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 811-6643
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
(Exact name of Registrant as specified in charter)
c/o The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
(Address of principal executive offices) (Zip code)
Mark N. Jacobs, Esq.
200 Park Avenue
New York, New York 10166
(Name and address of agent for service)
Registrant's telephone number, including (212) 922-6000
area code:
Date of fiscal year end: 03/31
Date of reporting period: 9/30/03
FORM N-CSR
Item 1. Reports to Stockholders.
Dreyfus
New Jersey Intermediate
Municipal Bond Fund
SEMIANNUAL REPORT September 30, 2003
The views expressed in this report reflect those of the portfolio manager only
through the end of the period covered and do not necessarily represent the views
of Dreyfus or any other person in the Dreyfus organization. Any such views are
subject to change at any time based upon market or other conditions and Dreyfus
disclaims any responsibility to update such views. These views may not be relied
on as investment advice and, because investment decisions for a Dreyfus fund are
based on numerous factors, may not be relied on as an indication of trading
intent on behalf of any Dreyfus fund.
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
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2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
15 Financial Highlights
16 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus New Jersey
Intermediate Municipal Bond Fund
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for Dreyfus New Jersey Intermediate Municipal Bond Fund
covers the six-month period from April 1, 2003, through September 30, 2003.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Scott Sprauer.
After a prolonged period of sluggish growth, the U.S. economy has shown signs of
sustainable improvement. However, investor uncertainty regarding the strength of
the recovery has produced heightened volatility in the tax-exempt fixed-income
market. After most areas of the municipal bond market experienced sharp declines
during the summer, prices generally bounced back in September.
Despite recent reductions in federal tax rates, we believe that municipal bonds
may become more attractive to certain investors if states and municipalities
continue to raise taxes to balance their budgets. As always, we encourage you to
talk with your financial advisor about ways to enjoy the benefits of tax-exempt
municipal bonds as market conditions evolve.
Thank you for your continued confidence and support.
Sincerely,
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
October 15, 2003
DISCUSSION OF FUND PERFORMANCE
Scott Sprauer, Portfolio Manager
How did Dreyfus New Jersey Intermediate Municipal Bond Fund perform relative to
its benchmark?
For the six-month period ended September 30, 2003, the fund achieved a total
return of 2.16% .(1) The Lehman Brothers 7-Year Municipal Bond Index (the
" Index" ), the fund's benchmark, achieved a total return of 3.21% for the same
period.(2) In addition, the average total return for all funds reported in the
Lipper Other States Intermediate Municipal Debt Funds category was 2.13%.(3
We attribute the fund's performance primarily to heightened market volatility
later in the reporting period, when evidence of stronger economic growth caused
investors to sell bonds, driving prices sharply lower. The fund's returns were
slightly higher than the Lipper category, primarily because of its focus on
high-quality bonds in the five- to seven-year maturity range.
What is the fund's investment approach?
The fund' s objective is to seek as high a level of income exempt from federal
and New Jersey state income taxes as is consistent with the preservation of
capital.
To pursue its goal, the fund normally invests substantially all of its assets in
municipal bonds that provide income exempt from federal and New Jersey state
personal income taxes. The dollar-weighted average maturity of the fund's
portfolio ranges between three and ten years. Although the fund currently
intends to invest only in investment-grade municipal bonds, or the unrated
equivalent as determined by Dreyfus, it has the ability to invest up to 20% of
its net assets in municipal bonds of below investment-grade credit quality.
The portfolio manager may buy and sell bonds based on credit quality, market
outlook and yield potential. In selecting municipal bonds for investment, the
portfolio manager may assess the current interest-rate environment and the
municipal bond's potential volatility in different
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
rate environments. The portfolio manager focuses on bonds with the potential to
offer attractive current income, typically looking for bonds that can provide
consistently attractive current yields or that are trading at competitive market
prices. A portion of the fund's assets may be allocated to "discount" bonds,
which are bonds that sell at a price below their face value, or to "premium"
bonds, which are bonds that sell at a price above their face value. The fund's
allocation to either discount bonds or to premium bonds will change along with
the portfolio manager's changing views of the current interest-rate and market
environment. The portfolio manager also may look to select bonds that are most
likely to obtain attractive prices when sold.
What other factors influenced the fund's performance?
The fund was primarily influenced by investors' changing expectations regarding
the direction of the U.S. economy and interest rates. At the start of the
reporting period, investors became more optimistic after the allied coalition
entered Iraq and major combat operations were quickly completed. Although a veil
of uncertainty was lifted from the economy, investors believed that the Federal
Reserve Board (the "Fed") would reduce short-term interest rates further. They
were not disappointed, as the Fed cut the federal funds rate by 25 basis points
in late June, driving short-term interest rates to a 45-year low of 1%.
Longer-term bond yields also fell through June, but more moderately than
short-term rates, producing attractive total returns.
In July, however, investor sentiment toward bonds turned sharply negative as
signs of more robust economic growth convinced many that the Fed's most recent
rate cut may have been its last of the current cycle. As a result, the municipal
bond market suffered its most severe one-month decline in its history before
rebounding more moderately in late August and September.
Despite evidence of impending economic growth, most states and municipalities
continued to experience fiscal pressures during the reporting period. After
difficult negotiations in the state legislature, New Jersey balanced its $24
billion budget for fiscal year 2004 through a combination of spending cuts and
tax increases. Nonetheless, one of the major credit-rating agencies assigned New
Jersey a "negative outlook," citing concerns regarding low reserves,
non-recurring revenues and deficit bond financing.
In this volatile bond market environment, we maintained the fund's average
duration in a range we consider slightly longer than the peer group average.
This positioning helped the fund's performance while interest rates fell during
the reporting period's first half, but it hurt when bond yields spiked upward in
July. Our security selection strategy generally was conservative, focusing on
highly-rated, income-oriented bonds that historically have held their value
during market declines. In addition, bonds in the five- to seven-year maturity
range proved to be particularly beneficial: wide yield differences among such
bonds made them more valuable as they approached their final maturities over
time.
What is the fund's current strategy?
In the wake of the market' s recent volatility and amid lingering economic
uncertainty, we have continued to maintain a cautious investment posture.
Approximately 85% of the fund's holdings are rated double-A or better, and its
portfolio contains relatively few corporate-backed bonds. In addition, we have
avoided unsecured exposure to the state's general obligation bonds in the fund,
preferring insured securities and bonds backed by revenues from
essential-services facilities.(4) We believe that these are prudent strategies
until we see more convincing evidence that New Jersey is benefiting from renewed
economic growth.
October 15, 2003
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES FOR NON-NEW JERSEY RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE
FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF
ANY, ARE FULLY TAXABLE.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE LEHMAN BROTHERS 7-YEAR MUNICIPAL
BOND INDEX IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK FOR THE
INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED 7-YEAR TAX-EXEMPT BOND MARKET,
CONSISTING OF MUNICIPAL BONDS WITH MATURITIES OF 6-8 YEARS.
(3) SOURCE: LIPPER INC. -- CATEGORY AVERAGE RETURNS REFLECT THE FEES AND
EXPENSES OF THE FUNDS COMPRISING THE AVERAGE.
(4) INSURANCE ON INDIVIDUAL SECURITIES EXTENDS TO THE REPAYMENT OF PRINCIPAL
AND THE PAYMENT OF INTEREST IN THE EVENT OF DEFAULT. IT DOES NOT EXTEND TO THE
MARKET VALUE OF THE FUND'S SECURITIES OR THE VALUE OF THE FUND'S SHARES.
The Fund
STATEMENT OF INVESTMENTS
September 30, 2003 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
LONG-TERM MUNICIPAL INVESTMENTS--97.4% Amount ($) Value ($)
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NEW JERSEY--91.7%
Atlantic City Board of Education:
5.50%, 12/1/2008 (Insured; FSA, Guaranteed;
School Board Reserve Fund) 1,250,000 1,445,512
6%, 12/1/2013 (Insured; FSA, Guaranteed;
School Board Reserve Fund) 3,205,000 3,854,109
Bayshore Regional Sewer Authority,
Subordinated Sewer Revenue:
5.30%, 4/1/2008 (Insured; MBIA) 1,000,000 1,112,270
5.40%, 4/1/2009 (Insured; MBIA)
(Prerefunded 4/1/2006) 1,000,000 (a) 1,119,070
Bergen County Utilities Authority, Water Pollution Control
Revenue 5.375%, 12/15/2013 (Insured; FGIC) 1,155,000 1,300,911
Brick Township Municipal Utilities Authority,
Water and Sewer Revenue
5.10%, 12/1/2009 (Insured; FGIC) 1,500,000 1,676,985
Burlington County Bridge Commission, LR
(Governmental Leasing Program):
5.25%, 8/15/2016 1,100,000 1,216,105
5.25%, 8/15/2017 1,000,000 1,098,440
Camden County Improvement Authority, Revenue,
County Guaranteed Lease
5.85%, 10/1/2006 (Insured; MBIA)
(Prerefunded 10/1/2004) 1,000,000 (a) 1,067,810
Camden County Municipal Utilities Authority,
County Agreement Sewer Revenue
5%, 7/15/2009 (Insured; FGIC) 3,200,000 3,552,736
Cape May County Municipal Utilities Authority
5.75%, 1/1/2016 (Insured; FSA) 2,000,000 2,362,920
Delaware River and Bay Authority, Revenue:
5.25%, 1/1/2017 (Insured; MBIA) 1,160,000 1,283,911
5.25%, 1/1/2019 (Insured; MBIA) 2,390,000 2,608,374
Freehold Regional High School:
5.50%, 3/1/2009 (Insured; FGIC, Guaranteed;
School Board Reserve Fund) 1,450,000 1,672,415
5.50%, 3/1/2010 (Insured; FGIC, Guaranteed;
School Board Reserve Fund) 2,460,000 2,843,957
Hoboken Parking Utilities
5.25%, 1/1/2018 (Insured; FGIC) 3,210,000 3,513,666
Hudson County Improvement Authority,
Facility Lease Revenue (Hudson County Lease Project)
5.25%, 10/1/2012 (Insured; FGIC) 2,795,000 3,125,788
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
Jersey City:
Public Improvement 5.25%, 9/1/2010 (Insured; MBIA)
(Prerefunded 9/1/2009) 1,605,000 (a) 1,856,632
Water 5.20%, 10/1/2008 (Insured; AMBAC) 1,565,000 1,760,860
Lacey Municipal Utilities Authority, Water Revenue
5.10%, 12/1/2003 (Insured; MBIA) 800,000 805,544
Middlesex County Utilities Authority, Sewer Revenue
6.25%, 8/15/2010 (Insured; MBIA) 1,500,000 1,759,755
Monmouth County 5.10%, 10/1/2010 2,600,000 2,845,908
City of Newark Board of Education
5.875%, 12/15/2006 (Insured; MBIA)
(Prerefunded 12/15/2004) 1,755,000 (a) 1,891,416
New Jersey Economic Development Authority, Revenue:
Department of Human Services
5.75%, 7/1/2014 1,080,000 1,227,312
District Heating and Cooling (Trenton-Trigen Project)
6.10%, 12/1/2004 1,305,000 1,310,625
Economic Development
(Masonic Charity Foundation) 5%, 6/1/2018 1,680,000 1,771,913
Market Transition Facility Revenue
7%, 7/1/2004 (Insured; MBIA) 1,000,000 1,044,200
(Motor Vehicle Commission)
Zero Coupon, 7/1/2014 (Insured; MBIA) 2,500,000 1,587,375
School Facilities, Construction:
5.50%, 6/15/2011 (Insured; AMBAC) 2,500,000 2,892,325
5.25%, 6/15/2016 (Insured; AMBAC) 4,500,000 4,967,640
(Transportation Project Sublease)
5.25%, 5/1/2011 (Insured; FSA) 2,210,000 2,508,483
Waste Paper Recycling (MPMI Inc. Project)
5.75%, 2/1/2004 555,000 552,281
New Jersey Educational Facilities Authority, Revenue:
College and University:
(College of New Jersey)
5.375%, 7/1/2017 (Insured; FGIC) 1,300,000 1,446,562
(Princeton University):
5.125%, 7/1/2012 1,550,000 1,715,757
5.25%, 7/1/2014 2,885,000 3,184,319
(Seton Hall University):
5.25%, 7/1/2006 (Insured; AMBAC) 2,030,000 2,239,983
5.25%, 7/1/2009 (Insured; AMBAC) 1,050,000 1,200,150
Public Library Project Grant Issue
5.50%, 9/1/2017 (Insured; AMBAC) 1,500,000 1,688,310
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
New Jersey Health Care Facilities Financing Authority,
Health Hospital and Nursing Home Revenue:
(Atlantic City Medical Center) 6%, 7/1/2012 3,145,000 3,548,441
(Deborah Heart and Lung Center):
5.80%, 7/1/2004 745,000 757,628
5.90%, 7/1/2005 790,000 807,072
(Raritan Bay Medical Center Issue)
6.625%, 7/1/2005 2,800,000 2,894,472
(Robert Wood Johnson University Center):
5%, 7/1/2008 (Insured; MBIA) 1,500,000 1,653,270
5.375%, 7/1/2013 2,000,000 2,171,060
(Saint Joseph's Hospital and Medical Center)
5.15%, 7/1/2006 (Insured; Connie Lee) 2,555,000 2,776,237
(Somerset Medical Center) 5.50%, 7/1/2018 4,155,000 4,269,844
(South Jersey Hospital) 6%, 7/1/2012 3,000,000 3,332,670
(Trinitas Hospital Obligated Group)
7.375%, 7/1/2015 4,000,000 4,510,400
New Jersey Housing and Mortgage Finance Agency,
Revenue, Home Buyer 5%, 4/1/2005 (Insured; MBIA) 2,000,000 2,090,820
New Jersey Transportation Corporation, COP:
5.50%, 10/1/2016 (Insured; FSA) 5,480,000 6,298,109
Federal Transit Administration Grants
5.50%, 9/15/2015 (Insured; AMBAC) 6,725,000 7,735,028
New Jersey Transportation Trust Fund Authority,
Transportation System:
5.50%, 6/15/2009 2,725,000 3,149,746
5.50%, 6/15/2014 5,000,000 5,664,900
6%, 12/15/2014
(Prerefunded; 12/15/2011) (Insured; MBIA) 2,630,000 (a) 3,169,571
6%, 12/15/2014 (Insured; MBIA) 1,370,000 1,616,723
6%, 12/15/2015 (Insured; MBIA)
(Prerefunded 12/15/2011) 2,500,000 (a) 3,012,900
6%, 12/15/2016 (Insured; MBIA)
(Prerefunded 12/15/2011) 5,000,000 (a) 6,033,800
New Jersey Turnpike Authority, Turnpike Revenue:
5.75%, 1/1/2010 (Insured; MBIA)
(Prerefunded 1/1/2010) 685,000 (a) 797,367
5.75%, 1/1/2010 (Insured; MBIA) 2,315,000 2,693,294
6%, 1/1/2014 (Insured; MBIA)
(Prerefunded 1/1/2014) 1,820,000 (a) 2,197,686
6%, 1/1/2014 (Insured; MBIA) 3,180,000 3,815,682
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
North Hudson Sewer Authority, Sewer Revenue:
5.25%, 8/1/2010 (Insured; FGIC) 3,825,000 4,251,947
5.25%, 8/1/2016 (Insured; FGIC) 2,000,000 2,219,800
5.25%, 8/1/2017 (Insured; FGIC) 2,000,000 2,205,580
North Jersey District of Water Supply Commission
(Wanaque South Project):
5.25%, 7/1/2014 (Insured; MBIA) 2,200,000 2,483,646
5.25%, 7/1/2015 (Insured; MBIA) 4,570,000 5,147,237
Northeast Monmouth County Regional Sewer Authority,
Sewer Revenue 5%, 11/1/2010 (Insured; MBIA) 2,250,000 2,502,585
Ocean County, General Improvement:
5.65%, 7/1/2005 1,600,000 1,685,920
5%, 9/1/2012 1,300,000 1,438,567
5%, 9/1/2013 1,200,000 1,317,228
Ocean County Utilities Authority,
Wastewater Revenue 5.25%, 1/1/2017 1,500,000 1,643,295
Parsippany--Troy Hills Township 6%, 4/1/2004 1,630,000 1,670,652
Passaic County Utilities Authority, SWDR:
5%, 3/1/2007 1,300,000 1,367,288
5%, 3/1/2008 1,195,000 1,250,066
Port Authority of New York and New Jersey:
(Consolidated Board 101st Series)
5.25%, 9/15/2006 (Insured; MBIA) 1,000,000 1,076,830
(Consolidated Board 127th Series)
5.50%, 12/15/2012 (Insured; AMBAC) 5,530,000 6,243,812
South Brunswick Township Board of Education
5.625%, 12/1/2010 (Insured; FGIC, Guaranteed;
School Board Reserve Fund) (Prerefunded 12/1/2009) 1,820,000 (a) 2,135,169
South Jersey Transportation Authority,
Transportation System Revenue
5.25%, 11/1/2012 (Insured; FSA) 2,105,000 2,398,858
Southeast Morris County Municipal Utilities Authority,
Water Revenue 5%, 1/1/2012 (Insured; MBIA) 1,000,000 1,105,070
Southern Regional High School District
5.50%, 9/1/2011
(Insured; MBIA) (Prerefunded 9/1/2006) 1,600,000 (a) 1,786,608
Sussex County Municipal Utilities Authority,
Wastewater Facilities Revenue
5%, 12/1/2003 (Insured; MBIA) 615,000 619,157
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW JERSEY (CONTINUED)
Tobacco Settlement Financing Corporation
5.375%, 6/1/2018 2,500,000 2,148,375
Trenton 5.125%, 1/15/2013 (Insured; FGIC) 1,000,000 1,100,790
West Morris Regional High School District
5.875%, 1/15/2004 250,000 253,540
Western Monmouth Utilities Authority, Revenue
5.15%, 2/1/2008 (Insured; AMBAC) 1,000,000 1,071,490
U.S. RELATED--5.7%
Children's Trust Fund of Puerto Rico, Tobacco Settlement
Revenue 5.75%, 7/1/2012 (Prerefunded 7/1/2010) 1,500,000 (a) 1,771,485
Commonwealth of Puerto Rico:
5.30%, 7/1/2004 (Insured; MBIA) 2,220,000 2,291,972
5.30%, 7/1/2004
(Insured; MBIA) (Prerefunded 7/1/2004) 280,000 (a) 289,078
Public Improvement
5.50%, 7/1/2015 (Insured; MBIA) 2,400,000 2,814,840
Puerto Rico Highway and Transportation Authority,
Transportation Revenue
5.50%, 7/1/2017 (Insured; FSA) 3,000,000 3,512,250
Virgin Islands Public Finance Authority, Revenue
(Senior Lien Fund) 5.50%, 10/1/2008 (Insured; ACA) 1,500,000 1,694,940
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $198,599,431) 211,607,124
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SHORT-TERM MUNICIPAL INVESTMENTS--1.2%
New Jersey Economic Development Authority, EDR, VRDN
(Foreign Trade Zone Project)
1.15% (LOC; Bank of New York) 1,095,000 (b) 1,095,000
New Jersey Educational Facilities Authority, Revenue,
VRDN (Princeton University) 1.05% 1,500,000 (b) 1,500,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $2,595,000) 2,595,000
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TOTAL INVESTMENTS (cost $201,194,431) 98.6% 214,202,124
CASH AND RECEIVABLES (NET) 1.4% 2,977,795
NET ASSETS 100.0% 217,179,919
Summary of Abbreviations
ACA American Capital Access LOC Limited Obligation Revenue
AMBAC American Municipal Bond Assurance LR Lease Revenue
Corporation
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
Insurance Corporation
EDR Economic Development Revenue SWDR Solid Waste Disposal Revenue
FGIC Financial Guaranty Insurance VRDN Variable Rate Demand Notes
Company
FSA Financial Security Assurance
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 74.2
AA Aa AA 8.9
A A A 5.9
BBB Baa BBB 8.2
F1 MIG1/P1 SP1/A1 1.2
Not Rated (c) Not Rated (c) Not Rated (c) 1.6
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) SECURITIES PAYABLE ON DEMAND. VARIABLE RATE INTEREST--SUBJECT TO PERIODIC
CHANGE.
(C) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S,
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2003 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 201,194,431 214,202,124
Cash 363,995
Interest receivable 2,863,071
Prepaid expenses 4,708
217,433,898
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 120,547
Payable for shares of Beneficial Interest redeemed 69,712
Accrued expenses 63,720
253,979
- --------------------------------------------------------------------------------
NET ASSETS ($) 217,179,919
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 203,893,762
Accumulated undistributed investment income--net 22,175
Accumulated net realized gain (loss) on investments 256,289
Accumulated net unrealized appreciation
(depreciation) on investments 13,007,693
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NET ASSETS ($) 217,179,919
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
15,104,460
NET ASSET VALUE, offering and redemption price per share--Note 3 (d) ($) 14.38
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended September 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 4,955,005
EXPENSES:
Management fee--Note 3(a) 660,131
Shareholder servicing costs--Note 3(b) 126,524
Professional fees 26,936
Custodian fees 12,967
Prospectus and shareholders' reports 9,513
Trustees' fees and expenses--Note 3(c) 9,463
Registration fees 4,184
Loan commitment fees--Note 2 1,005
Miscellaneous 11,545
TOTAL EXPENSES 862,268
Less--reduction in management fee due to
undertaking--Note 3(a) (10,794)
NET EXPENSES 851,474
INVESTMENT INCOME--NET 4,103,531
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 521,202
Net unrealized appreciation (depreciation) on investments (206,379)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 314,823
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,418,354
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
September 30, 2003 Year Ended
(Unaudited) March 31, 2003
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 4,103,531 8,364,834
Net realized gain (loss) on investments 521,202 2,089,727
Net unrealized appreciation (depreciation)
on investments (206,379) 7,776,464
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,418,354 18,231,025
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (4,094,807) (8,430,385)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 19,077,085 42,001,410
Dividends reinvested 4,739,482 7,081,764
Cost of shares redeemed (28,741,521) (48,355,659)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS (4,924,954) 727,515
TOTAL INCREASE (DECREASE) IN NET ASSETS (4,601,407) 10,528,155
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 221,781,326 211,253,171
END OF PERIOD 217,179,919 221,781,326
Undistributed investment income--net 22,175 --
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,329,485 2,974,675
Shares issued for dividends reinvested 329,209 499,823
Shares redeemed (2,015,411) (3,432,748)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (356,717) 41,750
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
Six Months Ended
September 30, 2003 Year Ended March 31,
----------------------------------------------------------------
(Unaudited) 2003 2002(a) 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 14.34 13.70 13.82 13.32 13.93 13.83
Investment Operations:
Investment income--net .27(b) .55(b) .56(b) .59 .59 .59
Net realized and unrealized
gain (loss) on investments .04 .64 (.13) .49 (.61) .10
Total from Investment Operations .31 1.19 .43 1.08 (.02) .69
Distributions:
Dividends from
investment income--net (.27) (.55) (.55) (.58) (.59) (.59)
Dividends from net realized
gain on investments -- -- -- (.00)(c) -- --
Total Distributions (.27) (.55) (.55) (.58) (.59) (.59)
Net asset value, end of period 14.38 14.34 13.70 13.82 13.32 13.93
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 2.16(d) 8.83 3.15 8.35 (.09) 5.04
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses
to average net assets .77(e) .79 .77 .78 .79 .80
Ratio of net investment income
to average net assets 3.72(e) 3.88 3.99 4.34 4.38 4.21
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation .01(e) .00(f) .00(f) .02 .04 .04
Portfolio Turnover Rate 9.64(d) 39.20 32.37 16.71 16.95 18.81
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 217,180 221,781 211,253 207,433 188,705 217,666
(A) AS REQUIRED, EFFECTIVE APRIL 1, 2001, THE FUND HAS ADOPTED THE PROVISIONS
OF THE AICPA AUDIT AND ACCOUNTING GUIDE FOR INVESTMENT COMPANIES AND BEGAN
AMORTIZING DISCOUNT OR PERMIUM ON A SCIENTIFIC BASIS FOR DEBT SECURITIES ON A
DAILY BASIS. THE EFFECT OF THIS CHANGE FOR THE PERIOD ENDED MARCH 31, 2002 WAS
TO INCREASE NET INVESTMENT INCOME PER SHARE AND DECREASE NET REALIZED AND
UNREALIZED GAIN (LOSS) ON INVESTMENTS PER SHARE BY LESS THAN $.01 AND INCREASE
THE RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS BY LESS THAN .01%. PER
SHARE DATA AND RATIOS/SUPPLEMENTAL DATA FOR PERIODS PRIOR TO APRIL 1, 2001 HAVE
NOT BEEN RESTATED TO REFLECT THIS CHANGE IN PRESENTATION.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(D) NOT ANNUALIZED.
(E) ANNUALIZED.
(F) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus New Jersey Intermediate Municipal Bond Fund (the "fund") is registered
under the Investment Company Act of 1940, as amended (the "Act"), as a
non-diversified open-end management investment company. The fund's investment
objective is to provide investors with as high a level of current income exempt
from federal and New Jersey state income taxes as is consistent with the
preservation of capital. The Dreyfus Corporation (the "Manager") serves as the
fund' s investment adviser. The Manager is a wholly-owned subsidiary of Mellon
Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Dreyfus Service Corporation (the "Distributor"), a wholly-owned subsidiary of
the Manager, is the distributor of the fund's shares, which are sold to the
public without a sales charge.
The fund' s financial statements are prepared in accordance with accounting
principles generally accepted in the United States, which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. Treasury securities) are valued each
business day by an independent pricing service (the "Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily available
and are representative of the bid side of the market in the judgment of the
Service are valued at the mean between the quoted bid prices (as obtained by the
Service from dealers in such securities) and asked prices (as calculated by the
Service based upon its evaluation of the market for such securities). Other
investments (which constitute a majority of the portfolio securities) are
carried at fair value as determined by the Service, based on methods which
include consideration of: yields or prices of municipal securities of comparable
quality, coupon, maturity and type; indications as to values from dealers; and
general market conditions. Options and financial futures on municipal and U.S.
Treasury securities are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sales
price on the national securities market on each business day.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of discount and premium on investments, is earned from
settlement date and recognized on the accrual basis. Securities purchased or
sold on a when-issued or delayed-delivery basis may be settled a month or more
after the trade date. Under the terms of the custody agreement, the fund
receives net earnings credits based on available cash balances left on deposit.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(c) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain, if any, are normally declared and paid annually,
but the fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the fund not to distribute such gain.
Income and capital gain distributions are determined in accordance with income
tax regulations, which may differ from accounting principles generally accepted
in the United States.
(d) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all federal income and excise taxes.
The fund has an unused capital loss carryover of $249,314 available for federal
income tax purposes to be applied against net securities profits, The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
if any, realized subsequent to March 31, 2003. If not applied, the carryover
expires in fiscal 2008.
The tax character of distributions paid to shareholder during the fiscal year
ended March 31, 2003, was as follows: tax exempt income $8,430,385. The tax
character of current year distributions will be determined at the end of the
current fiscal year.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund based on prevailing market rates
in effect at the time of borrowings. During the period ended September 30, 2003,
the fund did not borrow under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .60 of 1% of the value of the fund's average
daily net assets and is payable monthly. The Manager had undertaken from April
1, 2003 through March 31, 2004, to reduce the management fee paid by the fund,
if the aggregated annual expenses of the fund, exclusive of taxes, brokerage
fees, interest on borrowings, commitment fees and extraordinary expenses, exceed
an annual rate of .80 of 1% of the value of the fund's average daily net assets.
The reduction in management fee, pursuant to the undertaking, amounted to
$10,794, during the period ended September 30, 2003.
(b) Under the Shareholder Services Plan, the fund reimburses the Distributor an
amount not to exceed an annual rate of .25 of 1% of the value of the fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder
accounts. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the fund
and providing reports and other information, and services related to the
maintenance of shareholder accounts. During the period ended September 30, 2003,
the fund was charged $68,625 pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended September 30, 2003, the fund was charged $35,984 pursuant to the transfer
agency agreement.
(c) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Each Board member who is not
an "affiliated person" as defined in the Act receives an annual fee of $25,000,
an attendance fee of $4,000 for each in-person meeting and $500 for telephone
meetings. The Chairman of the Board receives an additional 25% of such
compensation. Subject to the fund's Emeritus Program Guidelines, Emeritus Board
members, if any, receive 50% of the fund's annual retainer fee and per meeting
fee paid at the time the Board member achieves emeritus status. These fees are
allocated among the funds in the Fund Group in proportion to each fund's
relative net assets.
(d) A 1% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through the use of the fund' s exchange privilege. During the period ended
September 30, 2003, redemption fees charged and retained by the fund amounted to
$164.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 2003, amounted to
$20,911,140 and $31,168,090, respectively.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
At September 30, 2003, accumulated net unrealized appreciation on investments
was $13,007,693, consisting of $13,374,184 gross unrealized appreciation and
$366,491 gross unrealized depreciation.
At September 30, 2003, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
For More Information
Dreyfus New Jersey
Intermediate Municipal
Bond Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to info@dreyfus.com
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2003 Dreyfus Service Corporation 751SA0903
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. [Reserved]
Item 9. Controls and Procedures.
(a) The Registrant's principal executive and principal financial officers
have concluded, based on their evaluation of the Registrant's disclosure
controls and procedures as of a date within 90 days of the filing date of
this report, that the Registrant's disclosure controls and procedures are
reasonably designed to ensure that information required to be disclosed by
the Registrant on Form N-CSR is recorded, processed, summarized and reported
within the required time periods and that information required to be
disclosed by the Registrant in the reports that it files or submits on Form
N-CSR is accumulated and communicated to the Registrant's management,
including its principal executive and principal financial officers, as
appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over
financial reporting that occurred during the Registrant's most recently ended
fiscal half-year that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial
reporting.
Item 10. Exhibits.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and principal financial
officers as required by Rule 30a-2(a) under the Investment Company Act of
1940.
(b) Certification of principal executive and principal financial officers
as required by Rule 30a-2(b) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this Report to
be signed on its behalf by the undersigned, thereunto duly authorized.
DREYFUS NEW JERSEY INTERMEDIATE MUNICIPAL BOND FUND
By: /s/ Stephen E. Canter
---------------------
Stephen E. Canter
President
Date: November 21, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this Report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By: /s/ Stephen E. Canter
---------------------
Stephen E. Canter
Chief Executive Officer
Date: November 21, 2003
By: /s/ James Windels
------------------
James Windels
Chief Financial Officer
Date: November 21, 2003
EXHIBIT INDEX
(a)(2) Certifications of principal executive and principal
financial officers as required by Rule 30a-2(a) under the Investment
Company Act of 1940. (EX-99.CERT)
(b) Certification of principal executive and principal financial
officers as required by Rule 30a-2(b) under the Investment Company Act
of 1940. (EX-99.906CERT)