Dreyfus Massachusetts Intermediate Municipal Bond Fund
SEMIANNUAL REPORT September 30, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
14 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Massachusetts
Intermediate Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Massachusetts
Intermediate Municipal Bond Fund, covering the six-month period from April 1,
1999 through September 30, 1999. Inside, you'll find valuable information about
how the fund was managed during the reporting period, including a discussion
with the fund's portfolio manager, Monica Wieboldt.
When the reporting period began, evidence had emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might re-emerge caused the Federal Reserve Board to raise short-term interest
rates twice during the summer of 1999, effectively offsetting most of last fall'
s interest-rate cuts. Higher interest rates led to some erosion of municipal
bond prices, especially toward the end of the reporting period.
In this environment, however, the yields of tax-exempt bonds have recently been
quite attractive compared to the after-tax yields of taxable bonds of comparable
maturity and credit quality. This is especially true for investors in the higher
federal income tax brackets.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Massachusetts Intermediate Municipal
Bond Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 15, 1999
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
How did Dreyfus Massachusetts Intermediate Municipal Bond Fund perform during
the period?
The portfolio produced a -1.46% total return(1) over the six-month period ended
September 30, 1999, compared with a total return of -2.22% for the Massachusetts
Intermediate Municipal Debt Funds category average over the same period.(2)
What is the fund's investment approach?
The fund' s objective is to seek as high a level of income exempt from federal
and Massachusetts state income taxes as is consistent with the preservation of
capital. We also seek to provide a competitive total return consistent with this
income objective.
In pursuing these goals, we employ two primary strategies. First, we tactically
manage the portfolio's average duration -- a measure of sensitivity to changes
in interest rates -- in anticipation of temporary supply-and-demand adjustments.
If we expect the supply of newly issued bonds to increase, we may reduce the
portfolio' s average duration to make cash available for the purchase of higher
yielding securities. Conversely, if we expect demand for municipal bonds to
surge at a time when we anticipate little issuance, we may increase the
portfolio' s average duration to maintain current yields for as long as
practical.
Second, we attempt to add value by selecting tax-exempt bonds that we believe
are the most likely to provide an attractive total return.
What other factors influenced the fund's performance?
The fund was affected by rising interest rates over the past six months.
Economies in Japan and Southeast Asia appear to have begun to recover, and the
growth of the U.S. economy has been stronger than most analysts expected. This
economic news raised concerns among some fixed-income investors that
inflationary pressures might re- The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
emerge. In fact, the Federal Reserve Board increased short-term interest rates
twice during the summer of 1999 in an attempt to forestall a reacceleration of
inflation. Because the market anticipated these changes in monetary policy
before they were announced, longer term tax-exempt yields had already risen by
the time the interest-rate hikes were actually implemented.
In addition, the fund was affected by supply-and-demand factors in the municipal
bond marketplace. Because strong economic conditions have reduced the need for
Massachusetts municipalities to borrow in the tax-exempt markets, there was
substantially less issuance of new municipal bonds during the first nine months
of 1999 compared to the same period one year ago. While demand has remained
strong from individual investors seeking to reduce their income tax liabilities,
demand from institutional investors such as insurance companies has fallen. This
imbalance between supply and demand has recently boosted the rise of tax-exempt
bond yields relative to taxable U.S. Treasury securities. As a result, municipal
bonds -- including those from Massachusetts issuers -- are currently offering
tax-exempt yields that compare very favorably with taxable yields after
adjusting for taxes.
What is the fund's current strategy?
We continue to search for the most attractive values in the Massachusetts
municipal bond market. We have found such values, in our opinion, primarily in
higher quality insured, intermediate-term bonds.(3) As bonds within the
portfolio have been pre-refunded or called by their issuers, we have generally
reinvested those proceeds in several ways: full coupon paper that supports the
income stream, and issues selling at a discount to their face values. We have
found values in such bonds in the 5- to 7-year and 10- to 14-year maturity
ranges. These bonds' prices may be temporarily depressed because their issuers
- -- such as utilities and hospitals -- have lagged the market.
After maintaining the fund's average duration toward the short end of its range
as interest rates rose through the first half of 1999, we have since increased
the average duration to a more neutral position. This shift was primarily a
response to our belief that most of the effects of higher interest rates have
already been incorporated into bond prices. It also allows us to lock in
prevailing yields for longer periods and take advantage of the potential for
capital appreciation if interest rates begin to fall from current levels.
However, we have kept some cash on hand to give us the flexibility we need to
capture any Y2K-related opportunities as the new year approaches.
October 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES FOR NON-MASSACHUSETTS RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE
FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF
ANY, ARE FULLY TAXABLE.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
(3) NEITHER THE MARKET VALUE OF THE BONDS COVERED BY SUCH INSURANCE, NOR FUND
SHARES, ARE INSURED. INSURANCE EXTENDS ONLY TO THE REPAYMENT OF PRINCIPAL OR TO
PORTFOLIO BONDS THAT DEFAULT.
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The Fund
STATEMENT OF INVESTMENTS
September 30, 1999 (Unaudited)
Principal
LONG-TERM MUNICIPAL INVESTMENTS--96.2% Amount ($) Value ($)
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MASSACHUSETTS--80.7%
Barnstable 4.50%, 3/15/2015 1,000,000 878,220
Boston 6.20%, 7/1/2002 865,000 907,792
Fall River 5.25%, 6/1/2010 (Insured; MBIA) 1,000,000 1,005,570
Haverhill 5%, 8/15/2011 (Insured; FSA) 1,620,000 1,576,778
Lawrence 5%, 9/15/2002 1,030,000 1,045,666
Lowell:
5.60%, 4/1/2005 (Insured; FSA) 1,530,000 1,597,213
5.30%, 12/15/2010 (Insured; AMBAC) 1,000,000 1,011,170
Lynn 5%, 1/15/2006 1,185,000 1,198,616
Massachusetts Bay Transportation Authority
(General Transportation System):
6%, 3/1/2005 970,000 1,029,393
6%, 3/1/2005 (Prerefunded 3/1/2003) 30,000 (a) 32,009
6%, 3/1/2006 1,230,000 1,305,313
6%, 3/1/2006 (Prerefunded 3/1/2003) 20,000 (a) 21,340
5.50%, 3/1/2012 (Insured; MBIA) 1,000,000 1,023,930
Massachusetts Commonwealth:
5.40%, 11/1/2006 2,000,000 2,077,960
6%, 8/1/2010 (Insured; AMBAC) 1,500,000 1,619,640
Consolidated Loan:
5.75%, 5/1/2003 500,000 522,230
5.30%, 7/1/2006 1,750,000 1,805,423
Massachusetts Educational Financing Authority,
Education Loan Revenue
5.70%, 7/1/2011 (Insured; AMBAC) 1,880,000 1,905,004
Massachusetts Health and Educational Facilities Authority, Revenue:
(Baystate Medical Center) 4.90%, 7/1/2005 (Insured; FGIC) 1,000,000 1,010,660
(Bentley College) 5.50%, 7/1/2003 (Insured; MBIA) 500,000 518,185
(Cape Cod Health System)
5%, 11/15/2002 (Insured; College Construction
Loan Insurance Association) 1,000,000 1,019,480
(Caritas Christi Obligation Group) 5.25%, 7/1/2005 1,000,000 989,760
(Central New England Health System) 5.75%, 8/1/2003 725,000 715,155
(Faulkner Hospital) 5.75%, 7/1/2003 1,850,000 1,909,996
(Hallmark Health System) 5.25%, 7/1/2010 (Insured; FSA) 2,055,000 2,067,412
(Massachusetts General Hospital):
4.85%, 7/1/2004 (Insured; AMBAC) 1,000,000 1,009,430
6%, 7/1/2004 (Insured; AMBAC) 1,875,000 1,987,819
(New England Medical Center Hospitals)
4.90%, 7/1/2006 (Insured; MBIA) 1,365,000 1,373,872
(Partners Healthcare System)
5.125%, 7/1/2011 (Insured; MBIA) 1,000,000 985,180
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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MASSACHUSETTS (CONTINUED)
Massachusetts Housing Finance Agency, Housing Projects
6.30%, 10/1/2013 2,000,000 2,078,920
Massachusetts Industrial Finance Agency, Revenue:
(Combined Jewish Philanthropies)
5.65%, 2/1/2003 (Insured; AMBAC) 795,000 825,345
(Ogden Haverhill Project) 5.45%, 12/1/2012 1,000,000 956,020
(Refusetech, Inc. Project) 6.15%, 7/1/2002 1,800,000 1,850,400
Massachusetts Municipal Wholesale Electric Co.,
Power Supply Systems Revenue:
5.875%, 7/1/2003 500,000 518,305
6.75%, 7/1/2008 1,000,000 1,065,310
Massachusetts Port Authority, Revenue 5.10%, 7/1/2010 1,175,000 1,157,058
Massachusetts Water Pollution Abatement Trust,
Water Pollution Abatement Revenue
(Pool Loan Program):
5.25%, 2/1/2008 1,000,000 1,025,370
5.70%, 2/1/2012 2,260,000 2,325,924
Milford 5.10%, 12/15/2010 1,300,000 1,300,325
New Bedford 5.60%, 3/1/2003 600,000 615,990
New England Education Loan Marketing Corp.,
Student Loan Revenue:
6%, 3/1/2002 500,000 513,875
6.90%, 11/1/2009 1,000,000 1,084,160
Pioneer Valley Transit Authority, COP
5.70%, 2/1/2003 (Insured; CGIC) 1,240,000 1,288,062
Plymouth County, COP (Correctional Facility Project)
5%, 4/1/2015 (Insured; AMBAC) 1,500,000 1,400,910
Worcester 6%, 8/1/2003 545,000 569,465
U. S. RELATED--15.5%
Guam Airport Authority, Revenue 6%, 10/1/2000 1,100,000 1,119,085
Guam Government, LOR, (Infrastructure Improvement)
5%, 11/1/2012 (Insured; AMBAC) 1,000,000 979,750
Puerto Rico Commonwealth:
5.375%, 7/1/2005 1,000,000 1,035,390
5.50%, 7/1/2011 1,000,000 1,025,600
5.25%, 7/1/2014 1,000,000 981,300
Puerto Rico Electric Power Authority, Power Revenue
5.50%, 7/1/2008 1,000,000 1,035,370
Puerto Rico Industrial Tourist Educational, Medical and
Environmental Control Facilities Financing Authority,
Industrial Revenue (Guaynabo Warehouse)
4.35%, 7/1/2006 1,000,000 941,280
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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U. S. RELATED (CONTINUED)
Virgin Islands Public Finance Authority, Revenue
6%, 10/1/2004 965,000 988,179
Virgin Islands Water and Power Authority, Electric Systems
5.125%, 7/1/2003 1,000,000 1,021,120
5.125%, 7/1/2011 1,000,000 980,040
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $62,185,699) 62,832,769
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SHORT-TERM MUNICIPAL INVESTMENTS--2.0%
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Massachusetts Health and Educational Facilities Authority,
Revenue, VRDN (Capital Asset Program) 3.90% (Insured; MBIA)
(cost $1,300,000) 1,300,000 (b) 1,300,000
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TOTAL INVESTMENTS (cost $63,485,699) 98.2% 64,132,769
CASH AND RECEIVABLES (NET) 1.8% 1,201,689
NET ASSETS 100.0% 65,334,458
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Summary of Abbreviations
AMBAC American Municipal Bond Assurance LOR Limited Obligation Revenue
Corporation MBIA Municipal Bond Investors
CGIC Capital Guaranty Insurance Company Assurance Insurance
COP Certificate of Participation Corporation
FGIC Financial Guaranty Insurance Company VRDN Variable Rate Demand Notes
FSA Financial Security Assurance
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Summary of Combined Ratings (unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 46.9
AA Aa AA 18.3
A A A 12.1
BBB Baa BBB 19.2
F-1+/F-1 MIG1, VMIG1 & P1 SP1 & A1 2.0
Not Rated c Not Rated c Not Rated c 1.5
100.0
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A BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT SECURITIES
WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST ON THE
MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING DATE.
B SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
C SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S HAVE
BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1999 (Unaudited)
Cost Value
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ASSETS ($):
Investments in securities--See Statement of Investments 63,485,699 64,132,769
Cash 333,418
Interest receivable 906,073
Prepaid expenses 5,739
65,377,999
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 26,754
Payable for shares of Beneficial Interest redeemed 224
Accrued expenses 16,563
43,541
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NET ASSETS ($) 65,334,458
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 67,221,801
Accumulated net realized gain (loss) on investments (2,534,413)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 647,070
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NET ASSETS ($) 65,334,458
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
4,943,732
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
13.22
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1999 (Unaudited)
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INVESTMENT INCOME ($):
INTEREST INCOME 1,722,098
EXPENSES:
Management fee--Note 3(a) 201,056
Shareholder servicing costs--Note 3(b) 54,667
Professional fees 17,884
Trustees' fees and expenses--Note 3(c) 10,951
Prospectus and shareholders' reports 3,770
Custodian fees 3,362
Registration fees 3,338
Loan commitment fees--Note 2 147
Miscellaneous 6,041
TOTAL EXPENSES 301,216
Less--reduction in management fee due to undertaking--Note 3(a) (32,994)
NET EXPENSES 268,222
INVESTMENT INCOME--NET 1,453,876
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 37,547
Net unrealized appreciation (depreciation) on investments (2,505,013)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (2,467,466)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (1,013,590)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1999 Year Ended
(Unaudited) March 31, 1999
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OPERATIONS ($):
Investment income--net 1,453,876 2,865,319
Net realized gain (loss) on investments 37,547 258,705
Net unrealized appreciation (depreciation)
on investments (2,505,013) 308,345
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (1,013,590) 3,432,369
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DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (1,453,876) (2,865,319)
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BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 9,530,692 14,119,601
Dividends reinvested 1,056,998 2,146,529
Cost of shares redeemed (13,742,864) (11,561,676)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS (3,155,174) 4,704,454
TOTAL INCREASE (DECREASE) IN NET ASSETS (5,622,640) 5,271,504
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NET ASSETS ($):
Beginning of Period 70,957,098 65,685,594
END OF PERIOD 65,334,458 70,957,098
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CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 712,107 1,026,555
Shares issued for dividends reinvested 78,880 156,366
Shares redeemed (1,021,393) (842,796)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (230,406) 340,125
SEE NOTES TO FINANCIAL STATEMENTS.
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FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Six Months Ended
September 30, 1999 Year Ended March 31,
--------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
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PER SHARE DATA ($):
Net asset value, beginning of period 13.71 13.59 13.07 13.15 12.81 12.91
Investment Operations:
Investment income--net .29 .58 .59 .58 .59 .61
Net realized and unrealized
gain (loss) on investments (.49) .12 .52 (.08) .34 (.08)
Total from Investment Operations (.20) .70 1.11 .50 .93 .53
Distributions:
Dividends from investment
income--net (.29) (.58) (.59) (.58) (.59) (.61)
Dividends from net realized
gain on investments -- -- -- -- -- (.02)
Total Distributions (.29) (.58) (.59) (.58) (.59) (.63)
Net asset value, end of period 13.22 13.71 13.59 13.07 13.15 12.81
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TOTAL RETURN (%) (2.91)(a) 5.25 8.63 3.98 7.22 4.23
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .80(a) .80 .80 .80 .75 .49
Ratio of net investment income
to average net assets 4.33(a) 4.25 4.39 4.42 4.45 4.82
Decrease reflected in above
expense ratios due to
undertakings by the Manager .10(a) .09 .06 .10 .14 .42
Portfolio Turnover Rate 3.09(b) 13.04 29.22 23.45 31.81 9.41
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Net Assets, end of period
($ x 1,000) 65,334 70,957 65,686 61,931 68,129 68,503
(A) ANNUALIZED.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Massachusetts Intermediate Municipal Bond Fund (the "fund" ) is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
a non-diversified open-end management investment company. The fund's investment
objective is to provide investors with as high a level of current income exempt
from Federal and Massachusetts state income taxes as is consistent with the
preservation of capital. The Dreyfus Corporation (the "Manager") serves as the
fund' s investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. Premier Mutual Fund Services, Inc. is the distributor of the fund's shares,
which are sold to the public without a sales charge.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (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. Under the terms of the custody
agreement, the fund receives net earnings credits based on available cash
balances left on deposit.
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 of 1986, as amended (the
" 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 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 $2,571,000
available for Federal income tax purposes to be applied The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
against future net securities profits, if any, realized subsequent to March 31,
1999. If not applied, $2,265,000 of the carryover expires in fiscal 2004 and
$306,000 expires in fiscal 2005.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
September 30, 1999, the fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management 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 Manager had undertaken from April
1, 1999 through September 30, 1999 to reduce the management fee paid by the
fund, to the extent that the fund's aggregate annual expenses, exclusive of
taxes, brokerage, interest on borrowings, commitment fees and extraordinary
expenses, exceeded 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
undertaking, amounted to $32,994 during the period ended September 30, 1999.
(B) Under the 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 period ended
September 30, 1999, the fund was charged $33,136 pursuant to the Shareholder
Services Plan.
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. During the period
ended September 30, 1999, the fund was charged $14,763 pursuant to the transfer
agency agreement.
(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.
(D) A 1% redemption fee is charged and retained by the fund on shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund' s Exchange privilege. During the period ended
September 30, 1999, redemption fees retained by the fund amounted to $29.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 1999, amounted to
$2,012,290 and $7,188,753, respectively.
At September 30, 1999, accumulated net unrealized appreciation on investments
was $647,070, consisting of $1,262,295 gross unrealized appreciation and
$615,225 gross unrealized depreciation.
At September 30, 1999, 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).
The Fund
For More Information
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
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 268SA999
