-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Op+twpIb7nNNDDqIC+9iuIaeiUz3Rfmit9m2ZPcglHb81HG+P7joucfQ9IHDmq1L M6OfxqCQHBeQbmeF1nTHdQ== 0000887073-03-000007.txt : 20031124 0000887073-03-000007.hdr.sgml : 20031124 20031124113516 ACCESSION NUMBER: 0000887073-03-000007 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030930 FILED AS OF DATE: 20031124 EFFECTIVENESS DATE: 20031124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0000887073 IRS NUMBER: 133664285 STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06642 FILM NUMBER: 031019832 BUSINESS ADDRESS: STREET 1: 200 PARK AVE STREET 2: DREYFUS CORP CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2129226130 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 N-CSR 1 formncsr914.txt SEMI-ANNUAL REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR/A CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-6642 DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND (Exact name of Registrant as specified in charter) c/o The Dreyfus Corporation 200 Park Avenue New York, New York 10166 (Address of principal executive offices) (Zip code) Mark N. Jacobs, Esq. 200 Park Avenue New York, New York 10166 (Name and address of agent for service) Registrant's telephone number, including (212) 922-6000 area code: Date of fiscal year end: 03/31 Date of reporting period: 9/30/03 FORM N-CSR ITEM 1. REPORTS TO STOCKHOLDERS. Dreyfus Connecticut Intermediate Municipal Bond Fund SEMIANNUAL REPORT September 30, 2003 The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund. Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value Contents THE FUND - -------------------------------------------------- 2 Letter from the Chairman 3 Discussion of Fund Performance 6 Statement of Investments 11 Statement of Assets and Liabilities 12 Statement of Operations 13 Statement of Changes in Net Assets 14 Financial Highlights 15 Notes to Financial Statements FOR MORE INFORMATION - --------------------------------------------------------------------------- Back Cover The Fund Dreyfus Connecticut Intermediate Municipal Bond Fund LETTER FROM THE CHAIRMAN Dear Shareholder: This semiannual report for Dreyfus Connecticut Intermediate Municipal Bond Fund covers the six-month period from April 1, 2003, through September 30, 2003. 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, James Welch. After a prolonged period of sluggish growth, the U.S. economy has shown signs of sustainable improvement. However, investor uncertainty regarding the strength of the recovery has produced heightened volatility in the tax-exempt fixed-income market. After most areas of the municipal bond market experienced sharp declines during the summer, prices generally bounced back in September. Despite recent reductions in federal tax rates, we believe that municipal bonds may become more attractive to certain investors if states and municipalities continue to raise taxes to balance their budgets. As always, we encourage you to talk with your financial advisor about ways to enjoy the benefits of tax-exempt municipal bonds as market conditions evolve. Thank you for your continued confidence and support. Sincerely, /s/ Stephen E. Canter Stephen E. Canter Chairman and Chief Executive Officer The Dreyfus Corporation October 15, 2003 DISCUSSION OF FUND PERFORMANCE James Welch, Portfolio Manager How did Dreyfus Connecticut Intermediate Municipal Bond Fund perform relative to its benchmark? During the six-month period ended September 30, 2003, the fund achieved a total return of 1.74% .(1) The Lehman Brothers 7-Year Municipal Bond Index (the " Index" ), the fund's benchmark, achieved a total return of 3.21% for the same period.(2) In addition, the average total return for all funds reported in the Lipper Other States Intermediate Municipal Debt Funds category was 2.13%.(3) We attribute the fund's performance primarily to heightened market volatility, particularly during the second half of the reporting period, when changing economic expectations resulted in steep declines in municipal bond prices. The fund produced lower returns than the Index and the Lipper category, primarily because of credit concerns affecting a small number of its holdings. Also, both the Index and Lipper category funds contain securities from many states, not just Connecticut. What is the fund's investment approach? The fund seeks as high a level of income exempt from federal and Connecticut state income taxes as is consistent with the preservation of capital. To pursue its goal, the fund normally invests substantially all of its assets in municipal bonds that provide income exempt from federal and Connecticut state personal income taxes. The dollar-weighted average maturity of the fund's portfolio ranges between three and ten years. Although the fund currently intends to invest only in investment-grade municipal bonds, or the unrated equivalent as determined by Dreyfus, it has the ability to invest up to 20% of its assets in municipal bonds of below investment-grade credit quality The portfolio manager may buy and sell bonds based on credit quality, market outlook and yield potential. In selecting municipal bonds for investment, the portfolio manager may assess the current interest-rate environment and the municipal bond's potential volatility in different The Fund DISCUSSION OF FUND PERFORMANCE (CONTINUED) rate environments. The portfolio manager focuses on bonds with the potential to offer attractive current income, typically looking for bonds that can provide consistently attractive current yields or that are trading at competitive market prices. A portion of the fund's assets may be allocated to "discount" bonds, which are bonds that sell at a price below their face value, or to "premium" bonds, which are bonds that sell at a price above their face value. The fund's allocation to either discount bonds or to premium bonds will change along with the portfolio manager's changing views of the current interest-rate and market environment. The portfolio manager also may look to select bonds that are most likely to obtain attractive prices when sold. What other factors influenced the fund's performance? After an extended period of economic weakness and risk aversion among investors, the reporting period began on a more optimistic note. The allied coalition had already entered Iraq in late March 2003, and it quickly became apparent that major combat operations would be over quickly. As a result, a veil of uncertainty began to lift from the U.S. economy. Nonetheless, interest rates continued to trend lower during the spring as investors anticipated further short-term interest-rate reductions from the Federal Reserve Board (the "Fed"). The Fed fulfilled those expectations when it lowered the federal funds rate in late June to 1%, a 45-year low. Longer-term tax-exempt bond yields also declined, albeit more modestly. However, when evidence of stronger economic growth emerged in July, many investors became concerned that the Fed's most recent rate cut might be its last, and they sold bonds. As a result, the municipal bond market suffered one of the worst one-month declines in its history, erasing all of the reporting period's previous gains before recovering in late August and September. Despite signs of stronger economic growth, many states and municipalities faced revenue shortfalls and widening budget deficits during the reporting period. Although Connecticut has fared better than many other states, it also faced a budget deficit for its 2004 fiscal year, which it bridged through a combination of tax increases and spending reduc tions. In addition, Connecticut municipalities issued a higher volume of tax-exempt securities to fund their operating budgets. In this challenging market environment, we attempted to reduce the fund's sensitivity to market volatility by maintaining its average duration in a range we consider slightly shorter than neutral. In addition, we continued to look for high-quality securities when making new purchases, favoring bonds backed by the revenues of essential-services facilities -- such as water and power plants -- over Connecticut's unsecured general obligation bonds. Despite our consistent focus on higher-quality issues, the fund's returns were hindered by credit concerns regarding a small number of its existing holdings, including bonds backed by the settlement of litigation with the nation's tobacco companies. Although the affected bonds have continued to pay interest and have begun to recover, they caused the fund' s total return to lag during the reporting period. What is the fund's current strategy? We recently have focused primarily on bonds in the five- to 10-year maturity range, where yield differences among bonds of various maturities have been relatively wide. In our view, bonds in this range are likely to benefit more than longer- or shorter-term bonds as they move closer to their final maturities over time. At the same time, we have maintained our generally cautious investment posture in today' s uncertain market environment, emphasizing high-rated securities from issuers we consider creditworthy. October 15, 2003 (1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES FOR NON-CONNECTICUT RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE. (2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE LEHMAN BROTHERS 7-YEAR MUNICIPAL BOND INDEX IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR THE INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED 7-YEAR TAX-EXEMPT BOND MARKET, CONSISTING OF MUNICIPAL BONDS WITH MATURITIES OF 6-8 YEARS. INDEX RETURNS DO NOT REFLECT THE FEES AND EXPENSES ASSOCIATED WITH OPERATING A MUTUAL FUND. (3) SOURCE: LIPPER INC. -- CATEGORY AVERAGE RETURNS REFLECT THE FEES AND EXPENSES OF THE FUNDS COMPRISING THE AVERAGE. The Fund STATEMENT OF INVESTMENTS September 30, 2003 (Unaudited)
STATEMENT OF INVESTMENTS Principal LONG-TERM MUNICIPAL INVESTMENTS--97.8% Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT--75% Bridgeport 6%, 9/1/2006 (Insured; AMBAC) 1,750,000 1,969,012 Connecticut: 5.25, 3/15/2010 (Insured; MBIA) 5,100,000 5,649,168 5%, 8/1/2010 (Insured; FSA) 3,000,000 3,383,850 5.25%, 12/15/2010 50,000 57,245 5.375%, 12/15/2010 (Insured; MBIA) 4,100,000 4,735,705 9.227%, 12/15/2010 1,250,000 (a,b) 1,612,262 5.75%, 6/15/2011 30,000 34,506 10.227%, 6/15/2011 1,500,000 (a,b) 1,950,585 5.125%, 11/15/2013 1,500,000 1,663,185 Airport Revenue (Bradley International Airport) 5.25%, 10/1/2017 (Insured; FGIC) 2,275,000 2,426,720 (Clean Water Fund) Revenue: 5.40%, 6/1/2007 (Prerefunded 6/1/2004) 1,805,000 (c) 1,894,167 5.125%, 7/1/2007 (Insured; MBIA) 2,000,000 2,116,460 Special Tax Obligation Revenue (Transportation Infrastructure): 5.25%, 9/1/2007 1,115,000 1,255,780 5.25%, 9/1/2007 (Insured; MBIA) 1,360,000 1,533,196 5.375%, 9/1/2008 2,500,000 2,860,725 5.50%, 11/1/2012 (Insured; FSA) 4,180,000 4,869,951 5.375%, 7/1/2013 (Insured; FSA) 1,000,000 1,138,230 Connecticut Development Authority, Revenue (Duncaster Project) 5.50%, 8/1/2011 (Insured; FGIC) 2,405,000 2,703,436 First Mortgage Gross: (Church Homes, Inc.) 5.70%, 4/1/2012 1,990,000 1,967,334 (Elim Park Baptist) 5.375%,12/1/2011 1,765,000 1,782,862 Connecticut Health and Educational Facilities Authority, Revenue: (Connecticut State University System) 5%, 11/1/2016 (Insured; FGIC) 1,000,000 1,096,680 (Greenwich Hospital) 5.75%, 7/1/2006 (Insured; MBIA) 1,000,000 1,114,880 (Hospital for Special Care) 5.125% 7/1/2007 1,400,000 1,345,190 (New Haven) 6.625%, 7/1/2016 2,000,000 2,100,520 (Park Fairfield Health Center) 6.25%, 11/1/2021 2,500,000 2,729,550 (Saint Marys Hospital) 6%, 7/1/2005 1,070,000 1,089,196 (Stamford Hospital) 5.20%, 7/1/2007 (Insured; MBIA) 2,210,000 2,442,492 (Quinnipiac College) 6%, 7/1/2013 2,445,000 2,496,149 (University of New Haven) 6%, 7/1/2006 400,000 425,256 (Windham Community Memorial Hospital) 5.75%, 7/1/2011 730,000 781,618 (Yale New Haven Hospital) 5.50%, 7/1/2013 (Insured; MBIA) 1,000,000 1,120,830 Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT (CONTINUED) Connecticut Higher Education Supplemental Loan Authority, Revenue (Family Education Loan Program): 5.70%, 11/15/2004 770,000 787,641 5.80%, 11/15/2005 1,055,000 1,079,961 5.90%, 11/15/2006 1,110,000 1,137,106 5.50%, 11/15/2008 1,095,000 1,128,387 5.60%, 11/15/2009 1,165,000 1,201,546 5.625%, 11/15/2011 (Insured; AMBAC) 945,000 1,016,385 Connecticut Housing Finance Authority (Housing Mortgage Finance Program): 5.65%, 11/15/2007 1,000,000 1,019,570 5.90%, 11/15/2015 1,740,000 1,839,215 Connecticut Resource Recovery Authority, Revenue: (American Refunding-Fuel Co) 5.50%, 11/15/2015 3,250,000 3,332,452 (Bridgeport Resco Co. LP Project) 5.375%, 1/1/2006 2,500,000 2,725,700 (Mid-Connecticut System) 5.50%, 11/15/2012 1,000,000 986,550 Danbury 5.25%, 8/15/2004 815,000 845,310 Fairfield 5.50%, 4/1/2011 2,030,000 2,350,963 Greenwich Housing Authority, MFHR (Greenwich Close) 6.25%, 9/1/2017 2,000,000 2,005,740 Hamden 5.25%, 8/15/2014 (Insured; MBIA) 1,000,000 1,129,170 Hartford, Package System Revenue 6.40%, 7/1/2020 1,000,000 1,043,730 Middletown 5%, 4/15/2008 1,760,000 1,967,680 New Britain 5.50%, 3/1/2004 (Insured; MBIA) 1,000,000 1,018,970 New Canaan: 5.25%, 2/1/2009 (Prerefunded 2/1/2006) 550,000 (c) 600,595 5.30%, 2/1/2010 (Prerefunded 2/1/2006) 650,000 (c) 710,535 New Haven: 5.25%, 8/1/2006 (Insured; FGIC) 1,200,000 1,305,324 5.25%, 11/1/2011 (Insured; FGIC) 1,335,000 1,525,625 5.375%, 11/1/2013 (Insured; FGIC) 1,420,000 1,631,466 (Air Rights Parking Facility Revenue) 5.375%, 12/1/2011 (Insured; AMBAC) 1,165,000 1,339,785 Norwich 5.75%, 9/15/2005 (Prerefunded 9/15/2004) 875,000 (c) 931,674 Ridgefield 5%, 3/1/2011 1,790,000 2,016,238 South Central Regional Water Authority, Water System Revenue 5.25%, 8/1/2011 (Insured; MBIA) 1,500,000 1,709,010 Stamford: 6.625%, 3/15/2004 1,620,000 1,662,088 6.625%, 3/15/2004 (Escrowed to Maturity) 1,130,000 1,159,357 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) Principal LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT (CONTINUED) University of Connecticut: 5.25%, 2/15/2012 2,000,000 2,270,420 5.75%, 3/1/2013 (Insured; FGIC) 1,850,000 2,132,181 Westport: 5%, 8/15/2013 1,400,000 1,576,498 5%, 8/15/2016 1,500,000 1,676,265 5%, 8/15/2017 3,470,000 3,847,258 U.S. RELATED--22.8% Childrens Trust Fund, Tobacco Settlement Revenue: 5%, 5/15/2011 1,930,000 1,887,443 5.75%, 7/1/2012 (Prerefunded 7/1/2010) 1,500,000 (c) 1,771,485 5.75%, 7/1/2013 (Prerefunded 7/1/2010) 1,300,000 (c) 1,535,287 5.75%, 7/1/2014 (Prerefunded 7/1/2010) 4,000,000 (c) 4,723,960 Commonwealth of Puerto Rico: 5.30%, 7/1/2004 (Insured; MBIA) 55,000 56,783 5.30%, 7/1/2004 (Insured; MBIA) 945,000 975,637 (Public Improvement): 5.25%, 7/1/2012 (Insured; FSA) 2,600,000 2,972,996 5.25%, 7/1/2014 (Insured; MBIA) 1,000,000 1,150,320 5.50%, 7/1/2016 (Insured; FGIC) 3,270,000 3,832,963 Guam Economic Development Authority, Tobacco Settlement: 0/5.20%, 5/15/2012 795,000 (d) 615,847 0/5.45%, 5/15/2016 1,445,000 (d) 1,084,718 5%, 5/15/2022 310,000 303,909 Puerto Rico Electric Power Authority, Power Revenue: 6.125%, 7/1/2009 (Insured; MBIA) 4,000,000 4,765,200 5%, 7/1/2011 3,000,000 3,290,280 Virgin Islands Public Finance Authority, Revenue Gross Receipts Taxes Loan: 5.625%, 10/1/2010 1,000,000 1,093,800 6.375%, 10/1/2019 3,000,000 3,334,680 Matching Fund 5.50%, 10/1/2008 1,500,000 1,636,950 TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $141,408,015) 150,089,393 Principal SHORT-TERM MUNICIPAL INVESTMENTS--1.3% Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ Connecticut Health and Educational Facilities Authority, Revenue,VRDN: (Yale University) 1.19% (cost $2,000,000) 2,000,000 (e) 2,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (cost $143,408,015) 99.1% 152,089,393 CASH AND RECEIVABLES (NET) .9% 1,442,751 NET ASSETS 100.0% 153,532,144 The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) Summary of Abbreviations AMBAC American Municipal Bond Assurance Corporation FGIC Financial Guaranty Insurance Company FSA Financial Security Assurance MBIA Municipal Bond Investors Assurance Insurance Corporation MFHR Multi-Family Housing Revenue VRDN Variable Rate Demand Notes Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%) - ------------------------------------------------------------------------------------------------------------------------------------ AAA Aaa AAA 60.0 AA Aa AA 16.7 A A A 4.5 BBB Baa BBB 15.3 BB Ba BB .9 FI MIG1/PI SP1/A1 1.3 Not Rated (f) Not Rated (f) Not Rated (f) 1.3 100.0 (A) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE PERIODICALLY. (B) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT SEPTEMBER 30, 2003, THESE SECURITIES AMOUNTED TO $3,562,848 OR 2.3% OF NET ASSETS. (C) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING DATE. (D) ZERO COUPON UNTIL A SPECIFIED DATE AT WHICH TIME THE STATED COUPON RATE BECOMES EFFECTIVE UNTIL MATURITY. (E) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC CHANGE. (F) SECURITY WHICH , WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED SECURITIES IN WHICH THE FUND MAY INVEST. SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES September 30, 2003 (Unaudited) Cost Value - -------------------------------------------------------------------------------- ASSETS ($): Investments in securities--See Statement of Investments 143,408,015 152,089,393 Cash 22,968 Interest receivable 2,013,849 Receivable for shares of Beneficial Interest subscribed 817 Prepaid expenses 6,457 154,133,484 - -------------------------------------------------------------------------------- LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 83,681 Payable for shares of Beneficial Interest redeemed 469,412 Accrued expenses and other liabilities 48,247 601,340 - -------------------------------------------------------------------------------- NET ASSETS ($) 153,532,144 - -------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS ($): Paid-in capital 145,475,037 Accumulated undistributed investment income--net 77,027 Accumulated net realized gain (loss) on investments (701,298) Accumulated net unrealized appreciation (depreciation) on investments 8,681,378 - -------------------------------------------------------------------------------- NET ASSETS ($) 153,532,144 - -------------------------------------------------------------------------------- SHARES OUTSTANDING (unlimited number of $.001 par value shares of Beneficial Interest authorized) 10,779,370 NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 14.24 SEE NOTES TO FINANCIAL STATEMENTS. The Fund STATEMENT OF OPERATIONS Six Months Ended September 30, 2003 (Unaudited) - -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INTEREST INCOME 3,663,855 EXPENSES: Management fee--Note 3(a) 470,870 Shareholder servicing costs--Note 3(b) 83,481 Professional fees 25,344 Custodian fees 11,620 Trustees' fees and expenses--Note 3(c) 7,713 Prospectus and shareholders' reports 6,572 Registration fees 4,785 Loan commitment fees--Note 2 719 Miscellaneous 9,234 TOTAL EXPENSES 620,338 Less--reduction in management fee due to undertaking--Note 3(a) (6,596) NET EXPENSES 613,742 INVESTMENT INCOME--NET 3,050,113 - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($): Net realized gain (loss) on investments (329,973) Net unrealized appreciation (depreciation) on investments (9,739) NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (339,712) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,710,401 SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF CHANGES IN NET ASSETS Six Months Ended September 30, 2003 Year Ended (Unaudited) March 31, 2003 - -------------------------------------------------------------------------------- OPERATIONS ($): Investment income--net 3,050,113 6,151,906 Net realized gain (loss) on investments (329,973) 667,381 Net unrealized appreciation (depreciation) on investments (9,739) 5,025,731 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 2,710,401 11,845,018 - -------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS FROM ($): INVESTMENT INCOME--NET (3,036,493) (6,169,004) - -------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS ($): Net proceeds from shares sold 11,638,282 37,289,223 Dividends reinvested 2,281,847 4,679,374 Cost of shares redeemed (18,642,959) (27,066,690) INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS (4,722,830) 14,901,907 TOTAL INCREASE (DECREASE) IN NET ASSETS (5,048,922) 20,577,921 - ------------------------------------------------------------------------------- NET ASSETS ($): Beginning of Period 158,581,066 138,003,145 END OF PERIOD 153,532,144 158,581,066 Undistributed investment income--net 77,027 -- - -------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS (SHARES): Shares sold 817,751 2,642,104 Shares issued for dividends reinvested 160,429 330,526 Shares redeemed (1,314,037) (1,914,455) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (335,857) 1,058,175 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.
Six Months Ended September 30, 2003 Year Ended March 31, ----------------------------------------------------------------- (Unaudited) 2003 2002(a) 2001 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 13.72 13.72 13.86 13.37 13.97 13.87 Investment Operations: Investment income--net .28(b) .57(b) .61(b) .60 .58 .58 Net realized and unrealized gain (loss) on investments .52 .56 (.15) .49 (.60) .10 Total from Investment Operations .80 1.13 .46 1.09 (.02) .68 Distributions: Dividends from investment income--net (.28) (.58) (.60) (.60) (.58) (.58) Dividends from net realized gain on investments -- -- -- (.00)(c) -- -- Total Distributions (.28) (.58) (.60) (.60) (.58) (.58) Net asset value, end of period 14.24 14.27 13.72 13.86 13.37 13.97 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN (%) 1.74(d) 8.31 3.44 8.31 (.10) 4.96 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .78(e) .78 .77 .79 .79 .80 Ratio of net investment income to average net assets 3.88(e) 4.05 4.38 4.46 4.29 4.13 Decrease reflected in above expense ratios due to undertakings by The Dreyfus Corporation .01(e) -- .00(f) .02 .03 .06 Portfolio Turnover Rate 13.39(d) 21.13 28.50 34.90 13.33 12.71 - ------------------------------------------------------------------------------------------------------------------------------------ Net Assets, end of period ($ x 1,000) 153,532 158,581 138,003 135,571 125,702 141,961 (A) AS REQUIRED, EFFECTIVE APRIL 1, 2001, THE FUND HAS ADOPTED THE PROVISIONS OF THE AICPA AUDIT AND ACCOUNTING GUIDE FOR INVESTMENT COMPANIES AND BEGAN AMORTIZING DISCOUNT OR PERMIUM ON A SCIENTIFIC BASIS FOR DEBT SECURITIES. THE EFFECT OF THIS CHANGE FOR THE PERIOD ENDED MARCH 31, 2002 WAS TO INCREASE NET INVESTMENT INCOME PER SHARE BY LESS THAN $.01 AND DECREASE NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS PER SHARE BY LESS THAN $.01 AND INCREASE THE RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS FROM 4.35% TO 4.38%. PER SHARE DATA AND RATIOS/SUPPLEMENTAL DATA FOR PERIODS PRIOR TO APRIL 1, 2001 HAVE NOT BEEN RESTATED TO REFLECT THIS CHANGE IN PRESENTATION. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) AMOUNT REPRESENTS LESS THAN$.01 PER SHARE. (D) NOT ANNUALIZED. (E) ANNUALIZED. (F) AMOUNT REPRESENTS LESS THAN .01%. SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1--Significant Accounting Policies: Dreyfus Connecticut Intermediate Municipal Bond Fund (the "fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a non-diversified open-end management investment company. The fund's investment objective is to provide investors with as high a level of current income exempt from federal and Connecticut 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 wholly-owned subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation. Dreyfus Service Corporation (the "Distributor"), a wholly-owned subsidiary of the Manager, is the distributor of the fund's shares, which are sold to the public without a sales charge. The fund' s financial statements are prepared in accordance with accounting principles generally accepted in the United States, 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 (the "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. The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) (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 discount and premium 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 $4,038 during the period ended September 30, 2003, 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, 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 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. Income and capital gain distributions are determined in accordance with incomes tax regulations, which may differ from accounting principles generally accepted in the United States. (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 $371,325 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to March 31, 2003. If not applied, $51,654 of the carryover expires in fiscal 2004, $42,968 expires in fiscal 2008 and $276,703 expires in fiscal 2009. The tax character of distributions paid to shareholders during the fiscal year ended March 31, 2003 were as follows: tax exempt income $6,169,004. The tax character of current year distributions will be determined at the end of the current fiscal year. NOTE 2--Bank Line of Credit: The fund participates with other Dreyfus-managed funds in a $500 million redemption credit facility (the "Facility" ) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings. During the period ended September 30, 2003, 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, 2003 through to September 30, 2003, to reduce the management fee paid by the fund, if the aggregate annual expenses of the fund, exclusive of taxes, brokerage fees, interest on borrowings, commitment fees and extraordinary expenses, exceed an annual rate of .80 of 1% of the value of the fund's average daily net assets. The reduction in management fee, pursuant to the undertaking, amounted to $6,596 during the period ended September 30, 2003. The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) (b) Under the fund' s Shareholder Services Plan, the fund reimburses the Distributor an amount not to exceed an annual rate of .25 of 1% of the value of the fund's average daily net assets for certain allocated expenses of providing personal services and/or maintaining shareholder accounts. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended September 30, 2003, the fund was charged $48,668 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, 2003, the fund was charged $22,416 pursuant to the transfer agency agreement. (c) Each Board member also serves as a Board member of other funds within the Dreyfus complex (collectively, the "Fund Group"). Each Board member who is not an "affiliated person" as defined in the Act receives an annual fee of $25,000, an attendance fee of $4,000 for each in-person meeting and $500 for telephone meetings. The chairman of the Board receives an additional 25% of such compensation. Subject to the fund's Emeritus Program Guidelines, Emeritus Board Members, if any, receive 50% of the annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status. These fees are allocated among the funds in the Fund Group in proportion to each fund's relative net assets. (d) A 1% redemption fee is charged and retained by the fund on shares redeemed within thirty days following the date of issuance, including redemptions made through use of the fund exchange privilege. During the period ended September 30, 2003, redemption fees charged and retained by the fund amounted to $875. NOTE 4--Securities Transactions: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended September 30, 2003 amounted to $20,711,691 and $25,189,603, respectively. At September 30, 2003, accumulated net unrealized appreciation on investments was $8,681,378, consisting of $9,106,605 gross unrealized appreciation and $425,227 gross unrealized depreciation. At September 30, 2003, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). The Fund NOTES For More Information Dreyfus Connecticut Intermediate Municipal Bond Fund 200 Park Avenue New York, NY 10166 Manager The Dreyfus Corporation 200 Park Avenue New York, NY 10166 Custodian The Bank of New York 100 Church Street New York, NY 10286 Transfer Agent & Dividend Disbursing Agent Dreyfus Transfer, Inc. 200 Park Avenue New York, NY 10166 Distributor Dreyfus Service Corporation 200 Park Avenue New York, NY 10166 To obtain information: BY TELEPHONE Call 1-800-645-6561 BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard Uniondale, NY 11556-0144 BY E-MAIL Send your request to info@dreyfus.com ON THE INTERNET Information can be viewed online or downloaded from: http://www.dreyfus.com (c) 2003 Dreyfus Service Corporation 914SA0903 ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. (b) There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 10. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND By: /s/Stephen E. Canter ____________________ Stephen E. Canter President Date: November 21, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /s/Stephen E. Canter _________________________ Stephen E. Canter Chief Executive Officer Date: November 21, 2003 By: /s/James Windels ________________________ James Windels Chief Financial Officer Date: November 21, 2003 EXHIBIT INDEX (a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT) (b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT) EX-99.CERT 3 cert302914.txt CERTIFICATION REQUIRED BY RULE 30A-2 [EX-99.CERT] Exhibit (a)(2) SECTION 302 CERTIFICATIONS I, Stephen E. Canter, certify that: 1. I have reviewed this report on Form N-CSR of DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. By: /s/Stephen E. Canter ____________________ Stephen E. Canter Chief Executive Officer Date: November 21, 2003 SECTION 302 CERTIFICATIONS I, James Windels, certify that: 1. I have reviewed this report on Form N-CSR of DREYFUS CONNECTICUT INTERMEDIATE MUNICIPAL BOND FUND; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. By: /s/James Windels __________________ James Windels Chief Financial Officer Date: November 21, 2003 EX-99.906CERT 4 cert906914.txt CERTIFICATION REQUIRED BY SECTION 906 [EX-99.906CERT] Exhibit (b) SECTION 906 CERTIFICATIONS In connection with this report on Form N-CSR for the Registrant as furnished to the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. By: /s/Stephen E. Canter _____________________ Stephen E. Canter Chief Executive Officer Date: November 21, 2003 By: /s/James Windels _____________________ James Windels Chief Financial Officer Date: November 21, 2003 THIS CERTIFICATE IS FURNISHED PURSUANT TO THE REQUIREMENTS OF FORM N-CSR AND SHALL NOT BE DEEMED "FILED" FOR PURPOSES OF SECTION 18 OF THE SECURITIES EXCHANGE ACT OF 1934, OR OTHERWISE SUBJECT TO THE LIABILITY OF THAT SECTION, AND SHALL NOT BE DEEMED TO BE INCORPORATED BY REFERENCE INTO ANY FILING UNDER THE SECURITIES ACT OF 1933 OR THE EXCHANGE ACT OF 1934. -----END PRIVACY-ENHANCED MESSAGE-----