Dreyfus
Strategic Municipal
Bond Fund, Inc.
ANNUAL REPORT November 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Selected Information
7 Statement of Investments
15 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
18 Financial Highlights
19 Notes to Financial Statements
24 Report of Independent Auditors
25 Important Tax Information
26 Dividend Reinvestment Plan
28 Proxy Results
29 Officers and Directors
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Strategic Municipal Bond Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Strategic Municipal
Bond Fund, Inc., covering the 12-month period from December 1, 1999 through
November 30, 2000. 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, Paul Disdier.
Despite some modest fluctuations, municipal bond prices have generally risen
over the 12-month reporting period. Positive supply-and-demand influences helped
support a municipal bond market rally. During the second half of the reporting
period, most sectors of the municipal bond market also benefited from slowing
economic growth. In addition to the moderating effects of the Federal Reserve
Board' s interest-rate hikes during 1999 and the first half of 2000, the U.S.
economy has slowed in response to higher energy prices and a weak euro.
In general, the overall investment environment that prevailed in the second half
of the 1990s provided returns well above their historical averages, establishing
unrealistic expectations for some investors. We believe that as the risks of the
stock market have become more apparent recently, the relative stability and
income potential of municipal bonds can make them an attractive investment as
part of a well-balanced portfolio.
Thank you for investing in Dreyfus Strategic Municipal Bond Fund, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
December 15, 2000
DISCUSSION OF FUND PERFORMANCE
Paul Disdier, Portfolio Manager
How did Dreyfus Strategic Municipal Bond Fund, Inc. perform during the period?
For the 12-month reporting period ended November 30, 2000, Dreyfus Strategic
Municipal Bond Fund, Inc. provided a total return of 7.70%.(1) The fund produced
income dividends of $0.5604 per share, which is equal to a distribution rate of
6.90% over the same period.(2)
We attribute the fund' s good performance to a relatively strong investment
environment for municipal bonds over the past year. The market rally was driven
primarily by positive supply-and-demand factors and, later in the reporting
period, signs of an economic slowdown. We are particularly pleased that the fund
has provided good performance relative to common stocks during most of the
period, and that the fund's market price has improved as investor demand for
municipal bonds has risen.
What is the fund's investment approach?
The fund seeks high current income exempt from federal income taxes by investing
in long-term, tax-exempt municipal bonds.
In so doing, we look for bonds that we believe can provide high current income.
We strive to find such opportunities through analyses of individual bonds'
structures. Within the context of our bond structure analysis, we pay
particularly close attention to each bond' s maturity and early redemption
features.
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 new securities that offered currently higher than average income payments.
We have also sought to upgrade the fund with newly issued bonds that, in our
opinion, have better structural or income characteristics than existing hold-
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
ings. When such opportunities arise, we usually sell bonds that are close to
redemption or maturity. In addition, we conduct credit analysis of our holdings
in an attempt to avoid potential defaults on interest and principal payments.
What other factors influenced the fund's performance?
Favorable economic and market conditions positively influenced the fund over the
past year. When the reporting period began on November 1, 1999, the U.S. economy
was growing strongly, raising concerns that long-dormant inflationary pressures
might reemerge. In response, the Federal Reserve Board (the "Fed") raised
short-term interest rates at its February, March and May 2000 meetings. However,
tax-exempt yields later declined modestly -- and prices rose accordingly -- when
the Fed did not change interest rates at subsequent meetings in June, August,
October and November. The Fed held monetary policy steady because of signs that
its previous rate hikes were having the desired effect of slowing the economy.
In addition, the continuing strength of the U.S. economy helped keep municipal
bond yields relatively low compared to taxable bonds. Most states and
municipalities enjoyed higher tax revenues, curtailing their need to borrow and
resulting in a reduced supply of securities compared to the same period one year
earlier. At the same time that the supply of new bonds was falling, demand was
strong from individuals and financial institutions seeking to protect their
wealth in a "flight to quality" from heightened volatility in the stock market.
When demand rises and supply falls, prices of existing bonds tend to move
higher.
In this environment, we were able to improve protection from the effects of
early redemptions and enhance the fund's credit quality. These improvements were
made possible as we continued to put to work the proceeds of our issuance of
auction-rate preferred stock, which occurred just a few months before the
reporting period -- and the market rally -- began.
Over the past year, we invested primarily in bonds with what we considered very
attractive yields in order to maintain the fund's income stream and achieve a
broader level of diversification. We found such high yields in, for example,
industrial development bonds backed by airlines, paper companies and utility
companies.
What is the fund's current strategy?
Our strategy remains the same: to maintain as high a level of tax-exempt income
as possible in an investment environment characterized by relatively low yields.
To that end, we have continued to attempt to replace older bonds nearing
maturity or redemption with newer bonds with comparable income characteristics.
Also, as a result of new purchases of long-term bonds, we have maintained the
fund' s average effective duration -- a measure of sensitivity to changing
interest rates -- toward the long end of its range. This duration management
strategy is designed to lock in high yields for as long as practical.
December 15, 2000
(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.
(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.
The Fund
SELECTED INFORMATION
November 30, 2000 (Unaudited)
Market Price per share November 30, 2000 $8 1/8
Common Shares Outstanding November 30, 2000 47,783,925
New York Stock Exchange Ticker Symbol DSM
MARKET PRICE (NEW YORK STOCK EXCHANGE)
Fiscal Year Ended November 30, 2000
---------------------------------------------------------------------------------------------------------------
QUARTER QUARTER QUARTER QUARTER
ENDED ENDED ENDED ENDED
FEBRUARY 29, 2000 MAY 31, 2000 AUGUST 31, 2000 NOVEMBER 30, 2000
----------------------------------------------------------------------------------------------------------------
High $8 $81_8 $81_2 $81_2
Low 71_8 71_4 77_8 715_16
Close 75_8 77_8 83_8 81_8
PERCENTAGE GAIN (LOSS) based on change in Market Price*
November 22, 1989 (commencement of operations)
through November 30, 2000 74.50%
December 1, 1990 through November 30, 2000 72.57
December 1, 1995 through November 30, 2000 22.64
December 1, 1999 through November 30, 2000 13.30
March 1, 2000 through November 30, 2000 12.18
June 1, 2000 through November 30, 2000 6.71
September 1, 2000 through November 30, 2000 (1.33)
NET ASSET VALUE PER SHARE
November 22, 1989 (commencement of operations) $9.32
November 30, 1999 8.56
February 29, 2000 8.31
May 31, 2000 8.25
August 31, 2000 8.75
November 30, 2000 8.60
PERCENTAGE GAIN (LOSS) based on change in Net Asset Value*
November 22, 1989 (commencement of operations)
through November 30, 2000 98.19%
December 1, 1990 through November 30, 2000 83.83
December 1, 1995 through November 30, 2000 25.08
December 1, 1999 through November 30, 2000 7.70
March 1, 2000 through November 30, 2000 8.95
June 1, 2000 through November 30, 2000 7.81
September 1, 2000 through November 30, 2000 (.04)
(*)WITH DIVIDENDS REINVESTED.
STATEMENT OF INVESTMENTS
November 30, 2000
Principal
LONG-TERM MUNICIPAL INVESTMENTS--97.7% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA--.5%
Alabama Industrial Development Authority, SWDR
(Pine City Fiber Co.) 6.45%, 12/1/2023 3,000,000 2,872,020
ALASKA--4.1%
Alaska Housing Finance Corporation:
6.25%, 6/1/2035 (Insured; MBIA) 7,825,000 8,027,746
6.05%, 6/1/2039 (Insured; MBIA) 12,185,000 12,367,653
Valdez Marine Terminal, Revenue
(BP Pipeline, Inc.) 5.50%, 10/1/2028 4,500,000 4,319,055
ARIZONA--1.4%
Apache County Industrial Development Authority, PCR
(Tuscon Electric Power Co.) 5.85%, 3/1/2028 9,500,000 8,270,320
ARKANSAS--.9%
Arkansas Development Finance Authority, SFMR
6.25%, 1/1/2032 5,000,000 5,148,550
CALIFORNIA--2.8%
California Health Facilities Financing Authority,
Health Facility Financing Revenue
(Cedars-Sinai Medical Center) 6.25%, 12/1/2034 3,750,000 3,870,113
California Statewide Communities
Development Authority, COP
(The Internext Group) 5.375%, 4/1/2030 5,000,000 4,372,400
Los Angeles Department of Water and Power,
Waterworks Revenue
6.10%, 10/15/2039 (Insured; FGIC) 8,000,000 8,550,960
COLORADO--.5%
Colorado Health Facilities Authority, Revenue
(American Housing Foundation 1, Inc.) 10.25%, 12/1/2020 5,600,000 (a) 3,080,000
CONNECTICUT--2.7%
Connecticut Development Authority, PCR
(Connecticut Light and Power) 5.95%, 9/1/2028 14,000,000 12,731,740
Connecticut Housing Finance Authority,
Housing Mortgage Finance Program
5.85%, 11/15/2028 3,420,000 3,424,617
DELAWARE--1.0%
Delaware Health Facilities Authority, Revenue
(Beebe Medical Center) 6.80%, 6/1/2024 5,905,000 5,723,539
DISTRICT OF COLUMBIA--1.2%
Metropolitan Washington Airports Authority,
Special Facilities Revenue
(Caterair International Corp.) 10.125%, 9/1/2011 6,920,000 6,891,974
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA--6.5%
Florida Housing Finance Corporation, Housing Revenue
(Seminole Ridge Apartments) 6%, 4/1/2041 (Insured; GNMA) 6,415,000 6,412,434
Florida Board of Education, Capital Outlay 7.858%, 6/1/2019 15,000,000 (b,c) 16,022,400
Lee County Industrial Development Authority,
Health Care Facilities Revenue
(Shell Point Village) 5.50%, 11/15/2029 1,500,000 1,241,505
Orange County Health Facilities Authority, Revenue
(Orlando Regional Healthcare System) 6%, 10/1/2026 3,500,000 3,465,665
Palm Beach County, Solid Waste IDR:
(Okeelanta Power Limited Partnership)
6.70%, 2/15/2015 5,000,000 (a) 2,950,000
(Osceola Power Limited Partnership)
6.95%, 1/1/2022 5,000,000 (a) 2,950,000
South Lake County Hospital District, Revenue
(South Lake Hospital, Inc.) 5.80%, 10/1/2034 6,000,000 5,661,360
GEORGIA--1.8%
Private Colleges and Universities Facilities Authority, Revenue
(Clark Atlanta University)
8.25%, 1/1/2015 (Prerefunded 1/1/2003) 9,630,000 (d) 10,771,348
IDAHO--.4%
Idaho Housing & Finance Association, SFMR
6.35%, 1/1/2030 (Insured; FNMA) 2,500,000 2,574,550
ILLINOIS--4.5%
Chicago-O'Hare International Airport, Special Facility Revenue
(Delta Airlines) 6.45%, 5/1/2018 2,790,000 2,752,530
Illinois Development Finance Authority, Revenue:
(Community Rehabilitation Providers
Facilities Acquisition Program):
6.05%, 7/1/2019 5,290,000 4,755,340
8.50%, 9/1/2010 1,645,000 1,682,638
HR (Adventist Health Systems/Sunbelt) 5.50%, 11/15/2029 4,175,000 3,384,714
Illinois Health Facilities Authority, Revenue:
(OSF Healthcare Systems) 6.25%, 11/15/2029 12,000,000 11,633,160
(Advocate Network Health Care) 6.125%, 11/15/2022 3,000,000 2,978,430
INDIANA--3.6%
Burns Harbor Industrial Solid Waste Disposal Facilities, Revenue
(Bethlehem Steel Corp.) 8%, 4/1/2024 6,000,000 5,343,420
Franklin Township School Building Corp. 6.125%, 1/15/2022 6,000,000 6,374,160
Indianapolis Airport Authority, Revenue 7.92%, 11/15/2031 4,375,000 (b,c) 3,823,925
Jasper County, EDR (Georgia Pacific Corp.)
5.60%, 4/1/2029 7,000,000 5,732,440
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY--.5%
Kenton County Airport Board, Airport Revenue
(Special Facilities--Delta Airlines) 6.125%, 2/1/2022 3,000,000 2,871,270
LOUISIANA--4.4%
Lake Charles Harbor and Terminal District,
Port Facilities Revenue
(Trunkline LNG Co.) 7.75%, 8/15/2022 15,000,000 15,998,550
Parish of De Soto, EIR
(International Paper Co.) 6.55%, 4/1/2019 2,900,000 2,925,897
West Feliciana Parish, PCR:
(Entergy Gulf States) 6.60%, 9/1/2028 4,000,000 4,018,400
(Gulf States) 5.80%, 12/1/2015 3,500,000 3,299,380
MARYLAND--1.2%
Baltimore County, PCR (Bethlehem Steel Corp.)
7.50%, 6/1/2015 5,000,000 4,384,500
Maryland Industrial Development Financing Authority, EDR
(Medical Waste Associates Limited Partnership)
8.75%, 11/15/2010 4,135,000 (a) 3,039,225
MASSACHUSETTS--1.9%
Massachusetts Health and Educational
Facilities Authority, Revenue
(Beth Israel Hospital) 7.508%, 7/1/2025 (Insured; AMBAC) 3,250,000 (b) 3,294,688
Massachusetts Port Authority, Special Project Revenue
(Harborside Hyatt) 10%, 3/1/2026 7,000,000 7,195,580
Pittsfield, SWDR (Vicon Recovery Associates)
7.95%, 11/1/2004 1,110,000 1,116,582
MICHIGAN--1.7%
Michigan Hospital Finance Authority, HR
(Genesys Health System Obligated Group)
8.125%, 10/1/2021 (Prerefunded 10/1/2005) 5,000,000 (d) 5,849,300
Michigan Strategic Fund, SWDR
(Genesee Power Station) 7.50%, 1/1/2021 4,000,000 4,094,960
MISSISSIPPI--1.4%
Mississippi Business Finance Corporation, PCR
(Systems Energy Resources, Inc.) 5.90%, 5/1/2022 9,070,000 8,376,054
MISSOURI--1.7%
Jackson County Industrial Development Authority,
Health Facilities Revenue
(Carondelet Health Corp.) 9%, 7/1/2020 6,615,000 6,689,617
Saint Louis Industrial Development Authority
(Saint Louis Convention Center) 7.25%, 12/15/2035 3,250,000 3,273,953
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA--2.4%
Clark County, IDR (Nevada Power Company)
5.50%, 10/1/2030 7,000,000 5,827,640
Washoe County (Reno-Sparks Convention Center)
6.40%, 7/1/2029 (Insured; FSA) 8,000,000 8,615,120
NEW HAMPSHIRE--1.8%
New Hampshire Industrial Development Authority, PCR
(Connecticut Light) 5.90%, 11/1/2016 5,400,000 4,970,808
New Hampshire Business Finance Authority, PCR
(Public Service Co.) 6%, 5/1/2021 6,000,000 5,523,480
NEW JERSEY--3.1%
New Jersey Economic Development Authority:
First Mortgage Revenue
(The Evergreens) 9.25%, 10/1/2022 4,925,000 5,410,605
Special Facilities Revenue (Continental Airlines, Inc.):
6.40%, 9/15/2023 7,000,000 6,325,900
7.20%, 11/15/2030 7,000,000 6,982,570
NEW YORK--4.6%
Nassau Health Care Corporation, Health System Revenue
5.75%, 8/1/2029 (Insured; FSA) 10,500,000 10,704,540
New York City 8%, 8/15/2018 (Prerefunded 8/15/2001) 1,485,000 (d) 1,545,187
New York City Industrial Development Agency, Civic Facility
Revenue (YMCA of Greater New York)
8%, 8/1/2016 (Prerefunded 8/1/2001) 2,910,000 (d) 3,033,530
New York State Dormitory Authority, Revenue:
Judicial Facility Lease (Suffolk County) 9.50%, 4/15/2014 605,000 692,271
(Marymount Manhattan College) 6.25%, 7/1/2029 4,000,000 4,232,200
Tsasc Inc.:
6.25%, 7/15/2027 2,500,000 2,498,175
6.375%, 7/15/2039 4,500,000 4,486,725
NORTH CAROLINA--.4%
North Carolina Eastern Municipal Power Agency,
Power Systems Revenue 6.70%, 1/1/2019 2,500,000 2,621,175
OHIO--2.6%
Cuyahoga County, HR (Metrohealth Systems)
6.15%, 2/15/2029 10,000,000 9,757,100
Ohio Air Quality Development Authority, PCR
6.10%, 8/1/2020 2,400,000 2,261,064
Ohio Water Development Authority, PCR
(Cleveland Electric) 6.10%, 8/1/2020 4,000,000 3,768,440
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA--2.4%
Oklahoma Development Finance Authority, Revenue
(St. John Health System) 6%, 2/15/2029 9,000,000 9,258,660
Oklahoma Industries Authority, Health System Revenue
(Obligation Group) 5.75%, 8/15/2029 (Insured; MBIA) 5,000,000 5,029,300
PENNSYLVANIA--4.7%
Allegheny County Port Authority,
Special Transportation Revenue
6.125%, 3/1/2029 (Insured; MBIA) 4,750,000 5,006,595
Beaver County Industrial Development Authority, PCR
(Cleveland Electric) 7.625%, 5/1/2025 8,800,000 9,311,192
Pennsylvania Economic Development Financing Authority:
Exempt Facilities Revenue
(National Gypsum Company) 6.125%, 11/1/2027 5,000,000 3,942,300
RRR (Northhampton Generating Project)
6.60%, 1/1/2019 4,200,000 4,053,798
Pennsylvania Housing Finance Agency,
Multi-Family Development Revenue
8.25%, 12/15/2019 292,000 298,868
Washington County Authority, Capital Funding Revenue
(Capital Projects & Equipment Program)
6.15%, 12/1/2029 (Insured; AMBAC) 5,000,000 5,503,300
RHODE ISLAND--1.0%
Rhode Island Health & Educational Building Corporation
Higher Educational Facilities (University of Rhode Island)
5.875%, 9/15/2029 (Insured; MBIA) 5,910,000 6,061,414
SOUTH CAROLINA--.8%
South Carolina Medical Facilities, Hospital Facilities Revenue
6%, 7/1/2019 5,000,000 5,081,650
TENNESSEE--2.8%
Memphis Center City Revenue Finance Corp.
Sports Facility Revenue
(Memphis Redbirds) 6.50%, 9/1/2028 6,000,000 5,337,660
Tennessee Housing Development Agency
(Homeownership Program):
6%, 1/1/2028 5,910,000 5,972,764
6.40%, 7/1/2031 5,000,000 5,206,450
TEXAS--9.4%
Gregg County Health Facilities Development Corporation, HR
(Good Shepherd Medical Center) 6.375%, 10/1/2025 2,500,000 2,592,325
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
Houston Airport System, Special Facilities Revenue,
Airport Improvement (Continental Airlines)
6.125%, 7/15/2017 2,875,000 2,547,394
Katy Independent School District
6.125%, 2/15/2032 11,360,000 11,864,725
Sabine River Authority, PCR
(TXU Electric) 6.45%, 6/1/2021 3,000,000 2,966,070
Springhill Courtland Heights Public Facility Corp., MFHR
5.85%, 12/1/2028 6,030,000 5,556,585
Texas:
(Veterans ) 6%, 12/1/2030 3,935,000 4,004,531
(Veterans Housing Assistance Program) 6.10%, 6/1/2031 8,510,000 8,710,410
Texas Department of Housing and Community Affairs,
Collateralized Home Mortgage Revenue
8.953%, 7/2/2024 6,850,000 (b) 7,774,750
Texas Public Property Finance Corp., Revenue
(Mental Health and Retardation):
8.625%, 9/1/2001 340,000 350,421
8.875%, 9/1/2011 (Prerefunded 9/1/2001) 5,100,000 (d) 5,359,386
Tyler Health Facilities Development Corp., HR
(East Texas Medical Center Regional Health Care System)
6.75%, 11/1/2025 5,850,000 4,707,729
UTAH--1.6%
Carbon County, SWDR (Sunnyside Cogeneration):
7.10%, 8/15/2023 4,975,000 4,691,723
Zero Coupon, 8/15/2024 1,545,000 250,954
Tooele County, Hazardous Waste Treatment Revenue
(Union Pacific) 5.70%, 11/1/2026 5,000,000 4,334,350
VIRGINIA--5.6%
Fairfax County Water Authority, Revenue
6.687%, 4/1/2029 4,000,000 (b,c) 4,073,640
Henrico County Industrial Development Authority, Revenue
(Bon Secours Health Care System) 7.163%, 8/23/2027 7,500,000 (b) 8,259,375
Virginia Housing Development Authority:
MFHR 7.05%, 5/1/2018 12,000,000 12,487,200
Rental Housing 6.20%, 8/1/2024 8,520,000 8,692,871
WASHINGTON--1.7%
Washington Higher Education Facilities Authority, Revenue
(Whitman College) 5.875%, 10/1/2029 10,000,000 10,150,500
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN--5.6%
Wisconsin Health and Educational Facilities Authority, Revenue
(Aurora Health Care, Inc.) 5.60%, 2/15/2029 10,800,000 8,986,680
Wisconsin Housing and Economic Development Authority
Homeownership Revenue:
8.099%, 7/1/2025 10,600,000 (b,c) 10,967,184
6.25%, 9/1/2027 13,300,000 13,529,691
WYOMING--2.5%
Sweetwater County, SWDR (FMC Corp.):
7%, 6/1/2024 2,200,000 2,222,924
6.90%, 9/1/2024 2,000,000 2,011,940
Wyoming Student Loan Corporation, Student Loan Revenue
6.20%, 6/1/2024 5,000,000 5,218,400
6.25%, 6/1/2029 5,000,000 5,229,150
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $595,498,051) 583,450,051
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL INVESTMENTS--.7%
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA--.1%
Hapeville Development Authority, IDR, VRDN
(Hapeville Hotel, Ltd.) 4.15% (LOC: Deutsche Bank) 800,000 (e) 800,000
MICHIGAN--.3%
Delta County Economic Development Corp.,
EIR, VRDN
(Oates-Mead- Escanaba Paper) 4.25% (LOC: Scotia Bank) 1,500,000 (e) 1,500,000
MISSISSIPPI--.1%
Harrison County, PCR, VRDN
(Du Pont De Nemours) 4.25% 800,000 (e) 800,000
NEW YORK--.1%
New York City Municipal Water Finance Authority, VRDN
Water & Sewer System Revenue 4.15% (Insured; FGIC) 100,000 (e) 100,000
WYOMING--.1%
Lincoln County, PCR (Exxon) 4.25% 600,000 (e) 600,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $3,800,000) 3,800,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $599,298,051) 98.4% 587,250,051
CASH AND RECEIVABLES (NET) 1.6% 9,831,008
NET ASSETS 100.0% 597,081,059
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
COP Certificate of Participation
EDR Economic Development Revenue
EIR Environmental Improvement
Revenue
FGIC Financial Guaranty Insurance
Company
FNMA Federal National Mortgage
Association
FSA Financial Security Assurance
GNMA Government National Mortgage
Association
HR Hospital Revenue
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Investors
Assurance Insurance
Corporation
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
RRR Resources Recovery Revenue
SFMR Single Family Mortgage Revenue
SWDR Solid Waste Disposal Revenue
VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 22.3
AA Aa AA 25.7
A A A 11.0
BBB Baa BBB 18.8
BB Ba BB 8.4
B B B .8
F-1+, F-1 VMIG1, MIG1, P1 SP1, A1 .6
Not Rated (f) Not Rated (f) Not Rated (f) 12.4
100.0
(A) NON-INCOME PRODUCING SECURITY, INTEREST PAYMENTS IN DEFAULT.
(B) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE PERIODICALLY.
(C) 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 NOVEMBER 30, 2000,
THESE SECURITIES AMOUNTED TO $34,887,149 OR 5.8% OF NET ASSETS.
(D) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(E) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE SUBJECT TO PERIODIC
CHANGE.
(F) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE INVESTMENT ADVISER TO BE OF COMPARABLE QUALITY TO
THOSE RATED SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 599,298,051 587,250,051
Cash 57,678
Receivable for investment securities sold 11,990,625
Interest receivable 11,629,882
Prepaid expenses 10,721
610,938,957
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 367,199
Payable for investment securities purchased 13,183,320
Commissions payable 30,539
Dividends payable to preferred shareholders 55,382
Accrued expenses 221,458
13,857,898
--------------------------------------------------------------------------------
NET ASSETS ($) 597,081,059
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Auction Preferred Stock, Series A, B and C, par value $.001 per share
(7,440 total shares issued and outstanding at
$25,000 per share liquidation preference)--Note 1 186,000,000
Common Stock, par value, $.001 per share (47,783,925 shares
issued and outstanding) 47,784
Paid-in capital 445,615,876
Accumulated undistributed investment income--net 783,581
Accumulated net realized gain (loss) on investments (23,318,182)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (12,048,000)
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 411,081,059
--------------------------------------------------------------------------------
NET ASSETS ($) 597,081,059
--------------------------------------------------------------------------------
COMMON SHARES OUTSTANDING
(110 million shares of $.001 par value Common Stock authorized) 47,783,925
NET ASSET VALUE PER COMMON STOCK, offering and redemption price per share ($)
8.60
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended November 30, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 38,712,025
EXPENSES:
Management fee--Note 3(a) 2,952,414
Administration fee--Note 3(a) 1,476,206
Commission fees--Note 1 514,433
Professional fees 223,753
Shareholders' reports 68,606
Shareholder servicing costs 51,447
Directors' fees and expenses--Note 3(b) 46,611
Registration fees 42,628
Custodian fees 5,248
Interest expense--Note 2 2,556
Miscellaneous 36,698
TOTAL EXPENSES 5,420,600
INVESTMENT INCOME--NET 33,291,425
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (4,672,749)
Net unrealized appreciation (depreciation) on investments 8,042,876
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 3,370,127
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 36,661,552
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended November 30,
-----------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 33,291,425 28,853,202
Net realized gain (loss) on investments (4,672,749) (4,834,127)
Net unrealized appreciation (depreciation)
on investments 8,042,876 (39,136,429)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 36,661,552 (15,117,354)
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Common Stock (26,778,113) (27,789,863)
Preferred Stock (7,597,500) (1,147,008)
TOTAL DIVIDENDS (34,375,613) (28,936,871)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Proceeds from issuance of Preferred Stock -- 186,000,000
Dividends reinvested--Note 1(c) -- 1,179,838
Offering costs charged to paid-in capital resulting
from issuance of Preferred Stock (163,370) (2,060,000)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (163,370) 185,119,838
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,122,569 141,065,613
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 594,958,490 453,892,877
END OF PERIOD 597,081,059 594,958,490
Undistributed investment income--net 783,581 1,867,769
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (COMMON SHARES):
INCREASE IN COMMON SHARES OUTSTANDING
AS A RESULT OF DIVIDENDS REINVESTED -- 124,560
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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 and market price data for the fund's shares.
Year Ended November 30,
-------------------------------------------------------------------
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 8.56 9.52 9.49 9.54 9.60
Investment Operations:
Investment income--net .70 .58 .60 .62 .64
Net realized and unrealized
gain (loss) on investments .06 (.90) .05 (.01) (.08)
Total from Investment Operations .76 (.32) .65 .61 .56
Distributions:
Dividends from investment income--net:
Common Stock (.56) (.58) (.62) (.66) (.62)
Preferred Stock(e) (.16) (.02) -- -- --
Total Distributions (.72) (.60) (.62) (.66) (.62)
Capital Stock transactions--net effect
of Preferred Stock offering (.00)(a) (.04) -- -- --
Net asset value, end of period 8.60 8.56 9.52 9.49 9.54
Market value, end of period 81_8 711_16 103_16 105_8 93_4
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (B) 13.30 (19.36) 2.23 16.60 12.61
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets
applicable to Common Stock 1.34(c,d) .91(c,d) .81 .81 .82
Ratio of net investment income
to average net assets
applicable to Common Stock 8.25(c,d) 6.64(c,d) 6.26 6.55 6.82
Portfolio Turnover Rate 27.58 32.58 6.33 2.95 13.47
Asset coverage of Preferred Stock,
end of period 321 320 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, net of Preferred Stock,
end of period ($ x 1,000) 411,081 408,958 453,893 446,152 440,681
Preferred Stock outstanding,
end of period ($ x 1,000)(f) 186,000 186,000 -- -- --
(A) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(B) CALCULATED BASED ON MARKET VALUE.
(C) DOES NOT REFLECT THE EFFECT OF DIVIDENDS TO PREFERRED STOCK SHAREHOLDERS.
(D) THE RATIO OF EXPENSES TO TOTAL AVERAGE NET ASSETS AND THE RATIO OF NET
INVESTMENT INCOME TO TOTAL AVERAGE NET ASSETS WERE .92% AND 5.64%, RESPECTIVELY,
FOR THE YEAR ENDED NOVEMBER 30, 2000 AND .84% AND 6.13%, RESPECTIVELY, FOR THE
YEAR ENDED NOVEMBER 30, 1999.
(E) BASED ON AVERAGE COMMON SHARES OUTSTANDING.
(F) PREFERRED SHARES WERE ISSUED ON SEPTEMBER 22, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
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 ("Dreyfus") serves as the fund's investment adviser and
administrator. Dreyfus is a direct subsidiary of Mellon Bank, N.A., which is a
wholly-owned subsidiary of Mellon Financial Corporation ("Mellon"). Boston Safe
Deposit and Trust Company (the "Custodian") acts as the fund's custodian. The
Custodian is a wholly-owned subsidiary of Mellon. 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 has outstanding 2,480 shares each 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. Bankers Trust, 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. Robin A. Pringle and John E. Zuccotti
represent holders of APS on the fund's Board of Directors.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 municipal debt securities (excluding
options and financial futures on municipal and U.S. treasury securities) are
valued on the last business day of each week and month by an independent pricing
service (" 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. Investments
not listed on an exchange or the national securities market, or securities for
which there were no transactions, are valued at the average of the most recent
bid and asked prices. Bid price is used when no asked price is available.
(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 premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date.
(c) Dividends 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 are normally declared and paid at least annually. 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.
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) as defined in the dividend reinvestment plan.
On November 30, 2000, the Board of Directors declared a cash dividend to Common
Shareholders of $.0467 per share from investment income-net, payable on December
29, 2000 to Common Shareholders of record as of the close of business on
December 14, 2000.
(d) Dividends to APS shareholders: For APS, dividends are currently reset every
7 days. The dividend rates in effect at November 30, 2000 were as follows:
Series A -- 4.10%, Series B -- 4.10% and Series C - 4.05%.
(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 approximately $23,318,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 2000. If not
applied, $4,499,000 of the carryover expires in fiscal 2002, $9,312,000 expires
in fiscal 2003, $3,964,000 expires in fiscal 2007 and $5,543,000 expires in
2008.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, including the financing of redemptions. Interest is charged to the
fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings.
The average daily amount of borrowings outstanding under the line of credit
during the period ended November 30, 2000, was approximately $11,500 with a
related weighted average annualized interest rate of 6.37%.
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 1% of the value of the fund's average weekly net assets. 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 1% of the value of the fund's
average weekly net assets; out-of pocket transfer agency and custody expenses
are paid separately by the fund.
(b) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $2,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Director Emeritus receives 50% of such compensation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended November 30, 2000, amounted to
$160,579,694 and $161,890,517, respectively.
At November 30, 2000, accumulated net unrealized depreciation on investments was
$12,048,000, consisting of $16,035,319 gross unrealized appreciation and
$28,083,319 gross unrealized depreciation.
At November 30, 2000, 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
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors Dreyfus Strategic Municipal Bond Fund, Inc.
We have audited the accompanying statement of assets and liabilities of Dreyfus
Strategic Municipal Bond Fund, Inc., including the statement of investments, as
of November 30, 2000, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and financial highlights for each of the years indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of November
30, 2000 and confirmation of securities not held by the custodian by
correspondence with others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Strategic Municipal Bond Fund, Inc. at November 30, 2000, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the indicated years, in conformity with accounting principles generally
accepted in the United States.
New York, New York
January 9, 2001
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund hereby designates all the dividends
paid from investment income-net during the fiscal year ended November 30, 2000
as "exempt-interest dividends" (not generally subject to regular Federal income
tax).
As required by Federal tax law rules, shareholders will receive notification of
their portion of the fund' s taxable ordinary dividends and capital gain
distributions paid for the 2000 calendar year on Form 1099-DIV which will be
mailed by January 31, 2001.
The Fund
DIVIDEND REINVESTMENT PLAN (Unaudited)
Under the fund's Dividend Reinvestment Plan (the "Plan"), a holder of the Common
Stock (" Common Shareholder" ) who has fund shares registered in his name will
have all dividends and distributions reinvested automatically by PFPC Global
Fund Services, as Plan agent (the "Agent"), in additional shares of the fund at
the lower of prevailing market price or net asset value (but not less than 95%
of market value at the time of valuation) unless such Common Shareholder elects
to receive cash as provided below. If market price is equal to or exceeds net
asset value, shares will be issued at net asset value. If net asset value
exceeds market price or if a dividend or other distribution payable only in cash
is declared, the Agent, as agent for the Plan participants, will buy fund shares
in the open market. A Plan participant is not relieved of any income tax that
may be payable on such dividends or distributions.
A Common Shareholder who owns fund shares registered in the name of his
broker/dealer or other nominee (i.e., in "street name") may not participate in
the Plan, but may elect to have cash dividends and distributions reinvested by
his broker/dealer or other nominee in additional shares of the fund if such
service is provided by the broker/dealer or other nominee; otherwise such
dividends and distributions will be treated like any other cash dividend or
distribution.
A Common Shareholder who has fund shares registered in his name may elect to
withdraw from the Plan at any time for a $5.00 fee and thereby elect to receive
cash in lieu of shares of the fund. Changes in elections must be by direct mail
to PFPC Global Fund Services, Attention: Closed-End Funds, Post Office Box 8030,
Boston, Massachusetts 02266, or by telephone at 1-800-331-1710, and should
include the shareholder' s name and address as they appear on the Agent's
records. Elections received by the Agent will be effective only if received
prior to the record date for any distribution.
The Agent maintains all Common Shareholder accounts in the Plan and furnishes
written confirmations of all transactions in the account. Shares in the account
of each Plan participant will be held by the
Agent in non-certificated form in the name of the participant, and each such
participant's proxy will include those shares purchased pursuant to the Plan.
The fund pays the Agent's fee for reinvestment of dividends and distributions.
Plan participants pay a pro rata share of brokerage commissions incurred with
respect to the Agent's open market purchases in connection with the reinvestment
of dividends or distributions.
The fund reserves the right to amend or terminate the Plan as applied to any
dividend or distribution paid subsequent to written notice of the change sent to
Plan participants at least 90 days before the record date for such dividend or
distribution. The Plan also may be amended or terminated by the Agent on at
least 90 days' written notice to Plan participants.
The Fund
PROXY RESULTS (Unaudited)
During the fiscal year ended November 30, 2000, holders of both common stock and
Auction Preferred Stock, voted together as a single class on the following
proposals presented at the annual shareholders' meeting held on May 12, 2000.
The descriptions of each proposal and the number of shares voted are as follows:
Shares
-------------------------------------------------
For Authority Withheld
-------------------------------------------------
To elect three Class I Directors:((+))
Hodding Carter, III 39,611,682 627,990
Joseph S. DiMartino 39,701,047 538,624
Richard C. Leone 39,778,681 535,546
Shares
---------------------------------------------------------------------------------
For Against Abstained
---------------------------------------------------------------------------------
To ratify the selection of
Ernst & Young LLP
as independent auditors
of the fund 39,778,681 126,466 334,526
((+)) THE TERMS OF THESE CLASS I DIRECTORS EXPIRE IN 2003.
OFFICERS AND DIRECTORS
Dreyfus Strategic Municipal Bond Fund, Inc.
200 Park Avenue
New York, NY 10166
DIRECTORS
Joseph S. DiMartino
David W. Burke
Hodding Carter, III
Ehud Houminer
Richard C. Leone
Hans C. Mautner
Robin A. Pringle ((+))
John E. Zuccotti ((+)
((+)) AUCTION PREFERRED STOCK DIRECTORS
OFFICERS
President
Stephen E. Canter
Vice President and Treasurer
Joseph Connolly
Executive Vice President
Paul Disdier
Vice President
Mark N. Jacobs
Secretary
John B. Hammalian
Assistant Secretary
Steven F. Newman
Assistant Secretary
Michael A. Rosenberg
Assistant Treasurer
Gregory S. Gruber
PORTFOLIO MANAGERS
Joseph P. Darcy
A. Paul Disdier
Douglas J. Gaylor
Joseph A. Irace
Colleen A. Meehan
PORTFOLIO MANAGERS (CONTINUED)
Richard J. Moynihan
W. Michael Petty
Scott Sprauer
Samuel J. Weinstock
Monica S. Wieboldt
INVESTMENT ADVISER AND ADMINISTRATOR
The Dreyfus Corporation
CUSTODIAN
Boston Safe Deposit and Trust Company
COUNSEL
Stroock & Stroock & Lavan LLP
TRANSFER AGENT, DIVIDEND-PAYING AGENT, REGISTRAR AND PLAN AGENT
PFPC Global Fund Services
(Common Stock)
Bankers Trust (Auction Preferred Stock)
AUCTION AGENT
Bankers Trust (Auction Preferred Stock)
STOCK EXCHANGE LISTING
NYSE Symbol: DSM
INITIAL SEC EFFECTIVE DATE
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; NEW YORK 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
For More Information
Dreyfus Strategic Municipal
Bond Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA 02108
Transfer Agent &
Dividend-Paying Agent,
Registrar and Disbursing Agent
PFPC Global Fund Services
(Common Stock)
101 Federal Street
Boston, MA 02110
(c) 2001 Dreyfus Service Corporation 852AR0011