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 fiscal year ended March 31,
1997. Your Fund produced a total return of 3.96%, which includes bond price
changes, interest income and capital gain distributions.* Income dividends
exempt from Federal personal income taxes of approximately $.564 per share
were paid to shareholders.** This is equivalent to an annualized tax-free
distribution rate per share of 4.34%.***
THE ECONOMY
Reacting to an economy which reflects strong growth, low unemployment
and stable prices, the Federal Open Market Committee (FOMC) of the Federal
Reserve Board (the "Fed") raised interest rates at the end of March for the
first time in over two years. Concerned that persistently strong demand would
increase the risk of a resurgence of inflation, the FOMC, which is the
policy-making arm of the Fed, voted to lift the Federal Funds rate by a
quarter of a percentage point to 5.5%. (The Federal Funds rate is the rate
that banks charge each other for overnight loans.) The move to raise interest
rates had been much discussed since early last year when the Fed first became
concerned about the inflationary potential of rising wage demands resulting
from the strong rate of growth in new jobs. Yet over that time, there has
been little evidence of inflation despite robust job growth and an
unemployment rate of less than 5.5%, a level that in the 1970s and 1980s
contributed to an escalation in wages and prices. Instead, prices in
virtually all sectors of the economy have remained quiescent. The Consumer
Price Index has risen a modest 2.8% over the past 12 months, while increases
in producer prices have been equally modest and, of late, many prices have
actually fallen.
Not surprisingly, the consumer confidence index of the Conference
Board, a private research group, remains near all-time high territory. A
closely followed component measures consumer sentiment about the job market.
The percentage of people reporting that jobs are plentiful has recently
reached an eight-year high, while the portion reporting that jobs are hard to
get was the lowest ever recorded. That positive attitude regarding job
security has been cited by Federal Reserve Board Chairman Greenspan as a
possible harbinger of higher wage pressures, which could result in an
acceleration in the rate of inflation.
Looking at the economy more generally, factory production _
particularly the durable goods sector _ has picked up lately after slumping
over the last two months of last year. Also suggesting renewed vigor in the
economy was the brisk pickup in retail sales from their relatively sluggish
pace over the last quarter of 1996. As a corollary to the surge in retail
sales, late payments on credit card debt have risen to the highest proportion
of accounts since 1980, the year the American Bankers Association first
monitored credit card delinquencies.
Effective monetary policy is formulated less on how conditions are today than
on how things may be in the future; hence the Fed's preemptive move to
tighten without significant direct evidence that inflation is already on the
rise is understandable. In recent testimony to Congress made before the Fed's
decision to raise the Federal Funds rate, Fed Chairman Alan Greenspan said
that the question "is not so much . . . where prices are or have been, but
rather what the state of the economy will be later this year and into 1998
when any actions we may or may not have taken would become effective." We
continue to remain alert to any economic developments that might indicate a
further tightening by the Fed.
MARKET ENVIRONMENT
Recent market activity indicates that despite the assumed 25
basis-point rate hike considered "priced into" most long-term securities in
advance of the Federal Reserve move, prices of those securities have fallen
an additional 25 basis points since the March 25 announcement. It appears
that currently, the bond market bears are in control of the interpretation of
the follow-up data on the U.S. economy. This phenomenon has mostly affected
long-term Treasury and other long-term
taxable debt instruments, while the effect on municipal bonds has not been as
severe. The increase in municipal bond yields, and their corresponding price
decreases, have only been two-thirds as much as taxables; the impact on
short-intermediate tax exempt securities, the kind that constitute your Fund,
has been even less. Most municipal new-issue bonds in the past week were well
placed despite the significant new issue calendar of almost $8 billion over
the last two weeks. So far, this has occurred with little adverse
anticipatory selling. Demand has re-emerged from the individual retail
sector, which in some cases is running 25% above the recent trend. Higher
yields and reallocation from the correction in equities apparently are the
primary incentives. Additionally, the property casualty insurance companies,
which have not been net adders of tax exempt securities according to some
data sources, have actually been large buyers to replace called securities
bought ten years ago, a time when the insurance cycle favored the purchase of
tax exempt securities.
THE PORTFOLIO
The Fund's portfolio is laddered with securities that represent the
most stable relative relationship on the municipal yield curve relative to
their taxable counterparts. This relationship has endured, not only recently,
but also during the time of the last round of Fed tightenings in 1994. We
intend to hold many of the securities that maintain or enhance this
performance characteristic through the year. The Fund has been a net seller
in the first quarter of the year and has had some older income securities
mature. To remain invested and not compromise the dividend component of our
return to you, we reinvested in the three-to-four-year maturity range. This
has preserved the Fund's income production and moved the weighted average
life of the Fund back into 21\2 years, its traditional maturity range. Going
forward, if there is a new increasing rate environment, we plan to be very
selective about integrating any purchase of this sector of the municipal bond
market (regardless of positive history), and we intend to maintain the
capital preservation goals this Fund represents.
Enclosed please find a copy of the recent portfolio holdings for your
review.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 17, 1997
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.
***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 any capital gain
distributions.
Dreyfus Short-Intermediate Municipal Bond Fund March 31, 1997
[Exhibit A]
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
$21,761
Lehman Brothers
10-Year Municipal
Bond Index*
Dollars
$17,319
Dreyfus Short-
Intermediate Municipal
Bond Fund
[Eshibit A]
*Source: Lehman Brothers
<TABLE>
<CAPTION>
Average Annual Total Returns
One Year Ended Five Years Ended From Inception (4/30/87)
March 31, 1997 March 31, 1997 to March 31, 1997
___________________ ________________ _________________________
<S> <C> <C>
3.96% 4.73% 5.69%
</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
publicly available market Index determined to be representative of the market
in which the Fund operates.
This 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 9-12 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. 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, 1997
Principal
Long-Term Municipal Investments_100.0% Amount Value
__________ __________
<S> <C> <C>
Alaska_4.8%
Alaska Student Loan Corp., Student Loan Revenue:
4.70%, 7/1/1998......................................................... $ 3,060,000 $ 3,073,801
5.25%, 7/1/1999 (Insured; AMBAC)........................................ 3,100,000 3,136,425
5.25%, 7/1/2001 (Insured; AMBAC)........................................ 1,000,000 1,005,580
North Slope Borough:
Zero Coupon, 6/30/1999 (Insured; MBIA).................................. 1,000,000 902,930
Zero Coupon, 6/30/1999 (Insured; MBIA).................................. 4,000,000 3,611,720
Zero Coupon, 6/30/2000 (Insured; MBIA).................................. 2,500,000 2,146,800
Zero Coupon, 6/30/2001 (Insured; MBIA).................................. 2,000,000 1,630,000
Arkansas_.5%
Springdale Residential Housing and Health Care Facilities Board, Revenue
(Springdale Memorial Hospital Project) 5.10%, 10/1/1997................. 1,670,000 1,678,834
California_4.9%
California Statewide Communities Development Authority, Insured HR,
Refunding, COP (Triad Healthcare) 5.25%, 8/1/1997....................... 2,500,000 2,501,525
Chula Vista, MFHR (Eucalyptus Grove Project) 5.75%, 11/1/1997............... 4,760,000 4,766,188
Santa Rosa Housing Authority, MFHR (Dutton Partners Project) 4.875%, 9/1/1997 8,750,000 8,757,700
Colorado_1.2%
Colorado Student Obligation Bond Authority, Student Loan Revenue
5.20%, 9/1/1997......................................................... 1,200,000 1,206,000
Denver City and County Airport, Revenue, Refunding:
5.05%, 11/15/2000....................................................... 1,495,000 1,494,910
5.10%, 11/15/2001....................................................... 1,160,000 1,155,221
Connecticut_2.8%
Connecticut, Housing Mortgage Revenue (Chestnut Hill Apartments)
4.60%, 4/1/1997 (LOC; National Australia Bank) (a)...................... 3,875,000 3,868,064
Mashantucket Western Pequot Tribe, Special Revenue
6.25%, 9/1/2001 (b)..................................................... 5,000,000 5,204,550
District of Columbia_2.7%
District of Columbia, Refunding:
4.60%, Series C, 12/1/1997.............................................. 2,000,000 2,002,340
4.60%, Series D, 12/1/1997.............................................. 5,250,000 5,256,143
District of Columbia Redevelopment Land Agency, Special Tax Revenue
(Washington D.C. Sports Arena):
5.10%, 11/1/1998...................................................... 925,000 930,125
5.40%, 11/1/2000...................................................... 750,000 755,783
Florida_8.2%
Escambia County Health Facilities Authority, Health Facilities Revenue,
Refunding
(Azalea Trace Inc.):
4.75%, 1/1/2000....................................................... 790,000 778,561
Dreyfus Short-Intermediate Municipal Bond Fund
Statement of Investments (continued) March 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
__________ __________
Florida (continued)
Escambia County Health Facilities Authority, Health Facilities Revenue, Refunding
(Azalea Trace Inc.) (continued):
5%, 1/1/2001.......................................................... $ 830,000 $ 817,691
5.10%, 1/1/2002....................................................... 870,000 853,418
Florida Housing Finance Agency:
(Forest Place Apartment) 4.85%, 12/1/1999............................... 9,000,000 9,076,860
Multi-Family Housing:
5.35%, Series E, 6/1/2000............................................. 5,085,000 5,144,698
5.35%, Series F, 6/1/2000............................................. 2,000,000 2,023,480
5.35%, Series G, 6/1/2000............................................. 3,650,000 3,692,851
(The Crossings Project) 4.85%, 2/1/2001............................... 4,500,000 4,464,045
Illinois_3.7%
Glenview, EDR (Valley Lo Towers II Project) 5.75%, 12/1/1997................ 5,000,000 5,039,900
Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue
Zero Coupon, 6/15/1997 (Insured; AMBAC)................................. 7,035,000 6,977,805
Iowa_.5%
Des Moines, HR, Refunding (Des Moines General Hospital)
5.05%, 11/15/2000 (LOC; Norwest Bank Minnesota) (a)..................... 1,545,000 1,549,975
Louisiana_1.0%
Louisiana Public Facilities Authority, Revenue
(Equipment Leasing-Department of Public Safety):
4.60%, 8/1/1999 (Insured; AMBAC)...................................... 1,515,000 1,515,576
4.75%, 8/1/2000 (Insured; AMBAC)...................................... 1,745,000 1,742,225
Maryland_1.0%
Maryland State Energy Financing Administration, SWDR
(Wheelabrator Water Projects):
5.10%, 12/1/1999...................................................... 1,000,000 1,005,870
5.30%, 12/1/2000...................................................... 1,250,000 1,257,338
5.45%, 12/1/2001...................................................... 1,000,000 1,008,270
Massachusetts_4.1%
Massachusetts Bay Transportation Authority (Massachusetts General
Transportation System):
7.625%, 3/1/2009 (Insured; FSA) (Prerefunded 3/1/1998) (c).............. 1,000,000 1,053,430
7.75%, 3/1/2011 (Insured; FSA) (Prerefunded 3/1/1998) (c)............... 1,000,000 1,054,550
Massachusetts Education Loan Authority, Education Loan Revenue
4.75%, 7/1/2000 (Insured; AMBAC)........................................ 1,750,000 1,738,958
Massachusetts Health and Educational Facilities Authority, Revenue
(Lahey Clinic Medical Center)
7.625%, 7/1/2018 (Insured; MBIA) (Prerefunded 7/1/1998) (c)........... 1,000,000 1,062,780
Massachusetts Municipal Wholesale Electric Co.,
Power Supply System Revenue 5.20%, 7/1/1998............................. 5,000,000 5,057,500
Dreyfus Short-Intermediate Municipal Bond Fund
Statement of Investments (continued) March 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_________ _________
Massachusetts (continued)
New England Education Loan Marketing Corp., Massachusetts Student
Loan Revenue, Refunding 5%, 6/1/1998.................................... $ 3,400,000 $ 3,435,836
Michigan_3.7%
Flint Hospital Building Authority, Revenue, Refunding (Hurley Medical Center):
5.25%, 7/1/1998......................................................... 2,050,000 2,059,430
5.50%, 7/1/1999......................................................... 2,160,000 2,172,485
5.50%, 7/1/2000......................................................... 1,225,000 1,224,890
Greater Detroit, Resource Recovery Authority, Revenue, Refunding
5%, 12/13/2000 (Insured; AMBAC)......................................... 2,500,000 2,525,875
Michigan Housing Development Authority, Rental Housing Revenue:
5%, 10/1/1999 (Insured; MBIA)........................................... 1,915,000 1,931,546
5.15%, 4/1/2000 (Insured; MBIA)......................................... 1,975,000 1,996,409
Mississippi_1.5%
Jackson Housing Authority, MFHR (Arbor Park Apartment Project)
5.05%, 12/1/2001 (LOC; Deposit Guaranty National Bank) (a).............. 2,500,000 2,496,125
Mississippi Higher Education Assistance Corp., Student Loan Revenue, Refunding
5.70%, 7/1/1997......................................................... 2,435,000 2,445,227
New Jersey_2.6%
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 5,261,200
New Jersey Economic Development Authority, Wastepaper Recycling
Revenue (MPMI Inc. Project) 5.10%, 2/1/1999............................. 1,760,000 1,753,066
New Jersey Health Care Facilities Financing Authority, Revenue
(Saint Peter's Medical Center) 6%, 7/1/2021 (Insured; MBIA) (Prerefunded 7/1/2001) (c) 1,500,000 1,570,380
New Mexico_1.9%
Albuquerque, Gross Receipts Tax Subordinate Lien (Affordable Housing Project)
5.375%, 7/1/2001........................................................ 6,125,000 6,145,641
New York_30.7%
New York City:
4.875%, 8/1/1997........................................................ 4,000,000 4,011,560
5.25%, 8/1/1997......................................................... 15,000,000 15,061,800
Refunding 5%, 2/15/2000................................................. 21,000,000 20,987,610
4.85%, 2/15/2000........................................................ 2,410,000 2,398,649
5.10%, 2/15/2001........................................................ 2,000,000 1,994,320
Refunding 5.50%, 8/1/2001............................................... 9,000,000 9,109,800
5%, 10/15/2001.......................................................... 7,500,000 7,445,850
New York State Dormitory Authority, Revenue:
Court Facilities Lease 4.80%, 5/15/2001................................. 2,645,000 2,613,763
(Department of Health) 4.75%, 7/1/2001.................................. 1,435,000 1,412,700
Lease, Refunding (State University Dormitory Facilities) 4.875%, 7/1/2000 8,665,000 8,641,171
Dreyfus Short-Intermediate Municipal Bond Fund
Statement of Investments (continued) March 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
__________ __________
New York (continued)
New York State Dormitory Authority, Revenue (continued):
(Mental Health Services Facilities):
Refunding 5%, 2/15/2001............................................... $ 6,985,000 $ 6,957,898
5%, 2/15/2002......................................................... 1,590,000 1,574,354
Refunding 5%, 2/15/2002............................................... 7,095,000 7,025,185
Refunding (City University System) 5.10%, 7/1/2001...................... 1,285,000 1,285,874
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 1,614,551
5%, 4/1/2002.......................................................... 1,795,000 1,771,611
New York State Housing Finance Agency, Revenue, Refunding
(Health Facilities-New York City):
4.85%, 5/1/1999....................................................... 1,080,000 1,082,203
4.85%, 11/1/1999...................................................... 1,360,000 1,363,210
5.15%, 5/1/2000....................................................... 1,140,000 1,143,808
5.15%, 11/1/2000...................................................... 1,430,000 1,435,506
New York State Urban Development Corp., Revenue, Refunding
(Onondaga County Convention Project) 4.875%, 1/1/2000................... 1,000,000 998,780
North Carolina_1.5%
North Carolina Eastern Municipal Power Agency, Power System Revenue, Refunding
5.20%, 1/1/2001......................................................... 5,000,000 5,008,000
Oklahoma_.4%
Holdenville Industrial Authority, Correctional Facility Revenue
5.70%, 7/1/2001......................................................... 1,175,000 1,185,904
Pennsylvania_5.9%
Armstrong County Hospital Authority, HR
(Saint Francis Central Hospital) 5.25%, 11/1/1997 (LOC; Pittsburgh National Bank) (a) 3,100,000 3,118,817
Philadelphia, Gas Works Revenue 5.20%, 7/1/1997............................. 11,845,000 11,879,587
Philadelphia Hospitals and Higher Education Facilities Authority, HR
(Pennsylvania Hospital) 5.50%, 7/1/2000................................. 4,165,000 4,189,198
Rhode Island_1.6%
Rhode Island Housing and Mortgage Finance Corp., Multi-Family Housing, Refunding
5%, 7/1/2000 (Insured; AMBAC)........................................... 5,000,000 5,060,900
South Dakota_1.9%
South Dakota Student Loan Finance Corp., Student Loan Revenue 5.70%, 8/1/1999 6,000,000 6,121,380
Texas_4.8%
Bell County Health Facilities Development Corp., Revenue, Refunding
5.33%, 10/1/1998 (b,d).................................................. 11,200,000 11,214,000
Dreyfus Short-Intermediate Municipal Bond Fund
Statement of Investments (continued) March 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
__________ __________
Texas (continued)
Brazos Higher Education Authority Inc., Student Loan Revenue, Refunding:
5.30%, 12/1/1997........................................................ $ 1,845,000 $ 1,860,037
4.95%, 6/1/1998......................................................... 2,500,000 2,512,500
Utah_1.6%
Intermountain Power Agency, Power Supply Revenue
5.05%, 7/1/2001 (Insured; MBIA)......................................... 5,035,000 5,091,190
Virginia_3.4%
Fairfax County Redevelopment and Housing Authority, Guaranteed Revenue,
Refunding
(Shenandoah Crossing Apartments) 5.25%, 12/1/1997....................... 8,100,000 8,108,910
Penninsula Ports Authority, Revenue, Refunding (Olde Hampton Hotel)
4.875%, 7/1/1999 (LOC; Nationsbank of Virginia, N.A.) (a)............... 3,000,000 3,008,010
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 4,917,687
U.S. Related_1.6%
Guam Airport Authority, Revenue 5.80%, 10/1/1999............................ 1,705,000 1,735,877
Puerto Rico Municipal Finance Agency 5%, 7/1/1998........................... 3,655,000 3,688,223
____________
TOTAL INVESTMENTS
(cost $324,793,828)..................................................... $325,648,953
=============
</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 SWDR Solid Waste Disposal Revenue
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
____ _______ __________________ ______________________
<S> <C> <S> <C>
AAA Aaa AAA 17.0%
AA Aa AA 15.1
A A A 37.7
BBB Baa BBB 20.7
BB Ba BB 2.2
F1 MIG1/P1 SP1/A1 6.8
Not Rated(f) Not Rated(f) Not Rated(f) .5
________
100.0%
=========
</TABLE>
Notes to Statement of Investments:
(a)Secured by letters of credit.
(b)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 March 31, 1997,
these securities amounted to $16,418,550 or 5.1% of net assets.
(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>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1997
Cost Value
______________ ___________
<S> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $324,793,828 $325,648,953
Interest receivable........................ 4,304,094
Prepaid expenses........................... 59,911
___________
330,012,958
___________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 162,444
Due to Distributor......................... 12,790
Cash overdraft due to Custodian............ 4,087,632
Payable for shares of Beneficial Interest redeemed 587,882
Accrued expenses........................... 149,159
___________
4,999,907
___________
NET ASSETS.................................................................. $325,013,051
============
REPRESENTED BY: Paid-in capital............................ $330,665,798
Accumulated net realized gain (loss) on investments (6,507,872)
Accumulated net unrealized appreciation (depreciation)
on investments_Note 4.................... 855,125
___________
NET ASSETS.................................................................. $325,013,051
============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized) 25,172,453
NET ASSET VALUE, offering and redemption price per share.................... $12.91
=======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1997
INVESTMENT INCOME
INCOME Interest Income............................ $16,827,407
EXPENSES: Management fee_Note 3(a)................... $ 1,638,089
Shareholder servicing costs_Note 3(b)...... 552,066
Custodian fees............................. 300,669
Trustees' fees and expenses_Note 3(c)...... 65,554
Professional fees.......................... 56,637
Registration fees.......................... 36,668
Prospectus and shareholders' reports_Note 3(b) 31,033
Loan commitment fees_Note 2................ 1,819
Miscellaneous.............................. 22,094
_____________
Total Expenses....................... 2,704,629
Less-reduction in management fee due to
undertakings_Note 3(a)................. (72,080)
_____________
Net Expenses......................... 2,632,549
_____________
INVESTMENT INCOME_NET....................................................... 14,194,858
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $ 278,170
Net unrealized appreciation (depreciation) on investments (1,727,475)
_____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (1,449,305)
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $12,745,553
==============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
March 31, 1997 March 31, 1996
___________________ __________________
OPERATIONS:
Investment income_net................................................. $ 14,194,858 $ 15,858,961
Net realized gain (loss) on investments................................. 278,170 (12,114)
Net unrealized appreciation (depreciation) on investments............... (1,727,475) 4,334,551
___________________ __________________
Net Increase (Decrease) in Net Assets Resulting from Operations....... 12,745,553 20,181,398
___________________ __________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net................................................... (14,276,210) (15,777,609)
Net realized gain on investments........................................ (9,971) __
___________________ __________________
Total Dividends....................................................... (14,286,181) (15,777,609)
___________________ __________________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 187,552,735 159,298,364
Dividends reinvested.................................................... 12,180,467 13,463,701
Cost of shares redeemed................................................. (211,240,352) (219,888,578)
___________________ __________________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (11,507,150) (47,126,513)
___________________ __________________
Total Increase (Decrease) in Net Assets........................... (13,047,778) (42,722,724)
NET ASSETS:
Beginning of Period..................................................... 338,060,829 380,783,553
___________________ __________________
End of Period........................................................... $ 325,013,051 $ 338,060,829
================= ================
Undistributed investment income_net......................................... __ $ 81,352
___________________ __________________
Shares Shares
___________________ __________________
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 14,483,518 12,288,534
Shares issued for dividends reinvested.................................. 940,554 1,038,945
Shares redeemed......................................................... (16,315,596) (16,971,344)
___________________ __________________
Net Increase (Decrease) in Shares Outstanding......................... (891,524) (3,643,865)
================= ================
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.
<TABLE>
<CAPTION>
Year Ended March 31,
_____________________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
_________ _________ _________ _________ _________
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $12.97 $12.82 $13.02 $13.21 $12.85
_________ _________ _________ _________ _________
Investment Operations:
Investment income_net........................ .56 .58 .57 .58 .63
Net realized and unrealized gain (loss)
on investments............................ (.06) .15 (.20) (.18) .38
_________ _________ _________ _________ _________
Total from Investment Operations............ .50 .73 .37 .40 1.01
_________ _________ _________ _________ _________
Distributions:
Dividends from investment income_net......... (.56) (.58) (.57) (.58) (.63)
Dividends from net realized gain
on investments __ __ __ (.01) (.02)
_________ _________ _________ _________ _________
Total Distributions.......................... (.56) (.58) (.57) (.59) (.65)
_________ _________ _________ _________ _________
Net asset value, end of period............... $12.91 $12.97 $12.82 $13.02 $13.21
========= ======== ========= ========= =========
TOTAL INVESTMENT RETURN.......................... 3.96% 5.78% 2.93% 3.05% 8.04%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .80% .68% .70% .74% .75%
Ratio of net investment income
to average net assets...................... 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...................... 47.84% 44.39% 37.38% 34.68% 31.80%
Net Assets, end of period (000's Omitted).. $325,013 $338,061 $380,784 $598,274 $386,464
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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") 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 fiscal 2004.
As a result of the treatment of market discount for financial reporting
purposes, versus federal income tax purposes, the Fund reclassified $8,643
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 (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 March
31, 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 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. The Manager had undertaken from April 1, 1996 through August 16,
1996 to reduce the management fee paid by the Fund, to the extent that the
Fund's aggregate annual expenses (exclusive of certain expenses as described
above) exceeded specified annual percentages of the Fund's average daily net
assets. The reduction in management fee, pursuant to the undertaking,
amounted to $72,080 during the period ended March 31, 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 to which it will
make payments 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 March 31, 1997, $338,961 was charged to the Fund 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. Such
compensation amounted to $108,573 during the period ended March 31, 1997.
(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) Effective March 3, 1997, 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.
Dreyfus Short-Intermediate Municipal Bond Fund
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 4_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1997
amounted to $158,015,630 and $168,680,852, respectively.
At March 31, 1997, accumulated net unrealized appreciation on investments
was $855,125, consisting of $1,434,033 gross unrealized appreciation and
$578,908 gross unrealized depreciation.
At March 31, 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).
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, 1997, 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 and financial highlights. Our procedures included
confirmation of securities owned as of March 31, 1997 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, 1997,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
[Ernst & Young LLP signature logo]
New York, New York
April 24, 1997
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, 1997 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 1997 calendar year
on Form 1099-DIV which will be mailed by January 31, 1998.
[Dreyfus lion "d" logo]
Registration Mark
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. 591AR973
[Dreyfus logo]
Registration Mark
Short-Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1997
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:
LEHMAN BROTHERS
PERIOD 10-YEAR DREYFUS
MUNICIPAL SHORT-INTERMEDIATE
BOND INDEX * MUNICIPAL BOND FUND
4/30/87 10,000 10,000
3/31/88 10,896 10,648
3/31/89 11,509 11,117
3/31/90 12,658 11,931
3/31/91 13,884 12,785
3/31/92 15,177 13,745
3/31/93 17,186 14,849
3/31/94 17,669 15,302
3/31/95 18,998 15,749
3/31/96 20,863 16,659
3/31/97 21,761 17,319
* Source: Lehman Brothers
