DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Massachusetts
Intermediate Municipal Bond Fund. For its semi-annual reporting period ended
September 30, 1995, your Fund produced a total return of 9.11% based on share
price changes and dividends.* Income dividends exempt from Federal and
Commonwealth of Massachusetts personal income taxes of approximately $.298
per share were paid.** This is equivalent to an annualized tax-free
distribution rate per share of 4.52%.***
The Federal Reserve Board relaxed its policy of monetary restraint when
it lowered the Fed Funds rate on July 6, 1995. This reduction ended the
upward pressure on short-term rates which had prevailed since the beginning
of the reporting period. (Despite the monetary restraint that existed,
long-term rates had begun to decline early in the year.) The Fed's policy of
restraint had been based on concern about inflation given the strong economic
news then prevailing. But in July these same reports indicated a significant
weakening trend in the economy. The July decline in the Fed Funds rate
signaled that economic growth issues outweighed, for a time, Fed fears of a
resurgence of inflation.
THE ECONOMY
Economic reports earlier in the year indicated lagging home and auto
sales and a decline in new home construction. Furthermore, rising business
inventories (a frequent harbinger of a business slowdown) and weakening
retail sales lent additional credibility to the case for easier credit
conditions. By midyear, jobless claims were also on the rise and corporate
cost reduction programs continued to increase layoffs. But after the Fed
Funds rate was lowered, economic signals became mixed, and inflationary expect
ations, subdued. Accordingly, interest rates have stabilized.
More recently, however, economic strength has been reflected in some of
the indicators released. Inflation is moderate, but various sectors of the
economy such as consumer spending and housing appear to be picking up. While
it is expected that the stronger numbers will forestall any immediate easing
by the Federal Reserve Board, one should not rule out the possibility of
another Fed move before year end.
A word about inflation: Despite strong economic growth at the beginning
of the reporting period, inflation remained in check. We believe a
continuation of this moderating trend for prices appears likely, particularly
if the economy remains sluggish. This could be good news for bond prices
since easing inflation can result in falling interest rates. Declining
interest rates, often a corollary to slow business conditions, cause bond
prices to rise. Of course, there is no guarantee how the market will perform
at any time. Although we strive to maintain a high level of current tax
exempt income for the Fund, we always are very concerned with credit quality,
so we are mindful of the potential erosion in bond quality if the economy
slips back into a recession. We follow a policy that stresses strong credit
quality in the portfolio, a policy which seeks to protect bond values and
income streams. As you know, we manage portfolios with a long-term
perspective, aware that market conditions can change rapidly.
MARKET ENVIRONMENT
The municipal bond market, buffeted by six interest rate hikes by the
Federal Reserve Board in 1994, recovered strongly in 1995. Weaker than
expected December sales figures caused rates to tumble and this decline
persisted throughout the remainder of the reporting period. This summer's
rate cut confirmed what declining long-term interest rates had indicated all
year: Business conditions were weaker than monetary policymakers had thought.
If economic conditions remain sluggish, and Congress is able to arrive at an
acceptable budget accord, further Fed easing seems likely. We believe this
indicates a rather favorable outlook for bond markets in general. We are
certainly pleased by the good performance of late by the bond market and by
the Fund; however, we are wary that this bond market strength may be counting
too much on continued low inflation. Thus, while we remain fully invested in
this improving market, we are alert to the stimulatory effects of easing
monetary policy and are watchful for any signs of rekindling inflation.
The prospect of tax reform appears to be limiting the enthusiasm for tax
exempt securities. Since April, when serious flat tax and consumption tax
proposals began to surface, the municipal rally has lagged, resulting in an
increase in municipal yields as a percentage of comparable taxable bond
yields. Today, long-term municipal bonds are yielding nearly 90% of U.S.
Treasuries, which is a greater yield ratio than existed before the onset of
talk about tax reform. While it could be years before an actual change in the
tax code is adopted, the market's reaction so early in the proposal cycle
suggests that the ultimate legislation, if any, may have a less radical
effect on the market than feared.
THE PORTFOLIO
During the reporting period, the portfolio's structure has remained in
keeping with our view of interest rate trends during the period. We have kept
the duration of the Fund long in response to a perceived slowing of the
economy. While the decline in interest rates has fueled total return
performance, it paradoxically constitutes a primary threat to an
income-oriented Fund since, in this environment, the risk of early redemption
of high coupon securities rises dramatically. A central strategy during this
period has been to identify such securities and attempt to achieve a price
above the redemption value and reinvest proceeds at an attractive level of
income. Of course, past performance is no guarantee of future results.
Going forward, some movement away from the aggressive portfolio structure
will be made. While we do not envision a major sell-off, the upward movement
in prices will moderate and we believe that income will provide the bulk of
the returns to be seen during the balance of 1995.
The issuance of new tax exempt bonds continues at a lackluster pace
while, at the same time, a substantial number of outstanding bonds are being
retired. Therefore, our strategies are influenced and their implementations
limited, at times, by the fact that there exists a limited inventory of
securities from which to choose.
Our primary tasks - to protect principal, maintain liquidity and
distribute a high level of current tax exempt income to you - continue to
motivate our portfolio management decisions. The high level of volatility
exhibited by the market in recent years underscores the need to maintain a
disciplined and long-term focus.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 16, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
***Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the net asset
value per share at the end of the period.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
------------- -------------
<S> <C> <C>
MASSACHUSETTS-88.3%
Arlington 5%, 8/15/2001..................................................... $ 200,000 $ 204,274
Attleboro:
5.50%, 1/15/2001........................................................ 400,000 412,732
5.70%, 1/15/2002........................................................ 400,000 417,120
5.90%, 1/15/2004........................................................ 325,000 342,602
6%, 1/15/2005........................................................... 345,000 365,365
Belchertown, Refunding:
4.80%, 10/15/2001 (Insured; MBIA)....................................... 240,000 242,628
5%, 10/15/2002 (Insured; MBIA).......................................... 400,000 407,836
Boston:
6.10%, 7/1/1999 (Insured; MBIA)......................................... 250,000 264,720
6.20%, 7/1/2002......................................................... 865,000 936,164
Refunding 5.20%, 2/1/2004 (Insured; AMBAC).............................. 500,000 510,990
Revenue, Refunding (Boston City Hospital):
5.45%, 2/15/2004 (Insured; FHA)....................................... 500,000 498,305
5.45%, 8/15/2004 (Insured; FHA)....................................... 210,000 209,255
5.55%, 2/15/2005 (Insured; FHA)....................................... 295,000 293,914
Brockton, Refunding:
5.60%, 6/1/2001 (Insured; AMBAC)........................................ 255,000 267,844
5.70%, 6/1/2002 (Insured; AMBAC)........................................ 260,000 275,028
Brookline 5.20%, 9/1/2003................................................... 500,000 515,690
Canton Industrial Development Finance Authority, IDR
(General Signal Corp.) 5.625%, 12/1/2002................................ 510,000 518,568
Dartmouth 4.90%, 5/1/2002................................................... 200,000 203,938
Greater New Bedford Regional Refuse Management District:
4.75%, 5/1/1997......................................................... 815,000 813,362
5.10%, 5/1/2000......................................................... 240,000 237,574
Harwich 4.20%, 2/15/2001.................................................... 1,080,000 1,058,314
Haverhill 6.30%, 6/15/2002.................................................. 100,000 105,575
Holyoke, Refunding:
6.10%, 11/1/1998........................................................ 190,000 198,109
6.20%, 11/1/1999........................................................ 100,000 105,402
Lawrence 4.625%, 2/15/2005.................................................. 1,190,000 1,146,065
Lowell 5.60%, 4/1/2005...................................................... 1,530,000 1,591,720
Ludlow 6.90%, 10/15/2003.................................................... 100,000 114,665
Lynn, Refunding:
4.90%, 1/15/2005 (Insured; FSA)......................................... 1,210,000 1,200,998
5%, 1/15/2006........................................................... 1,185,000 1,174,572
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- -------------
MASSACHUSETTS (CONTINUED)
Massachusetts Bay Transportation Authority, Refunding:
6%, 3/1/2005............................................................ $ 1,000,000 $ 1,075,140
(General Transportation System) 5.50%, 3/1/2009......................... 1,000,000 998,070
Massachusetts Commonwealth:
Consolidated Loan:
5.25%, 6/1/1998....................................................... 100,000 102,418
5.75%, 5/1/2003....................................................... 500,000 530,215
6.20%, 6/1/2003....................................................... 85,000 92,338
5.375%, 7/1/2007...................................................... 3,000,000 3,029,700
Refunding 6%, 8/1/2010 (Insured; AMBAC)................................. 1,500,000 1,581,510
Massachusetts Convention Center Authority, Refunding
(Hynes Convention Center) 5.90%, 9/1/1998............................... 250,000 260,305
Massachusetts Education Loan Authority, Education Loan Revenue:
7.40%, 6/1/1998 (LOC; Rabobank Nederland) (a)........................... 280,000 285,267
7.55%, 1/1/2002 (Insured; MBIA)......................................... 860,000 949,294
8%, 6/1/2002 (LOC; Rabobank Nederland) (a).............................. 90,000 94,245
Massachusetts Health and Educational Facilities Authority, Revenue:
(Bentley College) 5.50%, 7/1/2003 (Insured; MBIA)....................... 500,000 519,940
(Beth Israel Hospital) 5.10%, 7/1/2000 (Insured; AMBAC)................. 300,000 307,737
(Brigham and Womens Hospital) 4.90%, 7/1/2005........................... 1,840,000 1,777,550
(Cape Cod Health System) 5%, 11/15/2002
(Insured; College Construction Loan Insurance Association)............ 1,000,000 1,007,090
(Central New England Health System) 5.75%, 8/1/2003..................... 1,000,000 983,840
(New England Medical Center Hospitals):
5.60%, 7/1/1999 (Insured; FGIC)....................................... 100,000 103,859
4.90%, 7/1/2006 (Insured; MBIA)....................................... 1,365,000 1,336,977
(Refunding - Baystate Medical Center) 4.90%, 7/1/2005 (Insured; FGIC)... 1,000,000 984,700
(Refunding - Massachusetts General Hospital):
4.85%, 7/1/2004 (Insured; AMBAC)...................................... 1,000,000 997,810
6%, 7/1/2004 (Insured; AMBAC)......................................... 1,875,000 2,023,706
(Refunding - Melrose-Wakefield Hospital):
5.50%, 7/1/1999....................................................... 200,000 203,368
5.80%, 7/1/2001....................................................... 100,000 102,393
(Smith College) 5.75%, 7/1/2016......................................... 1,000,000 987,960
(University of Massachusetts Medical School Research Project)
5.30%, 7/1/2002 (Insured; College Construction Loan Insurance Association) 400,000 412,088
Massachusetts Housing Finance Agency:
(Holy Cross College -11) 6%, 11/1/2002.................................. 100,000 107,257
Housing Projects, Refunding:
5.20%, 4/1/2000....................................................... 800,000 817,696
5.25%, 4/1/2002 (Insured; AMBAC)...................................... 1,000,000 1,027,130
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- -------------
MASSACHUSETTS (CONTINUED)
Massachusetts Housing Finance Agency (continued):
Housing Projects, Refunding (continued):
5.35%, 10/1/2003 (Insured; AMBAC)..................................... $ 1,750,000 $ 1,802,780
6.30%, 10/1/2013...................................................... 2,000,000 2,008,480
Residential Development 5.25%, 5/15/2001 (Collateralized; FNMA)......... 1,000,000 1,024,380
SFHR 6.90%, 12/1/2001................................................... 95,000 99,459
Massachusetts Industrial Finance Agency, Revenue:
(Museum of Fine Arts-Boston) 6.20%, 1/1/2000 (Insured; MBIA)............ 100,000 103,810
(Refunding - Combined Jewish Philanthropies) 5.65%, 2/1/2003 (Insured; AMBAC) 795,000 826,355
(Refunding - Refusetech, Inc. Project) 6.15%, 7/1/2002.................. 1,800,000 1,840,644
Massachusetts Municipal Wholesale Electric Co., Power Supply Systems Revenue:
5.875%, 7/1/2003........................................................ 500,000 528,125
Refunding:
6.30%, 7/1/2001....................................................... 100,000 107,404
6.40%, 7/1/2002....................................................... 100,000 108,469
Massachusetts Water Pollution Abatement Trust, Water Pollution Abatement
Revenue:
(MWRA Loan Program) 4.75%, 2/1/2002..................................... 500,000 495,655
(Pool Loan Program) 5.70%, 2/1/2012..................................... 2,260,000 2,252,655
New Bedford 5.60%, 3/1/2003................................................. 600,000 607,956
New England Education Loan Marketing Corp., Student Loan Revenue:
6%, 3/1/2002............................................................ 500,000 522,685
6.60%, 9/1/2002......................................................... 100,000 108,227
6.90%, 11/1/2009........................................................ 1,000,000 1,081,730
Newton:
4.40%, 4/15/2002........................................................ 600,000 600,834
4.50%, 4/15/2003........................................................ 575,000 575,713
North Andover:
6.50%, 11/1/2004........................................................ 300,000 331,362
6.55%, 11/1/2005........................................................ 300,000 330,543
North Reading, Refunding 6.40%, 6/15/2002 (Insured; MBIA)................... 200,000 220,688
Pioneer Valley Transit Authority, COP 5.70%, 2/1/2003 (Insured; CGIC)....... 1,240,000 1,302,384
Plymouth County, COP 6.50%, 10/1/2001....................................... 200,000 211,050
Springfield:
4.90%, 1/15/2002 (Insured; MBIA) ....................................... 850,000 860,030
Refunding:
6%, 9/1/2001.......................................................... 500,000 520,140
4.90%, 9/1/2002 (Insured; MBIA)....................................... 515,000 521,613
Swansea 6.60%, 1/15/2005.................................................... 100,000 109,097
Taunton 5.25%, 7/15/2002 (Insured; AMBAC)................................... 100,000 103,926
Webster 6.50%, 9/1/2005 (Insured; AMBAC).................................... 310,000 340,287
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- -------------
MASSACHUSETTS (CONTINUED)
Westfield:
4.20%, 9/1/2000 (Insured; FSA).......................................... $ 500,000 $ 493,860
4.30%, 9/1/2001 (Insured; FSA).......................................... 500,000 491,645
Refunding 4.50%, 12/15/2003 (Insured; MBIA)............................. 960,000 936,758
Westford, Refunding 5%, 10/15/2004 (Insured; AMBAC)......................... 795,000 809,453
Weymouth 6%, 6/15/2001...................................................... 100,000 105,540
Woods Hole, Marthas Vineyard & Nantucket 6.10%, 3/1/2005.................... 690,000 738,680
Worcester:
5.80%, 8/1/1998......................................................... 200,000 205,554
5.80%, 8/1/1999......................................................... 250,000 258,120
6%, 8/1/2003............................................................ 545,000 570,942
U. S. RELATED-11.7%
Guam Airport Authority, Revenue 6%, 10/1/2000............................... 1,100,000 1,132,967
Guam Government 4.90%, 11/15/2004........................................... 5,910,000 5,665,976
Puerto Rico Commonwealth Highway and Transportation Authority,
Highway Revenue, Refunding 5.875%, 7/1/1999............................. 100,000 104,905
Puerto Rico Housing Bank and Finance Agency, Refunding
(Commonwealth Approved Subsidy Prepayment) 5%, 12/1/2002................ 1,240,000 1,218,672
---------
TOTAL INVESTMENTS (cost $68,607,119)........................................ $69,612,485
===========
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
CGIC Capital Guaranty Insurance Corporation IDR Industrial Development Revenue
COP Certificate of Participation LOC Letter of Credit
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FHA Federal Housing Administration Insurance Corporation
FNMA Federal National Mortgage Association SFHR Single Family Housing Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (B) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ---------- --------- ------------------ -------------------
<S> <C> <C> <C>
AAA Aaa AAA 46.7%
AA Aa AA 4.0
A A A 26.0
BBB Baa BBB 23.3
-------
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>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $68,607,119)-see statement...................................... $69,612,485
Interest receivable..................................................... 1,074,646
Prepaid expenses........................................................ 13,429
----------
70,700,560
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 26,863
Due to Custodian........................................................ 132,511
Payable for shares of Beneficial Interest redeemed...................... 7,087
Accrued expenses and other liabilities.................................. 43,817 210,278
---------- ---------
NET ASSETS.................................................................. $70,490,282
===========
REPRESENTED BY:
Paid-in capital......................................................... $72,261,560
Accumulated undistributed investment income-net......................... 8,584
Accumulated net realized (loss) on investments.......................... (2,785,228)
Accumulated net unrealized appreciation on investments-Note 3........... 1,005,366
----------
NET ASSETS at value applicable to 5,336,058 outstanding shares of
Beneficial Interest, equivalent to $13.21 per share
(unlimited number of $.001 par value shares authorized)................. $70,490,282
===========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $1,847,853
EXPENSES:
Management fee-Note 2(a).............................................. $ 210,134
Shareholder servicing costs-Note 2(b)................................. 56,893
Professional fees..................................................... 13,421
Trustees' fees and expenses-Note 2(c)................................. 7,752
Custodian fees........................................................ 3,784
Registration fees..................................................... 3,142
Prospectus and shareholders' reports.................................. 2,063
Miscellaneous......................................................... 13,560
--------
310,749
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 66,888
--------
TOTAL EXPENSES.................................................. 243,861
----------
INVESTMENT INCOME-NET........................................... 1,603,992
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (164,585)
Net unrealized appreciation on investments.............................. 2,303,696
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 2,139,111
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $3,743,103
============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MARCH 31, SEPTEMBER 30, 1995
1995 (UNAUDITED)
-------------- ----------------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 3,749,907 $ 1,603,992
Net realized (loss) on investments................................... (2,620,069) (164,585)
Net unrealized appreciation on investments for the period............ 1,403,906 2,303,696
----------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 2,533,744 3,743,103
----------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................ (3,749,907) (1,595,408)
Net realized gain on investments..................................... (91,423) --
----------- -------------
TOTAL DIVIDENDS.................................................... (3,841,330) (1,595,408)
----------- -------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................ 16,540,755 6,697,165
Dividends reinvested................................................. 2,833,098 1,163,876
Cost of shares redeemed.............................................. (40,811,502) (8,021,076)
----------- -------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS..... (21,437,649) (160,035)
----------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ (22,745,235) 1,987,660
NET ASSETS:
Beginning of period.................................................. 91,247,857 68,502,622
----------- -------------
End of period (including undistributed investment income-net;
$8,584 on September 30, 1995)...................................... $ 68,502,622 $ 70,490,282
=========== =============
SHARES SHARES
----------- -------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 1,300,469 512,867
Shares issued for dividends reinvested............................... 223,568 88,919
Shares redeemed...................................................... (3,245,315) (613,865)
----------- -------------
NET (DECREASE) IN SHARES OUTSTANDING............................... (1,721,278) (12,079)
=========== =============
</TABLE>
See independent accountants' review report and notes to financial statements.
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.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED MARCH 31, SEPTEMBER 30, 1995
------------------------------
PER SHARE DATA: 1993(1) 1994 1995 (UNAUDITED)
------- ------- ------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $12.50 $13.15 $12.91 $12.81
------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net............................. .57 .67 .61 .30
Net realized and unrealized gain (loss) on investments .65 (.24) (.08) .40
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS................ 1.22 .43 .53 .70
------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net.............. (.57) (.67) (.61) (.30)
Dividends from net realized gain on investments... -- -- (.02) --
------- ------- ------- -------
TOTAL DISTRIBUTIONS............................. (.57) (.67) (.63) (.30)
------- ------- ------- -------
Net asset value, end of period.................... $13.15 $12.91 $12.81 $13.21
======= ======= ======= =======
TOTAL INVESTMENT RETURN............................... 12.05%(2) 3.18% 4.23% 10.95%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... -- .06% .49% .69%(2)
Ratio of net investment income to average net assets 5.17%(2) 4.90% 4.82% 4.57%(2)
Decrease reflected in above expense ratios due
to undertakings by the Manager.................. 1.59%(2) .92% .42% .19%(2)
Portfolio Turnover Rate........................... 9.66%(3) 4.64% 9.41% 14.01%(3)
Net Assets, end of period (000's Omitted)......... $34,951 $91,248 $68,503 $70,490
(1) From May 28, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
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. Premier Mutual
Fund Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
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, if any, 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.
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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.
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 had
undertaken, from April 1, 1995 through July 26, 1995 to reduce the management
fee paid by the Fund, to the extent that the Fund's aggregate expenses
(exclusive of certain expenses as described above) exceeded specified annual
percentages of the Fund's average daily net assets. The Manager has currently
undertaken from July 27, 1995 through March 31, 1996 to reduce the management
fee paid by or reimburse such excess expenses of the Fund, to the extent that
the Fund's aggregate annual expenses (exclusive of certain expenses as
described above) exceed an annual rate of .80 of 1% of the average daily
value of the Fund's net assets. The reduction in management fee, pursuant to
the undertakings, amounted to $66,888 for the six months ended September 30,
1995.
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, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the Fund's average daily
net assets for certain allocated expenses of providing personal services
and/or maintaining shareholder accounts. The services provided may include
personal services relating to shareholder 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, 1995, the Fund was charged an
aggregate of $21,406 pursuant to the Shareholder Services Plan.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund 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 $19,725,485 and $19,943,462, respectively, for the six months
ended September 30, 1995, and consisted entirely of long-term and short-term
municipal investments.
At September 30, 1995, accumulated net unrealized appreciation on
investments was $1,005,366, consisting of $1,485,557 gross unrealized
appreciation and $480,191 gross unrealized depreciation.
At September 30, 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
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, 1995, and the related
statements of operations and changes in net assets and financial highlights
for the six month period ended September 30, 1995. 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, 1995 and financial highlights for each of the three years in the
period ended March 31, 1995 and in our report dated April 28, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
November 2, 1995
[Dreyfus lion "d" 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. 268SA959
[Dreyfus logo]
Massachusetts
Intermediate
Municipal
Bond Fund
Semi-Annual Report
September 30, 1995
