Dreyfus
New York Insured
Tax Exempt Bond Fund
SEMIANNUAL REPORT
June 30, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
14 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
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The Fund
Dreyfus New York Insured
Tax Exempt Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus New York Insured
Tax Exempt Bond Fund, covering the six-month period from January 1, 1999 through
June 30, 1999. Inside, you'll find valuable information about how the fund was
managed during the period, including a discussion with the fund's portfolio
manager, Richard Moynihan.
During the past six months, the U.S. economy has entered its eighth year of
expansion in an environment characterized by low inflation and high levels of
consumer spending. These conditions have helped support the credit quality of
many states and municipalities.
Tax-exempt fixed-income securities provided especially attractive results
relative to taxable U.S. Treasury securities. While prices of U.S. Treasury
securities declined significantly, a lack of new issuance relative to robust
investor demand supported most municipal bond prices, which declined more
modestly. As a result, the differences in valuations between taxable and
tax-exempt bonds narrowed to more historically normal levels.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus New York Insured Tax Exempt Bond Fund
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
July 15, 1999
<PAGE 2>
DISCUSSION OF FUND PERFORMANCE
Richard Moynihan, Portfolio Manager
How did Dreyfus New York Insured Tax Exempt Bond Fund perform during the period
The fund produced a -2.02% total return(1) over the six-month period ended June
30, 1999 compared to a total return of -1.45% for the average of the Lipper New
York Insured Municipal Debt Funds category.(2)
We attribute the fund's performance to being weighted in long-term bonds in a
rising interest rate environment. Returns were also affected by our security
selection strategy, which focused on high-quality, insured municipal bonds
issued by New York state, its municipalities and authorities. Although insured
securities generally tend to carry lower yields than bonds with lower credit
ratings, insured securities are generally more liquid, making them easier to
sell and thus giving the fund more flexibility to react in a weak market.
What is the fund's investment approach?
Our goal is to seek a high level of federal and New York state tax-exempt income
from a diversified portfolio of insured municipal bonds. We also seek
competitive total returns.
To achieve these objectives, we employ two primary strategies. First, we attempt
to add value by searching the New York marketplace for those insured tax-exempt
bonds that provide the highest income yields. This search involves a thorough
analysis of individual securities' characteristics -- such as maturity, yield,
price and redemption features -- under prevailing and anticipated market
conditions. When we find securities that we believe are more attractive than
existing holdings, we typically use them to enhance the portfolio.
Second, we tactically manage the portfolio's average duration -- a measure of
sensitivity to changes in interest rates -- in anticipation of temporary
interest-rate and supply-and-demand changes. If we expect The Fun
<PAGE 3>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
interest rates to rise or the supply of newly issued bonds to increase, for
example, we may reduce the portfolio's average duration by making cash available
for the purchase of higher-yielding securities. Conversely, if we expect
interest rates to decline or the demand for municipal bonds to surge, we may
increase the portfolio's average duration to maintain current yields for as long
as practical and take advantage of opportunities for capital appreciation. At
other times, we try to maintain a "neutral" average duration between seven and
nine years.
What other factors influenced the fund's performance?
Because of strong economic conditions throughout the country, New York state and
its municipalities have had less need to borrow. As a result, fewer tax-exempt
bonds were issued than in the same period one year ago. This lack of supply
intensified in the second quarter of 1999 when New York state once again failed
to pass its annual budget on time. Without a budget in place, the state and its
municipalities and authorities were limited in issuing new debt. Yet, demand
from investors seeking to minimize their income tax liabilities remained high.
This imbalance between supply and demand helped support New York municipal bond
prices.
In addition, the fund was affected by rising interest rates over the past six
months. Economies in Japan and Southeast Asia appear to have begun to recover,
and the continuing growth of the U.S. economy has been stronger than most
analysts expected. This economic news raised concerns among some fixed-income
investors that inflation pressures might re-emerge. In fact, the Federal Reserve
Board increased short-term interest rates on June 30 in an attempt to forestall
a reacceleration of inflation. Because the market anticipated this change in
monetary policy before it was announced, higher short-term rates had little
immediate effect on longer-term tax-exempt yields.
<PAGE 4>
What is the fund's current strategy?
We have continued to search for the most attractive values in New York's insured
municipal bond market. We have found such values, in our opinion, in bonds from
a diverse array of issuers. This includes the state's insured general obligation
bonds as well as insured securities issued by New York City, which has
traditionally offered higher yields than most other New York issuers. However, a
strong economy and prudent fiscal management have improved New York City's
financial condition, and new issues have not been priced as attractively as they
once were.
In anticipation of higher interest rates, we adopted a more defensive posture.
We maintained the fund's average duration toward the short end of its range. As
of June 30, the fund's average duration was 7.72 years. In our view, this should
give us the flexibility we need to capture higher yields as they become
available.
July 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL
TAXES FOR NON-NEW YORK RESIDENTS, AND SOME INCOME MAY BE SUBJECT TO THE FEDERAL
ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN INVESTORS. CAPITAL GAINS, IF ANY, ARE
FULLY TAXABLE.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
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<TABLE>
STATEMENT OF INVESTMENTS
June 30, 1999 (Unaudited)
Principal
LONG-TERM MUNICIPAL INVESTMENTS--98.3% Amount ($) Value ($)
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<S> <C> <C>
NEW YORK--94.9%
Development Authority of the North Country,
Solid Waste Management System Revenue
6%, 5/15/2015 (Insured; FSA) 2,260,000 2,440,868
Islip Resource Recovery Agency, RRR
6.125%, 7/1/2013 (Insured; AMBAC) 1,425,000 1,500,254
Metropolitan Transportation Authority,
Transit Facilities Revenue:
6.50%, 7/1/2018 (Insured; FGIC)
(Prerefunded 7/1/2002) 4,000,000 (a) 4,334,120
4.75%, 7/1/2026 (Insured: FGIC) 2,000,000 1,796,760
Nassau County Industrial Development Agency,
Civic Facility Revenue (Hofstra University Project)
4.75%, 7/1/2028 (Insured; MBIA) 2,000,000 1,790,440
New York City:
6%, 8/1/2007 (Insured; FGIC) 2,000,000 2,148,780
5.25%, 3/15/2015 (Insured; MBIA) 1,500,000 1,484,850
7.25%, 3/15/2018 (Insured; FSA) 1,000,000 1,039,230
N.ew York City Municipal Water Finance Authority,
Water and Sewer System Revenue
6.20%, 6/15/2021 (Insured; AMBAC)
(Prerefunded 6/15/2002) 2,000,000 (a) 2,137,540
New York State Dormitory Authority:
LR
(Municipal Health Facilities Improvement Program)
4.75%, 1/15/2029 (Insured; FSA) 2,000,000 1,783,460
Revenue:
(City University):
5.35%, 7/1/2009 (Insured; FGIC) 5,000,000 5,150,300
6.30%, 7/1/2024 (Insured; AMBAC)
(Prerefunded 7/1/2004) 2,800,000 (a) 3,070,340
(Ithaca College) 6.25%, 7/1/2021 (Insured; MBIA)
(Prerefunded 7/1/2001) 1,000,000 (a) 1,062,070
(Mount Sinai School of Medicine):
5.15%, 7/1/2024 (Insured; MBIA) 5,765,000 5,626,467
6.75%, 7/1/2009 (Insured; MBIA) 3,000,000 3,204,870
(New York and Presbyterian Hospital)
4.75%, 8/1/2027 (Insured; AMBAC) 2,000,000 1,793,160
(St. Johns University)
4.75%, 7/1/2028 (Insured; MBIA) 5,250,000 4,692,923
<PAGE 6>
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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NEW YORK (CONTINUED)
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 5,230,950
Pollution Control (Niagara Mohawk Power Corp.)
6.625%, 10/1/2013 (Insured; FGIC) 4,500,000 4,789,710
New York State Local Government Assistance Corp.
5.50%, 4/1/2017 (Insured; FSA) 5,000,000 5,145,700
New York State Medical Care Facilities Finance Agency,
Revenue:
(Hospital and Nursing Home)
6.125%, 2/15/2015 (Insured; MBIA) 4,000,000 4,228,880
(Mental Health Service Facilities Improvement):
6.25%, 8/15/2018 (Insured; AMBAC)
(Prerefunded 2/15/2002) 4,340,000 (a) 4,637,637
6.25%, 8/15/2018 (Insured; AMBAC) 345,000 364,806
(Sisters of Charity Hospital)
6.625%, 11/1/2018 (Insured; AMBAC) 2,000,000 2,130,200
New York State Mortgage Agency, Revenue
(Homeownership Mortgage)
6.45%, 10/1/2017 (Insured; MBIA) 1,000,000 1,073,160
New York State Urban Development Corp., Revenue
(Correctional Facilities):
4.75%, 1/1/2028 (Insured; AMBAC) 3,000,000 2,687,940
5.50%, 1/1/2014 (Insured; FSA) 3,000,000 3,101,700
Port Authority of New York and New Jersey:
5.80%, 11/1/2010 (Insured; FGIC) 7,160,000 7,457,570
4.25%, 10/1/2026 (Insured; FGIC) 2,000,000 1,664,920
6.25%, 1/15/2027 (Insured; AMBAC) 2,000,000 2,092,880
4.375%, 10/1/2033 (Insured; FGIC) 2,000,000 1,666,560
Special Obligation Revenue
(JFK International Air Terminal Project)
6.25%, 12/1/2013 (Insured; MBIA) 5,000,000 5,519,700
Triborough Bridge and Tunnel Authority:
General Purpose Revenues
6.125%, 1/1/2021 (Insured; CMAC) 2,000,000 2,214,340
Special Obligation
6%, 1/1/2015 (Insured; AMBAC) (Prerefunded 1/1/2002) 3,260,000 (a) 3,447,287
Yonkers 5.125%, 8/1/2009 (Insured; AMBAC) 3,125,000 3,147,438
The Fund
<PAGE 7>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
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U.S. RELATED--3.4%
Puerto Rico Electric Power Authority, Power Revenue
5.40%, 7/1/2013 (Insured; MBIA) 3,700,000 3,791,648
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TOTAL INVESTMENTS (cost $107,635,487) 98.3% 109,449,458
CASH AND RECEIVABLES (NET) 1.7% 1,894,176
NET ASSETS 100.0% 111,343,634
<PAGE 8>
Summary of Abbreviations
AMBAC American Municipal Bond Assurance LR Lease Revenue
Corporation MBIA Municipal Bond Investors
CMAC Capital Market Assurance Corporation Assurance Insurance
FGIC Financial Guaranty Insurance Company Corporation
FSA Financial Security Assurance RRR Resources Recovery Revenue
Summary of Combined Ratings
Fitch or Moody's or Standard & Poor's Value (%)
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AAA Aaa AAA 100.0
(A) BONDS WHICH ARE PREREFUNDED ARE COLLATERALIZED BY U.S. GOVERNMENT
SECURITIES WHICH ARE HELD IN ESCROW AND ARE USED TO PAY PRINCIPAL AND INTEREST
ON THE MUNICIPAL ISSUE AND TO RETIRE THE BONDS IN FULL AT THE EARLIEST REFUNDING
DATE.
(B) AT JUNE 30, 1999, 26.1% OF THE FUND'S NET ASSETS ARE INSURED BY FGIC AND
33.9% ARE INSURED BY MBIA.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE 9>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 107,635,487 109,449,458
Interest receivable 2,221,726
Prepaid expenses 1,080
111,672,264
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 85,304
Due to Distributor 1,974
Cash overdraft due to Custodian 180,310
Accrued expenses 61,042
328,630
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NET ASSETS ($) 111,343,634
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 108,803,432
Accumulated net realized gain (loss) on investments 726,231
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 1,813,971
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NET ASSETS ($) 111,343,634
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized)
10,248,244
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 10.86
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE 10>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1999 (Unaudited)
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INVESTMENT INCOME ($):
INTEREST INCOME 3,156,177
EXPENSES:
Management fee--Note 3(a) 356,583
Shareholder servicing costs--Note 3(b) 179,072
Professional fees 34,851
Trustees' fees and expenses--Note 3(c) 20,446
Registration fees 11,778
Prospectus and shareholders' reports--Note 3(b) 11,550
Custodian fees 6,045
Loan commitment fees--Note 2 291
Miscellaneous 11,587
TOTAL EXPENSES 632,203
Less--reimbursement of prospectus costs--Note 3(b) (2,511)
NET EXPENSES 629,692
INVESTMENT INCOME--NET 2,526,485
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-NOTE 4 ($):
Net realized gain (loss) on investments 417,349
Net unrealized appreciation (depreciation) on investments (5,296,894)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (4,879,545)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (2,353,060)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE 11>
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998
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OPERATIONS ($):
Investment income--net 2,526,485 5,415,102
Net realized gain (loss) on investments 417,349 1,511,337
Net unrealized appreciation (depreciation)
on investments (5,296,894) (230,294)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (2,353,060) 6,696,145
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DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (2,526,485) (5,415,102)
Net realized gain on investments - (1,743,200)
TOTAL DIVIDENDS (2,526,485) (7,158,302)
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BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 6,423,694 8,985,439
Dividends reinvested 1,656,147 4,818,825
Cost of shares redeemed (13,981,026) (27,040,030)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (5,901,185) (13,235,766)
TOTAL INCREASE (DECREASE) IN NET ASSETS (10,780,730) (13,697,923)
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NET ASSETS ($):
Beginning of Period 122,124,364 135,822,287
END OF PERIOD 111,343,634 122,124,364
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CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 572,171 789,248
Shares issued for dividends reinvested 148,174 424,000
Shares redeemed (1,256,478) (2,375,683)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (536,133) (1,162,435)
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE 12>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased
(or decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Six Months Ended
June 30, 1999 Year Ended December 31,
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(Unaudited) 1998 1997 1996 1995 1994
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<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 11.32 11.37 11.19 11.68 10.66 12.04
Investment Operations:
Investment income--net .24 .49 .50 .54 .59 .60
Net realized and unrealized
gain (loss) on investments (.46) .11 .30 (.31) 1.02 1.39)
Total from Investment Operations (.22) .60 .80 .23 1.61 (.79)
Distributions:
Dividends from investment
income--net (.24) (.49) (.50) (.54) (.59) (.59)
Dividends from net realized gain
on investments -- (.16) (.12) (.18) -- --
Total Distributions (.24) (.65) (.62) (.72) (.59) (.59)
Net asset value, end of period 10.86 11.32 11.37 11.19 11.68 10.66
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TOTAL RETURN (%) (4.07)(a) 5.38 7.41 2.12 15.38 (6.62)
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets 1.06(a) 1.02 .99 1.02 .99 .98
Ratio of net investment income
to average net assets 4.25(a) 4.28 4.47 4.78 5.20 5.31
Decrease reflected in above
expense ratios due to
undertakings by the Manager (.00)(a,b) -- -- -- -- .01
Portfolio Turnover Rate 8.54(c) 44.69 116.40 84.24 31.13 12.79
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Net Assets, end of period
($ x 1,000) 111,344 122,124 135,822 142,837 157,317 151,696
(A) ANNUALIZED.
(B) AMOUNT REPRESENTS LESS THAN .01%.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE 13>
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, as amended (the "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 (the "Manager") serves as the
fund' s investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the fund's shares, which are sold to the public without a sales charge.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (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.
<PAGE 14>
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custody
agreement, the fund received net earnings credits of $1,777 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 of 1986, as amended (the
" 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 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 (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is The Fund
<PAGE 15>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
charged to the fund at rates based on prevailing market rates in effect at the
time of borrowings. During the period ended June 30, 1999, 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 of the fund, 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, 1999,
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 ne
<PAGE 16>
assets for any full year. During the period ended June 30, 1999, $151,087 was
charged to the fund pursuant to the Plan, of which $2,511 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, 1999, the fund was charged $20,388 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 shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended June 30, 1999, amounted to
$10,030,960 and $15,611,676, respectively.
At June 30, 1999, accumulated net unrealized appreciation on investments was
$1,813,971, consisting of $3,581,888 gross unrealized appreciation and
$1,767,917 gross unrealized depreciation.
At June 30, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
<PAGE 17>
For More Information
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to
[email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999, Dreyfus Service Corporation 577SA996
