Dreyfus
Short-Intermediate
Municipal Bond Fund
SEMIANNUAL REPORT
September 30, 2000
(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
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
---------------------------------------------------------------------------
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, 2000 through
September 30, 2000. 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.
Despite some modest fluctuations because of changing economic conditions,
municipal bond prices rose modestly over the past six months with a rally in the
municipal bond market. Most sectors of the municipal bond market have also
benefited from slowing economic growth as well. Additionally, the moderating
effects of the Federal Reserve Board's (the "Fed") interest-rate hikes during
the first half of 2000 helped the Fed to achieve its goal of slowing the U.S.
economy. Other factors such as higher energy prices and a weak euro also served
to slow economic growth.
In general, the overall investment environment that prevailed in the second half
of the 1990s had provided returns well above their long-term averages,
establishing unrealistic expectations for some investors. We believe that as the
risks of the stock market have become more apparent, the relative stability and
income potential of municipal bonds can make them an attractive investment as
part of a well-balanced portfolio.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620.
Thank you for investing in Dreyfus Short-Intermediate Municipal Bond Fund.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 16, 2000
DISCUSSION OF FUND PERFORMANCE
Samuel Weinstock, Portfolio Manager
How did Dreyfus Short-Intermediate Municipal Bond Fund perform during the
period?
The portfolio produced a 2.52% total return over the six-month period ended
September 30, 2000.(1) This compares with a total return of 2.46% for the Lipper
Short-Intermediate Municipal Debt Funds category average over the same
period.(2)
We attribute our performance to a relatively strong investment environment for
municipal bonds, especially in the intermediate-term maturity range. The market
rally was driven primarily by signs of an economic slowdown throughout the U.S.,
as well as positive supply-and-demand factors affecting municipal bonds.
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
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
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.
What other factors influenced the fund's performance?
The fund was positively influenced over the past six months by favorable
economic and market conditions. When the reporting period began on April 1,
2000, the U.S. economy was growing strongly, raising concerns that long-dormant
inflationary pressures might reemerge. In response, the Federal Reserve Board
(the "Fed") raised short-term interest rates once during the reporting period.
However, signs soon emerged that the Fed's previous rate hikes were having the
desired effect of slowing the economy. Fewer housing starts, moderating growth
and little change in the core inflation rate may suggest that the Fed's
restrictive monetary policies could be near an end.
The continuing strength of the U.S. economy generally helped keep municipal bond
yields relatively low compared to taxable bonds. Most states enjoyed higher tax
revenues, curtailing their need to borrow and resulting in a reduced supply of
securities compared to the same period in 1999. At the same time, demand for
municipal bonds has been strong from individuals seeking to protect their
wealth. When demand rises and supply falls, prices of existing bonds tend to
move higher.
In this environment, we allowed most of our existing holdings to mature because
prevailing yields were generally lower on the new securities in which we would
otherwise reinvest sales proceeds. By holding bonds until maturity rather than
selling them before they mature, we were able to maintain those higher yields
for as long as possible. However, on July 1, approximately $23 million of the
fund's bonds matured or were redeemed by their issuers. We attempted to reinvest
those assets in investment-grade bonds with comparable income characteristics.
We found such opportunities primarily in tax-exempt bonds from airlines,
utilities and power authorities with maturities in the three-year range.
What is the fund's current strategy?
In our view, the current investment environment does not provide adequate
incremental returns for investors willing to hold longer dated bonds within the
short-intermediate maturity range. From a security selection perspective,
however, we have been finding occasional opportunities for high yields from
issuers that are currently out of favor among investors. We have begun to
carefully examine some lower rated bonds from out-of-favor issuers -- such as
industrial development regions, power suppliers and health care providers --
that we believe to have sound credit characteristics. We also intend to focus on
risk management through broad diversification and by maintaining a relatively
short average maturity.
October 16, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE
AND LOCAL TAXES, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE
MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY
TAXABLE.
(2) SOURCE: LIPPER INC.
The Fund
STATEMENT OF INVESTMENTS
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.7% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ALASKA--1.1%
Alaska Student Loan Corp., Student Loan Revenue:
<S> <C> <C>
5.25%, 7/1/2001 (Insured; AMBAC) 1,000,000 1,004,660
North Slope Borough Zero Coupon, 6/30/2001
(Insured; MBIA) 2,000,000 1,931,900
CALIFORNIA--4.5%
Riverside County Public Financing Authority, COP:
5%, 5/15/2002 930,000 933,618
5%, 5/15/2003 980,000 983,175
5.125%, 5/15/2004 1,030,000 1,036,026
Sacramento County Housing Authority, MFHR:
(Oars Apartments) 4.80%, 12/15/2000
(LOC; Dai Ichi Kangyo Bank) 5,850,000 5,857,605
(Rancho Natamos Apartment) 4.80%, 12/15/2000
(LOC; Dai Ichi Kangyo Bank) 3,000,000 2,998,170
COLORADO--1.0%
Denver City and County Airport, Revenue:
5.05%, 11/15/2000 1,495,000 1,495,493
5.10%, 11/15/2001 1,160,000 1,165,011
CONNECTICUT--2.0%
Connecticut Development Authority
First Mortgage Gross Revenue
(Health Care Project--Elim Park Baptist)
4.70%, 12/01/2001 1,765,000 1,734,395
Greenwich Housing Authority, MFHR (Greenwich Close):
5.35%, 9/1/2001 230,000 229,011
5.55%, 9/1/2002 245,000 242,883
5.95%, 9/1/2006 310,000 303,642
6.05%, 9/1/2007 330,000 322,344
Mashantucket Western Pequot Tribe, Special Revenue
6.25%, 9/1/2001 2,500,000 (a) 2,543,625
DISTRICT OF COLUMBIA--4.1%
District of Columbia, GO 5.50%, 6/1/2002 9,930,000 10,050,054
District of Columbia Redevelopment Land Agency,
Special Tax Revenue
(Washington D.C. Sports Arena) 5.40%, 11/1/2000 750,000 750,390
FLORIDA--2.1%
Escambia County Health Facilities Authority, Health Facilities
Revenue (Azalea Trace Inc.):
5%, 1/1/2001 830,000 829,004
5.10%, 1/1/2002 870,000 864,006
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
Lee County Industrial Development Authority, Health Care
Facilities Revenue (Cypress Cove Healthpack):
5.625%, 10/1/2002 2,000,000 1,974,560
5.875%, 10/1/2004 2,000,000 1,954,460
ILLINOIS-2.5%
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers):
5.60%, 7/1/2001 1,530,000 1,532,020
5.60%, 7/1/2002 1,415,000 1,416,712
Illinois Health Facilities Authority, Revenue:
(Victory Health Services) 5%, 8/15/2002 1,590,000 1,580,508
(Beverly Farm Foundation) 9.125%, 12/15/2015
(Prerefunded 12/15/2000) 2,000,000 (b) 2,077,420
LOUISIANA--1.9%
Saint Charles Parish, PCR
(Entergy La Inc. Project) 4.85%, 6/1/2002 5,000,000 4,964,850
MARYLAND--3.3%
Frederick County Retirement Community, Revenue
(Extras-Buckinghams Choice):
5.25%, 1/1/2002 1,500,000 1,484,205
5.375%, 1/1/2003 4,900,000 4,861,192
Maryland State Energy Financing Adminitration, SWDR
(Wheelabrator Water Projects):
5.30%, 12/1/2000 1,250,000 1,251,088
5.45%, 12/1/2001 1,000,000 1,007,400
MASSACHUSETTS--2.9%
Massachusetts Health & Educational
Facilities Authority, Revenue
(Caritas Christi Obligation Group) 5.25%, 7/1/2003 5,730,000 5,592,881
Massachusetts Industrial Finance Agency, Revenue
(Chestnut Knoll) 5%, 2/1/2003 2,000,000 1,951,880
MICHIGAN--6.0%
Greater Detroit, Resource Recovery Authority, Revenue
5%, 12/13/2000 (Insured; AMBAC) 2,500,000 2,502,750
Michigan Hospital Finance Authority, HR:
(Ascension Health Credit) 5.05%, 11/15/2004 4,025,000 4,007,733
(Genesys Regional Medical):
5.25%, 10/1/2001 2,000,000 2,016,640
5.25%, 10/1/2002 1,000,000 1,014,130
5.25%, 10/1/2003 2,445,000 2,490,844
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (CONTINUED)
Michigan Strategic Fund, LOR
(Detroit Edison) 4.73%, 9/1/2001 3,750,000 3,747,188
MISSISSIPPI--1.0%
Jackson Housing Authority, MFHR
(Arbor Park Apartment Project) 5.05%, 12/1/2001 2,500,000 2,496,725
NEW JERSEY--2.9%
Monroe Township Municipal Utilities Authority,
Water and Sewer System Revenue
6.875%, 2/1/2017 (Insured; MBIA) 3,075,000 3,140,436
New Jersey Economic Development Authority
First Mortgage Revenue
(Cadbury Corp. Project):
4.80%, 7/1/2001 (Insured; ACA) 1,565,000 1,557,551
5%, 7/1/2003 (Insured; ACA) 1,410,000 1,397,747
New Jersey Health Care Facilities Financing Authority, Revenue
(Saint Peter's Medical Center) 6%, 7/1/2001
(Insured; MBIA) (Prerefunded 7/1/2001) 1,500,000 (b) 1,517,685
NEW MEXICO-.7%
Santa Fe County, Project Revenue
(El Castillo Retirement) 5.25%, 5/15/2003 2,000,000 1,955,080
NEW YORK--26.7%
New York City:
5%, 10/15/2001 4,300,000 4,329,541
5%, 10/15/2001 3,200,000 3,221,024
5.10%, 2/15/2001 1,185,000 1,188,389
5.10%, 2/15/2001 815,000 817,355
5.50%, 8/1/2001 9,000,000 9,085,140
6.375%, 8/1/2004 8,000,000 8,363,920
New York State Dormitory Authority, Revenue:
(City University System) 5.10%, 7/1/2001 1,285,000 1,291,386
(Mental Health Services Facilities):
5%, 2/15/2001 6,985,000 7,001,066
5%, Series A, 2/15/2002 1,590,000 1,600,208
5%, Series B, 2/15/2002 7,095,000 7,140,550
New York State Energy Research and Development Authority,
Service Contract Revenue
(Western New York Nuclear Service Center Project):
5%, 4/1/2001 1,625,000 1,629,859
5%, 4/1/2002 1,795,000 1,806,488
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Housing Finance Agency, Revenue
(Health Facilities-New York City):
5.15%, 11/1/2000 1,430,000 1,430,486
5.875%, 5/1/2004 6,500,000 6,702,670
New York State Mortgage Agency, Revenue
(Homeowner Mortgage) 5.15%, 9/1/2004 4,800,000 4,783,632
TSASC Inc., Tobacco Flexible Amortization Bonds:
5%, 7/15/2008 2,690,000 2,673,537
5%, 7/15/2009 1,000,000 991,860
5.125%, 7/15/2009 2,310,000 2,293,691
Yonkers Industrial Development Agency,
Civic Facility Revenue
(Saint Joseph Hospital Yonkers):
5.65%, Series A, 3/1/2003 1,900,000 1,876,953
5.65%, Series B, 3/1/2003 600,000 592,722
5.65%, Series C, 3/1/2003 900,000 889,083
NORTH CAROLINA--3.8%
North Carolina Eastern Municipal Power Agency,
Power System Revenue:
5.20%, 1/1/2001 5,000,000 5,004,000
5%, 1/1/2002 4,000,000 3,998,240
5.45%, 1/1/2004 1,000,000 1,007,910
NORTH DAKOTA--.7%
North Dakota Housing Finance Agency, Revenue
(Housing Finance Program--Home Mortgage Finance)
4.60%, 1/1/2003 1,835,000 1,814,466
OHIO--2.2%
Belmont County, Health System Revenue
(East Ohio Regional Hospital):
4.30%, 1/1/2001 (Insured; ACA) 800,000 799,008
4.40%, 1/1/2002 (Insured; ACA) 900,000 892,809
Hamilton County, Local District Cooling Facilities Revenue
(Trigen Cinergy) 4.90%, 6/1/2004 2,000,000 1,958,480
Ohio Water Development Authority, PCR
(Clevlend Electric) 5.35%, 10/1/2002 2,000,000 1,999,980
OKLAHOMA--.5%
Holdenville Industrial Authority, Correctional Facility Revenue
5.70%, 7/1/2001 1,175,000 1,184,611
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--6.1%
Dauphin County General Authority, Revenue
(Office and Package--Riverfront Office) 5.125%, 1/1/2003 1,920,000 1,904,352
Delaware County Industrial Development Authority, Revenue:
PCR (Peco Energy Company Project) 5.20%, 10/1/2004 3,000,000 2,990,370
(Resource Recovery Facility) 5.30%, 1/1/2001 7,685,000 7,678,852
Montgomery County Industrial Development Authority, PCR
(Peco Energy Company Project) 5.30%, 10/1/2004 3,380,000 3,373,950
SOUTH CAROLINA--1.7%
Charleston County Health Facilities, First Mortgage Revenue
(Episcopal Project) 5.30%, 10/1/2002 4,660,000 4,572,578
TEXAS--12.4%
Brazos River Authority, PCR:
(Texas Utilities Electric Co.) 5%, 4/1/2001 5,000,000 5,002,200
(Utilities Electric Co.) 5.50%, 6/19/2001 3,250,000 3,254,030
Dallas-Fort Worth International Airport Facility
Improvement Corp., Revenue (American Airlines, Inc.)
5.95%, 11/1/2003 5,000,000 5,012,800
Matagorda County Navigation District No. 1, PCR:
(Central Power & Light):
4.90%, 11/1/2001 1,000,000 995,770
4.95%, 11/1/2001 100,000 99,723
3.83%, 11/1/2001 2,500,000 (c) 2,478,850
3.832%, 11/1/2001 6,700,000 (c) 6,662,882
Northeast Hospital Authority, Revenue
(Northeast Medical Center Hospital):
5.25%, 5/15/2001 1,300,000 1,298,674
5.35%, 5/15/2002 2,725,000 2,718,242
Texas Public Property Finance Corp., Revenue
(Mental Health & Retardation Center) 8.20%, 10/1/2012
(Prerefunded 10/1/2002) 2,900,000 (b) 3,154,939
Tyler Health Facilities Development Corporation
(Mother Frances Hospital):
5.25%, 7/1/2001 700,000 698,467
5.25%, 7/1/2002 1,200,000 1,191,912
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA--3.4%
Bedford County Industrial Development Authority, Revenue
(Georgia Pacific Corp. Project) 4.60%, 8/1/2004 2,575,000 2,542,632
Hopewell Industrial Development Authority,
Health Care Facility Revenue
(Colonial Heights) 5.60%, 10/1/2003 205,000 202,179
(Westport Convalescent Center):
5.15%, 10/1/2000 205,000 204,996
5.90%, 10/1/2005 315,000 309,620
6.15%, 10/1/2007 175,000 171,874
6.25%, 10/1/2008 410,000 402,505
Rockingham County Industrial Development Authority,
Residential Care Facility, Revenue
(First Mortgage--Mennonite) 5.10%, 4/1/2003 3,800,000 3,743,114
Virginia Housing Development Authority,
Commonwealth Mortgage 6.10%, 7/1/2002 1,220,000 1,242,668
WASHINGTON--3.1%
Washington Public Power Supply System, Revenue:
(Nuclear Project Number 1) 5%, 7/1/2005 5,000,000 5,061,850
(Nuclear Project Number 2) 5%, 7/1/2003 3,000,000 3,029,340
U.S. RELATED--2.1%
Virgin Islands Public Finance Authority, Revenue
5%, 10/1/2003 5,580,000 5,580,725
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $259,242,577) 98.7% 258,717,855
CASH AND RECEIVABLES (NET) 1.3% 3,532,925
NET ASSETS 100.0% 262,250,780
The Fund
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Summary of Abbreviations
ACA American Capital Access
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
GO General Obligation
HR Hospital Revenue
LOC Letter of Credit
LOR Limited Obligation Revenue
MBIA Municipal Bond Investors
Assurance Insurance
Corporation
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SWDR Solid Waste Disposal Revenue
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 10.1
AA Aa AA 10.0
A A A 29.8
BBB Baa BBB 28.0
BB Ba BB 3.0
F1 MIG1/P1 SP1/A1 1.9
Not Rated (d) Not Rated (d) Not Rated (d) 17.2
100.0
(a) 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, 2000, THIS
SECURITIY AMOUNTED TO $2,543,625 OR 1.0% 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, 2000, THE FUND HAD $90,848,694 (34.6% OF NET ASSETS)
INVESTED IN SECURITIES WHOSE PAYMENT OF PRINCIPAL AND INTEREST IS DEPENDENT
UPON REVENUES GENERATED FROM HEALTH CARE PROJECTS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 259,242,577 258,717,855
Receivable for investment securities sold 4,903,531
Interest receivable 4,123,873
Prepaid expenses 19,897
267,765,156
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 143,857
Cash overdraft due to Custodian 2,210,596
Payable for investment securities purchased 3,021,802
Payable for shares of Beneficial Interest redeemed 4,498
Accrued expenses 133,623
5,514,376
--------------------------------------------------------------------------------
NET ASSETS ($) 262,250,780
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 269,080,592
Accumulated undistributed investment income--net 30,692
Accumulated net realized gain (loss) on investments (6,335,782)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (524,722)
--------------------------------------------------------------------------------
NET ASSETS ($) 262,250,780
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial
Interest authorized) 20,382,631
NET ASSET VALUE, offering and redemption price per share--
Note 3(d) ($) 12.87
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 6,482,050
EXPENSES:
Management fee--Note 3(a) 656,701
Shareholder servicing costs--Note 3(b) 185,249
Trustees' fees and expenses--Note 3(c) 32,978
Professional fees 15,318
Custodian fees 13,321
Registration fees 13,269
Prospectus and shareholders' reports-Note 3(b) 4,866
Loan commitment fees--Note 2 472
Miscellaneous 12,204
TOTAL EXPENSES 934,378
INVESTMENT INCOME--NET 5,547,672
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (139,016)
Net unrealized appreciation (depreciation) on investments 1,218,075
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,079,059
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 6,626,731
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 2000 Year Ended
(Unaudited) March 31, 2000
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 5,547,672 12,093,584
Net realized gain (loss) on investments (139,016) (204,991)
Net unrealized appreciation (depreciation)
on investments 1,218,075 (5,884,122)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 6,626,731 6,004,471
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (5,516,980) (12,093,584)
Net realized gain on investments -- (29,066)
TOTAL DIVIDENDS (5,516,980) (12,122,650)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 23,486,630 68,318,437
Dividends reinvested 4,757,253 10,505,175
Cost of shares redeemed (37,283,959) (106,315,201)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (9,040,076) (27,491,589)
TOTAL INCREASE (DECREASE) IN NET ASSETS (7,930,325) (33,609,768)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 270,181,105 303,790,873
END OF PERIOD 262,250,780 270,181,105
Undistributed investment income--net 30,692 --
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,831,106 5,283,152
Shares issued for dividends reinvested 371,004 813,737
Shares redeemed (2,910,736) (8,234,926)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (708,626) (2,138,037)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how muchyour 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.
Six Months Ended
September 30, 2000 Year Ended March 31,
-----------------------------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C> <C>
beginning of period 12.81 13.08 13.08 12.91 12.97 12.82
Investment Operations:
Investment income--net .27 .54 .54 .55 .56 .58
Net realized and unrealized
gain (loss) on investments .06 (.27) .00(a) .17 (.06) .15
Total from Investment Operations .33 .27 .54 .72 .50 .73
Distributions:
Dividends from investment
income--net (.27) (.54) (.54) (.55) (.56) (.58)
Net asset value,
end of period 12.87 12.81 13.08 13.08 12.91 12.97
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 5.03(b) 2.10 4.23 5.64 3.96 5.78
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .71(b) .73 .73 .76 .80 .68
Ratio of net investment income
to average net assets 4.22(b) 4.15 4.15 4.19 4.33 4.49
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation -- -- -- -- .02 .05
Portfolio Turnover Rate 16.16(c) 39.10 20.68 31.12 47.84 44.39
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 262,251 270,181 303,791 294,432 325,013 338,061
(a) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(b) ANNUALIZED.
(c) 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 ("Manager") serves as the fund's investment adviser. The Manager is
a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of
Mellon Financial Corporation. Dreyfus Service Corporation (the "Distributor"), a
wholly-owned subsidiary of the Manager, 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
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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, if any, 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 $6,046,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 2000. This amount
is calculated based on Federal income tax regulations which may differ from
financial reporting in accordance with generally accepted accounting principles.
If not applied, $3,090,000 of the carryover expires in fiscal 2003, $2,874,000
expires in fiscal 2004, and $82,000 expires in fiscal 2008.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility ("the Facility") to be utilized for temporary or
emergency purposes, including the financing of redemp-
tions. In connection therewith, the fund has agreed to pay commitment fees on
its pro rata portion of the Facility. Interest is charged to the fund at rates
based on prevailing market rates in effect at the time of borrowings. During the
period ended September 30, 2000, 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 fees, 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, 2000, 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 pays the Distributor for distributing the fund's shares, for
servicing shareholder accounts, ("Servicing") and for advertising and marketing
relating to the fund. The plan provides payments to be made at an aggregate
annual rate of .10 of 1% of the value of the fund's average daily net assets.
The Distributor determines the amounts, if any, 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, 2000, the
fund was charged $132,711 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
September 30, 2000, the fund was charged $32,162 pursuant to the transfer agency
agreement.
(c) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective August 3, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $45,000 and an attendance fee of $5,000 for each in person meeting
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The Chairman of the Board receives an additional 25% of such
compensation. Prior to August 3, 2000, each Board member who was not an
"affiliated person" as defined in the Act received from the fund an annual fee
of $4,000 and an attendance fee of $500 per meeting. The Chairman of the Board
received an additional 25% of such compensation. Subject to the fund's Emeritus
Program Guidelines, Emeritus Board members, if any, receive 50% of the fund's
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
(d) A .10% redemption fee is charged and retained by the fund on shares redeemed
within thirty days of their issuance, including redemptions made through the use
of the fund's exchange privilege. Prior to June 1, 2000, this fee was chargeable
within fifteen days following the date of issuance of such shares.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 2000, amounted to
$41,940,573 and $54,361,843, respectively.
At September 30, 2000, accumulated net unrealized depreciation on investments
was $524,722, consisting of $507,142 gross unrealized appreciation and
$1,031,864 gross unrealized depreciation.
At September 30, 2000, 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).
The Fund
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
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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) 2000 Dreyfus Service Corporation 591SA009
