield curve. We
believe that the yield curve will continue to steepen in 1996.
The high level of volatility exhibited by the market in recent years
underscores the need to maintain a disciplined and long-term focus in
managing your Fund. Our primary task - to earn as high a level of current
income as is consistent with preservation of capital - continues to guide our
portfolio management decisions.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the Fund
and in The Dreyfus Corporation.
Sincerely,
(Gerald E. Thunelius Signature logo)
Gerald E. Thunelius
Portfolio Manager
December 21, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
**Distribution rate per share is based upon dividends per share paid from net
investment income during the period, divided by the net asset value per share
at the end of the period.
DREYFUS SHORT-INTERMEDIATE GOVERNMENT FUND NOVEMBER 30, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
SHORT-INTERMEDIATE GOVERNMENT FUND AND THE MERRILL LYNCH GOVERNMENTS, U.S.
TREASURY, SHORT-TERM (1-2.99 YEARS) INDEX
[Exhibit A
Dollars
$19,075
Dreyfus
Short-Intermediate
Government Fund
$18,675
Merrill Lynch
Governments,
U.S. Treasury,
Short-Term
(1-2.99 Years) Index*
*Source: Merrill Lynch, Pierce, Fenner and Smith Inc.]
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (4/6/87)
NOVEMBER 30, 1995 NOVEMBER 30, 1995 TO NOVEMBER 30, 1995
__________________ __________________ _________________________
<S> <C> <C>
11.91% 7.87% 7.74%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus
Short-Intermediate Government Fund on 4/6/87 (Inception Date) to a $10,000
investment made in the Merrill Lynch Governments, U.S. Treasury, Short-Term
(1-2.99 Years) Index on that date. All dividends and capital gain
distributions are reinvested.
The Fund invests in securities issued or guaranteed by the U.S. Government or
its agencies or instrumentalities and repurchase agreements in respect of
such securities. The maximum remaining maturity of any instrument in the
Fund's portfolio will not exceed three and one-half years. The Fund's
performance shown in the line graph takes into account fees and expenses.
Unlike the Fund, the Merrill Lynch Governments, U.S. Treasury, Short-Term
(1-2.99 Years) Index is an unmanaged performance benchmark for Treasury
securities with maturities of 1-2.99 years; issues in the Index must have par
amounts outstanding greater than or equal to $25 million. The Index does not
take into account charges, fees and other expenses. In past reports, the Fund
has misidentified this Index as the Merrill Lynch Treasury Master Index -
Short-Term. Further information relating to Fund performance, including
expense reimbursements, if applicable, is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE GOVERNMENT FUND
STATEMENT OF INVESTMENTS NOVEMBER 30, 1995
PRINCIPAL
BONDS AND NOTES-99.3% AMOUNT VALUE
____________ ______________
<S> <C> <C>
U.S. GOVERNMENT AGENCIES-12.2%
Federal Home Loan Banks, Notes,
5.84%, 6/22/1998........................................................ $ 10,000,000 $ 10,070,310
Federal Home Loan Mortgage, Deb,:
5.18%, 11/18/1998....................................................... 20,000,000 19,690,240
6.07%, 11/20/1998....................................................... 10,000,000 10,031,100
Federal National Mortgage Association, Global Bonds,
6 1/4%, 10/28/1998...................................................... 30,000,000 30,255,180
______________
70,046,830
______________
U.S. TREASURY NOTES-77.9%
8 7/8%, 11/15/1997...................................................... 3,400,000 3,615,689
8 1/4%, 7/15/1998....................................................... 56,000,000 59,806,264
5 1/4%, 7/31/1998....................................................... 25,250,000 25,135,592
9 1/4%, 8/15/1998....................................................... 89,000,000 97,427,232
4 3/4%, 9/30/1998....................................................... 20,000,000 19,640,620
4 3/4%, 10/31/1998...................................................... 25,000,000 24,527,350
5 1/8%, 11/30/1998...................................................... 21,000,000 20,812,974
5 1/8%, 12/31/1998...................................................... 37,300,000 36,961,988
7%, 4/15/1999........................................................... 102,800,000 107,506,287
6 1/2%, 4/30/1999....................................................... 49,700,000 51,253,125
______________
446,687,121
______________
U.S. TREASURY PRINCIPAL STRIPS-9.2%
Zero Coupon, 11/15/1998................................................ 42,000,000 35,807,100
Zero Coupon, 2/15/1999................................................. 20,000,000 16,811,560
______________
52,618,660
==============
TOTAL BONDS AND NOTES
(cost $562,350,262)..................................................... $569,352,611
==============
SHORT-TERM INVESTMENT-.4%
REPURCHASE AGREEMENT;
Aubrey G. Lanston & Co., 5.85%
Dated 11/30/1995, due 12/1/1995 in the amount of $2,572,418
(fully collateralized by $2,615,000 U.S. Treasury Notes,
4 1/4% due 5/15/1996, value $2,601,925)
(cost $2,572,000)....................................................... $ 2,572,000 $ 2,572,000
==============
TOTAL INVESTMENTS
(cost $564,922,262)..................................................... 99.7% $571,924,611
========= ==============
CASH AND RECEIVABLES (NET).................................................. .3% $ 1,756,034
========= ==============
NET ASSETS ........................................................... 100.0% $573,680,645
========= ==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE GOVERNMENT FUND
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value-See Note 1(b)
(cost $564,922,262)-see statement..................................... $571,924,611
Cash.................................................................... 1,538,162
Interest receivable..................................................... 7,385,485
Receivable for shares of Beneficial Interest subscribed................. 341,826
Prepaid expenses........................................................ 20,199
______________
581,210,283
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 320,302
Payable for shares of Beneficial Interest redeemed...................... 7,066,465
Accrued expenses........................................................ 142,871 7,529,638
________________ ___________
NET ASSETS ................................................................ $573,680,645
================
REPRESENTED BY:
Paid-in capital......................................................... $597,738,822
Accumulated net realized (loss) on investments.......................... (31,060,526)
Accumulated gross unrealized appreciation on investments................ 7,002,349
________________
NET ASSETS at value applicable to 51,880,763 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $573,680,645
================
NET ASSET VALUE, offering and redemption price per share
($573,680,645 / 51,880,763 shares)...................................... $11.06
==========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE GOVERNMENT FUND
STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $38,665,217
EXPENSES:
Management fee-Note 2(a).............................................. $2,614,914
Shareholder servicing costs-Note 2(b)................................. 1,088,848
Custodian fees........................................................ 68,877
Professional fees..................................................... 51,691
Trustees' fees and expenses-Note 2(c)................................. 47,158
Registration fees..................................................... 45,881
Prospectus and shareholders' reports.................................. 22,669
Miscellaneous......................................................... 9,843
____________
TOTAL EXPENSES.................................................... 3,949,881
Less-reduction in management fee due to undertakings-Note 2(a)........ 475,393
_____________
NET EXPENSES...................................................... 3,474,488
_______________
INVESTMENT INCOME-NET............................................. 35,190,729
______________
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on investments-Note 3:
Long transactions..................................................... $1,545,527
Short sale transactions............................................... (73,931)
_____________
NET REALIZED GAIN................................................. 1,471,596
Net unrealized appreciation on investments.............................. 21,397,751
______________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 22,869,347
______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $58,060,076
==============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE GOVERNMENT FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30,
___________________________________________
OPERATIONS: 1994 1995
_____________ ______________
<S> <C> <C>
Investment income-net.................................................. $ 37,163,216 $ 35,190,729
Net realized gain (loss) on investments................................ (32,303,079) 1,471,596
Net unrealized appreciation (depreciation) on investments for the year. (8,196,511) 21,397,751
_____________ ______________
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...... (3,336,374) 58,060,076
_____________ ______________
DIVIDENDS TO SHAREHOLDERS:
From investment income-net............................................. (37,163,216) (35,190,729)
From net realized gain on investments.................................. (2,638,189) __
In excess of net realized gain on investments.......................... (229,043) __
_____________ ______________
TOTAL DIVIDENDS...................................................... (40,030,448) (35,190,729)
_____________ ______________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......................................... 395,989,207 239,557,933
Dividends reinvested................................................... 33,895,545 28,338,016
Cost of shares redeemed................................................ (441,547,884) (213,597,841)
_____________ ______________
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS............................................ (11,663,132) 54,298,108
_____________ ______________
TOTAL INCREASE (DECREASE) IN NET ASSETS.......................... (55,029,954) 77,167,455
NET ASSETS:
Beginning of year...................................................... 551,543,144 496,513,190
_____________ ______________
End of year............................................................ $ 496,513,190 $ 573,680,645
============= ==============
SHARES SHARES
_____________ ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 35,750,303 22,083,238
Shares issued for dividends reinvested................................. 3,081,701 2,610,421
Shares redeemed........................................................ (40,031,369) (19,779,792)
_____________ ______________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING........................ (1,199,365) 4,913,867
============= ==============
See notes to financial statements.
</TABLE>
DREYFUS SHORT-INTERMEDIATE GOVERNMENT 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 year indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
YEAR ENDED NOVEMBER 30,
___________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995
_________ ________ ________ ________ __________
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $11.23 $11.71 $11.58 $11.45 $10.57
_________ ________ ________ ________ __________
INVESTMENT OPERATIONS:
Investment income-net........................ .85 .82 .78 .76 .73
Net realized and unrealized gain (loss) on investments .47 .09 .14 (.82) .49
_________ ________ ________ ________ __________
TOTAL FROM INVESTMENT OPERATIONS........... 1.32 .91 .92 (.06) 1.22
_________ ________ ________ ________ __________
DISTRIBUTIONS:
Dividends from investment income-net......... (.84) (.83) (.78) (.76) (.73)
Dividends from net realized gain on investments -- (.21) (.27) (.06) --
_________ ________ ________ ________ __________
TOTAL DISTRIBUTIONS........................ (.84) (1.04) (1.05) (.82) (.73)
_________ ________ ________ ________ __________
Net asset value, end of year................. $11.71 $11.58 $11.45 $10.57 $11.06
========= ======== ======== ======== ==========
TOTAL INVESTMENT RETURN.......................... 12.25% 8.05% 8.29% (.57%) 11.91%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .49% .35% .40% .47% .66%
Ratio of net investment income to average net assets 7.41% 7.00% 6.75% 6.91% 6.73%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ .30% .42% .35% .30% .09%
Portfolio Turnover Rate...................... 131.69% 225.52% 317.00% 695.60% 387.30%
Net Assets, end of year (000's Omitted)...... $144,215 $333,646 $551,543 $496,513 $573,681
See notes to financial statements.
</TABLE>
DREYFUS SHORT-INTERMEDIATE GOVERNMENT FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
(A) PORTFOLIO VALUATION: Investments in U.S. Government obligations are
valued at the mean between quoted bid and asked prices. Short-term
investments are carried at amortized cost, which approximates value.
(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, including, where applicable, amortization of discount on investments,
is recognized on the accrual basis.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Fund's Manager, subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Fund's custodian and, pursuant
to the terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Fund will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Fund maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with applicable provisions
of the Internal Revenue Code, and to make distributions of taxable income
sufficient to relieve it from substantially all Federal income and excise
taxes.
The Fund has an unused capital loss carryover of approximately
$31,080,000 available for Federal income tax purposes to be applied against
future net securities profits, if any, realized subsequent to November 30,
1995. If not applied, $26,610,000 of the carryover expires in fiscal 2002 and
$4,470,000 of the carryover expires in fiscal 2003.
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 .50 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
DREYFUS SHORT-INTERMEDIATE GOVERNMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Fund's aggregate expenses, exclusive of taxes, interest on borrowings,
brokerage and extraordinary expenses, exceed 1-1\2% of the average value of
the Fund's net assets for any full fiscal year. However, the Manager had
undertaken from December 1, 1994 through July 19, 1995 to reduce the
management fee paid by the Fund, to the extent that the Fund's aggregate
expenses (exclusive of certain expenses as described above) exceeded
specified annual percentages of the Fund's average daily net assets. The
Manager has currently undertaken through November 30, 1996 to reduce the
management fee paid by the Fund, to the extent that the Fund's aggregate
annual expenses (exclusive of certain expenses as described above) exceed an
annual rate of .75 of 1% of the average daily value of the Fund's net assets.
The reduction in management fee, pursuant to the undertakings, amounted to
$475,393 for the year ended November 30, 1995.
The Manager may modify the expense limitation percentages from time to
time, provided that the resulting expense reimbursement would not be less
than the amount required pursuant to the Agreement.
Effective December 1, 1995, Dreyfus Transfer, Inc., a wholly-owned
subsidiary of the Manager, serves as the Fund's Transfer and Dividend
Disbursing Agent.
(B) Pursuant to the Fund's 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 year ended November 30, 1995, the Fund was charged an aggregate of
$654,879 pursuant to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,000 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term
securities, during the year ended November 30, 1995:
<TABLE>
<CAPTION>
PURCHASES SALES
________________ ________________
<S> <C> <C>
Long transactions....................................................... $2,005,732,453 $1,882,970,659
Short sale transactions................................................. 94,839,031 94,765,100
________________ ________________
Total............................................................... $2,100,571,484 $1,977,735,759
================ ================
</TABLE>
The Fund is engaged in short-selling which obligates the Fund to replace
the security borrowed by purchasing the security at current market value.
The Fund would incur a loss if the price of the security increases between
the date of the short sale and the date on which the Fund replaces the
borrowed security. The Fund would realize a gain if the price of the security
declines between those dates. Until the Fund replaces the borrowed security,
the Fund will maintain daily, a segregated account with a broker and custodian,
of cash and/or U.S. Government securities sufficient to cover its short posi-
tion. At November 30, 1995, there were no securities sold short outstanding.
At November 30, 1995, 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 SHORT-INTERMEDIATE GOVERNMENT FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS SHORT-INTERMEDIATE GOVERNMENT FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus Short-Intermediate Government Fund, including the statement of
investments, as of November 30, 1995, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of November 30, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Short-Intermediate Government Fund at November 30, 1995,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
(Ernst & Young LLP, Signature)
New York, New York
January 2, 1996
IMPORTANT TAX INFORMATION (UNAUDITED)
For State individual income tax purposes, the Fund hereby designates
93.93% of the ordinary income dividends paid during its fiscal year ended
November 30, 1995 as attributable to interest income from direct obligations
of the United States government. Such dividends are currently exempt from
taxation for individual income tax purposes in most states, including New
York, California and the District of Columbia.
(Dreyfus lion "d" logo)
DREYFUS SHORT-INTERMEDIATE
GOVERNMENT FUND
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.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 542AR9511
(Dreyfus Logo)
Short-Intermediate
Government
Fund
Annual Report
November 30, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS SHORT-INTERMEDIATE GOVERNMENT FUND
AND THE MERRILL LYNCH GOVERNMENTS, U.S. TREASURY,
SHORT-TERM (1-2.99 YEARS) INDEX
EXHIBIT A:
________________________________________________________________
| | MERRILL LYNCH | DREYFUS |
| | GOVERNMENTS, U.S. | SHORT-INTERMEDIATE |
| PERIOD | TREASURY, SHORT-TERM | GOVERNMENT |
| | (1-2.99 YEARS) INDEX* | FUND |
|----------- | --------------------- | -------------------|
| 4/6/87 | 10,000 | 10,000 |
| 11/30/87 | 10,359 | 10,120 |
| 11/30/88 | 11,047 | 10,768 |
| 11/30/89 | 12,228 | 11,951 |
| 11/30/90 | 13,310 | 13,051 |
| 11/30/91 | 14,819 | 14,650 |
| 11/30/92 | 15,842 | 15,830 |
| 11/30/93 | 16,796 | 17,142 |
| 11/30/94 | 16,915 | 17,044 |
| 11/30/95 | 18,675 | 19,075 |
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* Source: Merrill Lynch, Pierce, Fenner and Smith Inc.
