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 six-month period ended January 31, 1998, as
shown in the following table:
<TABLE>
<CAPTION>
Annualized
Total Return* Distribution Rate**
___________ _______________
<S> <C> <C>
Class A................................ 4.16% 4.12%
Class B................................ 3.97% 3.81%
Class C................................ 3.76% 3.57%
</TABLE>
The Economy
Throughout the reporting period, the economy manifested remarkable
strength with few signs of upward price pressure. Measures of consumer
optimism remained near record high levels: Consumer spending, which accounts
for about two-thirds of all economic activity, increased 3.3% in 1997, the
largest gain since 1994. A greater percentage of Americans were employed at
the end of the reporting period than at any time since the government began
recording employment numbers in 1948. Plentiful jobs, low inflation, and low
interest rates have proved to be a winning combination. The unemployment rate
averaged only 4.9% for all of 1997, near a 25-year low. It had been widely
anticipated that such healthy employment conditions would ignite a resurgence
in inflation. Yet throughout this period of dramatic gains in new jobs,
inflation was quiescent. Fears that a tight labor market would result
in inflation-inducing wage hikes were not realized: Instead, enormous
investments in new equipment and technology enabled companies to offset
rising costs with gains in productivity. On the inflation front, the Consumer
Price Index rose only 1.7% in 1997, its smallest annual increase in 11 years,
and almost half the rate of 1996. The Producer Price Index, which measures
inflation at the wholesale level, actually fell 1.2% last year. In 1997, the
economy expanded by 3.8%, the fastest rate since 1988. Such economic growth
without inflation has caused tax revenues at national, state and local levels
to surge, and has resulted in prospects for the first balanced Federal budget
in almost 30 years!
Bond yields ended the reporting period at their lowest levels in decades.
Low inflation and the prospect of reduced Federal borrowing due to the
improved condition of the budget have been a tonic for U.S. credit markets.
Even the economic crisis in Asia has played a role in helping to reduce
interest rates as foreign capital sought a safer investment haven in U.S.
fixed income securities. Meanwhile, the Federal Reserve Board (the "Fed") has
chosen to keep monetary policy steady during the Asian economic turmoil of
the last several months. Of course, the lack of inflation has also played a
major role in staying the Fed's hand from raising interest rates, despite the
surging economy and tightening labor market. The last increase in short-term
rates came in March 1997 when the Federal Open Market Committee (FOMC), the
policy-making arm of the Fed, hiked the Federal Funds rate by one-quarter of
a percent to 5.5%.
That low interest rates have helped stimulate the economy can be seen in
two interest-rate sensitive economic sectors, housing and automobiles, which
have remained strong. Economists estimate that new home sales for 1997 were
at a 19-year high.
The production side of the economy has remained strong. Through year-end,
industrial production had risen for 14 consecutive months. Many economists
(Fed Chairman Alan Greenspan among them) think that the Asian crisis may help
slow our rate of economic growth. If so, it may allow the Fed to refrain from
any monetary tightening over the near term. The dynamics are in place for
such a slowdown. The dollar has risen sharply versus Asian currencies, making
our exports more expensive. Because of this strength in the dollar, imports
to the U.S. from Asia are likely to become cheaper, further dampening
inflation. As Chairman Greenspan said in his testimony to the Senate Budget
Committee, "The likelihood that we shall be seeing some lower prices on
imported goods as a result of the difficulties in Asia may afford some
breathing room from inflation pressures."
Of course, we are mindful that there are factors that can adversely
affect the current, almost ideal economic climate. Wage pressures, still in
check relative to inflation, began to inch higher at the end of the reporting
period. Asian demand may remain stronger than currently anticipated. It is
clear that the almost relentless strength in the economy has been a
continuing concern of the Fed. Another preemptive hike in interest rates
could occur if the economy does not slow.
Market Environment
Against the backdrop of generally favorable fundamental news on the
performance of the nation's economy and relatively subdued inflation reports,
the fixed income markets enjoyed a strong performance during your Fund's most
recent six-month reporting period. While early concerns over mounting
inflationary pressures did send interest rates to their highest levels of the
year at the start of this period, there quickly emerged a school of thought
owing to the evolution of a "new paradigm" of economic growth. Proponents of
this concept hold to the notion that the economy could operate at or near
full capacity with low levels of unemployment without the commensurate
increase in the rate of inflation we have come to expect from past
experiences due to the combined forces of technological advances, which have
significantly increased the productivity of the nation's labor force, and
global competition emanating from the world's emerging economies. As this
concept gathered a following among market participants, prices rose and
yields declined. However, subsequent public comments by Fed Chairman Alan
Greenspan called to question this concept when compared to the weight of
evidence posed by recent economic history. As a result of his comments, bond
prices sold off sharply in early August as market participants returned a
yield premium to valuations in anticipation of a shift to a less
accommodative stance in monetary policy.
The subsequent rise in interest rates proved to be relatively muted,
however, as attention soon shifted from domestic economic affairs to the
rolling series of crises sweeping the emerging markets of Southeast Asia
which culminated in the formal devaluation of the currencies of Thailand,
Malaysia and Indonesia. Concerned over the potentially deflationary impact
these devaluations would have on prices around the globe, investors began to
accumulate fixed income securities as an alternative to the resulting
volatility of the equity markets. As it became apparent that larger, more
established Asian economies like those of South Korea and Japan were not
immune to the troubles sweeping the region, the scope of the problem expanded
and the demand for the perceived "safe haven" of U.S. fixed income securities
pushed yields to their lowest levels of the year.
While buoyed by the same factors throughout the most recent period,
municipal bonds underperformed their taxable counterparts on a relative
basis. 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 period now places municipal bonds as inexpensive
versus taxable alternatives, and as such, poised to outperform in the months
to come.
Portfolio Overview
In managing the Fund in an environment such as this, a decidedly
constructive posture was maintained throughout. Cash reserve positions were
drawn to levels only necessary to fulfill Portfolio liquidity requirements.
Assets were directed toward those insured securities offering both generous
levels of tax free income as well as the potential for significant principal
appreciation as yields declined. In this way, Portfolio duration was
extended to make it more sensitive to a
declining interest rate environment. Throughout this process, we continued
to strive to enhance the liquidity and performance characteristics of the
Fund by extending the optional redemption provisions and improving the
underlying creditworthiness of its holdings.
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 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 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 (annualized), 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
STATEMENT OF INVESTMENTS JANUARY 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments-93.7% Amount Value
____________ ____________
<S> <C> <C>
California-10.7%
California Housing Finance Agency, Revenue 5.70%, 8/1/2016 (Insured; MBIA).. $ 200,000 $ 204,508
California Pollution Control Financing Authority, PCR (Southern California
Edison Co.)
6.40%, 12/1/2024 (Insured; AMBAC)......................................... 400,000 440,960
Contra Costa, COP (Merrithew Memorial Hospital Project)
5.375%, 11/1/2017 (Insured; MBIA)......................................... 750,000 770,003
San Joaquin Hills Transportation Corridor Agency, Highway Revenue, Refunding
Zero Coupon, 1/15/2031 (Insured; MBIA).................................... 2,500,000 466,375
Colorado-1.7%
E-470 Public Highway Authority, Revenue, Refunding
Zero Coupon, 9/1/2016 (Insured; MBIA)..................................... 750,000 296,280
Florida-1.1%
Miami Health Facilities Authority, Health Facility Revenue, Refunding
(Mercy Hospital Project) 5.125%, 8/15/2020 (Insured; AMBAC)............... . 200,000 198,280
Illinois-12.7%
Chicago Midway Airport, Revenue 6.25%, 1/1/2024 (Insured; MBIA)............. 200,000 217,910
Chicago Wastewater Transmission Revenue:
6.375%, 1/1/2024 (Insured; MBIA).......................................... 200,000 224,152
Refunding 5.125%, 1/1/2025 (Insured; FGIC)................................ 1,000,000 994,890
Illinois Health Facilities Authority, Revenue:
(Northwestern Medical Faculty Foundation-Health Care)
6.625%, 11/15/2025 (Insured; MBIA)...................................... 500,000 563,910
Refunding (Lutheran General Health System) 6.25%, 4/1/2018 (Insured; FSA). 200,000 228,228
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)............... 600,000 631,998
Refunding (Community Hospital of Anderson Project) 6%, 1/1/2014 (Insured; MBIA) 1,000,000 1,086,190
Lafayette Redevelopment Authority, Redevelopment Lease Rent
5.95%, 1/1/2020 (Insured; MBIA)........................................... 200,000 215,174
Iowa-1.9%
Clinton, PCR, Refunding (Interstate Power Co. Project)
6.35%, 12/1/2012 (Insured; AMBAC)......................................... 300,000 333,750
Massachusetts-6.1%
Massachusetts Housing Finance Agency, SFHR 6.60%, 12/1/2026 (Insured; AMBAC) 995,000 1,066,381
Mississippi-2.8%
Mississippi Development Bank, Special Obligation (Desoto County Convention
Center Project)
5%, 11/1/2020 (Insured; AMBAC)............................................ 500,000 494,600
Nevada-1.2%
Clark County, Passenger Facility Charge Revenue, Custodial Receipts
(Las Vegas McCarran International Airport) 6.25%, 7/1/2022 (Insured; AMBAC) 200,000 218,006
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
____________ ____________
New Jersey-7.5%
New Jersey Economic Development Authority:
PCR (Public Service Electric & Gas Co.) 6.40%, 5/1/2032 (Insured; MBIA)... $ 200,000 $ 220,178
Water Facilities Revenue (NJ American Water Co., Inc. Project)
6.875%, 11/1/2034 (Insured; FGIC)....................................... 500,000 570,500
New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue
6.375%, 10/1/2026 (Insured; MBIA)......................................... 500,000 530,870
New Mexico-5.8%
Farmington, PCR, Refunding (Southern California Edison Co.)
5.875%, 6/1/2023 (Insured; MBIA).......................................... 750,000 797,872
Santa Fe 6.30%, 6/1/2024 (Insured; AMBAC, Prerefunded 6/1/2004) (a)......... 200,000 223,552
New York-9.9%
Metropolitan Transportation Authority, Dedicated Tax Fund
5.25%, 4/1/2026 (Insured; MBIA)........................................... 1,000,000 1,010,030
New York State Dormitory Authority, Revenue (Mount Sinai Medical School)
5.15%, 7/1/2024 (Insured; MBIA)........................................... 500,000 514,330
New York State Energy, Research and Development Authority, PCR, Refunding
(Rochester Gas & Electric Project) 6.50%, 5/15/2032 (Insured; MBIA)....... 200,000 219,564
North Dakota-1.3%
Grand Forks Health Care Facilities Revenue (United Hospital Obligated Group)
6.25%, 12/1/2019 (Insured; MBIA).......................................... 200,000 222,334
Oklahoma-2.5%
Oklahoma Industries Authority, HR (Baptist Medical Center)
7%, 8/15/2014 (Insured; AMBAC, Prerefunded 8/15/2000) (a)................. 400,000 437,124
Pennsylvania-2.8%
Chester County Health and Educational Facilities Authority, Health System
Revenue
(Jefferson Health System) 5.125%, 5/15/2018 (Insured; AMBAC).............. 500,000 497,155
South Carolina-1.2%
South Carolina Public Service Authority, Revenue, Refunding
6.375%, 7/1/2021 (Insured; AMBAC)......................................... 200,000 219,762
Texas-4.4%
Austin, Airport Systems Revenue 6.125%, 11/15/2025 (Insured; MBIA).......... 500,000 546,430
Gulf Coast Waste Disposal Authority, Revenue, Refunding (Houston Light &
Power Co. Project)
6.375%, 4/1/2012 (Insured; MBIA)......................................... 200,000 220,564
Washington-6.3%
Washington, MFMR (Gilman Meadows Project) 7.40%, 1/1/2030 (Insured; FSA).... 1,000,000 1,107,800
Wisconsin-2.8%
Wisconsin Health and Educational Facilities Authority, Revenue, Refunding
(Aurora Health Care, Inc.) 5.25%, 8/15/2027 (Insured; MBIA)............... 500,000 500,846
____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $15,195,897).................... $16,490,506
============
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) JANUARY 31, 1998 (UNAUDITED)
Principal
Short-Term Municipal Investments-6.3% Amount Value
____________ ____________
New York-2.9%
New York City, VRDN 3.65% (Insured; MBIA) (b)............................... $ 500,000 $ 500,000
Texas-3.4%
Brazos River Authority, PCR, Refunding (Texas Utilities Electric Co.) VRDN
3.70% (Insured; MBIA) (b)................................................. 600,000 600,000
____________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $1,100,000).................... $ 1,100,000
============
TOTAL INVESTMENTS-100.0% (cost $16,295,897)................................. $ 17,590,506
============
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MFMR Multi-Family Mortgage Revenue
COP Certificate of Participation PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Company SFHR Single Family Housing Revenue
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
HR Hospital Revenue
MBIA Municipal Bond Investors Assurance
Insurance Corporation
Summary of Combined Ratings
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
_______ _________ ________________ _________________
AAA Aaa AAA 93.7%
F-1, F-1+ VMIG1, MIG1 SP1 6.3
_______
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 January 31, 1998, 56.0% of the Fund's net assets are insured by
MBIA and 26.9% are insured by AMBAC.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1998 (UNAUDITED)
Cost Value
____________ ___________
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $16,295,897 $17,590,506
Interest receivable........................ 199,517
Prepaid expenses........................... 39,871
Due from The Dreyfus Corporation........... 4,009
____________
17,833,903
____________
LIABILITIES: Due to Distributor......................... 8,021
Cash overdraft due to custodian............ 67,010
Payable for shares of Beneficial Interest redeemed 7,239
Accrued expenses and other liabilities..... 26,796
____________
109,066
____________
NET ASSETS.................................................................. $17,724,837
============
REPRESENTED BY: Paid-in capital............................ $16,283,273
Accumulated net realized gain (loss) on investments 146,955
Accumulated gross unrealized appreciation on
investments ........................................... 1,294,609
____________
NET ASSETS.................................................................. $17,724,837
============
NET ASSET VALUE PER SHARE
__________________________
Class A Class B Class C
____________ ____________ ____________
Net Assets.................................................. $7,821,416 $9,891,909 $11,512
Shares Outstanding.......................................... 569,598 720,167 838
NET ASSET VALUE PER SHARE................................... $13.73 $13.74 $13.74
======= ======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED JANUARY 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income............................ $503,950
EXPENSES: Management fee-Note 3(a)................... $ 49,141
Shareholder servicing costs-Note 3(c)...... 28,312
Registration fees.......................... 25,048
Distribution fees-Note 3(b)................ 25,011
Auditing fees.............................. 18,868
Trustees' fees and expenses-Note 3(d)...... 9,241
Legal fees................................. 7,326
Prospectus and shareholders' reports....... 2,913
Custodian fees............................. 764
Loan commitment fees-Note 2................ 30
Miscellaneous.............................. 9,122
_________
Total Expenses....................... 175,776
Less-reduction in management fee due to
undertaking-Note 3(a).................. (40,144)
_________
Net Expenses......................... 135,632
_________
INVESTMENT INCOME-NET....................................................... 368,318
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $166,602
Net unrealized appreciation (depreciation) on investments 154,007
_________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 320,609
_________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $688,927
=========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
January 31, 1998 Year Ended
(Unaudited) July 31, 1997
________________ _____________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................. $ 368,318 $ 800,204
Net realized gain (loss) on investments............................... 166,602 49,319
Net unrealized appreciation (depreciation) on investments............. 154,007 683,061
____________ ____________
Net Increase (Decrease) in Net Assets Resulting from Operations. 688,927 1,532,584
____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares...................................................... (173,524) (369,967)
Class B shares...................................................... (194,768) (430,199)
Class C shares...................................................... (26) (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................................................. (437,165) (892,012)
____________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares...................................................... 341,921 607,447
Class B shares...................................................... 354,142 1,347,382
Class C shares...................................................... 10,398 ----
Dividends reinvested:
Class A shares...................................................... 127,837 257,949
Class B shares...................................................... 153,490 330,335
Class C shares...................................................... 16 43
Cost of shares redeemed:
Class A shares...................................................... (848,499) (1,471,651)
Class B shares...................................................... (976,323) (2,672,018)
____________ ____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (837,018) (1,600,513)
____________ ____________
Total Increase (Decrease) in Net Assets....................... (585,256) (959,941)
NET ASSETS:
Beginning of Period................................................... 18,310,093 19,270,034
____________ ____________
End of Period......................................................... $17,724,837 $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
________________________________
Six Months Ended
January 31, 1998 Year Ended
(Unaudited) July 31, 1997
________________ _____________
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold............................................................ 25,181 46,183
Shares issued for dividends reinvested................................. 9,465 19,586
Shares redeemed........................................................ (62,950) (111,584)
________ ________
Net Increase (Decrease) in Shares Outstanding (28,304) (45,815)
======== ========
Class B
________
Shares sold............................................................ 26,281 102,444
Shares issued for dividends reinvested................................. 11,359 25,069
Shares redeemed........................................................ (72,458) (203,605)
________ ________
Net Increase (Decrease) in Shares Outstanding (34,818) (76,092)
======== ========
Class C
________
Shares sold............................................................ 758 ---
Shares issued for dividends reinvested................................. 1 3
________ ________
Net Increase (Decrease) in Shares Outstanding 759 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
______________________________________________________
Six Months Ended
January 31, 1998 Year Ended July 31,
____________________________________
PER SHARE DATA: (Unaudited) 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........................ .30 .60 .63 .77 .18
Net realized and unrealized gain (loss)
on investments............................. .25 .53 .08 .07 .44
_______ _______ _______ _______ _______
Total from Investment Operations............. .55 1.13 .71 .84 .62
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income-net......... (.30) (.60) (.63) (.77) (.18)
Dividends from net realized gain on investments (.05) (.06) (.03) --- ---
_______ _______ _______ _______ _______
Total Distributions.......................... (.35) (.66) (.66) (.77) (.18)
_______ _______ _______ _______ _______
Net asset value, end of period............... $13.73 $13.53 $13.06 $13.01 $12.94
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN (2)...................... 8.25%(3) 8.91% 5.56% 6.86% 4.99%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.23%(3) 1.24% 1.17% .08% ---
Ratio of net investment income
to average net assets...................... 4.41%(3) 4.54% 4.80% 6.02% 5.44%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .45%(3) .14% .13% 1.25% 2.50%(3)
Portfolio Turnover Rate...................... 15.20%(4) 44.50% 29.73% 9.17% ---
Net Assets, end of period (000's Omitted).... $7,821 $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) Annualized.
(4) Not 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
______________________________________________________
Six Months Ended
January 31, 1998 Year Ended July 31,
____________________________________
PER SHARE DATA: (Unaudited) 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........................ .27 .53 .57 .71 .16
Net realized and unrealized gain (loss)
on investments............................. .26 .52 .09 .06 .45
_______ _______ _______ _______ _______
Total from Investment Operations............. .53 1.05 .66 .77 .61
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income-net......... (.27) (.53) (.57) (.71) (.16)
Dividends from net realized gain on investments (.05) (.06) (.03) --- ---
_______ _______ _______ _______ _______
Total Distributions.......................... (.32) (.59) (.60) (.71) (.16)
_______ _______ _______ _______ _______
Net asset value, end of period............... $13.74 $13.53 $13.07 $13.01 $12.95
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN (2)...................... 7.88%(3) 8.28% 5.09% 6.24% 4.94%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.74%(3) 1.75% 1.68% .59% .50%(3)
Ratio of net investment income
to average net assets...................... 3.89%(3) 4.03% 4.28% 5.51% 4.90%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .45%(3) .14% .13% 1.27% 2.50%(3)
Portfolio Turnover Rate...................... 15.20%(4) 44.50% 29.73% 9.17% ---
Net Assets, end of period (000's Omitted).... $9,892 $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) Annualized.
(4) Not 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
____________________________________________
Six Months Ended
January 31, 1998 Year Ended July 31,
_____________________
PER SHARE DATA: (Unaudited) 1997 1996(1)
__________ ______ ______
<S> <C> <C> <C>
Net asset value, beginning of period....................... $13.54 $13.07 $13.53
______ ______ ______
Investment Operations:
Investment income-net...................................... .25 .50 .34
Net realized and unrealized gain (loss)
on investments........................................... .25 .53 (.43)
______ ______ ______
Total from Investment Operations........................... .50 1.03 (.09)
______ ______ ______
Distributions:
Dividends from investment income-net....................... (.25) (.50) (.34)
Dividends from net realized gain on investments............ (.05) (.06) (.03)
______ ______ ______
Total Distributions........................................ (.30) (.56) (.37)
______ ______ ______
Net asset value, end of period............................. $13.74 $13.54 $13.07
====== ====== ======
TOTAL INVESTMENT RETURN (2).................................... 7.46%(3) 8.07% (.94%)(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................... 2.00%(3) 2.00% 2.08%(3)
Ratio of net investment income
to average net assets.................................... 3.68%(3) 3.70% 3.84%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager....................... .85%(3) .11% 1.17%(3)
Portfolio Turnover Rate.................................... 15.20%(4) 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.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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
("CDSD") 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 principals 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.
(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.
(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
DREYFUS PREMIER INSURED MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 January 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 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 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,
commitment fees and extraordinary expenses) exceed 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 fees paid by, 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 net assets. The reduction
in management fee, pursuant to the undertaking, amounted to $40,144 during
the period ended January 31, 1998.
(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, 1998,
the Fund was charged $25,006 and $5 for Class B and Class C shares,
respectively, pursuant to the Distribution Plan.
(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,
1998, the Fund was charged $9,832, $12,503 and $2 for Class A, Class B and
Class C shares, 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 January 31, 1998, the Fund was charged $4,172 pursuant to the
transfer agency agreement.
(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 January 31, 1998
amounted to $2,595,165 and $3,818,923, respectively.
At January 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
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. 128/376/SA981
Semi-Annual Report
Dreyfus Premier
Insured Municipal
Bond Fund
January 31, 1998
Registration Mark
[Dreyfus lion 2/hres logo]
