Dreyfus Premier Limited Term High Income Fund
SEMIANNUAL REPORT June 30, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
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.
<PAGE>
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
15 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
19 Financial Highlights
21 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
<PAGE>
The Fund
Dreyfus Premier
Limited Term High Income Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Limited
Term High Income Fund, covering the six-month period from January 1, 1999
through June 30, 1999. Inside, you'll find valuable information about how the
fund was managed during the reporting period, including a discussion with Roger
King, portfolio manager and a member of the Dreyfus Taxable Fixed Income Team.
The past six months have produced mixed results for fixed-income investors.
That' s because economic growth has been stronger than many analysts expected,
fueling fears that inflation pressures may re-emerge. Overseas economies that
had been in recession -- including Japan and the rest of Asia -- appear to have
begun to gain strength. The U.S. economy, which is now in its eighth year of
expansion, has also grown more robustly than expected. In response, the Federal
Reserve raised short-term interest rates modestly on June 30.
In this economic climate, U.S. Treasury securities declined, giving back all of
the gains they achieved during their remarkable rally last summer and fall.
Prices of other types of bonds fell less sharply or remained relatively
unchanged when investors shifted assets back into market sectors they had
previously avoided. Accordingly, many corporate bonds, mortgage-backed
securities, asset-backed securities and U.S. dollar-denominated foreign bonds
provided higher returns than U.S. Treasuries over the first half of 1999.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Limited Term High Income Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
July 15, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Roger King, Portfolio Manager Dreyfus Taxable Fixed Income Team
How did Dreyfus Premier Limited Term High Income Fund perform relative to its
benchmark?
For the six-month period ended June 30, 1999, Dreyfus Premier Limited Term High
Income Fund achieved a total return of 1.98% for Class A shares, 1.73% for Class
B shares, 1.60% for Class C shares and 2.10% for Class R shares.(1) This
compares to a 2.49% return for the fund's benchmark, the Merrill Lynch High
Yield Master II Index for the same period.(2)
Because of its restricted maturity and duration, we also gauge the fund's
performance against a shorter-term measure: the Dreyfus Customized Limited Term
High Yield Index, which produced a 3.22% return for the period.(3) This blended
index is composed of four shorter-term sub-indices of the Merrill Lynch High
Yield Master II Index.
We attribute the fund's relative performance to our risk management strategy. In
order to reduce volatility, we reduced the average maturity of our holdings and
improved the fund's credit quality. However, the overall market's strength was
concentrated in lower rated issues and in bonds with longer maturities.
What is the fund's investment approach?
The fund seeks high current income, while managing interest rate and credit
risk, by limiting the average effective portfolio maturity to four years or
less. However, there is no limit on the maturity of individual securities. In
most cases, shorter portfolio maturities are believed to help reduce interest
rate risk and credit risk.
When seeking high current income, we typically invest most of the fund's assets
in fixed-income securities of below-investment-grade credit quality. Issuers of
below-investment-grade securities may be in early stages of development or may
have highly leveraged balance The Fund
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
sheets. To compensate the buyer for the greater risk, these bonds must offer
higher yields than investment-grade bonds.
Our approach to selecting individual issues is based on careful credit analysis
- -- our projection of each issuer' s ability to meet its obligations as they
become due. We buy debt from a range of different types of issuers. For example,
new companies often must pay higher interest rates than more established firms.
We carefully evaluate these new issuers to find what we believe to be the most
creditworthy, best income-producing bonds. However, we primarily buy "seasoned"
bonds, which are issued by companies with an established track record, have been
outstanding for a number of years, and now have a shorter time remaining until
final maturity or projected retirement of the bond. We also seek out bonds that
are convertible into the issuer' s common stock, but probably will not be
converted because the target stock price is not likely to be reached.
What other factors influenced the fund's performance?
When the reporting period began, fixed-income investors were concerned that
economic weakness in overseas markets might reduce earnings growth for many U.S.
companies, including issuers of high yield bonds. It quickly became apparent,
however, that these fears were largely unfounded. In fact, the troubled
economies of Japan and Southeast Asia appeared to strengthen, while economic
growth in the U.S. showed few signs of abating.
In this environment, the high yield market recovered from the precipitous drop
it experienced in mid to late 1998. In fact, high yield bonds outperformed most
other fixed-income market segments over the first three months of 1999. In
addition, different segments of the high yield market recovered at different
times. Near-investment-grade bonds recovered first, followed by defensive
issues, including bonds of companies in industries seen to be resistant to
recession. Off-the-run issues -- securities that are bought and sold
infrequently -- rebounded next. Finally, the market's strength broadened to
market segments such as telecommunications and technology.
<PAGE>
During May and June, investor sentiment shifted from concern that the economy
might slow to fear that the economy might grow too quickly, awakening dormant
inflation pressures. As a result of these inflation fears, the Federal Reserve
Board increased short-term interest rates modestly on June 30. Accordingly,
toward the end of the reporting period, investor interest in high yield bonds
waned.
What is the fund's current strategy?
We have worked to position the portfolio to take better advantage of market
strengths and protect the portfolio from a potential recurrence of market
instability. In an attempt to reduce volatility, we have shortened the
portfolio's effective maturity and duration. We have improved the credit quality
of the issues in which we invest, moving to a focus on issues at the high single
B/BB level. We continue to place our industry focus on more defensive sectors --
sectors that tend to do well in all economic environments -- such as gaming,
entertainment and selected areas of financial services. These strategies are
designed to help us try to provide a high level of current income, while
limiting exposure to broader market risks.
July 15, 1999
(1) 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. HAD THESE
CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND INVESTMENT RETURN FLUCTUATE
SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
(2) 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 $100 MILLION PAR AMOUNT
OUTSTANDING AND GREATER THAN OR EQUAL TO ONE YEAR TO MATURITY.
(3) SOURCE: MERRILL LYNCH, PIERCE, FENNER AND SMITH, INC. -- THE DREYFUS
CUSTOMIZED LIMITED TERM HIGH YIELD INDEX IS COMPOSED OF FOUR SUB-INDICES OF THE
MERRILL LYNCH HIGH-YIELD MASTER INDEX II. THESE SUB-INDICES, BLENDED AND MARKET
WEIGHTED, ARE (I) BB-RATED, 1-3 YEARS, (II) B-RATED 1-3 YEARS, (III) BB-RATED,
3-5 YEARS, AND (IV) B-RATED, 3-5 YEARS. UNLIKE THE DREYFUS CUSTOMIZED LIMITED
TERM HIGH YIELD INDEX, WHICH IS COMPOSED OF BONDS RATED NO LOWER THAN "B", THE
FUND CAN INVEST IN BONDS WITH LOWER CREDIT RATINGS THAN "B" AND AS LOW AS "D".
The Fund
<PAGE>
STATEMENT OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal
BONDS AND NOTES--93.8% Amount ($) Value ($)
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<S> <C> <C>
AIRCRAFT & AEROSPACE--7.6%
Aircraft Lease Portfolio Securitisation 96-1,
Pass-Through Trust Ctfs.,
Cl. D, 12.75%, 2006 849,028 832,047
Airplanes Pass-Through Trust,
Pass-Through Ctfs.,
Ser. 1, Cl. D, 10.875%, 2019 22,000,000 21,984,600
AM General, Ser. B,
Sr. Notes, 12.875%, 2002 13,000,000 9,035,000
American Pacific,
Sr. Notes, 9.25%, 2005 7,000,000 7,175,000
Atlantic Coast Airlines,
Gtd. Pass-Through Ctfs.,
Ser. 1977-1D, 7.97%, 2000 974,272 (a) 983,377
Burke Industries,
Sr. Notes, 9.034%, 2007 7,000,000 (b) 5,293,750
Midway Airlines,
Pass-Through Ctfs.,
Ser. 1998-1, Cl. D, 8.86%, 2003 4,502,000 (a) 4,473,165
Sequa,
Sr. Sub. Notes, 9.375%, 2003 7,500,000 7,575,000
US Air,
Pass-Through Ctfs.:
Ser. 1993-A, Cl. A-3, 10.375%, 2013 11,000,000 11,988,372
Ser. 1993-A, Cl. A-2, 9.625%, 2003 3,855,000 3,971,290
73,311,601
AUTOMOTIVE--3.0%
Aetna Industries,
Sr. Notes, 11.875%, 2006 12,000,000 12,300,000
Hayes Lemmerz International,
Sr. Sub. Notes, 11%, 2006 7,000,000 7,612,500
Penda, Ser. B,
Sr. Notes, 10.75%, 2004 8,913,000 8,779,305
28,691,805
BROADCASTING--3.6%
Azteca Holdings, S.A. de C.V.,
Sr. Secured Notes, 11%, 2002 3,500,000 2,992,500
Capstar Broadcasting Partners,
Sr. Discount Notes, 12.75%, 2009 1,750,000 (c) 1,487,500
Lin Holdings,
Sr. Discount Notes, 10%, 2008 9,000,000 (c) 5,985,000
Paxson Communications,
Sr. Sub. Notes, 11.625%, 2002 8,000,000 8,360,000
<PAGE>
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
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BROADCASTING (CONTINUED)
Scandinavian Broadcasting System,
Conv. Sub. Notes, 7%, 2004 4,700,000 (a) 5,851,500
Spanish Broadcasting,
Sr. Notes, 12.5%, 2002 7,800,000 8,619,000
Univision Network Holding,
Sub. Notes, 7%, 2002 2,550,575 1,807,500
35,103,000
BUSINESS SERVICES--3.6%
Anacomp, Ser. C,
Sr. Sub. Notes, 10.875%, 2004 5,000,000 5,275,000
Corporate Express,
Conv. Notes, 4.5%, 2000 20,590,000 19,200,175
Pierce Leahy,
Sr. Notes, 11.125%, 2006 9,000,000 9,810,000
34,285,175
CABLE TELEVISION--8.9%
Adelphia Communications:
Deb., 11.875%, 2004 9,600,000 10,140,000
Ser. B, Sr. Notes, 9.5%, 2004 5,000,000 5,162,500
Diamond Cable Communications,
Sr. Discount Notes, 11.75%, 2005 9,950,000 (c) 9,004,750
Digital Television Service/Capital, Ser. B,
Sr. Sub. Notes, 12.5%, 2007 14,500,000 16,004,375
Galaxy Telecom,
Sr. Sub. Notes, 12.375%, 2005 9,400,000 10,434,000
NTL:
Sr. Discount Notes, 11.2%, 2007 7,000,000 (c) 6,413,750
Ser. A, Sr. Discount Notes, 12.75%, 2005 5,500,000 (c) 5,328,125
Ser. B, Sr. Discount Notes, 11.5%, 2006 3,864,000 (c) 3,390,660
Pegasus Media & Communications, Ser. B,
Sr. Sub. Notes, 12.5%, 2005 13,540,000 15,029,400
Telewest Communications,
Sr. Discount Notes, 11%, 2007 5,000,000 (c) 4,475,000
85,382,560
CASINOS & GAMING--2.0%
Circus Circus Enterprises,
Sr. Sub. Notes, 6.75%, 2003 1,500,000 1,431,954
Players International,
Sr. Notes, 10.875%, 2005 17,000,000 17,977,500
19,409,454
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
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- -
CHEMICALS--.9%
Arco Chemical,
Deb., 9.9%, 2000 2,600,000 2,623,988
ISP Holdings, Ser. B,
Sr. Notes, 9.75%, 2002 5,770,000 5,899,825
8,523,813
COMMERCIAL MORTGAGE
PASS-THROUGH CTFS.--1.0%
GS Mortgage Securities II,
Ser. 1999-FL2A, Cl. G, 7.094%, 2013 4,000,000 (a,b) 3,719,375
Nomura Depositor Trust:
Ser. 1998 ST I, Cl. B2, 9.25%, 2003 5,000,000 (a,b) 4,404,688
Ser. 1998 ST IA, Cl. B2A, 9.25%, 2003 2,000,000 (a,b) 1,761,875
9,885,938
CONSTRUCTION--1.6%
Aaf-Mcquay,
Sr. Notes, 8.875%, 2003 9,000,000 8,595,000
ICF Kaiser International,
Sr. Sub. Notes, 13%, 2003 11,050,000 (d) 6,685,250
15,280,250
CONSUMER--3.7%
BPC Holding, Ser. B,
Sr. Secured Notes, 12.5%, 2006 4,998,000 4,973,010
Coinmach, Ser. D,
Sr. Notes, 11.75%, 2005 14,915,000 16,145,487
Graham Packaging/GPC Capital, Ser. B,
Floating Interest Rate Sub.
Term Securities, 8.655%, 2008 1,500,000 (b) 1,372,500
Sharp Do Brazil,
Medium-Term Notes, 9.625%, 2000 3,500,000 (e) 1,566,250
Sweetheart Cup,
Gtd. Sr. Notes, 9.625%, 2000 11,500,000 11,298,750
35,355,997
ENERGY--1.8%
Clark USA, Ser. B,
Sr. Notes, 10.875%, 2005 5,386,000 4,719,482
Louis Dreyfus Natural Gas,
Sr. Sub. Notes, 9.25%, 2004 4,000,000 4,256,932
Statia Terminals, Ser. B,
First Mortgage, 11.75%, 2003 8,000,000 8,500,000
17,476,414
<PAGE>
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
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ENTERTAINMENT--2.5%
American Skiing, Ser. B,
Sr. Sub. Notes, 12%, 2006 22,915,000 17,529,975
United Artists Theatres, Ser. B,
Floating Rate Sr. Sub. Notes, 9.375%, 2007 8,000,000 (b) 6,360,000
23,889,975
FINANCIAL--.9%
Imperial Credit Capital Trust I, Ser. A,
Remarketed Par Securities, 10.25%, 2002 500,000 401,515
Loomis Fargo & Co.,
Sr. Notes, 10%, 2004 5,375,000 5,348,125
Reliance Group Holdings,
Sr. Sub. Deb., 9.75%, 2003 2,000,000 2,072,500
Republic National Bank of New York,
Deb., 9.65%, 2003 2,000,000 (a) 1,321,220
9,143,360
FOOD & BEVERAGES--4.6%
Chiquita Brands International,
Conv. Sub. Notes, 7%, 2001 7,950,000 7,403,438
Envirodyne Industries,
Sr. Notes, 10.25%, 2001 14,000,000 10,115,000
Pilgrims Pride,
Sr. Notes, 10.875%, 2003 2,000,000 2,050,000
Sun World International, Ser. B,
First Mortgage, 11.25%, 2004 23,500,000 24,792,500
44,360,938
FOREST PRODUCTS--7.7%
Maxxam Group Holdings,
Sr. Secured Notes, 12%, 2003 45,115,000 46,694,025
Repap New Brunswick,
Sr. Notes, 9%, 2004 5,500,000 5,156,250
Stone Container:
Sr. Sub. Notes, 12%, 1999 500,000 (b) 501,875
Sr. Sub. Deb., 12.75%, 2002 (Units) 10,925,000 (b,f) 10,979,625
Stone Container Finance,
Gtd. Sr. Notes, 11.5%, 2006 10,000,000 (a) 10,850,000
74,181,775
HEALTH CARE--.3%
Eye Care Centers of America,
Floating Interest Rate Sub.
Term Securities, 9.04%, 2008 3,000,000 (b) 2,505,000
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
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INDUSTRIAL--2.3%
Applied Extrusion Technology, Ser. B,
Sr. Notes, 11.5%, 2002 12,880,000 13,153,700
Hawk, Ser. B,
Sr. Notes, 10.25%, 2003 3,083,000 3,187,051
HCC Industries,
Gtd. Sr. Sub. Notes, 10.75%, 2007 6,360,000 5,883,000
Vicap, S.A. de C.V.,
Gtd. Sr. Notes, 10.25%, 2002 500,000 496,250
22,720,001
METALS--5.3%
Kaiser Aluminum & Chemical,
Sr. Notes, 9.875%, 2002 5,000,000 5,075,000
Northwestern Steel & Wire,
Sr. Notes, 9.5%, 2001 5,000,000 3,425,000
Renco Metals,
Sr. Notes, 11.5%, 2003 18,870,000 19,247,400
Republic Engineered Steels,
First Mortgage, 9.875%, 2001 22,290,000 23,237,325
50,984,725
PUBLISHING--.6%
Day International Group, Ser. B,
Sr. Notes, 11.125%, 2005 5,200,000 5,538,000
REAL ESTATE--.6%
Rockefeller Center Properties,
Conv. Deb., 0%, 2000 7,255,000 5,840,275
RETAIL--1.2%
Cafeteria Operators
(Gtd. by Furrs/Bishops Specialty Group),
Sr. Secured Notes, 12%, 2001 7,481,650 7,453,594
Michaels Stores,
Conv. Sr. Notes, 6.75%, 2003 4,000,000 3,985,000
11,438,594
SHIPPING--.7%
Eletson Holdings,
First Pfd. Ship Mortgage, 9.25%, 2003 1,750,000 1,651,562
Gearbulk Holdings,
Sr. Notes, 11.25%, 2004 2,000,000 2,065,000
Stena AB,
Sr. Notes, 10.5%, 2005 3,500,000 3,508,750
7,225,312
<PAGE>
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
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- -
SUPERMARKETS--1.2%
Pathmark Stores,
Discount Notes, 10.75%, 2003 4,000,000 (c) 3,980,000
Shoppers Food Warehouse,
Sr. Notes, 9.75%, 2004 7,400,000 7,936,500
11,916,500
TECHNOLOGY--3.1%
Baan,
Conv. Sub. Notes, 4.5%, 2001 10,000,000 9,175,000
Lam Research,
Conv. Notes, 5%, 2002 6,750,000 6,353,438
Unisys,
Sr. Notes, 11.75%, 2004 8,000,000 8,920,000
Viasystems,
Sr. Sub. Notes, 9.75%, 2007 5,750,000 5,060,000
29,508,438
TELECOMMUNICATIONS/CARRIERS--10.4%
GST USA,
Sr. Discount Notes, 13.875%, 2005 2,500,000 (c) 2,062,500
Hermes Europe Railtel,
Sr. Notes, 11.5%, 2007 14,750,000 15,598,125
Intermedia Communications,
Sr. Discount Notes, 12.5%, 2006 15,000,000 (c) 12,450,000
L-3 Communications, Ser. B,
Sr. Sub. Notes, 10.375%, 2007 9,750,000 10,249,688
MJD Communications,
Floating Rate Notes, 9.248%, 2008 9,000,000 (b) 9,033,750
Mobile Telecommunications Technology,
Sr. Notes, 13.5%, 2002 4,800,000 5,448,000
NEXTEL Communications,
Sr. Notes, 9.75%, 2004 19,500,000 19,938,750
Qwest Communications International, Ser. B,
Sr. Notes, 10.875%, 2007 15,000,000 16,912,500
Worldport International,
Sr. Notes, 11.688%, 1999 10,000,000 (a,b) 8,000,000
99,693,313
TEXTILES--.7%
Sassco Fashions,
Sr. Notes, 12.75%, 2004 5,700,000 5,500,500
Texfi Industries,
Sr. Sub. Deb., 8.75%, 1999 5,100,000 (d) 1,045,500
6,546,000
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
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- -
TRANSPORTATION--2.4%
MTL, Ser. B,
Floating Interest Rate Sub. Term Securities,
9.954%, 2006 5,000,000 (b) 4,775,000
Petro Stopping Centers/Financial,
Sr. Notes, 10.5%, 2007 7,800,000 8,229,000
Union Pacific,
Sub. Deb, 5.5%, 2033 4,348,000 3,183,011
ValuJet,
Sr. Notes, 10.25%, 2001 7,675,000 6,562,125
22,749,136
UTILITIES--.3%
Hidroelectrica Piedra Aguila,
Medium-Term Notes, 10.625%, 2001 7,000,000 (d) 2,817,500
WIRELESS COMMUNICATIONS--11.3%
Cencall Communications,
Sr. Notes, 10.125%, 2004 7,500,000 7,668,750
Clearnet Communications,
Sr. Discount Notes, 14.75%, 2005 19,600,000 (c) 18,032,000
Comunicacion Celular,
Sr. Discount Notes, 14.125%, 2005 13,250,000 (a,c) 8,032,812
Dial Call Communications,
Sr. Discount Notes, 10.25%, 2005 3,000,000 3,067,500
Microcell Telecommunications, Ser. B,
Sr. Discount Notes, 14%, 2006 10,000,000 (c) 8,125,000
Occidente y Caribe Celular, Ser. B,
Sr. Discount Notes, 14%, 2004 11,000,000 (c) 6,737,500
Omnipoint Communications,
Floating Rate Notes, 8.578%, 2006 4,924,387 (a,b) 4,924,387
Orion Network Systems,
Sr. Discount Notes, 12.5%, 2007 32,045,000 (c) 17,784,975
Pagemart Nationwide,
Sr. Discount Notes, 15%, 2005 13,500,000 (c) 11,947,500
WinStar Communications,
Sr. Discount Notes, 14%, 2005 23,000,000 (c) 20,240,000
WinStar Equipment,
Gtd. Sr. Notes, 12.5%, 2004 2,000,000 2,095,000
108,655,424
TOTAL BONDS AND NOTES
(cost $975,878,177) 902,420,273
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMMON STOCKS--.2% Shares Value
($)
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<S> <C> <C>
BROADCASTING--.1%
Spanish Broadcasting 428 256,800
CABLE TELEVISION--.0%
United International Holdings (warrants) 100 (g) 23,013
ENTERTAINMENT--.0%
Discovery Zone (warrants) 4,000 (a,g) 4
Discovery Zone, Cl. A (warrants) 37,400 (a,g) 37
Discovery Zone, Cl. B (warrants) 37,400 (a,g) 37
78
TELECOMMUNICATIONS--.1%
Worldport Communications (warrants) 161,871 (a,g) 971,226
WIRELESS COMMUNICATIONS--.0%
Comunicacion Celular (warrants) 1,750 (a,g) 122,719
TOTAL COMMON STOCK
(cost $551,556) 1,373,836
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PREFERRED STOCKS--3.4%
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BROADCASTING--2.8%
Spanish Broadcasting System:
Cum., $142.50 16,926 18,364,710
Cum., $142.50 8,317 (a) 9,023,945
27,388,655
ENTERTAINMENT--.6%
Newscorp Overseas,
Ser. A, Cum., $2.15625 216,973 5,437,886
TOTAL PREFERRED STOCKS
(cost $31,997,783) 32,826,541
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--1.1% Amount ($) Value ($)
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U.S. Government Agency;
Federal Farm Credit Bank,
4.5%, 7/1/1999
(cost $10,835,000) 10,835,000 10,835,000
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TOTAL INVESTMENTS (cost $1,019,262,516) 98.5% 947,455,650
CASH AND RECEIVABLES (NET) 1.5% 14,348,897
NET ASSETS 100.0% 961,804,547
(A) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT JUNE 30, 1999,
THESE SECURITIES AMOUNTED TO $64,440,367 OR 6.7% OF NET ASSETS.
(B) VARIABLE RATE SECURITY--INTEREST RATE SUBJECT TO PERIODIC CHANGE.
(C) ZERO COUPON UNTIL A SPECIFIED DATE AT WHICH TIME THE STATED COUPON RATE
BECOMES EFFECTIVE UNTIL MATURITY.
(D) NON-INCOME PRODUCING--SECURITY IN DEFAULT.
(E) REFLECTS DATE SECURITY CAN BE REDEEMED AT HOLDER'S OPTION; THE STATED
MATURITY DATE IS 10/30/2005.
(F) WITH SUPPLEMENTAL INTEREST CERTIFICATES ATTACHED.
(G) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 1,019,262,516 947,455,650
Cash 4,566,164
Interest and dividends receivable 22,562,875
Receivable for investment securities sold 3,133,900
Receivable for shares of Beneficial Interest subscribed 2,338,632
980,057,221
- -------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 666,214
Due to Distributor 470,964
Payable for investment securities purchased 9,761,462
Payable for shares of Beneficial Interest redeemed 7,330,501
Interest payable--Note 4 23,533
18,252,674
- -------------------------------------------------------------------------------
NET ASSETS ($) 961,804,547
- -------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 1,072,467,46
Accumulated undistributed investment income--net 787,075
Accumulated net realized gain (loss) on investments (39,643,122)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3 (71,806,866)
- --------------------------------------------------------------------------------
NET ASSETS ($) 961,804,547
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class C
Class R
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 135,608,722 617,868,140 208,187,970 139,715
Shares Outstanding 12,341,608 56,237,234 18,939,181 12,724
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 10.99 10.99 10.99 10.98
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 49,158,006
Cash dividends 2,765,125
TOTAL INCOME 51,923,131
EXPENSES:
Management fee--Note 2(a) 3,306,118
Distribution and service fees--Note 2(b) 3,442,836
Interest expense--Note 4 32,585
TOTAL EXPENSES 6,781,539
INVESTMENT INCOME--NET 45,141,592
- --------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 3 ($):
Net realized gain (loss) on investments (21,999,043)
Net unrealized appreciation (depreciation) on investments (6,938,459)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (28,937,502)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 16,204,090
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998
- -------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS ($):
Investment income--net 45,141,592 59,847,911
Net realized gain (loss) on investments (21,999,043) (17,497,235)
Net unrealized appreciation (depreciation)
on investments (6,938,459) (62,388,806)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 16,204,090 (20,038,130)
- -------------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (7,306,195) (10,382,991)
Class B shares (28,216,976) (35,300,767)
Class C shares (9,823,989) (13,155,121)
Class R shares (7,030) (12,480)
TOTAL DIVIDENDS (45,354,190) (58,851,359)
- -------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 93,277,563 127,961,825
Class B shares 128,371,967 440,097,645
Class C shares 47,592,672 184,901,944
Class R shares 10,000 --
Dividends reinvested:
Class A shares 3,606,625 6,262,565
Class B shares 7,675,427 9,117,590
Class C shares 3,082,046 3,905,817
Class R shares 6,596 12,480
Cost of shares redeemed:
Class A shares (103,998,962) (40,179,581)
Class B shares (51,333,017) (48,434,992)
Class C shares (40,194,272) (33,282,236)
Class R shares -- (10)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS 88,096,645 650,363,047
TOTAL INCREASE (DECREASE) IN NET ASSETS 58,946,545 571,473,558
- -------------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 902,858,002 331,384,444
END OF PERIOD 961,804,547 902,858,002
Undistributed investment income--net 787,075 999,673
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998
- -------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 8,383,097 10,556,558
Shares issued for dividends reinvested 323,098 523,771
Shares redeemed (9,352,487) (3,364,705)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (646,292) 7,715,624
- -------------------------------------------------------------------------------
CLASS B
Shares sold 11,460,368 36,142,877
Shares issued for dividends reinvested 688,862 764,857
Shares redeemed (4,597,139) (4,116,604)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 7,552,091 32,791,130
- -------------------------------------------------------------------------------
CLASS C
Shares sold 4,244,612 15,092,226
Shares issued for dividends reinvested 276,357 327,575
Shares redeemed (3,601,694) (2,814,091)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 919,275 12,605,710
- -------------------------------------------------------------------------------
CLASS R
Shares sold 885 --
Shares issued for dividends reinvested 592 1,035
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 1,477 1,035
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single fund share. Total return shows how much your investment in the fund would
have increased (or decreased) during each period, assuming you had reinvested
all dividends and distributions. These figures have been derived from the fund's
financial statements.
<TABLE>
<CAPTION>
Class A Class B
---------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 1997(a) (Unaudited) 1998 1997(a)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 11.33 12.46 12.50 11.33 12.46 12.50
Investment Operations:
Investment income--net .56 1.15 .71 .53 1.09 .66
Net realized and unrealized
gain (loss) on investments (.34) (1.14) (.04) (.34) (1.14) (.04)
Total from Investment
Operations .22 .01 .67 .19 (.05) .62
Distributions:
Dividends from investment
income--net (.56) (1.14) (.71) (.53) (1.08) (.66)
Net asset value, end of period 10.99 11.33 12.46 10.99 11.33 12.46
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(b) 3.99(c) (.10) 9.16(c) 3.49(c) (.61) 8.57(c)
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets .95(c) .95 .95(c) 1.45(c) 1.45 1.45(c)
Ratio of interest expense to
average net assets .01(c) .02 .08(c) .01(c) .02 .09(c)
Ratio of net investment income
to average net assets 10.66(c) 9.55 9.34(c) 9.20(c) 9.02 8.73(c)
Portfolio Turnover Rate 21.25(d) 45.34 28.83(d) 21.25(d) 45.34 28.83(d)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 135,609 147,131 65,705 617,868 551,415 198,057
(A) FROM MAY 30, 1997 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1997.
(B) EXCLUSIVE OF SALES CHARGE.
(C) ANNUALIZED.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Class C Class R
--------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(Unaudited) 1998 1997(a) (Unaudited) 1998 1997(a)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 11.33 12.47 12.50 11.32 12.45 12.50
Investment Operations:
Investment income--net .52 1.06 .65 .55 1.25 .81
Net realized and unrealized
gain (loss) on investments (.34) (1.15) (.03) (.32) (1.21) (.14)
Total from Investment
Operations .18 (.09) .62 .23 .04 .67
Distributions:
Dividends from investment
income--net (.52) (1.05) (.65) (.57) (1.17) (.72)
Net asset value, end of period 10.99 11.33 12.47 10.98 11.32 12.45
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(b) 3.23(c) (.93) 8.47(c) 4.23(c) .14 9.26(c)
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 1.70(c) 1.70 1.70(c) .70(c) .70 .75(c)
Ratio of interest expense to
average net assets .01(c) .02 .09(c) -- .03 .05(c)
Ratio of net investment income
to average net assets 9.31(c) 8.77 8.54(c) 10.13(c) 10.41 10.08(c)
Portfolio Turnover Rate 21.25(d) 45.34 28.83(d) 21.25(d) 45.34 28.83(d)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 208,188 204,184 67,495 140 127 127
(A) FROM MAY 30, 1997 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1997.
(B) EXCLUSIVE OF SALES CHARGE.
(C) ANNUALIZED.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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 charge 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 The Fun
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis.
(C) DISTRIBUTIONS TO SHAREHOLDERS: It is the policy of the fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain 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, it is the policy of the fund not to distribute such
gain.
<PAGE>
(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 and expenses of non-interested Trustees (including counsel fees)
and extraordinary expenses. In addition, the Manager is required to reduce its
fee in an amount equal to the fund's allocable portion of fees and expenses of
the non-interested Trustees (including counsel). Each Trustee receives $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 The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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.
(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 pay Dreyfus Service Corporation or the Distributor
for providing certain services to the holders of their shares a fee at the
annual rate of .25% of the value of the average daily net assets of Class B and
Class C shares. Class R shares bear no distribution or service fee. During the
period ended June 30, 1999, Class A, Class B and Class C shares were charged
$180,829, $1,474,049 and $788,200, respectively pursuant to the Plan and Class B
and Class C shares were charged $737,024 and $262,734 respectively, pursuant to
the service plan.
<PAGE>
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 or service plan.
NOTE 3--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended June 30, 1999, amounted to
$285,944,411 and $193,346,985, respectively.
At June 30, 1999, accumulated net unrealized depreciation on investments was
$71,806,866, consisting of $7,039,765 gross unrealized appreciation and
$78,846,631 gross unrealized depreciation.
At June 30, 1999, 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 Lines of Credit:
The fund may borrow up to $10 million for leveraging purposes under a short-term
unsecured line of credit and participates with other Dreyfus-managed funds in a
$100 million unsecured line of credit primarily to be utilized for temporary or
emergency purposes, including the financing of redemptions. Interest is charged
to the fund at rates which are related to the Federal Funds rate in effect at
the time of borrowings.
The average daily amount of borrowings outstanding during the period ended June
30, 1999 was approximately $1,271,300 with a related weighted average annualized
interest rate of 5.17%.
The Fund
<PAGE>
For More Information
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 029/759SA996
<PAGE>
Dreyfus Premier Core Value Fund
SEMIANNUAL REPORT June 30, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
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.
<PAGE>
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
14 Statement of Assets and Liabilities
15 Statement of Operations
16 Statement of Changes in Net Assets
19 Financial Highlights
24 Notes to Financial Statements
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
<PAGE>
The Fund
Dreyfus Premier Core Value Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Core Value
Fund, covering the six-month period from January 1, 1999 through June 30, 1999.
Inside you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Valerie J. Sill.
Ms. Sill, who had been a member of the fund's investment committee, assumed
primary responsibility for the day-to-day management of the fund's portfolio on
May 1, 1999.
The past six months have been rewarding for most equity investors. Strong
economic growth, low inflation and high levels of consumer spending supported
continued strength in the stocks of many large companies. Several major market
indices set new records, including the Dow Jones Industrial Average's first-ever
close above the 10,000 level. The broader Standard & Poor's 500 Composite Stock
Price Index and the technology-laden NASDAQ Index also recorded new highs.
Beginning in April, many previously out-of-favor market sectors rallied
strongly, including value-oriented stocks. At the same time, large-cap growth
stocks appear to have paused in their advance. This has helped narrow the
valuation gap that had developed over the past several years between the growth
and value sectors of the large-cap stock market.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Core Value Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
July 15, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Valerie J. Sill, Portfolio Manager
How did Dreyfus Premier Core Value Fund perform during the period?
For the six-month period ended June 30, 1999, Dreyfus Premier Core Value Fund
produced a total return of 18.17% for its Class A shares, 17.69% for its Class B
shares, 17.69% for its Class C shares, 18.20% for its Institutional shares and
18.29% for its Class R shares.(1) In comparison, the Standard & Poor's 500
Composite Stock Price Index ("S&P 500") produced a total return of 12.38% and
the S& P 500/BARRA Value Index produced a total return of 13.96% for the same
period.(2) A major reason the fund outperformed the S& P 500 and the S&P
500/BARRA Value Index was the addition of economically sensitive stocks to the
portfolio early in 1999 before there was wide recognition of the United States
economy' s surprisingly strong growth. Economically sensitive stocks in such
sectors as chemicals, energy, metals and paper generally produce stronger
earnings as the economy improves.
What is the fund's investment approach?
The fund invests primarily in companies that are considered undervalued based on
traditional measures such as price-to-earnings ratios. In choosing stocks, we
use a bottom-up stock selection approach that focuses on individual companies,
rather than a top-down approach that forecasts market trends. We also focus on a
company' s relative value, financial strength, sales and earnings momentum, and
likely catalysts that could ignite the stock price.
Last winter, our quantitative screening process identified many economically
cyclical stocks that were very attractively valued. Examples include Dow
Chemical, duPont (E.I.) de Nemours and Honeywell, three companies that all
turned out to be very positive contributions to the portfolio's six-month
performance. Dow Chemical was initially purchased last fall at the height of
concerns about a U.S. recession, The Fund
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
brought on by the Asian economic crisis. As an economically cyclical company,
the stock was shunned by the investment community. When we did our analysis,
however, we believed that Wall Street's outlook was far too pessimistic on the
company, considering that the U.S. economy had shown no signs of slowing, so we
increased our position during the reporting period.
DuPont (E.I.) de Nemours, a chemical company that owns 80% of the oil company
Conoco, presented a different investment challenge. Early in the period, we
determined that duPont' s core life sciences and specialty chemicals divisions
deserved a higher market value than the stock price indicated. That's because we
believed it offered higher profit margins than the typical commodity chemical
company. Meanwhile, oil prices rebounded from $11 to $18 per barrel during the
six-month period, which served to boost the value of Conoco, as well as duPont.
Another inexpensive stock was Honeywell, which, despite its strong business
fundamentals, was trading at a substantial discount to its peers in the capital
equipment sector. The company' s status as a major supplier to Boeing was
perceived as a negative, since Boeing had a significant amount of business in
Asia. Once Asia' s economy stabilized, Honeywell's shares rose substantially.
Late in the period, the company was in merger discussions with Allied-Signal,
which lifted the stock' s price again. We then sold the Honeywell position in
early June after Allied-Signal announced the takeover of the firm.
What other factors influenced the fund's performance?
By far, the largest sector in the fund continues to be financial services. Last
year' s global economic crisis was very difficult for bank and brokerage stocks,
but it did create new opportunities for the fund to pick up several
bargain-priced companies, including Citigroup. Although the company reported
poor profits in 1998, we determined that the stock was very inexpensive when
adding up its potential earnings in investment banking, credit card operations
and corporate lending. In addition, the company would realize cost savings after
its merger with Travelers Group. As a result, Citigroup has been a very
successful stock for the fund.
<PAGE>
We have also enjoyed success with stocks in the "consumer nondurable" sector,
which includes companies such as Nike, Cl. B and Mattel. In 1998, Nike, Cl. B
shares had sold off sharply due to the company's exposure in Asia as well as
general pessimism about the shoe business. However, the company's cash flow
remained strong and its sales steadily improved. Ultimately, the Asia cloud
lifted and the stock rebounded sharply. As for Mattel, we purchased shares of
the company in December when it announced the acquisition of Learning Company, a
division that specializes in educational software. We believed educational
software was a very important market for the company.
What is the fund's current strategy?
With Asia' s apparent stabilization and the strength of the U.S. economy,
traditional value companies, such as manufacturers, energy producers and other
economically cyclical stocks, have outperformed traditional growth stocks during
the first half of 1999. We believe that the fund outperformed the S&P 500 and
the S&P 500/BARRA Value Index during the period because it holds stocks that are
not only undervalued, but also has catalysts in place for strong performance. We
will continue to pursue the same strategy of seeking to select the best stocks
in the value universe.
July 15, 1999
(1) 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. HAD THESE
CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
INCOME DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE STANDARD
& POOR'S 500 COMPOSITE STOCK PRICE INDEX IS A WIDELY ACCEPTED UNMANAGED INDEX OF
U.S. STOCK MARKET PERFORMANCE. THE S&P 500/BARRA VALUE INDEX IS A
CAPITALIZATION-WEIGHTED INDEX OF ALL THE STOCKS IN THE STANDARD AND POOR'S 500
COMPOSITE PRICE INDEX THAT HAVE LOW PRICE-TO-BOOK RATIOS.
The Fund
<PAGE>
STATEMENT OF INVESTMENTS
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS--96.0% Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE & MILITARY TECHNOLOGY--.0%
C.S.F. (Thompson) 3,025 105,460
APPLIANCES--2.1%
Koninklijke (Royal) Philips Electronics, ADR 141,332 14,256,865
Rinnai 3,800 87,270
Sony 1,500 161,710
14,505,845
AUTOMOBILES--.1%
Autoliv 2,350 71,938
Honda Motor 2,000 84,758
PSA Peugeot Citroen 540 85,470
Toyota Motor 3,000 94,920
Volkswagen 850 54,606
391,692
BANKING--4.0%
ABN-Amro 4,772 103,669
Argentaria, Caja Postal y Banco Hipotecario de Espana, ADR 1,400 64,400
Australia & New Zealand Banking 15,440 114,200
Banca Popolare di Bergamo Credito Varesino 1,700 37,301
Banco Pinto & Sotto Mayor 2,960 52,730
Banco Popular Espanol 1,100 79,372
BankBoston 275,000 14,059,375
Bank of America 174,686 12,806,667
Barclays 2,014 58,656
Deutsche Bank 1,333 81,567
Development Bank of Singapore 9,200 112,532
Dexia France 450 60,425
HSBC 904 32,974
Istituto Bancario San Paolo di Torino, ADR 1,254 34,485
Jyske Bank 750 71,186
Kookmin Bank, ADS 298 (b) 6,109
Royal Bank of Scotland Group 5,000 101,446
Societe Generale 510 90,166
UBS 300 89,952
United Overseas Bank 2,000 13,996
28,071,208
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------------
BASIC INDUSTRIES--4.7%
Dow Chemical 73,600 9,338,000
duPont(EI)deNemours 183,600 12,542,175
Georgia-Pacific 121,900 5,775,012
Reynolds Metals 79,700 4,702,300
32,357,487
BUILDING MATERIALS--.0%
Forbo Holding 160 63,897
Tarkett Sommer 1,000 8,948
Sekisui Chemical 7,000 40,595
Wolseley 10,400 78,349
191,789
CAPITAL GOODS--7.6%
Browning-Ferris Industries 104,300 4,484,900
Delphi Automotive Systems 363,100 6,740,044
Eaton 42,800 3,937,600
Ingersoll-Rand 34,400 2,223,100
Republic Services 191,200 (a) 4,732,200
United Technologies 239,000 17,133,312
Waste Management 258,012 13,868,145
53,119,301
CHEMICALS--.1%
AKZO Nobel, ADR 1,800 76,275
Air Liquide 737 116,270
BOC Group 5,352 105,126
Bayer 2,750 114,933
412,604
CONSTRUCTION & HOUSING--.0%
Hollandsche Beton Groep 3,363 43,140
Nishimatsu Construction 9,000 51,598
94,738
CONSUMER DURABLES--1.5%
AutoNation 5,000 (a) 89,062
Black & Decker 38,300 2,417,687
Ford Motor 143,900 8,121,356
R.J. Reynolds Tobacco Holdings 1 (a) 21
10,628,126
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--5.4%
Harcourt General 43,800 2,258,437
Kimberly-Clark 114,800 6,543,600
Loews 54,700 4,328,137
Mattel 502,280 13,279,027
NIKE, Cl. B 133,600 8,475,183
Tommy Hilfiger 33,600 (a) 2,469,600
37,353,984
CONSUMER SERVICES--7.8%
Abercrombie & Fitch, Cl. A 2 (a) 96
Cendant 358,300 (a) 7,345,150
Circuit City Stores-Circuit City Group 75,900 7,058,700
Deluxe 103,700 4,037,819
Disney (Walt) 116,500 3,589,656
Dun & Bradstreet 65,100 2,306,981
Federated Department Stores 207,700 (a) 10,995,119
First Data 149,800 7,330,837
Kmart 201,900 (a) 3,318,731
Tricon Global Restaurants 146,900 (a) 7,950,963
53,934,052
DATA PROCESSING--.0%
Canon 4,000 114,994
ELECTRICAL & ELECTRONICS--.1%
Mabuchi Motor 1,000 92,937
Murata Manufacturing 2,000 131,516
Rohm 1,000 156,547
Siemens 1,600 123,809
504,809
ENERGY--9.3%
Conoco, Cl. A 323,800 9,025,925
ENI, ADS 1,800 108,000
Elf Aquitaine, ADS 83,000 6,105,688
Mobil 142,400 14,097,600
Repsol, ADR 4,800 97,500
Schlumberger 78,200 4,980,362
Texaco 203,100 12,693,750
Tosco 228,400 5,924,125
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------------
ENERGY (CONTINUED)
Transocean Offshore 95,000 2,493,750
Unocal 236,200 9,359,425
64,886,125
FINANCIAL SERVICES--19.1%
Aetna 67,700 6,054,919
Aiful 500 61,214
Allmerica Financial 87,300 5,308,931
Allstate 366,800 13,158,950
American General 68,500 5,163,187
American International Group 107,350 12,566,659
Chase Manhattan 197,600 17,117,100
Chubb 46,300 3,217,850
Citigroup 416,300 19,774,250
Credit Saison 5,000 104,502
Everest Reinsurance Holdings 67,300 2,195,662
Federal National Mortgage Association 104,800 7,165,700
Golden State Bancorp 326,500 7,183,000
Goldman Sachs Group 40,500 2,926,125
Hartford Financial Services Group 98,500 5,743,781
Henderson Investment 70,000 48,720
Marsh & McLennan 80,500 6,077,750
Morgan Stanley Dean Witter 121,000 12,402,500
Nichiei 1,380 120,843
Washington Mutual 95,286 3,370,742
Wells Fargo 74,000 3,163,500
132,925,885
FOODS & RELATED PRODUCTS--.0%
Barry Callebaut 494 75,975
Bongrain 140 53,008
Goodman Fielder 53,000 47,532
176,515
FOREST & PAPER PRODUCTS--.5%
Fletcher Challenge Paper 57,061 43,179
Fort James 87,000 3,295,125
3,338,304
HEALTH CARE--4.4%
Abbott Laboratories 64,200 2,921,100
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (CONTINUED)
Columbia/HCA Healthcare 297,500 6,786,719
Hoechst 1,500 68,122
Johnson & Johnson 36,100 3,537,800
Medeva 15,486 25,165
Merck KGaA 2,900 94,621
Pharmacia & Upjohn 137,400 7,806,038
Sankyo Company 3,000 75,589
Tenet Healthcare 363,500 (a) 6,747,469
Yamanouchi Pharmaceutical 3,000 114,746
Watson Pharmaceuticals 59,200 (a) 2,075,700
30,253,069
INDUSTRIAL COMPONENTS--.0%
Michelin 1,018 41,777
Minebea 8,000 89,219
Morgan Crucible 19,222 82,033
213,029
INSURANCE--2.0%
Assurances Generales de France 1,125 54,350
CIGNA 156,600 13,937,400
CNP Assurances 1,000 (a) 27,404
Dai-Tokyo Fire & Marine Insurance 14,000 50,310
Royal & Sun Alliance Insurance 11,696 105,000
14,174,464
LEISURE & TOURISM--.0%
NAMCO 2,400 64,436
MACHINERY--.1%
Alstom, ADR 1,305 (a) 41,760
Fuji Machine Manufacturing 2,000 61,627
GEA 2,100 (a) 63,436
Laird Group 11,400 47,572
Mitsubishi Heavy Industries 13,000 52,730
Stork 3,008 68,770
Sulzer 120 (a) 73,279
409,174
MERCHANDISING--1.2%
Matsumotokiyoshi 2,000 119,785
Safeway 25,983 104,226
Storehouse 27,743 56,901
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------------
MERCHANDISING (CONTINUED)
Toys R Us 221,000 (a) 4,571,937
Venator Group 340,600 (a) 3,555,013
8,407,862
METALS--.1%
China Steel, ADR 8 (b) 117
KM Europa Metal 600 31,345
Pechiney A 1,100 47,430
Pohang Iron & Steel, ADR 900 30,263
Rio Tinto 6,000 100,673
Usinor 4,300 64,279
274,107
MISCELLANEOUS MATERIALS--.0%
Bunzl 25,000 124,047
Rexam 23,000 92,895
216,942
MULTI INDUSTRY--.1%
First Philippine Holdings 8,400 9,498
Hunter Douglas 2,896 99,764
Orkla AS-B 2,400 32,631
Pacific Dunlop 37,686 54,699
Tomkins 25,164 109,178
305,770
RECREATION--.3%
Hasbro 75,100 2,098,106
Sankyo 2,000 95,663
2,193,769
TECHNOLOGY--11.5%
Apple Computer 66,800 (a) 3,093,675
BMC Software 150,900 (a) 8,148,600
Computer Associates International 224,200 12,331,000
Compuware 241,500 7,682,719
Electronic Data Systems 124,600 7,047,688
Hewlett-Packard 129,400 13,004,700
International Business Machines 112,200 14,501,850
Sterling Commerce 61,500 (a) 2,244,750
Sun Microsystems 173,500 (a) 11,949,813
80,004,795
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--3.4%
Hellenic Tellecommunication Organization 5,188 57,392
Nortel Networks 112,100 9,731,681
Portugal Telecom 1,500 61,217
Portugal Telecom (Rights) 1,500 16
Royal PTT Nederland, ADS 2,043 98,064
SK Telecom 3 408
SK Telecom, ADR 270 4,590
Sprint (FON Group) 121,800 6,432,563
Swisscom 75 28,352
Telecom Corporation of New Zealand 14,700 63,766
Telecom Italia 17,760 (a) 96,916
Telecomunicacoes Brasileiras, ADR 202 18,218
Telefonica del Peru, ADR 2,900 43,863
Telefonos de Mexico, ADR 87,946 7,107,136
23,744,182
TRANSPORTATION--1.2%
British Airways 3,936 27,184
British Airways, ADR 360 25,718
Deutsche Lufthansa 2,900 52,741
Union Pacific 139,700 8,146,256
8,251,899
UTILITIES--9.4%
AT&T 282,709 15,778,700
Bell Atlantic 1,200 78,450
CMS Energy 150,500 6,302,188
Duke Energy 101,000 5,491,875
EVN 300 44,008
Edison International 180,400 4,825,700
Endesa 4,200 89,853
GTE 85,700 6,491,775
Gas Y Electridad 1,022 80,616
Hongkong Electric Holdings 30,122 96,671
Korea Electric Power, ADR 2,700 55,350
PacifiCorp 385,500 7,083,563
Pinnacle West Capital 107,800 4,338,950
PowerGen 10,221 109,896
SBC Communications 159,600 9,256,800
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES (CONTINUED)
Southern 203,200 5,384,800
VEBA 1,950 114,985
Viag 160 75,808
65,699,988
WHOLESALE & INTERNATIONAL TRADE--.0%
Buhrmann 3,144 50,901
Kesko 4,800 64,801
Marubeni 28,000 58,521
174,223
TOTAL COMMON STOCKS
(cost $531,384,809) 667,500,627
- ----------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--2.1%
- ----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE & MILITARY TECHNOLOGY--.0%
Rheinmetall 1,500 27,000
MISCELLANEOUS--2.1%
News, ADR 469,400 14,815,438
TEXTILES & APPAREL--.0%
Hugo Boss 22 29,587
TOTAL PREFERRED STOCKS
(cost $8,055,473) 14,872,025
- ----------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--2.3% Amount ($) Value ($)
- ----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER;
General Electric Corporation,
5.625%, due 7/1/99
(cost $16,138,000) 16,138,000 16,138,000
TOTAL INVESTMENTS (cost $555,578,282) 100.4% 698,510,652
LIABILITIES, LESS CASH AND RECEIVABLES (.4%) (2,481,390)
NET ASSETS 100.0% 696,029,262
(A) NON-INCOME PRODUCING.
(B ) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT JUNE 30, 1999,
THESE SECURITIES AMOUNTED TO $6,226.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
Cost Value
- -------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 555,578,282 698,510,652
Cash 278,968
Cash denominated in foreign currencies 374,652 373,187
Receivable for investment securities sold 1,800,520
Dividends and interest receivable 816,586
Receivable for shares of Beneficial Interest subscribed 64,569
701,844,482
- -------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 629,687
Due to Distributor 10,188
Payable for investment securities purchased 4,915,473
Payable for shares of Beneficial Interest redeemed 258,872
Loan commitment fees payable--Note 4 1,000
5,815,220
- -------------------------------------------------------------------------------
NET ASSETS ($) 696,029,262
- -------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 513,988,959
Accumulated undistributed investment income--net 193,959
Accumulated net realized gain (loss) on investments
and foreign currency transactions 38,915,794
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 142,930,550
- -------------------------------------------------------------------------------
NET ASSETS ($) 696,029,262
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class C Class R Institutional
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 611,767,198 3,851,777 1,426,486 847,819 78,135,982
Shares Outstanding 17,959,128 113,533 42,041 24,897 2,295,387
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 34.06 33.93 33.93 34.05 34.04
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $59,062 foreign taxes withheld at source) 4,828,576
Interest 192,086
TOTAL INCOME 5,020,662
EXPENSES:
Management fee--Note 2(a) 2,909,323
Distribution and service fees--Note 2(b) 781,987
Loan commitment fees--Note 4 1,364
TOTAL EXPENSES 3,692,674
INVESTMENT INCOME--NET 1,327,988
- -------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 3 ($):
Net realized gain (loss) on investments and
foreign currency transactions 41,138,566
Net realized gain (loss) on forward
currency exchange contracts (2,519)
NET REALIZED GAIN (LOSS) 41,136,047
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions 66,033,298
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 107,169,345
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 108,497,333
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998((+))
- -------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 1,327,988 4,095,836
Net realized gain (loss) on investments 41,136,047 48,836,827
Net unrealized appreciation (depreciation)
on investments 66,033,298 (8,172,759)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 108,497,333 44,759,904
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
From investment income--net:
Class A shares (1,173,290) (3,168,010)
Class B shares -- (377)
Class C shares -- (52)
Class R shares (2,619) (6,978)
Institutional shares (184,078) (528,055)
From net realized gain on investments:
Class A shares (6,873,237) (51,737,780)
Class B shares (27,989) (143,476)
Class C shares (3,598) (15,130)
Class R shares (9,483) (78,806)
Institutional shares (854,478) (6,909,155)
TOTAL DIVIDENDS (9,128,772) (62,587,819)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 62,280,111 95,520,325
Class B shares 1,700,605 2,307,043
Class C shares 1,202,469 235,931
Class R shares 245,054 276,835
Institutional shares 3,495,741 6,947,289
((+)) EFFECTIVE JANUARY 16, 1998, INVESTOR SHARES WERE REDESIGNATED AS CLASS A
SHARES, RESTRICTED SHARES WERE REDESIGNATED AS CLASS R SHARES AND THE FUND
COMMENCED SELLING CLASS B AND CLASS C SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998((+))
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (CONTINUED) ($):
Dividends reinvested:
Class A shares 6,672,501 45,635,415
Class B shares 22,964 113,872
Class C shares 2,317 10,479
Class R shares 12,078 85,711
Institutional shares 983,647 7,196,240
Cost of shares redeemed:
Class A shares (100,883,495) (155,282,068)
Class B shares (287,830) (236,332)
Class C shares (37,172) (34,016)
Class R shares (377,299) (363,657)
Institutional shares (11,360,759) (18,513,042)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (36,329,068) (16,099,975)
TOTAL INCREASE (DECREASE) IN NET ASSETS 63,039,493 (33,927,890)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 632,989,769 666,917,659
END OF PERIOD 696,029,262 632,989,769
Undistributed investment income--net 193,959 225,958
((+)) 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.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998((+))
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 1,952,608 3,027,578
Shares issued for dividends reinvested 217,717 1,522,707
Shares redeemed (3,210,740) (4,997,829)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,040,415) (447,544)
- --------------------------------------------------------------------------------
CLASS B
Shares sold 52,465 73,785
Shares issued for dividends reinvested 757 3,915
Shares redeemed (9,324) (8,065)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 43,898 69,635
- --------------------------------------------------------------------------------
CLASS C
Shares sold 36,456 7,514
Shares issued for dividends reinvested 76 358
Shares redeemed (1,171) (1,192)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 35,361 6,680
- --------------------------------------------------------------------------------
CLASS R
Shares sold 8,129 9,127
Shares issued for dividends reinvested 393 2,869
Shares redeemed (12,403) (12,007)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (3,881) (11)
- --------------------------------------------------------------------------------
INSTITUTIONAL SHARES
Shares sold 107,314 232,611
Shares issued for dividends reinvested 32,050 240,213
Shares redeemed (377,071) (611,875)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (237,707) (139,051)
((+)) 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.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single fund share. Total return shows how much your investment in the fund would
have increased (or decreased) during each period, assuming you had reinvested
all dividends and distributions. These figures have been derived from the fund's
financial statements.
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1999 Year Ended December 31,
----------------------------------------------------------------
CLASS A SHARES (Unaudited) 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 29.26 30.11 30.40 30.13 24.56 27.80
Investment Operations:
Investment income--net .06(a) .19 .22 .31 .41 .42
Net realized and unrealized
gain (loss) on investments 5.19 1.95 6.98 6.03 8.24 (.29)
Total from Investment Operations 5.25 2.14 7.20 6.34 8.65 .13
Distributions:
Dividends from investment
income--net (.07) (.17) (.23) (.30) (.45) (.40)
Dividends in excess of investment
income--net -- -- (.01) -- -- --
Dividends from net realized gain
on investments (.38) (2.82) (7.25) (5.77) (2.63) (2.97)
Total Distributions (.45) (2.99) (7.49) (6.07) (3.08) (3.37)
Net asset value, end of period 34.06 29.26 30.11 30.40 30.13 24.56
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 18.17(b,c) 7.06(b) 25.21 21.44 35.56 .38
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .57(c) 1.15 1.14 1.13 1.13 1.11
Ratio of net investment income
to average net assets .20(c) .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 47.01(c) 84.32 92.99 88.46 54.42 73.00
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 611,767 555,863 585,624 486,816 401,674 317,868
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
June 30, 1999 Year Ended
CLASS B SHARES (Unaudited) December 31, 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 29.19 29.04
Investment Operations:
Investment (loss) (.05)(b) (.02)
Net realized and unrealized gain (loss)
on investments 5.17 3.00
Total from Investment Operations 5.12 2.98
Distributions:
Dividends from investment income--net -- (.01)
Dividends from net realized gain on investments (.38) (2.82)
Total Distributions (.38) (2.83)
Net asset value, end of period 33.93 29.19
- --------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 17.69(d) 10.24(d)
- -------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .95(d) 1.82(d)
Ratio of net investment income (loss)
to average net assets (.18)(d) (.14)(d)
Portfolio Turnover Rate 47.01(d) 84.32(d)
- --------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 3,852 2,033
(A) FROM JANUARY 16, 1998 (COMMENCEMENT OF INITIAL OFFERING) TO
DECEMBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
Six Months Ended
June 30, 1999 Year Ended
CLASS C SHARES (Unaudited) December 31, 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 29.19 29.04
Investment Operations:
Investment (loss) (.03)(b) (.02)
Net realized and unrealized gain (loss)
on investments 5.15 3.00
Total from Investment Operations 5.12 2.98
Distributions:
Dividends from investment income--net -- (.01)
Dividends from net realized gain on investments (.38) (2.82)
Total Distributions (.38) (2.83)
Net asset value, end of period 33.93 29.19
- ----------------------------------------------------------------------------
TOTAL RETURN (%)(C) 17.69(d) 10.24(d)
- ----------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .96(d) 1.82(d)
Ratio of net investment income (loss)
to average net assets (.20)(d) (.13)(d)
Portfolio Turnover Rate 47.01(d) 84.32
- ----------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,426 195
(A) FROM JANUARY 16, 1998 (COMMENCEMENT OF INITIAL OFFERING) TO
DECEMBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.(
(D) NOT ANNUALIZED.(
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1999 Year Ended December 31,
--------------------------------------------------------------
CLASS R SHARES (Unaudited) 1998 1997 1996 1995 1994(a)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 29.25 30.11 30.46 30.18 24.56 28.45
Investment Operations:
Investment income--net .07(b) .26 .33(b) .36 .62 .29
Net realized and unrealized
gain (loss) on investments 5.22 1.95 6.90 6.08 8.16 (.83)
Total from Investment Operations 5.29 2.21 7.23 6.44 8.78 (.54)
Distributions:
Dividends from investment
income--net (.11) (.25) (.32) (.39) (.53) (.38)
Dividends in excess of investment
income--net -- -- (.01) -- -- --
Dividends from net realized gain
on investments (.38) (2.82) (7.25) (5.77) (2.63) (2.97)
Total Distributions (.49) (3.07) (7.58) (6.16) (3.16) (3.35)
Net asset value, end of period 34.05 29.25 30.11 30.46 30.18 24.56
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 18.29(c) 7.01 25.54 21.74 36.05 (2.31)(c)
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .45(c) .90 .89 .88 .88 .35(c)
Ratio of net investment income
to average net assets .32(c) .82 .88 1.23 1.93 .70(c)
Decrease reflected in above
expense ratios due to
undertakings by the Manager -- -- .01 .02 .02 .01(c)
Portfolio Turnover Rate 47.01(c) 84.32 92.99 88.46 54.42 73.00
- ----------------------------------------------------------------------------------------------------------------------------------
- -------
Net Assets, end of period
($ x 1,000) 848 842 867 11,618 185 1,070
(A) FROM AUGUST 4, 1994 (COMMENCEMENT OF INITIAL OFFERING) TO DECEMBER 31, 1994.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1999 Year Ended December 31,
--------------------------------------------------------------
INSTITUTIONAL SHARES (Unaudited) 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 29.24 30.10 30.38 30.12 24.56 27.80
Investment Operations:
Investment income--net .08(a) .22 .26 .36 .47 .47
Net realized and unrealized
gain (loss) on investments 5.18 1.95 6.98 6.01 8.20 (.31)
Total from Investment Operations 5.26 2.17 7.24 6.37 8.67 .16
Distributions:
Dividends from investment
income--net (.08) (.21) (.26) (.34) (.48) (.43)
Dividends in excess of investment
income--net -- -- (.01) -- -- --
Dividends from net realized gain
on investments (.38) (2.82) (7.25) (5.77) (2.63) (2.97)
Total Distributions (.46) (3.03) (7.52) (6.11) (3.11) (3.40)
Net asset value, end of period 34.04 29.24 30.10 30.38 30.12 24.56
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 18.20(b) 7.17 25.34 21.57 35.60 .49
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .52(b) 1.05 1.04 1.03 1.03 1.02
Ratio of net investment income
to average net assets .25(b) .71 .74 1.07 1.53 1.57
Decrease reflected in above
expense ratios due to
undertakings by the Manager -- -- .01 .02 .02 .01
Portfolio Turnover Rate 47.01(b) 84.32 92.99 88.46 54.42 73.00
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 78,136 74,058 80,427 71,894 75,607 59,435
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Core Value Fund (the "fund") is a separate diversified series of
The Dreyfus/Laurel Funds Trust (the "trust" ) which is registered under the
Investment Company Act of 1940, 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").
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, 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 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.
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.
<PAGE>
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities are valued at the last sales
price on the securities exchange on which such securities are primarily traded
or at the last sales price on the national securities market. Securities not
listed on an exchange or the national securities market, or securities for which
there were no transactions, are valued at the average of the most recent bid and
asked prices. Bid price is used when no asked price is available. Securities for
which there are no such valuations are valued at fair value as determined in
good faith under the direction of the Board of Trustees. Investments denominated
in foreign currencies are translated to U.S. dollars at the prevailing rates of
exchange. Forward currency exchange contracts are valued at the forward rate.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis.
(C) FOREIGN CURRENCY TRANSACTIONS: The fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in the market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions 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 The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 June 30, 1999, 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.
<PAGE>
(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 investments of the fund in accordance with its investment objective,
policies and limitations. For these services, the fund is contractually
obligated to pay the Manager a fee, calculated daily and paid monthly, at the
annual rate of .90% of the value of the fund's average daily net assets. Out of
its fee, the Manager pays all of the expenses of the fund except brokerage fees,
taxes, interest, commitment fees, Rule 12b-1 distribution fees and expenses,
service fees, fees and expenses of non-interested trustees (including counsel
fees) and extraordinary expenses. In addition, the Manager is required to reduce
its fee in an amount equal to the fund's allocable portion of fees and expenses
of the non-interested trustees (including counsel) . Each Trustee receives
$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 are
charged and allocated to each The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, retained
$32,848 during the period ended June 30, 1999, 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 of 1% 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 their shares at an 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 June 30, 1999, Class A, Class B, Class C and Institutional
shares were charged $713,205, $9,489, $1,486 and $54,149, respectively, pursuant
to the Plan. During the period ended June 30, 1999, Class B and Class C shares
were charged $3,163 and $495, respectively, pursuant to the service plan.
<PAGE>
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 or in any agreement
related to the plan or service plan.
NOTE 3--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities and forward currency exchange contracts, during the period
ended June 30, 1999 amounted to $301,895,016 and $356,505,889, respectively.
At June 30, 1999, accumulated net unrealized appreciation on investments was
$142,932,370, consisting of $152,550,320 gross unrealized appreciation and
$9,617,950 gross unrealized depreciation.
At June 30, 1999, 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 June
30, 1999, the fund did not borrow under the Facility.
The Fund
<PAGE>
For More Information
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 312/712SA996
<PAGE>
Dreyfus
Premier Managed
Income Fund
SEMIANNUAL REPORT June 30, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
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.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
15 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
19 Financial Highlights
23 Notes to Financial Statements
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
Managed Income Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Managed
Income Fund, covering the six-month period from January 1, 1999 through June 30,
1999. Inside, you' ll find valuable information about how the fund was managed
during the reporting period, including a discussion with the portfolio manager,
Arthur J. MacBride.
The past six months have produced mixed results for fixed-income investors.
That' s because economic growth has been stronger than many analysts expected,
fueling fears that inflation pressures may re-emerge. Overseas economies that
had been in recession -- including Japan and the rest of Asia -- appear to have
begun to gain strength. The U.S. economy, which is now in its eighth year of
expansion, has also grown more robustly than expected. In response, the Federal
Reserve raised short-term interest rates modestly on June 30.
In this economic climate, U.S. Treasury securities declined, giving back all of
the gains they achieved during their remarkable rally last summer and fall.
Prices of other types of bonds fell less sharply or remained relatively
unchanged when investors shifted assets back into market sectors they had
previously avoided. Accordingly, many corporate bonds, mortgage-backed
securities, asset-backed securities and U.S. dollar-denominated foreign bonds
provided higher returns than U.S. Treasuries over the first half of 1999.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Managed Income Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
July 15, 1999
DISCUSSION OF FUND PERFORMANCE
Arthur J. MacBride, Portfolio Manager
How did Dreyfus Premier Managed Income Fund perform relative to its benchmark?
For the six-month period ended June 30, 1999, Dreyfus Premier Managed Income
Fund produced a total return of -1.73% for Class A shares, -2.10% for Class B
shares, -2.10% for Class C shares and -1.61 for Class R shares.(1) In
comparison, the Lehman Brothers Aggregate Bond Index (the "Index") returned
- -1.37% for the same period.(2)
While the fund's total return was negative, the portfolio continued to produce
strong income for shareholders. As of June 30, 1999, the fund produced an
annualized distribution rate of 6.11% for Class A shares, 5.62% for Class B
shares, 5.62% for Class C shares and 6.66% for Class R shares.(3)
What is the fund's investment approach?
The fund invests at least 65% of total assets in United States government debt
and investment-grade corporate bonds. We do not attempt to match the sector
percentages of any index, nor do we attempt to predict the direction of interest
rates by substantially altering the portfolio's sensitivity to changes in rates.
Instead, the heart of our investment process is individual security selection.
For instance, during the period the portfolio built up a 7% allocation to
commercial mortgage securities, even though these types of bonds were not
included in the Index. Commercial mortgages -- like most bonds with credit risk
- -- had been depressed in 1998 in the wake of the Asian economic crisis when
investors preferred to own the highest-quality bonds in the world, U.S. Treasury
bonds. For the six-month period ended June 30, 1999, however, commercial
mortgage securities have been the best performing bond sector, as global
economies improved and investors were willing to take more risk in return for
the greater returns.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
Another example of our willingness to depart from the confines of the Index is
our weighting in corporate bonds, which as of June 30, 1999, represented 43% of
the portfolio compared to 21% for the Index. We have three criteria for
investing in corporate bonds: 1) strong economic fundamentals, 2) credit
momentum -- that is, whether the company's credit characteristics are improving,
and 3) whether the bonds are attractively priced. For instance, during the
reporting period, the fund was invested in Nextel Communications, a company that
has been benefiting from strong cellular telephone subscriber growth, improving
cash flow generation and attractively priced debt.
What other factors influenced the fund's performance?
U.S. Treasury bonds, which performed so well in 1998 as interest rates were
falling, reversed direction in the first six months of 1999, as yields on the
30-year bond rose above 6% . During the first four months of 1999, corporate
bonds, benefiting from the stronger economic outlook, outperformed Treasury
securities. However, in May and June, the supply of corporate bonds increased
dramatically because of concerns over Y2K, the computer bug that has companies
bracing for the changeover from 1999 to 2000. Because of this concern, many
companies are trying to obtain their intermediate-term financing before the end
of the year. As with any commodity, however, when there is an oversupply, the
price falls.
Despite these unfavorable market conditions, we were pleased that a number of
corporate bonds in the portfolio performed very well. With oil prices rising
about 50% , energy issues, such as Conoco, performed well. Another strong
performer was a U.S. dollar-denominated Asian bond, Korea Development Bank, a
company that is benefiting from South Korea's improving economic environment. A
third example is BankBoston, whose bonds traded poorly last year because of the
bank' s heavy exposure to Latin America. However, because the outlook for Latin
American markets has improved over the past six months, this bond performed
well.
On the negative side, our investment in Lockheed Martin has performed poorly
because the aerospace company has generated less cash flow than bondholders
expected, due to problems in its commercial satellite division. In addition, the
fund's higher concentration of intermediate-term securities -- those maturing in
5-10 years -- was a disadvantage because this sector generally performed worse
than bonds maturing in 20-30 years.
What is the fund's current strategy?
The fund' s current strategy reflects its traditional bias toward the
higher-yielding sectors of the fixed income markets. The yield differential
between U.S. Treasury securities and corporates, mortgages, asset-backed and
commercial mortgage securities is historically wide. We believe these "spread"
sectors are attractive from both a fundamental and valuation basis. As a result,
the fund continues to remain overweighted in these sectors.
July 15, 1999
(1) 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. HAD THESE
CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
(2) SOURCE: LEHMAN BROTHERS --THE LEHMAN BROTHERS AGGREGATE BOND INDEX IS A
WIDELY ACCEPTED, UNMANAGED INDEX OF CORPORATE, GOVERNMENT AND GOVERNMENT AGENCY
DEBT INSTRUMENTS, MORTGAGE-BACKED SECURITIES AND ASSET-BACKED SECURITIES.
REFLECTS THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS.
(3) DISTRIBUTION RATE PER SHARE IS BASED UPON DIVIDENDS PER SHARE PAID FROM NET
INVESTMENT INCOME DURING THE PERIOD, (ANNUALIZED), DIVIDED BY THE NET ASSET
VALUE PER SHARE IN THE CASE OF CLASS A SHARES AND THE MAXIMUM OFFERING PRICE PER
SHARE IN THE CASE OF CLASS B, CLASS C, AND CLASS R SHARES AT THE END OF THE
PERIOD.
The Fund
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
June 30, 1999 (Unaudited)
Principal
BONDS AND NOTES--97.8% Amount($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE AND AVIATION--.7%
Compass Aerospace,
Sr. Sub. Notes, 10.125%, 2005 635,000 581,025
Lockheed Martin,
Notes, 7.75%, 2026 130,000 129,579
710,604
ASSET-BACKED CTFS.--9.2%
Access Financial Manufactured Housing Contract Trust,
Ser. 1995-1, Cl. A-2, 6.375%, 2021 745,452 (a) 740,085
Associates Manufactured Housing Trust,
Ser. 1997-2, Cl. A-4, 6.475%, 2028 316,000 317,547
Case Equipment Loan Trust,
Ser. 1998-C, Cl. A-4, 5.61%, 2005 251,000 (a) 248,466
Distribution Financial Services Trust,
Ser. 1999-1, Cl. A-5, 5.97%, 2013 1,349,000 (a) 1,319,701
EQCC Home Equity Loan Trust,
Ser. 1998-2, Cl. A-3F, 6.229%, 2013 1,057,000 (a) 1,056,149
Ford Credit Auto Owner Trust,
Ser. 1998-C, Cl. A-5, 5.86%, 2002 652,000 (a) 648,306
First Security Auto Owner Trust,
Ser. 1999-1, Cl. A-4, 5.74%, 2004 1,041,000 (a) 1,027,040
The Money Store Home Equity Trust:
Ser. 1996-C, Cl. A-6, 7.69%, 2024 637,000 (a) 642,198
Ser. 1997-C, Cl. AF-7, 6.945%, 2039 1,265,000 (a) 1,272,438
Ser. 1998-B, Cl. AF-4, 6.115%, 2021 229,000 (a) 227,952
Oakwood Mortgage Investors,
Ser. 1999-A, Cl. A-2, 5.89%, 2029 1,425,000 (a) 1,405,656
8,905,538
AUTOMOTIVE--1.5%
Lear,
Sr. Notes, 7.96%, 2005 665,000 (b) 649,307
Navistar International,
Notes, 7%, 2003 840,000 823,200
1,472,507
BANKING--2.9%
BankBoston,
Sr. Notes, 6.125%, 2002 689,000 678,633
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
BANKING (CONTINUED)
CitiCorp,
Sub. Notes, 8%, 2003 205,000 214,345
First National Bank of Boston,
Sub. Notes, 7.375%, 2006 758,000 754,043
National City,
Sub. Notes, 5.75%, 2009 355,000 324,569
NationsBank,
Sub. Notes, 6.8%, 2028 285,000 259,066
U.S. Bank,
Sub. Notes, 5.7%, 2008 630,000 576,258
2,806,914
BROADCASTING & MEDIA--4.8%
Adelphia Communications, Ser. B,
Sr. Notes, 8.125%, 2003 500,000 492,500
Brill Media,
Sr. Notes, 7.5%, 2007 540,000 (c) 434,700
Chancellor Media,
Sr. Sub. Notes, 9.375%, 2004 400,000 412,000
Charter Communications Holdings,
Sr. Notes, 8.25%, 2007 360,000 (b) 346,500
Comcast Cable Communications,
Sr. Notes, 6.2%, 2008 210,000 195,895
LodgeNet Entertainment,
Sr. Notes, 10.25%, 2006 300,000 307,125
Mediacom Capital,
Sr. Notes, 7.875%, 2011 500,000 (b) 448,750
Regional Independent Media Group,
Sr. Notes, 10.5%, 2008 535,000 (b) 537,675
TCI Communications,
Deb., 7.875%, 2026 410,000 431,458
Time Warner,
Sr. Notes, 6.625%, 2009 485,000 428,513
United International Holdings, Ser. B,
Sr. Secured Discount Notes, 0%, 2003 910,000 (d) 602,875
4,637,991
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.2%
Lyondell Chemicals,
Notes, 9.625%, 2007 405,000 (b) 418,163
Octel Developments,
Sr. Notes, 10%, 2006 300,000 310,500
Rohm & Haas,
Deb., 7.85%, 2029 400,000 (b) 399,708
1,128,371
COMMERCIAL MORTGAGE PASS-THROUGH CTFS.-6.9%
COMM,
Ser. 1999-1, Cl. A-2, 6.455%, 2008 1,455,000 1,396,735
CS First Boston Mortgage Securities:
Ser. 1998-C2, Cl. A-1, 5.96%, 2030 899,966 874,547
Ser. 1998-C2, Cl. A-2, 6.3%, 2030 1,012,000 971,454
First Union-Lehman Brothers Commercial Mortgage Trust,
Ser. 1998-C2, Cl. A-2, 6.56%, 2008 387,000 378,534
Lehman Brothers Commercial Conduit Mortgage Trust,
Ser. 1998-C1, Cl. A-2, 6.4%, 2007 765,000 744,999
Morgan Stanley Capital I:
Ser. 1997-CI, Cl. A-1C, 7.63%, 2020 1,215,000 1,246,329
Ser. 1998-WFI, Cl. A-2, 6.34%, 2007 381,000 (a) 373,380
Nationslink Funding,
Ser. 1998-2, Cl. A-1, 6%, 2030 767,631 (b) 747,220
6,733,198
CONSUMER--3.3%
Biovail International,
Sr. Notes, 10.875%, 2005 400,000 (b) 416,000
Dominos,
Sr. Sub. Notes, 10.375%, 2009 340,000 (b) 345,100
Finlay Enterprises,
Deb., 9%, 2008 125,000 120,000
ICN Pharmaceuticals, Ser. B,
Sr. Notes, 9.25%, 2005 530,000 528,675
KinderCare Learning Centers,
Sr. Sub. Notes, 9.5%, 2009 325,000 310,375
Protection One Alarm Monitoring,
Sr. Discount Notes, 13.625%, 2005 358,000 402,303
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER (CONTINUED)
Rayovac, Ser. B,
Sr. Sub. Notes, 10.25%, 2006 195,000 209,625
Royal Caribbean Cruises,
Sr. Notes, 7.5%, 2027 430,000 400,770
Standard Commercial,
Sr. Notes, 8.875%, 2005 580,000 481,400
3,214,248
ENERGY--2.7%
Calenergy,
Notes, 8.48%, 2028 250,000 266,712
Coastal:
Notes, 6.2%, 2004 985,000 963,833
Sr. Notes, 8.125%, 2002 420,000 436,650
Conoco,
Sr. Notes, 5.9%, 2004 580,000 565,740
Oryx Energy,
Notes, 10%, 2001 80,000 84,283
Williams,
Notes, 6.2%, 2002 280,000 274,974
2,592,192
ENTERTAINMENT--.2%
United Artists Theatres, Ser. B,
Sr. Sub. Notes, 9.75%, 2008 300,000 214,500
ENVIRONMENTAL--1.1%
Allied Waste North America:
Sr. Notes, 7.375%, 2004 180,000 171,450
Sr. Notes, 7.625%, 2006 70,000 (b) 65,538
USA Waste Services,
Sr. Notes, 7.125%, 2007 340,000 341,255
WMX Technologies:
Notes, 6.625%, 2002 135,000 134,939
Notes, 7.7%, 2002 360,000 371,845
1,085,027
FINANCIAL SERVICES--7.0%
Associates Corp. of North America,
Sr. Notes, 5.8%, 2004 500,000 483,217
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES (CONTINUED)
Donaldson, Lufkin, Jenrette,
Sr. Notes, 5.875%, 2002 750,000 739,450
Equitable Life Assurance Society of the U.S.,
Sr. Notes, 7%, 2028 415,000 397,435
FMR,
Bond, 7.57%, 2029 465,000 (b) 462,357
GS Escrow,
Sr. Notes, 7%, 2003 500,000 489,603
Goldman Sachs Group,
Notes, 6.65%, 2009 895,000 864,199
Heller Financial,
Notes, 6%, 2004 645,000 625,462
Lehman Brothers Holdings:
Notes, 6.25%, 2003 685,000 666,017
Notes, 8.5%, 2007 610,000 637,376
Paine Webber Group,
Sr. Notes, 6.375%, 2004 715,000 695,727
Sears Roebuck Acceptance,
Notes, 6%, 2003 780,000 768,437
6,829,280
FOOD & BEVERAGES--2.0%
Nabisco,
Notes, 6%, 2001 735,000 727,729
Tricon Global Restaurants,
Sr. Notes, 7.45%, 2005 1,260,000 1,255,530
1,983,259
HEALTHCARE--1.0%
Global Health Sciences,
Sr. Notes, 11%, 2008 265,000 197,425
Tenet Healthcare,
Sr. Notes, 8%, 2005 815,000 797,681
995,106
INDUSTRIAL--3.3%
Burlington North Santa Fe,
Deb., 6.75%, 2029 270,000 247,237
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL (CONTINUED)
Eagle-Picher:
Holdings,
Sr. Discount Notes, 0%, 2003 600,000 (d) 313,500
Industries,
Sr. Sub. Notes, 9.375%, 2008 375,000 358,125
HMH Properties, Ser. A,
Sr. Notes, 7.875%, 2005 550,000 522,500
Lennar,
Sr. Notes, 7.625%, 2009 280,000 266,001
Packaging Corp. Of America,
Sr. Sub. Notes, 9.625%, 2009 155,000 (b) 158,100
Plastic Containers, Ser. B,
Sr. Secured Notes, 10%, 2006 325,000 364,000
Sony,
Notes, 6.125%, 2003 130,000 128,770
Xerox Capital Europe,
Notes, 5.875%, 2004 925,000 900,701
3,258,934
METALS--.2%
U.S. Can, Ser. B,
Sr. Sub. Notes, 10.125%, 2006 175,000 183,531
REAL ESTATE INVESTMENT TRUSTS--.6%
AvalonBay Communities,
Sr. Notes, 6.5%, 2003 305,000 296,548
Spieker Properties,
Notes, 6.8%, 2004 265,000 260,491
557,039
RETAIL--.8%
Fedders North America,
Sr. Sub. Notes, 9.375%, 2007 600,000 609,000
Federated Department Stores,
Sr. Notes, 8.125%, 2002 125,000 130,648
739,648
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--.5%
DynCorp,
Sr. Sub. Notes, 9.5%, 2007 520,000 507,000
TELECOMMUNICATIONS--4.5%
GCI,
Sr. Notes, 9.75%, 2007 400,000 396,000
Level 3 Communications,
Sr. Notes, 9.125%, 2008 550,000 543,125
Logix Communications Enterprises,
Sr. Notes, 12.25%, 2008 700,000 633,500
Lucent Technologies,
Deb., 6.45%, 2029 400,000 366,643
McLeod USA,
Sr. Notes, 9.25%, 2007 350,000 349,125
Nextel Communications,
Sr. Discount Notes, 0%, 2002 1,275,000 (d) 891,938
Splitrock Services, Ser. B,
Sr. Notes, 11.75%, 2008 500,000 470,000
Time Warner Telecommunications,
Sr. Notes, 9.75%, 2008 305,000 314,150
21st Century Telecom Group,
Sr. Discount Notes, 0%, 2003 1,040,000 (d) 431,600
4,396,081
UTILITIES--2.6%
Avon Energy Partners Holdings,
Sr. Notes, 6.73%, 2002 950,000 (b) 947,708
CMS Panhandle Holding,
Notes, 6.125%, 2004 599,000 (b) 583,271
National Rural Utilities,
Coll. Trust Ctfs., 5.7%, 2010 1,080,000 989,306
2,520,285
FOREIGN--3.1%
Canadian National Railway,
Notes, 6.9%, 2028 370,000 340,672
Diageo Capital,
Notes, 6.625%, 2004 960,000 962,623
Korea Development Bank,
Bond, 7.375%, 2004 970,000 953,699
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
FOREIGN (CONTINUED)
Province of Quebec,
Sr. Notes, 5.75%, 2009 795,000 735,773
2,992,767
U.S. GOVERNMENTS--8.3%
U.S Treasury Bonds,
7.25%, 8/15/2022 188,000 210,564
U.S Treasury Notes:
6.5%, 8/3/2001 4,732,000 4,816,277
7.875%, 11/15/2004 880,000 959,781
U.S. Treasury Principal Strips,
0%, 8/15/2022 8,567,000 2,056,624
8,043,246
U.S. GOVERNMENT AGENCIES/MORTGAGE-BACKED--29.4%
Federal Home Loan Mortgage Corp.:
6.5% 669,073 (e) 646,699
6.5%, 5/1/2029-6/1/2029 5,895,102 5,701,624
7% 1,893,000 (e) 1,874,657
7.5%, 9/1/2012 645,865 658,783
Federal National Mortgage Association:
5.5%, 12/1/2013-1/1/2014 5,790,972 5,477,855
6.5% 7,199,387 (e) 6,916,681
7%, 7/1/2022-7/1/2023 642,524 640,440
7.5% 4,056,306 (e) 4,084,193
7.5%, 4/1/2005 30,119 30,120
Government National Mortgage Association I:
6.5%, 1/15/2029-2/15/2029 1,967,195 1,901,413
8%, 7/15/2027 667,694 688,764
28,621,229
TOTAL BONDS AND NOTES
(cost $97,655,938) 95,128,495
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
WARRANTS--.0% Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS
Splitrock Services (warrants) 500 35,000
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $97, 655,938) 97.8% 95,163,495
CASH AND RECEIVABLES (NET) 2.2% 2,155,494
NET ASSETS 100.0% 97,318,989
(A) SECURITIES HELD IN WHOLE OR IN PART BY THE CUSTODIAN IN A SEGREGATED
ACCOUNT AS COLLATERAL FOR SECURITIES PURCHASED ON A FORWARD COMMITMENT BASIS.
(B) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT JUNE 30, 1999,
THESE SECURITIES AMOUNTED TO $6,525,397 OR 6.7% OF NET ASSETS.
(C) VARIABLE INTEREST RATE--INTEREST RATE SUBJECT TO CHANGE PERIODICALLY.
(D) ZERO COUPON UNTIL YEAR SHOWN AT WHICH TIME A STATED COUPON RATE BECOMES
EFFECTIVE.
(E) PURCHASED ON A FORWARD COMMITMENT BASIS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
Cost Value
- ------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS ($):
Investments in securities--See Statement of Investments 97,655,938 95,163,495
Cash 2,572,766
Receivable for investment securities sold 12,582,169
Interest receivable 1,164,573
Receivable for shares of Beneficial Interest subscribed 414,126
111,897,129
- ------------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 68,697
Due to Distributor 18,105
Payable for investment securities purchased 14,380,697
Payable for shares of Beneficial Interest redeemed 110,641
14,578,140
- ------------------------------------------------------------------------------------
NET ASSETS ($) 97,318,989
- ------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 109,011,208
Accumulated distributions in excess of investment income--net (41,754)
Accumulated net realized gain (loss) on investments (9,158,022)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3 (2,492,443)
- ------------------------------------------------------------------------------------
NET ASSETS ($) 97,318,989
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets ($) 66,078,152 16,484,968 4,975,612 9,780,257
Shares Outstanding 6,415,940 1,600,351 482,692 949,626
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 10.30 10.30 10.31 10.30
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1999 (Unaudited)
- ------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME ($):
INTEREST INCOME 3,635,257
EXPENSES:
Management fee--Note 2(a) 353,001
Distribution and service fees--Note 2(b) 195,754
TOTAL EXPENSES 548,755
INVESTMENT INCOME--NET 3,086,502
- ------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 3 ($):
Net realized gain (loss) on investments (2,846,341)
Net unrealized appreciation (depreciation) on investments (2,074,065)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (4,920,406)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS (1,833,904)
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998
- ------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS ($):
Investment income--net 3,086,502 6,350,123
Net realized gain (loss) on investments (2,846,341) 1,022,323
Net unrealized appreciation (depreciation)
on investments (2,074,065) (2,710,587)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (1,833,904) 4,661,859
- ------------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (2,140,712) (4,912,986)
Class B shares (451,929) (615,010)
Class C shares (144,326) (146,175)
Class R shares (320,064) (787,520)
TOTAL DIVIDENDS (3,057,031) (6,461,691)
- ------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 3,468,022 9,151,854
Class B shares 5,034,279 12,907,066
Class C shares 1,539,501 5,118,598
Class R shares 1,722,384 10,863,405
Dividends reinvested:
Class A shares 1,661,510 3,841,225
Class B shares 197,080 301,251
Class C shares 22,419 30,245
Class R shares 288,999 668,194
Cost of shares redeemed:
Class A shares (7,628,917) (12,634,036)
Class B shares (4,260,064) (3,590,805)
Class C shares (1,695,585) (732,720)
Class R shares (2,442,432) (11,633,078)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (2,092,804) 14,291,199
TOTAL INCREASE (DECREASE) IN NET ASSETS (6,983,739) 12,491,367
- ------------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period 104,302,728 91,811,361
END OF PERIOD 97,318,989 104,302,728
Undistributed investment income (41,754) (71,225)
(distributions in excess of investment income)--net
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998
- ------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 326,196 831,761
Shares issued for dividends reinvested 157,137 349,834
Shares redeemed (717,122) (1,150,108)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (233,789) 31,487
- ------------------------------------------------------------------------------------
CLASS B
Shares sold 474,228 1,184,201
Shares issued for dividends reinvested 18,643 27,508
Shares redeemed (402,152) (328,343)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 90,719 883,366
- ------------------------------------------------------------------------------------
CLASS C
Shares sold 144,178 469,333
Shares issued for dividends reinvested 2,114 2,760
Shares redeemed (159,784) (67,335)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (13,492) 404,758
- ------------------------------------------------------------------------------------
CLASS R
Shares sold 162,270 995,589
Shares issued for dividends reinvested 27,339 60,836
Shares redeemed (230,226) (1,068,058)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (40,617) (11,633)
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single fund share.Total return shows how much your investment in the fund would
have increased (or decreased) during each period , assuming you had reinvested
all dividends and distributions. These figures have been derived from the fund's
financial statements.
Six Months Ended
June 30, 1999 Year Ended December 31,
--------------------------------------------------
CLASS A SHARES (Unaudited) 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning
of period 10.81 11.01 10.73 11.08 10.12 11.38
Investment Operations:
Investment income--net .33 .73 .73 .69 .75 .69
Net realized and unrealized
gain (loss) on investments (.51) (.19) .27 (.35) .96 (1.26)
Total from Investment Operations (.18) .54 1.00 .34 1.71 (.57)
Distributions:
Dividends from investment
income--net (.33) (.74) (.72) (.69) (.75) (.69)
Net asset value, end of period 10.30 10.81 11.01 10.73 11.08 10.12
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (A) (3.49)(b) 4.90 9.80 3.42 17.32 (5.14)
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .95(b) .95 .95 .95 .95 .98(c)
Ratio of net investment income
to average net assets 6.28(b) 6.62 6.74 6.48 7.08 6.32
Portfolio Turnover Rate 179.22(d) 238.95 244.44 251.66 236.10 270.00
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 66,078 71,902 72,878 77,305 80,782 79,548
(A) EXCLUSIVE OF SALES LOAD.
(B) ANNUALIZED.
(C) 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%.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
June 30, 1999 Year Ended December 31,
--------------------------------------------
CLASS B SHARES(A) (Unaudited) 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 10.81 11.01 10.73 11.08 10.12
Investment Operations:
Investment income--net .29 .64 .65 .61 .67
Net realized and unrealized gain (loss)
on investments (.51) (.19) .27 (.35) .96
Total from Investment Operations (.22) .45 .92 .26 1.63
Distributions:
Dividends from investment income--net (.29) (.65) (.64) (.61) (.67)
Net asset value, end of period 10.30 10.81 11.01 10.73 11.08
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (B) (4.23)(c) 4.10 8.97 2.54 16.55
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.70(c) 1.70 1.70 1.70 1.69
Ratio of net investment income
to average net assets 5.51(c) 5.81 5.98 5.77 6.41
Portfolio Turnover Rate 179.22(d) 238.95 244.44 251.66 236.10
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 16,485 16,325 6,896 4,973 2,236
(A) 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.
(B) EXCLUSIVE OF SALES LOAD.
(C) ANNUALIZED.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1999 Year Ended December 31,
--------------------------------------------
CLASS C SHARES(A) (Unaudited) 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 10.82 11.02 10.73 11.08 10.12
Investment Operations:
Investment income--net .29 .64 .64 .61 .67
Net realized and unrealized gain (loss)
on investments (.51) (.19) .29 (.35) .96
Total from Investment Operations (.22) .45 .93 .26 1.63
Distributions:
Dividends from investment income--net (.29) (.65) (.64) (.61) (.67)
Net asset value, end of period 10.31 10.82 11.02 10.73 11.08
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (B) (4.23)(c) 4.17 8.96 2.49 16.54
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.70(c) 1.69 1.70 1.68 1.66
Ratio of net investment income
to average net assets 5.51(c) 5.74 5.95 5.69 6.03
Portfolio Turnover Rate 179.22(d) 238.95 244.44 251.66 236.10
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 4,976 5,369 1,007 420 67
(A) 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.
(B) EXCLUSIVE OF SALES LOAD.
(C) ANNUALIZED.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
June 30, 1999 Year Ended December 31,
--------------------------------------------------
CLASS R SHARES (Unaudited) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning
of period 10.81 11.01 10.73 11.08 10.12 11.38
Investment Operations:
Investment income--net .34 .74 .76 .72 .78 .72
Net realized and unrealized
gain (loss) on investments (.51) (.17) .27 (.35) .96 (1.26)
Total from Investment Operations (.17) .57 1.03 .37 1.74 (.54)
Distributions:
Dividends from investment
income--net (.34) (.77) (.75) (.72) (.78) (.72)
Net asset value, end of period 10.30 10.81 11.01 10.73 11.08 10.12
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (A) (3.25)(b) 5.26 9.97 3.58 17.71 (4.88)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .70(b) .70 .70 .70 .70 .71(c)
Ratio of net investment income
to average net assets 6.52(b) 6.77 6.99 6.74 7.31 6.59
Portfolio Turnover Rate 179.22(d) 238.95 244.44 251.66 236.10 270.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 9,780 10,707 11,031 12,567 11,532 9,588
(A) EXCLUSIVE OF SALES LOAD.
(B) ANNUALIZED.
(C) 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%.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Managed Income Fund (the "fund") is a separate diversified
series of The Dreyfus/Laurel Funds Trust (the "Trust") which is registered under
the Investment Company Act of 1940, 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
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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
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) . Each Trustee receives
$40,000 per year, plus $5,000 for each joint Board meeting of The Dreyfus/Laurel
Funds, Inc., The
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, retained
$974 during the period ended June 30, 1999, 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 June 30, 1999, Class A, Class B and Class C shares were charged
$86,152, $62,276 and $19,925 respectively, pursuant to the Plan and Class B and
Class C shares were charged $20,759 and $6,642, 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 June 30,
1999, amounted to $179,796,802 and $182,386,965, respectively.
At June 30, 1999, accumulated net unrealized depreciation on investments was
$2,492,443, consisting of $279,840 gross unrealized appreciation and $2,772,283
gross unrealized depreciation.
At June 30, 1999, 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 June
30, 1999, the fund did not borrow under the Facility.
The Fund
NOTES
For More Information
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 349/649AR996
The Fund
