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 811-6610
DREYFUS CALIFORNIA 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
(PAGE)
FORM N-CSR
Item 1. Reports to Stockholders.
Dreyfus
California Intermediate
Municipal Bond Fund
SEMIANNUAL REPORT September 30, 2003
YOU, YOUR ADVISOR AND
DREYFUS
A MELLON FINANCIAL COMPANY(TM)
The views expressed in this report reflect those of the portfolio manager only
through the end of the period covered and do not necessarily represent the views
of Dreyfus or any other person in the Dreyfus organization. Any such views are
subject to change at any time based upon market or other conditions and Dreyfus
disclaims any responsibility to update such views. These views may not be relied
on as investment advice and, because investment decisions for a Dreyfus fund are
based on numerous factors, may not be relied on as an indication of trading
intent on behalf of any Dreyfus fund.
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
- --------------------------------------------------
2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
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 California
Intermediate Municipal Bond Fund
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for Dreyfus California 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,
Monica Wieboldt.
After a prolonged period of sluggish growth, the U.S. economy has shown signs of
sustainable improvement. However, investor uncertainty regarding the strength of
the recovery has produced heightened volatility in the tax-exempt fixed-income
market. After most areas of the municipal bond market experienced sharp declines
during the summer, prices generally bounced back in September.
Despite recent reductions in federal tax rates, we believe that municipal bonds
may become more attractive to certain investors if states and municipalities
continue to raise taxes to balance their budgets. As always, we encourage you to
talk with your financial advisor about ways to enjoy the benefits of tax-exempt
municipal bonds as market conditions evolve.
Thank you for your continued confidence and support.
Sincerely,
/S/STEPHEN E. CANTER
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
October 15, 2003
DISCUSSION OF FUND PERFORMANCE
Monica Wieboldt, Portfolio Manager
HOW DID DREYFUS CALIFORNIA 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 2.13% .(1) In comparison, the Lehman Brothers 7-Year Municipal Bond
Index (the "Index" ), the fund' s benchmark index, 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 California Municipal Debt Funds category was 1.93%
..(3)
The fund's performance was primarily the result of an unusually volatile
investment environment, in which intermediate-term municipal bonds gained value
during the first three months of the reporting period, lost value during a sharp
market decline in July and early August, and recovered in late August and
September. The fund' s return was higher than the Lipper category primarily
because of the success of our security selection strategy. However, the fund's
return lagged the Index because it contains securities from many states, not
just California, and does not reflect fees and expenses.
WHAT IS THE FUND'S INVESTMENT APPROACH?
The fund's goal is to seek as high a level of federal and California state
tax-exempt income 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 California state
personal income taxes. The dollar-weighted average maturity of the fund's
portfolio ranges between three and ten years. Although the fund currently
intends to invest only in investment-grade municipal bonds, or the unrated
equivalent as determined by Dreyfus, it has the ability to invest up to 20% of
its assets in municipal bonds of below investment-grade credit quality.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
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 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 performed well during the first half of the reporting period as the
tax-exempt bond market continued to benefit from expectations of lower interest
rates. Those expectations were fulfilled in late June, when the Federal Reserve
Board (the "Fed" ) reduced short-term interest rates to 1%, a 45-year low.
Because bond prices and yields move in opposite directions, the fund benefited
as interest rates trended lower.
However, the market gave back all of the reporting period's previous gains in
July, when evidence of stronger economic growth caused investors to worry that
the most recent interest-rate reduction may have been the last of the current
cycle. Fortunately, the bond market bounced back during late August and
September, erasing most of its losses when it became clearer that the economy's
recovery has so far been a relatively jobless one.
The economy's recent strength has not yet resulted in higher tax revenues for
California, whose fiscal condition is more severe than any other state. The
state's fiscal crisis was intensified by the uncertainty of
the Governor Davis recall election, which took place just after the close of the
reporting period. Because of the prevailing uncertainty, California's general
obligation bonds have come under pressure.
Our focus on bonds in the middle of the intermediate-term range enabled the fund
to benefit from the market's strength when prices were rising, but it also
exposed the fund to heightened volatility in July.
WHAT IS THE FUND'S CURRENT STRATEGY?
Because of recent market volatility and the likelihood of continued uncertainty
as Governor-elect Schwarzenegger assumes control of California' s state
government, we have attempted to reduce the fund's sensitivity to day-to-day
market fluctuations. For example, we have diversified a portion of the fund's
holdings away from the middle of the intermediate-term maturity range by
increasing its holdings at the shorter- and longer-term ends of the range. We
have also attempted to limit the fund' s exposure to the state's general
obligation debt and increase diversification by adding other types of issues,
such as bonds backed by the revenues of essential-services facilities. Finally,
we have increased our emphasis on defensive securities, such as higher-rated,
premium coupon bonds selling at premiums relative to their face values. In our
view, continued careful security selection and attention to credit quality are
prudent strategies in today's California bond market.
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-CALIFORNIA RESIDENTS, AND SOME
INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR
CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX IS AN UNMANAGED TOTAL RETURN PERFORMANCE BENCHMARK
FOR THE INVESTMENT-GRADE, GEOGRAPHICALLY UNRESTRICTED 7-YEAR TAX-EXEMPT
BOND MARKET, CONSISTING OF MUNICIPAL BONDS WITH MATURITIES OF 6-8 YEARS.
INDEX RETURNS DO NOT REFLECT THE FEES AND EXPENSES ASSOCIATED WITH
OPERATING A MUTUAL FUND.
(3) SOURCE: LIPPER INC. -- CATEGORY AVERAGE RETURNS REFLECT THE FEES AND
EXPENSES OF THE FUNDS COMPRISING THE AVERAGE.
The Fund
STATEMENT OF INVESTMENTS
September 30, 2003 (Unaudited)
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.3% Amount ($) Value ($)
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CALIFORNIA--83.8%
ABAG Finance Authority, COP
(Episcopal Homes Foundation)
5.25%, 7/1/2010 3,500,000 3,674,545
Alameda Corridor Transportation Authority, Revenue
5.125%, 10/1/2016 (Insured; MBIA) 3,000,000 3,260,400
Alameda County, COP
5.375%, 12/1/2012 (Insured; MBIA) 2,000,000 2,279,260
Alta Loma School District
Zero Coupon, 8/1/2015 (Insured; FGIC) 1,000,000 596,380
California:
5.50%, 3/1/2017 5,990,000 6,429,606
Veterans 5.35%, 12/1/2016 2,000,000 2,108,140
California Department of Water Resources, Revenue:
(Central Valley Project):
5%, 12/1/2012 (Insured; FGIC) 4,000,000 4,479,960
5.50%, 12/1/2015 1,500,000 1,697,820
Water Systems 5.50%, 12/1/2015 (Insured; FGIC) 2,000,000 2,329,780
Power Supply:
5.25%, 5/1/2009 (Insured; MBIA) 4,000,000 4,561,600
5.375%, 5/1/2017 3,000,000 3,289,830
California Educational Facilities Authority, Revenue
(Stanford University) 5.25%, 12/1/2013 2,250,000 2,589,975
California Health Facilities Financing Authority, Revenue:
(Downey Community Hospital) 5.625%, 5/15/2008 4,370,000 4,135,637
(Health Facility--Adventist Health Systems):
5%, 3/1/2017 870,000 879,413
5%, 3/1/2018 1,000,000 1,004,060
(Pomona Valley Hospital)
5.375%, 7/1/2009 (Insured; MBIA) 3,240,000 3,673,609
(Saint Francis Memorial Hospital)
5.75%, 11/1/2003 1,130,000 1,134,305
(Stanford Hospital and Clinics):
4%, 11/15/2008 1,000,000 1,057,390
5%, 11/15/2017 2,000,000 2,082,980
California Housing Finance Agency, Revenue
(Single Family Mortgage)
5.95%, 8/1/2014 (Insured; MBIA) 3,000,000 3,140,430
California Infrastructure & Economic Development Bank,
Revenue (Bay Area Toll Bridges--1st Lien):
5%, 7/1/2009 (Insured; FSA) 2,000,000 2,278,940
5.25%, 7/1/2017 (Insured; FSA) 2,000,000 2,207,780
California Pollution Control Financing Authority, PCR
(Southern California Edison Co.) 7%, 3/1/2005 5,000,000 5,058,150
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CALIFORNIA (CONTINUED)
California Public Works Board, LR (Secretary of State)
6.10%, 12/1/2004 (Insured; AMBAC) 2,500,000 2,644,325
California Statewide Communities Development Authority:
Apartment Development Revenue
(Irvine Apartment Communities)
5.05%, 5/15/2008 2,000,000 2,140,320
COP, Revenue (Huntington Memorial Hospital)
5.50%, 7/1/2010 4,000,000 4,499,600
MFHR (Equity Residential) 5.20%, 6/15/2009 2,000,000 2,155,760
Multifamily Revenue (Quail Ridge Apartments)
4.25%, 7/1/2012 1,000,000 1,006,490
Carson Redevelopment Agency
(Area Number 1--Tax Allocation)
5.50%, 10/1/2013 (Insured; MBIA) 1,000,000 1,151,430
East Bay Municipal Utility District,
Water Systems Revenue (Subordinated)
4%, 6/1/2008 (Insured; FSA) 2,750,000 2,996,290
Eastern Municipal Water District,
Water & Sewer Revenue,
COP 5.375%, 7/1/2017 (Insured; FGIC) 2,000,000 2,224,160
Escondido Joint Powers Financing Authority, LR
(California Center for the Arts)
5.90%, 9/1/2010 (Insured; AMBAC) 3,440,000 3,809,731
Foothill/Eastern Transportation Corridor Agency,
Toll Road Revenue:
0/7.05%, 1/1/2010 2,000,000 (a) 2,260,180
5.25%, 1/15/2012 (Insured; MBIA) 4,550,000 5,055,096
0/7.15%, 1/1/2013 (Prerefunded 1/1/2010) 2,000,000 (a,b) 2,301,760
5.125%, 1/15/2019 (Insured; MBIA) 2,000,000 2,118,340
Golden State Tobacco Securitization Corp.,
Tobacco Settlement Revenue
(Enhanced--Asset Backed) 5.75%, 6/1/2021 2,500,000 2,637,125
Indian Wells Redevelopment Agency,
Tax Allocation Revenue (Whitewater)
5%, 9/1/2013 (Insured; AMBAC) 1,295,000 1,443,355
Livermore--Amador Valley Water Management Agency,
Sewer Revenue 5.25%, 8/1/2014 (Insured; AMBAC) 3,200,000 3,541,440
Los Angeles City, Revenue (Harbor Department)
6%, 8/1/2014 6,500,000 7,198,360
Los Angeles Community College District:
5.50%, 8/1/2015 (Insured; MBIA) 2,000,000 2,254,440
5.50%, 8/1/2016 (Insured; MBIA) 1,845,000 2,079,721
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CALIFORNIA (CONTINUED)
Los Angeles County Metropolitan Transportation Authority,
Sales Tax Revenue 5%, 7/1/2017 (Insured; FGIC) 1,450,000 1,557,837
Los Angeles County Public Works Financing Authority,
Revenue (Los Angeles County Flood Control District)
5%, 3/1/2012 (Insured; MBIA) 3,000,000 3,343,440
Los Angeles Department of Water & Power
Power Systems Revenue 5%, 7/1/2008 2,000,000 2,266,320
Los Angeles Unified School District:
5.50%, 7/1/2012 (Insured; MBIA) 2,500,000 2,884,200
5.25%, 7/1/2014 (Insured; MBIA) 1,000,000 1,125,440
5.75%, 7/1/2015 (Insured; MBIA) 3,000,000 3,554,880
Los Angeles Wastewater Systems, Revenue
5%, 6/1/2008 (Insured; FSA) 2,000,000 2,267,880
Metropolitan Water District of Southern California,
Waterworks Revenue 5.25%, 3/1/2015 3,000,000 3,330,510
Midpeninsula Regional Open Space District
Financing Authority, Revenue
Zero Coupon, 9/1/2015 (Insured; AMBAC) 2,825,000 1,673,954
Modesto Irrigation District, COP (Capital Improvements)
5.25%, 7/1/2016 (Insured; FSA) 1,370,000 1,499,862
Moulton-Niguel Water District
5%, 9/1/2016 (Insured; AMBAC) 1,350,000 1,478,601
Orange County, COP 5.70%, 7/1/2010 (Insured; MBIA) 4,000,000 4,521,040
Orange County Local Transportation Authority,
Sales Tax Revenue
5%, 2/15/2011 (Insured; AMBAC) 1,000,000 1,119,750
Rancho Water District 5.50%, 8/1/2008 1,670,000 1,935,430
Sacramento County, Special Tax
(Community Facilities District Number 1):
5.20%, 12/1/2007 1,110,000 1,196,180
5.40%, 12/1/2009 1,220,000 1,306,437
Sacramento County Sanitation District
Financing Authority, Revenue 5.50%, 12/1/2014 4,000,000 4,527,040
Sacramento Municipal Utilities District, Electric Revenue
10.015%, 11/15/2015 2,000,000 (c,d) 2,103,400
San Diego County, COP (Burnham Institute)
5.70%, 9/1/2011 3,100,000 3,291,394
San Diego Housing Authority, MFHR
(Island Village Apartments) 5.10%, 7/1/2012 1,215,000 1,289,297
San Diego Unified School District, Election of 1998
5.25%, 7/1/2016 (Insured; FSA) 1,465,000 1,638,559
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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CALIFORNIA (CONTINUED)
San Francisco City and County Airports Commission,
International Airport Revenue:
6.20%, 5/1/2015 (Insured; FGIC) 1,325,000 1,376,079
(Special Facilities Lease--SFO Fuel)
5.25%, 1/1/2008 (Insured; AMBAC) 2,575,000 2,868,267
San Francisco City and County
Public Utilities Commission, Water Revenue
5%, 11/1/2016 (Insured; FSA) 2,000,000 2,162,640
San Mateo Redevelopment Agency (Tax Allocation)
5.10%, 8/1/2014 1,835,000 1,967,615
Santa Ana Housing Authority, MFHR
(Cornerstone Village Apartments) 5%, 8/15/2012 1,000,000 1,057,120
Santa Clara Unified School District 5.50%, 7/1/2016 1,870,000 2,105,358
South Placer Wastewater Authority,
Wastewater Revenue 5.50%, 11/1/2015
(Insured; FGIC, Prerefunded 11/1/2010) 1,000,000 (b) 1,182,760
Tri-City Hospital District, Revenue
5.375%, 2/15/2007 2,500,000 2,776,100
Truckee-Donner Public Utility District, COP:
4.50%, 1/1/2008 (Insured; ACA) 1,500,000 1,611,165
4.50%, 1/1/2009 (Insured; ACA) 1,685,000 1,801,417
U.S. RELATED--14.5%
Children's Trust Fund, Tobacco Settlement Revenue:
5.75%, 7/1/2013 (Prerefunded 7/1/2010) 1,000,000 (b) 1,180,990
5.75%, 7/1/2014 (Prerefunded 7/1/2010) 3,000,000 (b) 3,542,970
Guam, LOR:
(Infrastructure Improvement)
5.25%, 11/1/2009 (Insured; AMBAC) 1,210,000 1,371,281
(Section 30) 5.50%, 12/1/2010 (Insured; FSA) 3,000,000 3,490,110
Puerto Rico Commonwealth:
5%, 7/1/2021 (Insured; FSA) 1,000,000 1,118,000
Public Improvement:
5%, 7/1/2004 1,350,000 1,388,354
5%, 7/1/2005 230,000 245,504
5.75%, 7/1/2008 (Insured; MBIA) 2,000,000 2,325,040
5.50%, 7/1/2013 (Insured; FSA) 2,000,000 2,336,080
Puerto Rico Electric Power Authority,
Power Revenue 5.75%, 7/1/2016
(Insured; FSA, Prerefunded 7/1/2010) 2,000,000 (b) 2,365,000
Puerto Rico Highway & Transportation Authority,
Highway Revenue 6.25%, 7/1/2016 (Insured; FSA) 3,000,000 3,732,030
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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U.S. RELATED (CONTINUED)
Puerto Rico Housing Finance Authority,
Home Mortgage Revenue (Mortgage Backed)
4.375%, 12/1/2017 1,500,000 1,500,510
Puerto Rico Industrial Tourist Educational,
Medical, & Environmental Control Facilities
Financing Authority, Industrial Revenue
(Guaynabo Warehouse) 4.35%, 7/1/2006 1,170,000 1,241,475
Puerto Rico Public Building Authority,
Government Facility Revenue 5.50%, 7/1/2016 1,500,000 1,693,290
Virgin Islands Public Finance Authority, Revenue:
5.625%, 10/1/2010 2,000,000 2,187,600
5.875%, 10/1/2018 1,000,000 1,020,390
Virgin Islands Water and Power Authority,
Electric Systems 5.125%, 7/1/2011 1,000,000 1,069,930
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TOTAL INVESTMENTS (cost $203,294,383) 98.3% 216,096,439
CASH AND RECEIVABLES (NET) 1.7% 3,738,831
NET ASSETS
100.0% 219,835,270
Summary of Abbreviations
ACA American Capital Access
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
FGIC Financial Guaranty Insurance
Company
FSA Financial Security Assurance
LOR Limited Obligation Revenue
LR Lease Revenue
MBIA Municipal Bond Investors
Assurance Insurance
Corporation
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 65.6
AA Aa AA 12.7
A A A 8.0
BBB Baa BBB 6.8
BB Ba BB 4.2
F1 MIG1/PI SP1/A1 .5
Not Rated (e) Not Rated (e) Not Rated (e) 2.2
100.0
(A) ZERO COUPON UNTIL A SPECIFIED DATE, AT WHICH TIME THE STATED COUPON
BECOMES EFFECTIVE UNTIL MATURITY.
(B) 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.
(C) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE
PERIODICALLY.
(D) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933. THIS SECURITY MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT SEPTEMBER 30,
2003, THIS SECURITY AMOUNTED TO $2,103,400 OR .9% OF NET ASSETS.
(E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S,
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2003 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 203,294,383 216,096,439
Cash 286,322
Receivable for investment securities sold 4,332,196
Interest receivable 2,576,028
Receivable for shares of Beneficial Interest subscribed 64,504
Prepaid expenses and other assets 236,119
223,591,608
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 118,617
Payable for investment securities purchased 3,000,180
Payable for shares of Beneficial Interest redeemed 585,058
Accrued expenses and other liabilities 52,483
3,756,338
- --------------------------------------------------------------------------------
NET ASSETS ($) 219,835,270
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 206,531,489
Accumulated undistributed investment income--net 31,300
Accumulated net realized gain (loss) on investments 470,425
Accumulated net unrealized appreciation
(depreciation) on investments 12,802,056
- --------------------------------------------------------------------------------
NET ASSETS ($) 219,835,270
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
15,155,391
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 14.51
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended September 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 4,989,391
EXPENSES:
Management fee--Note 3(a) 665,900
Shareholder servicing costs--Note 3(b) 101,722
Professional fees 21,325
Custodian fees 16,367
Trustees' fees and expenses--Note 3(c) 9,797
Prospectus and shareholders' reports 9,274
Registration fees 5,364
Loan commitment fees--Note 2 1,003
Miscellaneous 12,397
TOTAL EXPENSES 843,149
INVESTMENT INCOME--NET 4,146,242
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 481,900
Net unrealized appreciation (depreciation) on investments (296,143)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 185,757
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,331,999
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 ($):
Investment income--net 4,146,242 8,259,582
Net realized gain (loss) on investments 481,900 2,142,386
Net unrealized appreciation (depreciation)
on investments (296,143) 7,650,645
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,331,999 18,052,613
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (4,114,942) (8,323,081)
Net realized gain on investments (1,151,655) --
TOTAL DIVIDENDS (5,266,597) (8,323,081)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 29,544,428 50,168,250
Dividends reinvested 3,962,709 6,193,199
Cost of shares redeemed (33,130,338) (43,036,903)
INCREASE (DECREASE) IN NET ASSETS
FROM BENEFICIAL INTEREST TRANSACTIONS 376,799 13,324,546
TOTAL INCREASE (DECREASE) IN NET ASSETS (557,799) 23,054,078
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 220,393,069 197,338,991
END OF PERIOD 219,835,270 220,393,069
Undistributed investment income--net 31,300 --
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 2,032,262 3,493,742
Shares issued for dividends reinvested 275,049 429,536
Shares redeemed (2,296,144) (2,998,636)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 11,167 924,642
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 Year Ended March 31,
September 30, 2003 -----------------------------------------------------------------
(Unaudited) 2003(a) 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 14.55 13.88 13.97 13.40 13.99 13.82
Investment Operations:
Investment income--net .27(b) .56(b) .58(b) .58 .58 .58
Net realized and unrealized
gain (loss) on investments .04 .68 (.09) .57 (.59) .17
Total from Investment Operations .31 1.24 .49 1.15 (.01) .75
Distributions:
Dividends from
investment income--net (.27) (.57) (.58) (.58) (.58) (.58)
Dividends from net realized
gain on investments (.08) -- -- -- -- --
Total Distributions (.35) (.57) (.58) (.58) (.58) (.58)
Net asset value, end of period 14.51 14.55 13.88 13.97 13.40 13.99
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 2.13(c) 9.09 3.46 8.79 .02 5.55
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses
to average net assets .76(d) .76 .76 .76 .79 .80
Ratio of net investment income
to average net assets 3.73(d) 3.91 4.15 4.28 4.32 4.19
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation -- .00(e) -- .00(e) .00(c) .02
Portfolio Turnover Rate 18.74(c) 21.56 21.04 31.35 19.38 26.29
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 219,835 220,393 197,339 179,693 174,706 202,436
(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 PREMIUM 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
FROM 4.14% TO 4.15%. 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) NOT ANNUALIZED.
(D) ANNUALIZED.
(E) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus California 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 California 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
received net earnings credits of $2,869 during the period ended September 30,
2003 based on available cash balances left on deposit. Income earned under this
arrangement is included in interest income.
The fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain, if any, are normally declared and paid annually,
but the fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
"Code"). To the extent that net realized capital gain can be offset by capital
loss carryovers, if any, 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
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
The tax character of distributions paid to shareholder during the fiscal year
ended March 31, 2003, was as follows: tax exempt income $8,323,081. 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.
(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 $53,000
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 $30,445 pursuant to the transfer
agency agreement.
(C) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Each Board member who is not
an "affiliated person" as defined in the Act receives an annual fee of $25,000,
an attendance fee of $4,000 for each in-person meeting and $500 for telephone
meetings. The Chairman of the Board receives an additional 25% of such
compensation. Subject to the fund's Emeritus Program Guidelines, Emeritus Board
members, if any, receive 50% of the annual retainer fee and per meeting fee paid
at the time the Board member achieves emeritus status. These fees are allocated
among the funds in the Fund Group in proportion to each fund's relative net
assets.
(D) A 1% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through 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
$1,331.
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
$43,115,008 and $40,414,722, respectively.
At September 30, 2003, accumulated net unrealized appreciation on investments
was $12,802,056, consisting of $13,355,262 gross unrealized appreciation and
$553,206 gross unrealized depreciation.
At September 30, 2003, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
NOTES
For More Information
Dreyfus
California 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 902SA0903
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 CALIFORNIA 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)