Dreyfus
California Intermediate Municipal Bond Fund
SEMIANNUAL REPORT September 30, 1999
(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
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 Year 2000 Issues (Unaudited)
and its share price.
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.
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
14 Financial Highlights
15 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus California Intermediate Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus California
Intermediate Municipal Bond Fund, covering the six-month period from April 1,
1999 through September 30, 1999. 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, Monica Wieboldt.
When the reporting period began, evidence had emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might re-emerge caused the Federal Reserve Board to raise short-term interest
rates twice during the summer of 1999, effectively offsetting most of last fall'
s interest-rate cuts. Higher interest rates led to some erosion of municipal
bond prices, especially toward the end of the reporting period.
In this environment, however, the yields of tax-exempt bonds have recently been
quite attractive compared to the after-tax yields of taxable bonds of comparable
maturity and credit quality. This is especially true for investors in the higher
federal income tax brackets.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus California Intermediate Municipal Bond
Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 15, 1999
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus California Intermediate Municipal Bond Fund perform during the
period?
The portfolio produced a -1.70% total return(1) over the six-month period ended
September 30, 1999, compared with a total return of -1.46% for the California
Intermediate Municipal Debt Funds category average over the same period.(2)
What is the fund's investment approach?
The fund' s objective is to seek as high a level of income exempt from federal
and California state income taxes as is consistent with the preservation of
capital. We also seek to provide a competitive total return consistent with this
income objective.
In pursuing these goals, we employ two primary strategies. First, we tactically
manage the portfolio's average duration -- a measure of sensitivity to changes
in interest rates -- in anticipation of temporary supply-and-demand adjustments.
If we expect the supply of newly issued bonds to increase, 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
portfolio' s average duration to maintain current yields for as long as
practical.
Second, we attempt to add value by selecting those tax-exempt bonds that we
believe are most likely to provide an attractive total return.
What other factors influenced the fund's performance?
The fund was 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
inflationary pressures might re- The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
emerge. In fact, the Federal Reserve Board increased short-term interest rates
twice during the summer of 1999 in an attempt to forestall a reacceleration of
inflation. Because the market anticipated these changes in monetary policy
before they were announced, longer term tax-exempt yields had already risen by
the time the interest-rate hikes were actually implemented.
In addition, the fund was affected by supply-and-demand factors in the municipal
bond marketplace. Because strong economic conditions have reduced the need for
California municipalities to borrow in the tax-exempt markets, there was
substantially less issuance of new municipal bonds during the first nine months
of 1999 compared to the same period one year ago. While demand has remained
strong from individual investors seeking to reduce their income tax liabilities,
demand from institutional investors such as insurance companies has fallen. This
imbalance between supply and demand has recently boosted the rise of tax-exempt
bond yields relative to taxable U.S. Treasury securities. As a result, municipal
bonds -- including those from California issuers -- are currently offering
tax-exempt yields that compare very favorably with taxable yields after
adjusting for taxes.
What is the fund's current strategy?
We have continued to search for the most attractive values in the California
municipal bond market. We have found such values, in our opinion, primarily in
higher quality intermediate-term bonds. As bonds within the portfolio have been
pre-refunded or called by their issuers, we have generally reinvested those
proceeds in several ways: full coupon paper that supports the income stream, and
issues selling at a discount to their face values. We found value in certain
revenue bonds in the 5- to 7-year and 10- to 14-year maturity ranges. These
bonds' prices may be temporarily depressed because their issuers -- such as
utilities and hospitals -- have lagged the market.
In hindsight, the fund's duration was slightly longer that the average. Over the
past few months we have come more in line with the average, giving the portfolio
greater flexibility to capture prevailing yields for longer periods and take
advantage of the potential for capital appreciation if interest rates begin to
fall from current levels. However, we have kept some cash on hand to give us the
flexibility we need to capture any Y2K-related opportunities as the new year
approaches.
October 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-CALIFORNIA 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
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STATEMENT OF INVESTMENTS
September 30, 1999 (Unaudited)
Principal
LONG-TERM MUNICIPAL INVESTMENTS--96.3% Amount ($) Value ($)
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CALIFORNIA--91.3%
ABAG Finance Authority, COP (Episcopal Homes Foundation)
5.25%, 7/1/2010 3,500,000 3,467,135
Alameda Corridor Transportation Authority, Revenue
5.125%, 10/1/2014 2,500,000 2,446,250
Alta Loma School District
Zero Coupon, 8/1/2015 (Insured; FGIC) 1,000,000 409,690
Anaheim Public Finance Authority,
Electric Systems Distribution Facilities, Revenue
4.625%, 10/1/2027 (Insured; AMBAC) 2,000,000 2,000,000
California Department of Water Resources,
Water Systems Revenue
(Central Valley Project):
5.90%, 12/1/2005 1,175,000 1,273,394
5.125%, 12/1/2011 2,000,000 2,014,040
California Educational Facilities Authority, Revenue:
(Pooled College and University Project)
5.375%, 4/1/2013 (Insured; MBIA) 1,000,000 1,009,630
(Stanford University) 5.25%, 12/1/2013 1,500,000 1,515,600
California Health Facilities Financing Authority, Revenue:
(Casa De Las Campanas) 5%, 8/1/2006 1,985,000 2,009,515
(Downey Community Hospital) 5.625%, 5/15/2008 5,450,000 5,507,116
(Pomona Valley Hospital) 5.375%, 7/1/2009 (Insured; MBIA) 3,240,000 3,351,586
(Saint Francis Memorial Hospital) 5.75%, 11/1/2003 1,130,000 1,197,179
California Housing Finance Agency, Revenue
(Home Mortgage) 5.80%, 8/1/2003 935,000 973,251
California Public Works Board, LR:
(California State University) 5.25%, 10/1/2006 3,000,000 3,120,180
(Department of Corrections-Imperial County)
5.125%, 9/1/2009 4,000,000 4,088,880
(Secretary of State) 6.10%, 12/1/2004 (Insured; AMBAC) 6,100,000 6,636,373
(Various Community College Projects ):
6%, 12/1/2008 (Insured; AMBAC)
(Prerefunded 12/1/2002) 3,975,000(a)4,280,201
4.60%, 10/1/2013 3,000,000 2,739,000
California Statewide Community Development Authority:
Apartment Development Revenue
(Irvine Apartment Communities):
5.05%, 5/15/2008 2,000,000 1,922,780
5.10%, 5/15/2010 2,000,000 1,900,580
COP, Revenue:
(Huntington Memorial Hospital) 5.50%, 7/1/2010 4,000,000 4,130,040
(The Internext Group) 4.25%, 4/1/2005 2,500,000 2,424,200
MFHR (Equity Residential) 5.20%, 12/1/2029 2,000,000 1,942,000
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CALIFORNIA (CONTINUED)
California, Veterans 5.40%, 12/1/2014 5,000,000 4,890,800
Central Coast Water Authority, Revenue
(State Water Project, Regional Facilities)
5.15%, 10/1/2009 (Insured; AMBAC) 6,300,000 6,452,712
Central Valley Financing Authority,
Cogeneration Project Revenue
(Carson Ice) 5.25%, 7/1/2011 (Insured; MBIA) 2,000,000 2,015,360
Escondido Joint Powers Financing Authority, LR
(California Center for the Arts)
5.90%, 9/1/2010 (Insured; AMBAC) 3,440,000 3,660,160
Foothill, Eastern Transportation Corridor Agency,
Toll Road Revenue:
5.25%, 1/15/2012 (Insured; MBIA) 4,550,000 4,588,630
Zero Coupon, 1/1/2013 (Prerefunded 1/1/2010) 2,000,000(a)1,698,340
Los Angeles City, Revenue:
Harbor Department:
6%, 8/1/2006 1,320,000 1,388,297
6%, 8/1/2014 6,500,000 6,671,860
Multi-Family (Earthquake Rehabilitation Projects)
5.65%, 12/1/2025 (Insured; FNMA) 10,000,000 10,278,400
Mortgage 5.75%, 7/1/2002 (Insured; MBIA) 295,000 299,841
Los Angeles County Capital Asset Leasing Corporation,
Leasehold Revenue
5.75%, 12/1/2004 (Insured; AMBAC) 2,600,000 2,777,268
Los Angeles County Metropolitan Transportation Commission,
Sales Tax Revenue
5.50%, 7/1/2007 3,350,000 3,499,745
Los Angeles County Transportation Commission,
Sales Tax Revenue
5.75%, 7/1/2001 (Insured; FGIC) 1,250,000 1,291,625
Los Angeles Department Water & Power, Electric Plant Revenue
5.70%, 9/1/2011 (Insured; FGIC) 3,500,000 3,654,980
Metropolitan Water District of Southern California,
Waterworks Revenue 5.125%, 7/1/2011 4,000,000 4,034,880
Oakland, COP (Oakland Museum)
6%, 4/1/2012 (Insured; AMBAC) 2,500,000 2,599,650
Oakland Redevelopment Agency
(Central District Redevelopment-Senior Tax Allocation)
5.75%, 2/1/2004 (Insured; AMBAC) 1,500,000 1,593,330
Orange County:
COP 5.70, 7/1/2010 (Insured; MBIA) 6,445,000 6,796,124
Public Financing Authority, Waste Management
Systems Revenue 5.25%, 12/1/2004 (Insured; AMBAC) 4,280,000 4,441,313
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- --------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Orange, MFHR (Villa Santiago Rehab Project)
5.60%, 10/1/2027 (Insured: FNMA) 1,445,000 1,478,466
Port Oakland, Revenue:
Port 6.10%, 11/1/2003 (Insured; MBIA) 1,245,000 1,333,930
Special Facilities (Mitsui O.S.K. Lines Ltd.)
6.40%, 1/1/2003 (LOC; Industrial Bank of Japan) 1,000,000 1,052,450
Riverside County Public Financing Authority, COP
5.40%, 5/15/2009 1,875,000 1,808,887
Sacramento Cogeneration Authority,
Cogeneration Project Revenue
5.25%, 7/1/2012 (Insured; MBIA) 1,900,000 1,914,592
Sacramento County
(Community Facilities District Number 1):
5.20%, 12/1/2007 1,115,000 1,103,738
5.30%, 12/1/2008 1,225,000 1,212,909
5.40%, 12/1/2009 1,230,000 1,215,806
San Diego County, COP (Burnham Institute):
4.80%, 9/1/2003 400,000 401,900
5.15%, 9/1/2006 600,000 602,922
5.70%, 9/1/2011 800,000 805,808
San Francisco Bay Area Transit Financing Authority (Bridge Toll):
5%, 2/1/2006 1,000,000 1,001,820
5%, 2/1/2007 1,000,000 995,380
San Francisco City and County Airports Commission,
International Airport Revenue:
6.20%, 5/1/2015 (Insured; FGIC) 1,325,000 1,383,565
(Special Facilities Lease--SFO Fuel)
5.25%, 1/1/2008 (Insured; AMBAC) 2,575,000 2,650,344
San Francisco City and County Redevelopment Agency, LR
(George R. Moscone) Zero Coupon, 7/1/2011 1,700,000 898,994
San Mateo County Joint Powers Financing Authority, LR
(Capitol Projects):
5%, 7/15/2013 (Insured; FSA) 1,180,000 1,152,907
5%, 7/15/2014 (Insured; FSA) 1,000,000 964,960
Santa Ana Housing Authority, MFHR
(City Garden Apartments) 5.35%, 12/1/2006 3,000,000 3,031,770
Southern California Rapid Transit District, Revenue
(Special Benefit Assessment District)
5.75%, 9/1/2005 (Insured; AMBAC) 8,750,000 9,389,975
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CALIFORNIA (CONTINUED)
Stockton Health Facilities Authority, Revenue (Dameron Hospital):
5%, 12/1/2005 1,240,000 1,225,616
5.10%, 12/1/2006 1,305,000 1,289,196
5.20%, 12/1/2007 1,300,000 1,282,567
Tri-City Hospital District, Revenue 5.375%, 2/15/2007 2,500,000 2,604,800
U.S. RELATED--5.0%
Commonwealth of Puerto Rico, Improvement Revenue:
5.375%, 7/1/2005 3,000,000 3,106,170
5.25%, 7/1/2014 2,000,000 1,962,600
Guam, LOR (Infrastructure Improvement)
5.25%, 11/1/2009 (Insured; AMBAC) 1,210,000 1,238,979
Puerto Rico Industrial, Tourist, Educational,
Medical and Environmental Control Facilities
Financing Authority, Industrial Revenue
(Guaynabo Warehouse) 4.35%, 7/1/2006 1,170,000 1,101,298
Virgin Island Water and Power Authority, Electric Systems:
5.125%, 7/1/2003 1,140,000 1,164,077
5.125%, 7/1/2011 1,000,000 980,040
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $181,018,357) 183,348,401
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SHORT-TERM MUNICIPAL INVESTMENTS--1.4%
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CALIFORNIA:
Irvine Ranch Water District, VRDN (Oats)
3.50% (LOC; Landesbank Hessen-Thuringen Gi) 1,600,000 1,600,000
Orange County Sanitation District, COP, VRDN
3.50% (LOC; National Westminster Bank PLC) 1,000,000 1,000,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $2,600,000) 2,600,000
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TOTAL INVESTMENTS (cost $183,618,357) 97.7% 185,948,401
CASH AND RECEIVABLES (NET) 2.3% 4,309,668
NET ASSETS 100.0% 190,258,069
The Fund
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Summary of Abbreviations
AMBAC American Municipal Bond LOR Limited Obligation Revenue
Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FNMA Federal National Mortgage Association MFHR Multi-Family Housing Revenue
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
LOC Letter of Credit
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Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 52.3
AA Aa AA 15.5
A A A 13.9
BBB Baa BBB 9.4
F1+, F-1 MIG1, VMIG1 & P1 SP1, A1 6.9
Not Rated(c) Not Rated(c) Not Rated(c) 2.0
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT SECURITIES
WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST ON THE
MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING DATE.
(B) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE SUBJECT TO PERIODIC
CHANGE.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1999 (Unaudited)
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 183,618,357 185,948,401
Cash 728,338
Interest receivable 2,726,436
Receivable for investment securities sold 992,033
Receivable for shares of Beneficial Interest subscribed 16,479
Prepaid expenses 5,018
190,416,705
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 100,946
Payable for shares of Beneficial Interest redeemed 9,010
Accrued expenses and other liabilities 48,680
158,636
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NET ASSETS ($) 190,258,069
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 190,452,392
Accumulated net realized gain (loss) on investments (2,524,367)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 2,330,044
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NET ASSETS ($) 190,258,069
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
14,132,728
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
13.46
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1999 (Unaudited)
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INVESTMENT INCOME ($):
INTEREST INCOME 4,952,768
EXPENSES:
Management fee--Note 3(a) 586,808
Shareholder servicing costs--Note 3(b) 106,694
Professional fees 23,378
Trustees' fees and expenses--Note 3(c) 15,003
Custodian fees 9,638
Registration fees 8,802
Prospectus and shareholders' reports 8,473
Loan commitment fees--Note 2 428
Miscellaneous 8,634
TOTAL EXPENSES 767,858
INVESTMENT INCOME--NET 4,184,910
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 337,348
Net unrealized appreciation (depreciation) on investments (7,952,348)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (7,615,000)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (3,430,090)
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1999 Year Ended
(Unaudited) March 31, 1999
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OPERATIONS ($):
Investment income--net 4,184,910 8,463,922
Net realized gain (loss) on investments 337,348 1,695,582
Net unrealized appreciation (depreciation)
on investments (7,952,348) 703,204
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (3,430,090) 10,862,708
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DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (4,184,910) (8,463,922)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 15,611,321 41,174,804
Dividends reinvested 3,124,872 6,218,258
Cost of shares redeemed (23,298,819) (50,353,450)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (4,562,626) (2,960,388)
TOTAL INCREASE (DECREASE) IN NET ASSETS (12,177,626) (561,602)
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NET ASSETS ($):
Beginning of Period 202,435,695 202,997,297
END OF PERIOD 190,258,069 202,435,695
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CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,139,133 2,950,296
Shares issued for dividends reinvested 229,079 445,102
Shares redeemed (1,702,152) (3,612,791)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (333,940) (217,393)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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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.
Six Months Ended
September 30, 1999 Year Ended March 31,
-------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.99 13.82 13.27 13.27 13.02 13.08
Investment Operations:
Investment income--net .29 .58 .59 .60 .62 .66
Net realized and unrealized
gain (loss) on investments (.53) .17 .55 -- .25 (.06)
Total from Investment Operations (.24) .75 1.14 .60 .87 .60
Distributions:
Dividends from investment
income--net (.29) (.58) (.59) (.60) (.62) (.66)
Net asset value, end of period 13.46 13.99 13.82 13.27 13.27 13.02
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (3.39)(a) 5.55 8.77 4.60 6.75 4.76
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .78(a) .80 .79 .78 .65 .32
Ratio of net investment income
to average net assets 4.27(a) 4.19 4.35 4.48 4.66 5.13
Decrease reflected in above
expense ratios due to
undertakings by the Manager -- .02 .01 .04 .14 .47
Portfolio Turnover Rate 9.64(b) 26.29 44.77 35.79 41.42 17.28
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Net Assets, end of period
($ x 1,000) 190,258 202,436 202,997 210,790 230,357 239,948
(A) ANNUALIZED.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus California Intermediate Municipal Bond Fund (the "fund") is registered
under the Investment Company Act of 1940, as amended (the "Act"), as a
non-diversified open-end management investment company. The fund's investment
objective is to provide investors with as high a level of current income exempt
from Federal and State of California personal 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. 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 (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities.) Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
the average of the most recent bid and asked prices. Bid price is used when no
asked price is available.
(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 $4,370 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
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $2,863,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1999. If not
applied, $2,142,000 of the carryover expires in fiscal 2004 and $721,000 expires
in fiscal 2005.
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 their pro rata portion
of the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
September 30, 1999, 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 had undertaken from April
1, 1999 through September 30, 1999, to reduce the management fee paid by the
fund, to the extent that the fund's aggregate annual expenses exclusive of
taxes, brokerage, interest on borrowings, commitment fees and extraordinary
expenses exceed an annual rate of .80 of 1% of the value of the fund's average
daily net assets. During the period ended September 30, 1999, there was no
expense reimbursement.
(b) Under the Shareholder Services Plan, the fund reimburses Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, an amount not to exceed
an annual rate of .25 of 1% of the value of the fund's average daily net assets
for certain allocated expenses of providing personal services and/or maintaining
shareholder accounts. The services provided may include personal services
relating to shareholder The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 period ended September 30, 1999, the fund
was charged $54,251 pursuant to the Shareholder Services 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 September 30, 1999, the fund was charged $40,861 pursuant to the transfer
agency agreement.
(c) Each trustee who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $1,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% 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
September 30, 1999, redemption fees amounted to $18
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 1999, amounted to
$18,553,662 and $26,626,144, respectively.
At September 30, 1999, accumulated net unrealized appreciation on investments
was $2,330,044, consisting of $4,286,770 gross unrealized appreciation and
$1,956,726 gross unrealized depreciation.
At September 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
NOTES
For More Information
Dreyfus California Intermediate
Municipal Bond Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
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 902SA999
