COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS CALIFORNIA
INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
[Exhibit A]
Past performance is not predictive of future performance.
The above illustration compares a $10,000 investment made in the
Dreyfus California Intermediate Municipal Bond Fund on 4/20/92
(Inception Date) to a $10,000 investment made in the Lehman Brothers 10-
Year Municipal Bond Index on that date. For comparative purposes, the
value of the Index on 4/30/92 is used as the beginning value on 4/20/92.
All dividends and capital gain distributions are reinvested.
The Fund invests primarily in California municipal securities and has a
portfolio with a weighted-average maturity of between 3 and 10 years.
The Fund's performance takes into account fees and expenses. Unlike the
Fund, the Lehman Brothers 10-Year Municipal Bond Index is an unmanaged
total return performance benchmark for the investment-grade 10-year tax
exempt bond market, consisting of municipal bonds with maturities of
more than 8 years and less than 12 years. The Index does not take into
account charges, fees and other expenses. Further information relating to
Fund performance, including expense reimbursements, if applicable, is
contained in the Condensed Financial Information section of the
Prospectus and elsewhere in this report.
* Source: Lehman Brothers
PRESIDENT'S LETTER
Dear Shareholder:
As your Fund ended its annual reporting period on March 31, 1994, its
net asset value was $13.08 per share. Income dividends of approximately
$.72 per share were paid during this period, representing a distribution
rate per share of 5.52%, based on the March 31, 1994 net asset value,
adjusted for capital gain distributions.* In addition, we are pleased to
report that all dividends paid from net investment income during this
period were exempt from Federal and State of California personal income
taxes, although certain shareholders may be subject to the Federal
Alternative Minimum Tax on some portfolio income.
As the reporting period began, the U.S. economy continued to exhibit
signs of weakness. In addition, the rate of inflation remained quite low
which encouraged a continuation of the strong market in fixed-income
securities. In this environment, the prices for fixed-income securities
rose to levels not seen in many years as interest rates declined. However,
as the reporting period ended, signs of solid economic growth had emerged
and, with that, bond prices weakened.
The bond market weakness was a direct result of the fear of rising
inflation as rapid economic growth was recorded in the second half of
1993 and the first quarter of 1994. The impressive increase in Gross
Domestic Product in the first quarter of 1994 came despite extremely bad
weather and the earthquake in southern California. It had been anticipated
that the bad weather throughout much of the nation, and the earthquake's
impact on a major economic center, would have a significantly negative
impact on overall U.S. economic growth. However, economic growth
continued quite strong.
As the economy continued to improve in the fourth quarter of 1993 and
into the first quarter of 1994, fears of rising inflation intensified. It
became clear to market participants that the economy had, over the past
year, moved from recession to rapid expansion. Supporting this view were
increases in several key economic indicators such as capacity utilization,
retail sales, consumer confidence, commodity prices and new orders for
durable goods, just to name a few.
Reaction by the Federal Reserve Board to this rapid economic growth
and its perceived threat to price stability was swift, with two quarter-
point increases in the Federal Funds rate in the first quarter of 1994. The
bond market's negative reaction to these increases was dramatic,
resulting in substantial price declines by the end of this reporting period.
There are many economists who believe that the economy will return to
anemic performance in the second half of 1994, thereby relieving
inflationary pressures. Recent statements by officials of the Federal
Reserve Board have suggested that the Fed will again raise rates if
economic growth continues strong and threatens inflation in the second
quarter of 1994. It is widely understood that Federal Reserve officials are
intent on not giving up gains made against inflation over the past several
years. Near term, this policy will continue to create an uncertain and
volatile bond market. Longer term, however, this should bode well for the
value of long-term securities as inflationary pressures subside.
Your portfolio performed well over the past year relative to this
volatile rate environment, and we are working to manage your portfolio
for another good year ahead. In the coming year, we think it realistic to
anticipate greater market volatility and continued periods of market
discomfort as inflationary pressures rise with economic growth. Our
strategy in this environment has been, and will continue to be, to maintain
strong credit quality in your Fund. In addition, we will take action to
shorten the average maturity of the Fund, and sell certain securities
deemed most vulnerable to rising inflation. This should help further to
lessen the Fund's vulnerability to such dramatic price swings as occurred
in the first quarter of 1994.
We have reviewed the securities in your portfolio to ascertain if any
damage occurred to credit quality as a result of the earthquake in
southern California. We believe that the Fund did not experience any
detriment to credit quality due to this event. It will take many months for
the full impact of the earthquake on the region, both structurally and
economically, to be known. We will continue to carefully monitor these
events as they unfold and adjust the portfolio accordingly.
The municipal market is in a strong position as we enter 1994 due to
the expectation of a substantially reduced new-issue supply just as tax
rates have risen. In addition, we believe that the Federal Reserve's
vigilance in fighting inflation will benefit all fixed-income instruments
in the coming year.
We have included a current Statement of Investments and recent
financial statements for your review. We greatly appreciate your
investment in the Fund and look forward to serving your investment needs
in the future.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
President
April 15, 1994
New York, N.Y.
* Capital gains, if any, are generally subject to Federal, State and local
taxes.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS-100.0% AMOUNT VALUE
------------ ------------
<S> <C> <C>
CALIFORNIA-91.9%
Alameda County, COP (Capital Projects) 6%, 6/1/2000.......................................... $ 500,000 $ 505,590
State of California, GO:
6%, 9/1/2001............................................................................. 2,000,000 2,094,800
6.20%, 9/1/2002.......................................................................... 500,000 529,860
6.40%, 2/1/2006 (Insured; MBIA).......................................................... 5,000,000 5,302,150
California Department of Water Resources, Water Systems Revenue
(Central Valley Project) 5.90%, 12/1/2005................................................ 1,175,000 1,210,885
California Health Facilities Financing Authority, Revenue:
(Adventist Health System / West) 6.40%, 3/1/2002 (Insured; MBIA)......................... 500,000 537,830
(Catholic Healthcare West):
4.50%, 7/1/2002...................................................................... 2,500,000 2,316,175
4.70%, 7/1/2003...................................................................... 2,500,000 2,327,075
(Downey Community College):
5.00%, 5/15/2001..................................................................... 2,250,000 2,154,465
5.10%, 5/15/2002..................................................................... 2,500,000 2,383,675
5.20%, 5/15/2003..................................................................... 2,500,000 2,369,650
(Marin General Hospital):
5.50%, 8/1/2001 (Insured; FSA)....................................................... 1,580,000 1,609,435
5.60%, 8/1/2002 (Insured; FSA)....................................................... 1,670,000 1,704,385
5.70%, 8/1/2003 (Insured; FSA)....................................................... 1,760,000 1,799,459
Refunding (Saint Francis Memorial Hospital) 5.75%, 11/1/2003............................. 1,130,000 1,121,728
California Housing Finance Agency, Revenue (Multi-Unit Rental Housing)
6.50%, 8/1/2005.......................................................................... 500,000 507,455
California Pollution Control Financing Authority, Revenue:
Pollution Control (Laidlaw, Inc.) 6.50%, 5/1/2002 (LOC; Bank of America) (a)............. 1,500,000 1,533,660
Solid Waste Disposal (North County Recycling Center)
6.20%, 7/1/2002 (LOC; Union Bank of Switzerland) (a)................................. 2,000,000 2,140,900
California Public Capital Improvements Financing Authority, Revenue
(Joint Powers Agency-Pooled Projects) 8.25%, 3/1/1998.................................... 360,000 383,875
California Public Works Board, LR:
(Community Colleges) 5.90%, 9/1/1998..................................................... 1,975,000 2,024,908
(Department of Corrections-Calipatria) 6.10%, 9/1/2003 (Insured; MBIA)................... 1,000,000 1,057,130
Refunding:
(Department of Corrections Del Norte):
4.50%, 12/1/2001................................................................. 12,845,000 11,965,503
4.75%, 12/1/2005................................................................. 4,200,000 3,780,000
(Department of Corrections State Prisons):
5%, 12/1/2001.................................................................... 5,000,000 4,772,700
5.25%, 12/1/2005................................................................. 6,800,000 6,603,208
(Susanville) 5%, 6/1/2005........................................................ 3,000,000 2,739,840
(Various University of California Projects) 5.10%, 6/1/2004.......................... 3,070,000 2,857,280
(Secretary of State) 6.10%, 12/1/2004 (Insured; AMBAC)................................... 6,100,000 6,391,824
(Various University of California Projects ) 5.90%, 12/1/2003 (Insured; AMBAC)........... 1,000,000 1,031,860
California Statewide Community Development Authority, LR
(Oakland Convention Centers Project) 6%, 10/1/2004 (Insured; AMBAC)...................... 2,700,000 2,791,341
Central Coast Water Authority, Revenue (Water Project)
6.15%, 10/1/2005 (Insured; AMBAC)........................................................ 2,000,000 2,082,400
Central Valley Financing Authority, Cogeneration Project Revenue
(Carson Ice General Project) 5.70%, 7/1/2003............................................. 2,000,000 1,977,360
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
CALIFORNIA (CONTINUED)
Clovis Unified School District:
Capital Appreciation, Zero Coupon, 8/1/2002.............................................. $ 5,500,000 $ 3,457,135
Refunding 4.70%, 8/1/1997................................................................ 3,000,000 3,008,070
Contra Costa County, COP (Merrithew Memorial Hospital Replacement)
6.20%, 11/1/2001......................................................................... 1,145,000 1,186,907
Daly City, COP, Refunding:
5.30%, 6/1/2001 (Insured; MBIA).......................................................... 1,170,000 1,177,523
5.30%, 6/1/2002 (Insured; MBIA).......................................................... 1,230,000 1,230,701
Desert Sands, Unified School District, COP 4.75%, 3/1/2001................................... 7,030,000 6,652,278
East Bay Municipal Utility District, Water Systems Revenue, Refunding:
6%, 6/1/2004............................................................................. 1,365,000 1,409,963
6%, 6/1/2005............................................................................. 560,000 576,038
6.10%, 6/1/2006.......................................................................... 2,000,000 2,059,340
Encinitas Union School District, COP (Measure B Capital Projects):
4.875%, 9/1/2000......................................................................... 1,000,000 970,740
5%, 9/1/2001............................................................................. 1,000,000 968,650
Escondido Joint Powers Financing Authority, LR (Escondido Civic Center Project)
6%, 9/1/2005 (Insured; AMBAC)............................................................ 1,400,000 1,453,956
Fairfield Public Financing Authority, Revenue
(Fairfield Redevelopment Projects):
4.70%, 8/1/2002 (Insured; Capital Guaranty).......................................... 1,525,000 1,439,326
4.80%, 8/1/2003 (Insured; Capital Guaranty).......................................... 1,910,000 1,796,641
Fontana Redevelopment Agency, Tax Allocation, Refunding
(Jurupa Hills Redevelopment Project) 6.90%, 10/1/2002.................................... 435,000 452,622
Garden Grove Agency, Community Development, Tax Allocation, Refunding
(Garden Grove Community Project):
5.20%, 10/1/2001..................................................................... 1,225,000 1,192,783
5.30%, 10/1/2002..................................................................... 1,285,000 1,247,632
Industry Urban Development Agency, Tax Allocation, Refunding
(Civic Recreation Project No. 1) 5.40%, 5/1/2002 (Insured; MBIA)......................... 2,500,000 2,517,775
Long Beach, COP (Fleet Services Project) 6.10%, 5/1/2001..................................... 500,000 525,745
Long Beach Harbor, Revenue:
4.50%, 5/15/2001......................................................................... 5,000,000 4,728,050
4.50%, 5/15/2002......................................................................... 5,240,000 4,880,588
City of Los Angeles:
5.25%, 9/1/2007.......................................................................... 5,165,000 4,916,202
(Judgment Obligation):
5%, 8/1/2001......................................................................... 4,400,000 4,349,224
5%, 8/1/2002......................................................................... 3,000,000 2,941,740
Revenue:
Home Mortgage 9.875%, 12/1/2004...................................................... 165,000 169,971
Mortgage, Refunding:
5.75%, 7/1/2002 (Insured; MBIA).................................................. 1,000,000 1,003,800
5%, 1/1/2005 (Insured; MBIA)..................................................... 1,025,000 977,317
Wastewater System:
5.90%, 6/1/2003 (Insured; AMBAC)................................................. 1,000,000 1,036,420
6%, 6/1/2004 (Insured; AMBAC).................................................... 1,000,000 1,038,450
Los Angeles Convention and Exhibition Center Authority, LR, Refunding
4.90%, 8/15/2005 (Insured; MBIA)......................................................... 2,190,000 2,044,694
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
CALIFORNIA (CONTINUED)
Los Angeles County Capital Asset Leasing Corporation, Leasehold Revenue, Refunding
5.75%, 12/1/2004 (Insured; AMBAC)........................................................ $ 2,600,000 $ 2,685,618
Los Angeles County, COP:
(Disney Parking Project) Zero Coupon, 9/1/2006........................................... 4,120,000 1,861,910
(Edmund D. Edelman Children's Court):
5.80%, 4/1/2001 (Insured; AMBAC)..................................................... 500,000 517,415
6%, 4/1/2003 (Insured; AMBAC)........................................................ 500,000 518,635
(Hospital Information System-LAC-USU Medical Center) 5.90%, 12/1/1997.................... 400,000 411,940
(Marina Del Ray) 5.50%, 7/1/1997......................................................... 5,155,000 5,261,863
(Multiple Capital Facilities Project II) 7%, 3/1/2003.................................... 1,000,000 1,064,810
Los Angeles County Transportation Commission:
COP 5%, 7/1/1996......................................................................... 1,500,000 1,523,790
Sales Tax Revenue, Refunding:
5.75%, 7/1/2001 (Insured; FGIC)...................................................... 1,250,000 1,290,963
6%, 7/1/2004 (Insured; FGIC)......................................................... 2,000,000 2,077,340
Martinez Unified School District, Refunding:
5.25%, 8/1/2001.......................................................................... 1,030,000 1,021,894
5.50%, 8/1/2003.......................................................................... 1,170,000 1,165,683
5.75%, 8/1/2004.......................................................................... 1,240,000 1,251,309
Mojave Water Agency (Improvement District M-Morongo Basin):
5.875%, 9/1/1999......................................................................... 690,000 697,245
6%, 9/1/2000 730,000 739,110
New Haven Unified School District, COP, Refunding 5.15%, 7/1/2000............................ 4,090,000 4,042,106
Northern California Power Agency, Public Power Revenue, Refunding:
(Geothermal Project) 5.50%, 7/1/2005
(GIC: Bayerische Landesbank and Sanwa Bank).......................................... 5,000,000 4,933,600
(Hydroelectric Power Project):
5.75%, 7/1/2001 (Insured; MBIA)...................................................... 1,210,000 1,249,652
5.80%, 7/1/2002 (Insured; MBIA)...................................................... 570,000 589,175
Oakland Redevelopment Agency, Refunding
(Central District Redevelopment-Senior Tax Allocation):
5.65%, 2/1/2003 (Insured; AMBAC)..................................................... 1,500,000 1,542,915
5.75%, 2/1/2004 (Insured; AMBAC)..................................................... 1,500,000 1,546,440
Pasadena, COP, Refunding (Capital Project):
5.90%, 1/1/2002.......................................................................... 250,000 251,670
6%, 1/1/2003............................................................................. 400,000 403,744
Port Oakland, Revenue:
Port:
5.50%, 11/1/1999 (Insured; MBIA)..................................................... 1,000,000 1,023,070
6.10%, 11/1/2003 (Insured; MBIA)..................................................... 1,245,000 1,308,507
Special Facilities (Mitsui O.S.K. Lines Ltd.)
6.40%, 1/1/2003 (LOC; Industrial Bank of Japan) (a).................................. 1,000,000 1,028,170
Riverside County:
Asset Leasing Corp., Leasehold Revenue (Riverside County Hospital Project)
5.90%, 6/1/2002...................................................................... 3,000,000 3,003,540
Housing Authority, MFHR, Refunding (El Dorado Apartments Project)
5.40%, 6/1/2003...................................................................... 7,600,000 7,481,592
Transportation Commission, Sales Tax Revenue:
5.30%, 6/1/2002 (Insured; AMBAC)..................................................... 2,500,000 2,526,200
5.40%, 6/1/2003 (Insured; AMBAC)..................................................... 4,000,000 4,045,800
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
CALIFORNIA (CONTINUED)
Sacramento County, MFHR (Parcwood Apartments) 4.90%, 9/1/1997................................ $ 2,000,000 $ 2,011,200
Sacramento Municipal Utility District, Electric Revenue (Registered Inflos)
7.52%, 11/15/2005 (b).................................................................... 10,000,000 9,237,500
San Bernardino County, COP (West Valley Detention Center)
5.90%, 11/1/2001 (Insured; MBIA)......................................................... 1,000,000 1,043,350
San Diego, Port Facilities Revenue, Refunding (National Steel and Shipbuilding Co.)
6.60%, 12/1/2002......................................................................... 1,500,000 1,517,805
San Diego County Water Authority, Water Revenue, COP, Refunding:
5.30%, 5/1/2002 (Insured; FGIC).......................................................... 3,000,000 3,013,530
5.40%, 5/1/2003 (Insured; FGIC).......................................................... 2,000,000 2,009,860
San Francisco Bay Area Rapid Transit District, Sales Tax Revenue, Subordinated Notes
4.60%, 7/1/1997 (Insured; AMBAC)......................................................... 2,000,000 2,006,220
San Francisco City and County, Sewer Revenue, Refunding
5.60%, 10/1/2003 (Insured; AMBAC)........................................................ 3,000,000 3,062,010
San Francisco City and County Airports Commission, International Airport Revenue,
Refunding 6.20%, 5/1/2004................................................................ 500,000 529,960
San Francisco Unified School District, COP, Refunding 5.70%, 9/1/2003 (Insured; MBIA)........ 1,000,000 1,020,700
San Joaquin County, COP (General Hospital Project):
5.70%, 9/1/2001.......................................................................... 2,250,000 2,225,790
5.80%, 9/1/2002.......................................................................... 2,250,000 2,221,920
San Jose, MFHR 8.334%, 4/1/2002 (b).......................................................... 6,000,000 6,000,000
San Jose Redevelopment Agency, Tax Allocation, Refunding
(Merged Redevelopment Project) 4.60%, 8/1/2001 (Insured; MBIA)........................... 3,500,000 3,330,005
City of Santa Cruz, COP, Refunding (1992 Refunding Project):
5.875%, 5/1/1998......................................................................... 500,000 513,360
6%, 5/1/1999............................................................................. 500,000 512,335
Santa Maria Redevelopment Agency, Revenue, Refunding
(Town Center and West Side Parking Facilities) 4.625%, 6/1/2001 (Insured; FSA)........... 2,665,000 2,535,801
Sierra View Local Hospital District, Health Facility Revenue:
5.80%, 3/1/2002 (Guaranteed by; State of California)..................................... 500,000 501,970
5.90%, 3/1/2003 (Guaranteed by; State of California)..................................... 755,000 757,114
Southern California Public Power Authority, Transmission Project Revenue, Refunding
(Southern Transmission Project) 5.625%, 7/1/2003......................................... 1,800,000 1,827,702
Southern California Rapid Transit District, Revenue
(Special Benefit Assessment District No. A1) 5.60%, 9/1/2003 (Insured; AMBAC)............ 3,000,000 3,061,410
University of California, Revenues, Refunding (Multiple Purpose Projects):
5%, 9/1/2006 (Insured; AMBAC)............................................................ 5,000,000 4,687,050
4.80%, 9/1/2007 (Insured; AMBAC)......................................................... 10,000,000 9,076,000
Watsonville Mammoth Lakes, COP 7.50%, 6/1/1999............................................... 65,000 65,098
U.S. RELATED-8.1%
Commonwealth of Puerto Rico:
5.40%, 7/1/2003.......................................................................... 3,000,000 2,955,870
Refunding, Improvement 5.10%, 7/1/2002................................................... 2,000,000 1,947,160
Commonwealth of Puerto Rico Highway and Transportation Authority,
Highway Revenue, Refunding 5.875%, 7/1/1999.............................................. 1,500,000 1,543,365
Guam Airport Authority, Revenue 5.80%, 10/1/1999............................................. 1,705,000 1,710,729
Puerto Rico Housing Bank and Finance Agency, Single Family, Refunding,
(Commonwealth Appreciation) 5.125%, 12/1/2004............................................ 6,000,000 5,677,380
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
U.S. RELATED (CONTINUED)
Puerto Rico Public Buildings Authority,Guaranteed Public Education and Health Facilities:
6.60%, 7/1/2004 (Prerefunded 7/1/2002) (c)............................................... $ 500,000 $ 552,395
5.30%, 7/1/2003.......................................................................... 7,000,000 6,822,480
Refunding, Zero Coupon, Series I, 7/1/2005............................................... 750,000 383,573
Virgin Islands Public Finance Authority, Revenue, Refunding 6.60%, 10/1/1998................. 1,530,000 1,583,213
------------
TOTAL INVESTMENTS (cost $291,970,356)........................................................ $287,028,248
============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation GO General Obligation
COP Certificate of Participation LOC Letter of Credit
FGIC Financial Guaranty Insurance Corporation LR Lease Revenue
FSA Financial Security Assurance MBIA Municipal Bond Insurance Association
GIC Guaranteed Investment Contract MFHR Multi-Family Housing Revenue
</TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- - ------- ------- ----------------- -------------------
AAA Aaa AAA 46.2%
AA Aa AA 14.1
A A A 32.0
BBB Baa BBB 4.6
F1 P1 A1 .7
Not Rated Not Rated Not Rated 2.4
------
100.0%
======
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Inverse floater security-the interest rate is subject to change
periodically.
(c) 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 tax-exempt issue and to retire the bonds in full at the
earliest refunding date.
(d) Fitch currently provides creditworthiness information for a limited
amount of investments.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1994
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $291,970,356)-see statement.................................................... $287,028,248
Receivable for investment securities sold................................................ 8,079,257
Interest receivable...................................................................... 4,572,073
Prepaid expenses......................................................................... 34,655
Due from The Dreyfus Corporation......................................................... 442,094
------------
300,156,327
LIABILITIES: ============
Due to custodian......................................................................... $ 4,885,958
Payable for shares of Beneficial Interest redeemed....................................... 1,766,507
Accrued expenses and other liabilities................................................... 140,487 6,792,952
------------ ------------
NET ASSETS................................................................................... $293,363,375
------------
REPRESENTED BY:
Paid-in capital.......................................................................... $298,332,989
Accumulated net realized (loss) on investments-Note 1(c)................................. (27,506)
Accumulated net unrealized (depreciation) on investments-Note 3.......................... (4,942,108)
------------
NET ASSETS at value applicable to 22,429,872 outstanding shares of
Beneficial Interest (unlimited number of $.001 par value shares
authorized).............................................................................. $293,363,375
============
NET ASSET VALUE, offering and redemption price per share
($293,363,375 / 22,429,872 shares)....................................................... $13.08
======
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1994
INVESTMENT INCOME:
INTEREST INCOME.......................................................................... $ 13,591,932
EXPENSES:
Management fee-Note 2(a)............................................................. $1,540,286
Shareholder servicing costs-Note 2(b)................................................ 400,258
Registration fees.................................................................... 48,623
Custodian fees....................................................................... 25,282
Legal fees........................................................................... 17,507
Prospectus and shareholders' reports................................................. 17,239
Auditing fees........................................................................ 14,192
Trustees' fees and expenses-Note 2(c)................................................ 13,898
Organization expenses................................................................ 9,351
Miscellaneous........................................................................ 23,743
----------
2,110,379
Less-expense reimbursement from Manager due to undertakings-Note 2(a)................ 2,004,820
----------
TOTAL EXPENSES............................................................... 105,559
------------
INVESTMENT INCOME-NET 13,486,373
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3................................................ $ (18,793)
Net unrealized (depreciation) on investments............................................. (9,616,969)
----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............................ (9,635,762)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS......................................... $ 3,850,611
============
See notes to financial statements.
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
----------------------------
1993* 1994
------------ ------------
OPERATIONS:
Investment income-net.................................................................... $ 4,292,114 $ 13,486,373
Net realized (loss) on investments....................................................... (2,399) (18,793)
Net unrealized appreciation (depreciation) on investments for the year................... 4,674,861 (9,616,969)
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................. 8,964,576 3,850,611
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................................... (4,292,114) (13,486,373)
Excess net realized gain on investments.................................................. __ (6,314)
------------ ------------
TOTAL DIVIDENDS...................................................................... (4,292,114) (13,492,687)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold............................................................ 244,142,109 282,941,979
Dividends reinvested..................................................................... 3,376,795 10,372,642
Cost of shares redeemed.................................................................. (91,575,778) (151,024,758)
------------ ------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS......................... 155,943,126 142,289,863
------------ ------------
TOTAL INCREASE IN NET ASSETS..................................................... 160,615,588 132,647,787
NET ASSETS:
Beginning of year........................................................................ 100,000 160,715,588
------------ ------------
End of year.............................................................................. $160,715,588 $293,363,375
============ ============
SHARES SHARES
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.............................................................................. 18,859,214 20,646,813
Shares issued for dividends reinvested................................................... 259,353 758,642
Shares redeemed.......................................................................... (7,060,069) (11,042,081)
------------ ------------
NET INCREASE IN SHARES OUTSTANDING................................................... 12,058,498 10,363,374
============ ============
- - ---------------------
* From April 20, 1992 (commencement of operations) to March 31, 1993.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of Beneficial Interest outstanding,
total investment return, from information provided in the Fund's financial statements.
YEAR ENDED MARCH 31,
---------------------
PER SHARE DATA: 1993(1) 1994
------ ------
<S> <C> <C>
Net asset value, beginning of year......................................... $12.50 $13.32
.......................
------ ------
INVESTMENT OPERATIONS:
INVESTMENT INCOME-NET...................................................... .70 .72
Net realized and unrealized gain (loss) on investments..................... .82 (.24)
------ ------
TOTAL FROM INVESTMENT OPERATIONS....................................... 1.52 .48
------ ------
DISTRIBUTIONS:
Dividends from investment income-net....................................... (.70) (.72)
Dividends from excess net realized gain on investments..................... -- --
------ ------
TOTAL DISTRIBUTIONS.................................................... (.70) (.72)
------ ------
Net asset value, end of year............................................... $13.32 $13.08
====== ======
TOTAL INVESTMENT RETURN 13.20%(2) 3.52%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................................... -- .04%
Ratio of net investment income to average net assets....................... 5.61%(2) 5.25%
Decrease reflected in above expense ratios due to undertakings
by the Manager......................................................... .99%(2) .78%
Portfolio Turnover Rate.................................................... 6.74%(3) 6.32%
Net Assets, end of year (000's Omitted).................................... $160,716 $293,363
- - -----------------------
(1) From April 20, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
See notes to financial statements.
</TABLE>
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a non-diversified open-end management investment company.
Dreyfus Service Corporation ("Distributor") acts as the exclusive
distributor of the Fund's shares, which are sold to the public without a
sales charge. The Distributor is a wholly-owned subsidiary of The Dreyfus
Corporation ("Manager").
(A) PORTFOLIO VALUATION: The Fund's investments are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices in the
judgment of the Service are readily available and are representative of
the bid side of the market 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, when
appropriate, 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.
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 daily from investment income-net. Such dividends are paid
monthly. Dividends from net realized capital gain, if any, are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the
Internal Revenue Code. 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.
Dividends in excess of net realized gains on investment for financial
statement purposes result primarily from losses from securities
transactions during the year ended March 31, 1994 which are treated for
Federal income tax purposes as arising in Fiscal 1995.
(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 provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from all, or substantially all, Federal income
taxes.
NOTE 2-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 average daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund for any full
fiscal year. The most stringent state expense limitation applicable to the
Fund presently requires reimbursement of expenses in any full fiscal year
that such expenses (excluding certain expenses as described above) exceed
2 1/2% of the
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
first $30 million, 2% of the next $70 million and 1 1/2% of the excess
over $100 million of the average value of the Fund's net assets in
accordance with California "blue sky" regulations. However, the Manager
had undertaken, from April 1, 1993 through January 11, 1994, to
reimburse all fees and expenses of the Fund and thereafter, had undertaken
through April 7, 1994 to reduce the management fee paid by the Fund, to
the extent that the Fund's aggregate expenses (excluding certain expenses
as described above) exceeded specified annual percentages of the Fund's
average daily net assets. The expense reimbursement, pursuant to the
undertakings, amounted to $2,004,820 for the year ended March 31, 1994.
The Manager has currently undertaken from April 8, 1994 through May
31, 1994 or until such time as the net assets of the Fund exceed $375
million, regardless of whether they remain at that level, whichever occurs
sooner, to waive receipt of the management fee payable to it by the Fund
in excess of an annual rate of .05 of 1% of the average daily value of the
Funds' net assets.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses the Distributor an amount not to exceed an annual rate of .25
of 1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. During the
year ended March 31, 1994, the Fund was charged an aggregate of
$223,069 pursuant to the Shareholder Service Plan.
(C) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each trustee
who is not an "affiliated person," receives an annual fee of $1,500 and an
attendance fee of $250 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory approvals
and approvals of the shareholders of the Manager and of Mellon. The merger
is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
NOTE 3-SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $234,102,181 and
$91,740,521, respectively, for the year ended March 31, 1994, and
consisted entirely of municipal bonds and short-term municipal
investments.
At March 31, 1994, accumulated net unrealized depreciation on
investments was $4,942,108, consisting of $2,639,146 gross unrealized
appreciation and $7,581,254 gross unrealized depreciation.
At March 31, 1994, 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).
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
We have audited the accompanying statement of assets and liabilities
of Dreyfus California Intermediate Municipal Bond Fund, including the
statement of investments, as of March 31, 1994, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended, and
financial highlights for each of the years indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of March 31, 1994 by correspondence
with the custodian. 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 California Intermediate Municipal Bond Fund at March
31, 1994, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the indicated years, in
conformity with generally accepted accounting principles.
(Ernst & Young Signature Logo)
New York, New York
April 29, 1994
May 2, 1994
May 3, 1994
May 4, 1994
May 5, 1994
DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended
March 31, 1994 as "exempt-interest dividends" (not subject to regular
Federal and, for individuals who are California residents, California
personal income taxes).
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 1994 calendar year
on Form 1099-DIV which will be mailed by January 31, 1995.
(Dreyfus `D' Logo)
DREYFUS CALIFORNIA INTERMEDIATE
MUNICIPAL BOND FUND
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 902AR943
(Dreyfus Logo)
California
Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1994
(Dreyfus Lion Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
____________________________________________________
| | | |
| | LEHMAN BROTHERS | |
| PERIOD | 10-YEAR | DREYFUS CALIFORNIA |
| | MUNICIPAL | INTERMEDIATE |
| | BOND INDEX * | MUNICIPAL BOND FUND |
|-----------|-----------------|---------------------|
| 4/20/92 | 10,000 | 10,000 |
| 4/30/92 | 10,000 | 10,003 |
| 5/31/92 | 10,117 | 10,119 |
| 6/30/92 | 10,292 | 10,271 |
| 7/31/92 | 10,630 | 10,648 |
| 8/31/92 | 10,504 | 10,487 |
| 9/30/92 | 10,592 | 10,535 |
| 10/31/92 | 10,484 | 10,360 |
| 11/30/92 | 10,675 | 10,607 |
| 12/31/92 | 10,799 | 10,732 |
| 1/31/93 | 10,981 | 10,887 |
| 2/28/93 | 11,383 | 11,422 |
| 3/31/93 | 11,217 | 11,251 |
| 4/30/93 | 11,324 | 11,360 |
| 5/31/93 | 11,363 | 11,382 |
| 6/30/93 | 11,587 | 11,610 |
| 7/31/93 | 11,617 | 11,602 |
| 8/31/93 | 11,857 | 11,881 |
| 9/30/93 | 12,003 | 12,087 |
| 10/30/93 | 12,023 | 12,128 |
| 11/30/93 | 11,925 | 12,036 |
| 12/31/93 | 12,179 | 12,282 |
| 1/31/94 | 12,328 | 12,440 |
| 2/28/94 | 11,991 | 12,072 |
| 3/31/94 | 11,532 | 11,647 |
|---------------------------------------------------|
|-------------------------------------------------------|
| DREYFUS CALIFORNIA INTERMEDIATE MUNICIPAL BOND FUND |
|-------------------------------------------------------|
| AVERAGE ANNUAL TOTAL RETURNS ENDED ON 3/31/94 |
|-------------------------------------------------------|
| | SINCE INCEPTION |
| 1 YEAR | (4/20/92) |
|-----------------------------|-------------------------|
| 3.52% | 8.15% |
|-------------------------------------------------------|
