DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
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LETTER TO SHAREHOLDERS
Dear Shareholders:
We are pleased to provide you with this report on Dreyfus Short-Intermediate
Municipal Bond Fund for the six-month period ended September 30, 1998. Your Fund
produced a total return, including share price changes and dividend income
generated, of 2.58%,* and an annualized tax-free distribution rate per share of
4.17%.**
THE ECONOMY
The risk of global recession loomed large by the end of the reporting period.
Since last summer, the international economic crisis has spread from Asia and
Russia into Latin America and its effects are evident in the U.S., as witnessed
by early signs of a slowing in our domestic economy. Second-quarter gross
domestic product grew at an annual rate of 1.8%, well below the 5.5% rate in the
first quarter, while the trade deficit has continued to widen, affected by
weakening foreign demand and low-priced imports. These developments have
heightened a sense of global economic interdependence and have resulted in a
shift in emphasis by the Federal Reserve Board whereby fighting inflation has
taken a subordinate role to that of maintaining stable U.S. economic growth. As
Fed Chairman Alan Greenspan noted in early September: "It is just not credible
that the United States can remain an oasis of prosperity unaffected by a world
that is experiencing greatly increased stress." On September 29, the Federal
Open Market Committee cut interest rates for the first time since January 1996.
That, and a second quarter-point reduction taking the Federal Funds target rate
to 5% , was designed to cushion the adverse effects of the overseas economic
crisis on the domestic economy. (The Federal Funds rate is the interest rate
that banks charge each other for overnight loans.)
So far, shock waves from the overseas economic turmoil have been dampened by
the continued propensity of U.S. consumers to spend. In the first half of the
year, their spending outpaced earned income, an unsustainable phenomenon, yet a
telling indicator of the level of consumer optimism. The reasons for such
optimism are no surprise. Inflation remains tame, running at an annual rate
comfortably below 2% . After-tax income is growing. Of great economic and
psychological importance to consumers, jobs are plentiful; the unemployment rate
has been at or near 30-year lows throughout the reporting period and new jobs
have been created at a robust pace.
While the corporate sector wrestles with the economic implications of global
developments, consumers have powered the economy. The consumer sector comprises
two thirds of the activity in the $8-trillion U.S. economy and, with the
business sector slowing (corporate profits declined in the second quarter for
the first time in nearly a decade) , any significant pullback in household
spending could trigger a recession. Up to now, the spillover effect from
developments abroad has been largely confined to the manufacturing sector, whose
activity has contracted of late due to the falloff in foreign demand. Aside from
this "erosion at the edges" as Chairman Greenspan describes it, layoffs on a
broader scale--a factor that could weaken consumer resolve to spend--so far have
not occurred. It is clear that the Fed is concerned about the possibility of
worldwide recession. The October interest rate reduction was another step by the
Fed to mitigate the domestic effects of international financial turmoil, and a
gesture meant to serve notice to the world of the seriousness of its purpose.
MARKET ENVIRONMENT
While the Treasury bond market has appreciated in historic patterns due to the
continued impact commensurate with the Asian economic crisis, and more recently
from the domestic financial concerns involving hedge funds, general fixed-income
markets have lagged. The municipal market, while underperforming the Treasury
market, has benefited from the same improving trends and the recent 25 basis
point cut in the Fed Funds target rate. As a result, the prices of municipal
bonds have moved in a positive direction throughout all maturities to new highs.
In general, during the period, most of the anticipated and realized new supply
of tax-exempt bonds have been issued in longer-term maturity securities. While
these financings can generate a new supply of shorter pre-refunded bonds (these
are the old bonds with shortened lives), neither newly-issued debt nor newly
created prerefunded debt during the reporting period created price-decline
pressure in the shorter part of the municipal curve, which would have adversely
impacted your Fund.
PORTFOLIO OVERVIEW
In the current environment, your Fund is invested in a very stable sector of
the tax-exempt market. During the reporting period, securities in the
short-to-intermediate maturity range held their value versus comparable
Treasuries better than other municipal securities. However, the sector is not
providing many new attractive investments to replace those that are nearing
maturity in the Fund. As a result we are holding some securities while we search
for replacements. As a portfolio strategy during this reporting period, we have
held, or only judiciously replaced, our holdings. At the same time we have
shortened the average life of the Fund in an effort to achieve the best income
return to risk trade-off possible in our maturity range. This has been
accomplished by having current successful positions age and by trading bonds for
shorter maturity holdings that provide similar income to that generated by the
bonds previously held.
The Fund' s goal remains the same: to provide as high a level of tax-exempt
current income as is consistent with preservation of capital. While we have been
successful in providing an attractive level of income during the reporting
period, it is reasonable to expect that at some point lower income securities
may enter the Fund as interest rates move lower.
A list of the portfolio's holdings and other information is enclosed as a part
of this report. We hope that as you review these materials, you will find them
informative.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 16, 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 (annualized), divided by the net asset value
per share at the end of the period. Some income may be subject to the Federal
Alternative Minimum Tax (AMT) for certain shareholders.
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--97.7% Amount Value
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<S> <C> <C>
Alaska--4.5%
Alaska Student Loan Corp., Student Loan Revenue:
5.25%, 7/1/1999 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,100,000 $ 3,137,944
5.25%, 7/1/2001 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,033,270
North Slope Borough:
Zero Coupon, 6/30/1999 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 975,030
Zero Coupon, 6/30/1999 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 3,900,120
Zero Coupon, 6/30/2000 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,342,225
Zero Coupon, 6/30/2001 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,802,840
California--3.0%
Sacramento County Housing Authority, MFHR:
(Oars Apartments) 4.80%, 12/15/2000 (LOC; Dai Ichi Kangyo Bank) . . . . . . . . . . . . 5,850,000 5,864,216
(Rancho Natamos Apartment) 4.80%, 12/15/2000 (LOC; Dai Ichi Kangyo Bank) . . . . . . . 3,000,000 3,006,390
Colorado--.9%
Denver City and County Airport, Revenue, Refunding:
5.05%, 11/15/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,495,000 1,524,616
5.10%, 11/15/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,160,000 1,192,619
Connecticut--2.9%
Connecticut Development Authority, First Mortgage Gross Revenue, Refunding
(Health Care Project-Elim Park Baptist) 4.70%, 12/01/2001 . . . . . . . . . . . . . . . 1,765,000 1,771,672
Greenwich Housing Authority, MFHR (Greenwich Close):
4.90%, 9/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205,000 205,691
5.15%, 9/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220,000 221,507
5.35%, 9/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230,000 232,275
5.55%, 9/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245,000 248,168
5.95%, 9/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310,000 317,843
6.05%, 9/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330,000 339,131
Mashantucket Western Pequot Tribe, Special Revenue:
6.25%, 9/1/2001 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,677,500
6.25%, 9/1/2001 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,659,825
District of Columbia--.6%
District of Columbia Redevelopment Land Agency, Special Tax Revenue
(Washington D.C. Sports Arena):
5.10%, 11/1/1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 925,000 925,934
5.40%, 11/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 767,933
Florida--6.1%
Escambia County Health Facilities Authority, Health Facilities Revenue,
Refunding
(Azalea Trace Inc.):
4.75%, 1/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790,000 797,268
5%, 1/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830,000 845,778
5.10%, 1/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 870,000 893,916
Florida Housing Finance Agency, Multi-Family Housing:
5.35%, Series E, 6/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,085,000 5,121,968
5.35%, Series F, 6/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,014,540
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Florida (continued)
Florida Housing Finance Agency, Multi-Family Housing (continued):
5.35%, Series G, 6/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,650,000 $ 3,676,536
(The Crossings Project) 4.85%, 2/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . 4,500,000 4,551,210
Illinois--1.6%
Illinois Development Finance Authority, Revenue, Refunding
(Community Rehabilitation Providers):
5.60%, 7/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,530,000 1,596,754
5.60%, 7/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,415,000 1,493,080
Illinois Health Facilities Authority, Revenue (Victory Health Services)
5%, 8/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,590,000 1,646,191
Iowa--.5%
Des Moines, HR, Refunding (Des Moines General Hospital)
5.05%, 11/15/2000 (LOC; Norwest Bank Minnesota) . . . . . . . . . . . . . . . . . . . . 1,545,000 1,586,221
Maryland--3.3%
Frederick County Retirement Community, Revenue (Extras-Buckinghams Choice):
5.25%, 1/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,506,915
5.375%, 1/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,900,000 4,922,540
Maryland State Energy Financing Administration, SWDR
(Wheelabrator Water Projects):
5.10%, 12/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,018,150
5.30%, 12/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,289,363
5.45%, 12/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,047,100
Massachusetts--1.7%
Massachusetts Industrial Finance Agency, Refunding:
RRR (Odgen) 4.70%, 12/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,046,590
Revenue (Chestnut Knoll) 5%, 2/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,009,220
Michigan--5.3%
Flint Hospital Building Authority, Revenue, Refunding (Hurley Medical Center):
5.50%, 7/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,160,000 2,188,469
5.50%, 7/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,225,000 1,255,931
Michigan Hospital Finance Authority, Revenue, Refunding
(Hospital-Genesys Regional Medical):
5.25%, 10/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,069,500
5.25%, 10/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,042,060
5.25%, 10/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,445,000 2,563,118
Greater Detroit, Resource Recovery Authority, Revenue, Refunding
5%, 12/13/2000 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,569,925
Michigan Housing Development Authority, Rental Housing Revenue:
5%, 10/1/1999 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,915,000 1,935,050
5.15%, 4/1/2000 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,975,000 2,008,615
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
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) . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,500,000 $ 2,553,825
New Jersey--4.8%
Monroe Township Municipal Utilities Authority, Water and Sewer System Revenue,
Refunding
6.875%, 2/1/2017 (Insured; MBIA) (Prerefunded 2/1/2000) (b) . . . . . . . . . . . . 5,000,000 5,298,750
New Jersey Economic Development Authority, First Mortgage Revenue
(Cadbury Corp. Project):
4.80%, 7/1/2001 (Insured; ACA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,565,000 1,586,628
5%, 7/1/2003 (Insured; ACA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,410,000 1,442,190
New Jersey Economic Development Authority, Wastepaper Recycling Revenue
(MPMI Inc. Project) 5.10%, 2/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000 902,052
New Jersey Health Care Facilities Financing Authority, Revenue
(Saint Peter's Medical Center) 6%, 7/1/2001 (Insured; MBIA) (Prerefunded 7/1/2001) (b) . 1,500,000 1,592,040
Bayonne Municipal Utilities Authority, Sewer Project Note
4.60%, 5/7/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400,000 3,416,796
New Mexico--2.8%
Albuquerque, Gross Receipts Tax Subordinate Lien (Affordable Housing Project)
5.375%, 7/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,125,000 6,190,538
Santa Fe County, Project Revenue
(El Castillo Retirement) 5.25%, 5/15/2003 . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,010,380
New York--31.0%
New York City:
4.85%, 2/15/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,340,000 1,360,958
Refunding 4.85%, 2/15/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,070,000 1,089,057
5%, 2/15/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,675,000 8,827,940
Refunding 5%, 2/15/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,325,000 8,489,169
5%, 10/15/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,300,000 4,469,764
5%, 10/15/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,200,000 3,308,256
7.50%, 2/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,405,050
5.10%, 2/15/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,185,000 1,219,614
Refunding 5.10%, 2/15/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815,000 842,743
Refunding 5.50%, 8/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000,000 9,405,450
New York State Dormitory Authority, Revenue:
Lease, Refunding (State University Dormitory Facilities) 4.875%, 7/1/2000 . . . . . . . 8,665,000 8,842,459
(Mental Health Services Facilities):
Refunding 5%, 2/15/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,985,000 7,173,316
Refunding 5%, 8/15/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,785,000 5,971,046
5%, 2/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,590,000 1,645,507
Refunding 5%, 2/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,095,000 7,342,686
Refunding (City University System) 5.10%, 7/1/2001 . . . . . . . . . . . . . . . . . . 1,285,000 1,327,688
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New York (continued)
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 $ 1,670,549
5%, 4/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,795,000 1,858,758
New York State Housing Finance Agency, Revenue, Refunding
(Health Facilities-New York City):
4.85%, 5/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,080,000 1,089,288
4.85%, 11/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,360,000 1,380,250
5.15%, 5/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,140,000 1,165,114
5.15%, 11/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,430,000 1,470,283
New York State Urban Development Corp., Revenue, Refunding
(Onondaga County Convention Project) 4.875%, 1/1/2000 . . . . . . . . . . . . . . . . . 1,000,000 1,014,750
Yonkers Industrial Development Agency, Civic Facility Revenue
(Saint Joseph Hospital Yonkers):
5.65%, Series A, 3/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,060,210
5.65%, Series B, 3/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 816,056
5.65%, Series C, 3/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000 1,224,084
North Carolina--3.1%
North Carolina Eastern Municipal Power Agency, Power System Revenue, Refunding:
5.20%, 1/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,121,200
5%, 1/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,101,000
North Dakota--.7%
North Dakota Housing Finance Agency, Revenue
(Housing Finance Program-Home Mortgage Finance) 4.60%, 1/1/2003 . . . . . . . . . . . . 2,165,000 2,193,362
Ohio--2.0%
Belmont County, Health System Revenue (East Ohio Regional Hospital):
4.30%, 1/1/2001 (Insured; ACA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 806,712
4.40%, 1/1/2002 (Insured; ACA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000 911,241
Montgomery County, HR (Grandview Hospital and Medical Center):
5.25%, 12/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,900,000 1,969,065
5.25%, 12/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,070,000 2,161,473
Oklahoma--.4%
Holdenville Industrial Authority, Correctional Facility Revenue
5.70%, 7/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,175,000 1,238,262
Pennsylvania--5.0%
Dauphin County General Authority, Revenue
(Office and Package-Riverfront Office) 5.125%, 1/1/2003 . . . . . . . . . . . . . . . . 2,620,000 2,641,877
Delaware County Industrial Development Authority, Revenue, Refunding
(Resource Recovery Facility) 5.30%, 1/1/2001 . . . . . . . . . . . . . . . . . . . . . 7,685,000 7,876,817
Philadelphia Hospitals and Higher Education Facilities Authority, HR
(Pennsylvania Hospital) 5.50%, 7/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . 4,165,000 4,291,199
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Rhode Island--1.7%
Rhode Island Housing and Mortgage Finance Corp., Multi-Family Housing, Refunding
5%, 7/1/2000 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 $ 5,088,200
South Carolina--1.0%
Charleston County Health Facilities, First Mortgage Revenue
(Episcopal Project) 5.30%, 10/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,048,180
South Dakota--2.1%
South Dakota Student Loan Finance Corp., Student Loan Revenue 5.70%, 8/1/1999. . . . . . . 6,000,000 6,112,260
Texas--6.9%
Bell County Health Facilities Development Corp., Revenue:
5.38%, 10/1/1998 (a,c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,850,000 7,840,187
Refunding (Central Texas Pooled Health) 4.75%, 10/1/1998 . . . . . . . . . . . . . . . 50,000 50,000
Brazos River Authority, PCR, Refunding
(Utilities Electric Co.) 4.15%, 6/18/1999 . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,009,200
Northeast Hospital Authority, Revenue, Refunding
(Northeast Medical Center Hospital):
5.10%, 5/15/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,230,000 1,255,104
5.25%, 5/15/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000 1,343,004
5.35%, 5/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,725,000 2,847,870
Tyler Health Facilities Development Corporation, Refunding (Mother Frances
Hospital)
5.25%, 7/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000 719,516
5.25%, 7/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000 1,241,772
Virginia--2.4%
Hopewell Industrial Development Authority, Health Care Facility Revenue,
Refunding:
(Colonial Heights) 5%, 10/01/1999 . . . . . . . . . . . . . . . . . . . . . . . . . 145,000 145,951
(Westport Convalescent Center) 5.15%, 10/1/2000 . . . . . . . . . . . . . . . . . . 205,000 207,492
Peninsula Ports Authority, Revenue, Refunding
4.875%, 7/1/1999 (LOC; Nationsbank of Virginia) . . . . . . . . . . . . . . . . . . . . 2,885,000 2,888,288
Rockingham County Industrial Development Authority,
Residential Care Facility, Revenue (First Mortgage-Mennonite) 5.10%, 4/1/2003 . . . . . 3,800,000 3,819,608
U.S. Related--2.5%
Guam Airport Authority, Revenue 5.80%, 10/1/1999 . . . . . . . . . . . . . . . . . . . . . 1,705,000 1,741,709
Virgin Islands Public Finance Authority, Revenue, Refunding
5%, 10/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,580,000 5,789,752
_____________
TOTAL INVESTMENTS
(cost $283,082,012) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97.7% $288,766,302
_______ _____________
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3% $ 6,792,467
_______ _____________
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $295,558,769
_______ _____________
_______ _____________
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <S> <C>
ACA American Capital Access Financial Guaranty Corporation MFHR Multi-Family Housing Revenue
AMBAC American Municipal Bond Assurance Corporation PCR Pollution Control Revenue
HR Hospital Revenue RRR Resources Recovery Revenue
LOC Letter of Credit SWDR Solid Waste Disposal Revenue
MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
_______ ________ __________________ ____________________
<S> <C> <C> <C>
AAA Aaa AAA 15.0%
AA Aa AA 11.5
A A A 36.4
BBB Baa BBB 26.4
F1 MIG1/P1 SP1/A1 1.0
Not Rated (d) Not Rated (d) Not Rated (d) 9.7
_______
100.0%
_______
_______
</TABLE>
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,
1998, these securities amounted to $13,177,513 or 4.5% of net assets.
(b) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and interest
on the municipal issue and to retire the bonds in full at the earliest
refunding date.
(c) Inverse floater security-the interest rate is subject to change
periodically.
(d) 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.
(e) At September 30, 1998, the Fund had 31.3% 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>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1998 (UNAUDITED)
Cost Value
____________ ____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $283,082,012 $288,766,302
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 3,232,112
Interest receivable . . . . . . . . . . . . . . . . . . . 3,793,315
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 36,437
_____________
295,828,166
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 127,623
Due to Distributor . . . . . . . . . . . . . . . . . . . 21,779
Payable for shares of Beneficial Interest redeemed . . . 1,000
Accrued expenses . . . . . . . . . . . . . . . . . . . . 118,995
_____________
269,397
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $295,558,769
_____________
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $296,028,479
Accumulated net realized gain (loss) on investments . . . (6,154,000)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 5,684,290
_____________
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $295,558,769
_____________
_____________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORITZED). . . . . . 22,498,681
NET ASSET VALUE, offering and redemption price per share--Note 3(d). . . . . . . . . . . . $13.14
_______
_______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED)
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income . . . . . . . . . . . . . . . . . $7,230,254
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $730,148
Shareholder servicing costs--Note 3(b) . . . . . 225,604
Professional fees . . . . . . . . . . . . . . . . 28,845
Trustees' fees and expenses--Note 3(c) . . . . . 26,045
Registration fees . . . . . . . . . . . . . . . . 23,502
Custodian fees . . . . . . . . . . . . . . . . . 14,782
Prospectus and shareholders' reports--Note 3(b) . 10,235
Loan commitment fees--Note 2 . . . . . . . . . . 1,069
Interest expense--Note 2 . . . . . . . . . . . . 766
Miscellaneous . . . . . . . . . . . . . . . . . . 52,451
__________
Total Expenses . . . . . . . . . . . . . . . . 1,113,447
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,116,807
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . $ 268,913
Net unrealized appreciation (depreciation)
on investments . . . . . . . . . . . . . . . . 924,701
__________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 1,193,614
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $7,310,421
___________
___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1998 Year Ended
(Unaudited) March 31, 1998
________________ _________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,116,807 $ 12,622,194
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 268,913 99,128
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . 924,701 3,904,464
______________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . 7,310,421 16,625,786
______________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,116,807) (12,622,194)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . ------ (14,169)
______________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,116,807) (12,636,363)
______________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 44,608,919 72,622,100
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,247,992 10,786,887
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (49,923,478) (117,979,739)
______________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . (66,567) (34,570,752)
______________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . 1,127,047 (30,581,329)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294,431,722 325,013,051
______________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $295,558,769 $294,431,722
______________ _____________
______________ _____________
Shares Shares
______________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,410,749 5,571,759
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . 401,179 827,738
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,818,873) (9,066,324)
______________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . (6,945) (2,666,827)
______________ _____________
______________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Six Months Ended
September 30, 1998 Year Ended March 31,
_____________________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
____________________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . $13.08 $12.91 $12.97 $12.82 $13.02 $13.21
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . .27 .55 .56 .58 .57 .58
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . .06 .17 (.06) .15 (.20) (.18)
_______ _______ _______ _______ _______ _______
Total from Investment Operations . . . . . .33 .72 .50 .73 .37 .40
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . (.27) (.55) (.56) (.58) (.57) (.58)
Dividends from net realized gain on investments -- -- -- -- -- (.01)
_______ _______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . (.27) (.55) (.56) (.58) (.57) (.59)
_______ _______ _______ _______ _______ _______
Net asset value, end of period . . . . . . $13.14 $13.08 $12.91 $12.97 $12.82 $13.02
_______ _______ _______ _______ _______ _______
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . 5.15%(1) 5.64% 3.96% 5.78% 2.93% 3.05%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . .76%(1) .76% .80% .68% .70% .74%
Ratio of net investment income
to average net assets . . . . . . . . . 4.19%(1) 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 . . . . . . . . . . 11.70%(2) 31.12% 47.84% 44.39% 37.38% 34.68%
Net Assets, end of period (000's Omitted) . . $295,559 $294,432 $325,013 $338,061 $380,784 $598,274
- ------------
(1) Annualized.
(2) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
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, as amended (the "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 (the "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. Under the terms of the custody
agreement, the Fund receives net earnings credits based on available cash
balances left on deposit.
(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 of 1986, as
amended (the "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 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.
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 redemption credit
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 the committed portion of this redemption credit facility.
Interest is charged to the Fund at rates based on prevailing market rates in
effect at the time of borrowings.
The average daily amount of borrowings outstanding during the period ended
September 30, 1998 was approximately $20,200, with related weighted average
annualized interest rate of 3.79%.
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 September 30, 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 September 30, 1998, the Fund was charged $148,966 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, 1998, the Fund was charged $37,672 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 redemption or exchange occurs less than fifteen
days following the date of issuance.
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended September 30, 1998
amounted to $33,960,926 and $43,965,521, respectively.
At September 30, 1998, accumulated net unrealized appreciation on investments
was $5,684,290 consisting of $5,694,103 gross unrealized appreciation and $9,813
gross unrealized depreciation.
At September 30, 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 lion "d" logo (reg.tm)
Dreyfus logo (reg.tm)
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. 591SA989
Short-Intermediate
Municipal
Bond Fund
Semi-Annual
Report
September 30, 1998
