LETTER TO SHAREHOLDERS
Dear Shareholder:
As your Fund ended its semi-annual reporting period on September 30,
1994, its net asset value was $12.70 per share. Income dividends of
approximately $.31 per share were paid during this period, representing an
annualized distribution rate per share of 4.91%, based on the September 30,
1994 net asset value. All dividends paid from net investment income during
this period were exempt from Federal and Commonwealth of Massachusetts income
taxes, although certain shareholders may be subject to the Federal
Alternative Minimum Tax on some portfolio income.
The municipal market continued its decline over the reporting period as
the economy continued to grow and inflationary fears increased. While some
acceleration in economic activity was expected, the robust growth experienced
over the past several months surprised most economists and other market
participants. It had been anticipated that the higher interest rates
engendered by the Federal Reserve Board's tighter monetary policy, beginning
in the first quarter of this year, would slow economic expansion.
A wide array of economic indices are showing growth at levels that have
proven to be accurate forecasters of upward inflationary trends in past
recoveries. As an example, consumer spending rebounded in August as retail
sales rose by almost a full percentage point. In addition, job gains remain
strong and jobless claims continue to go lower, while capacity utilization
rates have risen rapidly and are now near the peak level of the last cycle.
Lastly, commodity prices continue on a volatile but upward path. Overall,
these data suggest that a strong growth trend will continue into the fourth
quarter of this year, putting further pressure on the Federal Reserve to
tighten credit again before year-end.
Our strategy in this environment is based on continued caution. We
believe that interest rates will peak over the next several months and that
inflation will continue to be subdued. We have raised our cash position to
limit portfolio volatility, and to be prepared to add to our long positions
at the lower prices which may develop before year-end.
The Massachusetts economy has continued to perform admirably and State
government fiscal policy continues on a sound path. These positive credit
qualities have led to improved liquidity and price appreciation in
Massachusetts bond issues in the past several years. We expect this trend to
continue and to benefit your portfolio.
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
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 17, 1994
New York, N.Y.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
------------ -----------
<S> <C> <C>
MASSACHUSETTS-89.7%
Arlington 5%, 8/15/2001..................................................... $ 200,000 $ 196,116
Attleboro:
5.50%, 1/15/2001........................................................ 400,000 399,072
5.70%, 1/15/2002........................................................ 400,000 401,668
5.90%, 1/15/2004........................................................ 325,000 327,854
6%, 1/15/2005........................................................... 345,000 348,191
Belchertown, Refunding:
4.80%, 10/15/2001 (Insured; MBIA)....................................... 240,000 230,834
5%, 10/15/2002 (Insured; MBIA).......................................... 400,000 387,636
Boston:
6.10%, 7/1/1999 (Insured; MBIA)......................................... 250,000 260,410
6.20%, 7/1/2002......................................................... 865,000 903,821
Refunding 5.20%, 2/1/2004 (Insured; AMBAC).............................. 500,000 482,400
Revenue, Refunding (Boston City Hospital):
5.45%, 2/15/2004 (Insured; FHA)....................................... 500,000 473,935
5.45%, 8/15/2004 (Insured; FHA)....................................... 210,000 198,629
5.55%, 2/15/2005 (Insured; FHA)....................................... 295,000 279,167
Brockton, Refunding:
5.60%, 6/1/2001 (Insured; AMBAC)........................................ 255,000 259,516
5.70%, 6/1/2002 (Insured; AMBAC)........................................ 260,000 264,823
Brookline 5.20%, 9/1/2003................................................... 500,000 487,790
Canton Industrial Development Finance Authority, IDR
(General Signal Corp.) 5.625%, 12/1/2002................................ 510,000 502,585
Dartmouth 4.90%, 5/1/2002................................................... 200,000 193,954
Greater New Bedford Regional Refuse Management District:
4.75%, 5/1/1997......................................................... 815,000 804,364
5.10%, 5/1/2000......................................................... 240,000 230,131
Harwich:
4%, 2/15/2000........................................................... 1,105,000 1,015,164
4.20%, 2/15/2001........................................................ 1,080,000 987,314
Haverhill 6.30%, 6/15/2002.................................................. 100,000 102,315
Holyoke, Refunding:
6.10%, 11/1/1998........................................................ 190,000 196,475
6.20%, 11/1/1999........................................................ 100,000 103,759
Lawrence:
4.40%, 9/15/1998........................................................ 1,100,000 1,059,069
4.625%, 2/15/2005....................................................... 1,190,000 1,049,723
Ludlow 6.90%, 10/15/2003.................................................... 100,000 110,015
Lynn, Refunding:
4.90%, 1/15/2005 (Insured; FSA)......................................... 1,210,000 1,106,170
5%, 1/15/2006........................................................... 1,185,000 1,082,332
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- -----------
MASSACHUSETTS (CONTINUED)
Massachusetts Bay Transportation Authority, Refunding 6%, 3/1/2005.......... $ 1,000,000 $ 1,012,290
Massachusetts Commonwealth:
Consolidated Loan:
5.25%, 6/1/1998....................................................... 100,000 100,921
5.75%, 5/1/2003....................................................... 500,000 502,660
6.20%, 6/1/2003....................................................... 85,000 88,161
Zero Coupon, 12/1/2004................................................ 2,000,000 1,125,940
Refunding:
4.90%, 2/1/2003....................................................... 1,000,000 938,570
5%, 2/1/2004.......................................................... 3,000,000 2,808,030
5%, 2/1/2004 (Insured; MBIA).......................................... 1,000,000 947,700
Massachusetts Convention Center Authority, Refunding (Hynes Convention Center)
5.90%, 9/1/1998......................................................... 250,000 256,788
Massachusetts Education Loan Authority, Education Loan Revenue:
7.40%, 6/1/1998 (LOC; Rabobank Nederland) (a)........................... 375,000 385,189
7.55%, 1/1/2002 (Insured; MBIA)......................................... 925,000 965,663
8%, 6/1/2002 (LOC; Rabobank Nederland) (a).............................. 95,000 101,787
Massachusetts Health and Educational Facilities Authority, Revenue:
(Bentley College) 5.50%, 7/1/2003 (Insured; MBIA)....................... 500,000 494,825
(Beth Israel Hospital) 5.10%, 7/1/2000 (Insured; AMBAC)................. 300,000 299,088
(Brigham and Womens Hospital):
4.70%, 7/1/2003....................................................... 4,000,000 3,647,000
4.90%, 7/1/2005....................................................... 1,840,000 1,683,876
(Cape Cod Health System) 5%, 11/15/2002
(Insured; College Construction Loan Insurance Association)............ 1,000,000 957,770
(Central New England Health System) 5.75%, 8/1/2003..................... 1,000,000 962,940
(Massachusetts Institute of Technology) 4.90%, 7/1/2006................. 4,000,000 3,632,360
(New England Medical Center Hospitals):
5.60%, 7/1/1999 (Insured; FGIC)....................................... 100,000 102,120
4.90%, 7/1/2006 (Insured; MBIA)....................................... 1,365,000 1,215,150
(Refunding - Baystate Medical Center):
4.60%, 7/1/2002 (Insured; FGIC)....................................... 1,000,000 924,650
4.90%, 7/1/2005 (Insured; FGIC)....................................... 1,000,000 911,440
(Refunding - Massachusetts General Hospital):
4.85%, 7/1/2004 (Insured; AMBAC)...................................... 1,000,000 927,080
6%, 7/1/2004 (Insured; AMBAC)......................................... 1,875,000 1,936,256
(Refunding - Melrose-Wakefield Hospital):
5.50%, 7/1/1999....................................................... 200,000 198,538
5.80%, 7/1/2001....................................................... 100,000 99,443
(University of Massachusetts Medical School Research Project)
5.30%, 7/1/2002 (Insured; College Construction Loan Insurance Association) 400,000 394,628
Massachusetts Housing Finance Agency:
(Holy Cross College) 6%, 11/1/2002...................................... 100,000 103,420
Housing Projects, Refunding:
5.20%, 4/1/2000....................................................... 800,000 785,760
5.25%, 4/1/2002 (Insured; AMBAC)...................................... 1,000,000 985,400
5.35%, 10/1/2003 (Insured; AMBAC)..................................... 1,750,000 1,723,015
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- -----------
MASSACHUSETTS (CONTINUED)
Massachusetts Housing Finance Agency (continued):
Residential Development 5.25%, 5/15/2001 (Collateralized; FNMA)......... $ 1,000,000 $ 990,570
SFHR 6.90%, 12/1/2001................................................... 95,000 99,463
Massachusetts Industrial Finance Agency, Revenue:
(Museum of Fine Arts-Boston) 6.20%, 1/1/2000 (Insured; MBIA)............ 100,000 103,741
(Refunding - Combined Jewish Philanthropies) 5.65%, 2/1/2003............ 795,000 789,204
(Refunding - Refusetech, Inc. Project) 6.15%, 7/1/2002.................. 1,800,000 1,794,420
Massachusetts Municipal Wheelhouse Electric Co., Power Supply Systems Revenue:
5.875%, 7/1/2003........................................................ 500,000 499,945
Refunding:
6.30%, 7/1/2001....................................................... 100,000 103,426
6.40%, 7/1/2002....................................................... 100,000 103,755
4.875%, 7/1/2003 (Insured; AMBAC)..................................... 2,000,000 1,872,920
Massachusetts Water Pollution Abatement Trust, Water Pollution Abatement Revenue
(MWRA Loan Program) 4.75%, 2/1/2002..................................... 500,000 468,380
New Bedford 5.60%, 3/1/2003................................................. 600,000 583,854
New England Education Loan Marketing Corp., Student Loan Revenue:
5.80%, 3/1/2002......................................................... 1,000,000 999,940
6%, 3/1/2002............................................................ 500,000 500,560
6.60%, 9/1/2002......................................................... 100,000 102,090
6.90%, 11/1/2009........................................................ 1,000,000 1,021,580
Newton:
4.40%, 4/15/2002........................................................ 600,000 560,040
4.50%, 4/15/2003........................................................ 575,000 532,876
North Andover:
6.50%, 11/1/2004........................................................ 300,000 318,945
6.55%, 11/1/2005........................................................ 300,000 317,730
North Reading, Refunding 6.40%, 6/15/2002 (Insured; MBIA)................... 200,000 212,454
Palmer, Refunding 5.15%, 10/1/2003 (Insured; MBIA).......................... 1,000,000 962,360
Plymouth County, COP 6.50%, 10/1/2001....................................... 200,000 205,982
Quincy, Revenue, Refunding (Quincy Hospital):
4.70%, 1/15/2002 (Insured; FSA)......................................... 2,735,000 2,565,676
4.80%, 1/15/2003 (Insured; FSA)......................................... 2,745,000 2,559,218
Springfield:
4.90%, 1/15/2002 (Insured; MBIA) ....................................... 850,000 813,229
Refunding:
6%, 9/1/2001.......................................................... 500,000 505,155
4.90%, 9/1/2002 (Insured; MBIA)....................................... 515,000 491,217
Swansea 6.60%, 1/15/2005.................................................... 100,000 105,044
Taunton 5.25%, 7/15/2002 (Insured; AMBAC)................................... 100,000 99,361
Webster 6.50%, 9/1/2005 (Insured; AMBAC).................................... 310,000 325,807
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- -----------
MASSACHUSETTS (CONTINUED)
Westfield:
4.20%, 9/1/2000 (Insured; FSA).......................................... $ 500,000 $ 463,930
4.30%, 9/1/2001 (Insured; FSA).......................................... 500,000 458,795
Refunding 4.50%, 12/15/2003 (Insured; MBIA)............................. 960,000 861,053
Westford, Refunding 5%, 10/15/2004 (Insured; MBIA).......................... 795,000 751,124
Weymouth 6%, 6/15/2001...................................................... 100,000 102,843
Woods Hole, Marthas Vineyard & Nantucket 6.10%, 3/1/2005.................... 690,000 707,333
Worcester:
5.80%, 8/1/1998......................................................... 200,000 203,566
5.80%, 8/1/1999......................................................... 250,000 253,642
6%, 8/1/2003............................................................ 545,000 548,902
U. S. RELATED-10.3%
Guam Airport Authority, Revenue 6%, 10/1/2000............................... 1,100,000 1,103,553
Guam Government 4.90%, 11/15/2004........................................... 5,910,000 5,422,248
Puerto Rico Commonwealth 5.50%, 7/1/2005 (Insured; AMBAC)................... 300,000 296,619
Puerto Rico Commonwealth Highway and Transportation Authority,
Highway Revenue, Refunding 5.875%, 7/1/1999............................. 100,000 102,712
Puerto Rico Housing Bank and Finance Agency, Refunding
(Commonwealth Approved Subsidy Prepayment) 5%, 12/1/2002................ 1,240,000 1,165,340
---------
TOTAL INVESTMENTS (cost $82,409,964)........................................ $78,714,292
===========
</TABLE>
<TABLE>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
COP Certificate of Participation IDR Industrial Development Revenue
FGIC Financial Guaranty Insurance Company LOC Letter of Credit
FHA Federal Housing Administration MBIA Municipal Bond Investors Assurance
FNMA Federal National Mortgage Association SFHR Single Family Housing Revenue
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS
FITCH (B) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- ------- ----------------- --------------
<S> <C> <C> <C>
AAA Aaa AAA 49.2%
AA Aa AA 9.6
A A A 20.5
BBB Baa BBB 20.7
-----
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Fitch currently provides creditworthiness information for a limited
number of investments.
See independent accountants' review report and notes to financial statements.
<TABLE>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1994 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $82,409,964)-see statement...................................... $78,714,292
Cash.................................................................... 881,415
Interest receivable..................................................... 1,112,281
Receivable for investment securities sold............................... 740,531
Prepaid expenses........................................................ 21,992
-----------
81,470,511
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 10,567
Payable for shares of Beneficial Interest subscribed.................... 3,012
Accrued expenses and other liabilities.................................. 55,851 69,430
---------- ----------
NET ASSETS ................................................................ $81,401,081
===========
REPRESENTED BY:
Paid-in capital......................................................... $85,437,545
Accumulated net realized (loss) on investments.......................... (340,792)
Accumulated net unrealized (depreciation) on investments-Note 3......... (3,695,672)
-----------
NET ASSETS at value applicable to 6,408,870 outstanding shares of
Beneficial Interest, equivalent to $12.70 per share
(unlimited number of $.001 par value shares authorized)................. $81,401,081
===========
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1994 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 2,226,159
EXPENSES:
Management fee-Note 2(a).............................................. $ 254,618
Shareholder servicing costs-Note 2(b)................................. 78,432
Trustees' fees and expenses-Note 2(c)................................. 6,001
Prospectus and shareholders' reports.................................. 5,844
Professional fees..................................................... 5,479
Custodian fees........................................................ 4,250
Registration fees..................................................... 2,118
Miscellaneous......................................................... 18,635
-------
375,377
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 202,059
-------
TOTAL EXPENSES.................................................. 173,318
---------
INVESTMENT INCOME-NET........................................... 2,052,841
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $(431,641)
Net unrealized (depreciation) on investments............................ (993,436)
----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (1,425,077)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 627,764
============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MARCH 31, SEPTEMBER 30, 1994
1994 (UNAUDITED)
-------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 3,446,771 $ 2,052,841
Net realized gain (loss) on investments.............................. 91,074 (431,641)
Net unrealized (depreciation) on investments for the period.......... (3,426,852) (993,436)
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 110,993 627,764
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................ (3,446,771) (2,052,841)
Net realized gain on investments..................................... (10,493) --
------------- -------------
TOTAL DIVIDENDS.................................................... (3,457,264) (2,052,841)
------------- -------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................ 89,753,354 10,487,531
Dividends reinvested................................................. 2,741,287 1,554,369
Cost of shares redeemed.............................................. (32,851,162) (20,463,599)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS................................................... 59,643,479 (8,421,699)
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ 56,297,208 (9,846,776)
NET ASSETS:
Beginning of period.................................................. 34,950,649 91,247,857
------------- -------------
End of period........................................................ $ 91,247,857 $ 81,401,081
============ ============
SHARES SHARES
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 6,642,576 813,121
Shares issued for dividends reinvested............................... 203,491 120,504
Shares redeemed...................................................... (2,435,307) (1,594,170)
------------- -------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING...................... 4,410,760 (660,545)
============ =============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED MARCH 31, SEPTEMBER 30, 1994
------------------------
PER SHARE DATA: 1993(1) 1994 (UNAUDITED)
------ ------ ------------------
<S> <C> <C> <C>
Net asset value, beginning of period.............. $12.50 $13.15 $12.91
------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net............................. .57 .67 .31
Net realized and unrealized gain (loss) on investments .65 (.24) (.21)
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS................ 1.22 .43 .10
------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net.............. (.57) (.67) (.31)
Dividends from net realized gain on investments... -- -- --
------ ------ ------
TOTAL DISTRIBUTIONS............................. (.57) (.67) (.31)
------ ------ ------
Net asset value, end of period.................... $13.15 $12.91 $12.70
======= ======= ======
TOTAL INVESTMENT RETURN 12.05%(2) 3.18% 1.56%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... -- .06% .41%(2)
Ratio of net investment income to average net assets 5.17%(2) 4.90% 4.84%(2)
Decrease reflected in above expense ratios due to
undertakings by the Manager..................... 1.59%(2) .92% .48%(2)
Portfolio Turnover Rate........................... 9.66%(3) 4.64% 2.13%(3)
Net Assets, end of period (000's Omitted)......... $34,951 $91,248 $81,401
- ------------------------
(1) From May 28, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. Dreyfus
Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
(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 are readily available and
are representative of the bid side of the market in the judgment of the
Service are valued at the mean between the quoted bid prices (as obtained by
the Service from dealers in such securities) and asked prices (as calculated
by the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of municipal securities of
comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue 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 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.
(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 Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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. However, the Manager has
undertaken, from April 1, 1994 through October 18, 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 reduction in
management fee, pursuant to the undertakings, amounted to $202,059 for the
six months ended September 30, 1994.
The Manager has currently undertaken from October 19, 1994 through
December 31, 1994, or until such time as the net assets of the Fund exceed
$125 million, regardless of whether they remain at that level, to waive
receipt of the management fee payable to it by the Fund in excess of an
annual rate of .25 of 1% of the Fund's average net assets.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of
1% 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 six months ended September
30, 1994, the Fund was charged an aggregate of $31,715 pursuant to the
Shareholder Services Plan.
(C) Prior to August 24, 1994 certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each trustee who is not an "affiliated person"
receives an annual fee of $1,000 and an attendance fee of $250 per meeting.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $1,774,002 and $12,226,199, respectively, for the six months
ended September 30, 1994, and consisted entirely of long-term and short-term
municipal investments.
At September 30, 1994, accumulated net unrealized depreciation on
investments was $3,695,672, consisting of $266,086 gross unrealized
appreciation and $3,961,758 gross unrealized depreciation.
At September 30, 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 MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Massachusetts Intermediate Municipal Bond Fund, including the
statement of investments, as of September 30, 1994, and the related
statements of operations and changes in net assets and financial highlights
for the six month period ended September 30, 1994. These financial statements
and financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
March 31, 1994 and financial highlights for each of the two years in the
period ended March 31, 1994 and in our report dated May 6, 1994, we expressed
an unqualified opinion on such statement of changes in net assets and
financial highlights.
(Ernst & Young LLP Signature Logo)
New York, New York
November 7, 1994
DREYFUS MASSACHUSETTS INTERMEDIATE
MUNICIPAL BOND FUND
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
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. 268SA949
Massachusetts
Intermediate
Municipal
Bond Fund
Semi-Annual
Report
September 30, 1994
