Dreyfus
Connecticut Intermediate Municipal Bond Fund
SEMIANNUAL REPORT September 30, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
15 Financial Highlights
16 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Connecticut
Intermediate Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Connecticut
Intermediate Municipal Bond Fund, covering the six-month period from April 1,
1999 through September 30, 1999. Inside, you'll find valuable information about
how the fund was managed during the reporting period, including a discussion
with the fund's portfolio manager, Samuel Weinstock.
When the reporting period began, evidence had emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might re-emerge caused the Federal Reserve Board to raise short-term interest
rates twice during the summer of 1999, effectively offsetting most of last fall'
s interest-rate cuts. Higher interest rates led to some erosion of municipal
bond prices, especially toward the end of the reporting period.
In this environment, however, the yields of tax-exempt bonds have recently been
quite attractive compared to the after-tax yields of taxable bonds of comparable
maturity and credit quality. This is especially true for investors in the higher
federal income tax brackets.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Connecticut Intermediate Municipal Bond
Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 15, 1999
DISCUSSION OF FUND PERFORMANCE
Samuel Weinstock, Portfolio Manager
How did Dreyfus Connecticut Intermediate Municipal Bond Fund perform during the
period?
The fund produced a -1.38% total return over the six-month period ended
September 30, 1999,(1) compared to a -2.05% total return for the Other States
Intermediate Municipal Debt Funds category average.(2) We attribute our relative
outperformance both to our security selection strategy, which helped mitigate
the effects of rising interest rates, and the nature of Connecticut's municipal
bond market, in which a lack of new issuance has supported existing bond prices.
What is the fund's investment approach?
The fund' s objective is to seek as high a level of income exempt from federal
and Connecticut state income taxes as is consistent with the preservation of
capital. To pursue this goal, we have attempted to manage the portfolio with an
eye toward maintaining or improving income. Total return, which includes capital
gains, is not a primary objective.
In pursuing these goals, we employ four primary strategies. First, we strive to
identify the maturity range that we believe will provide the most favorable
returns over the next year or two. Second, we evaluate issuers' credit quality
to find bonds that we believe provide high yields at attractive prices. Third,
we look for bonds with attractively high interest payments, even if they sell at
a premium to face value. Fourth, we assess individual bonds' early redemption
features, focusing on those that cannot be redeemed quickly by their issuers.
Typically, the bonds we select for the portfolio will have several of these
qualities.
We also evaluate the bonds' likely performance under various market scenarios.
We generally select securities that we believe are most likely to provide the
best returns over an anticipated range of interest-rate levels. In other cases,
we hold certain securities because of our belief that they will participate
strongly in market rallies and provide protection against market declines.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
First, and perhaps most important, the Federal Reserve Board increased
short-term interest rates twice during the summer in an attempt to forestall
inflationary pressures. While the U.S. economy has continued to grow with little
actual increase in inflation, the Federal Reserve Board is concerned that
continued unrestrained growth could cause dormant inflationary pressures to
re-awaken. This tightening of the nation's monetary policy -- which essentially
rescinds two-thirds of 1998' s interest-rate cuts -- led to higher yields for
most fixed-income securities. Because bond prices and yields move in opposite
directions, municipal bond prices fell.
Second, strong economic conditions have contributed to the nation's first
federal budget surplus in many years. While the government has had less need to
issue U.S. Treasury securities, demand has remained high from domestic and
overseas investors. This imbalance between supply and demand constrained the
rise of taxable bond yields relative to tax-exempt bonds. As a result, municipal
bonds are currently offering tax-exempt yields that compare very favorably with
taxable yields after adjusting for taxes.
What is the fund's current strategy?
We have continued to search for attractive bonds in Connecticut's municipal bond
market. When we identified bonds that we believed would help us maintain or
increase income, we attempted to upgrade the portfolio by replacing existing
holdings with new, more attractive securities. This strategy led us to eliminate
a number of deep discount bonds from the portfolio, especially those that were
potentially subject to disqualification from tax-exempt status when held by
corporations. We also sold bonds that we considered too vulnerable to
interest-rate risk, especially those that could have been redeemed by their
issuers within the next several years.
We have attempted to replace these securities with shorter maturity bonds and
insured bonds(3) that we believe are less vulnerable to rising interest rates.
By reducing the portfolio' s maturity risk, we expect to
be better able to maintain the fund's income and share price for as long as
interest rates continue to rise. Perhaps just as important, shorter maturity
bonds may give us greater flexibility to extend our maturities when interest
rates peak. By doing so, we hope to lock in yields and participate in the
potential for capital appreciation.
However, our ability to find bonds that meet our criteria has been limited. In a
strong economy, fewer Connecticut issuers have needed to borrow in the
tax-exempt marketplace. As a result, we have been quick to respond to any new
bond issuance that gives us an opportunity to upgrade the portfolio.
October 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES FOR NON-CONNECTICUT RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE
FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF
ANY, ARE FULLY TAXABLE.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
(3) NEITHER THE MARKET VALUE OF THE BONDS COVERED BY SUCH INSURANCE, NOR FUND
SHARES, ARE INSURED. INSURANCE EXTENDS ONLY TO THE REPAYMENT OF PRINCIPAL OR TO
PORTFOLIO BONDS THAT DEFAULT.
The Fund
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STATEMENT OF INVESTMENTS
September 30, 1999 (Unaudited)
Principal
Long-Term Municipal Investments--98.3% Amount ($) Value ($)
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Connecticut--82.9%
Bridgeport 6%, 9/1/2006 (Insured; AMBAC) 1,750,000 1,883,525
Chesire 5.10%, 8/15/2006 530,000 542,773
Columbia:
5.20%, 6/15/2002 265,000 271,665
5.30%, 6/15/2003 265,000 273,838
5.40%, 6/15/2004 265,000 275,809
State of Connecticut:
5.80%, 11/15/2002 1,500,000 1,569,750
5.25%, 3/15/2010 5,500,000 5,604,060
5.125%, 8/15/2011 500,000 500,545
5.25%, 3/1/2012 3,000,000 3,009,810
5.25%, 12/15/2012 300,000 301,110
Clean Water Fund Revenue:
5.40%, 4/1/2003 1,000,000 1,034,590
5.40%, 6/1/2007 1,805,000 1,869,709
5.125%, 7/1/2007 (Insured; MBIA) 2,000,000 2,041,100
5.75%, 12/1/2013 1,000,000 1,023,510
Special Assessment Second Injury Fund Revenue
5.20%, 1/1/2010 (Insured; AMBAC) 3,000,000 3,025,590
Special Tax Obligation Revenue
(Transportation Infrastructure):
5.60%, 9/1/2002 3,000,000 3,110,400
5.25%, 9/1/2007 1,115,000 1,146,577
5.25%, 9/1/2007 (Insured; MBIA) 1,360,000 1,399,413
Connecticut Clean Water Fund, Revenue 5.125%, 9/1/2012 740,000 735,138
Connecticut Development Authority, Revenue
(Duncaster Project) 5.50%, 8/1/2011 (Insured; AGIC) 2,405,000 2,422,508
Connecticut Health and Educational Facilities Authority, Revenue:
(Connecticut State University System):
5%, 11/1/2007 (Insured; MBIA) 1,820,000 1,844,697
5.125%, 11/1/2010 (Insured; MBIA) 1,145,000 1,149,454
(Greenwich Hospital) 5.75%, 7/1/2006 (Insured; MBIA) 1,000,000 1,059,780
(Kent School) 5.10%, 7/1/2007 (Insured; MBIA) 500,000 509,740
(Stamford Hospital) 5.20%, 7/1/2007 (Insured; MBIA) 2,210,000 2,245,758
(University of Hartford):
6.20%, 7/1/2001 750,000 763,118
6.25%, 7/1/2002 700,000 715,855
(University of New Haven) 6%, 7/1/2006 900,000 912,096
(Yale New Haven Hospital) 5.50%, 7/1/2010 1,810,000 1,863,666
Connecticut Higher Education Supplemental
Loan Authority, Revenue (Family Education Loan Program):
5.70%, 11/15/2004 1,220,000 1,267,714
5.80%, 11/15/2005 1,655,000 1,724,361
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
- -------------------------------------------------------------------------------------------------------------------------
Connecticut (continued)
Connecticut Higher Education Supplemental Loan
Authority, Revenue (continued)
(Family Education Loan Program):
5.90%, 11/15/2006 1,745,000 1,823,804
5.50%, 11/15/2008 1,615,000 1,608,023
5.60%, 11/15/2009 1,715,000 1,706,511
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program):
5.90%, 5/15/2006 775,000 802,520
5.65%, 11/15/2007 1,000,000 1,018,500
5.50%, 11/15/2035 850,000 788,647
Connecticut Municipal Electric Energy Cooperative, Power Supply
System Revenue:
5%, 1/1/2008 (Insured; MBIA) 1,500,000 1,511,490
5%, 1/1/2010 (Insured; MBIA) 1,570,000 1,560,549
Connecticut Regional School District Number 5:
5.25%, 1/15/2004 (Insured; MBIA) 400,000 413,216
5.40%, 1/15/2005 (Insured; MBIA) 400,000 416,392
5.50%, 1/15/2006 (Insured; MBIA) 400,000 415,852
Connecticut Resource Recovery Authority,
Revenue (Bridgeport Resco Co. LP Project)
5.375%, 1/1/2006 2,500,000 2,573,250
Danbury:
5.10%, 8/15/2003 815,000 837,274
5.25%, 8/15/2004 815,000 844,153
Derby:
5.40%, 5/15/2004 (Insured; AMBAC) 420,000 436,863
5.50%, 5/15/2005 (Insured; AMBAC) 620,000 648,439
Eastern Connecticut Resources Recovery Authority,
Solid Waste Revenue
(Wheelabrator Lisbon Project) 5.25%, 1/1/2006 820,000 805,174
East Hampton:
5.25%, 7/15/2004 (Insured; FGIC) 300,000 310,953
5.40%, 7/15/2005 (Insured; FGIC) 305,000 318,536
5.50%, 7/15/2006 (Insured; FGIC) 305,000 320,018
East Lyme:
5.20%, 8/1/2003 425,000 437,686
5.60%, 8/1/2009 415,000 429,085
Easton:
5.05%, 6/1/2007 270,000 275,416
5.15%, 6/1/2008 270,000 275,397
5.25%, 6/1/2009 245,000 250,020
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
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Connecticut (continued)
Guilford:
5.50%, 10/15/2002 1,000,000 1,035,730
5.25%, 1/15/2004 300,000 310,269
5.40%, 1/15/2005 325,000 338,786
5.50%, 1/15/2006 325,000 338,344
Glastonbury:
4.125%, 4/1/2009 500,000 466,505
4.25%, 4/1/2010 700,000 652,344
4.50%, 4/1/2012 700,000 650,188
Hamden:
5.25%, 10/1/2001 445,000 454,959
5.40%, 10/1/2003 425,000 440,997
Hartford 5.30%, 10/1/2008 (Insured; FGIC) 1,000,000 1,027,220
Meriden 5.50%, 11/15/2001 (Insured; MBIA) 1,300,000 1,338,077
Middletown 5%, 4/15/2008 1,760,000 1,773,957
New Britain:
5.375%, 3/1/2003 (Insured; MBIA) 750,000 773,790
5.50%, 3/1/2004 (Insured; MBIA) 1,000,000 1,041,060
New Canaan:
5.25%, 2/1/2009 550,000 568,046
5.30%, 2/1/2010 650,000 673,095
New Fairfield 4.80%, 3/15/2003 (Insured; MBIA) 550,000 558,300
New Haven:
6.50%, 12/1/2002 1,060,000 1,115,968
6.50%, 12/1/2002 (Escrowed to Maturity) 350,000 373,279
6.75%, 12/1/2005 845,000 922,199
5.25%, 8/1/2006 (Insured; FGIC) 1,200,000 1,235,652
5%, 8/1/2008 (Insured; FGIC) 2,185,000 2,194,002
New London:
5.10%, 10/1/2002 (Insured; MBIA) 300,000 307,416
5.20%, 10/1/2003 (Insured; MBIA) 575,000 592,883
New Milford:
5.20%, 8/1/2003 550,000 566,225
5.40%, 8/1/2006 380,000 395,713
5.50%, 8/1/2007 425,000 444,635
Norwalk Maritime Center Authority,
Revenue (Martime Center Project)
5.50%, 2/1/2003 670,000 693,329
Norwich 5.75%, 9/15/2005 875,000 927,605
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
- -------------------------------------------------------------------------------------------------------------------------
Connecticut (continued)
Redding:
6.55%, 4/15/2008 200,000 223,912
6.60%, 4/15/2009 200,000 224,398
South Central Connecticut Regional Water Authority,
Water Systems Revenue:
5.50%, 8/1/2003 (Insured; FGIC) 2,000,000 2,080,680
5.25%, 8/1/2011 (Insured; FGIC) 890,000 896,506
Southington:
5.40%, 9/15/2005 (Insured; MBIA) 455,000 475,002
5.50%, 9/15/2006 (Insured; MBIA) 455,000 477,068
5.60%, 9/15/2007 (Insured; MBIA) 455,000 477,268
Stamford:
6.625%, 3/15/2004 1,620,000 1,764,439
6.625%, 3/15/2004 (Escrowed to Maturity) 1,130,000 1,228,423
7.75%, 1/15/2005 1,650,000 1,892,501
Stratford 5.625%, 11/1/2007 (Insured; FGIC) 2,490,000 2,585,591
University of Connecticut , College and University Revenue:
4.75%, 2/1/2008 (Insured; FGIC) 3,000,000 2,978,430
5%, 6/1/2010 (Insured; MBIA) 2,620,000 2,612,323
Vernon:
5.30%, 9/15/2004 (Insured; MBIA) 360,000 373,878
5.40%, 9/15/2005 (Insured; MBIA) 360,000 375,826
5.50%, 9/15/2006 (Insured; MBIA) 360,000 375,282
Wallingford:
5.40%, 6/15/2003 400,000 414,284
5.30%, 6/1/2004 500,000 517,605
Waterbury:
4.90%, 4/15/2002 (Insured; FGIC) 1,650,000 1,672,176
5%, 4/15/2003 (Insured; FGIC) 2,060,000 2,095,700
West Haven 4.10%, 2/1/2008 (Insured; AMBAC) 585,000 548,180
Westport:
5.10%, 6/15/2003 500,000 514,150
5.20%, 6/15/2004 500,000 517,560
U.S. Related--15.4%
Commonwealth of Puerto Rico:
5.30%, 7/1/2004 (Insured; MBIA) 1,000,000 1,042,720
Public Improvement 5.25%, 7/1/2012 2,600,000 2,589,028
Puerto Rico Electric and Power Authority, Power Revenue
6.125%, 7/1/2009 (Insured; MBIA) 4,000,000 4,390,600
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
Long-Term Municipal Investments (continued) Amount ($) Value ($)
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Connecticut (continued)
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002 3,900,000 4,028,466
Virgin Islands, Subordinate Tax (Insurance Claims Fund Program
General Obligation Matching Fund) 5.65%, 10/1/2003 2,545,000 2,609,847
Virgin Islands Public Finance Authority,
Revenue, Matching Fund Loan Notes:
6.90%, 10/1/2001 2,000,000 2,118,080
5.50%, 10/1/2008 1,500,000 1,510,575
Virgin Islands Port Authority, Airport Revenue
4.35%, 9/1/2003 2,830,000 2,771,447
Virgin Islands Water and Power Authority,
Water Systems Revenue
7.20%, 1/1/2002 200,000 207,302
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Total Investments
(cost $133,422,875) 98.3% 135,725,247
Cash and Receivables (Net) 1.7% 2,314,680
Net Assets 100.0% 138,039,927
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Summary of Abbreviations
AGIC Asset Guaranty Insurance Company MBIA Municipal Bond
AMBAC American Municipal Bond Investors Assurance
Assurance Corporation Insurance Corporation
FGIC Financial Guaranty Insurance Company
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Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 54.8
AA Aa AA 24.3
A A A 13.3
BBB Baa BBB 5.5
Not Rated (a) Not Rated (a) Not Rated (a) 2.1
100.0
(A) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1999 (Unaudited)
Cost Value
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Assets ($):
Investments in securities--See Statement of
Investments 133,422,875 135,725,247
Cash 487,049
Interest receivable 1,854,372
Receivable for investment securities sold 101,840
Prepaid expenses 11,589
138,180,097
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 77,341
Payable for shares of Beneficial Interest redeemed 731
Accrued expenses 62,098
140,170
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NET ASSETS ($) 138,039,927
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 137,152,550
Accumulated net realized gain (loss) on investments (1,414,995)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 2,302,372
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NET ASSETS ($) 138,039,927
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
10,229,272
Net Asset Value, offering and redemption price per share--Note 3(d) ($)
13.49
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Investment Income ($):
Interest Income 3,491,071
Expenses:
Management fee--Note 3(a) 419,694
Shareholder servicing costs--Note 3(b) 97,512
Professional fees 15,081
Registration fees 7,652
Trustees' fees and expenses--Note 3(c) 6,699
Custodian fees 5,350
Prospectus and shareholders' reports 4,518
Loan commitment fees--Note 2 296
Miscellaneous 11,245
Total Expenses 568,047
Less--reduction in management fee due to
undertaking--Note 3(a) (17,429)
Net Expenses 550,618
Investment Income--Net 2,940,453
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Realized and Unrealized Gain (Loss) on Investments--Note 4 ($):
Net realized gain (loss) on investments (19,431)
Net unrealized appreciation (depreciation) on investments (4,840,155)
Net Realized and Unrealized Gain (Loss) on Investments (4,859,586)
Net (Decrease) in Net Assets Resulting from Operations (1,919,133)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1999 Year Ended
(Unaudited) March 31, 1999
- --------------------------------------------------------------------------------
Operations ($):
Investment income--net 2,940,453 5,614,799
Net realized gain (loss) on investments (19,431) 429,909
Net unrealized appreciation (depreciation)
on investments (4,840,155) 471,367
Net Increase (Decrease) in Net Assets
Resulting from Operations (1,919,133) 6,516,075
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (2,940,453) (5,614,799)
Net realized gain on investments -- (1,930)
Total Dividends (2,940,453) (5,616,729)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 16,089,522 30,133,025
Dividends reinvested 2,319,988 4,348,768
Cost of shares redeemed (17,471,209) (25,701,924)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions 938,301 8,779,869
Total Increase (Decrease) in Net Assets (3,921,285) 9,679,215
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 141,961,212 132,281,997
End of Period 138,039,927 141,961,212
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,172,721 2,154,340
Shares issued for dividends reinvested 169,787 310,650
Shares redeemed (1,275,163) (1,839,719)
Net Increase (Decrease) in Shares Outstanding 67,345 625,271
SEE NOTES TO FINANCIAL STATEMENTS.
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FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Six Months Ended
September 30, 1999 Year Ended March 31,
------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
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Per Share Data ($):
Net asset value,
beginning of period 13.97 13.87 13.33 13.35 13.03 12.98
Investment Operations:
Investment income--net .29 .58 .60 .59 .60 .65
Net realized and unrealized
gain (loss) on investments (.48) .10 .54 (.01) .31 .05
Total from Investment Operations (.19) .68 1.14 .58 .91 .70
Distributions:
Dividends from investment
income--net (.29) (.58) (.60) (.60) (.59) (.65)
Net asset value, end of period 13.49 13.97 13.87 13.33 13.35 13.03
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return (%) (2.75)(a) 4.96 8.65 4.38 7.09 5.60
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Ratios/Supplemental Data (%):
Ratio of expenses to
average net assets .79(a) .80 .78 .78 .72 .34
Ratio of net investment income
to average net assets 4.19(a) 4.13 4.34 4.42 4.46 5.08
Decrease reflected in above
expense ratios due to
undertakings by the Manager .02(a) .06 .06 .06 .13 .50
Portfolio Turnover Rate 4.69(b) 12.71 6.90 29.56 19.91 31.66
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Net Assets, end of period
($ x 1,000) 138,040 141,961 132,282 129,464 134,110 131,681
(A) ANNUALIZED.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
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The 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 custody
agreement, the fund received net earnings credits of $3,305 during the period
ended September 30, 1999 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.
(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
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
The fund has an unused capital loss carryover of approximately $1,385,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1999. This amount
is calculated based on federal income tax regulations which may differ from
financial reporting in accordance with generally accepted accounting principles.
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, 1999, 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, 1999 through September 30, 1999 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 $17,429 during the period ended September 30, 1999.
(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, 1999, the fund
was charged $55,729 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, 1999, the fund was charged $25,683 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 and retained by the fund on shares redeemed
within fifteen days following the date of issuance, including redemptions made
through use of the fund's Exchange privilege. During the period ended September
30, 1999, redemption fees retained by the fund amounted to $245.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 1999 amounted to
$8,559,755 and $6,405,690, respectively.
At September 30, 1999, accumulated net unrealized appreciation on investments
was $2,302,372, consisting of $3,312,385 gross unrealized appreciation and
$1,010,013 gross unrealized depreciation.
At September 30, 1999, 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).
The Fund
NOTES
For More Information
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
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 914SA999
