LETTER TO SHAREHOLDERS
Dear Shareholder:
As your Fund ended its annual reporting period on March 31, 1995, its net
asset value was $12.81 per share. Income dividends of approximately $.609 per
share were paid during this period, representing an annualized distribution
rate per share of 4.75% based on the March 31, 1995 closing 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 (AMT) on some portfolio income.
As 1994 drew to a close, the bond market continued to exhibit great
volatility. Yields, as measured by the Bond Buyer 20-Bond GO Index, rose
dramatically during the year from a low of 5.25% in February to a high of
7.06% in November.* Much of this rise was attributable to tightening moves by
the Federal Reserve Board during the year in an effort to slow what appeared
to be a very strong economy. The last gasp of this yield rally occurred with
the release of strong retail sales data at year-end. Early in the first
quarter of 1995, a solid market recovery was underway as the threat of
inflation began to wane.
While the economy grew at its fastest pace in 10 years during 1994, there
are developing signs that the expansion is moderating as higher interest
rates take hold. As an example, existing home sales, new home construction
and auto sales have shown weakness during the first quarter of 1995. In
addition, jobless claims increased and inventories rose during the quarter as
sales slowed. Many forecasts of economic growth in the first half of 1995 are
being adjusted downward to reflect this recent slowdown.
With inflation remaining subdued and economic activity seeming to slow,
the case for further Fed tightening near term seems weak. In fact, the only
fear of tighter monetary policy of late stems from possible efforts by the
Fed to support a weak U.S. dollar. The economic weakness of our major trading
partners, Canada and Mexico, augments the probability that our own economy
will continue to decelerate.
During the previous year, we continued to emphasize coupon income and
strove to maintain a fully invested portfolio position. New money entering
the Fund declined somewhat from the rapid advances of earlier years and
contributed to a more subdued level of activity. The Fund's volatility levels
declined as a result of the emphasis on higher coupons and the normal aging
of a stable portfolio. The Fund's credit quality profile continued high with
a strong emphasis on triple-A rated securities.
While there are many factors which affected the performance of the Fund
during this very volatile year, such as interest rate hikes, inflation
pressures, and certain conditions in the municipal marketplace, the main
factor which, in large measure, drove portfolio activity, and therefore
performance, was the dramatic outflow of assets from the Fund during 1994 as
the market weakened.
The Fund's assets declined approximately one-third during the year,
primarily from redemptions of shares. This required that sales be made in a
declining market environment or that newly-received money be used to cover
share redemptions instead of being invested in higher-yielding securities.
The sale of existing long-term securities to cover withdrawals in a
dramatically declining market intensified the downward pressure on net asset
value. By the beginning of the first quarter of 1995, however, these
pressures had abated as the market began to recover. From its Lipper total
return ranking of last among eight funds in the Massachusetts Intermediate
Municipal Debt Funds Category for the full fiscal year ended March 31, 1995,
your Fund's total return showed dramatic improvement in the quarter ended
March 31, when its total return ranked second among eight funds in this same
category.** While we
were disappointed in the performance on a total rate of return basis for the
full year of 1994, we were very pleased with the Fund's primary goal - the
maximization of tax exempt income - during the reporting period. Its 12-month
yield for the period ended March 31, 1995 also ranked second out of 8 in the
Massachusetts Intermediate Municipal Debt Funds Category as reported by
Lipper. Of course, past performance is no guarantee of future results.***
Our strategy in this environment is to remain fully invested in order to
take advantage of any potential market improvement and provide a high level
of tax exempt income. The municipal market is also benefiting from sharply
reduced levels of supply compared to previous years, which has intensified
demand and should continue to help price performance. Our view of a
continuation of the market rally is a cautious one, however, since much of
the advance in bond prices may already be behind us-even as the economy slows
further. As the year goes forward, we will be slowly adding more defensive,
higher-coupon securities to the portfolio in anticipation of an increase in
inflationary pressures by midyear.
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
April 10, 1995
New York, N.Y.
*** The Bond Buyer 20-Bond GO Index is made up of general obligation bonds
maturing in 20 years and has a rating roughly
equivalent to A1.
*** SOURCE: LIPPER ANALYTICAL SERVICES, INC. - The Fund's ranking reflects
the waiver of a portion of the Fund's management fee
payable, without which returns would have been lower.
*** The Fund's yield ranking reflects the absorption of certain expenses by
The Dreyfus Corporation without which the Fund's yield and ranking would
have been lower.
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
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)
Dollars
$12,048
Lehman Brothers
10-Year Municipal
Bond Index*
$11,706
Dreyfus Massachusetts Intermediate Municipal
Bond Fund
*Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (6/26/92)
MARCH 31, 1995 TO MARCH 31, 1995
----------------- ---------------------------
4.23% 5.86%
Past performance is not predictive of future performance.
The above graph 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
maintains a portfolio with a weighted-average maturity ranging 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, geographically
unrestricted 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. Also, unlike the Fund
which principally limits investments to Massachusetts municipal obligations,
the Index is not State-specific. 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.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-97.9% AMOUNT VALUE
-------------------------- ------------- --------
<S> <C> <C>
MASSACHUSETTS-86.3%
Arlington 5%, 8/15/2001..................................................... $ 200,000 $ 199,340
Attleboro:
5.50%, 1/15/2001........................................................ 400,000 401,656
5.70%, 1/15/2002........................................................ 400,000 405,492
5.90%, 1/15/2004........................................................ 325,000 332,651
6%, 1/15/2005........................................................... 345,000 354,981
Belchertown, Refunding:
4.80%, 10/15/2001 (Insured; MBIA)....................................... 240,000 235,250
5%, 10/15/2002 (Insured; MBIA).......................................... 400,000 396,032
Boston:
6.10%, 7/1/1999 (Insured; MBIA)......................................... 250,000 260,875
6.20%, 7/1/2002......................................................... 865,000 914,997
Refunding 5.20%, 2/1/2004 (Insured; AMBAC).............................. 500,000 495,775
Revenue, Refunding (Boston City Hospital):
5.45%, 2/15/2004 (Insured; FHA)....................................... 500,000 485,935
5.45%, 8/15/2004 (Insured; FHA)....................................... 210,000 203,841
5.55%, 2/15/2005 (Insured; FHA)....................................... 295,000 286,262
Brockton, Refunding:
5.60%, 6/1/2001 (Insured; AMBAC)........................................ 255,000 262,469
5.70%, 6/1/2002 (Insured; AMBAC)........................................ 260,000 268,772
Brookline 5.20%, 9/1/2003................................................... 500,000 499,975
Canton Industrial Development Finance Authority, IDR
(General Signal Corp.) 5.625%, 12/1/2002................................ 510,000 513,264
Dartmouth 4.90%, 5/1/2002................................................... 200,000 198,106
Greater New Bedford Regional Refuse Management District:
4.75%, 5/1/1997......................................................... 815,000 801,903
5.10%, 5/1/2000......................................................... 240,000 227,825
Harwich:
4%, 2/15/2000........................................................... 1,105,000 1,036,733
4.20%, 2/15/2001........................................................ 1,080,000 1,011,323
Haverhill 6.30%, 6/15/2002.................................................. 100,000 102,039
Holyoke, Refunding:
6.10%, 11/1/1998........................................................ 190,000 195,787
6.20%, 11/1/1999........................................................ 100,000 103,783
Lawrence:
4.40%, 9/15/1998........................................................ 1,100,000 1,069,167
4.625%, 2/15/2005....................................................... 1,190,000 1,090,980
Lowell 5.60%, 4/1/2005...................................................... 1,530,000 1,547,503
Ludlow 6.90%, 10/15/2003.................................................... 100,000 112,148
Lynn, Refunding:
4.90%, 1/15/2005 (Insured; FSA)......................................... 1,210,000 1,142,361
5%, 1/15/2006........................................................... 1,185,000 1,122,385
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------------------- ----------- -------
MASSACHUSETTS(CONTINUED)
Massachusetts Bay Transportation Authority, Refunding 6%, 3/1/2005.......... $ 1,000,000 $ 1,040,090
Massachusetts Commonwealth:
Consolidated Loan:
5.25%, 6/1/1998....................................................... 100,000 101,505
5.75%, 5/1/2003....................................................... 500,000 516,935
6.20%, 6/1/2003....................................................... 85,000 90,415
Refunding 4.90%, 2/1/2003............................................... 1,000,000 972,680
Massachusetts Convention Center Authority, Refunding (Hynes Convention
Center)
5.90%, 9/1/1998......................................................... 250,000 258,082
Massachusetts Education Loan Authority, Education Loan Revenue:
7.40%, 6/1/1998 (LOC; Rabobank Nederland) (a)........................... 330,000 335,564
7.55%, 1/1/2002 (Insured; MBIA)......................................... 880,000 949,960
8%, 6/1/2002 (LOC; Rabobank Nederland) (a).............................. 90,000 94,987
Massachusetts Health and Educational Facilities Authority, Revenue:
(Bentley College) 5.50%, 7/1/2003 (Insured; MBIA)....................... 500,000 505,900
(Beth Israel Hospital) 5.10%, 7/1/2000 (Insured; AMBAC)................. 300,000 301,896
(Brigham and Womens Hospital) 4.90%, 7/1/2005........................... 1,840,000 1,730,833
(Cape Cod Health System) 5%, 11/15/2002
(Insured; College Construction Loan Insurance Association)............ 1,000,000 978,260
(Central New England Health System) 5.75%, 8/1/2003..................... 1,000,000 922,160
(New England Medical Center Hospitals):
5.60%, 7/1/1999 (Insured; FGIC)....................................... 100,000 102,493
4.90%, 7/1/2006 (Insured; MBIA)....................................... 1,365,000 1,285,912
(Refunding - Baystate Medical Center):
4.60%, 7/1/2002 (Insured; FGIC)....................................... 1,000,000 946,130
4.90%, 7/1/2005 (Insured; FGIC)....................................... 1,000,000 941,410
(Refunding - Massachusetts General Hospital):
4.85%, 7/1/2004 (Insured; AMBAC)...................................... 1,000,000 943,580
6%, 7/1/2004 (Insured; AMBAC)......................................... 1,875,000 1,972,613
(Refunding - Melrose-Wakefield Hospital):
5.50%, 7/1/1999....................................................... 200,000 201,486
5.80%, 7/1/2001....................................................... 100,000 101,453
(University of Massachusetts Medical School Research Project)
5.30%, 7/1/2002 (Insured; College Construction Loan Insurance Association) 400,000 401,396
Massachusetts Housing Finance Agency:
(Holy Cross College-11) 6%, 11/1/2002................................... 100,000 104,700
Housing Projects, Refunding:
5.20%, 4/1/2000....................................................... 800,000 788,600
5.25%, 4/1/2002 (Insured; AMBAC)...................................... 1,000,000 998,260
5.35%, 10/1/2003 (Insured; AMBAC)..................................... 1,750,000 1,753,552
Residential Development 5.25%, 5/15/2001 (Collateralized; FNMA)......... 1,000,000 996,830
SFHR 6.90%, 12/1/2001................................................... 95,000 99,468
Massachusetts Industrial Finance Agency, Revenue:
(Museum of Fine Arts-Boston) 6.20%, 1/1/2000 (Insured; MBIA)............ 100,000 103,709
(Refunding - Combined Jewish Philanthropies) 5.65%, 2/1/2003 (Insured; AMBAC) 795,000 798,919
(Refunding - Refusetech, Inc. Project) 6.15%, 7/1/2002.................. 1,800,000 1,812,780
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------------------- ----------- -------
MASSACHUSETTS(CONTINUED)
Massachusetts Municipal Wholesale Electric Co., Power Supply Systems Revenue:
5.875%, 7/1/2003........................................................ $ 500,000 $ 508,600
Refunding:
6.30%, 7/1/2001....................................................... 100,000 104,333
6.40%, 7/1/2002....................................................... 100,000 105,006
Massachusetts Water Pollution Abatement Trust, Water Pollution Abatement
Revenue
(MWRA Loan Program) 4.75%, 2/1/2002..................................... 500,000 478,840
New Bedford 5.60%, 3/1/2003................................................. 600,000 581,772
New England Education Loan Marketing Corp., Student Loan Revenue:
6%, 3/1/2002............................................................ 500,000 510,445
6.60%, 9/1/2002......................................................... 100,000 103,724
6.90%, 11/1/2009........................................................ 1,000,000 1,058,580
Newton:
4.40%, 4/15/2002........................................................ 600,000 576,090
4.50%, 4/15/2003........................................................ 575,000 551,000
North Andover:
6.50%, 11/1/2004........................................................ 300,000 324,609
6.55%, 11/1/2005........................................................ 300,000 323,634
North Reading, Refunding 6.40%, 6/15/2002 (Insured; MBIA)................... 200,000 215,120
Pioneer Valley Transit Authority, COP 5.70%, 2/1/2003 (Insured; CGIC)....... 1,240,000 1,270,554
Plymouth County, COP 6.50%, 10/1/2001....................................... 200,000 204,670
Quincy, Revenue, Refunding (Quincy Hospital):
4.70%, 1/15/2002 (Insured; FSA)......................................... 2,735,000 2,621,169
4.80%, 1/15/2003 (Insured; FSA)......................................... 2,745,000 2,627,706
Springfield:
4.90%, 1/15/2002 (Insured; MBIA) ....................................... 850,000 830,280
Refunding:
6%, 9/1/2001.......................................................... 500,000 504,475
4.90%, 9/1/2002 (Insured; MBIA)....................................... 515,000 502,166
Swansea 6.60%, 1/15/2005.................................................... 100,000 107,016
Taunton 5.25%, 7/15/2002 (Insured; AMBAC)................................... 100,000 101,138
Webster 6.50%, 9/1/2005 (Insured; AMBAC).................................... 310,000 331,288
Westfield:
4.20%, 9/1/2000 (Insured; FSA).......................................... 500,000 473,020
4.30%, 9/1/2001 (Insured; FSA).......................................... 500,000 469,705
Refunding 4.50%, 12/15/2003 (Insured; MBIA)............................. 960,000 891,072
Westford, Refunding 5%, 10/15/2004 (Insured; AMBAC)......................... 795,000 774,974
Weymouth 6%, 6/15/2001...................................................... 100,000 103,281
Woods Hole, Marthas Vineyard & Nantucket 6.10%, 3/1/2005.................... 690,000 718,828
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------------------- ----------- ---------
MASSACHUSETTS(CONTINUED)
Worcester:
5.80%, 8/1/1998......................................................... $ 200,000 $ 203,204
5.80%, 8/1/1999......................................................... 250,000 254,057
6%, 8/1/2003............................................................ 545,000 556,995
U. S. RELATED-11.6%
Guam Airport Authority, Revenue 6%, 10/1/2000............................... 1,100,000 1,109,713
Guam Government 4.90%, 11/15/2004........................................... 5,910,000 5,505,047
Puerto Rico Commonwealth Highway and Transportation Authority,
Highway Revenue, Refunding 5.875%, 7/1/1999............................. 100,000 102,718
Puerto Rico Housing Bank and Finance Agency, Refunding
(Commonwealth Approved Subsidy Prepayment) 5%, 12/1/2002................ 1,240,000 1,164,881
-----------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $67,600,208).................... $66,301,878
===========
SHORT-TERM MUNICIPAL INVESTMENTS-2.1%
Massachusetts Commonwealth, VRDN 3.75% (b).................................. $ 600,000 $ 600,000
Massachusetts Industrial Finance Agency, Revenue, Refunding, VRDN
(Cabot Newburyport Ltd.) 4.25% (b)...................................... 800,000 800,000
-----------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $1,400,000).................... $ 1,400,000
===========
TOTAL INVESTMENTS-100.0%
(cost $69,000,208)...................................................... $67,701,878
===========
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation IDR Industrial Development Revenue
CGIC Capital Guaranty Insurance Corporation LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance Insurance
FGIC Financial Guaranty Insurance Company Corporation
FHA Federal Housing Administration SFHR Single Family Housing Revenue
FNMA Federal National Mortgage Association VRDN Variable Rate Demand Notes
FSA Financial Security Assurance
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
AAA Aaa AAA 49.4%
AA Aa AA 3.3
A A A 21.0
BBB Baa BBB 24.2
F-1+, F-1 MIG1, VMIG1 & P1 SP1 & A1 2.1
------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $69,000,208)-see statement...................................... $67,701,878
Interest receivable..................................................... 942,647
Prepaid expenses........................................................ 16,612
-------------
68,661,137
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 9,355
Due to Custodian..................................................... 74,674
Payable for shares of Beneficial Interest redeemed...................... 2,000
Accrued expenses and other liabilities.................................. 72,486 158,515
-------- -------------
NET ASSETS ................................................................ $68,502,622
=============
REPRESENTED BY:
Paid-in capital......................................................... $72,421,595
Accumulated net realized (loss) on investments.......................... (2,620,643)
Accumulated net unrealized (depreciation) on investments-Note 3......... (1,298,330)
-------------
NET ASSETS at value applicable to 5,348,137 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $68,502,622
============
NET ASSET VALUE, offering and redemption price per share
($68,502,622/5,348,137 shares).......................................... $12.81
=========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $4,134,740
EXPENSES:
Management fee-Note 2(a).............................................. $ 467,124
Shareholder servicing costs-Note 2(b)................................. 145,570
Professional fees..................................................... 27,170
Trustees' fees and expenses-Note 2(c)................................. 14,893
Prospectus and shareholders' reports.................................. 14,528
Custodian fees........................................................ 7,844
Registration fees..................................................... 3,491
Miscellaneous......................................................... 32,497
------------
713,117
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 328,284
------------
TOTAL EXPENSES.................................................. 384,833
------------
INVESTMENT INCOME-NET........................................... 3,749,907
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $(2,620,069)
Net unrealized appreciation on investments.............................. 1,403,906
------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (1,216,163)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,533,744
=============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
-------------------------------
1994 1995
------------- ----------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 3,446,771 $ 3,749,907
Net realized gain (loss) on investments................................. 91,074 (2,620,069)
Net unrealized appreciation (depreciation) on investments for the year.. (3,426,852) 1,403,906
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 110,993 2,533,744
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (3,446,771) (3,749,907)
Net realized gain on investments........................................ (10,493) (91,423)
------------ ------------
TOTAL DIVIDENDS....................................................... (3,457,264) (3,841,330)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 89,753,354 16,540,755
Dividends reinvested.................................................... 2,741,287 2,833,098
Cost of shares redeemed................................................. (32,851,162) (40,811,502)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS 59,643,479 (21,437,649)
------------ -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 56,297,208 (22,745,235)
NET ASSETS:
Beginning of year....................................................... 34,950,649 91,247,857
------------- ------------
End of year............................................................. $91,247,857 $68,502,622
============= ============
SHARES SHARES
---------------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 6,642,576 1,300,469
Shares issued for dividends reinvested.................................. 203,491 223,568
Shares redeemed......................................................... (2,435,307) (3,245,315)
-------------- ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 4,410,760 (1,721,278)
============ ============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
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 the Fund's financial statements.
YEAR ENDED MARCH 31,
---------------------------------
PER SHARE DATA:
1993(1) 1994 1995
------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of year.................................... $12.50 $13.15 $12.91
------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net................................................. .57 .67 .61
Net realized and unrealized gain (loss) on investments................ .65 (.24) (.08)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS.................................... 1.22 .43 .53
------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net.................................. (.57) (.67) (.61)
Dividends from net realized gain on investments....................... -- -- (.02)
------- ------- -------
TOTAL DISTRIBUTIONS................................................. (.57) (.67) (.63)
------- ------- -------
Net asset value, end of year.......................................... $13.15 $12.91 $12.81
------- ------- -------
------- ------- -------
TOTAL INVESTMENT RETURN................................................... 12.05%(2) 3.18% 4.23%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... -- .06% .49%
Ratio of net investment income to average net assets.................. 5.17%(2) 4.90% 4.82%
Decrease reflected in above expense ratios due to undertakings
by the Manager...................................................... 1.59%(2) .92% .42%
Portfolio Turnover Rate............................................... 9.66%(3) 4.64% 9.41%
Net Assets, end of year (000's Omitted)............................... $34,951 $91,248 $68,503
(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, 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, 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.
The Fund has an unused capital loss carryover of approximately $432,000
available for Federal income tax purposes to be applied against future net
securities profits, if any realized subsequent to March 31, 1995. The
carryover does not include net realized securities losses from November 1,
1994 through March 31, 1995 which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, the carryover expires in
fiscal 2003.
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (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 April 30, 1995 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 $328,284 for the
year ended March 31, 1995.
The Manager has currently undertaken from May 1, 1995 through June 30,
1995, 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 .35
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 year ended March 31, 1995,
the Fund was charged an aggregate of $66,304 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.
The Chairman of the Board receives an additional 25% of such compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $24,289,705 and $45,963,949, respectively, for the year ended
March 31, 1995, and consisted entirely of long-term and short-term municipal
investments.
At March 31, 1995, accumulated net unrealized depreciation on investments
was $1,298,330, consisting of $612,889 gross unrealized appreciation and
$1,911,219 gross unrealized depreciation.
At March 31, 1995, 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 LLP, 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, 1995, 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, 1995 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Massachusetts Intermediate Municipal Bond Fund at March
31, 1995, 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 and Young Signature Logo)
New York, New York
April 28,1995
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, 1995 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 1995 calendar year
on Form 1099-DIV which will be mailed by January 31, 1996.
(Dreyfus Logo)
DREYFUS MASSACHUSETTS 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
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. 268AR953
(Dreyfus Lion "D" Logo)
Massachusetts
Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1995
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 |
| 3/31/93 | 10,898 | 10,885 |
| 3/31/94 | 11,205 | 11,231 |
| 3/31/95 | 12,048 | 11,706 |
|---------------------------------------------------|
* Source: Lehman Brothers
