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 performance and portfolio information
for the Premier Limited Term Government Securities 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 Intermediate Term Government Securities Fund is now known, and pub-
licly listed, as the Premier Limited Term Government Securities Fund.
Please be assured that the new name does not affect the value of your ac-
count nor the investment objective or strategy of your Fund.
On December 19, 1994, the Fund, which is now part of The Premier Family of
Funds, a group of funds within The Dreyfus Family of Funds that are sold
primarily through financial professionals, adopted a new sales load struc-
ture consisting of four classes of shares. Class A Shares (formerly Inves-
tor Shares) are now subject to a maximum front-end sales load of 3.0%. In
addition, the Fund began offering Class B and Class C Shares which are
subject to a maximum contingent deferred sales charge of 3.0% and .75% if
shares are redeemed within five years or one year of purchase, respec-
tively. There was no change to Class R Shares (formerly Trust Shares). If
you were a Class A shareholder of the Fund prior to the implementation of
the new multi-class structure, you will continue to be exempt from all
front- end sales loads when continuing to invest and reinvest in addi-
tional Class A shares of the same Fund account. However, any new purchase
of, or any exchange into, shares of another Fund account or of other Pre-
mier Funds will not be exempt from the sales loads that apply to each such
purchase or exchange.
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 your Fund, which is now part of The Premier Family of
Funds, 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 Limited Term Government Securities Fund
February 17, 1995
TABLE OF CONTENTS
Shareholder Letter .......................... 1
Economic Review ............................. 3
Portfolio Overview .......................... 4
Performance Summary ........................ 5
Portfolio of Investments .................... 6
Statement of Assets and Liabilities ........ 8
Statement of Operations ..................... 9
Statement of Changes in Net Assets ......... 10
Financial Highlights ........................ 11
Notes to Financial Statements ............... 15
Independent Auditors' Report ............... 21
Tax Information ............................ 22
ECONOMIC REVIEW
THE ECONOMY MARCHES ON/ECONOMIC STRENGTH CONTINUES
Following several years of stop-and-start recovery, the U.S. economy fi-
nally established a steady pace of expansion early in 1994. Report after
government report brought confirming evidence. New orders for manufactur-
ing, housing starts and sales, and even consumer spending all went up. At
the same time, unemployment fell to its lowest level in nearly four years.
RISING INTEREST RATES DOMINATED THE MARKET
The robust economy raised the inflationary antennae of the Federal Reserve
Board. Determined to head off any price pressures that might be building
along with the economy's strength, the Fed raised short-term interest
rates six times between February and November, 1994. These moves repre-
sented a definitive shift away from the Fed's previous "easy" policy and
ended a nearly 5-year period of declining short-term rates.
The Fed acted in a preemptory fashion -- actual inflation had not yet ap-
peared, although the economy seemed to be growing a bit too rapidly for
comfort. Later in the year, producer prices did begin to rise. The Fed was
concerned that these price increases would eventually flow through to the
consumer level unless it raised interest rates again. Recoveries in for-
eign markets pose yet another challenge for the Fed, since their growth
creates demand for U.S. goods and services which puts inflationary pres-
sures on our economy.
BOND PRICES DECLINED
Financial markets, especially the bond market, had trouble adjusting to
higher interest rates. In line with the Fed's actions, other interest
rates rose and prices of lower yielding bonds fell in order to bring their
yields in line with those of comparable new issues. Investors had been en-
joying exceptional returns during the past two years of declining rates as
the bond market had continued to rally. This new rising rate environment
dealt investor confidence a heavy blow, especially since people did not
know when rates would level off and some stability would return to the
market. Many investors sold off their bond holdings. The U.S. mortgage se-
curities market was particularly hard hit, as were bond markets in many
emerging countries. High yield bond prices held up best, because the for-
tunes of these issues are tied more closely to the economy than to changes
in interest rates.
RATES MAY CONTINUE TO RISE
In assessing the outlook for the bond market, we evaluate four main fac-
tors: the state of the business cycle, prospects for inflation, the direc-
tion of foreign interest rates, and the policy of the Federal Reserve
Board. Presently, three of these factors suggest the possibility of higher
interest rates ahead. The business cycle, or economy, remains strong and
this puts pressure on rates. Foreign interest rates are rising, another
pressure on U.S. rates. And the Fed is now pursuing a tighter monetary
policy, emphasizing its willingness to raise rates to stop inflation. The
lone positive for stabilizing rates is inflation itself. Inflation is
still low and although it may rise somewhat during 1995 as higher producer
prices flow through to the consumer level, it should remain low in rela-
tion to prevailing interest rates. In sum, we believe that the trend seems
to be toward higher interest rates, although a slowing economy or other
developments could certainly alter this outlook.
PORTFOLIO OVERVIEW
Like most bond funds investing primarily in government securities, the
Fund felt the effects of the bond market's severe downturn during the most
recent annual period. The Fund's total return was (4.24)% for Class A
shares* for the twelve months ended December 31, 1994.
The Fund's performance was hurt by its investments in intermediate term
securities. The Fund's investment policy requires that it invest at least
65% of its assets in U.S. Government securities with remaining maturities
of between three and eight years. Unfortunately, the intermediate portion
of the market was the hardest hit by interest rate increases, as yields
rose higher and prices dropped more severely than in other sectors. Still,
significant holdings (20% of assets through October) in cash and short-
term securities did provide the Fund with a measure of protection against
price volatility. In addition, we also invested approximately 15% of the
Fund's government securities allocation in issues with longer, 10-year ma-
turities.
Looking forward, we have begun to invest some of the Fund's cash in
shorter-term government securities with maturities between three and five
years. These securities have gained value from the flattening of the yield
curve, whereby the gap between short-term and long-term interest rates has
begun to close. In the months ahead, we will continue to evaluate opportu-
nities throughout the government securities market. While short-term in-
terest rates may continue to rise, we believe it is time to seek to take
advantage of attractive values and begin reinvesting cash in the Fund's
primary market of intermediate- term government securities.
* Does not reflect the maximum front-end sales load of 3.0%.
PERFORMANCE SUMMARY
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND (UNAUDITED)
CHANGE IN VALUE OF $10,000 INVESTED FROM MARCH 3, 1986 TO DECEMBER 31,
1994+
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS A)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term Government Securities Fund Class A shares on March 3,
1986 through December 31, 1994 as compared with the growth of a $10,000
investment in Lehman Brothers Intermediate Term Government Bond Index. The
plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000
INVESTMENT IN THE
LEHMAN BROTHERS
GROWTH OF $10,000 INTERMEDIATE TERM
MONTH INVESTED IN CLASS A GOVERNMENT
ENDED SHARES OF THE FUND BOND INDEX
<S> <C> <C>
2/86 -- $10,000
3/3/86 $ 9,700 --
3/86 -- $10,269
6/86 $ 9,847 $10,450
9/86 $10,135 $10,710
12/86 $10,514 $10,977
3/87 $10,689 $11,107
6/87 $10,404 $11,015
9/87 $10,152 $10,873
12/87 $10,621 $11,373
3/88 $10,966 $11,729
6/88 $11,022 $11,843
9/88 $11,217 $12,028
12/88 $11,285 $12,101
3/89 $11,329 $12,226
6/89 $12,120 $13,038
9/89 $12,233 $13,186
12/89 $12,513 $13,636
3/90 $12,426 $13,618
6/90 $12,765 $14,044
9/90 $12,924 $14,315
12/90 $13,425 $14,937
3/91 $13,666 $15,266
6/91 $13,832 $15,522
9/91 $14,527 $16,260
12/91 $15,239 $17,042
3/92 $14,934 $16,863
6/92 $15,480 $17,517
9/92 $16,221 $18,284
12/92 $16,072 $18,224
3/93 $16,764 $18,906
6/93 $17,198 $19,278
9/93 $17,675 $19,684
12/93 $17,534 $19,713
3/94 $17,130 $19,349
6/94 $16,748 $19,241
9/94 $16,871 $19,387
12/94 $16,791 $19,367
</TABLE>
AVERAGE ANNUAL TOTAL RETURN -- CLASS A SHARES (FORMERLY RETAIL SHARES)
<TABLE>
<CAPTION>
WITH 3.0% WITHOUT
SALES CHARGE SALES CHARGE
<S> <C> <C>
Year Ended 12/31/94 (7.11)% (4.24)%
Five Years Ended 12/31/94 5.41% 6.06%
Inception (3/3/86) through 12/31/94 6.05% 6.41%
<FN>
+ Hypothetical illustration of $10,000 invested in Class A Shares (for-
merly Retail Shares) at inception (March 3, 1986) assuming deduction of
a maximum 3.00% sales charge at the time of investment and reinvestment
of dividends and capital gains at net asset value through December 31,
1994.
The Lehman Brothers Intermediate Term Government Bond Index is comprised
of all publicly issued, non-convertible debt of the U.S. government or
any agency thereof, quasi-federal corporations, and corporate debt guar-
anteed by the U.S. government with a maturity of between one and ten
years.
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 bond 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 divi-
dends or capital gains.
Further information relating to Fund performance, 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>
PORTFOLIO OF INVESTMENTS
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
DECEMBER 31, 1994
<TABLE>
<CAPTION>
PRINCIPAL INTEREST MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
<S> <C> <C> <C> <C>
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 90.8%
U.S. TREASURY NOTES -- 89.8%
$2,000,000 U.S Treasury Notes 3.785% 04/30/95 $ 1,985,520
695,000 U.S Treasury Notes 5.125 03/31/96 675,797
3,000,000 U.S Treasury Notes 6.875 03/31/97 2,946,330
4,000,000 U.S Treasury Notes 5.125 03/31/98 3,695,760
2,000,000 U.S Treasury Notes 5.875 03/31/99 1,859,400
650,000 U.S Treasury Notes 5.500 04/15/00 586,177
4,100,000 U.S Treasury Notes 8.000 05/15/01 4,133,743
15,882,727
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 1.0%
166,948 Small Business Administration 9.375 04/25/03 171,956
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost $16,640,053) 16,054,683
MORTGAGE-BACKED SECURITIES -- 7.8%
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(GNMA) CERTIFICATES -- 5.7%
11,600 GNMA 9.000 02/15/19 11,721
430,737 GNMA 9.000 02/15/20 435,196
233,750 GNMA 9.000 09/15/21 236,120
79,392 GNMA 9.500 10/15/09 81,891
78,705 GNMA 10.000 05/15/19 82,591
34,270 GNMA 10.500 02/15/14 36,459
46,052 GNMA 11.500 12/15/15 50,266
71,909 GNMA 10.500 04/15/16 76,515
1,010,759
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(FNMA) CERTIFICATES -- 1.5%
450,000 FNMA, Remic Series
92-12SA (I/O) 5.351(1) 01/25/22 270,563
FEDERAL HOME LOAN MORTGAGE CORPORATION
(FHLMC) CERTIFICATES -- 0.6%
6,655 FHLMC, (Group #17-0147) 11.000% 11/01/15 7,093
11,272 FHLMC, Series 1220B (I/O) 435.888(2) 02/15/22 90,172
97,265
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $1,592,895) 1,378,587
TOTAL INVESTMENTS (Cost $18,232,948*) 98.6% 17,433,270
OTHER ASSETS AND LIABILITIES (NET) 1.4 251,580
NET ASSETS 100.0% $17,684,850
<FN>
* Aggregate cost for Federal tax purposes.
(1) Current yield: 10.500% (unaudited).
(2) Current yield: 12.000% (unaudited).
I/O Interest Only Security.
</TABLE>
See Notes to Financial Statements.
STATEMENT OF ASSETS AND LIABILITIES
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
<TABLE>
<S> <C> <C>
ASSETS
Investments, at value (Cost $18,232,948) (Note 1)
See accompanying schedule $17,433,270
Cash 80,681
Interest receivable 220,687
Receivable for investment securities sold 203
TOTAL ASSETS 17,734,841
LIABILITIES
Payable for Fund shares redeemed $20,600
Investment management fee payable (Note 2) 10,186
Dividends payable 7,444
Accrued Trustee' fees and expenses (Note 2) 1,555
Distribution fee payable (Note 3) 483
Accrued expenses and other payables 9,723
TOTAL LIABILITIES 49,991
NET ASSETS $17,684,850
NET ASSETS consist of:
Undistributed net investment income $ 2,388
Accumulated net realized loss on investments sold (194,181)
Unrealized depreciation of investments (799,678)
Paid-in capital 18,676,321
TOTAL NET ASSETS $17,684,850
NET ASSET VALUE:
CLASS A SHARES
Net asset value and redemption price per share
($17,684,805 / 1,487,628 shares of beneficial in-
terest outstanding) $ 11.89
Maximum offering price per share ($11.89 / .97)
(based on sales charge of 3.0% of the offering
price at December 31, 1994) $ 12.26
CLASS B SHARES
Net asset value and offering price per share+
($14.97 / 1.259 shares of beneficial interest out-
standing) $ 11.89
CLASS C SHARES
Net asset value and offering price per share+
($14.97 / 1.259 shares of beneficial interest out-
standing) $ 11.89
CLASS R SHARES
Net asset value, offering and redemption price per
share ($14.46 / 1.216 shares of beneficial inter-
est outstanding) $ 11.89
<FN>
+ Redemption price per share is equal to Net Asset Value less any applica-
ble contingent deferred sales charge.
</TABLE>
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest $ 1,321,025
EXPENSES
Investment management fee (Note 2) $ 82,964
Investment advisory fee (Note 2) 36,993
Distribution fee (Note 3) 36,694
Registration and filing fees 21,830
Transfer agent fees (Note 2) 13,330
Custodian fees (Note 2) 4,448
Trustees' fees and expenses (Note 2) 2,383
Other 14,777
Fees waived and expenses reimbursed by invest-
ment adviser (Note 2) (14,827)
TOTAL EXPENSES 198,592
NET INVESTMENT INCOME 1,122,433
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
(Notes 1 and 4):
Net realized loss on investments sold during
the year (183,515)
Net change in unrealized depreciation of in-
vestments during the year (1,875,149)
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS (2,058,664)
NET DECREASE IN NET ASSETS RESULTING FROM OPER-
ATIONS $ (936,231)
</TABLE>
See Notes to Financial Statements.
STATEMENT OF CHANGES IN NET ASSETS
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
12/31/94 12/31/93
<S> <C> <C>
Net investment income $ 1,122,433 $ 1,270,147
Net realized gain/(loss) on investments sold
during the year (183,515) 526,000
Net unrealized appreciation/(depreciation) on
investments during the year (1,875,149) 228,960
Net increase/(decrease) in net assets resulting
from operations (936,231) 2,025,107
Distributions to shareholders from net invest-
ment income:
Class A (formerly Retail Class) (942,903) (598,477)
Institutional Class (179,530) (671,695)
Distributions to shareholders from net realized
gain on investments:
Class A (formerly Retail Class) -- (16,054)
Institutional Class -- (26,018)
Distributions to shareholders in excess of net
realized gain on investments:
Class A (formerly Retail Class) -- (868)
Institutional Class -- (1,406)
Net increase in net assets from Fund share
transactions (Note 5):
Class A (formerly Retail Class) (2,811,350) (14,690,131)
Institutional Class -- 13,620,656
Class B 15 --
Class C 15 --
Class R (formerly Trust Shares) 15 --
Net decrease in net assets (4,869,969) (358,886)
NET ASSETS:
Beginning of year 22,554,819 22,913,705
End of year (including undistributed net in-
vestment income of $2,388 and $14,852, respec-
tively) $17,684,850 $ 22,554,819
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
<TABLE>
<CAPTION>
YEAR
ENDED
12/31/94##
<S> <C>
Net asset value, beginning of year $ 13.14
Income from investment operations:
Net investment income# 0.68
Net realized and unrealized gain/(loss) on in-
vestments (1.23)
Total from investment operations (0.55)
Less distributions:
Dividends from net investment income (0.70)
Distributions from net realized gains on in-
vestments --
Distributions in excess of net realized gains
on investments --
Distributions from capital --
Total Distributions: (0.70)
Net asset value, end of year $ 11.89
Total return+ (4.24)%
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's) $17,685
Ratio of operating expenses to average net as-
sets+++ 1.02%
Ratio of net investment income to average net
assets 5.59 %
Portfolio turnover rate 165%
<FN>
* 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 redes-
ignated Class R shares. The amounts shown for the year ended Decem-
ber 31, 1994 were calculated using the performance of a Retail Share
outstanding from January 1, 1994 to April 3, 1994, and the perfor-
mance 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.
+ Total return represents aggregate total return for the periods indi-
cated and does not reflect any applicable sales charge.
+++ 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 year ended December 31, 1994 would have been 1.09%.
# Net investment income before voluntary waiver of fees and/or reim-
bursement of expenses by the investment adviser for the year ended
December 31, 1994 would have been $0.67.
## 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.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
<TABLE>
<CAPTION>
YEAR YEAR YEAR
ENDED ENDED ENDED
12/31/93 12/31/92 12/31/91
<S> <C> <C> <C>
Net asset value, beginning of year $12.76 $ 12.81 $ 11.99
Income from investment operations:
Net investment income# 0.75 0.72 0.74
Net realized and unrealized gain/(loss) on
investments 0.40 (0.05) 0.82
Total from investment operations 1.15 0.67 1.56
Less distributions:
Dividends from net investment income (0.74) (0.72) (0.74)
Distributions from net realized gains on
investments (0.03) -- --
Distributions in excess of net realized
gains on investments (0.00)** -- --
Distributions from capital -- -- --
Total Distributions: (0.77) (0.72) (0.74)
Net asset value, end of year $13.14 $ 12.76 $ 12.81
Total return+ 9.10% 5.47% 13.51%
Ratios to average net assets/supplemental
data:
Net assets, end of year (in 000's) $8,776 $22,914 $15,797
Ratio of operating expenses to average net
assets+++ 1.40% 1.67% 1.91%
Ratio of net investment income to average
net assets 5.56 % 5.70% 6.09%
Portfolio turnover rate 74% 30% 50%
<FN>
* 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 desig-
nated 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 perfor-
mance 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.
+ Total return represents aggregate total return for the periods indi-
cated and does not reflect any applicable sales charge.
++ Annualized.
+++ Without the voluntary reimbursement of expenses and/or waiver of
fees by the investment adviser and transfer agent, the ratio of ex-
penses to average net assets for the years ended December 31, 1993
and 1987 would have been 1.74%, and 1.57%, respectively, and 1.30%
for the period ended December 31, 1986.
# Net investment income before the voluntary waiver of fees and/or re-
imbursement 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 would have been $0.70, $0.93,
and $0.81, respectively.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
<S> <C> <C> <C> <C>
$ 11.97 $ 11.66 $ 11.75 $ 12.63 $ 12.50
0.81 0.90 0.81 0.99 0.88
0.02 0.33 (0.09) (0.88) 0.13
0.83 1.23 0.72 0.11 1.01
(0.81) (0.91) (0.81) (0.99) (0.88)
-- -- -- -- --
-- -- -- -- --
-- (0.01) -- -- --
(0.81) (0.92) (0.81) (0.99) (0.88)
$ 11.99 $ 11.97 $ 11.66 $ 11.75 $ 12.63
7.29% 10.89% 6.25% 1.01% 8.39%
$15,526 $13,841 $13,759 $13,618 $15,434
1.92% 1.85% 1.63% 1.04% 0.65%++
6.87% 7.61% 6.91% 8.20% 8.21%++
300% 321% 65% 122% 85%
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
FOR AN INSTITUTIONAL CLASS SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
12/31/93*
<S> <C>
Net asset value, beginning of period $ 13.00
Income from investment operations:
Net investment income# 0.66
Net realized and unrealized gain on investments 0.16
Total from investment operations 0.82
Less distributions:
Distributions from net investment income (0.66)
Distributions from net realized gains on investments (0.02)
Distributions in excess of net realized gains
on investments (0.00)**
Total Distributions: (0.68)
Net asset value, end of period $ 13.14
Total return+ 6.58%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $13,779
Ratio of operating expenses to average net assets+++ 1.50%++
Ratio of net investment income to average net assets 5.46%++
Portfolio turnover rate 74%
<FN>
* On February 1 ,1993, the Fund commenced selling Institutional Class
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.
** Amount represents less than $0.01 per share.
+ Total return represents aggregate total return for the period indi-
cated.
++ Annualized.
+++ Without the voluntary reimbursement of expenses and/or waiver of fees
by the investment adviser and distributor, the ratio of expenses to
average net assets for the period ended December 31, 1993 would have
been 1.78%.
# Net investment income before the voluntary waiver of fees and/or reim-
bursement of expenses by the investment adviser for the period ended
December 31, 1993 was $0.63.
</TABLE>
See Notes to Financial Statements.
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 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 man-
agement investment company. On April 4, 1994, the Retail and Institutional
Classes of shares were reclassified as a single class of shares known as
Investor Shares and the Fund began offering Trust Shares. On October 17,
1994, Investor and Trust shares were redesignated as Class A and Class R
shares, respectively. Effective December 19, 1994 the Trust began offering
two additional classes of shares, Class B and Class C. Class A, B and C
shares are sold primarily to retail investors through financial intermedi-
aries and bear a distribution fee. Class A shares are sold with a front-
end sales charge, while Class B and C may be subject to a contingent de-
ferred sales charge. Class R Shares are sold primarily to bank trust de-
partments 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 distri-
bution fee. Each class of shares has identical rights and privileges ex-
cept with respect to the distribution fees and voting rights on matters
affecting a single class. The following is a summary of significant ac-
counting 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, they are
valued at fair value, as determined in good faith by the Board of Trust-
ees. Bonds are valued through valuations obtained from a commercial pric-
ing service or at the most recent mean of the bid and asked prices pro-
vided 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 ap-
proximates 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 in-
come and realized and unrealized gains and losses are allocated based upon
the relative daily net assets of each class of shares.
(C) EXPENSE ALLOCATION
Expenses of the Fund not directly attributable to the operations of any
class of shares are pro rated 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.
(D) DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income of the Fund, if any, are deter-
mined on a class level, are declared each day the Fund is open for busi-
ness and are paid on the first business day of the month. The Fund dis-
tributes any net realized capital gains on a Fund level annually. Distri-
butions 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 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. Permanent differences incurred during the Fund's fiscal
year resulting from different book and tax accounting for certain debt se-
curities have been reclassified from income to capital gains at year-end.
(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 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, reviews 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.
(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 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, TRUSTEES' FEES
AND OTHER RELATED PARTY TRANSACTIONS
Effective as of October 17, 1994, the Trust's investment management agree-
ment 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 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 investment of
the Fund in accordance with its investment objective, policies and limita-
tions. 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 ex-
penses of non-interested Trustees (including counsel fees) and extraordi-
nary 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 in-
vestment advisory agreement under which the Fund paid The Boston Company
Advisors, Inc. ("Boston Advisors"), a wholly-owned subsidiary of Mellon
Bank, a monthly fee at the annual rate of 0.65% of the value of its aver-
age daily net assets. For the year ended December 31, 1994, Boston Advi-
sors, as investment advisor waived fees and reimbursed expenses of
$14,827.
Prior to April 4, 1994, the Trust had individual contracts, which con-
tained specific fee provisions, with Boston Safe Deposit and Trust Com-
pany, a wholly-owned subsidiary of Mellon Bank, and The Shareholder Ser-
vices Group, Inc. to provide custody and transfer agent services, respec-
tively, to the Fund. Effective April 4, 1994, the payment of fees for
custody, accounting and transfer agent services are covered by the invest-
ment 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 distribu-
tion fees, gross class specific operating expenses include transfer agent
fees. For the year ended December 31, 1994, Class A shares incurred trans-
fer agent fees of $13,330.
For the period from April 4, 1994 to September 23, 1994, Frank Russell In-
vestment Management Company (the "Administrator") served as the Fund's ad-
ministrator and provided, pursuant to an administration agreement, various
administrative and corporate secretarial services to the Fund. For the pe-
riod 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 Distribu-
tor, 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 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 affili-
ate thereof) receives any compensation from The Dreyfus/Laurel Funds,
Inc., The Dreyfus/Laurel Funds Trust, The Dreyfus/Laurel Tax-Free Munici-
pal 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 Man-
ager (or of any parent, subsidiary or affiliate thereof) serves as an of-
ficer or Director or Trustee of The Dreyfus/Laurel Funds. The Dreyfus/Lau-
rel 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 Direc-
tor or Trustee for travel and out-of- pocket expenses.
3. DISTRIBUTION PLAN
Class A shares are subject to a distribution plan adopted pursuant to Rule
12b-1 of the 1940 Act. Under this distribution plan the Fund may pay annu-
ally up to 0.25% of the value of the 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 Pre-
mier 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 Distribu-
tion 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 0.50% of the value of the average daily net assets of Class
B and C. 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 providing certain services to the hold-
ers 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. The Class R shares bear
no service or distribution fee. Prior to April 4, 1994, under a distribu-
tion plan, the Fund was authorized to spend up to 0.25% and 0.15%, respec-
tively, of its average daily net assets annually on distribution expenses
for the Retail Class and the Institutional Class which are now reclassi-
fied as Class A (formerly Investor Class) shares.
Under their terms, the Plans 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 per-
sons" 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 long-term U.S. government se-
curities for the year ended December 31, 1994 were $29,380,723 and
$31,700,918, respectively.
At December 31, 1994, aggregate gross unrealized appreciation for all se-
curities 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 $15,499 and $815,177, respectively.
5. SHARES OF BENEFICIAL INTEREST
The Trust has the authority to issue an unlimited number of shares of ben-
eficial interest of each class in each separate series, without par value.
The Trust offers four classes of shares of the Fund.
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED PERIOD ENDED
December 31, 1994** December 31, 1993 December 31, 1993*
(RETAIL CLASS) (INSTITUTIONAL CLASS)
SHARES+ AMOUNT++ SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C> <C> <C>
CLASS A
SHARES:
Sold 671,131 $ 8,436,807 157,285 $ 2,059,475 874,584 $ 11,577,262
Issued as
reinvest-
ment of
dividends
and distri-
butions 83,300 1,029,275 39,912 526,165 51,600 683,184
Redeemed (983,069) (12,277,432) (344,242) (4,520,925) (858,820) (11,394,636)
Exchanged for
Institu-
tional
shares -- -- (981,142) (12,754,846) -- --
Issued in ex-
change for
Retail
shares -- -- -- -- 981,142 12,754,846
Net increase/
(decrease) (228,638) $ (2,811,350) (1,128,187) $(14,690,131) 1,048,506 $ 13,620,656
<FN>
* The Fund commenced selling Institutional Class shares on February 1,
1993. Any shares outstanding prior to February 1, 1993 were designated
Retail Class shares.
** 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.
+ Number of shares includes 257,667 of subscriptions, 12,997 of reinvest-
ments 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.
</TABLE>
As of December 31, 1994, the Fund had issued 1.259 Class B shares, 1.259
Class C shares and 1.216 Class R shares in the amount of $14.97, $14.97
and $14.46, respectively.
6. 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 this 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 enti-
ties 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 as-
sets (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.
7. 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.
INDEPENDENT AUDITORS' REPORT
KPMG
The Board of Trustees and Shareholders
The Dreyfus/Laurel Funds Trust
We have audited the accompanying statement of assets and liabilities, in-
cluding the portfolio of investments of the Premier Limited Term Govern-
ment Securities Fund (formerly the Intermediate Term Government Securities
Fund) of The Dreyfus/Laurel Funds Trust (formerly The Boston Company Fund)
as of December 31, 1994, and the related statement of operations, state-
ment of changes in net assets and financial highlights for the year then
ended. These financial statements and financial highlights are the respon-
sibility 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 peri-
ods in the seven- year period ended December 31, 1993 and for the period
from March 3, 1986 (commencement of operations) to December 31, 1986 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 audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and fi-
nancial highlights are free of material misstatement. An audit also in-
cludes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirma-
tion 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 Premier Limited Term Government Securities Fund of The Dreyfus/Lau-
rel 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
then ended, in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Pittsburgh, Pennsylvania
February 17, 1995
TAX INFORMATION (UNAUDITED)
PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
FISCAL YEAR ENDED, DECEMBER 31, 1994
The amount of long-term capital gain paid for the fiscal year ended Decem-
ber 31, 1994 was $200,357 for the Premier Limited Term Government Securi-
ties Fund.
In accordance with tax law, the Fund has elected to defer the recognition
of losses occurring between October 31 and December 31 until the first day
of the following fiscal year. The amount of such deferral is $19,230 of
capital losses. These losses for tax purposes will be deemed to occur on
January 1, 1995.
The above figures may differ from those cited elsewhere in this report due
to differences in the calculation of income and gains for Securities and
Exchange Commission (book) purposes and Internal Revenue Service (tax)
purposes.
