LETTER TO SHAREHOLDERS
Dear Shareholder:
At the close of the fiscal year ended March 31, 1995, the net asset value
of the Fund was $13.03 per share which was approximately $.05 (.39%) a share
higher than the closing price as our fiscal year ended March 31, 1994,
adjusted for capital gain distributions. Income dividends of approximately
$.650 per share were paid during this period, which translates into a
distribution rate per share of 4.99%, based on the March 31 closing net asset
value per share of $13.03, adjusted for capital gain distributions. We are
pleased to report that all dividends paid from the net investment income
during this period were exempt from Federal and State of Connecticut income
taxes, although certain shareholders may be subject to the Federal
Alternative Minimum Tax (AMT) on some portfolio income.
During the past fiscal year, the Fund saw both sides of a volatile market
with the Bond Buyer Revenue Bond Index increasing a stunning 117 basis
points.* Our method of coping with such turbulence was to sell lower coupon
bonds and to buy more yield within the higher-rated categories. This strategy
placed approximately 53% of the portfolio in AAA and AA securities and helped
to cushion the negative impact of the market. By the end of 1994, the havoc
had subsided and the market began to recover.
Factors which negatively affected the performance of the Fund during the
past fiscal year included interest rate increases by the Federal Reserve
Board, inflation pressures, certain conditions in the municipal marketplace,
and the outflow of nearly 6% of the Fund's assets. By the first quarter of
1995, however, these pressures all had abated, and the market began to
recover. By the end of March, the Fund achieved a 3-month total return
ranking of 15 out of 73 funds in the Other States Intermediate Municipal Debt
Funds Category as reported by Lipper Analytical Services, Inc. For the fiscal
year ended March 31, 1995, the Fund ranked 18 out of 60 funds in the same
category.** The Fund currently is fully invested and continues to emphasize
income in accordance with the tenets of the Prospectus. Of course, past
performance is no guarantee of future results.
As we moved into 1995, new issuance became progressively less frequent,
and the secondary market's prices began moving higher. Supply continues to be
the focus of our market to the extent that one has to consider whether the
market's strength is really substantive, or merely the result of lack of
supply. We lean toward the latter. To this extent, our current strategy has
been to swap out of lower-coupon bonds and replace these holdings with
coupons that are 125 to 150 basis points higher. We believe this slightly
defensive posture provides a hedge which will enhance income until the market
further defines itself.
We continue to digest all of the variables, both real and perceived,
which contribute to the market's changing complexion, and we transact our
daily Fund business with an eye toward achieving our shareholders' investment
goals. As always, we continue to make our best effort to prudently manage
your portfolio through the economic and political events that could affect
Fund performance. In addition, we have provided a current Statement of
Investments and recent financial statements for your review.
We greatly appreciate your investment in the Fund, and look forward to
serving your investment needs as we move forward.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 17, 1995
New York, N.Y.
* The Bond Buyer Revenue Bond Index is a weekly index published by the BOND
BUYER giving the average yield of 25 long-term revenue bonds currently
available in the marketplace.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - The Fund's rankings reflect the
waiver of a portion of the Fund's management fee payable without which the
Fund's returns and rankings would have been lower. This Lipper Category
reflects the performance of funds which concentrate investments in 19
different states, including Connecticut. Yield, share price, and investment
return fluctuate and an investor may receive more or less than original cost
upon redemption.
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
Dollars
$12,048
Lehman Brothers 10-Year Municipal Bond Index*
$11,833
Dreyfus Connecticut Intermediate Municipal
Bond Fund
*Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (6/26/92)
MARCH 31, 1995 TO MARCH 31, 1995
------------- --------------
5.60% 6.28%
Past performance is not predictive of future performance.
The above graph 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 maintains
a portfolio with a weighted-average maturity ranging 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, geographically unrestricted
10-year tax exempt bond market, consisting of municipal bonds with maturities
of more than 8 years and less than 12 years. The Index does not take into
account charges, fees and other expenses. Also, unlike the Fund which
principally limits investments to Connecticut municipal obligations, the
Index is not State-specific. Further information relating to Fund
performance, including expense reimbursements, is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-99.6% AMOUNT VALUE
------- -------
<S> <C> <C>
CONNECTICUT-80.9%
Cheshire:
4.75%, 8/15/2003........................................................ $ 530,000 $ 513,247
4.90%, 8/15/2004........................................................ 530,000 516,755
5%, 8/15/2005........................................................... 530,000 518,229
5.10%, 8/15/2006........................................................ 530,000 519,225
Columbia:
5.20%, 6/15/2002........................................................ 265,000 268,312
5.30%, 6/15/2003........................................................ 265,000 269,028
5.40%, 6/15/2004........................................................ 265,000 269,786
State of Connecticut:
5.80%, 11/15/2001....................................................... 1,000,000 1,044,560
6.10%, 3/15/2002........................................................ 3,500,000 3,706,885
5.80%, 11/15/2002....................................................... 1,500,000 1,567,440
5.70%, 8/15/2007........................................................ 1,500,000 1,525,005
COP (Middletown Courthouse Facilities Project):
5.90%, 12/15/2001 (Insured; MBIA)..................................... 250,000 261,648
6%, 12/15/2002 (Insured; MBIA)........................................ 750,000 790,058
Clean Water Fund Revenue:
5.40%, 4/1/2003....................................................... 1,000,000 1,011,640
5.50%, 4/1/2004....................................................... 1,245,000 1,261,745
5.40%, 6/1/2007....................................................... 1,805,000 1,777,979
Special Tax Obligation Revenue (Transit Infrastructure):
6.10%, 10/1/2001...................................................... 2,000,000 2,106,080
5.60%, 9/1/2002....................................................... 3,000,000 3,069,210
7.60%, 9/1/2007 (Prerefunded 9/1/1997) (a)............................ 1,000,000 1,083,340
Refunding 5.70%, 2/15/2001............................................ 500,000 514,255
Connecticut Airport, Revenue Refunding (Bradley International Airport):
7.10%, 10/1/1995 (Insured; FGIC)........................................ 1,040,000 1,053,780
7.20%, 10/1/1997 (Insured; FGIC)........................................ 1,000,000 1,057,350
Connecticut Development Authority,
Economic Development Projects Revenue Refunding 5.60%, 11/15/2004....... 1,000,000 1,011,510
Connecticut Health & Educational Facilities Authority, Revenue:
(New Britain Memorial Hospital) 7.50%, 7/1/2006......................... 1,000,000 1,030,040
(Quinnipiac College) 5.625%, 7/1/2003................................... 2,300,000 2,175,570
(Sacred Heart University) 5.35%, 7/1/2004............................... 1,000,000 974,310
(The Griffin Hospital):
5.30%, 7/1/2000....................................................... 500,000 475,065
5.50%, 7/1/2001....................................................... 500,000 470,615
5.60%, 7/1/2002....................................................... 500,000 467,645
5.70%, 7/1/2003....................................................... 500,000 465,130
(University of Hartford):
6.20%, 7/1/2001....................................................... 750,000 742,815
6.25%, 7/1/2002....................................................... 700,000 690,165
(William W. Backus Hospital):
5.40%, 7/1/2000....................................................... 285,000 280,759
5.80%, 7/1/2004....................................................... 250,000 244,297
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------- -------
CONNECTICUT (CONTINUED)
Connecticut Higher Education Supplemental Loan Authority, Revenue
(Family Education Loan Program):
5.70%, 11/15/2004..................................................... $1,515,000 $ 1,511,546
5.80%, 11/15/2005..................................................... 2,080,000 2,119,478
5.90%, 11/15/2006..................................................... 2,180,000 2,230,467
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
6.90%, 11/15/1998....................................................... 2,500,000 2,589,275
5.95%, 11/15/2002....................................................... 2,000,000 2,077,960
6.05%, 11/15/2002....................................................... 350,000 364,255
5.90%, 5/15/2006........................................................ 1,000,000 1,027,840
5.60%, 11/15/2006....................................................... 1,100,000 1,095,270
Connecticut Regional School District Number 5:
5.25%, 1/15/2004 (Insured; MBIA)........................................ 400,000 400,804
5.40%, 1/15/2005 (Insured; MBIA)........................................ 400,000 401,472
5.50%, 1/15/2006 (Insured; MBIA)........................................ 400,000 403,728
Connecticut Resources Recovery Authority,
Mid-Connecticut Systems Refunding:
5.60%, 11/15/1999..................................................... 2,500,000 2,537,375
5.75%, 11/15/2000..................................................... 2,000,000 2,044,100
Danbury:
5.10%, 8/15/2003........................................................ 815,000 813,297
5.25%, 8/15/2004........................................................ 815,000 817,934
Derby:
5.40%, 5/15/2004 (Insured; AMBAC)....................................... 420,000 424,187
5.50%, 5/15/2005 (Insured; AMBAC)....................................... 620,000 627,155
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project):
5.15%, 1/1/2005....................................................... 1,990,000 1,763,697
5.25%, 1/1/2006....................................................... 2,145,000 1,925,845
East Hampton:
5.25%, 7/15/2004 (Insured; FGIC)........................................ 300,000 299,538
5.40%, 7/15/2005 (Insured; FGIC)........................................ 305,000 306,168
5.50%, 7/15/2006 (Insured; FGIC)........................................ 305,000 305,735
East Lyme:
5.20%, 8/1/2003......................................................... 425,000 425,536
5.60%, 8/1/2009......................................................... 415,000 412,136
Groton Town:
5%, 8/15/2005........................................................... 490,000 474,933
5%, 8/15/2006........................................................... 490,000 470,253
Guilford:
5.25%, 1/15/2004........................................................ 300,000 297,684
5.40%, 1/15/2005........................................................ 325,000 323,261
5.50%, 1/15/2006........................................................ 325,000 324,444
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------- -------
CONNECTICUT (CONTINUED)
Guilford (continued):
Refunding:
5.40%, 10/15/2001..................................................... $ 1,215,000 $ 1,236,372
5.50%, 10/15/2002..................................................... 1,000,000 1,020,360
Hamden:
5.25%, 10/1/2001........................................................ 445,000 449,877
5.30%, 10/1/2002........................................................ 440,000 444,334
5.40%, 10/1/2003........................................................ 425,000 430,198
Meriden 5.50%, 11/15/2001 (Insured; MBIA)................................... 1,300,000 1,356,264
Montville 6%, 6/15/2000..................................................... 575,000 600,748
New Britain:
5.375%, 3/1/2003 (Insured; MBIA)........................................ 750,000 759,847
5.50%, 3/1/2004 (Insured; MBIA)......................................... 1,000,000 1,016,850
New Fairfield 4.80%, 3/15/2003 (Insured; MBIA).............................. 550,000 535,799
New Haven:
6.50%, 12/1/2002........................................................ 1,410,000 1,425,256
6.75%, 12/1/2005........................................................ 845,000 918,490
New London:
5.10%, 10/1/2002 (Insured; MBIA)........................................ 300,000 299,997
5.20%, 10/1/2003 (Insured; MBIA)........................................ 575,000 575,391
New Milford:
5.20%, 8/1/2003......................................................... 550,000 549,588
5.40%, 8/1/2006......................................................... 380,000 381,246
5.50%, 8/1/2007......................................................... 425,000 426,475
Norwalk Maritime Center Authority, Revenue Refunding (Maritime Center
Project):
5.40%, 2/1/2002......................................................... 635,000 646,557
5.50%, 2/1/2003......................................................... 670,000 684,037
Norwich 5.75%, 9/15/2005.................................................... 875,000 904,846
South Central Connecticut Regional Water Authority, Water Systems Revenue:
5.10%, 8/1/2000 (Insured; FGIC)......................................... 3,000,000 3,013,680
5.50%, 8/1/2003 (Insured; FGIC)......................................... 2,000,000 2,031,880
5.50%, 8/1/2004 (Insured; FGIC)......................................... 540,000 545,843
Southington:
5.40%, 9/15/2005 (Insured; MBIA)........................................ 455,000 456,788
5.50%, 9/15/2006 (Insured; MBIA)........................................ 455,000 457,675
5.60%, 9/15/2007 (Insured; MBIA)........................................ 455,000 458,813
Stamford:
6.625%, 3/15/2004....................................................... 2,750,000 3,058,853
7.75%, 1/15/2005........................................................ 1,650,000 1,975,017
Stratford:
4.60%, 11/1/2004 (Insured; FGIC)........................................ 3,500,000 3,230,745
5.625%, 11/1/2007 (Insured; FGIC)....................................... 4,365,000 4,372,770
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------- -------
CONNECTICUT (CONTINUED)
Vernon:
5.30%, 9/15/2004 (Insured; MBIA)........................................ $360,000 $ 363,722
5.40%, 9/15/2005 (Insured; MBIA)........................................ 360,000 364,579
5.50%, 9/15/2006 (Insured; MBIA)........................................ 360,000 365,710
Wallingford:
5.20%, 6/15/2001........................................................ 400,000 406,324
5.30%, 6/15/2002........................................................ 400,000 407,396
5.40%, 6/15/2003........................................................ 400,000 408,736
Refunding 5.30%, 6/1/2004............................................... 500,000 505,020
Waterbury:
4.90%, 4/15/2002 (Insured: FGIC)........................................ 1,650,000 1,629,689
5%, 4/15/2003 (Insured: FGIC)........................................... 2,060,000 2,039,812
West Haven:
6%, 8/15/2000........................................................... 350,000 348,282
6%, 9/1/2009............................................................ 480,000 485,155
Westport:
5.10%, 6/15/2003........................................................ 500,000 500,290
5.20%, 6/15/2004........................................................ 500,000 501,045
U.S. RELATED-18.7%
Guam Government 4.70%, 11/15/2002........................................... 2,365,000 2,191,243
Commonwealth of Puerto Rico:
5.25%, 7/1/2001......................................................... 1,000,000 988,500
5.30%, 7/1/2004 (Insured; MBIA)......................................... 1,000,000 1,005,720
Commonwealth of Puerto Rico Highway and Transportation Authority,
Highway Revenue Refunding:
5.875%, 7/1/1999. ................................................... 1,500,000 1,540,770
5.30%, 7/1/2004. ..................................................... 10,200,000 9,803,118
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................ 1,800,000 1,802,304
Virgin Islands, Subordinate Tax (Insurance Claims Fund Program-
General Obligation Matching Fund) 5.65%, 10/1/2003...................... 3,700,000 3,670,474
Virgin Islands Public Finance Authority,
Revenue Refunding Matching Fund Loan Notes:
6.90%, 10/1/2001...................................................... 2,000,000 2,089,160
7%, 10/1/2002......................................................... 750,000 786,923
Virgin Islands Water and Power Authority, Water Systems Revenue
7.20%, 1/1/2002......................................................... 400,000 413,504
-------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $130,294,519)..................................................... $129,430,923
============
SHORT-TERM MUNICIPAL INVESTMENT-.4%
CONNECTICUT;
State of Connecticut, Special Tax Obligation Revenue, VRDN (Transit
Infrastructure)
4.35%, (LOC; Industrial Bank of Japan) (b,c) (cost $500,000)............ $500,000 $500,000
========
TOTAL INVESTMENTS-100.0%
(cost $130.794,518)..................................................... $129,930,923
=============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company VRDN Variable rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ----- ----- -------------- ----------------
<S> <C> <C> <C>
AAA Aaa AAA 30.5%
AA Aa AA 33.2
A A A 20.6
BBB Baa BBB 9.9
F1 MIG1 SP1 .4
Not Rated(e) Not Rated(e) Not Rated(e) 5.4
-----
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) Securities payable on demand. The interest rate, which is subject to
change, is based upon prime rates or an index of market interest rates.
(c) Secured by letters of credit.
(d) Fitch currently provides creditwothiness information for a limited
number of investments.
(e) 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.
(f) At March 31, 1995, the Fund had $47,401,799 (36.0%) 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, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $130,794,518)-see statement..................................... $129,930,923
Interest receivable..................................................... 2,157,442
Receivable for shares of Beneficial Interest subscribed................. 5,500
Prepaid expenses........................................................ 14,095
-----------
132,107,960
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 27,714
Due to Custodian........................................................ 273,461
Payable for shares of Beneficial Interest redeemed...................... 75,188
Accrued expenses........................................................ 50,843 427,206
------- --------
NET ASSETS ................................................................ $131,680,754
============
REPRESENTED BY:
Paid-in capital......................................................... $134,869,351
Accumulated net realized capital losses and distributions
in excess of net realized gain on investments-Note 1(c)............... (2,325,002)
Accumulated net unrealized (depreciation) on investments-Note 3......... (863,595)
--------
NET ASSETS at value applicable to 10,106,016 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest authorized) $131,680,754
============
NET ASSET VALUE, offering and redemption price per share
($131,680,754 / 10,106,016 shares)...................................... $13.03
=======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $7,410,693
EXPENSES:
Management fee-Note 2(a).............................................. $ 820,427
Shareholder servicing costs-Note 2(b)................................. 202,494
Auditing fees......................................................... 36,053
Trustees' fees and expenses-Note 2(c)................................. 24,266
Custodian fees........................................................ 14,517
Legal fees............................................................ 11,455
Prospectus and shareholders' reports.................................. 8,864
Registration fees..................................................... 1,855
Miscellaneous......................................................... 31,802
--------
1,151,733
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 685,192
--------
TOTAL EXPENSES.................................................. 466,541
--------
INVESTMENT INCOME-NET.......................................... 6,944,152
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $(2,222,394)
Net unrealized appreciation on investments.............................. 1,805,156
---------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (417,238)
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $6,526,914
=========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
------------------
1994 1995
------- -------
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 6,005,276 $ 6,944,152
Net realized gain (loss) on investments................................. 40,949 (2,222,394)
Net unrealized appreciation (depreciation) on investments for the year.. (4,214,020) 1,805,156
--------- ---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 1,832,205 6,526,914
--------- ---------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net............................................. (6,005,276) (6,944,152)
In excess of net realized gain on investments........................... (56,513) (8,171)
-------- --------
TOTAL DIVIDENDS....................................................... (6,061,789) (6,952,323)
-------- --------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 122,670,991 85,801,823
Dividends reinvested.................................................... 6,048,338 5,437,554
Cost of shares redeemed................................................. (59,282,445) (99,937,660)
--------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS 69,436,884 (8,698,283)
--------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 65,207,300 (9,123,692)
NET ASSETS:
Beginning of year....................................................... 75,597,146 140,804,446
--------- -----------
End of year............................................................. $140,804,446 $131,680,754
=========== ============
SHARES SHARES
---------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 9,054,074 6,728,262
Shares issued for dividends reinvested.................................. 448,656 424,237
Shares redeemed......................................................... (4,387,812) (7,897,962)
--------- ---------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 5,114,918 (745,463)
========= ========
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 the Fund's financial statements.
YEAR ENDED MARCH 31,
-----------------
PER SHARE DATA: 1993(1) 1994 1995
----- ---- -----
<S> <C> <C> <C>
Net asset value, beginning of year.................................... $12.50 $13.18 $12.98
-- -- --
INVESTMENT OPERATIONS:
Investment income-net................................................ .58 .69 .65
Net realized and unrealized gain (loss) on investments................ .68 (.19) .05
-- -- --
TOTAL FROM INVESTMENT OPERATIONS.................................... 1.26 .50 .70
-- -- --
DISTRIBUTIONS:
Dividends from investment income-net................................. (.58) (.69) (.65)
Dividends in excess of net realized gain on investments............... -- (.01) --
-- -- --
TOTAL DISTRIBUTIONS................................................. (.58) (.70) (.65)
-- -- --
Net asset value, end of year.......................................... $13.18 $12.98 $13.03
======= ======= ======
TOTAL INVESTMENT RETURN................................................... 12.33%(2) 3.64% 5.60%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... -- .01% .34%
Ratio of net investment income to average net assets.................. 5.21%(2) 5.07% 5.08%
Decrease reflected in above expense ratios due to
undertakings by the Manager......................................... 1.18%(2) .84% .50%
Portfolio Turnover Rate............................................... 37.94%(3) 11.47% 31.66%
Net Assets, end of year (000's Omitted)............................... $75,597 $140,804 $131,681
(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, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. Dreyfus
Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Funds Service, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
(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 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.
(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 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.
Dividends in excess of net realized gain on investments for financial
statement purposes result primarily from distributions of realized gain
necessary to satisfy tax requirements.
(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 (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, 1994 through June 30, 1994, to waive receipt of the
management fee payable to it by the Fund, and thereafter, had undertaken
through April 13, 1995, to reduce the management fee paid by the Fund, to the
extent that the Fund's aggregate expenses (excluding 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 $685,192 for the year ended March 31, 1995.
The Manager has currently undertaken from April 14, 1995 through June 30,
1995 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 excess of an annual rate of .35
of 1% of the average daily value of the Funds' net assets.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation 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, 1995, the Fund was charged an aggregate of $83,628 pursuant to the
Shareholder Services Plan.
(C) Prior to August 24, 1994, certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each trustee who is not an "affiliated person"
receives an annual fee of $1,500 and an attendance fee of $500 per meeting.
Prior to August 10, 1994, the annual fee was $1,000 and attendance fee was
$250. 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 $76,142,926 and $86,556,770, respectively, for the year ended
March 31, 1995, and consisted entirely of long-term and short-term municipal
investments.
At March 31, 1995, accumulated net unrealized depreciation on investments
was $863,595, consisting of $1,271,952 gross unrealized appreciation and
$2,135,547 gross unrealized depreciation.
At March 31, 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
REPORT OF ERNST & YOUNG LLP, 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, 1995, 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, 1995 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,
1995, 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 1, 1995
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, 1995 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 1995 calendar year
on Form 1099-DIV which will be mailed by January 31, 1996
[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. 914AR953
[Dreyfus logo]
Connecticut
Intermediate
Municipal
Bond Fund
Annual Report
March 31, 1995
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 |
| 3/31/93 | 10,898 | 10,812 |
| 3/31/94 | 11,205 | 11,205 |
| 3/31/95 | 12,048 | 11,833 |
|---------------------------------------------------|
* Source: Lehman Brothers
