Dreyfus
New Jersey Municipal
Bond Fund, Inc.
SEMIANNUAL REPORT June 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
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Back Cover
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, 2000
through June 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, W. Michael Petty.
The U.S. economy grew rapidly over the past six months in an environment
characterized by high levels of consumer spending and low levels of
unemployment. Concerns that inflationary pressures might reemerge caused the
Federal Reserve Board to raise short-term interest rates three times during the
reporting period, for a total increase of 1.00 percentage points. These
interest-rate hikes contributed to a total interest-rate increase of 1.75
percentage points since late June 1999, before the current reporting period
began.
However, supply-and-demand factors unique to the municipal bond market helped
constrain price erosion. Because of robust economic growth, most municipalities
had little need to borrow during the reporting period, creating a reduced supply
of new issues. As a result, market rallies during the first quarter of 2000 and
June generally offset declines in April and May, leaving municipal bond averages
relatively unchanged during the reporting period.
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 17, 2000
DISCUSSION OF FUND PERFORMANCE
W. Michael Petty, Portfolio Manager
How did Dreyfus New Jersey Municipal Bond Fund, Inc. perform during the period?
For the six-month period ended June 30, 2000, the fund produced a 4.26% total
return.(1) In comparison, the Lipper New Jersey Municipal Debt Funds category
average provided a 3.84% total return for the same period.(2)
We attribute the fund's performance to our relatively defensive strategy. More
specifically, the fund was able to avoid the full brunt of the effects of rising
interest rates by maintaining a relatively short average duration (a measure of
sensitivity to changing interest rates) and receiving highly competitive prices
for the sale of securities through the secondary market by taking advantage of
strong demand from individual investors.
What is the fund's investment approach?
Our goal is to seek a high level of current income exempt from federal and New
Jersey personal income taxes as is consistent with the preservation of capital.
To achieve this objective, we employ two primary strategies. First, because New
Jersey issues relatively few municipal bonds, we begin by evaluating
supply-and-demand factors in the bond market. We look at such criteria as the
bond' s yield, price, age, creditworthiness of its issuer, insurance and any
provisions for early redemption. Under most circumstances, we look for
investment grade bonds that have 10-year call protection and that are selling at
a discount to face value.
Second, while we generally do not attempt to predict changes in interest rates,
we may tactically manage the fund' s average duration in anticipation of
temporary supply-and-demand changes. If we expect the supply of newly issued
bonds to increase, we may reduce the fund's average duration to make cash
available for the purchase of higher yielding
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
securities. Conversely, if we expect demand for municipal bonds to surge at a
time when we anticipate little issuance, we may increase the fund's average
duration to maintain current yields for as long as practical.
What other factors influenced the fund's performance?
The fund was influenced by changing market conditions and shifting investor
sentiment over the past six months. Although the first quarter of 2000
experienced an encouraging municipal bond market rally, April and May saw a more
difficult investment environment before a final rally in June. As a result,
performance on a total return basis was modestly positive over the full
six-month reporting period.
When the reporting period began on January 1, 2000, investors were relieved that
widespread Y2K-related concerns had proven largely unfounded. However, they soon
became worried that strong economic growth in U.S. and worldwide economies might
rekindle long-dormant inflationary pressures, especially given rising wages in a
tight job market. In an attempt to ease these pressures and forestall a
reacceleration of inflation, the Federal Reserve Board raised short-term
interest rates three times during the reporting period, causing most bond prices
to fall, including those of many of the fund's holdings.
However, interest-rate-related declines were offset by positive
supply-and-demand influences that were unique to the municipal bond market.
During the first half of 2000, issuance of municipal bonds nationally declined
sharply compared to the same period one year ago. This supply reduction,
combined with continued robust demand from individual investors, helped support
a rebound of municipal bond prices, from which the fund's holdings benefited.
The fund's performance also benefited from its relatively defensive posture
during those months in which the market declined. We maintained a modestly short
average duration when possible, focusing on investment grade bonds with strong
income characteristics. We also increased the fund's cash position to
approximately 5% of assets, which is higher than average.
What is the fund's current strategy?
Our current strategy is to seek the highest returns possible while reducing
volatility and protecting assets if interest rates rise further. Accordingly, we
have attempted to maintain the portfolio's modestly short average duration in an
attempt to protect our holdings from the brunt of potential price depreciation
and capture higher yields as they become available.
From a security selection perspective, we have reduced our holdings of discount
bonds, which have recently rebounded, and we have enlarged our holdings of
insured bonds with competitive yields. While our ability to find such
opportunities has been constrained by the small size of the New Jersey municipal
marketplace and by the reduced supply of newly issued bonds, our move to higher
yielding securities has helped to offset some of the price decline caused by
rising interest rates. We have also begun to put some of our cash reserves to
work by purchasing Puerto Rico bonds, the income from which is tax-exempt for
New Jersey residents.
July 17, 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 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. RETURN FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND
EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT THAT
MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT BEEN
ABSORBED, THE FUND'S RETURN WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER INC.
The Fund
STATEMENT OF INVESTMENTS
<TABLE>
June 30, 2000 (Unaudited)
Principal
LONG-TERM MUNICIPAL INVESTMENTS--95.1% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NEW JERSEY--86.3%
Atlantic County Utilities Authority,
Solid Waste System Revenue:
7%, 3/1/2008 4,250,000 4,173,797
7.125%, 3/1/2016 6,650,000 6,462,470
Bayshore Regional Sewer Authority, Sewer Revenue
5.50%, 4/1/2012 (Insured; MBIA) 2,000,000 2,039,620
City of Camden:
Zero Coupon, 2/15/2010 (Insured; FSA) 2,500,000 1,500,475
Zero Coupon, 2/15/2012 (Insured; FSA) 4,585,000 2,438,761
Cherry Hill Township School District:
4.75%, 2/15/2018 (Insured; FSA) 1,250,000 1,124,737
4.75%, 2/15/2019 (Insured; FSA) 1,347,000 1,200,514
Clearview Regional High School District
5.375%, 8/1/2015 (Insured; FGIC) 3,625,000 3,647,185
Delaware River and Bay Authority, Revenue
5.25%, 1/1/2026 (Insured; FGIC) 5,000,000 4,702,600
East Orange:
Zero Coupon, 8/1/2010 (Insured; FSA) 4,240,000 2,507,833
Zero Coupon, 8/1/2011 (Insured; FSA) 2,500,000 1,394,575
East Orange Board of Education, COP, Lease Revenue:
Zero Coupon, 2/1/2015 (Insured; FSA) 1,420,000 623,337
Zero Coupon, 8/1/2016 (Insured; FSA) 1,425,000 569,387
Zero Coupon, 8/1/2019 (Insured; FSA) 1,000,000 326,280
Zero Coupon, 2/1/2021 (Insured; FSA) 2,845,000 843,286
Zero Coupon, 2/1/2026 (Insured; FSA) 1,845,000 403,003
Zero Coupon, 2/1/2028 (Insured; FSA) 2,845,000 550,138
Essex County Improvement Authority, Lease Revenue:
7%, 12/1/2020
(Prerefunded 12/1/2000) (Insured; AMBAC) 4,000,000 (a) 4,123,280
(County Correctional Facility Project)
6%, 10/1/2025 (Insured; FGIC) 10,000,000 10,311,700
Evesham Township Board of Education, COP,
Lease Purchase Agreement 6.875%, 9/1/2011
(Prerefunded 9/1/2001) (Insured; FGIC) 3,050,000 (a) 3,192,435
Gloucester Township Municipal Utilities Authority, Sewer
Revenue 5.65%, 3/1/2018 (Insured; AMBAC) 2,530,000 2,579,512
Hudson County Improvement Authority:
Facility Lease Revenue 7.42%, 12/1/2025
(Prerefunded 12/1/2002) (Insured; FGIC) 13,835,000 (a,b,c) 15,184,189
MFHR (Conduit Financing - Observer Park Project)
6.90%, 6/1/2022 (Insured; FNMA) 4,190,000 4,312,348
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
Jersey City:
Zero Coupon, 5/15/2010 (Insured; FSA) 4,745,000 2,832,101
6%, 10/1/2008 (Insured; AMBAC) 2,490,000 2,662,532
Middlesex County Improvement Authority, Revenue
Utility System (Perth Amboy Project):
Zero Coupon 9/1/2020 (Insured; AMBAC) 5,000,000 1,549,050
Zero Coupon 9/1/2022 (Insured; AMBAC) 5,000,000 1,370,250
State of New Jersey:
6%, 7/15/2010 7,400,000 7,987,560
5%, 2/1/2014 4,940,000 4,776,634
New Jersey Economic Development Authority, Revenue:
(Community Mental Health Loan Program)
8.50%, 7/1/2017 6,885,000 7,564,274
(Department of Human Services):
6.10%, 7/1/2017 4,370,000 4,456,832
6.25%, 7/1/2024 890,000 912,286
District Heating and Cooling
(Trigen - Trenton District Energy Co. L.P. Project):
6.10%, 12/1/2004 2,815,000 2,816,436
6.20%, 12/1/2007 2,725,000 2,669,928
Economic Development:
(American Airlines Inc. Project) 7.10%, 11/1/2031 2,855,000 2,884,892
(Tevco Inc. Project)
8.125%, 10/1/2009 (LOC; Credit Lyonnais) 2,500,000 2,577,375
(United Methodist Homes of New Jersey Obligation)
5.50%, 7/1/2019 2,500,000 2,009,700
First Mortgage (The Evergreens)
9.25%, 10/1/2022 (Prerefunded 10/1/2002) 4,900,000 (a) 5,444,390
Health, Hospital and Nursing Home:
First Mortgage (Cadbury Corp. Project)
5.50%, 7/1/2018 (Insured; ACA) 1,000,000 930,340
(Hillcrest Health Service):
Zero Coupon, 1/1/2012 (Insured; AMBAC) 1,000,000 540,260
Zero Coupon, 1/1/2013 (Insured; AMBAC) 1,000,000 507,140
Zero Coupon, 1/1/2015 (Insured; AMBAC) 3,250,000 1,449,630
Zero Coupon, 1/1/2017 (Insured; AMBAC) 5,000,000 1,954,050
Zero Coupon, 1/1/2018 (Insured; AMBAC) 2,500,000 915,125
Zero Coupon, 1/1/2020 (Insured; AMBAC) 6,500,000 2,093,260
Zero Coupon, 1/1/2022 (Insured; AMBAC) 6,000,000 1,709,520
Local or Guaranteed Housing,
First Mortgage (Fellowship Village):
5.50%, 1/1/2018 2,500,000 2,008,775
5.50%, 1/1/2025 3,000,000 2,296,200
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
New Jersey Economic Development Authority, Revenue (continued):
(Morris Hall / Saint Lawrence Inc. Project)
5.50%, 4/1/2027 (LOC; Corestates Bank) 3,500,000 3,278,100
Special Facilities (Continental Airlines
Inc. Project) 6.25%, 9/15/2019 10,000,000 9,183,400
State Lease:
(Bergen County Administration Complex)
4.75%, 11/15/2026 (Insured; MBIA) 10,025,000 8,629,319
(State Office Buildings Project):
6%, 6/15/2014 2,425,000 2,567,469
6%, 6/15/2018 6,535,000 6,862,665
Transportation Project Sublease
5%, 5/1/2018 (Insured; FSA) 4,115,000 3,809,996
Waste Paper Recycling (Marcal Paper Mills Inc. Project):
6.25%, 2/1/2009 6,605,000 6,561,341
8.50%, 2/1/2010 5,850,000 6,331,982
Water Facilities:
(American Water Co. Inc. Project) :
6.50%, 4/1/2022 (Insured; FGIC) 11,500,000 11,811,420
5.25%, 7/1/2038 (Insured; FGIC) 5,315,000 4,804,760
(Elizabeth Water Co. Project) 6.70%, 8/1/2021 3,965,000 4,104,568
New Jersey Educational Facilities Authority, Revenue:
(Institute for Advanced Study) 5%, 7/1/2028 2,310,000 2,070,291
(New Jersey City University)
4.75%, 7/1/2020 (Insured; AMBAC) 1,000,000 881,500
(Saint Peter's College Project):
5.375%, 7/1/2018 1,000,000 901,740
5.50%, 7/1/2027 1,750,000 1,542,713
(Seton Hall University Project):
7%, 7/1/2021 2,320,000 2,422,846
7%, 7/1/2021 (Prerefunded 7/1/2001) 1,180,000 (a) 1,232,309
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 1,384,500
5.50% 7/1/2029 4,750,000 4,249,492
(Catholic Health East) 4.75%, 11/15/2021 2,000,000 1,706,320
(Centrastate Medical Center Obligated Group)
4.50%, 7/1/2028 (Insured: AMBAC) 10,890,000 8,737,374
(Kimball Medical Center)
8%, 7/1/2013 (Prerefunded 7/1/2000) 12,375,000 (a) 12,623,738
(Meridian Health Systems Obligated Group)
5.25%, 7/1/2029 (Insured; FSA) 1,350,000 1,247,251
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
New Jersey Health Care Facilities Financing Authority,
Health, Hospital and Nursing Home Revenue (continued):
(Palisades Medical Center Obligated Group):
7.50%, 7/1/2006 635,000 656,838
7.50%, 7/1/2006 (Prerefunded 7/1/2002) 1,040,000 (a) 1,101,984
5.20%, 7/1/2019 (Insured; ACA) 1,725,000 1,527,108
7.60%, 7/1/2021 950,000 983,278
7.60%, 7/1/2021 (Prerefunded 7/1/2002) 1,400,000 (a) 1,502,676
5.25%, 7/1/2018 (Insured; ACA) 950,000 820,648
(Pascack Valley Hospital Association)
5.125%, 7/1/2028 4,050,000 2,836,134
(Raritan Bay Medical Center) 7.25%, 7/1/2014 11,400,000 10,660,368
(Saint Barnabas Health):
Zero Coupon, 7/1/2023 (Insured; MBIA) 5,000,000 1,273,500
5%, 7/1/2024 (Insured; MBIA) 5,755,000 5,138,524
(Saint Elizabeth Hospital Obligated Group):
6%, 7/1/2014 2,500,000 2,225,950
6%, 7/1/2020 3,000,000 2,590,230
New Jersey Higher Education Assistance Authority, Student
Loan Revenue:
5.30%, 6/1/2017 (Insured; AMBAC) 7,185,000 6,870,010
5.25%, 6/1/2018 (Insured; MBIA) 900,000 854,370
New Jersey Highway Authority, Revenue
(Garden State Parkway) 6%, 1/1/2019 2,000,000 2,110,880
New Jersey Housing and Mortgage Finance Agency, Revenue:
Home Buyer:
5.75%, 4/1/2018 (Insured; MBIA) 1,650,000 1,649,835
5.90%, 10/1/2029 (Insured; MBIA) 4,050,000 4,022,744
Multi-Family Housing:
5.65%, 5/1/2040 (Insured; AMBAC) 1,700,000 1,595,484
(Presidential Plaza at Newport Project)
7%, 5/1/2030 (Insured; FHA) 4,000,000 4,163,440
Rental Housing (Tiffany Manor) 6.75%, 11/1/2022 9,310,000 9,559,601
New Jersey Sports and Exposition Authority:
Convention Center Luxury Revenue
5%, 9/1/2019 (Insured; MBIA) 6,210,000 5,676,126
Recreational Revenue 4.50%, 3/1/2024 550,000 456,379
New Jersey Transit Corp., Lease Purchase Agreement, COP
(Raymond Plaza East Inc.)
6.50%, 10/1/2016 (Insured; FSA) 3,945,000 4,260,245
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
New Jersey Transportation Trust Fund Authority
(Transportation System):
7%, 6/15/2012 (Insured; MBIA) 6,000,000 6,967,140
5.75%, 6/15/2017 6,000,000 6,214,260
5.75%, 6/15/2018 6,000,000 6,186,960
5.75%, 6/15/2020 6,500,000 6,659,445
New Jersey Turnpike Authority, Turnpike Revenue:
6.50%, 1/1/2016 (Insured; MBIA) 14,665,000 16,301,907
5.375%, 1/1/2020 (Insured; MBIA) 4,550,000 4,421,554
North Jersey District Water Supply Commission,
Sewer Revenue (Wanaque South Project)
6%, 7/1/2019 (Insured; MBIA) 2,000,000 2,115,260
Ocean County Pollution Control Financing Authority, PCR
(Ciba Geigy Corp. Project) 6%, 5/1/2020 10,000,000 10,198,300
Port Authority of New York and New Jersey:
Port, Airport, and Marina Improvements Revenue:
(Consolidated Bond 116th Series)
4.25%, 10/1/2026 (Insured; AMBAC) 16,170,000 12,638,310
(Consolidated Bond 119th Series)
5.50%, 9/15/2016 (Insured; FGIC) 4,650,000 4,627,401
Special Obligation Revenue:
(U.S. Air LaGuardia Project) 9.125%, 12/1/2015 6,500,000 6,714,565
(JFK International Air Terminal):
6.25%, 12/1/2015 (Insured; MBIA) 5,000,000 5,437,950
5.75%, 12/1/2022 (Insured; MBIA) 12,870,000 12,813,115
South Jersey Transportation Authority, Revenue,
Port, Airport and Marina Lease (Raytheon
Aircraft Service Inc. Project) 6.15%, 1/1/2022 405,000 368,064
Union County Utilities Authority, Solid Waste Revenue
(Ogden Martin):
5.375%, 6/1/2019 (Insured; AMBAC) 2,300,000 2,189,761
5.375%, 6/1/2020 (Insured; AMBAC) 2,540,000 2,409,038
Western Monmouth Utilities Authority, Sewer Revenue
5.60%, 2/1/2014 (Insured; AMBAC) 2,190,000 2,225,412
West New York Municipal Utilities Authority,
Sewer Revenue 7.30%, 12/15/2017
(Prerefunded 12/15/2000) (Insured; FGIC) 6,250,000 (a) 6,457,500
U.S. RELATED--8.8%
Guam Power Authority 5%, 10/1/2024 1,240,000 1,116,806
Commonwealth of Puerto Rico
5.65%, 7/1/2015 (Insured; MBIA) 2,000,000 2,091,880
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. RELATED (CONTINUED)
Puerto Rico Highway and Transportation Authority,
Highway Revenue:
5.305%, 7/1/2007 11,100,000 (b) 11,544,000
6.592%, 7/1/2009 2,950,000 (b) 3,049,563
6.625%, 7/1/2018 (Prerefunded 7/1/2002) 13,000,000 (a) 13,759,590
5%, 7/1/2036 8,000,000 6,951,360
Puerto Rico Public Buildings Authority, Revenue
5.25%, 7/1/2021 (Insured; FSA) 2,130,000 2,037,345
Virgin Islands Public Finance Authority, Revenues,
Gross Receipts Taxes Loan Note:
6.375%, 10/1/2019 2,000,000 2,016,520
6.50%, 10/1/2024 2,000,000 2,029,240
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $477,122,406) 480,153,694
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL INVESTMENTS--4.3%
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY--2.7%
Port Authority of New York and New Jersey
Special Obligation Revenue, VRDN:
4.35% (SBPA; Morgan Guaranty Trust Co.) 4,000,000 (d) 4,000,000
4.45% (SBPA; Bank of Nova Scotia) 2,000,000 (d) 2,000,000
4.45% (SBPA; Landesbank Hessen-Thurgen) 1,200,000 (d) 1,200,000
4.50% (SBPA; Bayerische Landesbank) 6,350,000 (d) 6,350,000
U.S. RELATED--1.6%
Puerto Rico Highway and Transportation Authority,
Transportation Revenue, VRDN
4.25% (SBPA; Bank of Nova Scotia) 8,000,000 (d) 8,000,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $21,550,000) 21,550,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost $498,672,406) 99.4% 501,703,694
CASH AND RECEIVABLES (NET) .6% 3,000,249
NET ASSETS 100.0% 504,703,943
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Summary of Abbreviations
ACA American Capital Access
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
FGIC Financial Guaranty Insurance
Company
FHA Federal Housing Administration
FNMA Federal National Mortgage
Association
FSA Financial Security Assurance
LOC Letter of Credit
MBIA Municipal Bond Investors
Assurance Insurance
Corporation
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SBPA Standby Bond Purchase
Agreement
VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 58.6
AA Aa AA 7.8
A A A 12.1
BBB Baa BBB 7.3
BB Ba BB 3.2
F1 Mig1 SP1 4.3
Not Rated(e) Not Rated(e) Not Rated(e) 6.7
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, 2000, THIS SECURITY
AMOUNTED TO $15,184,189 OR 3.0% OF NET ASSETS.
(D) SECURITIES PAYABLE ON DEMAND. VARIABLE RATE INTEREST--SUBJECT TO PERIODIC
CHANGE.
(E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S,
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 498,672,406 501,703,694
Interest receivable 9,606,627
Receivable for investment securities sold 982,890
Prepaid expenses 6,134
512,299,345
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 356,254
Cash overdraft due to Custodian 2,985,513
Payable for investment securities purchased 4,060,156
Payable for shares of Common Stock redeemed 118,912
Accrued expenses 74,567
7,595,402
--------------------------------------------------------------------------------
NET ASSETS ($) 504,703,943
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 508,097,933
Accumulated net realized gain (loss) on investments (6,425,278)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 3,031,288
--------------------------------------------------------------------------------
NET ASSETS ($) 504,703,943
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(500 million shares of $.001 par value Common Stock authorized) 40,916,337
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 12.34
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 15,504,978
EXPENSES:
Management fee--Note 3(a) 1,514,731
Shareholder servicing costs--Note 3(b) 768,520
Custodian fees 26,346
Professional fees 23,576
Directors' fees and expenses--Note 3(c) 19,804
Prospectus and shareholders' reports--Note 3(b) 13,278
Registration fees 4,619
Loan commitment fees--Note 2 4,551
Miscellaneous 14,546
TOTAL EXPENSES 2,389,971
Less--reduction in management fee due to
undertaking--Note 3(a) (239,550)
NET EXPENSES 2,150,421
INVESTMENT INCOME--NET 13,354,557
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (1,703,428)
Net unrealized appreciation (depreciation) on investments 9,105,837
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 7,402,409
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 20,756,966
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 2000 Year Ended
(Unaudited) December 31, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 13,354,557 28,605,859
Net realized gain (loss) on investments (1,703,428) (4,627,594)
Net unrealized appreciation (depreciation)
on investments 9,105,837 (48,653,360)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 20,756,966 (24,675,095)
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (13,354,557) ( 28,605,859)
Net realized gain on investments -- (1,652,869)
TOTAL DIVIDENDS (13,354,557) (30,258,728)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 20,649,975 69,052,804
Dividends reinvested 9,540,319 22,112,337
Cost of shares redeemed (59,267,401) (116,240,542)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (29,077,107) (25,075,401)
TOTAL INCREASE (DECREASE) IN NET ASSETS (21,674,698) (80,009,224)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 526,378,641 606,387,865
END OF PERIOD 504,703,943 526,378,641
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,697,622 5,305,991
Shares issued for dividends reinvested 783,478 1,724,972
Shares redeemed (4,876,398) (9,059,009)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,395,298) (2,028,046)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund 's financial
statements.
<TABLE>
Six Months Ended Year Ended December 31,
June 30, 2000 ------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 12.15 13.37 13.35 13.00 13.53 12.41
Investment Operations:
Investment income--net .32 .64 .65 .68 .72 .74
Net realized and unrealized
gain (loss) on investments .19 (1.18) .11 .44 (.30) 1.12
Total from Investment Operations .51 (.54) .76 1.12 .42 1.86
Distributions:
Dividends from investment
income--net (.32) (.64) (.65) (.68) (.72) (.74)
Dividends from net realized gain
on investments -- (.04) (.09) (.09) (.23) (.00)(a)
Total Distributions (.32) (.68) (.74) (.77) (.95) (.74)
Net asset value, end of period 12.34 12.15 13.37 13.35 13.00 13.53
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 8.54(b) (4.24) 5.82 8.84 3.43 15.29
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .85(b) .89 .90 .80 .80 .80
Ratio of net investment income
to average net assets 5.28(b) 4.94 4.86 5.23 5.46 5.67
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation .09(b) .05 .04 .14 .14 .15
Portfolio Turnover Rate 12.27(c) 37.02 36.69 28.01 31.30 24.37
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 504,704 526,379 606,388 596,218 593,949 653,836
(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 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, 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, which are sold to the public without a
sales charge. 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 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.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(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 received net earnings credits of $13,319 during the period
ended June 30, 2000 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
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, 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 $3,113,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1999. 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, the carryover expires in fiscal 2007.
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 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 June
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 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 Manager has undertaken, until such
time as it gives shareholders at least 90 days' notice to the contrary, to
reduce the management fee paid by the fund, to the extent that the fund's
aggregate expense, exclusive of taxes, brokerage fees, interest on borrowings,
commitment fees and extraordinary expenses, exceed an annual rate of .85 of 1%
of the value of the fund's average daily net assets. The reduction in management
fee, pursuant to the undertaking, amounted to $239,550 during the period ended
June 30, 2000.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(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,
servicing shareholder accounts and for advertising and marketing relating to the
fund. The Plan provides for payments to be made at an annual aggregate rate of
. 25 of 1% of the value of the fund's average daily net assets. Prior to March
22, 2000, Premier Mutual Fund Service, Inc., and not DSC, received payments
under the Plan for distributing fund shares and for servicing shareholders
accounts. 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 value of the
fund's average daily net assets for any full fiscal year. During the period
ended June 30, 2000, the fund was charged $633,553 pursuant to the Plan, of
which $616,494 was paid to DSC.
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, 2000, the fund was charged $87,390 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 April 11, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $30,000 and an attendance fee of $4,000 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 April 11, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the fund
an annual fee of $2,500 and an attendance fee of $250 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 1% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege. During the period ended June
30, 2000, redemption fees charged and retained by the fund amounted to $1,185.
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 June 30, 2000, amounted to
$59,222,298 and $86,688,839, respectively.
At June 30, 2000, accumulated net unrealized appreciation on investments was
$3,031,288, consisting of $14,789,643 gross unrealized appreciation and
$11,758,355 gross unrealized depreciation.
At June 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 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
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 750SA006
