-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, VjL9biXq7JitsLft4P0rh51iiyQxBBMNhqkcs3+wtzBHPXbl/sI3vwH/l8kNJiW8 W8N39zi/TgaB15+cCoWOdg== 0000804260-95-000003.txt : 19950609 0000804260-95-000003.hdr.sgml : 19950609 ACCESSION NUMBER: 0000804260-95-000003 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950303 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND CENTRAL INDEX KEY: 0000804260 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04884 FILM NUMBER: 95518397 BUSINESS ADDRESS: STREET 1: 144 GLENN CURTISS BLVD CITY: UNIONDALE STATE: NY ZIP: 11556 BUSINESS PHONE: 2129226798 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 N-30D 1 ANNUAL REPORT LETTER TO SHAREHOLDERS Dear Shareholder: As the Dreyfus New York Insured Tax Exempt Bond Fund ended its annual reporting period on December 31, 1994, its net asset value was $10.66 per share. Income dividends of approximately $.59 per share were paid during this period, representing an annualized distribution rate per share of 5.59% based on the December 31, 1994 net asset value. In addition, we are pleased to report that all dividends paid from net investment income during this period were exempt from Federal, New York State and New York City income taxes, although certain shareholders may be subject to the Federal Alternative Minimum Tax on some portfolio income. The municipal market continued its decline over the reporting period as the economy continued to grow and, with that, inflationary fears increased. The bond market experienced one of its worst declines ever during 1994, as the Federal Reserve Board took measures on six occasions during the year to prevent a surge in inflation. While some acceleration in the economy had been expected, the robust growth experienced over the past year was clearly a surprise to most economists and market participants alike. It had been anticipated that the higher interest rates engendered by the Federal Reserve Board's tighter monetary policy, beginning in the first quarter of 1994, would clearly slow economic expansion by year-end. Before the writing of this letter, there were few signs that the economy was slowing. In fact, a wide array of economic indexes was showing growth at levels that have proven to be accurate forecasters of upward inflationary trends in past recoveries. However, some signs of a potential slowing in economic growth did emerge with recently released December data. For example, durable goods orders declined .1% in December after a modest .2% rise in November. Also, retail sales fell .1% in December, following an increase of 7.6% for the year (which was the strongest annual showing in 10 years). The case for a dramatic slowing of the economy has yet to be made, however. Housing starts, reported by the Commerce Department for November, rose to their highest level in eight months. In addition, job gains remain strong as the unemployment rate in December fell to 5.4%, which was the lowest rate in over four years. Capacity utilization rates have risen rapidly and are now near the peak level of the last cycle. Lastly, commodity prices continue on a volatile but upward path when compared to the past several years. There are some positive signs that the economy, while growing at a nearly 4% annual rate, may be able to avoid an inflationary surge. For example, the increases in commodity prices have as yet not been evident in prices paid by the consumer, but it may only be a matter of time before this occurs. Wage inflation also remains practically nonexistent, but traditionally lags a strong economic upsurge. Another positive sign that the economy may be able to avoid inflation is the flattening yield curve for government securities. This generally is evidence that the market believes that the economy will slow in the coming months, making longer-maturity securities more attractive. Currently, the Federal Reserve Board has to consider the policy implication of such events as the difficulties of Orange County, California and the devaluation of the Mexican peso with the resultant instability in the currency markets. However, once these matters have stabilized, and should signs of wage and/or consumer price inflation materialize, we anticipate that the Fed will move again to stymie inflation. As mentioned previously, 1994 was a very difficult year for fixed-income securities with negative rates of return the norm. Few participants anticipated the negative degree to which the markets would react to Federal Reserve rate action. During this time, your portfolio performed well relative to more aggressively positioned portfolios, while its performance overall placed it in the mid-range of similar New York funds. We have historically favored a high-coupon structure in your portfolio in order to provide the most attractive level of tax exempt income. We continued to emphasize triple-A insured, high-coupon securities during this period and this strategy served well as the market declined. A portfolio with a high-coupon profile tends to decline less than more aggressive, low-coupon portfolios as the market reacts to rising interest rates. Going forward, our strategy continues to be one of caution. We believe that inflationary pressures may rise in the coming months, but that vigilance by the Fed will limit these increases and that interest rates will peak by midyear. It is our belief that returns in the coming year will be largely driven by coupon income and therefore we will continue to emphasize those securities providing attractive levels of income. We have provided a current Statement of Investments and recent financial statements for your review. We greatly appreciate your investment in the Fund and look forward to serving your investment needs in the future. Very truly yours, Richard J. Moynihan Director, Municipal Portfolio Management The Dreyfus Corporation January 16, 1995 New York, N.Y.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND DECEMBER 31, 1994 COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX [Exhibit A] *Source: Lehman Brothers AVERAGE ANNUAL TOTAL RETURNS ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (2/18/87) DECEMBER 31, 1994 DECEMBER 31, 1994 TO DECEMBER 31, 1994 --------------------- --------------------- --------------------------- (6.62%) 6.16% 4.47%
Past performance is not predictive of future performance. The above graph compares a $10,000 investment made in Dreyfus New York Insured Tax Exempt Bond Fund on 2/18/87 (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 2/28/87 is used as the beginning value on 2/18/87. All dividends and capital gain distributions are reinvested. As of December 31, 1994, the Fund is invested solely in New York municipal securities which are insured, and its performance reflects the deduction of 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 as representative of the market. The Index does not take into account fees and other expenses, nor is it composed of only insured securities. Further information relating to Fund performance, including expense reimbursements, if applicable, is contained in the Condensed Financial Information section of the Prospectus and elsewhere in this report.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND STATEMENT OF INVESTMENTS DECEMBER 31, 1994 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS--100.0% AMOUNT VALUE -------------- -------------- Briarcliff Manor (Water Improvement) 6%, 9/1/2013 (Insured; FGIC)........... $ 175,000 $ 167,233 Broome County, COP, Public Safety Facility 5.25%, 4/1/2022 (Insured; MBIA)......................................... 3,875,000 3,138,130 East Rockaway Union Free School District 6.10%, 9/1/2012 (Insured; FGIC).... 100,000 97,098 Havestraw-Stony Point Central School District: 6.10%, 6/15/2001 (Insured; MBIA)........................................ 15,000 15,360 6.10%, 6/15/2002 (Insured; MBIA)........................................ 15,000 15,342 Metropolitan Transportation Authority: Commuter Facility, Refunding (Service Contract) 7.50%, 7/1/2017 (Insured; AMBAC)...................................... 1,000,000 1,044,700 Transit Facility Revenue: 7%, 7/1/2009 (Insured; AMBAC)......................................... 5,400,000 5,750,622 6%, 7/1/2016 (Insured; AMBAC)......................................... 3,250,000 3,024,125 5%, 7/1/2017 (Insured; BIGI).......................................... 60,000 48,349 6.50%, 7/1/2018 (Insured; FGIC)....................................... 4,000,000 3,952,520 New York City: 7%, 8/1/2006 (Insured; MBIA)............................................ 660,000 695,389 7%, 8/1/2006 (Insured; MBIA)............................................ 340,000 352,716 7.25%, 3/15/2018 (Insured; FSA)......................................... 1,000,000 1,031,470 6%, 8/1/2018 (Insured; FSA)............................................. 4,900,000 4,501,287 New York City Housing Development Corp., General Housing 5.80%, 5/1/2002 (Insured; AMBAC)........................................ 400,000 397,608 New York City Municipal Water Finance Authority, Water and Sewer System Revenue: 6.50%, 6/15/1997 (Insured; AMBAC) (Prerefunded 6/15/1997) (a)........... 260,000 270,707 7.625%, 6/15/2017 (Insured; FGIC) (Prerefunded 6/15/1998) (a)........... 1,500,000 1,625,130 6%, 6/15/2019 (Insured; FSA)............................................ 2,300,000 2,126,994 6.20%, 6/15/2021 (Insured; AMBAC)....................................... 2,000,000 1,890,920 6.50%, 6/15/2021 (Insured; AMBAC)....................................... 2,240,000 2,184,717 5.50%, 6/15/2023 (Insured; MBIA)........................................ 5,000,000 4,241,550 New York City Transit Authority, Transit Facility Revenue (Livingston Plaza Project) 6%, 1/1/2021 (Insured; FSA).................. 5,300,000 4,839,960 New York State 7.10%, 3/1/2020 (Insured; AMBAC)............................. 1,650,000 1,690,640 New York State Dormitory Authority, Revenue: (City University) 6.30%, 7/1/2024 (Insured; AMBAC)...................... 2,800,000 2,667,084 (Colgate University) 6.50%, 7/1/2021 (Insured; MBIA).................... 4,000,000 3,950,200 (International House) 7.60%, 7/1/2009 (Insured; FGIC)................... 2,000,000 2,145,040 (New York University) 6%, 7/1/2015 (Insured; FGIC)...................... 1,750,000 1,638,508 (Refunding - Ithaca College) 6.25%, 7/1/2021 (Insured; MBIA)............ 2,000,000 1,920,140 (Refunding - Mount Sinai School of Medicine): 6.75%, 7/1/2009 (Insured; MBIA)....................................... 3,000,000 3,087,810 5%, 7/1/2021 (Insured; MBIA).......................................... 1,000,000 787,410 (State University Educational) 7.25%, 5/15/2015 (Insured; FGIC) (Prerefunded 5/15/2000) (a)........................................... 1,000,000 1,093,860 DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE -------------- -------------- New York State Energy Research and Development Authority, Revenue: Facilities (Con Edison Co. of New York Inc. Project): Refunding 5.25%, 8/15/2020 (Insured; MBIA)........................ $ 4,800,000 $ 3,882,912 6.375%, 12/1/2027 (Insured; MBIA)................................. 5,000,000 4,721,700 6%, 3/15/2028 (Insured; MBIA)..................................... 4,000,000 3,580,000 Pollution Control: (Central Hudson Gas and Electric) 7.375%, 10/1/2014 (Insured; FGIC)................................. 1,700,000 1,788,417 (Refunding - Niagara Mohawk Power Corp.) 6.625%, 10/1/2013 (Insured; FGIC)................................. 4,500,000 4,518,630 (Refunding - Rochester Gas and Electric Project) 6.50%, 5/15/2032 (Insured; MBIA).................................. 9,800,000 9,389,380 New York State Environmental Facility Corp., Water Facilities Revenue (Jamaica Water Supply Province) 7.625%, 4/1/2029 (Insured; AMBAC)....... 4,000,000 4,188,720 New York State Housing Finance Agency, Multi-Family Housing Revenue 7.45%, 11/1/2028 (Insured; AMBAC)....................................... 2,000,000 2,047,940 New York State Medical Care Facilities Finance Agency, Revenue: (Aurelia Osborn Fox Memorial Hospital) 6.50%, 11/1/2019 (Insured; FSA) 3,000,000 2,941,710 (Buffalo General Hospital) 7.70%, 2/15/2022 (Insured; MBIA)........... 1,000,000 1,059,270 (Hospital and Nursing Home) 7.60%, 2/15/2029 (Insured; MBIA).......... 2,000,000 2,100,220 (Mental Health Service Facilities Improvement): 7.625%, 2/15/1998 (Insured; MBIA) (Prerefunded 2/15/1998) (a)..... 1,055,000 1,137,849 7.625%, 2/15/2008 (Insured; MBIA)................................. 945,000 1,001,284 6.25%, 8/15/2018 (Insured; AMBAC)................................. 4,820,000 4,605,173 7.375%, 8/15/2019 (Insured; MBIA)................................. 1,345,000 1,398,235 7.375%, 8/15/2019 (Insured; MBIA) (Prerefunded 8/15/1999) (a)..... 785,000 854,849 (North Shore University Hospital Mortgage Project) 7.20%, 11/1/2020 (Insured; MBIA).................................. 5,750,000 5,911,747 (Saint Francis Hospital Project) 7.625%, 11/1/2021 (Insured; FGIC).... 1,785,000 1,879,908 (Sisters of Charity Hospital) 6.625%, 11/1/2018 (Insured; AMBAC)...... 2,000,000 1,996,180 New York State Mortgage Agency, Revenue (Homeownership Mortgage): 7.50%, 4/1/2016 (Insured; MBIA)......................................... 2,785,000 2,873,062 7.50%, 10/1/2017 (Insured; MBIA)........................................ 1,500,000 1,551,765 New York State Power Authority 7.875%, 1/1/2013 (Insured; MBIA)............. 1,850,000 1,968,178 New York State Urban Development Corp., Revenue (Correctional Facilities): 7.50%, 1/1/2012 (Insured; AMBAC) (Prerefunded 1/1/1998) (a)............. 2,000,000 2,151,960 7.75%, Series C, 1/1/2013 (Insured; AMBAC) (Prerefunded 1/1/1998) (a)... 1,000,000 1,082,830 7.75%, Series D, 1/1/2013 (Insured; AMBAC) (Prerefunded 1/1/1998) (a)... 1,250,000 1,349,550 Port Authority of New York and New Jersey: 5.875%, 7/15/2018 (Insured; MBIA)....................................... 3,600,000 3,246,588 6.25%, 1/15/2027 (Insured; AMBAC)....................................... 2,000,000 1,881,840 Triborough Bridge and Tunnel Authority, Special Obligation Refunding: 6%, 1/1/2015 (Insured; AMBAC)........................................... 4,000,000 3,756,640 6.875%, 1/1/2015 (Insured; FGIC)........................................ 3,000,000 3,059,970 DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE -------------- -------------- Triborough Bridge and Tunnel Authority, Special Obligation Refunding (continued): 6%, 1/1/2019 (Insured; MBIA)............................................ $ 3,000,000 $ 2,784,630 Yonkers 7.80%, 8/1/2009 (Insured; FGIC)..................................... 2,900,000 3,174,543 -------------- TOTAL INVESTMENTS (cost $148,929,705)..................................................... $148,278,299 ==============
SUMMARY OF ABBREVIATIONS AMBAC American Municipal Bond Assurance Corporation FGIC Financial Guaranty Insurance Company BIGI Bond Investors Guaranty Insurance FSA Financial Security Assurance COP Certificate of Participation MBIA Municipal Bond Investors Assurance
SUMMARY OF COMBINED RATINGS (UNAUDITED) FITCH (B) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE - --------- --------- -------------------- ----------------------- AAA Aaa AAA 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) Fitch currently provides creditworthiness information for a limited number of investments. (c) At December 31, 1994, 27.7% of the Fund's net assets are insured by AMBAC and 43.3% are insured by MBIA. See notes to financial statements.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1994 ASSETS: Investments in securities, at value (cost $148,929,705)-see statement..................................... $148,278,299 Interest receivable..................................................... 3,300,683 Receivable for shares of Beneficial Interest subscribed................. 440,000 Prepaid expenses........................................................ 6,620 -------------- 152,025,602 LIABILITIES: Due to The Dreyfus Corporation.......................................... $ 77,202 Due to Custodian........................................................ 110,096 Due to Distributor...................................................... 32,500 Payable for shares of Beneficial Interest redeemed...................... 23,027 Accrued expenses........................................................ 86,869 329,694 ---------- -------------- NET ASSETS ................................................................ $151,695,908 ============== REPRESENTED BY: Paid-in capital......................................................... $153,624,538 Accumulated undistributed investment income_net......................... 23,283 Accumulated net realized (loss) on investments.......................... (1,300,507) Accumulated net unrealized (depreciation) on investments_Note 3......... (651,406) -------------- NET ASSETS at value applicable to 14,233,013 shares outstanding (unlimited number of $.001 par value shares of Beneficial Interest authorized).................................................... $151,695,908 ============== NET ASSET VALUE, offering and redemption price per share ($151,695,908 / 14,233,013 shares)...................................... $10.66 =======
See notes to financial statements.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994 INVESTMENT INCOME: INTEREST INCOME......................................................... $ 10,844,143 EXPENSES: Management fee_Note 2(a).............................................. $ 1,034,322 Shareholder servicing costs_Note 2(b)................................. 529,247 Professional fees..................................................... 45,703 Trustees' fees and expenses_Note 2(c)................................. 26,137 Prospectus and shareholders' reports_Note 2(b)........................ 21,479 Custodian fees........................................................ 17,446 Registration fees..................................................... 6,288 Miscellaneous......................................................... 18,444 -------------- 1,699,066 Less-reimbursement of prospectus costs-Note 2(b)...................... 11,132 -------------- TOTAL EXPENSES.................................................. 1,687,934 -------------- INVESTMENT INCOME--NET.......................................... 9,156,209 REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS: Net realized (loss) on investments_Note 3............................... $ (1,233,401) Net unrealized (depreciation) on investments............................ (20,566,482) -------------- NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (21,799,883) -------------- NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(12,643,674) ==============
See notes to financial statements.
DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED DECEMBER 31, -------------------------------- 1993 1994 -------------- -------------- OPERATIONS: Investment income--net.................................................. $ 9,829,107 $ 9,156,209 Net realized gain (loss) on investments................................. 2,913,561 (1,233,401) Net unrealized appreciation (depreciation) on investments for the year.. 7,896,383 (20,566,482) -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... 20,639,051 (12,643,674) -------------- -------------- DIVIDENDS TO SHAREHOLDERS: From investment income--net............................................. (9,829,107) (9,132,926) From net realized gain on investments................................... (3,513,228) ___ In excess of net realized gain on investments........................... (67,106) ___ -------------- -------------- TOTAL DIVIDENDS....................................................... (13,409,441) (9,132,926) -------------- -------------- BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from shares sold........................................... 92,107,533 38,170,749 Dividends reinvested.................................................... 9,955,907 6,467,485 Cost of shares redeemed................................................. (91,361,631) (69,423,052) -------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS 10,701,809 (24,784,818) -------------- -------------- TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 17,931,419 (46,561,418) NET ASSETS: Beginning of year....................................................... 180,325,907 198,257,326 -------------- -------------- End of year (including undistributed investment income--net; $23,283 in 1994) $198,257,326 $151,695,908 ============== ============== SHARES SHARES -------------- -------------- CAPITAL SHARE TRANSACTIONS: Shares sold............................................................. 7,690,615 3,391,665 Shares issued for dividends reinvested.................................. 826,830 579,744 Shares redeemed......................................................... (7,602,611) (6,202,246) -------------- -------------- TOTAL INCREASE (DECREASE) IN SHARES OUTSTANDING....................... 914,834 (2,230,837) ============== ==============
See notes to financial statements.
DREYFUS NEW YORK INSURED TAX EXEMPT 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 year indicated. This information has been derived from the Fund's financial statements. YEAR ENDED DECEMBER 31, ------------------------------------------------------------ PER SHARE DATA: 1990 1991 1992 1993 1994 ------- ------- ------- ------- ------- Net asset value, beginning of year........... $10.75 $10.64 $11.33 $11.60 $12.04 ------- ------- ------- ------- ------- INVESTMENT OPERATIONS: Investment income--net....................... .72 .66 .63 .60 .60 Net realized and unrealized gain (loss) on investments............................. (.11) .69 .31 .66 (1.39) ------- ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS........... .61 1.35 .94 1.26 (.79) ------- ------- ------- ------- ------- DISTRIBUTIONS: Dividends from investment income--net........ (.72) (.66) (.63) (.60) (.59) Dividends from net realized gain on investments -- -- (.04) (.22) -- Dividends in excess of net realized gain on investments -- -- -- -- -- ------- ------- ------- ------- ------- TOTAL DISTRIBUTIONS........................ (.72) (.66) (.67) (.82) (.59) ------- ------- ------- ------- ------- Net asset value, end of year................. $10.64 $11.33 $11.60 $12.04 $10.66 ====== ====== ====== ====== ====== TOTAL INVESTMENT RETURN 5.91% 13.06% 8.55% 11.08% (6.62%) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets...... .50% .88% .90% .96% .98% Ratio of net investment income to average net assets 6.74% 6.01% 5.49% 5.01% 5.31% Decrease reflected in above expense ratios due to undertakings by the Manager......... .61% .17% .11% .02% .01% Portfolio Turnover Rate...................... 63.12% 15.95% 16.12% 19.89% 12.79% Net Assets, end of year (000's Omitted)...... $92,259 $147,527 $180,326 $198,257 $151,696
See notes to financial statements. DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND NOTES TO FINANCIAL STATEMENTS NOTE 1--SIGNIFICANT ACCOUNTING POLICIES: The Fund is registered under the Investment Company Act of 1940 ("Act") as a non-diversified open-end management investment company. Dreyfus Service Corporation, until August 24, 1994, acted as the distributor of the Fund's shares, which are sold to the public without a sales load. Dreyfus Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation ("Manager"). Effective August 24, 1994, the Manager became a direct subsidiary of Mellon Bank, N.A. On August 24, 1994, Premier Mutual Fund Services, Inc. (the "Distributor") was engaged as the Fund's distributor. The Distributor, located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of Institutional Administration Services, Inc., a provider of mutual fund administration services, the parent company of which is Boston Institutional Group, Inc. (A) PORTFOLIO VALUATION: The Fund's investments 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. (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. The Fund follows an investment policy of investing primarily in municipal obligations of one state. Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the Fund. (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, 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. DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) The Fund has an unused capital loss carryover of approximately of $1,300,000 available for Federal income tax purposes to be applied against future net securities profit, if any, realized subsequent to December 31, 1994. If not applied, the carryover expires in fiscal 2002. NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES: (A) Pursuant to a management agreement ("Agreement") with the Manager, the management fee is computed at the annual rate of .60 of 1% of the average daily value of the Fund's net assets and is payable monthly. The Agreement provides for an expense reimbursement from the Manager should the Fund's aggregate expenses, exclusive of taxes, interest on borrowings, brokerage and extraordinary expenses, exceed 1 1/2% of the average daily value of the Fund's net assets for any full year. There was no expense reimbursement for the year ended December 31, 1994. (B) On August 3, 1994, Fund shareholders approved a revised Service Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the Plan, effective August 24, 1994, the Fund (a) reimburses the Distributor for payments to certain Service Agents for distributing the Fund's shares and servicing shareholder accounts and (b) pays the Manager, Dreyfus Service Corporation or any affiliate (collectively "Dreyfus") for advertising and marketing relating to the Fund and servicing shareholder accounts, at an aggre gate annual rate of .25 of 1% of the value of the Fund's average daily net assets. Each of the Distributor and Dreyfus may pay Service Agents (a securities dealer, financial institution or other industry professional) a fee in respect of the Fund's shares owned by shareholders with whom the Service Agent has a servicing relationship or for whom the Service Agent is the dealer or holder of record. Each of the Distributor and Dreyfus determine the amounts to be paid to Service Agents to which it will make payments and the basis on which such payments are made. The Plan also separately provides for the Fund to bear the costs of preparing, printing and distributing certain of the Fund's prospectuses and statements of additional information and costs associated with implementing and operating the Plan, not to exceed the greater of $100,000 or .005 of 1% of the Fund's average daily net assets for any full year. Prior to August 24, 1994, the Fund's Service Plan ("prior Service Plan") provided that the Fund pay Dreyfus Service Corporation at an annual rate of .25 of 1% of the value of the Fund's average daily net assets, for costs and expenses in connection with advertising, marketing and distributing the Fund's shares and for servicing shareholder accounts. Dreyfus Service Corporation made payments to one or more Service Agents based on the value of the Fund's shares owned by clients of the Service Agent. The prior Service Plan also separately provided for the Fund to bear the costs of preparing, printing and distributing certain of the Fund's prospectuses and statements of additional information and costs associated with implementing and operating the prior Service Plan, not to exceed the greater of $100,000 or .005 of 1% of the Fund's average daily net assets for any full year. During the year ended December 31, 1994, $145,904 was charged to the Fund pursuant to the Plan, of which $3,965 was waived by the Manager and $296,195 was charged to the Fund pursuant to the prior Service Plan, of which $7,167 was waived by the Manager. DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) (C) Prior to August 24, 1994, certain officers and trustees of the Fund were "affiliated persons," as defined in the Act, of the Manager and/or Dreyfus Service Corporation. Each trustee who is not an "affiliated person" receives an annual fee of $2,500 and an attendance fee of $250 per meeting. NOTE 3--SECURITIES TRANSACTIONS: The aggregate amount of purchases and sales of investment securities amounted to $44,425,370 and $64,512,440, respectively, for the year ended December 31, 1994, and consisted entirely of long-term and short-term municipal investments. At December 31, 1994, accumulated net unrealized depreciation on investments was $651,406, consisting of $3,836,711 gross unrealized appreciation and $4,488,117 gross unrealized depreciation. At December 31, 1994, 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 NEW YORK INSURED TAX EXEMPT BOND FUND REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS SHAREHOLDERS AND BOARD OF TRUSTEES DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND We have audited the accompanying statement of assets and liabilities of Dreyfus New York Insured Tax Exempt Bond Fund, including the statement of investments, as of December 31, 1994, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1994 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 New York Insured Tax Exempt Bond Fund at December 31, 1994, 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 February 3, 1995 DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND IMPORTANT TAX INFORMATION (UNAUDITED) In accordance with Federal tax law, the Fund hereby designates all the dividends paid from investment income--net during the fiscal year ended December 31, 1994 as "exempt--interest dividends" (not subject to regular Federal and, for individuals who are New York residents, New York State and New York City personal income taxes). (Dreyfus `D' Logo) DREYFUS NEW YORK INSURED TAX EXEMPT 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 The Shareholder Services Group, Inc. P.O. Box 9671 Providence, RI 02940 Further information is contained in the Prospectus, which must precede or accompany this report. Printed in U.S.A. 577AR9412 (Dreyfus Logo) New York Insured Tax Exempt Bond Fund Annual Report December 31, 1994 (Dreyfus Lion Logo) EX-99.A 2 TABLE FOR GRAPH IN PRESIDENT'S LETTER COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS NEW YORK INSURED TAX EXEMPT BOND FUND AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX EXHIBIT A: _______________________________________________________________ | | | | | | | | | PERIOD | LEHMAN BROTHERS | DREYFUS NEW YORK | | | MUNICIPAL | INSURED TAX EXEMPT| | | BOND INDEX * | BOND FUND | |----------------| -----------------| ------------------| | 2/18/87 | 10,000 | 10,000 | | 12/31/87 | 9,806 | 8,643 | | 12/31/88 | 10,802 | 9,622 | | 12/31/89 | 11,968 | 10,464 | | 12/31/90 | 12,840 | 11,082 | | 12/31/91 | 14,399 | 12,530 | | 12/31/92 | 15,668 | 13,601 | | 12/31/93 | 17,593 | 15,108 | | 12/31/94 | 16,683 | 14,108 | |--------------------------------------------------------------| *Source: Lehman Brothers -----END PRIVACY-ENHANCED MESSAGE-----