PREMIER INSURED MUNICIPAL BOND FUND, CONNECTICUT SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Premier Insured
Municipal Bond Fund, Connecticut Series. For its annual reporting period
ended July 31, 1996, your Series produced a total return, including bond
price changes and interest income, of 5.01% for Class A shares, 4.40% for
Class B shares and, since their inception on December 4, 1995, -.87% for
Class C shares.* Income dividends, exempt from Federal and State of
Connecticut personal income taxes, of approximately $.613 per share for Class
A shares, $.546 per share for Class B shares and $.332 per share for Class C
shares, were paid to shareholders.** This is equivalent to a tax-free
annualized distribution rate per share of 4.50% for Class A shares, 4.20% for
Class B shares and 3.88% 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, 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. A first warning of such a
move would come with a decline back to the market lows experienced in June.
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, CONNECTICUT SERIES JULY 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER INSURED
MUNICIPAL BOND FUND, CONNECTICUT SERIES CLASS A SHARES AND CLASS B SHARES AND
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
[Exhibit A:
Dollars
$11,739
Lehman Brothers
Municipal Bond Index*
$11,354
Premier Insured Municipal Bond Fund, Connecticut Series (Class B Shares)
$11,162
Premier Insured Municipal Bond Fund, Connecticut Series (Class A Shares)
*Source: Lehman Brothers]
<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> <S> <C> <C>
1 Year 5.01% 0.29% 1 Year 4.40% 1.40%
From Inception (5/4/94) 7.18 5.00 From Inception (5/4/94) 6.63 5.81
ACTUAL AGGREGATE TOTAL RETURNS
CLASS C SHARES
______________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
PERIOD ENDED 7/31/96 No Redemption Redemption**
____________ ________ _________
From Inception (12/4/95) (0.87)% (1.84%)
</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, Connecticut
Series on 5/4/94 (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 5/4/94. 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 Connecticut 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
Connecticut 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, CONNECTICUT SERIES
STATEMENT OF INVESTMENTS JULY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100.0% AMOUNT VALUE
_______ ______
<S> <C> <C>
Cheshire:
5.80%, 8/15/2010 (Insured; FGIC)........................................ $ 500,000 $ 515,215
5.85%, 8/15/2011 (Insured; FGIC)........................................ 675,000 696,121
Columbia:
5.75%, 4/1/2014 (Insured; MBIA)......................................... 320,000 325,459
5.75%, 4/1/2015 (Insured; MBIA)......................................... 320,000 324,173
Connecticut:
Airport Revenue, Refunding 7.20%, 10/1/1997 (Insured; FGIC)............. 220,000 227,918
COP (Middletown Courthouse Facilities Project)
5.90%, 12/15/2001 (Insured; MBIA)..................................... 250,000 265,237
Special Tax Obligation Revenue (Transportation Infrastructure)
5.65%, 4/1/2013 (Insured; FGIC)....................................... 1,500,000 1,501,965
Connecticut Development Authority:
Governmental LR 6.60%, 6/15/2014 (Insured; MBIA)........................ 350,000 379,925
Health Care Revenue (Masonic) 6.50%, 8/1/2020 (Insured; AMBAC).......... 250,000 261,932
Water Facility Revenue, Refunding:
(Bridgeport Hydraulic) 5.60%, 6/1/2028 (Insured; MBIA)................ 700,000 671,384
(Connecticut Water Co. Project) 5.875%, 9/1/2022 (Insured; AMBAC)..... 250,000 247,027
Connecticut Health and Educational Facilities Authority, Revenue:
(Bridgeport Hospital) 6.625%, 7/1/2018 (Insured; MBIA).................. 700,000 746,025
(Connecticut College) 6.625%, 7/1/2011 (Insured; MBIA).................. 200,000 217,184
(Danbury Hospital):
6.50%, 7/1/2014 (Insured; MBIA)....................................... 250,000 265,737
5.375%, 7/1/2023 (Insured; AMBAC)..................................... 2,000,000 1,875,760
(Day Kimball Hospital) 5.375%, 7/1/2026 (Insured; FSA).................. 1,000,000 935,220
(Lawrence and Memorial Hospital) 6.25%, 7/1/2022 (Insured; MBIA)........ 285,000 310,590
(Loomis Chaffee School Project):
6%, 7/1/2015 (Insured; MBIA).......................................... 715,000 731,338
6%, 7/1/2025 (Insured; MBIA).......................................... 1,000,000 1,013,130
(Manchester Memorial Hospital) 5.75%, 7/1/2022 (Insured; MBIA).......... 100,000 97,562
(Mansfield Nursing) 5.875%, 11/1/2012 (Insured; AMBAC).................. 500,000 510,860
(Middlesex Hospital) 6.25%, 7/1/2022 (Insured; MBIA).................... 1,000,000 1,020,870
(New Britain General Hospital):
6.125%, 7/1/2014 (Insured; AMBAC)..................................... 1,000,000 1,035,250
6%, 7/1/2024 (Insured; AMBAC)......................................... 200,000 200,804
(Newington Children's Hospital):
6.05%, 7/1/2010 (Insured; MBIA)....................................... 235,000 244,311
6.10%, 7/1/2011 (Insured; MBIA)....................................... 250,000 259,880
6.25%, 7/1/2015 (Insured; MBIA)....................................... 500,000 517,710
(Norwalk Hospital) 6.25%, 7/1/2022 (Insured; MBIA)...................... 260,000 268,076
(Nursing-Noble Horizon) 6%, 11/1/2022 (Insured; AMBAC).................. 500,000 501,880
(Refunding-Hospital of Saint Raphael) 6.625%, 7/1/2014 (Insured; AMBAC). 250,000 267,295
(Refunding-Sharon Health Care Project) 6.25%, 11/1/2021 (Insured; AMBAC) 500,000 516,175
PREMIER INSURED MUNICIPAL BOND FUND, CONNECTICUT SERIES
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ ______
Connecticut Health and Educational Facilities Authority, Revenue (continued):
(Saint Francis Hospital and Medical Center) 5%, 7/1/2023 (Insured; FGIC) $ 2,760,000 $ 2,425,184
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program):
6.20%, 5/15/2012 (Insured; MBIA)...................................... 1,000,000 1,022,990
6.40%, 5/15/2015 (Insured; MBIA)...................................... 1,000,000 1,035,160
6.125%, 5/15/2018 (Insured; MBIA)..................................... 1,655,000 1,675,009
6.30%, 5/15/2024 (Insured; MBIA)...................................... 1,000,000 1,016,050
Derby 5.90%, 5/15/2010 (Insured; AMBAC)..................................... 615,000 643,856
East Hampton:
5.80%, 7/15/2010 (Insured; FGIC)........................................ 295,000 304,697
5.90%, 7/15/2011 (Insured; FGIC)........................................ 320,000 332,013
Meriden 5.50%, 11/15/2001 (Insured; MBIA)................................... 250,000 264,100
New Haven:
5.75%, 2/15/2012 (Insured; FGIC)........................................ 500,000 510,485
Air Rights Parking Facility Revenue 6.50%, 12/1/2015 (Insured; MBIA).... 500,000 535,925
Plainfield 5.80%, 8/1/2001 (Insured; MBIA).................................. 250,000 266,770
Regional School District Number 5:
5.90%, 1/15/2010 (Insured; MBIA)........................................ 280,000 290,223
5.90%, 1/15/2011 (Insured; MBIA)........................................ 320,000 330,582
Waterbury, Refunding 4.90%, 4/15/2002 (Insured; FGIC)....................... 280,000 281,711
Woodstock:
5.85%, 2/15/2009 (Insured; FGIC)........................................ 345,000 360,822
6%, 2/15/2013 (Insured; FGIC)........................................... 340,000 354,521
______
TOTAL INVESTMENTS (cost $27,911,704)........................................ $28,602,111
======
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FSA Financial Security Assurance
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
<S> <C> <C> <C>
FITCH (A) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_____ _____ __________ ____________
AAA Aaa AAA 100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Fitch currently provides creditworthiness information for a limited
number of investments.
(b) At July 31, 1996, 26.2% of the Series' net assets are insured by
FGIC and 49.2% are insured by MBIA.
(c) At July 31, 1996, the Series' had $11,999,189 (41.9% of net assets)
invested in securities whose payment of principal and interest is
dependent upon revenues generated from health care projects.
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, CONNECTICUT SERIES
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1996
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $27,911,704)-see statement...................................... $28,602,111
Interest receivable..................................................... 311,319
Prepaid expenses........................................................ 8,032
______
28,921,462
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 13,869
Due to Distributor...................................................... 13,656
Due to Custodian........................................................ 218,471
Payable for shares of Beneficial Interest redeemed...................... 2,265
Accrued expenses and other liabilities.................................. 50,054 298,315
_____ ______
NET ASSETS ................................................................ $28,623,147
======
REPRESENTED BY:
Paid-in capital......................................................... $27,869,122
Accumulated undistributed net realized gain on investments.............. 63,618
Accumulated net unrealized appreciation on investments-Note 3........... 690,407
______
NET ASSETS at value......................................................... $28,623,147
======
Shares of Beneficial Interest outstanding:
Class A Shares
(unlimited number of $.001 par value shares authorized)............... 856,775
======
Class B Shares
(unlimited number of $.001 par value shares authorized)............... 1,334,918
======
Class C Shares
(unlimited number of $.001 par value shares authorized)............... 13,319
======
NET ASSET VALUE per share:
Class A Shares
($11,117,393 / 856,775 shares)........................................ $12.98
======
Class B Shares
($17,332,932 / 1,334,918 shares)...................................... $12.98
======
Class C Shares
($172,822 / 13,319 shares)............................................ $12.98
======
See notes to financial statements.
PREMIER INSURED MUNICIPAL BOND FUND, CONNECTICUT SERIES
STATEMENT OF OPERATIONS YEAR ENDED JULY 31, 1996
INVESTMENT INCOME:
INTEREST INCOME......................................................... $1,720,866
EXPENSES:
Management fee-Note 2(a).............................................. $165,914
Shareholder servicing costs-Note 2(c)................................. 101,772
Distribution fees-Note 2(b)........................................... 89,382
Auditing fees......................................................... 43,025
Legal fees............................................................ 12,607
Trustees' fees and expenses-Note 2(d)................................. 3,918
Registration fees..................................................... 3,812
Custodian fees........................................................ 3,370
Prospectus and shareholders' reports.................................. 2,596
Miscellaneous......................................................... 12,895
_____
TOTAL EXPENSES.................................................. 439,291
Less-reduction in management fee due to undertakings-Note 2(a)........ 36,681
_____
NET EXPENSES.................................................... 402,610
_____
INVESTMENT INCOME-NET........................................... 1,318,256
REALIZED AND UNREALIZED GAIN ON INVESTMENTS-Note 3:
Net realized gain on investments........................................ $ 83,650
Net unrealized appreciation on investments.............................. 7,914
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 91,564
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,409,820
=====
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER INSURED MUNICIPAL BOND FUND, CONNECTICUT SERIES
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JULY 31,
________________________________
1995 1996
_______ ______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 1,170,030 $ 1,318,256
Net realized gain (loss) on investments................................. (20,032) 83,650
Net unrealized appreciation on investments for the year................. 543,616 7,914
______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 1,693,614 1,409,820
______ ______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares........................................................ (586,262) (575,778)
Class B shares........................................................ (583,768) (740,873)
Class C shares........................................................ - (1,605)
______ ______
TOTAL DIVIDENDS................................................... (1,170,030) (1,318,256)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 6,196,536 1,488,845
Class B shares........................................................ 11,068,365 2,773,704
Class C shares........................................................ - 171,568
Dividends reinvested:
Class A shares........................................................ 320,037 266,864
Class B shares........................................................ 359,096 483,988
Class C shares........................................................ - 1,605
Cost of shares redeemed:
Class A shares........................................................ (2,682,798) (3,172,879)
Class B shares........................................................ (2,076,477) (2,544,794)
______ ______
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL
INTEREST TRANSACTIONS........................................... 13,184,759 (531,099)
______ ______
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... 13,708,343 (439,535)
NET ASSETS:
Beginning of year....................................................... 15,354,339 29,062,682
______ ______
End of year............................................................. $29,062,682 $28,623,147
====== ======
</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............ 490,513 114,141 875,988 212,187 13,193
Shares issued for dividends
reinvested........... 25,429 20,292 28,348 36,852 126
Shares redeemed........ (216,046) (239,044) (164,414) (195,936) -
_______ _______ _______ _______ _______
NET INCREASE
(DECREASE) IN SHARES
OUTSTANDING.... 299,896 (104,611) 739,922 53,103 13,319
======= ======= ======= ======= =======
______________________________
*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, CONNECTICUT SERIES
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each 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 $12.76 $12.95
____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net................................................. .19 .72 .61
Net realized and unrealized gain on investments....................... .26 .19 .03
____ ____ ____
TOTAL FROM INVESTMENT OPERATIONS.................................... .45 .91 .64
____ ____ ____
DISTRIBUTIONS;
Dividends from investment income-net.................................. (.19) (.72) (.61)
____ ____ ____
Net asset value, end of year.......................................... $12.76 $12.95 $12.98
==== ==== ====
TOTAL INVESTMENT RETURN(2)................................................ 3.61%(3) 7.43% 5.01%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... - .07% 1.03%
Ratio of net investment income to average net assets.................. 5.17%(4) 5.66% 4.66%
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) 1.10% .13%
Portfolio Turnover Rate............................................... - 5.33% 30.21%
Net Assets, end of year (000's Omitted)............................... $8,438 $12,451 $11,117
___________________________
(1) From May 5, 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, CONNECTICUT 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 $12.76 $12.96 $13.43
____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net................................... .17 .65 .55 .33
Net realized and unrealized gain (loss) on investments.. .26 .20 .02 (.45)
____ ____ ____ ____
TOTAL FROM INVESTMENT OPERATIONS...................... .43 .85 .57 (.12)
____ ____ ____ ____
DISTRIBUTIONS;
Dividends from investment income-net.................... (.17) (.65) (.55) (.33)
____ ____ ____ ____
Net asset value, end of year............................ $12.76 $12.96 $12.98 $12.98
==== ==== ==== ====
TOTAL INVESTMENT RETURN(3).................................. 3.49%(4) 6.95% 4.40% (1.32%)(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. .50%(5) .58% 1.54% 1.98%(5)
Ratio of net investment income to average net assets.... 4.77%(5) 5.11% 4.15% 3.94%(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) 1.09% .12% -
Portfolio Turnover Rate................................. - 5.33% 30.21% 30.21%
Net Assets, end of year (000's Omitted)................. $6,916 $16,612 $17,333 $173
___________________________
(1) From May 5, 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, CONNECTICUT 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 Connecticut Series (the "Series"). The
Fund's investment objective is to maximize current income exempt from Federal
and, where applicable, from State personal income taxes to the extent
consistent with the preservation of capital. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Series offers Class A, Class B and
Class C shares. Class A shares are subject to a sales charge imposed at the
time of purchase, Class B shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within five
years of purchase and Class C shares are subject to a contingent deferred
sales charge imposed at the time of redemption on redemptions made within one
year of purchase. Other differences between the three Classes include the
services offered to and the expenses borne by each Class and certain voting
rights.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
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, CONNECTICUT 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 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 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 28, 1995, to
reduce the management fee and reimburse such excess expenses paid by the
Series, to the extent that the Series' aggregate expenses (exclusive of
certain expenses as described above) exceeded specified annual percentages of
the value of the Series' average daily net assets. The Manager has currently
undertaken from September 29, 1995 through September 30, 1996, to reduce the
management fee and reimburse such excess expenses paid by 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
$36,681 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.
(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,
$89,077 was charged to the Series for the Class B shares and $305 was charged
to the Series for the Class C shares.
PREMIER INSURED MUNICIPAL BOND FUND, CONNECTICUT SERIES
NOTES TO FINANCIAL STATEMENTS (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 (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,
$30,775, $44,538 and $102 were charged to the Class A, Class B and Class 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 $9,453 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 $9,341,682 and $8,972,919, respectively.
At July 31, 1996, accumulated net unrealized appreciation on investments
was $690,407, consisting of $808,051 gross unrealized appreciation and
$117,644 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, CONNECTICUT SERIES
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER INSURED MUNICIPAL BOND FUND, CONNECTICUT SERIES
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Premier Insured Municipal Bond
Fund, Connecticut Series (one of the Series constituting the Premier Insured
Municipal Bond Fund) as of 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, Connecticut Series at July
31, 1996, the results of its operations for the year 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 and Young LLP signature logo]
New York, New York
September 4, 1996
PREMIER INSURED MUNICIPAL BOND FUND, CONNECTICUT 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 Connecticut residents, Connecticut 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, CONNECTICUT SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 129/377AR967
[Dreyfus lion/2hres logo]
Annual Report
Premier Insured
Municipal Bond Fund
Connecticut Series
July 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER
INSURED MUNICIPAL BOND FUND, CONNECTICUT 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 | CONNECTICUT SERIES | CONNECTICUT SERIES |
| | BOND INDEX * | (CLASS A SHARES) | (CLASS B SHARES) |
|---------|-----------------|--------------------|--------------------|
| 5/4/94 | 10,000 | 9,549 | 10,000 |
| 7/31/94 | 10,209 | 9,894 | 10,349 |
| 7/31/95 | 11,012 | 10,629 | 11,068 |
| 7/31/96 | 11,739 | 11,162 | 11,354 |
|_________|_________________|____________________|____________________|
*Source: Lehman Brothers
