DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus
Short-Intermediate Municipal Bond Fund. For its semi-annual reporting period
ended September 30, 1995, your Fund produced a total return of 3.28%,
including share price changes and dividends.* Income dividends exempt from
Federal personal income taxes of approximately $.288 per share were paid.**
This is equivalent to an annualized tax-free distribution rate per share of
4.46%.***
The Federal Reserve Board relaxed its policy of monetary restraint when
it lowered the Fed Funds rate on July 6, 1995. This reduction ended the
upward pressure on short-term rates which had prevailed since the beginning
of the reporting period. (Despite the monetary restraint that existed,
long-term rates had begun to decline early in the year.) The Fed's policy of
restraint was based on concern about inflation given the strong economic news
then prevailing. But in July these same reports indicated a significant
weakening trend in the economy. The July decline in the Fed Funds rate
signaled that economic growth issues outweighed, for a time, Fed fears of a
resurgence of inflation.
THE ECONOMY
Economic reports indicated lagging home and auto sales and a decline in
new home construction from earlier this year. Furthermore, rising business
inventories (a frequent harbinger of a business slowdown) and weakening
retail sales lent additional credibility to the case for easier credit
conditions. By midyear, jobless claims were also on the rise and corporate
cost reduction programs continued to increase layoffs. But after the Fed
Funds rate was lowered, economic signals became mixed, and inflationary
expectations, subdued. Accordingly, interest rates have stabilized.
More recently, however, economic strength has been reflected in some of the
indicators released. Inflation is moderate, but
various sectors of the economy such as consumer spending and housing appear
to be picking up. While it is currently expected that the stronger numbers
will forestall any immediate easing by the Federal Reserve Board, one should
not rule out the possibility of another Fed move before year end.
A word about inflation: Despite strong economic growth at the beginning
of the reporting period, inflation remained in check. We believe a
continuation of this moderating trend for prices appears likely, particularly
if the economy remains sluggish. This could be good news for bond prices
since easing inflation can result in falling interest rates. Declining
interest rates, often a corollary to slow business conditions, cause bond
prices to rise. Although we strive to maintain a high level of current
Federally tax exempt income for the Fund, we are very concerned with
credit quality, so we are mindful of the potential erosion in bond quality
if the economy slips back into a recession. We follow a policy that stresses
strong credit quality in the portfolio, a policy which seeks to protect bond
values and income streams.
MARKET ENVIRONMENT
The municipal bond market, buffeted by six interest rate hikes by the
Federal Reserve Board in 1994, recovered in 1995. Weaker than expected
December 1994 sales figures caused rates to tumble and this decline persisted
throughout the remainder of the reporting period. This summer's rate cut
confirmed what declining long-term interest rates had indicated all year:
Business conditions were weaker than monetary policymakers had thought. If
economic conditions remain sluggish, and Congress is able to arrive at an
acceptable budget accord, further Fed easing seems likely. We believe this
indicates a rather favorable outlook for bond markets in general. We are
certainly pleased and encouraged by the good performance of late in the bond
market and by the Fund; however, we are wary that this bond market strength
may be counting too much on continued low inflation. Thus, while we remain
fully invested in this improving market, we are alert to the stimulatory
effects of easing monetary policy and are watchful for any signs of
rekindling inflation.
The prospect of tax reform appears to be limiting the enthusiasm for
long-term tax exempt securities. Since April, when
serious flat tax and consumption tax proposals began to surface, the
municipal rally has lagged, resulting in an increase in municipal yields as a
percentage of comparable taxable bond yields. Today, long-term municipal
bonds are yielding nearly 90% of U.S. Treasuries, which is a greater yield
ratio than existed before the onset of talk about tax reform. While it could
be years before an actual change in the tax code is adopted, the market's
reaction so early in the proposal cycle suggests that the ultimate
legislation, if any, may have a less radical effect on the market than
feared.
THE PORTFOLIO
As indicated, while price performance has lagged on a relative basis for
long-term municipal securities, shorter maturity tax exempts have shown
positive relative performance versus the taxable markets and other
municipals. It is likely that the flat tax scenario has generated interest in
the front end of the maturity curve and buoyed prices. In addition, many
issuers have structured their debt with slightly longer serial maturities
adding to this market condition. The portfolio has responded to these changing
yield relationships. In our last letter to shareholders, we indicated a
shortened average maturity of under two years for the Fund. This was due to
the very small incremental income rewards of being at the longer end of our
maturity range. As the Federal Reserve lowered rates, we extended the Fund's
portfolio maturity to take advantage of some price appreciation and to pick
up income in slightly longer securities. The securities purchased have more
attractive yields relative to their taxable counterparts than do the
securities that were sold. We continue to look for these opportunities in the
market and believe it prudent to lock in a portion of the portfolio at the
current yield advantage.
The issuance of new tax exempt bonds continues at a lackluster pace
while, at the same time, a substantial number of outstanding bonds are being
retired. Therefore, our strategies are influenced and their implementations
limited, at times, by the fact that there exists a limited inventory of
securities from which to choose.
The Fund's goal - to provide you with as high a level of current income
exempt from Federal income tax as is consistent with the preservation of
capital - continues to guide our portfolio management decisions. The high
level of volatility exhibited by the market in recent years underscores the
need to maintain a disciplined focus.
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 appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 16, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
***Annualized 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.
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
ALABAMA-.2%
Alabama Higher Education Loan Corp., Student Loan Revenue
6.20%, 3/1/1997......................................................... $ 840,000 $ 858,371
ALASKA-3.3%
Alaska Housing Finance Corp. 4.65%, 12/1/1996............................... 1,400,000 1,410,556
Alaska Student Loan Corp., Student Loan Revenue:
5.50%, 7/1/1996 (Insured; AMBAC)........................................ 3,295,000 3,321,624
4.70%, 7/1/1998......................................................... 3,060,000 3,050,392
5.25%, 7/1/1999 (Insured; AMBAC)........................................ 3,100,000 3,147,151
North Slope Borough Zero Coupon, 6/30/1999 (Insured; MBIA).................. 1,000,000 841,550
ARIZONA-1.4%
Tempe Industrial Development Authority, MFHR, Refunding
(Elliot Grove Apartments) 6.25%, 10/1/1996.............................. 5,000,000 5,008,400
ARKANSAS-.5%
Springdale Residential Housing and Health Care Facilities Board, Revenue
(Springdale Memorial Hospital Project) 5.10%, 10/1/1997................. 1,670,000 1,689,639
CALIFORNIA-10.8%
Alameda County, COP (Financing Project)
6.15%, 9/1/1996 (LOC; Fuji Bank) (a,b).................................. 3,000,000 3,026,070
California Health Facilities Financing Authority, Revenue, Refunding
(Hospital of the Good Samaritan) 6.25%, 9/1/1996........................ 1,560,000 1,582,901
California Statewide Communities Development Authority,
Insured HR, Refunding, COP (Triad Healthcare):
5%, 8/1/1996.......................................................... 2,500,000 2,478,625
5.25%, 8/1/1997....................................................... 2,500,000 2,479,550
Chula Vista, MFHR
(Eucalyptus Grove Project) 5.75%, 11/1/1997 (b)......................... 4,855,000 4,923,844
Orange County, Apartment Development Revenue:
(Villas Aliento Project) 4.50%, 8/15/1997 (LOC; Tokai Bank) (a)......... 5,000,000 4,948,350
(Villias De La Paz) 4.50%, 8/15/1997 (LOC; Tokai Bank) (a).............. 5,000,000 4,948,350
Santa Rosa Housing Authority, MFHR
(Dutton Partners Project) 4.875%, 9/1/1997.............................. 8,750,000 8,754,025
Vallejo Housing Authority, Multi-Family Revenue (Highlands Apartments
Project)
5.75%, 6/1/1996......................................................... 6,000,000 6,007,980
COLORADO-2.0%
Colorado Student Obligation Bond Authority, Student Loan Revenue:
5.40%, 12/1/1995........................................................ 2,250,000 2,254,793
5%, 9/1/1996............................................................ 500,000 501,990
6.20%, 9/1/1996......................................................... 3,300,000 3,361,050
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
COLORADO (CONTINUED)
Colorado Student Obligation Bond Authority, Student Loan Revenue (continued):
5.20%, 9/1/1997......................................................... $ 1,200,000 $ 1,210,848
CONNECTICUT-1.1%
Connecticut, Housing Mortgage Revenue (Chestnut Hill Apartments)
4.60%, 4/1/1997 (LOC; National Australia Bank) (a)...................... 3,935,000 3,940,824
DISTRICT OF COLUMBIA-2.0%
District of Columbia, Refunding:
4.60%, Series C, 12/1/1997.............................................. 2,000,000 1,979,140
4.60%, Series D, 12/1/1997.............................................. 5,250,000 5,195,243
FLORIDA-5.9%
Florida Housing Finance Agency, Multi-Family Housing:
Refunding 6.375%, 10/1/1995............................................. 10,215,000 10,222,151
5.35%, Series E, 6/1/2000............................................... 5,085,000 5,164,123
5.35%, Series F, 6/1/2000............................................... 2,000,000 2,031,120
5.35%, Series G, 6/1/2000............................................... 3,650,000 3,706,794
GEORGIA-1.8%
Development Authority of Burke County, PCR
(Oglethorpe Power Corporation Vogtle Project) 3.95%, 1/1/1999........... 6,660,000 6,496,697
IDAHO-1.2%
Idaho Student Loan Fund Marketing Association Inc., Student Loan Revenue:
5.25%, 4/1/1996 (b)..................................................... 2,165,000 2,153,742
5.25%, 10/1/1996........................................................ 2,160,000 2,144,599
ILLINOIS-3.2%
Glenview, EDR, (Valley Lo Towers II Project) 5.75%, 12/1/1997............... 5,000,000 5,105,800
Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue
Zero Coupon, 6/15/1997 (Insured; AMBAC)................................. 7,035,000 6,545,434
INDIANA-1.0%
Indiana Bond Bank, Revenue (Guarantee - State Revolving Fund Program):
4.60%, 2/1/1996......................................................... 1,200,000 1,202,004
4.80%, 2/1/1997......................................................... 2,245,000 2,256,113
MAINE-3.2%
Maine Educational Loan Marketing Corp., Student Loan Revenue, Refunding:
6.20%, 11/1/1995........................................................ 1,985,000 1,988,236
6.35%, 11/1/1996........................................................ 9,200,000 9,377,376
MASSACHUSETTS-3.3%
Boston 7.75%, 10/1/1995..................................................... 145,000 145,000
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
MASSACHUSETTS (CONTINUED)
Massachusetts Bay Transportation Authority,
Massachusetts General Transportation System:
7.625%, 3/1/2009 (Insured; FSA) (Prerefunded 3/1/1998) (b,c).......... $ 1,000,000 $ 1,096,380
7.75%, 3/1/2011 (Insured; FSA) (Prerefunded 3/1/1998) (b,c)........... 1,000,000 1,099,230
Massachusetts Health and Educational Facilities Authority
(Lahey Clinic Medical Center) 7.625%, 7/1/2018 (Insured; MBIA)
(Prerefunded 7/1/1998) (c)............................................ 1,000,000 1,106,260
Massachusetts Municipal Wholesale Electric Co.,
Power Supply System Revenue 5.20%, 7/1/1998 (d)......................... 5,000,000 5,075,150
New England Education Loan Marketing Corp., Massachusetts Student
Loan Revenue, Refunding 5%, 6/1/1998 (d)................................ 3,400,000 3,419,992
MICHIGAN-1.1%
Michigan Housing Development Authority, Rental Housing Revenue:
5%, 10/1/1999........................................................... 1,915,000 1,932,254
5.15%, 4/1/2000......................................................... 1,975,000 1,985,231
MISSISSIPPI-7.9%
Mississippi Higher Education Assistance Corp., Student Loan Revenue,
Refunding:
5.40%, 1/1/1996......................................................... 4,355,000 4,366,802
5.40%, 7/1/1996......................................................... 13,100,000 13,182,661
5.70%, 1/1/1997......................................................... 1,435,000 1,452,349
5.70%, 7/1/1997......................................................... 2,435,000 2,475,762
4.60%, 9/1/1997......................................................... 7,000,000 7,016,310
MONTANA-.9%
Montana Higher Education Student Assistance Corp., Student Loan Revenue
6%, 6/1/1996............................................................ 3,240,000 3,268,123
NEW JERSEY-2.5%
Atlantic City:
6.30%, 2/1/1996 (b)..................................................... 2,000,000 2,015,440
6.30%, 2/1/1997......................................................... 2,000,000 2,051,620
Camden County Pollution Control Financing Authority,
Solid Waste Resources Recovery Revenue 6.15%, 12/1/1996................. 1,530,000 1,536,166
New Jersey Economic Development Authority, Wastepaper Recycling
Revenue (MPMI Inc. Project) 5.10%, 2/1/1999............................. 3,350,000 3,285,412
NEW MEXICO-.5%
New Mexico Educational Assistance Foundation, Student Loan Revenue
5.10%, 12/1/1996........................................................ 1,700,000 1,714,688
NEW YORK-13.7%
Metropolitan Transportation Authority, Service Contract, Refunding (Transit
Facilities)
5.75%, 7/1/1996......................................................... 1,195,000 1,209,209
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW YORK (CONTINUED)
New York City:
7%, 8/1/1996............................................................ $ 1,000,000 $ 1,020,600
6.80%, 2/1/1997......................................................... 2,590,000 2,682,411
6.80%, 2/1/1997......................................................... 8,710,000 8,944,996
Refunding 7.10%, 2/1/1997............................................... 5,000,000 5,153,500
4.875%, 8/1/1997........................................................ 4,000,000 4,016,120
5.25%, 8/1/1997......................................................... 15,000,000 15,155,850
New York State:
6.625%, 8/1/1996........................................................ 4,990,000 5,094,990
COP (Commissioner General Services Executive Department) 4.90%, 2/1/1997 1,000,000 1,003,270
New York State Medical Care Facilities Finance Agency, Revenue
(Mental Health Services Facilities Improvement)
7.10%, 2/15/1996........................................................ 835,000 844,327
New York State Urban Development Corp., Revenue, Refunding
(Onondaga County Convention Project) 4.875%, 1/1/2000 (d)............... 1,000,000 996,320
Suffolk County, Public Improvement 7.125%, 11/1/1995........................ 3,210,000 3,217,865
OHIO-4.6%
Cuyahoga County, HR 4.375%, 7/15/1996 (e)................................... 16,500,000 16,495,875
PENNSYLVANIA-4.7%
Armstrong County Hospital Authority, HR
(Saint Francis Central Hospital) 5.25%, 11/1/1997 (LOC; Pittsburgh National Bank) (a) 3,100,000 3,147,616
Philadelphia, Gas Works Revenue 5.20%, 7/1/1997............................. 11,845,000 11,994,484
Philadelphia Hospitals and Higher Education Facilities Authority, HR
(Graduate Health System Obligation) 6.40%, 7/1/1996..................... 1,600,000 1,622,784
RHODE ISLAND-1.4%
Rhode Island Housing and Mortgage Finance Corp., Multi-Family Housing,
Refunding
5%, 7/1/2000............................................................ 5,000,000 5,050,150
SOUTH CAROLINA-.8%
South Carolina Education Assistance Authority,
Insured Student Loan Revenue 5.90%, 9/1/1996............................ 3,000,000 3,040,770
SOUTH DAKOTA-1.7%
South Dakota Student Loan Finance Corp., Student Loan Revenue 5.70%, 8/1/1999 6,000,000 6,174,120
TEXAS-10.2%
Bell County Health Facilities Development Corp., Revenue, Refunding
4.72%, 10/1/1998........................................................ 22,700,000 22,512,952
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
TEXAS (CONTINUED)
Brazos Higher Education Authority Inc., Student Loan Revenue, Refunding:
6.20%, 3/1/1997......................................................... $ 4,020,000 $ 4,102,932
5.30%, 12/1/1997........................................................ 1,845,000 1,875,478
4.95%, 6/1/1998......................................................... 2,500,000 2,516,600
Texas Department of Housing and Community Affairs, Multi-Family Revenue,
Refunding
(Dallas Association) 6.25%, 12/1/1995................................... 6,000,000 6,022,800
VIRGINIA-2.3%
Fairfax County Redevelopment and Housing Authority,
Guaranteed Revenue, Refunding (Shenandoah Crossing Apartments)
5.25%, 12/1/1997........................................................ 8,100,000 8,104,049
WASHINGTON-4.4%
Washington, COP (State Equipment) 6%, 10/1/1996............................. 1,750,000 1,777,667
Washington State Public Power Supply System, Revenue, Refunding
(Nuclear Project Number 2) 4.80%, 7/1/1997 (e).......................... 14,000,000 14,057,400
WEST VIRGINIA-1.4%
West Virginia Public Energy Authority, Energy Revenue
(Morgantown Association Project) 5.50%, 1/1/1998 (LOC; Swiss Bank Corp.) (a) 4,860,000 4,960,795
U.S. RELATED-1.0%
Puerto Rico Municipal Finance Agency 5%, 7/1/1998........................... 3,655,000 3,689,795
---------
TOTAL INVESTMENTS
(cost $357,676,798)..................................................... $360,026,010
==========
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
EDR Economic Development Revenue Insurance Corporation
FSA Financial Security Assurance MFHR Multi-Family Housing Revenue
HR Hospital Revenue PCR Pollution Control Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- ----------------- -------------------
<S> <C> <S> <C>
AAA Aaa AAA 15.5%
AA Aa AA 24.6
A A A 40.3
BBB Baa BBB 8.1
BB Ba BB 2.0
F1 MIG1/P1 SP1/A1 7.4
Not Rated(g) Not Rated(g) Not Rated(g) 2.1
-------
100.0%
========
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Wholly held by custodian as collateral for delayed delivery
security.
(c) 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.
(d) Purchased on a delayed delivery basis.
(e) Security 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 September
30, 1995, these securities amounted to $30,553,275 or 8.8% of net assets.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Fund's Board of Trustees to be of
comparable quality to those rated securities in which the Fund may
invest.
(h) At September 30, 1995, the Fund had $87,976,759 (25.3% of net
assets) invested in securities whose payment of principal and interest is
dependent upon revenues generated from education projects and $89,266,800
(25.6% of net assets) invested in securities whose payment of principal
and interest is dependent upon revenues generated from housing projects.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $357,676,798)-see statement..................................... $360,026,010
Interest receivable..................................................... 5,179,160
Receivable for shares of Beneficial Interest sold....................... 17,900
Prepaid expenses........................................................ 42,137
-----------
365,265,207
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 118,673
Due to Distributor...................................................... 28,982
Due to Custodian........................................................ 10,245,846
Payable for investment securities purchased............................. 6,484,064
Accrued expenses........................................................ 118,140 16,995,705
------------ -----------
NET ASSETS.................................................................. $348,269,502
============
REPRESENTED BY:
Paid-in capital......................................................... $352,891,508
Accumulated undistributed investment income-net......................... 43,634
Accumulated net realized capital losses and distributions in excess
of net realized gain on investments................................... (7,014,852)
Accumulated net unrealized appreciation on investments-Note 3........... 2,349,212
----------
NET ASSETS at value applicable to 26,887,503 outstanding shares of
Beneficial Interest, equivalent to $12.95 per share (unlimited number of
$.001 par value shares authorized)...................................... $348,269,502
===========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 9,458,340
EXPENSES:
Management fee-Note 2(a).............................................. $ 911,080
Shareholder servicing costs-Note 2(b)................................. 281,678
Registration fees..................................................... 29,089
Trustees' fees and expenses-Note 2(c)................................. 26,751
Professional fees..................................................... 23,452
Prospectus and shareholders' reports-Note 2(b)........................ 19,635
Custodian fees........................................................ 19,272
Miscellaneous......................................................... 13,875
-----------
1,324,832
Less-reduction in management fee
due to undertaking-Note 2(a)...................................... 26,239
----------
TOTAL EXPENSES.................................................. 1,298,593
------------
INVESTMENT INCOME-NET........................................... 8,159,747
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (250,895)
Net unrealized appreciation on investments.............................. 4,101,163
-------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 3,850,268
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $12,010,015
============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MARCH 31, SEPTEMBER 30, 1995
1995 (UNAUDITED)
--------------- --------------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 22,031,425 $ 8,159,747
Net realized (loss) on investments................................... (6,582,574) (250,895)
Net unrealized appreciation (depreciation) on investments for the period (2,624,093) 4,101,163
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 12,824,758 12,010,015
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................ (22,031,425) (8,116,113)
------------- -------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................ 243,271,400 67,890,886
Dividends reinvested................................................. 18,517,971 6,943,886
Cost of shares redeemed.............................................. (470,073,418) (111,242,725)
------------- -------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS..... (208,284,047) (36,407,953)
------------- -------------
TOTAL (DECREASE) IN NET ASSETS................................. (217,490,714) (32,514,051)
NET ASSETS:
Beginning of period.................................................. 598,274,267 380,783,553
------------- -------------
End of period (including undistributed investment income-net; $43,634 on
September 30, 1995)................................................ $ 380,783,553 $ 348,269,502
=============== =============
SHARES SHARES
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 18,830,292 5,253,176
Shares issued for dividends reinvested............................... 1,436,567 537,233
Shares redeemed...................................................... (36,495,647) (8,610,748)
------------- -------------
NET (DECREASE) IN SHARES OUTSTANDING............................... (16,228,788) (2,820,339)
============= ==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL 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 the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED MARCH 31, SEPTEMBER 30, 1995
---------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
------- ------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.52 $12.63 $12.85 $13.21 $13.02 $12.82
------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net.............. .76 .70 .63 .58 .57 .29
Net realized and unrealized gain (loss)
on investments................... .11 .22 .38 (.18) (.20) .13
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS. .87 .92 1.01 .40 .37 .42
------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net (.76) (.70) (.63) (.58) (.57) (.29)
Dividends from net realized gain
on investments................... -- -- (.02) (.01) -- --
------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS.............. (.76) (.70) (.65) (.59) (.57) (.29)
------- ------- ------- ------- ------- -------
Net asset value, end of period..... $12.63 $12.85 $13.21 $13.02 $12.82 $12.95
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN................ 7.16% 7.50% 8.04% 3.05% 2.93% 6.54%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .59% .72% .75% .74% .70% .71%(1)
Ratio of net investment income to
average net assets............... 6.07% 5.42% 4.76% 4.35% 4.42% 4.47%(1)
Decrease reflected in above expense ratios
due to undertakings by the Manager .26% .07% -- -- -- .01%(1)
Portfolio Turnover Rate............ 66.53% 63.83% 31.80% 34.68% 37.38% 16.25%(2)
Net Assets, end of period (000's Omitted) $76,734 $187,972 $386,464 $598,274 $380,784 $348,270
(1) Annualized.
(2) Not Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL 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. 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 load. 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: 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 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 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.
(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. 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, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $3,787,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1995. The
carryover does not include net realized securities losses from November 1,
1994 through March 31, 1995 which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, 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
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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. The Manager
has undertaken from September 1, 1995 through June 30, 1996 to reduce the
management fee paid by, or reimburse such excess expenses of the Fund, to the
extent that the Fund's aggregate annual expenses (excluding certain expenses
as described above) exceed an annual rate of .65 of 1% of the average daily
value of the Fund's net assets. The reduction in management fee, pursuant to
the undertaking, amounted to $26,239 for the six months ended September 30,
1995.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(B) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, the Fund (a) reimburses the Distributor for payments to
certain Service Agents (a securities dealer, financial institution or other
industry professional) for distributing the Fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, or any affiliate
(collectively "Dreyfus") for advertising and marketing relating to the Fund
and for Servicing at an aggregate annual rate of .10 of 1% of the value of
the Fund's average daily net assets. Each of the Distributor and Dreyfus may
pay Service Agents a fee in respect of the Fund's shares owned by
shareholders with whom the Service Agent has a Servicing relationship or for
whom the Service Agent is the dealer or holder of record. Each of the
Distributor and Dreyfus determine the amounts to be paid to Service Agents to
which it will make payments and the basis on which such payments are made.
The Plan also separately provides for the Fund to bear the costs of
preparing, printing and distributing certain of the Fund's prospectuses and
statements of additional information and costs associated with implementing
and operating the Plan, not to exceed the greater of $100,000 or .005 of 1%
of the Fund's average daily net assets for any full fiscal year. During the
six months ended September 30, 1995, $191,795 was charged to the Fund
pursuant to the Plan.
(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 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $60,050,230 and $85,797,761, respectively, for the six months
ended September 30, 1995, and consisted entirely of long-term municipal
investments.
At September 30, 1995, accumulated net unrealized appreciation on
investments was $2,349,212, consisting of $2,908,899 gross unrealized
appreciation and $ 559,687 gross unrealized depreciation.
At September 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 MUNICIPAL BOND FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Short- Intermediate Municipal Bond Fund, including the statement of
investments, as of September 30, 1995 and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended September 30, 1995. 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
March 31, 1995 and financial highlights for each of the five years in the
period ended March 31, 1995 and in our report dated May 3, 1995, we expressed
an unqualified opinion on such statement of changes in net assets and
financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
October 26, 1995
[Dreyfus lion "d" logo]
DREYFUS SHORT-INTERMEDIATE
MUNICIPAL BOND 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
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. 591SA959
[Dreyfus logo]
Short-Intermediate
Municipal
Bond Fund
Semi-Annual
Report
September 30, 1995
