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 annual reporting period ended December 31, 1995, your
Fund produced total returns of 17.32%, 16.55%, 16.54% and 17.71% for Class A,
Class B, Class C and Class R shares, respectively.* During this 12-month
period, the Fund paid, approximately, the following income dividends: $.750
per share for Class A shares, producing a distribution rate per share of
6.46%; $.669 per share for Class B shares, producing a distribution rate per
share of 6.04%; $.668 per share for Class C shares, producing a distribution
rate per share of 6.03%; and $.775 per share for Class R shares, producing a
distribution rate per share of 7.00%.**
The Economy
Evidence that economic activity remained sluggish and that inflation
continued to be under control moved the Federal Reserve to further ease the
Federal Funds rate in December. (The Federal Funds rate is the rate at which
the nation's banks borrow money from each other and all other short-term
rates are based on this rate.) This was the second reduction for this
important short-term rate in 1995, the first occurring in July. The latest
25-basis-point reduction in December put the rate at 5.50%. Major incentives
for this additional reduction were the inflation report in November - the
increase in the Consumer Price Index was flat for the first time in 4-1/2
years - and the generally slow rate of economic growth. As it did in July,
the Federal Reserve left unchanged the discount rate - the rate at which the
Federal Reserve lends to member banks. The discount rate remained at 5.25%
throughout 1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and very modest industrial production lent credence to
fears about the possibility of recession. Consumer spending was inhibited
last year by the slow rate of new job creation, sluggish growth in wages and
salaries, and the continued trend of corporate cost-related layoffs. The
lethargic pace of consumer spending last year culminated in one of the worst
holiday sales periods since the business slump in 1990-1991, despite steep
price markdowns by retailers.
Industrial production climbed modestly during the year. By November,
though, the nation's factories operated at only 83.1% of capacity, down for
the third consecutive month. This was a reflection of weakening demand and
further evidence of the diminishing pressure to raise prices. Furthermore,
inventories built up by year-end, another sign of slackening demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the economy. As we go
forward without a budget agreement, reductions in annually appropriated
spending will tend to retard the economy. With an agreement, the combination
of cuts in appropriations and other spending reductions should have the same
effect.
There are strong indications that inflation is under control. Until
mid-year 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now, the focus seems to have shifted to actions designed to avoid
recession. In an election year, few things are less desirable for political
incumbents than recession.
<PAGE>
Market Environment and Portfolio Review
The U.S. fixed-income markets posted some of their best returns in recent
years. The Lehman Brothers Aggregate Bond Index, a broad measure of bond
market performance, returned 18.47% for the year.*** Interest rates fell
across all maturities, with the steepest declines occurring in the
intermediate portion of the yield curve.
The corporate bond market was the best performing sector of the
fixed-income market, including intermediate bonds. Investor demand for
noncallable securities with yields higher than the yields of government
securities fueled corporate bond performance. Within the corporate sector,
bonds below investment grade generally performed the best. By year-end, the
yield advantage of corporate bonds over Treasury securities was at its
narrowest level in years. As interest rates declined, fears of rising
mortgage prepayments restrained the performance of mortgage-backed
securities. Consequently, by year-end the yield advantage of mortgage-backed
securities over Treasuries was at the widest level in three years. Since
prices of mortgage-backed securities rose at a slower pace than Treasury
prices, this was used as a buying opportunity to increase the Fund's position
in the higher yielding mortgage-backed sector.
During the reporting period, the Fund reduced holdings of corporate bonds
to about 24% (down from 44% at the beginning of the year) in response to
their diminishing yield advantage over Treasury securities. The Fund also
eliminated all positions in emerging market high-yield debt. Holdings in
mortgage-backed securities were increased to 45% (from 31% at the beginning
of the year) in seeking to take advantage of the favorable spread in yields
of this sector over Treasury securities. These changes resulted in a higher
income component for the portfolio while reducing some of the risks inherent
in corporate bonds.
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 signature logo]
Almond G. Goduti
Portfolio Manager
January 16, 1996
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains
paid, without taking into account the maximum initial sales charge in the
case of Class A shares, or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and C shares.
**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, C and
R shares.
***Source: LIPPER ANALYTICAL SERVICES, INC. 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 December 31, 1995
_______________________________________
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER MANAGED INCOME
FUND CLASS A SHARES AND THE LEHMAN BROTHERS AGGREGATE BOND INDEX
[Exhibit A: CHART]
Lehman Brothers Premier Managed
Aggregate Income Fund
Bond Index* (Class A Shares)
________ ________
12/31/85 9,547 10,000
12/31/86 10,510 11,526
12/31/87 11,136 11,844
12/31/88 12,255 12,778
12/31/89 12,937 14,635
12/31/90 13,505 15,946
12/31/91 15,805 18,498
12/31/92 17,191 19,867
12/31/93 19,690 21,804
12/31/94 18,679 21,168
12/31/95 21,915 25,079
*Source: Lehman Brothers
Average Annual Total Returns
_______________________________________
Class A Shares
____________________________________
% Return
Reflecting
% Return Without Maximum Initial
Period Ended 12/31/95 Sales Charge Sales Charge (4.5%)
___________ ________ __________
1 Year 17.32% 12.01%
5 Years 10.14 9.13
10 Years 8.66 8.15
From Inception (8/1/79) 9.97 9.67
Class B Shares
____________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
Period Ended 12/31/95 Redemption Redemption*
___________ ______ ___________
1 Year 16.55% 12.55%
From Inception (12/19/94) 15.16 11.38
Class C Shares
____________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
Period Ended 12/31/95 Redemption Redemption**
___________ ______ ___________
1 Year 16.54% 15.54%
From Inception (12/19/94) 15.16 15.16
Class R Shares
____________________________________
Period Ended 12/31/95
___________
1 Year 17.71%
From Inception (2/1/93) 8.25
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of
Premier Managed Income Fund on 12/31/85 to a $10,000 investment made in the
Lehman Brothers Aggregate Bond Index on that date. All dividends and capital
gain distributions are reinvested. Performance for Class B shares, Class C
shares and Class R shares will vary from the performance of Class A shares
shown above due to differences in charges and expenses.
Premier Managed Income Fund seeks 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 Fund's performance shown in the
line graph takes into account the maximum initial sales charge on Class A
shares and all other applicable fees and expenses. 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. Further information relating
to Fund performance, including expense reimbursements, if applicable, is
contained in the Financial Highlights section of the Prospectus and elsewhere
in this report.
* Maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
** Maximum contingent deferred sales charge for Class C shares is 1% within
one year of the date of purchase.
<PAGE>
Premier Managed Income Fund
_______________________________________
Statement of Investments December 31, 1995
<TABLE>
<CAPTION>
Principal
Convertible Subordinated Debentures-.7% Amount Value
______ ______
<S> <C> <C> <C>
Foreign; Rogers Communications,
2%, 2005
(cost $662,550)............................... $ 1,295,000 $ 696,063
======
Bonds and Notes-98.0%
___________________________________________
Banking-.8% First USA Bank,
Medium-Term Notes, 8.10%, 1997................ 710,000 728,670
______
Consumer-1.0% Federated Department Stores,
Sr. Notes, 10%, 2001.......................... 840,000 913,500
______
Finance-5.4% Donaldson, Lufkin & Jenrette,
Sr. Notes, 6-7/8%, 2005....................... 522,000 535,839
Lincoln National,
Deb., 7-1/4%, 2005............................ 770,000 817,069
Paine Webber Group,
Medium-Term Sr. Notes, Ser. C, 7.31%, 2000.... 1,750,000 1,813,287
Prudential Insurance Company of America,
Surplus Notes, 7.65%, 2007.................... 900,000(a) 956,250
Smith Barney Holdings,
Notes, 7-7/8%, 1999........................... 1,000,000 1,066,253
______
5,188,698
______
Finance/Asset Backed-2.0% AT&T Universal Card Master Trust,
Floating Rate Asset Backed Ctfs.,
Ser. 1995-3, Cl. A, 5.95%, 2002............... 968,000(b) 972,685
EQCC Home Equity Loan Trust 1993-3,
Asset Backed Notes, 5.15%, 2008............... 912,631 891,841
______
1,864,526
______
Industrial-5.7% ADT Operations,
Sr. Notes (Gtd. by ADT Ltd.), 8-1/4%, 2000.... 950,000 1,009,375
American Home Products,
Notes, 7.70%, 2000............................ 516,000 552,905
Jones Intercable,
Sr. Notes, 9-5/8%, 2002....................... 900,000 970,875
Lenfest Communications,
Sr. Notes, 8-3/8%, 2005....................... 667,000 670,335
Paging Network,
Sr. Sub. Notes, 8-7/8%, 2006.................. 470,000 483,512
Tenet Healthcare,
Sr. Notes, 9-5/8%, 2002....................... 920,000 1,016,600
</TABLE>
<PAGE>
Premier Managed Income Fund
_______________________________________
Statement of Investments (continued) December 31, 1995
<TABLE>
<CAPTION>
Principal
Bonds and Notes (continued) Amount Value
______ ______
<S> <C> <C> <C>
Industrial (continued) USG,
Sr. Notes, Ser. B, 9-1/4%, 2001............... $ 200,000 $ 214,000
Valassis Inserts,
Sr. Sub. Notes, 9-3/8%, 1999.................. 440,000 449,506
______
5,367,108
______
Foreign- 8.6% Aegon N.V.,
Sub. Notes, 8%, 2006.......................... 972,000 1,097,038
Bangkok Bank plc,
Sub. Notes, 7-1/4%, 2005...................... 900,000(a) 940,632
Carter Holt Harvey Ltd.,
Sr. Notes, 8-7/8%, 2004....................... 381,000 446,694
China International Trust and Investment,
Bonds, 9%, 2006............................... 1,150,000 1,286,636
Hanson Overseas B.V.,
Sr. Notes (Gtd. by Hanson plc), 6-3/4%, 2005.. 619,000 642,090
International Semi-Tech Microelectronics,
Sr. Sec. Discount Notes, Zero Coupon, 2000.... 1,250,000(c) 662,500
Malayan Banking Berhad,
Sub. Notes, 7-1/8%, 2005...................... 563,000 586,289
Mass Transit Railway,
Notes, 7-1/4%, 2005........................... 440,000 458,004
Midland Bank plc,
Sub. Notes, 8-5/8%, 2004...................... 600,000 691,020
Repsol International Finance B.V.,
Notes (Gtd. by Repsol, S.A.), 7%, 2005........ 1,027,000 1,099,372
Rogers Cablesystems Ltd.,
Sr. Sec. Second Priority Notes, 9-5/8%, 2002.. 225,000 237,375
______
8,147,650
______
U.S. Government
and Agencies-74.5% Federal National Mortgage Association:
8%, 10/1/2010................................. 3,526,777 3,656,810
14-3/4%, 8/1/2012............................. 40,783 46,989
7-1/2%, 4/1/2025.............................. 1,212,050 1,243,103
7-1/2%, 4/1/2025.............................. 3,969,209 4,070,901
8-1/2%, 9/1/2025.............................. 3,868,395 4,041,235
7%, 10/1/2025................................. 3,268,815 3,298,431
7-1/2%, 10/1/2025............................. 4,052,233 4,156,052
Real Estate Mortgage Investment
Conduit Trust, Pass-Through Ctfs.
(Collateralized by FNMA Pass-Through
Ctfs.), Ser. G92-20, Cl. SA, 437-7/8%,
2022 (Interest Only Obligation)............. (d) 199,680
Government National Mortgage Association I:
8-1/2%, 12/15/2024............................ 3,368,621 3,551,774
8%, 1/15/2025................................. 1,947,157 2,037,214
8-1/2%, 4/15/2025............................. 1,451,744 1,530,676
7-1/2%, 9/15/2025............................. 5,255,852 5,429,927
8%, 9/15/2025................................. 8,616,465 9,014,977
</TABLE>
<PAGE>
Premier Managed Income Fund
_______________________________________
Statement of Investments (continued) December 31, 1995
<TABLE>
<CAPTION>
Principal
Bonds and Notes (continued) Amount Value
______ ______
<S> <C> <C> <C>
U.S. Government
and Agencies (continued) U.S. Treasury Bonds:
7-7/8%, 8/15/2001............................. $ 665,000 $ 743,241
7-1/8%, 2/15/2023............................. 7,077,000 8,092,111
U.S. Treasury Notes:
6-7/8%, 10/31/1996............................ 1,879,000 1,903,369
7-7/8%, 1/15/1998............................. 2,691,000 2,828,074
6-1/2%, 4/30/1999............................. 64,000 66,360
6-3/8%, 8/15/2002............................. 3,871,000 4,063,644
7-1/4%, 8/15/2004............................. 7,289,000 8,112,431
5-7/8%, 11/15/2005............................ 2,320,000 2,372,562
______
70,459,561
______
TOTAL BONDS AND NOTES
(cost $89,281,611)............................ $92,669,713
======
TOTAL INVESTMENTS (cost $89,944,161).................................................. 98.7% $93,365,776
===== ======
CASH AND RECEIVABLES (NET)............................................................ 1.3% $ 1,251,705
===== ======
NET ASSETS............................................................................ 100.0% $94,617,481
===== ======
</TABLE>
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 December 31,
1995, these securities amounted to $1,896,882 or 2.0% of net assets.
(b) Variable rate security - interest rate subject to periodic change.
(c) Zero Coupon until 8/15/00, date on which a stated coupon rate of 11-1/2%
becomes effective; the stated maturity date is 2003.
(d) Nominal face $19,017.
See notes to financial statements.
<PAGE>
Premier Managed Income Fund
_______________________________________
Statement of Assets and Liabilities December 31, 1995
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $89,944,161)-see Statement of Investments.................... $93,365,776
Cash.................................................................... 186,667
Receivable for shares of Beneficial Interest subscribed................. 8,000
Interest receivable..................................................... 1,370,582
______
94,931,025
LIABILITIES:
Due to The Dreyfus Corporation-Note 2(a)................................ $109,096
Due to the Distributor-Note 2(b)........................................ 18,970
Payable for shares of Beneficial Interest redeemed...................... 177,551
Trustees' fees payable-Note 2(c)........................................ 7,927 313,544
____ ______
NET ASSETS.................................................................. $94,617,481
======
REPRESENTED BY:
Paid-in capital......................................................... $98,874,418
Accumulated distributions in excess of investment income-net........... (1,500)
Accumulated net realized (loss) on investments ......................... (7,677,052)
Accumulated net unrealized appreciation on investments-Note 3 .......... 3,421,615
______
NET ASSETS at value........................................................ $94,617,481
======
NET ASSET VALUE, per share:
Class A Shares
unlimited number of shares of Beneficial Interest
($80,782,345 / 7,290,689 shares of Beneficial Interest outstanding)... $11.08
======
Class B Shares
unlimited number of shares of Beneficial Interest
($2,236,556 / 201,840 shares of Beneficial Interest outstanding)...... $11.08
======
Class C Shares
unlimited number of shares of Beneficial Interest
($66,622 / 6,011 shares of Beneficial Interest outstanding)........... $11.08
======
Class R Shares
unlimited number of shares of Beneficial Interest
($11,531,958 / 1,040,655 shares of Beneficial Interest outstanding)... $11.08
======
</TABLE>
See notes to financial statements.
<PAGE>
Premier Managed Income Fund
_______________________________________
Statement of Operations year ended December 31, 1995
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Interest.............................................................. $ 7,355,308
Cash dividends........................................................ 57,500
______
Total Income...................................................... $ 7,412,808
______
Expenses:
Investment management fee-Note 2(a)................................... $ 632,276
Distribution fee-Note 2(b)............................................ 208,244
Trustees' fees and expenses-Note 2(c)................................. 13,817
Service fee-Note 2(b)................................................. 1,928
______
Total Expenses.................................................... 856,265
______
INVESTMENT INCOME-NET............................................. 6,556,543
REALIZED AND UNREALIZED GAIN ON INVESTMENTS-Note 3:
Net realized (loss) on investments ..................................... $ (862,188)
Net unrealized appreciation on investments.............................. 9,120,356
______
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 8,258,168
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $14,814,711
======
</TABLE>
See notes to financial statements.
<PAGE>
Premier Managed Income Fund
_______________________________________
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended December 31,
________________________________
1995 1994
______ ______
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 6,556,543 $ 6,214,116
Net realized (loss) on investments................................... (862,188) (3,956,546)
Net unrealized appreciation (depreciation) on investments for the year 9,120,356 (7,391,645)
______ ______
Net Increase (Decrease) In Net Assets Resulting From Operations.... 14,814,711 (5,134,075)
______ ______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A Shares..................................................... (5,668,955) (5,050,079)
Institutional Class................................................ _ (444,891)
Class B Shares..................................................... (55,908) _
Class C Shares..................................................... (1,493) _
Class R Shares..................................................... (797,413) (817,994)
______ ______
Total Dividends.................................................. (6,523,769) (6,312,964)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A Shares(1).................................................. 10,220,352 51,614,329
Class B Shares..................................................... 2,207,592 15
Class C Shares..................................................... 87,477 15
Class R Shares..................................................... 6,078,239 5,912,410
Dividends reinvested:
Class A Shares(1).................................................. 4,488,158 4,468,073
Class B Shares..................................................... 29,712 _
Class C Shares..................................................... 405 _
Class R Shares..................................................... 647,434 489,170
Cost of shares redeemed:
Class A Shares(1).................................................. (20,718,702) (52,983,942)
Class B Shares..................................................... (68,609) _
Class C Shares..................................................... (22,587) _
Class R Shares..................................................... (5,758,344) (6,716,707)
______ ______
Increase (Decrease) In Net Assets From Beneficial Interest
Transactions................................................... (2,808,873) 2,783,363
______ ______
Total Increase (Decrease) In Net Assets........................ 5,482,069 (8,663,676)
NET ASSETS:
Beginning of year.................................................... 89,135,412 97,799,088
______ ______
End of year [including distributions in excess of investment
income-net: ($1,500) in 1995 and ($34,274) in 1994]................ $ 94,617,481 $ 89,135,412
====== ======
</TABLE>
<TABLE>
<CAPTION>
Shares
____________________________________________________________________________________
Class A Class B Class C Class R
_______________________ ____________ ____________ _______________________
Year Ended December 31, Year Ended Year Ended Year Ended December 31,
________________________ December 31, December 31, ________________________
1995 1994(2) 1995(3) 1995(3) 1995 1994(4)
_____ _____ ______ ______ ____ ____
<S> <C> <C> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.................... 973,428 4,868,476 205,379 8,049 574,177 538,268
Shares issued for dividends
reinvested................... 420,887 421,059 2,738 37 60,440 46,123
Shares redeemed................ (1,961,160) (5,028,074) (6,278) (2,076) (541,031) (633,398)
_____ _____ ____ ___ ____ ____
Net Increase (Decrease) In
Shares Outstanding......... (566,845) 261,461 201,839 6,010 93,586 (49,007)
===== ===== ==== === ==== ====
<FN>
________
(1) Amounts include $5,339,913 of subscriptions, $399,392 of reinvestments
and $6,015,971 of redemptions for the Institutional Class up to April 4,
1994.
(2) Number of shares includes 464,962 of subscriptions, 35,257 of
reinvestments and 524,902 of redemptions for the Institutional Class up to
April 4, 1994.
(3) The Fund commenced offering Class B and Class C shares on December 19,
1994. As of December 31, 1994, the Fund had issued 1.472 Class B shares and
1.472 Class C shares.
(4) Effective April 4, 1994, the Retail and Institutional Classes were
redesignated as a single class of shares known as Investor Shares and the
Investment Class was reclassified as Trust shares. On October 17, 1994
Investor and Trust shares were redesignated Class A and Class R shares,
respectively.
</TABLE>
See notes to financial statements.
<PAGE>
Premier Managed Income Fund
_______________________________________
Financial Highlights
Contained below is per share 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.
<TABLE>
<CAPTION>
Class A Shares
________________________________________________________
Year Ended December 31,
________________________________________________________
PER SHARE DATA: 1995 1994(1)(2) 1993(1)(3) 1992(1) 1991(1)
___ _____ _____ ____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year...................... $10.12 $11.38 $11.45 $11.41 $10.55
___ ___ ___ ___ ___
Investment Operations:
Investment income-net................................... .75 .69(4) .78(4) .87 .86
Net realized and unrealized gain (loss) on investments.. .96 (1.26) .83 .10 .86
___ ___ ___ ___ ___
Total from Investment Operations...................... 1.71 (.57) 1.61 .97 1.72
___ ___ ___ ___ ___
Distributions:
Dividends from investment income-net.................... (.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................................... (.75) (.69) (1.68) (.93) (.86)
___ ___ ___ ___ ___
Net asset value, end of year............................ $11.08 $10.12 $11.38 $11.45 $11.41
=== === === === ===
TOTAL INVESTMENT RETURN(5).................................. 17.32% (5.14%) 14.54% 8.77% 17.03%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. .95% .98%(6) 1.14%(6) 1.02% 1.13%
Ratio of net investment income to average net assets.... 7.08% 6.32% 6.55% 7.58% 7.91%
Portfolio Turnover Rate................................. 236.10% 270.00% 333.00% 216.00% 119.00%
Net Assets, end of year (000's Omitted)................. $80,782 $79,548 $58,052 $98,207 $84,203
<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. 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 mananger.
(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) 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.
</TABLE>
See notes to financial statements.
<PAGE>
Premier Managed Income Fund
_______________________________________
Financial Highlights (continued)
Contained below is per share 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.(1)
<TABLE>
<CAPTION>
Class B Shares Class C Shares Class R Shares
______________ ______________ ____________________________________
Year Ended Year Ended Year Ended December 31, Year Ended
December 31 December 31, ____________ December 31,
PER SHARE DATA: 1995(2) 1995(2) 1995 1994(3)(4) 1993(3)(5)
______________ ______________ ______ __________ ___________
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.12 $10.12 $10.12 $11.38 $11.62
___ ___ ___ ___ ___
Investment Operations:
Investment income-net....................... .67 .67 .78 .72(6) .74(6)
Net realized and unrealized gain (loss) on
investments............................... .96 .96 .96 (1.26) .67
___ ___ ___ ___ ___
Total from Investment Operations.......... 1.63 1.63 1.74 (.54) 1.41
___ ___ ___ ___ ___
Distributions:
Dividends from investment income-net........ (.67) (.67) (.78) (.72) (.71)
Dividends from net realized gain on
investments............................... _ _ _ _ (.61)
Dividends in excess of net realized gain
on investments............................ _ _ _ _ (.33)
___ ___ ___ ___ ___
Total Distributions....................... (.67) (.67) (.78) (.72) (1.65)
___ ___ ___ ___ ___
Net asset value, end of period.............. $11.08 $11.08 $11.08 $10.12 $11.38
=== === === === ===
TOTAL INVESTMENT RETURN(7)...................... 16.55% 16.54% 17.71% (4.88%) 12.59%(8)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets..... 1.69% 1.66% .70% .71%(9) .83%(8)(9)
Ratio of net investment income to average
net assets................................ 6.41% 6.03% 7.31% 6.59% 6.86%(8)
Portfolio Turnover Rate..................... 236.10% 236.10% 236.10% 270.00% 333.00%(10)
Net Assets, end of period (000's Omitted)... $2,236 $67 $11,532 $9,588 $1,338
<FN>
__________
(1) 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) The Fund commenced offering Class B and Class C shares on December 19,
1994.
(3) On February 1, 1993, the Fund commenced selling Investment Class shares.
Effective April 4, 1994 the Investment Class was redesignated as the Trust
Shares. On October 17, 1994 the Trust Shares were redesignated Class R
shares.
(4) 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.
(5) 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.
(6) 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.
(7) Exclusive of sales load.
(8) Annualized.
(9) 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.
(10) Not annualized.
</TABLE>
See notes to financial statements.
<PAGE>
Premier Managed Income Fund
_______________________________________
NOTES TO FINANCIAL STATEMENTS
NOTE 1-Significant Accounting Policies:
Premier Managed Income Fund (the "Fund") is a diversified income
fund that seeks 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/Laurel Funds Trust (the "Trust")
is registered under the Investment Company Act of 1940 ("Act") and operates
as a series company currently offering four series including the Fund. The
Dreyfus Corporation ("Manager") serves as the Fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon Bank").
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Distributor, located at One Exchange
Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI
Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc.,
the parent company of which is Boston Institutional Group, Inc.
The Fund 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) and realized and unrealized gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets of each
class.
(a) Portfolio Valuation: 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 dire
ction 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.
<PAGE>
Premier Managed Income Fund
_______________________________________
NOTES TO FINANCIAL STATEMENTS (continued)
(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.
(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 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 .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
<PAGE>
Premier Managed Income Fund
_______________________________________
NOTES TO FINANCIAL STATEMENTS (continued)
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 fee. For the
year ended December 31, 1995, the service fee for Class B and Class C shares
was $1,866 and $62, respectively. For the year ended December 31, 1995, the
distribution fee for Class A, Class B and Class C shares was $201,030, $7,027
and $187, 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 Company and who have no
direct or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan.
(c) Trustees' Fees: Each trustee who is not an "interested person"
as defined in the Act receives $27,000 per year, $1,000 for each Board
meeting attended and $750 for each Audit Committee attended and is reimbursed
for travel and out-of-pocket expenses. These expenses are paid in total by
the following funds: the Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel
Tax-Free Municipal Funds, and the Dreyfus/Laurel Funds Trust. In addition
the Chairman of the Board receives an annual fee of $75,000 per year. These
fees and expenses are charged and allocated to each series based on net
assets.
NOTE 3_Securities Transactions:
The aggregate amount of purchase and sales of investment
securities, excluding short-term securities, during the year ended December
31, 1995, amounted to $214,727,712 and $209,198,172, respectively.
At December 31, 1995, accumulated net unrealized appreciation on
investments was $3,421,615, consisting of $3,881,211 gross unrealized
appreciation and $459,596 gross unrealized depreciation.
At December 31, 1995, the cost of investments for Federal income
tax purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
<PAGE>
Premier Managed Income Fund
_______________________________________
Independent Auditors' Report
Board of Trustees and Shareholders:
The Dreyfus/Laurel Funds Trust
We have audited the accompanying statement of assets and liabilities of
the Premier Managed Income Fund of The Dreyfus/Laurel Funds Trust as of
December 31, 1995, and the related statement of operations for the year then
ended, and the statement of changes in net assets and the financial
highlights for each of the two years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these financ
ial statements and financial highlights based on our audits. The financial
highlights for each of the years or periods in the three-year period ended
December 31, 1993 were audited by other auditors whose report thereon, dated
February 14, 1994, expressed an unqualified opinion on that statement and
those financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of the Premier Managed Income Fund of The Dreyfus/Laurel Funds
Trust, as of December 31, 1995, and the results of its operations for the
year then ended, changes in its net assets, and the financial highlights for
each of the years in the two year period then ended, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Pittsburgh, Pennsylvania
February 6, 1996
<PAGE>
[Dreyfus lion "d" logo]
Premier Managed
Income Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Trust
One Cabot Road
Medford, MA 02155
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. MIFAR9512
[Dreyfus logo]
<PAGE>
Annual Report
___________
Premier Managed
Income Fund
___________
December 31, 1995
[LION]
<PAGE>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN PREMIER MANAGED INCOME FUND CLASS A SHARES AND
THE LEHMAN BROTHERS AGGREGATE BOND INDEX
EXHIBIT A:
_____________________________________________________
| | PREMIER | |
| | MANAGED | LEHMAN BROTHERS |
| PERIOD | INCOME FUND | AGGREGATE |
| |(CLASS A SHARES) | BOND INDEX* |
|-----------|--------------------| ------------------|
| 12/31/85 | 9,547 | 10,000 |
| 12/31/86 | 10,510 | 11,526 |
| 12/31/87 | 11,136 | 11,844 |
| 12/31/88 | 12,255 | 12,778 |
| 12/31/89 | 12,937 | 14,635 |
| 12/31/90 | 13,505 | 15,946 |
| 12/31/91 | 15,805 | 18,498 |
| 12/31/92 | 17,191 | 19,867 |
| 12/31/93 | 19,690 | 21,804 |
| 12/31/94 | 18,679 | 21,168 |
| 12/31/95 | 21,915 | 25,079 |
-----------|--------------------| ------------------|
*Source: Lehman Brothers
