PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of Premier Insured Municipal
Bond Fund, National Series for the semi-annual reporting period year ended
January 31, 1997 as shown in the following table:
<TABLE>
Annualized
Total Return* Distribution Rate**
__________________ __________________
<S> <C> <C>
Class A 3.19% 4.34%
Class B 2.84% 4.04%
Class C 2.72% 3.79%
</TABLE>
THE ECONOMY
The Federal Open Market Committee, the policy-making arm of the Federal
Reserve Board (the "Fed"), has left monetary policy unchanged since late
January, 1996 when it reduced both the Federal Funds target rate and the
Discount Rate. Despite the Open Market Committee's apparent satisfaction
regarding interest rate levels, long-term interest rates rose through midyear
in anticipation that the economy would overheat and bring a rekindling of
inflation. In fact, the opposite occurred. Throughout the year, the economy
alternately slowed and accelerated in a relatively narrow band, while
inflation remained subdued. The unemployment rate remained below 5.5% for
most of the year, while the growth in new jobs was robust (and worrisome,
since it seemed to indicate the economy was growing too fast). The tightening
labor market did not result in inflationary increases in wage rates, however,
since workers seemed more concerned with keeping their jobs than with getting
raises. For the full year 1996, the Employment Cost Index (a statistical
series closely followed by Federal Reserve Board Chairman Greenspan) rose
2.9% and the Consumer Price Index rose by 3.3%. Evidently, noninflationary
wage increases were a key factor in the Fed's accommodative monetary policy la
st year. Recent remarks by Chairman Greenspan have indicated his awareness
that the period of wage restraint may be ending, particularly as the economy
seemed to be again strengthening at the end of the year.
Spurred by record exports and a late-year surge in industrial production,
the economy ended 1996 on a decidedly upbeat note. Fourth quarter gross
domestic product (GDP) rose at a 4.7% annual rate, significantly above
consensus estimates. Yet, as was the case for all of 1996, inflation remained
under control. The GDP price deflator increased at an annual rate of only
1.4%, the smallest rise for this broad measure of inflation in 30 years. With
the economy now in its sixth year of recovery, it is no surprise that
consumer attitude surveys show rising confidence. According to the Conference
Board, consumer confidence is at its highest level since the current economic
expansion began in March 1991. This consumer optimism was reflected
dramatically in the real estate market where sales of existing homes in 1996
rose above four million units for the first time.
Yet there are some factors that possess the potential to dampen economic
growth. Continued cautious consumer retail spending combined with modest
installment borrowing could result in inventory accumulation and a slowdown
in production. Last year, retail sales rose 4.4%, a moderate rate of
increase, particularly after adjusting for the 3.3% rate of inflation. On the
international front, the strength in the dollar could curb the demand for
U.S. goods abroad and slow U.S. factories' activity. Well worth watching in
the near term is the continued strong rate of growth in new jobs which, when
combined with a low unemployment rate, could result in workers' concerns
about job security being replaced by demand for wage increases. In turn, if
wage increases become inflationary, they could lead to a tightening in
monetary policy by the Open Market Committee.
MARKET ENVIRONMENT
For much of the past year the trading environment for fixed income
securities has been dominated by a measure of volatility one would expect to
find during periods of rapidly shifting perceptions as to the course of
economic growth and
the ensuing level of inflationary pressures. Early on, attention focused on
the tightening of the labor markets as the economy continued to expand at a
quickening pace. Investors became convinced of an imminent tightening of
monetary policy by the Federal Reserve Board's Open Market Committee. As
such, interest rates were driven to their highest levels in more than a year.
As subsequent data showed an abatement in the pace of the economy's rate of
growth and the absence of any clear signs of inflationary pressures market
perceptions quickly reversed, sending prices up and interest rates back down
to more comfortable levels. These rapid shifts in investors' perceptions of
the economy and the appropriate levels of long-term interest rates occurred
frequently throughout the year, establishing a broad trading range in prices.
In November, as investors became convinced of a significant slowing in the
rate of growth of the economy, this range in prices was redefined to higher
levels. With the turn of the calendar into 1997, however, these higher levels
proved unsustainable as evidence continued to mount of the resilience of the
economy's current expansion.
Throughout 1996 municipal securities were hard pressed to escape the
volatility witnessed by the fixed income markets in general. Ultimately, tax
exempt bonds were supported by a formidable technical dynamic of strong
demand and limited supply which enabled municipals to significantly
outperform their taxable counterparts. A comparison of the movement of
30-year U.S. Treasury yields and municipal yields as represented by the Bond
Buyer's 25 Bond Revenue Index clearly illustrates this point. Over the course
of the year ended January 31, 1997, 30-year Treasury yields rose more than 75
basis points (0.75%) to close the period at 6.78%. Over the same time the
Revenue Index increased by 33 basis points to close the period at 6.02%.
THE PORTFOLIO
In managing your Fund's assets during a period of such volatility, a
decidedly conservative posture was maintained. During those periods when
perceptions became more tentative, emphasis was placed on those securities
bearing more muted characteristics of principal volatility and higher levels
of tax-free income. At these times higher levels of cash reserves were
established in order to further buffer the portfolio from the consequences of
a rising interest rate environment. As perceptions became more constructive
and prices advanced, trading activity sought to extend portfolio duration in
order to capitalize on potential price appreciation inherent in such an
environment.
We appreciate your investment in the Premier Insured Municipal Bond Fund,
National Series, and we want to assure you that we are, at all times, working
in the Fund's best interest.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
February 17, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares or the contingent deferred sales charge imposed on
redemptions in the case of Class B and Class C shares.
** Distribution rate per share is based upon dividends per share paid from
net investment income during the period (annualized), 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 in the case of Class B and Class C shares, adjusted
for capital gain distributions. Some investors may be subject to the Federal
Alternative Minimum Tax.
<TABLE>
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
STATEMENT OF INVESTMENTS JANUARY 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments_97.3% Amount Value
_______ ______
<S> <C> <C>
California_10.0%
Bay Area Association, Tax Allocation Revenue (California Redevelopment Agency
Pool)
6%, 12/15/2024 (Insured; CGIC)............................................ $ 250,000 $ 256,058
California Housing Finance Agency, Revenue 5.70%, 8/1/2016 (Insured; MBIA).. 200,000 197,682
California Pollution Control Financing Authority, PCR (Southern California
Edison Co.)
6.40%,12/1/2024 (Insured; AMBAC).......................................... 400,000 420,160
San Francisco Building Authority, LR (San Francisco Civic Center Complex)
5.25%, 12/1/2021 (Insured; AMBAC)......................................... 1,000,000 946,230
Georgia_5.2%
Atlanta and Fulton County Recreation Authority, Revenue, Refunding
(Downtown Arena Public Improvement Project) 5.375%, 12/1/2026 (Insured; MBIA) 1,000,000 958,390
Florida_1.0%
Miami Health Facilities Authority, Health Facility Revenue, Refunding
(Mercy Hospital Project) 5.125%, 8/15/2020 (Insured; AMBAC)............... . 200,000 184,100
Illinois_11.4%
Chicago Midway Airport, Revenue 6.25%, 1/1/2024 (Insured; MBIA)............. 200,000 204,578
Chicago Wastewater Transmission Revenue:
6.375%, 1/1/2024 (Insured; MBIA).......................................... 200,000 212,052
Refunding, 5.125%, 1/1/2025 (Insured; FGIC)............................... 1,000,000 914,230
Illinois Health Facilities Authority, Revenue:
(Northwestern Medical Faculty Foundation-Health Care)
6.625%, 11/15/2025 (Insured; MBIA)...................................... 500,000 541,915
Refunding (Lutheran General Health System) 6.25%, 4/1/2018 (Insured; FSA). 200,000 218,910
Indiana_15.5%
Indiana Development Finance Authority, Environmental Revenue (PSI Energy,
Inc.)
5.75%, 2/15/2028 (Insured; MBIA).......................................... 1,000,000 968,370
Indiana Health Facility Financing Authority, HR:
(Lutheran Hospital of Indiana, Inc.) 7%, 2/15/2019 (Insured; AMBAC)....... 600,000 643,620
Refunding (County Hospital of Anderson Project) 6%, 1/1/2014 (Insured; MBIA) 1,000,000 1,023,960
Lafayette Redevelopment Authority, Redevelopment Lease Rent
5.95%, 1/1/2020 (Insured; MBIA)........................................... 200,000 201,348
Iowa_1.8%
Clinton, PCR, Refunding (Interstate Power Co. Project)
6.35%, 12/1/2012 (Insured; AMBAC)......................................... 300,000 320,085
Massachusetts_11.4%
Massachusetts Housing Finance Agency:
Housing Revenue, Refunding 6.75%, 7/1/2028 (Insured; AMBAC)............... 1,000,000 1,047,430
SFHR 6.60%, 12/1/2026 (Insured; AMBAC).................................... 1,000,000 1,029,785
Nevada_1.1%
Clark County Passenger Facility Charge, Revenue, Custodial Receipts
(Las Vegas McCarran International Airport) 6.25%, 7/1/2022 (Insured; AMBAC) 200,000 205,412
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ ______
New Jersey_7.0%
New Jersey Economic Development Authority:
PCR (Public Service Electric & Gas Co.) 6.40%, 5/1/2032 (Insured; MBIA)... $ 200,000 $ 211,186
Water Facilities Revenue (NJ American Water Co., Inc. Project)
6.875%, 11/1/2034 (Insured; FGIC)....................................... 500,000 549,585
New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue
6.375%, 10/1/2026 (Insured; MBIA)......................................... 500,000 511,865
New Mexico_6.7%
Farmington, PCR, Refunding (Southern California Edison Co.)
5.875%, 6/1/2023 (Insured; MBIA).......................................... 1,000,000 1,013,040
Santa Fe 6.30%, 6/1/2024 (Insured; AMBAC)................................... 200,000 219,316
New York_1.1%
Metropolitan Transportation Authority, Dedicated Tax Fund
5.25%, 4/1/2026 (Insured; MBIA)........................................... 1,000,000 943,740
New York State Energy Research and Development Authority, PCR, Refunding
(Rochester Gas & Electric Project) 6.50%, 5/15/2032 (Insured; MBIA)....... 200,000 212,658
North Dakota_1.1%
Grand Forks Health Care Facilities Revenue (United Hospital Obligated Group)
6.25%, 12/1/2019 (Insured; MBIA).......................................... 200,000 210,250
Oklahoma_2.4%
Oklahoma Industries Authority, HR (Baptist Medical Center)
7%, 8/15/2014 (Insured; AMBAC)............................................ 400,000 440,520
South Carolina_1.2%
South Carolina Public Service Authority, Revenue, Refunding
6.375%, 7/1/2021 (Insured; AMBAC)......................................... 200,000 210,840
Texas_4.0%
Austin, Airport Systems Revenue 6.125%, 11/15/2025 (Insured; MBIA).......... 500,000 511,035
Gulf Coast Waste Disposal Authority, Revenue, Refunding
(Houston Light & Power Co. Project) 6.375%, 4/1/2012 (Insured; MBIA)...... 200,000 213,060
Washington_6.0%
Washington, MFMR 7.40%, 1/1/2030 (Insured; FSA)............................. 1,000,000 1,091,920
West Virginia_5.2%
West Virginia, GO 5.25%, 11/1/2023 (Insured; FGIC).......................... . 1,000,000 947,040
_______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $17,194,122)........................................................ $17,780,370
=======
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1997 (UNAUDITED)
Principal
Short-Term Municipal Investments_2.7% Amount Value
_______ ______
U.S. Related;
Puerto Rico Electric Power Authority, Power Revenue 3.67%, 7/1/2023 (a)
(cost $500,000)........................................................... $ 500,000 $ 500,000
=======
TOTAL INVESTMENTS_100.0% (cost $17,694,122)................................. $18,280,370
=======
</TABLE>
<TABLE>
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
CGIC Capital Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FSA Financial Security Assurance MFMR Multi-Family Mortgage Revenue
GO General Obligation PCR Pollution Control Revenue
HR Hospital Revenue SFHR Single Family Housing Revenue
</TABLE>
<TABLE>
Summary of Combined Ratings
Fitch (b) or Moody's or Standard & Poor's Percentage of Value
_______ ________ __________________ ____________________
<S> <C> <C> <C>
AAA Aaa AAA 100.0%
====
</TABLE>
Notes to Statement of Investments:
(a) Inverse floater security_the interest rate is subject to change
periodically.
(b) Fitch currently provides creditworthiness information for a limited
number of investments.
(c) At January 31, 1997, 43.2% of the Fund's net assets are insured by
MBIA and 30.1% are insured by AMBAC.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1997 (UNAUDITED)
Cost Value
_______ ______
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $17,694,122 $18,280,370
Cash....................................... 353,059
Interest receivable........................ 225,416
Prepaid expenses........................... 37,324
_______
18,896,169
_______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 7,568
Due to Distributor......................... 8,602
Accrued expenses and other liabilities..... 30,592
_______
46,762
_______
NET ASSETS.................................................................. $18,849,407
=======
REPRESENTED BY: Paid-in capital............................ $18,221,930
Accumulated net realized gain (loss) on investments 41,229
Accumulated net unrealized appreciation
........ (depreciation) on investments_Note 3 586,248
_______
NET ASSETS.................................................................. $18,849,407
=======
</TABLE>
<TABLE>
NET ASSET VALUE PER SHARE
__________________________________
Class A Class B Class C
______ _______ _______
<S> <C> <C> <C>
Net Assets.................................................. $8,071,751 $10,776,635 $1,021
Shares Outstanding.......................................... 615,713 821,797 77.890
NET ASSET VALUE PER SHARE................................... $13.11 $13.11 $13.11
==== ==== ====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
STATEMENT OF OPERATIONS SIX MONTHS ENDED JANUARY 31, 1997 (UNAUDITED)
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $571,358
EXPENSES: Management fee_Note 2(a)................... $ 54,247
Shareholder servicing costs _Note 2(c)..... 33,470
Distribution fees_Note 2(b)................ 28,324
Registration fees.......................... 21,563
Auditing fees.............................. 8,018
Prospectus and shareholders' reports....... 3,007
Legal fees................................. 1,783
Trustees' fees and expenses_Note 2(d)...... 1,559
Custodian fees............................. 1,179
Miscellaneous.............................. 8,002
_____
Total Expenses....................... 161,152
Less_reduction in management fee due to
undertaking_Note 2(a).................. (9,540)
_____
Net Expenses......................... 151,612
_____
INVESTMENT INCOME_NET....................................................... 419,746
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 3:
Net realized gain (loss) on investments.... $ 41,348
Net unrealized appreciation (depreciation) on investments 128,707
_____
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 170,055
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $589,801
=====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
January 31, 1997 Year Ended
(Unaudited) July 31, 1996
_________ _______
<S> <C> <C>
OPERATIONS:
Investment income_net................................................. $ 419,746 $ 877,544
Net realized gain (loss) on investments............................... 41,348 107,880
Net unrealized appreciation(depreciation) on investments.............. 128,707 21,056
_______ _______
Net Increase (Decrease) in Net Assets Resulting from Operations... 589,801 1,006,480
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Class A shares...................................................... (191,022) (418,559)
Class B shares...................................................... (228,705) (458,960)
Class C shares...................................................... (19) (25)
Net realized gain on investments:
Class A shares...................................................... (38,568) (20,944)
Class B shares...................................................... (53,235) (25,745)
Class C shares...................................................... (5) (2)
_______ _______
Total Dividends................................................... (511,554) (924,235)
_______ _______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares...................................................... 532,102 1,931,728
Class B shares...................................................... 995,890 1,825,900
Class C shares...................................................... ___ 1,000
Dividends reinvested:
Class A shares...................................................... 147,198 267,130
Class B shares...................................................... 195,848 311,548
Class C shares...................................................... 24 28
Cost of shares redeemed:
Class A shares...................................................... (1,052,057) (2,111,785)
Class B shares...................................................... (1,317,879) (1,048,828)
______- ______-
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (498,874) 1,176,721
______- ______-
Total Increase (Decrease) in Net Assets......................... (420,627) 1,258,966
NET ASSETS:
Beginning of Period................................................... 19,270,034 18,011,068
______- ______-
End of Period......................................................... $18,849,407 $19,270,034
======= =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
_______________________________________
Six Months Ended
January 31, 1997 Year Ended
(Unaudited) July 31, 1996
__________ _______
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
_____
Shares sold.......................................................... 40,486 147,108
Shares issued for dividends reinvested............................... 11,169 20,186
Shares redeemed...................................................... (79,659) (159,424)
_____ _____
Net Increase (Decrease) in Shares Outstanding (28,004) 7,870
===== =====
Class B
_____
Shares sold.......................................................... 75,872 138,665
Shares issued for dividends reinvested............................... 14,849 23,538
Shares redeemed...................................................... (100,001) (79,501)
_____ _____
Net Increase (Decrease) in Shares Outstanding (9,280) 82,702
===== =====
Class C*
_____
Shares sold.......................................................... __ 74
Shares issued for dividends reinvested............................... 2 2
_____ _____
Net Increase (Decrease) in Shares Outstanding 2 76
===== =====
*From December 4, 1995 (commencement of initial offering) to July 31,
1996.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
Class A Shares
_____________________________________________________
Six Months Ended
January 31, 1997 Year Ended July 31,
______________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994(1)
_________ ____ ____ ____
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $13.06 $13.01 $12.94 $12.50
____ ____ ____ ____
Investment Operations:
Investment income_net............................. .30 .63 .77 .18
Net realized and unrealized gain (loss)
on investments.................................. .11 .08 .07 .44
____ ____ ____ ____
Total from Investment Operations.................. .41 .71 .84 .62
____ ____ ____ ____
Distributions:
Dividends from investment income_net.............. (.30) (.63) (.77) (.18)
Dividends from net realized gain on investments... (.06) (.03) ._ ._
____ ____ ____ ____
Total Distributions............................... (.36) (.66) (.77) (.18)
____ ____ ____ ____
Net asset value, end of period.................... $13.11 $13.06 $13.01 $12.94
==== ==== ==== ====
TOTAL INVESTMENT RETURN(2)............................ 6.33%(3) 5.56% 6.86% 4.99%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... 1.25%(3) 1.17% .08% _
Ratio of net investment income
to average net assets........................... 4.55%(3) 4.80% 6.02% 5.44%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager
(limited to the expense limitation
provision of the management agreement).......... .09%(3) .13% 1.25% 2.50%(3)
Portfolio Turnover Rate........................... 26.11%(4) 29.73% 9.17% _
Net Assets, end of period (000's Omitted)......... $8,072 $8,409 $8,272 $2,525
(1) From May 4, 1994 (commencement of operations) to July 31, 1994.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL 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 period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
Class B Shares
____________________________________________________
Six Months Ended
January 31, 1997 Year Ended July 31,
______________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994(1)
_________ ____ ____ ____
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $13.07 $13.01 $12.95 $12.50
____ ____ ____ ____
Investment Operations:
Investment income_net............................. .27 .57 .71 .16
Net realized and unrealized gain (loss)
on investments.................................. .10 .09 .06 .45
____ ____ ____ ____
Total from Investment Operations.................. .37 .66 .77 .61
____ ____ ____ ____
Distributions:
Dividends from investment income-net.............. (.27) (.57) (.71) (.16)
Dividends from net realized gain on investments... (.06) (.03) ._ ._
____ ____ ____ ____
Total Distributions............................... (.33) (.60) (.71) (.16)
____ ____ ____ ____
Net asset value, end of period.................... $13.11 $13.07 $13.01 $12.95
==== ==== ==== ====
TOTAL INVESTMENT RETURN(2)............................ 5.63%(3) 5.09% 6.24% 4.94%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... 1.75%(3) 1.68% .59% .50%(3)
Ratio of net investment income
to average net assets........................... 4.04%(3) 4.28% 5.51% 4.90%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager
(limited to the expense limitation
provision of the management agreement).......... .10%(3) .13% 1.27% 2.50%(3)
Portfolio Turnover Rate........................... 26.11%(4) 29.73% 9.17% _
Net Assets, end of period (000's Omitted)......... $10,777 $10,860 $9,739 $3,343
(1) From May 4, 1994 (commencement of operations) to July 31, 1994.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL 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 period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
Class C Shares
______________________________________
Six Months Ended Year Ended
January 31, 1997 July 31,
PER SHARE DATA: (Unaudited) 1996(1)
__________________ _______________
<S> <C> <C>
Net asset value, beginning of period................................ $13.07 $13.53
___ ____
Investment Operations:
Investment income_net............................................... .25 .34
Net realized and unrealized gain (loss)
on investments.................................................... .10 (.43)
___ ____
Total from Investment Operations.................................... .35 (.09)
___ ____
Distributions:
Dividends from investment income_net................................ (.25) (.34)
Dividends from net realized gain on investments..................... (.06) (.03)
___ ____
Total Distributions................................................. (.31) (.37)
___ ____
Net asset value, end of period...................................... $13.11 $13.07
=== ====
TOTAL INVESTMENT RETURN(2).............................................. 5.40%(3) (.94%)(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................. 2.00%(3) 2.08%(3)
Ratio of net investment income
to average net assets............................................. 3.71%(3) 3.84%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager
(limited to the expense limitation
provision of the management agreement)............................ .07%(3) 1.17%(3)
Portfolio Turnover Rate............................................. 26.11%(4) 29.73%
Net Assets, end of period (000's Omitted)........................... $1 $1
(1) From December 4, 1995 (commencement of initial offering) to July 31, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Premier Insured Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering six series including the National Series (the "Fund"). 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 Fund is authorized to issue an
unlimited number of $.001 par value shares in the following classes of
shares: Class A, Class B and Class C. 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 six years of purchase (five years for shareholders
beneficially owning Class B shares on November 30, 1996) 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 classes include the services offered to and the expenses borne by
each class and certain voting rights.
The Trust accounts separately for the assets, liabilities and operations
of each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
The Fund's 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 Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund 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 Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal
PREMIER INSURED MUNICIPAL BOND FUND, NATIONAL SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 Fund not to
distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund 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 Fund's average daily net assets and is payable monthly. The Manager
has undertaken from August 1, 1996 through July 31, 1997, to reduce the
management fees paid by, or reimburse such excess expenses of the Fund, to
the extent that the Fund's aggregate annual expenses (excluding 12b-1
distribution plan fees, taxes, brokerage, interest on borrowings and extraordi
nary expenses) exceed an annual rate of 1.25% of the value of the Fund's
average daily net assets. The reduction in management fee, pursuant to the
undertaking, amounted to $9,540 during the period ended January 31, 1997.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's 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 January 31, 1997,
$28,320 was charged to the Fund for the Class B shares and $4 was charged to
the Fund for the Class C shares.
(C) Under the Shareholder Services Plan, the Fund 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 Fund 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 January 31,
1997, $10,497, $14,160 and $1 were charged to Class A, B and C shares,
respectively, by the Distributor pursuant to the Shareholder Services Plan.
The Fund 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 Fund. Such
compensation amounted to $4,702 during the period ended January 31, 1997.
(D) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Trust 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 period ended January 31, 1997
amounted to $4,823,150 and $5,631,872, respectively.
At January 31, 1997, accumulated net unrealized appreciation on
investments was $586,248, consisting of $702,448 gross unrealized
appreciation and $116,200 gross unrealized depreciation.
At January 31, 1997, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
PREMIER INSURED MUNICIPAL
BOND FUND, NATIONAL SERIES
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. 128/376SA971
Semi-Annual Report
Premier Insured
Municipal Bond Fund
National Series
January 31, 1997
Registration Mark
[Dreyfus lion/2hres logo]
