DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus Connecticut
Intermediate Municipal Bond Fund for the six-month period ended September 30,
1997. Your Fund produced a total return, including share price changes and
dividend income generated, of 5.51%,* and an annualized tax-free distribution
rate per share of 4.33%.**
THE ECONOMY
Virtually ideal economic conditions prevailed over the reporting period.
Robust growth in the first half of 1997, the lowest unemployment rate since
the early 1970s and measures of inflation at 30-year lows combined to spur
consumer confidence to record high ground. Businesses were similarly
optimistic: government reports showed that business investment in new
equipment during the reporting period was at its fastest pace in 14 years.
The question is, how long can this favorable economic scenario continue
before inflation rekindles or, more to the point, before the Federal Reserve
Board (the "Fed") embarks on a policy of monetary restraint to dampen
possible future inflationary excess? Traditionally, the Fed has acted to
contain inflation long before it could spread throughout the economy, and Fed
Chairman Alan Greenspan is a staunch inflation-fighter. Yet there are few
traditional signs of potential inflationary excess to battle against. The
upward creep of factory operating rates in response to surging industrial
production is one, the tight labor market is another. With the unemployment
rate so low, there is concern that employers will eventually raise wages to
attract workers, resulting in higher prices as increased labor costs are
passed along to consumers. So far, there has been a remarkable absence of
wage and price pressures.
There are few signs that broader measures of inflation are accelerating.
The economy grew at a 4.1% rate over the first six months of this year, a
pace that in other times would have resulted in rumblings of inflationary
pressures. Until its modest rise in September, the Producer Price Index had
an unprecedented series of seven straight monthly declines. The Consumer
Price Index rose at a 1.6% annual rate for the first eight months of the
year, a rate less than half the 3.3% rise for the comparable period in 1996.
Because of the lack of inflation, the Fed has been willing to tolerate
strong economic growth without tightening monetary policy. The Federal Open
Market Committee (FOMC), the policy-making arm of the Fed, has raised
interest rates just once in more than two years, a period roughly coinciding
with the surge of growth in the economy. The last increase in short-term
interest rates came on March 25, 1997 when the FOMC increased the Federal
Funds rate by a modest one-quarter of a percentage point to 5.50%. (The
Federal Funds rate is the rate of interest that banks charge one another for
overnight loans.)
In addition, the Fed expected some slowdown throughout the 18-month
economic resurgence, yet demand remained strong throughout. However, the
latest revision of the second-quarter economic growth rate showed a
considerable buildup in business inventories. A rise in inventories could
trigger a subsequent slowdown in the economy if companies cut production in
order to work off unsold backlogs. Nevertheless, it is possible that the
inherent momentum in the economy combined with more vigorous consumer spending
in the third quarter (retail sales showed renewed strength over the summer)
could absorb these inventories without a reduction in output. We continue to
remain alert for future changes of monetary policy by the Fed, particularly
the possibility of a tightening if economic growth continues strong
throughout the rest of this year.
MARKET ENVIRONMENT
The municipal market has benefited from the same improving trends as did
the broader fixed-income markets. This has occurred despite a 25 basis-point
increase in the Federal Funds rate in March and recent commentary by Fed
Chairman Alan Greenspan concerning another potential move. Yields on bonds in
the maturity range that pertains to your Fund are currently lower than yields
on bonds previously purchased and held in the Fund's present portfolio. The
intermediate sector of the municipal market continues to show strength and is
now at cyclically rich levels compared to U.S. Treasury securities for the
year. Recent issuance of new municipal bond debt ha increased; however, supply
in the intermediate maturity range has been less than that for longer maturity
ranges. It appears that the intermediate sector is less vulnerable to a
technical correction from either oversupply or excessiv demand. This
characteristic of performance has helped support the bond prices in your Fund,
and furthermore provides some apparent downside protection.
PORTFOLIO OVERVIEW
Many current new issue offerings are not as structurally attractive as
the majority of the positions held in the portfolio. Also, very few new
issues came to market in the recent quarter. Fortunately, we have not been
under pressure to invest during this recent low interest-rate environment.
The Fund is largely invested, and portfolio holdings are seasoned, creating
an investment vehicle aimed at producing high current income. This
facilitates lower volatility, a potential asset if Fed action is taken. In
the coming months, as securities move closer to maturity, we plan to replace
those short-lived holdings with more advantageous positions in order to
maintain the integrity of the portfolio.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal
Portfolio Management
The Dreyfus Corporation
October 20, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid. Income is subject to state and local taxes for non-Connecticut
residents.
** 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. Some income may be subject to
the Federal Alternative Minimum Tax (AMT) for certain shareholders.
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments-97.3% Amount Value
------- -------
Connecticut-86.2%
<S> <C> <C>
Bridgeport, Refunding 6%, 9/1/2006 (Insured; AMBAC)......................... $ 1,750,000 $ 1,930,215
Cheshire 5.10%, 8/15/2006................................................... 530,000 551,062
Columbia:
5.20%, 6/15/2002.......................................................... 265,000 276,427
5.30%, 6/15/2003.......................................................... 265,000 279,093
5.40%, 6/15/2004.......................................................... 265,000 281,157
State of Connecticut:
5.80%, 11/15/2001......................................................... 1,000,000 1,060,740
6.10%, 3/15/2002.......................................................... 2,000,000 2,146,280
5.80%, 11/15/2002......................................................... 1,500,000 1,603,845
5.125%, 8/15/2011......................................................... 1,000,000 1,007,390
Airport Revenue Refunding (Bradley International Airport)
7.35%, 10/1/2001 (Insured; FGIC)........................................ 1,000,000 1,112,730
Clean Water Fund Revenue:
5.40%, 4/1/2003......................................................... 1,000,000 1,050,890
5.40%, 6/1/2007......................................................... 1,805,000 1,905,845
Refunding 5.125%, 7/1/2007 (Insured; MBIA).............................. 2,000,000 2,073,680
Special Assessment Second Injury Fund Revenue
5.20%, 1/1/2010 (Insured; AMBAC)........................................ 3,000,000 3,059,490
Special Tax Obligation Revenue (Transportation Infrastructure):
5.60%, 9/1/2002......................................................... 3,000,000 3,172,530
Refunding:
5.25%, 9/1/2007....................................................... 1,115,000 1,172,166
5.25%, 9/1/2007 (Insured; MBIA)....................................... 1,360,000 1,426,409
Connecticut Health and Educational Facilities Authority, Revenue:
(Connecticut State University System):
5%, 11/1/2007 (Insured; MBIA)........................................... 1,820,000 1,873,708
5.125%, 11/1/2010 (Insured; MBIA)....................................... 1,145,000 1,158,889
(Greenwich Hospital) 5.75%, 7/1/2006 (Insured; MBIA)...................... 1,000,000 1,083,510
(Kent School) 5.10%, 7/1/2007 (Insured; MBIA)............................. 500,000 519,035
Refunding (Yale New Haven Hospital) 5.50%, 7/1/2010....................... 1,810,000 1,889,006
(Stamford Hospital) 5.20%, 7/1/2007 (Insured; MBIA)....................... 2,210,000 2,291,991
(University of Hartford):
6.25%, 7/1/2002......................................................... 700,000 728,140
Refunding 6.20%, 7/1/2001............................................... 750,000 775,718
(University of New Haven) 6%, 7/1/2006.................................... 1,000,000 1,037,780
Connecticut Higher Education Supplemental Loan Authority, Revenue
(Family Education Loan Program):
5.70%, 11/15/2004....................................................... 1,390,000 1,432,103
5.80%, 11/15/2005....................................................... 1,895,000 1,963,087
5.90%, 11/15/2006....................................................... 1,990,000 2,068,068
5.50%, 11/15/2008....................................................... 1,675,000 1,726,942
5.60%, 11/15/2009....................................................... 1,775,000 1,832,474
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------- -------
Connecticut (continued)
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program):
<S> <C> <C>
6.90%, 11/15/1998....................................................... $ 1,520,000 $ 1,547,117
5.95%, 11/15/2002....................................................... 2,000,000 2,092,280
5.90%, 5/15/2006........................................................ 1,000,000 1,044,910
5.65%, 11/15/2007....................................................... 1,000,000 1,034,930
Connecticut Municipal Electric Energy Cooperative, Power Supply
System Revenue, Refunding:
5%, 1/1/2008 (Insured; MBIA)............................................ 1,500,000 1,536,165
5%, 1/1/2010 (Insured; MBIA)............................................ 1,820,000 1,824,204
Connecticut Regional School District Number 5:
5.25%, 1/15/2004 (Insured; MBIA).......................................... 400,000 419,152
5.40%, 1/15/2005 (Insured; MBIA).......................................... 400,000 424,180
5.50%, 1/15/2006 (Insured; MBIA).......................................... 400,000 425,368
Danbury:
5.10%, 8/15/2003.......................................................... 815,000 849,784
5.25%, 8/15/2004.......................................................... 815,000 857,152
Derby:
5.40%, 5/15/2004 (Insured; AMBAC)......................................... 420,000 444,629
5.50%, 5/15/2005 (Insured; AMBAC)......................................... 620,000 662,910
Eastern Connecticut Resources Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project) 5.25%, 1/1/2006............................. 820,000 830,184
East Hampton:
5.25%, 7/15/2004 (Insured; FGIC).......................................... 300,000 315,351
5.40%, 7/15/2005 (Insured; FGIC).......................................... 305,000 324,502
5.50%, 7/15/2006 (Insured; FGIC).......................................... 305,000 327,610
East Lyme:
5.20%, 8/1/2003........................................................... 425,000 443,861
5.60%, 8/1/2009........................................................... 415,000 436,040
Easton:
5.05%, 6/1/2007........................................................... 270,000 277,617
5.15%, 6/1/2008........................................................... 270,000 277,198
5.25%, 6/1/2009........................................................... 245,000 251,154
Guilford:
5.25%, 1/15/2004.......................................................... 300,000 313,191
5.40%, 1/15/2005.......................................................... 325,000 342,781
5.50%, 1/15/2006.......................................................... 325,000 343,746
Refunding:
5.40%, 10/15/2001....................................................... 1,215,000 1,269,116
5.50%, 10/15/2002....................................................... 1,000,000 1,054,320
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------- -------
Connecticut (continued)
Hamden:
<S> <C> <C>
5.25%, 10/1/2001.......................................................... $ 445,000 $ 462,217
5.30%, 10/1/2002.......................................................... 440,000 459,818
5.40%, 10/1/2003.......................................................... 425,000 448,354
Hartford 5.30%, 10/1/2008 (Insured; FGIC)................................... 1,000,000 1,047,450
Meriden 5.50%, 11/15/2001 (Insured; MBIA)................................... 1,300,000 1,363,830
Middletown 5%, 4/15/2008.................................................... 1,760,000 1,803,454
New Britain:
5.375%, 3/1/2003 (Insured; MBIA).......................................... 750,000 785,992
5.50%, 3/1/2004 (Insured; MBIA)........................................... 1,000,000 1,057,460
New Canaan:
5.25%, 2/1/2009........................................................... 550,000 571,015
5.30%, 2/1/2010........................................................... 650,000 672,067
New Fairfield 4.80%, 3/15/2003 (Insured; MBIA).............................. 550,000 562,436
New Haven:
6.50%, 12/1/2002.......................................................... 350,000 385,921
6.50%, 12/1/2002.......................................................... 1,060,000 1,147,588
6.75%, 12/1/2005.......................................................... 845,000 952,915
Refunding:
5.25%, 8/1/2006 (Insured; FGIC)......................................... 1,500,000 1,563,405
5%, 8/1/2008 (Insured; FGIC)............................................ 2,185,000 2,211,963
New London:
5.10%, 10/1/2002 (Insured; MBIA).......................................... 300,000 310,974
5.20%, 10/1/2003 (Insured; MBIA).......................................... 575,000 600,887
New Milford:
5.20%, 8/1/2003........................................................... 550,000 574,123
5.40%, 8/1/2006........................................................... 380,000 403,545
5.50%, 8/1/2007........................................................... 425,000 455,311
North Haven 5%, 9/1/2013.................................................... 850,000 845,350
Norwalk Maritime Center Authority, Revenue Refunding (Maritime Center
Project):
5.40%, 2/1/2002........................................................... 635,000 662,578
5.50%, 2/1/2003........................................................... 670,000 706,301
Norwich 5.75%, 9/15/2005.................................................... 875,000 948,071
Redding:
6.55%, 4/15/2008.......................................................... 200,000 231,740
6.60%, 4/15/2009.......................................................... 200,000 233,550
South Central Connecticut Regional Water Authority, Water Systems Revenue:
5.50%, 8/1/2003 (Insured; FGIC)........................................... 2,000,000 2,119,420
5.25%, 8/1/2011 (Insured; FGIC)........................................... 890,000 907,631
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------- -------
Connecticut (continued)
Southington:
<S> <C> <C>
5.40%, 9/15/2005 (Insured; MBIA).......................................... $ 455,000 $ 484,634
5.50%, 9/15/2006 (Insured; MBIA).......................................... 455,000 489,275
5.60%, 9/15/2007 (Insured; MBIA).......................................... 455,000 490,431
Stamford:
6.625%, 3/15/2004......................................................... 2,750,000 3,100,543
7.75%, 1/15/2005.......................................................... 1,650,000 1,988,349
Stratford:
5.625%, 11/1/2007 (Insured; FGIC)......................................... 2,490,000 2,644,280
University of Connecticut 4.75%, 2/1/2008 (Insured; FGIC)................... 3,000,000 3,009,540
Vernon:
5.30%, 9/15/2004 (Insured; MBIA).......................................... 360,000 380,560
5.40%, 9/15/2005 (Insured; MBIA).......................................... 360,000 384,192
5.50%, 9/15/2006 (Insured; MBIA).......................................... 360,000 385,322
Wallingford:
5.20%, 6/15/2001.......................................................... 400,000 413,996
5.30%, 6/15/2002.......................................................... 400,000 417,380
5.40%, 6/15/2003.......................................................... 400,000 421,416
4.80%, 6/15/2009.......................................................... 1,385,000 1,381,953
Refunding 5.30%, 6/1/2004................................................. 500,000 525,145
Waterbury, Refunding:
4.90%, 4/15/2002 (Insured; FGIC).......................................... 1,650,000 1,685,640
5%, 4/15/2003 (Insured; FGIC)............................................. 2,060,000 2,115,064
Westport:
5.10%, 6/15/2003.......................................................... 500,000 521,565
5.20%, 6/15/2004.......................................................... 500,000 524,760
U.S. Related-11.1%
Commonwealth of Puerto Rico, Refunding, 5.30%, 7/1/2004 (Insured; MBIA)..... 1,000,000 1,056,200
Puerto Rico Electric and Power Authority, Power Revenue, Refunding,
6.125%, 7/1/2009 (Insured; MBIA).......................................... 4,000,000 4,525,360
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................ 1,800,000 1,885,698
Virgin Islands, Subordinate Tax (Insurance Claims Fund Program
General Obligation Matching Fund) 5.65%, 10/1/2003........................ 3,245,000 3,394,270
Virgin Islands Public Finance Authority,
Revenue Refunding Matching Fund Loan Notes:
6.90%, 10/1/2001........................................................ 2,000,000 2,160,360
7%, 10/1/2002........................................................... 750,000 823,313
Virgin Islands Water and Power Authority, Water Systems Revenue
7.20%, 1/1/2002........................................................... 300,000 315,039
-------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $118,845,814)....................................................... $124,479,503
=======
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
Principal
Short-Term Municipal Investments-2.7% Amount Value
------- -------
Connecticut-.8%
Connecticut Development Authority, PCR, Refunding,
VRDN (Connecticut Light and Power Company Project)
<S> <C> <C>
4% (LOC; Union Bank of Switzerland) (a,b)................................. $ 1,000,000 $ 1,000,000
U.S Related-1.9%
Puerto Rico Electric Power Authority, Power Revenue, 3.37% (Insured; FSA) (c) 1,700,000 1,700,000
Puerto Rico Government Development Bank, Refunding, VRDN
3.70% (LOC; Credit Swisse) (a,b).......................................... 700,000 700,000
-------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $3,400,000)......................................................... $ 3,400,000
=======
TOTAL INVESTMENTS-100.0%
(cost $122,245,814)....................................................... $127,879,503
=======
Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FSA Financial Security Assurance PCR Pollution Control Revenue
LOC Letter of Credit VRDN Variable Rate Demand Notes
Summary of Combined Ratings
Fitch (d) or Moody's or Standard & Poor's Percentage of Value
- -------- -------- ----------------- ------------------
AAA Aaa AAA 55.2%
AA Aa AA 25.2
A A A 10.0
BBB Baa BBB 3.9
Not Rated(e) Not Rated(e) Not Rated(e) 5.7
----
100.0%
====
Notes to Statement of Investments:
(a) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(b) Secured by letter of credit.
(c) Inverse floater security-the interest rate is subject to change
periodically.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) 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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1997 (UNAUDITED)
Cost Value
-------- --------
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $122,245,814 $127,879,503
Cash....................................... 323,416
Interest receivable........................ 1,854,227
Prepaid expenses........................... 8,178
--------
130,065,324
--------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 60,004
Accrued expenses........................... 58,011
--------
118,015
--------
NET ASSETS.................................................................. $129,947,309
========
REPRESENTED BY: Paid-in capital............................ $126,177,235
Accumulated net realized gain (loss) on investments (1,863,615)
Accumulated gross unrealized appreciation
on investments.............................. 5,633,689
--------
NET ASSETS.................................................................. $129,947,309
========
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest
authorized) ........................................... 9,447,248
NET ASSET VALUE, offering and redemption price per share-Note 3(d).......... $13.76
========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income............................ $3,319,985
EXPENSES: Management fee-Note 3(a)................... $ 387,206
Shareholder servicing costs-Note 3(b)...... 71,995
Professional fees.......................... 16,541
Trustees' fees and expenses-Note 3(c)...... 15,039
Registration fees.......................... 7,892
Custodian fees............................. 6,826
Prospectus and shareholders' reports....... 5,346
Loan commitment fees-Note 2................ 556
Miscellaneous.............................. 9,882
------
Total Expenses....................... 521,283
Less-reduction in management fee due to
undertaking-Note 3 (a)................. (35,097)
------
Net Expenses......................... 486,186
------
INVESTMENT INCOME-NET....................................................... 2,833,799
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 142,431
Net unrealized appreciation (depreciation) on investments 3,906,609
------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 4,049,040
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $6,882,839
======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1997 Year Ended
(Unaudited) March 31, 1997
---------- --------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 2,833,799 $ 5,765,457
Net realized gain (loss) on investments............................. 142,431 456,243
Net unrealized appreciation (depreciation) on investments........... 3,906,609 (739,586)
------- -------
Net Increase (Decrease) in Net Assets Resulting from Operations... 6,882,839 5,482,114
------- -------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................... (2,833,799) (5,796,467)
------- -------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold....................................... 11,136,213 26,772,228
Dividends reinvested................................................ 2,158,425 4,453,723
Cost of shares redeemed............................................. (16,860,266) (35,557,561)
------- -------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (3,565,628) (4,331,610)
------- -------
Total Increase (Decrease) in Net Assets......................... 483,412 (4,645,963)
NET ASSETS:
Beginning of Period................................................. 129,463,897 134,109,860
------- -------
End of Period....................................................... $ 129,947,309 $ 129,463,897
======= =======
Shares Shares
------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 819,843 2,000,926
Shares issued for dividends reinvested.............................. 158,646 332,728
Shares redeemed..................................................... (1,245,897) (2,661,549)
------- -------
Net Increase (Decrease) in Shares Outstanding..................... (267,408) (327,895)
======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Six Months Ended
September 30, 1997 Year Ended March 31,
----------------------------------------------------
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993(1)
------------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $13.33 $13.35 $13.03 $12.98 $13.18 $12.50
---- ---- ---- ---- ---- ----
Investment Operations:
Investment income-net................. .30 .59 .60 .65 .69 .58
Net realized and unrealized gain (loss)
on investments...................... .43 (.01) .31 .05 (.19) .68
---- ---- ---- ---- ---- ----
Total from Investment Operations...... .73 .58 .91 .70 .50 1.26
---- ---- ---- ---- ---- ----
Distributions:
Dividends from investment income-net.. (.30) (.60) (.59) (.65) (.69) (.58)
Dividends from net realized gain on investments - - - - (.01) -
---- ---- ---- ---- ---- ----
Total Distributions................... (.30) (.60) (.59) (.65) (.70) (.58)
---- ---- ---- ---- ---- ----
Net asset value, end of period........ $13.76 $13.33 $13.35 $13.03 $12.98 $13.18
==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN................... 10.99%(2) 4.38% 7.09% 5.60% 3.64% 12.33%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .75%(2) .78% .72% .34% .01% -
Ratio of net investment income
to average net assets............... 4.39%(2) 4.42% 4.46% 5.08% 5.07% 5.21%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .05%(2) .06% .13% .50% .84% 1.18%(2)
Portfolio Turnover Rate............... 3.73%(3) 29.56% 19.91% 31.66% 11.47% 37.94%(3)
Net Assets, end of period (000's Omitted) $129,947 $129,464 $134,110 $131,681 $140,804 $75,597
(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 (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. is 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: Investments in securities (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.
(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.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Fund has an unused capital loss carryover of approximately $1,998,000
available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
March 31, 1997. If not applied, $155,000 of the carryover expires in fiscal
2003 and $1,843,000 expires in fiscal 2004.
NOTE 2-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended
September 30, 1997, the Fund did not borrow under the Facility.
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to a management 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 Manager has undertaken
from April 1, 1997 through March 31, 1998 to reduce the management fee paid
by the Fund, to the extent that the Fund's aggregate annual expenses,
exclusive of taxes, brokerage, interest on borrowings, commitment fees and
extraordinary expenses, 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 $35,097 during the period ended
September 30, 1997.
(b) Under 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 period ended September 30, 1997, the Fund was charged $35,000
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. During the
period ended September 30, 1997, the Fund was charged $29,939 pursuant to the
transfer agency agreement.
(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.
(d) A 1% redemption fee is charged on certain redemptions of Fund shares
(including redemptions through use of the Fund Exchanges service) where the
shares being redeemed were issued subsequent to a specified effective date
and the redemption or exchange occurs less than fifteen days following the
date of issuance. During the period ended September 30, 1997, the redemption
fees amounted to $59.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended September 30, 1997
amounted to $4,630,203 and $8,808,388, respectively.
At September 30, 1997, 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).
Registration Mark
[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. 914SA979
Registration Mark
[Dreyfus logo]
Connecticut
Intermediate
Municipal Bond
Fund
Semi-Annual
Report
September 30, 1997
