Dreyfus
Short-Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1999
<PAGE>
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.
<PAGE>
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, 1999. Your fund
produced a total return, including share price changes and dividend income
generated, of 4.23%,* and a tax-free distribution rate per share of 4.15%.**
Economic Review
The economy in the period ended March 31, 1999 had several persistent themes.
These included weakness in the world economy, strength in the U.S. economy,
pervasive disinflation and multiple rounds of central bank easing, which lowered
interest rates in many parts of the world.
Weakness in the world economy started in Asia with economic and financial
stresses throughout most of the continent. While China was able to generate
economic expansion by government spending, economic declines occurred in most of
the rest of Asia. The most severe phase of these crises occurred when Asian
currencies dropped and short-term interest rates rose there as well. Then Latin
America began to weaken, particularly Brazil. Tentative signs of a bottoming in
Asia had emerged by the end of your fund's fiscal period; however, Brazil had
not yet turned the corner.
Europe was full of optimism about the benefits of currency unification into
the Euro as of year-end 1998. The reality was that economic growth in Europe
began the last year at a modest pace and showed signs of stagnation in early
1999. Even so, the new European central bank postponed the reduction in interest
rates at the beginning of 1999, probably because of a desire to build
anti-inflationary credibility. The bank finally eased in April of this year.
The U.S. economy proved to be a superperformer during the period, growing at
an above-trend rate despite the economic weakness overseas. A major reason for
this was that the negative effects of foreign economic weakness on the
traditional industrial sector were offset by positive effects elsewhere in the
economy. Low inflation and low interest rates stimulated the housing and
consumer sectors, while the technology sector continued to expand.
The Federal Reserve eased monetary policy three times beginning on September
30, 1998, lowering the Federal funds rate from 5.50% to 4.75%. This was not
because of any shortfall in U.S. economic growth. Rather, it was a response to a
financial crisis linked to the Russian default and the financial problems of a
major hedge fund. Despite widespread fears, the U.S. economy never did slow.
Long-term interest rates declined into early October, when fears of financial
crisis, deflation and possible economic recession were at their greatest.
However, those rates then drifted higher as the financial stresses eased and the
feared economic slowdown did not materialize.
Market Environment
Moderating economic growth in the U.S., a negligible rate of inflation and
relatively low interest rates continue to foster a positive atmosphere for
municipal bonds. As measured by commonly accepted indexes, municipal bond yields
have moved very little over the last six-month period, compared to yields of
U.S. Treasury bonds. Treasuries, of course, were affected uniquely because of
the safe haven they provided during the economic and currency collapses of
several foreign countries; lately there has been some liquidation of Treasuries
as recovery in several foreign nations began, thus their price movements have
been more volatile.
Municipal yields continue to be historically generous vis-a-vis Treasury bond
yields, and that lends support to current price levels. Presently, municipal
bonds with maturities of 20 years and longer provide federally tax-free yields
that exceed 90% of the taxable yields provided by Treasury bonds with comparable
maturities. Also helping to firm up price levels of municipal bonds is a
shortage of supply in the new-issue market. So far in 1999, newly marketed
issues amount to just 77% of 1998's volume. Some reduction in 1999 is expected
when compared to 1998, when a number of refundings helped to swell that year's
total issuance to $284 billion, but at this time new issues are running somewhat
behind expectations for 1999.
<PAGE>
Demand continues to be sparked by the after-tax benefits of municipal bond
ownership, recognized mainly by individuals and crossover buyers, the latter
being buyers who commonly operate in both taxable and tax-exempt markets,
depending on yield ratios and after-tax benefits. Institutional demand is not
especially strong right now, and that demand is very specific, centering on
coupon, maturity and several technical features. With supply and demand well
balanced, and no discernible indications of rising inflation and higher interest
rates, it appears that the municipal environment will continue to be hospitable.
Portfolio Focus
Portfolio decisions in the fund have remained consistent with those of the
past. We held many existing positions that were more attractive to us than those
available in the market. Holding existing positions shortened the time remaining
to maturity on those securities and thereby created an opportunity to add issues
with slightly longer maturities that can bolster the portfolio's income
performance.
In a separate trading strategy closer in on the yield curve, we sold
securities which had an early-2000 weighted average maturity, and replaced them
with securities having maturities in mid- to late 2001, which increased our
yield 100 basis points on those transactions: those transactions increased the
fund's overall yield by six basis points. Additionally, the portfolio continued
to benefit from its exposure to New York City and New York State credits.
Recently, an increased allocation to industrial development debt also improved
performance.
Included in this report is a series of detailed statements about your fund's
holdings and its financial condition. We hope they are informative. Please know
that we appreciate greatly your continued participation in the fund and The
Dreyfus Corporation.
Very truly yours,
/s/ Richard J. Moynihan
Richard J. Moynihan
Director, Municipal Portfolio
Management
The Dreyfus Corporation
April 19, 1999 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. Some income may be subject to the Federal
Alternative Minimum Tax (AMT) for certain shareholders.
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund March 31, 1999
- -------------------------------------------------------------------------------
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
Dollars
$22,179
Lehman Brothers 10-Year
Municipal Bond Index*
$17,153
Dreyfus Short-Intermediate
Municipal Bond Fund
*Source: Lehman Brothers
Average Annual Total Returns
- -------------------------------------------------------------------------------
One Year Ended Five Years Ended Ten Years Ended
March 31, 1999 March 31, 1999 March 31, 1999
---------------- ---------------- ----------------
4.23% 4.50% 5.54%
- ----------------
Presented above is a comparison of the Fund's 10-year historical performance
with that of the Lehman Brothers 10-Year Municipal Bond Index, a broad-based,
publicly available market Index. 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. The Lehman Brothers 10-Year Municipal Bond Index, unlike the Fund,
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 3/31/89 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.
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments March 31, 1999
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments--103.5% Amount Value
- ------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
Alaska--4.4%
Alaska Student Loan Corp., Student Loan Revenue:
5.25%, 7/1/1999 (Insured; AMBAC)............................................ $ 3,100,000 $ 3,114,415
5.25%, 7/1/2001 (Insured; AMBAC)............................................ 1,000,000 1,031,140
North Slope Borough:
Zero Coupon, 6/30/1999 (Insured; MBIA)...................................... 1,000,000 992,100
Zero Coupon, 6/30/1999 (Insured; MBIA)...................................... 4,000,000 3,968,400
Zero Coupon, 6/30/2000 (Insured; MBIA)...................................... 2,500,000 2,395,400
Zero Coupon, 6/30/2001 (Insured; MBIA)...................................... 2,000,000 1,838,600
California--2.9%
Sacramento County Housing Authority, MFHR:
(Oars Apartments) 4.80%, 12/15/2000 (LOC; Dai Ichi Kangyo Bank)............. 5,850,000 5,882,877
(Rancho Natamos Apartment) 4.80%, 12/15/2000 (LOC; Dai Ichi Kangyo Bank).... 3,000,000 3,006,420
Colorado--.9%
Denver City and County Airport, Revenue, Refunding:
5.05%, 11/15/2000........................................................... 1,495,000 1,520,056
5.10%, 11/15/2001........................................................... 1,160,000 1,186,193
Connecticut--4.8%
Connecticut Development Authority:
First Mortgage Gross Revenue, Refunding
(Health Care Project-Elim Park Baptist) 4.70%, 12/01/2001................ 1,765,000 1,771,919
Health Care Revenue
(Jerome Home Project) 8%, 11/01/2019 (Prerefunded 11/1/1999) (a)......... 1,845,000 1,931,715
Connecticut Resources Recovery Authority, RRR
(American Fuel Company) 3.80%, 11/15/1999................................... 6,750,000 6,749,460
Greenwich Housing Authority, MFHR (Greenwich Close):
4.90%, 9/1/1999............................................................. 205,000 205,238
5.15%, 9/1/2000............................................................. 220,000 220,884
5.35%, 9/1/2001............................................................. 230,000 231,488
5.55%, 9/1/2002............................................................. 245,000 247,183
5.95%, 9/1/2006............................................................. 310,000 315,930
6.05%, 9/1/2007............................................................. 330,000 336,953
Mashantucket Western Pequot Tribe, Special Revenue
6.25%, 9/1/2001 (b)......................................................... 2,500,000 2,657,775
District of Columbia--.3%
District of Columbia Redevelopment Land Agency, Special Tax Revenue
(Washington D.C. Sports Arena) 5.40%, 11/1/2000............................. 750,000 768,840
Florida--5.9%
Escambia County Health Facilities Authority, Health Facilities Revenue, Refunding
(Azalea Trace Inc.):
4.75%, 1/1/2000.......................................................... 790,000 794,922
5%, 1/1/2001............................................................. 830,000 843,703
5.10%, 1/1/2002.......................................................... 870,000 889,532
</TABLE>
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
Florida (continued)
Florida Housing Finance Agency, Multi-Family Housing:
5.35%, Series E, 6/1/2000................................................... $ 5,085,000 $ 5,095,323
5.35%, Series F, 6/1/2000................................................... 2,000,000 2,004,060
5.35%, Series G, 6/1/2000................................................... 3,650,000 3,657,410
(The Crossings Project) 4.85%, 2/1/2001..................................... 4,500,000 4,524,075
Illinois--3.3%
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers):
Refunding:
5.60%, 7/1/2001....................................................... 1,530,000 1,573,100
5.60%, 7/1/2002....................................................... 1,415,000 1,466,916
8.50%, 9/1/2010 (Prerefunded 9/1/2000) (a)............................... 2,985,000 3,243,740
Illinois Health Facilities Authority, Revenue:
(Victory Health Services) Refunding 5%, 8/15/2002........................... 1,590,000 1,633,312
(Beverly Farm Foundation) 9.125%, 12/15/2015 (Prerefunded 12/15/2000) (a)... 2,000,000 2,241,560
Iowa--.5%
Des Moines, HR, Refunding (Des Moines General Hospital)
5.05%, 11/15/2000........................................................... 1,545,000 1,582,636
Maryland--3.2%
Frederick County Retirement Community, Revenue (Extras-Buckinghams Choice):
5.25%, 1/1/2002............................................................. 1,500,000 1,503,150
5.375%, 1/1/2003............................................................ 4,900,000 4,914,749
Maryland State Energy Financing Adminitration, SWDR
(Wheelabrator Water Projects):
5.10%, 12/1/1999......................................................... 1,000,000 1,012,020
5.30%, 12/1/2000......................................................... 1,250,000 1,285,050
5.45%, 12/1/2001......................................................... 1,000,000 1,040,000
Massachusetts--3.6%
Massachusetts Health & Educational Facilities Authority, Revenue, Refunding
(Caritas Christi Obligation Group) 5.25%, 7/1/2003.......................... 5,730,000 5,872,333
Massachusetts Industrial Finance Agency, Refunding:
RRR (Odgen) 4.70%, 12/1/2003................................................ 3,000,000 3,023,580
Revenue (Chestnut Knoll) 5%, 2/1/2003....................................... 2,000,000 2,001,980
Michigan--5.1%
Flint Hospital Building Authority, Revenue, Refunding (Hurley Medical Center):
5.50%, 7/1/1999............................................................. 2,160,000 2,168,791
5.50%, 7/1/2000............................................................. 1,225,000 1,244,196
Greater Detroit, Resource Recovery Authority, Revenue, Refunding
5%, 12/13/2000 (Insured; AMBAC)............................................. 2,500,000 2,567,825
</TABLE>
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
Michigan (continued)
Michigan Hospital Finance Authority, HR, Refunding
(Genesys Regional Medical):
5.25%, 10/1/2001......................................................... $ 2,000,000 $ 2,050,780
5.25%, 10/1/2002......................................................... 1,000,000 1,029,780
5.25%, 10/1/2003......................................................... 2,445,000 2,520,355
Michigan Housing Development Authority, Rental Housing Revenue:
5%, 10/1/1999 (Insured; MBIA)............................................... 1,915,000 1,926,222
5.15%, 4/1/2000 (Insured; MBIA)............................................. 1,975,000 1,997,002
Mississippi--.8%
Jackson Housing Authority, MFHR
(Arbor Park Apartment Project) 5.05%, 12/1/2001.............................. 2,500,000 2,533,875
New Jersey--4.4%
Bayonne Municipal Utilities Authority, Sewer Project Note
4.60%, 5/7/1999.............................................................. 3,400,000 3,402,618
Monroe Township Municipal Utilities Authority, Water and
Sewer System Revenue, Refunding
6.875%, 2/1/2017 (Insured; MBIA)............................................. 5,000,000 5,241,400
New Jersey Economic Development Authority, First Mortgage Revenue
(Cadbury Corp. Project):
4.80%, 7/1/2001.......................................................... 1,565,000 1,575,501
5%, 7/1/2003............................................................. 1,410,000 1,426,568
New Jersey Health Care Facilities Financing Authority, Revenue
(Saint Peter's Medical Center) 6%, 7/1/2001 (Insured; MBIA)
(Prerefunded 7/1/2001) (a)................................................... 1,500,000 1,578,210
New Mexico--2.7%
Albuquerque, Gross Receipts Tax Subordinate Lien (Affordable Housing Project)
5.375%, 7/1/2001............................................................. 6,125,000 6,145,213
Santa Fe County, Project Revenue
(El Castillo Retirement) 5.25%, 5/15/2003.................................... 2,000,000 2,002,240
New York--30.7%
Long Island Power Authority, Electric System General Revenue
4.25%, 4/1/2003.............................................................. 3,000,000 3,022,500
New York City:
4.85%, 2/15/2000............................................................ 1,340,000 1,358,760
Refunding 4.85%, 2/15/2000.................................................. 1,070,000 1,086,189
5%, 2/15/2000............................................................... 8,675,000 8,807,554
Refunding 5%, 2/15/2000..................................................... 8,325,000 8,461,197
5%, 10/15/2001.............................................................. 4,300,000 4,449,296
5%, 10/15/2001.............................................................. 3,200,000 3,301,376
7.50%, 2/1/2001............................................................. 5,000,000 5,333,900
5.10%, 2/15/2001............................................................ 1,185,000 1,215,774
Refunding 5.10%, 2/15/2001.................................................. 815,000 838,252
Refunding 5.50%, 8/1/2001................................................... 9,000,000 9,363,150
</TABLE>
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
New York (continued)
New York State Dormitory Authority, Revenue:
Lease, Refunding (State University Dormitory Facilities) 4.875%, 7/1/2000... $ 8,665,000 $ 8,830,848
(Mental Health Services Facilities):
Refunding 5%, 2/15/2001.................................................. 6,985,000 7,148,798
Refunding 5%, 8/15/2001.................................................. 5,785,000 5,951,782
5%, 2/15/2002............................................................ 1,590,000 1,636,587
Refunding 5%, 2/15/2002.................................................. 7,095,000 7,302,884
Refunding (City University System) 5.10%, 7/1/2001.......................... 1,285,000 1,322,445
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 1,663,318
5%, 4/1/2002............................................................. 1,795,000 1,846,552
New York State Housing Finance Agency, Revenue, Refunding
(Health Facilities-New York City):
4.85%, 5/1/1999.......................................................... 1,080,000 1,081,458
4.85%, 11/1/1999......................................................... 1,360,000 1,372,838
5.15%, 5/1/2000.......................................................... 1,140,000 1,162,093
5.15%, 11/1/2000......................................................... 1,430,000 1,467,795
New York State Urban Development Corp., Revenue, Refunding
(Onondaga County Convention Project) 4.875%, 1/1/2000....................... 1,000,000 1,011,860
Yonkers Industrial Development Agency, Civic Facility Revenue
(Saint Joseph Hospital Yonkers):
5.65%, Series A, 3/1/2003................................................ 2,500,000 2,540,650
5.65%, Series B, 3/1/2003................................................ 700,000 711,382
5.65%, Series C, 3/1/2003................................................ 1,200,000 1,219,512
North Carolina--3.0%
North Carolina Eastern Municipal Power Agency, Power System Revenue, Refunding:
5.20%, 1/1/2001............................................................. 5,000,000 5,094,200
5%, 1/1/2002................................................................ 4,000,000 4,074,760
North Dakota--.7%
North Dakota Housing Finance Agency, Revenue
(Housing Finance Program-Home Mortgage Finance) 4.60%, 1/1/2003............. 2,150,000 2,156,751
Ohio--1.8%
Belmont County, Health System Revenue (East Ohio Regional Hospital):
4.30%, 1/1/2001 (Insured; ACA).............................................. 800,000 807,144
4.40%, 1/1/2002 (Insured; ACA).............................................. 900,000 907,956
Montgomery County, HR (Grandview Hospital and Medical Center):
5.25%, 12/1/2001............................................................ 1,900,000 1,869,771
5.25%, 12/1/2002............................................................ 2,070,000 2,020,858
Oklahoma--.4%
Holdenville Industrial Authority, Correctional Facility Revenue
5.70%, 7/1/2001............................................................. 1,175,000 1,229,485
</TABLE>
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
Pennsylvania--5.5%
Dauphin County General Authority, Revenue
(Office and Package-Riverfront Office) 5.125%, 1/1/2003..................... $ 2,485,000 $ 2,507,141
Delaware County Industrial Development Authority, Revenue, Refunding
(Resource Recovery Facility) 5.30%, 1/1/2001................................ 7,685,000 7,769,996
Lehigh County General Purpose Authority, Revenue
(Wiley House) 8.75%, 11/1/2014 (Prerefunded; 11/1/1999) (a)................. 2,000,000 2,103,700
Philadelphia Hospitals and Higher Education Facilities Authority, HR
(Pennsylvania Hospital) 5.50%, 7/1/2000..................................... 4,165,000 4,269,125
Rhode Island--1.7%
Rhode Island Housing and Mortgage Finance Corp., Multi-Family Housing, Refunding
5%, 7/1/2000 (Insured; AMBAC)............................................... 5,000,000 5,058,550
South Carolina--1.0%
Charleston County Health Facilities, First Mortgage Revenue
(Episcopal Project) 5.30%, 10/1/2002........................................ 3,000,000 3,024,420
South Dakota--2.0%
South Dakota Student Loan Finance Corp., Student Loan Revenue 5.70%, 8/1/1999.. 6,000,000 6,047,580
Texas--6.4%
Brazos River Authority, PCR, Refunding
(Utilities Electric Co.):
4.15%, 6/18/1999......................................................... 4,000,000 4,000,880
3.70%, 4/1/2000 (c)...................................................... 8,000,000 8,000,000
Northeast Hospital Authority, Revenue, Refunding
(Northeast Medical Center Hospital):
5.10%, 5/15/2000......................................................... 1,230,000 1,250,357
5.25%, 5/15/2001......................................................... 1,300,000 1,335,490
5.35%, 5/15/2002......................................................... 2,725,000 2,824,953
Tyler Health Facilities Development Corporation, Refunding (Mother Frances Hospital):
5.25%, 7/1/2001............................................................. 700,000 715,274
5.25%, 7/1/2002............................................................. 1,200,000 1,233,276
Virginia--3.2%
Harrisonburg Redevelopment & Housing Authority, Lease Purchase Revenue
4.20%, 3/1/2004............................................................. 5,500,000 5,497,415
Hopewell Industrial Development Authority,
Health Care Facility Revenue, Refunding:
(Colonial Heights) 5%, 10/01/1999........................................ 145,000 145,663
(Westport Convalescent Center) 5.15%, 10/1/2000.......................... 205,000 207,333
Rockingham County Industrial Development Authority,
Residential Care Facility, Revenue (First Mortgage-Mennonite) 5.10%, 4/1/2003 3,800,000 3,804,750
</TABLE>
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) March 31, 1999
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
U.S. Related--4.3%
Guam Airport Authority, Revenue 5.80%, 10/1/1999............................... $ 1,705,000 $ 1,726,176
Virgin Islands Port Authority Airport, Revenue, Refunding:
4.20%, 9/1/2002............................................................. 2,720,000 2,722,747
4.35%, 9/1/2003............................................................. 2,830,000 2,837,131
Virgin Islands Public Finance Authority, Revenue, Refunding
5%, 10/1/2003............................................................... 5,580,000 5,731,384
------------
TOTAL INVESTMENTS
(cost $310,328,404)......................................................... 103.5% $314,469,729
====== ============
LIABILITIES, LESS CASH AND RECEIVABLES......................................... (3.5%) $(10,678,856)
====== ============
NET ASSETS..................................................................... 100.0% $303,790,873
====== ============
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ACA American Capital Access 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 17.2%
AA Aa AA 8.1
A A A 32.2
BBB Baa BBB 26.1
F1 MIG1/P1 SP1/A1 3.7
Not Rated (d) Not Rated (d) Not Rated (d) 12.7
------
100.0%
======
</TABLE>
Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(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 March 31, 1999, this security
amounted to $2,657,775 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 March 31, 1999, the Fund had $96,636,774 (31.8% 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.
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 1999
<TABLE>
<CAPTION>
Cost Value
------------- -------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments........ $310,328,404 $314,469,729
Interest receivable............................................ 4,110,069
Receivable for shares of Beneficial Interest subscribed........ 12,600
Prepaid expenses............................................... 48,473
-------------
318,640,871
-------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.................. 149,203
Due to Distributor............................................. 20,809
Cash overdraft due to Custodian................................ 6,539,325
Payable for investment securities purchased.................... 8,000,822
Payable for shares of Beneficial Interest redeemed............. 47,139
Accrued expenses............................................... 92,700
-------------
14,849,998
-------------
NET ASSETS..................................................................... $303,790,873
=============
REPRESENTED BY: Paid-in capital............................................... $305,612,257
Accumulated net realized gain (loss) on investments........... (5,962,709)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4...................................... 4,141,325
-------------
NET ASSETS..................................................................... $303,790,873
=============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized). 23,229,294
NET ASSET VALUE, offering and redemption price per share--Note 3(d).............. $13.08
======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Operations Year Ended March 31, 1999
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income................................ $14,447,619
EXPENSES: Management fee--Note 3(a)...................... $ 1,480,921
Shareholder servicing costs--Note 3(b)......... 445,162
Professional fees.............................. 58,668
Trustees' fees and expenses--Note 3(c)......... 58,283
Registration fees.............................. 52,888
Custodian fees................................. 30,213
Prospectus and shareholders' reports--Note 3(b) 23,758
Loan commitment fees--Note 2................... 1,723
Interest expense--Note 2....................... 766
Miscellaneous.................................. 17,596
-----------
Total Expenses............................... 2,169,978
-----------
INVESTMENT INCOME--NET....................................................... 12,277,641
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments........ $ 460,204
Net unrealized appreciation (depreciation)
on investments............................... (618,264)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS....................... (158,060)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS......................... $12,119,581
===========
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
March 31, 1999 March 31, 1998
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 12,277,641 $ 12,622,194
Net realized gain (loss) on investments............................... 460,204 99,128
Net unrealized appreciation (depreciation) on investments............. (618,264) 3,904,464
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations... 12,119,581 16,625,786
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................ (12,277,641) (12,622,194)
Net realized gain on investments...................................... -- (14,169)
------------ ------------
Total Dividends................................................... (12,277,641) (12,636,363)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold......................................... 85,065,492 72,622,100
Dividends reinvested.................................................. 10,578,644 10,786,887
Cost of shares redeemed............................................... (86,126,925) (117,979,739)
------------ ------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions 9,517,211 (34,570,752)
------------ ------------
Total Increase (Decrease) in Net Assets......................... 9,359,151 (30,581,329)
NET ASSETS:
Beginning of Period................................................... 294,431,722 325,013,051
------------ ------------
End of Period......................................................... $303,790,873 $294,431,722
============ ============
Shares Shares
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 6,495,980 5,571,759
Shares issued for dividends reinvested............................... 807,710 827,738
Shares redeemed...................................................... (6,580,022) (9,066,324)
------------ ------------
Net Increase (Decrease) in Shares Outstanding.................... 723,668 (2,666,827)
============ ============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Year Ended March 31,
------------------------------------------------------------
PER SHARE DATA: 1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $13.08 $12.91 $12.97 $12.82 $13.02
------ ------ ------ ------ ------
Investment Operations:
Investment income--net...................... .54 .55 .56 .58 .57
Net realized and unrealized gain (loss)
on investments............................ -- .17 (.06) .15 (.20)
------ ------ ------ ------ ------
Total from Investment Operations............ .54 .72 .50 .73 .37
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net........ (.54) (.55) (.56) (.58) (.57)
------ ------ ------ ------ ------
Net asset value, end of period ............. $13.08 $13.08 $12.91 $12.97 $12.82
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN........................ 4.23% 5.64% 3.96% 5.78% 2.93%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .73% .76% .80% .68% .70%
Ratio of net investment income
to average net assets..................... 4.15% 4.19% 4.33% 4.49% 4.42%
Decrease reflected in above expense ratios
due to undertakings by the Manager........ -- -- .02% .05% --
Portfolio Turnover Rate .................... 20.68% 31.12% 47.84% 44.39% 37.38%
Net Assets, end of period (000's Omitted) .. $303,791 $294,432 $325,013 $338,061 $380,784
</TABLE>
See notes to financial statements.
<PAGE>
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, 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 $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 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. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings.
<PAGE>
Dreyfus Short-Intermediate Municipal Bond Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
The average daily amount of borrowings outstanding during the period ended
March 31, 1999 was approximately $18,400 with a related weighted average
annualized interest rate of 4.17%.
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, 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 March 31, 1999, the Fund was charged $303,474 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, 1999, the Fund was charged $87,130 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 Exchange privilege.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1999 amounted
to $78,253,141 and $61,041,481, respectively.
At March 31, 1999, accumulated net unrealized appreciation on investments was
$4,141,325 consisting of $4,275,212 gross unrealized appreciation and $133,887
gross unrealized depreciation.
At March 31, 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).
<PAGE>
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, 1999, 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, 1999 by correspondence with the custodian and
brokers. 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, 1999, 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
New York, New York
May 3, 1999
<PAGE>
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,
1999 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 1999 calendar year on Form 1099-DIV
which will be mailed by January 31, 2000.
<PAGE>
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. 591AR993
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
LEHMAN BROTHERS
PERIOD 10-YEAR DREYFUS
MUNICIPAL SHORT-INTERMEDIATE
BOND INDEX * MUNICIPAL BOND FUND
3/31/89 10,000 10,000
3/31/90 10,998 10,732
3/31/91 12,064 11,500
3/31/92 13,187 12,363
3/31/93 14,932 13,357
3/31/94 15,352 13,764
3/31/95 16,507 14,166
3/31/96 17,971 14,985
3/31/97 18,908 15,578
3/31/98 20,871 16,458
3/31/99 22,179 17,153
* Source: Lehman Brothers
