PRESIDENT'S LETTER
Dear Shareholder:
As your Fund ended its annual reporting period on April 30, 1994, its net
asset value was $17.46 per share. Income dividends of approximately $1.00 per
share were paid during this period, representing an annualized distribution
rate per share of 5.54%, based on the April 30, 1994 net asset value per
share, adjusted for capital gain distributions.* In addition, we are pleased
to report that all dividends paid from net investment income during this
period were exempt from Federal income tax, although certain shareholders may
be subject to the Federal Alternative Minimum Tax on some portfolio income.
As the reporting period began, the market for fixed-income securities was
very strong as the economy remained weak and inflation worries were virtually
nonexistent. By the fourth quarter of 1993, however, signs of solid economic
growth appeared and prices for fixed-income securities weakened.
The bond market weakness was a direct result of the fear of rising
inflation as rapid economic growth was recorded in the fourth quarter of 1993
and the first quarter of 1994. The impressive increase in Gross Domestic
Product in the first quarter of 1994 came despite extremely bad weather and
the earthquake in southern California. It had been anticipated that the bad
weather throughout much of the nation and the earthquake's impact on a major
economic center would have a significantly negative effect on overall U.S.
economic growth. However, economic growth continued quite strong.
With this continued economic improvement, fears of rising inflation
intensified. It appeared to market participants that the economy, over the
past year, had moved from recession to rapid expansion. Supporting this view
were increases in several key economic indicators such as capacity
utilization, retail sales, consumer confidence, commodity prices and new
orders for durable goods, just to name a few.
Reaction by the Federal Reserve Board to this rapid economic growth and
its perceived threat to price stability was swift, with two quarter-point
increases in the Federal Funds rate in the first quarter of 1994. The bond
market's negative reaction to these increases was dramatic, resulting in
substantial price declines by the end of this reporting period. The market
value of the bonds in the Fund's portfolio was not immune from the general
drop in bond prices, although the effect on the portfolio was mitigated by
the defensive posture we have followed since January _ discussed in more
detail later in this letter.
There are many economists who believe that the economy will return to
anemic performance in the second half of 1994, thereby relieving inflationary
pressures; however, the Fed will again raise rates if economic growth
continues strong and threatens inflation in the second half of 1994. It is
widely understood that Federal Reserve officials are intent on not giving up
gains made against inflation over the past several years. Near term, this
policy will continue to create an uncertain and volatile market. Longer term,
however, this should bode well for the value of long-term securities as
inflationary pressures subside.
In the coming year, we anticipate greater market volatility and continued
threats to portfolio values as inflationary pressures rise with economic
growth. Our strategy in this environment has become more defensive than
during 1993. We have shortened the average maturity of the Fund and increased
the short-term holdings to reflect this more cautious outlook on long-term
rates. Securities with shorter maturities tend to be less volatile in a
rising rate environment; however, they usually provide less income than do
longer-maturity securities. This strategy should help to temper the Fund's
vulnerability to dramatic price swings which was experienced occasionally in
the first quarter of 1994.
The municipal market is in a strong position as 1994 unfolds due to the
expectation of a substantially reduced supply of municipal securities this
year just as higher tax rates are being felt. In addition, we believe that
the Federal Reserve's vigilance in fighting inflation will benefit
longer-term fixed-income instruments in the coming year.
We have included a current Statement of Investments and recent financial
statements for your review. We greatly appreciate your investment in the Fund
and look forward to serving your investment needs in the future.
Very truly yours,
(signature logo)
Richard J. Moynihan
President
May 17, 1994
New York, N.Y.
* Income is subject to State and local taxes. Capital gains, if any,
generally are subject to Federal, State and local taxes.
PERFORMANCE
4
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS INSURED
Municipal Bond Fund , INC.
AND THE lehman brothers municipal bond index
Exhibit A
$22,048
Lehman Brothers
Municipal Bond Index*
$19,750
Dreyfus Insured
Municipal Bond Fund
In Dollars
*Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (6/25/85)
APRIL 30, 1994 APRIL 30, 1994 TO APRIL 30, 1994
-------------- ---------------- ------------------------
(0.74)% 7.32% 8.00%
Past performance is not predictive of future performance.
The above illustration compares a $10,000 investment made in the Dreyfus
Insured Municipal Bond Fund on 6/25/85 (Inception Date) to a $10,000
investment made in the Lehman Brothers Municipal Bond Index on that date. For
comparative purposes the value of the Index on 6/30/85 is used as the
beginning value on 6/25/85. All dividends and capital gain distributions are
reinvested.
The Fund invests primarily in municipal securities that are insured as to the
timely payment of principal and interest by recognized insurers of municipal
securities, and its performance takes into account fees and expenses. Unlike
the Fund, the Lehman Brothers Municipal Bond Index is an unmanaged total
return performance benchmark for the long-term, investment-grade tax exempt
bond market, calculated by using municipal bonds selected to be
representative of the market. The Index does not take into account charges,
fees and other expenses. Further information relating to Fund performance,
including expense reimbursements, if applicable, is contained in the
Condensed Financial Information section of the Prospectus and elsewhere in
this report.
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS
APRIL 30,1994
PRINCIPAL
MUNICIPAL BONDS--93.1% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
ALABAMA--4.3%
Birmingham Airport Authority, Airport Revenue
7.25%, 7/1/2020 (Insured; AMBAC)........................................ $ 1,250,000 $ 1,331,963
Houston County Healthcare Authority, HR, Refunding (Alabama Medical Center
Project)
5.50%, 10/1/2013 (Insured; MBIA)........................................ 5,000,000 4,586,500
Montgomery BMC Special Care Facilities Financing Authority, Revenue
(Baptist Medical Center) 5.75%, 1/1/2022 (Insured; FGIC)................ 5,000,000 4,574,450
CALIFORNIA--11.5%
Anaheim Public Financing Authority, Tax Allocation Revenue
9.73%, 12/28/2018 (Insured; MBIA) (a)................................... 5,000,000 5,156,250
California Housing Finance Agency, Revenue 5.60%, 8/1/2024 (Insured; MBIA).. 1,990,000 1,754,006
Calleguas Municipal Water District, COP (System Improvement Project)
6.625%, 7/1/2021 (Insured; AMBAC) (Prerefunded 7/1/2001) (b)............ 2,750,000 3,014,687
East Bay Municipal Utility District, Wastewater Treatment System Revenue
7.97%, 6/1/2013 (Insured; AMBAC) (a).................................... 8,450,000 7,171,938
Fairfield Public Financing Authority, Revenue (Fairfield Redevelopment
Projects)
5.25%, 8/1/2013 (Insured; Capital Guaranty)............................. 3,500,000 3,118,010
Los Angeles Community Redevelopment Agency, Refunding, Tax Allocation (Bunker
Hill)
5.60%, 12/1/2028 (Insured; FSA)......................................... 4,000,000 3,617,640
San Diego Sewer Revenue, Custodial Receipts 5.25%, 5/15/2020 (Insured; AMBAC) 1,685,000 1,461,855
Santa Ana, COP, Refunding (Parking Facilities Project)
6.125%, 6/1/2016 (Insured; AMBAC)....................................... 3,250,000 3,224,520
DELAWARE--.4%
Delaware Economic Development Authority, Gas Facilities Revenue
(Delmarva Power & Light) 7.30%, 7/1/2021 (Insured; FGIC)................ 1,000,000 1,087,230
DISTRICT OF COLUMBIA--2.4%
District of Columbia, HR, Refunding & Improvement (Children's Hospital)
6.25%, 7/15/2019 (Insured; FGIC)........................................ 6,000,000 5,961,600
FLORIDA--5.4%
Dade County, Aviation Revenue 6.60%, 10/1/2022 (Insured; MBIA).............. 3,500,000 3,606,050
Jacksonville Health Facilities Authority, HR:
(Memorial Regional Rehabilitation Center Project) 6.625%, 5/1/2022 (Insured; MBIA) 3,500,000 3,593,905
(New Children's Hospital at Baptist) 7%, 6/1/2021 (Insured; MBIA)....... 3,750,000 4,055,963
Lee County, Solid Waste System Revenue 7%, 10/1/2011 (Insured; MBIA)........ 2,000,000 2,171,660
GEORGIA--.8%
South Georgia Hospital Authority, HR 7.80%, 5/1/2016 (Insured; FGIC)........ 1,970,000 2,018,088
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED)
APRIL 30,1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
ILLINOIS--9.4%
Carbondale, HR, Refunding (Southern Illinois Hospital Services)
6.875%, 3/1/2015 (Insured; MBIA)........................................ $ 1,000,000 $ 1,021,880
Chicago O'Hare International Airport, Special Facility Revenue (International
Terminal):
7.625%, 1/1/2010 (Insured; MBIA)........................................ 3,000,000 3,344,580
6.50%, 1/1/2018 (Insured; FGIC)......................................... 1,750,000 1,762,950
Illinois Health Facilities Authority, Revenue, Refunding:
(Carle Foundation) 6.75%, 1/1/2010 (Insured; FGIC)...................... 5,650,000 5,896,679
(University of Chicago Hospitals Project) 8.52%, 8/15/2014 (Insured; MBIA) (a) 5,500,000 4,750,625
Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue
(McCormick Place Expansion Project) 6.50%, 6/15/2027 (Insured; FGIC).... 6,375,000 6,424,534
INDIANA--1.7%
Marion County Hospital Authority, Hospital Facilities Revenue (Community
Hospitals)
9%, 5/1/2008 (Insured; MBIA)............................................ 1,400,000 1,496,376
Rockport, PCR (AEP Generating Co. Project) 9.375%, 9/1/2014 (Insured; FGIC). 2,400,000 2,610,168
LOUISIANA-- 2.8%
Louisiana Public Facilities Authority, HR (Our Lady of the Lake Regional
Medical Center) 8.687%, 12/3/2021 (Insured; FSA) (a).................... 8,000,000 6,910,000
MASSACHUSETTS--1.9%
Massachusetts Education Loan Authority, Education Loan Revenue:
7.60%, 1/1/2003 (Insured; MBIA)......................................... 915,000 960,293
7.65%, 1/1/2004 (Insured; MBIA)......................................... 1,060,000 1,111,081
Massachusetts Health & Educational Facilities Authority, Revenue
(New England Medical Center Hospitals) 6.625%, 7/1/2025 (Insured; FGIC). 2,500,000 2,569,500
MICHIGAN--1.9%
Michigan Housing Development Authority, Limited Obligation Revenue
(Greenwood Villa Project) 6.50%, 9/15/2007 (Insured; FSA)............... 1,500,000 1,531,290
Western Michigan University, General Revenue 6.125%, 11/15/2022 (Insured; FGIC) 3,275,000 3,224,958
MONTANA--1.0%
Forsyth, PCR, Refunding (Puget Sound Power & Light Co.)
7.25%, 8/1/2021 (Insured; AMBAC)........................................ 2,250,000 2,443,882
NEVADA--3.6%
Reno, HR (Saint Mary's Hospital) 7.75%, 7/1/2015 (Insured; BIGI)
(Prerefunded 11/1/2000) (b)............................................. 1,505,000 1,714,556
Washoe County:
Gas Facilities Revenue (Sierra Pacific Power Co. Project)
6.70%, 11/1/2032 (Insured; MBIA)...................................... 2,000,000 2,042,460
Water Facilities Revenue (Sierra Pacific Power Co. Project)
6.65%, 6/1/2017 (Insured; MBIA)....................................... 5,000,000 5,128,300
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED)
APRIL 30,1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW HAMPSHIRE--2.3%
New Hampshire Higher Educational & Health Facilities Authority, Revenue
(University System of New Hampshire) 5.75%, 7/1/2024 (Insured; MBIA).... $ 3,800,000 $ 3,494,974
New Hampshire Industrial Development Authority, PCR (Connecticut Light
Project)
7.375%, 12/1/2019 (Insured; AMBAC)...................................... 2,000,000 2,175,440
NEW JERSEY--2.2%
Mercer County Improvement Authority, Solid Waste Revenue, Refunding
6.70%, 4/1/2013 (Insured; MBIA)......................................... 5,000,000 5,285,350
New Jersey Housing & Mortgage Finance Agency, Home Mortgage Revenue
9.125%, 4/1/2015 (Insured; MBIA)........................................ 20,000 20,915
NORTH CAROLINA--2.6%
North Carolina Municipal Power Agency, Revenue, Refunding (No. 1 Catawba
Electric):
6.20%, 1/1/2018 (Insured; FSA).......................................... 5,000,000 4,968,750
5.75%, 1/1/2020 (Insured; MBIA)......................................... 1,600,000 1,498,192
NORTH DAKOTA--1.5%
Mercer County, PCR, Refunding (Montana-Dakota Utilities Co. Project)
6.65%, 6/1/2022 (Insured; FGIC)......................................... 3,500,000 3,598,070
OHIO--2.1%
Cleveland, Airport System Revenue 7.40%, 1/1/2020 (Insured; MBIA)........... 1,000,000 1,095,320
Lucas County, HR (Saint Vincent Medical Center) 6.625%, 8/15/2022 (Insured;
MBIA)
(Prerefunded 8/15/2002) (b)............................................. 3,945,000 4,200,478
PENNSYLVANIA--10.4%
Beaver County Industrial Development Authority, PCR, Refunding
(Ohio Edison Co./Mansfield) 7%, 6/1/2021 (Insured; FGIC)................ 3,000,000 3,174,660
Bucks County Industrial Development Authority, Revenue (Grand View Hospital
Project)
7%, 7/1/2021 (Insured; AMBAC) (Prerefunded 7/1/2001) (b)................ 2,000,000 2,230,500
Coatesville Area School District, 6.70%, 3/1/2001 (Insured; AMBAC).......... 5,200,000 5,618,756
Mount Lebanon Hospital Authority, Revenue, Refunding (Saint Clair Memorial
Hospital)
9.125%, 7/1/2006 (Insured; FGIC) (Prerefunded 1/1/1996) (b)............. 1,500,000 1,634,910
Pennsylvania, COP 5.25%, 7/1/2010 (Insured; AMBAC).......................... 7,875,000 7,192,159
Pennsylvania Convention Center Authority, Revenue 6.70%, 9/1/2016 (Insured; FGIC) 1,925,000 2,062,214
Pennsylvania Higher Educational Facilities Authority, College & University
Revenues
Refunding (Duquesne University) 7%, 4/1/2010 (Insured; MBIA)............ 2,000,000 2,130,420
Philadelphia Municipal Authority, Justice Lease Revenue 7.125%, 11/15/2018
(Insured; FGIC) (Prerefunded 11/15/2001) (b)............................ 1,500,000 1,690,575
RHODE ISLAND--.1%
Rhode Island Housing & Mortgage Finance Corp., SFMR
9.30%, 7/1/2004 (Insured; FGIC)......................................... 270,000 278,632
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED)
APRIL 30,1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ --------------
SOUTH CAROLINA--.4%
Florence County, COP, Refunding (Law Enforcement Center Project)
6%, 3/1/2008 (Insured; AMBAC)........................................... $ 1,000,000 $ 1,012,620
TEXAS--9.8%
Austin, Utility System Revenue 6.25%, 11/15/2019 (Insured; MBIA)............ 5,150,000 5,136,713
Brazos River Authority, PCR, Refunding (Texas Utilities Electric Co. Project)
6.10%, 4/1/2028 (Insured; FSA).......................................... 5,000,000 4,806,300
Brownsville Housing Finance Corp., SFMR (Mortgage-Multiple Originaters &
Services)
9.625%, 12/1/2011 (Insured; FGIC)....................................... 915,000 958,362
Gregg County Health Facilities Development Corp., HR, Refunding
(Good Shepard Medical Center Project) 5.50%, 10/1/2015 (Insured; AMBAC). 5,000,000 4,554,750
Harris County, Health Facilities Development Corp., HR
(Memorial Hospital System Project) 6.50%, 6/1/2019 (Insured; AMBAC)..... 4,500,000 4,535,145
Houston, Water & Sewer System Revenue, Refunding
6.375%, 12/1/2017 (Insured; AMBAC)...................................... 4,235,000 4,248,213
UTAH--1.7%
Utah Board of Regents, Student Loan Revenue 7.45%, 11/1/2008 (Insured; AMBAC) 4,000,000 4,131,960
WASHINGTON--9.8%
Seattle Municipality, Metropolitan Seattle Sewer Revenue
6.25%, 1/1/2020 (Insured; MBIA)......................................... 3,730,000 3,705,979
University of Washington, University Revenues (Housing & Dining)
7%, 12/1/2021 (Insured; MBIA)........................................... 3,000,000 3,195,840
Washington Health Care Facilities Authority, Revenue:
(Multicare Medical Center of Tacoma) 5.75%, 8/15/2022 (Insured; FGIC)... 1,965,000 1,796,383
(Sisters of Saint Joseph Peace Health) 7.75%, 5/1/2015 (Insured; MBIA).. 5,000,000 5,508,550
Washington Public Power Supply System, Revenue, Refunding (Nuclear Project
No. 3)
6%, 7/1/2018 (Insured; BIGI)............................................ 6,500,000 6,212,375
Yakima-Tieton Irrigation District Revenue, Refunding 6.20%, 6/1/2019 (Insured; FSA) 4,000,000 3,924,880
WEST VIRGINIA--1.9%
Marshall County, PCR, Refunding (Ohio Power Project) 5.90%, 4/1/2022 (Insured; MBIA) 5,000,000 4,725,850
WISCONSIN--1.2%
Wisconsin Health & Educational Facilities Authority, Revenue (Columbia
Hospital, Inc.)
6.50%, 11/15/2010 (Insured; MBIA)....................................... 3,000,000 3,083,550
--------------
TOTAL MUNICIPAL BONDS (cost $229,381,128)................................... $230,338,212
==============
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED)
APRIL 30,1994
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS- 6.9% AMOUNT VALUE
-------------- --------------
CALIFORNIA--2.3%
California Health Facilities Financing Authority, Revenue (Scripps Memorial
Hospital)
VRDN 3.10% (Insured; MBIA)(c)........................................... $ 5,700,000 $ 5,700,000
NEW YORK--4.6%
New York City, VRDN 2.90%, (Insured; FGIC) (c).............................. 11,250,000 11,250,000
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $16,950,000)................... $ 16,950,000
==============
TOTAL INVESTMENTS--100.0%
(cost $246,331,128)..................................................... $247,288,212
==============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation HR Hospital Revenue
BIGI Bond Investors Guarantee Insurance MBIA Municipal Bond Insurance Association
COP Certificate of Participation PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Corporation SFMR Single Family Mortgage Revenue
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- - - --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
AAA Aaa AAA 93.1%
F1 P1 A1+ 6.9
--------
100.0%
=======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Residual interest security - the interest rate is subject to change
periodically.
(b) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the tax-exempt issue and to retire the bonds in full at the
earliest refunding date.
(c) Securities payable on demand. The interest rate, which is subject to
change is based upon bank prime rates or an index of market interest
rates.
(d) Fitch currently provides creditworthiness information for a limited
amount of investments.
(e) At April 30, 1994, 37.5% of the Fund's net assets are insured by
MBIA and 25.1% of the Fund's net assets are insured by FGIC.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1994
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $246,331,128)_see statement..................................... $247,288,212
Cash.................................................................... 1,186,524
Interest receivable .................................................... 4,951,287
Receivable for investment securities sold.............................. 4,024,690
Prepaid expenses ....................................................... 36,625
--------------
257,487,338
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 167,982
Payable for investment securities purchased ............................ 7,350,774
Payable for Common Stock redeemed ...................................... 396,634
Accrued expenses ....................................................... 59,157 7,974,547
---------- ----------
NET ASSETS ................................................................ $249,512,791
===========
REPRESENTED BY:
Paid-in capital......................................................... $249,628,187
Accumulated undistributed investment income_net......................... 37,525
Accumulated distributions in excess of net realized gain
on investments_Note 1(c).............................................. (1,110,005)
Accumulated net unrealized appreciation on investments_Note 3........... 957,084
--------------
NET ASSETS at value applicable to 14,293,264 shares outstanding
(300 million shares of $.01 par value Common Stock authorized).......... $249,512,791
===========
NET ASSET VALUE, offering and redemption price per share
($249,512,791 / 14,293,264 shares)...................................... $17.46
=========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1994
INVESTMENT INCOME:
<S> <C> <C>
INTEREST INCOME......................................................... $17,404,275
EXPENSES:
Management fee_Note 2(a).............................................. $ 1,689,476
Shareholder servicing costs_Note 2(b)................................. 753,955
Professional fees..................................................... 56,797
Registration fees..................................................... 32,121
Custodian fees........................................................ 28,481
Prospectus and shareholders' reports_Note 2(b)........................ 18,170
Directors' fees and expenses_Note 2(c)................................ 17,203
Miscellaneous......................................................... 20,730
-------------
TOTAL EXPENSES.................................................... 2,616,933
-------------
INVESTMENT INCOME-NET............................................. 14,787,342
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments_Note 3................................. $ 3,638,963
Net unrealized (depreciation) on investments............................ (19,025,827)
-------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (15,386,864)
-------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (599,522)
===========
See notes to financial statements.
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED APRIL 30,
--------------------------------
1993 1994
-------------- --------------
OPERATIONS:
Investment income-net................................................... $ 14,973,752 $14,787,342
Net realized gain on investments........................................ 7,788,065 3,638,963
Net unrealized appreciation (depreciation) on investments for the year.. 10,453,904 (19,025,827)
-------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... 33,215,721 (599,522)
-------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (14,973,752) (14,749,817)
Net realized gain on investments........................................ (3,038,540) (9,290,455)
Excess net realized gain on investments................................. _ (1,110,005)
-------------- -------------
TOTAL DIVIDENDS....................................................... (18,012,292) (25,150,277)
-------------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 120,110,436 149,233,338
Dividends reinvested.................................................... 12,467,239 17,708,343
Cost of shares redeemed................................................. (111,413,928) (168,658,243)
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..... 21,163,747 (1,716,562)
-------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 36,367,176 (27,466,361)
NET ASSETS:
Beginning of year....................................................... 240,611,976 276,979,152
-------------- --------------
End of year (including undistributed investment income-net; $37,525 in 1994) $276,979,152 $249,512,791
============ ===========
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 6,423,737 7,960,391
Shares issued for dividends reinvested.................................. 667,601 930,737
Shares redeemed......................................................... (5,933,914) (9,001,544)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 1,157,424 (110,416)
============ ===========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from information provided in the Fund's financial
statements.
YEAR ENDED APRIL 30,
----------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
------ ------ ----- ----- ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year...................... $17.39 $17.10 $17.77 $18.16 $19.23
------ ------ ----- ----- ------
INVESTMENT OPERATIONS:
Investment income--net.................................. 1.16 1.14 1.10 1.06 1.00
Net realized and unrealized gain (loss) on investments.. (.28) .67 .39 1.28 (1.06)
------ ------ ----- ----- ------
TOTAL FROM INVESTMENT OPERATIONS...................... .88 1.81 1.49 2.34 (.06)
------ ------ ----- ----- ------
DISTRIBUTIONS:
Dividends from investment income_net.................... (1.17) (1.14) (1.10) (1.06) (1.00)
Dividends from net realized gain on investments......... _ _ _ (.21) (.63)
Dividends from excess net realized gain on investments.. _ _ _ _ (.08)
------ ------ ----- ----- ------
TOTAL DISTRIBUTIONS................................... (1.17) (1.14) (1.10) (1.27) (1.71)
------ ------ ----- ----- ------
Net asset value, end of year............................ $17.10 $17.77 $18.16 $19.23 $17.46
===== ===== ====== ===== ========
TOTAL INVESTMENT RETURN..................................... 5.10% 10.87% 8.56% 13.35% (.74%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. .99% .96% .96% .94% .93%
Ratio of net investment income to average net assets.... 6.63% 6.50% 6.07% 5.69% 5.25%
Portfolio Turnover Rate................................. 67.09% 61.87% 51.18% 80.72% 34.92%
Net Assets, end of year (000's Omitted)................. $190,614 $219,299 $240,612 $276,979 $249,513
See notes to financial statements.
</TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Dreyfus Service
Corporation ("Distributor") acts as the distributor of the Fund's shares,
which are sold to the public without a sales load. The Distributor is a
wholly-owned subsidiary of The Dreyfus Corporation ("Manager").
(A) PORTFOLIO VALUATION: The Fund's investments are valued each business
day by an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices in the judgment of the
Service are readily available and are representative of the bid side of the
market 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.
(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, when appropriate,
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: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain 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. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
Dividends in excess of net realized gains on investment for financial
statement purposes result primarily from losses from securities transactions
during the year ended April 30, 1994 which are treated for Federal income tax
purposes as arising in Fiscal 1995.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the provisions available to certain investment
companies, as defined in applicable sections of the Internal Revenue Code,
and to make distributions of income and net realized capital gain sufficient
to relieve it from all, or substantially all, Federal income taxes.
NOTE 2--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 .60 of 1% of the average
daily value of the Fund's 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, exceed 1 1/2% of the average value of the Fund's net
assets for any full fiscal year. There was no expense reimbursement for the
year ended April 30, 1994.
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(B) The Fund has adopted a Service Plan (the "Plan") pursuant to which
the Fund pays the Distributor, at an annual rate of .20 of 1% of the value of
the Fund's average daily net assets, for costs and expenses in connection
with advertising, marketing and distributing the Fund's shares and for
servicing shareholder accounts. The Distributor may make payments to one or
more Service Agents (a securities dealer, financial institution, or other
industry professional) based on the value of the Fund's shares owned by
clients of the Service Agent. The Plan also separately provides for the Fund
to bear the costs of preparing, printing and distributing certain of the
Fund's prospectuses and statements of additional information and costs
associated with implementing and operating the Plan, not to exceed the
greater of $100,000 or .005 of 1% of the Fund's average daily net assets for
any full fiscal year. During the year ended April 30, 1994, the Fund was
charged $570,491 pursuant to the Plan, substantially all of which was
retained by the Distributor.
(C) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each director
who is not an "affiliated person" receives an annual fee of $2,500 and an
attendance fee of $250 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and Plan
of Merger (the "Merger Agreement") providing for the merger of the Manager
with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number
of contingencies, including receipt of certain regulatory approvals and
approvals of the stockholders of the Manager and of Mellon. The merger is
expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board and
shareholders before completion of the merger. Shareholder approval will be
solicited by a proxy statement.
NOTE 3--SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $157,593,445 and
$175,948,547, respectively, for the year ended April 30, 1994, and consisted
entirely of municipal bonds and short-term municipal investments.
At April 30, 1994, accumulated net unrealized appreciation on investments
was $957,084, consisting of $7,014,423 gross unrealized appreciation and
$6,057,339 gross unrealized depreciation.
At April 30, 1994, 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).
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Insured Municipal Bond Fund, Inc., including the statement of
investments, as of April 30, 1994, 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 generally accepted auditing
standards. 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. Our procedures included confirmation of
securities owned as of April 30, 1994 by correspondence with the custodian
and brokers. 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 Insured Municipal Bond Fund, Inc. at April 30, 1994, 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 generally
accepted accounting principles.
(Ernst & Young Signature Logo)
New York, New York
June 1, 1994
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended April 30, 1994:
_ All the dividends paid from investment income-net are
"exempt-interest dividends" (not generally subject to regular Federal
income tax).
_ The portion of the $.7087 per share paid by the Fund on
December 6, 1993 representing a long-term capital gain distribution is
$.5223 per share.
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1994 calendar year
on Form 1099-DIV which will be mailed by January 31, 1995.
4
Insured
Municipal
Bond Fund, Inc.
Annual
Report
April 30, 1994
1
DREYFUS INSURED MUNICIPAL
BOND FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 306AR944
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS INSURED MUNICIPAL BOND FUND, INC. AND
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
___________________________________________________
| | | |
| | | |
| PERIOD | LEHMAN BROTHERS | DREYFUS |
| | MUNICIPAL | INSURED MUNICIPAL |
| | BOND INDEX * | BOND FUND |
|-----------|-----------------|--------------------|
| 6/25/85 | 10,000 | 10,000 |
| 4/30/86 | 11,732 | 11,688 |
| 4/30/87 | 12,357 | 12,059 |
| 4/30/88 | 13,438 | 12,554 |
| 4/30/89 | 14,637 | 13,875 |
| 4/30/90 | 15,692 | 14,584 |
| 4/30/91 | 17,495 | 16,169 |
| 4/30/92 | 19,158 | 17,553 |
| 4/30/93 | 21,582 | 19,896 |
| 4/30/94 | 22,048 | 19,750 |
|--------------------------------------------------|
