DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Connecticut
Intermediate Municipal Bond Fund. For its semi-annual reporting period ended
September 30, 1995, your Fund produced a total return of 10.09%, including
share price changes and dividends.* Income dividends exempt from Federal and
State of Connecticut personal income taxes of approximately $.303 per share
were paid.** This is equivalent to an annualized tax-free distribution rate
per share of 4.53%.***
The Federal Reserve Board relaxed its policy of monetary restraint when
it lowered the Fed Funds rate on July 6, 1995. This reduction ended the
upward pressure on short-term rates which had prevailed since the beginning
of the reporting period. (Despite the monetary restraint that existed,
long-term rates had begun to decline early in the year.) The Fed's policy of
restraint had been based on concern about inflation given the strong economic
news then prevailing. But in July these same reports indicated a significant
weakening trend in the economy. The July decline in the Fed Funds rate
signaled that economic growth issues outweighed, for a time, Fed fears of a
resurgence of inflation.
THE ECONOMY
Economic reports indicated lagging home and auto sales and a decline in
new home construction from earlier this year. Furthermore, rising business
inventories (a frequent harbinger of a business slowdown) and weakening
retail sales lent additional credibility to the case for easier credit
conditions. By midyear, jobless claims were also on the rise and corporate
cost reduction programs continued to increase layoffs. But after the Fed
Funds rate was lowered, economic signals became mixed, and inflationary
expectations, subdued. Accordingly, interest rates have stabilized.
More recently, however, economic strength has been reflected in some of
the indicators released. Inflation is moderate, but various sectors of the
economy such as consumer spending and housing appear to be picking up. While
it is expected that the stronger numbers will forestall any immediate easing
by the Federal Reserve Board, one should not rule out the possibility of
another Fed move before year-end.
A word about inflation: Despite strong economic growth at the beginning
of the reporting period, inflation remained in check. We believe a
continuation of this moderating trend for prices appears likely, particularly
if the economy remains sluggish. This could be good news for bond prices
since easing inflation can result in falling interest rates. Declining
interest rates, often a corollary to slow business conditions, cause bond
prices to rise. Of course, there is no guarantee how the bond market will
perform at any time. Although we strive to maintain a high level of current
tax exempt income for the Fund, we always are very concerned with credit
quality, so we are mindful of the potential erosion in bond quality if the
economy slips back into a recession. We follow a policy that stresses strong
credit quality in the portfolio, a policy which seeks to protect bond values
and income streams. As you know, we manage portfolios with a long-term
perspective, aware that market conditions can change rapidly.
MARKET ENVIRONMENT
The municipal bond market, buffeted by six interest rate hikes by the
Federal Reserve Board in 1994, recovered strongly in 1995. Weaker than
expected December sales figures caused rates to tumble and this decline
persisted throughout the remainder of the reporting period. This summer's
rate cut confirmed what declining long-term interest rates had indicated all
year: Business conditions were weaker than monetary
policymakers had thought. If economic conditions remain sluggish, and
Congress is able to arrive at an acceptable budget accord, we believe further
Fed easing is likely. We believe this indicates a rather favorable outlook
for bond markets in general. We are certainly pleased by the good performance
of late by the bond market and by the Fund; however, we are wary that this
bond market strength may be counting too much on continued low inflation.
Thus, while we remain fully invested in this improving market, we are alert
to the stimulatory effects of easing monetary policy and are watchful for any
signs of rekindling inflation.
The prospect of tax reform appears to be limiting the enthusiasm for tax
exempt securities. Since April, when serious flat
tax and consumption tax proposals began to surface, the municipal rally has
lagged, resulting in an increase in municipal yields as a percentage of
comparable taxable bond yields. Today, long-term municipal bonds are yielding
nearly 90% of U.S. Treasuries, which is a greater yield ratio than existed
before the onset of talk about tax reform. While it could be years before an
actual change in the tax code is adopted, the market's reaction so early in
the proposal cycle suggests that the ultimate legislation, if any, may have a
less radical effect on the market than feared.
THE PORTFOLIO
At the beginning of this year, the Fund had pursued a somewhat defensive
posture due to the lingering uncertainty wrought by 1994. It did so by
purchasing bonds with coupons some 50 to 75 basis points ahead of the market.
As the year progressed the market began to gradually show signs of
improvement, albeit with a tenuous overtone, and pushed discount holdings up
to profitable levels. Our strategy aided performance at a time when the
supply of both new issues and secondary offerings dried up and the market
continued to forge ahead. Through this period, cash flow remained meager and
did not exacerbate the lack of new bond issuance.
Our primary tasks -- to protect principal, maintain liquidity and
distribute a high level of current tax exempt income to you -- continue to
guide our portfolio management decisions. The high level of volatility
exhibited by the market in recent years underscores the need to maintain a
disciplined and long-term focus in 1995.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 16, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
** Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.
***Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the net asset
value per share at the end of the period.
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-99.6% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
CONNECTICUT-82.9%
Cheshire:
4.75%, 8/15/2003........................................................ $ 530,000 $ 530,662
4.90%, 8/15/2004........................................................ 530,000 533,381
5%, 8/15/2005........................................................... 530,000 534,494
5.10%, 8/15/2006........................................................ 530,000 533,047
Columbia:
5.20%, 6/15/2002........................................................ 265,000 275,934
5.30%, 6/15/2003........................................................ 265,000 277,434
5.40%, 6/15/2004........................................................ 265,000 278,695
State of Connecticut:
5.80%, 11/15/2001....................................................... 1,000,000 1,068,880
6.10%, 3/15/2002........................................................ 3,840,000 4,158,682
5.80%, 11/15/2002....................................................... 1,500,000 1,609,185
5.70%, 8/15/2007........................................................ 1,500,000 1,569,825
COP (Middletown Courthouse Facilities Project):
5.90%, 12/15/2001 (Insured; MBIA)..................................... 250,000 267,642
6%, 12/15/2002 (Insured; MBIA)........................................ 750,000 809,940
Clean Water Fund Revenue:
5.40%, 4/1/2003....................................................... 1,000,000 1,042,550
5.50%, 4/1/2004....................................................... 1,245,000 1,303,490
5.40%, 6/1/2007....................................................... 1,805,000 1,837,093
Special Tax Obligation Revenue (Transit Infrastructure):
6.10%, 10/1/2001...................................................... 2,000,000 2,156,940
5.60%, 9/1/2002....................................................... 3,000,000 3,163,260
7.60%, 9/1/2007 (Prerefunded 9/1/1997) (a)............................ 1,000,000 1,083,290
Refunding 5.70%, 2/15/2001............................................ 500,000 526,395
Connecticut Airport, Revenue Refunding (Bradley International Airport):
7.10%, 10/1/1995 (Insured; FGIC)........................................ 1,040,000 1,040,000
7.20%, 10/1/1997 (Insured; FGIC)........................................ 1,000,000 1,057,520
7.35%, 10/1/2001 (Insured; FGIC)........................................ 1,000,000 1,142,310
Connecticut Health & Educational Facilities Authority, Revenue:
(Kent School) 5.10%, 7/1/2007 (Insured; MBIA)........................... 500,000 496,035
(Quinnipiac College) 5.625%, 7/1/2003................................... 2,300,000 2,274,907
(The Griffin Hospital):
5.30%, 7/1/2000....................................................... 500,000 493,765
5.50%, 7/1/2001....................................................... 500,000 488,640
5.60%, 7/1/2002....................................................... 500,000 486,270
5.70%, 7/1/2003....................................................... 500,000 484,135
(University of Hartford):
6.20%, 7/1/2001....................................................... 750,000 763,320
6.25%, 7/1/2002....................................................... 700,000 712,236
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
CONNECTICUT (CONTINUED)
Connecticut Health & Educational Facilities Authority, Revenue (continued):
(William W. Backus Hospital):
5.40%, 7/1/2000....................................................... $ 285,000 $ 286,277
5.80%, 7/1/2004....................................................... 250,000 253,398
Connecticut Higher Education Supplemental Loan Authority, Revenue
(Family Education Loan Program):
5.70%, 11/15/2004..................................................... 1,485,000 1,523,120
5.80%, 11/15/2005..................................................... 2,045,000 2,114,469
5.90%, 11/15/2006..................................................... 2,145,000 2,226,381
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
6.90%, 11/15/1998....................................................... 2,500,000 2,635,025
5.95%, 11/15/2002....................................................... 2,000,000 2,104,040
6.05%, 11/15/2002....................................................... 350,000 367,290
5.90%, 5/15/2006........................................................ 1,000,000 1,046,540
5.60%, 11/15/2006....................................................... 1,100,000 1,115,609
Connecticut Regional School District Number 5:
5.25%, 1/15/2004 (Insured; MBIA)........................................ 400,000 412,996
5.40%, 1/15/2005 (Insured; MBIA)........................................ 400,000 415,512
5.50%, 1/15/2006 (Insured; MBIA)........................................ 400,000 414,988
Connecticut Resources Recovery Authority,
Mid-Connecticut Systems Refunding:
5.60%, 11/15/1999..................................................... 2,500,000 2,601,425
5.75%, 11/15/2000..................................................... 2,000,000 2,066,060
Danbury:
5.10%, 8/15/2003........................................................ 815,000 839,996
5.25%, 8/15/2004........................................................ 815,000 845,383
Derby:
5.40%, 5/15/2004 (Insured; AMBAC)....................................... 420,000 438,509
5.50%, 5/15/2005 (Insured; AMBAC)....................................... 620,000 649,450
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project):
5.15%, 1/1/2005....................................................... 1,500,000 1,393,170
5.25%, 1/1/2006....................................................... 820,000 787,872
East Hampton:
5.25%, 7/15/2004 (Insured; FGIC)........................................ 300,000 310,221
5.40%, 7/15/2005 (Insured; FGIC)........................................ 305,000 317,328
5.50%, 7/15/2006 (Insured; FGIC)........................................ 305,000 317,834
East Lyme:
5.20%, 8/1/2003......................................................... 425,000 439,896
5.60%, 8/1/2009......................................................... 415,000 422,391
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
CONNECTICUT (CONTINUED)
Easton:
5.05%, 6/1/2007......................................................... $ 270,000 $ 265,310
5.15%, 6/1/2008......................................................... 270,000 264,082
5.25%, 6/1/2009......................................................... 245,000 238,686
Glastonbury 6%, 10/15/2006.................................................. 220,000 240,937
Guilford:
5.25%, 1/15/2004........................................................ 300,000 308,091
5.40%, 1/15/2005........................................................ 325,000 335,764
5.50%, 1/15/2006........................................................ 325,000 334,740
Refunding:
5.40%, 10/15/2001..................................................... 1,215,000 1,267,051
5.50%, 10/15/2002..................................................... 1,000,000 1,049,310
Hamden:
5.25%, 10/1/2001........................................................ 445,000 461,443
5.30%, 10/1/2002........................................................ 440,000 457,464
5.40%, 10/1/2003........................................................ 425,000 444,078
Hartford 5.30%, 10/1/2008 (Insured; FGIC)................................... 1,000,000 1,002,640
Manchester 7%, 10/1/2002.................................................... 355,000 405,531
Meriden 5.50%, 11/15/2001 (Insured; MBIA)................................... 1,300,000 1,388,946
Montville 6%, 6/15/2000..................................................... 575,000 611,202
New Britain:
5.375%, 3/1/2003 (Insured; MBIA)........................................ 750,000 783,292
5.50%, 3/1/2004 (Insured; MBIA)......................................... 1,000,000 1,050,810
New Fairfield 4.80%, 3/15/2003 (Insured; MBIA).............................. 550,000 556,869
New Haven:
5.25%, 8/1/2006 (Insured; FGIC)......................................... 1,500,000 1,493,760
6.50%, 12/1/2002........................................................ 1,410,000 1,473,817
6.75%, 12/1/2005........................................................ 845,000 933,649
New London:
5.10%, 10/1/2002 (Insured; MBIA)........................................ 300,000 309,075
5.20%, 10/1/2003 (Insured; MBIA)........................................ 575,000 594,769
New Milford:
5.20%, 8/1/2003......................................................... 550,000 567,820
5.40%, 8/1/2006......................................................... 380,000 396,450
5.50%, 8/1/2007......................................................... 425,000 443,007
Norwalk Maritime Center Authority, Revenue Refunding (Maritime Center
Project):
5.40%, 2/1/2002......................................................... 635,000 663,677
5.50%, 2/1/2003......................................................... 670,000 704,170
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
CONNECTICUT (CONTINUED)
Norwich 5.75%, 9/15/2005.................................................... $ 875,000 $ 935,891
Redding:
6.50%, 4/15/2007........................................................ 200,000 225,128
6.55%, 4/15/2008........................................................ 200,000 225,434
6.60%, 4/15/2009........................................................ 200,000 225,308
South Central Connecticut Regional Water Authority, Water Systems Revenue:
5.10%, 8/1/2000 (Insured; FGIC)......................................... 3,000,000 3,091,770
5.50%, 8/1/2003 (Insured; FGIC)......................................... 2,000,000 2,107,780
5.50%, 8/1/2004 (Insured; FGIC)......................................... 540,000 564,554
Southington:
5.40%, 9/15/2005 (Insured; MBIA)........................................ 455,000 474,574
5.50%, 9/15/2006 (Insured; MBIA)........................................ 455,000 474,397
5.60%, 9/15/2007 (Insured; MBIA)........................................ 455,000 472,941
Stamford:
6.625%, 3/15/2004....................................................... 2,750,000 3,131,425
7.75%, 1/15/2005. ...................................................... 1,650,000 2,023,874
Stratford:
4.60%, 11/1/2004 (Insured; FGIC)........................................ 2,500,000 2,458,000
7%, 6/15/2005 (Insured; FGIC)........................................... 500,000 581,370
5.625%, 11/1/2007 (Insured; FGIC)....................................... 4,365,000 4,526,549
Vernon:
5.30%, 9/15/2004 (Insured; MBIA)........................................ 360,000 376,445
5.40%, 9/15/2005 (Insured; MBIA)........................................ 360,000 377,806
5.50%, 9/15/2006 (Insured; MBIA)........................................ 360,000 377,143
Wallingford:
5.20%, 6/15/2001........................................................ 400,000 416,388
5.30%, 6/15/2002........................................................ 400,000 418,800
5.40%, 6/15/2003........................................................ 400,000 421,340
Refunding 5.30%, 6/1/2004............................................... 500,000 522,215
Waterbury:
4.90%, 4/15/2002 (Insured; FGIC)........................................ 1,650,000 1,660,973
5%, 4/15/2003 (Insured; FGIC)........................................... 2,060,000 2,076,027
West Haven:
6%, 8/15/2000........................................................... 350,000 357,070
6%, 9/1/2009............................................................ 480,000 500,376
Westport:
5.10%, 6/15/2003........................................................ 500,000 517,020
5.20%, 6/15/2004........................................................ 500,000 518,750
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
U.S. RELATED-16.7%
Commonwealth of Puerto Rico 5.30%, 7/1/2004 (Insured; MBIA)................. $ 1,000,000 $ 1,037,490
Commonwealth of Puerto Rico Highway and Transportation Authority,
Highway Revenue Refunding:
5.875%, 7/1/1999...................................................... 1,500,000 1,573,575
5.30%, 7/1/2004....................................................... 10,200,000 10,270,074
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................ 1,800,000 1,856,952
Virgin Islands, Subordinate Tax (Insurance Claims Fund Program-
General Obligation Matching Fund) 5.65%, 10/1/2003...................... 3,700,000 3,795,682
Virgin Islands Public Finance Authority,
Revenue Refunding Matching Fund Loan Notes:
6.90%, 10/1/2001...................................................... 2,000,000 2,128,420
7%, 10/1/2002......................................................... 750,000 804,773
Virgin Islands Water and Power Authority, Water Systems Revenue
7.20%, 1/1/2002......................................................... 400,000 416,748
----------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $127,052,725)..................................................... $130,334,639
===========
SHORT-TERM MUNICIPAL INVESTMENT-.4%
U.S. RELATED;
Puerto Rico Electric Power Authority, Revenue, VRDN
3.65% (Insured; FSA) (b) (cost $500,000)................................ $ 500,000 $ 500,000
============
TOTAL INVESTMENTS-100.0%
(cost $127,552,725)..................................................... $130,834,639
============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- ------- ----------------- -------------------
<S> <C> <C> <C>
AAA Aaa AAA 34.4%
AA Aa AA 34.9
A A A 18.3
BBB Baa BBB 6.9
Not Rated(d) Not Rated(d) Not Rated(d) 5.5
------
100.0%
=======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(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 refunded date.
(b) Security payable on demand. The interest rate, which is subject to
change, is based upon prime rates or an index of market interest rates.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) Securities which, while not rated by Fitch, Moody's or Standard and
Poor's, have been determined by the Manager to be
of comparable quality to those rated securities in which the Fund may
invest.
(e) At September 30, 1995, the Fund had $52,129,835 (39.2% of net
assets) invested in securities whose payment of principal and interest is
dependent upon revenues generated from city municipal projects.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $127,552,725)-see statement..................................... $130,834,639
Interest receivable..................................................... 2,075,669
Receivable for investment securities sold............................... 1,428,716
Prepaid expenses........................................................ 11,562
----------
134,350,586
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 48,987
Due to Custodian........................................................ 336,138
Payable for investment securities purchased............................. 992,065
Payable for shares of Beneficial Interest redeemed...................... 51,578
Accrued expenses........................................................ 60,684 1,489,452
--------- ---------
NET ASSETS ................................................................ $132,861,134
=============
REPRESENTED BY:
Paid-in capital......................................................... $132,102,554
Accumulated undistributed investment income-net......................... 16,494
Accumulated net realized capital losses and distributions
in excess of net realized gain on investments......................... (2,539,828)
Accumulated net unrealized appreciation on investments-Note 3........... 3,281,914
-----------
NET ASSETS at value applicable to 9,895,805 outstanding shares of
Beneficial Interest, equivalent to $13.43 per share (unlimited number of
$.001 par value shares authorized)...................................... $132,861,134
===========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $3,464,355
EXPENSES:
Management fee-Note 2(a).............................................. $ 395,412
Shareholder servicing costs-Note 2(b)................................. 97,442
Professional fees..................................................... 21,917
Trustees' fees and expenses-Note 2(c)................................. 16,223
Prospectus and shareholders' reports.................................. 12,142
Custodian fees........................................................ 6,875
Registration fees..................................................... 803
Miscellaneous......................................................... 27,722
--------
578,536
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 138,949
--------
TOTAL EXPENSES.................................................. 439,587
---------
INVESTMENT INCOME-NET........................................... 3,024,768
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (214,826)
Net unrealized appreciation on investments.............................. 4,145,509
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 3,930,683
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $6,955,451
===========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MARCH 31, SEPTEMBER 30, 1995
1995 (UNAUDITED)
-------------- ----------------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 6,944,152 $ 3,024,768
Net realized (loss) on investments................................ (2,222,394) (214,826)
Net unrealized appreciation on investments for the period......... 1,805,156 4,145,509
------------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ 6,526,914 6,955,451
------------- ----------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net........................................ (6,944,152) (3,008,274)
In excess of net realized gain on investments..................... (8,171) --
------------- ----------
TOTAL DIVIDENDS................................................. (6,952,323) (3,008,274)
------------- ----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold..................................... 85,801,823 15,085,639
Dividends reinvested.............................................. 5,437,554 2,330,590
Cost of shares redeemed........................................... (99,937,660) (20,183,026)
------------- ----------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS.. (8,698,283) (2,766,797)
------------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... (9,123,692) 1,180,380
NET ASSETS:
Beginning of period............................................... 140,804,446 131,680,754
------------- ----------
End of period (including undistributed investment income-net; $16,494
on September 30, 1995).......................................... $131,680,754 $132,861,134
============= ===========
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 6,728,262 1,135,482
Shares issued for dividends reinvested............................ 424,237 175,309
Shares redeemed................................................... (7,897,962) (1,521,002)
------------- ----------
NET (DECREASE) IN SHARES OUTSTANDING............................ (745,463) (210,211)
============= ===========
See independent accountants' review report and notes to financial statements.
</TABLE>
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 period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED MARCH 31, SEPTEMBER 30, 1995
---------------------------------------
PER SHARE DATA: 1993(1) 1994 1995 (UNAUDITED)
------- ------- ------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period...... $12.50 $13.18 $12.98 $13.03
------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income-net..................... .58 .69 .65 .30
Net realized and unrealized gain (loss)
on investments.......................... .68 (.19) .05 .40
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS.... 1.26 .50 .70 .70
------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income-net...... (.58) (.69) (.65) (.30)
Dividends in excess of net realized
gain on investments..................... -- (.01) -- --
------- ------- ------- -------
TOTAL DISTRIBUTIONS................. (.58) (.70) (.65) (.30)
------- ------- ------- -------
Net asset value, end of period............ $13.18 $12.98 $13.03 $13.43
======= ======= ======= =======
TOTAL INVESTMENT RETURN....................... 12.33%(2) 3.64% 5.60% 10.69%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets... -- .01% .34% .67%(2)
Ratio of net investment income to
average net assets...................... 5.21%(2) 5.07% 5.08% 4.58%(2)
Decrease reflected in above expense ratios due to
undertakings by the Manager............. 1.18%(2) .84% .50% .21%(2)
Portfolio Turnover Rate................... 37.94%(3) 11.47% 31.66% 6.69%(3)
Net Assets, end of period (000's Omitted). $75,597 $140,804 $131,681 $132,861
(1) From May 27, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act") as
a non-diversified open-end management investment
company. Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales charge. The Distributor, located at One Exchange Place, Boston,
Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $611,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1995.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The carryover does not include net realized securities losses from
November 1, 1994 through March 31, 1995 which are treated,
for Federal income tax purposes, as arising in fiscal 1996. If not applied,
the carryover expires in fiscal 2003.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. However, the Manager had
undertaken from April 1, 1995 through September 30, 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
reduction in management fee, pursuant to the undertakings, amounted to
$138,949 for the six months ended September 30, 1995.
The Manager has currently undertaken through March 31, 1996 to reduce the
management fee paid by, or reimburse such excess expenses of the Fund, to the
extent that the Fund's aggregate annual expenses (exclusive of certain
expenses as described above) exceed an annual rate of .80 of 1% of the
average daily value of the Funds' net assets.
The undertaking may be modified by the Manager from time to time,
providing 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 six months ended September 30, 1995, the Fund was charged an
aggregate of $43,141 pursuant to the Shareholder Services Plan.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $10,897,116 and $13,778,545, respectively, for the six months
ended September 30, 1995, and consisted entirely of long-term and short-term
municipal investments.
At September 30, 1995, accumulated net unrealized appreciation on
investments was $3,281,914, consisting of $3,639,576 gross unrealized
appreciation and $357,662 gross unrealized depreciation.
At September 30, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Connecticut Intermediate Municipal Bond Fund, including the statement
of investments, as of September 30, 1995, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended September 30, 1995. These financial statements and
financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
March 31, 1995 and financial highlights for each of the three years in the
period ended March 31, 1995 and in our report dated May 1, 1995, we expressed
an unqualified opinion on such statement of changes in net assets and
financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
November 2, 1995
[Dreyfus lion "d" logo]
DREYFUS CONNECTICUT INTERMEDIATE
MUNICIPAL BOND FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 914SA959
[Dreyfus logo]
Connecticut
Intermediate
Municipal Bond
Fund
Semi-Annual
Report
September 30, 1995
