LETTER TO SHAREHOLDERS
Dear Shareholder:
As the Dreyfus New York Insured Tax Exempt Bond Fund ended its annual
reporting period on December 31, 1994, its net asset value was $10.66 per
share. Income dividends of approximately $.59 per share were paid during this
period, representing an annualized distribution rate per share of 5.59% based
on the December 31, 1994 net asset value. In addition, we are pleased to
report that all dividends paid from net investment income during this period
were exempt from Federal, New York State and New York City 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.
The bond market experienced one of its worst declines ever during 1994, as
the Federal Reserve Board took measures on six occasions during the year to
prevent a surge in inflation.
While some acceleration in the economy had been expected, the robust
growth experienced over the past year 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 1994, would clearly slow
economic expansion by year-end.
Before the writing of this letter, there were few signs that the economy
was slowing. In fact, a wide array of economic indexes was showing growth at
levels that have proven to be accurate forecasters of upward inflationary
trends in past recoveries. However, some signs of a potential slowing in
economic growth did emerge with recently released December data. For example,
durable goods orders declined .1% in December after a modest .2% rise in
November. Also, retail sales fell .1% in December, following an increase of
7.6% for the year (which was the strongest annual showing in 10 years).
The case for a dramatic slowing of the economy has yet to be made,
however. Housing starts, reported by the Commerce Department for November,
rose to their highest level in eight months. In addition, job gains remain
strong as the unemployment rate in December fell to 5.4%, which was the
lowest rate in over four years. 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 when compared to the past several
years.
There are some positive signs that the economy, while growing at a nearly
4% annual rate, may be able to avoid an inflationary surge. For example, the
increases in commodity prices have as yet not been evident in prices paid by
the consumer, but it may only be a matter of time before this occurs. Wage
inflation also remains practically nonexistent, but traditionally lags a
strong economic upsurge. Another positive sign that the economy may be able
to avoid inflation is the flattening yield curve for government securities.
This generally is evidence that the market believes that the economy will
slow in the coming months, making longer-maturity securities more attractive.
Currently, the Federal Reserve Board has to consider the policy
implication of such events as the difficulties of Orange County, California
and the devaluation of the Mexican peso with the resultant instability in the
currency markets. However, once these matters have stabilized, and should
signs of wage and/or consumer price inflation materialize, we anticipate that
the Fed will move again to stymie inflation.
As mentioned previously, 1994 was a very difficult year for fixed-income
securities with negative rates of return the norm. Few participants
anticipated the negative degree to which the markets would react to Federal
Reserve rate action. During this time, your portfolio performed well relative
to more aggressively positioned portfolios, while its performance overall
placed it in the mid-range of similar New York funds.
We have historically favored a high-coupon structure in your portfolio in
order to provide the most attractive level of tax
exempt income. We continued to emphasize triple-A insured, high-coupon
securities during this period and this strategy served well as the market
declined. A portfolio with a high-coupon profile tends to decline less than
more aggressive, low-coupon portfolios as the market reacts to rising
interest rates.
Going forward, our strategy continues to be one of caution. We believe
that inflationary pressures may rise in the coming months, but that vigilance
by the Fed will limit these increases and that interest rates will peak by
midyear. It is our belief that returns in the coming year will be largely
driven by coupon income and therefore we will continue to emphasize those
securities providing attractive levels of income.
We have provided 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
Director, Municipal Portfolio Management
The Dreyfus Corporation
January 16, 1995
New York, N.Y.
<TABLE>
<CAPTION>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
DECEMBER 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS NEW YORK
INSURED TAX EXEMPT BOND FUND AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
[Exhibit A]
*Source: Lehman Brothers
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (2/18/87)
DECEMBER 31, 1994 DECEMBER 31, 1994 TO DECEMBER 31, 1994
--------------------- --------------------- ---------------------------
<S> <C> <C> <C>
(6.62%) 6.16% 4.47%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus New York
Insured Tax Exempt Bond Fund on 2/18/87 (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 2/28/87 is used as the
beginning value on 2/18/87. All dividends and capital gain distributions are
reinvested.
As of December 31, 1994, the Fund is invested solely in New York municipal
securities which are insured, and its performance reflects the deduction of
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 as representative of the market. The Index does not take into
account fees and other expenses, nor is it composed of only insured
securities. 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 NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--100.0% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
Briarcliff Manor (Water Improvement) 6%, 9/1/2013 (Insured; FGIC)........... $ 175,000 $ 167,233
Broome County, COP, Public Safety Facility
5.25%, 4/1/2022 (Insured; MBIA)......................................... 3,875,000 3,138,130
East Rockaway Union Free School District 6.10%, 9/1/2012 (Insured; FGIC).... 100,000 97,098
Havestraw-Stony Point Central School District:
6.10%, 6/15/2001 (Insured; MBIA)........................................ 15,000 15,360
6.10%, 6/15/2002 (Insured; MBIA)........................................ 15,000 15,342
Metropolitan Transportation Authority:
Commuter Facility, Refunding (Service Contract)
7.50%, 7/1/2017 (Insured; AMBAC)...................................... 1,000,000 1,044,700
Transit Facility Revenue:
7%, 7/1/2009 (Insured; AMBAC)......................................... 5,400,000 5,750,622
6%, 7/1/2016 (Insured; AMBAC)......................................... 3,250,000 3,024,125
5%, 7/1/2017 (Insured; BIGI).......................................... 60,000 48,349
6.50%, 7/1/2018 (Insured; FGIC)....................................... 4,000,000 3,952,520
New York City:
7%, 8/1/2006 (Insured; MBIA)............................................ 660,000 695,389
7%, 8/1/2006 (Insured; MBIA)............................................ 340,000 352,716
7.25%, 3/15/2018 (Insured; FSA)......................................... 1,000,000 1,031,470
6%, 8/1/2018 (Insured; FSA)............................................. 4,900,000 4,501,287
New York City Housing Development Corp., General Housing
5.80%, 5/1/2002 (Insured; AMBAC)........................................ 400,000 397,608
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue:
6.50%, 6/15/1997 (Insured; AMBAC) (Prerefunded 6/15/1997) (a)........... 260,000 270,707
7.625%, 6/15/2017 (Insured; FGIC) (Prerefunded 6/15/1998) (a)........... 1,500,000 1,625,130
6%, 6/15/2019 (Insured; FSA)............................................ 2,300,000 2,126,994
6.20%, 6/15/2021 (Insured; AMBAC)....................................... 2,000,000 1,890,920
6.50%, 6/15/2021 (Insured; AMBAC)....................................... 2,240,000 2,184,717
5.50%, 6/15/2023 (Insured; MBIA)........................................ 5,000,000 4,241,550
New York City Transit Authority, Transit Facility Revenue
(Livingston Plaza Project) 6%, 1/1/2021 (Insured; FSA).................. 5,300,000 4,839,960
New York State 7.10%, 3/1/2020 (Insured; AMBAC)............................. 1,650,000 1,690,640
New York State Dormitory Authority, Revenue:
(City University) 6.30%, 7/1/2024 (Insured; AMBAC)...................... 2,800,000 2,667,084
(Colgate University) 6.50%, 7/1/2021 (Insured; MBIA).................... 4,000,000 3,950,200
(International House) 7.60%, 7/1/2009 (Insured; FGIC)................... 2,000,000 2,145,040
(New York University) 6%, 7/1/2015 (Insured; FGIC)...................... 1,750,000 1,638,508
(Refunding - Ithaca College) 6.25%, 7/1/2021 (Insured; MBIA)............ 2,000,000 1,920,140
(Refunding - Mount Sinai School of Medicine):
6.75%, 7/1/2009 (Insured; MBIA)....................................... 3,000,000 3,087,810
5%, 7/1/2021 (Insured; MBIA).......................................... 1,000,000 787,410
(State University Educational) 7.25%, 5/15/2015 (Insured; FGIC)
(Prerefunded 5/15/2000) (a)........................................... 1,000,000 1,093,860
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
New York State Energy Research and Development Authority, Revenue:
Facilities
(Con Edison Co. of New York Inc. Project):
Refunding 5.25%, 8/15/2020 (Insured; MBIA)........................ $ 4,800,000 $ 3,882,912
6.375%, 12/1/2027 (Insured; MBIA)................................. 5,000,000 4,721,700
6%, 3/15/2028 (Insured; MBIA)..................................... 4,000,000 3,580,000
Pollution Control:
(Central Hudson Gas and Electric)
7.375%, 10/1/2014 (Insured; FGIC)................................. 1,700,000 1,788,417
(Refunding - Niagara Mohawk Power Corp.)
6.625%, 10/1/2013 (Insured; FGIC)................................. 4,500,000 4,518,630
(Refunding - Rochester Gas and Electric Project)
6.50%, 5/15/2032 (Insured; MBIA).................................. 9,800,000 9,389,380
New York State Environmental Facility Corp., Water Facilities Revenue
(Jamaica Water Supply Province) 7.625%, 4/1/2029 (Insured; AMBAC)....... 4,000,000 4,188,720
New York State Housing Finance Agency, Multi-Family Housing Revenue
7.45%, 11/1/2028 (Insured; AMBAC)....................................... 2,000,000 2,047,940
New York State Medical Care Facilities Finance Agency,
Revenue:
(Aurelia Osborn Fox Memorial Hospital) 6.50%, 11/1/2019 (Insured; FSA) 3,000,000 2,941,710
(Buffalo General Hospital) 7.70%, 2/15/2022 (Insured; MBIA)........... 1,000,000 1,059,270
(Hospital and Nursing Home) 7.60%, 2/15/2029 (Insured; MBIA).......... 2,000,000 2,100,220
(Mental Health Service Facilities Improvement):
7.625%, 2/15/1998 (Insured; MBIA) (Prerefunded 2/15/1998) (a)..... 1,055,000 1,137,849
7.625%, 2/15/2008 (Insured; MBIA)................................. 945,000 1,001,284
6.25%, 8/15/2018 (Insured; AMBAC)................................. 4,820,000 4,605,173
7.375%, 8/15/2019 (Insured; MBIA)................................. 1,345,000 1,398,235
7.375%, 8/15/2019 (Insured; MBIA) (Prerefunded 8/15/1999) (a)..... 785,000 854,849
(North Shore University Hospital Mortgage Project)
7.20%, 11/1/2020 (Insured; MBIA).................................. 5,750,000 5,911,747
(Saint Francis Hospital Project) 7.625%, 11/1/2021 (Insured; FGIC).... 1,785,000 1,879,908
(Sisters of Charity Hospital) 6.625%, 11/1/2018 (Insured; AMBAC)...... 2,000,000 1,996,180
New York State Mortgage Agency, Revenue (Homeownership Mortgage):
7.50%, 4/1/2016 (Insured; MBIA)......................................... 2,785,000 2,873,062
7.50%, 10/1/2017 (Insured; MBIA)........................................ 1,500,000 1,551,765
New York State Power Authority 7.875%, 1/1/2013 (Insured; MBIA)............. 1,850,000 1,968,178
New York State Urban Development Corp., Revenue (Correctional Facilities):
7.50%, 1/1/2012 (Insured; AMBAC) (Prerefunded 1/1/1998) (a)............. 2,000,000 2,151,960
7.75%, Series C, 1/1/2013 (Insured; AMBAC) (Prerefunded 1/1/1998) (a)... 1,000,000 1,082,830
7.75%, Series D, 1/1/2013 (Insured; AMBAC) (Prerefunded 1/1/1998) (a)... 1,250,000 1,349,550
Port Authority of New York and New Jersey:
5.875%, 7/15/2018 (Insured; MBIA)....................................... 3,600,000 3,246,588
6.25%, 1/15/2027 (Insured; AMBAC)....................................... 2,000,000 1,881,840
Triborough Bridge and Tunnel Authority, Special Obligation Refunding:
6%, 1/1/2015 (Insured; AMBAC)........................................... 4,000,000 3,756,640
6.875%, 1/1/2015 (Insured; FGIC)........................................ 3,000,000 3,059,970
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
Triborough Bridge and Tunnel Authority, Special Obligation Refunding
(continued):
6%, 1/1/2019 (Insured; MBIA)............................................ $ 3,000,000 $ 2,784,630
Yonkers 7.80%, 8/1/2009 (Insured; FGIC)..................................... 2,900,000 3,174,543
--------------
TOTAL INVESTMENTS
(cost $148,929,705)..................................................... $148,278,299
==============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation FGIC Financial Guaranty Insurance Company
BIGI Bond Investors Guaranty Insurance FSA Financial Security Assurance
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (B) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
AAA Aaa AAA 100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(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) Fitch currently provides creditworthiness information for a limited
number of investments.
(c) At December 31, 1994, 27.7% of the Fund's net assets are insured by
AMBAC and 43.3% are insured by MBIA.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $148,929,705)-see statement..................................... $148,278,299
Interest receivable..................................................... 3,300,683
Receivable for shares of Beneficial Interest subscribed................. 440,000
Prepaid expenses........................................................ 6,620
--------------
152,025,602
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 77,202
Due to Custodian........................................................ 110,096
Due to Distributor...................................................... 32,500
Payable for shares of Beneficial Interest redeemed...................... 23,027
Accrued expenses........................................................ 86,869 329,694
---------- --------------
NET ASSETS ................................................................ $151,695,908
==============
REPRESENTED BY:
Paid-in capital......................................................... $153,624,538
Accumulated undistributed investment income_net......................... 23,283
Accumulated net realized (loss) on investments.......................... (1,300,507)
Accumulated net unrealized (depreciation) on investments_Note 3......... (651,406)
--------------
NET ASSETS at value applicable to 14,233,013 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $151,695,908
==============
NET ASSET VALUE, offering and redemption price per share
($151,695,908 / 14,233,013 shares)...................................... $10.66
=======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 10,844,143
EXPENSES:
Management fee_Note 2(a).............................................. $ 1,034,322
Shareholder servicing costs_Note 2(b)................................. 529,247
Professional fees..................................................... 45,703
Trustees' fees and expenses_Note 2(c)................................. 26,137
Prospectus and shareholders' reports_Note 2(b)........................ 21,479
Custodian fees........................................................ 17,446
Registration fees..................................................... 6,288
Miscellaneous......................................................... 18,444
--------------
1,699,066
Less-reimbursement of prospectus costs-Note 2(b)...................... 11,132
--------------
TOTAL EXPENSES.................................................. 1,687,934
--------------
INVESTMENT INCOME--NET.......................................... 9,156,209
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments_Note 3............................... $ (1,233,401)
Net unrealized (depreciation) on investments............................ (20,566,482)
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (21,799,883)
--------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(12,643,674)
==============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
--------------------------------
1993 1994
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income--net.................................................. $ 9,829,107 $ 9,156,209
Net realized gain (loss) on investments................................. 2,913,561 (1,233,401)
Net unrealized appreciation (depreciation) on investments for the year.. 7,896,383 (20,566,482)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... 20,639,051 (12,643,674)
-------------- --------------
DIVIDENDS TO SHAREHOLDERS:
From investment income--net............................................. (9,829,107) (9,132,926)
From net realized gain on investments................................... (3,513,228) ___
In excess of net realized gain on investments........................... (67,106) ___
-------------- --------------
TOTAL DIVIDENDS....................................................... (13,409,441) (9,132,926)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 92,107,533 38,170,749
Dividends reinvested.................................................... 9,955,907 6,467,485
Cost of shares redeemed................................................. (91,361,631) (69,423,052)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS 10,701,809 (24,784,818)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 17,931,419 (46,561,418)
NET ASSETS:
Beginning of year....................................................... 180,325,907 198,257,326
-------------- --------------
End of year (including undistributed investment income--net; $23,283 in 1994) $198,257,326 $151,695,908
============== ==============
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 7,690,615 3,391,665
Shares issued for dividends reinvested.................................. 826,830 579,744
Shares redeemed......................................................... (7,602,611) (6,202,246)
-------------- --------------
TOTAL INCREASE (DECREASE) IN SHARES OUTSTANDING....................... 914,834 (2,230,837)
============== ==============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $10.75 $10.64 $11.33 $11.60 $12.04
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net....................... .72 .66 .63 .60 .60
Net realized and unrealized gain (loss)
on investments............................. (.11) .69 .31 .66 (1.39)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .61 1.35 .94 1.26 (.79)
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income--net........ (.72) (.66) (.63) (.60) (.59)
Dividends from net realized gain on investments -- -- (.04) (.22) --
Dividends in excess of net realized gain on investments -- -- -- -- --
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (.72) (.66) (.67) (.82) (.59)
------- ------- ------- ------- -------
Net asset value, end of year................. $10.64 $11.33 $11.60 $12.04 $10.66
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 5.91% 13.06% 8.55% 11.08% (6.62%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .50% .88% .90% .96% .98%
Ratio of net investment income to average net assets 6.74% 6.01% 5.49% 5.01% 5.31%
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .61% .17% .11% .02% .01%
Portfolio Turnover Rate...................... 63.12% 15.95% 16.12% 19.89% 12.79%
Net Assets, end of year (000's Omitted)...... $92,259 $147,527 $180,326 $198,257 $151,696
</TABLE>
See notes to financial statements.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-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. 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
Trustees. 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.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(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, 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.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately of
$1,300,000 available for Federal income tax purposes to be applied against
future net securities profit, if any, realized subsequent to December 31,
1994. If not applied, the carryover expires in fiscal 2002.
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 daily value of the
Fund's net assets for any full year. There was no expense reimbursement for
the year ended December 31, 1994.
(B) On August 3, 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 certain Service Agents 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 aggre
gate annual rate of .25 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 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 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
.25 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 year.
During the year ended December 31, 1994, $145,904 was charged to the Fund
pursuant to the Plan, of which $3,965 was waived by the Manager and $296,195
was charged to the Fund pursuant to the prior Service Plan, of which $7,167
was waived by the Manager.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(C) Prior to August 24, 1994, certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each trustee 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 investment securities
amounted to $44,425,370 and $64,512,440, respectively, for the year ended
December 31, 1994, and consisted entirely of long-term and short-term
municipal investments.
At December 31, 1994, accumulated net unrealized depreciation on
investments was $651,406, consisting of $3,836,711 gross unrealized
appreciation and $4,488,117 gross unrealized depreciation.
At December 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 NEW YORK INSURED TAX EXEMPT BOND FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus New York Insured Tax Exempt Bond Fund, including the statement of
investments, as of December 31, 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 December 31, 1994 by correspondence with the custodian.
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 New York Insured Tax Exempt Bond Fund at December 31,
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 LLP Signature Logo)
New York, New York
February 3, 1995
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income--net during the fiscal year ended
December 31, 1994 as "exempt--interest dividends" (not subject to regular
Federal and, for individuals who are New York residents, New York State and
New York City personal income taxes).
(Dreyfus `D' Logo)
DREYFUS NEW YORK INSURED
TAX EXEMPT BOND FUND
200 Park Avenue
New York, NY 10166
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. 577AR9412
(Dreyfus Logo)
New York Insured
Tax Exempt
Bond Fund
Annual Report
December 31, 1994
(Dreyfus Lion Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
_______________________________________________________________
| | | |
| | | |
| PERIOD | LEHMAN BROTHERS | DREYFUS NEW YORK |
| | MUNICIPAL | INSURED TAX EXEMPT|
| | BOND INDEX * | BOND FUND |
|----------------| -----------------| ------------------|
| 2/18/87 | 10,000 | 10,000 |
| 12/31/87 | 9,806 | 8,643 |
| 12/31/88 | 10,802 | 9,622 |
| 12/31/89 | 11,968 | 10,464 |
| 12/31/90 | 12,840 | 11,082 |
| 12/31/91 | 14,399 | 12,530 |
| 12/31/92 | 15,668 | 13,601 |
| 12/31/93 | 17,593 | 15,108 |
| 12/31/94 | 16,683 | 14,108 |
|--------------------------------------------------------------|
*Source: Lehman Brothers
