DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS CONNECTICUT
INTERMEDIATE MUNICIPAL BOND FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL
BOND INDEX
(EXHIBIT A)
Past performance is not predictive of future performance.
The above illustration compares a $10,000 investment made in the
Dreyfus Connecticut 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 Connecticut municipal securities and has a
portfolio with a weighted-average maturity of between 3 and 10 years.
The Fund's performance takes into account fees and expenses. Unlike the
Fund, the Lehman Brothers 10-Year Municipal Bond Index is an unmanaged
total return performance benchmark for the investment-grade 10-year tax
exempt bond market, consisting of municipal bonds with maturities of
more than 8 years and less than 12 years. The Index does not take into
account charges, fees and other expenses. Further information relating to
Fund performance, including expense reimbursements, if applicable, is
contained in the Condensed Financial Information section of the
Prospectus and elsewhere in this report.
* Source: Lehman Brothers
PRESIDENT'S LETTER
Dear Shareholder:
For the fiscal year ended March 31, 1994, the net asset value of your
Fund was $12.98 per share. This was approximately $.19 a share lower
than the closing price at our fiscal year-end close on March 31, 1993,
adjusted for capital gain distributions.* Income dividends of
approximately $.69 per share were paid during the period, which translate
into a distribution rate per share of 5.28%, based on the March 31 closing
net asset value per share, adjusted for capital gain distributions. We are
pleased to report that all dividends paid from net investment income
during the period were exempt from Federal and Connecticut State income
taxes, although certain shareholders may be subject to the Federal
Alternative Minimum Tax on some portfolio income.
The sustained market correction substantially increased volatility in
both U.S. and international financial markets. In early February and again
in late March, the Federal Reserve Board tightened short-term rates in
advance of possible higher levels of inflation. As a result, short-term
interest rates rose approximately 75 basis points and long-term yields
increased approximately 115 basis points, overall. These events
contributed to the net decline in your Fund's share price over the period.
Additionally, it is anticipated that further rate hikes will be forthcoming,
should the economy continue to signal an unacceptable rate of growth.
This factor, coupled with political uncertainty, will influence both the
bond and equity markets and may leave these markets in a volatile
position.
The rise in bond yields has dramatically curtailed the supply of new
issues in the municipal market and precluded any near-term prospect of
refunding the last marginal candidates. As for demand, with top marginal
Federal tax rates alone at nearly 40% and municipal bond yields
substantially higher than just a few months ago, investment opportunities
will once again be present when concerns over inflation subside and
interest rates stabilize.
Our current investment strategy is to maintain a defensive posture in
an effort to offset near-term volatility in the market. To this end, we
seized the opportunity to sell lower coupon bonds and raise cash to
position the Fund to capitalize on higher yields once interest rates
stabilize. It is our hope at present to purchase higher-yielding securities
while maintaining a high level of credit quality. Some economists predict
that rates may turn lower again as we approach year-end; this remains to
be seen. We will attempt to capture higher yields through the second and
third quarters assuming the market scenario plays out as indicated. We
will, however, monitor market changes very closely and adjust our
strategy to accommodate your investment goals.
It is our intention to continue to focus our efforts on the potential for
additional market volatility and manage the portfolio with an eye toward
navigating it through these difficult times. We will attempt to identify
opportunities that will favorably enhance the portfolio and help to
appreciate your investment in the Fund. A current Statement of
Investments and recent financial statements are provided for your review.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
President
April 15, 1994
New York, N.Y.
* Capital gains, if any, are generally subject to Federal, state and local
taxes.
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS AMOUNT VALUE
------------ ------------
<S> <C> <C>
CONNECTICUT-78.1%
Brookfield:
5.75%, 9/15/2002........................................................... $ 265,000 $ 275,963
4.80%, 7/15/2003........................................................... 300,000 287,808
4.90%, 7/15/2004........................................................... 300,000 287,565
5%, 7/15/2005.............................................................. 275,000 265,543
5.10%, 7/15/2006........................................................... 275,000 265,004
Cheshire:
4.75%, 8/15/2003........................................................... 530,000 507,517
4.90%, 8/15/2004........................................................... 530,000 508,720
5%, 8/15/2005.............................................................. 530,000 511,688
5.10%, 8/15/2006........................................................... 530,000 511,116
Colchester 5.20%, 6/15/2004 (Insured; FGIC).................................... 490,000 489,574
Columbia:
5.20%, 6/15/2002........................................................... 265,000 267,443
5.30%, 6/15/2003........................................................... 265,000 267,669
5.40%, 6/15/2004........................................................... 265,000 267,878
State of Connecticut:
5.65%, 5/15/1998........................................................... 2,100,000 2,181,816
5.80%, 11/15/2001.......................................................... 1,000,000 1,046,890
5.80%, 11/15/2002.......................................................... 1,500,000 1,568,145
COP (Middletown Courthouse Facilities Project):
5.90%, 12/15/2001 (Insured; MBIA)...................................... 500,000 524,365
6%, 12/15/2002 (Insured; MBIA)......................................... 750,000 790,440
Clean Water Fund Revenue:
5.375%, 2/1/2000....................................................... 500,000 508,590
5.40%, 4/1/2003........................................................ 1,000,000 1,004,950
5.50%, 4/1/2004........................................................ 1,245,000 1,251,648
Refunding 5.10%, 11/15/2004................................................ 1,900,000 1,863,273
Special Tax Obligation Revenue (Transit Infrastructure):
6.10%, 10/1/2001....................................................... 2,000,000 2,110,600
5.60%, 9/1/2002........................................................ 3,000,000 3,062,340
7.60%, 9/1/2007........................................................ 1,000,000 1,114,280
Refunding:
5.70%, 2/15/2001................................................... 500,000 514,255
5.10%, 9/1/2004.................................................... 2,850,000 2,762,562
Connecticut Airport, Revenue Refunding (Bradley International Airport):
7.10%, 10/1/1995 (Insured; FGIC)........................................... 1,040,000 1,098,157
7.20%, 10/1/1997 (Insured; FGIC)........................................... 1,220,000 1,328,043
Connecticut Development Authority,
Economic Development Projects Revenue Refunding:
4.90%, 11/15/2004...................................................... 1,250,000 1,173,900
5.60%, 11/15/2004...................................................... 2,525,000 2,530,404
5%, 11/15/2005......................................................... 1,000,000 945,090
Connecticut Health & Educational Facilities Authority, Revenue:
(Fairfield University):
4.45%, 7/1/2004 (Insured; MBIA)........................................ 1,545,000 1,385,386
4.55%, 7/1/2005 (Insured; MBIA)........................................ 1,615,000 1,448,510
(The Griffin Hospital):
5.30%, 7/1/2000........................................................ 500,000 481,415
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
CONNECTICUT (CONTINUED)
Connecticut Health & Educational Facilities Authority, Revenue (continued):
(The Griffin Hospital) (continued):
5.50%, 7/1/2001........................................................ $ 500,000 $ 477,360
5.60%, 7/1/2002........................................................ 500,000 474,325
5.70%, 7/1/2003........................................................ 500,000 472,375
(Lawrence and Memorial Hospital) 6.25%, 7/1/2022 (Insured; MBIA)........... 2,750,000 2,954,380
(Manchester Memorial Hospital):
5.10%, 7/1/2003 (Insured; MBIA)........................................ 200,000 197,088
5.25%, 7/1/2004 (Insured; MBIA)........................................ 215,000 212,467
5.30%, 7/1/2005 (Insured; MBIA)........................................ 220,000 216,867
(New Britain Memorial Hospital) 7.50%, 7/1/2006............................ 1,000,000 1,023,530
(Quinnipiac College) 5.625%, 7/1/2003...................................... 2,300,000 2,248,986
(Sacred Heart University) 5.35%, 7/1/2004.................................. 1,000,000 934,740
(Saint Raphael Hospital) 4.80%, 7/1/2004 (Insured; AMBAC).................. 2,585,000 2,419,379
(University of Hartford):
6.20%, 7/1/2001........................................................ 750,000 764,895
6.25%, 7/1/2002........................................................ 700,000 712,915
(William W. Backus Hospital):
5.40%, 7/1/2000........................................................ 285,000 282,572
5.80%, 7/1/2004........................................................ 250,000 242,660
(Yale-New Haven Hospital):
5.40%, 7/1/1997 (Insured; MBIA)........................................ 1,000,000 1,026,550
5.60%, 7/1/1998 (Insured; MBIA)........................................ 1,000,000 1,032,280
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
6.90%, 11/15/1998.......................................................... 2,500,000 2,641,975
5.95%, 11/15/2002.......................................................... 2,000,000 2,055,460
6.05%, 11/15/2002.......................................................... 350,000 360,868
5.40%, 5/15/2003........................................................... 1,000,000 1,007,090
5.55%, 5/15/2005........................................................... 1,280,000 1,262,170
5.60%, 11/15/2006.......................................................... 1,100,000 1,076,570
Connecticut Resources Recovery Authority,
Mid-Connecticut Systems Refunding:
5.60%, 11/15/1999...................................................... 2,500,000 2,566,475
5.75%, 11/15/2000...................................................... 2,000,000 2,060,420
Danbury:
5.10%, 8/15/2003........................................................... 815,000 811,349
5.25%, 8/15/2004........................................................... 815,000 814,299
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project):
5%, 1/1/2004........................................................... 1,900,000 1,749,425
5.15%, 1/1/2005........................................................ 1,990,000 1,832,034
5.25%, 1/1/2006........................................................ 2,145,000 1,964,648
East Lyme:
5.20%, 8/1/2003............................................................ 425,000 423,725
5.60%, 8/1/2009............................................................ 415,000 407,845
Groton Town:
4.70%, 8/15/2003........................................................... 490,000 465,000
4.80%, 8/15/2004........................................................... 490,000 463,868
5%, 8/15/2005.............................................................. 490,000 473,070
5%, 8/15/2006.............................................................. 490,000 467,338
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
CONNECTICUT (CONTINUED)
Guilford, Refunding:
5.40%, 10/15/2001.......................................................... $ 1,215,000 $ 1,230,722
5.50%, 10/15/2002.......................................................... 1,000,000 1,014,250
Hamden:
5.25%, 10/1/2001........................................................... 445,000 448,289
5.30%, 10/1/2002........................................................... 440,000 442,090
5.40%, 10/1/2003........................................................... 425,000 427,193
Meriden 5.50%, 11/15/2001 (Insured; MBIA)...................................... 1,550,000 1,620,494
Montville 6%, 6/15/2000........................................................ 575,000 601,870
New Britain:
5.375%, 3/1/2003 (Insured; MBIA)........................................... 1,000,000 1,009,470
5.50%, 3/1/2004 (Insured; MBIA)............................................ 1,000,000 1,012,140
New Fairfield 4.80%, 3/15/2003 (Insured; MBIA)................................. 800,000 773,960
New Haven:
6.50%, 12/1/2002........................................................... 1,410,000 1,446,138
6.75%, 12/1/2005........................................................... 845,000 882,214
New London:
5.10%, 10/1/2002 (Insured; MBIA)........................................... 575,000 578,939
5.20%, 10/1/2003 (Insured; MBIA)........................................... 575,000 579,284
New Milford:
5.20%, 8/1/2003............................................................ 550,000 545,947
5.40%, 8/1/2006............................................................ 380,000 369,637
5.50%, 8/1/2007............................................................ 425,000 412,849
Norwalk Maritime Center Authority,
Martime Center Project Revenue Refunding:
5.40%, 2/1/2002........................................................ 635,000 645,484
5.50%, 2/1/2003........................................................ 670,000 682,134
Plainfield 5.80%, 8/1/2001 (Insured; MBIA)..................................... 250,000 265,440
South Central Connectiut Regional Water Authority, Water Systems Revenue:
5.10%, 8/1/2000 (Insured; FGIC)............................................ 3,000,000 3,001,380
7%, 8/1/2001............................................................... 1,500,000 1,617,090
5.50%, 8/1/2003 (Insured; FGIC)............................................ 2,000,000 2,015,800
5.50%, 8/1/2004 (Insured; FGIC)............................................ 540,000 540,373
Stratford:
4.60%, 11/1/2004 (Insured; FGIC)........................................... 3,775,000 3,439,780
5.625%, 11/1/2007 (Insured; FGIC).......................................... 4,365,000 4,350,377
Wallingford:
5.20%, 6/15/2001........................................................... 400,000 405,724
5.30%, 6/15/2002........................................................... 400,000 406,348
5.40%, 6/15/2003........................................................... 400,000 406,928
Refunding:
5.15%, 6/1/2003........................................................ 250,000 249,800
5.30%, 6/1/2004........................................................ 500,000 501,520
Waterbury, Tax Revenue Intercept Refunding:
4.90%, 4/15/2002 (Insured; FGIC)........................................... 1,930,000 1,883,641
5%, 4/15/2003 (Insured; FGIC).............................................. 2,060,000 2,013,114
West Haven 6%, 8/15/2000....................................................... 350,000 351,578
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
U.S. RELATED-21.9%
Commonwealth of Puerto Rico:
5.25%, 7/1/2001............................................................ $ 1,000,000 $ 990,540
5.30%, 7/1/2004............................................................ 5,000,000 4,839,550
Commonwealth of Puerto Rico Highway and Transportation Authority,
Highway Revenue Refunding 5.875%, 7/1/1999................................. 1,500,000 1,543,365
Guam Government 4.70%, 11/15/2002.............................................. 2,365,000 2,187,767
Guam Power Authority, Revenue 4.875%, 10/1/2001................................ 1,685,000 1,597,734
Puerto Rico Electric Power Authority,
Power Revenue 6.30%, 7/1/1997 (Insured; MBIA).............................. 1,000,000 1,053,150
Puerto Rico Highway and Transportation Authority,
Highway Revenue Refunding 6.93%, 7/1/2004(a)............................... 5,100,000 4,857,750
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................... 1,800,000 1,806,678
Puerto Rico Public Buildings Authority, Public Education and
Health Facilities Refunding 5.40%, 7/1/2004................................ 5,000,000 4,866,600
Virgin Islands, Subordinate Tax (Insurance Claims Fund Program-
General Obligation Matching Fund) 5.65%, 10/1/2003......................... 4,000,000 3,916,960
Virgin Islands Public Finance Authority,
Revenue Refunding Matching Fund Loan Notes:
6.90%, 10/1/2001....................................................... 2,000,000 2,014,560
7%, 10/1/2002.......................................................... 750,000 760,200
Virgin Islands Water and Power Authority, Water Systems Revenue
7.20%, 1/1/2002............................................................ 400,000 415,896
TOTAL INVESTMENTS-100.0%
(cost $143,697,043)........................................................ $141,028,292
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation FGIC Financial Guaranty Insurance Corporation
COP Certificate of Participation MBIA Municipal Bond Insurance Association
</TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (B) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- - --------- ------- ----------------- -------------------
AAA Aaa AAA 29.6%
AA Aa AA 34.1
A A A 21.3
BBB Baa BBB 10.0
Not Rated Not Rated Not Rated 5.0
------
100.0%
======
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security - the interest rate is subject to change
periodically.
(b) Fitch currently provides creditworthiness information for a limited amount
of investments.
(c) At March 31, 1994, the Fund had $38,037,337 (27.0%) of net assets invested
in securities whose payment of principal and interest is dependent upon
revenues generated from city municipal projects.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1994
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $143,697,043)-see statement...................................... $141,028,292
Interest receivable........................................................ 2,521,543
Receivable for shares of Beneficial Interest subscribed.................... 48,309
Prepaid expenses........................................................... 20,798
Due from The Dreyfus Corporation........................................... 279,862
------------
143,898,804
LIABILITIES:
Due to Custodian........................................................... $2,829,514
Payable for shares of Beneficial Interest redeemed......................... 203,591
Accrued expenses........................................................... 61,253 3,094,358
------------ ------------
NET ASSETS..................................................................... $140,804,446
============
REPRESENTED BY:
Paid-in capital............................................................ $143,567,634
Accumulated distributions in excess of net realized gain
on investments- Note 1(c).............................................. (94,437)
Accumulated net unrealized (depreciation) on investments-Note 3............ (2,668,751)
------------
NET ASSETS at value applicable to 10,851,479 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized)....................................................... $140,804,446
============
NET ASSET VALUE, offering and redemption price per share
($140,804,446 / 10,851,479 shares)......................................... $12.98
======
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1994
INVESTMENT INCOME:
INTEREST INCOME............................................................ $ 6,020,708
EXPENSES:
Management fee-Note 2(a)............................................... $ 710,647
Shareholder servicing costs-Note 2(b).................................. 163,539
Custodian fees......................................................... 46,492
Registration fees...................................................... 23,541
Prospectus and shareholders' reports................................... 16,818
Trustees' fees and expenses-Note 2(c).................................. 11,245
Professional fees...................................................... 7,102
Organization expenses.................................................. 5,976
Miscellaneous.......................................................... 20,581
------------
1,005,941
Less-expense reimbursement from Manager due to
undertakings-Note 2(a)............................................. 990,509
------------
TOTAL EXPENSES................................................. 15,432
------------
INVESTMENT INCOME-NET.......................................... 6,005,276
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments........................................... $ 40,949
Net unrealized (depreciation) on investments............................... (4,214,020)
------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS.............. (4,173,071)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 1,832,205
============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
---------------------------
1993* 1994
------------ ------------
<S> <C> <C>
OPERATIONS:
Investment income-net...................................................... $ 1,568,717 $ 6,005,276
Net realized gain (loss) on investments.................................... (78,832) 40,949
Net unrealized appreciation (depreciation) on investments for the year..... 1,545,269 (4,214,020)
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... 3,035,154 1,832,205
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net...................................................... (1,568,717) (6,005,276)
Excess net realized gain on investments.................................... (41) (56,513)
------------ ------------
TOTAL DIVIDENDS........................................................ (1,568,758) (6,061,789)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.............................................. 94,163,713 122,670,991
Dividends reinvested....................................................... 1,345,872 6,048,338
Cost of shares redeemed.................................................... (21,478,835) (59,282,445)
------------ ------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........... 74,030,750 69,436,884
------------ ------------
TOTAL INCREASE IN NET ASSETS....................................... 75,497,146 65,207,300
NET ASSETS:
Beginning of year.......................................................... 100,000 75,597,146
------------ ------------
End of year................................................................ $ 75,597,146 $140,804,446
============ ============
SHARES SHARES
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold................................................................ 7,289,554 9,054,074
Shares issued for dividends reinvested..................................... 103,545 448,656
Shares redeemed............................................................ (1,664,538) (4,387,812)
------------ ------------
NET INCREASE IN SHARES OUTSTANDING..................................... 5,728,561 5,114,918
============ ============
- - -------------------
* From May 27, 1992 (commencement of operations) to March 31, 1993.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of Beneficial Interest outstanding,
total investment return, ratios to average net assets and other supplemental data for each year indicated.
This information has been derived from information provided in the Fund's financial statements.
YEAR ENDED MARCH 31,
---------------------------
PER SHARE DATA: 1993(1) 1994
------------ ------------
<S> <C> <C>
Net asset value, beginning of year......................................... $12.50 $13.18
------ ------
INVESTMENT OPERATIONS:
Investment income-net...................................................... .58 .69
Net realized and unrealized gain (loss) on investments..................... .68 (.19)
------ ------
TOTAL FROM INVESTMENT OPERATIONS....................................... 1.26 .50
------ ------
DISTRIBUTIONS:
Dividends from investment income-net....................................... (.58) (.69)
Dividends from excess net realized gain on investments..................... -- (.01)
------ ------
TOTAL DISTRIBUTIONS.................................................... (.58) (.70)
------ ------
Net asset value, end of year............................................... $13.18 $12.98
====== ======
TOTAL INVESTMENT RETURN 12.33%(2) 3.64%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................................... -- .01%
Ratio of net investment income to average net assets....................... 5.21%(2) 5.07%
Decrease reflected in above expense ratios due to
undertakings by the Manager............................................ 1.18%(2) .84%
Portfolio Turnover Rate.................................................... 37.94%(3) 11.47%
Net Assets, end of year (000's Omitted).................................... $75,597 $140,804
- - ---------------------
(1) From May 27, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
See notes to financial statements.
</TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a non-diversified open-end management investment company.
Dreyfus Service Corporation ("Distributor") acts as the exclusive
distributor of the Fund's shares, which are sold to the public without a
sales charge. The Distributor is a wholly-owned subsidiary of The Dreyfus
Corporation ("Manager").
(A) PORTFOLIO VALUATION: The Fund's investments are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices in the
judgment of the Service are readily available and are representative of
the bid side of the market are valued at the mean between the quoted bid
prices (as obtained by the Service from dealers in such securities) and
asked prices (as calculated by the Service based upon its evaluation of the
market for such securities). Other investments (which constitute a
majority of the portfolio securities) are carried at fair value as
determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general
market conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss
from securities transactions are recorded on the identified cost basis.
Interest income, adjusted for amortization of premiums and, when
appropriate, discounts on investments, is earned from settlement date and
recognized on the accrual basis. Securities purchased or sold on a when-
issued or delayed-delivery basis may be settled a month or more after the
trade date.
The Fund follows an investment policy of investing primarily in
municipal obligations of one state. Economic changes affecting the state
and certain of its public bodies and municipalities may affect the ability
of issuers within the state to pay interest on, or repay principal of,
municipal obligations held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid
monthly. Dividends from net realized capital gain are normally declared
and paid annually, but the Fund may make distributions on a more frequent
basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
Dividends in excess of net realized gains on investment for financial
statement purposes result primarily from wash sale losses in certain
security transactions during the year ended March 31, 1994 which have
been currently deferred for Federal income tax purposes.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax
exempt dividends, by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from all, or substantially all, Federal income
taxes.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the
Manager, the management fee is computed at the annual rate of .60 of 1%
of the average daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund for any full
fiscal year. However, the Manager had undertaken from April 1, 1993
through June 30, 1993, to reimburse all fees and expenses of the Fund. The
Manager has currently undertaken from July 1, 1993 through June 30, 1994
or until such time as the net assets of the Fund exceed $175 million,
regardless of whether they remain at that level, to waive receipt of the
management fee payable to it by the Fund. In addition, the Manager may
voluntarily assume all or part of the other expenses of the Fund, provided
that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement. The expense reimbursement,
pursuant to the undertakings, amounted to $990,509 for the year ended
March 31, 1994.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses the Distributor an amount not to exceed an annual rate of .25
of 1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. During the
year ended March 31, 1994, the Fund was charged an aggregate of $62,970
pursuant to the Shareholder Services Plan.
(C) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each trustee
who is not an "affiliated person" receives an annual fee of $1,000 and an
attendance fee of $250 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory approvals
and approvals of the stockholders of the Manager and of Mellon. The merger
is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
NOTE 3-SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $100,216,431 and
$33,322,478, respectively, for the year ended March 31, 1994, and
consisted entirely of municipal bonds and short-term municipal
investments.
At March 31, 1994, accumulated net unrealized depreciation on
investments was $2,668,751, consisting of $931,302 gross unrealized
appreciation and $3,600,053 gross unrealized depreciation.
At March 31, 1994, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
We have audited the accompanying statement of assets and liabilities
of Dreyfus Connecticut Intermediate Municipal Bond Fund, including the
statement of investments, as of March 31, 1994, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended, and
financial highlights for each of the years indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of March 31, 1994 by correspondence
with the custodian. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our 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 Connecticut Intermediate Municipal Bond Fund at March
31, 1994, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the indicated years, in
conformity with generally accepted accounting principles.
(Ernst and Young Signature Logo)
New York, New York
May 2, 1994
May 3, 1994
May 4, 1994
May 5, 1994
May 6, 1994
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended
March 31, 1994 as "exempt-interest dividends" (not subject to regular
Federal and, for individuals who are Connecticut residents, Connecticut
personal income taxes).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1994 calendar year
on Form 1099-DIV which will be mailed by January 31, 1995.
(Dreyfus Logo)
Connecticut
Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1994
(Dreyfus Lion "D" Logo)
DREYFUS CONNECTICUT INTERMEDIATE
MUNICIPAL BOND FUND
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 914AR943
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
____________________________________________________
| | | |
| | LEHMAN BROTHERS | |
| PERIOD | 10-YEAR | DREYFUS CONNECTICUT |
| | MUNICIPAL | INTERMEDIATE |
| | BOND INDEX * | MUNICIPAL BOND FUND |
|-----------|-----------------|---------------------|
| 6/26/92 | 10,000 | 10,000 |
| 6/30/92 | 10,000 | 10,024 |
| 7/31/92 | 10,328 | 10,333 |
| 8/31/92 | 10,206 | 10,164 |
| 9/30/92 | 10,291 | 10,208 |
| 10/31/92 | 10,186 | 10,101 |
| 11/30/92 | 10,372 | 10,307 |
| 12/31/92 | 10,493 | 10,409 |
| 1/31/93 | 10,669 | 10,590 |
| 2/28/93 | 11,060 | 11,007 |
| 3/31/93 | 10,898 | 10,812 |
| 4/30/93 | 11,002 | 10,924 |
| 5/31/93 | 11,040 | 10,966 |
| 6/30/93 | 11,258 | 11,164 |
| 7/31/93 | 11,287 | 11,117 |
| 8/31/93 | 11,520 | 11,393 |
| 9/30/93 | 11,662 | 11,574 |
| 10/30/93 | 11,681 | 11,604 |
| 11/30/93 | 11,586 | 11,534 |
| 12/31/93 | 11,833 | 11,738 |
| 1/31/94 | 11,978 | 11,864 |
| 2/28/94 | 11,650 | 11,559 |
| 3/31/94 | 11,205 | 11,205 |
|---------------------------------------------------|
|---------------------------------------------------------|
| DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND |
|---------------------------------------------------------|
| AVERAGE ANNUAL TOTAL RETURNS ENDED ON 3/31/94 |
|---------------------------------------------------------|
| | SINCE INCEPTION |
| 1 YEAR | (6/26/92) |
|-----------------------------|---------------------------|
| 3.64% | 6.67% |
|---------------------------------------------------------|
