Dreyfus
New Jersey 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
13 Statement of Assets and Liabilities
14 Statement of Operations
15 Statement of Changes in Net Assets
16 Financial Highlights
17 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus New Jersey
Intermediate Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus New Jersey
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, Joseph Darcy.
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 New Jersey Intermediate Municipal Bond
Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 15, 1999
DISCUSSION OF FUND PERFORMANCE
Joseph Darcy, Portfolio Manager
How did Dreyfus New Jersey Intermediate Municipal Bond Fund perform during the
period?
The fund produced a -1.11% total return(1) over the six-month period ended
September 30, 1999, compared to a total return of -2.05% for the Other States
Intermediate Municipal Debt Funds category.(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 New Jersey'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 New Jersey state income taxes as is consistent with the preservation of
capital. We also seek to provide a competitive total return consistent with this
income objective.
In pursuing these goals, we employ two primary strategies. First, we evaluate
interest-rate trends and supply-and-demand factors in the bond market. Based on
that assessment, we select the individual intermediate-term, tax-exempt bonds
that we believe are most likely to provide the highest returns with the least
risk. We look at such criteria as the bond' s yield, price, age, the
creditworthiness of its issuer, and any provisions for early redemption.
Second, we actively manage the portfolio's average duration -- a measure of
sensitivity to changes in interest rates -- in anticipation of temporary
supply-and-demand changes. If we expect the supply of newly issued bonds to
increase temporarily, we may reduce the portfolio's average duration to make
cash available for the purchase of higher yielding securities. Conversely, if we
expect demand for municipal bonds to surge at a time when we anticipate little
issuance, we may increase the portfolio's average duration to maintain current
yields for as long as practical.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
Because of strong economic conditions throughout the country, New Jersey and its
municipalities have had little need to borrow. As a result, fewer tax-exempt
bonds were issued during the first nine months of 1999 than during the same
period one year ago. Yet demand from New Jersey residents seeking to minimize
their income tax liabilities remained high, especially in the intermediate-term
market segment.
In addition, the fund was affected by rising interest rates over the past six
months. Economies in Japan and Southeast Asia appear to have begun to recover,
and the growth of the U.S. economy has been stronger than most analysts
expected. This economic news raised concerns among some fixed-income investors
that inflationary pressures might re-emerge. In fact, the Federal Reserve Board
increased short-term interest rates twice during the summer of 1999 in an
attempt to forestall a reacceleration of inflation. Because the market
anticipated these changes in monetary policy before they were announced, longer
term tax-exempt yields had already risen by the time the interest-rate hikes
were actually implemented.
Finally, 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 has recently
constrained the rise of taxable bond yields relative to tax-exempt bond yields.
As a result, municipal bonds -- including those from New Jersey issuers -- 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 continue to search for the most attractive values in New Jersey's municipal
bond market. We have found such values, in our opinion, in very high-quality
bonds, including New Jersey's general obligation bonds and essential services
revenue debt. Because the differences in yields between the highest quality
bonds and lower quality bonds have
been narrow by historical standards, currently we see little reason to assume
the added credit risk that lower rated bonds entail.
We have maintained the fund's average duration toward the short end of its range
in a rising interest-rate environment. As of September 30, the fund's average
duration was about 4.94 years, compared to a "neutral" position in the six-year
range. This relatively short average duration was designed to seek to capture
higher yields as they became available. In addition, this position is intended
to give us the flexibility we need to capture any Y2K-related opportunities for
higher income as the new year approaches. Although we do not expect New Jersey
issuers to experience any inordinate Y2K problems, we intend to remain alert to
the possibility that Y2K-related concerns may cause temporary disruptions in
market liquidity.
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-NEW JERSEY 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.
The Fund
<TABLE>
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STATEMENT OF INVESTMENTS
September 30, 1999 (Unaudited)
Principal
LONG-TERM MUNICIPAL INVESTMENTS--97.5% Amount ($) Value ($)
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NEW JERSEY--91.2%
Atlantic County Utilities Authority, Sewer Revenue
5%, 1/15/2009 (Insured; AMBAC) 2,760,000 2,756,743
Bayshore Regional Sewer Authority, Subordinated Sewer Revenue:
5.10%, 5/1/2004 (Insured; MBIA) 1,110,000 1,137,051
5.30%, 4/1/2008 (Insured; MBIA) 1,000,000 1,029,290
5.40%, 4/1/2009 (Insured; MBIA) 1,000,000 1,029,870
Brick Township Municipal Utilities Authority,
Water and Sewer Revenue
5.10%, 12/1/2009 (Insured; FGIC) 1,500,000 1,514,670
Burlington County:
5.20%, 10/1/2009 2,000,000 2,018,820
5.35%, 9/15/2003 1,000,000 1,026,760
Camden County Improvement Authority, Revenue:
County Guaranteed Lease:
5.40%, 12/1/2002 855,000 882,916
5.85%, 10/1/2006 (Insured; MBIA) 1,000,000 1,063,130
(Health Services Center) 4.80%, 12/1/2004 (Insured; AMBAC) 1,555,000 1,571,561
Camden County Municipal Utilities Authority,
County Agreement Sewer Revenue:
5.50%, 7/15/2005 (Insured; FGIC) 1,000,000 1,043,940
5%, 7/15/2009 (Insured; FGIC) 3,200,000 3,196,096
Cherry Hill Township, Sewer and Sewer Assessment
5.30%, 9/1/2002 1,370,000 1,409,251
Delaware River and Bay Authority, Revenue 5.10%,
1/1/2009 (Insured; FGIC) 815,000 822,311
Dover Township 5.90%, 10/15/2002 (Insured; AMBAC) 1,640,000 1,719,032
Township of East Brunswick 4.75%, 4/1/2004 1,310,000 1,325,602
Essex County Improvement Authority, Revenue Lease
(County Jail and Youth House Project)
5%, 12/1/2009 (Insured; AMBAC) 1,575,000 1,573,031
Gloucester Township 5.20%, 7/15/2004 (Insured; AMBAC) 795,000 820,941
Greenwich Township Board of Education,
5%, 1/15/2011 (Insured; FSA) 1,015,000 999,877
Hamilton Township:
General Improvement 5.20%, 9/1/2002 (Insured; FGIC) 600,000 616,386
Sewer Utility 5.20%, 9/1/2002 (Insured; FGIC) 450,000 462,290
Hillside Township:
6.60%, 2/15/2007 (Insured; MBIA) (Prerefunded 2/15/2002) 705,000 (a) 755,929
6.60%, 2/15/2007 (Insured; MBIA). 295,000 314,028
City of Hoboken Parking Authority, Parking General Revenue:
6.10%, 3/1/2002 375,000 388,200
6.20%, 3/1/2003 395,000 413,687
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
Hudson County:
4.75%, 8/1/2003 500,000 503,365
Vocational School Improvement
5.05%, 10/1/2008 (Insured; FSA) 1,010,000 1,016,898
Hudson County Improvement Authority,
Solid Waste System Revenue
6.75%, 1/1/2003 3,000,000 3,144,870
Jackson Township School District
4.625%, 12/15/2008 (Insured; FSA) 1,325,000 1,295,771
Jersey City:
Public Improvement 5.25%, 9/1/2010 (Insured; MBIA) 1,605,000 1,634,997
Water 5.20%, 10/1/2008 (Insured; AMBAC) 1,565,000 1,595,987
Lacy Municipal Utilities Authority, Water Revenue:
5.10%, 12/1/2003 (Insured; MBIA) 1,060,000 1,089,754
5.20%, 12/1/2004 (Insured; MBIA) 1,215,000 1,252,908
Long Branch Sewerage Authority, Revenue:
5%, 6/1/2003 (Insured; FGIC) 610,000 623,176
5.10%, 6/1/2004 (Insured; FGIC) 690,000 706,781
Manalapan-Englishtown Regional
School District Board of Education
(School Bonds) 5%, 5/1/2004 1,950,000 1,992,764
Mercer County Improvement Authority, Revenue:
(Special Services School District) 5.30%, 12/15/2002 845,000 870,908
Township Guaranteed (Hamilton Board of
Education Lease Project)
5.70%, 6/1/2002 (Insured; MBIA) 470,000 486,694
Middlesex County Utilities Authority, Sewer Revenue
5%, 9/15/2008 (Insured; FGIC) 1,000,000 1,005,520
Township of Middletown 4.90%, 8/1/2004 1,810,000 1,839,865
Monmouth County:
5.10%, 10/1/2010 2,600,000 2,614,066
4.80%, 7/15/2011 1,510,000 1,461,665
Monmouth County Improvement Authority, Revenue
(Correctional Facilities) 5%, 8/1/2009 1,500,000 1,503,615
City of Newark Board of Education 5.875%,
12/15/2006 (Insured; MBIA) 1,755,000 1,874,603
State of New Jersey:
5.90%, 8/1/2002 2,000,000 2,088,520
4.75%, 8/1/2015 1,600,000 1,452,832
New Jersey Economic Development Authority, Revenue:
District Heating and Cooling (Trenton-Trigen Project)
6.10%, 12/1/2004 3,245,000 3,336,412
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
New Jersey Economic Development Authority, Revenue (continued):
Economic Growth Revenue:
4.80%, 10/1/2003 (LOC; National Westminister Bank) 550,000 548,317
5%, 10/1/2005 (LOC; National Westminister Bank) 890,000 898,633
Market Transition Facility Revenue
7%, 7/1/2004 (Insured; MBIA) 2,275,000 2,502,955
(Transportation Project Sublease)
5.25%, 5/1/2011 (Insured; FSA) 2,210,000 2,231,879
(Trenton Office Complex) 5.25%, 6/15/2009 (Insured; FSA) 2,500,000 2,544,525
Waste Paper Recycling (MPMI Inc. Project) 5.75%, 2/1/2004 2,500,000 2,507,000
New Jersey Educational Facilities Authority, Revenue:
College and University:
(Institute of Advanced Study)
6.15%, 7/1/2004 (Prerefunded 7/1/2001) 560,000 (a) 584,545
(Princeton Theological):
4.70%, 7/1/2010 880,000 851,998
4.80%, 7/1/2011 920,000 887,478
4.875%, 7/1/2012 965,000 924,229
(Ramapo College) 5.15%, 7/1/2004 (Insured; MBIA) 1,010,000 1,037,088
(Rowan College) 5.15%, 7/1/2004 (Insured; MBIA) 825,000 847,127
(Saint Peter's College) 5%, 7/1/2008 2,200,000 2,130,128
(University of Medicine and Dentistry)
5%, 12/1/2004 (Insured; AMBAC) 5,090,000 5,202,387
Higher Educational Facilities Trust Fund:
5.125%, 9/1/2006 (Insured; AMBAC) 2,775,000 2,841,406
5.125%, 9/1/2009 (Insured; AMBAC) 2,000,000 2,015,440
New Jersey Environmental Infrastructure Trust,
Waste Water Treatment
5%, 9/1/2007 1,820,000 1,846,663
New Jersey Health Care Facilities Financing Authority,
Health Hospital and Nursing Home Revenue:
(Deborah Heart and Lung Center Issue):
5.60%, 7/1/2003 1,710,000 1,719,354
5.80%, 7/1/2004 745,000 754,007
5.90%, 7/1/2005 790,000 802,798
(Mountainside Hospital) 5.10%, 7/1/2003 (Insured; MBIA) 1,630,000 1,665,860
(Burdette Tomlin Memorial Hospital Issue)
6%, 7/1/2003 (Insured; FGIC) 1,665,000 1,742,206
(Rahway Hospital Obligated Group Issue) 5%, 8/1/2008 2,000,000 1,916,880
(Raritan Bay Medical Center Issue) 6.625%, 7/1/2005 2,800,000 2,831,556
(Robert Wood Johnson University Center)
5%, 7/1/2008 (Insured; MBIA) 1,500,000 1,502,520
(Saint Joseph's Hospital and Medical Center)
5.15%, 7/1/2006 (Insured; Connie Lee) 2,555,000 2,609,549
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
New Jersey Health Care Facilities Financing Authority,
Health Hospital and Nursing Home Revenue (continued):
(West Jersey Health System)
5.45%, 7/1/2002 (Insured; MBIA) 2,160,000 2,225,664
New Jersey Higher Education Assistance Authority,
Student Loan Revenue:
6.80%, 7/1/2000 525,000 534,996
(NJ Class Loan Program) 5.60%, 1/1/2001 810,000 820,319
New Jersey Highway Authority, Senior Parkway Revenue
(Garden State Parkway):
5.70%, 1/1/2002 500,000 515,220
5.90%, 1/1/2004 500,000 523,680
New Jersey Housing and Mortgage Finance Agency,
Housing Revenue:
6.20%, 11/1/2004 4,000,000 4,171,080
6.60%, 11/1/2004 3,660,000 3,847,282
New Jersey Sports and Exposition Authority,
Convention Center Luxury Tax
Revenue 5.75%, 7/1/2002 (Insured; MBIA) 2,000,000 2,076,220
New Jersey Transportation Trust Fund Authority,
Transportation System:
5.125%, 6/15/2007 (Insured; AMBAC) 2,500,000 2,547,625
4.875%, 12/15/2008 (Insured; MBIA) 3,000,000 2,988,780
New Jersey Wastewater Treatment Trust:
5.90%, 5/01/2003 (Insured; MBIA) (Prerefunded 5/1/2002) 1,400,000 (a) 1,481,592
Loan Revenue:
6.30%, 7/1/2005 50,000 52,578
6.30%, 7/1/2005 (Prerefunded 7/1/2001) 3,545,000 (a) 3,740,436
North Brunswick Township 6.30%, 5/15/2006
(Prerefunded 5/15/2002) 1,860,000 (a) 1,976,436
North Hudson Sewer Authority, Sewer Revenue
5.25%, 8/1/2010 (Insured; FGIC) 3,825,000 3,863,786
North Jersey District Water Supply Commission, Revenue
(Wanaque South Project) 5.40%, 7/1/2002 (Insured; MBIA) 2,795,000 2,879,297
Northeast Monmouth County Regional Sewer Authority,
Sewer Revenue
5%, 11/1/2010 (Insured; MBIA) 2,250,000 2,235,735
Ocean County, General Improvement:
5.30%, 9/1/2003 2,115,000 2,186,995
5.125%, 7/1/2004 1,000,000 1,027,050
5.65%, 7/1/2005 1,600,000 1,686,832
4.50%, 12/1/2009 1,225,000 1,176,086
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
Parsippany--Troy Hills Township 6%, 4/1/2004 1,630,000 1,731,044
Passaic County Utilities Authority, SWDR:
5%, 3/1/2007 1,300,000 1,297,959
5%, 3/1/2008 1,195,000 1,184,843
City of Perth Amboy Board of Education, COP,
Lease Purchase Agreement
(FWB Leasecorp,Inc.) 5.60%, 12/15/2002 (Insured; FSA) 1,265,000 1,316,587
Pinelands Regional Board of Education, COP,
Lease Purchase Agreement
(A & R Hunt Enterprises, Inc.) 5.70%, 2/15/2003
(Insured; FSA) 350,000 364,609
Port Authority of New York and New Jersey,
(Consolidated Board 101st Series)
5.25%, 9/15/2006 (Insured; MBIA) 1,000,000 1,025,440
Township of Roxbury, Water and Sewer Assessment
5.05%, 8/1/2004 (Insured; AMBAC) 1,175,000 1,206,079
Rutgers State University, University Revenue
(State University of New Jersey) 6.30%, 5/1/2005 2,900,000 3,079,858
South Jersey Port Corp., Marine Terminal Revenue:
5.05%, 1/1/2003 835,000 841,780
5.30%, 1/1/2005 930,000 942,462
5.40%, 1/1/2006 1,010,000 1,022,564
South Jersey Transportation Authority,
Transportation System Revenue
5.50%, 11/1/2002 (Insured; MBIA) 2,000,000 2,072,980
South River School District 5%, 12/1/2008 (Insured; FGIC) 1,100,000 1,112,430
Southern Regional High School District
5.50%, 9/1/2011 (Insured; MBIA) 1,600,000 1,634,512
Sussex County Municipal Utilities Authority,
Wastewater Facilities Revenue
5%, 12/1/2003 (Insured; MBIA) 1,755,000 1,785,449
Warren County Pollution Control Financing Authority,
Landfill Revenue
5.60%, 12/1/2002 1,765,000 1,718,157
Washington Township Board of Education
5.10%, 2/1/2007 (Insured; MBIA) 3,100,000 3,167,301
West Deptford Township 5.20%, 3/1/2011 (Insured; AMBAC) 2,000,000 2,009,520
West Morris Regional High School District
Board of Education, School
5.875%, 1/15/2004 250,000 263,610
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
West Windsor Township, General Improvement:
5.70%, 10/15/2002 600,000 617,370
5.90%, 10/15/2003 600,000 618,582
West Windsor-Plainsboro Regional Board of Education COP,
Lease Purchase Agreement (Lamington Funding Corp.)
5.50%, 3/15/2003 (Insured; MBIA) 1,115,000 1,153,746
Western Monmouth Utilities Authority, Revenue
5.15%, 2/1/2008 (Insured; AMBAC) 1,000,000 1,016,720
Woodbridge Township:
5.65%, 8/15/2002 1,320,000 1,366,741
6.20%, 8/15/2007 2,000,000 2,138,880
U.S. RELATED--6.3%
Commonwealth of Puerto Rico, Improvement
5.30%, 7/1/2004 (Insured; MBIA) 8,000,000 8,341,760
Virgin Islands, Subordinated Special Tax
(Insurance Claims Fund Program/ GO Matching Fund)
5.65%, 10/1/2003 (Prerefunded 10/1/2001) 2,480,000 (a) 2,543,189
Virgin Islands Public Finance Authority, Revenue
(Matching Fund Loan Notes):
7%, 10/1/2002 250,000 271,244
5.50%, 10/1/2008 1,500,000 1,510,574
Virgin Islands Water and Power Authority, Water System Revenue
7.20%, 1/1/2002 200,000 207,301
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $195,396,645) 199,350,891
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SHORT-TERM MUNICIPAL INVESTMENTS--.5%
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NEW JERSEY;
Port Authority of New York and New Jersey, Special Obligation Revenue,
VRDN 3.20% (SBPA; Landesbank Hessen-Thurgen)
(cost $1,000,000) 1,000,000 (b) 1,000,000
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TOTAL INVESTMENTS
(cost $196,396,645) 98.0% 200,350,891
CASH AND RECEIVABLES (NET) 2.0% 4,020,083
NET ASSETS 100.0% 204,370,974
The Fund
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
AMBAC American Municipal Bond MBIA Municipal Bond Investors
Assurance Corporation Assurance Insurance Corporation
COP Certificate of Participation SBPA Standby Bond
FGIC Financial Guaranty Insurance Company Purchase Agreement
FSA Financial Security Assurance SWDR Solid Waste Disposal Revenue
GO General Obligation VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 61.1
AA Aa AA 15.6
A A A 11.5
BBB Baa BBB 6.5
B B B .8
F1 Mig1 SP1 .5
Not Rated(c) Not Rated(c) Not Rated(c) 4.0
100.0
</TABLE>
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT SECURITIES
WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST ON THE
MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING DATE.
(B) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE-SUBJECT TO PERIODIC
CHANGE.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILTIES
September 30, 1999 (Unaudited)
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 196,396,645 200,350,891
Cash 1,293,227
Interest receivable 2,908,537
Prepaid expenses 4,248
204,556,903
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 106,015
Payable for shares of Beneficial Interest redeemed 41,157
Accrued expenses 38,757
185,929
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NET ASSETS ($) 204,370,974
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 204,400,723
Accumulated net realized gain (loss) on investments (3,983,995)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 3,954,246
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NET ASSETS ($) 204,370,974
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
15,163,024
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
13.48
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1999 (Unaudited)
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INVESTMENT INCOME ($):
INTEREST INCOME 5,364,855
EXPENSES:
Management fee--Note 3(a) 628,297
Shareholder servicing costs--Note 3(b) 174,393
Professional fees 17,546
Custodian fees 11,060
Trustees' fees and expenses--Note 3(c) 10,978
Prospectus and shareholders' reports 7,934
Registration fees 1,930
Loan commitment fees--Note 2 459
Miscellaneous 12,310
TOTAL EXPENSES 864,907
Less--reduction in management fee due to
undertaking--Note 3(a) (39,139)
NET EXPENSES 825,768
INVESTMENT INCOME--NET 4,539,087
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (233,608)
Net unrealized appreciation (depreciation) on investments (6,626,264)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (6,859,872)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (2,320,785)
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 1999 Year Ended
(Unaudited) March 31, 1999
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OPERATIONS ($):
Investment income--net 4,539,087 9,104,364
Net realized gain (loss) on investments (233,608) 781,232
Net unrealized appreciation (depreciation)
on investments (6,626,264) 765,583
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS (2,320,785) 10,651,179
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (4,539,087) (9,104,364)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 16,504,086 33,844,941
Dividends reinvested 3,829,883 7,659,276
Cost of shares redeemed (26,769,510) (41,227,453)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (6,435,541) 276,764
TOTAL INCREASE (DECREASE) IN NET ASSETS (13,295,413) 1,823,579
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 217,666,387 215,842,808
END OF PERIOD 204,370,974 217,666,387
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,207,880 2,430,570
Shares issued for dividends reinvested 280,837 549,536
Shares redeemed (1,955,774) (2,961,601)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (467,057) 18,505
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>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Six Months Ended
September 30, 1999 Year Ended March 31,
------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.93 13.83 13.35 13.44 13.12 13.08
Investment Operations:
Investment income--net .30 .59 .59 .59 .60 .65
Net realized and unrealized
gain (loss) on investments (.45) .10 .48 (.08) .32 .04
Total from Investment Operations (.15) .69 1.07 .51 .92 .69
Distributions:
Dividends from investment
income--net (.30) (.59) (.59) (.60) (.60) (.65)
Net asset value, end of period 13.48 13.93 13.83 13.35 13.44 13.12
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (2.21) (a) 5.04 8.18 3.84 7.09 5.45
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .79 (a) .80 .78 .78 .72 .45
Ratio of net investment income
to average net assets 4.32 (a) 4.21 4.34 4.43 4.47 5.02
Decrease reflected in above
expense ratios due to
undertakings by the Manager .04 (a) .04 .03 -- .06 .45
Portfolio Turnover Rate 6.95 (b) 18.81 6.90 14.60 13.69 35.01
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 204,371 217,666 215,843 216,350 229,034 221,199
(A) ANNUALIZED.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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, 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 New Jersey state 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 The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 $3,081 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 has an unused capital loss carryover of approximately $3,750,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to March 31, 1999. If not
applied, $1,289,000 of the carryover expires in fiscal 2003 and $2,461,000
expires in fiscal 2004.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (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 $39,139, during the period ended September 30, 1999.
(B) Under the 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 The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 $107,595 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 $45,917 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 $250 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 the use of the fund' s Exchange privilege. During the period ended
September 30, 1999, redemption fees retained by the fund 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, 1999, amounted to
$14,127,864 and $19,263,579, respectively.
At September 30, 1999, accumulated net unrealized appreciation on investments
was $3,954,246, consisting of $4,725,043 gross unrealized appreciation and
$770,797 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).
For More Information
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
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 751SA999
