LETTER TO SHAREHOLDERS
Dear Shareholder:
When your Fund ended its fiscal year on November 30, 1994, the Fund
closed with a net asset value of $11.84, a decrease of $.69 from the net
asset value reported in our semi-annual letter of May 31, 1994. Since
inception on December 16, 1993, income dividends of approximately $.61 per
share were paid, which translates into an annualized distribution rate per
share of 5.35%, based on the November 30, 1994 closing net asset value. As
has been true from the Fund's inception, all dividend income paid to you has
been exempt from Federal and State income taxes.*
During 1994, the bond markets have been affected by a strengthening
economy, fears of rising inflation and a weakening U.S. dollar. As a result
of these influences, interest rates have risen much faster this year than
most economists had anticipated. Prices of municipal bonds reached their low
points early in the second quarter, staged a modest rebound this summer, and
began sliding again through early December. In recent weeks, the market has
stabilized and rates have trended downward.
The Federal Reserve Board has tightened the Federal Funds rate six times
this year (for a 250 basis point increase overall). As of yet, we have not
seen the effect of the tightening and the economic data continues to reflect
a growing economy. We do not believe that the Fed is finished, and we
anticipate further action during the first quarter of 1995. Along with
inflation concerns, the potential inability of the Administration to function
in the new congressional environment could make investors, both foreign and
domestic, very wary.
We continue to be very cautious in our investment strategy. It had been
anticipated that the Fed's tightening policy would have translated into more
favorable economic news for the markets by this time. It still is unclear how
much further the Fed may go before the effects of its rate increases are
felt. The municipal market does have several positive factors working to its
advantage (i.e., adequate retail demand for tax exempt securities, combined
with a sharp reduction in the supply of new issues this year), and while we
view the municipal market more favorably today than we have in months, we are
wary of the strong influence exerted on it by the price volatility of taxable
securities.
After enjoying a number of years of strong market performance, it is
unsettling, to say the least, to be faced with such an uncertain environment.
Most of the year has been a series of trading cycles with the market
stabilizing, moving up, and then falling back to cheaper levels. We attempted
to use this to our advantage by selling selectively during those periods of
strength.
There are two fundamental requirements for investing in a municipal bond
fund such as this one: a desire for a tax exempt income and a long-term
horizon. While the financial press focuses our attention on short-term market
swings, investors in this Fund need to maintain a longer perspective because
focusing too intently on short-term results can be detrimental. We continue
to direct our management efforts to provide a high level of tax exempt income
and to deliver strong long-term performance results. We trust that our
philosophy is in concert with yours.
Very truly yours,
(logo signature)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
December 23, 1994
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
<TABLE>
<CAPTION>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS NOVEMBER 30, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS_94.7% AMOUNT VALUE
----------- -----------
<S> <C> <C>
PENNSYLVANIA_89.8%
Allegheny County Hospital Development Authority, Revenue, Refunding
(Magee Womens Hospital) 5.875%, 10/1/2002 (Insured; FGIC)............... $ 500,000 $ 494,550
Berks County, GO 5.60%, 11/15/2007.......................................... 545,000 496,233
Bucks County 6.05%, 3/1/2002................................................ 500,000 506,965
Chester County Health and Educational Facilities Authority (Main Line Health
System):
4.90%, 5/15/2004........................................................ 350,000 303,485
5.40%, 5/15/2009........................................................ 500,000 425,935
Clinton County Industrial Development Authority, PCR, Refunding
(International Paper Co. Project) 5.375%, 5/1/2004...................... 500,000 460,475
Dauphin County General Authority, Revenue:
6%, 12/1/2006........................................................... 785,000 762,149
5%, 6/1/2026 (a)........................................................ 500,000 486,585
Delaware County Authority, HR (Crozer-Chester Medical Center)
4.75%, 12/15/2003 (Insured; MBIA)....................................... 430,000 374,599
Delaware County Industrial Development Authority, Revenue, Refunding
(Martins Run Project) 5.60%, 12/15/2002................................. 750,000 678,518
Harrisburg Water Authority, Revenue 5.30%, 7/15/2004 (Insured; FGIC)........ 300,000 275,925
Lackawanna County, Refunding 4.90%, 12/1/2006 (Insured; AMBAC).............. 500,000 420,175
Lancaster Higher Educational Authority, College Revenue
(Franklin & Marshall College Project) 5%, 4/15/2002 (Insured; MBIA)..... 350,000 324,044
Lehigh County General Purpose Authority, Revenue (Saint Lukes Hospital
Project)
4.75%, 11/15/2000 (Insured; AMBAC)...................................... 345,000 317,555
Northeastern Hospital and Education Authority, University Revenue, Refunding
(Wilkes University) 5.60%, 10/1/2005.................................... 200,000 177,148
Pennsylvania Convention Center Authority, Revenue, Refunding 6.25%, 9/1/2004 750,000 724,672
Pennsylvania Economic Development Financing Authority, RRR
(Northampton Generating Project) 6.40%, 1/1/2009........................ 500,000 441,140
Pennsylvania, GO:
5%, 5/1/2003............................................................ 500,000 453,735
5%, 9/1/2007............................................................ 350,000 295,214
Pennsylvania Higher Educational Facilities Authority:
College and Universities Revenue (Delaware Valley College of Science and
Agriculture)
6.50%, 4/1/2008....................................................... 790,000 760,644
Health Services Revenue (University of Pennsylvania) 5.75%, 1/1/2006.... 500,000 467,290
Pennsylvania Housing Finance Agency, Single Family Mortgage:
5.95%, 10/1/2003........................................................ 365,000 354,605
6.20%, 4/1/2005......................................................... 410,000 393,071
6.20%, 10/1/2005........................................................ 420,000 402,087
6.10%, 4/1/2006......................................................... 455,000 437,692
6.10%, 10/1/2006........................................................ 465,000 446,791
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
----------- -----------
PENNSYLVANIA (CONTINUED)
Pennsylvania Turnpike Commission, Turnpike Revenue, Refunding:
5.35%, 12/1/2002 (Insured; FGIC)........................................ $ 255,000 $ 242,564
5.45%, 12/1/2002........................................................ 500,000 473,300
Philadelphia, GO 5.70%, 11/15/2006 (Insured; FGIC) (b)...................... 1,000,000 916,260
Philadelphia, Revenue:
Gas Works 4.60%, 8/1/2003 (Insured; MBIA)............................... 500,000 430,560
Hospital And Higher Education Facilities Authority:
(Community College) 5.90%, 5/1/2007................................... 445,000 423,542
(Graduate Health Systems) 5.10%, 7/1/1998............................. 350,000 335,195
(Temple University) 6.50%, 11/15/2008................................. 1,000,000 918,370
School District 5.75%, 7/1/2007 (Insured; MBIA)......................... 600,000 552,000
Water and Wastewater, Refunding:
4.25%, 6/15/1996...................................................... 500,000 491,800
5.50%, 6/15/2003...................................................... 1,000,000 938,310
5.50%, 6/15/2006...................................................... 250,000 220,450
Philadelphia Municipal Authority, LR, Refunding:
6%, 7/15/2003........................................................... 500,000 481,380
(Criminal Justice Purpose) 5.40%, 11/15/2006 (Insured; FGIC)............ 500,000 452,810
Pittsburgh, GO, Refunding 4.70%, 9/1/2001 (Insured; AMBAC).................. 250,000 227,477
Pittsburgh Water and Sewer Authority, Water and Sewer Systems Revenue
4.70%, 9/1/2004 (Insured; FGIC)......................................... 300,000 256,929
Schuylkill County Industrial Development Authority, RRR, Refunding
(Schuylkill Energy Resource) 6.50%, 1/1/2010............................ 300,000 264,285
Scranton-Lackawanna Health and Welfare Authority, Revenue
(University of Scranton Project) 5.80%, 3/1/2000........................ 500,000 484,790
Wilkinsburg Joint Water Authority, Water Revenue
6.15%, 8/15/2009 (Prerefunded 8/15/2002)(c)............................. 500,000 506,360
U.S. RELATED_4.9%
Puerto Rico, GO 5.40%, 7/1/2003............................................. 200,000 185,440
Puerto Rico, Electric Power Revenue, Refunding:
5.90%, 7/1/2002......................................................... 250,000 246,435
6%, 7/1/2006............................................................ 225,000 214,517
Puerto Rico Highway and Transportation Authority, Highway Revenue, Refunding
5%, 7/1/2002............................................................ 225,000 203,864
Puerto Rico Housing Bank and Finance Agency, Single Family, Refunding 5%, 12/1/2002 300,000 267,531
----------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $22,986,754).................... $21,415,451
===========
SHORT-TERM MUNICIPAL INVESTMENTS_5.3%
PENNSYLVANIA:
Allegheny County Higher Education Building Authority, VRDN
(University of Pittsburgh Project) 3.52% (LOC; Union Bank of Switzerland) (d,e) $ 300,000 $ 300,000
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1994
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
----------- -----------
PENNSYLVANIA (CONTINUED):
Bucks County Industrial Development Authority, VRDN (Oxford Falls)
4.12% (Guaranteed; Household Finance Corp.)(d).......................... $ 200,000 $ 200,000
Warren County Hospital Authority, VRDN (Warren General Hospital Authority)
3.80% (LOC; PNC Bank) (d,e)............................................. 700,000 700,000
----------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $1,200,000).................... $ 1,200,000
===========
TOTAL INVESTMENTS_100.0% (cost $24,186,754)................................ $22,615,451
===========
</TABLE>
<TABLE>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
FGIC Federal Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
GO General Obligation PCR Pollution Control Revenue
HR Hospital Revenue RRR Resources Recovery Revenue
LOC Letter of Credit VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- -------- ---------------- ------------------
<S> <C> <C> <C>
AAA Aaa AAA 36.0%
AA Aa AA 19.8
A A A 13.4
BBB Baa BBB 15.2
BB Ba BB 5.3
F1 P1 A1 5.3
Not Rated (g) Not Rated (g) Not Rated (g) 5.0
-----
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Purchased on delayed delivery basis.
(b) Wholly held by the custodian in a segregated account as collateral
for delayed delivery securities.
(c) 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.
(d) 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.
(e) Secured by letters of credit.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Fund's Board of Trustees to be of
comparable quality to those rated securities in which the Fund may
invest.
See notes to financial statements.
<TABLE>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $24,186,754)_see statement...................................... $22,615,451
Cash.................................................................... 11,875
Interest receivable..................................................... 364,373
Prepaid expenses and other assets_Note 1(e)............................. 49,239
Due from The Dreyfus Corporation........................................ 122,875
-----------
23,163,813
LIABILITIES:
Payable for investment securities purchased............................. $499,375
Accrued expenses and other liabilities.................................. 65,445 564,820
-----------
NET ASSETS ................................................................ $22,598,993
===========
REPRESENTED BY:
Paid-in capital......................................................... $24,277,626
Accumulated net realized (loss) on investments.......................... (107,330)
Accumulated gross unrealized (depreciation) on investments.............. (1,571,303)
-----------
NET ASSETS at value applicable to 1,909,451 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $22,598,993
============
NET ASSET VALUE, offering and redemption price per share
($22,598,993 / 1,909,451 shares)........................................ $11.84
======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS
FROM DECEMBER 16, 1993 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 806,326
EXPENSES:
Management fee_Note 2(a).............................................. $ 93,306
Shareholder servicing costs_Note 2(b)................................. 29,631
Auditing fees......................................................... 20,061
Registration fees..................................................... 15,847
Trustees' fees and expenses_Note 2(c)................................. 12,982
Legal fees............................................................ 12,973
Organization expenses_Note 1(e)....................................... 11,074
Prospectus and shareholders' reports.................................. 10,551
Custodian fees........................................................ 3,185
Miscellaneous......................................................... 6,571
-----------
216,181
Less_expense reimbursement from Manager due to
undertaking_Note 2(a)............................................. 216,181
-----------
TOTAL EXPENSES.................................................. --
------------
INVESTMENT INCOME_NET.......................................... 806,326
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments_Note 3............................... $ (107,330)
Net unrealized (depreciation) on investments............................ (1,571,303)
-----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (1,678,633)
------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (872,307)
=============
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
FROM DECEMBER 16, 1993 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1994
<S> <C> <C>
OPERATIONS:
Investment income_net............................................................... $ 806,326
Net realized (loss) on investments.................................................. (107,330)
Net unrealized (depreciation) on investments for the period......................... (1,571,303)
--------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............................ (872,307)
--------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income_net............................................................... (806,326)
--------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold....................................................... 35,130,538
Dividends reinvested................................................................ 590,723
Cost of shares redeemed............................................................. (11,543,635)
--------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS...................... 24,177,626
--------------
TOTAL INCREASE IN NET ASSETS.................................................. 22,498,993
NET ASSETS:
Beginning of period_Note 1.......................................................... 100,000
--------------
End of period....................................................................... $ 22,598,993
============
SHARES
--------------
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................................... 2,782,274
Shares issued for dividends reinvested.............................................. 47,728
Shares redeemed..................................................................... (928,551)
--------------
NET INCREASE IN SHARES OUTSTANDING................................................ 1,901,451
============
See notes to financial statements.
</TABLE>
<TABLE>
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 November 30, 1994. This information has been
derived from the Fund's financial statements.
<S> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period..................................................... $12.50
------
INVESTMENT OPERATIONS:
Investment income_net.................................................................... .61
Net realized and unrealized (loss) on investments........................................ (.66)
------
TOTAL FROM INVESTMENT OPERATIONS....................................................... (.05)
------
DISTRIBUTIONS;
Dividends from investment income_net..................................................... (.61)
------
Net asset value, end of period........................................................... $11.84
======
TOTAL INVESTMENT RETURN (1) (.60%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................................................. ._
Ratio of net investment income to average net assets (1)................................. 5.19%
Decrease reflected in above expense ratio due to
undertaking by the Manager (1)......................................................... 1.39%
Portfolio Turnover Rate (2).............................................................. 20.13%
Net Assets, end of period (000's Omitted)................................................ $22,599
(1) Annualized.
(2) Not annualized.
See notes to financial statements.
</TABLE>
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
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 registration 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, until August 24, 1994,
acted as the exclusive distributor of the Fund's shares, which are sold to
the public without a sales charge. Dreyfus Service Corporation is a
wholly-owned subsidiary of The Dreyfus Corporation ("Manager"). Effective
August 24, 1994, the Manager became a direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
(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 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 , 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, 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 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.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $1,400
available for Federal income tax purposes to be applied against future net
securities profits, if any realized subsequent to November 30, 1994. The
carryover does not include net realized securities losses from November 1,
1994 through November 30, 1994 which are treated, for Federal income tax
purposes, as arising in fiscal 1995. If not applied, the carryover expires in
fiscal 2002.
(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 November 30, 1994, the
unamortized balance of such expenses amounted to $44,296. 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.
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 December 31, 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 $216,181
for the period ended November 30, 1994.
The Manager has currently undertaken through March 31, 1995 or until such
time as the net assets of the Fund exceed $50 million, regardless of whether
they remain at that level, to waive receipt of the management fee paid by and
assume all others expenses of the Fund, to the extent that such expenses
(excluding certain expenses as described above) exceed an annual rate of .25
of 1% of the average daily value of the Fund's net assets.
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
Dreyfus Service Corporation 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
November 30, 1994, no amounts were charged to the Fund pursuant to the
Shareholder Services Plan.
(C) Prior to August 24, 1994, certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each trustee who is not an "affiliated person"
receives an annual fee of $1,000 and an attendance fee of $250 per meeting.
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $42,689,732 and $18,384,553, respectively, for the period ended
November 30, 1994, and consisted entirely of long-term and short-term
municipal investments.
At November 30, 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 PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus Pennsylvania Intermediate Municipal Bond Fund, including the
statement of investments, as of November 30, 1994, and the related statements
of operations and changes in net assets and financial highlights for the
period from December 16, 1993 (commencement of operations) to November 30,
1994. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of November 30, 1994 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Pennsylvania Intermediate Municipal Bond Fund at November
30, 1994, and the results of its operations, the changes in its net assets
and the financial highlights for the period from December 16, 1993 to
November 30, 1994, in conformity with generally accepted accounting
principles.
(logo signature)
New York, New York
January 5, 1995
DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the period December 16, 1993
(commencement of operations) to November 30, 1994 as "exempt-interest
dividends" (not subject to regular Federal and, for individuals who are
Pennsylvania residents, Pennsylvania personal income taxes).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1994 calendar year
on Form 1099-DIV which will be mailed by January 31, 1995.
Performance
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PENNSYLVANIA
INTERMEDIATE
MUNICIPAL BOND FUND AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
* Source: Lehman Brothers
Actual Aggregate Total Returns
From Inception (12/16/93) to November 30, 1994.................... (0.58%)
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in the Dreyfus
Pennsylvania Intermediate Municipal Bond Fund on 12/16/93 (Inception Date) to
a $10,000 investment made in the Lehman Brothers 10-Year Municipal Bond Index
on that date. For comparative purposes, the value of the Index on 12/31/93 is
used as the beginning value on 12/16/93. All dividends and capital gain
distributions are reinvested.
The Fund, which invested only in securities whose income was exempt from
Pennsylvania Income tax during the period, has a portfolio with a weighted
average maturity of between 3 and 10 years. The Fund's performance takes into
account fees and expenses. Unlike the Fund, the Lehman Brothers 10-Year
Municipal Bond Index is an unmanaged total return performance benchmark for
the investment-grade, 10-year tax exempt bond market. It consists of
municipal bonds issued by municipalities countrywide, with maturities of more
than 8 years and less than 12 years. The Index does not take into account
charges, fees and other expenses. Further information relating to Fund
performance, including any expense reimbursements, if applicable, is
contained in the Condensed Financial Information section of the Prospectus
and elsewhere in this report.
$9,942
Dreyfus Pennsylvania
Intermediate Municipal
Bond Fund
In Dollars
$9,354
Lehman Brothers
10-Year
Municipal Bond Index*
DREYFUS PENNSYLVANIA 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
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. 105AR9411
Pennsylvania
Intermediate
Municipal
Bond Fund
Annual Report
November 30, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
AND THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
__________________________________________________
| | | |
| |LEHMAN BROTHERS| |
| PERIOD | 10-YEAR |DREYFUS PENNSYLVANIA |
| | MUNICIPAL | INTERMEDIATE |
| | BOND INDEX * | MUNICIPAL BOND FUND |
|-----------|---------------|---------------------|
| 12/16/93 | 10,000 | 10,000 |
| 2/28/94 | 9,845 | 10,325 |
| 5/31/94 | 9,650 | 10,242 |
| 8/31/94 | 9,808 | 10,435 |
| 11/30/94 | 9,354 | 9,942 |
|-------------------------------------------------|
*Source: Lehmam Brothers
