DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
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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,
1998. Your Fund produced a total return, including share price changes and
dividend income generated, of 4.11%,* and an annualized tax-free distribution
rate per share of 4.12%.**
The Economy
The risk of global recession loomed large by the end of the reporting period.
Since last summer, the international economic crisis has spread from Asia and
Russia into Latin America and its effects are evident in the U.S., as witnessed
by early signs of a slowing in our domestic economy. Second-quarter gross
domestic product grew at an annual rate of 1.8%, well below the 5.5% rate in the
first quarter, while the trade deficit has continued to widen, affected by
weakening foreign demand and low-priced imports. These developments have
heightened a sense of global economic interdependence and have resulted in a
shift in emphasis by the Federal Reserve Board whereby fighting inflation has
taken a subordinate role to that of maintaining stable U.S. economic growth. As
Fed Chairman Alan Greenspan noted in early September: "It is just not credible
that the United States can remain an oasis of prosperity unaffected by a world
that is experiencing greatly increased stress." On September 29, the Federal
Open Market Committee cut interest rates for the first time since January 1996.
That, and a second quarter-point reduction taking the Federal Funds target rate
to 5% was designed to cushion the adverse effects of the overseas economic
crisis on the domestic economy. (The Federal Funds rate is the interest rate
that banks charge each other for overnight loans.)
So far, shock waves from the overseas economic turmoil have been dampened by
the continued propensity of U.S. consumers to spend. In the first half of the
year, their spending outpaced earned income, an unsustainable phenomenon, yet a
telling indicator of the level of consumer optimism. The reasons for such
optimism are no surprise. Inflation remains tame, running at an annual rate
comfortably below 2%. After-tax income is growing: by the end of the reporting
period, wages had increased year-to-year at a 4% annual rate resulting in strong
gains in real income for workers. Finally, and of great economic and
psychological importance to consumers, jobs are plentiful; the unemployment rate
has been at or near 30-year lows throughout the reporting period and new jobs
have been created at a robust pace.
While the corporate sector wrestles with the economic implications of global
developments, consumers have powered the economy. The consumer sector comprises
two thirds of the activity in the $8-trillion U.S. economy and, with the
business sector slowing (corporate profits declined in the second quarter for
the first time in nearly a decade) , any significant pullback in household
spending could trigger a recession. Up to now, the spillover effect from
developments abroad has been largely confined to the manufacturing sector, whose
activity has contracted of late due to the falloff in export demand. Aside from
this "erosion at the edges" as Chairman Greenspan describes it, layoffs on a
broader scale -- a factor that could weaken consumer resolve to spend -- so far
have not occurred. It is clear that the Fed is concerned about the possibility
of worldwide recession. The October interest rate reduction was another step by
the Fed to mitigate the domestic effects of international financial turmoil, and
a gesture meant to serve notice to the world of the seriousness of its purpose.
The Market Enviornment
We believe that it is still too early to draw any conclusions regarding the
ultimate depth of the Asian crisis and its impact on the U.S. economy. Until a
clearer picture emerges from Asia, we believe investors will continue to find
fixed-income investments attractive. The still strong and expanding economy
would normally be a cause for concern to inflation watchers; however, it is
generally believed that the Fed will refrain from taking any interest rate
actions that could exacerbate the Asian situation. While the most recent
economic and employment data has been indicative of a strengthening economy,
inflation remains quiescent.
During the period, the municipal bond market has settled into a narrow,
well-defined trading range which makes it increasingly difficult to
advantageously sell municipal securities and reinvest the proceeds at will.
Domestic interest rates over a broad range of maturities have remained flat for
most of the period, with bond prices generally rising while interest rates
generally remain lower. There are, however, more global reasons for this
constraint -- primarily the Russian economic crisis, various problems of
emerging nations yet to be resolved, and substantive policies necessary to
restimulate the Japanese economy yet to take hold. Due to the unsettled nature
of these economies and their effects on world trade, it is likely that the U.S.
economy will slow from its current pace over the next several quarters.
Portfolio Focus
Since the outset of the six-month period which ended September 30, 1998, the
Dreyfus Connecticut Intermediate Municipal Bond Fund assumed a relatively
pragmatic approach with the portfolio. The Fund focused on extending its average
maturity gradually as the period began. By the end of the first fiscal quarter,
it was apparent that the municipal market's direction was unclear, and at times
was fraught with uncertainty. We felt that attempting to predict the timing of
the ebb and flow of these market changes would be difficult at best. As a
counterbalance, we focused our efforts on buying discount bonds and also
purchasing higher coupon municipal securities. These actions helped the Fund to
better weather the volatile market environment.
We will continue to manage the portfolio utilizing a conservative approach
with an eye toward identifying value in the Connecticut marketplace. The Fund is
currently well balanced across its coupon and maturity range and is well
positioned to weather the underlying crosscurrents. It is entirely possible that
the market may again see periods of volatility, although, at present, the bond
market is gaining positive momentum as a result of the equity market's woes and
declining interest rates. Additionally, the portfolio is benefiting from the
demand for Connecticut securities which are well sought-after by national funds,
as well as other Connecticut bond funds.
Our primary tasks, which will guide our portfolio management decisions, are to
earn a high level of current income to the extent it is consistent with the
preservation of capital while maintaining the Fund' s high credit quality.
Included in this report is a series of detailed statements outlining the
portfolio' s holdings and financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the
portfolio and the Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 16, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
Income may be subject to state and local income 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, adjusted for any capital gain
distributions. Some income may be subject to the Federal Alternative
Minimum Tax (AMT) for certain shareholders.
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--95.3% Amount Value
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<S> <C> <C>
Connecticut--84.5%
Ansonia, 5%, 10/15/2013 (Insured; FGIC). . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,015,000 $ 1,067,069
Bridgeport, Refunding 6%, 9/1/2006 (Insured; AMBAC). . . . . . . . . . . . . . . . . . . . 1,750,000 1,995,052
Chesire 5.10%, 8/15/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530,000 566,867
Columbia:
5.20%, 6/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265,000 279,252
5.30%, 6/15/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265,000 283,211
5.40%, 6/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265,000 284,332
State of Connecticut:
5.80%, 11/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,622,100
5.125%, 8/15/2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,055,050
Clean Water Fund Revenue:
5.40%, 4/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,070,560
5.40%, 6/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,805,000 1,969,941
5.125%, 7/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,144,040
Refunding 5.25%, 3/15/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,450,200
Special Assessment Second Injury Fund Revenue
5.20%, 1/1/2010 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,208,470
Special Tax Obligation Revenue (Transportation Infrastructure):
5.60%, 9/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,204,390
Refunding:
5.25%, 9/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,115,000 1,218,216
5.25%, 9/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . 1,360,000 1,490,179
Connecticut Clean Water Fund, Refunding 5.75%, 12/1/2013 . . . . . . . . . . . . . . . . . 1,000,000 1,097,210
Connecticut Health and Educational Facilities Authority, Revenue:
(Connecticut State University System):
5%, 11/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,820,000 1,961,050
5.125%, 11/1/2010 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 1,145,000 1,222,139
(Greenwich Hospital) 5.75%, 7/1/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . 1,000,000 1,120,910
(Kent School) 5.10%, 7/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . 500,000 537,140
Refunding (Yale New Haven Hospital) 5.50%, 7/1/2010 . . . . . . . . . . . . . . . . . . 1,810,000 1,994,873
(Stamford Hospital) 5.20%, 7/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . 2,210,000 2,371,153
(University of Hartford):
6.25%, 7/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000 742,056
Refunding 6.20%, 7/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 784,582
(University of New Haven) 6%, 7/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,065,180
Connecticut Higher Education Supplemental Loan Authority, Revenue
(Family Education Loan Program):
5.70%, 11/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,320,000 1,422,788
5.80%, 11/15/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,795,000 1,883,906
5.90%, 11/15/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,890,000 1,991,361
5.50%, 11/15/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,675,000 1,755,048
5.60%, 11/15/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,775,000 1,866,342
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ____________ _____________
Connecticut (continued)
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program):
6.90%, 11/15/1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,085,000 $ 1,087,474
5.90%, 5/15/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,073,690
5.65%, 11/15/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,065,570
5.50%, 11/15/2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,225,000 1,254,535
Connecticut Municipal Electric Energy Cooperative, Power Supply
System Revenue, Refunding:
5%, 1/1/2008 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,611,960
5%, 1/1/2010 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,570,000 1,661,060
Connecticut Regional School District Number 5:
5.25%, 1/15/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 428,036
5.40%, 1/15/2005 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 431,428
5.50%, 1/15/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 431,904
Danbury:
5.10%, 8/15/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815,000 865,995
5.25%, 8/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815,000 879,556
Derby:
5.40%, 5/15/2004 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 420,000 454,192
5.50%, 5/15/2005 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 620,000 679,483
Eastern Connecticut Resources Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project) 5.25%, 1/1/2006 . . . . . . . . . . . . . . . . . . . . . 820,000 858,597
East Hampton:
5.25%, 7/15/2004 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 322,809
5.40%, 7/15/2005 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,000 333,399
5.50%, 7/15/2006 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,000 335,021
East Lyme:
5.20%, 8/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425,000 452,876
5.60%, 8/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415,000 444,473
Easton:
5.05%, 6/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000 290,196
5.15%, 6/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000 290,409
5.25%, 6/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245,000 263,716
Guilford:
5.25%, 1/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 321,624
5.40%, 1/15/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325,000 351,072
5.50%, 1/15/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325,000 351,458
Refunding 5.50%, 10/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,067,950
Hamden:
5.25%, 10/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445,000 465,982
5.40%, 10/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425,000 457,219
Hartford 5.30%, 10/1/2008 (Insured; FGIC). . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,092,910
Meriden 5.50%, 11/15/2001 (Insured; MBIA). . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000 1,373,034
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
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Connecticut (continued)
Middletown 5%, 4/15/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,760,000 $ 1,894,816
New Britain:
5.375%, 3/1/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 799,028
5.50%, 3/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,081,760
New Canaan:
5.25%, 2/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550,000 592,400
5.30%, 2/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650,000 701,473
New Fairfield 4.80%, 3/15/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . 550,000 574,530
New Haven:
6.50%, 12/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,060,000 1,160,764
6.50%, 12/1/2002 (Escrowed to Maturity) . . . . . . . . . . . . . . . . . . . . . . . . 350,000 387,765
6.75%, 12/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845,000 957,377
Refunding:
5.25%, 8/1/2006 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,618,185
4.75%, 9/1/2007(Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,435,000 1,516,680
5%, 8/1/2008 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,185,000 2,310,332
New London:
5.10%, 10/1/2002 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 315,891
5.20%, 10/1/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 575,000 609,345
New Milford:
5.20%, 8/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550,000 585,821
5.40%, 8/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380,000 418,281
5.50%, 8/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425,000 473,543
North Haven 5%, 9/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850,000 888,182
Norwalk Maritime Center Authority, Revenue Refunding (Martime Center Project)
5.50%, 2/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 670,000 717,175
Norwich 5.75%, 9/15/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 875,000 976,474
Redding:
6.55%, 4/15/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 240,032
6.60%, 4/15/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 242,348
South Central Connecticut Regional Water Authority, Water Systems Revenue:
5.50%, 8/1/2003 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,157,520
5.25%, 8/1/2011 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 890,000 954,828
Southington:
5.40%, 9/15/2005 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 455,000 498,293
5.50%, 9/15/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 455,000 500,723
5.60%, 9/15/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 455,000 502,097
Stamford:
6.625%, 3/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,620,000 1,852,227
6.625%, 3/15/2004 (Escrowed to Maturity) . . . . . . . . . . . . . . . . . . . . . . . 1,130,000 1,285,104
7.75%, 1/15/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,650,000 2,013,413
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ____________ _____________
Connecticut (continued)
Stratford 5.625%, 11/1/2007 (Insured; FGIC). . . . . . . . . . . . . . . . . . . . . . . . $ 2,490,000 $ 2,687,830
University of Connecticut, College and University Revenue:
4.75%, 2/1/2008 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,167,730
5%, 6/1/2010 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,620,000 2,794,990
Vernon:
5.30%, 9/15/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 360,000 389,041
5.40%, 9/15/2005 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 360,000 391,280
5.50%, 9/15/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 360,000 391,766
Wallingford:
5.40%, 6/15/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 429,024
4.80%, 6/15/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,385,000 1,443,322
Refunding 5.30%, 6/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 538,830
Waterbury, Refunding:
4.90%, 4/15/2002 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,650,000 1,708,756
5%, 4/15/2003 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,060,000 2,155,625
Westport:
5.10%, 6/15/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 531,630
5.20%, 6/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 538,915
U.S. Related--10.8%
Commonwealth of Puerto Rico, Refunding, 5.30%, 7/1/2004 (Insured; MBIA). . . . . . . . . . 1,000,000 1,078,670
Puerto Rico Electric and Power Authority, Power Revenue, Refunding
6.125%, 7/1/2009 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,700,240
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002 . . . . . . . . . . . . . . . . . . . 1,800,000 1,906,722
Virgin Islands, Subordinate Tax (Insurance Claims Fund Program
General Obligation Matching Fund) 5.65%, 10/1/2003 . . . . . . . . . . . . . . . . . . 2,845,000 2,966,425
Virgin Islands Public Finance Authority,
Revenue Refunding Matching Fund Loan Notes:
6.90%, 10/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,185,020
5.50%, 10/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,615,995
Virgin Islands Water and Power Authority, Water Systems Revenue
7.20%, 1/1/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 313,848
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $121,630,668) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $130,484,361
_____________
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998 (UNAUDITED)
Principal
Short-Term Municipal Investments--3.3% Amount Value
- ------------------------------------------------------- ____________ _____________
U.S. Related;
Puerto Rico Highway and Transportation Authority, Highway Revenue, VRDN
3.125% (LOC; Union Bank of Switzerland) (a)
(cost $4,475,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,475,000 $ 4,475,000
_____________
TOTAL INVESTMENTS--100.0%
(cost $126,105,668) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98.6% $134,959,361
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4% $ 1,857,235
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $136,816,596
_______ _____________
Summary of Abbreviations
- -----------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
LOC Letter of Credit VRDN Variable Rate Demand Notes
Summary of Combined Ratings
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
_______ ________ __________________ ____________________
AAA Aaa AAA 55.5%
AA Aa AA 22.8
A A A 9.7
BBB Baa BBB 4.6
F1 MIG1 SP1 3.3
Not Rated (b) Not Rated (b) Not Rated (b) 4.1
_______
100.0%
_______
_______
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Securities payable on demand. Variable interest rate-subject to periodic
change.
(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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1998 (UNAUDITED)
Cost Value
____________ ____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $126,105,668 $134,959,361
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 167,148
Interest receivable . . . . . . . . . . . . . . . . . . . 1,817,628
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 30,442
_____________
136,974,579
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 58,094
Payable for shares of Beneficial Interest redeemed . . . 48,024
Accrued expenses . . . . . . . . . . . . . . . . . . . . 51,865
_____________
157,983
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $136,816,596
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $129,356,048
Accumulated net realized gain (loss) on investments . . . (1,393,145)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 8,853,693
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $136,816,596
_____________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED) . . . . . . 9,673,699
NET ASSET VALUE, offering and redemption price per share--Note 3(d). . . . . . . . . . . . $14.14
_______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $3,335,415
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $ 400,714
Shareholder servicing costs--Note 3(b) . . . . . 112,766
Trustees' fees and expenses--Note 3(c) . . . . . 21,796
Professional fees . . . . . . . . . . . . . . . . 16,558
Custodian fees . . . . . . . . . . . . . . . . . 8,563
Prospectus and shareholders' reports . . . . . . 7,042
Registration fees . . . . . . . . . . . . . . . . 5,018
Loan commitment fees--Note 2 . . . . . . . . . . 477
Miscellaneous . . . . . . . . . . . . . . . . . . 11,104
____________
Total Expenses . . . . . . . . . . . . . . 584,038
Less--reduction in management fee due to
undertaking--Note 3(a) . . . . . . . . . . . . (49,275)
____________
Net Expenses . . . . . . . . . . . . . . . 534,763
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,800,652
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . $ 432,328
Net unrealized appreciation (depreciation)
on investments . . . . . . . . . . . . . . . . 2,182,533
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 2, 614,861
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $5,415,513
___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1998 Year Ended
(Unaudited) March 31, 1998
________________ _________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,800,652 $ 5,637,098
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 432,328 182,503
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . 2,182,533 4,944,080
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . 5,415,513 10,763,681
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,800,652) (5,637,098)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . (1,930) --
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,802,582) (5,637,098)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 13,529,317 24,588,017
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,152,619 4,305,013
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,760,268) (31,201,513)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . 1,921,668 (2,308,483)
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . 4,534,599 2,818,100
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,281,997 129,463,897
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $136,816,596 $132,281,997
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 973,671 1,789,158
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . 154,528 313,425
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (991,156) (2,280,583)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . 137,043 (178,000)
_____________ _____________
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, 1998 Year Ended March 31,
_____________________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
____________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . $13.87 $13.33 $13.35 $13.03 $12.98 $13.18
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . .29 .60 .59 .60 .65 .69
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . .27 .54 (.01) .31 .05 (.19)
_______ _______ _______ _______ _______ _______
Total from Investment Operations . . . . . .56 1.14 .58 .91 .70 .50
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . (.29) (.60) (.60) (.59) (.65) (.69)
Dividends from net realized gain
on investments . . . . . . . . . . . . (.00)(1) -- -- -- -- (.01)
_______ _______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . (.29) (.60) (.60) (.59) (.65) (.70)
_______ _______ _______ _______ _______ _______
Net asset value, end of period . . . . . . $14.14 $13.87 $13.33 $13.35 $13.03 $12.98
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . 8.20%(2) 8.65% 4.38% 7.09% 5.60% 3.64%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . .80%(2) .78% .78% .72% .34% .01%
Ratio of net investment income
to average net assets . . . . . . . . . 4.19%(2) 4.34% 4.42% 4.46% 5.08% 5.07%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . .07%(2) .06% .06% .13% .50% .84%
Portfolio Turnover Rate . . . . . . . . . . 10.98%(3) 6.90% 29.56% 19.91% 31.66% 11.47%
Net Assets, end of period (000's Omitted) . . $136,817 $132,282 $129,464 $134,110 $131,681 $140,804
- ------------
(1) Amount represents less than $.01 per share.
(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, as amended (the "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 (the "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. Under the terms of the custodian
agreement, the Fund received net earnings credits of $6,578 during the period
ended September 30, 1998 based on available cash balances left on deposit.
Income earned under this arrangement is included in interest income.
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 of 1986, as
amended (the "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 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 $1,817,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1998. If not
applied, the carryover 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 (the "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. During the period ended
September 30, 1998, 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 had undertaken from April
1, 1998 through September 30, 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, exceeded 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
undertaking, amounted to $49,275 during the period ended September 30, 1998.
(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, 1998, the Fund was charged $65,187 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, 1998, the Fund was charged $8,563 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.
DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(d) A 1% redemption fee is charged and retained by the Fund 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, 1998,
the redemption fees amounted to $45.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended September 30, 1998
amounted to $14,790,158 and $14,089,329, respectively.
At September 30, 1998, accumulated net unrealized appreciation on investments
was $8,853,693, consisting of $8,856,452 gross unrealized appreciation and
$2,759 gross unrealized depreciation.
At September 30, 1998, 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).
(lion "d" logo) (reg.tm)
(reg.tm)
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. 914SA989
Connecticut
Intermediate
Municipal Bond
Fund
Semi-Annual
Report
September 30, 1998
