| UNITED STATES |
| SECURITIES AND EXCHANGE COMMISSION |
| Washington, D.C. 20549 |
| FORM N-CSR |
| CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT |
| INVESTMENT COMPANIES |
| Investment Company Act file number 811-5021 |
| DREYFUS PREMIER SHORT 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 area code: (212) 922-6000 |
| Date of fiscal year end: | | 3/31 |
| Date of reporting period: | | 3/31/07 |
Item 1. Reports to Stockholders.
Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.
The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.
Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value
| Contents |
| |
| | | THE FUND |
| |
|
| 2 | | A Letter from the CEO |
| 3 | | Discussion of Fund Performance |
| 6 | | Fund Performance |
| 8 | | Understanding Your Fund’s Expenses |
| 8 | | Comparing Your Fund’s Expenses |
| | | With Those of Other Funds |
| 9 | | Statement of Investments |
| 20 | | Statement of Assets and Liabilities |
| 21 | | Statement of Operations |
| 22 | | Statement of Changes in Net Assets |
| 24 | | Financial Highlights |
| 26 | | Notes to Financial Statements |
| 33 | | Report of Independent Registered |
| | | Public Accounting Firm |
| 34 | | Important Tax Information |
| 35 | | Board Members Information |
| 37 | | Officers of the Fund |
| FOR MORE INFORMATION |
|
| | | Back Cover |
| Dreyfus Premier |
| Short-Intermediate |
| Municipal Bond Fund |
A LETTER FROM THE CEO
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Short-Intermediate Municipal Bond Fund, covering the 12-month period from April 1, 2006, through March 31, 2007.
Recent volatility in U.S. stock and bond markets has suggested to us that investors’ appetite for risk may be waning. Until late February 2007, the appetite for risk was relatively high, even in market sectors where the danger of fundamental deterioration was clear,such as “sub-prime”mort-gages. While overall valuation levels within the broad stock and bond markets seemed appropriate to us, prices of many lower-quality assets did not fully compensate investors for the risks they typically entail.
Heightened volatility sometimes signals a shift in the economy, but we do not believe this currently is the case.We continue to expect a mid-cycle economic slowdown and a monetary policy of “prolonged pause and eventual ease.”Tightness in the labor market should ease, with the unemployment rate driven somewhat higher by housing-related layoffs. While we believe there will be a gradual moderation of both CPI and PCE “core” inflation — a measure of underlying long-term inflation that generally excludes energy and food products — we expect the Federal Reserve Board to remain vigilant against inflation risks as it continues to closely monitor upcoming data. As always, your financial advisor can help you identify the investments that may help you potentially profit from these trends and maintain an asset allocation strategy that’s suited for your needs.
For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund’s Portfolio Manager.
Thank you for your continued confidence and support.
2
DISCUSSION OF FUND PERFORMANCE
Monica S. Wieboldt, Senior Portfolio Manager
How did Dreyfus Premier Short-Intermediate Municipal Bond Fund perform relative to its benchmark?
For the 12-month period ended March 31, 2007, the fund produced total returns of 2.39% for Class B shares and 3.37% for Class D shares.1 In comparison, the Lehman Brothers 3-Year Municipal Bond Index (the “Index”), the fund’s benchmark, provided a total return of 3.92% for the reporting period.2 In addition, the average total return for all funds reported in the Lipper Short Intermediate Municipal Debt Funds category was 3.28% .3
Municipal bonds fared relatively well during the reporting period as economic growth moderated, inflationary pressures subsided and short-term interest rates stabilized. The fund’s return lagged that of its benchmark due in part to its relatively short average duration. The fund’s Class D shares outperformed its Lipper category average for the reporting period.
What is the fund’s investment approach?
The fund seeks to maximize current income exempt from federal income tax to the extent consistent with the preservation of capital.To pursue this goal, the fund normally invests substantially all of its assets in municipal bonds that provide income exempt from federal personal income tax.The fund will invest only in municipal bonds rated investment grade or the unrated equivalent as determined by Dreyfus,but may continue to hold bonds which are subsequently downgraded to below investment grade.4 The fund invests primarily in municipal bonds with remaining maturities of five years or less and generally maintains a dollar-weighted average portfolio maturity of two to three years.
We may buy and sell bonds based on credit quality, market outlook and yield potential. In selecting municipal bonds for investment, we may assess the current interest-rate environment and the municipal bond’s potential volatility in different rate environments.We focus on
The Fund 3
DISCUSSION OF FUND PERFORMANCE (continued)
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 our changing views of the current interest-rate and market environment.We also may look to select bonds that are most likely to obtain attractive prices when sold.
What other factors influenced the fund’s performance?
Investors were concerned early in the reporting period that, despite steady increases in short-term interest rates by the Federal Reserve Board (the “Fed”), soaring energy prices in a growing economy might rekindle inflationary pressures. These fears subsided over the summer of 2006, when weakness in U.S. housing markets dampened U.S. economic growth. Oil and gas prices soon began to retreat from their highs, and the Fed refrained from further rate hikes over the remainder of the reporting period.
Municipal bonds generally rallied as inflation concerns waned.However, most of the market’s strength was concentrated among longer-term bonds, and shorter-term bond prices remained relatively unchanged. This disparity led to narrower yield differences along the market’s maturity range.At times, longer-term yields fell below shorter-term yields, a relatively unusual situation known as an “inverted yield curve.” These developments constrained the relative performance of short- to intermediate-term municipal bonds relative to longer-term bonds.
Municipal bond prices were supported by supply-and-demand factors. Although issuance of new municipal bonds surged toward the end of 2006, the increased supply was readily absorbed by robust investor demand, including non-traditional municipal bond investors such as hedge funds and leveraged institutional trading accounts.
4
We generally maintained the fund’s average duration in a range that was shorter than industry averages. The front-end of the yield curve (1-5 years) remained relatively flat during this period. The fund received additional incremental yield from high yield issues at the lower end of the investment-grade range. The fund received strong contributions from the housing and health care sectors, as well as bonds backed by the states’ settlement of litigation with U.S. tobacco companies. During the second half of the reporting period it seemed to us that most of the positive credit news—including positive cash balances and reduced debt—was priced into high yield municipal bonds, and we reduced the fund’s exposure to the sector.
What is the fund’s current strategy?
Although recent economic data confirms a slowing of the economy, the Fed remains hawkish on inflation.Therefore it is conceivable that it may leave short-term interest rates unchanged for some time. This could keep the front end of the yield curve relatively flat for the foreseeable future.Accordingly, we intend to continue to look for opportunities to lengthen the fund’s average duration and seek higher current yields.
April 16, 2007
| 1 | | Total return includes reinvestment of dividends and any capital gains paid, and does not take into |
| | | consideration the applicable contingent deferred sales charge imposed on redemptions in the case of |
| | | Class B shares. 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 taxable. |
| 2 | | SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital |
| | | gain distributions.The Lehman Brothers 3-Year Municipal Bond Index is an unmanaged total |
| | | return performance benchmark for the investment-grade, geographically unrestricted 3-year tax- |
| | | exempt bond market, consisting of municipal bonds with maturities of 2-4 years. Index returns do |
| | | not reflect the fees and expenses associated with operating a mutual fund. |
| 3 | | Source: Lipper Inc. |
| 4 | | The fund may continue to own investment grade bonds (at the time of purchase) which are |
| | | subsequently downgraded to below investment grade. |
The Fund 5
FUND PERFORMANCE
| † Source: Lipper Inc. |
| Past performance is not predictive of future performance. |
| The above graph compares a $10,000 investment made in Class B and Class D shares of Dreyfus Premier Short- |
| Intermediate Municipal Bond Fund on 3/31/97 to a $10,000 investment made in the Lehman Brothers 3-Year |
| Municipal Bond Index (the “Index”) on that date. All dividends and capital gain distributions are reinvested. |
| Performance for Class B shares represent the performance of the fund’s Class D shares for periods prior to |
| March 12, 2003 (the inception date for Class B shares), adjusted to reflect the applicable sales load for that class |
| and the applicable distribution/servicing fees thereafter. |
| The fund invests primarily in short-intermediate term municipal securities and maintains a portfolio with a weighted |
| average maturity ranging between 2 and 3 years.The fund’s performance shown in the line graph takes into account |
| fees and expenses.The Index is an unmanaged total return performance benchmark for the investment-grade, |
| geographically unrestricted 3-year tax-exempt bond market, consisting of municipal bonds with maturities of 2-4 |
| years, and does not take into account charges, fees and other expenses. 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. |
6
| Average Annual Total Returns as of 3/31/07 | | | | |
| |
| | | 1 Year | | 5 Years | | 10 Years |
| |
| |
| |
|
| Class B shares | | | | | | |
| with applicable redemption charge † | | (1.61)% | | 1.18% | | 3.27% |
| without redemption | | 2.39% | | 1.55% | | 3.27% |
| Class D shares | | 3.37% | | 2.32% | | 3.27% |
Past performance is not predictive of future performance.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. Performance for Class B shares assumes the conversion of Class B shares to Class D shares at the end of the sixth year following the date of purchase.
| † The maximum contingent deferred sales charge for Class B shares is 4%. After six years Class B shares convert to |
| Class D shares. |
The Fund 7
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 Dreyfus Premier Short-Intermediate Municipal Bond Fund from October 1, 2006 to March 31, 2007. 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 March 31, 2007 |
| | | Class B | | Class D |
| |
| |
|
| Expenses paid per $1,000 † | | $ 8.62 | | $ 3.82 |
| Ending value (after expenses) | | $1,010.00 | | $1,014.90 |
| 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 March 31, 2007 |
| | | Class B | | Class D |
| |
| |
|
| Expenses paid per $1,000 † | | $ 8.65 | | $ 3.83 |
| Ending value (after expenses) | | $1,016.36 | | $1,021.14 |
| † Expenses are equal to the fund’s annualized expense ratio of 1.72% for Class B, .76% for Class D; multiplied by |
| the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
8
STATEMENT OF INVESTMENTS
March 31, 2007
|
| Long-Term Municipal | | Coupon | | Maturity | | Principal | | |
| Investments—89.3% | | Rate (%) | | Date | | Amount ($) | | Value ($) |
| |
| |
| |
| |
|
| Alabama—2.1% | | | | | | | | |
| Choctaw County, | | | | | | | | |
| Limited Obligation School | | | | | | | | |
| Warrants (Insured; ACA) | | 3.63 | | 3/1/09 | | 1,125,000 | | 1,113,064 |
| Jefferson County, | | | | | | | | |
| Limited Obligation School | | | | | | | | |
| Warrants | | 5.00 | | 1/1/09 | | 2,000,000 | | 2,046,520 |
| Arizona—1.4% | | | | | | | | |
| Chandler Industrial Development | | | | | | |
| Authority, IDR (Intel | | | | | | | | |
| Corporation Project) | | 4.38 | | 12/1/10 | | 2,000,000 | | 2,031,760 |
| California—4.3% | | | | | | | | |
| California Statewide Communities | | | | | | |
| Development Authority, Revenue | | | | | | |
| (Kaiser Permanente) | | 3.88 | | 4/1/10 | | 5,000,000 | | 5,007,000 |
| Imperial Redevelopment Agency, | | | | | | |
| Subordinate Tax Allocation | | | | | | | | |
| Revenue (Imperial | | | | | | | | |
| Redevelopment Project) | | 4.50 | | 12/1/11 | | 1,300,000 | | 1,293,175 |
| Colorado—2.6% | | | | | | | | |
| Black Hawk, | | | | | | | | |
| Device Tax Revenue | | 5.00 | | 12/1/12 | | 760,000 | | 781,272 |
| Countrydale Metropolitan District | | | | | | |
| (LOC; Compass Bank) | | 3.50 | | 12/1/07 | | 3,000,000 | | 2,991,120 |
| Connecticut—.3% | | | | | | | | |
| Greenwich Housing Authority, | | | | | | | | |
| MFHR (Greenwich Close | | | | | | | | |
| Apartments) | | 6.05 | | 9/1/07 | | 330,000 | | 332,221 |
| Mohegan Tribe of Indians of | | | | | | | | |
| Connecticut Gaming Authority, | | | | | | |
| Priority Distribution Payment | | | | | | | | |
| Public Improvement Revenue | | 5.00 | | 1/1/08 | | 100,000 | | 100,817 |
| Florida—2.0% | | | | | | | | |
| Lee County Industrial Development | | | | | | |
| Authority, Healthcare | | | | | | | | |
| Facilities Revenue (Cypress | | | | | | | | |
| Cove at Healthpark Florida, | | | | | | | | |
| Inc. Project) | | 4.75 | | 10/1/08 | | 3,000,000 | | 3,002,700 |
The Fund 9
STATEMENT OF INVESTMENTS (continued)
| Long-Term Municipal | | Coupon | | Maturity | | Principal | | |
| Investments (continued) | | Rate (%) | | Date | | Amount ($) | | Value ($) |
| |
| |
| |
| |
|
| Georgia—2.5% | | | | | | | | |
| Development Authority of the City | | | | | | | | |
| of Milledgeville and Baldwin | | | | | | | | |
| County, Revenue (Georgia | | | | | | | | |
| College and State University | | | | | | | | |
| Foundation Property III, LLC | | | | | | | | |
| Student Housing System Project) | | 5.00 | | 9/1/07 | | 640,000 | | 642,758 |
| Development Authority of the City | | | | | | | | |
| of Milledgeville and Baldwin | | | | | | | | |
| County, Revenue (Georgia | | | | | | | | |
| College and State University | | | | | | | | |
| Foundation Property III, LLC | | | | | | | | |
| Student Housing System Project) | | 5.00 | | 9/1/08 | | 835,000 | | 846,999 |
| Development Authority of the City | | | | | | | | |
| of Milledgeville and Baldwin | | | | | | | | |
| County, Revenue (Georgia | | | | | | | | |
| College and State University | | | | | | | | |
| Foundation Property III, LLC | | | | | | | | |
| Student Housing System Project) | | 5.00 | | 9/1/09 | | 1,045,000 | | 1,069,150 |
| Private Colleges and Universities | | | | | | | | |
| Authority, Student Housing | | | | | | | | |
| Revenue (Mercer Housing | | | | | | | | |
| Corporation Project) | | 6.00 | | 6/1/11 | | 1,140,000 | | 1,180,128 |
| Hawaii—.3% | | | | | | | | |
| Kuakini, | | | | | | | | |
| Health System Special Purpose | | | | | | | | |
| Revenue | | 5.00 | | 7/1/07 | | 430,000 | | 430,907 |
| Illinois—.7% | | | | | | | | |
| Illinois Housing Development | | | | | | | | |
| Authority, Housing Revenue | | 3.85 | | 7/1/09 | | 1,000,000 | | 998,520 |
| Indiana—1.5% | | | | | | | | |
| Indiana Development Finance | | | | | | | | |
| Authority, EIR (USX | | | | | | | | |
| Corporation Project) | | 5.25 | | 12/2/11 | | 2,000,000 | | 2,139,860 |
| Iowa—.7% | | | | | | | | |
| Coralville, | | | | | | | | |
| GO, Annual Appropriation | | | | | | | | |
| Corporate Purpose | | 5.00 | | 6/1/07 | | 1,000,000 | | 1,001,300 |
10
| Long-Term Municipal | | Coupon | | Maturity | | Principal | | |
| Investments (continued) | | Rate (%) | | Date | | Amount ($) | | Value ($) |
| |
| |
| |
| |
|
| Kansas—2.7% | | | | | | | | |
| Burlington, | | | | | | | | |
| EIR, Series A (Kansas City | | | | | | | | |
| Power and Light Company | | | | | | | | |
| Project) | | 4.75 | | 10/1/07 | | 1,000,000 | | 1,004,230 |
| Burlington, | | | | | | | | |
| EIR, Series B (Kansas City | | | | | | | | |
| Power and Light Company | | | | | | | | |
| Project) | | 4.75 | | 10/1/07 | | 2,000,000 | | 2,005,600 |
| Burlington, | | | | | | | | |
| EIR, Series D (Kansas City | | | | | | | | |
| Power and Light Company | | | | | | | | |
| Project) | | 4.75 | | 10/1/07 | | 1,000,000 | | 1,002,800 |
| Louisiana—2.2% | | | | | | | | |
| Louisiana Public Facilities | | | | | | | | |
| Authority, Revenue (Pennington | | | | | | |
| Medical Foundation Project) | | 4.00 | | 7/1/11 | | 1,000,000 | | 1,000,140 |
| Plaquemines Parish Law Enforcement | | | | | | |
| District, Certificates of | | | | | | | | |
| Indebtedness (Insured; FGIC) | | 4.00 | | 3/1/10 | | 1,095,000 | | 1,101,417 |
| Plaquemines Parish Law Enforcement | | | | | | |
| District, Certificates of | | | | | | | | |
| Indebtedness (Insured; FGIC) | | 4.50 | | 3/1/11 | | 1,145,000 | | 1,173,694 |
| Maine—1.5% | | | | | | | | |
| Maine Educational Loan Marketing | | | | | | |
| Corporation, Subordinate | | | | | | | | |
| Student Loan Revenue | | 6.50 | | 11/1/09 | | 2,195,000 | | 2,252,421 |
| Massachusetts—3.7% | | | | | | | | |
| Massachusetts Industrial Finance | | | | | | |
| Agency, RRR (Ogden Haverhill | | | | | | |
| Project) | | 5.15 | | 12/1/07 | | 1,550,000 | | 1,560,525 |
| Massachusetts Industrial Finance | | | | | | |
| Agency, RRR (Ogden Haverhill | | | | | | |
| Project) | | 5.35 | | 12/1/10 | | 3,800,000 | | 3,954,546 |
| Michigan—1.1% | | | | | | | | |
| Michigan Hospital Finance | | | | | | | | |
| Authority, HR (Oakwood | | | | | | | | |
| Obligated Group) | | 5.00 | | 11/1/10 | | 1,500,000 | | 1,551,885 |
The Fund 11
STATEMENT OF INVESTMENTS (continued)
| Long-Term Municipal | | Coupon | | Maturity | | Principal | | |
| Investments (continued) | | Rate (%) | | Date | | Amount ($) | | Value ($) |
| |
| |
| |
| |
|
| Nebraska—2.1% | | | | | | | | |
| University of Nebraska Board of | | | | | | | | |
| Regents, Revenue (University | | | | | | | | |
| of Nebraska-Lincoln Memorial | | | | | | | | |
| Stadium Project) | | 5.00 | | 11/1/07 | | 3,035,000 | | 3,057,489 |
| New Jersey—4.1% | | | | | | | | |
| Bayonne, | | | | | | | | |
| BAN | | 4.75 | | 10/26/07 | | 1,000,000 | | 1,003,240 |
| Bayonne, | | | | | | | | |
| BAN | | 5.00 | | 10/26/07 | | 2,095,960 | | 2,104,763 |
| Bayonne Parking Authority, | | | | | | | | |
| Revenue (Parking Project Notes) | | 4.50 | | 6/15/07 | | 2,000,000 | | 2,001,360 |
| Tobacco Settlement Financing | | | | | | | | |
| Corporation of New Jersey, | | | | | | | | |
| Tobacco Settlement | | | | | | | | |
| Asset-Backed Bonds | | 4.25 | | 6/1/11 | | 1,000,000 | | 1,004,690 |
| New Mexico—1.9% | | | | | | | | |
| Farmington, | | | | | | | | |
| PCR (Southern California | | | | | | | | |
| Edison Company Four Corners | | | | | | | | |
| Project) (Insured; FGIC) | | 3.55 | | 4/1/10 | | 2,000,000 | | 1,987,340 |
| Jicarilla Apache Nation, | | | | | | | | |
| Revenue | | 4.00 | | 9/1/08 | | 765,000 | | 767,211 |
| New York—9.8% | | | | | | | | |
| New York City Housing Development | | | | | | |
| Corporation, MFHR | | 4.25 | | 5/1/10 | | 2,000,000 | | 2,016,920 |
| New York City Housing Development | | | | | | |
| Corporation, MFHR | | 3.95 | | 11/1/10 | | 4,500,000 | | 4,500,540 |
| New York City Industrial | | | | | | | | |
| Development Agency, Special | | | | | | | | |
| Facility Revenue (Terminal One | | | | | | | | |
| Group Association, L.P. | | | | | | | | |
| Project) | | 5.00 | | 1/1/08 | | 1,000,000 | | 1,008,990 |
| New York City Industrial | | | | | | | | |
| Development Agency, Special | | | | | | | | |
| Facility Revenue (Terminal One | | | | | | | | |
| Group Association, L.P. Project) | | 5.00 | | 1/1/10 | | 3,000,000 | | 3,093,090 |
| New York State Housing Finance | | | | | | | | |
| Agency, MFHR (Crotona Estates | | | | | | | | |
| Apartments) | | 3.95 | | 8/15/10 | | 1,085,000 | | 1,083,231 |
12
| Long-Term Municipal | | Coupon | | Maturity | | Principal | | |
| Investments (continued) | | Rate (%) | | Date | | Amount ($) | | Value ($) |
| |
| |
| |
| |
|
| New York (continued) | | | | | | | | |
| New York State Power Authority, | | | | | | | | |
| Revenue | | 5.00 | | 11/15/09 | | 2,000,000 | | 2,069,700 |
| Suffolk County Industrial | | | | | | | | |
| Development Agency, Continuing | | | | | | | | |
| Care Retirement Community | | | | | | | | |
| Revenue (Jefferson’s Ferry Project) | | 4.20 | | 11/1/08 | | 845,000 | | 846,707 |
| North Carolina—4.0% | | | | | | | | |
| Fayetteville Public Works | | | | | | | | |
| Commission, Revenue | | | | | | | | |
| (Insured; FSA) | | 3.55 | | 1/15/08 | | 1,695,000 | | 1,693,068 |
| North Carolina Medical Care | | | | | | | | |
| Commission, Health Care | | | | | | | | |
| Facilities First Mortgage | | | | | | | | |
| Revenue (Deerfield Episcopal | | | | | | | | |
| Retirement Community) | | 3.80 | | 11/1/09 | | 500,000 | | 495,010 |
| North Carolina Medical Care | | | | | | | | |
| Commission, Retirement | | | | | | | | |
| Facilities First Mortgage | | | | | | | | |
| Revenue (Cypress Glen | | | | | | | | |
| Retirement Community) | | 3.80 | | 10/1/07 | | 3,650,000 | | 3,633,575 |
| Ohio—8.6% | | | | | | | | |
| Cuyahoga County, | | | | | | | | |
| Housing Revenue (Riverside | | | | | | | | |
| Park Homes Project) | | 3.90 | | 11/1/09 | | 2,300,000 | | 2,296,688 |
| Hamilton County, | | | | | | | | |
| Local District Cooling | | | | | | | | |
| Facilities Revenue | | | | | | | | |
| (Trigen-Cinergy Solutions of | | | | | | | | |
| Cincinnati LLC Project) | | 4.60 | | 6/1/09 | | 2,000,000 | | 1,989,500 |
| Lorain County, | | | | | | | | |
| Hospital Facilities Revenue | | | | | | | | |
| and Improvement (Catholic | | | | | | | | |
| Healthcare Partners) | | 5.25 | | 10/1/07 | | 3,515,000 | | 3,540,589 |
| Ohio, | | | | | | | | |
| Common Schools GO | | 2.45 | | 9/14/07 | | 2,000,000 | | 1,984,840 |
| Ohio Water Development Authority, | | | | | | | | |
| PCR (The Cleveland Electric | | | | | | | | |
| Illuminating Company Project) | | 3.75 | | 10/1/08 | | 3,000,000 | | 2,988,510 |
The Fund 13
STATEMENT OF INVESTMENTS (continued)
| Long-Term Municipal | | Coupon | | Maturity | | Principal | | |
| Investments (continued) | | Rate (%) | | Date | | Amount ($) | | Value ($) |
| |
| |
| |
| |
|
| Oklahoma—2.7% | | | | | | | | |
| Oklahoma Development Finance | | | | | | | | |
| Authority, LR (Oklahoma State | | | | | | | | |
| System Higher Education) | | | | | | | | |
| (Insured; MBIA) | | 3.00 | | 12/1/08 | | 800,000 | | 789,272 |
| Tulsa County Independent School | | | | | | | | |
| District Number 1, Combined | | | | | | | | |
| Purpose (Insured; MBIA) | | 0.00 | | 8/1/07 | | 2,000,000 | | 1,975,280 |
| Tulsa County Independent School | | | | | | | | |
| District Number 5, Combined | | | | | | | | |
| Purpose | | 4.00 | | 7/1/08 | | 1,160,000 | | 1,165,371 |
| Pennsylvania—6.6% | | | | | | | | |
| Allegheny County Hospital | | | | | | | | |
| Development Authority, HR | | | | | | | | |
| (Jefferson Regional Medical | | | | | | | | |
| Center) | | 4.00 | | 5/1/07 | | 540,000 | | 539,968 |
| Allegheny County Hospital | | | | | | | | |
| Development Authority, HR | | | | | | | | |
| (Jefferson Regional Medical | | | | | | | | |
| Center) | | 4.10 | | 5/1/09 | | 525,000 | | 525,451 |
| Allegheny County Hospital | | | | | | | | |
| Development Authority, HR | | | | | | | | |
| (Jefferson Regional Medical | | | | | | | | |
| Center) | | 4.20 | | 5/1/10 | | 550,000 | | 551,485 |
| Delaware Valley Regional Finance | | | | | | | | |
| Authority, Local Government | | | | | | | | |
| Revenue (Insured; AMBAC) | | 0.89 | | 7/1/07 | | 2,000,000 a | | 1,996,660 |
| Philadelphia Hospitals and Higher | | | | | | | | |
| Education Facilities | | | | | | | | |
| Authority, HR (The Children’s | | | | | | | | |
| Hospital of Philadelphia | | | | | | | | |
| Project) | | 4.25 | | 7/1/11 | | 1,000,000 | | 1,018,850 |
| Philadelphia Hospitals and Higher | | | | | | | | |
| Education Facilities | | | | | | | | |
| Authority, Revenue (Jefferson | | | | | | | | |
| Health System) | | 5.00 | | 5/15/09 | | 1,795,000 | | 1,837,631 |
| Philadelphia Hospitals and Higher | | | | | | | | |
| Education Facilities | | | | | | | | |
| Authority, Revenue (Jefferson | | | | | | | | |
| Health System) | | 5.00 | | 5/15/09 | | 2,310,000 | | 2,370,730 |
14
| Long-Term Municipal | | Coupon | | Maturity | | Principal | | |
| Investments (continued) | | Rate (%) | | Date | | Amount ($) | | Value ($) |
| |
| |
| |
| |
|
| Pennsylvania (continued) | | | | | | | | |
| Pittsburgh Urban Redevelopment | | | | | | | | |
| Authority, MFHR (Lou Mason Jr. | | | | | | |
| Replacement Housing Facility | | | | | | | | |
| Project) | | 5.00 | | 12/1/07 | | 1,000,000 | | 1,000,350 |
| Rhode Island—.7% | | | | | | | | |
| Rhode Island Health and | | | | | | | | |
| Educational Building | | | | | | | | |
| Corporation, Hospital | | | | | | | | |
| Financing Revenue (Lifespan | | | | | | | | |
| Obligated Group Issue) | | 5.00 | | 5/15/11 | | 1,000,000 | | 1,038,410 |
| South Carolina—4.5% | | | | | | | | |
| Orangeburg Joint Governmental | | | | | | | | |
| Action Authority, Capital | | | | | | | | |
| Projects Sales and Use Tax | | | | | | | | |
| Revenue (Orangeburg County, | | | | | | | | |
| South Carolina Project) | | | | | | | | |
| (Insured; MBIA) | | 5.00 | | 4/1/12 | | 2,000,000 | | 2,115,420 |
| South Carolina Jobs—Economic | | | | | | | | |
| Development Authority, EDR | | | | | | | | |
| (Republic Services, Inc. Project) | | 3.25 | | 4/1/07 | | 4,000,000 | | 4,000,000 |
| Spartanburg, | | | | | | | | |
| Water System Revenue (Insured; | | | | | | |
| FSA) | | 4.00 | | 6/1/11 | | 500,000 | | 506,980 |
| Tennessee—3.7% | | | | | | | | |
| Johnson City Power Board, | | | | | | | | |
| Electric System, RAN | | 3.50 | | 9/1/10 | | 3,360,000 | | 3,343,133 |
| Memphis-Shelby County Airport | | | | | | | | |
| Authority, Special Facilities | | | | | | | | |
| Revenue (Federal Express | | | | | | | | |
| Corporation) | | 5.00 | | 9/1/09 | | 2,000,000 | | 2,035,220 |
| Texas—4.8% | | | | | | | | |
| Bexar County Health Facilities | | | | | | | | |
| Development Corporation, | | | | | | | | |
| Revenue (Army Retirement | | | | | | | | |
| Residence Foundation Project) | | 5.00 | | 7/1/11 | | 670,000 | | 691,554 |
| Houston, | | | | | | | | |
| Airport System Subordinate | | | | | | | | |
| Lien Revenue (Insured; FGIC) | | 6.00 | | 7/1/11 | | 4,200,000 | | 4,347,042 |
The Fund 15
STATEMENT OF INVESTMENTS (continued)
| Long-Term Municipal | | Coupon | | Maturity | | Principal | | |
| Investments (continued) | | Rate (%) | | Date | | Amount ($) | | Value ($) |
| |
| |
| |
| |
|
| Texas (continued) | | | | | | | | |
| Texas Municipal Gas Acquisition | | | | | | | | |
| and Supply Corporation I, Gas | | | | | | | | |
| Supply Revenue | | 3.91 | | 12/15/09 | | 2,000,000 a | | 2,002,500 |
| Virginia—3.7% | | | | | | | | |
| Hopewell, | | | | | | | | |
| Public Improvement | | 5.00 | | 7/15/09 | | 3,250,000 | | 3,261,635 |
| Peninsula Ports Authority, | | | | | | | | |
| Coal Terminal Revenue | | | | | | | | |
| (Dominion Terminal Associates | | | | | | |
| Project—DETC Issue) | | 3.30 | | 10/1/08 | | 1,135,000 | | 1,122,038 |
| Western Virginia Regional Jail | | | | | | | | |
| Authority, Regional Jail | | | | | | | | |
| Facility RAN | | 4.13 | | 12/1/09 | | 1,000,000 | | 1,008,960 |
| Washington—.7% | | | | | | | | |
| Washington, | | | | | | | | |
| COP (Department of Ecology) | | | | | | | | |
| (Insured; AMBAC) | | 4.50 | | 4/1/08 | | 1,000,000 | | 1,007,950 |
| Wisconsin—1.8% | | | | | | | | |
| Badger Tobacco Asset | | | | | | | | |
| Securitization Corporation, | | | | | | | | |
| Tobacco Settlement | | | | | | | | |
| Asset-Backed Bonds | | 5.50 | | 6/1/10 | | 1,500,000 | | 1,563,315 |
| Wisconsin Health and Educational | | | | | | |
| Facilities Authority, Revenue | | | | | | | | |
| (Froedtert and Community | | | | | | | | |
| Health, Inc. Obligated Group) | | 5.00 | | 4/1/10 | | 1,000,000 | | 1,034,470 |
| Total Long-Term | | | | | | | | |
| Municipal Investments | | | | | | | | |
| (cost $131,712,721) | | | | | | | | 131,633,255 |
16
| Short-Term Municipal | | Coupon | | Maturity | | Principal | | |
| Investments—5.3% | | Rate (%) | | Date | | Amount ($) | | Value ($) |
| |
| |
| |
| |
|
| Arizona—1.4% | | | | | | | | |
| The Industrial Development | | | | | | | | |
| Authorities of the City of | | | | | | | | |
| Tucson and the County of Pima, | | | | | | | | |
| Joint SFMR (GIC; Trinity | | | | | | | | |
| Funding Corporation and LOC: | | | | | | | | |
| FHLMC, FNMA and GNMA) | | 4.90 | | 8/3/07 | | 2,000,000 | | 2,005,420 |
| South Carolina—2.0% | | | | | | | | |
| South Carolina Association of | | | | | | | | |
| Governmental Organizations, | | | | | | | | |
| COP, TAN | | 4.25 | | 4/13/07 | | 3,000,000 | | 3,000,570 |
| U.S. Related—1.9% | | | | | | | | |
| Government Development Bank of | | | | | | | | |
| Puerto Rico, CP | | 4.10 | | 5/11/07 | | 2,766,000 | | 2,765,585 |
| Total Short-Term | | | | | | | | |
| Municipal Investments | | | | | | | | |
| (cost $7,771,928) | | | | | | | | 7,771,575 |
| |
| |
| |
| |
|
| |
| Total Investments (cost $139,484,649) | | | | | | 94.6% | | 139,404,830 |
| Cash and Receivables (Net) | | | | | | 5.4% | | 7,942,515 |
| Net Assets | | | | | | 100.0% | | 147,347,345 |
| |
| a Variable rate security—interest rate subject to periodic change. | | | | |
The Fund 17
STATEMENT OF INVESTMENTS (continued)
| Summary of Abbreviations | | | | |
| |
| ACA | | American Capital Access | | AGC | | ACE Guaranty Corporation |
| AGIC | | Asset Guaranty Insurance | | AMBAC | | American Municipal Bond |
| | | Company | | | | Assurance Corporation |
| ARRN | | Adjustable Rate Receipt Notes | | BAN | | Bond Anticipation Notes |
| BIGI | | Bond Investors Guaranty Insurance | | BPA | | Bond Purchase Agreement |
| CGIC | | Capital Guaranty Insurance | | CIC | | Continental Insurance |
| | | Company | | | | Company |
| CIFG | | CDC Ixis Financial Guaranty | | CMAC | | Capital Market Assurance |
| | | | | | | Corporation |
| COP | | Certificate of Participation | | CP | | Commercial Paper |
| EDR | | Economic Development Revenue | | EIR | | Environmental Improvement |
| | | | | | | Revenue |
| 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 | | FSA | | Financial Security Assurance |
| 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 |
| LOC | | Letter of Credit | | LOR | | Limited Obligation Revenue |
| LR | | Lease Revenue | | MBIA | | Municipal Bond Investors Assurance |
| | | | | | | Insurance Corporation |
| MFHR | | Multi-Family Housing Revenue | | MFMR | | Multi-Family Mortgage Revenue |
| PCR | | Pollution Control Revenue | | PILOT | | Payment in Lieu of Taxes |
| RAC | | Revenue Anticipation Certificates | | RAN | | Revenue Anticipation Notes |
| RAW | | Revenue Anticipation Warrants | | RRR | | Resources Recovery Revenue |
| SAAN | | State Aid Anticipation Notes | | SBPA | | Standby Bond Purchase Agreement |
| SFHR | | Single Family Housing Revenue | | SFMR | | Single Family Mortgage Revenue |
| SONYMA | | State of New York Mortgage Agency | | SWDR | | Solid Waste Disposal Revenue |
| TAN | | Tax Anticipation Notes | | TAW | | Tax Anticipation Warrants |
| TRAN | | Tax and Revenue Anticipation Notes | | XLCA | | XL Capital Assurance |
18
| Summary of Combined Ratings (Unaudited) | | |
| |
| Fitch | | or | | Moody’s | | or | | Standard & Poor’s | | Value (%)† |
| |
| |
| |
| |
| |
|
| AAA | | | | Aaa | | | | AAA | | 16.3 |
| AA | | | | Aa | | | | AA | | 17.7 |
| A | | | | A | | | | A | | 27.5 |
| BBB | | | | Baa | | | | BBB | | 21.3 |
| BB | | | | Ba | | | | BB | | .1 |
| F1 | | | | MIG1/P1 | | | | SP1/A1 | | 4.3 |
| Not Rated b | | | | Not Rated b | | | | Not Rated b | | 12.8 |
| | | | | | | | | | | 100.0 |
| † | | Based on total investments. |
| b | | Securities 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. |
The Fund 19
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2007
| | | Cost | | Value |
| |
| |
|
| Assets ($): | | | | |
| Investments in securities—See Statement of Investments | | 139,484,649 | | 139,404,830 |
| Cash | | | | 1,064,864 |
| Receivable for investment securities sold | | | | 5,176,333 |
| Interest receivable | | | | 1,913,356 |
| Receivable for shares of Beneficial Interest subscribed | | | | 51,740 |
| Prepaid expenses | | | | 26,833 |
| | | | | 147,637,956 |
| |
| |
|
| Liabilities ($): | | | | |
| Due to The Dreyfus Corporation and affiliates—Note 3(c) | | | | 88,821 |
| Payable for shares of Beneficial Interest redeemed | | | | 120,583 |
| Accrued expenses | | | | 81,207 |
| | | | | 290,611 |
| |
| |
|
| Net Assets ($) | | | | 147,347,345 |
| |
| |
|
| Composition of Net Assets ($): | | | | |
| Paid-in capital | | | | 154,383,047 |
| Accumulated net realized gain (loss) on investments | | | | (6,955,883) |
| Accumulated net unrealized appreciation | | | | |
| (depreciation) on investments | | | | (79,819) |
| |
| |
|
| Net Assets ($) | | | | 147,347,345 |
| |
| |
|
| |
| |
| Net Asset Value Per Share | | | | |
| | | Class B | | Class D |
| |
| |
|
| Net Assets ($) | | 838,773 | | 146,508,572 |
| Shares Outstanding | | 66,436 | | 11,603,224 |
| |
| |
|
| Net Asset Value Per Share ($) | | 12.63 | | 12.63 |
See notes to financial statements.
20
STATEMENT OF OPERATIONS
Year Ended March 31, 2007
|
| Investment Income ($): | | |
| Interest Income | | 6,074,724 |
| Expenses: | | |
| Management fee—Note 3(a) | | 832,235 |
| Distribution fees—Note 3(b) | | 172,945 |
| Shareholder servicing costs—Note 3(c) | | 88,500 |
| Professional fees | | 61,482 |
| Registration fees | | 51,315 |
| Custodian fees | | 22,946 |
| Prospectus and shareholders’ reports | | 19,026 |
| Trustees’ fees and expenses—Note 3(d) | | 5,114 |
| Loan commitment fees—Note 2 | | 946 |
| Miscellaneous | | 27,358 |
| Total Expenses | | 1,281,867 |
| Investment Income—Net | | 4,792,857 |
| |
|
| Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): |
| Net realized gain (loss) on investments | | (813,164) |
| Net unrealized appreciation (depreciation) on investments | | 1,480,718 |
| Net Realized and Unrealized Gain (Loss) on Investments | | 667,554 |
| Net Increase in Net Assets Resulting from Operations | | 5,460,411 |
See notes to financial statements.
The Fund 21
STATEMENT OF CHANGES IN NET ASSETS
| | | | | Year Ended March 31, |
| |
| |
|
| | | 2007 | | 2006 |
| |
| |
|
| Operations ($): | | | | |
| Investment income—net | | 4,792,857 | | 5,277,369 |
| Net realized gain (loss) on investments | | (813,164) | | (767,545) |
| Net unrealized appreciation | | | | |
| (depreciation) on investments | | 1,480,718 | | (606,931) |
| Net Increase (Decrease) in Net Assets | | | | |
| Resulting from Operations | | 5,460,411 | | 3,902,893 |
| |
| |
|
| Dividends to Shareholders from ($): | | | | |
| Investment income—net: | | | | |
| Class A shares | | — | | (302,414) |
| Class B shares | | (18,804) | | (19,036) |
| Class D shares | | (4,680,224) | | (4,908,831) |
| Class P shares | | — | | (37,680) |
| Total Dividends | | (4,699,028) | | (5,267,961) |
| |
| |
|
| Beneficial Interest Transactions ($): | | | | |
| Net proceeds from shares sold: | | | | |
| Class A shares | | — | | 11,375,494 |
| Class B shares | | 191,953 | | 194,514 |
| Class D shares | | 16,542,964 | | 52,130,717 |
| Class P shares | | — | | 673,808 |
| Dividends reinvested: | | | | |
| Class A shares | | — | | 265,501 |
| Class B shares | | 11,109 | | 14,650 |
| Class D shares | | 4,098,457 | | 4,179,336 |
| Class P shares | | — | | 20,726 |
| Cost of shares redeemed: | | | | |
| Class A shares | | — | | (24,838,172) |
| Class B shares | | (390,071) | | (975,398) |
| Class D shares | | (67,718,108) | | (85,457,803) |
| Class P shares | | — | | (3,525,705) |
| Increase (Decrease) in Net Assets | | | | |
| from Beneficial Interest Transactions | | (47,263,696) | | (45,942,332) |
| Total Increase (Decrease) in Net Assets | | (46,502,313) | | (47,307,400) |
| |
| |
|
| Net Assets ($): | | | | |
| Beginning of Period | | 193,849,658 | | 241,157,058 |
| End of Period | | 147,347,345 | | 193,849,658 |
22
| | | | | Year Ended March 31, |
| |
| |
|
| | | 2007 | | 2006 a |
| |
| |
|
| Capital Share Transactions: | | | | |
| Class A b | | | | |
| Shares sold | | — | | 899,259 |
| Shares issued for dividends reinvested | | — | | 21,007 |
| Shares redeemed | | — | | (1,968,299) |
| Net Increase (Decrease) in Shares Outstanding | | — | | (1,048,033) |
| |
| |
|
| Class B b | | | | |
| Shares sold | | 15,258 | | 15,432 |
| Shares issued for dividends reinvested | | 881 | | 1,159 |
| Shares redeemed | | (30,976) | | (77,122) |
| Net Increase (Decrease) in Shares Outstanding | | (14,837) | | (60,531) |
| |
| |
|
| Class D b | | | | |
| Shares sold | | 1,312,879 | | 4,132,328 |
| Shares issued for dividends reinvested | | 325,255 | | 330,674 |
| Shares redeemed | | (5,376,668) | | (6,762,831) |
| Net Increase (Decrease) in Shares Outstanding | | (3,738,534) | | (2,299,829) |
| |
| |
|
| Class P | | | | |
| Shares sold | | — | | 53,413 |
| Shares issued for dividends reinvested | | — | | 1,638 |
| Shares redeemed | | — | | (279,099) |
| Net Increase (Decrease) in Shares Outstanding | | — | | (224,048) |
| a | | On January 26, 2006, the fund’s Board of Directors approved, effective as of the close of business on March 24, |
| | | 2006 (the Effective Date) reclassifying all of the fund’s Class A and Class P shares as Class D shares of the fund. |
| b | | During the period ended March 31, 2007, 289 Class B shares representing $3,624 were automatically converted to |
| | | 289 Class D shares and during the period ended March 31, 2006, 12,053 Class B shares representing $152,888 |
| | | were automaticaly converted to 12,055 class A shares. |
| See notes to financial statements. |
The Fund 23
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.
| | | | | Year Ended March 31, | | |
| |
| |
| |
|
| Class B Shares | | 2007 | | 2006 | | 2005 | | 2004 | | 2003a |
| |
| |
| |
| |
| |
|
| Per Share Data ($): | | | | | | | | | | |
| Net asset value, beginning of period | | 12.57 | | 12.65 | | 12.93 | | 12.98 | | 13.06 |
| Investment Operations: | | | | | | | | | | |
| Investment income—net b | | .25 | | .19 | | .18 | | .22 | | .01 |
| Net realized and unrealized | | | | | | | | | | |
| gain (loss) on investments | | .05 | | (.08) | | (.28) | | (.05) | | (.08) |
| Total from Investment Operations | | .30 | | .11 | | (.10) | | .17 | | (.07) |
| Distributions: | | | | | | | | | | |
| Dividends from investment income—net | | (.24) | | (.19) | | (.18) | | (.22) | | (.01) |
| Dividends from net realized | | | | | | | | | | |
| gain on investments | | — | | — | | (.00)c | | — | | — |
| Total Distributions | | (.24) | | (.19) | | (.18) | | (.22) | | (.01) |
| Net asset value, end of period | | 12.63 | | 12.57 | | 12.65 | | 12.93 | | 12.98 |
| |
| |
| |
| |
| |
|
| Total Return (%) d | | 2.39 | | .88 | | (.74) | | 1.35 | | (.50)e |
| |
| |
| |
| |
| |
|
| Ratios/Supplemental Data (%): | | | | | | | | | | |
| Ratio of total expenses | | | | | | | | | | |
| to average net assets | | 1.72 | | 1.70 | | 1.65 | | 1.69 | | 1.83f |
| Ratio of net investment income | | | | | | | | | | |
| to average net assets | | 1.94 | | 1.50 | | 1.42 | | 1.67 | | 1.91f |
| Portfolio Turnover Rate | | 48.86 | | 45.00 | | 33.55 | | 38.06 | | 77.91 |
| |
| |
| |
| |
| |
|
| Net Assets, end of period ($ x 1,000) | | 839 | | 1,021 | | 1,795 | | 1,292 | | 106 |
| a | | From March 12, 2003 (commencement of initial offering) to March 31, 2003. |
| b | | Based on average shares outstanding at each month end. |
| c | | Amount represents less than $.01 per share. |
| d | | Exclusive of sales charge. |
| e | | Not annualized. |
| f | | Annualized. |
| See notes to financial statements. |
24
| | | | | Year Ended March 31, | | |
| |
| |
| |
|
| Class D Shares | | 2007 | | 2006a | | 2005 | | 2004 | | 2003 |
| |
| |
| |
| |
| |
|
| Per Share Data ($): | | | | | | | | | | |
| Net asset value, beginning of period | | 12.57 | | 12.66 | | 12.93 | | 12.98 | | 12.91 |
| Investment Operations: | | | | | | | | | | |
| Investment income—net b | | .36 | | .31 | | .30 | | .35 | | .43 |
| Net realized and unrealized | | | | | | | | | | |
| gain (loss) on investments | | .06 | | (.09) | | (.27) | | (.05) | | .08 |
| Total from Investment Operations | | .42 | | .22 | | .03 | | .30 | | .51 |
| Distributions: | | | | | | | | | | |
| Dividends from investment income—net | | (.36) | | (.31) | | (.30) | | (.35) | | (.44) |
| Dividends from net realized | | | | | | | | | | |
| gain on investments | | — | | — | | (.00)c | | — | | (.00)c |
| Total Distributions | | (.36) | | (.31) | | (.30) | | (.35) | | (.44) |
| Net asset value, end of period | | 12.63 | | 12.57 | | 12.66 | | 12.93 | | 12.98 |
| |
| |
| |
| |
| |
|
| Total Return (%) | | 3.37 | | 1.75 | | .26 | | 2.31 | | 3.99 |
| |
| |
| |
| |
| |
|
| Ratios/Supplemental Data (%): | | | | | | | | | | |
| Ratio of total expenses | | | | | | | | | | |
| to average net assets | | .76 | | .76 | | .74 | | .75 | | .72 |
| Ratio of net investment income | | | | | | | | | | |
| to average net assets | | 2.89 | | 2.44 | | 2.34 | | 2.68 | | 3.34 |
| Portfolio Turnover Rate | | 48.86 | | 45.00 | | 33.55 | | 38.06 | | 77.91 |
| |
| |
| |
| |
| |
|
| Net Assets, end of period ($ x 1,000) | | 146,509 | | 192,828 | | 223,267 | | 276,976 | | 321,379 |
| a | | On January 26, 2006, the fund’s Board of Directors approved, effective as of the close of business on March 24, |
| | | 2006 (the Effective Date) reclassifying all of the fund’s Class A and Class P shares as Class D shares of the fund. |
| b | | Based on average shares outstanding at each month end. |
| c | | Amount represents less than $.01 per share. |
| See notes to financial statements. |
The Fund 25
NOTES TO FINANCIAL STATEMENTS
NOTE 1—Significant Accounting Policies:
Dreyfus Premier Short-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 income tax as is consistent with the preservation of capital. The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).
On December 4, 2006, Mellon Financial and The Bank of New York Company, Inc. announced that they had entered into a definitive agreement to merge. The new company will be called The Bank of New York Mellon Corporation. As part of this transaction, Dreyfus would become a wholly-owned subsidiary of The Bank of New York Mellon Corporation.The transaction is subject to certain regulatory approvals and the approval of The Bank of New York Company, Inc.’s and Mellon Financial’s shareholders, as well as other customary conditions to closing. Subject to such approvals and the satisfaction of the other conditions, Mellon Financial and The Bank of New York Company, Inc. expect the transaction to be completed in the third quarter of 2007.
Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares. The fund is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Class B and Class D. Class B shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class B share redemptions made within six years of purchase and automatically convert to Class D shares after six years. Effective June 1, 2006, the fund no longer offers Class B shares, except in connection with dividend reinvestment and permitted exchanges of Class B shares. Class D shares are sold at net asset value per share directly by Dreyfus and through certain banks and
26
fund supermarkets, and as a part of certain wrap-fee programs. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The fund enters 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: Investments in 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.
On September 20, 2006, the Financial Accounting Standards Board (FASB) released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair
The Fund 27
NOTES TO FINANCIAL STATEMENTS (continued)
value, and requires additional disclosures about fair-value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Management does not believe that the application of this standard will have a material impact on the financial statements of the portfolio.
(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 accretion of discount and amortization 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.
The fund has an arrangement with the custodian bank whereby the fund receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits, if any, as an expense offset in the Statements of Operations.
(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.
(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.
28
On July 13, 2006, the FASB released FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the portfolio’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year.Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.
At March 31, 2007, the components of accumulated earnings on a tax basis were as follows: undistributed tax exempt income $89,038, accumulated capital losses $6,680,199 and unrealized depreciation $17,966. In addition, the fund had $337,537 of capital losses realized after October 31, 2006, which were deferred for tax purposes to the first day of the following fiscal year.
The accumulated capital loss carryover is available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to March 31, 2007. If not applied, $5,399,245 of the carryover expires in fiscal 2011, $44,004 expires in fiscal 2012, $278,375 expires in fiscal 2014 and $958,575 expires in fiscal 2015.
The tax character of distributions paid to shareholders during the fiscal periods ended March 31, 2007 and March 31, 2006 were as follows: tax exempt income of $4,699,028 and $5,267,961, respectively.
During the period ended March 31, 2007, as a result of permanent book to tax differences primarily due to the tax treatment of amorti-
The Fund 29
NOTES TO FINANCIAL STATEMENTS (continued)
zation adjustments, the fund decreased accumulated undistributed investment income-net by $93,829, increased accumulated net realized gain (loss) on investments by $59,930 and increased paid-in capital by $33,899. Net assets were not affected by this reclassification.
NOTE 2—Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $350 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 March 31, 2007, the fund did not borrow under the Facility.
NOTE 3—Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .50% of the value of the fund’s average daily net assets and is payable monthly. The Agreement provides that if in any full fiscal year the aggregate expenses, exclusive of taxes, brokerage fees, interest on borrowings, commitment fees and extraordinary expenses, exceed with respect to Class D shares, 1 1 / 2% of the value of the fund’s average daily net assets, attributable to Class D shares, the fund may deduct from payments to be made to the Manager, or the Manager will bear such excess expense. During the period ended March 31, 2007, there was no expense reimbursement pursuant to the Agreement.
During the period ended March 31, 2007, the Distributor retained $6,584 from CDSC on redemptions on the fund’s Class B shares.
(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Class B and Class D shares pay the Distributor for
30
distributing their shares at an annual rate of .75% of the value of the average daily net assets of Class B shares and .10% of the value of the average daily net assets of Class D shares. During the period ended March 31, 2007, Class B and Class D shares were charged $7,498 and $165,447, respectively, pursuant to the Plan.
(c) Under the Shareholder Services Plan, Class B shares pay the distributor at an annual rate of .25% of the value of the average daily net assets of Class B shares, for the provision of certain services.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding Class B shares and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended March 31, 2007, Class B shares was charged $2,499, 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 March 31, 2007, the fund was charged $54,129 pursuant to the transfer agency agreement.
During the period ended March 31, 2007, the fund was charged $4,089 for services performed by the Chief Compliance Officer.
The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consists of: management fees $63,080, Rule 12b-1 distribution plan fees $13,105, shareholder services plan fees $188, chief compliance officer fees $3,067 and transfer agency per account fees $9,380.
The Fund 31
NOTES TO FINANCIAL STATEMENTS (continued)
(d) Each Board member also serves as a Board member of other funds within the Dreyfus 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, during the period ended March 31, 2007, amounted to $77,094,690 and $133,750,468, respectively.
At March 31, 2007, the cost of investments for federal income tax purposes was $139,422,796, accordingly, accumulated net unrealized depreciation on investments was $17,966, consisting of $239,703 gross unrealized appreciation and $257,669 gross unrealized depreciation.
32
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Shareholders and Board of Directors
Dreyfus Premier Short-Intermediate Municipal Bond Fund
We have audited the accompanying statement of assets and liabilities of Dreyfus Premier Short-Intermediate Municipal Bond Fund, including the statement of investments, as of March 31, 2007, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the periods indicated therein.These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,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.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2007 by correspondence with the custodian.We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Premier Short-Intermediate Municipal Bond Fund at March 31, 2007, 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 the financial highlights for each of the indicated periods, in conformity with U.S. generally accepted accounting principles.
| New York, New York |
| May 18, 2007 |
The Fund 33
IMPORTANT TAX INFORMATION ( U n a u d i t e d )
In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended March 31, 2007 as “exempt-interest dividends” (not generally subject to federal income tax).
As required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any) and capital gain distributions (if any) paid for the 2007 calendar year on Form 1099-DIV and their portion of the fund’s exempt interest dividends paid for the 2007 calendar year on Form 1099-INT, both of which will be mailed by January 31, 2008.
34
BOARD MEMBERS INFORMATION ( U n a u d i t e d )
| Joseph S. DiMartino (63) |
| Chairman of the Board (1995) |
| Principal Occupation During Past 5 Years: |
| • Corporate Director and Trustee |
| Other Board Memberships and Affiliations: |
| • The Muscular Dystrophy Association, Director |
| • Century Business Services, Inc., a provider of outsourcing functions for small and medium size |
| companies, Director |
| • The Newark Group, a provider of a national market of paper recovery facilities, paperboard |
| mills and paperboard converting plants, Director |
| • Sunair Services Corporation, a provider of certain outdoor-related services to homes and |
| businesses, Director |
| No. of Portfolios for which Board Member Serves: 186 |
| |
| ——————— |
| Clifford L. Alexander, Jr. (73) |
| Board Member (1997) |
| Principal Occupation During Past 5 Years: |
| • President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present) |
| • Chairman of the Board of Moody’s Corporation (October 2000-October 2003) |
| Other Board Memberships and Affiliations: |
| • Mutual of America Life Insurance Company, Director |
| No. of Portfolios for which Board Member Serves: 65 |
| |
| ——————— |
| Lucy Wilson Benson (79) |
| Board Member (1990) |
| Principal Occupation During Past 5 Years: |
| • President of Benson and Associates, consultants to business and government (1980-present) |
| Other Board Memberships and Affiliations: |
| • The International Executive Services Corps., Director Emeritus |
| • Citizens Network for Foreign Affairs,Vice Chairperson |
| • Council on Foreign Relations, Member |
| • Lafayette College Board of Trustees,Trustee Emeritus |
| • Atlantic Council of the U.S., Director |
| No. of Portfolios for which Board Member Serves: 35 |
The Fund 35
BOARD MEMBERS INFORMATION (Unaudited) (continued)
| David W. Burke (70) |
| Board Member (1994) |
| Principal Occupation During Past 5 Years: |
| • Corporate Director and Trustee |
| Other Board Memberships and Affiliations: |
| • John F. Kennedy Library Foundation, Director |
| No. of Portfolios for which Board Member Serves: 77 |
| ——————— |
| Whitney I. Gerard (72) |
| Board Member (1989) |
| Principal Occupation During Past 5 Years: |
| • Partner of Chadbourne & Parke LLP |
| No. of Portfolios for which Board Member Serves: 33 |
| ——————— |
| George L. Perry (73) |
| Board Member (1990) |
| Principal Occupation During Past 5 Years: |
| • Economist and Senior Fellow at Brookings Institution |
| No. of Portfolios for which Board Member Serves: 33 |
| ——————— |
| 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 in c/o The Dreyfus Corporation, 200 Park Avenue, 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 Dreyfus free of charge by calling this toll free number: 1-800-554-4611. |
| Arthur A. Hartman, Emeritus Board Member |
36
OFFICERS OF THE FUND ( U n a u d i t e d )
J. DAVID OFFICER, President since December 2006.
Chief Operating Officer,Vice Chairman and a director of the Manager, and an officer of 89 investment companies (comprised of 186 portfolios) managed by the Manager. He is 58 years old and has been an employee of the Manager since April 1998.
MARK N. JACOBS, Vice President since March 2000.
Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. He is 60 years old and has been an employee of the Manager since June 1977.
MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since October 1991.
JAMES BITETTO, Vice President and Assistant Secretary since August 2005.
Associate General Counsel and Assistant Secretary of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since December 1996.
JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. She is 51 years old and has been an employee of the Manager since October 1988.
JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since June 2000.
JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. She is 44 years old and has been an employee of the Manager since February 1984.
JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since February 1991.
ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. He is 55 years old and has been an employee of the Manager since May 1986.
JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.
Associate General Counsel of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1990.
The Fund 37
OFFICERS OF THE FUND (Unaudited) (continued)
JAMES WINDELS, Treasurer since November 2001.
Director – Mutual Fund Accounting of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since April 1985.
ROBERT ROBOL, Assistant Treasurer since August 2005.
Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since October 1988.
ROBERT SVAGNA, Assistant Treasurer since December 2005.
Senior Accounting Manager – Equity Funds of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. He is 40 µyears old and has been an employee of the Manager since November 1990.
GAVIN C. REILLY, Assistant Treasurer since December 2005.
Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 90 investment companies (comprised of 202 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since April 1991.
JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.
Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (90 investment companies, comprised of 202 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon's Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 49 years old and has served in various capacities with the Manager since 1980, including manager of the firm's Fund Accounting Department from 1997 through October 2001.
WILLIAM GERMENIS, Anti-Money Laundering Compliance Officer since October 2002.
Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 86 investment companies (comprised of 198 portfolios) managed by the Manager. He is 36 years old and has been an employee of the Distributor since October 1998.
38
NOTES
For More Information
Telephone Call your financial representative or 1-800-554-4611
| Mail | | The Dreyfus Premier Family of Funds |
| | | 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 |
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-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.
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 12-month period ended June 30, 2006, is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.
© 2007 Dreyfus Service Corporation
Item 2. Code of Ethics.
The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.
Item 3. Audit Committee Financial Expert.
The Registrant's Board has determined that Joseph S. DiMartino, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Joseph S. DiMartino is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.
Item 4. Principal Accountant Fees and Services
(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $30,881 in 2006 and $30,881 in 2007.
(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2006 and $0 in 2007.
The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.
Note: For the second paragraph in each of (b) through (d) of this Item 4, certain of such services were not pre-approved prior to May 6, 2003, when such services were required to be pre-approved. On and after May 6, 2003, 100% of all services provided by the Auditor were pre-approved as required. For comparative purposes, the fees shown assume that all such services were pre-approved, including services that were not pre-approved prior to the compliance date of the pre-approval requirement.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $3,028 in 2006 and $3,261 in 2007. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.
The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.
(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $147 in 2006 and $132 in 2007. These services consisted of a review of the Registrant's anti-money laundering program.
The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.
Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.
Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $769,395 in 2006 and $722,002 in 2007.
Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates which were not pre-approved (not requiring pre-approval) is compatible with maintaining the Auditor's independence.
| Item 5. | | Audit Committee of Listed Registrants. |
| | | Not applicable. [CLOSED-END FUNDS ONLY] |
| Item 6. | | Schedule of Investments. |
| | | Not applicable. |
| Item 7. | | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management |
| | | Investment Companies. |
| | | Not applicable. [CLOSED-END FUNDS ONLY] |
| Item 8. | | Portfolio Managers of Closed-End Management Investment Companies. |
| | | Not applicable. [CLOSED-END FUNDS ONLY, beginning with reports for periods ended |
| | | on and after December 31, 2005] |
| Item 9. | | Purchases of Equity Securities by Closed-End Management Investment Companies and |
| | | Affiliated Purchasers. |
| | | Not applicable. [CLOSED-END FUNDS ONLY] |
| Item 10. | | Submission of Matters to a Vote of Security Holders. |
The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The
Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders.
Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.
Item 11. 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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Code of ethics referred to in Item 2.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(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 PREMIER SHORT INTERMEDIATE MUNICIPAL BOND FUND
| By: | | /s/ J. David Officer |
| | | J. David Officer |
| | | President |
| |
| Date: | | May 21, 2007 |
| |
| 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/ J. David Officer |
| | | J. David Officer |
| | | President |
| |
| Date: | | May 21, 2007 |
| |
| By: | | /s/ James Windels |
| | | James Windels |
| | | Treasurer |
| |
| Date: | | May 21, 2007 |
| |
| EXHIBIT INDEX |
| |
| | | (a)(1) | | Code of ethics referred to in Item 2. |
| |
| | | (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) |
Exhibit (a)(1)
[INSERT CODE OF ETHICS]
