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 annual reporting period ended
March 31, 1996, your portfolio produced a total return of 5.78%, including
share price changes and interest income.* Income dividends exempt from
Federal personal income taxes of approximately $.579 per share were paid to
shareholders.** This is equivalent to an annualized Federally tax-free
distribution rate per share of 4.47%.***
THE ECONOMY
Fresh signs of economic growth appeared in the first quarter of this
year. There were encouraging reports of strength in the housing market -
sales of new homes and new home construction surged in February. Factory
orders increased and order backlogs rose in January for the fifth consecutive
month. At present, there are indications that the labor market may be
tightening. Employment is rising and initial claims for unemployment
insurance are lessening. Some increases in real wages may result, a possibilit
y well worth noting since worker wages are emerging as a political issue in
this year's election. The surprisingly strong employment figures in February
caused a sharp rise in interest rates. As a result, fixed-income returns for
the first quarter of this year were negative.
Several factors that temporarily depressed economic activity have ended.
With the arrival of spring, the severe winter weather which suppressed
construction and discouraged consumer shopping is over. Additionally, the
17-day strike at two General Motors brake-parts plants has been settled. This
strike had nearly resulted in a complete shutdown of GM North American
manufacturing.
Apparently satisfied with the pace of economic growth, the Federal
Reserve Board left the Federal Funds rate unchanged in March. Over the past
12 months, the Fed has reduced the level of short-term interest rates three
times to spur the sluggish economy, the last reduction occurring on January
31, 1996.
Nevertheless, we are reluctant to paint an overly optimistic business
picture since much economic data still remains mixed. Business capital
spending has been an important stimulant to economic growth over the past few
years, particularly in light of the retrenchment in consumer spending. A
recent survey by the Commerce Department revealed that businesses plan only
modest increases in spending on new buildings and equipment this year
compared to 1995. Overall, the survey indicated that capital spending would
rise only 1.5% compared to last year's growth rate of 8.1%. The survey also
points out a significant divergence between the spending plans of
manufacturing companies and those of retailers and wholesalers. Influenced by
strong export growth, capital spending by manufacturers is estimated to rise
7.2%. Conversely, weak consumer spending has resulted in retailers and
wholesalers cutting their capital spending estimates by 4%. The more cautious
approach to business spending may be an indication that overall economic
growth in 1996 will be modest.
THE MARKET
While surging commodity prices sent longer-term yields higher recently,
weaker than expected gains in March retail sales and a softer consumer
confidence reading for early April helped stabilize the front end of the
yield curve. As a result, the yield curve has steepened, a condition that
lowers the value of long-term bond funds and preserves the value of
shorter-term bond funds such as the Dreyfus Short-Intermediate Municipal Bond
Fund. We think that the bond market is beginning to believe that the recent
backup in interest rates is slowing and that economic growth is not
accelerating at the torrid pace
implied by the most recent employment data. The overall municipal market has
underperformed the taxable market during this time as investors have diverted
more funds to a strong stock market. Municipals are now looking more
attractive, in our opinion, as yields approach a greater proportion of
taxable equivalents, flat-tax prospects diminish, and creditworthiness
questions raised by the Orange County California failure wane as the county
slowly works its way out of bankruptcy.
THE PORTFOLIO
During this time, the three- to five-year sector of the tax exempt market
has become very attractive compared to taxable equivalents, after being
superficially rich for quite some time due to accelerated buying from those
anticipating a flat tax, which would have put municipals and taxables on the
same tax exempt status after a few years. These prospects have now been
discounted and this area of the municipal yield curve has become attractive
again. This is where almost all the new acquisitions of the Fund have been.
To finance these purchases we have sold a number of old bonds that do not
have much time left to maturity and whose yields were lower than those of the
replacement securities. In addition, we have added some pre-refunded bonds
whose yields approach or exceed those of A-rated securities.
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
April 15, 1996
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.
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND MARCH 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
SHORT-INTERMEDIATE
MUNICIPAL BOND FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
[Exhibit A:
Dollars
$20,863
Lehman Brothers
10-Year
Municipal Bond Index*
$16,662
Dreyfus
Short-Intermediate
Municipal Bond Fund
*Source: Lehman Brothers]
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (4/30/87)
MARCH 31, 1996 MARCH 31, 1996 TO MARCH 31, 1996
-------------- --------------- ---------------------
<S> <C> <C>
5.78% 5.44% 5.89%
</TABLE>
Presented above is a comparison of the Fund's historical performance with that
of the Lehman Brothers 10-Year Municipal Bond
Index, a broad-based market Index determined to be most representative of the
market in which the Fund operates and which is publicly available.
The Lehman Brothers 10-Year Municipal Bond Index has been selected because
currently there is no publicly available Index that is truly representative
of the "short-intermediate" municipal bond market. The Fund invests primarily
in short-intermediate municipal securities and maintains a portfolio with a
weighted-average maturity ranging between 2 and 3 years. The Fund's
performance shown in the line graph takes into account fees and expenses.
Unlike the Fund, the Lehman Brothers 10-Year Municipal Bond Index is an
unmanaged total return performance benchmark for the investment-grade 10-year
tax exempt bond market, consisting of municipal bonds with maturities of more
than 8 years and less than 12 years. The Index does not take into account
charges, fees and other expenses.
As a general rule, the longer a bond's maturity, the higher the yield and the
greater the profit potential if bonds are held to maturity. As the Lehman
Brothers Index being used is a 10-Year Index, under normal market conditions
the Index should outperform the Fund's portfolio.
The above graph compares a $10,000 investment made in Dreyfus
Short-Intermediate Municipal Bond Fund on 4/30/87 (Inception Date) to a
$10,000 investment made in the Lehman Brothers 10-Year Municipal Bond Index
on that date. All dividends and capital gain distributions are reinvested.
Past performance is not predictive of future performance. Further information
relating to Fund performance, including expense reimbursements, if
applicable, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
_______ _______
<S> <C> <C>
ALABAMA-.3%
Alabama Higher Education Loan Corp., Student Loan Revenue
6.20%, 3/1/1997......................................................... $ 840,000 $ 849,685
ALASKA-3.1%
Alaska Student Loan Corp., Student Loan Revenue:
4.70%, 7/1/1998......................................................... 3,060,000 3,079,309
5.25%, 7/1/1999 (Insured; AMBAC)........................................ 3,100,000 3,142,284
North Slope Borough:
Zero Coupon, 6/30/1999 (Insured; MBIA).................................. 1,000,000 863,480
Zero Coupon, 6/30/1999 (Insured; MBIA).................................. 4,000,000 3,453,920
ARIZONA-1.5%
Tempe Industrial Development Authority, MFHR, Refunding
(Elliot Grove Apartments) 6.25%, 10/1/1996.............................. 5,000,000 5,010,900
ARKANSAS-.5%
Springdale Residential Housing and Health Care Facilities Board, Revenue
(Springdale Memorial Hospital Project) 5.10%, 10/1/1997................. 1,670,000 1,691,460
CALIFORNIA-9.8%
Alameda County, COP (Financing Project)
6.15%, 9/1/1996 (LOC; Fuji Bank) (a).................................... 3,000,000 3,005,970
California Health Facilities Financing Authority, Revenue, Refunding
(Hospital of the Good Samaritan)
6.25%, 9/1/1996......................................................... 1,560,000 1,574,836
California Statewide Communities Development Authority,
Insured HR, Refunding, COP (Triad Healthcare):
5%, 8/1/1996.......................................................... 2,500,000 2,492,575
5.25%, 8/1/1997....................................................... 2,500,000 2,502,050
Chula Vista, MFHR
(Eucalyptus Grove Project) 5.75%, 11/1/1997............................. 4,825,000 4,876,290
Orange County, Apartment Development Revenue:
(Villas Aliento Project) 4.50%, 8/15/1997 (LOC; Tokai Bank) (a)......... 5,000,000 4,964,250
(Villas De La Paz) 4.50%, 8/15/1997 (LOC; Tokai Bank) (a)............... 5,000,000 4,999,750
Santa Rosa Housing Authority, MFHR
(Dutton Partners Project) 4.875%, 9/1/1997.............................. 8,750,000 8,757,963
COLORADO-1.5%
Colorado Student Obligation Bond Authority, Student Loan Revenue:
5%, 9/1/1996............................................................ 500,000 502,925
6.20%, 9/1/1996......................................................... 3,300,000 3,335,739
5.20%, 9/1/1997......................................................... 1,200,000 1,220,340
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CONNECTICUT-1.2%
Connecticut, Housing Mortgage Revenue (Chestnut Hill Apartments)
4.60%, 4/1/1997 (LOC; National Australia Bank) (a)...................... $ 3,925,000 $ 3,924,254
DISTRICT OF COLUMBIA-2.5%
District of Columbia, Refunding:
4.60%, Series C, 12/1/1997.............................................. 2,000,000 1,987,820
4.60%, Series D, 12/1/1997.............................................. 5,250,000 5,218,028
District of Columbia Redevelopment Land Agency, Special Tax Revenue
(Washington D.C. Sports Arena):
5.10%, 11/1/1998...................................................... 500,000 501,055
5.40%, 11/1/2000...................................................... 750,000 741,878
FLORIDA-5.9%
Florida Housing Finance Agency, Multi-Family Housing:
4.85%, 12/1/1999........................................................ 9,000,000 9,118,620
5.35%, Series E, 6/1/2000............................................... 5,085,000 5,140,681
5.35%, Series F, 6/1/2000............................................... 2,000,000 2,021,900
5.35%, Series G, 6/1/2000............................................... 3,650,000 3,689,968
IDAHO-1.3%
Idaho Student Loan Fund Marketing Association Inc., Student Loan Revenue:
5.25%, 4/1/1996......................................................... 2,165,000 2,164,913
5.25%, 10/1/1996........................................................ 2,160,000 2,155,032
ILLINOIS-3.5%
Glenview, EDR (Valley Lo Towers II Project) 5.75%, 12/1/1997................ 5,000,000 5,090,350
Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue
Zero Coupon, 6/15/1997 (Insured; AMBAC)................................. 7,035,000 6,686,486
LOUISIANA-1.4%
Louisiana Public Facilities Authority, Revenue
(Equipment Leasing-Department of Public Safety):
4.35%, 8/1/1998 (Insured; AMBAC)...................................... 1,590,000 1,593,069
4.60%, 8/1/1999 (Insured; AMBAC)...................................... 1,515,000 1,520,499
4.75%, 8/1/2000 (Insured; AMBAC)...................................... 1,745,000 1,750,322
MASSACHUSETTS-5.2%
Massachusetts Bay Transportation Authority (Massachusetts General Transportation System):
7.625%, 3/1/2009 (Insured; FSA) (Prerefunded 3/1/1998) (b).............. 1,000,000 1,085,700
7.75%, 3/1/2011 (Insured; FSA) (Prerefunded 3/1/1998) (b)............... 1,000,000 1,087,990
Massachusetts Education Loan Authority, Education Loan Revenue
4.75%, 7/1/2000 (Insured; AMBAC)........................................ 1,750,000 1,745,205
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
MASSACHUSETTS (CONTINUED)
Massachusetts Health and Educational Facilities Authority, Revenue:
(Lahey Clinic Medical Center)
7.625%, 7/1/2018 (Insured; MBIA) (Prerefunded 7/1/1998) (b)........... $ 1,000,000 $ 1,093,590
(Capital Asset Program) 7.30%, 10/1/2018 (Insured; MBIA)
(Prerefunded 4/1/2000) (b)............................................ 3,750,000 4,103,213
Massachusetts Municipal Wholesale Electric Co.,
Power Supply System Revenue 5.20%, 7/1/1998............................. 5,000,000 5,094,350
New England Education Loan Marketing Corp., Massachusetts Student
Loan Revenue, Refunding 5%, 6/1/1998.................................... 3,400,000 3,445,832
MICHIGAN-3.5%
Flint Hospital Building Authority, Revenue, Refunding (Hurley Medical
Center):
5.25%, 7/1/1998......................................................... 2,050,000 2,065,416
5.50%, 7/1/1999......................................................... 2,160,000 2,168,726
5.50%, 7/1/2000......................................................... 1,225,000 1,221,680
Greater Detroit, Resource Recovery Authority, Revenue, Refunding
5%, 12/13/2000 (Insured; AMBAC)......................................... 2,500,000 2,533,275
Michigan Housing Development Authority, Rental Housing Revenue:
5%, 10/1/1999 (Insured; MBIA)........................................... 1,915,000 1,929,669
5.15%, 4/1/2000 (Insured; MBIA)......................................... 1,975,000 1,983,275
MISSISSIPPI-3.3%
Mississippi Higher Education Assistance Corp., Student Loan Revenue,
Refunding:
5.70%, 1/1/1997......................................................... 1,435,000 1,457,228
5.70%, 7/1/1997......................................................... 2,435,000 2,486,232
4.60%, 9/1/1997......................................................... 7,000,000 7,066,010
MONTANA-1.0%
Montana Higher Education Student Assistance Corp., Student Loan Revenue
6%, 6/1/1996............................................................ 3,225,000 3,232,385
NEW JERSEY-3.4%
Atlantic City 6.30%, 2/1/1997............................................... 2,000,000 2,044,320
Camden County Pollution Control Financing Authority,
Solid Waste Resources Recovery Revenue 6.15%, 12/1/1996................. 1,530,000 1,533,672
Monroe Township Municipal Utilities Authority, Water and Sewer System
Revenue,
Refunding 6.875%, 2/1/2017 (Insured; MBIA) (Prerefunded 2/1/2000) (b)... 5,000,000 5,442,350
New Jersey Economic Development Authority, Wastepaper Recycling
Revenue (MPMI Inc. Project) 5.10%, 2/1/1999............................. 2,575,000 2,554,864
NEW YORK-21.0%
New York City:
6.80%, 2/1/1997......................................................... 8,710,000 8,932,802
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW YORK (CONTINUED)
New York City (continued):
Refunding 7.10%, 2/1/1997............................................... $ 5,000,000 $ 5,140,200
4.875%, 8/1/1997........................................................ 4,000,000 4,045,520
5.25%, 8/1/1997......................................................... 15,000,000 15,243,150
Refunding 5%, 2/15/2000................................................. 16,000,000 15,960,160
4.85%, 2/15/2000........................................................ 2,410,000 2,391,419
New York State,
COP (Commissioner General Services Executive Department) 4.90%, 2/1/1997 1,000,000 1,009,300
New York State Dormitory Authority, Revenue:
(Department of Health) 4.75%, 7/1/2001.................................. 1,435,000 1,417,837
Lease, Refunding (State University Dormitory Facilities) 4.875%, 7/1/2000 8,665,000 8,662,747
(Mental Health Services Facilities Improvement) 4.50%, 2/15/1999........ 1,930,000 1,928,360
New York State Housing Finance Agency, Revenue, Refunding
(Health Facilities-New York City):
4.85%, 5/1/1999....................................................... 1,080,000 1,075,367
4.85%, 11/1/1999...................................................... 1,360,000 1,353,309
5.15%, 5/1/2000....................................................... 1,140,000 1,137,458
5.15%, 11/1/2000...................................................... 1,430,000 1,426,468
New York State Urban Development Corp., Revenue, Refunding
(Onondaga County Convention Project) 4.875%, 1/1/2000................... 1,000,000 999,760
PENNSYLVANIA-5.0%
Armstrong County Hospital Authority, HR
(Saint Francis Central Hospital) 5.25%, 11/1/1997 (LOC; Pittsburgh
National Bank) (a)...................................................... 3,100,000 3,162,310
Philadelphia, Gas Works Revenue 5.20%, 7/1/1997............................. 11,845,000 12,018,055
Philadelphia Hospitals and Higher Education Facilities Authority, HR
(Graduate Health System Obligation) 6.40%, 7/1/1996..................... 1,600,000 1,610,448
RHODE ISLAND-1.5%
Rhode Island Housing and Mortgage Finance Corp., Multi-Family Housing,
Refunding
5%, 7/1/2000 (Insured; AMBAC)........................................... 5,000,000 5,072,300
SOUTH CAROLINA-.9%
South Carolina Education Assistance Authority,
Insured Student Loan Revenue 5.90%, 9/1/1996............................ 3,000,000 3,029,370
SOUTH DAKOTA-1.8%
South Dakota Student Loan Finance Corp., Student Loan Revenue 5.70%, 8/1/1999 6,000,000 6,143,880
TEXAS-9.1%
Bell County Health Facilities Development Corp., Revenue, Refunding
4.72%, 10/1/1998........................................................ 22,550,000 22,481,899
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
TEXAS (CONTINUED)
Brazos Higher Education Authority Inc., Student Loan Revenue, Refunding:
6.20%, 3/1/1997......................................................... $ 3,865,000 $ 3,952,542
5.30%, 12/1/1997........................................................ 1,845,000 1,883,911
4.95%, 6/1/1998......................................................... 2,500,000 2,531,150
VIRGINIA-2.4%
Fairfax County Redevelopment and Housing Authority,
Guaranteed Revenue, Refunding (Shenandoah Crossing Apartments)
5.25%, 12/1/1997........................................................ 8,100,000 8,109,882
WASHINGTON-3.2%
Washington, COP (State Equipment) 6%, 10/1/1996............................. 1,750,000 1,771,385
Washington State Public Power Supply System, Revenue, Refunding
(Nuclear Project Number 2) 4.80%, 7/1/1997 (c).......................... 9,000,000 9,096,660
WEST VIRGINIA-1.5%
West Virginia Public Energy Authority, Energy Revenue
(Morgantown Association Project) 5.50%, 1/1/1998 (LOC; Swiss Bank Corp.) (a) 4,860,000 4,977,126
U.S. RELATED-4.7%
Commonwealth of Puerto Rico 7.30%, 7/1/2020 (Prerefunded 7/1/2000) (b)...... 10,850,000 12,260,933
Puerto Rico Municipal Finance Agency 5%, 7/1/1998........................... 3,655,000 3,707,631
______
TOTAL INVESTMENTS
(cost $334,954,322)..................................................... $337,536,922
=======
</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
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- ------- ---------------- ------------------
<S> <C> <S> <C>
AAA Aaa AAA 20.4%
AA Aa AA 20.3
A A A 33.3
BBB Baa BBB 13.8
BB Ba BB 2.1
F1 MIG1/P1 SP1/A1 8.0
Not Rated(e) Not Rated(e) Not Rated(e) 2.1
____
100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(c) 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 March 31,
1996, this security amounted to $9,096,660 or 2.7% of net assets.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $334,954,322)-see statement..................................... $337,536,922
Interest receivable..................................................... 4,619,640
Receivable for shares of Beneficial Interest sold....................... 27,549
Prepaid expenses........................................................ 25,869
______
342,209,980
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 137,010
Due to Distributor...................................................... 11,794
Due to Custodian........................................................ 3,875,213
Payable for shares of Beneficial Interest redeemed...................... 28,735
Accrued expenses........................................................ 96,399 4,149,151
______ _____
NET ASSETS ................................................................ $338,060,829
=======
REPRESENTED BY:
Paid-in capital......................................................... $342,172,948
Accumulated undistributed investment income-net......................... 81,352
Accumulated net realized (loss) on investments.......................... (6,776,071)
Accumulated net unrealized appreciation on investments-Note 3........... 2,582,600
______
NET ASSETS at value applicable to 26,063,977 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest
authorized)............................................................. $338,060,829
=======
NET ASSET VALUE, offering and redemption price per share
($338,060,829 / 26,063,977 shares)...................................... $12.97
=======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1996
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $18,269,216
EXPENSES:
Management fee-Note 2(a).............................................. $1,766,204
Shareholder servicing costs-Note 2(b)................................. 537,993
Trustees' fees and expenses-Note 2(c)................................. 59,921
Registration fees..................................................... 54,564
Professional fees..................................................... 50,873
Custodian fees........................................................ 37,546
Prospectus and shareholders' reports-Note 2(b)........................ 36,423
Miscellaneous......................................................... 27,688
_____
TOTAL EXPENSES.................................................... 2,571,212
Less-reduction in management fee
due to undertaking-Note 2(a)...................................... 160,957
_____
NET EXPENSES...................................................... 2,410,255
______
INVESTMENT INCOME-NET............................................. 15,858,961
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (12,114)
Net unrealized appreciation on investments.............................. 4,334,551
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 4,322,437
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 20,181,398
=======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
________________________________
1995 1996
_______ ______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 22,031,425 $ 15,858,961
Net realized (loss) on investments...................................... (6,582,574) (12,114)
Net unrealized appreciation (depreciation) on investments for the year.. (2,624,093) 4,334,551
_______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 12,824,758 20,181,398
_______ ______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................... (22,031,425) (15,777,609)
_______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 243,271,400 159,298,364
Dividends reinvested.................................................... 18,517,971 13,463,701
Cost of shares redeemed................................................. (470,073,418) (219,888,578)
_______ ______
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........ (208,284,047) (47,126,513)
_______ ______
TOTAL (DECREASE) IN NET ASSETS.................................... (217,490,714) (42,722,724)
NET ASSETS:
Beginning of year....................................................... 598,274,267 380,783,553
_______ ______
End of year (including undistributed investment income-net;
$81,352 on March 31, 1996)............................................ $ 380,783,553 $ 338,060,829
======= =======
SHARES SHARES
_______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 18,830,292 12,288,534
Shares issued for dividends reinvested.................................. 1,436,567 1,038,945
Shares redeemed......................................................... (36,495,647) (16,971,344)
_______ ______
NET (DECREASE) IN SHARES OUTSTANDING.................................. (16,228,788) (3,643,865)
======= =======
</TABLE>
See notes to financial statements.
<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 year indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED MARCH 31,
-----------------------------------------------------------
PER SHARE DATA: 1992 1993 1994 1995 1996
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $12.63 $12.85 $13.21 $13.02 $12.82
---- ---- ---- ---- ----
INVESTMENT OPERATIONS:
Investment income-net........................ .70 .63 .58 .57 .58
Net realized and unrealized gain (loss)
on investments............................ .22 .38 (.18) (.20) .15
---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS........... .92 1.01 .40 .37 .73
---- ---- ---- ---- ----
DISTRIBUTIONS:
Dividends from investment income-net......... (.70) (.63) (.58) (.57) (.58)
Dividends from net realized gain on investments -- (.02) (.01) -- --
---- ---- ---- ---- ----
TOTAL DISTRIBUTIONS........................ (.70) (.65) (.59) (.57) (.58)
---- ---- ---- ---- ----
Net asset value, end of year................. $12.85 $13.21 $13.02 $12.82 $12.97
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 7.50% 8.04% 3.05% 2.93% 5.78%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .72% .75% .74% .70% .68%
Ratio of net investment income to average
net assets................................. 5.42% 4.76% 4.35% 4.42% 4.49%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ .07% -- -- -- .05%
Portfolio Turnover Rate...................... 63.83% 31.80% 34.68% 37.38% 44.39%
Net Assets, end of year (000's Omitted)...... $187,972 $386,464 $598,274 $380,784 $338,061
</TABLE>
See notes to financial statements.
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Short-Intermediate Municipal Bond Fund (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified
open-end management investment company. The Fund's investment objective is to
provide investors with as high a level of current income exempt from Federal
income tax as is consistent with the preservation of capital. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A. 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.
(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 $6,660,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1996. If not
applied, $3,787,000 of the carryover expires in fiscal 2003 and $2,873,000 of
the carryover expires in fiscal 2004.
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 value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND 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. The Manager has undertaken
from October 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 (exclusive of certain expenses as described
above) exceed an annual rate of .65 of 1% of the value of the Fund's average
daily net assets. The reduction in management fee, pursuant to the
undertaking, amounted to $160,957 for the year ended March 31, 1996.
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. Both 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. Both 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 year ended March 31, 1996,
$371,751 was charged to the Fund pursuant to the Plan.
Effective December 1, 1995, 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. Such compensation amounted to $38,464 for the period from
December 1, 1995 through March 31, 1996.
(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,
excluding short-term securities, during the year ended March 31, 1996
amounted to $157,965,072 and $206,731,445, respectively.
At March 31, 1996, accumulated net unrealized appreciation on investments
was $2,582,600, consisting of $2,890,284 gross unrealized appreciation and
$307,684 gross unrealized depreciation.
At March 31, 1996, 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
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus Short-Intermediate Municipal Bond Fund, including the statement of
investments, as of March 31, 1996, 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 March 31, 1996 by correspondence with the custodian.
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 Municipal Bond Fund at March 31, 1996,
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 and Young LLP signature logo]
New York, New York
April 29, 1996
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during its fiscal year ended March
31, 1996 as "exempt-interest dividends" (not generally subject to regular
Federal income tax).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1996 calendar year
on Form 1099-DIV which will be mailed by January 31, 1997.
[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
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. 591AR963
[Dreyfus logo]
Short-Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1996
