LETTER TO SHAREHOLDERS
Dear Shareholder:
For the six-month period ended January 31, 1995, the Premier Insured
Municipal Bond Fund, California Series' Class A shares had a closing net
asset value of $11.17, representing a $.39 (3.37%) per share decline. Income
dividends of approximately $.320 per share were paid, which translates into
an annualized distribution rate per share of 5.42%, based on the January 31,
maximum closing offering price of $11.70.
Similarly, the Series' Class B shares had a net asset value of $11.18,
representing a $.39 (3.37%) per share decline. Income dividends of
approximately $.292 per share were paid, which translates into an annualized
distribution rate per share of 5.18%, based on the January 31 closing net
asset value. As has been the case from the Series' inception, all income
dividends paid from net investment income during the six-month period on both
Class A and Class B shares were exempt from Federal and California State
personal income taxes.*
The municipal bond market turned in a disappointing year in 1994. At the
beginning of the year the outlook appeared promising based on the
expectations of higher taxes, strong demand for municipal securities and the
expected decline in new issue volume. The Federal Reserve Board's
determination to address inflation caused a 250 basis point increase in the
Federal Funds rate that hampered the performance of fixed income securities.
Also, the confusion with new market discount rules and Orange County's woes
combined to derail the optimistic outlook for the municipal market.
After navigating through an unprecedented year in 1994, bonds in both the
primary and secondary markets began a price recovery as we entered the New
Year. Long-term yields declined nearly 50 basis points and provided the
antiseptic the market badly needed. An anemic supply of bonds bolstered
demand and caused a run-up to higher prices that created a degree of euphoria
among fixed income investors. We feel the market may be getting ahead of
itself at this time and we are cautious. The Series' current focus is on
purchasing relative value within the confines of a quality sector. In the
current environment, we think sellers will attempt to capitalize on the lack
of supply to feed their unattractive holdings to the marketplace. The Series'
current strategy is to maintain a position in discount bonds and commit a
portion of the cash reserve to purchase premium bonds. We believe this
slightly defensive attitude will balance the Series until the market more
clearly signals its intentions.
We continue to utilize our best efforts to prudently react in a timely
manner to both the economic and the market factors that could affect your
Series' portfolio. We also transact our daily business with an eye toward
identifying investment opportunities that we think can help your Series
pursue its investment goal. A current Statement of Investments and recent
financial statements have been provided. We greatly appreciate your
investment in the Series and look forward to serving your investment needs in
the future.
Very truly yours,
(logo signature)
Richard J. Moynihan
Director of Municipal Portfolio Management
The Dreyfus Corporation
February 15, 1995
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders. Capital gains, if any, may be subject to
Federal, state and local taxes.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, California Series
STATEMENT OF INVESTMENTS JANUARY 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--76.5% AMOUNT VALUE
------------ ------------
<S> <C> <C>
CALIFORNIA:
Anaheim Public Financing Authority, Electric Utility Revenue (San Juan 4)
5.75%, 10/1/2022 (Insured; FGIC)........................................ $ 100,000 $ 91,913
California Health Facilities Financing Authority, Revenue (Children's
Hospital
San Diego) 6.50%, 7/1/2020 (Insured; MBIA).............................. 200,000 201,268
California Public Works Board, Department of Corrections, LR
(State Prison - Coalinga) 5.375%, 12/1/2019 (Insured; MBIA)............. 100,000 86,437
California Resource and Efficiency Financing Authority, Revenue (First
Resource
Efficiency Program) 6%, 7/1/2017 (Insured; AMBAC)....................... 200,000 192,602
California Statewide Communities Development Authority, COP, Revenue
(Sutter Health Obligated Group) 5.50%, 8/15/2013 (Insured; MBIA)........ 200,000 180,414
Calleguas - Las Virgines Public Financing Authority, Installment Purpose
Revenue
5.125%, 7/1/2021 (Insured; FGIC)........................................ 100,000 82,962
Campbell Unified School District, Series A 6.25%, 8/1/2019 (Insured; MBIA).. 500,000 496,280
Central Coast Water Authority, Regional Facilities Revenue (State Water
Project)
6.60%, 10/1/2022 (Insured; AMBAC)....................................... 200,000 203,548
Central Union High School District, Imperial County
5.50%, 8/1/2017 (Insured; AMBAC)........................................ 195,000 173,585
East Bay Municipal Utility District, Wastewater Treatment Systems Revenue
5.55%, 6/1/2020 (Insured; AMBAC)........................................ 200,000 175,864
Eastern Municipal Water District, Water and Sewer Revenue, COP
5.25%, 7/1/2023 (Insured; FGIC)......................................... 100,000 84,112
Garden Grove Public Financing Authority, Revenue
(Water Services Capital Improvement Program) 5.50%, 12/15/2023 (Insured; FGIC) 100,000 87,384
Glendale Redevelopment Agency, Tax Allocation Revenue, Refunding
(Central Glendale Redevelopment Project) 5.50%, 12/1/2014 (Insured; AMBAC) 205,000 184,627
Los Angeles Community Redevelopment Agency, Tax Allocation
(Bunker Hill Project) 5.625%, 12/1/2023 (Insured; FSA).................. 100,000 87,720
Los Angeles Convention and Exhibition Center Authority, LR, Refunding
5.125%, 8/15/2013 (Insured; MBIA)....................................... 100,000 86,174
Los Angeles Metropolitan Transportation Authority, Sales Tax Revenue,
Refunding
5%, 7/1/2021 (Insured; FGIC)............................................ 200,000 162,782
M-S-R Public Power Agency, Revenue (San Juan Project) 6%, 7/1/2020 (Insured; AMBAC) 200,000 191,942
Monrovia Redevelopment Agency, Public Parking Facilities Revenue, Refunding
5.20%, 4/1/2013 (Insured; AMBAC)........................................ 100,000 86,920
Moulton - Niguel Water District, Refunding (Consolidated Improvement
District)
5.25%, 9/1/2013 (Insured; MBIA)......................................... 100,000 85,420
Northern California, Transmission Revenue, Refunding (Ore Transmission)
5.25%, 5/1/2020 (Insured; MBIA)......................................... 100,000 84,801
Oxnard Financing Authority, Wastewater Revenue, Refunding
5.25%, 6/1/2020 (Insured; FGIC)......................................... 200,000 169,564
Port Oakland, Port Revenue, Series E 6.50%, 11/1/2016 (Insured; MBIA)....... 200,000 200,688
Poway Redevelopment Agency, Tax Allocation, Refunding
(Paguay Redevelopment Project) 5.50%, 12/15/2023 (Insured; FGIC)........ 100,000 87,736
Sacramento Municipal Utility District, Electric Revenue, Refunding
5.25%, 11/15/2020 (Insured; MBIA)....................................... 200,000 169,346
PREMIER INSURED MUNICIPAL BOND FUND, California Series
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------ ------------
CALIFORNIA (CONTINUED):
San Diego, Sewer Revenue 5%, 5/15/2013 (Insured; AMBAC)..................... $ 100,000 $ 84,931
San Francisco City and Community Airports, International Commission Airport
Revenue
6.25%, 5/1/2012 (Insured; FGIC)......................................... 150,000 148,733
San Jose Redevelopment Agency, Tax Allocation, Refunding
(Merged Area Redevelopment Project) 5.25%, 8/1/2016 (Insured; MBIA)..... 200,000 172,710
Santa Ana Community Redevelopment Agency, Tax Allocation, Refunding
(South Main Street Redevelopment) 5.25%, 9/1/2013 (Insured; MBIA)....... 100,000 86,621
Southern Public Power Authority, Transmission Project Revenue, Refunding
5%, 7/1/2022 (Insured; MBIA)............................................ 100,000 81,130
University of California, Revenue, Refunding (Housing Systems)
5.25%, 11/1/2012 (Insured; MBIA)........................................ 200,000 175,402
---------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $4,820,516)..................... $4,403,616
==========
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SHORT-TERM MUNICIPAL INVESTMENTS--23.5%
CALIFORNIA--20.9%
California Statewide Communities Development Authority, COP, Revenue
4% (Insured; FSA)(a).................................................... $ 800,000 $ 800,000
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue,
VRDN 3.50% (Insured; MBIA)(b)........................................... 400,000 400,000
U.S. RELATED--2.6%
Puerto Rico Electric Power Authority, Power Revenue 4.34% (Insured; FSA)(a). 150,000 150,000
------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $1,350,000).................... $1,350,000
==========
TOTAL INVESTMENTS--100.0%
(cost $6,170,516)....................................................... $5,753,616
==========
</TABLE>
SUMMARY OF ABBREVIATIONS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
COP Certificate of Participation LR Lease Revenue
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
VRDN Variable Rate Demand Note
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
AAA Aaa AAA 76.5%
F1+ & F1 MIG1, VMIG1 & SP1 SP1 & A1 23.5
------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security - the interest rate is subject to change
periodically.
(b) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) At January 31, 1995, 43.0% of the Fund's net assets are insured by
MBIA.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, California Series
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $6,170,516)-see statement....................................... $5,753,616
Cash.................................................................... 31,087
Interest receivable..................................................... 76,385
Receivable for shares of Beneficial Interest subscribed................. 20,000
Prepaid expenses........................................................ 44,455
Due from The Dreyfus Corporation........................................ 8,341
------------
5,933,884
LIABILITIES:
Due to Distributor...................................................... $ 2,592
Accrued expenses and other liabilities.................................. 99,928 102,520
----------- -----------
NET ASSETS ................................................................ $5,831,364
============
REPRESENTED BY:
Paid-in capital......................................................... $6,248,264
Accumulated net unrealized (depreciation) on investments-Note 3......... (416,900)
------------
NET ASSETS at value......................................................... $5,831,364
============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 255,939
============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 265,843
============
NET ASSET VALUE per share:
Class A Shares
($2,859,164 / 255,939 shares)......................................... $11.17
======
Class B Shares
($2,972,200 / 265,843 shares)......................................... $11.18
======
See independent accountants' review report and notes to financial statements.
PREMIER INSURED MUNICIPAL BOND FUND, California Series
STATEMENT OF OPERATIONS SIX MONTHS ENDED JANUARY 31, 1995 (UNAUDITED)
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 149,547
EXPENSES:
Management fee-Note 2(a).............................................. $14,475
Shareholder servicing costs-Note 2(c)................................. 11,451
Distribution fees (Class B shares)-Note 2(b).......................... 7,224
Auditing fees......................................................... 7,091
Legal fees............................................................ 6,646
Organization expenses................................................. 5,520
Registration fees..................................................... 3,415
Trustees' fees and expenses-Note 2(d)................................. 1,145
Custodian fees........................................................ 499
Prospectus and shareholders' reports.................................. 313
Miscellaneous......................................................... 3,830
--------
61,609
Less-expense reimbursement from Manager due to
undertaking-Note 2(a)............................................. 54,385
--------
TOTAL EXPENSES.................................................. 7,224
----------
INVESTMENT INCOME--NET...................................................... 142,323
NET UNREALIZED (DEPRECIATION) ON INVESTMENTS................................ (132,619)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 9,704
===========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, California Series
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
JULY 31, JANUARY 31, 1995
1994* (UNAUDITED)
------------ ------------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 126,669 $ 142,323
Net unrealized (depreciation) on investments for the period.......... (284,281) (132,619)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (157,612) 9,704
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net:
Class A shares..................................................... (54,412) (67,046)
Class B shares..................................................... (72,257) (75,277)
------------ ------------
TOTAL DIVIDENDS................................................ (126,669) (142,323)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares..................................................... 2,745,985 1,486,954
Class B shares..................................................... 4,456,351 993,334
Dividends reinvested:
Class A shares..................................................... 31,965 24,487
Class B shares..................................................... 49,861 43,653
Cost of shares redeemed:
Class A shares..................................................... (1,218,479) (74,819)
Class B shares..................................................... (1,750,952) (640,076)
------------ ------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS... 4,314,731 1,833,533
------------ ------------
TOTAL INCREASE IN NET ASSETS................................. 4,030,450 1,700,914
NET ASSETS:
Beginning of period.................................................. 100,000 4,130,450
------------ ------------
End of period........................................................ $4,130,450 $5,831,364
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
SHARES
---------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------- -----------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JULY 31, JANUARY 31, 1995 JULY 31, JANUARY 31, 1995
1994* (UNAUDITED) 1994* (UNAUDITED)
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold...................... 220,251 133,073 362,381 90,278
Shares issued for dividends reinvested 2,657 2,225 4,168 3,957
Shares redeemed.................. (99,532) (6,735) (140,746) (58,195)
------------ ------------ ------------ -----------
NET INCREASE IN SHARES
OUTSTANDING.............. 123,376 128,563 225,803 36,040
=========== ============ ============ ==========
</TABLE>
* From August 19, 1993 (commencement of operations) to July 31, 1994.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, California 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 period indicated. This
information has been derived from the Series' financial statements.
CLASS A SHARES CLASS B SHARES
----------------------------------- ----------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
JULY 31, JANUARY 31, 1995 JULY 31, JANUARY 31, 1995
PER SHARE DATA: 1994(1) (UNAUDITED) 1994(1) (UNAUDITED)
______________ ------------ ----------- -------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $12.50 $11.56 $12.50 $11.57
------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net........... .62 .32 .56 .29
Net unrealized (loss) on investments (.94) (.39) (.93) (.39)
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (.32) (.07) (.37) (.10)
------- ------- ------- -------
DISTRIBUTIONS;
Dividends from investment income-net (.62) (.32) (.56) (.29)
------- ------- ------- -------
Net asset value, end of period... $11.56 $11.17 $11.57 $11.18
====== ====== ======= ======
TOTAL INVESTMENT RETURN(2)(3)........ (2.79%) (1.07%) (3.20%) (1.57%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(3) -- -- .50% .50%
Ratio of net investment income to
average net assets(3).......... 5.30% 5.65% 4.78% 5.21%
Decrease reflected in above expense
ratios due to undertaking by the
Manager (limited to the expense
limitation provision of the
management agreement)(3)....... 2.50% 2.04% 2.50% 2.09%
Portfolio Turnover Rate(4)....... -- 2.39% -- 2.39%
Net Assets, end of period (000's Omitted) $1,473 $2,859 $2,658 $2,972
</TABLE>
(1) From August 19, 1993 (commencement of operations) to July 31, 1994.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
See independent accountants' review report and notes to financial statements.
PREMIER INSURED MUNICIPAL BOND FUND, California Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 California 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 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 Institutional Administration Services, Inc., a provider of
mutual fund administration services, 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.
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.
PREMIER INSURED MUNICIPAL BOND FUND, California Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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 March 31, 1995 or until
such time as the net assets of the Series exceed $25 million, regardless of
whether they remain at that level, to reimburse all fees and expenses of the
Series (excluding 12b-1 distribution plan fees and certain expenses as
described above). The expense reimbursement, pursuant to the undertaking,
amounted to $54,385 for the six months ended January 31, 1995.
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 $2,482 during the six months ended
January 31, 1995 from commissions earned on sales of the Series' Class A
shares.
Prior to August 24, 1994, Dreyfus Service Corporation retained $598 from
contingent deferred sales charges imposed upon redemptions of the Series'
Class B shares.
(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.
PREMIER INSURED MUNICIPAL BOND FUND, California Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
During the six months ended January 31, 1995, $6,394 was charged to the
Series pursuant to the Class B Distribution Plan and $830 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 Serv
ice 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, $261 and $415 were charged to the Class A and Class B shares,
respectively, by Dreyfus Service Corporation. From August 24, 1994 through
January 31, 1995, $2,706 and $3,197 were charged to the Class A and Class B
shares, respectively, by the Distributor pursuant to the Shareholder Services
Plan [see Note 2(a)].
(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.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $5,801,850 and $4,551,850, respectively, for the six months ended
January 31, 1995, and consisted entirely of long-term and short-term
municipal investments.
At January 31, 1995, accumulated net unrealized depreciation on
investments was $416,900 consisting of $1,119 gross unrealized appreciation
and $418,019 gross unrealized depreciation.
At January 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, California Series
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER INSURED MUNICIPAL BOND FUND, CALIFORNIA SERIES
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Premier Insured Municipal Bond
Fund, California Series (one of the Series constituting the Premier Insured
Municipal Bond Fund) as of January 31, 1995, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended January 31, 1995. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepting
auditing standards, the statement of changes in net assets and financial
highlights for the period from August 19, 1993 to July 31, 1994 and in our
report dated September 9, 1994, we expressed an unqualified opinion on such
statement of changes in net assets and financial highlights.
(logo signature)
New York, New York
March 7, 1995
PREMIER INSURED MUNICIPAL
BOND FUND, CALIFORNIA 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. 076/629SA951
Semi-Annual Report
Premier Insured
Municipal Bond Fund
California Series
January 31, 1995
