LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to present you with the first semi-annual report of the
Dreyfus Pennsylvania Intermediate Municipal Bond Fund. This report covers the
period from the Fund's inception on December 16, 1993 through May 31, 1994.
The initial net asset value of the Fund was $12.50. For the period ended May
31, 1994, the net asset value for the Fund was $12.53. For this time period,
income dividends of approximately $.27 per share were paid. This translates
into an annualized distribution rate of 4.79% per share, based on the closing
net asset value on May 31. All interest income generated by the Fund was
exempt from Federal and State income taxes.*
It appears that 1994 will be remembered as the end of five years of
accommodative Federal Reserve Board Policy. Since February, the Federal Funds
rate has been raised four times. Generally, it is anticipated that further
rate hikes will be forthcoming should the economy continue to signal an
unacceptable rate of growth; with such a heightened degree of nervousness
influencing both bonds and stocks, the markets could remain volatile.
Higher bond yields have had an effect on the supply of new municipal
bonds: 1993 was a record year for bond issuance, but new issuance has fallen
dramatically this year. At the same time, the appetite of individual
investors for tax exempt investments has been tempered. However, should
inflation concerns subside and interest rates stabilize, attractive
investment opportunities could emerge in municipal securities: new issuance
has been reduced, the highest marginal Federal tax rate has been increased to
nearly 40%, and municipal bonds are yielding substantially more than they
were only a few months ago. However, at this juncture, it is still uncertain
as to if and when such a scenario may unfold.
During the start-up period, we took a cautious approach to the Fund's
investments since we were concerned about the volatility in the market and
rising interest rates. Rather than chase an already expensive market, we
opted to maintain a larger than usual cash reserve during the first quarter
and shortened the Fund's average life. It appears now that the worst part of
the retrenchment may have passed and, if so, current levels would present an
attractive buying opportunity.
As we have witnessed in recent weeks, negative influences on the markets
can be quite powerful. The potential still exists for further market
volatility and higher yields before bond prices begin to rise again. We want
to assure you that we are at all times working in the Fund's best interest,
and we appreciate your investment in the Fund.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
President
July 1, 1994
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
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DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS MAY 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS--84.2% AMOUNT VALUE
------------- -------------
<S> <C> <C>
PENNSYLVANIA--78.1%
Allegheny County Hospital Development Authority, Revenue, Refunding
(Magee Womens Hospital) 5.875%, 10/1/2002 (Insured; FGIC)............... $ 500,000 $ 521,515
Berks County, GO 5.60%, 11/15/2007.......................................... 545,000 540,918
Bucks County 6.05%, 3/1/2002................................................ 500,000 531,030
Chester County Health and Educational Facilities Authority (Main Line Health System):
4.90%, 5/15/2004........................................................ 350,000 321,472
5.40%, 5/15/2009........................................................ 500,000 451,270
Clinton County Industrial Development Authority, PCR, Refunding
(International Paper Co. Project) 5.375%, 5/1/2004...................... 500,000 489,270
Dauphin County, General Authority, Variable Rate Demand Revenue Bond
6%, 12/1/2006........................................................... 785,000 785,000
Delaware County Authority, HR (Crozer-Chester Medical Center)
4.75%, 12/15/2003 (Insured; MBIA)....................................... 430,000 405,993
Delaware County Industrial Development Authority, Revenue, Refunding
(Martins Run Project) 5.60%, 12/15/2002................................. 750,000 716,347
Harrisburg Water Authority, Revenue 5.30%, 7/15/2004 (Insured; FGIC)........ 300,000 298,239
Lackawanna County, Refunding 4.90%, 12/1/2006 (Insured; AMBAC).............. 500,000 466,275
Lancaster Higher Educational Authority, College Revenue
(Franklin & Marshall College Project) 5%, 4/15/2002 (Insured; MBIA)..... 350,000 346,167
Lebanon County Hospital Authority, Revenue (Good Samaritan Hospital Project)
6%, 11/15/2009.......................................................... 500,000 465,990
Lehigh County General Purpose Authority, Revenue (Saint Lukes Hospital Project)
4.75%, 11/15/2000 (Insured; AMBAC)...................................... 345,000 337,306
Northeastern Hospital and Education Authority, University Revenue, Refunding
(Wilkes University) 5.60%, 10/1/2005.................................... 200,000 192,500
Pennsylvania, GO 5%, 9/1/2007............................................... 350,000 327,089
Pennsylvania Economic Development Financing Authority, RRR
(Northampton Generating Project) 6.40%, 1/1/2009........................ 500,000 485,075
Pennsylvania Higher Educational Facilities Authority, Health Services Revenue
(University of Pennsylvania) 5.75%, 1/1/2006............................ 500,000 494,150
Pennsylvania Housing Finance Agency, Single Family Mortgage:
5.95%, 10/1/2003........................................................ 365,000 366,778
6.20%, 4/1/2005......................................................... 410,000 411,882
6.20%, 10/1/2005........................................................ 420,000 421,991
Pennsylvania Turnpike Commission, Turnpike Revenue, Refunding:
5.35%, 12/1/2002 (Insured; FGIC) ....................................... 255,000 258,300
5.45%, 12/1/2002........................................................ 500,000 504,055
Philadelphia, Revenue:
Gas Works 4.60%, 8/1/2003 (Insured; MBIA)............................... 500,000 464,830
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------- -------------
PENNSYLVANIA (CONTINUED)
Philadelphia, Revenue (continued):
Hospital And Higher Education Facilities Authority:
(Community College) 5.90%, 5/1/2007................................... $ 445,000 $ 447,243
(Graduate Health Systems) 5.10%, 7/1/1998............................. 350,000 346,143
School District 5.75%, 7/1/2007 (Insured; MBIA)......................... 600,000 601,056
Water and Wastewater, Refunding:
4.25%, 6/15/1996...................................................... 500,000 500,190
5.50%, 6/15/2006...................................................... 250,000 243,167
Philadelphia Municipal Authority, LR, Refunding:
6%, 7/15/2003........................................................... 500,000 493,065
(Criminal Justice Purpose) 5.40%, 11/15/2006 (Insured; FGIC)............ 500,000 491,980
Pittsburgh GO, Refunding 4.70%, 9/1/2001 (Insured; AMBAC)................... 250,000 242,950
Pittsburgh Water and Sewer Authority, Water and Sewer Systems Revenue
4.70%, 9/1/2004 (Insured; FGIC)......................................... 300,000 280,020
Scranton-Lackawanna Health and Welfare Authority, Revenue
(University of Scranton Project) 5.80%, 3/1/2000........................ 500,000 503,115
Wilkinsburg Joint Water Authority, Water Revenue 6.15%, 8/15/2009
(Prerefunded 8/15/2002)(a).............................................. 500,000 533,760
U.S. RELATED--6.1%
Puerto Rico, GO 5.40%, 7/1/2003............................................. 200,000 199,838
Puerto Rico Electric Power Revenue, Refunding:
5.90%, 7/1/2002......................................................... 250,000 257,973
6%, 7/1/2006............................................................ 225,000 227,504
Puerto Rico Highway and Transportation Authority, Highway Revenue, Refunding
5%, 7/1/2002............................................................ 225,000 219,222
Puerto Rico Housing Bank and Finance Agency, Single Family, Refunding
5%, 12/1/2002........................................................... 300,000 285,891
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TOTAL MUNICIPAL BONDS (cost $16,808,631).................................... $16,476,559
=============
SHORT-TERM MUNICIPAL INVESTMENTS--15.8%
PENNSYLVANIA:
Bucks County Industrial Development Authority, VRDN (Oxford Falls)
3.25% (Guaranteed; Household Finance Corp.)(b).......................... $ 300,000 $ 300,000
Pennsylvania Energy Development Authority, Energy Development Revenue, VRDN
(B & W Ebensburg Project) 2.95% (LOC; Swiss Bank Corp.)(b,c)............ 300,000 300,000
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue, VRDN
2.80% (LOC; Union Bank of Switzerland)(b,c)............................. 500,000 500,000
Schuylkill Industrial Development Authority, RRR, VRDN
(Northeastern Power Co, Project):
3.20% (LOC; Sumitomo Bank)(b,c)....................................... 1,800,000 1,800,000
3.25% (LOC; Sumitomo Bank)(b,c)....................................... 200,000 200,000
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TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $3,100,000).................... $ 3,100,000
=============
TOTAL INVESTMENTS--100.0% (cost $19,908,631)................................ $19,576,559
=============
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DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
FGIC Financial Guaranty Insurance Corporation MBIA Municipal Bond Insurance Association
GO General Obligation PCR Pollution Control Revenue
HR Hospital Revenue RRR Resources Recovery Revenue
LOC Letter of Credit VRDN Variable Rate Demand Notes
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SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
AAA Aaa AAA 31.9%
AA Aa AA 17.0
A A A 16.3
BBB Baa BBB 10.4
BB Ba BB 2.5
F1 P1 A1 15.8
Not Rated Not Rated Not Rated 6.1
--------
100.0%
=======
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NOTES TO STATEMENT OF INVESTMENTS:
(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 tax-exempt issue and to retire the bonds in full at the
earliest refunding date.
(b) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(c) Secured by letters of credit.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
See notes to financial statements.
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DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1994 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $19,908,631)_see statement...................................... $19,576,559
Cash.................................................................... 315,322
Interest receivable..................................................... 228,733
Prepaid expenses and other assets_Note 1(e)............................. 53,333
Due from The Dreyfus Corporation........................................ 54,923
-------------
20,228,870
LIABILITIES:
Payable for investment securities purchased............................. $1,593,948
Accrued expenses and other liabilities.................................. 49,941 1,643,889
------------ -------------
NET ASSETS ................................................................ $18,584,981
=============
REPRESENTED BY:
Paid-in capital......................................................... $18,921,775
Accumulated net realized (loss) on investments.......................... (4,722)
Accumulated net unrealized (depreciation) on investments_Note 3......... (332,072)
-------------
NET ASSETS at value applicable to 1,483,478 outstanding shares of
Beneficial Interest, equivalent to $12.53 per share
(unlimited number of $.001 par value shares authorized)................. $18,584,981
=============
STATEMENT OF OPERATIONS
FROM DECEMBER 16, 1993 (COMMENCEMENT OF OPERATIONS) TO MAY 31, 1994 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 208,537
EXPENSES:
Management fee--Note 2(a)............................................. $ 26,667
Shareholder servicing costs_Note 2(b)................................. 12,843
Auditing fees......................................................... 10,004
Registration fees..................................................... 9,932
Legal fees............................................................ 8,000
Shareholders' reports................................................. 6,100
Trustees' fees and expenses_Note 2(c)................................. 6,000
Organization expenses_Note 1(e)....................................... 5,537
Custodian fees........................................................ 1,226
Miscellaneous......................................................... 2,500
------------
88,809
Less_expense reimbursement from Manager due to
undertaking_Note 2(a)............................................. 88,809
------------
TOTAL EXPENSES.................................................. __
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INVESTMENT INCOME--NET.......................................... 208,537
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments--Note 3.............................. $ (4,722)
Net unrealized (depreciation) on investments............................ (332,072)
------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (336,794)
-------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (128,257)
=============
See notes to financial statements.
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DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
FROM DECEMBER 16, 1993 (COMMENCEMENT OF OPERATIONS) TO MAY 31, 1994 (UNAUDITED)
OPERATIONS:
<S> <C>
Investment income--net....................................................................... $ 208,537
Net realized (loss) on investments........................................................... (4,722)
Net unrealized (depreciation) on investments for the period.................................. (332,072)
-------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................................... (128,257)
-------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net....................................................................... (208,537)
-------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold................................................................ 21,074,284
Dividends reinvested......................................................................... 169,610
Cost of shares redeemed...................................................................... (2,422,119)
-------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS............................... 18,821,775
-------------
TOTAL INCREASE IN NET ASSETS........................................................... 18,484,981
NET ASSETS:
Beginning of period--Note 1.................................................................. 100,000
-------------
End of period................................................................................ $18,584,981
=============
SHARES
-------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.................................................................................. 1,655,168
Shares issued for dividends reinvested....................................................... 13,511
Shares reedeemed............................................................................. (193,201)
-------------
NET INCREASE IN SHARES OUTSTANDING......................................................... 1,475,478
============
See notes to financial statements.
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DREYFUS PENNSYLVANIA 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 the period December 16, 1993
(commencement of operations) to May 31, 1994. This information has been
derived from the Fund's financial statements.
PER SHARE DATA:
<S> <C>
Net asset value, beginning of period......................................................... $12.50
-------
INVESTMENT OPERATIONS:
Investment income--net....................................................................... .27
Net realized and unrealized gain on investments.............................................. .03
-------
TOTAL FROM INVESTMENT OPERATIONS........................................................... .30
-------
DISTRIBUTIONS;
Dividends from investment income--net........................................................ (.27)
-------
Net asset value, end of period............................................................... $12.53
=======
TOTAL INVESTMENT RETURN (1) 5.29%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...................................................... --
Ratio of net investment income to average net assets (1)..................................... 4.69%
Decrease reflected in above expense ratio due to
undertaking by the Manager (1)............................................................. 2.00%
Portfolio Turnover Rate (2).................................................................. 3.87%
Net Assets, end of period (000's Omitted).................................................... $18,585
- -------------------
(1) Annualized.
(2) Not annualized.
See notes to financial statements.
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DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Pennsylvania Intermediate Municipal Bond Fund (the "Fund") was
organized as a Massachusetts business trust on March 12, 1992, and had no
operations until December 16, 1993 (commencement of operations) other than
matters relating to its organization and registered as a non-diversified
open-end management investment company under the Investment Company Act of
1940 ("Act") and the Securities Act of 1933 and the sale and issuance of
8,000 shares of Beneficial Interest ("Initial Shares") to The Dreyfus
Corporation ("Manager"). Dreyfus Service Corporation ("Distributor") acts as
the exclusive distributor of the Fund's shares, which are sold to the public
without a sales charge. The Distributor is a wholly-owned subsidiary of the
Manager. As of May 31, 1994, the Manager held 287,909 shares. The Fund's
fiscal year ends on November 30.
(A) PORTFOLIO VALUATION: The Fund's investments 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.
(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, when appropriate,
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 , if any, 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, if any, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to qualify as a
regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable 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 taxes.
(E) OTHER: Organization expenses paid by the Fund are included in prepaid
expenses and are being amortized to operations from December 16, 1993, the
date operations commenced, over the period during which it is expected that a
benefit will be realized, not to exceed five years. At May 31, 1994, the
unamortized balance of such expenses amounted to $49,833. In the event that
any of the Initial Shares are redeemed during the amortization period, the
redemption proceeds will be reduced by any unamortized organization expenses
in the same proportion as the number of such shares being redeemed bears to
the number of such shares outstanding at the time of such redemption.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. However, the Manager had
undertaken, from December 16, 1993 through September 30, 1994, or until such
time as the net assets of the Fund exceed $50 million, regardless of whether
they remain at that level, to reimburse all fees and expenses of the Fund.
The expense reimbursement, pursuant to the undertaking, amounted to $88,809
for the period ended May 31, 1994.
The undertaking may be modified by the Manager from time to time,
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
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 servicing 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 May 31, 1994,
the Fund was charged an aggregate of $7,220 pursuant to the Shareholder
Services Plan.
(C) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each trustee
who is not an "affiliated person" receives an annual fee of $1,000 and an
attendance fee of $250 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and Plan
of Merger (the "Merger Agreement") providing for the merger of the Manager
with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number
of contingencies, including receipt of certain regulatory approvals and
approvals of the stockholders of the Manager and of Mellon. The merger is
expected to occur in August 1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's
shareholders before completion of the merger. Proxy materials, approved by
the Fund's Board, recently have been mailed to Fund shareholders.
NOTE 3--SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $24,720,292 and $4,803,393,
respectively, for the period ended May 31, 1994, and consisted entirely of
municipal bonds and short-term municipal investments.
At May 31, 1994, accumulated net unrealized depreciation on investments
was $332,072, consisting of $61,917 gross unrealized appreciation and
$393,989 gross unrealized depreciation.
At May 31, 1994, 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 Logo)
Pennsylvania
Intermediate
Municipal
Bond Fund
Semi-Annual
Report
May 31, 1994
(Dreyfus Lion Logo)
(Dreyfus `D' Logo)
DREYFUS PENNSYLVANIA INTERMEDIATE
MUNICIPAL BOND FUND
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 105SA945
Registration Mark
