COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS MASSACHUSETTS
INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
[Exhibit A]
Past performance is not predictive of future performance.
The above illustration compares a $10,000 investment made in the
Dreyfus Massachusetts Intermediate Municipal Bond Fund on 6/26/92
(Inception Date) to a $10,000 investment made in the Lehman Brothers 10-
Year Municipal Bond Index on that date. For comparative purposes, the
value of the Index on 6/30/92 is used as the beginning value on 6/26/92.
All dividends and capital gain distributions are reinvested.
The Fund invests primarily in Massachusetts municipal securities and has
a portfolio with a weighted-average maturity of between 3 and 10 years.
The Fund's performance takes into account fees and expenses. Unlike the
Fund, the Lehman Brothers 10-Year Municipal Bond Index is an unmanaged
total return performance benchmark for the investment-grade 10-year tax
exempt bond market, consisting of municipal bonds with maturities of
more than 8 years and less than 12 years. The Index does not take into
account charges, fees and other expenses. Further information relating to
Fund performance, including expense reimbursements, if applicable, is
contained in the Condensed Financial Information section of the
Prospectus and elsewhere in this report.
* Source: Lehman Brothers
PRESIDENT'S LETTER
Dear Shareholder:
As your Fund ended its annual reporting period on March 31, 1994,
its net asset value was $12.91 per share. Income dividends of
approximately $.67 per share were paid during this period, representing a
distribution rate per share of 5.17%, based on the March 31, 1994 net
asset value, adjusted for capital gain distributions.* In addition, we are
pleased to report that all dividends paid from net investment income
during this period were exempt from Federal and Commonwealth of
Massachusetts income taxes, although certain shareholders may be
subject to the Federal Alternative Minimum Tax on some portfolio income.
As the reporting period began, the U.S. economy continued to exhibit
signs of weakness. In addition, the rate of inflation remained quite low
which encouraged a continuation of the strong market in fixed-income
securities. In this environment, the prices for fixed-income securities
rose to levels not seen in many years as interest rates declined. However,
as the reporting period ended, signs of solid economic growth had emerged
and, with that, bond prices weakened.
The bond market weakness was a direct result of the fear of rising
inflation as rapid economic growth was recorded in the fourth quarter of
1993 and the first quarter of 1994. The impressive increase in Gross
Domestic Product in the first quarter of 1994 came despite extremely bad
weather and the earthquake in southern California. It had been anticipated
that the bad weather throughout much of the nation, and the earthquake's
impact on a major economic center, would have a significantly negative
impact on overall U.S. economic growth. However, economic growth
continued quite strong.
As the economy continued to improve in the fourth quarter of 1993
and into the first quarter of 1994, fears of rising inflation intensified. It
became clear to market participants that the economy had, over the past
year, moved from recession to rapid expansion. Supporting this view were
increases in several key economic indicators such as capacity utilization,
retail sales, consumer confidence, commodity prices and new orders for
durable goods, just to name a few.
Reaction by the Federal Reserve Board to this rapid economic growth
and its perceived threat to price stability was swift, with two quarter-
point increases in the Federal Funds rate in the first quarter of 1994. The
bond market's negative reaction to these increases was dramatic,
resulting in substantial price declines by the end of this reporting period.
There are many economists who believe that the economy will return
to anemic performance in the second half of 1994, thereby relieving
inflationary pressures. Recent statements by officials of the Federal
Reserve Board have suggested that the Fed will again raise rates if
economic growth continues strong and threatens inflation in the second
quarter of 1994. It is widely understood that Federal Reserve officials are
intent on not giving up gains made against inflation over the past several
years. Near term, this policy will continue to create an uncertain and
volatile bond market. Longer term, however, this should bode well for the
value of long-term securities as inflationary pressures subside.
Your portfolio performed well over the past year relative to this
volatile rate environment, and we are working to manage your portfolio
for another good year ahead. In the coming year, we think it realistic to
anticipate greater market volatility and continued periods of market
discomfort as inflationary pressures rise with economic growth. Our
strategy in this environment has been, and will continue to be, to maintain
strong credit quality in your Fund. In addition, we will take action to
shorten the average maturity of the Fund, and sell certain securities
deemed most vulnerable to rising inflation. This should help further to
lessen the Fund's vulnerability to such dramatic price swings as occurred
in the first quarter of 1994.
We expect 1994 to be another year of strong demand for municipal
securities. The market for Massachusetts municipal securities is much
improved from the difficulties experienced several years ago. This is due,
in large measure, to the successful efforts by the current Administration
to improve governmental operating efficiencies since coming to office.
The past year saw a continuation of this improvement in both the fiscal
and economic health of the Commonwealth. In addition, the national
municipal market is in a strong position as we enter 1994 due in part to
the expectation of a substantially reduced new-issue supply just as tax
rates have risen. We also believe that the Federal Reserve's vigilance in
fighting inflation will benefit all fixed-income instruments in the coming
year.
We have included a current Statement of Investments and recent
financial statements for your review. We greatly appreciate your
investment in the Fund and look forward to serving your investment needs
in the future.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
President
April 15, 1994
New York, N.Y.
* Capital gains, if any, are generally subject to Federal, state and local
taxes.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS-100.0% AMOUNT VALUE
------------ ------------
<S> <C> <C>
MASSACHUSETTS-87.5%
Arlington 5%, 8/15/2001................................................................... $ 200,000 $ 197,684
Attleboro:
5.50%, 1/15/2001...................................................................... 400,000 400,736
5.70%, 1/15/2002...................................................................... 400,000 403,452
5.90%, 1/15/2004...................................................................... 325,000 328,660
6%, 1/15/2005......................................................................... 345,000 349,233
Belchertown, Refunding:
4.80%, 10/15/2001 (Insured; MBIA)..................................................... 240,000 234,506
5%, 10/15/2002 (Insured; MBIA)........................................................ 400,000 394,260
Boston:
6.10%, 7/1/1999 (Insured; MBIA)....................................................... 250,000 262,185
6.20%, 7/1/2002....................................................................... 865,000 915,204
Refunding 5.20%, 2/1/2004 (Insured; AMBAC)............................................ 500,000 491,285
Revenue, Refunding (Boston City Hospital):
5.45%, 2/15/2004 (Insured; FHA)................................................... 500,000 486,580
5.45%, 8/15/2004 (Insured; FHA)................................................... 210,000 204,156
5.55%, 2/15/2005 (Insured; FHA)................................................... 295,000 287,354
Brockton, Refunding:
5.60%, 6/1/2001 (Insured; AMBAC)...................................................... 255,000 262,168
5.70%, 6/1/2002 (Insured; AMBAC)...................................................... 260,000 268,190
Brookline 5.20%, 9/1/2003................................................................. 500,000 495,210
Canton Industrial Development Finance Authority, IDR
(General Signal Corp.) 5.625%, 12/1/2002.............................................. 510,000 493,496
Dartmouth 4.90%, 5/1/2002................................................................. 200,000 195,942
Greater New Bedford Regional Refuse Management District:
4.75%, 5/1/1997....................................................................... 815,000 807,347
5.10%, 5/1/2000....................................................................... 240,000 230,892
Harwich:
4%, 2/15/2000......................................................................... 1,105,000 1,030,611
4.20%, 2/15/2001...................................................................... 1,080,000 1,004,000
Haverhill 6.30%, 6/15/2002................................................................ 100,000 103,072
Holyoke, Refunding:
6.10%, 11/1/1998...................................................................... 190,000 197,592
6.20%, 11/1/1999...................................................................... 100,000 103,714
Lawrence:
4.40%, 9/15/1998...................................................................... 1,100,000 1,067,693
4.625%, 2/15/2005..................................................................... 1,190,000 1,070,310
Ludlow 6.90%, 10/15/2003.................................................................. 100,000 112,254
Lynn, Refunding:
4.90%, 1/15/2005 (Insured; FSA)....................................................... 1,210,000 1,127,127
5%, 1/15/2006......................................................................... 1,185,000 1,110,523
Massachusetts Bay Transportation Authority, Refunding:
5.50%, 3/1/2001....................................................................... 1,000,000 1,011,980
6%, 3/1/2005.......................................................................... 1,000,000 1,028,990
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
MASSACHUSETTS (CONTINUED)
Massachusetts Commonwealth:
Consolidated Loan:
5.25%, 6/1/1998................................................................... $ 100,000 $ 101,787
5.75%, 5/1/2003................................................................... 500,000 511,685
6.20%, 6/1/2003................................................................... 85,000 89,732
Zero Coupon, 12/1/2004............................................................ 2,000,000 1,097,020
Refunding:
4.90%, 2/1/2003................................................................... 1,000,000 956,360
5%, 2/1/2004...................................................................... 3,000,000 2,878,200
5%, 2/1/2004 (Insured; MBIA)...................................................... 1,000,000 966,750
Massachusetts Convention Center Authority, Refunding (Hynes Convention Center):
5.90%, 9/1/1998....................................................................... 250,000 258,805
Zero Coupon, 9/1/2001 (Insured; FGIC)................................................. 2,000,000 1,345,160
Zero Coupon, 9/1/2004................................................................. 1,000,000 556,290
Massachusetts Education Loan Authority, Education Loan Revenue:
7.40%, 6/1/1998 (LOC; Rabobank Nederland) (a)......................................... 410,000 421,008
8%, 6/1/2002 (LOC; Rabobank Nederland) (a)............................................ 95,000 101,027
Massachusetts Health and Educational Facilities Authority, Revenue:
(Bentley College) 5.50%, 7/1/2003 (Insured; MBIA)..................................... 500,000 500,670
(Beth Israel Hospital) 5.10%, 7/1/2000 (Insured; AMBAC)............................... 300,000 301,089
(Brigham and Womens Hospital):
4.70%, 7/1/2003................................................................... 4,000,000 3,781,160
4.90%, 7/1/2005................................................................... 1,840,000 1,739,278
(Cape Cod Health System) 5%, 11/15/2002
(Insured; College Construction Loan Insurance Association)........................ 1,000,000 966,790
(Central New England Health System) 5.75%, 8/1/2003................................... 1,000,000 967,440
(Massachusetts Institute of Technology) 4.90%, 7/1/2006............................... 4,000,000 3,753,840
(New England Medical Center Hospitals):
5.60%, 7/1/1999 (Insured; FGIC)................................................... 100,000 102,361
4.90%, 7/1/2006 (Insured; MBIA)................................................... 1,365,000 1,275,251
(Refunding - Baystate Medical Center):
4.60%, 7/1/2002 (Insured; FGIC)................................................... 1,000,000 938,970
4.90%, 7/1/2005 (Insured; FGIC)................................................... 1,000,000 927,860
(Refunding - Massachusetts General Hospital):
4.85%, 7/1/2004 (Insured; AMBAC).................................................. 1,000,000 945,000
6%, 7/1/2004 (Insured; AMBAC)..................................................... 1,875,000 1,959,469
(Refunding - Melrose-Wakefield Hospital):
5.50%, 7/1/1999................................................................... 200,000 201,910
5.80%, 7/1/2001................................................................... 100,000 101,674
(Refunding - New England Memorial Hospital):
5.10%, 7/1/1999................................................................... 395,000 386,547
5.30%, 7/1/2000................................................................... 450,000 440,109
(University of Massachusetts Medical School Research Project)
5.30%, 7/1/2002 (Insured; College Construction Loan Insurance Association)........ 400,000 399,508
Massachusetts Housing Finance Agency:
Housing Projects, Refunding:
5.20%, 4/1/2000................................................................... 800,000 795,528
5.25%, 4/1/2002 (Insured; AMBAC).................................................. 1,000,000 985,890
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
MASSACHUSETTS (CONTINUED)
Massachusetts Housing Finance Agency (continued):
Housing Projects, Refunding (continued):
5.35%, 10/1/2003 (Insured; AMBAC)................................................. $ 1,750,000 $ 1,720,617
5.45%, 10/1/2004 (Insured; AMBAC)................................................. 1,250,000 1,227,488
Residential Development 5.25%, 5/15/2001 (Collateralized; FNMA)....................... 1,000,000 992,610
Single Family Housing Revenue 6.90%, 12/1/2001........................................ 95,000 98,524
Massachusetts Industrial Finance Agency, Revenue:
(Massachusetts BioMedical) Zero Coupon, 8/1/2000.................................. 1,500,000 1,060,500
(Museum of Fine Arts-Boston) 6.20%, 1/1/2000 (Insured; MBIA)...................... 100,000 104,455
(Refunding - Holy Cross College) 6%, 11/1/2002.................................... 100,000 104,631
(Refunding - Refusetech, Inc. Project) 6.15%, 7/1/2002............................ 1,800,000 1,796,238
Massachusetts Municipal Wheelhouse Electric Co., Power Supply Systems Revenue:
5.875%, 7/1/2003...................................................................... 500,000 502,600
Refunding:
6.30%, 7/1/2001................................................................... 100,000 103,932
6.40%, 7/1/2002................................................................... 100,000 104,411
4.875%, 7/1/2003 (Insured; AMBAC)................................................. 2,000,000 1,900,400
Massachusetts Turnpike Authority, Revenue, Refunding 5%, 1/1/2006......................... 2,000,000 1,874,580
Massachusetts Water Pollution Abatement Trust, Water Pollution Abatement Revenue
(MWRA Loan Program) 4.75%, 2/1/2002................................................... 500,000 471,790
Massachusetts Water Resource Authority, Refunding 5.875%, 11/1/2004....................... 800,000 811,600
New Bedford 5.60%, 3/1/2003............................................................... 600,000 586,284
New England Education Loan Marketing Corp., Student Loan Revenue:
5.80%, 3/1/2002....................................................................... 1,000,000 997,430
6%, 3/1/2002.......................................................................... 500,000 501,840
6.60%, 9/1/2002....................................................................... 100,000 103,313
6.90%, 11/1/2009...................................................................... 1,000,000 1,031,800
Newton:
4.40%, 4/15/2002...................................................................... 600,000 574,860
4.50%, 4/15/2003...................................................................... 575,000 547,843
North Andover:
6.50%, 11/1/2004...................................................................... 300,000 323,310
6.55%, 11/1/2005...................................................................... 300,000 322,263
North Reading, Refunding 6.40%, 6/15/2002 (Insured; MBIA)................................. 200,000 215,568
Palmer, Refunding 5.15%, 10/1/2003 (Insured; MBIA)........................................ 1,000,000 975,810
Plymouth County, COP 6.50%, 10/1/2001..................................................... 200,000 207,486
Quincy, Revenue, Refunding (Quincy Hospital):
4.70%, 1/15/2002 (Insured; FSA)....................................................... 2,735,000 2,597,648
4.80%, 1/15/2003 (Insured; FSA)....................................................... 2,745,000 2,599,433
Salem 5.75%, 7/15/2005 (Insured; AMBAC)................................................... 500,000 508,100
Springfield:
4.90%, 1/15/2002 (Insured; MBIA)...................................................... 850,000 822,146
Refunding:
6%, 9/1/2001...................................................................... 500,000 508,375
4.90%, 9/1/2002 (Insured; MBIA)................................................... 515,000 497,068
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
MASSACHUSETTS (CONTINUED)
Swansea 6.60%, 1/15/2005.................................................................. $ 100,000 $ 106,072
Taunton 5.25%, 7/15/2002 (Insured; AMBAC)................................................. 100,000 100,726
Webster 6.50%, 9/1/2005 (Insured; AMBAC).................................................. 310,000 329,601
Westfield:
4.20%, 9/1/2000 (Insured; FSA)........................................................ 500,000 470,650
4.30%, 9/1/2001 (Insured; FSA)........................................................ 500,000 466,730
Refunding 4.50%, 12/15/2003 (Insured; MBIA)........................................... 960,000 881,674
Westford, Refunding 5%, 10/15/2004 (Insured; MBIA)........................................ 795,000 767,199
Weymouth 6%, 6/15/2001.................................................................... 100,000 103,240
Woods Hole, Marthas Vineyard & Nantucket 6.10%, 3/1/2005.................................. 690,000 717,000
Worcester:
5.80%, 8/1/1998....................................................................... 200,000 203,920
5.80%, 8/1/1999....................................................................... 250,000 252,535
6%, 8/1/2003.......................................................................... 545,000 548,619
U. S. RELATED-12.5%
Guam Airport Authority, Revenue 6%, 10/1/2000............................................. 1,100,000 1,109,856
Guam Government 4.90%, 11/15/2004......................................................... 5,910,000 5,461,254
Puerto Rico Commonwealth 5.50%, 7/1/2005 (Insured; AMBAC)................................. 300,000 302,310
Puerto Rico Commonwealth Highway and Transportation Authority,
Highway Revenue, Refunding 5.875%, 7/1/1999........................................... 100,000 102,891
Puerto Rico Housing Bank and Finance Agency, Refunding
(Commonwealth Approved Subsidy Prepayment) 5%, 12/1/2002.............................. 1,240,000 1,190,003
Puerto Rico Public Building Authority,
Guaranteed Public Education & Health Facilities, Refunding:
5.30%, 7/1/2003................................................................... 3,000,000 2,923,920
Zero Coupon, 7/1/2006............................................................. 500,000 239,490
------------
TOTAL INVESTMENTS (cost $93,205,453)...................................................... $ 90,503,217
============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
COP Certificate of Participation IDR Industrial Development Revenue
FGIC Financial Guaranty Insurance Corporation LOC Letter of Credit
FHA Federal Housing Administration MBIA Municipal Bond Insurance Association
FNMA Federal National Mortgage Association
</TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (B) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- - -------- ------- ----------------- -------------------
AAA Aaa AAA 45.0%
AA Aa AA 8.6
A A A 27.4
BBB Baa BBB 19.0
------
100.0%
======
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Fitch currently provides creditworthiness information for a limited amount
of investments.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $93,205,453)-see statement.................................................. $90,503,217
Interest receivable................................................................... 1,333,567
Receivable for shares of Beneficial Interest sold..................................... 47,000
Prepaid expenses...................................................................... 25,272
Due from The Dreyfus Corporation...................................................... 216,515
------------
92,125,571
LIABILITIES:
Due to Custodian...................................................................... $ 277,706
Payable for shares of Beneficial Interest subscribed.................................. 488,311
Accrued expenses and other liabilities................................................ 111,697 877,714
------------ ------------
NET ASSETS................................................................................ $91,247,857
============
REPRESENTED BY:
Paid-in capital....................................................................... $93,859,244
Accumulated undistributed net realized gain on investments............................ 90,849
Accumulated net unrealized (depreciation) on investments-Note 3....................... (2,702,236)
------------
NET ASSETS at value applicable to 7,069,415 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................................. $91,247,857
============
NET ASSET VALUE, offering and redemption price per share
($91,247,857 / 7,069,415 shares)...................................................... $12.91
======
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1994
INVESTMENT INCOME:
INTEREST INCOME....................................................................... $ 3,491,022
EXPENSES:
Management fee-Note 2(a).......................................................... $ 422,313
Shareholder servicing costs-Note 2(b)............................................. 145,108
Auditing fees..................................................................... 28,324
Registration fees................................................................. 23,948
Prospectus and shareholders' reports.............................................. 18,410
Trustees' fees and expenses-Note 2(c)............................................. 11,245
Legal fees........................................................................ 10,433
Custodian fees.................................................................... 8,058
Organization expenses............................................................. 6,628
Miscellaneous..................................................................... 20,220
------------
694,687
Less-expense reimbursement from Manager due to
undertakings-Note 2(a)........................................................ 650,436
------------
TOTAL EXPENSES............................................................ 44,251
------------
INVESTMENT INCOME-NET..................................................... 3,446,771
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments...................................................... $ 91,074
Net unrealized (depreciation) on investments.......................................... (3,426,852)
------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS......................... (3,335,778)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................................... $ 110,993
============
See notes to financial statements.
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
----------------------------
1993* 1994
------------ ------------
OPERATIONS:
Investment income-net................................................................. $ 725,583 $ 3,446,771
Net realized gain on investments...................................................... 13,912 91,074
Net unrealized appreciation (depreciation) on investments for the year................ 724,616 (3,426,852)
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. 1,464,111 110,993
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................................. (725,583) (3,446,771)
Net realized gain on investments...................................................... (3,644) (10,493)
------------ ------------
TOTAL DIVIDENDS................................................................... (729,227) (3,457,264)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold......................................................... 42,541,301 89,753,354
Dividends reinvested.................................................................. 566,523 2,741,287
Cost of shares redeemed............................................................... (8,992,059) (32,851,162)
------------ ------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS...................... 34,115,765 59,643,479
------------ ------------
TOTAL INCREASE IN NET ASSETS.................................................. 34,850,649 56,297,208
NET ASSETS:
Beginning of year..................................................................... 100,000 34,950,649
------------ ------------
End of year........................................................................... $34,950,649 $91,247,857
============ ============
SHARES SHARES
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold........................................................................... 3,306,696 6,642,576
Shares issued for dividends reinvested................................................ 43,705 203,491
Shares redeemed....................................................................... (699,746) (2,435,307)
------------ ------------
NET INCREASE IN SHARES OUTSTANDING................................................ 2,650,655 4,410,760
============ ============
- - -------------------
* From May 28, 1992 (commencement of operations) to March 31, 1993.
See notes to financial statements.
</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 year indicated. This
information has been derived from information provided in the Fund's financial
statements.
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
-----------------------
PER SHARE DATA: 1993(1) 1994
------- ------
<S> <C> <C>
Net asset value, beginning of year.................................................... $12.50 $13.15
------- ------
INVESTMENT OPERATIONS:
Investment income-net................................................................. .57 .67
Net realized and unrealized gain (loss) on investments................................ .65 (.24)
------- ------
TOTAL FROM INVESTMENT OPERATIONS.................................................. 1.22 .43
------- ------
DISTRIBUTIONS:
Dividends from investment income-net.................................................. (.57) (.67)
Dividends from net realized gain on investments....................................... -- --
------- ------
TOTAL DISTRIBUTIONS............................................................... (.57) (.67)
------- ------
Net asset value, end of year.......................................................... $13.15 $12.91
======= ======
TOTAL INVESTMENT RETURN 12.05%(2) 3.18%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................................... -- .06%
Ratio of net investment income to average net assets.................................. 5.17%(2) 4.90%
Decrease reflected in above expense ratios due to undertakings by the Manager......... 1.59%(2) .92%
Portfolio Turnover Rate............................................................... 9.66%(3) 4.64%
Net Assets, end of year (000's Omitted)............................................... $34,951 $91,248
- - ---------------------
(1) From May 28, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
See notes to financial statements.
</TABLE>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a non-diversified open-end management investment company.
Dreyfus Service Corporation ("Distributor") acts as the exclusive
distributor of the Fund's shares, which are sold to the public without a
sales charge. The Distributor is a wholly-owned subsidiary of The Dreyfus
Corporation ("Manager").
(A) PORTFOLIO VALUATION: The Fund's investments are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices in the
judgment of the Service are readily available and are representative of
the bid side of the market are valued at the mean between the quoted bid
prices (as obtained by the Service from dealers in such securities) and
asked prices (as calculated by the Service based upon its evaluation of the
market for such securities). Other investments (which constitute a
majority of the portfolio securities) are carried at fair value as
determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general
market conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss
from securities transactions are recorded on the identified cost basis.
Interest income, adjusted for amortization of premiums and, when
appropriate, discounts on investments, is earned from settlement date and
recognized on the accrual basis. Securities purchased or sold on a when-
issued or delayed-delivery basis may be settled a month or more after the
trade date.
The Fund follows an investment policy of investing primarily in
municipal obligations of one state. Economic changes affecting the state
and certain of its public bodies and municipalities may affect the ability
of issuers within the state to pay interest on, or repay principal of,
municipal obligations held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid
monthly. Dividends from net realized capital gain 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 provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from all, or substantially all, Federal income
taxes.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the
Manager, the management fee is computed at the annual rate of .60 of 1%
of the average daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund for any full
fiscal year. However, the Manager has undertaken, from April 1, 1993
through January 11, 1994, or until such time as the net assets of the Fund
exceed $100 million, regardless of whether they remain at that level, to
reimburse all fees and expenses of the Fund and thereafter, had undertaken
through April 14, 1994 to reduce the management
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
fee paid by the Fund, to the extent that the Fund's aggregate expenses
(excluding certain expenses as described above) exceeded specified annual
percentages of the Fund's average daily net assets. The expense
reimbursement, pursuant to the undertaking, amounted to $650,436 for the
year ended March 31, 1994.
The Manager has currently undertaken from April 15, 1994 through May
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 payable to it by the Fund in excess of an annual rate of
.10 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 the Distributor 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 year ended March
31, 1994, the Fund was charged an aggregate of $76,014 pursuant to the
Shareholder Services Plan.
(C) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each trustee
who is not an "affiliated person" receives an annual fee of $1,000 and an
attendance fee of $250 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory approvals
and approvals of the shareholders of the Manager and of Mellon. The merger
is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
NOTE 3-SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $92,563,482 and
$33,222,110, respectively, for the year ended March 31, 1994, and
consisted entirely of municipal bonds and short-term municipal
investments.
At March 31, 1994, accumulated net unrealized depreciation on
investments was $2,702,236, consisting of $488,544 gross unrealized
appreciation and $3,190,780 gross unrealized depreciation.
At March 31, 1994, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
We have audited the accompanying statement of assets and liabilities
of Dreyfus Massachusetts Intermediate Municipal Bond Fund, including the
statement of investments, as of March 31, 1994, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended, and
financial highlights for each of the years indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of March 31, 1994 by correspondence
with the custodian. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Massachusetts Intermediate Municipal Bond Fund at
March 31, 1994, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the indicated years, in
conformity with generally accepted accounting principles.
(Ernst & Young Signature Logo)
New York, New York
May 6, 1994
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended
March 31, 1994 as "exempt-interest dividends" (not subject to regular
Federal and, for individuals who are Massachusetts residents,
Massachusetts personal income taxes).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1994 calendar year
on Form 1099-DIV which will be mailed by January 31, 1995.
(Dreyfus `D' Logo)
DREYFUS MASSACHUSETTS INTERMEDIATE
MUNICIPAL BOND FUND
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 268AR943
(Dreyfus Logo)
Massachusetts
Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1994
(Dreyfus Lion Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
____________________________________________________
| | | |
| | LEHMAN BROTHERS | |
| | 10-YEAR |DREYFUS MASSACHUSETTS|
| PERIOD | MUNICIPAL | INTERMEDIATE |
| | BOND INDEX * | MUNICIPAL BOND FUND |
|-----------|-----------------|---------------------|
| 6/26/92 | 10,000 | 10,000 |
| 6/30/92 | 10,000 | 10,024 |
| 7/31/92 | 10,328 | 10,360 |
| 8/31/92 | 10,206 | 10,195 |
| 9/30/92 | 10,291 | 10,244 |
| 10/31/92 | 10,186 | 10,140 |
| 11/30/92 | 10,372 | 10,363 |
| 12/31/92 | 10,493 | 10,476 |
| 1/31/93 | 10,669 | 10,642 |
| 2/28/93 | 11,060 | 11,070 |
| 3/31/93 | 10,898 | 10,885 |
| 4/30/93 | 11,002 | 10,991 |
| 5/31/93 | 11,040 | 11,018 |
| 6/30/93 | 11,258 | 11,212 |
| 7/31/93 | 11,287 | 11,191 |
| 8/31/93 | 11,520 | 11,451 |
| 9/30/93 | 11,662 | 11,607 |
| 10/30/93 | 11,681 | 11,660 |
| 11/30/93 | 11,586 | 11,576 |
| 12/31/93 | 11,833 | 11,795 |
| 1/31/94 | 11,978 | 11,946 |
| 2/28/94 | 11,650 | 11,643 |
| 3/31/94 | 11,205 | 11,231 |
|---------------------------------------------------|
|----------------------------------------------------------|
| DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND |
|----------------------------------------------------------|
| AVERAGE ANNUAL TOTAL RETURNS ENDED ON 3/31/94 |
|----------------------------------------------------------|
| | SINCE INCEPTION |
| 1 YEAR | (6/26/92) |
|-----------------------------|----------------------------|
| 3.18% | 6.80% |
|----------------------------------------------------------|
