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 annual reporting period ended
July 31, 1996, your Series produced a total return, including bond price
changes and interest income, of 5.97% for Class A shares, 5.35% for Class B
shares and, since their inception on December 4, 1995, - 1.00% for Class C
shares.* Income dividends, exempt from Federal, State and City of New York
personal income taxes, of approximately $.593 per share for Class A shares,
$.527 per share for Class B shares and $.325 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, 4.07% for Class B
shares and 3.81% for Class C shares.+
THE ECONOMY
Strong second-quarter growth, a tightening labor market and signs of
upward pressure on wages have, in the words of Chairman Alan Greenspan,
placed the Federal Reserve Board (the "Fed") in a state of "heightened
surveillance" regarding signs of potentially higher inflation. So far,
inflation reports have been benign. Through July 31, the Consumer Price Index
rose 3.0% for the preceding 12 months, generally consistent with its trend
over the past several years. Wholesale prices have been similarly well-behaved,
while commodity prices have been in decline since early spring. As favorable
as these reports have been, the Fed looks deeper into the economy for signs
of strain that could result in increased inflation. Before the Fed began its
last round of interest rate increases in early 1994, there was little actual
evidence of inflation.
Investor fears that the Fed would raise short-term interest rates
resulted in a rise in long-term interest rates of a full percentage point
since January. Ironically, this rise might have stayed the Fed's hand from
being more aggressive. The effect of the rise in interest rates on consumer
spending and housing, according to one growing view, may contribute to a
moderation of economic growth over the second half of the year. Yet, little
evidence of a potential slowdown has emerged so far. Higher mortgage rates
have not tempered growth in the housing market and construction starts of new
homes are at their highest level since April 1994. Retail sales growth
remains solid despite rises in consumer installment debt and credit card
delinquencies. On the manufacturing side of the economy, industrial
production continues to gain without any sign of strain to keep up with
demand. Capacity utilization (83.2% of potential output at midyear) remains
below the 85% level that most economists believe indicates a potential for
inflationary bottlenecks. Still, we remain alert to signs of inflationary
pressures that might trigger a rise in interest rates.
MARKET ENVIRONMENT
The municipal market experienced a dramatic decline beginning in the
first quarter of 1996. Precipitating this decline was the surprising growth
in employment and brisk increase in retail sales. The market reaction to the
growth in these numbers was swift and punitive. In a matter of weeks,
interest rates as measured by long-maturity U.S. Government bonds rose from
below 6% to above 7%-a rise of about 16% in yield. This negative price action
pulled municipals down in value, albeit to a somewhat lesser extent.
Inflation, however, has yet to show any troubling rise with staying power.
Each harmful statistic indicating a return to inflation has been followed by
data suggesting a slowing economy and a falling or stable inflationary trend.
Beginning in April, the market began to stabilize in this new, lower
trading range. Recently, the market moved out of this range to the upside-a
positive development. While we are pleased to see this movement to higher
price levels, the market remains vulnerable to further downward pressure
should further economic strength appear. Economic weakness, on the other
hand, would prove beneficial to long-term security prices, relieving
immediate fears of renewed inflation. On a positive note, the municipal market
continues to benefit from lower supplies of new issues and less discussion
of a flat tax, both of which had produced price weakness in prior periods.
THE PORTFOLIO
We entered 1996 aggressively positioned with a long-duration portfolio.
Our expectation was that the economy, and therefore inflation, would remain
subdued. We expected the market to respond primarily to the continued flow of
low inflationary data. With this rate expectation and structure, the
portfolio was more vulnerable to the downturn which occurred.
We have not altered the structure of the portfolio since the downturn in
March. We still have an aggressive structure-poised to benefit should the
inflationary fears prove unsubstantiated. We are further encouraged by the
recent market moves to the higher levels mentioned previously.
While mindful of the risks of additional declines, we believe that much
of the market correction is behind us. We are ready to take strong defensive
action should the market begin to decline again.
Our primary tasks-to earn a high level of current income to the extent
consistent with the preservation of capital, while maintaining the highest
levels of credit quality-continue 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 appreciate greatly your continued confidence in the
Series and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
August 15, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, without taking into account the maximum 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 shares 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 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.
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES JULY 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER INSURED
MUNICIPAL BOND FUND, NEW YORK SERIES CLASS A SHARES AND CLASS B SHARES AND
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
[Exhibit A]
$11,739
Lehman Brothers
Municipal Bond Index*
Dollars
$11,280
Premier Insured
Municipal Bond Fund,
New York Series
(Class B Shares)
$11,080
Premier Insured
Municipal Bond Fund,
New York Series
(Class A Shares)
*Source: Lehman Brothers
[Exhibit A]
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
CLASS A SHARES CLASS B SHARES
__________________________________________________________________ _____________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
PERIOD ENDED 7/31/96 Sales Charge Sales Charge (4.5%) PERIOD ENDED 7/31/96 Redemption Redemption*
____________ ________ _________________ ________________ ___________ ______________
<S> <C> <C> <C> <C> <C>
1 Year 5.97% 1.20% 1 Year 5.35% 2.35%
From Inception (5/5/94) 6.86 4.69 From Inception (5/5/94) 6.36 5.52
ACTUAL AGGREGATE TOTAL RETURNS
CLASS C SHARES
___________________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
PERIOD ENDED 7/31/96 Redemption Redemption**
____________ ________ _________
From Inception (12/4/95) (1.00)% (1.96)%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the Class A
shares and Class B shares of Premier Insured Municipal Bond Fund, New York
Series on 5/5/94 (Inception Date) to a $10,000 investment made in the Lehman
Brothers Municipal Bond Index on that date. For comparative purposes, the
value of the Index on 4/30/94 is used as the beginning value on 5/5/94. All
dividends and capital gain distributions are reinvested. Performance for
Class C shares will vary from the performance of Class A and Class B shares
shown above due to differences in charges and expenses.
The Series invests primarily in New York municipal securities, which are
insured as to the timely payment of principal and interest by recognized
insurers of municipal securities. The Series performance shown in the line
graph takes into account the maximum initial sales charge on Class A shares
and the maximum contingent deferred sales charge on Class B shares and all
other applicable fees and expenses. Unlike the Series, the Lehman Brothers
Municipal Bond Index is an unmanaged total return performance benchmark for
the long-term, investment grade, geographically unrestricted tax exempt bond
market, calculated by using municipal bonds selected to be representative of
the municipal market overall; however, the bonds in the Index generally are
not insured. The Index does not take into account charges, fees and other
expenses. Also, unlike the Series which principally limits investments to New
York municipal obligations, the Index is not State specific. These factors
can contribute to the Index potentially outperforming the Series. Further
information relating to Series performance, including expense reimbursements,
if applicable, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report. Neither the Series shares nor the
market value of its portfolio securities are insured.
*The maximum contingent deferred sales charge for Class B shares is 3%
and is reduced to 0% after five years.
*The maximum contingent deferred sales charge for Class C shares is 1%
for shares redeemed within one year of the date of purchase.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
STATEMENT OF INVESTMENTS JULY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-96.0% AMOUNT VALUE
__________ __________
<S> <C> <C>
Albany Municipal Water Finance Authority, Water and Sewer
System Revenue, Refunding 5.50%, 12/1/2022 (Insured; FGIC).............. $ 1,000,000 $ 962,930
Buffalo Municipal Water Finance Authority,
Water System Revenue 5%, 7/1/2025 (Insured; FGIC)....................... 750,000 668,715
Erie County 5.50%, 6/15/2025 (Insured; FGIC)................................ 500,000 481,435
Metropolitan Transportation Authority, Revenue:
Commuter Facilities (Grand Central Terminal) 5.70%, 7/1/2024 (Insured; FSA) 550,000 542,784
Transit Facility 6.375%, 7/1/2020 (Insured; MBIA)....................... 750,000 785,295
New York City Health and Hospital Corp., Revenue, Refunding
5.75%, 2/15/2022 (Insured; AMBAC)....................................... 200,000 195,932
New York City Municipal Water Finance Authority, Water and Sewer System Revenue:
5.375%, 6/15/2019 (Insured; MBIA)....................................... 350,000 331,051
6%, 6/15/2019 (Insured; FGIC)........................................... 200,000 200,636
6.20%, 6/15/2021 (Insured; AMBAC)....................................... 600,000 617,040
5.50%, 6/15/2023 (Insured; MBIA)........................................ 500,000 479,335
New York City Transit Authority, Transit Facility Revenue (Livingston Plaza Project)
6%, 1/1/2021 (Insured; FSA)............................................. 200,000 200,384
New York State, COP (City University - John Jay College)
5.50%, 8/15/2009 (Insured; AMBAC) (Prerefunded 8/15/1996) (a)........... 200,000 204,148
New York State Dormitory Authority, Revenue:
(City University System - Third Resolution) 6.30%, 7/1/2024 (Insured; AMBAC) 500,000 520,725
(Refunding - Fordham University) 5.75%, 7/1/2015 (Insured; FGIC)........ 200,000 200,364
(Refunding - Skidmore College) 5.375%, 7/1/2023 (Insured; FSA).......... 200,000 187,832
(Rochester University) 5.90%, 7/1/2017 (Insured; MBIA).................. 950,000 951,007
(State University Educational Facilities) 5.40%, 5/15/2023 (Insured; FGIC) 600,000 570,246
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)...................................... 200,000 184,248
Gas Facilities (Brooklyn Union Gas):
Refunding 5.50%, 1/1/2021 (Insured; MBIA)............................. 500,000 482,725
5.60%, 6/1/2025 (Insured; MBIA)....................................... 200,000 193,732
Pollution Control, Refunding:
(New York State Electric and Gas Corp.) 6.05%, 4/1/2034 (Insured; MBIA) 500,000 506,335
(Rochester Gas and Electric Project) 6.50%, 5/15/2032 (Insured; MBIA). 400,000 413,888
New York State Housing Finance Agency, MFMR
6.35%, 8/15/2023 (Insured; AMBAC)....................................... 500,000 510,770
New York State Medical Care Facilities Finance Agency, Revenue:
(Hospital and Nursing Home) 6.125%, 2/15/2015 (Insured; MBIA)........... 400,000 410,608
(Long Term Health Care) 6.50%, 11/1/2015 (Insured; FSA)................. 200,000 213,168
(Mental Health Service) 5.25%, 8/15/2023 (Insured; FSA)................. 220,000 200,651
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
__________ __________
New York State Medical Care Facilities Finance Agency, Revenue (continued):
(Mental Health Service Facilities Improvement) 5.80%, 2/15/2019 (Insured; FSA) $ 350,000 $ 345,443
(Montefiore Medical Center):
5.75%, 2/15/2025 (Insured; AMBAC)..................................... 1,000,000 987,130
6%, 2/15/2035 (Insured; AMBAC)........................................ 500,000 500,950
(New York Hospital) 6.50%, 8/15/2029 (Insured; AMBAC)................... 500,000 528,425
(Refunding - Saint Mary's Hospital Project) 6.20%, 11/1/2014 (Insured; AMBAC) 200,000 206,438
New York State Urban Development Corporation, Revenue, Refunding
(Correctional Capital Facilities) 5.50%, 1/1/2018 (Insured; FSA)........ 280,000 271,292
Niagara Falls Bridge Commission, Toll Revenue, Refunding
5.25%, 10/1/2021 (Insured; FGIC)........................................ 200,000 186,392
Suffolk County Water Authority, Waterworks Revenue 5%, 6/1/2012 (Insured; MBIA) 200,000 186,400
____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $14,199,858).................... $14,428,454
==============
SHORT-TERM MUNICIPAL INVESTMENTS-4.0%
U.S. RELATED;
Puerto Rico Electric Power Authority, Power Revenue 3.25% (Insured; FSA) (b)
(cost $600,000)......................................................... $ 600,000 $ 600,000
==============
TOTAL INVESTMENTS-100% (cost $14,799,858)................................... $15,028,454
==============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue
FSA Financial Security Assurance
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
<S> <C> <C> <C>
FITCH (C) 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) Inverse Floater Security - the interest rate is subject to change
periodically.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) At July 31, 1996, 28.3% of the Series' net assets are insured by
AMBAC and 32.7% are insured by MBIA.
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $14,799,858)-see statement...................................... $15,028,454
Interest receivable..................................................... 196,917
Prepaid expenses........................................................ 13,353
____________
15,238,724
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 6,786
Due to Distributor...................................................... 7,483
Due to Custodian........................................................ 114,478
Payable for shares of Beneficial Interest redeemed...................... 10,183
Accrued expenses and other liabilities.................................. 32,148 171,078
__________ ____________
NET ASSETS ................................................................ $15,067,646
==============
REPRESENTED BY:
Paid-in capital......................................................... $14,867,744
Accumulated net realized (loss) on investments.......................... (28,694)
Accumulated net unrealized appreciation on investments-Note 3........... 228,596
____________
NET ASSETS at value......................................................... $15,067,646
==============
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 369,327
==============
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 788,979
==============
Class C Shares
(unlimited number of $.001 par value shares authorized)............... 7,951
==============
NET ASSET VALUE per share:
Class A Shares
($4,767,941 / 369,327 shares)......................................... $12.91
=========
Class B Shares
($10,196,918 / 788,979 shares)........................................ $12.92
=========
Class C Shares
($102,787 / 7,951 shares)............................................. $12.93
=========
See notes to financial statements.
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
STATEMENT OF OPERATIONS YEAR ENDED JULY 31, 1996
INVESTMENT INCOME:
INTEREST INCOME......................................................... $818,182
EXPENSES:
Management fee-Note 2(a).............................................. $ 78,481
Shareholder servicing costs-Note 2(c)................................. 54,269
Distribution fees-Note 2(b)........................................... 46,306
Auditing fees......................................................... 15,388
Registration fees..................................................... 10,556
Legal fees............................................................ 4,410
Prospectus and shareholders' reports.................................. 2,675
Custodian fees........................................................ 1,907
Trustees' fees and expenses-Note 2(d)................................. 1,796
Miscellaneous......................................................... 8,043
_____________
TOTAL EXPENSES.................................................... 223,831
Less-reduction in management fee due to undertakings-Note 2(a)........ 8,907
_____________
NET EXPENSES...................................................... 214,924
____________
INVESTMENT INCOME-NET............................................. 603,258
REALIZED AND UNREALIZED GAIN ON INVESTMENTS-Note 3:
Net realized (loss) on investments.................................... $(15,804)
Net unrealized appreciation on investments............................ 131,041
_____________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 115,237
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $718,495
===============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JULY 31,
_____________________________________
1995 1996
_____________ _____________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 373,738 $ 603,258
Net realized (loss) on investments...................................... (12,890) (15,804)
Net unrealized appreciation on investments for the year................. 76,318 131,041
_____________ _____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 437,166 718,495
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares........................................................ (172,061) (228,880)
Class B shares........................................................ (201,677) (374,193)
Class C shares........................................................ __ (185)
_____________ _____________
TOTAL DIVIDENDS................................................... (373,738) (603,258)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 3,665,511 958,421
Class B shares........................................................ 5,533,055 4,434,130
Class C shares........................................................ __ 101,004
Dividends reinvested:
Class A shares........................................................ 98,623 155,716
Class B shares........................................................ 118,605 193,346
Class C shares........................................................ __ 185
Cost of shares redeemed:
Class A shares........................................................ (1,027,887) (1,190,783)
Class B shares........................................................ (1,301,859) (1,102,021)
_____________ _____________
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS...... 7,086,048 3,549,998
_____________ _____________
TOTAL INCREASE IN NET ASSETS.................................... 7,149,476 3,665,235
NET ASSETS:
Beginning of year....................................................... 4,252,935 11,402,411
_____________ _____________
End of year............................................................. $11,402,411 $15,067,646
============= ===============
</TABLE>
<TABLE>
<CAPTION>
SHARES
______________________________________________________________________________________
CLASS A CLASS B CLASS C
_____________________________ ___________________________ ____________
YEAR ENDED
YEAR ENDED JULY 31, YEAR ENDED JULY 31, JULY 31,
_____________________________ ___________________________ ____________
1995 1996 1995 1996 1996*
_______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold............ 292,256 73,469 441,378 340,948 7,937
Shares issued for dividends
reinvested........... 7,927 11,953 9,489 14,843 14
Shares redeemed........ (85,165) (91,724) (104,836) (84,644) __
_______ _______ _______ _______ _______
NET INCREASE
(DECREASE) IN SHARES
OUTSTANDING.... 215,018 (6,302) 346,031 271,147 7,951
========== ========= ======== ========== ==========
___________________________
*From December 4, 1995 (commencement of initial offering) to July 31, 1996.
See 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 year indicated. This
information has been derived from the Series' financial statements.
CLASS A SHARES
_______________________________________
YEAR ENDED JULY 31,
_______________________________________
PER SHARE DATA: 1994(1) 1995 1996
_________ _______ _______
<S> <C> <C> <C>
Net asset value, beginning of year.................................... $12.50 $12.79 $12.75
_________ _______ _______
INVESTMENT OPERATIONS:
Investment income-net................................................. .18 .71 .59
Net realized and unrealized gain (loss) on investments................ .29 (.04) .16
_________ _______ _______
TOTAL FROM INVESTMENT OPERATIONS.................................... .47 .67 .75
_________ _______ _______
DISTRIBUTIONS;
Dividends from investment income-net.................................. (.18) (.71) (.59)
_________ _______ _______
Net asset value, end of year.......................................... $12.79 $12.75 $12.91
========= ======== ========
TOTAL INVESTMENT RETURN(2)................................................ 3.76%(3) 5.53% 5.97%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... _ .09% 1.17%
Ratio of net investment income to average net assets.................. 5.28%(4) 5.64% 4.56%
Decrease reflected in above expense ratios due to undertakings by the Manager
(limited to the expense limitation provision of the management agreement) 2.50%(4) 1.45% .07%
Portfolio Turnover Rate............................................... - 2.76% 26.18%
Net Assets, end of year (000's Omitted)............................... $2,054 $4,791 $4,768
___________________________
(1) From May 6, 1994 (commencement of operations) to July 31, 1994.
(2) Exclusive of sales load.
(3) Not annualized.
(4) Annualized.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Series' financial statements.
CLASS B SHARES CLASS C SHARES
_________________________________ ____________
YEAR ENDED
YEAR ENDED JULY 31, JULY 31,
_________________________________
PER SHARE DATA: 1994(1) 1995 1996 1996(2)
______ ______ ______ ________
<S> <C> <C> <C> <C>
Net asset value, beginning of year...................... $12.50 $12.80 $12.77 $13.39
______ ______ ______ ________
INVESTMENT OPERATIONS:
Investment income-net................................... .16 .64 .53 .33
Net realized and unrealized gain (loss) on investments.. .30 (.03) .15 (.46)
______ ______ ______ ________
TOTAL FROM INVESTMENT OPERATIONS...................... .46 .61 .68 (.13)
______ ______ ______ ________
DISTRIBUTIONS;
Dividends from investment income-net.................... (.16) (.64) (.53) (.33)
______ ______ ______ ________
Net asset value, end of year............................ $12.80 $12.77 $12.92 $12.93
======== ====== ======= ========
TOTAL INVESTMENT RETURN(3).................................. 3.72%(4) 5.08% 5.35% (1.51%)(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. .50%(5) .60% 1.68% 1.99%(5)
Ratio of net investment income to average net assets.... 4.87%(5) 5.02% 4.03% 2.99%(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) 1.39% .06% .34%(5)
Portfolio Turnover Rate................................. - 2.76% 26.18% 26.18%
Net Assets, end of year (000's Omitted)................. $2,199 $6,611 $10,197 $103
___________________________
(1) From May 6, 1994 (commencement of operations) to July 31, 1994.
(2) From December 4, 1995 (commencement of initial offering) to July 31, 1996.
(3) Exclusive of sales load.
(4) Not annualized.
(5) Annualized.
See notes to financial statements.
</TABLE>
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Premier Insured Municipal Bond Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering six series, including the New York Series (the "Series"). 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.
The Series' financial statements are prepared in accordance with
generally accepted accounting principles which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.
(A) PORTFOLIO VALUATION: The Series' investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Series follows an investment policy of investing primarily in
municipal obligations of one state. Economic changes affecting the state
and certain of its public bodies and municipalities may affect the ability
of issuers within the state to pay interest on, or repay principal of,
municipal obligations held by the Series.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Series to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Series may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, 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 $13,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to July 31, 1996. The
carryover does not include net realized securities losses from November 1,
1995 through July 31, 1996 which are treated, for Federal income tax
purposes, as arising in fiscal 1997. If not applied the carryover expires in
fiscal 2004.
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 value
of the Series' average daily 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 2-1\2% of the first $30 million, 2% of the next $70 million and 1-1\2%
of the excess over $100 million of the value of the Series' average daily 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 September 30, 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 the value of the Series' average daily net assets. The reduction in
management fee, pursuant to the undertakings, amounted to $8,907 during the
year ended July 31, 1996.
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
NOTES TO FINANCIAL STATEMENTS (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. During the period ended July 31, 1996, $46,260
was charged to the Series for the Class B shares and $46 was charged to the
Series for the 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 (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the period ended July 31, 1996,
$12,528, $23,130 and $15 were charged to Class A, B and C shares,
respectively, by the Distributor pursuant to the Shareholder Services Plan.
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 $4,640 during the
period ended July 31, 1996.
(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 year ended July 31, 1996,
amounted to $7,391,303 and $3,536,274, respectively.
At July 31, 1996, accumulated net unrealized appreciation on investments
was $228,596, consisting of $310,514 gross unrealized appreciation and
$81,918 gross unrealized depreciation.
At July 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
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Premier Insured Municipal Bond
Fund, New York Series (one of the series constituting the Premier Insured
Municipal Bond Fund) as of July 31, 1996, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 1996 by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Premier Insured Municipal Bond Fund, New York Series at July 31,
1996, the results of its operations for the period then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
[Ernst & Young LLP signature logo]
New York, New York
September 4, 1996
PREMIER INSURED MUNICIPAL BOND FUND, NEW YORK SERIES
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Series hereby designates all the
dividends paid from investment income-net during the fiscal year ended July
31, 1996 as "exempt-interest dividends" (not subject to regular Federal and,
for individuals who are New York residents, New York State and New York City
personal income taxes).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Series' taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1996 calendar year
on Form 1099-DIV which will be mailed by January 31, 1997.
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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 916/382AR967
Annual Report
Premier Insured
Municipal Bond Fund
New York Series
July 31, 1996
[lion2/hres logo]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER
INSURED MUNICIPAL BOND FUND, NEW YORK SERIES CLASS A SHARES AND
CLASS B SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
____________________________________________________________________
| | | | |
| | | PREMIER INSURED | PREMIER INSURED |
| PERIOD |LEHMAN BROTHERS |MUNICIPAL BOND FUND,|MUNICIPAL BOND FUND,|
| | MUNICIPAL | NEW YORK SERIES | NEW YORK SERIES |
| | BOND INDEX * | (CLASS A SHARES) | (CLASS B SHARES) |
|---------|----------------|--------------------|--------------------|
| 5/5/94 | 10,000 | 9,549 | 10,000 |
| 7/31/94 | 10,209 | 9,908 | 10,372 |
| 7/31/95 | 11,012 | 10,456 | 10,898 |
| 7/31/96 | 11,739 | 11,080 | 11,280 |
|_________|________________|____________________|____________________|
*Source: Lehman Brothers
