Dreyfus
New Jersey Municipal
Bond Fund, Inc.
SEMIANNUAL REPORT
June 30, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 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
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
<PAGE>
The Fund
Dreyfus New Jersey Municipal Bond Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus New Jersey
Municipal Bond Fund, Inc. covering the six-month period from January 1, 1999
through June 30, 1999. Inside, you'll find valuable information about how the
fund was managed during the period, including a discussion with the fund's
portfolio manager, W. Michael Petty.
The past six months have generally been rewarding for municipal bond investors.
The U.S. economy has entered its eighth year of expansion in an environment
characterized by low inflation and high levels of consumer spending. These
conditions have helped support the credit quality of many states and
municipalities.
Tax-exempt fixed-income securities provided especially attractive results
relative to taxable U.S. Treasury securities. While prices of U.S. Treasury
securities declined significantly, a lack of new issuance relative to robust
investor demand supported most municipal bond prices, which declined more
modestly. As a result, the differences in valuations between taxable and
tax-exempt bonds narrowed to more historically normal levels.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus New Jersey Municipal Bond Fund, Inc
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
July 15, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
W. Michael Petty, Portfolio Manager
How did Dreyfus New Jersey Municipal Bond Fund, Inc. perform during the period
The fund produced a -1.49% total return(1) over the six-month period ended June
30, 1999, compared to a total return of -1.53% for the average of the Lipper New
Jersey Municipal Debt Funds category.(2)
We attribute the fund's relative performance to our security selection strategy,
which focused primarily on high-quality municipal bonds issued by New Jersey,
its municipalities and authorities.
What is the fund's investment approach?
Our goal is to seek as high a level of current income exempt from federal and
New Jersey personal income taxes, as is consistent with the preservation of
capital.
Because New Jersey issues relatively few municipal bonds, we begin by evaluating
supply-and-demand factors within the state. We also look at such criteria as the
bond's yield, price, age, the creditworthiness of its issuer, insurance, and any
provisions for early redemption. Under most circumstances, we look for
investment-grade bonds with relatively high yields, which cannot be redeemed by
their issuers anytime soon and that are selling at a discount to their face
values.
While we do not attempt to predict changes in interest rates, we may tactically
manage the portfolio's average duration -- a measure of sensitivity to changes
in interest rates -- in anticipation of temporary supply-and-demand changes. If
we expect the supply of newly issued bonds to increase, for example, we may
reduce the portfolio's average duration to make cash available for the purchase
of higher-yielding securities. Conversely, if we expect demand for municipal
bonds to surge at a time when we anticipate little issuance, we may increase the
The Fund
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
portfolio' s average duration to maintain current yields for as long as
practical. At other times, we try to maintain a "neutral" average duration
consistent with other New Jersey municipal bond funds.
What other factors influenced the fund's performance?
Because of strong economic conditions throughout the country, New Jersey and its
municipalities have had little need to borrow. Yet, demand from investors
seeking to minimize their income tax liabilities remained high. This imbalance
between supply and demand helped keep municipal bond prices relatively stable
while comparable U.S. Treasury bond prices fell sharply.
In addition, the fund was negatively affected by rising interest rates over the
past six months. Economies in Japan and Southeast Asia appear to have begun to
recover, and the growth of the U.S. economy has been stronger than most analysts
expected. This economic news raised concerns among some fixed-income investors
that inflation pressures might re-emerge. In fact, the Federal Reserve Board
increased short-term interest rates on June 30 in an attempt to forestall a
reacceleration of inflation. Because the market anticipated this change in
monetary policy before it was announced, higher short-term rates had little
effect on longer-term tax-exempt yields.
What is the fund's current strategy?
We continue to search for attractive values in New Jersey's municipal bond
market. We have found such values, in our opinion, in bonds whose structures
make them ineligible for favorable tax treatment when they are held by
corporations. Because these bonds do not meet complex "de minimis" requirements
under current corporate tax law, they are priced as if their income is fully
taxable. Yet, they retain their tax-exempt status for individual investors,
including mutual fund shareholders.
<PAGE>
We have continued to focus on insured and highly-rated bonds. Because the
differences in yields between the highest-quality bonds and lower-quality bonds
are narrow by historical standards, we see little reason to assume the added
credit risk lower-rated bonds entail. As a result, more than 80% of the fund's
holdings were rated single-A or better as of June 30.
In addition, the fund' s average duration was approximately eight years as of
June 30, which we consider "neutral" relative to other New Jersey tax-exempt
bond funds. This position was the same as it had been at the start of the
six-month period, even though interest rates had risen considerably during the
period.
July 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES FOR NON-NEW JERSEY RESIDENTS, 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
<PAGE>
<TABLE>
STATEMENT OF INVESTMENTS
June 30, 1999 (Unaudited)
Principal
LONG-TERM MUNICIPAL INVESTMENTS--97.6% Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NEW JERSEY--84.9%
Atlantic County Utilities Authority, Solid Waste System
Revenue:
7%, 3/1/2008 4,250,000 4,209,285
7.125%, 3/1/2016 6,650,000 6,554,838
City of Camden:
Zero Coupon, 2/15/2010 (Insured; FSA) 2,500,000 1,454,975
Zero Coupon, 2/15/2012 (Insured; FSA) 4,585,000 2,371,683
Casino Reinvestment Development Authority, Parking Fee
Revenue
5.25%, 10/1/2014 (Insured; FSA) 3,000,000 3,004,710
Cherry Hill Township School District:
4.75%, 2/15/2018 (Insured; FSA) 1,250,000 1,171,287
4.75%, 2/15/2019 (Insured; FSA) 1,347,000 1,256,428
Clearview Regional High School District
5.375%, 8/1/2015 (Insured; FGIC) 3,625,000 3,707,324
Delaware River Port Authority, Highway Toll Revenue
5.50%, 1/1/2026 (Insured; FGIC) 3,000,000 3,025,320
East Orange:
Zero Coupon, 8/1/2010 (Insured; FSA) 4,240,000 2,410,355
Zero Coupon, 8/1/2011 (Insured; FSA) 2,500,000 1,339,525
East Orange Board of Education, COP, Lease Revenue:
5.50%, 8/1/2012 (Insured; FSA) 11,000,000 11,315,150
Zero Coupon, 2/1/2015 (Insured; FSA) 1,420,000 616,081
Zero Coupon, 8/1/2016 (Insured; FSA) 1,425,000 568,603
Zero Coupon, 8/1/2019 (Insured; FSA) 1,000,000 335,620
Zero Coupon, 2/1/2021 (Insured; FSA) 2,845,000 878,052
Zero Coupon, 2/1/2026 (Insured; FSA) 1,845,000 429,332
Zero Coupon, 2/1/2028 (Insured; FSA) 2,845,000 592,443
Essex County Improvement Authority, Revenue:
Lease:
7%, 12/1/2020
(Prerefunded 12/1/2000) (Insured; AMBAC) 4,000,000 (a) 4,257,600
(County Correctional Facility Project)
5.70%, 1/1/2027 (Insured; FGIC) 7,030,000 7,219,318
Water (Utility System - Orange Franchise)
5.75%, 7/1/2027 (Insured; MBIA) 2,000,000 2,060,160
Evesham Township Board of Education, COP,
Lease Purchase Agreement
6.875%, 9/1/2011 (Prerefunded 9/1/2001) (Insured; FGIC) 3,050,000 (a) 3,287,229
Gloucester County Industrial Pollution Control Financing
Authority,
Industrial Revenue (Mobil Oil Refining Corp. Project)
5.625%, 12/1/2028 (Guaranteed; Mobil Oil Refining Corp.) 1,000,000 1,015,000
<PAGE>
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
Gloucester County Utilities Authority, Sewer Revenue
5.45%, 1/1/2024 (Insured; MBIA) 1,250,000 1,268,825
Gloucester Township Municipal Utilities Authority, Sewer
Revenue
5.65%, 3/1/2018 (Insured; AMBAC) 2,530,000 2,660,118
Hillsborough Township School District:
5.40%, 10/1/2020 (Insured; FSA) 1,720,000 1,736,787
5.40%, 10/1/2021 (Insured; FSA) 1,270,000 1,281,328
Howell Township 6.80%, 1/1/2014 (Insured; FGIC) 5,000,000 5,349,550
Hudson County Improvement Authority:
Facility Lease Revenue 8.716%, 12/1/2025
(Prerefunded 12/1/2002) (Insured; FGIC) 13,835,000 (a,b,c) 15,898,905
MFHR (Conduit Financing - Observer Park Project)
6.90%, 6/1/2022 (Insured; FNMA) 4,190,000 4,448,858
Jersey City:
Zero Coupon, 5/15/2010 (Insured; FSA) 4,745,000 2,720,830
6%, 10/1/2008 (Insured; AMBAC) 2,490,000 2,686,785
6%, 10/1/2009 (Insured; AMBAC) 1,890,000 2,043,940
5.375%, 10/1/2013 1,000,000 1,013,010
Keansburg Board of Education, COP
8%, 11/1/2014 (Prerefunded 11/1/1999) 5,000,000 (a) 5,174,000
Mercer County Improvement Authority, Revenue (County Golf
Course Project) 5%, 12/1/2008 (Insured; FGIC) 755,000 729,926
Middlesex County Improvement Authority, Revenue:
(Golf Course Project) 5.20%, 2/1/2018 1,000,000 1,000,030
Utility System (Perth Amboy Project):
Zero Coupon 9/1/2020 (Insured; AMBAC) 5,000,000 1,572,400
Zero Coupon 9/1/2022 (Insured; AMBAC) 5,000,000 1,406,450
Monmouth County Improvement Authority, Revenue
(Asbury Park Project) 7.375%, 12/1/2009
(Prerefunded 12/1/1999) 3,000,000 (a) 3,108,120
New Brunswick Housing Authority, LR (Rutgers University)
4.625%, 7/1/2024 (Insured; FGIC) 3,750,000 3,351,450
New Brunswick Parking Authority, Revenue
7.125%, 9/1/2015 (Prerefunded 9/1/1999) (Insured; FGIC) 2,000,000 (a) 2,042,440
State of New Jersey:
6%, 7/15/2010 7,400,000 8,064,520
6.725%, 2/1/2014 10,000,000 (b) 9,724,400
COP 5%, 6/15/2014 1,185,000 1,149,166
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
New Jersey Economic Development Authority, Revenue:
(Community Mental Health Loan Program)
8.50%, 7/1/2017 7,085,000 7,668,450
District Heating and Cooling
(Trigen - Trenton District Energy Co. L.P. Project):
6.10%, 12/1/2004 3,190,000 3,339,994
6.20%, 12/1/2007 2,725,000 2,812,445
Economic Development:
(American Airlines Inc. Project) 7.10%, 11/1/2031 2,855,000 3,051,966
(Tevco Inc. Project)
8.125%, 10/1/2009 (LOC; Credit Lyonnais) 2,500,000 2,587,500
(United Methodist Homes of New Jersey Obligation)
5.50%, 7/1/2019 2,500,000 2,363,850
First Mortgage (The Evergreens)
9.25%, 10/1/2022 (Prerefunded 10/1/2002) 5,000,000 (a) 5,810,650
Health, Hospital and Nursing Home:
First Mortgage (Cadbury Corp. Project):
5.50%, 7/1/2018 (Insured; ACA) 1,000,000 988,970
5.50%, 7/1/2028 (Insured; ACA) 1,000,000 975,250
(Hillcrest Health Service):
Zero Coupon, 1/1/2012 (Insured; AMBAC) 1,000,000 519,320
Zero Coupon, 1/1/2013 (Insured; AMBAC) 1,000,000 489,570
Zero Coupon, 1/1/2015 (Insured; AMBAC) 3,250,000 1,412,060
Zero Coupon, 1/1/2017 (Insured; AMBAC) 5,000,000 1,941,000
Zero Coupon, 1/1/2018 (Insured; AMBAC) 2,500,000 914,450
Zero Coupon, 1/1/2020 (Insured; AMBAC) 6,500,000 2,119,975
Zero Coupon, 1/1/2022 (Insured; AMBAC) 6,000,000 1,752,000
Lease (Bergen County Administration Complex)
4.75%, 11/15/2026 (Insured; MBIA) 9,925,000 9,093,583
Local or Guaranteed Housing, First Mortgage
(Fellowship Village):
5.50%, 1/1/2018 2,500,000 2,388,300
5.50%, 1/1/2025 3,000,000 2,827,710
(Morris Hall / Saint Lawrence Inc. Project)
5.50%, 4/1/2027 (LOC; Corestates Bank) 3,500,000 3,510,535
Waste Paper Recycling (Marcal Paper Mills Inc. Project):
6.25%, 2/1/2009 6,605,000 6,909,755
8.50%, 2/1/2010 5,850,000 6,639,223
Water Facilities:
(American Water Co. Inc. Project)
6.50%, 4/1/2022 (Insured; FGIC) 11,500,000 12,207,020
(Elizabeth Water Co. Project) 6.70%, 8/1/2021 3,965,000 4,177,564
<PAGE>
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
New Jersey Educational Facilities Authority, Revenue:
(Georgian Court College Project) 5.20%, 7/1/2015 400,000 380,396
(New Jersey City University)
4.75%, 7/1/2020 (Insured; AMBAC) 1,000,000 930,220
(Saint Peter's College Project):
5.375%, 7/1/2018 1,000,000 963,140
5.50%, 7/1/2027 1,750,000 1,685,933
(Seton Hall University Project):
7%, 7/1/2021 2,320,000 2,452,843
7%, 7/1/2021 (Prerefunded 71/2001) 1,180,000 (a) 1,267,273
New Jersey Health Care Facilities Financing Authority,
Health, Hospital and Nursing Home Revenue:
(Burdette Tomlin Memorial Hospital):
5.50%, 7/1/2019 1,500,000 1,490,115
5.50% 7/1/2029 5,000,000 4,902,800
(Catholic Health East) 4.75%, 11/15/2021 2,000,000 1,835,860
(Centrastate Medical Center Obligation Group)
4.50%, 7/1/2028 (Insured: AMBAC) 5,000,000 4,282,550
(Kimball Medical Center)
8%, 7/1/2013 (Prerefunded 7/1/2000) 13,000,000 (a) 13,828,620
(Palisades Medical Center Obligation Group):
7.50%, 7/1/2006 700,000 750,967
7.50%, 7/1/2006 (Prerefunded 7/1/2002) 1,150,000 (a) 1,235,261
5.20%, 7/1/2019 (Insured; ACA) 2,250,000 2,167,403
7.60%, 7/1/2021 950,000 1,019,036
7.60%, 7/1/2021 (Prerefunded 7/1/2002) 1,400,000 (a) 1,550,346
5.25%, 7/1/2018 (Insured; ACA) 1,550,000 1,473,709
(Pascack Valley Hospital Association) 5.125%, 7/1/2028 4,050,000 3,616,529
(Raritan Bay Medical Center) 7.25%, 7/1/2014 12,300,000 12,529,026
(Saint Barnabas Health)
Zero Coupon, 7/1/2023 (Insured; MBIA) 5,000,000 1,317,300
(Saint Elizabeth Hospital Obligation Group):
6%, 7/1/2014 2,500,000 2,528,100
6%, 7/1/2020 3,000,000 3,022,410
(Virtua Health Issue) 4.50%, 7/1/2028 (Insured; FSA) 8,150,000 7,001,583
New Jersey Higher Education Assistance Authority,
Student Loan Revenue:
5.30%, 6/1/2017 (Insured; AMBAC) 9,250,000 9,261,008
5.25%, 6/1/2018 (Insured; MBIA) 2,050,000 2,035,343
New Jersey Highway Authority, Revenue (Garden State
Parkway) 6%, 1/1/2019 2,000,000 2,193,340
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
New Jersey Housing and Mortgage Finance Agency, Revenue:
Multi-Family Housing:
5.65%, 5/1/2040 (Insured; AMBAC) 15,000,000 15,162,600
(Presidential Plaza at Newport Project)
7%, 5/1/2030 (Insured; FHA) 4,000,000 4,275,480
Rental Housing (Tiffany Manor) 6.75%, 11/1/2022 9,310,000 9,787,882
New Jersey Sports and Exposition Authority, Recreational
Revenue 4.50%, 3/1/2024 5,000,000 4,362,500
New Jersey Transit Corp., Lease Purchase Agreement, COP
(Raymond Plaza East Inc.) 6.50%, 10/1/2016 (Insured; FSA) 3,945,000 4,333,306
New Jersey Transportation Trust Fund Authority
(Transportation System):
6.50%, 6/15/2011 (Insured; MBIA) 11,000,000 12,434,290
7%, 6/15/2012 (Insured; MBIA) 6,000,000 7,080,600
5%, 6/15/2018 (Insured; FSA) 13,550,000 13,169,787
New Jersey Turnpike Authority, Turnpike Revenue
6.50%, 1/1/2016 (Insured; MBIA) 14,665,000 16,687,743
North Jersey District Water Supply Commission, Sewer
Revenue
(Wanaque South Project) 6%, 7/1/2019 (Insured; MBIA) 2,000,000 2,171,360
Ocean County Pollution Control Financing Authority, PCR
(Ciba Geigy Corp. Project) 6%, 5/1/2020 10,000,000 10,476,800
Pennsauken Township School District
4.75%, 4/1/2018 (Insured; FGIC) 450,000 422,051
Perth Amboy Board of Education, COP
5%, 12/15/2017 (Insured; FSA) 2,050,000 1,958,345
Port Authority of New York and New Jersey:
(Delta Airlines Inc. Project) 6.95%, 6/1/2008 7,200,000 7,687,080
Port, Airport, and Marina Improvements Revenue:
5.25%, 7/1/2014 1,730,000 1,713,184
(Consolidated Bond 116th Series)
4.25%, 10/1/2026 (Insured; AMBAC) 19,085,000 15,887,499
Special Obligation Revenue:
(U.S. Air LaGuardia Project) 9.125%, 12/1/2015 6,500,000 6,996,340
(JFK International Air Terminal):
6.25%, 12/1/2015 (Insured; MBIA) 5,000,000 5,542,500
5.75%, 12/1/2022 (Insured; MBIA) 17,885,000 18,356,449
<PAGE>
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
Rutgers University, College and University Revenue
5.20%, 5/1/2022 4,400,000 4,333,208
South Jersey Transportation Authority, Revenue:
Port, Airport and Marina Lease
(Raytheon Aircraft Service Inc. Project) 6.15%, 1/1/2022 510,000 524,285
Transportation System 5%, 11/1/2029 (Insured; AMBAC) 3,250,000 3,124,745
University of Medicine and Dentistry
7.20%, 12/1/2019 (Prerefunded 12/1/1999) 5,710,000 (a) 5,913,733
Western Monmouth Utilities Authority, Sewer Revenue
5.60%, 2/1/2014 (Insured; AMBAC) 2,190,000 2,261,263
West New York Municipal Utilities Authority, Sewer Revenue
7.30%, 12/15/2017 (Prerefunded 12/15/2000)
(Insured; FGIC) 6,250,000 (a) 6,682,313
U.S. RELATED --12.7%
Guam Power Authority 5%, 10/1/2024 5,100,000 4,857,291
Commonwealth of Puerto Rico:
6.50%, 7/1/2014 (Insured; MBIA) 7,260,000 8,329,108
5.65%, 7/1/2015 (Insured; MBIA) 2,000,000 2,107,000
5.40%, 7/1/2025 6,300,000 6,217,659
5.375%, 7/1/2025 2,580,000 2,537,404
Public Improvement 6.80%, 7/1/2021
(Prerefunded 7/1/2002) 5,400,000 (a) 5,875,686
Puerto Rico Electric Power Authority, Power Revenue
5.50%, 7/1/2025 (Insured; AMBAC) 5,000,000 5,036,800
Puerto Rico Highway and Transportation Authority, Highway
Revenue:
5.309%, 7/1/2007 11,100,000 (b) 11,807,625
6.870%, 7/1/2009 2,950,000 (b) 3,097,500
6.625%, Series S, 7/1/2018 (Prerefunded 7/1/2002) 13,000,000 (a) 14,081,600
5%, 7/1/2036 8,000,000 7,471,760
Puerto Rico Ports Authority, Special Facilities Revenue
(American Airlines Inc. Project)
6.25%, 6/1/2026 (Guaranteed; AMR Corp.) 3,000,000 3,167,610
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $551,036,704) 569,666,793
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
SHORT-TERM MUNICIPAL INVESTMENTS--.3% Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY;
New Jersey Economic Development Authority, EDR, VRDN (El Dorado
Terminal Project) 3.50% (Guaranteed; Dow Chemical Corp.)
(cost $1,600,000) 1,600,000 (d) 1,600,000
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $552,636,704) 97.9% 571,266,793
CASH AND RECEVABLES (NET) 2.1% 12,100,386
NET ASSETS 100.0% 583,367,179
<PAGE>
Summary of Abbreviations
ACA American Capital Access LOC Letter of Credit
AMBAC American Municipal Bond Assurance LR Lease Revenue
Corporation MBIA Municipal Bond Investors
COP Certificate of Participation Assurance Insurance
EDR Economic Development Revenue Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
FNMA Federal National Mortgage Association VRDN Variable Rate Demand Notes
FSA Financial Security Assurance
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 63.3
AA Aa AA 7.0
A A A 12.0
BBB Baa BBB 9.9
B B B 1.2
F1 Mig1 SP1 .3
Not Rated(e) Not Rated(e) Not Rated(e) 6.3
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE
PERIODICALLY.
(C) 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 JUNE 30, 1999, THIS SECURITY
AMOUNTED TO $15,898,905 OR 2.7% OF NET ASSETS.
(D) SECURITIES PAYABLE ON DEMAND. VARIABLE RATE INTEREST--SUBJECT TO PERIODIC
CHANGE.
(E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
Cost Value
- -------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 552,636,704 571,266,793
Cash 2,307,679
Interest receivable 9,721,740
Receivable for investment securities sold 6,986,507
Receivable for shares of Common Stock subscribed 250
Prepaid expenses 16,517
590,299,486
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 390,479
Due to Distributor 14,299
Payable for investment securities purchased 6,367,809
Payable for shares of Common Stock redeemed 79,180
Accrued expenses 80,540
6,932,307
- --------------------------------------------------------------------------------
NET ASSETS ($) 583,367,179
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 562,642,961
Accumulated net realized gain (loss) on investments 2,094,129
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 18,630,089
- -------------------------------------------------------------------------------
NET ASSETS ($) 583,367,179
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(500 million shares of $.001 par value Common Stock authorized) 45,365,939
- -------------------------------------------------------------------------------
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 12.86
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 17,049,209
EXPENSES:
Management fee--Note 3(a) 1,788,005
Shareholder servicing costs--Note 3(b) 889,139
Professional fees 30,328
Custodian fees 28,989
Directors' fees and expenses--Note 3(c) 18,662
Prospectus and shareholders' reports--Note 3(b) 10,169
Registration fees 7,826
Loan commitment fees--Note 2 1,427
Miscellaneous 15,385
TOTAL EXPENSES 2,789,930
Less--reduction in management fee due to undertaking--Note 3(a) (106,496)
NET EXPENSES 2,683,434
INVESTMENT INCOME--NET 14,365,775
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-NOTE 4 ($):
Net realized gain (loss) on investments 535,516
Net unrealized appreciation (depreciation) on investments (23,948,722)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (23,413,206)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (9,047,431)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 14,365,775 29,114,716
Net realized gain (loss) on investments 535,516 4,847,822
Net unrealized appreciation (depreciation)
on investments (23,948,722) 154,655
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (9,047,431) 34,117,193
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (14,365,775) (29,114,716)
Net realized gain on investments - (4,012,166)
TOTAL DIVIDENDS (14,365,775) (33,126,882)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 47,139,054 92,256,576
Dividends reinvested 10,467,932 24,418,722
Cost of shares redeemed (57,214,466) (107,496,015)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 392,520 9,179,283
TOTAL INCREASE (DECREASE) IN NET ASSETS (23,020,686) 10,169,594
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 606,387,865 596,218,271
END OF PERIOD 583,367,179 606,387,865
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 3,551,944 6,885,374
Shares issued for dividends reinvested 792,073 1,821,205
Shares redeemed (4,317,759) (8,025,203)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 26,258 681,376
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased
(or decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Six Months Ended
June 30, 1999 Year Ended December 31,
-----------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 13.37 13.35 13.00 13.53 12.41 14.03
Investment Operations:
Investment income--net .32 .65 .68 .72 .74 .78
Net realized and unrealized
gain (loss) on investments (.51) .11 .44 (.30) 1.12 (1.61)
Total from Investment Operations (.19) .76 1.12 .42 1.86 (.83)
Distributions:
Dividends from investment
income--net (.32) (.65) (.68) (.72) (.74) (.77)
Dividends from net realized gain
on investments -- (.09) (.09) (.23) (.00)(a) --
Dividends in excess of net realized
gain on investments -- -- -- -- -- (.02)
Total Distributions (.32) (.74) (.77) (.95) (.74) (.79)
Net asset value, end of period 12.86 13.37 13.35 13.00 13.53 12.41
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (3.00)(b) 5.82 8.84 3.43 15.29 (6.02)
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .90(b) .90 .80 .80 .80 .77
Ratio of net investment income
to average net assets 4.82(b) 4.86 5.23 5.46 5.67 5.94
Decrease reflected in above
expense ratios due to
undertakings by the Manager .04(b) .04 .14 .14 .15 .20
Portfolio Turnover Rate 13.84(c) 36.39 28.01 31.30 24.37 10.02
Net Assets, end of period
($ x 1,000) 583,367 606,388 596,218 593,949 653,836 577,525
(A) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(B) ANNUALIZED.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus New Jersey Municipal Bond Fund, Inc. (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 and
New Jersey income taxes as is consistent with the preservation of capital. The
Dreyfus Corporation (the "Manager") serves as the fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund
Services, Inc. (the "Distributor" ) is the distributor of the fund's shares,
which are sold to the public without a sales charge.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued each business day
by an independent pricing service ("Service") approved by the fund's Board of
Directors. 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 dis
<PAGE>
counts 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.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
from investment income-net on each business day. 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, if any, 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.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
at the time of borrowings. During the period ended June 30, 1999, the fund did
not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .60 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 net assets for any full
fiscal year, the fund may deduct from payments to be made to the Manager, or the
Manager will bear such excess expense. The Manager had undertaken through June
30, 1999 to reduce the management fee paid by the fund, to the extent that the
fund' s aggregate annual expenses (exclusive of certain expenses as described
above) exceed an annual rate of .90 of 1% of the value of the fund's average
daily net assets. The reduction in management fee, pursuant to the undertaking,
amounted to $106,496 during the period ended June 30, 1999.
(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, and any affiliate of either of them
(collectively, "Dreyfus") for advertising and marketing relating to the fund and
for Servicing, at an aggregate annual rate of .25 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 amount, if any, to be paid to Service Agents and the basis on
which such payments are
<PAGE>
made. 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
value of the fund' s average daily net assets for any full year. During the
period ended June 30, 1999, the fund was charged $748,360 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 June 30, 1999, the fund was charged $98,708 pursuant to the transfer
agency agreement.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $2,500 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Director Emeritus receives 50% of such compensation.
(d) A 1% 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. During the period ended June
30, 1999, redemption fees retained by the fund amounted to $614.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended June 30, 1999, amounted to
$81,519,464 and $93,479,432, respectively.
At June 30, 1999, accumulated net unrealized appreciation on investments was
$18,630,089, consisting of $25,453,781 gross unrealized appreciation and
$6,823,692 gross unrealized depreciation.
At June 30, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
<PAGE>
For More Information
Dreyfus New Jersey
Municipal
Bond Fund, Inc.
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to
[email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 750AR996
<PAGE>
