Dreyfus Strategic Municipals, Inc.
SEMIANNUAL REPORT March 31, 2002
DREYFUS STRATEGIC MUNICIPALS, 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 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
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2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
15 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
18 Financial Highlights
20 Notes to Financial Statements
29 Officers and Directors
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Strategic Municipals, Inc.
LETTER FROM THE CHAIRMAN
Dear Shareholder:
We present this semiannual report for Dreyfus Strategic Municipals, Inc.,
covering the six-month period from October 1, 2001 through March 31, 2002.
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,
W. Michael Petty.
As of the reporting period's close, we have seen signs of economic recovery,
which may signal an end to the U.S. economic recession. As the economy has
gained strength, however, the municipal bond market has given back a portion of
the gains achieved during its 2001 rally.
Indeed, the municipal bond market's direction becomes clearer only when viewed
from a perspective measured in full economic cycles. Although you may become
excited about the tax-exempt income opportunities or worried about the
challenges presented under current market conditions, we encourage you to stop
and think of your long-term goals before you take action. And, as always, we
urge you to solicit the advice of a professional financial advisor who can help
you navigate a smoother course to financial security for yourself and your
family. For our part, and as we have for more than 50 years, we at The Dreyfus
Corporation are ready to serve you with a full range of investment alternatives
and our experienced teams of portfolio managers.
Thank you for your continued confidence and support.
Sincerely,
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
April 15, 2002
DISCUSSION OF FUND PERFORMANCE
W. Michael Petty, Portfolio Manager
How did Dreyfus Strategic Municipals, Inc. perform during the period?
For the six-month period ended March 31, 2002, the fund achieved a total return
of 0.69%.(1) Over the same period, the fund provided income dividends of $0.306
per share, which is equal to an annualized distribution rate of 6.38%.(2)
We attribute the fund' s performance to market weakness late in the reporting
period, which offset earlier gains. Municipal bond prices declined sharply in
March when the Federal Reserve Board suggested that its aggressive interest-rate
reduction campaign was probably finished. The fund's total return was also hurt
by poor performance among tax-exempt bonds issued by airlines, which were
hard-hit in the aftermath of the September 11 attacks.
We are pleased, however, that on March 14, 2002 the fund's board of directors
announced an increase in the fund's income dividend from $0.051 per share to
$0.060 per share payable April 25, 2002 for shareholders of record on April 11,
2002.
What is the fund's investment approach?
The fund's investment objective is to maximize current income exempt from
federal income tax to the extent consistent with the preservation of capital.
The fund ordinarily invests at least 80% of its net assets in municipal
obligations and at least 50% of its net assets in municipal obligations
considered investment grade.
To this end, we have constructed the portfolio by seeking income opportunities
through analysis of each bond's structure, including paying close attention to
each bond's yield, maturity and early redemption features.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
Over time, many of the fund's relatively higher yielding bonds mature or are
redeemed by their issuers, and we generally attempt to replace those bonds with
what we believe are comparable securities at then prevailing yields. When we
believe an opportunity exists, we also may seek to upgrade the portfolio's
investments with newly issued bonds that, in our opinion, have better structural
or income characteristics than existing holdings.
What other factors influenced the fund's performance?
During the first half of the reporting period, the fund generally benefited from
lower interest rates. In response to persistent economic weakness, which was
intensified by the September 11 terrorist attacks, the Federal Reserve Board
(the "Fed") continued to reduce short-term interest rates during the fourth
quarter of 2001, taking the benchmark federal funds rate down to its lowest
level in 40 years. As a result, generally yields on municipal bonds continued to
fall, and their prices rose.
In the second half of the reporting period, however, the Fed shifted from its
accommodative monetary policy to a neutral stance, primarily in response to
evidence that the U.S. economy had begun to recover. Many fixed-income investors
interpreted this shift as a signal that the Fed's next moves would be toward
higher interest rates. While we do not expect any rate hikes in the immediate
future, these expectations were nonetheless factored into long-term municipal
bond prices, erasing earlier gains.
In this environment, we continued to seek income opportunities. We reduced the
fund's holdings of lower rated securities and reallocated those assets primarily
to bonds with single-A and double-A credit ratings. We focused on
income-oriented securities selling at modest premiums to their face values
In addition, the fund has continued to benefit from the leverage provided by its
issuance of preferred stock. Because the fund's borrowing costs fell along with
short-term interest rates while long-term bond yields remained relatively stable
during the reporting period, this strategy proved particularly beneficial. We
recently locked in those low borrowing costs for a portion of the fund's
preferred shares.
However, the benefits of our yield enhancement strategy were offset during the
reporting period by weakness among the fund's corporate holdings, particularly
tax-exempt bonds issued by airlines that were hurt in the aftermath of the
September 11 terrorist attacks. Although these bonds have rebounded since
hitting their lows in January 2002, they have not yet reached pre-attack price
levels.
What is the fund's current strategy?
Consistent with the fund's investment objective, we have continued to emphasize
income-oriented bonds. However, we have also been careful to focus on issuers
that, in our opinion, enjoy good credit quality. After bonds are purchased, we
generally hold them for the long term until they mature or are redeemed.
April 15, 2002
(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. MARKET PRICE PER SHARE, NET ASSET VALUE PER SHARE AND
INVESTMENT RETURN FLUCTUATE. 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 ANNUALIZED, DIVIDED BY THE MARKET PRICE
PER SHARE AT THE END OF THE PERIOD.
The Fund
STATEMENT OF INVESTMENTS
March 31, 2002 (Unaudited)
STATEMENT OF INVESTMENTS
Principal
LONG-TERM MUNICIPAL INVESTMENTS--149.0% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA--4.0%
Alabama 21st Century Authority, Tobacco Settlement
Revenue 5.75%, 12/1/2019 8,900,000 8,720,398
Alabama Industrial Development Authority,
SWDR (Pine City Fiber Co.)
6.45%, 12/1/2023 (Guaranteed; Boise Cascade Corp.) 5,000,000 4,821,600
Houston County Health Care Authority
6.25%, 10/1/2030 (Insured; AMBAC) 8,000,000 8,456,160
ALASKA--2.4%
Alaska Housing Finance Corp.:
6%, 12/1/2040 2,000,000 2,039,240
6%, 6/1/2049 (Insured; MBIA) 6,250,000 6,369,375
Valdez, Marine Terminal Revenue
(BP Pipeline Inc. Project) 5.50%, 10/1/2028 5,000,000 4,883,450
ARKANSAS--2.8%
Arkansas Development Finance Authority, SFMR
(Mortgage Backed Securities Program):
6.45%, 7/1/2031 (Guaranteed: FNMA, GNMA) 9,830,000 10,308,623
6.25%, 1/1/2032 (Guaranteed; GNMA) 5,000,000 5,188,600
ARIZONA--7.0%
Apache County Industrial Development Authority, PCR
(Tucson Electric Power Co. Project):
5.85%, 3/1/2028 4,000,000 3,704,160
5.875%, 3/1/2033 2,050,000 1,895,348
Maricopa Pollution Control Corp., PCR
(Public Service Co.) 5.75%, 11/1/2022 6,000,000 5,844,360
Pima County Industrial Development Authority,
Industrial Revenue (Tucson Electric Power Co. Project)
6%, 9/1/2029 15,500,000 14,626,265
Scottsdale Industrial Development Authority, HR
(Scottsdale Healthcare) 5.80%, 12/1/2031 6,000,000 5,901,780
Tempe Industrial Development Authority, IDR
(California Micro Devices Corp. Project)
10.50%, 3/1/2018 6,720,000 6,759,245
CALIFORNIA--4.3%
California Pollution Control Financing Authority, PCR
(Southern California Edison Co.) 7%, 2/28/2008 5,000,000 4,999,750
State of California 9.264%, 12/1/2018 (Insured; FSA) 10,000,000 (a,b) 10,054,300
Los Angeles Regional Airports Improvement Corp., Lease
Revenue (Los Angeles International Airport):
6.35%, 11/1/2025 4,930,000 4,621,382
7.50%, 12/1/2024 4,500,000 4,373,460
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA--1.5%
District of Columbia Tobacco Settlement Financing Corp.,
Asset Backed 6.75%, 5/15/2040 8,000,000 8,366,400
FLORIDA--8.6%
Escambia County, PCR (Champion International
Corp. Project) 6.90%, 8/1/2022 3,500,000 3,668,385
Florida Board of Education, Capital Outlay
9.557%, 6/1/2019 20,000,000 (a,b) 20,720,400
Florida Housing Finance Corp., Housing Revenue
(Nelson Park Apartments)
6.40%, 3/1/2040 (Insured; FSA) 12,380,000 12,925,339
Highlands County Health Facilities Authority, HR
(Adventist Health Systems) 5.25%, 11/15/2028 7,750,000 6,938,885
Orange County Health Facilities Authority, HR
(Regional Healthcare Systems) 6%, 10/1/2026 2,000,000 2,018,000
South Lake County Hospital District, Health, Hospital and
Nursing Home Revenue (South Lake Hospital Inc.)
5.80%, 10/1/2034 1,200,000 1,176,096
GEORGIA--3.2%
Georgia Housing Finance Authority,
SFMR 6.45%, 12/1/2030 7,450,000 7,819,371
Private Colleges and Universities Facilities Authority,
Revenue (Clark Atlanta University Project)
8.25%, 1/1/2015 (Prerefunded 1/1/2003) 8,900,000 (c) 9,740,516
HAWAII--1.6%
Hawaii Department of Transportation,
Special Facility Revenue:
(Caterair International Corp. Project)
10.125%, 12/1/2010 3,800,000 3,818,544
(Continental Airlines, Inc.) 5.625%, 11/15/2027 6,820,000 4,883,529
IDAHO--1.0%
Power County Industrial Development Corp, SWDR
(FMC Corp. Project) 6.45%, 8/1/2032 5,750,000 5,436,108
ILLINOIS--9.1%
Chicago:
6.125%, 1/1/2028 (Insured; FGIC) 15,815,000 16,937,707
(Wastewater Transmission Revenue)
6%, 1/1/2030 (Insured; MBIA) 3,000,000 3,347,400
Chicago-O'Hare International Airport,
Special Facility Revenue:
(Delta Airlines Project) 6.45%, 5/1/2018 4,855,000 4,592,927
(United Airlines, Inc. Project) 6.30%, 5/1/2016 2,800,000 1,715,112
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
Illinois Development Finance Authority, Revenue:
(Community Rehabilitation Providers Facilities
Acquisition Program) 6%, 7/1/2015 3,500,000 3,475,955
Hospital (AdventistHealth System / Sunbelt
Obligated Group) 5.50%, 11/15/2029 2,125,000 1,933,219
Illinois Health Facilities Authority, Revenue:
(Advocate Network Health Care) 6.125%, 11/15/2022 4,020,000 4,130,751
(OSF Healthcare System) 6.25%, 11/15/2029 8,730,000 8,903,116
(Swedish American Hospital) 6.875%, 11/15/2030 4,995,000 5,276,768
INDIANA--6.3%
Franklin Township Independent School Building Corp.,
First Mortgage 6.125%, 1/15/2022 6,500,000 7,379,515
Indiana Housing Finance Authority, SFMR 5.95%, 1/1/2029 3,640,000 3,691,470
Indianapolis Airport Authority
(United Airlines Project) 6.50%, 11/15/2031 35,325,000 23,668,103
KANSAS--1.9%
Wichita, HR (Christian Health System Inc.)
6.25%, 11/15/2024 10,000,000 10,294,200
KENTUCKY--3.6%
Kenton County Airport Board, Airport Revenue
(Special Facilities-Delta Airlines Project):
7.50%, 2/1/2020 6,060,000 6,060,242
7.125%, 2/1/2021 6,000,000 5,838,840
6.125%, 2/1/2022 9,200,000 8,225,168
LOUISIANA--1.7%
Parish of Saint James, SWDR
(Freeport-McMoRan Partnership Project)
7.70%, 10/1/2022 10,000,000 9,661,000
MARYLAND--.0%
Baltimore County, PCR
(Bethlehem Steel Corp. Project) 7.50%, 6/1/2015 2,500,000 (d) 172,000
MASSACHUSETTS--2.3%
Massachusetts Industrial Finance Agency, Revenue
(Ogden Haverhill Project) 5.60%, 12/1/2019 6,000,000 4,773,780
Massachusetts Health and Educational Facilities Authority,
Revenue:
(Beth Israel Hospital Issue)
10.12%, 7/1/2025 (Insured; AMBAC) 3,000,000 (a) 3,138,750
(Partners Healthcare System) 5.75%, 7/1/2032 5,000,000 4,974,600
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN--3.2%
Michigan Hospital Finance Authority, HR
(Ascension Health Credit) 6.125%, 11/15/2026 5,000,000 5,168,700
(Genesys Health System Obligated Group)
8.125%, 10/1/2021 (Prerefunded 10/1/2005) 5,000,000 (c) 5,836,700
Michigan Strategic Fund, SWDR
(Genesee Power Station Project) 7.50%, 1/1/2021 6,900,000 6,644,700
MINNESOTA--.8%
Minneapolis and Saint Paul Metropolitan Airports
Commission, Special Facilities Revenue
(Northwest Airlines Project) 7%, 4/1/2025 5,000,000 4,374,150
MISSISSIPPI--4.9%
Claiborne County, PCR (Middle South Energy, Inc.)
(System Energy Resources, Inc.) 6.20%, 2/1/2026 5,545,000 5,429,609
Mississippi Business Finance Corp., PCR (System Energy
Resource Inc. Project) 5.875%, 4/1/2022 22,790,000 21,846,722
MISSOURI-- .8%
Saint Louis Industrial Development Authority, Revenue
(Saint Louis Convention Center) 7.25%, 12/15/2035 4,250,000 4,406,315
MONTANA--1.6%
Montana Board of Housing, Single Family Mortgage
6.45%, 6/1/2029 8,740,000 9,117,743
NEVADA--5.4%
Clark County, IDR:
(Nevada Power Company Project):
5.60%, 10/1/2030 8,550,000 7,527,249
5.90%, 10/1/2030 5,000,000 4,582,800
(Southwest Gas Corp.) 7.50%, 9/1/2032 4,000,000 4,098,920
Washoe County (Reno-Sparks Convention Center)
6.40%, 7/1/2029 (Insured; FSA) 12,000,000 13,591,560
NEW HAMPSHIRE--2.5%
New Hampshire Health and Educational Facilities Authority,
Revenue (Exeter Project):
6%, 10/1/2024 1,000,000 1,001,230
5.75%, 10/1/2031 1,000,000 963,600
New Hampshire Industrial Development Authority, PCR
(Connecticut Light and Power) 5.90%, 11/1/2016 5,000,000 4,965,900
New Hampshire Business Finance Authority, PCR, Revenue
(Public Service Co. Project) 6%, 5/1/2021 7,000,000 6,936,790
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY--4.8%
New Jersey Economic Development Authority, Special
Facility Revenue (Continental Airlines Inc. Project):
6.40%, 9/15/2023 3,000,000 2,644,680
6.25%, 9/15/2029 8,000,000 6,826,560
New Jersey Health Facilities Financing Authority, Revenue
(Christian Health Care Center) 8.75%, 7/1/2018 14,585,000 17,299,852
NEW MEXICO--.7%
Farmington, PCR (Tucson Electric Power Co., San Juan)
6.95%, 10/1/2020 4,000,000 4,072,360
NEW YORK--3.9%
Long Island Power Authority, New York Electric
System Revenue 7.399%, 12/1/2016 10,000,000 (a,b) 10,158,000
New York State Energy Research and Development
Authority, Electric Facilities Revenue
(Long Island Lighting Co.):
7.15%, 2/1/2022 3,000,000 3,090,810
6.90%, 8/1/2022 3,275,000 3,453,389
TSASC, Inc., Tobacco Flexible Amortization Bonds
6.375%, 7/15/2039 4,500,000 4,742,190
NORTH CAROLINA--.5%
Charlotte, Special Facilities Revenue (Charlotte / Douglas
International Airport) 5.60%, 7/1/2027
(Guaranteed; U.S. Air) 5,145,000 2,643,192
NORTH DAKOTA--2.4%
North Dakota Housing Finance Agency, Home
Mortgage Revenue (Housing Finance Program):
6.50%, 1/1/2031 9,700,000 10,100,707
6.15%, 7/1/2031 3,385,000 3,468,203
OHIO--3.2%
Ohio Air Quality Development Authority, PCR
6.10%, 8/1/2020 3,000,000 3,001,290
Ohio Housing Finance Agency,
Residential Mortgage Revenue:
6.25%, 9/1/2020 (Collateralized; GNMA) 4,855,000 5,056,288
6.35%, 9/1/2031 (Collateralized; GNMA) 4,860,000 5,060,135
Ohio Water Development Authority, Pollution Control
Facilities Revenue (Cleveland Electric Co.)
6.10%, 8/1/2020 4,350,000 4,385,365
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA--2.8%
Oklahoma Industries Authority
(Health System Obligated Group) 5.75%, 8/15/2029 12,230,000 12,419,565
Tulsa Municipal Airport Trust, Revenue
(American Airlines) 7.35%, 12/1/2011 2,900,000 2,880,599
PENNSYLVANIA--3.2%
Beaver County Industrial Development Authority, PCR
(Cleveland Electric Project) 7.625%, 5/1/2025 7,000,000 7,529,270
Pennsylvania Housing Financing Authority
9.855%, 4/1/2025 6,000,000 (a,b) 6,037,500
York County Hospital Authority, Revenue
(Health Center--Lutheran Social Services)
6.50%, 4/1/2022 4,250,000 4,014,295
SOUTH CAROLINA--5.4%
Piedmont Municipal Power Agency, Electric Revenue
6.55%, 1/1/2016 1,690,000 1,690,254
Spartanburg County, Hospital Facilities Revenue
(Spartanburg General Hospital System)
11.179%, 4/13/2022 (Prerefunded 4/15/2002) 7,700,000 (a,c) 8,040,186
Tobacco Settlement Revenue Management Authority,
Tobacco Settlement Revenue:
6.375%, 5/15/2028 9,825,000 9,933,566
6.375%, 5/15/2030 10,100,000 10,231,704
TENNESSEE--5.6%
Knox County Health Educational and Housing Facilities
Board, Hospital Facilities Revenue
(Baptist Health System of Eastern Tennessee)
6.50%, 4/15/2031 6,000,000 5,880,840
Memphis Center City Revenue Finance Corp.,
Tennessee Sports Facility Revenue
(Memphis Redbirds) 6.50%, 9/1/2028 10,000,000 9,901,000
Tennessee Housing Development Agency
(Homeownership Program) 6.40%, 7/1/2031 14,435,000 15,122,972
TEXAS--12.9%
Austin Convention Enterprises Inc., Convention Center
6.70%, 1/1/2028 4,000,000 4,023,120
Brazos River Authority, PCR (TXU Energy Company)
5.75%, 5/1/2036 3,570,000 3,569,000
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
Dallas-Fort Worth International Airport, Airport Facility
Improvement Corp., Revenue (American Airlines Inc.)
6.375%, 5/1/2035 (Guaranteed; American Airlines Inc.) 8,500,000 6,909,650
Harris County Health Facilities Development Corp., HR
(Memorial Hermann Hospital System Project)
6.375%, 6/1/2029 8,500,000 8,755,510
Houston Airport System, Special Facilities Revenue,
Airport Improvement (Continental Airlines):
6.125%, 7/15/2027 8,100,000 6,557,679
6.75%, 7/1/2029 8,250,000 7,234,343
5.70%, 7/15/2029 3,750,000 2,821,163
Port Corpus Christi Authority, Nueces County General
Revenue (Union Pacific Corp.) 5.65%, 12/1/2022 7,750,000 7,412,643
Sabine River Authority, PCR (TXU Electric Co. Project):
6.45%, 6/1/2021 9,000,000 9,117,000
5.50%, 5/1/2022 4,000,000 4,008,640
Texas Department of Housing and Community Affairs,
Collateralized Home Mortgage Revenue
12.096%, 7/2/2024 4,850,000 (a) 5,474,437
Tomball Hospital Authority, Health, Hospital and Nursing Home
Revenue (Tomball Regional Hospital) 6%, 7/1/2025 3,500,000 3,347,645
Tyler Health Facilities Development Corp., HR
(East Texas Medical Center Regional Health Care
System Project) 6.75%, 11/1/2025 3,000,000 2,372,730
UTAH--.9%
Carbon County, SWDR (Sunnyside Cogeneration):
7.10%, 8/15/2023 4,780,000 4,848,019
Zero Coupon, 8/15/2024 1,545,000 389,371
VERMONT--1.2%
Vermont Housing Finance Agency, Single Family Housing
6.40%, 11/1/2030 (Insured; FSA) 6,270,000 6,518,229
VIRGINIA--2.9%
Fairfax County Water Authority, Revenue
9.845%, 4/1/2029 5,000,000 (a,b) 5,003,300
Greater Richmond Convention Center Authority,
Hotel Tax Revenue (Convention Center
Expansion Project) 6.25%, 6/15/2032 10,500,000 11,131,050
WASHINGTON--5.1%
Energy Northwest:
Electric Revenue 9.67%, 7/1/2018 (Insured; MBIA) 10,000,000 (a,b) 10,985,900
Wind Project Revenue 5.875%, 7/1/2020 3,000,000 2,875,020
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (CONTINUED)
Public Utility District No. 1 of Pend Orielle County, Electric
Revenue 6.375%, 1/1/2015 3,755,000 3,910,194
Seattle, Water System Revenue
6%, 7/1/2029 (Insured; FGIC) 10,000,000 10,561,600
WEST VIRGINIA--6.2%
Braxton County, SWDR (Weyerhaeuser Co. Project):
5.40%, 5/1/2025 12,750,000 11,710,492
6.125%, 4/1/2026 14,000,000 14,143,220
West Virginia Housing Development Fund, Housing Finance
6.50%, 5/1/2028 5,935,000 6,184,329
West Virginia Water Development Authority, Water
Development Revenue 6.375%, 7/1/2039 2,250,000 2,409,638
WISCONSIN--4.6%
Wisconsin Health and Educational Facilities Authority, Health,
Hospital and Nursing Home Revenue
(Aurora Health Care Inc.) 5.60%, 2/15/2029 9,705,000 8,794,574
Wisconsin Housing and Economic Development Authority:
11.306%, 7/1/2025 6,250,000 (a,b) 6,538,437
6.45%, 9/1/2030 9,915,000 10,335,892
WYOMING--.8%
Sweetwater County, SWDR (FMC Corp. Project):
7%, 6/1/2024 2,200,000 2,213,090
6.90%, 9/1/2024 2,000,000 1,993,080
U. S. RELATED--1.4%
Guam Housing Corp., SFMR
5.75%, 9/1/2031 (Collateralized; FHLMC) 965,000 964,952
Puerto Rico Highway and Transportation Authority,
Transportation Revenue 6%, 7/1/2039 6,000,000 6,791,460
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $826,389,500) 149.0% 825,352,559
CASH AND RECEIVABLES (NET) 2.4% 13,640,003
PREFERRED STOCK, AT REDEMPTION VALUE (51.4%) (285,000,000)
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 100.0% 533,992,562
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
FGIC Financial Guaranty Insurance
Company
FHLMC Federal Home Loan Mortgage
Corporation
FNMA Federal National Mortgage
Association
FSA Financial Security Assurance
GNMA Government National Mortgage
Association
HR Hospital Revenue
IDR Industrial Development Revenue
MBIA Municipal Bond Investors
Assurance Insurance
Corporation
PCR Pollution Control Revenue
SFMR Single-Family Mortgage Revenue
SWDR Solid Waste Disposal Revenue
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 24.0
AA Aa AA 14.7
A A A 15.5
BBB Baa BBB 21.8
BB Ba BB 12.6
B B B 3.1
CCC Caa CCC .2
Not Rated (e) Not Rated (e) Not Rated (e) 8.1
100.0
(A) INVERSE FLOATER SECURITY--THE INTEREST RATE IS SUBJECT TO CHANGE
PERIODICALLY.
(B) 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 MARCH 31,
2002, THESE SECURITIES AMOUNTED TO $69,497,837 OR 8.3% OF NET ASSETS.
(C) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND
INTEREST ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE
EARLIEST REFUNDING DATE.
(D) NON-INCOME PRODUCING SECURITY. INTEREST PAYMENT IN DEFAULT.(
(E) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S,
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE
RATED SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2002 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 826,389,500 825,352,559
Interest receivable 16,313,606
Prepaid expenses 270,030
841,936,195
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 582,435
Cash overdraft due to Custodian 1,864,739
Dividends payable to preferred shareholders 244,804
Commissions payable 8,726
Accrued expenses 242,929
2,943,633
--------------------------------------------------------------------------------
AUCTION PREFERRED STOCK, Series M, T, W, Th and F
par value $.001 per share (11,400 shares
issued and outstanding at $25,000 per share
liquidation preference)--Note 1 285,000,000
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS ($) 553,992,562
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Common Stock par value, $.001 per share
(58,791,584 shares issued and outstanding) 58,792
Paid-in capital 554,180,263
Accumulated undistributed investment income--net 10,816,594
Accumulated net realized gain (loss) on investments (10,026,146)
Accumulated net unrealized appreciation
(depreciation) on investments (1,036,941)
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 553,992,562
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(500 million shares of $.001 par value Common Stock authorized) 58,791,584
NET ASSET VALUE PER SHARE OF COMMON STOCK ($) 9.42
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2002 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 28,320,851
EXPENSES:
Management fee--Note 3(a) 3,141,195
Commission fees--Note 1 368,055
Shareholder servicing costs 72,108
Custodian fees--Note 3(b) 69,270
Shareholders' reports 47,069
Directors' fees and expenses--Note 3(c) 38,737
Professional fees 27,480
Registration fees 25,161
Miscellaneous 23,714
TOTAL EXPENSES 3,812,789
INVESTMENT INCOME--NET 24,508,062
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 294,928
Net unrealized appreciation (depreciation) on investments (18,477,954)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (18,183,026)
DIVIDENDS ON PREFERRED STOCK (2,409,921)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,915,115
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 2002 Year Ended
(Unaudited) September 30, 2001(a)
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 24,508,062 48,099,612
Net realized gain (loss) on investments 294,928 (140,789)
Net unrealized appreciation (depreciation)
on investments (18,477,954) 11,272,993
Dividends on Preferred Stock (2,409,921) (9,541,005)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 3,915,115 49,690,811
--------------------------------------------------------------------------------
DIVIDENDS TO COMMON SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (17,937,625) (32,904,664)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
DIVIDENDS REINVESTED 2,290,267 --
TOTAL INCREASE (DECREASE) IN NET ASSETS (11,732,243) 16,786,147
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 565,724,805 548,938,658
END OF PERIOD 553,992,562 565,724,805
Undistributed investment income--net 10,816,594 6,453,159
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares issued for dividends reinvested 242,368 --
(A) RESTATED TO CONFORM TO CURRENT YEAR'S PRESENTATION.
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.
Six Months Ended
March 31, 2002 Year Ended September 30,
----------------------------------------------------------------
(Unaudited)(a) 2001 2000 1999 1998 1997
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 9.66 9.38 9.41 10.22 10.02 9.88
Investment Operations:
Investment income--net .42(b) .82 .71 .56 .59 .66
Net realized and unrealized
gain (loss) on investments (.31) .18 .02 (.80) .25 .16
Dividends on Preferred Stock
from net investment income (.04) (.16) (.13) -- -- --
Total from
Investment Operations .07 .84 .60 (.24) .84 .82
Distributions to
Common Shareholders:
Dividends from investment
income--net (.31) (.56) (.55) (.57) (.64) (.68)
Dividends from net realized
gain on investments -- -- (.02) -- -- --
Total Distributions to
Common Shareholders (.31) (.56) (.57) (.57) (.64) (.68)
Capital Stock transactions,
net effect of Preferred
Stock offerings -- -- (.06) -- -- --
Net asset value, end of period 9.42 9.66 9.38 9.41 10.22 10.02
Market Value, end of period 9.60 9.69 89_16 8 105_16 105_8
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 2.30(d) 20.22 14.76 (17.55) 3.35 13.77
Six Months Ended
March 31, 2002 Year Ended September 30,
-----------------------------------------------------------------
(Unaudited)(a) 2001 2000 1999 1998 1997
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA (%):
Ratio of expenses to
average net assets
applicable to Common Stock 1.38(e,f,g) 1.39(f,g) 1.25(f,g) .84 .85 .85
Ratio of net investment income
to average net assets
applicable to Common Stock 8.86(e,f,g) 8.49(f,g) 7.91(f,g) 5.63 5.78 6.64
Portfolio Turnover Rate 15.28(d) 10.07 19.03 27.05 20.95 16.66
Assets Coverage of
Preferred Stock,
end of period 294 299 295 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, net of
Preferred Stock,
end of period ($ x 1,000) 553,993 565,725 548,939 550,755 595,693 577,209
Preferred Stock outstanding,
end of period ($ x 1,000) 285,000 285,000 285,000 -- -- --
(A) AS REQUIRED, EFFECTIVE OCTOBER 1, 2001, THE FUND HAS ADOPTED THE PROVISIONS
OF THE AICPA AUDIT AND ACCOUNTING GUIDE FOR INVESTMENT COMPANIES AND BEGAN
AMORTIZING DISCOUNT OR PREMIUM ON A SCIENTIFIC BASIS FOR DEBT SECURITIES ON
A DAILY BASIS. THE EFFECT OF THIS CHANGE FOR THE PERIOD ENDED MARCH 31,
2002 WAS TO INCREASE NET INVESTMENT INCOME PER SHARE AND DECREASE NET
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS PER SHARE BY LESS THAN
$.01 AND INCREASE THE RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS
FROM 8.82% TO 8.86%. PER SHARE DATA AND RATIOS/SUPPLEMENTAL DATA FOR
PERIODS PRIOR TO OCTOBER 1, 2001 HAVE NOT BEEN RESTATED TO REFLECT THIS
CHANGE IN PRESENTATION.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) CALCULATED BASED ON MARKET VALUE.
(D) NOT ANNUALIZED.
(E) ANNUALIZED.
(F) DOES NOT REFLECT THE EFFECT OF DIVIDENDS TO PREFERRED STOCK SHAREHOLDERS.
(G) THE RATIO OF EXPENSES TO TOTAL AVERAGE NET ASSETS AND THE RATIO OF NET
INVESTMENT INCOME TO TOTAL AVERAGE NET ASSETS WERE .91% AND 5.85%,
RESPECTIVELY, FOR THE SIX MONTHS ENDED MARCH 31, 2002, .92% AND 5.65%,
RESPECTIVELY, FOR THE YEAR ENDED SEPTEMBER 30, 2001 AND .92% AND 5.79%,
RESPECTIVELY, FOR THE YEAR ENDED SEPTEMBER 30, 2000.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Strategic Municipals, 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 consistent
with the preservation of capital. The Dreyfus Corporation (the "Manager") serves
as the fund's investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation.
The fund' s Common Stock trades on the New York Stock Exchange under the ticker
symbol LEO.
The fund has outstanding 2,280 shares of each of Series M, Series T, Series W,
Series TH and Series F, for a total of 11,400 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 dividends 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 will vote as a separate class on
certain other matters, as required by law. The fund has designated Robin A.
Pringle 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 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 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 amortization of premiums and 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.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(C) DIVIDENDS TO SHAREHOLDERS OF COMMON STOCK ("COMMON SHAREHOLDERS(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.
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 the 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 asset value per share on
the record date, The Bank of New York 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.
On March 14, 2002, the Board of Directors declared a cash dividend of $.060 per
share from investment income-net, payable on April 25, 2002 to Common
Shareholders of record as of the close of business on April 11, 2002.
(D) DIVIDENDS TO SHAREHOLDERS OF APS: For APS, dividends are currently reset
every 7 days for Series M, Series T and Series Th. The dividend rate for Series
W will be in effect until December 5, 2002. The dividend rate for Series F will
be in effect until February 7, 2003. The dividend rate in effect at March 31,
2002 were as follows: Series M-1.35%, Series T-1.45%, Series W-2.30%, Series
TH-1.45% and Series F-1.90%.
(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 Code and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $9,837,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 2001. This
amount is calculated based on federal income tax regulations which may differ
from financial reporting in accordance with accounting principles generally
accepted in the United States. If not applied, the carryover expires in fiscal
2009.
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. During the period ended March 31, 2002, the
fund did not borrow under the line of credit.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .75 of 1% of the value of the
fund' s average weekly net assets and is payable monthly. The Agreement provides
for an expense reimbursement from the Manager should the fund's aggregate
expenses, exclusive of taxes, interest on borrowings, brokerage and
extraordinary expenses, in any full fiscal year exceed the lesser of (1) the
expense limitation of any state having jurisdiction over the fund or (2) 2% of
the first $10 million, 11_2% of the next $20 million and 1% of the The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
excess over $30 million of the average value of the fund's net assets. During
the period ended March 31, 2002, there was no expense reimbursement pursuant to
the Agreement.
(B) The fund compensates Boston Safe Deposit and Trust Company, an affiliate of
the Manager, under a custody agreement for providing custodial services to the
fund. During the period ended March 31, 2002, $69,270 was charged by Boston Safe
Deposit and Trust Company pursuant to the custody agreement.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $4,500 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 March 31, 2002, amounted to
$139,497,892 and $125,218,281, respectively.
At March 31, 2002, accumulated net unrealized depreciation on investments was
$1,036,941, consisting of $29,259,177 gross unrealized appreciation and
$30,296,118 gross unrealized depreciation.
At March 31, 2002, 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).
NOTE 5--Change in Accounting Principle:
(A) As required, effective October 1, 2001, the fund has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
amortizing discount or premium on a scientific basis for debt securities on a
daily basis. Prior to October 1, 2001, the fund amortized premiums on debt on a
scientific basis but recognized market discount upon disposition. The cumulative
effect of this
accounting change had no impact on total net assets of the fund, but resulted in
a $202,919 increase in accumulated undistributed investment income-net and a
corresponding $202,919 decrease in accumulated net unrealized appreciation
(depreciation), based on securities held by the fund on September 30, 2001
The effect of this change for the period ended March 31, 2002 was to increase
net investment income by $92,246, decrease net unrealized appreciation
(depreciation) by $35,638 and decrease net realized gains (losses) by $56,608.
The statement of changes in net assets and financial highlights for the prior
periods, have not been restated to reflect this change in presentation.
(B) Effective October 1, 2000, the fund adopted the classification requirement
of EITF D-98, Classification and Measurement of Redeemable Securities. EITF D-98
requires that preferred stock for which its redemption is outside of the fund's
control should be presented outside of net assets in the statement of assets and
liabilities. The redemption of the fund's preferred stock is outside of the
control of the fund because of provisions in the fund's Articles Supplementary
Creating Five Series of Auction Preferred Stock relating to compliance with
rating agency guidelines. In adopting EITF D-98, the fund's net assets as of
October 1, 2000 in the statement of changes in net assets is restated by
excluding preferred stock valued at $285,000,000 at that date. The adoption also
resulted in dividends on preferred stock being reclassified from distributions
on the statement of changes in net assets to a separate line item within the
statement of operations. This resulted in a decrease of $2,409,921 and
$9,541,005 to net assets from operations for the periods ended March 31, 2002
and September 30, 2001, respectively. As part of the adoption, per share
distributions of dividends on preferred stock was reclassified from
distributions to amounts from investment operations for each period presented in
the financial highlights.
The Fund
NOTES
NOTES
OFFICERS AND DIRECTORS
Dreyfus Strategic Municipals, 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
Mark N. Jacobs
Executive Vice President
Paul Disdier
Secretary
John B. Hammalian
Assistant Secretary
Steven F. Newman
Treasurer
James Windels
Assistant Treasurers
Gregory S. Gruber
Kenneth J. Sandgren
PORTFOLIO MANAGERS:
Joseph P. Darcy
A. Paul Disdier
Douglas J. Gaylor
Joseph A. Irace
PORTFOLIO MANAGERS (CONTINUED)
Colleen A. Meehan
W. Michael Petty
Scott Sprauer
James Welch
Monica S. Wieboldt
INVESTMENT ADVISER
The Dreyfus Corporation
CUSTODIAN
Boston Safe Deposit
and Trust Company
COUNSEL
Stroock & Stroock & Lavan LLP
TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND REGISTRAR
The Bank of New York (Common Stock)
Bankers Trust (Auction Preferred Stock)
AUCTION AGENT
Bankers Trust (Auction Preferred Stock)
STOCK EXCHANGE LISTING
NYSE Symbol: LEO
INITIAL SEC EFFECTIVE DATE
9/23/87
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 BOND FUNDS"
EVERY MONDAY; NEW YORK TIMES, BUSINESS SECTION UNDER THE HEADING "CLOSED-END
BOND FUNDS--NATIONAL MUNICIPAL BOND FUNDS" EVERY SUNDAY.
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 Municipals, 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 Disbursing Agent and Registrar
(Common Stock)
The Bank of New York
101 Barclay Street
New York, NY 10286
(c) 2002 Dreyfus Service Corporation 853SA0302