PREMIER INSURED MUNICIPAL BOND FUND, National Series
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Premier Insured
Municipal Bond Fund, National Series. For its semi-annual reporting period
ended January 31, 1996, your Series earned a total return, including bond
price changes, interest income and capital gain distributions, of 7.36% for
Class A shares, 7.17% for Class B shares and, from their inception on
December 4, 1995, an aggregate actual total return of 1.46% for Class C
shares.* Income dividends, exempt from Federal personal income taxes, of
approximately $.326 per share for Class A shares, $.292 per share for Class B
shares and $.086 for Class C shares were paid to shareholders.** This is
equivalent to a tax-free annualized distribution rate per share of 4.53% for
Class A shares, 4.25% for Class B shares and 3.90% 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 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 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.
*** 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, adjusted for capital gain
distributions.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, National Series
STATEMENT OF INVESTMENTS JANUARY 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
__________ __________
<S> <C> <C>
CALIFORNIA-20.1%
Bay Area Association, Tax Allocation Revenue (California Redevelopment Agency Pool)
6%, 12/15/2024 (Insured; CGIC).......................................... $250,000 $263,775
California Housing Finance Agency, Revenue 5.70%, 8/1/2016 (Insured; MBIA).. 200,000 201,516
California Pollution Control Financing Authority, PCR
(Southern California Edison Co.) 6.40%,12/1/2024 (Insured; AMBAC)....... 400,000 430,388
California Veterans Bonds 6.375%, 2/1/2027 (Insured; AMBAC)................. 1,000,000 1,031,220
Los Angeles, Wastewater System Revenue:
5.20%, 11/1/2021 (Insured; FGIC)........................................ 200,000 194,048
Refunding, 5.875%, 6/1/2024 (Insured; MBIA)............................. 200,000 207,352
Redding Redevelopment Agency, Tax Allocation Notes
5%, 9/1/2023 (Insured; CGIC)............................................ 200,000 188,720
San Marcos Public Facilities Authority, Tax Allocation Revenue, Refunding
5.50%, 8/1/2023 (Insured; CGIC)......................................... 1,000,000 1,001,830
San Mateo County Joint Powers Financing Authority, LR
(San Mateo County Health Care Center) 5.75%, 7/15/2022 (Insured; FSA)... 500,000 512,420
FLORIDA-1.0%
Miami Health Facilities Authority, Health Facility Revenue, Refunding
(Mercy Hospital Project) 5.125%, 8/15/2020 (Insured; AMBAC)............. 200,000 193,224
ILLINOIS-6.9%
Chicago, Wastewater Transmission Revenue 6.375%, 1/1/2024 (Insured; MBIA)... 200,000 217,206
Chicago Midway Airport, Revenue 6.25%, 1/1/2024 (Insured; MBIA)............. 200,000 212,832
Chicago O'Hare International Airport, Revenue, Refunding
5.60%, 11/1/2018 (Insured; MBIA)........................................ 200,000 198,122
Illinois Health Facilities Authority, Revenue:
(Northwestern Medical Faculty Foundation-Health Care)
6.625%, 11/15/2025 (Insured; MBIA).................................... 500,000 555,135
Refunding (Lutheran General Health System) 6.25%, 4/1/2018 (Insured; FSA) 200,000 212,816
INDIANA-9.5%
Indiana Health Facility Financing Authority, HR:
(Lutheran Hospital of Indiana, Inc.) 7%, 2/15/2019 (Insured; AMBAC)..... 600,000 662,196
Refunding (County Hospital of Anderson Project) 6%, 1/1/2014 (Insured; MBIA) 1,000,000 1,035,880
Lafayette Redevelopment Authority, Redevelopment Lease Rent
5.95%, 1/1/2020 (Insured; MBIA)......................................... 200,000 208,908
IOWA-1.6%
Clinton, PCR, Refunding (Interstate Power Co. Project)
6.35%, 12/1/2012 (Insured; AMBAC)....................................... 300,000 328,797
PREMIER INSURED MUNICIPAL BOND FUND, National Series
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_________ _________
MASSACHUSETTS-10.4%
Massachusetts Housing Finance Agency:
Housing Revenue, Refunding 6.75%, 7/1/2028 (Insured; AMBAC)............. $ 1,000,000 $1,055,820
SFHR 6.60%, 12/1/2026 (Insured; AMBAC).................................. 1,000,000 1,044,750
NEVADA-2.1%
Clark County, Passenger Facility Charge Revenue
(Las Vegas McCarran International Airport) 6.25%, 7/1/2022 (Insured; AMBAC) 200,000 211,296
Washoe County, Gas & Water Facilities Revenue (Sierra Pacific Power Co.)
5.90%, 6/1/2023 (Insured; MBIA)......................................... 200,000 207,462
NEW JERSEY-6.5%
New Jersey Economic Development Authority:
PCR (Public Service Electric & Gas Co.) 6.40%, 5/1/2032 (Insured; MBIA). 200,000 217,336
Water Facilities Revenue (New Jersey American Water Co., Inc. Project)
6.875%, 11/1/2034 (Insured; FGIC)..................................... 500,000 560,655
New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue
6.375%, 10/1/2026 (Insured; MBIA)....................................... 500,000 517,075
NEW MEXICO-6.3%
Farmington, PCR, Refunding (Southern California Edison Co.)
5.875%, 6/1/2023 (Insured; MBIA)........................................ 1,000,000 1,037,720
Santa Fe 6.30%, 6/1/2024 (Insured; AMBAC)................................... 200,000 227,004
NEW YORK-6.4%
New York City Municipal Water Financing Authority, Water and Sewer Systems Revenue
6.20%, 6/15/2021 (Insured; AMBAC)....................................... 1,000,000 1,062,990
New York State Energy Research and Development Authority, PCR, Refunding
(Rochester Gas & Electric Project) 6.50%, 5/15/2032 (Insured; MBIA)..... 200,000 215,832
NORTH DAKOTA-1.1%
Grand Forks, Health Care Facilities Revenue (United Hospital Obligated Group)
6.25%, 12/1/2019 (Insured; MBIA)........................................ 200,000 215,404
OKLAHOMA-2.3%
Oklahoma Industries Authority, HR (Baptist Medical Center)
7%, 8/15/2014 (Insured; AMBAC).......................................... 400,000 455,676
SOUTH CAROLINA-1.1%
South Carolina Public Service Authority, Revenue, Refunding
6.375%, 7/1/2021 (Insured; AMBAC)....................................... 200,000 214,924
TEXAS-3.7%
Austin, Airport Systems Revenue 6.125%, 11/15/2025 (Insured; MBIA).......... 500,000 530,140
PREMIER INSURED MUNICIPAL BOND FUND, National Series
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
TEXAS (CONTINUED)
Gulf Coast Waste Disposal Authority, Revenue, Refunding
(Houston Light & Power Co. Project) 6.375%, 4/1/2012 (Insured; MBIA).... $ 200,000 $ 217,278
VERMONT-1.3%
Vermont Student Assistance Corp. (Education Loan Revenue Financing Program)
6.70%, 12/15/2012 (Insured; FSA)........................................ 250,000 264,715
VIRGINIA-10.3%
Virginia Housing Development Authority, Commonwealth Mortgage
6.45%, 7/1/2028 (Insured; MBIA)......................................... 2,000,000 2,068,820
WASHINGTON-5.4%
Washington, MFMR 7.40%, 1/1/2030 (Insured; FSA)............................. 1,000,000 1,090,640
U.S. RELATED-4.0%
Commonwealth of Puerto Rico 5.375%, 7/1/2022................................ 600,000 600,984
Puerto Rico Electric Buildings Authority, Guaranteed Public Education & Health
Facilities, Refunding 5.50%, 7/1/2021 (Insured; FSA).................... 200,000 201,378
________-
TOTAL MUNICIPAL INVESTMENTS
(cost $18,729,727)...................................................... $20,074,284
===========
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
CGIC Capital Guaranty Insurance Corporation Insurance Corporation
FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
HR Hospital Revenue SFHR Single Family Housing Revenue
LR Lease Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
<S> <C> <C> <C>
STANDARD PERCENTAGE
FITCH (A) OR MOODY'S OR & POOR'S 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, 39.8% of the Series' net assets are insured by
MBIA and 34.1% are insured by AMBAC.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, National Series
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $18,729,727)-see statement...................................... $20,074,284
Interest receivable..................................................... 245,220
Prepaid expenses........................................................ 45,403
____________
20,364,907
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 9,439
Due to Distributor...................................................... 9,040
Due to Custodian........................................................ 53,149
Accrued expenses and other liabilities.................................. 31,015 102,643
_______ ___________
NET ASSETS.................................................................. $20,262,264
============
REPRESENTED BY:
Paid-in capital......................................................... $18,917,679
Accumulated undistributed net realized gain on investments.............. 28
Accumulated gross unrealized appreciation on investments................ 1,344,557
____________
NET ASSETS at value......................................................... $20,262,264
============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 659,560
============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 829,854
============
Class C Shares
(unlimited number of $.001 par value shares authorized)............... 75
============
NET ASSET VALUE per share:
Class A Shares
($8,970,735 / 659,560 shares)......................................... $13.60
========
Class B Shares
($11,290,508 / 829,854 shares)........................................ $13.61
========
Class C Shares
($1,021 / 75 shares).................................................. $13.61
========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, National Series
STATEMENT OF OPERATIONS SIX MONTHS ENDED JANUARY 31, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 586,762
EXPENSES:
Management fee-Note 2(a).............................................. $ 54,155
Shareholder servicing costs-Note 2(c)................................. 34,197
Distribution fees-Note 2(b)........................................... 26,728
Registration fees..................................................... 12,335
Auditing fees......................................................... 7,794
Legal fees............................................................ 2,282
Trustees' fees and expenses-Note 2(d)................................. 1,298
Custodian fees........................................................ 1,110
Prospectus and shareholders' reports.................................. 629
Miscellaneous......................................................... 8,462
________
TOTAL EXPENSES.................................................. 148,990
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 14,334
________
NET EXPENSES.................................................... 134,656
________
INVESTMENT INCOME-NET........................................... 452,106
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 16,219
Net unrealized appreciation on investments.............................. 908,072
________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 924,291
________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,376,397
==========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, National 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................................................... $ 676,423 $452,106
Net realized gain on investments........................................ 30,500 16,219
Net unrealized appreciation on investments for the period............... 350,233 908,072
_____________ _____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 1,057,156 1,376,397
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares........................................................ (344,399) (219,376)
Class B shares........................................................ (332,024) (232,723)
Class C shares........................................................ - (7)
Net realized gain on investments:
Class A shares........................................................ - (20,944)
Class B shares........................................................ - (25,745)
Class C shares........................................................ - (2)
_____________ _____________
TOTAL DIVIDENDS................................................... (676,423) (498,797)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 6,783,807 1,491,092
Class B shares........................................................ 6,636,400 1,266,461
Class C shares........................................................ - 1,000
Dividends reinvested:
Class A shares........................................................ 196,495 142,292
Class B shares........................................................ 220,212 166,175
Class C shares........................................................ - 9
Cost of shares redeemed:
Class A shares........................................................ (1,446,725) (1,337,424)
Class B shares........................................................ (628,161) (356,009)
_____________ _____________
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS...... 11,762,028 1,373,596
_____________ _____________
TOTAL INCREASE IN NET ASSETS.................................... 12,142,761 2,251,196
NET ASSETS:
Beginning of period..................................................... 5,868,307 18,011,068
_____________ _____________
End of period........................................................... $18,011,068 $20,262,264
============= =============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
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.......... 542,334 113,170 522,906 95,930 74
Shares issued for
dividends reinvested 15,476 10,619 17,318 12,402 1
Shares redeemed...... (117,090) (100,076) (49,943) (26,853) -
_______ __________ _______ __________ __________
NET INCREASE
IN SHARES
OUTSTANDING.... 440,720 23,713 490,281 81,479 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, National 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 JULY 31, SIX MONTHS ENDED YEAR ENDED JULY 31, SIX MONTHS ENDED PERIOD ENDED
JANUARY 31, 1996 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 $12.94 $13.01 $12.50 $12.95 $13.01 $13.53
______ ______ _________ ______ ______ ___________ _____________
INVESTMENT OPERATIONS:
Investment income-net........ .18 .77 .33 .16 .71 .29 .09
Net realized and unrealized
gain on investments........ .44 .07 .62 .45 .06 .63 .11
______ ______ _________ ______ ______ ___________ _____________
TOTAL FROM INVESTMENT OPERATIONS .62 .84 .95 .61 .77 .92 .20
______ ______ _________ ______ ______ ___________ _____________
DISTRIBUTIONS:
Dividends from investment
income-net...... (.18) (.77) (.33) (.16) (.71) (.29) (.09)
Dividends from net realized gain
on investments.......... - - (.03) - - (.03) (.03)
______ ______ _________ ______ ______ ___________ _____________
TOTAL DISTRIBUTIONS..... (.18) (.77) (.36) (.16) (.71) (.32) (.12)
______ ______ _________ ______ ______ ___________ _____________
Net asset value, end of period.. $12.94 $13.01 $13.60 $12.95 $13.01 $13.61 $13.61
======= ======= ======= ====== ====== ======== ========
TOTAL INVESTMENT RETURN (3)... 4.99%(4) 6.86% 14.60%(5) 4.94%(4) 6.24% 14.22%(5) 9.03%(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets... - .08% 1.09%(5) .50%(5) .59% 1.60%(5) 2.19%(5)
Ratio of net investment income
to average net assets......... 5.44%(5) 6.02% 4.86%(5) 4.90%(5) 5.51% 4.34%(5) 3.95%(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) 1.25% .14%(5) 2.50%(5) 1.27% .14%(5) -
Portfolio Turnover Rate...... - 9.17% 2.62%(4) - 9.17% 2.62%(4) 2.62%(4)
Net Assets, end of period
(000's Omitted). $2,525 $8,272 $8,971 $3,343 $9,739 $11,290 $1
(1) From May 4, 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, National 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 National 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 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.
(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
PREMIER INSURED MUNICIPAL BOND FUND, National Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 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 27, 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 28,
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 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 expense reimbursement,
pursuant to the undertakings, amounted to $14,334 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 $1,517 for the period
from December 1, 1995 through January 31, 1996.
(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,
$26,727 was charged to the Series for the Class B shares and $1 was charged
to the Series for the Class C shares.
PREMIER INSURED MUNICIPAL BOND FUND, National Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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,
$11,252, $13,363 and $1 were charged to Class A, B and 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, during the six months ended January 31, 1996
amounted to $3,014,000 and $501,250, respectively.
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, National Series
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Premier Insured Municipal Bond
Fund, National 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 & Young signature logo]
New York, New York
March 8, 1996
[Dreyfus lion "d" logo]
PREMIER INSURED MUNICIPAL
BOND FUND, NATIONAL 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. 128/376/601SA961
[Dreyfus logo]
Semi-Annual Report
Premier Insured
Municipal Bond Fund
National Series
January 31, 1996
