DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Premier Limited Term High
Income Fund for the six-month reporting period ended June 30, 1998 as shown in
the following table:
<TABLE>
<CAPTION>
Approximate Distribution Rate
Total Return* Income Dividends Per Share**
___________ _____________________ _________________
<S> <C> <C> <C>
Class A Shares 5.36% $0.569 8.73%
Class B Shares 5.09% $0.537 8.63%
Class C Shares 4.96% $0.521 8.37%
Class R Shares 5.49% $0.584 9.40%
Merrill Lynch High Yield
Master II Index*** 4.58%
</TABLE>
ECONOMIC REVIEW
In the first half of 1998, three main regions of the world had very different
economic fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board (the "Fed") to contemplate a rise in interest rates,
but the cooling of the U.S. economy over the course of the half-year resulted in
no action being taken. After many years of subpar economic growth, continental
Europe experienced a better economic expansion. Unlike the U.S., Europe has
substantial excess capacity of productive plant and labor. In Asia, weak
economies were pervasive in the aftermath of the Asian financial crisis late
last year.
A main influence on the U.S. economy in the first half of 1998 was Asian
economic weakness. It had both positive and negative effects. The positive
effects hit first. Actual inflation and expected inflation dropped, resulting in
a decline in long-term Treasury bond yields and mortgage rates. This produced a
boom in housing and rising asset prices, including bonds, stocks and houses. The
fall in inflation helped the consumer sector as more of the growth in consumer
income was left over after inflation to buy goods and services. Consumers
benefited from a combination of good growth in income after inflation, a strong
labor market and rising prices of assets they owned.
The negative effect of Asian weakness appeared in the industrial sector rather
than the consumer sector. By midyear, there was clear-cut evidence of industrial
weakness in a slowing of inventory accumulation and weakened exports. One result
of this industrial weakness was to cool off a U.S. economy that had been growing
so rapidly that there were fears that the Fed might raise interest rates. This
favorable shift in expectations about Fed policy was one reason for the rise in
U.S. bond and stock prices. Another background factor was the increasing
evidence of prospects for multi-year budget surpluses in the U.S.
MARKET ENVIRONMENT
The high yield market continues to enjoy solid support from the positive
economic environment, the general health of the domestic financial markets, and,
possibly most importantly, investor demand. Steady economic growth such as we
have been experiencing for several years creates an excellent business climate
for companies with leveraged balance sheets. The healthy debt and equity markets
provide liquidity, and a broad spectrum of investors continues to search for
yield in the high yield arena.
In the midst of this rosy state of the high yield market are two caution flags
that bear attention. The first is continued economic difficulties in Southeast
Asia, and what effect they might have on the worldwide economy. One fear is that
lower demand for goods and services in Asia combined with excess production
capacity built through the strong capital markets could result in worldwide
price deflation. This has not been realized yet, but it is one that high yield
investors need to watch. The second is that the strong total returns the high
yield market has enjoyed have resulted in record new issuance. Almost as many
new issues have come to market in the first half of 1998 as in all of 1997. This
glut caused a widening of spreads to Treasuries and hurt the performance of the
overall high yield market in the second quarter. The Merrill Lynch High Yield
Master II Index had a total return for the first half of 1998 of 4.58%, but only
1.56% for the second quarter. More importantly, the record new issuance has
placed a heavy burden on investors' research capacities as well as the
underwriters' due diligence function. The result will probably be that credit
surprises in the high yield market will be more on the negative side, and the
best place to find value should be in the secondary market.
The bottom line is that the positive trends that have benefited the high yield
market currently are continuing, but investors need to be aware of developments
in Asia and place a premium on research.
PORTFOLIO OVERVIEW
The Fund's portfolio of limited term high yield assets performed well through
the first half of 1998, even as the overall high yield market stumbled over a
glut of new issuance.
The Fund is restricted to maintaining an effective average maturity of four
years or less; at the end of the reporting period, it was less than three years.
This reflects the Fund's goal of high current income with less volatility than
comparable longer-term high yield funds. Because of this limited term maturity
restriction, we believe that the Fund should generally underperform in strong
high yield markets, while outperforming in weak ones. The returns of the Fund
for the first half of 1998, combined with the cash distributions, reflect this.
With about 120 issues, the Fund remains broadly diversified by individual
credit and industry sector. It currently focuses on certain sectors which could
be considered defensive against worldwide economic volatility, such as
telecommunications, cable, and entertainment. Emerging market exposure is low,
and no change in this policy is anticipated. Where investments in foreign
credits exist, they usually are in investment grade countries, such as Canada or
Germany, or in affiliates of major multinational investment grade companies,
such as Newscorp, Duke Power, or Bell Canada.
Given the cautionary flags raised over the high yield sector, we believe these
investment guidelines can serve the Fund well. We will continue to use intensive
credit research to acquire assets that meet these guidelines. Thank you for your
confidence in Dreyfus. We look forward to continuing to serve your financial
needs.
Sincerely,
[Roger King signature logo]
Roger King
Portfolio Manager
July 20, 1998
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 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 the net asset value per share in the case of Class B, Class C and Class R
shares.
***SOURCE: MERRILL LYNCH, PIERCE, FENNER AND SMITH, INC. The Merrill Lynch
High Yield Master II Index is a market capitalization weighted index including
all domestic and Yankee high yield bonds with at least $100 million par amount
outstanding and greater than or equal to one year to maturity. All dividends and
capital gain distributions are reinvested.
<TABLE>
<CAPTION>
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes--95.1% Amount Value
- ------------------------------------------------------- ____________ ______________
<S> <C> <C>
Aircraft & Aerospace--4.8% AM General,
Sr. Notes, 12.875%, 2002 $13,000,000 $ 13,877,500
American Pacific,
Sr. Notes, 9.25%, 2005 7,000,000 (a) 7,262,500
Burke Industries,
Sr. Notes, 9.6875%, 2007 7,000,000 (a,b) 7,122,500
Rocal, Ltd.,
Collateralized Global Medium-Term Notes
(Gtd. by Embraer-Empresa Brasileira de
Aeronautica, S.A.), 10.25%, 1998 4,328,000 (a) 4,317,180
Sequa,
Sr. Sub. Notes, 9.375%, 2003 1,500,000 1,567,500
_____________
34,147,180
_____________
Automotive--1.7% Envirotest Systems,
Gtd. Sr. Notes, 9.125%, 2001 5,100,000 5,176,500
Penda,
Sr. Notes, 10.75%, 2004 6,500,000 6,630,000
_____________
11,806,500
_____________
Banking--.3% Republic National Bank of New York,
Deb., 9.65%, 2003 2,000,000 (a) 1,849,200
_____________
Broadcasting--3.8% Azteca Holdings, S.A. de C.V.,
Sr. Secured Notes, 11%, 2002 7,500,000 7,556,250
Paxson Communications,
Sr. Sub. Notes, 11.625%, 2002 8,000,000 8,620,000
Scandinavian Broadcasting System SA,
Conv. Sub. Notes, 7%, 2004 4,700,000 (a) 5,616,500
Spanish Broadcasting,
Sr. Notes, 12.50%, 2002 3,000,000 3,405,000
Univision Network Holding, L.P.,
Sub. Notes, 7%, 2002 2,550,575 1,766,250
_____________
26,964,000
_____________
Cable Television--6.6% Busse Broadcasting,
Sr. Secured Notes, 11.625%, 2000 1,125,000 1,207,969
CCA Holdings,
Sr. Sub. Notes, Zero Coupon, 1999 9,328,404 7,650,001
Diamond Cable Communications, PLC,
Sr. Discount Notes, Zero Coupon, 2000 9,950,000 (c) 8,258,500
Digital Television Service/Capital,
Secured Sr. Sub. Notes, 12.50%, 2007 7,000,000 8,015,000
EchoStar Communications,
Sr. Discount Notes, Zero Coupon, 1999 2,000,000 (c) 1,820,000
EchoStar DBS,
Gtd. Notes, 12.50%, 2002 2,500,000 2,793,750
EchoStar Satellite Broadcast,
Gtd. Sr. Discount Notes, Zero Coupon, 2000 750,000 (c) 682,500
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
Cable Television (continued) Galaxy Telecom, L.P.,
Sr. Sub. Notes, 12.375%, 2005 $ 7,400,000 $ 8,269,500
Kabelmedia Holdings GMBH,
Sr. Discount Notes, Zero Coupon, 2001 6,000,000 (c) 4,590,000
Pegasus Media & Communications,
Sr. Sub. Notes, Ser. B, 12.50%, 2005 3,000,000 3,435,000
_____________
46,722,220
_____________
Casinos & Gaming--4.4% Casino Magic Finance,
First Mortgage, 11.50%, 2001 15,000,000 15,675,000
Hollywood Casino,
Sr. Notes, 12.75%, 2003 5,176,000 5,693,600
Majestic Star Casino, LLC,
Sr. Exchange Secured Notes, 12.75%, 2003 3,500,000 3,841,250
Station Casinos,
Sr. Sub. Notes, 9.625%, 2003 5,356,000 5,570,240
_____________
30,780,090
_____________
Chemicals--.3% ISP Holdings,
Sr. Notes, Ser. B, 9%, 2003 2,000,000 2,085,000
_____________
Commercial Mortgages--1.0% Nomura Depositor Trust ST IA,
Mortgage Pass-Through Ctfs., Ser. 1998 ST I:
Cl. B2, 9.906%, 2003 5,000,000 (a,b) 4,969,531
Cl. B2A, 9.906%, 2003 2,000,000 (a,b) 1,987,813
_____________
6,957,344
_____________
Construction--1.5% ICF Kaiser International,
Sr. Sub. Notes, 13%, 2003 9,550,000 10,457,250
_____________
Consumer--7.1% BPC Holding,
Sr. Secured Notes, 12.50%, 2006 2,750,000 3,025,000
Florist Transworld,
Sr. Sub. Notes, 14%, 2001 5,500,000 6,022,500
Graham Packaging/GPC Capital,
Floating Interest Rate Sub. Term Securities,
9.28%, 2008 1,500,000 (a,b) 1,507,500
Hosiery Corp. of America,
Sr. Sub. Exchange Notes, 13.75%, 2002 12,000,000 13,230,000
La Petite Holdings,
Deb., 12.125%, 2003 1,105,293 1,179,900
Revlon Worldwide,
Sr. Secured Discount Notes, Zero Coupon, 2001 19,750,000 15,405,000
Sharp Do Brasil S.A.,
Medium-Term Notes, 9.625%, 2000 3,500,000 (d) 3,097,500
Sweetheart Cup,
Gtd. Sr. Notes, 9.625%, 2000 7,000,000 6,965,000
_____________
50,432,400
_____________
Energy--4.2% Clark USA,
Sr. Secured Notes, Ser. B, 10.875%, 2005 5,386,000 5,884,205
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
Energy (continued) DeepTech International,
Sr. Secured Notes, 12%, 2000 $ 4,850,000 $ 5,153,125
Gerrity Oil & Gas,
Sr. Sub. Notes, 11.75%, 2004 2,960,000 3,233,800
Kelly Oil & Gas,
Conv. Sub. Notes, 7.875%, 1999 4,996,000 4,883,590
Rutherford-Moran Oil,
Sr. Sub. Notes, 10.75%, 2004 9,940,000 10,648,225
_____________
29,802,945
_____________
Entertainment--4.2% American Skiing,
Sr. Sub. Notes,12%, 2006 15,915,000 17,904,375
Premier Parks,
Gtd. Sr. Notes, Ser. A, 12%, 2003 1,500,000 1,672,500
Six Flags Theme Parks,
Sr. Sub. Notes, Ser. A, 121_4%, 2005 2,000,000 2,280,000
United Artists Theatres,
Floating Rate Sr. Sub. Notes, 10.063%, 2007 8,000,000 (a,b) 8,040,000
_____________
29,896,875
_____________
Financial/Asset-Backed--.6% Commercial Loan Funding Trust I,
Floating Rate Sub. Notes, Cl. D1, 18%, 2005
(Interest Only Obligation) 4,500,000 (b,e) 3,757,500
Imperial Credit Capital Trust I,
Remarketed Par Securities, Ser. A, 10.25%, 2002 500,000 (a) 510,507
_____________
4,268,007
_____________
Food and Beverages--4.1% Chiquita Brands International:
Conv. Sub. Notes, 7%, 2001 4,500,000 (a) 4,185,000
Conv. Sub. Notes, 7%, 2001 2,450,000 2,278,500
Envirodyne Industries:
Sr. Notes, 10.25%, 2001 14,000,000 14,140,000
Sr. Secured Notes, Ser. B, 12%, 2000 3,600,000 3,843,000
Pilgrims Pride,
Sr. Sub. Notes, 10.875%, 2003 2,000,000 2,090,000
RC/Arbys,
Gtd. Sr. Notes, 9.75%, 2000 2,485,000 2,566,657
_____________
29,103,157
_____________
Forest Products--4.2% Maxxam Group Holdings,
Sr. Secured Notes, 12%, 2003 9,200,000 10,304,000
Pacific Lumber,
Sr. Notes, 10.50%, 2003 18,760,000 19,369,700
_____________
29,673,700
_____________
Healthcare--.4% Eye Care Centers of America,
Floating Interest Rate Sub. Term Securities,
9.223%, 2008 3,000,000 (a,b) 3,015,000
_____________
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
Industrial--4.2% Anacomp,
Sr. Sub. Notes, Ser. C, 10.875%, 2004 $ 5,000,000 (a) $ 5,287,500
Applied Extrusion Technology,
Sr. Notes, Ser. B, 11.50%, 2002 7,880,000 8,352,800
HCC Industries,
Sr. Sub. Notes, 10.75%, 2007 7,110,000 7,572,150
Petro Stopping Centers/Financial,
Sr. Notes, 10.50%, 2007 7,800,000 8,307,000
Vicap, S.A. de C.V.,
Gtd. Sr. Notes, 10.25%, 2002 500,000 (a) 521,250
_____________
30,040,700
_____________
Metals--6.9% Doe Run Resources,
Sr. Sub. Notes, 12.009%, 2003 2,000,000 (a,b) 2,030,000
Kaiser Aluminum & Chemical,
Gtd. Sr. Notes, 9.875%, 2002 5,000,000 5,162,500
NS Group,
Sr. Notes, 13.50%, 2003 600,000 666,000
Northwestern Steel & Wire,
Sr. Notes, 9.50%, 2001 5,000,000 5,056,250
Renco Metals,
Sr. Notes, 11.50%, 2003 13,495,000 14,507,125
Republic Engineered Steels,
First Mortgage Notes, 9.875%, 2001 11,290,000 11,290,000
Russel Metals,
Sr. Notes, 10.25%, 2000 9,500,000 9,903,750
_____________
48,615,625
_____________
Paper & Paper Related--5.9% APP Global Finance III,
Secured Floating Rate Notes, 10.093%, 2002 4,000,000 (b) 2,720,000
Florida Coast Paper, LLC,
First Mortgage, Ser. B, 12.75%, 2003 13,000,000 14,527,500
Stone Container :
Sr. Notes, 9.875%, 2001 1,000,000 1,028,750
Sr. Sub. Deb., 12.25%, 2002 (Units) 10,925,000 (f) 11,252,750
Sr. Sub. Notes, 11%, 1999 500,000 512,500
Stone Container Finance,
Gtd. Sr. Notes, 11.50%, 2006 10,000,000 (a) 11,350,000
_____________
41,391,500
_____________
Publishing--1.9% American Media Operations,
Sr. Sub. Notes, 11.625%, 2004 7,350,000 7,956,375
Day International Group,
Sr. Notes, Ser. B, 11.125%, 2005 5,200,000 5,674,500
_____________
13,630,875
_____________
Retail--2.9% Cafeteria Operators, L.P.
(Gtd. by Furrs/Bishops Specialty Group),
Sr. Secured Notes, 12%, 2001 7,481,649 7,519,058
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
Retail (continued) Corporate Express,
Conv. Notes, 4.50%, 2000 $ 9,840,000 $ 9,102,000
Discovery Zone,
Sr. Secured Notes, 13.50%, 2002 4,000,000 3,640,000
_____________
20,261,058
_____________
Technology--3.9% LAM Research,
Conv. Sub. Notes, 5%, 2002 6,750,000 5,467,500
Samsung Electronics of America,
Gtd. Notes, 9.75%, 2003 3,000,000 (a) 2,820,000
The Learning Company,
Conv. Sr. Notes, 5.50%, 2000 10,565,000 (a) 10,155,606
Unisys,
Sr. Notes, 12%, 2003 2,750,000 3,114,375
Viasystems,
Sr. Sub. Notes, 9.75%, 2007 5,750,000 5,706,875
_____________
27,264,356
_____________
Telecommunications/
Carriers--4.2% Call-Net Enterprises,
Sr. Discount Notes, Zero Coupon, 1999 1,000,000 (c) 960,000
GST USA,
Sr. Discount Notes, Zero Coupon, 2000 2,500,000 (c) 2,037,500
Hermes Europe Railtel B.V.,
Sr. Notes, 11.50%, 2007 3,250,000 3,688,750
Intelcom Group (USA),
Gtd. Secured Discount Notes, Zero Coupon, 2001 1,770,000 (c) 1,389,450
Intermedia Communications,
Sr. Discount Notes, Zero Coupon, 2001 12,500,000 (c) 10,281,250
Level 3 Communications,
Sr. Sub. Notes, 10.375%, 2007 2,000,000 2,220,000
MJD Communications,
Floating Rate Notes, 10%, 2008 9,000,000 (a,b) 9,180,000
_____________
29,756,950
_____________
Textiles--1.3% Sassco Fashions,
Notes, 12.75%, 2004 4,200,000 4,557,000
Texfi Industries,
Sr. Sub. Deb, 8.75%, 1999 5,100,000 4,934,250
_____________
9,491,250
_____________
Transportation--3.4% Atlantic Coast Airlines,
Gtd. Pass Through Ctfs., Ser. 1997-1D, 7.97%, 2000 1,858,498 (a) 1,856,175
CHC Helicopter,
Sr. Sub. Notes, 11.50%, 2002 (Units) 1,925,000 (g) 2,069,375
Eletson Holdings,
First Preferred Ship Mortgage Notes, 9.25%, 2003 1,750,000 1,798,125
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
Transportation (continued) MTL,
Floating Interest Rate Sub. Term Securities,
10.50%, 2006 $ 3,000,000 (a,b) $3,007,500
Moran Transportation,
First Preferred Ship Mortgage Notes,
11.75%, 2004 5,835,000 6,447,675
Stena AB,
Sr. Notes, 10.50%, 2005 500,000 546,250
Union Pacific,
Sub. Deb., 5.50%, 2033 4,166,000 3,755,393
ValuJet,
Sr. Notes, 10.25%, 2001 5,025,000 4,886,812
_____________
24,367,305
_____________
Utilities--1.0% Hidroelectrica Alicura,
Deb., 8.375%, 1999 3,000,000 (a) 2,985,000
Hidroelectrica Piedra Aquila,
Medium-Term Notes, 10.625%, 2001 4,000,000 4,155,000
_____________
7,140,000
_____________
Wireless Communications--10.3% Cencall Communications,
Sr. Discount Notes, Zero Coupon, 1999 3,000,000 (c) 2,947,500
Clearnet Communications,
Sr. Discount Notes, Zero Coupon, 2000 7,500,000 (c) 6,318,750
Comunicacion Celular SA,
Bonds, Zero Coupon, 2000 1,750,000 (c) 1,356,250
Dial Call Communications,
Sr. Discount Notes, Zero Coupon, 1998 3,000,000 (c) 2,977,500
Microcell Telecommunications,
Sr. Discount Notes, Zero Coupon, 2001 10,000,000 (c) 7,475,000
Occidente y Caribe Celular SA,
Sr. Discount Notes, Zero Coupon, 2001 11,000,000 (c) 8,291,250
Omnipoint,
Floating Rate Notes, 8.938%, 2006 5,000,000 (b) 5,018,750
Orion Network Systems,
Sr. Discount Notes, Zero Coupon, 2002 16,000,000 (c) 12,240,000
Pagemart Nationwide,
Sr. Discount Notes, Zero Coupon, 2000 5,000,000 (c) 4,525,000
WinStar Communications,
Sr. Discount Notes, Zero Coupon, 2000 23,000,000 (c) 19,262,500
WinStar Equipment,
Gtd. Notes, 12.50%, 2004 2,000,000 2,275,000
_____________
72,687,500
_____________
TOTAL BONDS AND NOTES
(cost $674,150,494) $672,607,987
_____________
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Equity-Related Securities--2.2% Shares Value
- ------------------------------------------------------- ______________ _____________
Preferred Stock--2.2%
Broadcasting--.3% Spanish Broadcasting System,
Cum., $142.50 2,142 $ 2,270,520
_____________
Food & Beverages--1.1% RJR Nabisco Holdings Capital Trust,
Cum., $2.50 300,000 7,566,690
_____________
Publishing--.8% Newscorp Overseas, Ltd.,
Ser. A, Cum., $2.15625 216,973 5,288,717
_____________
TOTAL PREFERRED STOCK 15,125,927
_____________
Warrants--.0%
Entertainment--.0% Discovery Zone 4,000 20,000
_____________
Wireless Communications--.0% Comunicacion Celular SA 1,750 122,500
_____________
TOTAL WARRANTS 142,500
_____________
TOTAL EQUITY-RELATED SECURITIES
(cost $15,643,139) $ 15,268,427
_____________
</TABLE>
<TABLE>
<CAPTION>
Principal
Short-Term Investments--.2% Amount
- ------------------------------------------------------- ______________
<S> <C> <C>
U.S. Government Agency; Federal Home Loan Banks,
5.85%, 7/1/1998
(cost $1,133,000) $ 1,133,000 $ 1,133,000
_____________
TOTAL INVESTMENTS (cost $690,926,633) 97.5% $689,009,414
_______ _____________
CASH AND RECEIVABLES (NET) 2.5% $ 17,989,657
_______ _____________
NET ASSETS 100.0% $706,999,071
_______ _____________
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, 1998, these securities
amounted to $99,576,262 or 14.1% of net assets.
(b) Variable rate security--interest rate subject to periodic change.
(c) Zero coupon until year shown at which time a stated coupon rate becomes
effective.
(d) Reflects date security can be redeemed at holder's option; the stated
maturity date is 10/30/2005.
(e) Notional face amount shown.
(f) With supplemental interest certificates attached.
(g) With warrants to purchase common stock.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1998 (UNAUDITED)
Cost Value
______________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $690,926,633 $689,009,414
Cash 2,513,378
Receivable for shares of Beneficial Interest subscribed 8,567,307
Interest and dividends receivable 13,127,368
______________
713,217,467
______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 413,882
Due to Distributor 373,729
Payable for investment securities purchased 4,266,278
Payable for shares of Beneficial Interest redeemed 1,119,112
Interest payable--Note 4 45,395
______________
6,218,396
______________
NET ASSETS $706,999,071
______________
REPRESENTED BY: Paid-in capital $708,456,874
Accumulated undistributed investment income--net 318,278
Accumulated net realized gain (loss) on investments 141,138
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3 (1,917,219)
______________
NET ASSETS $706,999,071
______________
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
-----------------------------------
Class A Class B Class C Class R
_____________ ______________ _____________ _____________
<S> <C> <C> <C> <C>
Net Assets $120,135,678 $417,919,420 $168,809,811 $134,162
Shares Outstanding 9,570,501 33,294,082 13,444,537 10,696
NET ASSET VALUE PER SHARE $12.55 $12.55 $12.56 $12.54
_______ _______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Interest $25,229,511
Cash dividend 533,001
_____________
Total Income $25,762,512
EXPENSES: Management fee--Note 2(a) 1,789,802
Distribution and service fees--Note 2(b) 1,840,137
Interest expense--Note 4 106,201
_____________
Total Expenses 3,736,140
____________
INVESTMENT INCOME--NET 22,026,372
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments $ 287,982
Net unrealized appreciation (depreciation)
on investments 562,382
_____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 850,364
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $22,876,736
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997*
_______________ _______________ __________________
<S> <C> <C>
OPERATIONS:
Investment income--net $ 22,026,372 $ 6,988,442
Net realized gain (loss) on investments 287,982 (146,844)
Net unrealized appreciation (depreciation) on investments 562,382 (2,479,601)
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations 22,876,736 4,361,997
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares (4,020,632) (1,398,344)
Class B shares (12,911,171) (4,057,554)
Class C shares (4,773,328) (1,509,642)
Class R shares (6,084) (19,781)
_____________ _____________
Total Dividends (21,711,215) (6,985,321)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares 63,271,892 76,591,614
Class B shares 225,752,239 201,321,431
Class C shares 107,681,498 69,859,568
Class R shares -- 503,000
Dividends reinvested:
Class A shares 2,501,096 814,604
Class B shares 3,359,545 1,172,298
Class C shares 1,413,239 518,369
Class R shares 6,084 19,780
Cost of shares redeemed:
Class A shares (11,606,000) (11,289,662)
Class B shares (9,988,051) (2,850,872)
Class C shares (7,942,436) (2,252,352)
Class R shares -- (400,010)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions 374,449,106 334,007,768
_____________ _____________
Total Increase (Decrease) in Net Assets 375,614,627 331,384,444
NET ASSETS:
Beginning of Period 331,384,444 --
_____________ _____________
End of Period $706,999,071 $331,384,444
_____________ _____________
UNDISTRIBUTED INVESTMENT INCOME--NET $ 318,278 $ 3,121
_____________ _____________
- --------------
* From May 30, 1997 (commencement of operations) to December 31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997*
________________ _________________
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold 5,020,517 6,104,546
Shares issued for dividends reinvested 198,618 65,046
Shares redeemed (920,910) (897,316)
___________ ____________
Net Increase (Decrease) in Shares Outstanding 4,298,225 5,272,276
___________ ____________
Class B
________
Shares sold 17,925,950 16,027,425
Shares issued for dividends reinvested 266,760 93,658
Shares redeemed (792,641) (227,070)
___________ ____________
Net Increase (Decrease) in Shares Outstanding 17,400,069 15,894,013
___________ ____________
Class C
________
Shares sold 8,548,011 5,552,164
Shares issued for dividends reinvested 112,181 41,378
Shares redeemed (629,851) (179,346)
___________ ____________
Net Increase (Decrease) in Shares Outstanding 8,030,341 5,414,196
___________ ____________
Class R
________
Shares sold -- 40,237
Shares issued for dividends reinvested 484 1,571
Shares redeemed -- (31,596)
___________ ____________
Net Increase (Decrease) in Shares Outstanding 484 10,212
___________ ____________
- ---------
* From May 30, 1997 (commencement of operations) to December 31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER LIMITED TERM HIGH 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.
<TABLE>
<CAPTION>
Class A Shares Class B Shares
______________________________ ______________________________
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1998 December 31, June 30, 1998 December 31,
(Unaudited) 1997(1) (Unaudited) 1997(1)
________________ _____________ ________________ ____________
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period $12.46 $12.50 $12.46 $12.50
_______ _______ _______ _______
Investment Operations:
Investment income--net .57 .71 .54 .66
Net realized and unrealized gain (loss) on investments .09 (.04) .09 (.04)
_______ _______ _______ _______
Total from Investment Operations .66 .67 .63 .62
_______ _______ _______ _______
Distributions:
Dividends from investment income--net (.57) (.71) (.54) (.66)
_______ _______ _______ _______
Net asset value, end of period $12.55 $12.46 $12.55 $12.46
_______ _______ _______ _______
TOTAL INVESTMENT RETURN(2,3) 10.81% 9.16% 10.26% 8.57%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets(3) .95% .95% 1.45% 1.45%
Ratio of interest expense to average net assets(3) .05% .08% .04% .09%
Ratio of net investment income to average net assets(3) 9.17% 9.34% 8.57% 8.73%
Portfolio Turnover Rate(4) 29.66% 28.83% 29.66% 28.83%
Net Assets, end of period (000's Omitted) $120,136 $65,705 $417,919 $198,057
- ---------
(1) From May 30, 1997 (commencement of operations) to December 31, 1997.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER LIMITED TERM HIGH 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.
<TABLE>
<CAPTION>
Class C Shares Class R Shares
______________________________ ______________________________
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1998 December 31, June 30, 1998 December 31,
(Unaudited) 1997(1) (Unaudited) 1997(1)
________________ _____________ ________________ ____________
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period $12.47 $12.50 $12.45 $12.50
_______ _______ _______ _______
Investment Operations:
Investment income--net .53 .65 .66 .81
Net realized and unrealized gain (loss) on investments .08 (.03) .01 (.14)
_______ _______ _______ _______
Total from Investment Operations .61 .62 .67 .67
_______ _______ _______ _______
Distributions:
Dividends from investment income--net (.52) (.65) (.58) (.72)
_______ _______ _______ _______
Net asset value, end of period $12.56 $12.47 $12.54 $12.45
_______ _______ _______ _______
TOTAL INVESTMENT RETURN(2) 10.00%(3) 8.47%(3) 11.07% 9.26%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets(2) 1.70% 1.70% .70% .75%
Ratio of interest expense to average net assets(2) .04% .09% .06% .05%
Ratio of net investment income to average net assets(2) 8.30% 8.54% 10.72% 10.08%
Portfolio Turnover Rate(4) 29.66% 28.83% 29.66% 28.83%
Net Assets, end of period (000's Omitted) $168,810 $67,495 $134 $127
- ---------
(1) From May 30, 1997 (commencement of operations) to December 31, 1997.
(2) Annualized.
(3) Exclusive of sales load.
(4) Not 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 separate
diversified series of The Dreyfus/Laurel Funds Trust (the "Trust") which is
registered under the Investment Company Act of 1940 ("Act") as an 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 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 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) and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative proportion of net assets of each class.
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 other than U.S. Treasury Bills) 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.
Short-term investments, other than U.S. Treasury Bills, are carried at amortized
cost, which approximates value. Investments denominated in foreign currencies
are translated into U.S. dollars at the prevailing rates of exchange.
(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.
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(C) DISTRIBUTIONS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain 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.
(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. (The $1,000 attendance fee and reimbursement of meeting expenses are also
borne pro rata by Dreyfus High Yield Strategies Fund). These fees and expenses
are charged and 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: Under the Distribution Plan (the "Plan")
adopted pursuant to Rule 12b-1 under the Act, Class A shares pay annually up to
. 25% of the value of the average daily net assets 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, Class B and
Class C shares pay the Distributor for distributing their 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 Class B
and Class C shares pay Dreyfus Service Corporation or the Distributor for
providing certain services to the holders of their 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, 1998, Class A, Class B and Class C shares were charged $111,440,
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
$763,506 and $437,578, respectively, pursuant to the Plan and Class B and
Class C shares were charged $381,753 and $145,860, respectively, pursuant to the
service plan.
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, during the period ended June 30, 1998, amounted
to $510,216,649 and $148,965,108, respectively.
At June 30, 1998, accumulated net unrealized depreciation on investments was
$1,917,219, consisting of $4,617,472 gross unrealized appreciation and
$6,534,691 gross unrealized depreciation.
At June 30, 1998, 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 may borrow up to $10 million for leveraging purposes under a
short-term unsecured line of credit and participates with other Dreyfus-managed
funds in a $100 million unsecured line of credit primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions.
Interest is charged to the Fund at rates which are related to the Federal Funds
rate in effect at the time of borrowings.
The average daily amount of borrowings outstanding during the period ended
June 30, 1998 was approximately $3,598,000 with a related weighted average
annualized interest rate of 5.95%.
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. 029/759SA986
SEMI-ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
LIMITED TERM
HIGH INCOME FUND
- -------------------------------------------------------------------------------
JUNE 30, 1998
(reg.tm)
[reg.tm, signature logo]
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
Large capitalization growth stocks continued to drive the performance of the
Standard & Poor's 500 Composite Stock Price Index ("S&P 500") in recent months.
Accordingly, Dreyfus Premier Core Value Fund, which concentrates on value
stocks, did not perform as well as its benchmark during the six-month fiscal
period ended June 30, 1998.
For the six-month period, the performance of the various share classes of the
Fund and the S&P 500 is shown in the following table:
Total Return*
____________
Class A shares 8.95%
Class B shares (since inception 1/16/98) 12.60%
Class C shares (since inception 1/16/98) 12.60%
Class R shares 8.76%
Institutional shares 8.97%
S&P 500** 17.72%
ECONOMIC REVIEW
Fears of Federal Reserve Board (the "Fed") tightening appear to have eased due
to the Asian financial crisis, as well as accumulating evidence of slower
overall economic growth since the spring. The Fed's main domestic concern is
that the tight labor market has begun to fuel faster wage growth across many
industries. Thus far, however, rising wages have still not meant rising prices.
Instead, this cost-price mix threatens to further erode corporate profit
margins. Market interest rates have already reflected the slower economy, and
the interest rate curve has become quite flat.
The shift to slower economic growth this spring is largely due to the drag
from Asia's recession, but may well be reinforced this summer by the multiplier
impacts of the General Motors strike. Among broader economic factors, the trade
deficit has widened sharply due to both weak exports and strong growth in
imports. Also, inventories soared earlier this year, potentially creating some
drag on future production. However, slowing industrial output has largely been
met by shortening the manufacturing work week, not by cutting jobs. Hence, the
shift to slower growth has not relieved the tightness in the labor market.
Instead, the virtual absence of bad news has left consumers to enjoy the
benefits of rising real wages and low interest rates that, in turn, have boosted
spending and home ownership.
Although growth in corporate profits has slowed in many sectors in the past
year, consensus estimates of future profit growth continue to be cut by many
analysts. Profit margins had already begun to shrink under the weight of rising
labor costs, making companies' reported profits increasingly dependent on growth
of sales. Overall profits could thus prove quite vulnerable to a period of
significantly slower economic growth.
Virtually all Treasury market interest rates have already fallen near to the
floor set by the Federal Funds rate. This implies to us that further substantial
interest rate drops are unlikely unless the economy weakens enough to justify
action by the Fed to ease credit.
MARKET OVERVIEW
Measured broadly, the six months ended June 30, 1998 was another period of
solid advance for the stock market. Yet that general statement did not apply to
all categories of stocks. The dramatic divergence in performance between the S&P
Barra Growth and Value Indices*** was a feature of the period. The Growth Index
outperformed the Value Index by approximately 1100 basis points during the
half-year (23.1% vs. 12.1%).
Stock groups that were strongest during the half-year included apparel;
financials, particularly banks, brokerages, insurance and diversified financial
services; technology, especially communications and computer issues; and
cyclical consumer stocks such as advertising, airlines, automotive, broadcasting
and some construction.
The weak categories for the period included precious metals, oil drilling and
oilfield suppliers, and some industrial issues.
Corporate profits dropped sharply from the strong pace of last year. According
to the statistical service First Call, profits for stocks in the S&P 500 were
expected to show a rise of just 2.3% for the second quarter, compared to 3.8% in
the first quarter. Of course, there were optimists forecasting a hefty rise in
profits for later this year and early 1999, which could propel stock prices
upward. Yet most investors seemed preoccupied with the here and now, which
included the strike at General Motors plants and the continuing fallout from
financial troubles in Japan and Southeast Asia.
As expected, the Fed at its last meeting made no change in interest rates,
even though inflationary pressures are a constant worry for the Fed. The reason
for their inaction may well have been the precarious state of some economies
elsewhere in the world and the desire not to precipitate a major correction in
the U.S. stock market. Even so, the Fed thought it timely to issue a stern
warning to banks not to become over-extended with unwise loans, which happened
in the 1980s.
Despite warnings like this, and that stock prices are extremely high in
relation to earnings and cash flow, investors still appeared eager to own
equities. Moreover, surveys of consumer sentiment continued to show that the
average consumer was more confident about the future than had been the case in a
generation.
PORTFOLIO FOCUS
Against this backdrop, the Fund continued to emphasize value stocks with
strong operating fundamentals and positive business momentum. The Fund's
portfolio characteristics demonstrate favorable value relative to its benchmark,
the S&P 500. The Fund's 1999 estimated price-to-earnings ratio (P/E) of 14.8 is
well below the S& P 500's P/E of 19.3. The price-to-book ratio also compares
favorably at 2.6 for the Fund and 4.3 for the S&P 500.
Currently, the Fund emphasizes the financial services, consumer services, and
energy sectors. Union Pacific, Harcourt General, Columbia/HCA Healthcare, and
Waste Management are the Fund's largest holdings.
The Fund' s strongest performing sectors during the first half of the year
included capital goods, consumer durables, and financial services. Alcatel
Alsthom ADS, Philips Electronics, News Corp., Waste Management, and NationsBank
were among the top contributors to performance during the second quarter of the
year. Underperforming sectors included technology, consumer nondurables, and
health care. RJR Nabisco Holdings, Union Pacific, Loews, and Tosco were among
the stocks that detracted from the Fund's performance.
Thank you for your confidence in Dreyfus. We look forward to continuing to
serve your investment needs.
Sincerely,
[Valerie J. Sill signature logo]
Valerie J. Sill
Portfolio Manager
July 20, 1998
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.
**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.
*** The combination of the S&P Barra Growth and S&P Barra Value indices make up
the S& P 500. The Value Index contains the companies with lower price-to-book
ratios while the Growth Index contains the companies with higher price-to-book
ratios.
<TABLE>
<CAPTION>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
Common Stocks--94.7% Shares Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
Aerospace & Military
Technology--.0% C.S.F. (Thompson) . . . . . . . . . . . . . . . . . . 1,300 $ 49,333
_____________
Appliances--1.3% Philips Electronics . . . . . . . . . . . . . . . . . 104,000 8,840,000
Rinnai . . . . . . . . . . . . . . . . . . . . . . . . 4,300 64,952
Sony . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 128,934
_____________
9,033,886
_____________
Automobiles--.0% Autoliv . . . . . . . . . . . . . . . . . . . . . . . 3,300 105,200
Honda Motor . . . . . . . . . . . . . . . . . . . . . 2,000 71,066
Toyota Motor . . . . . . . . . . . . . . . . . . . . . 3,000 77,468
Volkswagen . . . . . . . . . . . . . . . . . . . . . . 70 67,461
_____________
321,195
_____________
Banking--.2% ABN-Amro . . . . . . . . . . . . . . . . . . . . . . . 4,096 95,625
Australia & New Zealand Banking . . . . . . . . . . . 10,809 74,547
Banco Pinto & Sotto Mayor . . . . . . . . . . . . . . 1,600 39,622
Corporacion Bancaria de Espana, ADS . . . . . . . . . 2,400 108,300
Deutsche Bank . . . . . . . . . . . . . . . . . . . . 1,200 101,250
Development Bank of Singapore . . . . . . . . . . . . 15,000 83,185
Dexia France . . . . . . . . . . . . . . . . . . . . . 450 60,437
Guoco Group . . . . . . . . . . . . . . . . . . . . . 11,000 11,572
HSBC . . . . . . . . . . . . . . . . . . . . . . . . . 1,738 42,513
Istituto Mobiliare Italiano, ADS . . . . . . . . . . . 800 38,150
Jyske Bank . . . . . . . . . . . . . . . . . . . . . . 300 35,328
Kookmin Bank, ADS . . . . . . . . . . . . . . . . . . 298 (a,b) 1,155
Societe Generale . . . . . . . . . . . . . . . . . . . 510 105,771
Standard Chartered . . . . . . . . . . . . . . . . . . 7,000 79,504
UBS . . . . . . . . . . . . . . . . . . . . . . . . . 300 111,351
_____________
988,310
_____________
Basic Industries--5.9% Bethlehem Steel . . . . . . . . . . . . . . . . . . . 239,700 (a) 2,981,269
British Steel, ADS . . . . . . . . . . . . . . . . . . 227,900 5,184,725
Broken Hill Property, ADR . . . . . . . . . . . . . . 266,700 4,517,231
Crown Cork & Seal . . . . . . . . . . . . . . . . . . 95,900 4,555,250
IMC Global . . . . . . . . . . . . . . . . . . . . . . 166,800 5,024,850
INCO . . . . . . . . . . . . . . . . . . . . . . . 238,600 3,250,925
Louisiana Pacific . . . . . . . . . . . . . . . . . . 184,900 3,374,425
Phelps Dodge . . . . . . . . . . . . . . . . . . . . . 55,200 3,156,750
Reynolds Metals . . . . . . . . . . . . . . . . . . . 97,500 5,453,906
Union Carbide . . . . . . . . . . . . . . . . . . . . 75,700 4,040,488
_____________
41,539,819
_____________
Beverages & Tobacco--.0% Mikuni Coca Cola Bottling . . . . . . . . . . . . . . 2,000 34,237
_____________
Building Materials--.0% Boral . . . . . . . . . . . . . . . . . . . . . . . . 25,439 47,720
Forbo Holding . . . . . . . . . . . . . . . . . . . . 160 81,290
Sekisui Chemical . . . . . . . . . . . . . . . . . . . 7,000 35,749
_____________
164,759
_____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Common Stocks (continued) Shares Value
- ------------------------------------------------------- _____________ _____________
Capital Goods--8.1% Case . . . . . . . . . . . . . . . . . . . . . . . . . 1,300 $ 62,725
Federal-Mogul . . . . . . . . . . . . . . . . . . . . 60,500 4,083,750
Lockheed Martin . . . . . . . . . . . . . . . . . . . 61,500 6,511,312
LucasVarity, ADR . . . . . . . . . . . . . . . . . . . 184,800 7,357,350
Northrop Grumman . . . . . . . . . . . . . . . . . . . 58,100 5,991,563
Raytheon, Cl. A . . . . . . . . . . . . . . . . . . . 127,100 7,324,138
United Technologies . . . . . . . . . . . . . . . . . 114,100 10,554,250
Waste Management . . . . . . . . . . . . . . . . . . . 426,500 14,927,500
_____________
56,812,588
_____________
Chemicals--.0% AKZO Nobel, ADR . . . . . . . . . . . . . . . . . . . 600 66,525
Air Liquide . . . . . . . . . . . . . . . . . . . . . 338 55,685
Bayer . . . . . . . . . . . . . . . . . . . . . . . . 2,150 111,030
_____________
233,240
_____________
Construction & Housing--.0% Hollandsche Beton Groep . . . . . . . . . . . . . . . 3,080 64,050
Nishimatsu Construction . . . . . . . . . . . . . . . 8,000 39,130
Tarkett . . . . . . . . . . . . . . . . . . . . . . . 1,000 33,174
_____________
136,354
_____________
Consumer Durables--3.9% Lear . . . . . . . . . . . . . . . . . . . . . . . . . 172,000 (a) 8,825,750
Republic Industries . . . . . . . . . . . . . . . . . 470,600 (a) 11,765,000
Whirpool . . . . . . . . . . . . . . . . . . . . . . . 100,300 6,895,625
_____________
27,486,375
_____________
Consumer Non-Durables--9.0% Archer-Daniels-Midland . . . . . . . . . . . . . . . . 5,355 103,753
Harcourt General . . . . . . . . . . . . . . . . . . . 275,400 16,386,300
Hasbro . . . . . . . . . . . . . . . . . . . . . . . . 100,000 3,931,250
Kimberly-Clark . . . . . . . . . . . . . . . . . . . . 206,800 9,486,950
Loews . . . . . . . . . . . . . . . . . . . . . . . . 143,700 12,519,862
Philip Morris Cos. . . . . . . . . . . . . . . . . . . 359,300 14,147,437
RJR Nabisco Holdings . . . . . . . . . . . . . . . . . 286,300 6,799,625
_____________
63,375,177
_____________
Consumer Services--13.1% ACNielsen . . . . . . . . . . . . . . . . . . . . . . 247,500 (a) 6,249,375
Abercrombie & Fitch, Cl. A . . . . . . . . . . . . . . 51 (a) 2,263
American Stores . . . . . . . . . . . . . . . . . . . 274,700 6,644,306
Circuit City Stores-Circuit City Group . . . . . . . . 237,700 11,142,187
Deluxe . . . . . . . . . . . . . . . . . . . . . . . . 112,300 4,021,744
Dun & Bradstreet . . . . . . . . . . . . . . . . . . . 151,100 (a) 5,458,488
Federated Department Stores . . . . . . . . . . . . . 158,900 (a) 8,550,806
First Data . . . . . . . . . . . . . . . . . . . . . . 232,600 7,748,488
Limited . . . . . . . . . . . . . . . . . . . . . . . 242,700 8,039,436
McDonald's . . . . . . . . . . . . . . . . . . . . . . 136,800 9,439,200
Toys R Us . . . . . . . . . . . . . . . . . . . . . . 261,900 (a) 6,171,019
Tricon Global Restaurants . . . . . . . . . . . . . . 236,000 (a) 7,478,250
Venator Group . . . . . . . . . . . . . . . . . . . . 550,000 (a) 10,518,750
Viacom, Cl. B . . . . . . . . . . . . . . . . . . . . 2,800 (a) 163,100
_____________
91,627,412
_____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Common Stocks (continued) Shares Value
- ------------------------------------------------------- _____________ _____________
Data Processing--.0% Canon . . . . . . . . . . . . . . . . . . . . . . . . 4,000 $ 90,631
_____________
Electrical & Electronics--.1% Alcatel Alsthom, ADS . . . . . . . . . . . . . . . . . 281 11,433
Hitachi . . . . . . . . . . . . . . . . . . . . . . . 9,000 58,587
Mabuchi Motor . . . . . . . . . . . . . . . . . . . . 1,000 63,298
Murata Manufacturing . . . . . . . . . . . . . . . . . 3,000 97,105
Rohm . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 102,500
Siemens . . . . . . . . . . . . . . . . . . . . . . . 1,900 115,717
Toshiba . . . . . . . . . . . . . . . . . . . . . . . 10,000 40,784
_____________
489,424
_____________
Energy--11.5% Amoco . . . . . . . . . . . . . . . . . . . . . . . 166,500 6,930,562
Burlington Resources . . . . . . . . . . . . . . . . . 153,000 6,588,563
Canadian Pacific . . . . . . . . . . . . . . . . . . . 350,000 9,931,250
ENI, ADS . . . . . . . . . . . . . . . . . . . . . . . 1,500 97,500
Elf Aquitaine, ADS . . . . . . . . . . . . . . . . . . 107,400 7,625,400
Fred Olson Energy . . . . . . . . . . . . . . . . . . 2,200 (a) 29,263
Mobil . . . . . . . . . . . . . . . . . . . . . . . . 137,200 10,512,950
Oryx Energy . . . . . . . . . . . . . . . . . . . . . 130,800 (a) 2,893,950
Phillips Petroleum . . . . . . . . . . . . . . . . . . 215,900 10,403,681
Repsol, ADR . . . . . . . . . . . . . . . . . . . . . 2,500 137,500
Tosco . . . . . . . . . . . . . . . . . . . . . . . . 276,400 8,119,250
Unocal . . . . . . . . . . . . . . . . . . . . . . . . 279,000 9,974,250
YPF Sociedad Anonima, ADS . . . . . . . . . . . . . . 227,100 6,827,194
_____________
80,071,313
_____________
Energy Equipment & Services--.0% Endesa . . . . . . . . . . . . . . . . . . . . . . . . 3,800 83,066
_____________
Financial Services--16.1% Ahmanson (H F) & Co. . . . . . . . . . . . . . . . . . 102,700 7,291,700
Allmerica Financial . . . . . . . . . . . . . . . . . 103,900 6,753,500
Astoria Financial . . . . . . . . . . . . . . . . . . 36,300 1,942,050
BankAmerica . . . . . . . . . . . . . . . . . . . . . 86,260 7,456,099
CIGNA . . . . . . . . . . . . . . . . . . . . . . . . 195,500 13,489,500
Chase Manhattan . . . . . . . . . . . . . . . . . . . 188,300 14,216,650
Credit Saison . . . . . . . . . . . . . . . . . . . . 4,000 79,122
Equitable Cos. . . . . . . . . . . . . . . . . . . . . 102,100 7,651,119
Everest Reinsurance Holdings . . . . . . . . . . . . . 168,800 6,488,250
First Union . . . . . . . . . . . . . . . . . . . . . 226,828 13,212,731
General Re . . . . . . . . . . . . . . . . . . . . . . 25,600 6,489,600
Golden State Bancorp . . . . . . . . . . . . . . . . . 54,000 (a) 1,606,500
Henderson Investment . . . . . . . . . . . . . . . . . 90,000 46,760
NationsBank . . . . . . . . . . . . . . . . . . . . . 189,975 14,533,088
Nichiei . . . . . . . . . . . . . . . . . . . . . . . 1,380 93,704
Republic New York . . . . . . . . . . . . . . . . . . 79,400 4,997,238
SLM Holding . . . . . . . . . . . . . . . . . . . . . 3,150 154,350
Washington Mutual . . . . . . . . . . . . . . . . . . 154,020 6,690,244
_____________
113,192,205
_____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Common Stocks (continued) Shares Value
- ------------------------------------------------------- _____________ _____________
Foods & Related Products--.0% Barry Callebaut . . . . . . . . . . . . . . . . . . . 169 (a) $ 36,369
Bongrain . . . . . . . . . . . . . . . . . . . . . . . 100 50,092
Danone . . . . . . . . . . . . . . . . . . . . . . . . 300 82,511
Kao . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 92,357
_____________
261,329
_____________
Forest & Paper Products--.0% Fletcher Challenge Paper . . . . . . . . . . . . . . . 6,710 7,435
Koninklijke KNP . . . . . . . . . . . . . . . . . . . 2,800 72,098
_____________
79,533
_____________
Health Care--7.5% Aetna . . . . . . . . . . . . . . . . . . . . . . . . 79,500 6,051,938
Amgen . . . . . . . . . . . . . . . . . . . . . . . . 129,300 (a) 8,452,988
Columbia/HCA Healthcare . . . . . . . . . . . . . . . 488,200 14,218,825
Foundation Health Systems, Cl. A . . . . . . . . . . . 261,100 (a) 6,886,513
Hoechst . . . . . . . . . . . . . . . . . . . . . . . 1,900 95,336
Mallinckrodt . . . . . . . . . . . . . . . . . . . . . 114,000 3,384,375
Medeva . . . . . . . . . . . . . . . . . . . . . . . . 13,000 37,292
Merck KGaA . . . . . . . . . . . . . . . . . . . . . . 900 40,258
Pharmacia & Upjohn . . . . . . . . . . . . . . . . . . 168,300 7,762,838
Tenet Healthcare . . . . . . . . . . . . . . . . . . . 163,500 (a) 5,109,375
Yamanouchi Pharmaceutical . . . . . . . . . . . . . . 3,000 62,363
_____________
52,102,101
_____________
Industrial Components--.0% LucasVarity, ADS . . . . . . . . . . . . . . . . . . . 27,251 108,169
Michelin . . . . . . . . . . . . . . . . . . . . . . . 1,009 58,100
Minebea . . . . . . . . . . . . . . . . . . . . . . . 8,000 79,468
_____________
245,737
_____________
Insurance--.0% Dai-Tokyo Fire & Marine Insurance . . . . . . . . . . 14,000 48,639
Royal & Sun Alliance Insurance . . . . . . . . . . . . 10,120 104,560
_____________
153,199
_____________
Leisure & Tourism--.0% NAMCO . . . . . . . . . . . . . . . . . . . . . . . . 2,000 46,610
Stakis . . . . . . . . . . . . . . . . . . . . . . . . 25,000 50,868
_____________
97,478
_____________
Machinery--.1% Alstom, ADR . . . . . . . . . . . . . . . . . . . . . 1,905 (a) 62,032
Fuji Machine Manufacturing . . . . . . . . . . . . . . 2,000 52,940
GEA . . . . . . . . . . . . . . . . . . . . . . . . . 190 74,063
Laird Group . . . . . . . . . . . . . . . . . . . . . 9,400 43,896
Mitsubishi Heavy Industries . . . . . . . . . . . . . 13,000 48,998
Scania AB . . . . . . . . . . . . . . . . . . . . . . 1,800 43,655
Stork . . . . . . . . . . . . . . . . . . . . . . . . 1,100 34,960
Sulzer . . . . . . . . . . . . . . . . . . . . . . . . 80 63,021
_____________
423,565
_____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Common Stocks (continued) Shares Value
- ------------------------------------------------------- _____________ _____________
Merchandising--.1% Guyenne et Gascogne . . . . . . . . . . . . . . . . . 150 $ 61,006
Ito-Yokado . . . . . . . . . . . . . . . . . . . . . . 2,000 93,940
Matsumotokiyoshi . . . . . . . . . . . . . . . . . . . 1,500 52,651
Safeway . . . . . . . . . . . . . . . . . . . . . . . 15,395 100,777
Storehouse . . . . . . . . . . . . . . . . . . . . . . 23,000 95,899
_____________
404,273
_____________
Metals--.0% China Steel, ADR . . . . . . . . . . . . . . . . . . . 7 (b) 90
KM Europa Metal . . . . . . . . . . . . . . . . . . . 200 25,213
Pechiney A . . . . . . . . . . . . . . . . . . . . . . 1,000 40,176
Rio Tinto . . . . . . . . . . . . . . . . . . . . . . 7,000 78,804
Usinor . . . . . . . . . . . . . . . . . . . . . . . . 2,800 43,149
_____________
187,432
_____________
Miscellaneous Materials--.0% Bunzl . . . . . . . . . . . . . . . . . . . . . . . . 19,000 88,727
_____________
Multi Industry--.1% BTR . . . . . . . . . . . . . . . . . . . . . . . . . 23,156 65,654
Hunter Douglas . . . . . . . . . . . . . . . . . . . . 1,928 104,490
Orkla AS-B . . . . . . . . . . . . . . . . . . . . . . 1,200 25,663
Pacific Dunlop . . . . . . . . . . . . . . . . . . . . 23,686 38,273
Swire Pacific . . . . . . . . . . . . . . . . . . . . 25,000 15,006
Tomkins . . . . . . . . . . . . . . . . . . . . . . . 24,267 131,637
_____________
380,723
_____________
Recreation--.0% Sankyo . . . . . . . . . . . . . . . . . . . . . . . . 2,000 32,368
_____________
Technology--8.9% Adaptec . . . . . . . . . . . . . . . . . . . . . . . 327,600 (a) 4,688,775
Applied Materials . . . . . . . . . . . . . . . . . . 223,000 (a) 6,578,500
Compaq Computer . . . . . . . . . . . . . . . . . . . 299,700 8,503,988
Electronic Data Systems . . . . . . . . . . . . . . . 188,200 7,528,000
Intel . . . . . . . . . . . . . . . . . . . . . . . . 97,300 7,212,363
International Business Machines . . . . . . . . . . . 91,100 10,459,419
Lam Research . . . . . . . . . . . . . . . . . . . . . 220,300 (a) 4,213,238
National Semiconductor . . . . . . . . . . . . . . . . 13,300 (a) 175,394
Sun Microsystems . . . . . . . . . . . . . . . . . . . 180,200 (a) 7,827,438
Teradyne . . . . . . . . . . . . . . . . . . . . . . . 189,700 (a) 5,074,475
_____________
62,261,590
_____________
Telecommunications--.0% Hellenic Tellecommunication Organization . . . . . . . 3,500 (b) 44,975
Royal PTT Nederland, ADS . . . . . . . . . . . . . . . 1,070 68,079
SK Telecom . . . . . . . . . . . . . . . . . . . . . . 6 2,806
Telecom Italia . . . . . . . . . . . . . . . . . . . . 17,000 82,568
Telefonica del Peru, ADS . . . . . . . . . . . . . . . 1,400 28,613
_____________
227,041
_____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Common Stocks (continued) Shares Value
- ------------------------------------------------------- _____________ _____________
Transportation--2.4% Air New Zealand . . . . . . . . . . . . . . . . . . . 11,000 $ 11,790
British Airways . . . . . . . . . . . . . . . . . . . 1,911 20,669
British Airways, ADR . . . . . . . . . . . . . . . . . 360 38,723
Deutsche Lufthansa . . . . . . . . . . . . . . . . . . 2,900 72,877
Union Pacific . . . . . . . . . . . . . . . . . . . . 372,000 16,414,500
_____________
16,558,559
_____________
Utilities--6.4% Bell Atlantic . . . . . . . . . . . . . . . . . . . . 133,384 6,085,645
CMS Energy . . . . . . . . . . . . . . . . . . . . . . 175,000 7,700,000
Duke Energy . . . . . . . . . . . . . . . . . . . . . 77,400 4,585,950
Edison International . . . . . . . . . . . . . . . . . 127,300 3,763,306
Entergy . . . . . . . . . . . . . . . . . . . . . . . 228,900 6,580,875
First Philippine Holdings, Cl. B . . . . . . . . . . . 8,400 5,640
GTE . . . . . . . . . . . . . . . . . . . . . . . . . 105,500 5,868,438
Gas Y Electridad . . . . . . . . . . . . . . . . . . . 1,022 77,642
Hongkong Electric Holdings . . . . . . . . . . . . . . 22,000 68,155
Illinova . . . . . . . . . . . . . . . . . . . . . . . 4,400 132,000
Pinnacle West Capital . . . . . . . . . . . . . . . . 134,900 6,070,500
PowerGen . . . . . . . . . . . . . . . . . . . . . . . 8,307 114,715
Southern . . . . . . . . . . . . . . . . . . . . . . . 130,700 3,618,756
VEBA . . . . . . . . . . . . . . . . . . . . . . . . . 1,450 97,289
Viag . . . . . . . . . . . . . . . . . . . . . . . . . 150 103,008
_____________
44,871,919
_____________
Wholesale &
International Trade--.0% Kesko . . . . . . . . . . . . . . . . . . . . . . . . 3,600 56,326
Marubeni . . . . . . . . . . . . . . . . . . . . . . . 22,000 43,834
_____________
100,160
_____________
TOTAL COMMON STOCKS
(cost $603,508,609) . . . . . . . . . . . . . . . $664,205,058
_____________
Preferred Stocks--2.0%
- -------------------------------------------------------
Aerospace & Military
Technology--.0% Rheinmetall . . . . . . . . . . . . . . . . . . . . . 1,500 $ 42,713
_____________
Banking--.0% Bank Austria . . . . . . . . . . . . . . . . . . . . . 1,260 102,099
_____________
Broadcasting & Publishing--2.0% News . . . . . . . . . . . . . . . . . . . . . . . . . 483,000 13,644,750
_____________
Merchandising--.0% Hugo Boss . . . . . . . . . . . . . . . . . . . . . . 17 37,598
_____________
TOTAL PREFERRED STOCKS
(cost $8,307,056) . . . . . . . . . . . . . . . . $ 13,827,160
_____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Short-Term Investments--2.7% Amount Value
- ------------------------------------------------------- _____________ ____________
Commercial Paper; General Electric Corporation,
6.45% due 7/1/98
(cost $18,886,000) . . . . . . . . . . . . . . . . $ 18,886,000 $ 18,886,000
_____________
TOTAL INVESTMENTS (cost $630,701,665). . . . . . . . . . . . . . . . . . . . . . . . . . . 99.4% $696,918,218
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6% $ 4,430,685
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $701,348,903
_______ _____________
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, 1998,
these securities amounted to $46,220 or approximately .01% of net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1998 (UNAUDITED)
Cost Value
_____________ ___________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $630,701,665 $696,918,218
Cash denominated in foreign currencies . . . . . . . . . 602,863 591,337
Receivable for investment securities sold . . . . . . . . 6,278,023
Dividends and interest receivable . . . . . . . . . . . . 1,401,195
Receivable for shares of Beneficial Interest subscribed . . 89,844
_____________
705,278,617
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 642,302
Due to Distributor . . . . . . . . . . . . . . . . . . . 9,958
Cash overdraft due to Custodian . . . . . . . . . . . . . 24,191
Payable for investment securities purchased . . . . . . . 2,978,012
Payable for shares of Beneficial Interest redeemed . . . 275,153
Net unrealized depreciation on forward
currency exchange contracts--Note 1(d) . . . . . . . . 98
_____________
3,929,714
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $701,348,903
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $559,618,012
Accumulated distributions in excess of investment
income--net . . . . . . . . . . . . . . . . . . . . . . (109,755)
Accumulated net realized gain (loss) on investments . . . 75,637,881
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions . . . 66,202,765
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $701,348,903
_____________
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
_________________________________________________
Class A Class B Class C Class R Institutional
_____________ ____________ ____________ ____________ ____________
<S> <C> <C> <C> <C> <C>
Net Assets . . . . . . . . . . . . . . . . . . $616,981,824 $1,395,887 $160,765 $924,652 $81,885,775
Shares Outstanding . . . . . . . . . . . . . . 19,291,941 43,661 5,028 28,921 2,562,563
NET ASSET VALUE PER SHARE. . . . . . . . . . . $31.98 $31.97 $31.97 $31.97 $31.95
_______ _______ _______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $100,817 foreign taxes
withheld at source) . . . . . . . . . . . . . . . . . $ 6,014,279
Interest . . . . . . . . . . . . . . . . . . . . . . . 403,872
____________
Total Income . . . . . . . . . . . . . . . . . . . $ 6,418,151
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . . . . . 3,123,897
Distribution and service fees--Note 2(b) . . . . . . . . 827,930
Loan commitment fees--Note 4 . . . . . . . . . . . . . . 2,332
____________
Total Expenses . . . . . . . . . . . . . . . . . . 3,954,159
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,463,992
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments and
foreign currency transactions . . . . . . . . . . . . $76,164,864
Net realized gain (loss) on forward currency
exchange contracts . . . . . . . . . . . . . . . . . . (82,791)
____________
Net Realized Gain (Loss) . . . . . . . . . . . . . 76,082,073
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions . . . . . . . . . . (18,867,246)
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 57,214,827
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $59,678,819
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1998(1) Year Ended
(Unaudited) December 31, 1997(2)
________________ ______________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,463,992 $ 4,258,431
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . 76,082,073 134,796,722
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . (18,867,246) 2,183,414
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . 59,678,819 141,238,567
_____________ _____________
DIVIDENDS TO SHAREHOLDERS:
From investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,961,871) (3,766,094)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (359) ---
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50) ---
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,100) (124,133)
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (331,206) (593,353)
In excess of investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (93,205) (139,777)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17) ----
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) ----
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (195) (4,607)
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,336) (22,022)
From net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,078,832) (117,738,346)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,917) ----
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,447) ----
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,168) (2,973,474)
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,926,880) (16,088,315)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,447,585) (141,450,121)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,017,053 145,936,701
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,432,497 ---
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,360 ---
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139,446 1,897,752
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,845,173 22,101,585
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,817,962 104,964,016
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,212 ---
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,304 ---
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,460 3,102,096
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,208,461 16,151,789
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (81,666,586) (152,159,333)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,758) ---
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (161,308) (15,558,384)
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,601,266) (29,635,346)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . (6,799,990) 96,800,876
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . 34,431,244 96,589,322
- -----------------------------
(1) Effective January 16, 1998, Investor shares were redesignated as Class A
shares, Restricted shares were redesignated as Class R shares and the Fund
commenced selling Class B and Class C shares.
(2) Effective August 15, 1997, Class R shares were redesignated as Restricted
shares.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
June 30, 1998(1) Year Ended
(Unaudited) December 31, 1997(2)
________________ ________________
<S> <C> <C>
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $666,917,659 $570,328,337
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $701,348,903 $666,917,659
_____________ _____________
DISTRIBUTIONS IN EXCESS OF INVESTMENT INCOME--NET. . . . . . . . . . . . . . . . . $ (109,755) $ (166,406)
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,933,433 4,295,680
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . 422,093 3,583,594
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,510,672) (4,447,295)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . (155,146) 3,431,979
__________ __________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,231 ---
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . 220 ---
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (790) ---
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . 43,661 ---
__________ __________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,988 ---
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . 40 ---
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . 5,028 ---
__________ __________
Class R
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,433 54,551
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . 784 105,597
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,085) (512,826)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . 132 (352,678)
__________ __________
Institutional
_____________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,662 629,753
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . 67,526 551,297
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (268,770) (875,068)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . (109,582) 305,982
__________ __________
- -----------------------------
(1) Effective January 16, 1998, Investor shares were redesignated as Class A shares, Restricted shares were redesignated as Class R
shares
and the Fund commenced selling Class B and Class C shares.
(2) Effective August 15, 1997, Class R shares were redesignated as Restricted shares.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY 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.
Class A Shares(1)
_________________________________________________________________________
Six Months Ended
June 30, 1998 Year Ended December 31,
_____________________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994(2) 1993(3)
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $30.11 $30.40 $30.13 $24.56 $27.80 $25.46
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .11 .22 .31 .41 .42 .31
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . 2.61 6.98 6.03 8.24 (.29) 3.86
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . 2.72 7.20 6.34 8.65 .13 4.17
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.11) (.23) (.30) (.45) (.40) (.30)
Dividends in excess of investment income--net . . (.00)(4) (.01) -- -- -- --
Dividends from net realized gain on investments . . (.74) (7.25) (5.77) (2.63) (2.97) (1.53)
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . (.85) (7.49) (6.07) (3.08) (3.37) (1.83)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $31.98 $30.11 $30.40 $30.13 $24.56 $27.80
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . 8.95%(5) 25.21% 21.44% 35.56% .38% 16.51%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . .57%(5) 1.14% 1.13% 1.13% 1.11% 1.15%
Ratio of net investment income
to average net assets . . . . . . . . . . . . .91%(5) .64% .96% 1.43% 1.47% 1.13%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . -- .01% .02% .02% .01% .01%
Portfolio Turnover Rate . . . . . . . . . . . . . 47.32%(5) 92.99% 88.46% 54.42% 73.00% 75.00%
Net Assets, end of period (000's Omitted) . . . . $616,982 $585,624 $486,816 $401,674 $317,868 $349,813
- -----------------------------
(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. Effective January 16, 1998, Investors Shares were redesignated
as Class A 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 began serving as the Fund's
investment manager.
(3) Per share amounts have been calculated using the monthly average share
method.
(4) Amount represents less than $.01.
(5) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY 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 the period from January 16, 1998
(commencement of initial offering) to June 30, 1998. This information has been
derived from the Fund's financial statements.
Class B Shares
________________
Period Ended
June 30, 1998
PER SHARE DATA: (Unaudited)
________________
<S> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . $29.04
______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .01
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . 3.67
______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . . . . . . 3.68
______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . . . . . . (.01)
Dividends in excess of investment income--net . . . . . . . . . . . . . . . . . . (.00)(1)
Dividends from net realized gain on investments . . . . . . . . . . . . . . . . . (.74)
______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.75)
______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . $31.97
______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.60%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . . . . . . .86%(2)
Ratio of net investment income to average net assets . . . . . . . . . . . . . . .88%(2)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.32%(2)
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . . . . . . $1,396
- -----------------------------
(1) Amount represents less than $.01.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY 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 the period from January 16, 1998
(commencement of initial offering) to June 30, 1998. This information has been
derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Class C Shares
________________
Period Ended
June 30, 1998
PER SHARE DATA: (Unaudited)
________________
<S> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . $29.04
______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . 3.68
______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . . . . . . 3.68
______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . . . . . . (.01)
Dividends in excess of investment income--net . . . . . . . . . . . . . . . . . . (.00)(1)
Dividends from net realized gain on investments . . . . . . . . . . . . . . . . . (.74)
______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.75)
______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . $31.97
______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.60%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . . . . . . .86%(2)
Ratio of net investment income to average net assets . . . . . . . . . . . . . . .87%(2)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.32%(2)
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . . . . . . $161
- -----------------------------
(1) Amount represents less than $.01.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY 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.
<TABLE>
<CAPTION>
Class R Shares
______________________________________________________________
Six Months Ended Period Ended
June 30, 1998 Year Ended December 31, December 31,
_____________________________
PER SHARE DATA: (Unaudited) 1997(1,2) 1996 1995 1994(3,4)
__________ ______ ______ ______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . $30.11 $30.46 $30.18 $24.56 $28.45
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . .15 .33 .36 .62 .29
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . 2.60 6.90 6.08 8.16 (.83)
______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . . 2.75 7.23 6.44 8.78 (.54)
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . (.15) (.32) (.39) (.53) (.38)
Dividends in excess of investment income--net . . . (.00)(5) (.01) -- -- --
Dividends from net realized gain on investments . . (.74) (7.25) (5.77) (2.63) (2.97)
______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . (.89) (7.58) (6.16) (3.16) (3.35)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . $31.97 $30.11 $30.46 $30.18 $24.56
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . 8.76%(6) 25.54% 21.74% 36.05% (2.31%)(6)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . .41%(6) .89% .88% .88% .35%(6)
Ratio of net investment income
to average net assets . . . . . . . . . . . . . .84%(6) .88% 1.23% 1.93% .70%(6)
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . -- .01% .02% .02% .01%(6)
Portfolio Turnover Rate . . . . . . . . . . . . . . 47.32%(6) 92.99% 88.46% 54.42% 73.00%
Net Assets, end of period (000's Omitted) . . . . . $925 $867 $11,618 $185 $1,070
- -----------------------------
(1) On August 15, 1997, Class R shares were redesignated as Restricted shares
and effective January 16, 1998, Restricted shares were redesignated as
Class R shares.
(2) Per share amounts have been calculated using the monthly average share
method.
(3) On August 4, 1994, the Fund commenced selling Trust shares. Effective
October 17, 1994 the Trust shares were reclassified as Class R shares.
(4) 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 began serving as the Fund's investment manager.
(5) Amount represents less than $.01.
(6) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY 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.
<TABLE>
<CAPTION>
Institutional Shares
________________________________________________________________________
Six Months Ended Period Ended
June 30, 1998 Year Ended December 31, December 31,
______________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994(1) 1993(2,3)
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . $30.10 $30.38 $30.12 $24.56 $27.80 $25.96
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . .13 .26 .36 .47 .47 .32
Net realized and unrealized gain (loss)
on investments . . . . . . . . . 2.59 6.98 6.01 8.20 (.31) 3.38
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . 2.72 7.24 6.37 8.67 .16 3.70
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment
income--net . . . . . . . . . . . . (.13) (.26) (.34) (.48) (.43) (.33)
Dividends in excess of investment
income--net . . . . . . . . . . . . (.00)(4) (.01) -- -- -- --
Dividends from net realized gain
on investments . . . . . . . . . . (.74) (7.25) (5.77) (2.63) (2.97) (1.53)
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . (.87) (7.52) (6.11) (3.11) (3.40) (1.86)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . $31.95 $30.10 $30.38 $30.12 $24.56 $27.80
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . 8.97%(5) 25.34% 21.57% 35.60% .49% 14.38%(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets . . . . . . . . . . . . .52%(5) 1.04% 1.03% 1.03% 1.02% .95%(5)
Ratio of net investment income
to average net assets . . . . . . .91%(5) .74% 1.07% 1.53% 1.57% 1.13%(5)
Decrease reflected in above
expense ratios due to
undertakings by the Manager . . . . -- .01% .02% .02% .01% --
Portfolio Turnover Rate . . . . . . . . 47.32%(5) 92.99% 88.46% 54.42% 73.00% 75.00%
Net Assets, end of period (000's Omitted) $81,886 $80,427 $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 began serving 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) Amount represents less than $.01.
(5) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Core Value Fund (the "Fund") is a separate diversified series
of The Dreyfus/Laurel Funds Trust (the "Trust") which is registered under the
Investment Company Act of 1940 ("Act") as an 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").
On November 20, 1997, the Fund's Trustees approved a change to the Fund's name
from "Dreyfus Core Value Fund" to "Dreyfus Premier Core Value Fund," which
became effective January 16, 1998.
Premier Mutual Fund Services, Inc. (the "Distributor"), is the distributor of
the Fund's shares. Effective January 16, 1998, Investor shares were redesignated
as Class A shares, Restricted shares were redesignated as Class R shares and the
Fund commenced selling Class B and Class C 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, Class R and Institutional shares.
Class A shares are subject to a sales charge imposed at the time of purchase and
bear a distribution fee. Class B shares are subject to a contingent deferred
sales charge (" CDSC") imposed on Class B redemptions made within six years of
purchase. Class C shares are subject to a contingent deferred sales charge
("CDSC") imposed on Class C shares redeemed within one year of purchase. Class B
and Class C shares bear a distribution and service fee. Class R shares are sold
at net asset value per share 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. 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. Each class of shares has identical
rights and privileges, except with respect to the distribution and service fees
and voting rights on matters affecting a single class.
Prior to January 16, 1998, the Fund was authorized to issue an unlimited
number of shares of Beneficial Interest in the following classes of shares:
Investor, Institutional and Restricted. Investor shares were sold primarily to
retail investors and bore a distribution fee. Restricted shares were 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
bore no distribution fee.
Investment income, net of expenses (other than class specific expenses) and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative proportion of net assets of each class.
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.
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
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 and 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 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, 1998:
<TABLE>
<CAPTION>
Foreign
Currency Unrealized
Forward Currency Exchange Contracts Amounts Cost Value (Depreciation)
_________________________________ ___________ _______ _______ _____________
<S> <C> <C> <C> <C>
Purchases:
_________
Italian Lire, expiring 7/2/98 . . ................... .12,645,409 $7,192 $7,101 $(91)
New Zealand Dollars, expiring 7/2/98 . . ........... . 7,266 3,769 3,762 (7)
_____
TOTAL . ......................................................... . $(98)
_____
</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
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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,
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. (The $1,000 attendance fee and reimbursement of meeting expenses are also
borne pro rata by Dreyfus High Yield Strategies Fund.) 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.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $18,997 during the period ended June 30, 1998, from commissions earned
on sales of the Fund's shares.
(B) DISTRIBUTION AND SERVICE PLAN: Under the Distribution Plan (the "Plan")
adopted pursuant to Rule 12b-1 under the Act, Class A shares and Institutional
shares may pay annually up to .25 and .15 of 1%, respectively, of the value of
their average daily net assets 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 and Institutional shares. Under the Plan, Class B and
Class C shares pay the Distributor for distributing shares at an aggregate
annual rate of .75 of 1% 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 Class B and Class C shares pay
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 1%
of the value of the average daily net assets of Class B and Class C shares.
Class R shares bear no service or distribution fee. During the period January
16, 1998 to June 30, 1998, Class A, Class B, Class C and Institutional shares
were charged $715,033, $2,212, $351 and $58,144, respectively, pursuant to the
Plan. During the period January 16, 1998 to June 30, 1998, Class B and Class C
shares were charged $737 and $117, respectively, pursuant to the service plan.
Prior to January 16, 1998, under a prior Distribution Plan adopted pursuant to
Rule 12b-1 under the Act, the Fund paid 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 for
shareholder servicing activities and the Distributor for activities primarily
intended to result in the sale of Investor and Institutional shares. The
Restricted shares bore no distribution fee. During the period from January 1,
1998 to January 15, 1998, Investor shares and Institutional shares were charged
$47,430 and $3,906, respectively, pursuant to the prior Distribution Plan.
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Under its terms, the Plan and service fee 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, 1998 amounted to $324,677,040 and $367,521,414,
respectively.
At June 30, 1998, accumulated net unrealized appreciation on investments and
forward currency exchange contracts was $66,216,455, consisting of $96,233,580
gross unrealized appreciation and $30,017,125 gross unrealized depreciation.
At June 30, 1998, 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. During the period ended June
30, 1998, the Fund did not borrow under the Facility.
DREYFUS PREMIER 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. 312/712SA986
SEMI-ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
CORE VALUE FUND
- -------------------------------------------------------------------------------
JUNE 30, 1998
(reg.tm)
[reg.tm signature logo]
SEMI-ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
MANAGED INCOME
FUND
- -------------------------------------------------------------------------------
JUNE 30, 1998
(reg.tm)
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of the Dreyfus Premier Managed Income
Fund for its semi-annual reporting period ended June 30, 1998, as shown in the
following table:
<TABLE>
<CAPTION>
Annualized
Approximate Distribution Rate
Total Return* Income Dividends Per Share**
___________ _____________________ _________________
<S> <C> <C> <C>
Class A 4.16% $0.373 6.48%
Class B 3.77% $0.331 6.01%
Class C 3.76% $0.330 6.00%
Class R 4.39% $0.387 7.04%
Lehman Brothers
Aggregate Bond Index*** 3.93%
</TABLE>
THE ECONOMY
In recent testimony to Congress, Federal Reserve Board Chairman Alan Greenspan
proclaimed the economy to be " as impressive as any I have witnessed." Indeed,
the performance of the economy has been tremendous, with solid,
noninflationary economic growth and a robust rate of new job creation.
Accordingly, the unemployment rate hovers near its 28-year low. Not
surprisingly, consumers brim with confidence: new home sales were recently at
record levels, and retail sales have surged since January. The enthusiastic
spending of consumers has, so far, offset the adverse effects of the economic
problems in Asia. In fact, the financial crisis in the Far East has proved a
boon to consumers, since lower import prices have further subdued domestic
price pressures and helped keep interest rates low. Remarkably, despite the
strengthening economy since the beginning of this year, inflation has waned
further. With inflation under control and the economy just beginning
to experience a reduction in foreign demand, the Federal Reserve has been
reluctant to raise interest rates for fear of further roiling Asian financial
markets. The last increase in short-term rates came in March 1997 when the
Federal Reserve Board Open Market Committee (the policy-making arm of The Fed)
hiked the target rate for Federal Funds by one quarter of a percent to 5.5%.
Even with the booming job market, wage gains have had little
inflationary effect, since business spending in productivity-enhancing capital
equipment has been strong throughout the economic expansion. The one soft
spot in the job market has been in manufacturing: industrial production has
slowed--a clear sign that Asian economic woes are being felt here--and
inventories of domestic manufacturers have risen due to the reduction in
foreign demand. It is widely expected that the growing trade deficit will
retard second-quarter economic growth and possibly serve as a drag over the
foreseeable future. This reduction in foreign demand could further moderate
the rate of domestic production and consequently ease the demand for labor,
thus lessening inflationary pressure resulting from wage increases. Cheaper
imports have also weakened the pricingenvironment for U.S. manufacturers and,
in consequence, acted as an additional curb to inflation. All this has been
part of what Chairman Greenspan called our economy' s "virtuous cycle" where
even so-called crises have proven economically beneficial. As a further
example, the economic upheavals in Asia and Russia have caused nervous foreign
investors to seek refuge in the U.S. bond market, causinga demand surge that
has helped maintain our low interest rate environment. Yet we, along with
Chairman Greenspan, are skeptical that our economy has somehow moved "beyond
history," and we share his vigilance regarding signs of inflationary
imbalances.
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
Treasury bond yields declined steadily throughout the first half of 1998. By
June 30th, the 30-year bond was yielding 5.63%, its lowest level in decades.
Remarkably, with the exception of the 30-year bond, the Treasury yield curve was
trading below the Federal Funds rate of 5.5% by the end of the reporting period.
Such strength in the bond market was primarily the result of continued low
inflation, the Federal budget surplus and the surge in demand for high quality
debt securities in reaction to the Asian financial crisis.
At the beginning of the year, the corporate bond market was under pressure in
reaction to declining Asian bond prices and a flood of new bond financing
because of the low interest rate environment. By February, those supply
pressures had eased and the U.S. bond market rebounded. The recovery continued
in the second quarter, but with the worsening of Asian economic problems spreads
began to widen. The fear that the Asian crisis may affect U.S. corporate profits
resulted in a flight to quality, that is, a strong demand for U.S. government
securities. As a result, during the reporting period Government securities
outperformed the other sectors of the fixed-income market: corporates, mortgages
and asset-backed securities.
Importantly, the investment environment for most U.S. companies has remained
quite positive. Telecommunication and media companies benefited from strong
product demand and increased merger and takeover activity. During the reporting
period, the Fund benefited from upgrades in the credit ratings of Cliffs
Drilling, Niagara Mohawk Power and Jones Intercable.
In the mortgage sector, the low absolute level of rates caused spreads to
widen due to fear of higher prepayment rates. Accordingly, we underweighted
those securities selling at premiums as well as those of seasoned mortgage pools
because we believe that they have not offered investors the expected prepayment
protection. Conversely, we have overweighted current coupon and 15-year mortgage
securities. Supply issues caused commercial mortgage-backed securities to come
under pressure, as spreads widened 10 to 15 basis points compared to Treasuries.
We still believe that these securities offer excellent call protection and
attractive yields. The portfolio continues to hold significant home equity and
manufactured housing positions, as well as some floating rate securities that
act as short-term Treasury substitutes.
Looking ahead, we remain concerned about the effect of the Asia crisis on
fixed-income products, yet seek opportunities to purchase securities that have
been particularly hard hit by the turmoil in the Far East and represent
unusually attractive investment value. Our main focus continues to be security
selection, emphasizing relative valuations among the fixed-income sectors.
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, 1998
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.
**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 per share 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, unmanaged index of corporate, government and government agency
debt instruments, mortgage-backed securities and asset-backed securities.
<TABLE>
<CAPTION>
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes--98.0% Amount Value
- ------------------------------------------------------- _____________ ____________
<S> <C> <C>
Aircraft & Aerospace--1.5% BE Aerospace,
Sr. Sub. Notes, 9.875%, 2006 . . . . . . . . . . . $ 300,000 $ 321,000
Compass Aerospace,
Sr. Sub. Notes, 10.125%, 2005 . . . . . . . . . . 635,000 (a) 647,700
Goodrich (BF),
Notes, 7%, 2038 . . . . . . . . . . . . . . . . . 480,000 496,480
_____________
1,465,180
_____________
Asset-Backed--9.0% Access Financial Manufactured Housing
Contract Trust, Sr. Pass-Through Ctfs.,
Ser. 1995-1, Cl. A-2, 6.375%, 2021 . . . . . . . . 750,000 755,925
BA Master Credit Card Trust,
Asset Backed Ctfs.,
Ser. 1998-B, Cl. A, 5.77%, 2006 . . . . . . . . . 1,649,000 (b) 1,650,546
CIT RV Trust 1997-A,
Asset Backed Notes, Cl. A-4, 6.20%, 2006 . . . . . 1,241,000 1,245,437
Case Equipment Loan Trust,
Receivable-Backed Notes,
Ser. 1998-A, Cl. A-3, 5.74%, 2002 . . . . . . . . 483,000 482,710
Fleetwood Credit 1997-A Grantor Trust,
Asset Backed Ctfs.,
Cl. A, 6.64%, 2012 . . . . . . . . . . . . . . . . 277,663 280,955
MBNA Master Credit Card Trust,
Asset Backed Ctfs.,
Ser. 1996-J, Cl. A, 5.807%, 2006 . . . . . . . . . 944,000 (b) 946,620
Morgan Stanley Capital I,
Asset Backed Ctfs.:
Ser. 1997-C1, Cl. A1C, 7.63%, 2020 . . . . . . 978,000 1,052,343
Ser. 1998-WF1, Cl. A2, 6.55%, 2007 . . . . . . 381,000 388,084
Oakwood Mortgage Investors,
Asset Backed Ctfs.,
Ser. 1998-A, Cl. A3, 6.05%, 2028 . . . . . . . . . 370,000 370,636
TMS Home Equity Trust,
Asset Backed Ctfs.:
Ser. 1994-B, Cl. A-4, 7.60%, 2021 . . . . . . . 359,000 372,646
Ser. 1994-C, Cl. A-4, 7.80%, 2021 . . . . . . . 245,000 255,234
Ser. 1996-C, Cl. A-6, 7.69%, 2024 . . . . . . . 637,000 668,684
Ser. 1997-A, Cl. A-4, 6.89%, 2016 . . . . . . . 236,000 239,488
_____________
8,709,308
_____________
Automotive--1.7% Advanced Accessory Systems, LLC,
Sr. Sub. Notes, 9.75%, 2007 . . . . . . . . . . . 580,000 (a) 584,350
Delco Remy International,
Sr. Notes, 8.625%, 2007 . . . . . . . . . . . . . 325,000 333,125
Ford Motor,
Deb., 7.40%, 2046 . . . . . . . . . . . . . . . . 715,000 782,289
_____________
1,699,764
_____________
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _____________ ____________
Banking--3.2% Capital One Bank,
Medium-Term Bank Notes, 6.83%, 1999 . . . . . . . $ 375,000 $ 377,575
CitiCorp,
Global Notes, 8%, 2003 . . . . . . . . . . . . . . 205,000 220,352
First National Bank of Boston,
Sub. Notes, 7.375%, 2006 . . . . . . . . . . . . . 758,000 810,545
First Nationwide Holdings,
Sr. Sub. Notes, 10.625%, 2003 . . . . . . . . . . 395,000 438,450
First Security,
Sr. Notes, 6.875%, 2006 . . . . . . . . . . . . . 380,000 395,569
Great Western Financial Trust II,
Gtd. Capital Securities, Ser. A, 8.206%, 2027 . . 550,000 610,124
NationsBank,
Sub. Notes, 6.80%, 2028 . . . . . . . . . . . . . 285,000 292,310
_____________
3,144,925
_____________
Broadcasting & Media--2.1% Brill Media,
Sr. Notes, 7.50%, 2007 (Units) . . . . . . . . . . 540,000 (c) 507,600
Century Communications,
Sr. Notes, 9.50%, 2000 . . . . . . . . . . . . . . 115,000 121,325
Chancellor Media,
Sr. Sub. Notes, 9.375%, 2004 . . . . . . . . . . . 400,000 422,000
Cumulus Media,
Sr. Sub. Notes, 10.375%, 2008 . . . . . . . . . . 340,000 346,800
Jacor Communications,
Sr. Sub. Notes, 8.75%, 2007 . . . . . . . . . . . 120,000 125,400
Lin Television,
Sr. Sub. Notes, 8.375%, 2008 . . . . . . . . . . . 185,000 (a) 189,625
LodgeNet Entertainment,
Sr. Notes, 10.25%, 2006 . . . . . . . . . . . . . 300,000 310,500
_____________
2,023,250
_____________
Building Materials--.1% Associated Materials,
Sr. Sub. Notes, 9.25%, 2008 . . . . . . . . . . . 135,000 139,050
_____________
Chemicals--.6% Octel Developments PLC,
Sr. Notes, 10%, 2006 . . . . . . . . . . . . . . . 600,000 (a) 615,000
_____________
Commercial Mortgages--3.4% Asset Securitization,
Commercial Mortgage Pass-Through Ctfs.:
Ser. 1996-MD VI, Cl. A-1A, 6.72%, 2026 . . . . 242,253 246,833
Ser. 1996-MD VI, Cl. A-1C, 7.04%, 2026 . . . . 780,000 824,051
Ser. 1997-D IV, Cl. A-1D, 7.49%, 2029 . . . . . 693,000 754,362
First Union-Lehman Brothers Commercial Mortgage
Trust, Pass-Through Ctfs.,
Ser. 1997-C1, Cl. IO, 1.264%, 4/18/2027
(Interest Only Obligation) . . . . . . . . . . . . 8,979,097 (b,d) 650,985
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _____________ ____________
Commercial Mortgages (continued) Lehman Brothers Commercial
Conduit Mortgage Trust,
Commercial Mortgage Pass-Through Ctfs.,
Ser. 1998-C1, Cl. A2, 6.40%, 2007 . . . . . . . . $ 765,000 $ 771,455
_____________
3,247,686
_____________
Consumer--6.6% Brunswick,
Notes, 7.125%, 2027 . . . . . . . . . . . . . . . 635,000 668,763
Federated Department Stores,
Sr. Notes, 8.125%, 2002 . . . . . . . . . . . . . 125,000 134,009
Finlay Enterprises,
Gtd. Sr. Notes, 9%, 2008 . . . . . . . . . . . . . 335,000 337,512
Hilton Hotels,
Sr. Notes, 7.375%, 2002 . . . . . . . . . . . . . 152,000 154,441
KinderCare Learning Centers,
Sr. Sub. Notes, 9.50%, 2009 . . . . . . . . . . . 630,000 637,875
Lamar Advertising,
Gtd. Sr. Sub. Notes, 8.625%, 2007 . . . . . . . . 250,000 257,187
Muzak L.P./Capital,
Sr. Notes, 10%, 2003 . . . . . . . . . . . . . . . 400,000 416,000
Prime Succession Acquisition,
Sr. Sub. Notes, 10.75%, 2004 . . . . . . . . . . . 130,000 142,675
Protection One Alarm Monitoring,
Sr. Sub. Discount Notes, Zero Coupon 1998 . . . . 550,000 (e) 621,500
Rayovac,
Sr. Sub. Notes, 10.25%, 2006 . . . . . . . . . . . 195,000 213,525
Reliant Building Products,
Sr. Sub. Notes, 10.875%, 2004 . . . . . . . . . . 570,000 578,550
Revlon Worldwide,
Sr. Secured Discount Notes,
Zero Coupon, 2001 . . . . . . . . . . . . . . . . 990,000 772,200
Royal Caribbean Cruises,
Deb., 7.50%, 2027 . . . . . . . . . . . . . . . . 815,000 863,202
Standard Commercial Tobacco,
Gtd. Sr. Notes, 8.875%, 2005 . . . . . . . . . . . 580,000 571,300
_____________
6,368,739
_____________
Energy--2.5% Avon Energy Partners Holdings,
Sr. Notes, 6.73%, 2002 . . . . . . . . . . . . . . 950,000 (a) 969,835
Chesapeake Energy,
Sr. Notes, 7.875%, 2004 . . . . . . . . . . . . . 425,000 399,500
Coastal,
Sr. Notes, 8.125%, 2002 . . . . . . . . . . . . . 420,000 449,954
HS Resources,
Sr. Sub. Notes, 9.25%, 2006 . . . . . . . . . . . 205,000 207,562
Noble Drilling,
Sr. Notes, 9.125%, 2006 . . . . . . . . . . . . . 98,000 109,377
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _____________ ____________
Energy (continued) Norcen Energy Resources, Ltd.,
Deb., 7.375%, 2006 . . . . . . . . . . . . . . . . $ 165,000 $ 175,948
Oryx Energy,
Notes, 10%, 2001 . . . . . . . . . . . . . . . . . 80,000 86,753
_____________
2,398,929
_____________
Entertainment--1.6% KSL Recreation Group,
Sr. Sub. Notes, 10.25%, 2007 . . . . . . . . . . . 300,000 325,500
Silver Cinemas,
Sr. Sub. Notes, 10.50%, 2005 . . . . . . . . . . . 510,000 (a) 515,100
Six Flags Entertainment,
Gtd. Sr. Notes, 8.875%, 2006 . . . . . . . . . . . 375,000 383,906
United Artists Theatres,
Sr. Sub. Notes, 9.75%, 2008 . . . . . . . . . . . 300,000 (a) 300,750
_____________
1,525,256
_____________
Environmental--.9% USA Waste Services,
Sr. Notes, 7.125%, 2007 . . . . . . . . . . . . . 340,000 356,499
WMX Technologies:
Notes, 7.70%, 2002 . . . . . . . . . . . . . . . . 360,000 377,289
Notes, 6.625%, 2002 . . . . . . . . . . . . . . . 135,000 136,621
_____________
870,409
_____________
Finance--9.5% Dollar Financial Group,
Sr. Notes, 10.875%, 2006 . . . . . . . . . . . . . 300,000 324,000
Finova Capital,
Medium-Term Notes, 6.22%, 2000 . . . . . . . . . . 810,000 812,950
GMAC, Notes:
7.125%, 2001 . . . . . . . . . . . . . . . . . . . 115,000 118,446
6.875%, 2001 . . . . . . . . . . . . . . . . . . . 275,000 281,922
H.F. Ahmanson & Co.,
Medium-Term Notes, Ser. A, 7.65%, 2000 . . . . . . 630,000 649,062
Household Finance,
Medium-Term Notes,
Ser. A, 6.58%, 1999 . . . . . . . . . . . . . . . 510,000 511,976
Jefferson-Pilot Capital Trust A,
Gtd. Capital Securities,
8.14%, 2046 . . . . . . . . . . . . . . . . . . . 385,000 (a) 420,084
Jefferson-Pilot Capital Trust B,
Gtd. Capital Securities,
Ser. B, 8.285%, 2046 . . . . . . . . . . . . . . . 190,000 (a) 209,530
Lehman Brothers Holdings:
Notes, 6.25%, 2003 . . . . . . . . . . . . . . . . 1,390,000 1,392,503
Notes, 8.50%, 2007 . . . . . . . . . . . . . . . . 610,000 696,018
Sr. Sub. Notes, 6.125%, 2001 . . . . . . . . . . . 400,000 400,442
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _____________ ____________
Finance (continued) Paine Webber Group:
Medium-Term Sr. Notes, Ser. C:
7.81%, 2017 . . . . . . . . . . . . . . . . . . $ 435,000 $ 477,940
8.06%, 2017 . . . . . . . . . . . . . . . . . . 730,000 821,587
Notes, 7.625%, 2008 . . . . . . . . . . . . . . . 135,000 146,406
Sr. Notes, 7.39%, 2017 . . . . . . . . . . . . . . 675,000 712,315
Salomon,
Medium-Term Notes,
Ser. D, 7.59%, 2000 . . . . . . . . . . . . . . . 445,000 455,981
Sears Roebuck Acceptance,
Notes, 6%, 2003 . . . . . . . . . . . . . . . . . 780,000 779,234
_____________
9,210,396
_____________
Food & Beverage--1.4% Favorite Brands International,
Sr. Notes, 10.75%, 2006 . . . . . . . . . . . . . 600,000 (a) 609,000
Nabisco,
Notes, 6%, 2001 . . . . . . . . . . . . . . . . . 735,000 736,171
_____________
1,345,171
_____________
Foreign--2.9% Canadian Forest Oil, Ltd.,
Sr. Sub. Notes, 8.75%, 2007 . . . . . . . . . . . 525,000 515,830
China International Trust and Investment,
Bonds, 6.875%, 2003 . . . . . . . . . . . . . . . 1,000,000 892,880
Embotelladora Andina S.A.,
Notes, Ser. A, 7%, 2007 . . . . . . . . . . . . . 490,000 494,231
Rogers Communications,
Conv. Sub. Deb., 2%, 2005 . . . . . . . . . . . . 475,000 303,406
Sun Hung Kai Properties Finance Cayman Ltd.,
Gtd. Bonds, 5.625%, 1998 . . . . . . . . . . . . . 585,000 577,687
_____________
2,784,034
_____________
Health Care--.9% Global Health Sciences,
Sr. Notes, 11%, 2008 . . . . . . . . . . . . . . . 265,000 (a) 263,012
Loewen Group International,
Gtd. Sr. Notes, Ser. 3, 7.75%, 2001 . . . . . . . 250,000 257,566
Physician Sales & Service,
Sr. Sub. Notes, 8.50%, 2007 . . . . . . . . . . . 300,000 310,875
_____________
831,453
_____________
Industrial--9.6% Alliance Laundry Systems,
Sr. Sub. Notes, 9.625%, 2008 . . . . . . . . . . . 355,000 (a) 357,663
Eagle-Picher:
Holdings,
Discount Notes, Zero Coupon, 2003 . . . . . . . 600,000 (a,e) 349,500
Industries,
Sr. Sub. Notes, 9.375%, 2008 . . . . . . . . . 375,000 (a) 380,625
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _____________ ____________
Industrial (continued) ICN Pharmaceuticals,
Sr. Notes, Ser. B, 9.25%, 2005 . . . . . . . . . . $ 300,000 $ 317,250
Ingersoll-Rand,
Sr. Notes, 6.255%, 2001 . . . . . . . . . . . . . 875,000 880,389
Insilco,
Sr. Sub. Notes, 10.25%, 2007 . . . . . . . . . . . 610,000 640,500
Lockheed Martin,
Gtd. Deb., 7.75%, 2026 . . . . . . . . . . . . . . 930,000 1,062,240
Navistar International,
Sr. Notes, Ser. B, 7%, 2003 . . . . . . . . . . . 370,000 372,775
Numatics,
Sr. Sub. Notes, 9.625%, 2008 . . . . . . . . . . . 140,000 (a) 142,100
Pioneer,
Sr. Secured Notes, 9.25%, 2007 . . . . . . . . . . 230,000 228,850
Plastic Containers,
Sr. Secured Notes, 10%, 2006 . . . . . . . . . . . 325,000 347,750
Raytheon,
Notes, 5.95%, 2001 . . . . . . . . . . . . . . . . 600,000 600,197
Regional,
Sr. Notes, 10.50%, 2008 . . . . . . . . . . . . . 535,000 535,000
Sony,
Notes, 6.125%, 2003 . . . . . . . . . . . . . . . 130,000 130,406
Steel Heddle Manufacturing,
Sr. Sub. Notes, 10.625%, 2008 . . . . . . . . . . 600,000 (a) 603,000
Stena Line AB,
Sr. Notes, 10.625%, 2008 . . . . . . . . . . . . . 600,000 610,500
Tracor,
Sr. Sub. Notes, 8.50%, 2007 . . . . . . . . . . . 300,000 327,000
United International Holdings,
Sr. Discount Notes, Ser. B, Zero Coupon, 2003 . . 1,290,000 (e) 780,450
Wesco Distribution,
Sr. Sub. Notes, 9.125%, 2008 . . . . . . . . . . . 600,000 (a) 597,000
_____________
9,263,195
_____________
Insurance--4.1% Equitable Life Assurance Society of the U.S.,
Surplus Notes, 7%, 2028 . . . . . . . . . . . . . 415,000 430,753
Lincoln National,
Deb., 7.25%, 2005 . . . . . . . . . . . . . . . . 280,000 295,047
Safeco Capital Trust 1,
Gtd. Capital Securities, 8.072%, 2037 . . . . . . 750,000 804,945
Sun Life of Canada (U.S.) Capital Trust 1,
Gtd. Cum. Capital Securities, 8.526%, 2049 . . . . 1,265,000 (a) 1,426,437
Zurich Capital Trust I,
Gtd. Capital Securities, 8.376%, 2037 . . . . . . 950,000 (a) 1,058,462
_____________
4,015,644
_____________
Metals--1.5% Keystone Consolidated Industries,
Sr. Secured Notes, 9.625%, 2007 . . . . . . . . . 450,000 462,375
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _____________ ____________
Metals (continued) U.S. Can,
Sr. Sub. Notes, Ser. B, 10.125%, 2006 . . . . . . $ 350,000 $ 371,000
Wyman-Gordon,
Sr. Notes, 8%, 2007 . . . . . . . . . . . . . . . 560,000 571,200
_____________
1,404,575
_____________
Residential Mortgages--1.8% Amresco Reidential Securities Mortgage Loan
Trust,
Ser. 1998-2, Cl. A8, 5.811%, 2028 . . . . . . . . 1,380,000 (b) 1,380,000
Associates Manufactured Housing Trust,
Pass-Through Ctfs.,
Ser. 1997-2, Cl. A4, 6.475%, 2028 . . . . . . . . 316,000 321,506
_____________
1,701,506
_____________
Retailers--.6% Fedders North America,
Gtd. Sr. Sub. Notes, 9.375%, 2007 . . . . . . . . 600,000 597,000
_____________
Technology--1.6% Amphenol,
Sr. Sub. Notes, 9.875%, 2007 . . . . . . . . . . . 330,000 348,150
DynCorp,
Sr. Sub. Notes, 9.50%, 2007 . . . . . . . . . . . 520,000 538,200
Iron Mountain,
Sr. Sub. Notes, 10.125%, 2006 . . . . . . . . . . 600,000 660,000
_____________
1,546,350
_____________
Telecommunications--6.4% 21st Century Telecom Group,
Sr. Discount Notes, Zero Coupon, 2003 . . . . . . 1,040,000 (a,e) 587,600
Amazon.Com,
Sr. Discount Notes, Zero Coupon, 2003 . . . . . . 710,000 (a,e) 434,875
Comcast Cellular,
Sr. Notes, 9.50%, 2007 . . . . . . . . . . . . . . 450,000 471,375
Dobson Wireline,
Sr. Notes, 12.25%, 2008 . . . . . . . . . . . . . 700,000 (a) 682,500
GCI,
Sr. Notes, 9.75%, 2007 . . . . . . . . . . . . . . 400,000 422,000
Iridium LLC/Capital,
Sr. Notes, 11.25%, 2005 . . . . . . . . . . . . . 600,000 604,500
Level 3 Communications,
Sr. Notes, 9.125%, 2008 . . . . . . . . . . . . . 550,000 (a) 538,312
McLeod USA,
Sr. Notes, 9.25%, 2007 . . . . . . . . . . . . . . 350,000 364,875
Mediacom LLC/Capital,
Sr. Notes, 8.50%, 2008 . . . . . . . . . . . . . . 305,000 (a) 305,381
Nextel Communications,
Sr. Discount Notes, Zero Coupon, 2002 . . . . . . 1,150,000 (e) 753,250
Orion Network Systems,
Sr. Notes, 11.25%, 2007 (Units) . . . . . . . . . 550,000 (f) 610,500
Price Communications Wireless,
Sr. Notes, 9.125%, 2006 . . . . . . . . . . . . . 430,000 (a) 431,613
_____________
6,206,781
_____________
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1998 (UNAUDITED)
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _____________ ____________
Textiles--.9% Burlington Industries,
Deb., 7.25%, 2007 . . . . . . . . . . . . . . . . $ 875,000 $ 904,853
_____________
U.S. Government Agencies/
Mortgage Backed--21.8% Federal Home Loan Mortgage Corp.:
7%, 4/1/2013 . . . . . . . . . . . . . . . . . . . 965,000 (g) 983,692
9.50%, 7/25/2022 . . . . . . . . . . . . . . . . . 507,951 540,968
Federal National Mortgage Association:
6%, 8/1/2010-7/1/2013 . . . . . . . . . . . . . . 1,627,016 (h) 1,612,068
6.50%, 11/1/2003-7/1/2013 . . . . . . . . . . . . 2,850,298 (h) 2,875,391
7%, 8/1/2013-7/1/2023 . . . . . . . . . . . . . . 4,649,464 (h) 4,732,151
7.50%, 4/1/2005 . . . . . . . . . . . . . . . . . 36,703 36,704
7.536%, 6/1/2016 . . . . . . . . . . . . . . . . . 950,194 1,011,215
9%, 6/1/2026 . . . . . . . . . . . . . . . . . . . 188,436 199,624
Gtd. REMIC Pass-Through Cfts.,
Ser. 1996-M7, Cl. B,
6.865%, 6/17/2011 . . . . . . . . . . . . . . . 320,000 (b) 330,597
Government National Mortgage Association I:
7%, 7/1/2028 . . . . . . . . . . . . . . . . . . . 1,554,000 (g) 1,577,310
7.50%, 12/15/2023-7/1/2028 . . . . . . . . . . . . 6,105,615 (h) 6,277,966
8%, 7/15/2027 . . . . . . . . . . . . . . . . . . 924,510 959,467
_____________
21,137,153
_____________
U.S. Government--1.8% U.S. Treasury Notes:
5.875%, 11/15/1999 . . . . . . . . . . . . . . . . 402,000 403,930
5.375%, 1/31/2000 . . . . . . . . . . . . . . . . 1,065,000 1,062,774
6.375%, 8/15/2002 . . . . . . . . . . . . . . . . 85,000 87,608
U.S. Treasury Principal Strips,
Zero Coupon, 8/15/2022 . . . . . . . . . . . . . . 705,000 179,169
_____________
1,733,481
_____________
TOTAL BONDS AND NOTES
(cost $92,775,919) . . . . . . . . . . . . . . . . $ 94,889,088
_____________
_____________
Short-Term Investments--17.1%
- -------------------------------------------------------
Commercial Paper; General Electric Credit Corp.,
6.45%, 7/1/1998
(cost $16,542,000) . . . . . . . . . . . . . . . . $ 16,542,000 $ 16,542,000
_____________
TOTAL INVESTMENTS (cost $109,317,919). . . . . . . . . . . . . . . . . . . . . . . . . . . 115.1% $111,431,088
_______ _____________
LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . . (15.1%) $ (14,638,310)
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $ 96,792,778
_______ _____________
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, 1998,
these securities amounted to $13,219,054 or 13.7% of net assets.
(b) Variable rate security-interest rate subject to periodic change.
(c) With Appreciation Notes attached.
(d) Notional face amount shown.
(e)Zero Coupon until year shown at which time a stated coupon rate becomes
effective.
(f) With warrants to purchase common stock.
(g) Purchased on a forward commitment basis.
(h) Partially purchased on a forward commitment basis.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $109,317,919 $111,431,088
Receivable for investment securities sold . . . . . . . . 7,809,646
Interest receivable . . . . . . . . . . . . . . . . . . . 1,400,475
Receivable for shares of Beneficial Interest subscribed . . 62,994
_____________
120,704,203
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 68,613
Due to Distributor . . . . . . . . . . . . . . . . . . . 11,576
Cash overdraft due to Custodian . . . . . . . . . . . . . 598,299
Payable for investment securities purchased . . . . . . . 22,770,273
Payable for shares of Beneficial Interest redeemed . . . 462,664
_____________
23,911,425
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 96,792,778
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $101,101,950
Accumulated distributions in excess of
investment income--net . . . . . . . . . . . . . . . . (19,191)
Accumulated net realized gain (loss) on investments . . . (6,403,150)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3 . . . . . . . . . . . . . . . . 2,113,169
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 96,792,778
_____________
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
__________________________________________________________
Class A Class B Class C Class R
____________ ____________ ____________ ____________
<S> <C> <C> <C>
Net Assets . . . . . . . . . . . . . . . . . . . . . . $73,979,838 $9,389,175 $1,839,202 $11,584,563
Shares Outstanding . . . . . . . . . . . . . . . . . . 6,667,780 846,284 165,695 1,044,147
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . $11.10 $11.09 $11.10 $11.09
_______ _______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $3,562,137
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . . . . . $ 328,205
Distribution and service fees--Note 2(b) . . . . . . . . 139,157
Loan commitment fees--Note 4 . . . . . . . . . . . . . . 427
___________
Total Expenses . . . . . . . . . . . . . . . . . . . . 467,789
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,094,348
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments . . . . . . . . . $ 930,854
Net unrealized appreciation (depreciation) on investments . . (179,040)
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 751,814
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $3,846,162
___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997
________________ _________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,094,348 $ 6,300,051
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . 930,854 919,974
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . (179,040) 1,470,433
____________ ____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 3,846,162 8,690,458
____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,477,323) (4,956,835)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (246,514) (351,138)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39,288) (45,681)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (390,757) (906,054)
____________ ____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,153,882) (6,259,708)
____________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,924,555 9,538,076
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,462,277 3,306,776
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 959,255 704,099
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,497,605 4,188,843
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,947,903 3,927,349
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,750 165,637
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,570 20,653
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349,376 805,637
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,322,969) (19,780,145)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,141,514) (1,719,546)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (146,317) (160,373)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,374,354) (6,881,617)
____________ ____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . 4,289,137 (5,884,611)
____________ ____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . 4,981,417 (3,453,861)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,811,361 95,265,222
____________ ____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $96,792,778 $91,811,361
____________ ____________
UNDISTRIBUTED INVESTMENT INCOME (DISTRIBUTIONS IN EXCESS OF INVESTMENT INCOME)--NET. . $ (19,191) $ 40,343
____________ ____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
_____________________________________
Six Months Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997
________________ ________________
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443,800 885,615
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . 175,644 363,709
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (569,906) (1,837,421)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . 49,538 (588,097)
___________ ___________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311,985 306,677
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . 10,888 15,300
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (102,855) (159,287)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . 220,018 162,690
___________ ___________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,348 65,104
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . 1,133 1,907
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,212) (14,740)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . 74,269 52,271
___________ ___________
Class R
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,168 386,896
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . 31,503 74,624
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (214,400) (631,385)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . 42,271 (169,865)
___________ ___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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.
<TABLE>
<CAPTION>
Class A Shares
_________________________________________________________________
Six Months Ended
June 30, 1998 Year Ended December 31,
___________________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994(1,2) 1993(1,3)
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $11.01 $10.73 $11.08 $10.12 $11.38 $11.45
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .37 .73 .69 .75 .69(4) .78(4)
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . .09 .27 (.35) .96 (1.26) .83
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . .46 1.00 .34 1.71 (.57) 1.61
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.37) (.72) (.69) (.75) (.69) (.75)
Dividends from net realized gain on investments . . -- -- -- -- -- (.57)
Dividends in excess of net realized gain
on investments . . . . . . . . . . . . . . . -- -- -- -- -- (.36)
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . (.37) (.72) (.69) (.75) (.69) (1.68)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $11.10 $11.01 $10.73 $11.08 $10.12 $11.38
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(5) . . . . . . . . . . . . . 8.39%(6) 9.80% 3.42% 17.32% (5.14%) 14.54%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . .95%(6) .95% .95% .95% .98%(7) 1.14%(7)
Ratio of net investment income
to average net assets . . . . . . . . . . . . 6.68%(6) 6.74% 6.48% 7.08% 6.32% 6.55%
Portfolio Turnover Rate . . . . . . . . . . . . . 120.41%(8) 244.44% 251.66% 236.10% 270.00% 333.00%
Net Assets, end of period (000's Omitted) . . . . $73,980 $72,878 $77,305 $80,782 $79,548 $58,052
- -----------------------------
(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 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 began serving 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>
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)
<TABLE>
<CAPTION>
Class B Shares
___________________________________
____________
Six Months Ended
June 30, 1998 Year Ended December 31,
___________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995
________________ ______ ______ ______
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . $11.01 $10.73 $11.08 $10.12
______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . .32 .65 .61 .67
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . . . . .09 .27 (.35) .96
______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . . . . .41 .92 .26 1.63
______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . (.33) (.64) (.61) (.67)
______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . . . . $11.09 $11.01 $10.73 $11.08
______ ______ ______ ______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . . . . 7.60%(3) 8.97% 2.54% 16.55%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . 1.70%(3) 1.70% 1.70% 1.69%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . . . . 5.86%(3) 5.98% 5.77% 6.41%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . 120.41%(4) 244.44% 251.66% 236.10%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . $9,389 $6,896 $4,973 $2,236
- -----------------------------
(1) The Fund commenced offering Class B shares on December 19, 1994. Financial
Highlights for the period ended December 31, 1994 for Class B shares are
not present because no shares had been issued to the public as of that
date.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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)
<TABLE>
<CAPTION>
Class C Shares
_______________________________________________
Six Months Ended
June 30, 1998 Year Ended December 31,
___________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995
________________ ______ ______ ______
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . $11.02 $10.73 $11.08 $10.12
______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . .32 .64 .61 .67
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . . . . .09 .29 (.35) .96
______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . . . . .41 .93 .26 1.63
______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . (.33) (.64) (.61) (.67)
______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . . . . $11.10 $11.02 $10.73 $11.08
______ ______ ______ ______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . . . . 7.58%(3) 8.96% 2.49% 16.54%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . 1.70%(3) 1.70% 1.68% 1.66%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . . . . 5.72%(3) 5.95% 5.69% 6.03%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . 120.41%(4) 244.44% 251.66% 236.10%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . $1,839 $1,007 $ 420 $67
- -----------------------------
(1) The Fund commenced offering Class C shares on December 19, 1994. Financial Highlights for the period ended December 31, 1994
for Class C shares are not present because no shares had been issued to the public as of that date.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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.
<TABLE>
<CAPTION>
Class R Shares
________________________________________________________________________
Six Months Ended Period Ended
June 30, 1998 Year Ended December 31, December 31,
______________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994(1,2) 1993(1,3)
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . $11.01 $10.73 $11.08 $10.12 $11.38 $11.62
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . .37 .76 .72 .78 .72(4) .74(4)
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . .10 .27 (.35) .96 (1.26) .67
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . .47 1.03 .37 1.74 (.54) 1.41
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . (.39) (.75) (.72) (.78) (.72) (.71)
Dividends from net realized gain
on investments . . . . . . . . . . -- -- -- -- -- (.61)
Dividends in excess of net realized
gain on investments . . . . . . . . -- -- -- -- -- (.33)
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . (.39) (.75) (.72) (.78) (.72) (1.65)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . $11.09 $11.01 $10.73 $11.08 $10.12 $11.38
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(5) . . . . . . . . 8.85%(6) 9.97% 3.58% 17.71% (4.88%) 12.59%(6)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . .70%(6) .70% .70% .70% .71%(7) .83%(6,7)
Ratio of net investment income
to average net assets . . . . . . 6.76%(6) 6.99% 6.74% 7.31% 6.59% 6.86%(6)
Portfolio Turnover Rate . . . . . . . . 120.41%(8) 244.44% 251.66% 236.10% 270.00% 333.00%(8)
Net Assets, end of period (000's Omitted) $11,585 $11,031 $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 began serving 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 separate diversified
series of The Dreyfus/Laurel Funds Trust (the "Trust") which is registered under
the Investment Company Act of 1940 ("Act") as an 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").
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 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 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 other than U.S. Treasury Bills) 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.
Short-term investments, excluding U.S. Treasury Bills, 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 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.
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Internal Revenue Code, and to make distributions of taxable income
sufficient to relieve it from substantially all Federal income and excise taxes
The Fund has an unused capital loss carryover of approximately $7,306,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1997. The
carryover does not include net realized securities losses from November 1, 1997
through December 31, 1997 which are treated, for Federal income tax purposes, as
arising in fiscal 1998. If not applied, $5,560,000 of the carryover expires in
fiscal 2002, $539,000 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. (The $1,000 attendance fee and reimbursement of meeting expenses are also
borne pro rata by Dreyfus High Yield Strategies Fund). 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: Under the Distribution plan (the "Plan")
adopted pursuant to Rule 12b-1 under the Act, 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 fee or service fee. During the period ended June 30, 1998, Class A,
Class B and Class C shares were charged $91,336, $30,897 and $4,969
respectively, pursuant to the Plan and Class B and Class C shares were charged
$10,299 and $1,656, respectively, pursuant to the service plan.
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.
DREYFUS PREMIER MANAGED INCOME FUND
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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,
1998 amounted to $111,741,332 and $111,663,188, respectively.
At June 30, 1998, accumulated net unrealized appreciation on investments was
$2,113,169, consisting of $2,322,814 gross unrealized appreciation and $209,645
gross unrealized depreciation.
At June 30, 1998, 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. During the period ended June
30, 1998, 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. 349/649SA986
