<PAGE>
Dreyfus
New York Insured
Tax Exempt
Bond Fund
Semi-Annual
Report
June 30, 1997
<PAGE>
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 its six-month reporting period ended June 30,
1997. Your Fund produced a total return, including bond price changes and
interest income, of 1.78%.* The Fund's tax-free distribution rate (annualized)
per share was 4.61%.** (Some income may be subject to the Federal Alternative
Minimum Tax for certain shareholders).
Economic Review
Despite recent moderation in the rate of new job creation, the latest
reported unemployment rate was 5% in June. When the unemployment rate was last
at that level, the inflation rate was heading toward double-digit territory.
Now, inflation appears to be subdued; the Consumer Price Index rose at an annual
rate of just 1.4% for the 12-month period through May. Producer prices have
risen a minuscule 0.6% over the same time. It has been unprecedented for the
economy to have seven years of expansion, low unemployment and low inflation
at the same time.
Ever alert for signs of incipient inflation, the Federal Open Market
Committee, the policy-making arm of the Federal Reserve Board, has raised
interest rates just once in more than two years. That hike came in March 1997
when the Federal Funds rate was increased by one-quarter of a percentage point
to 5.50%. (The Federal Funds rate is the rate of interest that banks charge one
another for overnight loans.) While there have been some signs that wages are
increasing (an area of particular concern to the Federal Reserve), there have
also been indications that the economy may be slowing from its torrid first
quarter pace when it surged at a 5.9% annual rate, the biggest advance since the
fourth quarter of 1987.
Indicating possible moderation in the rate of economic growth, retail sales
were in decline all spring despite record levels of consumer optimism about the
economy. The latest report on retail sales through March, April, and May showed
a decline at an annual rate of 5% over the previous three months. This marked
the first three-month decline since the fall of 1981. Yet, despite their
sluggish spending at checkout counters, consumers' confidence in the economy
continues to climb, heavily influenced by increased job security and low
inflation.
Throughout the current seven-year economic expansion, the pattern of consumer
spending has been stop-and-go, alternating between spurts of spending and
retrenchment. The 5% decline in retail sales for the three months through May
was preceded by a 15% advance over the previous three-month period. On the
production side of the economy, a survey of corporate buyers compiled by the
National Association of Purchasing Management reported that growth in factory
activity eased slightly during June. The much observed supplier-delivery
component of the survey, a measure of how quickly orders are being satisfied and
a possible sign of production bottlenecks, also fell modestly. In further
evidence of a slowing economy during the second quarter, the Commerce Department
recently reported that factory orders fell in May.
Rising incomes, low unemployment and quiescent inflation have all contributed
to a feeling of confidence, as measured by the Conference Board's Index of
Consumer Sentiment, that has been unmatched for 28 years. Many economists feel
that the optimistic consumer sentiment indicators provide a floor to economic
growth and will spur consumer spending later in the year, particularly if the
unemployment rate remains low and job security worries recede further. We are
mindful of the potent role that consumers play in the economy - their spending
accounts for about two-thirds of economic output. So we remain alert to signs of
any strain on productive capacity caused by increases in consumer spending that
might, in turn, lead to another tightening in monetary policy by the Federal
Reserve.
Market Environment
When we last reported to shareholders earlier this year, signals were
pointing to a possible economic slowdown in 1997: however, to the contrary, the
economy surged during the first quarter and interest rates rose. As investors
are well aware, the economic data and interest rate moves have been a mixed
picture over the past six months. Following the Federal Reserve Open Market
Committee's decision to hike short-term interest rates in March, yields all
along the yield curve moved higher. While the yield on the bellwether 30-year
Treasury bond pierced the 7% level nearly four
<PAGE>
months ago, it has been on a straight-line descent since then, falling by
nearly 3/4% from its high. Following a similar course, yields on tax-exempt
bonds also rose and fell during this period but the volatility has been a bit
more constrained versus taxable securities.
Today, yields are continuing to ratchet lower amid benign inflation readings.
However, not all signs point to a continued economic slowdown as evidenced by
accelerating job growth in the labor markets, rising incomes and consumer
confidence. What is perplexing to the financial markets is that this four-month
bond market rally has been sustained without any significant price reversal --
traditionally, a very strong technical signal.
Both the Treasury and municipal bond markets appear to be in good technical
condition. New bond issuance has been moderate in both markets. Foreign and
domestic investors continue to add to their U.S. Treasury Bond holdings, while
individual investors and the casualty insurance companies have lent strong
support to the reduced supply of tax-exempt issues. Apparently, there is still
plenty of cash on the "sidelines"; it is conceivable that should rates continue
to move lower more investors will be drawn into the markets.
Portfolio Overview
The municipal market is currently near the highs of recent trading ranges. In
such an environment ( i.e., falling yields and rising prices ), bonds with the
longest durations, good call structures, and incremental yield have performed
the best. Management recognizes that in such a volatile investment environment
it is necessary to structure a portfolio to perform well in both positive and
negative price environments. ( Bonds bearing such features are referred to as
having positive convexity.) Over the first half of this year we have worked to
structure the portfolio accordingly.
It looks as though the big story for New York this year will be the strong
economic performance of New York City. Tax revenues have far exceeded
projections due to strong Wall Street profits and an improving overall economy.
This fact is evident in the high prices that City credits are currently
commanding in the marketplace. Certainly, the improving local economy also bodes
well for the State and its financial picture. New bond issues from the State and
its subdivisions have been very well received by investors. This has placed New
York bonds in the enviable position of trading at a premium compared to similar
issues from other states.
The economic environment suggests that a cautious approach is still
warranted. Whether or not the Fed will act again to raise rates before this year
ends is open to debate. We continue to act cautiously and believe that the
current portfolio structure will serve your Fund well in what is expected to be
a very dynamic environment.
Very truly yours,
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 17, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the net asset
value per share at the end of the period.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus New York Insured Tax Exempt Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments June 30, 1997 (Unaudited)
Principal
Long-Term Municipal Investments--93.0% Amount Value
- ------------------------------------------------------------------------------- ----------- ------------
<S> <C> <C>
New York--90.1%
Albany County Airport Authority, Airport Revenue
5.30%, 12/15/2015 (Insured; FSA).......................................... $ 2,000,000 $ 1,931,460
Hempstead Town 5%, 2/15/2010 (Insured; AMBAC)................................ 3,375,000 3,323,632
Islip Resource Recovery Agency, RRR 6.125%, 7/1/2013 (Insured; AMBAC)........ 1,425,000 1,492,203
Metropolitan Transportation Authority, Revenue:
Commuter Facility (Grand Central Terminal)
5.70%, 7/1/2024 (Insured; FSA).......................................... 6,500,000 6,529,510
Transit Facility 6.50%, 7/1/2018 (Insured; FGIC).......................... 4,000,000 4,337,200
New York City:
5.30%, 6/1/2011 (Insured; AMBAC).......................................... 5,000,000 4,991,500
5.375%, 6/1/2013 (Insured; AMBAC)......................................... 5,625,000 5,600,925
7.25%, 3/15/2018 (Insured; FSA)........................................... 1,000,000 1,076,820
New York City Educational Construction Fund, Revenue
5.50%, 4/1/2026 (Insured; AMBAC).......................................... 1,320,000 1,296,491
New York City Municipal Water Finance Authority, Water and Sewer System Revenue
6.20%, 6/15/2021 (Insured; AMBAC)......................................... 2,000,000 2,110,980
New York State Dormitory Authority:
LR (Municipal Health Facilities Improvement Program)
5.50%, 5/15/2024 (Insured; FSA)......................................... 2,455,000 2,405,900
Revenue:
(City University):
6.30%, 7/1/2024 (Insured; AMBAC)...................................... 2,800,000 3,003,588
Refunding 5.50%, 7/1/2016 (Insured; AMBAC)............................ 5,000,000 4,985,400
(Ellis Hospital Mortgage Project) 5.60%, 8/1/2025 (Insured; MBIA)....... 4,300,000 4,242,853
(Mental Health Services Facilities Improvement):
5.25%, 2/15/2011 (Insured; AMBAC)..................................... 5,005,000 4,956,702
5.125%, 8/15/2021 (Insured; MBIA)..................................... 5,000,000 4,709,500
(Mount Sinai School of Medicine):
5%, 7/1/2013 (Insured; MBIA).......................................... 2,645,000 2,544,913
Refunding 6.75%, 7/1/2009 (Insured; MBIA)............................. 3,000,000 3,279,330
(Refunding - Ithaca College) 6.25%, 7/1/2021 (Insured; MBIA)............ 2,000,000 2,137,180
(Saint John's University) 5.60%, 7/1/2016 (Insured; MBIA)............... 3,000,000 3,008,550
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 5,280,050
Pollution Control, Refunding (Niagara Mohawk Power Corp.)
6.625%, 10/1/2013 (Insured; FGIC)....................................... 4,500,000 4,875,705
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus New York Insured Tax Exempt Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1997 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ----------------------------------------------------------------------------- -------------- --------------
<S> <C> <C>
New York State Medical Care Facilities Finance Agency,
Revenue:
(Aurelia Osborn Fox Memorial Hospital) 6.50%, 11/1/2019 (Insured; FSA).. $ 3,000,000 $ 3,218,610
(Hospital and Nursing Home)
6.125%, 2/15/2015 (Insured; MBIA)..................................... 4,000,000 4,195,280
(Mental Health Service Facilities Improvement):
6.25%, 8/15/2018 (Insured; AMBAC)..................................... 4,685,000 4,884,113
7.375%, 8/15/2019 (Insured; MBIA) (Prerefunded 8/15/1999) (a)......... 1,100,000 1,192,235
7.375%, 8/15/2019 (Insured; MBIA)..................................... 245,000 262,914
(Sisters of Charity Hospital) 6.625%, 11/1/2018 (Insured; AMBAC)........ 2,000,000 2,155,380
New York State Mortgage Agency, Revenue (Homeownership Mortgage)
6.45%, 10/1/2017 (Insured; MBIA).......................................... 1,000,000 1,071,320
New York State Urban Development Corp., Revenue, Refunding
(Correctional Facilities)
5.50%, 1/1/2014 (Insured; FSA)............................................ 3,000,000 3,067,110
Port Authority of New York and New Jersey:
6.25%, 1/15/2027 (Insured; AMBAC)......................................... 2,000,000 2,066,600
Special Obligation Revenue (JFK International Air Terminal Project)
6.25%, 12/1/2013 (Insured; MBIA)........................................ 5,000,000 5,484,500
Triborough Bridge and Tunnel Authority, Special Obligation Refunding
6%, 1/1/2015 (Insured; AMBAC)............................................. 4,000,000 4,120,200
Western Nassau County Water Authority, Water System Revenue
5.65%, 5/1/2026 (Insured; AMBAC).......................................... 5,815,000 5,816,803
U.S. Related--2.9%
Puerto Rico Electric Power Authority, Power Revenue
5.40%, 7/1/2013 (Insured; MBIA)........................................... 3,700,000 3,718,500
-------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $114,578,664)....................................................... $119,373,957
=============
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus New York Insured Tax Exempt Bond Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1997 (Unaudited)
Principal
Short-Term Municipal Investments--7.0% Amount Value
- ------------------------------------------------------------------------------- ---------- -----------
<S> <C> <C>
New York:
New York City, VRDN 4.15%(Insured; MBIA)(LOC; National Westminster Bank)(b,c). $ 1,000,000 $ 1,000,000
New York City Municipal Water Finance Authority, Water and Sewer System Revenue,
VRDN:
4.15% (Insured; FGIC) (c)................................................ 2,000,000 2,000,000
4.15% (Insured; FGIC) (c)................................................ 6,000,000 6,000,000
------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $9,000,000).......................................................... $ 9,000,000
============
TOTAL INVESTMENTS--100.0%
(cost $123,578,664)........................................................ $128,373,957
============
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus New York Insured Tax Exempt Bond Fund
- -------------------------------------------------------------------------------
Summary of Abbreviations
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FSA Financial Security Assurance Insurance Corporation
LOC Letter of Credit RRR Resources Recovery Revenue
VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -------------------------------------------------------------------------------
Fitch (d) or Moody's or Standard & Poor's Percentage of Value
- ------ -------- ----------------- -------------------
<S> <C> <C> <C>
AAA Aaa AAA 93.0%
F1 MIG1/P1 SP1/A1 7.0
-------
100.0%
=======
<FN>
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) Secured by letters of credit.
(c) Securities payable on demand. The interest rate, which is subject to change,
is based upon bank prime rates or an index of market interest rates.
(d) Fitch currently provides creditworthiness information for a limited number
of investments.
(e) At June 30, 1997, 37.6% of the Fund's net assets are insured by AMBAC and
31.2% are insured by MBIA.
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
<PAGE>
Dreyfus New York Insured Tax Exempt Bond Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities June 30, 1997 (Unaudited)
Cost Value
------------- -------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $123,578,664 $128,373,957
Cash................................................... 1,187,890
Receivable for investment securities sold.............. 3,308,992
Interest receivable.................................... 2,246,122
Prepaid expenses....................................... 6,675
------------
135,123,636
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.......... 96,682
Due to Distributor..................................... 2,600
Accrued expenses....................................... 34,370
------------
133,652
------------
NET ASSETS ................................................................... $134,989,984
============
REPRESENTED BY: Paid-in capital........................................ $130,009,923
Accumulated net realized gain (loss) on investments.... 184,768
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4(b)............................ 4,795,293
------------
NET ASSETS ................................................................... $134,989,984
============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized). 12,130,679
NET ASSET VALUE, offering and redemption price per share--Note 3(d)............ $11.13
======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
<PAGE>
Dreyfus New York Insured Tax Exempt Bond Fund
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended June 30, 1997 (Unaudited)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income........................................ $3,881,686
EXPENSES: Management fee--Note 3(a)............................... $ 413,056
Shareholder servicing costs--Note 3(b).................. 206,050
Professional fees...................................... 29,249
Trustees' fees and expenses--Note 3(c)................. 19,618
Custodian fees......................................... 7,395
Registration fees...................................... 6,019
Prospectus and shareholders' reports--Note 3(b)........ 3,962
Loan commitment fees--Note 2............................ 884
Miscellaneous.......................................... 2,581
-----------
Total Expenses................................... 688,814
Less--reimbursement of prospectus costs--Note 3(b)...... (1,334)
-----------
Net Expenses..................................... 687,480
----------
INVESTMENT INCOME--NET.......................................................... 3,194,206
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments................ $ 192,027
Net realized gain (loss) on financial futures.......... (293,625)
-----------
Net Realized Gain (Loss)......................... (101,598)
Net unrealized appreciation (depreciation)on investments (773,424)
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... (875,022)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $2,319,184
==========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
<PAGE>
Dreyfus New York Insured Tax Exempt Bond Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 3,194,206 $ 7,072,916
Net realized gain (loss) on investments.............................. (101,598) 2,411,129
Net unrealized appreciation (depreciation) on investments............ (773,424) (6,635,014)
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations.... 2,319,184 2,849,031
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................ (3,194,206) (7,116,252)
Net realized gain on investments..................................... -- (2,263,119)
------------ ------------
Total Dividends.................................................... (3,194,206) (9,379,371)
------------ ------------
BENEFICIALINTEREST TRANSACTIONS:
Net proceeds from shares sold........................................ 6,933,795 48,175,210
Dividends reinvested................................................. 2,089,484 6,350,869
Cost of shares redeemed.............................................. (15,995,063) (62,476,356)
------------ ------------
Increase (Decrease) in Net Assets from Beneficial Interest
Transactions (6,971,784) (7,950,277)
------------ ------------
Total Increase (Decrease) in Net Assets........................ (7,846,806) (14,480,617)
NET ASSETS:
Beginning of Period.................................................. 142,836,790 157,317,407
------------ ------------
End of Period........................................................ $134,989,984 $142,836,790
============ ============
</TABLE>
<TABLE>
<CAPTION>
Shares Shares
------------- -------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 625,649 4,290,801
Shares issued for dividends reinvested............................... 189,260 564,570
Shares redeemed...................................................... (1,447,464) (5,561,459)
---------- -----------
Net Increase (Decrease) in Shares Outstanding.................... (632,555) (706,088)
========== ===========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
<PAGE>
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 period indicated. This information
has been derived from the Fund's financial statements.
Six Months Ended Year Ended December 31,
June 30, 1997 ------------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
----------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.19 $11.68 $10.66 $12.04 $11.60 $11.33
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net............... .25 .54 .59 .60 .60 .63
Net realized and unrealized gain (loss)
on investments.................... (.06) (.31) 1.02 (1.39) .66 .31
------ ------ ------ ------ ------ ------
Total from Investment Operations. .19 .23 1.61 (.79) 1.26 .94
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net (.25) (.54) (.59) (.59) (.60) (.63)
Dividends from net realized gain
on investments.................... -- (.18) -- -- (.22) (.04)
------ ------ ------ ------ ------ ------
Total Distributions................. (.25) (.72) (.59) (.59) (.82) (.67)
------ ------ ------ ------ ------ ------
Net asset value, end of period...... $11.13 $11.19 $11.68 $10.66 $12.04 $11.60
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN................ 3.59%(1) 2.12% 15.38% (6.62%) 11.08% 8.55%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.00%(1) 1.02% .99% .98% .96% .90%
Ratio of net investment income
to average net assets............. 4.64%(1) 4.78% 5.20% 5.31% 5.01% 5.49%
Decrease reflected in above expense ratios
due to undertakings by the Manager -- -- -- .01% .02% .11%
Portfolio Turnover Rate............. 31.79%(2) 84.24% 31.13% 12.79% 19.89% 16.12%
Net Assets, end of period (000's Omitted) $134,990 $142,837 $157,317 $151,696 $198,257 $180,326
<FN>
- -------------------
(1) Annualized.
(2) Not annualized.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus New York Insured Tax Exempt Bond Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus New York Insured Tax Exempt Bond Fund (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-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, New York
State and New York City income taxes as is consistent with the preservation of
capital. The Dreyfus Corporation ("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 load.
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 (excluding options and
financial futures on municipal and U.S. treasury securities) 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. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(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.
<PAGE>
Dreyfus New York Insured Tax Exempt Bond Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal Revenue
Code, and to make distributions of income and net realized capital gain
sufficient to relieve it from substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("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. For the period ended June 30,
1997, the Fund did not borrow under the Facility.
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 fiscal year the aggregate expenses, exclusive of taxes,
brokerage, commitment fees, interest on borrowings and extraordinary expenses,
exceed 1 1/2% of the value of the Fund's average daily net assets, the Fund may
deduct from payments to be made to the Manager, or the Manager will bear such
excess expense. There was no expense reimbursement for the period ended June 30,
1997.
(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, or any affiliate (collectively, "
Dreyfus") for advertising and marketing relating to the Fund and Servicing, at
an aggregate annual rate of .25 of 1% of the value of the Fund's average daily
net assets. Both the Distributor and Dreyfus may pay 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 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 value of the Fund's average daily net assets for any full
year. During the period ended June 30, 1997, $173,441 was charged to the Fund
pursuant to the Plan, of which $1,334 was reimbursed by the Manager.
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 $25,082 during the period ended June 30, 1997.
(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 and the Trustee Emeritus receives 50% of such compensation.
<PAGE>
Dreyfus New York Insured Tax Exempt Bond Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited)
(d) A 1% redemption fee is charged on certain redemptions of Fund shares
(including redemptions through the use of the Fund Exchanges service) where the
shares being redeemed were issued subsequent to a specified effective date and
the redemption or exchange occurs less than fifteen days following the date of
issuance.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended June 30, 1997 amounted
to $39,745,735 and $64,718,055, respectively.
The Fund may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. The Fund is exposed to
market risk as a result of changes in the value of the underlying financial
instruments. Investments in financial futures require the Fund to "mark to
market" on a daily basis, which reflects the change in the market value of the
contract at the close of each day's trading. Typically, variation margin
payments are received or made to reflect daily unrealized gains or losses. When
the contracts are closed, the Fund recognizes a realized gain or loss. These
investments require initial margin deposits with a custodian, which consists of
cash or cash equivalents, up to approximately 10% of the contract amount. The
amount of these deposits is determined by the exchange or Board of Trade on
which the contract is traded and is subject to change. At June 30, 1997, there
were no financial futures contracts outstanding.
(b) At June 30, 1997, accumulated net unrealized appreciation on
investments was $4,795,293, consisting of $4,823,769 gross
unrealized appreciation and $28,476 gross unrealized depreciation.
At June 30, 1997, 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).
<PAGE>
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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 577SA976
