Dreyfus
Short-Intermediate Municipal
Bond Fund
ANNUAL REPORT
March 31, 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 Fund Performance
7 Statement of Investments
14 Statement of Assets and Liabilities
15 Statement of Operations
16 Statement of Changes in Net Assets
17 Financial Highlights
18 Notes to Financial Statements
22 Report of Independent Auditors
23 Important Tax Information
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 annual report for Dreyfus Short-Intermediate
Municipal Bond Fund, covering the 12-month period from April 1, 1999 through
March 31, 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.
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 five times during the reporting period, for a total increase of 125 basis
points. While higher interest rates led to an erosion of municipal bond prices
during the first half of the reporting period, the overall market showed renewed
signs of strength during the first quarter of 2000.
Municipal bonds were also influenced by supply-and-demand considerations. These
technical influences have caused the yields of tax-exempt bonds to rise to very
attractive levels 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 and state income tax brackets.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Short-Intermediate Municipal Bond Fund.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF FUND PERFORMANCE
Samuel Weinstock, Portfolio Manager
How did Dreyfus Short-Intermediate Municipal Bond Fund perform during the
period?
The fund produced a 2.10% total return over the 12-month period ended March 31,
2000.(1) This compares with a 1.81% total return for the Lipper
Short-Intermediate Municipal Debt Funds category average.(2) We attribute our
performance to our conservative security selection strategy in a rising
interest-rate environment. By effectively managing the risks that typically
affect the municipal bond market when interest rates are rising, we were able to
earn competitive levels of income without heightened volatility.
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
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
that they will participate strongly in market rallies and provide protection
against market declines.
What other factors influenced the fund's performance?
Although the fund's performance was hurt by a difficult investment environment
during much of 1999, the first quarter of 2000 provided better market conditions
and a market rally.
When the reporting period began on April 1, 1999, investors had become concerned
that strong economic growth might rekindle long-dormant inflationary pressures.
In an attempt to forestall a reacceleration of inflation, the Federal Reserve
Board raised short-term interest rates five times during the 12-month reporting
period, for a total increase of 125 basis points since last summer, causing most
bond prices to fall.
Municipal bond prices also fell during 1999 because of adverse supply-and-demand
influences. For a variety of reasons, institutional investors participated less
in the tax-exempt market. Despite strong demand from individual investors, the
absence of institutional buyers helped reduce overall demand and drove municipal
bond prices down. During the first quarter of 2000, however, issuance of
municipal bonds nationally declined approximately 40% compared to the same
period one year ago. This supply reduction, combined with robust demand from
individual investors, helped support a rebound of municipal bond prices.
What is the fund's current strategy?
We continue to manage the fund according to the prevailing supply-and-demand
influences that are affecting the short- and intermediate-term sectors of the
national municipal bond market. Because of these influences, combined with the
effects of a more restrictive monetary policy from the Federal Reserve Board,
there recently has been little difference between the yields of short-term and
intermediate-term tax-exempt securities. Accordingly, we have focused primarily
on shorter term investments in order to maintain the flexibility we need to
capture higher yields if and when they become available.
On the other hand, the yield differences between highly rated and lower rated
securities widened toward the end of the reporting period, creating attractive
values among lower rated paper in the two- to four-year maturity range. In fact,
some tax-exempt securities in this maturity range have recently provided higher
nominal yields than taxable U.S. Treasury notes of the same maturities.
We have implemented few major changes to the fund's asset mix, increasing only
slightly our exposure to securities issued by utilities and industrial
development regions. Nor has the fund's average duration changed significantly
over the past year, ending the reporting period only slightly shorter than where
it began. That's because the risks of longer duration securities have been
greater than the yield advantages they provide over short-term paper. Looking
forward, the fund's current average duration leaves us plenty of room for
extension when the time is right for such a move.
April 12, 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 ANALYTICAL SERVICES, INC.
The Fund
FUND PERFORMANCE
Lehman Brothers 10-year
Municipal Bond Index ((+)) $20,263
Dreyfus Short-Intermediate
Municipal Bond Fund $16,318
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
--------------------------------------------------------------------------------
<TABLE>
Average Annual Total Returns AS OF 3/31/00
1 Year 5 Years 10 Years
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FUND 2.10% 4.33% 5.02%
</TABLE>
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
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 3/31/90 TO A $10,000 INVESTMENT MADE IN THE LEHMAN
BROTHERS 10-YEAR MUNICIPAL BOND INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL
GAIN DISTRIBUTIONS ARE REINVESTED.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. FURTHER INFORMATION
RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE,
IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE
IN THIS REPORT.
STATEMENT OF INVESTMENTS
<TABLE>
March 31, 2000
Principal
LONG-TERM MUNICIPAL INVESTMENTS--100.1% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ALASKA--2.0%
Alaska Student Loan Corp., Student Loan Revenue:
5.25%, 7/1/2001 (Insured; AMBAC) 1,000,000 1,006,950
North Slope Borough:
Zero Coupon, 6/30/2000 (Insured; MBIA) 2,500,000 2,473,475
Zero Coupon, 6/30/2001 (Insured; MBIA) 2,000,000 1,888,940
CALIFORNIA--4.5%
Riverside County Public Financing Authority, COP:
5%, 5/15/2002 930,000 925,424
5%, 5/15/2003 980,000 968,367
5.125%, 5/15/2004 1,030,000 1,012,737
5.125%, 5/15/2005 500,000 487,045
Sacramento County Housing Authority, MFHR:
(Oars Apartments) 4.80%, 12/15/2000
(LOC; Dai Ichi Kangyo Bank) 5,850,000 5,849,591
(Rancho Natamos Apartment) 4.80%, 12/15/2000
(LOC; Dai Ichi Kangyo Bank) 3,000,000 3,000,000
COLORADO--1.0%
Denver City and County Airport, Revenue:
5.05%, 11/15/2000 1,495,000 1,500,277
5.10%, 11/15/2001 1,160,000 1,162,703
CONNECTICUT--2.1%
Connecticut Development Authority
First Mortgage Gross Revenue
(Health Care Project--Elim Park Baptist)
4.70%, 12/01/2001 1,765,000 1,727,900
Greenwich Housing Authority, MFHR (Greenwich Close):
5.15%, 9/1/2000 220,000 219,549
5.35%, 9/1/2001 230,000 228,353
5.55%, 9/1/2002 245,000 242,109
5.95%, 9/1/2006 310,000 302,414
6.05%, 9/1/2007 330,000 320,971
Mashantucket Western Pequot Tribe, Special Revenue
6.25%, 9/1/2001 2,500,000 (a) 2,561,525
DISTRICT OF COLUMBIA--4.0%
District of Columbia, GO 5.50%, 6/1/2002 9,930,000 10,043,202
District of Columbia Redevelopment Land Agency, Special Tax
Revenue (Washington D.C. Sports Arena) 5.40%, 11/1/2000 750,000 752,370
FLORIDA--2.5%
Escambia County Health Facilities Authority, Health Facilities
Revenue (Azalea Trace Inc.):
5%, 1/1/2001 830,000 827,228
5.10%, 1/1/2002 870,000 861,213
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
Florida Housing Finance Agency, Multi-Family Housing
5.35%, Series E, 6/1/2000 5,085,000 5,085,000
ILLINOIS--3.6%
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers):
5.60%, 7/1/2001 1,530,000 1,531,928
5.60%, 7/1/2002 1,415,000 1,414,830
8.50%, 9/1/2010 (Prerefunded 9/1/2000) 2,985,000 (b) 3,092,371
Illinois Health Facilities Authority, Revenue:
(Victory Health Services) 5%, 8/15/2002 1,590,000 1,578,520
(Beverly Farm Foundation) 9.125%, 12/15/2015
(Prerefunded 12/15/2000) 2,000,000 (b) 2,120,480
LOUISIANA--1.8%
Saint Charles Parish, PCR
(Entergy La Inc. Project) 4.85%, 6/1/2002 5,000,000 4,929,100
MARYLAND--3.2%
Frederick County Retirement Community, Revenue
(Extras-Buckinghams Choice):
5.25%, 1/1/2002 1,500,000 1,482,525
5.375%, 1/1/2003 4,900,000 4,858,301
Maryland State Energy Financing Administration, SWDR
(Wheelabrator Water Projects):
5.30%, 12/1/2000 1,250,000 1,257,013
5.45%, 12/1/2001 1,000,000 1,008,400
MASSACHUSETTS--2.8%
Massachusetts Health & Educational Facilities Authority, Revenue
(Caritas Christi Obligation Group) 5.25%, 7/1/2003 5,730,000 5,595,345
Massachusetts Industrial Finance Agency, Revenue
(Chestnut Knoll) 5%, 2/1/2003 2,000,000 1,944,780
MICHIGAN--5.6%
Flint Hospital Building Authority, Revenue
(Hurley Medical Center) 5.50%, 7/1/2000 1,225,000 1,225,490
Greater Detroit, Resource Recovery Authority, Revenue
5%, 12/13/2000 (Insured; AMBAC) 2,500,000 2,514,250
Michigan Hospital Finance Authority, HR
(Genesys Regional Medical):
5.25%, 10/1/2001 2,000,000 2,020,220
5.25%, 10/1/2002 1,000,000 1,011,660
5.25%, 10/1/2003 2,445,000 2,476,541
Michigan Housing Development Authority, Rental
Housing Revenue 5.15%, 4/1/2000 (Insured; MBIA) 1,975,000 1,975,000
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (CONTINUED)
Michigan Strategic Fund, LOR
(Detroit Edison) 4.73%, 9/1/2001 3,750,000 3,749,363
MISSISSIPPI--.9%
Jackson Housing Authority, MFHR
(Arbor Park Apartment Project) 5.05%, 12/1/2001 2,500,000 2,490,525
NEW HAMPSHIRE--1.8%
New Hampshire Business Finance Authority, PCR
(United Illuminated) 4.55%, 2/1/2004 5,000,000 4,748,700
NEW JERSEY--2.8%
Monroe Township Municipal Utilities Authority,
Water and Sewer System Revenue
6.875%, 2/1/2017 (Insured; MBIA) 3,075,000 3,143,573
New Jersey Economic Development Authority,
First Mortgage Revenue
(Cadbury Corp. Project):
4.80%, 7/1/2001 (Insured; ACA) 1,565,000 1,557,206
5%, 7/1/2003 (Insured; ACA) 1,410,000 1,388,751
New Jersey Health Care Facilities Financing Authority, Revenue
(Saint Peter's Medical Center) 6%, 7/1/2001
(Insured; MBIA) (Prerefunded 7/1/2001) 1,500,000 (b) 1,528,125
NEW MEXICO--3.0%
Albuquerque, Gross Receipts Tax Subordinate Lien
(Affordable Housing Project)
5.375%, 7/1/2001 6,125,000 6,128,185
Santa Fe County, Project Revenue
(El Castillo Retirement) 5.25%, 5/15/2003 2,000,000 1,949,640
NEW YORK--25.0%
New York City:
5%, 10/15/2001 4,300,000 4,331,390
5%, 10/15/2001 3,200,000 3,217,664
5.10%, 2/15/2001 1,185,000 1,192,868
5.10%, 2/15/2001 815,000 821,528
5.50%, 8/1/2001 9,000,000 9,103,950
New York State Dormitory Authority, Revenue:
(City University System) 5.10%, 7/1/2001 1,285,000 1,291,489
Lease, Refunding (State University Dormitory Facilities)
4.875%, 7/1/2000 5,000,000 5,009,050
(Mental Health Services Facilities):
5%, 2/15/2001 6,985,000 7,016,572
5%, Series A, 2/15/2002 1,590,000 1,592,306
5%, Series B, 2/15/2002 7,095,000 7,105,288
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Energy Research and Development Authority,
Service Contract Revenue
(Western New York Nuclear Service Center Project):
5%, 4/1/2001 1,625,000 1,634,198
5%, 4/1/2002 1,795,000 1,799,559
New York State Housing Finance Agency, Revenue
(Health Facilities-New York City):
5.15%, 5/1/2000 1,140,000 1,140,627
5.15%, 11/1/2000 1,430,000 1,435,577
5.875%, 5/1/2004 6,500,000 6,646,055
New York State Mortgage Agency, Revenue
(Homeowner Mortgage) 5.15%, 9/1/2004 5,000,000 4,929,300
TSASC Inc., Tobacco Flexible Amortization Bonds:
5%, 7/15/2008 2,690,000 2,637,088
5%, 7/15/2009 1,000,000 977,060
5.125%, 7/15/2009 2,310,000 2,258,117
Yonkers Industrial Development Agency,
Civic Facility Revenue
(Saint Joseph Hospital Yonkers):
5.65%, Series A, 3/1/2003 1,900,000 1,870,778
5.65%, Series B, 3/1/2003 600,000 590,772
5.65%, Series C, 3/1/2003 900,000 886,158
NORTH CAROLINA--3.3%
North Carolina Eastern Municipal Power Agency,
Power System Revenue:
5.20%, 1/1/2001 5,000,000 5,017,100
5%, 1/1/2002 4,000,000 3,975,240
NORTH DAKOTA--.7%
North Dakota Housing Finance Agency, Revenue
(Housing Finance Program--Home Mortgage Finance)
4.60%, 1/1/2003 1,945,000 1,905,614
OHIO--1.3%
Belmont County, Health System Revenue
(East Ohio Regional Hospital):
4.30%, 1/1/2001 (Insured; ACA) 800,000 799,104
4.40%, 1/1/2002 (Insured; ACA) 900,000 888,111
Hamilton County, Local District Cooling Facilities Revenue
(Trigen Cinergy) 4.90%, 6/1/2004 2,000,000 1,930,120
OKLAHOMA--.5%
Holdenville Industrial Authority, Correctional Facility Revenue
5.70%, 7/1/2001 1,175,000 1,189,934
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--7.9%
Dauphin County General Authority, Revenue
(Office and Package--Riverfront Office) 5.125%, 1/1/2003 1,920,000 1,878,048
Delaware County Industrial Development Authority, Revenue:
(Resource Recovery Facility) 5.30%, 1/1/2001 7,685,000 7,656,181
PCR (Peco Energy Company Project) 5.20%, 10/1/2004 3,000,000 2,910,000
Montgomery County Industrial Development Authority, PCR
(Peco Energy Company Project):
5.20%, 10/1/2004 1,500,000 1,455,585
5.30%, 10/1/2004 3,380,000 3,293,066
Philadelphia Hospitals and Higher Education Facilities Authority, HR
(Pennsylvania Hospital) 5.50%, 7/1/2000 4,165,000 4,177,245
RHODE ISLAND--1.9%
Rhode Island Housing and Mortgage Finance Corp.,
Multi-Family Housing
5%, 7/1/2000 (Insured; AMBAC) 5,000,000 5,003,650
SOUTH CAROLINA--1.7%
Charleston County Health Facilities, First Mortgage Revenue
(Episcopal Project) 5.30%, 10/1/2002 4,660,000 4,560,043
TEXAS--11.3%
Brazos River Authority, PCR
(Utilities Electric Co.):
3.70%, 4/1/2000 5,000,000 5,000,000
5%, 4/1/2001 5,000,000 5,000,000
Matagorda County Navigation District No. 1, PCR:
(Central Power & Light):
4.90%, 11/1/2001 1,000,000 997,400
4.95%, 11/1/2001 100,000 99,605
4.706%, 11/1/2001 2,500,000 (c) 2,487,750
4.748%, 11/1/2001 6,700,000 (c) 6,649,080
Northeast Hospital Authority, Revenue
(Northeast Medical Center Hospital):
5.10%, 5/15/2000 1,230,000 1,229,754
5.25%, 5/15/2001 1,300,000 1,296,880
5.35%, 5/15/2002 2,725,000 2,712,710
Texas Public Property Finance Corp., Revenue
(Mental Health & Retardation Center)
8.20%, 10/1/2012 (Prerefunded 10/1/2002) 2,900,000 (b) 3,249,450
Tyler Health Facilities Development Corporation
(Mother Frances Hospital):
5.25%, 7/1/2001 700,000 697,200
5.25%, 7/1/2002 1,200,000 1,188,804
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA--2.9%
Bedford County Industrial Development Authority, Revenue
(Georgia Pacific Corp. Project) 4.60%, 8/1/2004 2,760,000 2,712,749
Hopewell Industrial Development Authority,
Health Care Facility Revenue
(Westport Convalescent Center) 5.15%, 10/1/2000 205,000 204,633
Rockingham County Industrial Development Authority,
Residential Care Facility, Revenue
(First Mortgage--Mennonite) 5.10%, 4/1/2003 3,800,000 3,736,920
Virginia Housing Development Authority,
Commonwealth Mortgage 6.10%, 7/1/2002 1,220,000 1,242,472
U.S. RELATED--2.0%
Virgin Islands Public Finance Authority, Revenue
5%, 10/1/2003 5,580,000 5,524,535
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $272,067,339) 100.1% 270,324,542
LIABILITIES, LESS CASH AND RECEIVABLES ( .1%) (143,437)
NET ASSETS 100.0% 270,181,105
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
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 13.1
AA Aa AA 7.4
A A A 25.3
BBB Baa BBB 31.8
BB Ba BB 2.8
F1 MIG1/P1 SP1/A1 3.7
Not Rated (d) Not Rated (d) Not Rated (d) 15.9
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 MARCH 31, 2000, THIS
SECURITY AMOUNTED TO $2,561,525 OR .9% 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 MARCH 31, 2000, THE FUND HAD $87,750,480 (32.5% OF NET ASSETS) INVESTED
IN SECURITIES WHOSE PAYMENT OF PRINCIPAL AND INTEREST IS DEPENDENT UPON
REVENUES GENERATED FROM HEALTH CARE PROJECTS.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 272,067,339 270,324,542
Cash 813,371
Interest receivable 4,195,190
Receivable for shares of Beneficial Interest subscribed 88,000
Prepaid expenses 13,310
275,434,413
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 129,794
Due to Distributor 22,959
Payable for investment securities purchased 5,001,389
Payable for shares of Beneficial Interest redeemed 4,526
Accrued expenses 94,640
5,253,308
--------------------------------------------------------------------------------
NET ASSETS ($) 270,181,105
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 278,120,668
Accumulated net realized gain (loss) on investments (6,196,766)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (1,742,797)
--------------------------------------------------------------------------------
NET ASSETS ($) 270,181,105
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of
Beneficial Interest authorized) 21,091,257
NET ASSET VALUE, offering and redemption price per
share--Note 3(d) ($) 12.81
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended March 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 14,226,811
EXPENSES:
Management fee--Note 3(a) 1,456,780
Shareholder servicing costs--Note 3(b) 427,045
Trustees' fees and expenses--Note 3(c) 60,794
Registration fees 58,665
Professional fees 55,198
Custodian fees 31,871
Prospectus and shareholders' reports-Note 3(b) 14,607
Loan commitment fees--Note 2 2,919
Miscellaneous 25,348
TOTAL EXPENSES 2,133,227
INVESTMENT INCOME--NET 12,093,584
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (204,991)
Net unrealized appreciation (depreciation) on investments (5,884,122)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (6,089,113)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 6,004,471
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended March 31,
---------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 12,093,584 12,277,641
Net realized gain (loss) on investments (204,991) 460,204
Net unrealized appreciation (depreciation)
on investments (5,884,122) (618,264)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 6,004,471 12,119,581
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (12,093,584) (12,277,641)
Net realized gain on investments (29,066) --
TOTAL DIVIDENDS (12,122,650) (12,277,641)
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BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 68,318,437 85,065,492
Dividends reinvested 10,505,175 10,578,644
Cost of shares redeemed (106,315,201) (86,126,925)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (27,491,589) 9,517,211
TOTAL INCREASE (DECREASE) IN NET ASSETS (33,609,768) 9,359,151
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 303,790,873 294,431,722
END OF PERIOD 270,181,105 303,790,873
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 5,283,152 6,495,980
Shares issued for dividends reinvested 813,737 807,710
Shares redeemed (8,234,926) (6,580,022)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,138,037) 723,668
SEE NOTES TO FINANCIAL STATEMENTS.
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>
Year Ended March 31,
-------------------------------------------------------------------
2000 1999 1998 1997 1996
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<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.08 13.08 12.91 12.97 12.82
Investment Operations:
Investment income--net .54 .54 .55 .56 .58
Net realized and unrealized
gain (loss) on investments (.27) .00(a) .17 (.06) .15
Total from Investment Operations .27 .54 .72 .50 .73
Distributions:
Dividends from investment income--net (.54) (.54) (.55) (.56) (.58)
Net asset value, end of period 12.81 13.08 13.08 12.91 12.97
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 2.10 4.23 5.64 3.96 5.78
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .73 .73 .76 .80 .68
Ratio of net investment income
to average net assets 4.15 4.15 4.19 4.33 4.49
Decrease reflected in above
expense ratios due to
undertakings by The Dreyfus Corporation -- -- -- .02 .05
Portfolio Turnover Rate 39.10 20.68 31.12 47.84 44.39
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Net Assets, end of period ($ x 1,000) 270,181 303,791 294,432 325,013 338,061
(a) AMOUNT REPRESENTS LESS THAN $.01.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
</TABLE>
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., which is a wholly-owned subsidiary
of Mellon Financial Corporation. Effective March 22, 2000, Dreyfus Service
Corporation ("DSC"), a wholly-owned subsidiary of the Manager, became the
distributor of the fund's shares. Prior to March 22, 2000, Premier Mutual Fund
Services, Inc. was the distributor.
The fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued each business day
by an independent pricing service ("Service") approved by the Board of Trustees.
Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service are
valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the fund receives net earnings credits based on available cash
balances left on deposit.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
"Code"). To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $6,046,000
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
The Fund
NOTES TO FINANCIAL STATEMENTS (continued)
temporary or emergency purposes, including the financing of redemptions. In
connection therewith, the fund has agreed to pay commitment fees on its pro rata
portion of the Facility. Interest is charged to the fund at rates based on
prevailing market rates in effect at the time of borrowings. During the period
ended March 31, 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, 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, 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 (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, 2000, the
fund was charged $296,330 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, 2000, the fund was charged $81,509 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 March 31, 2000, amounted to
$113,919,869 and $151,539,705, respectively.
At March 31, 2000, accumulated net unrealized depreciation on investments was
$1,742,797, consisting of $468,122 gross unrealized appreciation and $2,210,919
gross unrealized depreciation.
At March 31, 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
REPORT OF 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, 2000, 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 auditing standards generally accepted
in the United States. 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 financial highlights. Our procedures included
confirmation of securities owned as of March 31, 2000 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, 2000, 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 accounting principles generally
accepted in the United States.
Ernst & Young LLP
(Signature logo)
New York, New York
May 1, 2000
Important Tax Information (Unaudited)
In accordance with Federal tax law, the fund hereby makes the following
designates all the dividends paid from investment income-net during its fiscal
year ended March 31, 2000 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 2000 calendar year on Form 1099-DIV which
will be mailed by January 31, 2001.
The Fund
NOTES
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
