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 annual reporting
period ended March 31, 1996, your portfolio achieved a total return of 7.22%,
which includes share price changes and interest income.* Income dividends
exempt from Federal and Commonwealth of Massachusetts personal income taxes
of approximately $.586 per share were paid to shareholders.** This is
equivalent to an annualized tax-free distribution rate per share of 4.47%.***
THE ECONOMY
Fresh signs of economic growth appeared in the first quarter of this
year. There were encouraging reports of strength in the housing market -
sales of new homes and new home construction surged in February. Factory
orders increased and order backlogs rose in January for the fifth consecutive
month. At present, there are indications that the labor market may be
tightening. Employment is rising and initial claims for unemployment
insurance are lessening. Some increases in real wages may result, a possibility
well worth noting since worker wages are emerging as a political issue in
this year's election. The surprisingly strong employment figures in February
caused a sharp rise in interest rates. As a result, fixed-income returns for
the first quarter of this year were negative.
Several factors that temporarily depressed economic activity have ended.
With the arrival of spring, the severe winter weather which suppressed
construction and discouraged consumer shopping is over. In addition, the
17-day strike at two General Motors brake-parts plants has been settled. This
strike had nearly resulted in a complete shutdown of GM North American
manufacturing.
Apparently satisfied with the pace of economic growth, the Federal
Reserve Board left the Federal Funds rate unchanged in March. Over the past
12 months, the Fed has reduced the level of short-term interest rates three
times to spur the sluggish economy, the last reduction occurring on January
31, 1996.
Nevertheless, we are reluctant to paint an overly optimistic business
picture since much economic data still remains mixed. Business capital
spending has been an important stimulant to economic growth over the past few
years, particularly in light of the retrenchment in consumer spending. A
recent survey by the Commerce Department revealed that businesses plan only
modest increases in spending on new buildings and equipment this year
compared to 1995. Overall, the survey indicated that capital spending would
rise only 1.5% compared to last year's growth rate of 8.1%. The survey also
points out a significant divergence between the spending plans of
manufacturing companies and those of retailers and wholesalers. Influenced by
strong export growth, capital spending by manufacturers is estimated to rise
7.2%. Conversely, weak consumer spending has resulted in retailers and
wholesalers cutting their capital spending estimates by 4%. The more cautious
approach to business spending may be an indication that overall economic
growth in 1996 will be modest.
THE MARKET
The municipal market experienced a dramatic downturn late in the first
quarter. The weakness continues as this letter is being written, although
some improvement has been seen. The expectations of faster economic growth
combined with rising commodity prices raised the specter of future rising
inflation - just what long-term bond investors fear most.
The most recent market peak in prices was in mid-February with yields on
good quality 10-year bonds trading around 4.50%. By early April, prices had
declined and yield levels had risen to 5.15%. The last time we experienced a
downward move in the market of similar magnitude was in 1994.
Markets rarely move in one direction for an extended period of time, so
we are optimistic that much of the market correction is behind us. We remain
cautious, however, awaiting confirmation of a market bottom before pursuing a
more aggressive strategy.
THE PORTFOLIO
For some time now, the portfolio has been aggressively postured with
longer maturity investments to provide a high level of tax exempt income.
This maturity structure, being generally in the 8-10 year range, caused a
negative total return of about 1% over the first quarter of 1996. This
occurred because as bond prices fell, the Fund's net asset value was affected
accordingly. However, the total return for the year ended March 31, 1996 was
positive at 7.22%. In addition, we continue to pursue an investment strategy
that seeks to provide an attractive yield for the intermediate-term investor.
The economy is at a crossroads where growth is concerned. Going forward,
we anticipate continued volatility until the future of economic growth is
made more clear. In this environment, we are currently increasing our cash
position and the defensive structure of the portfolio. This represents a
shift in our thinking toward a more conservative structure, but such a change
appears prudent given the uncertainty present in the economy and the
potential negative volatility should economic growth expand rapidly. We are
of course, poised to return to a more aggressive stance if an economic
slowdown becomes evident.
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
April 15, 1996
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.
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND MARCH 31, 1996
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
$13,116
Lehman Brothers
10-Year Municipal
Bond Index*
$12,551
Dreyfus Massachusetts
Intermediate
Municipal Bond Fund
*Source: Lehman Brothers]
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (6/26/92)
MARCH 31, 1996 TO MARCH 31, 1996
__________ ______________
7.22% 6.22%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in 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 shown in the line graph 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. These
factors can contribute to the Index potentially outperforming the Fund.
Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
<TABLE>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-90.3% AMOUNT VALUE
_______ ______
<S> <C> <C>
MASSACHUSETTS-88.6%
Arlington 5%, 8/15/2001..................................................... $ 200,000 $ 204,098
Attleboro:
5.50%, 1/15/2001........................................................ 400,000 411,836
5.70%, 1/15/2002........................................................ 400,000 414,920
5.90%, 1/15/2004........................................................ 325,000 340,457
6%, 1/15/2005........................................................... 345,000 363,009
Belchertown, Refunding:
4.80%, 10/15/2001 (Insured; MBIA)....................................... 240,000 242,731
5%, 10/15/2002 (Insured; MBIA).......................................... 400,000 407,472
Boston:
6.10%, 7/1/1999 (Insured; MBIA)......................................... 250,000 263,087
6.20%, 7/1/2002......................................................... 865,000 932,358
Refunding 5.20%, 2/1/2004 (Insured; AMBAC).............................. 500,000 510,120
Revenue, Refunding (Boston City Hospital):
5.45%, 2/15/2004 (Insured; FHA)....................................... 500,000 502,905
5.45%, 8/15/2004 (Insured; FHA)....................................... 210,000 211,220
5.55%, 2/15/2005 (Insured; FHA)....................................... 295,000 296,708
Brockton, Refunding:
5.60%, 6/1/2001 (Insured; AMBAC)........................................ 255,000 266,781
5.70%, 6/1/2002 (Insured; AMBAC)........................................ 260,000 273,985
Brookline 5.20%, 9/1/2003................................................... 500,000 514,075
Canton Industrial Development Finance Authority, IDR
(General Signal Corp.) 5.625%, 12/1/2002................................ 510,000 517,839
Dartmouth 4.90%, 5/1/2002................................................... 200,000 203,626
Greater New Bedford Regional Refuse Management District:
4.75%, 5/1/1997......................................................... 815,000 819,214
5.10%, 5/1/2000......................................................... 240,000 235,913
Haverhill 6.30%, 6/15/2002.................................................. 100,000 104,162
Holyoke, Refunding:
6.10%, 11/1/1998........................................................ 190,000 197,908
6.20%, 11/1/1999........................................................ 100,000 105,199
Lawrence 4.625%, 2/15/2005.................................................. 1,190,000 1,150,397
Lowell 5.60%, 4/1/2005...................................................... 1,530,000 1,586,916
Ludlow 6.90%, 10/15/2003.................................................... 100,000 113,449
Lynn, Refunding:
4.90%, 1/15/2005 (Insured; FSA)......................................... 1,210,000 1,199,945
5%, 1/15/2006........................................................... 1,185,000 1,177,214
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ ______
MASSACHUSETTS (CONTINUED)
Massachusetts Bay Transportation Authority, Refunding:
6%, 3/1/2005............................................................ $ 1,000,000 $ 1,068,630
(General Transportation System) 5.50%, 3/1/2009......................... 1,000,000 1,004,090
Massachusetts Commonwealth:
Consolidated Loan:
5.25%, 6/1/1998....................................................... 100,000 102,267
5.75%, 5/1/2003....................................................... 500,000 527,465
6.20%, 6/1/2003....................................................... 85,000 91,706
4.875%, 10/1/2013..................................................... 2,500,000 2,279,900
Refunding 6%, 8/1/2010 (Insured; AMBAC)................................. 1,500,000 1,602,075
Massachusetts Convention Center Authority, Refunding
(Hynes Convention Center) 5.90%, 9/1/1998............................... 250,000 259,622
Massachusetts Education Loan Authority, Education Loan Revenue:
7.40%, 6/1/1998 (LOC; Rabobank Nederland) (a)........................... 235,000 237,204
7.55%, 1/1/2002 (Insured; MBIA)......................................... 820,000 895,555
8%, 6/1/2002 (LOC; Rabobank Nederland) (a).............................. 90,000 92,425
Massachusetts Health and Educational Facilities Authority, Revenue:
(Bentley College) 5.50%, 7/1/2003 (Insured; MBIA)....................... 500,000 519,795
(Beth Israel Hospital) 5.10%, 7/1/2000 (Insured; AMBAC)................. 300,000 307,056
(Brigham and Womens Hospital) 4.90%, 7/1/2005........................... 1,840,000 1,811,112
(Cape Cod Health System) 5%, 11/15/2002
(Insured; College Construction Loan Insurance Association)............ 1,000,000 1,014,870
(Central New England Health System) 5.75%, 8/1/2003..................... 1,000,000 969,690
(New England Medical Center Hospitals):
5.60%, 7/1/1999 (Insured; FGIC)....................................... 100,000 103,641
4.90%, 7/1/2006 (Insured; MBIA) (b)................................... 1,365,000 1,334,670
(Refunding - Baystate Medical Center) 4.90%, 7/1/2005 (Insured; FGIC)... 1,000,000 986,980
(Refunding - Massachusetts General Hospital):
4.85%, 7/1/2004 (Insured; AMBAC)...................................... 1,000,000 989,610
6%, 7/1/2004 (Insured; AMBAC) (b)..................................... 1,875,000 2,014,162
(Refunding - Melrose-Wakefield Hospital):
5.50%, 7/1/1999....................................................... 200,000 203,614
5.80%, 7/1/2001....................................................... 100,000 102,997
(Smith College) 5.75%, 7/1/2016......................................... 1,000,000 998,120
(University of Massachusetts Medical School Research Project)
5.30%, 7/1/2002 (Insured; College Construction Loan Insurance Association) 400,000 411,100
Massachusetts Housing Finance Agency:
(Holy Cross College-11) 6%, 11/1/2002................................... 100,000 106,821
Housing Projects, Refunding:
5.20%, 4/1/2000....................................................... 800,000 814,328
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ ______
MASSACHUSETTS (CONTINUED)
Massachusetts Housing Finance Agency (continued):
Housing Projects, Refunding (continued):
6.30%, 10/1/2013...................................................... $ 2,000,000 $ 2,009,520
SFHR:
6.90%, 12/1/2001...................................................... 95,000 98,400
6%, 12/1/2015 (Insured; AMBAC) (c).................................... 4,000,000 4,002,920
Massachusetts Industrial Finance Agency, Revenue:
(Museum of Fine Arts-Boston) 6.20%, 1/1/2000 (Insured; MBIA)............ 100,000 103,973
(Refunding - Combined Jewish Philanthropies) 5.65%, 2/1/2003 (Insured; AMBAC) 795,000 831,824
(Refunding - Refusetech, Inc. Project) 6.15%, 7/1/2002.................. 1,800,000 1,839,564
Massachusetts Municipal Wholesale Electric Co., Power Supply Systems Revenue:
5.875%, 7/1/2003........................................................ 500,000 524,755
5%, 7/1/2017 (Insured; AMBAC)........................................... 1,450,000 1,306,740
Refunding:
6.30%, 7/1/2001....................................................... 100,000 106,647
6.40%, 7/1/2002....................................................... 100,000 107,710
5%, 7/1/2013 (Insured; MBIA).......................................... 1,890,000 1,744,753
Massachusetts Water Pollution Abatement Trust, Water Pollution Abatement
Revenue
(Pool Loan Program) 5.70%, 2/1/2012..................................... 2,260,000 2,272,701
Milford 5.10%, 12/15/2010................................................... 1,300,000 1,249,807
New Bedford 5.60%, 3/1/2003................................................. 600,000 607,170
New England Education Loan Marketing Corp., Student Loan Revenue:
6%, 3/1/2002............................................................ 500,000 521,175
6.60%, 9/1/2002......................................................... 100,000 107,839
6.90%, 11/1/2009........................................................ 1,000,000 1,083,240
Newton:
4.40%, 4/15/2002........................................................ 600,000 599,832
4.50%, 4/15/2003........................................................ 575,000 575,506
North Andover:
6.50%, 11/1/2004........................................................ 300,000 329,670
6.55%, 11/1/2005........................................................ 300,000 328,728
North Reading, Refunding 6.40%, 6/15/2002 (Insured; MBIA)................... 200,000 218,778
Pioneer Valley Transit Authority, COP 5.70%, 2/1/2003 (Insured; CGIC) (b)... 1,240,000 1,301,008
Plymouth County, COP 6.50%, 10/1/2001....................................... 200,000 213,788
Springfield:
4.90%, 1/15/2002 (Insured; MBIA)........................................ 850,000 859,120
Refunding:
6%, 9/1/2001.......................................................... 500,000 515,095
4.90%, 9/1/2002 (Insured; MBIA)....................................... 515,000 521,062
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ ______
MASSACHUSETTS (CONTINUED)
Swansea 6.60%, 1/15/2005.................................................... $ 100,000 $ 108,717
Taunton 5.25%, 7/15/2002 (Insured; AMBAC)................................... 100,000 103,428
Webster 6.50%, 9/1/2005 (Insured; AMBAC).................................... 310,000 337,426
Westfield:
4.20%, 9/1/2000 (Insured; FSA).......................................... 500,000 493,855
Refunding 4.50%, 12/15/2003 (Insured; MBIA)............................. 960,000 939,437
Westford, Refunding 5%, 10/15/2004 (Insured; AMBAC)......................... 795,000 805,184
Weymouth 6%, 6/15/2001...................................................... 100,000 105,137
Woods Hole, Marthas Vineyard & Nantucket 6.10%, 3/1/2005.................... 690,000 735,402
Worcester:
5.80%, 8/1/1998......................................................... 200,000 206,280
5.80%, 8/1/1999......................................................... 250,000 259,093
6%, 8/1/2003............................................................ 545,000 572,294
U. S. RELATED-1.7%
Guam Airport Authority, Revenue 6%, 10/1/2000............................... 1,100,000 1,131,834
Puerto Rico Commonwealth Highway and Transportation Authority,
Highway Revenue, Refunding 5.875%, 7/1/1999............................. 100,000 104,113
_____
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $63,473,774).................... $64,300,574
======
SHORT-TERM MUNICIPAL INVESTMENTS -9.7%
MASSACHUSETTS-9.1%
Massachusetts Commonwealth, VRDN 3.50% (d).................................. $ 4,500,000 $ 4,500,000
Massachusetts Health and Educational Facilities Authority, Revenue, VRDN
(Saint Elizabeth's) 3.40% (Insured; FSA) (d)............................ 2,000,000 2,000,000
U.S. RELATED-.6%
Puerto Rico Commonwealth Government Development Bank, Refunding, VRDN
2.80% (LOC; Credit Suisse International) (a,d).......................... 400,000 400,000
______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $6,900,000).................... $ 6,900,000
======
TOTAL INVESTMENTS-100.0%
(cost $70,373,774)...................................................... $71,200,574
======
</TABLE>
<TABLE>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation IDR Industrial Development Revenue
CGIC Capital Guaranty Insurance Company LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company SFHR Single Family Housing Revenue
FHA Federal Housing Administration VRDN Variable Rate Demand Notes
FSA Financial Security Assurance
Insurance Corporation
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_____ _____ ___________ ____________
<S> <C> <C>
AAA Aaa AAA 53.9%
AA Aa AA 3.2
A A A 22.9
BBB Baa BBB 13.1
F1+ & F1 MIG1, VMG1 & P1 SP1 & A1 6.9
____
100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letter of credit.
(b) Wholly held by the custodian in a segregated account as collateral
for a delayed delivery security.
(c) Purchased on a delayed delivery basis.
(d) 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.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
See notes to financial statements.
<TABLE>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $70,373,774)-see statement...................................... $71,200,574
Cash.................................................................... 110,457
Interest receivable..................................................... 930,019
Prepaid expenses........................................................ 8,224
______
72,249,274
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 27,708
Payable for investment securities purchased............................. 4,021,333
Payable for shares of Beneficial Interest redeemed...................... 5,823
Accrued expenses and other liabilities.................................. 65,547 4,120,411
_____ ______
NET ASSETS.................................................................. $68,128,863
======
REPRESENTED BY:
Paid-in capital......................................................... $70,222,974
Accumulated undistributed investment income-net......................... 16,239
Accumulated net realized (loss) on investments.......................... (2,937,150)
Accumulated net unrealized appreciation on investments-Note 3........... 826,800
______
NET ASSETS at value applicable to 5,182,617 shares outstanding (unlimited
number of $.001 par value shares of Beneficial Interest authorized)..... $68,128,863
======
NET ASSET VALUE, offering and redemption price per share
($68,128,863 / 5,182,617 shares)........................................ $13.15
======
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1996
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $3,661,011
EXPENSES:
Management fee-Note 2(a).............................................. $ 421,431
Shareholder servicing costs-Note 2(b)................................. 109,193
Professional fees..................................................... 32,651
Trustees' fees and expenses-Note 2(c)................................. 18,745
Custodian fees........................................................ 7,676
Prospectus and shareholders' reports.................................. 4,943
Registration fees..................................................... 3,442
Miscellaneous......................................................... 25,991
_____
TOTAL EXPENSES.................................................. 624,072
Less-reduction in management fee due to undertakings-Note 2(a)........ 98,481
_____
NET EXPENSES.................................................... 525,591
_____
INVESTMENT INCOME-NET........................................... 3,135,420
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (316,507)
Net unrealized appreciation on investments.............................. 2,125,130
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 1,808,623
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $4,944,043
======
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
________________________________
1995 1996
_______ _______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 3,749,907 $ 3,135,420
Net realized (loss) on investments...................................... (2,620,069) (316,507)
Net unrealized appreciation on investments for the year................. 1,403,906 2,125,130
______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 2,533,744 4,944,043
______ ______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (3,749,907) (3,119,181)
Net realized gain on investments........................................ (91,423) _
______ ______
TOTAL DIVIDENDS....................................................... (3,841,330) (3,119,181)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 16,540,755 12,306,338
Dividends reinvested.................................................... 2,833,098 2,284,138
Cost of shares redeemed................................................. (40,811,502) (16,789,097)
______ ______
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........ (21,437,649) (2,198,621)
______ ______
TOTAL (DECREASE) IN NET ASSETS.................................... (22,745,235) (373,759)
NET ASSETS:
Beginning of year....................................................... 91,247,857 68,502,622
______ ______
End of year (including undistributed investment income-net;
$16,239 on March 31, 1996)............................................ $ 68,502,622 $ 68,128,863
====== ======
SHARES SHARES
______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 1,300,469 933,252
Shares issued for dividends reinvested.................................. 223,568 172,921
Shares redeemed......................................................... (3,245,315) (1,271,693)
______ ______
NET (DECREASE) IN SHARES OUTSTANDING.................................. (1,721,278) (165,520)
====== ======
</TABLE>
See 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 year indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
YEAR ENDED MARCH 31,
________________________________________________
PER SHARE DATA: 1993(1) 1994 1995 1996
____ ____ ____ ____
<S> <C> <C> <C> <C>
Net asset value, beginning of year....................... $12.50 $13.15 $12.91 $12.81
____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net.................................... .57 .67 .61 .59
Net realized and unrealized gain (loss) on investments... .65 (.24) (.08) .34
____ ____ ____ ____
TOTAL FROM INVESTMENT OPERATIONS....................... 1.22 .43 .53 .93
____ ____ ____ ____
DISTRIBUTIONS:
Dividends from investment income-net..................... (.57) (.67) (.61) (.59)
Dividends from net realized gain on investments.......... - - (.02) -
____ ____ ____ ____
TOTAL DISTRIBUTIONS.................................... (.57) (.67) (.63) (.59)
____ ____ ____ ____
Net asset value, end of year............................. $13.15 $12.91 $12.81 $13.15
==== ==== ==== ====
TOTAL INVESTMENT RETURN...................................... 12.05%(2) 3.18% 4.23% 7.22%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................. - .06% .49% .75%
Ratio of net investment income to average net assets..... 5.17%(2) 4.90% 4.82% 4.45%
Decrease reflected in above expense ratios due to undertakings
by the Manager......................................... 1.59%(2) .92% .42% .14%
Portfolio Turnover Rate.................................. 9.66%(3) 4.64% 9.41% 31.81%
Net Assets, end of year (000's Omitted).................. $34,951 $91,248 $68,503 $68,129
(1) From May 28, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
</TABLE>
See notes to financial statements.
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Massachusetts Intermediate Municipal Bond Fund (the "Fund") is
registered under the Investment Company Act of 1940 ("Act") as a
non-diversified open-end management investment company. The Fund's investment
objective is to provide an investor with as high a level of current income
exempt from Federal and Massachusetts income taxes as is consistent with the
preservation of capital. The Dreyfus Corporation ("Manager") serves as the
Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. 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.
(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 (CONTINUED)
The Fund has an unused capital loss carryover of approximately $2,742,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1996. The
carryover does not include net realized securities losses from November 1,
1995 through March 31, 1996 which are treated, for Federal income tax purposes,
as arising in fiscal 1997. If not applied, $432,000 of the carryover expires
in fiscal 2003 and $2,310,000 of the carryover expires in fiscal 2004.
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 value
of the Fund's average daily 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, 1997 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 value of the
Fund's average daily net assets. The reduction in management fee, pursuant to
the undertakings, amounted to $98,481 for the year ended March 31, 1996.
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 value 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 year ended March 31, 1996, the Fund was charged an aggregate of
$41,683 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $13,198 for the period from
December 1, 1995 through March 31, 1996.
(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.
DREYFUS MASSACHUSETTS INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the year ended March 31, 1996,
amounted to $21,641,813 and $25,428,880, respectively.
At March 31, 1996, accumulated net unrealized appreciation on investments
was $826,800, consisting of $1,359,597 gross unrealized appreciation and
$532,797 gross unrealized depreciation.
At March 31, 1996, 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, 1996, 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, 1996 by correspondence with the custodian
and brokers. 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, 1996, 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 amd Young LLP signature logo]
New York, New York
May 2, 1996
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, 1996 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 1996 calendar year
on Form 1099-DIV which will be mailed by January 31, 1997.
[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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 268AR963
[Dreyfus logo]
Massachusetts
Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1996
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 |
| 3/31/96 | 13,116 | 12,551 |
|---------------------------------------------------|
* Source: Lehman Brothers
