Dreyfus
Insured Municipal
Bond Fund, Inc.
SEMIANNUAL REPORT October 31, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
15 Financial Highlights
16 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Insured
Municipal Bond Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Insured Municipal
Bond Fund, Inc. covering the six-month period from May 1, 1999 through October
31, 1999. 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, Joseph Darcy.
When the reporting period began, evidence had emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might re-emerge caused the Federal Reserve Board to raise short-term interest
rates twice during the summer of 1999, effectively offsetting most of last
fall' s interest-rate cuts. Higher interest rates led to some erosion of
municipal bond prices, especially toward the end of the reporting period.
In this environment, however, the yields of tax-exempt bonds have recently been
quite attractive compared to the after-tax yields of taxable bonds of comparable
maturity and credit quality. This is especially true for investors in the higher
federal income tax brackets.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Insured Municipal Bond Fund, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 1999
DISCUSSION OF FUND PERFORMANCE
Joseph Darcy, Portfolio Manager
How did Dreyfus Insured Municipal Bond Fund, Inc. perform during the period?
The fund achieved a -5.58% total return(1) over the six-month period ended
October 31, 1999. In comparison, the Lipper Insured Municipal Debt Funds
category average returned -5.49% over the same period.(2)
We attribute the fund' s modest underperformance to our unrelenting focus on
credit quality. Although all of the fund's holdings are insured by third-party
insurers, we carefully analyze the financial condition of the underlying
issuers, avoiding those that do not meet our credit criteria. In contrast, many
other funds in our peer group hold such securities, which tend to offer
incrementally higher yields. As you can see, negative returns permeated the
municipal market overall during this period.
What is the fund's investment approach?
Our goal is to seek as high a level of federally tax-exempt income as is
consistent with preserving capital from a diversified portfolio of insured
municipal bonds. In pursuing this objective, we employ two primary strategies.
First, we evaluate interest-rate trends and supply-and-demand factors in the
bond market. Based on that assessment, we select the individual tax-exempt bonds
that we believe potentially can provide the highest returns with the least risk.
We look at such criteria as the bond's yield, price, age, creditworthiness of
its issuer, and any provisions for early redemption.
Second, we actively manage the fund's duration in anticipation of temporary
supply-and-demand changes. If we expect the supply of newly issued bonds to
increase temporarily, we may reduce the fund's duration to make cash available
for the purchase of higher yielding securities. Conversely, if we expect demand
for municipal bonds to surge at a time when we anticipate little issuance, we
may increase the fund's
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
duration to maintain current yields for as long as practical. At other times, we
try to maintain a "neutral" duration of about eight years, which is consistent
with our benchmark index.
What other factors influenced the fund's performance?
The fund and the municipal bond marketplace were adversely affected by rising
interest rates over the past six months. When the reporting period began on May
1, 1999, investors were concerned that continued economic strength might
rekindle long-dormant inflationary pressures. In fact, in an attempt to
forestall a potential reacceleration of inflation, the Federal Reserve Board
raised short-term interest rates twice during the summer of 1999, causing most
municipal bond prices to fall. No investor in the municipal market was insulated
from this environment.
In addition, strong economic conditions have contributed to the nation's first
federal budget surplus in many years. While the government has had less need to
issue U.S. Treasury securities, demand has remained high from domestic and
overseas investors. This imbalance between supply and demand has recently
constrained the rise of taxable bond yields relative to tax-exempt bonds. As a
result, municipal bonds are currently offering tax-exempt yields that compare
very favorably with taxable yields after adjusting for taxes.
What is the fund's current strategy?
Beginning in May, when it was apparent that U.S. and international economic
growth was stronger than many analysts anticipated, we reduced the fund's
duration in order to mitigate the fund's sensitivity to the eroding effects of
higher interest rates. Our lower duration -- which was as low as seven and
one-quarter years during the reporting period -- also put the fund in a good
position to capture high current yields as they became available.
To achieve a lower duration, we sold some of our longer maturity bonds that were
priced at a discount to face value. We reinvested the proceeds of these sales in
tax-exempt money market instruments as well as higher yielding intermediate-term
bonds.
More recently, we have begun to increase the fund's average duration, which
ended the reporting period at about eight years. We made this change because we
believe that the bulk of the recent interest-rate increases may be behind us,
giving us the opportunity to lock in prevailing yields. We have found attractive
yield opportunities in current coupon bonds from states with high income taxes,
where demand for municipal bonds and market liquidity tend to be greatest. We
have also found potentially attractive total return opportunities in some
discounted bonds that, in our view, were punished more severely than
circumstances warranted during the recent market decline.
Finally, while all of the bonds in this fund carry third-party insurance,(3 )we
have continued to carefully and independently evaluate the creditworthiness of
issuers in order to help ensure the high credit quality of the portfolio.
November 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX
(AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE. RETURN
FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY THE DREYFUS
CORPORATION PURSUANT TO AN UNDERTAKING IN EFFECT THAT MAY BE EXTENDED,
TERMINATED OR MODIFIED AT ANY TIME. HAD THESE EXPENSES NOT BEEN ABSORBED, THE
FUND'S RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
(3) PORTFOLIO INSURANCE EXTENDS TO THE REPAYMENT OF PRINCIPAL AND PAYMENT OF
INTEREST IN THE EVENT OF DEFAULT. IT DOES NOT EXTEND TO THE MARKET VALUE OF
PORTFOLIO SECURITIES OR TO THE VALUE OF THE FUND'S SHARES.
The Fund
STATEMENT OF INVESTMENTS
October 31, 1999 (Unaudited)
<TABLE>
Principal
LONG-TERM MUNICIPAL INVESTMENTS--97.8% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CALIFORNIA--7.4%
Alameda Corridor Transportation Authority, Revenue
4.75%, 10/1/2025 (Insured; MBIA) 2,000,000 1,658,420
San Francisco City and County Airports Commission,
International Airport Revenue
6.10%, 5/1/2025 (Insured; FGIC) (Prerefunded 5/1/2004) 8,240,000 (a) 8,883,379
San Joaquin Hills Transportation Corridor Agency,
Toll Road Revenue Zero Coupon, 1/15/2031 (Insured; MBIA) 10,000,000 1,494,000
COLORADO--1.5%
E-470 Public Highway Authority, Revenue
Zero Coupon, 9/1/2016 (Insured; MBIA) 6,550,000 2,377,388
DELAWARE--3.7%
Delaware Economic Development Authority, Revenue:
Gas Facilities (Delmarva Power & Light)
7.30%, 7/1/2021 (Insured; FGIC) 1,000,000 1,056,760
Water (United Water Delaware Inc., Project)
6.20%, 6/1/2025 (Insured; AMBAC) 5,000,000 5,011,350
FLORIDA--3.8%
Florida Housing Finance Agency, SFMR
6.65%, 7/1/2026 (Insured; MBIA) 730,000 752,061
Gulf Breeze, Revenue (Capital Funding)
4.50%, 10/1/2027 (Insured; MBIA) 5,000,000 3,947,250
Lee County, Solid Waste System Revenue
7%, 10/1/2011 (Insured; MBIA) 1,420,000 1,502,829
GEORGIA--.6%
Douglasville-Douglas County Water and
Sewer Authority, Sewer Revenue
4.50%, 6/1/2023 (Insured; FGIC) 1,250,000 986,425
ILLINOIS--5.2%
Chicago O'Hare International Airport, Special Facility Revenue
(International Terminal) 6.50%, 1/1/2018 (Insured; FGIC) 1,750,000 1,754,725
Metropolitan Pier and Exposition Authority,
Dedicated State Tax Revenue
(McCormick Place Expansion Project)
6.50%, 6/15/2027 (Insured; FGIC) 6,375,000 6,618,589
KANSAS--3.9%
Wyandotte County, Unified Government Utilities
System Revenue, Improvement
4.50%, 9/1/2028 (Insured; MBIA) 8,150,000 6,330,350
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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MASSACHUSETTS--4.1%
Massachusetts Education Loan Authority,
Education Loan Revenue:
7.60%, 1/1/2003 (Insured; MBIA) 560,000 573,535
7.65%, 1/1/2004 (Insured; MBIA) 650,000 665,600
Massachusetts Health and Educational
Facilities Authority, Revenue
(Brandeis University) 4.75%, 10/1/2028 (Insured; MBIA) 1,600,000 1,303,472
Massachusetts Housing Finance Agency,
Housing Revenue (Rental-Mortgage)
6.50%, 7/1/2025 (Insured; AMBAC) 1,000,000 1,033,380
Massachusetts Port Authority,
Special Facilities Revenue (US Air Project)
5.75%, 9/1/2016 (Insured; MBIA) 1,000,000 970,030
Massachusetts Turnpike Authority, Revenue
(Metropolitan Highway System)
5%, 1/1/2039 (Insured; AMBAC) 2,500,000 2,080,650
MICHIGAN--1.0%
Michigan Housing Development Authority,
LOR (Greenwood Villa Project)
6.50%, 9/15/2007 (Insured; FSA) 1,500,000 1,576,650
MONTANA--1.5%
Forsyth, PCR (Puget Sound, Power & Light Co.)
7.25%, 8/1/2021 (Insured; AMBAC) 2,250,000 2,373,188
NEVADA--2.1%
Reno, HR (Saint Mary's Hospital)
7.75%, 7/1/2015 (Insured; BIGI)
(Prerefunded 1/1/2000) 1,245,000 (a) 1,276,698
Washoe County, Gas Facilities Revenue
(Sierra Pacific Power Co. Project)
6.70%, 11/1/2032 (Insured; MBIA) 2,000,000 2,102,180
NEW JERSEY--6.1%
New Jersey Economic Development Authority,
PCR (Public Service Electric & Gas Co.)
6.40%, 5/1/2032 (Insured; MBIA) 7,600,000 7,774,040
New Jersey Health Care Facilities Financing Authority, Revenue
(Jersey Shore Medical Center):
6.25%, 7/1/2021 (Insured; AMBAC) 70,000 71,657
6.25%, 7/1/2021 (Insured; AMBAC)(Prerefunded 7/1/2004) 30,000 (a) 32,417
New Jersey Housing and Mortgage Finance Agency, Revenue
Home Buyer 6.20%, 10/1/2025 (Insured; MBIA) 1,995,000 2,026,501
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW YORK--21.0%
Albany Airport Authority, Airport Revenue
5.375%, 12/15/2017 (Insured; FSA) 1,250,000 1,151,963
Buffalo Municipal Water Finance Authority,
Water System Revenue, Refunding
5%, 7/1/2017 (Insured; FGIC) 3,795,000 3,363,888
New York City Transitional Financing Authority, Revenue
5%, 11/15/2015 (Insured; FGIC) 2,485,000 2,251,385
New York State Dormitory Authority, Revenue:
(Beth Israel Medical Center)
6%, 11/1/2015 (Insured; MBIA) 8,395,000 8,418,758
(Mount Sinai Medical School)
5.15%, 7/1/2024 (Insured; MBIA) 3,000,000 2,678,880
(Siena College) 5.70%, 7/1/2017 (Insured; MBIA) 3,585,000 3,514,698
(State University Athletic Facility)
5.25%, 7/1/2018 (Insured; MBIA) 2,000,000 1,837,980
New York State Energy, Research and
Development Authority, Facilities Revenue
(Con Edison Co.-New York, Inc.)
6.375%, 12/1/2027 (Insured; MBIA) 3,000,000 3,023,880
New York State Medical Care Facilities Finance Agency,
Revenue (Long-Term Healthcare)
6.50%, 11/1/2015 (Insured; FSA) 4,655,000 4,891,195
Port Authority of New York and New Jersey
4.25%,10/1/2026 (Insured; FGIC) 2,500,000 1,890,750
St. Lawrence County Industrial Development Agency,
Civic Facility Revenue (Lawrence University Project)
5.50% 7/1/2013(Insured; MBIA) 1,135,000 1,115,126
NORTH DAKOTA--2.2%
Mercer County, PCR, Refunding
(Montana-Dakota Utilities Co. Project)
6.65%, 6/1/2022 (Insured; FGIC) 3,500,000 3,646,405
PENNSYLVANIA--1.9%
Beaver County Industrial Development Authority, PCR
(Ohio Edison Co./Mansfield)
7%, 6/1/2021 (Insured; FGIC) 3,000,000 3,149,790
RHODE ISLAND--2.7%
Rhode Island Housing and Mortgage Finance Corp., SFMR
9.30%, 7/1/2004 (Insured; FGIC) 15,000 15,021
Rhode Island Port Authority and Economic Development Corp.,
Airport Revenue 6.625%, 7/1/2024 (Insured; FSA) 4,250,000 4,428,160
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA--3.3%
Charleston, Waterworks and Sewer Revenue
(Capital Improvement)
4.50%, 1/1/2024 (Insured; FGIC) 2,000,000 1,584,180
Spartanburg, Waterworks Revenue
5.25%,6/1/2023 (Insured; FGIC) 4,100,000 3,683,399
TEXAS--5.2%
Brazos River Authority, PCR (Texas Utilities Electric Co. Project)
6.625%, 6/1/2022 (Insured; FGIC) 5,500,000 5,714,885
Brownsville Housing Finance Corp., SFMR
(Mortgage-Multiple Originators and Services)
9.625%, 12/1/2011 (Insured; FGIC) 585,000 591,260
Houston, Airport Systems Revenue
5%,7/1/2028 (Insured; FGIC) 2,500,000 2,125,000
VIRGINIA--9.0%
Richmond Metropolitan Authority, Expressway Revenue
5.25%, 7/15/2022 (Insured; FGIC) 2,600,000 2,379,182
Upper Occoquan Sewer Authority, Regional Sewer Revenue
5.15%, 7/1/2020 (Insured; MBIA) 5,000,000 4,513,600
Virginia College Building Authority,
Educational Facilities Revenue
(Washington and Lee University)
5.25%, 1/1/2026 (Insured; MBIA) 8,500,000 7,688,760
WASHINGTON--9.9%
King County, Sewer Revenue
6.125%, 1/1/2033 (Insured; MBIA) 5,000,000 5,013,050
Washington, MFMR:
(Gilman Meadows Project) 7.40% 1/1/2030 (Insured; FSA) 3,000,000 3,230,100
(Mallard Cove Project 1) 7.40%, 1/1/2030 (Insured; FSA) 800,000 861,360
(Mallard Cove Project 2) 7.40%, 1/1/2030 (Insured; FSA) 2,700,000 2,907,090
Yakima-Tieton Irrigation District, Revenue
6.20%, 6/1/2019 (Insured; FSA) 4,000,000 4,038,199
WEST VIRGINIA--1.7%
West Virginia, 6.50% 11/1/2026 (Insured; FGIC) 2,600,000 2,759,925
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $162,248,227) 158,701,393
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
SHORT-TERM MUNICIPAL INVESTMENTS--.1% Amount ($) Value ($)
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NEW YORK;
New York City Municipal Water Finance Authority,
Water and Sewer System Revenue VRDN
3.40% (Insured; FGIC) (cost $200,000) 200,000 (b) 200,000
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TOTAL INVESTMENTS (cost $162,448,227) 97.9% 158,901,393
CASH AND RECEIVABLES (NET) 2.1% 3,378,832
NET ASSETS 100.0% 162,280,225
Summary of Abbreviations
AMBAC American Municipal Bond LOR Limited Obligation Revenue
Assurance Corporation MBIA Municipal Bond Investors Assurance
BIGI Bond Investors Guaranty Insurance Insurance Corporation
FGIC Financial Guaranty Insurance MFMR Multi-Family Mortgage Revenue
Company PCR Pollution Control Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 99.9
F-1 MIG1/P1 SP1/A1 .1
100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) SECURITIES PAYABLE ON DEMAND. VARIABLE INTEREST RATE-SUBJECT TO PERIODIC
CHANGE.
(C) AT OCTOBER 31, 1999, 43.9% OF THE FUND'S NET ASSETS ARE INSURED BY MBIA AND
32.3% ARE INSURED BY FGIC.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999 (Unaudited)
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 162,448,227 158,901,393
Cash 80,808
Interest receivable 3,415,861
Prepaid expenses 17,261
162,415,323
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 91,966
Due to Distributor 3,259
Payable for shares of Common Stock redeemed 2,794
Accrued expenses 37,079
135,098
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NET ASSETS ($) 162,280,225
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 166,386,400
Accumulated undistributed investment income--net 45,194
Accumulated net realized gain (loss) on investments (604,535)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (3,546,834)
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NET ASSETS ($) 162,280,225
- --------------------------------------------------------------------------------
SHARES OUTSTANDING
(300 million shares of $.01 par value Common Stock authorized) 9,651,188
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
16.81
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended October 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 4,911,223
EXPENSES:
Management fee--Note 3(a) 516,254
Shareholder servicing costs--Note 3(b) 220,734
Professional fees 25,038
Directors' fees and expenses--Note 3(c) 16,212
Registration fees 14,345
Prospectus and shareholders' reports--Note 3(b) 10,802
Custodian fees 8,491
Loan commitment fees--Note 2 391
Miscellaneous 6,583
TOTAL EXPENSES 818,850
Less--reduction in management fee due to
undertaking--Note 3(a) (87,098)
NET EXPENSES 731,752
INVESTMENT INCOME--NET 4,179,471
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4 ($):
Net realized gain (loss) on investments (352,323)
Net unrealized appreciation (depreciation) on investments (13,644,923)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (13,997,246)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (9,817,775)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1999 Year Ended
(Unaudited) April 30, 1999
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 4,179,471 8,576,034
Net realized gain (loss) on investments (352,323) 1,605,218
Net unrealized appreciation (depreciation)
on investments (13,644,923) 2,176,440
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS (9,817,775) 12,357,692
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
INVESTMENT INCOME--NET (4,134,277) (8,576,034)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 12,223,758 37,949,044
Dividends reinvested 2,816,664 5,758,276
Cost of shares redeemed (19,411,621) (53,321,793)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (4,371,199) (9,614,473)
TOTAL INCREASE (DECREASE) IN NET ASSETS (18,323,251) (5,832,815)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 180,603,476 186,436,291
END OF PERIOD 162,280,225 180,603,476
Undistributed investment income-net 45,194 --
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 687,708 2,072,158
Shares issued for dividends reinvested 161,736 314,254
Shares redeemed (1,100,613) (2,913,873)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (251,169) (527,461)
SEE NOTES TO FINANCIAL STATEMENTS.
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.
<TABLE>
Six Months Ended
October 31, 1999 Year Ended April 30,
------------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning
of period 18.24 17.88 17.31 17.13 17.25 17.46
Investment Operations:
Investment income--net .43 .84 .85 .87 .91 .94
Net realized and unrealized
gain (loss) on investments (1.44) .36 .57 .18 (.11) (.21)
Total from Investment Operations (1.01) 1.20 1.42 1.05 .80 .73
Distributions:
Dividends from investment
income--net (.42) (.84) (.85) (.87) (.92) (.94)
Net asset value, end of period 16.81 18.24 17.88 17.31 17.13 17.25
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (11.07)(a) 6.80 8.31 6.24 4.58 4.36
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .85(a) .85 .85 .80 .85 .94
Ratio of net investment income
to average net assets 4.84(a) 4.60 4.76 5.03 5.14 5.49
Decrease reflected in above
expense ratios due to
undertakings by the Manager .10(a) .10 .10 .17 .09 --
Portfolio Turnover Rate 10.69(b) 32.27 64.38 93.39 82.86 41.19
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 162,280 180,603 186,436 192,472 208,388 220,398
(A) ANNUALIZED.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Insured Municipal Bond Fund, Inc. (the "fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified
open-end management investment company. The fund's investment objective is to
provide investors with as high a level of current income exempt from Federal
income tax as is 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. Premier Mutual Fund Services, Inc.
(the "Distributor" ) is the distributor of the fund's shares, which are sold to
the public without a sales charge.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities 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.Under the terms of the custody agreement, the fund received net
earnings credits of $5,173 during the period ended October 31, 1999, based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(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 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.
(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 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 $252,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1999. If not
applied, the carryover expires in fiscal 2005.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
October 31, 1999, the fund did not borrow under the Facility.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 .60 of 1% of the value of the
fund' s average daily net assets and is payable monthly. The Agreement provides
that if in any full year the aggregate expenses of the fund, exclusive of taxes,
brokerage, commitment fees, interest on borrowings and extraordinary expenses,
exceed 11_2% of the value of the fund's average net assets, the fund may deduct
from the payments to be made to the Manager, or the Manager will bear such
excess. However, the Manager had undertaken from May 1, 1999 through October 31,
1999 to reduce the management fee paid by the fund, to the extent that the
fund' s aggregate annual expenses (exclusive of certain expenses as described
above) exceeded an annual rate of .85 of 1% of the value of the fund's average
daily net assets. The reduction in management fee, pursuant to the undertaking,
amounted to $87,098 during the period ended October 31, 1999.
(b) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1 under the
Act, the fund (a) reimburses the Distributor for payments to certain Service
Agents (a securities dealer, financial institution or other industry
professional) for distributing the fund' s shares and servicing shareholder
accounts ("Servicing") and (b) pays the Manager, Dreyfus Service Corporation, a
wholly-owned subsidiary of the Manager, and any affiliate of either of them
(collectively, "Dreyfus") for advertising and marketing relating to the fund and
for Servicing, at an aggregate annual rate of .20 of 1% of the value of the
fund's average daily net assets. Both the Distributor and Dreyfus may pay one or
more Service Agents 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. Both the Distributor and Dreyfus
determine the amounts, if any, to be paid to Service Agents under the Plan and
the basis on which such payments are made. The fees payable under the Plan are
payable without regard
to actual expenses incurred. 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 value of the fund's average daily net assets for any full
fiscal year. During the period ended October 31, 1999, the fund was charged
$174,675 pursuant to the Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 1999, the fund was charged $38,235 pursuant to the transfer
agency agreement.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $2,500 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(d) A .10% redemption fee is charged and retained by the fund on shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund' s Exchange privilege. During the period ended
October 31, 1999, redemption fees retained by the fund amounted to $7,247.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended October 31, 1999, amounted to
$17,813,417 and $23,534,403, respectively.
At October 31, 1999, accumulated net unrealized depreciation on investments was
$3,546,834, consisting of $3,412,090 gross unrealized appreciation and
$6,958,924 gross unrealized depreciation.
At October 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
NOTES
For More Information
Dreyfus Insured Municipal Bond Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to
[email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 306SA9910
