We are pleased to present this annual report for BNY Mellon Intermediate Municipal Bond Fund, Inc. (formerly, Dreyfus Intermediate Municipal Bond Fund, Inc.), covering the 12-month period from June 1, 2018 through May 31, 2019. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.
At the beginning of the reporting period, developed economies outside of the U.S. continued to weaken, while the U.S. economy sustained its relatively healthy growth rate. Calm markets prevailed throughout the summer, as robust growth and strong corporate earnings supported U.S. stock returns, while other developed markets continued to decline.
The fourth quarter of 2018 saw broad market weakness, due in part to heightened concerns about rising interest rates, trade tensions and slowing global growth. The slump largely erased prior gains on U.S. indices, while losses deepened in international markets. December experienced a sharp sell-off, as it appeared that the U.S. Federal Reserve (the “Fed”) would maintain its hawkish stance on monetary policy. However, comments made by the Fed in January indicated that it would slow the pace of interest-rate increases, and this helped stimulate a rebound across equity markets that continued through much of the reporting period. However, in May, escalating trade tensions once again disrupted equity market progress, causing stock prices to pull back.
Fixed-income markets declined early in the period, as interest rates and inflation rose, pressuring most bond prices. Comparatively strong U.S. equity markets fed investor risk appetites, reducing the demand for Treasuries and increasing yields. But a return of stock market volatility in October triggered a flight to quality, boosting Treasury prices and flattening the yield curve. In January, when the Fed’s comments indicated that rate increases would be less likely in 2019, bond markets rallied and bond prices benefited from falling rates through the end of the period.
We remain positive on the near-term economic outlook for the U.S. but will monitor relevant data for any signs of a change. As always, we encourage you to discuss the risks and opportunities in today’s investment environment with your financial advisor.
Thank you for your continued confidence and support.
DISCUSSION OF FUND PERFORMANCE(Unaudited)
For the period from June 1, 2018 through May 31, 2019, as provided by Thomas Casey and Daniel Rabasco, Portfolio Managers
Market and Fund Performance Overview
For the 12-month period ended May 31, 2019, BNY Mellon Intermediate Municipal Bond Fund, Inc. (formerly, Dreyfus Intermediate Municipal Bond Fund, Inc.) produced a total return of 5.79%.1 In comparison, the Bloomberg Barclays Municipal Bond: 7-Year Index (6-8) (the “Index”), the fund’s benchmark, provided a total return of 6.49% for the same period.2
Municipal bonds encountered bouts of volatility stemming from shifting Federal Reserve policy and changing supply-and-demand dynamics in the municipal securities market. The fund lagged the Index, in part due to security selection in the transportation sector as well as in the prepaid gas sector.
The Fund’s Investment Approach
The fund seeks the maximum amount of current income exempt from federal income tax as is consistent with the preservation of capital. To pursue its goal, the fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in municipal bonds that provide income exempt from federal income tax.
The fund invests at least 80% of its assets in municipal bonds rated A or higher, or the unrated equivalent as determined by BNY Mellon Investment Adviser, Inc. The fund may invest up to 20% of its assets in municipal bonds rated below A, including bonds rated below investment grade (“high yield” or “junk” bonds) or the unrated equivalent as determined by BNY Mellon Investment Adviser, Inc. The dollar-weighted average maturity of the fund’s portfolio generally is between 3 and 10 years.
We focus on identifying undervalued sectors and securities, and we minimize the use of interest-rate forecasting. We select municipal bonds by using fundamental credit analysis to estimate the relative value and attractiveness of various sectors and securities and to exploit pricing inefficiencies in the municipal bond market. We actively trade among various sectors, such as pre-refunded, general obligation, and revenue, based on their apparent relative values.
A Shift in Federal Reserve Policy Drove Municipal Bonds
Municipal bonds struggled during the first two-thirds of the reporting period, as the economy continued to perform well, and the Federal Reserve (the “Fed”) continued on a path of raising short-term interest rates. The Fed hiked the federal funds policy rate three times during the reporting period, bringing the target range to 2.25%-2.50%. Flows into municipal bond funds remained robust, however, driven in part by the effects of the Tax Cuts and Jobs Act of 2017, which capped the federal tax deductibility of state and local taxes. Supply also was manageable, as new issuance for 2018 came in approximately 24% below that of 2017.
Toward the end of 2018, economic data became more mixed, and investors became increasingly concerned about the effect of the Fed’s hawkish stance on interest rates. This resulted in some volatility in capital markets that resulted in a flight to quality in which higher-quality securities, including municipal bonds, rallied strongly. The Fed’s shift to a more dovish stance also fed demand, as it confirmed investor concerns about a possible weakening of the economy and a lack of inflationary pressures.
As 2019 progressed, supply continued to be manageable, while demand rallied. Fund flows surged, hitting record levels. Contributing to this was ongoing demand, especially in high-tax states, from higher-income earners seeking shelter from the effects of the new cap on the deductibility of state and local taxes. The stability of the municipal bond market relative to that of the equity markets also attracted investors.
3
DISCUSSION OF FUND PERFORMANCE(Unaudited) (continued)
As rates fell, investors regained confidence and began to reach for incremental yield. As a result, longer-term municipals, especially those 10 years and longer, experienced a greater compression of yields than did shorter maturities, resulting in a flatter municipal bond yield curve. Investors also began to reach for the yield available from lower-quality issues, resulting in a tightening of quality spreads. The ratio of municipal bond yields to Treasury yields fell significantly, especially for longer-dated bonds, reflecting the outperformance of municipal bonds versus Treasuries.
Although long-term obligations, including pension and health care liabilities, remain a concern, credit quality remained stable to strong during the period. Driven by continued economic strength, tax revenues were healthy, allowing many issuers to increase their “rainy day” funds.
Selection Strategies Hindered Fund Results
The fund’s performance compared to the Index was hindered by security selection and allocation to sectors which produced weaker results. In particular, the fund’s position in prepaid gas bonds and tobacco securitization bonds detracted from returns. After a long period of outperformance, this sector lagged the benchmark as regulators considered whether to ban menthol cigarettes. Security selection within the transportation sector also hindered performance as a position in insured Puerto Rico Highway bonds produced weaker results.
In contrast, the fund’s interest-rate strategies contributed positively to the fund’s relative performance. A modestly long average duration compared to the Index made the fund more sensitive to falling interest rates. An overweight to 10-year maturities, which performed well, also added to the fund’s return, as did an overweight to both A and BBB rated bonds.
A Constructive Investment Posture
The economy remains strong, employment continues to be robust, and we expect this to continue for the remainder of the year. One risk to this outlook is a deterioration in trade relations, which could derail the economy’s momentum. Despite record-low unemployment, inflation remains subdued, so we anticipate that the Fed will leave short-term interest rates essentially unchanged with the possibility of a one-time cut in the short-term rate driven by the impact of trade policy and expectations for future economic data.
With demand for municipal bonds likely to remain strong and supply likely to be manageable, the municipal bond market is likely to perform relatively well. In addition, the cap on federal deductibility of state and local taxes will continue to help drive demand for municipal securities, encouraging the reinvestment of the proceeds of a large number of bonds that are due to mature in the coming months. We expect to keep the fund’s duration slightly long relative to the benchmark, and we will continue to focus on security selection, emphasizing undervalued issues and relying on our credit research capabilities.
June 17, 2019
1 Total return includes reinvestment of dividends. Had these charges been reflected, returns would have been lower. 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, 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. — The Bloomberg Barclays Municipal Bond: 7-Year Index (6-8) covers the U.S. dollar-denominated, 6- to 8-year, tax-exempt bond market. Investors cannot invest directly in any index.
Bonds are subject generally to interest-rate, credit, liquidity, and market risks, to varying degrees, all of which are more fully described in the fund’s prospectus. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes, and rate increases can cause price declines.
High yield bonds are subject to increased credit risk and are considered speculative in terms of the issuer’s perceived ability to continue making interest payments on a timely basis and to repay principal upon maturity.
4
FUND PERFORMANCE(Unaudited)
Comparison of change in value of $10,000 investment in BNY Mellon Intermediate Municipal Bond Fund, Inc. with a hypothetical investment of $10,000 in the Bloomberg Barclays Municipal Bond: 7 Year Index (6-8) (the “Index”).
† Source: Lipper Inc.
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in BNY Mellon Intermediate Municipal Bond Fund, Inc. on 5/31/09 to a hypothetical investment of $10,000 made in the Index on that date. All dividends and capital gain distributions are reinvested.
The fund invests primarily in municipal securities and maintains a portfolio with a weighted average maturity ranging between 3 and 10 years. The fund’s performance shown in the line graph above takes into account fees and expenses. The Index, unlike the fund, covers the U.S. dollar-denominated 6-8 year tax-exempt bond market. These factors can contribute to the Index potentially outperforming or underperforming the fund. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.
| | | | |
Average Annual Total Returns as of 5/31/19 |
| 1 Year | 5 Years | 10 Years |
Fund | 5.79% | 2.89% | 3.91% |
Bloomberg Barclays
Municipal Bond: 7 Year Index (6-8) | 6.49% | 2.98% | 4.04% |
The performance data quoted represents past performance, which is no guarantee of future results. Share price and investment return fluctuate and an investor’s shares may be worth more or less than original cost upon redemption. Current performance may be lower or higher than the performance quoted. Go to im.bnymellon.com for the fund’s most recent month-end returns.
The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
5
UNDERSTANDING YOUR FUND’S EXPENSES(Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in BNY Mellon Intermediate Municipal Bond Fund, Inc. from December 1, 2018 to May 31, 2019. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.
| | | | | | | | |
Expenses and Value of a $1,000 Investment | |
assuming actual returns for the six months ended May 31, 2019 | |
| | | | | | | |
Expenses paid per $1,000† | | $3.79 | | |
Ending value (after expenses) | | $1,056.30 | | |
COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS(Unaudited)
Using the SEC’s method to compare expenses
The Securities and Exchange Commission (“SEC”) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
| | | | | | | | | |
Expenses and Value of a $1,000 Investment | |
assuming a hypothetical 5% annualized return for the six months ended May 31, 2019 |
| | | | | | | |
Expenses paid per $1,000† | | $3.73 | | |
Ending value (after expenses) | | $1,021.24 | | |
† Expenses are equal to the fund’s annualized expense ratio of .74%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
6
STATEMENT OF INVESTMENTS
May 31, 2019
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% | | | | | |
Alabama - 1.9% | | | | | |
Alabama Public School & College Authority,
Revenue Bonds, Refunding, Ser. B | | 5.00 | | 1/1/2026 | | 1,500,000 | | 1,753,170 | |
Birmingham Water Works Board,
Revenue Bonds, Refunding, Ser. B | | 5.00 | | 1/1/2031 | | 3,260,000 | | 3,927,941 | |
Birmingham-Jefferson Civic Center Authority,
Special Tax Bonds, Ser. B | | 5.00 | | 7/1/2038 | | 2,975,000 | | 3,462,216 | |
Lower Alabama Gas District,
Revenue Bonds, Ser. A | | 5.00 | | 9/1/2031 | | 2,000,000 | | 2,479,060 | |
| | 11,622,387 | |
Arizona - .9% | | | | | |
Phoenix Civic Improvement Corporation,
Revenue Bonds, Refunding | | 5.00 | | 7/1/2028 | | 5,000,000 | | 5,843,000 | |
Arkansas - .6% | | | | | |
Fort Smith,
Revenue Bonds, Refunding | | 5.00 | | 10/1/2035 | | 1,500,000 | | 1,829,970 | |
University of Arkansas,
Revenue Bonds, Refunding (Fayetteville Campus) Ser. A | | 5.00 | | 11/1/2036 | | 1,585,000 | | 1,803,540 | |
| | 3,633,510 | |
California - 4.1% | | | | | |
California,
GO (Various Purpose) | | 5.00 | | 10/1/2030 | | 2,500,000 | | 3,197,825 | |
California,
GO, Refunding (Various Purpose) | | 5.00 | | 4/1/2033 | | 4,645,000 | | 5,925,719 | |
California,
GO, Refunding (Various Purpose) | | 5.00 | | 8/1/2030 | | 2,500,000 | | 3,055,700 | |
California State Public Works Board,
Revenue Bonds, Refunding (Various Capital Projects) Ser. H | | 5.00 | | 12/1/2026 | | 4,355,000 | | 5,161,981 | |
California Statewide Communities Development Authority,
Revenue Bonds (Loma Linda University Medical Center) Ser. A | | 5.00 | | 12/1/2031 | | 1,000,000 | a | 1,131,900 | |
Clovis Unified School District,
GO (Insured; National Public Finance Guarantee Corp.) Ser. A | | 0.00 | | 8/1/2022 | | 2,000,000 | b | 1,900,420 | |
Sacramento City Unified School District,
GO (Insured; Assured Guaranty Municipal Corp.) | | 0.00 | | 7/1/2023 | | 5,065,000 | b | 4,661,066 | |
7
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
California - 4.1% (continued) | | | | | |
Southern California Tobacco Securitization Authority,
Revenue Bonds, Refunding, Ser. A1 | | 4.75 | | 6/1/2025 | | 505,000 | | 507,555 | |
University of California,
Revenue Bonds, Refunding, Ser. Q | | 5.25 | | 5/15/2023 | | 125,000 | | 125,385 | |
| | 25,667,551 | |
Colorado - 3.8% | | | | | |
Colorado Health Facilities Authority,
Revenue Bonds (Catholic Health Initiatives) Ser. D | | 6.00 | | 10/1/2023 | | 5,355,000 | | 5,413,905 | |
Denver,
Revenue Bonds, Ser. A | | 5.50 | | 11/15/2026 | | 15,640,000 | | 18,135,988 | |
| | 23,549,893 | |
Connecticut - 2.7% | | | | | |
Connecticut,
GO, Ser. A | | 5.00 | | 10/15/2025 | | 5,500,000 | | 6,258,945 | |
Connecticut,
Revenue Bonds (Transportation Infrastructure Purposes) Ser. A | | 5.00 | | 9/1/2032 | | 5,500,000 | | 6,274,235 | |
Connecticut,
Revenue Bonds (Transportation Infrastructure Purposes) Ser. A | | 5.00 | | 8/1/2026 | | 2,500,000 | | 2,953,550 | |
Connecticut State Health & Educational Facilities Authority,
Revenue Bonds (Covenant Home Inc.) Ser. B | | 5.00 | | 12/1/2032 | | 1,000,000 | | 1,163,580 | |
| | 16,650,310 | |
District of Columbia - 2.3% | | | | | |
District of Columbia Water & Sewer Authority,
Revenue Bonds, Refunding, Ser. C | | 5.00 | | 10/1/2027 | | 5,980,000 | | 6,654,843 | |
Metropolitan Washington Airports Authority,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 10/1/2033 | | 2,500,000 | | 3,037,125 | |
Metropolitan Washington Airports Authority,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 10/1/2035 | | 1,000,000 | | 1,169,420 | |
Metropolitan Washington Airports Authority,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 10/1/2025 | | 3,000,000 | | 3,418,800 | |
| | 14,280,188 | |
Florida - 6.8% | | | | | |
Broward County,
Revenue Bonds | | 5.00 | | 10/1/2036 | | 2,000,000 | | 2,376,660 | |
Broward County,
Revenue Bonds, Ser. A | | 5.00 | | 10/1/2022 | | 3,605,000 | | 3,992,033 | |
8
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Florida - 6.8% (continued) | | | | | |
Citizens Property Insurance Corporation,
Revenue Bonds, Ser. A1 | | 5.00 | | 6/1/2025 | | 12,000,000 | | 14,112,720 | |
Florida Department of Transportation,
Revenue Bonds (Sunshine Skyway Bridge) Ser. A | | 4.00 | | 7/1/2033 | | 2,500,000 | | 2,853,725 | |
Florida Higher Educational Facilities Financial Authority,
Revenue Bonds, Refunding (Saint Leo University Project) | | 5.00 | | 3/1/2029 | | 1,635,000 | | 1,962,915 | |
Florida Municipal Power Agency,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 10/1/2024 | | 1,480,000 | | 1,739,725 | |
Florida Municipal Power Agency,
Revenue Bonds, Ser. A | | 5.00 | | 10/1/2030 | | 1,250,000 | | 1,475,512 | |
Hillsborough County,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 9/1/2026 | | 1,260,000 | | 1,518,199 | |
Lee County,
Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) | | 5.00 | | 10/1/2024 | | 2,500,000 | | 2,924,775 | |
Miami-Dade County,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 10/1/2026 | | 1,000,000 | | 1,107,700 | |
Miami-Dade County,
Revenue Bonds, Ser. A | | 5.75 | | 10/1/2028 | | 1,500,000 | | 1,735,695 | |
Orange County,
Revenue Bonds, Refunding, Ser. B | | 5.00 | | 10/1/2032 | | 3,275,000 | | 3,921,812 | |
South Miami Health Facilities Authority,
Revenue Bonds, Refunding (Baptist Health South Florida) | | 5.00 | | 8/15/2031 | | 1,750,000 | | 2,121,770 | |
| | 41,843,241 | |
Georgia - 2.8% | | | | | |
Atlanta,
Revenue Bonds, Refunding (Georgia Water and Wastewater Project) | | 5.00 | | 11/1/2031 | | 2,000,000 | | 2,363,560 | |
Atlanta Development Authority,
Revenue Bonds (New Downtown Atlanta Stadium Project) Ser. A1 | | 5.00 | | 7/1/2027 | | 1,000,000 | | 1,193,370 | |
DeKalb County,
Revenue Bonds, Refunding, Ser. B | | 5.25 | | 10/1/2025 | | 3,000,000 | | 3,681,810 | |
Fulton County Development Authority,
Revenue Bonds (Wellstar Health Systems) Ser. A | | 5.00 | | 4/1/2036 | | 1,350,000 | | 1,578,150 | |
9
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Georgia - 2.8% (continued) | | | | | |
Georgia Municipal Electric Authority,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 1/1/2028 | | 2,500,000 | | 2,933,600 | |
Main Street Natural Gas,
Revenue Bonds (Guaranty Agreement; Merrill Lynch and Co., Inc.) Ser. A | | 5.50 | | 9/15/2028 | | 2,530,000 | | 3,217,477 | |
Main Street Natural Gas,
Revenue Bonds, Ser. B, 1 Month LIBOR x .67 +.75% | | 2.42 | | 9/1/2023 | | 2,500,000 | c | 2,473,900 | |
| | 17,441,867 | |
Hawaii - .6% | | | | | |
Hawaii Airports System,
Revenue Bonds, Ser. A | | 5.00 | | 7/1/2031 | | 1,615,000 | | 1,969,961 | |
Hawaii Airports System,
Revenue Bonds, Ser. A | | 5.00 | | 7/1/2030 | | 1,500,000 | | 1,842,000 | |
| | 3,811,961 | |
Illinois - 13.0% | | | | | |
Chicago,
Revenue Bonds, Refunding | | 5.00 | | 11/1/2025 | | 1,200,000 | | 1,404,756 | |
Chicago,
Revenue Bonds, Refunding | | 5.00 | | 11/1/2027 | | 2,000,000 | | 2,364,580 | |
Chicago Board of Education,
GO, Refunding (Insured; Assured Guaranty Municipal Corporation) Ser. C | | 5.00 | | 12/1/2030 | | 2,500,000 | | 2,974,650 | |
Chicago O'Hare International Airport,
Revenue Bonds | | 5.50 | | 1/1/2026 | | 3,300,000 | | 3,747,711 | |
Chicago O'Hare International Airport,
Revenue Bonds, Refunding Ser. B | | 5.00 | | 1/1/2035 | | 3,000,000 | | 3,490,650 | |
Chicago O'Hare International Airport,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 1/1/2029 | | 4,000,000 | | 4,592,800 | |
Chicago O'Hare International Airport,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 1/1/2023 | | 3,530,000 | | 3,917,912 | |
Chicago Park District,
GO, Refunding, Ser. C | | 5.00 | | 1/1/2028 | | 1,000,000 | | 1,115,200 | |
Chicago Park District,
GO, Refunding, Ser. C | | 5.00 | | 1/1/2030 | | 2,060,000 | | 2,279,678 | |
Cook County,
GO, Refunding, Ser. A | | 5.25 | | 11/15/2033 | | 3,500,000 | | 3,649,660 | |
Greater Chicago Metropolitan Water Reclamation District,
GO, Refunding, Ser. A | | 5.00 | | 12/1/2031 | | 3,275,000 | | 3,874,914 | |
10
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Illinois - 13.0% (continued) | | | | | |
Illinois,
Revenue Bonds (Insured; Build America Mutual Assurance Company) Ser. A | | 5.00 | | 6/15/2030 | | 2,600,000 | | 3,037,788 | |
Illinois Finance Authority,
Revenue Bonds (Advocate Health Care Network) | | 5.00 | | 6/1/2028 | | 9,005,000 | | 10,099,378 | |
Illinois Finance Authority,
Revenue Bonds, Refunding (OFS Healthcare System) Ser. A | | 5.00 | | 11/15/2028 | | 1,205,000 | | 1,410,428 | |
Illinois Finance Authority,
Revenue Bonds, Refunding (Rush University Medical Center Obligated Group) Ser. B | | 5.00 | | 11/15/2033 | | 2,140,000 | | 2,423,892 | |
Illinois Toll Highway Authority,
Revenue Bonds, Refunding, Ser. A1 | | 5.00 | | 1/1/2025 | | 5,000,000 | | 5,099,450 | |
Metropolitan Pier & Exposition Authority,
Revenue Bonds, Refunding (McCormick Place Expansion Project) (Insured; National Public Finance Guarantee Corp.) | | 5.55 | | 6/15/2021 | | 1,000,000 | | 1,002,540 | |
Metropolitan Pier & Exposition Authority,
Revenue Bonds, Refunding (McCormick Place Expansion Project) Ser. B | | 5.00 | | 12/15/2028 | | 5,000,000 | | 5,332,450 | |
Railsplitter Tobacco Settlement Authority,
Revenue Bonds | | 5.00 | | 6/1/2028 | | 2,270,000 | | 2,693,196 | |
Railsplitter Tobacco Settlement Authority,
Revenue Bonds | | 5.25 | | 6/1/2021 | | 3,300,000 | | 3,521,166 | |
University of Illinois,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 4/1/2026 | | 7,595,000 | | 8,475,564 | |
University of Illinois,
Revenue Bonds, Ser. A | | 5.00 | | 4/1/2032 | | 3,655,000 | | 4,108,878 | |
| | 80,617,241 | |
Indiana - 2.5% | | | | | |
Indiana Finance Authority,
Revenue Bonds (CWA Authority Project) Ser. A | | 5.25 | | 10/1/2023 | | 2,500,000 | | 2,711,400 | |
Indiana Finance Authority,
Revenue Bonds, Refunding (Butler University Project) Ser. B | | 5.00 | | 2/1/2030 | | 1,400,000 | | 1,510,208 | |
Indiana Municipal Power Agency,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 1/1/2036 | | 3,000,000 | | 3,530,670 | |
11
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Indiana - 2.5% (continued) | | | | | |
Richmond Hospital Authority,
Revenue Bonds, Refunding (Reid Hospital Project) Ser. A | | 5.00 | | 1/1/2028 | | 2,440,000 | | 2,798,387 | |
Whiting,
Revenue Bonds (BP Products North America Inc. Project) | | 5.00 | | 11/1/2024 | | 4,000,000 | | 4,622,680 | |
| | 15,173,345 | |
Iowa - .7% | | | | | |
Iowa Finance Authority,
Revenue Bonds, Refunding (IOWA Fertilizer Co LLC) | | 3.13 | | 12/1/2022 | | 1,670,000 | | 1,690,040 | |
Iowa Finance Authority,
Revenue Bonds, Refunding (UnityPoint Health) Ser. E | | 5.00 | | 8/15/2032 | | 2,280,000 | | 2,644,070 | |
| | 4,334,110 | |
Kentucky - 2.7% | | | | | |
Kentucky Public Energy Authority,
Revenue Bonds, Ser. A | | 4.00 | | 4/1/2024 | | 6,000,000 | | 6,501,780 | |
Kentucky Public Energy Authority,
Revenue Bonds, Ser. B | | 4.00 | | 1/1/2025 | | 7,000,000 | | 7,688,310 | |
Pikeville,
Revenue Bonds, Refunding | | 6.25 | | 3/1/2023 | | 1,685,000 | | 1,800,119 | |
Pikeville,
Revenue Bonds, Refunding | | 6.25 | | 3/1/2021 | | 510,000 | d | 551,662 | |
| | 16,541,871 | |
Maryland - 1.1% | | | | | |
Maryland Economic Development Corporation,
Revenue Bonds (Purple Line Light Rail Project) (Green Bonds) | | 5.00 | | 3/31/2024 | | 1,000,000 | | 1,074,310 | |
Maryland Health & Higher Educational Facilities Authority,
Revenue Bonds, Refunding (Peninsula Regional Medical Center) | | 5.00 | | 7/1/2031 | | 1,740,000 | | 1,965,382 | |
Maryland Stadium Authority,
Revenue Bonds (Construction & Revitalization Program) | | 5.00 | | 5/1/2037 | | 3,090,000 | | 3,711,770 | |
| | 6,751,462 | |
Massachusetts - 3.9% | | | | | |
Commonwealth of Massachusetts,
GAN (Accelerated Bridge Program) Ser. A | | 5.00 | | 6/15/2026 | | 1,500,000 | | 1,802,460 | |
Commonwealth of Massachusetts,
GO, Ser. D | | 4.00 | | 5/1/2034 | | 3,500,000 | | 3,996,685 | |
12
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Massachusetts - 3.9% (continued) | | | | | |
Massachusetts Development Finance Agency,
Revenue Bonds, Refunding (Partners HealthCare System) | | 5.00 | | 7/1/2034 | | 2,630,000 | | 3,124,861 | |
Massachusetts Educational Financing Authority,
Revenue Bonds, Refunding, Ser. K | | 5.00 | | 7/1/2022 | | 6,645,000 | | 7,273,617 | |
Massachusetts Port Authority,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 7/1/2023 | | 2,000,000 | | 2,262,140 | |
Massachusetts School Building Authority,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 8/15/2024 | | 5,000,000 | | 5,558,400 | |
| | 24,018,163 | |
Michigan - 5.4% | | | | | |
Great Lakes Water Authority,
Revenue Bonds, Refunding, Ser. D | | 5.00 | | 7/1/2036 | | 5,000,000 | | 5,809,500 | |
Michigan Finance Authority,
Revenue Bonds, Refunding (Beaumont Health Credit Group) | | 5.00 | | 8/1/2025 | | 3,180,000 | | 3,688,100 | |
Michigan Finance Authority,
Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. C3 | | 5.00 | | 7/1/2030 | | 1,000,000 | | 1,151,750 | |
Michigan Finance Authority,
Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. D1 | | 5.00 | | 7/1/2023 | | 5,000,000 | | 5,680,750 | |
Michigan Finance Authority,
Revenue Bonds, Refunding (Oakwood Obligated Group) | | 5.00 | | 8/15/2030 | | 3,870,000 | | 4,328,247 | |
Michigan Finance Authority,
Revenue Bonds, Refunding (Trinity Health Credit Group) Ser. A | | 5.00 | | 12/1/2034 | | 2,000,000 | | 2,415,940 | |
Michigan Hospital Finance Authority,
Revenue Bonds, Refunding (Ascension Health Senior Credit Group) Ser. F | | 4.00 | | 6/1/2023 | | 2,500,000 | | 2,728,175 | |
Michigan Strategic Fund,
Revenue Bonds | | 5.00 | | 6/30/2031 | | 4,395,000 | | 5,307,841 | |
Utica Community Schools,
GO, Refunding (School Building & Site Project) | | 5.00 | | 5/1/2032 | | 940,000 | | 1,168,270 | |
Utica Community Schools,
GO, Refunding (School Building & Site Project) | | 5.00 | | 5/1/2031 | | 1,000,000 | | 1,247,890 | |
| | 33,526,463 | |
13
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Minnesota - .2% | | | | | |
Western Minnesota Municipal Power Agency,
Revenue Bonds, Ser. A | | 5.00 | | 1/1/2024 | | 1,000,000 | | 1,153,940 | |
Missouri - 3.4% | | | | | |
Missouri Development Finance Board,
Revenue Bonds, Refunding (Branson Landing Project) Ser. A | | 5.00 | | 6/1/2028 | | 1,495,000 | | 1,673,727 | |
Missouri Development Finance Board,
Revenue Bonds, Refunding (Branson Landing Project) Ser. A | | 5.00 | | 6/1/2030 | | 2,425,000 | | 2,704,142 | |
Missouri Health & Educational Facilities Authority,
Revenue Bonds, Refunding (CoxHealth) Ser. A | | 5.00 | | 11/15/2035 | | 3,705,000 | | 4,257,341 | |
Missouri Health & Educational Facilities Authority,
Revenue Bonds, Refunding (Mercy Health) Ser. A | | 5.00 | | 6/1/2025 | | 3,500,000 | | 4,168,430 | |
Missouri Health & Educational Facilities Authority,
Revenue Bonds, Refunding (Saint Luke's Health System, Inc.) | | 5.00 | | 11/15/2028 | | 1,300,000 | | 1,549,574 | |
Missouri Health & Educational Facilities Authority,
Revenue Bonds, Refunding (Saint Luke's Health System, Inc.) | | 5.00 | | 11/15/2026 | | 1,000,000 | | 1,200,020 | |
Missouri Joint Municipal Electric Utility Commission,
Revenue Bonds, Refunding (Iatan 2 Project) Ser. A | | 5.00 | | 1/1/2032 | | 1,550,000 | | 1,748,989 | |
Missouri Joint Municipal Electric Utility Commission,
Revenue Bonds, Refunding (Prairie State Project) Ser. A | | 5.00 | | 12/1/2030 | | 3,270,000 | | 3,817,889 | |
| | 21,120,112 | |
Nebraska - 1.5% | | | | | |
Public Power Generation Agency,
Revenue Bonds, Refunding (Whelan Energy Center Unit 2) | | 5.00 | | 1/1/2038 | | 1,000,000 | | 1,159,490 | |
Public Power Generation Agency,
Revenue Bonds, Refunding (Whelan Energy Center Unit 2) | | 5.00 | | 1/1/2030 | | 2,250,000 | | 2,590,425 | |
Public Power Generation Agency,
Revenue Bonds, Refunding (Whelan Energy Center Unit 2) | | 5.00 | | 1/1/2029 | | 4,750,000 | | 5,491,760 | |
| | 9,241,675 | |
14
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Nevada - .1% | | | | | |
Reno,
Revenue Bonds, Refunding (Reno Transportation Rail Access Project) | | 5.00 | | 6/1/2035 | | 500,000 | | 604,375 | |
New Jersey - 4.8% | | | | | |
New Jersey Economic Development Authority,
Revenue Bonds, Refunding, Ser. NN | | 5.00 | | 3/1/2028 | | 2,250,000 | | 2,452,590 | |
New Jersey Economic Development Authority,
Revenue Bonds, Refunding, Ser. WW | | 5.25 | | 6/15/2029 | | 1,400,000 | | 1,599,080 | |
New Jersey Economic Development Authority,
Revenue Bonds, Refunding, Ser. WW | | 5.25 | | 6/15/2031 | | 4,000,000 | | 4,528,360 | |
New Jersey Economic Development Authority,
Revenue Bonds, Refunding, Ser. XX | | 5.25 | | 6/15/2027 | | 2,500,000 | | 2,875,050 | |
New Jersey Higher Education Student Assistance Authority,
Revenue Bonds, Refunding, Ser. B | | 5.00 | | 12/1/2024 | | 2,400,000 | | 2,765,280 | |
New Jersey Tobacco Settlement Financing Corporation,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 6/1/2036 | | 2,175,000 | | 2,534,223 | |
New Jersey Tobacco Settlement Financing Corporation,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 6/1/2037 | | 3,150,000 | | 3,629,871 | |
New Jersey Turnpike Authority,
Revenue Bonds, Refunding, Ser. E | | 5.00 | | 1/1/2031 | | 1,250,000 | | 1,542,575 | |
Rutgers University,
GO, Refunding (The State of New Jersey) Ser. J | | 5.00 | | 5/1/2029 | | 6,840,000 | | 7,676,806 | |
| | 29,603,835 | |
New York - 6.5% | | | | | |
Metropolitan Transportation Authority,
Revenue Bonds, Refunding, Ser. D | | 5.00 | | 11/15/2030 | | 3,500,000 | | 4,249,105 | |
New York City,
GO, Ser. 1-I | | 5.00 | | 3/1/2025 | | 3,300,000 | | 3,832,092 | |
New York City,
GO, Ser. B1 | | 5.00 | | 12/1/2031 | | 3,750,000 | | 4,560,562 | |
15
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
New York - 6.5% (continued) | | | | | |
New York City Industrial Development Agency,
Revenue Bonds, Refunding (Transportation Infrastructure Properties, LLC Obligated Group) Ser. A | | 5.00 | | 7/1/2020 | | 3,035,000 | | 3,139,192 | |
New York City Transitional Finance Authority,
Revenue Bonds, Ser. I | | 5.00 | | 5/1/2028 | | 4,400,000 | | 4,984,628 | |
New York State Dormitory Authority,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 2/15/2025 | | 2,925,000 | | 3,403,998 | |
New York State Dormitory Authority,
Revenue Bonds, Refunding, Ser. C | | 5.00 | | 3/15/2032 | | 3,000,000 | | 3,456,270 | |
New York Transportation Development Corporation,
Revenue Bonds (Delta Air Lines-Laguardia Airport Terminals) | | 5.00 | | 1/1/2023 | | 3,580,000 | | 3,931,628 | |
New York Transportation Development Corporation,
Revenue Bonds (LaGuardia Airport Terminal B Redevelopment Project) Ser. A | | 5.00 | | 7/1/2034 | | 1,000,000 | | 1,113,820 | |
New York Transportation Development Corporation,
Revenue Bonds, Refunding (American Airlines Inc.) | | 5.00 | | 8/1/2026 | | 1,000,000 | | 1,056,780 | |
Suffolk Tobacco Asset Securitization Corporation,
Revenue Bonds, Ser. B | | 5.38 | | 6/1/2028 | | 735,000 | | 735,081 | |
Triborough Bridge & Tunnel Authority,
Revenue Bonds (MTA Bridges and Tunnels) Ser. B-2, 1 Month LIBOR x .67 +.35% | | 2.02 | | 12/3/2019 | | 2,500,000 | c | 2,501,225 | |
TSASC,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 6/1/2032 | | 3,000,000 | | 3,450,330 | |
| | 40,414,711 | |
North Carolina - .8% | | | | | |
North Carolina Medical Care Commission,
Revenue Bonds, Refunding (Vidant Health) | | 5.00 | | 6/1/2032 | | 2,500,000 | | 2,888,575 | |
North Carolina Turnpike Authority,
Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) | | 5.00 | | 1/1/2028 | | 1,500,000 | | 1,808,190 | |
| | 4,696,765 | |
16
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Ohio - .8% | | | | | |
Montgomery County,
Revenue Bonds (Miami Valley Hospital) Ser. A | | 5.75 | | 11/15/2022 | | 2,970,000 | | 3,128,331 | |
Ohio Hospital Facilities,
Revenue Bonds, Refunding (Cleveland Clinic Health Systems) Ser. A | | 5.00 | | 1/1/2031 | | 1,250,000 | | 1,548,125 | |
| | 4,676,456 | |
Oregon - .7% | | | | | |
Oregon Facilities Authority,
Revenue Bonds, Refunding (Legacy Health Project) Ser. A | | 5.00 | | 6/1/2035 | | 2,500,000 | | 2,936,450 | |
Port of Portland,
Revenue Bonds, Refunding (Portland International Airport) Ser. 23 | | 5.00 | | 7/1/2035 | | 1,000,000 | | 1,161,630 | |
| | 4,098,080 | |
Pennsylvania - 6.4% | | | | | |
Commonwealth Financing Authority,
Revenue Bonds | | 5.00 | | 6/1/2031 | | 2,500,000 | | 3,036,800 | |
Delaware Valley Regional Finance Authority,
Revenue Bonds (Insured; County Gtd.) Ser. B, MUNIPSA +.42% | | 1.84 | | 9/1/2022 | | 6,500,000 | c | 6,500,065 | |
Montgomery County Higher Education & Health Authority,
Revenue Bonds, Refunding (Thomas Jefferson University) | | 5.00 | | 9/1/2032 | | 1,000,000 | | 1,211,960 | |
Pennsylvania Higher Educational Facilities Authority,
Revenue Bonds, Refunding (University of Pennsylvania Health System) Ser. C | | 5.00 | | 8/15/2025 | | 1,700,000 | | 2,032,112 | |
Pennsylvania Housing Finance Agency,
Revenue Bonds, Refunding (Single-Family Housing) Ser. 114A | | 3.35 | | 10/1/2026 | | 1,750,000 | | 1,785,525 | |
Pennsylvania Turnpike Commission,
Revenue Bonds, Refunding | | 5.00 | | 12/1/2030 | | 1,595,000 | | 1,892,563 | |
Pennsylvania Turnpike Commission,
Revenue Bonds, Refunding | | 5.00 | | 12/1/2029 | | 3,405,000 | | 4,121,787 | |
Pennsylvania Turnpike Commission,
Revenue Bonds, Refunding | | 5.00 | | 12/1/2031 | | 2,400,000 | | 2,870,280 | |
Pennsylvania Turnpike Commission,
Revenue Bonds, Refunding, Ser. B | | 5.00 | | 6/1/2028 | | 3,250,000 | | 3,853,558 | |
Pennsylvania Turnpike Commission,
Revenue Bonds, Ser. B | | 5.00 | | 12/1/2031 | | 1,650,000 | | 1,938,750 | |
17
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Pennsylvania - 6.4% (continued) | | | | | |
Philadelphia Airport,
Revenue Bonds, Refunding, Ser. B | | 5.00 | | 7/1/2031 | | 1,000,000 | | 1,192,870 | |
Philadelphia School District,
GO, Refunding, Ser. C | | 5.00 | | 9/1/2021 | | 3,555,000 | | 3,694,320 | |
Philadelphia School District,
GO, Refunding, Ser. F | | 5.00 | | 9/1/2030 | | 2,490,000 | | 2,925,750 | |
Philadelphia School District,
GO, Refunding, Ser. F | | 5.00 | | 9/1/2026 | | 10,000 | d | 12,308 | |
Philadelphia School District,
GO, Ser. A | | 5.00 | | 9/1/2032 | | 2,000,000 | | 2,405,560 | |
| | 39,474,208 | |
South Carolina - .8% | | | | | |
South Carolina Ports Authority,
Revenue Bonds | | 5.00 | | 7/1/2031 | | 2,000,000 | | 2,446,920 | |
South Carolina Public Service Authority,
Revenue Bonds, Ser. C | | 5.00 | | 12/1/2025 | | 2,320,000 | | 2,705,259 | |
| | 5,152,179 | |
Tennessee - 1.4% | | | | | |
Greeneville Health & Educational Facilities Board,
Revenue Bonds, Refunding (Ballard Health Obligation Group) | | 5.00 | | 7/1/2032 | | 2,500,000 | | 2,783,775 | |
Tennessee Energy Acquisition Corporation,
Revenue Bonds | | 4.00 | | 11/1/2025 | | 3,500,000 | | 3,839,430 | |
Tennessee Energy Acquisition Corporation,
Revenue Bonds, Ser. A | | 5.25 | | 9/1/2026 | | 1,505,000 | | 1,797,181 | |
| | 8,420,386 | |
Texas - 7.5% | | | | | |
Arlington,
Special Tax Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) | | 5.00 | | 2/15/2034 | | 1,500,000 | | 1,719,615 | |
Central Texas Regional Mobility Authority,
Revenue Bonds, Ser. A | | 5.00 | | 1/1/2032 | | 1,350,000 | | 1,552,568 | |
Cypress-Fairbanks Independent School District,
GO, Ser. C | | 5.00 | | 2/15/2027 | | 5,000,000 | | 5,767,650 | |
Dallas & Fort Worth International Airport,
Revenue Bonds, Refunding, Ser. E | | 5.00 | | 11/1/2022 | | 4,000,000 | | 4,432,680 | |
Harris County,
GO, Refunding, Ser. A | | 5.00 | | 10/1/2027 | | 2,500,000 | | 3,006,900 | |
18
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Texas - 7.5% (continued) | | | | | |
Harris County-Houston Sports Authority,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 11/15/2028 | | 2,500,000 | | 2,880,525 | |
Harris County-Houston Sports Authority,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 11/15/2029 | | 2,325,000 | | 2,673,215 | |
Houston Independent School District,
GO, Refunding (Permanent School Fund Guarantee Program) | | 5.00 | | 2/15/2025 | | 2,000,000 | | 2,382,380 | |
Love Field Airport,
Revenue Bonds | | 5.00 | | 11/1/2024 | | 1,000,000 | | 1,162,850 | |
Lower Colorado River Authority,
Revenue Bonds, Refunding (LCRA Transmission Services Corporation Project) | | 5.00 | | 5/15/2032 | | 2,000,000 | | 2,509,300 | |
New Hope Cultural Educational Facilities Finance Corporation,
Revenue Bonds, Refunding (Children's Health System Project) Ser. A | | 5.00 | | 8/15/2029 | | 1,750,000 | | 2,151,730 | |
North Texas Tollway Authority,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 1/1/2031 | | 5,000,000 | | 5,794,950 | |
San Antonio,
Revenue Bonds, Refunding | | 5.00 | | 2/1/2028 | | 5,000,000 | | 5,595,400 | |
Tarrant County Cultural Education Facilities Finance Corporation,
Revenue Bonds, Refunding (Baylor Scott and White Health Project) Ser. A | | 5.00 | | 11/15/2031 | | 1,400,000 | | 1,655,206 | |
Texas Transportation Commission,
Revenue Bonds, Refunding, Ser. C | | 5.00 | | 8/15/2031 | | 2,500,000 | | 2,832,975 | |
| | 46,117,944 | |
U.S. Related - .8% | | | | | |
Puerto Rico Highway & Transportation Authority,
Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corporation) Ser. CC | | 5.25 | | 7/1/2036 | | 4,400,000 | | 4,807,660 | |
Utah - 1.4% | | | | | |
Salt Lake City,
Revenue Bonds, Ser. A | | 5.00 | | 7/1/2036 | | 5,000,000 | | 5,900,900 | |
Utah Transit Authority,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 6/15/2035 | | 2,645,000 | | 3,039,237 | |
| | 8,940,137 | |
Virginia - 1.3% | | | | | |
Richmond,
Revenue Bonds, Refunding | | 5.00 | | 1/15/2031 | | 4,095,000 | | 4,895,204 | |
19
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Virginia - 1.3% (continued) | | | | | |
Virginia Small Business Financing Authority,
Revenue Bonds | | 5.00 | | 7/1/2034 | | 2,900,000 | | 3,084,585 | |
| | 7,979,789 | |
Washington - 2.6% | | | | | |
Central Puget Sound Regional Transit Authority,
Revenue Bonds (Green Bonds) Ser. S1 | | 5.00 | | 11/1/2031 | | 1,250,000 | | 1,515,813 | |
King County Public Hospital District Number 1,
GO, Refunding (Valley Medical Center) | | 5.00 | | 12/1/2030 | | 6,930,000 | | 8,243,859 | |
Port of Seattle,
Revenue Bonds, Refunding, Ser. A | | 5.00 | | 8/1/2028 | | 2,485,000 | | 2,732,556 | |
Port of Seattle,
Revenue Bonds, Refunding, Ser. B | | 5.00 | | 3/1/2034 | | 2,000,000 | | 2,280,560 | |
Washington Convention Center Public Facilities District,
Revenue Bonds | | 5.00 | | 7/1/2033 | | 1,330,000 | | 1,608,090 | |
| | 16,380,878 | |
Wisconsin - 2.0% | | | | | |
Public Finance Authority,
Revenue Bonds (KU Campus Development Corporation - Central District Development Project) | | 5.00 | | 3/1/2036 | | 4,500,000 | | 5,274,450 | |
Wisconsin Health & Educational Facilities Authority,
Revenue Bonds, Refunding (Children's Hospital of Wisconsin, Inc.) | | 5.00 | | 8/15/2034 | | 1,835,000 | | 2,183,944 | |
Wisconsin Health & Educational Facilities Authority,
Revenue Bonds, Refunding (ProHealth Care, Inc. Obligated Group) | | 5.00 | | 8/15/2033 | | 2,250,000 | | 2,524,073 | |
20
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Long-Term Municipal Investments - 98.8% (continued) | | | | | |
Wisconsin - 2.0% (continued) | | | | | |
Wisconsin Health & Educational Facilities Authority,
Revenue Bonds, Refunding (UnityPoint Health) Ser. A | | 5.00 | | 12/1/2028 | | 1,890,000 | | 2,178,527 | |
| | 12,160,994 | |
Total Investments(cost $579,885,732) | | 98.8% | 610,350,687 | |
Cash and Receivables (Net) | | 1.2% | 7,693,304 | |
Net Assets | | 100.0% | 618,043,991 | |
a Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2019, these securities were valued at $1,131,900 or .18% of net assets.
b Security issued with a zero coupon. Income is recognized through the accretion of discount.
c Variable rate security—rate shown is the interest rate in effect at period end.
d These securities are prerefunded; the date shown represents the prerefunded date. 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.
| | |
Portfolio Summary (Unaudited)† | Value (%) |
Medical | 13.8 |
Transportation | 12.8 |
General Obligation | 11.9 |
Airport | 10.8 |
General | 9.9 |
Education | 8.3 |
Water | 6.4 |
School District | 4.7 |
Power | 4.6 |
Tobacco Settlement | 3.3 |
Utilities | 2.8 |
Development | 2.3 |
Student Loan | 1.6 |
Facilities | 1.6 |
Utility-Electric Revenue | 1.1 |
Lease Revenue | .9 |
Special Tax | .8 |
Nursing Homes | .6 |
Single Family Housing | .3 |
Pollution | .2 |
Prerefunded | .1 |
| | 98.8 |
† Based on net assets.
See notes to financial statements.
21
| | | | |
| |
Summary of Abbreviations(Unaudited) |
| |
ABAG | Association of Bay Area Governments | ACA | American Capital Access |
AGC | ACE Guaranty Corporation | AGIC | Asset Guaranty Insurance Company |
AMBAC | American Municipal Bond Assurance Corporation | ARRN | Adjustable Rate Receipt Notes |
BAN | Bond Anticipation Notes | BPA | Bond Purchase Agreement |
CIFG | CDC Ixis Financial Guaranty | COP | Certificate of Participation |
CP | Commercial Paper | DRIVERS | Derivative Inverse Tax-Exempt Receipts |
EDR | Economic Development Revenue | EIR | Environmental Improvement Revenue |
EURIBOR | Euro Interbank Offered Rate | FGIC | Financial Guaranty Insurance Company |
FHA | Federal Housing Administration | FHLB | Federal Home Loan Bank |
FHLMC | Federal Home Loan Mortgage Corporation | FNMA | Federal National Mortgage Association |
GAN | Grant Anticipation Notes | GIC | Guaranteed Investment Contract |
GNMA | Government National Mortgage Association | GO | General Obligation |
HR | Hospital Revenue | IDB | Industrial Development Board |
IDC | Industrial Development Corporation | IDR | Industrial Development Revenue |
LIBOR | London Interbank Offered Rate | LIFERS | Long Inverse Floating Exempt Receipts |
LOC | Letter of Credit | LOR | Limited Obligation Revenue |
LR | Lease Revenue | MERLOTS | Municipal Exempt Receipts Liquidity Option Tender |
MFHR | Multi-Family Housing Revenue | MFMR | Multi-Family Mortgage Revenue |
MUNIPSA | Securities Industry and Financial Markets Association Municipal Swap Index Yield | PCR | Pollution Control Revenue |
PILOT | Payment in Lieu of Taxes | P-FLOATS | Puttable Floating Option Tax-Exempt Receipts |
PUTTERS | Puttable Tax-Exempt Receipts | RAC | Revenue Anticipation Certificates |
RAN | Revenue Anticipation Notes | RAW | Revenue Anticipation Warrants |
RIB | Residual Interest Bonds | ROCS | Reset Options Certificates |
RRR | Resources Recovery Revenue | SAAN | State Aid Anticipation Notes |
SBPA | Standby Bond Purchase Agreement | SFHR | Single Family Housing Revenue |
SFMR | Single Family Mortgage Revenue | SOFRRATE | Secured Overnight Financing Rate |
SONYMA | State of New York Mortgage Agency | SPEARS | Short Puttable Exempt Adjustable Receipts |
SWDR | Solid Waste Disposal Revenue | TAN | Tax Anticipation Notes |
TAW | Tax Anticipation Warrants | TRAN | Tax and Revenue Anticipation Notes |
XLCA | XL Capital Assurance | | |
See notes to financial statements.
22
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2019
| | | | | | | |
| | | | | | |
| | | Cost | | Value | |
Assets ($): | | | | |
Investments in securities—See Statement of Investments | 579,885,732 | | 610,350,687 | |
Cash | | | | | 347,482 | |
Interest receivable | | 8,097,292 | |
Receivable for shares of Common Stock subscribed | | 12,104 | |
Prepaid expenses | | | | | 22,021 | |
| | | | | 618,829,586 | |
Liabilities ($): | | | | |
Due to BNY Mellon Investment Adviser, Inc. and affiliates—Note 3(b) | | 348,942 | |
Payable for shares of Common Stock redeemed | | 322,305 | |
Directors fees and expenses payable | | 17,775 | |
Accrued expenses | | | | | 96,573 | |
| | | | | 785,595 | |
Net Assets ($) | | | 618,043,991 | |
Composition of Net Assets ($): | | | | |
Paid-in capital | | | | | 585,343,245 | |
Total distributable earnings (loss) | | | | | 32,700,746 | |
Net Assets ($) | | | 618,043,991 | |
| | | | | |
Shares Outstanding | | |
(300 million shares of $.001 par value Common Stock authorized) | 45,057,824 | |
Net Asset Value Per Share ($) | | 13.72 | |
| | | | |
See notes to financial statements. | | | | |
23
STATEMENT OF OPERATIONS
Year Ended May 31, 2019
| | | | | | | |
| | | | | | |
| | | | | | |
Investment Income ($): | | | | |
Interest Income | | | 19,322,661 | |
Expenses: | | | | |
Management fee—Note 3(a) | | | 3,705,369 | |
Shareholder servicing costs—Note 3(b) | | | 603,888 | |
Professional fees | | | 85,915 | |
Directors’ fees and expenses—Note 3(c) | | | 72,766 | |
Registration fees | | | 33,538 | |
Custodian fees—Note 3(b) | | | 17,737 | |
Prospectus and shareholders’ reports | | | 15,829 | |
Loan commitment fees—Note 2 | | | 14,066 | |
Miscellaneous | | | 60,766 | |
Total Expenses | | | 4,609,874 | |
Less—reduction in fees due to earnings credits—Note 3(b) | | | (13,998) | |
Net Expenses | | | 4,595,876 | |
Investment Income—Net | | | 14,726,785 | |
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): | | |
Net realized gain (loss) on investments | 3,162,846 | |
Net realized gain (loss) on futures | (56,456) | |
Net Realized Gain (Loss) | | | 3,106,390 | |
Net unrealized appreciation (depreciation) on investments | | | 16,263,900 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 19,370,290 | |
Net Increase in Net Assets Resulting from Operations | | 34,097,075 | |
| | | | | | |
See notes to financial statements. | | | | | |
24
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | | | |
| | | | Year Ended May 31, |
| | | | 2019 | | 2018a | |
Operations ($): | | | | | | | | |
Investment income—net | | | 14,726,785 | | | | 17,136,360 | |
Net realized gain (loss) on investments | | 3,106,390 | | | | 4,120,497 | |
Net unrealized appreciation (depreciation)
on investments | | 16,263,900 | | | | (19,100,441) | |
Net Increase (Decrease) in Net Assets
Resulting from Operations | 34,097,075 | | | | 2,156,416 | |
Distributions ($): | |
Distributions to shareholders | | | (20,484,095) | | | | (21,951,265) | |
Capital Stock Transactions ($): | |
Net proceeds from shares sold | | | 40,293,709 | | | | 29,288,295 | |
Distributions reinvested | | | 16,746,803 | | | | 17,883,156 | |
Cost of shares redeemed | | | (96,679,523) | | | | (116,303,615) | |
Increase (Decrease) in Net Assets
from Capital Stock Transactions | (39,639,011) | | | | (69,132,164) | |
Total Increase (Decrease) in Net Assets | (26,026,031) | | | | (88,927,013) | |
Net Assets ($): | |
Beginning of Period | | | 644,070,022 | | | | 732,997,035 | |
End of Period | | | 618,043,991 | | | | 644,070,022 | |
Capital Share Transactions (Shares): | |
Shares sold | | | 3,014,193 | | | | 2,144,123 | |
Shares issued for distributions reinvested | | | 1,254,043 | | | | 1,315,448 | |
Shares redeemed | | | (7,236,268) | | | | (8,555,642) | |
Net Increase (Decrease) in Shares Outstanding | (2,968,032) | | | | (5,096,071) | |
| | | | | | | | | |
a Distributions to shareholders include $17,095,511 of distributions from investment income—net and $4,855,754 distributions from net realized gains. | |
See notes to financial statements.
| | | | | | | | |
25
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund’s financial statements.
| | | | | | | | | |
| | | | |
| | | |
| | | Year Ended May 31, |
| | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | | 13.41 | 13.80 | 14.13 | 13.87 | 13.96 |
Investment Operations: | | | | | | |
Investment income—neta | | .32 | .34 | .34 | .36 | .37 |
Net realized and unrealized
gain (loss) on investments | | .43 | (.29) | (.18) | .36 | (.09) |
Total from Investment Operations | | .75 | .05 | .16 | .72 | .28 |
Distributions: | | | | | | |
Dividends from investment income—net | | (.32) | (.34) | (.34) | (.36) | (.37) |
Dividends from net realized
gain on investments | | (.12) | (.10) | (.15) | (.10) | - |
Total Distributions | | (.44) | (.44) | (.49) | (.46) | (.37) |
Net asset value, end of period | | 13.72 | 13.41 | 13.80 | 14.13 | 13.87 |
Total Return (%) | | 5.79 | .31 | 1.22 | 5.27 | 2.00 |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | | .75 | .74 | .73 | .74 | .73 |
Ratio of net expenses
to average net assets | | .75 | .74 | .73 | .74 | .73 |
Ratio of net investment income
to average net assets | | 2.38 | 2.47 | 2.49 | 2.61 | 2.68 |
Portfolio Turnover Rate | | 17.02 | 14.39 | 14.47 | 13.98 | 19.54 |
Net Assets, end of period ($ x 1,000) | | 618,044 | 644,070 | 732,997 | 787,083 | 786,381 |
a Based on average shares outstanding.
See notes to financial statements.
26
NOTES TO FINANCIAL STATEMENTS
NOTE 1—Significant Accounting Policies:
BNY Mellon Intermediate Municipal Bond Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), is a diversified open-end management investment company. The fund’s investment objective is to seek the maximum amount of current income exempt from federal income tax as is consistent with the preservation of capital. BNY Mellon Investment Adviser, Inc. (the “Adviser”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Adviser, is the distributor of the fund’s shares, which are sold to the public without a sales charge.
Effective June 3, 2019, the fund changed its name from Dreyfus Intermediate Municipal Bond Fund, Inc. to BNY Mellon Intermediate Municipal Fund, Inc. In addition, The Dreyfus Corporation, the fund’s investment adviser and administrator, changed its name to “BNY Mellon Investment Adviser, Inc.”, MBSC Securities Corporation, the fund’s distributor, changed its name to “BNY Mellon Securities Corporation” and Dreyfus Transfer, Inc., the fund’s transfer agent, changed its name to “BNY Mellon Transfer, Inc.”
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The fundenters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown. The fund does not anticipate recognizing any loss related to these arrangements.
(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in
27
NOTES TO FINANCIAL STATEMENTS(continued)
active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:
Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the fund’s Board of Directors (the “Board”). 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 the following: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. All of the preceding securities are generally categorized within Level 2 of the fair value hierarchy.
The Service is engaged under the general oversight of the Board.
28
When market quotations or official closing prices are not readily available, or are determined not to accurately reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.
For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and such securities are generally categorized within Level 3 of the fair value hierarchy.
The following is a summary of the inputs used as of May 31, 2019in valuing the fund’s investments:
| | | | | |
| | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 -Significant Unobservable Inputs | Total |
Assets ($) | | | | |
Investments in Securities: | | | |
Municipal Bonds† | - | 610,350,687 | - | 610,350,687 |
† See Statement of Investments for additional detailed categorizations.
At May 31, 2019, there were no transfers between levels of the fair value hierarchy. It is the fund’s policy to recognize transfers between levels at the end of the reporting period.
(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Interest income, adjusted for accretion of discount and amortization of 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.
(c) Dividends and distributions 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 gains, if any, are normally declared and paid annually, but the fund may make
29
NOTES TO FINANCIAL STATEMENTS(continued)
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 gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
(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.
As of and during the period ended May 31, 2019, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended May 31, 2019, the fund did not incur any interest or penalties.
Each tax year in the four–year period ended May 31, 2019 remains subject to examination by the Internal Revenue Service and state taxing authorities.
At May 31, 2019, the components of accumulated earnings on a tax basis were as follows: undistributed tax-exempt income $907,463, undistributed ordinary income $195,114, undistributed capital gains $1,677,985 and unrealized appreciation $30,827,647.
The tax character of distributions paid to shareholders during the fiscal periods ended May 31, 2019 and May 31, 2018 were as follows: tax-exempt income $14,938,964 and $17,095,511, ordinary income $577,054 and $429,903, and long-term capital gains $4,968,077 and $4,425,851, respectively.
During the period ended May 31, 2019, as a result of permanent book to tax differences, primarily due to the tax treatment for amortization adjustments, the fund decreased total distributable earnings (loss) by $42,630 and increased paid-in capital by the same amount. Net assets and net asset value per share were not affected by this reclassification.
(e) New Accounting Pronouncements: In March 2017, the FASB issued Accounting Standards Update 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization On Purchased Callable Debt Securities (“ASU 2017-08”). The update shortens the amortization period for the premium on certain
30
purchased callable debt securities to the earliest call date. ASU 2017-08 will be effective for fiscal years beginning after December 15, 2018.
Also in August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The update provides guidance that modifies certain disclosure requirements for fair value measurements. ASU 2018-13 will be effective for fiscal years beginning after December 15, 2019. Management is currently assessing the potential impact of these changes to future financial statements.
NOTE 2—Bank Lines of Credit:
The fund participates with other long-term open-end funds managed by the Adviser in a $1.030 billion unsecured credit facility led by Citibank, N.A. (the “Citibank Credit Facility”) and a $300 million unsecured credit facility provided by The Bank of New York Mellon (the “BNYM Credit Facility”), a subsidiary of BNY Mellon and an affiliate of the Adviser, each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions (each, a “Facility”). The Citibank Credit Facility is available in two tranches: (i) Tranche A is in an amount equal to $830 million and is available to all long-term open-ended funds, including the fund, and (ii) Tranche B is in amount equal to $200 million and is available only to BNY Mellon Floating Rate Income Fund, a series of BNY Mellon Investment Funds IV, Inc. Prior to October 3, 2018, the unsecured credit facility with Citibank, N.A. was $830 million. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for Tranche A of the Citibank Credit Facility and the BNYM Credit Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended May 31, 2019, the fund did not borrow under the Facilities.
NOTE 3—Management Fee and Other Transactions with Affiliates:
(a)Pursuant to a management agreement with the Adviser, the management fee is computed at the annual rate of .60% of the value of the fund’s average daily net assets and is payable monthly. The Agreement provides that if in any fiscal year the aggregate expenses of the fund (excluding taxes, brokerage commissions, interest expense and extraordinary expenses) exceed 1½% of the value of the average daily net assets, the fund may deduct from the fees paid to the Adviser, or the Adviser will bear such excess expense. During the period ended May 31, 2019, there was no expenses reimbursement pursuant to the Agreement.
31
NOTES TO FINANCIAL STATEMENTS(continued)
(b) Under the Shareholder Services Plan, the fund reimburses the Distributor at an amount not to exceed an annual rate of .25% of the value of the fund’s average daily net assets for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended May 31, 2019, the fund was charged $372,896 pursuant to the Shareholder Services Plan.
The fund has arrangements with the transfer agent and the custodian whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset transfer agency and custody fees. For financial reporting purposes, the fund includes net earnings credits, if any, as an expense offset in the Statement of Operations.
The fund compensates BNY Mellon Transfer, Inc., a wholly-owned subsidiary of the Adviser, under a transfer agency agreement for providing transfer agency and cash management services for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended May 31, 2019, the fund was charged $152,839 for transfer agency services. These fees are included in Shareholder servicing costs in the Statement of Operations.
The fund compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets, geographic region and transaction activity. During the period ended May 31, 2019, the fund was charged $17,737 pursuant to the custody agreement. These fees were partially offset by earnings credits of $13,980.
The fund compensates The Bank of New York Mellon under a shareholder redemption draft processing agreement for providing certain services related to the fund’s check writing privilege. During the period ended May 31, 2019, the fund was charged $7,591 pursuant to the agreement, which is included in Shareholder servicing costs in the Statement of Operations. These fees were partially offset by earnings credits of $18.
During the period ended May 31, 2019, the fund was charged $12,449 for services performed by the Chief Compliance Officer and his staff. These fees are included in Miscellaneous in the Statement of Operations.
The components of “Due to BNY Mellon Investment Adviser, Inc. and affiliates” in the Statement of Assets and Liabilities consist of: management
32
fees $313,783, custodian fees $2,850, Chief Compliance Officer fees $4,090 and transfer agency fees $28,219.
(c) Each Board member also serves as a Board member of other funds in the BNY Mellon Family of Funds complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTE 4—Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding short-term securities and futures, during the period ended May 31, 2019, amounted to $104,262,261 and $138,252,089, respectively.
Derivatives:A derivative is a financial instrument whose performance is derived from the performance of another asset. Each type of derivative instrument that was held by the fund during the period ended May 31, 2019 is discussed below.
Futures:In the normal course of pursuing its investment objective, the fund is exposed to market risk, including interest rate risk,as a result of changes in value of underlying financial instruments. The fund invests in futures in order to manage its exposure to or protect against changes in the market. A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, these investments require initial margin deposits with a counterparty, which consist of cash or cash equivalents. The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations. When the contracts are closed, the fund recognizes a realized gain or loss which is reflected in the Statement of Operations. There is minimal counterparty credit risk to the fund with futures since they are exchange traded, and the exchange guarantees the futures against default. At May 31, 2019 there were no financial futures outstanding.
The following summarizes the average market value of derivatives outstanding duringthe period ended May 31, 2019:
| | | |
| | Average Market Value ($) |
Interest rate futures | | 751,442 |
| | |
At May 31, 2019, the cost of investments for federal income tax purposes was $579,523,040; accordingly, accumulated net unrealized appreciation on investments was $30,827,647, consisting of $31,126,111 gross unrealized appreciation and $298,464 gross unrealized depreciation.
33
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of BNY Mellon Intermediate Municipal Bond Fund, Inc. (formerly, Dreyfus Intermediate Municipal Bond Fund, Inc.)
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of BNY Mellon Intermediate Municipal Bond Fund, Inc. (the “Fund”) (formerly, Dreyfus Intermediate Municipal Bond Fund, Inc.), including the statement of investments, as of May 31, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund at May 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2019, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the BNY Mellon Family of Funds since at least 1957, but we are unable to determine the specific year.
New York, New York
July 25, 2019
34
IMPORTANT TAX INFORMATION(Unaudited)
In accordance with federal tax law, the fund hereby reports all the dividends paid from investment income-net during the fiscal year ended May 31, 2019 as “exempt-interest dividends” (not generally subject to regular federal income tax). Where required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any), capital gains distributions (if any) and tax-exempt dividends paid for the 2019 calendar year on Form 1099-DIV, which will be mailed in early 2020. Also, the fund hereby reports $.0128 per share as a short-term capital gain distribution and $.1102 per share as a long-term capital gain distribution paid on December 28, 2018.
35
BOARD MEMBERS INFORMATION(Unaudited)
INDEPENDENT BOARD MEMBERS
Joseph S. DiMartino (75)
Chairman of the Board (1995)
Principal Occupation During Past 5 Years:
· Corporate Director and Trustee (1995-present)
Other Public Company Board Memberships During Past 5 Years:
· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies, Director (1997-present)
No. of Portfolios for which Board Member Serves:120
———————
Joni Evans (77)
Board Member (2006)
Principal Occupation During Past 5 Years:
· Chief Executive Officer, www.wowOwow.com, an online community dedicated to women’s conversations and publications (2007-present)
· Principal, Joni Evans Ltd. (publishing) (2006-present)
No. of Portfolios for which Board Member Serves:21
———————
Joan Gulley (71)
Board Member (2017)
Principal Occupation During Past 5 Years:
· PNC Financial Services Group, Inc.(1993-2014), Executive Vice President and Chief Human Resources Officer and Executive Committee Member (2008-2014)
No. of Portfolios for which Board Member Serves:51
———————
Ehud Houminer (78)
Board Member (1994)
Principal Occupation During Past 5 Years:
· Board of Overseers at the Columbia Business School, Columbia
University (1992-present)
Trustee, Ben Gurion University
No. of Portfolios for which Board Member Serves: 51
———————
36
Alan H. Howard (59)
Board Member (2018)
Principal Occupation During Past 5 Years:
· Managing Partner of Heathcote Advisors LLC, a financial advisory services firm (2008 – present)
· President of Dynatech/MPX Holdings LLC (2012 – 2019), a global supplier and service provider of military aircraft parts, including Board Member of two operating subsidiaries, Dynatech International LLC and Military Parts Exchange LLC (2012-2019); Chief Executive Officer of an operating subsidiary, Dynatech International LLC (2013 – 2019)
· Senior Advisor, Rossoff & Co., an independent investment banking firm (2014 – present)
Other Public Company Board Memberships During Past 5 Years:
· Movado Group, a designer and manufacturer of watches, Director (1997-present)
No. of Portfolios for which Board Member Serves:21
———————
Robin A. Melvin (55)
Board Member (1995)
Principal Occupation During Past 5 Years:
· Co-chairman, Illinois Mentoring Partnership, non-profit organization dedicated to increasing the quantity and quality of mentoring services in Illinois; (2014-present; board member since 2013)
No. of Portfolios for which Board Member Serves:98
———————
Burton N. Wallack (68)
Board Member (2006)
Principal Occupation During Past 5 Years:
· President and Co-owner of Wallack Management Company, a real estate management
company (1987-present)
Board member, Mount Sinai Hospital (2017-present)
No. of Portfolios for which Board Member Serves:21
———————
Benaree Pratt Wiley (73)
Board Member (2015)
Principal Occupation During Past 5 Years:
· Principal, The Wiley Group, a firm specializing in strategy and business development (2005-present)
Other Public Company Board Memberships During Past 5 Years:
· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies, Director (2008-present)
No. of Portfolios for which Board Member Serves: 76
———————
37
BOARD MEMBERS INFORMATION (Unaudited) (continued)
INTERESTED BOARD MEMBER
Gordon J. Davis (77)
Board Member (2006)
Principal Occupation During Past 5 Years:
· Partner in the law firm of Venable LLP (2012-present)
Other Public Company Board Memberships During Past 5 Years:
· Consolidated Edison, Inc., a utility company, Director (1997-2014)
· The Phoenix Companies, Inc., a life insurance company, Director (2000-2014)
No. of Portfolios for which Board Member Serves:55
Gordon J. Davis is deemed to be an “interested person” (as defined under the Act) of the fund as a result of his affiliation with Venable LLP, which provides legal services to the fund.
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Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80. The address of the Board Members and Officers is c/o BNY Mellon Investment Adviser, Inc. 240 Greenwich Street, New York, New York 10166. Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from the Adviser free of charge by calling this toll free number: 1-800-373-9387.
William Hodding Carter III, Emeritus Board Member
Hans C. Mautner, Emeritus Board Member
38
OFFICERS OF THE FUND(Unaudited)
RENEE LAROCHE-MORRIS, President since January 2018.
President and a director of BNY Mellon Investment Adviser, Inc. since January 2018. She is an officer of 62 investment companies (comprised of 120 portfolios) managed by the Adviser. She is 47 years old and has been an employee of BNY Mellon since 2003.
JAMES WINDELS, Treasurer since November 2001.
Director- BNY Mellon Fund Administration, and an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. He is 60 years old and has been an employee of the Adviser since April 1985.
BENNETT A. MACDOUGALL, Chief Legal Officer since October 2015.
Chief Legal Officer of the Adviser and Associate General Counsel and Managing Director of BNY Mellon since June 2015; Director and Associate General Counsel of Deutsche Bank – Asset & Wealth Management Division from June 2005 to June 2015, and as Chief Legal Officer of Deutsche Investment Management Americas Inc. from June 2012 to May 2015. He is an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. He is 47 years old and has been an employee of the Adviser since June 2015.
DAVID DIPETRILLO, Vice President since January 2018.
Head of North America Product, BNY Mellon Investment Management since January 2018, Director of Product Strategy, BNY Mellon Investment Management from January 2016 to December 2017; Head of US Retail Product and Channel Marketing, BNY Mellon Investment Management from January 2014 to December 2015. He is an officer of 62 investment companies (comprised of 120 portfolios) managed by the Adviser. He is 41 years old and has been an employee of BNY Mellon since 2005.
JAMES BITETTO, Vice President since August 2005 and Secretary since February 2018.
Managing Counsel of BNY Mellon and Secretary of the Adviser, and an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. He is 52 years old and has been an employee of the Adviser since December 1996.
SONALEE CROSS, Vice President and Assistant Secretary since March 2018.
Counsel of BNY Mellon since October 2016; Associate at Proskauer Rose LLP from April 2016 to September 2016; Attorney at EnTrust Capital from August 2015 to February 2016; Associate at Sidley Austin LLP from September 2013 to August 2015. She is an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. She is 31 years old and has been an employee of the Adviser since October 2016.
DEIRDRE CUNNANE, Vice President and Assistant Secretary since March 2019.
Counsel of BNY Mellon since August 2018; Senior Regulatory Specialist at BNY Mellon Investment Management Services from February 2016 to August 2018; Trustee Associate at BNY Mellon Trust Company (Ireland) Limited from August 2013 to February 2016. She is an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. She is 29 years old and has been an employee of the Adviser since August 2018.
SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.
Managing Counsel of BNY Mellon since December 2017, Senior Counsel of BNY Mellon from March 2013 to December 2017. She is an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. She is 43 years old and has been an employee of the Adviser since March 2013.
JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.
Senior Managing Counsel of BNY Mellon, and an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. He is 54 years old and has been an employee of the Adviser since October 1990.
PETER M. SULLIVAN, Vice President and Assistant Secretary since March 2019.
Managing Counsel of BNY Mellon, and an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. He is 51 years old and has been an employee of the Adviser since April 2004.
39
OFFICERS OF THE FUND (Unaudited)(continued)
NATALYA ZELENSKY, Vice President and Assistant Secretary since March 2017.
Counsel of BNY Mellon since May 2016; Attorney at Wildermuth Endowment Strategy Fund/Wildermuth Advisory, LLC from November 2015 to May 2016 and Assistant General Counsel at RCS Advisory Services from July 2014 to November 2015. She is an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. She is 34 years old and has been an employee of the Adviser since May 2016.
GAVIN C. REILLY, Assistant Treasurer since December 2005.
Tax Manager - BNY Mellon Fund Administration, and an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. He is 50 years old and has been an employee of the Adviser since April 1991.
ROBERT S. ROBOL, Assistant Treasurer since August 2003.
Senior Accounting Manager- BNY Mellon Fund Administration, and an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. He is 55 years old and has been an employee of the Adviser since October 1988.
ROBERT SALVIOLO, Assistant Treasurer since July 2007.
Senior Accounting Manager – BNY Mellon Fund Administration, and an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. He is 52 years old and has been an employee of the Adviser since June 1989.
ROBERT SVAGNA, Assistant Treasurer since August 2005.
Senior Accounting Manager – BNY Mellon Fund Administration, and an officer of 63 investment companies (comprised of 143 portfolios) managed by the Adviser. He is 52 years old and has been an employee of the Adviser since November 1990.
JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.
Chief Compliance Officer of the Adviser, the BNY Mellon Family of Funds and BNY Mellon Funds Trust (63 investment companies, comprised of 143 portfolios). He is 62 years old and has served in various capacities with the Adviser since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.
CARIDAD M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016.
Anti-Money Laundering Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust since January 2016; from May 2015 to December 2015, Interim Anti-Money Laundering Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust and the Distributor; from January 2012 to May 2015, AML Surveillance Officer of the Distributor. She is an officer of 57 investment companies (comprised of 137 portfolios) managed by the Adviser. She is 50 years old and has been an employee of the Distributor since 1997.
40
NOTES
41
BNY Mellon Intermediate Municipal Bond Fund, Inc.
240 Greenwich Street
New York, NY 10286
Adviser
BNY Mellon Investment Adviser, Inc.
240 Greenwich Street
New York, NY 10286
Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
BNY Mellon Transfer, Inc.
240 Greenwich Street
New York, NY 10286
Distributor
BNY Mellon Securities Corporation
240 Greenwich Street
New York, NY 10286
Telephone Call your financial representative or 1-800-373-9387
Mail The BNY Mellon Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
E-mailSend your request toinfo@bnymellon.com
InternetInformation can be viewed online or downloaded atwww.bnymellonim.com/us
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-PORT. The fund’s Forms N-PORT are available on the SEC’s website atwww.sec.gov.
A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available atwww.bnymellonim.com/us and on the SEC’s website atwww.sec.gov and without charge, upon request, by calling 1-800-373-9387.
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© 2019 BNY Mellon Securities Corporation
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