| 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 811-5877
| Dreyfus Strategic Municipal Bond Fund, Inc. |
| (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: 11/30
Date of reporting period: 5/31/06
FORM N-CSR
Item 1. Reports to Stockholders.
Dreyfus Strategic Municipal Bond Fund, Inc.
| Protecting Your Privacy |
| Our Pledge to You |
THE FUND IS COMMITTED TO YOUR PRIVACY. On this page, you will find the Fund’s policies and practices for collecting, disclosing, and safeguarding “nonpublic personal information,” which may include financial or other customer information.These policies apply to individuals who purchase Fund shares for personal, family, or household purposes, or have done so in the past. This notification replaces all previous statements of the Fund’s consumer privacy policy, and may be amended at any time. We’ll keep you informed of changes as required by law.
YOUR ACCOUNT IS PROVIDED IN A SECURE ENVIRONMENT. The Fund maintains physical, electronic and procedural safeguards that comply with federal regulations to guard nonpublic personal information. The Fund’s agents and service providers have limited access to customer information based on their role in servicing your account.
THE FUND COLLECTS INFORMATION IN ORDER TO SERVICE AND ADMINISTER YOUR ACCOUNT.
The Fund collects a variety of nonpublic personal information, which may include:
| • | Information we receive from you, such as your name, address, and | |
| social security number. | ||
| • | Information about your transactions with us, such as the purchase | |
| or sale of Fund shares. | ||
| • | Information we receive from agents and service providers, such | |
| as proxy voting information. |
THE FUND DOES NOT SHARE NONPUBLIC
PERSONAL INFORMATION WITH ANYONE, EXCEPT AS PERMITTED BY LAW.
Thank you for this opportunity to serve you.
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 | |
| 21 | Statement of Assets and Liabilities | |
| 22 | Statement of Operations | |
| 23 | Statement of Changes in Net Assets | |
| 24 | Financial Highlights | |
| 26 | Notes to Financial Statements | |
| FOR MORE INFORMATION | ||
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| Back Cover | ||
| Dreyfus |
| Strategic Municipal Bond Fund, Inc. |
| The | Fund |
LETTER FROM THE CHAIRMAN
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Strategic Municipal Bond Fund, Inc., covering the six-month period from December 1, 2005, through May 31, 2006.
Since June 2004, the Federal Reserve Board (the “Fed”) has attempted to manage U.S. economic growth and forestall potential inflation by gradually raising short-term interest rates. In our view, the Fed’s shift from a stimulative monetary policy to a neutral one has so far been successful: the economy has grown at a moderate pace, the unemployment rate has dropped, corporate profits have risen, and inflation has generally remained in check despite recent cost pressures stemming from higher energy and import prices.
As we near the second half of the year, the financial markets appear more likely to be influenced not by what the Fed already has accomplished, but by investors’ expectations of what is to come, including the Fed’s decision to increase rates further, maintain them at current levels or reduce them to stimulate future growth. We believe that this decision will depend largely on the outlook for core inflation in 2007. The Fed probably can stand pat as long as it expects inflation to remain subdued. But if inflationary pressures continue to build, the Fed may choose to tighten monetary policy further. As always, we urge you to discuss with your financial advisor the potential implications of these possibilities on your investments.
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.
| Stephen E. Canter |
| Chairman and Chief Executive Officer |
| The Dreyfus Corporation |
| June 15, 2006 |
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2 |
DISCUSSION OF FUND PERFORMANCE
James Welch, Portfolio Manager
How did Dreyfus Strategic Municipal Bond Fund perform during the period?
For the six-month period ended May 31, 2006, the fund achieved a total return of 3.49% .1 Over the same period, the fund provided aggregate income dividends of $0.258 per share, which reflects a distribution rate of 5.93% .2
Longer-term municipal bond prices continued to hold up relatively well amid rising short-term interest rates for much of the reporting period, until intensifying inflation fears led to a bout of market weakness in the spring of 2006. The fund continued to receive strong income contributions from its core holdings of seasoned municipal bonds, which were purchased at a time when yields were higher than today, as well as lower-rated, corporate-backed securities.
What is the fund’s investment approach?
The fund seeks to maximize current income exempt from federal income tax to the extent believed by Dreyfus to be consistent with the preservation of capital. In pursuing this goal, the fund invests at least 80% of its assets in municipal bonds. Under normal market conditions, the weighted average maturity of the fund’s portfolio is expected to exceed 10 years. Municipal bonds are classified as general obligation bonds, revenue bonds and notes. Under normal market conditions, the fund invests at least 80% of its net assets in municipal bonds considered investment grade or the unrated equivalent as determined by Dreyfus.
The fund also issues auction rate preferred stock and invests the proceeds in a manner consistent with its investment objective.This has the effect of “leveraging” the portfolio, which can increase the fund’s performance potential as well as, depending on market conditions, enhance net asset value volatility.
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The Fund 3 |
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DISCUSSION OF FUND PERFORMANCE (continued) |
Over time, many of the fund’s older, higher yielding bonds have matured or were redeemed by their issuers. We have generally attempted to replace those bonds with investments consistent with the fund’s investment policies. We have also sought to upgrade the fund with newly issued bonds that, in our opinion, have better structural or income characteristics than existing holdings. When such opportunities arise, we usually look to sell bonds that are close to their optimal redemption date or maturity. In addition, we conduct credit analysis of the fund’s holdings in an attempt to avoid potential defaults on interest and principal payments.
What other factors influenced the fund’s performance?
The Federal Reserve Board (the “Fed”) implemented four more increases in the overnight federal funds rate, driving it to 5% by the reporting period’s end. While longer-term bond yields also rose, they initially climbed less steeply than short-term rates,supporting bond prices and contributing to a further narrowing of yield differences between the short and long ends of the market’s maturity range.A more pronounced rise in long-term yields beginning in March 2006 was not enough to erase the fund’s positive total returns for the reporting period overall.
The fund’s results also were influenced by supply-and-demand factors in the municipal bond market.The growing U.S. economy benefited most states and municipalities, helping to reduce unemployment and boost corporate and personal income tax receipts. As a result, the national supply of newly issued bonds moderated compared to the same period one year ago. However, demand from individual and institutional investors generally remained robust, putting downward pressure on bond yields and supporting their prices.
In this environment, the fund continued to receive strong income contributions from its core holdings of seasoned bonds. Some of those holdings were called by their issuers during the reporting period, and some were “pre-refunded,” a process in which new securities are issued at lower yields and part of the proceeds is set aside to redeem higher
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4 |
yielding bonds at the earliest available opportunity. Prices of pre-refunded bonds tend to rise. The fund also received strong income contributions from its corporate-backed holdings, including bonds issued on behalf of airlines, as well as securities backed by the states’ settlement of litigation with U.S. tobacco companies.
As yield differences along the market’s maturity spectrum narrowed, we focused more intently on bonds with maturities in the 20-year range while reducing exposure to securities with 10-year maturities. This strategy helped the fund participate more fully in strength among longer-term securities while managing the risks that longer-dated positions typically entail.
What is the fund’s current strategy?
Although the Fed appears to be near the end of its credit tightening campaign, we believe that one or more additional rate hikes are likely. Indeed, recent economic data have been mixed, with some suggesting that inflationary pressures are mounting, while others show signs of economic weakness. Therefore, while we generally have maintained the same income-oriented strategy that we employed during the reporting period, we are prepared to alter the fund’s profile when we become convinced that short-term interest rates have peaked and the U.S. economy is moving to the next phase of its cycle.
June 15, 2006
| 1 | Total return includes reinvestment of dividends and any capital gains paid, based upon net asset | |
| value per share. Past performance is no guarantee of future results. Income may be subject to state and | ||
| local taxes, and some income may be subject to the federal alternative minimum tax (AMT) for | ||
| certain investors. Capital gains, if any, are fully taxable. Return figure provided reflects the absorption | ||
| of certain expenses by The Dreyfus Corporation pursuant to an undertaking in effect through | ||
| October 31, 2006. Had these expenses not been absorbed, the fund’s return would have been lower. | ||
| 2 | Distribution rate per share is based upon dividends per share paid from net investment income | |
| during the period, divided by the market price per share at the end of the period, adjusted for any | ||
| capital gain distributions. |
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The Fund 5 |
| STATEMENT OF INVESTMENTS |
| May 31, 2006 (Unaudited) |
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments—142.3% | Rate (%) | Date | Amount ($) | Value ($) | ||||
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| Alabama—1.0% | ||||||||
| Jefferson County, | ||||||||
| Limited Obligation School | ||||||||
| Warrants | 5.50 | 1/1/22 | 4,000,000 | 4,278,280 | ||||
| Alaska—4.1% | ||||||||
| Alaska Housing Finance Corp. | ||||||||
| (Veterans Mortgage Program) | 6.25 | 6/1/35 | 5,085,000 | 5,319,419 | ||||
| Alaska Housing Finance Corp., | ||||||||
| General Mortgage Revenue | ||||||||
| (Insured; MBIA) | 6.05 | 6/1/39 | 11,915,000 | 12,248,858 | ||||
| Arizona—.5% | ||||||||
| Apache County Industrial | ||||||||
| Development Authority, PCR | ||||||||
| (Tucson Electric Power Co. | ||||||||
| Project) | 5.85 | 3/1/28 | 2,220,000 | 2,220,932 | ||||
| Arkansas—1.9% | ||||||||
| Arkansas Development Finance | ||||||||
| Authority, SFMR (Mortgage | ||||||||
| Backed Securities Program) | ||||||||
| (Collateralized; GNMA) | 6.25 | 1/1/32 | 2,780,000 | 2,785,755 | ||||
| Little Rock School District | ||||||||
| (Insured; FSA) | 5.25 | 2/1/30 | 5,000,000 | 5,193,600 | ||||
| California—5.7% | ||||||||
| California, | ||||||||
| GO | 5.50 | 4/1/28 | 4,855,000 | 5,272,287 | ||||
| California, | ||||||||
| GO (Various Purpose) | 5.25 | 11/1/27 | 4,240,000 | 4,442,587 | ||||
| California Department of Veteran | ||||||||
| Affairs, Home Purchase Revenue | 5.20 | 12/1/28 | 5,000,000 | 5,002,000 | ||||
| California Health Facilities | ||||||||
| Financing Authority, Revenue | ||||||||
| (Cedars-Sinai Medical Center) | 6.25 | 12/1/09 | 3,750,000 a | 4,096,162 | ||||
| Chula Vista, | ||||||||
| IDR (San Diego Gas and | ||||||||
| Electric Co.) | 5.00 | 12/1/27 | 3,000,000 | 3,030,360 | ||||
| Chula Vista, | ||||||||
| IDR (San Diego Gas and | ||||||||
| Electric Co.) | 5.00 | 12/1/27 | 2,500,000 | 2,525,300 |
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6 |
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
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| Colorado—4.4% | ||||||||
| Colorado Health Facilities | ||||||||
| Authority, Revenue (American | ||||||||
| Housing Foundation 1, Inc.) | 8.50 | 12/1/31 | 1,995,000 | 2,059,179 | ||||
| Colorado Housing Finance Authority | ||||||||
| (Collateralized; FHA) | 6.60 | 8/1/32 | 2,285,000 | 2,376,103 | ||||
| Denver City and County, | ||||||||
| Special Facilities Airport Revenue | ||||||||
| (United Airlines Project) | 6.88 | 10/1/32 | 2,885,000 b | 2,967,222 | ||||
| Northwest Parkway Public Highway | ||||||||
| Authority, Revenue | 7.13 | 6/15/41 | 7,000,000 | 6,575,590 | ||||
| Silver Dollar Metropolitan District | 7.05 | 12/1/06 | 4,755,000 a | 4,834,361 | ||||
| Connecticut—5.6% | ||||||||
| Connecticut | 5.00 | 5/1/25 | 3,500,000 | 3,680,110 | ||||
| Connecticut Development Authority, | ||||||||
| PCR (Connecticut Light and | ||||||||
| Power Co. Project) | 5.95 | 9/1/28 | 9,000,000 | 9,463,230 | ||||
| Connecticut Health and Educational | ||||||||
| Facilities Authority, Revenue | ||||||||
| (Yale University Issue) | 5.00 | 7/1/42 | 4,735,000 | 4,851,954 | ||||
| Connecticut Resources Recovery | ||||||||
| Authority (American REF-FUEL | ||||||||
| Co. of Southeastern | ||||||||
| Connecticut Project) | 6.45 | 11/15/22 | 4,985,000 | 5,026,874 | ||||
| Mohegan Tribe Indians Gaming | ||||||||
| Authority, Public | ||||||||
| Improvement-Priority | ||||||||
| Distribution | 6.25 | 1/1/31 | 1,000,000 | 1,066,170 | ||||
| District of Columbia—1.0% | ||||||||
| Metropolitan Washington Airports | ||||||||
| Authority, Special Facilities | ||||||||
| Revenue (Caterair | ||||||||
| International Corp.) | 10.13 | 9/1/11 | 4,300,000 | 4,305,762 | ||||
| Florida—4.8% | ||||||||
| Florida Housing Finance Corp., | ||||||||
| Housing Revenue (Seminole | ||||||||
| Ridge Apartments) | ||||||||
| (Collateralized; GNMA) | 6.00 | 4/1/41 | 6,415,000 | 6,652,932 | ||||
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The Fund 7 |
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
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| Florida (continued) | ||||||||
| Highlands County Health Facilities | ||||||||
| Authority, HR (Adventist | ||||||||
| Health System/Sunbelt | ||||||||
| Obligated Group) | 5.25 | 11/15/36 | 7,000,000 c | 7,253,470 | ||||
| Orange County Health Facilities | ||||||||
| Authority, HR (Orlando | ||||||||
| Regional Healthcare System) | 6.00 | 10/1/09 | 70,000 a | 75,541 | ||||
| Orange County Health Facilities | ||||||||
| Authority, HR (Orlando | ||||||||
| Regional Healthcare System) | 6.00 | 10/1/26 | 3,430,000 | 3,610,178 | ||||
| Orange County Health Facilities | ||||||||
| Authority, Revenue (Adventist | ||||||||
| Health System) | 6.25 | 11/15/24 | 3,000,000 | 3,285,240 | ||||
| Georgia—2.6% | ||||||||
| Atlanta, | ||||||||
| Airport Revenue (Insured; FSA) | 5.25 | 1/1/25 | 3,000,000 | 3,133,380 | ||||
| Augusta, | ||||||||
| Airport Revenue | 5.45 | 1/1/31 | 2,500,000 | 2,528,900 | ||||
| Georgia Housing and Finance | ||||||||
| Authority, SFMR | 5.60 | 12/1/32 | 2,495,000 | 2,568,752 | ||||
| Savannah Economic Development | ||||||||
| Authority, EIR (International | ||||||||
| Paper Co.) | 6.20 | 8/1/27 | 2,670,000 | 2,872,600 | ||||
| Idaho—.1% | ||||||||
| Idaho Housing and Finance | ||||||||
| Association, SFMR | ||||||||
| (Collateralized; FNMA) | 6.35 | 1/1/30 | 550,000 | 570,460 | ||||
| Illinois—10.0% | ||||||||
| Chicago, | ||||||||
| SFMR (Collateralized: FHLMC, | ||||||||
| FNMA and GNMA) | 6.25 | 10/1/32 | 2,240,000 | 2,289,840 | ||||
| Chicago O’Hare International | ||||||||
| Airport, General Airport | ||||||||
| Revenue (3rd Lien) (Insured; | ||||||||
| XLCA) | 6.00 | 1/1/29 | 5,000,000 | 5,499,050 | ||||
| Chicago O’Hare International | ||||||||
| Airport, Special Facilities | ||||||||
| Revenue (American Airlines | ||||||||
| Inc. Project) | 8.20 | 12/1/24 | 7,200,000 | 7,235,928 | ||||
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8 |
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
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| Illinois (continued) | ||||||||
| Illinois Educational Facilities | ||||||||
| Authority, Revenue (Chicago | ||||||||
| University) (Insured; MBIA) | 5.13 | 7/1/38 | 5,000,000 | 5,128,750 | ||||
| Illinois Educational Facilities | ||||||||
| Authority, Revenue | ||||||||
| (Northwestern University) | 5.00 | 12/1/38 | 5,000,000 | 5,098,650 | ||||
| Illinois Health Facilities | ||||||||
| Authority, Revenue (Advocate | ||||||||
| Health Care Network) | 6.13 | 11/15/10 | 5,000,000 a | 5,476,550 | ||||
| Illinois Health Facilities | ||||||||
| Authority, Revenue (OSF | ||||||||
| Healthcare System) | 6.25 | 11/15/09 | 10,900,000 a | 11,876,640 | ||||
| Indiana—1.5% | ||||||||
| Franklin Township School Building | ||||||||
| Corp., First Mortgage | 6.13 | 7/15/10 | 6,000,000 a | 6,638,100 | ||||
| Kansas—.8% | ||||||||
| Burlington, | ||||||||
| PCR (Kansas Gas and Electric | ||||||||
| Co. Project) (Insured; MBIA) | 4.85 | 6/1/31 | 3,250,000 c | 3,268,687 | ||||
| Louisiana—1.8% | ||||||||
| West Feliciana Parish, | ||||||||
| PCR (Entergy Gulf States) | 7.00 | 11/1/15 | 3,000,000 | 3,011,220 | ||||
| West Feliciana Parish, | ||||||||
| PCR (Entergy Gulf States) | 6.60 | 9/1/28 | 4,700,000 | 4,751,230 | ||||
| Maryland—1.2% | ||||||||
| Maryland Economic Development | ||||||||
| Corp., Senior Student Housing | ||||||||
| Revenue (University of | ||||||||
| Maryland, Baltimore Project) | 5.75 | 10/1/33 | 2,550,000 | 2,439,916 | ||||
| Maryland Industrial Development | ||||||||
| Financing Authority, EDR | ||||||||
| (Medical Waste Associates | ||||||||
| Limited Partnership Facility) | 8.75 | 11/15/10 | 3,710,000 | 2,706,816 | ||||
| Massachusetts—6.7% | ||||||||
| Massachusetts Development Finance | ||||||||
| Agency, Revenue (WGBH | ||||||||
| Educational Foundation) | ||||||||
| (Insured; AMBAC) | 5.38 | 1/1/12 | 5,750,000 a | 6,264,797 | ||||
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The Fund 9 |
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
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| Massachusetts (continued) | ||||||||
| Massachusetts Health and | ||||||||
| Educational Facilities | ||||||||
| Authority, Revenue (Civic | ||||||||
| Investments) | 9.00 | 12/15/15 | 2,000,000 | 2,447,760 | ||||
| Massachusetts Health and | ||||||||
| Educational Facilities | ||||||||
| Authority, Revenue | ||||||||
| (Massachusetts Institute of | ||||||||
| Technology) | 5.50 | 7/1/32 | 4,000,000 | 4,606,880 | ||||
| Massachusetts Health and | ||||||||
| Educational Facilities | ||||||||
| Authority, Revenue | ||||||||
| (Partners Healthcare | ||||||||
| System) | 5.75 | 7/1/32 | 3,000,000 | 3,235,740 | ||||
| Massachusetts Housing Finance | ||||||||
| Agency, Housing | 5.00 | 6/1/30 | 1,000,000 | 1,022,150 | ||||
| Massachusetts Housing Finance | ||||||||
| Agency, SFHR | 5.00 | 12/1/35 | 6,000,000 | 6,023,760 | ||||
| Massachusetts Turnpike Authority, | ||||||||
| Metropolitan Highway System | ||||||||
| Revenue (Insured; MBIA) | 5.00 | 1/1/37 | 5,205,000 | 5,274,435 | ||||
| Michigan—3.2% | ||||||||
| Charyl Stockwell Academy, | ||||||||
| COP | 5.90 | 10/1/35 | 1,000,000 | 1,006,770 | ||||
| Kent Hospital Finance Authority, | ||||||||
| Revenue (Metropolitan Hospital | ||||||||
| Project) | 6.00 | 7/1/35 | 4,000,000 | 4,288,960 | ||||
| Michigan Strategic Fund, | ||||||||
| SWDR (Genesee Power Station | ||||||||
| Project) | 7.50 | 1/1/21 | 8,720,000 | 8,700,031 | ||||
| Minnesota—1.0% | ||||||||
| Saint Paul Housing and | ||||||||
| Redevelopement Authority, | ||||||||
| Hospital Facility Revenue | ||||||||
| (HealthEast Project) | 6.00 | 11/15/25 | 1,000,000 | 1,078,970 | ||||
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10 |
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
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| Minnesota (continued) | ||||||||
| Saint Paul Housing and | ||||||||
| Redevelopment Authority, | ||||||||
| Hospital Facility Revenue | ||||||||
| (HealthEast Project) | 6.00 | 11/15/35 | 3,000,000 | 3,227,520 | ||||
| Mississippi—.7% | ||||||||
| Mississippi Business Finance | ||||||||
| Corp., PCR (Systems Energy | ||||||||
| Resources, Inc.) | 5.90 | 5/1/22 | 3,160,000 | 3,181,520 | ||||
| Nebraska—.3% | ||||||||
| Nebraska Investment Finance | ||||||||
| Authority, SFMR | 8.02 | 3/1/26 | 1,250,000 d,e | 1,274,125 | ||||
| Nevada—3.9% | ||||||||
| Clark County, | ||||||||
| IDR (Nevada Power Co. Project) | 5.60 | 10/1/30 | 3,000,000 | 3,015,270 | ||||
| Washoe County | ||||||||
| (Reno-Sparks Convention | ||||||||
| Center) (Insured; FSA) | 6.40 | 1/1/10 | 8,000,000 a | 8,711,360 | ||||
| Washoe County, | ||||||||
| Water Facility Revenue (Sierra | ||||||||
| Pacific Power Co.) | 5.00 | 7/1/09 | 5,000,000 | 5,031,650 | ||||
| New Hampshire—3.4% | ||||||||
| New Hampshire Business Finance | ||||||||
| Authority, PCR (Public Service | ||||||||
| Co.) (Insured; MBIA) | 6.00 | 5/1/21 | 2,690,000 | 2,834,749 | ||||
| New Hampshire Business Finance | ||||||||
| Authority, PCR (Public Service | ||||||||
| Co.) (Insured; MBIA) | 6.00 | 5/1/21 | 6,000,000 | 6,322,860 | ||||
| New Hampshire Industrial | ||||||||
| Development Authority, PCR | ||||||||
| (Connecticut Light) | 5.90 | 11/1/16 | 5,400,000 | 5,556,060 | ||||
| New Jersey—3.7% | ||||||||
| New Jersey Economic Development | ||||||||
| Authority, Special Facilities Revenue | ||||||||
| (Continental Airlines, Inc. Project) | 6.25 | 9/15/19 | 4,620,000 | 4,609,143 | ||||
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The Fund 11 |
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
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| New Jersey (continued) | ||||||||
| Tobacco Settlement Financing Corp. | ||||||||
| of New Jersey, Tobacco | ||||||||
| Settlement Asset-Backed Bonds | 7.00 | 6/1/41 | 10,095,000 | 11,443,894 | ||||
| New York—4.9% | ||||||||
| New York City Industrial | ||||||||
| Development Agency, Special | ||||||||
| Facility Revenue (American | ||||||||
| Airlines, Inc. John F. Kennedy | ||||||||
| International Airport Project) | 8.00 | 8/1/28 | 3,000,000 | 3,445,500 | ||||
| New York City Industrial | ||||||||
| Development Agency, Special | ||||||||
| Facility Revenue (American | ||||||||
| Airlines, Inc. John F. Kennedy | ||||||||
| International Airport Project) | 7.75 | 8/1/31 | 11,000,000 | 12,356,080 | ||||
| New York State Dormitory | ||||||||
| Authority, Revenue (Marymount | ||||||||
| Manhattan College) (Insured; | ||||||||
| Radian) | 6.25 | 7/1/29 | 4,000,000 | 4,286,640 | ||||
| New York State Dormitory | ||||||||
| Authority, Revenue (Suffolk | ||||||||
| County Judicial Facility) | 9.50 | 4/15/14 | 605,000 | 817,851 | ||||
| North Carolina—.6% | ||||||||
| North Carolina Eastern Municipal | ||||||||
| Power Agency, Power Systems | ||||||||
| Revenue | 6.70 | 1/1/19 | 2,500,000 | 2,719,075 | ||||
| Ohio—5.4% | ||||||||
| Cuyahoga County, | ||||||||
| Hospital Facilities Revenue | ||||||||
| (UHHS/CSAHS-Cuyahoga, Inc. and | ||||||||
| CSAHS/UHHS-Canton, Inc. | ||||||||
| Project) | 7.50 | 1/1/30 | 3,500,000 | 3,856,825 | ||||
| Cuyahoga County, | ||||||||
| Hospital Improvement Revenue | ||||||||
| (The Metrohealth Systems | ||||||||
| Project) | 6.15 | 2/15/09 | 10,000,000 a | 10,709,800 | ||||
|
12 |
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
|
|
|
|
|
|
||||
| Ohio (continued) | ||||||||
| Ohio Air Quality Development | ||||||||
| Authority, PCR (Cleveland | ||||||||
| Electric Illumimating Co. | ||||||||
| Project) (Insured; ACA) | 6.10 | 8/1/20 | 2,400,000 | 2,481,768 | ||||
| Ohio Housing Finance Agency, | ||||||||
| Residential Mortgage Revenue | ||||||||
| (Mortgage-Backed Securities | ||||||||
| Program) (Collateralized; GNMA) | 6.15 | 3/1/29 | 1,885,000 | 1,910,429 | ||||
| Ohio Water Development Authority, | ||||||||
| Pollution Control Facilities | ||||||||
| Revenue (Cleveland Electric | ||||||||
| Illuminating Co. Project) | ||||||||
| (Insured; ACA) | 6.10 | 8/1/20 | 4,000,000 | 4,136,280 | ||||
| Oklahoma—3.4% | ||||||||
| Oklahoma Development Finance | ||||||||
| Authority, Revenue (Saint John | ||||||||
| Health System) | 6.00 | 2/15/29 | 9,000,000 | 9,503,010 | ||||
| Oklahoma Industries Authority, | ||||||||
| Health System Revenue | ||||||||
| (Obligated Group) (Insured; | ||||||||
| MBIA) | 5.75 | 8/15/09 | 2,105,000 a | 2,248,940 | ||||
| Oklahoma Industries Authority, | ||||||||
| Health System Revenue | ||||||||
| (Obligated Group) (Insured; | ||||||||
| MBIA) | 5.75 | 8/15/29 | 2,895,000 | 3,063,228 | ||||
| Oregon—1.2% | ||||||||
| Oregon, | ||||||||
| GO (Veterans Welfare) | 5.25 | 10/1/42 | 2,000,000 | 2,026,560 | ||||
| Western Generation Agency, | ||||||||
| Cogeneration Project Revenue | ||||||||
| (Wauna Cogeneration Project) | 7.40 | 1/1/16 | 3,250,000 | 3,261,928 | ||||
| Pennsylvania—1.7% | ||||||||
| Allegheny County Port Authority, | ||||||||
| Special Transporation Revenue | ||||||||
| (Insured; MBIA) | 6.13 | 3/1/09 | 4,750,000 a | 5,093,520 | ||||
|
The Fund 13 |
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
|
|
|
|
|
|
||||
| Pennsylvania (continued) | ||||||||
| Pennsylvania Economic Development | ||||||||
| Financing Authority, Exempt | ||||||||
| Facilities Revenue (Reliant | ||||||||
| Energy Seward, LLC Project) | 6.75 | 12/1/36 | 2,000,000 | 2,129,620 | ||||
| Pennsylvania Housing Finance | ||||||||
| Agency, Multi-Family | ||||||||
| Development Revenue | 8.25 | 12/15/19 | 249,000 | 249,543 | ||||
| Rhode Island—1.5% | ||||||||
| Rhode Island Health and | ||||||||
| Educational Building Corp. | ||||||||
| Higher Educational Facilities | ||||||||
| (University of Rhode Island) | ||||||||
| (Insured; MBIA) | 5.88 | 9/15/09 | 5,910,000 a | 6,362,706 | ||||
| South Carolina—7.2% | ||||||||
| Greenville County School District, | ||||||||
| Installment Purchase Revenue | ||||||||
| (Building Equity Sooner for | ||||||||
| Tomorrow) | 7.27 | 12/1/28 | 9,500,000 d,e | 11,330,365 | ||||
| Greenville Hospital System, | ||||||||
| Hospital Facilities Revenue | ||||||||
| (Insured; AMBAC) | 5.50 | 5/1/26 | 7,000,000 | 7,478,520 | ||||
| Medical University of South | ||||||||
| Carolina, Hospital Facilities | ||||||||
| Revenue | 6.00 | 7/1/09 | 5,000,000 a | 5,372,900 | ||||
| Richland County, | ||||||||
| EIR (International Paper Co.) | 6.10 | 4/1/23 | 6,500,000 | 7,006,675 | ||||
| Tennessee—3.7% | ||||||||
| Johnson City Health and | ||||||||
| Educational Facilities Board, | ||||||||
| Hospital First Mortgage | ||||||||
| Revenue (Mountain States | ||||||||
| Health Alliance) | 7.50 | 7/1/25 | 2,000,000 | 2,322,780 | ||||
| Johnson City Health and | ||||||||
| Educational Facilities Board, | ||||||||
| Hospital First Mortgage | ||||||||
| Revenue (Mountain States | ||||||||
| Health Alliance) | 7.50 | 7/1/33 | 4,875,000 | 5,642,081 | ||||
|
14 |
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
|
|
|
|
|
|
||||
| Tennessee (continued) | ||||||||
| Memphis Center Revenue Finance | ||||||||
| Corp., Sports Facility Revenue | ||||||||
| (Memphis Redbirds) | 6.50 | 9/1/28 | 6,000,000 | 5,856,660 | ||||
| Tennessee Housing Development | ||||||||
| Agency (Homeownership Program) | 6.00 | 1/1/28 | 1,940,000 | 1,958,100 | ||||
| Texas—20.8% | ||||||||
| Alliance Airport Authority Inc., | ||||||||
| Special Facilities Revenue | ||||||||
| (American Airlines, Inc. | ||||||||
| Project) | 7.50 | 12/1/29 | 5,000,000 | 4,966,150 | ||||
| Cities of Dallas and Fort Worth, | ||||||||
| Dallas/Fort Worth | ||||||||
| International Airport, | ||||||||
| Facility Improvement Corp. | ||||||||
| Revenue (Bombardier Inc.) | 6.15 | 1/1/16 | 3,000,000 | 3,029,550 | ||||
| Gregg County Health Facilities | ||||||||
| Development Corp., HR (Good | ||||||||
| Shephard Medical Center | ||||||||
| Project) (Insured; Radian) | 6.38 | 10/1/25 | 2,500,000 | 2,730,450 | ||||
| Harris County Health Facilities | ||||||||
| Development Corp., HR | ||||||||
| (Memorial Hermann Healthcare | ||||||||
| System) | 6.38 | 6/1/11 | 7,000,000 a | 7,847,350 | ||||
| Harris County-Houston Sports | ||||||||
| Authority, Revenue (Third | ||||||||
| Lien-A-3) (Insured; MBIA) | 0.00 | 11/15/31 | 9,685,000 | 2,545,993 | ||||
| Houston, | ||||||||
| Combined Utility System First | ||||||||
| Lien Revenue (Insured; MBIA) | 5.25 | 5/15/25 | 7,785,000 | 8,268,449 | ||||
| Katy Independent School District | ||||||||
| (Permanent School Fund | ||||||||
| Guaranteed) | 6.13 | 2/15/09 | 11,360,000 a | 12,068,296 | ||||
| Lubbock Texas Housing Financing | ||||||||
| Corp., SFMR (Collateralized: | ||||||||
| FNMA and GNMA) | 6.70 | 10/1/30 | 1,800,000 | 1,851,318 | ||||
| Sabine River Authority, | ||||||||
| PCR (TXU Electric Co. Project) | 5.50 | 11/1/11 | 2,490,000 | 2,637,234 |
|
The Fund 15 |
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
|
|
|
|
|
|
||||
| Texas (continued) | ||||||||
| Sabine River Authority, | ||||||||
| PCR (TXU Electric Co. Project) | 6.45 | 6/1/21 | 4,900,000 | 5,222,420 | ||||
| Texas | ||||||||
| (Veterans) | 6.00 | 12/1/30 | 3,935,000 | 4,154,180 | ||||
| Texas | ||||||||
| (Veterans Housing Assistance | ||||||||
| Program) | 6.10 | 6/1/31 | 8,510,000 | 8,908,013 | ||||
| Texas Department of Housing and | ||||||||
| Community Affairs, Home | ||||||||
| Mortgage Revenue | ||||||||
| (Collateralized: FHLMC, FNMA | ||||||||
| and GNMA) | 9.87 | 7/2/24 | 1,700,000 d | 1,714,824 | ||||
| Texas Department of Housing and | ||||||||
| Community Affairs, Residential | ||||||||
| Mortgage Revenue | ||||||||
| (Collateralized: FHLMC, FNMA | ||||||||
| and GNMA) | 5.35 | 7/1/33 | 5,625,000 | 5,726,025 | ||||
| Texas Turnpike Authority, | ||||||||
| Central Texas Turnpike | ||||||||
| System Revenue | ||||||||
| (Insured; AMBAC) | 5.25 | 8/15/42 | 6,775,000 | 7,087,328 | ||||
| Tomball Hospital Authority, | ||||||||
| Revenue (Tomball Regional | ||||||||
| Hospital) | 6.00 | 7/1/25 | 4,650,000 | 4,804,891 | ||||
| Tyler Health Facilities | ||||||||
| Development Corp., HR | ||||||||
| (East Texas Medical Center | ||||||||
| Regional Healthcare | ||||||||
| System Project) | 6.75 | 11/1/25 | 5,850,000 | 5,931,315 | ||||
| Utah—1.3% | ||||||||
| Carbon County, | ||||||||
| Solid Waste Disposal Facility | ||||||||
| Revenue (Sunnyside | ||||||||
| Cogeneration Associates | ||||||||
| Project) | 7.10 | 8/15/23 | 3,918,000 | 4,165,108 | ||||
| Utah Housing Corp., | ||||||||
| SFMR | 5.00 | 7/1/37 | 1,640,000 | 1,643,018 | ||||
| Virginia—6.0% | ||||||||
| Henrico County Industrial | ||||||||
| Development Authority, Revenue | ||||||||
| (Bon Secours Health System) | 8.28 | 8/23/27 | 7,500,000 d | 9,701,100 | ||||
16
| Long-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) | ||||
|
|
|
|
|
|
||||
| Virginia (continued) | ||||||||
| Tobacco Settlement Financing Corp. | ||||||||
| of Virginia, Tobacco | ||||||||
| Settlement Asset-Backed Bonds | 5.63 | 6/1/37 | 6,810,000 | 6,979,024 | ||||
| Virginia Housing Development | ||||||||
| Authority, Rental Housing | 6.20 | 8/1/24 | 8,520,000 | 8,952,816 | ||||
| Washington—3.4% | ||||||||
| Energy Northwest, | ||||||||
| Revenue (Wind Project) | 6.00 | 1/1/07 | 3,670,000 a | 3,827,333 | ||||
| Washington Higher Educational | ||||||||
| Facilities Authority, Revenue | ||||||||
| (Whitman College) | 5.88 | 10/1/09 | 10,000,000 a | 10,678,900 | ||||
| Wisconsin—6.9% | ||||||||
| Badger Tobacco Asset | ||||||||
| Securitization Corp., Tobacco | ||||||||
| Settlement Asset-Backed Bonds | 8.40 | 6/1/27 | 5,000,000 d,e | 5,569,050 | ||||
| Badger Tobacco Asset | ||||||||
| Securitization Corp., Tobacco | ||||||||
| Settlement Asset-Backed Bonds | 7.00 | 6/1/28 | 14,570,000 | 16,244,093 | ||||
| Wisconsin Health and Educational | ||||||||
| Facilities Authority, Revenue | ||||||||
| (Aurora Health Care) | 6.40 | 4/15/33 | 5,500,000 | 6,022,060 | ||||
| Wisconsin Health and Educational | ||||||||
| Facilities Authority, Revenue | ||||||||
| (Marshfield Clinic) | 5.38 | 2/15/34 | 2,000,000 | 2,067,680 | ||||
| Wyoming—3.7% | ||||||||
| Sweetwater County, | ||||||||
| SWDR (FMC Corp. Project) | 5.60 | 12/1/35 | 5,000,000 | 5,225,850 | ||||
| Wyoming Student Loan Corp., | ||||||||
| Student Loan Revenue | 6.20 | 6/1/24 | 5,000,000 | 5,295,150 | ||||
| Wyoming Student Loan Corp., | ||||||||
| Student Loan Revenue | 6.25 | 6/1/29 | 5,000,000 | 5,281,300 | ||||
| U.S. Related—.7% | ||||||||
| Children’s Trust Fund of Puerto | ||||||||
| Rico, Tobacco Settlement | ||||||||
| Asset-Backed Bonds | 0.00 | 5/15/55 | 20,000,000 | 675,000 | ||||
| Puerto Rico Infrastructure | ||||||||
| Financing Authority, Special | ||||||||
| Tax Revenue (Insured; AMBAC) | 0.00 | 7/1/35 | 10,000,000 | 2,468,900 | ||||
| Total Long-Term Municipal Investments | ||||||||
| (cost $588,037,503) | 612,670,881 | |||||||
The Fund 17
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Short-Term Municipal | Coupon | Maturity | Principal | |||||
| Investments—.8% | Rate (%) | Date | Amount ($) | Value ($) | ||||
|
|
|
|
|
|
||||
| Indiana—.2% | ||||||||
| Mount Vernon, | ||||||||
| Pollution Control and Solid | ||||||||
| Waste Disposal Revenue, | ||||||||
| Refunding (General Electric | ||||||||
| Company Project) | 3.50 | 6/1/06 | 1,000,000 f | 1,000,000 | ||||
| Louisiana—.6% | ||||||||
| New Orleans, | ||||||||
| Sewerage Service, BAN | 2.97 | 7/26/06 | 2,500,000 | 2,485,175 | ||||
| Total Short-Term Municipal Investments | ||||||||
| (cost $3,471,250) | 3,485,175 | |||||||
|
|
|
|
|
|
||||
| Total Investments (cost $591,508,753) | 143.1% | 616,156,056 | ||||||
| Cash and Receivables (Net) | .1% | 503,373 | ||||||
| Preferred Stock, at redemption value | (43.2%) | (186,000,000) | ||||||
| Net Assets | 100.0% | 430,659,429 | ||||||
| a These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are |
| collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on |
| the municipal issue and to retire the bonds in full at the earliest refunding date. |
| b Non-income producing security; interest payments in default. |
| c Purchased on a delayed delivery basis. |
| d Inverse floater security—the interest rate is subject to change periodically. |
| e Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in |
| transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2006, these securities |
| amounted to $18,173,540 or 4.2% of net assets. |
| f Securities payable on demand.Variable interest rate—subject to periodic change. |
|
18 |
| 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 | 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 | |||||
|
The Fund 19 |
STATEMENT OF INVESTMENTS (Unaudited) (continued)
| Summary of Combined Ratings (Unaudited) | ||||||||||
| Fitch | or Moody’s | or | Standard & Poor’s | Value (%) † | ||||||
|
|
|
|
|
|
||||||
| AAA | Aaa | AAA | 28.2 | |||||||
| AA | Aa | AA | 18.5 | |||||||
| A | A | A | 13.8 | |||||||
| BBB | Baa | BBB | 20.3 | |||||||
| BB | Ba | BB | 3.3 | |||||||
| B | B | B | 5.6 | |||||||
| CCC | Caa | CCC | 2.0 | |||||||
| F1 | MIG1/P1 | SP1/A1 | .4 | |||||||
| Not Rated g | Not Rated g | Not Rated g | 7.9 | |||||||
| 100.0 | ||||||||||
| † | Based on total investments. | |||||||||
| g | 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. | ||||||||||
|
20 |
| STATEMENT OF ASSETS AND LIABILITIES |
| May 31, 2006 (Unaudited) |
| Cost | Value | |||
|
|
|
|
||
| Assets ($): | ||||
| Investments in securities—See Statement of Investments | 591,508,753 | 616,156,056 | ||
| Cash | 3,145,544 | |||
| Interest receivable | 11,495,239 | |||
| Receivable for investment securities sold | 1,529,427 | |||
| Prepaid expenses | 36,164 | |||
| 632,362,430 | ||||
|
|
|
|
||
| Liabilities ($): | ||||
| Due to The Dreyfus Corporation and affiliates—Note 3(a) | 342,156 | |||
| Payable for investment securities purchased | 15,125,510 | |||
| Dividends payable to Preferred shareholders | 60,348 | |||
| Commissions payable | 18,254 | |||
| Accrued expenses and other liabilities | 156,733 | |||
| 15,703,001 | ||||
|
|
|
|
||
| Auction Preferred Stock, Series A, B and C, par value | ||||
| $.001 per share (7,440 shares issued and outstanding | ||||
| at $25,000 per share liquidation value)—Note 1 | 186,000,000 | |||
|
|
|
|
||
| Net Assets applicable to Common Shareholders ($) | 430,659,429 | |||
|
|
|
|
||
| Composition of Net Assets ($): | ||||
| Common Stock, par value, $.001 per share | ||||
| (48,254,703 shares issued and outstanding) | 48,255 | |||
| Paid-in capital | 436,210,021 | |||
| Accumulated undistributed investment income—net | 423,384 | |||
| Accumulated net realized gain (loss) on investments | (30,669,534) | |||
| Accumulated net unrealized appreciation | ||||
| (depreciation) on investments | 24,647,303 | |||
|
|
|
|
||
| Net Assets applicable to Common Shareholders ($) | 430,659,429 | |||
|
|
|
|
||
| Common Shares Outstanding | ||||
| (110 million shares of $.001 par value Common Stock authorized) | 48,254,703 | |||
|
|
|
|||
| Net Asset Value per share of Common Stock ($) | 8.92 | |||
|
See notes to financial statements. |
|
The Fund 21 |
| STATEMENT OF OPERATIONS |
| Six Months Ended May 31, 2006 (Unaudited) |
| Investment Income ($): | ||
| Interest Income | 17,578,156 | |
| Expenses: | ||
| Investment advisory fee—Note 3(a) | 1,538,969 | |
| Administration fee—Note 3(a) | 769,484 | |
| Commission fees—Note 1 | 244,798 | |
| Professional fees | 42,532 | |
| Shareholders’ reports | 34,761 | |
| Directors’ fees and expenses—Note 3(b) | 25,462 | |
| Registration fees | 21,435 | |
| Shareholder servicing costs | 17,566 | |
| Custodian fees | 2,696 | |
| Interest expense—Note 2 | 32 | |
| Miscellaneous | 25,933 | |
| Total Expenses | 2,723,668 | |
| Less—reduction in investment advisory fee | ||
| due to undertaking—Note 3(a) | (307,794) | |
| Less—reduction in custody fees | ||
| due to earnings credit—Note 1(b) | (1,611) | |
| Net Expenses | 2,414,263 | |
| Investment Income—Net | 15,163,893 | |
|
|
|
|
| Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): | ||
| Net realized gain (loss) on investments | 1,434,584 | |
| Net realized gain (loss) on financial futures | 12,200 | |
| Net Realized Gain (Loss) | 1,446,784 | |
| Net unrealized appreciation (depreciation) on investments | 932,027 | |
| Net Realized and Unrealized Gain (Loss) on Investments | 2,378,811 | |
| Dividends on Preferred Stock | (2,899,657) | |
| Net Increase in Net Assets Resulting from Operations | 14,643,047 | |
|
See notes to financial statements. |
|
22 |
STATEMENT OF CHANGES IN NET ASSETS
| Six Months Ended | ||||
| May 31, 2006 | Year Ended | |||
| (Unaudited) | November 30, 2005 | |||
|
|
|
|
||
| Operations ($): | ||||
| Investment income—net | 15,163,893 | 30,171,570 | ||
| Net realized gain (loss) on investments | 1,446,784 | 3,240,390 | ||
| Net unrealized appreciation | ||||
| (depreciation) on investments | 932,027 | 3,264,265 | ||
| Dividends on Preferred Stock | (2,899,657) | (4,087,520) | ||
| Net Increase (Decrease) in Net Assets | ||||
| Resulting from Operations | 14,643,047 | 32,588,705 | ||
|
|
|
|
||
| Dividends to Common Shareholders from ($): | ||||
| Investment income—net | (12,449,714) | (28,341,929) | ||
|
|
|
|
||
| Capital Stock Transactions ($): | ||||
| Dividends reinvested—Note 1(c) | — | 663,327 | ||
| Total Increase (Decrease) in Net Assets | 2,193,333 | 4,910,103 | ||
|
|
|
|
||
| Net Assets ($): | ||||
| Beginning of Period | 428,466,096 | 423,555,993 | ||
| End of Period | 430,659,429 | 428,466,096 | ||
| Undistributed investment income—net | 423,384 | 608,862 | ||
|
|
|
|
||
| Capital Share Transactions (Common Shares): | ||||
| Increase in Common Shares Outstanding | ||||
| as a Result of Dividends Reinvested | — | 73,419 | ||
|
See notes to financial statements. |
|
The Fund 23 |
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, with respect to common stock and market price data for the fund’s common shares.
| Six Months Ended | ||||||||||||
| May 31, 2006 | Year Ended November 30, | |||||||||||
|
|
|
|
||||||||||
| (Unaudited) | 2005 | 2004 | 2003 | 2002a | 2001 | |||||||
|
|
|
|
|
|
|
|
||||||
| Per Share Data ($): | ||||||||||||
| Net asset value, | ||||||||||||
| beginning of period | 8.88 | 8.79 | 8.90 | 8.56 | 8.75 | 8.60 | ||||||
| Investment Operations: | ||||||||||||
| Investment income—net | .31b | .63b | .61b | .64b | .70b | .72 | ||||||
| Net realized and unrealized | ||||||||||||
| gain (loss) on investments | .05 | .13 | (.06) | .36 | (.26) | .11 | ||||||
| Dividends on Preferred Stock | ||||||||||||
| from investment | ||||||||||||
| income—net | (.06) | (.08) | (.05) | (.06) | (.07) | (.12) | ||||||
| Total from | ||||||||||||
| Investment Operations | .30 | .68 | .50 | .94 | .37 | .71 | ||||||
| Distributions to | ||||||||||||
| Common Shareholders: | ||||||||||||
| Dividends from investment | ||||||||||||
| income—net | (.26) | (.59) | (.61) | (.60) | (.56) | (.56) | ||||||
| Net asset value, end of period | 8.92 | 8.88 | 8.79 | 8.90 | 8.56 | 8.75 | ||||||
| Market value, end of period | 8.70 | 8.16 | 8.41 | 8.81 | 7.88 | 8.45 | ||||||
|
|
|
|
|
|
|
|
||||||
| Total Return (%) c | 9.85d | 3.78 | 2.48 | 19.89 | (.36) | 10.72 | ||||||
|
24 |
| Six Months Ended | ||||||||||||
| May 31, 2006 | Year Ended November 30, | |||||||||||
|
|
|
|
||||||||||
| (Unaudited) | 2005 | 2004 | 2003 | 2002a | 2001 | |||||||
|
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|
|
|
|
|
||||||
| Ratios/Supplemental Data (%): | ||||||||||||
| Ratio of total expenses | ||||||||||||
| to average net assets | ||||||||||||
| applicable to Common Stock e | 1.27f | 1.26 | 1.26 | 1.28 | 1.28 | 1.27 | ||||||
| Ratio of net expenses | ||||||||||||
| to average net assets | ||||||||||||
| applicable to Common Stock e | 1.12f | 1.12 | 1.25 | 1.28 | 1.28 | 1.27 | ||||||
| Ratio of net investment income | ||||||||||||
| to average net assets | ||||||||||||
| applicable to Common Stock e | 7.05f | 6.98 | 6.96 | 7.35 | 8.10 | 8.10 | ||||||
| Ratio of total expenses to total | ||||||||||||
| average net assets e | .88f | .88 | .88 | .86 | .89 | .89 | ||||||
| Ratio of net expenses to total | ||||||||||||
| average net assets e | .78f | .78 | .86 | .86 | .89 | .89 | ||||||
| Ratio of net investment income | ||||||||||||
| to total average net assets e | 4.93f | 4.88 | 4.84 | 5.10 | 5.61 | 5.64 | ||||||
| Portfolio Turnover Rate | 29.87d | 44.20 | 39.94 | 77.92 | 44.71 | 13.36 | ||||||
| Asset coverage of Preferred Stock, | ||||||||||||
| end of period | 332 | 330 | 328 | 330 | 321 | 326 | ||||||
|
|
|
|
|
|
|
|
||||||
| Net Assets, net of Preferred Stock, | ||||||||||||
| end of period ($ x 1,000) | 430,659 | 428,466 | 423,556 | 428,301 | 411,369 | 420,009 | ||||||
| Preferred Stock outstanding, | ||||||||||||
| end of period ($ x 1,000) | 186,000 | 186,000 | 186,000 | 186,000 | 186,000 | 186,000 | ||||||
| a | As required, effective December 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting | |
| Guide for Investment Companies and began accreting discount or amortizing premium on a scientific basis for debt | ||
| securities on a daily basis.The effect of this change for the period ended November 30, 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 applicable to common shareholders | ||
| from 8.08% to 8.10%. Per share data and ratios/supplemental data for periods prior to December 1, 2001 have | ||
| not been restated to reflect this change in presentation. | ||
| b | Based on average common shares outstanding at each month end. | |
| c | Calculated based on market value. | |
| d | Not annualized. | |
| e | Does not reflect the effect of dividends to Preferred Stock shareholders. | |
| f | Annualized. | |
| See notes to financial statements. | ||
|
The Fund 25 |
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1—Significant Accounting Policies:
Dreyfus Strategic Municipal Bond Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified closed-end management investment company. The fund’s investment objective is to maximize current income exempt from federal income tax to the extent believed by the fund’s investment adviser to be consistent with the preservation of capital. The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser. Dreyfus is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Mellon Trust of New England, N.A. (the “Custodian”) acts as the fund’s custodian. The Custodian is a wholly-owned subsidiary of Mellon Financial. PFPC Global Fund Services (“PFPC”), a subsidiary of PNC Bank (“PNC”), serves as the fund’s transfer agent, dividend-paying agent, registrar and plan agent.The fund’s Common Stock trades on the New York Stock Exchange under the ticker symbol DSM.
The fund has outstanding 2,480 shares of Series A, Series B and Series C for a total of 7,440 shares of Auction Preferred Stock (“APS”), with a liquidation preference of $25,000 per share (plus an amount equal to accumulated but unpaid dividends upon liquidation).APS dividend rates are determined pursuant to periodic auctions. Deutsche Bank Trust Company Americas, as Auction Agent, receives a fee from the fund for its services in connection with such auctions.The fund also compensates broker-dealers generally at an annual rate of .25% of the purchase price of the shares of APS placed by the broker-dealer in an auction.
The fund is subject to certain restrictions relating to the APS. Failure to comply with these restrictions could preclude the fund from declaring any distributions to common shareholders or repurchasing common shares and/or could trigger the mandatory redemption of APS at liquidation value.
The holders of the APS, voting as a separate class, have the right to elect at least two directors.The holders of the APS vote as a separate class on certain other matters, as required by law.The fund has desig-
|
26 |
nated Robin A. Melvin and John E. Zuccotti to represent holders of APS on the fund’s Board of Directors.
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 municipal debt securities are valued on the last business day of each week and month by an independent pricing service (the “Service”) approved by the Board of Directors. 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 securities 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 the last business day of each week and month.
(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 of premium on investments, is earned from settlement date and recognized on the
|
The Fund 27 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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 as an expense offset in the Statement of Operations.
(c) Dividends to shareholders of Common Stock (“Common Shareholder(s)”): Dividends are recorded on the ex-dividend date. Dividends from investment income-net are declared and 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 U.S. generally accepted accounting principles.
For common shareholders who elect to receive their distributions in additional shares of the fund, in lieu of cash, such distributions will be reinvested at the lower of the market price or net asset value per share (but not less than 95% of the market price) based on the record date’s respective prices. If the net asset value per share on the record date is lower than the market price per share, shares will be issued by the fund at the record date’s net asset value on the payable date of the distribution. If net asset value per share is less than 95% of the market value, shares will be issued by the fund at 95% of the market value. If the market price is lower than the net assets value per share on the record date, PFPC will purchase fund shares in the open market commencing on the payable date and reinvest those shares accordingly. As a result of purchasing fund shares in the open market, fund shares outstanding will not be affected by this form of reinvestment.
|
28 |
On May 30, 2006, the Board of Directors declared a cash dividend of $.043 per share from investment income-net, payable on June 27, 2006 to Common Shareholders of record as of the close of business on June 13, 2006.
(d) Dividends to Shareholders of APS: For APS, dividends are currently reset every 7 days for Series A,B and C.The dividend rates in effect at May 31, 2006 were as follows: Series A —3.40%, Series B—3.15% and Series C—3.34% .
(e) 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 Internal Revenue Code of 1986 as amended, 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 $32,120,749 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to November 30, 2005. If not applied, $450,592 of the carryover expires in fiscal 2007, $5,542,712 expires in fiscal 2008, $442,201 expires in fiscal 2009, $9,253,314 expires in fiscal 2010, $5,474,907 expires in fiscal 2011 and $10,957,023 expires in fiscal 2012.
The tax character of distributions paid to shareholders during the fiscal year ended November 30, 2005 were as follows: tax exempt income $32,429,449. 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 $100 million unsecured line of credit primarily to be utilized for temporary or emergency purposes. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings.
|
The Fund 29 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The average daily amount of borrowings outstanding under the line of credit during the period ended May 31, 2006 was approximately $1,354, with a related weighted average annualized interest rate of 4.69% .
NOTE 3—Investment Advisory Fee, Administration Fee and Other Transactions With Affiliates:
(a) The fee payable by the fund, pursuant to the provisions of an Investment Advisory Agreement with Dreyfus, is payable monthly based on an annual rate of .50% of the value of the fund’s average weekly net assets (including net assets representing auction preferred stock outstanding). The fund also has an Administration Agreement with Dreyfus, a Custody Agreement with the Custodian and a Transfer Agency and Registrar Agreement with PFPC. The fund pays in the aggregate for administration, custody and transfer agency services a monthly fee based on an annual rate of .25% of the value of the fund’s average weekly net assets (including net assets representing auction preferred stock outstanding); out-of pocket transfer agency and custody expenses are paid separately by the fund.
Dreyfus has agreed from December 1, 2005 through October 31, 2006, to waive receipt of a portion of the fund’s investment advisory fee, in the amount of .10% of the value of the fund’s average weekly net assets (including net assets representing auction preferred stock outstanding). The reduction in investment advisory fee, pursuant to the undertaking, amounted to $307,794 during the period ended May 31, 2006.
During the period ended May 31, 2006, the fund was charged $1,926 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 consist of: management fees $392,092, custodian fees $738 and chief compliance officer fees $1,605, which are offset against an expense reimbursement currently in effect in the amount of $52,279.
|
30 |
(b) 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 May 31, 2006, amounted to $192,054,763 and $180,358,423, respectively.
At May 31, 2006, accumulated net unrealized appreciation on investments was $24,647,303, consisting of $34,587,369 gross unrealized appreciation and $9,940,066 gross unrealized depreciation.
At May 31, 2006, 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 31 |
NOTES
|
32 |
| OFFICERS AND DIRECTORS | ||||||
| D re y f u s S t ra t e g i c M u n i c i p a l | B o n d | Fu n d , | I n c . |
| 200 Park Avenue | ||
| New York, NY 10166 | ||
| Directors | Portfolio Managers | |
| Joseph S. DiMartino | Joseph P. Darcy | |
| David W. Burke | A. Paul Disdier | |
| William Hodding Carter, III | Douglas J. Gaylor | |
| Ehud Houminer | Joseph A. Irace | |
| Richard C. Leone | Colleen A. Meehan | |
| Hans C. Mautner | W. Michael Petty | |
| Robin A. Melvin † | Scott Sprauer | |
| John E. Zuccotti † | James Welch | |
| † Auction Preferred Stock Directors | Monica S.Wieboldt | |
| Bill Vasiliou | ||
| Officers | ||
| President | Investment Adviser | |
| Stephen E. Canter | and Administrator | |
| Executive Vice Presidents | The Dreyfus Corporation | |
| Stephen R. Byers | ||
| A. Paul Disdier | Custodian | |
| Vice President | Mellon Trust of New England, N.A. | |
| Mark N. Jacobs | Counsel | |
| Vice President and Secretary | ||
| Michael A. Rosenberg | Stroock & Stroock & Lavan LLP | |
| Vice President and Assistant Secretaries | Transfer Agent, | |
| James Bitetto | Dividend-Paying Agent, | |
| Joni Lacks Charatan | Registrar and Disbursing Agent | |
| Joseph M. Chioffi | ||
| Janette E. Farragher | PFPC Global Fund Services | |
| John B. Hammalian | (Common Stock) | |
| Robert R Mullery | Deutsche Bank Trust Company Americas | |
| Jeff Prusnofsky | (Auction Preferred Stock) | |
| Treasurer | ||
| James Windels | Auction Agent | |
| Assistant Treasurers | Deutsche Bank Trust Company Americas | |
| Erik D. Naviloff | (Auction Preferred Stock) | |
| Robert Robol | ||
| Robert Svagna | Stock Exchange Listing | |
| Gavin C. Reilly | NYSE Symbol: DSM | |
| Chief Compliance Officer | Initial SEC Effective Date | |
| Joseph W. Connolly | ||
| 11/22/89 | ||
The Net Asset Value appears in the following publications:Barron’s,Closed-End Bond Funds section under the heading “Municipal Bond Funds”every Monday;Wall Street Journal,Mutual Funds section under the heading “Closed-End Funds”every Monday; NewYork Times,Business section under the heading “Closed-End Bond Funds—Municipal Bond Funds”every Monday.
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940,as amended,that the fund may purchase shares of its common stock in the open market when it can do so at prices below the then current net asset value per share.
|
The Fund 33 |
For More Information
| Dreyfus Strategic Municipal | Transfer Agent, | |
| Bond Fund, Inc. | Dividend-Paying Agent, | |
| 200 Park Avenue | Registrar and Disbursing Agent | |
| New York, NY 10166 | PFPC Global Fund Services | |
| Manager | (Common Stock) | |
| 101 Federal Street | ||
| The Dreyfus Corporation | ||
| Boston, MA 02110 | ||
| 200 Park Avenue | ||
| New York, NY 10166 | ||
| Custodian | ||
| Mellon Trust of | ||
| New England, N.A. | ||
| One Boston Place | ||
| Boston, MA 02108 | ||
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 1-800-SEC-0330.
Information regarding how the fund voted proxies relating to portfolio securities for the 12-month period ended June 30, 2005, is available on the SEC’s website at http://www.sec.gov and without charge, upon request, by calling 1-800-645-6561.
| 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. | Schedule of Investments. | |
| Not applicable. | ||
| Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management | |
| Investment Companies. | ||
| Not applicable. | ||
| Item 8. | Portfolio Managers of Closed-End Management Investment Companies. | |
| Not applicable. | ||
| Item 9. | Purchases of Equity Securities by Closed-End Management Investment Companies | |
| Affiliated Purchasers. | ||
| Not applicable. | ||
| 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) | 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. | ||
| (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
Dreyfus Strategic Municipal Bond Fund, Inc.
| By: | /s/ Stephen E. Canter | |
| Stephen E. Canter | ||
| President | ||
| Date: | July 31, 2006 | |
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: | July 31, 2006 | |
| By: | /s/ James Windels | |
| James Windels | ||
| Chief Financial Officer | ||
| Date: | July 31, 2006 | |
| 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) | ||