<PAGE>
Dreyfus
Special Growth
Fund
Annual Report
December 31, 1995
<PAGE>
Dreyfus Special Growth Fund
______________________________________
Letter to Shareholders
Dear Shareholder:
We are pleased to report that the Dreyfus Special Growth Fund provided a
total return of 30.44% for its Investor shares and 30.79% for its Class R
shares for the fiscal year ended December 31, 1995.* These results compare
with a total return of 37.53% for the Standard & Poor's 500 Composite Stock
Price Index and 28.45% for the Russell 2000 Index of small capitalization
stocks for the same time period.** The Dreyfus Special Growth Fund focuses
primarily, though not exclusively, on small company stocks. Thus we use the
Russell 2000 Index as another performance benchmark.
ECONOMIC ENVIRONMENT
The dominant influence on the U.S. economy in 1995 was the policy of the
Federal Reserve Board's Open Market Committee. By deft handling of credit
controls, the Fed managed to keep the U.S. economy growing at a moderate rate
throughout the year.
At the start of 1995, the central bank was still fighting inflation,
culminating a year-long strategy of raising interest rates to prevent
overheating of the economy. This approach appeared to work. The economy began
to slow down, even raising some fear that the Fed might have caused a
recession. Yet by mid-summer, the Fed switched gears, and began a very modest
lowering of interest rates. Its purpose was to maintain the growth of the
economy while keeping inflation at bay.
By fall, certain economic measures indicated that growth was indeed
slowing. Construction activity was cooling off, business inventories were
creeping up, creation of new jobs slowed, and unemployment inched upward.
However, other sectors of the economy remained strong. U.S. merchandise
exports were growing at 15% a year in constant dollars, reflecting the
tremendous competitiveness of U.S. manufacturers on world markets. Fixed
investments by businesses continued to grow. Orders for nondefense capital goo
ds, after a slump in early summer, appeared to be picking up as well.
Additionally, low interest rates sustained a good level of housing sales.
Retail sales were weak in late 1995. The economy was no longer being led
by consumer spending. Yet, a sizable portion of the slowdown in consumer
spending reflected lower retail prices rather than a drop in the number of
transactions. The consumer is very cautious and is looking for bargains, but
still has money to spend _ carefully. To be sure, consumers have taken on a
lot of debt, but their assets generally rose in value, particularly
investment assets. Thus they were in a position to carry more debt.
In December, the Fed lowered interest rates once again, but by a very
small amount. Other steps to reduce interest rates are expected by many
economists in 1996 to deal with a continued slowing of the economy.
MARKET OVERVIEW
For most investors in U.S. equities, 1995 was an extremely successful
year. Both the S&P 500 and the Dow Jones Industrial Average ended the year
with total returns, including the reinvestment of dividends, in excess of
35%, setting numerous records along the way and making 1995 the best year
since 1958 for the S&P 500. The record gains in stock prices were driven by a
multitude of favorable factors including lower interest rates, strong
earnings momentum, corporate restructurings and acquisitions, share
repurchases and record cash inflows to mutual funds.
Fourth quarter gains were slightly less robust than those of the prior
three periods. While the 6.02% return for the S&P is a healthy number
(especially when compared to the 1.31% return for the entire year of 1994),
it masks a substantial amount of turbulence below the surface. The fourth
quarter was marked by a significant rotation within economic sectors, as well
as a shift away from small and medium capitalization companies in favor of
larger capitalization shares.
<PAGE>
The most dramatic change within the economic sectors of the S&P 500 in
recent months was the relative decline of technology. After leading the
market through all of 1994 and the first half of 1995, technology shares as a
group underperformed in the second half of the year. Health care stocks
finished the quarter and the year ahead of all other sectors. Two other
industry groups that lagged the market through the first half of the year
turned in impressive results in the waning months of the year. Energy stocks,
viewed by many investors as good defensive holdings for their liquidity and
above average yields, were strong. The utilities sector, driven by the shares
of telephone companies, outperformed the market in the fourth quarter.
Financial services stocks, though volatile in recent months, finished the
year as the second best performing sector in the S&P 500.
PORTFOLIO FOCUS
Though the broad market, as measured by the S&P 500, was the clear
winner, the Fund outperformed the Russell 2000, which we use as a benchmark
for small capitalization stocks.
A major contributor to the Fund's performance was the portfolio's large
commitment in the energy sector, which performed well in the last three
months of the year. Major energy holdings include Sonat Offshore Drilling and
Global Marine.
On the other hand, the Fund's performance was held back by an
overweighting in the technology sector, which was the market's weakest sector
in the final three months of the year.
The fact that small cap stocks did not do as well as large cap issues was
the result of a number of factors. Investors sought the liquidity of larger
cap issues and shifted money into the brand name Fortune 500 companies,
despite the lackluster earnings prospects of those companies. Another major
phenomenon was the recent receding of the surge in technology issues that had
prevailed over the last two years. Preannounced earnings disappointments,
slowing growth rates and the deceleration in semi-conductor orders resulted
in many technology stocks declining 30% to 50% in value.
As we look forward to 1996, we believe there is evidence of a slowing
U.S. economy and lackluster earnings growth. We believe smaller companies
currently offer more attractive valuations than larger companies. This
valuation gap could be closed over time. We are optimistic about the small
cap market since undervaluation, investor fear, and market volatility create
favorable buying opportunities. We are also optimistic about the prospects
for value stocks compared to growth stocks. Historically, as earnings
deceleration occurs, the lower price-to-earnings stocks that characterize our
investment strategy outperform.
We send you our best wishes for 1996 and look forward to continuing to
serve your investment needs.
Sincerely,
[Guy Scott signature logo]
Guy Scott
Portfolio Manager
January 18, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. _ Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of stock market performance. The Russell 2000 Index is a
widely accepted unmanaged index of small cap stock performance.
<PAGE>
Dreyfus Special Growth Fund December 31, 1995
______________________________________-
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS SPECIAL
GROWTH FUND INVESTOR CLASS SHARES WITH THE STANDARD AND
POOR'S 500 COMPOSITE STOCK PRICE INDEX
[Exhibit A
Dreyfus Special Standard & Poor's
Growth Fund 500 Composite
(Investor Class Stock Price
Shares) Index*
________ ________-
5/3/82 10,000 10,000
12/31/82 13,490 12,545
12/31/83 18,869 15,375
12/31/84 16,775 16,339
12/31/85 22,613 21,524
12/31/86 24,346 25,540
12/31/87 23,418 26,881
12/31/88 28,451 31,332
12/31/89 33,808 41,243
12/31/90 32,170 39,960
12/31/91 41,571 52,108
12/31/92 52,458 56,073
12/31/93 62,954 61,714
12/31/94 51,485 62,523
12/31/95 67,159 85,996
*Source: Lipper Analytical Services, Inc.]
Average Annual Total Returns
_____________________________________-
Investor Class Shares Class R Shares
________________ ________________
Period Ended 12/31/95 Period Ended 12/31/95
________________ ________________
1 Year 30.44% 1 Year 30.79%
5 Years 15.82 From Inception (2/1/93) 7.74
10 Years 11.49
From Inception (5/3/82) 14.95
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Investor Class shares
of Dreyfus Special Growth Fund on 5/3/82 (Inception Date) to a $10,000
investment made in the Standard & Poor's 500 Composite Stock Price Index on
that date. For comparative purposes, the value of the Index on 4/30/82 is
used as the beginning value on 5/3/82. All dividends and capital gain
distributions are reinvested. Performance for Class R shares will vary from
the performance of Investor Class shares shown above due to differences in
charges and expenses.
The Fund's performance shown in the line graph takes into account all
applicable fees and expenses. The Standard & Poor's 500 Composite Stock
Price Index is a widely accepted, unmanaged index of overall stock market
performance, which does not take into account charges, fees and other
expenses. Further information relating to Fund performance, including
expense reimbursements, if applicable, is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
<PAGE>
Dreyfus Special Growth Fund
_______________________________________
Statement of Investments December 31, 1995
<TABLE>
<CAPTION>
Common Stocks_93.2% Shares Value
___________________________________________- ____ ______
<S> <C> <C>
Domestic Common Stocks_84.9%
___________________________________________-
Auto Parts_.1% Capco Automotive ............................... 11,300 $ 80,513
_____-
Basic Industries_2.7% Boise Cascade .................................. 23,000 796,375
Mariah International ........................... 950,000(a) 14,250
Stone Container ................................ 80,000 1,150,000
_____-
1,960,625
_____-
Capital Goods_2.4% General Instrument ............................. 32,000(a) 748,000
Raychem ........................................ 17,000 966,875
_____-
1,714,875
_____-
Consumer Non-durables_6.3% Authentic Fitness .............................. 45,000 933,750
Quiksilver ..................................... 22,000(a) 752,125
Robert Mondavi ................................. 55,000(a) 1,519,375
Seda Speciality Packaging ...................... 104,500(a) 1,293,188
_____-
4,498,438
_____-
Consumer Services_11.2% AirTouch Communications ........................ 51,000(a) 1,440,750
CMG Information Services ....................... 18,000(a) 1,671,750
Comcast, Cl. A ................................. 88,000 1,551,000
Liberty Media Group, Cl. A ..................... 21,781(a) 585,371
Tele-Communications, Cl. A ..................... 77,125(a) 1,532,859
Vanguard Cellular Systems ...................... 61,500(a) 1,245,375
_____-
8,027,105
_____-
Energy_26.2% Apache ......................................... 40,000 1,180,000
Global Marine .................................. 497,000(a) 4,348,750
Reading & Bates ................................ 120,000(a) 1,800,000
Seagull Energy ................................. 41,000(a) 912,250
Sonat Offshore Drilling ........................ 90,000 4,027,500
Triton Energy .................................. 26,000 1,491,750
Varco International ............................ 207,500(a) 2,490,000
Weatherford International ...................... 85,750(a) 2,476,031
_____-
18,726,281
_____-
Financial Services_4.4% MGIC Investment ................................ 34,000 1,844,500
Vesta Insurance Group .......................... 24,000 1,308,000
_____-
3,152,500
_____-
Health Care_11.6% Amgen .......................................... 42,000(a) 2,493,750
BioChem Pharma ................................. 57,000(a) 2,287,125
Genesis Health Ventures ........................ 24,000(a) 876,000
Genzyme General Division ....................... 26,000(a) 1,621,750
Genzyme Tissue Repair........................... 9,990(a) 158,591
Nellcor Puritan Bennett ........................ 15,000(a) 870,000
_____-
8,307,216
_____-
</TABLE>
<PAGE>
Dreyfus Special Growth Fund
_______________________________________
Statement of Investments (continued) December 31, 1995
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
___________________________________________- ____ ______
<S> <C> <C>
Technology_15.1% ANADIGICS ...................................... 28,000(a) $ 595,000
Alpha Industries ............................... 43,000(a) 607,375
Aspen Technology ............................... 25,000(a) 843,750
FTP Software ................................... 24,000(a) 696,000
INSO ........................................... 19,000(a) 807,500
McAfee Associates .............................. 45,000(a) 1,974,375
Myriad ......................................... 14,000(a) 456,750
Read-Rite ...................................... 30,000(a) 697,500
Softkey International .......................... 43,000(a) 994,375
Spyglass ....................................... 21,200(a) 1,208,400
Symantec ....................................... 57,000(a) 1,325,250
TSL Holdings ................................... 10(a) 0
TriQuint Semiconductor ......................... 45,000(a) 607,500
_____-
10,813,775
_____-
Transportation_4.9% AMR ............................................ 15,000(a) 1,113,750
Delta Air Lines................................. 19,000 1,403,625
Southwest Airlines.............................. 43,000 999,750
_____-
3,517,125
_____-
Total Domestic Common Stocks.................... 60,798,453
======
Foreign Common Stocks_8.3%
___________________________________________-
Argentina_.4% Central Costanera, Cl. B........................ 12,000 36,956
Telecom Argentina STET.......................... 23,000 108,549
Telefonica De Argentina S.A..................... 42,000 113,389
YPF Sociedad Anonima............................ 2,500 54,063
_____-
312,957
_____-
Bermuda_3.4% Mid Ocean....................................... 36,000 1,336,500
Partnerre Holdings.............................. 40,000 1,100,000
_____-
2,436,500
_____-
Brazil_.5% Aracruz Celulose, S.A........................... 7,200 55,800
Compania Energentina De Minas Gerais............ 4,200(a) 92,662
Refrigeracao Parana S.A......................... 8,000 88,500
Telecomunicacoes Brasileiras S.A................ 3,000 142,125
_____-
379,087
_____-
Chile_.3% Compania De Telecomucicaciones.................. 1,000 82,875
Cristalerias De Chille S.A...................... 4,400 97,900
_____-
180,775
_____-
Finland_.1% Nokia AB........................................ 1,500 59,208
_____-
Hong Kong_.5% Ek Chor China Motorcycle........................ 5,000 58,125
HSBC Holdings................................... 6,000 90,785
Hong Kong & Shanghai Hotels..................... 80,000 115,875
Yue Yuen Industrial............................. 346,000 91,730
_____-
356,515
_____-
</TABLE>
<PAGE>
Dreyfus Special Growth Fund
_______________________________________
Statement of Investments (continued) December 31, 1995
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
___________________________________________- ____ ______
<S> <C> <C>
Hungary_.1% MOL Mahyar Olaj-ES Gazipari..................... 5,000 $ 41,000
_____-
Indonesia_.2% H.M. Sampoerna.................................. 12,500 130,197
_____-
Malaysia_1.0% AMMB Holdings Berhad............................ 10,000 114,218
Affin Holdings Berhad........................... 45,000 86,845
Crest Petroleum................................. 20,000(a) 39,071
Leader Universal Holdings Berhad................ 30,000 68,531
Malayan Banking Berhad.......................... 10,000 84,285
Pacific & Orient Berhad......................... 13,000(a) 40,961
Telekom Malaysia Berhad......................... 12,000 93,580
United Engineers................................ 25,000 159,512
_____-
687,003
_____-
Mexico_.5% ALFA............................................ 4,500 57,874
Fomento Economico Mexicano...................... 25,000 56,567
Tablex S.A...................................... 40,000(a) 59,818
Telefonos de Mexico, Series L................... 3,000 95,625
Transportacion Maritima......................... 14,800(a) 123,950
_____-
393,834
_____-
Portugal_.1% Portucel Industrial............................. 12,000(a) 70,847
_____-
Singapore_.4% Far East Levingston Ship Building............... 30,000 141,089
Overseas Union Bank............................. 16,000 110,325
_____-
251,414
_____-
South Africa_.1% Barlow LTD...................................... 4,000 57,000
_____-
Thailand_.7% Advanced Information Services................... 9,000 157,921
Bangkok Bank Public............................. 10,000 121,477
Srithai Superware............................... 12,000 80,031
Telecomasia..................................... 2,000(a,b) 60,250
Thai Telephone & Telecommuncation............... 10,000(a) 55,358
_____-
475,037
_____-
Total Foreign Common Stocks..................... 5,831,374
======
TOTAL COMMON STOCKS
(cost $53,903,013)............................ $66,629,827
======
Foreign Preferred Stocks_.3%
___________________________________________-
Brazil_.1% Ceval Alimentos S.A............................. 7,500 $ 85,781
_____-
Philippines_.2% Philippine Long Distance Telecommunications..... 2,000 104,125
_____-
TOTAL FOREIGN PREFERRED STOCKS
(cost $201,313)............................... $ 189,906
======
</TABLE>
<PAGE>
Dreyfus Special Growth Fund
_______________________________________
Statement of Investments (continued) December 31, 1995
<TABLE>
<CAPTION>
Warrants_.5% Shares Value
___________________________________________- ____ ______
<S> <C> <C>
Ann Taylor Stores
(cost $472,700)............................... 145,000(a) $ 326,250
======
<CAPTION>
Principal
Convertible Foreign Bonds_.0% Amount
___________________________________________- _____
<S> <C> <C>
Malaysia; AMMB Holdings Berhab
(cost $3,901)................................. $ 10,000 $ 5,317
======
Short-Term Investments_5.4%
___________________________________________-
Commercial Paper: General Electric Capital Corporation,
5.85% due 1/2/96.............................. $ 339,000 $ 339,000
Ford Motor Credit Corporation,
6% due 1/2/96................................. 3,561,000 3,561,000
_____-
TOTAL SHORT-TERM INVESTMENTS
(cost $3,900,000)............................. $ 3,900,000
======
TOTAL INVESTMENTS (cost $58,480,927)................................................... 99.4% $71,051,300
===== ======
CASH AND RECEIVABLES (NET)............................................................. .6% $ 463,828
===== ======
NET ASSETS ............................................................................ 100.0% $71,515,128
===== ======
</TABLE>
Notes to Statement of Investments:
______________________________________-
(a) Non-income producing.
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31,
1995, this security amounted to $60,250 or approximately .1% of net assets.
See notes to financial statements.
<PAGE>
Dreyfus Special Growth Fund
______________________________________
Statement of Assets and Liabilities December 31, 1995
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value (cost $58,480,927)_see Statement
of Investments........................................................ $71,051,300
Cash and foreign curency (cost $338,182)................................ 336,463
Receivable for shares of Beneficial Interest subscribed................. 172,500
Receivable for investment securities sold............................... 103,282
Dividends and interest receivable....................................... 13,512
_____-
71,677,057
LIABILITIES:
Due to The Dreyfus Corporation_Note 2(a)............................... $140,529
Due to Distributor_Note 2(b)........................................... 14,299
Payable for investment securities purchased............................. 1,020
Trustees' fees payable_Note 2(c)....................................... 6,081 161,929
____ _____-
NET ASSETS.................................................................. $71,515,128
======
REPRESENTED BY:
Paid-in capital......................................................... $58,571,749
Accumulated investment (loss)........................................... (397,865)
Accumulated undistributed net realized gain on investments.............. 772,324
Accumulated net unrealized appreciation on investments and
foreign currency transactions......................................... 12,568,920
_____-
NET ASSETS at value......................................................... $71,515,128
======
NET ASSET VALUE, offering and redemption price per share:
Investor Shares
unlimited number of shares of Beneficial Interest
($66,201,183 / 3,464,089 shares of Beneficial Interest outstanding)..... $19.11
======
Class R Shares
unlimited number of shares of Beneficial Interest
($5,313,945 / 274,849 shares of Beneficial Interest outstanding)........ $19.33
======
</TABLE>
Statement of Operations Year ended December 31, 1995
<TABLE>
<S> <C> <C>
INVESTMENT (LOSS):
Income:
Interest.............................................................. $ 302,308
Cash dividends (net of $12,623 foreign taxes withheld at source)...... 296,496
_____
Total Income...................................................... $ 598,804
Expenses:
Investment management fee_Note 2(a).................................. 824,186
Distribution fee (Investor shares)_Note 2(b)......................... 165,253
Trustees' fees and expenses_Note 2(c)................................ 7,230
_____
Total Expenses.................................................... 996,669
_____-
INVESTMENT (LOSS)................................................. (397,865)
_____-
REALIZED AND UNREALIZED GAIN ON INVESTMENTS-Note 3:
Net realized gain on investments and foreign currency transactions...... $1,509,827
Net realized gain on forward currency exchange contracts................ 10,979
_____
Net Realized Gain..................................................... 1,520,806
Net unrealized appreciation on investments and foreign
currency transactions................................................. 18,222,938
_____-
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 19,743,744
_____-
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $19,345,879
======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Special Growth Fund
______________________________________
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended December 31,
_______________-
1995 1994
______ ______
<S> <C> <C>
OPERATIONS:
Investment (loss).................................................... $ (397,865) $ (440,961)
Net realized gain (loss) on investments.............................. 1,520,806 (633,633)
Net unrealized appreciation (depreciation) on investments for the year 18,222,938 (18,173,370)
______ ______
Net Increase (Decrease) In Net Assets Resulting From Operations.... 19,345,879 (19,247,964)
______ ______
DIVIDENDS TO SHAREHOLDERS FROM:
From net realized gain on investments:
Investor Shares.................................................... _ (228,089)
Class R Shares..................................................... _ (28,254)
In excess of net realized gain on investments:
Investor Shares.................................................... _ (184)
Class R Shares..................................................... _ (23)
______ ______
Total Dividends.................................................. _ (256,550)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:(1,2)
Net proceeds from shares sold:
Investor Shares.................................................... 27,132,927 32,031,183
Class R Shares..................................................... 2,905,819 1,390,092
Dividends reinvested:
Investor Shares.................................................... _ 217,665
Class R Shares..................................................... _ 25,347
Cost of shares redeemed:
Investor Shares.................................................... (43,483,029) (53,882,803)
Class R Shares..................................................... (6,009,549) (7,223,159)
______ ______
(Decrease) In Net Assets From Beneficial Interest Transactions... (19,453,832) (27,441,675)
______ ______
Total (Decrease) In Net Assets................................. (107,953) (46,946,189)
NET ASSETS:
Beginning of year.................................................... 71,623,081 118,569,270
______ ______
End of year [including accumulated investment income (loss);
($397,865) in 1995]................................................ $ 71,515,128 $ 71,623,081
====== ======
</TABLE>
<TABLE>
<CAPTION>
Shares(1)
__________________________________________________________________
Investor Shares Class R Shares
Year Ended December 31, Year Ended December 31,
_______________ _____________
1995 1994(3) 1995 1994
_____ _____ ____ ____
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold......................... 1,584,544 1,941,895 168,019 82,480
Shares issued for dividends reinvested _ 14,090 _ 1,624
Shares redeemed..................... (2,544,847) (3,294,041) (352,040) (452,409)
_____ _____ ____ ____
Net (Decrease) In Shares Outstanding (960,303) (1,338,056) (184,021) (368,305)
===== ===== ==== ====
<FN>
_______-
(1) Effective April 4, 1994, the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor Shares and
the Investment Class shares were reclassified as Trust shares and effective
October 17, 1994, the Trust Shares were reclassified as Class R shares.
(2) Amounts include 2,791,543 of subscriptions and 8,392,173 of redemptions
for the Institutional Class up to April 4, 1994.
(3) Number of shares includes 157,588 of subscriptions and 477,271 of
redemptions for the Institutional Class up to April 4, 1994.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Special Growth Fund
______________________________________
Financial Highlights
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Investor Shares
__________________________________________________________
Year Ended December 31,
__________________________________________________________
PER SHARE DATA: 1995 1994(1)(2) 1993(1)(3) 1992(1) 1991(1)
___ _____ _____ ___- ___-
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year................ $14.65 $17.97 $16.45 $14.59 $13.56
___ ___ ___ ___ ___
Investment Operations:
Investment (loss)(4).............................. (.11) (.09) (.20) (.10) (.05)
Net realized and unrealized gain (loss) on
investments..................................... 4.57 (3.18) 3.51 3.77 3.90
___ ___ ___ ___ ___
Total from Investment Operations................ 4.46 (3.27) 3.31 3.67 3.85
___ ___ ___ ___ ___
Distributions:
Dividends in excess of investment income_net..... _ _ _ (.19) _
Dividends from net realized gain on investments... _ (.05) (1.79) (1.62) (2.82)
Dividends in excess of net realized gain on
investments..................................... _ (.00)(5) _ _ _
___ ___ ___ ___ ___
Total Distributions............................. _ (.05) (1.79) (1.81) (2.82)
___ ___ ___ ___ ___
Net asset value, end of year...................... $19.11 $14.65 $17.97 $16.45 $14.59
=== === === === ===
TOTAL INVESTMENT RETURN............................... 30.44% (18.22%) 20.01% 26.19% 29.22%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(6)........ 1.40% 1.42% 1.73% 1.57% 1.70%
Ratio of net investment (loss) to average
net assets...................................... (.57%) (.51%) (1.09%) (.71%) (.34%)
Portfolio Turnover Rate........................... 68.91% 133.00% 94.00% 112.00% 141.00%
Net Assets, end of year (000's Omitted)........... $66,201 $64,839 $83,879 $64,071 $41,522
<FN>
______-
(1) On February 1, 1993 exisiting shares of the Fund were designated the
Retail Class and the Fund began offering the Institutional Class and the
Investment Class of shares. Effective April 4, 1994 the Retail and
Institutional Classes were reclassified as a single class of shares known
as Investor Shares. The amounts shown for the year ended December 31,
1994 were calculated using the performance of a Retail Class share
outstanding from January 1, 1994 to April 3, 1994, and the performance of
an Investor Share outstanding from April 4, 1994 to December 31, 1994.
The Financial Highlights for the year ended December 31, 1993 and prior
years are based upon a Retail Class share outstanding.
(2) Prior to April 4, 1994, The Boston Company Advisors, Inc. served as the
Fund's investment adviser. From April 4, 1994 through October 16, 1994,
Mellon Bank, N.A. served as the Fund's investment manager. Effective
October 17, 1994, The Dreyfus Corporation serves as the Fund's
investment manager.
(3) Per share amounts have been calculated using the monthly average share
method.
(4) Without the voluntary waiver of fees and/or reimbursement of expenses by
the investment adviser, net investment loss for the year ended December 31,
1993 would have been ($.21).
(5) Amount represents less than $.01 per share.
(6) Without voluntary reimbursement of expenses and/or waiver of fees by the
investment adviser, the annualized ratio of expenses to average net assets
for the year ended December 31, 1993 would have been 1.79%.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Special Growth Fund
______________________________________
Financial Highlights (continued)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Class R Shares
______________________-______________________-
Year Ended December 31, Period Ended
__________________________ December 31,
PER SHARE DATA: 1995 1994(1)(2) 1993(1)(3)
___ _____ ______
<S> <C> <C> <C>
Net asset value, beginning of year......................... $14.78 $18.06 $17.31
___ ___ ___
Investment Operations:
Investment income gain (loss)_net(4)...................... .03 (.02) (.10)
Net realized and unrealized gain (loss) on investments..... 4.52 (3.21) 2.64
___ ___ ___
Total from Investment Operations......................... 4.55 (3.23) 2.54
___ ___ ___
Distributions:
Dividends from net realized gain on investments............ _ (.05) (1.79)
Dividends in excess of net realized gain on investments.... _ (.00)(5) _
___ ___ ___
Total Distributions...................................... _ (.05) (1.79)
___ ___ ___
Net asset value, end of year............................... $19.33 $14.78 $18.06
=== === ===
TOTAL INVESTMENT RETURN........................................ 30.79% (17.91%) 15.78%(6)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(7)................. 1.15% 1.15% 1.19%(8)
Ratio of net investment (loss) to average net assets....... (.31%) (.24%) (.55%)(8)
Portfolio Turnover Rate.................................... 68.91% 133.00% 94.00%
Net Assets, end of year (000's Omitted).................... $5,314 $6,784 $14,941
<FN>
______-
(1) On February 1, 1993, the Fund commenced selling Investment Class shares.
Effective April 4, 1994 the Investment Class shares were reclassified as
Trust shares and on October 17, 1994 were reclassified as Class R shares.
(2) Prior to April 4, 1994, The Boston Company Advisors, Inc. served as the
Fund's investment adviser. From April 4, 1994 through October 16, 1994,
Mellon Bank, N.A. served as the Fund's investment manager. Effective
October 17, 1994, The Dreyfus Corporation serves as the Fund's
investment manager.
(3) Per share amounts have been calculated using the monthly average share
method.
(4) Without the voluntary waiver of fees and/or reimbursement of expenses by
the investment adviser, net investment loss for the period ended December
31, 1993 would have been ($.11).
(5) Amount represents less than $.01 per share.
(6) Not annualized.
(7) Without voluntary reimbursement of expenses and/or waiver of fees by the
investment adviser, the annualized ratio of expenses to average net assets
for the period ended December 31, 1993 would have been 1.25%.
(8) Annualized.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Special Growth Fund
______________________________________
NOTES TO FINANCIAL STATEMENTS
NOTE 1_Significant Accounting Policies:
Dreyfus Special Growth Fund (the "Fund") is a diversified equity
investment portfolio that seeks above-average capital growth without regard
to income through investments principally in securities of issuers thought to
have significant growth and potential. The Dreyfus/Laurel Funds Trust (the
"Trust") is registered under the Investment Company Act of 1940 ("Act") and
operates as a series company currently offering four series including the
Fund. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon
Bank").
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Distributor, located at One Exchange
Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI
Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc.,
the parent company of which is Boston Institutional Group, Inc.
The Fund is currently authorized to issue two classes of shares:
Investor shares and Class R shares. Investor shares are sold primarily to
retail investors and bear a 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 fee and voting
rights on matters affecting a single class.
Investment income, net of expenses (other than class specific
expenses) and realized and unrealized gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets of each
class.
(a) Portfolio Valuation: Investments in securities are valued at the
last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities
market. Securities not listed on an exchange or the national securities
market, or securities for which there were no transactions, are valued at the
average of the most recent bid and asked prices. Bid price is used when no
asked price is available. Securities for which there are no such valuations
are valued at fair value as determined in good faith under the direction of
the Board of Trustees. Investments denominated in foreign currencies are
translated to U.S. dollars at the prevailing rates of exchange. Forward
currency contracts are valued at the forward rate.
(b) Securities Transactions and Investment Income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(c) Foreign Currency Transactions: The Fund does not isolate that
portion of the results of the operations resulting from changes in foreign
exchange rates on investment from the fluctuations arising from changes in
the market prices of securities held. Such fluctuations are included with the
net realized and unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference
<PAGE>
Dreyfus Special Growth Fund
______________________________________
NOTES TO FINANCIAL STATEMENTS (continued)
between the amount of dividends, interest, and foreign withholding
taxes recorded on the Fund's books, and the U.S. dollar equivalent of the
amounts actually received or paid. Net unrealized foreign exchange gains and
losses arise from changes in the value of assets and liabilities other than
investments in securities, resulting from changes in exchange rates. Such
gains and losses are included with net realized and unrealized gain or loss
on investments.
(d) Forward Currency Exchange Contracts: The Fund enters into forward
currency exchange contracts in order to hedge its exposure to changes in
foreign currency exchange rates on its foreign portfolio holdings. When
executing forward currency exchange contracts, the Fund is obligated to buy
or sell a foreign currency at a specified rate on a certain date in the
future. With respect to sales of forward currency exchange contracts, the
Fund would incur a loss if the value of the contract increases between the
date the forward contract is opened and the date the forward contract is
closed. The Fund realizes a gain if the value of the contract decreases
between those dates. With respect to purchases of forward currency exchange
contracts, the Fund would incur a loss if the value of the contract decreases
between the date the forward contract is opened and the date the forward
contract is closed. The Fund realizes a gain if the value of the contract
increases between those dates. The Fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency
exchange contracts which is typically limited to the unrealized gains on such
contracts that are recognized in the statement of assets and liabilities. At
December 31, 1995, there were no open forward currency exchange contracts.
(e) Distributions to Shareholders: Dividends are recorded on the
ex-dividend date. Dividends from investment income-net and dividends from net
realized capital gain are normally declared and paid annually, but the Fund
may make distributions on a more frequent basis to comply with the distributio
n requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Fund not to distribute such gain.
(f) Federal Income Taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes. For Federal income tax purposes, each series is treated as a
single entity for the purpose of determining such qualification.
During the year ended December 31, 1995, the Fund had a net operating
loss of $397,865 for book purposes. Substantially all of this is not
deductible for Federal income tax purposes.
NOTE 2_Investment Management Fee and Other Transactions with Affiliates:
(a) Investment Management Fee: Pursuant to an Investment Management
agreement with the Manager, the Manager provides or arranges for one or more
third parties and or affiliates to provide investment advisory,
administrative, custody, fund accounting and transfer agency services to the
Fund. 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 1.15% of the value of the Fund's
average daily net assets. Out of its fee, the Manager pays all of the
expenses of the Fund except brokerage fees, taxes, interest, Rule 12b-1
distribution fees and expenses, fees and expenses of non-interested Trustees
<PAGE>
Dreyfus Special Growth Fund
______________________________________
NOTES TO FINANCIAL STATEMENTS (continued)
(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).
(b) Distribution Plan: The Fund has adopted a distribution plan (the
"Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its Investor
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 to
compensate the Distributor and Dreyfus Service Corporation, an affiliate of
the Manager, for shareholder servicing activities and the Distributor for
activities primarily intended to result in the sale of Investor shares. The
Class R shares bear no distribution fee. For the year ended December 31,
1995, the distribution fee for the Investor shares was $165,253.
Under its terms, the Plan shall remain in effect from year to year,
provided such continuance is approved annually by a vote of majority of those
Trustees who are not "interested persons" of the Investment Company and who
have no direct or indirect financial interest in the operation of the Plan or
in any agreement related to the Plan.
(c) Trustees' Fees: Each trustee who is not an "interested person" as
defined in the Act receives $27,000 per year, $1,000 for each Board meeting
attended and $750 for each Audit Committee attended and is reimbursed for
travel and out-of-pocket expenses. These expenses are paid in total by the
following funds: the Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel Tax-Free
Municipal Funds, and the Dreyfus/Laurel Funds Trust. In addition the
Chairman of the Board receives an annual fee of $75,000 per year. These fees
and expenses are charged and allocated to each series based on net assets.
NOTE 3_Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the year ended December 31, 1995 amounted to $45,903,163 and
$62,436,096, respectively.
At December 31, 1995, accumulated net unrealized appreciation on
investments was $12,570,373, consisting of $17,956,846 gross unrealized
appreciation and $5,386,473 gross unrealized depreciation.
At December 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
<PAGE>
Dreyfus Special Growth Fund
______________________________________
Independent Auditors' Report
Board of Trustees and Shareholders:
The Dreyfus/Laurel Funds Trust
We have audited the accompanying statement of assets and liabilities of
the Dreyfus Special Growth Fund of The Dreyfus/Laurel Funds Trust as of
December 31, 1995, and the related statement of operations for the year then
ended, and the statement of changes in net assets and the financial
highlights for each of the two years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these financ
ial statements and financial highlights based on our audits. The financial
highlights for each of the years or periods in the three-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 audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995, 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 audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of the Dreyfus Special Growth Fund of The Dreyfus/Laurel Funds Trust
as of December 31, 1995, and the results of its operations for the year then
ended, changes in its net assets, and the financial highlights for each of
the years in the two year period then ended, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Pittsburgh, Pennsylvania
February 6, 1996
<PAGE>
[Dreyfus lion "d" LOGO]
Dreyfus Special Growth Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Trust
One Cabot Road
Medford, MA 02155
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 322/722AR9512
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS SPECIAL GROWTH FUND INVESTOR CLASS SHARES WITH
THE STANDARD AND POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
________________________________________________________
| | DREYFUS |STANDARD & POOR'S |
| | SPECIAL GROWTH | 500 COMPOSITE |
| PERIOD | FUND | STOCK |
| |(INVESTOR CLASS SHARES)| PRICE INDEX* |
|-----------|-----------------------|----------------- |
| 5/3/82 | 10,000 | 10,000 |
| 12/31/82 | 13,490 | 12,545 |
| 12/31/83 | 18,869 | 15,375 |
| 12/31/84 | 16,775 | 16,339 |
| 12/31/85 | 22,613 | 21,524 |
| 12/31/86 | 24,346 | 25,540 |
| 12/31/87 | 23,418 | 26,881 |
| 12/31/88 | 28,451 | 31,332 |
| 12/31/89 | 33,808 | 41,243 |
| 12/31/90 | 32,170 | 39,960 |
| 12/31/91 | 41,571 | 52,108 |
| 12/31/92 | 52,458 | 56,073 |
| 12/31/93 | 62,954 | 61,714 |
| 12/31/94 | 51,485 | 62,523 |
| 12/31/95 | 67,159 | 85,996 |
|-----------|-----------------------|----------------- |
* Source: Lipper Analytical Services, Inc.
