DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Premier Insured Municipal
Bond Fund for the 12-month period ended July 31, 1998, as shown in the following
table:
<TABLE>
<CAPTION>
DISTRIBUTION RATE
TOTAL RETURN* PER SHARE**
___________ _______________
<S> <C> <C>
Class A Shares . . . . . . . . . . . . . . . . . . . . 5.76% 4.24%
Class B Shares . . . . . . . . . . . . . . . . . . . . 5.30% 3.93%
Class C Shares . . . . . . . . . . . . . . . . . . . . 4.98% 3.70%
</TABLE>
THE ECONOMY
Low inflation, low unemployment and low interest rates characterized the
economy over the reporting period. Consumer confidence was at a level not seen
in 30 years, and consumers spent freely. As a result, the demand for big ticket
items was robust. The housing market remained solid and cars and trucks sold at
the highest rate in a decade. (The Asian crisis actually aided the domestic
housing market since the flight to safety of foreign capital into U.S.
fixed-income markets helped lower mortgage rates.) Yet by the end of the
reporting period, there were signs that the economy was slowing of its own
accord: second-quarter economic growth slowed to 1.6%, the lowest rate in three
years and dramatically below the 5.5% rate reported for the first quarter.
Despite evidence of an economic slowdown, the Federal Reserve Board remained
concerned about inflation, fearful that low unemployment and climbing
compensation costs could cause a rekindling of price pressures if demand
accelerates. The Fed has refrained from raising its target rate for Federal
Funds from the current 5.50% due to concern that such an action would further
complicate the Asian financial crisis. The last rise in short-term rates was in
March 1997. (The Federal Funds rate is the rate of interest that banks charge
each other for overnight loans.) Additionally, there has been a growing
expectation that a weakening in foreign demand for U.S. goods would serve to
restrain the U.S. economy, and that appears to be occurring. Fed Chairman Alan
Greenspan had expressed his view regarding the likelihood of the spillover
effect from the Asian crisis. In fact, export demand has slumped all year, and
consequently the trade deficit has widened dramatically. U.S. companies with
overseas exposure have begun to feel a profit pinch from the Asian economic
crisis. This weakness might expand beyond the manufacturing and agricultural
areas into the heretofore robust consumer and service sectors of our economy,
which are the sectors that have buffered the effects of the overseas slowdown on
the economy.
Inflation, recently cited as the primary worry of Fed Chairman Greenspan,
remained benign over the reporting period, as it has throughout the eight-year
economic expansion. The Consumer Price Index rose a mere 1.6% through midyear.
The much-watched Employment Cost Index (a broad measure of compensation trends)
has shown some evidence of an upward drift in wage inflation. On June 30, wages
and salaries were 3.5% higher than a year ago, the best 12-month gain since
1991. Thus, as of midyear, real pay increases (after adjusting for inflation),
were almost 2% higher than a year ago, clear evidence of an extremely tight
labor market.
THE MARKET ENVIRONMENT
Few periods in recent memory could have been viewed as more favorable for the
fixed-income markets than your Fund's most recent fiscal year. Steady, moderate
economic growth, a low level of inflation, generally declining industrial
commodity prices and a strengthening currency all contributed to create an
overall friendly climate for the bond market. This was not the outlook as the
year began. Rather, at that time market anxieties had been ratcheted higher by
the comments of various Federal Reserve members calling to question the "new
paradigm" of economic discipline, which held that the economy could grow above
what the consensus held was its capacity without a commensurate increase in
inflation. These comments succeeded in forcing yields to adjust to their highest
levels of the year in order to more adequately reflect the capacity constraints
confronting the economy. The rise was short-lived however, and relatively mild
in nature as attention soon shifted to a series of economic crises rolling
through several emerging market economies of Southeast Asia. These culminated
with the formal devaluations of the currencies of Thailand, Malaysia and
Indonesia. As concerns mounted over the potential deflationary impact these
events would have around the globe, bond prices began to rise when investors
began to accumulate fixed income securities. Toward the end of calendar year
1997, as it became increasingly apparent that the larger, more established Asian
economies of countries like Japan and South Korea were not immune to these
difficulties, the scope of the problem expanded. In January, 1998 the demand for
the "safe haven" of U.S. fixed-income securities pushed yields to their lowest
level in more than a year. From there, prices of fixed-income securities spent
the next several months confined to a relatively narrow range whose extremes
were determined by the vacillation of market sentiment between the poles of a
debate. On the one hand was the question of how long the United States can
maintain above-trend economic growth without a significant increase in
inflation. On the other, the degree to which deflation emanating from Asia will
subdue future domestic growth. As the Fund's fiscal year drew to a close, it
became apparent that the economies of Russia, Europe and South America were
being negatively impacted more significantly than had been anticipated. As a
result, bond prices advanced and interest rates declined to levels not witnessed
in more than ten years.
While buoyed by the same factors throughout the fiscal year, municipal bonds
underperformed their taxable counterparts on a relative basis. A comparison of
the movements of the yield of the 30-year U.S. Treasury Bond and the Bond
Buyer's 25 Bond Revenue Bond Index illustrates this point clearly. For the year,
Treasury yields declined by 98 basis points (0.98%) to close the year at 5.71%,
while the Revenue Index fell by 25 basis points (0.25%) to close at 5.36%. The
reason for this was that during the early strength of the markets, municipals
were supported by a formidable supply/demand dynamic which pushed tax exempt
yields to a level which, when viewed as a percentage of taxable yields, were
relatively expensive by historical standards. Consequently, as taxable yields
declined over the period, tax exempt yields moved in a similar though more
restrained fashion. This relative underperformance during the course of the year
places municipal bonds in an inexpensive light compared to taxable alternatives,
and as such, poised to outperform going forward.
PORTFOLIO FOCUS
In managing your Fund' s assets in such an environment, a decidedly
constructive posture was maintained. While trading activity sought to adjust
portfolio structure to the changing sentiments which drove prices, in general we
strove to create a vehicle that was more responsive to a declining interest rate
environment. During those periods when volatility increased and prices
retreated, emphasis was placed on accumulating securities bearing strong income
characteristics and minimal levels of principal volatility. As prices advanced,
our purchasing focus shifted to those securities whose principal values would
most closely mirror the anticipated appreciation of the market in general.
Throughout the process we continued to work to enhance the liquidity and
performance characteristics of the Fund by extending the optional redemption
provisions of securities held in the portfolio and improving underlying
creditworthiness.
As can be seen by the graph which accompanies this report, for the most recent
reporting period the Fund underperformed the Lehman Brothers Municipal Bond
Index. There were two reasons for this: First, all the securities held in your
Fund are insured by a triple "A" rated guarantor, while the Lehman Index
contains lesser rated securities whose yields are higher in order to compensate
bond holders for the greater degree of credit risk they are incurring. Second,
the Index is just that, an index. Unlike a mutual fund, it does not incur fees
and expenses that will, over time, impact performance.
We appreciate your investment in the Dreyfus Premier Insured Municipal Bond
Fund, and we want to assure you that we are, at all times, working to provide
you with rewarding returns.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
August 18, 1998
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, divided by the maximum offering price per
share at the end of the period in the case of Class A shares or the net asset
value per share in the case of Class B and Class C shares, adjusted for capital
gain distributions. Some income may be subject to the Federal Alternative
Minimum Tax (AMT) for certain shareholders.
<TABLE>
<CAPTION>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND JULY 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER INSURED
MUNICIPAL BOND FUND CLASS A SHARES AND CLASS B SHARES AND THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX
Dollars
$13,718
Lehman Brothers Municipal Bond Index*
$13,160
Dreyfus Premier Insured Municipal Bond Fund (Class B Shares)
$13,025
Dreyfus Premier Insured Municipal Bond Fund (Class A Shares)
*Source: Lehman Brothers
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 7/31/98 Sales Charge Sales Charge (4.5%) Period Ended 7/31/98 Redemption Redemption*
____________________ _____________ ____________________ __________________ ___________ ___________________
<S> <C> <C> <C> <C> <C>
1 Year 5.76% 0.98% 1 Year 5.30% 1.30%
From Inception (5/3/94) 7.58 6.42 From Inception (5/3/94) 7.05 6.67
</TABLE>
Class C Shares
_______________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 7/31/98 No Redemption Redemption**
____________________ _____________ ____________________
1 Year 4.98% 3.98%
From Inception (12/4/95) 4.62 4.62
- ---------------
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 Dreyfus Premier Insured Municipal Bond Fund on 5/3/94
(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 5/3/94. All dividends and capital gain
distributions are reinvested. Performance for Class C shares will vary from the
performance of both Class A and Class B shares shown above due to differences in
charges and expenses.
The Fund invests primarily in municipal securities which are insured as to the
timely payment of principal and interest by recognized insurers of municipal
securities. The Fund' s 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 Fund, the Lehman Brothers Municipal Bond Index is an
unmanaged total return performance benchmark for the long-term, investment grade
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 which can contribute to the Index potentially outperforming
the Fund. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights section
of the Prospectus and elsewhere in this report. Neither the Fund shares nor the
market value of its portfolio securities are insured.
*The maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six 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>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS JULY 31, 1998
Principal
Long-Term Municipal Investments--94.7% Amount Value
- ------------------------------------------------------- ____________ ___________
<S> <C> <C>
California--6.4%
California Housing Finance Agency, Revenue 5.70%, 8/1/2016 (Insured; MBIA) . . . . . . . . $ 200,000 $ 204,774
California Pollution Control Financing Authority, PCR (Southern California
Edison Co.)
6.40%, 12/1/2024 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 435,276
San Joaquin Hills Transportation Corridor Agency, Highway Revenue, Refunding
Zero Coupon, 1/15/2031 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 461,375
Colorado--4.6%
E-470 Public Highway Authority, Revenue, Refunding
Zero Coupon, 9/1/2016 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 297,982
Jefferson County School District No. R-001 5%, 12/15/2017 (Insured; FGIC). . . . . . . . . 500,000 493,560
Florida--1.1%
Miami Health Facilities Authority, Health Facility Revenue, Refunding
(Mercy Hospital Project) 5.125%, 8/15/2020 (Insured; AMBAC) . . . . . . . . . . . . . . 200,000 197,654
Illinois--12.8%
Chicago Midway Airport, Revenue 6.25%, 1/1/2024 (Insured; MBIA). . . . . . . . . . . . . . 200,000 215,528
Chicago, Wastewater Transmission Revenue:
6.375%, 1/1/2024 (Insured; MBIA) (Prerefunded 1/1/2005) (a) . . . . . . . . . . . . . . 200,000 226,272
Refunding, 5.125%, 1/1/2025 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . 1,000,000 982,900
Illinois Health Facilities Authority, Revenue:
(Northwestern Medical Faculty Foundation-Health Care)
6.625%, 11/15/2025 (Insured; MBIA) (Prerefunded 11/15/2004) (a) . . . . . . . . . . . 500,000 573,015
Refunding (Lutheran General Health System) 6.25%, 4/1/2018 (Insured; FSA) . . . . . . . 200,000 226,528
Indiana--11.0%
Indiana Health Facility Financing Authority, HR:
(Lutheran Hospital of Indiana, Inc.)
7%, 2/15/2019 (Insured; AMBAC) ( Prerefunded 2/15/1999) (a) . . . . . . . . . . . . . 600,000 622,632
Refunding (Community Hospital of Anderson Project) 6%, 1/1/2014 (Insured; MBIA) . . . . 1,000,000 1,079,210
Lafayette Redevelopment Authority, Redevelopment Lease Rent
5.95%, 1/1/2020 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 212,622
Iowa--1.9%
Clinton, PCR, Refunding (Interstate Power Co. Project)
6.35%, 12/1/2012 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 330,360
Kentucky--3.2%
Louisville and Jefferson County Metropolitan Sewer District,
Sewer and Drain System Revenue, Refunding
6.25%, 5/15/2026 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 554,170
Massachusetts--6.1%
Massachusetts Housing Finance Agency SFHR 6.60%, 12/1/2026 (Insured; AMBAC). . . . . . . . 990,000 1,059,874
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ____________ ___________
Nevada--1.3%
Clark County, Passenger Facility Charge Revenue
(Las Vegas McCarran International Airport):
6.25%, 7/1/2022 (Insured; AMBAC) ( Prerefunded 7/1/2002) (a) . . . . . . . . . . . . . $ 195,000 $ 213,160
6.25%, 7/1/2022 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 5,385
New Jersey--7.6%
New Jersey Economic Development Authority:
PCR (Public Service Electric & Gas Co.) 6.40%, 5/1/2032 (Insured; MBIA) . . . . . . . . 200,000 217,306
Water Facilities Revenue (NJ American Water Co., Inc. Project)
6.875%, 11/1/2034 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 562,835
New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue
6.375%, 10/1/2026 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 535,360
New Mexico--5.8%
Farmington, PCR, Refunding (Southern California Edison Co.)
5.875%, 6/1/2023 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 792,195
Santa Fe, Revenue 6.30%, 6/1/2024 (Insured; AMBAC) ( Prerefunded 6/1/2004) (a) . . . . . . 200,000 221,136
New York--10.0%
Metropolitan Transportation Authority, Dedicated Tax Fund
5.25%, 4/1/2026 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,001,950
New York State Dormitory Authority, Revenue (Mount Sinai Medical School)
5.15%, 7/1/2024 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 509,345
New York State Energy Research and Development Authority, PCR, Refunding
(Rochester Gas & Electric Project) 6.50%, 5/15/2032 (Insured; MBIA) . . . . . . . . . . 200,000 216,062
North Dakota--1.3%
Grand Forks Health Care Facilities Revenue (United Hospital Obligated Group)
6.25%, 12/1/2019 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 220,356
Oklahoma--2.5%
Oklahoma Industries Authority, HR (Baptist Medical Center)
7%, 8/15/2014 (Insured; AMBAC) ( Prerefunded 8/15/2000) (a) . . . . . . . . . . . . . . 400,000 431,668
Pennsylvania--2.8%
Chester County Health and Educational Facilities Authority, Health System
Revenue
(Jefferson Health System) 5.125%, 5/15/2018 (Insured; AMBAC) . . . . . . . . . . . . . . 500,000 492,625
South Carolina--1.3%
South Carolina Public Service Authority, Revenue, Refunding
6.375%, 7/1/2021 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 217,812
Texas--4.4%
Austin, Airport Systems Revenue 6.125%, 11/15/2025 (Insured; MBIA) . . . . . . . . . . . . 500,000 539,505
Gulf Coast Waste Disposal Authority, Revenue, Refunding (Houston Light & Power
Co. Project)
6.375%, 4/1/2012 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 218,410
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JULY 31, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ____________ ___________
Virginia--1.3%
Prince William County Service Authority, Water and Sewer System Revenue,
Refunding
4.75%, 7/1/2029 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 240,000 $ 224,693
Washington--6.4%
Washington, MFMR (Gilman Meadows Project) 7.40%, 1/1/2030 (Insured; FSA) . . . . . . . . . 1,000,000 1,104,930
Wisconsin--2.9%
Wisconsin Health and Educational Facilities Authority, Revenue, Refunding
(Aurora Health Care, Inc.) 5.25%, 8/15/2027 (Insured; MBIA) . . . . . . . . . . . . . . 500,000 496,670
____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $15,258,466) . . . . . . . . . . . . . . . . . $16,395,135
____________
Short-Term Municipal Investment--3.5%
- -------------------------------------------------------
Texas;
Brazos River Authority, PCR, Refunding (Texas Utilities Electric Co.) VRDN
3.70% (Insured; MBIA) (b) (cost $600,000) . . . . . . . . . . . . . . . . . . . . . . . $ 600,000 $ 600,000
_____________
TOTAL MUNICIPAL INVESTMENTS (cost $15,858,466) . . . . . . . . . . . . . . . . . . . . . . 98.2% $16,995,135
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8% $ 319,862
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $17,314,997
_______ _____________
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MFMR Multi-Family Mortgage Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FSA Financial Security Assurance SFHR Single Family Housing Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
_______ ________ _________________ ___________________
<S> <C> <C> <C>
AAA Aaa AAA 96.5%
F-1 MIG1/ P1 SP1/ A1 3.5
_____
100.0%
_____
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)Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest rates.
(c)Fitch currently provides creditworthiness information for a limited number
of investments.
(d) At July 31, 1998, 53.0% of the Fund's net assets are insured by MBIA.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 1998
Cost Value
____________ ___________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $15,858,466 $16,995,135
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 131,902
Interest receivable . . . . . . . . . . . . . . . . . . . 197,596
____________
17,324,633
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 101
Due to Distributor . . . . . . . . . . . . . . . . . . . 7,620
Accrued expenses and other liabilities . . . . . . . . . 1,915
____________
9,636
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,314,997
____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $15,999,087
Accumulated net realized gain (loss) on investments . . . 179,241
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 1,136,669
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,314,997
____________
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
_____________________________
Class A Class B Class C
____________ ____________ ____________
<S> <C> <C> <C>
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,202,333 $9,101,037 $11,627
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601,679 667,405 852.40
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . . . $13.63 $13.64 $13.64
_______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED JULY 31, 1998
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $989,846
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . . . . . $ 97,239
Registration fees . . . . . . . . . . . . . . . . . . . . 68,091
Shareholder servicing costs--Note 3(c) . . . . . . . . . 58,010
Distribution fees--Note 3(b) . . . . . . . . . . . . . . 48,706
Trustees' fees and expenses--Note 3(d) . . . . . . . . . 16,522
Legal fees . . . . . . . . . . . . . . . . . . . . . . . 13,551
Auditing fees . . . . . . . . . . . . . . . . . . . . . . 12,887
Prospectus and shareholders' reports . . . . . . . . . . 8,102
Custodian fees . . . . . . . . . . . . . . . . . . . . . 1,743
Loan commitment fees--Note 2 . . . . . . . . . . . . . . 161
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 17,016
_________
Total Expenses . . . . . . . . . . . . . . . . . . 342,028
Less--reduction in management fee due to
undertaking--Note 3(a) . . . . . . . . . . . . . . . . (94,915)
_________
Net Expenses . . . . . . . . . . . . . . . . . . . 247,113
_________
INVESTMENT INCOME-NET. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 742,733
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . . . . . $198,888
Net unrealized appreciation (depreciation) on investments . . (3,933)
_________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 194,955
_________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $937,688
_________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
July 31, 1998 July 31, 1997
_____________ _____________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 742,733 $ 800,204
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . . . . 198,888 49,319
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . . . . . . (3,933) 683,061
____________ ____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . . 937,688 1,532,584
____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (356,100) (369,967)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (386,389) (430,199)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (244) (38)
Net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30,088) (38,568)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38,755) (53,235)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) (5)
____________ ____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (811,580) (892,012)
____________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,303,306 607,447
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445,442 1,347,382
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,398 ---
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235,597 257,949
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277,605 330,335
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 43
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,485,623) (1,471,651)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,908,143) (2,672,018)
____________ ____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . . . . (1,121,204) (1,600,513)
____________ ____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . (995,096) (959,941)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,310,093 19,270,034
____________ ____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,314,997 $18,310,093
____________ ____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
______________________________________
Year Ended Year Ended
July 31, 1998 July 31, 1997
_____________ _____________
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96,050 46,183
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . 17,379 19,586
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (109,652) (111,584)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . 3,777 (45,815)
_____________ _____________
Class B
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,973 102,444
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . 20,472 25,069
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (141,025) (203,605)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . (87,580) (76,092)
_____________ _____________
Class C
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757 ---
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . 16 3
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . 773 3
_____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
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.
Class A Shares
____________________________________________________________
Year Ended July 31,
____________________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994(1)
_______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $13.53 $13.06 $13.01 $12.94 $12.50
_______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .61 .60 .63 .77 .18
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . .15 .53 .08 .07 .44
_______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . .76 1.13 .71 .84 .62
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income-net . . . . . . . . . . (.61) (.60) (.63) (.77) (.18)
Dividends from net realized gain on investments . . . . . (.05) (.06) (.03) -- --
_______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . (.66) (.66) (.66) (.77) (.18)
_______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . $13.63 $13.53 $13.06 $13.01 $12.94
_______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN (2). . . . . . . . . . . . . . . . . 5.76% 8.91% 5.56% 6.86% 4.99%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . 1.11% 1.24% 1.17% .08% --
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 4.48% 4.54% 4.80% 6.02% 5.44%(4)
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . .54% .14% .13% 1.25% 2.50%(4)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 22.94% 44.50% 29.73% 9.17% --
Net Assets, end of period (000's Omitted) . . . . . . . . $8,202 $8,090 $8,409 $8,272 $2,525
- -----------------------------
(1) From May 4, 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>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
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.
Class B Shares
____________________________________________________________
Year Ended July 31,
____________________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994(1)
_______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $13.53 $13.07 $13.01 $12.95 $12.50
_______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .54 .53 .57 .71 .16
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . .16 .52 .09 .06 .45
_______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . .70 1.05 .66 .77 .61
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income-net . . . . . . . . . . (.54) (.53) (.57) (.71) (.16)
Dividends from net realized gain on investments . . . . . (.05) (.06) (.03) -- --
_______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . (.59) (.59) (.60) (.71) (.16)
_______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . $13.64 $13.53 $13.07 $13.01 $12.95
_______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN (2). . . . . . . . . . . . . . . . . 5.30% 8.28% 5.09% 6.24% 4.94%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . 1.63% 1.75% 1.68% .59% .50%(4)
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 3.97% 4.03% 4.28% 5.51% 4.90%(4)
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . .53% .14% .13% 1.27% 2.50%(4)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 22.94% 44.50% 29.73% 9.17% --
Net Assets, end of period (000's Omitted) . . . . . . . . $9,101 $10,219 $10,860 $9,739 $3,343
- -----------------------------
(1) From May 4, 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>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
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.
Class C Shares
____________________
Year Ended July 31,
____________________
PER SHARE DATA: 1998 1997 1996(1)
______ ______ ______
<S> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . $13.54 $13.07 $13.53
______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 .50 .34
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . .15 .53 (.43)
______ ______ ______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 1.03 (.09)
______ ______ ______
Distributions:
Dividends from investment income-net . . . . . . . . . . . . . . . . . . . . . . . . . (.51) (.50) (.34)
Dividends from net realized gain on investments . . . . . . . . . . . . . . . . . . . . (.05) (.06) (.03)
______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.56) (.56) (.37)
______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13.64 $13.54 $13.07
______ ______ ______
TOTAL INVESTMENT RETURN (2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.98% 8.07% (.94%)(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . . . . . . . . . 1.77% 2.00% 2.08%(3)
Ratio of net investment income to average net assets . . . . . . . . . . . . . . . . . 3.82% 3.70% 3.84%(3)
Decrease reflected in above expense ratios due to undertakings by the Manager . . . . . .66% .11% 1.17%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.94% 44.50% 29.73%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . . . . . . . . . $12 $1 $1
- -----------------------------
(1) From December 4, 1995 (commencement of initial offering) to July 31, 1996.
(2) Exclusive of sales load.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus 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. The Fund's investment objective is to maximize
current income exempt from Federal income tax 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") is 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 ("CDSC") on
Class B share 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 CDSC imposed on Class C shares redeemed 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 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: Investments in securities (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.Under the terms of the custodian
agreement, the Fund received net earnings credits of $2,376 during the period
ended July 31, 1998 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
(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 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.
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption facility ("Facility" ) to be utilized for temporary or emergency
purposes, including the financing of redemptions. In connection therewith, the
Fund has agreed to pay commitment fees on its pro rata portion of the Facility.
Interest is charged to the Fund at rates based on prevailing market rates in
effect at the time of borrowings. During the period ended July 31, 1998, the
Fund did not borrow under the Facility.
NOTE 3--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 had undertaken from August 1, 1997 through January 6, 1998, to
reduce the management fee 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, commitment
fees and extraordinary expenses) exceeded an annual rate of 1.25% of the value
of the Fund' s average daily net assets, and thereafter, through February 10,
1998, to reduce the management fee paid by the Fund, to the extent that the
Fund' s aggregate expenses (excluding certain expenses as described above)
exceeded specified annual percentages of the Fund's average daily net assets.
The Manager has currently undertaken from February 11, 1998, to reduce the
management fee paid or reimburse such excess expenses of the Fund, to the extent
that the Fund' s aggregate annual expenses (excluding certain expenses as
described above) exceed an annual rate of 1% of the value of the Fund's average
daily assets. The reduction in management fee, pursuant to the undertaking,
amounted to $94,915 during the period ended July 31, 1998.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act,
Class B and Class C shares pay the Distributor for distributing their 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, 1998, Class B and Class C
shares were charged $48,658 and $48, respectively, pursuant to the Distribution
Plan.
(C) Under the Shareholder Services Plan, Class A, Class B and Class C shares
pay 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 July 31, 1998,
Class A, Class B and Class C shares were charged $19,854, $24,329 and $16,
respectively, 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. During the period
ended July 31, 1998, the Fund was charged $8,436 pursuant to the transfer agency
agreement.
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended July 31, 1998 amounted
to $3,864,545 and $5,076,318, respectively.
At July 31, 1998, accumulated net unrealized appreciation on investments was
$1,136,669, consisting of $1,139,842 gross unrealized appreciation and $3,173
gross unrealized depreciation.
At July 31, 1998, 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).
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier Insured Municipal
Bond Fund as of July 31, 1998, 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 and financial highlights. Our procedures included confirmation of
securities owned as of July 31, 1998 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
Dreyfus Premier Insured Municipal Bond Fund at July 31, 1998, 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 & YOUNG LLP signature logo]
New York, New York
August 28, 1998
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended July 31, 1998:
--all the dividends paid from investment income-net are "exempt-interest
dividends" (not generally subject to regular Federal income tax) , an
--the Fund hereby designates $.0508 per share as a long-term capital gain
distribution (of which none is subject to the 20% maximum Federal tax rate) of
the $.0533 per share paid on December 4, 1997.
As required by Federal tax law rules, shareholders will receive notification
of their portion of the Fund's taxable ordinary dividends (if any) and capital
gain distributions (if any) paid for the 1998 calendar year on Form 1099-DIV
which will be mailed by January 31, 1999.
DREYFUS PREMIER INSURED
MUNICIPAL BOND FUND
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. 128/376AR987
ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
INSURED MUNICIPAL
BOND FUND
- -------------------------------------------------------------------------------
JULY 31, 1998
[Lion "d" logo reg.tm]
(reg.tm)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
PREMIER INSURED MUNICIPAL BOND FUND CLASS A SHARES AND CLASS
B SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
DREYFUS DREYFUS
LEHMAN PREMIER PREMIER
BROTHERS INSURED INSURED
PERIOD MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND FUND BOND FUND
INDEX * (CLASS A SHARES) (CLASS B SHARES)
5/3/94 10,000 9,549 10,000
7/31/94 10,209 10,025 10,494
7/31/95 11,012 10,713 11,149
7/31/96 11,739 11,308 11,717
7/31/97 12,943 12,316 12,687
7/31/98 13,718 13,025 13,160
*Source: Lehman Brothers
