DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus New Jersey
Intermediate Municipal Bond Fund. For its semi-annual reporting period ended
September 30, 1996, your portfolio produced a total return of 1.82%, which
includes bond price changes and interest income.* Income dividends exempt
from Federal and State of New Jersey personal income taxes of approximately
$.301 per share were paid to shareholders.** This is equivalent to an
annualized tax-free distribution rate per share of 4.43%.***
THE ECONOMY
Low inflation in the face of ongoing strong growth in new jobs and low
unemployment remained the big economic story over the reporting period. On
September 24, the Federal Reserve Board's Open Market Committee ("the Fed")
again decided against raising interest rates. Despite what appeared to be a
sharp split within the Fed, the Central Bank kept the Fed Funds rate at
5.25%.
The potential resurgence in inflation has been a primary concern of the
Fed as the economic expansion continues. Yet inflation has remained subdued.
The Consumer Price Index has risen just 2.9% over the past twelve months.
Furthermore, indications of inflation at crude, intermediate and finished
goods levels, as measured by the Producer Price Index, remained well-behaved.
There appear to be few signs of inflation in the production pipeline.
The past inverse relationship between unemployment and inflation has so
far not prevailed during this economic expansion. Most recently, the
unemployment rate fell to 5.1%, its lowest level in seven years. Job growth
has continued to be robust. Yet despite signs of a tightening labor market,
wage gains, considered by many economists to be a harbinger of future
inflation, remained modest, as have virtually all measures of inflation.
Buoyed by such good news, consumers remained confident. The Conference
Board's Consumer Confidence Index has risen since the beginning of the year
and was near a six-year high by the end of the reporting period. Yet, there
were some signs that consumer spending was moderating from its strong pace in
the first half of the year. Retail sales remained subdued all summer.
Consumer borrowing rose over the reporting period, continuing the three-year
trend of steady increases in credit.
Industrial production has risen consistently since February and
businesses showed some signs of inventory accumulation by late summer.
Corporate pricing power still seems to be in check. In a survey of member
corporations released in mid-September, the National Federation of
Independent Business reported that only 20% of its respondents planned to
increase prices in coming months.
Despite all these favorable developments, we are alert for signs of
potential economic excess that could result in a resurgence in inflation.
THE MARKET
During the period, we took a cautious approach to the bond market's
volatility. We were wary of the market's strength and its dependence on
continued low inflation. Also, uncertainty associated with the upcoming
Presidential election fueled the opinions of the market soothsayers and added
an additional ingredient of contention to an already tenuous market.
Overall, we remained fully invested for the most part due to a lack of
supply of bonds with good structural characteristics. We emphasized the sale
of short call and short maturity bonds and tried to establish a more aggressive
stance. We felt it was more important to take a longer-term view than pursue a
market fraught with numerous pitfalls.
Inflationary concerns plagued many investors. This posture was
exacerbated by anticipated moves by the Fed. The market reflected these
concerns by recoiling with every rumor relating to possible Fed action. When
all was said and done, however, the Fed maintained the Fed Funds rate at
5.25%. With the temporary dissipation of that cloud of uncertainty (at least
until the Fed's next meeting in November), the market responded with a more
positive tone, but continued to operate within a moderate range.
THE PORTFOLIO
The Dreyfus New Jersey Intermediate Municipal Bond Fund has maintained a
relatively defensive posture for two reasons. The first relates to the vastly
diminished level of new issues coming to the market. The second reflects the
erratic performance of the long U.S. Treasury bond. Municipal bond prices are
frequently influenced by the long U.S. Treasury bond market, which has
operated within a range for the six-month period ended September 30, 1996 of
between 7.19% and 6.69%.
The Fund bought a number of discount bonds in both the primary and
secondary markets when opportunities were present, with a focus on
performance-based coupons. Overall, however, the Fund continues to be largely
invested in defensive, higher yielding coupons which proved to be beneficial
in this volatile market. As we move forward, the Fund would ideally like to
invest a larger portion of its assets in discount bonds. In order to attain
this goal, however, more supply needs to enter the New Jersey bond market.
Should this happen, we would be in a better position to sell premium bonds,
take profits, and improve the structural characteristics of the portfolio.
Our primary goal is to protect principal, maintain liquidity, and
distribute a high level of current tax exempt income to you, our
shareholders. These factors continue to motivate our portfolio management
decisions. The high level of volatility exhibited by the market in recent
years underscores the need to maintain a disciplined and longer-term
perspective.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
October 18, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
*** Distribution rate per share is based upon dividends per share paid
from net investment income during the period (annualized), divided by the net
asset value per share at the end of the period.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
------- -------
<S> <C> <C>
NEW JERSEY-82.3%
Bayshore Regional Sewer Authority, Subordinated Sewer Revenue:
5.10%, 5/1/2004 (Insured; MBIA)......................................... $ 1,110,000 $ 1,122,121
5.30%, 4/1/2008 (Insured; MBIA)......................................... 1,000,000 1,001,620
5.40%, 4/1/2009 (Insured; MBIA)......................................... 1,000,000 1,001,440
Burlington County, Refunding 5.35%, 9/15/2003............................... 1,000,000 1,029,490
Camden County, Refunding 5.40%, 6/1/2001 (Insured; MBIA).................... 2,500,000 2,582,475
Camden County Improvement Authority, Revenue:
County Guaranteed Lease:
5.40%, 12/1/2002...................................................... 855,000 884,130
5.85%, 10/1/2006 (Insured; MBIA)...................................... 1,000,000 1,058,110
(Health Services Center) 4.80%, 12/1/2004 (Insured; AMBAC).............. 1,555,000 1,541,129
Camden County Municipal Utilities Authority, County Agreement Sewer Revenue,
Refunding:
5.50%, 7/15/2005 (Insured; FGIC)...................................... 1,000,000 1,034,780
5%, 7/15/2009 (Insured; FGIC)......................................... 2,000,000 1,922,160
Cherry Hill Township:
General and Water Assessment 5.30%, 9/1/2002............................ 1,220,000 1,257,710
Sewer and Sewer Assessment 5.30%, 9/1/2002.............................. 150,000 154,637
Delaware River and Bay Authority, Revenue 5.10%, 1/1/2009 (Insured; FGIC)... 815,000 794,291
Dover Township:
5.80%, 10/15/2001 (Insured; AMBAC)...................................... 1,740,000 1,834,969
5.90%, 10/15/2002 (Insured; AMBAC)...................................... 1,640,000 1,744,648
Township of East Brunswick, Refunding 4.75%, 4/1/2004....................... 1,310,000 1,303,869
East Windsor Municipal Utility Authority, Revenue, Refunding
4.80%, 12/1/2004 (Insured; AMBAC)....................................... 1,260,000 1,246,430
Essex County Improvement Authority, Revenue:
(Irvington County School District) 6.10%, 10/1/2001 (Insured; FSA)...... 1,415,000 1,510,513
Lease, Refunding (County Jail and Youth House Project)
5%, 12/1/2009 (Insured; AMBAC)........................................ 1,575,000 1,512,473
Galloway Township School District, Refunding 4.60%, 12/15/2007 (Insured; AMBAC) 1,005,000 947,745
Gloucester Township, Refunding 5.20%, 7/15/2004 (Insured; AMBAC)............ 795,000 811,520
Hamilton Township:
General Improvement:
5.20%, 9/1/2001 (Insured; FGIC)....................................... 600,000 616,332
5.20%, 9/1/2002 (Insured; FGIC)....................................... 600,000 616,104
Sewer Utility:
5.20%, 9/1/2001 (Insured; FGIC)....................................... 450,000 462,249
5.20%, 9/1/2002 (Insured; FGIC)....................................... 450,000 462,078
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------- -------
NEW JERSEY (CONTINUED)
Highland Park, Water and Sewer Utility:
6%, 10/15/2003.......................................................... $ 360,000 $ 384,048
6%, 10/15/2004.......................................................... 470,000 499,173
Hillside Township 6.60%, 2/15/2007 (Insured; MBIA).......................... 1,000,000 1,099,570
City of Hoboken Parking Authority, Parking General Revenue, Refunding:
6.10%, 3/1/2002......................................................... 375,000 391,823
6.20%, 3/1/2003......................................................... 395,000 415,425
Hudson County:
4.70%, 8/1/2002......................................................... 500,000 492,305
4.75%, 8/1/2003......................................................... 500,000 489,410
Hudson County Improvement Authority, Solid Waste System Revenue
6.75%, 1/1/2003......................................................... 3,000,000 3,005,490
Hunterdon County, General Improvement:
4.25%, 12/15/2006....................................................... 1,600,000 1,462,240
4.25%, 12/15/2007....................................................... 1,600,000 1,437,312
Jersey City, Water Refunding:
5.20%, 10/1/2008 (Insured; AMBAC)....................................... 1,565,000 1,539,913
5.30%, 10/1/2009 (Insured; AMBAC)....................................... 1,295,000 1,273,399
Lacy Municipal Utilities Authority, Water Revenue:
5.10%, 12/1/2003 (Insured; MBIA)........................................ 1,060,000 1,080,638
5.20%, 12/1/2004 (Insured; MBIA)........................................ 1,215,000 1,241,268
Long Branch Sewerage Authority, Revenue, Refunding:
5%, 6/1/2003 (Insured; FGIC)............................................ 610,000 617,723
5.10%, 6/1/2004 (Insured; FGIC)......................................... 690,000 699,791
Manalapan-Englishtown Regional School District Board of Education (School
Bonds)
5%, 5/1/2004............................................................ 1,950,000 1,972,620
Mercer County Improvement Authority, Revenue:
Refunding (Special Services School District) 5.30%, 12/15/2002.......... 845,000 873,113
Township Guaranteed Refunding (Hamilton Board of Education Lease Project)
5.70%, 6/1/2002 (Insured; MBIA)....................................... 470,000 492,527
Middlesex County Utilities Authority, Sewer Revenue, Refunding
5%, 9/15/2008 (Insured; FGIC)........................................... 1,000,000 969,780
Township of Middletown, Refunding 4.90%, 8/1/2004........................... 1,810,000 1,808,371
City of Newark Board of Education 5.875%, 12/15/2006 (Insured; MBIA)........ 1,755,000 1,859,177
State of New Jersey:
5.80%, 8/1/2001......................................................... 2,000,000 2,110,400
5.90%, 8/1/2002......................................................... 2,000,000 2,130,040
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------- -------
NEW JERSEY (CONTINUED)
New Jersey Economic Development Authority:
District Heating and Cooling Revenue (Trenton-Trigen Project)
6.10%, 12/1/2004...................................................... $ 3,375,000 $ 3,494,610
Economic Growth Revenue:
4.80%, 10/1/2003 (LOC; National Westminster Bank) (a)................. 820,000 814,801
5%, 10/1/2005 (LOC; National Westminster Bank) (a).................... 1,255,000 1,250,507
Market Transition Facility Revenue 7%, 7/1/2004 (Insured; MBIA)......... 2,275,000 2,574,367
Waste Paper Recycling (MPMI Inc. Project) 5.75%, 2/1/2004............... 2,500,000 2,520,900
New Jersey Educational Facilities Authority, Revenue:
Higher Educational Facilities (Saint Peter's College Issue) 6%, 7/1/1998 280,000 287,504
Higher Educational Facilities Trust Fund:
5.125%, 9/1/2006 (Insured; AMBAC)..................................... 2,775,000 2,785,600
5.125%, 9/1/2009 (Insured; AMBAC)..................................... 2,000,000 1,952,120
(Institute of Advanced Study) 6.15%, 7/1/2004........................... 560,000 595,840
Refunding (Ramapo College) 5.15%, 7/1/2004 (Insured; MBIA).............. 1,010,000 1,027,675
(Rowan College) 5.15%, 7/1/2004 (Insured; MBIA)......................... 825,000 839,438
New Jersey Health Care Facilities Financing Authority, Revenue:
(Allegany Health System - Our Lady of Lourdes Medical Center Issue)
4.80%, 7/1/2005 (Insured; MBIA)....................................... 1,580,000 1,550,786
(Deborah Heart and Lung Center Issue):
5.60%, 7/1/2003....................................................... 1,710,000 1,730,229
5.80%, 7/1/2004....................................................... 745,000 757,144
5.90%, 7/1/2005....................................................... 790,000 806,859
(Mountainside Hospital) 5.10%, 7/1/2003 (Insured; MBIA)................. 1,630,000 1,657,335
Refunding:
(Atlantic City Medical Center Issue):
6.25%, 7/1/2000................................................... 430,000 450,842
6.30%, 7/1/2001................................................... 3,365,000 3,549,166
(Burdette Tomlin Memorial Hospital Issue) 6%, 7/1/2003 (Insured; FGIC) 1,665,000 1,774,341
(Chilton Memorial Hospital) 4.80%, 7/1/2004........................... 2,120,000 2,065,495
(Raritan Bay Medical Center Issue) 6.625%, 7/1/2005................... 2,800,000 2,762,256
(Robert Wood Johnson University Center) 5%, 7/1/2008 (Insured; MBIA).. 1,500,000 1,448,790
(Saint Joseph's Hospital and Medical Center) 5.15%, 7/1/2006 2,555,000 2,515,960
(Insured; Connie Lee)
(West Jersey Health System) 5.45%, 7/1/2002 (Insured; MBIA)........... 2,160,000 2,240,114
New Jersey Higher Education Assistance Authority, Student Loan Revenue:
6.80%, 7/1/2000......................................................... 785,000 830,797
(NJClass Loan Program) 5.60%, 1/1/2001.................................. 1,040,000 1,070,368
New Jersey Highway Authority, Senior Parkway Revenue, Refunding
(Garden State Parkway):
5.70%, 1/1/2002....................................................... 500,000 522,165
5.90%, 1/1/2004....................................................... 500,000 530,200
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------- -------
NEW JERSEY (CONTINUED)
New Jersey Housing and Mortgage Finance Agency, Housing Revenue, Refunding:
6.20%, 11/1/2004........................................................ $ 4,000,000 $ 4,169,960
6.60%, 11/1/2004........................................................ 3,660,000 3,899,767
New Jersey Sports and Exposition Authority, Convention Center Luxury Tax
Revenue
5.75%, 7/1/2002 (Insured; MBIA)......................................... 2,000,000 2,107,200
New Jersey Transportation Trust Fund Authority, Transportation System:
6.25%, 12/15/2003....................................................... 5,315,000 5,774,429
5.125%, 6/15/2007 (Insured; AMBAC)...................................... 2,500,000 2,485,575
4.875%, 12/15/2008 (Insured; MBIA)...................................... 3,000,000 2,871,930
New Jersey Turnpike Authority, Turnpike Revenue:
5.70%, 1/1/2001 (Insured; AMBAC)........................................ 1,000,000 1,041,780
5.80%, 1/1/2002 (Insured; AMBAC)........................................ 2,230,000 2,337,018
New Jersey Wastewater Treatment Trust:
5.90%, 5/01/2003 (Insured; MBIA)........................................ 1,400,000 1,484,476
Loan Revenue 6.30%, 7/1/2005............................................ 3,595,000 3,847,836
North Brunswick Township 6.30%, 5/15/2006................................... 1,860,000 1,997,268
North Jersey District Water Supply Commission, Revenue, Refunding
(Wanaque South Project) 5.40%, 7/1/2002 (Insured; MBIA)................. 2,795,000 2,895,955
Ocean County, General Improvement:
5.25%, 9/1/2001......................................................... 1,600,000 1,652,016
7.50%, 10/15/2001....................................................... 550,000 620,505
5.30%, 9/1/2003......................................................... 2,115,000 2,188,496
5.125%, 7/1/2004........................................................ 1,000,000 1,015,260
5.65%, 7/1/2005......................................................... 1,600,000 1,674,592
Parsippany - Troy Hills Township, Refunding 6%, 4/1/2004.................... 1,630,000 1,745,127
City of Perth Amboy Board of Education, COP, Lease Purchase Agreement
(FWB Leasecorp,Inc.) 5.60%, 12/15/2002 (Insured; FSA)................... 1,265,000 1,327,327
Pinelands Regional Board of Education, Refunding COP, Lease Purchase
Agreement
(A & R Hunt Enterprises, Inc.) 5.70%, 2/15/2003 (Insured; FSA).......... 350,000 367,591
Port Authority of New York and New Jersey:
(Consolidated Board 91st Series) 4.70%, 11/15/2004...................... 2,000,000 1,968,220
(Consolidated Board 101st Series) 5.25%, 9/15/2006 (Insured; MBIA)...... 1,000,000 1,003,820
Township of Roxbury, Water and Sewer Assessment
5.05%, 8/1/2004 (Insured; AMBAC)........................................ 1,175,000 1,188,183
Rutgers State University, University Revenue, Refunding
(State University of New Jersey) 6.30%, 5/1/2005........................ 2,900,000 3,127,853
South Jersey Port Corp., Marine Terminal Revenue:
4.85%, 1/1/2001......................................................... 790,000 786,943
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------- -------
NEW JERSEY (CONTINUED)
South Jersey Port Corp., Marine Terminal Revenue (continued):
5.05%, 1/1/2003......................................................... $ 835,000 $ 827,443
5.30%, 1/1/2005......................................................... 930,000 929,303
5.40%, 1/1/2006......................................................... 1,010,000 1,009,182
South Jersey Transportation Authority, Transportation System Revenue
5.50%, 11/1/2002 (Insured; MBIA)........................................ 2,000,000 2,086,440
South River School District 5%, 12/1/2008 (Insured; FGIC)................... 1,100,000 1,077,835
Southern Regional High School District 5.50%, 9/1/2011 (Insured; MBIA)...... 1,600,000 1,602,944
Sussex County Municipal Utilities Authority, Wastewater Facilities Revenue,
Refunding
5%, 12/1/2003 (Insured; MBIA)........................................... 1,755,000 1,778,622
Trenton 5.25%, 8/1/2002 (Insured; FGIC)..................................... 1,000,000 1,029,010
Warren County Pollution Control Financing Authority, Landfill Revenue,
Refunding
5.60%, 12/1/2002........................................................ 1,765,000 1,706,137
Washington Township Board of Education 5.10%, 2/1/2007 (Insured; MBIA)...... 3,100,000 3,076,440
West Deptford Township, Refunding 5.20%, 3/1/2011 (Insured; AMBAC).......... 2,000,000 1,944,000
West Morris Regional High School District Board of Education, School
5.875%, 1/15/2004....................................................... 250,000 266,587
West Windsor Township, General Improvement:
5.70%, 10/15/2002....................................................... 600,000 625,572
5.90%, 10/15/2003....................................................... 600,000 627,822
West Windsor-Plainsboro Regional Board of Education, Refunding COP,
Lease Purchase Agreement (Lamington Funding Corp.)
5.50%, 3/15/2003 (Insured; MBIA)........................................ 1,115,000 1,154,438
Western Monmouth Utilities Authority, Revenue, Refunding
5.15%, 2/1/2008 (Insured; AMBAC)........................................ 1,000,000 988,100
Woodbridge Township:
5.65%, 8/15/2002........................................................ 1,320,000 1,381,921
6.20%, 8/15/2007........................................................ 2,000,000 2,116,500
U.S. RELATED -17.7%
Guam Airport Authority, General Revenue 6%, 10/1/2000....................... 1,200,000 1,233,420
Guam Government 5.75%, 8/15/1999............................................ 6,250,000 6,377,000
Commonwealth of Puerto Rico, Improvement, Refunding:
5.20%, 7/1/2003......................................................... 2,195,000 2,196,054
5.20%, 7/1/2003 (Insured; MBIA)......................................... 5,000,000 5,147,200
5.30%, 7/1/2004 (Insured; MBIA)......................................... 8,000,000 8,263,600
Puerto Rico Electric Power Authority, Electric Revenue, Refunding
5.50%, 7/1/2002 (Insured; FSA).......................................... 4,560,000 4,768,529
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------- -------
U.S. RELATED (CONTINUED)
Puerto Rico Highway and Transportation Authority, Highway Revenue, Refunding
5.10%, 7/1/2003 (Insured; MBIA)......................................... $ 3,000,000 $ 3,071,130
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental
Control
Facilities Financing Authority, Higher Education Revenue
(Polytechnic University of Puerto Rico) 5.40%, 8/1/2003................. 1,010,000 991,840
Puerto Rico Municipal Finance Agency 5.60%, 7/1/2002........................ 2,100,000 2,162,139
Virgin Islands, Subordinated Special Tax
(Insurance Claims Fund Program/ GO Matching Fund) 5.65%, 10/1/2003...... 3,275,000 3,362,508
Virgin Islands Public Finance Authority, Revenue, Refunding
(Matching Fund Loan Notes) 7%, 10/1/2002................................ 250,000 268,687
Virgin Islands Water and Power Authority, Water System Revenue 7.20%, 1/1/2002 400,000 416,376
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TOTAL INVESTMENTS-100.0%
(cost $213,511,133)..................................................... $217,270,694
=======
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation GO General Obligation
COP Certificate of Participation LOC Letter of Credit
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FSA Financial Security Assurance Insurance Corporation
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
FITCH (B) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- ----- ----- ---------- ------------
<S> <C> <S> <C>
AAA Aaa AAA 51.0%
AA Aa AA 20.1
A A A 14.8
BBB Baa BBB 9.0
BB Ba BB .8
Not Rated (c) Not Rated (c) Not Rated (c) 4.3
----
100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letter of credit.
(b) Fitch currently provides creditworthiness information for a limited
number of investments.
(c) Securities which, while not rated by Fitch, Moody's or Standard and
Poor's, have been determined by the Manager to be of comparable quality
to those rated securities in which the Fund may invest.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $213,511,133)-see statement..................................... $217,270,694
Cash.................................................................... 5,007,793
Interest receivable..................................................... 3,211,611
Receivable for shares of Beneficial Interest subscribed................. 150
Prepaid expenses........................................................ 4,824
-------
225,495,072
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $111,852
Payable for shares of Beneficial Interest redeemed...................... 600
Accrued expenses........................................................ 79,357 191,809
----- -------
NET ASSETS ................................................................ $225,303,263
=======
REPRESENTED BY:
Paid-in capital......................................................... $227,139,028
Accumulated net realized (loss) on investments.......................... (5,595,326)
Accumulated net unrealized appreciation on investments-Note 3........... 3,759,561
-------
NET ASSETS at value applicable to 16,838,172 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest
authorized)............................................................. $225,303,263
=======
NET ASSET VALUE, offering and redemption price per share
($225,303,263 / 16,838,172 shares)...................................... $13.38
=======
See independent accountants' review report and notes to financial statements.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 5,874,325
EXPENSES:
Management fee-Note 2(a).............................................. $ 674,237
Shareholder servicing costs-Note 2(b)................................. 151,803
Professional fees..................................................... 19,022
Trustees' fees and expenses-Note 2(c)................................. 12,881
Custodian fees........................................................ 11,602
Prospectus and shareholders' reports.................................. 5,682
Miscellaneous......................................................... 11,784
------
TOTAL EXPENSES.................................................. 887,011
Less-reduction in management fee due to
undertaking-Note 2(a)............................................. 10,159
------
NET EXPENSES.................................................... 876,852
------
INVESTMENT INCOME-NET........................................... 4,997,473
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS-Note 3:
Net realized gain on investments........................................ $ 366,817
Net unrealized (depreciation) on investments............................ (1,441,956)
------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (1,075,139)
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 3,922,334
======
See independent accountants' review report and notes to financial statements.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MARCH 31, SEPTEMBER 30, 1996
1996 (UNAUDITED)
------- -----------
OPERATIONS:
Investment income-net.............................................. $ 10,191,123 $ 4,997,473
Net realized gain on investments................................... 105,560 366,817
Net unrealized appreciation (depreciation) on investments for the period 5,330,288 (1,441,956)
------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............. 15,626,971 3,922,334
------- -------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net.............................................. (10,135,889) (5,052,707)
------- -------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold...................................... 48,864,663 21,953,983
Dividends reinvested............................................... 8,637,889 4,290,303
Cost of shares redeemed............................................ (55,158,432) (28,844,568)
------- -------
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS........................ 2,344,120 (2,600,282)
------- -------
TOTAL INCREASE (DECREASE) IN NET ASSETS...................... 7,835,202 (3,730,655)
NET ASSETS:
Beginning of period................................................ 221,198,716 229,033,918
------- -------
End of period (including undistributed investment income-net;
$55,234 on March 31, 1996)....................................... $229,033,918 $225,303,263
======= =======
SHARES SHARES
------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold........................................................ 3,617,778 1,647,113
Shares issued for dividends reinvested............................. 639,685 321,463
Shares redeemed.................................................... (4,088,326) (2,165,552)
------- -------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING.................... 169,137 (196,976)
======= =======
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED MARCH 31, SEPTEMBER 30, 1996
----------------------------------------
PER SHARE DATA: 1993(1) 1994 1995 1996 (UNAUDITED)
---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $12.50 $13.28 $13.08 $13.12 $13.44
--- --- --- --- ---
INVESTMENT OPERATIONS:
Investment income-net........................ .60 .68 .65 .60 .30
Net realized and unrealized gain (loss) on investments .78 (.20) .04 .32 (.06)
--- --- --- --- ---
TOTAL FROM INVESTMENT OPERATIONS........... 1.38 .48 .69 .92 .24
--- --- --- --- ---
DISTRIBUTIONS;
Dividends from investment income-net......... (.60) (.68) (.65) (.60) (.30)
--- --- --- --- ---
Net asset value, end of period............... $13.28 $13.08 $13.12 $13.44 $13.38
=== === === === ===
TOTAL INVESTMENT RETURN.......................... 13.48%(2) 3.52% 5.45% 7.09% 3.63%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... - .06% .45% .72% .78%(2)
Ratio of net investment income to
average net assets......................... 5.27%(2) 4.97% 5.02% 4.47% 4.45%(2)
Decrease reflected in above expense ratios due
to undertakings by the Manager............. 1.10%(2) .83% .45% .06% .01%(2)
Portfolio Turnover Rate...................... 32.99%(3) 5.99% 35.01% 13.69% 6.29%(3)
Net Assets, end of period (000's Omitted).... $129,197 $238,292 $221,199 $229,034 $225,303
(1) From May 27, 1992 (commencement of operations) to March 31, 1993.
(2) Annualized.
(3) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus New Jersey Intermediate Municipal Bond Fund (the "Fund") is
registered under the Investment Company Act of 1940 ("Act") as a
non-diversified open-end management investment company. The Fund's investment
objective is to provide investors with as high a level of current income
exempt from Federal and New Jersey income taxes as is consistent with the
preservation of capital. The Dreyfus Corporation ("Manager") serves as the
Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. Premier Mutual Fund Services, Inc. acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(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
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
provisions of the Internal Revenue Code, and to make distributions of income
and net realized capital gain sufficient to relieve it from substantially all
Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $5,807,300
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1996. The
carryover does not include net realized securities losses from November 1,
1995 through March 31, 1996 which are treated, for Federal income tax
purposes, as arising in fiscal 1997. If not applied, $5,400 of the carryover
expires in fiscal 2002, $3,341,300 expires in fiscal 2003 and $2,460,600
expires in fiscal 2004.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed the expense limitation of any state having jurisdiction over
the Fund, the Fund may deduct from payments to be made to the Manager, or the
Manager will bear the amount of such excess to the extent required by state
law. However, the Manager has undertaken from April 1, 1996 through March 31,
1997 to reduce the management fee paid by or reimburse such excess expenses
of the Fund, to the extent that the Fund's aggregate annual expenses
(exclusive of certain expenses as described above) exceed an annual rate of
.80 of 1% of the value of the Fund's average daily net assets. The reduction
in management fee, pursuant to the undertaking, amounted to $10,159 during
the six months ended September 30, 1996.
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the six months ended September 30, 1996, the Fund was charged an
aggregate of $66,370 pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $60,047 during the six months ended September 30,
1996.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended September 30,
1996, amounted to $13,755,638 and $22,627,803, respectively.
At September 30, 1996, accumulated net unrealized appreciation on
investments was $3,759,561, consisting of $4,730,872 gross unrealized
appreciation and $971,311 gross unrealized depreciation.
At September 30, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus New Jersey Intermediate Municipal Bond Fund, including the statement
of investments, as of September 30, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended September 30, 1996. These financial statements and
financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit in
accordance with generally accepted auditing standards, which will be
performed for the full year with the objective of expressing an opinion
regarding the financial statements and financial highlights taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
March 31, 1996 and financial highlights for each of the four years in the
period ended March 31, 1996 and in our report dated May 3, 1996, we expressed
an unqualified opinion on such statement of changes in net assets and
financial highlights.
(Ernst & Young LLP, Signature)
New York, New York
November 1, 1996
[Dreyfus lion "d" logo]
New Jersey
Intermediate
Municipal
Bond Fund
Semi-Annual
Report
September 30, 1996
DREYFUS NEW JERSEY 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. 751SA969
[Dreyfus logo]
