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
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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
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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 ($) Value ($)
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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 ($) Value ($)
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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 ($) Value ($)
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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 ($)
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Connecticut Health and Educational Facilities Authority,
Revenue,VRDN:
(Yale University) 1.19%
(cost $2,000,000) 2,000,000 (e) 2,000,000
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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 (%)
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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 $3,562,848 OR 2.3% OF NET ASSETS.
(C) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(D) ZERO COUPON UNTIL A SPECIFIED DATE AT WHICH TIME THE STATED COUPON RATE
BECOMES EFFECTIVE UNTIL MATURITY.
(E) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE--SUBJECT TO PERIODIC
CHANGE.
(F) SECURITY WHICH , WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2003 (Unaudited)
Cost Value
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ASSETS ($):
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
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 83,681
Payable for shares of Beneficial Interest redeemed 469,412
Accrued expenses and other liabilities 48,247
601,340
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NET ASSETS ($) 153,532,144
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 145,475,037
Accumulated undistributed investment income--net 77,027
Accumulated net realized gain (loss) on investments (701,298)
Accumulated net unrealized appreciation
(depreciation) on investments 8,681,378
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NET ASSETS ($) 153,532,144
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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)
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INVESTMENT INCOME ($):
INTEREST INCOME 3,663,855
EXPENSES:
Management fee--Note 3(a) 470,870
Shareholder servicing costs--Note 3(b) 83,481
Professional fees 25,344
Custodian fees 11,620
Trustees' fees and expenses--Note 3(c) 7,713
Prospectus and shareholders' reports 6,572
Registration fees 4,785
Loan commitment fees--Note 2 719
Miscellaneous 9,234
TOTAL EXPENSES 620,338
Less--reduction in management fee
due to undertaking--Note 3(a) (6,596)
NET EXPENSES 613,742
INVESTMENT INCOME--NET 3,050,113
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
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
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OPERATIONS ($):
Investment income--net 3,050,113 6,151,906
Net realized gain (loss) on investments (329,973) 667,381
Net unrealized appreciation
(depreciation) on investments (9,739) 5,025,731
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,710,401 11,845,018
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DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (3,036,493) (6,169,004)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 11,638,282 37,289,223
Dividends reinvested 2,281,847 4,679,374
Cost of shares redeemed (18,642,959) (27,066,690)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS (4,722,830) 14,901,907
TOTAL INCREASE (DECREASE) IN NET ASSETS (5,048,922) 20,577,921
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NET ASSETS ($):
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
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PER SHARE DATA ($):
Net asset value,
beginning of period 13.72 13.72 13.86 13.37 13.97 13.87
Investment Operations:
Investment income--net .28(b) .57(b) .61(b) .60 .58 .58
Net realized and unrealized
gain (loss) on investments .52 .56 (.15) .49 (.60) .10
Total from Investment Operations .80 1.13 .46 1.09 (.02) .68
Distributions:
Dividends from investment
income--net (.28) (.58) (.60) (.60) (.58) (.58)
Dividends from net realized
gain on investments -- -- -- (.00)(c) -- --
Total Distributions (.28) (.58) (.60) (.60) (.58) (.58)
Net asset value, end of period 14.24 14.27 13.72 13.86 13.37 13.97
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TOTAL RETURN (%) 1.74(d) 8.31 3.44 8.31 (.10) 4.96
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .78(e) .78 .77 .79 .79 .80
Ratio of net investment income
to average net assets 3.88(e) 4.05 4.38 4.46 4.29 4.13
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation .01(e) -- .00(f) .02 .03 .06
Portfolio Turnover Rate 13.39(d) 21.13 28.50 34.90 13.33 12.71
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Net Assets, end of period
($ 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)