DREYFUS CORE VALUE FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of Dreyfus Core Value Fund for
its semi-annual reporting period ended June 30, 1997, as shown in the
following table:
<TABLE>
<CAPTION>
Total Return*
_______________
<S> <C>
Investor Shares 18.20%
Institutional Shares 18.26%
Class R Shares 18.34%
Standard & Poor's 500 Composite Stock Price
Index ("S&P 500")** 20.60%
</TABLE>
ECONOMIC REVIEW
Since ending its 1995 slowdown, the economy has sustained an above-trend
growth trajectory, slowing only briefly in the third
quarter of 1996 and again in recent months. Meanwhile, the level of economic
activity is now at the point where economic resources are near full
deployment. Yet price inflation remains quiescent, boosting the purchasing
power of incomes and contributing to the best sense of economic well-being in
decades. In this environment, monetary policy has been benign, allowing
market interest rates to sway within an eighteen-month trading range and
corporate profits to rise steadily. However, even while the jury is out on
the inflation risks ahead, the Federal Reserve Board (the "Fed") has
indicated that it wouldn't hesitate to tighten credit policy if circumstances
require.
Real Gross Domestic Product growth grew an above-trend 3.1% from year-end
1995 to year-end 1996, then accelerating to more than 4.0% in the first half
of this year. However, this year's pattern shows growth concentrated into the
first quarter, when GDP surged 5.9%, while a slowdown to near 2.5% is
apparent in the second quarter. The slower recent growth is attributable to a
lackluster retail sector, even though exports and capital spending are
gaining. A key issue is whether the absence of pent-up demand could lead to a
sluggish consumer profile and, hence, slow GDP growth in the near future.
Indeed, factors that could underpin a resumption of stronger spending are
rising: real consumer purchasing power, soaring household wealth and all-time
highs in consumer confidence. Additionally, inventories remain lean, muting
the prospect of yet slower economic growth.
Alongside evidence of a slower retail sector in the second quarter are
reports showing that unemployment fell below 5% and industrial capacity
utilization tightened towards its 1994 highs. With these developments, the
economy now is operating at a high level with little slack. Yet wage
inflation abated in the second quarter while price inflation continued to
decelerate. The absence of any troublesome sign of inflation has kept market
interest rates in a long-standing trading range. Even corporate profits
continue to surprise on the upside.
Views on the need to tighten monetary policy are divergent. There are
those who believe that inflation pressure points are just different than in
the past and others who believe the inflation cycle has been eliminated by
global factors and technology. However, the Fed appears willing to err on the
cautious side, if necessary, in the next several months.
MARKET OVERVIEW
When the closing bell rang on June 30, the S&P 500 showed a six-month
gain of 20.60%, the Dow Jones Industrial Average was up 20.12%, the Nasdaq
Composite Index had gained 11.70% and even small capitalization stocks
represented by the Russell 2000 Index were up by 10.20%.***
All these major indexes set new records repeatedly during the half-year.
However, it wasn't clear sailing, and not all sectors profited equally. As
recently as April, just after the Fed voted its latest increase in interest
rates, broad stock averages were only modestly ahead for the year. Technology
and small cap stocks were lagging the larger, better-known issues.
A turnaround began in mid-April that carried all markets to new highs.
The main propellant was the expanding yet noninflationary economy. At the
same time, corporate profits, generally speaking, showed continued strength.
Clearly, all the hard work of corporate reorganization and down-sizing in
recent years was paying off. Before each scheduled meeting of the Fed, there
was apprehension that interest rates might be boosted again. Yet the
underlying tone of the market was one of confidence and strength. No doubt
the steady influx of retirement money and other assets into equity mutual
funds was an important factor in the market's buoyancy.
The best performing industries in the past six months included financial
stocks, pharmaceuticals, semiconductor and computer shares and
communications. Laggards included casino gambling, heavy construction,
precious metals and electric utilities.
As the market averages advanced, an increasing number of warnings were
being issued to the investing public to remember that what goes up might come
down _ that many stocks appeared richly priced in relation to earnings
prospects. In day-to-day stock trading, however, there was little evidence by
the end of June that the cautionary advice was affecting stock prices.
PORTFOLIO FOCUS
The Fund's six-month performance was led by strong gains in its financial
services, consumer durables, and consumer services holdings. The Fund's
overweighted position, relative to the S&P 500, in financial services stocks
generated handsome outperformance in that sector as rapid consolidation in
the banking and brokerage industries continued. At the same time, the
overweighted position in Philips Electronics NV bolstered returns within the
consumer durables sector. Large holdings in Wal-Mart Stores and Woolworth
contributed to outperformance in the consumer services sector.
The technology and health care sectors have been two areas of weakness
for the Fund so far this year because high valuation levels in these sectors
precluded the Fund from investing significantly in these sectors.
Looking ahead, we currently intend to continue the Fund's broad
diversification across economic sectors and its emphasis on undervalued
securities.
We appreciate the opportunity to serve your investment needs.
Sincerely,
[Valerie J. Sill signature logo]
Valerie J. Sill
Portfolio Manager
July 17, 1997
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.
*** SOURCE: LIPPER ANALYTICAL SERVICES, INC. _ The Dow Jones Industrial
Average is a price-weighted average of 30 actively traded blue chip stocks.
The Nasdaq Composite Index is an unmanaged index which monitors stocks traded
over-the-counter. The Russell 2000 Index is a widely accepted unmanaged index
of small cap stock performance.
<TABLE>
<CAPTION>
DREYFUS CORE VALUE FUND
STATEMENT OF INVESTMENTS JUNE 30, 1997 (UNAUDITED)
Common Stocks_97.6% Shares Value
________ __________
<S> <C> <C>
Aerospace &
Military Technology_.0% C.S.F. (Thompson)....................... 6,805 $ 175,292
Singapore Airlines..................... 5,000 12,524
_____________
187,816
_____________
Appliances_3.7% Guandong Kelon Electrical Holding 20,000 19,105
Philips Electronics, ADR............... 327,600 23,546,250
Solid Group............................ 130,000 21,214
Sony 5,000 435,864
Tarkett 10,000 257,954
_____________
24,280,387
_____________
Automobiles_.2% Fiat Spa 53,000 190,825
Honda Motor............................ 12,000 361,257
Toyota Motor........................... 16,000 471,902
Volkswagen............................. 350 268,243
_____________
1,292,227
_____________
Banking_1.0% ABN-Amro 16,468 306,888
Affin Holdings......................... 105,000 249,633
Australia & New Zealand Banking........ 55,000 410,281
Banco BHIF, ADS........................ 4,000 84,500
Banco Pinto & Sotto Mayor.............. 4,000 33,367
Banco Totta & Acores................... 15,000 250,511
Bank Handlowy W Warszawie, GDR......... 4,600 (a) 57,040
Bank Leumi Le-Israel................... 34,000 51,641
Christiania Bank....................... 65,000 221,791
Corporacion Bancaria de Espana, ADS.... 20,000 567,500
Creditanstalt-Bankverein............... 1,200 161,716
Deutsche Bank.......................... 10,000 584,122
Development Bank of Singapore.......... 34,000 428,212
Dexia France........................... 3,000 291,961
HSBC 11,596 348,786
Istituto Mobiliare Italiano, ADS....... 10,400 283,400
Komercni Banka, GDR.................... 1,000 (a,b) 20,750
Kookmin Bank........................... 1,629 31,056
Kookmin Bank, GDR...................... 10,985 (b) 238,924
MISR INTERNATIONAL BANK, GDR........... 1,000 (a) 16,900
National Westminster Bank.............. 45,038 605,166
PT Bank Bali........................... 35,000 93,583
Philippine National Bank............... 6,187 (a) 42,033
Schweizerischer Banksverein............ 1,700 454,381
Societe Generale....................... 3,984 444,663
_____________
6,278,805
_____________
Basic Industries_4.7% Bethlehem Steel 216,500 (a) 2,259,719
Great Lakes Chemical................... 72,300 3,786,713
IMC Global............................. 182,200 6,377,000
James River............................ 265,500 9,823,500
Louisiana Pacific...................... 157,000 3,316,625
DREYFUS CORE VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
__________ __________
Basic Industries (continued) Reynolds Metals 80,500 $ 5,735,625
_____________
31,299,182
_____________
Beverages & Tobacco_.0% Mikuni Coca Cola 22,000 326,353
_____________
Broadcasting & Publishing_.0% Marieberg Tidnings 10,000 248,753
_____________
Building Materials_.1% Apasco SA de CV 8,000 57,316
Barlow 3,000 32,660
Barlow, ADR............................ 6,045 65,362
Boral 133,468 419,369
Sekisui Chemical....................... 30,000 303,665
_____________
878,372
_____________
Capital Goods_4.6%.. Blue Square Chain Stores 8,000 (a) 78,011
Controladora Comercial Mexicana, GDS... 3,600 66,600
Cooper Industries...................... 29,700 1,477,575
Ingersoll-Rand......................... 83,000 5,125,250
Litton Industries...................... 94,500 (a) 4,565,531
Lockheed Martin........................ 77,900 8,067,519
Northrop Grumman....................... 35,600 3,126,125
Raytheon............................... 148,600 7,578,600
_____________
30,085,211
_____________
Chemicals_1.3% AKZO Nobel, ADS 4,100 283,412
Bayer 10,000 384,179
Imperial Chemical Industries, ADR...... 128,500 7,308,438
PT Indorama Synthetics................. 45,000 (a) 40,724
Polifin 25,000 46,878
Reliance Industries, GDR............... 4,000 (a,b) 92,000
Rhone-Poulenc, ADR..................... 9,327 388,236
Srithai Superware...................... 7,000 18,074
_____________
8,561,941
_____________
Construction & Housing_.8% Chudenko 6,095 163,278
Fluor 81,600 4,503,300
Hollandsche Beton Groep................ 1,542 351,504
Nishimatsu Construction................ 40,000 279,232
Sekisui House.......................... 30,000 303,665
_____________
5,600,979
_____________
Consumer Durables_2.0% Black & Decker 85,000 3,160,938
Cooper Tire & Rubber................... 2,200 48,400
General Motors......................... 96,500 5,373,844
Maytag................................. 174,000 4,545,750
Oriental Holdings...................... 6,000 45,172
Perusahaan Otomobil Nasional........... 51,400 240,330
_____________
13,414,434
_____________
Consumer Non-durables_11.8% Al-Ahram Beverages, GDR 1,300 (a,b) 26,585
Archer-Daniels-Midland................. 403,500 9,482,250
Dole Food.............................. 67,300 2,877,075
DREYFUS CORE VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
__________ __________
Consumer Non-durables
(continued) Fruit of the Loom, Cl. A................ 87,000 (a) $ 2,697,000
Harcourt General....................... 128,400 6,115,050
Hasbro................................. 180,600 5,124,525
Loews 84,000 8,410,500
Mattel 144,600 4,898,325
Philip Morris Cos...................... 242,100 10,743,188
Polaroid............................... 178,000 9,879,000
RJR Nabisco Holdings................... 446,300 14,727,900
Reebok International................... 54,200 2,533,850
_____________
77,515,248
_____________
Consumer Services_12.9% ACNielsen 282,900 (a) 5,551,912
Ara 15,000 (a) 52,882
Block (H & R).......................... 256,000 8,256,000
Browning-Ferris Industries............. 157,500 5,236,875
Deluxe 171,000 5,835,375
Footstar............................... 131,140 (a) 3,426,032
ITT 142,400 (a) 8,695,300
News, ADS.............................. 95,000 1,828,750
Rite Aid............................... 120,900 6,029,888
Tele-Communications Liberty Media...... 81,000 (a) 1,923,750
Toys R Us.............................. 311,300 (a) 10,895,500
Viacom, Cl. B.......................... 187,700 (a) 5,631,000
Wal-Mart Stores........................ 271,500 9,180,094
Woolworth.............................. 497,000 (a) 11,928,000
_____________
84,471,358
_____________
Data Processing_.0% Canon 20,000 544,503
_____________
Electrical & Electronics_2.0% Alcatel Alsthom, ADS 432,016 10,908,404
Hitachi 53,000 591,972
Hongkong Electric...................... 75,000 302,072
Mabuchi Motor.......................... 7,000 406,195
Siemens................................ 10,000 593,580
Toshiba................................ 75,000 482,330
_____________
13,284,553
_____________
Electronics & Instruments_.1% Murata Manufacturing 15,400 612,775
QPL International...................... 75,000 63,416
Samsung Electronics.................... 304 33,381
Samsung Electronics, GDR............... 508 (a,b) 29,464
Vestel Electronik Sanayi Ve Ticaret.... 340,000 19,312
_____________
758,348
_____________
Energy_8.7% British Petroleum, ADS 79,200 5,930,100
Coastal................................ 71,800 3,818,863
Dresser Industries..................... 109,200 4,067,700
ENI, ADS............................... 7,300 415,187
Elf Aquitaine.......................... 2,393 258,130
Elf Aquitaine, ADS..................... 185,958 10,123,089
DREYFUS CORE VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_________ _________
Energy (continued) Exxon 105,500 $ 6,488,250
Fletcher Challenge Energy.............. 41,000 124,029
Huaneng Power International, ADS....... 1,700 (a) 43,350
Magyar Olaj ES Gazipari................ 4,000 89,500
Mobil 80,800 5,645,900
Oryx Energy............................ 330,000 (a) 6,971,250
Repsol 6,000 253,716
Repsol, ADS............................ 7,000 297,063
Tosco 274,300 8,211,856
Unocal 94,200 (a) 3,656,138
YPF Sociedad Anonima, ADS.............. 15,500 476,625
_____________
56,870,746
_____________
Energy Equipment
& Services_.0% Ingwe Coal.............................. 7,500 47,982
Petronas Dagangan...................... 20,000 47,549
_____________
95,531
_____________
Financial Services_19.0% Ahmanson (H.F.) & Co. 199,800 8,591,400
Allmerica Financial.................... 95,200 3,796,100
Allstate............................... 120,600 8,803,800
American Express....................... 68,500 5,103,250
BankAmerica............................ 219,060 14,143,061
CIGNA.................................. 65,200 11,573,000
Credit Saison.......................... 28,750 702,443
Equitable Cos.......................... 285,600 9,496,200
Everest Reinsurance.................... 177,200 7,021,550
First National Bank Holdings........... 6,300 54,203
General Re............................. 32,400 5,896,800
Great Western Financial................ 208,000 11,180,000
Grupo Financiero Inbursa............... 24,000 102,321
Guoco Group............................ 15,000 79,003
Hartford Financial Services Group...... 53,100 4,394,025
MBF Capital............................ 20,000 36,771
Morgan Stanley Dean Witter............. 159,000 6,846,938
NationsBank............................ 97,500 6,288,750
Nichiei 4,300 499,040
Republic New York...................... 41,000 4,407,500
SAFECO................................. 186,600 8,711,888
State Bank of India, GDR............... 2,300 (a,b) 60,950
Student Loan Marketing Association..... 31,900 4,051,300
Uniao de Bancos Brasileiros, GDR....... 1,500 (a) 55,687
Washington Mutual...................... 48,160 2,877,560
_____________
124,773,540
_____________
Foods & Related Products_.2% Danone 2,188 361,471
Daya Guna Samudera..................... 16,000 (a) 28,795
Kao 45,000 624,346
Nestle 225 296,612
Pick Szeged, GDR....................... 700 (b) 50,400
DREYFUS CORE VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
__________ __________
Foods & Related
Products (continued).. Tablex 10,029 $ 32,890
Universal Robina....................... 165,000 60,114
_____________
1,454,628
_____________
Forest & Paper Products_.1% Aracruz Celulose, ADS 2,700 55,012
Fletcher Challenge Forests............. 1,640 2,386
Jaya Tiasa Holdings.................... 6,000 30,194
Koninklijke KNP........................ 15,000 341,395
Portucel Industrial-Empresa Produtora de Celulose 6,000 44,463
Smith (David S.)....................... 56,404 176,450
_____________
649,900
_____________
Health Care_7.6% Aetna 181,000 18,529,875
American Home Products................. 35,500 2,715,750
Bard (C.R.)............................ 111,700 4,056,106
Columbia/HCA Healthcare................ 231,900 9,116,569
Foundation Health Systems, Cl. A....... 189,800 (a) 5,753,312
Medeva................................. 61,000 260,358
Novartis............................... 48 3,850
Pacificare Health Systems, Cl. B....... 41,300 (a) 2,638,038
Pharmacia & Upjohn..................... 10,200 354,450
Schering Plough........................ 3,600 172,350
Vencor 1,100 (a) 46,475
Wellpoint Health Networks.............. 130,300 (a) 5,977,512
Yamanouchi Pharmaceutical.............. 17,000 456,894
_____________
50,081,539
_____________
Industrial Components_.2% Leader Universal Holdings 25,000 44,974
LucasVarity............................ 105,000 363,418
Michelin............................... 5,200 312,221
Minebea................................ 50,000 532,286
Mirgor S.A.C.I.F.I.A., GDR............. 22,000 (a,b) 62,700
_____________
1,315,599
_____________
Insurance_.2% Axa-UAP 2,500 155,466
Bangkok Insurance...................... 1,600 26,885
Dai-Tokyo Fire & Marine Insurance...... 75,000 434,555
Pacific & Orient Berhad................ 18,000 42,794
Zurich Versicherungs................... 1,000 397,673
_____________
1,057,373
_____________
Leisure Time_.0% Harbour Centre Development 22,000 35,216
Stakis 125,000 214,240
_____________
249,456
_____________
Machinery_.3% Fuji Machine Manufacturing 7,000 253,490
GEA 1,000 393,809
Laird Group............................ 45,000 261,706
Mitsubishi Heavy Industries............ 68,000 521,571
PT Komatsu Indonesia................... 40,000 (a) 62,526
DREYFUS CORE VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_________ _________
Machinery (continued) PT United Tractors 8,000 $ 29,617
Scania AB.............................. 5,000 152,232
Scania AB `A', ADS..................... 2,250 66,656
Scania AB `B', ADS..................... 2,250 66,938
Scapa Group............................ 50,862 178,578
Sulzer 320 273,785
_____________
2,260,908
_____________
Merchandising_.2% Companhia Brasileira de Distribuicao Grupo
Pao de Acucar, ADR................... 2,600 (b) 59,150
Ito-Yokado............................. 10,000 580,279
Magazine Zum Globus.................... 450 243,327
Matsumotokiyoshi....................... 2,000 84,817
S.A. Importadora Y Exportadora de la Patagonia 1,750 25,729
Safeway................................ 73,000 422,115
_____________
1,415,417
_____________
Metals_.6% China Steel, GDR 1,267 (a,b) 27,061
Companhia Vale do Rio Doce, ADR........ 3,500 79,187
Malayawata Steel....................... 27,000 41,724
Pohang Iron & Steel, ADS............... 750 76,988
Potash Corp. Saskatchewan.............. 35,500 2,664,719
Rio Tinto.............................. 31,781 553,427
Steel Authority of India, GDR.......... 3,000 (a,b) 26,490
Tubos de Acero de Mexico, ADR.......... 2,600 (a) 47,937
Usinor Sacilor......................... 12,000 216,419
_____________
3,733,952
_____________
Miscellaneous Materials_.0% Bunzl 95,871 310,125
Corticeira Amorim...................... 3,000 29,642
Cristalerias de Chile, ADS............. 3,300 78,788
Empaques Ponderosa..................... 62,000 (a) 50,832
_____________
469,387
_____________
Multi Industry_.3% ALFA 4,558 31,161
BTR 113,685 388,748
Desc S.A. de C.V., Ser. B.............. 8,000 58,527
Desc S.A., Ser. C...................... 80 578
First Philippine....................... 3,250 4,502
Hunter Douglas......................... 3,943 335,275
Orkla 3,000 203,502
Quinenco, ADS.......................... 2,000 (a) 37,000
Swire Pacific.......................... 40,000 60,673
Tomkins................................ 122,833 531,425
_____________
1,651,391
_____________
Real Estate_.0% Cheung Kong 26,000 256,761
IOI Properties......................... 20,000 38,039
_____________
294,800
_____________
DREYFUS CORE VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
__________ __________
Recreation_.0% China Hong Kong Photo Products Holdings 149,000 $ 43,278
Sankyo................................. 10,000 300,174
_____________
343,452
_____________
Technology_5.3% Cabletron Systems 95,000 (a) 2,689,687
General Instrument..................... 315,800 (a) 7,895,000
International Business Machines........ 85,000 7,665,938
Scientific-Atlanta..................... 246,000 5,381,250
Silicon Graphics....................... 276,600 (a) 4,149,000
Sun Microsystems....................... 95,500 (a) 3,554,391
Xerox 43,100 3,399,512
_____________
34,734,778
_____________
Telecommunications_.4% Cable & Wireless, ADR 12,700 354,806
Compania de Telecomunicacoes de Chile, ADR 825 27,225
Hellenic Telecommunication Organization, GDR 26,500 (a) 306,075
Koor Industries........................ 600 53,213
Philippine Long Distance Telephone, ADS 4,200 269,850
Royal PTT Nederland, ADS............... 6,951 275,433
SK Telecom, ADS........................ 7,753 78,015
Stet Societa Finanziaria Telefonica S.p.A. 125,000 433,559
Tele Danmark, ADS...................... 11,000 287,375
Telecomunicacoes Brasileiras, ADS...... 600 91,050
Telefonica de Argentina, ADS........... 26,400 91,094
Telefonica del Peru, ADS............... 12,500 327,344
Videsh Sanchar Nigam, GDR.............. 3,000 (a,b) 62,250
_____________
2,657,289
_____________
Transportation_1.9% Air New Zealand 59,818 182,989
Burlington Northern Santa Fe........... 54,400 4,889,200
CSX 118,800 6,593,400
Singapore Airlines..................... 27,500 246,292
Yamato Transport....................... 38,500 480,410
_____________
12,392,291
_____________
Utilities_7.4% Bell Atlantic 57,200 4,340,050
CMS Energy............................. 112,800 3,976,200
Czeske Energeticke Zavody.............. 1,100 (a) 30,395
Electricidade de Portugal, ADR......... 2,200 (a) 79,200
Entergy................................ 159,000 4,352,625
Gas Y Electridad....................... 6,000 322,134
Illinova 183,100 4,028,200
Korea Electric Power, ADS.............. 2,400 71,783
MCI Communications..................... 152,500 5,885,552
NYNEX.................................. 81,500 4,696,438
New England Electric System............ 84,800 3,137,151
PT Indosat, ADR........................ 8,800 263,450
Pinnacle West Capital.................. 81,000 2,435,062
DREYFUS CORE VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
__________ __________
Utilities (continued) Powergen 40,525 $ 482,150
Sprint 113,900 5,993,988
360 (Degrees) Communications........... 169,300 (a) 2,899,263
Tenaga Nasional........................ 17,000 82,854
Unicom................................. 186,900 4,158,525
VEBA 6,000 337,059
Viag 800 363,657
_____________
47,935,736
_____________
Wholesale &
International Trade_.0% Ferreyros, ADR.......................... 1,400 (b) 31,850
_____________
TOTAL COMMON STOCKS
(cost $519,295,382).................. $643,498,033
===============
Preferred Stocks_.0%
Appliances_.0% Brasmotor 300 $ 66,890
_____________
Banking_.0% Banco Itau 100 56,020
Bank Austria........................... 5,040 154,610
_____________
210,630
_____________
Building Materials_.0% Companhia Cimento Portland Itau 200 68,749
_____________
Energy_.0% Petroleo Brasileiro 100 (a) 27,779
_____________
Telecommunications_.0% Ericsson Telecomunicacoes 1,000 59,457
_____________
Utilities_.0% Companhia Paranaense de Energia-Copel 3,000 55,740
Eletropaulo-Electricidade de Sao Paulo. 200 (a) 58,527
_____________
114,267
_____________
TOTAL PREFERRED STOCKS
(cost $401,279)...................... $ 547,772
==============
Principal
Short-Term Investments_1.8% Amount
_______________
Commercial Paper; General Electric Corporation,
7.10%, due 7/1/97
(cost $11,941,000)................... $..11,941,000 $ 11,941,000
==============
TOTAL INVESTMENTS (cost $531,637,661)....................................... 99.4% $655,986,805
======= ==============
CASH AND RECEIVABLES (NET).................................................. .6% $ 3,794,458
======= ==============
NET ASSETS.................................................................. 100.0% $659,781,263
======= ==============
DREYFUS CORE VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Notes to Statement of Investments:
(a) Non-income producing.
(b) Securities 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, 1997, these securities amounted to $788,574 or approximately .1%
of net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS CORE VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1997 (UNAUDITED)
Cost Value
___________ ___________
ASSETS: Investments in securities_See Statement of Investments $531,637,661 $655,986,805
Cash....................................... 421,181
Cash denominated in foreign currencies..... 2,171,437 2,160,398
Receivable for investment securities sold.. 5,340,333
Dividends and interest receivable.......... 1,253,095
Receivable for shares of Beneficial Interest subscribed 55,935
Net unrealized appreciation on forward
....... currency exchange contracts_Note 1(d) 73
_____________
665,217,820
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 598,771
Due to Distributor......................... 8,920
Payable for investment securities purchased 4,199,863
Payable for shares of Beneficial Interest redeemed 626,503
Loan commitment fees payable_Note 4........ 2,500
_____________
5,436,557
_____________
NET ASSETS.................................................................. $659,781,263
==============
REPRESENTED BY: Paid-in capital............................ $478,111,627
Accumulated undistributed investment income_net203,575
Accumulated net realized gain (loss) on investments and
............... foreign currency transactions 57,130,107
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 124,335,954
_____________
NET ASSETS.................................................................. $659,781,263
==============
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
_____________________________
Investor Institutional Class R
Shares Shares Shares
___________ ____________ ____________
<S> <C> <C> <C>
________
Net Assets.............................................. $570,489,438 $75,794,540 $13,497,285
Shares Outstanding....................................... 16,473,015 2,189,522 388,986
NET ASSET VALUE PER SHARE................................... $34.63 $34.62 $34.70
======= ======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CORE VALUE FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $211,626 foreign taxes
withheld at source).................... $ 5,732,181
Interest................................... 292,252
_____________
Total Income......................... $ 6,024,433
EXPENSES: Management fee_Note 2(a)................... 2,682,945
Distribution fees_Note 2(b)................ 694,244
Loan commitment fees_Note 4................ 7,500
_____________
Total Expenses....................... 3,384,689
Less_reduction in management fee due to
undertaking_Note 2(a).................. (48,650)
_____________
Net Expenses......................... 3,336,039
_____________
INVESTMENT INCOME_NET....................................................... 2,688,394
_____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 3:
Net realized gain (loss) on investments and
foreign currency transactions.......... $ 58,192,549
Net realized gain (loss) on forward currency
exchange contracts..................... (14,961)
_____________
Net Realized Gain (Loss)............. 58,177,588
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions...... 41,449,357
_____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 99,626,945
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $102,315,339
=============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS CORE VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
_____________ __________________
OPERATIONS:
Investment income_net.................................................. $ 2,688,394 $ 5,073,942
Net realized gain (loss) on investments................................. 58,177,588 101,383,784
Net unrealized appreciation (depreciation) on investments............... 41,449,357 (5,105,765)
_____________ __________________
Net Increase (Decrease) in Net Assets Resulting from Operations..... 102,315,339 101,351,961
_____________ __________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Investor shares....................................................... (2,288,549) (4,113,567)
Institutional shares.................................................. (351,342) (647,083)
Class R shares........................................................ (70,077) (124,067)
Net realized gain on investments:
Investor shares....................................................... (15,972,710) (80,205,392)
Institutional shares.................................................. (2,295,971) (11,721,876)
Class R shares........................................................ (378,265) (1,866,594)
_____________ __________________
Total Dividends..................................................... (21,356,914) (98,678,579)
_____________ __________________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Investor shares....................................................... 72,542,440 110,377,880
Institutional shares.................................................. 4,351,478 14,132,483
Class R shares........................................................ 847,866 11,380,217
Dividends reinvested:
Investor shares...................................................... 16,063,809 74,407,664
Institutional shares................................................ 2,543,768 11,944,449
Class R shares........................................................ 448,276 1,990,968
Cost of shares redeemed:
Investor shares....................................................... (74,963,467) (101,845,407)
Institutional shares.................................................. (12,274,948) (30,775,024)
Class R shares........................................................ (1,064,721) (1,424,273)
_____________ __________________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions 8,494,501 90,188,957
_____________ __________________
Total Increase (Decrease) in Net Assets......................... 89,452,926 92,862,339
NET ASSETS:
Beginning of Period................................................. 570,328,337 477,465,998
_____________ __________________
End of Period........................................................... $ 659,781,263 $ 570,328,337
============= ==============
Undistributed investment income_net....................................... $ 203,575 $ 255,149
_____________ __________________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS CORE VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
_________________________________________
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
_____________ __________________
CAPITAL SHARE TRANSACTIONS:
Investor Shares
Shares sold.......................................................... 2,249,109 3,375,086
Shares issued for dividends reinvested................................ 529,410 2,435,917
Shares redeemed....................................................... (2,320,612) (3,126,844)
_____________ __________________
Net Increase (Decrease) in Shares Outstanding 457,907 2,684,159
============= ==============
Institutional Shares
Shares sold........................................................... 138,601 430,202
Shares issued for dividends reinvested................................ 83,828 391,174
Shares redeemed....................................................... (399,070) (965,361)
_____________ __________________
Net Increase (Decrease) in Shares Outstanding (176,641) (143,985)
============= ==============
Class R Shares
Shares sold........................................................... 26,154 354,824
Shares issued for dividends reinvested................................ 14,709 65,018
Shares redeemed....................................................... (33,344) (44,489)
_____________ __________________
Net Increase (Decrease) in Shares Outstanding 7,519 375,353
============= ==============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
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.
Six Months Ended Investor Shares(1)
_____________________________________________________
June 30, 1997 Year Ended December 31,
_____________________________________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994(2) 1993(3) 1992
____________ ______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $30.40 $30.13 $24.56 $27.80 $25.46 $27.40
______ ______ _______ _______ _______ _______
Investment Operations:
Investment income_net................. .14 .31 .41 .42 .31 .36
Net realized and unrealized gain (loss)
on investments...................... 5.23 6.03 8.24 (.29) 3.86 .70
______ ______ _______ _______ _______ _______
Total from Investment Operations...... 5.37 6.34 8.65 .13 4.17 1.06
______ ______ _______ _______ _______ _______
Distributions:
Dividends from investment income_net.. (.14) (.30) (.45) (.40) (.30) (.36)
Dividends from net realized gain
on investments (1.00) (5.77) (2.63) (2.97) (1.53) (2.64)
______ ______ _______ _______ _______ _______
Total Distributions................... (1.14) (6.07) (3.08) (3.37) (1.83) (3.00)
______ ______ _______ _______ _______ _______
Net asset value, end of period........ $34.63 $30.40 $30.13 $24.56 $27.80 $25.46
====== ======= ======= ===== ======== =======
TOTAL INVESTMENT RETURN................... 18.20%(4) 21.44% 35.56% .38% 16.51% 4.03%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .56%(4) 1.13% 1.13% 1.11% 1.15% 1.22%
Ratio of net investment income
to average net assets............... .44%(4) .96% 1.43% 1.47% 1.13% 1.33%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .01%(4) .02% .02% .01% .01% __
Portfolio Turnover Rate............... 48.31%(4) 88.46% 54.42% 73.00% 75.00% 66.00%
Average commission rate paid (5)...... $.0459 $.0522 __ __ __ __
Net Assets, end of period (000's Omitted) $570,489 $486,816 $401,674 $317,868 $349,813 $423,286
(1) On February 1, 1993 existing 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 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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CORE VALUE FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Institutional Shares
_______________________________________________________________________
Six Months Ended Period Ended
June 30, 1997 Year Ended December 31, December 31,
__________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994(1) 1993(2,3)
____________ _______ ______ ________ ____________
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $30.38 $30.12 $24.56 $27.80 $25.96
________ _______ ______ ________ ______
Investment Operations:
Investment income_net................... .16 .36 .47 .47 .32
Net realized and unrealized gain (loss)
on investments........................ 5.24 6.01 8.20 (.31) 3.38
________ _______ ______ ________ ______
Total from Investment Operations........ 5.40 6.37 8.67 .16 3.70
________ _______ ______ ________ ______
Distributions:
Dividends from investment income_net.... (.16) (.34) (.48) (.43) (.33)
Dividends from net realized gain
on investments (1.00) (5.77) (2.63) (2.97) (1.53)
________ _______ ______ ________ ______
Total Distributions..................... (1.16) (6.11) (3.11) (3.40) (1.86)
________ _______ ______ ________ ______
Net asset value, end of period.......... $34.62 $30.38 $30.12 $24.56 $27.80
====== ======= ====== ======== ========
TOTAL INVESTMENT RETURN..................... 18.26%(4) 21.57% 35.60% .49% 14.38%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets. .51%(4) 1.03% 1.03% 1.02% .95%(4)
Ratio of net investment income
to average net assets................. .48%(4) 1.07% 1.53% 1.57% 1.13%(4)
Decrease reflected in above expense ratios
due to undertakings by the Manager.... .01%(4) .02% .02% .01% __
Portfolio Turnover Rate................. 48.31%(4) 88.46% 54.42% 73.00% 75.00%
Average commission rate paid (5)........ $.0459 $.0522 __ __ __
Net Assets, end of period (000's Omitted) $75,795 $71,894 $75,607 $59,435 $79,656
(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 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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CORE VALUE FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class R Shares
_______________________________________________________________________
Six Months Ended Period Ended
June 30, 1997 Year Ended December 31, December 31,
__________________________
PER SHARE DATA: (Unaudited) 1996 1995 1993(2,3)
____________ _______ ________ ____________
<S> <C> <C> <C> <C>
Net asset value, beginning of period.... $30.46 $30.18 $24.56 $28.45
_______ _______ ________ _________
Investment Operations:
Investment income_net................... .18 .36 .62 .29
Net realized and unrealized gain (loss)
on investments........................ 5.24 6.08 8.16 (.83)
_______ _______ ________ _________
Total from Investment Operations........ 5.42 6.44 8.78 (.54)
_______ _______ ________ _________
Distributions:
Dividends from investment income_net.... (.18) (.39) (.53) (.38)
Dividends from net realized gain on investments (1.00) (5.77) (2.63) (2.97)
_______ _______ ________ _________
Total Distributions..................... (1.18) (6.16) (3.16) (3.35)
_______ _______ ________ _________
Net asset value, end of period.......... $34.70 $30.46 $30.18 $24.56
====== ======= ======= ========
TOTAL INVESTMENT RETURN..................... 18.34%(3) 21.74% 36.05% (2.31%)(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets. .44%(3) .88% .88% .35%(3)
Ratio of net investment income
to average net assets................. .56%(3) 1.23% 1.93% .70%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager.... .01%(3) .02% .02% .01%(3)
Portfolio Turnover Rate................. 48.31%(3) 88.46% 54.42% 73.00%
Average commission rate paid (4)........ $.0459 $.0522 __ __
Net Assets, end of period (000's Omitted) $13,497 $11,618 $185 $1,070
(1) 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.
(2) On August 4, 1994, the Fund commenced selling Trust shares. Effective
October 17, 1994 the Trust shares were reclassified as
Class R shares.
(3) Not annualized.
(4) For 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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS CORE VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Core Value Fund (the "Fund") is a series of The Dreyfus/Laurel
Funds Trust (the "Trust") which 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 three series including
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") is the distributor
of the Fund's shares. The Fund is authorized to issue an unlimited number of
shares of Beneficial Interest in the following classes of shares: Investor,
Institutional and Class R. 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.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(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 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.
(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 and to
settle foreign
DREYFUS CORE VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
currency transactions. 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 gain
on each open contract. In addition, the following summarizes open forward
currency exchange contracts at June 30, 1997:
<TABLE>
<CAPTION>
Unrealized
Foreign Currency Appreciation
Forward Currency Exchange Contracts Amounts Proceeds Value (Depreciation)
___________________ ______________ ___________ _______ _______________
<S> <C> <C> <C> <C>
Sales:
___
German Deutsche Marks, expiring 7/2/97... 640,000 $366,972 $366,867 $105
Purchases: Cost
_____ _______
British Pounds, expiring 7/2/97.......... 16,837 28,043 28,018 (25)
Singapore Dollars, expiring 7/1/97....... 36,983 25,884 25,877 (7)
_________
TOTAL.................................... $73
=========
</TABLE>
(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_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 .90% 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, commitment fees,
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). Each trustee 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. The
Chairman of the Board receives an additional annual fee of $25,000 per year.
These fees pertain to the following funds: The Dreyfus/Laurel Funds, Inc.,
The Dreyfus/Laurel Tax-Free Municipal Funds, and The
DREYFUS CORE VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Dreyfus/Laurel Funds Trust. These fees and expenses are allocated to each
series based on net assets. Amounts required to be paid by the Trust directly
to the non-interested Trustees, that would be applied to offset a portion of
the management fee payable to the Manager, are in fact paid directly by the
Manager to the non-interested Trustees.
The Manager had voluntarily agreed from January 1, 1997 through May 31,
1997 to waive at an annual rate of .02% of the value of the Fund's average
daily net assets of its fee mentioned above. The reduction in management fee,
pursuant to the undertaking, amounted to $48,650 during the period ended June
30, 1997.
(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 and Institutional shares. The Class R shares
bear no distribution fee. During the period ended June 30, 1997, the
distribution fee for the Investor and Institutional shares was $640,382 and
$53,862, 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.
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 period ended June 30, 1997 amounted to $285,355,894 and
$292,405,666, respectively.
At June 30, 1997, accumulated net unrealized appreciation on investments
and forward currency exchange contracts was $124,349,217, consisting of
$135,484,956 gross unrealized appreciation and $11,135,739 gross unrealized
depreciation.
At June 30, 1997, 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).
NOTE 4_BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended June
30, 1997, the Fund did not borrow under the Facility.
[Dreyfus lion "d" logo]
Registration Mark
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. CORESA976
[Dreyfus logo]
Registration Mark
Core Value
Fund
Semi-Annual
Report
June 30, 1997
Dreyfus Premier Limited Term High Income Fund
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this first report for the Dreyfus
Premier Limited Term High Income Fund. For the period from its inception on
May 30, 1997 to the end of its semi-annual reporting period on June 30, 1997,
your Fund provided the following total returns, income dividends and
annualized distribution rates:
<TABLE>
<CAPTION>
Approximate Annualized
Total Return* Income Dividends Distribution Rate**
____________ __________________ __________________
<S> <C> <C> <C>
Class A 0.77% $0.087 7.55%
Class B 0.73% $0.081 7.36%
Class C 0.71% $0.078 7.13%
Class R 0.80% $0.089 8.16%
</TABLE>
THE ECONOMY
Despite recent moderation in the rate of new job creation, the latest
reported unemployment rate (5% in June) was the lowest since 1973. When the
unemployment rate was last at that level, the inflation rate was heading
toward double-digit territory. Now, inflation is subdued; the Consumer Price
Index rose at an annual rate of just 1.4% for the twelve-month period through
May. Producer prices have risen a minuscule 0.6% over the same time period.
It has been unprecedented for the economy to have seven years of expansion,
low unemployment and low inflation at the same time.
Ever alert for signs of incipient inflation, the Federal Open Market
Committee, the policy-making arm of the Federal Reserve Board (the "Fed"),
has raised interest rates just once in more than two years. That hike came in
March 1997 when the Federal Funds rate was increased by one quarter of a
percentage point to 5.50%. (The Federal Funds rate is the rate of interest
that banks charge one another for overnight loans.) While there have been
some signs that wages are increasing (an area of particular concern to the
Fed), there have also been indications that the economy may be slowing from
its torrid first quarter pace when it surged at a 5.9% annual rate, the
biggest advance since the fourth quarter of 1987.
Indicating possible moderation in the rate of economic growth, retail
sales declined this spring despite record levels of consumer optimism about
the economy. The latest report on retail sales for March, April and May
showed a decline at an annual rate of 5% over the previous three months. This
marked the first three-month decline since the fall of 1981. Yet, despite
their sluggish spending at checkout counters, consumers' confidence in the
economy continues to climb, heavily influenced by increased job security and
low inflation.
Throughout the seven-year economic expansion, the pattern of consumer
spending has been stop-and-go, alternating between spurts of spending and
retrenchment. The 5% decline for the three months through May was preceded by
a 15% advance over the previous three-month period. On the production side of
the economy, a survey of corporate buyers compiled by the National
Association of Purchasing Management reported that growth in factory activity
eased slightly during June. The much-observed supplier-delivery component of
the survey, a measure of how quickly orders are being satisfied and a
possible sign of production bottlenecks, also fell modestly. In further
evidence of a slowing economy during the second quarter, the Commerce
Department recently reported that factory orders fell in May.
Rising incomes, low unemployment and quiescent inflation have all
contributed to a feeling of confidence, as measured by the Conference Board's
Index of Consumer Sentiment, that has been unmatched for 28 years. Many
economists feel that the optimistic consumer sentiment indicators provide a
floor to economic growth and will spur consumer spending later in the year,
particularly if the unemployment rate remains low and job security worries
recede further. We are mindful of the potent role that consumers play in the
economy _ their spending accounts for about two thirds of economic output. So
we remain alert to signs of any strain on productive capacity caused by
increases in consumer spending that might, in turn, lead to another
tightening in monetary policy by the Federal Reserve.
MARKET ENVIRONMENT
The continued slow, steady, and solid economic growth is very positive
for the high yield market, as well as generally all risk-oriented fixed
income investments. Fears of Fed intervention are subsiding, and we believe
market volatility should lessen in the near term. The short-term segment of
the high yield market has benefited from the strong refinancing climate _
strong equity markets and low interest rates _ as many issuers of high coupon
debt are redeeming their bonds at large premiums.
THE PORTFOLIO
The strong refinancing climate has currently raised the prices of many of
the Fund's holdings, even over the short period since inception. We believe
that lower-rated, higher-yielding bonds generally should perform well as long
as the equity and bond markets remain positive. The short-term focus of the
Fund's holdings can provide some protection from future market volatility.
The current investment strategy of the Fund aims at three-pronged
investment: in callable bonds in industries with long-term growth potential,
in short-term maturities in cyclical industries, and in well-researched
special situations where positive credit characteristics could cause early
redemption. Currently, exposure to emerging markets is very low. No changes
in this strategy are anticipated at this time.
Our primary task _ to provide high current income from shorter-term,
lower-rated high yield securities _ will guide our portfolio management
decisions. We will continue to use intensive fundamental research in seeking
to provide high current income from good credits.
Very truly yours,
[Roger King signature logo]
Roger King
Portfolio Manager
July 29, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration 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 Class C shares.
**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 in the case of Class B, Class C and
Class R shares.
<TABLE>
<CAPTION>
Dreyfus Premier Limited Term High Income Fund
Statement of Investments June 30, 1997 (Unaudited)
Principal
Bonds and Notes_81.1% Amount Value
__________ __________
<S> <C> <C> <C>
Aircraft & Aerospace_2.1% Talley Manufacturing and Technology,
Sr. Notes, 103\4%, 2003.............. $ 500,000 $ 522,500
__________
Broadcasting_4.2% Azteca Holdings SA,
Sr. Notes, 11%, 2002................. 500,000 (a) 505,625
Pegasus Media & Communications,
Sr. Sub. Notes, Ser. B, 121\2%, 2005. 500,000 552,500
__________
1,058,125
__________
Cable Television_6.7% CCA Holdings,
Sr. Sub. Notes, Zero Coupon, 1999.... 932,840 (a) 617,500
EchoStar Satellite Broadcast,
Sr. Discount Notes, Zero Coupon, 2000 750,000 (b) 530,625
United International Holdings:
Sr. Discount Notes, Ser. B, Zero Coupon, 1999 600,000 466,500
Sr. Discount Notes, Zero Coupon, 1999 (Units) 100,000 (c) 77,750
__________
1,692,375
__________
Casinos_8.3% Griffin Gaming and Entertainment,
First Mortgage Notes, 9.27%, 2000.... 1,000,000 1,002,491
Majestic Star Casino, L.L.C.,
Sr. Notes, 123\4%, 2003.............. 1,000,000 1,105,000
__________
2,107,491
__________
Chemicals_2.0% Harris Chemical,
Sr. Sub. Notes, 103\4%, 2003......... 500,000 512,500
__________
Consumer_7.1% Coleman Escrow,
Secured First Priority Discount Notes,
Zero Coupon, 2001.................... 1,500,000 (a) 945,000
Revlon Worldwide,
Sr. Secured Discount Notes, Zero Coupon, 2001 1,250,000 (a) 853,125
__________
1,798,125
__________
Energy_1.5% Clark R & M Holdings,
Sr. Secured Notes, Ser. A, Zero Coupon, 2000 500,000 381,250
__________
Entertainment_2.2% Premier Parks,
Sr. Notes, Ser. A, 12%, 2003......... 500,000 557,500
__________
Financial_3.9% Cityscape Financial,
Sr. Notes, 123\4%, 2004.............. 500,000 (a) 495,000
Imperial Credit Capital Trust I,
Remarketed Par Securites, Ser. A, 101\4%, 2002 500,000 (a)... 495,253
__________
990,253
__________
Foods and Beverages_4.0% Envirodyne Industries,
Sr. Notes, 101\4%, 2001.............. 500,000 501,250
Dreyfus Premier Limited Term High Income Fund
Statement of Investments (continued) June 30, 1997 (Unaudited)
Principal
Bonds and Notes (continued) Amount Value
__________ __________
Foods and Beverages (continued) Texas Bottling Group,
Sr. Sub. Notes, 9%, 2003............. $ 500,000 $ 520,000
__________
1,021,250
__________
Foreign_1.9% Central Transport Rental Finance,
Secured Notes, 91\2%, 2003........... 500,000 482,500
__________
Homebuilding_2.1% Oriole Homes,
Sr. Notes, 121\2%, 2003.............. 500,000 525,000
__________
Industrial_6.0% Plastic Specialties & Technology,
Sr. Notes, 111\4%, 2003.............. 500,000 537,500
Republic Engineered Steels,
First Mortgage Notes, 97\8%, 2001.... 500,000 466,250
Vicap, S.A. de C.V.,
Gtd. Sr. Notes, 101\4%, 2002......... 500,000 (a) 516,875
__________
1,520,625
__________
Paper and Paper Related_ 8.1% Gaylord Container,
Sr. Sub. Discount Deb., 123\4%, 2005. 500,000 551,250
Repap Wisconsin,
Second Priority Sr. Secured Notes, 97\8%, 2006 500,000..... 507,500
Stone Container,
Sr. Notes, 97\8%, 2001............... 1,000,000 997,500
__________
2,056,250
__________
Real Estate_.1% Fisher Brothers Financial Realty Group,
Secured Notes, 103\4%, 2000.......... 37,000 37,648
__________
Retail_5.1% Ann Taylor,
Sub. Notes, 83\4%, 2000.............. 500,000 506,875
Duane Reade Holding,
Sub. Notes, Zero Coupon, 1999........ 1,000,000 (d) 782,500
__________
1,289,375
__________
Steel_.8% EES Coke Battery,
Sr. Secured Notes, Ser. B, 9.382%, 2007 200,000 (a) 205,000
__________
Supermarkets_4.0% Fleming Cos.,
Sr. Floating Rate Notes, 81\8%, 2001. 500,000 (e) 502,500
Shoppers Food Warehouse,
Sr. Notes, 93\4%, 2004............... 500,000 (a) 500,625
__________
1,003,125
__________
Telecommunications_2.6% Nextel Communications,
Sr. Discount Notes, Zero Coupon, 1998 750,000 (f) 656,250
__________
Textiles_6.5% Sassco Fashion,
Notes, 123\4%, 2004.................. 1,000,000 (g) 1,050,000
Dreyfus Premier Limited Term High Income Fund
Statement of Investments (continued) June 30, 1997 (Unaudited)
Principal
Bonds and Notes (continued) Amount Value
__________ __________
Textiles (continued) Willcox & Gibbs,
Sr. Notes, Ser. B, 121\4%, 2003...... $ 600,000 (a) $ 612,750
__________
1,662,750
__________
Transportation_1.9% ValuJet,
Sr. Notes, 101\4%, 2001.............. 500,000 472,500
__________
TOTAL BONDS AND NOTES
(cost $20,577,532)................... $20,552,392
============
Convertible Bonds and Notes_7.4%
Foreign_2.0% Scandinavian Broadcasting,
Sub. Deb., 71\4%, 2005............... $ 500,000 $ 502,500
__________
Restaurants_3.4% Boston Chicken,
Liquid Yield Option Notes, Zero Coupon, 2015 4,000,000 (h) 875,000
__________
Technology_2.0% Unisys,
Sub. Notes, 81\4%, 2000.............. 500,000 511,250
__________
Total Convertible Bonds and Notes
(cost $1,893,047).................... $ 1,888,750
============
Short-Term Investments_3.6%
U.S. Government Agency; Federal Home Loan Banks,
6%, 7/1/1997
(cost $920,000)...................... $.....920,000 $ 920,000
============
TOTAL INVESTMENTS (cost $23,390,579)........................................ 92.1% $23,361,142
======= ============
CASH AND RECEIVABLES (NET).................................................. 7.9% $ 1,994,528
======= ============
NET ASSETS.................................................................. 100.0% $25,355,670
======= ============
Notes to Statement of Investments:
(a) Securities 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, 1997, these securities amounted to $5,746,753 or 22.7% of net
assets.
(b) Zero coupon until 3/15/2000, date on which a stated coupon rate of
13 1/8% becomes effective; the stated maturity date is 3/15/2004.
(c) With warrants to purchase Common Stock.
(d) Zero coupon until 9/15/1999, date on which a stated coupon rate of
15% becomes effective; the stated maturity date is 9/15/2004.
(e) Variable rate security_interest rate subject to periodic change.
(f) Zero coupon until 9/1/1998, date on which a stated coupon rate of 11
1/2% becomes effective; the stated maturity date is 9/1/2003.
(g) Purchased on a forward commitment basis.
(h) Security can be put at holders' option on various dates.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Premier Limited Term High Income Fund
Statement of Assets and Liabilities June 30, 1997 (Unaudited)
Cost Value
_____________ ____________
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $23,390,579 $23,361,142
Cash....................................... 4,042,102
Receivable for shares of Beneficial Interest subscribed 2,979,988
Interest receivable........................ 322,407
___________
30,705,639
___________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 12,577
Due to Distributor......................... 2,462
Payable for investment securities purchased 5,329,846
Payable for shares of Beneficial Interest redeemed 5,084
___________
5,349,969
___________
NET ASSETS.................................................................. $25,355,670
===========
REPRESENTED BY: Paid-in capital............................ $25,385,107
Accumulated net unrealized appreciation (depreciation)
....................... on investments_Note 3 (29,437)
___________
NET ASSETS.................................................................. $25,355,670
===========
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
_______________________________
Class A Class B Class C Class R
_____________ _____________ _____________ _____________
<S> <C> <C> <C> <C>
Net Assets................................ $11,507,729 $8,856,446 $4,487,556 $503,939
Shares Outstanding......................... 919,840 708,062 358,713 40,281
NET ASSET VALUE PER SHARE.................. $12.51 $12.51 $12.51 $12.51
======= ======= ======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Premier Limited Term High Income Fund
Statement of Operations
from May 30, 1997 (commencement of operations) to June 30, 1997 (Unaudited)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income............................ $112,420
EXPENSES: Management fee_Note 2(a)................... $9,942
Distribution and service fees_Note 2(b).... 5,700
__________
Total Expenses......................... 15,642
___________
INVESTMENT INCOME_NET....................................................... 96,778
NET UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 3............................ (29,437)
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 67,341
===========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Premier Limited Term High Income Fund
Statement of Changes in Net Assets
from May 30, 1997 (commencement of operations) to June 30, 1997 (Unaudited)
OPERATIONS:
<S> <C>
Investment income_net................................................................... $ 96,778
Net unrealized appreciation (depreciation) on investments............................... (29,437)
__________
Net Increase (Decrease) in Net Assets Resulting from Operations..................... 67,341
__________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Class A shares........................................................................ (66,912)
Class B shares........................................................................ (16,201)
Class C shares........................................................................ (10,084)
Class R shares........................................................................ (3,581)
__________
Total Dividends..................................................................... (96,778)
__________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................................ 11,449,638
Class B shares........................................................................ 8,870,226
Class C shares........................................................................ 4,490,273
Class R shares........................................................................ 500,000
Dividends reinvested:
Class A shares........................................................................ 63,143
Class B shares........................................................................ 6,805
Class C shares........................................................................ 6,605
Class R shares........................................................................ 3,514
Cost of shares redeemed:
Class A shares........................................................................ (5,084)
Class B shares........................................................................ (13)
__________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions............. 25,385,107
__________
Total Increase (Decrease) in Net Assets........................................... 25,355,670
NET ASSETS:
Beginning of Period..................................................................... ___
__________
End of Period........................................................................... $25,355,670
=============
SEE NOTES TO FINANCIAL STATEMENTS.
Dreyfus Premier Limited Term High Income Fund
Statement of Changes in Net Assets (continued)
from May 30, 1997 (commencement of operations) to June 30, 1997 (Unaudited)
SHARES
__________
CAPITAL SHARE TRANSACTIONS:
Class A
____
Shares sold........................................................................... 915,199
Shares issued for dividends reinvested................................................ 5,047
Shares redeemed....................................................................... (406)
__________
Net Increase (Decrease) in Shares Outstanding............ 919,840
__________
__________
Class B
_______
Shares sold........................................................................... 707,519
Shares issued for dividends reinvested................................................ 544
Shares redeemed....................................................................... (1)
__________
Net Increase (Decrease) in Shares Outstanding............ 708,062
============
Class C
_______
Shares sold........................................................................... 358,185
Shares issued for dividends reinvested................................................ 528
__________
Net Increase (Decrease) in Shares Outstanding............ 358,713
============
Class R
_______
Shares sold........................................................................... 40,000
Shares issued for dividends reinvested................................................ 281
__________
Net Increase (Decrease) in Shares Outstanding............ 40,281
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Premier Limited Term High Income Fund
Financial Highlights (Unaudited)
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 the period from May 30, 1997
(commencement of operations) to June 30, 1997. This information has been
derived from the Fund's financial statements.
Class A Class B Class C Class R
PER SHARE DATA: Shares Shares Shares Shares
_______ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of period............ $12.50 $12.50 $12.50 $12.50
_______ _______ _______ _______
Investment Operations:
Investment income_net......................... .09 .08 .08 .09
Net realized and unrealized gain (loss)
on investments............................... .01 .01 .01 .01
_______ _______ _______ _______
Total from Investment Operations............. .10 .09 .09 .10
_______ _______ _______ _______
Distributions:
Dividends from investment income_net............. (.09) (.08) (.08) (.09)
_______ _______ _______ _______
Net asset value, end of period............ $12.51 $12.51 $12.51 $12.51
======= ======= ======= ========
TOTAL INVESTMENT RETURN*........................... 8.78% 8.33% 8.10% 9.13%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets*.......... 1.02% 1.44% 1.71% .78%
Ratio of net investment income
to average net assets*........................ 7.77% 6.14% 6.43% 8.15%
Portfolio Turnover Rate................... __ __ __ __
Net Assets, end of period (000's Omitted)........ $11,508 $8,856 $4,488 $504
*Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
Dreyfus Premier Limited Term High Income Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Limited Term High Income Fund (the "Fund") is a series of
The Dreyfus/Laurel Funds Trust (the "Trust") which 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 three
series including the Fund. The Fund's investment objective is to provide high
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") is the distributor
of the Fund's shares. The Fund is authorized to issue an unlimited number of
shares of Beneficial Interest in the following classes of shares: Class A,
Class B, Class C and Class R. 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 and bear a distribution fee, while Class B and Class C shares
are subject to a contingent deferred sales charge ("CDSC") and distribution
and service fees. 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 or service fees. 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 and service 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.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (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 recognized on the ex-dividend date and 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, if any, it is the policy of the Fund not to
distribute such gain.
Dreyfus Premier Limited Term High Income Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(D) FEDERAL INCOME TAXES: It is the policy of the Fund 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_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, commitment fees,
Rule 12b-1 distribution fees and expenses, service fees, 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). Each trustee 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. The
Chairman of the Board receives an additional annual fee of $25,000 per year.
These fees pertain to the following funds: The Dreyfus/Laurel Funds, Inc.,
The Dreyfus/Laurel Tax-Free Municipal Funds, and The Dreyfus/Laurel Funds
Trust. These fees and expenses are allocated to each series based on net
assets. Amounts required to be paid by the Trust directly to the
non-interested Trustees, that would be applied to offset a portion of the
management fee payable to the Manager, are in fact paid directly by the
Manager to the non-interested Trustees.
(B) DISTRIBUTION AND SERVICE PLAN: The Fund has adopted a Distribution
Plan (the "Plan") pursuant to Rule 12b-1 under the 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% and
.75% of the value of the average daily net assets of Class B and Class C
shares, respectively. 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 distribution or service fee. During the period ended
June 30, 1997, the distribution fees for Class A, Class B and Class C shares
were $2,152, $1,319 and $1,177, respectively. During the period ended June
30, 1997, the service fees for Class B and Class C
Dreyfus Premier Limited Term High Income Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
shares were $660 and $392, 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.
NOTE 3_SECURITIES TRANSACTIONS:
The aggregate amount of purchases of investment securities, excluding
short-term securities, during the period ended June 30, 1997, amounted to
$22,438,518.
At June 30, 1997, accumulated net unrealized depreciation on investments
was $29,437, consisting of $82,883 gross unrealized appreciation and $112,320
gross unrealized depreciation.
At June 30, 1997, 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).
DREYFUS PREMIER LIMITED TERM
HIGH 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. 029/759SA976
Semi-Annual Report
Dreyfus Premier
Limited Term
High Income Fund
June 30, 1997
[Dreyfus lion2 hres logo]
Registration Mark
PREMIER MANAGED INCOME FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Premier
Managed Income Fund for its semi-annual reporting period ended June 30, 1997.
For this six-month period, the Fund provided the following total returns,
income dividends and distribution rates:
<TABLE>
<CAPTION>
Approximate Annualized
Total Return* Income Dividends Distribution Rate**
_______________ ________________ ______________________
<S> <C> <C> <C>
Class A 3.57% $0.355 6.36%
Class B 3.18% $0.315 5.90%
Class C 3.27% $0.314 5.89%
Class R 3.70% $0.368 6.91%
Lehman Brothers Aggregate
Bond Index*** 3.09%
</TABLE>
THE ECONOMY
Despite recent moderation in the rate of new job creation, the latest
reported unemployment rate (5% in June) was the lowest
since 1973. When the unemployment rate was last at that level, the inflation
rate was heading toward double-digit territory. Now, inflation is subdued;
the Consumer Price Index rose at an annual rate of just 1.4% for the
twelve-month period through May. Producer prices rose a minuscule 0.6% over
the same time. It has been unprecedented for the economy to have seven years
of expansion, low unemployment and low inflation at the same time.
Ever alert for signs of incipient inflation, the Federal Open Market
Committee, the policy-making arm of the Federal Reserve Board (the "Fed"),
has raised interest rates just once in more than two years. That hike came in
March 1997 when the Federal Funds rate was increased by one quarter of a
percentage point to 5.50%. (The Federal Funds rate is the rate of interest
that banks charge one another for overnight loans.) While there have been
some signs that wages are increasing (an area of particular concern to the
Fed), there have also been indications that the economy may be slowing from
its torrid first quarter pace when it surged at a 5.9% annual rate, the
biggest advance since the fourth quarter of 1987.
Indicating possible moderation in the rate of economic growth, retail
sales have been in decline all spring despite record levels of consumer
optimism about the economy. The latest report on retail sales through June
showed a decline at an annual rate of 5% over the previous three months. This
marked the first three-month decline since the fall of 1981. Yet, despite
their sluggish spending at checkout counters, consumers' confidence in the
economy continues to climb, heavily influenced by increased job security and
low inflation.
Throughout the seven-year economic expansion, the pattern of consumer
spending has been stop-and-go, alternating between spurts of spending and
retrenchment. The 5% decline for the three months through May was preceded by
a 15% advance over the previous three-month period. On the production side of
the economy, a survey of corporate buyers compiled by the National
Association of Purchasing Management reported that growth in factory activity
eased slightly during June. The much-observed supplier-delivery component of
the survey, a measure of how quickly orders are being satisfied and a
possible sign of production bottlenecks, also fell modestly. In further
evidence of a slowing economy during the second quarter, the Commerce
Department recently reported that factory orders fell in May.
Rising incomes, low unemployment and quiescent inflation have all
contributed to a feeling of confidence, as measured by the Conference Board's
Index of Consumer Sentiment, that has been unmatched for 28 years. Many
economists feel that the optimistic consumer sentiment indicators provide a
floor to economic growth and will spur consumer spending later in the year,
particularly if the unemployment rate remains low and job security worries
recede
further. We are mindful of the potent role that consumers play in the economy
_ their spending accounts for about two thirds of economic output. So we
remain alert to signs of any strain on productive capacity caused by
increases in consumer spending that might, in turn, lead to another
tightening in monetary policy by the Federal Reserve.
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
Over the past two quarters, U.S. fixed-income markets have posted modest
returns, as slight price declines have been offset by coupon income. On June
30, 1997, the yield on the benchmark 30-year Treasury bond was 6.79% compared
to 6.64% on December 31, 1996. Despite the modest change in yield from
point-to-point, the 30-year Treasury bond fluctuated much more widely
throughout the period, from a low of 6.53% in February to a high of 7.17% in
April. During the first quarter of this year, interest rates rose steadily in
response to reports indicating strong economic growth and related comments by
Federal Reserve officials suggesting that a tightening of monetary policy may
be forthcoming. Since the sole increase in the Federal Funds rate in March,
fixed-income markets have rallied modestly.
Over the first half of 1997, the Fund has continued to find value in
specific parts of the corporate and mortgage sectors. High yield issues have
performed particularly well against the backdrop of a growing economy and low
inflation. Among investment grade corporates, the Fund has favored financial
and non-cyclical industrial issues. Both areas have enjoyed strong relative
performance year-to-date. The mortgage sector, one of the best performing
fixed income sectors during the first six months of this year, was another
area emphasized in the portfolio. Slow prepayment speeds (the rate at which
underlying mortgage-holders prepay principal) because of the relative
stability of interest rates during the period resulted in a favorable
investment environment for these securities. Valuations in the corporate and
mortgage sectors have been at historically tight levels compared to Treasury
securities. Accordingly, security research in these sectors remains very
important. We will continue to focus heavily on research to support the
security selection process.
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 signature logo]
Arthur J. MacBride
Portfolio Manager
July 15, 1997
New York, New York
* Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares or the contingent deferred sales charge imposed on
redemptions in the case of Class B and Class C shares.
**Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the maximum
offering price per share at the end of the period in the case of Class A
shares or net asset value in the case of Class B, Class C and Class R shares.
*** SOURCE: LEHMAN BROTHERS _ The Lehman Brothers Aggregate Bond Index is
a widely accepted index of corporate, government and government agency debt
instruments.
<TABLE>
<CAPTION>
PREMIER MANAGED INCOME FUND
STATEMENT OF INVESTMENTS JUNE 30, 1997 (UNAUDITED)
Principal
Convertible Subordinated Debentures_.3% Amount Value
__________ __________
<S> <C> <C> <C>
Foreign; Rogers Communications,
2%, 2005
(cost $251,542)...................... $ 475,000 $ 260,656
=============
Bonds and Notes_98.3%
Aircraft & Aerospace_.7% BE Aerospace,
Sr. Sub. Notes, 9 7/8%, 2006......... $ 300,000 $ 318,000
K&F Industries,
Sr. Sub. Notes, 10 3/8%, 2004........ 320,000 339,200
__________
657,200
__________
Banking_6.7% BB&T,
Sub. Notes, 7 1/4%, 2007............. 730,000 733,077
Capital One Bank,
Medium-Term Bank Notes, 6.83%, 1999.. 375,000 376,440
Dao Heng Bank Ltd.,
Sub. Notes, 7 3/4%, 2007............. 340,000 (a) 340,655
First National Bank of Boston,
Sub. Notes, 7 3/8%, 2006............. 758,000 766,531
First Nationwide Holdings,
Sr. Sub. Notes, 10 5/8%, 2003........ 350,000 388,500
First Security,
Sr. Notes, 6 7/8%, 2006.............. 670,000 654,845
First Union Institutional Capital II,
Gtd. Capital Securities, 7.85%, 2027. 445,000 433,875
Fleet Financial Group,
Sub. Notes, 7 1/8%, 2006............. 720,000 717,438
Great Western Financial Trust II,
Gtd. Capital Securities, Ser. A, 8.206%, 2027 550,000 553,364
NationsBank Capital Trust IV,
8 1/4%, 2027......................... 308,000 315,922
Sanwa Business Credit,
Notes, 7 1/4%, 2001.................. 925,000 (a) 938,187
__________
6,218,834
__________
Broadcasting & Media_3.9% Century Communications,
Sr. Notes, 9 1/2%, 2000.............. 600,000 621,000
Chancellor Broadcasting,
Sr. Sub. Notes, 9 3/8%, 2004......... 400,000 412,000
Comcast Cellular,
Sr. Notes, 9 1/2%, 2007.............. 450,000 (a) 453,375
EchoStar Communications,
Sr. Secured Discount Notes,
Zero Coupon, 1999 (Units)............ 390,000 (b,c) 329,550
JCAC (Gtd. by Jacor Communications),
Sr. Sub. Notes, 10 1/8%, 2006........ 400,000 427,000
Jacor Communications,
Sr. Sub. Notes, 8 3/4%, 2007......... 250,000 (a) 248,750
PREMIER MANAGED INCOME FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ ___________
Broadcasting & Media (continued) LodgeNet Entertainment,
Sr. Notes, 10 1/4%, 2006............. $.....300,000 $ 307,500
News America Holdings,
Gtd. Sr. Notes, 7 1/2%, 2000......... 470,000 479,361
Paramount Communications,
Sr. Notes, 5 7/8%, 2000.............. 300,000 291,309
Tele-Communications,
Medium-Term Notes, 7.13%, 1998....... 100,000 100,561
__________
3,670,406
__________
Building &
Construction_.5% American Standard,
Sr. Notes, 10 7/8%, 1999............. 200,000 214,500
Building Materials Corp. of America,
Sr. Notes, 8 5/8%, 2006.............. 280,000 285,600
__________
500,100
__________
Consumer_7.1% DynCorp,
Sr. Sub. Notes, 9 1/2%, 2007......... 520,000 (a) 525,200
E&S Holdngs,
Sr. Sub. Notes, 10 3/8%, 2006........ 400,000 419,000
Federated Department Stores,
Sr. Notes, 8 1/8%, 2002.............. 125,000 130,668
Hilton Hotels,
Sr. Notes, 7 3/8%, 2002.............. 152,000 152,993
International Semi-Tech Microelectronics,
Sr. Secured Discount Notes, Zero Coupon, 2000 450,000 (d) 267,750
KinderCare Learning Centers,
Sr. Sub. Notes, 9 1/2%, 2009......... 350,000 343,000
Loewen Group International,
Gtd. Sr. Notes, Ser. 3, 7 3/4%, 2001. 250,000 255,779
Loomis, Fargo & Co.,
Sr. Sub. Notes, 10%, 2004............ 500,000 (a) 507,500
Muzak L.P./Capital,
Sr. Notes, 10%, 2003................. 400,000 420,000
Prime Succession Acquisition,
Sr. Sub. Notes, 10 3/4%, 2004........ 130,000 142,350
Protection One Alarm Monitoring,
Sr. Sub. Discount Notes, Zero Coupon, 1998 550,000 (e) 566,500
Reliant Building Products,
Sr. Sub. Notes, 10 7/8%, 2004........ 570,000 (a) 587,100
Revlon Consumer Products,
Sr. Notes, 9 1/2%, 1999.............. 185,000 192,631
Revlon Worldwide,
Sr. Secured Discount Notes, Zero Coupon, 2001 730,000 (a) 498,225
Safeway,
Sr. Sub. Deb., 9.65%, 2004........... 150,000 168,887
PREMIER MANAGED INCOME FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ ___________
Consumer (continued) Sears Roebuck Acceptance,
Medium-Term Notes:
Ser. I, 5.60%, 1998 $.....535,000 $ 530,669
Ser. I, 5.71%, 2001 305,000 295,163
Ser. II, 6.69%, 2001 625,000 623,320
__________
6,626,735
__________
Energy_2.1% Chesapeake Energy,
Sr. Notes, 7 7/8%, 2004.............. 425,000 397,375
Coastal,
Sr. Notes, 8 1/8%, 2002.............. 420,000 442,640
Gulf Canada Resources Ltd.,
Sr. Sub. Deb., 9 5/8%, 2005.......... 400,000 432,500
HS Resources,
Sr. Sub. Notes, 9 1/4%, 2006......... 205,000 208,075
Noble Drilling,
Sr. Notes, 9 1/8%, 2006.............. 98,000 107,555
NorAm Energy,
Notes, 7 1/2%, 2000.................. 100,000 102,277
Norcen Energy Resources Ltd.,
Deb., 7 3/8%, 2006................... 165,000 166,097
Oryx Energy,
Notes, 10%, 2001..................... 80,000 87,815
__________
1,944,334
__________
Entertainment_.7% AMC Entertainment,
Sr. Sub. Notes, 9 1/2%, 2009......... 290,000 (a) 297,250
KSL Recreation Group,
Sr. Sub. Notes, 10 1/4%, 2007........ 300,000 (a) 316,500
__________
613,750
__________
Finance_9.3% Aetna/Travelers Life and Casualty,
Notes, 6 3/4%, 2001.................. 380,000 379,567
Dollar Financial Group,
Sr. Notes, 10 7/8%, 2006............. 300,000 322,500
GMAC,
Notes, 6 7/8%, 2001,................. 780,000 783,547
H.F. Ahmanson & Co.,
Medium-Term Notes, Ser. A, 7.65%, 2000 630,000 645,727
Household Finance,
Medium-Term Notes, 6.58%, 1999....... 510,000 511,675
Jefferson-Pilot Capital Trust A,
Gtd. Capital Securities, 8.14%, 2046. 385,000 (a) 382,678
Jefferson-Pilot Capital Trust B,
Gtd. Capital Securities, Ser. B, 8.285%, 2046 190,000 (a) 190,000
Lehman Brothers,
Sr. Sub. Notes, 6 1/8%, 2001......... 400,000 390,482
PREMIER MANAGED INCOME FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ ___________
Finance (continued) Lincoln National,
Deb., 7 1/4%, 2005................... $.....770,000 $ 776,191
McDonnell Douglas Financial Services,
Medium-Term Notes, Ser. B, 6.53%, 1998 245,000 (a) 245,543
Paine Webber Group:
Medium-Term Sr. Notes, Ser. C:
7.81%, 2017 435,000 430,095
8.06%, 2017 730,000 740,551
Notes, 7 5/8%, 2008.................. 135,000 136,811
Smith Barney Holdings,
Notes, 7 1/8%, 2006.................. 325,000 323,430
Sun Hung Kai Properties Finance Cayman Ltd.,
Gtd. Bonds, 5 5/8%, 1998............. 585,000 576,985
Sun Life of Canada (U.S.) Capital Trust I,
Gtd. Cum. Capital Securities, 8.526%, 2049 1,265,000 (a) 1,311,205
Zurich Capital Trust I,
Gtd. Capital Securities, 8.376%, 2037. 490,000 (a) 507,731
__________
8,654,718
__________
Finance/
Asset-Backed_9.2% Access Financial Manufactured Housing Contract Trust,
Sr. Pass-Through Ctfs.,
Ser. 1995-1, Cl. A-2, 6 3/8%, 2021... 750,000 742,680
Asset Securitization,
Commercial Mortgage Pass-Through Ctfs.:
Ser. 1996-MD VI, Cl. A-1C, 7.04%, 2026 780,000 780,366
Ser. 1997-D IV, Cl. A-1D, 7.49%, 2029 693,000 713,032
Capita Equipment Receivables Trust,
Receivable-Backed Notes,
Ser. 1996-1, Cl. A-3, 6.11%, 1999.... 663,000 664,591
Centrex Auto Trust,
Asset Backed Notes,
Ser. 1996-B, Cl. A, 6.15%, 2004...... 481,901 (a) 480,170
EQCC Home Equity Loan Trust,
Asset Backed Ctfs.:
Ser. 1993-3, 5.15%, 2008 550,969 527,388
Ser. 1996-1, Cl. A-2, 5.82%, 2009 627,000 620,410
Fleetwood Credit 1997-A Grantor Trust,
Asset Backed Ctfs., Cl. A, 6.64%, 2012 377,170 378,114
Green Tree HIL/HE Loan Trust,
Home Equity Pass-Through Ctfs.,
Ser. 1997-C, Cl. HE-A2, 6.38%, 2028.. 527,000 526,262
Morgan Stanley Capital I,
Asset Backed Ctfs.,
Ser. 1997-C1, Cl. A1C, 7.63%, 2020... 399,000 412,840
PREMIER MANAGED INCOME FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ ___________
Finance/
Asset-Backed (continued) TMS Home Equity Trust,
Asset Backed Ctfs.:
Ser. 1994-B, Cl. A-4, 7.60%, 2021 $...359,000 $ 365,110
Ser. 1994-C, Cl. A-4, 7.80%, 2021 245,000 250,517
Ser. 1996-C, Cl. A-6, 7.69%, 2024 637,000 639,190
Ser. 1997-A, Cl. A-4, 6.89%,2016 236,000 236,557
World Omni 1997-A Automobile Lease
Securitization Trust,
Automobile Lease Asset Backed Ctfs.:
Cl. A-2, 6.75%, 2003 640,000 645,100
Cl. A-4, 6.90%, 2003 550,000 555,672
___________
8,537,999
___________
Foreign_10.3% ANZ Banking Group Ltd.,
Sub. Notes, 7.55%, 2006.............. 430,000 441,966
Aegon N.V.,
Sub. Notes, 8%, 2006................. 972,000 1,028,761
BHP Finance (USA) Ltd.
(Gtd. by Broken Hill Proprietary Ltd.):
Notes, 7 7/8%, 2002 515,000 539,669
Notes, 6.69%, 2006 967,000 941,631
China International Trust and Investment,
Bonds, 6 7/8%, 2003.................. 1,000,000 955,810
Hanson Overseas B.V.,
Gtd. Sr. Notes, 6 3/4%, 2005......... 939,000 916,997
Indah Kiat Finance Mauritius Ltd.,
Gtd. Sr. Notes, 10%, 2007............ 385,000 (a) 384,038
Malayan Banking Berhad,
Sub. Notes, 7 1/8%, 2005............. 160,000 158,434
Midland Bank plc,
Sub. Notes, 7 5/8%, 2006............. 924,000 955,270
P.T. Polytama Propindo,
Gtd. Secured Notes, 11 1/4%, 2007.... 700,000 726,250
Petroliam Nasional Berhad,
Bonds, 7 5/8%, 2026.................. 890,000 (a) 893,486
Province De Quebec,
Deb., Ser. NN, 7 1/8%, 2024.......... 610,000 575,608
Republic of Colombia,
Bonds, 7 5/8%, 2007.................. 375,000 365,883
Republic of Indonesia,
Bonds, 7 3/4%, 2006.................. 455,000 461,157
Wharf Capital International Ltd.,
Gtd. Notes, 8 7/8%, 2004............. 230,000 247,540
___________
9,592,500
___________
PREMIER MANAGED INCOME FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
__________ __________
Hospital Related_.7% Tenet Healthcare,
Sr. Notes, 9 5/8%, 2002.............. $.....620,000 $ 669,600
___________
Industrial_6.7% ADT Operations,
Gtd. Sr. Notes, 8 1/4%, 2000......... 100,000 103,644
Allied Waste Industries,
Sr. Discount Notes, Zero Coupon, 2002. 410,000 (a,f) 258,300
ConAgra,
Sr. Notes, 7 1/8%, 2006.............. 454,000 (g) 461,138
Ford Motor,
Deb., 7.40%, 2046.................... 210,000 204,844
Lear Seating,
Sub. Notes, 8 1/4%, 2002............. 485,000 489,244
Lockheed Martin:
Gtd. Deb., 7 3/4%, 2026.............. 930,000 955,090
Gtd. Notes, 7 1/4%, 2006............. 405,000 410,318
Neenah,
Sr. Sub. Notes, 11 1/8%, 2007........ 440,000 (a) 468,600
Pioneer,
Sr. Secured Notes, 9 1/4%, 2007...... 230,000 (a) 227,700
Plastic Containers,
Sr. Secured Notes, 10%, 2006......... 325,000 341,250
Rayovac,
Sr. Sub. Notes, 10 1/4%, 2006........ 300,000 315,000
Speedy Muffler King,
Sr. Notes, 10 7/8%, 2006............. 480,000 487,200
Tracor,
Sr. Sub. Notes, 8 1/2%, 2007......... 300,000 303,750
USG,
Sr. Notes, Ser. B, 9 1/4%, 2001...... 400,000 423,664
Valassis Inserts,
Sr. Sub. Notes, 9 3/8%, 1999......... 440,000 454,554
Waste Management,
Step-Up Notes, 7.70%, 2002........... 360,000 373,736
__________
6,278,032
__________
Metals_.8% Kaiser Aluminum & Chemical,
Sr. Notes, 10 7/8%, 2006............. 350,000 377,563
U.S. Can,
Sr. Sub. Notes, 10 1/8%, 2006........ 350,000 375,375
__________
752,938
__________
Mortgage Backed_.8% First Union-Lehman Brothers Commercial Mortgage
Trust, Pass-Through Ctfs.,
Ser. 1997-C1, Cl. IO, 1.307%, 4/18/2027
(Interest Only Obligation)........... (h) 712,523
__________
PREMIER MANAGED INCOME FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
___________ ___________
Paper_.5% Fort Howard,
Sr. Notes, 9 1/4%, 2001.............. $.....400,000 $ 428,000
__________
Railroad_1.2% Burlington Northern Railroad Trust,
Pass Through Ctfs., Ser. 1996-B, 6.96%, 2009 429,988 426,548
Union Pacific,
Notes, 6.70%, 2006................... 715,000 696,635
__________
1,123,183
__________
Textiles_.4% Dominion Textile (USA),
Gtd. Sr. Notes, 8 7/8%, 2003......... 400,000 412,000
__________
Technology_2.6% Amphenol,
Sr. Sub. Notes, 9 7/8%, 2007......... 330,000 342,375
Iron Mountain,
Sr. Sub. Notes, 10 1/8%, 2006........ 600,000 642,000
McLeod,
Sr. Discount Notes, Zero Coupon, 2002. 700,000 (a,i) 449,750
Orion Network Systems,
Sr. Notes, 11 1/4%, 2007 (Units)..... 550,000 (c) 577,500
Pierce Leahy,
Sr. Sub. Notes, 9 1/8%, 2007......... 400,000 400,000
__________
2,411,625
__________
Utilities_1.5% El Paso Electric,
First Mortgage Bonds, Ser. A, 7 1/4%, 1999 740,000 745,550
Ferrellgas Partners Finance/Partners, L.P.,
Sr. Secured Notes, 9 3/8%, 2006...... 485,000 503,188
Ohio Edison,
First Mortgage Bonds, 8 3/4%, 1998... 110,000 111,547
__________
1,360,285
__________
U.S. Government
Agencies_30.1% Federal Home Loan Mortgage Corp.:
7 1/2%, 6/1/2007..................... 2,321,000 (j) 2,327,522
9 1/2%, 7/25/2022.................... 700,098 750,632
Federal National Mortgage Association:
6%, 3/1/2004-8/1/2010................ 1,689,441 1,640,357
6 1/2%, 11/1/2003.................... 587,378 588,471
7%, 7/1/2003-7/1/2023................ 2,290,270 2,280,857
7 1/2%, 4/1/2005-10/1/2011........... 3,033,758 3,086,580
7.536%, 6/1/2016..................... 958,551 975,019
8%, 10/1/2010-9/1/2026............... 5,610,395 (k) 5,743,786
8 1/2%, 6/1/2027..................... 1,000,000 (j) 1,036,560
9%, 6/1/2026......................... 285,602 301,667
PREMIER MANAGED INCOME FUND
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1997 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
__________ __________
U.S. Government
Agencies (continued) Federal National Mortgage Association (continued):
Multifamily REMIC Trust,
Gtd. REMIC Pass-Through Ctfs.,
Ser. 1996-M7, Cl. B, 6.856%, 6/17/2011 $.....320,000 (l) $ 316,900
REMIC Trust, Pass-Through Ctfs.
(Collateralized by FNMA Pass-Through Ctfs.),
(Interest Only Obligation):
Ser. 1995-MI, Cl. E, 2.520%, 7/25/2010 (m) (l) 114,832
Ser. 1995-MI, Cl. G, 2.330%, 7/25/2010 (n) (l) 62,035
Ser. 1995-MI, Cl. H, 2.205%, 7/25/2010 (o) (l) 309,925
Government National Mortgage Association I:
7%, 12/15/2023....................... 1,734,630 1,711,855
7 1/2%, 12/15/2023................... 1,842,008 1,856,395
8 1/2%, 12/15/2021................... 903,254 942,772
9%, 12/15/2021....................... 3,745,469 3,981,289
__________
28,027,454
__________
U.S. Government_2.5% U.S. Treasury Bonds,
7 1/4%, 8/15/2022.................... 426,000 445,303
U.S. Treasury Notes:
5 7/8%, 11/15/1999................... 1,113,000 1,106,391
6 3/8%, 8/15/2002.................... 200,000 200,094
6 1/2%, 10/15/2006................... 621,000 619,059
__________
2,370,847
__________
TOTAL BONDS AND NOTES
(cost $90,737,370)................... $91,563,063
=============
Short-Term Investments_7.1%
Commercial Paper; Ford Motor Credit,
6%, 7/1/1997
(cost $6,677,000).................... $..6,677,000 $ 6,677,000
=============
TOTAL INVESTMENTS (cost $97,665,912)........................................ 105.7% $98,500,719
======== =============
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (5.7%) $ (5,328,617)
======== =============
NET ASSETS.................................................................. 100.0% $93,172,102
======== =============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MANAGED INCOME FUND
Notes to Statements of Investments:
(a) Securities 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, 1997,
these securities amounted to $10,511,943 or 11.3% of net assets.
(b) Zero Coupon until 6/1/1999, date on which a stated coupon rate of 127\8
% becomes effective; the stated maturity date is 6/1/2004.
(c) With warrants to purchase common stock.
(d) 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.
(e) Zero Coupon until 6/30/1998, date on which a stated coupon rate of 135\8%
becomes effective; the stated maturity date is 6/30/2005.
(f) Zero Coupon until 6/1/2002, date on which a stated coupon rate of 11.30%
becomes effective; the stated maturity date is 6/1/2007.
(g) Reflects date security can be redeemed at holder's option; the stated
maturity is 10/1/2026.
(h) Notional face $9,030,000.
(i) Zero Coupon until 3/1/2002, date on which a stated coupon rate of 101\2%
becomes effective; the stated maturity date is 3/1/2007.
(j) Purchased on a forward commitment basis.
(k) Partially purchased on a forward commitment basis.
(l) Variable rate security-interest rate subject to periodic change.
(m) Notional face $1,531,096.
(n) Notional face $653,000.
(o) Notional face $2,530,000.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MANAGED INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1997 (UNAUDITED)
Cost Value
____________ ____________
ASSETS: Investments in securities_See Statement of Investments $ 97,665,912 $ 98,500,719
Cash....................................... 1,494,531
Interest receivable........................ 1,234,902
Receivable for investment securities sold.. 522,196
Receivable for shares of Beneficial Interest subscribed 10,000
______________
101,762,348
______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 71,229
Due to Distributor......................... 3,199
Payable for investment securities purchased 8,342,184
Payable for shares of Beneficial Interest redeemed 173,634
______________
8,590,246
______________
NET ASSETS.................................................................. $ 93,172,102
===============
REPRESENTED BY: Paid-in capital............................ $100,389,490
Accumulated net realized gain (loss) on investments (8,052,195)
Accumulated net unrealized appreciation (depreciation)
....................... on investments_Note 3 834,807
______________
NET ASSETS.................................................................. $ 93,172,102
===============
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
___________________________
Class A Class B Class C Class R
____________ __________ __________ ____________
<S> <C> <C> <C> <C>
________
Net Assets................................. $73,396,629 $6,050,300 $700,690 $13,024,483
Shares Outstanding......................... 6,824,697 562,577 65,128 1,211,244
NET ASSET VALUE PER SHARE.................. $10.75 $10.75 $10.76 $10.75
====== ====== ======= ========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MANAGED INCOME FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Interest................................... $3,540,217
Cash Dividends............................. 11,261
____________
Total Income......................... $3,551,478
EXPENSES: Management fee_Note 2(a)................... 324,665
Distribution and service fees_Note 2(b).... 122,345
Loan commitment fees_Note 4................ 802
____________
Total Expenses....................... 447,812
____________
INVESTMENT INCOME_NET....................................................... 3,103,666
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 3:
Net realized gain (loss) on investments.... $ 201,783
Net unrealized appreciation (depreciation) on investments 13,031
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 214,814
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $3,318,480
=============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MANAGED INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
_________________ __________________
OPERATIONS:
Investment income_net................................................ $ 3,103,666 $ 6,146,602
Net realized gain (loss) on investments.................................. 201,783 (576,926)
Net unrealized appreciation (depreciation) on investments................ 13,031 (2,599,839)
_________________ __________________
Net Increase (Decrease) in Net Assets Resulting from Operations...... 3,318,480 2,969,837
_________________ __________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Class A shares......................................................... (2,483,623) (5,098,797)
Class B shares......................................................... (157,478) (204,999)
Class C shares......................................................... (19,299) (9,243)
Class R shares......................................................... (443,266) (832,063)
_________________ __________________
Total Dividends...................................................... (3,103,666) (6,145,102)
_________________ __________________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares......................................................... 6,885,871 11,645,529
Class B shares......................................................... 1,696,682 3,058,864
Class C shares......................................................... 293,977 417,763
Class R shares......................................................... 1,831,731 5,288,706
Dividends reinvested:
Class A shares......................................................... 1,964,068 4,086,892
Class B shares......................................................... 68,215 94,447
Class C shares......................................................... 8,359 2,065
Class R shares......................................................... 400,503 747,833
Cost of shares redeemed:
Class A shares......................................................... (12,907,764) (16,479,953)
Class B shares......................................................... (708,431) (359,304)
Class C shares......................................................... (24,755) (65,122)
Class R shares......................................................... (1,816,390) (4,614,714)
_________________ __________________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (2,307,934) 3,823,006
_________________ __________________
Total Increase (Decrease) in Net Assets............................ (2,093,120) 647,741
NET ASSETS:
Beginning of Period...................................................... 95,265,222 94,617,481
_________________ __________________
End of Period........................................................... $ 93,172,102 $ 95,265,222
================ ===============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MANAGED INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
_______________________________________
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
_________________ __________________
CAPITAL SHARE TRANSACTIONS:
Class A
______
Shares sold............................................................ 642,827 1,074,433
Shares issued for dividends reinvested................................. 184,357 383,665
Shares redeemed........................................................ (1,208,826) (1,542,448)
_________________ __________________
Net Increase (Decrease) in Shares Outstanding (381,642) (84,350)
================= ================
Class B
______
Shares sold............................................................ 159,213 286,510
Shares issued for dividends reinvested................................. 6,400 8,877
Shares redeemed........................................................ (66,612) (33,651)
_________________ __________________
Net Increase (Decrease) in Shares Outstanding 99,001 261,736
================= ================
Class C
______
Shares sold............................................................ 27,532 39,075
Shares issued for dividends reinvested................................. 784 193
Shares redeemed........................................................ (2,343) (6,124)
_________________ __________________
Net Increase (Decrease) in Shares Outstanding 25,973 33,144
================= ================
Class R
______
Shares sold............................................................ 171,549 493,176
Shares issued for dividends reinvested................................. 37,594 70,200
Shares redeemed........................................................ (169,640) (432,290)
_________________ __________________
Net Increase (Decrease) in Shares Outstanding 39,503 131,086
================= ================
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MANAGED INCOME 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.
Class A Shares
_________________________________________________________________________
Six Months Ended
June 30, 1997 Year Ended December 31,
__________________________________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994(1,2) 1993(1,3) 1992(1)
____________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $10.73 $11.08 $10.12 $11.38 $11.45 $11.41
______ _______ _______ _______ _______ _______
Investment Operations:
Investment income_net................. .35 .69 .75 .69(4) .78(4) .87
Net realized and unrealized gain (loss)
on investments...................... .02 (.35) .96 (1.26) .83 .10
______ _______ _______ _______ _______ _______
Total from Investment Operations...... .37 .34 1.71 (.57) 1.61 .97
______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income_net.. (.35) (.69) (.75) (.69) (.75) (.87)
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................... (.35) (.69) (.75) (.69) (1.68) (.93)
______ _______ _______ _______ _______ _______
Net asset value, end of period........ $10.75 $10.73 $11.08 $10.12 $11.38 $11.45
====== ======= ======= ====== ====== ======
TOTAL INVESTMENT RETURN(5)................ 7.20%(6) 3.42% 17.32% (5.14%) 14.54% 8.77%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .95%(6) .95% .95% .98%(7) 1.14%(7) 1.02%
Ratio of net investment income
to average net assets............... 6.71%(6) 6.48% 7.08% 6.32% 6.55% 7.58%
Portfolio Turnover Rate............... 118.19%(8) 251.66% 236.10% 270.00% 333.00% 216.00%
Net Assets, end of period (000's Omitted) $73,397 $77,305 $80,782 $79,548 $58,052 $98,207
(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.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MANAGED INCOME FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.(1)
Class B Shares Class C Shares
________________________________ ______________________________________
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1997 December 31, June 30, 1997 December 31,
_______________ _________________
PER SHARE DATA: (Unaudited) 1996 1995 (Unaudited) 1996 1995
_________ ______ ______ ____________ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.73 $11.08 $10.12 $10.73 $11.08 $10.12
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income_net............ .31 .61 .67 .31 .61 .67
Net realized and unrealized gain (loss)
on investments................. .02 (.35) .96 .03 (.35) .96
______ ______ ______ ______ ______ ______
Total from Investment Operations. .33 .26 1.63 .34 .26 1.63
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income_net (.31) (.61) (.67) (.31) (.61) (.67)
______ ______ ______ ______ ______ ______
Net asset value, end of period... $10.75 $10.73 $11.08 $10.76 $10.73 $11.08
====== ======= ====== ======= ======= ======
TOTAL INVESTMENT RETURN(2)........... 6.41%(3) 2.54% 16.55% 6.59%(3) 2.49% 16.54%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.70%(3) 1.70% 1.69% 1.69%(3) 1.68% 1.66%
Ratio of net investment income
to average net assets.......... 5.94%(3) 5.77% 6.41% 5.92%(3) 5.69% 6.03%
Portfolio Turnover Rate.......... 118.19%(4) 251.66% 236.10% 118.19%(4) 251.66% 236.10%
Net Assets, end of period (000's Omitted) $6,050 $4,973 $2,236 $701 $420 $67
(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.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MANAGED INCOME FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.(1)
Class R Shares
____________________________________________________________________
Six Months Ended Period Ended
June 30, 1997 Year Ended December 31, December 31,
____________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994(1,2) 1993(1,3)
_______________ ______ ______ ________ ____________
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $10.73 $11.08 $10.12 $11.38 $11.62
________ ______ ______ ________ _________
Investment Operations:
Investment income_net................... .37 .72 .78 .72(4) .74(4)
Net realized and unrealized gain (loss)
on investments........................ .02 (.35) .96 (1.26) .67
________ ______ ______ ________ _________
Total from Investment Operations........ .39 .37 1.74 (.54) 1.41
________ ______ ______ ________ _________
Distributions:
Dividends from investment income_net.... (.37) (.72) (.78) (.72) (.71)
Dividends from net realized gain on investments __ __ __ __ (.61)
Dividends in excess of net realized gain
on investments........................ __ __ __ __ (.33)
________ ______ ______ ________ _________
Total Distributions..................... (.37) (.72) (.78) (.72) (1.65)
________ ______ ______ ________ _________
Net asset value, end of period.......... $10.75 $10.73 $11.08 $10.12 $11.38
======= ======= ====== ======= ========
TOTAL INVESTMENT RETURN(5).................. 7.46%(6) 3.58% 17.71% (4.88%) 12.59%(6)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets. .70%(6) .70% .70% .71%(7) .83%(6,7)
Ratio of net investment income
to average net assets................. 6.95%(6) 6.74% 7.31% 6.59% 6.86%(6)
Portfolio Turnover Rate................. 118.19%(8) 251.66% 236.10% 270.00% 333.00%(8)
Net Assets, end of period (000's Omitted) $13,024 $12,567 $11,532 $9,588 $1,338
(1) On February 1, 1993, the Fund commenced selling Investment Class shares.
Effective April 4, 1994 the Investment Class shares
were 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.
</TABLE>
DREYFUS PREMIER MANAGED INCOME FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Managed Income Fund (the "Fund") is a series of The
Dreyfus/Laurel Funds Trust (the "Trust") which 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 three
series including 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").
On January 31, 1997 the Fund's Trustees approved a change to the Fund's
name from "Premier Managed Income Fund" to "Dreyfus Premier Managed Income
Fund," which change became effective March 31, 1997.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue an unlimited number of
shares of Beneficial Interest in the following classes of shares: Class A,
Class B, Class C and Class R. 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 distribution and 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.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (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 and 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 are normally declared and
paid annually, but
DREYFUS PREMIER MANAGED INCOME FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 $8,217,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1996. The
carryover does not include net realized securities losses from November 1,
1996 through December 31, 1996 which are treated, for Federal income tax
purposes, as arising in fiscal 1997. If not applied, $6,470,000 of the
carryover expires in fiscal 2002, $540,000 expires in fiscal 2003 and
$1,207,000 expires in fiscal 2004.
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, commitment fees,
Rule 12b-1 distribution fees and expenses, service fees, 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). Each trustee 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. The
Chairman of the Board receives an additional annual fee of $25,000 per year.
These fees pertain to the following funds: The Dreyfus/Laurel Funds, Inc.,
The Dreyfus/Laurel Tax-Free Municipal Funds, and The Dreyfus/Laurel Funds
Trust. These fees and expenses are allocated to each series based on net
assets. Amounts required to be paid by the Trust directly to the
non-interested Trustees, that would be applied to offset a portion of the
management fee payable to the Manager, are in fact paid directly by the
Manager to the non-interested Trustees.
(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, 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 distribution or service fee. During the period ended June 30, 1997,
the distribution fees for Class A, Class B and Class C shares were $92,569,
$19,885 and $2,447, respectively. During the period ended June 30, 1997, the
service fees for Class B and Class C shares were $6,628 and $816,
respectively.
DREYFUS PREMIER MANAGED INCOME 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.
NOTE 3_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales (including paydowns) of
investment securities, excluding short-term securities, during the period
ended June 30, 1997 amounted to $109,080,170 and $112,681,099, respectively.
At June 30, 1997, accumulated net unrealized appreciation on investments
was $834,807, consisting of $1,183,250 gross unrealized appreciation and
$348,443 gross unrealized depreciation.
At June 30, 1997, 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).
NOTE 4_BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended June
30, 1997, the Fund did not borrow under the Facility.
DREYFUS 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. MIFSA976
Semi-Annual Report
Dreyfus Premier Managed Income
Fund
June 30, 1997
[Dreyfus lion2 hres logo]
Registration Mark
Registration Mark
