<PAGE>
ANNUAL REPORT
-----------
The DREYFUS
[Small box above fund name showing a lion's face]
FAMILY
of FUNDS
-----------
---
DREYFUS CORE VALUE FUND
---
DECEMBER 31, 1994
<PAGE>
DEAR SHAREHOLDER,
We are pleased to provide you with performance and portfolio information for
the Dreyfus Core Value Fund for the year ended December 31, 1994.
As you know from recent correspondence, The Laurel Funds are integrating with
The Dreyfus Family of Funds. As a result of this integration, the Laurel
Capital Appreciation Fund is now known, and publicly listed, as the Dreyfus
Core Value Fund. Please be assured that the new name does not affect the
value of your account or the investment objective or strategy of your Fund.
In the pages that follow, we have provided detailed financial statements, a
description of the market environment over the last twelve months and a
commentary on your Fund's investment management strategy and portfolio
changes for the reporting period.
We would like to extend our appreciation for your support and hope that you
will find that the Dreyfus Core Value Fund, which is now part of The Dreyfus
Family of Funds, 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 --
Dreyfus Core Value Fund
February 17, 1995
1
................................................................................
<PAGE>
<TABLE>
TABLE OF CONTENTS
...............................................................................
<S> <C>
Shareholder Letter................................ 1
Economic Review................................... 3
Portfolio Overview................................ 5
Performance Summary............................... 6
Portfolio of Investments.......................... 9
Statement of Assets and Liabilities............... 17
Statement of Operations........................... 18
Statement of Changes in Net Assets................ 19
Financial Highlights.............................. 20
Notes to Financial Statements..................... 25
Independent Auditors' Report...................... 33
Tax Information................................... 34
</TABLE>
2
................................................................................
<PAGE>
ECONOMIC REVIEW
................................................................................
ECONOMIC STRENGTH, MARKET WEAKNESS
Following several years of stop-and-start recovery, the U.S. economy finally
established a steady pace of expansion in 1994. Initially, this helped to
propel the stock market upward, but as the economy continued to expand, the
market stumbled. Broad market averages such as the S&P 500 posted minimal
declines of 2-3% for the year, although many individual stocks lost up to 50%
of their value. The market was also volatile, with investors volleying
between elation and alarm in response to each new government economic report
and interest rate move.
Sector performance varied widely. Basic industrial stocks led performance for
the first three quarters, before beginning to sell off somewhat toward year
end. High technology, especially PC-related stocks, had an exceptional run
during the summer and continued strong as the year drew to a close. After two
dismal years, health care began to come back, benefiting from the de facto
defeat of Washington's reform legislation and several important mergers and
acquisitions of health care-related companies. Transportation, consumer
durables such as autos, utilities and finance sectors fared worse.
RISING INTEREST RATES DAMPENED EQUITY PERFORMANCE
Beginning in February, the Federal Reserve Board signaled its intention to
thwart potential inflation by raising short-term interest rates a total of
six times over the next eleven months. The first few hikes sent bond, and
then equity markets, reeling. Investors already felt the equity market could
be somewhat overvalued. The rise in interest rates provided sufficient fuel
for many investors to sell, thereby driving down equity prices. While later
increases had a less dramatic effect, a kind of catch-22 scenario began to
emerge. Although corporate profits remained strong, investors started to
discount them, believing these profits to be the last of a good thing because
the economy would soon begin to slow significantly in response to the Fed's
monetary tightening actions.
The Fed's first actions were prompted by concerns that the economy had begun
to grow too quickly, and that inflation would surely follow. Later, inflation
did begin to emerge at the producer level. Although consumer prices had yet
to rise, commodity prices were up, and the Fed felt these increases would
eventually flow through to the retail level unless interest rates rose.
Rapidly developing foreign recoveries were, and continue to be, another
concern for the Fed, since international growth creates demand for U.S. goods
and services that puts inflationary pressure on our economy.
MIXED SIGNALS AHEAD
Our outlook for the stock market remains one of cautious long-term optimism,
tempered by the knowledge that things really could go either way in the
period just ahead. While the equity market is not expensive at present,
neither do we believe is it cheap enough to provide compelling values that
would entice new investors to buy in and fuel a rally. On one hand, investors
could begin to sell equities, deciding that rising rates have made
3
................................................................................
<PAGE>
ECONOMIC REVIEW (CONTINUED)
................................................................................
bonds a better relative investment. On the other hand, U.S. economic growth
may moderate some, but it is unlikely to slow significantly given the
strengthening of economies abroad. If the bond market stabilizes, then the
equity market could rise on the strength of good economic fundamentals.
4
................................................................................
<PAGE>
PORTFOLIO OVERVIEW
................................................................................
Amid the challenging investment environment of fiscal 1994, the Fund
performed relatively well, posting a total return of 0.38% for the Investor
Class shares and 0.49% for the Institutional Class shares, respectively,
during the period from January 1, 1994 to December 31, 1994 and an aggregate
total return of (2.31)% for the R Class shares for the period from August 4,
1994 (inception date of Class R Shares) to December 31, 1994. The Fund's
benchmark, the S&P 500, closed the year up 1.31% for the period from January
1, 1994 to December 31, 1994 and 5.30% for the period from March 31, 1994 to
December 31, 1994. The Fund sought to provide shareholders with better
returns than an investment matching the benchmark, as the Fund maintained
lower price-to-earnings and price-to-book ratios than the benchmark despite
investing in smaller companies (as measured by weighted average
capitalization).
The Fund achieved its returns by adhering closely to its underlying
investment philosophy of seeking stocks which combined value and sound
economic fundamentals with a measure of positive business momentum. We found
this combination in several paper company stocks and some selected high
technology stocks which boosted Fund performance considerably. The Fund
particularly benefited from holdings in Philips NV, Continental Bank and
Tandy.
Looking ahead, we intend to remain fully invested in the market and to retain
roughly the same portfolio weightings in various sectors. The Fund has found
value in finance and consumer services stocks, and recently capitalized on
some excellent values in its retailing position.
Given the difficult-to-gauge market environment, we will continue to watch
the economy and the Federal Reserve Board carefully as we seek to ensure the
continued value of your mutual fund investment.
5
................................................................................
<PAGE>
PERFORMANCE SUMMARY
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
- --------------------------------------------------------------------------------
<TABLE>
CHANGE IN VALUE OF $10,000 INVESTED FROM JANUARY 1, 1985 -- DECEMBER 31, 1994+
A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a
hypothetical investment of $10,000 in Dreyfus Core Value Fund Investor shares on December 31, 1984
through December 31, 1994 as compared with the growth of a $10,000 investment in the Standard & Poor's
500 Stock Price Index and Lipper Growth & Income Fund Index. The plot points used to draw the line
graph were as follows:
<CAPTION>
GROWTH OF $10,000
INVESTMENT IN THE GROWTH OF $10,000
GROWTH OF $10,000 STANDARD & POOR'S INVESTMENT IN THE
INVESTED IN INVESTOR SHARES 500 STOCK LIPPER GROWTH &
MONTH ENDED OF THE FUND PRICE INDEX INCOME FUND INDEX
<S> <C> <C> <C>
12/84 $10,000 $10,000 $10,000
3/85 $10,869 $10,918 $10,816
6/85 $11,604 $11,720 $11,485
9/85 $11,655 $11,240 $11,124
12/85 $13,500 $13,174 $12,769
3/86 $15,773 $15,032 $14,468
6/86 $16,467 $15,919 $15,082
9/86 $15,558 $14,808 $14,227
12/86 $16,535 $15,634 $14,832
3/87 $19,252 $18,973 $17,503
6/87 $19,495 $19,924 $18,140
9/87 $20,682 $21,239 $19,162
12/87 $16,579 $16,457 $15,299
3/88 $18,259 $17,391 $16,610
6/88 $19,251 $18,548 $17,679
9/88 $19,512 $18,611 $17,853
12/88 $19,819 $19,183 $18,276
3/89 $21,451 $20,542 $19,458
6/89 $22,719 $22,354 $20,802
9/89 $24,472 $24,743 $22,490
12/89 $24,765 $25,252 $22,408
3/90 $23,765 $24,493 $21,744
6/90 $24,749 $26,032 $22,694
9/90 $20,311 $22,458 $19,753
12/90 $21,438 $24,468 $21,164
3/91 $24,219 $28,015 $24,060
6/91 $23,652 $27,948 $24,039
9/91 $24,888 $29,441 $25,043
12/91 $26,340 $31,906 $26,899
3/92 $25,656 $31,101 $27,011
6/92 $25,777 $31,690 $27,451
9/92 $26,313 $32,691 $28,232
12/92 $27,402 $34,335 $29,857
3/93 $29,297 $35,835 $31,630
6/93 $29,626 $36,005 $32,025
9/93 $31,565 $36,934 $33,472
12/93 $31,927 $37,792 $34,297
3/94 $31,513 $36,364 $33,149
6/94 $31,633 $36,513 $33,343
9/94 $32,817 $38,295 $34,722
12/94 $32,049 $38,286 $34,049
</TABLE>
<TABLE>
AVERAGE ANNUAL TOTAL RETURN -- INVESTOR SHARES
- --------------------------------------------------------------------------------
<S> <C>
YEAR ENDED 12/31/94 0.38%
- --------------------------------------------------------------------------------
FIVE YEARS ENDED 12/31/94 5.29%
- --------------------------------------------------------------------------------
TEN YEARS ENDED 12/31/94 12.35%
- --------------------------------------------------------------------------------
<FN>
+ Hypothetical illustration of $10,000 invested in Investor Shares of January
1, 1985 and reinvestment of dividends and capital gains at net asset value
through December 31, 1994.
The Standard & Poor's 500 Stock Index is a market capitalization index composed
of 500 widely held common stocks listed on the New York Stock Exchange,
American Stock Exchange and over-the-counter market. Because the index is not
a managed portfolio, there are no advisory fees or internal management expenses
refleted in theindex's performance.
The Lipper Growth & Income Fund Index is a net asset value weighted index of
the 30 largest funds within the Growth & Income Investment objective. It is
calculated daily with adjustments for income dividends and capital gains
distributions as of the ex-dividend dates.
Index information is available at month-end only, therefore, the closest
month-end to inception date of the Fund has been used.
This period was one in which common stock prices fluctuated and the results
should not be considered as representative of dividend income or capital gain
or loss which may be realized from an investment in the Fund today. No
adjustment has been made for a shareholder's tax liability on dividends or
capital gains.
Further information relating to Fund perfromance, including fee waivers and/or
expense reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in the report.
NOTE: All figures cited here and on the following pages represent past
performance and do not guarantee future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares
upon redemption may be worth more or less than original cost.
</TABLE>
6
................................................................................
<PAGE>
PERFORMANCE SUMMARY (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
- --------------------------------------------------------------------------------
<TABLE>
CHANGE IN VALUE OF $10,000 INVESTED FROM FEBRUARY 1, 1993 -- DECEMBER 31, 1994+
A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a
hypothetical investment of $10,000 in Dreyfus Core Value Fund Intitutional shares on February 1, 1993
through December 31, 1994 as compared with the growth of a $10,000 investment in the Standard & Poor's
500 Stock Price Index and Lipper Growth & Income Fund Index. The plot points used to draw the line
graph were as follows:
<CAPTION>
GROWTH OF $10,000
INVESTMENT IN THE GROWTH OF $10,000
GROWTH OF $10,000 STANDARD & POOR'S INVESTMENT IN THE
INVESTED IN INSTITUTIONAL 500 STOCK LIPPER GROWTH &
MONTH ENDED SHARES OF THE FUND PRICE INDEX INCOME FUND INDEX
<S> <C> <C> <C>
1/93 - $10,000 $10,000
2/01/93 $10,000 - -
2/93 $10,085 $10,136 $10,158
3/93 $10,485 $10,350 $10,424
6/93 $10,609 $10,399 $10,554
9/93 $11,302 $10,667 $11,031
12/93 $11,438 $10,915 $11,303
3/94 $11,290 $10,503 $10,925
6/94 $11,336 $10,546 $10,988
9/94 $11,763 $11,060 $11,443
12/94 $11,494 $11,058 $11,221
</TABLE>
<TABLE>
AVERAGE ANNUAL TOTAL RETURN -- INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
<S> <C>
YEAR ENDED 12/31/94 0.49%
- --------------------------------------------------------------------------------
INCEPTION (2/1/93) THROUGH 12/31/94 7.55%
- --------------------------------------------------------------------------------
<FN>
+ Hypothetical illustration of $10,000 invested in Institutional Shares at inception
(February 1, 1993) and reinvestment of dividends and capital gains at net asset
value through December 31, 1994.
The Standard & Poor's 500 Stock Index is a market capitalization index composed
of 500 widely held common stocks listed on the New York Stock Exchange, American
Stock Exchange and over-the-counter market. Because the index is not a managed
portfolio, there are no advisory fees or internal management expenses refleted
in the index's performance.
The Lipper Growth & Income Fund Index is a net asset value weighted index of
the 30 largest funds within the Growth & Income Investment objective. It is
calculated daily with adjustments for income dividends and capital gains
distributions as of the ex-dividend dates.
Index information is available at month-end only, therefore, the closest
month-end to inception date of the Fund has been used.
This period was one in which common stock prices fluctuated and the results
should not be considered as representative of dividend income or capital gain
or loss which may be realized from an investment in the Fund today. No
adjustment has been made for a shareholder's tax liability on dividends or
capital gains.
Further information relating to Fund perfromance, including fee waivers and/or
expense reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in the report.
NOTE: All figures cited here and on the following pages represent past
performance and do not guarantee future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares
upon redemption may be worth more or less than original cost.
</TABLE>
7
................................................................................
<PAGE>
PERFORMANCE SUMMARY (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
- --------------------------------------------------------------------------------
<TABLE>
CHANGE IN VALUE OF $10,000 INVESTED FROM AUGUST 4, 1994 -- DECEMBER 31, 1994+
A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a
hypothetical investment of $10,000 in Dreyfus Core Value Fund Class R shares on August 4, 1994
through December 31, 1994 as compared with the growth of a $10,000 investment in the Standard & Poor's
500 Stock Price Index and Lipper Growth & Income Fund Index. The plot points used to draw the line
graph were as follows:
<CAPTION>
GROWTH OF $10,000
INVESTMENT IN THE GROWTH OF $10,000
GROWTH OF $10,000 STANDARD & POOR'S INVESTMENT IN THE
INVESTED IN CLASS R SHARES 500 STOCK LIPPER GROWTH &
MONTH ENDED OF THE FUND PRICE INDEX INCOME FUND INDEX
<S> <C> <C> <C>
7/84 - $10,000 $10,000
8/04/94 $10,000 - -
8/94 $10,313 $10,409 $10,380
9/94 $ 9,994 $10,155 $10,136
12/94 $ 9,769 $10,153 $ 9,939
</TABLE>
<TABLE>
AGGREGATE TOTAL RETURN -- CLASS R SHARES
- --------------------------------------------------------------------------------
<S> <C>
INCEPTION (8/4/94) THROUGH 12/31/94 (2.31%)
- --------------------------------------------------------------------------------
<FN>
+ Hypothetical illustration of $10,000 invested in Class R Shares at inception
(August 4, 1994) reinvestment of dividends and capital gains at net asset value
through December 31, 1994.
The Standard & Poor's 500 Stock Index is a market capitalization index composed
of 500 widely held common stocks listed on the New York Stock Exchange,
American Stock Exchange and over-the-counter market. Because the index is not
a managed portfolio, there are no advisory fees or internal management expenses
refleted in theindex's performance.
The Lipper Growth & Income Fund Index is a net asset value weighted index of
the 30 largest funds within the Growth & Income Investment objective. It is
calculated daily with adjustments for income dividends and capital gains
distributions as of the ex-dividend dates.
Index information is available at month-end only, therefore, the closest
month-end to inception date of the Fund has been used.
This period was one in which common stock prices fluctuated and the results
should not be considered as representative of dividend income or capital gain
or loss which may be realized from an investment in the Fund today. No
adjustment has been made for a shareholder's tax liability on dividends or
capital gains.
Further information relating to Fund perfromance, including fee waivers and/or
expense reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in the report.
NOTE: All figures cited here and on the following pages represent past
performance and do not guarantee future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares
upon redemption may be worth more or less than original cost.
</TABLE>
8
................................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
COMMON STOCKS -- DOMESTIC -- 86.6%
FINANCIAL SERVICES -- 19.1%
88,700 Aetna Life & Casualty Company $ 4,179,988
68,000 Ahmanson H F & Company 1,096,500
327,000 American Express Company 9,646,500
42,000 American International Group Inc. 4,116,000
175,000 Bank Of Boston Corporation 4,528,125
79,930 BankAmerica Corporation 3,157,235
137,300 Chase Manhattan Corporation 4,719,686
30,000 Crestar Financial Corporation 1,128,750
71,000 Dean Witter, Discover & Company 2,405,125
40,700 Federal National Mortgage Association 2,966,013
124,000 First Chicago Corporation 5,921,000
39,500 First Tennessee National Corporation 1,609,625
161,500 Fleet Financial Group Inc. 5,248,750
19,700 Lincoln National Corporation 689,500
33,000 Mercantile Bancorp Inc. 1,031,250
45,000 Merrill Lynch & Company Inc. 1,608,750
67,000 Mid Ocean Limited+ 1,825,750
79,000 Morgan (JP) & Company Inc. 4,424,000
117,000 St. Paul Companies Inc. 5,235,750
89,400 Student Loan Marketing Association 2,905,500
70,000 Sunamerica Inc. 2,537,500
43,800 Travelers Inc. 1,423,500
------------
72,404,797
------------
CONSUMER NON-DURABLES -- 11.3%
97,500 American Brands Inc. 3,656,250
271,200 Archer Daniels Midland Company 5,593,500
35,500 Dean Foods Company 1,029,500
149,000 Dial Corporation 3,166,250
85,500 Liz Claiborne Inc. 1,442,813
57,000 Loews Corporation 4,951,875
38,298 Nike Inc., Class B 2,857,988
136,000 Philip Morris Companies Inc. 7,820,000
518,000 RJR Nabisco Holdings Corporation+ 2,849,000
137,000 Seagram Company, Limited 4,041,500
45,000 Sherwin Williams Company 1,490,625
4,000 Unilever N V, ADR 466,000
186,200 United States Shoe Corporation 3,491,250
------------
42,856,551
------------
CONSUMER SERVICES -- 11.2%
132,000 American Greetings Corporation, Class A 3,564,000
102,000 American Stores Company 2,741,250
</TABLE>
See Notes to Financial Statements. 9
................................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
COMMON STOCKS -- DOMESTIC (continued)
CONSUMER SERVICES (CONTINUED)
50,000 Caldor Corporation+ $ 1,112,500
179,000 Dillard Department Stores Inc., Class A 4,788,250
15,000 Hanson Plc, ADR 270,000
40,000 King World Productions Inc.+ 1,380,000
57,000 Knight Ridder Inc. 2,878,500
153,500 Kroger Company+ 3,703,188
85,000 Limited Inc. 1,540,625
83,000 May Dept Stores Company 2,801,250
70,500 Penney (J.C.) Inc. 3,146,063
122,000 Rite Aid Corporation 2,851,750
70,000 Sears, Roebuck & Company 3,220,000
147,500 Tandy Corporation 7,393,437
55,500 Waban Inc.+ 985,125
------------
42,375,938
------------
CAPITAL GOODS -- 9.8%
86,000 General Electric Company 4,386,000
126,200 Honeywell Inc. 3,975,300
54,600 ITT Corporation 4,838,925
55,700 Litton Industries, Inc.+ 2,060,900
117,000 Martin Marietta Corporation 5,191,875
285,300 Philips Electronics N.V. 8,380,688
130,000 Rockwell International Corporation 4,647,500
95,000 Varity Corporation+ 3,443,750
------------
36,924,938
------------
ENERGY -- 7.5%
35,000 Amerada Hess Corporation 1,596,875
79,000 Chevron Corporation 3,525,375
113,000 Exxon Corporation 6,864,750
160,000 Horsham Corporation 2,040,000
30,000 MAPCO Inc. 1,537,500
35,000 Mobil Corporation 2,948,750
32,800 Royal Dutch Petroleum Company ADR 3,526,000
30,000 Schlumberger Limited 1,511,250
68,500 Tosco Corporation 1,995,063
197,000 Transcanada Pipeline Limited 2,388,625
12,400 Ypf Sociedad Anonima, ADR 265,050
------------
28,199,238
------------
BASIC INDUSTRIES -- 6.2%
60,000 Abitibi Price Inc.+ 817,500
28,700 AK Steel Holdings Corporation+ 882,525
</TABLE>
10 See Notes to Financial Statements.
................................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
COMMON STOCKS -- DOMESTIC (continued)
BASIC INDUSTRIES (CONTINUED)
52,000 Bowater Inc. $ 1,384,500
97,000 Champion International Corporation 3,540,500
23,000 Georgia Pacific Corporation 1,644,500
132,300 Grace W R & Company 5,110,087
8,000 Grupo Simec S.A., ADR+ 121,000
63,700 IMC Global Inc. 2,755,025
23,000 International Paper Company 1,733,625
112,000 James River Corporation 2,268,000
90,000 Louisiana Pacific Corporation 2,452,500
25,625 Rayonier Inc. 781,563
------------
23,491,325
------------
UTILITIES -- 5.3%
34,400 AT & T Corporation 1,728,600
180,000 CMS Energy Corporation 4,117,500
57,000 GTE Corporation 1,731,375
104,100 Illinova Corporation 2,264,175
149,000 MCI Communications Corporation 2,737,875
49,000 NYNEX Corporation 1,800,750
90,000 Pacific Enterprises 1,912,500
85,000 Pinnacle West Capital Corporation 1,678,750
7,061 U S West Inc. 251,548
75,000 Unicom Corporation 1,800,000
------------
20,023,073
------------
TECHNOLOGY -- 4.3%
92,000 Apple Computer Inc. 3,588,000
27,000 Harris Corporation 1,147,500
28,000 Intel Corporation 1,788,500
138,000 Sun Microsystems Inc.+ 4,899,000
50,000 Xerox Corporation 4,950,000
------------
16,373,000
------------
HEALTH CARE -- 4.1%
11,900 Genetics Institute Inc.+ 428,400
112,000 Healthtrust -- The Hospital Company+ 3,556,000
55,500 Lilly (Eli) & Company 3,642,187
118,500 National Medical Enterprises Inc.+ 1,673,813
48,000 Schering Plough Corporation 3,552,000
34,000 Warner Lambert Company 2,618,000
------------
15,470,400
------------
TRANSPORTATION -- 3.3%
32,000 AMR Corporation+ 1,704,000
</TABLE>
See Notes to Financial Statements. 11
................................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
COMMON STOCKS -- DOMESTIC (continued)
TRANSPORTATION (CONTINUED)
120,000 Canadian Pacific Limited $ 1,800,000
36,800 Conrail Inc. 1,858,400
45,000 Illinois Central Corporation, Series A 1,383,750
140,000 Southern Pacific Rail Corporation+ 2,537,500
60,970 Volkswagen AG, ADR 3,338,108
------------
12,621,758
------------
CONSUMER DURABLES -- 2.9%
57,783 Black & Decker Corporation 1,372,346
46,100 Fleetwood Enterprises Inc. 864,375
250,000 Ford Motor Company 7,000,000
75,000 Masco Corporation 1,696,875
------------
10,933,596
------------
REAL ESTATE -- 1.5%
70,700 Associated Estates Realty Corporation 1,484,700
97,000 Avalon Properties Inc. 2,231,000
83,333 Camden Property Trust 2,072,908
------------
5,788,608
------------
COMMUNICATION -- 0.1%
7,000 Tele Danmark, ADR+ 178,500
------------
TOTAL COMMON STOCKS -- DOMESTIC
(Cost $319,823,880) 327,641,722
------------
COMMON STOCKS -- FOREIGN -- 8.0%
JAPAN -- 1.9%
12,000 Chudenko Corporation 439,538
60,000 Dai-Tokyo Fire & Marine Insurance Company 437,130
20,000 Fuji Photo Film Limited 463,623
30,000 Kao Corporation 340,191
50,000 Mitsubishi Heavy Industries 381,335
15,400 Murata Manufacturing Company 591,892
50,000 Nishimatsu Construction Company 521,826
15,000 Nomura Securities Company 311,591
22,000 Rinnai Corporation 461,415
22,000 Sanyo Coca Cola Company 328,951
40,000 Sekisui House 445,559
35,000 Sumitomo Corporation 358,254
13,000 Taihei Dengyo Kaisha Limited 310,487
20,000 Tokai Rubber Industries 337,180
25,000 Toyota Motor Company 526,844
</TABLE>
12 See Notes to Financial Statements.
................................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
COMMON STOCKS -- FOREIGN (continued)
JAPAN (CONTINUED)
19,000 Yamanouchi Pharmaceutical Company $ 390,868
35,000 Yamato Transport 432,012
------------
7,078,696
------------
GREAT BRITAIN -- 1.1%
65,000 Abbey National+ 437,347
80,000 Blue Circle Industries+ 354,259
50,000 Boots Company 393,535
70,000 British Gas 341,741
70,000 BTR 322,026
15,000 Laird Group New+ 80,741
75,000 Laird Group Plc+ 406,053
55,479 National Westminster Bank 447,944
50,000 Powerscreen International 183,858
100,000 Scapa Group+ 297,303
50,000 Severn Trent 415,441
50,781 United Newspapers 375,844
------------
4,056,092
------------
SWEDEN -- 0.9%
29,000 AGA AB, Series B 267,396
100,000 Astra AB, Class A, ADR+ 2,587,500
25,000 Pharmacia AB, Series A 400,455
10,000 Skanska AB, Series B 230,177
------------
3,485,528
------------
FRANCE -- 0.6%
1,535 Alcatel Alsthom 131,054
12,100 Alcatel Alsthom, ADR 205,700
10,000 C.S.F.(Thompson)+ 299,195
2,900 Danone 406,684
1,000 Guyenne & Gascogne 252,762
4,246 Societe Generale 445,985
3,095 Societe Nationale Elf Equitiane 217,826
5,225 Total, Class B 303,463
------------
2,262,669
------------
BERMUDA -- 0.6%
91,000 Ace Limited ADR 2,127,125
------------
GERMANY -- 0.5%
2,300 Bayer AG 538,906
1,000 Deutsche Bank AG 464,741
</TABLE>
See Notes to Financial Statements. 13
................................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
COMMON STOCKS -- FOREIGN (continued)
GERMANY (CONTINUED)
1,000 Siemens AG $ 418,912
1,400 Veba AG 487,978
------------
1,910,537
------------
SWITZERLAND -- 0.5%
750 Ciba-Geigy AG 447,479
300 Magazine Zum Globus 179,335
500 Nestle SA 476,318
600 Sandoz AG 312,605
1,600 Schweizerischer Banksverein 442,475
------------
1,858,212
------------
AUSTRALIA -- 0.4%
45,000 Amcor Limited 325,140
120,000 Boral 316,302
263,043 Goodman Fielder Limited 232,473
35,000 National Australia Bank Limited 280,020
52 News Corporation Limited+ 179
100,000 Southcorp Holdings Limited 224,823
104 The News Corporation 407
85,635 Westpac Banking Corporation 288,790
------------
1,668,134
------------
SPAIN -- 0.4%
4,000 Banco Intercontinental Espanol 330,282
2,400 Banco Popular Espanol 285,313
5,000 Gas Y Electricidad 211,934
30,000 Iberdrola SA 185,043
8,000 Repsol SA 216,947
21,000 Telefonica De Espana 248,053
------------
1,477,572
------------
NETHERLANDS -- 0.3%
14,538 ABN Amro Holdings 505,007
6,000 Bols Wessanen (Koninklijke) 113,716
6,970 Internationale Nederlanden 329,247
13,609 Stad Rotterdam CVA 295,558
------------
1,243,528
------------
ITALY -- 0.2%
15,000 Istituto Mobiliare Italiano, ADR 275,625
160,000 Stet, Di Risp 379,402
------------
655,027
------------
</TABLE>
14 See Notes to Financial Statements.
................................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
COMMON STOCKS -- FOREIGN (continued)
MALAYSIA -- 0.1%
106,666 Malaysian Intern Shipping Corporation $ 300,055
120,000 Sime Darby Berhad 276,638
------------
576,693
------------
MEXICO -- 0.1%
120,000 Telefonos De Mexico, Series L 246,995
27,000 Tolmex S.A., Class B2 227,940
------------
474,935
------------
AUSTRIA -- 0.1%
2,600 Evn Energ Versorg 338,124
------------
HONG KONG -- 0.1%
100,000 Cathay Pacific Airways 145,396
40,000 Cheung Kong(Holdings) 162,843
------------
308,239
------------
SINGAPORE -- 0.1%
30,000 Singapore Airlines 275,815
------------
BELGIUM -- 0.1%
1,500 Electrabel 269,430
------------
PORTUGAL -- 0.0%
9,000 Espirito Santo Financial Holdings S.A., ADR 120,376
------------
TOTAL COMMON STOCKS -- FOREIGN
(Cost $31,041,835) 30,186,732
------------
WARRANTS -- 0.0%
(Cost $3,671)
534 Chase Manhattan Corporation, Warrants,
Expire 06/30/96+ 2,603
------------
CONVERTIBLE PREFERRED STOCK -- 2.2%
50,000 Cellular Communications Inc., Conv. Pfd., $0.01+ 2,675,000
61,200 Ford Motor Company, Conv. Pfd., Series A, $4.20 5,630,400
------------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $7,017,302) 8,305,400
------------
PREFERRED STOCK -- FOREIGN -- 0.1%
(Cost $418,818)
1,800 RWE-AG Pfd. 407,229
------------
</TABLE>
See Notes to Financial Statements. 15
................................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<S> <C> <C>
CONVERTIBLE BONDS -- 0.1%
(Cost $713,594)
$ 900,000 Nu Med Inc., Sr. Sub. Deb., (in default)
13.750% due 09/15/95 $ 203,625
------------
COMMERCIAL PAPER -- 2.2%
(Cost $8,448,000)
8,448,000 General Electric Capital Corporation, Note,
5.800% due 1/3/95 8,448,000
------------
TOTAL INVESTMENTS
(Cost $367,467,100*) 99.2% 375,195,311
OTHER ASSETS AND LIABILITIES (NET) 0.8 3,178,211
----- ------------
NET ASSETS 100.0% $378,373,522
===== ============
<FN>
- --------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
ADR -- American Depository Receipt
</TABLE>
16 See Notes to Financial Statements.
................................................................................
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (Cost $367,467,100) (Note 1)
See accompanying schedule $375,195,311
Cash and foreign currency (Cost $912,899) 906,810
Receivable for investment securities sold 3,970,332
Dividends and interest receivable 1,164,775
Receivable for Fund shares sold 48,480
------------
TOTAL ASSETS 381,285,708
------------
LIABILITIES:
Payable for investment securities purchased $1,768,928
Payable for Fund shares redeemed 764,723
Investment management fee payable (Note 2) 315,544
Accrued Trustees' fees and expenses (Note 2) 33,249
Distribution fee payable (Note 3) 9,278
Accrued expenses and other payables 20,464
----------
TOTAL LIABILITIES 2,912,186
------------
NET ASSETS $378,373,522
============
NET ASSETS consist of:
Undistributed net investment income $ 591,925
Accumulated net realized gain on securities,
forward foreign exchange contracts, and foreign
currency transactions 4,113,430
Net unrealized appreciation of securities, foreign
currencies and net other assets 7,722,792
Paid-in capital 365,945,375
------------
TOTAL NET ASSETS $378,373,522
============
NET ASSET VALUE
INVESTOR SHARES:
Net asset value, offering and redemption price per
share
($317,868,349 / 12,943,931 shares of beneficial
interest outstanding) $ 24.56
============
INSTITUTIONAL SHARES:
Net asset value, offering and redemption price per
share
($59,434,739 / 2,420,240 shares of beneficial
interest outstanding) $ 24.56
============
CLASS R SHARES:
Net asset value, offering and redemption price per
share
($1,070,434 / 43,588 shares of beneficial
interest outstanding) $ 24.56
============
</TABLE>
See Notes to Financial Statements. 17
................................................................................
<PAGE>
STATEMENT OF OPERATIONS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes
of $133,434) $ 9,547,039
Interest 1,011,200
------------
TOTAL INVESTMENT INCOME 10,558,239
------------
EXPENSES:
Investment management fee (Note 2) $2,625,878
Distribution fee (Note 3) 852,639
Investment advisory fee (Note 2) 847,797
Transfer agent fees (Note 2) 110,155
Trustees' fees and expenses (Note 2) 63,163
Custodian fees (Note 2) 9,942
Other 17,737
Fees waived by investment manager (Note 2) (59,679)
----------
TOTAL EXPENSES 4,467,632
------------
NET INVESTMENT INCOME 6,090,607
------------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(Notes 1 and 4):
Net realized gain on:
Securities transactions 38,792,137
Forward foreign exchange contracts 18,673
Foreign currencies 110,631
------------
Net realized gain on investments during the
year 38,921,441
Net change in unrealized depreciation of:
Securities (42,539,989)
Foreign currencies (2,704)
------------
Net unrealized depreciation of investments
during the year (42,542,693)
------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS (3,621,252)
------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 2,469,355
============
</TABLE>
18 See Notes to Financial Statements.
................................................................................
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
12/31/94 12/31/93
<S> <C> <C>
Net investment income $ 6,090,607 $ 5,013,674
Net realized gain on investments, forward foreign
exchange contracts and foreign currency
transactions during the year 38,921,441 27,274,319
Net unrealized appreciation/(depreciation) on
securities and foreign currencies during the year (42,542,693) 34,564,044
------------ -------------
Net increase in net assets resulting from
operations 2,469,355 66,852,037
Distributions to shareholders from net investment
income:
Investor Shares (formerly Retail Class) (4,790,982) (3,764,596)
Institutional Shares (1,036,131) (1,026,635)
Class R Shares (formerly Trust Shares) (14,497) --
Distribution to shareholders from net realized
gains on investments:
Investor Shares (formerly Retail Class) (35,173,927) (18,423,800)
Institutional Shares (7,027,785) (4,160,736)
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) 6,323,234 (106,984,501)
Institutional Shares (12,960,250) 73,690,589
Class R Shares (formerly Trust Shares) 1,263,580 --
------------ -------------
Net increase/(decrease) in net assets (51,095,210) 6,182,358
NET ASSETS:
Beginning of year 429,468,732 423,286,374
------------ -------------
End of year (including undistributed net investment
income of $591,925 and $213,589, respectively) $378,373,522 $ 429,468,732
============ =============
</TABLE>
See Notes to Financial Statements. 19
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
- --------------------------------------------------------------------------------
<TABLE>
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
<CAPTION>
YEAR YEAR YEAR
ENDED ENDED ENDED
12/31/94## 12/31/93+++ 12/31/92
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------
Net asset value, beginning of year $ 27.80 $ 25.46 $ 27.40
-------- --------- -------
Income from investment operations:
Net investment income# 0.42 0.31 0.36
Net realized and unrealized gain/(loss) on
investments (0.29) 3.86 0.70
-------- --------- -------
Total from investment operations 0.13 4.17 1.06
-------- --------- -------
Less distributions:
Distributions from net investment income (0.40) (0.30) (0.36)
Distributions from net realized gains on
investments (2.97) (1.53) (2.64)
-------- --------- -------
Total Distributions: (3.37) (1.83) (3.00)
-------- --------- -------
Net asset value, end of year $ 24.56 $ 27.80 $ 25.46
======== ========= =======
Total return+ 0.38% 16.51% 4.03%
======== ========= =======
Ratios to average net assets/
supplemental data:
Net assets, end of year (in 000's) $317,868 $ 349,813 $423,286
Ratio of operating expenses to average
net assets++ 1.11% 1.15% 1.22%
Ratio of net investment income to average
net assets 1.47% 1.13% 1.33%
Portfolio turnover rate++++ 73% 75% 66%
- ---------------------------------------------------------------------------------------
<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.
+ Total return represents aggregate total return for the years 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 years ended December 31, 1994 and 1993 would have
been 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 because the
use of the undistributed 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.
# Without the voluntary waiver of fees and/or reimbursement of expenses by the
investment adviser and/or investment manager, net investment income for the
years ended December 31, 1994 and 1993 would have been $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>
20 See Notes to Financial Statements.
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
<CAPTION>
YEAR YEAR YEAR
ENDED ENDED ENDED
12/31/91 12/31/90+++ 12/31/89
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of year $ 23.20 $ 27.49 $ 28.65
--------- -------- --------
Income from investment operations:
Net investment income# 0.39 0.55 0.87
Net realized and unrealized gain/(loss) on
investments 4.88 (4.23) 6.12
--------- -------- --------
Total from investment operations 5.27 (3.68) 6.99
--------- -------- --------
Less distributions:
Distributions from net investment income (0.50) (0.55) (0.55)
Distributions from net realized gains on investments (0.57) (0.06) (7.60)
--------- -------- --------
Total Distributions: (1.07) (0.61) (8.15)
--------- -------- --------
Net asset value, end of year $ 27.40 $ 23.20 $ 27.49
========= ======== ========
Total return+ 22.87% (13.44)% 24.96%
========= ======== ========
Ratios to average net assets/
supplemental data:
Net assets, end of year (in 000's) $ 508,971 $474,998 $640,116
Ratio of operating expenses to average
net assets++ 1.20% 1.26% 1.23%
Ratio of net investment income to average
net assets 1.61% 1.96% 2.75%
Portfolio turnover rate++++ 157% 180% 111%
- -------------------------------------------------------------------------------------------
<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.
+ Total return represents aggregate total return for the years indicated.
++ Without the voluntary reimbursement of expenses and/or waiver of fees by the the
investment adviser and/or investment manager, 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.
+++ Per share amounts have been calculated using the monthly average share method,
which more appropriately presents the per share data for this year because the
use of the undistributed 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.
# Without the voluntary waiver of fees and/or reimbursement of expenses by the
investment adviser and/or investment manager, net investment income for the
years ended December 31, 1994 and 1993 would have been $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. 21
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
<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 year $ 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 gains
on investments (1.88) (5.36) (5.80) (1.56)
-------- -------- -------- --------
Total Distributions: (2.47) (6.68) (6.30) (2.30)
-------- -------- -------- --------
Net asset value, end of year $ 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 year (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.
+ Total return represents aggregate total return for the years 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 years ended December 31, 1994 and 1993 would have
been 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 because the
use of the undistributed 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.
# Without the voluntary waiver of fees and/or reimbursement of expenses by the
investment adviser and/or investment manager, net investment income for the
years ended December 31, 1994 and 1993 would have been $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>
22 See Notes to Financial Statements.
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
- --------------------------------------------------------------------------------
<TABLE>
FOR AN INSTITUTIONAL CLASS SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
<CAPTION>
YEAR PERIOD
ENDED ENDED
12/31/94## 12/31/93*+++
- -------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 27.80 $ 25.96
-------- --------
Income from investment operations:
Net investment income# 0.47 0.32
Net realized and unrealized gain/(loss) on
investments (0.31) 3.38
-------- --------
Total from investment operations 0.16 3.70
-------- --------
Less distributions:
Distributions from net investment income (0.43) (0.33)
Distributions from net realized gains on investments (2.97) (1.53)
-------- --------
Total Distributions: (3.40) (1.86)
-------- --------
Net asset value, end of period $ 24.56 $ 27.80
======== ========
Total return+ 0.49% 14.38%
======== ========
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 59,435 $ 79,656
Ratio of operating expenses to average net assets++ 1.02% 1.04%**
Ratio of net investment income to average net assets 1.57% 1.24%**
Portfolio turnover rate 73% 75%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
* 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 ratio of expenses to average
net assets for the year ended December 31, 1994 and for the period ended
December 31, 1993 would have been 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 because the
use of the undistributed method did not accord with results of operations.
# 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 $0.46 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. 23
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
- --------------------------------------------------------------------------------
<TABLE>
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<CAPTION>
PERIOD
ENDED
12/31/94*##
- --------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 28.45
-------
Income from investment operations:
Net investment income# 0.29
Net realized and unrealized loss on investments (0.83)
-------
Total from investment operations (0.54)
-------
Less distributions:
Distributions from net investment income (0.38)
Distributions from net realized gains on investments (2.97)
-------
Total Distributions: (3.35)
-------
Net asset value, end of period $ 24.56
=======
Total return+ (2.31)%
=======
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 1,070
Ratio of operating expenses to average net assets++ 0.86%**
Ratio of net investment income to average net assets 1.72%**
Portfolio turnover rate 73%
- --------------------------------------------------------------------------------
<FN>
* On August 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 period 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 period
ended December 31, 1994 would have been 0.88%.
# Net investment income before the voluntary waiver of fees by the investment
manager for the period ended December 31, 1994 would have been $0.29.
## 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>
24 See Notes to Financial Statements.
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS
................................................................................
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 (the "Fund"),
Premier Managed Income Fund and Dreyfus Special Growth 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. As of
February 1, 1993 the Trust offered two classes of shares: Retail and
Institutional. On April 4, 1994, the Retail Class of shares was renamed the
Investor Shares and the Trust Shares were added as a third class of shares.
On October 17, 1994, the Trust Shares were redesignated as Class R Shares.
Investor Shares are sold primarily to retail investors and bear a
distribution fee. Institutional Shares are designed for clients of certain
institutional investors, such as financial planners or investment advisers,
and bear a lower distribution fee. Class R Shares are sold primarily to bank
trust departments and other financial service providers (including 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, 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.
25
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (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 risk, 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 the value at the time it was closed.
The use of forward foreign currency contracts does not eliminate fluctuations
in the underlying prices 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 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
26
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
................................................................................
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 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 based on the proceeds from such sale which 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 the 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 is less than (exceeds) the premium
received when the option was written, 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 based on the proceeds from such
sale which 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
27
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (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 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.
Permanent differences incurred during the Fund's fiscal year resulting from
different book and tax accounting for foreign currency have been reclassified
to undistributed net investment income at year-end.
(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 RELATED PARTY
TRANSACTIONS
Effective as of October 17, 1994, the Trust's investment management agreement
with Mellon Bank, N.A. ("Mellon Bank") was transferred to The Dreyfus
Corporation (the "Manager"), a wholly-owned subsidiary of Mellon Bank. The
Manager provides, or
28
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
................................................................................
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 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 year ended December 31, 1994, the Manager waived
$59,679. 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).
For the period from April 4, 1994 to October 16, 1994, Mellon Bank served as
the Trust's investment manager pursuant to the investment management
agreement described above. Prior to April 4, 1994, the Trust had an
investment advisory agreement under which the Fund paid The Boston Company
Advisors Inc., a wholly-owned subsidiary of Mellon Bank, a monthly fee at the
annual rate of 0.75% of the value of its average daily net assets.
Prior to April 4, 1994, the Trust had individual contracts, which contained
specific fee provisions, with Boston Safe Deposit and Trust Company, a
wholly-owned subsidiary of Mellon Bank, and The Shareholder Services Group,
Inc. to provide custody and transfer agent services, respectively, to the
Fund. Effective April 4, 1994, the payment of fees for custody, accounting
and transfer agent services are covered by the investment management
agreement described above.
Operating expenses directly attributable to a particular class of shares are
charged only to that class' operations. In addition to the distribution fees,
gross class-specific operating expenses include transfer agent fees. For the
year ended December 31, 1994, the Investor and Institutional shares incurred
transfer agent fees of $90,388 and $19,767, respectively.
For the period from April 4, 1994 to September 23, 1994, Frank Russell
Investment Management Company (the "Administrator") served as the Fund's
administrator and provided, pursuant to an administration agreement, various
administrative and corporate secretarial services to the Fund. For the period
from April 4, 1994 to September 23, 1994, Mellon Bank, as investment manager,
paid the Administrator's fee out of the management fee described above.
Prior to October 17, 1994, the Trust had a contract with Funds Distributor,
Inc. to serve as distributor of the Trust's shares. Effective as of October
17, 1994, Premier Mutual Fund Services, Inc. ("Premier") serves as the
Trust's distributor. Premier also serves as
29
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
................................................................................
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
Dreyfus/Laurel Funds 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
pays each Director or Trustee who is not an officer or employee of Premier
(or of 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 reimburses each Director or Trustee for
travel and out-of-pocket expenses.
3. DISTRIBUTION PLAN
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1
under the 1940 Act relating to Investor Shares and Institutional Class
Shares. Under the Plan, the Fund may pay annually up to .25% of the value of
the average daily net assets attributable to its Investor Shares and up to
.15% of the value of the average daily net assets attributable to its
Institutional Class Shares to compensate Premier and, in the case of Investor
Shares, Dreyfus Service Corporation, an affiliate of the Manager, for
shareholder servicing activities and to compensate Premier for activities and
expenses primarily intended to result in the sale of the respective class of
shares. The Class R Shares bear no distribution fee.
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 year ended December 31,
1994 were $283,296,505 and $319,678,994, respectively.
At December 31, 1994, 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 $27,092,133 and $19,363,922, respectively.
30
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
................................................................................
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.
<TABLE>
- -----------------------------------------------------------------------------------------
DREYFUS CORE VALUE FUND
- -----------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED YEAR ENDED
December 31, 1994 December 31, 1993
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR SHARES (formerly
Retail Class):
Sold 1,267,535 $ 35,429,803 2,612,825 $ 69,890,338
Issued as reinvestment of
dividends and
distributions 1,410,642 35,673,508 711,080 19,588,430
Redeemed (2,315,216) (64,780,077) (4,117,152) (112,112,729)
Exchanged for Institutional
shares -- -- (3,249,249) (84,350,540)
---------- ------------ ---------- -------------
Net increase/(decrease) 362,961 $ 6,323,234 (4,042,496) $(106,984,501)
=========== ============ ========== =============
- -----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
December 31, 1994 December 31, 1993*
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSTITUTIONAL SHARES:
Sold 12,106,152 $ 342,392,264 21,699,736 $ 604,517,957
Issued as reinvestment
of dividends and
distributions 295,150 7,485,142 182,512 5,032,162
Issued in exchange for
Retail shares -- -- 3,249,249 84,350,504
Redeemed (12,845,855) (362,837,656) (22,266,704) (620,210,034)
----------- ------------- ----------- -------------
Net increase/(decrease) (444,553) $ (12,960,250) 2,864,793 $ 73,690,589
=========== ============= =========== =============
- -----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
December 31, 1994**
SHARES AMOUNT
- -------------------------------------------------------------------------------
<S> <C> <C>
CLASS R SHARES (formerly Trust Shares):
Sold 63,627 $1,806,424
Issued as reinvestment of dividends and
distributions 4,890 123,153
Redeemed (24,929) (665,997)
------- ----------
Net increase 43,588 $1,263,580
======= ==========
- -------------------------------------------------------------------------------
<FN>
* The Fund commenced selling Institutional shares on February 1, 1993. Any
shares outstanding prior to February 1, 1993 were designated the Retail
Class (now Investor shares).
** The Fund commenced selling Trust shares on April 4, 1994. Effective
October 17, 1994 the Trust shares were reclassified as Class R shares.
</TABLE>
31
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
................................................................................
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 securities of 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.
7. LINE OF CREDIT
The Fund and several affiliated entities participate in a $20 million line of
credit provided by Bank of America (formerly Continental Bank N.A.) under a
Line of Credit Agreement (the "Agreement") dated March 31, 1992, primarily
for temporary or emergency purposes, including the meeting of redemption
requests that otherwise might require the untimely disposition of securities.
Under the Agreement, the Fund may borrow up to the amount specified in its
Borrowing Base Certificate. Interest is payable either at the bank's Money
Market Rate or the London Interbank Offered Rate (LIBOR) plus .375% on an
annualized basis. The Fund and the other affiliated entities are charged an
aggregate commitment fee of $50,000, which is allocated equally among each of
the participants. The Agreement requires, among other provisions, each
participating fund to maintain a ratio of net assets (not including funds
borrowed pursuant to the Agreement) to aggregate amount of indebtedness
pursuant to the Agreement of no less than 4 to 1. During the year ended
December 31, 1994, the Fund did not borrow under the Agreement.
32
................................................................................
<PAGE>
INDEPENDENT AUDITORS' REPORT
................................................................................
[KMPG LOGO]
The Board of Trustees and Shareholders
The Dreyfus/Laurel Funds Trust
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments of the Dreyfus Core Value Fund
(formerly the Capital Appreciation Fund) of The Dreyfus/Laurel Funds Trust
(formerly The Boston Company Fund) as of December 31, 1994, and the related
statement of operations and statement of changes in net assets for the year
then ended and financial highlights for the year then ended for Investor
Class and Institutional Class shares and for the period from August 4, 1994
(date of initial public investment) to December 31, 1994 for Class R shares.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit. The
statement of changes in net assets for the year ended December 31, 1993 and
financial highlights for each of the years or periods in the nine-year period
ended December 31, 1993 were audited by other auditors whose report thereon,
dated February 14, 1994, expressed an unqualified opinion on that statement
and those financial highlights.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation
of securities owned as of December 31, 1994, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Dreyfus Core Value Fund of The Dreyfus/Laurel Funds Trust, as of December 31,
1994, the results of its operations, the changes in its net assets and the
financial highlights for the year or period then ended, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick
LLP
Pittsburgh, Pennsylvania
February 17, 1995
33
................................................................................
<PAGE>
TAX INFORMATION (UNAUDITED)
................................................................................
DREYFUS CORE VALUE
FISCAL YEAR ENDED DECEMBER 31, 1994
The amount of long-term capital gains paid by the Fund for the fiscal year
ended December 31, 1994 was $31,634,195.
Of the distributions made by the Fund, during the fiscal year ended December
31, 1994, 46.75% qualify for the dividends-received deduction available to
corporate shareholders.
34
................................................................................
<PAGE>
FOR MORE INFORMATION ON YOUR FUND, INCLUDING:
- - General Fund Information - 9:00 a.m. to 5:00 p.m. Monday through Friday.
- - Additional Prospectuses - 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.
CALL 1-800-548-2868
Or write:
The Dreyfus Family of Funds
P.O. Box 9692
Providence, RI 02940-9830
Further information is contained
in the Prospectus, which must
precede or accompany this report.
The Funds are distributed by:
Premier Mutual Fund Services, Inc.
One Exchange Place 10th floor
Boston, MA 02109 CORE 1395
<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 1-800-548-2868
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 Funds are distributed by:
Premier Mutual Fund Services, Inc.
One Exchange Place 10th floor
Boston, MA 02109 312/392AR94
