Dreyfus
Short-Intermediate
Government Fund
SEMIANNUAL REPORT
May 31, 2000
(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
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
8 Statement of Securites Sold Short
9 Statement of Assets and Liabilities
10 Statement of Operations
11 Statement of Changes in Net Assets
12 Financial Highlights
13 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Short-Intermediate Government Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Short-Intermediate
Government Fund, covering the six-month period from December 1, 1999 through May
31, 2000. Inside you'll find valuable information about how the fund was managed
during the reporting period, including a discussion with Gerald Thunelius,
portfolio manager and a member of the Dreyfus Taxable Fixed Income Team that
manages the fund.
Tighter monetary policy adversely affected most but not all sectors of the bond
market over the past six months. This was primarily a result of efforts by the
Federal Reserve Board to forestall a potential reemergence of inflationary
pressures. The Federal Reserve Board raised short-term interest rates three
times during the reporting period. Short-term interest rates were raised by a
total of 1.75 percentage points since June 1999.
While higher interest rates generally led to an erosion of most bond prices,
U.S. Treasury securities represented a notable exception. These direct
obligations of the federal government rose primarily because of reduced supply
amid robust demand from domestic and foreign investors.
We appreciate your confidence over the past six months and we look forward to
your continued participation in Dreyfus Short-Intermediate Government Fund.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
June 15, 2000
DISCUSSION OF FUND PERFORMANCE
Gerald Thunelius, Portfolio Manager
Dreyfus Taxable Fixed Income Team
How did Dreyfus Short-Intermediate Government Fund perform relative to its
benchmark?
For the six-month period ended May 31, 2000, Dreyfus Short-Intermediate
Government Fund produced a total return of 1.86%.(1) By comparison, the fund's
benchmark, the Merrill Lynch Governments, U.S. Treasury, Short-Term (1-3 Years)
Index, produced a total return of 2.08% for the same period.(2)
We attribute the fund's performance to our security selection strategy in a
difficult investment environment. While most bond prices continued to erode as
the Federal Reserve Board (the "Fed") attempted to relieve inflationary
pressures, U.S. Treasury and Government agency securities were subject to their
own political and economic influences. These forces generally benefited the
fund's holdings that are direct obligations of the U.S. Government.
What is the fund's investment approach?
The fund seeks to provide as high a level of current income as is consistent
with the preservation of capital. To pursue this goal, we invest in securities
issued or guaranteed by the U.S. Government or its agencies and in repurchase
agreements that are backed by U.S. Government securities. The fund may invest up
to 35% of its assets in mortgage-related securities issued by U.S. Government
agencies, such as mortgage pass-through securities and collateralized mortgage
obligations ("CMOs"), including stripped mortgage-backed securities. CMOs are
multi-class bonds that are issued by government agencies or private issuers and
are backed by pools of mortgage pass-through securities or mortgage loans
When choosing securities for the fund, we first examine U.S. and global economic
conditions and other market factors to determine the likely
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
direction of long- and short-term interest rates. Using a research-driven
investment process, we then attempt to identify potentially profitable sectors
before they are widely perceived by the market. Finally, we look for underpriced
or mispriced securities within those sectors that, in our opinion, appear likely
to perform well over time.
What other factors influenced the fund's performance?
The fund was adversely influenced by higher interest rates over the past six
months. When the reporting period began on December 1, 1999, investors had
become concerned over strong economic growth and high levels of consumer
spending. In addition there was concern over historically low levels of
unemployment that could rekindle long-dormant inflationary pressures, especially
with rising wages in a tight job market. In an attempt to ease these pressures,
the Fed raised short-term interest rates three times during the reporting
period, causing most bond prices to fall, including many of the fund's holdings.
When added to the three interest-rate hikes implemented before the reporting
period began, the Fed has raised interest rates a total of 1.75 percentage
points since June 1999.
The fund's performance was positively affected by certain political
developments. The investment policies of two U.S. Government agencies, FNMA
("Fannie Mae") and FHLMC ("Freddie Mac") were the subject of criticism from
officials in the U.S. Senate and the Treasury Department. These comments hurt
the performance of FNMA and FHLMC securities, which are indirect obligations of
the U.S. Government, but benefited GNMA ("Ginnie Mae") securities, which are
direct obligations. As investors shifted assets from FNMA and FHLMC securities
to the relative safe haven of GNMA securities, they drove GNMA prices higher.
Because the fund had increased its exposure to GNMA securities, this development
benefited performance.
In addition, the fund was positively affected by its holdings of U.S. Treasury
securities, which provided relatively attractive returns during the reporting
period. This was due to the fact that the Treasury Depart-
ment announced its intention to use a portion of the federal budget surplus to
buy back higher yielding, long-term bonds and because strong tax revenues
reduced the federal government's need to borrow.
What is the fund's current strategy?
During most of the six-month reporting period, we continued to maintain the
fund's average duration -- a measure of sensitivity to changing interest rates
-- at a level that is consistent with the fund's benchmark. This "neutral"
duration management strategy is designed to reduce the level of excess price
volatility from interest-rate changes while enabling us to seek above-average
returns through our sector allocation strategy.
From a sector allocation standpoint, we have increased our holdings of U.S.
Government agency securities -- such as those issued by Government National
Mortgage Association ("Ginnie Mae"). At the same time, we have maintained our
holdings of Federal Home Loan Corporation ("Freddie Mac") and Federal National
Home Mortgage Association ("Fannie Mae") securities. As of May 31, 2000, we have
invested approximately 19% of the fund's assets in inflation-protected
securities such as U.S. Treasury Inflation Protection Securities ("TIPS") and
U.S. Agency Tennessee Valley Authority ("TVA") Valley Indexed Principal
Securities ("VIPS"). We anticipate that they potentially can provide attractive
relative returns if the economy remains strong and interest rates continue to
rise.
June 15, 2000
(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.
(2) SOURCE: BLOOMBERG, L.P. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MERRILL LYNCH GOVERNMENTS, U.S.
TREASURY, SHORT-TERM (1-3 YEARS) INDEX IS AN UNMANAGED PERFORMANCE BENCHMARK FOR
TREASURY SECURITIES WITH MATURITIES OF ONE TO THREE YEARS; ISSUES IN THE INDEX
MUST HAVE PAR AMOUNTS OUTSTANDING GREATER THAN OR EQUAL TO $1 BILLION.
The Fund
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STATEMENT OF INVESTMENTS
May 31, 2000 (Unaudited)
Principal
BONDS AND NOTES--113.5% Amount ($) Value ($)
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U.S. GOVERNMENT--40.8%
U.S. Treasury Bonds:
7.625%, 2/15/2007 10,000,000 10,116,400
8.375%, 8/15/2008 5,000,000 5,215,300
10%, 5/15/2010 7,500,000 8,498,025
10.375%, 11/15/2009 5,000,000 5,672,600
10.75%, 2/15/2003 15,000,000 16,442,850
10.75%, 8/15/2005 21,000,000 24,722,460
11.875%, 11/15/2003 15,000,000 17,347,200
12%, 5/15/2005 10,000,000 12,221,300
12.75%, 11/15/2010 7,500,000 9,508,650
U.S. Treasury Inflation Protection Securities:
3.625%, 7/15/2002 10,000,000 (a) 10,596,597
3.625%, 1/15/2008 16,400,000 (a) 16,728,433
3.875%, 4/15/2029 8,800,000 (a) 9,000,188
U.S. Treasury Notes:
6%, 8/15/2004 2,000,000 1,956,300
6.375%, 4/30/2002 6,000,000 5,961,900
153,988,203
U.S. GOVERNMENT AGENCIES--31.3%
Federal Home Loan Banks:
Notes, 6.75%, 2002 50,000,000 49,588,500
Ser. A-1, Coupon Strips, 0%, 2/25/2003 1,789,000 1,470,390
Federal Home Loan Mortgage,
Notes, 7.375%, 5/15/2003 25,000,000 25,006,750
Federal National Mortgage Association:
Coupon Strips, 0%, 7/24/2001 1,227,000 1,134,977
Principal Strips, 0%, 8/7/2001 6,000,000 5,515,200
Tennessee Valley Authority,
Valley Indexed Principal Securities,
3.375%, 1/15/2007 35,500,000 (a) 35,312,446
118,028,263
U.S. GOVERNMENT AGENCIES/
MORTGAGE-BACKED--41.4%
Federal Home Loan Mortgage:
7.5% 20,000,000 (b) 19,475,000
8% 5,000,000 (b) 4,975,000
REMIC, Mutliclass Mortgage Participation Ctfs.,
Ser. 1978, Cl. PH, 7%, 1/15/2024
(Interest Only Obligation) 3,861,135 (c) 503,154
Structured Pass-Through Ctfs.,
Ser. T-22, Cl. A6, 7.05%, 11/25/2029 5,000,000 4,812,500
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
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U.S. GOVERNMENT AGENCIES/MORTGAGE-BACKED (CONTINUED)
Federal National Mortgage Association:
6%, 10/1/2013 26,639,391 25,041,028
7.5% 5,000,000 (b) 4,856,250
REMIC Trust, Gtd. Pass-Through Ctfs.:
Ser. 1995-W1, Cl. A6, 8.1%, 4/25/2025 4,494,858 4,518,782
Ser. 1997-56, Cl. PM, 7%, 6/18/2026
(Interest Only Obligation) 2,944,851 (c) 748,022
Ser. 1998-49, Cl. MA, 6.5%, 10/17/2005 7,039,862 6,884,246
Government National Mortgage Association I:
7.5% 30,000,000 (b) 29,465,400
8% 30,000,000 (b) 30,056,100
Government National Mortgage Association II,
Adjustable Rate Mortgage,
6.5% 15,000,000 (b) 14,671,875
U.S. Government Gtd. Development,
Participation Ctfs.
(Gtd. By U.S. Small Business Administration),
Ser. 1997-20G, Cl. 1, 6.85%, 7/1/2017 10,807,509 10,314,586
156,321,943
TOTAL BONDS AND NOTES
(cost $431,241,497) 428,338,409
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SHORT-TERM INVESTMENTS--7.9%
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REPURCHASE AGREEMENTS;
UBS Securities, 6.35%
Dated 5/31/2000, due 6/1/2000 in the
amount of $29,970,285 (fully collateralized by
$30,375,000 U.S. Treasury Notes,
6.375%, 3/31/2001 value $31,215,603)
(cost $29,965,000) 29,965,000 29,965,000
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TOTAL INVESTMENTS (cost $461,206,497) 121.4% 458,303,409
LIABILITIES, LESS CASH AND RECEIVABLES (21.4%) (80,835,302)
NET ASSETS 100.0% 377,468,107
(a) PRINCIPAL AMOUNT FOR ACCRUAL PURPOSES IS PERIODICALLY ADJUSTED BASED ON CHANGES TO THE CONSUMER PRICE INDEX.
(b) PURCHASED ON A FORWARD COMMITMENT BASIS.
(c) NOTIONAL FACE AMOUNT SHOWN.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF SECURITIES SOLD SHORT
May 31, 2000 (Unaudited)
Principal
NOTES Amount ($) Value ($)
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U.S. Treasury Notes, 6.5%, 2/15/2010
(proceeds $39,059,297) 38,500,000 39,075,960
SEE NOTES TO FINANCIAL STATEMENTS.
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STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000 (Unaudited)
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments--Note 1(b) 461,206,497 458,303,409
Receivable for investment securities sold 114,407,359
Receivable from brokers for proceeds on securities sold short 39,059,297
Interest receivable 4,103,666
Receivable for shares of Beneficial Interest subscribed 100,935
615,974,666
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 206,318
Cash overdraft due to Custodian 603,563
Payable for investment securities purchased 198,054,731
Securities sold short, at value (proceeds $39,059,297)
--See Statement of Securities Sold Short 39,075,960
Payable for shares of Beneficial Interest redeemed 464,199
Accrued expenses 101,788
238,506,559
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NET ASSETS ($) 377,468,107
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 435,688,507
Accumulated net realized gain (loss) on investments
and securities sold short (55,300,649)
Accumulated net unrealized appreciation (depreciation)
on investments and securities sold short--Note 4(b) (2,919,751)
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NET ASSETS ($) 377,468,107
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
36,526,263
NET ASSET VALUE, offering and redemption price per share ($) 10.33
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2000 (Unaudited)
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INVESTMENT INCOME ($):
INTEREST INCOME 12,573,839
EXPENSES:
Management fee--Note 3(a) 997,075
Shareholder servicing costs--Note 3(b) 332,592
Trustees' fees and expenses--Note 3(c) 29,285
Professional fees 25,957
Custodian fees--Note 3(b) 20,729
Prospectus and shareholders' reports 19,005
Registration fees 14,632
Miscellaneous 11,008
TOTAL EXPENSES 1,450,283
INVESTMENT INCOME--NET 11,123,556
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments:
Long transactions (6,173,915)
Short sale transactions 1,014,247
NET REALIZED GAIN (LOSS) (5,159,668)
Net unrealized appreciation (depreciation) on investments
and securities sold short 1,441,998
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (3,717,670)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 7,405,886
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
May 31, 2000 Year Ended
(Unaudited) November 30,1999
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OPERATIONS ($):
Investment income--net 11,123,556 27,920,852
Net realized gain (loss) on investments (5,159,668) (15,544,701)
Net unrealized appreciation (depreciation)
on investments 1,441,998 (2,139,885)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 7,405,886 10,236,266
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DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (11,195,570) (27,880,155)
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BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 46,508,127 146,416,081
Dividends reinvested 9,462,421 22,936,354
Cost of shares redeemed (109,494,993) (204,640,779)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (53,524,445) (35,288,344)
TOTAL INCREASE (DECREASE) IN NET ASSETS (57,314,129) (52,932,233)
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NET ASSETS ($):
Beginning of Period 434,782,236 487,714,469
END OF PERIOD 377,468,107 434,782,236
Undistributed investment income--net -- 72,014
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CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 4,501,185 13,793,084
Shares issued for dividends reinvested 916,057 2,169,933
Shares redeemed (10,596,594) (19,323,645)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (5,179,352) (3,360,628)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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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
May 31, 2000 Year Ended November 30,
----------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
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PER SHARE DATA ($):
Net asset value,
beginning of period 10.43 10.82 10.82 10.95 11.06 10.57
Investment Operations:
Investment income--net .29 .63 .74 .66 .65 .73
Net realized and unrealized
gain (loss) on investments (.10) (.39) .01 (.13) (.11) .49
Total from Investment Operations .19 .24 .75 .53 .54 1.22
Distributions:
Dividends from investment
income--net (.29) (.63) (.75) (.66) (.65) (.73)
Net asset value, end of period 10.33 10.43 10.82 10.82 10.95 11.06
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TOTAL RETURN (%) 3.71(a) 2.33 7.21 4.93 5.08 11.91
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .73(a) .71 .70 .74 .74 .66
Ratio of net investment income
to average net assets 5.56(a) 6.00 6.85 6.13 5.99 6.73
Decrease reflected in
above expense ratios due
to undertakings by
The Dreyfus Corporation -- -- -- .01 -- .09
Portfolio Turnover Rate 634.48(b) 1,096.12 902.14 818.39 594.44 387.60
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Net Assets, end of period
($ x 1,000) 377,468 434,782 487,714 488,172 569,319 573,681
(a) ANNUALIZED.
(b) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Short-Intermediate Government Fund (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 investors with as high a level of current income 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. ("Mellon"), which is a wholly-owned subsidiary of Mellon Financial
Corporation. Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a
wholly-owned subsidiary of the Manager, became the distributor of the fund's
shares, which are sold to the public without a sales charge. Prior to March 22,
2000, Premier Mutual Fund Services, Inc. was the distributor.
The fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding short-term
investments other than U.S. Treasury Bills) are valued each business day by an
independent pricing service ("Service") approved by the Board of Trustees.
Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service are
valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of securities of comparable quality, coupon, maturity and
type; indications as to values from dealers; and general market conditions.
Short-term investments, excluding U.S. Treasury Bills, are carried at amortized
cost, which approximates value.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(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. Under the terms of the custody agreement, the
fund received net earnings credits of $6,842 during the period ended May 31,
2000 based on available cash balances left on deposit. Interest earned under
this arrangement is included in interest income.
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, if any, 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, 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 the applicable pro-
visions of the 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 $47,171,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1999. This
amount is calculated based on Federal income tax regulations which may differ
from financial reporting in accordance with generally accepted accounting
principles. If not applied, $23,885,000 of the carryover expires in fiscal 2002,
$4,470,000 expires in fiscal 2003, $1,220,000 expires in fiscal 2004, $4,273,000
expires in fiscal 2005 and $13,323,000 expires in fiscal 2007.
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 the prevailing
market rates in effect at the time of borrowings. During the period ended May
31, 2000, 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 .50 of 1% of the value of the
fund's average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses of the fund, exclusive of
taxes, brokerage fees, interest on borrowings, commitment fees and extraordinary
expenses, exceed 1 1/2% of the value of the fund's average daily net assets, the
fund may deduct from payments to be made to the Manager, or the Manager will
bear the amount of such excess expense. During the period ended May 31, 2000,
there was no expense reimbursement pursuant to the Agreement.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(b) Under the Shareholder Services Plan, the fund reimburses DSC 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 May 31, 2000, the fund was charged $179,000 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 May 31, 2000, the fund was charged $96,927 pursuant to the transfer agency
agreement.
The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended May 31, 2000, the fund was
charged $20,729 pursuant to the custody agreement.
(c) Each trustee 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 $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4--Securities Transactions:
(a) The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term
securities, during the period ended May 31, 2000:
Purchases ($) Sales ($)
--------------------------------------------------------------------------------
Long transactions 2,425,689,152 2,373,112,414
Short sale transactions 1,014,536,488 1,039,519,891
TOTAL 3,440,225,640 3,412,632,305
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 or custodian, of cash and/or
U.S. Government securities sufficient to cover the short position. Securities
sold short at May 31, 2000, and their related market values and proceeds are set
forth in the Statement of Securities Sold Short.
(b) At May 31, 2000, accumulated net unrealized depreciation on investments and
securities sold short was $2,919,751, consisting of $1,434,443 gross unrealized
appreciation and $4,354,194 gross unrealized depreciation.
At May 31, 2000, 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).
The Fund
For More Information
Dreyfus Short-Intermediate Government Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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
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