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 12-month period ended March
31, 1998. Your Fund produced a total return, including share price changes
and dividend income generated, of 5.64%,* and a tax-free distribution rate
per share of 4.17%.**
THE ECONOMY
The United States economy is well on the track to its eighth consecutive
year of expansion. Low interest rates, restrained inflation and plentiful
jobs have driven measures of consumer confidence to record levels. Personal
income has grown strongly over the reporting period, and consumer spending,
after a sluggish holiday season, has picked up sharply this year. The
production side of the economy has remained strong as well, although signs of
leveling off were seen early in the year, perhaps due to the economic
problems in Asia. The first effects of the Asian economic crisis were felt at
the end of last year when after-tax corporate profits fell in the fourth
quarter, the first decline since the third quarter of 1996. Balance of Trade
figures for January (the latest data available) provided additional evidence
that the economic difficulties in Asia may be affecting the U.S. economy.
The Federal Reserve Board expects that a reduction in demand for U.S.
exports will result from the turmoil in Asia and dampen our domestic economic
growth as a result. Currency devaluations throughout Asia, in turn, have made
imports into the United States less expensive. Cheaper imports and waning
demand for U.S. exports should place additional downward pressure on domestic
prices, further helping to control inflation. The year-long decline in oil
prices has also helped. A restrained rate of inflation, in turn, would ease
some of the strains on the labor market and help keep labor costs under
control. The upward pressure on wages has been a paramount concern of the Fed
because of the risk it poses for rekindling inflation. Wage costs have been
rising at about 4% over the reporting period, a rate that has significantly
outpaced inflation. New job creation has been strong over the reporting
period with the unemployment rate remaining at or near 25-year lows. Yet
inflation has stayed tame. The Consumer Price Index has risen 1.6% over the
past 12 months and a broader measure of the cost of living, the Gross
Domestic Product Price Deflator, has grown at a 1.4% rate over the last two
quarters of last year. The Producer Price Index was in outright decline over
the reporting period.
Restrained inflation has kept the Fed from increasing interest rates. The
last increase in short-term rates came in March 1997, when the target rate
for Federal Funds was raised by one-quarter of a percent to 5.5%. (The
Federal Funds rate is the rate of interest that banks charge one another for
overnight loans.)
Low interest rates have provided a strong fundamental underpinning for
interest rate-sensitive sectors of the economy such as housing. In this case,
the Asian crisis has actually proven a stimulus to consumer spending, since
international bond investors have sought the liquidity safety of U.S.
Government securities, causing interest rates to fall. This reduction in
borrowing costs has spurred mortgage refinancing, thus giving consumers
additional spending power. Mortgage rates have been at levels not seen since
the 1960s. The housing market, a critical segment of the economy, has
responded accordingly. New housing starts rose to their highest annual level
in over ten years, while resale rates of existing homes set records during
the reporting period. Overall spending on construction, both residential and
commercial, has been solid.
So far, the economy has remained remarkably robust and inflation-neutral.
We are sensitive to the longevity of this extraordinary economic advance and
are alert to evidence of a potential reversal in direction or an upsurge in
inflation.
MARKET ENVIRONMENT
The general fixed-income markets have traded in a range since
appreciating in late October, commensurate with the Asian economic crisis.
The municipal market initially benefited from the same improving trends as
the broader fixed-income markets. However, the new lower rates inspired the
scheduling of a large refinancing calendar that has since
depressed longer-term municipal securities. Most of this anticipated and
realized new supply of tax-exempt bonds has been issued in longer-term
maturity securities. While these financings generated a new supply of shorter
prerefunded bonds (they are the old bonds with shortened lives), they did not
create price-decline pressure in the shorter part of the municipal curve.
PORTFOLIO OVERVIEW
In the current environment, the Fund is invested in the most stable
sector of the tax-exempt bond market. With their relatively short maturities,
the securities in this sector have held their value (versus Treasuries)
better than other longer-term municipal securities. However, the sector is
not providing many new short-term investments to replace those in the Fund
that are maturing. In the reporting period, in some cases, we replaced some
shorter-term holdings with new securities in the three- to five-year part of
our range to continue to maintain our income performance. The Fund's goal
remains the same: to provide as high a level of Federally tax-exempt current
income as is consistent with the preservation of capital.
As always, we appreciate your investment in this Fund and the confidence
you have in our efforts to assist you in attaining your investment goals.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 17, 1998
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, 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 MARCH 31, 1998
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
$22,045
Lehman Brothers 10-Year Municipal Bond Index*
$17,184
Dreyfus Short-Intermediate Municipal Bond Fund
*Source: Lehman Brothers]
Average Annual Total Returns
One Year Ended Five Years Ended Ten Years Ended
March 31, 1998 March 31, 1998 March 31, 1998
____________________ ____________________ ____________________
<S> <C> <C> <C>
5.64% 4.26% 5.56%
</TABLE>
Presented above is a comparison of the Fund's past 10-year 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 3/31/88 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>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1998
Principal
Long-Term Municipal Investments-100.0% Amount Value
______________ ____________
<S> <C> <C>
Alaska-5.4%
Alaska Student Loan Corp., Student Loan Revenue:
4.70%, 7/1/1998........................................................... $ 3,060,000 $ 3,062,111
5.25%, 7/1/1999 (Insured; AMBAC).......................................... 3,100,000 3,150,189
5.25%, 7/1/2001 (Insured; AMBAC).......................................... 1,000,000 1,030,300
North Slope Borough:
Zero Coupon, 6/30/1999 (Insured; MBIA).................................... 1,000,000 952,980
Zero Coupon, 6/30/1999 (Insured; MBIA).................................... 4,000,000 3,811,920
Zero Coupon, 6/30/2000 (Insured; MBIA).................................... 2,500,000 2,282,200
Zero Coupon, 6/30/2001 (Insured; MBIA).................................... 2,000,000 1,744,960
California-3.0%
Sacramento County Housing Authority, MFHR
(Oars Apartments) 4.80%, 12/15/2000 (LOC; Dai Ichi Kangyo Bank) (a)....... 5,850,000 5,858,600
(Rancho Natamos Apartment) 4.80%, 12/15/2000 (LOC; Dai Ichi Kangyo Bank) (a) 3,000,000 3,003,480
Colorado-.9%
Denver City and County Airport, Revenue, Refunding:
5.05%, 11/15/2000......................................................... 1,495,000 1,528,413
5.10%, 11/15/2001......................................................... 1,160,000 1,191,935
Connecticut-2.3%
Greenwich Housing Authority, MFHR (Greenwich Close):
4.90%, 9/1/1999........................................................... 205,000 205,390
5.15%, 9/1/2000........................................................... 220,000 220,684
5.35%, 9/1/2001........................................................... 230,000 230,984
5.55%, 9/1/2002........................................................... 245,000 246,318
5.95%, 9/1/2006........................................................... 310,000 313,457
6.05%, 9/1/2007........................................................... 330,000 333,993
Mashantucket Western Pequot Tribe, Special Revenue:
6.25%, 9/1/2001 (b)....................................................... 2,500,000 2,665,125
6.25%, 9/1/2001 (b)....................................................... 2,500,000 2,655,725
District of Columbia-.6%
District of Columbia Redevelopment Land Agency, Special Tax Revenue
(Washington D.C. Sports Arena):
5.10%, 11/1/1998........................................................ 925,000 928,959
5.40%, 11/1/2000........................................................ 750,000 762,803
Florida-6.0%
Escambia County Health Facilities Authority, Health Facilities Revenue,
Refunding
(Azalea Trace Inc.):
4.75%, 1/1/2000......................................................... 790,000 795,024
5%, 1/1/2001............................................................ 830,000 839,819
5.10%, 1/1/2002......................................................... 870,000 884,016
Florida Housing Finance Agency, Multi-Family Housing:
5.35%, Series E, 6/1/2000................................................. 5,085,000 5,144,088
5.35%, Series F, 6/1/2000................................................. 2,000,000 2,023,240
5.35%, Series G, 6/1/2000................................................. 3,650,000 3,692,413
(The Crossings Project) 4.85%, 2/1/2001................................... 4,500,000 4,540,545
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
______________ ____________
Illinois-4.8%
Illinois Development Finance Authority, Revenue, Refunding
(Community Rehabilitation Providers):
5.60%, 7/1/2001......................................................... $ 1,530,000 $ 1,591,032
5.60%, 7/1/2002......................................................... 1,415,000 1,481,731
Illinois Health Facilities Authority, Revenue (Victory Health Services)
5%, 8/15/2002............................................................. 1,590,000 1,625,902
Robbins, RRR, Refunding (Robbins Resource Recovery Partners)
4.90%, 10/15/2002......................................................... 9,350,000 9,442,565
Iowa-.5%
Des Moines, HR, Refunding (Des Moines General Hospital)
5.05%, 11/15/2000 (LOC; Norwest Bank Minnesota) (a)....................... 1,545,000 1,581,647
Maryland-3.3%
Frederick County Retirement Community, Revenue (Extras-Buckinghams Choice):
5.25%, 1/1/2003........................................................... 1,500,000 1,501,365
5.375%, 1/1/2003.......................................................... 4,900,000 4,904,410
Maryland State Energy Financing Administration, SWDR
(Wheelabrator Water Projects):
5.10%, 12/1/1999........................................................ 1,000,000 1,018,120
5.30%, 12/1/2000........................................................ 1,250,000 1,285,700
5.45%, 12/1/2001........................................................ 1,000,000 1,039,420
Massachusetts-2.8%
Massachusetts Municipal Wholesale Electric Co.,
Power Supply System Revenue 5.20%, 7/1/1998............................... 5,000,000 5,017,700
New England Education Loan Marketing Corp., Massachusetts Student Loan
Revenue,
Refunding 5%, 6/1/1998.................................................... 3,400,000 3,405,440
Michigan-5.9%
Flint Hospital Building Authority, Revenue, Refunding (Hurley Medical
Center):
5.25%, 7/1/1998........................................................... 2,050,000 2,055,986
5.50%, 7/1/1999........................................................... 2,160,000 2,195,273
5.50%, 7/1/2000........................................................... 1,225,000 1,253,739
Michigan Hospital Finance Authority, Revenue, Refunding
(Hospital-Genesys Regional Medical):
5.25%, 10/1/2001........................................................ 2,000,000 2,053,280
5.25%, 10/1/2002........................................................ 1,000,000 1,030,660
5.25%, 10/1/2003........................................................ 2,445,000 2,523,851
Greater Detroit, Resource Recovery Authority, Revenue, Refunding
5%, 12/13/2000 (Insured; AMBAC)........................................... 2,500,000 2,566,450
Michigan Housing Development Authority, Rental Housing Revenue:
5%, 10/1/1999 (Insured; MBIA)............................................. 1,915,000 1,938,861
5.15%, 4/1/2000 (Insured; MBIA)........................................... 1,975,000 2,011,320
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
______________ ____________
Mississippi-.9%
Jackson Housing Authority, MFHR
(Arbor Park Apartment Project) 5.05%, 12/1/2001
(LOC; Deposit Guaranty National Bank) (a)................................. $ 2,500,000 $ 2,544,975
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 5,203,850
New Jersey Economic Development Authority, Wastepaper Recycling Revenue
(MPMI Inc. Project) 5.10%, 2/1/1999....................................... 900,000 903,726
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 1,585,545
New Mexico-2.1%
Albuquerque, Gross Receipts Tax Subordinate Lien (Affordable Housing Project)
5.375%, 7/1/2001.......................................................... 6,125,000 6,190,476
New York-32.8%
New York City:
4.85%, 2/15/2000.......................................................... 1,340,000 1,360,649
Refunding 4.85%, 2/15/2000................................................ 1,070,000 1,089,196
5%, 2/15/2000............................................................. 8,675,000 8,831,931
Refunding 5%, 2/15/2000................................................... 12,325,000 12,579,265
8%, 6/1/2000.............................................................. 2,190,000 2,375,646
5%, 10/15/2001............................................................ 4,300,000 4,431,193
5%, 10/15/2001............................................................ 3,200,000 3,284,384
7.50%, 2/1/2001........................................................... 5,000,000 5,431,850
5.10%, 2/15/2001.......................................................... 1,185,000 1,213,843
Refunding 5.10%, 2/15/2001................................................ 815,000 838,725
Refunding 5.50%, 8/1/2001................................................. 9,000,000 9,362,700
New York State Dormitory Authority, Revenue:
Lease, Refunding (State University Dormitory Facilities) 4.875%, 7/1/2000. 8,665,000 8,828,855
(Mental Health Services Facilities):
Refunding 5%, 2/15/2001................................................. 6,985,000 7,140,067
Refunding 5%, 8/15/2001................................................. 5,785,000 5,932,460
5%, 2/15/2002........................................................... 1,590,000 1,632,087
Refunding 5%, 2/15/2002................................................. 7,095,000 7,282,805
Refunding (City University System) 5.10%, 7/1/2001........................ 1,285,000 1,318,924
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 1,660,360
5%, 4/1/2002............................................................ 1,795,000 1,836,088
New York State Housing Finance Agency, Revenue, Refunding
(Health Facilities-New York City):
4.85%, 5/1/1999......................................................... 1,080,000 1,092,204
4.85%, 11/1/1999........................................................ 1,360,000 1,380,441
5.15%, 5/1/2000......................................................... 1,140,000 1,164,841
5.15%, 11/1/2000........................................................ 1,430,000 1,467,809
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
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 $ 1,014,760
Yonkers Industrial Development Agency, Civic Facility Revenue
(Saint Joseph Hospital Yonkers):
5.65%, Series A, 3/1/2003............................................... 3,000,000 3,014,130
5.65%, Series B, 3/1/2003............................................... 800,000 803,768
5.65%, Series C, 3/1/2003............................................... 1,200,000 1,205,652
North Carolina-3.1%
North Carolina Eastern Municipal Power Agency, Power System Revenue,
Refunding:
5.20%, 1/1/2001........................................................... 5,000,000 5,106,100
5%, 1/1/2002.............................................................. 4,000,000 4,072,160
North Dakota-.7%
North Dakota Housing Finance Agency, Revenue
(Housing Finance Program-Home Mortgage Finance) 4.60%, 1/1/2003........... 2,165,000 2,151,252
Ohio-1.4%
Montgomery County, HR (Grandview Hospital and Medical Center):
5.25%, 12/1/2001.......................................................... 1,900,000 1,951,756
5.25%, 12/1/2002.......................................................... 2,070,000 2,132,369
Oklahoma-.4%
Holdenville Industrial Authority, Correctional Facility Revenue
5.70%, 7/1/2001........................................................... 1,175,000 1,232,493
Pennsylvania-4.1%
Delaware County Industrial Development Authority, Revenue, Refunding
(Resource Recovery Facility) 5.30%, 1/1/2001.............................. 7,685,000 7,876,741
Philadelphia Hospitals and Higher Education Facilities Authority, HR
(Pennsylvania Hospital) 5.50%, 7/1/2000................................... 4,165,000 4,276,206
Rhode Island-1.7%
Rhode Island Housing and Mortgage Finance Corp., Multi-Family Housing,
Refunding
5%, 7/1/2000 (Insured; AMBAC)............................................. 5,000,000 5,089,550
South Carolina-1.0%
Charleston County Health Facilities, First Mortgage Revenue
(Episcopal Project) 5.30%, 10/1/2002...................................... 3,000,000 3,023,790
South Dakota-2.1%
South Dakota Student Loan Finance Corp., Student Loan
Revenue 5.70%, 8/1/1999..................................................... 6,000,000 6,147,120
Texas-7.0%
Bell County Health Facilities Development Corp., Revenue, Refunding
5.43%, 10/1/1998 (b,d).................................................... 11,100,000 11,183,250
Brazos Higher Education Authority Inc., Student Loan Revenue, Refunding
4.95%, 6/1/1998........................................................... 2,420,000 2,424,162
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
______________ ____________
Texas (continued)
Northeast Hospital Authority, Revenue, Refunding
(Northeast Medical Center Hospital):
5.10%, 5/15/2000........................................................ $ 1,230,000 $ 1,253,948
5.25%, 5/15/2001........................................................ 1,300,000 1,336,803
5.35%, 5/15/2002........................................................ 2,725,000 2,824,599
Tyler Health Facilities Development Corporation, Refunding (Mother Frances
Hospital):
5.25%, 7/1/2001........................................................... 700,000 714,070
5.25%, 7/1/2002........................................................... 1,200,000 1,226,688
Utah-1.7%
Intermountain Power Agency, Power Supply Revenue
5.05%, 7/1/2001 (Insured; MBIA)........................................... 5,035,000 5,185,043
Virginia-1.1%
Hopewell Industrial Development Authority,
Health Care Facility Revenue, Refunding:
(Colonial Heights) 5%, 10/1/1999........................................ 145,000 145,782
(Westport Convalescent Center) 5.15%, 10/1/2000......................... 205,000 206,633
Peninsula Ports Authority, Revenue, Refunding
4.875%, 7/1/1999 (LOC; Nationsbank of Virginia) (a)....................... 2,950,000 2,951,623
U.S. Related-1.8%
Guam Airport Authority, Revenue 5.80%, 10/1/1999............................ 1,705,000 1,749,124
Puerto Rico Municipal Finance Agency 5%, 7/1/1998........................... 3,655,000 3,667,061
_____________
TOTAL INVESTMENTS (cost $292,796,062)....................................... $297,555,651
=============
</TABLE>
<TABLE>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
<S> <C> <C>
Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
HR Hospital Revenue RRR Resources Recovery Revenue
LOC Letter of Credit SWDR Solid Waste Disposal Revenue
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 14.8%
AA Aa AA 10.2
A A A 43.7
BBB Baa BBB 25.5
Not Rated (f) Not Rated (f) Not Rated (f) 5.8
_______
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, 1998, these securities amounted to $16,504,100 or 5.6% 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.
(g) At March 31, 1998 the Fund had $87,271,647 (29.6% of net assets)
invested in securities whose payment of principal and interest is
dependent upon revenues generated from health care projects.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1998
Cost Value
______________ ____________
<S> <C> <C>
ASSETS: Investments in securities-See Statement
of Investments..................... $292,796,062 $297,555,651
Interest receivable........................ 4,039,851
Receivable for shares of Beneficial
Interest subscribed................ 5,280
Prepaid expenses........................... 27,329
____________
301,628,111
LIABILITIES: Due to The Dreyfus Corporation and ____________
affiliates......................... 143,652
Due to Distributor......................... 13,827
Cash overdraft due to Custodian............ 3,888,522
Bank loan payable.......................... 3,000,000
Payable for shares of Beneficial
Interest redeemed.................. 69,057
Accrued expenses........................... 81,331
_____________
7,196,389
NET ASSETS........................................................................... $294,431,722
=============
REPRESENTED BY: Paid-in capital..................................... $296,095,046
Accumulated net realized gain (loss)
on investments.............................. (6,422,913)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4....................... 4,759,589
_____________
NET ASSETS........................................................................... $294,431,722
=============
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST
AUTHORIZED)............................................................. 22,505,626
NET ASSET VALUE, offering and redemption price per share-Note 3(d)................... $13.08
==========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income............................ $14,917,123
EXPENSES: Management fee-Note 3(a)................... $ 1,506,201
Shareholder servicing costs-Note 3(b)...... 490,191
Trustees' fees and expenses-Note 3(c)...... 61,269
Registration fees.......................... 52,958
Professional fees.......................... 35,357
Custodian fees............................. 31,603
Prospectus and shareholders'
reports-Note 3(b)................... 19,600
Loan commitment fees-Note 2................ 2,650
Interest expense-Note 2.................... 500
Miscellaneous.............................. 94,600
____________
Total Expenses......................... 2,294,929
____________
INVESTMENT INCOME-NET....................................................... 12,622,194
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 99,128
Net unrealized appreciation (depreciation)
on investments..................... 3,904,464
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 4,003,592
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $16,625,786
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
March 31, 1998 March 31, 1997
_______________ ______________
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................... $ 12,622,194 $14,194,858
Net realized gain (loss) on investments.................................. 99,128 278,170
Net unrealized appreciation (depreciation) on investments................ 3,904,464 (1,727,475)
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations........ 16,625,786 12,745,553
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................... (12,622,194) (14,276,210)
Net realized gain on investments......................................... (14,169) (9,971)
_____________ _____________
Total Dividends........................................................ (12,636,363) (14,286,181)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold............................................ 72,622,100 187,552,735
Dividends reinvested..................................................... 10,786,887 12,180,467
Cost of shares redeemed.................................................. (117,979,739) (211,240,352)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial
Interest Transactions.......................................... (34,570,752) (11,507,150)
_____________ _____________
Total Increase (Decrease) in Net Assets.............................. (30,581,329) (13,047,778)
NET ASSETS:
Beginning of Period...................................................... 325,013,051 338,060,829
_____________ _____________
End of Period............................................................ $294,431,722 $325,013,051
============= =============
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold.............................................................. 5,571,759 14,483,518
Shares issued for dividends reinvested................................... 827,738 940,554
Shares redeemed.......................................................... (9,066,324) (16,315,596)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding.......................... (2,666,827) (891,524)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<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.
Year Ended March 31,
______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
______ ______ ______ ______ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $12.91 $12.97 $12.82 $13.02 $13.21
______ ______ ______ ______ ______
Investment Operations:
Investment income-net........................ .55 .56 .58 .57 .58
Net realized and unrealized gain (loss)
on investments............................. .17 (.06) .15 (.20) (.18)
______ ______ ______ ______ ______
Total from Investment Operations............. .72 .50 .73 .37 .40
______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net......... (.55) (.56) (.58) (.57) (.58)
Dividends from net realized gain on
investments.......................... - - - - (.01)
______ ______ ______ ______ ______
Total Distributions.......................... (.55) (.56) (.58) (.57) (.59)
______ _______ ______ ______ ______
Net asset value, end of period............... $13.08 $12.91 $12.97 $12.82 $13.02
====== ======= ====== ====== ======
TOTAL INVESTMENT RETURN.......................... 5.64% 3.96% 5.78% 2.93% 3.05%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .76% .80% .68% .70% .74%
Ratio of net investment income
to average net assets...................... 4.19% 4.33% 4.49% 4.42% 4.35%
Decrease reflected in above expense ratios
due to undertakings by the Manager......... - .02% .05% - -
Portfolio Turnover Rate...................... 31.12% 47.84% 44.39% 37.38% 34.68%
Net Assets, end of period (000's Omitted).... $294,432 $325,013 $338,061 $380,784 $598,274
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 $6,424,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1998. If not
applied, $3,551,000 of the carryover expires in fiscal 2003 and $2,873,000
expires in fiscal 2004.
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.
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The average daily amount of borrowings outstanding during the period ended
March 31, 1998 was approximately $8,200, with a
related weighted average annualized interest rate of 6.08%.
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 1 1/2% of the value of the Fund's average daily net assets,
the Fund may deduct from payments to be made to the Manager, or the Manager
will bear such excess expense. During the period ended March 31, 1998, there
was no expense reimbursement 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 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 March 31,
1998, the Fund was charged $308,774 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 March 31, 1998, the Fund was charged $98,146 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 and retained by the Fund 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 March 31, 1998
amounted to $93,681,410 and $125,828,759, respectively.
At March 31, 1998, accumulated net unrealized appreciation on investments
was $4,759,589 consisting of $4,778,153 gross unrealized appreciation and
$18,564 gross unrealized depreciation.
At March 31, 1998, 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, 1998, 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 the financial highlights. Our procedures
included confirmation of securities owned as of March 31, 1998 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, 1998,
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
May 1, 1998
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, 1998 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 1998 calendar year
on Form 1099-DIV which will be mailed by January 31, 1999.
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. 591AR983
Registration Mark
[Dreyfus logo]
Short-Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1998
