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 annual reporting period ended March
31, 1996, your portfolio produced a total return of 7.09%, which includes
bond price changes and interest income.* Income dividends exempt from Federal
and State of Connecticut personal income taxes of approximately $.595 per
share were paid to shareholders.** This is equivalent to an annualized
tax-free distribution rate per share of 4.47%.***
THE ECONOMY
Fresh signs of economic growth appeared in the first quarter of this
year. There were encouraging reports of strength in the housing market -
sales of new homes and new home construction surged in February. Factory
orders increased and order backlogs rose in January for the fifth consecutive
month. At present, there are indications that the labor market may be
tightening. Employment is rising and initial claims for unemployment
insurance are lessening. Some increases in real wages may result, a possibility
well worth noting since worker wages are emerging as a political issue in
this year's election. The surprisingly strong employment figures in February
caused a sharp rise in interest rates. As a result, fixed-income returns for
the first quarter of this year were negative.
Several factors that temporarily depressed economic activity have ended.
With the arrival of spring, the severe winter weather which suppressed
construction and discouraged consumer shopping is over. In addition, the
17-day strike at two General Motors brake-parts plants has been settled. This
strike nearly resulted in a complete shutdown of GM North American
manufacturing.
Apparently satisfied with the pace of economic growth, the Federal
Reserve Board left the Federal Funds rate unchanged in March. Over the past
12 months, the Fed reduced the level of short-term interest rates three times
to spur the sluggish economy, the last reduction occurring on January 31,
1996.
Nevertheless, we are reluctant to paint an overly optimistic business
picture since much economic data still remains mixed. Business capital
spending has been an important stimulant to economic growth over the past few
years, particularly in light of the retrenchment in consumer spending. A
survey by the Commerce Department revealed that businesses plan only modest
increases in spending on new buildings and equipment this year compared to
1995. Overall, the survey indicated that capital spending would rise only
1.5% compared to last year's growth rate of 8.1%. The survey also points out
a significant divergence between the spending plans of manufacturing
companies and those of retailers and wholesalers. Influenced by strong export
growth, capital spending by manufacturers is estimated to rise 7.2%.
Conversely, weak consumer spending has resulted in retailers and wholesalers
cutting their capital spending estimates by 4%. The more cautious approach to
business spending may be an indication that overall economic growth in 1996
will be modest.
THE MARKET
In the beginning of the fiscal year we cautiously embraced the market's
performance and its favorable impact on the Fund. We were, however, wary of
the bond market's strength and its dependence on continued low inflation. We
remained fully invested to a large extent during this improved market, but
alert to the stimulating effect of easing monetary policy and the possibility
of rekindling inflation.
The market subsequently experienced a dramatic downturn late in the first
quarter of 1996. This weakness continued to be more pronounced than the
market had anticipated (some marginal improvement has been seen recently).
Expectations of faster economic growth combined with rising commodity prices
had raised the prospect of future rising inflation.
The most recent market peak in prices was in mid-February, with yields on
good quality 10-year bonds around 4.50%. By early April, prices had declined
and yield levels had risen to 5.15%. Markets rarely move in one direction
over an extended period of time, so we are optimistic that much of the market
correction is behind us. We remain cautious, however, awaiting confirmation of
a market bottom before pursuing a more aggressive strategy.
THE PORTFOLIO
The Fund continues to take a defensive posture for a number of reasons.
There is a very limited supply of Connecticut paper available to maneuver
effectively, issuers have previously attained financing for their capital
programs so overall new issuance is down, and market uncertainty has produced
a constricted trading market.
Giving consideration to these factors, the Fund bought a number of
discount bonds in both the primary and secondary markets with a focus on
performance-based coupons. This was necessary since the portfolio was largely
defensive last year in order to contend with a market which possessed tenuous
overtones. By the end of this year's second quarter however, it became clear
that the market had the ability to trend upward. As this scenario unfolded,
the discount bonds purchased earlier in the year soon reached premium levels
and the portfolio was once again seeking ways to bolster performance. This
strategy was well founded since the bond market incrementally gained positive
momentum through year end. However, as the market seemed to be nearing a new
high, availability of quality structured discount bonds faded and the Fund
focused on selling holdings with short calls and short maturities.
Additionally, as bonds seemed to have reached their peak levels of
performance, the Fund sold premium bonds and took profits as we sensed an end
to the rally.
The economy is at a virtual crossroads where growth is concerned. Going
forward, we anticipate market volatility until the rate of economic growth is
definitively ascertained. We are attempting to increase our cash position to
capitalize on the potential of a rebound early on but once again maintain a
defensive posture with an eye toward improving the structure of the bonds
held in the portfolio. The Fund is conservatively positioned to withstand the
uncertainty in the economy and the negative impact of volatility should
economic growth expand rapidly.
Our primary tasks are to protect principal, maintain liquidity, and
distribute a high level of current tax exempt income to you, our
shareholders. These factors continue to motivate our portfolio management
decisions. The high level of volatility exhibited by the market in recent
years underscores the need to maintain a disciplined and longer-term
perspective.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
April 15, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
*** Annualized distribution rate per share is based upon dividends per
share paid from net investment income during the period, divided by the net
asset value per share at the end of the period.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND MARCH 31, 1996
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:
Dollars
$13,116
Lehman Brothers
10-Year Municipal
Bond Index*
$12,672
Dreyfus Connecticut
Intermediate
Municipal Bond Fund
*Source: Lehman Brothers]
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (6/26/92)
MARCH 31, 1996 TO MARCH 31, 1996
_____________ ______________________
7.09% 6.49%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in 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 shown in the line graph takes into account fees and
expenses. Unlike the Fund, the Lehman Brothers 10-Year Municipal Bond Index
is an unmanaged total return performance benchmark for the investment-grade,
geographically unrestricted 10-year tax exempt bond market, consisting of
municipal bonds with maturities of more than 8 years and less than 12 years.
The Index does not take into account charges, fees and other expenses. Also,
unlike the Fund which principally limits investments to Connecticut municipal
obligations, the Index is not State specific. These factors can contribute to
the Index potentially outperforming the Fund. Further information relating to
Fund performance, including expense reimbursements, if applicable,is
contained in the Financial Highlights section of the Prospectus and elsewhere
in this report.
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-95.2% AMOUNT VALUE
_______ _______
<S> <C> <C>
CONNECTICUT-86.6%
Cheshire:
4.75%, 8/15/2003........................................................ $ 530,000 $ 530,137
4.90%, 8/15/2004........................................................ 530,000 531,961
5%, 8/15/2005........................................................... 530,000 532,135
5.10%, 8/15/2006........................................................ 530,000 532,300
Columbia:
5.20%, 6/15/2002........................................................ 265,000 274,571
5.30%, 6/15/2003........................................................ 265,000 275,843
5.40%, 6/15/2004........................................................ 265,000 277,036
State of Connecticut:
5.80%, 11/15/2001....................................................... 1,000,000 1,061,950
6.10%, 3/15/2002........................................................ 3,840,000 4,125,888
5.80%, 11/15/2002....................................................... 1,500,000 1,598,295
5.70%, 8/15/2007........................................................ 1,500,000 1,565,790
Airport, Revenue Refunding (Bradley International Airport):
7.20%, 10/1/1997 (Insured; FGIC)...................................... 1,000,000 1,048,020
7.35%, 10/1/2001 (Insured; FGIC)...................................... 1,000,000 1,128,010
COP (Middletown Courthouse Facilities Project):
5.90%, 12/15/2001 (Insured; MBIA)..................................... 250,000 266,180
6%, 12/15/2002 (Insured; MBIA)........................................ 750,000 805,275
Clean Water Fund Revenue:
5.40%, 4/1/2003....................................................... 1,000,000 1,036,840
5.50%, 4/1/2004....................................................... 1,245,000 1,296,070
5.40%, 6/1/2007....................................................... 1,805,000 1,829,530
5.125%, 7/1/2007 (Insured; MBIA) (a).................................. 2,000,000 1,986,160
Special Tax Obligation Revenue (Transportation Infrastructure):
6.10%, 10/1/2001...................................................... 2,000,000 2,144,960
5.60%, 9/1/2002....................................................... 3,000,000 3,152,310
Refunding:
5.70%, 2/15/2001.................................................. 500,000 524,315
5.125%, 9/1/2005.................................................. 1,000,000 1,011,130
Connecticut Health & Educational Facilities Authority, Revenue:
(Connecticut State University System) 5%, 11/1/2007 (Insured; MBIA)..... 1,820,000 1,792,408
(Greenwich Hospital) 5.75%, 7/1/2006 (Insured; MBIA) (a)................ 1,000,000 1,052,550
(Kent School) 5.10%, 7/1/2007 (Insured; MBIA)........................... 500,000 496,580
(The Griffin Hospital):
5.60%, 7/1/2002....................................................... 500,000 493,220
5.70%, 7/1/2003....................................................... 500,000 492,090
(University of Hartford):
6.20%, 7/1/2001....................................................... 750,000 754,913
6.25%, 7/1/2002....................................................... 700,000 701,708
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
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 $ 288,861
5.80%, 7/1/2004....................................................... 250,000 255,898
Connecticut Higher Education Supplemental Loan Authority, Revenue
(Family Education Loan Program):
5.70%, 11/15/2004..................................................... 1,480,000 1,501,031
5.80%, 11/15/2005..................................................... 2,030,000 2,035,034
5.90%, 11/15/2006..................................................... 2,130,000 2,135,666
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
6.90%, 11/15/1998....................................................... 2,500,000 2,565,425
5.95%, 11/15/2002....................................................... 2,000,000 2,076,020
6.05%, 11/15/2002....................................................... 350,000 362,901
5.90%, 5/15/2006........................................................ 1,000,000 1,033,500
5.60%, 11/15/2006....................................................... 1,100,000 1,107,700
Connecticut Municipal Electric Energy Cooperative, Power Supply
System Revenue, Refunding 5%, 1/1/2010 (Insured; MBIA).................. 1,820,000 1,737,063
Connecticut Regional School District Number 5:
5.25%, 1/15/2004 (Insured; MBIA)........................................ 400,000 412,216
5.40%, 1/15/2005 (Insured; MBIA)........................................ 400,000 414,844
5.50%, 1/15/2006 (Insured; MBIA)........................................ 400,000 414,780
Connecticut Resources Recovery Authority,
Mid-Connecticut Systems Refunding:
5.60%, 11/15/1999..................................................... 2,500,000 2,576,625
5.75%, 11/15/2000..................................................... 2,000,000 2,076,200
Danbury:
5.10%, 8/15/2003........................................................ 815,000 836,361
5.25%, 8/15/2004........................................................ 815,000 841,430
Derby:
5.40%, 5/15/2004 (Insured; AMBAC)....................................... 420,000 437,489
5.50%, 5/15/2005 (Insured; AMBAC)....................................... 620,000 648,235
Eastern Connecticut Resources Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project) 5.25%, 1/1/2006........................... 820,000 785,798
East Hampton:
5.25%, 7/15/2004 (Insured; FGIC)........................................ 300,000 309,642
5.40%, 7/15/2005 (Insured; FGIC)........................................ 305,000 316,831
5.50%, 7/15/2006 (Insured; FGIC)........................................ 305,000 317,755
East Haven 5.20%, 11/1/2008 (Insured; FGIC)................................. 790,000 781,626
East Lyme:
5.20%, 8/1/2003......................................................... 425,000 437,368
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CONNECTICUT (CONTINUED)
East Lyme (continued):
5.60%, 8/1/2009......................................................... $ 415,000 $ 422,960
Easton:
5.05%, 6/1/2007......................................................... 270,000 266,738
5.15%, 6/1/2008......................................................... 270,000 266,452
5.25%, 6/1/2009......................................................... 245,000 241,207
Glastonbury 6%, 10/15/2006.................................................. 220,000 239,265
Guilford:
5.25%, 1/15/2004........................................................ 300,000 307,200
5.40%, 1/15/2005........................................................ 325,000 334,718
5.50%, 1/15/2006........................................................ 325,000 334,675
Refunding:
5.40%, 10/15/2001..................................................... 1,215,000 1,263,576
5.50%, 10/15/2002..................................................... 1,000,000 1,046,030
Hamden:
5.25%, 10/1/2001........................................................ 445,000 459,912
5.30%, 10/1/2002........................................................ 440,000 455,770
5.40%, 10/1/2003........................................................ 425,000 442,132
Hartford 5.30%, 10/1/2008 (Insured; FGIC)................................... 1,000,000 1,002,130
Manchester 7%, 10/1/2002.................................................... 355,000 400,841
Meriden 5.50%, 11/15/2001 (Insured; MBIA)................................... 1,300,000 1,380,847
Montville 6%, 6/15/2000..................................................... 575,000 607,821
New Britain:
5.375%, 3/1/2003 (Insured; MBIA)........................................ 750,000 778,470
5.50%, 3/1/2004 (Insured; MBIA)......................................... 1,000,000 1,043,960
New Fairfield 4.80%, 3/15/2003 (Insured; MBIA).............................. 550,000 554,037
New Haven:
5.25%, 8/1/2006 (Insured; FGIC)......................................... 1,500,000 1,492,800
6.50%, 12/1/2002........................................................ 1,410,000 1,456,742
6.75%, 12/1/2005........................................................ 845,000 932,238
New London:
5.10%, 10/1/2002 (Insured; MBIA)........................................ 300,000 307,758
5.20%, 10/1/2003 (Insured; MBIA)........................................ 575,000 591,721
New Milford:
5.20%, 8/1/2003......................................................... 550,000 565,323
5.40%, 8/1/2006......................................................... 380,000 393,213
5.50%, 8/1/2007......................................................... 425,000 441,885
Norwalk Maritime Center Authority, Revenue Refunding (Martime Center
Project):
5.40%, 2/1/2002......................................................... 635,000 658,247
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CONNECTICUT (CONTINUED)
Norwalk Maritime Center Authority, Revenue Refunding
(Martime Center Project) (continued):
5.50%, 2/1/2003......................................................... $ 670,000 $ 698,013
Norwich 5.75%, 9/15/2005.................................................... 875,000 929,049
Redding:
6.50%, 4/15/2007........................................................ 200,000 224,224
6.55%, 4/15/2008........................................................ 200,000 225,758
6.60%, 4/15/2009........................................................ 200,000 226,784
South Central Connecticut Regional Water Authority, Water Systems Revenue:
5.10%, 8/1/2000 (Insured; FGIC)......................................... 3,000,000 3,078,960
5.50%, 8/1/2003 (Insured; FGIC)......................................... 2,000,000 2,095,040
5.50%, 8/1/2004 (Insured; FGIC)......................................... 540,000 562,864
Southington:
5.40%, 9/15/2005 (Insured; MBIA)........................................ 455,000 471,180
5.50%, 9/15/2006 (Insured; MBIA)........................................ 455,000 472,408
5.60%, 9/15/2007 (Insured; MBIA)........................................ 455,000 471,203
Stamford:
6.625%, 3/15/2004....................................................... 2,750,000 3,087,453
7.75%, 1/15/2005........................................................ 1,650,000 1,988,844
Stratford:
4.60%, 11/1/2004 (Insured; FGIC)........................................ 2,500,000 2,454,175
7%, 6/15/2005 (Insured; FGIC)........................................... 500,000 574,040
5.625%, 11/1/2007 (Insured; FGIC)....................................... 4,365,000 4,507,212
University of Connecticut 4.75%, 2/1/2008 (Insured; FGIC)................... 3,000,000 2,837,130
Vernon:
5.30%, 9/15/2004 (Insured; MBIA)........................................ 360,000 374,292
5.40%, 9/15/2005 (Insured; MBIA)........................................ 360,000 375,566
5.50%, 9/15/2006 (Insured; MBIA)........................................ 360,000 375,498
Wallingford:
5.20%, 6/15/2001........................................................ 400,000 412,380
5.30%, 6/15/2002........................................................ 400,000 414,404
5.40%, 6/15/2003........................................................ 400,000 416,308
4.80%, 6/15/2009........................................................ 1,385,000 1,298,285
Refunding 5.30%, 6/1/2004............................................... 500,000 515,850
Waterbury:
4.90%, 4/15/2002 (Insured; FGIC)........................................ 1,650,000 1,664,124
5%, 4/15/2003 (Insured; FGIC) (b)....................................... 2,060,000 2,078,808
West Haven:
6%, 8/15/2000........................................................... 350,000 355,751
6%, 9/1/2009............................................................ 480,000 504,461
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
CONNECTICUT (CONTINUED)
Westport:
5.10%, 6/15/2003........................................................ $ 500,000 $ 514,390
5.20%, 6/15/2004........................................................ 500,000 515,970
U.S. RELATED-8.6%
Commonwealth of Puerto Rico, 5.30%, 7/1/2004 (Insured; MBIA)................ 1,000,000 1,035,400
Commonwealth of Puerto Rico Highway and Transportation Authority,
Highway Revenue Refunding 5.875%, 7/1/1999.............................. 1,500,000 1,561,695
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................ 1,800,000 1,859,202
Virgin Islands, Subordinate Tax (Insurance Claims Fund Program-
General Obligation Matching Fund) 5.65%, 10/1/2003...................... 3,345,000 3,443,811
Virgin Islands Public Finance Authority,
Revenue Refunding Matching Fund Loan Notes:
6.90%, 10/1/2001...................................................... 2,000,000 2,109,920
7%, 10/1/2002......................................................... 750,000 795,698
Virgin Islands Water and Power Authority, Water Systems Revenue
7.20%, 1/1/2002......................................................... 400,000 414,180
_______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $122,186,806)..................................................... $124,653,472
=======
SHORT-TERM MUNICIPAL INVESTMENTS-4.8%
U.S. RELATED:
Commonwealth of Puerto Rico Government Development Bank, Refunding VRDN
2.80% (LOC; Credit Suisse) (c,d)........................................ $ 5,400,000 $ 5,400,000
Puerto Rico Electric Power Authority, Revenue, VRDN
3% (Insured; FSA) (d) .................................................. 900,000 900,000
_______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $6,300,000)....................................................... $ 6,300,000
=======
TOTAL INVESTMENTS-100.0%
(cost $128,486,806)..................................................... $130,953,472
=======
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <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 Insurance Corporation
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_____ _____ __________ ____________
<S> <C> <C> <C>
AAA Aaa AAA 43.9%
AA Aa AA 33.2
A A A 9.9
BBB Baa BBB 3.7
F1 M1G1 SP1 4.1
Not Rated (f) Not Rated (f) Not Rated (f) 5.2
____
100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Purchased on a delayed-delivery basis.
(b) Held in a segregated account for the purpose of collateralizing
delayed-delivery security.
(c) Secured by letters of credit.
(d) Security payable on demand. The interest rate, which is subject to
change, is based upon prime rates or an index of market interest rates.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which while not rated by Fitch, Moody's, or Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
(g) At March 31, 1996, the Fund had $53,957,659 (40.2% 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>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $128,486,806)-see statement..................................... $130,953,472
Receivable for investment securities sold............................... 4,374,866
Interest receivable..................................................... 1,996,207
Prepaid expenses........................................................ 8,298
_______
137,332,843
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 62,360
Payable for investment securities purchased............................. 3,042,924
Payable for shares of Beneficial Interest redeemed...................... 2,790
Accrued expenses and other liabilities.................................. 114,909 3,222,983
______ ______
NET ASSETS ................................................................ $134,109,860
=======
REPRESENTED BY:
Paid-in capital......................................................... $134,074,473
Accumulated undistributed investment income-net......................... 31,010
Accumulated net realized (loss) on investments.......................... (2,462,289)
Accumulated net unrealized appreciation on investments-Note 3........... 2,466,666
_______
NET ASSETS at value applicable to 10,042,551 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest
authorized)............................................................. $134,109,860
=======
NET ASSET VALUE, offering and redemption price per share
($134,109,860 / 10,042,551 shares)...................................... $13.35
=======
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1996
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $6,886,803
EXPENSES:
Management fee-Note 2(a).............................................. $ 797,196
Shareholder servicing costs-Note 2(b)................................. 186,269
Professional fees..................................................... 40,832
Trustees' fees and expenses-Note 2(c)................................. 35,386
Prospectus and shareholders' reports.................................. 17,404
Custodian fees........................................................ 14,247
Registration fees..................................................... 1,622
Miscellaneous......................................................... 42,680
_____
TOTAL EXPENSES.................................................. 1,135,636
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 173,101
_____
NET EXPENSES.................................................... 962,535
_____
INVESTMENT INCOME-NET........................................... 5,924,268
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (137,287)
Net unrealized appreciation on investments.............................. 3,330,261
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 3,192,974
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $9,117,242
=====
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
________________________________
1995 1996
_______ _______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 6,944,152 $ 5,924,268
Net realized (loss) on investments...................................... (2,222,394) (137,287)
Net unrealized appreciation on investments for the year................. 1,805,156 3,330,261
_______ _______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 6,526,914 9,117,242
_______ _______
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.............................................. (6,944,152) (5,893,258)
In excess of net realized gain on investments........................... (8,171) _
_______ _______
TOTAL DIVIDENDS....................................................... (6,952,323) (5,893,258)
_______ _______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 85,801,823 33,967,263
Dividends reinvested.................................................... 5,437,554 4,556,107
Cost of shares redeemed................................................. (99,937,660) (39,318,248)
_______ _______
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........ (8,698,283) (794,878)
_______ _______
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... (9,123,692) 2,429,106
NET ASSETS:
Beginning of year....................................................... 140,804,446 131,680,754
_______ _______
End of year (including undistributed investment income-net; $31,010 on
March 31, 1996)....................................................... $131,680,754 $134,109,860
======= =======
SHARES SHARES
_______ _______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 6,728,262 2,530,462
Shares issued for dividends reinvested.................................. 424,237 339,658
Shares redeemed......................................................... (7,897,962) (2,933,585)
_______ _______
NET (DECREASE) IN SHARES OUTSTANDING.................................. (745,463) (63,465)
======= =======
</TABLE>
See notes to financial statements.
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.
<TABLE>
YEAR ENDED MARCH 31,
__________________________________________________
PER SHARE DATA: 1993(1) 1994 1995 1996
___ ___ ___ ___
<S> <C> <C> <C> <C>
Net asset value, beginning of year....................... $12.50 $13.18 $12.98 $13.03
___ ___ ___ ___
INVESTMENT OPERATIONS:
Investment income-net.................................... .58 .69 .65 .60
Net realized and unrealized gain (loss) on investments... .68 (.19) .05 .31
___ ___ ___ ___
TOTAL FROM INVESTMENT OPERATIONS....................... 1.26 .50 .70 .91
___ ___ ___ ___
DISTRIBUTIONS:
Dividends from investment income-net..................... (.58) (.69) (.65) (.59)
Dividends in excess of net realized gain on investments.. - (.01) - -
___ ___ ___ ___
TOTAL DISTRIBUTIONS.................................... (.58) (.70) (.65) (.59)
___ ___ ___ ___
Net asset value, end of year............................. $13.18 $12.98 $13.03 $13.35
=== === === ===
TOTAL INVESTMENT RETURN...................................... 12.33%(2) 3.64% 5.60% 7.09%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................. - .01% .34% .72%
Ratio of net investment income to average net assets..... 5.21%(2) 5.07% 5.08% 4.46%
Decrease reflected in above expense ratios due to
undertakings by the Manager............................ 1.18%(2) .84% .50% .13%
Portfolio Turnover Rate.................................. 37.94%(3) 11.47% 31.66% 19.91%
Net Assets, end of year (000's Omitted).................. $75,597 $140,804 $131,681 $134,110
(1) From May 27, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
</TABLE>
See notes to financial statements.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Connecticut Intermediate Municipal Bond Fund (the "Fund") is
registered under the Investment Company Act of 1940 ("Act") as a
non-diversified open-end management investment company. The Fund's investment
objective is to provide investors with as high a level of current income
exempt from Federal and Connecticut income taxes as is consistent with the
preservation of capital. The Dreyfus Corporation ("Manager") serves as the
Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales charge.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $2,454,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1996. If not
applied, $611,000 of the carryover expires in fiscal 2003 and $1,843,000 of
the carryover expires in fiscal 2004.
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 value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. However, the Manager had
undertaken from April 1, 1995 through 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
Manager has currently undertaken from October 1, 1995 through March 31, 1997
to reduce the management fee paid by, or reimburse such excess expenses of
the Fund, to the extent that the Fund's aggregate annual expenses (exclusive
of certain expenses as described above) exceed an annual rate of .80 of 1% of
the value of the Fund's average daily net assets. The reduction in management
fee, pursuant to the undertakings, amounted to $173,101 for the year ended
March 31, 1996.
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 year ended March 31, 1996, the Fund was charged an aggregate of
$77,459 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $22,401 for the period from
December 1, 1995 through March 31, 1996.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,500 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,
excluding short-term securities, for the year ended March 31, 1996 amounted
to $25,895,481 and $33,575,794, respectively.
At March 31, 1996, accumulated net unrealized appreciation on investments
was $2,466,666, consisting of $2,973,679 gross unrealized appreciation and
$507,013 gross unrealized depreciation.
At March 31, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS 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, 1996, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of March 31, 1996 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Connecticut Intermediate Municipal Bond Fund at March 31,
1996, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
May 3, 1996
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, 1996 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 1996 calendar year
on Form 1099-DIV which will be mailed by January 31, 1997.
[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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 914AR963
[Dreyfus logo]
Connecticut
Intermediate
Municipal Bond
Fund
Annual Report
March 31, 1996
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 |
| 3/31/96 | 13,116 | 12,672 |
|---------------------------------------------------|
* Source: Lehman Brothers
