Dreyfus
Short-Intermediate
Municipal Bond Fund
SEMIANNUAL REPORT
September 30, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues
(Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
13 Statement of Assets and Liabilities
14 Statement of Operations
15 Statement of Changes in Net Assets
16 Financial Highlights
17 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Short-Intermediate
Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Short-Intermediate
Municipal Bond Fund, covering the six-month period from April 1, 1999 through
September 30, 1999. Inside, you'll find valuable information about how the fund
was managed during the reporting period, including a discussion with the fund's
portfolio manager, Samuel Weinstock.
When the reporting period began, evidence had emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might re-emerge caused the Federal Reserve Board to raise short-term interest
rates twice during the summer of 1999, effectively offsetting most of last
fall's interest-rate cuts. Higher interest rates led to some erosion of
municipal bond prices, especially toward the end of the reporting period.
In this environment, however, the yields of tax-exempt bonds have recently been
quite attractive compared to the after-tax yields of taxable bonds of comparable
maturity and credit quality. This is especially true for investors in the higher
federal income tax brackets.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Short-Intermediate Municipal Bond Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 15, 1999
DISCUSSION OF FUND PERFORMANCE
Samuel Weinstock, Portfolio Manager
How did Dreyfus Short-Intermediate Municipal Bond Fund perform during the
period?
The fund produced a 0.81% total return over the six-month period ended September
30, 1999,(1) compared to a .51% total return for the Lipper Short-Intermediate
Municipal Debt Funds category average.(2) We attribute our relative
outperformance to our security selection strategy, which has recently focused on
shorter maturity bonds that both help cushion the effects of higher interest
rates and give us the flexibility to capture higher yields as they become
available.
What is the fund's investment approach?
Our goal is to seek a high level of tax-exempt income from a diversified
portfolio of municipal bonds with maturities of less than five years. In pursuit
of this goal, we have attempted to manage the portfolio with an eye toward
maintaining or improving income. Total return, which includes capital gains, is
not a primary objective.
To achieve these objectives, we employ four primary strategies. First, we strive
to identify the maturity range that we believe will provide the most favorable
returns over the next year or two. Second, we evaluate issuers' credit quality
to find bonds that we believe provide high yields at attractive prices. Third,
we look for bonds with attractively high interest payments, even if they sell at
a premium to face value. Fourth, we assess individual bonds' early redemption
features, focusing on those that cannot be redeemed quickly by their issuers.
Typically, the bonds we select for the portfolio will have several of these
qualities.
We also evaluate the bonds' likely performance under various market scenarios.
We generally select securities that we believe are most likely to provide the
best returns over an anticipated range of interest-rate levels. In other cases,
we hold certain securities because of our belief that they will participate
strongly in market rallies and provide protection against market declines.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
First, and perhaps most important, the Federal Reserve Board increased
short-term interest rates twice during the summer in an attempt to forestall
inflationary pressures. While the U.S. economy has continued to grow with little
actual increase in inflation, the Federal Reserve Board is concerned that
continued unrestrained growth could cause dormant inflationary pressures to
re-awaken. This tightening of the nation's monetary policy -- which essentially
rescinds two-thirds of 1998's interest-rate cuts -- led to higher yields for
most fixed-income securities. Because bond prices and yields move in opposite
directions, municipal bond prices fell.
Second, strong economic conditions have contributed to the nation's first
federal budget surplus in many years. While the government has had less need to
issue U.S. Treasury securities, demand has remained high from domestic and
overseas investors. This imbalance between supply and demand constrained the
rise of taxable bond yields relative to tax-exempt bonds. As a result, municipal
bonds are currently offering tax-exempt yields that compare very favorably with
taxable yields after adjusting for taxes.
What is the fund's current strategy?
We continue to search for attractive bonds in the short- to intermediate-term
maturity range. When we identified bonds that we believed would help us maintain
or increase risk-adjusted returns, we attempted to upgrade the portfolio by
replacing existing holdings with new, more attractive securities. Over the past
six months, this strategy has led us primarily to invest in bonds with
relatively short maturities. In fact, as of September 30, more than half of the
portfolio consisted of bonds maturing in slightly over two years. In our
opinion, the most attractive values have been available in this maturity range.
What's more, many of our more recent purchases have been industrial development
revenue bonds that were issued to finance economic development in various
localities. These bonds have been more widely available than many other types of
bonds, and they have generally offered the combination of competitive yields
and good credit quality that we seek. These bonds may be subject to the
Federal Alternative Minimum Tax for certain investors.
Finally, we have attempted to maintain a "laddered" maturity structure. This
involves constructing a portfolio that is diversified across the fund's full
maturity range. When interest rates are relatively high, as we believe they are
currently, maturing bonds are likely to be replaced with higher yielding
securities. When interest rates are relatively low, a laddered strategy helps
ensure that, as securities mature, others with similar or higher yields will
remain in the portfolio to help support an ongoing income stream.
October 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX
(AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
STATEMENT OF INVESTMENTS
September 30, 1999 (Unaudited)
<TABLE>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--100.1% Amount ($) Value ($)
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<S> <C> <C>
ALASKA--1.8%
Alaska Student Loan Corp., Student Loan Revenue
5.25%, 7/1/2001 (Insured; AMBAC) 1,000,000 1,014,540
North Slope Borough:
Zero Coupon, 6/30/2000 (Insured; MBIA) 2,500,000 2,427,650
Zero Coupon, 6/30/2001 (Insured; MBIA) 2,000,000 1,854,600
CALIFORNIA--4.2%
Riverside County Public Financing Authority, COP:
5%, 5/15/2002 930,000 928,819
5%, 5/15/2003 980,000 974,816
5.125%, 5/15/2004 1,030,000 1,023,254
5.125%, 5/15/2005 500,000 492,660
Sacramento County Housing Authority, MFHR:
(Oars Apartments) 4.80%, 12/15/2000
(LOC; Dai Ichi Kangyo Bank) 5,850,000 5,849,590
(Rancho Natamos Apartment) 4.80%, 12/15/2000
(LOC; Dai Ichi Kangyo Bank) 3,000,000 3,004,290
COLORADO--.9%
Denver City and County Airport, Revenue:
5.05%, 11/15/2000 1,495,000 1,505,196
5.10%, 11/15/2001 1,160,000 1,166,252
CONNECTICUT--4.8%
Connecticut Development Authority:
First Mortgage Gross Revenue
(Health Care Project--Elim Park Baptist)
4.70%, 12/1/2001 1,765,000 1,750,915
Health Care Revenue
(Jerome Home Project) 8%, 11/01/2019
(Prerefunded 11/1/1999) 1,845,000 (a) 1,888,265
Connecticut Resources Recovery Authority, RRR
(American Fuel Company) 3.80%, 11/15/1999 6,750,000 6,747,570
Greenwich Housing Authority, MFHR (Greenwich Close):
5.15%, 9/1/2000 220,000 219,659
5.35%, 9/1/2001 230,000 229,246
5.55%, 9/1/2002 245,000 243,817
5.95%, 9/1/2006 310,000 307,560
6.05%, 9/1/2007 330,000 326,918
Mashantucket Western Pequot Tribe, Special Revenue
6.25%, 9/1/2001 2,500,000 (b) 2,599,325
DISTRICT OF COLUMBIA--3.7%
District of Columbia, GO 5.50%, 6/1/2002 9,930,000 10,140,119
District of Columbia Redevelopment Land Agency, Special Tax
Revenue (Washington D.C. Sports Arena) 5.40%, 11/1/2000 750,000 757,845
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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FLORIDA--6.0%
Escambia County Health Facilities Authority, Health Facilities
Revenue (Azalea Trace Inc.):
4.75%, 1/1/2000 790,000 790,300
5%, 1/1/2001 830,000 832,963
5.10%, 1/1/2002 870,000 872,993
Florida Housing Finance Agency, Multi-Family Housing:
5.35%, Series E, 6/1/2000 5,085,000 5,092,221
5.35%, Series F, 6/1/2000 2,000,000 2,003,140
5.35%, Series G, 6/1/2000 3,650,000 3,655,731
(The Crossings Project) 4.85%, 2/1/2001 4,500,000 4,499,145
ILLINOIS--3.4%
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers):
5.60%, 7/1/2001 1,530,000 1,546,264
5.60%, 7/1/2002 1,415,000 1,434,357
8.50%, 9/1/2010 (Prerefunded 9/1/2000) 2,985,000 (a) 3,160,966
Illinois Health Facilities Authority, Revenue:
(Victory Health Services) 5%, 8/15/2002 1,590,000 1,593,498
(Beverly Farm Foundation) 9.125%, 12/15/2015
(Prerefunded 12/15/2000) 2,000,000 (a) 2,175,920
IOWA--.5%
Des Moines, HR (Des Moines General Hospital)
5.05%, 11/15/2000 1,545,000 1,560,357
LOUISIANA--1.7%
Saint Charles Parish, PCR
(Entergy La Inc. Project) 4.85%, 6/1/2002 5,000,000 4,970,050
MARYLAND--3.3%
Frederick County Retirement Community, Revenue
(Extras-Buckinghams Choice):
5.25%, 1/1/2002 1,500,000 1,501,455
5.375%, 1/1/2003 4,900,000 4,906,272
Maryland State Energy Financing Adminitration, SWDR
(Wheelabrator Water Projects):
5.10%, 12/1/1999 1,000,000 1,002,040
5.30%, 12/1/2000 1,250,000 1,266,750
5.45%, 12/1/2001 1,000,000 1,017,640
MASSACHUSETTS--2.6%
Massachusetts Health & Educational Facilities Authority, Revenue
(Caritas Christi Obligation Group) 5.25%, 7/1/2003 5,730,000 5,732,980
Massachusetts Industrial Finance Agency, Revenue
(Chestnut Knoll) 5%, 2/1/2003 2,000,000 1,972,700
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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MICHIGAN--5.7%
Flint Hospital Building Authority, Revenue
(Hurley Medical Center) 5.50%, 7/1/2000 1,225,000 1,233,391
Greater Detroit, Resource Recovery Authority, Revenue
5%, 12/13/2000 (Insured; AMBAC) 2,500,000 2,532,725
Michigan Hospital Finance Authority, HR
(Genesys Regional Medical):
5.25%, 10/1/2001 2,000,000 2,020,100
5.25%, 10/1/2002 1,000,000 1,011,160
5.25%, 10/1/2003 2,445,000 2,470,721
Michigan Housing Development Authority, Rental
Housing Revenue: 5%, 10/1/1999 (Insured; MBIA) 1,915,000 1,915,019
5.15%, 4/1/2000 (Insured; MBIA) 1,975,000 1,980,313
Michigan Strategic Fund, LOR
(Detroit Edison) 4.73%, 9/1/2001 3,750,000 3,751,237
MISSISSIPPI--.8%
Jackson Housing Authority, MFHR
(Arbor Park Apartment Project) 5.05%, 12/1/2001 2,500,000 2,508,375
NEW HAMPSHIRE--1.7%
New Hampshire Business Finance Authority, PCR
(United Illuminated) 4.55%, 2/1/2004 5,000,000 4,885,350
NEW JERSEY--3.3%
Monroe Township Municipal Utilities Authority,
Water and Sewer System Revenue
6.875%, 2/1/2017 (Insured; MBIA) 5,000,000 5,150,350
New Jersey Economic Development Authority,
First Mortgage Revenue
(Cadbury Corp. Project):
4.80%, 7/1/2001 1,565,000 1,559,429
5%, 7/1/2003 1,410,000 1,397,550
New Jersey Health Care Facilities Financing Authority, Revenue
(Saint Peter's Medical Center) 6%, 7/1/2001
(Insured; MBIA) (Prerefunded 7/1/2001) 1,500,000 (a) 1,547,235
NEW MEXICO--2.7%
Albuquerque, Gross Receipts Tax Subordinate Lien
(Affordable Housing Project) 5.375%, 7/1/2001 6,125,000 6,129,165
Santa Fe County, Project Revenue
(El Castillo Retirement) 5.25%, 5/15/2003 2,000,000 1,980,720
NEW YORK--25.9%
New York City:
4.85%, 2/15/2000 1,340,000 1,345,333
5%, 10/15/2001 4,300,000 4,373,143
5%, 10/15/2001 3,200,000 3,244,224
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ---------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York City (continued)
5.10%, 2/15/2001 1,185,000 1,197,703
5.10%, 2/15/2001 815,000 826,182
5.50%, 8/1/2001 9,000,000 9,190,530
New York State Dormitory Authority, Revenue:
(City University System) 5.10%, 7/1/2001 1,285,000 1,301,988
Lease, Refunding (State University Dormitory Facilities)
4.875%, 7/1/2000 8,665,000 8,735,880
(Mental Health Services Facilities):
5%, 2/15/2001 6,985,000 7,056,247
5%, 8/15/2001 5,785,000 5,864,717
5%, Series A, 2/15/2002 1,590,000 1,612,467
5%, Series B, 2/15/2002 7,095,000 7,195,252
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 1,641,266
5%, 4/1/2002 1,795,000 1,818,353
New York State Housing Finance Agency, Revenue
(Health Facilities-New York City):
4.85%, 11/1/1999 1,360,000 1,361,251
5.15%, 5/1/2000 1,140,000 1,148,835
5.15%, 11/1/2000 1,430,000 1,448,862
5.875%, 5/1/2004 6,500,000 6,807,385
New York State Mortgage Agency, Revenue
(Homeowner Mortgage) 5.15%, 9/1/2004 5,000,000 (c) 5,000,000
New York State Urban Development Corp., Revenue
(Onondaga County Convention Project) 4.875%, 1/1/2000 1,000,000 1,002,790
Yonkers Industrial Development Agency, Civic Facility Revenue
(Saint Joseph Hospital Yonkers):
5.65%, Series A, 3/1/2003 2,500,000 2,493,150
5.65%, Series B, 3/1/2003 700,000 698,082
5.65%, Series C, 3/1/2003 1,200,000 1,196,712
NORTH CAROLINA--3.1%
North Carolina Eastern Municipal Power Agency,
Power System Revenue:
5.20%, 1/1/2001 5,000,000 5,010,400
5%, 1/1/2002 4,000,000 3,979,520
NORTH DAKOTA--.7%
North Dakota Housing Finance Agency, Revenue
(Housing Finance Program--Home Mortgage Finance)
4.60%, 1/1/2003 2,095,000 2,070,384
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ---------------------------------------------------------------------------------------------------------------------------------
OHIO--1.2%
Belmont County, Health System Revenue
(East Ohio Regional Hospital):
4.30%, 1/1/2001 (Insured; ACA) 800,000 798,744
4.40%, 1/1/2002 (Insured; ACA) 900,000 896,760
Hamilton County, Local District Cooling Facilities Revenue
(Trigen Cinergy) 4.90%, 6/1/2004 2,000,000 1,963,500
OKLAHOMA--.4%
Holdenville Industrial Authority, Correctional Facility Revenue
5.70%, 7/1/2001 1,175,000 1,201,708
PENNSYLVANIA--7.2%
Beaver County Industrial Development Authority, PCR
(Ohio Edison Co. Project) 4.65%, 6/1/2004 5,000,000 4,871,800
Dauphin County General Authority, Revenue
(Office and Package--Riverfront Office) 5.125%, 1/1/2003 2,485,000 2,458,087
Delaware County Industrial Development Authority, Revenue
(Resource Recovery Facility) 5.30%, 1/1/2001 7,685,000 7,691,225
Lehigh County General Purpose Authority, Revenue
(Wiley House) 8.75%, 11/1/2014 (Prerefunded 11/1/1999) 2,000,000 (a) 2,048,320
Philadelphia Hospitals and Higher Education Facilities Authority, HR
(Pennsylvania Hospital) 5.50%, 7/1/2000 4,165,000 4,215,396
RHODE ISLAND--1.7%
Rhode Island Housing and Mortgage Finance Corp.,
Multi-Family Housing 5%, 7/1/2000 (Insured; AMBAC) 5,000,000 5,012,250
SOUTH CAROLINA--1.6%
Charleston County Health Facilities, First Mortgage Revenue
(Episcopal Project) 5.30%, 10/1/2002 4,750,000 4,793,937
TEXAS--6.3%
Brazos River Authority, PCR
(Utilities Electric Co.)
3.70%, 4/1/2000 8,000,000 7,987,760
Northeast Hospital Authority, Revenue
(Northeast Medical Center Hospital):
5.10%, 5/15/2000 1,230,000 1,238,032
5.25%, 5/15/2001 1,300,000 1,314,742
5.35%, 5/15/2002 2,725,000 2,769,799
Texas Public Property Finance Corp., Revenue
(Mental Health & Retardation Center)
8.20%, 10/1/2012 (Prerefunded 10/1/2002) 3,000,000 (a) 3,366,000
Tyler Health Facilities Development Corporation
(Mother Frances Hospital):
5.25%, 7/1/2001 700,000 702,219
5.25%, 7/1/2002 1,200,000 1,202,700
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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VIRGINIA--2.4%
Bedford County Industrial Development Authority, Revenue
(Georgia Pacific Corp. Project) 4.60%, 8/1/2004 2,760,000 2,726,908
Harrisonburg Redevelopment & Housing Authority,
Lease Purchase Revenue 4.20%, 3/1/2004 300,000 293,037
Hopewell Industrial Development Authority,
Health Care Facility Revenue:
(Colonial Heights) 5%, 10/01/1999 145,000 145,000
(Westport Convalescent Center) 5.15%, 10/1/2000 205,000 205,260
Rockingham County Industrial Development Authority,
Residential Care Facility, Revenue
(First Mortgage--Mennonite) 5.10%, 4/1/2003 3,800,000 3,783,280
U.S. RELATED--2.5%
Guam Airport Authority, Revenue 5.80%, 10/1/1999 1,705,000 1,705,085
Virgin Islands Public Finance Authority, Revenue
5%, 10/1/2003 5,580,000 5,600,032
TOTAL INVESTMENTS
(cost $295,145,768) 100.1% 295,725,725
LIABILITIES, LESS CASH AND RECEIVABLES ( .1%) (261,475)
NET ASSETS 100.0% 295,464,250
SEE NOTES TO FINANCIAL STATEMENT.
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Summary of Abbreviations
ACA American Capital Access LOR Limited Obligation Revenue
AMBAC American Municipal Bond MBIA Municipal Bond Investors
Assurance Corporation Assurance Insurance
COP Certificate of Participation Corporation
GO General Obligation MFHR Multi-Family Housing
HR Hospital Revenue Revenue
LOC Letter of Credit PCR Pollution Control Revenue
RRR Resources Recovery Revenue
SWDR Solid Waste Disposal Revenue
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 15.6
AA Aa AA 5.1
A A A 26.6
BBB Baa BBB 32.2
BB Ba BB 2.6
F1 MIG1/P1 SP1/A1 5.0
Not Rated (d) Not Rated (d) Not Rated (d) 12.9
100.0
(a) 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.
(b) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES
ACT OF 1933. THIS SECURITY MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT SEPTEMBER
30, 1999, THIS SECURITY AMOUNTED TO $2,599,325 OR .9% OF NET ASSETS.
(c) PURCHSED ON A DELAYED DELIVERY BASIS.
(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, 1999, THE FUND HAD $101,710,134 (34.4% OF NET ASSETS)
INVESTED IN SECURITIES WHOSE PAYMENT OF PRINCIPAL AND INTEREST IS
DEPENDENT UPON REVENUES GENERATED FROM HEALTH CARE PROJECTS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1999 (Unaudited)
<TABLE>
Cost Value
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<S> <C> <C>
ASSETS ($):
Investments in securities--See Statement of Investments 295,145,768 295,725,725
Cash 590,894
Receivable for investment securities sold 98,600
Receivable for shares of Beneficial Interest subscribed 7,500
Interest receivable 4,297,271
Prepaid expenses 27,229
300,747,219
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 142,334
Due to Distributor 18,095
Payable for investment securities purchased 5,023,604
Payable for shares of Beneficial Interest redeemed 12,055
Accrued expenses 86,881
5,282,969
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NET ASSETS ($) 295,464,250
- ------------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 300,893,240
Accumulated net realized gain (loss) on investments (6,008,947)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 579,957
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NET ASSETS ($) 295,464,250
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized) 22,862,932
NET ASSET VALUE, offering and redemption price per share--Note 3(d)($)
12.92
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
</TABLE>
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 7,256,015
EXPENSES:
Management fee--Note 3(a) 753,165
Shareholder servicing costs--Note 3(b) 220,639
Registration fees 34,025
Professional fees 30,439
Trustees' fees and expenses--Note 3(c) 28,340
Custodian fees 17,739
Prospectus and shareholders' reports--Note 3(b) 11,802
Loan commitment fees--Note 2 635
Miscellaneous 13,317
TOTAL EXPENSES 1,110,101
INVESTMENT INCOME--NET 6,145,914
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (46,238)
Net unrealized appreciation (depreciation) on investments (3,561,368)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (3,607,606)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,538,308
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1999 Year Ended
(Unaudited) March 31, 1999
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 6,145,914 12,277,641
Net realized gain (loss) on investments (46,238) 460,204
Net unrealized appreciation (depreciation)
on investments (3,561,368) (618,264)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,538,308 12,119,581
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (6,145,914) (12,277,641)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 38,835,326 85,065,492
Dividends reinvested 5,333,947 10,578,644
Cost of shares redeemed (48,888,290) (86,126,925)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS (4,719,017) 9,517,211
TOTAL INCREASE (DECREASE) IN NET ASSETS (8,326,623) 9,359,151
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 303,790,873 294,431,722
END OF PERIOD 295,464,250 303,790,873
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 2,986,835 6,495,980
Shares issued for dividends reinvested 410,764 807,710
Shares redeemed (3,763,961) (6,580,022)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (366,362) 723,668
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Six Months Ended
September 30, 1999 Year Ended March 31,
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(Unaudited) 1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.08 13.08 12.91 12.97 12.82 13.02
Investment Operations:
Investment income--net .27 .54 .55 .56 .58 .57
Net realized and unrealized
gain (loss) on investments (.16) -- .17 (.06) .15 (.20)
Total from Investment Operations .11 .54 .72 .50 .73 .37
Distributions:
Dividends from investment
income--net (.27) (.54) (.55) (.56) (.58) (.57)
Net asset value, end of period 12.92 13.08 13.08 12.91 12.97 12.82
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TOTAL RETURN (%) 1.62(a) 4.23 5.64 3.96 5.78 2.93
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .73(a) .73 .76 .80 .68 .70
Ratio of net investment income
to average net assets 4.07(a) 4.15 4.19 4.33 4.49 4.42
Decrease reflected in above
expense ratios due to
undertakings by the Manager -- -- -- .02 .05 .00
Portfolio Turnover Rate 19.72(b) 20.68 31.12 47.84 44.39 37.38
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Net Assets, end of period
($ x 1,000) 295,464 303,791 294,432 325,013 338,061 380,784
(a) ANNUALIZED.
(b) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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 charge.
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
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 had an unused capital loss carryover of approximately $5,964,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1999. If not
applied, $3,090,000 of the carryover expires in fiscal 2003 and $2,874,000
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 ("the 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. Interest is charged to
the fund at rates based on prevailing market rates in effect at the time of
borrowings. During the period ended September 30, 1999, the fund did not borrow
under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .50 of 1% of the value of the
fund's average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses, exclusive of taxes,
brokerage, interest on borrowings, commitment fees and extraordinary expenses,
exceed 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, 1999, 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, 1999, the fund was charged $154,105 pursuant to the Plan.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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, 1999, the fund was charged $35,413 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 shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund's Exchange privilege.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 1999, amounted to
$59,282,658 and $74,214,365, respectively.
At September 30, 1999, accumulated net unrealized appreciation on investments
was $579,957, consisting of $1,402,529 gross unrealized appreciation and
$822,572 gross unrealized depreciation.
At September 30, 1999, 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).
For More Information
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
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds 144
Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information
can be viewed online or
downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 591SA999
