PREMIER INSURED MUNICIPAL BOND FUND, New York Series
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Premier Insured
Municipal Bond Fund, New York 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 7.82% for Class A shares, 7.54% for
Class B shares and, from their inception on December 4, 1995, an aggregate
actual total return of 1.11% for Class C shares.* Income dividends, exempt
from Federal, New York State and New York City personal income taxes, of
approximately $.299 per share for Class A shares, $.265 per share for Class B
shares and $.078 per share for Class C shares were paid to shareholders.**
This is equivalent to a tax-free annualized distribution rate per share of
4.21% for Class A shares, 3.90% for Class B shares and 3.60% 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
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
midyear 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 recently remarked that he believes the economy is growing at an
acceptable pace. The market has taken these remarks to mean
that no additonal 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 are detailed statements about your Series'
holdings and its financial condition. We hope they are informative. Please
know that we appreciate greatly your continued confidence in the Series and
in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan]
Richard J. Moynihan
Director, Municipal Portfolio Management
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. Income may be subject to some state and local taxes for
non-New York 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, New York Series
STATEMENT OF INVESTMENTS JANUARY 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
_________ _________
<S> <C> <C>
NEW YORK-97.7%
Albany Municipal Water Finance Authority, Water and Sewer
System Revenue, Refunding 5.50%, 12/1/2022 (Insured; FGIC).............. $ 1,000,000 $ 1,003,310
Buffalo Municipal Water Finance Authority,
Water System Revenue 5%, 7/01/2025 (Insured; FGIC)...................... 750,000 715,012
Erie County 5.50%, 6/15/2025 (Insured; FGIC)................................ 500,000 499,605
Metropolitan Transportation Authority,
Commuter Facilities Revenue (Grand Central Terminal)
5.70%, 7/1/2024 (Insured; FSA)........................................ 550,000 559,262
Transit Facility Revenue 6.375%, 7/1/2020 (Insured; MBIA)............... 750,000 819,135
New York City Health and Hospital Corp., Revenue, Refunding:
5.625%, 2/15/2013 (Insured; AMBAC)...................................... 1,000,000 1,024,880
5.75%, 2/15/2022 (Insured; AMBAC)....................................... 200,000 203,304
New York City Municipal Water Finance Authority, Water and Sewer System
Revenue:
5.375%, 6/15/2019 (Insured; MBIA)....................................... 350,000 346,301
6%, 6/15/2019 (Insured; FGIC)........................................... 200,000 204,598
6.20%, 6/15/2021 (Insured; AMBAC)....................................... 600,000 637,794
New York City Transit Authority, Transit Facility Revenue
(Livingston Plaza Project) 6%, 1/1/2021 (Insured; FSA).................. 200,000 204,492
New York State, COP (City University - John Jay College)
5.50%, 8/15/2009 (Insured; AMBAC) (Prerefunded 8/15/1996) (a)........... 200,000 206,412
New York State Dormitory Authority, Revenue:
(City University System - Third Resolution) 6.30%, 7/1/2024 (Insured; AMBAC) 500,000 543,750
(Refunding - Fordham University) 5.75%, 7/1/2015 (Insured; FGIC)........ 200,000 207,692
(Refunding - Skidmore College) 5.375%, 7/1/2023 (Insured; FSA).......... 200,000 197,728
(Rochester University) 5.90%, 7/1/2017 (Insured; MBIA).................. 950,000 990,109
(State University Educational Facilities) 5.40%, 5/15/2023 (Insured; FGIC) 600,000 595,290
New York State Energy Research and Development Authority, Revenue:
Facilities (Refunding - Con Edison Co. of New York Inc. Project)
5.25%, 8/15/2020 (Insured; MBIA)...................................... 200,000 196,076
Gas Facilities (Brooklyn Union Gas) 5.60%, 6/1/2025 (Insured; MBIA)..... 200,000 199,268
Pollution Control, Refunding:
(New York State Electric and Gas Corp.) 6.05%, 4/1/2034 (Insured; MBIA) 500,000 528,535
(Rochester Gas and Electric Project) 6.50%, 5/15/2032 (Insured; MBIA). 400,000 431,664
New York State Housing Finance Agency, MFMR
6.35%, 8/15/2023 (Insured; AMBAC)....................................... 500,000 518,250
New York State Medical Care Facilities Finance Agency, Revenue:
(Hospital and Nursing Home) 6.125%, 2/15/2015 (Insured; MBIA)........... 400,000 426,784
(Long Term Health Care) 6.50%, 11/1/2015 (Insured; CGIC)................ 200,000 218,228
(Mental Health Service Facilities Improvement)
5.80%, 2/15/2019 (Insured; CGIC)...................................... 400,000 412,548
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
NEW YORK (CONTINUED)
New York State Medical Care Facilities Finance Agency, Revenue (continued):
(Montefiore Medical Center) 6%, 2/15/2035 (Insured; AMBAC).............. $ 500,000 $ 521,940
(New York Hospital) 6.50%, 8/15/2029 (Insured; AMBAC)................... 500,000 547,280
(Refunding - Saint Mary's Hospital Project) 6.20%, 11/1/2014 (Insured; AMBAC) 200,000 214,098
Niagara Falls Bridge Commission, Toll Revenue, Refunding
5.25%, 10/1/2021 (Insured; FGIC)........................................ 200,000 195,980
Suffolk County Water Authority, Waterworks Revenue
5%, 6/1/2012 (Insured; MBIA)............................................ 200,000 196,374
Triboro Bridge and Tunnel Authority, Special Obligation Refunding
6%, 1/1/2019 (Insured; MBIA)............................................ 1,000,000 1,030,990
U.S. RELATED-2.3%
Commonwealth of Puerto Rico, Refunding
5.375%, 7/01/2022 (Insured; MBIA)....................................... 350,000 350,574
__________
TOTAL INVESTMENTS (cost $14,128,857)........................................ $14,947,263
=============
</TABLE>
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
CGIC Capital Guaranty Insurance Corporation Insurance Corporation
FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
<S> <C> <C> <C>
FITCH (B) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_____ _______ __________________ ____________________
AAA Aaa AAA 100.0%
========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b) Fitch currently provides creditworthiness information for a limited
number of investments.
(c) At January 31, 1996, 25.3% of the Series' net assets are insured by
AMBAC and 35.8% are insured by MBIA.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $14,128,857)-see statement...................................... $14,947,263
Cash.................................................................... 182,430
Interest receivable..................................................... 194,529
Receivable for shares of Beneficial Interest subscribed................. 140,000
Prepaid expenses........................................................ 12,621
____________
15,476,843
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 8,937
Due to Distributor...................................................... 7,309
Payable for shares of Beneficial Interest redeemed...................... 20,079
Accrued expenses and other liabilities.................................. 29,549 65,874
_______ _________
NET ASSETS ................................................................ $15,410,969
============
REPRESENTED BY:
Paid-in capital......................................................... $14,605,543
Accumulated net realized (loss) on investments.......................... (12,980)
Accumulated net unrealized appreciation on investments-Note 3........... 818,406
____________
NET ASSETS at value......................................................... $15,410,969
============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 407,507
=======
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 737,978
=======
Class C Shares
(unlimited number of $.001 par value shares authorized)............... 75
=======
NET ASSET VALUE per share:
Class A Shares
($5,478,534 / 407,507 shares)......................................... $13.44
=======
Class B Shares
($9,931,425 / 737,978 shares)......................................... $13.46
=======
Class C Shares
($1,010 / 75 shares).................................................. $13.46
=======
See independent accountants' review report and notes to financial statments.
</TABLE>
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, New York Series
STATEMENT OF OPERATIONS SIX MONTHS ENDED JANUARY 31, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 386,220
EXPENSES:
Management fee-Note 2(a).............................................. $ 37,730
Shareholder servicing costs-Note 2(c)................................. 23,946
Distribution fees-Note 2(b)........................................... 21,493
Auditing fees......................................................... 8,203
Registration fees..................................................... 5,670
Prospectus and shareholders' reports.................................. 1,265
Trustees' fees and expenses-Note 2(d)................................. 1,015
Custodian fees........................................................ 976
Legal fees............................................................ 803
Miscellaneous......................................................... 5,401
________
TOTAL EXPENSES.................................................. 106,502
Less-reduction in management fee due to
undertakings-Note 2(a)............................................ 7,475
________
NET EXPENSES.................................................... 99,027
_______
INVESTMENT INCOME-NET........................................... 287,193
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................. $ (90)
Net unrealized appreciation on investments............................ 720,851
_________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 720,761
_______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,007,954
==========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, New York 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................................................ $ 373,738 $ 287,193
Net realized (loss) on investments................................... (12,890) (90)
Net unrealized appreciation on investments for the period............ 76,318 720,851
____________ ___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... 437,166 1,007,954
____________ ___________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares..................................................... (172,061) (115,946)
Class B shares..................................................... (201,677) (171,241)
Class C shares..................................................... _ (6)
____________ ___________
TOTAL DIVIDENDS................................................ (373,738) (287,193)
____________ ___________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares..................................................... 3,665,511 682,011
Class B shares..................................................... 5,533,055 3,240,274
Class C shares..................................................... _ 1,000
Dividends reinvested:
Class A shares..................................................... 98,623 78,783
Class B shares..................................................... 118,605 91,745
Class C shares..................................................... _ 6
Cost of shares redeemed:
Class A shares..................................................... (1,027,887) (340,583)
Class B shares..................................................... (1,301,859) (465,439)
____________ ___________
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS... 7,086,048 3,287,797
____________ ___________
TOTAL INCREASE IN NET ASSETS................................. 7,149,476 4,008,558
NET ASSETS:
Beginning of period.................................................. 4,252,935 11,402,411
____________ ___________
End of period........................................................ $11,402,411 $15,410,969
============ ===========
</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.......... 292,256 52,089 441,378 248,668 75
Shares issued for dividends
reinvested......... 7,927 5,974 9,489 6,951 -
Shares redeemed...... (85,165) (26,185) (104,836) (35,473) -
_______ __________ _______ __________ __________
NET INCREASE IN SHARES
OUTSTANDING.. 215,018 31,878 346,031 220,146 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, New York Series
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each 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
____________________ (UNAUDITED) ___________________
PER SHARE DATA: 1994(1) 1995 1994(1) 1995 (UNAUDITED) (UNAUDITED)(2)
______ ______ _________ ______ ______ ___________ _____________
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period...... $12.50 $12.79 $12.75 $12.50 $12.80 $12.77 $13.39
______ ______ _________ ______ ______ ___________ _____________
INVESTMENT OPERATIONS:
Investment income-net........ .18 .71 .30 .16 .64 .26 .08
Net realized and unrealized
gain (loss)
on investments................ .29 (.04) .69 .30 (.03) .69 .07
______ ______ _________ ______ ______ ___________ _____________
TOTAL FROM INVESTMENT OPERATIONS .47 .67 .99 .46 .61 .95 .15
______ ______ _________ ______ ______ ___________ _____________
DISTRIBUTIONS;
Dividends from investment
income-net...... (.18) (.71) (.30) (.16) (.64) (.26) (.08)
______ ______ _________ ______ ______ ___________ _____________
Net asset value, end of period $12.79 $12.75 $13.44 $12.80 $12.77 $13.46 $13.46
======= ======= ======= ======= ======= ======== ========
TOTAL INVESTMENT RETURN (3)..... 3.76%(4) 5.53% 15.51%(5) 3.72%(4) 5.08% 14.96%(5) 6.87%(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets... - .09% 1.12%(5) .50%(5) .60% 1.63%(5) 2.00%(5)
Ratio of net investment income to
average net assets.......... 5.28%(5) 5.64% 4.52%(5) 4.87%(5) 5.02% 3.97%(5) 3.61%(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) 1.45% .11%(5) 2.50%(5) 1.39% .11%(5) .06%(5)
Portfolio Turnover Rate...... - 2.76% 9.47%(4) - 2.76% 9.47%(4) 9.47%(4)
Net Assets, end of period
(000's Omitted). $2,054 $4,791 $5,479 $2,199 $6,611 $9,931 $1
(1) From May 6, 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, New York 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 New York 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, New York 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
(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 17, 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 18, 1995 through July 31, 1996 to reduce the management fees
paid by, or reimburse such excess expenses of the Series, to the extent that
the Series' aggregate annual expenses (excluding 12b-1 distribution plan fees
and certain expenses as described above) exceed an annual rate of 1.25 of 1%
of the average daily value of the Series' net assets. The reduction in
management fee, pursuant to the undertakings, amounted to $7,475 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 $1,124 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,
$21,492 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, New York 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, $6,404, $10,745 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, for the six months ended January 31, 1996,
amounted to $4,981,038 and $1,211,399, respectively.
At January 31, 1996, accumulated net unrealized appreciation on
investments was $818,406, consisting of $823,116 gross unrealized
appreciation and $4,710 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, New York Series
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Premier Insured Municipal Bond
Fund, New York Series (one of the Series constituting the Premier Insured
Municipal Bond Fund) as of 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, NEW YORK SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
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. 916/382/606SA961
[Dreyfus logo]
Semi-Annual Report
Premier Insured
Municipal Bond Fund
New York Series
January 31, 1996
