YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
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 12-month period ended December 31, 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 -0.10% $1.140 9.62%
Class B Shares -0.61% $1.079 9.52%
Class C Shares -0.93% $1.048 9.25%
Class R Shares -0.14% $1.170 10.34%
Merrill Lynch High Yield
Master II Index*** -2.95%
</TABLE>
ECONOMIC REVIEW
During 1998, the main regions of the world had very different economic
fundamentals. The U.S. entered the year with a strong economy and 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
early in the year, but world economic weakness generated such powerful
anti-inflation forces that the Fed acted instead to ease credit beginning in
September. After many years of subpar economic growth, continental Europe moved
into a sustained economic expansion. The overall European economy benefited as
interest rates in peripheral countries such as Spain and Italy fell, approaching
the lower levels established by Germany, on the eve of currency unification.
Unlike the U.S., Europe has substantial excess capacity of productive plant and
labor. In Asia, weak economies were pervasive as a result of a financial crisis.
The Latin American economies weakened in turn as the financial stresses spread
throughout that region. On balance, there was a substantial weakening of the
world economy over the course of 1998 moderated mainly by the American
consumer's role as "spender of last resort."
A main influence on the U.S. economy during the year was the foreign
financial crisis and consequent cooling of the world economy. The positive
effects hit first. Actual inflation and expected inflation dropped, causing a
decline in long-term Treasury bond yields and mortgage rates. This caused a boom
in housing. The fall in inflation left more of the growth in consumer income
with which to buy goods and services. Thus, consumers benefited from a
combination of good growth in income after inflation, a strong labor market, and
increases in the prices of assets they owned, including bonds, stocks and real
estate. In a sense, 1998 was a year of disinflationary boom in the U.S., as
above-trend economic growth coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long-Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis in 1998 from Japan,
emerging market countries and overextended financial institutions. Excess
capacity persists in many worldwide industries after years of high capital
spending followed by the onset of a worldwide weakening in demand. Fortunately,
the U.S. has led the world in making the transition from the old manufacturing
industries to the new growth industries, such as biotechnology, software,
computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relaxed.
MARKET OVERVIEW
The high-yield market had an extremely volatile year in 1998. The Merrill
Lynch High Yield Master II Index was up over 5% on the year late in July as the
market rallied and fears that the 1997 Asian crisis would expand subsided.
However, the Russian financial crisis triggered a global flight to quality that
roiled the equity, high-yield, and emerging markets. The Index sank to its
lowest point in mid-October at -3.7% on the year, and finished 1998 up only
approximately 3% as the markets began their recovery.
Spreads over treasuries for all the major high-yield indices widened in
October to levels not seen since the high-yield market meltdown in 1990. At that
time the high-yield market suffered several strong and simultaneous shocks: 1)
the demise of Drexel Burnham Lambert, the predominant market maker of high-yield
securities; 2) the incarceration of Michael Milkin, frequently credited as the
founder of the modern high-yield market; 3) bankruptcy rates around 10%; and 4)
regulatory changes that forced insurance funds and savings and loan
institutions, the largest holders of high-yield debt at the time, to unload
their high-yield assets.
What is significant about this level of volatility in the high-yield market
in 1998 is that it is largely the result of external events, financial crises in
Russia and Southeast Asia, rather than domestic credit deterioration that is
both fundamental and widespread. In our opinion, there was not a surge in
bankruptcy rates or a slew of credit rating downgrades to justify the depths to
which the high-yield market sank in October. It could be said that the market
was trading too rich last Spring, but then it could also be said that the market
was too cheap in the Fall.
There was a rebound in November as money flowed into high-yield mutual funds.
It was followed by a slight early December correction as too many issuers tried
to complete bond offerings before the holiday break. We think that the balance
between cash inflow and new issue supply should continue to dominate the high
yield market. In our opinion, the two main concerns will be the potential for
too much supply and for future worldwide economic shocks.
PORTFOLIO OVERVIEW
The Fund' s focus on high-yield assets with relatively short effective
maturities--inside three years on average--insulated it somewhat from the recent
high-yield market gyrations.
The major factors that helped reduce the Fund's total return were the Fund's
average portfolio credit rating of single B and its holdings of yield-to-call
bonds. Essentially all high-yield bonds suffered from investors' flight to
quality in the third quarter of 1998. The higher-rated BB bonds tended to fare
better than lower-rated, high-yield bonds, however. They were also the first to
rebound in November. In addition, bonds that the market had priced with the
expectation of a call in the near future suffered from lower expectations of
credit availability.
Two factors that helped the Fund were its relatively short average effective
maturity and low exposure to emerging market volatility. Emerging market bonds
comprised less than 3% of total assets at the end of the reporting period, and
that is not expected to increase at this time.
While the high-yield market seems to have stabilized at the end of 1998, its
sharp reaction to economic affairs in Russia revealed its underlying
skittishness. Further economic upsets in other emerging markets are possible and
their effects would be difficult to forecast at this time. High-yield investors
concerned about worldwide economic stability can consider higher-rated credits
or those with short effective maturities as defensive investments.
Sincerely,
[Roger King signature]
Roger King
Portfolio Manager
January 22, 1999
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 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. The Index does not take into account
charges, fees and other expenses.
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND DECEMBER 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER LIMITED
TERM HIGH INCOME FUND CLASS A SHARES, CLASS B SHARES, CLASS C SHARES AND CLASS R
SHARES AND THE MERRILL LYNCH HIGH YIELD MASTER II INDEX
$11,176
Merrill Lynch High Yield Master II Index*
Dollars
$10,559
Dreyfus Premier Limited Term High Income Fund (Class R Shares)
$10,399
Dreyfus Premier Limited Term High Income Fund (Class C Shares)
$10,078
Dreyfus Premier Limited Term High Income Fund (Class B Shares)
$10,053
<TABLE>
<CAPTION>
Dreyfus Premier Limited Term High Income Fund (Class A Shares)
*Source: Merrill Lynch, Pierce, Fenner and Smith Inc.
Average Annual Total Returns
- -----------------------------------------------------------------------------
Class A Shares Class B Shares
_______________________________________________________ _______________________
__________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 12/31/98 Sales Charge Sales Charge (4.5%) Period Ended 12/31/98 Redemption Redemption*
___________________ ____________ ________________ _________________ __________ _________________
<S> <C> <C> <C> <C> <C>
1 Year -0.10% -4.62% 1 Year -0.61% -4.24%
From Inception (6/2/97) 3.30 0.33 From Inception (6/2/97) 2.77 0.49%
Class C Shares Class R Shares
_______________________________________________________ _________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 12/31/98 No Redemption Redemption** Period Ended 12/31/98
___________________ ____________ __________________ _________________
1 Year -0.93% -1.84% 1 Year 0.14%
From Inception (6/2/97) 2.51 2.51 From Inception (6/2/97) 3.50
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the Class A, Class
B, Class C and Class R shares of Dreyfus Premier Limited Term High Income Fund
on 6/2/97 (Inception Date) to a $10,000 investment made in the Merrill Lynch
High Yield Master II Index on that date. For comparative purposes, the value of
the index on 5/31/97 is used as the beginning value on 6/2/97. All dividends and
capital gain distributions are reinvested.
The Fund seeks to achieve its objective by investing in lower rated fixed-income
securities and by maintaining an effective average portfolio maturity of 4 years
or less and an effective average duration of 3.5 years or less. The Fund's
performance shown in the line graph takes into account the maximum initial sales
charge on Class A shares, the maximum contingent deferred sales charge on Class
B and Class C shares and all other applicable fees and expenses on all classes.
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. Both interest and price changes are calculated daily based on an
accrued schedule and trader pricing. The Index does not take into account
charges, fees and other expenses. Further information relating to Fund
performance, including expense reimbursements, if applicable, is contained in
the Financial Highlights section of the Prospectus and elsewhere in this report
*The maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<TABLE>
<CAPTION>
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998
Principal
Bonds and Notes--94.4% Amount Value
- ------------------------------------------------------- _______________ _______________
Aircraft & Aerospace--4.0% AM General, Ser. B,
<S> <C> <C>
Sr. Notes, 12.875%, 2002 . . . . . . . . . . . . . $..13,000,000 $ 11,765,000
Aircraft Lease Portfolio Securitisation 96-1
Pass Through Trust, Ctfs.,
Cl. D, 12.75%, 2006 . . . . . . . . . . . . . . . 906,620 874,888
American Pacific,
Sr. Notes, 9.25%, 2005 . . . . . . . . . . . . . . 7,000,000 6,965,000
Burke Industries,
Sr. Notes, 9.719%, 2007 . . . . . . . . . . . . . 7,000,000 (a) 6,510,000
Level 3 Communications,
Sr. Sub. Notes, 10.375%, 2007 . . . . . . . . . . 8,000,000 8,820,000
Sequa,
Sr. Sub. Notes, 9.375%, 2003 . . . . . . . . . . . 1,500,000 1,546,875
_____________
36,481,763
_____________
Automotive--2.8% Aetna Industries,
Sr. Notes, 11.875%, 2006 . . . . . . . . . . . . . 11,000,000 11,605,000
Hayes Lemmerz International,
Sr. Sub. Notes, 11%, 2006 . . . . . . . . . . . . 7,000,000 7,805,000
Penda, Ser. B,
Sr. Notes, 10.75%, 2004 . . . . . . . . . . . . . 5,913,000 5,883,435
_____________
25,293,435
_____________
Banking--.2% Republic National Bank of New York,
Deb., 9.65%, 2003 . . . . . . . . . . . . . . . . 2,000,000 (b) 1,483,982
_____________
Broadcasting--3.9% Azteca Holdings, S.A. de C.V.,
Sr. Secured Notes, 11%, 2002 . . . . . . . . . . . 5,500,000 4,675,000
Capstar Broadcasting Partners,
Sr. Discount Notes, Zero Coupon, 2002 . . . . . . 1,750,000 (c) 1,426,250
Lin Holdings,
Sr. Discount Notes, Zero Coupon, 2003 . . . . . . 12,000,000 (c) 8,460,000
Paxson Communications,
Sr. Sub. Notes, 11.625%, 2002 . . . . . . . . . . 8,000,000 8,240,000
Scandinavian Broadcasting System,
Conv. Sub. Notes., 7%, 2004 . . . . . . . . . . . 4,700,000 (b) 4,993,750
Spanish Broadcasting,
Sr. Notes, 12.5%, 2002 . . . . . . . . . . . . . . 5,300,000 5,750,500
Univision Network Holding,
Sub. Notes, 7%, 2002 . . . . . . . . . . . . . . . 2,550,575 1,837,500
_____________
35,383,000
_____________
Cable Television--9.1% Diamond Cable Communications,
Sr. Discount Notes, Zero coupon, 2000 . . . . . . 9,950,000 (c) 8,283,375
Digital Television Service/Capital, Ser. B,
Sr. Sub. Notes, 12.5%, 2007 . . . . . . . . . . . 14,500,000 15,877,500
EchoStar Communications,
Sr. Discount Notes, Zero Coupon, 1999 . . . . . . 4,000,000 (c) 4,140,000
EchoStar DBS,
Sr. Notes, 12.5%, 2002 . . . . . . . . . . . . . . 5,500,000 6,352,500
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _______________ _______________
Cable Television (continued) EchoStar Satellite Broadcast,
Sr. Discount Notes, Zero Coupon, 2000 . . . . . . $....6,250,000 (c) $ 6,218,750
Galaxy Telecom,
Sr. Sub. Notes, 12.375%, 2005 . . . . . . . . . . 10,400,000 11,596,000
Kabelmedia Holdings GMBH,
Sr. Discount Notes, Zero Coupon, 2001 . . . . . . 6,000,000 (c) 5,070,000
NTL, Senior Discount Notes:
Zero Coupon, 2000 . . . . . . . . . . . . . . . . 7,000,000 (c) 5,950,000
Ser. A, Zero Coupon, 2000 . . . . . . . . . . . . 5,500,000 (c) 5,005,000
Ser. B, Zero Coupon, 2001 . . . . . . . . . . . . 2,364,000 (c) 1,950,300
Pegasus Media & Communications, Ser. B,
Sr. Sub. Notes, 12.5%, 2005 . . . . . . . . . . . 10,000,000 11,050,000
_____________
81,493,425
_____________
Casinos & Gaming--1.4% Hollywood Casino,
Sr. Secured Notes, 12.75%, 2003 . . . . . . . . . 7,176,000 7,642,440
Majestic Star Casino,
Sr. Exchange Secured Notes, 12.75%, 2003 . . . . . 3,500,000 3,648,750
Waterford Gaming/Finance,
Sr. Notes, 12.75%, 2003 . . . . . . . . . . . . . 1,419,000 1,560,900
_____________
12,852,090
_____________
Commercial Mortgage
Pass-Through Ctfs.--.7% Nomura Depositor Trust:
Ser. 1998 ST I, Cl. B-2, 9.797%, 2003 . . . . . . 5,000,000 (a,b) 4,336,719
Ser. 1998 ST IA, Cl. B-2A, 9.797%, 2003 . . . . . 2,000,000 (a,b) 1,734,688
_____________
6,071,407
_____________
Construction--.6% ICF Kaiser International:
Sr. Sub. Notes, 13%, 2003 . . . . . . . . . . . . 9,550,000 4,822,750
Sr. Sub. Notes, 13%, 2003 (Units) . . . . . . . . 1,500,000 (d) 712,500
_____________
5,535,250
_____________
Consumer--6.4% BPC Holding, Ser. B,
Sr. Secured Notes, 12.5%, 2006 . . . . . . . . . . 4,998,000 5,222,910
Graham Packaging/GPC Capital, Ser. B,
Floating Interest Rate Sub. Term
Securities, 9.375%, 2008 . . . . . . . . . . . . . 1,500,000 (a) 1,477,500
Hosiery Corp. of America,
Sr. Sub. Exchange Notes, 13.75%, 2002 . . . . . . 12,000,000 12,360,000
Loewen Group,
Putable Asset Trust Securities, 6.7%, 1999 . . . . 30,250,000 (b) 29,191,250
Sharp Do Brazil,
Medium-Term Notes, 9.625%, 2000 . . . . . . . . . 3,500,000 (e) 1,710,625
Sweetheart Cup,
Gtd. Sr. Notes, 9.625%, 2000 . . . . . . . . . . . 9,000,000 8,145,000
_____________
58,107,285
_____________
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _______________ _______________
Energy--3.1% Clark USA, Ser. B,
Sr. Notes, 10.875%, 2005 . . . . . . . . . . . . . $....5,386,000 $ 4,982,050
DeepTech International,
Sr. Secured Notes, 11%, 2000 . . . . . . . . . . . 3,000,000 (b) 3,037,500
Gerrity Oil & Gas,
Sr. Sub. Notes, 11.75%, 2004 . . . . . . . . . . . 2,960,000 3,004,400
Kelly Oil & Gas,
Conv. Sub. Notes, 7.875%, 1999 . . . . . . . . . . 4,996,000 4,858,610
Rutherford-Moran Oil,
Sr. Sub. Notes, 10.75%, 2004 . . . . . . . . . . . 9,940,000 11,778,900
_____________
27,661,460
_____________
Entertainment--5.7% American Skiing, Ser. B,
Sr. Sub. Notes, 12%, 2006 . . . . . . . . . . . . 20,915,000 21,856,175
Discovery Zone:
Sr. Secured Notes, 13.5%, 2002 . . . . . . . . . . 4,000,000 1,020,000
Sr. Secured Notes, 13.5%, 2002 (Units) . . . . . . 2,200,000 (d) 2,211,000
Intermedia Communications,
Sr. Discount Notes, Zero Coupon, 2001 . . . . . . 15,000,000 (c) 11,812,500
Premier Parks, Ser. A,
Sr. Notes, 12%, 2003 . . . . . . . . . . . . . . . 1,500,000 1,638,750
Six Flags Theme Parks, Ser. A,
Sr. Sub. Notes, 12.25%, 2005 . . . . . . . . . . . 5,000,000 5,575,000
United Artists Theatres, Ser. B,
Floating Rate Sr. Sub. Notes, 9.75%, 2007 . . . . 8,000,000 (a) 7,400,000
_____________
51,513,425
_____________
Financial/Asset-Backed--.2% Commercial Loan Funding Trust I,
Floating Rate Sub. Notes,
Cl. D1, 18%, 2005 . . . . . . . . . . . . . . . . 4,500,000 (f) 1,350,000
Imperial Credit Capital Trust I, Ser. A,
Remarketed Par Securities, 10.25%, 2002 . . . . . 500,000 380,223
_____________
1,730,223
_____________
Food & Beverages--5.1% Chiquita Brands International:
Conv. Sub. Notes, 7%, 2001 . . . . . . . . . . . . 5,500,000 (b) 5,005,000
Conv. Sub. Notes, 7%, 2001 . . . . . . . . . . . . 2,450,000 2,229,500
Envirodyne Industries:
Ser. B, Sr. Secured Notes, 12%, 2000 . . . . . . . 905,000 909,525
Sr. Notes, 10.25%, 2001 . . . . . . . . . . . . . 14,000,000 11,270,000
Pilgrims Pride,
Sr. Notes, 10.875%, 2003 . . . . . . . . . . . . . 2,000,000 2,070,000
RC/Arbys,
Sr. Secured Notes, 9.75%, 2000 . . . . . . . . . . 2,485,000 2,447,725
Sun World International, Ser. B,
First Mortgage, 11.25%, 2004 . . . . . . . . . . . 21,000,000 22,365,000
_____________
46,296,750
_____________
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _______________ _______________
Forest Products--7.9% Maxxam Group Holdings,
Sr. Secured Notes, 12%, 2003 . . . . . . . . . . . $..45,115,000 $ 45,340,575
Stone Container:
Sr. Notes, 9.875%, 2001 . . . . . . . . . . . . . 3,500,000 3,561,250
Sr. Sub. Deb., 12.25%, 2002 (UNITS) . . . . . . . 10,925,000 (d) 11,006,937
Sr. Sub. Notes, 11%, 1999 . . . . . . . . . . . . 500,000 510,000
Stone Container Finance,
Gtd. Sr. Notes, 11.5%, 2006 . . . . . . . . . . . 10,000,000 (b) 10,450,000
_____________
70,868,762
_____________
Healthcare--.3% Eye Care Centers of America,
Floating Interest Rate Sub.
Term Securities, 8.95%, 2008 . . . . . . . . . . . 3,000,000 (b) 2,842,500
_____________
Industrial--4.7% Anacomp, Ser. C,
Sr. Notes, 10.875%, 2004 . . . . . . . . . . . . . 5,000,000 5,175,000
Applied Extrusion Technology, Ser. B,
Sr. Notes, 11.5%, 2002 . . . . . . . . . . . . . . 11,380,000 11,920,550
HCC Industries,
Gtd. Sr. Sub. Notes, 10.75%, 2007 . . . . . . . . 6,360,000 6,137,400
Interlake,
Sr. Sub. Deb. 12.125%, 2002 . . . . . . . . . . . 10,000,000 10,250,000
Petro Stopping Centers/Financial,
Sr. Notes, 10.5%, 2007 . . . . . . . . . . . . . . 7,800,000 8,190,000
Vicap, S.A. de C.V.,
Gtd. Sr. Notes, 10.25%, 2002 . . . . . . . . . . . 500,000 467,500
_____________
42,140,450
_____________
Metals--5.2% Kaiser Aluminum & Chemical,
Sr. Notes, 9.875%, 2002 . . . . . . . . . . . . . 5,000,000 4,975,000
Northwestern Steel & Wire,
Sr. Notes, 9.5%, 2001 . . . . . . . . . . . . . . 5,000,000 3,025,000
Renco Metals,
Sr. Notes, 11.5%, 2003 . . . . . . . . . . . . . . 13,495,000 13,967,325
Republic Engineered Steels,
First Mortgage, 9.875%, 2001 . . . . . . . . . . . 6,290,000 6,462,975
Russel Metals,
Sr. Notes, 10.25%, 2000 . . . . . . . . . . . . . 18,500,000 18,407,500
_____________
46,837,800
_____________
Other--1.2% Pierce Leahy,
Sr. Notes, 11.125%, 2006 . . . . . . . . . . . . . 10,000,000 11,100,000
_____________
Publishing--1.4% American Media Operations,
Sr. Sub. Notes, 11.625%, 2004 . . . . . . . . . . 7,350,000 7,533,750
Day International Group, Ser. B,
Sr. Notes, 11.125%, 2005 . . . . . . . . . . . . . 5,200,000 5,512,000
_____________
13,045,750
_____________
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _______________ _______________
Retail--3.6% Cafateria Operators
(Gtd. by Furrs/Bishops Specialty Group),
Sr. Secured Notes, 12%, 2001 . . . . . . . . . . . $....7,481,649 $ 7,668,691
Corporate Express,
Conv. Notes, 4.5%, 2000 . . . . . . . . . . . . . 20,590,000 17,810,350
Michaels Stores,
Conv. Sr. Notes, 6.75%, 2003 . . . . . . . . . . . 7,750,000 6,897,500
_____________
32,376,541
_____________
Shipping--.6% Gearbulk Holding,
Sr. Notes, 11.25%, 2004 . . . . . . . . . . . . . 2,000,000 2,120,000
Stena AB,
Sr. Notes, 10.5%, 2005 . . . . . . . . . . . . . . 3,500,000 3,631,250
_____________
5,751,250
_____________
Technology--2.6% LAM Research,
Conv. Notes, 5%, 2002 . . . . . . . . . . . . . . 6,750,000 5,332,500
Samsung Electronics of America,
Gtd. Notes, 9.75%, 2003 . . . . . . . . . . . . . 3,000,000 (b) 2,895,000
The Learning Company,
Conv. Sr. Notes, 5.5%, 2000 . . . . . . . . . . . 10,065,000 9,976,931
Viasystems,
Sr. Sub. Notes, 9.75%, 2007 . . . . . . . . . . . 5,750,000 5,405,000
_____________
23,609,431
_____________
Telecommunications/Carriers--7.5% Call-Net Enterprises,
Sr. Discount Notes, Zero Coupon, 1999 . . . . . . 11,600,000 (c) 11,310,000
GST USA,
Sr. Discount Notes, Zero Coupon, 2000 . . . . . . 2,500,000 (c) 1,806,250
Hermes Europe Railtel,
Sr. Notes, 11.5%, 2007 . . . . . . . . . . . . . . 14,750,000 15,708,750
Intelcom Group (USA),
Gtd. Secured Discount Notes,
Zero Coupon, 2001 . . . . . . . . . . . . . . . . 1,770,000 (c) 1,327,500
MJD Communications,
Floating Rate Notes, 9.16%, 2008 . . . . . . . . . 9,000,000 (a) 8,775,000
Mobile Telecommunications Technology,
Sr. Notes, 13.5%, 2002 . . . . . . . . . . . . . . 4,800,000 5,460,000
NEXTEL Communications,
Sr. Notes, Zero Coupon, 2000 . . . . . . . . . . . 6,000,000 (c) 5,850,000
Qwest Communications International, Ser. B,
Sr. Notes, 10.875%, 2007 . . . . . . . . . . . . . 8,000,000 9,360,000
Worldport International,
Sr. Notes, 11.688%, 1999 . . . . . . . . . . . . . 10,000,000 (a,b) 8,000,000
_____________
67,597,500
_____________
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _______________ _______________
Textiles--.7% Sassco Fashions,
Sr. Notes, 12.75%, 2004 . . . . . . . . . . . . . $....5,700,000 $ 5,671,500
Texfi Industries,
Sr. Sub. Deb., 8.75%, 1999 . . . . . . . . . . . . 5,100,000 484,500
_____________
6,156,000
_____________
Transportation--3.7% Atlantic Coast Airlines,
Gtd. Pass-Through Ctfs.,
Ser. 1977-1D, 7.97%, 2000 . . . . . . . . . . . . 1,540,219 (b) 1,547,920
Eletson Holdings,
First Pfd. Ship Mortgage Notes, 9.25%, 2003 . . . 1,750,000 1,671,250
MTL,
Floating Interest Rate Sub. Term
Securities, 10.5%, 2006 . . . . . . . . . . . . . 5,000,000 (a,b) 4,850,000
Midway Airlines,
Pass-Through Ctfs.,
Ser. 1998-1, Cl. D, 8.86%, 2003 . . . . . . . . . 4,502,000 (b) 4,513,255
Moran Transportation, Ser. B,
First Pfd. Ship Mortgage Notes, 11.75%, 2004 . . . 8,285,000 8,906,375
USAir,
Ser. 1993-A, Cl. A-2,
Pass-Through Ctfs., 9.625%, 2003 . . . . . . . . . 3,855,000 4,173,180
Union Pacific,
Sub. Deb., 5.5%, 2033 . . . . . . . . . . . . . . 4,348,000 3,711,941
ValuJet,
Sr. Notes, 10.25%, 2001 . . . . . . . . . . . . . 7,675,000 4,259,625
_____________
33,633,546
_____________
Utilities--1.0% Hidroelectrica Alicura,
Deb., 8.375%, 1999 . . . . . . . . . . . . . . . . 3,000,000 (b) 2,970,000
Hidroelectrica Piedra Aquila,
Medium-Term Notes, 10.625%, 2001 . . . . . . . . . 7,000,000 5,687,500
_____________
8,657,500
_____________
Wireless Communications--10.8% Cencall Communications,
Sr. Discount Notes, Zero Coupon, 1999 . . . . . . 3,000,000 (c) 2,955,000
Clearnet Communications,
Sr. Discount Notes, Zero Coupon, 2000 . . . . . . 14,100,000 (c) 12,126,000
Comunicacion Celular,
Sr. Discount Notes, Zero Coupon, 2000 . . . . . . 13,250,000 (c) 8,711,875
Dial Call Communications,
Sr. Discount Notes, 10.25%, 2005 . . . . . . . . . 3,000,000 (c) 3,007,500
Microcell Telecommunications, Ser. B,
Sr. Discount Notes, Zero Coupon, 2001 . . . . . . 10,000,000 (c) 7,475,000
Occidente y Caribe Celular, Ser. B,
Sr. Discount Notes, Zero Coupon, 2001 . . . . . . 11,000,000 (c) 8,167,500
Omnipoint Communications,
Floating Rate Notes, 8.53%, 2006 . . . . . . . . . 4,983,369 (a) 4,372,906
Orion Network Systems,
Sr. Discount Notes, Zero Coupon, 2002 . . . . . . 32,045,000 (c) 20,188,350
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ------------------------------------------------------- _______________ _______________
Wireless Communications (continued) Pagemart Nationwide,
Sr. Discount Notes, Zero Coupon, 2000 . . . . . . $..13,500,000 (c) $ 12,015,000
WinStar Communications,
Sr. Discount Notes, Zero Coupon, 2000 . . . . . . 23,000,000 (c) 16,445,000
WinStar Equipment,
Gtd. Notes, 12.5%, 2004 . . . . . . . . . . . . . 2,000,000 2,040,000
_____________
97,504,131
_____________
TOTAL BONDS AND NOTES
(cost $917,478,734) . . . . . . . . . . . . . . . $852,024,656
_____________
Equity-Related Securities--3.3% Shares
- ------------------------------------------------------------------------------------------- _______________
Preferred Stocks--3.1%
- -------------------------------------------------------
Broadcasting--1.5% Spanish Broadcasting System,
Ser. A, Cum., $142.50 . . . . . . . . . . . . . . 13,931 $ 14,209,620
_____________
Entertainment--.6% Newscorp Overseas,
Ser. A, Cum., $2.15625 . . . . . . . . . . . . . . 216,973 5,383,643
_____________
Food & Beverages--1.0% RJR Nabisco Holdings Capital Trust,
Cum., $2.50 . . . . . . . . . . . . . . . . . . . 350,000 8,793,750
_____________
TOTAL PREFERRED STOCKS . . . . . . . . . . . . . . . . 28,387,013
_____________
Warrants--.2%
- -------------------------------------------------------
Cable Television--0.0% United International Holdings . . . . . . . . . . . . 100 (g) 1,513
_____________
Entertainment--0.0% Discovery Zone . . . . . . . . . . . . . . . . . . . . 4,000 (g) 4
_____________
Wireless Communications--.2% Comunicacion Celular . . . . . . . . . . . . . . . . . 1,750 (g) 105,219
Worldport Communications . . . . . . . . . . . . . . . 161,871 (g) 1,335,766
_____________
1,440,985
_____________
TOTAL WARRANTS . . . . . . . . . . . . . . . . . . . . 1,442,502
_____________
TOTAL EQUITY-RELATED SECURITIES
(cost $29,243,844) . . . . . . . . . . . . . . . . $ 29,829,515
_____________
Principal
Short-Term Investments--.4% Amount
- ----------------------------------------------------------------------------------------- _______________
U.S. Government Agency; Federal Home Loan Banks,
4.3%, 1/4/1999
(cost $3,664,686) . . . . . . . . . . . . . . . . $....3,666,000 $ 3,664,686
_____________
TOTAL INVESTMENTS (cost $950,387,264). . . . . . . . . . . . . . . . . . . . . . . . . . . 98.1% $885,518,857
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9% $ 17,339,145
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $902,858,002
_______ _____________
</TABLE>
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
Notes to Statements of Investments:
- -----------------------------------------------------------------------------
(a) Variable rate security-interest rate subject to periodic change.
(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 December 31, 1998,
these securities amounted to $87,851,564 or 9.7% of net assets.
(c)Zero coupon until year shown at which time a stated coupon rate becomes
effective.
(d) With warrants to purchase common stock.
(e)Reflects date security can be redeemed at holder's option; the stated
maturity date is 10/30/2005.
(f) Non-income producing--security in default.
(g) Non-income producing security.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998
Cost Value
______________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $950,387,264 $885,518,857
Interest and dividends receivable . . . . . . . . . . . . 21,459,074
Receivable for shares of Beneficial Interest subscribed . . 5,643,526
_____________
912,621,457
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 564,259
Due to Distributor . . . . . . . . . . . . . . . . . . . 514,040
Cash overdraft due to Custodian . . . . . . . . . . . . . 654,632
Payable for investment securities purchased . . . . . . . 5,156,180
Payable for shares of Beneficial Interest redeemed . . . 2,830,812
Interest payable--Note 4 . . . . . . . . . . . . . . . . 43,532
_____________
9,763,455
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $902,858,002
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $984,370,815
Accumulated undistributed investment income--net . . . . 999,673
Accumulated net realized gain (loss) on investments . . . (17,644,079)
Accumulated net unrealized appreciation
(depreciation) on investments--Note 3 . . . . . . . . . (64,868,407)
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $902,858,002
_____________
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
--------------------
Class A Class B Class C Class R
______________ ______________ ______________ ______________
<S> <C> <C> <C> <C>
Net Assets . . . . . . . . . . . . . . . . . . . . . $147,131,418 $551,415,317 $204,183,963 $127,304
Shares Outstanding . . . . . . . . . . . . . . . . . 12,987,900 48,685,143 18,019,906 11,247
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . $11.33 $11.33 $11.33 $11.32
_______ ______ _______ _______
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1998
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Interest . . . . . . . . . . . . . . . . . . . . . . . . $ 67,949,834
Cash dividends . . . . . . . . . . . . . . . . . . . . . 1,434,206
_______________
Total Income . . . . . . . . . . . . . . . . . . . . . $ 69,384,040
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . . . . . 4,630,486
Distribution and service fees--Note 2(b) . . . . . . . . 4,788,857
Interest expense--Note 4 . . . . . . . . . . . . . . . . 116,786
_______________
Total Expenses . . . . . . . . . . . . . . . . . . . . 9,536,129
_______________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,847,911
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments . . . . . . . . . $(17,497,235)
Net unrealized appreciation (depreciation) on investments . . (62,388,806)
_______________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . (79,886,041)
_______________
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . $(20,038,130)
_______________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
December 31, 1998 December 31, 1997*
__________________ __________________
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 59,847,911 $ 6,988,442
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . (17,497,235) (146,844)
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . (62,388,806) (2,479,601)
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . (20,038,130) 4,361,997
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,382,991) (1,398,344)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35,300,767) (4,057,554)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,155,121) (1,509,642)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,480) (19,781)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58,851,359) (6,985,321)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127,961,825 76,591,614
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440,097,645 201,321,431
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184,901,944 69,859,568
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 503,000
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,262,565 814,604
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,117,590 1,172,298
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,905,817 518,369
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,480 19,780
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (40,179,581) (11,289,662)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (48,434,992) (2,850,872)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,282,236) (2,252,352)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) (400,010)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . 650,363,047 334,007,768
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . 571,473,558 331,384,444
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331,384,444 ---
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $902,858,002 $331,384,444
_____________ _____________
UNDISTRIBUTED INVESTMENT INCOME-NET. . . . . . . . . . . . . . . . . . . . . . . $ 999,673 $ 3,121
_____________ _____________
- -----------------------------
* From May 30, 1997 (commencement of operations) to December 31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
_______________________________________
Year Ended Year Ended
December 31, 1998 December 31, 1997*
__________________ __________________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,556,558 6,104,546
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . 523,771 65,046
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,364,705) (897,316)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . . . 7,715,624 5,272,276
___________ ___________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,142,877 16,027,425
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . 764,857 93,658
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,116,604) (227,070)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . . . 32,791,130 15,894,013
___________ ___________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,092,226 5,552,164
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . 327,575 41,378
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,814,091) (179,346)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . . . 12,605,710 5,414,196
___________ ___________
Class R
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ------ 40,237
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . 1,035 1,571
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --- (31,596)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . . . . . . 1,035 10,212
___________ ___________
- -----------------------------
</TABLE>
<TABLE>
<CAPTION>
* From May 30, 1997 (commencement of operations) to December 31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
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.
Class A Shares Class B Shares
___________________________ ___________________________
Year Ended Period Ended Year Ended Period Ended
December 31, December 31, December 31, December 31,
1998 1997(1) 1998 1997(1)
_____________ _____________ ____________ ____________
PER SHARE DATA:
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $12.46 $12.50 $12.46 $12.50
______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . 1.15 .71 1.09 .66
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . (1.14) (.04) (1.14) (.04)
______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . .01 .67 (.05) .62
______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . (1.14) (.71) (1.08) (.66)
______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $11.33 $12.46 $11.33 12.46
______ ______ ______ ______
TOTAL INVESTMENT RETURN (2). . . . . . . . . . . . . . . . . (.10%) 9.16%(3) (.61%) 8.57%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . . .95% .95%(3) 1.45% 1.45%(3)
Ratio of interest expense to average net assets . . . . . .02% .08%(3) .02% .09%(3)
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 9.55% 9.34%(3) 9.02% 8.73%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 45.34% 28.83% 45.34% 28.83%
Net Assets, end of period (000's Omitted) . . . . . . . . $147,131 $65,705 $551,415 $198,057
</TABLE>
- -----------------------------
(1) From May 30, 1997 (commencement of operations) to December 31, 1997.
(2) Exclusive of sales load.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class C Shares Class R Shares
___________________________ ___________________________
Year Ended Period Ended Year Ended Period Ended
December 31, December 31, December 31, December 31,
1998 1997(1) 1998 1997(1)
_____________ _____________ ____________ ____________
PER SHARE DATA:
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $12.47 $12.50 $12.45 $12.50
______ ______ ______ ______
______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . 1.06 .65 1.25 .81
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . (1.15) (.03) (1.21) (.14)
______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . (.09) .62 .04 .67
______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . (1.05) (.65) (1.17) (.72)
______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $11.33 $12.47 $11.32 $12.45
______ ______ ______ ______
TOTAL INVESTMENT RETURN (2). . . . . . . . . . . . . . . . . (.93%) 8.47%(3) .14% 9.26%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . . 1.70% 1.70%(3) .70% .75%(3)
Ratio of interest expense to average net assets . . . . . .02% .09%(3) .03% .05%(3)
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 8.77% 8.54%(3) 10.41% 10.08%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 45.34% 28.83% 45.34% 28.83%
Net Assets, end of period (000's Omitted) . . . . . . . . $204,184 $67,495 $127 $127
</TABLE>
- -----------------------------
(1) From May 30, 1997 (commencement of operations) to December 31, 1997.
(2) Exclusive of sales load.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Limited Term High Income Fund (the "Fund") is separate
diversified series of The Dreyfus/Laurel Funds Trust (the "Trust") which is
registered under the Investment Company Act of 1940, as amended (the "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 (the
" 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.
(C) DISTRIBUTIONS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from net investment income. 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 of 1986, as
amended (the "Code"). To the extent that net realized capital gain can be offset
by capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (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 Code, and to make distributions of taxable income sufficient to relieve it
from substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $8,327,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1998. The
carryover does not include net realized securities losses from November 1, 1998
through December 31, 1998 which are treated, for Federal income tax purposes, as
arising in fiscal 1999. If not applied, the carryover expires in fiscal 2006.
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). Effective July 1, 1998, each
Trustee receives $40,000 per year, plus $5,000 for each joint Board meeting of
The Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel Tax-Free Municipal Funds, and
The Dreyfus/Laurel Funds Trust (the "Dreyfus/Laurel Funds") attended, $2,000 for
separate committee meetings attended which are not held in conjunction with a
regularly scheduled board meeting and $500 for Board meetings and separate
committee meetings attended that are conducted by telephone and is reimbursed
for travel and out-of-pocket expenses. The Chairman of the Board receives an
additional 25% of such compensation (with the exception of reimbursable amounts)
. In the event that there is a joint committee meeting of the Dreyfus/Laurel
Funds and the Dreyfus High Yield Strategies Fund, the $2,000 fee will be
allocated between the Dreyfus/Laurel Funds and the 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.
Prior to July 1, 1998 each Trustee received $27,000 per year, $1,000 for each
Board meeting attended and $750 for each Audit Committee meeting attended and
was reimbursed for travel and out-of-pocket expenses. The Chairman of the Board
received an additional annual fee of $25,000 per year. These fees pertained to
the Dreyfus/Laurel Funds. (The $1,000 attendance fee and reimbursement of
meeting expenses were also borne pro rata by Dreyfus High Yield Strategies Fund)
. These fees and expenses were 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, were 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 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, Class B and Class C shares pay the
Distributor for distributing the Fund' s Class B and Class C shares at an
aggregate annual rate of .50% and .75% of the value of the average daily net
assets of Class B and Class C shares, respectively. Class B and Class C shares
are also subject to a service plan adopted pursuant to Rule 12b-1, under which
Class B and Class C shares DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 December 31,
1998, Class A, Class B and Class C shares were charged $276,562, $1,990,285 and
$1,145,150, respectively, pursuant to the Plan and Class B and Class C shares
were charged $995,143 and $381,717 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 December 31, 1998,
amounted to $873,727,733 and $280,654,213, respectively.
At December 31, 1998, accumulated net unrealized depreciation on investments
was $64,868,407, consisting of $6,188,132 gross unrealized appreciation and
$71,056,539 gross unrealized depreciation.
At December 31, 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
December 31, 1998 was approximately $1,980,000 with a related weighted average
annualized interest rate of 5.91%.
DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
- -----------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT
THE BOARD OF DIRECTORS AND SHAREHOLDERS
THE DREYFUS/LAUREL FUNDS TRUST:
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier Limited Term High
Income Fund of The Dreyfus/Laurel Funds Trust as of December 31, 1998, and the
related statement of operations for the year then ended, the statements of
changes in net assets, and the financial highlights for each of the periods
presented herein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1998, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Limited Term High Income Fund of The Dreyfus/Laurel Funds Trust
as of December 31, 1998, the results of its operations for the year then ended,
the changes in its net assets, and financial highlights for each of the periods
presented herein, in conformity with generally accepted accounting principles.
New York, New York
February 19, 1999
IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal tax purposes the Fund hereby designates 1.67% of the ordinary
dividends paid during the fiscal year ended December 31, 1998 as qualifying for
dividends received deduction.
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. 029/759AR9812
ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
LIMITED TERM
HIGH INCOME FUND
- -------------------------------------------------------------------------------
DECEMBER 31, 1998
[reg.tm logo]
[Dreyfus lion/2hres logo]
YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
<TABLE>
<CAPTION>
The following table shows the performance of the Dreyfus Premier Managed
Income Fund for its annual reporting period ended December 31, 1998:
Approximate Distribution
Total Return* Income Dividends Per Share**
___________ _____________________ _________________
<S> <C> <C> <C>
Class A 4.90%$ 0.739 6.52%
Class B 4.10% $0.653 6.04%
Class C 4.17% $0.652 6.02%
Class R 5.26% $0.766 7.09%
Lehman Brothers
Aggregate Bond Index*** 8.69%
</TABLE>
THE ECONOMY
During 1998, the 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
early in the year, but world economic weakness generated powerful enough
disinflationary forces that the Fed acted instead to ease credit beginning in
September. After many years of subpar economic growth, continental Europe moved
into a sustained economic expansion. The overall European economy benefited as
interest rates in peripheral countries such as Spain and Italy fell, approaching
the lower levels established by Germany, on the eve of currency unification.
Unlike the U.S., Europe has substantial excess capacity of productive plant and
labor. In Asia, weak economies were pervasive as a result of a financial crisis.
The Latin American economies weakened in turn as the financial stresses spread
throughout that region. On balance, there was a substantial weakening of the
world economy over the course of 1998 moderated mainly by the American
consumer's role as "spender of last resort."
A main influence on the U.S. economy during the year was the foreign financial
crisis and consequent cooling of the world economy. The positive effects hit
first. Actual inflation and expected inflation dropped, causing a decline in
long-term Treasury bond yields and mortgage rates. This caused a boom in
housing. The fall in inflation left more of the growth in consumer income with
which to buy goods and services. Thus, consumers benefited from a combination of
good growth in income after inflation, a strong labor market, and increases in
the prices of assets they owned, including bonds, stocks and real estate. In a
sense, 1998 was a year of disinflationary boom in the U.S., as above-trend
economic growth coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis in 1998 from Japan,
emerging market countries and overextended financial institutions. Excess
capacity persists in many worldwide industries after years of high capital
spending followed by the onset of a worldwide weakening in demand. Fortunately,
the U.S. has led the world in making the transition away from the old
manufacturing industries to the new growth industries, such as biotechnology,
software, computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relaxed.
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
For calendar year 1998, intermediate and longer-term interest rates declined
from approximately three-quarters of a percentage point to over one percentage
point. In response to slowing international economic growth rates and stable
domestic inflation, the Federal Reserve lowered the Federal Funds rates on three
separate occasions from 5.50% to 4.75% the last four months of the year. (The
Federal Funds rate is the rate that banks charge each other for overnight
loans.)
Concerns over global economic weakness and benign inflation in the U.S.
economy accelerated demand for fixed-income securities over the last six months.
The collapse of the Russian debt and currency markets in August, continued
economic weakness in Japan and other Asian economies, and fears of spillover
into Brazil served as catalysts for investors to seek the safety of U.S.
Treasury securities. This resulted in sharp price advances for this sector. In
addition, global commodity deflation provided investors with confidence that
inflation would likely remain tame, thus providing a crucial support to higher
bond valuations.
Because of investor demand for quality, commonly referred to as a "flight to
quality," there was an unusual performance disparity in the bond market between
U.S. Government bonds and corporate issues. While interest rates on these two
sectors usually move in tandem, investor demand for credit safety pushed prices
of Treasuries higher, driving their yields significantly lower. At the same
time, many corporate bond prices were declining and their yields rising. While
this trend moderated during the final two months of the year, corporate bond
yields were still at a historically wide gap relative to Government bond rates
at year-end.
During the Fund's reporting period, the Fund continued its strategy of being
overweighted in the corporate sector compared to the Fund's benchmark index. We
believe that the attractive valuation level of these securities, combined with
favorable economic conditions, provide the potential for strong relative
returns. Furthermore, we continue to expect the market to favor the debt of
large, liquid, domestic-oriented companies with strong cash flows. However, the
flight to quality caused Treasuries to outperform corporate issues, and the
Fund' s overweighting in this area caused the Fund to underperform its benchmark
index during the reporting period.
Within the below-investment-grade sector of the portfolio, we increased
holdings in telecommunications and media companies because of the strong growth
in demand for wireless communications as well as the expansion in Internet
usage. Because of the attractive fundamentals present in these securities,
several investment-grade companies acquired the securities of companies whose
ratings had been lowered, resulting in an improvement in credit quality. We
currently expect this investment trend to continue. By the end of the reporting
period, the portfolio had a 30% allocation in below-investment-grade securities.
Mortgage securities also rebounded during the fourth quarter after
underperforming Treasuries earlier in the reporting period. We currently believe
that mortgages can continue to benefit from investor optimism that prepayments
may not accelerate sharply since interest rates have risen. During the fourth
quarter, commercial mortgages also experienced renewed investor interest. In the
asset-backed sector, we feel that home equity issues appear the most attractive
given their yield advantage over Treasuries. The portfolio maintained its
overweighted position in commercial mortgage and asset-backed securities; its
position in residential mortgage securities increased modestly.
We continue to focus on relative value among the various fixed income sectors,
while emphasizing security selection as our primary means of adding value.
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]
Arthur J. MacBride
Portfolio Manager
January 15, 1999
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 from net
investment income paid during the period, divided by the maximum offering price
per share at the end of the period in the case of Class A shares or 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, U.S. government and U.S.
government agency debt instruments, mortgage-backed securities and asset-backed
securities.
DREYFUS PREMIER MANAGED INCOME FUND DECEMBER 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER MANAGED
INCOME FUND CLASS A SHARES AND THE LEHMAN BROTHERS AGGREGATE BOND INDEX
Dollars
$24,240
Lehman Brothers Aggregate Bond Index*
$20,338
<TABLE>
<CAPTION>
Dreyfus Premier Managed Income Fund (Class A Shares)
*Source: Lehman Brothers
Average Annual Total Returns
- -----------------------------------------------------------------------------
Class A Shares Class B Shares
_______________________________________________________ __________________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 12/31/98 Sales Charge Sales Charge (4.5%) Period Ended 12/31/98 Redemption Redemption*
___________________ ____________ ________________ ________________ __________ _________________
<S> <C> <C> <C> <C> <C>
1 Year 4.90% 0.17% 1 Year 4.10% 0.17%
5 Years 5.80 4.82 From Inception (12/19/94) 7.69 7.29
10 Years 7.85 7.36
Class C Shares Class R Shares
</TABLE>
<TABLE>
<CAPTION>
_______________________________________________________ __________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 12/31/98 No Redemption Redemption** Period Ended 12/31/98
___________________ ____________ __________________ _________________
<S> <C> <C> <C> <C>
1 Year 4.17% 3.19% 1 Year 5.26%
From Inception (12/19/94) 7.69 7.69 5 Years 6.06
From Inception (2/1/93) 7.24
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of Dreyfus
Premier Managed Income Fund on 12/31/88 to a $10,000 investment made in the
Lehman Brothers Aggregate Bond Index on that date. All dividends and capital
gain distributions are reinvested. Performance for Class B, Class C and Class R
shares will vary from the performance of Class A shares shown above, due to
differences in charges and expenses.
Dreyfus Premier Managed Income Fund seeks high current income consistent with
what is believed to be prudent risk of capital primarily through investments in
investment-grade corporate and U.S. Government obligations and in obligations
having maturities of 10 years or less. The Fund's performance shown in the line
graph takes into account the maximum initial sales charge on Class A shares and
all other applicable fees and expenses. The Lehman Brothers Aggregate Bond Index
is a widely accepted, unmanaged index of corporate, U.S. government and U.S.
government agency debt instruments, mortgage-backed securities, and asset-backed
securities. The Index does not take into account charges, fees and other
expenses. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights section
of the Prospectus and elsewhere in this report.
* The maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
** The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<TABLE>
<CAPTION>
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998
Principal
Bonds and Notes--98.2% Amount Value
- ----------------------------------------------------- _____________ _____________
Aerospace--1.6% BE Aerospace, Ser. B
<S> <C> <C>
Sr. Notes, 9.875%, 2006 . . . . . . . . . . . $ 300,000 $ 313,500
Compass Aerospace,
Sr. Sub. Notes, 10.125%, 2005 . . . . . . . . 635,000 (a) 619,125
Goodrich (BF),
Notes, 7%, 2038 . . . . . . . . . . . . . . . 240,000 246,423
Pacific Aerospace & Electronics,
Sr. Sub. Notes, 11.25%, 2005 . . . . . . . . . 690,000 (a) 520,950
_______________
1,699,998
_______________
Asset-Backed Ctfs.--8.9% Access Financial Manufactured Housing
Contract Trust,
Ser. 1995-1, Cl. A-2, 6.375%, 2021 . . . . . . 750,000 766,710
Amresco Residential Securities Mortgage
Loan Trust,
Ser. 1998-2, Cl. A8, 5.779%, 2028 . . . . . . 572,941 (b) 572,941
Associates Manufactured Housing Trust,
Ser. 1997-2, Cl. A4, 6.475%, 2028 . . . . . . 316,000 320,988
CIT RV Trust 1997-A,
Cl. A-4, 6.20%, 2006 . . . . . . . . . . . . . 1,241,000 1,253,329
Capital One Master Trust,
Ser. 1998-4, Cl. A, 5.43%, 2007 . . . . . . . 791,000 (b) 791,247
Case Equipment Loan Trust,
Ser. 1998-C, Cl. A-4, 5.610%, 2005 . . . . . . 251,000 251,235
Citibank Credit Card Master Trust I,
Ser. 1998-9, Cl. A, 5.30%, 2006 . . . . . . . 511,000 504,133
EQCC Home Equity Loan Trust,
Ser. 1998-2, Cl. A-3F, 6.229%, 2013 . . . . . 1,968,000 1,957,737
Fleetwood Credit 1997-A Grantor Trust,
Cl. A, 6.64%, 2012 . . . . . . . . . . . . . . 346,161 352,595
Ford Credit Auto Loan Master Trust,
Ser. 1995-1, Cl. A, 6.50%, 2002 . . . . . . . 756,000 767,091
The Money Store Home Equity Trust:
Ser. 1996-C, Cl. A-6, 7.69%, 2024 . . . . . . 637,000 660,977
Ser. 1997-A, Cl. A-4, 6.89%, 2016 . . . . . . 236,000 243,571
Ser. 1998-B, Cl. AF-4, 6.115%, 2021 . . . . . 229,000 229,286
Oakwood Mortgage Investors,
Ser. 1998-A, Cl. A3, 6.05%, 2028 . . . . . . . 612,000 614,133
_______________
9,285,973
_______________
Automotive--.6% Advanced Accessory Systems,
Sr. Sub. Notes, 9.75%, 2007 . . . . . . . . . 580,000 580,000
_______________
Banking--2.8% CitiCorp,
Notes, 8%, 2003 . . . . . . . . . . . . . . . 205,000 222,343
First National Bank of Boston,
Sub. Notes, 7.375%, 2006 . . . . . . . . . . . 758,000 809,857
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ----------------------------------------------------- _____________ _____________
Banking (continued) First Security,
Sr. Notes, 6.875%, 2006 . . . . . . . . . . . $ 380,000 $ 404,228
Great Western Financial Trust II, Ser. A,
Gtd. Capital Securities, 8.206%, 2027 . . . . 550,000 602,760
NationsBank,
Sub. Notes, 6.80%, 2028 . . . . . . . . . . . 285,000 295,753
U.S. Bank,
Sub. Notes, 5.70%, 2008 . . . . . . . . . . . 630,000 626,712
_______________
2,961,653
_______________
Broadcasting & Media--3.4% Adelphia Communications, Ser. B,
Sr. Notes, 8.125%, 2003 . . . . . . . . . . . 500,000 514,375
Avalon Cable Holdings,
Sr. Discount Notes, Zero Coupon, 2003 . . . . 480,000 (a,c) 269,400
Avalon Cable of Michigan,
Sr. Sub. Notes, 9.375%, 2008 . . . . . . . . . 135,000 (a) 138,712
Brill Media:
Sr. Notes, 7.50%, 2007 . . . . . . . . . . . . 540,000 (b) 483,300
Sr. Sub. Appreciation Notes, 7.50%, 2007 . . . 15,429 (b) 2
Century Communications,
Sr. Notes, 9.50%, 2000 . . . . . . . . . . . . 115,000 119,600
Chancellor Media,
Sr. Sub. Notes, 9.375%, 2004 . . . . . . . . . 400,000 422,000
Cumulus Media,
Sr. Notes, 10.375%, 2008 . . . . . . . . . . . 530,000 564,450
LodgeNet Entertainment,
Sr. Notes, 10.25%, 2006 . . . . . . . . . . . 300,000 298,500
United International Holdings, Ser. B,
Sr. Discount Notes, Zero Coupon, 2003 . . . . 1,290,000 (c) 703,050
_______________
3,513,389
_______________
Building Materials--.1% Associated Materials,
Sr. Notes, 9.25%, 2008 . . . . . . . . . . . . 135,000 135,675
_______________
Chemicals--1.4% Brunner Mond Group,
Sr. Sub. Notes, 11%, 2008 . . . . . . . . . . 670,000 (a) 619,750
Octel Developments,
Sr. Notes, 10%, 2006 . . . . . . . . . . . . . 600,000 627,000
Pioneer Americas Acquisition, Ser. B,
Sr. Secured Notes, 9.25%, 2007 . . . . . . . . 230,000 185,150
_______________
1,431,900
_______________
Commercial Mortgage
Pass-Through Ctfs.--5.4% Asset Securitization:
Ser. 1996-MD VI, Cl. A-1A, 6.72%, 2026 . . . . 224,311 228,167
Ser. 1996-MD VI, Cl. A-1C, 7.04%, 2026 . . . . 780,000 839,502
Ser. 1997-D IV, Cl. A-1D, 7.49%, 2029 . . . . 693,000 754,036
CS First Boston Mortgage Securities,
Ser. 1998-C2, Cl. A2, 6.30%, 2008 . . . . . . 1,012,000 1,030,343
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ----------------------------------------------------- _____________ _____________
Commercial Mortgage First Union-Lehman Brothers Commercial
Pass-Through Ctfs. (continued) Mortgage Trust,
Ser. 1997-C1, Cl. IO, 1.487%, 4/18/2027
(Interest Only Obligation) . . . . . . . . . . $ 8,909,328 (b,d) $ 592,693
Lehman Brothers Commercial Conduit
Mortgage Trust,
Ser. 1998-C1, Cl. A2, 6.40%, 2007 . . . . . . 765,000 791,618
Morgan Stanley Capital I:
Ser. 1997-C1, Cl. A1C, 7.63%, 2020 . . . . . . 978,000 1,049,888
Ser. 1998-WF1, Cl. A2, 6.55%, 2007 . . . . . . 381,000 396,954
_______________
5,683,201
_______________
Consumer--5.5% Amazon.Com,
Sr. Discount Notes, Zero Coupon, 2003 . . . . 350,000 (c) 232,750
Biovail International,
Sr. Notes, 10.875%, 2005 . . . . . . . . . . . 400,000 (a) 404,000
Dominos,
Sr. Sub. Notes, 10.375%, 2009 . . . . . . . . 450,000 (a) 453,375
Federated Department Stores,
Notes, 8.125%, 2002 . . . . . . . . . . . . . 125,000 135,099
Finlay Enterprises,
Gtd. Sr. Notes, 9%, 2008 . . . . . . . . . . . 335,000 296,475
Hilton Hotels,
Sr. Notes, 7.375%, 2002 . . . . . . . . . . . 152,000 153,261
ICN Pharmaceuticals, Ser. B,
Sr. Notes, 9.25%, 2005 . . . . . . . . . . . . 300,000 309,000
KinderCare Learning Centers,
Sr. Sub. Notes, 9.50%, 2009 . . . . . . . . . 630,000 630,000
Lamar Advertising,
Gtd. Sr. Sub. Notes, 8.625%, 2007 . . . . . . 250,000 263,750
Loewen Group International, Ser. 3,
Gtd. Sr. Notes, 7.75%, 2001 . . . . . . . . . 250,000 220,000
Muzak/Capital,
Sr. Notes, 10%, 2003 . . . . . . . . . . . . . 400,000 416,000
Prime Succession Acquisition,
Sr. Sub. Notes, 10.75%, 2004 . . . . . . . . . 130,000 129,350
Protection One Alarm Monitoring,
Sr. Discount Notes, 13.625%, 2005 . . . . . . 358,000 409,910
Rayovac, Ser. B,
Sr. Sub. Notes, 10.25%, 2006 . . . . . . . . . 195,000 215,475
Reliant Building Products, Ser. B,
Sr. Sub. Notes, 10.875%, 2004 . . . . . . . . 570,000 493,050
Royal Caribbean Cruises,
Deb., 7.50%, 2027 . . . . . . . . . . . . . . 430,000 421,976
Standard Commercial Tobacco,
Gtd. Sr. Notes, 8.875%, 2005 . . . . . . . . . 580,000 565,500
_______________
5,748,971
_______________
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ----------------------------------------------------- _____________ _____________
Energy--1.8% Calenergy,
Notes, 8.48%, 2028 . . . . . . . . . . . . . . $ 250,000 $ 282,204
Chesapeake Energy, Ser. B,
Sr. Notes, 7.875%, 2004 . . . . . . . . . . . 425,000 337,875
Coastal,
Sr. Notes, 8.125%, 2002 . . . . . . . . . . . 420,000 450,173
HS Resources,
Sr. Sub. Notes, 9.25%, 2006 . . . . . . . . . 205,000 193,725
Noble Drilling,
Sr. Notes, 9.125%, 2006 . . . . . . . . . . . 98,000 109,325
Norcen Energy Resources,
Deb., 7.375%, 2006 . . . . . . . . . . . . . . 165,000 173,319
Oryx Energy,
Notes, 10%, 2001 . . . . . . . . . . . . . . . 80,000 85,875
Williams,
Notes, 6.20%, 2002 . . . . . . . . . . . . . . 280,000 280,921
_______________
1,913,417
_______________
Entertainment--1.3% Imax,
Sr. Notes, 7.875%, 2005 . . . . . . . . . . . 295,000 299,425
Silver Cinemas,
Sr. Sub. Notes, 10.50%, 2005 . . . . . . . . . 510,000 349,350
Six Flags Entertainment,
Gtd. Sr. Notes, 8.875%, 2006 . . . . . . . . . 375,000 386,719
United Artists Theatres, Ser. B,
Sr. Sub. Notes, 9.75%, 2008 . . . . . . . . . 300,000 288,000
_______________
1,323,494
_______________
Environmental--1.1% Allied Waste North America,
Sr. Notes:
7.375%, 2004 . . . . . . . . . . . . . . . . 180,000 (a) 182,700
7.625%, 2006 . . . . . . . . . . . . . . . . 120,000 (a) 121,200
USA Waste Services,
Sr. Notes, 7.125%, 2007 . . . . . . . . . . . 340,000 363,261
WMX Technologies:
Notes:
6.625%, 2002 . . . . . . . . . . . . . . . 135,000 139,166
7.70%, 2002 . . . . . . . . . . . . . . . . 360,000 381,741
_______________
1,188,068
_______________
Financial--9.6% AvalonBay Communities,
Sr. Notes, 6.50%, 2003 . . . . . . . . . . . . 305,000 300,684
Dollar Financial Group, Ser. A,
Sr. Notes, 10.875%, 2006 . . . . . . . . . . . 300,000 304,500
Equitable Life Assurance Society of the U.S.,
Surplus Notes, 7%, 2028 . . . . . . . . . . . 415,000 428,030
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ----------------------------------------------------- _____________ _____________
Financial (continued) Finova Capital,
Medium-Term Notes, 6.22%, 2000 . . . . . . . . $ 810,000 $ 812,600
GMAC:
Notes:
6.875%, 2001 . . . . . . . . . . . . . . . 275,000 283,515
7.125%, 2001 . . . . . . . . . . . . . . . 115,000 118,887
GS Escrow,
Sr. Notes, 7%, 2003 . . . . . . . . . . . . . 500,000 490,452
Jefferson-Pilot Capital Trust A,
Gtd Capital Securities, 8.14%, 2046 . . . . . 385,000 (a) 418,420
Jefferson-Pilot Capital Trust B, Ser. B,
Gtd. Capital Securities, 8.285%, 2046 . . . . 190,000 (a) 207,904
Lehman Brothers Holdings:
Notes:
6.25%, 2003 . . . . . . . . . . . . . . . . 1,040,000 1,032,081
8.50%, 2007 . . . . . . . . . . . . . . . . 610,000 680,609
Sr. Sub. Notes, 6.125%, 2001 . . . . . . . . . 400,000 399,629
Paine Webber Group:
Medium Term Sr. Notes, Ser. C,
8.06%, 2017 . . . . . . . . . . . . . . . . 730,000 793,263
Sr. Notes, 7.39%, 2017 . . . . . . . . . . . . 675,000 685,915
Safeco Capital Trust I, Ser. B
Gtd. Capital Secuities, 8.072%, 2037 . . . . . 750,000 800,828
Sears Roebuck Acceptance,
Notes, 6%, 2003 . . . . . . . . . . . . . . . 780,000 788,538
Sun Life of Canada (U.S.) Capital Trust I,
Gtd. Cum. Capital Securities, 8.526%, 2049 . . 1,265,000 (a) 1,435,509
_______________
9,981,364
_______________
Food & Beverage--1.4% Agrilink Foods,
Sr. Sub. Notes, 11.875%, 2008 . . . . . . . . 270,000 (a) 276,075
Favorite Brands International,
Sr. Notes, 10.75%, 2006 . . . . . . . . . . . 600,000 (a) 495,000
Nabisco,
Notes, 6%, 2001 . . . . . . . . . . . . . . . 735,000 731,650
_______________
1,502,725
_______________
Foreign--1.5% Canadian Forest Oil,
Sr. Sub. Notes, 8.75%, 2007 . . . . . . . . . 525,000 496,125
Canadian National Railway,
Notes, 6.90%, 2028 . . . . . . . . . . . . . . 370,000 382,816
Embotelladora Andina, Ser. A,
Notes, 7%, 2007 . . . . . . . . . . . . . . . 490,000 415,433
Rogers Communications,
Conv. Sub. Deb., 2%, 2005 . . . . . . . . . . 475,000 310,531
_______________
1,604,905
_______________
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ----------------------------------------------------- _____________ _____________
Healthcare--.2% Global Health Sciences,
Sr. Notes, 11%, 2008 . . . . . . . . . . . . . $ 265,000 $ 176,225
_______________
Industrial--6.3% Alliance Laundry Systems,
Sr. Sub. Notes, 9.625%, 2008 . . . . . . . . . 355,000 (a) 342,575
Axia,
Notes, 10.75%, 2008 . . . . . . . . . . . . . 350,000 357,000
Delco Remy International,
Sr. Notes, 8.625%, 2007 . . . . . . . . . . . 325,000 333,125
Eagle-Picher:
Holdings, Ser. B,
Sr. Discount Notes, Zero Coupon, 2003 . . . 600,000 (c) 304,500
Industries,
Sr. Sub. Notes, 9.375%, 2008 . . . . . . . 375,000 354,375
Ingersoll-Rand,
Sr. Notes, 6.255%, 2001 . . . . . . . . . . . 875,000 886,119
Lockheed Martin,
Gtd. Deb., 7.75%, 2026 . . . . . . . . . . . . 930,000 1,070,389
Numatics,
Sr. Sub. Notes, 9.625%, 2008 . . . . . . . . . 140,000 131,600
Plastic Containers, Ser. B,
Sr. Secured Notes, 10%, 2006 . . . . . . . . . 325,000 339,625
Raytheon,
Notes, 5.95%, 2001 . . . . . . . . . . . . . . 600,000 607,534
Regional,
Sr. Notes, 10.50%, 2008 . . . . . . . . . . . 535,000 543,025
Sony,
Notes, 6.125%, 2003 . . . . . . . . . . . . . 130,000 133,447
Steel Heddle Manufacturing,
Sr. Sub. Notes, 10.625%, 2008 . . . . . . . . 600,000 471,000
Verio,
Sr. Notes, 11.25%, 2008 . . . . . . . . . . . 410,000 (a) 414,100
Wesco Distribution, Ser. B,
Sr. Sub. Notes, 9.125%, 2008 . . . . . . . . . 300,000 301,500
_______________
6,589,914
_______________
Metals--.4% U.S. Can, Ser. B,
Sr. Sub.Notes, 10.125%, 2006 . . . . . . . . . 350,000 360,500
_______________
Retailers--.6% Fedders North America,
Gtd. Sr. Sub. Notes, 9.375%, 2007 . . . . . . 600,000 607,500
_______________
Technology--1.5% Amphenol,
Sr. Sub. Notes, 9.875%, 2007 . . . . . . . . . 330,000 338,250
DynCorp,
Sr. Sub. Notes, 9.50%, 2007 . . . . . . . . . 520,000 522,600
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ----------------------------------------------------- _____________ _____________
Technology (continued) Iron Mountain,
Sr. Notes, 10.125%, 2006 . . . . . . . . . . . $ 600,000 $ 648,000
_______________
1,508,850
_______________
Telecommunications--7.8% 21st Century Telecom Group,
Sr. Discount Notes, Zero Coupon, 2003 . . . . 1,040,000 (c) 442,000
Comcast Cable Communications,
Notes, 6.20%, 2008 . . . . . . . . . . . . . . 615,000 627,485
Comcast Cellular,
Sr. Notes, 9.50%, 2007 . . . . . . . . . . . . 300,000 319,500
Dobson Wireline,
Sr. Notes, 12.25%, 2008 . . . . . . . . . . . 700,000 651,000
E. Spire Communications,
Sr. Discount Notes, Zero Coupon, 2003 . . . . 500,000 (c) 197,500
Echostar Communications,
Sr. Secured Discount Notes, Zero Coupon, 1999 . 325,000 (c) 334,750
GCI,
Sr. Notes, 9.75%, 2007 . . . . . . . . . . . . 400,000 398,000
Iridium/Capital,
Sr. Notes, 11.25%, 2005 . . . . . . . . . . . 800,000 692,000
Level 3 Communications,
Sr. Notes, 9.125%, 2008 . . . . . . . . . . . 550,000 545,875
McLeod USA,
Sr. Notes, 9.25%, 2007 . . . . . . . . . . . . 350,000 367,500
Nextel Communications,
Sr. Discount Notes, Zero Coupon, 2002 . . . . 1,150,000 (c) 701,500
Orion Network Systems,
Sr. Notes, 11.25%, 2007 (Units) . . . . . . . 550,000 (e) 528,000
Paging Network,
Sr. Sub. Notes, 8.875%, 2006 . . . . . . . . . 770,000 719,950
Price Communications Wireless,
Sr. Notes, 9.125%, 2006 . . . . . . . . . . . 430,000 (a) 436,450
Splitrock Services, Ser. B,
Gtd. Sr. Notes, 11.75%, 2008 . . . . . . . . . 500,000 435,000
Telehub Communications,
Sr. Discount Notes, Zero Coupon, 2001(Units) . 400,000 (a,c,e) 214,000
Time Warner Telecommunications,
Sr. Notes, 9.75%, 2008 . . . . . . . . . . . . 505,000 532,775
_______________
8,143,285
_______________
Textiles--.5% Burlington Industries,
Deb., 7.25%, 2007 . . . . . . . . . . . . . . 506,000 516,950
_______________
Utilities--1.2% Avon Energy Partners Holdings,
Sr. Notes, 6.73%, 2002 . . . . . . . . . . . . 950,000 (a) 976,935
Niagara Mohawk Power, Ser. C,
Sr. Notes, 7.125%, 2001 . . . . . . . . . . . 230,000 234,724
_______________
1,211,659
_______________
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Principal
Bonds and Notes (continued) Amount Value
- ----------------------------------------------------- _____________ _____________
U.S. Government Agencies/
Mortgage Backed--22.5% Federal Home Loan Mortgage Corp.:
7.50%, 9/1/2012 . . . . . . . . . . . . . . . $ 815,658 $ 841,906
9.50%, 7/25/2022 . . . . . . . . . . . . . . . 413,286 440,406
Federal National Mortgage Association:
6%, 8/1/2010-2/15/2029 . . . . . . . . . . . . 3,309,480 (f) 3,293,979
6.50%, 11/1/2003-1/15/2029 . . . . . . . . . . 4,721,496 (f) 4,793,215
7%, 7/1/2022-7/1/2023 . . . . . . . . . . . . 736,762 756,605
7.50%, 4/1/2005 . . . . . . . . . . . . . . . 33,483 33,483
7.536%, 6/1/2016 . . . . . . . . . . . . . . . 945,746 1,050,249
Gtd. REMIC Pass-Through Ctfs.,
Ser. 1996-M7, Cl. B, 6.839%, 6/17/2011 . . 320,000 (b) 330,462
Government National Mortgage Association I:
6.50%, 1/15/2029 . . . . . . . . . . . . . . . 1,967,000 (g) 1,987,280
7%, 12/15/2025-6/15/2028 . . . . . . . . . . . 3,280,793 3,370,357
7.50%, 12/15/2023-10/15/2028 . . . . . . . . . 5,569,190 5,750,934
8%, 7/15/2027 . . . . . . . . . . . . . . . . 809,598 842,735
_______________
23,491,611
_______________
U.S. Government--10.8% U.S. Treasury Bonds,
7.25%, 8/15/2022 . . . . . . . . . . . . . . . 2,570,000 3,196,052
U.S. Treasury Notes:
5.375%, 1/31/2000 . . . . . . . . . . . . . . 6,311,000 6,361,362
6.375%, 8/15/2002 . . . . . . . . . . . . . . 658,000 694,868
U.S. Treasury Principal Strips,
Zero Coupon, 8/15/2022 . . . . . . . . . . . . 3,800,000 1,050,358
_______________
11,302,640
_______________
TOTAL BONDS AND NOTES
(cost $102,882,245) . . . . . . . . . . . . . . . $102,463,867
_____________
Short-Term Investments--9.2%
- -----------------------------------------------------
Commercial Paper; Ford Motor Credit,
5%, 1/4/1999 . . . . . . . . . . . . . . . . . . . $ 5,200,000 $ 5,200,000
General Electric Credit,
5%, 1/4/1999 . . . . . . . . . . . . . . . . . . . 4,347,000 4,347,000
_______________
TOTAL SHORT-TERM INVESTMENTS
(cost $9,547,000) . . . . . . . . . . . . . . . . $ 9,547,000
_____________
TOTAL INVESTMENTS (cost $112,429,245). . . . . . . . . . . . . . . . . . . . . . . . . . . 107.4% $112,010,867
_______ _______________
LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . (7.4%) $ (7,708,139)
_______ _______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $104,302,728
_______ _______________
</TABLE>
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
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 December 31, 1998,
these securities amounted to $8,546,180 or 8.2% of net assets.
(b) Variable rate security--interest rate subject to change.
(c) Zero Coupon until year shown at which time a stated coupon rate becomes
effective.
(d) Notional face amount shown.
(e) With warrants to purchase common stock.
(f) Partially purchased on a forward commitment basis.
(g) Purchased on a forward commitment basis.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998
Cost Value
_____________ ______________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $112,429,245 $112,010,867
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 1,283,951
Receivable for investment securities sold . . . . . . . . 1,811,608
Interest receivable . . . . . . . . . . . . . . . . . . . 1,587,670
Receivable for shares of Beneficial Interest subscribed . . 166,041
______________
116,860,137
______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 75,882
Due to Distributor . . . . . . . . . . . . . . . . . . . 19,596
Payable for investment securities purchased . . . . . . . 10,426,307
Payable for shares of Beneficial Interest redeemed . . . 2,035,624
______________
12,557,409
______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $104,302,728
______________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $111,104,012
Accumulated distributions in excess of investment
income--net . . . . . . . . . . . . . . . . . . . . . . (71,225)
Accumulated net realized gain (loss) on investments . . . (6,311,681)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3 . . . . . . . . . . . . . . . . (418,378)
______________
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $104,302,728
______________
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
--------------------
Class A Class B Class C Class R
______________ _______________ ______________ ______________
<S> <C> <C> <C> <C>
Net Assets . . . . . . . . . . . . . . . . . . . . . . $71,901,965 $16,324,732 $5,368,908 $10,707,123
Shares Outstanding . . . . . . . . . . . . . . . . . . 6,649,729 1,509,632 496,184 990,243
NET ASSET VALUE PER SHARE . . . . . . . . . . . . . . $10.81 $10.81 $10.82 $10.81
_______ _______ _______ _______
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1998
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $ 7,343,282
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . $ 680,914
Distribution and service fees--Note 2(b) . . . . 311,712
Loan commitment fees--Note 4 . . . . . . . . . . 533
____________
Total Expenses . . . . . . . . . . . . . . . . 993,159
_____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,350,123
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments . . . . . $ 1,022,323
Net unrealized appreciation (depreciation)
on investments . . . . . . . . . . . . . . . . (2,710,587)
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . (1,688,264)
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $ 4,661,859
_____________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
December 31, 1998 December 31, 1997
_________________ _________________
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,350,123 $ 6,300,051
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 1,022,323 919,974
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . (2,710,587) 1,470,433
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 4,661,859 8,690,458
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,912,986) (4,956,835)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (615,010) (351,138)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (146,175) (45,681)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (787,520) (906,054)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,461,691) (6,259,708)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,151,854 9,538,076
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,907,066 3,306,776
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,118,598 704,099
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,863,405 4,188,843
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,841,225 3,927,349
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301,251 165,637
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,245 20,653
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 668,194 805,637
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,634,036) (19,780,145)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,590,805) (1,719,546)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (732,720) (160,373)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,633,078) (6,881,617)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . 14,291,199 (5,884,611)
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . 12,491,367 (3,453,861)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,811,361 95,265,222
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $104,302,728 $ 91,811,361
_____________ _____________
UNDISTRIBUTED INVESTMENT INCOME (DISTRIBUTIONS IN EXCESS OF INVESTMENT INCOME)--NET. . $ (71,225) $ 40,343
_____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
_______________________________
Year Ended Year Ended
December 31, 1998 December 31, 1997
_________________ _________________
CAPITAL SHARE TRANSACTIONS:
Class A
_______
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831,761 885,615
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 349,834 363,709
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,150,108) (1,837,421)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . 31,487 (588,097)
__________ __________
Class B
_______
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,184,201 306,677
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 27,508 15,300
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (328,343) (159,287)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . 883,366 162,690
__________ __________
Class C
_______
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 469,333 65,104
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 2,760 1,907
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (67,335) (14,740)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . 404,758 52,271
__________ __________
Class R
_______
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 995,589 386,896
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 60,836 74,624
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,068,058) (631,385)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . (11,633) (169,865)
__________ __________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class A Shares
_____________________________________________________
Year Ended December 31,
_____________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994(1,2)
_____ _____ ______ ______ ________
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $11.01 $10.73 $11.08 $10.12 $11.38
______ ______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .73 .73 .69 .75 .69(3)
Net realized and unrealized gain (loss) on investments . (.19) .27 (.35) .96 (1.26)
______ ______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . .54 1.00 .34 1.71 (.57)
______ ______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.74) (.72) (.69) (.75) (.69)
______ ______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . $10.81 $11.01 $10.73 $11.08 $10.12
______ ______ _______ _______ _______
TOTAL INVESTMENT RETURN(4) . . . . . . . . . . . . . . . . . 4.90% 9.80% 3.42% 17.32% (5.14%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .95% .95% .95% .95% .98%(5)
Ratio of net investment income to average net assets . . 6.62% 6.74% 6.48% 7.08% 6.32%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 238.95% 244.44% 251.66% 236.10% 270.00%
Net Assets, end of period (000's Omitted) . . . . . . . . $71,902 $72,878 $77,305 $80,782 $79,548
- -----------
</TABLE>
(1)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.
(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)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.
(4) Exclusive of sales load.
(5)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 year ended December 31, 1994 would have
been .99%.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.(1)
Class B Shares
________________________________________________
Year Ended December 31,
_________________________________________________
PER SHARE DATA: 1998 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 . . . . . . . . . . . . . . . . . . . . . . . . .64 .65 .61 .67
Net realized and unrealized gain (loss) on investments . . . . . . . . (.19) .27 (.35) .96
______ _______ ______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . .45 .92 .26 1.63
______ _______ ______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . (.65) (.64) (.61) (.67)
______ _______ ______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $10.81 $11.01 $10.73 $11.08
______ _______ ______ _______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . . . . . . . . 4.10% 8.97% 2.54% 16.55%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 1.70% 1.70% 1.70% 1.69%
Ratio of net investment income to average net assets . . . . . . . . . 5.81% 5.98% 5.77% 6.41%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 238.95% 244.44% 251.66% 236.10%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $16,325 $6,896 $4,973 $2,236
- ---------
</TABLE>
(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
presented because no shares had been issued to the public as of that date.
(2) Exclusive of sales load.
SEE NOTES TO FINANCIAL STATEMENTS.
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
________________________________________________
Year Ended December 31,
_________________________________________________
PER SHARE DATA: 1998 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 . . . . . . . . . . . . . . . . . . . . . . . . .64 .64 .61 .67
Net realized and unrealized gain (loss) on investments . . . . . . . . (.19) .29 (.35) .96
______ _______ ______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . .45 .93 .26 1.63
______ _______ ______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . (.65) (.64) (.61) (.67)
______ _______ ______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $10.82 $11.02 $10.73 $11.08
______ _______ ______ _______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . . . . . . . . 4.17% 8.96% 2.49% 16.54%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 1.69% 1.70% 1.68% 1.66%
Ratio of net investment income to average net assets . . . . . . . . . 5.74% 5.95% 5.69% 6.03%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 238.95% 244.44% 251.66% 236.10%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $5,369 $1,007 $420 $67
- ---------
</TABLE>
(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
presented because no shares had been issued to the public as of that date.
(2) Exclusive of sales load.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
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.
Class R Shares
_____________________________________________________
Year Ended December 31,
_____________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994(1,2)
_____ _____ ______ ______ ________
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $11.01 $10.73 $11.08 $10.12 $11.38
______ ______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .74 .76 .72 .78 .72(3)
Net realized and unrealized gain (loss) on investments . (.17) .27 (.35) .96 (1.26)
______ ______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . .57 1.03 .37 1.74 (.54)
______ ______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.77) (.75) (.72) (.78) (.72)
______ ______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . $10.81 $11.01 $10.73 $11.08 $10.12
______ ______ _______ _______ _______
TOTAL INVESTMENT RETURN(4) . . . . . . . . . . . . . . . . . 5.26% 9.97% 3.58% 17.71% (4.88%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .70% .70% .70% .70% .71%(5)
Ratio of net investment income to average net assets . . 6.77% 6.99% 6.74% 7.31% 6.59%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 238.95% 244.44% 251.66% 236.10% 270.00%
Net Assets, end of period (000's Omitted) . . . . . . . . $10,707 $11,031 $12,567 $11,532 $9,588
- -----------
</TABLE>
(1)Effective April 4, 1994, the Investment Class shares were redesignated as
the Trust Shares. On October 17, 1994, the Trust Shares were redesignated Class
R shares.
(2)Prior to April 4, 1994, The Boston Company Advisors, Inc. served as the
Fund' s investment adviser. From April 4, 1994 through October 16, 1994, Mellon
Bank, N.A. served as the Fund's investment manager. Effective October 17, 1994,
The Dreyfus Corporation serves as the Fund's investment manager.
(3)Net investment income before voluntary waiver of fees and/or reimbursement
of expenses by the investment adviser for the year ended December 31, 1994 was
$.71.
(4) Exclusive of sales load.
(5)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 year ended December 31, 1994 would have been .72%.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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, as amended (the "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 (the "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 market 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 DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
of the Internal Revenue Code of 1986, as amended (the "Code"). To the extent
that net realized capital gain can be offset by capital loss carryovers, it is
the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the 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 $6,300,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1998. If not
applied, $4,554,000 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). Effective July 1, 1998, each
Trustee receives $40,000 per year, plus $5,000 for each joint Board meeting of
The Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel Tax-Free Municipal Funds, and
The Dreyfus/Laurel Funds Trust (the "Dreyfus/Laurel Funds") attended, $2,000 for
separate committee meetings attended which are not held in conjunction with a
regularly scheduled board meeting and $500 for Board meetings and separate
committee meetings attended that are conducted by telephone and is reimbursed
for travel and out-of-pocket expenses. The Chairman of the Board receives an
additional 25% of such compensation (with the exception of reimbursable amounts)
. These fees pertain to the Dreyfus/Laurel Funds and are charged and allocated
to each series based on net assets. In the event that there is a joint
committee meeting of the Dreyfus/Laurel Funds and the Dreyfus High Yield
Strategies Fund, the $2,000 fee will be allocated between the Dreyfus/Laurel
Funds and the Dreyfus High Yield Strategies Fund. 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.
Prior to July 1, 1998 each Trustee received $27,000 per year, $1,000 for each
Board meeting attended and $750 for each Audit Committee meeting attended and
was reimbursed for travel and out-of-pocket expenses. The Chairman of the Board
received an additional annual fee of $25,000 per year. These fees pertained to
the Dreyfus/Laurel Funds. (The $1,000 attendance fee and reimbursement of
meeting expenses were also borne pro rata by Dreyfus High Yield Strategies Fund)
. These fees and expenses were 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, were in fact paid directly by the Manager
to the non-interested Trustees.
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $3,089 during the period ended December 31, 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, 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 December 31, 1998,
Class A, Class B and Class C shares were charged $182,651, $78,057 and $18,739
respectively, pursuant to the Plan and Class B and Class C shares were charged
$26,019 and $6,246, 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 (including paydowns) of investment
securities, excluding short-term securities, during the period ended December
31, 1998 amounted to $236,778,873 and $226,942,658, respectively.
At December 31, 1998, accumulated net unrealized depreciation on investments
was $418,378, consisting of $1,783,438 gross unrealized appreciation and
$2,201,816 gross unrealized depreciation.
At December 31, 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 (the "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
December 31, 1998, the Fund did not borrow under the Facility.
DREYFUS PREMIER MANAGED INCOME FUND
- -----------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
THE BOARD OF TRUSTEES AND SHAREHOLDERS
THE DREYFUS/LAUREL FUNDS TRUST:
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier Managed Income Fund
of The Dreyfus/Laurel Funds Trust as of December 31, 1998, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the periods presented herein. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1998, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Managed Income Fund of The Dreyfus/Laurel Funds Trust as of
December 31, 1998, the results of its operations for the year then ended, the
changes in its net assets for each of two years in the period then ended, and
its financial highlights for each of the periods presented herein, in conformity
with generally accepted accounting principles.
New York, New York
February 19, 1999
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. 349/649AR9812
Annual Report
- -------------------------------------------------------------------------------
DREYFUS PREMIER
MANAGED INCOME
FUND
- -------------------------------------------------------------------------------
December 31, 1998
[reg.tm logo]
[Dreyfus lion/2hres logo]
YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with the annual report for Dreyfus Premier Core
Value Fund for the fiscal year ended December 31, 1998. The table below shows
the total return of the Fund's various classes of shares including two that
began operations on January 16, 1998. The total return of the Standard & Poor's
500 Composite Stock Price Index is also provided:
Total Return*
____________
Class A Shares 7.06%
Class B Shares (since inception on 1/16/98) 10.24%
Class C Shares (since inception on 1/16/98) 10.24%
Class R Shares 7.01%
Institutional Shares 7.17%
Standard & Poor's 500 Composite
Stock Price Index** 28.60%
ECONOMIC REVIEW
During 1998, the 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
early in the year, but world economic weakness generated powerful enough
disinflationary forces that the Fed acted instead to ease credit beginning in
September. After many years of subpar economic growth, continental Europe moved
into a sustained economic expansion. The overall European economy benefited as
interest rates in peripheral countries such as Spain and Italy fell, approaching
the lower levels established by Germany, on the eve of currency unification.
Unlike the U.S., Europe has substantial excess capacity of productive plant and
labor. In Asia, weak economies were pervasive as a result of a financial crisis.
The Latin American economies weakened in turn as the financial stresses spread
throughout that region. On balance, there was a substantial weakening of the
world economy over the course of 1998, moderated mainly by the American
consumer's role as "spender of last resort."
A main influence on the U.S. economy during the year was the foreign financial
crisis and consequent cooling of the world economy. The positive effects hit
first. Actual inflation and expected inflation dropped, causing a decline in
long-term Treasury bond yields and mortgage rates. This caused a boom in
housing. The fall in inflation left more of the growth in consumer income with
which to buy goods and services. Thus, consumers benefited from a combination of
good growth in income after inflation, a strong labor market, and increases in
the prices of assets they owned, including bonds, stocks and real estate. In a
sense, 1998 was a year of disinflationary boom in the U.S., as above-trend
economic growth coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long-Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis in 1998 from Japan,
emerging market countries and overextended financial institutions. Excess
capacity persists in many worldwide industries after years of high capital
spending followed by the onset of a worldwide weakening in demand. Fortunately,
the U.S. has led the world in making the transition away from the old
manufacturing industries to the new growth industries, such as biotechnology,
software, computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world, including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relax.
MARKET OVERVIEW
Volatility was the overriding characteristic of equity markets in the year
ended December 31. There was stock market strength during the early part of the
year. Small-cap indices started to erode in the spring and were joined by
large-cap indices by midsummer. Indices declined sharply until the end of
August, followed by a rebound and then a renewed decline amidst financial fears
until early October. A strong rally followed in the last three months of the
year in response to the easing of monetary policy. Over the 12-month period, the
total return on the Standard and Poor's 500 Composite Stock Price Index was
28.60% . Returns on mid-cap and small-cap stock indices continued to be weaker,
with a negative total return on small-cap indices.
Three key trends influenced stock market behavior during the year. First, the
Federal Reserve kept the Federal Funds rate flat at 5.5% for nearly nine months
of the year, but then began a succession of easing moves. Second, weakness in
the economies of emerging countries contributed to declining commodity prices
and a drop in long-term Treasury bond yields to multidecade lows. Third,
expectations for corporate profits dropped, first in the sectors sensitive to
Asian developments such as oil, basic materials and exports and then for a
broader list of stocks.
The trigger for the sharp decline in stocks in August appeared to be the
Russian default that month. This resulted in deepening concerns about weaker
economic growth and corporate profits. There was also a global margin call on
risky assets held by hedge funds and financial institutions. This raised the
cost of debt financing for many corporations and many emerging countries.
Expectations for economic activity in emerging countries in Asia and Latin
America sank; those for U.S. corporate profits were put on hold. Despite the
fall in Treasury bond yields, financial stocks led the summer selloff due to
concerns that financial difficulties might spread among emerging countries, who
might fail to repay loans. However, in the last three months of the year, these
fears began to ebb in response to Federal Reserve easing moves.
The erosion of expectations for corporate profit growth over the last year
contributed to an outperformance by a small group of "supercap" growth stocks
for much of the year. Investors had more confidence in the prospect for strong
persistent earnings growth for this small group of stocks than for the broad
market. Value stocks, which often have greater cyclical sensitivity to earnings
fluctuations, lagged behind these supercap growth stocks. In addition, many of
the financial stocks that fall into the value category fell sharply, following
the Russian default and global margin call concerns, before rebounding strongly
after the Federal Reserve acted.
The year ended December 31, 1998 was characterized by very different
performances of the various market sectors. For example, the total return for
the year on the Russell 1000 Index, with a heavy large-cap representation, was
27.02%, while the Russell 1000 Growth Index returned 38.71% and the Russell 1000
Value Index returned 15.63%. The return on the Russell Midcap Index was 10.09%
while the small-cap Russell 2000 Index return was negative 2.55%.***
Another pattern in 1998 was that high quality assets outperformed medium and
low quality assets. Treasury bonds outperformed junk bonds; U.S. and European
stocks outperformed emerging market stocks; blue chip stocks, especially major
growth stocks, generally rose more than the average stock. In an environment of
concern about financial risks, the high-grade assets were the market leaders.
PORTFOLIO FOCUS
The Fund's performance significantly trailed that of the S&P 500 in 1998. The
Fund's value orientation made it challenging to surpass the index's performance,
which was primarily driven by large-capitalization growth stocks. Growth stocks
in the S&P 500 appreciated 42.2%, whereas value stocks returned 14.7% in 1998.
In fact, the top ten contributors to the S&P 500 Index's returns in 1998,
including Microsoft, General Electric, Wal-Mart Stores, Lucent Technologies and
Cisco Systems, generated over 40% of the index's total return. The Fund did not
own these securities because of their high valuation levels and thus did not
participate in this portion of the stock market rally. The Fund did not keep
pace with the S& P Barra Value Index(+) in 1998, primarily because of its
underweighted position in telephone utilities and consumer durables throughout
the reporting period. Performance of this index was even more concentrated than
that of the S&P 500, with the top ten stocks accounting for 65% of the index's
1998 return. We owned four of these ten stocks during the reporting period, but
not the others because, by our stated valuation levels, they did not qualify as
value stocks.
The Fund's best performing sectors during 1998 included consumer services and
capital goods. The Fund was overweighted in both of these sectors throughout the
year. The Fund's top five performing stocks were Sun Microsystems, International
Business Machines, Alcatel Alsthom, ADS, McDonald' s, and Tricon Global
Restaurants. Among the weakest performing sectors in the Fund were health care
and technology. Due to the high valuation levels of these sectors, the Fund was
underweighted in both of these areas throughout the year. Venator Group,
Republic Industries, RJR Nabisco Holdings, Bankers Trust New York and Lam
Research were the weakest securities in the Fund.
The Fund' s investment policies remain unchanged. It continues to emphasize
large-cap value stocks with strong operating fundamentals and positive business
momentum.
Currently, the Fund is overweighted in financial services, consumer services
and energy and underweighted in technology and health care. Recent strategy
changes included increasing the consumer durables, technology and utilities
weightings and decreasing the basic industries and energy weightings. We believe
that the holdings in the Fund represent strong value, consistent with our
investment style.
We appreciate the opportunity to serve your investment needs.
Sincerely,
[Valerie J. Sill signature]
Valerie J. Sill
Portfolio Manager
January 22, 1999
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 Composite Stock Price Index is a widely accepted unmanaged index of
U.S. stock market performance.
***The Russell 1000 Index measures the performance of the 1,000 largest
companies in the Russell 3000 Index, which represents approximately 89% of the
total market capitalization of the Russell 3000 Index. The Russell 1000 Growth
Index measures the performance of those Russell 1000 companies with higher
price-to-book ratios and higher forecasted growth values. The Russell 1000 Value
Index measures the performance of those Russell 1000 companies with lower
price-to-book ratios and lower forecasted growth values. The Russell Midcap
Index consists of the bottom 800 securities in the Russell 1000 Index as ranked
by total market capitalization and is a widely accepted measure of medium-cap
stock market performance. The Russell 2000 Index is composed of the 2,000
smallest companies in the Russell 3000 Index. The Russell 3000 Index is composed
of 3,000 of the largest U.S. companies by market capitalization. All indices are
unmanaged and include reinvested dividends.
(+)SOURCE: LIPPER ANALYTICAL SERVICES, INC.--Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The Standard
& Poor' s Barra Value Index (Value Index) is a capitalization-weighted index of
all the stocks in the Standard & Poor's 500 Composite Stock Price Index (S&P
500) that have low price-to-book ratios. It is designed so that approximately
50% of the S&P 500's market capitalization is in the Value Index.
DREYFUS PREMIER CORE VALUE FUND DECEMBER 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER CORE
VALUE FUND CLASS A SHARES AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE
INDEX
Dollars
$57,864
Standard & Poor's 500 Composite Stock Price Index*
$33,616
<TABLE>
<CAPTION>
Dreyfus Premier Core Value Fund (Class A Shares)
*Source: Lipper Analytical Services, Inc.
Average Annual Total Returns Actual Aggregate Total Returns
- -----------------------------------------------------------------------------
Class A Shares Class B Shares
_______________________________________________________ __________________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 12/31/98 Sales Charge Sales Charge (5.75%) Period Ended 12/31/98 Redemption Redemption*
___________________ ____________ ________________ ________________ __________ _________________
<S> <C> <C> <C> <C> <C>
1 Year 7.06% 0.89% From Inception (1/16/98) 10.24% 6.24%
5 Years 17.23 15.85
10 Years 13.56 12.89
Actual Aggregate Total Returns Average Annual Total Returns
- ------------------------------------------------------------------------------------------------------------------------------
Class C Shares Class R Shares
_______________________________________________________ __________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 12/31/98 No Redemption Redemption** Period Ended 12/31/98
___________________ ____________ __________________ _________________
From Inception (1/16/98) 10.24% 9.24% 1 Year 7.01%
From Inception (8/4/94) 19.25
Institutuional Shares
__________________________________________________________
Period Ended 12/31/98
_________________
1 Year 7.17%
5 Years 17.35%
From Inception (2/1/93) 17.12
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of Dreyfus
Premier Core Value Fund on 12/31/88 to a $10,000 investment made in the Standard
& Poor's 500 Composite Stock Price Index on that date. All dividends and capital
gain distributions are reinvested. Performance for Class B, Class C, Class R and
Institutional shares will vary from the performance of Class A shares shown
above due to differences in charges and expenses.
The Fund' s performance shown in the line graph takes into account the maximum
initial sales charge on Class A shares and all other applicable fees and
expenses. The Standard & Poor' s 500 Composite Stock Price Index is a widely
accepted, unmanaged index of overall stock market performance, which does not
take into account charges, fees and other expenses. Further information relating
to Fund performance, including expense reimbursements, if applicable, is
contained in the Financial Highlights section of the Prospectus and elsewhere in
this report.
*The maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<TABLE>
<CAPTION>
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998
Common Stocks--97.8% Shares Value
- ------------------------------------------------------- _____________ _____________
Aerospace &
<S> <C> <C>
Military Technology--.0% C.S.F. (Thompson) . . . . . . . . . . . . . . . . . . 3,025 $ 129,963
_____________
Appliances--2.1% Philips Electronics . . . . . . . . . . . . . . . . . 189,200 12,806,475
Rinnai . . . . . . . . . . . . . . . . . . . . . . . . 4,300 75,040
Sony . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 109,026
_____________
12,990,541
_____________
Automobiles--.1% Autoliv . . . . . . . . . . . . . . . . . . . . . . . 2,700 96,704
Honda Motor . . . . . . . . . . . . . . . . . . . . . 2,000 65,530
Toyota Motor . . . . . . . . . . . . . . . . . . . . . 3,000 81,339
Volkswagen . . . . . . . . . . . . . . . . . . . . . . 850 67,873
_____________
311,446
_____________
Banking--2.9% ABN-Amro . . . . . . . . . . . . . . . . . . . . . . . 4,706 99,050
Australia & New Zealand Banking . . . . . . . . . . . 11,340 74,181
Banco Pinto & Sotto Mayor . . . . . . . . . . . . . . 2,360 44,745
Banco Popular Espanol . . . . . . . . . . . . . . . . 1,100 83,065
BankAmerica . . . . . . . . . . . . . . . . . . . . . 292,286 17,573,696
Corporacion Bancaria de Espana, ADR . . . . . . . . . 1,400 72,100
Deutsche Bank . . . . . . . . . . . . . . . . . . . . 1,200 70,641
Development Bank of Singapore . . . . . . . . . . . . 7,500 67,686
Dexia France . . . . . . . . . . . . . . . . . . . . . 450 69,358
HSBC . . . . . . . . . . . . . . . . . . . . . . . . . 888 22,122
Istituto Bancario San Paolo di Torino, ADR . . . . . . 1,254 (a) 44,831
Jyske Bank . . . . . . . . . . . . . . . . . . . . . . 500 48,290
Kookmin Bank, ADS . . . . . . . . . . . . . . . . . . 298 (a,b) 2,414
Societe Generale . . . . . . . . . . . . . . . . . . . 510 82,623
Standard Chartered . . . . . . . . . . . . . . . . . . 7,000 80,831
UBS . . . . . . . . . . . . . . . . . . . . . . . . . 300 92,140
_____________
18,527,773
_____________
Basic Industries--2.0% Bethlehem Steel . . . . . . . . . . . . . . . . . . . 6,600 (a) 55,275
British Steel, ADS . . . . . . . . . . . . . . . . . . 400 5,850
Broken Hill Property, ADR . . . . . . . . . . . . . . 200 2,875
Dow Chemical . . . . . . . . . . . . . . . . . . . . . 34,000 3,091,875
Reynolds Metals . . . . . . . . . . . . . . . . . . . 89,500 4,715,531
Union Carbide . . . . . . . . . . . . . . . . . . . . 105,000 4,462,500
_____________
12,333,906
_____________
Beverages & Tobacco--1.9% Philip Morris Cos. . . . . . . . . . . . . . . . . . . 225,500 12,064,250
_____________
Broadcasting & Publishing--.0% Singapore Press Holdings . . . . . . . . . . . . . . . 4,000 43,610
_____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- _____________ _____________
Building Materials--.0% Boral . . . . . . . . . . . . . . . . . . . . . . . . 26,256 $ 37,310
Forbo Holding . . . . . . . . . . . . . . . . . . . . 160 69,869
Sekisui Chemical . . . . . . . . . . . . . . . . . . . 7,000 46,984
_____________
154,163
_____________
Capital Goods--9.0% Federal-Mogul . . . . . . . . . . . . . . . . . . . . 55,500 3,302,250
Ingersoll-Rand . . . . . . . . . . . . . . . . . . . . 42,400 1,990,150
Lockheed Martin . . . . . . . . . . . . . . . . . . . 90,900 7,703,775
LucasVarity, ADR . . . . . . . . . . . . . . . . . . . 159,800 5,353,300
Northrop Grumman . . . . . . . . . . . . . . . . . . . 48,100 3,517,313
United States Filter . . . . . . . . . . . . . . . . . 295,900 (a) 6,768,712
United Technologies . . . . . . . . . . . . . . . . . 133,400 14,507,250
Waste Management . . . . . . . . . . . . . . . . . . . 287,212 13,391,260
_____________
56,534,010
_____________
Chemicals--.1% AKZO Nobel, ADR . . . . . . . . . . . . . . . . . . . 1,800 80,325
Air Liquide . . . . . . . . . . . . . . . . . . . . . 537 98,533
Alstom, ADR . . . . . . . . . . . . . . . . . . . . . 1,905 (a) 44,291
BOC Group . . . . . . . . . . . . . . . . . . . . . . 5,229 74,512
Bayer . . . . . . . . . . . . . . . . . . . . . . . . 2,750 114,831
_____________
412,492
_____________
Construction & Housing--.0% Hollandsche Beton Groep . . . . . . . . . . . . . . . 3,182 39,336
Nishimatsu Construction . . . . . . . . . . . . . . . 8,000 46,631
Tarkett . . . . . . . . . . . . . . . . . . . . . . . 1,000 12,188
_____________
98,155
_____________
Consumer Durables--3.2% Ford Motor . . . . . . . . . . . . . . . . . . . . . . 129,800 7,617,638
Lear . . . . . . . . . . . . . . . . . . . . . . . . . 32,300 (a) 1,243,550
Republic Industries . . . . . . . . . . . . . . . . . 425,600 (a) 6,277,600
Whirpool . . . . . . . . . . . . . . . . . . . . . . . 95,300 5,277,238
_____________
20,416,026
_____________
Consumer Non-Durables--8.9% General Mills . . . . . . . . . . . . . . . . . . . . 78,000 6,064,500
Harcourt General . . . . . . . . . . . . . . . . . . . 194,200 10,329,012
Hasbro . . . . . . . . . . . . . . . . . . . . . . . . 143,000 5,165,875
Kimberly-Clark . . . . . . . . . . . . . . . . . . . . 272,800 14,867,600
Loews . . . . . . . . . . . . . . . . . . . . . . . . 158,100 15,533,325
Mattel . . . . . . . . . . . . . . . . . . . . . . . . 121,800 2,778,563
Nike, Cl. B . . . . . . . . . . . . . . . . . . . . . 42,000 1,703,625
RJR Nabisco Holdings . . . . . . . . . . . . . . . . . 3,500 103,906
_____________
56,546,406
_____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- _____________ _____________
Consumer Services--13.6% ACNielsen . . . . . . . . . . . . . . . . . . . . . . 114,500 (a) $3,234,625
Abercrombie & Fitch, Cl. A . . . . . . . . . . . . . . 1 (a) 71
American Stores . . . . . . . . . . . . . . . . . . . 81,400 3,006,713
Circuit City Stores-Circuit City Group . . . . . . . . 247,700 12,369,519
Deluxe . . . . . . . . . . . . . . . . . . . . . . . . 112,300 4,105,969
Dun & Bradstreet . . . . . . . . . . . . . . . . . . . 144,100 4,548,156
Federated Department Stores . . . . . . . . . . . . . 234,500 (a) 10,215,406
First Data . . . . . . . . . . . . . . . . . . . . . . 363,600 11,521,575
Limited . . . . . . . . . . . . . . . . . . . . . . . 355,000 10,339,375
McDonald's . . . . . . . . . . . . . . . . . . . . . . 150,800 11,555,050
Tele-Communications, Cl. A . . . . . . . . . . . . . . 152,000 (a) 8,407,500
Tricon Global Restaurants . . . . . . . . . . . . . . 136,100 (a) 6,822,012
_____________
86,125,971
_____________
Data Processing--.0% Canon . . . . . . . . . . . . . . . . . . . . . . . . 4,000 85,313
_____________
Electrical & Electronics--.1% Mabuchi Motor . . . . . . . . . . . . . . . . . . . . 1,000 76,393
Murata Manufacturing . . . . . . . . . . . . . . . . . 3,000 124,260
Rohm . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 90,877
Siemens . . . . . . . . . . . . . . . . . . . . . . . 1,900 122,628
Toshiba . . . . . . . . . . . . . . . . . . . . . . . 10,000 59,437
_____________
473,595
_____________
Energy--11.0% Canadian Pacific . . . . . . . . . . . . . . . . . . . 300,000 5,662,500
Conoco, Cl. A . . . . . . . . . . . . . . . . . . . . 239,000 (a) 4,989,125
ENI, ADS . . . . . . . . . . . . . . . . . . . . . . . 1,800 121,950
Elf Aquitaine, ADS . . . . . . . . . . . . . . . . . . 103,800 5,877,675
Exxon . . . . . . . . . . . . . . . . . . . . . . . . 86,900 6,354,563
Mobil . . . . . . . . . . . . . . . . . . . . . . . . 220,000 19,167,500
Phillips Petroleum . . . . . . . . . . . . . . . . . . 153,600 6,547,200
Repsol, ADR . . . . . . . . . . . . . . . . . . . . . 2,500 136,563
Schlumberger . . . . . . . . . . . . . . . . . . . . . 141,400 6,522,075
Tosco . . . . . . . . . . . . . . . . . . . . . . . . 258,400 6,686,100
Unocal . . . . . . . . . . . . . . . . . . . . . . . . 253,000 7,384,438
YPF Sociedad Anonima, ADS . . . . . . . . . . . . . . 2,300 64,256
_____________
69,513,945
_____________
Energy Equipment & Services--.0% Fred Olson Energy . . . . . . . . . . . . . . . . . . 2,200 (a) 13,547
_____________
Financial Services--16.5% Aetna . . . . . . . . . . . . . . . . . . . . . . . . 71,500 5,621,688
Allmerica Financial . . . . . . . . . . . . . . . . . 97,600 5,648,600
Allstate . . . . . . . . . . . . . . . . . . . . . . . 339,900 13,128,637
American General . . . . . . . . . . . . . . . . . . . 75,000 5,850,000
American International Group . . . . . . . . . . . . . 118,350 11,435,569
Chase Manhattan . . . . . . . . . . . . . . . . . . . 258,000 17,560,125
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- _____________ _____________
Financial Services (continued) Credit Saison . . . . . . . . . . . . . . . . . . . . 4,000 $ 98,384
Equitable Cos. . . . . . . . . . . . . . . . . . . . . 117,100 6,777,162
Everest Reinsurance Holdings . . . . . . . . . . . . . 162,400 6,323,450
First Union . . . . . . . . . . . . . . . . . . . . . 220,828 13,429,103
Hartford Financial Services Group . . . . . . . . . . 107,100 5,877,113
Henderson Investment . . . . . . . . . . . . . . . . . 70,000 41,112
Nichiei . . . . . . . . . . . . . . . . . . . . . . . 1,380 109,688
Republic New York . . . . . . . . . . . . . . . . . . 130,000 5,923,125
Washington Mutual . . . . . . . . . . . . . . . . . . 174,786 6,674,640
_____________
104,498,396
_____________
Foods & Related Products--.0% Barry Callebaut . . . . . . . . . . . . . . . . . . . 169 38,375
Bongrain . . . . . . . . . . . . . . . . . . . . . . . 140 62,654
Kao . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 90,082
_____________
191,111
_____________
Forest & Paper Products--.6% Buhrmann . . . . . . . . . . . . . . . . . . . . . . . 3,040 54,427
Fletcher Challenge Paper . . . . . . . . . . . . . . . 47,061 31,450
Fort James . . . . . . . . . . . . . . . . . . . . . . 86,000 3,440,000
_____________
3,525,877
_____________
Health Care--4.5% Amgen . . . . . . . . . . . . . . . . . . . . . . . . 1,600 (a) 167,300
Columbia/HCA Healthcare . . . . . . . . . . . . . . . 265,500 6,571,125
Hoechst . . . . . . . . . . . . . . . . . . . . . . . 1,900 78,824
Johnson & Johnson . . . . . . . . . . . . . . . . . . 75,000 6,290,625
Medeva . . . . . . . . . . . . . . . . . . . . . . . . 13,000 23,061
Merck KGaA . . . . . . . . . . . . . . . . . . . . . . 2,100 94,561
Pharmacia & Upjohn . . . . . . . . . . . . . . . . . . 153,200 8,674,950
Tenet Healthcare . . . . . . . . . . . . . . . . . . . 243,000 (a) 6,378,750
Yamanouchi Pharmaceutical . . . . . . . . . . . . . . 3,000 96,441
_____________
28,375,637
_____________
Industrial Components--.0% LucasVarity, ADS . . . . . . . . . . . . . . . . . . . 19,020 63,224
Michelin . . . . . . . . . . . . . . . . . . . . . . . 1,018 40,729
Minebea . . . . . . . . . . . . . . . . . . . . . . . 8,000 91,425
Morgan Crucible . . . . . . . . . . . . . . . . . . . 13,222 60,501
_____________
255,879
_____________
Insurance--2.3% CIGNA . . . . . . . . . . . . . . . . . . . . . . . . 188,500 14,573,406
Dai-Tokyo Fire & Marine Insurance . . . . . . . . . . 14,000 49,457
Royal & Sun Alliance Insurance . . . . . . . . . . . . 11,502 93,582
_____________
14,716,445
_____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- _____________ _____________
Leisure & Tourism--.0% NAMCO . . . . . . . . . . . . . . . . . . . . . . . . 2,000 $ 40,095
Stakis . . . . . . . . . . . . . . . . . . . . . . . . 40,000 66,316
_____________
106,411
_____________
Machinery--.1% Fuji Machine Manufacturing . . . . . . . . . . . . . . 2,000 63,057
GEA . . . . . . . . . . . . . . . . . . . . . . . . . 2,100 63,419
Laird Group . . . . . . . . . . . . . . . . . . . . . 11,400 30,807
Mitsubishi Heavy Industries . . . . . . . . . . . . . 13,000 50,517
Scania AB . . . . . . . . . . . . . . . . . . . . . . 1,800 33,010
Stork . . . . . . . . . . . . . . . . . . . . . . . . 2,250 51,433
Sulzer . . . . . . . . . . . . . . . . . . . . . . . . 120 73,013
_____________
365,256
_____________
Merchandising--.6% Guyenne et Gascogne . . . . . . . . . . . . . . . . . 170 76,263
Ito-Yokado . . . . . . . . . . . . . . . . . . . . . . 1,000 69,769
Matsumotokiyoshi . . . . . . . . . . . . . . . . . . . 2,000 77,188
Safeway . . . . . . . . . . . . . . . . . . . . . . . 19,688 98,575
Storehouse . . . . . . . . . . . . . . . . . . . . . . 26,026 58,682
Venator Group . . . . . . . . . . . . . . . . . . . . 577,200 (a) 3,715,725
_____________
4,096,202
_____________
Metals--.0% China Steel, ADR . . . . . . . . . . . . . . . . . . . 7 (a,b) 88
KM Europa Metal . . . . . . . . . . . . . . . . . . . 400 23,055
Pechiney A . . . . . . . . . . . . . . . . . . . . . . 1,100 35,937
Rio Tinto . . . . . . . . . . . . . . . . . . . . . . 7,000 81,121
Usinor . . . . . . . . . . . . . . . . . . . . . . . . 4,300 47,763
_____________
187,964
_____________
Miscellaneous Materials--.0% Bunzl . . . . . . . . . . . . . . . . . . . . . . . . 19,000 74,025
_____________
Multi-Industry--.0% First Philippine Holdings . . . . . . . . . . . . . . 8,400 4,535
Hunter Douglas . . . . . . . . . . . . . . . . . . . . 2,428 80,472
Orkla AS-B . . . . . . . . . . . . . . . . . . . . . . 2,400 31,287
Pacific Dunlop . . . . . . . . . . . . . . . . . . . . 27,686 44,768
Tomkins . . . . . . . . . . . . . . . . . . . . . . . 25,164 118,275
_____________
279,337
_____________
Recreation--.0% Sankyo . . . . . . . . . . . . . . . . . . . . . . . . 2,000 33,383
_____________
Technology--7.5% Compaq Computer . . . . . . . . . . . . . . . . . . . 204,900 8,592,994
Hewlett-Packard . . . . . . . . . . . . . . . . . . . 145,600 9,946,300
International Business Machines . . . . . . . . . . . 64,100 11,842,475
Learning Co. . . . . . . . . . . . . . . . . . . . . . 114,900 (a) 2,980,219
Sun Microsystems . . . . . . . . . . . . . . . . . . . 161,100 (a) 13,794,188
_____________
47,156,176
_____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- _____________ _____________
Telecommunications--.1% Hellenic Tellecommunication Organization . . . . . . . 3,888 (a) $ 51,516
Royal PTT Nederland, ADS . . . . . . . . . . . . . . . 2,013 101,153
SK Telecom . . . . . . . . . . . . . . . . . . . . . . 6 4,448
Swisscom . . . . . . . . . . . . . . . . . . . . . . . 150 (a) 62,773
TNT Post Group . . . . . . . . . . . . . . . . . . . . 1,076 34,970
Telecom Italia . . . . . . . . . . . . . . . . . . . . 21,000 131,977
Telefonica del Peru, ADS . . . . . . . . . . . . . . . 2,900 36,794
_____________
423,631
_____________
Transportation--1.4% British Airways . . . . . . . . . . . . . . . . . . . 1,911 12,839
British Airways, ADR . . . . . . . . . . . . . . . . . 360 24,413
Deutsche Lufthansa . . . . . . . . . . . . . . . . . . 2,900 64,073
Union Pacific . . . . . . . . . . . . . . . . . . . . 190,800 8,597,925
_____________
8,699,250
_____________
Utilities--9.3% AT&T . . . . . . . . . . . . . . . . . . . . . . . . . 96,400 7,254,100
Bell Atlantic . . . . . . . . . . . . . . . . . . . . 1,200 63,600
CMS Energy . . . . . . . . . . . . . . . . . . . . . . 165,000 7,992,188
Duke Energy . . . . . . . . . . . . . . . . . . . . . 51,500 3,299,219
Edison International . . . . . . . . . . . . . . . . . 202,300 5,639,113
Endesa . . . . . . . . . . . . . . . . . . . . . . . . 4,200 111,450
Entergy . . . . . . . . . . . . . . . . . . . . . . . 220,900 6,875,513
GTE . . . . . . . . . . . . . . . . . . . . . . . . . 96,500 6,507,719
Gas Y Electridad . . . . . . . . . . . . . . . . . . . 1,022 102,419
Hongkong Electric Holdings . . . . . . . . . . . . . . 24,000 72,801
Illinova . . . . . . . . . . . . . . . . . . . . . . . 4,400 110,000
Pinnacle West Capital . . . . . . . . . . . . . . . . 126,900 5,377,388
PowerGen . . . . . . . . . . . . . . . . . . . . . . . 9,221 120,771
SBC Communications . . . . . . . . . . . . . . . . . . 160,600 8,612,175
Southern . . . . . . . . . . . . . . . . . . . . . . . 229,700 6,675,656
VEBA . . . . . . . . . . . . . . . . . . . . . . . . . 2,450 146,653
Viag . . . . . . . . . . . . . . . . . . . . . . . . . 40 23,463
_____________
58,984,228
_____________
Wholesale &
International Trade--.0% Kesko . . . . . . . . . . . . . . . . . . . . . . . . 4,500 67,099
Marubeni . . . . . . . . . . . . . . . . . . . . . . . 22,000 37,693
_____________
104,792
_____________
TOTAL COMMON STOCKS
(cost $545,529,463) . . . . . . . . . . . . . . . $618,849,112
_____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
Preferred Stocks--1.8% Shares Value
- ------------------------------------------------------- _____________ _____________
Areospace &
Military Technology--.0% Rheinmetall . . . . . . . . . . . . . . . . . . . . . 1,500 $ 28,188
_____________
Miscellaneous--1.8% News . . . . . . . . . . . . . . . . . . . . . . . . . 458,000 11,306,875
_____________
Textiles & Apparel--.0% Hugo Boss . . . . . . . . . . . . . . . . . . . . . . 12 23,235
_____________
TOTAL PREFERRED STOCKS
(cost $7,782,138) . . . . . . . . . . . . . . . . $ 11,358,298
_____________
TOTAL INVESTMENTS (cost $553,311,601). . . . . . . . . . . . . . . . . . . . . . . . . . . 99.6% $630,207,410
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4% $ 2,782,359
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $632,989,769
_______ _____________
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 December 31, 1998, these
securities amounted to $2,502.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998
Cost Value
_____________ _____________
ASSETS: Investments in securities--See Statement of Investments . . $553,311,601 $630,207,410
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 4,378,092
Cash denominated in foreign currencies . . . . . . . . . 439,328 438,739
Receivable for investment securities sold . . . . . . . . 6,010,469
Dividends receivable . . . . . . . . . . . . . . . . . . 796,789
Receivable for shares of Beneficial Interest subscribed . . 68,879
_____________
641,900,378
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 596,046
Due to Distributor . . . . . . . . . . . . . . . . . . . 8,210
Payable for investment securities purchased . . . . . . . 6,876,416
Payable for shares of Beneficial Interest redeemed . . . 1,428,937
Loan commitment fees payable--Note 4 . . . . . . . . . . 1,000
_____________
8,910,609
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $632,989,769
_____________
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $550,318,027
Accumulated undistributed investment income--net . . . . 225,958
Accumulated net realized gain (loss) on investments . . . 5,548,532
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions . . . 76,897,252
_____________
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $632,989,769
_____________
</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 . . . . . . . . . . . . . . . . . $555,862,705 $2,032,806 $195,003 $841,651 $74,057,604
Shares Outstanding . . . . . . . . . . . . . 18,999,543 69,635 6,680 28,778 2,533,094
NET ASSET VALUE PER SHARE. . . . . . . . . . $29.26 $29.19 $29.19 $29.25 $29.24
_______ _______ _______ _______ _______
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1998
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $215,646 foreign taxes
withheld at source) . . . . . . . . . . . . . $10,874,955
Interest . . . . . . . . . . . . . . . . . . . 758,516
_____________
Total Income . . . . . . . . . . . . . . . $11,633,471
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . 5,950,806
Distribution and service fees--Note 2(b) . . . . 1,582,709
Loan commitment fees--Note 4 . . . . . . . . . . 4,120
_____________
Total Expenses . . . . . . . . . . . . . . 7,537,635
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,095,836
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments and
foreign currency transactions . . . . . . . . $48,918,026
Net realized gain (loss) on forward currency
exchange contracts . . . . . . . . . . . . . . (81,199)
_____________
Net Realized Gain (Loss) . . . . . . . . . 48,836,827
Net unrealized appreciation (depreciation) on
investments and foreign currency transactions . (8,172,759)
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 40,664,068
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $44,759,904
____________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
December 31, 1998(1) December 31, 1997(2)
_________________ _________________
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,095,836 $ 4,258,431
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 48,836,827 134,796,722
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . (8,172,759) 2,183,414
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . 44,759,904 141,238,567
_____________ _____________
DIVIDENDS TO SHAREHOLDERS:
From investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,168,010) (3,766,094)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (377) ---
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (52) ---
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,978) (124,133)
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . (528,055) (593,353)
In excess of investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --- (139,777)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --- (4,607)
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . --- (22,022)
From net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51,737,780) (117,738,346)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (143,476) ---
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,130) ---
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (78,806) (2,973,474)
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,909,155) (16,088,315)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (62,587,819) (141,450,121)
_____________ _____________
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended Year Ended
December 31, 1998(1) December 31, 1997(2)
_________________ _________________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,520,325 145,936,701
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,307,043 ---
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235,931 ---
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276,835 1,897,752
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,947,289 22,101,585
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,635,415 104,964,016
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113,872 ---
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,479 ---
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,711 3,102,096
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,196,240 16,151,789
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (155,282,068) (152,159,333)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (236,332) ---
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34,016) ---
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (363,657) (15,558,384)
Institutional shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,513,042) (29,635,346)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . (16,099,975) 96,800,876
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . (33,927,890) 96,589,322
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 666,917,659 570,328,337
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $632,989,769 $666,917,659
_____________ _____________
UNDISTRIBUTED INVESTMENT INCOME (DISTRIBUTIONS IN EXCESS OF INVESTMENT INCOME)--NET . $ 225,958 $ (166,406)
_____________ _____________
- ------------------------
(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.
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended Year Ended
December 31, 1998(1) December 31, 1997(2)
_________________ _________________
CAPITAL SHARE TRANSACTIONS:
Class A Shares
_______________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,027,578 4,295,680
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 1,522,707 3,583,594
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,997,829) (4,447,295)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . (447,544) 3,431,979
__________ __________
Class B Shares
_______________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,785 --
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 3,915 --
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,065) --
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . 69,635 --
__________ __________
Class C Shares
______________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,514 --
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 358 --
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,192) --
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . 6,680 --
__________ __________
Class R Shares
______________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,127 54,551
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 2,869 105,597
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,007) (512,826)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . (11) (352,678)
__________ __________
Institutional Shares
___________________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232,611 629,753
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 240,213 551,297
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (611,875) (875,068)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . (139,051) 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.
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
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)
______________________________________________________
Year Ended December 31,
______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994(2)
_______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $30.11 $30.40 $30.13 $24.56 $27.80
_______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .19 .22 .31 .41 .42
Net realized and unrealized gain (loss) on investments . 1.95 6.98 6.03 8.24 (.29)
_______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . 2.14 7.20 6.34 8.65 .13
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.17) (.23) (.30) (.45) (.40)
Dividends in excess of investment income--net . . . . . . -- (.01) -- -- --
Dividends from net realized gain on investments . . . . . (2.82) (7.25) (5.77) (2.63) (2.97)
_______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . (2.99) (7.49) (6.07) (3.08) (3.37)
_______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . $29.26 $30.11 $30.40 $30.13 $24.56
_______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . 7.06%(3) 25.21% 21.44% 35.56% .38%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . 1.15% 1.14% 1.13% 1.13% 1.11%
Ratio of net investment income to average net assets . . .61% .64% .96% 1.43% 1.47%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . -- .01% .02% .02% .01%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 84.32% 92.99% 88.46% 54.42% 73.00%
Net Assets, end of period (000's Omitted) . . . . . . . . $555,863 $585,624 $486,816 $401,674 $317,868
- -----------------------------
</TABLE>
(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, Investor 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 serves as the Fund's investment manager.
(3) Exclusive of sales load.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
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 December 31, 1998. This information has
been derived from the Fund's financial statements.
Class B Shares
_________________
Period Ended
PER SHARE DATA: December 31, 1998
_________________
<S> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $29.04
________
Investment Operations:
Investment (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.02)
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . 3.00
________
Total from Investment Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.98
________
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.01)
Dividends from net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.82)
________
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.83)
________
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $29.19
________
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.24%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.82%(2)
Ratio of investment (loss) to average net assets . . . . . . . . . . . . . . . . . . . . . . . . . . (.14%)(2)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.32%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,033
- -----------------------------
(1) Exclusive of sales load.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
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 December 31, 1998. This information has
been derived from the Fund's financial statements.
Class C Shares
_________________
Period Ended
PER SHARE DATA: December 31, 1998
_________________
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $29.04
________
Investment Operations:
Investment (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.02)
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . 3.00
________
Total from Investment Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.98
________
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.01)
Dividends from net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.82)
________
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.83)
________
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $29.19
________
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.24%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.82%(2)
Ratio of investment (loss) to average net assets . . . . . . . . . . . . . . . . . . . . . . . . . . (.13%)(2)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.32%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $195
- -----------------------------
(1) Exclusive of sales load.
(2) Not annualized.
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
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.
Class R Shares
____________________________________________________
Period Ended
Year Ended December 31, December 31
______________________________________
PER SHARE DATA: 1998(1) 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 . . . . . . . . . . . . . . . . . . .26 .33 .36 .62 .29
Net realized and unrealized gain (loss) on investments . . 1.95 6.90 6.08 8.16 (.83)
_______ _______ _______ _______ ________
Total from Investment Operations . . . . . . . . . . . . . 2.21 7.23 6.44 8.78 (.54)
_______ _______ _______ _______ ________
Distributions:
Dividends from investment income--net . . . . . . . . . . . (.25) (.32) (.39) (.53) (.38)
Dividends in excess of investment income--net . . . . . . . --- (.01) --- --- ---
Dividends from net realized gain on investments . . . . . . (2.82) (7.25) (5.77) (2.63) (2.97)
_______ _______ _______ _______ ________
Total Distributions . . . . . . . . . . . . . . . . . . . . (3.07) (7.58) (6.16) (3.16) (3.35)
_______ _______ _______ _______ ________
Net asset value, end of period . . . . . . . . . . . . . . $29.25 $30.11 $30.46 $30.18 $24.56
_______ _______ _______ _______ ________
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . . 7.01% 25.54% 21.74% 36.05% (2.31%)(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . .90% .89% .88% .88% .35%(5)
Ratio of net investment income to average net assets . . . .82% .88% 1.23% 1.93% .70%(5)
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . . -- .01% .02% .02% .01%(5)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . 84.32% 92.99% 88.46% 54.42% 73.00%
Net Assets, end of period (000's Omitted) . . . . . . . . . $842 $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 serves as the Fund's investment manager.
(5) Not annualized.
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
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.
Institutional Shares
______________________________________________________
Year Ended December 31,
______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994*
_______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . $30.10 $30.38 $30.12 $24.56 $27.80
_______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . .22 .26 .36 .47 .47
Net realized and unrealized gain (loss) on investments . . 1.95 6.98 6.01 8.20 (.31)
_______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . 2.17 7.24 6.37 8.67 .16
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . . (.21) (.26) (.34) (.48) (.43)
Dividends in excess of investment income--net . . . . . . . -- (.01) -- -- --
Dividends from net realized gain on investments . . . . . . (2.82) (7.25) (5.77) (2.63) (2.97)
_______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . . (3.03) (7.52) (6.11) (3.11) (3.40)
_______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . $29.24 $30.10 $30.38 $30.12 $24.56
_______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . . 7.17% 25.34% 21.57% 35.60% .49%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . 1.05% 1.04% 1.03% 1.03% 1.02%
Ratio of net investment income to average net assets . . . .71% .74% 1.07% 1.53% 1.57%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . . -- .01% .02% .02% .01%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . 84.32% 92.99% 88.46% 54.42% 73.00%
Net Assets, end of period (000's Omitted) . . . . . . . . . $74,058 $80,427 $71,894 $75,607 $59,435
- -----------------------------
</TABLE>
* Prior to April 4, 1994, The Boston Company Advisors, Inc. served as the Fund's
investment adviser. From April 4, 1994 through October 16, 1994, Mellon Bank,
N.A. served as the Fund's investment manager. Effective October 17, 1994, The
Dreyfus Corporation serves as the Fund's investment manager.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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, as amended (the "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
(the "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 (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. At December 31, 1998, there were no open forward currency exchange
contracts.
(E) DISTRIBUTIONS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
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 of 1986, as
amended (the "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 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
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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) . Effective July 1, 1998, each
trustee receives $40,000 per year, plus $5,000 for each joint Board meeting of
The Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel Tax-Free Municipal Funds, and
The Dreyfus/Laurel Funds Trust (the "Dreyfus/Laurel Funds") attended, $2,000 for
separate committee meetings attended which are not held in conjunction with a
regularly scheduled board meeting and $500 for Board meetings and separate
committee meetings attended that are conducted by telephone and is reimbursed
for travel and out-of-pocket expenses. The Chairman of the Board receives an
additional 25% of such compensation (with the exception of reimbursable amounts)
. These fees pertain to the Dreyfus/Laurel Funds and are charged and allocated
to each series based on net assets. In the event that there is a joint committee
meeting of the Dreyfus/Laurel Funds and the Dreyfus High Yield Strategies Fund,
the $2,000 fee will be allocated between the Dreyfus/Laurel Funds and the
Dreyfus High Yield Strategies Fund. 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.
Prior to July 1, 1998 each trustee received $27,000 per year, $1,000 for each
Board meeting attended and $750 for each Audit Committee meeting attended and
was reimbursed for travel and out-of-pocket expenses. The Chairman of the Board
received an additional annual fee of $25,000 per year. These fees pertained to
the Dreyfus/Laurel Funds. (The $1,000 attendance fee and reimbursement of
meeting expenses were also borne pro rata by Dreyfus High Yield Strategies Fund)
. These fees and expenses were 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, were in fact paid directly by the Manager to the
non-interested Trustees.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $29,358 during the period ended December 31, 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 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. During the period
ended December 31, 1998, Class A, Class B, Class C and Institutional shares were
charged $1,406,056, $8,452, $1,020 and $112,687, respectively, pursuant to the
Plan. During the period ended December 31, 1998, Class B and Class C shares were
charged $2,818 and $340, respectively, pursuant to the service plan.
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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. 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.
Under its terms, the Plan and service plan shall remain in effect from year to
year, provided such continuance is approved annually by a vote of majority of
those Trustees who are not "interested persons" of the Trust and who have no
direct or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended December 31, 1998 amounted to $545,729,997 and $619,683,077,
respectively.
At December 31, 1998, accumulated net unrealized appreciation on investments
was $76,895,809, consisting of $103,004,088 gross unrealized appreciation and
$26,108,279 gross unrealized depreciation.
At December 31, 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
December 31, 1998, the Fund did not borrow under the Facility.
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
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INDEPENDENT AUDITORS' REPORT
THE BOARD OF TRUSTEES AND SHAREHOLDERS
THE DREYFUS/LAUREL FUNDS TRUST:
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier Core Value Fund of
The Dreyfus/Laurel Funds Trust as of December 31, 1998, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the periods presented herein. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1998, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Core Value Fund of The Dreyfus/Laurel Funds Trust as of December
31, 1998, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and its
financial highlights for each of the periods presented herein, in conformity
with generally accepted accounting principles.
New York, New York
February 19, 1999
DREYFUS PREMIER CORE VALUE FUND
(FORMERLY DREYFUS CORE VALUE FUND)
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IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal Tax purposes the Fund hereby designates $2.086 per share as a
long-term capital gain distribution paid on December 24, 1998 and also
designates $.567 per share as a long-term capital gain distribution of the $.795
per share paid on March 31, 1998.
The Fund also designates 100% of the ordinary dividends paid during the fiscal
year ended December 31, 1998 as qualifying for the corporate dividends received
deduction.
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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. 312/712AR9812
Annual Report
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DREYFUS PREMIER
CORE VALUE FUND
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December 31, 1998
[reg.tm logo]
[Dreyfus lion/2hres logo]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
PREMIER LIMITED TERM HIGH INCOME FUND CLASS A SHARES, CLASS B
SHARES, CLASS C SHARES AND CLASS R SHARES AND THE MERRILL LYNCH
HIGH YIELD MASTER II INDEX
EXHIBIT A:
DREYFUS DREYFUS DREYFUS DREYFUS
PREMIER PREMIER PREMIER PREMIER
MERRILL LIMITED LIMITED LIMITED LIMITED
LYNCH TERM HIGH TERM HIGH TERM HIGH TERM HIGH
HIGH INCOME INCOME INCOME INCOME
YIELD FUND FUND FUND FUND
PERIOD MASTER II (CLASS A (CLASS B (CLASS C (CLASS R
INDEX* SHARES) SHARES) SHARES) SHARES)
6/2/97 10,000 9,549 10,000 10,000 10,000
6/30/97 10,155 9,620 10,069 10,067 10,076
9/30/97 10,598 9,971 10,422 10,422 10,458
12/31/9 10,856 10,063 10,504 10,497 10,544
3/31/98 11,179 10,449 10,894 10,871 10,956
6/30/98 11,352 10,602 11,039 11,018 11,123
9/30/98 10,876 10,057 10,458 10,423 10,557
12/31/98 11,176 10,053 10,078 10,399 10,559
*Source: Merrill Lynch, Pierce, Fenner and Smith Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS PREMIER CORE VALUE FUND CLASS A SHARES AND THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
DREYFUS
PREMIER CORE STANDARD & POOR'S
PERIOD VALUE FUND 500 COMPOSITE
(CLASS A SHARES) STOCK PRICE INDEX*
12/31/88 9,424 10,000
12/31/89 11,776 13,163
12/31/90 10,194 12,754
12/31/91 12,526 16,631
12/31/92 13,031 17,896
12/31/93 15,182 19,697
12/31/94 15,234 19,955
12/31/95 20,652 27,444
12/31/96 25,079 33,742
12/31/97 31,401 44,995
12/31/98 33,616 57,864
*Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PREMIER MANAGED INCOME FUND CLASS A SHARES
AND THE LEHMAN BROTHERS AGGREGATE BOND INDEX
EXHIBIT A:
DREYFUS PREMIER
MANAGED LEHMAN BROTHERS
PERIOD INCOME FUND AGGREGATE
(CLASS A SHARES) BOND INDEX*
12/31/88 9,549 10,000
12/31/89 10,080 11,453
12/31/90 10,523 12,479
12/31/91 12,315 14,476
12/31/92 13,395 15,548
12/31/93 15,342 17,064
12/31/94 14,554 16,566
12/31/95 17,075 19,626
12/31/96 17,658 20,339
12/31/97 19,388 22,302
12/31/98 20,338 24,240
*Source: Lehman Brothers
