DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus New York
Insured Tax Exempt Bond Fund. For the fiscal year ended December 31, 1995,
your Fund produced a total return of 15.38% per share.* Income dividends
exempt from Federal, State of New York and New York City personal income
taxes of approximately $.586 per share were paid which is equivalent to an
annualized tax-free distribution rate per share of 5.03%.** Some income may
be subject to the Federal Alternative Minimum Tax (AMT) for certain
shareholders.
THE ECONOMY
Additional evidence that economic activity remained sluggish and that
inflation continued to be under control moved the Federal Reserve Board to
further ease the Federal Funds rate in December. (The Federal Funds rate is
the rate at which the nation's banks borrow money from each other and all
other short-term rates are based on it.) This was the second reduction for
this important short-term rate in 1995, the first occurring in July. The
latest 25 basis point reduction in December put the rate at 5.50%. Major
incentives for this additional reduction were the inflation report in
November - the Consumer Price Index was flat for the first time in 4 1/2 years
- and the generally slow rate of economic growth. As it did in July, the
Federal Reserve left unchanged the discount rate - the rate at which the
Federal Reserve lends to member banks. The discount rate remained at 5.25%
throughout 1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and very modest industrial production lent credence to
fears about the possibility of recession. Consumer spending was inhibited
last year by the slow rate of new job creation, sluggish growth in wages and
salaries, and the continued trend of corporate cost-related layoffs. The
lethargic pace of consumer spending last year culminated in one of the worst
holiday sales periods since the business slump in 1990-1991, despite steep
price markdowns by retailers.
Industrial production climbed modestly during the year. By November, the
nation's factories operated at only 83.1% of capacity, down for the third
consecutive month. This was a reflection of weakening demand and further
evidence of the diminishing pressure to raise prices. Furthermore,
inventories built up by year-end, another sign of slackening demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the economy. As we go
forward without a budget agreement, we believe reductions in annually
appropriated spending will tend to retard the economy. With an agreement, the
combination of cuts in appropriations and other spending reductions should
have the same effect.
There are strong indications that inflation is under control. Until
midyear 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now, the focus seems to have shifted to actions designed to avoid
recession. In an election year, few things are less desirable for political
incumbents than recession.
MARKET ENVIRONMENT
Municipal bonds have enjoyed a dramatic bull market for the past year.
Our outlook continues to be very favorable, given the sluggish economy, and
we see little threat of inflation. Should these conditions persist, the
Federal Reserve Board may lower rates further which would be very positive
for the bond markets.
A concern is the current budget stalemate which has produced great
uncertainty in the market. If the President and Congress can reach agreement
on the details to achieve a balanced budget, it would be another strong
positive for the fixed income markets.
In addition to lower rates, municipal bond market performance has been
helped in the past year by the reduction in the supply of new issues.
However, the early redemption of outstanding issues remains problematic.
THE PORTFOLIO
The Fund's performance during the past year was restrained by a duration
that was shorter than that of many of our competitors. With our positive view
of market potential in the coming year, we have begun to extend the duration
of the Fund in anticipation of enhancing returns.
The portfolio's structure during the reporting period must be viewed as
conservative given the dramatic decline in yields which occurred. While your
returns were attractive, our traditional emphasis on income and low
volatility were attributes that were not rewarded as well as those funds with
more volatile structures. Our ability to easily shift emphasis to a more
aggressive posture was hampered by the low new issue volume during 1995.
As mentioned previously, market yields declined for most of the year. The
persistently low interest rate environment is a threat to an income-oriented
fund such as your New York Insured Tax Exempt Bond Fund. The risk of early
redemption of high coupon securities grows with each passing day of
relatively low rates. A principal strategy to address this risk has been to
identify securities in danger of early redemption and attempt to achieve a
price above the call price and reinvest proceeds at an attractive level of
income. This will be an ongoing exercise in the coming year.
With inflation low, the economy sluggish but resilient, and the Federal
Reserve Board's outstanding track record to date, we do not envision a major
sell-off due to accelerating inflation. We therefore will continue to
maintain a fully invested position with strong credit quality during the
coming months.
Our primary task - to earn a high level of current income to the extent
consistent with preservation of capital - continues to guide our portfolio
management decisions.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Sincerely,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
January 16, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the net asset
value per share at the end of the period.
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND DECEMBER 31, 1995
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:
Dollars
$19,595
Lehman Brothers
Municipal Bond Index*
$16,277
Dreyfus New York
Insured Tax Exempt
Bond Fund
*Source: Lehman Brothers]
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (2/18/87)
DECEMBER 31, 1995 DECEMBER 31, 1995 TO DECEMBER 31, 1995
__________ __________ _____________
<S> <C> <C> <C>
15.38% 7.97% 5.65%
</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.
The Fund invests primarily in New York municipal securities, which are
insured as to the timely payment of principal and interest by recognized
insurers of municipal securities. The Fund's performance shown in the line
graph takes into account fees and expenses. Unlike the Fund, the Lehman
Brothers Municipal Bond Index is an unmanaged total return performance
benchmark for the long-term, investment-grade , geographically unrestricted
tax exempt bond market, calculated by using municipal bonds selected to be
representative of the municipal market overall; however, the bonds in the
Index generally are not insured. The Index does not take into account
charges, fees and other expenses. Also, unlike the Fund which principally
limits investments to New York municipal obligations, the Index is not state
specific. These factors can contribute to the Index potentially outperforming
the Fund. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
_______ _______
<S> <C> <C>
Albany Municipal Water Finance Authority, Water and Sewer System Revenue,
Refunding 5.50%, 12/1/2022 (Insured; FGIC).............................. $ 4,000,000 $ 4,007,400
Briarcliff Manor (Water Improvement) 6%, 9/1/2013 (Insured; FGIC)........... 175,000 195,692
Broome County, COP Public Safety Facility
5.25%, 4/1/2022 (Insured; MBIA)......................................... 3,875,000 3,801,608
East Rockaway Union Free School District 6.10%, 9/1/2012 (Insured; FGIC).... 100,000 111,791
Havestraw-Stony Point Central School District:
6.10%, 6/15/2001 (Insured; MBIA)........................................ 15,000 16,328
6.10%, 6/15/2002 (Insured; MBIA)........................................ 15,000 16,460
Islip Resource Recovery Agency, RRR 6.125%, 7/1/2013 (Insured; AMBAC)....... 1,425,000 1,518,181
Metropolitan Transportation Authority, Revenue:
Commuter Facility (Grand Central Terminal)
5.70%, 7/1/2024 (Insured; FSA)........................................ 5,000,000 5,077,000
Transit Facility:
7%, 7/1/2009 (Insured; AMBAC)......................................... 5,400,000 6,495,768
6%, 7/1/2016 (Insured; AMBAC)......................................... 3,250,000 3,365,668
5%, 7/1/2017 (Insured; BIGI).......................................... 60,000 58,343
6.50%, 7/1/2018 (Insured; FGIC)....................................... 4,000,000 4,365,560
New York City:
7%, 8/1/2006 (Insured; MBIA)............................................ 340,000 359,917
7.25%, 3/15/2018 (Insured; FSA)......................................... 1,000,000 1,139,090
6%, 8/1/2018 (Insured; FSA)............................................. 4,900,000 4,977,959
New York City Housing Development Corp., General Housing
5.80%, 5/1/2002 (Insured; AMBAC)........................................ 400,000 404,260
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue:
6.20%, 6/15/2021 (Insured; AMBAC)....................................... 2,000,000 2,120,440
5.50%, 6/15/2023 (Insured; MBIA)........................................ 7,000,000 7,013,580
New York City Transit Authority, Transit Facility Revenue
(Livingston Plaza Project) 6%, 1/1/2021 (Insured; FSA).................. 5,300,000 5,410,293
New York State 7.10%, 3/1/2020 (Insured; AMBAC) (Prerefunded 3/1/2000) (a).. 1,650,000 1,859,006
New York State Dormitory Authority, Revenue:
(City University) 6.30%, 7/1/2024 (Insured; AMBAC)...................... 2,800,000 3,033,912
(Ellis Hospital Mortgage Project) 5.50%, 8/1/2015 (Insured; MBIA)....... 3,920,000 3,934,778
(International House) 7.60%, 7/1/2009 (Insured; FGIC)................... 2,000,000 2,239,800
(New York University) 6%, 7/1/2015 (Insured; FGIC)...................... 1,750,000 1,825,600
(Refunding - Ithaca College) 6.25%, 7/1/2021 (Insured; MBIA)............ 2,000,000 2,120,840
(Refunding - Mount Sinai School of Medicine):
6.75%, 7/1/2009 (Insured; MBIA)....................................... 3,000,000 3,368,970
5%, 7/1/2021 (Insured; MBIA).......................................... 1,000,000 976,750
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
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):
6.375%, 12/1/2027 (Insured; MBIA)................................. $ 5,000,000 $ 5,276,600
6%, 3/15/2028 (Insured; MBIA)..................................... 4,000,000 4,147,000
Pollution Control:
(Central Hudson Gas and Electric)
7.375%, 10/1/2014 (Insured; FGIC)................................. 1,700,000 1,918,059
(New York State Electric and Gas Corporation)
5.95%, 12/1/2027 (Insured; MBIA).................................. 2,000,000 2,061,080
(Refunding - Niagara Mohawk Power Corp.)
6.625%, 10/1/2013 (Insured; FGIC)................................. 4,500,000 4,944,555
New York State Environmental Facility Corp., Water Facilities Revenue:
(Jamaica Water Supply Province) 7.625%, 4/1/2029 (Insured; AMBAC)....... 4,000,000 4,401,760
(Spring Valley Water Co. Inc. Project) 5.65%, 11/1/2023 (Insured; AMBAC) 1,330,000 1,332,367
New York State Housing Finance Agency, Multi-Family Housing Revenue
7.45%, 11/1/2028 (Insured; AMBAC)....................................... 1,980,000 2,116,917
New York State Medical Care Facilities Finance Agency,
Revenue:
(Aurelia Osborn Fox Memorial Hospital) 6.50%, 11/1/2019 (Insured; FSA) 3,000,000 3,255,030
(Hospital and Nursing Home):
6.125%, 2/15/2015 (Insured; MBIA)................................. 4,000,000 4,276,200
7.60%, 2/15/2029 (Insured; MBIA).................................. 2,000,000 2,220,180
(Mental Health Service Facilities Improvement):
6.25%, 8/15/2018 (Insured; AMBAC)................................. 4,820,000 5,110,694
7.375%, 8/15/2019 (Insured; MBIA)................................. 1,345,000 1,500,939
(Montefiore Medical Center) 6%, 2/15/2035 (Insured; AMBAC)............ 5,000,000 5,233,200
(North Shore University Hospital Mortgage Project)
7.20%, 11/1/2020 (Insured; MBIA).................................. 5,750,000 6,525,388
(Sisters of Charity Hospital) 6.625%, 11/1/2018 (Insured; AMBAC)...... 2,000,000 2,186,760
New York State Mortgage Agency, Revenue (Homeownership Mortgage)
6.45%, 10/1/2017 (Insured; MBIA)........................................ 1,000,000 1,050,270
New York State Thruway Authority, General Revenue 6%, 1/1/2025 (Insured; FGIC) 3,750,000 3,952,350
New York State Urban Development Corp., Revenue:
(Correctional Capital Facilities)
5.50%, 1/1/2025 (Insured; MBIA)....................................... 5,000,000 5,022,500
(Correctional Facilities) Refunding
5.25%, 1/1/2018 (Insured; AMBAC)...................................... 5,000,000 4,945,350
Port Authority of New York and New Jersey:
5.875%, 7/15/2018 (Insured; MBIA)....................................... 3,600,000 3,704,148
6.25%, 1/15/2027 (Insured; AMBAC)....................................... 2,000,000 2,107,980
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
Triborough Bridge and Tunnel Authority, Special Obligation Refunding:
6%, 1/1/2015 (Insured; AMBAC)........................................... $ 4,000,000 $ 4,179,400
6.875%, 1/1/2015 (Insured; FGIC)........................................ 3,000,000 3,353,430
6%, 1/1/2019 (Insured; MBIA)............................................ 2,000,000 2,057,740
Yonkers 7.80%, 8/1/2009 (Insured; FGIC)..................................... 2,900,000 3,349,732
______
TOTAL INVESTMENTS (cost $147,840,892)....................................... $160,044,623
=======
</TABLE>
<TABLE>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
BIGI Bond Investors Guaranty Insurance MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company RRR Resources Recovery Revenue
</TABLE>
<TABLE>
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, 1995, 28.7% of the Fund's net assets are insured by
AMBAC and 37.8% are insured by MBIA.
(d) At December 31, 1995, the Fund had $39,948,279 (25.4% of net assets)
invested in securities whose payment of principal and interest is
dependent upon revenues generated from transportation projects.
See notes to financial statements.
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $147,840,892)-see statement..................................... $160,044,623
Interest receivable..................................................... 3,166,072
Prepaid expenses........................................................ 4,862
______
163,215,557
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 111,295
Due to Distributor...................................................... 1,929
Due to Custodian........................................................ 5,716,794
Accrued expenses........................................................ 68,132 5,898,150
______ _____
NET ASSETS ................................................................ $157,317,407
=======
REPRESENTED BY:
Paid-in capital......................................................... $144,931,984
Accumulated undistributed investment income-net......................... 43,336
Accumulated undistributed net realized gain on investments.............. 138,356
Accumulated gross unrealized appreciation on investments................ 12,203,731
______
NET ASSETS at value applicable to 13,469,322 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $157,317,407
=======
NET ASSET VALUE, offering and redemption price per share
($157,317,407 / 13,469,322 shares)...................................... $11.68
=======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 9,708,466
EXPENSES:
Management fee-Note 2(a).............................................. $ 940,247
Shareholder servicing costs-Note 2(b)................................. 471,185
Professional fees..................................................... 52,460
Trustees' fees and expenses-Note 2(c)................................. 36,853
Custodian fees........................................................ 16,810
Prospectus and shareholders' reports-Note 2(b)........................ 15,465
Registration fees..................................................... 6,318
Miscellaneous......................................................... 18,290
______
TOTAL EXPENSES.................................................... 1,557,628
Less-reimbursement of prospectus costs-Note 2(b)...................... 5,356
______
NET EXPENSES...................................................... 1,552,272
______
INVESTMENT INCOME-NET............................................. 8,156,194
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 1,438,863
Net unrealized appreciation on investments.............................. 12,855,137
______
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 14,294,000
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $22,450,194
=======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
________________________________
1994 1995
_______ _______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 9,156,209 $ 8,156,194
Net realized gain (loss) on investments................................. (1,233,401) 1,438,863
Net unrealized appreciation (depreciation) on investments for the year.. (20,566,482) 12,855,137
______ ______
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... (12,643,674) 22,450,194
______ ______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net................................................... (9,132,926) (8,136,141)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 38,170,749 30,674,114
Dividends reinvested.................................................... 6,467,485 5,477,142
Cost of shares redeemed................................................. (69,423,052) (44,843,810)
______ ______
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........ (24,784,818) (8,692,554)
______ ______
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... (46,561,418) 5,621,499
NET ASSETS:
Beginning of year....................................................... 198,257,326 151,695,908
______ ______
End of year (including undistributed investment income-net: $23,283 in 1994
and $43,336 in 1995).................................................. $151,695,908 $157,317,407
======= =======
SHARES SHARES
______ ______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 3,391,665 2,730,812
Shares issued for dividends reinvested.................................. 579,744 484,599
Shares redeemed......................................................... (6,202,246) (3,979,102)
______ ______
TOTAL (DECREASE) IN SHARES OUTSTANDING................................ (2,230,837) (763,691)
======= =======
See notes to financial statements.
</TABLE>
<TABLE>
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: 1991 1992 1993 1994 1995
___ ___ ___ ___ ___
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $10.64 $11.33 $11.60 $12.04 $10.66
___ ___ ___ ___ ___
INVESTMENT OPERATIONS:
Investment income-net........................ .66 .63 .60 .60 .59
Net realized and unrealized gain (loss)
on investments............................. .69 .31 .66 (1.39) 1.02
___ ___ ___ ___ ___
TOTAL FROM INVESTMENT OPERATIONS........... 1.35 .94 1.26 (.79) 1.61
___ ___ ___ ___ ___
DISTRIBUTIONS:
Dividends from investment income-net......... (.66) (.63) (.60) (.59) (.59)
Dividends from net realized gain on investments - (.04) (.22) - -
___ ___ ___ ___ ___
TOTAL DISTRIBUTIONS........................ (.66) (.67) (.82) (.59) (.59)
___ ___ ___ ___ ___
Net asset value, end of year................. $11.33 $11.60 $12.04 $10.66 $11.68
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 13.06% 8.55% 11.08% (6.62%) 15.38%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets ..... .88% .90% .96% .98% .99%
Ratio of net investment income to average
net assets ................................ 6.01% 5.49% 5.01% 5.31% 5.20%
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .17% .11% .02% .01% -
Portfolio Turnover Rate...................... 15.95% 16.12% 19.89% 12.79% 31.13%
Net Assets, end of year (000's Omitted)...... $147,527 $180,326 $198,257 $151,696 $157,317
See notes to financial statements.
</TABLE>
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. Premier Mutual
Fund Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares. The Distributor, located at One Exchange Place, Boston, Massachusetts
02109, is a wholly-owned subsidiary of FDI Distribution Services, Inc., a
provider of mutual fund administration services, which in turn is a
wholly-owned subsidiary of FDI Holdings, Inc., the parent company of which is
Boston Institutional Group, Inc. The Dreyfus Corporation ("Manager") serves
as the Fund's investment adviser. The Manager is a direct subsidiary of
Mellon Bank, N.A.
(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, 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.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 11\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, 1995.
Effective December 1, 1995, 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. Such compensation amounted to $4,498, for the period from
December 1, 1995 through December 31, 1995.
(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 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, or any affiliate
(collectively "Dreyfus") for advertising and marketing relating to the Fund
and for Servicing, at an aggregate 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. During the year
ended December 31, 1995, $397,126 was charged to the Fund pursuant to the
Plan, of which $5,356 was reimbursed by the Manager.
(C) Each trustee 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.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the year ended December 31, 1995
amounted to $47,748,722 and $50,305,334, respectively.
At December 31, 1995, 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, 1995, 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, 1995 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,
1995, 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 and Young LLP signature logo]
New York, New York
February 1, 1996
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, 1995 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).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1995 calendar year
on Form 1099-DIV which will be mailed by January 31, 1996.
[Dreyfus lion "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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 577AR9512
[Dreyfus logo]
New York Insured
Tax Exempt
Bond Fund
Annual Report
December 31, 1995
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 |
| 12/31/95 | 19,595 | 16,277 |
|----------------|-----------------------|---------------------|
*Source: Lehman Brothers
