DESCRIPTION OF ART WORK ON REPORT COVER
Small box above fund name showing a lions face.
DEAR SHAREHOLDER,
We are pleased to provide you with the Dreyfus Special Growth Fund's Semi-
Annual Report for the six months ended June 30, 1995.
In the pages that follow, we have provided you with a description of the
market environment, a commentary on the Fund's investment strategy and de-
tailed financial statements for the past six months.
As you know, the Fund has been integrated into The Dreyfus Family of
Funds. We hope that you found this transition from The Laurel Funds to The
Dreyfus Family of Funds to be a smooth one. The extended family of funds
now offers you more investment alternatives in addition to expanded ser-
vices and privileges to better serve your investment needs.
We would like to extend our appreciation for your support of The Dreyfus
Family of Funds and hope that the Fund will continue to satisfy your in-
vestment needs. As always, we welcome your thoughts and suggestions.
Sincerely,
Marie E. Connolly
Marie E. Connolly
President
The Dreyfus/Laurel Funds Trust --
Dreyfus Special Growth Fund
August 18, 1995
TABLE OF CONTENTS
Shareholder Letter 1
Economic Review 3
Portfolio Overview 4
Portfolio of Investments 6
Statement of Assets and Liabilities 10
Statement of Operations 11
Statement of Changes in Net Assets 12
Financial Highlights 14
Notes to Financial Statements 17
ECONOMIC REVIEW
THE ECONOMIC SLOWDOWN IS MARKED BUT NOT RECESSIONARY
The economic slowdown long hoped for by many analysts and strongly pursued
by the Federal Reserve Board finally took hold over the past six months.
In fact, the economy slowed more than expected. The so-called leading in-
dicators posted three consecutive monthly drops, with economic activity
contracting in the spring quarter for the first time in four years. Em-
ployment weakness in April and May signified that the slowdown had begun
to erode the economy's income-generating capacity somewhat, slowing down
the advance in spendable income.
Nonetheless, we are confident that a recession is not underway. First of
all, the economy is not exhibiting the financial stresses and imbalances
that often mark the end of an expansion. For example, business balance
sheets are strong, even at smaller companies. Many firms have also built a
cushion into profit margins by reducing fixed labor costs like health care
benefits. Consumer financial positions are in excellent shape, allowing
leeway to survive a no-growth, low-inflation environment. Rallies in stock
and bond markets have boosted consumer net worth. Meanwhile, borrowing is
vigorous and we believe should remain so, further spurring consumer spend-
ing.
A second comforting factor is the unprecedented speed with which busi-
nesses have adjusted their production schedules to new economic realities.
By limiting the buildup of unwanted inventories, many firms have lowered
their operating rates considerably. Furthermore, business caution is ex-
tending into the third quarter. While this low production may result in
sluggish overall growth during the summer, it should help keep a better
balance between supply and demand.
A BRIGHTER INFLATION OUTLOOK
Economic deceleration is exactly what the Fed wanted to cool rising infla-
tion expectations, and we believe it's working. The abrupt character of
the slowdown has shocked some businesses who now think they cannot raise
prices and keep their customers. Auto incentives are proliferating, and
steel makers have begun to cut prices to win market share. Even basic ma-
terials producers are offering price cuts, as last year's speculative in-
ventory build-ups now seem counterproductive.
In general, lower operating costs are opening a gap between supply and de-
mand that is alleviating price increase pressure. And while the dollar's
decline could be expected to generate higher import prices that would add
to domestic price pressures, import prices are actually not rising any
faster than domestically-produced finished goods. In other words, a selec-
tive and value-conscious consumer has the upper hand with both domestic
and imported suppliers.
STOCK MARKET EXHIBITS EXCEPTIONAL STRENGTH
The U.S. stock market rallied solidly throughout the past six months,
leading world equity markets by a fairly wide margin. Fueled by falling
interest rates, increasing corporate earnings estimates, successful re-
structuring and cost-containment strategies, and a flurry of corporate
mergers and acquisitions, the Standard & Poor's 500 Index and Dow Jones
Industrial Average both hit new, all-time closing highs in June. In fact,
the S&P 500 had its strongest first half showing since 1987. Large capi-
talization stocks outperformed small caps during the period. In terms of
sectors, technology was the clear leader, followed by financial services,
capital goods, health care, and transportation. Consumer services and du-
rables, utilities, and energy issues lagged the general market.
A FED EASE IS LIKELY
With the economy slowing and inflation seemingly at bay, the Fed began
cautiously easing monetary policy this summer with a quarter point inter-
est rate decrease. Forward-looking inflation indicators like the prime
diffusion index and supplier delivery index, both published by the na-
tional purchasing managers, portend smaller inflation increases. These in-
dicators will be particularly important to Fed policymakers seeking to
keep the economic slowdown from turning recessionary.
We believe that the Fed will want to retain market confidence that it is
not abandoning its anti-infation stance and, therefore, any easing of in-
terest rates will be in small increments. This approach will allow the Fed
to assist the economy and still have the time to assess the ongoing stream
of new economic data to determine the effect of its new monetary policy.
And it would finely balance the Fed's genuine uncertainty as to whether
the pause in economic growth will be short-lived.
PORTFOLIO OVERVIEW
Dreyfus Special Growth Fund turned in a solid performance during the past
six months, despite a period in which small capitalization growth and
value stocks both performed poorly in comparison with other market sec-
tors. The Fund posted a total return of 14.20%* for the Investor shares
and 14.34%* for Class R shares for the six months ended June 30, 1995.
During the same period, the Russell 2000 Index** provided a total return
of 14.42%.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** The Russell 2000 Index is comprised of 2,000 of the smallest stocks (on
the basis of capitlization) in The Russell 3000 Index. Representing ap-
proximately 10% of The Russell 3000 total market cap, this is a small
cap index. The performance reflects the reinvestment of dividends and
capital gains.
The Fund's positive performance can be traced to solid returns from hold-
ings in several sectors. In natural gas/oil services, our patience paid
off as many trends we had been awaiting finally materialized over the pe-
riod. Services for finding new oil and gas reserves are in short supply
and equipment prices are rising. Natural gas prices are stabilizing and
oil prices have risen much higher than many people expected. In this envi-
ronment, our overweighting in natural gas/oil service stocks rewarded the
Fund with strong returns. One star performer was Sonata Offshore Drilling,
a manufacturer of partially-submersible oil rigs.
A view point contrary to conventional market wisdom led to an overweight-
ing in the telecommunications sector, particularly cable company and cel-
lular phone company stocks, which contributed strongly to Fund performance
over the period. This sector underperformed the market during 1994, but we
believed that regulation would soon be reduced, giving these companies ad-
ditional pricing flexibility that would boost revenues. This development
occurred in the early months of 1995, and these holdings have performed
quite well, particularly our top holding of Viacom Inc.
Biotechnology holdings also boosted Fund returns, with Amgen and Genzyme
turning in particularly strong returns. We have begun to add to the Fund's
airline holdings in recent months, as they are now selling at good valua-
tions relative to asset values and potential earnings. Basic industrial
holdings such as Boise Cascade and Stone Container also did very well for
the Fund as these stocks, which had been shunned during the "go-go con-
sumer spending '80's" have finally regained investor favor.
In the months ahead, we will be monitoring the economy and interest rates
closely for changes that might affect our investment decisions. In gen-
eral, however, we plan to remain fully invested and to continue relying on
the in depth analysis of individual stocks.
PORTFOLIO OF INVESTMENTS (UNAUDITED)
DREYFUS SPECIAL GROWTH FUND JUNE 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
COMMON STOCKS -- 92.0%
ENERGY -- 24.2%
40,000 Apache Corporation $ 1,095,000
120,000 Brown, Tom, Inc.+ 1,785,000
707,000 Global Marine, Inc.+ 4,065,250
60,000 Noble Affiliates, Inc. 1,530,000
268,000 Rowan Companies, Inc.+ 2,177,500
90,000 Sonat Offshore Drilling, Inc. 2,587,500
247,500 Varco International, Inc.+ 2,041,875
171,500 Weatherford International, Inc.+ 2,165,188
2,500 YPF, Inc., ADR 47,963
17,495,276
HEALTH CARE -- 13.9%
64,000 ALZA Corporation+ 1,496,000
26,000 Amgen, Inc.+ 2,091,375
57,000 Bichem Pharma Inc. 1,246,875
32,000 Biogen, Inc.+ 1,424,000
65,000 Centocor, Inc.+ 930,313
39,000 Genzyme Corporation+ 1,560,000
9,990 Genzyme Corporation Tissue Repair+ 66,184
60,000 United States Surgical Corporation 1,252,500
10,067,247
TELECOMMUNICATIONS -- 11.3%
9,000 Advanced Information Services 131,983
32,000 General Instrument Corporation+ 1,228,000
22,000 Highwaymaster Communications Inc.+ 335,500
87,125 Tele Communications, Inc., Class A+ 2,041,992
23,000 Telecom Argentina STET 104,216
14,000 Telecomasia Corporation+ 52,461
34,100 Telecomasia Corporation, GDR++ 1,244,650
3,000 Telecomunicacoes Brasileiras S.A., ADR 100,125
42,000 Telefonica De Argentina S.A., Class B 105,026
12,000 Telekom Malaysia Berhad 91,058
40,000 Telephone & Data Systems, Inc. 1,455,000
3,000 Telmax, ADR 88,680
10,000 Thai Telephone & Telecommunication+ 87,503
54,000 Turner Broadcasting Systems Inc., Class B 1,107,000
8,173,194
CONSUMER SERVICES -- 9.6%
108,000 Comcast Corporation, Class A 1,964,250
11,100 General Re Corporation 1,486,013
80,000 Hong Kong and Shanghai Hotels 98,736
25,000 United Engineers 158,942
61,500 Vanguard Cellular Systems, Inc., Class A+ 1,476,000
38,000 Viacom, Inc., Class B+ 1,762,250
6,946,191
BASIC INDUSTRIES -- 8.6%
53,000 Boise Cascade Corporation 2,146,500
53,000 Elcor Corporation+ 1,179,250
950,000 Mariah International, Inc.+ 47,500
35,000 Nac Re Corporation 1,089,375
6,000 Sprithai Superware 45,331
80,000 Stone Container Corporation+ 1,700,000
174,000 Yue Yuen Industrial Holdings 42,276
6,250,232
CAPITAL GOODS -- 5.4%
3,100 Nokia AB 181,456
104,500 Seda Specialty Packaging+ 822,938
69,500 Tidewater, Inc. 1,746,188
35,000 Trinity Industry, Inc. 1,163,750
3,914,332
TRANSPORTATION -- 5.2%
15,000 AMR Corporation+ 1,119,375
22,000 Delta Airlines Inc. 1,622,500
43,000 Southwest Airlines Company 1,026,625
3,768,500
TECHNOLOGY -- 4.9%
44,500 Analog Devices, Inc.+ 1,513,000
25,000 Aspen Technology, Inc.+ 637,500
30,000 Leader Universal Holdings 107,055
55,000 Network Equipment Technologies+ 1,306,250
3,563,805
FINANCIAL SERVICES -- 4.3%
10,000 AMMB Holdings Berhad 118,950
10,000 Bangkok Bank Public Company 110,188
15,000 Malayan Banking Berhad 118,745
34,000 MGIC Investment Corporation 1,593,750
16,000 Overseas Union Bank 100,751
25,000 Trenwick Group, Inc. 1,062,500
3,104,884
UTILITIES -- 2.9%
73,000 Airtouch Communications, Inc.+ 2,080,500
CONSUMER NON-DURABLES -- 0.2%
20,500 H.M. Sampoerna 161,091
CONSUMER DURABLES -- 0.1%
5,000 Ek Chor China Motorcycle Company 80,625
OTHER -- 1.4%
15,000 Aokam Perdana 37,223
12,000 Portucel Industrial S.A. 85,713
25,000 Softkey International Inc. 796,875
20,000 Th Loy Industries Berhad+ 81,214
1,001,025
TOTAL COMMON STOCKS
(Cost $60,591,034) 66,606,902
CONVERTIBLE PREFERRED -- 0.3% (Cost $103,901)
10,000 AMMB Holdings Berhad, Convertible 5,455
2,000 Philippine Long Distance Telecommunications 128,750
134,205
WARRANTS -- 0.7% (Cost $472,700)
145,000 Ann Taylor Stores Corporation, Warrant,
Expire 07/15/1999+ 525,625
FACE VALUE
VALUE (NOTE 1)
COMMERCIAL PAPER -- 2.8% (Cost $2,046,000)
$2,046,000 General Electric Capital Corporation, Interest
Bearing Note 6.200% due 07/03/1995 $ 2,046,000
TOTAL INVESTMENTS (Cost $63,213,635*) 95.8% 69,312,732
OTHER ASSETS AND LIABILITIES (NET) 4.2 3,084,841
NET ASSETS 100.0% $72,397,573
<FN>
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
++ Security exempt from registration under Rule 144A of the Securities Act
of 1933. The securities may be resold in transactions exempt from reg-
istration, normally to qualified institutional buyers.
</FN>
</TABLE>
See Notes to Financial Statements.
STATEMENT OF ASSETS AND LIABILITIES
DREYFUS SPECIAL GROWTH FUND JUNE 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS
Investments, at value (Cost $63,213,635) (Note 1)
See accompanying schedule $69,312,732
Cash and foreign currency (Cost $1,435,575) 1,433,783
Receivable for investment securities sold 2,826,860
Dividends and interest receivable 49,310
Receivable for Fund shares sold 1,678
TOTAL ASSETS 73,624,363
LIABILITIES:
Payable for investment securities purchased $961,693
Investment management fee payable (Note 2) 201,585
Payable for Fund shares redeemed 47,634
Distribution fee payable (Note 3) 13,488
Accrued Trustees' fees and expenses (Note 2) 2,390
TOTAL LIABILITIES 1,226,790
NET ASSETS $72,397,573
NET ASSETS consist of:
Accumulated net investment loss earned to date $ (132,384)
Accumulated net realized loss on investments, for-
ward foreign exchange contracts and foreign cur-
rency transactions (2,942,909)
Net unrealized appreciation of investments, for-
ward foreign exchange contract and foreign cur-
rency 6,097,530
Paid-in capital 69,375,336
TOTAL NET ASSETS $72,397,573
NET ASSET VALUE
INVESTOR CLASS SHARES:
Net asset value, offering and redemption price per
share ($66,296,317 / 3,963,698 shares of benefi-
cial interest outstanding) $ 16.73
CLASS R SHARES:
Net asset value, offering and redemption price per
share ($6,101,256 / 361,032 shares of beneficial
interest outstanding) $ 16.90
</TABLE>
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
DREYFUS SPECIAL GROWTH FUND
FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest (net of foreign withholding taxes of $74) $ 185,068
Dividends (net of foreign withholding taxes of
$6,759) 169,868
TOTAL INVESTMENT INCOME 354,936
EXPENSES:
Investment management fee (Note 2) $403,359
Distribution fee (Note 3) 80,422
Trustees' fees and expenses (Note 2) 3,539
TOTAL EXPENSES 487,320
NET INVESTMENT LOSS (132,384)
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(Notes 1 and 4):
Net realized gain/(loss) on:
Securities transactions (2,201,861)
Forward foreign exchange contracts 15,222
Foreign currency transactions (7,788)
Net realized loss on investments sold during
the period (2,194,427)
Net change in unrealized appreciation/ (depre-
ciation) of:
Securities 11,751,598
Forward foreign exchange contracts 525
Foreign currencies (575)
Net unrealized appreciation of investments
during the period 11,751,548
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 9,557,121
NET INCREASE IN NET ASSETS RESULTING FROM OPERA-
TIONS $ 9,424,737
</TABLE>
See Notes to Financial Statements.
STATEMENT OF CHANGES IN NET ASSETS
DREYFUS SPECIAL GROWTH FUND
<TABLE>
<CAPTION>
SIX
MONTHS YEAR
ENDED ENDED
6/30/95 12/31/94
(UNAUDITED)
<S> <C> <C>
Net investment loss $ (132,384) $ (440,961)
Net realized loss on investments, forward foreign
exchange contracts and currency transactions
during the period (2,194,427) (633,633)
Net unrealized appreciation/(depreciation) on in-
vestments, forward foreign exchange contracts,
foreign currency during the period 11,751,548 (18,173,370)
Net increase/(decrease) in net assets resulting
from operations 9,424,737 (19,247,964)
Distributions to shareholders from net realized
gains on investments:
Investor Shares -- (228,089)
Class R Shares -- (28,254)
Distributions to shareholders in excess of net re-
alized gain on investments:
Investor Shares -- (184)
Class R Shares -- (23)
Net decrease in net assets from Fund share trans-
actions (Note 5):
Investor Shares (7,118,022) (21,633,955)
Class R Shares (1,532,223) (5,807,720)
Net increase/(decrease) in net assets 774,492 (46,946,189)
NET ASSETS:
Beginning of period 71,623,081 118,569,270
End of period $72,397,573 $ 71,623,081
</TABLE>
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
FINANCIAL HIGHLIGHTS
DREYFUS SPECIAL GROWTH FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED YEAR YEAR YEAR
06/30/95 ENDED ENDED ENDED
(UNAUDITED) 12/31/94## 12/31/93+++ 12/31/92
<S> <C> <C> <C> <C>
Net asset value, beginning
of period $ 14.65 $ 17.97 $ 16.45 $ 14.59
Income from investment op-
erations:
Net investment in-
come/(loss)# (0.03) (0.09) (0.20) (0.10)
Net realized and unreal-
ized gain/(loss) on in-
vestments 2.11 (3.18) 3.51 3.77
Total from investment op-
erations 2.08 (3.27) 3.31 3.67
Less distributions:
Dividends from net invest-
ment income -- -- -- --
Distributions in excess of
net investment income -- -- -- (0.19)
Distributions from net re-
alized capital gains -- (0.05) (1.79) (1.62)
Distributions in excess of
net realized gains on
investments -- (0.00)(1) -- --
Total distributions -- (0.05) (1.79) (1.81)
Net asset value, end of
period $ 16.73 $ 14.65 $ 17.97 $ 16.45
Total return+ 14.20% (18.22)% 20.01% 26.19%
Ratios to average net as-
sets/supplemental data:
Net assets, end of period
(in 000's) $66,296 $64,839 $83,879 $64,071
Ratio of operating ex-
penses to average net
assets++ 1.40%** 1.42% 1.73% 1.57%
Ratio of net investment
income/(loss) to average
net assets+++ (0.40)%** (0.51)% (1.09)% (0.71)%
Portfolio turnover
rate++++ 25% 133% 94% 112%
<FN>
* On February 1 ,1993 existing shares of the Fund were designated the Re-
tail class and the Fund began offering the Institutional Class and the
Investment Class of shares. Effective April 4, 1994 the Retail and In-
stitutional Classes were reclassified as a single class of shares known
as Investor shares. The amounts shown for the year ended December 31,
1994 were calculated using the performance of a Retail Class share out-
standing from January 1, 1994 to April 3, 1994, and the performance of
an Investor Share outstanding from April 4, 1994 to December 31, 1994.
The Financial Highlights for the year ended December 31, 1993 and prior
years are based upon a Retail Class share outstanding.
** Annualized.
+ Total return represents aggregate total return for the periods indi-
cated.
++ Without the voluntary reimbursement of expenses and/or waiver of fees
by the investment adviser the annualized ratio of expenses to average
net assets for the year ended December 31,1993 would have been 1.79%.
</FN>
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/91 12/31/90+++ 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
<S> <C> <C> <C> <C> <C> <C>
$ 13.56 $ 14.28 $ 14.27 $ 12.02 $ 17.21 $ 20.95 $ 15.87
(0.05) 0.03 0.14 0.37 0.63 0.13 0.36
3.90 (0.72) 2.49 2.22 (0.91) 1.40 5.07
3.85 (0.69) 2.63 2.59 (0.28) 1.53 5.43
-- (0.03) (0.25) (0.34) (0.81) (0.31) (0.35)
-- -- -- -- -- -- --
(2.82) -- (2.37) -- (4.10) (4.96) --
-- -- -- -- -- -- --
(2.82) (0.03) (2.62) (0.34) (4.91) (5.27) (0.35)
$ 14.59 $ 13.56 $ 14.28 $ 14.27 $ 12.02 $ 17.21 $ 20.95
29.22% (4.84)% 18.83% 21.49% (3.81)% 7.66% 34.80%
$41,522 $43,591 $39,759 $35,277 $30,678 $35,860 $53,562
1.70% 1.62% 1.72% 1.58% 1.49% 1.32% 1.35%
(0.34)% 0.19% 0.82% 2.70% 3.25% 1.16% 1.96%
141% 222% 184% 180% 322% 192% 257%
<FN>
+++ Per share amounts have been calculated using the monthly average
share method.
++++ In accordance with the Securities and Exchange Commission's July 1985
rules amendment, the rates for 1986 and later periods include U.S.
Government long-term securities which were excluded from the calcula-
tions in prior years.
# Without the voluntary waiver of fees and/or reimbursement of expenses
by the investment adviser, net investment loss for the year ended De-
cember 31, 1993 would have been ($0.21).
## Prior to April 4, 1994, The Boston Company Advisors, Inc. served as
the Fund's investment adviser. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A. served as the Fund's investment manager. Ef-
fective October 17, 1994, The Dreyfus Corporation serves as the Fund's
investment manager.
(1) Amount represents less than $0.01 per share.
</FN>
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS SPECIAL GROWTH FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED YEAR PERIOD
06/30/95+++ ENDED ENDED
(UNAUDITED) 12/31/94## 12/31/93*+++
<S> <C> <C> <C>
Net asset value, beginning of period $14.78 $ 18.06 $ 17.31
Income from investment operations:
Net investment income/(loss)# (0.01) (0.02) (0.10)
Net realized and unrealized gain/(loss)
on investments 2.13 (3.21) 2.64
Total from investment operations 2.12 (3.23) 2.54
Less distributions:
Distributions from net realized capital
gains -- (0.05) (1.79)
Distributions in excess of net realized
gains on investments -- (0.00)(1) --
Total distributions -- (0.05) (1.79)
Net asset value, end of period $16.90 $ 14.78 $ 18.06
Total return+ 14.34% (17.91)% 15.78%
Ratios to average net assets/supplemen-
tal data:
Net assets, end of period (in 000's) $6,101 $ 6,784 $14,941
Ratio of operating expenses to average
net assets++ 1.15%** 1.15% 1.19%**
Ratio of net investment loss to average
net assets+++ (0.15)%** (0.24)% (0.55)%**
Portfolio turnover rate++++ 25% 133% 94%
<FN>
* On February 1 ,1993, the Fund commenced selling Investment shares. Ef-
fective April 4, 1994 the Investment Class were reclassified as Trust
shares and on October 17, 1994 were reclassified as Class R shares.
** Annualized.
+ Total return represents aggregate total return for the periods indi-
cated.
++ Without the voluntary reimbursement of expenses and/or waiver of fees
by the investment adviser, the ratio of expenses to average net assets
for the period ended December 31, 1993 would have been 1.25%.
+++ Per share amounts have been calculated using the monthly average share
method.
# Without the voluntary waiver of fees and/or reimbursement of expenses
by the investment adviser, net investment loss for the for the year
ended December 31, 1993 would have been ($0.11).
## Prior to April 4, 1994, The Boston Company Advisors, Inc. served as
the Fund's investment adviser. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A. served as the Fund's investment manager. Ef-
fective October 17, 1994, The Dreyfus Corporation serves as the Fund's
investment manager.
(1) Amount represents less than $0.01 per share.
</FN>
</TABLE>
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Funds Trust (the "Trust") (formerly The Boston Company
Fund), The Dreyfus/Laurel Tax-Free Municipal Funds, The Dreyfus/Laurel
Funds, Inc. and The Dreyfus/ Laurel Investment Series are all registered
open-end investment companies that are now a part of The Dreyfus Family
Funds. The Trust is an investment company which consists of four funds:
Premier Limited Term Government Securities Fund, Dreyfus Core Value Fund,
Premier Managed Income Fund and Dreyfus Special Growth Fund. These finan-
cial statements report on Dreyfus Special Growth Fund (the "Fund"). The
Trust is a Massachusetts business trust and is registered with the Securi-
ties and Exchange Commission under the Investment Company Act of 1940, as
amended (the "1940 Act"), as a diversified, open-end management investment
company. The Fund currently offers two classes of shares: Investor and
Class R shares. Investor shares are sold primarily to the retail investors
through financial intermediaries and bear a distribution fee. Class R
shares are sold primarily to bank trust departments and other financial
service providers (including Mellon Bank, N.A. ("Mellon Bank") and its af-
filiates) acting on behalf of customers having a qualified trust or in-
vestment account or relationship at such institution and bear no distribu-
tion fee. Each class of shares has identical rights and privileges except
with respect to the distribution fees and voting rights on matters affect-
ing a single class. The following is a summary of significant accounting
policies consistently followed by the Fund in the preparation of its fi-
nancial statements.
(A) PORTFOLIO VALUATION
Investments in securities traded on a national securities exchange are
valued at the last reported sales price or, in the absence of a recorded
sale, at the mean of the closing bid and asked prices. Over-the-counter
securities are valued at the closing bid price at the close of business
each day, or, if market quotations for such securities are not readily
available, at fair value, as determined in good faith by the Board of
Trustees. Options are generally valued at the last sale price or, in the
absence of a last sale price, the last bid price. Bonds are valued through
valuations obtained from a commercial pricing service or at the most re-
cent mean of the bid and asked prices provided by investment dealers in
accordance with procedures established by the Board of Trustees. Debt se-
curities with maturities of 60 days or less from the valuation day are
valued on the basis of amortized cost. Foreign securities are generally
valued at the preceding closing values of such securities on their respec-
tive exchanges, except that when an occurrence subsequent to the time a
value was so established is likely to have changed such value, then the
fair value of those securities will be determined by consideration of
other factors by or under the direction of the Board of Trustees or its
delegates.
(B) FORWARD FOREIGN CURRENCY CONTRACTS
The Fund uses forward foreign currency contracts to hedge risks on foreign
currency denominated transactions and holdings. The Fund generally enters
into forward contracts as a hedge, in connection with the purchase or sale
of a security denominated in foreign currency. Forward contracts may also
be used to shift portfolio currency risks, though the Fund does not employ
forwards for this purpose at the present time.
Forward foreign currency contracts are valued at the forward rate and are
marked-to- market daily. The change in market value is recorded by the
Fund as an unrealized gain or loss. When the contract is closed, the fund
records a realized gain or loss equal to the difference between the value
of the contract at the time it was opened and at the value at the time it
was closed.
The use of forward foreign currency contracts does not eliminate fluctua-
tions in the underlying process of the Fund's investment securities, but
it does establish a rate of exchange that can be achieved in the future.
Although forward foreign currency contracts limit the risk of loss due to
a decline in the value of the hedged currency, they also limit any poten-
tial gain that might result should the value of the currency increase. In
addition, the Fund could be exposed to risks if the counterparties to the
contracts are unable to meet the terms of their contracts.
(C) FOREIGN CURRENCY
The books and records of the Fund are maintained in the United States
(U.S.) dollars. Foreign currencies, investments and other assets and lia-
bilities are translated into U.S. dollars at the exchange rates prevailing
at the end of the period, and purchase and sales of investment securities,
income and expenses are translated on the respective dates of such trans-
actions. Unrealized gains and losses which result from changes in the for-
eign currency exchange rates have been included in the unrealized appreci-
ation/(depreciation) of investments and net other assets. Net realized
foreign currency gains and losses resulting from changes in exchange rates
include foreign currency gains and losses between trade date and settle-
ment date on investment securities transactions, foreign currency transac-
tions and the difference between the amounts of interest and dividends re-
corded on the books of the Fund and the amount actually received. The por-
tion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial purchase trade date and subsequent sale
trade date is included in realized gains and losses on investment securi-
ties sold.
(D) REPURCHASE AGREEMENT
The Fund may engage in repurchase agreement transactions. Under the terms
of a typical repurchase agreement, the Fund, through its custodian, takes
possession of an underlying debt obligation subject to an obligation of
the seller to repurchase, and the Fund to resell, the obligation at an
agreed-upon price and time, thereby determining the yield during the
Fund's holding period. This arrangement results in a fixed rate of return
that is not subject to market fluctuations during the Fund's holding pe-
riod. The value of the collateral is at least equal at all times to the
total amount of the repurchase obligations, including interest. In the
event of counterparty default, the fund has the right to use the collat-
eral to offset losses incurred. There is potential loss to the Fund in the
event the Fund is delayed or prevented from exercising its rights to dis-
pose of the collateral securities including the risk of a possible decline
in the value of the underlying securities during the period while the Fund
seeks to assert its rights. The Fund's investment manager, acting under
the supervision of the Board of Trustees, review the value of the collat-
eral and the creditworthiness of those banks and dealers with which the
Fund enters into repurchase agreements to evaluate potential risks.
(E) OPTION CONTRACTS
The Fund may enter into option transactions. Upon the purchase of a put
option or a call option by the Fund, the premium paid is recorded as an
investment, the value of which is marked-to-market daily. When a purchased
option expires, the Fund will realize a loss in the amount of the cost of
the option. When the Fund enters into a closing sale transaction, the Fund
will realize a gain or loss depending on whether the sales proceeds from
the closing sale transaction are greater or less than the cost of the op-
tion. When the Fund exercises a put option, it will realize a gain or loss
from the sale of the underlying security and the proceeds from such sale
will be decreased by the premium originally paid. When the Fund exercises
a call option, the cost of the security which the Fund purchases upon ex-
ercise will be increased by the premium originally paid.
When a Fund writes a call option or a put option, an amount equal to the
premium received by the Fund is recorded as a liability, the value of
which is marked-to-market daily. When a written option expires the Fund
realizes a gain equal to the amount of the premium received. When the Fund
enters into a closing purchase transaction, the Fund realizes a gain (or
loss if the cost of the closing purchase transaction exceeds the premium
received when the option was sold) without regard to any unrealized gain
or loss on the underlying security, and the liability related to such op-
tion is eliminated. When a call option is exercised, the Fund realizes a
gain or loss from the sale of the underlying security and the proceeds
from such sale are increased by the premium originally received. When a
put option is exercised, the amount of the premium originally received
will reduce the cost of the security which the Fund purchased upon exer-
cise.
The risk associated with purchasing options is limited to the premium
originally paid. The risk in writing a call option is that the Fund may
forego the opportunity of profit if the market price of the underlying se-
curity increases and the option is exercised. The risk in writing a put
option is that the Fund may incur a loss if the market price of the under-
lying security decreases and the option is exercised. In addition, there
is the risk the Fund may not be able to enter into a closing transaction
because of an illiquid secondary market.
(F) EXPENSE ALLOCATION
Expenses of the Fund not directly attributable to the operations of any
class of shares are prorated between the classes based upon the relative
average daily net assets of each class. Distribution expense is directly
attributable to a particular class of shares and is charged only to that
class' operations.
(G) SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Dividend income
is recorded on the ex-dividend date. Interest income is recorded on the
accrual basis. Realized gains or losses on sales of investments are deter-
mined on the basis of identified cost. Investment income and realized
gains and losses are allocated based upon relative net assets of each
class of shares.
(H) DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income, if any, of the Fund are declared
quarterly on a class level and paid annually. The Fund distributes any net
realized capital gains on a Fund level annually. Distributions to share-
holders are recorded on the ex-dividend date. Additional distributions of
net investment income and capital gains for the Fund may be made at the
discretion of the Board of Trustees in order to avoid the 4.00% non-
deductible Federal excise tax. Income distributions and capital gain dis-
tributions on a Fund level are determined in accordance with income tax
regulations which may differ from generally accepted accounting princi-
ples. These differences are primarily due to differing treatments of in-
come and gains on various investment securities held by the Fund, timing
differences and differing characterization of distributions made by the
Fund as a whole.
(I) FEDERAL TAXES
It is the Fund's policy to qualify as a regulated investment company, if
such qualification is in the best interest of its shareholders, by comply-
ing with the requirements of the Internal Revenue Code applicable to regu-
lated investment companies and by distributing all of its taxable income
to its shareholders. Therefore, no Federal income tax provision is re-
quired.
2. INVESTMENT MANAGEMENT FEE, TRUSTEE'S FEES AND OTHER PARTY TRANSACTIONS
The Trust has an investment management agreement with The Dreyfus Corpora-
tion (the "Manager"), a wholly-owned subsidiary of Mellon Bank. The Man-
ager provides, or arranges for one or more third parties to provide, in-
vestment advisory, administrative, custody, fund accounting and transfer
agency services to the Trust. The Manager also directs the investments of
the Fund in accordance with its investment objectives, policies and limi-
tations. For these services, the Fund is contractually obligated to pay
the Manager a fee, calculated daily and paid monthly, at the annual rate
of 1.15% of the value of the Fund's average daily net assets. Out of its
fee, the Manager pays all of the expenses of the Fund except brokerage
fees, taxes, interest, Rule 12b-1 distribution fees and expenses, fees and
expenses of non-interested trustees (including counsel fees) and extraor-
dinary expenses. In addition, the Manager is required to reduce its fee in
an amount equal to the Fund's allocable portion of fees and expenses of
the non-interested trustees (including counsel).
Premier Mutual Fund Services, Inc. ("Premier") serves as the Trust's dis-
tributor. Premier also serves as the Trust's sub-administrator and, pursu-
ant to a sub-administration agreement with the Manager, provides various
administrative and corporate secretarial services to the Trust.
No officer or employee of Premier (or of any parent, subsidiary or affili-
ate thereof) receives any compensation from the Trust, The Dreyfus/Laurel
Funds, Inc., The Dreyfus/ Laurel Tax-Free Municipal Funds and The Dreyfu-
s/Laurel Investment Series (collectively, "The Dreyfus/Laurel Funds") for
serving as an officer, Director or Trustee of The Dreyfus/Laurel Funds. In
addition, no officer or employee of the Manager (or of any parent, subsid-
iary or affiliate thereof) serves as an officer, Director or Trustee of
The Dreyfus/Laurel Funds. The Dreyfus/Laurel Funds pay each Director or
Trustee who is not an officer or employee of Premier (or any parent, sub-
sidiary or affiliate thereof) or of the Manager, $27,000 per annum, $1,000
for each Board meeting attended and $750 for each Audit Committee meeting
attended, and reimburse each Director or Trustee for travel and out-of-
pocket expenses.
3. DISTRIBUTION PLAN
Investor Shares are subject to a distribution plan (the "Plan") adopted
pursuant to Rule 12b-1 of the 1940 Act. Under the Plan the Fund may pay
annually up to .25% of the value of the average daily net assets attribut-
able to its Investor shares to compensate Premier and Dreyfus Service Cor-
poration, an affiliate of the Manager, for shareholder servicing activi-
ties and Premier for activities primarily intended to result in the sale
of Investor shares. The Class R Shares bear no distribution fee.
Under its terms, the Plan shall remain in effect from year to year, pro-
vide such continuance is approved annually by a vote of a majority of the
Trustees and a majority of the Trustees who are not "interested person" of
the Trust and who have no direct or indirect financial interest in the op-
eration of the Plan or in any agreement related to the Plan.
4. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities, excluding short-
term investments and U.S. government securities, for the six months ended
June 30, 1995 were $15,935,078 and $22,322,886, respectively.
At June 30, 1995, aggregate gross unrealized appreciation for all securi-
ties in which there is an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities in which there is an ex-
cess of tax cost over value were $10,878,076 and $4,778,979, respectively.
5. SHARES OF BENEFICIAL INTEREST
The Trust has the authority to issue an unlimited number of shares of ben-
eficial interest of four separate investment portfolios, without par
value. The Fund offers two classes of shares.
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994**
SHARES AMOUNT SHARES+ AMOUNT++
<S> <C> <C> <C> <C>
INVESTOR SHARES:
Sold 559,652 $ 8,632,462 1,941,895 $ 32,031,183
Issued as reinvestment of dividends and
distributions -- -- 14,090 217,665
Redeemed (1,020,346) (15,750,484) (3,294,141) (53,882,803)
Net decrease (460,694) $ (7,118,022) (1,338,056) $(21,633,955)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994**#
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
CLASS R SHARES:
Sold 55,967 $ 869,346 82,480 $ 1,390,092
Issued as reinvestment of dividends and
distributions -- -- 1,624 25,347
Redeemed (153,805) (2,401,569) (452,409) (7,223,159)
Net decrease (97,838) $(1,532,223) (368,305) $(5,801,720)
<FN>
# Effective October 17, 1994, the Trust Shares were reclassified as Class
R shares.
+ Number of shares includes 157,588 of subscriptions and 477,271 of re-
demptions for the Institutional Class up to April 4, 1994.
++ Amounts include 2,791,543 of subscriptions and 8,392,173 of redemptions
for the Institutional Class up to April 4, 1994.
** Effective April 4, 1994, the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor Shares
and the Investment Class shares were reclassified as Trust shares.
</FN>
</TABLE>
6. FOREIGN SECURITIES
The Fund may purchase securities of foreign issuers. Investing in securi-
ties of foreign companies and foreign governments involves special risks
and considerations not typically associated with investing in U.S. compa-
nies and the U.S. government. These risks include revaluation of curren-
cies and future adverse political and economic developments. Moreover, se-
curities of many foreign companies and foreign governments and their mar-
kets may be less liquid and their prices more volatile than those of
securities of comparable U.S. companies and the U.S. government.
<PAGE>
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I | The
| DREYFUS
| |
| [SMALL BOX ABOVE FUND NAME
A | SHOWING A LION'S FACE]
|
N | FAMILY
| OF FUNDS
N | --------------------------
|
U |
|
A |
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L |
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| DREYFUS CORE VALUE FUND
R |
|
E |
|
P |
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O |
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R |
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T | JUNE 30, 1995
<PAGE>
DEAR SHAREHOLDER,
We are pleased to provide you with the Dreyfus Core Value Fund's Semi-Annual
Report for the six months ended June 30, 1995.
In the pages that follow, we have provided you with a description of the
market environment, a commentary on the Fund's investment strategy and
detailed financial statements for the past six months.
As you know, the Fund has been integrated into The Dreyfus Family of Funds.
We hope that you found the transition from The Laurel Funds to The Dreyfus
Family of Funds to be a smooth one. The extended family of funds now offers
you more investment alternatives in addition to expanded services and
privileges to better serve your investment needs.
We would like to extend our appreciation for your support of The Dreyfus
Family of Funds and hope that the Fund will continue to satisfy your
investment needs. As always, we welcome your thoughts and suggestions.
Sincerely,
[SIGNATURE]
Marie E. Connolly
President
The Dreyfus/Laurel Funds Trust --
Dreyfus Core Value Fund
August 18, 1995
1
..............................................................
<PAGE>
<TABLE>
TABLE OF CONTENTS
..............................................................
<S> <C>
Shareholder Letter................................... 1
Economic Review...................................... 3
Portfolio Overview................................... 4
Portfolio of Investments............................. 6
Statement of Assets and Liabilities.................. 15
Statement of Operations.............................. 16
Statement of Changes in Net Assets................... 17
Financial Highlights................................. 18
Notes to Financial Statements........................ 23
</TABLE>
2
..............................................................
<PAGE>
ECONOMIC REVIEW
..............................................................
ECONOMIC SLOWDOWN IS MARKED BUT NOT RECESSIONARY
The economic slowdown long hoped for by many analysts and strongly pursued by
the Federal Reserve Board finally took hold over the past six months. In
fact, the economy slowed more than expected. The so-called leading indicators
posted three consecutive monthly drops, with economic activity contracting in
the spring quarter for the first time in four years. Employment weakness in
April and May signified that the slowdown had begun to erode the economy's
income-generating capacity somewhat, slowing down the advance in spendable
income.
Nonetheless, we are confident that a recession is not underway. First of all,
the economy is not exhibiting the financial stresses and imbalances that
often mark the end of an expansion. For example, business balance sheets are
strong, even at smaller companies. Many firms have also built a cushion into
profit margins by reducing fixed labor costs like health care benefits.
Consumer financial positions are in excellent shape, allowing leeway to
survive a no-growth, low-inflation environment. Rallies in stock and bond
markets have boosted consumer net worth. Meanwhile, borrowing is vigorous and
we believe should remain so, further spurring consumer spending.
A second comforting factor is the unprecedented speed with which businesses
have adjusted their production schedules to new economic realities. By
limiting the buildup of unwanted inventories, many firms have lowered their
operating rates considerably. Furthermore, business caution is extending into
the third quarter. While this low production may result in sluggish overall
growth during the summer, it should help keep a better balance between supply
and demand.
A BRIGHTER INFLATION OUTLOOK
Economic deceleration is exactly what the Fed wanted to cool rising inflation
expectations, and we believe it's working. The abrupt character of the
slowdown has shocked some businesses who now think they cannot raise prices
and keep their customers. Auto incentives are proliferating, and steel makers
have begun to cut prices to win market share. Even basic materials producers
are offering price cuts, as last year's speculative inventory build-ups now
seem counterproductive.
In general, lower operating costs are opening a gap between supply and demand
that is alleviating price increase pressure. And while the dollar's decline
could be expected to generate higher import prices that would add to domestic
price pressures, import prices are actually not rising any faster than
domestically-produced finished goods. In other words, a selective and
value-conscious consumer has the upper hand with both domestic and imported
suppliers.
3
..............................................................
<PAGE>
ECONOMIC REVIEW (CONTINUED)
..............................................................
STOCK MARKET EXHIBITS EXCEPTIONAL STRENGTH
The U.S. stock market rallied solidly throughout the past six months, leading
world equity markets by a fairly wide margin. Fueled by falling interest
rates, increasing corporate earnings estimates, successful restructuring and
cost-containment strategies, and a flurry of corporate mergers and
acquisitions, the Standard & Poor's 500 Index and Dow Jones Industrial
Average both hit new, all-time closing highs in June. In fact, the S&P 500
had its strongest first half showing since 1987. Large capitalization stocks
outperformed small caps during the period. In terms of sectors, technology
was the clear leader, followed by financial services, capital goods, health
care, and transportation. Consumer services and durables, utilities, and
energy issues lagged the general market.
A FED EASE IS LIKELY
With the economy slowing and inflation seemingly at bay, the Fed began
cautiously easing monetary policy this summer with a quarter-point
interest-rate decrease. Forward-looking inflation indicators like the price
diffusion index and supplier delivery index, both published by the national
purchasing managers, portend smaller inflation increases. These indicators
will be particularly important to Fed policymakers seeking to keep the
economic slowdown from turning recessionary.
We believe that the Fed will want to retain market confidence that it is not
abandoning its anti-inflation stance and, therefore, any easing of interest
rates will be small increments. This approach will allow the Fed to assist
the economy and still have the time to assess the ongoing stream of new
economic data to determine the effect of its new monetary policy. And it
would finely balance the Fed's genuine uncertainty as to whether the pause in
economic growth will be short-lived.
PORTFOLIO OVERVIEW
..............................................................
Dreyfus Core Value Fund provided solid, competitive performance for the
semi-annual period ended June 30, 1995. Amid rising stock market conditions,
the Fund's portfolio performed well, providing a total return of 18.95%* for
Investor Class shares, 18.98%* for Institutional class shares, and 19.02%*
for Class R shares, respectively, for the six month period ended June 30,
1995. In comparison, the S&P 500 Composite Stock Price Index** posted a total
return of 20.19% for the same period.
- ------------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** The Standard and Poor's Composite Stock Price Index is an unmanaged index of
stock market performance. The performance reflects the reinvestment of
dividends and capital gains.
4
..............................................................
<PAGE>
PORTFOLIO OVERVIEW (CONTINUED)
..............................................................
The Fund enjoyed particularly strong returns from its holdings in the
financial services and capital goods sectors, which were among the
top-performing sectors in the Standard & Poor's 500 Index for the period.
First Chicago Corporation, Chase Manhattan Bank, Phillips Electronics NV, and
Lockheed Martin Corporation were particularly stellar performers in these
sectors. Technology issues also contributed to Fund returns, although the
portfolio was underweighted in this area due to difficulties in finding good
values amid these exceptionally expensive stocks. Two of our star high-tech
performers were IBM and Sun Microsystems.
Lower returns from health care issues and stocks of consumer non-durable
companies in food and clothing manufacturing industries kept Fund performance
from being stronger, although these holdings posted positive returns.
Going forward, we currently plan to keep the portfolio fully invested. While
we cannot expect the stock market to continue the pace of its recent
acceleration forever, we believe market conditions remain positive. The most
often-debated issues among economists, analysts, and the Federal Reserve
Board surround the direction of the U.S. dollar, equity market volatility,
and whether or not the economy will be able to sustain its "soft landing" or
slip into further deceleration. We will continue to monitor all of these
macro issues, although we remain committed to our growth and value investment
management approach.
5
..............................................................
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED)
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND JUNE 30, 1995
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS -- DOMESTIC -- 85.7%
FINANCIAL SERVICES -- 16.7%
32,700 Aetna Life & Casualty Company $ 2,056,013
227,000 American Express Company 7,973,375
30,700 American International Group Inc. 3,499,800
175,000 Bank Of Boston Corporation 6,562,500
75,930 Bankamerica Corporation 3,995,816
148,300 Chase Manhattan Corporation 6,970,100
25,000 Crestar Financial Corporation 1,225,000
134,000 Dean Witter, Discover & Company 6,298,000
135,000 First Chicago Corporation 8,083,125
35,500 First Tenn National Corporation 1,646,313
161,500 Fleet Financial Group Inc. 5,995,688
33,000 Mercantile Bancorp Inc. 1,480,875
64,700 Morgan (JP) & Company Inc. 4,537,088
37,000 Republic New York Corporation 2,072,000
73,700 Shawmut National Corporation 2,349,188
117,000 St. Paul Companies Inc. 5,762,250
33,000 TRW Inc. 2,635,875
------------
73,143,006
------------
CONSUMER SERVICES -- 13.3%
102,000 American Stores Company 2,868,750
182,500 Conner Peripherals Inc. 2,258,438
200,000 Dillard Department Stores Inc., Class A 5,875,000
6,600 King World Productions Inc.+ 267,300
153,500 Kroger Company+ 4,125,313
249,200 Limited Inc. 5,482,400
157,200 Liz Claiborne Inc. 3,340,500
49,100 Loews Corporation 5,941,100
83,000 May Dept Stores Company 3,454,875
50,600 Melville Corporation 1,733,050
42,500 Penney (J.C.) Inc. 2,040,000
182,000 Rite Aid Corporation 4,663,750
</TABLE>
See Notes to Financial Statements.
6
..............................................................
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND JUNE 30, 1995
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS -- DOMESTIC (continued)
CONSUMER SERVICES (CONTINUED)
70,000 Sears, Roebuck & Company $ 4,191,250
141,500 Tandy Corporation 7,340,313
152,300 Toys R Us Inc. 4,454,775
------------
58,036,814
------------
TECHNOLOGY -- 9.4%
56,000 Advanced Micro Devices Inc. 2,037,000
64,800 Apple Computer Inc. 3,009,150
57,700 Digital Equipment Corporation 2,351,275
19,300 Harris Corporation 996,363
140,000 International Business Machines Corporation 13,440,000
308,300 Philips Electronics N.V 13,179,825
128,000 Sun Microsystems Inc.+ 6,208,000
------------
41,221,613
------------
ENERGY -- 7.7%
35,000 Amerada Hess Corporation 1,710,625
111,000 Exxon Corporation 7,839,375
234,500 Horsham Corporation 3,165,750
68,000 MAPCO Inc. 3,944,000
34,500 Mobil Corporation 3,312,000
137,100 Oryx Energy Company 1,883,750
85,000 Praxair Inc. 2,125,000
30,000 Schlumberger Limited 1,863,750
113,500 Tosco Corporation 3,617,813
194,000 Transcanada Pipeline Limited 2,594,750
53,200 Western Resources Inc. 1,642,550
------------
33,699,363
------------
UTILITIES -- 7.4%
77,400 AT & T Corporation 4,111,875
179,300 CMS Energy Corporation 4,415,263
183,000 GTE Corporation 6,244,875
104,100 Illinova Corporation 2,641,538
274,000 MCI Communications Corporation 6,028,000
</TABLE>
See Notes to Financial Statements.
7
..............................................................
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND JUNE 30, 1995
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS -- DOMESTIC (continued)
UTILITIES (CONTINUED)
117,100 NYNEX Corporation $ 4,713,275
85,000 Pinnacle West Capital Corporation 2,082,500
75,000 Unicom Corporation 1,996,875
------------
32,234,201
------------
CONSUMER NON-DURABLES -- 6.9%
150,200 Archer Daniels Midland Company 2,797,475
132,400 Dial Corporation 3,276,900
149,500 Fruit of the Loom Inc., Class A 3,158,188
161,000 Philip Morris Companies Inc. 11,974,375
233,600 RJR Nabisco Hldgs Corporation+ 6,511,600
71,300 Sherwin Williams Company 2,540,063
------------
30,258,601
------------
HEALTH CARE -- 5.6%
60,000 Baxter International Inc. 2,182,500
54,560 Columbia/ HCA Healthcare Corporation 2,359,720
73,500 Lilly (Eli) & Company 5,769,750
13,812 Nu Med, Inc+** 0
69,060 Progressions Health Systems Inc. 77,693
106,000 Schering Plough Corporation 4,677,250
361,500 Tenet Healthcare Corporation 5,196,563
114,000 Upjohn Corporation 4,317,750
------------
24,581,226
------------
CAPITAL GOODS -- 5.3%
84,500 General Electric Company 4,763,688
54,600 ITT Corporation 6,415,500
55,700 Litton Industries, Inc.+ 2,053,938
128,000 Rockwell International Corporation 5,856,000
93,000 Varity Corporation+ 4,092,000
------------
23,181,126
------------
BASIC INDUSTRIES -- 4.8%
60,000 Abitibi Price Inc. 975,000
50,000 Boise Cascade Corporation 2,025,000
</TABLE>
See Notes to Financial Statements.
8
..............................................................
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND JUNE 30, 1995
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS -- DOMESTIC (continued)
BASIC INDUSTRIES (CONTINUED)
52,000 Bowater Inc. $ 2,333,500
94,000 Champion International Corporation 4,899,750
126,400 Grace W R & Company 7,757,800
83,300 James River Corporation 2,301,163
25,625 Rayonier Inc. 909,688
------------
21,201,901
------------
TRANSPORTATION -- 4.6%
488,500 Canadian Pacific Limited 8,487,688
55,000 Illinois Central Corporation, Series A 1,897,500
129,400 Lockheed Martin Corporation 8,168,375
65,000 Pittston Services Group 1,560,000
9,000 Volvo Aktie Bolget 172,125
------------
20,285,688
------------
CONSUMER DURABLES -- 2.6%
105,783 Black & Decker Corporation 3,266,050
46,100 Fleetwood Enterprises Inc. 910,475
250,000 Ford Motor Company 7,437,500
------------
11,614,025
------------
REAL ESTATE -- 1.2%
70,700 Associated Estates Realty Corporation 1,493,538
97,000 Avalon Properties Inc. 1,927,875
83,333 Camden Property Trust 1,822,909
------------
5,244,322
------------
COMMUNICATION -- 0.2%
14,000 Tele Danmark, ADR+ 392,000
------------
TOTAL COMMON STOCKS -- DOMESTIC
(Cost $340,119,789) 375,093,886
------------
COMMON STOCKS -- FOREIGN -- 10.5%
JAPAN -- 1.7%
9,450 Chudenko Corporation 374,633
</TABLE>
See Notes to Financial Statements.
9
..............................................................
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND JUNE 30, 1995
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS -- FOREIGN (continued)
JAPAN (CONTINUED)
60,000 Dai-Tokyo Fire & Marine Insurance Company $ 424,754
20,000 Fuji Photo Film Limited 474,308
6,000 Hituchi Koki 52,644
10,000 Ito-Yokado 527,403
40,000 Kao Corporation 481,388
9,000 Mabuchi Motor 620,140
40,000 Mikuni Coca Cola 519,143
50,000 Mitsubishi Heavy Industries 339,803
15,400 Murata Manufacturing Company 565,088
50,000 Nishimatsu Construction Company 589,936
15,000 Nomura Securities Company 261,931
40,000 Sekisui House 495,546
35,000 Sumitomo Corporation 318,801
300 Taihei Dengyo Kaisha Limited 4,566
21,000 Tokai Rubber Industries 203,174
25,000 Toyota Motor Company 495,546
19,000 Yamanouchi Pharmaceutical Company 428,175
35,000 Yamato Transport 409,734
------------
7,586,713
------------
GREAT BRITAIN -- 1.6%
40,000 Abbey National+ 297,751
65,000 Blue Circle Industries+ 289,997
70,000 Boots Company 566,713
25,000 British Airways Ord 163,827
3,000 British Airways Plc, ADR 201,750
70,000 British Gas 322,325
71,837 BTR Ord 365,062
23,000 Hanson Plc, ADR 405,375
90,000 Laird Group Plc+ 503,886
57,102 National Westminster Bank 496,351
60,000 Powergen Ord 461,896
80,862 Scapa Group+ 299,666
30,825 Severn Trent 266,226
</TABLE>
See Notes to Financial Statements.
10
..............................................................
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND JUNE 30, 1995
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS -- FOREIGN (continued)
GREAT BRITAIN (CONTINUED)
50,000 Smithkline Beecham, Plc, ADR $ 2,262,500
------------
6,903,325
------------
SPAIN -- 1.1%
16,000 Corporacion Bancaria De Espana 294,000
60,000 Iberdrola SA 451,765
8,000 Repsol SA 251,641
124,600 Repsol SA, ADR 3,940,475
------------
4,937,881
------------
SWITZERLAND -- 1.1%
750 Ciba-Geigy AG 549,718
450 Magazine Zum Globus 316,544
300 Nestle SA 312,375
118,000 Pharmacia AB, ADR 2,596,000
400 Sandoz AG 275,814
1,200 Schweizerischer Banksverein 425,185
350 Zurich Versicherungs 439,210
------------
4,914,846
------------
SWEDEN -- 0.9%
29,000 AGA AB, Series B 342,865
98,500 Astra AB, Class A, ADR+ 3,053,500
4,500 Mo Och Domsjo, Series B 259,520
13,000 Pharmacia AB, Series A 285,056
------------
3,940,941
------------
NETHERLANDS -- 0.8%
14,953 ABN Amro Holdings 577,082
4,786 Internationale Nederland 264,705
15,300 Royal Dutch Petroleum Company ADR 1,864,688
13,790 Stad Rotterdam CVA 375,565
4,000 Unilever N V, ADR 520,500
------------
3,602,540
------------
</TABLE>
See Notes to Financial Statements.
11
..............................................................
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND JUNE 30, 1995
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS -- FOREIGN (continued)
BERMUDA -- 0.6%
89,500 Ace Limited ADR $ 2,595,500
------------
FRANCE -- 0.6%
1,535 Alcatel Alsthom 138,208
14,100 Alcatel Alsthom, ADR 255,562
1,600 Chargeurs 311,671
10,000 C.S.F. (Thompson)+ 224,065
2,038 Danone 342,800
5,000 Elf Auitaine, ADR 186,250
1,000 Guyenne & Gascogne 288,585
4,246 Societe Generale 496,260
3,095 Societe Nationale Elf Equitiane 228,715
------------
2,472,116
------------
ARGENTINA -- 0.5%
115,000 Ypf Sociedad Anonima, ADR 2,170,625
------------
GERMANY -- 0.4%
2,000 Bayer AG 497,522
10,000 Deutsche Bank AG 485,952
1,000 Siemens AG 347,506
1,400 Veba AG 353,725
------------
1,684,705
------------
AUSTRALIA -- 0.3%
54,000 Amcor Limited 399,157
120,000 Boral 296,809
263,043 Goodman Fielder Limited 218,741
100,000 Southcorp Holdings Limited 199,721
85,635 Westpac Banking Corporation 310,412
------------
1,424,840
------------
HONG KONG -- 0.2%
150,000 Cathay Pacific Airways 219,055
</TABLE>
See Notes to Financial Statements.
12
..............................................................
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND JUNE 30, 1995
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS -- FOREIGN (continued)
HONG KONG (CONTINUED)
40,000 Cheung Kong (Holdings) $ 197,988
27,060 HSBC Ord (Holdings) 347,088
650,000 Yue Yue Industrial (Holdings) 157,925
------------
922,056
------------
MALAYSIA -- 0.2%
106,666 Malaysian International Shipping Corporation 315,228
100,000 Sime Darby Berhad 277,639
------------
592,867
------------
ITALY -- 0.2%
45,000 Fiat Spa Ord 158,759
15,000 Istituto Mobiliare Italiano, ADR 277,500
150,000 Stet, Di Risp (Non Cnv) 333,384
------------
769,643
------------
AUSTRIA -- 0.1%
2,600 Evn Energ Versorg Aush 100 364,054
------------
PORTUGAL -- 0.1%
9,000 Espirito Santo Financial Holdings S.A. 104,625
12,000 Portugal Telcom S.A., ADR 228,000
------------
332,625
------------
BELGIUM -- 0.1%
1,500 Electrabel Com Npv 316,916
------------
MEXICO -- 0.0%
120,000 Telefonos De Mexico, Series L 176,640
------------
NEW ZEALAND -- 0.0%
47,000 Air New Zealand Limited 136,685
------------
TOTAL COMMON STOCKS -- FOREIGN
(Cost $18,279,768) 45,845,518
------------
</TABLE>
See Notes to Financial Statements.
13
..............................................................
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND JUNE 30, 1995
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
WARRANTS -- 0.0%
(Cost $3,671)
534 Chase Manhattan Corporation, Warrants,
Expire 06/30/96+ $ 6,942
------------
PREFERRED STOCK -- FOREIGN -- 0.1%
(Cost $418,818)
1,800 RWE-AG Non Voting Preferred Dm50 495,150
------------
<CAPTION>
PRINCIPAL
AMOUNT
<C> <S> <C>
COMMERCIAL PAPER -- 1.0%
(Cost $4,326,000)
$4,326,000 General Electric Capital Corporation,
6.200% due 7/3/95 4,326,000
------------
TOTAL INVESTMENTS
(Cost $363,148,046*) 97.3% 425,767,496
OTHER ASSETS AND LIABILITIES
(NET) 2.7 11,581,640
----- ------------
NET ASSETS 100.0% $437,349,136
===== ============
<FN>
- --------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
** Security valued at fair value as determined by the Board of Trustees.
+ Non-income producing security.
ADR -- American Depository Receipt
</TABLE>
<TABLE>
SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS
<CAPTION>
CONTRACT VALUE
VALUE DATE (NOTE 1)
<S> <C> <C>
Forward Foreign Exchange Contracts to Buy
(Contract Amount $104,324) 07/03/95 $104,623
65,777 British Pound
</TABLE>
See Notes to Financial Statements.
14
..............................................................
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND JUNE 30, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments, at value (Cost $363,148,046) (Note 1)
See accompanying schedule $425,767,496
Cash and foreign currency (Cost $978,839) 977,926
Receivable for investment securities sold 11,159,368
Dividends and interest receivable 1,415,720
Forward foreign exchange contracts to buy, at value
(Contract cost $104,324) (Note 1)
See accompanying schedule 104,623
Receivable for Fund shares sold 30,490
------------
TOTAL ASSETS 439,455,623
------------
LIABILITIES:
Investment management fee payable (Note 2) $918,039
Payable for investment securities purchased 729,069
Payable for Fund shares redeemed 258,129
Payable for forward foreign exchange contracts to buy 104,324
Distribution fee payable (Note 3) 82,492
Accrued Trustees' fees and expenses (Note 2) 14,434
--------
TOTAL LIABILITIES 2,106,487
------------
NET ASSETS $437,349,136
============
NET ASSETS consist of:
Undistributed net investment income $ 2,681,394
Accumulated net realized gain on securities, forward
foreign exchange contracts and foreign currency
transactions 17,060,202
Net unrealized appreciation of securities, forward
foreign exchange and foreign currency transactions 62,625,964
Paid-in capital 354,981,576
------------
TOTAL NET ASSETS $437,349,136
============
NET ASSET VALUE
INVESTOR SHARES:
Net asset value, offering and redemption price per
share
($365,173,807 / 12,543,136 shares of beneficial
interest outstanding) $29.11
======
INSTITUTIONAL SHARES:
Net asset value, offering and redemption price per
share ($68,399,260 / 2,349,334 shares of beneficial
interest outstanding) $29.11
======
CLASS R SHARES:
Net asset value, offering and redemption price per
share ($3,776,069 / 129,695 shares of beneficial
interest outstanding) $29.11
======
</TABLE>
See Notes to Financial Statements.
15
..............................................................
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes
of $144,594) $ 5,492,085
Interest 389,287
------------
TOTAL INVESTMENT INCOME 5,881,372
------------
EXPENSES:
Investment management fee (Note 2) $1,792,060
Distribution fee (Note 3) 471,641
Trustees' fees and expenses (Note 2) 20,364
Fees waived by the investment manager (Note 2) (20,402)
--------
TOTAL EXPENSES 2,263,663
------------
NET INVESTMENT INCOME 3,617,709
------------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(Notes 1 and 4):
Net realized gain/(loss) on:
Securities transactions 12,836,994
Forward foreign exchange contracts (3,482)
Foreign currencies 113,260
------------
Net realized gain on investments during the
period 12,946,772
------------
Net change in unrealized appreciation of:
Securities 54,898,367
Forward foreign exchange contracts 299
Foreign currencies 4,506
------------
Net unrealized appreciation of investments
during the period 54,903,172
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 67,849,944
------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $71,467,653
============
</TABLE>
See Notes to Financial Statements.
16
..............................................................
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
<CAPTION>
SIX MONTHS
ENDED YEAR
6/30/95 ENDED
(UNAUDITED) 12/31/94
----------- ---------
<S> <C> <C>
Net investment income $ 3,617,709 $ 6,090,607
Net realized gain on securities, forward foreign
exchange contracts and foreign currency
transactions during the period 12,946,772 38,921,441
Net unrealized appreciation/(depreciation) on
securities, forward foreign exchange contracts
and foreign currencies during the period 54,903,172 (42,542,693)
------------ ------------
Net increase in net assets resulting from
operations 71,467,653 2,469,355
Distributions to shareholders from net investment
income:
Investor Shares (formerly Retail Class) (1,237,595) (4,790,982)
Institutional Shares (272,763) (1,036,131)
Class R Shares (formerly Trust Shares) (17,882) (14,497)
Distribution to shareholders from net realized
gains on investments:
Investor Shares (formerly Retail Class) -- (35,173,927)
Institutional Shares -- (7,027,785)
Class R Shares (formerly Trust Shares) -- (147,807)
Net increase/(decrease) in net assets from Fund
share transactions (Note 5):
Investor Shares (formerly Retail Class) (10,510,861) 6,323,234
Institutional Shares (2,606,036) (12,960,250)
Class R Shares (formerly Trust Shares) 2,153,098 1,263,580
------------ ------------
Net increase/(decrease) in net assets 58,975,614 (51,095,210)
NET ASSETS:
Beginning of period 378,373,522 429,468,732
------------ ------------
End of period (including undistributed net
investment income of $2,681,394 and $591,925,
respectively) $437,349,136 $378,373,522
============ ============
</TABLE>
See Notes to Financial Statements.
17
..............................................................
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
..............................................................
- -------------------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
FOR AN INVESTOR CLASS SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<CAPTION>
SIX MONTHS
ENDED YEAR
6/30/95 ENDED
(UNAUDITED) 12/31/94##
----------- ----------
<S> <C> <C>
Net asset value, beginning of period $ 24.56 $ 27.80
-------- --------
Income from investment operations:
Net investment income# 0.24 0.42
Net realized and unrealized gain/(loss) on
investments 4.41 (0.29)
-------- --------
Total from investment operations 4.65 0.13
-------- --------
Less distributions:
Distributions from net investment income (0.10) (0.40)
Distributions from net realized capital gains -- (2.97)
-------- --------
Total Distributions: (0.10) (3.37)
-------- --------
Net asset value, end of period $ 29.11 $ 24.56
======== ========
Total return+ 18.95% 0.38%
======== ========
Ratios to average net assets/
supplemental data:
Net assets, end of period (in 000's) $365,174 $317,868
Ratio of operating expenses to average
net assets++ 1.13%** 1.11%
Ratio of net investment income to average
net assets 1.76%** 1.47%
Portfolio turnover rate++++ 31% 73%
<FN>
- --------------------------------------------------------------------------------
* On February 1, 1993 existing shares of the Fund were designated the Retail Class
and the Fund began offering the Institutional Class shares. Effective April 4,
1994 the Retail Class shares were reclassified as Investor Shares.
** Annualized.
+ Total return represents aggregate total return for the periods indicated.
++ Without the voluntary reimbursement of expenses and/or waiver of fees by the
investment adviser the annualized ratio of operating expenses to average net
assets for the six months ended June 30, 1995 and for the years ended December
31, 1994 and 1993 would have been 1.15%, 1.12% and 1.16%, respectively.
+++ Per share amounts have been calculated using the monthly average share method,
which more appropriately presents the per share data for this year since the use
of the undistributed net investment income method did not accord with results of
operations.
</TABLE>
See Notes to Financial Statements.
18
..............................................................
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (CONTINUED)
..............................................................
-----------------------------------------------------------------------
<CAPTION>
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/93+++ 12/31/92 12/31/91 12/31/90+++ 12/31/89
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------
$ 25.46 $ 27.40 $ 23.20 $ 27.49 $ 28.65
-------- -------- -------- -------- --------
0.31 0.36 0.39 0.55 0.87
3.86 0.70 4.88 (4.23) 6.12
-------- -------- -------- -------- --------
4.17 1.06 5.27 (3.68) 6.99
-------- -------- -------- -------- --------
(0.30) (0.36) (0.50) (0.55) (0.55)
(1.53) (2.64) (0.57) (0.06) (7.60)
-------- -------- -------- -------- --------
(1.83) (3.00) (1.07) (0.61) (8.15)
-------- -------- -------- -------- --------
$ 27.80 $ 25.46 $ 27.40 $ 23.20 $ 27.49
======== ======== ======== ======== ========
16.51% 4.03% 22.87% (13.44)% 24.96%
======== ======== ======== ======== ========
$349,813 $423,286 $508,971 $474,998 $640,116
1.15% 1.22% 1.20% 1.26% 1.23%
1.13% 1.33% 1.61% 1.96% 2.75%
75% 66% 157% 180% 111%
<FN>
- ---------------------------------------------------------------------------------------
++++ In accordance with the Securities and Exchange Commission's July 1985 rules
amendment, the rates for 1986 and later periods include U.S. Government
long-term securities which were excluded from the calculations in prior years.
# Without voluntary waiver of fees and/or reimbursement of expenses by the
investment adviser, net investment income for the six months ended June 30, 1995
and for the years ended December 31, 1994 and 1993 would have been $0.24, $0.42
and $0.31, respectively.
## Prior to April 4, 1994, The Boston Company Advisors, Inc. served as the Fund's
investment adviser. From April 4, 1994 through October 16, 1994, Mellon Bank,
N.A. served as the Fund's investment manager. Effective October 17, 1994, The
Dreyfus Corporation serves as the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
19
..............................................................
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (CONTINUED)
..............................................................
- ----------------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
FOR AN INVESTOR CLASS SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<CAPTION>
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/88 12/31/87 12/31/86 12/31/85
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
Net asset value, beginning of period $ 26.07 $ 32.40 $ 32.11 $ 25.91
-------- -------- -------- --------
Income from investment operations:
Net investment income# 0.54 0.76 0.90 1.00
Net realized and unrealized gain/(loss) on
investments 4.51 (0.41) 5.69 7.50
-------- -------- -------- --------
Total from investment operations 5.05 0.35 6.59 8.50
-------- -------- -------- --------
Less distributions:
Distributions from net investment income (0.59) (1.32) (0.50) (0.74)
Distributions from net realized capital gains (1.88) (5.36) (5.80) (1.56)
-------- -------- -------- --------
Total Distributions: (2.47) (6.68) (6.30) (2.30)
-------- -------- -------- --------
Net asset value, end of period $ 28.65 $ 26.07 $ 32.40 $ 32.11
======== ======== ======== ========
Total return+ 19.54% 0.27% 22.48% 35.00%
======== ======== ======== ========
Ratios to average net assets/
supplemental data:
Net assets, end of period (in 000's) $542,510 $431,630 $452,863 $369,610
Ratio of operating expenses to average
net assets++ 1.31% 0.95% 0.95% 0.96%
Ratio of net investment income to average
net assets 2.14% 2.16% 2.65% 3.60%
Portfolio turnover rate+++ 24% 46% 37% 59%
<FN>
- ----------------------------------------------------------------------------------------
* On February 1, 1993 existing shares of the Fund were designated the Retail Class
and the Fund began offering the Institutional Class shares. Effective April 4,
1994 the Retail Class shares were reclassified as Investor Shares.
** Annualized.
+ Total return represents aggregate total return for the periods indicated.
++ Without the voluntary reimbursement and/or waiver of fees by the investment
adviser the annualized ratio of expenses to average net assets for the years
ended December 31, 1994 and 1993 would have been 1.12% and 1.16%, respectively.
+++ In accordance with the Securities and Exchange Commission's July 1985 rules
amendment, the rates for 1986 and later periods include U.S. Government
long-term securities which were excluded from the calculations in prior years.
# Without voluntary waiver of fees or reimbursement of expenses by investment
adviser, net investment income for the years ended December 31, 1994 and 1993
would have been $0.42 and $0.31, respectively.
</TABLE>
See Notes to Financial Statements.
20
..............................................................
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
FOR AN INSTITUTIONAL CLASS SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<CAPTION>
SIX MONTHS
ENDED YEAR PERIOD
6/30/95 ENDED ENDED
(UNAUDITED) 12/31/94## 12/31/93+++
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------
Net asset value, beginning of period $ 24.56 $ 27.80 $ 25.96
------- ------- -------
Income from investment operations:
Net investment income# 0.26 0.47 0.32
Net realized and unrealized gain/(loss)
on investments 4.39 (0.31) 3.38
------- ------- -------
Total from investment operations 4.65 0.16 3.70
------- ------- -------
Less distributions:
Distributions from net investment income (0.10) (0.43) (0.33)
Distributions from net realized capital
gains -- (2.97) (1.53)
------- ------- -------
Total Distributions: (0.10) (3.40) (1.86)
------- ------- -------
Net asset value, end of period $ 29.11 $ 24.56 $ 27.80
======= ======= =======
Total return+ 18.98% 0.49% 14.38%
======= ======= =======
Ratios to average net assets/
supplemental data:
Net assets, end of period (in 000's) $68,399 $59,435 $79,656
Ratio of operating expenses to average
net assets++ 1.03%** 1.02% 1.04%**
Ratio of net investment loss to average
net assets 1.86%** 1.57% 1.24%**
Portfolio turnover rate++++ 31% 73% 75%
<FN>
- --------------------------------------------------------------------------------
* On February 1 ,1993, the Fund commenced selling Institutional shares.
** Annualized.
+ Total return represents aggregate total return for the periods indicated.
++ Without the voluntary reimbursement of expenses and/or waiver of fees by the
investment adviser and/or investment manager the annualized ratio of expenses to
average net assets for the six months ended June 30, 1995 and for the year ended
December 31, 1994 and for the period ended December 31, 1993 would have been
1.05%, 1.03% and 1.04%, respectively.
+++ Per share amounts have been calculated using the monthly average share method,
which more appropriately presents the per share data for this year since the use
of the undistributed net investment income method did not accord with results of
operations.
++++ In accordance with the Securities and Exchange Commission's July 1985 rules
amendment, the rates for 1986 and later periods include U.S. Government
long-term securities which were excluded from the calculations in prior years.
# Net investment income before the voluntary waiver of fees and/or reimbursement
of expenses by the investment adviser and/or investment manager for the year
ended December 31, 1994 and for the period ended December 31, 1993 would have
been $0.26, $0.46 and $0.31, respectively.
## Prior to April 4, 1994, The Boston Company Advisors, Inc. served as the Fund's
investment adviser. From April 4, 1994 through October 16, 1994, Mellon Bank,
N.A. served as the Fund's investment manager. Effective October 17, 1994, The
Dreyfus Corporation serves as the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
21
..............................................................
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
..............................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<CAPTION>
SIX MONTHS
ENDED PERIOD
6/30/95 ENDED
(UNAUDITED) 12/31/94##
<S> <C> <C>
- ---------------------------------------------------------------------------------
Net asset value, beginning of period $24.56 $28.45
------ ------
Income from investment operations:
Net investment income# 0.26 0.29
Net realized and unrealized gain/(loss) on
investments 4.40 (0.83)
------ ------
Total from investment operations 4.66 (0.54)
------ ------
Less distributions:
Distributions from net investment income (0.11) (0.38)
Distributions from net realized capital gains -- (2.97)
------ ------
Total Distributions: (0.11) (3.35)
------ ------
Net asset value, end of period $29.11 $24.56
====== ======
Total return+ 19.02% (2.31)%
====== ======
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $3,776 $1,070
Ratio of operating expenses to average net assets++ 0.88%** 0.86%**
Ratio of net investment income to average net assets 2.01%** 1.72%**
Portfolio turnover rate 31% 73%
<FN>
- --------------------------------------------------------------------------------
* On April 4, 1994, the Fund commenced selling Trust shares. Effective October 17,
1994 the Trust shares were reclassified as Class R shares.
** Annualized.
+ Total return represents aggregate total return for the periods indicated.
++ Without the voluntary reimbursement of expenses and/or waiver of fees by the
investment manager, the ratio of expenses to average net assets for the six
months ended June 30, 1995 and for the period ended December 31, 1994 would have
been 0.90% and 0.88%, respectively.
# Net investment income before the voluntary waiver of fees by the investment
manager for the period ended December 31, 1994 would have been $0.26 and $0.29,
respectively.
## From April 4, 1994 through October 16, 1994, Mellon Bank, N.A. served as the
Fund's investment manager. Effective October 17, 1994 The Dreyfus Corporation
serves as the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
22
..............................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
..............................................................
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Funds Trust (the "Trust") (formerly The Boston Company
Fund), The Dreyfus/Laurel Tax-Free Municipal Funds, The Dreyfus/Laurel Funds,
Inc. and The Dreyfus/Laurel Investment Series are all registered open-end
investment companies that are now a part of The Dreyfus Family Funds. The
Trust is an investment company which consists of four funds: Premier Limited
Term Government Securities Fund, Dreyfus Core Value Fund, Premier Managed
Income Fund and Dreyfus Special Growth Fund. These financial statements
report on Dreyfus Core Value Fund ("the Fund"). The Trust is a Massachusetts
business trust and is registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, as amended (the "1940 Act"), as a
diversified, open-end management investment company. The Fund currently
offers three classes of shares: Investor, Institutional and Class R shares.
Investor shares are sold primarily to retail investors and bear a
distribution fee. Institutional shares are offered only to those customers of
certain financial planners and investment advisers who held shares of a
predecessor class of the Fund as of April 4, 1994, and bear a distribution
fee. Class R shares are sold primarily to bank trust departments and other
financial service providers (including Mellon Bank N.A. ("Mellon Bank") and
its affiliates) acting on behalf of customers having a qualified trust or
investment account or relationship at such institution and bear no
distribution fee.. Each class of shares has identical rights and privileges
except with respect to the distribution fees and voting rights on matters
affecting a single class. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements.
(A) PORTFOLIO VALUATION
Investments in securities traded on a national securities exchange are valued
at the last reported sales price or, in the absence of a recorded sale, at
the mean of the closing bid and asked prices. Over-the-counter securities are
valued at the mean of the closing bid and asked prices. When market
quotations for securities are not readily available, the securities are
valued at fair value, as determined in good faith by the Board of Trustees.
Options are generally valued at the last sale price or, in the absence of a
last sale price, the last bid price. Bonds are valued through valuations
obtained from a commercial pricing service or at the most recent mean of the
bid and asked prices provided by investment dealers in accordance with
procedures established by the Board of Trustees. Debt securities with
maturities of 60 days or less from the valuation day are valued on the basis
of amortized cost which approximates market value. Foreign securities are
generally valued at the preceding closing values of such securities on their
respective exchanges, except that when an occurrence subsequent to the time a
value was so established is likely to have changed such value. Then the fair
value of those securities will be determined by consideration of other
factors by or under the direction of the Board of Trustees or its delegates.
23
..............................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
..............................................................
(B) REPURCHASE AGREEMENTS
The Fund may engage in repurchase agreement transactions. Under the terms of
a typical repurchase agreement, the Fund through its custodian, takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an
agreed-upon price and time, thereby determining the yield during the Fund's
holding period. This arrangement results in a fixed rate of return that is
not subject to market fluctuations during the Fund's holding period. The
value of the collateral is at least equal at all times to the total amount of
the repurchase obligations, including interest. In the event of counterparty
default, the Fund has the right to use the collateral to offset losses
incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Fund's investment manager, acting under the supervision of the
Board of Trustees, reviews the value of the collateral and the
creditworthiness of those banks and dealers with which the Fund enters into
repurchase agreements to evaluate potential risks.
(C) FORWARD FOREIGN CURRENCY CONTRACTS
The Fund uses forward foreign currency contracts to hedge risks on foreign
currency denominated transactions and holdings. The Fund generally enters
into forward contracts as a hedge, in connection with the purchase or sale of
a security denominated in foreign currency. Forward contracts may also be
used to shift portfolio currency risks, though the Fund does not employ
forwards for this purpose at the present time.
Forward foreign currency contracts are valued at the forward rate and are
marked-to-market daily. The change in market value is recorded by the Fund as
an unrealized gain or loss. When the contract is closed, the fund records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and at the value at the time it was
closed.
The use of forward foreign currency contracts does not eliminate fluctuations
in the underlying process of the Fund's investment securities, but it does
establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline in
the value of the hedged currency, they also limit any potential gain that
might result should the value of the currency increase. In addition, the Fund
could be exposed to risks if the counterparties to the contracts are unable
to meet the terms of their contracts.
(D) FOREIGN CURRENCY
The books and records of the Fund are maintained in the United States (U.S.)
dollars. Foreign currencies, investments and other assets and liabilities are
translated into U.S. dollars at the exchange rates prevailing at the end of
the period, and purchase and sales of investment securities, income and
expenses are translated on the respective dates of
24
..............................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
..............................................................
such transactions. Unrealized gains and losses which result from changes in
the foreign currency exchange rates have been included in the unrealized
appreciation/(depreciation) of investments and net other assets. Net realized
foreign currency gains and losses resulting from changes in exchange rates
include foreign currency gains and losses between trade date and settlement
date on investment securities transactions, foreign currency transactions and
the difference between the amounts of interest and dividends recorded on the
books of the Fund and the amount actually received. The portion of foreign
currency gains and losses related to fluctuation in exchange rates between
the initial purchase trade date and subsequent sale trade date is included in
realized gains and losses on investment securities sold.
(E) OPTION CONTRACTS
The Fund may enter into option transactions. The Fund generally purchases put
options or writes covered call options to hedge against adverse movements in
the value of the portfolio holdings. When the Fund purchases a put option or
a call option, the premium paid is recorded as an investment, the value of
which is marked-to-market daily. When a purchased option expires, the Fund
will realize a loss in the amount of the cost of the option. When the Fund
enters into a closing sale transaction, the Fund will realize a gain or loss
depending on whether the sales proceeds from the closing sale transaction are
greater or less than the cost of the option. When the Fund exercises a put
option, it will realize a gain or loss from the sale of the underlying
security and the proceeds from such sale will be decreased by the premium
originally paid. When the Fund exercises a call option, the cost of the
security which the Fund purchases upon exercise will be increased by the
premium originally paid.
When a Fund writes a call option or a put option, an amount equal to the
premium received by the Fund is recorded as a liability, the value of which
is marked-to-market daily. When a written option expires the Fund realizes a
gain equal to the amount of the premium received. When the Fund enters into a
closing purchase transaction, the Fund realizes a gain (or loss if the cost
of the closing purchase transaction exceeds the premium received when the
option was sold) without regard to any unrealized gain or loss on the
underlying security, and the liability related to such option is eliminated.
When a call option is exercised, the Fund realizes a gain or loss from the
sale of the underlying security and the proceeds from such sale are increased
by the premium originally received. When a put option is exercised, the
amount of the premium originally received will reduce the cost of the
security which the Fund purchased upon exercise.
The risk associated with purchasing options is limited to the premium
originally paid. The risk in writing a call option is that the Fund may
forego the opportunity of profit if the market price of the underlying
security increases and the option is exercised. The risk in writing a put
option is that the Fund may incur a loss if the market price of the
underlying security decreases and the option is exercised. In addition, there
is the risk
25
..............................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
..............................................................
the Fund may not be able to enter into a closing transaction because of an
illiquid secondary market.
(F) EXPENSE ALLOCATION
Expenses of the Fund not directly attributable to the operations of any class
of shares are prorated among the classes based upon the relative average
daily net assets of each class. Distribution expense is directly attributable
to a particular class of shares and is charged only to that class'
operations.
(G) SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Dividend income is
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis. Realized gains or losses on sales of investments are determined on the
basis of identified cost. Investment income and realized gains and losses are
allocated based upon relative net assets of each class of shares.
(H) DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income, if any, of the Fund are determined
on a class level and are declared and paid four times yearly. The Fund
distributes any net realized capital gains on a Fund level annually.
Distribution to shareholders are recorded on the ex-dividend dates.
Additional distributions of net investment income and capital gains for the
Fund may be made at the discretion of the Board of Trustees in order to avoid
the 4.00% nondeductible Federal excise tax. Income distributions and capital
gain distributions on a Fund level are determined in accordance with income
tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Fund, timing
differences and differing characterization of distributions made by the Fund
as a whole.
(I) FEDERAL TAXES
It is the Fund's policy to qualify as a regulated investment company, if such
qualification is in the best interest of its shareholders, by complying with
the requirements of the Internal Revenue Code applicable to regulated
investment companies and by distributing all of its taxable income to its
shareholders. Therefore, no Federal income tax provision is required.
2. INVESTMENT MANAGEMENT FEE, TRUSTEES' FEES AND OTHER PARTY TRANSACTIONS
The Trust has an investment management agreement with The Dreyfus Corporation
(the "Manager"), a wholly-owned subsidiary of Mellon Bank. The Manager
provides, or arranges for one or more third parties to provide, investment
advisory, administrative, custody, fund accounting and transfer agency
services to the Trust. The Manager also directs the investments of the Fund
in accordance with its investment objective, policies
26
..............................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
..............................................................
and limitations. For these services, the Fund is contractually obligated to
pay the Manager a fee, calculated daily and paid monthly, at the annual rate
of 0.90% of the value of the Fund's average daily net assets. The Manager has
voluntarily agreed to waive this fee to 0.88% of the Fund's average daily net
assets excluding certain fees outlined below. For the six months ended June
30, 1995, the investment manager waived $20,402. Out of its fee, the Manager
pays all of the expenses of the Fund except brokerage fees, taxes, interest,
Rule 12b-1 distribution fees and expenses, fees and expenses of
non-interested trustees (including counsel fees) and extraordinary expenses.
In addition, the Manager is required to reduce its fee in an amount equal to
the Fund's allocable portion of fees and expenses of the non-interested
trustees (including counsel).
Premier Mutual Fund Services, Inc. ("Premier") serves as the Trust's
distributor. Premier also serves as the Trust's sub-administrator and,
pursuant to a sub-administration agreement with the Manager, provides various
administrative and corporate secretarial services to the Trust.
No officer or employee of Premier (or of any parent, subsidiary or affiliate
thereof) receives any compensation from The Dreyfus/Laurel Funds, Inc., the
Trust, The Dreyfus/Laurel Tax-Free Municipal Funds or The Dreyfus/Laurel
Investment Series (collectively, "The Dreyfus/Laurel Funds") for serving as
an officer or Director or Trustee of The Dreyfus/Laurel Funds. In addition,
no officer or employee of the Manager (or of any parent, subsidiary or
affiliate thereof) serves as an officer or Director or Trustee of The
Dreyfus/Laurel Funds. The Dreyfus/Laurel Funds pay each Director or Trustee
who is not an officer or employee of Premier (or any parent, subsidiary or
affiliate thereof), $27,000 per annum, $1,000 for each Board meeting attended
and $750 for each Audit Committee meeting attended, and reimburse each
Director or Trustee for travel and out-of-pocket expenses.
3. DISTRIBUTION PLAN
Investor and Institutional shares are subject to a distribution plan (the
"Plan") adopted pursuant to Rule 12b-1 of the 1940 Act. Under the Plan, the
Fund may pay up to 0.25% of the value of the average daily net assets of
Investor shares and up to 0.15% of the value of the average daily net assets
of Institutional shares to compensate Premier for activities primarily
intended to result in the sale of the respective class of shares and Premier
and Dreyfus Service Corporation, an affiliate of the Manager, for shareholder
servicing activities. The Class R shares bear no distribution fee.
For the six months ended June 30, 1995, the distribution fees for Investor
and Institutional shares were $420,881 and $50,760, respectively.
27
..............................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
..............................................................
Under its terms, the Plan shall remain in effect from year to year, provide
such continuance is approved annually by a vote of a majority of the Trustees
and a majority of the Trustees who are not "interested person" of the Trust
and who have no direct or indirect financial interest in the operation of the
Plan or in any agreement related to the Plan.
4. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities, excluding short-term
investments and U.S. government securities, for the six months ended June 30,
1995 were $120,919,006 and $134,027,849, respectively.
At June 30, 1995, aggregate gross unrealized appreciation for all securities
in which there is an excess of value over tax cost and aggregate gross
unrealized depreciation for all securities in which there is an excess of tax
cost over value were $68,872,983 and $6,253,533, respectively.
<TABLE>
5. SHARES OF BENEFICIAL INTEREST
The Trust has the authority to issue an unlimited number of shares of
beneficial interest of four separate investment portfolios, without par
value. The Fund offers three classes of shares.
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
June 30, 1995 December 31, 1994
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR SHARES (formerly
Retail Class):
Sold 626,634 $ 16,796,439 1,267,535 $ 35,429,803
Issued as reinvestment of
dividends and
distributions 40,155 1,099,589 1,410,642 35,673,508
Redeemed (1,067,548) (28,407,947) (2,315,216) (64,780,077)
---------- ------------ ---------- ------------
Net increase/(decrease) (400,795) $(10,510,861) 362,961 $ 6,323,234
========== ============ ========== ============
- ---------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
June 30, 1995 December 31, 1994
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSTITUTIONAL SHARES:
Sold 1,911,165 $ 50,240,029 12,106,152 $ 342,392,264
Issued as reinvestment of
dividends and
distributions 9,648 264,545 295,150 7,485,142
Redeemed (1,991,719) (53,110,610) (12,845,855) (362,837,656)
---------- ------------ ----------- -------------
Net decrease (70,906) $ (2,606,036) (444,553) $ (12,960,250)
========== ============ =========== =============
- ---------------------------------------------------------------------------------------
</TABLE>
28
..............................................................
<PAGE>
<TABLE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
..............................................................
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
June 30, 1995 December 31, 1994*
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS R SHARES:
(formerly Trust
Shares:)
Sold 136,701 $ 3,559,383 63,627 $1,806,424
Issued as reinvestment of
dividends and
distributions 19 518 4,890 123,153
Redeemed (50,613) (1,406,803) (24,929) (665,997)
------- ----------- ------- ----------
Net increase 86,107 $ 2,153,098 43,588 $1,263,580
======= =========== ======= ==========
- ------------------------------------------------------------------------------------
<FN>
* The Fund commenced selling Trust shares on April 4, 1994. Effective October
17, 1994, the Trust shares were reclassified as Class R shares.
</TABLE>
6. FOREIGN SECURITIES
The Fund may purchase securities of foreign issuers. Investing in securities
of foreign companies and foreign governments involves special risks and
considerations not typically associated with investing in U.S. companies and
the U.S. government. These risks include revaluation of currencies and future
adverse political and economic developments. Moreover, securities of many
foreign companies and foreign governments and their markets may be less
liquid and their prices more volatile than those of securities of comparable
U.S. companies and the U.S. government.
29
..............................................................
<PAGE>
FOR MORE INFORMATION ON YOUR FUND, INCLUDING:
* General Fund Information.
* Additional Prospectuses - Read the prospectus carefully before you invest.
* Account Information.
* Yield and Share Price Information.
CALL 1-800-645-6561
24 HOURS A DAY, 7 DAYS A WEEK.
Or write:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
Further information is contained
in the Prospectus, which must
precede or accompany this report.
The Fund is distributed by:
Premier Mutual Fund Services, Inc.
One Exchange Place 10th floor
Boston, MA 02109 CORESA956
<PAGE>
SEMI-ANNUAL REPORT
[Photo...small box above fund name
showing a lions face.]
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
JUNE 30, 1995
<PAGE>
DEAR SHAREHOLDER,
We are pleased to provide you with the Premier Limited Term Government
Securities Fund's Semi-Annual Report for the six months ended June 30, 1995.
In the pages that follow, we have provided you with a description of the
market environment, a commentary on the Fund's investment strategy and
detailed financial statements for the past six months.
As you know, the Fund has been integrated into The Dreyfus Family of Funds.
We hope that you found the transition from The Laurel Funds to The Dreyfus
Family of Funds to be a smooth one. The extended family of funds now offers
you more investment alternatives in addition to expanded services and
privileges to better serve your investment needs.
We would like to extend our appreciation for your support of The Dreyfus
Family of Funds and hope that the Fund will continue to satisfy your
investment needs. As always, we welcome your thoughts and suggestions.
Sincerely,
/s/ Marie E. Connolly
----------------------------------
Marie E. Connolly
President
The Dreyfus/Laurel Funds Trust --
Premier Limited Term Government Securities Fund
August 18, 1995
1
- --------------------------------------------------------------------------------
<PAGE>
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Shareholder Letter.......................................................... 1
Economic Review............................................................. 3
Portfolio Overview.......................................................... 4
Portfolio of Investments.................................................... 6
Statement of Assets and Liabilities........................................... 8
Statement of Operations....................................................... 9
Statement of Changes in Net Assets........................................... 10
Financial Highlights......................................................... 12
Notes to Financial Statements................................................ 15
2
- --------------------------------------------------------------------------------
<PAGE>
ECONOMIC REVIEW
- --------------------------------------------------------------------------------
GROWTH SLOWDOWN IS MARKED BUT NOT RECESSIONARY
The economic slowdown long hoped for by many analysts and strongly pursued by
the Federal Reserve Board finally took hold over the past six months. In
fact, the economy slowed more than expected. The so-called leading indicators
posted three consecutive monthly drops, with economic activity contracting in
the spring quarter for the first time in four years. Employment weakness in
April and May signified that the slowdown had begun to erode the economy's
income-generating capacity somewhat, slowing down the advance in spendable
income.
Nonetheless, we are confident that a recession is not underway. First of all,
the economy is not exhibiting the financial stresses and imbalances that
often mark the end of an expansion. For example, business balance sheets are
strong, even at smaller companies. Many firms have also built a cushion into
profit margins by reducing fixed labor costs like health care benefits.
Consumer financial positions are in excellent shape, allowing leeway to
survive a no-growth, low-inflation environment. Rallies in stock and bond
markets have boosted consumer net worth. Meanwhile, borrowing is vigorous and
we believe should remain so, further spurring consumer spending.
A second comforting factor is the unprecedented speed with which businesses
have adjusted their production schedules to the new economic realities. By
limiting the buildup of unwanted inventories, businesses have lowered their
operating rates considerably. Furthermore, business caution is extending into
the third quarter. While this low production may result in sluggish overall
growth during the summer, it should help keep a better balance between supply
and demand.
A BRIGHTER INFLATION OUTLOOK
Economic deceleration is exactly what the Fed wanted to cool rising inflation
expectations, and we believe it's working. The abrupt character of the
slowdown has shocked some businesses who now think they cannot raise prices
and keep their customers. Auto incentives are proliferating, and now steel
makers have begun to cut prices to win market share. Even basic materials
producers are offering price cuts, as last year's speculative inventory
build-ups now seem counterproductive.
In general, lower operating costs are opening a gap between supply and demand
that is alleviating price increase pressure, and while the dollar's decline
could be expected to generate higher import prices that would add to domestic
price pressures, import prices are actually not rising any faster than
domestically-produced finished goods. In other words, a selective and
value-conscious consumer has the upper hand with both domestic and imported
suppliers.
3
- --------------------------------------------------------------------------------
<PAGE>
ECONOMIC REVIEW (CONTINUED)
- --------------------------------------------------------------------------------
BOND MARKET GAINS CONTINUE
With inflation seemingly in check and the economy slowing down nicely, bond
market investors reaped benefits in the form of exceptional returns. In fact,
the second quarter of 1995 posted the market's largest quarterly gain since
1989. The main benchmark index of corporate, government, and mortgage-backed
securities, the Lehman Brothers Government/Corporate Bond Index was up over
6% for the quarter. Corporate bonds provided the best returns, followed
closely by Treasury securities. Mortgage-backed securities were up but lagged
the other two sectors largely based on speculation that low 30-year mortgage
rates may soon spur another round of homeowner refinancing.
By and large, the economy's unanticipated weakness drove the market's rise.
Fourth quarter 1994 GDP growth was 5%; first quarter GDP growth was just
2.7%. Lots of data substantiated the deceleration, including slower home
sales, lower durable goods orders, lower industrial production numbers and in
particular, weak employment statistics. Early second quarter statistics
continued to show some economic weakness, although improved spring retail
activity and new home sales were among the signs that a pickup could get
underway soon.
FED BEGINS TO EASE
Against this backdrop, the Fed began to ease monetary policy cautiously in
July by cutting the Federal funds rate 25 basis points. With the inflation
picture improving and economic growth at a stand still, policymakers decided
to take back a small portion of the restraining measures they had engineered
since early 1994. Markets are now wary, because if economic statistics
continue to improve, the Fed may be less likely to institute additional
interest-rate declines. However, we believe the Fed will probably view the
economic outlook as sufficiently uncertain to consider more easing moves.
Inflation pressures are abating and keeping the Fed funds rate steady in this
situation could in fact restrict additional economic growth. For this reason,
we anticipate additional incremental interest-rate declines leading to a Fed
funds rate of near 5% by year end.
PORTFOLIO OVERVIEW
- --------------------------------------------------------------------------------
For the six month period ended June 30, 1995, the Premier Limited Term
Government Securities Fund provided a total return of 9.79%* for Class A
shares and 9.52%* for Class B shares. This compares with a total return of
9.66% for the Fund's benchmark, the Lipper Intermediate U.S. Government
Funds.**
During the period, the Fund invested primarily in U.S. Treasury securities
with maturities ranging between three and eight years. This intermediate
sector of the government securities market performed quite well on a relative
basis, as yields on short-term securities declined more than those on
long-term securities.
4
- --------------------------------------------------------------------------------
<PAGE>
PORTFOLIO OVERVIEW (CONTINUED)
- --------------------------------------------------------------------------------
Anticipating the bond market's strong rally in the first and second quarters
of 1995, we also extended the Fund's duration slightly to capture the
market's appreciation potential. This resulted in higher returns for the
portfolio with a longer average duration.
Going forward, we will be monitoring the Federal Reserve Board and the
economy carefully for signs of change. At present, we intend to continue our
current course of maintaining a slightly longer portfolio duration and
emphasizing intermediate government securities.
- ---------------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested, without taking into account the maximum
front-end sales load of 3.0% in the case of Class A shares and the applicable
contingent deferred sales charge ("CDSC") in the case of Class B shares. With
the sales charge and CDSC, the total return for the Class A and Class B
shares would have been 6.49% and 6.52%, respectively.
** Lipper Intermediate U.S. Government Funds Average is the average cumulative
total reinvestment performance of funds which invest at least 65% of assets
in securities issued or guaranteed by the U.S. Government, its agencies or
instrumentalities with dollar-weighted average maturities of 5 to 10 years.
5
- --------------------------------------------------------------------------------
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND JUNE 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL INTEREST MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
<S> <C> <C> <C> <C>
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 92.4%
U.S. TREASURY NOTES -- 91.5%
$3,500,000 U.S Treasury Notes 7.125 10/15/98 $ 3,624,740
3,000,000 U.S Treasury Notes 7.000 04/15/99 3,104,910
3,000,000 U.S Treasury Notes 7.750 01/31/00 3,205,980
100,000 U.S Treasury Notes 7.125 02/29/00 104,498
3,000,000 U.S Treasury Notes 5.500 04/15/00 2,941,740
470,000 U.S Treasury Notes 5.875 02/15/04 458,960
1,106,000 U.S Treasury Notes 6.500 05/15/05 1,130,089
----------
14,570,917
----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 0.9%
136,434 Small Business Administration 9.875 04/25/03 140,527
----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $14,203,542) 14,711,444
----------
MORTGAGE-BACKED
SECURITIES -- 5.9%
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA)
CERTIFICATES -- 5.8%
11,533 GNMA 9.000 02/15/19 12,096
366,419 GNMA 9.000 02/15/20 384,131
220,302 GNMA 9.000 09/15/21 230,784
70,687 GNMA 9.500 10/15/09 74,730
74,823 GNMA 10.000 05/15/19 81,010
30,517 GNMA 10.500 02/15/14 33,297
61,307 GNMA 10.500 04/15/16 66,903
33,628 GNMA 11.500 12/15/15 37,315
--------
920,266
--------
</TABLE>
6 See Notes to Financial Statements.
- --------------------------------------------------------------------------------
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND JUNE 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL INTEREST MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
<S> <C> <C> <C> <C>
MORTGAGE-BACKED SECURITIES (continued)
FEDERAL HOME LOAN MORTGAGE CORPORATION
(FHLMC) CERTIFICATES -- 0.1%
$ 6,273 FHLMC, (Group #17-0147) 11.000 11/01/15 $ 6,844
-----------
TOTAL MORTGAGE-BACKED
SECURITIES
(Cost $889,483) 927,110
-----------
TOTAL INVESTMENTS
(Cost $15,093,025*) 98.3% 15,638,554
OTHER ASSETS AND LIABILITIES (NET) 1.7 275,827
----- -----------
NET ASSETS 100.0% $15,914,381
===== ===========
</TABLE>
- --------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
See Notes to Financial Statements. 7
- --------------------------------------------------------------------------------
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (Cost $15,093,025) (Note 1)
See accompanying schedule $15,638,554
Cash 23,580
Interest receivable 259,431
Receivable for Fund shares sold 50,000
Receivable for investment securities sold 89
Receivable from investment advisor 73
-----------
TOTAL ASSETS 15,971,727
-----------
LIABILITIES:
Investment management fee payable (Note 2) $23,839
Payable for Fund shares redeemed 21,247
Dividends payable 8,383
Distribution fee payable (Note 3) 3,314
Accrued Trustees' fees and expenses (Note 2) 541
Service fee payable (Note 3) 22
-------
TOTAL LIABILITIES 57,346
-----------
NET ASSETS $15,914,381
===========
NET ASSETS consist of:
Undistributed net investment income $ 2,388
Accumulated net realized loss on investments sold (478,376)
Unrealized appreciation of investments 545,529
Paid-in capital 15,844,840
-----------
TOTAL NET ASSETS $15,914,381
===========
NET ASSET VALUE:
CLASS A SHARES:
Net asset value and redemption price per share
($15,760,969 - 1,245,031 shares of beneficial interest
outstanding) $12.66
======
Maximum offering price per share ($12.66 - .97)
(based on sales charge of 3.0% of the offering price
at June 30, 1995) $13.05
======
CLASS B SHARES:
Net asset value and offering price per share(+)
($153,380 - 12,117 shares of beneficial interest
outstanding) $12.66
======
CLASS C SHARES:
Net asset value and offering price per share(+)
($16.21 - 1.280 shares of beneficial interest
outstanding) $12.66
======
CLASS R SHARES
Net asset value and offering and redemption price per
share
($15.50 - 1.224 shares of beneficial interest
outstanding) $12.66
======
</TABLE>
- --------------------------------------------------------------------------------
(+) Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
8 See Notes to Financial Statements.
- --------------------------------------------------------------------------------
<PAGE>
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 594,916
----------
EXPENSES:
Investment management fee (Note 2) $49,627
Distribution fee (Note 3) 21,088
Trustees' fees and expenses (Note 2) 841
Service fee (Note 3) 70
-------
TOTAL EXPENSES 71,626
----------
NET INVESTMENT INCOME 523,290
----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS (Notes 1 and 4):
Net realized loss on investments sold during
the period (284,195)
----------
Net change in unrealized appreciation of
investments during the period 1,345,207
----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 1,061,012
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $1,584,302
==========
</TABLE>
See Notes to Financial Statements. 9
- --------------------------------------------------------------------------------
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
6/30/95 ENDED
(UNAUDITED) 12/31/94
<S> <C> <C>
Net investment income $ 523,290 $ 1,122,433
Net realized loss on investments sold during
the period (284,195) (183,515)
Net unrealized appreciation/(depreciation)
on investments during the period 1,345,207 (1,875,149)
----------- -----------
Net increase/(decrease) in net assets
resulting from operations 1,584,302 (936,231)
Distributions to shareholders from net
investment income:
Class A (521,805) (942,903)
Institutional Class -- (179,530)
Class B (1,485) --
Net increase/(decrease) in net assets from
Fund share transactions (Note 5):
Class A (2,981,466) (2,811,350)
Class B 149,985 15
Class C -- 15
Class R -- 15
----------- -----------
Net decrease in net assets (1,770,469) (4,869,969)
NET ASSETS:
Beginning of period 17,684,850 22,554,819
----------- -----------
End of period (including undistributed net
investment income of $2,388 and $2,388,
respectively) $15,914,381 $17,684,850
=========== ===========
</TABLE>
10 See Notes to Financial Statements.
- --------------------------------------------------------------------------------
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
11
- --------------------------------------------------------------------------------
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREMIER LIMITED TERM GOVERNMENT FUND
- --------------------------------------------------------------------------------
FOR CLASS A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR
06/30/95 ENDED ENDED
(UNAUDITED) 12/31/94# 12/31/93
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.89 $ 13.14 $12.76
------- ------- ------
Income from investment operations:
Net investment income +++ 0.38 0.68 0.75
Net realized and unrealized gain/(loss) on
investments 0.77 (1.23) 0.40
------- ------- ------
Total from investment operations 1.15 (0.55) 1.15
------- ------- ------
Less distributions:
Dividends from net investment income (0.38) (0.70) (0.74)
Distributions from net realized capital
gains -- -- (0.03)
Distributions in excess of net realized
gains -- -- (0.00)**
Distributions from capital -- -- --
------- ------- ------
Total Distributions: (0.38) (0.70) (0.77)
------- ------- ------
Net asset value, end of period $ 12.66 $ 11.89 $13.14
======= ======= ======
Total return## 9.79% (4.24)% 9.10%
======= ======= ======
Ratios to average net assets/
supplemental data:
Net assets, end of period (in 000's) $15,761 $ 17,685 $8,776
Ratio of operating expenses to
average net assets 0.85%+ 1.02% 1.40%
Ratio of net investment income to
average net assets++ 6.23%+ 5.59% 5.56%
Portfolio turnover rate 137% 165% 74%
</TABLE>
- --------------------------------------------------------------------------------
* The Fund commenced operations on March 3, 1986. On February 1, 1993
existing shares of the Fund were designated the Retail Class and the Fund
began offering the Institutional Class of shares. Effective April 4, 1994
the Retail and Institutional Classes were reclassified as a single class
of shares known as the Investor Shares and the Fund began offering Trust
Shares. On October 17, 1994 Investor shares were redesignated Class A
shares and Trust Shares were redesignated Class R shares. The amounts
shown for the year ended December 31, 1994 were calculated using the
performance of a Retail Share outstanding from January 1, 1994 to April 3,
1994, and the performance of an Investor (now Class A) Share outstanding
from April 4, 1994 to December 31, 1994. The Financial Highlights for the
year ended December 31, 1993 and prior years are based upon a Retail Share
outstanding.
** Amount represents less than $0.01 per share.
# Prior to April 4, 1994, The Boston Company Advisors, Inc. served as the
Fund's investment adviser. From April 4, 1994 through October 16, 1994,
Mellon Bank, N.A., served as the Fund's investment manager. Effective
October 17, 1994, The Dreyfus Corporation serves as the Fund's
investment manager.
12 See Notes to Financial Statements.
- --------------------------------------------------------------------------------
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 12.81 $ 11.99 $ 11.97 $ 11.66 $ 11.75 $ 12.63 $ 12.50
------- ------- ------- ------- ------- ------- -------
0.72 0.74 0.81 0.90 0.81 0.99 0.88
(0.05) 0.82 0.02 0.33 (0.09) (0.88) 0.13
------- ------- ------- ------- ------- ------- -------
0.67 1.56 0.83 1.23 0.72 0.11 1.01
------- ------- ------- ------- ------- ------- -------
(0.72) (0.74) (0.81) (0.91) (0.81) (0.99) (0.88)
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- (0.01) -- -- --
------- ------- ------- ------- ------- ------- -------
(0.72) (0.74) (0.81) (0.92) (0.81) (0.99) (0.88)
------- ------- ------- ------- ------- ------- -------
$ 12.76 $ 12.81 $ 11.99 $ 11.97 $ 11.66 $ 11.75 $ 12.63
======= ======= ======= ======= ======= ======= =======
5.47% 13.51% 7.29% 10.89% 6.25% 1.01% 8.39%
======= ======= ======= ======= ======= ======= =======
$22,914 $15,797 $15,526 $13,841 $13,759 $13,618 $15,434
1.67% 1.91% 1.92% 1.85% 1.63% 1.04% 0.65%+
5.70% 6.09% 6.87% 7.61% 6.91% 8.20% 8.21%+
30% 50% 300% 321% 65% 122% 85%
</TABLE>
- --------------------------------------------------------------------------------
## Total return represents aggregate total return for the periods
indicated and does not reflect any applicable sales charge.
+ Annualized.
++ Without the voluntary reimbursement and/or waiver of fees by the
investment adviser and transfer agent, the ratio of expenses to average
net assets for the years ended December 31, 1994, 1993 and 1987 would
have been 1.09%, 1.74%, and 1.57%, respectively, and 1.30% for the
period ended December 31, 1986.
+++ Net investment income before voluntary waiver of fees and/or
reimbursement of expenses by the investment adviser for the year ended
December 31, 1994 was $0.67. Net investment income before waiver of fees
and or reimbursement of expenses by the investment adviser, transfer
agent, and distributor, for the years ended December 31, 1993 and 1987,
and for the period ended December 31, 1986 were $0.70, $0.93, and $0.81,
respectively.
See Notes to Financial Statements. 13
- --------------------------------------------------------------------------------
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREMIER LIMITED TERM GOVERNMENT FUND
- --------------------------------------------------------------------------------
FOR A CLASS B SHARE OUTSTANDING THROUGHOUT THE PERIOD.*
<TABLE>
<CAPTION>
PERIOD
ENDED
06/30/95
(UNAUDITED)
- ---------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 11.89
------
Income from investment operations:
Net investment income 0.36
Net realized and unrealized gain on investments 0.76
------
Total from investment operations 1.12
Less distributions:
Dividends from net investment income (0.35)
------
Total Distributions: (0.35)
------
Net asset value, end of period $ 12.66
======
Total return+ 9.52%
======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's) $153
Ratio of operating expenses to average net assets 1.35%++
Ratio of net investment income to average net assets 5.73%++
Portfolio turnover rate 137%
</TABLE>
- --------------------------------------------------------------------------------
* On December 19, 1994, the Fund commenced offering Class B shares.
+ Total return represents aggregate total return for the period indicated
and does not reflect any applicable sales charge.
++ Annualized.
14 See Notes to Financial Statements.
- --------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Funds Trust (the "Trust") (formerly The Boston Company
Fund), The Dreyfus/Laurel Tax-Free Municipal Funds, The Dreyfus/Laurel Funds,
Inc. and The Dreyfus/Laurel Investment Series are all registered open-end
investment companies that are now part of The Dreyfus Family of Funds. The
Trust is an investment company which consists of four funds: Premier Managed
Income Fund, Dreyfus Core Value Fund, Dreyfus Special Growth Fund and Premier
Limited Term Government Securities Fund (the "Fund"). The Trust is a
Massachusetts business trust and is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended (the
"1940 Act"), as a diversified, open-end management investment company. The
Fund currently offers four classes of shares: Class A, Class B, Class C and
Class R shares. Class A, Class B and Class C shares are sold primarily to
retail investors through financial intermediaries and bear a distribution
fee. Class A shares are sold with a front-end sales charge and are subject to
distribution fees, while Class B and Class C shares are subject to a
contingent deferred sales charge and distribution and service fees. Class R
shares are sold primarily to bank trust departments and other financial
service providers (including Mellon Bank N.A. ("Mellon Bank") and its
affiliates) acting on behalf of customers having a qualified trust or
investment account or relationship at such institution, and bear no
distribution fee or sales charge. Each class of shares has identical rights
and privileges except with respect to the distribution and service fees and
voting rights on matters affecting a single class. The following is a summary
of significant accounting policies consistently followed by the Fund in the
preparation of its financial statements.
(A) PORTFOLIO VALUATION
Investments in securities which are traded on a national securities exchange
are valued at the last reported sales price or, in the absence of a recorded
sale, at the mean of the closing bid and asked prices. Over-the-counter
securities are valued at the mean of the closing bid and asked price at the
close of business each day. When market quotations for such securities are
not readily available, securities are valued at fair value, as determined in
good faith by the Board of Trustees. Bonds are valued through valuations
obtained from a commercial pricing service or at the most recent mean of the
bid and asked prices provided by investment dealers in accordance with
procedures established by the Board of Trustees. Debt securities with
maturities of 60 days or less from the valuation day are valued on the basis
of amortized cost which approximates market value.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Interest income is
recorded on the accrual basis. Realized gains and losses on sales of
investments are determined on the basis of identified cost. Investment income
and realized and unrealized gains and losses are allocated based upon the
relative daily net assets of each class of shares.
15
- --------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
(C) EXPENSE ALLOCATION
Expenses of the Fund not directly attributable to the operations of any class
of shares are prorated among the classes based upon the relative average
daily net assets of each class. Distribution expense is directly attributable
to a particular class of shares and is charged only to the class' operations.
(D) DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income, if any, of the Fund are determined
on a class level and are declared each day the Fund is open for business and
are paid on the last business day of the month. The Fund distributes any net
realized capital gains on a Fund level annually. Distributions to
shareholders are recorded on the ex-dividend date. Additional distributions
of net investment income and capital gains for the Fund may be made at the
discretion of the Board of Trustees in order to avoid the 4% nondeductible
Federal excise tax. Income distributions and capital gain distributions on a
Fund level are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments of income and gains on various
investment securities held by the Fund, timing differences and differing
characterization of distributions made by the Fund as a whole.
(E) REPURCHASE AGREEMENTS
The Fund may engage in repurchase agreement transactions. Under the terms of
a typical repurchase agreement, the Fund through its custodian, takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an
agreed-upon price and time, thereby determining the yield during the Fund's
holding period. This arrangement results in a fixed rate of return that is
not subject to market fluctuations during the Fund's holding period. The
value of the collateral is at least equal at all times to the total amount of
the repurchase obligations, including interest. In the event of counterparty
default, the Fund has the right to use the collateral to offset losses
incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Fund's investment manager, acting under the supervision of the
Board of Trustees, reviews the value of the collateral and the
creditworthiness of those banks and dealers with which the Fund enters into
repurchase agreements to evaluate potential risks.
(F) FEDERAL TAXES
It is the Fund's policy to qualify as a regulated investment company, if such
qualification is in the best interest of its shareholders, by complying with
the requirements of the Internal Revenue Code applicable to regulated
investment companies and by distributing all of its taxable income to its
shareholders. Therefore, no Federal income tax provision is required.
16
- --------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
2. INVESTMENT MANAGEMENT FEE, TRUSTEES' FEES AND OTHER PARTY TRANSACTIONS
The Trust entered into an investment management agreement with The Dreyfus
Corporation (the "Manager"), a wholly-owned subsidiary of Mellon Bank, N.A.
("Mellon Bank"). The Manager provides, or arranges for one or more third
parties to provide, investment advisory, administrative, custody, fund
accounting and transfer agency services to the Trust. The Manager also
directs the investments of the Fund in accordance with its investment
objectives, policies and limitations. For these services, the Fund is
contractually obligated to pay the Manager a fee, calculated daily and paid
monthly, at the annual rate of 0.60% of the value of the Fund's average daily
net assets. Out of its fee, the Manager pays all of the expenses of the Fund
except brokerage fees, taxes, interest, Rule 12b-1 distribution fees and
expenses, fees and expenses of non-interested trustees (including counsel
fees) and extraordinary expenses. In addition, the Manager is required to
reduce its fee in an amount equal to the Fund's allocable portion of fees and
expenses of the non-interested trustees (including counsel).
Premier Mutual Fund Services, Inc. ("Premier") serves as the Trust's
distributor. Premier also serves as the Trust's sub-administrator and,
pursuant to a sub-administration agreement with the Manager, provides various
administrative and corporate secretarial services to the Trust.
For the six months ended June 30, 1995, Premier received commissions (sales
charges) of $679 from investors on sales of Class A shares.
A CDSC is generally payable by a shareholder in connection with the
redemption of certain Class A, Class B and Class C shares. In circumstances
in which the CDSC is imposed, the amount of the charge will vary depending on
the number of years since the date of purchase. For the six months ended June
30, 1995, Premier received CDSC from Class B investors of $240.
No officer or employee of Premier (or of any parent, subsidiary or affiliate
thereof) receives any compensation from the Trust, The Dreyfus/Laurel Funds,
Inc., The Dreyfus/Laurel Tax-Free Municipal Funds or The Dreyfus/Laurel
Investment Series (collectively, "The Dreyfus/Laurel Funds") for serving as
an officer or Director or Trustee of The Dreyfus/Laurel Funds. In addition,
no officer or employee of the Manager (or of any parent, subsidiary or
affiliate thereof) serves as an officer or Director or Trustee of The
Dreyfus/Laurel Funds. The Dreyfus/Laurel Funds pay each Director or Trustee
who is not an officer or employee of Premier (or any parent, subsidiary or
affiliate thereof), or of the Manager $27,000 per annum, $1,000 for each
Board meeting attended and $750 for each Audit Committee meeting attended,
and reimburse each Director or Trustee for travel and out-of-pocket expenses.
17
- --------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
3. DISTRIBUTION PLAN
Class A shares are subject to a distribution plan (the "Plan") adopted
pursuant to Rule 12b-1 of the 1940 Act. Under the Plan, the Fund may pay
annually up to 0.25% of the value of the average daily net assets of Class A
shares to compensate Premier and Dreyfus Service Corporation, an affiliate of
the Manager, for shareholder servicing activities and Premier for activities
and expenses primarily intended to result in the sale of Class A shares.
Class B and Class C shares are subject to a distribution plan adopted
pursuant to Rule 12b-1, pursuant to which the Fund pays Premier for
distributing the Fund's Class B and Class C shares at an annual rate of 0.50%
of the value of the average daily net assets of Class B and Class C shares.
Class B and Class C shares are also subject to a service plan adopted
pursuant to Rule 12b-1 pursuant to which the Fund pays Dreyfus Service
Corporation or Premier for the provision of certain services to the holders
of Class B and C shares a fee at the annual rate of 0.25% of the value of the
average daily net assets of Class B and C. Class R shares bear no
distribution fee.
For the six months ended June 30, 1995, the distribution fees for Class A and
Class B were $20,947 and $141, respectively. For the six months ended June
30, 1995, the service fees for Class B were $70.
Under its terms, the Plan shall remain in effect from year to year, provided
such continuance is approved annually by a vote of a majority of the Trustees
and a majority of the Trustees who are not "interested persons" of the Trust
and who have no direct or indirect financial interest in the operation of the
Plan or in any agreement related to the Plan.
4. SECURITIES TRANSACTIONS
Proceeds from sales of securities, excluding short-term investment and U.S.
government securities for the six months ended June 30, 1995 were $30,514.
There were no purchases of securities other than long-term U.S. government
securities for the six months ended June 30, 1995.
Purchases and proceeds from sales of long-term U.S. government securities for
the six months ended June 30, 1995 were $22,183,060 and $25,001,953,
respectively.
At June 30, 1995, aggregate gross unrealized appreciation for all securities
in which there is an excess of value over tax cost and aggregate gross
unrealized depreciation for all securities in which there is an excess of tax
cost over value were $546,041 and $512, respectively.
18
- --------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
5. SHARES OF BENEFICIAL INTEREST
The Trust has the authority to issue an unlimited number of shares of
beneficial interest of each class in each separate series, without par value.
The Trust offers four classes of shares of the Fund.
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
June 30, 1995 December 31, 1994*
SHARES AMOUNT SHARES+ AMOUNT++
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A SHARES:
Sold 95,411 $ 1,154,654 671,131 $ 8,436,807
Issued as reinvestment of
dividends and
distributions 37,687 462,780 83,300 1,029,275
Redeemed (375,695) (4,598,900) (983,069) (12,277,432)
-------- ----------- -------- -----------
Net decrease (242,597) $(2,981,466) (228,638) $ (2,811,350)
======== =========== ======== ===========
</TABLE>
- ------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
June 30, 1995**
SHARES AMOUNT
- ------------------------------------------------------
<S> <C> <C>
CLASS B SHARES:
Sold 12,744 $157,697
Issued as reinvestment of
dividends and distributions 36 451
Redeemed (663) (8,163)
-------- --------
Net decrease 12,117 $149,985
======== ========
</TABLE>
- --------------------------------------------------------------------------------
* Effective April 4, 1994, Retail shares and Institutional shares were
redesignated Investor shares. On October 17, 1994 Investor shares were
redesignated as Class A shares.
** The Fund commenced offering Class B shares on December 19, 1994. As of
December 31, 1994, the Fund had issued 1.256 Class B shares.
+ Number of shares includes 257,667 of subscriptions, 12,997 of
reinvestments and 292,971 of redemptions for the Institutional Class up
to April 4, 1994.
++ Amounts include $3,344,448 of subscriptions, $168,039 of reinvestments
and $3,798,430 of redemptions for the Institutional Class up to April 4,
1994.
As of June 30, 1995, the Fund had issued 1.28 Class C shares and 1.224 Class
R shares in the amount of $16.21 and $15.50, respectively.
6. CAPITAL LOSS CARRYFORWARD
At December 31, 1994, the Fund had available for Federal tax purposes and
unused capital carryforward of $174,952 to offset future net capital gains
expiring in 2002.
19
- --------------------------------------------------------------------------------
<PAGE>
FOR MORE INFORMATION ON YOUR FUND, INCLUDING:
- - General Fund Information.
- - Additional Prospectuses - Read the prospectus carefully before you invest.
- - Account Information.
- - Yield and Share Price Information.
Call 1-800-645-6561
24 hours a day, 7 days a week.
Or write:
The Premier Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
Further information is contained
in the Prospectus, which must
precede or accompany this report.
The Fund is distributed by:
Premier Mutual Fund Services, Inc.
One Exchange Place 10th floor
Boston, MA 02109
<PAGE>
DREYFUS/LAUREL FUNDS TRUST
PREMIER MANAGED INCOME FUND
[GRAPHIC]
Small box above fund name showing a lions face.
<PAGE>
DEAR SHAREHOLDER,
We are pleased to provide you with the Premier Managed Income Fund's
Semi-Annual Report for the six months ended June 30, 1995.
In the pages that follow, we have provided you with a description of the
market environment, a commentary on the Fund's investment strategy and
detailed financial statements for the past six months.
As you know, the Fund has been integrated into The Dreyfus Family of Funds. We
hope that you found the transition from The Laurel Funds to The Dreyfus Family
of Funds to be a smooth one. The extended family of funds now offers you more
investment alternatives in addition to expanded services and privileges to
better serve your investment needs.
We would like to extend our appreciation for your support of The Dreyfus
Family of Funds and hope that the Fund will continue to satisfy your
investment needs. As always, we welcome your thoughts and suggestions.
Sincerely,
Marie E. Connolly
President
The Dreyfus/Laurel Funds Trust
Premier Managed Income Fund
August 18, 1995
1
................................................................................
<PAGE>
TABLE of CONTENTS
................................................................................
<TABLE>
<S> <C>
Shareholder Letter........................................ 1
Economic Review........................................... 3
Portfolio Overview........................................ 5
Portfolio of Investments.................................. 6
Statement of Assets and Liabilities....................... 10
Statement of Operations................................... 11
Statement of Changes in Net Assets........................ 12
Financial Highlights...................................... 13
Notes to Financial Statements............................. 19
</TABLE>
2
................................................................................
<PAGE>
ECONOMIC REVIEW
................................................................................
ECONOMIC SLOWDOWN IS MARKED BUT NOT RECESSIONARY
The economic slowdown long hoped for by many analysts and strongly pursued by
the Federal Reserve Board finally took hold over the past six months. In fact,
the economy slowed more than expected. The so-called leading indicators posted
three consecutive monthly drops, with economic activity contracting in the
spring quarter for the first time in four years. Employment weakness in April
and May signified that the slowdown had begun to erode the economy's
income-generating capacity somewhat, slowing down the advance in spendable
income.
Nonetheless, we are confident that a recession is not underway. First of all,
the economy is not exhibiting the financial stresses and imbalances that often
mark the end of an expansion. For example, business balance sheets are strong,
even at smaller companies. Many firms have also built a cushion into profit
margins by reducing fixed labor costs like health care benefits. Consumer
financial positions are in excellent shape, allowing leeway to survive a
no-growth, low-inflation environment. Rallies in stock and bond markets have
boosted consumer net worth. Meanwhile, borrowing is vigorous and we believe
should remain so, further spurring consumer spending.
A second comforting factor is the unprecedented speed with which businesses
have adjusted their production schedules to the new economic realities. By
limiting the buildup of unwanted inventories, businesses have lowered their
operating rates considerably. Furthermore, business caution is extending into
the third quarter. While this low production may result in sluggish overall
growth during the summer, it should help keep a better balance between supply
and demand.
A BRIGHTER INFLATION OUTLOOK
Economic deceleration is exactly what the Fed wanted to cool rising inflation
expectations, and we believe it's working. The abrupt character of the
slowdown has shocked some businesses who now think they cannot raise prices
and keep their customers. Auto incentives are proliferating, and now steel
makers have begun to cut prices to win market share. Even basic materials
producers are offering price cuts, as last year's speculative inventory
build-ups now seem counterproductive.
In general, lower operating costs are opening a gap between supply and demand
that is alleviating price increase pressure. And while the dollar's decline
could be expected to generate higher import prices that would add to domestic
price pressures, import prices are actually not rising any faster than
domestically-produced finished goods. In other words, a selective and
value-conscious consumer has the upper hand with both domestic and imported
suppliers.
3
................................................................................
<PAGE>
ECONOMIC REVIEW (continued)
................................................................................
BOND MARKET GAINS CONTINUE
With inflation seemingly in check and the economy slowing down nicely, bond
market investors reaped benefits in the form of exceptional returns. In fact,
the second quarter of 1995 posted the market's largest quarterly gain since
1989. The main benchmark index of corporate, government, and mortgage-backed
securities, the Lehman Brothers Government/Corporate Bond Index was up over 6%
for the quarter. Corporate bonds provided the best returns, followed closely
by Treasury securities. Mortgage-backed securities were up but lagged the
other two sectors largely based on speculation that low 30-year mortgage rates
may soon spur another round of homeowner refinancing.
By and large, the economy's unanticipated weakness drove the market's rise.
Fourth quarter 1994 GDP growth was 5%; first quarter GDP growth was just 2.7%.
Lots of data substantiated the deceleration, including slower home sales,
lower durable goods orders, lower industrial production numbers and in
particular, weak employment statistics. Early second quarter statistics
continued to show some economic weakness, although improved spring retail
activity and new home sales were among the signs that a pickup could get
underway soon.
FED BEGINS TO EASE
Against this backdrop, the Fed began to ease monetary policy cautiously in
July by cutting the Federal funds rate 25 basis points. With the inflation
picture improving and economic growth at a standstill, policymakers decided to
take back a small portion of the restraining measures they had engineered
since early 1994. Markets are now wary, because if economic statistics
continue to improve, the Fed may be less likely to institute additional
interest-rate declines. However, we believe the Fed will probably view the
economic outlook as sufficiently uncertain to consider more easing moves.
Inflation pressures are abating and keeping the Fed funds rate steady in this
situation could in fact restrict additional economic growth. For this reason,
we anticipate additional incremental interest-rate declines leading to a Fed
funds rate of near 5% by year end.
4
................................................................................
<PAGE>
PORTFOLIO OVERVIEW
................................................................................
For the six month period ended June 30, 1995, Premier Managed Income Fund
provided a total return of 10.46%* for Class A shares, 10.60% for Class R
shares and 10.06%* for Class B and Class C shares. This compares with a total
return of 10.22% for the Lipper Intermediate Investment Grade Debt Funds.**
Anticipating the bond market's strong rally in the first and second quarters
of 1995, we extended the Fund's duration slightly to capture the market's
appreciation potential. This resulted in good returns for the portfolio with a
longer average duration. We also moved to lessen share price volatility by
scaling back the Fund's corporate bond holdings, particularly in the
high-yield category. High demand for these securities had narrowed their yield
advantage over U.S. Treasury securities to historically low levels, making
them less desirable. We also believed that a slower economy and potentially
lower interest rates ahead would spell less favorable conditions for corporate
bond performance in the months to come.
Other portfolio adjustments over the period included profit-taking on most of
the Fund's convertible bond holdings, and reinvestment of the proceeds into
Treasuries. We also sold most of the Fund's collateralized mortgage
obligations (CM0s), taking advantage of their relative performance to realize
gains for the Fund. Increased bond market volatility and fears that low
30-year mortgage rates might spur homeowners to launch another wave of
refinancing we believe reduces the opportunity for appreciation in the
mortgage sector going forward.
In the months ahead, we intend to stay on our current course while watching
the Federal Reserve Board and the economy carefully for signs that changing
market conditions warrant an adjustment in portfolio strategy.
-----------
* TOTAL RETURN REPRESENTS THE CHANGE DURING THE PERIOD IN A HYPOTHETICAL
ACCOUNT WITH DIVIDENDS REINVESTED, WITHOUT TAKING INTO ACCOUNT THE MAXIMUM
FRONT-END SALES LOAD OF 4.5% IN THE CASE OF CLASS A SHARES AND THE APPLICABLE
CONTINGENT DEFERRED SALES CHARGES ("CDSC") IN THE CASE OF CLASS B AND CLASS C
SHARES. WITH THE SALES CHARGE OR CDSC, THE TOTAL RETURN FOR THE CLASS A,
CLASS B AND CLASS C SHARES FOR THE SAME PERIOD WOULD HAVE BEEN 5.49%, 6.06%
AND 9.06%, RESPECTIVELY.
** THE LIPPER INTERMEDIATE INVESTMENT GRADE DEBT FUNDS AVERAGE IS THE AVERAGE
CUMULATIVE TOTAL REINVESTMENT PERFORMANCE OF FUNDS THAT INVEST AT LEAST 65%
OF ASSETS IN INVESTMENT GRADE DEBT ISSUES (RATED IN TOP 4 GRADES) WITH
DOLLAR-WEIGHTED AVERAGE MATURITIES OF 5 TO 10 YEARS.
5
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (unaudited)
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND JUNE 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
DOMESTIC CORPORATE OBLIGATIONS -- 25.5%
<C> <S> <C> <C> <C>
Industrial -- 5.4%
$ 950,000 ADT Operations Inc., Sr. Note 8.250% 08/01/00 $ 973,750
1,100,000 American Standard Inc. 10.875 05/15/99 1,186,625
1,073,000 Lear Seating Corporation, Sub. Note 8.250 02/01/02 1,012,644
360,000 Nabisco Inc. 6.700 06/15/02 356,400
1,100,000 Penn Traffic, Sr. Note 8.625 12/15/03 1,028,500
440,000 Valassis Inserts Inc., Sr. Sub.
Note 9.375 03/15/99 463,100
-----------
5,021,019
-----------
Banking And Finance -- 4.9%
710,000 First U.S.A. Bank, Medium Term Note 8.100 02/21/97 728,638
600,000 Midland Bank, Sub. Notes 8.625 12/15/04 671,250
570,000 Paine Webber Group Inc. 6.250 06/15/98 558,600
1,375,000 Paine Webber Group Inc. 6.310 07/22/99 1,330,313
225,000 Paine Webber Group Inc. 7.750 09/01/02 227,250
1,000,000 Smith Barney Holdings Inc. 7.875 10/01/99 1,037,500
-----------
4,553,551
-----------
Technology -- 4.1%
1,135,000 Comcast Corporation 9.375 05/15/05 1,146,350
900,000 Jones Intercable Inc. 9.625 03/15/02 940,500
1,040,000 Paging Network Inc., Sr. Sub. Note 8.875 02/01/06 955,500
225,000 Rogers Cablesystems 9.625 08/01/02 226,406
525,000 Rogers Cablesystems++ 10.000 03/15/05 542,063
-----------
3,810,819
-----------
Insurance -- 3.0%
1,200,000 Kemper Corporation Note++ 6.875 09/15/03 1,137,000
770,000 Lincoln National Corporation 7.250 05/15/05 785,400
900,000 Prudential Insurance 7.650 07/01/07 896,625
-----------
2,819,025
-----------
Oil, Gas And Coal -- 2.4%
2,000,000 Consolidation Coal Company++ 8.300 03/06/02 2,237,500
-----------
Healthcare -- 2.2%
1,000,000 American Home Products Corporation 7.900 02/15/05 1,081,250
870,000 National Medical Enterprises 9.625 09/01/02 924,375
-----------
2,005,625
-----------
</TABLE>
6 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (unaudited) (continued)
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND JUNE 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
DOMESTIC CORPORATE OBLIGATIONS -- (continued)
<C> <S> <C> <C> <C>
Media -- 1.4%
$3,000,000 Turner Broadcasting Systems Inc.++ ZERO
COUPON 02/13/07 $ 1,320,000
-----------
Utilities -- 1.1%
500,000 Nynex Capital Funding Company 8.100% 11/01/99 526,875
408,000 Nynex Capital Funding Company 8.750 12/01/04 456,450
-----------
983,325
-----------
Retail -- 1.0%
840,000 Federated Department Stores Inc. 10.000 02/15/01 907,200
-----------
TOTAL DOMESTIC CORPORATE OBLIGATIONS (Cost
$22,869,046) 23,658,064
-----------
FOREIGN CORPORATE OBLIGATIONS -- 7.9%
857,000 Aegeon 8.000 08/15/06 923,066
370,000 Carter Holt Harvey Limited, Sr.
Note 8.875 12/01/04 418,100
490,000 Carter Holt Harvey Limited, Sr.
Note 8.375 04/15/15 533,488
950,000 Cemex S.A. 8.875 06/10/98 821,750
1,150,000 China International Trust &
Investment 9.000 10/15/06 1,236,250
730,000 Domtar Inc., Sr. Note 11.750 03/15/99 806,650
2,600,000 Fideicomiso Petacalco++ 8.125 12/15/03 1,872,000
1,450,000 International Semi-Tech, Sr. Note++ ZERO
COUPON 08/15/03 728,625
-----------
TOTAL FOREIGN CORPORATE OBLIGATIONS (Cost $8,052,515)
7,339,929
-----------
FOREIGN GOVERNMENT AND AGENCY OBLIGATIONS -- 1.8%
(Cost $2,020,000)
2,000,000 Banco Nacional De Orbas 6.875 10/01/98 1,640,000
-----------
MORTGAGE-BACKED SECURITIES -- 24.4%
Federal National Mortgage
Association -- (FNMA) -- 12.7%
20,950 FNMA 92-G20 Guaranteed Remic (I/O) 422.375(1) 04/25/22 188,551
159,380 FNMA 7.500 03/01/08 161,970
227,325 FNMA 7.500 05/01/09 231,126
1,972,141 FNMA 7.500 06/01/09 2,005,272
1,265,965 FNMA 7.500 07/01/09 1,287,226
36,170 FNMA 7.500 09/01/09 36,777
1,229,222 FNMA 7.500 10/01/09 1,249,873
60,020 FNMA 7.500 11/01/09 61,030
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 7
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (unaudited) (continued)
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND JUNE 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
MORTGAGE-BACKED SECURITIES -- (continued)
<C> <S> <C> <C> <C>
Federal National Mortgage
Association -- (FNMA) (continued)
$ 69,062 FNMA 7.500% 01/01/10 $ 70,220
518,782 FNMA 7.500 03/01/10 527,527
572,453 FNMA 7.500 05/01/10 582,105
5,337,359 FNMA 7.500 04/01/25 5,362,338
46,165 FNMA 14.750 08/01/12 51,043
-----------
11,815,058
-----------
Government National Mortgage
Association -- (GNMA) -- 11.6%
4,835,842 GNMA 7.000 09/15/24 4,785,066
3,690,821 GNMA 8.500 12/15/24 3,850,818
2,027,901 GNMA 8.000 01/15/25 2,086,731
-----------
10,722,615
-----------
Federal Home Loan Mortgage
Corporation -- (FHLMC) -- 0.1%
95,014 FHLMC Group #E5-8384 6.500 04/01/09 93,760
-----------
TOTAL MORTGAGE-BACKED SECURITIES (Cost $21,738,639)
22,631,433
-----------
ASSET-BACKED SECURITIES -- 2.0% (Cost $1,916,706)
860,000 MBNA Master Credit Card 6.450 02/15/08 844,413
1,060,078 Equa Credit Corporation
Home Equity Loan 5.150 09/15/08 999,653
-----------
1,844,066
-----------
U.S. TREASURY OBLIGATIONS -- 38.2%
U.S. Treasury Bonds -- 2.5%
2,258,000 U.S. Treasury Bonds 7.125 02/15/23 2,380,722
-----------
</TABLE>
8 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (unaudited) (continued)
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND JUNE 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
U.S. TREASURY OBLIGATIONS -- (continued)
<C> <S> <C> <C> <C>
U.S. Treasury Notes -- 35.7%
$4,282,000 U.S. Treasury Notes 7.375% 05/15/96 $ 4,339,208
3,000,000 U.S. Treasury Notes 7.875 01/15/98 3,139,590
11,760,000 U.S. Treasury Notes 7.125 02/29/00 12,288,965
2,000,000 U.S. Treasury Notes 7.500 01/31/96 2,020,380
5,052,000 U.S. Treasury Notes 7.250 08/15/04 5,402,154
1,047,000 U.S. Treasury Notes 7.500 02/15/05 1,141,199
4,722,000 U.S. Treasury Notes 6.500 05/15/05 4,824,845
-----------
33,156,341
-----------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $35,142,865) 35,537,063
-----------
TOTAL INVESTMENTS (Cost $91,739,771*) 99.8% 92,650,555
NET OTHER ASSETS AND LIABILITIES 0.2 168,088
------ -----------
NET ASSETS 100.0% $92,818,643
------
------
-----------
-----------
-------------------------------------------------------------------------------
* AGGREGATE COST FOR FEDERAL TAX PURPOSES.
++ SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933. THE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS.
I/O INTEREST ONLY SECURITY.
(1) CURRENT YIELD: 20.000%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 9
................................................................................
<PAGE>
STATEMENT of ASSETS and LIABILITIES
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
ASSETS
<S> <C> <C>
Investments, at value (Cost $91,739,771)
(Note 1)
See accompanying schedule $ 92,650,555
Cash 130,077
Receivable for investment securities sold 14,366,356
Interest receivable 1,545,591
Receivable for Fund shares sold 48,289
-------------
Total Assets 108,740,868
-------------
-------------
LIABILITIES
Payable for investment securities purchased $ 15,642,422
Investment management fee payable (Note 2) 155,978
Dividends payable 103,469
Distribution fee payable (Note 3) 17,196
Accrued Trustees' fees and expenses (Note 2) 3,097
Service fee payable (Note 3) 63
------------
Total Liabilities 15,922,225
-------------
NET ASSETS $ 92,818,643
-------------
-------------
NET ASSETS consist of:
Distributions in excess of net investment
income earned to date $ (40,538)
Accumulated net investment loss on
investments sold (7,634,205)
Unrealized appreciation of investments 910,784
Paid-in capital 99,582,602
-------------
Total Net Assets $ 92,818,643
-------------
-------------
NET ASSET VALUE
CLASS A SHARES
Net asset value and redemption price per
share
($81,509,011 DIVIDED BY 7,554,603 shares
of beneficial interest outstanding) $10.79
------
------
Maximum offering price per share ($10.79
DIVIDED BY .955) (based on sales charge
of 4.5% of the offering price at June 30,
1995) $11.30
------
------
CLASS B SHARES
Net asset value and offering price per share+
($536,530 DIVIDED BY 49,727 shares of
beneficial interest outstanding) $10.79
------
------
CLASS C SHARES
Net asset value and offering price per share+
($22,416 DIVIDED BY 2,077 shares of
beneficial interest outstanding) $10.79
------
------
CLASS R SHARES
Net asset value, offering and redemption price per share
($10,750,686 DIVIDED BY 996,418 shares of beneficial
interest outstanding) $10.79
------
------
- --------------------------------------------------------------------------
+ REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
</TABLE>
10 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
STATEMENT of OPERATIONS
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND
FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest $3,596,655
Dividends 57,500
----------
Total Investment Income 3,654,155
EXPENSES
Investment management fee (Note 2) $310,144
Distribution fee (Note 3) 100,447
Trustees' fees and expenses (Note 2) 4,494
Service fee (Note 3) 378
--------
Total Expenses 415,463
----------
NET INVESTMENT INCOME 3,238,692
----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS
(Notes 1 and 4):
Net realized loss on securities
transactions (819,341)
Net change in unrealized
appreciation of securities 6,609,525
----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 5,790,184
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $9,028,876
----------
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 11
................................................................................
<PAGE>
STATEMENT of CHANGES in NET ASSETS
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
6/30/95 ENDED
(unaudited) 12/31/94
<S> <C> <C>
Net investment income $ 3,238,692 $ 6,214,116
Net realized loss on investments sold and foreign currency transactions
during the period (819,341) (3,956,546)
Net unrealized appreciation/(depreciation) on investments and foreign
currency holdings during the period 6,609,525 (7,391,645)
------------- ------------
Net increase/(decrease) in net assets resulting from operations 9,028,876 (5,134,075)
Distributions to shareholders from net investment income:
Class A (2,858,771) (5,050,079)
Institutional Class -- (444,891)
Class B (9,051) --
Class R (377,134) (817,994)
Net increase/(decrease) in net assets from Fund share transactions (Note
5):
Class A (3,138,490) 3,098,460
Class B 512,988 15
Class C 22,483 15
Class R 502,330 (315,127)
------------- ------------
Net increase/(decrease) in net assets 3,683,231 (8,663,676)
NET ASSETS:
Beginning of period 89,135,412 97,799,088
------------- ------------
End of period (including distributions in excess of net investment income
of $40,538 and $34,274, respectively) $ 92,818,643 $ 89,135,412
------------- ------------
------------- ------------
</TABLE>
12 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND
FOR CLASS A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR
6/30/95 ENDED ENDED
(unaudited) 12/31/94** 12/31/93##
<S> <C> <C> <C>
------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.12 $ 11.38 $ 11.45
------------- ------------ ------------
Income from investment operations:
Net investment income# 0.37 0.69 0.78
Net realized and unrealized gain/(loss) on
investments 0.67 (1.26) 0.83
------------- ------------ ------------
Total from investment operations 1.04 (0.57) 1.61
Less distributions:
Distributions from net investment income (0.37) (0.69) (0.75)
Distributions in excess of net investment income -- -- --
Distributions from net realized capital gains -- -- (0.57)
Distributions in excess of net realized gains -- -- (0.36)
------------- ------------ ------------
Total Distributions: (0.37) (0.69) (1.68)
------------- ------------ ------------
Net asset value, end of period $ 10.79 $ 10.12 $ 11.38
------------- ------------ ------------
Total return+ 10.46% (5.14)% 14.54%
------------- ------------ ------------
------------- ------------ ------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 81,509 $ 79,548 $ 58,052
Ratio of operating expenses to average net
assets+++ 0.95%++ 0.98% 1.14%
Ratio of net investment income to average net
assets 7.18%++ 6.32% 6.55%
Portfolio turnover rate++++ 145% 270% 333%
------------------------------------------------------------------------------------
* ON FEBRUARY 1, 1993 EXISTING SHARES OF THE FUND WERE DESIGNATED THE RETAIL CLASS AND THE
FUND BEGAN OFFERING THE INSTITUTIONAL CLASS AND THE INVESTMENT CLASS OF SHARES. EFFECTIVE
APRIL 4, 1994 THE RETAIL AND INSTITUTIONAL CLASSES WERE RECLASSIFIED AS A SINGLE CLASS OF
SHARES KNOWN AS INVESTOR SHARES. ON OCTOBER 17, 1994 INVESTOR SHARES WERE REDESIGNATED
CLASS A SHARES. THE AMOUNTS SHOWN FOR THE YEAR ENDED DECEMBER 31, 1994 WERE CALCULATED
USING THE PERFORMANCE OF A RETAIL CLASS SHARE OUTSTANDING FROM JANUARY 1, 1994 TO APRIL 3,
1994 AND THE PERFORMANCE OF AN INVESTOR (NOW CLASS A) SHARE OUTSTANDING FROM APRIL 4, 1994
TO DECEMBER 31, 1994. THE FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 1993 AND
PRIOR YEARS ARE BASED UPON A RETAIL CLASS SHARE OUTSTANDING.
** PRIOR TO APRIL 4, 1994, THE BOSTON COMPANY ADVISORS, INC. SERVED AS THE FUND'S INVESTMENT
ADVISER. FROM APRIL 4, 1994 THROUGH OCTOBER 16, 1994, MELLON BANK, N.A. SERVED AS THE
FUND'S INVESTMENT MANAGER. EFFECTIVE OCTOBER 17, 1994, THE DREYFUS CORPORATION SERVES AS
THE FUND'S INVESTMENT MANAGER.
# NET INVESTMENT INCOME BEFORE VOLUNTARY WAIVER OF FEES OR REIMBURSEMENT OF EXPENSES BY THE
INVESTMENT ADVISER FOR THE YEAR ENDED DECEMBER 31, 1994 WAS $0.69. NET INVESTMENT INCOME
BEFORE WAIVER OF FEES AND/OR REIMBURSEMENT OF EXPENSES BY THE INVESTMENT ADVISER, TRANSFER
AGENT, AND DISTRIBUTOR, FOR THE YEAR ENDED DECEMBER 31, 1993 WAS $0.77.
## PER SHARE AMOUNTS HAVE BEEN CALCULATED USING THE MONTHLY AVERAGE SHARE METHOD, WHICH MORE
APPROPRIATELY PRESENTS THE PER SHARE DATA FOR THIS YEAR SINCE THE USE OF THE UNDISTRIBUTED
NET INVESTMENT INCOME METHOD DID NOT ACCORD WITH RESULTS OF OPERATIONS.
+ ANNUALIZED.
++ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE PERIOD INDICATED AND DOES NOT
REFLECT ANY APPLICABLE SALES CHARGE.
+++ WITHOUT THE VOLUNTARY REIMBURSEMENT OF EXPENSES AND/OR WAIVER OF FEES BY THE INVESTMENT
ADVISER AND/OR TRANSFER AGENT, AND/OR DISTRIBUTOR, THE RATIO OF EXPENSES TO AVERAGE NET
ASSETS FOR THE YEARS ENDED DECEMBER 31, 1994 AND 1993 WOULD HAVE BEEN 0.99%, AND 1.27%,
RESPECTIVELY.
++++ IN ACCORDANCE WITH THE SECURITIES AND EXCHANGE COMMISSION'S JULY 1985 RULES AMENDMENT, THE
RATES FOR 1986 AND LATER PERIODS INCLUDE U.S. GOVERNMENT LONG-TERM SECURITIES WHICH WERE
EXCLUDED FROM THE CALCULATIONS IN PRIOR YEARS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 13
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND
FOR CLASS A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
12/31/92 12/31/91
---------- ----------
<S> <C> <C>
- ------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.41 $ 10.55
---------- ----------
Income from investment operations:
Net investment income# 0.87 0.86
Net realized and unrealized gain/(loss) on investments 0.10 0.86
---------- ----------
Total from investment operations 0.97 1.72
Less distributions:
Distributions from net investment income (0.87 ) (0.86 )
Distributions in excess of net investment income (0.06 ) --
Distributions from net realized capital gains -- --
Distributions in excess of net realized gains -- --
---------- ----------
Total Distributions: (0.93 ) (0.86 )
---------- ----------
Net asset value, end of period $ 11.45 $ 11.41
---------- ----------
Total return+ 8.77% 17.03%
---------- ----------
---------- ----------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 98,207 $ 84,203
Ratio of operating expenses to average net assets+++ 1.02% 1.13%
Ratio of net investment income to average net assets 7.58% 7.91%
Portfolio turnover rate++++ 216% 119%
- ------------------------------------------------------------------------------------
</TABLE>
# NET INVESTMENT INCOME BEFORE VOLUNTARY WAIVER OF FEES OR REIMBURSEMENT OF
EXPENSES BY THE INVESTMENT ADVISER FOR THE YEAR ENDED DECEMBER 31, 1994 WAS
$0.69. NET INVESTMENT INCOME BEFORE WAIVER OF FEES AND/OR REIMBURSEMENT OF
EXPENSES BY THE INVESTMENT ADVISER, TRANSFER AGENT, AND DISTRIBUTOR, FOR THE
YEAR ENDED DECEMBER 31, 1993 WAS $0.77.
+ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE PERIODS INDICATED AND
DOES NOT REFLECT ANY APPLICABLE SALES CHARGE.
+++ WITHOUT THE VOLUNTARY REIMBURSEMENT OF EXPENSES AND/OR WAIVER OF FEES BY
THE INVESTMENT ADVISER AND/OR TRANSFER AGENT, AND/OR DISTRIBUTOR, THE RATIO
OF EXPENSES TO AVERAGE NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 1994 AND
1993 WOULD HAVE BEEN 0.99%, AND 1.27%, RESPECTIVELY.
++++ IN ACCORDANCE WITH THE SECURITIES AND EXCHANGE COMMISSION'S JULY 1985 RULES
AMENDMENT, THE RATES FOR 1986 AND LATER PERIODS INCLUDE U.S. GOVERNMENT
LONG-TERM SECURITIES WHICH WERE EXCLUDED FROM THE CALCULATIONS IN PRIOR
YEARS.
14 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
................................................................................
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
12/31/90 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
-------- -------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $11.12 $11.43 $ 11.29 $11.91 $11.80 $10.60
-------- -------- ---------- -------- -------- --------
Income from investment operations:
Net investment income# 0.93 0.98 1.01 1.20 0.86 1.20
Net realized and unrealized gain/(loss) on investments (0.47 ) (0.36 ) 0.09 (0.52 ) 0.28 0.99
-------- -------- ---------- -------- -------- --------
Total from investment operations 0.46 0.62 1.10 0.68 1.14 2.19
Less distributions:
Distributions from net investment income (1.03 ) (0.93 ) (0.96 ) (1.20 ) (0.96 ) (0.99 )
Distributions in excess of net investment income -- -- -- -- -- --
Distributions from net realized capital gains -- -- -- (0.10 ) (0.07 ) --
Distributions in excess of net realized gains -- -- -- -- -- --
-------- -------- ---------- -------- -------- --------
Total Distributions: (1.03 ) (0.93 ) (0.96 ) (1.30 ) (1.03 ) (0.99 )
-------- -------- ---------- -------- -------- --------
Net asset value, end of period $10.55 $11.12 $ 11.43 $11.29 $11.91 $11.80
-------- -------- ---------- -------- -------- --------
Total return+ 4.40% 5.56% 10.05% 5.96% 10.09% 21.83%
-------- -------- ---------- -------- -------- --------
-------- -------- ---------- -------- -------- --------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $71,132 $83,912 $ 65,105 $51,765 $49,272 $16,721
Ratio of operating expenses to average net assets+++ 1.19% 1.15% 1.14% 0.94% 0.88% 1.48%
Ratio of net investment income to average net assets 8.65% 8.76% 8.81% 10.30% 10.01% 10.77%
Portfolio turnover rate++++ 183% 142% 139% 306% 71% 173%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 15
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND
FOR CLASS B SHARE OUTSTANDING THROUGHOUT THE PERIOD.*
<TABLE>
<CAPTION>
PERIOD
ENDED
6/30/95
(unaudited)
<S> <C>
----------------------------------------------------------------
Net asset value, beginning of period $ 10.12
------------
Income from investment operations:
Net investment income 0.35
Net realized and unrealized gain on investments 0.65
------------
Total from investment operations 1.03
Less distributions:
Dividends from net investment income (0.33)
------------
Total Distributions: (0.33)
------------
Net asset value, end of period $ 10.79
------------
Total return+ 10.06%
------------
------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 537
Ratio of operating expenses to average net assets 1.70%**
Ratio of net investment income to average net
assets 6.43%**
Portfolio turnover rate 145%
----------------------------------------------------------------
* THE FUND COMMENCED OFFERING CLASS B SHARES ON DECEMBER 19,
1994.
** ANNUALIZED.
++ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE
PERIOD INDICATED AND DOES NOT REFLECT ANY APPLICABLE SALES
CHARGE.
</TABLE>
16 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND
FOR CLASS C SHARE OUTSTANDING THROUGHOUT THE PERIOD.*
<TABLE>
<CAPTION>
PERIOD
ENDED
6/30/95
(unaudited)
<S> <C>
----------------------------------------------------------------
Net asset value, beginning of period $ 10.12
------------
Income from investment operations:
Net investment income 0.34
Net realized and unrealized loss on investments (0.66)
------------
Total from investment operations 1.00
Less distributions:
Dividends from net investment income (0.33)
------------
Total Distributions: (0.33)
------------
Net asset value, end of period $ 10.79
------------
Total return+ 10.06%
------------
------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 22
Ratio of operating expenses to average net assets 1.70%**
Ratio of net investment income to average net
assets 5.89%**
Portfolio turnover rate 145%
----------------------------------------------------------------
* THE FUND COMMENCED OFFERING CLASS C SHARES ON DECEMBER 19,
1994.
** ANNUALIZED.
++ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE
PERIOD INDICATED AND DOES NOT REFLECT ANY APPLICABLE SALES
CHARGE.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 17
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
- --------------------------------------------------------------------------------
PREMIER MANAGED INCOME FUND
FOR CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR PERIOD
6/30/95 ENDED ENDED
(unaudited) 12/31/94** 12/31/93##
<S> <C> <C> <C>
------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.12 $ 11.38 $ 11.62
------------- ------------- -------------
Income from investment operations:
Net investment income# 0.38 0.72 0.74
Net realized and unrealized gain/(loss) on
investments 0.67 (1.26) 0.67
------------- ------------- -------------
Total from investment operations 1.05 (0.54) 1.41
Less distributions:
Dividends from net investment income (0.38) (0.72) (0.71)
Distributions from net realized capital gains -- -- (0.61)
Distributions in excess of net realized gains -- -- (0.33)
------------- ------------- -------------
Total Distributions: (0.38) (0.72) (1.65)
------------- ------------- -------------
Net asset value, end of period $ 10.79 $ 10.12 $ 11.38
------------- ------------- -------------
Total return+ 10.60% (4.88)% 12.59%
------------- ------------- -------------
------------- ------------- -------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 10,751 $ 9,588 $ 11,338
Ratio of operating expenses to average net
assets++ 0.70%*** 0.71% 0.83%++
Ratio of net investment income to average net
assets 7.43%*** 6.59% 6.86%++
Portfolio turnover rate 145% 270% 333%
------------------------------------------------------------------------------------
* ON FEBRUARY 1, 1993, THE FUND COMMENCED SELLING INVESTMENT CLASS SHARES. EFFECTIVE APRIL 4,
1994 THE INVESTMENT CLASS WAS REDESIGNATED AS THE TRUST SHARES. ON OCTOBER 17, 1994 THE TRUST
SHARES WERE REDESIGNATED CLASS R SHARES.
** PRIOR TO APRIL 4, 1994, THE BOSTON COMPANY ADVISORS, INC. SERVED AS THE FUND'S INVESTMENT
ADVISER. FROM APRIL 4, 1994 THROUGH OCTOBER 16, 1994, MELLON BONK, N.A. SERVED AS THE FUND'S
INVESTMENT MANAGER. EFFECTIVE OCTOBER 17, 1994, THE DREYFUS CORPORATION SERVES AS THE FUND'S
INVESTMENT MANAGER.
*** ANNUALIZED.
+ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE PERIOD INDICATED.
++ WITHOUT THE VOLUNTARY REIMBURSEMENT OF EXPENSES AND/OR WAIVER OF FEES BY THE INVESTMENT
ADVISER AND TRANSFER AGENT, THE RATIO OF EXPENSES TO AVERAGE NET ASSETS FOR THE YEARS ENDED
DECEMBER 31, 1994 AND 1993 WOULD HAVE BEEN 0.72%, AND 0.87%, RESPECTIVELY.
# NET INVESTMENT INCOME BEFORE VOLUNTARY WAIVER OF FEES OR REIMBURSEMENT OF EXPENSES BY THE
INVESTMENT ADVISER FOR THE YEAR ENDED DECEMBER 31, 1994 WAS $0.71. NET INVESTMENT INCOME
BEFORE WAIVER OF FEES AND/OR REIMBURSEMENT OF EXPENSES BY THE INVESTMENT ADVISER, TRANSFER
AGENT, AND DISTRIBUTOR, FOR THE PERIOD ENDED DECEMBER 31, 1993 WAS $0.74.
## PER SHARE AMOUNTS HAVE BEEN CALCULATED USING THE MONTHLY AVERAGE SHARE METHOD, WHICH MORE
APPROPRIATELY PRESENTS THE PER SHARE DATA FOR THIS PERIOD SINCE THE USE OF THE UNDISTRIBUTED
NET INVESTMENT INCOME METHOD DID NOT ACCORD WITH RESULTS OF OPERATIONS.
</TABLE>
18 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited)
................................................................................
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Funds Trust (the "Trust") (formerly The Boston Company
Fund), The Dreyfus/Laurel Tax-Free Municipal Funds, The Dreyfus/Laurel Funds,
Inc. and The Dreyfus/Laurel Investment Series are all registered open-end
investment companies that are now part of The Dreyfus Family of Funds. The
Trust is an investment company which consists of four funds: Premier Limited
Term Government Securities Fund, Dreyfus Core Value Fund, Dreyfus Special
Growth Fund and Premier Managed Income Fund (the "Fund"). The Trust is a
Massachusetts business trust and is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended (the
"1940 Act"), as a diversified, open-end management investment company. The
Fund currently offers four classes of shares: Class A, Class B, Class C and
Class R shares. Class A, Class B and Class C shares are sold primarily to the
retail investors through financial intermediaries. Class A shares are sold
with a front-end sales charge and are subject to a distribution fee, while
Class B and Class C shares are subject to a contingent deferred sales charge
("CDSC") and distribution and service fees. Class R shares are sold primarily
to bank trust departments and other financial service providers (including
Mellon Bank N.A. ("Mellon Bank") and its affiliates) acting on behalf of
customers having a qualified trust or investment account or relationship at
such institution and bear no distribution fee or sales charge. Each class of
shares has identical rights and privileges except with respect to the
distribution fees and voting rights on matters affecting a single class. The
following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
(A) PORTFOLIO VALUATION
Investments in securities traded on a national securities exchange are valued
at the last reported sales price or, in the absence of a recorded sale, at the
mean of the closing bid and asked prices. Over-the-counter securities are
valued at the mean of the latest bid and asked prices. If market quotations
for securities are not readily available, they will be valued at fair value,
as determined in good faith by the Board of Trustees. Options are generally
valued at the last sale price or, in the absence of a last sale price, the
last bid price. Bonds are valued through valuations obtained from a commercial
pricing service or at the most recent mean of the bid and asked prices
provided by investment dealers in accordance with procedures established by
the Board of Trustees. Debt securities with maturities of 60 days or less from
the valuation day are valued on the basis of amortized cost which approximates
market value. Foreign securities are generally valued at the preceding closing
values of such securities on their respective exchanges, except that when an
occurrence subsequent to the time a value was so established is likely to have
changed such value, then the fair value of those securities will be determined
by consideration of other factors by or under the direction of the Board of
Trustees or its delegates.
19
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited) (continued)
................................................................................
(B) REPURCHASE AGREEMENTS
The Fund may engage in repurchase agreement transactions. Under the terms of a
typical repurchase agreement, the Fund, through its custodian, takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding
period. This arrangement results in a fixed rate of return that is not subject
to market fluctuations during the Fund's holding period. The value of the
collateral is at least equal at all times to the total amount of the
repurchase obligations, including interest. In the event of counterparty
default, the Fund has the right to use the collateral to offset losses
incurred. There is potential loss to the Fund in the event the Fund is delayed
or prevented from exercising its rights to dispose of the collateral
securities including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Fund's investment manager, acting under the supervision of the
Board of Trustees, reviews the value of the collateral and the
creditworthiness of those banks and dealers with which the Fund enters into
repurchase agreements to evaluate potential risks.
(C) FOREIGN CURRENCY
The books and records of the Fund are maintained in United States (U.S.)
dollars. Foreign currencies, investments and other assets and liabilities are
translated into U.S. dollars at the exchange rates prevailing at the end of
the period, and purchases and sales of investment securities, income and
expenses are translated on the respective dates of such transactions.
Unrealized gains and losses which result from changes in foreign currency
exchange rates have been included in the unrealized
appreciation/(depreciation) of investments and net other assets. Net realized
foreign currency gains and losses resulting from changes in exchange rates
include foreign currency gains and losses between trade date and settlement
date on investment securities transactions, foreign currency transactions and
the difference between the amounts of interest and dividends recorded on the
books of the Fund and the amount actually received. The portion of foreign
currency gains and losses related to fluctuation in exchange rates between the
initial purchase trade date and subsequent sale trade date in included in
realized gains and losses on investment securities sold.
(D) EXPENSE ALLOCATION
Expenses of the Fund not directly attributable to the operations of any class
of shares are prorated among the classes based upon the relative average daily
net assets of each class. Distribution expense is directly attributable to a
particular class of shares and is charged only to that class' operations.
(E) SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Dividend income is
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis. Realized gains and
20
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited) (continued)
................................................................................
losses on sales of investments are determined on the identified cost basis.
Investment income and realized and unrealized gains and losses are allocated
based upon relative daily net assets of each class of shares.
(F) DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income, if any, of the Fund are determined
on a class level, and are declared each day the Fund is open for business and
paid on the first business day of the following month. The Fund distributes
any net realized capital gains on a Fund level annually. Distributions to
shareholders are recorded on the ex-dividend date. Additional distributions of
net investment income and capital gains for the Fund may be made at the
discretion of the Board of Trustees in order to avoid the 4.00% nondeductible
Federal excise tax. Income distributions and capital gain distributions on a
Fund level are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments of income and gains on various
investment securities held by the Fund, timing differences and differing
characterization of distributions made by the Fund as a whole.
(G) FEDERAL TAXES
It is the Fund's policy to qualify as a regulated investment company, if such
qualification is in the best interest of its shareholders, by complying with
the requirements of the Internal Revenue Code applicable to regulated
investment companies and by distributing all of its taxable income to its
shareholders. Therefore, no Federal income tax provision is required.
2. INVESTMENT MANAGEMENT FEE, TRUSTEE'S FEES
AND OTHER PARTY TRANSACTIONS
The Trust has an investment management agreement with The Dreyfus Corporation
(the "Manager"), a wholly-owned subsidiary of Mellon Bank. The Manager
provides, or arranges for one or more third parties to provide, investment
advisory, administrative, custody, fund accounting and transfer agency
services to the Trust. The Manager also directs the investments of the Fund in
accordance with its investment objectives, policies and limitations. For these
services, the Fund is contractually obligated to pay the Manager a fee,
calculated daily and paid monthly, at the annual rate of 0.70% of the value of
the Fund's average daily net assets. Out of its fee, the Manager pays all of
the expenses of the Fund except brokerage fees, taxes, interest, Rule 12b-1
distribution fees and expenses, fees and expenses of non-interested trustees
(including counsel fees) and extraordinary expenses. In addition, the Manager
is required to reduce its fee in an amount equal to the Fund's allocable
portion of fees and expenses of the non-interested trustees (including
counsel).
21
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited) (continued)
................................................................................
Premier Mutual Fund Services, Inc. ("Premier") serves as the Trust's
distributor. Premier also serves as the Trust's sub-administrator and,
pursuant to a sub-administration agreement with the Manager, provides various
administrative and corporate secretarial services to the Trust.
For the six months ended June 30, 1995, Premier received commissions (sales
charges) of $23,193 from investors on sales of Class A shares.
A CDSC is generally payable by a shareholder in connection with the redemption
of certain Class A, Class B and Class C shares. In circumstances in which the
CDSC is imposed, the amount of the charge will vary depending on the number of
years since the date of purchase.
No officer or employee of Premier (or of any parent, subsidiary or affiliate
thereof) receives any compensation from The Dreyfus/Laurel Funds, Inc., the
Trust, The Dreyfus/ Laurel Tax-Free Municipal Funds or The Dreyfus/Laurel
Investment Series (collectively, "The Dreyfus/Laurel Funds") for serving as an
officer or Director or Trustee of The Dreyfus/Laurel Funds. In addition, no
officer or employee of the Manager (or of any parent, subsidiary or affiliate
thereof) serves as an officer, Director or Trustee of The Dreyfus/Laurel
Funds. The Dreyfus/Laurel Funds pay each Director or Trustee who is not an
officer or employee of Premier (or any parent, subsidiary or affiliate
thereof), $27,000 per annum, $1,000 for each Board meeting attended and $750
for each Audit Committee meeting attended, and reimburse each Director or
Trustee for travel and out-of-pocket expenses.
3. DISTRIBUTION PLAN
Class A shares are subject to a distribution plan (the "Plan") adopted
pursuant to Rule 12b-1 of the 1940 Act. Under the Plan, the Fund may pay
annually up to 0.25% of the value of its average daily net assets attributable
to Class A shares to compensate Premier and Dreyfus Service Corporation, an
affiliate of the Manager, for shareholder servicing activities and Premier for
activities and expenses primarily intended to result in the sale of Class A
shares. Class B and Class C shares are subject to a distribution plan adopted
pursuant to Rule 12b-1, pursuant to which the Fund pays Premier for
distributing the Fund's Class B and C shares at an aggregate annual rate of
0.75% of the value of the average daily net assets of Class B and C shares,
respectively. Class B and Class C shares are also subject to a service plan
adopted pursuant to Rule 12b-1 pursuant to which the Fund pays Dreyfus Service
Corporation or Premier for the provision of certain services to the holders of
Class B and Class C shares a fee at the annual rate 0.25% of the value of the
average daily net assets of Class B and C shares. For the six months ended
June 30, 1995, the distribution fees for Class A, Class B and Class C were
$99,310, $1,135 and $2, respectively. For the six months ended June 30, 1995,
the service fees for Class B and Class C shares were $378 and less than $1,
respectively. The Class R shares bear no service or distribution fee.
22
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited) (continued)
................................................................................
Under its terms, the Plan shall remain in effect from year to year, provided
such continuance is approved annually by a vote of a majority of the Trustees
and a majority of the Trustees who are not "interested persons" of the Trust
and who have no direct or indirect financial interest in the operation of the
Plan or in any agreement related to the Plan.
4. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities, excluding short-term
investments and U.S. government securities for the six months ended June 30,
1995, were $19,888,824 and $34,021,968, respectively.
Cost of purchases and proceeds from sales of long-term U.S. government
securities for the six months ended June 30, 1995 were $116,411,799 and
$91,758,639, respectively.
At June 30, 1995, aggregate gross unrealized appreciation for all securities
in which there is an excess of value over tax cost and aggregate gross
unrealized depreciation for all securities in which there is an excess of tax
cost over value were $2,851,938 and $1,941,154, respectively.
5. SHARES OF BENEFICIAL INTEREST
The Trust has the authority to issue an unlimited number of shares of
beneficial interest of each class in each separate series, without par value.
The Fund has authority to issue four classes of shares (Class A, Class B,
Class C and Class R). The table below summarizes the transactions in the Fund
shares for the periods indicated.
<TABLE>
<CAPTION>
Six Months Ended Year Ended
JUNE 30, 1995 DECEMBER 31, 1994*
Shares Amount Shares+ Amount++
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------
CLASS A SHARES:
Sold 600,801 $ 6,178,819 4,868,476 $ 51,614,329
Issued as reinvestment of
dividends and distributions 217,638 2,272,463 421,059 4,468,073
Redeemed (1,121,370) (11,589,772) (5,028,074) (52,983,942)
---------- ------------- ---------- ------------
Net increase/(decrease) (302,931) $ (3,138,490) 261,461 $ 3,098,460
---------- ------------- ---------- ------------
---------- ------------- ---------- ------------
-----------------------------------------------------------------------------------
</TABLE>
23
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited) (continued)
................................................................................
<TABLE>
<CAPTION>
Period Ended
JUNE 30, 1995**
Shares Amount
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS B SHARES:
Sold 49,146 $ 506,859
Issued as reinvestment of
dividends and distributions 584 6,171
Redeemed (4) (42)
---------- -------------
Net increase 49,726 $ 512,988
---------- -------------
---------- -------------
-----------------------------------------------------------------------------------
<CAPTION>
Period Ended
JUNE 30, 1995**
Shares Amount
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------
CLASS C SHARES:
Sold 2,076 $ 22,483
---------- -------------
Net increase 2,076 $ 22,483
---------- -------------
---------- -------------
-----------------------------------------------------------------------------------
<CAPTION>
Six Months Ended Year Ended
JUNE 30, 1995 DECEMBER 31, 1994*
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------
CLASS R SHARES:
Sold 291,406 $ 3,016,062 538,268 $ 5,912,410
Issued as reinvestment of
dividends and distributions 27,022 283,026 46,123 489,170
Redeemed (269,079) (2,796,758) (633,398) (6,716,707)
---------- ------------- ---------- ------------
Net increase/(decrease) 49,349 $ 502,330 (49,007) $ (315,127)
---------- ------------- ---------- ------------
---------- ------------- ---------- ------------
-----------------------------------------------------------------------------------
* EFFECTIVE APRIL 4, 1994, THE RETAIL AND INSTITUTIONAL CLASSES WERE RECLASSIFIED
AS A SINGLE CLASS OF SHARES KNOWN AS INVESTOR SHARES AND THE INVESTMENT CLASS
WAS RECLASSIFIED AS TRUST SHARES. ON OCTOBER 17, 1994, INVESTOR AND TRUST SHARES
WERE REDESIGNATED CLASS A AND CLASS R SHARES, RESPECTIVELY.
** THE FUND COMMENCED OFFERING CLASS B SHARES AND CLASS C SHARES ON DECEMBER 19,
1994.
+ NUMBER OF SHARES INCLUDES 464,962 OF SUBSCRIPTIONS, 35,257 OF REINVESTMENTS AND
524,902 OF REDEMPTIONS FOR THE INSTITUTIONAL CLASS UP TO APRIL 4, 1994.
++ AMOUNTS INCLUDE $5,339,913 OF SUBSCRIPTIONS, $399,392 OF REINVESTMENTS AND
$6,015,971 OF REDEMPTIONS FOR THE INSTITUTIONAL CLASS UP TO APRIL 4, 1994.
</TABLE>
6. FOREIGN SECURITIES
The Fund may purchase securities of foreign issuers. Investing in securities
of foreign companies and foreign governments involves special risks and
considerations not typically associated with investing in U.S. companies and
the U.S. government. These risks include
24
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited) (continued)
................................................................................
revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more
volatile than those of securities of comparable U.S. companies and the U.S.
government.
7. CAPITAL LOSS CARRYFORWARD
At December 31, 1994 the Fund had available for Federal tax purposes an unused
capital loss carryforward of $6,470,191 to offset future net capital gains
expiring in 2002.
25
................................................................................
<PAGE>
................................................................................
FOR MORE INFORMATION ON THE DREYFUS FAMILY OF FUNDS INCLUDING:
- FUND INFORMATION - 9:00 a.m. to 5:00 p.m., Monday through Friday
- ADDITIONAL PROSPECTUS - Read the prospectus carefully before you invest.
- ACCOUNT INFORMATION - 9:00 a.m. to 5:00 p.m., Monday through Friday
- YIELD AND SHARE PRICE INFORMATION - 24 hours a day, 7 days a week
<TABLE>
<S> <C>
Call 1-800-548-2868
OR WRITE:
The Dreyfus Family of Funds
P.O. Box 9692
Providence, RI 02940-9830
</TABLE>
The Funds are distributed by:
Premier Mutual Fund Services, Inc.
One Exchange Place
10th Floor
Boston, MA 02109
INT 2104
