LETTER TO SHAREHOLDERS
Dear Shareholder:
As your Fund ended its semi-annual reporting period on October 31, 1994,
its net asset value was $16.52 per share. Income dividends of approximately
$.48 per share were paid during this period, representing an annualized
distribution rate per share of 5.76%, based on the October 31, 1994 net asset
value per share. In addition, we are pleased to report that all dividends
paid from net investment income during this period were exempt from Federal
income taxes, although certain shareholders may be subject to the Federal
Alternative Minimum Tax on some portfolio income.*
The municipal market continued its decline over the reporting period as
the economy continued to grow and, with that, inflationary fears increased.
While some acceleration in the economy had been expected, the robust growth
experienced over the past several months was clearly a surprise to most
economists and market participants alike. It had been anticipated that the
higher interest rates engendered by the Federal Reserve Board's tighter
monetary policy, beginning in the first quarter of this year, would slow
economic expansion.
A wide array of economic indexes are showing growth at levels that have
proven to be accurate forecasters of upward inflationary trends in past
recoveries. As an example, consumer spending rebounded in August as retail
sales rose by almost a full percentage point. Additionally, job gains remain
strong, and jobless claims continue to go lower while capacity utilization
rates have risen rapidly and are now near the peak level of the last cycle.
Lastly, commodity prices continue on a volatile but upward path. Overall,
these data suggest that strong upward growth will continue through the fourth
quarter of this year and that has put substantial pressure on the Federal
Reserve to further tighten credit.
Our strategy in this environment is one of caution. We believe that
interest rates will peak over the next several months and that inflation will
continue to be subdued. We have raised our cash position to limit, somewhat,
our volatility and to be prepared to add to our long position at the lower
prices we anticipate by year end. 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,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 14, 1994
New York, N.Y.
* Income may be subject to State and local taxes. Capital gains, if
any, are generally subject to Federal, State and local taxes.
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS OCTOBER 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-97.5% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
ALABAMA-4.4%
Birmingham Airport Authority, Airport Revenue
7.25%, 7/1/2020 (Insured; AMBAC)........................................ $ 1,250,000 $ 1,283,750
Houston County Healthcare Authority, HR, Refunding (Alabama Medical Center Project)
5.50%, 10/1/2013 (Insured; MBIA)........................................ 5,000,000 4,313,600
Montgomery BMC Special Care Facilities Financing Authority, Revenue
(Baptist Medical Center) 5.75%, 1/1/2022 (Insured; FGIC)................ 5,000,000 4,303,500
CALIFORNIA-7.0%
Anaheim Public Financing Authority, Tax Allocation Revenue
9.22%, 12/28/2018 (Insured; MBIA) (a)................................... 5,000,000 4,700,000
Bay Area Government Association, Tax Allocation Revenue
California Redevelopment Agency 6.00%, 12/15/24 (Insured; CGIC)......... 250,000 226,550
California Housing Finance Agency, Revenue 5.60%, 8/1/2024 (Insured; MBIA).. 1,990,000 1,669,013
Calleguas Municipal Water District, COP (System Improvement Project)
6.625%, 7/1/2021 (Insured; AMBAC, Prerefunded 7/1/2001) (b)............. 2,750,000 2,952,373
Fairfield Public Financing Authority, Revenue (Fairfield Redevelopment Projects)
5.25%, 8/1/2013 (Insured; CGIC)......................................... 3,500,000 2,919,770
Los Angeles Community Redevelopment Agency, Refunding, Tax Allocation (Bunker Hill)
5.60%, 12/1/2028 (Insured; FSA)......................................... 4,000,000 3,343,280
CONNECTICUT-.8%
Connecticut State Health & Educational Facilities Authority, Revenue:
Capital Asset Issue 6.875%, 1/1/2010 (Insured; MBIA).................... 1,000,000 1,024,620
New Britain General Hospital 6%, 7/1/2024 (Insured; AMBAC).............. 550,000 499,301
South Central, Regional Water Authority, Water System Revenue
5.75%, 8/1/2012 (Insured; FGIC)......................................... 250,000 231,880
DELAWARE-.4%
Delaware Economic Development Authority, Gas Facilities Revenue
(Delmarva Power & Light) 7.30%, 7/1/2021 (Insured; FGIC)................ 1,000,000 1,028,250
DISTRICT OF COLUMBIA-2.5%
District of Columbia, HR, Refunding & Improvement (Children's Hospital)
6.25%, 7/15/2019 (Insured; FGIC)........................................ 6,000,000 5,579,880
FLORIDA-7.1%
Dade County, Aviation Revenue 6.60%, 10/1/2022 (Insured; MBIA).............. 3,500,000 3,451,420
Florida Division Bond Finance Department, General Services Revenues
(Department of Natural Resource-Preservation 2000) 5.80%, 7/1/2013 (Insured; FSA) 2,300,000 2,117,794
Florida Housing Finance Agency, Single Family Mortgage
6.65%, 7/1/2026 (Insured; MBIA)......................................... 1,000,000 967,870
Jacksonville Health Facilities Authority, HR:
(Memorial Regional Rehabilitation Center Project) 6.625%, 5/1/2022 (Insured; MBIA) 3,000,000 3,003,120
(New Children's Hospital at Baptist) 7%, 6/1/2021 (Insured; MBIA)....... 3,750,000 3,879,038
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
FLORIDA (CONTINUED)
Lee County:
Solid Waste System Revenue 7%, 10/1/2011 (Insured; MBIA)................ $ 2,000,000 $ 2,098,420
Tourist Development, Tax Revenue, Refunding 5.625%, 10/1/2011 (Insured; FGIC) 250,000 228,692
Osceola County, COP, School Board Revenue 5.75%, 6/1/2014 (Insured; AMBAC).. 250,000 226,178
ILLINOIS-9.6%
Carbondale, HR, Refunding (Southern Illinois Hospital Services)
6.875%, 3/1/2015 (Insured; MBIA)........................................ 1,000,000 1,000,790
Chicago O'Hare International Airport, Special Facility Revenue (International
Terminal):
7.625%, 1/1/2010 (Insured; MBIA)........................................ 3,000,000 3,191,550
6.50%, 1/1/2018 (Insured; FGIC)......................................... 1,750,000 1,661,660
Illinois Health Facilities Authority, Revenue, Refunding:
(Carle Foundation) 6.75%, 1/1/2010 (Insured; FGIC)...................... 5,650,000 5,737,914
(University of Chicago Hospitals Project) 7.73%, 8/15/2014 (Insured; MBIA) (a) 5,500,000 4,111,250
Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue
(McCormick Place Expansion Project) 6.50%, 6/15/2027 (Insured; FGIC).... 6,375,000 6,064,920
INDIANA-1.8%
Marion County Hospital Authority, Hospital Facilities Revenue (Community Hospitals)
9%, 5/1/2008 (Insured; MBIA)............................................ 1,400,000 1,457,470
Rockport, PCR (AEP Generating Co. Project) 9.375%, 9/1/2014 (Insured; FGIC). 2,400,000 2,538,576
LOUISIANA- 2.5%
Louisiana Public Facilities Authority, HR (Our Lady of the Lake Regional
Medical Center) 7.967%, 12/3/2021 (Insured; FSA) (a).................... 8,000,000 5,750,000
MASSACHUSETTS-2.0%
Massachusetts Education Loan Authority, Education Loan Revenue:
7.60%, 1/1/2003 (Insured; MBIA)......................................... 915,000 945,909
7.65%, 1/1/2004 (Insured; MBIA)......................................... 1,060,000 1,094,545
Massachusetts Health & Educational Facilities Authority, Revenue
(New England Medical Center Hospitals) 6.625%, 7/1/2025 (Insured; FGIC). 2,500,000 2,465,800
MICHIGAN-2.0%
Michigan Housing Development Authority, LOR (Greenwood Villa Project)
6.50%, 9/15/2007 (Insured; FSA)......................................... 1,500,000 1,495,965
Western Michigan University, General Revenue 6.125%, 11/15/2022 (Insured; FGIC) 3,275,000 3,011,100
MONTANA-1.0%
Forsyth, PCR, Refunding (Puget Sound Power & Light Co.)
7.25%, 8/1/2021 (Insured; AMBAC)........................................ 2,250,000 2,326,072
NEVADA-3.7%
Reno, HR (Saint Mary's Hospital)
7.75%, 7/1/2015 (Insured; BIGI, Prerefunded 11/1/2000) (b).............. 1,475,000 1,644,625
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEVADA (CONTINUED)
Washoe County:
Gas Facilities Revenue (Sierra Pacific Power Co. Project)
6.70%, 11/1/2032 (Insured; MBIA)...................................... $ 2,000,000 $ 1,920,560
Water Facilities Revenue (Sierra Pacific Power Co. Project)
6.65%, 6/1/2017 (Insured; MBIA)....................................... 5,000,000 4,871,500
NEW HAMPSHIRE-2.4%
New Hampshire Higher Educational & Health Facilities Authority, Revenue
(University System of New Hampshire) 5.75%, 7/1/2024 (Insured; MBIA).... 3,800,000 3,259,336
New Hampshire Industrial Development Authority, PCR (Connecticut Light Project)
7.375%, 12/1/2019 (Insured; AMBAC)...................................... 2,000,000 2,060,240
NEW JERSEY-9.2%
Mercer County Improvement Authority, Solid Waste Revenue, Refunding
6.70%, 4/1/2013 (Insured; MBIA)......................................... 5,000,000 5,051,700
New Jersey Economic Development Authority, PCR (Public Service Electric & Gas Co.)
6.40%, 5/1/2032 (Insured; MBIA)......................................... 12,600,000 11,919,096
New Jersey Educational Facilities Authority, Revenue, Refunding,
(New Jersey Institute of Technology) 6%, 7/1/2024 (Insured; MBIA)....... 770,000 705,459
New Jersey Health Care Facilities Financing Authority, Revenue
Refunding (Jersey Shore Medical Center) 6.25%, 7/1/2021 (Insured; AMBAC) 270,000 254,961
(Underwood Memorial Hospital) 5.70%, 7/1/2023 (Insured; AMBAC).......... 250,000 217,447
New Jersey Housing & Mortgage Finance Agency, Revenue:
Home Buyer:
6.20%, 10/1/2025 (Insured; MBIA)...................................... 2,250,000 2,060,258
6.375%, 10/1/2026 (Insured; MBIA)..................................... 270,000 249,839
Home Mortgage 9.125%, 4/1/2015 (Insured; MBIA).......................... 20,000 20,800
Salem County, Industrial Pollution Control Financing Authority, Revenue, Refunding
(Atlantic City Electric) 6.15%, 6/1/2029 (Insured; FSA)................. 250,000 228,757
NORTH CAROLINA-2.7%
North Carolina Municipal Power Agency, Revenue, Refunding (No. 1 Catawba Electric):
6.20%, 1/1/2018 (Insured; FSA).......................................... 5,000,000 4,668,450
5.75%, 1/1/2020 (Insured; MBIA)......................................... 1,600,000 1,388,336
NORTH DAKOTA-1.5%
Mercer County, PCR, Refunding (Montana-Dakota Utilities Co. Project)
6.65%, 6/1/2022 (Insured; FGIC)......................................... 3,500,000 3,426,185
OHIO-.5%
Cleveland, Airport System Revenue 7.40%, 1/1/2020 (Insured; MBIA)........... 1,000,000 1,049,030
PENNSYLVANIA-11.7%
Beaver County Industrial Development Authority, PCR, Refunding
(Ohio Edison Co./Mansfield) 7%, 6/1/2021 (Insured; FGIC)................ 3,000,000 3,064,920
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
PENNSYLVANIA (CONTINUED)
Bucks County Industrial Development Authority, Revenue (Grand View Hospital Project)
7%, 7/1/2021 (Insured; AMBAC, Prerefunded 7/1/2001) (b)................. $ 2,000,000 $ 2,181,460
Coatesville Area School District 6.70%, 3/1/2001 (Insured; AMBAC)........... 5,200,000 5,500,924
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 1,587,540
Pennsylvania, COP 5.25%, 7/1/2010 (Insured; AMBAC).......................... 7,875,000 6,783,682
Pennsylvania Convention Center Authority, Revenue 6.70%, 9/1/2016 (Insured; FGIC) 1,925,000 1,992,202
Pennsylvania Higher Educational Facilities Authority, College & University
Revenues,
Refunding (Duquesne University) 7%, 4/1/2010 (Insured; MBIA)............ 2,000,000 2,066,420
Philadelphia Municipal Authority, Justice Lease Revenue 7.125%, 11/15/2018
(Insured; FGIC, Prerefunded 11/15/2001) (b)............................. 1,500,000 1,651,845
Philidelphia School District 5.65%, 7/1/2006 (Insured; MBIA)................ 1,700,000 1,624,350
RHODE ISLAND-1.9%
Rhode Island Housing & Mortgage Finance Corp., SFMR
9.30%, 7/1/2004 (Insured; FGIC)......................................... 195,000 200,415
Rhode Island Port Authority & Economic Development Corp.,
Airport Revenue 6.625%, 7/1/2024 (Insured; FSA)......................... 4,250,000 4,041,198
SOUTH CAROLINA-.4%
Florence County, COP, Refunding (Law Enforcement Center Project)
6%, 3/1/2008 (Insured; AMBAC)........................................... 1,000,000 978,380
TEXAS-8.3%
Austin, Utility System Revenue 6.25%, 11/15/2019 (Insured; MBIA)............ 5,150,000 4,864,381
Brazos River Authority, PCR, Refunding (Texas Utilities Electric Co. Project)
6.10%, 4/1/2028 (Insured; FSA).......................................... 5,000,000 4,468,150
Brownsville Housing Finance Corp., SFMR (Mortgage-Multiple Originators & Services)
9.625%, 12/1/2011 (Insured; FGIC)....................................... 880,000 916,265
Gregg County Health Facilities Development Corp., HR, Refunding
(Good Shephard Medical Center Project) 5.50%, 10/1/2015 (Insured; AMBAC) 5,000,000 4,242,850
Harris County, Health Facilities Development Corp., HR
(Memorial Hospital System Project) 6.50%, 6/1/2019 (Insured; AMBAC)..... 4,500,000 4,323,915
UTAH-1.8%
Utah Board of Regents, Student Loan Revenue 7.45%, 11/1/2008 (Insured; AMBAC) 4,000,000 4,168,400
VIRGINIA-1.5%
Chesapeake Bay Bridge and Tunnel Commission, District Revenue, Refunding,
General Resolution 6.375%, 7/1/2022 (Insured; MBIA)..................... 3,500,000 3,382,820
WASHINGTON-9.5%
Seattle Municipality, Metropolitan Seattle Sewer Revenue
6.25%, 1/1/2020 (Insured; MBIA)......................................... 3,730,000 3,509,520
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
WASHINGTON (CONTINUED)
University of Washington, University Revenues (Housing & Dining)
7%, 12/1/2021 (Insured; MBIA)........................................... $ 3,000,000 $ 3,050,070
Washington Health Care Facilities Authority, Revenue
(Sisters of Saint Joseph Peace Health) 7.75%, 5/1/2015 (Insured; MBIA).. 5,000,000 5,403,700
Washington Public Power Supply System, Revenue, Refunding (Nuclear Project No. 3)
6%, 7/1/2018 (Insured; BIGI)............................................ 6,500,000 5,849,480
Yakima-Tieton Irrigation District Revenue, Refunding 6.20%, 6/1/2019 (Insured; FSA) 4,000,000 3,710,480
WISCONSIN-1.3%
Wisconsin Health & Educational Facilities Authority, Revenue (Columbia
Hospital Inc.)
6.50%, 11/15/2010 (Insured; MBIA)....................................... 3,000,000 2,938,560
--------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $230,358,142)................... $220,400,326
==============
SHORT-TERM MUNICIPAL INVESTMENTS-2.5%
FLORIDA:
Gulf Breeze, Local Government Loan Program, VRDN, 3.50%, (Insured; FGIC) (c) $ 2,565,000 $ 2,565,000
Jacksonville Health Facilities Authority, HR, VRDN (Baptist Medical Center
Project)
3.75% (Insured; MBIA) (c)............................................... 3,000,000 3,000,000
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $5,565,000).................... $ 5,565,000
==============
TOTAL INVESTMENTS (cost $235,923,142)-100.0%................................ $225,965,326
==============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation HR Hospital Revenue
BIGI Bond Investors Guaranty Insurance LOR Lease Obligation Revenue
CGIC Capital Guaranty Insurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificate of Participation PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Company SFMR Single Family Mortgage Revenue
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
FITCH (D) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
AAA Aaa AAA 97.5%
F1 P1 A1+ 2.5
------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater 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 municipal 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
number of investments.
(e) At October 31, 1994, 43.3% of the Fund's net assets are insured by
MBIA and 21.1% of the Fund's net assets are insured by FGIC.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1994 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $235,923,142)-see statement..................................... $225,965,326
Interest receivable..................................................... 5,037,681
Prepaid expenses........................................................ 25,650
--------------
231,028,657
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 157,489
Due to Custodian........................................................ 1,672,563
Payable for Common Stock redeemed....................................... 21,628
Accrued expenses and other liabilities.................................. 48,656 1,900,336
------------ --------------
NET ASSETS ................................................................ $229,128,321
==============
REPRESENTED BY:
Paid-in capital......................................................... $242,058,683
Accumulated net realized (loss) on investments.......................... (2,972,546)
Accumulated net unrealized (depreciation) on investments-Note 3......... (9,957,816)
--------------
NET ASSETS at value applicable to 13,869,457 outstanding shares of
Common Stock, equivalent to $16.52 per share
(300 million shares of $.01 par value authorized)....................... $229,128,321
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1994 (UNAUDITED)
INVESTMENT INCOME:
<S> <C> <C>
INTEREST INCOME......................................................... $ 7,964,500
EXPENSES:
Management fee-Note 2(a).............................................. $ 745,014
Shareholder servicing costs-Note 2(b)................................. 332,518
Professional fees..................................................... 25,323
Registration fees..................................................... 16,907
Custodian fees........................................................ 13,029
Prospectus and shareholders' reports-Note 2(b)........................ 10,565
Directors' fees and expenses-Note 2(c)................................ 9,497
Miscellaneous......................................................... 10,713
--------------
TOTAL EXPENSES.................................................... 1,163,566
--------------
INVESTMENT INCOME-NET............................................. 6,800,934
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (1,862,541)
Net unrealized (depreciation) on investments............................ (10,914,900)
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (12,777,441)
--------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (5,976,507)
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
APRIL 30, OCTOBER 31, 1994
1994 (UNAUDITED)
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 14,787,342 $ 6,800,934
Net realized gain (loss) on investments.............................. 3,638,963 (1,862,541)
Net unrealized (depreciation) on investments for the period.......... (19,025,827) (10,914,900)
--------------- ---------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............. (599,522) (5,976,507)
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net........................................... (14,749,817) (6,838,459)
From net realized gain on investments................................ (9,290,455) --
In excess of net realized gain on investments........................ (1,110,005) --
--------------- ---------------
TOTAL DIVIDENDS.................................................... (25,150,277) (6,838,459)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 149,233,338 150,182,717
Dividends reinvested................................................. 17,708,343 4,492,331
Cost of shares redeemed.............................................. (168,658,243) (162,244,552)
--------------- ---------------
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........... (1,716,562) (7,569,504)
--------------- ---------------
TOTAL (DECREASE) IN NET ASSETS................................. (27,466,361) (20,384,470)
NET ASSETS:
Beginning of period.................................................. 276,979,152 249,512,791
--------------- ---------------
End of period (including undistributed investment income-net;
$37,525 on April 30, 1994)......................................... $ 249,512,791 $ 229,128,321
=============== ===============
SHARES SHARES
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 7,960,391 8,638,603
Shares issued for dividends reinvested............................... 930,737 260,121
Shares redeemed...................................................... (9,001,544) (9,322,531)
--------------- ---------------
NET (DECREASE) IN SHARES OUTSTANDING............................... (110,416) (423,807)
=============== ===============
See independent accountants' review report and 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 period indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED APRIL 30, SIX MONTHS ENDED
------------------------------------------------------ OCTOBER 31, 1994
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
------ ------ ------ ------ ------ -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $17.39 $17.10 $17.77 $18.16 $19.23 $17.46
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net............... 1.16 1.14 1.10 1.06 1.00 .48
Net realized and unrealized gain (loss) on
investments....................... (.28) .67 .39 1.28 (1.06) (.94)
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.. .88 1.81 1.49 2.34 (.06) (.46)
------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net (1.17) (1.14) (1.10) (1.06) (1.00) (.48)
Dividends from net realized gain on investments -- -- -- (.21) (.63) --
Dividends in excess of net realized gain on
investments....................... -- -- -- -- (.08) --
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS............... (1.17) (1.14) (1.10) (1.27) (1.71) (.48)
------ ------ ------ ------ ------ ------
Net asset value, end of period...... $17.10 $17.77 $18.16 $19.23 $17.46 $16.52
------ ------ ------ ------ ------ ------
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 5.10% 10.87% 8.56% 13.35% (.74%) (5.38%)(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .99% .96% .96% .94% .93% .93%(1)
Ratio of net investment income to average
net assets........................ 6.63% 6.50% 6.07% 5.69% 5.25% 5.48%(1)
Portfolio Turnover Rate............. 67.09% 61.87% 51.18% 80.72% 34.92% 15.15%(2)
Net Assets, end of period (000's Omitted) $190,614 $219,299 $240,612 $276,979 $249,513 $229,128
(1) Annualized.
(2) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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, until August 24, 1994, acted as the distributor of the Fund's
shares, which are sold to the public without a sales load. The Dreyfus
Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
(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 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.
(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: 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.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise 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
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 six months ended
October 31, 1994.
(B) On August 4, 1994, Fund shareholders approved a revised Service Plan
(the "Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the Plan,
effective August 24, 1994, the Fund (a) reimburses the Distributor for
payments to third parties for distributing the Fund's shares and servicing
shareholder accounts and (b) pays the Manager, Dreyfus Service Corporation or
any affiliate (collectively "Dreyfus") for advertising and marketing relating
to the Fund and servicing shareholder accounts, at an aggregate annual rate
of .20 of 1% of the value of the Fund's average daily net assets. Each of the
Distributor and Dreyfus may pay Service Agents (a securities dealer,
financial institution or other industry professional) a fee in respect of the
Fund's shares owned by shareholders with whom the Service Agent has a
servicing relationship or for whom the Service Agent is the dealer or holder
of record. Each of the Distributor and Dreyfus determine the amounts to be
paid to Service Agents to which it will make payments and the basis on which
such payments are made. 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 wit
h 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.
Prior to August 24, 1994, the Fund's Service Plan ("prior Service Plan")
provided that the Fund pay Dreyfus Service Corporation 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. Dreyfus Service
Corporation made payments to one or more Service Agents based on the value of
the Fund's shares owned by clients of the Service Agent. The prior Service
Plan also separately provided 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 prior Service 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 six months ended October 31, 1994, $91,739 was charged to the
Fund pursuant to the Plan and $160,630 was charged pursuant to the prior
Service Plan.
(C) Prior to August 24, 1994 certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $2,500 and an attendance fee of $250 per meeting.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of securities amounted to
$67,448,471 and $75,955,551, respectively, for the six months ended October
31, 1994, and consisted entirely of long-term and short-term municipal
investments.
At October 31, 1994, accumulated net unrealized depreciation on
investments was $9,957,816, consisting of $3,345,639 gross unrealized
appreciation and $13,303,455 gross unrealized depreciation.
At October 31, 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.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS INSURED MUNICIPAL BOND FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Insured Municipal Bond Fund, Inc., including the statement of
investments, as of October 31, 1994, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended October 31, 1994. These financial statements and financial highlights
are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
April 30, 1994 and financial highlights for each of the five years in the
period ended April 30, 1994 and in our report dated June 1, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst and Young LLP Signature Logo)
New York, New York
December 5, 1994
(Dreyfus Lion "D" Logo)
DREYFUS INSURED MUNICIPAL
BOND FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 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. 306SA9410
(Dreyfus Logo)
Insured
Municipal
Bond Fund, Inc.
Semi-Annual
Report
October 31, 1994
