Dreyfus
California Intermediate Municipal Bond Fund
SEMIANNUAL REPORT September 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
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,
2000 through September 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, Monica Wieboldt.
Despite some modest fluctuations because of changing economic conditions,
municipal bond prices rose modestly over the past six months with a rally in the
municipal bond market. Most sectors of the municipal bond market have also
benefited from slowing economic growth as well. Additionally, the moderating
effects of the Federal Reserve Board's (the "Fed") interest-rate hikes during
the first half of 2000 helped the Fed to achieve its goal of slowing the U.S.
economy. Other factors such as higher energy prices and a weak euro also served
to slow economic growth.
In general, the overall investment environment that prevailed in the second half
of the 1990s had provided returns well above their long-term averages,
establishing unrealistic expectations for some investors. We believe that as the
risks of the stock market have become more apparent, the relative stability and
income potential of municipal bonds can make them an attractive investment as
part of a well-balanced portfolio.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our web site at www.dreyfus.com. Or,
to speak with a Dreyfus customer service representative, call us at
1-800-782-6620.
Thank you for investing in Dreyfus California Intermediate Municipal Bond Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 16, 2000
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus California Intermediate Municipal Bond Fund perform during the
period?
The portfolio produced a 3.85% total return over the six-month period ended
September 30, 2000.(1) This compares with a total return of 3.89% for the Lipper
California Intermediate Municipal Debt Funds category average over the same
period.(2)
We attribute our performance to a relatively strong investment environment for
municipal bonds generally, and especially in California. The market rally was
driven primarily by signs of an economic slowdown throughout the U.S., as well
as positive supply-and-demand factors affecting municipal bonds from California
and other states.
What is the fund's investment approach?
The fund' s goal is to seek as high a level of current federal and state
tax-exempt income as is consistent with the preservation of capital from a
diversified portfolio of municipal bonds from California issuers. We also manage
the fund in an effort to achieve a competitive total return.
In managing the fund, we employ two primary strategies. First, we tactically
manage the portfolio's average effective duration -- a measure of sensitivity to
changes in interest rates -- in anticipation of temporary supply-and-demand
changes. If we expect the supply of newly issued bonds to increase, we may
reduce the portfolio's average duration to make cash available for the purchase
of new 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 effective duration to maintain current yields for as long as practical.
Second, we attempt to add value by selecting the tax-exempt bonds that we
believe are most likely to provide the highest total returns, which include both
tax-exempt income and price changes over time.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
The fund was positively influenced over the past six months by favorable
economic and market conditions. When the reporting period began on April 1,
2000, the U.S. economy continued to grow strongly, raising concerns that
long-dormant inflationary pressures might reemerge. In response, the Federal
Reserve Board (the "Fed" ) raised short-term interest rates once during the
reporting period. However, signs soon emerged that the Fed's previous rate hikes
were having the desired effect of slowing the economy. Fewer housing starts,
moderating growth and little change in the core inflation rate may suggest that
the Fed's restrictive monetary policies could be near an end.
In addition, the continuing strength of the California economy helped keep
municipal bond yields relatively low compared to bonds from other states.
California enjoyed higher tax revenues, curtailing the state's need to borrow
and resulting in a reduced supply of securities compared to the same period in
1999. At the same time, demand for municipal bonds has been strong from
California residents seeking to protect wealth, especially in the state's high
tech community. When demand rises and supply falls, prices of existing bonds
tend to move higher.
In this environment, we took profits on some of the bonds that had appreciated
most during the market rally, including discount bonds and lower rated and
non-rated bonds. We redeployed those assets primarily into high quality bonds in
the 10- to 15-year maturity range that are not subject to early redemption over
the next several years. These changes helped us extend the fund's average
effective duration, which in turn enabled the fund to benefit from positive
conditions created by strong demand within the intermediate maturity range of
California's municipal bond market.
What is the fund's current strategy?
In our view, while slower economic growth and fewer inflation concerns should
benefit the municipal bond market over the long term, the market may experience
some weakness over the near term as it digests its recent gains and prepares for
concerns that typically affect municipal bonds at year-end. Accordingly, we have
recently increased our cash position in anticipation of better values and
greater investment opportunities ahead.
As of September 30, the fund's average duration was within what we consider a
neutral range. This position is designed to lock in prevailing yields for a
reasonable period while giving us the flexibility we need to access higher
yielding opportunities as they become available.
October 16, 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-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. 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
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
September 30, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
LONG-TERM MUNICIPAL INVESTMENTS--99.0% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--85.7%
ABAG Finance Authority, COP (Episcopal Homes Foundation)
<S> <C> <C> <C> <C>
5.25%, 7/1/2010 3,500,000 3,477,285
Adelanto Public Utility Authority, Revenue
(Utility Systems Project)
4.45%, 11/1/2001 (LOC; Union Bank of California) 2,375,000 2,373,171
Alameda Corridor Transportation Authority, Revenue:
5.125%, 10/1/2014 (Insured; MBIA) 2,500,000 2,542,075
5.125%, 10/1/2016 (Insured; MBIA) 3,000,000 3,002,490
Alta Loma School District
Zero Coupon, 8/1/2015 (Insured; FGIC) 1,000,000 456,500
California Health Facilities Financing Authority, Revenue:
(Casa De Las Campanasl) 5%, 8/1/2006 1,985,000 2,042,029
(Downey Community Hospital) 5.625%, 5/15/2008 5,450,000 5,471,582
(Pomona Valley Hospital) 5.375%, 7/1/2009 (Insured; MBIA) 3,240,000 3,441,852
(Saint Francis Memorial Hospital) 5.75%, 11/1/2003 1,130,000 1,182,025
California Housing Finance Agency, Revenue:
6%, 8/1/2010 1,160,000 1,231,607
(Home Mortgage) 5.80%, 8/1/2003 810,000 840,164
California Public Works Board, LR:
(Secretary of State) 6.10%, 12/1/2004 (Insured; AMBAC) 4,100,000 4,389,337
(Various Community College Projects ):
6%, 12/1/2008 (Insured; AMBAC, Prerefunded 12/1/2002) 3,975,000 (a) 4,206,822
4.60%, 10/1/2013 2,000,000 1,937,000
California Statewide Community Development Authority:
Apartment Development Revenue
(Irvine Apartment Communities):
5.05%, 5/15/2008 2,000,000 1,957,800
5.10%, 5/15/2010 2,000,000 1,949,400
COP, Revenue:
(Huntington Memorial Hospital) 5.50%, 7/1/2010 4,000,000 4,230,960
MFHR (Equity Residential) 5.20%, 12/1/2029 2,000,000 1,999,420
California:
5.25%, 6/1/2015 1,540,000 1,562,638
5.50%, 3/1/2017 5,990,000 6,140,169
Escondido Joint Powers Financing Authority, LR
(California Center for the Arts)
5.90%, 9/1/2010 (Insured; AMBAC) 3,440,000 3,696,934
Foothill, Eastern Transportation Corridor Agency,
Toll Road Revenue:
5.25%, 1/15/2012 (Insured; MBIA) 4,550,000 4,760,665
Zero Coupon, 1/1/2010 2,500,000 2,219,025
Zero Coupon, 1/1/2013 (Prerefunded 1/1/2010) 2,000,000 (a) 1,807,800
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Los Angeles City, Revenue:
Harbor Department:
6%, 8/1/2006 1,320,000 1,377,248
6%, 8/1/2014 6,500,000 6,855,290
Mortgage 5.75%, 7/1/2002 (Insured; MBIA) 110,000 110,920
Multi-Family (Earthquake Rehabilitation Projects)
5.65%, 12/1/2025 (Insured; FNMA) 10,000,000 10,162,300
Los Angeles County Capital Asset Leasing Corporation,
Leasehold Revenue
5.75%, 12/1/2004 (Insured; AMBAC) 2,600,000 2,748,018
Los Angeles County Metropolitan
Transportation Commission, Sales Tax Revenue
5.50%, 7/1/2007 3,350,000 3,507,852
Los Angeles County Transportation Commission,
Sales Tax Revenue
5.75%, 7/1/2001 (Insured; FGIC) 1,250,000 1,268,038
Los Angeles Department Water & Power,
Electric Plant Revenue
5.70%, 9/1/2011 (Insured; FGIC) 3,500,000 3,652,215
Metropolitan Water District of Southern California,
Waterworks Revenue
5.125%, 7/1/2011 4,000,000 4,138,440
Oakland, COP (Oakland Museum)
6%, 4/1/2012 (Insured; AMBAC) 2,500,000 2,579,325
Oakland Redevelopment Agency
(Central District Redevelopment-Senior Tax Allocation)
5.75%, 2/1/2004 (Insured; AMBAC) 1,500,000 1,571,880
Orange, MFHR (Villa Santiago Rehab Project)
5.60%, 10/1/2027 (Insured: FNMA) 1,420,000 1,430,096
Orange County, COP 5.70, 7/1/2010 (Insured; MBIA) 6,445,000 6,920,705
Orange County Public Financing Authority,
Waste Management Systems Revenue
5.25%, 12/1/2004 (Insured; AMBAC) 4,280,000 4,407,972
Port Oakland, Revenue:
Port 6.10%, 11/1/2003 (Insured; MBIA) 1,245,000 1,304,536
Special Facilities (Mitsui O.S.K. Lines, Ltd.)
6.40%, 1/1/2003 (LOC; Industrial Bank of Japan) 1,000,000 1,034,480
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Sacramento County
(Community Facilities District Number 1):
5.20%, 12/1/2007 1,115,000 1,122,549
5.40%, 12/1/2009 1,230,000 1,249,729
Sacramento County Sanitation District
Financing Authority, Revenue
5.50%, 12/1/2014 4,000,000 4,220,160
San Diego County, COP (Burnham Institute)
5.70%, 9/1/2011 800,000 832,776
San Francisco Bay Area
Transit Financing Authority (Bridge Toll):
5%, 2/1/2006 1,000,000 1,009,960
5%, 2/1/2007 1,000,000 1,009,940
San Francisco City and County Airports Commission:
International Airport Revenue:
6.20%, 5/1/2015 (Insured; FGIC) 1,325,000 1,383,366
(Special Facilities Lease--SFO Fuel)
5.25%, 1/1/2008 (Insured; AMBAC) 2,575,000 2,671,434
San Mateo County Joint Powers Financing Authority,
LR (Capitol Projects)
5%, 7/15/2013 (Insured; FSA) 1,180,000 1,198,125
Santa Clara Unified School District
5.50%, 7/1/2016 1,870,000 1,936,665
Southern California Rapid Transit District, Revenue
(Special Benefit Assessment District)
5.75%, 9/1/2005 (Insured; AMBAC) 6,750,000 7,196,715
Stockton Health Facilities Authority, Revenue
(Dameron Hospital):
5.10%, 12/1/2006 1,305,000 1,269,256
5.20%, 12/1/2007 1,300,000 1,260,129
Tri-City Hospital District, Revenue 5.375%, 2/15/2007 2,500,000 2,633,425
U.S. RELATED--13.3%
Guam, LOR (Infrastructure Improvement)
5.25%, 11/1/2009 (Insured; AMBAC) 1,210,000 1,271,045
Puerto Rico Commonwealth, Public Improvement:
5%, 7/1/2004 1,350,000 1,375,096
5%, 7/1/2005 2,500,000 2,552,275
5.375%, 7/1/2005 3,000,000 3,110,400
5.25%, 7/1/2014 (Insured; FSA) 2,000,000 2,050,140
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. RELATED (CONTINUED)
Puerto Rico Commonwealth Highway &
Transportation Authority
6.25%, 7/1/2016 3,000,000 3,365,010
Puerto Rico Electric Power Authority, Power Revenue
5.75%, 7/1/2016 (Insured FSA) 2,000,000 2,102,200
Puerto Rico Industrial Tourist Educational
Medical and Environmental
Control Facilities Financing Authority, Industrial Revenue
(Guaynabo Warehouse):
4.35%, 7/1/2006 1,170,000 1,096,056
4.70%, 7/1/2009 1,050,000 975,030
Puerto Rico Municipal Finance Agency
5.50%, 7/1/2017 (Insured; FSA) 1,000,000 1,017,630
Virgin Island Public Finance Authority, Revenue
5.625%, 10/1/2010 2,000,000 2,036,740
Virgin Island Water and Power Authority, Electric Systems:
5.125%, 7/1/2003 1,140,000 1,155,094
5.125%, 7/1/2011 1,000,000 995,020
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TOTAL INVESTMENTS (cost $167,459,451) 99.0% 172,084,030
CASH AND RECEIVABLES (NET) 1.0% 1,715,165
NET ASSETS 100.0% 173,799,195
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
</TABLE>
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
FGIC Financial Guaranty
Insurance Company
FNMA Federal National
Mortgage Association
FSA Financial Security Assurance
LOC Letter of Credit
LOR Limited Obligation Revenue
LR Lease Revenue
MBIA Municipal Bond
Investors Assurance
Insurance Corporation
MFHR Multi-Family Housing Revenue
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Aaa AAA 50.5
AA Aa AA 21.3
A A A 9.1
BBB Baa BBB 10.4
F1+,F-1 MIG1, VMG1 & P1 SP1, A1 7.3
Not Rated (b) Not Rated (b) Not Rated (b) 1.4
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 167,459,451 172,084,030
Interest receivable 2,399,897
Prepaid expenses 4,170
174,488,097
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 100,267
Cash overdraft due to Custodian 430,598
Payable for shares of Beneficial Interest redeemed 116,273
Accrued expenses and other liabilities 41,764
688,902
--------------------------------------------------------------------------------
NET ASSETS ($) 173,799,195
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 172,299,720
Accumulated undistributed investment income--net 20,379
Accumulated net realized gain (loss) on investments (3,145,483)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 4,624,579
--------------------------------------------------------------------------------
NET ASSETS ($) 173,799,195
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
12,762,855
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 13.62
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 4,416,404
EXPENSES:
Management fee--Note 3(a) 521,256
Shareholder servicing costs--Note 3(b) 97,564
Professional fees 14,770
Trustees' fees and expenses--Note 3(c) 14,113
Custodian fees 8,964
Registration fees 2,571
Prospectus and shareholders' reports 2,537
Loan commitment fees--Note 2 306
Miscellaneous 6,393
TOTAL EXPENSES 668,474
Less--reduction in management fee due to
undertaking--Note 3(a) (581)
NET EXPENSES 667,893
INVESTMENT INCOME--NET 3,748,511
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (123,346)
Net unrealized appreciation (depreciation) on investments 2,910,245
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 2,786,899
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 6,535,410
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 2000 Year Ended
(Unaudited) March 31, 2000
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 3,748,511 8,144,979
Net realized gain (loss) on investments (123,346) (160,422)
Net unrealized appreciation (depreciation)
on investments 2,910,245 (8,568,058)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 6,535,410 (583,501)
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (3,728,132) (8,144,979)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 12,791,859 27,829,097
Dividends reinvested 2,722,592 6,017,249
Cost of shares redeemed (19,229,011) (52,847,084)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (3,714,560) (19,000,738)
TOTAL INCREASE (DECREASE) IN NET ASSETS (907,282) (27,729,218)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 174,706,477 202,435,695
END OF PERIOD 173,799,195 174,706,477
Undistributed investment income--net 20,379 --
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 951,838 2,056,538
Shares issued for dividends reinvested 202,218 446,675
Shares redeemed (1,433,683) (3,927,399)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (279,627) (1,424,186)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<TABLE>
<CAPTION>
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, 2000 Year Ended March 31,
----------------------------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996
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PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C> <C>
beginning of period 13.40 13.99 13.82 13.27 13.27 13.02
Investment Operations:
Investment income--net .29 .58 .58 .59 .60 .62
Net realized and unrealized
gain (loss) on investments .22 (.59) .17 .55 .00(a) .25
Total from Investment Operations .51 (.01) .75 1.14 .60 .87
Distributions:
Dividends from
investment income--net (.29) (.58) (.58) (.59) (.60) (.62)
Net asset value,
end of period 13.62 13.40 13.99 13.82 13.27 13.27
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 7.68(b) .02 5.55 8.77 4.60 6.75
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA (%):
Ratio of expenses to
average net assets .77(b) .79 .80 .79 .78 .65
Ratio of net investment income
to average net assets 4.31(b) 4.32 4.19 4.35 4.48 4.66
Decrease reflected in
above expense ratios
due to undertakings by
The Dreyfus Corporation .00(c) .00(c) .02 .01 .04 .14
Portfolio Turnover Rate 13.47(d) 19.38 26.29 44.77 35.79 41.42
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 173,799 174,706 202,436 202,997 210,790 230,357
(A) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(B) ANNUALIZED.
(C) AMOUNT REPRESENTS LESS THAN .01%.
(D) 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., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Dreyfus Service Corporation ( the "Distributor"), a wholly-owned subsidiary of
the Manager, 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 securities exchange on
which such securities are pri The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
marily traded or 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 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 $7,011 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 $2,519,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 2000. If not
applied, $1,798,000 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 $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
September 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 had undertaken from April
1, 2000 through September 30, 2000 to reduce the management fee paid by the
fund, to the extent that the fund's aggregate annual expenses, exclusive of
taxes, brokerage fees, interest on borrowings, commitment fees and extraordinary
expenses, exceeded an annual rate of .80 of 1% of the value of the fund's
average daily net assets. The reduction in management fee, pursuant to the
undertaking, amounted to $581 during the period ended September 30, 2000.
(b) Under the 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 certain allocated The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
expenses of providing personal services and/or maintaining 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 period ended September 30, 2000, the fund
was charged $51,000 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, 2000, the fund was charged $27,208 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 August 2, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $45,000 and an attendance fee of $5,000 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 August 2, 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 use of the fund's exchange privilege. Prior to June 1, 2000, this fee
was chargeable within fifteen days following the date of issuance. During the
period ended September 30, 2000, redemption fees retained by the fund amounted
to $219.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 2000 amounted to
$22,850,408 and $27,090,175, respectively.
At September 30, 2000, accumulated net unrealized appreciation on investments
was $4,624,579, consisting of $5,172,644 gross unrealized appreciation and
$548,065 gross unrealized depreciation.
At September 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
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
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 902SA009
