Connecticut
Intermediate
Municipal Bond
Fund
Semi-Annual
Report
September 30, 1996
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, 1996, your portfolio produced a total return of 2.25%, which
includes bond price changes and interest income.* Income dividends exempt
from Federal and State of Connecticut personal income taxes of approximately
$.296 per share were paid to shareholders.** This is equivalent to an
annualized tax-free distribution rate per share of 4.37%.***
THE ECONOMY
Low inflation in the face of ongoing strong growth in new jobs and low
unemployment remained the big economic story over the reporting period. On
September 24, the Federal Reserve Board's Open Market Committee ("the Fed")
again decided against raising interest rates. Despite what appeared to be a
sharp split within the Fed, the Central Bank kept the Fed Funds rate at
5.25%.
The potential resurgence in inflation has been a primary concern of the
Fed as the economic expansion continues. Yet inflation has remained subdued.
The Consumer Price Index has risen just 2.9% over the past twelve months.
Furthermore, indications of inflation at crude, intermediate and finished
goods levels, as measured by the Producer Price Index, remained well-behaved.
There appear to be few signs of inflation in the production pipeline.
The past inverse relationship between unemployment and inflation has so
far not prevailed during this economic expansion. Most recently, the
unemployment rate fell to 5.1%, its lowest level in seven years. Job growth
has continued to be robust. Yet despite signs of a tightening labor market,
wage gains, considered by many economists to be a harbinger of future
inflation, remained modest, as have virtually all measures of inflation.
Buoyed by such good news, consumers remained confident. The Conference
Board's Consumer Confidence Index has risen since the beginning of the year
and was near a six-year high by the end of the reporting period. Yet, there
were some signs that consumer spending was moderating from its strong pace in
the first half of the year. Retail sales remained subdued all summer.
Consumer borrowing rose over the reporting period, continuing the three-year
trend of steady increases in credit.
Industrial production has risen consistently since February and
businesses showed some signs of inventory accumulation by late summer.
Corporate pricing power still seems to be in check. In a survey of member
corporations released in mid-September, the National Federation of
Independent Business reported that only 20% of its respondents planned to
increase prices in coming months.
Despite all these favorable developments, we are alert for signs of
potential economic excess that could result in a resurgence in inflation.
THE MARKET
During the period, we took a cautious approach to the bond market's
volatility. We were wary of the market's strength and its dependence on
continued low inflation. Also, uncertainty associated with the upcoming
Presidential election fueled the opinions of the market soothsayers and added
an additional ingredient of contention to an already tenuous market.
Overall, we remained fully invested for the most part due to a lack of
supply of bonds with good structural characteristics. We emphasized the sale
of short call and short maturity bonds and tried to establish a more
aggressive stance. We felt it was more important to take a longer-term view
than pursue a market fraught with numerous pitfalls.
Inflationary concerns plagued many investors. This posture was
exacerbated by anticipated moves by the Fed. The market reflected these
concerns by recoiling with every rumor relating to possible Fed action. When
all was said and done, however, the Fed maintained the Fed Funds rate at
5.25%. With the temporary dissipation of that cloud of uncertainty (at least
until the the Fed's next meeting in November), the market responded with a
more positive tone but continued to operate within a moderate range.
THE PORTFOLIO
The Dreyfus Connecticut Intermediate Municipal Bond Fund has taken an
aggressive stance and pursued the purchase of discounted securities because
of their performance potential in a market with very limited new issuance.
Two factors have made performance a challenge. The first relates to the
vastly diminished level of new issues coming to the market. The second
reflects the erratic performance of the long U.S. Treasury bond. Municipal
bond prices are frequently influenced by the long U.S. Treasury bond market,
which has operated within a range for the six-month period ended 9/30/96 of
between 7.19% and 6.69%.
The Fund bought a number of discount bonds in both the primary and
secondary markets when opportunities were present, with a focus on
performance-based coupons. Overall, however, the Fund continues to be
somewhat invested in defensive, higher yielding coupons which proved to be
beneficial in this volatile market. As we move forward, the Fund would
ideally like to invest a larger portion of its assets in discount bonds. In
order to attain this goal, however, more supply needs to enter the
Connecticut bond market. Should this happen, we would be in a better position
to sell premium bonds, take profits, and improve the structural
characteristics of the portfolio.
Our primary goal is 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)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 18, 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.
*** Distribution rate per share is based upon dividends per share paid from
net investment income during the period (annualized), 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, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
----------- ----------
<S> <C> <C>
CONNECTICUT-89.1%
Bethel 8%, 2/15/2003 (Insured; MBIA)........................................ $ 1,000,000 $ 1,172,980
Bridgeport, Refunding 6%, 9/1/2006 (Insured; AMBAC)......................... 1,750,000 1,853,162
Cheshire:
4.75%, 8/15/2003........................................................ 530,000 528,283
4.90%, 8/15/2004........................................................ 530,000 529,322
5.10%, 8/15/2006........................................................ 530,000 530,170
Columbia:
5.20%, 6/15/2002........................................................ 265,000 273,220
5.30%, 6/15/2003........................................................ 265,000 274,423
5.40%, 6/15/2004........................................................ 265,000 275,558
State of Connecticut:
5.80%, 11/15/2001....................................................... 1,000,000 1,055,810
6.10%, 3/15/2002........................................................ 2,000,000 2,134,860
5.80%, 11/15/2002....................................................... 1,500,000 1,588,065
5.70%, 8/15/2007........................................................ 1,500,000 1,558,305
5.125%, 8/15/2011....................................................... 1,000,000 961,780
5.375%, 10/1/2011....................................................... 1,000,000 988,850
Airport Revenue Refunding (Bradley International Airport):
7.20%, 10/1/1997 (Insured; FGIC)...................................... 1,000,000 1,032,180
7.35%, 10/1/2001 (Insured; FGIC)...................................... 1,000,000 1,117,020
Clean Water Fund Revenue:
5.40%, 4/1/2003....................................................... 1,000,000 1,031,770
5.50%, 4/1/2004....................................................... 1,245,000 1,289,446
5.40%, 6/1/2007....................................................... 1,805,000 1,825,054
Refunding 5.125%, 7/1/2007 (Insured; MBIA)............................ 2,000,000 1,980,300
Special Tax Obligation Revenue (Transportation Infrastructure):
5.60%, 9/1/2002....................................................... 3,000,000 3,134,040
Refunding:
5.70%, 2/15/2001.................................................. 500,000 521,440
5.25%, 9/1/2007................................................... 1,115,000 1,118,167
5.25%, 9/1/2007 (Insured; MBIA)................................... 1,360,000 1,360,503
Connecticut Development Authority, Special Obligation
(Connecticut State General Fund) 5.40%, 12/15/2010...................... 1,300,000 1,295,424
Connecticut Health & Educational Facilities Authority, Revenue:
(Connecticut State University System):
5%, 11/1/2007 (Insured; MBIA)......................................... 1,820,000 1,782,781
5.125%, 11/1/2010 (Insured; MBIA)..................................... 1,145,000 1,103,883
(Greenwich Hospital) 5.75%, 7/1/2006 (Insured; MBIA).................... 1,000,000 1,046,630
(Kent School) 5.10%, 7/1/2007 (Insured; MBIA)........................... 500,000 494,865
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
----------- ----------
CONNECTICUT (CONTINUED)
Refunding (Yale New Haven Hospital) 5.50%, 7/1/2010..................... 1,810,000 1,812,154
Connecticut Health & Educational Facilities Authority, Revenue (continued):
(University of Hartford)
6.20%, 7/1/2001....................................................... $ 750,000 $ 758,812
6.25%, 7/1/2002....................................................... 700,000 704,277
(University of New Haven) 6%, 7/1/2006.................................. 1,000,000 999,890
Connecticut Higher Education Supplemental Loan Authority, Revenue
(Family Education Loan Program):
5.70%, 11/15/2004..................................................... 1,450,000 1,470,590
5.80%, 11/15/2005..................................................... 1,985,000 2,023,569
5.90%, 11/15/2006..................................................... 2,085,000 2,127,034
5.50%, 11/15/2008..................................................... 1,675,000 1,670,477
5.60%, 11/15/2009..................................................... 1,775,000 1,772,905
5.65%, 11/15/2010..................................................... 1,875,000 1,869,806
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program):
6.90%, 11/15/1998..................................................... 1,520,000 1,568,336
5.95%, 11/15/2002..................................................... 2,000,000 2,089,080
5.90%, 5/15/2006...................................................... 1,000,000 1,034,190
5.65%, 11/15/2007..................................................... 1,000,000 1,012,370
Connecticut Municipal Electric Energy Cooperative,
Power Supply System Revenue, Refunding:
5%, 1/1/2008 (Insured; MBIA).......................................... 1,500,000 1,462,725
5%, 1/1/2010 (Insured; MBIA).......................................... 1,820,000 1,735,825
Connecticut Regional School District Number 5:
5.25%, 1/15/2004 (Insured; MBIA)........................................ 400,000 410,316
5.40%, 1/15/2005 (Insured; MBIA)........................................ 400,000 412,776
5.50%, 1/15/2006 (Insured; MBIA)........................................ 400,000 412,724
Danbury:
5.10%, 8/15/2003........................................................ 815,000 832,718
5.25%, 8/15/2004........................................................ 815,000 837,421
Derby:
5.40%, 5/15/2004 (Insured; AMBAC)....................................... 420,000 435,229
5.50%, 5/15/2005 (Insured; AMBAC)....................................... 620,000 644,769
Eastern Connecticut Resources Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project) 5.25%, 1/1/2006........................... 820,000 799,131
East Hampton:
5.25%, 7/15/2004 (Insured; FGIC)........................................ 300,000 308,178
5.40%, 7/15/2005 (Insured; FGIC)........................................ 305,000 315,214
5.50%, 7/15/2006 (Insured; FGIC)........................................ 305,000 316,071
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
----------- ----------
CONNECTICUT (CONTINUED)
East Lyme:
5.20%, 8/1/2003......................................................... $ 425,000 $ 435,400
5.60%, 8/1/2009......................................................... 415,000 421,773
Easton:
5.05%, 6/1/2007......................................................... 270,000 265,504
5.15%, 6/1/2008......................................................... 270,000 265,337
5.25%, 6/1/2009......................................................... 245,000 241,090
Guilford:
5.25%, 1/15/2004........................................................ 300,000 305,889
5.40%, 1/15/2005........................................................ 325,000 333,154
5.50%, 1/15/2006........................................................ 325,000 333,122
Refunding:
5.40%, 10/15/2001..................................................... 1,215,000 1,257,987
5.50%, 10/15/2002..................................................... 1,000,000 1,040,300
Hamden:
5.25%, 10/1/2001........................................................ 445,000 458,096
5.30%, 10/1/2002........................................................ 440,000 453,552
5.40%, 10/1/2003........................................................ 425,000 439,888
Hartford 5.30%, 10/1/2008 (Insured; FGIC)................................... 1,000,000 1,001,570
Meriden 5.50%, 11/15/2001 (Insured; MBIA)................................... 1,300,000 1,371,305
New Britain:
5.375%, 3/1/2003 (Insured; MBIA)........................................ 750,000 774,600
5.50%, 3/1/2004 (Insured; MBIA)......................................... 1,000,000 1,038,480
New Canaan:
5.25%, 2/1/2009......................................................... 550,000 550,159
5.30%, 2/1/2010......................................................... 650,000 649,890
New Fairfield 4.80%, 3/15/2003 (Insured; MBIA).............................. 550,000 552,261
New Haven:
5.25%, 8/1/2006 (Insured; FGIC)......................................... 1,500,000 1,494,195
6.50%, 12/1/2002........................................................ 1,410,000 1,481,290
6.75%, 12/1/2005........................................................ 845,000 896,275
Refunding, 5%, 8/1/2008 (Insured; FGIC)................................. 2,185,000 2,106,362
New London:
5.10%, 10/1/2002 (Insured; MBIA)........................................ 300,000 306,450
5.20%, 10/1/2003 (Insured; MBIA)........................................ 575,000 589,059
New Milford:
5.20%, 8/1/2003......................................................... 550,000 562,815
5.40%, 8/1/2006......................................................... 380,000 389,443
5.50%, 8/1/2007......................................................... 425,000 435,251
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
----------- ----------
CONNECTICUT (CONTINUED)
Norwalk Maritime Center Authority, Revenue, Refunding (Maritime Center Project):
5.40%, 2/1/2002......................................................... $ 635,000 $ 654,964
5.50%, 2/1/2003......................................................... 670,000 694,388
Norwich 5.75%, 9/15/2005.................................................... 875,000 923,519
Redding:
6.50%, 4/15/2007........................................................ 200,000 222,868
6.55%, 4/15/2008........................................................ 200,000 223,482
6.60%, 4/15/2009........................................................ 200,000 223,888
South Central Connecticut Regional Water Authority, Water Systems Revenue:
5.50%, 8/1/2003 (Insured; FGIC)......................................... 2,000,000 2,083,580
5.25%, 8/1/2011 (Insured; FGIC)......................................... 890,000 869,770
Southington:
5.40%, 9/15/2005 (Insured; MBIA)........................................ 455,000 470,493
5.50%, 9/15/2006 (Insured; MBIA)........................................ 455,000 471,762
5.60%, 9/15/2007 (Insured; MBIA)........................................ 455,000 470,607
Stamford:
6.625%, 3/15/2004....................................................... 2,750,000 3,065,095
7.75%, 1/15/2005........................................................ 1,650,000 1,965,233
Stratford:
4.60%, 11/1/2004 (Insured; FGIC)........................................ 2,500,000 2,441,025
5.625%, 11/1/2007 (Insured; FGIC)....................................... 2,490,000 2,560,666
University of Connecticut 4.75%, 2/1/2008 (Insured; FGIC)................... 3,000,000 2,829,990
Vernon:
5.30%, 9/15/2004 (Insured; MBIA)........................................ 360,000 372,384
5.40%, 9/15/2005 (Insured; MBIA)........................................ 360,000 373,579
5.50%, 9/15/2006 (Insured; MBIA)........................................ 360,000 373,518
Wallingford:
5.20%, 6/15/2001........................................................ 400,000 410,796
5.30%, 6/15/2002........................................................ 400,000 412,368
5.40%, 6/15/2003........................................................ 400,000 414,176
4.80%, 6/15/2009........................................................ 1,385,000 1,297,911
Refunding 5.30%, 6/1/2004............................................... 500,000 513,425
Waterbury:
4.90%, 4/15/2002 (Insured: FGIC)........................................ 1,650,000 1,659,108
5%, 4/15/2003 (Insured: FGIC)........................................... 2,060,000 2,073,081
West Haven 6%, 9/1/2009..................................................... 480,000 502,742
Westport:
5.10%, 6/15/2003........................................................ 500,000 512,080
5.20%, 6/15/2004........................................................ 500,000 513,535
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
----------- ----------
U.S. RELATED-10.9%
Commonwealth of Puerto Rico, 5.30% 7/1/2004 (Insured; MBIA)................. $ 1,000,000 $ 1,032,950
Puerto Rico Electric and Power Authority, Power Revenue, Refunding
6.125%, 7/1/2009........................................................ 4,000,000 4,189,160
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................ 1,800,000 1,853,262
Virgin Islands, Subordinate Tax (Insurance Claims Fund Program-
General Obligation Matching Fund) 5.65%, 10/1/2003...................... 3,345,000 3,434,378
Virgin Islands Public Finance Authority,
Revenue, Refunding Matching Fund Loan Notes:
6.90%, 10/1/2001...................................................... 2,000,000 2,133,600
7%, 10/1/2002......................................................... 750,000 806,063
Virgin Islands Water and Power Authority, Water Systems Revenue
7.20%, 1/1/2002......................................................... 400,000 416,376
-------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $125,346,160)..................................................... $127,611,197
============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance MBIA Municipal Bond Investors Assurance
Corporation Insurance Corporation
FGIC Financial Guaranty Insurance Company
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
FITCH (A) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ---------- ---------- ------------------ --------------------
<S> <C> <S> <C>
AAA Aaa AAA 48.0%
AA Aa AA 27.2
A A A 12.4
BBB Baa BBB 7.1
Not Rated(b) Not Rated(b) Not Rated(b) 5.3
---------
100.0%
=========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Fitch currently provides creditwothiness information for a limited
number of investments.
(b) Securities which while not rated by Fitch, Moody's and Standard &
Poor's, have been determined by the Manager to be of comparable quality
to those rated securities in which the Fund may invest.
(c) At September 30, 1996, the Fund had $53,634,856 (41.4% 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, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $125,346,160)-see statement..................................... $127,611,197
Cash.................................................................... 226,699
Interest receivable..................................................... 1,979,026
Prepaid expenses........................................................ 6,702
-------------
129,823,624
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $69,063
Accrued expenses........................................................ 57,600 126,663
---------- -------------
NET ASSETS.................................................................. $129,696,961
=============
REPRESENTED BY:
Paid-in capital......................................................... $129,765,963
Accumulated net realized (loss) on investments.......................... (2,334,039)
Accumulated net unrealized appreciation on investments-Note 3........... 2,265,037
------------
NET ASSETS at value applicable to 9,716,849 shares outstanding (unlimited
number of $.001 par value shares of Beneficial Interest authorized)..... $129,696,961
============
NET ASSET VALUE, offering and redemption price per share
($129,696,961 / 9,716,849 shares)....................................... $13.35
=======
See independent accountants' review report and notes to financial statements.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $3,392,600
EXPENSES:
Management fee-Note 2(a).............................................. $ 392,836
Shareholder servicing costs-Note 2(b)................................. 97,135
Trustees' fees and expenses-Note 2(c)................................. 18,068
Professional fees..................................................... 15,483
Custodian fees........................................................ 7,172
Prospectus and shareholders' reports.................................. 4,044
Registration fees..................................................... 1,077
Miscellaneous......................................................... 12,254
-------------
TOTAL EXPENSES.................................................. 548,069
Less-reduction in management fee due to undertaking-Note 2(a)......... 34,651
-------------
NET EXPENSES.................................................... 513,418
-------------
INVESTMENT INCOME-NET........................................... 2,879,182
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS-Note 3:
Net realized gain on investments........................................ $ 128,250
Net unrealized (depreciation) on investments............................ (201,629)
-------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (73,379)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,805,803
============
See independent accountants' review report and notes to financial statements.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MARCH 31, SEPTEMBER 30, 1996
1996 (UNAUDITED)
--------------- -------------------
OPERATIONS:
Investment income-net.............................................. $ 5,924,268 $ 2,879,182
Net realized gain (loss) on investments............................ (137,287) 128,250
Net unrealized appreciation (depreciation) on investments for the period 3,330,261 (201,629)
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............. 9,117,242 2,805,803
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net.............................................. (5,893,258) (2,910,192)
------------- -------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold...................................... 33,967,263 12,630,754
Dividends reinvested............................................... 4,556,107 2,238,960
Cost of shares redeemed............................................ (39,318,248) (19,178,224)
------------- -------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS... (794,878) (4,308,510)
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS...................... 2,429,106 (4,412,899)
NET ASSETS:
Beginning of period................................................ 131,680,754 134,109,860
------------- -------------
End of period (including undistributed investment income-net;
$31,010 on March 31, 1996)....................................... $134,109,860 $129,696,961
============= =============
SHARES SHARES
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold........................................................ 2,530,462 951,589
Shares issued for dividends reinvested............................. 339,658 168,497
Shares redeemed.................................................... (2,933,585) (1,445,788)
----------- -----------
NET (DECREASE) IN SHARES OUTSTANDING............................. (63,465) (325,702)
=========== ===========
</TABLE>
See independent accountants' review report and 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 period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED MARCH 31, SEPTEMBER 30, 1996
------------------------------------------- ----------------------
PER SHARE DATA: 1993(1) 1994 1995 1996 (UNAUDITED)
--------- -------- -------- --------- ----------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $12.50 $13.18 $12.98 $13.03 $13.35
--------- -------- -------- --------- --------------
INVESTMENT OPERATIONS:
Investment income-net................. .58 .69 .65 .60 .29
Net realized and unrealized gain (loss)
on investments...................... .68 (.19) .05 .31 .01
--------- -------- -------- --------- --------------
TOTAL FROM INVESTMENT OPERATIONS.... 1.26 .50 .70 .91 .30
--------- -------- -------- --------- --------------
DISTRIBUTIONS:
Dividends from investment income-net.. (.58) (.69) (.65) (.59) (.30)
Dividends from net realized gain
on investments...................... - (.01) - - -
--------- -------- -------- --------- --------------
TOTAL DISTRIBUTIONS................. (.58) (.70) (.65) (.59) (.30)
--------- -------- -------- --------- --------------
Net asset value, end of period........ $13.18 $12.98 $13.03 $13.35 $13.35
========= ======== ======== ========= ==============
TOTAL INVESTMENT RETURN................... 12.33%(2) 3.64% 5.60% 7.09% 4.49%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - .01% .34% .72% .78%(2)
Ratio of net investment income to average
net assets.......................... 5.21%(2) 5.07% 5.08% 4.46% 4.40%(2)
Decrease reflected in above expense ratios due
to undertakings by the Manager...... 1.18%(2) .84% .50% .13% .05%(2)
Portfolio Turnover Rate............... 37.94%(3) 11.47% 31.66% 19.91% 20.19%(3)
Net Assets, end of period (000's Omitted) $75,597 $140,804 $131,681 $134,110 $129,697
(1) From May 27, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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. acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: 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 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.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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.
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 that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed the expense limitation of any state having jurisdiction over
the Fund, the Fund may deduct from payments to be made to the Manager, or the
Manager will bear the amount of such excess to the extent required by state
law. The Manager has undertaken from April 1, 1996 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 Funds' average daily net assets. The reduction in management
fee, pursuant to the undertaking, amounted to $34,651 during the six months
ended September 30, 1996.
The undertaking may be extended, modified or terminated by the Manager,
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, 1996, the Fund was charged an
aggregate of $51,597 pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $32,623 during the six months ended September 30,
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.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended September 30,
1996 amounted to $28,557,438 and $25,417,873, respectively.
At September 30, 1996, accumulated net unrealized appreciation on
investments was $2,265,037, consisting of $2,723,142 gross unrealized
appreciation and $458,105 gross unrealized depreciation.
At September 30, 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
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, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended September 30, 1996. 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, 1996 and financial highlights for each of the four years in the
period ended March 31, 1996 and in our report dated May 3, 1996, we expressed
an unqualified opinion on such statement of changes in net assets and
financial highlights.
(Ernst & Young, LLP signature)
New York, New York
November 5, 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
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 914SA969
(Dreyfus Logo)
