DREYFUS LAUREL FUNDS TRUST, N-30D, 1996-09-05

DREYFUS LAUREL FUNDS TRUST
N-30D, 1996-09-05

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<PAGE>

Dreyfus
Core Value
Fund
Semi-Annual
Report

June 30, 1996

<PAGE>

Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:
We are pleased to report that, for its semi-annual period ended
June 30, 1996, the Dreyfus Core Value Fund achieved a total return somewhat
above the return of the Standard & Poor's 500 Composite Stock Price Index.
For the six-month period ended June 30, 1996, the Dreyfus Core
Value Fund provided a total return of 10.15% for its Investor shares, 10.19%
for its Institutional shares, and 10.27% for its Class R shares.* These
results compare with a total return of 10.09% for the Standard & Poor's 500
Composite Stock Price Index for the same period.**

THE ECONOMY

The U.S. economy has rebounded so far in 1996 following its
midcycle growth slowdown of last year. Yet overall corporate profit growth is
slowing this year. Although actual inflation remains steady, faster economic
growth has reignited fears of higher future inflation. This has pushed bond
yields higher and built expectations for a Federal Reserve Board tightening
in coming months. This is the sixth expansion year for this business cycle,
and we believe that it will prove a long cycle.
Economic growth has accelerated since year-end. The first quarter's
2.3% real Gross Domestic Product growth brought with it a demand rebound that
depleted inventories. Even stronger second quarter growth is apparent, led by
manufacturers' attempts to rebuild inventories. In addition, steady job
creation continues to support growth in consumer incomes and spending. As
yet, there are few indications of economic cooling. Some previously strong
capital goods sectors may now be slowing, but overall economic growth is
broadening to more industries. Despite better economic performance this year
than last, profit growth may have peaked last year.
Although surging oil prices boosted overall inflation temporarily
this spring, other price inflation has remained tame this year. Nevertheless,
as we have mentioned, fears of higher future inflation have again quickened,
roused especially by the upward pressure on wages as the labor market
tightens. Thus bond yields have risen substantially this year, and short-term
market rates also are higher. So far, long-term rates have risen much more
than short-term rates, forcing the yield curve to steepen. A steep yield
curve is usually supportive of sustained growth in the real economy.
As we look forward, the question arises whether the higher interest
rates already in place and those which are expected will effectively cool the
economy. At present, however, any advance signs of an eventual cooling off in
the economy are hard to discern. The preoccupation at present is with the
economy's impressive strength, and the problems such growth could create.

MARKET OVERVIEW

The broad trend of the stock market was strongly upward during the
six months under review. However, there were many crosscurrents at work. Not
all stock groups benefited equally. The blue chips in the Dow Jones
Industrial Average enjoyed solid advances for the six months, as did the
broader market as represented by the Nasdaq Composite Index and the Standard
& Poor's 500 Composite Stock Price Index. However, as spring turned into
summer, technology stocks began to lag, and small capitalization stocks were
unable to maintain the very fast growth pace of earlier months.
From time to time, unexpected signs of economic strength,
particularly employment and unemployment numbers, jolted the equity markets
with the specter of renewed inflation. Especially in the

<PAGE>

latter part of the half-year, concern over inflation and higher
interest rates restrained market performance in a number of industry
categories.
Profits, always a major element in stock performance, continued to
be strong for a good part of the period. However, fear of rising labor costs
and intensified competition at home and abroad have cast some shadows over
the profit outlook. This has been balanced, however, by the very large sum of
money that continues to be invested in equity mutual funds, much of it from
people planning for their retirement.
As the half-year ended, broad market averages were still solidly
above where they stood when the year began. This, however, was before the
downdraft in stock prices that seems underway as we write.

PORTFOLIO FOCUS

There was no single key to the Fund's rewarding performance during
the reporting period. Results were achieved two ways: by careful stock
selection and by avoidance of mishaps that overtook some industries and
specific issues.
The Fund's portfolio was heavily overweighted, compared to the S&P
500, in consumer services and transportation, two sectors that were
particularly strong during the first half of the year. On the other hand, we
were underrepresented in capital goods and consumer durables, two industry
groups that did particularly well. Our weighting in technology stocks was
lower than that of the S&P 500 average, which penalized our performance, but
we held more than the S&P weighting in health stocks, which was to our
advantage.
Among the best performing stocks for the six months were Woolworth,
Toys RUs, and Philip Morris Cos.
It is a privilege to serve your investment needs. We appreciate
your confidence in Dreyfus and in the Fund.

Sincerely,

Dreyfus Investment Committee
July 15, 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 U.S. stock market performance.

<PAGE>
<TABLE>
<CAPTION>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Investments June 30, 1996 (Unaudited)

Common Stocks--97.7% Shares Value
- ------------------------------------------------------------------------------ ------------ ------------
<S> <C> <C>
Domestic Common Stocks--79.9%

Basic Industries--5.5% Alumax................................. 66,000(a) $ 2,004,750
Bethlehem Steel........................ 167,000(a) 1,983,125
Betz Laboratories...................... 104,900 4,602,487
Grace (W.R) & Co. ..................... 57,900 4,103,663
James River............................ 125,400 3,307,425
Louisiana Pacific...................... 95,000 2,101,875
Mallinckrodt Group..................... 117,800 4,579,475
Reynolds Metals........................ 86,000 4,482,750
Witco.................................. 35,000 1,203,125
------------
28,368,675
------------
Capital Goods--4.5% General Electric....................... 72,500 6,271,250
ITT Industries......................... 143,700 3,610,463
Litton Industries...................... 55,000(a) 2,392,500
Lockheed Martin........................ 53,900 4,527,600
Rockwell International................. 80,000 4,580,000
TRW.................................... 21,500 1,932,312
------------
23,314,125
------------
Consumer Durables--2.5% Black & Decker......................... 124,283 4,800,431
Cooper Tire & Rubber................... 99,100 2,204,975
Ford Motor............................. 184,000 5,957,000
------------
12,962,406
------------
Consumer Non-durables--8.1% Fruit of the Loom, Cl. A............... 154,500(a) 3,939,750
Hasbro................................. 62,400 2,230,800
Kimberly-Clark......................... 65,000 5,021,250
Loews.................................. 87,700 6,917,338
McKesson............................... 55,000 2,619,375
Philip Morris Cos. .................... 98,700 10,264,800
Polaroid............................... 142,000 6,478,750
RJR Nabisco Holdings................... 73,500 2,278,500
Tupperware............................. 51,600 2,180,100
------------
41,930,663
------------
Consumer Services--17.7% American Stores........................ 183,200 7,557,000
Brinker International.................. 148,000(a) 2,220,000
Darden Restaurants..................... 271,000 2,913,250
Dayton Hudson.......................... 34,800 3,588,750
Deluxe................................. 73,000 2,591,500
Dun & Bradstreet....................... 78,000 4,875,000
Eckerd................................. 126,600(a) 2,864,325
Harcourt General....................... 115,000 5,750,000
ITT.................................... 88,100 5,836,625
Kroger................................. 182,500(a) 7,208,750
Melville............................... 181,800 7,362,900
New York Times, Cl. A.................. 125,000 4,078,125

<PAGE>

Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1996 (Unaudited)

Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ ------------ ------------
Domestic Common Stocks (continued)

Consumer Services (continued) Pittston Brinks Group.................. 153,000 $ 4,456,125
Pittston Burlington Group.............. 76,500 1,654,313
Rite Aid............................... 113,100 3,364,725
Safeway................................ 84,000 2,772,000
Sears, Roebuck & Co. .................. 58,000 2,820,250
Tandy.................................. 74,500 3,529,437
Toys R Us.............................. 260,800(a) 7,432,800
Woolworth.............................. 399,000(a) 8,977,500
------------
91,853,375
------------
Energy--5.0% Amerada Hess........................... 64,200 3,442,725
Dresser Industries..................... 125,900 3,714,050
Exxon.................................. 56,000 4,865,000
MAPCO.................................. 66,000 3,720,750
Mobil.................................. 41,600 4,664,400
Tosco.................................. 57,500 2,889,375
Ultramar............................... 81,800 2,372,200
------------
25,668,500
------------
Financial Services--12.0% Aetna Life & Casualty.................. 65,000 4,647,500
Allmerica Financial.................... 81,600 2,427,600
Allstate............................... 132,000 6,022,500
American Express....................... 93,000 4,150,125
American International Group........... 39,050 3,851,306
Bank of Boston......................... 56,470 2,795,265
BankAmerica............................ 59,930 4,539,698
BayBanks............................... 31,100 3,351,025
Dean Witter, Discover & Co. ........... 52,000 2,977,000
Equitable Cos. ........................ 137,600 3,422,800
Everest Reinsurance Holdings........... 147,700 3,821,737
First Colony........................... 78,000 2,418,000
Great Western Financial................ 55,000 1,313,125
ITT Hartford Group..................... 53,100 2,827,575
Morgan (JP) & Co. ..................... 40,800 3,452,700
Republic New York...................... 36,000 2,241,000
SAFECO................................. 144,800 5,122,300
Washington Mutual...................... 81,000 2,419,875
------------
61,801,131
------------
Health Care--7.5% Allergan............................... 147,000 5,769,750
Baxter International................... 153,900 7,271,775
Bristol-Myers Squibb................... 75,300 6,777,000
Columbia/HCA Healthcare................ 86,060 4,593,453
Horizon/CMS Healthcare................. 89,500 1,152,313
Nu-Med................................. 13,812(a) 0
Pharmacia & Upjohn..................... 60,000 2,662,500
Progressions Health Systems............ 69,060(a) 19,423

<PAGE>

Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1996 (Unaudited)

Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ ------------ ------------
Domestic Common Stocks (continued)

Health Care (continued) Schering Plough........................ 97,000 $ 6,086,750
Tenet Healthcare....................... 205,000(a) 4,381,875
------------
38,714,839
------------
Real Estate--1.6% Associated Estates Realty.............. 68,900 1,446,900
Avalon Properties...................... 94,500 2,055,375
Camden Property Trust.................. 80,833 1,919,784
Equity Residential Property Trust...... 39,000 1,282,125
Liberty Property Trust................. 88,000 1,749,000
------------
8,453,184
------------
Technology--4.2% Compaq Computer........................ 66,100(a) 3,255,425
Dell Computer.......................... 43,100(a) 2,192,713
Digital Equipment...................... 82,800(a) 3,726,000
Harris................................. 50,000 3,050,000
Lucent Technologies.................... 127,000 4,810,125
Quantum................................ 62,500(a) 914,062
Xerox.................................. 66,000 3,531,000
------------
21,479,325
------------
Transportation--1.8% CSX.................................... 50,000 2,412,500
Union Pacific.......................... 95,200 6,652,100
------------
9,064,600
------------
Utilities--9.5% AT&T................................... 145,500 9,021,000
CMS Energy............................. 128,800 3,976,700
GTE.................................... 126,500 5,660,875
Illinova............................... 146,100 4,200,375
MCI Communications..................... 232,000 5,945,000
NYNEX.................................. 127,600 6,061,000
Pinnacle West Capital.................. 82,500 2,505,937
Sprint................................. 129,300 5,430,600
360 (Degrees) Communications........... 263,300 6,319,200
------------
49,120,687
------------
TOTAL DOMESTIC COMMON STOCKS........... 412,731,510
------------
------------
Foreign Common Stocks--17.8%

Argentina--.8% Central Costanera, Cl. B............... 24,000 88,320
Disco, ADR............................. 3,000(a) 66,375
Telefonica de Argentina SA............. 42,000 124,320
YPF Sociedad Anonima, ADR.............. 169,000 3,802,500
------------
4,081,515
------------
Australia--.2% Amcor.................................. 28,900 196,738
Boral.................................. 103,252 268,156

<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1996 (Unaudited)

Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ ------------ ------------
Foreign Common Stocks (continued)

Australia (continued) Goodman Fielder........................ 175,702 $ 178,378
Southcorp Holdings..................... 100,000 247,905
Westpac Banking........................ 60,635 268,662
------------
1,159,839
------------
Austria--.0% Creditanstalt-Bankverein............... 1,200 166,834
------------
Bermuda--.2% IPC Holdings, ADR...................... 48,800 982,100
------------
Brazil--.1% Aracruz Celulose SA, ADR............... 7,200 68,400
Compania Energentina De Minas Gerais, ADR 4,200 114,450
Pao De Accur, ADR...................... 4,000 65,500
Telecomunicacoes Brasileiras SA, ADR... 1,000 69,625
------------
317,975
------------
Canada--2.9% Canadian Pacific, ADR.................. 438,500 9,647,000
Horsham, ADR........................... 219,500 3,045,563
Quebecor Printing, ADR................. 113,500 1,787,625
United Dominion Industries, ADR........ 24,000 552,000
------------
15,032,188
------------
Chile--.1% Banco BHIF, ADR........................ 5,500(a) 110,688
Compania De Telecomucicaciones, ADR.... 1,000 98,125
Cristalerias De Chile, ADR............. 4,400 103,400
------------
312,213
------------
China--.0% Ek Chor China Motorcycle, ADR.......... 5,000 67,500
Jilin Chemicals, ADR................... 3,000(a) 55,125
------------
122,625
------------
Denmark--.1% Tele Danmark, ADR...................... 11,000 279,125
------------
Finland--.8% Nokia AB, ADR.......................... 114,000 4,218,000
------------
France--1.9% Alcatel Alsthom, ADR................... 139,635 2,461,067
C.S.F. (Thompson)...................... 8,648 243,054
Chargeurs International................ 1,200 53,631
Credit Local de France................. 2,000 162,766
Danone................................. 2,588 391,580
Elf Aquitaine, ADS..................... 136,158 5,003,807
Guyenne & Gascogne..................... 769 274,979
Pathe.................................. 1,200 281,558
Rhone-Poulenc, ADR..................... 10,000 265,000
Societe Generale....................... 3,881 426,658
Societe Nationale Elf Equitiane........ 3,193 234,800
------------
9,798,900
------------
<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1996 (Unaudited)

Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ ------------ ------------
Foreign Common Stocks (continued)

Germany--.3% Bayer................................. . 10,000 $ 352,806
Deutsche Bank.......................... 10,000 472,596
Siemens................................ 7,000 373,548
Tarkett................................ 10,000 210,699
VEBA................................... 6,000 318,490
------------
1,728,139
------------
Hong Kong--.2% Cheung Kong............................ 43,000 309,722
Dah Sing Financial..................... 20,000 60,594
HSBC................................... 31,682 478,914
Harbour Centre Development............. 40,000 54,264
Yue Yuen Industrial.................... 996,000 283,101
------------
1,186,595
------------
Hungary--.0% Pick Szeged, ADR....................... 1,000(a,b) 42,000
------------
India--.0% Cesc Limited, ADR...................... 10,000 30,500
Steel Authority, ADR................... 4,000(b) 59,000
------------
89,500
------------
Indonesia--.0% PT Bank Bali........................... 30,000 66,101
PT Indosat, ADR........................ 2,000 67,000
------------
133,101
------------
Israel--.0% Super sol.............................. 2,500(a) 52,882
------------
Italy--.2% Fiat Spa............................... 45,000 151,604
Istituto Mobiliare Italiano, ADR....... 13,000 331,500
Stet, Di Risp.......................... 120,000 315,254
------------
798,358
------------
Japan--1.8% Canon.................................. 20,000 415,869
Chudenko............................... 6,450 234,118
Credit Saison.......................... 21,000 507,524
Dai-Tokyo Fire & Marine Insurance...... 68,000 511,628
Hitachi................................ 53,000 493,023
Hitachi Koki........................... 40,000 393,981
Honda Motor............................ 15,000 388,509
Ito-Yokado............................. 10,000 602,827
Kao.................................... 45,000 607,387
Mabuchi Motor.......................... 7,000 445,600
Mikuni Coca Cola....................... 27,000 406,293
Mitsubishi Heavy Industries............ 60,000 521,477
Murata Manufacturing................... 15,400 584,259
Nishimatsu Construction................ 40,000 437,756

<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1996 (Unaudited)

Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ ------------ ------------
Foreign Common Stocks (continued)

Japan (continued) Ono Pharmaceutical..................... 10,000 $ 343,821
Sankyo Conpv........................... 8,000 306,430
Sekisui House.......................... 40,000 455,996
Toshiba................................ 60,000 426,813
Toyota Motor........................... 24,000 599,726
Yamanouchi Pharmaceutical.............. 15,000 325,581
Yamato Transport....................... 38,500 452,941
------------
9,461,559
------------
Luxembourg--.0% Espirito Santo Financial, ADR.......... 5,000 63,750
------------
Malaysia--.2% AMMB Holdings Berhad................... 8,000 112,269
Affin Holdings Berhad.................. 130,000 304,932
IOI Properties Berhad.................. 20,000 62,951
Leader Universal Holdings Berhad....... 30,000 84,803
Malayawata Steel Berhad................ 30,000 51,484
Malaysia International Shipping........ 17,000 52,827
Pacific & Orient Berhad................ 25,000 70,168
United Engineers....................... 15,000 104,050
------------
843,484
------------
Mexico--.1% ALFA SA................................ 10,558 47,427
Fomento Economico Mexicano............. 25,000 70,910
Tablex SA.............................. 30,000 72,032
Telefonos De Mexico, Series L.......... 120,000 202,322
Telefonos De Mexico, Series L, ADR..... 4,000 134,000
Transportacion Maritima, ADR........... 14,800 109,150
Tubes De Acero de Mexico, ADR.......... 6,500(a) 61,344
------------
697,185
------------
Netherlands--2.1% ABN-Amro Holdings...................... 5,645 302,741
AKZO Nobel NV, ADR..................... 2,700 161,325
Hollandsche Beton Groep................ 1,500 287,178
Hunter Douglas......................... 4,083 278,495
ING Groep.............................. 4,917 146,531
Koninklinke KNP........................ 10,000 239,461
Philips Electronics NV, ADR............ 203,500 6,639,188
Royal PTT Nederland, ADR............... 6,671 251,830
Stad Rotterdam CVA..................... 8,013 289,932
Unilever NV, ADR....................... 14,000 2,031,750
------------
10,628,431
------------
New Zealand--.1% Air New Zealand........................ 47,000 147,400
Fletcher Challenge Energy.............. 65,000 143,475
------------
290,875
------------
<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1996 (Unaudited)

Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ ------------ ------------
Foreign Common Stocks (continued)

Norway--.1% Christiania Bank....................... 65,000 $ 152,988
Orkla AS............................... 4,500 218,752
------------
371,740
------------
Phillipines--.0% Phillipines Bank....................... 3,000(a) 50,210
------------
Portugal--.1% Portugal Telecom SA, ADR............... 15,000(a) 393,750
------------
Singapore--.2% Development Bank of Singapore.......... 27,000 336,902
Far East Levingston Shipbuilding....... 57,000 315,207
Malaysian International Shipping....... 96,666 291,266
Singapore Airlines..................... 8,000 84,509
------------
1,027,884
------------
South Africa--.0% Barlow LTD, ADR........................ 6,000 63,150
Malbak................................. 10,000 49,677
Sasol.................................. 8,000 86,876
------------
199,703
------------
South Korea--.0% Pohang Iron & Steel, ADR............... 4,000 97,500
------------
Spain--1.0% Corporacion Bancaria De Espana, ADR.... 20,000 440,000
Gas Y Electridad SA.................... 4,000 221,529
Iberdrola SA........................... 20,000 205,148
Repsol SA.............................. 8,000 278,003
Repsol SA, ADR......................... 112,600 3,912,850
------------
5,057,530
------------
Sweden--.5% Astra AB, Class A, ADR................. 50,000 2,187,500
Marieberg Tidnings..................... 10,000 250,320
Scania AB 'A', ADR..................... 2,250 62,438
Scania AB 'B', ADR..................... 2,250 62,156
Swedish Match, ADR..................... 1,000 30,875
Volvo AB 'B', ADR...................... 10,000 225,000
------------
2,818,289
------------
Switzerland--2.6% Ciba-Geigy AG.......................... 400 486,832
Ciba-Geigy AG, ADR..................... 128,500 7,830,469
Magazine Zum Globus.................... 450 262,171
Nestle SA.............................. 225 256,604
Sandoz, ADR............................ 63,000 3,606,750
Schweizerischer Banksverein............ 2,400 473,104
Zurich Versicherungs................... 900 244,932
------------
13,160,862
------------
<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1996 (Unaudited)

Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------ ------------ ------------
Foreign Common Stocks (continued)

Thailand--.0% Bangkok Bank Public.................... 7,000 $ 94,878
Srithai Superware...................... 12,000 83,688
------------
178,566
------------
United Kingdom--1.2% Abbey National......................... 35,000 293,909
BTR.................................... 100,837 396,776
Boots.................................. 22,000 197,719
British Gas, ADR....................... 3,000 84,000
Devro.................................. 27,500 103,299
Hanson, ADR............................ 25,000 356,250
Laird Group PLC........................ 45,000 326,195
National Westminster Bank.............. 47,042 449,430
Powergen............................... 55,401 403,309
RTZ.................................... 30,263 447,664
Scapa Group............................ 70,862 260,681
Smith (David S.) Holdings.............. 55,000 233,490
SmithKline Beecham PLC, ADR............ 45,800 2,490,375
------------
6,043,097
------------
TOTAL FOREIGN COMMON STOCKS............ 91,886,304
------------
------------
TOTAL COMMON STOCKS
(cost $426,188,712).................. $504,617,814
------------
------------
Foreign Convertible Preferred Stocks--.1%
- ------------------------------------------------------------------------------

Brazil--.0% Ceval Alimentos SA, ADR................ 7,500 $ 78,750
------------
Germany--.1% Henkel KGaA-Vorzug..................... 700 301,871
------------
Phillipines--.0% Phillipine Long Distance...............
Telecommunications, ADR.............. 2,000 109,000
------------
TOTAL FOREIGN CONVERTIBLE
PREFERRED STOCKS
(cost $516,343)...................... $ 489,621
------------
------------
Foreign Preferred Stocks--.1%
- ------------------------------------------------------------------------------

Brazil--.0% Banco Itau............................. 200 $ 81,232
Brasmotor.............................. 300(a) 93,778
------------
175,010
------------
Germany--.1% RWE AG (non-voting).................... 14,000 430,062
------------
TOTAL FOREIGN PREFERRED STOCKS.........
(cost $493,562)...................... $ 605,072
------------
------------

<PAGE>

Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1996 (Unaudited)

Principal
Short-Term Investments--2.1% Amount Value
------------- ------------

Commercial Paper; Ford Motor Credit Corporation,
5.50% due 7/1/96
(cost $10,765,000)................... $ 10,765,000 $ 10,765,000
------------
------------
TOTAL INVESTMENTS (cost $438,263,617)......................................... 100.0% $516,477,507
------ ------------
------ ------------
CASH AND RECEIVABLES (NET).................................................... .0% $ 173,087
------ ------------
------------
NET ASSETS.................................................................... 100.0% $516,650,594
------ ------------
------ ------------
<FN>
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 June 30, 1996,
these securities amounted to $101,000 or approximately .02% of net assets.

</TABLE>

See notes to financial statements.

<PAGE>
<TABLE>
<CAPTION>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities June 30, 1996 (Unaudited)

<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $438,263,617)--see Statement of Investments......................... $516,477,507
Cash and foreign currency................................................... 1,852,973
Receivable for investment securities sold................................... 206,477
Dividends receivable........................................................ 1,067,586
------------
519,604,543
LIABILITIES:
Due to The Dreyfus Corporation--Note 2(a)................................... $ 747,045
Due to Distributor--Note 2(b)............................................... 97,892
Payable for investment securities purchased................................. 2,097,089
Payable for shares of Beneficial Interest redeemed.......................... 7,285
Trustee's fees payable--Note 2(c)........................................... 4,638 2,953,949
---------- ------------
NET ASSETS.................................................................... $516,650,594
------------
------------
REPRESENTED BY:
Paid-in capital............................................................. $381,908,737
Accumulated undistributed investment income--net............................ 1,588,930
Accumulated undistributed net realized gain on investments.................. 54,937,199
Accumulated net unrealized appreciation on investments and
foreign currency transactions............................................. 78,215,728
------------
NET ASSETS at value........................................................... $516,650,594
------------
------------
NET ASSET VALUE, offering and redemption price per share:
Investor Shares
unlimited number of shares of Beneficial Interest authorized
($444,843,888 / 13,713,902 shares of Beneficial Interest outstanding)..... $32.44
------
------
Institutional Shares
unlimited number of shares of Beneficial Interest authorized
($61,374,337 / 1,892,353 shares of Beneficial Interest outstanding)....... $32.43
------
------
Class R Shares
unlimited number of shares of Beneficial Interest authorized
($10,432,369 / 320,891 shares of Beneficial Interest outstanding)......... $32.51
------
------

</TABLE>

See notes to financial statements.

<TABLE>
<CAPTION>
<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Operations six months ended June 30, 1996 (Unaudited)

INVESTMENT INCOME:
<S> <C> <C>
Income:
Cash dividends (net of $203,765 foreign taxes withheld at source)......... $ 5,489,009
Interest.................................................................. 265,010
-----------
Total Income........................................................ $ 5,754,019
Expenses:
Investment management fee--Note 2(a)...................................... 2,182,773
Distribution fee--Note 2(b)............................................... 578,720
Trustees' fees and expenses--Note 2(c).................................... 57,152
-----------
Total Expenses...................................................... 2,818,645
Less--reduction in management fee due to undertakings--Note 2(a).......... 49,765
-----------
Net Expenses........................................................ 2,768,880
-----------
INVESTMENT INCOME--NET.............................................. 2,985,139
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS--Note 3:
Net realized gain on investments and foreign currency transactions.......... $54,872,464
Net realized (loss) on forward currency exchange contracts.................. (40,781)
-----------
Net Realized Gain......................................................... 54,831,683
Net unrealized (depreciation) on investments and foreign
currency transactions..................................................... (9,776,634)
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS..................... 45,055,049
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $48,040,188
-----------
-----------

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets

<S> <C> <C>
Six Months Ended Year Ended
June 30, 1996 December 31,
(Unaudited) 1995
-------------- -------------
OPERATIONS:
Investment income--net.................................................... $ 2,985,139 $ 6,286,623
Net realized gain on investments.......................................... 54,831,683 44,708,361
Net unrealized appreciation (depreciation) on investments for the period.. (9,776,634) 80,269,570
------------ ------------
Net Increase In Net Assets Resulting From Operations.................. 48,040,188 131,264,554
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Investor Shares......................................................... (1,207,221) (5,652,275)
Institutional Shares.................................................... (188,979) (1,170,331)
Class R Shares.......................................................... (35,933) (20,018)
Net realized gain on investments:
Investor Shares......................................................... (8,490,788) (32,708,062)
Institutional Shares.................................................... (1,208,320) (6,089,493)
Class R Shares.......................................................... (204,919) (14,693)
------------ ------------
Total Dividends....................................................... (11,336,160) (45,654,872)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Investor Shares......................................................... 30,074,764 32,376,118
Institutional Shares.................................................... 4,309,903 92,766,522
Class R Shares.......................................................... 10,730,737 3,629,228
Dividends reinvested:
Investor Shares......................................................... 8,683,436 34,209,203
Institutional Shares.................................................... 1,363,285 7,078,027
Class R Shares.......................................................... 240,853 17,322
Cost of shares redeemed:
Investor Shares......................................................... (26,708,994) (53,537,298)
Institutional Shares.................................................... (25,320,701) (97,834,686)
Class R Shares.......................................................... (892,715) (5,221,642)
------------ ------------
Increase In Net Assets From Beneficial Interest Transactions.......... 2,480,568 13,482,794
------------ ------------
Total Increase In Net Assets........................................ 39,184,596 99,092,476
NET ASSETS:
Beginning of period....................................................... 477,465,998 378,373,522
------------ ------------
End of period (including undistributed investment income--net:
$1,588,930 in 1996 and $35,924 in 1995)................................. $516,650,594 $477,465,998
------------ ------------
------------ ------------
</TABLE>

<TABLE>
<CAPTION>
Shares
-----------------------------------------------------------------------------------------
Investor Institutional Class R
----------------------------------- ----------------------- -------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995 (Unaudited) 1995
--------------- ------------ ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.............. 950,520 1,133,898 136,321 3,304,350 334,862 138,967
Shares issued for dividends
reinvested............. 277,072 1,141,448 43,523 236,346 7,670 577
Shares redeemed.......... (844,639) (1,888,328) (797,639) (3,450,788) (27,755) (177,018)
-------- ---------- -------- ---------- ------- --------
Net Increase (Decrease) In
Shares Outstanding... 382,953 387,018 (617,795) 89,908 314,777 (37,474)
-------- ---------- -------- ---------- ------- --------
-------- ---------- -------- ---------- ------- --------

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Core Value 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 period indicated. This
information has been derived from the Fund's financial statements.

Investor Class(1,2)
-----------------------------------------------------------------------
Six Months Ended Year Ended December 31,
June 30, 1996 ----------------------------------------------------
PER SHARE DATA: (Unaudited) 1995 1994 1993(3) 1992 1991
----------------- ------ ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $30.13 $24.56 $27.80 $25.46 $27.40 $23.20
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net..................... .18 .41 .42 .31 .36 .39
Net realized and unrealized gain (loss)
on investments........................... 2.85 8.24 (.29) 3.86 .70 4.88
------ ------ ------ ------ ------ ------
Total from Investment
Operations............................. 3.03 8.65 .13 4.17 1.06 5.27
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment
income--net.............................. (.09) (.45) (.40) (.30) (.36) (.50)
Dividends from net realized gain on
investments.............................. (.63) (2.63) (2.97) (1.53) (2.64) (.57)
------ ------ ------ ------ ------ ------
Total Distributions...................... (.72) (3.08) (3.37) (1.83) (3.00) (1.07)
------ ------ ------ ------ ------ ------
Net asset value, end of period............. $32.44 $30.13 $24.56 $27.80 $25.46 $27.40
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN..................... 10.15%(4) 35.56% .38% 16.51% 4.03% 22.87%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets............................... .56%(4) 1.13% 1.11% 1.15% 1.22% 1.20%
Ratio of net investment income to
average net assets....................... .59%(4) 1.43% 1.47% 1.13% 1.33% 1.61%
Decrease reflected in above expense ratios
due to undertakings by the Manager....... .01%(4) .02% .01% .01% -- --
Portfolio Turnover Rate.................... 45.10%(4) 54.42% 73.00% 75.00% 66.00% 157.00%
Average commission rate paid(5)............ $.0530 -- -- -- -- --
Net Assets, end of period
(000's Omitted).......................... $444,844 $401,674 $317,868 $349,813 $423,286 $508,971

<FN>
- ----------------
(1) On February 1, 1993 exisiting shares of the Fund were designated the
Retail Class and effective April 4, 1994 the Retail
Class shares were reclassified as Investor 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) Not annualized.
(5) For fiscal years beginning January 1, 1996, the Fund is required to
disclose its average commission paid per share for purchases and sales of
investment securities.

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Financial Highlights (continued)

Institutional Class
-----------------------------------------------------------------
Six Months Ended Year Ended December 31, Period Ended
June 30, 1996 ------------------------- December 31,
PER SHARE DATA: (Unaudited) 1995 1994(1) 1993(2)(3)
----------------- ------ --------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period............ $30.12 $24.56 $27.80 $25.96
------ ------ ------ ------
Investment Operations:
Investment income--net.......................... .22 .47 .47 .32
Net realized and unrealized gain (loss) on
investments................................... 2.82 8.20 (.31) 3.38
------ ------ ------ ------

Total from Investment Operations.............. 3.04 8.67 .16 3.70
------ ------ ------ ------

Distributions:
Dividends from investment income--net........... (.10) (.48) (.43) (.33)
Dividends from net realized gain on
investments................................... (.63) (2.63) (2.97) (1.53)
------ ------ ------ ------
Total Distributions........................... (.73) (3.11) (3.40) (1.86)
------ ------ ------ ------
Net asset value, end of period.................. $32.43 $30.12 $24.56 $27.80
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN........................... 10.19%(4) 35.60% .49% 14.38%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......... .51%(4) 1.03% 1.02% .95%(4)
Ratio of net investment income to average net
assets........................................ .63%(4) 1.53% 1.57% 1.13%(4)
Decrease reflected in above expense ratios due
to undertakings by the Manager................ .01%(4) .02% .01% --
Portfolio Turnover Rate......................... 45.10%(4) 54.42% 73.00% 75.00%
Average commission rate paid(5)................. $.0530 -- -- --
Net Assets, end of period (000's Omitted)....... $61,374 $75,607 $59,435 $79,656

<FN>
- -----------------
(1) 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.
(2) On February 1, 1993, the Fund commenced selling Institutional shares.
(3) Per share amounts have been calculated using the monthly average share
method.
(4) Not annualized.
(5) For fiscal years beginning on or after January 1, 1996, the Fund is
required to disclose its average commission rate paid per share for purchases
and sales of investment securities.

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
Financial Highlights (continued)

Class R
---------------------------------------------------
Six Months Ended Year Ended Period Ended
June 30, 1996 December 31, December 31,
PER SHARE DATA: (Unaudited) 1995 1994(1)(2)
----------------- ------------ ------------
<S> <C> <C> <C>
Net asset value, beginning of period..................... $30.18 $24.56 $28.45
------ ------ ------
Investment Operations:
Investment income--net................................... .19 .62 .29
Net realized and unrealized gain (loss) on investments... 2.88 8.16 (.83)
------ ------ ------
Total from Investment Operations....................... 3.07 8.78 (.54)
------ ------ ------
Distributions:
Dividends from investment income--net.................... (.11) (.53) (.38)
Dividends from net realized gain on investments.......... (.63) (2.63) (2.97)
------ ------ ------
Total Distributions.................................... (.74) (3.16) (3.35)
------ ------ ------
Net asset value, end of period........................... $32.51 $30.18 $24.56
------ ------ ------
------ ------ ------
TOTAL INVESTMENT RETURN.................................... 10.27%(3) 36.05% (2.31%)(3)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................. .44%(3) .88% .35%(3)
Ratio of net investment income to average net assets..... 75%(3) 1.93% .70%(3)
Decrease reflected in above expense ratios due to
undertakings by the Manager............................ .01%(3) .02% .01%(3)
Portfolio Turnover Rate.................................. 45.10%(3) 54.42% 73.00%
Average commission rate paid(4).......................... $.0530 -- --
Net Assets, end of period (000's Omitted)................ $10,433 $185 $1,070

<FN>
- -------------
(1) On August 4, 1994, the Fund commenced selling Trust shares. Effective
October 17, 1994 the Trust shares were reclassified as Class R shares.
(2) From August 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) Not annualized.
(4) For fiscal years beginning on or after January 1, 1996, the Fund is
required to disclose its average commission rate paid per share for purchases
and sales of investment securities.

</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

The Dreyfus/Laurel Funds Trust (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company and operates as a series company currently offering four
series including the Dreyfus Core Value Fund (the "Fund"). The Fund's
investment objective is to seek long-term growth of capital and current
income. The Dreyfus Corporation ("Manager") serves as the Fund's investment
manager. 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 Fund currently offers three classes of
shares: Investor, Institutional and Class R shares. Investor shares are sold
primarily to retail investors and bear a distribution fee. Institutional
shares are offered only to those customers of certain financial planners and
investment advisers who held shares of a predecessor class of the Fund as of
April 4, 1994, and bear a distribution fee. Class R shares are sold primarily
to bank trust departments and other financial service providers (including
Mellon Bank 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),
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 exchange
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 investments 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 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

<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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
June 30, 1996, there were no open forward currency exchange contracts.
(e) Distributions to shareholders: Dividends are recorded on the
ex-divided date. Dividends from investment income-net are declared and paid
on a quarterly basis. Dividends from net realized capital gain are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, 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.

NOTE 2 -- Management Fee And Other Transactions With Affiliates:

<PAGE>
Dreyfus Core Value Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(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
and Institutional shares. Under the Plan, the Fund may pay annually up to
.25% of the value of the average daily net assets attributable to its
Investor shares and up to .15% of the value of the average daily net assets
attributable to its Institutional 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 six months ended June 30, 1996, the distribution
fee for the Investor and Institutional shares was $528,929 and $49,791,
respectively.
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 Trust 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 meeting 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 six months ended June 30, 1996 amounted to $221,731,747 and
$229,101,761, respectively.
At June 30, 1996, accumulated net unrealized appreciation on investments
was $78,213,890, consisting of $86,837,645 gross unrealized appreciation and
$8,623,755 gross unrealized depreciation.
At June 30, 1996, 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>
[THIS PAGE INTENTIONALLY LEFT BLANK]

<PAGE>
Dreyfus Core Value Fund
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. CORESA966

<PAGE>

Dreyfus
Special Growth
Fund
Semi-Annual
Report

June 30, 1996

<PAGE>

Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

The following letter to investors in Dreyfus Special Growth Fund is
from Michael L. Schonberg, who is the Fund's Portfolio Manager since February
1996.
It is a pleasure to introduce Mike Schonberg, who joined the
Dreyfus investment management team in August, 1995. In addition to the
Dreyfus Special Growth Fund, he manages other Dreyfus funds. Mike's previous
experience includes managing growth-oriented portfolios at DuPont Pension
Fund and UBS Asset Management, New York, where he served as chief investment
officer and vice chairman of its Investment Policy Committee. He also has
held posts as portfolio manager for Cambridge Capital Corporation and Alliance
Capital Management Corp. Most recently he was associated with Omega Advisors
as a general partner. He is a graduate of the Massachusetts Institute of
Technology.

Sincerely,

Stephen E. Canter
Chief Investment Officer
The Dreyfus Corporation
July 11, 1996
New York, N.Y.

<PAGE>

Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

This is the first letter I have written to shareholders of the
Dreyfus Special Growth Fund since assuming management of the Fund this past
February. In the five months under its new management, the Fund has
experienced extremely volatile performance, significantly outperforming the
Standard & Poor's 500 Composite Stock Price Index (the "S&P 500"), the Fund's
benchmark, in April and May, but severely underperforming the benchmark in
June.
The unusual market volatility late in the six-month period had its
effect on overall performance. For the six-month period ended June 30, 1996,
Dreyfus Special Growth Fund provided a total return of 3.12% for its Investor
shares and 3.29% for its Class R shares.* This compared with a total return
of 10.09% for S&P 500.**
The following sections of this letter discuss the economy during the
fiscal half-year ended June 30, 1996, summarize market conditions during that
period, and outline the Fund's performance, portfolio make-up and investment
strategy.

THE ECONOMY

The U.S. economy has rebounded so far in 1996 following its midcycle
growth slowdown of last year. Yet overall corporate profit growth is slowing
this year. Although actual inflation remains steady, faster economic growth
has reignited fears of higher future inflation. This has pushed bond yields
higher and built expectations for a Federal Reserve Board tightening in
coming months. This year is the sixth expansion year for this business cycle,
and we believe that it will prove a long cycle.
Economic growth has accelerated since year-end. The first quarter's
2.3% real Gross Domestic Product growth brought with it a rebound of demand
that depleted inventories. Even stronger second quarter growth is apparent,
led by manufacturers' attempts to rebuild inventories. In addition, steady
job creation continues to support growth in consumer incomes and spending. As
yet, there are few indications of economic cooling. Some previously strong
capital goods sectors may now be slowing, but overall economic growth is
broadening to more industries. Despite better economic performance this year
than last, corporate profit growth may have peaked last year.
Although surging oil prices boosted overall inflation temporarily
this spring, other price inflation has remained steady this year.
Nevertheless, as we have mentioned, fears of higher future inflation have
again quickened, roused especially by the upward pressure on wages as the
labor market tightens. Thus, bond yields have risen substantially this year,
and short-term market rates also are higher. So far, long-term rates have
risen much more than short-term rates, forcing the yield curve to steepen. A
steep yield curve usually is supportive of sustained growth in the real
economy.
As we look forward, the question arises whether the higher interest
rates already in place and those which are expected will effectively cool the
economy. At present, however, any advance signs of an eventual cooling off in
the economy are hard to discern. The preoccupation at present is with the
economy's impressive strength, and the problems such growth could create.

MARKET OVERVIEW

The broad trend of the stock market was strongly upward during the
six months under review. However, there were many crosscurrents at work. Not
all stock groups benefitted equally. The blue chips in the Dow Jones
Industrial Average enjoyed solid advances for the six months, as did the
broader market as represented by the Nasdaq Composite Index and the S&P 500.
However, as spring turned into summer, technology stocks began to lag, and
small capitalization stocks were unable to maintain the very fast growth pace
of earlier months.
From time to time, unexpected signs of economic strength,
particularly employment and unemployment numbers, jolted the equity markets
with the specter of renewed inflation. Especially in the latter part of the
half-year, concerns about inflation and higher interest rates restrained
market performance in a number of industry categories.
Profits, always a major element in stock performance, continued to be
strong for a good part of the period. However, fear of rising labor costs and
intensified competition at home and abroad have cast some shadows over

<PAGE>

the profit outlook. This has been balanced, however, by the very
large sum of money that continues to be invested in equity mutual funds, much
of it from people planning for their retirement.

PORTFOLIO FOCUS

The Fund's new investment approach bases stock selection on a
forecast of future (12 to 18 months) relative earnings growth, by company.
This stems from our belief that relative stock performance is strongly
correlated to relative earnings performance. Final construction of the
portfolio rests on analysis of the fundamentals of companies that interest
us. The top-down earnings forecasts supplement the analysis of business
fundamentals.
Our selection approach leads to a growth-style portfolio which holds
a core of companies that we believe have above-average long-term growth
potential. When appropriate, we may supplement this with cyclical positions
when we see signs of a strong recovery in cyclical earnings. The portfolio
normally will hold medium and small capitalization stocks. Microcap
selections will be included when sufficient trading liquidity exists.
The Fund will invest in foreign stocks on occasion as an extension of
a predominantly domestic focus in our holdings, as an opportunity to
participate in a cyclical regional earnings recovery, and as an alternative
to U.S. stocks when American shares are relatively unattractive compared to
foreign markets. Index futures and options are available to the Fund to hedge
market risk. However, we currently intend to use such instruments sparingly.
As previously indicated, after we took over management in February,
the largest positions in the Fund experienced sharp rallies followed by
corrections, as did many smaller capitalization stocks. This also affected
several holdings of new stock offerings issued in recent months.
As the half-year ended, the Fund was underweighted, compared to the
S&P 500, in Consumer Durables, Electronic Technology, Process Industries and
Utilities. The Fund's weightings were greater than those in the S&P 500,
sometimes considerably greater, in the following sectors: Commerical
Services, Consumer Nondurables, Consumer Services, Health Services, Health
Technology, Industrial Services and Technology Services.
At the end of the fiscal period, the Fund's five largest holdings and
their percentage of the total portfolio were Ultrafem 7.8%, Fuisz
Technologies 5.5%, Quintel Entertainment 5.0%, Varco International 4.9% and
McAfee Associates 4.5%.
Dreyfus is very pleased that you are one of our investors. I will
exert my best efforts to provide you with rewarding results from your
investment.

Sincerely,

Michael L. Schonberg
Portfolio Manager
July 11, 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 U.S. stock market performance.

<PAGE>

Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
Statement of Investments June 30, 1996(Unaudited)

<TABLE>
<CAPTION>
Common Stocks--98.3% Shares Value
- -------------------------------------------------------------------------------------- --------- -----------
<S> <C> <C> <C>
Commercial Services--5.0% Quintel Entertainment.......................... 320,000(a) $ 3,360,000
-----------
Consumer Durables--1.5% Diamond Home Services.......................... 60,000(a) 1,005,000
-----------
Consumer Non-durables--14.6% Donnkenny...................................... 70,000(a) 1,365,000
Quiksilver..................................... 75,000(a) 2,250,000
Tommy Hilfiger................................. 15,000(a) 804,375
Ultrafem....................................... 265,000(a) 5,233,750
Vista 2000..................................... 310,000(a) 174,220
-----------
9,827,345
-----------

Consumer Services--12.3% Alma International............................. 300,000(a) 900,000
Casino Data Systems............................ 165,000(a) 2,495,625
Cinar Films, Cl. B............................. 120,000(a) 2,610,000
Koo Koo Roo.................................... 180,000(a) 1,642,500
Metromedia International Group................. 50,000(a) 612,500
-----------
8,260,625
-----------

Electronic Technology--8.0% C-Cube Microsystems............................ 50,000(a) 1,650,000
CMG Information Services....................... 36,000(a) 972,000
Gilat Satellite Networks....................... 30,000(a) 660,000
Personal Computer Products..................... 100,000(a) 228,125
TSL Holdings................................... 10(a) 0
Voice Control Systems.......................... 200,000(a) 1,825,000
-----------
5,335,125
-----------

Health Services--7.9% Core........................................... 175,000(a) 2,548,438
On-Gard Systems................................ 175,000(a) 831,250
OncorMed....................................... 100,000(a) 700,000
Pace Health Management Systems................. 200,000(a) 1,250,000
-----------
5,329,688
-----------

Health Technology--13.4% Amgen.......................................... 38,000(a) 2,052,000
Fuisz Technologies............................. 195,000(a) 3,705,000
Guilford Pharmaceuticals....................... 20,000(a) 475,000
MacroChem...................................... 300,000(a) 1,500,000
Teva Pharmaceutical Industries, A.D.R.......... 20,000 757,500
VIMRx Pharmaceuticals.......................... 100,000(a) 468,750
-----------
8,958,250
-----------

Industrial Services--11.9% Commodore Applied Technologies................. 110,000(a) 611,875
Commodore Applied Technologies (Warrants)...... 50,000(a) 87,500
Global Marine.................................. 200,000(a) 2,775,000
Sonat Offshore Drilling........................ 25,000 1,262,500
Varco International............................ 180,000(a) 3,262,500
-----------
7,999,375
-----------
</TABLE>

<PAGE>

Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1996(Unaudited)

<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- -------------------------------------------------------------------------------------- --------- -----------
<S> <C> <C> <C>

Process Industries--4.1% Chromatics Color Sciences International........ 210,000(a) $ 1,509,375
Ocal........................................... 230,000(a) 1,265,000
-----------
2,774,375
-----------

Technology--17.4% Aspen Technology............................... 25,000(a) 1,375,000
IMNET Systems.................................. 50,000(a) 1,525,000
McAfee Associates.............................. 62,000(a) 3,038,000
Mercury Interactive............................ 200,000(a) 2,750,000
Sterling Commerce.............................. 80,000(a) 2,970,000
-----------
11,658,000
-----------

Utilities--2.2% AMNEX.......................................... 100,000(a) 362,500
NorAm Energy................................... 100,000 1,087,500
-----------
1,450,000
-----------
TOTAL COMMON STOCKS
(cost $57,842,264)........................... $65,957,783
-----------
-----------

Principal
Short-Term Investments--1.7% Amount
- -------------------------------------------------------------------------------------- ------------
U.S. Treasury Bills: 5%, 9/12/96.................................... $ 49,000 $ 48,487
5.21%, 9/19/96................................. 1,118,000 1,105,109
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $1,153,813)............................ $ 1,153,596
-----------
-----------

TOTAL INVESTMENTS (cost $58,996,077).................................................. 100.0% $67,111,379
------ -----------
------ -----------

LIABILITIES, LESS CASH AND RECEIVABLES................................................ (.0%) $ (17,726)
------ -----------
------ -----------

NET ASSETS............................................................................ 100.0% $67,093,653
------ -----------
------ -----------
</TABLE>

Note to Statement of Investments;
- ------------------------------------------------------------------------------
(a) Non-income producing.

See notes to financial statements.

<PAGE>

Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities June 30, 1996 (Unaudited)

<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $58,996,077)--see Statement of Investments................ $67,111,379
Cash.............................................................. 6,787
Receivable for investment securities sold......................... 803,758
Receivable for shares of Beneficial Interest subscribed........... 7,521
Dividends receivable.............................................. 793
-----------
67,930,238
LIABILITIES:
Due to The Dreyfus Corporation--Note 2(a)......................... $144,661
Due to Distributor--Note 2(b)..................................... 13,583
Payable for investment securities purchased....................... 634,320
Payable for shares of Beneficial Interest redeemed................ 43,324
Trustees' fees payable--Note 2(c)................................. 697 836,585
-------- -----------
NET ASSETS............................................................ $67,093,653
-----------
-----------

REPRESENTED BY:
Paid-in capital................................................... $52,873,581
Accumulated investment (loss)..................................... (747,998)
Accumulated undistributed net realized gain on investments........ 6,852,776
Accumulated net unrealized appreciation on investments and
foreign currency transactions................................... 8,115,294
-----------
NET ASSETS at value................................................... $67,093,653
-----------
-----------
NET ASSET VALUE, offering and redemption price per share:
Investor Shares
unlimited number of shares of Beneficial Interest authorized
($62,054,507 / 3,185,045 shares of Beneficial Interest
outstanding)...................................................... $19.48
------
------
Class R Shares
unlimited number of shares of Beneficial Interest authorized
($5,039,146 / 255,310 shares of Beneficial Interest
outstanding)...................................................... $19.74
------
------
</TABLE>

See notes to financial statements.

<PAGE>

Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
Statement of Operations six months ended June 30, 1996 (Unaudited)

<TABLE>
<S> <C> <C>
INVESTMENT (LOSS):
Income:
Interest.............................................................. $ 79,859
Cash dividends (net of $937 foreign taxes withheld at source)......... 50,917
----------
Total Income.................................................... $ 130,776
Expenses:
Investment management fee--Note 2(a).................................. 392,357
Distribution fee (Investor shares)--Note 2(b)......................... 80,400
Trustees' fees and expenses--Note 2(c)................................ 8,152
----------
Total Expenses.................................................. 480,909
----------
INVESTMENT (LOSS)............................................... (350,133)
----------

REALIZED AND UNREALIZED GAIN ON INVESTMENTS--NOTE 3:
Net realized gain on investments and foreign currency
transactions (including option transactions).......................... $6,854,668
Net realized gain on forward currency exchange contracts................ 374
----------
Net Realized Gain..................................................... 6,855,042
Net unrealized (depreciation) on investments and foreign
currency transactions................................................. (4,453,626)
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 2,401,416
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,051,283
----------
----------
</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 December 31,
(Unaudited) 1995
---------------- -------------
<S> <C> <C>
OPERATIONS:
Investment (loss).................................................... $ (350,133) $ (397,865)
Net realized gain on investments..................................... 6,855,042 1,520,806
Net unrealized appreciation (depreciation) on investments for
the period......................................................... (4,453,626) 18,222,938
------------ ------------
Net Increase In Net Assets Resulting From Operations............. 2,051,283 19,345,879
------------ ------------

DIVIDENDS TO SHAREHOLDERS FROM;
Net realized gain on investments:
Investor Shares.................................................... (717,382) --
Class R Shares..................................................... (57,208) --
------------ ------------
Total Dividends.................................................. (774,590) --
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Investor Shares.................................................... 15,221,239 27,132,927
Class R Shares..................................................... 2,314,614 2,905,819
Dividends reinvested:
Investor Shares.................................................... 689,768 --
Class R Shares..................................................... 57,107 --
Cost of shares redeemed:
Investor Shares.................................................... (21,223,380) (43,483,029)
Class R Shares..................................................... (2,757,516) (6,009,549)
------------ ------------
(Decrease) In Net Assets From Beneficial Interest Transactions... (5,698,168) (19,453,832)
------------ ------------
Total (Decrease) In Net Assets................................. (4,421,475) (107,953)

NET ASSETS:
Beginning of period.................................................. 71,515,128 71,623,081
------------ ------------
End of period [including investment (loss):
($747,998) in 1996 and ($397,865) in 1995]......................... $ 67,093,653 $ 71,515,128
------------ ------------
------------ ------------
</TABLE>

Shares
-----------------------------------------------------------------
Investor Shares Class R Shares
----------------------------- -------------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30,1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
----------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold......................... 748,005 1,584,544 115,792 168,019
Shares issued for dividends
reinvested........................ 35,851 -- 2,932 --
Shares redeemed..................... (1,062,900) (2,544,847) (138,263) (352,040)
---------- ---------- -------- --------
Net (Decrease) In
Shares Outstanding.............. (279,044) (960,303) (19,539) (184,021)
---------- ---------- -------- --------
---------- ---------- -------- --------
</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
Financial Highlights

<TABLE>
<CAPTION>
Investor Shares
--------------------------------------------------------------------------------
Six Months Ended Year Ended December 31,
June 30, 1996 --------------------------------------------------------------
PER SHARE DATA: (Unaudited) 1995 1994(1)(2) 1993(1)(3) 1992(1) 1991(1)
--------------- ------ ---------- ---------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.11 $14.65 $17.97 $16.45 $14.59 $13.56
------ ------ ------ ------ ------ ------
Investment Operations:
Investment (loss)(4)..................... (.11) (.11) (.09) (.20) (.10) (.05)
Net realized and unrealized gain (loss)
on investments..................... .71 4.57 (3.18) 3.51 3.77 3.90
------ ------ ------ ------ ------ ------
Total from Investment
Operations....................... .60 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........................ (.23) -- (.05) (1.79) (1.62) (2.82)
Dividends in excess of net realized gain
on investments..................... -- -- (.00)(5) -- -- --
------ ------ ------ ------ ------ ------
Total Distributions.............. (.23) -- (.05) (1.79) (1.81) (2.82)
------ ------ ------ ------ ------ ------
Net asset value, end of period......... $19.48 $19.11 $14.65 $17.97 $16.45 $14.59
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN...................... 3.12%(6) 30.44% (18.22%) 20.01% 26.19% 29.22%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets(7).......................... .69%(6) 1.40% 1.42% 1.73% 1.57% 1.70%
Ratio of net investment (loss) to
average net assets..................... (.51%)(6) (.57%) (.51%) (1.09%) (.71%) (.34%)
Portfolio Turnover Rate.................. 89.36%(6) 68.91% 133.00% 94.00% 112.00% 141.00%
Average commission rate paid(8).......... $.5431 -- -- -- -- --
Net Assets, end of period
(000's Omitted)........................ $62,055 $66,201 $64,839 $83,879 $64,071 $41,522

<FN>
- ----------------
(1) On February 1, 1993 existing shares of the Fund were designated the Retail
Class and the Fund began offering the
Institutional Class and the Investment Class of shares. Effective April 4,
1994 the Retail and Institutional Classes were reclassified as a single class
of shares known as Investor Shares. 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) 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 year ended December 31, 1993 would have been 1.79%.
(8) For fiscal years beginning January 1, 1996, the Fund is required to
disclose its average commission paid per share for purchases and sales of
investment securities.
</TABLE>

See notes to financial statements.

<PAGE>
Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
Financial Highlights (continued)

<TABLE>
<CAPTION>
Class R Shares
----------------------------------------------------------
Six Months Ended Year Ended December 31, Period Ended
June 30, 1996 ----------------------- December 31,
PER SHARE DATA: (Unaudited) 1995 1994(1)(2) 1993(1)(3)
---------------- ------- ---------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period........... $19.33 $14.78 $18.06 $17.31
------ ------ ------ ------
Investment Operations:
Investment income (loss)--net(4)............... (.07) .03 (.02) (.10)
Net realized and unrealized gain (loss) on
investments.................................. .71 4.52 (3.21) 2.64
------ ------ ------ ------
Total from Investment Operations......... .64 4.55 (3.23) 2.54
------ ------ ------ ------
Distributions:
Dividends from net realized gain on investments (.23) -- (.05) (1.79)
Dividends in excess of net realized gain on
investments.................................. -- -- (.00)(5) --
------ ------ ------ ------
Total Distributions.................... (.23) -- (.05) (1.79)
------ ------ ------ ------
Net asset value, end of period................. $19.74 $19.33 $14.78 $18.06
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN........................... 3.29%(6) 30.79% (17.91%) 15.78%(6)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(7) .57%(6) 1.15% 1.15% 1.09%(6)
Ratio of net investment (loss) to average net
assets...................................... (.38%)(6) (.31%) (.24%) (.50%)(6)
Portfolio Turnover Rate....................... 89.36%(6) 68.91% 133.00% 94.00%(6)
Average commission rate paid(8)............... $.5431 -- -- --
Net Assets, end of period (000's Omitted)..... $5,039 $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) For fiscal years beginning January 1, 1996, the Fund is required to
disclose its average commission rate paid per share for purchases and sales
of investment securities.
</TABLE>

See notes to financial statements.

<PAGE>

Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. 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),
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 (including options)
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 exchange 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 investments 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 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.

<PAGE>

Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(d) Options: The Fund may write put options in order to gain exposure to
or protect against changes in the market.

As a writer of put options, the Fund receives a premium at the outset and
then bears the market risk of unfavorable changes in the price of the
financial instrument underlying the option. Generally, the Fund would incur a
gain, to the extent of the premium, if the price of underlying financial
instrument increases between the date the option is written and the date on
which the option is terminated. Generally, the Fund would realize a loss, if
the price of the financial instrument decreases between those dates. At June
30, 1996, there were no put options written outstanding.

(e) 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
June 30, 1996, there were no open forward currency exchange contracts.

(f) 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.

(g) 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 interest 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.

NOTE 2 -- Investment Management Fee And Other Transactions With Affiliates:

<PAGE>

Dreyfus Special Growth Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(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 six months ended June 30,
1996, the distribution fee for the Investor shares was $80,400.

(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 meeting 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:

(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, option transactions and forward currency
exchange contracts, during the six months ended June 30, 1996 amounted to
$60,839,867 and $64,802,376, respectively.

In addition, the following table summarizes the Fund's put options
written transactions for the six months ended June 30, 1996:

<TABLE>
<CAPTION>
Options Closed
------------------------
Number of Premiums Net Realized
OPTIONS WRITTEN: Contracts Received Cost Gain
----------- ---------- ---- ------------
<S> <C> <C> <C> <C>
Contracts outstanding December 31, 1995... -- $ --
Contracts written......................... 300 254,100
Contracts closed.......................... 300 254,100 $83,250 $170,850
---- --------- ------- --------
------- --------
Contracts outstanding June 30, 1996....... -- $ --
---- ---------
---- ---------
</TABLE>

(b) At June 30, 1996, accumulated net unrealized appreciation on
investments was $8,115,302, consisting of $15,444,950 gross unrealized
appreciation and $7,329,648 gross unrealized depreciation.

At June 30, 1996, 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>
[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 Bank, N. A.
One Mellon Bank Center
Pittsburgh, PA 15258

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 322/722SA966

<PAGE>
Semi-Annual Report

- ---------------------
Premier Limited Term
Government Securities
Fund
- ---------------------

June 30, 1996

[LOGO]

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
Letter to Shareholders

Dear Shareholder:
We are pleased to provide you with this report on the Premier Limited
Term Government Securities Fund. For its semi-annual reporting period ended
June 30, 1996, your Fund paid approximately the following income dividends:
$.359 per share for Class A shares, $.327 per share for Class B shares, $.327
per share for Class C shares, and $.373 per share for Class R shares. These
dividends amount to annualized distribution rates per share of 5.61%, 5.27%,
5.26% and 6.01% for Class A, Class B, Class C and Class R shares,
respectively.* During this six-month period, the Fund produced total returns
of -.71% for Class A shares, -1.04% for Class B shares, -.88% for Class C
shares and -.60% for Class R shares.** This compares to a return of -.01% for
the Lehman Brothers Intermediate Government Index, the Fund's benchmark.***

THE ECONOMY

So far this year, the economic story has been upbeat: solid growth,
strong gains in employment and low inflation. Yet along with this good news
has come the fear that the Federal Reserve Board (the "Fed") will tighten
monetary policy with the expectation that the continued economic expansion
could bring a resurgence in inflation. The growth in the economy has resulted
in strong gains in employment. Over recent months, these reports of new jobs
have been accompanied by rises in long-term interest rates in the expectation
that the Fed would soon act to cool down an economy that risks overheating.
To date, the Fed has refrained from any tightening moves. (The Fed cut rates
three times between last July and January of this year, and has since held
steady the Federal Funds rate at 5.25%, even as long-term rates in the bond
market have risen more than a full percentage point.)
The interplay between job growth and economic growth has become the
dominant force affecting how investors take the outlook for inflation and the
possibility that the Fed will raise short-term interest rates. Along with
handsome increases in new jobs have come solid gains in retail sales,
although many economists feel that heavy consumer debt burdens will act as a
constraint against any acceleration in growth. Automobile sales remain
strong, the third year in a row of steady growth for auto manufacturers. Yet,
the factors focused on by investors and the Fed may be different. Near the
end of the reporting period, the Fed's Beige Book, a survey of business
conditions in the 12 districts of the Federal Reserve, reported that the
economy was growing at a moderate pace and that despite the tightening labor
markets "indications of rising wages remain scattered." Recent statements by
officials of the Federal Reserve Board have suggested that "sustained
moderate growth" is the most likely path for the economy and that labor
markets, while tightening, do not yet indicate significant inflationary
pressures.
There seem to be few signs of inflation. Commodity and producer
prices remain subdued. Anecdotal reports from companies continue to attest to
their lack of ability to raise prices. Furthermore, some of the inflationary
consequences of running large budget deficits have eased due to the growth in
the economy. Higher than expected tax payments -- a result of economic growth
- -- have reduced the Federal budget deficit to the $130 billion level, the
lowest since the early 1980s.
Nevertheless, there are limits to non-inflationary economic
expansion. As always, we remain watchful for signs of price pressures that
could lead to a resurgence of inflation. For now, there are few indications
of that. In fact, there also appears to be a growing consensus that the rate
of economic growth could

<PAGE>
taper off in the second half of the year due to the effect of higher
long-term interest rates on certain key sectors of the economy like housing
and consumer spending.

MARKET ENVIRONMENT/PORTFOLIO ACTIVITY

In a dramatic reversal of trend, the bond market suffered significant
losses during the first half of 1996 because of the strengthening economy and
the related concern that the Federal Reserve would soon tighten monetary
policy. Since the beginning of this year, the yield on the benchmark 30-year
Treasury bond has risen almost one full percentage point. The corresponding
decline in bond prices more than offset the Fund's dividend income earned
during the reporting period.
The mortgage-backed sector was one of the better performing areas in
the bond market since the rise in interest rates reduced the rate of
home-owner prepayments. The yield advantage of mortgage securities over
Treasuries -- at its widest level in three years by year-end 1995 -- narrowed
over the succeeding six months because of this prepayment rate reduction. As
a result, the rise in interest rates affected mortgage-backed securities less
adversely than it did other Government securities. The Fund held approximately
15% of its assets in mortgage-backed securities during most of the reporting
period, a position that was reduced to about 7% by the end of the second
quarter. The remainder of the Fund's portfolio was invested in Treasuries.
The duration of the Fund was 3.02 years on June 30, 1996, a modest reduction
from 3.13 years of six months earlier and slightly less than the 3.16 year
duration of its benchmark index. The longer a fund's duration, the more
volatile the fund will be as interest rates move. In a rising interest rate
environment, a shorter duration generally is advantageous to a fund. The
reverse is true in a declining interest rate environment.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.

Very truly yours,

Almond G. Goduti
Portfolio Manager
July 15, 1996
New York, N.Y.

* Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period divided by the maximum
offering price per share at the end of the period in the case of Class A
shares, or the net asset value per share at the end of the period in the case
of Class B, Class C and Class R shares.
** Total return includes reinvestment of dividends and any capital gains
paid. These figures do not take into account the maximum initial sales charge
in the case of Class A shares, or the applicable contingent deferred sales
charge in the case of Class B and Class C shares.
*** SOURCE: LIPPER ANALYTICAL SERVICES, INC. Unlike the Fund, the Lehman
Brothers Intermediate Government Index is an unmanaged performance benchmark
for securities with maturities of between one and ten years, which does not
take into account charges, fees and other expenses.

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
Statement of Investments June 30, 1996(Unaudited)

<TABLE>
<CAPTION>
Principal
Notes and Bonds--98.1% Amount Value
- ---------------------------------------------------------------------- ----------- -----------
<S> <C> <C>
U.S. Treasury Notes--91.4%
5-1/2%, 4/15/2000................................................. $ 2,900,000 $ 2,813,906
5-3/4%, 8/15/2003................................................. 50,000 47,625
6-1/2%, 4/30/1999................................................. 495,000 497,707
7%, 4/15/1999..................................................... 2,800,000 2,850,750
7-1/8%, 10/15/1998................................................ 3,075,000 3,136,019
7-1/8%, 2/29/2000................................................. 1,400,000 1,432,156
7-1/4%, 8/15/2004................................................. 1,035,000 1,072,357
7-3/4%, 1/31/2000................................................. 1,800,000 1,876,782
7-7/8%, 1/15/1998................................................. 608,000 624,340
7-7/8%, 8/15/2001................................................. 415,000 439,706
-----------
Total U.S. Treasury Notes............................................. 14,791,348
-----------
-----------

Mortgage-Backed Securities--6.7%
Federal Home Loan Mortgage Corp.,
Participation Certificates;
11%, 11/1/2015.................................................... 4,867 5,416
-----------
Federal National Mortgage Association:
7%, 3/1/2026...................................................... 643,829 619,685
8-1/2% (a)........................................................ 413,000 426,679
-----------
1,046,364
-----------
Government National Mortgage Association I;
11-1/2%, 12/15/2015............................................... 26,907 30,481
-----------
Total Mortgage-Backed Securities...................................... 1,082,261
-----------
-----------
TOTAL INVESTMENTS
(cost $15,760,504)................................................ 98.1% $15,873,609
------ -----------
------ -----------

CASH AND RECEIVABLES (NET)............................................ 1.9% $ 315,460
------ -----------
------ -----------

NET ASSETS............................................................ 100.0% $16,189,069
------ -----------
------ -----------
</TABLE>

Note to Statement of Investments;
- ------------------------------------------------------------------------------
(a) Purchased on a forward commitment basis.

See notes to financial statements.

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities June 30, 1996 (Unaudited)

<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $15,760,504)--see Statement of Investments................ $15,873,609
Cash.............................................................. 72,183
Receivable for investment securities sold......................... 428,790
Interest receivable............................................... 289,223
Paydowns receivable............................................... 100
-----------
16,663,905
LIABILITIES:
Due to The Dreyfus Corporation--Note 2(a)......................... $ 14,811
Due to Distributor--Note 2(b)..................................... 3,286
Payable for investment securities purchased....................... 427,246
Payable for shares of Beneficial Interest redeemed................ 29,493 474,836
--------- -----------
NET ASSETS............................................................ $16,189,069
-----------
-----------
REPRESENTED BY:
Paid-in capital................................................... $16,366,154
Accumulated net realized (loss) on investments.................... (290,190)
Accumulated net unrealized appreciation on investments--Note 3.... 113,105
-----------
NET ASSETS at value................................................... $16,189,069
-----------
-----------
NET ASSET VALUE, per share:
Class A Shares
unlimited number of shares of Beneficial Interest authorized
($15,544,192 / 1,250,482 shares of Beneficial Interest
outstanding).................................................... $12.43
------
------
Class B Shares
unlimited number of shares of Beneficial Interest authorized
($463,277 / 37,289 shares of Beneficial Interest outstanding)... $12.42
------
------
Class C Shares
unlimited number of shares of Beneficial Interest authorized
($16.41 / 1.318 shares of Beneficial Interest outstanding)...... $12.45
------
------
Class R Shares
unlimited number of shares of Beneficial Interest authorized
($181,584 / 14,595 shares of Beneficial Interest outstanding)... $12.44
------
------
</TABLE>

See notes to financial statements.

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
Statement of Operations six months ended June 30, 1996 (Unaudited)

<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest Income......................................................... $491,424
Expenses:
Investment management fee--Note 2(a).................................. $ 43,024
Distribution fee--Note 2(b)........................................... 18,909
Trustees' fees and expenses--Note 2(c)................................ 1,597
Service fee--Note 2(b)................................................ 542
---------
Total Expenses.................................................. 64,072
--------
INVESTMENT INCOME--NET.......................................... 427,352

REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS--Note 3:
Net realized gain on investments........................................ $ 77,194
Net unrealized (depreciation) on investments............................ (595,634)
---------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (518,440)
--------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(91,088)
--------
--------

See notes to financial statements.

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets

</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 December 31,
(Unaudited) 1995
---------------- ------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 427,352 $ 968,416
Net realized gain (loss) on investments.............................. 77,194 (173,203)
Net unrealized appreciation (depreciation) on investments for the
period............................................................. (595,634) 1,508,417
----------- -----------
Net Increase (Decrease) In Net Assets Resulting From Operations.. (91,088) 2,303,630
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net:
Class A Shares..................................................... (407,971) (966,462)
Class B Shares..................................................... (11,259) (5,926)
Class C Shares..................................................... -- (1)
Class R Shares..................................................... (5,349) (1,188)
----------- -----------
Total Dividends.................................................. (424,579) (973,577)
----------- -----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A Shares..................................................... 2,268,141 1,733,856
Class B Shares..................................................... 266,906 286,680
Class R Shares..................................................... -- 180,000
Dividends reinvested:
Class A Shares..................................................... 359,741 857,024
Class B Shares..................................................... 5,873 2,838
Class R Shares..................................................... 5,349 1,187
Cost of shares redeemed:
Class A Shares..................................................... (1,645,152) (6,542,409)
Class B Shares..................................................... (68,399) (21,787)
Class R Shares..................................................... (15) --
----------- -----------
Increase (Decrease) In Net Assets From
Beneficial Interest Transactions............................... 1,192,444 (3,502,611)
----------- -----------
Total Increase (Decrease) In Net Assets........................ 676,777 (2,172,558)
NET ASSETS:
Beginning of period.................................................. 15,512,292 17,684,850
----------- -----------
End of period [including distributions in excess of investment
income--net; ($2,773) in 1995]..................................... $16,189,069 $15,512,292
----------- -----------
----------- -----------
</TABLE>

See notes to financial statements.

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)

Shares
---------------------------------------------------------------------
Class A Class B
-------------------------------- --------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold......................... 183,447 141,378 20,989 22,818
Shares issued for dividends reinvested 28,604 68,726 468 224
Shares redeemed..................... (129,980) (529,321) (5,489) (1,722)
-------- -------- ------ ------
Net Increase (Decrease)
In Shares Outstanding........... 82,071 (319,217) 15,968 21,320
-------- -------- ------ ------
-------- -------- ------ ------
</TABLE>

Shares
---------------------------------------------------------------------
Class C Class R
-------------------------------- --------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS (continued):
Shares sold......................... -- -- -- 14,077
Shares issued for dividends reinvested -- -- 425 93
Shares redeemed..................... -- -- (1) --
-------- -------- ------ ------
Net Increase
In Shares Outstanding........... -- -- 424 14,170
-------- -------- ------ ------
-------- -------- ------ ------
</TABLE>

See notes to financial statements.

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
Financial Highlights

<TABLE>
<CAPTION>
Class A Shares
--------------------------------------------------------------------------
Six Months Ended Year Ended December 31,
June 30, 1996 ------------------------------------------------------
PER SHARE DATA: (Unaudited) 1995 1994(1)(2) 1993(1) 1992 1991
---------------- ------ ---------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period......................... $12.88 $11.89 $13.14 $12.76 $12.81 $11.99
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net.............. .36 .74 .68(3) .75(3) .72 .74
Net realized and unrealized
gain (loss) on investments........ (.45) 1.00 (1.23) .40 (.05) .82
------ ------ ------ ------ ------ ------
Total from Investment
Operations.................... (.09) 1.74 (.55) 1.15 .67 1.56
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment
income--net....................... (.36) (.75) (.70) (.74) (.72) (.74)
Dividends from net realized
gain on investments............... -- -- -- (.03) -- --
Dividends in excess of net realized
gain on investments............... -- -- -- (.00)(4) -- --
------ ------ ------ ------ ------ ------
Total Distributions............... (.36) (.75) (.70) (.77) (.72) (.74)
------ ------ ------ ------ ------ ------
Net asset value, end of period...... $12.43 $12.88 $11.89 $13.14 $12.76 $12.81
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(5).............. (1.42%)(6) 14.98% (4.24%) 9.10% 5.47% 13.51%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets........................ .85%(6) .85% 1.02%(7) 1.40%(7) 1.67% 1.91%
Ratio of net investment income to
average net assets................ 5.76%(6) 5.98% 5.59% 5.56% 5.70% 6.09%
Portfolio Turnover Rate............. 24.71%(8) 171.63% 165.00% 74.00% 30.00% 50.00%
Net Assets, end of period
(000's Omitted)................... $15,544 $15,055 $17,685 $8,776 $22,914 $15,797
<FN>
- ------------------------
(1) On February 1, 1993 existing shares of the Fund were designated the
Retail Class and the Fund began offering the Institutional Class of shares.
Effective April 4, 1994 the Retail and Institutional Classes were
reclassified as a single class of shares known as the Investor shares and the
Fund began offering Trust shares. On October 17, 1994 Investor shares were
redesignated Class A shares and Trust shares were redesignated Class R
shares. The amounts shown for the year ended December 31, 1994 were calculated
using the performance of a Retail share outstanding from January 1, 1994 to A
pril 3, 1994, and the performance of an Investor (now Class A) share
outstanding from April 4, 1994 to December 31, 1994. The Financial Highlights
for the year ended December 31, 1993 and prior years are based upon a Retail
share outstanding.
(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) Net investment income before voluntary waiver of fees and/or
reimbursement of expenses by the investment adviser for the year ended
December 31, 1994 was $.67. Net investment income before waiver of fees and
or reimbursement of expenses by the investment adviser, transfer agent, and
distributor, for the year ended December 31, 1993 was $.70.
(4) Amount represents less than $.01 per share.
(5) Exclusive of sales load.
(6) Annualized.
(7) Without the voluntary reimbursement and/or waiver of fees by the
investment adviser and transfer agent, the ratio of expenses to average net
assets for the years ended December 31, 1994 and 1993 would have been 1.09%
and 1.74% respectively.
(8) Not annualized.
</TABLE>

See notes to financial statements.

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
Financial Highlights (continued)

<TABLE>
<CAPTION>
Class B Shares Class C Shares
----------------------------- -------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31 June 30, 1996 December 31,
PER SHARE DATA: (Unaudited) 1995(2) (Unaudited) 1995(2)
---------------- ----------- ---------------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period... $12.88 $11.89 $12.89 $11.89
------ ------ ------ ------
Investment Operations:
Investment income--net................. .33 .68 .32 .68
Net realized and unrealized
gain (loss) on investments............ (.46) .99 (.43) 1.00
------ ------ ------ ------
Total from Investment Operations..... (.13) 1.67 (.11) 1.68
------ ------ ------ ------
Distributions;
Dividends from investment income--net.. (.33) (.68) (.33) (.68)
------ ------ ------ ------
Net asset value, end of period......... $12.42 $12.88 $12.45 $12.89
------ ------ ------ ------
------ ------ ------ ------

TOTAL INVESTMENT RETURN(3)................. (2.09%)(4) 14.40% (1.76%)(4) 14.48%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.35%(4) 1.35% 1.35%(4) 1.35%
Ratio of net investment income to
average net assets................... 5.24%(4) 5.17% 3.42%(4) 4.83%
Portfolio Turnover Rate................ 24.71%(5) 171.63% 24.71%(5) 171.63%
Net Assets, end of period
(000's Omitted)...................... $463 $274 -- --
<FN>
- -------------
(1) Financial Highlights for the period ended December 31, 1994 for Class B
and Class C shares are not presented because no shares had been issued to the
public as of this date.
(2) On December 19, 1994 the Fund commenced offering Class B and Class C
shares.
(3) Exclusive of sales load.
(4) Annualized.
(5) Not annualized.
</TABLE>

See notes to financial statements.

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
Financial Highlights (continued)

<TABLE>
<CAPTION>
Class R Shares
---------------------------------
Six Months Ended Year Ended
June 30, 1996 December 31,
PER SHARE DATA: (Unaudited) 1995(2)
---------------- -----------
<S> <C> <C>
Net asset value, beginning of period........................... $12.89 $11.89
------ ------
Investment Operations:
Investment income--net......................................... .38 .77
Net realized and unrealized gain (loss) on investments......... (.46) 1.01
------ ------
Total from Investment Operations............................. (.08) 1.78
------ ------
Distributions;
Dividends from investment income-net........................... (.37) (.78)
------ ------
Net asset value, end of period................................. $12.44 $12.89
------ ------
------ ------
TOTAL INVESTMENT RETURN............................................ (1.20%)(3) 15.34%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........................ .60%(3) .64%
Ratio of net investment income to average net assets........... 6.00%(3) 6.20%
Portfolio Turnover Rate........................................ 24.71%(4) 171.63%
Net Assets, end of period (000's Omitted)...................... $182 $183
<FN>
- -------------
(1) Financial Highlights for the period ended December 31, 1994 for Class R
shares are not presented because no shares had been issued to the public as
of this date.
(2) On April 4, 1994 the Fund commenced offering Trust shares which were
redesignated Class R shares on October 17, 1994.
(3) Annualized.
(4) Not annualized.
</TABLE>

See notes to financial statments.

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

The Dreyfus/Laurel Funds Trust (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company and operates as a series company currently offering four
series including the Premier Limited Term Government Securities Fund (the
"Fund"). The Fund's investment objective is to seek high current income
consistent with the preservation of capital by investing primarily in debt
obligations of varying maturities issued or guaranteed by the U.S. Government
or its agencies or instrumentalities. The Dreyfus Corporation ("Manager")
serves as the Fund's investment manager. 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 Fund currently offers four classes of
shares: Class A, Class B and Class C shares are sold primarily to the retail
investors through financial intermediaries and bear a distribution fee. Class
A shares are sold with a front-end sales charge, while Class B and Class C
shares are subject to a contingent deferred sales charge ("CDSC"). 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 distribution fees and
voting rights on matters affecting a single class.
Investment income, net of expenses (other than class specific expenses),
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: The Fund's investments (excluding U.S.
Government obligations and short-term investments) are valued each business
day by an independent pricing service ("Service") approved by the Board of
Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the
Service are valued at the mean between the quoted bid prices (as obtained by
the Service from dealers in such securities) and asked prices (as calculated
by the Service based upon its evaluation of the market for such securities).
Other investments are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
securities of comparable quality, coupon, maturity and type; indications as
to values from dealers; and general market conditions. Investments in U.S.
Government obligations are valued at the mean between quoted bid and asked
prices. Short-term investments are carried at amortized cost, which approximat
es value.
(b) Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, including, where applicable, amortization of discount and premium on
investments, is recognized on the accrual basis.
(c) Distributions to shareholders: It is the policy of the Fund to
declare dividends daily from investment income-net. Such dividends are paid
monthly. Dividends from net realized capital gain are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(d) 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.
The Fund has an unused capital loss carryover of approximately $367,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1995. If not
applied, $175,000 of the carryover expires in fiscal 2002 and $192,000 of the
carryover expires in fiscal 2003.

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 .60% of the value of the Fund's
average daily net assets. Out of its fee, the Manager pays all of the
expenses of the Fund except brokerage fees, taxes, interest, Rule 12b-1
distribution fees and expenses, fees and expenses of non-interested Trustees
(including counsel fees) and extraordinary expenses. In addition, the Manager
is required to reduce its fee in an amount equal to the Fund's allocable
portion of fees and expenses of the non-interested Trustees (including
counsel).
(b) Distribution and service plan: The Fund has adopted a Distribution
Plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its
Class A, B and C shares. Under the Plan, the Fund may pay annually up to .25%
of the value of its average daily net assets attributable to its Class A
shares to compensate the Distributor and Dreyfus Service Corporation, an
affiliate of the Manager, for shareholder servicing activities and the
Distributor for activities and expenses primarily intended to result in the
sale of Class A shares. Under the Plan, the Fund may pay the Distributor for
distributing the Fund's Class B and Class C shares at an aggregate annual
rate of .50% of the value of the average daily net assets of Class B and
Class C shares. Class B and Class C shares are also subject to a service plan
adopted pursuant to Rule 12b-1, under which the Fund pays Dreyfus Service
Corporation or the Distributor for providing certain services to the holders
of Class B and Class C shares a fee at the annual rate of .25% of the value
of the average daily net assets of Class B and Class C shares. Class R shares
bear no service or distribution fee. For the six months ended June 30, 1996,
the distribution fee for Class A and Class B shares was $17,826 and $1,083,
respectively. For the six months ended June 30, 1996, the service fee for
Class B shares was $542.

<PAGE>
Premier Limited Term Government Securities Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Under its terms, the Plan shall remain in effect from year to year,
provided such continuance is approved annually by a vote of majority of those
Trustees who are not "interested persons" of the Trust and who
have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan.
(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 meeting 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 (including paydowns) of
investment securities, excluding short-term securities, during the six months
ended June 30, 1996, amounted to $4,844,209 and $3,657,389, respectively.
At June 30, 1996, accumulated net unrealized appreciation on investments
was $113,105, consisting of $197,033 gross unrealized appreciation and
$83,928 gross unrealized depreciation.
At June 30, 1996, 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>
Premier Limited Term
Government Securities Fund
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. PLGSA966

<PAGE>

Semi-Annual Report

Premier Managed
Income Fund

June 30, 1996

<PAGE>

Premier Managed Income Fund
Letter to Shareholders

Dear Shareholder:
We are pleased to provide you with this report on the Premier Managed
Income Fund. For its semi-annual reporting period ended June 30, 1996, your
Fund paid approximately the following income dividends: $.336 per share for
Class A shares, $.295 per share for Class B shares, $.292 per share for Class
C shares and $.349 per share for Class R shares. These amounts produced
annualized distribution rates per share of 6.13%, 5.64%, 5.58% and 6.68% for
Class A, Class B, Class C and Class R shares, respectively.* During this
six-month period, the Fund produced total returns of -2.13% for Class A
shares, -2.58% for Class B shares, -2.61% for Class C shares and -2.19% for
Class R shares.** This compares to -1.21% for the Lehman Brothers Aggregate
Bond Index, the Fund's benchmark index.***
THE ECONOMY
So far this year, the economic story has been positive: solid growth,
strong gains in employment and low inflation. Yet along with this good news
has come the fear that the Federal Reserve Board (the "Fed") will tighten
monetary policy with the expectation that the continued economic expansion
could bring a resurgence in inflation. The growth in the economy has resulted
in strong gains in employment. Over recent months, these reports of new jobs
have been accompanied by rises in long-term interest rates in the expectation
that the Fed would soon act to cool down an economy that risks overheating.
To date, the Fed has refrained from any tightening moves. The Fed cut rates
three times between last July and January of this year, and has since held
steady the Federal Funds rate at 5.25%, even as long-term rates in the bond
market have risen more than a full percentage point.
The interplay between job growth and economic growth has become the
dominant force affecting how investors think about the outlook for inflation
and the possibility that the Fed will raise short-term interest rates. Along
with handsome increases in new jobs have come solid gains in retail sales,
although many economists feel that heavy consumer debt burdens will act as a
constraint against any acceleration in growth. Automobile sales remain
strong, the third year in a row of steady growth for auto manufacturers. Yet,
the factors focused on by investors and the Fed may be different. Near the
end of the reporting period, the Fed's Beige Book, a survey of business
conditions in the 12 districts of the Federal Reserve, reported that the
economy was growing at a moderate pace and that despite the tightening labor
markets "indications of rising wages remain scattered." Recent statements by
officials of the Federal Reserve Board have suggested that "sustained
moderate growth" is the most likely path for the economy and that labor
markets, while tightening, do not yet indicate significant inflationary
pressures.
There seem to be few signs of inflation. Commodity and producer
prices remain subdued. Anecdotal reports from companies continue to attest to
their lack of ability to raise prices. Furthermore, some of the inflationary
consequences of running large budget deficits have eased due to the growth in
the economy. Higher than expected tax payments -- a result of economic growth
- -- have reduced the Federal budget deficit to the $130 billion level, the
lowest since the early 1980s.
Nevertheless, there are limits to non-inflationary economic
expansion. As always, we remain watchful for signs of price pressures that
could lead to a resurgence of inflation. For now, there are few indications
of that. In fact, there also appears to be a growing consensus that the rate
of economic growth could taper off in the second half of the year due to the
effect of higher long-term interest rates on certain key sectors of the
economy like housing and consumer spending.

<PAGE>

MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
In a dramatic reversal of trend, the bond market suffered significant
losses during the first half of 1996 because of the strengthening economy and
the related concern that the Federal Reserve would soon tighten monetary
policy. Since the beginning of this year, the yield on the benchmark 30-year
Treasury bond has risen almost one full percentage point. The corresponding
decline in bond prices more than offset the Fund's dividend income that was
earned during the reporting period.
The mortgage-backed sector was one of the better performing areas in
the bond market since the rise in interest rates reduced the rate of
home-owner prepayments. The yield advantage of mortgage securities over
Treasuries -- at its widest level in three years by year-end 1995 -- narrowed
over the succeeding six months because of this prepayment rate reduction. As
a result, the rise in interest rates negatively affected mortgage-backed
securities to a lesser degree than other Government securities. However, the
duration of the Fund was 4.84 years on June 30, 1996, slightly greater than
the 4.76 year duration of its benchmark index. The longer a fund's duration,
the more volatile the fund will be as interest rates move. In a rising
interest rate environment, a shorter duration generally is advantageous to a
fund. The reverse is true in a declining interest rate environment. Since the
Fund's duration was longer than that of the Lehman Brothers Aggregate Bond
Index, the rise in interest rates negatively impacted the Fund to a greater
degree than the benchmark.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.

Very truly yours,

Arthur J. MacBride III
Almond G. Goduti
Portfolio Managers

July 15, 1996
New York, N.Y.

* Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period divided by the maximum
offering price per share at the end of the period in the case of Class A
shares, or the net asset value per share at the end of the period in the case
of Class B, Class C and Class R shares.
** Total return includes reinvestment of dividends and any capital gains
paid. These figures do not take into account the maximum initial sales charge
in the case of Class A shares, or the applicable contingent deferred sales
charge in the case of Class B and Class C shares.
*** SOURCE: LIPPER ANALYTICAL SERVICES, INC. Unlike the Fund, the Lehman
Brothers Aggregate Bond Index is a widely accepted, unmanaged index of
corporate, government and government agency debt instruments. The index does
not take into account charges, fees and other expenses.

<PAGE>

Premier Managed Income Fund
Statement of Investments June 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
Principal
Convertible Subordinated Debentures--.8% Amount Value
------------ -----------
<S> <C> <C>
Foreign; Rogers Communications,
2%, 2005
(cost $722,178).......................... $ 1,405,000 $ 734,112
-----------
-----------
Bonds and Notes--96.1%
Aircraft & Aerospace--.3% BE Aerospace,
Sr. Sub. Notes, 9-7/8%, 2006........... 300,000 296,625
-----------
Banking--1.3% First USA Bank,
Medium-Term Notes, 8.10%, 1997......... 710,000 718,523
NationsBank,
Sub. Notes, 6-1/2%, 2006............... 522,000 490,046
-----------
1,208,569
-----------
Broadcasting--.9% JCAC (Gtd. by Jacor Communications),
Sr. Sub. Notes, 10-1/8%, 2006.......... 800,000 798,000
-----------
Building & Construction--.1% American Standard,
Sr. Notes, 10-7/8%, 1999............... 100,000 105,750
-----------
Consumer--6.1% Cablevision Systems,
Sr. Sub. Notes, 9-7/8%, 2006........... 250,000 242,187
Century Communications,
Sr. Notes 9-1/2%, 2000................. 600,000 600,000
Comcast,
Sr. Sub. Deb., 9-3/8%, 2005............ 400,000 389,000
Federated Department Stores, Sr. Notes:
10%, 2001.............................. 840,000 895,650
8-1/8%, 2002........................... 125,000 124,687
Kroger,
Sr. Secured Deb., 8-1/2%, 2003......... 100,000 101,000
Loewen Group International,
Ser. I, Sr. Gtd. Notes, 7-1/2%, 2001... 200,000(a) 197,000
Safeway,
Sr. Sub. Deb., 9.65%, 2004............. 150,000 161,812
Sears Roebuck Acceptance,
Medium-Term Notes:
Ser.I, 5.60%, 1998.................. 535,000 524,825
Ser.I, 5.71%, 2001.................. 305,000 291,114
Ser.II, 6.69%, 2001................. 930,000 921,942
Southland,
Sr. Sub. Deb., 5%, 2003............... 250,000 194,688
Tele-Communications,
Medium-Term Notes, 7.13%, 1998........ 100,000 100,407
WestPoint Stevens,
Sr. Notes, 8-3/4%, 2001................ 890,000 885,550
-----------
5,629,862
-----------

<PAGE>

Premier Managed Income Fund
Statement of Investments (continued) June 30, 1996 (Unaudited)

Principal
Bonds and Notes (continued) Amount Value
------------ -----------
Finance--9.1% Aetna/Travelers Life and Casualty,
Notes, 6-3/4%, 2001............................ $ 380,000 $ 377,967
H.F. Ahmanson & Co.,
Medium-Term Notes, Ser. A, 7.65%, 2000.......... 630,000 646,929
Lehman Brothers,
Sr. Sub. Notes, 6-1/8%, 2001.................... 400,000 384,613
Lehman Brothers Holdings,
Medium-Term Notes:
Ser. D, 6-1/8%, 1998.......................... 230,000 226,374
Ser. E, 6.65%, 1998........................... 615,000 614,514
Lincoln National,
Deb., 7-1/4%, 2005.............................. 770,000 758,778
McDonnell Douglas Financial Services,
Medium-Term Notes, Ser. B, 6.53%, 1998.......... 245,000(a) 245,055
Merrill Lynch & Co.,
Notes, 7-3/8%, 2006............................. 670,000 667,895
Mesa Operating,
Sr. Sub. Notes, 10-5/8%, 2006................... 800,000 809,000
Paine Webber Group,
Medium-Term Sr. Notes, Ser. C, 7.31%, 2000...... 1,750,000 1,748,591
Prudential Insurance Company of America,
Surplus Notes, 7.65%, 2007...................... 935,000(a) 926,798
Smith Barney Holdings,
Notes, 7-7/8%, 1999............................. 1,000,000 1,032,976
-----------
8,439,490
-----------

Finance/Asset Backed--3.6% EQCC Home Equity Loan Trust,
Asset Backed Ctfs.:
Ser. 1993-3, 5.15%, 2008...................... 762,711 717,513
Ser. 1996-1, Cl. A-2, 5.82%, 2009............. 627,000 606,898
TMS Home Equity Trust,
Asset Backed Ctfs:
Ser. 1994-B, Cl. A-4, 7.60%, 2021............. 359,000 362,619
Ser. 1994-C, Cl. A-4, 7.80%, 2021............. 245,000 249,991
UACSC 1996-B Auto Trust,
Automobile Receivable Pass-Through Ctfs.,
Cl. A, 6.45%, 2003............................ 856,932 854,791
UCFC Acceptance, 1994-C1,
Home Equity Loan Pass-Through Ctfs.,
8.075%, 2014.................................... 525,000 540,839
-----------
3,332,651
-----------
Hospital Related--.4% Universal Health Services,
Sr. Notes, 8-3/4%, 2005......................... 380,000 373,350
-----------

<PAGE>

Premier Managed Income Fund
Statement of Investments (continued) June 30, 1996 (Unaudited)
Principal
Bonds and Notes (continued) Amount Value
------------ -----------
Industrial--8.4% ADT Operations,
Sr. Notes (Gtd. by ADT Ltd.), 8-1/4%, 2000...... $ 950,000 $ 978,719
American Home Products,
Notes, 7.70%, 2000.............................. 516,000 532,530
Jones Intercable,
Sr. Notes, 9-5/8%, 2002......................... 900,000 918,000
Lear Seating,
Sub. Notes, 8-1/4%, 2002........................ 340,000 323,850
Lenfest Communications,
Sr. Notes, 8-3/8%, 2005......................... 742,000 679,858
Lockheed Martin:
Gtd. Deb., 7-3/4%, 2026......................... 1,235,000 1,227,684
Gtd. Notes, 7-1/4%, 2006........................ 405,000 402,707
Oregon Steel Mills,
First Mortgage Notes, 11%, 2003................. 400,000 412,500
Paging Network,
Sr. Sub. Notes, 8-7/8%, 2006.................... 850,000 774,562
Tenet Healthcare,
Sr. Notes, 9-5/8%, 2002......................... 620,000 658,750
USG,
Sr. Notes, Ser. B, 9-1/4%, 2001................. 400,000 410,000
Valassis Inserts,
Sr. Sub. Notes, 9-3/8%, 1999.................... 440,000 446,549
-----------
7,765,709
-----------

Oil and Gas--1.7% Atlantic Richfield,
Deb., 9-7/8%, 2016............................. 600,000 739,345
Chesapeake Energy,
Sr. Notes, 9-1/8%, 2006........................ 726,000 718,740
Norcen Energy Resources Ltd.,
Deb., 7-3/8%, 2006............................. 160,000 158,055
-----------
1,616,140
-----------
Transportation--.9% General Motors,
Notes, 7.10%, 2006............................. 640,000 628,000
Southern Pacific Rail,
Sr. Notes, 9-3/8%, 2005........................ 225,000 235,125
-----------
863,125
-----------
Utilities--4.8% 360 Communications,
Sr. Notes, 7-1/8%, 2003........................ 225,000 216,101
El Paso Electric,
First Mortgage Bonds, Ser. A, 7-1/4%, 1999..... 740,000 732,600
Ferrellgas Partners Finance/Partners, L.P.,
Sr. Secured Notes, 9-3/8%, 2006................ 785,000(a) 761,450
MFS Communications,
Sr. Discount Notes, Zero Coupon, 2001......... 1,325,000(b) 804,938

<PAGE>

Premier Managed Income Fund
Statement of Investments (continued) June 30, 1996 (Unaudited)
Principal
Bonds and Notes (continued) Amount Value
------------ -----------
Utilities (continued) NorAm Energy,
Notes, 7-1/2%, 2000............................ $ 100,000 $ 100,343
Ohio Edison,
First Mortgage Bonds, 8-3/4%, 1998............. 110,000 113,089
ProNet Communications,
Sr. Sub. Notes, 10-7/8%, 2006.................. 400,000 385,000
Vanguard Cellular Systems,
Sr. Deb., 9-3/8%, 2006......................... 897,000 874,575
Western Wireless,
Sr. Sub. Notes, 10-1/2%, 2006.................. 475,000 475,594
-----------
4,463,690
-----------
Foreign--10.7% Aegon N.V.,
Sub. Notes, 8%, 2006........................... 972,000 1,015,720
BHP Finance (USA) Ltd.
(Gtd. by Broken Hill Proprietary Ltd.),
Notes, 6.69%, 2006............................. 967,000 922,538
Bangkok Bank plc,
Sub. Notes, 8-1/4%, 2016....................... 925,000(a) 918,525
Carter Holt Harvey Ltd.,
Sr. Notes, 8-7/8%, 2004........................ 381,000 415,654
China International Trust and Investment,
Bonds, 6-7/8%, 2003............................ 1,000,000 941,539
FBG Finance Ltd.
(Gtd. by Foster's Brewing Group Ltd.),
Notes, 7-7/8%, 2016............................ 580,000(a) 577,100
Hanson Overseas B.V.,
Sr. Notes (Gtd. by Hanson plc), 6-3/4%, 2005... 619,000 594,788
International Semi-Tech Microelectronics,
Sr. Secured Discount Notes,
Zero Coupon, 2000.............................. 1,250,000(c) 743,750
Malayan Banking Berhad,
Sub. Notes, 7-1/8%, 2005....................... 160,000 156,045
Midland Bank plc,
Sub. Notes, 7-5/8%, 2006....................... 519,000 525,298
Philips Electronics N.V.,
Notes, 7.20%, 2006............................. 280,000(d) 279,191
Province of Ontario,
Bonds, 6%, 2006................................ 530,000 487,446
Repsol International Finance B.V.,
Notes (Gtd. by Repsol, S.A.), 7%, 2005......... 1,027,000 1,017,431
Rogers Cablesystems Ltd.,
Sr. Secured Second Priority Notes, 9-5/8%, 2002 225,000 223,313
Stone-Consolidated,
Sr. Secured Notes, 10-1/4%, 2000............... 470,000 487,625
Teekay Shipping,
First Preferred Ship Mortgage Notes,
8.32%, 2008.................................... 100,000 93,750

<PAGE>

Premier Managed Income Fund
Statement of Investments (continued) June 30, 1996 (Unaudited)
Principal
Bonds and Notes (continued) Amount Value
------------ -----------
Foreign (continued) Wharf Capital International Ltd.,
Gtd. Notes, 8-7/8%, 2004....................... $ 490,000 $ 501,760
-----------
9,901,473
-----------
U.S. Government
and Agencies--47.8% Federal National Mortgage Association:
6-1/2%, 4/1/2003-4/1/2026...................... 3,408,943 3,233,738
7%, 2/1/2011-10/1/2025......................... 8,071,348 7,891,669
7-1/2%, 4/1/2005-4/1/2011...................... 3,953,445 3,971,312
8%, 10/1/2010-6/1/2026......................... 7,724,084 7,832,145
8%, 6/20/2026.................................. 2,276,000(e) 2,290,931
8-1/2%, 7/1/2011............................... 4,399,000(e) 4,544,695
8-1/2%, 6/1/2026............................... 3,106,455 3,189,925
9%, 6/1/2026................................... 1,450,215 1,513,662
14-3/4%, 8/1/2012.............................. 37,898 43,560
Real Estate Mortgage Investment
Conduit Trust, Pass-Through Ctfs.
(Collateralized by FNMA Pass-Through
Ctfs.), Ser. G92-20, Cl. SA, 499.88%,
2022 (Interest Only Obligation)................ (f) 207,758
U.S. Treasury Bonds:
7-7/8%, 8/15/2001.............................. 130,000 137,739
7-1/4%, 5/15/2016.............................. 133,000 136,221
7-1/8%, 2/15/2023.............................. 3,602,000 3,642,523
U.S. Treasury Notes:
6-7/8%, 3/31/1997.............................. 522,000 526,567
7-1/4%, 2/15/1998.............................. 2,659,000 2,706,363
7-1/4%, 8/15/2004.............................. 2,353,000 2,437,929
-----------
44,306,737
-----------
TOTAL BONDS AND NOTES
(cost $90,134,933)............................. $89,101,171
-----------
-----------

Short-Term Investments--.6%
Commercial Paper; Ford Motor Credit,
5-1/2%, 7/1/1996
(cost $584,000)................................ $ 584,000 $ 584,000
-----------
-----------
TOTAL INVESTMENTS (cost $91,441,111)............................................. 97.5% $90,419,283
------ -----------
------ -----------
CASH AND RECEIVABLES (NET)....................................................... 2.5% $ 2,299,368
------ -----------
------ -----------
NET ASSETS....................................................................... 100.0% $92,718,651
------ -----------
------ -----------
</TABLE>

<PAGE>

Premier Managed Income Fund

Notes to Statement of Investments:
(a) 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 June 30, 1996,
these securities amounted to $3,625,928 or 3.9% of net assets.
(b) Zero coupon until 1/15/2001, date on which a stated coupon rate of 87/8%
becomes effective; the stated maturity is 1/15/2006.
(c) Zero Coupon until 8/15/2000, date on which a stated coupon rate of 111/2%
becomes effective; the stated maturity date is 8/15/2003.
(d) Reflects date security can be redeemed at holders' option; the stated
maturity date is 6/1/2026.
(e) Purchased on a forward commitment basis.
(f) Nominal face $16,822

See notes to financial statements.

<PAGE>
<TABLE>
Premier Managed Income Fund
Statement of Assets and Liabilities iabilities June 30, 1996 (Unaudited)

<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $91,441,111)---ee Statement of Investmesnts..................... $ 90,419,283
Cash.................................................................... 419,848
Receivable for investment securities sold............................... 12,063,530
Interest receivable.................................................... 1,315,781
------------
104,218,442
LIABILITIES:
Due to The Dreyfus Corporation--Note 2(a)............................... $ 107,710
Due to Distributor---Note 2(b).......................................... 18,481
Payable for investment securities purchased............................. 11,286,447
Payable for shares of Beneficial Interest redeemed...................... 87,153 11,499,791
----------- ------------
NET ASSETS................................................................ $ 92,718,651
------------
------------
REPRESENTED BY:
Paid-in capital......................................................... $102,194,899
Accumulated net realized (loss) on investments.......................... (8,454,420)
Accumulated net unrealized (depreciation) on investments----Note 3...... (1,021,828)
------------
NET ASSETS at value....................................................... $ 92,718,651
------------
------------
NET ASSET VALUE, per share:
Class A Shares
unlimited number of shares of Beneficial Interest authorized
($77,575,851 / 7,390,538 shares of Beneficial Interest outstanding)... $10.50
------
------
Class B Shares
unlimited number of shares of Beneficial Interest authorized
($3,457,072 / 329,310 shares of Beneficial Interest outstanding)...... $10.50
------
------
Class C Shares
unlimited number of shares of Beneficial Interest authorized
($133,399 / 12,706 shares of Beneficial Interest outstanding)......... $10.50
------
------
Class R Shares
unlimited number of shares of Beneficial Interest authorized
($11,552,329 / 1,100,769 shares of Beneficial Interest outstanding)... $10.49
------
------
</TABLE>

See notes to financial statements.

<PAGE>
<TABLE>
Premier Managed Income Fund
Statement of Operations six months ended June 30, 1996 (Unaudited)

<S> <C> <C>
INVESTMENT INCOME:
Interest Income............................................................ $ 3,421,651
Expenses:
Investment management fee---Note 2(a).................................... $ 322,628
Distribution fee---Note 2(b)............................................. 110,562
Trustees' fees and expenses--Note 2(c)................................... 7,998
Service fee--Note 2(b)................................................... 3,697
---------
Total Expenses....................................................... 444,885
-----------
INVESTMENT INCOME--NET............................................... 2,976,766
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS--Note 3:
Net realized (loss) on investments......................................... $ (777,368)
Net unrealized (depreciation) on investments............................... (4,443,443)
-----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS.................... (5,220,811)
-----------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(2,244,045)
-----------
-----------
</TABLE>

See notes to financial statements.

<PAGE>

Premier Managed Income Fund
Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 December 31,
(Unaudited) 1995
----------- -----------
<S> <C> <C>
OPERATIONS:
Investment income--net..................................................... $ 2,976,766 $ 6,556,543
Net realized (loss) on investments......................................... (777,368) (862,188)
Net unrealized appreciation (depreciation) on investments for the period... (4,443,443) 9,120,356
----------- -----------
Net Increase (Decrease) In Net Assets Resulting From Operations.......... (2,244,045) 14,814,711
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net:
Class A Shares........................................................... (2,502,939) (5,668,955)
Class B Shares........................................................... (79,329) (55,908)
Class C Shares........................................................... (2,648) (1,493)
Class R Shares........................................................... (390,350) (797,413)
----------- -----------
Total Dividends........................................................ (2,975,266) (6,523,769)
----------- -----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A Shares........................................................... 9,187,729 10,220,352
Class B Shares........................................................... 1,549,484 2,207,592
Class C Shares........................................................... 136,044 87,477
Class R Shares........................................................... 2,274,767 6,078,239
Dividends reinvested:
Class A Shares........................................................... 2,011,772 4,488,158
Class B Shares........................................................... 38,861 29,712
Class C Shares........................................................... 322 405
Class R Shares........................................................... 349,848 647,434
Cost of shares redeemed:
Class A Shares........................................................... (9,993,997) (20,718,702)
Class B Shares........................................................... (218,471) (68,609)
Class C Shares........................................................... (65,122) (22,587)
Class R Shares........................................................... (1,950,756) (5,758,344)
----------- -----------
Increase (Decrease) In Net Assets From Beneficial
Interest Transactions................................................ 3,320,481 (2,808,873)
----------- -----------
Total Increase (Decrease) In Net Assets.............................. (1,898,830) 5,482,069

NET ASSETS:
Beginning of period........................................................ 94,617,481 89,135,412
----------- -----------
End of period [including distributions in excess of
investment income--net; ($1,500) in 1995]................................ $92,718,651 $94,617,481
----------- -----------
----------- -----------
</TABLE>

See notes to financial statements.

<PAGE>

Premier Managed Income Fund
Statement of Changes in Net Assets (continued)

<TABLE>
<CAPTION>
Shares
------------------------------------------------------------------
Class A Class B
------------------------------ ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.............................. 842,983 973,428 144,220 205,379
Shares issued for dividends reinvested... 188,282 420,887 3,648 2,738
Shares redeemed.......................... (931,416) (1,961,160) (20,398) (6,278)
---------- ---------- ---------- ----------
Net Increase (Decrease)
In Shares Outstanding................ 99,849 (566,845) 127,470 201,839
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------

Shares
------------------------------------------------------------------
Class C Class R
------------------------------ ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
------------ ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS (continued):
Shares sold.............................. 12,789 8,049 209,151 574,177
Shares issued for dividends reinvested 30 37 32,745 60,440
Shares redeemed.......................... (6,124) (2,076) (181,782) (541,031)
---------- ---------- ---------- ----------

Net Increase
In Shares Outstanding................ 6,695 6,010 60,114 93,586
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------

</TABLE>

See notes to financial statements.

<PAGE>

Premier Managed Income Fund
Financial Highlights

<TABLE>
<CAPTION>
Class A Shares
------------------------------------------------------------------------------------
Six Months Ended Year Ended December 31,
June 30, 1996 -----------------------------------------------------------
PER SHARE DATA: (Unaudited) 1995 1994(1)(2) 1993(1)(3) 1992(1) 1991(1)
---------------- ------ ----------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period..................... $11.08 $10.12 $11.38 $11.45 $11.41 $10.55
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net.......... .34 .75 .69(4) .78(4) .87 .86
Net realized and unrealized
gain (loss) on investments.... (.58) .96 (1.26) .83 .10 .86
------ ------ ------ ------ ------ ------
Total from Investment
Operations................ (.24) 1.71 (.57) 1.61 .97 1.72
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment
income--net................... (.34) (.75) (.69) (.75) (.87) (.86)
Dividends in excess of investment
income--net................... -- -- -- -- (.06) --
Dividends from net realized gain
on investments................ -- -- -- (.57) -- --
Dividends in excess of net realized
gain on investments........... -- -- -- (.36) -- --
------ ------ ------ ------ ------ ------
Total Distributions........... (.34) (.75) (.69) (1.68) (.93) (.86)
------ ------ ------ ------ ------ ------
Net asset value, end of period.. $10.50 $11.08 $10.12 $11.38 $11.45 $11.41
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(5)........ (4.27%)(6) 17.32% (5.14%) 14.54% 8.77% 17.03%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets.................... .95%(6) .95% .98%(7) 1.14%(7) 1.02% 1.13%
Ratio of net investment income
to average net assets......... 6.28%(6) 7.08% 6.32% 6.55% 7.58% 7.91%
Portfolio Turnover Rate......... 151.87%(8) 236.10% 270.00% 333.00% 216.00% 119.00%
Net Assets, end of period
(000's Omitted)............... $77,576 $80,782 $79,548 $58,052 $98,207 $84,203

</TABLE>

- ------------------------
(1) On February 1, 1993 existing shares of the Fund were designated the
Retail Class and the Fund began offering the Institutional Class and the
Investment Class of shares. Effective April 4, 1994 the Retail and
Institutional Classes were reclassified as a single class of shares known as
the Investor shares. On October 17, 1994 Investor shares were redesignated
Class A shares. The amounts shown for the year ended December 31, 1994 were
calculated using the performance of a Retail Class share outstanding from
January 1, 1994 to April 3, 1994 and the performance of an Investor (now
Class A) share outstanding from April 4, 1994 to December 31, 1994. The
Financial Highlights for the year ended December 31, 1993 and prior years are
based upon a Retail Class share outstanding.
(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, which more appropriately presents the per share data for this year
since the use of the undistributed net investment income method did not
accord with results of operations.
(4) Net investment income before voluntary waiver of fees or reimbursement of
expenses by the investment adviser for the year ended December 31, 1994 was
$.69. Net investment income before waiver of fees and/or reimbursement of
expenses by the investment adviser, transfer agent, and distributor, for the
year ended December 31, 1993 was $.77.
(5) Exclusive of sales load.
(6) Annualized.
(7) Without the voluntary reimbursement of expenses and/or waiver of fees by
the investment adviser and/or transfer agent, and/or distributor, the ratio
of expenses to average net assets for the years ended December 31, 1994 and
1993 would have been .99% and 1.27% respectively.
(8) Not annualized.

See notes to financial statements.

<PAGE>

Premier Managed Income Fund
Financial Highlights (continued)

<TABLE>
<CAPTION>
Class B Shares Class C Shares
------------------------------ -----------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
PER SHARE DATA: (Unaudited) 1995 (Unaudited) 1995
---------------- ------------- ---------------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period........... $11.08 $10.12 $11.08 $10.12
------ ------ ------ ------
Investment Operations:
Investment income--net......................... .30 .67 .29 .67
Net realized and unrealized
gain (loss) on investments................... (.58) .96 (.58) .96
------ ------ ------ ------
Total from Investment
Operations............................... (.28) 1.63 (.29) 1.63
------ ------ ------ ------
Distributions;
Dividends from investment
income--net.................................. (.30) (.67) (.29) (.67)
------ ------ ------ ------
Net asset value, end of period................. $10.50 $11.08 $10.50 $11.08
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN(2)....................... (5.17%)(3) 16.55% (5.23%)(3) 16.54%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........ 1.69%(3) 1.69% 1.68%(3) 1.66%
Ratio of net investment income to
average net assets........................... 5.54%(3) 6.41% 5.36%(3) 6.03%
Portfolio Turnover Rate........................ 151.87%(4) 236.10% 151.87%(4) 236.10%
Net Assets, end of period
(000's Omitted).............................. $3,457 $2,236 $134 $67

</TABLE>

_____________
(1) The Fund commenced offering Class B and Class C shares on December 19,
1994. Financial Highlights for the period ended December 31, 1994 for Class B
and Class C shares are not present because no shares have been issued to the
public as of this date.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.

See notes to financial statements.

<PAGE>

Premier Managed Income Fund
Financial Highlights (continued)

Class R Shares
--------------------------------------------------------------
Six Months Ended Year Ended December 31, Period Ended
June 30, 1996 ----------------------- December 31,
PER SHARE DATA: (Unaudited) 1995 1994(1)(2) 1993(1)(3)
---------------- ------ --------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.......... $11.08 $10.12 $11.38 $11.62
------ ------ ------ ------
Investment Operations:
Investment income--net........................ .35 .78 .72(4) .74(4)
Net realized and unrealized gain (loss) on
investments................................. (.59) .96 (1.26) .67
------ ------ ------ ------
Total from Investment Operations........ (.24) 1.74 (.54) 1.41
------ ------ ------ ------
Distributions:
Dividends from investment income--net......... (.35) (.78) (.72) (.71)
Dividends from net realized gain on
investments................................. -- -- -- (.61)
Dividends in excess of net realized gain on
investments................................. -- -- -- (.33)
------ ------ ------ ------
Total Distributions..................... (.35) (.78) (.72) (1.65)
------ ------ ------ ------
Net asset value, end of period.............. $10.49 $11.08 $10.12 $11.38
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN(5)...................... (4.39%)(6) 17.71% (4.88%) 12.59%(6)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets....... .70%(6) .70% .71%(7) .83%(6)(7)
Ratio of net investment income to average net
assets...................................... 6.53%(6) 7.31% 6.59% 6.86%(6)
Portfolio Turnover Rate....................... 151.87%(8) 236.10% 270.00% 333.00%(8)
Net Assets, end of period (000's Omitted)..... $11,552 $11,532 $9,588 $1,338

</TABLE>

_________________
(1) On February 1, 1993, the Fund commenced selling Investment Class shares.
Effective April 4, 1994 the Investment Class shares was redesignated as the
Trust shares. On October 17, 1994 the Trust shares were redesignated 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, which more appropriately presents the per share data for this period
since the use of the undistributed net investment income method did not
accord with results of operations.
(4) Net investment income before voluntary waiver of fees or reimbursement of
expenses by the investment adviser for the year ended December 31, 1994 was
$.71. Net investment income before waiver of fees and/or reimbursement of
expenses by the investment adviser, transfer agent, and distributor, for the
period ended December 31, 1993 was $.74.
(5) Exclusive of sales load.
(6) Annualized.
(7) Without the voluntary reimbursement of expenses and/or waiver of fees by
the investment adviser and transfer agent, the ratio of expenses to average
net assets for the years ended December 31, 1994 and 1993 would have been
.72% and .87%, respectively.
(8) Not annualized.

See notes to financial statements.

<PAGE>

Premier Managed Income Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:
The Dreyfus/Laurel Funds Trust (the "Trust") is registered under
the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company and operates as a series company currently
offering four series including the Premier Managed Income Fund (the "Fund").
The Fund's investment objective is to seek high current income consistent
with what is believed to be prudent risk of capital primarily through
investments in investment-grade corporate and U.S. Government obligations and
in obligations having maturities of 10 years or less. The Dreyfus Corporation
("Manager") serves as the Fund's investment manager. 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 Fund currently offers four classes of
shares: Class A, Class B, Class C and Class R shares. Class A, Class B and
Class C shares are sold primarily to retail investors through financial
intermediaries and bear a distribution fee and/or service fee. Class A shares
are sold with a front-end sales charge, while Class B and Class C shares are
subject to a contingent deferred sales charge ("CDSC") and a service 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 or service
fee. Class R shares are offered without a front-end sales load or CDSC. Each
class of shares has identical rights and privileges, except with respect to
distribution fees and voting rights on matters affecting a single class.
Investment income, net of expenses (other than class specific expenses),
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: The Fund's investments (excluding short-term
investments and U.S. Government obligations) are valued each business day by
an independent pricing service ("Service") approved by the Board of Trustees.
Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the
Service from dealers in such securities) and asked prices (as calculated by
the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of securities of comparable
quality, coupon, maturity and type; indications as to values from dealers;
and general market conditions. 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 in U.S. Government
obligations are valued at the mean between quoted bid and asked prices.
Short-term investments are carried at amortized cost, which approximates
value.
(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 recorded on the ex-dividend date. Interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis.

<PAGE>

Premier Managed Income Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(c) Distributions to shareholders: It is the policy of the Fund to
declare dividends daily from investment income-net. Such dividends are paid
monthly. Dividends from net realized capital gain, if any, are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, it is the policy of the Fund not to distribute such
gain.
(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, 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.
The Fund has an unused capital loss carryover of approximately $7,010,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1995. The
carryover does not include net realized securities losses from November 1,
1995 through December 31, 1995 which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, $6,470,000 of the
carryover expires in fiscal 2002 and $540,000 of the carryover expires in
fiscal 2003.
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 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 .70% of the value of the Fund's average
daily net assets. Out of its fee, the Manager pays all of the expenses of the
Fund except brokerage fees, taxes, interest, Rule 12b-1 distribution fees and
expenses, fees and expenses of non-interested Trustees (including counsel
fees) and extraordinary expenses. In addition, the Manager is required to
reduce its fee in an amount equal to the Fund's allocable portion of fees and
expenses of the non-interested Trustees (including counsel).
(b) Distribution and service plan: The Fund has adopted a distribution
plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its
Class A, B and C shares. Under the Plan, the Fund may pay annually up to .25%
of the value of its average daily net assets attributable to its Class A
shares to compensate the Distributor and Dreyfus Service Corporation, an
affiliate of the Manager, for shareholder servicing activities and the
Distributor for activities and expenses primarily intended to result in the
sale of Class A shares. Under the Plan, the Fund may pay the Distributor for
distributing the Fund's Class B and Class C shares at an aggregate annual
rate of .75% of the value of the average daily net assets of Class B and
Class C shares. Class B and Class C shares are also subject to a service plan
adopted pursuant to Rule 12b-1, pursuant to which the Fund pays Dreyfus
Service Corporation or the Distributor for providing certain services to the
holders of Class B and Class C shares a fee at the annual rate of .25% of the
value of the average daily net assets of Class B and Class C shares. Class R
shares bear no service or distribution

<PAGE>

Premier Managed Income Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

fee. For the six months ended June 30, 1996, the distribution fee for
Class A, Class B and Class C shares was $99,470, $10,723 and $369,
respectively. For the six months ended June 30, 1996, the service fee for
Class B and Class C shares was $3,574 and $123, respectively.
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 Trust 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 meeting 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 purchase and sales (including paydowns) of
investment securities, excluding short-term securities, during the six months
ended June 30, 1996 amounted to $144,399,577 and $140,850,018, respectively.
At June 30, 1996, accumulated net unrealized depreciation on investments
was $1,021,828, consisting of $340,221 gross unrealized appreciation and
$1,362,049 gross unrealized depreciation.
At June 30, 1996, 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>

Premier Managed
Income Fund
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. MIFSA966