DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus
Short-Intermediate Municipal Bond Fund for the six-month period ended
September 30, 1997. Your Fund produced a total return, including share price
changes and dividend income generated, of 3.15%,* and an annualized tax-free
distribution rate per share of 4.18%.**
THE ECONOMY
Virtually ideal economic conditions prevailed over the reporting period.
Robust growth in the first half of 1997, the lowest unemployment rate since
the early 1970s and measures of inflation at 30-year lows combined to spur
consumer confidence to record high ground. Businesses were similarly
optimistic: government reports showed that business investment in new
equipment during the reporting period was at its fastest pace in 14 years.
The question is, how long can this favorable economic scenario continue
before inflation rekindles or, more to the point, before the Federal Reserve
Board (the "Fed") embarks on a policy of monetary restraint to dampen
possible future inflationary excess? Traditionally, the Fed has acted to
contain inflation long before it could spread throughout the economy, and Fed
Chairman Alan Greenspan is a staunch inflation-fighter. Yet there are few
traditional signs of potential inflationary excess to battle against. The
upward creep of factory operating rates in response to surging industrial
production is one, the tight labor market is another. With the unemployment
rate so low, there is concern that employers will eventually raise wages to
attract workers, resulting in higher prices as increased labor costs are
passed along to consumers. So far, there has been a remarkable absence of
wage and price pressures.
There are few signs that broader measures of inflation are accelerating.
The economy grew at a 4.1% rate over the first six months of this year, a
pace that in other times would have resulted in rumblings of inflationary
pressures. Until its modest rise in September, the Producer Price Index had
an unprecedented series of seven straight monthly declines. The Consumer
Price Index rose at a 1.6% annual rate for the first eight months of the
year, a rate less than half the 3.3% rise for the comparable period in 1996.
Because of the lack of inflation, the Fed has been willing to tolerate
strong economic growth without tightening monetary policy. The Federal Open
Market Committee (FOMC), the policy-making arm of the Fed, has raised
interest rates just once in more than two years, a period roughly coinciding
with the surge of growth in the economy. The last increase in short-term
interest rates came on March 25, 1997 when the FOMC increased the Federal
Funds rate by a modest one-quarter of a percentage point to 5.50%. (The
Federal Funds rate is the rate of interest that banks charge one another for
overnight loans.)
In addition, the Fed expected some slowdown throughout the 18-month
economic resurgence, yet demand remained strong throughout. However, the
latest revision of the second-quarter economic growth rate showed a
considerable buildup in business inventories. A rise in inventories could
trigger a subsequent slowdown in the economy if companies cut production in
order to work off unsold backlogs. Nevertheless, it is possible that the
inherent momentum in the economy combined with more vigorous consumer spending
in the third quarter (retail sales showed renewed strength over the summer)
could absorb these inventories without a reduction in output. We continue to
remain alert for future changes of monetary policy by the Fed, particularly
the possibility of a tightening if economic growth continues strong
throughout the rest of this year.
MARKET ENVIRONMENT
The municipal market has benefited from the same improving trends as did
the broader fixed-income markets. This has occurred despite a 25 basis-point
increase in the Federal Funds rate in March and recent commentary by Fed
Chairman Alan Greenspan concerning another potential move. Yields on bonds in
the maturity range that pertains to
your Fund are currently lower than yields on bonds previously purchased and
held in the Fund's present portfolio. The short-intermediate part of the
municipal market continues to show strength and is now at cyclically rich
levels compared to U.S. Treasury securities for the year. Recent issuance of
new municipal bond debt has increased; however, supply in this
short-intermediate maturity range has been less than that for other maturity
ranges. Demand, which is firm throughout the maturity curve, is especially
strong here. It would seem that this sector is less vulnerable to a technical
correction from either oversupply or excessive demand. This characteristic of
performance has helped support the bond prices in your Fund, and furthermore
provides some apparent downside protection.
PORTFOLIO OVERVIEW
As alluded to above, many current new issue offerings are not as
attractive as most of the positions held in the portfolio. Also, very few
bonds came to market in the recent quarter, which alleviates reinvestment
pressure. Fortunately, we have not been under this pressure during this
recent low interest-rate environment. The portfolio of holdings has seasoned,
creating a slightly shorter remaining holding period for the Fund. This
facilitates lower volatility, a potential asset if Fed action is taken. In
the coming months, as maturities occur, we plan to replace these, and any
other holdings, with more advantageous positions.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 20, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
** Distribution rate per share is based upon dividends per share paid from
net investment income during the period (annualized), divided by the net
asset value per share at the end of the period, adjusted for capital gain
distributions. Some income may be subject to the Federal Alternative Minimum
Tax (AMT) for certain shareholders.
<TABLE>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments-100.0% Amount Value
------- -------
<S> <C> <C>
Alaska-5.2%
Alaska Student Loan Corp., Student Loan Revenue:
4.70%, 7/1/1998........................................................... $ 3,060,000 $ 3,067,987
5.25%, 7/1/1999 (Insured; AMBAC).......................................... 3,100,000 3,152,421
5.25%, 7/1/2001 (Insured; AMBAC).......................................... 1,000,000 1,024,170
North Slope Borough:
Zero Coupon, 6/30/1999 (Insured; MBIA).................................... 1,000,000 929,840
Zero Coupon, 6/30/1999 (Insured; MBIA).................................... 4,000,000 3,719,360
Zero Coupon, 6/30/2000 (Insured; MBIA).................................... 2,500,000 2,220,975
Zero Coupon, 6/30/2001 (Insured; MBIA).................................... 2,000,000 1,695,720
Arkansas-.6%
Springdale Residential Housing and Health Care Facilities Board, Revenue
(Springdale Memorial Hospital Project) 5.10%, 10/1/1997................... 1,670,000 1,670,050
California-4.6%
Chula Vista, MFHR (Eucalyptus Grove Project) 5.75%, 11/1/1997............... 4,725,000 4,731,757
Sacramento County, MFHR (Parcwood Apartments) 4.80%, 9/1/2002............... 3,600,000 3,637,548
Santa Rosa Housing Authority, MFHR (Dutton Partners Project) 4.85%, 9/1/2002 5,510,000 5,511,598
Colorado-.9%
Denver City and County Airport, Revenue, Refunding:
5.05%, 11/15/2000......................................................... 1,495,000 1,519,084
5.10%, 11/15/2001......................................................... 1,160,000 1,181,066
Connecticut-2.3%
Greenwich Housing Authority, MFHR (Greenwich Close):
4.90%, 9/1/1999........................................................... 205,000 205,103
5.15%, 9/1/2000........................................................... 220,000 220,167
5.35%, 9/1/2001........................................................... 230,000 230,230
5.55%, 9/1/2002........................................................... 245,000 245,301
5.95%, 9/1/2006........................................................... 310,000 310,620
6.05%, 9/1/2007........................................................... 330,000 330,713
Mashantucket Western Pequot Tribe, Special Revenue
6.25%, 9/1/2001 (a)....................................................... 5,000,000 5,314,700
District of Columbia-.6%
District of Columbia Redevelopment Land Agency, Special Tax Revenue
(Washington D.C. Sports Arena):
5.10%, 11/1/1998........................................................ 925,000 931,022
5.40%, 11/1/2000........................................................ 750,000 761,768
Florida-8.9%
Escambia County Health Facilities Authority, Health Facilities Revenue,
Refunding
(Azalea Trace Inc.):
4.75%, 1/1/2000......................................................... 790,000 791,367
5%, 1/1/2001............................................................ 830,000 835,005
5.10%, 1/1/2002......................................................... 870,000 875,046
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------- -------
Florida (continued)
Florida Housing Finance Agency:
(Forest Place Apartment) 4.85%, 12/1/1999................................. $ 9,000,000 $ 9,073,800
Multi-Family Housing:
5.35%, Series E, 6/1/2000............................................... 5,085,000 5,164,072
5.35%, Series F, 6/1/2000............................................... 2,000,000 2,031,100
5.35%, Series G, 6/1/2000............................................... 3,650,000 3,706,758
(The Crossings Project) 4.85%, 2/1/2001................................. 4,500,000 4,542,255
Illinois-5.8%
Glenview, EDR (Valley Lo Towers II Project) 5.75%, 12/1/1997................ 5,000,000 5,011,600
Illinois Development Finance Authority, Revenue, Refunding
(Community Rehabilitation Providers):
5.60%, 7/1/2001......................................................... 1,530,000 1,583,137
5.60%, 7/1/2002......................................................... 1,415,000 1,469,789
Robbins, RRR, Refunding (Robbins Resource Recovery Partners)
4.90%, 10/15/2002......................................................... 9,350,000 9,378,798
Iowa-.5%
Des Moines, HR, Refunding (Des Moines General Hospital)
5.05%, 11/15/2000 (LOC; Norwest Bank Minnesota) (b)....................... 1,545,000 1,575,977
Maryland-1.1%
Maryland State Energy Financing Administration, SWDR
(Wheelabrator Water Projects):
5.10%, 12/1/1999........................................................ 1,000,000 1,016,860
5.30%, 12/1/2000........................................................ 1,250,000 1,280,075
5.45%, 12/1/2001........................................................ 1,000,000 1,031,040
Massachusetts-2.8%
Massachusetts Municipal Wholesale Electric Co.,
Power Supply System Revenue 5.20%, 7/1/1998............................... 5,000,000 5,048,400
New England Education Loan Marketing Corp., Massachusetts Student
Loan Revenue, Refunding 5%, 6/1/1998...................................... 3,400,000 3,422,814
Michigan-4.0%
Flint Hospital Building Authority, Revenue, Refunding (Hurley Medical
Center):
5.25%, 7/1/1998........................................................... 2,050,000 2,063,059
5.50%, 7/1/1999........................................................... 2,160,000 2,191,126
5.50%, 7/1/2000........................................................... 1,225,000 1,246,131
Greater Detroit, Resource Recovery Authority, Revenue, Refunding
5%, 12/13/2000 (Insured; AMBAC)........................................... 2,500,000 2,563,725
Michigan Housing Development Authority, Rental Housing Revenue:
5%, 10/1/1999 (Insured; MBIA)............................................. 1,915,000 1,938,803
5.15%, 4/1/2000 (Insured; MBIA)........................................... 1,975,000 2,003,519
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------- -------
Mississippi-.8%
Jackson Housing Authority, MFHR (Arbor Park Apartment Project)
5.05%, 12/1/2001 (LOC; Deposit Guaranty National Bank) (b)................ $ 2,500,000 $ 2,545,500
New Jersey-2.8%
Monroe Township Municipal Utilities Authority, Water and Sewer System
Revenue, Refunding
6.875%, 2/1/2017 (Insured; MBIA) (Prerefunded 2/1/2000) (c)............... 5,000,000 5,239,450
New Jersey Economic Development Authority, Wastepaper Recycling Revenue
(MPMI Inc. Project) 5.10%, 2/1/1999....................................... 1,760,000 1,765,579
New Jersey Health Care Facilities Financing Authority, Revenue
(Saint Peter's Medical Center) 6%, 7/1/2001 (Insured; MBIA) (Prerefunded 7/1/2001) (c) 1,500,000 1,593,525
New Mexico-2.0%
Albuquerque, Gross Receipts Tax Subordinate Lien (Affordable Housing Project)
5.375%, 7/1/2001.......................................................... 6,125,000 6,163,588
New York-30.5%
New York City:
4.85%, 2/15/2000.......................................................... 1,340,000 1,356,107
Refunding 4.85%, 2/15/2000................................................ 1,070,000 1,090,726
5%, 2/15/2000............................................................. 16,310,000 16,560,685
Refunding 5%, 2/15/2000................................................... 4,690,000 4,796,651
8%, 6/1/2000.............................................................. 2,190,000 2,406,898
7.50%, 2/1/2001........................................................... 5,000,000 5,465,900
5.10%, 2/15/2001.......................................................... 1,185,000 1,208,463
Refunding 5.10%, 2/15/2001................................................ 815,000 840,249
Refunding 5.50%, 8/1/2001................................................. 9,000,000 9,326,070
5%, 10/15/2001............................................................ 7,500,000 7,648,125
New York State Dormitory Authority, Revenue:
Lease, Refunding (State University Dormitory Facilities) 4.875%, 7/1/2000. 8,665,000 8,796,967
(Mental Health Services Facilities):
Refunding 5%, 2/15/2001................................................. 6,985,000 7,108,215
Refunding 5%, 8/15/2001................................................. 5,785,000 5,900,931
5%, 2/15/2002........................................................... 1,590,000 1,618,652
Refunding 5%, 2/15/2002................................................. 7,095,000 7,222,852
Refunding (City University System) 5.10%, 7/1/2001........................ 1,285,000 1,314,375
New York State Energy Research and Development Authority, Service Contract
Revenue
(Western New York Nuclear Service Center Project):
5%, 4/1/2001............................................................ 1,625,000 1,652,641
5%, 4/1/2002............................................................ 1,795,000 1,825,353
New York State Housing Finance Agency, Revenue, Refunding
(Health Facilities-New York City):
4.85%, 5/1/1999......................................................... 1,080,000 1,093,111
4.85%, 11/1/1999........................................................ 1,360,000 1,380,142
5.15%, 5/1/2000......................................................... 1,140,000 1,162,880
5.15%, 11/1/2000........................................................ 1,430,000 1,463,891
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------- -------
New York (continued)
New York State Urban Development Corp., Revenue, Refunding
(Onondaga County Convention Project) 4.875%, 1/1/2000..................... . $ 1,000,000 $ 1,013,230
North Carolina-3.0%
North Carolina Eastern Municipal Power Agency, Power System Revenue,
Refunding:
5.20%, 1/1/2001........................................................... 5,000,000 5,099,900
5%, 1/1/2002.............................................................. 4,000,000 4,048,560
Oklahoma-.4%
Holdenville Industrial Authority, Correctional Facility Revenue
5.70%, 7/1/2001........................................................... 1,175,000 1,215,714
Pennsylvania-5.0%
Armstrong County Hospital Authority, HR
(Saint Francis Central Hospital) 5.25%, 11/1/1997 (LOC; Pittsburgh National Bank) (b)........... 3,100,000 3,103,379
Delaware County Industrial Development Authority, Revenue, Refunding
(Resource Recovery Facility) 5.30%, 1/1/2001.............................. 7,685,000 7,848,690
Philadelphia Hospitals and Higher Education Facilities Authority, HR
(Pennsylvania Hospital) 5.50%, 7/1/2000................................... 4,165,000 4,264,877
Rhode Island-1.7%
Rhode Island Housing and Mortgage Finance Corp., Multi-Family Housing,
Refunding
5%, 7/1/2000 (Insured; AMBAC)............................................. 5,000,000 5,081,200
South Carolina-1.0%
Charleston County Health Facilities, First Mortgage Revenue
(Episcopal Project) 5.30%, 10/1/2002...................................... 3,000,000 3,015,000
South Dakota-2.0%
South Dakota Student Loan Finance Corp., Student Loan Revenue 5.70%, 8/1/1999 6,000,000 6,123,540
Texas-7.3%
Bell County Health Facilities Development Corp., Revenue, Refunding
5.26%, 10/1/1998 (a,d).................................................... 11,200,000 11,200,000
Brazos Higher Education Authority Inc., Student Loan Revenue, Refunding:
5.30%, 12/1/1997.......................................................... 1,845,000 1,848,764
4.95%, 6/1/1998........................................................... 2,500,000 2,514,000
Northeast Hospital Authority, Revenue, Refunding
(Northeast Medical Center Hospital):
4.50%, 5/15/1998........................................................ 1,100,000 1,103,652
5.10%, 5/15/2000........................................................ 1,230,000 1,249,237
5.25%, 5/15/2001........................................................ 1,300,000 1,328,717
5.35%, 5/15/2002........................................................ 2,725,000 2,799,992
Utah-1.7%
Intermountain Power Agency, Power Supply Revenue
5.05%, 7/1/2001 (Insured; MBIA)........................................... 5,035,000 5,178,296
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------- -------
Virginia-1.1%
Hopewell Industrial Development Authority,
Health Care Facility Revenue, Refunding:
(Colonial Heights) 5%, 10/01/1999....................................... $ 145,000 $ 145,272
(Westport Convalescent Center) 5.15%, 10/1/2000......................... . 205,000 205,508
Peninsula Ports Authority, Revenue, Refunding
4.875%, 7/1/1997 (LOC; Nationsbank of Virginia) (b)....................... 2,950,000 2,954,012
West Virginia-1.6%
West Virginia Public Energy Authority, Energy Revenue
(Morgantown Association Project) 5.50%, 1/1/1998 (LOC; Swiss Bank Corp.) (b) 4,860,000 4,879,196
U.S. Related-1.8%
Guam Airport Authority, Revenue 5.80%, 10/1/1999............................ 1,705,000 1,750,285
Puerto Rico Municipal Finance Agency 5%, 7/1/1998........................... 3,655,000 3,685,116
-------
TOTAL INVESTMENTS (cost $298,731,474)....................................... $302,659,119
=======
</TABLE>
<TABLE>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
EDR Economic Development Revenue RRR Resources Recovery Revenue
HR Hospital Revenue SWDR Solid Waste Disposal Revenue
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
Insurance Corporation
Summary of Combined Ratings (Unaudited)
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
- -------- -------- ----------------- ------------------
AAA Aaa AAA 14.3%
AA Aa AA 17.0
A A A 42.0
BBB Baa BBB 22.9
F1 MIG1/P1 SP1/A1 1.6
Not Rated (f) Not Rated (f) Not Rated (f) 2.2
----
100.0%
====
Notes to Statement of Investments:
(a) Securities 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, 1997, these securities amounted to $16,514,700 or 5.4% of
net assets.
(b) Secured by letters of credit.
(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) Inverse floater security-the interest rate is subject to change
periodically.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's and 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>
<TABLE>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1997 (UNAUDITED)
Cost Value
-------- --------
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $298,731,474 $302,659,119
Cash....................................... 411,696
Interest receivable........................ 4,202,566
Receivable for shares of Beneficial Interest subscribed 100,000
Prepaid expenses........................... 28,922
--------
307,402,303
--------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 142,785
Due to Distributor......................... 16,398
Payable for shares of Beneficial Interest redeemed 17,566
Accrued expenses........................... 82,188
--------
258,937
--------
NET ASSETS.................................................................. $307,143,366
========
REPRESENTED BY: Paid-in capital............................ $309,776,843
Accumulated net realized gain (loss) on investments (6,561,122)
Accumulated gross unrealized appreciation
on investments.............................. 3,927,645
--------
NET ASSETS.................................................................. $307,143,366
========
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest
authorized) ........................................... 23,556,944
NET ASSET VALUE, offering and redemption price per share-Note 3(d).......... $13.04
====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $7,675,517
EXPENSES: Management fee-Note 3(a)................... $ 773,933
Shareholder servicing costs-Note 3(b)...... 262,299
Trustees' fees and expenses-Note 3(c)...... 27,936
Registration fees.......................... 27,572
Custodian fees............................. 16,571
Professional fees.......................... 11,884
Prospectus and shareholders' reports-Note 3(b) 11,491
Loan commitment fees-Note 2................ 1,389
Miscellaneous.............................. 42,857
------
Total Expenses....................... 1,175,932
------
INVESTMENT INCOME-NET....................................................... 6,499,585
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ (39,081)
Net unrealized appreciation (depreciation) on investments 3,072,520
------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 3,033,439
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $9,533,024
======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1997 Year Ended
(Unaudited) March 31, 1997
---------- --------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................. $ 6,499,585 $ 14,194,858
Net realized gain (loss) on investments............................... (39,081) 278,170
Net unrealized appreciation (depreciation) on investments............. 3,072,520 (1,727,475)
------- -------
Net Increase (Decrease) in Net Assets Resulting from Operations..... 9,533,024 12,745,553
------- -------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................. (6,499,585) (14,276,210)
Net realized gain on investments...................................... (14,169) (9,971)
------- -------
Total Dividends..................................................... (6,513,754) (14,286,181)
------- -------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold......................................... 33,488,698 187,552,735
Dividends reinvested.................................................. 5,636,302 12,180,467
Cost of shares redeemed............................................... (60,013,955) (211,240,352)
------- -------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (20,888,955) (11,507,150)
------- -------
Total Increase (Decrease) in Net Assets........................... (17,869,685) (13,047,778)
NET ASSETS:
Beginning of Period................................................... 325,013,051 338,060,829
------- -------
End of Period......................................................... $307,143,366 $325,013,051
======= =======
Shares Shares
------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold........................................................... 2,579,376 14,483,518
Shares issued for dividends reinvested................................ 433,669 940,554
Shares redeemed....................................................... (4,628,554) (16,315,596)
------- -------
Net Increase (Decrease) in Shares Outstanding....................... (1,615,509) (891,524)
======= =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
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
September 30, 1997 Year Ended March 31,
----------------------------------------------------
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
---------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $12.91 $12.97 $12.82 $13.02 $13.21 $12.85
---- ---- ---- ---- ---- ----
Investment Operations:
Investment income-net................. .27 .56 .58 .57 .58 .63
Net realized and unrealized gain (loss)
on investments...................... .13 (.06) .15 (.20) (.18) .38
---- ---- ---- ---- ---- ----
Total from Investment Operations...... .40 .50 .73 .37 .40 1.01
---- ---- ---- ---- ---- ----
Distributions:
Dividends from investment income-net.. (.27) (.56) (.58) (.57) (.58) (.63)
Dividends from net realized gain on investments .- .- .- .- (.01) (.02)
---- ---- ---- ---- ---- ----
Total Distributions................... (.27) (.56) (.58) (.57) (.59) (.65)
---- ---- ---- ---- ---- ----
Net asset value, end of period........ $13.04 $12.91 $12.97 $12.82 $13.02 $13.21
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................... 6.28%(1) 3.96% 5.78% 2.93% 3.05% 8.04%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .76%(1) .80% .68% .70% .74% .75%
Ratio of net investment income
to average net assets............... 4.20%(1) 4.33% 4.49% 4.42% 4.35% 4.76%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .- .02% .05% .- .- .-
Portfolio Turnover Rate............... 18.85%(2) 47.84% 44.39% 37.38% 34.68% 31.80%
Net Assets, end of period (000's Omitted) $307,143 $325,013 $338,061 $380,784 $598,274 $386,464
(1) Annualized.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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") is the distributor of the Fund's shares which are
sold to the public without a sales load.
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 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 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 $6,430,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1997. If not
applied, $3,557,000 of the carryover expires in fiscal 2003 and $2,873,000
expires in 2004.
As a result of the treatment of market discount for financial reporting
purposes, versus Federal income tax purposes, the Fund reclassified $13,893
from undistributed net realized and unrealized gains to net investment
income. This amount represented the cumulative effect of such difference.
Results of operations and net assets were not effected by this
reclassification.
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("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 prevailing
market rates in effect at the time of borrowings. For the period ended
September 30, 1997, 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, exclusive of
taxes, brokerage, interest on borrowings, commitment fees and extraordinary
expenses, exceed 11\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 such excess expense. There was no expense reimbursement for the
period ended September 30, 1997.
(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 under the Plan and
the basis on which such payments are made. The fees payable under the Plan
are payable without regard to actual expenses incurred. 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 period ended September
30, 1997, the Fund was charged $158,712 pursuant to the 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 September 30, 1997, the Fund was charged $50,091 pursuant to the
transfer agency 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.
(d) A .10% redemption fee is charged on certain redemptions of Fund
shares (including redemptions through the use of the Fund Exchanges service)
where the shares being redeemed were issued subsequent to a specified
effective date and the redemption or exchange occurs less than fifteen days
following the date of issuance.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended September 30, 1997
amounted to $58,161,058 and $84,239,681, respectively.
At September 30, 1997, 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).
Registration Mark
[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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 591SA979
Registration Mark
[Dreyfus logo]
Short-Intermediate
Municipal
Bond Fund
Semi-Annual
Report
September 30, 1997
