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 six-month reporting period ended June 30, 1998.
Your Fund produced a total return, including share price changes and dividend
income generated, of 1.98%,* and an annualized tax-free distribution rate per
share of 4.32%.**
Economic Review
In recent testimony to Congress, Federal Reserve Board Chairman Alan Greenspan
proclaimed the economy to be "as impressive as any I have witnessed." Indeed,
the performance of the economy has been tremendous, with solid, noninflationary
economic growth and a robust rate of new job creation. Accordingly, the
unemployment rate hovers near its 28-year low. Not surprisingly, consumers brim
with confidence: new home sales were recently at record levels, and retail sales
have surged since January. The enthusiastic spending of consumers has, so far,
offset the adverse effects of the economic problems in Asia. In fact, the
financial crisis in the Far East has proved a boon to consumers, since lower
import prices have further subdued domestic price pressures and helped keep
interest rates low. Remarkably, despite the strengthening economy since the
beginning of this year, inflation has waned further. With inflation under
control and the economy just beginning to experience a reduction in foreign
demand, the Federal Reserve Board has been reluctant to raise interest rates for
fear of further roiling Asian financial markets. The last increase in short-term
rates came in March 1997 when the Federal Reserve Board Open Market Committee
(the policy-making arm of The Federal Reserve) hiked the target rate for Federal
Funds by one quarter of a percent to 5.5%.
Even with the booming job market, wage gains have had little inflationary
effect, since business spending in productivity-enhancing capital equipment has
been strong throughout the economic expansion. The one soft spot in the job
market has been in manufacturing: industrial production has slowed -- a clear
sign that Asian economic woes are being felt here -- and inventories of domestic
manufacturers have risen due to the reduction in foreign demand. Many analysts
expect that the growing trade deficit will retard second-quarter economic growth
and possibly serve as a drag over the foreseeable future. This reduction in
foreign demand could further moderate the rate of domestic production and
consequently ease the demand for labor, thus lessening inflationary pressure
resulting from wage increases. Cheaper imports have also weakened the pricing
environment for U.S. manufacturers and, in consequence, acted as an additional
curb to inflation. All this has been part of what Chairman Greenspan called our
economy' s "virtuous cycle" where even so-called crises have proven economically
beneficial. As a further example, the economic upheavals in Asia and Russia have
caused nervous foreign investors to seek refuge in the U.S. bond market, causing
a demand surge that has helped maintain our low interest rate environment. Yet
we, along with Chairman Greenspan, are skeptical that our economy has somehow
moved "beyond history," and we share his vigilance regarding signs of
inflationary imbalances.
Market Environment
The market environment for bonds has been supportive. Since our last report to
shareholders, yields on long-term, high-grade tax-exempt bonds have been almost
unchanged, whereas U.S. Treasury bond yields have fallen by over one-quarter of
a percent. Certainly, it has been the uncertain impact of the spreading Asian
financial crisis that has kept the Fed from pushing rates higher despite strong
domestic economic data. Spurred by this benign interest rate environment, the
issuance of new municipal securities surged during the period, as a near record
$146 billion of debt came to market.
We believe that it is still too early to draw any conclusions regarding how
much the expanding Asian crisis will impact the U.S. economy. Until a clearer
picture emerges from Asia and Russia, we believe investors will continue to find
fixed-income investments attractive. The still strong and expanding economy
would normally be a cause for concern to inflation watchers. However, the
general belief is that the Fed will refrain from taking any interest rate
actions that could exacerbate the problems in these troubled countries. While
the most recent economic and employment data has been indicative of a still
robust economy, inflation remains quiescent.
The fixed-income markets have now weathered the period of seasonal price
weakness that results from large debt issuance. Traditionally, as summer wanes,
the pressure from too much new-issue supply begins to abate. Given this fact and
the reasons cited above, we believe that the current environment supports an
outlook for steady monetary policy and well-anchored interest rates. As long as
inflation growth remains low, we don't anticipate the Fed reacting to potential
strong employment and economic data by raising rates. Instead, we believe that
the events in Asia, Russia and other emerging countries will be more
influential.
Portfolio Overview
As discussed above, municipal bond prices have experienced little change
during the past six months. Because of this decreased volatility, income
generated from the Fund' s portfolio of tax-exempt bonds has been the primary
factor in performance determination. Interestingly, despite the general decline
in taxable bond interest rates, tax-exempts have not kept pace. Mindful that
interest rates have fallen precipitously in recent years, we continue with our
management approach. We continue to strive to generate a competitive tax-exempt
yield while maintaining a neutral portfolio posture toward the direction of
interest rates. The Fund's duration measure is being maintained at approximately
seven years, which we believe to be market neutral.
The New York investor was clearly the beneficiary of the large volume of new
issuance over the past six months. The most significant of these issues was the
$3 billion loan for the Long Island Power Authority. The success of this issue
(the largest tax-exempt deal in history) underscores the underlying demand for
municipal bonds. Aiding the overall stature of New York debt is the improvement
in both the State's and New York City's economies, resulting in credit rating
upgrades for both. This has translated into lower interest costs on new debt
issuance.
Looking forward, our focus will continue to be on owning the optimal
securities meeting our investment criteria. The municipal market has not made
any significant moves in recent weeks. It is likely that this condition could
persist going forward until a clearer picture of the Asian impact emerges. In
the meantime, we continue to mine for those investment opportunities that meet
our investment criteria and will add incremental yield and performance to the
Fund.
Very truly yours,
[Richard J. Moynihan, signature logo]
Director, Municipal Portfolio Management
The Dreyfus Corporation
July 20, 1998
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid.
Income may be subject to state and local income taxes for non-New York
residents.
**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. Some income may be subject to the Federal
Alternative Minimum Tax (AMT) for certain shareholders.
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
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STATEMENT OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--97.6% Amount Value
- ------------------------------------------------------- _____________ ____________
New York--92.3%
Development Authority of the North Country,
<S> <C> <C>
Solid Waste Management System Revenue, Refunding 6%, 5/15/2015 (Insured; FSA) $ 2,260,000 $ 2,540,263
Islip Resource Recovery Agency, RRR 6.125%, 7/1/2013 (Insured; AMBAC) 1,425,000 1,548,576
Metropolitan Transportation Authority,
Transit Facilities Revenue:
6.50%, 7/1/2018 (Insured; FGIC) (Prerefunded 7/1/2002) (a) 4,000,000 4,432,400
4.75%, 7/1/2026 (Insured; FGIC) (b) 3,000,000 2,825,220
Nassau County:
General Improvement 5.10%, 11/1/2014 (Insured; AMBAC) 3,955,000 3,980,787
Refunding 5.50%, 7/1/2006 (Insured; FGIC) 1,500,000 1,610,820
New York City:
6%, 8/1/2007 (Insured; FGIC) 2,000,000 2,222,420
5.375%, 6/1/2013 (Insured; AMBAC) 3,825,000 3,965,607
7.25%, 3/15/2018 (Insured; FSA) 1,000,000 1,068,120
New York City Municipal Water Finance Authority, Water and Sewer System Revenue
6.20%, 6/15/2021 (Insured; AMBAC) (Prerefunded 6/15/2002) (a) 2,000,000 2,184,060
New York State Dormitory Authority, Revenue:
(City University):
5.35%, 7/1/2009 (Insured; FGIC) 5,000,000 5,326,750
6.30%, 7/1/2024 (Insured; AMBAC) 2,800,000 3,110,128
(Ithaca College) Refunding 6.25%, 7/1/2021 (Insured; MBIA) (Prerefunded 7/1/2001) (a) 2,000,000 2,164,920
(Mental Health Services Facilities Improvement)
5.125%, 8/15/2021 (Insured; MBIA) 2,700,000 2,670,975
(Mount Sinai School of Medicine):
5.15%, 7/1/2024 (Insured; MBIA) 5,765,000 5,915,524
Refunding 6.75%, 7/1/2009 (Insured; MBIA) 3,000,000 3,282,750
(New York and Presbyterian Hospital) Refunding 4.75%, 8/1/2027 (Insured; AMBAC) 3,000,000 2,809,230
(University of Rochester) Refunding 5%, 7/1/2027 (Insured; MBIA) 2,000,000 1,950,660
(Vassar Brothers Hospital) 5.25%, 7/1/2017 (Insured; FSA) 1,500,000 1,509,660
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 5,345,800
Pollution Control, Refunding (Niagara Mohawk Power Corp.)
6.625%, 10/1/2013 (Insured; FGIC) 4,500,000 4,883,805
New York State Medical Care Facilities Finance Agency,
Revenue:
(Aurelia Osborn Fox Memorial Hospital) 6.50%, 11/1/2019 (Insured; FSA) 3,000,000 3,241,260
(Hospital and Nursing Home) 6.125%, 2/15/2015 (Insured; MBIA) 4,000,000 4,328,600
(Mental Health Service Facilities Improvement):
6.25%, 8/15/2018 (Insured; AMBAC) 4,685,000 5,045,698
7.375%, 8/15/2019 (Insured; MBIA) (Prerefunded 8/15/1999) (a) 1,100,000 1,165,813
(Sisters of Charity Hospital) 6.625%, 11/1/2018 (Insured; AMBAC) 2,000,000 2,168,520
New York State Mortgage Agency, Revenue (Homeownership Mortgage)
6.45%, 10/1/2017 (Insured; MBIA) 1,000,000 1,085,260
</TABLE>
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
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STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ ____________
New York (continued)
New York State Thruway Authority (Highway And Bridge Trust Fund)
<S> <C> <C>
5%, 4/1/2018 (Insured; FGIC) $ 3,325,000 $ 3,265,383
New York State Urban Development Corp., Revenue, Refunding
(Correctional Facilities) 5.50%, 1/1/2014 (Insured; FSA) 3,000,000 3,217,560
Port Authority of New York and New Jersey:
5.80%, 11/1/2010 (Insured; FGIC) 7,160,000 7,671,439
6.25%, 1/15/2027 (Insured; AMBAC) 2,000,000 2,127,400
Special Obligation Revenue (JFK International Air Terminal Project)
6.25%, 12/1/2013 (Insured; MBIA) 5,000,000 5,741,900
Triborough Bridge and Tunnel Authority:
General Purpose Revenues 6.125%, 1/1/2021 (Insured; CMAC) 2,000,000 2,310,500
Special Obligation Refunding 6%, 1/1/2015 (Insured; AMBAC) 4,000,000 4,195,320
Yonkers 5.125%, 8/1/2009 (Insured; AMBAC) 3,125,000 3,242,031
U.S. Related--5.3%
Guam, Government Limited Obligation Revenue, Refunding
(Infrastructure Improvement) 5%, 11/1/2017 (Insured; AMBAC) 2,725,000 2,719,795
Puerto Rico Electic Power Authority, Power Revenue
5.40%, 7/1/2013 (Insured; MBIA) 3,700,000 3,876,120
____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $114,191,278) $120,751,074
============
Short-Term Municipal Investment--2.4%
- -------------------------------------------------------
New York City Municipal Water Finance Authority, Water and Sewer System Revenue,
VRDN
3.75% (Insured; FGIC) (c) (cost $3,000,000) $ 3,000,000 $ 3,000,000
=============
TOTAL INVESTMENTS--100.0%
(cost $117,191,278) $123,751,074
=============
</TABLE>
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
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Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
CMAC Capital Market Assurance Corporation Insurance Corporation
FGIC Financial Guaranty Insurance Company RRR Resources Recovery Reveune
FSA Financial Security Assurnace VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch (d) or Moody's or Standard & Poor's Percentage of Value
_______ ________ ___________________ ______________________
AAA Aaa AAA 97.6%
F1 MIG1/P1 SP1/A1 2.4
_______
100.0%
=======
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) Purchased on a delayed-delivery basis.
(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, 1998, 29.7% of the Fund's net assets are insured by AMBAC,
28.2% are insured by FGIC and 30% are insured by MBIA.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
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STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1998 (UNAUDITED)
Cost Value
_____________ ____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $117,191,278 $123,751,074
Cash 1,412,703
Interest receivable 2,221,283
Receivable for investment securities sold 706,045
Prepaid expenses 17,011
____________
128,108,116
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 89,144
Due to Distributor 2,246
Payable for investment securities purchased 2,847,685
Accrued expenses 44,258
____________
2,983,333
____________
NET ASSETS $125,124,783
============
REPRESENTED BY: Paid-in capital $117,444,134
Accumulated net realized gain (loss) on investments 1,120,853
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 6,559,796
____________
NET ASSETS $125,124,783
============
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICAL INTEREST AUTHORIZED) 11,025,385
NET ASSET VALUE, offering and redemption price per share--Note 3(d) $11.35
======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
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STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income $3,418,222
EXPENSES: Management fee--Note 3(a) $ 384,580
Shareholder servicing costs--Note 3(b) 194,336
Professional fees 25,636
Trustees' fees and expenses--Note 3(c) 17,689
Prospectus and shareholders' reports 6,587
Custodian fees 6,572
Registration fees 6,462
Loan commitment fees--Note 2 845
Miscellaneous 8,483
__________
Total Expenses 651,190
Less--reimbursement of prospectus costs--Note 3(b) (483)
__________
Net Expenses 650,707
__________
INVESTMENT INCOME--NET 2,767,515
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments $ 580,108
Net unrealized appreciation (depreciation) on investments (781,363)
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (201,255)
__________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,566,260
==========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997
_____________ __________________
OPERATIONS:
<S> <C> <C>
Investment income--net $ 2,767,515 $ 6,137,142
Net realized gain (loss) on investments 580,108 1,738,375
Net unrealized appreciation (depreciation) on investments (781,363) 1,772,442
____________ ____________
Net Increase (Decrease) in Net Assets Resulting from Operations 2,566,260 9,647,959
____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net (2,767,515) (6,137,142)
Net realized gain on investments --- (1,483,996)
____________ ____________
Total Dividends (2,767,515) (7,621,138)
____________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold 4,560,009 11,403,371
Dividends reinvested 1,807,805 5,088,496
Cost of shares redeemed (16,864,063) (25,533,191)
____________ ____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (10,496,249) (9,041,324)
____________ ____________
Total Increase (Decrease) in Net Assets (10,697,504) (7,014,503)
NET ASSETS:
Beginning of Period 135,822,287 142,836,790
____________ ____________
End of Period $125,124,783 $135,822,287
============ ============
Shares Shares
____________ ____________
CAPITAL SHARE TRANSACTIONS:
Shares sold 400,484 1,022,421
Shares issued for dividends reinvested 159,363 454,542
Shares redeemed (1,481,274) (2,293,385)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding (921,427) (816,422)
============= =============
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 period indicated. This information
has been derived from the Fund's financial statements.
Six Months Ended
June 30, 1998 Year Ended December 31,
_________________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.37 $11.19 $11.68 $10.66 $12.04 $11.60
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net .24 .50 .54 .59 .60 .60
Net realized and unrealized gain (loss)
on investments (.02) .30 (.31) 1.02 (1.39) .66
______ ______ ______ ______ ______ ______
Total from Investment Operations .22 .80 .23 1.61 (.79) 1.26
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net (.24) (.50) (.54) (.59) (.59) (.60)
Dividends from net realized gain on investments -- (.12) (.18) -- -- (.22)
______ ______ ______ ______ ______ ______
Total Distributions (.24) (.62) (.72) (.59) (.59) (.82)
______ ______ ______ ______ ______ ______
Net asset value, end of period $11.35 $11.37 $11.19 $11.68 $10.66 $12.04
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 3.99%(1) 7.41% 2.12% 15.38% (6.62%) 11.08%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.02%(1) .99% 1.02% .99% .98% .96%
Ratio of net investment income
to average net assets 4.32%(1) 4.47% 4.78% 5.20% 5.31% 5.01%
Decrease reflected in above expense ratios
due to undertakings by manager -- -- -- -- .01% .02%
Portfolio Turnover Rate 18.92%(2) 116.40% 84.24% 31.13% 12.79%
19.89%
Net Assets, end of period (000's Omitted) $125,125 $135,822 $142,837 $157,317 $151,696 $198,257
- -----------------------------
(1) Annualized.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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. Under the terms of the custodian
agreement, the Fund received net earnings credit of $3,688 during the period
ended June 30, 1998 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
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 (UNAUDITED) (CONTINUED)
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. During the period ended June
30, 1998, 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 of the Fund, exclusive of
taxes, brokerage, commitment fees, interest on borrowings and extraordinary
expenses, exceed 11_2% of the value of the Fund's average daily net assets, the
Fund may deduct from payments to be made to the Manager, or the Manager will
bear such excess expense. During the period ended June 30, 1998, there was no
expense reimbursement pursuant to the Agreement.
(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, 1998, $160,725 was charged to the Fund
pursuant to the Plan, of which $483 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. During the period
ended June 30, 1998, the Fund was charged $22,987 pursuant to the transfer
agency agreement.
(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.
(D) A 1% redemption fee is charged and retained by the Fund 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:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended June 30, 1998 amounted
to $23,589,089 and $34,532,112, respectively.
At June 30, 1998, accumulated net unrealized appreciation on investments was
$6,559,796, consisting of $6,621,625 gross unrealized appreciation and $61,829
gross unrealized depreciation.
At June 30, 1998, 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).
[reg.tm]
[reg.tm]
DREYFUS NEWYORK 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. 577SA986
New York Insured
Tax Exempt
Bond Fund
Semi-Annual
Report
June 30, 1998
