Dreyfus
Connecticut Intermediate Municipal Bond Fund
SEMIANNUAL REPORT September 30, 2000
(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
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
14 Financial Highlights
15 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
We are pleased to present this semiannual report for Dreyfus Connecticut
Intermediate Municipal Bond Fund, covering the six-month period from April 1,
2000 through September 30, 2000. 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.
Despite some modest fluctuations because of changing economic conditions,
municipal bond prices rose modestly over the past six months with a rally in the
municipal bond market. Most sectors of the municipal bond market have also
benefited from slowing economic growth as well. Additionally, the moderating
effects of the Federal Reserve Board's (the "Fed") interest-rate hikes during
the first half of 2000 helped the Fed to achieve its goal of slowing the U.S.
economy. Other factors such as higher energy prices and a weak euro also served
to slow economic growth.
In general, the overall investment environment that prevailed in the second half
of the 1990s had provided returns well above their long-term averages,
establishing unrealistic expectations for some investors. We believe that as the
risks of the stock market have become more apparent, the relative stability and
income potential of municipal bonds can make them an attractive investment as
part of a well-balanced portfolio.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620
Thank you for investing in Dreyfus Connecticut Intermediate Municipal Bond Fund
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 16, 2000
DISCUSSION OF FUND PERFORMANCE
Samuel Weinstock, Portfolio Manager
How did Dreyfus Connecticut Intermediate Municipal Bond Fund perform during the
period?
The portfolio produced a 3.24% total return over the six-month period ended
September 30, 2000.(1) This compares with a total return of 3.08% for the Lipper
Other States Intermediate Municipal Debt Funds category average over the same
period.(2)
We attribute our positive performance to a relatively strong investment
environment for municipal bonds, which was driven primarily by positive
supply-and-demand factors affecting municipal bonds. Our performance relative to
our peer group is primarily a result of differences in average maturity. The
average maturity of our peer group is approximately 10 years. We take a slightly
more conservative approach and it tends to help our relative performance during
declining markets, but may cause the fund to lag in rising markets.
What is the fund's investment approach?
The fund's objective is to seek as high a level of federal and Connecticut state
tax-exempt income 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 current income levels.
In pursuing this objective, we employ four primary strategies. First, we strive
to identify the maturity range that we believe will provide the most favorable
yields 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.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
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 yields 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.
What other factors influenced the fund's performance?
The fund was positively influenced over the past six months by favorable
economic and market conditions. When the reporting period began on April 1,
2000, the U.S. economy continued to grow strongly, raising concerns that
long-dormant inflationary pressures might reemerge. In response, the Federal
Reserve Board (the "Fed" ) raised short-term interest rates once during the
reporting period. However, signs soon emerged that the Fed's previous rate hikes
were having the desired effect of slowing the economy. Fewer housing starts,
moderating growth and little change in the core inflation rate may suggest that
the Fed's restrictive monetary policies could be near an end.
The continuing strength of the U.S. economy helped keep municipal bond yields
relatively low compared to taxable bonds. Connecticut enjoyed higher tax
revenues, curtailing the state' s need to borrow and resulting in a reduced
supply of securities compared to the same period in 1999. At the same time,
demand for municipal bonds has been strong from Connecticut residents seeking to
protect their wealth. When demand rises and supply falls, prices of existing
bonds tend to move higher.
In this environment, we sold some of our shorter term holdings that were less
liquid -- that is, more difficult to trade -- than we would have liked. By
selling these bonds into a secondary market characterized by very strong demand
from individual investors, we have generally been able to maximize the prices we
receive.
We redeployed the proceeds of those sales primarily into longer term bonds with
no provisions for early redemption by their issuers, which have typically been
colleges and housing authorities.
What is the fund's current strategy?
In our view, the current investment environment provides attractive incremental
returns for investors willing to hold lower rated investment-grade bonds.
Accordingly, we have begun to carefully examine some lower rated bonds from
Connecticut issuers that we believe to have sound credit characteristics. We
also intend to focus on risk management through broad diversification and by
maintaining a relatively short average maturity among our lower rated holdings.
October 16, 2000
(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. RETURN FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND
EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT THAT
MAY BE EXTENDED, TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT BEEN
ABSORBED, THE FUND'S RETURN WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER INC.
The Fund
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STATEMENT OF INVESTMENTS
September 30, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
LONG-TERM MUNICIPAL INVESTMENTS--99.5% Amount ($) Value ($)
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CONNECTICUT--82.7%
Bridgeport 6%, 9/1/2006 (Insured; AMBAC) 1,750,000 1,860,302
Chesire 5.10%, 8/15/2006 530,000 542,799
Columbia:
5.20%, 6/15/2002 265,000 268,548
5.30%, 6/15/2003 265,000 270,843
5.40%, 6/15/2004 265,000 273,279
State of Connecticut:
5.80%, 11/15/2002 1,500,000 1,543,500
5.25%, 3/15/2010 5,100,000 5,270,799
Clean Water Fund Revenue:
5.40%, 4/1/2003 1,000,000 1,023,830
5.40%, 6/1/2007 1,805,000 1,873,969
5.125%, 7/1/2007 (Insured; MBIA) 2,000,000 2,050,360
5.75%, 12/1/2013 75,000 77,425
5.75%, 12/1/2013 (Prerefunded 6/1/2004) 925,000 (a) 979,224
Special Tax Obligation Revenue
(Transportation Infrastructure):
5.60%, 9/1/2002 3,000,000 3,061,950
5.25%, 9/1/2007 1,115,000 1,147,848
5.25%, 9/1/2007 (Insured; MBIA) 1,360,000 1,409,001
5.375%, 9/1/2008 2,500,000 2,594,550
Connecticut Development Authority, Revenue:
(Duncaster Project) 5.50%, 8/1/2011 (Insured; AGIC) 2,405,000 2,475,082
First Mortgage Gross (Church Homes Inc.)
5.70%, 4/1/2012 1,240,000 1,109,540
Connecticut Health and Educational Facilities Authority, Revenue:
(Greenwich Hospital) 5.75%, 7/1/2006 (Insured; MBIA) 1,000,000 1,052,590
(Stamford Hospital) 5.20%, 7/1/2007 (Insured; MBIA) 2,210,000 2,271,239
(Quinnipiac College) 6%, 7/1/2013 2,445,000 2,456,247
(University of Hartford):
6.20%, 7/1/2001 750,000 755,332
6.25%, 7/1/2002 700,000 710,878
6.75%, 7/1/2012 3,500,000 3,597,895
(University of New Haven) 6%, 7/1/2006 800,000 808,896
(Windham Community Memorial Hospital)
5.75%, 7/1/2011(Insured; ACA) 900,000 910,809
Connecticut Higher Education
Supplemental Loan Authority, Revenue
Loan Authority Revenue, (Family Education Loan Program):
5.70%, 11/15/2004 1,155,000 1,186,254
5.80%, 11/15/2005 1,565,000 1,619,118
5.90%, 11/15/2006 1,650,000 1,718,343
5.50%, 11/15/2008 1,515,000 1,539,195
5.60%, 11/15/2009 1,605,000 1,640,069
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CONNECTICUT (CONTINUED)
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program):
5.90%, 5/15/2006 775,000 795,879
5.65%, 11/15/2007 1,000,000 1,014,790
6.20%, 5/15/2012 (Insured; MBIA) 1,000,000 1,040,170
5.90%, 11/15/2015 3,500,000 3,590,370
Connecticut Regional School District Number 5:
5.25%, 1/15/2004 (Insured; MBIA) 400,000 410,972
5.40%, 1/15/2005 (Insured; MBIA) 400,000 415,548
5.50%, 1/15/2006 (Insured; MBIA) 200,000 208,200
Connecticut Resource Recovery Authority, Revenue:
(American Fuel Corp.) 5.90%, 11/15/2015
(Guaranteed; Browning Ferris Industries Inc.) 6,750,000 6,758,437
(Bridgeport Resco Co. LP Project) 5.375%, 1/1/2006 2,500,000 2,582,875
Danbury:
5.10%, 8/15/2003 815,000 831,218
5.25%, 8/15/2004 815,000 839,263
Derby:
5.40%, 5/15/2004 (Insured; AMBAC) 420,000 434,700
5.50%, 5/15/2005 (Insured; AMBAC) 620,000 648,371
Eastern Connecticut Resources Recovery Authority,
Solid Waste Revenue
(Wheelabrator Lisbon Project):
5.25%, 1/1/2006 820,000 775,941
5.50%, 1/1/2014 2,000,000 1,755,920
East Hampton:
5.25%, 7/15/2004 (Insured; FGIC) 300,000 309,384
5.40%, 7/15/2005 (Insured; FGIC) 305,000 318,100
5.50%, 7/15/2006 (Insured; FGIC) 305,000 321,372
East Lime 5.20%, 8/1/2003 425,000 432,990
Greenwich Housing Authority, Housing Revenue
(Greenwich Close) 6.25%, 9/1/2017 2,000,000 1,894,120
Guilford:
5.50%, 10/15/2002 1,000,000 1,020,970
5.25%, 1/15/2004 300,000 307,581
5.40%, 1/15/2005 325,000 336,733
5.50%, 1/15/2006 325,000 337,477
Hamden:
5.25%, 10/1/2001 445,000 448,898
5.40%, 10/1/2003 425,000 435,820
Hartford 5.30%, 10/1/2008 (Insured; FGIC) 1,000,000 1,040,000
Middletown 5%, 4/15/2008 1,760,000 1,801,589
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CONNECTICUT (CONTINUED)
New Britain:
5.375%, 3/1/2003 (Insured; MBIA) 750,000 764,963
5.50%, 3/1/2004 (Insured; MBIA) 1,000,000 1,029,590
New Canaan:
5.25%, 2/1/2009 550,000 567,903
5.30%, 2/1/2010 650,000 672,679
New Haven:
6.50%, 12/1/2002 1,060,000 1,095,669
6.50%, 12/1/2002 (Escrowed to Maturity) 350,000 365,078
6.75%, 12/1/2005 845,000 901,108
5.25%, 8/1/2006 (Insured; FGIC) 1,200,000 1,236,060
New London 5.20%, 10/1/2003 (Insured; MBIA) 575,000 588,547
New Milford:
5.20%, 8/1/2003 550,000 560,488
5.40%, 8/1/2006 380,000 395,485
5.50%, 8/1/2007 425,000 445,799
Norwalk Maritime Center Authority, Revenue
(Maritime Center Project) 5.50%, 2/1/2003 670,000 684,894
Norwich 5.75%, 9/15/2005 875,000 919,756
South Central Connecticut Regional Water Authority,
Water Systems Revenue
5.50%, 8/1/2003 (Insured; FGIC) 2,000,000 2,055,020
Southington:
5.40%, 9/15/2005 (Insured; MBIA) 455,000 475,175
5.50%, 9/15/2006 (Insured; MBIA) 455,000 480,066
Stamford:
6.625%, 3/15/2004 1,620,000 1,733,708
6.625%, 3/15/2004 (Escrowed to Maturity) 1,130,000 1,205,959
Stratford 5.625%, 11/1/2007 (Insured; FGIC) 2,490,000 2,586,388
University of Connecticut 5.75%, 3/1/2013 1,850,000 1,956,171
Wallingford:
5.40%, 6/15/2003 400,000 410,552
5.30%, 6/1/2004 500,000 514,990
Waterbury 5%, 4/15/2003 (Insured; FGIC) 2,060,000 2,081,754
Westport:
5.10%, 6/15/2003 500,000 507,990
5.20%, 6/15/2004 500,000 518,125
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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U.S. RELATED--16.8%
Commonwealth of Puerto Rico:
5.30%, 7/1/2004 (Insured; MBIA) 1,000,000 1,037,260
5.25%, 7/1/2014 (Insured; MBIA) 1,000,000 1,025,070
Public Improvement 5.25%, 7/1/2012 (Insured; FSA) 2,600,000 2,693,340
Puerto Rico Electric and Power Authority, Power Revenue
6.125%, 7/1/2009 (Insured; MBIA) 4,000,000 4,468,840
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002 3,900,000 3,985,566
Virgin Islands:
7.75%, 10/1/2006 1,160,000 1,210,947
Subordinate Tax (Insurance Claims Fund Program
General Obligation Matching Fund) 5.65%, 10/1/2003 2,040,000 2,065,724
Virgin Islands Public Finance Authority,
Revenue, Matching Fund Loan Notes:
6.90%, 10/1/2001 2,000,000 2,057,100
5.50%, 10/1/2008 1,500,000 1,510,125
Virgin Islands Public Finance Authority, Revenue, Gross Receipts
Taxes Loan Notes 5.625%, 10/1/2010 1,000,000 1,018,370
Virgin Islands Water and Power Authority,
Water Systems Revenue 7.20%, 1/1/2002 100,000 101,997
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TOTAL INVESTMENTS
(cost $122,375,903) 99.5% 125,135,658
CASH AND RECEIVABLES (NET) .5% 570,413
NET ASSETS 100.0% 125,706,071
</TABLE>
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Summary of Abbreviations
ACA American Capital Access
AGIC Asset Guaranty
Insurance Company
AMBAC American Municipal Bond
Assurance Corporation
FGIC Financial Guaranty
Insurance Company
FSA Financial Security Assurance
MBIA Municipal Bond
Investors Assurance
Insurance Corporation
<TABLE>
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Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 41.6
AA Aa AA 24.9
A A A 12.3
BBB Baa BBB 11.6
F1 Mig1 SP1 5.4
Not Rated (b) Not Rated (b) Not Rated (b) 4.2
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000 (Unaudited)
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 122,375,903 125,135,658
Cash 2,356,439
Receivable for investment securities sold 304,785
Interest receivable 1,885,405
Prepaid expenses 3,114
129,685,401
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 73,569
Payable for investment securities purchased 3,847,844
Payable for shares of Beneficial Interest redeemed 10,707
Accrued expenses 47,210
3,979,330
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NET ASSETS ($) 125,706,071
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 124,949,710
Accumulated undistributed investment income--net 15,129
Accumulated net realized gain (loss) on investments (2,018,523)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 2,759,755
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NET ASSETS ($) 125,706,071
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
9,310,619
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 13.50
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended September 30, 2000 (Unaudited)
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INVESTMENT INCOME ($):
INTEREST INCOME 3,251,959
EXPENSES:
Management fee--Note 3(a) 372,701
Shareholder servicing costs--Note 3(b) 84,523
Professional fees 18,586
Trustees' fees and expenses--Note 3(c) 15,339
Prospectus and shareholders' reports 7,028
Custodian fees 6,225
Registration fees 5,516
Loan commitment fees--Note 2 220
Miscellaneous 10,189
TOTAL EXPENSES 520,327
Less--reduction in management fee due to
undertaking--Note 3(a) (23,172)
NET EXPENSES 497,155
INVESTMENT INCOME--NET 2,754,804
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 232,150
Net unrealized appreciation (depreciation) on investments 973,387
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,205,537
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,960,341
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 2000 Year Ended
(Unaudited) March 31, 2000
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OPERATIONS ($):
Investment income--net 2,754,804 5,816,665
Net realized gain (loss) on investments 232,150 (834,765)
Net unrealized appreciation (depreciation)
on investments 973,387 (5,356,159)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 3,960,341 (374,259)
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DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (2,739,675) (5,816,665)
Net realized gain on investments (20,344) --
TOTAL DIVIDENDS (2,760,019) (5,816,665)
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BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 8,252,441 25,831,459
Dividends reinvested 2,127,328 4,556,685
Cost of shares redeemed (11,575,846) (40,456,606)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (1,196,077) (10,068,462)
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,245 (16,259,386)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 125,701,826 141,961,212
END OF PERIOD 125,706,071 125,701,826
Undistributed investment income-net 15,129 --
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 614,276 1,903,739
Shares issued for dividends reinvested 158,723 337,472
Shares redeemed (866,088) (2,999,430)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (93,089) (758,219)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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.
<TABLE>
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Six Months Ended
September 30, 2000 Year Ended March 31,
----------------------------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996
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PER SHARE DATA ($):
Net asset value,
beginning of period 13.37 13.97 13.87 13.33 13.35 13.03
Investment Operations:
Investment income--net .30 .58 .58 .60 .59 .60
Net realized and unrealized
gain (loss) on investments .13 (.60) .10 .54 (.01) .31
Total from Investment Operations .43 (.02) .68 1.14 .58 .91
Distributions:
Dividends from
investment income--net (.30) (.58) (.58) (.60) (.60) (.59)
Dividends from net realized
gain on investments .00(a) -- -- -- -- --
Total Distributions (.30) (.58) (.58) (.60) (.60) (.59)
Net asset value, end of period 13.50 13.37 13.97 13.87 13.33 13.35
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TOTAL RETURN (%) 6.46(b) (.10) 4.96 8.65 4.38 7.09
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .80(b) .79 .80 .78 .78 .72
Ratio of net investment income
to average net assets 4.43(b) 4.29 4.13 4.34 4.42 4.46
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation .04(b) .03 .06 .06 .06 .13
Portfolio Turnover Rate 18.88(c) 13.33 12.71 6.90 29.56 19.91
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Net Assets, end of period
($ x 1,000) 125,706 125,702 141,961 132,282 129,464 134,110
(A) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(B) ANNUALIZED.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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.,
which is a wholly-owned subsidiary of Mellon Financial Corporation. Dreyfus
Service Corporation (the "Distributor" ), a wholly-owned subsidiary of the
Manager, 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 pri The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
marily 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 receives net earnings credits based on available cash
balances left on deposit.
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 has an unused capital loss carryover of approximately $1,428,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 2000. 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, $1,385,000 of the carryover expires in fiscal 2004 and $43,000
expires in fiscal 2008.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 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, 2000, 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, 2000 through September 30, 2000 to reduce the management fee paid by the
fund, to the extent that the fund's aggregate annual expenses, exclusive of
taxes, brokerage fees, 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 $23,172 during the period ended September 30, 2000.
(b) Under the fund' s Shareholder Services Plan, the fund reimburses the
Distributor 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 The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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, 2000, the fund
was charged $48,000 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, 2000, the fund was charged $23,850 pursuant to the transfer
agency agreement.
(c) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective August 2, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $25,000 and an attendance fee of $4,000 for each in person meeting
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The chairman of the Board receives an additional 25% of such
compensation. Prior to August 2, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the fund an annual fee
of $1,500 and an attendance fee of $500 per meeting. The Chairman of the Board
received an additional 25% of such compensation. Subject to the fund's Emeritus
Program Guidelines, Emeritus Board Members, if any, receive 50% of the fund's
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
(d) A 1% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through use of the fund exchange privilege. Prior to June 1, 2000, this fee was
chargeable within fifteen days following the date of issuance. During the period
ended September 30, 2000, redemption fees amounted to $10.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 2000 amounted to
$24,969,635 and $22,818,306, respectively.
At September 30, 2000, accumulated net unrealized appreciation on investments
was $2,759,755, consisting of $2,890,076 gross unrealized appreciation and
$130,321 gross unrealized depreciation.
At September 30, 2000, 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
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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) 2000 Dreyfus Service Corporation 914SA009
