Premier Insured Municipal Bond Fund, Connecticut Series
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on the Premier Insured
Municipal Bond Fund, Connecticut Series. For its semi-annual reporting period
ended January 31, 1996, your Series earned a total return, including bond
price changes and interest income, of 6.89% for Class A shares, 6.61% for
Class B shares and, from their inception on December 4, 1995, an aggregate
actual total return of 1.28% for Class C shares.* Income dividends, exempt
from Federal and State of Connecticut personal income taxes, of approximately
$.312 per share for Class A shares, $.278 per share for Class B shares and
$.081 per share for Class C shares were paid to shareholders.** This is
equivalent to a tax-free annualized distribution rate per share of 4.38% for
Class A shares, 4.08% for Class B shares and 3.71% for Class C shares.***
THE ECONOMY
On January 31, the last day of the Series' reporting period, the Federal
Reserve Board once again lowered the Federal Funds rate another quarter of a
point to 5.25%. The Federal Funds rate is the rate of interest that the
nation's banks charge each other for overnight loans and is a key benchmark
for all other short-term interest rates. The Federal Reserve also reduced the
Discount Rate, the rate that the Fed charges banks for loans, by a quarter of
a point to 5.0%. The reduction in interest rates was a continuation of the
easing monetary policy of the Fed, a stance that has prevailed since last
July.
Mounting evidence that economic growth has been slowing, combined with
favorable inflation reports, indicate to us that the threat of recession
outweighs any near-term worries of a resurgence in price inflation. The
Consumer Price Index rose only 2.5% in 1995, the lowest rate in nearly a
decade. It also marked the fourth consecutive year that the CPI rose less
than 3%. The consumer sector of the economy was of increasing concern to
economic policy makers. The consumer sector comprises two-thirds of the
nation's economic activity, and retail sales reports in December revealed the
worst holiday season since the 1990-91 recession. Personal income growth
remains sluggish. The Conference Board, an independent business group,
reported that the Board's index of consumer confidence declined sharply in
January as consumers worried about Federal budget negotiations and the recent
flurry of layoff announcements by major corporations.
Industrial production is only moderate. Output of the nation's factories
crept up 0.1% in December. The annual rate of production slowed to 0.8% in
the fourth quarter of 1995, compared with 3.2% for the previous three months.
For the full calendar year, output rose 3.2%, little more than half the 5.9%
rate in 1994.
There are strong indications that inflation is under control. Until
mid-year 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now the focus seems to have shifted to actions designed to avoid
recession. Since last July, the Fed has moved three times to lower interest
rates. We believe that if more signs of economic weakness emerge, short-term
interest rates may continue to be lowered.
MARKET ENVIRONMENT
Municipal bonds have enjoyed a dramatic bull market for the past year. In
our opinion, the outlook continues to be very favorable, given the sluggish
economy, with little threat of inflation. Should these conditions continue,
the Federal Reserve Board may lower rates further which would be very
positive for the bond markets. It should be noted, however, that the Fed
Chairman remarked that he believes the economy is growing at an acceptable
pace. The market has taken these remarks to mean that no
additional easing is imminent and has reacted by lowering the prices of
fixed-income investments. The most positive common element in the various
market outlooks for long-term bonds is that inflation continues to be subdued
with few notable threats on the horizon.
The budget stalemate is an additional concern to market participants and
has also added to recent volatility. If the President and Congress can reach
agreement on the details to achieve a balanced budget, it would be another
strong positive for the fixed income markets.
In addition to lower rates, municipal bond performance during 1995 was
helped by the reduction in the supply of new issues. However, the early
redemption of outstanding issues remains problematic.
THE PORTFOLIO
During the reporting period, the portfolio was structured to take
advantage of the market rally. We kept an aggressive posture throughout the
period, emphasizing current to low coupons with long durations. This was
successful as indicated by the solid returns on your Series. Of course,
credit quality remained strong with all issues rated triple-A by both Moody's
and Standard & Poor's rating agencies.
Going forward, we expect to maintain the current structure. With inflation
low, the economy sluggish but resilient, and the
Federal Reserve Board's outstanding track record to date, we do not envision
a dramatic end to the positive environment that has permitted long-term
investments to prosper. Therefore, we currently intend to maintain a
fully-invested position with strong credit quality during the coming months.
Our primary task - to earn a high level of current income to the extent
consistent with preservation of capital - continues to guide 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
February 15, 1996
New York, N.Y.
* Total return includes the reinvestment of dividends and any capital
gains paid, without taking into consideration the initial sales charge in the
case of Class A shares or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and Class C shares.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders. Capital gains may be subject to some state and local
taxes. Income may be subject to some state and local taxes for
non-Connecticut residents.
*** Annualized 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 and Class C shares.
<TABLE>
<CAPTION>
Premier Insured Municipal Bond Fund, Connecticut Series
Statement of Investments January 31, 1996 (Unaudited)
Principal
Long-Term Municipal Investments-100.0% Amount Value
_______ ______
<S> <C> <C>
Connecticut-96.3.%
Cheshire:
5.80%, 8/15/2010 (Insured; FGIC)........................................ $ 500,000 $ 535,710
5.85%, 8/15/2011 (Insured; FGIC)........................................ 675,000 723,202
Columbia:
5.75%, 4/1/2014 (Insured; MBIA)......................................... 320,000 337,658
5.75%, 4/1/2015 (Insured; MBIA)......................................... 320,000 335,987
Connecticut:
Airport Revenue, Refunding 7.20%, 10/1/1997 (Insured; FGIC)............. 220,000 232,448
COP (Middletown Courthouse Facilities Project)
5.90%, 12/15/2001 (Insured; MBIA)..................................... 250,000 272,105
Special Tax Obligation Revenue (Transportation Infrastructure)
5.65%, 4/1/2013 (Insured; FGIC)....................................... 1,500,000 1,561,200
Connecticut Development Authority:
Governmental LR 6.60%, 6/15/2014 (Insured; MBIA)........................ 350,000 392,658
Health Care Revenue (Masonic) 6.50%, 8/1/2020 (Insured; AMBAC).......... 250,000 265,547
Water Facility Revenue, Refunding:
(Bridgeport Hydraulic) 5.60%, 6/1/2028 (Insured; MBIA)................ 700,000 695,282
(Connecticut Water Co. Project) 5.875%, 9/1/2022 (Insured; AMBAC)..... 250,000 254,047
Connecticut Health and Educational Facilities Authority, Revenue:
(Bridgeport Hospital) 6.625%, 7/1/2018 (Insured; MBIA).................. 700,000 770,525
(Connecticut College) 6.625%, 7/1/2011 (Insured; MBIA).................. 200,000 219,658
(Danbury Hospital) 6.50%, 7/1/2014 (Insured; MBIA)...................... 250,000 271,477
(Day Kimball Hospital) 5.375%, 7/1/2026 (Insured; FSA).................. 1,000,000 995,500
(Lawrence and Memorial Hospital) 6.25%, 7/1/2022 (Insured; MBIA)........ 285,000 321,403
(Loomis Chaffee School Project) 6%, 7/1/2025 (Insured; MBIA)............ 1,000,000 1,059,090
(Manchester Memorial Hospital) 5.75%, 7/1/2022 (Insured; MBIA).......... 100,000 101,560
(Mansfield Nursing) 5.875%, 11/1/2012 (Insured; AMBAC).................. 500,000 529,235
(Middlesex Hospital) 6.25%, 7/1/2022 (Insured; MBIA).................... 1,000,000 1,064,830
(New Britain General Hospital):
6.125%, 7/1/2014 (Insured; AMBAC)..................................... 1,000,000 1,071,540
6%, 7/1/2024 (Insured; AMBAC)......................................... 200,000 209,698
(Newington Children's Hospital):
6.05%, 7/1/2010 (Insured; MBIA)....................................... 235,000 253,151
6.10%, 7/1/2011 (Insured; MBIA)....................................... 250,000 269,055
6.25%, 7/1/2015 (Insured; MBIA)....................................... 500,000 540,325
(Norwalk Hospital) 6.25%, 7/1/2022 (Insured; MBIA)...................... 2,260,000 2,406,516
(Refunding-Hospital of Saint Raphael) 6.625%, 7/1/2014 (Insured; AMBAC). 250,000 272,945
(Refunding-Sharon Health Care Project) 6.25%, 11/1/2021 (Insured; AMBAC) 500,000 538,710
(Saint Francis Hospital and Medical Center) 5%, 7/1/2023 (Insured; FGIC) 1,460,000 1,377,875
Premier Insured Municipal Bond Fund, Connecticut Series
Statement of Investments (continued) January 31, 1996 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ ______
Connecticut (continued)
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program):
6.20%, 5/15/2012 (Insured; MBIA)...................................... $ 1,000,000 $ 1,040,690
6.40%, 5/15/2015 (Insured; MBIA)...................................... 1,000,000 1,046,680
6.125%, 5/15/2018 (Insured; MBIA)..................................... 1,655,000 1,701,688
6.30%, 5/15/2024 (Insured; MBIA)...................................... 1,000,000 1,026,020
Connecticut Municipal Electric Energy Cooperative,
Power Supply Systems Revenue, Refunding 5%, 1/1/2018 (Insured; MBIA).... 2,000,000 1,926,440
Derby 5.90%, 5/15/2010 (Insured; AMBAC)..................................... 615,000 666,027
East Hampton:
5.80%, 7/15/2010 (Insured; FGIC)........................................ 295,000 317,187
5.90%, 7/15/2011 (Insured; FGIC)........................................ 320,000 345,414
Meriden 5.50%, 11/15/2001 (Insured; MBIA)................................... 250,000 271,060
New Britain 5.375%, 3/1/2003 (Insured; MBIA)................................ 250,000 266,015
New Haven:
5.75%, 2/15/2012 (Insured; FGIC)........................................ 500,000 532,600
Air Rights Parking Facility Revenue 6.50%, 12/1/2015 (Insured; MBIA).... 500,000 546,460
New London 5.10%, 10/1/2002 (Insured; MBIA)................................. 275,000 288,838
Plainfield 5.80%, 8/1/2001 (Insured; MBIA).................................. 250,000 273,945
Regional School District Number 5:
5.90%, 1/15/2010 (Insured; MBIA)........................................ 280,000 300,745
5.90%, 1/15/2011 (Insured; MBIA)........................................ 320,000 342,509
South Central Regional Water Authority, Water Systems Revenue
5.75%, 8/1/2012 (Insured; FGIC)......................................... 1,725,000 1,817,219
Waterbury, Refunding 4.90%, 4/15/2002 (Insured; FGIC)....................... 280,000 288,050
Woodstock:
5.85%, 2/15/2009 (Insured; FGIC)........................................ 345,000 372,883
6%, 2/15/2013 (Insured; FGIC)........................................... 340,000 365,085
U.S. Related-3.7%
Puerto Rico Commonwealth, Refunding 5.375%, 7/1/2022 (Insured; MBIA)........ 1,200,000 1,201,968
_________
TOTAL INVESTMENTS (cost $30,907,871)........................................ $32,816,460
===========
Premier Insured Municipal Bond Fund, Connecticut Series
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FSA Financial Security Assurance
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
<S> <C> <C> <C>
Fitch (a) or Moody's or Standard & Poor's Percentage of Value
_____ _____ __________ ____________
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 January 31, 1996, 26.3% of the Series' net assets are insured by
FGIC and 60.8% are insured by MBIA.
(c) At January 31, 1996, the Series' had $10,994,345 (34.2% of net
assets) invested in securities whose payment of principal and interest is
dependent upon revenues generated from health care projects.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
Premier Insured Municipal Bond Fund, Connecticut Series
Statement of Assets and Liabilities January 31, 1996 (Unaudited)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $30,907,871)-see statement...................................... $32,816,460
Cash.................................................................... 148,038
Receivable for investment securities sold............................... 1,389,514
Interest receivable..................................................... 381,111
Receivable for shares of Beneficial Interest subscribed................. 68,154
Prepaid expenses........................................................ 9,912
__________
34,813,189
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 14,809
Due to Distributor...................................................... 14,507
Payable for investment securities purchased............................. 2,574,766
Accrued expenses and other liabilities.................................. 50,138 2,654,220
_________ _________
NET ASSETS ................................................................ $32,158,969
==========
REPRESENTED BY:
Paid-in capital......................................................... $30,158,280
Accumulated undistributed net realized gain on investments.............. 92,100
Accumulated net unrealized appreciation on investments-Note 3........... 1,908,589
__________
NET ASSETS at value......................................................... $32,158,969
==========
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 994,546
=========
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 1,383,172
=========
Class C Shares
(unlimited number of $.001 par value shares authorized)............... 75
=========
NET ASSET VALUE per share:
Class A Shares
($13,445,666 / 994,546 shares)........................................ $13.52
=========
Class B Shares
($18,712,289 / 1,383,172 shares)...................................... $13.53
=========
Class C Shares
($1,014 / 75 shares).................................................. $13.52
=========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
Premier Insured Municipal Bond Fund, Connecticut Series
Statement of Operations six months ended January 31, 1996 (Unaudited)
<S> <C> <C>
INVESTMENT INCOME:
Interest Income......................................................... $ 876,410
Expenses:
Management fee-Note 2(a).............................................. $ 85,257
Shareholder servicing costs-Note 2(c)................................. 51,628
Distribution fees-Note 2(b)........................................... 44,472
Auditing fees......................................................... 32,908
Trustees' fees and expenses-Note 2(d)................................. 2,296
Registration fees..................................................... 1,990
Prospectus and shareholders' reports.................................. 1,865
Legal Fees............................................................ 1,823
Custodian fees........................................................ 1,712
Miscellaneous......................................................... 6,640
_______
Total Expenses.................................................... 230,591
Less-reduction in management fee due to undertakings-Note 2(a)........ 36,681
_______
Net Expenses...................................................... 193,910
_______
INVESTMENT INCOME-NET............................................. 682,500
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 112,132
Net unrealized appreciation on investments.............................. 1,226,096
_________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 1,338,228
_________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,020,728
=========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
Premier Insured Municipal Bond Fund, Connecticut Series
Statement of Changes in Net Assets
Year Ended Six Months Ended
July 31, January 31, 1996
1995 (Unaudited)
___________ _________________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 1,170,030 $ 682,500
Net realized gain (loss) on investments.............................. (20,032) 112,132
Net unrealized appreciation on investments for the period............ 543,616 1,226,096
__________ _________
Net Increase In Net Assets Resulting From Operations........... 1,693,614 2,020,728
__________ _________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares..................................................... (586,262) (310,627)
Class B shares..................................................... (583,768) (371,867)
Class C shares..................................................... _ (6)
__________ _________
Total Dividends................................................ (1,170,030) (682,500)
__________ _________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares..................................................... 6,196,536 1,069,671
Class B shares..................................................... 11,068,365 1,691,671
Class C shares..................................................... _ 1,000
Dividends reinvested:
Class A shares..................................................... 320,037 150,687
Class B shares..................................................... 359,096 239,629
Class C shares..................................................... _ 6
Cost of shares redeemed:
Class A shares..................................................... (2,682,798) (795,095)
Class B shares..................................................... (2,076,477) (599,510)
__________ _________
Increase In Net Assets From Beneficial Interest Transactions... 13,184,759 1,758,059
__________ _________
Total Increase In Net Assets................................. 13,708,343 3,096,287
NET ASSETS:
Beginning of period.................................................. 15,354,339 29,062,682
__________ _________
End of period........................................................ $29,062,682 $32,158,969
========== =========
</TABLE>
<TABLE>
<CAPTION>
Shares
________________________________________________________________________________
Class A Class B Class C
_____________________________ ____________________________ _________________
Year Ended Six Months Ended Year Ended Six Months Ended Period Ended
July 31, January 31, 1996 July 31, January 31, 1996 January 31, 1996
1995 (Unaudited) 1995 (Unaudited) (Unaudited)*
_______ __________ _______ __________ __________
<S> <C> <C> <C> <C> <C>
CAPITAL SHARE
TRANSACTIONS:
Shares sold.......... 490,513 81,920 875,988 128,707 75
Shares issued for
dividends reinvested 25,429 11,357 28,348 18,045 _
Shares redeemed...... (216,046) (60,117) (164,414) (45,395) _
_______ ______ _______ _______ _______
Net Increase In Shares
Outstanding.... 299,896 33,160 739,922 101,357 75
======= ====== ======= ======= =======
*From December 4, 1995 (commencement of initial offering) to January 31,
1996.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
Premier Insured Municipal Bond Fund, Connecticut 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 Class C Shares
_______________________________ ____________________________ _____________
Year Ended Six Months Ended Year Ended Six Months Ended Period Ended
July 31, January 31, 1996 July 31, January 31, 1996 January 31, 1996
_______________ ________________ __________ ________________ ________________
PER SHARE DATA: 1994(1) 1995 (Unaudited) 1994(1) 1995 (Unaudited) (Unaudited)(2)
____ ____ _________ ____ ____ ___________ __________
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $12.50 $12.76 $12.95 $12.50 $12.76 $12.96 $13.43
____ ____ ____ ____ ____ ____ ____
Investment Operations:
Investment income-net..................... .19 .72 .31 .17 .65 .28 .08
Net realized and unrealized gain
on investments.......................... .26 .19 .57 .26 .20 .57 .09
____ ____ ____ ____ ____ ____ ____
Total from Investment Operations.... .45 .91 .88 .43 .85 .85 .17
____ ____ ____ ____ ____ ____ ____
Distributions;
Dividends from investment income-net...... (.19) (.72) (.31) (.17) (.65) (.28) (.08)
____ ____ ____ ____ ____ ____ ____
Net asset value, end of period............ $12.76 $12.95 $13.52 $12.76 $12.96 $13.53 $13.52
==== ==== ==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN (3)................... 3.61%(4) 7.43% 13.67%(5) 3.49%(4) 6.95% 13.11%(5) 7.92%(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets... - .07% .95%(5) .50%(5) .58% 1.46%(5) 1.99%(5)
Ratio of net investment income to average
net assets.............................. 5.17%(5) 5.66% 4.69%(5) 4.77%(5) 5.11% 4.17%(5) 3.73%(5)
Decrease reflected in above expense ratios
due to undertakings by the Manager (limited
to the expense limitation provision of the
management agreement)................... 2.50%(5) 1.10% .24%(5) 2.50%(5) 1.09% .24%(5) -
Portfolio Turnover Rate................... - 5.33% 5.60%(4) - 5.33% 5.60%(4) 5.60%(4)
Net Assets, end of period (000's Omitted). $8,438 $12,451 $13,446 $6,916 $16,612 $18,712 $1
______________________________________
(1) From May 5, 1994 (commencement of operations) to July 31, 1994.
(2) From December 4, 1995 (commencement of initial offering) to January 31, 1996.
(3) Exclusive of sales load.
(4) Not annualized.
(5) Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
Premier Insured Municipal Bond Fund, Connecticut 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 Connecticut Series (the "Series"). The
Fund's investment objective is to maximize current income exempt from Federal
and, where applicable, from State personal income taxes to the extent
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") acts as the
distributor of the Fund's shares. The Series offers Class A, Class B and
Class C shares. Class A shares are subject to a sales charge imposed at the
time of purchase, 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, and Class C shares are subject to a contingent deferred
sales charge imposed at the time of redemption on redemptions made within one
year of purchase. Other differences between the three Classes include the
services offered to and the expenses borne by each Class and certain voting
rights.
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.
(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, Connecticut 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 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, 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.
The Series has an unused capital loss carryover of approximately $7,100
available for Federal income tax purposes to be applied against future net
securities profit, if any, realized subsequent to July 31, 1995. The
carryover does not include net realized securities losses from November 1,
1994 through July 31, 1995 which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, the carryover expires in
fiscal 2003.
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
(excluding distribution expenses and certain expenses as described above)
exceed 21\2% of the first $30 million, 2% of the next $70 million and 11\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 had undertaken from August 1, 1995 through September 28, 1995 to
reduce the management fee and reimburse such excess expenses paid by the
Series, to the extent that the Series' aggregate expenses (exclusive of
certain expenses as described above) exceeded specified annual percentages of
the Series' average daily net assets. The Manager has currently undertaken
from September 29, 1995 through July 31, 1996, to reduce the management fee
paid by, or reimburse such excess expenses of the Series, to the extent that
the Series' aggregate expenses (excluding 12b-1 distribution plan fees and
certain expenses as described above) exceeded an annual rate of 1.25 of 1%
of the average daily value of the Series' net assets. The reduction in
management fee, pursuant to the undertakings, amounted to $36,681 for the six
months ended January 31, 1996.
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.
Effective December 1, 1995, the Series 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 Series. Such compensation amounted to $2,328 for the period
from December 1, 1995 through January 31, 1996.
Premier Insured Municipal Bond Fund, Connecticut Series
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Series pays the Distributor for
distributing the Series' Class B and Class C shares at an annual rate of .50
of 1% of the value of the average daily net assets of Class B shares and .75
of 1% of the value of the average daily net assets of Class C shares. For the
period ended January 31, 1996, $44,471 was charged to the Series for Class B
shares and $1 was charged to the Series for Class C shares.
(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, Class B and Class C shares for the provision of certain services.
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. For the period ended January 31, 1996,
$16,517, $22,235 and $1 were charged to Class A, Class B and Class C shares,
respectively, by the Distributor pursuant to the Shareholder Services Plan.
(d) Each trustee who is not an "affiliated person" as defined in the Act
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,
excluding short-term securities, for the six months ended January 31, 1996,
amounted to $5,029,664, and $1,697,838, respectively.
At January 31, 1996, accumulated net unrealized appreciation on
investments was $1,908,589, consisting of $1,909,336 gross unrealized
appreciation and $747 gross unrealized depreciation.
At January 31, 1996, 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, Connecticut Series
Review Report of Ernst & Young LLP, Independent Accountants
Shareholders and Board of Trustees
Premier Insured Municipal Bond Fund, Connecticut Series
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Premier Insured Municipal Bond
Fund, Connecticut Series (one of the Series constituting the Premier Insured
Municipal Bond Fund) as of January 31, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended January 31, 1996. 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 accepted
auditing standards, the statement of changes in net assets for the year ended
July 31, 1995 and financial highlights for each of the two years in the
period ended July 31, 1995 and in our report dated September 6, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
March 8, 1996
[Dreyfus lion "d" logo]
Premier Insured Municipal
Bond Fund, Connecticut 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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 129/377/603SA961
[Dreyfus logo]
Semi-Annual Report
Premier Insured
Municipal Bond Fund
Connecticut Series
January 31, 1996
