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.
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 12-month period ended December 31, 1998. Your Fund
produced a total return, including share price changes and dividend income
generated, of 5.38%,* and a tax-free distribution rate per share of 4.24%.**
ECONOMIC REVIEW
During 1998, the main regions of the world had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board to contemplate a rise in interest rates early in the
year, but world economic weakness generated powerful enough disinflationary
forces that the Fed acted instead to ease credit beginning in September. After
many years of subpar economic growth, continental Europe moved into a sustained
economic expansion. The overall European economy benefited as interest rates in
peripheral countries such as Spain and Italy fell, approaching the lower levels
established by Germany, on the eve of currency unification. Unlike the U.S.,
Europe has substantial excess capacity of productive plant and labor. In Asia,
weak economies were pervasive as a result of a financial crisis. The Latin
American economies weakened in turn as the financial stresses spread throughout
that region. On balance, there was a substantial weakening of the world economy
over the course of 1998 moderated mainly by the American consumer's role as
"spender of last resort."
A main influence on the U.S. economy during the year was the foreign financial
crisis and consequent cooling of the world economy. The positive effects hit
first. Actual inflation and expected inflation dropped, causing a decline in
long-term Treasury bond yields and mortgage rates. This caused a boom in
housing. The fall in inflation left more of the growth in consumer income with
which to buy goods and services. Thus, consumers benefited from a combination of
good growth in income after inflation, a strong labor market and increases in
the prices of assets they owned, including bonds, stocks and real estate. In a
sense, 1998 was a year of disinflationary boom in the U.S., as above-trend
economic growth coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis in 1998 from Japan,
emerging market countries and overextended financial institutions. Excess
capacity persists in many worldwide industries after years of high capital
spending followed by the onset of a worldwide weakening in demand. Fortunately,
the U.S. has led the world in making the transition away from the old
manufacturing industries to the new growth industries, such as biotechnology,
software, computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relax.
MARKET COMMENTARY
In calendar year 1998, municipal prices moved upward on a nearly uninterrupted
track from month to month. The environment for fixed-income securities was
constructive generally, and that was reflected in municipal prices. The positive
atmosphere was largely attributable to continued low inflation and low interest
rates contained within a strong U.S. economy. Other factors at work included the
emphatic movement toward lower rates created by the flight-to-quality buying of
U.S. Treasury securities which began with the unfolding global currency and
economic crises. Municipal interest rates trended downward along with
Treasuries' , although not to the same extent. During the year, buyers of
municipals were given comfort from a credit standpoint by the continued strength
of the U.S. economy, whose fiscal benefits extended to the treasuries of states,
cities, and beyond. A good measure of the willingness of investors to buy
municipals, and the ease with which municipalities felt new debt could be sold
even in a lower interest rate environment, can be seen in the near record
breaking volume of new bonds issued during the year. A total of $284 billion in
bonds was issued in 1998, just $8 billion less than in the record-breaking year
of 1993. The issuance of new bonds is not usually evenly dispersed across the
country, and in 1998 it was often difficult to locate desirable paper to
purchase in several states. That sizable new issue calendar, combined with
global events and the effects of a dramatic stock market, made for volatile
trading sessions occasionally. As Treasury prices escalated in the face of
global turmoil, municipal yields vis-a-vis Treasury yields became increasingly
attractive. Historically, when long-term municipals yielded 80% to 85% of the
yields available on Treasuries with comparable maturities, they were considered
to be good values. For much of 1998, the ratio hovered near 100%, and even today
is at 95% .
PORTFOLIO OVERVIEW
Activity in the Fund's portfolio during the past year has been directed toward
structuring the portfolio for improved investment performance within a dynamic
market environment. The Fund sold securities which either had met our price
objectives, or which provided funds to reemploy in what we expected would be
more rewarding situations. In the process, we established more diversity in the
portfolio, which provided enhanced liquidity. Early in the year, we took a
constructive approach with regard to the municipal bond market, and we
maintained that viewpoint through the year. As a result, we concluded that the
portfolio should not be locked into a defensive investment stance, but instead
should hold securities which might appreciate in price with the declines in
interest rates which we thought were likely to develop during the year;
subsequently, we established greater convexity in the portfolio, which
contributed positively to the investment results of 1998. The portfolio's
duration, or sensitivity to changes in interest rates, was also managed
carefully throughout the year so that it would stay in tune with our market
outlook. We hope that you are pleased with the investment performance, shown
above, which resulted from our management of your Fund.
Very truly yours,
[Richard J. Moynihan signature]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
January 15, 1999
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, divided by the net asset value per share at
the end of the period, adjusted for capital gain distributions. Some income may
be subject to the Federal Alternative Minimum Tax (AMT) for certain
shareholders.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND DECEMBER 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS NEW YORK INSURED
TAX EXEMPT BOND FUND AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
Dollars
$22,025
Lehman Brothers Municipal Bond Index*
$19,555
Dreyfus New York Insured Tax Exempt Bond Fund
*Source: Lehman Brothers
<TABLE>
Average Annual Total Returns
- -----------------------------------------------------------------------------
One Year Ended Five Years Ended Ten Years Ended
December 31, 1998 December 31, 1998 December 31, 1998
___________________ ___________________ ___________________
<S> <C> <C> <C>
5.38% 4.49% 6.94%
- ------------------------
Past performance is not predictive of future performance.
</TABLE>
The above graph compares a $10,000 investment made in Dreyfus New York Insured
Tax Exempt Bond Fund on 12/31/88 to a $10,000 investment made in the Lehman
Brothers Municipal Bond Index on that date. All dividends and capital gain
distributions are reinvested.
The Fund invests primarily in New York municipal securities, which are insured
as to the timely payment of principal and interest by recognized insurers of
municipal securities. The Fund's performance shown in the line graph takes into
account fees and expenses. The Lehman Brothers Municipal Bond Index is not
limited to investments principally in New York municipal obligations and does
not take into account charges, fees and other expenses. The Lehman Brothers
Municipal Bond Index, unlike the Fund, is an unmanaged total return performance
benchmark for the long-term, investment-grade, geographically unrestricted tax
exempt bond market, calculated by using municipal bonds selected to be
representative of the municipal market overall; however, the bonds in the Index
generally are not insured. These factors can contribute to the Index potentially
outperforming or underperforming the Fund. Further information relating to Fund
performance, including expense reimbursements, if applicable, is contained in
the Financial Highlights section of the Prospectus and elsewhere in this report
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998
Principal
Long-Term Municipal Investments--98.2% Amount Value
- ------------------------------------------------------- ____________ _____________
<S> <C> <C>
New York--94.9%
Development Authority of the North Country,
Solid Waste Management System Revenue, Refunding 6%, 5/15/2015 (Insured; FSA) . . . . . $ 2,260,000 $ 2,589,146
Islip Resource Recovery Agency, RRR 6.125%, 7/1/2013 (Insured; AMBAC). . . . . . . . . . . 1,425,000 1,565,989
Metropolitan Transportation Authority,
Transit Facilities Revenue:
6.50%, 7/1/2018 (Insured; FGIC) (Prerefunded 7/1/2002)(a) . . . . . . . . . . . . . 4,000,000 4,439,800
4.75%, 7/1/2026 (Insured: FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,909,900
Nassau County Industrial Development Agency,
Civic Facility Revenue, Refunding (Hofstra University Project)
4.75%, 7/1/2028 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,907,000
New York City:
6%, 8/1/2007 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,256,040
5.375%, 6/1/2013 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,825,000 4,050,637
7.25%, 3/15/2018 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,059,680
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 2,188,340
New York State Dormitory Authority
LR:
(Municipal Health Facilities Improvement Program) 4.75%, 1/15/2029 (Insured; FSA) . . 2,000,000 1,900,300
Revenue:
(City University):
5.35%, 7/1/2009 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,444,300
6.30%, 7/1/2024 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . 2,800,000 3,134,320
(Ithaca College) Refunding 6.25%, 7/1/2021 (Insured; MBIA) (Prerefunded 7/1/2001) (a) . . 2,000,000 2,164,480
(Mount Sinai School of Medicine):
5.15%, 7/1/2024 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . 5,765,000 5,982,110
Refunding 6.75%, 7/1/2009 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . 3,000,000 3,272,850
(New York and Presbyterian Hospital) Refunding 4.75%, 8/1/2027 (Insured; AMBAC) . . 3,000,000 2,849,280
(St. John's University) 4.75%, 7/1/2028 (Insured; MBIA) . . . . . . . . . . . . . . 5,250,000 5,005,875
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 5,343,250
Pollution Control, Refunding (Niagara Mohawk Power Corp.)
6.625%, 10/1/2013 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . 4,500,000 4,885,965
New York State Local Government Assistance Corp., Refunding
5.50%, 4/1/2017 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,411,150
New York State Medical Care Facilities Finance Agency,
Revenue:
(Aurelia Osborn Fox Memorial Hospital) 6.50%, 11/1/2019 (Insured; FSA) . . . . . . 1,000,000 1,082,270
(Hospital and Nursing Home) 6.125%, 2/15/2015 (Insured; MBIA) . . . . . . . . . . . 4,000,000 4,390,240
(Mental Health Service Facilities Improvement):
6.25%, 8/15/2018 (Insured; AMBAC) (Prerefunded 2/15/2002) (a) . . . . . . . . . 4,340,000 4,746,094
6.25%, 8/15/2018 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . 345,000 373,362
(Sisters of Charity Hospital) 6.625%, 11/1/2018 (Insured; AMBAC) . . . . . . . . . 2,000,000 2,171,160
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ____________ _____________
New York (continued)
New York State Mortgage Agency, Revenue (Homeownership Mortgage)
6.45%, 10/1/2017 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 $ 1,088,930
New York State Urban Development Corp., Revenue
(Correctional Facilities):
4.75%, 1/1/2028 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,857,170
Refunding 5.50%, 1/1/2014 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,285,120
Port Authority of New York and New Jersey:
5.80%, 11/1/2010 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,160,000 7,777,980
6.25%, 1/15/2027 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,131,360
Special Obligation Revenue (JFK International Air Terminal Project)
6.25%, 12/1/2013 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,857,050
Triborough Bridge and Tunnel Authority:
General Purpose Revenues 6.125%, 1/1/2021 (Insured; CMAC) . . . . . . . . . . . . . . . 2,000,000 2,335,080
Special Obligation Refunding:
6%, 1/1/2015 (Insured; AMBAC) (Prerefunded 1/1/2002) (a) . . . . . . . . . . . . . 3,260,000 3,524,060
6%, 1/1/2015 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 740,000 791,201
4.75%, 1/1/2024 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,870,940
Yonkers 5.125%, 8/1/2009 (Insured; AMBAC). . . . . . . . . . . . . . . . . . . . . . . . . 3,125,000 3,322,281
U.S. Related--3.3%
Puerto Rico Electic Power Authority, Power Revenue
5.40%, 7/1/2013 (Insured; MBIA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,700,000 3,986,898
_____________
TOTAL INVESTMENTS (cost $112,840,743). . . . . . . . . . . . . . . . . . . . . . . . . . . 98.2% $119,951,608
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8% $ 2,172,756
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $122,124,364
_______ _____________
Summary of Abbreviations
- -----------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
CMAC Capital Market Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FSA Financial Security Assurance RRR Resources Recovery Revenue
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
_____ ________ __________________ ____________________
AAA Aaa AAA 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) At December 31, 1998, 27.6% of the Fund's net assets are insured by AMBAC
and 34.3% are insured by MBIA.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998
Cost Value
____________ ____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $112,840,743 $119,951,608
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 168,789
Interest receivable . . . . . . . . . . . . . . . . . . . 2,152,865
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 8,497
_____________
122,281,759
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 94,143
Due to Distributor . . . . . . . . . . . . . . . . . . . 1,822
Accrued expenses . . . . . . . . . . . . . . . . . . . . 61,430
_____________
157,395
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $122,124,364
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $114,704,617
Accumulated net realized gain (loss) on investments . . . 308,882
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 7,110,865
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $122,124,364
_____________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED) . . . . . . 10,784,377
NET ASSET VALUE, offering and redemption price per share--Note 3(d). . . . . . . . . . . . $11.32
_______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $6,700,807
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $ 759,077
Shareholder servicing costs--Note 3(b) . . . . . 383,068
Professional fees . . . . . . . . . . . . . . . . 45,672
Trustees' fees and expenses--Note 3(c) . . . . . 36,620
Registration fees . . . . . . . . . . . . . . . . 17,442
Prospectus and shareholders' reports--Note 3(b) . 15,814
Custodian fees . . . . . . . . . . . . . . . . . 13,091
Loan commitment fees--Note 2 . . . . . . . . . . 1,161
Miscellaneous . . . . . . . . . . . . . . . . . . 15,339
___________
Total Expenses . . . . . . . . . . . . . . . . 1,287,284
Less--reimbursement of prospectus costs--Note 3(b) . (1,579)
___________
Net Expenses . . . . . . . . . . . . . . . . . 1,285,705
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,415,102
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . $1,511,337
Net unrealized appreciation (depreciation)
on investments . . . . . . . . . . . . . . . . (230,294)
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 1,281,043
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $6,696,145
___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
December 31, 1998 December 31, 1997
_________________ _________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,415,102 $ 6,137,142
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 1,511,337 1,738,375
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . (230,294) 1,772,442
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . 6,696,145 9,647,959
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,415,102) (6,137,142)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . (1,743,200) (1,483,996)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,158,302) (7,621,138)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 8,985,439 11,403,371
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,818,825 5,088,496
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27,040,030) (25,533,191)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . (13,235,766) (9,041,324)
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . (13,697,923) (7,014,503)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,822,287 142,836,790
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $122,124,364 $135,822,287
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789,248 1,022,421
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . 424,000 454,542
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,375,683) (2,293,385)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . (1,162,435) (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.
Year Ended December 31,
____________________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $11.37 $11.19 $11.68 $10.66 $12.04
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .49 .50 .54 .59 .60
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . .11 .30 (.31) 1.02 (1.39)
______ ______ ______ ______ ______
TOTAL FROM INVESTMENT OPERATIONS . . . . . . . . .60 .80 .23 1.61 (.79)
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.49) (.50) (.54) (.59) (.59)
Dividends from net realized gain on investments . (.16) (.12) (.18) -- --
______ ______ ______ ______ ______
TOTAL DISTRIBUTIONS . . . . . . . . . . . . . . . (.65) (.62) (.72) (.59) (.59)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $11.32 $11.37 $11.19 $11.68 $10.66
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . 5.38% 7.41% 2.12% 15.38% (6.62%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . 1.02% .99% 1.02% .99% .98%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . 4.28% 4.47% 4.78% 5.20% 5.31%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . -- -- -- -- .01%
Portfolio Turnover Rate . . . . . . . . . . . . 44.69% 116.40% 84.24% 31.13% 12.79%
Net Assets, end of period (000's Omitted) . . . $122,124 $135,822 $142,837 $157,317 $151,696
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
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NOTES TO FINANCIAL STATEMENTS
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 ("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 custody
agreement, the Fund receives net earnings credits based on available cash
balances left on deposit.
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.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
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NOTES TO FINANCIAL STATEMENTS (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
December 31, 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 of the Fund, 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. During the period ended December 31,
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 December 31, 1998, $317,861 was charged to the
Fund pursuant to the Plan, of which $1,579 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 December 31, 1998, the Fund was charged $44,907 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 of their issuance, including redemptions made through the
use of the Fund Exchange privilege.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended December 31, 1998
amounted to $55,057,097 and $68,246,503, respectively.
At December 31, 1998, accumulated net unrealized appreciation on investments
was $7,110,865, consisting of $7,300,059 gross unrealized appreciation and
$189,194 gross unrealized depreciation.
At December 31, 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).
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus New York Insured Tax Exempt Bond Fund, including the statement of
investments, as of December 31, 1998 and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1998 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus New York Insured Tax Exempt Bond Fund at December 31, 1998, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights for
each of the indicated years, in conformity with generally accepted accounting
principles.
New York, New York
February 1, 1999
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended December 31, 1998:
--all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular Federal and, for residents of New York, New
York State and New York City personal income taxes), and
--the Fund hereby designates $.0222 per share as a long-term capital gain
distribution of the $.1099 per share paid on December 8, 1998 and also
designates $.0184 per share as a long-term capital gain distribution of the
$.0510 per share paid on July 7, 1998.
As required by Federal tax law rules, shareholders will receive notification
of their portion of the Fund's taxable ordinary dividends and capital gains
distributions paid for the 1998 calendar year on Form 1099-DIV which will be
mailed by January 31, 1999.
[reg.tm logo]
(reg.tm)
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. 577AR9812
New York Insured
Tax Exempt
Bond Fund
Annual Report
December 31, 1998
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
PERIOD LEHMAN BROTHERS DREYFUS NEW YORK
MUNICIPAL INSURED TAX EXEMPT
BOND INDEX* BOND FUND
12/31/88 10,000 10,000
12/31/89 11,079 10,875
12/31/90 11,886 11,518
12/31/91 13,329 13,023
12/31/92 14,504 14,136
12/31/93 16,286 15,702
12/31/94 15,444 14,662
12/31/95 18,140 16,917
12/31/96 18,943 17,276
12/31/97 20,685 18,556
12/31/98 22,025 19,555
*Source: Lehman Brothers
