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 annual reporting period ended
December 31, 1995, your Fund produced total returns of 14.98%, 14.40%, 14.48%
and 15.34% 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: $.746 per share for Class A shares, producing a
distribution rate per share of 5.62%; $.683 per share for Class B and Class C
shares, producing a distribution rate per share of 5.30%; and $.776 per share
for Class R shares, producing a distribution rate per share of 6.02%.**
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 an 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 a 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, 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.
<PAGE>
Market Environment and Portfolio Review
The U.S. fixed-income markets posted some of the best returns in recent
years. The Lehman Brothers Intermediate Government Index, a broad measure of
bond market performance, rose 14.41% over the Fund's reporting period.***
Interest rates fell across all maturities, with the steepest declines
occurring in the intermediate portion of the yield curve.
The corporate market was the best performing sector of the fixed-income
market, including intermediate term bonds. Investor demand for noncallable
securities with yields higher than yields of government securities fueled
corporate bond performance. Within the corporate sector, bonds below
investment grade generally performed 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 prepayments restrained the
performance of mortgage-backed securities. Consequently, by year-end the
yield advantage of mortgage 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.
In accordance with the objectives of the Fund, the portfolio maintained
an overweighted position in the intermediate portion of the yield curve
compared to the benchmark Index. By year-end, the Fund's duration was 3.1
years, a slight reduction from the 3.3-year duration at the beginning of the
reporting period. In seeking to enhance the income component of the Fund,
holdings in mortgage pass-through securities were increased through selective
purchases throughout the period. These securities consist of single-family
home loans guaranteed by the Government National Mortgage Association and the
Federal National Mortgage Association. By the end of the year, they yielded
approximately 1.5% more than Treasury securities of comparable maturity.
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 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
______________________________________-
December 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER LIMITED TERM
GOVERNMENT SECURITIES FUND CLASS A SHARES AND THE LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT INDEX
[Exhibit A: CHART]
Premier Limited Lehman Brothers
Term Government Intermediate
Securities Fund Government
(Class A Shares) Index*
________ _______-
3/3/86 9,697 10,000
12/31/86 10,511 10,977
12/31/87 10,618 11,373
12/31/88 11,282 12,100
12/31/89 12,510 13,635
12/31/90 13,421 14,938
12/31/91 15,235 17,045
12/31/92 16,068 18,226
12/31/93 17,529 19,715
12/31/94 16,786 19,371
12/31/95 19,300 22,163
*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 (3.0%)
__________- ________ _________-
1 Year 14.98% 11.50%
5 Years 7.52 6.87
From Inception (3/3/86) 7.24 6.91
Class B Shares
__________________________________-
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
Period Ended 12/31/95 Redemption Redemption*
__________- _____- __________-
1 Year 14.40% 11.40%
From Inception (12/19/94) 13.68 10.84
Class C Shares
__________________________________-
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
Period Ended 12/31/95 Redemption Redemption**
__________- _____- __________-
1 Year 14.48% 13.73%
From Inception (12/19/94) 13.76 13.76
Class R Shares
__________________________________-
Period Ended 12/31/95
__________-
1 Year 15.34%
From Inception (4/8/94) 7.67
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of
Premier Limited Term Government Securities Fund on 3/3/86 (Inception Date) to
a $10,000 investment made in the Lehman Brothers Intermediate Government
Index on that date. For comparative purposes, the value of the Index on
2/28/86 is used as the beginning value on 3/3/86. 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.
The Fund invests primarily in securities issued or guaranteed by the U.S.
Government or its agencies or instrumentalities with remaining maturities of
between three and eight years. The average weighted maturity of the Fund's
portfolio is between three and ten years. 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
Intermediate Government Index is composed of all publicly issued,
non-convertible debt of the U.S. Government or any agency thereof,
quasi-federal corporations, and corporate debt guaranteed by the U.S.
Government. 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. 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 3% and is
reduced to 0% after five years.
** Maximum contingent deferred sales charge for Class C shares is .75% within
one year of the date of purchase.
<PAGE>
Premier Limited Term Government Securities Fund
______________________________________-
Statement of Investments December 31, 1995
<TABLE>
<CAPTION>
Principal
Bonds and Notes_98.0% Amount Value
_____________________________________ _____- _____-
<S> <C> <C>
U.S. Treasury Notes_82.6%
5-1/2%, 4/15/2000..................................................... $ 3,000,000 $ 3,028,125
7%, 4/15/1999......................................................... 2,800,000 2,942,626
7-1/8%, 10/15/1998.................................................... 3,300,000 3,459,327
7-1/8%, 2/29/2000..................................................... 44,000 46,874
7-1/4%, 8/15/2004..................................................... 1,060,000 1,179,747
7-3/8%, 5/15/1996..................................................... 200,000 201,547
7-3/4%, 1/31/2000..................................................... 1,800,000 1,956,375
_____-
Total U.S. Treasury Notes................................................. 12,814,621
======
Mortgage-Backed Securities_15.4%
Federal Home Loan Mortgage Corp.,
Participation Certificates;
11%, 11/1/2015........................................................ 5,491 6,089
_____-
Federal National Mortgage Association;
7-1/2%, 10/1/2025..................................................... 790,178 810,422
_____-
Government National Mortgage Association I:
8%, 9/15/2024......................................................... 753,998 786,043
9%, 2/15/2019-2/15/2020............................................... 519,026 550,329
9-1/2%, 10/15/2009.................................................... 69,333 74,468
10%, 5/15/2019........................................................ 65,775 72,167
10-1/2%, 2/15/2014-4/15/2016.......................................... 58,235 64,532
11-1/2%, 12/15/2015................................................... 27,097 30,721
_____-
1,578,260
_____-
Total Mortgage-Backed Securities.......................................... 2,394,771
======
TOTAL INVESTMENTS
(cost $14,500,653)...................................................... 98.0% $15,209,392
===== ======
CASH AND RECEIVABLES (NET)................................................ 2.0% $ 302,900
===== ======
NET ASSETS............................................................... 100.0% $15,512,292
===== ======
</TABLE>
See notes to financial statements.
<PAGE>
Premier Limited Term Government Securities Fund
______________________________________-
Statement of Assets and Liabilities December 31, 1995
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value (cost $14,500,653)_see Statement
of Investments........................................................ $15,209,392
Cash.................................................................... 111,882
Interest receivable..................................................... 232,303
Paydowns receivable..................................................... 170
_____-
15,553,747
LIABILITIES:
Due to The Dreyfus Corporation_Note 2(a)............................... $15,142
Due to Distributor_Note 2(b)........................................... 3,318
Payable for shares of Beneficial Interest redeemed...................... 21,673
Trustees' fees payable_Note 2(c)....................................... 1,322 41,455
___- _____-
NET ASSETS.................................................................. $15,512,292
======
REPRESENTED BY:
Paid-in capital......................................................... $15,173,710
Accumulated distributions in excess of investment income_net........... (2,773)
Accumulated net realized (loss) on investments.......................... (367,384)
Accumulated gross unrealized appreciation on investments................ 708,739
_____-
NET ASSETS at value......................................................... $15,512,292
======
NET ASSET VALUE, per share:
Class A Shares
unlimited number of shares of Beneficial Interest
($15,054,839 / 1,168,411 shares of Beneficial Interest outstanding)... $12.88
======
Class B Shares
unlimited number of shares of Beneficial Interest
($274,716 / 21,321 shares of Beneficial Interest outstanding)......... $12.88
======
Class C Shares
unlimited number of shares of Beneficial Interest
($16.74 / 1.299 shares of Beneficial Interest outstanding)............ $12.89
======
Class R Shares
unlimited number of shares of Beneficial Interest
($182,720 / 14,171 shares of Beneficial Interest outstanding)......... $12.89
======
</TABLE>
See notes to financial statements.
<PAGE>
Premier Limited Term Government Securities Fund
______________________________________-
Statement of Operations year ended December 31, 1995
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest Income......................................................... $1,106,816
Expenses:
Investment management fee_Note 2(a).................................. $ 95,714
Distribution fee_Note 2(b)........................................... 40,782
Trustees' fees and expenses_Note 2(c)................................ 1,622
Service fee_Note 2(b)................................................ 282
_____
Total Expenses.................................................... 138,400
_____
INVESTMENT INCOME_NET............................................ 968,416
REALIZED AND UNREALIZED GAIN ON INVESTMENTS_Note 3:
Net realized (loss) on investments...................................... $ (173,203)
Net unrealized appreciation on investments.............................. 1,508,417
_____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 1,335,214
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,303,630
======
</TABLE>
See notes to financial statements.
<PAGE>
Premier Limited Term Government Securities Fund
______________________________________-
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended December 31,
______________-______________-
1995 1994
_____- _____-
<S> <C> <C>
OPERATIONS:
Investment income_net............................................... $ 968,416 $ 1,122,433
Net realized (loss) on investments................................... (173,203) (183,515)
Net unrealized appreciation (depreciation) on investments for the year 1,508,417 (1,875,149)
_____- _____-
Net Increase (Decrease) In Net Assets Resulting From Operations.. 2,303,630 (936,231)
_____- _____-
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income_net:
Class A Shares..................................................... (966,462) (942,903)
Institutional Class................................................ _ (179,530)
Class B Shares..................................................... (5,926) _
Class C Shares..................................................... (1) _
Class R Shares..................................................... (1,188) _
_____- _____-
Total Dividends.................................................. (973,577) (1,122,433)
_____- _____-
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A Shares(1).................................................. 1,733,856 8,436,807
Class B Shares..................................................... 286,680 15
Class C Shares..................................................... _ 15
Class R Shares..................................................... 180,000 15
Dividends reinvested:
Class A Shares(1).................................................. 857,024 1,029,275
Class B Shares..................................................... 2,838 _
Class C Shares..................................................... _ _
Class R Shares..................................................... 1,187 _
Cost of shares redeemed:
Class A Shares(1).................................................. (6,542,409) (12,277,432)
Class B Shares..................................................... (21,787) _
Class C Shares..................................................... _ _
Class R Shares..................................................... _ _
_____- _____-
(Decrease) In Net Assets From Beneficial Interest Transactions... (3,502,611) (2,811,305)
_____- _____-
Total (Decrease) In Net Assets................................. (2,172,558) (4,869,969)
NET ASSETS:
Beginning of year.................................................... 17,684,850 22,554,819
_____- _____-
End of year [including distributions in excess of investment income-net;
$(2,773) in 1995 and undistributed investment income-net;
$2,388 in 1994].................................................... $15,512,292 $17,684,850
====== ======
</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)(3) 1995(4) 1995(4) 1995(5)
___- _____ ______ ______ ______
<S> <C> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.................. 141,378 671,131 22,818 _ 14,077
Shares issued for dividends..
reinvested................. 68,726 83,300 224 _ 93
Shares redeemed.............. (529,321) (983,069) (1,722) _ _
____ ____ ___ ___ ___
Net Increase (Decrease)
In Shares Outstanding.... (319,217) (228,638) 21,320 _ 14,170
==== ==== === === ===
<FN>
___________
(1) Amounts include $3,344,448 of subscriptions, $168,039 of reinvestments
and $3,798,430 of redemptions for the Institutional Class up to April 4,
1994.
(2) Effective April 4, 1994, Retail shares and Institutional shares were
redesignated Investor shares. On October 17, 1994 Investor shares were
redesignated as Class A shares.
(3) Number of shares includes 257,667 of subscriptions, 12,997 of
reinvestments and 292,971 of redemptions for the Institutional Class up to
April 4, 1994.
(4) The Fund commenced offering Class B and Class C shares on December 19,
1994. As of December 31, 1994, the Fund had issued 1,259 Class B shares and
1.259 Class C shares.
(5) The Fund commenced selling Class R shares on April 4, 1994. As of
December 31, 1994, the Fund had issued 1.216 Class R shares.
</TABLE>
See notes to financial statements.
<PAGE>
Premier Limited Term Government Securities 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 year 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) 1992 1991
___ ___ ___ ___ ___
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.................... $11.89 $13.14 $12.76 $12.81 $11.99
___ ___ ___ ___ ___
Investment Operations:
Investment income_net................................ .74 .68(3) .75(3) .72 .74
Net realized and unrealized gain (loss) on investments 1.00 (1.23) .40 (.05) .82
___ ___ ___ ___ ___
Total from Investment Operations.................... 1.74 (.55) 1.15 .67 1.56
___ ___ ___ ___ ___
Distributions:
Dividends from investment income-net.................. (.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................................. (.75) (.70) (.77) (.72) (.74)
___ ___ ___ ___ ___
Net asset value, end of year.......................... $12.88 $11.89 $13.14 $12.76 $12.81
===_ === === === ===
TOTAL INVESTMENT RETURN(5)................................ 14.98% (4.24%) 9.10% 5.47% 13.51%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... .85% 1.02%(6) 1.40%(6) 1.67% 1.91%
Ratio of net investment income to average net assets.. 5.98% 5.59% 5.56% 5.70% 6.09%
Portfolio Turnover Rate............................... 171.63% 165.00% 74.00% 30.00% 50.00%
Net Assets, end of year (000's Omitted)............... $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
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 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) Without the voluntary reimbursement and/or waiver if 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.
</TABLE>
See notes to financial statements.
<PAGE>
Premier Limited Term Government Securities 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 year 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, December 31, December 31,
PER SHARE DATA: 1995(2) 1995(2) 1995(3)
______ ______ ______
<S> <C> <C> <C>
Net asset value, beginning of year.................... $11.89 $11.89 $11.89
___ ___ ___
Investment Operations:
Investment income_net................................ .68 .68 .77
Net realized and unrealized gain on investments....... .99 1.00 1.01
___ ___ ___
Total from Investment Operations.................... 1.67 1.68 1.78
___ ___ ___
Distributions;
Dividends from investment income-net.................. (.68) (.68) (.78)
___ ___ ___
Net asset value, end of year.......................... $12.88 $12.89 $12.89
=== === ===
TOTAL INVESTMENT RETURN(4)................................ 14.40% 14.48% 15.34%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... 1.35% 1.35% .64%
Ratio of net investment income to average net assets.. 5.17% 4.83% 6.20%
Portfolio Turnover Rate............................... 171.63% 171.63% 171.63%
Net Assets, end of year (000's Omitted)............... $274 _ $183
<FN>
________
(1) Financial highlights for the period ended December 31, 1994 for Class B,
Class C and Class R 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) On April 4, 1994 the Fund commenced offering Trust shares which were
redesignated Class R shares on October 17, 1994.
(4) Exclusive of sales load.
</TABLE>
See notes to financial statements.
<PAGE>
Premier Limited Term Government Securities Fund
______________________________________-
NOTES TO FINANCIAL STATEMENTS
NOTE 1_Significant Accounting Policies:
Premier Limited Term Government Securities Fund (the "Fund") is a
diversified fund seeking high current income consistent with the preservation
of capital by investing primarily in debt obligations issued or guaranteed by
the U.S. Government or its agencies or instrumentalities. 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 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)
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 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 amortization of discount and premium on investments is
recognized on the accrual basis.
<PAGE>
Premier Limited Term Government Securities Fund
______________________________________-
NOTES TO FINANCIAL STATEMENTS (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 $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, 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 shares was $282. For the year
<PAGE>
Premier Limited Term Government Securities Fund
______________________________________-
NOTES TO FINANCIAL STATEMENTS (continued)
ended December 31, 1995, the distribution fee for Class A and Class B
shares was $40,218 and $564, 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 purchases and sales (including paydowns) of
investment securities, excluding short-term securities, during the year ended
December 31, 1995, amounted to $27,004,714 and $30,552,814, respectively.
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 Limited Term Government Securities 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 Limited Term Government Securities 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
financial 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 Limited Term Government Securities 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>
Premier Limited Term Government Securities Fund
______________________________________-
Important Tax Information (Unaudited)
For State individual income tax purposes, the Fund hereby designates
87.10% of the ordinary income dividends paid during its fiscal year ended
December 31, 1995 as attributable to interest income from direct obligations
of the United States government. Such dividends are currently exempt from
taxation for individual income tax purposes in most states, including New
York, California and the District of Columbia.
<PAGE>
[Dreyfus lion "d" logo]
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 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. PLGAR9512
[Dreyfus logo]
<PAGE>
Annual Report
__________-
Premier Limited Term
Government Securities
Fund
__________-
December 31, 1995
[LION]
<PAGE>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN PREMIER LIMITED TERM GOVERNMENT SECURITIES FUND
CLASS A SHARES AND THE LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT INDEX
EXHIBIT A:
_____________________________________________________
| | PREMIER LIMITED | LEHMAN BROTHERS |
| | TERM GOVERNMENT | INTERMEDIATE |
| PERIOD | SECURITIES FUND | GOVERNMENT |
| |(CLASS A SHARES) | INDEX* |
|-----------|--------------------| ------------------|
| 3/3/86 | 9,697 | 10,000 |
| 12/31/86 | 10,511 | 10,977 |
| 12/31/87 | 10,618 | 11,373 |
| 12/31/88 | 11,282 | 12,100 |
| 12/31/89 | 12,510 | 13,635 |
| 12/31/90 | 13,421 | 14,938 |
| 12/31/91 | 15,235 | 17,045 |
| 12/31/92 | 16,068 | 18,226 |
| 12/31/93 | 17,529 | 19,715 |
| 12/31/94 | 16,786 | 19,371 |
| 12/31/95 | 19,300 | 22,163 |
|-----------|--------------------| ------------------|
*Source: Lehman Brothers
