PREMIER INSURED MUNICIPAL BOND FUND, New York Series
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the New York Series of
the Premier Insured Municipal Bond Fund for the fiscal year ended July 31,
1995. The Federal Reserve Board relaxed its policy of monetary restraint in
July of 1995 when it eased the rate on Fed funds on July 6th. This reduction
ended the upward pressure on short-term rates prevailing since the beginning
of the reporting period. Despite the monetary restraint that existed,
long-term rates began their decline early in the year. The Fed's policy of
restraint was based on concerns about inflation given the strong economic
news then prevailing. But in July these same reports indicated a significant
weakening trend in the economy. The July decline in the Fed Funds rate
signaled that economic growth issues outweighed, for a time, Fed fears of a
resurgence of inflation.
For its annual reporting period ended July 31, 1995, your Series earned a
total return, including bond price changes and interest income, of 5.53% for
Class A shares and 5.08% for Class B shares.* Income dividends, exempt from
Federal, New York State and New York City personal income taxes, of
approximately $.708 per share for Class A shares and approximately $.645 per
share for Class B shares were paid to shareholders.** This is equivalent to a
tax-free distribution rate per share of 5.30% for Class A shares and 5.05%
for Class B shares+, comfortably in excess of the inflation rate of 2.76% as
measured by the Consumer Price Index for the same period.++
THE ECONOMY
Economic reports about lagging home and auto sales and new home
construction showed a weakening economy from earlier this year. Furthermore,
rising business inventories (a frequent harbinger of a business slowdown) and
weakening retail sales lent additional credibility to the case for easier
credit conditions. By midyear jobless claims were also on the rise, a
particularly politically sensitive indicator, made even more so by the coming
Presidential election year.
A word about inflation: despite strong economic growth at the beginning
of the reporting period, inflation remained in check. We believe a
continuation of this moderating trend of prices appears likely, particularly
if the economy remains sluggish. This could be good news for bond investors
since lower inflation often results in falling interest rates. Declining
interest rates, often a corollary to slow business conditions, cause bond
prices to rise. Although we strive to maintain a high level of current tax
exempt income for the Series, we are also concerned with credit quality.
Accordingly, we are mindful of the potential erosion in bond quality if the
economy slips into a recession. We follow a policy that stresses strong
credit quality in the portfolio and seeks to protect bond values and income
streams. As you know, we manage portfolios with a long-term perspective, ever
aware that market conditions can change rapidly.
MARKET ENVIRONMENT
The municipal bond market, buffeted by six interest rate hikes by the
Federal Reserve Board in 1994, recovered strongly this year. The release of
weaker than expected December sales figures tumbled rates and this decline
persisted throughout the remainder of the reporting period. The recent rate
cut confirmed what declining long-term interest rates had indicated all year
- - that business conditions were weaker than monetary policy makers thought.
If economic conditions remain sluggish, further Fed easing is likely. We
believe this indicates a rather favorable outlook for bond markets in
general. We are certainly pleased and encouraged by the good performance of
late in the bond market and by the Series; however, we are wary that this
bond market strength may be counting too much on continued low inflation.
Thus, while we remain fully invested in this improving market, we are alert
to the stimulating effects of easing monetary policy and are watchful for any
signs of rekindling inflation. Our primary task -
to maximize current income exempt from Federal, New York State and New York
City personal income taxes to the extent consistent with the preservation of
capital - continues to underscore our portfolio management decisions.
The threat of tax reform appears to be limiting the enthusiasm for
tax-exempt securities. Since April, when serious flat tax and consumption tax
proposals began to surface, the municipal rally has lagged, resulting in an
increase in municipal yields as a percentage of comparable taxable bond
yields. Today, long-term municipal bonds are yielding nearly 90% of U.S.
Treasuries, which is a greater yield ratio than existed prior to the onset of
talk regarding tax reform. While it could be years before an actual change in
the law is adopted, the market's reaction so early in the proposal cycle
suggests to us that the ultimate legislation, if any, may have a less radical
effect on the market than feared.
THE PORTFOLIO
The portfolio began the reporting period with an aggressive structure,
emphasizing long-maturity, discount, and full coupon bonds, while striving to
remain fully invested. As we discussed in our last letter, 1994 proved to be
a weak period for fixed-income investments and your Series suffered as the
market retreated. By early 1995, however, the market began to rally and the
Series' more aggressive structure responded accordingly, with rapid price
improvement.
Our strategy during this period was greatly affected by the dramatic
decline in municipal bond issuance throughout the nation during 1994 and
1995. This substantially limited our ability to alter the portfolio's
structure as market conditions changed during the reporting period.
Going forward, we expect issuance restraints to ease somewhat and permit
greater portfolio flexibility. In addition, inflation should remain under
control even as the economy slowly improves. This should result in modestly
rising interest rates through the end of the year, and we will be attempting
to lessen the portfolio's volatility profile within the constraints of supply
and the goal of maximizing tax-exempt income to our shareholders. Our primary
tasks - to protect principal, maintain liquidity and distribute a high level
of current tax-exempt income to you - continue to underscore our portfolio
management decisions.
Included in this report is a series of detailed statements about your
Series' holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the
Series and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
August 18, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders. Income may be subject to some state and local taxes for
non-New York State residents.
+ Distribution rate per share is based upon dividends per share paid from
net investment income during the period, divided by the maximum offering
price per share at the end of the period in the case of Class A shares, or
the net asset value per share at the end of the period in the case of Class B
shares.
++ Source: Lipper Analytical Services, Inc. The Consumer Price Index is
published by the Bureau of Labor Statistics and is a widely accepted measure
of inflation in the United States.
PREMIER INSURED MUNICIPAL BOND FUND, New York Series JULY 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER INSURED
MUNICIPAL BOND FUND, NEW YORK SERIES CLASS A SHARES AND CLASS B SHARES AND
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
Dollars
$11,012
Lehman Brothers
Municipal Bond Index*
$10,598
Premier Insured Municipal Bond Fund, New York
Series (Class B Shares)
$10,456
Premier Insured Municipal Bond Fund, New York
Series (Class A Shares)
*Source: Lehman Brothers
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
CLASS A CLASS B
______________________________ ______________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
PERIODS ENDED 7/31/95 Sales Charge Sales Charge (4.5%) PERIODS ENDED 7/31/95 Redemption Redemption*
____________ ________ _________ ____________ ______ __________
<S> <C> <C> <C> <C> <C>
1 Year 5.53% 0.80% 1 Year 5.08% 2.08%
From Inception (5/5/94) 7.59 3.67 From Inception (5/5/94) 7.18 4.79
</TABLE>
Past performance is not predictive of future performance. Share price and
investment return fluctuate and share price may be more or less than original
cost upon redemption.
The above graph compares a $10,000 investment made in each of the Class A
shares and Class B shares of Premier Insured Municipal Bond Fund, New York
Series on 5/5/94 (Inception Date) to a $10,000 investment made in the Lehman
Brothers Municipal Bond Index on that date. For comparative purposes, the
value of the Index on 4/30/94 is used as the beginning value on 5/5/94. All
dividends and capital gain distributions are reinvested.
The Series 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 performance shown in the line graph
takes into account the maximum initial sales charge on Class A shares and the
maximum contingent deferred sales charge on Class B shares and all other
applicable fees and expenses. Unlike the Series, the Lehman Brothers
Municipal Bond Index is an unmanaged total return performance benchmark for
the long-term, investment grade, geographically unrestricted tax exempt bond
market, calculated by using municipal bonds selected to be representative of
the market; however, the bonds in the Index generally are not insured. The
Index does not take into account charges, fees and other expenses. Also,
unlike the Series which principally limits investments to New York municipal
obligations, the Index is not state-specific. Further information relating to
Series performance, including expense reimbursements, if applicable, is
contained in the Condensed Financial Information section of the Prospectus
and elsewhere in this report. Neither the Series shares nor the market value
of its portfolio securities are insured.
* Maximum contingent deferred sales charge for Class B shares is 3% and is
reduced to 0% after five years.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
STATEMENT OF INVESTMENTS JULY 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
______ _______
<S> <C> <C>
NEW YORK-96.9%
Buffalo Municipal Water Finance Authority,
Water System Revenue 5%, 7/01/2025 (Insured; FGIC)...................... $ 750,000 $ 648,135
Erie County 5.50%, 6/15/2025 (Insured; FGIC)................................ 500,000 468,045
Metropolitan Transportation Authority,
Transit Facility Revenue 6.375%, 7/1/2020 (Insured; MBIA)............... 750,000 772,845
New York City Health and Hospital Corp., Revenue, Refunding:
5.625%, 2/15/2013 (Insured; AMBAC)...................................... 1,000,000 963,820
5.75%, 2/15/2022 (Insured; AMBAC)....................................... 200,000 192,626
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue:
6%, 6/15/2019 (Insured; FGIC)........................................... 200,000 201,352
6.20%, 6/15/2021 (Insured; AMBAC)....................................... 600,000 613,272
New York City Transit Authority, Transit Facility Revenue
(Livingston Plaza Project) 6%, 1/1/2021 (Insured; FSA).................. 200,000 198,954
New York State, COP (City University - John Jay College)
5.50%, 8/15/2009 (Insured; AMBAC)....................................... 200,000 200,430
New York State Dormitory Authority, Revenue:
(City University System - Third Resolution) 6.30%, 7/1/2024 (Insured; AMBAC) 200,000 204,902
(Refunding - Fordham University) 5.75%, 7/1/2015 (Insured; FGIC)........ 200,000 194,900
(Refunding - Skidmore College) 5.375%, 7/1/2023 (Insured; FSA).......... 200,000 184,168
(Rochester University) 5.90%, 7/1/2017 (Insured; MBIA).................. 950,000 940,719
New York State Energy Research and Development Authority, Revenue:
Facilities (Refunding - Con Edison Co. of New York Inc. Project)
5.25%, 8/15/2020 (Insured; MBIA)...................................... 200,000 180,206
Gas Facilities (Brooklyn Union Gas) 5.60%, 6/1/2025 (Insured; MBIA)..... 200,000 183,756
Pollution Control, Refunding:
(New York State Electric and Gas Corp.) 6.05%, 4/1/2034 (Insured; MBIA) 500,000 500,335
(Rochester Gas and Electric Project) 6.50%, 5/15/2032 (Insured; MBIA). 400,000 408,804
New York State Housing Finance Agency, MFMR
6.35%, 8/15/2023 (Insured; AMBAC)....................................... 500,000 506,710
New York State Medical Care Facilities Finance Agency, Revenue:
(Hospital and Nursing Home) 6.125%, 2/15/2015 (Insured; MBIA)........... 400,000 404,436
(Long Term Health Care) 6.50%, 11/1/2015 (Insured; CGIC)................ 200,000 207,138
(Mental Health Service Facilities Improvement)
5.80%, 2/15/2019 (Insured; CGIC)...................................... 400,000 386,548
(Refunding - Saint Mary's Hospital Project) 6.20%, 11/1/2014 (Insured; AMBAC) 200,000 202,242
Niagara Falls Bridge Commission, Toll Revenue, Refunding
5.25%, 10/1/2021 (Insured; FGIC)........................................ 200,000 181,526
Suffolk County Water Authority, Waterworks Revenue
5%, 6/1/2012 (Insured; MBIA)............................................ 200,000 183,740
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1995
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
______ _______
NEW YORK (CONTINUED)
Triboro Bridge and Tunnel Authority, Special Obligation Refunding
6%, 1/1/2019 (Insured; MBIA)............................................ $ 1,000,000 $ 998,690
U.S. RELATED-3.1%
Commonwealth of Puerto Rico, Refunding
5.375%, 7/01/2022 (Insured; MBIA)....................................... 350,000 327,578
---------
TOTAL INVESTMENTS (cost $10,358,322)........................................ $10,455,877
===========
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
CGIC Capital Guaranty Insurance Corporation Insurance Corporation
FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (A) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- ------- ----------------- -------------------
<S> <C> <C> <C>
AAA Aaa AAA 100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Fitch currently provides creditworthiness information for a limited
number of investments.
(b) At July 31, 1995, 25.3% of the series' net assets are insured by
AMBAC and 43.0% are insured by MBIA.
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $10,358,322)-see statement...................................... $10,455,877
Cash.................................................................... 782,528
Interest receivable..................................................... 144,080
Receivable for shares of Beneficial Interest subscribed................. 41,431
Prepaid expenses........................................................ 14,369
Due from The Dreyfus Corporation........................................ 3,058
-------
11,441,343
LIABILITIES:
Due to Distributor...................................................... $ 5,132
Accrued expenses and other liabilities.................................. 33,800 38,932
------- --------
NET ASSETS.................................................................. $11,402,411
=========
REPRESENTED BY:
Paid-in capital......................................................... 11,317,746
Accumulated net realized (loss) on investments.......................... (12,890)
Accumulated net unrealized appreciation on investments-Note 3........... 97,555
-------
NET ASSETS at value......................................................... $11,402,411
=========
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 375,629
=========
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 517,832
=========
NET ASSET VALUE per share:
Class A Shares
($4,790,734 / 375,629 shares)......................................... $12.75
=====
Class B Shares
($6,611,677 / 517,832 shares)......................................... $12.77
=====
See notes to financial statements.
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
STATEMENT OF OPERATIONS YEAR ENDED JULY 31, 1995
INVESTMENT INCOME:
INTEREST INCOME......................................................... $400,649
EXPENSES:
Management fee-Note 2(a).............................................. $ 38,887
Shareholder servicing costs-Note 2(c)................................. 32,924
Distribution fees (Class B shares)-Note 2(b).......................... 20,096
Registration fees..................................................... 13,625
Auditing fees......................................................... 8,168
Prospectus and shareholders' reports.................................. 2,978
Organization expenses................................................. 2,620
Legal fees............................................................ 1,205
Custodian fees........................................................ 1,076
Trustees' fees and expenses-Note 2(d)................................. 689
Miscellaneous......................................................... 4,614
------
126,882
Less-expense reimbursement from Manager due to
undertakings-Note 2(a)............................................ 99,971
------
TOTAL EXPENSES.................................................. 26,911
-------
INVESTMENT INCOME-NET........................................... 373,738
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (12,890)
Net unrealized appreciation on investments.............................. 76,318
------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 63,428
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $437,166
=======
See notes to financial statements.
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JULY 31,
________________________
1994(1) 1995
_______ ______
OPERATIONS:
Investment income-net................................................... $ 27,373 $ 373,738
Net realized (loss) on investments...................................... - (12,890)
Net unrealized appreciation on investments for the year................. 21,237 76,318
_______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 48,610 437,166
_______ ______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares........................................................ (13,922) (172,061)
Class B shares........................................................ (13,451) (201,677)
_______ ______
TOTAL DIVIDENDS................................................... (27,373) (373,738)
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 2,104,443 3,665,511
Class B shares........................................................ 2,247,963 5,533,055
Dividends reinvested:
Class A shares........................................................ 8,502 98,623
Class B shares........................................................ 10,790 118,605
Cost of shares redeemed:
Class A shares........................................................ (70,000) (1,027,887)
Class B shares........................................................ (70,000) (1,301,859)
_______ ______
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS...... 4,231,698 7,086,048
_______ ______
TOTAL INCREASE IN NET ASSETS.................................... 4,252,935 7,149,476
NET ASSETS:
Beginning of year....................................................... _ 4,252,935
_______ ______
End of year............................................................. $ 4,252,935 $11,402,411
======== =======
</TABLE>
<TABLE>
<CAPTION>
SHARES
________________________________________________
CLASS A CLASS B
________________ ________________
YEAR ENDED JULY 31, YEAR ENDED JULY 31,
________________ ________________
1994(1) 1995 1994(1) 1995
______ _______ _______ _______
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 165,298 292,256 176,308 441,378
Shares issued for dividends reinvested. 669 7,927 849 9,489
Shares redeemed........................ (5,356) (85,165) (5,356) (104,836)
______ _______ _______ _______
NET INCREASE IN SHARES OUTSTANDING. 160,611 215,018 171,801 346,031
====== ======= ======= =======
(1) From May 6, 1994 (commencement of operations) to July 31, 1994.
See notes to financial statements.
</TABLE>
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
__________________ __________________
YEAR ENDED JULY 31, YEAR ENDED JULY 31,
___________________ ___________________
PER SHARE DATA: 1994(1) 1995 1994(1) 1995
____ ____ ____ ____
<S> <C> <C> <C> <C>
Net asset value, beginning of year...................... $12.50 $12.79 $12.50 $12.80
____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net................................... .18 .71 .16 .64
Net realized and unrealized gain (loss) on investments.. .29 (.04) .30 (.03)
____ ____ ____ ____
TOTAL FROM INVESTMENT OPERATIONS...................... .47 .67 .46 .61
____ ____ ____ ____
DISTRIBUTIONS;
Dividends from investment income-net.................... (.18) (.71) (.16) (.64)
____ ____ ____ ____
Net asset value, end of year............................ $12.79 $12.75 $12.80 $12.77
===== ===== ====== =====
TOTAL INVESTMENT RETURN (2)................................. 3.76%(3) 5.53% 3.72%(3) 5.08%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. - .09% .50%(4) .60%
Ratio of net investment income to average net assets.... 5.28%(4) 5.64% 4.87%(4) 5.02%
Decrease reflected in above expense ratios due to undertakings
by the Manager (limited to the expense limitation provision
of the management agreement)................................ 2.50%(4) 1.45% 2.50%(4) 1.39%
Portfolio Turnover Rate................................. - 2.76% - 2.76%
Net Assets, end of year (000's Omitted)................. $2,054 $4,791 $2,199 $6,611
(1) From May 6, 1994 (commencement of operations) to July 31, 1994.
(2) Exclusive of sales load.
(3) Not annualized.
(4) Annualized.
See notes to financial statements.
</TABLE>
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Premier Insured Municipal Bond Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering six series including the New York Series (the "Series"). Dreyfus
Service Corporation, until August 24, 1994, acted as the distributor of the
Fund's shares. Dreyfus Service Corporation is a wholly-owned subsidiary of
The Dreyfus Corporation ("Manager"). Effective August 24, 1994, the Manager
became a direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
The Series offers both Class A and Class B shares. Class A shares are
subject to a sales charge imposed at the time of purchase and Class B shares
are subject to a contingent deferred sales charge imposed at the time of
redemption on redemptions made within five years of purchase. Other
differences between the two Classes include the services offered to and the
expenses borne by each Class and certain voting rights.
(A) PORTFOLIO VALUATION: The Series' investments (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.
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Series 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 Series.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Series to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Series 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 Series not to distribute such
gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Series to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2-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 .55 of 1% of the average
daily value of the Series' net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Series'
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series for any full fiscal year. The most stringent
state expense limitation applicable to the Series presently requires
reimbursement of expenses in any full fiscal year that such expenses
(exclusive of distribution expenses and certain expenses as described above)
exceed 2-1\2% of the first $30 million, 2% of the next $70 million and
1-1\2% of the excess over $100 million of the average value of the Series' net
assets in accordance with California "blue sky" regulations. However, the
Manager has undertaken from August 1, 1994 through September 17, 1995 to
reduce the management fee and reimburse such excess expenses paid by the
Series', to the extent that the Series' aggregate expenses (excludung certain
expenses as described above) exceeded specified annual percentages of the
Series' average daily net assets. The expense reimbursement, pursuant to the
undertakings, amounted to $99,971 for the year ended July 31, 1995.
The Manager has currently undertaken from September 18, 1995 through
September 30, 1995, to reduce the management fees paid by, or reimburse such
excess expenses of the Series, to the extent that the Series' aggregate
annual expenses (excluding 12b-1 distribution plan fees and certain expenses
as described above) exceed an annual rate of 1.25 of 1% of the average daily
value of the Series' net assets.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
Dreyfus Service Corporation retained $2,028 during the year ended July
31, 1995 from commissions earned on sales of the Series' Class A shares.
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(B) On August 3, 1994, the Series' shareholders approved a revised
Distribution Plan with respect to Class B shares only (the
"Class B Distribution Plan") pursuant to Rule 12b-1 under the Act. Pursuant
to the Class B Distribution Plan, effective August 24, 1994, the Fund pays
the Distributor for distributing the Series' Class B shares at an annual rate
of .50 of 1% of the value of the average daily net assets of Class B Shares.
Prior to August 24, 1994, the Distribution Plan ("prior Class B
Distribution Plan") provided that the Series pay Dreyfus Service Corporation
at an annual rate of .50 of 1% of the value of the Series' Class B shares
average daily net assets, for the costs and expenses in connection with
advertising, marketing and distributing the Series' Class B shares. Dreyfus
Service Corporation made payments to one or more Service Agents based on the
value of the Series' Class B shares owned by clients of the Service Agent.
During the year ended July 31, 1995, $19,331 was charged to the Series
pursuant to the Class B Distribution Plan and $765 was charged to the Series
pursuant to the prior Class B Distribution Plan.
(C) Under the Shareholder Services Plan, the Series pays the Distributor,
at an annual rate of .25 of 1% of the value of the average daily net assets
of Class A and Class B shares for servicing shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Series and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. From August 1, 1994 through August 23,
1994, $346 and $383 were charged to the Class A and Class B shares,
respectively, by Dreyfus Service Corporation. From August 24, 1994 through
July 31, 1995, $7,282 and $9,665 were charged to the Class A and Class B
shares, respectively, by the Distributor pursuant to the Shareholder Services
Plan.
(D) Prior to August 24, 1994, certain officers and trustees of the Fund
were "affiliated persons" as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each trustee who is not an "affiliated person"
receives from the Fund an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $16,601,710 and $10,071,400, respectively, for the year ended
July 31, 1995, and consisted entirely of long-term and short-term municipal
investments.
At July 31, 1995, accumulated net unrealized appreciation on investments
was $97,555, consisting of $114,128 gross unrealized appreciation and $16,573
gross unrealized depreciation.
At July 31, 1995, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Premier Insured Municipal Bond
Fund, New York Series (one of the Series constituting the Premier Insured
Municipal Bond Fund) as of July 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditings
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 1995 by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Premier Insured Municipal Bond Fund, New York Series at July 31,
1995, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
September 6, 1995
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Series hereby designates all the
dividends paid from investment income-net during the fiscal year ended to
July 31, 1995 as "exempt-interest dividends" (not subject to regular Federal
and, for individuals who are New York residents, New York State and New York
City personal income taxes).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Series' taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1995 calendar year
on Form 1099-DIV which will be mailed by January 31, 1996.
[Dreyfus lion "d" logo]
PREMIER INSURED MUNICIPAL
BOND FUND, NEW YORK SERIES
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
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 916/382AR957
[Dreyfus logo]
Annual Report
Premier Insured
Municipal Bond Fund
New York Series
July 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
_______________________________________________________________
| | | | |
| | LEHMAN | PREMIER INSURED | PREMIER INSURED |
| PERIOD | BROTHERS |MUNICIPAL BOND FUND,|MUNICIPAL BOND FUND,|
| | MUNICIPAL | NEW YORK SERIES | NEW YORK SERIES |
| |BOND INDEX *| (CLASS A SHARES) | (CLASS B SHARES) |
|--------|------------|--------------------|--------------------|
| 5/5/94 | 10,000 | 9,549 | 10,000 |
|7/31/94 | 10,209 | 9,908 | 10,372 |
|10/31/94| 9,915 | 9,352 | 9,786 |
|1/31/95 | 10,234 | 9,801 | 10,242 |
|4/30/95 | 10,665 | 10,154 | 10,588 |
|7/31/95 | 11,012 | 10,456 | 10,598 |
|__________________________________________|____________________|
*Source: Lehman Brothers
